YELLOW Tom Peters Las Vegas 13 January 2000. Seminar Y2K Brand Everything : Distinct or Extinct

YELLOW

Tom PetersLas Vegas

13 January 2000

Seminar Y2K

Brand Everything:Distinct or Extinct

Microsoft = R.O.W.

Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99

Microsoft = R.O.W. (II)

Microsoft > GM + Ford + Boeing + Lockheed

Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg +

McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats

Source: Yastrow Marketing (through 11-23-99)

No Wiggle Room!

“Incrementalism is innovation’s worst

enemy.” Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of the

Tinkerers.’ ”CEO, large financial services company (New

York, 5-99)

Forces at Work

The Destruction Imperative!

“It is generally much easier to kill an organization than change it substantially.”

— Kevin Kelly,

Out of Control

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

— Peter Job, CEO, Reuters

“It used to be that the big

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

Venture Partners)

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

Brand Inside

PSF 1:Brand Org!

108 X 5*vs.

8 X 1

* 540 vs. 8

ERP, ECM, Web, Etc.

IT’S THE GIANT SUCKING SOUND

OF SLACK BEING EXTRACTED FROM

THE GLOBAL ECONOMY!

“The coefficient of friction associated with the grunge

of business is amazing!”

Michael Schrage

CCC Information Services!

Cemex and FDX!

FDX and Cisco!

“UPS used to be a trucking company with technology.

Now it’s a technology company with trucks.”

Forbes (1-00), on UPS’s $11B spent on IS in the 90s; UPS was Forbes’ “Company of the

Year”

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

PSF 1.0

Department Head

to …

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

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

drag”

or …

“Rock Stars of the ‘Age of Talent’ ”

C.I.O. to

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

*Chief Evangelist For Really Neat Stuff

Brand Inside

PSF 2:Brand Work!

“Reward excellent failures. Punish mediocre successes.”

— Phil Daniels,

exec, Sydney

But Does It Matter????

“On time, on budget … who cares?”

anon. seminar participant (4/99)

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

CEO, F100 financial services company (10-98)

Kaiser: 4.15.29

Liberty Ship

2 years

240 days

9 hours

4 days, 15 hours, 29 minutes

Epitaph from Hell …

Joe T. Jones

1942 - 2000

HE WOULDA DONE SOME

REALLY COOL STUFF

BUT …

HIS BOSS WOULDN’T LET HIM!

Characteristics of the “Also Rans”

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

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

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Brand Inside

PSF 3:Brand You!

DISTINCT … OR EXTINCT!

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

Michael Goldhaber, Wired

“If one quarter can’t make the journey, that’s the way it

has to be.”

Carly Fiorina (1-00/Forbes)

Personal “Brand Equity”

– I am known for …– My current Project is challenging me …– New things I’ve learned in the last 90 days include …– My public “recognition program”

consists of …– Additions to my Rolodex include …

– My resume is different from last year’s at this time …

R.D.A.

Rate: 15%?, 25%?Formal “Investment Strategy”/

R.I.P./Bold (WOW!)/MEASURE!!

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

Brand Inside

PSF 4:Brand Talent!

Issue Y2K

The Great War for Talent!

“Develop people quickly and effectively” … 5%

“Truly know who our strongest and weakest performers are” … 17%

Source: War for Talent research/ McKinsey & Co.

Talent War Y2K!

–All out!/ Time consuming!–Never ending!/ Unwinnable!–Includes everybody!/ Everybody’s

game! (“We’re all in sales.”)–Expensive!–Cool!/ WOW!/ Fun!/ Creative!–Strategic!/ Core competence!

TP’s Ideal Job:

Head of Housekeeping!

Talent = Brand

Brand Outside=

Brand Inside

Brand Outside

Context:

No “Commodities”!

Quality Not Enough!

“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than

a competitive advantage.”

J.D. Power

What’s Special?

“Customers will try ‘low cost providers’ because the Majors have not given them any clear

reason not to.”

Leading Insurance Industry

Analyst (10-98)

“We make over three new product announcements a

day. Can you remember them? Our customers

can’t!”

Carly Fiorina

The “10X/10X” Phenomenon

10 Times Better/

10 Times Less Different

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

ordinary.”

Barry Gibbons on “Nightmare No. 1”

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

people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with

similar prices, warranties and quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Pretzel Crumb-less-ness Plus …

“The Ritz Carlton Experience enlivens the senses, instills

well-being and fulfills even the unexpressed wishes and needs of

the guest.”

from the Ritz Carlton Credo

Granite Rock’s BHAG!

Nirvana!

- Nordstrom- Four Seasons- Amazon.com

- Adirondack Guide Boat- OXO Good Grips

- Ziplocs

Why?

