futurethink ebook

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FutureT inkQUANTUM VALUE LEADERSHIP IN

21ST CENTURY ORGANIZATONS

STAYING COMPETITIVE NOW AND IN THE NEW ERA

From the

FROG POND WISDOM CIRCLE DIALOGUES

with

CASTLE SKIP NEWELL III

How to be a prof table BusinessNOW

ulsi Publishing - Ukiah, Caliornia


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Published by: ulsi PublishingPO Box 384Ukiah, CA 95482Printed in the United States o America.

Cover photos by om Liden

T e author and ulsi Publishing Company shall have neither liability nor responsibilityor errors, inaccuracies, or omissions in Future hink: Quantum Value Leadership in21st Century Organizations Staying Competitive Now and in the New Era: From the FrogPond Wisdom Circle Dialogues with Castle Skip Newell III - How to be a ProitableBusiness Now.

Ebook edition: Copyright 2011 by Castle Skip Newell IIIConversion Services by: Creation Designs

Hard Copy First edition: July 2003 (ISBN-0-9703411-1-3)

Library o Congress Cataloging in Publication Data

Newell III, CastleFuture T ink: Quantum Value Leadership in 21st Century Organizations Staying CompetitiveNow and in the New Era: From the Frog Pond Wisdom Circle Dialogues with Castle SkipNewell III - How to be a Prof table Business Now.

Bibliography.

Nonf ction / Business Reerence

Summary: A personal narrative on how to be a prof table business


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Imagine- Albert Einstein


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VII

CONENS

ACKNOWLEDGMENS IX

About the AuthorCASLE SKIP NEWELL III XI

Part OneINRODUCION 1

Part woSAYING COMPEIIVE NOW AND IN HE NEW ERA 5

Part T reeCUSOMERS-HERE AND GONE 9

Part FourPHYSICS, SCIENCE AND HE NEW ERA OF BUSINESS 13

Part FiveA LARGER WORLD 19

Part SixNEWELLIAN PARADOX 23

Part SevenHE KNOWLEDGE ERA 27

Part EightYOUR UNIQUE LIFE EXPERIENCE 35

Part NineORGANIZAIONAL SUSAINABILIY IN HE NEW ERA 39

Part enNEW AGE MARKEING 43

Part ElevenA NOE FROM HE FROG POND 47


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IX

ACKNOWLEDGEMENS

T is book is dedicated to my wonderul wie, Barbara Newell, PhD. She is theounder o Penoin-Perormance Coatings Inc., the high quality wood inish

company with sales across the U.S., Canada and used in some o the worlds out-standing museums, theme parks, homes and commercial buildings. As CEO, CFOand Chairman o the Board, she leads a very successul organization using manyo the skills outlined in this book. As an accountant and scientist with a Doctoratein Medieval Literature, Barbaras biography is listed in Whos Who in AmericanWomen and Whos Who in the World. She is a tremendous volunteer, serving asChairman o the Board o the 200-employee Mendocino Community Health Clinic,which serves thousands without regard or income, race or background. She is apilot, is very involved in the arts and raises Arabian horses or pleasure.


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XI

About the Author

CASLE SKIP NEWELL III

As an Expert Color Commentator or ABC elevisions Wide World o Sports andwinner o a Cannes Film Festival Golden Globe Award or the show he did with

ABCs Bill Flemming at the Huntington Beach Surf ng Contest as the best one hoursports show o the year, hes spent time on-camera around the world. Simulta-neously developing a career in publishing, Mr. Newell worked as AdvertisingManager or such magazines as Surer, Suring, Cycle World and other specialinterest publications. Working or N.W. Ayer, Jorgenson and McDonald, one othe worlds oldest and one o the largest advertising agencies, he developed abackground in client services or some o the biggest national accounts. In orderto gain irst-hand knowledge o the client side, he joined Kawasaki MotorcycleCorporation, the American division o the huge Kobe, Japan based KawasakiHeavy Industries and spent years in Japan, England, Italy, Canada and acrossthe U.S. He served on the Consumer Product Saety Commission in WashingtonD.C. on the B-175 Committee or Power ool Saety rom 1985-1990 and taughtForestry Saety Engineering as a part time Instructor on the College level. He is theonly our-time guest speaker to the Alaska Loggers Association and has giventalks to varied business groups on the subject o growing business.

Mr. Newell owned his own business consulting irm or some years, CastleNewell and Associates, and advised diverse industries such as manuacturing,

hi-tech electronics, wineries, microbreweries, mail order irms, agri-business,contractors and builders, cosmetics, arms and nurseries, real estate, home improve-ment companies, banks, attorneys and CPAs. As a long-time public speaker andwriter o a best-selling business book, he is a member o the National SpeakersAssociation. Mr. Newell is President and Chie Operations Oicer o Penoin-


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Perormance Coatings Inc., ounded 33 years ago by his wie, Dr. Barbara NewellPh.D. Penof n wood f nishes are sold in thousands o stores across the U.S., Canadaand several oreign countries.

His speaking topics rom his book FutureT ink, Quantum Value Leadershipin 21st Century Organizations How o Be A Prof table Business Now, include hisQuantum Value ormula o K+2CxE+ QV. his concept uncovers the secretsto understanding and leveraging organizations hidden values to meet customerexpectations in the new era. Audiences discover his concepts o Wetware, IntellectualCapital, Quantum Customer Value, New Global Quality Movement, the NewellianParadox, the Doubler Factor, Quantum Physics, Organizational Structure, UsingKnowledge to Compete, Creativity, T e Multiplier Factor, Visionary Leadership,and New Age Marketing.

Castle Newell III has an incredible background in volunteerism as well. He hasbeen listed in the U.S. Congressional Record, tributes rom the U.S. Senate, the237th American Point O Light Award or Volunteerism rom President GeorgeH.W. Bush, the Caliornia Governors Award, the Caliornia Assembly Resolution,honored in the U.S. House o Representatives, a U.S. Congressional Salute, andhonors rom President Ronald Reagan and Oprah Winrey.

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PAR ONE

INRODUCION

T e purpose o the Quantum Value equation is to help you understand yourpotential and your place in the world as the universe goes through some turbulenttimes in the entrepreneurial setting and in our social world.

T is book is about understanding the Quantum Value concept, and how theQuantum Value ormula works. Drawing the ormula on the blackboard would looklike this: it would be K standing or Knowledge, plus C or Creativity, doubledand multiplied as a component by E, representing Unique Lie Experiences, whichequals Quantum Value. T is ormula helps us capture the essence o the individualin the New Age because its so simple to grasp and assists the entrepreneur, andbusiness person, in knowing his or her potential. Its adding Creativity to Knowledge,and then magniying each with Unique Lie Experiences to create added value.

My Quantum Value theory is about undamental physical reality, about thelatest insights o quantum physics and quantum thermodynamics and how theseinsights can relate to our everyday concerns about sel and society and our entre-preneurial business. T e idea o a quantum society stems rom our conviction that awhole new paradigm is emerging rom our description o quantum reality, and thisparadigm can be extended to radically change our perception o ourselves and thesociety in which we live.

T e word Quantum is def ned as a quantity or an amount. In the world o

physics its the smallest amount by which certain physical quantities can change,especially a discrete quantity o electromagnetic radiation. T is amount o energy isregarded as a unit.

