Distinct or … Extinct Tom Peters Seminar2000 Fairfield 23 June 2000

Distinct or … ExtinctTom Peters Seminar2000

Fairfield23 June 2000

Welcome to Day No. 1 of THE

[NO BULL] NEW WORLD ORDER!

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

An Age of Passion:1 Year = 1.5 Wal*Marts

03.27.99: $167B03.27.00: $555B

P.S.: Wal*Mart = #8 in 2000

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)

64/24

Goal?

Welcome to the Land of the True Believers!

“We have the ability to turn the economy upside down, to enhance lives, and to drive

civilization forward.”

Michael Saylor,MicroStrategy

“It means nothing less than the total

reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPointFord + Yahoo!

Ford + Oracle [Now Covisint]

Ford + HP/WorldcomEtc.Etc.

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

T.T.D.sThe next slide is the first of many

“T.T.D.” activities. I.e.: Things To Do. These are by and large shorthand forms of training exercises I use.

Also: Most of these T.T.D. slides have accompanying Notes.(See following sldie.)

Tom Peters

T.T.D./True or False:

“incrementalism”

VERSUS

“innovation”?

Notes Page• This is a daunting issue. There is no “right answer.”

But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention.

• Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!

Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership



Forces @ Work I

The Destruction Imperative!

Forget > Learn

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

Dee Hock

“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman

Sachs’ Investment Policy Committee, answered: ‘I’m sure there are

success stories out there, but at this moment I draw a blank.’ ”

Mark Sirower, The Synergy Trap

[ Headlines 06.15.00: Your Call!

Bell Atlantic-GTE

vs.

Lucent]

“Talent” and a $2T enterprise??????

[Some people enjoy the corporate life.

Then again, some people enjoy nipple clamps.

Source: Ad tag line, FreeAgent.com]

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

Peter Job, CEO, Reuters

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco

Pentium III 800MHz: $42,893.00/#

Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

Dept. Head I = Sports G.M.

Dept. Head II = V.C.

G.M. = The Recruitment and Development of Top Talent.

[Period!]

V.C. = Bets on “Talent.” Bets on Projects. [Period!]

Silicon Valley Success [Failure?] Secrets

“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6

do okay; 3 do well; 1 hits the jackpot

Source: The Economist

Expected “Batting Average”?

Intel’s venture fund: 275 investments, $8B

Source: Fast Company , eCompany

Net World!

Act now. Analyze later.

Avram Miller

[TP to Chain Owner …

“Do 5 deals before you go home!”]

“Steve Ross had a wonderful philosophy: People get fired for

not making mistakes.”Bob Pittman

And for the 6-Person Group??

Send one “Cool Dude/Dudette” out to find something Cool, work with a Cool Customer, etc. [The “Micro-

Skunkworks Strategy”]

T.T.D.

Evaluate your portfolio of projects [and people]: Are

you placing enough interesting [long shot?]

bets?

Notes Page

• Be brutally honest!

• Hint: This holds for you and me as individuals as well as for our unit.

C.E.O. to

C.D.O.

The [New] Ge Way

DYB.com

“Change the rules before

somebody else does.”

Ralph Seferian, VP, Oracle

“It used to be that the big

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

Venture Partners)

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Paradox Redux

Atlanta: +113,600 = #1 metro area

Layoffs [major]: BellSouth, Lockheed, Coca-Cola

T.T.D.

Are You DYB.com-ing?

Notes Page

• So … what … exactly … are you doing to DESTROY what you [and yours] are today? List every Project that aims to ATTACK today’s “culture” and assumptions. Be specific!

Brand Inside

Brand Org: Lean, Mean, Linked &

Electronic

108 X 5vs.

8 X 1*

* 540 vs. 8

And Now the Equivalent …

White Collar Revolution!

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

RR on “Assetless” [J.B.] Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon/WebMD

* ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael

Lewis, The New New Thing

[ Incidentally …

CEO Jeff ArnoldAge: 30

First Start-up: Age 24]

“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s

the relentless rise of the quasi-adolescents who wield them.”

Michael Schrage

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

So does Enron![et al.]

Buzzsaw.com

Builders, Owners, Architects, Contractors, Suppliers

$4T industry

5,300 commercial bldg. projects’ specs on-line; +70 per day

And …

e-Builder.com, BuildNet.com,

EqualFooting.com [et al.]

