distinct or … extinct tom peters seminar2000 lessons in leadership orlando 21september2000

Distinct or … ExtinctTom Peters Seminar2000

LESSONS IN LEADERSHIP

Orlando21September2000

Summer 2000 …

KOA wires up!

N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.

Cell phones, Voice mail, email,

Internet access

Levi’s and Philips

Stephano Marzano (Philips Design), Levi Strauss, Italian

designer Massimo Ossi: jacket with cell phone and MP3 player

built into pockets!

Source: Red Herring (09.00)

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

“The period 2000-2002 will bring the single greatest change in

worldwide economic and business conditions since we came down from the trees.”

David Schneider & Grady Means, MetaCapitalism

“The corporation as we know it, which is now 120 years old, is

not likely to survive the next 25 years. Legally and

financially, yes, but not structurally and economically.”

Peter Drucker, Business 2.0 (08.00)

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

The Kotler Doctrine:

1965-1980: R.A.F.(Ready.Aim.Fire.)

1980-1995: R.F.A.(Ready.Fire!Aim.)

1995-????: F.F.F.(Fire!Fire!Fire!)

“It used to be that the big

ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional

Venture Partners)

“Strategy meetings held once or twice

a year” to “Strategy meetings needed

several times a week”

Source: New York Times on Meg Whitman/eBay

John Roth’s “Rules” [Nortel]

1. Our strategies must be tied to leading-edge customers on the attack.

2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.

3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology

and products our customers need.4. Success is achieved by leading change,

not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.

Source: Abridged from The Wall Street Journal (07.25.00)

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work I

The Destruction Imperative!

Forget > Learn

“The problem is never how to get new, innovative thoughts into

your mind, but how to get old ones out.”

Dee Hock

“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman

Sachs’ Investment Policy Committee,

answered: I’m sure there are success stories out there, but

at this moment I draw a blank.”Mark Sirower, The Synergy Trap

“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.

We buy the engineers and the next generation product. …”

John Chambers, Cisco

Pentium III 800MHz: $42,893.00/#

Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

The [New] Ge Way

DYB.com

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Paradox Redux

Atlanta: +113,600 = #1 metro area

Layoffs [major]: BellSouth, Lockheed, Coca-Cola

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

Headline: “Bank of America to Cut … 10,000 Jobs”

“Middle-level and senior managers are expected to be

the principal targets of the job cutbacks.”

Source: The New York Times (07.29.2000)

Qwest Announces 11,000 Layoffs

“The cuts will be concentrated among

management employees.”

Source: AOL 09.07.2000

And Now the Equivalent …

White Collar Revolution!

108 X 5vs.

8 X 1*

* 540 vs. 8

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

“A bureaucrat is an expensive

microchip.”Dan Sullivan, consultant and

executive coach

Automation+

75% of what we do: 40 “expert” decision rules!

“Assetless Company”

John Bryan, CEO, on selling all Sara Lee’s manufacturing

“Don’t own nothin’ if you can help it. If you can, rent your shoes.”

F.G.

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

“We own all the intellectual property, we farm out all the

direct labor.”

Jim McDonnell, VP, IBM

RR on “Assetless” [J.B.] Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

Cemex and FDX!

[Pervasive “Risk Markets”

“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to

install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which

neighborhoods you go. The premium you pay reflects your actual driving risk.”

Stan Davis & Christopher Meyer, futureWEALTH]

Brand Inside

Brand Work: The Professional Service

Firm Model & The WOW Project

So what will be the Basic Building

Block of the New Org?

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

New OrleansApril 2000:

NAPM

You are the … Rock Stars

of the B2B Age!

ChicagoNovember 1999:

HRMAC

“support function” / “cost center” / “bureaucratic

drag”

or …

Are you “Rock Stars of the

Age of Talent”

Every job done in W.C.W. is also done

“outside” … for profit!

Credo

“WORK WORTH

PAYING FOR”

C.I.O. to

C.E.F.R.N.S.*

*Chief Evangelist For

Really Neat Stuff

Messages:

Every Dept. = PSF

Or Get Outsourced/ eAutomated.

Now.

Do or Die!