T is unit in the world o business and entrepreneurship is the individual. T ekey to Quantum value is an understanding that these hidden assets are really what


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is going to drive the next quality movement globally. It is the intangible assets in acompany and in small entrepreneurial settings that are the real source o strengthor an organization to distinguish itsel in the marketplace or, in the case o the

internet, the marketspace.Were going to have to develop a deeper understanding o just who is the

individual and how their knowledge, creativity and unique lie experience createsQuantum Value or themselves, and or the businesses in which they own or work.

Lets look at this more deeply. K or Knowledge is the f rst component o theQuantum Value ormula. T is intellectual capital or wetware, the value o knowl-edge in an organization, can leverage the organizations hidden value by increas-ing the individuals competency levels and adding to the number o completed new

products per year.When Knowledge is gathered and then Creativity (C) is applied, we have

achieved what I call the Doubler Factor. T e Creativity we bring to a situationis the real Doubler over and above Knowledge. We can know a lot o things. Butwhat we do with this, to get and keep customers or to be more competitive in themarketplace, takes immense Creativity.

But Creativity alone does not complete the Quantum Value ormula. Creativitywithout the template o Unique Lie Experiences is just brainstorming in the dark.

o make Quantum Value happen, the creative insight must be viewed rom theperspective o Lie Experience. How and in what ways do I draw parallels betweenmy business and my days in the rodeo? (Answer: plenty) Or surf ng? Or parenting?How do these experiences increase my understanding o how the world works?

Quantum Value is going to revitalize organizations, particularly sinceSeptember 11th, the war, the craziness in huge corporate accounting abuses andlost shareholder value, because its going to help renew and change the humanindividual. I think this is the way you can understand, and I hope my teaching helpsyou, to comprehend what its going to be like to take quality to the next level. Whatare consumers demanding? What makes a transaction happen?

In that world o entrepreneurship, nothing happens until a transaction happens.Until you cause somebody to go on-line, pick up a phone and dial an 800 number,or cause a customer to walk into a store or sign a check or put a credit card number


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in the mail. .. nothing happens until that transaction happens. So, we ocus verycareully on why and how that needs to happen in a way that consumers today willselect you, your product or service. By the way, the word entrepreneur comes rom

the French word entreprendre, which means to take a risk, and that certainlyapplies to business today.

Im going to teach you about the Newellian Paradox. I want you to under-standthat there are paradoxes and things happening today, perhaps like no other time inhistory. I want you to understand the Newellian Paradox, as Ive called it, and Imgoing to show you what the Doubler Factor is all about...how it works and how youcan apply it. T ese are concepts that everyone must understand to compete in theuture. When I work with companies and organizations, I call it Renewell. Its theRenewell o an organization. And, in these Frog Pond Wisdom Circles, were going

to talk about some things that I want to cover with you, so when they come along,you will understand what it is that was important in the discussion that we had.

Were going to talk about 21st Century competitiveness. Were going to talkabout organizational knowledge and discuss Intellectual Capital awareness. Heresone that is so important: customer service on the next level. Sot and intangibleassets. What are they? How do you understand them? How do you value them?How do you give worth to them now in this rapidly changing era?

Were also going to talk about New World Marketing. I want you to be able tounderstand rom the Quantum Value view what its going to take in New WorldMarketing to stay competitive and to survive as an entrepreneurial organization.I also want to talk about the conceptual thinking process and Creativity ... whereand how to f nd it. Im going to discuss Visionary Leadership, that component othis ormula under Lie Experience that is so vital to our survival as a society.

Well be discussing Customer Def ned Quality. Im going to give you a couple oparadox situations, a couple o paradigm shi s that are happening.

A great phase I saw on a bumper sticker the other day said, Shi Happens, andthats what we are going to talk about.

Im going to talk about team thinking. Were going to cover Creativity andspirituality o the Universe. Were going to talk about the Lie Experience componentin the Quantum Value Individual. Understanding Quantum Value as a total human


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and how we use Futurehink here in the Wisdom Circle Dialogues, as well asunderstanding the art o the long view ... which is the what might be o scenarioplanning.

Id like to begin by telling you what I do, what I bring to the table and why Imdoing so much research and study now into this Quantum Value concept that willlead us into the next Global Quality movement.

My claim to ame is that Im an Entrepreneurial Medicine Man. I look atcompanies and solve problems. Im kind o a Doctor o Entrepreneurship. Im ageneralist. Im a very broad generalist, but I bring changes in thinking, and bringnew options to the table. In the next era, this is going to be, and already is, soincredibly valuable.

I identiy with you, because I come rom business. My lie has been ramed in thebusiness world and I share with you the ervor, the deliciousness, and the optimismo this next era. T e velocity at which our world is changing requires us to havediscussions like this on an on-going basis. So having Wisdom Circle Dialogues likethis inside organizations and corporations, groups and associations is so extremelyvaluable because it disturbs particles, it gets people thinking, it gets them reocused,renewed and re-visioned, and it jump-starts and creates magic dust. T ese kinds odiscussions can do that. T is is what I do.


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PAR WO

SAYING COMPEIIVE NOW

AND IN HE NEW ERA

T is part o the lecture consists o Staying Competitive Now in the New Era.he revolution really is upon us, and it isnt going to stop. You can call it the

Customer Revolution or whatever you like. But, all o the various energies and lineso action that businesses are putting orth right now are beginning to converge into asingle ocus: winning and keeping the customers business by doing the right thingsoutstandingly well.

T e so-called Quality Movement is one o the most conusing and rustratingpanaceas ever to hit the business scene. Other companies have ocused on the ideaso customer service, getting employees to be nice to customers, to be happy. Youand I know that theres no point in trying to make quality a thing unto itsel, and no

point in trying to love the customer to pieces i we dont make a prof t or meet therelated business objectives.

Quality and service are no longer two separate issues: they are now one and thesame. Once we leave behind the archaic distinction between products and services,we understand the only thing that really matters in business is delivering CustomerValue ... which is always a combination o tangibles and intangibles. Quality is notthe objective; service is not the objective; Customer Value is the objective.

T e customer buys a otal Value Experience. A otal Customer Value Package.

Retailing is a customer value business. So is banking, direct mail, hotels, shippingand transportation, health care, construction, insurance, and even governments arecustomer value businesses. Managing customer out-comes is going to be the keyto managing today and in the next era. We must move beyond just quality andprocesses and ocus on perpetually improving the customers total experience.


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T ere is a big shi to customer value and organizations must be ocused onadding value or customers, either internal or external. he loss o ocus on thecustomer as a human being is probably the single most important act about the

state o service and service management in the Western world during the openingyears o the 21st century.

he customer should not be seen as an outsider. Rather, great companiessee each customer as an individual and make every possible attempt to get insidehis or her mind. Remember: marketing takes place in the mind. T ink small towin big. Single particles. Micro-marketing is making 1 the only number thatcounts. Great companies customerize by committing themselves through theirresearch, product design, and service delivery to win customers 1 by 1. And, thereally competitive businesses in the age o 21st-century thinking have a motto o

zero deects, but the real concept o today is zero deections. T e bottom line obusiness, again, is to get and keep a customer. A companys health in the new erawill be measured on the attrition o its customers!

When it comes to quality in the marketplace, the only thing that matters is thecustomers experience. T e Quantum Customer Value package is a combination othings and experiences that create a total customer perception o value received.Remember that perception can be more powerul than reality!

