excellence 2008: value- added by design excellence 2008: value- added by design tom peters/for the...

Excellence Excellence 2008: value-2008: value-

added By added By DesignDesign

Tom Peters/for the KoreaTom Peters/for the Korea Design Forum 2008Design Forum 2008

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part onepart one

56 56 RandomRandom Thoughts on Thoughts on

DesignDesignTom Peters/for the KoreaTom Peters/for the Korea

Design Forum 2008Design Forum 2008

5656 Random Thoughts on Design Random Thoughts on Design****“Great things” are more valuable than “Great things” are more valuable than not-so-great things.not-so-great things.****“It” is everything.“It” is everything.****Everybody’s doin’ it.Everybody’s doin’ it.****If “everybody’s doin’ it,” then how do we If “everybody’s doin’ it,” then how do we do itdo it differently-sustainably?differently-sustainably?****Everybody will do “it” differently. (Sorta—Everybody will do “it” differently. (Sorta— “ “design zealots” in Japan are about the design zealots” in Japan are about the samesame as design zealots in Italy.)as design zealots in Italy.)****“It” works only if it is “a way of life.” “It” works only if it is “a way of life.” (Apple,(Apple, BMW, Cirque du Soleil)BMW, Cirque du Soleil)****Consider my term-of-choice: “Design-Consider my term-of-choice: “Design- mindedness.” (Design-mindedness is mindedness.” (Design-mindedness is an attitude.)an attitude.)****“It” does not work if it is a “program.”“It” does not work if it is a “program.”

****It is not about recruiting a rock star It is not about recruiting a rock star designer—this may be counterproductive,designer—this may be counterproductive, at least at first.at least at first.****“Dreamers with deadlines”—creative & “Dreamers with deadlines”—creative & loose … with deliverables.loose … with deliverables.****It’s already faddish.It’s already faddish.****Don’t try to “engineer it”—there is anDon’t try to “engineer it”—there is an essential “spontaneity” dimension. (SWA)essential “spontaneity” dimension. (SWA)****In the case of goods, it starts with theIn the case of goods, it starts with the vendors and especially includes packagingvendors and especially includes packaging and delivery folks and parking lotand delivery folks and parking lot attendants—think Disney and gum and theattendants—think Disney and gum and the Orlando airport.Orlando airport.

****In the long run, the “Mittelstand” will makeIn the long run, the “Mittelstand” will make the difference!the difference!****Acquiring design firms is tricky.Acquiring design firms is tricky.****There are no “exempts”—“it” applies as There are no “exempts”—“it” applies as much,much, albeit in a different way, in purchasing as in albeit in a different way, in purchasing as in marketing.marketing.****IT IS NOT ABOUT MARKETING! (Except aIT IS NOT ABOUT MARKETING! (Except a little bit.)little bit.)****The entire supply chain must be on board.The entire supply chain must be on board.****As always, “MBWA” rules—embeddingAs always, “MBWA” rules—embedding something new in a culture is a “walk something new in a culture is a “walk around” affair.around” affair.****“It” is about the way every individual “It” is about the way every individual conductsconducts himself or herself. (E.g., hotel housekeeper)himself or herself. (E.g., hotel housekeeper)

****Aesthetics and usability are equallyAesthetics and usability are equally important—with perhaps a slight edge toimportant—with perhaps a slight edge to usability.” (“ ‘It won a prize’ is the ultimateusability.” (“ ‘It won a prize’ is the ultimate criticism”—DN)criticism”—DN)****There is a “bet the farm” element at play—There is a “bet the farm” element at play— Dubai, Apple.Dubai, Apple.****There must be a far higher than normal There must be a far higher than normal dosedose of autonomy—in the end this is about of autonomy—in the end this is about “value-“value- added through creativity.” added through creativity.” ****“It” must show up in the schools by age 5.“It” must show up in the schools by age 5.****“It” becomes the chief organizing principal“It” becomes the chief organizing principal for education.for education.****When it comes to aesthetics, you get most When it comes to aesthetics, you get most ofof “ “it” from the genes you were dealt.it” from the genes you were dealt.