The Raw Material …

The WOW Project!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”

CEO, F100 financial services company (10-98)

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

T.T.D.sThe next slide is the first of many

“T.T.D.” activities. I.e.: Things To Do, shorthand forms of training

exercises I use. Also: Many of these T.T.D. slides, as

well as most of the “Stuff That Matters” section, have accompanying Notes. (Use Normal View to access.)

Tom Peters

T.T.D.: Now!– List all projects– Carefully describe a “WOW Outcome” for you

and the Client– Score (!) all projects on WOW, Beauty, Impact,

Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that

emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points

Brand Inside

Brand You: Distinct …

or Extinct

2010 “Demographics”:

By 2010, full-time workers will be in the

minoritySource: MIT study (28August2000)

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2000

MasteryRolodex Obsession

Finishing SkillsEntrepreneurial Instinct

CEO/Leader/BusinesspersonMistress of Improv

Sense of HumorIntense Appetite for Technology

Groveling Before the YoungEmbracing “Marketing”

Passion for Renewal

Minimum New Work SurvivalSkillsKit2000

Sense of Humor = N0.1Mastery

Rolodex ObsessionFinishing Skills

Entrepreneurial InstinctCEO/Leader/Businessperson

Mistress of ImprovIntense Appetite for Technology

Groveling Before the YoungEmbracing “Marketing”

Passion for Renewal

T.T.D./Assignment

Construct a 1/8-page or 1/4-page ad for

Brand You … for the Yellow Pages

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

T.T.D./Your R.I.P.

IS IT … FORMAL? IS IT ... WOW!?

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

Stan Davis & Christopher Meyer, futureWEALTH

T.T.D./R.I.P.

Use by yourself.Use with your mates.

Use [quantitatively?] as a measure of departmental/

P.S.F. renewal.

Use in formal eval process.

America[ns] The … Beautiful Re-inventors

Ben F.Ralph W.E.

Dale C.N.V.P.

Werner E./est“Tony R.”/“Coals Dude”

Stephen

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

THE I work for a company called

Me STREET JOURNAL

Adventures in Capitalism

THE rise up and flee your cubicle STREET JOURNAL

Adventures in Capitalism

Some people enjoy the corporate life.

Then again, some people enjoy nipple clamps.

Source: Ad tag line, FreeAgent.com

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

Brand Inside

Brand Talent: The Great War for Talent

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

The Case

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“Seller’s Market”: Tomorrow’s Headline*

“Molecular biologists are up 3 points, economists

down 1/4, in moderate trading”

*futureWEALTH, Stan Davis and

Christopher Meyer

The Talent Ten

Obsession! Greatness!

Performance!Pay!

Youth!Diversity!Women!Weird!

Opportunity!Leading Genius!

1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

From “1, 2 or 3” [JW] to … “Best talent in each

industry segment to build best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

2. Greatness

Only The Best!

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH

INITIATIVEE.g.: COO of IKEA to head

international expansion

Ed Michaels, War for Talent (05.17.00)

3. Performance

Up or out!

“We believe companies can increase their market cap 50 percent in 3 years. Steve

Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put

more talented, higher paid managers in charge. He increased

profitability from $25 million to $80 million in 2 years.”


4. Pay

Fork Over!

“Top performing companies are two to four times more likely

than the rest to pay what it takes to prevent losing

top performers.”


5. Youth

Grovel Before the Young!

“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s

the relentless rise of the quasi-adolescents who wield them.”

Michael Schrage

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An

outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We

used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in

their careers.”


“Talent” and a $2T enterprise??????

6. Diversity

Mess Rules!

“Where do good new ideas come from?That’s simple! From

differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to

mix ages, cultures and disciplines.”

Nicholas Negroponte

“Diversity defines the health and wealth of nations in a new century. Mighty is the

mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the

rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps

isolation. It spawns creativity, nourishes the human spirit, spurs economic growth

and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

7. Women

Born to Lead!

Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it

easier to meet new people? Who asks more questions in a conversation? Who is a better

listener? Who has more interest in communication skills? Who is more inclined to get involved?

Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &

Susan Kane-Benson

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

It’s Girls, Stupid!

1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in

high-level math and science courses

More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in

higher numbers

Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)

Source: The Atlantic Monthly (May2000)

8. Weird

The Cracked Ones Let in the Light!