What we need to deliver is a complete Quantum Customer Value package. T isis a combination o tangibles and intangibles and experiences and outcomesneeded to win the customers approval and secure the right to survive and thrive in ourmarketplace. hereore, the answer to business success lies in creating barriersto entry by competitors. You do this by bundling the product into a CompleteCustomer Package, comprised o process, practices and various intangible eaturesand benef ts that take longer or a competitor to duplicate or surpass.

Dr. W. Edwards Deming, the great quality guru, has said, and I think its soimportant, Customer satisaction is not enough. Youve got to move beyond

customer satisaction to customer delight. So, we have to understand Quality inthe 21st century must start with the customer, not with the tangible products soldor in the work process that creates them. T is is a proound change in ocus; romactivities to outcomes.


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Feelings are contagious, too. Remember, the way your employees eel isultimately the way your customers will eel. And, I want you to know about MOs,Moments o ruth. T ese are any episodes, however brie, in which a customer

comes into contact with some aspect o the organization and orms an impressiono its services.


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9

PAR HREE

CUSOMERS-HERE AND GONE

Now, the next Wisdom Circle Dialogue Id like to discuss is about understanding

where have all the customers gone? T is is part o Staying Competitive ... Now andin the New Era. Customer satisaction is heading down in the United States, asurprising and troubling trend. Recent measures o the annual American CustomerSatisaction Index, coordinated by the American Society or Quality Control,looked at thousands o products and services, rom computers to cars to municipalagencies to movies, rating how hard-to-please Americans view things in the worldo commerce.

Why such dissatisaction? One reason is that Americans are hard to please.

Deect-ree products alone dont make them happy, nor does kid-glove service.Ultimately, a business is worth nothing i it ails to satisy its customers. Americanconsumers are activists. I they eel mistreated, they walk. Even worse, they talk!Research shows that people tell only eight riends about a truly satisying experi-ence. Deliver one bum ride, though, and more than 20 people will hear about it!

Yet, how little we know about these indispensable strangers, our customers. Arethey happy, restless? Was it good or them too? Will they come back tomorrow? T eanswers to these questions prooundly a ect any business. Indeed, one could saythey def ne a business. T ey also def ne the meaning o economic activity. In thelarger sense, an economy cannot be described by adding up how many tons orebar it makes, how many passenger miles o air travel it logs, or how much woodits woodchucks chuck per hour. All these count, but in the inal analysis whatmatters is how well an economy satisf es its customers needs and wants.


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T ree villains that allowed U.S. companies overall customer satisaction ratingsto decrease year a er year are number one, misconceived penny pinching; numbertwo, ailure to respond to customers rising expectations; and, the third is insu -

ciently rigorous ways o tracking customer attitudes. Dial 911. Red lights and sirens!T ere is no evidence that customer satisaction is increasing despite declining

gross domestic product (GDP) and productivity. In act, as the index shows,the overall decline is altering. It has moved in the wrong direction. hats notencouraging, especially a er years o Malcolm Baldridge awards and thousands ocustomer surveys by banks, hotels, and airlines. How in the world can Americanconsumers, the ungrateul wretches, be less satisf ed? Since the customer is alwaysright, has business done it wrong? Yes. Business has always viewed customer serviceas a cost rather than an investment. It has been insu ciently aware o customers

rising expectations, and it has not yet f gured out how to def ne customer satisac-tion in a way that links it to f nancial results.

Few companies in any industry realize the awesome f nancial leverage o a loyalcustomer base. Keeping customers is a great way to grow. Oice o ConsumerAairs Studies shows that the price o acquiring new customers is f ve times as greatas keeping old ones. You can f ll a bucket a lot aster i its not leaking.

As customers get better treatment, they demand even better treatment. Whatmakes customer satisaction so di cult to achieve is that you have to constantlyraise the bar, extend the f nish line. You can never stop. Heres a great example oa conundrum businesses ace now and in the New Era. A bank might think it hasdone a great job i it processes mortgage applications in three days instead o ten,but still might not impress a customer who can buy a pair o boots rom L.L. Beanon-line at 2 a.m. Sunday morning and have one-day delivery.

Heres a test: I you cant determine the link between increased customer satis-action and improved f nancial results, youre not measuring customer satisactioncorrectly. Happy customers should exhibit at least one o three measurable charac-

teristics: One is loyalty or retention rates; two is increased business or what I callshare o wallet, and three is insusceptibility to rivals the or competition.

T e e orts a business takes to increase customer satisaction should be the onethat it knows, not just by gut eel, but rom rigorous study to have a provable e ect


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on these characteristics. I you want your customers to stay longer, you should f ndout what specif c actors, such as aster delivery, electronic billing and payment, orbetter trained personnel, makes the most di erence in your retention rate and how

much that dierence is worth. his means measuring and managing customersatisaction cannot just be the private preserve o the market research department.Its the job o the whole business. It is the whole business.


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PAR FOUR

PHYSICS, SCIENCE AND HE

NEW ERA OF BUSINESS

Now Id like to discuss with you the world o physics, the world o newscience, and specif cally, understanding the world o quantum mechanics andquantum physics, as it relates to organizations. Quantum systems have the ability toreplace the politics o con ict and conrontation in small organizations. Quantumsystems can replace collision with a tendency to overlap and combine when theymeet. Quantum study can be applied to human behavior as it relates to the searchor a more exible, less hierarchic management and organizational structure. Wecan discover a more exible response to the increasing conusion surrounding ourindividual and group role and relationships in society at large. Could we build a newquantum based society? O course! A new business Ethos? Absolutely!

T e main challenge o our times is to link the inner world o the sel with theouter world o society and to see both within the larger context o the natural world.Yet, we human beings are really physical creatures. he dynamics o both ourbodies and our minds emerge rom the same laws and orces that move the sun andthe moon or that bind atoms together.

Physics tells us about the processes o creativity and transormation in thenatural world, and physics is what Quantum Value is all about. he physics oconsciousness tells us about those same processes within ourselves and our society.

Still, to speak o physics in the same context that we speak o something likeconsciousness, sel-development, or social transormation, will conound mostpeople who are accustomed to thinking o a science, and particularly o physics, asa orce that has tended to dehumanize and demystiy so much o our experience.


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T e physics o Sir Isaac Newton is now known to be only a limited approximation,valid only within a narrow range o our experience. It has been superseded primarilyby quantum physics, and more recently still by the exciting new physics o chaos

and complexity theory. T ere is a whole rich repository o language, metaphor andillusion in these new scientif c ideas o quantum mechanics and Quantum Value, aswell as practical applications or understanding human nature and how we mightraise our consciousness regarding business.

Quantum physics, in particular, almost cries out or Use as a more general modelor a whole new kind o thinking about ourselves, our careers, and our experience.T ere is an uncanny and intriguing similarity between the way we are now beginningto understand about human social relations and how they apply to the businessworld.

I hope we can gain much positive understanding about the possible linkbetween quantum phenomena and brain processes. T e main point o all this issimply to say that there are good reasons or Supposing that the mind actually hasa quantum dimension and thereore, our social and business potential might deriveliterally, in part, rom this.