““Every child is Every child is born an artist. born an artist. The trick is to The trick is to

remain an artistremain an artist.”.” —Picasso—Picasso

****Beware of engineers! (Said with affection—Beware of engineers! (Said with affection— I am one.)I am one.)****Beware of MBAs (Said with no affection, Beware of MBAs (Said with no affection, even though I am one.)even though I am one.)****The education bit is less about aestheticsThe education bit is less about aesthetics and more about encouraging individualismand more about encouraging individualism—— to take a risk on design, you must have ato take a risk on design, you must have a burning desire to do things differently. burning desire to do things differently. (Schools—ours, yours, everyone’s—are(Schools—ours, yours, everyone’s—are brilliant at suppressing creativity andbrilliant at suppressing creativity and excessive shows of passion.)excessive shows of passion.)****Capturing “best practice” only goes so far.Capturing “best practice” only goes so far.****“Six Sigma” can be a deadly enemy.“Six Sigma” can be a deadly enemy.

****In “design world”: GenderIn “design world”: Gender differences are … enormous.differences are … enormous.****Women buy stuff, hence Women buy stuff, hence womenwomen must design stuff. (And be verymust design stuff. (And be very amply represented inamply represented in management ranks—for management ranks—for reasonsreasons of profit, not social justice.)of profit, not social justice.)****Think: Women!!!!!!!!!!!!Think: Women!!!!!!!!!!!!****If you are interested in sellingIf you are interested in selling to Europe and the U.S. andto Europe and the U.S. and Japan (etc) then you mustJapan (etc) then you must explicitly (!!!) focus on the explicitly (!!!) focus on the overover 50 market (think “7/13”)50 market (think “7/13”)

****If you are serious, the Chief Design OfficerIf you are serious, the Chief Design Officer (Chief Experience Officer”) must sit at the(Chief Experience Officer”) must sit at the same level as the CFO. So, too the Chief same level as the CFO. So, too the Chief People Officer!!!!People Officer!!!!****“It” must be on every (literally) agenda; in“It” must be on every (literally) agenda; in project reviews of every type it must hold project reviews of every type it must hold itsits own with, say, the budget discussion.own with, say, the budget discussion.****You’ll never be able to explain it to theYou’ll never be able to explain it to the analysts.analysts.****Steve Jobs is lucky—as well as good.Steve Jobs is lucky—as well as good.****Steve Jobs is too abnormal to learn from.Steve Jobs is too abnormal to learn from.****Design competitions at all levels of society-Design competitions at all levels of society- business must be very big deals.business must be very big deals.

****Buy art. (All businesses of all sizes.)Buy art. (All businesses of all sizes.)****In the public sector, it starts at the airport In the public sector, it starts at the airport for foreign visitors especially—an for foreign visitors especially—an experienceexperience that includes traffic, air quality, etc.that includes traffic, air quality, etc.****You can do a lot for 2-cents!You can do a lot for 2-cents!****And don’t ignore with the subway map.And don’t ignore with the subway map.****Or the public toilets.Or the public toilets.****Be merciless about urban trash—spendBe merciless about urban trash—spend yourself poor on this if necessary.yourself poor on this if necessary.****Good design transforms healthcare Good design transforms healthcare facilitiesfacilities (especially hospitals)—and abets healing.(especially hospitals)—and abets healing.****Good design in eldercare facilities extendsGood design in eldercare facilities extends life and enhances quality of life.life and enhances quality of life.

****Small things are often Small things are often (usually?)(usually?) more important than big more important than big things.things.****“Design Is Free” is closer to “Design Is Free” is closer to thethe truth than you would think.truth than you would think.****Throwing money at problems isThrowing money at problems is almost always a dumb thing toalmost always a dumb thing to do—Design Excellence do—Design Excellence included.included.****Training in “service Training in “service excellence”excellence” is often a better “designis often a better “design investment” than capitalinvestment” than capital spending.spending.

****This ain’t limited to global enterprises.This ain’t limited to global enterprises.****The overall quality of small firms equalsThe overall quality of small firms equals (exceeds?) the “value added” by big firms.(exceeds?) the “value added” by big firms.

