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LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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Page 1: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

LESSONS IN LEADERSHIP

#1/Y2K:

25 JANUARY 2000

PHILADELPHIA

Page 2: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Seminar Y2K

Brand Everything:Distinct or Extinct

Page 3: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

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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)

Page 5: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

No Wiggle Room!

“Incrementalism is innovation’s worst

enemy.” Nicholas Negroponte

Page 6: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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)

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Forces at Work

The Destruction Imperative!

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Forget > Learn

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

Dee Hock

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

— Kevin Kelly,

Out of Control

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Q: What do you do when you are a big,

dopey company and out of ideas?

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A: You merge with another big,

dopey company that doesn’t

have any ideas either.

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R: An incredibly big, incredibly dopey company

… going nowhere.

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“Talent” and a $2T enterprise??????

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“I feel betrayed. I bought stock in a company that was going to change

the world. I didn’t buy a big, fat, stupid conglomerate. And now I’ve

got one.”Alan Towers, consultant, quoted in Business Week

[BW: “The irony is that AOL Time Warner is a vertically integrated conglomerate. Not exactly the sort of nimble

competitor that will thrive in cyberspace.”]

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“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

Page 16: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

— Peter Job, CEO, Reuters

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“We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property.”

Art Reidel, CEO, Pharsight

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“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

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Dept. Head = Sports GM

Dept. Head = V.C.

Page 20: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Silicon Valley Success 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

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[ Fail. Forward.

Fast.

High-tech exec]

Page 22: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“R & D”

Intel’s venture fund: 275 investments, $3.5B

Source: Fast Company (12-99)

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[ Net World!

Act now. Analyze later.

Avram Miller ]

Page 24: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

EcoNets/Internet Zaibatsus

“The model is about partial acquisitions and ownerships that then form a whole. Each part has to have value separately, be able to raise capital separately, and

motivate employees separately. Corporations of the past never had that.”

Flip Filipowski, divine interVentures (Red Herring)

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“The brick and mortars will die, no matter what. … So you have to take

your best employees and best businesses and spin them off and just own 40 percent of everything

that’s left. Do that and you survive.”

Flip Filipowski, divine interVentures (Red Herring)

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“With the arrival of the Internet, corporate control has completely disappeared. Business today is about all kinds of companies participating to make something happen. Nobody knows any more what the products will do and what the markets will be. Markets define

themselves. You have to be able to react to them organically….

“Control is an illusion. I don’t think that it ever existed, but now even the illusion is gone. As a result, we’re

experiencing the rebirth of intuition.”

Avram Miller

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DYB.com*

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*DestroyYourBusiness.com (GE)

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“It used to be that the big

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

Venture Partners)

Page 30: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[E.g.: Craig Venter/Celera Genomics]

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The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Page 32: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“But what if [former head of strategic planner at Royal Dutch Shell] Arie de Geus is wrong in

suggesting, in The Living Company, that firms should aspire to live forever? Greatness is

fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a

business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic

frenzy of value creation during a short space of time, rather than to live forever.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Page 33: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

BW: “human brain has only a short time left as the smartest thing on earth”/ “subjugate

humanity by 2050”

Health Forum Journal: “In one generation or less, every element of health care, every

assumption, will be changed or gone.”/ “We are not aging gracefully.”

Dr. George Poste, SKB: 500 molecular targets in ’95 to 70,000 in ’99/ 35 compounds per year

to2M

Page 34: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

200.”

British Medical Journal (11-11-99)

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“I genuinely believe we are living through the greatest intellectual moment in history.”

Matt Ridley, Genome

Page 36: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“ALL OF THESE ‘CONVERSATIONS’ TODAY ABOUT ‘THE WEB’ WILL APPEAR SO BLOODY DAMN SILLY AND PEDESTRIAN TEN … FIVE? … THREE? … YEARS FROM NOW.”

— Tom Peters (11-99)

P.S.: Read Ray Kurzweil’s The Age of Spiritual Machines: When Computers Exceed Human Intelligence

Page 37: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

TTTTTurbulent Times!

Top 3 Americans > 48 poorest nations.

World200 = 41% of world wealth.

Source: Newsweek 12-99

Page 38: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Inside

PSF 1:Brand Org!

Page 39: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

108 X 5*vs.

8 X 1

* 540 vs. 8

Page 40: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

ERP, ECM, Web, Etc.

IT’S THE GIANT SUCKING SOUND

OF SLACK BEING EXTRACTED FROM

THE GLOBAL ECONOMY!

Page 41: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The coefficient of friction associated with the grunge

of business is amazing!”

Michael Schrage

Page 42: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

White Collar Revolution(Finally!!)