The Cracked Ones Let in the Light

“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found

among non-conformists, dissenters and rebels.”

David Ogilvy

“He grew his hair long, played guitar in a rock band, chased

girls, got into trouble. At age 17 he was flogged by his house

master, who described him as ‘the most difficult boy I’ve ever

had to deal with.’ ”

Solution?

Slip Ritalin into his food …

Or …

Elect Him Prime Minister

Tony Blair*

*talk/May 2000

Axiom: Never hire anyone without an aberration in their

background. (Find the One Ton Cookie Man!)

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Human Enablement Department

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

“The challenge for IBM, AT&T and other mainstream companies is to

re-instill a sense of adventure in recruits.”

Burke Stinson, AT&T

10. Leading Genius

It’s All Theater All the Time!

The Creative Arts: Acquisition & Development of Talent = All

BalletSymphony

TheaterSports

Combat

Alan Kay on PARC’s Bob Taylor

“He was a connoisseur of

talent.”

Employee retention and satisfaction:

Overwhelmingly, based on their immediate manager!

Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s

Greatest Managers Do Differently

44 Players = 44 Projects = 44 different success measures =

44 different styles (of you)

One [if lucky] “1 in 10 years”[Scout: Great career = 1 sleeper find]

Exec: Can we really use individualized evaluations for everyone?

TP: We do routinely for “Top 25,” so why not? Few supervisors have more than 10

folks directly reporting to them. True, there’d have to be some bounds. I guess. But why not a $60,000 housekeeper who

sets the character of a full floor of a $150,000,000 hotel property?

Insights from 80,000 managers:

“People don’t change much.“Don’t waste time trying to put in

what was left out.“Try to draw out what was left in.

“That is hard enough.”



Talent >

Experience, Skills, Willpower



Mantra2000

Talent = Brand

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

“This is all I ‘know’ in the

world!”Tom Peters

I. THE IDEA

“4Fs”: Find a

Fellow Freak

Faraway

World’s Biggest Waste …

Selling “Up”

Heart of the Matter

F2F!*

*Freak to Freak … or K2K [Kook to Kook]

Create a Personal University of Weird!*

*AP to TP: “Make your own McKinsey.”

II. THE NUGGET

Do Something. Do Anything.

Get Going.Now.

Opportunity ALWAYS Knocks

VFCJ* “Strategy”

*Volunteer For Crappy Jobs

Is It …

“The Oh-Shit-I-Wish-It-Were-Over Memorial Day picnic”

or

“The First Annual Seriously

Kewl Celebration of Our Incredible Staff”

Is It …

Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?

Or …

A stealth opportunity to address the War for Talent via … a thoroughgoing review

of how safety and environmental issues contribute to making this a

Great Place to Work?

Is It …

Fix these bloody customer problems that have cropped up with the new 2783B?

Or …

A chance to work with a hotshot, young division GM on …

using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the

heart of the Product Design Process?

Reframers’ Rules:

Rule 1: Never accept an assignment as given! (Please.)

Rule 2: You’re never so powerful as when you are “powerless”!

Rule 3: Every “small” project contains the entire

enterprise DNA!

III. THE TOOL

Prototyping Mania!

Culture of Prototyping

“Effective prototyping may be

the most valuable core competence an innovative organization can

hope to have.”

Michael Schrage

Secret:

Creating the …

Rhythm of Prototyping

“Success is the ability to go from failure to

failure without losing your enthusiasm.”

Winston Churchill (as quoted by John Peterman)

IV. THE SOFT STUFF

Show Up!Connect!

Infect!

Message: It’s Community

Organizing, stupid!

See: Saul Alinsky’s Rules for Radicals

V. BOTTOM LINE

The Enemy!

Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations” (10/26/98)

Consider: Are any of these four attributes

characteristic of those who “made the history books”?

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Reprise: Brand Inside

The White Collar Revolution & The Web [Destruction Rules!]

PSF as Building Block [Work Worth Paying For]

Work Worth Paying For = WOW Projects!

Brand You [Everybody!]

The Great War for Talent!

Boss-free Implementation of STM! [F2F]

N.W.O.: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are

for fools.”)• I love “Yes men”• Self-contained

• Seat 9B, AA233• Address: [email protected]• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal

as breathing• I love Misfits!• I love partners

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Re-invent with E-Commerce!

