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Tom Peters Seminar2000 Distinct or …
ExtinctJacksonville24October2000
More at … tompeters.comSlides from this seminar.
Master Presentation, for in-depth.“Cool Friends” (referenced in seminar).
Discussions re this stuff.Calendar of events.
Etc.
When Mike Charles gets lonely, who does he talk to …
Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2%
milk. Tap keypad on door. Webvan.com delivers in hours. Next, he sends his
washer an email …Source: Business Week (09.00)
Um … Eduardo Kac and Alba, the glowing*
bunny rabbit!
*You can thank one selfless jellyfish and several French scientists!
Source: Rutland Herald (10.01.00)
Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
NOW THAT’S B-I-G!
“The period 2000-2002 will bring the single greatest change in
worldwide economic and business conditions since we came down from the trees.”
David Schneider & Grady Means, MetaCapitalism
“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)
“We are in a
brawl with no rules.”
Paul Allaire
S.A.V.
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge customers on the attack.
2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology
and products our customers need.4. Success is achieved by leading change,
not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“It used to be that the big
ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional
Venture Partners)
Progressive
“We don’t sell insurance anymore.
We sell speed.” – Peter Lewis
Digital cameras, wireless Net links,
etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!
Source: Business Week (09.00)
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Structure
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
“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
“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.
We buy the engineers and the next generation product. …”
John Chambers, Cisco
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
Lessons from the Bees!
Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into
smaller colonies which can grow value faster. What the bees are telling us is that the corporate
world has got it all wrong.”David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
“Talent” and a $2T enterprise??????
“THE CHRYSLER THAT DAIMLER BOUGHT IS DEAD. The recent resignation of Thomas Gale, the great Chrysler designer, brings that
home as nothing else does. This was the mistake Jurgen Schremp made when he bought Chrysler: He didn’t realize it was the people who counted,
not the factories, which were old, or the sales and profits, which can come and go. The people and
the leadership are the heart and spirit of the Detroit automaker and when they go, all that is
left are old factories and problems.”
Forbes [10.30.00]
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth, Lockheed, Coca-Cola
New Generation Dominates: Changes in Shareholder Value, 1995-1999
Dell, +$129B; Compaq, -$17B
Wal*Mart, +$145B; K-Mart, -$16B
Top 11% (of largest 1,000 firms), +$4.9T; other 89%, -$3.7T
+ GE- Lucent
- ATT- Xerox
- Qualcomm
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut … 10,000 Jobs”
“Middle-level and senior managers are expected to be
the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)
White Collar Revolution!
108 X 5vs.
8 X 1*
* 540 vs. 8 (-98.5%)
The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
Automation+
75% of what we do: 40 “expert” decision rules!
“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
“Don’t own nothin’ if you can help it. If you can, rent your shoes.”
F.G.
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, COO, Enron
Cisco, Dell =
Brand-owning companies who sell Customer
Satisfaction
Source: David Schneider & Grady Means, MetaCapitalism
RR on “Assetless” [J.B.] Sara Lee
“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available
with insights into the customer’s individual needs
and preferences.”
Advance Paradigm
Data on 165,000,000 prescriptions per year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)
“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to
install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which
neighborhoods you go. The premium you pay reflects your actual driving risk.”
Stan Davis & Christopher Meyer, futureWEALTH
Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
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.
New OrleansApril 2000:
NAPM
You are the … Rock Stars
of the B2B Age!
ChicagoNovember 1999:
HRMAC
“support function” / “cost center” / “bureaucratic
drag”
or …
Are you “Rock Stars of the
Age of Talent”
Every job done in W.C.W. is also done
“outside” … for profit!
Credo
“WORK WORTH
PAYING FOR”
“P.S.F.”: Summary
H.V.A. Projects (100%)Pioneer Clients
WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”
Point of View (Methodology)W.W.P.F. (100%)
When: Now!
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget … who cares?”
anon. seminar participant (4/99)
Measures
–WOW!–Beauty!–Raving Fans!–Impact!
