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Now ! Emerging Technology Conference Tom Peters/09.05.2001. HP-Compaq. - PowerPoint PPT Presentation
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Now!
Emerging Technology Conference
Tom Peters/09.05.2001
HP-Compaq
“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
“Acquisitions are about
buying market share. Our challenge is to create markets.
There is a big difference.” Peter Job, CEO, Reuters
HP: -18.6%Compaq: -10.3%
Dell: +4.4%
Message 2001: Only idiots pull in their [investment]
horns during a downturn.
My GOAL: Radicalize Audiences!*
*Hint: These are Radical times!
Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the
Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies that Are Built to Last Underperform the
Market
“Good management was the most powerful reason [leading firms] failed to stay atop
their industries. Precisely because these firms listened to their customers, invested aggressively
in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied
market trends and systematically allocated investment capital to innovations that promised
the best returns, they lost their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
“The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and
financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a romantic notion. Large companies are
incapable of ongoing innovation, of ongoing flexibility.”
“Increasingly, successful businesses will be ephemeral. They will be built to yield
something of value – and once that value has been exhausted, they will vanish.”
Fast Company (03/2000)
The [New] Ge Way
DYB.com
Brand Inside
Brand Work: The Professional Service Firm
Model
White Collar
Revolution!
So what will be the Basic Building
Block of the New Org?
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
Brand Inside
The Heart of the Value Creation Revolution:
PSF Unbound!
11 September 2000
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
[“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
HP … Sun … GE … IBM … UPS … UTC …
General Mills … Springs … Anheuser-Busch …
Carpet One … Delphi … Etc. … Etc.
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems (Home Depot)
“The primary strategic mission for [CEO Jeffrey] Immelt is to hasten GE’s transformation
from a low-margin manufacturer to a more lucrative services
company that sells solutions as much as stuff.”
Newsweek/09.10.2001 (Welch raised share of services revenue from 15% o 70%)
“In GE’s world there are fewer but bigger
customers, so there’s a
vital need to maximize the relationship.”
Newsweek/09.10.2001
“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. Sites to 6,000 NA dealers)
Brand Inside
Brand Action:Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
THE IDEA: Model F4
Find a Fellow
Freak Faraway
Heart of the Matter
F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.
And …
K2KK*S2SS***Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
Sales2001
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
Politics Rules!
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople in great technology companies can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!
BOTTOM LINE
The Enemy!
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
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Brand Inside
Brand Talent: The Great War for Talent
“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent (05.17.00)
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
Brand InsideReprise:
TOMORROW’S ORGS: Itinerant Potential
Machines
TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is
routine. Failing is normal … if you’re stretching. Want to “make their bones” in “the revolution.”
Love the new technologies. Well rewarded. Don’t plan to be around 10 years from now.
TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often needed). “We
aim to change the world, and we need gifted colleagues—who well may not be on our
payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT.
Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180
degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME
HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS
AND PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS ‘COOL’ IDEA?” Appreciate “market creation” as much as or more than
“market share growth.” ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN
PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates.
Ellison. Venter. McNealy. Walton. Skilling. Case. Etc.)
ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS
FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER. Including vendors and
consultants and … especially … PIONEERING CUSTOMERS—who will “pull us into the
future.”
TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all
outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share
this (radical) vision.
POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing
things.”
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Sameness Trap
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
“Customers will try ‘low cost
providers’ because the Majors have not given them any clear reason
not to.”Leading Insurance Industry Analyst (10-99)
Brand OutsideNew Technology/
Strategy 1:Use E-Commerce to
Re-invent Everything!
Dell’s OptiPlex Facility
Big Job: 6 to 8 hours.(20,000 per day)
Parts Inventory: 2 hours,
100 square feet. (Overall, 5 days vs. 50 to 90 days; target is
2.5 days)
Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early
1999: 30 times a day. Late 2000: 30 times per … minute.
Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s:
2 weeks, 2 per week. Late 2000: 5 such deals per day
Source: www.ecompany.com (1/2001)
Cisco!
90% of $20B (=$50M/day)Annual savings in service
and support from customer self-management: $550M
Secret Cisco: Community!
C.Sat e >> C.Sat H
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
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
“Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the
number of people they employ … all of that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
“Customer Service” is DEAD.“One-to-One” is DEAD.
Welcome to: ????[??? = We live together in seamless-
responsive harmony with all Members of the Value Chain. We Create together. We Fulfill together. We Learn together. We
Adjust together. All old categories – which imply separation and linearity and
hierarchy and do-it-to-themism – must die.]
Brand OutsideNew Demographics/
Strategy 2A:
Women Rule!
$4.8T > Japan
9M/27.5M/$3.6T > Germany
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
What If …
“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
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
Brand OutsideNew Demographics/
Strategy 2B:
Welcome to “Old World”!
“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
50+
$7T wealth (70%)/$2T annual income50% all discretionary spending
79% own homes/40M credit card users41% new cars/48% luxury
$610B healthcare spending/74% prescription drugs
5% of advertising targetsKen Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
Brand Outside
Strategy 3:
BRAND POWER!
“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions
“How likely are you to purchase this new product or service?” (95%
to 100% weighting by execs)
“How unique is this new product or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain
“WHO ARE YOU [these days] ?”
TP to Client
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Let’s make a dent in the universe.”
Steve Jobs