S3: Fighting Back via Systems integration!S4: Design Matters!

S5: It’s the Experience!S6: Women Rule!

S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

Forces @ Work II

The Commodity Trap

Quality Not Enough!

“Quality as defined by few defects is becoming the

price of entry for automotive marketers

rather than a competitive advantage.”

J.D. Power

Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

“The ‘surplus society’ has a surplus of similar companies, employing similar

people, with similar educational backgrounds, working in similar jobs,

coming up with similar ideas, producing similar things, with similar

prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

“When we did it ‘right’ it was still pretty

ordinary.”

Barry Gibbons on

“Nightmare No. 1”

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! S7: Embracing an Age of Self-Determination!

S8: Brand Power & Summary!

Brand Outside

Strategy 1:

Lead the Customer!

“If you worship at the throne of the voice of the customer, you’ll get only

incremental advances.”Joseph Morone, President,

Bentley College

“Our strategies must be tied to leading edge

customers on the attack. If we focus on the defensive

customers, we will also become defensive.”

John Roth, CEO, Nortel

Lucent Stumbles!

Cause(s): (1) Listening to BIGGEST, SLUGGISH

customers. (2) Failing to exploit the Web internally or externally

Source: Business Week (08.07.00)

Message …

Biggest is not always [often?] most beautiful!

F2F Rules: How’s your “freaks” portfolio?




S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!


Brand Outside

Strategy 2:Use E-Commerce to

Re-invent Everything!

OVERVIEW

www.cyveillance.com

08.30.2000/1221AM:

2,461,940,629

www.cyveillance.com

09.15.2000/0653AM:

2,582,967,733

16 days, 6 hours, 32 minutes …

+121,027,104

Tomorrow Today: Cisco!

90% of $20B (=$50M/day)

75% mfg. outsourced; 50% of orders routed to supplier who ships direct

Gross margin: 65%; Net margin: 28%

Savings in service and support from customer self-management: $550M

Oracle: Service Call Center

$300.00 per transaction to $1.50

Savings: $550,000,000

Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B;

$1B additional this year]

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the

Web per se.

Schwab: $25B per week in asset transactions [80% of trades]

[Transition to e.Schwab: Rev. fell, then quickly doubled]

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

COMMUNITY SERVICES!/CUSTOMER CONTROL!

Tomorrow Today: Cisco!

90% of $20B; save $550M

C.Sat e >> C.Sat H

Customer Engineer Chat Rooms/Collaborative

Design ($1B “free” consulting) (45,000 customer problems a week solved via

customer collaboration)

Cisco’s Secret

Trust (Openness to partners!!!!!)

B2C Success

“Genuine brand strength”

“Build community”Source: Geoffrey Moore

Welcome to

D.I.Y. Nation!“Changes in business processes will

emphasize self service. Your costs as a

business go down and perceived service goes up because customers

are conducting it themselves.” Ray Lane, Oracle

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my universe!

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

I’net Freedom Manifesto

I AM IN CHARGE HERE! I CAN DO WHATEVER

I NEED OR WANT TO DO WHENEVER I WANT

TO DO IT!

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

“Michael Dell comes on the scene and eliminates the retailer. If you order a

Dell computer before 1030 in the morning, he will fabricate it in the

afternoon, burn it in later in the day, and ship it to you at night. You

cannot compete with Dell if you’re trying to ship boxes to a store.”

Peter Sealey, marketing prof, UC Berkeley

“The Web enables total transparency. People with

access to relevant information are beginning to challenge any type of

authority. The stupid, loyal and humble customer, employee, patient

or citizen is dead.”


“In the network economy, the Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front,

store interior, sales staff and post-sales support all rolled into one.”

Jakob Nielsen, Designing Web Usability

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

RADICAL STRATEGIES

REQUIRED

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

“One cannot be tentative about this. Excuses like ‘channel

conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you

never heard of 24 months ago.”