My Quantum Value theory is about undamental physical reality, about thelatest insights o quantum physics and quantum thermodynamics, and how theseinsights can relate to our everyday concerns about sel and society and our entre-preneurial business. T e whole idea o a quantum society stems rom our convictionthat a whole new paradigm is emerging rom our description o quantum reality,and this paradigm can be extended to change radically our perception o ourselvesand the social world We Want to live in.

Id like to talk to you or a minute more about the world o quantum mechanics andquantum physics. T e quantum world teaches that there are no pref xed def nitelydescribable destinations. T ere are, instead, potentials that will orm into real ideasdepending on Who the discoverer is and what he or she is interested in discovering.

Only by venturing into the unknown do We enable new ideas to take shape, andthose shapes are di erent or each voyager.

hree branches that you might want to study at your own leisure wouldbe quantum physics, sel-organizing systems and Chaos theory. Quantum physics


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challenges our thinking about observation and perception, participation andrelationships, and the in uences and connections that are created across large andcomplex systems.

Also study sel-organizing or dissipative structures, new ways o understandingthe disequilibrium and change were now acing, as well as the uses o disorder increating new possibilities or evolutionary growth. Inormation in this context oour sel-organizing universe is the primal energy that structures matter into orm,the necessary ingredient or continued lie. Sel-organizing structures demonstratenew relationships between autonomy and control, showing how a system is ableto maintain its overall orm and identity only because it tolerates great degrees oindividual reedom.

Classic physics in the now-passe model o Sir Isaac Newton reers to the de-scription o the world in terms o objects, atoms, marbles, planets and galaxies thatmove along precise trajectories through space and time. It is the world o the base-ball diamond and o the solar system; predictable, amiliar, and readily visualized.Particle physics, on the other hand, describes the quantum world, populatedwith such subatomic objects as quarks and electrons, whose existence can be detectedonly through the most indirect means. T ough every bit as successul in its own sphereas classical physics is in the ordinary world, quantum physics describes a worldthat is unimaginable. It deals as much with potentiality and possibility as with

actuality. It speaks not o certainty but o chance and randomness. Its abstractmathematical equations dey translation into visual terms. How exciting, howdelicious, how wonderul to be around on this stage when our creativity, our ownknowledge and our desire or the entrepreneurial excitement will come rom worldswe are just exploring.

I believe that a wider appreciation o the revolutionary nature o quantum realityand o the possible links between quantum processes and our own brain processescan give us the conceptual oundations we need to bring about a positive revolution

in business and in society.Whats next in the ascinating world o quantum physics and how will it a ect

us in 21st-century organizations? T e quantum computer is closer than we think.Mechanics who design quantum computers hope to use the increasingly spookybehavior o electronic components as they grow smaller, due to the e ects predicted


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by quantum theory, and turn it into advantage. T ese quantum mechanics hope touse one o that theorys main planks, the uncertainty principle, to allow themto design machines that can accomplish massively parallel calculations which are

way beyond even the theoretical capabilities o conventional computers.And in discussing Quantum Value, Id like to talk about this ormula: K plus C

(doubled) x E = Quantum Value. T is ormula helps us capture the essence o theindividual in the New Age because its so simple to grasp and assists the entrepre-neur, the business person, in knowing his or her potential. Its adding Creativity toKnowledge to make added value.

T is is my ormula or the New Age potential o the individual and the company.Quantum Value o the Knowledge Era again is K plus C (doubled) x E = Quantum

Value. Knowledge plus Creativity doubled, times Unique Lie Experience equalsQuantum Value or the 21st century.

Quantum Value is making a total human being and/or company or the newage by sel-awareness o Quantum Value theories and education. Sort o a selrealization, i you will. Its the ability to create value in the new era. Its dynamic innature. Intellectual capital creates human capital, structural capital, customercapital and inancial capital. Using knowledge and creativity in business gainedrom unique Lie Experiences to obtain Quantum Value. And heres a ramework orunderstanding intellectual capital as Quantum Value.

Intellectual capital, or wetware, the value o knowledge in an organization,can leverage the organizations hidden values to meet customer expectation in thenew era by using Knowledge and Creativity in business, plus gained unique LieExperiences to attain Quantum Value, Its our ability to create real Quantum CustomerValue in the new era.

T is is the excitement o a worldwide creation truly leading human change andthus revitalizing business. Quantum Value causes individual change and then com-pany change. It makes us leaders in the next quality movement globally. QuantumValue is the new era Doubler Factor. Everyone must have it. In the Knowledge Era,intangible assets are the real source o strength or the f rm to distinguish itsel inthe marketplace. Knowledge plays a key role in the ormation o intangible assets


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and is increasingly reerred to as intellectual capital. And remember the ourkinds o capital: human capital, structural capital, customer capital, and f nancialcapital.

Quantum Value is a ramework or understanding intellectual capital asQuantum Value. Quantum Value is making a total human and/or company or thenew age by awareness and education o Quantum Value theories. Quantum Value isa philosophy or doing business in the 21st century that delivers much more addedvalue and huge customer-perceived value, which is vital to staying competitive nowand in the next era.

T e Quantum Value individual or the 21st century will understand creativity othe universe, and knowledge awareness, and have a valued lie experience component.

Quantum Value also brings about a total human being in the 21st century. It teachesorganizational knowledge; it teaches intellectual capital awareness; it teachescustomer service ocus and so and intangible assets; New Age marketing; visionaryleadership; conceptual thinking; creativity and customer-def ned quality; and teamthinking.

Quantum Customer Value, when its present in a company, can result in a greaterpercentage and coverage in the penetration o market segments. It can resultin longevity o relationships with customers. It multiplies the perception o hugeadded-value and it leads to a higher customer satisaction index.

Quantum Value and Quantum Customer Value a ect the company by increasingthe individuals competency levels and adds to the number o completed newproducts per year. It increases the capability or huge new arenas o teamwork,and pushes our capability to develop and maintain larger relationships. QuantumValue can result in more revenue per employee and more income rom new revenuestreams. So, Knowledge plus Creativity doubled (the Doubler Factor) times UniqueLie Experience, as a component, equals Quantum Customer Value.


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In todays economy, we cant just sit there. Planning in a niche market economymust be incredibly dynamic. Strategic marketing plans or the uture look more likepersonal journals and e-mail logs than they do the neatly stacked tomes that

compile dust on shelves today.A business or a market is not like an erector set you bolt together. Its like a lie,

spontaneous, reckless, mostly unpredictable and chaotic. Its like the lie orce thatcould not be restrained in Jurassic Park. Its the emergent, synergistic miracle thatthe Austrian economists like Schumpeter, Von Mises, and Von Hayek have taughtus occurs when people are ree to live their lives.

Niche markets are by deinition, savvier and better inormed than the massmarket. And the customers o those groups hunger or intellectual nourishment.

Niches are made up o individuals who possess specialized knowledge. T ese arecustomers whose background, education, training, and experience make themexpert, at least to some degree, in a particular area o special interest. Marketingcommunications directed at a niche market must then be very substantive andcontent-rich. here are currently well over 15,000 magazines, trade or specialinterest, published in this country and 100,000 books published every year, all aimedat niches.

Remember, too, the balance o power will continue to shit towards smallcompanies. And that trend has been demonstrably underway or most o the post-war era in the United States. Small companies are becoming more and more potentbecause a single person at a workstation can now command the creative power o aactory tycoon or broadcasting magnate o the Industrial Era. It represents a hugeincrease in the creative communications power o individuals.

