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Tom Peters Seminar2001
Rollercoaster Days:
Learning to … Rock & Roll!
06.19.2001
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More at … tompeters.comSlides from this seminar;
Master Presentation, for in-depth; annotated Special Presentations
[Women Rule!, Design!, etc.].“Cool Friends” (referenced in seminar).
Discussions re this stuff.Calendar of events.
Lavender text in this file is a link.
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“There will be more confusion in the business world in the next decade than in any decade in history.
And the current pace of change will only accelerate.”
Steve Case
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<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift
1800s: > prior 900 years1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th
century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture
in the fabric of human history”)
Ray Kurzweil, talk april2001
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Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the
Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies that Are Built to Last Underperform the
Market
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“Good management was the most powerful reason [leading firms] failed to stay atop
their industries. Precisely because these firms listened to their customers, invested aggressively
in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied
market trends and systematically allocated investment capital to innovations that promised
the best returns, they lost their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
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“We are in a
brawl with no rules.”
Paul Allaire
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S.A.V.
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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!)
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Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
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Structure
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Forces @ Work I
The Destruction Imperative!
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Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
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“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
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“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
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“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
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Lessons from the Bees!
“Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into
smaller colonies which can grow value faster. What the bees are telling us is that the corporate
world has got it all wrong.”David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
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“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)
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Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a romantic notion. Large companies are
incapable of ongoing innovation, of ongoing flexibility. Increasingly, successful businesses will be
ephemeral. They will be built to yield something of value – and once that
value has been exhausted, they will vanish.”Fast Company (03-00)
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The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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The [New] Ge Way
DYB.com
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Brand Inside
Brand Org: Lean, Linked,
Internet-driven, Virtual
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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)
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White Collar
Revolution!
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
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“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
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Automation+
75% of what we do: 40 “expert” decision rules!
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IBM’s Project eLiza!
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The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
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“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
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“Don’t own nothin’ if you can help it. If you can, rent your
shoes.”F.G.
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Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
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So what will be the Basic Building
Block of the New Org?
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Every job done in W.C.W. is
also done “outside”
…for profit!
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Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
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11 September 2000
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
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[“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
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HP … Sun … GE … IBM … UPS … UTC …
General Mills … Springs … Anheuser-Busch …
Carpet One … Etc. … Etc.
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“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. Sites to 6,000 NA dealers)
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“ ‘Architecture’ is becoming a commodity.
Winners will be ‘Turnkey Facilities Management’
providers.”SMPS Exec
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eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
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100% goes on the Web.
Non-awesome is outsourced.
Centers of Excellence are leveraged to the hilt!
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Maybe one [or more] of your “PSFs” becomes the tail that wags the
dog called Market Cap????? [E.g.: engineering-
IS-logistics-customer service]
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The Raw Material …
The WOW Project!
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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“Learn not to be careful.”
Photographer Diane Arbus to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
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Brand Inside
Brand You: Distinct …
or Extinct
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“New Economy changes how
firms treat layoffs”
Headline, USA Today (03.19.2001)
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“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
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Minimum New Work SurvivalSkillsKit2001
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
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“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
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Invent. Reinvent. Repeat.
Source: HP banner ad
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Brand Inside
Brand Talent: The Great War for Talent
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The Case
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“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, CEO, Enron
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The Talent Ten
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1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
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From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
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Model 24/7: Sports Franchise GM
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33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy
Lasorda—P,26 games. Sparky Anderson—1 season.
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2. Greatness
Only The Best!
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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)
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3. Performance
Up or out!
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“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.”
Ed Michaels, War for Talent (05.17.00)
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Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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4. Pay
Fork Over!
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“Top performing companies are two to four times more likely
than the rest to pay what it takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
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So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,
$3-4M per year. Pay: $135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for Talent, re Georgia-Pacific
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What gets measured gets done. What gets
paid for gets done more. What gets paid
a lot for gets done a lot more.
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5. Youth
Grovel Before the Young!
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“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.”
Ed Michaels, War for Talent (05.17.00)
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Enron
COO: Louise Kitchen, F, 29; created
EnronOnline as “Skunkworks”
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6. Diversity
Mess Rules!