90% … in 10 years!PSFs ….. All!

Brand Yous … All!WOW Projects … All!

Page 43: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Cemex and FDX!

Page 44: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

FDX and Cisco!

Page 45: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

CCC Information Services!

Page 46: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Assetless Company”

J.B.

Page 47: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

RR on 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.”

Page 48: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon

* ’twixt docs, patients and providers; $250B in waste (?); source: Michael Lewis,

The New New Thing

Page 49: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

Page 50: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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”

Page 51: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Hewitt & HMO e-bids!

Page 52: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Don’t own nothin’ if you can help it. If you can, rent your shoes.”

F.G.

Page 53: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

R&D Outsourcing/ Big Pharma

3:1+ (70% now; 5% in 5 years)

1:2+ (5% now; 20% in 5 years)

Source: IN VIVO

Page 54: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ 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]

Page 55: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

PSF 1.0

Professional Service Firm Conversion Kit /

Release 1.0

Page 56: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

PSF 1.0

Department Head

to …

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

Page 57: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Credo

“WORK WORTH

PAYING FOR”

Page 58: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

drag”

or …

“Rock Stars of the ‘Age of Talent’ ”

Page 59: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Real” PSF …– Think Inc. (Mindset = Step No.1!)– Clients rule! – Engage Clients in deep dialog/ “Join us

in an Adventure”– Lead Clients!!!!!!!/ Fire duds!– Work = WOW Projects (100%!)– Think impact!/ Embrace politics!– Practice serial monogamy! – Master “the economics”!

Page 60: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Real” PSF …– WE HELP PEOPLE!

– Co-habit with the Client!

– Create a Culture of Urgency!

– Love thy Support Staff!

– You need a Methodology!

– Obsess on R&D!

– BECOME A “CONNOISSEUR OF TALENT”!

Page 61: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Real PSF …

WE OWN THIS PLACE!THIS IS COOL STUFF!

WE ARE THE WORLD!*

*Why no books on “Cool Finance Depts.”?

Page 62: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

The “7Ps” of PSF 1.0

Projects!Passion!

Provocation!Partnership!

Politics!Professionalism!

Performance!

Page 63: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

C.I.O. to

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

Page 64: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

*Chief Evangelist For

Really Neat Stuff

Page 65: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand?

DistinctionExcellence

Emotional “Signature”Trustworthiness

ConsistencyShorthand

Page 66: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Inside

PSF 2:Brand Work!

Page 67: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Reward excellent failures. Punish mediocre successes.” Phil Daniels, exec, Sydney

Page 68: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

But Does It Matter????

“On time, on budget … who cares?”

anon. seminar participant (4/99)

Page 69: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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)

Page 70: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

WOW Project Anatomy

I. Create!II. Sell!

III. Implement! IV. Exit!

Page 71: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

I. Create!

Reframe! THERE ARE NO “SMALL” PROJECTS!

Observe & Record!!Head for the trenches!

You gotta love it!

Measure: WOW!, Beauty, Raving Fans, Impact!

Build a no-baloney Business PlanCreate community. Now!

Obsess on … the End User. Now!

Page 72: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 73: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

Page 74: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Kaiser: 4.15.29

Page 75: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Liberty Ship

2 years

240 days

9 hours

4 days, 15 hours, 29 minutes

Page 76: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

WOW Project “Acid Test”

Can you explain it - with zest -

to your 14-year-old?

Page 77: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

The “Alumni Meeting” Test!

Page 78: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Every project we take on starts with a question: How

can we do what’s never been done before?”

Stuart Hornery, CEO, Lend Lease

Page 79: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

E.g.: WOW Scale

1. … Dull as dishwater.

5. … Gets the job done.

7. … “Good work!”.

10. … A serious “Braggable”!

Page 80: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

II. Sell!

Master “The Pitch”!Build Buzz. Consciously.

Network maniacally!Preach to the choir!

Forget your enemies. [Surround and marginalize!]Money kills!

SELL, SELL, SELL! [“I live to brief.”]

Page 81: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

III. Implement!

- Live, eat, sleep … Quick Prototype-Play!

- Keep on recruiting! (Sell!)- Obsess on the End User Community! (Sell!)

- Become a Milestone Maniac! / a Timeline Tyrant! / a List Freak! / find Ms. Last 2%!

- Appoint a Marketing Director!- Keep the WOW! front and center!

Page 82: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Culture of Prototyping

“Effective prototyping may be the most valuable core

competence an innovative organization can hope to

have.”

Michael Schrage

Page 83: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 84: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Prototyping Logic/Magic

1. Start Doin’ Stuff!

2. “Doin’ Stuff” Launches a Rich Dialogue!*

* No “stuff” = No dialogue!

