Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001

Tom Peters Seminar2001

We Are in a Brawl with No

Rules!MASTER/09.19.2001

“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

Facts: It could happen again. (2) It could be much, much worse (e.g.,

nuclear satchel charges, bio-agents).

Quandaries: (1) Who is the enemy? (2) Where is the enemy? (3) How do you use “modern” weapons & forces to

combat 50 hyper-fanatics armed with penknives and box cutters? (4) How did we get into this pickle? (5) Why

are we so hated by some?

B, C, P, R, S know about as much

as you and I know. WE ARE IN A

BRAWL WITH NO RULES.

The “New War”: (1) Best offense: Pen knives.

(2) Best defense: CELL PHONES!

“Our military structure today is essentially one

developed and designed by Napoleon.”

Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

BmC: (1) Hierarchy vs. “Network organization.” (2) NWO = “Doctrine as center

of gravity”/motivation, distributed support &

decision-making, “outside the military sphere.”

Read …

6 Nightmares: Real Threats in a Dangerous World and How

America Can Meet Them, Anthony Lake.

Lifting the Fog of War, Admiral Bill Owens

All Slides Available at …

tompeters.com

More at … tompeters.comSlides from this seminar;

Master Presentation, for in-depth; annotated Special Presentations

[Women Rule!, Design!, etc.].“Cool Friends” (referenced in seminar).

Discussions re this stuff.Calendar of events.

Note: Lavender text in this file is a link.

“There’s going to be a fundamental change in the

global economy unlike anything we have had since the cavemen began bartering.”

Arnold Baker, Chief Economist, Sandia National Laboratories

“In 25 years, you’ll probably be able to get the

sum total of all human knowledge on a personal

device.”Greg Blonder, VC [was Chief Technical

Adviser for Corporate Strategy @ AT&T] [Barron’s 11.13.2000]

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)

“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

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 1st 20 years > 1800s

2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th

century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture

in the fabric of human history”)

Ray Kurzweil, talk april2001

“Unless mankind redesigns itself by changing our DNA through altering our genetic

makeup, computer-generated robots will take

over the world.” – Stephen

Hawking, in the German magazine Focus

CEOs appointed after

1985 are 3X more likely to be fired than CEOs appointed before 1985

Warren Bennis, MIT Sloan Management Review

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

Message*: Are all CEOs bozos? Was Darwin a

genius, or what? So, Boss Man, whadda you say

about “risk taking” now?

*And “all that” (2 of 100; 12 of 500) was in relatively placid times.

“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

“A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in

older products. This results in a surge of productivity and performance that may take the old technology to unheard of

heights. But in most cases this is a sign of impending death.”

Jim Utterback, Mastering the Dynamics of Innovation

“BIG DRUG MAKERS TRY TO POSTPONE

CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are

prescribed, and experts believe genetic differences are part of the reason. The

technology for genetic testing is now in use. But the technique threatens to be so disruptive to the

business of big drug companies – it could limit the market for some of their blockbuster

products – that many of them are resisting its widespread use.”

The Wall Street Journal (06.18.2001)

TP’s Times Past with MUs*: HP. Xerox. IBM. DEC. Kodak.

Western Electric.

*Masters of the Universe

“The Internet is not going away – but flawed business

models are.” fool.com

Dotcoms … drew old economy companies’ attention to a new “do it all” way of getting consumers’ interest [e.g., convenience, selection, price @ amazon]

Revamped business-to-business relationships, resulting in greater value, efficiency, and better service

Sped up decision-making and forced older firms to be more adaptable

Created new [activist] board models

Changed the talent side of the equation and encouraged healthy changes in the work environment

Source: Leo Higdon, president, Babson College

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

“Most of our predictions are based

on very linear thinking. That’s why they will

most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01

The Kotler Doctrine:

1965-1980: R.A.F.(Ready.Aim.Fire.)

1980-1995: R.F.A.(Ready.Fire!Aim.)

1995-????: F.F.F.(Fire!Fire!Fire!)