****Gandhi and Mandela and Churchill and JFKGandhi and Mandela and Churchill and JFK and Reagan and Thatcher and Sarkozy and and Reagan and Thatcher and Sarkozy and Franklin and Washington setFranklin and Washington set the tone to an incredible degree—theirthe tone to an incredible degree—their “ “personal style” was their “brand.” (“It”personal style” was their “brand.” (“It” starts with personal style of the tip-topstarts with personal style of the tip-top leadership team. Sorry to be politicallyleadership team. Sorry to be politically insensitive, but who would give a hootinsensitive, but who would give a hoot about Tibet if it weren’t for the look andabout Tibet if it weren’t for the look and style of the Dalai Lama?) Boss: You’re style of the Dalai Lama?) Boss: You’re eithereither on the “it” boat—or not. on the “it” boat—or not.

part TWOpart TWO

EXCELLENCE. EXCELLENCE.

VALUE ADDED.VALUE ADDED.UP THE LADDER.UP THE LADDER.

4 of 7.4 of 7.Tom Peters for the Tom Peters for the

Korea Design Forum 2008Korea Design Forum 2008

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.the Value-added Ladder.

EXCELLENCE.EXCELLENCE.VALUE-ADDEDVALUE-ADDED

LADDER I, II, III. LADDER I, II, III.

The Value-added Ladder/ The Value-added Ladder/ “BEDROCK” “BEDROCK”

Raw Materials*Raw Materials*

**Farmers and Miners (“Degree”: Weightlifting)Farmers and Miners (“Degree”: Weightlifting)

The Value-added Ladder/ The Value-added Ladder/ THINGSTHINGS

Goods*Goods* Raw MaterialsRaw Materials

**Engineers and Factory Workers (Degree: Engineering)Engineers and Factory Workers (Degree: Engineering)

The Value-added Ladder/TRANSACTIONSTRANSACTIONS

Services*Services*GoodsGoods

Raw Materials Raw Materials

**Clerks (Degree: Process Engineering)Clerks (Degree: Process Engineering)

EXCELLENCE.EXCELLENCE.

VALUE-ADDED LADDER IV.VALUE-ADDED LADDER IV. SOLVE IT. SOLVE IT.

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting How Schlumberger Is Rewriting the Rules of the Energy Game.”:the Rules of the Energy Game.”:

“IPM [Integrat5ed Project “IPM [Integrat5ed Project Management] strays from Management] strays from

[Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

IBMIBMHPHP

SchlumbergerSchlumbergerGE EnergyGE Energy

GE InfrastructureGE InfrastructureUPSUPS

MasterCardMasterCardetc.etc.etc.etc.etc.etc.etc.etc.

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle Blohm, The —Jan Gunnarsson & Olle Blohm, The

Welcoming LeaderWelcoming Leader

HuHuggee:: Customer

SatisfactionSatisfaction versus … Customer

SuccessSuccess

““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success through Customer Success through ImImpplementedlemented

Gamechanging Solutions*Gamechanging Solutions*ServicesServicesGoodsGoods


**Subject-matter Professionals andSubject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organization Effectiveness Experts (Degree: MBA,

Organizational Psychology)Organizational Psychology)


SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.

PSF. PSF.

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)


UpUp



VALUE-ADDED LADDER V.VALUE-ADDED LADDER V. EXPERIENCE IT. EXPERIENCE IT.

““The [The [StarbucksStarbucks] Fix” Is on …] Fix” Is on …

“We have “We have identified a ‘third identified a ‘third place.’place.’ And I really believe And I really believe

that sets us apart. The third place is that sets us apart. The third place is that place that’s not work or home. It’s that place that’s not work or home. It’s

the place our customers come for the place our customers come for refuge.”refuge.” —Nancy Orsolini, District Manager—Nancy Orsolini, District Manager

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

QQ: : “Why did you buy “Why did you buy Jordan’s Furniture?”Jordan’s Furniture?”

AA: : “Jordan’s is “Jordan’s is

spectacular.spectacular. It’s all It’s all showmanship.showmanship.””Source: Warren Buffet interview/Source: Warren Buffet interview/Boston Sunday GlobeBoston Sunday Globe/12.05.04/12.05.04

Experience: “Rebel Lifestyle!”