Page 85: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Prototyper’s Laws

Define 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.]

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Secret No. 1: Go horizontal: Find a (one!) “line” ally in “the Boonies”

Secret No. 2: “Powerless” allies are Cool!

Secret No. 3: Passion Rules!Secret No. 4: Become a Prototyping

Maniac! Secret No. 5: Embrace Politics /

“Community Organizing”!

Page 87: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Reference:

Rules for Radicals, Saul Alinsky

Page 88: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Secret No.1: Angel/Investor/Banker Relations

Jaw Jaw Jaw Jaw Jaw

Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw

Page 89: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Secret No.2: Angel/Investor/Banker Relations

Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw Jaw

Page 90: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

IV. Exit!

“Sell out!” / Embrace “The Suits”!Recruit a passionate Ms./Mr.

Follow-up!Seed your freaks into the

mainstream!Celebrate!

Exit!

Page 91: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 92: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Epitaph from Hell …

Joe T. Jones

1942 - 2000

HE WOULDA DONE SOME

REALLY COOL STUFF

BUT …

HIS BOSS WOULDN’T LET HIM!

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

Alvah Simon, North to the Night

Page 94: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

T.T.D.: Now!– List all your 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.

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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

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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)

Page 97: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Astonish me!” S.D.

“Build something great!” H.Y.

“Immortal!” D.O.

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[We are not trying to “WOW you up.”

We think you are/have WOW.

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

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Seminar Y2K

MESSAGE: THE WORK MATTERS!

Page 100: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

3) Press foot firmly on the throat of mediocrity.

Source: Mercedes ad

Page 101: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Inside

PSF 3:Brand You!

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“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

Page 103: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 104: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

has to be.”

Carly Fiorina (1-00/Forbes)

Page 105: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand You Basics– You have no choice!– Inc. yourself (at least in spirit)– Embrace WOW Projects!– Words matter: WOW!– Obsess on Clients! (Cap “C”)– Mastery rules!– Work Worth Paying For!– Build your product line!

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Brand You Basics

–Think … ROLODEX!!!

–Collect freaks!

–Brand = Toastmasters

–Brand = Trust Mark

–Renewal Rules!

–Brand You = Leader (age 18 or 78)

Page 107: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Personal “Brand Equity” Eval

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

consists of …– I am known for …– Additions to my Rolodex include …

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

Page 108: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

They “Get it”?!– stone mason– electrician– plumber– tiler– cabinet maker– contractor– blacksmith– well driller– blaster– sheep shearer– etc.

Page 109: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Icon Woman …

– Totally turned on by her work!– “It” matters / a WOW Project!– “It” is … COOL!– “It” is … BEAUTIFUL!– She is … in your face!– She is an … adventurer!– She is … CEO of her own life!

Page 110: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Icon Woman …

– She is … at least … a little funky!– Her curiosity is … insatiable!– She thinks screwups are …

as normal as breathing!– She hangs out with some …

seriously rad Dudes!– She is not God. She is not Bionic Woman. She

is … determined … to make a damned difference!

Page 111: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Well-behaved women rarely make history.” Anita Borg, Institute for Women and Technology

Page 112: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Icon Woman Meets the Web …– submits resume on the Web– recruited on the Web– hired on the Web– trained on the Web– creates and conducts projects with virtual

teams on the Web– manages project and client

followup on the Web– manages career/reputation-building

on the Web

Page 113: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The Brand Called URL”/Nathan Shedroff, Vivid Studios

“24 X 7 storefront devoted exclusively to The Brand Called You.”

NS

“Personal publicity represents the next big paradigm shift on the Web.”

Jerry Yang, Yahoo!

Page 114: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Temporary workers used to be at the low end of the workplace foodchain. …”

The Wall Street Journal

Page 115: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

R.D.A.

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

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

Page 116: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

R.I.P.

IS IT ... WOW!?

Page 117: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“There is an internal and an external pressure to keep doing the same thing. People liked it.

You got rewarded. So do it again! The same only different. So it

becomes something you have to fight.”

Michael Crichton

Page 118: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

R.I.P.10 … Major job change [new area of

concentration]; major offsite educational investment; extensive

sabbatical [oddball learning experience of > 2 months];

exceptional community project [presidency of fundraising drive, run

for school board].

Page 119: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

R.I.P.

5 ... Extensive course work in oddball area of passionate interest; major off-

the-job activity [community involvement, learn to play the cello,

study Chinese].

1 … Company training, as directed.

Page 120: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

R.I.P.

Use by yourself.Use with your mates.

Use [quantitatively?] as a measure of departmental/

P.S.F. renewal.Use in formal eval process.