It doesnt matter whether youre in goods or youre in services. oday were allbeginning to understand that the ultimate source o di erentiation in the market-place is customer-def ned quality. Just as quality has become the imperative o allour business processes, we would submit substance, likewise, must become the

imperative o all our marketing communications. As markets ragment and disin-tegrate, our entire marketing challenges must become the satisaction o individualcustomers in these tightly-deined niches. o satisy them requires genuine,continuously improving quality, and to persuade them, will require increasinglymore substantive presentations. Yet, we dare not deliver substance without style.


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A typical issue o T e New York imes contains more inormation than a citizeno the Renaissance considered in a lietime. More new products were introduced in1995 than existed during the entire 19th century. he noise level rings at high

decibels, and to break through the clutter will still require, more than ever, just aclever phrase o the artistry o visual imagery in order to entertain in the wayWebsters dictionary def nes entertainment, which is to hold the mind.

But were also entering an age in which we are orced to consider stoppingpower. Well not get away with tricking and teasing people to consider our messagesin this new world. In many cases, they will decide to consider our messages on anon-demand basis, knowing or believing that theyll f nd the substantive context theyseek beneath the next interactive button.

Its a world in which we need to be as concerned with the communications wehave with customers as we have, thereore, been with communicating to or at them.On the whole, marketers are much more prepared to talk to customers than hearrom them. People in this New Era who think you cant go broke underestimatingthe intelligence o their customers are going to go broke.

Id like to talk with you or a minute about the global aspect and some things thatare happening on the larger playing f eld ... and certainly playing f elds are movingthese days with rapidity. Somebody asked me recently i I like to ski. I said yes, butI told them I was raised around the sport o surf ng-and they asked me whether Ithought skiing was more un, easier to do and provided more thrills than surf ng.And I said, No the challenge o surf ng is even greater, because in surf ng the hill ismoving too. T eres another dimension, another dynamic. T ats sort o whats goingon in the business world today. Playing f elds are shi ing and moving. But the biggerthe worlds economy, the more powerul are its smallest players. In the 21st century,particle physics, which is the study o the smallest structures in nature, joins orceswith cosmology, which is the study o the universe as a whole.

It used to be bigger is better. But now its the smaller, speedier players, more

exible and nimble, that are going to win. In the process, the telecommunicationsindustry, which encompasses telephones, televisions, computers and consumerelectronics, has moved into a period o thrashing, creative chaos. oday there aremore microprocessors, or computers on a chip, than there are people on earth. T eability to process enormous amounts o inormation keeps expanding.


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PAR SIX

NEWELLIAN PARADOX

Here are some thoughts about the Newellian Paradox. T e Newellian Paradoxbasically postulates that the technology revolution is gaining such momentum, andas it gains the velocity and then the momentum, the role o the individuals thought

power and knowledge creation will be imperative. T ats the paradox. T e asterwe receive technology and inormation, the more we will need to be grounded inleadership, ethics and ree-orm thinking to solve problems and achieve lie satisac-tion. T e role o the individual becomes singularly more important as technologyadvances. From the f eld at Kitty Hawk, or the Iron Age were just leaving, eye-to-eyecontact between people, hand shakes, personal commitments and a helping hand tonurture and teach the unortunate o the world will be the measure o human beingsin the 21st century. T e Newellian Paradox basically says the role o the individualsthought power and knowledge creation and leadership will be imperative as the

technology revolution gains momentum.

Here is something about emerging markets that were all watching constantly.Markets can emerge and markets can change, or markets can disappear. Looking atemerging markets, barring any widespread plague or catastrophe, the world popula-tion will increase by nearly three billion over the next 25 years, with our out o f vepeople living in developing countries. As the average in wealthier economies climbs,the once touted youth boom is a bust.

Watching the shrinking o the younger population globally is astounding. Not

since the dying days o the Roman Empire have we seen anything like this. Inevery single developed country, including China and Brazil, the birthrate is nowwell below the replacement rate o 2.2 live births per woman o reproductive age. Inthe world o politics, this means immigration will become an important and divisiveissue in all rich countries. It splits the understanding o marketing into two distinct


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PAR SEVEN

HE KNOWLEDGE ERA

Continuing on with our Wisdom Circle Dialogues teaching discussions underthe title o Staying Competitive Now and in the New Era-ools or ransormation,What Were Going to Need to Stay Competitive.

Id like to discuss now the whole understanding o knowledge and using knowl-edge to compete. In the knowledge era, the intangible assets are the real source ostrength to distinguish a company in the marketplace. It cannot be easily duplicatedby competitors or obtained instantaneously.

Intellectual capital is a dynamic commodity, and again, its the sum o thehuman, structural and customer capital. Its the unique di erence in tacit knowledgethat makes valuation di cult. In the knowledge era, the value chain is really changingrom a production ocus to a customer service ocus. And, the human capital

aspect o a business a ects whether it is building or depleting customer capital. Ina knowledge economy the bottom line o an organization is geared to thrive by lookingorward to the uture by ocusing on renewal and development indices related tointellectual capital.

Entrepreneurial leadership, exibility, agility, and nimbleness in a changingmarketplace, or marketspace, are going to be based on knowledge gathered andcreatively applied. Lie is a creative and evolutionary happening. T e New Worldview is a messiness-norm, meaning messiness is normal. Chaos is too much inor-mation. Lie is a system on the edge o out o control.

T e 80-20 rule o perception is something that I want to discuss with you andhelp you understand. wenty percent is in viewing something, 80 percent is basedon inormation that is already inside us. wenty percent o seeing is disturbing the80 percent.


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Companies in the new era need to develop and f nd wild geese. T eyre theones that make change happen, and change is the new name o the game. Adisturber is the New Wave person who makes paradigm shits inside companies.

I am a disturber. Are you? Innovation technology! Heres a quote: I youre not livingon the edge, youre taking up too much space. Many companies are not improvingknowledge, understanding or gathering. Managing and valuing intellectual capitalwill promote organizational learning and dynamic generation o organizationalcapabilities. A new systemized approach to tracking and managing intellectual capitalis required in addition to the standard book value o the o cial balance sheet.

I growth o customers expectations exceeds the growth o human and structuralcapital, it will have an exponential impact on customer capital. Knowledge is every-ones job in the company, to create it and to use it. And heres the key: Delivering

organizational knowledge through people. You have to use organizational knowl-edge as the larger picture and then deliver it through your people. When you puttogether a group, every individual contributes to the system, and then it becomessomething totally di erent. Systems are di erent than the sum o their parts. T eyrenot predictable just by studying individuals in isolation.

T e words knowledge industries, knowledge work, and knowledge worker areonly orty years old. T ey were coined about 1960, simultaneously but indepen-dently: the f rst by a Princeton economist, Fritz Machlup, the second and third by

Peter Drucker.

I want to talk to you or just a minute about the understanding o the propertyo emergence. Now, what that means is you put something together and it will besomething new. Knowledge is emergent. Put people together in a room and some-thing new will occur. And this is creating huge impacts in the perormance o anenterprise.