12/31/00 (per Newsweek 04.24.00)

75% of U.S. universities will have on-line offerings/ 5.8 million students

“Unbundling” profs’ jobs (star lecturer, facilitator)/ Repackage “content”

as multi-media “event”

AAUP is angry! (Good news!)

355 studies: Equal results! (and one teachers union study

that disagrees!)

Election.com*

*Arizona Democratic primary, etc.

These are …

L.A.D.T.I.R.S.*

*Life-and-death-total-industry-reinvention-struggles

Cemex and FDX!

[Pervasive “Risk Markets”

“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to

install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which

neighborhoods you go. The premium you pay reflects your actual driving risk.”

Stan Davis & Christopher Meyer, futureWEALTH]

Brand Inside

Brand Work!

So what will be the Basic Building

Block of the New Org?

Why are there no books on how to create

a “Cool, Rocking, WOW-producing

Finance Department”?

New OrleansApril 2000:

Jazz Festival + NAPM

Welcome to the Y2K New Orleans Jazz

and Real Cool Purchasing Dudes

Festival!

You are the Rock Stars

of the B2B Age!

NAPM: Not “Purchasing”!NAPM: Not “Supply Chain Mgt.”

NAPM = TE/IR!*

*Total Enterprise/Industry

Reinvention!

Message: You are Re-invention Evangelists!

ChicagoNovember 1999:

SHRM

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

drag”

or …

“Rock Stars of the ‘Age of Talent’ ”

Every job done in W.C.W. is also done

“outside” … for profit!

Credo

“WORK WORTH

PAYING FOR”

PSF 1.0

Department Head

to …

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

The “7Ps” of PSF 1.0

Projects!Passion!

Provocation!Partnership!

Politics!Professionalism!

Performance!

C.I.O. to

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

*Chief Evangelist For

Really Neat Stuff

PSF 1.0*

Professional Service Firm Conversion Kit /

Release 1.0

*The Professional Service Firm50

“How long does ‘culture change’

take?”

What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

Culture Change is not “Corporate.”Culture Change is not a “Program.”

Culture change does not take “Years.”Culture Change does not start “Today.”

Culture Change starts Right Now!Culture Change

Lives in the Moment!Culture Change is

Entirely in Your Hands!

The “PSF” Bedrock …

The WOW Project!*

*See:The Project50

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

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)

WOW Project Anatomy

I. Create!II. Sell!

III. Implement! IV. Exit!

Create/Reframers’ Rules:

Rule 1: Never accept an assignment as given!

Rule 2: You’re never so powerful as when you are “powerless”!Rule 3: Every “small” project contains the entire enterprise

DNA!

VFCJ “Strategy”

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

T.T.D.: The Power of a Word

Consider … WOW!

G: How’d that herringbone pattern for the hearth come out?

T: Great! But the tile guy’d like to get his hands on you; it was a royal pain.G: But it looks good, right?

T: Fabulous.G: That’s what matters. I tell my guys, “It may be a lot of work, but think about it this way:

Would you bring your kid back, 10 years from now, to see the job?”

Sell, Sell, Sell!

Master “The Pitch”!

Repeat: “I am a salesperson!”

Read: Saul Alinsky’s Rules for Radicals [1971]

Implementation: A Culture of Prototyping

“Effective prototyping may be the most valuable core

competence an innovative organization can hope to

have.”Michael Schrage

“You can’t be a serious innovator unless and until you are ready,

willing and able to seriously play. ‘Serious play’ is not an oxymoron;

it is the essence of innovation.”

Michael Schrage, Serious Play

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

T.T.D./ Prototyper’s LawsDefine a small, practical test of something on a

page or less of text. Now.

Gather “found” materials … on the [very] cheap.

Find a/one partner-“customer” who’ll provide a test site.

Set a very tight deadline of about 5 days for the next concrete step.

Conduct the test! Debrief A.S.A.P.

Set the next test date. Now. [No more than 5 days hence.]

Notes Page

• The idea is to establish a “rhythm of prototyping” that defines every project.

T.T.D./ Secret No. 1: Forget “selling up”! Go horizontal: Find a (one!) “line” ally in “the Boonies”!