Page 121: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ Training Y2K

Anytime, anywhere!

Whatever!

Concocted by the employee/

“Training Account”]

Page 122: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

HAVING SAID ALL THAT ...

Page 123: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to

the fourth-grade kids in Spring Valley who shined shoes the same

way he talked and listened to a

bishop or a college president. He was seriously interested in who you were and what you

had to say.”Sara Lawrence-Lightfoot, Respect

Page 124: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Assignment

Construct a 1/8-page or 1/4-page ad for Brand You … for the Yellow

Pages

Page 125: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“When was the last time you asked, ‘What do I want to be?’ ” Sara Ann Friedman, Work Matters

Page 126: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ How About It?

Replace your current evaluation process with

Yellow Pages ads.]

Page 127: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

Page 128: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Seminar Y2K

Message: Distinct … or

Extinct!

Page 129: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 130: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Inside

PSF 4:Brand Talent!

Page 131: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Issue Y2K

The Great War for Talent!

Page 132: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Develop people quickly and effectively” … 5%

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

Source: War for Talent research/ McKinsey & Co.

Page 133: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 134: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Alan Kay on PARC’s Bob Taylor

“He was a connoisseur of

talent.”

Page 135: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

A Connoisseur of Talent …

– Spends time on Talent!

– Becomes a student of Talent! – Puts Talent “on the agenda”!– Practices D.I.Y.– Uses Plain English! (If you want “sunny” … ask

for “sunny”!)– Creates Workspaces that foster energy,

entrepreneurship and creativity!– Recruits from oddball places! /

Recruits Oddballs!

Page 136: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Recruiting college students is a job for marketing, not HR.”

Fast Company, on Jeff Daniel, CollegeHire.com

Page 137: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 138: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Axiom: Never hire anyone without an aberration in their

background. (Find the One Ton Cookie Man!)

Page 139: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

A Connoisseur of Talent …– Recruits M.I. (Gardner: Logical-mathematical,

linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, intrapersonal-others)

–Recruits arts!– Becomes de facto C.D.O. (Chief Diversity Officer)– Turns the pay scale upside down! / Pays Talent!– Rewards & Promotes all on Talent

Development Skills!– Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

Page 140: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Every school I visited was participating in the systematic suppression of creative genius.”

Gordon MacKenzie

Page 141: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The school system is absolutely not designed for creativity. Quietness, going along with the flow, keeping order – this is what’s encouraged.”

Tom Yamokoski

Page 142: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Where do good new ideas come from? ...

That’s simple! From differences. Creativity comes from unlikely juxtapositions. The

best way to maximize differences is to mix ages, cultures and disciplines.”

Nicholas Negroponte

Page 143: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Attributes of Those Who “Made” the 10th Grade History Book

– Committed!– Determined to make a difference!– Focused!– Passionate! – Irrational about their life’s project!– Ahead of their time / Paradigm busters!– Impatient!– Action Obsessed

Page 144: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Attributes of Those Who “Made” the 10th Grade

History Book

– Made lots of people mad!– Flouted the chain of command!– Creative / Quirky / Peculiar!– Rebels!– Irreverent!– Masters of improv / Thrive on chaos

/ Exploit chaos!

Page 145: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Attributes of Those Who “Made” the 10th Grade History Book

– Forgiveness > Permission– Bone honest!– Flawed as the dickens!– “In touch” with their followers’ aspirations – Damn good at what they do!

Page 146: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Conformity is the jailer of freedom and the enemy of growth.” J.F.K.

Page 147: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Just Say “No” to “Grout”!

Participant: “Don’t you need ‘grout’ between the tiles?”

TP: “No!” [med staff, NFL Special Teams,waiters,

PFCs, cymbals player, bit parts, waiters]

Page 148: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The Electricity of Chaos”

“I refused to accept that our larger size would necessitate systems and

hierarchies. Our most important asset is chaos, which generates an amazing electricity, which in turn gives us the

energy and desire to push the boundaries for our clients.”

Jesper Kunde, Kunde & Co. [Corporate Religion]

Page 149: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ EVP,S.O.U.B. ]

Page 150: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

TP’s Ideal Job:

Head of Housekeeping!

Page 151: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The boundaries for acceptable weirdness have

dramatically expanded.”

Michael Schrage

Page 152: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ “From cradle to grave, the pressure is on:

BE NORMAL!”Gordon MacKenzie ]

Page 153: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“You say you don’t want emotional, volatile and unpredictable, just

imaginative. Sorry, they come in a package. I can give you a dedicated,

loyal, honest, realistic knowledgeable package, but the imagination bit will

be rather limited.”

Patricia Pitcher, The Drama of Leadership

Page 154: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Yes!