T.T.D.sThe next slide is the first of many
“T.T.D.” activities. I.e.: Things To Do, shorthand forms of training
exercises I use. Also: Many of these T.T.D. slides, as
well as most of the “Stuff That Matters” section, have accompanying Notes. (Use Normal View to access.)
Tom Peters
T.T.D.: Now!– List all projects– Carefully describe a “WOW Outcome” for you
and the Client– Score (!) all projects on WOW, Beauty, Impact,
Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that
emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points
“Every man’s work is a portrait
of himself.”
Samuel Butler
Brand Inside
Brand You: Distinct …
or Extinct
2010 “Demographics”:
By 2010, full-time workers will be in the
minoritySource: MIT study (28August2000)
New World of Work
< 1 in 10 F500#1: Manpower Inc.
Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27MTotal: 31M-55M
Source: Daniel Pink, Free Agent Nation
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
Minimum New Work SurvivalSkillsKit2000
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Finishing SkillsEntrepreneurial Instinct
CEO/Leader/BusinesspersonMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
“You must realize that how you invest your human capital matters as much as how you
invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they
appreciate? How much will my portfolio of career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
“Knowledge becomes obsolete incredibly fast. The continuing
professional education of adults is the No. 1 industry
in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
“The Main crisis in school today is
irrelevance.”
Daniel Pink, Free Agent Nation
“Our education system is a second-rate, factory-style organization, pumping out
obsolete information in obsolete ways. [Schools] are simply not
connected to the future of the kids they’re responsible for.”
Alvin Toffler, Business 2.0 (09.00)
Seminar Y2K/Brand Inside
Message: Distinct … or
Extinct!
“The time seems appropriate to rethink the
notions of self and identity in this rapidly
changing age …”
Tara Lemmey, Project LENS, past president Electronic Frontier Foundation
America[ns] The … Beautiful Re-inventors
Ben F.Ralph W.E.
Dale C.N.V.P.
Werner E./EST“Tony R.”/“Coals Dude”
Stephen
Invent. Reinvent. Repeat.
Source: HP banner ad
T.T.D./Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the Yellow Pages
Brand Inside
Brand Talent: The Great War for Talent
The Case
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“Seller’s Market”: Tomorrow’s Headline*
“Molecular biologists are up 3 points, economists
down 1/4, in moderate trading”
*futureWEALTH, Stan Davis and
Christopher Meyer
“The ‘War for Talent’ is over … and ‘Talent’ has
won!”Ed Michaels, The War for Talent
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
From “1, 2 or 3” [JW] to … “Best talent in each
industry segment to build best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH
INITIATIVEE.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“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)
4. Pay
Fork Over!
“Top performing companies are two to four times more likely
than the rest to pay what it takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,
$3-4M per year. Pay: $135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for Talent, re Georgia Pacific
5. Youth
Grovel Before the Young!
“Davids vs. Corporate Goliaths: Could the
Record and Film Industries Be Brought Down by Teenagers?”Headline: The New York Times (08.06.00)
“The Rise of the Teen Guru”
“They’re brilliant, ambitious, and almost intuitively gifted at technology. A new generation
of whiz kids are gaining unprecedented power and
authority.”Source: Cover story, Brill’s Content, 7-8/00
“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)
6. Diversity
Mess Rules!
“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
“Diversity defines the health and wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting
the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity,
nourishes the human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
7. Women
Born to Lead!
Women and new-economy
management …
“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-
first-century economic community are going to need the natural
talents of women.Helen Fisher, The First Sex: The Natural Talents of
Women and How They are Changing the World
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s Stuff = New Economy Match
Improv skillsRelationship-centric
Less “rank consciousness”Self determinedTrust sensitive
IntuitiveNatural “empowerment freaks” [less
threatened by strong people]Intrinsic [motivation] > Extrinsic
“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
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)
Message: “Tomorrow belongs to women.”
Helen Fisher, The First Sex: The Natural Talents of Women and How They Are
Changing the World
8. Weird
The Cracked Ones Let in the Light!
[“We are in a
brawl with no rules.”