An enterprise is a combination o intangible assets, o course, and is the sum ohuman, structural and customer capital. Capital is any source o prof t, advantage,

assets or leverage to create value. Intellectual capital is a dynamic commodity. Andthis ormula that we use-Knowledge plus Creativity (doubled), times Unique LieExperience equals Quantum Value-allows an organization to use hidden values thatwill be required to meet tomorrows customer expectations on an ongoing basis.Its really creating value in a totally di erent way. An intensive ocus on new ways


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o thinking about the value o knowledge in companies is receiving attention rommany areas around the world. he search is on or the methodology in whichintellectual capital can be managed, transerred, generated and measured. It is now

understood that intellectual capital impacts the f nancial perormance o an enter-prise. But it is an elusive aspect o corporate understanding. T e paradox is that themore its used, the more there is o it. You cant store it because it has a short shellie. Intellectual capital is a dynamic commodity and one that is gaining a new labelunder the heading o Organizational Knowledge.

Heretoore, tangible assets tended to receive the most managerial attention,along with a disproportionate amount o the resources available or investment. Inthe knowledge era, however, the intangible assets are the true source o strength acompany has to distinguish itsel in the marketplace. T is competitive advantage

cant be easily imitated by others or obtained instantaneously.

An enterprise is a combination o intangible assets, intellectual capital, f nan-cial capital and tangible assets. angible assets are required or business operations:plant, equipment, building, elements, and physical inrastructure. Intangible assetsare the key to a competitive advantage in the knowledge era, and they include intel-lectual capital, technology, know-how, customer loyalty and business processes.

Intellectual capitalheres a thoughtthe more its used, the more o it thereis. And you cant store it. It really has a short shel lie. Intellectual capital is adynamic commodity. And remember, the dynamics o intellectual capital aredelivered through Quantum Value and is that Knowledge plus Creativity (doubled)times Unique Lie Experience and that equals Quantum Value.

Continuing with our discussion on Staying Competitive Now and in T e NewEra, weve talked about knowledge as the f rst component o the Quantum Valueormula. Lets talk about the Doubler actor, Creativity. When knowledge isgathered and then creatively applied, we have that thing that we call the DoublerFactor. T e creativity we can apply is the real Doubler over and above Knowledge.

We can know a lot o things. But what we do with this, to get and keep customersor to be more competitive in the marketplace, takes immense Creativity. How doesthe creativity o companies by doubling knowledge work? Well, by Knowledge andCreativity, doubled, plus Unique Lie Experiences.


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expressed in a tangible way. O the nearly seven billion people on this planet, thereis no one like you. No two o us share a common f ngerprint. No one has a lie likeyours. Just as your f ngerprints are unique to you, so is your creative expression.

he dierence between creative people and those who are not is purely amatter o sel-perception. I you perceive yoursel as creative, you are. I you dont,you wont be.

A lie creatively lived is a lie joyully lived. Joy is a state o mind. Joy is the essentialsense o being connected to the Universe. Creativity is the component to living ajoyul, meaningul lie. T e one overriding quality that joyul people share is thattheyre living creative lives, expressing their uniqueness, singing their own song. Byexpressing yoursel creatively through your work, your hobbies, your personal lie

and relationships and in your business, you can become the joyul, ulf lled personyou were meant to be.

Our planet is running out o natural resources. T e only resource we have inabundance is human creative potential. Quantum Creativity is the capacity that weeach possess to surpass ourselves, to go beyond our ormer limits, to exceed ourhighest sel-expectations by continually setting new standards o perormance. Youexperience Quantum Creativity when you realize your creative potential is limitlessin any area you wish to pursue.

Here are the our steps o the creative process that were f rst identif ed in thelate 19th century by the German physiologist and physicist Hermon Von Helmholzand later expanded upon in 1926 by Graham Wassas in the Art o T ought. T eour steps o the creative process that become such an important component o theQuantum Value individual are: (1) preparation; (2) incubation; (3) illumination;and, (4) verif cation.

T e f rst one, preparation, includes your education and experience regardingthe problem that you are trying to solve. Incubation, the second phase in thecreative process, is when the magic o creativity transorms the raw material opreparation and begins to percolate on an unconscious level, so the new idea cansurace, Incubation is the critical process o letting the problem go, putting it on theback burner and delegating the problem to your subconscious mind. It gives yoursubconscious mind an opportunity to quiet the incessant internal chatter. One can


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reer to incubation as time out. T e value o time in liberating creativity cannot beoverstated. aking time out is a prerequisite or reaching new creative heights andurther sel-expression. Incubation is down time. And down time is necessary

or Quantum Creativity.T e third Part o the creative process is illumination. T is is the moment when

an idea or solution explodes into your mind. Carl Jung called this awareness levelPrimordial mind. Others call it reverie. Many people experience this heightenedcreative awareness just beore dri ing o to sleep. Sleep researchers call this thehypnagogic state, when our mental images are a mixture o dream pictures andconscious thoughts. T e hypnopompic state, on the other hand, is the one youenter upon Waking up, when the brain is in the theta wave stage, also f lled with amixture o dream and Controlled images. Both these stages are trance-like states

and have been called the gateways to creativity.

T en, the last one is verif cation. T is state simply involves trying out the solutionand making sure it works. Sometimes ideas need time to ripen.

Remember too, the key to longevity is creativity. T ere is a direct connectionbetween creative thought and involvement in lie and the production o epinephrineby the adrenal gland. When the challenge stops, the Supply is turned o , the will tolive atrophies and the body chemistry no longer unctions. Disease is combated bywill. T e proper prescriptions are Written by the body itsel but only in a conditiono balance and a state o grace.

Also, I Want you to understand the Word teleology. hats the intuitiveconversion by brain and mind o special case subjective experiences into gener-alized principles which permit the individual to reorm the environment so as toprovide ultimately higher advantages or mankind and to inspire others to do solikewise. eleology.

Continuing on with our Wisdom Circle discussions on Staying CompetitiveNow and In T e New Era, Id like to talk to you again about new ways o thinking, ying upside down, outside the lines kinds o thinking.

Much o what I do inside companies is getting them and their componentindividuals to look at new ways o doing things; to look at new ways o thinking,ree-orm conceptual thinking.


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Make it a practice to keep on the lookout or novel and interesting ideas thatothers have used successully. Your idea has to be original only in its adaptationto the problem you are working on. Emil Chartier, the French philosopher, said,

Nothing is more dangerous than an idea when it is the only one you have. wo-time Nobel prize-winner Linus Pauling said, T e best way to get a good idea is toget a lot o ideas. He was describing the low probability nature o creative thinking.T e odds that any particular idea will help solve your problem arent that high. Itsimportant to get as many right answers as you can. T ats why a good photographertakes as many photos as he or she can. Shoot the place up! One will be great.

Nineteen out o 20 ideas arent any good, but its because I can generate so manyideas, Im able to come up with a ew exceptional ones. Apple Computer inventorSteve Jobs says, Innovation is usually the result o connection o past experiences

and luck. Its di cult to see the picture when you are inside the rame. And heresanother great quote: T e dog that trots about f nds the bone.

Much o creative thinking involves connecting two previously unconnectedideas and turning them into something new. And heres a little joke about di erentkinds o engineering, so ware engineering, systems engineering and knowledgeengineering. So ware engineering is like looking or a black cat in a dark room.Systems engineering is like looking or a black cat in a dark room in which there isno cat. Knowledge engineering is like looking or a black cat in a dark room where

there is no cat and someone yells, Ive got him!