Director of Bringing in the Really Cool People

Page 155: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ All You Need to Know?

Chief Evangelist For Really Neat Stuff

Director Of Bringing In The Really Cool People]

Page 156: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 157: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Talent War Y2K!

–Basis of Brand!/ WHO WE ARE!

–Brand You within Brand Us!

–Encompassing!/ Cultural! (KEWLNESS: mine v. yours)

–Substantive!/ “The best Projects win!” [Cairo 12-99]

Page 158: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Talent = Brand

Page 159: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside=

Brand Inside

Page 160: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Emotional values are replacing physical attributes as the fundamental market influence.”

“This book is concerned with self-worth and belief.”

“In the international market, it is no longer products that compete, it’s concepts.”

“Only with a strong spirit at its foundation can a company achieve strong market position.”

Jesper Kunde, Corporate Religion

Page 161: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Creating a strong market position means more than focusing on brand

awareness. A strong marketing position means creating a company that delivers internally and involves

consumers externally.”

BJ Cunningham, Corporate Religion

Page 162: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

PSF Y2K Final Exam– Are you working with awesome/freaky peers?– Are you working with cool/pioneering Clients?– Are you a “player”?– Are you pushing the envelope and putting yourself at risk on

every project?– Are you doing WOW work? – Are you having fun?– Are a lotta “theys” mad at you?– Will you look back on “all this” as “the time of your life”?

Page 163: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

Context:

No “Commodities”!

Page 164: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

In the Beginning …

“The audit has become a commodity.”

Big 5 audit partner to TP

Page 165: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 166: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 167: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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)

Page 168: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“We make over three new product announcements a

day. Can you remember them? Our customers

can’t!”

Carly Fiorina

Page 169: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 170: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

The “10X/10X” Phenomenon

10 Times Better/

10 Times Less Different

Page 171: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

TP’s Campaign Y2K

Just say [shout]

“No!” to the “inevitable

commoditization” of anything.

Page 172: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Aarrgh!

“Quality is conformance to requirements, not goodness.”

Phil Crosby

Page 173: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

ordinary.”

Barry Gibbons on

“Nightmare No. 1”

Page 174: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 175: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“We want to create waves of lust for our product.”

Andy Grove (on the Pentium Processor)

Page 176: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“You do not merely want to be the best of the best. You want to be considered the only ones who do what

you do.”

Jerry Garcia

Page 177: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[What Jerry Should Have Said???

“You do not merely want to be the best of the best, you want to be considered in conformance with

requirements.”]

Page 178: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Lust Hierarchy

Satisfy … Conform to Requirements … Exceed

Expectations …Delight! … WOW! … Lust! …

ONLY ONES WHO DO WHAT WE DO!

Page 179: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[Nirvana!

- Nordstrom- Four Seasons

- Adirondack Guide Boat- OXO

- Ziplocs- baseballs

Page 180: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Why?

Cool!/Surprising!Reliable!

Friendly/ComfortableAesthetically pleasing]

Page 181: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

New Customer Offering at Virgin Must Be:

… of the best quality… innovative

… provide good value for money… challenging to existing alternatives

… add a sense of fun or cheekiness

Source: Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Page 182: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“We’re getting better at [Six Sigma] every day. But we really

need to think about the customer’s profitability. Are customers’

bottom lines really benefiting from what we provide them?”

Bob Nardelli, GE Power Systems

Page 183: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“customer satisfaction” to

“customer success”

Source: GE Power Systems

Page 184: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 185: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 186: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

Strategy 1:

Lead the Customer!

Page 187: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 188: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Early Customer Rejection

Post-Its [12 years!]Chrysler Minivans

VCRsFax machines

FedExCNN

Heart-assist pumpsEtc.

Source: Fortune

Page 189: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Good = Bad/ 1 of 30,000

“We are crazy. We should do something when people say it is

‘crazy.’ If people say something is ‘good’, it

means someone else is already doing it.”

Hajime Mitarai, Canon

Page 190: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 191: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The numbers [declining market share] don’t lie. Detroit’s single

biggest failure has been its unwillingness to innovate. It is less

risky to simply develop a new version of an existing product than to pioneer

a new category.”

Alex Taylor (Fortune)

Page 192: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Benchmarking, Perils of …

“The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a

sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out

and ends him on the spot.”

Mark Twain

Page 193: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

Page 194: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Golden Rule to “Platinum Rule”

Treat people [customers] the way THEY want to be treated!

Source: Bob Nardelli/GE Power Systems

Page 195: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

TP: DO UNTO OTHERS AS OTHERS WOULD LIKE TO HAVE DONE UNTO THEMSELVES!

Page 196: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 197: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

Strategy 2:Master

E-Commerce!

