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The Pinnacle of Excellence Practice Management Institute 2001 Commonwealth Tom Peters/06.14.2001. “There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case. - PowerPoint PPT Presentation
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The Pinnacle of Excellence
Practice Management Institute 2001
CommonwealthTom Peters/06.14.2001
“There will be more confusion in the business world in the next decade than in any decade in history.
And the current pace of change will only accelerate.”
Steve Case
“We are entering an era of no limits, with nothing to brake the cascade of human intelligence
unleashed by the Information Age. The Web essentially allows all the brains on earth to communicate and share insights in real time, around the globe, all the time.”
Jeffrey Young, Cisco Unauthorized
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
The [New] Ge Way
DYB.com
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
Brand Inside
Brand Org: Lean, Linked &
Electronic
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
White Collar
Revolution!
Automation+
75% of what we do: 40 “expert” decision rules!
Brand Inside
Brand Work: The Professional Service
Firm Model
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 … Etc. … Etc.
“ ‘Architecture’ is becoming a commodity, traded on
priceline.com. Winners will move up the value chain and become ‘Turnkey Facilities Management’ providers.”
SMPS Exec
Brand Inside
Brand Talent: The Great War for Talent
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, CEO, Enron
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy
Lasorda—P,26 games. Sparky Anderson—1 season.
Goal of the Year No. 1*: Find-Develop-Mentor
ONE Extraordinary Person.
*CEO, large professional services firm
“Talented people are less likely to wait their turn. We used to
view young people as trainees; now they are authorities. Arguably
this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
Enron
COO: Louise Kitchen, F, 29; created
EnronOnline as “Skunk Works”
“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
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Investors are looking more and more for a relationship with their
financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills
than are men.”
Hardwick Simmons, CEO, Prudential Securities
“Women speak and hear a language of connection and intimacy, and men
speak and hear a language of status and independence. Men communicate to obtain information, establish their
status, and show independence. Women communicate to create
relationships, encourage interaction, and exchange feelings.”
Judy Rosener, America’s Competitive Secret
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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, 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
Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
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
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
“The Age of the
Never Satisfied Customer”
Regis McKenna
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
Brand Outside
Strategy 2:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Consumer Electronics … 51%
Cars … 60% (90%)All consumer purchases … 83%
Bank Account … 89%Health Care … 80%
????
80%
Riding Lawnmowers
2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family
healthcare, finances, education.
Source: Business Week; Jupiter Communications
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 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
“Women Beat Men at Art of Investing”
Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of
stocks more often; women choose carefully and hold on for the long term)
Value Line: Top State* Investment Clubs 2000
8 … All male19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
Investment Club Returns
Women-only clubs 1997 … 17.9%Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
JBQ: Stop Treating Women Investors Like Idiots!
“Why all this focus on women and our lack of investment guts? A far greater problem, it seems to
me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide their mistakes from their wives.”
Source: Newsweek 01.08.01
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
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
Brand Outside
Strategy 3:
It’s the Experience!
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre & Every Business a Stage
“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
The “Experience Ladder”
Experiences Services
Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
Message: “Experience” is the
“Last 80%”“Experience” applies to
all work!
Brand Outside
Strategy 3A:
A Case in Point: The Four Seasons
“Practice Management”
“Lessons” from the Four
Seasons Boston
Why I Stay at the Four Seasons Boston
Comfort. (“It’s
good to be home.”)
Why I Stay at the Four Seasons Boston
The doorman. (Recognizes me.)
“The two most powerful things I know
in existence: a kind word and a
thoughtful gesture.”Ken Langone, CEO, Invemed Associates
Why I Stay at the Four Seasons Boston
The access to technology is
excellent. (I’ve trained them in this!)
Why I Stay at the Four Seasons Boston
The bottle of Chalone chardonnay they leave
for me. (They “remember.”)
Why I Stay at the Four Seasons Boston
The fact that the GM always puts his desk
chair in my room when I’m in town.
Why I Stay at the Four Seasons Boston
The fact that I feel okay arriving in shorts and a baseball cap. (Even
though they serve princes & sheiks.)
Why I Stay at the Four Seasons Boston
The clientele.
Why I Stay at the Four Seasons Boston
No hairs in the bathtub. (Operational
excellence.)
Why I Stay at the Four Seasons Boston
Responsiveness. (Operational
excellence.)
Why I Stay at the Four Seasons Boston
The Brand. (I trust Izzy.)
Why I Stay at the Four Seasons Boston
Trust.
Why I Stay at the Four Seasons Boston
The windows open. (Okay, call it an idiosyncrasy.)
Why I stay at the Four Seasons Boston
The view is great. (I am
sensitive to my surroundings … even in the midst of a one-night stand.)
Why I Stay at the Four Seasons Boston: Payback!
It ain’t free.
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE YOU [these days] ?”
TP to Client
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
“WHO ARE WE?”
WHAT’S OUR
STORY?
“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
“ WHY DOES IT MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DIFFERENCE TO THE CLIENT ”
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
#49
I. Personal Stuff …
Dare to Care!
“LEADERS CARE!” … “The true definition of leadership
is service.” … “genuinely care” … “Leaders CARE!” … “Leadership is service.” …
“LEADERS SERVE.”
Real!
“Leaders are living individuals whom employees can smell, feel,
touch their presence” [the elevator test] … “Leaders love their work. Their passion is infectious.” … “If you love what you do, it shows.
You can’t fake love and succeed.”
“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
II. Tactics …
“Leaders have a kid alive in them.” … “Leadership
is the PROCESS of ENGAGING PEOPLE in
CREATING a LEGACY of EXCELLENCE.” …
Priority #1
“To Don’t ” List
“Create a Cause, not a ‘business.’
”Gary Hamel, Fortune (06.00), on re-inventing a
company (Exemplar #1: Charles Schwab)
Ben Zander: “I am a dispenser of
enthusiasm.”
“Let’s make a dent in the universe.”
Steve Jobs