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“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
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7. Women
Born to Lead!
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“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
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The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
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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
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Women’s Strengths: Link [rather than rank] workers; favor interactive-collaborative
leadership style [empowerment > top-down decision making]; sustain fruitful collaborations;
comfortable with sharing information; see redistribution of power as victory, not surrender;
favor multi-dimensional feedback; value interpersonal & technical skills, group &
individual contributions equally; readily accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate cultural diversity
Source: Judy B. Rosener, America’s Competitive Secret
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“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
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“Investors are looking more and more for a relationship with their
financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills
than are men.”
Hardwick Simmons, CEO, Prudential Securities
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“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
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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)
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Okay, you think I’ve gone tooooo far.
How about this: DO ANY OF YOU SUFFER
FROM TOO MUCH TALENT?
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63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
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8. Weird
The Cracked Ones Let in the Light!
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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
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Axiom: Never hire anyone without an aberration in their
background!
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“Are there enough weird people in
the lab these days?”V.Chmn., pharmaceutical house, to a lab director (06.01)
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9. Opportunity
Make It an Adventure!
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“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”
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“H.R.” to “H.E.D.” ???
Human
Enablement
Department
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10. Leading Genius
We are all unique!
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Beware Lurking HR Types … One size
NEVER fits all. One size fits one. Period.
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48 Players = 48 Projects =
48 different success measures
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ObsessionGreatness
PerformancePay
Youth DiversityWomenWeird
OpportunityLeading Genius
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MantraM3
Talent = Brand
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What’s your company’s …
EVP?Employee Value Proposition, per Ed Michaels et al., The War for Talent
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EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
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HR Folks: YOU – not
“marketing” - “OWN” THE “BRAND PROMISE”!
(If you wish.)
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Titles!
Manager HRIS to Manager Human Capital
Assets or Manager Employee Marketing*
*IHRIM.link (2-3.2001)
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Brand Inside
Brand Action:Getting Started … a
Personal Perspective
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The following slide begins the “Boss-Free Implementation of
Stuff That Matters” Section. The slides in this section are heavily
annotated.
Use Normal or Notes Page View to access the notes.
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Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
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World’s Biggest Waste …
Selling “Up”
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THE IDEA: Model F4
Find a Fellow
Freak Faraway
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Heart of the Matter
F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.
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THE NUGGET
Do Something. Do Anything.
Get Going.Now.
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Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
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Is It …
“The Oh-Hell-I-Wish-It-Were-Over Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our Incredible Staff”
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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?
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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!
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THE SOFT STUFF
Connect!
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Message: It’s Community
Organizing, stupid!
See: Saul Alinsky’s Rules for Radicals
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Message to “scientists”: It AIN’T about the science. It’s
NEVER about the science. It’s ALWAYS
about the PASSION for the IDEA.
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Politics Rules!
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Project Team Golden Leadership Triangle
(1) Champion-Maniac. (2) Implementer-Pol.
(3) Schedule & Budgets Fanatic.
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BOTTOM LINE
The Enemy!
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Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001
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!
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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
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Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
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Brand InsideReprise:
THINK WEIRD: The High Standard
Deviation Enterprise
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Saviors-in-Waiting
Disgruntled CustomersFringe CompetitorsRogue Employees
Edge SuppliersWayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue
Employees
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“Corporate consciousness is predictably centered around the
mainstream. The best customers, biggest competitors, and model
employees are almost invariably the focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
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Button-down Org H.S.D.E. .
• Acquire for market share• Suck up to biggest customers• Pursue “strategic vendors”• Bigger is better• Accept assignments as given• Hire 4.0s from “top schools”• Promote when they’ve “paid
their dues”• Appoint a “prestigious” board
• Hang out with my pals• R.A.F.• Be “professional” at all
times/Honor thine elders
• Acquire for innovation• Partner with cool customers• Seek out pioneering vendors• Break it up … to refresh• Reframe all tasks to innovate• Hire “intriguing,” wherever• Promote tomorrow if the work
product is weird and WOW• Appoint an interesting,
headstrong board• Take a freak to lunch today• F.F.F.• Stay loose, stay cool/The hell
with thine elders
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“But don’t we need some
grout between the tiles?”
