Architects, the AIA and the 5 Changes

Tom Peters

AIA/Charlotte/05.09.2002

All Slides Available at …

tompeters.comNote: Lavender text in this file is a link.

Prepping for Charlotte:

A week at … 47 Park

Street (With a view

of Grosvenor Square)

THE 5 CHANGES

The world changes.The work changes.The firm changes.

The talent changes.The client changes.

THE WORLD CHANGES.

“There will be more

confusion in the business world in the next decade than in any decade in history. And the current pace of

change will only accelerate.”Steve Case

THE WORK CHANGES.

A White Collar Revolution.

E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

2010 “Demographics”:

By 2010, full-time workers will be in the

minoritySource: MIT study (28August2000)

New World of Work

< 1 in 10 F500#1: Manpower Inc.

Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27M

Total: 31M-55MSource: Daniel Pink, Free Agent Nation

“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by

independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.”

Thomas Malone and Robert Laubacher

“Ebusiness is about rebuilding the organization from the

ground up. Most companies today are not built to exploit the Internet.

Their business processes, their approvals, their hierarchies, the

number of people they employ … all of that is wrong for running an

ebusiness.”

Ray Lane, Kleiner Perkins

“Suppose – just suppose – that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the

edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have

known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no

geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold

here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

Consequences for the built

environment: Richter 8.4 Time frame: 10 -

20 years.

E. g.: A low-rise world instead of a high-rise

world (9-11 plays to this as well)? Silicon Valley—or Redmond, RTP—as visual model?

Manhattan? Home offices & virtual collaboration rather than work offices &

physical collaboration? (Gilder vs. Peters/Forbes ASAP.)

“Talk to kids. Watch how they use such

tools as instant messaging, and you can

learn it all. Kids hold the clue to the future of

technology.” John Patrick, ebusiness guru, IBM

THE FIRM CHANGES.

Re-imagining the Professional

Service Firm Model.

The Big Day!

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersconsulting business!

“These days, building the best server isn’t enough. That’s the

price of entry.”Ann Livermore, Hewlett-Packard

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

Was: Bunch of Guys Who Make Circuit Breakers Division.

Is: GE Industrial Systems.

Gerstner’s IBM: Systems Integrator of

choice. Global Services:

$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,

aim for 200. Drop many in-house

programs/products. (BW/12.01).

“UPS wants to take over the sweet spot in the endless loop

of goods, information and capital that all the packages

[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics

manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

“No longer are we only an insurance provider. Today,

we also offer our customers the products and services that help them

achieve their dreams, whether it’s financial security, buying a car, paying

for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,

Farmers Group

“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public

companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will

transform the real estate market by turning those REITs into national brands. … Mr. Zell

believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.”—New York Times

(12.16.2001)

Omnicom: 57%

(of $6B) from marketing services

HP. Sun. IBM. GE/PS. GE/IS. (GE/AE. GE/MD.)

UTC. Farmers. Delphi. UPS/ FedEx/ Ryder.

Springs. Omnicom. IDEO. Accenture. Equity Office

Properties. RCI. Etc. Etc.

Message AIA: Eat Or Be Eaten.

PSF’s New “Product”/Bottom Line: The …

ENCOMPASSING EXPERIENCE.

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The Experience Economy:

Work Is Theatre & Every Business a Stage

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

“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

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an

entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

The “Experience Ladder”

Experiences Services

Goods Raw Materials

1940: Cake from flour, sugar (raw materials economy): $1.00

1955: Cake from Cake mix (goods economy): $2.00

1970: Bakery-made cake (service economy): $10.00

1990: Party @ Chuck E. Cheese (experience economy) $100.00

Message:

“Experience” is the

“Last 80%”

P.S.: “Experience” applies to all work!

Consequences for the built

environment: Richter 8.4 Time frame: 0 - 10

years.

E.g.: Welcome to the Age of Turnkey Lifetime Facilities

Management Service Package [EXPERIENCE!]

Provision? Only Question: Who’s in charge? The Architects? The mega-CAEs?

Accenture et al.? EOP?

“But, Tom, we’re already doing ‘it.’ ”

TP conclusion/question: You offer lots of services

(“hodgepodge” comes to mind”), but do you have a

“coherent experience message” ?????

“They [consumer goods company] have acquired a bunch of products,

which is what everyone is doing. But what’s the point,

the message, the story line, the Big Idea that

makes ‘it’ all hang together?” —Exec, major

consumer goods company

Bonus Rant: “Experience”

and … Architecture

“Experience” = 98% Interior &

Landscaping.

Duh: We “Live”

in interiors.