Paul Allaire]
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
Axiom: Never hire anyone without an aberration in their
background!
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human Enablement Department
“Firms will not ‘manage the careers’ of their employees. They
will provide opportunities to enable the employee to develop
identity and adaptability and
thus be in charge of his or her own career.”
Tim Hall et al., “The New Protean Career Contract”
Gen-X Demands
Love a new challenge. Want responsibility early. Crave freedom, independence and control. Are obsessed with
building their Human Capital. Value more than work. See a very
compressed career timeline.Source: Ed Michaels et al., The War for Talent
10. Leading Genius
We are all unique!
44 Players = 44 Projects = 44 different success
measures = 44 different styles (of you)
One size NEVER fits all. One size fits one. Period.
Employee retention & satisfaction:
Overwhelmingly, based on their immediate manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Insights from 80,000 managers:
“People don’t change much.“Don’t waste time trying to put in
what was left out.“Try to draw out what was left in.
“That is hard enough.”
Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Mantra2000
Talent = Brand
The Top 5 “Revelations”
Better talent wins.
Talent management is my job as leader.
Talented leaders are looking for the moon and stars.
Over-deliver on people’s dreams – they are volunteers.
Pump talent in at all levels, from all conceivable sources, all the time.
Source: Ed Michaels et al., The War for Talent
What’s your company’s …
EVP?
Employee Value Proposition, per Ed Michaels et al., The War for Talent
EVP = Challenge, professional growth, respect, satisfaction,
opportunity, reward [EVP = “The company’s
fingerprint”]
Source: Ed Michaels et al., The War for Talent
Brand Inside
Brand Action:Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
“This is all I ‘know’ in the
world!”Tom Peters
I. THE IDEA
“4Fs”: Find a
Fellow Freak
Faraway
Heart of the Matter
F2F!*
*Freak to Freak … or K2K [Kook to Kook]
World’s Biggest Waste …
Selling “Up”
Axiom: Never waste compelling evidence on people who don’t
agree with you, especially bosses. The principal purpose of such evidence is to inflame people who already agree with you – to the point that they will
take hard action.
II. THE NUGGET
Do Something. Do Anything.
Get Going.Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Shit-I-Wish-It-Were-Over Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War for Talent via … a thoroughgoing review
of how safety and environmental issues contribute to making this a
Great Place to Work?
Is It …
Fix these bloody customer problems that have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young division GM on …
using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the
heart of the Product Design Process?
Reframers’ Rules:
Rule 1: Never accept an assignment as given! (Please.)
Rule 2: You’re never so powerful as when you are “powerless”!
Rule 3: Every “small” project contains the entire
enterprise DNA!
III. THE SOFT STUFF
Connect!
Message: It’s Community
Organizing, stupid!
See: Saul Alinsky’s Rules for Radicals
IV. BOTTOM LINE
The Enemy!
Epitaph from Hell … Epitaph from Hell …
Joe T. Jones Joe T. Jones
1942 - 20001942 - 2000
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
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
Reprise: Brand Inside
The White Collar Revolution & The Web [DYB.com!]
PSF as Building Block [Work Worth Paying For!]
Work Worth Paying For = WOW Projects!
Brand You [Everybody!]
The Great War for Talent!
Boss-free Implementation of STM! [F2F]
N.W.O.: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are
for fools.”)• I love “Yes men”• Self-contained
• Seat 9B, UA233• Address: [email protected]• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal
as breathing• I love Misfits!• I love partners
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Outside
The Death Knell for Ordinary:
Pursuing Difference!
Forces @ Work II
The Commodity Trap
Quality Not Enough!
“Quality as defined by few defects is becoming the
price of entry for automotive marketers
rather than a competitive advantage.”
J.D. Power
Quality Not Enough!
“While everything may be better, it is also increasingly the
same.”Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“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
The “10X/10X Phenomenon”
10 Times Better/
10 Times Less Different
Brand Outside
Strategy 1:
Lead the Customer!
“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President,
Bentley College
“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing.
Companies should be idea-led and consumer-
informed.”Doug Atkin, partner, Merkley Newman Harty
“Our strategies must be tied to leading edge
customers on the attack. If we focus on the defensive
customers, we will also become defensive.”
John Roth, CEO, Nortel
Lucent Stumbles!
Cause(s): (1) Listening to BIGGEST, SLUGGISH
customers. (2) Failing to exploit the Web internally or externally
Source: Business Week (08.07.00)
Nypro!
Brand Outside
Strategy 2:Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.30.2000/1221AM:
2,461,940,629
www.cyveillance.com
10.24.2000/0416AM:
2,862,983,467
55 days, 3 hours, 55 minutes …
+401,042,838
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Savings in service and support from customer self-management: $500M
Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the
Web per se.
Schwab: $25B per week in asset transactions [80% of trades]
[Transition to e.Schwab: Rev. fell, then quickly doubled]
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
COMMUNITY SERVICES!/ CUSTOMER CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
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)
Cisco’s Secret
Trust (Openness to partners!!!!!)
Welcome to
D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as
a business go down and
perceived service goes up because customers are conducting it
themselves.” Ray Lane, Oracle
Psych 101: Strongest Force on Earth?
My need to be in perceived control of my universe!
“The moral is that in an imperfect world of customer
service, most customers prefer to cut to the chase
and help themselves.”
Adrian Slywotzky & David Morrison, Mercer Consulting
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
“The Web enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“In the network economy, the Website becomes the company’s primary interface to the customer.
The user interface becomes the marketing materials, store front,
store interior, sales staff and post-sales support all rolled into one.”
Jakob Nielsen, Designing Web Usability
“Most companies would do more business on the Internet if they
fired their entire marketing department and replaced it with
people who could produce interactive content that actually made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
SWA
Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t
believe they’re done)
30% of revenues directly from site (vs. 6% for others)
Source: Business Week (09.00)
RADICAL STRATEGIES
REQUIRED
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
ACT NOW, ACT FAST,
KEEP ACTING
“It’s better to be first with less than last with more. Success on
the Web isn’t just about time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
SUMMARY: REINVENT
EVERYTHING
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
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
A DREAMER’S MEDIUM!
“There is no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams you could never have imagined before!
“Banking is
necessary. Banks are not.”
Dick Kovacevich, Wells Fargo
Brand Outside
Strategy 3: Fighting Back via
Systems Integration!
THE CASE
B2B
1999 – 2004: 50X
2004: $7.4TSource: GartnerGroup (per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint$240B (+$500B)
I.P.O.
Solectron, IBM, Nortel, Matsushita, Seagate, Etc.
E2Open.com
$700B
Goal?
Drive profits to zero!*
*Remember AMR and “dynamic pricing.”
“Net Nips Real Estate Sales Fees”
Headline, p.1B, USAToday 07.05.00*
*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.
Message: “BOX” SELLERS LOSE!
Squeeze City: Joel Anderson. Anderson News Corp. North Court Street. [Next to Biscuit Village.]
Florence, Alabama. 4 of 10 mags. Wal*Mart et al.: 44%.
[2.6:1 “burn rate.”] Bow down [low!], Time Inc.
THE RESPONSE
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers
Consulting bus! (31,000 bods)
“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard
Defense-Offense: Systems Integration/HVA
Delphi, DanaUnited Technologies, Corning, GE, Sun, HP,
Carpet One, Bud …[Anybody in their right mind!]
E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
Brand Outside
Strategy 4:
Design Matters!
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
“We don’t have a good language to talk about this kind of thing. In most people’s
vocabularies, design means veneer. … But to me, nothing could be further from the
meaning of design. Design is the fundamental soul
of a man-made creation.”Steve Jobs
Message: “Great - Cool Stuff” Matters.
Great & Cool Trumps Not-So-Great &
Ho Hum!
Message iMac:
“Great Stuff” Takes Guts!!
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …
Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.