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rontier where tomorrow is taking shape, and they serve as guides. Guides, to thingsas they are and as they will be. Leadership is a undamental and proound engage-ment with the world and the human condition. Leadership is f r being and then

doing. Everything that the leader does re ects what he or she is. T e concept ovisionary leadership rames the successul company in the new Quantum Value era.

Were all made o our experiences, and each one o us is terribly unique. How todevelop the tools we need to adapt to change is now coming out at a velocity speedthat ocuses on personal achievement, contributions to others who are in need andthe understanding o the Newellian Paradox: that as technology revolution gainsmomentum, the role o the individual and his or her thought power and knowledgecreation will be imperative.

T e aster we receive technology and inormation, the more we will need tobe grounded in leadership, ethics and ree-orm thinking to solve problems andachieve lie satisaction. As I discussed earlier, eye-to-eye contact between people,handshakes, personal commitments, and a helping hand to nurture and teach theunortunate o the world will be the measure o human beings. T ats the NewellianParadox.

Here again, leadership, ethics and ree-orm thinking can li the individual andthe corporation or small business to new levels o contributions. T is combinationis gained through methods used in my own lie as a business advisor.

I want to tell you about the new wave o the 21st century and how to ace itwithout ear, but rather with optimism and the New Age tools each one o us alreadyhas inside as a gi o human spirit. T e Quantum Value ormula shows you how tobe a 21st-century individual by starting now in the f rst decade o the new century.

T e 21st-century organization virtually demands visionary leadership. T e rateso change and e ects o global complexity conspire to make any particular visionuseul only or a limited time. Visionary leaders will have to be a step ahead o thosethey lead and in the business world o their competitors by dreaming about what theuture holds and what role the organization should play in it.

Visionary leadership will be as indispensable or renewing organizations as orstarting up new entrepreneurial and nonprof t ventures. T e visionary leader has arole as change agent, promoting experimentation, creating a sense o urgency or


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change and establishing internal cultures in which risk-taking and broad participa-tion are highly valued.

Visionary leaders have a duty to issue a stirring call to action, a desperate sense

o dissatisaction with the present and a mu ed cry or hope or a better uture.What else can it be but the beginning o a grassroots search or vision? It remainsonly to point out that there are millions o people out there: workers, young peopleand ordinary citizens starved or a sense o direction. Its not a thousand or even amillion points o light that are needed, but hundreds o powerul beacons to showthe way, proposed the late Dr. John Gardner. He was Holder o the Miriam andPeter Hass Centennial Proessorship in Public Service at Stanord University andounded Common Cause.

Visionary leadership can be developed or at least improved. Indeed, the countrysuture demands it, our children deserve it, corporations cannot survive without it,and time is running out. Its time or you to lead the way, to state your vision loudand clear and to put your organization at the leading edge o a renewal that willmake the next decade one o optimism and promise or the people who work withyou and or the entire country.

Vision is your key to leadership, and leadership is the key to organizationalsuccess. A leaders vision also inspires action and helps shape the uture. But unlikea personal vision, it does so through the powerul e ects it has on the people whowork or you or otherwise have an interest in the leaders organization.

Leaders are pioneers. T ey are people who venture out into unexplored territory.T ey guide us to new and o en unamiliar destinations. People who take the leaderrole are the oot soldiers in the campaign or change. T e unique reason or havingleaders is that their di erentiating unction is to move us orward. Leaders get usgoing someplace.

Leaders take charge, make things happen, dream dreams, and then translatethem into reality. Leaders attract voluntary commitment o ollowers, energize themand transorm organizations into new entities with greater potential or survival,growth and excellence. You need to be a direction-setter, a change agent, a spokes-person, a coach.


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I want to talk or just a minute about vision. A vision is a realistic, credible,attractive uture or your organization. A vision is only an idea or an image o amore desirable uture or the organization, but the right vision is an idea so energizing

that it, in e ect, jump starts the uture by calling orth the skills, talents and resourcesto make it happen.

A vision is central to leadership. It is the indispensable tool, without whichleadership is doomed to ailure. And measuring leadership is a part o measuringquality.

Here are some thoughts about Unique Lie Experience and this component thatvalues our diversity and our lies work and our uniqueness. Each o us is so terriblyunique and must be valued, and then that value must be added into the ormula and

measured to equal Quantum Value in the new area.Heres how, perhaps, you can gain a better understanding o the value o your

own Unique Lie Experience component. Sometimes I like to do what I call a liephotograph or a lie portrait. I put a piece o white paper up on the wall and asksomebody to use a crayon and trace my outline onto the vertical butcher paper onthe wall. T en I try to f nd a couple o good photographs o mysel that Ive taken inrecent times and put them through a copier and enlarge them and paste them up inthe area o the ace on the cutout drawing o mysel on the wall.

T en I like to draw lines o to the side rom all points o the body. And I try towrite on those lines important, interesting, unique di erences about mysel: who Iam, where I came rom, my successes, my ailures, my unique upbringing, and someo the successes Ive had in the business world. And pretty Soon a lie portrait beginsto emerge. T e more you can spend some time identiying and mapping the unique-ness o your lie portrait, I think the more understandable and more credible thatuniqueness will become in valuing your component in the Quantum Value ormulaor the uture.


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creating added-value to their own f nancial bottom lines as they support societalinterests.

I want you to understand that creating new kinds o value and reporting it at

the bottom line, using accepted accounting and reporting methods, can really drivechange ... and at a speed that quickly impacts the whole global economy and societyat large. Internal value creation is what business does best. Its how a companydevotes most o its resources and innovation, how it rewards its employees and howstakeholders judge it.

T e increasing speed o organizational sustainability as a ocus concept is beingdriven by global mega-trends that are rapidly creating a new operating environmentor business in the 21st century. Governments globally are repositioning themselves

in this manner. Business and society are more powerul and more globally orga-nized with this ocus. Everyone is better connected and appreciation is growing ojust how unsustainable our present socio-economic paradigm has become. A greatpicture o this vast sweeping concept is eatured in OMORROWS MARKES,jointly published by the World Resources Institute, UNEP and the WBCSD.

Organizational perormance metrics havent changed much in the last centuryand are increasingly less useul as a measure o value and uture growth prospects.Ordinary balance sheets and income statements dont relect the value o theorganizations intellectual capital, human capital, social capital and structural capital,the people, the innovations, the ideas, the processes and, to a great degree,the reputation, which will have a huge e ect on the growth and success o theventure. It is largely these intangibles that are the di erence in the valuation o anorganization.

Environmental issues, or instance, involve impacts to climate change, waterusage, habitat and species protection, and sustainable agriculture. Our planet israpidly being depleted o its soils, f sheries and coral rees. Long term measuresare needed to slow and reverse these negative trends. New Era organizations must

understand that huge leaps are needed, but also the will and resources to changeexisting policies and inrastructures. Likewise, our social concerns expressed involunteerism and the helping to create a changed human beingare vital. Accordingto Labor Departments newest estimate, 59 million Americans perormed volunteer


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work this past year. T ey tutor, mentor, build a ordable housing, teach computerskills, clean parks and streams, and help communities respond to disasters.