Enemy No. 1:

Sterile, inhuman

Influences: Jane Jacobs

… Christopher Alexander … Don Norman

“In this book, ‘It won a prize’ is the ultimate insult.” —Don Norman, The Design

of Everyday Things (DN: Prize-worthiness is inversely proportional to live-ability)

It all adds up to …

THE BRAND.

“WHO ARE WE?”

“Most companies tend to equate branding with the company’s marketing. Design a new marketing

campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how

clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO

I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To

put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”

Jesper Kunde, A Unique Moment

“WHAT’S OUR

STORY?”

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

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

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

that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

“Apple opposes, IBM solves, Nike exhorts,

Virgin enlightens, Sony dreams, Benetton

protests. … Brands are not nouns but verbs.”

Source: Jean-Marie Dru, Disruption

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)

2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)

3RD Law: DRAMATIC DIFFERENCE

Source: Jump Start Your Business Brain, Doug Hall

“WHY DOES MY DD MATTER

TO THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DRAMATIC DIFFERENCE TO THE

CLIENT ?”

Arch. Firms (of all sizes):

Woefully Under-

branded.

THE TALENT CHANGES.

Brand = Talent.

“The leaders of Great Groups love talent and know where to find it. They revel in

the talent of others.”Warren Bennis & Patricia Ward Biederman,

Organizing Genius

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report, Business Week, 11.20.00

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;

favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power

as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure

“rationality”; inherently flexible; appreciate cultural diversity.

Source: Judy B. Rosener, America’s Competitive Secret

Pathetic!

63 of 2,500 top earners in F500

8% Big 5 partners

14% partners at top 250 law firms

43% new med students; 26% med

faculty; 7% deans

Source: Susan Estrich, Sex and Power

AIA Firm Survey: Lic. Architects @ Firms: 13%.

Principals & Partners: 12%.

(TP comment: Pathetic Redux!) (Hey, you’re better than plastic surgeons.)

The Cracked Ones Let in the Light

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

among non-conformists, dissenters and rebels.”

David Ogilvy

“The A students work

for the B students. The

C students run the

business. The D students dedicate the buildings.” —Assertion to Kinko’s founder

Paul Orfalea from his Mom (Fortune/05.13.02)

THE CLIENT CHANGES.

Women

Roar!

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B

travel equipment)

Houses … 91%Consumer Electronics … 51%

Cars … 60% (90%)All consumer purchases … 83%

Bank Account … 89%Health Care … 80%

2/3rds working women/50+% working wives > 50%

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Women*: (1) Dominate the res. market. (2) Dominate education decision-making. (3) Dominate

health-care decision-making. (4) Dominate the Talent/HR office environment. (5) Own 9M bus.

*Guys still control the factory & mining environment.

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

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

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in

creating a relationship. Every place women go, they make

connections.”

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

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

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

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

EVEolution

“Women don’t buy

brands. They join them.”

EVEolution

STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s

power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders

about my fact-based conviction that women’s increasing power – leadership skills

and purchasing power – is the strongest and most dynamic force at work in the American

economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN

THE INTERNET!

Tom Peters

Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How

Retailing’s Most Successful Stay that Way”

Presenting Experts: M = 16;

F = ?? (94% = 272)

0

Stupid: “Amazing, now that I think about it. A bunch of

guys --developers, architects, contractors,

engineers, bankers--sitting around designing shopping centers. And the ‘end users’

will be overwhelmingly women!”

Atonement 101: 1. Purchase ticket to symphony … 7:30p.m.

show. 2. Drink three large bottles of water between 3p.m.

and 7p.m. 3. X-dress. 4. Wait in queue at Ladies at

Intermission. 5. Realize what total jerks you are. 6. Seize a

microphone and apologize publicly to every woman in the

hall.

Architecture.

Implication: Women may (TP: Do!?) have a very different concept of the

most important attributes of a facility/ campus/

workspace.

“Today, 80 per cent of objects are

unnecessarily macho. Yet it is plain: The intelligence of a truly

modern society must be feminine. … Apart from a machine pistol, I can’t think of many objects

which actually need to be extravagantly masculine.”

Philippe Starck

“We are culturally groomed … to associate certain

qualities with males and others with females: soft/hard, cool/warm, tough/delicate,

exterior/interior. And these qualities come in and out of favor in design. But in Western

architecture, the association of civilization in general with masculinity and the male body has

been strong and persistent. Modernism, neo-modernism, and minimalism have reinforced this

habit of thought.”—Harvard Design Magazine (Winter/Spring 2002)

Message (?????): Men

cannot design

for women’s needs.

THE 5 CHANGES

The world changes.The work changes. The firm changes.

The talent changes.The client changes.

Thank You!