Jack Welch [07.00/Forbes.com]

ACT NOW, ACT FAST,

KEEP ACTING

“It’s better to be first with less than last with more. Success on

the Web isn’t just about time to market, it’s also about

‘time to learning.’ ”

Jeff Levy, eHatchery

SUMMARY I: REINVENT

EVERYTHING

WebWorld = Everything

Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry

Web/B2B as ultimate wake-up call to “commodity producers”

Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data

Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)

Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything

as next door neighbor

“Supply Chain” 2000:

“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized

home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My

Yahoo for Company X and hooks into every network associated with Company X. And Joe Employee,

business partners and customers don’t have to be in the office. They can log on from their own cell phone,

Palm Pilot, pager or home office system.”

Red Herring (09.2000)

Message: eCommerce is not a technology play! It is a

relationship, partnership, organizational and

communications play, made possible by new

technologies.

Message: There is no such thing as an effective B2B or

Internet-supply chain strategy in a low-trust,

bottlenecked-communication, six-layer

organization.

SUMMARY II: A DREAMER’S

MEDIUM!

“There is no use trying,” said Alice. “One can’t believe impossible things.”

“I daresay you haven’t had much practice,” said the Queen. “When I was

your age, I always did it for half an hour a day. Why, sometimes I’ve

believed as many as six impossible things before breakfast.”

Lewis Carroll

I’net …

… allows you to dream dreams you could never have imagined before!

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Norwest/ Wells

“It” is real! It is “Life and Death”!Dream BIG!

Start Now! Study Hard! Play Hard! Play Fast! Go on Offence!

Hire great folks! (They ain’t cheap. They are young!)

Don’t cut corners on infrastructure!

Rem: “Age of the Never Satisfied Customer”!

We ain’t seen nothin’ yet!

Brand Outside

Strategy 3: Fighting Back via

Systems Integration!

THE CASE

B2B

1999 – 2004: 50X

2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)

T

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

Solectron, IBM, Nortel, Matsushita, Seagate, Etc.

E2Open.com

$700B

And …

eScout.com …

community banks & small businesses; 6,000+

members; 100 new per week

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

“Net Nips Real Estate Sales Fees”

Headline, p.1B, USAToday 07.05.00*

*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

Message: “BOX” SELLERS LOSE!

THE RESPONSE

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

09.11.2000: HP bids $18,000,000,000

for PricewaterhouseCoopers

IT consulting bus!

“Systems Integrators” Unite [And Conquer]

Cisco’s winning strategy

[USAToday 07.11]: “Become the ‘Go-to’ Systems

Provider”

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

“Customer Satisfaction” to “Customer Success”

“We’re getting better at [Six Sigma] every day. But we really

need to think about the customer’s profitability. Are customers’

bottom lines really benefiting from what we provide them?”

Bob Nardelli, GE Power Systems

GE’s New Six Sigma Approach

Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s World.Source: Steve Kerr, VP, GE

Defense-Offense: Systems Integration/HVA

Delphi, DanaUnited Technologies,

Corning, GE, Sun, Carpet One, Bud …

[Anybody in their right mind!]

E.g. …

UTC/Otis + Carrier: boxes to “integrated building systems”

Brand Outside

Strategy 4:

Design Matters!

And Tomorrow …

“Fifteen years ago companies competed on price. Now it’s

quality. Tomorrow it’s design.”Robert Hayes

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

Design as Soul

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul of a

man-made creation.”Steve Jobs

Message: “Great - Cool Stuff” Matters.

Great & Cool Trumps Not-So-Great &

Ho Hum!

Message iMac: “Great Stuff” Takes

Guts!!

The I.D. [International Design] Forty*

Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …

Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …

Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.

* List No. 1, 1999

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

Lady Sensor, Mach3, and …

$70M on developing the OralB CrossAction toothbrush

23 patents, including 6 for the packaging

Source: www.ecompany.com [06.00]

http://www.ecompany.com/



Message:“Services” are Not Intangible!

You “give off” hundreds of design cues … daily!

YOU ARE A DESIGNER!

T.T.D./“Beauty Contest!”

1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim

form.2. Rate it on a 1 to 10 scale

(1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity.

3. Repeat … every 15 days.

Design =

“There are three basic principles behind any well-

designed product: truth, humanity, and

simplicity.”Sohrab Vossoughi,

Ziba Design

Design =

SIMPLICITY … HONESTY … ACCESSIBILITY …

ENJOYMENTJonathan Ive (iMac)

“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under fire,

Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

T.T.D./Design “Awareness”!