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Forces @ Work II
The Sameness Trap
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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
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“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
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“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
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“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
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10X/10X
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Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
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OVERVIEW
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Cisco!
90% of $20B (=$50M/day)Annual savings in service
and support from customer self-management: $550M
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1400X*
*Enron/Price a structured trade: 30 per day (’99); 30 per minute (’00)
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COMMUNITY SERVICES!
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Secret Cisco: Community!
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)
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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
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Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
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“The Age of the
Never Satisfied Customer”
Regis McKenna
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RADICAL STRATEGIES
REQUIRED
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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
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Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
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Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
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“Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the
number of people they employ … all of that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
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A DREAMER’S MEDIUM!
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“There’s 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
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I’net …
… allows you to dream dreams
you could never have dreamed
before!
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“Customer Service” is DEAD.“One-to-One” is DEAD.
Welcome to: ????[??? = We live together in seamless-
responsive harmony with all Members of the Value Chain. We Create together. We Fulfill together. We Learn together. We
Adjust together. All old categories – which imply separation and linearity and
hierarchy and do-it-to-themism – must die.]
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Brand Outside
Strategy 1A:Healthcare et al.:
Embracing ane-Led Age of
Self-Determination
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“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.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
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“HR Employee Self-Service/
ESS”John Pask/IHRIM
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B2E*
*Business to Employee (IHRIM.link)
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Impact #1(?):
Healthcare
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HealthCare2001
Consumerism X Demographics X
IS/Internet X Info Consolidators X Genetics & Devices
= YIKES!
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1. Consumerism (Patient-centric Healthcare)
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“A seismic shift is underway in healthcare. The Internet is
delivering vast knowledge and new choices to consumers—raising their
expectations and, in many cases, handing them the controls.
[Healthcare] consumers are driving radical, fundamental change.”
Deloitte Research, “Winning the Loyalty of the eHealth Consumer”
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Consumer Imperatives
ChoiceControl (Self-care, Self-management)
Shared Medical Decision-makingCustomer Service
InformationBranding
Source: Institute for the Future
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“No one currently ‘owns’ the eHealth Consumer. It’s an
open playing field.”Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
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“We find that eHealth consumers are willing to
pay – and even switch health plans – for the
services they most want.”Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
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“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR 08.15.00
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2. Demographics: The BOOMERS Reach 55!
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Boomer World
“From jogging to plastic surgery, from vegetarian diets
to Viagra, they are fighting to preserve their youth and
defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
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3. The IS/Web REVOLUTION
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Info Revolution
Consumerism (research, consultation, B2C, etc.)
Clinical Info Systems (guidelines and outcome measurement, etc.)
100% Web-based (internal) SystemsElectronic Medical Records
Patient-physician email-consultationTelehealth-Remote Monitoring
(biosensors, home testing, etc.)
Telemedicine (consultation, invasive treatment, “global medical village,” etc.)
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“We’re in the Internet age, and the average
patient can’t email their doctor.”
Donald Berwick, Harvard Med School
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Henry Lowe, U. of Pitt. School of
Medicine: “Broadband, Internet-based,
‘multimedia’ electronic medical
records”
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“Without being disrespectful, I consider the U.S. healthcare
delivery system the largest cottage industry in the world. There are
virtually no performance measurements and no
standards. Trying to measure performance … is the next revolution in healthcare.”
Richard Huber, former CEO, Aetna
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“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good intentions and good training lead automatically
to good results. Providers remain more comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the demands of the information age.”
Michael Millenson, Demanding Medical Excellence
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“A healthcare delivery system characterized by idiosyncratic
and often ill-informed judgments must be restructured
according to evidence-based medical practice.”Demanding Medical Excellence: Doctors and
Accountability in the Information Age, Michael Millenson
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“As unsettling as the prevalence of inappropriate care is the enormous amount of
what can only be called ignorant care. A surprising 85% of everyday medical
treatments have never been scientifically validated. … For instance, when family
practitioners in Washington were queried about treating a simple urinary tract infection, 82
physicians came up with an extraordinary 137 strategies.”
Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson
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CDC 1998: 90,000 killed and 2,000,000 injured
from nosocomial [hospital-caused] drug
errors & infections
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“Patient by patient, problem by problem – drug reactions, hospital
caused infections – Salt Lake City’s LDS Hospital has attacked treatment-
caused injuries and deaths. One of the secrets of LDS’s success is a custom-
built clinical computer system that may serve as a national model for how
to save patient lives.”Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
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4. The “Consolidators”
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WebMD (or heirs
& assigns)
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“America has twice as many hospitals and physicians as
it needs.”Med Inc., Sandy Lutz, Woodrin Grossman
& John Bigalke
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5. Genetics & Devices
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Genetics & Devices
Pharmacogenomics (“mini”busters, rational drug design, personalized medicine,
gene therapy, vaccines--20% to 50% prescriptions not work)
Neural Stem Cells
Minimally invasive surgeryAdvanced imaging
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Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-
guided munitions, and it marks a sea change for the industry. The implications for existing
business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences, PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
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“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work well for about half ther patients for whom they
are prescribed, and experts believe genetic differences are part of the reason. The
technology for genetic testing is now in use,. But the technique threatens to be so disruptive to the
business of big drug companies—it could limit the market for some of their blockbuster
products—that many of them are resisting its widespread use.”
The Wall Street Journal (06.18.2001)
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Genetics & Devices
Pharmacogenomics (“mini”busters, rational drug design, personalized medicine,
gene therapy, vaccines--20% to 50% prescriptions not work)
Neural Stem Cells
Minimally invasive surgeryAdvanced imaging
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“There is no question in my mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-
bypass surgery
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Brand Outside
Strategy 2A:
Women Rule!
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?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Consumer Electronics … 51%
Cars … 60% (90%)All consumer purchases … 83%
Bank Account … 89%Health Care … 80%
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????
80%
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Riding Lawnmowers
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2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
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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
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$4.8T > Japan
9M/27.5M/$3.6T > Germany
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New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
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1874?
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1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
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Yeow!
1970 … 1%
2002 … 50%
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OPPORTUNITY
NO. 1!*[* No shit!]
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Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
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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.”
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“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!)
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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
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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
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“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)
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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
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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
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Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
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EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
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“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
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“Women speak and hear a language of connection and intimacy, and men
speak and hear a language of status and independence. Men communicate to obtain information, establish their
status, and show independence. Women communicate to create
relationships, encourage interaction, and exchange feelings.”
Judy Rosener, America’s Competitive Secret
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[“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female
friends. When days go by without that connection, I feel
like a radio playing in an empty room.”
Anna Quindlen]
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What If …
“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
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“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
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Not!!
“Year of the Woman”
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Enterprise Reinvention!
RecruitingHiring/Rewarding/Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
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“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
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THIS JUST MIGHT BE THE BIGGEST
“THING” IN THIS SEMINAR.
[PLEASE: THINK ABOUT IT!]
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Psssst! Wanna see my “porn” collection?
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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!”
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STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
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“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
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Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ??(272?)
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0
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Brand Outside
Strategy 2B:
Welcome to “Old World”!
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“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
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Subject: Marketers & Stupidity
“It’s 18-44, stupid!”
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Subject: Marketers & Stupidity
Or is it: “18-44 is stupid,
stupid!”
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
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[ Member Growth: 1987 – 1997
18 – 34: 26%35 – 49: 63%
50+: 118%Source: IHRSA]
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Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
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50+
$7T wealth (70%)/$2T annual income50% all discretionary spending
79% own homes/40M credit card users41% new cars/48% luxury
$610B healthcare spending/74% prescription drugs
5% of advertising targetsKen Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
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“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
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Message: WHAT AN [overlooked] OPPORTUNITY!
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Brand Outside
Strategy 2C:
Welcome to “Green World”!
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And #3: GREEN?????: 50% to 36%: Protect Environment >
Economic Growth.
58% to 34%: Protect Plants & Animals > Preserve Private
Property Rights.