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

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding Experiences*Experiences*

Customer Success/Implemented Customer Success/Implemented Gamechanging SolutionsGamechanging Solutions

ServicesServicesGoodsGoods


**Theatrical Skills (Degree: Theater Arts)Theatrical Skills (Degree: Theater Arts)

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/ “Exceeded Expectations”

vs.

“Great “Great VacationVacation”/ ”/ “Great “Great ConferenceConference”/”/ “Operation “Operation PersonalPersonal

RenewalRenewal””

CCXXOO**Chief eXperience Officer

First Step (?!)First Step (?!): : Hire a Hire a theater directortheater director, , as a consultant as a consultant

or FTE!or FTE!

““Most executives Most executives have no idea how to have no idea how to

add value to a market add value to a market in the metaphysical in the metaphysical

world.world. But that is what the But that is what the market will cry out for in the market will cry out for in the

future. There is no lack of future. There is no lack of ‘physical’ products to choose ‘physical’ products to choose between.”between.” —Jesper Kunde, —Jesper Kunde, Unique Now ... or NeverUnique Now ... or Never

Extraction & Goods: Extraction & Goods: MaleMale dominance dominance

Services & Services &

Experiences:Experiences: FemaleFemale dominancedominance

<TG<TGWWvs.vs.

>TG>TGRR[Things Gone [Things Gone WRONGWRONG/Things Gone /Things Gone RIGHTRIGHT]]

3M’s Innovation3M’s Innovation Crisis: How Six Crisis: How Six Sigma Almost Sigma Almost

SmotheredSmothered Its Idea Culture Its Idea Culture

Source: Title/Cover Story, Source: Title/Cover Story, BWBW, 0611.07 (, 0611.07 (“What’s remarkable is “What’s remarkable is how fast a culture can be torn apart,”how fast a culture can be torn apart,” 3M lead scientist; “In 3M lead scientist; “In

an innovation economy, [6 Sigma] is no longer a cure all”/ an innovation economy, [6 Sigma] is no longer a cure all”/BWBW))

“Perfection is achieved only by institutions on the

point of collapse.”— C. Northcote Parkinson


UpUp


THE ESSENCDE THE ESSENCDE

OF EXPERIENCES: OF EXPERIENCES: BONUS #1BONUS #1

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

““Women areWomen are the majority the majority

market”market” —Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has developed an index of 115 developed an index of 115

companies poised to benefit companies poised to benefit from women’s increased from women’s increased

purchasing power; purchasing power; over the past over the past decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise

of 13%of 13%.”.” —Economist, April 15

The Perfect Answer

Jill and Jack buy slacks in black…

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

It’s gotta beIt’s gotta be a majority … a majority …

Elizabeth Cady StantonElizabeth Cady Stanton(more or less) (circa 0331.2007)(more or less) (circa 0331.2007)

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”Women Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.

So what exactly is the point of So what exactly is the point of menmen??

THE ESSENCE OF THE ESSENCE OF

EXPERIENCES: EXPERIENCES: BONUS #2BONUS #2

7/17/133

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. . We are the We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are . We are

the the fastest growingfastest growing, the , the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, the most (yes) , the most (yes) ambitiouambitious, the most s, the most

experimental & exploratoryexperimental & exploratory, the most , the most differentdifferent, the , the most most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the , the

most most service & experience obsessedservice & experience obsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) the most vigorous,) the most health health

consciousconscious, the most , the most femalefemale, the most profoundly , the most profoundly important commercial market in the history of the important commercial market in the history of the

world—andworld—and we will be the we will be the Center of Center of yyour universe our universe for the next twentfor the next twentyy-five -five

yyearsears.. We have arrived! We have arrived!

THE ESSENCDE THE ESSENCDE

OF EXPERIENCES: OF EXPERIENCES: BONUS #3BONUS #3

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

#1/10#1/1000

“Best Companies to Work for”/2005

WegmansWegmans

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors

and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

Organizations exist to serve. Organizations exist to serve. Period.Period.Leaders live to serve. Leaders live to serve. Period.Period.