STEP No. 1: NOTEBOOK![Start recording the awesome

and the awful.]

“Sometimes I have episodes of wild fury in rental cars. It’s not road

rage. It’s more like design rage.”

Susan Casey, www.ecompany.com


Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK

PHONE. Major Reward!

Brand Outside

Strategy 5:

It’s the Experience!

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride

through small towns and have people be afraid of him.”Harley exec, quoted in Results-based

Leadership

“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

T.T.D.

WHAT’S THE [your] PLOT?

PlotWilliams Sonoma = 7 [was 10]

Crate & Barrel = 8Sharper Image = 9+

Smith & Hawken = 8+Garnet Hill = 9

L.L. Bean = 5 [was 9+]Land’s End = 7+

Colonial Williamsburg = ?

“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct.

Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a

rolling wireless portal on wheels, connecting you to your kitchen, your bank,

your kids, your office.”

Business 2.0, “Four Wheel Drive,” 08.22.00

Brand Outside

Strategy 6:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

$4.8T > Japan

9/27.5/3.6T > Germany

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Yeowl!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*

[* No shit!]

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

[“Men seem like loose cannons. Men always move faster through a store’s

aisles. Men spend less time looking. They usually don’t like asking where things are.

You’ll see a man move impatiently through a store to the section he wants,

pick something up, and then, almost abruptly he’s ready to buy. … For a

man, ignoring the price tag is almost a sign of virility.”

Paco Underhill, Why We Buy* (*Buy this book!)]

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

“Women Beat Men at Art of Investing”Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of

stocks more often; women choose carefully and hold on for the long term)

Marketing to Women: Help Them Save Time!

80% … work86% … cook

58% … run errands with kids38% … take child to school

21% … go to the gym21% … take outside classes

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked,

‘How was school today?’ a girl usually tells her mother every

detail of what happened, while a boy might grunt, ‘Fine.’ ”

EVEolution

Weight Watchers International “Model”

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

The New New Jiffy Lube

“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the

female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation

required’ experience.”

New JL: “Control over her environment. Comfort in the service setting. Trust that her car

is being serviced properly. Respect for her intelligence and ability.”

EVEolution

Q: Why do guys like pagers?

A1: Sense of importance [Pager Dude]

A2: Cubicle Slaves’ replacement for “real guys” tool belts

Q: Why do women like pagers?

A: Get the news A.S.A.P. if her child is in the Nurse’s Office

Q: Why do women hate pagers?

A: They find nothing romantic about wearing a Stetson wrench or Stanley hammer attached to their waist! [Note

the pager’s clip-on device … guys ]

Not!!

“Year of the Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“What kind of car does Mommy want?”

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

Psssst! Wanna see my “porn”

collection?

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

“If we are single, they say we couldn’t catch a man. If we are

married, they say we are neglecting him. If we are divorced,

they say we couldn’t keep him. If we are widowed, they say we

killed him.”

Kathleen Brown, on the joys of female political candidacy

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. [PLEASE: THINK ABOUT IT!]

Not a Morality Play!

“It is critical that we all understand that IBM is not marketing to women

entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge

opportunity.”

Cherie Piebes

Speaking of Enormous

[Missed] [Huge] Opportunities ...

74/55

“At each stage of their lives, the needs and desires of the baby

boomers have become the dominant concerns of American business and popular culture. If you can anticipate

the movement of the baby-boom generation’s life-span migration, you

can see the future.”Ken Dychtwald, Age Wave

Aging/“Elderly”

2X growth rate$$$$$$$$$$$$

“I’m in charge!”

Good source: Ken Dychtwald, Age Wave

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!




S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-

Determination!S8: Brand Power & Summary!

Brand Outside

Strategy 7:Embracing an

Age of Self-Determination

“We are in a

brawl with no rules.”

Paul Allaire

SO … WE’VE GOTTA MAKE

OUR OWN RULES!

Emerson’s Back … with a vengeance! It’s scary! It’s cool!

The Individual

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

The Work

Enter …

The WOW Project!*

*The Project50

Ann Richards’ Dogma

Show up!

Know your story!

Put yourself at risk every day!