Page 198: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

$30,000,000. = ???

Page 199: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Dell’s Web sales … daily

Page 200: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

350,000 = ?????

Page 201: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

New items going on sale at eBay …

daily (12-99)

Page 202: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

2X = 100 days (Internet traffic)

2X = 9 months (network capacity)

Source: Red Herring (1-00)

Page 203: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Tomorrow Today: Cisco!

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

support)

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

Rooms($1B?)

Page 204: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

The Motley Fool Secret?

“Strangers helping strangers”“Fools’ Logic,” IW

Page 205: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

And Larry?

Page 206: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Business 2.0: “20 Industries About To Be Fossilized by The Net” (3-99)

Travel Agents ($2B now, $30B in 2003); Apparel (1-21); Autos (4-213);

Home Electronics (1-21); Paper and Office Supplies (1-65); Food (<1-54); Utilities (7-170); Computing (20-400);

Newspapers ($5B of $19B classifieds)

Page 207: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Cherry PickingVertical Markets

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut

Hook: community services (database, catalogs, forums, industry job bank,

etc.)

Page 208: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

World’s Largest Extranet!

ANX/ Automotive Network Exchange/ “Data tone for the

auto industry”

Source: Philip Evans and Thomas Wurster, Blown to Bits

Page 209: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Consumer [Health Care] Sovereignty!* E.g.:

“Empowered consumers influenced by medical advertising and educated by

information on the Internet are driving demand for new vision correction

options.”

Start Up (10-99)

* “Take your White Coat and … ”

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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

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“Autoweb. Take the Wheel.” Advertising Age

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Shop in your Underwear

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

Page 213: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my

universe!*

*No news: Eliza

Page 214: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Welcome back, Tommy!”

Page 215: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “The Customer Is in Control”

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“IT enables total transparency. People with

access to relevant information are beginning to challenge any type of

authority. The stupid, loyal and humble customer, employee or citizen

is dead.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Page 217: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Patricia Seybold’s “Basics”:The E-Customer Bill of Rights

Don’t waste my time!Remember who I am!

Make it easy for me to order and procure service!

Customize your products and services for me!

Source: customers.com

Page 218: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[ Cases: Customers.com

American AirlinesNational Semiconductor

HertzAmazon.com

Babson CollegeNational Science Foundation

Bell AtlanticWells Fargo

Cisco SystemsDellEtc.]

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“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

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Read This. No: INGEST This!

Jakob NielsenDesigning Web Usability:

The Practice of Simplicity*

*www.useit.com

Page 221: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

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Red Herring (01/00)

75% of online shoppers don’t complete their

purchase!

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Nielsen/Designing Web Usability

All Web projects are customer-interface projects!

Simplicity rules! Make it easy for customers to perform

useful tasks!Less “cool,” more useful!

Speed rules!Link … madly!

Page 224: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Nielsen/ Continued

Must work … on a small screen!Must work … w/o graphics loading!

“Scannability” rules! [Users pick out key words.]

Navigation page: No scrolling!Remember: 25% to 50% “successful use”

Page 225: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

Page 226: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Change … Or Die!

“Most of the brick and mortars look at the Internet as an add-on business … until they get a major scare. Then they either

change or die. … You have to put all your heart and soul in that direction, the way

Charles Schwab and Dell did.”

Flip Filipowski, divine interVentures (Red Herring)

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Web Strategy: GE Power Systems

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

Hire the best: SV location

Page 228: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Goodhome.com / 10 weeks!

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Ready.Fire!Aim.

Ross Perot, Wayne Calloway, Harry Quadracci, et al.

Page 230: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Choose, Damn It!

“I think the Internet is going to blow the business wide open.”

or/vs.

“I think the Web is a thing that has to be looked at carefully.”

Source: Home Accents Today (7-99, Atlanta)

Page 231: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

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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!

Page 233: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

Strategy 3:

Women Rule!

Page 234: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

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48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Page 236: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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)

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[“The Net hasn’t lived up to its hype. It’s a distant, cold, alien,

threatening world called ‘cyberspace.’ The challenge is to

make the Net into something intimate, warm, friendly, useful,

personal.”Carly Fiorina, CEO, HP @ Comdex ’99]

Page 238: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

* Larger than Japan!

Page 239: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Most Under-reported story!

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

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

Page 240: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

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1874?

Page 242: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Page 243: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Yikes? Ho-hum?

1970 … 1%

2000 … 50%

Page 244: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

OPPORTUNITY

NO. 1!*

[* No shit!]

Page 245: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

Page 246: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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.”

