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Tom Peters Seminar2000 Distinct or … Extinct
OLASan Diego
04November2000
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)
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)
“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)
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
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth, Lockheed, Coca-Cola
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
White Collar Revolution!
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)
Cisco, Dell =
Brand-owning companies who sell Customer
Satisfaction
Source: David Schneider & Grady Means, MetaCapitalism
Brand Inside
Brand Work: The WOW Project
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Brand Inside
Brand You: Distinct …
or Extinct
DISTINCT … OR EXTINCT!
“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”
Michael Goldhaber, Wired
Invent. Reinvent. Repeat.
Source: HP banner ad
Brand Inside
Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“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)
“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)
“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
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
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
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
Mantra2000
Talent = Brand
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
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
“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
“When we did it ‘right’ it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
Brand Outside
The Death Knell for Ordinary:
Pursuing Difference!
My [Sorry] Experience
I have no acute problems.I view the “glasses thing” as an annoyance of
getting old.I have not been educated; I am now stunned at
my options.A little thing [frame defect] can ruin the entire
experience.Your [collective] sales and education effort has
been underwhelming.As I prepared for this seminar, I became very
annoyed!I am a [classic?] missed opportunity.
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
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
11.04.2000/0516AM:
2,943,684,326
66 days, 4 hours, 55 minutes …
+481,743,697
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
Oracle: Service Call Center
$300.00 per transaction to $1.50
Savings: $550,000,000
Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B;
$1B additional this year]
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)
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
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)
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
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.”
Message: “BOX” SELLERS LOSE!
THE RESPONSE
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
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
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
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”
Message: WHAT IS THE “VALUE
[ADDED] PROPOSITION”?
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!
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Lady Sensor, Mach3, and …
$70M on developing the OralB CrossAction toothbrush
23 patents, including 6 for the packaging
Source: www.ecompany.com [06.00]
Design “is” … WHAT &
WHY I LOVE. LOVE.
Design “is” … WHY I
GET MAD. MAD.
Design is never neutral.
Hypothesis: DESIGN is the principal difference
between love and hate!
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
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
Brand Outside
Strategy 6:
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
T.T.D./Calling the Corporate Shrink!
“Organizational Psychotherapy”/
WHO WE ARE!
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander