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)

“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

“The highest performing companies have well-developed systems for killing ideas

their customers don’t want. As a result, these companies find it very difficult to invest adequate resources in disruptive

technologies—lower margin opportunities that their customers don’t want—until they

want them. And by then it’s too late.”


“BIG DRUG MAKERS TRY TO POSTPONE

CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are

prescribed, and experts believe genetic differences are part of the reason. The

technology for genetic testing is now in use. But the technique threatens to be so disruptive to the

business of big drug companies – it could limit the market for some of their blockbuster

products – that many of them are resisting its widespread use.”

The Wall Street Journal (06.18.2001)

“It used to be that the big

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

Venture Partners)

Read It Closely: “We don’t sell

insurance anymore. We sell speed.”

Peter Lewis, Progressive

JY: Who do you fear most, big companies or start-ups?

JC: I have a list with a dozen little companies I’m tracking closely. Guys

who can start with a fresh sheet of paper have an enormous advantage technologically. We have to carefully

integrate new capabilities into our existing product line, they don’t.”

Source: Cisco Unauthorized

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)

Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-

guided munitions, and it marks a sea change for the industry. The implications for existing

business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline:

“minibuster.” Rob Arnold, Euro head of life sciences, PWC: “Once you start dealing with minority

treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make

money could be at a real advantage.”

“Pharmacogenomics could

fundamentally change the nature of drug discovery and marketing,

rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and

money to craft a single medicine with mass-market appeal.”

The Industry Standard (05.28.01)

I Believe …

1. Change will accelerate. DRAMATICALLY.2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS. (Business … Health Care … Politics … Fundamentals of Human Interaction.)

3. OPPORTUNITIES are matchless. 4. You are either … ON THE BUS … or … OFF THE BUS.5. THIS IS ALL GREAT FUN! I WANT TO PLAY! AND YOU?

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

TOPICS. BRAND INSIDE. Forces at Work II: The Destruction Imperative. Brand Org: Lean, Linked, Internet-driven, Virtual. Brand Work: The Professional Service Firm Model. The

Heart of the V.A. Revolution: PSF Unbound. Brand You: Distinct … or Extinct. Redefining

the Work Itself: The WOW Project. Brand Action: Getting Started (when You Are

“Powerless). Brand Talent: The Great War for Talent. Brand Talent+: The Education Fiasco.

Summary: The High Standard Deviation Enterprise.

TOPICS. BRAND OUTSIDE. Forces at Work II: The Sameness Trap. Strategy 1A: Use E-

commerce to Re-invent Everything. Strategy 1B: Healthcare et al.: Embracing an e-Led Age of Self-determination. Strategy 2A: Women

Rule. Strategy 2B: Welcome to “Old World.” Strategy 2C: Welcome to “Green World.”

Strategy 3A: Design Matters. Strategy 3B: It’s the Experience. Strategy 3B1: A case in Point: The Four Seasons. Strategy 4: Brand Power.

TOPICS. BRAND LEADERSHIP. Passion Rules.



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

“Damned If You Do, Damned If You Don’t, Just Plain Damned”

Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep

Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

“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)

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 (03-00)

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]

“Active mutators in placid times tend to die off. They

are selected against. Reluctant mutators in

quickly changing times are also selected against.”

Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors

“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo

to create an unsustainable series of competitive advantages. This is not an age of defensive

castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable

advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the

only level of competition.”

Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a

timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the

assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in 1000 A.D.]”

Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

“The Futility of Size …

“[Regarding this issue] the new process of virtualization fully asserts itself. Virtualization is the recognition

that territorial size does not solve economic problems. … Economic

access must become the substitute for increasing domain.”

Richard Rosecrance, The Rise of the Virtual State

“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)

“The Word(s)” on Vitality: Gary Hamel

“Sell By” [jettison old crap]

Spin Out [support entrepreneurs]

Spin In [buy young firms]

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

RM: “A lot of companies in the Valley fail.”