The Organization:

Seller’s [Talent] Market

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An

outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We

used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can –

and must – leverage the younger generation very early in their careers”


The Market: Fighting

Sameness with Distinction

“The ‘surplus society’ has a surplus of similar companies, employing similar

people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.”


Web World: POWER TO

THE PEOPLE

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“Imagine a world where a citizen could search the globe to

assemble “my government,” the ultimate in customized,

customer-centric services. Health care from the Netherlands, business incorporation in

Malaysia …”

Don Tapscott

Women Get Respect … and

Take Charge

$4.8T > Japan

9/27.5/3.6T > Germany

The Elderly Get Respect … and

Take Charge

Aging/“Elderly”

2X growth rate$$$$$$$$$$$$

“I’m in charge!”

Good source: Ken Dychtwald, Age Wave

Our Biggest Industry: The Patient Gets

Respect … and Takes Charge

“Partner for Good Health”

vs.

“Savior for the Sick”

Source: NPR/VPR 08.15.00

“Online Medical Records Seen Empowering

Patients”

Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K

patients @ CareGroup

1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”

YES, NURSE. ME GOOD PUPPY DOG.

1995: “HMO will take care of you.”

BULLSHIT.

2005: “I will take care of me. I’d like your expert help.”

The Poor Get Respect

Grameen Bank/Bangladesh

“It’s not people who aren’t credit-worthy. It’s banks that aren’t

people worthy.”$2.3B to 2.3M [typical 1st loan: $15.]

98% recovery rate [94% to women!]

1/3rd out of poverty; 1/3rd up to non-poverty threshold

Muhammad Yunus, Banker to the Poor

“The Grameen loan is not simply cash. It

becomes a kind of ticket to self-discovery and

self-exploration.”

Muhammad Yunus

Self-Determination Redux

Micropower (fuel cells) …Microgrids …

“Virtual Utilities”

Source: The Economist (08.2000)

Sooooo …

Is your strategy centered around customer-client empowerment & self-

determination? Hint: This means letting go

of traditional sources of power!

Brand Outside

Strategy 8 & Summary:

BRAND POWER!

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take

up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology.

Stories create the emotional context people need to locate themselves in a larger experience.”

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.

Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions

to how we work with others. Companies will thrive on the basis of their stories and

myths. Companies will need to understand that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Brand = You Must Care!

“Success means never letting the competition define you. Instead you have to define

yourself based on a point of view you care deeply

about.”

Tom Chappell, Tom’s of Maine

Brand = Special = Passion = Plot =

Compelling Mythology = Cause = Connection = Heart

Rules of “Radical Marketing”

Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!

Celebrate Craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

T.T.D.: “How can I know what I think till I see what I say”*

Exercise : Write copy for a bookmark! (Etc.)

*Graham Wallas, The Art of Thought

What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and

you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded

sub-$200 watch market, they made it into a brand name, named after the most

irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they

can do it, we can do it.’ ”

Barry Gibbons

“Salt is salt is salt. Right? Not when it

comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to

dominate the U.S. salt market even though it charges more for a product that is

demonstrably the same as many other products

on the shelf.”

Tom Asaker, Humanfactor Marketing

Brand Outside

Reprise

Lead the Customer: Why Tough

Guts!Failures!

Re-invention via ecommerce: Why Tough

Total commitment to total enterprise [and supply

chain] reinvention!

Systems Integration: Why Tough

Completely new view of what a “product” is.

Design: Why Tough

True-believer-dom-shipEncompassing/Cultural

Ing-ing/Experience: Why Tough

Total Reorientation

Women’s Market: Why Tough

EncompassingAttitude

CULTURAL!

Self-Determination: Why Tough

Cede Control

Brand Power: Why Tough

Way of LifeForever!

Passion Rules!Touches Everything!It Am Me [Personal!]

Message :

Not for the Faint of Heart!*

*Weenies need not apply

Brand Leadership

Passion Rules!

“Leadership is a performance. You have to be conscious of your behavior, because everybody else is.”

Carly Fiorina

“It is necessary for the President to be the

nation’s No. 1 actor.”FDR

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

“A leader is a dealer in hope.”

Napoleon

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti

distinct or … extinct tom peters seminar2000 lessons in leadership orlando 21september2000

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