Page 247: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Men seem like loose cannons. Men always move faster through a store’s aisles. Men

spend less time looking. They usually don’t like asking where things are. You’ll see a man move

impatiently through a store to the section he wants, pick something up, and then, almost

abruptly he’s ready to buy. … For a man, ignoring the price tag is almost a sign of

virility.”

Paco Underhill, Why We Buy* [*Buy this book!]

Page 248: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“In many industries traditionally dominated by men – the music business is an example – there is a traditional product

orientation. It has been our very male goal to lure you into a store and quickly consummate the relationship with the transfer of a 44-kilohertz, stereo, 16-bit recording that you never replace. That is the transaction-based, satiated push world of yesterday.

Such a product world is based on consummation. The consummated ‘relationship’ is disconnected, whereas the

stimulated relationship is highly connected. …

“The feminine view of the world is very different. Why discharge a relationship with the sale of an object or the delivery of a

package. … Our future is this feminization of marketing, where the true value of content is to stimulate, not satiate. [The future

of the Web] is the perfect seller/buyer relationship: always connected and sharing information. [A] sale starts, not ends, a

relationship.”

Jim Griffin, Business 2.0 (1-00)

Page 249: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 250: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 251: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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 Sternberg/ IBM

Page 252: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Not!!

“Year of the Woman”

Page 253: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

Page 254: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“What kind of car does Mommy want?”

Page 255: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

Page 256: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 257: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Top 25 Cos. For Executive Women/Working Woman/1Y2K

Avon … Chas. Schwab … Scholastic … Fannie Mae … Dayton Hudson … Knight Ridder … Pitney Bowes …

Advantica … Gap … Nordstrom … Sallie Mae … Gannett … Golden West … Aetna … Mattel … IBM … SBC Comm. …

Merck … State Street Corp. … Sara Lee … Prudential … Baxter … P&G … WellPoint …

Xerox

Page 258: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Speaking of Enormous

[Missed] [Huge] Opportunities ...

Page 259: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 260: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Aging/ “Elderly’

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

“I’m in charge!”“Experiences” vs. Products

Design revolution!

Good source: Ken Dychtwald, Age Wave

Page 261: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort … Access … Respect!

Page 262: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[“Any student who combines an expertise in gerontology with, say, an M.B.A. or law degree will

have a license to print money.”

Newsweek ]

Page 263: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 264: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

Strategy 4:

Design Rules!

Page 265: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

And Tomorrow …

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

quality. Tomorrow it’s design.”Robert Hayes

Page 266: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 267: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Design is treated like a religion at BMW.”

Fortune (10/98)

Page 268: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Drop-dead Charm!

“The new Beetle fails at most categories. The only

thing it doesn’t fail in is drop-dead charm.”

Jerry Hirshberg, Nissan Design International

Page 269: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Object of Desire!

“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in

point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a

sculpture, an object of desire, something that you look at.”

Katherine McCoy, Michael McCoy, Illinois Institute of Technology

Page 270: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[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 that ends up expressing itself in successive outer layers of the product or

service.”Steve Jobs]

Page 271: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Check Out the Language:

“Tomorrow it’s design …”“Design is the only thing …”

“Design is … religion ...”“Drop-dead charm …”“Object of desire …”

Page 272: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“The company continues to run

behind the curve. They’ve got to get out and lead the

market in design.”Gerald Meyers, former chairman, American Motors, on GM (12-99)

Page 273: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 274: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

Page 275: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

One-sixth Second per Item!

“During the 30 minutes you spend on an average trip to the supermarket,

about 30,000 products vie to win your attention and ultimately to make you

believe in their promise.”

Thomas Hine, The Total Package

Page 276: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Design Moments!

Shopping cart =

2X heavy items

Source: Wall Street Journal (11-24-99)

Page 277: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 278: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Hmmmm(?): “Only” Words …

StoryAdventure

Smile FocusPlot

Passion

Page 279: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Message:Services are Not Intangible!

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

YOU ARE A DESIGNER!

Page 280: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Graceful language!

Page 281: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 282: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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.

Page 283: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

WEB Words: TP

NO CLUTTER!

Page 284: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

No Clutter! CNNSI.com developed an increasingly common

problem. In the midst of adding material, its design went bad. CNNSI became so packed with links, new sections and graphics that it actually became hard

to find something as basic as the score of last night’s ballgame. Then it got worse. The team tried

to make new graphic elements eye-catching enough to stand out from the site’s clutter. But the surfers

ignored them, thinking they were ads.”

Business Week [9-99]

Page 285: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Huge Opportunities [That Damn Few Are Pursuing!]

Women!The rapidly aging

population!Design!

Page 286: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 287: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

Strategy 5:

It’s the Experience!

Page 288: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 289: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“What’s the plot?”