RN: “Maybe not enough fail.”

RM: “What do you mean by that?”

RN: “Whenever you fail, it means you’re trying new things.”

Source: Fast Company

http://www.fastcompany.com/online/42/fasttalk.html

“The secret of fast progress is

inefficiency, fast and furious and numerous

failures.”Kevin Kelly

“In Italy for thirty years under the Borgias they had warfare, terror,

murder, bloodshed—and produced Michelangelo, da Vinci and the

Renaissance. In Switzerland they had brotherly love, 500 years of

democracy and peace, and what did they produce—the cuckoo clock.”

Orson Welles as Harry Lime, “The Third Man”

Japan’s Science Gap *

Rice farming culture: Uniqueness suppressed. Gov’t control of R & D. Promotion based on

seniority. Consensus vs. debate. (U.S.: friends can

be mortal enemies.) Bias for C.I. vs. “bold leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe: “What we need to

create is job insecurity rather than security to make people compete more.”

*Hideki Shirakawa, Nobel laureate, chemistry

Message: Destroy to Create!

Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness.

F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.

Brand Inside

Brand Org: Lean, Linked,

Internet-driven, Virtual

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!

IBM’s Project eLiza!

80,000?

“The coefficient of friction associated with the grunge of business

is amazing!”Michael Schrage

http://www.tompeters.com/cool_friends/content.asp?id=21

“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.

Better Red than Dead?/Better Dead than Red?

“We will see more and more outsourcing of

discovery processes.”Craig Venter

Better Red than Dead?/Better Dead than Red?

“If we completely outsourced all of our genetic

analysis, we’d be held hostage by outside people.”

Brian Spear, Director of Pharmacogenomics, Abbott Labs

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.”

“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

Cisco, Dell =

Brand-owning companies that sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism [e.g.: Cisco owns 2 of 38

assembly plants]

Message: The W.C.R. is

inevitable. Lead it. Or get swallowed by it.

Karl Marx Meets Adam Smith: Lessons from the Bush

(1) Specialization-excellence. (Or death.) (2) Luck is irrelevant. (In a drought, drought

specialists survive.) (3) Bigger is not necessarily better. (All hail the termites +

bacteria!) (4) Efficiency matches effectiveness: no wasted motion, no

bureaucratic B.S., very low “transaction costs.” (I’net does this. C.f. Dell.) (5) Hyper-interdependence. (The power resides in the

network: Self-organization is the rule. I’net redux. Viral marketing. “Farm-out” is the norm.)

Brand Inside

Brand Work: The Professional Service Firm

Model

So what will be the Basic Building

Block of the New Org?

Every job done in W.C.W. is

also done “outside”

…for profit!

Answer: PSF![Professional Service Firm]

Department Head

to …

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

Credo: W.W.P.F.

“WORK WORTH PAYING

FOR”

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”?

“P.S.F.”: Summary

H.V.A. Projects (100%)Pioneer Clients

WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”

Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++)

When: Now!

BMW’s Designworks/USA:

>50% from outside work

Bill of (SELECTIVE) Rights

YOU HAVE THE RIGHT TO CHOOSE YOUR CLIENTS! (Wanna be-stay-get COOL … Work With Cool Clients!)

(YOU ARE YOUR CLIENT LIST.) (LIFE IS TOO SHORT TO WORK WITH

JERKS.) (Mass marketers: TARGET INNOVATION. E.g.: African-Americans … Hispanics … the Aging Population

… Greens … Women)

Culture Change is not “Corporate.”Culture Change is not a “Program.”

Culture Change does not take “Years.”Culture Change does not start “Today.”

Culture Change starts Right Now!Culture Change

Lives in the Moment!Culture Change is

Entirely in Your Hands!

What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

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

“The primary strategic mission for [CEOJeffrey] 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% to 70%)

“Customer Satisfaction” to “Customer Success”

“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?”


GE’s New Six Sigma Approach

Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s World.Source: Steve Kerr, VP, GE

“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)

Springs

Collections.Flexible sourcing.