Secret No. 2: “Powerless” allies are Cool!Secret No. 3: Become a Prototyping

Maniac! Secret No. 4: Embrace Politics /

“Community Organizing”! Secret No. 5: Passion Rules! Get your

story in shape!

Notes Page

• Main Idea: YOU ARE NOT “POWERLESS.” Seek out allies in strange places … and get going! DO NOT WASTE TIME “SELLING UP.”

• Attitude: You are the Gandhi/King of your “mission.”

• So: IDENTIFY THE FOLKS YOU WANT TO PLAY WITH RE THAT INCREDIBLY COOL IDEA YOU HAVE!

K2K!




This is all I “know” in the

world!

Boss-free “Selling” of a WOW! Idea

Get a Zany [WOW!] IdeaShop it with a coupla good pals

Surface [using my network] a list of [operational] folks who might be

interested in playingCall, visit and choose a coupla prospectsEngage the prospects [they must “own”]

Concoct a rough plan and a prototype schedule Move forward [Ready. Fire! Aim.]

Keep on recruitin’Get the Test Customer to recruit some buds for Round

#2 tests [Meanwhile C#1 expands program]

Get going with Round #2 prototypesStart conscious “buzz building” [Let “the word” of

successful tests trickle out]Have the “line dudes” put on a demo for, say, a coupla

“cool” regional bossesEtc.Etc.

Have the growing Network of Converts initiate a Major Program Proposal

Etc.Etc.

Boss Advice: The “Poster Kids”/ “End Run” Strategy

Chat up a cross-section of the OrgDevelop a tentative list of Pioneers/“Skunks”

Hang with those Skunks, shake them down for “stuff I’ve long wanted to do”/Encourage

them to do it!Begin to showcase their developing results

[with your public stamp of approval] Dip deep[ish] and early-promote a Super Skunk

into the [New] Establishment]Incorporate the Skunks’ work into your Vision

Chatter/ Welcome ALL aboard!




SOOOO … HOW MANY OF YOUR COLLEAGUES ARE

“BACK HOME” AT WORK ON NO-BALONEY …

WOW* PROJECTS!

* WOW = Will be remembered fondly/

bragged about 5+ years from now

Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

“Death is only one of many ways to lose your life.”

Alvah Simon, North to the Night

T.T.D.: Now!– List all projects– Carefully describe a “WOW Outcome” for you

and the Client– Score (!) all projects on WOW, Beauty, Impact,

Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that

emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points

Notes Page

•DO IT! •NOW!

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

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)

[We are not trying to “WOW you up.”

We think you are/have WOW.

We are trying to give you permission to be WOW.]

1) Turn ignition key.2) Shift into drive.

3) Press foot firmly on the throat of mediocrity.

Source: Mercedes ad

Brand Inside

Brand You: Distinct …

or Extinct

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

Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].– 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 in the last 90 days include …

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

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

T.T.D./Assignment

Construct a 1/8-page or 1/4-page ad for

Brand You … for the Yellow Pages

Notes Page

•THIS IS A BIG DEAL. TAKE IT SERIOUSLY. [“Yellow Pages ads” are the centerpiece of our formal Brand You training programs.]

[ T.T.D.: How About It?

Replace your current evaluation process with

Yellow Pages ads.]

Notes Page

• NO BULL! Some of our Clients have gone this far. And report stunning results. If you can’t do this formally, try it informally.

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

T.T.D./Your R.I.P.

IS IT … FORMAL? IS IT ... WOW!?

Notes Page

• We think “R.I.P.s” are imperative! So … please take these two questions seriously and literally!

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

Stan Davis & Christopher Meyer, futureWEALTH

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

“Everything can be taken from man but one thing: the last of human freedoms - to choose

one’s own attitude in any set of circumstances, to choose

one’s own way.”Victor Frankl, Auschwitz survivor

“I am an American, Chicago born, and go at things as I have taught myself, free-style, and will make the record in my own way.”

Saul Bellow, The Adventures of Augie March

America[ns] The … Beautiful Re-inventors

Ben F.Ralph W.E.

Dale C.N.V.P.

Werner E./EST“Tony R.”/“Coals Dude”

Stephen

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

It’s Girls, Stupid!

1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in

high-level math and science courses

More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in

higher numbers

Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)

Source: The Atlantic Monthly (May2000)

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

T.T.D./N.S. Message …

Look for ways to enhance women’s leadership role!