Passionate servant leaders, determined to create a Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domainlegacy of earthshaking transformation in their domain create/must create/must necessarilynecessarily create organizations which create organizations which

are …are … no less than Cathedrals in no less than Cathedrals in which the full and awesome which the full and awesome

power of the Imagination and power of the Imagination and Spirit and native Spirit and native

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashedunleashed … … In passionate pursuit of jointly In passionate pursuit of jointly perceived soaring purposeperceived soaring purpose and personal and and personal and

community and client service Excellence. community and client service Excellence.

Why in Why in the the World did World did youyou go to go to SiberiaSiberia??

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP


UpUp


EXCELLENCE. EXCELLENCE.

SOUL I.SOUL I.DESIGN.DESIGN.

All EAll Eqqual ual ExceExcepptt … …

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

technology, price, performance and technology, price, performance and

features.features. DesiDesiggn is the onln is the onlyy thinthingg that that

differentiates one differentiates one pproduct from another roduct from another in the marketin the marketpplacelace.”.”

—Norio—Norio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

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

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

the meaning of design.the meaning of design. Design Design is the is the fundamentalfundamental

soulsoul of a man- of a man-made creation.”made creation.” ——

Steve JobsSteve Jobs

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran

““With its carefully conceived mix of colors and textures, With its carefully conceived mix of colors and textures,

aromas and music,aromas and music, StarbucksStarbucks is more is more indicative of our era than the iMac. It is to the Age of indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass ProductionConvenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the quality of enhance the quality of everything the customers see, everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writes writes

CEO Howard Schultz.”CEO Howard Schultz.” -—Virginia Postrel, -—Virginia Postrel, The Substance of Style: How the Rise of AestheticThe Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and ConsciousnessValue Is Remaking Commerce, Culture and Consciousness

““Having spent a century or more focused on other goalsHaving spent a century or more focused on other goals—solving manufacturing problems, lowering costs, —solving manufacturing problems, lowering costs,

making goods and services widely available, increasing making goods and services widely available, increasing convenience, saving energy—we are increasingly convenience, saving energy—we are increasingly

engaged in making our world special. More people in engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and from the way their persons, places and things look and

feel.feel. Whenever we have Whenever we have the chance, we’re the chance, we’re addinaddingg sensor sensoryy, ,

emotional aemotional appppeal to eal to ordinarordinaryy function function.”.” — Virginia — Virginia

Postrel, Postrel, The Substance of Style: How the Rise of Aesthetic The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and ConsciousnessValue Is Remaking Commerce, Culture, and Consciousness

CCDDOO**Chief DesignDesign Officer

““Business people Business people don’t need to don’t need to ‘understand ‘understand

designers better.’ designers better.’ Businesspeople Businesspeople

need to need to bebe designers.”designers.” —Roger Martin, —Roger Martin,

Dean, Rotman Management School,Dean, Rotman Management School,University of TorontoUniversity of Toronto

Message:Message: Men Men

cannotcannot design design

for women’s needs.for women’s needs. PeriodPeriod..

““Perhaps the macho Perhaps the macho look can be interestinglook can be interesting

… if you want to fight … if you want to fight dinosaurs. But now to dinosaurs. But now to

survive you need survive you need intelligence, not power and intelligence, not power and

aggression. Modern aggression. Modern intelligence means intuitionintelligence means intuition

—it’s female—it’s female..””

Source: Source: Philippe StarckPhilippe Starck, Harvard Design Magazine, Harvard Design Magazine

Bottom Line.

Design “is” … Design “is” … WHAT & WHY I WHAT & WHY I

LOVE. LOVE.

LOVELOVE..

All Time No.1 (TP)

ZiplocsZiplocs

Design “is” … Design “is” … WHY I GET MAD. WHY I GET MAD.

MADMAD..

Wanted: THE THE DESIGNER DESIGNER

OF MY OF MY KRUPPS/ KRUPPS/

CUISINART CUISINART COFFEE-COFFEE-MAKER. MAKER. Major Major

Reward!Reward!

Design is …Design is …

never never neutralneutral..