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E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M,59%; F,37%
Pay more for non-altered: M,35%; F, 47%
Source: www.pulse.org & USA Today
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No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
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Brand Outside
Strategy 3A:
Design Matters!
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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
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“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
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Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
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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
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Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
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Design Transforms even the [Biggest] Corporations!
TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”
(Advertising Age)
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Design “is” … WHAT & WHY I LOVE.
LOVE.
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I LOVE my ZYLISS Garlic Peeler!
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Design “is” … WHY I
GET MAD. MAD.
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Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK
PHONE. Major Reward!
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Design is never neutral.
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Hypothesis: DESIGN is the principal difference
between love and hate!
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THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what
I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has
become a professional obsession. I – SIMPLY – BELIEVE THAT DESIGN PER SE IS
THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A
PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of
whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” …
that damn few companies put – consistently – on the front burner.
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Message:“Services” are Not Intangible!
You “give off” hundreds of design cues … daily!
YOU ARE A DESIGNER!
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First Steps: “Beauty Contest”!
• Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form
• Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on three dimensions: Beauty, Grace, Clarity
• Re-invent!• Repeat, with a new selection, every 15
working days.
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Compare 10 order forms or data fields at a Web site.
Save great and awful junk mail.
Go on a <$10 shopping spree.
Pay attention to signage. (And instruction manuals.)
Start a notebook. NOW.
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Design Rules! [Literally]
Palm Beach County’s U.C.B.* [*Utterly Confusing Ballot]
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Brand Outside
Strategy 3B:
It’s the Experience!
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“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
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“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
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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
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
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Message: “Experience” is the
“Last 80%”“Experience” applies to
all work!
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HP Revisited
PWC Consultants lead Business Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service Economy”)
Terrific Servers (“Goods Economy”)
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“Experience”: Home to [tomorrow’s]
Market Cap!
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Brand Outside
Strategy 4:
BRAND POWER!
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“WHO ARE YOU [these days] ?”
TP to Client
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“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
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“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
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“Most executives have no idea how to add value to a market in the metaphysical
world. But that is what the market will cry outt for in the future. There is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]
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“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25
words.) (2) List three ways in which we are UNIQUE … to our Clients.
(3) Who are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/”them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:
Try ’em on a skeptical Client!
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1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
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2 Questions
“How likely are you to purchase this new product or service?” (95%
to 100% weighting by execs)
“How unique is this new product or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain
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Message: REAL Branding is personal. REAL Branding is integrity. REAL
Branding is consistency & freshness. REAL Branding is the answer to WHO
ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments,
all hands affair.
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“WHO ARE WE?”
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WHAT’S OUR
STORY?
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“EXACTLY HOW ARE WE DRAMATICLY DIFFERENT?”
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“ WHY DOES IT MATTER TO
THE CLIENT?”
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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DIFFERENCE TO THE CLIENT ”
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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“I don’t know.”
Karl Weick
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“The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame
where the old tools of logic may be its undoing rather than its salvation. To drop these tools is
not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the
unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the
form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in
the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick
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BossMessage2001: YOU CAN’T KEEP UP!
YOU DON’T HAVE THE ANSWERS!
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,
Engagement, Commitment, Great Causes & Determination to Make a
Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
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#49
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“Leadership is the PROCESS of
ENGAGING PEOPLE in CREATING a LEGACY
of EXCELLENCE.”
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“Hire smart – go bonkers – have grace
– make mistakes – love technology –
start all over again.”
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“LEADERS need to be the rock of
Gibraltar on roller blades”
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Brand Leadership
Passion Rules!
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“Create a Cause, not a ‘business.’
”Gary Hamel, Fortune (06.00), on re-inventing a
company (Exemplar #1: Charles Schwab)
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“You must be the change you wish to see in the world.”
Gandhi
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“I’d rather regret the things I have
done than the things I have not.”
Lucille Ball
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“If you ask me what I have come to do in
this world, I who am an artist, I will reply, I
am here to live my life out loud.”
Emile Zola
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“Let’s make a dent in the universe.”
Steve Jobs