It makes sense!

Brand Inside

Brand Talent: The Great War for Talent

Issue Y2K

The Great War for Talent!

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“The market’s being divided up right now. We’re in a

tough competition [with the U.S. and the U.K.] for

the best brains.”Gerhard Schroeder, on Germany’s new

tech immigration policy[Frankfurter Allgemeine/06.02.00]

Tomorrow’s Headlines

“Molecular biologists are up 3 points, economists

down 1/4, in moderate trading”futureWEALTH, Stan Davis and

Christopher Meyer

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

Talent war, Web-speed!

Every resume or employment question that comes to Lucent via

the Web gets answered in 30 minutes or less. [24/7.]

Red Herring [06.00], on Lucent Director of

Recruitment Jim Baughman

Dudes With ’Tude“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

Axiom: Never hire anyone without an aberration in their

background! [Find the One-ton

cookie Guy!]

“He grew his hair long, played guitar in a rock band, chased

girls, got into trouble. At age 17 he was flogged by his house

master, who described him as ‘the most difficult boy I’ve ever

had to deal with.’ ”

Solution?

Slip Ritalin into his food …

Or …

Elect Him Prime Minister

Tony Blair*

*talk/May 2000

“Conformity is the enemy of freedom

and the jailer of growth.”

J.F.K.

Yes!

Director of Bringing in the Really Cool People

All You Need to Know?

Chief Evangelist For Really Neat Stuff

Director Of Bringing In The Really Cool People

T.T.D.

STEAL THESE TWO JOB TITLES!

Brand Outside=

Brand Inside

Talent = Brand

Reprise: Brand Inside

The White Collar Revolution & The Web [90% poleaxed, CDO, Healtheon/WebMD, Buzzsaw.com]

PSF as Building Block [Work Worth Paying For, Real Cool Purchasing Dudes]

Work Worth Paying For = WOW Projects!

Brand You [Everybody!]

The Great War for Talent! [Lookin’ for Dudes with ’tude]



Forces @ Work II

The Commodity Trap

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

Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

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 ‘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 and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

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”

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

Nirvana!

- Nordstrom- Four Seasons

- Adirondack Guide Boat- OXO Good Grips

- Ziplocs- Power Point

Why?

Cool!/Surprising!Reliable!

Friendly!/Comfortable!Aesthetically pleasing!

T.T.D.

What words do you & yours use to describe Customer

Contentment? [Way] beyond “satisfaction”?

[DO SUCH WORDS MATTER?]

Notes Page

• PLEASE [REDUX]: PAY LOTS OF ATTENTION TO WORDS … AND THE EMOTIONAL “SIGNS” THEY CONNOTE. [TomWorld: What applies to a Detroit Red Wings “performance” ought to apply to a “Purchasing Dept. performance”!

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!Net: 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

Early Customer Rejection

Post-Its [12 years!]Chrysler Minivans

VCRsFax machines

FedExCNN

Heart-assist pumpsEtc.

Source: Fortune

“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

“Lead” customers!

K2K redux!

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

T.T.D./Sooooo…

Are you pushing your customers? [Internal or

external.] ARE YOU ENGAGING THEM IN A

JOINT VENTURE-JOURNEY INTO TOMORROWLAND?

Notes Page

• No bull: Evaluate EVERY Client Relationship. Is EVERY CP/Client Project a “test”? That is, an effort to explore Uncomfortable-But-Important-Stuff?


S1: Lead the Customer!

S2: Master E-Commerce!S3: Women Rule! (and the elderly)



Brand Outside

Strategy 2:

Use E-Commerce

to Re-invent the Business!

?????

$35,000,000.

Dell’s Web sales … daily

Tomorrow Today: Cisco!

90% of $14.4B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

Chat Rooms/Collaborative Design ($1B “free” consulting)

And Larry?

Service Call Center

$300.00 per transaction to $1.50

Savings: $550,000,000.00

Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B addnl this year]

B2B

1999 – 2004: 50X

2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)

T

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

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

Psych 101: Strongest Force on Earth?

My need to be in perceived control of

my universe!