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

and and hate!*hate!**Not “like” and “dislike”*Not “like” and “dislike”

Better By DesignBetter By Design

The The Design49Design49

Tom PetersTom PetersAuckland/30March2005Auckland/30March2005

Better By Design: Tom’s Design49Better By Design: Tom’s Design49

1. There are only 2 rules.1. There are only 2 rules.2. Rule #1: 2. Rule #1: You can’t beat Wal*Mart on price or China on cost.You can’t beat Wal*Mart on price or China on cost.3. Rule #2: See Rule #1.3. Rule #2: See Rule #1.4. Econ Survival = Innovate and Sprint Up the Value-added4. Econ Survival = Innovate and Sprint Up the Value-addedChain … Chain … OR DIEOR DIE!!5. 5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE “SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.“SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.6. Design as Soul-Core Competence #1 is a 6. Design as Soul-Core Competence #1 is a “cultural imperative,”“cultural imperative,” not not a “programmatic” or “process” ora “programmatic” or “process” or“throw $$$ at it” issue!“throw $$$ at it” issue!7. CDEs 7. CDEs (Culturally Design-driven Enterprises)(Culturally Design-driven Enterprises) use Design- use Design-Experiences-Dream Merchantry-Lovemarks as the LeadExperiences-Dream Merchantry-Lovemarks as the LeadDog(s) in the OlympianInnovation-“Strategy”-ValueDog(s) in the OlympianInnovation-“Strategy”-ValueProposition Struggle.Proposition Struggle. 8. “Dream Merchant” makes as much sense for IBM or GE or UPS as 8. “Dream Merchant” makes as much sense for IBM or GE or UPS as for Starbucks!for Starbucks!

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Experiences Spellbinding Experiences viavia

“Soul” Through Design*“Soul” Through Design*

**Customer Success/Customer Success/Implemented Gamechanging SolutionsImplemented Gamechanging Solutions



**Blending Beauty, Usability, Theatricality (Degree: MFA/Blending Beauty, Usability, Theatricality (Degree: MFA/Master of Fine Arts, “D-school,” Cultural Anthropology)Master of Fine Arts, “D-school,” Cultural Anthropology)


SYSTEMS. SYSTEMS. DESIGN. DESIGN. K.I.S.S.K.I.S.S.

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

Minutes Minutes (!!!!)(!!!!)

90K in U.S.A. 90K in U.S.A. ICUsICUs on any on any given day; given day; 178178 steps/day steps/day

in ICU. in ICU.

50%50% stays result stays result

in “serious complication”in “serious complication”

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

****Peter PronovostPeter Pronovost, Johns Hopkins,, Johns Hopkins, 2001 2001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure**Nurses/permission to stop procedure if doc, other not following checklist if doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0%

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

First Steps: “Beauty Contest”!

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

2.2. Rate the selected doc on a scale of 1 to Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions:10 = Work of Art] on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

Beauty Beauty Grace Grace

Clarity Clarity SimplicitySimplicity

The Value-added Ladder/The Value-added Ladder/ MEMORABLE CONNECTION MEMORABLE CONNECTION

COURTESY THE “ENTIRE SUPPLY CHAIN”COURTESY THE “ENTIRE SUPPLY CHAIN”

WorkWork as Art* as Art*Customer Success/Customer Success/

Implemented Gamechanging SolutionsImplemented Gamechanging SolutionsServicesServicesGoodsGoods


**Artists and Process Engineers working in tandem Artists and Process Engineers working in tandem


VALUE-ADDED LADDER VI.VALUE-ADDED LADDER VI.

DREAM IT.DREAM IT.