Freeman Thomas, designer

Page 290: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

Page 291: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 292: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 293: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Mantra: “Any good can be ing-ed”

the driving experiencethe pumping experience

the sitting experiencethe reading experiencethe washing experiencethe cooking experience

Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & Every Business a Stage

Page 294: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“Cars are not simply to get you from place to place. They ought to be entertainment. We are sort of in

the entertainment business.”

J Mays, Ford

Page 295: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“This is the end of the pure product era. For instance, car

makers are beginning to understand that the car is a

platform for delivering services that drive the customer

experience.”Carly Fiorina, HP @ Comdex ’99

Page 296: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

[Experiencing:#1 Oxymoron:

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!]

Page 297: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Marketing Aesthetics

“managing aesthetics experiences” … “aesthetics strategy” … “marketing of

sensory experiences that contribute to the organization’s or brand’s identity” … “mapping strategic vision to sensory

stimuli”

Source: Marketing Aesthetics, Bernd Schmitt & Alexander Simonson

Page 298: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Look + Feel + Taste + Touch + Sound + Smell +

Texture + Color + Typeface + Etc. = EXPERIENCE*

* Bernd Schmitt & Alexander Simonson, Marketing Aesthetics

Page 299: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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!

Page 300: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand Outside

BRAND POWER!

Page 301: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

Brand?

DistinctionExcellence

Emotional “Signature”Trustworthiness

ConsistencyShorthand

Page 302: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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]

Page 303: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

No Room for Brands?

NikeSaturnCNN

America OnlineCharles Schwab

StarbucksThe Gap

IntelEtc.

Page 304: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

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

Page 305: LESSONS IN LEADERSHIP #1/Y2K: 25 JANUARY 2000 PHILADELPHIA

“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

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“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

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“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

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“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

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Calling the Corporate Shrink!

“Organizational Psychotherapy”/

WHO WE ARE!

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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’s evolving all the

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

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

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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

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WSJ: When you started J.Crew, what was your vision?

Emily Woods: It was a lot about wanting to design and sell clothes we

couldn’t find anywhere else.

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“Dare to be different. Make people notice. The world is

brimming with new competitors and look-alike products. How do

you stand out?”

James Daly, Editor, Business 2.0

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Brand = Special = Passion =

Connection = Caring*

* (Way) beyond “market research”

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“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

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“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

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“To succeed, we must stop being so goddamn normal.

In a winner-takes-all world, normal = nothing. People expect good stuff. They have become used to great value for money. And they can get that from almost all companies around the world. So, being great is no longer good enough. Customer satisfaction is not enough. To succeed, we have to surprise people. We have to attract and addict them. Attention is all. By focusing only on the hardcore aspects of

business, we risk becoming irrelevant. And trust us, irrelevancy is a much greater problem than inefficiency. The only thing

more difficult than learning to exploit the last taboo of emotion and imagination is learning to thrive without it. So, people and organizations of the world – come out. Or you will be

carried out.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

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Assignment Y2K

Write an essay on “Who we are.”*

* Jesper Kunde, Corporate Religion

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“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

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The Ten Rules of Radical Marketing

CEO must “own” the marketing function!Hyper-lean Mktg. Dept. (No filters!)

CEO hangs out with customers!Love + Respect your customers!

Just Say No … to market research!Hire only passionate missionaries!

Create a Community of users-customers!Emphasize one-to-one marketing tools!

Celebrate craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

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Brand Leadership

Lead Out Loud!

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Message Bran[d]son:

Live the Brand!

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ENTHUSIASM RULES!*

“I am a dispenser of enthusiasm.”/ Ben

Zander*TP on Bob Nardelli/GE Power Systems

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“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

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“If you want to be persuasive, you have to generate a high level of energy. It’s energy that makes you visible, that gives you

presence. I call it ‘performance energy,’ and it’s the basis of dynamic leadership.

There is nothing artificial about it. Performance energy is an authentic part of who you are. You

just have to access it.”

Martha Burgess, Theater Techniques for Business People

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“Warren, do you love being

President of the University of Cincinnati?”Paul Ylvisaker

“I wanted to be a University President. I

didn’t want to do University President.”Warren Bennis

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Ann R.’s Gospel– Show up!– Know your message!

–Put yourself at risk!

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(Personal) Accountability?!

WHERE WERE YOU DURING THE GREAT ENTERPRISE

REVOLUTION OF Y2K?

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“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

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BE ASHAMED TO DIE UNTIL YOU HAVE

WON SOME VICTORY FOR HUMANITY!

Horace Mann, founder, Antioch College

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“I’d rather regret the things I have done than the things I have not.”

Lucille Ball

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

Mario Andretti

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THE END