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

The Supply Side …

The Age of the ChoiceboardThe War of the Choiceboards

Source: Adrian Slywotzky, HBR 1-2/2000 [<1%]

“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

“Most companies would do more business on the Internet if they

fired their entire marketing department and replaced it with

people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00)

75% of online shoppers don’t complete their

purchase!

“Even if executives of established businesses grasp the impact of new

technologies … they still face a massive competitive disadvantage precisely

because they are incumbents. … They do complex financial calculations and get

bogged down in internal political debates. Insurgents have no such

inhibitions.”

Philip Evans & Thomas Wurster, Blown to Bits

“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!

No Room for “Competent”* Sorts

Beer WholesalersPersonal Trainers [FitLinxx]

Financial PlannersCar Dealers

* LVA, “M”VA … vs. HVA [Web-enhanced]

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

“E-business is the final nail in the coffin

for bureaucracy at GE.”

Jack Welch/GE Annual Report 2000

[ Words to Live By …

“Hierarchy is an organization with its face

toward the CEO and its ass toward the customer.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business]






Brand Outside

Strategy 3:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

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

* Larger than Japan!

Most Under-reported story!

9M*/28M(1 of 4)/$3.6T [> Germany]

* 400K in ’72; 132% since ’92

Sources: NFWBO, Cognetics, Business Wire (030600)

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,

finances, education.

Source: Business Week (11-99)

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874?

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*

[* No shit!]

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.”

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

Q: Why do guys like pagers?

A1: Sense of importance [Pager Dude]

A2: Cubicle Slaves’ replacement for “real guys” tool belts

Q: Why do women like pagers?

A: Get the news A.S.A.P. if her child is in the Nurse’s Office

Q:Why do women hate pagers?

A: They find nothing romantic about wearing a Stetson wrench or Stanley hammer attached to their waist! [Note

the pager’s clip-on device … guys ]

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

Weight Watchers International “Model”

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

Not!!

“Year of the Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“What kind of car does Mommy want?”

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

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

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. PLEASE: THINK ABOUT IT!

“If we are single, they say we couldn’t catch a man. If we are

married, they say we are neglecting him. If we are divorced,

they say we couldn’t keep him. If we are widowed, they say we

killed him.”

Kathleen Brown, on the joys of female political candidacy

Psssst! Wanna see my “porn”

collection?

Speaking of Enormous

[Missed] [Huge] Opportunities ...

74/55

“At each stage of their lives, the needs and desires of the baby

boomers have become the dominant concerns of American business and popular culture. If you can anticipate

the movement of the baby-boom generation’s life-span migration, you

can see the future.”Ken Dychtwald, Age Wave

Aging/“Elderly”

2X growth rate$$$$$$$$$$$$

“I’m in charge!”

Good source: Ken Dychtwald, Age Wave

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!






Brand Outside

Strategy 4:

Design Rules!

All Equal Except …

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

technology, price, performance and

features. Design is the only thing that differentiates one product

from another in the marketplace.”

Norio Ohga

“Design is treated like a religion at BMW.”

Fortune (10/98)

Design as Soul

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

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

meaning of design. Design is the fundamental soul of a

man-made creation.”Steve Jobs

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

The I.D. [International Design] Forty*

Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …

Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …

Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.

* List No. 1, 1999

Lady Sensor, Mach3, and …

$70M on developing the CrossAction toothbrush

23 patents, including 6 for the packaging

Source: www.ecompany.com [06.00]

http://www.ecompany.com/



Design as Strategic Tonesetter

Starwood’s W

Message:Services are Not Intangible!

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

YOU ARE A DESIGNER!

T.T.D./“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.

Notes Page

• DO THIS! USE MY TERMS! [Beauty … Grace … Clarity.] Be quantitative. [PLEASE.]

T.T.D./Design “Awareness”!

STEP No. 1: NOTEBOOK![Start recording the awesome

and the awful.]

Notes Page

• THIS IS MY “SECRET.” I am not “artistic.” But … I did teach myself to be … CONSTANTLY AWARE. The Key: My [simple] notebook! [I’VE NOW BEEN “RECORDING” FOR ALMOST TEN YEARS!]

“Sometimes I have episodes of wild fury in rental cars. It’s not road

rage. It’s more like design rage.”