Furniture vs. DreamsFurniture vs. Dreams

“We do not sell ‘furniture’ at “We do not sell ‘furniture’ at

Domain.Domain. We sell We sell dreamsdreams.. This is This is

accomplished by addressing the half-accomplished by addressing the half-formed needs in our customers’ formed needs in our customers’

heads. By uncovering these needs, heads. By uncovering these needs,

we, in essence, fill in the blanks.we, in essence, fill in the blanks. We We convert ‘needs’ into convert ‘needs’ into

‘dreams.’ Sales are the ‘dreams.’ Sales are the inevitable resultinevitable result.”.” — Judy George, — Judy George,

Domain Home FashionsDomain Home Fashions

““The sun is setting on the Information Society—even The sun is setting on the Information Society—even before we have fully adjusted to its demands as before we have fully adjusted to its demands as

individuals and as companies. We have lived as hunters individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we and as farmers, we have worked in factories and now we

live in an information-based society whose icon is the live in an information-based society whose icon is the

computer. computer. We stand facing We stand facing the fifth kind of society: the fifth kind of society: the Dream Societythe Dream Society.. … Future … Future

products will have to appeal to our hearts, not to our products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to heads. Now is the time to add emotional value to

products and services.”products and services.”

Rolf Jensen/ Rolf Jensen/The Dream Society:How the Coming Shift from The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your BusinessInformation to Imagination Will Transform Your Business

The Marketing of Dreams (Dreamketing)The Marketing of Dreams (Dreamketing)

DreamketinDreamketing:g: Touching the clients’ Touching the clients’ dreams. dreams.DreamketinDreamketing:g: The art of telling storiesThe art of telling stories and entertaining.and entertaining.DreamketinDreamketing: g: Promote the dream,Promote the dream, not the product. not the product.DreamketinDreamketing:g: Build the brand aroundBuild the brand around the main dream.the main dream.DreamketinDreamketing:g: Build the “buzz,” theBuild the “buzz,” the “hype,” the “cult.”“hype,” the “cult.”

Source: Gian Luigi Longinotti-BuitoniSource: Gian Luigi Longinotti-Buitoni


UpUp


The Value-added Ladder/The Value-added Ladder/ EMOTION EMOTION

Dreams Come True*Dreams Come True*Design-driven Spellbinding Design-driven Spellbinding

Experiences Experiences Customer Success/Implemented Customer Success/Implemented

Gamechanging SolutionsGamechanging SolutionsServicesServicesGoodsGoods


**Psychologists (Degree: Psychology)Psychologists (Degree: Psychology)

CCDM*DM*

*Chief Dream Merchant*Chief Dream Merchant

The Dream ManagerThe Dream Manager —Matthew —Matthew

KellyKelly

“An organization can only become the-best-version-of-“An organization can only become the-best-version-of-itself to the extent that the people who drive that itself to the extent that the people who drive that

organization are striving to become better-versions-of-organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-themselves.” “A company’s purpose is to become the-

best-version-of-itself. The question is: What is an best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the employee’s purpose? Most would say, ‘to help the

company achieve its purpose’—but they would be wrong. company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company version-of-himself or –herself. … When a company

forgets that it exists to serve customers, it quickly goes forgets that it exists to serve customers, it quickly goes

out of business.out of business. Our employees are our Our employees are our first customers, and our most first customers, and our most

important customers.”important customers.”


SOUL II.SOUL II.THE STORY.THE STORY.

““Storytelling Storytelling is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

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

opportunity to create anopportunity to create an adventureadventure. . ……

“The Prowler makes you“The Prowler makes you smilesmile. . Why? Because it’s Why? Because it’s focusedfocused. It has a. It has a pplotlot, a reason for being, a, a reason for being, a ppassionassion.”.”

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

Hmmmm(?): “Only” Words …Hmmmm(?): “Only” Words …

StoryStoryAdventureAdventure

Smile Smile FocusFocus

PlotPlotPassionPassion

CCSTSTOO*

*Chief Storytelling Officer

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

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

we work with others.we work with others. ComComppanies anies will thrive on the basis will thrive on the basis

of their stories and of their stories and mmyythsths.. Companies will need to understand that Companies will need to understand that

their products are less important than their stories.”their products are less important than their stories.”

—Rolf Jensen, Copenhagen Institute for Future Studies—Rolf Jensen, Copenhagen Institute for Future Studies

The Value-added Ladder/ EMOTIONEMOTION

Dreams Come Dreams Come True/Best Story True/Best Story

Wins*Wins*Design-driven Spellbinding Experiences

Customer Success/Implemented Gamechanging Solutions

ServicesGoods

Raw Materials

**Anthropology (Degree: Anthropology)Anthropology (Degree: Anthropology)


VALUE-ADDED LADDER VALUE-ADDED LADDER VII.VII.