Reliable!Cool!/ Surprising!

Friendly!/ Comfortable!Aesthetically pleasing!

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy 1:

Lead the Customer!

“The customer is a rear view mirror, not a guide to the future.”George Colony, Forrester Research

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

incremental advances.”Joseph Morone, President, Bentley College

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

“customer satisfaction” to “customer success” / “see

through accountability”[e.g.: commissioning of

plant, not delivery of equipment]

Source: GE Power Systems

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

Brand Outside

Strategy 2:Master

E-Commerce!

$30,000,000. = ???

Dell’s Web sales … daily (9-99)

Tomorrow Today: Cisco!

$7B of $10BSave $500M (service and tech

support)

C.Sat E >> C.Sat HCustomer Engineer Chat

Rooms ($1B?)

World’s Largest Extranet!

ANX/ Automotive Network Exchange/ “Data tone for the

auto industry”

Source: Philip Evans and Thomas Wurster, Blown to Bits

Welcome to

D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as

a business go down and

perceived service goes up because customers are conducting it

themselves.” Ray Lane, Oracle

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of the Customer”/ “The Customer Is in Control”

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

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

The user interface becomes the marketing materials, store front,

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

Jakob Nielsen, Designing Web Usability

Web Strategy: GE Power Systems

“Launch and Learn”/4 sites in 30 days/

Hire the best: Silicon Valley location

Brand Outside

Strategy 3:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

$3.3T + $1.5T = $4.8T*

* Larger than Japan!

Most Under-reported story!

9M*/20M+/$4T [> Germany]

* 400K in ’72; 132% since ’92;source: NFWBO, Cognetics

OPPORTUNITY

NO. 1!*

[* No shit!]

FemaleThink/ Popcorn

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

way, don’t buy for the same reasons. ...

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

they make connections.”

Not a Morality Play!

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

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

marketing to women entrepreneurs because it is a huge opportunity.”

Cherie Piebes

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

Brand Outside

Strategy 4:

Design Rules!

And Tomorrow …

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

quality. Tomorrow it’s design.”Robert Hayes

Message:Services are Not Intangible!

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

YOU ARE A DESIGNER!

Graceful language!

Susan Sargent Designs:

PLEASE COMPLAIN!Thanks for your order!

We dearly want everything to go p-e-r-f-e-c-t-l-y!

If the order was late. Or wrong.Or if any of the goods are damaged in the

slightest.Or if you’re just having a lousy day and

want to unload on someone …

Call our Customer Care Hotline!

Beauty Contest!

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

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

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

3. Repeat … every 15 days.

Brand Outside

Strategy 5:

It’s the Experience!

“Experiences are as distinct from services as

services are from goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is Theater & Every Business a Stage

“The [Starbucks] Fix” Is on …

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

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

customers come for refuge.”

Nancy Orsolini, District Manager

Safe, On Time and …

“We defined personality as a market niche. We seek to

amuse, to surprise, to entertain.”

Herb Kelleher, Main Man, LUV Airlines

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid

of him.”

Harley exec, quoted in Results-based Leadership

ExperiencingOxymoron: Respect from an

Airline!

I can cope with delays. I cannot cope with lies … especially Sins

of Omission.

IT IS DISRESPECTFUL TO ME AS A HUMAN BEING!

Brand Outside

BRAND POWER!

Brand?

DistinctionExcellence

Emotional “Signature”Trustworthiness

ConsistencyShorthand

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take up innovations will assist in the rise

and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

No Room for Brands?

NikeSaturnCNN

America OnlineCharles Schwab

StarbucksThe Gap

IntelEtc.

Brand = Trust!

“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”

The Economist

“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication

highway in the company. When companies make the shift to selling solutions, brands and

attitudes, communicating the company’s attitudes and values becomes the decisive parameter for success. It demands that you

find out who you are as a company.”

Jesper Kunde, Corporate Religion

Calling the Corporate Shrink!

“Organizational Psychotherapy”/

WHO WE ARE!

“FedEx is a collection of marketers with trucks and

planes, while UPS is industrial engineers with a collection of

truck and planes.”

Brian Clancy/ Forbes (1-00)

Brand = Special = Passion =

Connection = Caring*

* (Way) beyond “market research”

Brand Leadership

Lead Out Loud!

Message Bran[d]son:

Live the Brand!

ENTHUSIASM RULES!*

“I am a dispenser of enthusiasm.”/ Ben

Zander

“If you ask me what I have come to do in this world, I

who am an artist, I will reply, I am here to live my

life out loud.”Emile Zola

“If things seem under control, you’re just not going fast enough!”

— Mario Andretti

JUST GET MY STUFF ON TIME

AND DON’T BUST IT!