* List No. 1, 1999
Lady Sensor, Mach3, and …
$70M on developing the OralB CrossAction toothbrush
23 patents, including 6 for the packaging
Source: www.ecompany.com [06.00]
TARGET … “the champion of America’s new design
democracy” (Time)
Design “is” … WHAT &
WHY I LOVE. LOVE.
I LOVE my ZYLISS Garlic Peeler!
Design “is” … WHY I
GET MAD. MAD.
Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK
PHONE. Major Reward!
Design is never neutral.
Hypothesis: DESIGN is the principal difference
between love and hate!
T.T.D./Design “Awareness”!
STEP No. 1: NOTEBOOK![Start recording the awesome
and the awful.]
Brand Outside
Strategy 5:
It’s the Experience!
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The
Experience Economy: Work Is 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
“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
PlotWilliams Sonoma = 6 [was 10]
Crate & Barrel = 8Sharper Image = 9+
Smith & Hawken = 8+Vermont Country Store = 8+
Garnet Hill = 9L.L. Bean = 5 [was 9+]
Land’s End = 7+Colonial Williamsburg = ?
The “Experience Ladder”
Extraction/Raw MaterialsGoods
ServicesExperiences
To 1940: Cake from flour, sugar (extraction economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1985+: Party @ Chuck E. Cheese (experience economy) $100.00
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
Extraction & Goods: Male dominance
Services & Experiences: Female
dominance
Brand Outside
Strategy 6:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 80%Consumer Electronics … 51%
Cars … 50%+/80%Etc.
48% working wives > 50%80% checks
61% bills53% 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
$4.8T > Japan
9M/27.5M/$3.6T > Germany
New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!*
[* No shit!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same way, don’t communicate the same
way, don’t buy for the same reasons.”
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,
they make connections.”
“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!)
Women and Healthcare
Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for
time … and make 75% of health care decisions and control 2/3 of health care $
$$$ [and constitute 2/3 of health care employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.
Women do not want … an in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
“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)
Marketing to Women: Help Them Save Time!
80% … work86% … cook
58% … run errands with kids38% … take child to school
21% … go to the gym21% … take outside classes
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done indicates that women really care about the relationship with their
vendor.”
Robin Sternbergh/ IBM
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
Not!!
“Year of the Woman”
Enterprise Reinvention!
RecruitingHiring/Rewarding/ Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
“What kind of car does Mommy want?”
“I didn’t know [company] were giving
company cars to secretaries.”
Source: UK financial services CEO, 12/99
“Honey, are you sure you have the kind of money it takes to be looking at a car like
this?”
“Excuse me, doctor, but it’s my neck that’s
in pain!”
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS
SEMINAR. [PLEASE: THINK ABOUT IT!]
Psssst! Wanna see my “porn”
collection?
27 March 2000: email to TP from Shelley Rae Norbeck
“I make 1/3rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women
friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
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
“If we are single, they say we couldn’t catch a man. If we are
married, they say we are neglecting him. If we are divorced,
they say we couldn’t keep him. If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female political candidacy
Speaking of Enormous
[Missed] [Huge] Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44, stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is stupid, stupid!
2000-2010 Stats
18-44: -1%55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Priorities: Aging/“Elderly”
Experiences … Convenience … Comfort
… Access … Respect!
“Such a critical mass of older women with a tradition
of rebellion and independence and a way of
making a living has not occurred before in history.”
Gerda Lerner, historian
Brand Outside
Strategy 7:Embracing an
Age of Self-Determination
The Individual
“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
The Organization:
Seller’s [Talent] Market
“Talented people are less likely to wait their turn. We used to view young people as trainees; now
they are authorities. Arguably this is the first time the older
generation can – and must – leverage the younger generation
very early in their careers”
Ed Michaels, War for Talent (05.17.00)
The Market: Fighting
Sameness with Distinction
“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing.
Companies should be idea-led and consumer-
informed.”Doug Atkin, partner,Merkley Newman Harty
Web World: POWER TO
THE PEOPLE
The control revolution. The potentially monumental shift in control from institutions to individuals made possible by new technology such as the Internet. The conflict over such
change between individuals and powerful entities (governments,
corporations, the media).
Source: Introduction, The Control Revolution, Andrew Shapiro
Women Get Respect … and
Take Charge
“Greater opportunity for women is probably the most significant gain for human freedom in
the last century.”Andrew Sullivan, The New Republic
The Elderly Get Respect … and
Take Charge
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Our Biggest Industry: The Patient Takes
Charge
“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00
“Online Medical Records Seen Empowering
Patients”
Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K
patients @ CareGroup
1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”
YES, NURSE. ME GOOD PUPPY DOG.
1995: “HMO will take care of you.”
BULLSHIT.
2005: “I will take care of me. I’d like your expert help.”
The “Specialist Syndrome” …and the [OVERWHELMING] Case
for Patient Self-determination
Lisa Gubernick gets 8 [significantly different] opinions from 8 docs re her back pain [Wall Street Journal:
10.06.00]
The Poor Get Respect
Grameen Bank/Bangladesh
“It’s not people who aren’t credit-worthy. It’s banks that aren’t
people worthy.”$2.3B to 2.3M [typical 1st loan: $15.]
98% recovery rate [94% to women!]
1/3rd out of poverty; 1/3rd up to non-poverty threshold
Muhammad Yunus, Banker to the Poor
“The Grameen loan is not simply cash. It
becomes a kind of ticket to self-discovery and
self-exploration.”
Muhammad Yunus
Sooooo …
Is your strategy centered around customer-client empowerment & self-
determination? Hint: This means letting go
of traditional sources of power!
How Dare They!
“Surfing the net is new route to college: But counselors fear that some students will pick schools with little guidance”
Headline, p1A, USA Today, 10.03.00
Brand Outside
Strategy 8:
BRAND POWER!
Brand It! Now, More Than Ever!
“The increasing difficulty in differentiating between products and
the speed with which competitors take
up innovations will assist in the rise and rise of the brand.”
Gillian Law and Nick Grant, Management [New Zealand]
“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
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
“In the funky village, real competition no longer revolves
around marketshare. We are competing for attention –
mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Brand = Special = Passion = Plot =
Compelling Mythology = Cause = Connection = Heart
Rules of “Radical Marketing”
Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!
Celebrate Craziness!Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)
T.T.D./Calling the Corporate Shrink!
“Organizational Psychotherapy”/
WHO WE ARE!
T.T.D./Assignment Y2K
Write an essay on “Who we are.”*
* Jesper Kunde, Corporate Religion
T.T.D.: “How can I know what I think till I see what I say”*
Exercise : Write copy for a bookmark! (Etc.)
*Graham Wallas, The Art of Thought
What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and
you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded
sub-$200 watch market, they made it into a brand name, named after the most
irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
“Salt is salt is salt. Right? Not when it
comes in a blue box with a
picture of a little girl carrying an umbrella. Morton International continues to
dominate the U.S. salt market even though it charges more for a product that is
demonstrably the same as many other products
on the shelf.”
Tom Asaker, Humanfactor Marketing
Brand Outside
Reprise: Wimps & Weenies Need Not
Apply!
Lead the Customer: Why Tough
Guts!Failures!
Re-invention via ecommerce: Why Tough
Total commitment to total enterprise [and supply
chain] reinvention!
Systems Integration: Why Tough
Completely new view of what a “product” is.
Design: Why Tough
True-believer-dom-shipEncompassing/Cultural
Ing-ing/Experience: Why Tough
Total Reorientation
Women’s Market: Why Tough
EncompassingAttitude
CULTURAL!
Self-Determination: Why Tough
Cede Control
Brand Power: Why Tough
Way of LifeForever!
Passion Rules!Touches Everything!It Am Me [Personal!]
Message :
Not for the Faint of Heart!
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Leadership is a performance. You have to be
conscious of your behavior, because everybody else is.”
Carly Fiorina
“You must be the change you want to bring about.”
Gandhi
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
“A leader is a dealer in hope.”
Napoleon
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander
Have you changed civilization today?
Source: HP banner ad