ALL YOU NEED IS ALL YOU NEED IS LOVE.LOVE.

““Brands have Brands have run out of run out of

juice. They’re juice. They’re deaddead.”.” —Kevin Roberts/Saatchi &

Saatchi

““Brands Are Out of Juice”Brands Are Out of Juice”

1. 1. Brands are worn out from overuse.Brands are worn out from overuse.2. 2. Brands are no longer mysterious.Brands are no longer mysterious.3. Brands can’t understand the new consumer.3. Brands can’t understand the new consumer.4. Brands struggle with good old-fashioned4. Brands struggle with good old-fashioned competition. competition.5. 5. Brands have been captured by formula.Brands have been captured by formula.6. 6. Brands have been smothered by creepingBrands have been smothered by creeping conservatism. conservatism.

Source: Source: Lovemarks: The Future Beyond BrandsLovemarks: The Future Beyond Brands, Kevin Roberts, Kevin Roberts

Kevin Roberts:

LovemarLovemar

ksks!!

Brand …………………………………………………. Lovemark

Recognized by consumers ………………. Loved by PeopleGeneric ………………………………………………… PersonalPresents a narrative ………………….. Creates a Love storyThe promise of quality ……………… A touch of SensualitySymbolic ………………………………………………….. IconicDefined ………………………………………………….. InfusedStatement ………………………………………………….. Story

Defined attributes…..… Wrapped in MysteryWrapped in MysteryValues ………………………………………………………. SpiritProfessional …………………………... Passionately CreativeAdvertising agency ………………………….. Ideas company

Source: Kevin Roberts, Lovemarks


UpUp


The Value-added Ladder/ The Value-added Ladder/ ECSTASYECSTASY

Lovemark*Lovemark* Dreams Come True/Dreams Come True/

Best Story WinsBest Story Wins Spellbinding Experiences/ Spellbinding Experiences/

“Soul” Through Design“Soul” Through DesignCustomer Success/Implemented Customer Success/Implemented

Gamechanging SolutionsGamechanging SolutionsServicesServicesGoodsGoods

Raw MaterialsRaw Materials

**Passion (Degree: ????)Passion (Degree: ????)

CCLL O*O*

*Chief *Chief LovemarLovemarkk Officer Officer


UpUp


4/74/7

Ladder.2008: 4 of Ladder.2008: 4 of 7!7!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions



New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/Services/F-MF-MGoods/Goods/MM

Raw Materials/Raw Materials/MM

Note #1:Note #1:

Men:Men: Reductionist/Reductionist/ Things ThingsWomen:Women: Holistic/Holistic/ Relationships Relationships

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than

boys in the school system. For a number For a number of observers, we have of observers, we have

already entered ‘the age of already entered ‘the age of ‘womenomics,’ the economy ‘womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude

Zieseniss de Thuin, Financial Times, 10.03.2006

Note #2:Note #2: The composition The composition of work groups engaged of work groups engaged

in the “4 of 7” “new in the “4 of 7” “new steps” on the Ladder steps” on the Ladder must “look like” the must “look like” the

global market we serve!global market we serve!

EXCELLENCE. EXCELLENCE. DOES MATTER DOES MATTER

MATTER?MATTER?

““What Isn’t What Isn’t Matter Is Matter Is

What What Matters”Matters”

—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

VA “Teaching Moment”

““Andy pointed to Andy pointed to a molding, about a molding, about halfway up the halfway up the

wall …”wall …”

The The BootBoot … and … and TimberlandTimberland

The The TomatoTomato// FarmerFarmer … and … and

Campbell’sCampbell’s

Ladder.2008: 4 of Ladder.2008: 4 of 7!7!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions



The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo

““Excellence can be obtained if you:Excellence can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

EXEXCELLENC ALWCELLENC ALWAYSAYS..THE THE “VALUE-“VALUE-ADDED ADDED

LADDER.”LADDER.”

excellence 2008: value- added by design excellence 2008: value- added by design tom peters/for the...

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