T e connection between organizational sustainability perormance and stake-

holder value may be the most compelling reason to get many companies to paycareul attention. When companies can grok organizational sustainability concepts,they out-perorm their competitors as well as the leading market indices. hewinning concept is that these companies are able to deal with complex organizationalsustainability issues and usually have superior employees, managers and manage-ment structures. Many companies are ocusing on improving their rankings toincrease their appeal to investors, bankers, potential employees, and customers-at-large in the changing world o survive and thrive business in the new century.


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one, understand what makes your product or service special; two, understand yourproduct or service well enough to be able to describe it clearly; three, are willingto pay more or whatever it is that makes your brand so special; and our, eel so

strongly about your brand that they will deend it under attack, even at a higherprice.

And heres just a bit o thinking on understanding tactics and strategies. A tacticis a competitive mental angle. A competitive angle means there must be an elemento di erentness. What is your element o competitive di erentness? How are youcompetitively di erent? And, how is that perception understood by your customers?And, is that perception by your customers the same perception that you have oyour own product or service?

A strategy, however, encompasses coherent marketing activities. Price, products,distribution, advertising, sales promotion ... all o the activities o the marketing mix.T ey have to be coherently ocused on the tactic. A strategy is a coherent marketingdirection. Once the strategy is established, the direction shouldnt be changed.

In marketing, as in warare, the saest strategy is rapid exploitation o the tactic.Rest is or losers. Winners keep the pressure on. A marketing campaign consists oholding onto your customers while at the same time attempting to take customersaway rom your competitors. Marketing is a battle o concepts, not products.

T e true measure o a tactic is whether or not you have a concept or an idea todrive your business and whether or not it is truly a competitive di erence. A basicattitude is needed rom managing businesses to managing change. And its done bymoving with the market. You steer your ship by trying to catch the long term tidesand dealing with perceptions. Dealing with perceptions. Remember, perception canbe more powerul than reality.

What is your def ning di erence? Can you state it, and do your customers knowit? Do they understand it? Can they spell it out to people? Will they seek it? Willthey pay more or it? Will they deend it under attack?

And heres another thought. People want to buy rom someone. Give them asomeone. I you dont have a someone, create a someone. People want to buyrom an individual or rom a character. People want to buy rom someone that they


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can know. And you need to develop a story. I you dont have a story, make up astory. Find a story. People want to buy rom someone.

Just a word, too, about the so step and the hard step. Sometimes in helping a

customer make the hard step to a transaction, we can o en help them take a so stepby requesting more inormation or giving them more added value. And inormationis a great, great source o added value.

Our company, Perormance Coatings Inc.makers o f ne wood f nishesmakes a tiny CD-ROM called Quick N Easy Guide to Ultimate Wood Care. Itsavailable ree to proessional contractors and Do-It-Yourselers at paint counter andpro-desks in stores across the U.S. and Canada. It takes the viewer through allaspects o preparation and application o Penof n to all species o wood. Viewers

can click on English or Spanish versions and gain tremendous knowledge aboutwood care. We cant make these CDs ast enough! Guess what brand theyll buyater getting this ree git! Naturally, the CD-ROM is eatured on our award-winning website too, www.penof n.com. Giving knowledge and inormation, plus agreat high quality wood f nish leads to great customer retention over time!

How do we break out? How do we get out into the arena that provides us withour competitive dierence? And whats the mix? Marketing basics are service,quality and delivery. But i everybody is capable o providing those, then it is addedvalue that becomes the real di erence in the competitive arena. And added value isintelligence, inormation ideas and innovation.

Lets talk or just one more minute about Quantum Value. Again, QuantumValue is going to be important to understand because its leveraging an organizationshidden values to meet customer expectations in the New Era, using Knowledge andCreativity in business plus gained Unique Lie Experiences to attain QuantumValue. Its our ability to create tremendous value in the new era.

Quantum Value is the excitement o a new worldwide creation that truly leadshuman change and thus revitalizes business. It causes individual change andcompany change, and makes us leaders in the next quality movement globally.

And Quantum Value is the understanding o the New Era Doubler Factor. Inthe knowledge era, its the intangible assets that are the real source o strength or the


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f rm to distinguish itsel in the marketplace. Quantum is making a total human and/or company or the New Age by awareness education o Quantum Value theories.

Quantum value is a philosophy o doing business in the 21st century that deliv-

ers much more added value. Quantum Value delivers huge customer perceivedvalue, and its through the understanding that working down into the tiniestparticles o an organization, which are its individuals, developing them, givingthem a new sel-awareness o Knowledge and Creativity (doubled) and Unique LieExperiences that they then are able to orm groups that a able to deliver what weregoing to call Quantum Customer Value to customers in the next era. We have togo deeper inside our organizations to create sel-awareness o Quantum Value inorder to be able to deliver it as Quantum Customer Value and become survivors inthe marketplace.


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Lead, ollow, or get out o the way! I learned that message early and I continueto do things di erently. T e playing f eld is always moving is another phrase I use tohelp people experience personal growth in their careers. Growing people is one o

the most important roles or leaders today. Studying the SWO concept is alsoimportant. Understanding strengths, weaknesses, opportunities and threats andsharing them in positive, optimistic, creative meetings can lead to unparalleledsuccess in organizations. Again, the smallest particle, the individual, is the key toorganizational and stakeholder growth in these ast-orward times.

Heading my own consulting company, I was able to advise all kinds o organiza-tions rom start-ups to multi-nationals. Now, we are all being measured on a globalscale in all that we do. I was able to help a west coast mail order catalog company roma garage start-up to a multi-million dollar player with warehouses in the northeast

and the south. Everything I learned growing companies came into play on this one!

Having spent some years volunteering on the back roads o northern Caliorniaslost coast, I undertook a corporate sabbatical and served as a volunteer f ref ghter,Emergency Medical echnician and a volunteer Reserve Deputy Sheri . What alearning experience or me! Nightly call-outs taught me to take calculated risks,something directly related to staying alive. But it taught me a tremendous level oskill or running an international business. I learned f rst hand, about the uniquelyAmerican spirit o volunteer ism ... something that my wie Barbara and I promote

highly in our company. Reaching out to help the sick, injured and needy is not onlyrewarding to us, but contributes to the triple bottom line that companies andtheir employees must understand in the 21st century to be successul and survive asglobal citizens.

One o my avorite techniques is management by wandering around. I didntinvent it, but it has been my style or some years. Its really simple and it works!Moving constantly among our employees, our vendors, our suppliers and our stake-holders. I see things that can be improved and Im able to move easily among our

employees, the smallest particles, creating a partnership or success. A great cultureinternally is absolutely necessary!

My avorite concept is o Louise, my imaginary chicken. She is a beautiul henand she ollows me as I wander about looking at improvements and changes in ourcompany. I love how chickens peer at objects and cluck with interest. I once


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observed ball bearings on the oor o our actory and used my imaginary Louiseto ollow the trail o these somewhat quantum objects. Soon, I ound a orkli witha disintegrating axle and was able to get it ixed and continue the days critical

production. Ive seen so many things that most people miss in organizational structureand always thank my mythical hen, Louise.

Many times, our people quote Albert Einstein when we are at our wits-end witha particular problem. Someone jumps up and shouts Einstein!. What that meansis that we verbally recite his amous quote: Insanity is doing the same thing overand over again and expecting di erent results! T en we jump outside the box and y the plane upside down and do it di erently. It works!


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NOES


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