Susan Casey, www.ecompany.com

Most Recent Entry/06.22.00

The “manual …

HP LaserJet 1100






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

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

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

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

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

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

PlotWilliams Sonoma = 6 [was 10]

Crate & Barrel = 8Sharper Image = 9+

Smith & Hawken = 8+Vermont Country Store = 8+

Garnet Hill = 9L.L. Bean = 5 [was 9+]

Land’s End = 7+Colonial Williamsburg = ?

T.T.D.

What’s the plot?

Notes Page

• WHAT IS YOUR STORY? [Be specific!] Message: This applies to every [Finance] project!

And Now For A Nod To 1/7th of Our Economy!

“Medicine looks likely to change more in the next 20 years than it has in

the last 200.”

British Medical Journal (11-11-99)

[Welcome to Day No. 1 of THE

[NO BULL] NEW WORLD ORDER!]

Health Care Tsunami

Prevention/Wellness/FitnessProactive Engineering/Gene

“stuff”[Blockbuster-Bazooka to Specific-Sniper’s Rifle]

Holistic/Homeopathic/Non-traditionalPatient-centric/Web-led

No waste [Healtheon/WebMD et al.]Etc.

TP 03.26.00: AMA Riff

1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”

YES, NURSE. ME GOOD PUPPY DOG.

1995: “HMO will take care of you.”

BULLSHIT.

2005: “I will take care of me. I’d like your expert help.”

Are You Fighting Yesterday’s War?Docs don’t know it all.

There are a lotta bad docs. There are a lotta bad medical decisions.

“Hospitals” kill far too many people. (Bad decisions, bad execution.)

Systemic waste is stratospheric. (Still.)

Patients are getting (much) smarter.Patients have had it with HMOs. (And Docs with the

“white-coat syndrome.”) You are not smarter than I am. (I am your partner.)

You are not busier than I am. (!!!!!)Patients want more data. (And can readily get it.)

Boomers will control their lives. Period. Medicine is about to be overwhelmed with a tsunami!

Reprise: Dawn of an Age of Self-Determination? E.g. …

Brand You [end of corporate paternalism]

D.I.Y. [the Internet]Boomers [“I’m in charge here!”]

Health [“I’m in charge here!”]






Brand Outside

BRAND POWER!

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.

What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and

you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded

sub-$200 watch market, they made it into a brand name, named after the most

irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they

can do it, we can do it.’ ”

Barry Gibbons

“Salt is salt is salt. Right? Not when it

comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably

the same as many other products on the shelf.”

Tom Asaker, Humanfactor Marketing

T.T.D./Calling the Corporate Shrink!

“Organizational Psychotherapy”/

WHO WE ARE!

Notes Page

• This is The Big Enchilada:

SPEND – lotsa – TIME ON IT!

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology.

Stories create the emotional context people need to locate themselves in a larger experience.”

Brand = You Must Care!

“Success means never letting the competition define you. Instead you have to define

yourself based on a point of view you care deeply about.”

Tom Chappell, Tom’s of Maine

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and

diversity, choices become increasingly informed by belief. [Consumers] want to

know who is behind the products that they buy. They want to know the

company. They want to know what you think.”

Jesper Kunde, Corporate Religion

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Brand = Special = Passion = Plot =

Compelling Mythology = Cause =

Connection = Heart

T.T.D.: “How can I know what I think till I see what I say”*

Exercise : Write copy for a bookmark! (Etc.)

*Graham Wallas, The Art of Thought

Brand Outside

Reprise






Lead the Customer: Why Tough

Guts!Failures!

Re-invention via ecommerce: Why Tough

Total commitment to total enterprise [and supply

chain] reinvention!

Yo, C.D.O.!!!!!!!!

Women’s Market: Why Tough

EncompassingAttitude

CULTURAL!

Design: Why Tough

True-believer-dom-shipEncompassing/Cultural

Ing-ing/Experience: Why Tough

Total Reorientation

Brand Power: Why Tough

Way of LifeForever!

Passion Rules!Touches Everything!It Am Me [Personal!]

Message :

Not for the Faint of Heart!*

*Weenies need not apply



Brand Leadership

Passion Rules!

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in

recruits.”

Burke Stinson, AT&T

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

Ann Richards’ Dogma

Show up!

Know your message!

PUT YOURSELF AT RISK EVERY DAY!

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti

Documents

Distinct or … Extinct Tom Peters Seminar2000 Fairfield 23 June 2000