Packaging.Merchandising.

Promotion.Design.

Systems & Site mgt.

= Turnkey.

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon/WebMD

* ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael

Lewis, The New New Thing

“ ‘Architecture’ is becoming a commodity.

Winners will be ‘Turnkey Facilities Management’

providers.”SMPS Exec

“We are a ‘real estate facilities consulting’

organization, not just an ‘interior design’ firm.”

Jean Bellas, founder, SPACE (from SMPS Marketer)

HSI/Hudson-Smith International

Mission: “serves as a vehicle for world-class athletes to receive expert training

and guidance alongside special

management and consultations. … Mr. Hudson strives to maximize each client’s profitability, exposure and

success through a hands-on management environment.”

Source: USAToday 07.05.00 p.1E

eHR*/PCC***All HR on the Web

**Productivity Consulting Center

Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

100% goes on the Web.

Non-awesome is outsourced.

Centers of Excellence are leveraged to the hilt!

“Masterful at Something”

Einstein. Niche. (Service

or Sector.) Community leader. Orchestrator.

Source: Ellen Flynn-Heapes, Creating Wealth: Principles and Practices for Design Firms

Service-Systems Paradox: Cut & Grow

Automate 75% of “commodity” service activities

and/but

Add value via people-intensive “strategic/systems-integration

activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)

Messages:

Every Dept. = PSF

Or Get Outsourced/ eAutomated.

Now.

Do or Die!

Maybe one [or more] of your “PSFs”” becomes

the tail that wags the dog called Market

Cap????? [E.g.: engineering-IS-logistics-customer service]

THIS IS A BIG

DEAL!

Markets to networks. Hierarchies to networks. Sellers and buyers to suppliers and users.

Ownership to access. (Age of Access.) Marginalization of physical property. Weightless

economy. Protean generation. Outsourcing of everything. Franchising of everything. (Business format franchising.) (Leasing DNA.) Everything is a service/platform for services delivery. (Give away

the goods, charge for the services. VALUE = THE RELATIONSHIP. “Share of market” to “Share of

customer.”) Every business is show business.

Source: Jeremy Rifkin, The Age of Access

Problem: Everybody is going after the same space!

“The e-conomy is one of re-intermediation, where new

technologies make it possible to radically increase complexity and

efficiency with the introduction of new marketplaces. In these markets, value

chains constantly reorganize as the demands of the consumer and

business change.”Thomas Koulopoulos, Delphi Group

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

“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

“New Economy changes how

firms treat layoffs”

Headline, USA Today (03.19.2001)

“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 SurvivalSkillsKit2001

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

Thriving in 24/7 (Sally Helgesen)

START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of

where we are.

LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.

CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your

own business.

WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking

people up.”

“Fail faster. Succeed sooner.”

David Kelley/IDEO


http://www.ideo.com/

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

Assignment

Construct a 1/8-page or 1/4-page ad for

Brand You … for the

Yellow Pages

“When was the last time you asked,

‘What do I want to be?’ ” Sara Ann Friedman, Work Matters

“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

“No prudent man dared to be too certain of exactly who he was.

Everyone had to be prepared to become someone else. To be

ready for such perilous transmigrations was to become

an American.”

Daniel Boorstin

Brand You, Big Time!

I AM AN ARMY OF

ONE

THE I work for a company called

Me STREET JOURNAL

Adventures in Capitalism

THE rise up and flee your cubicle STREET JOURNAL

Adventures in Capitalism

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

[“My ancestors were printers in Amsterdam from 1510 or so until 1750 and during that entire time

they didn’t have to learn anything new.”

Peter Drucker, Business 2.0 (08.22.00)]

“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?’ ”


“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)

T/D > 1.0

26.3

3 Weeks in May

“Training” & Prep: 187“Work”: 41

(“Other”: 17)

1% vs.

367%

T/D > 1.0

1% (0.01)

vs.

367% (3.67)

Divas do it. Violinists do it. Sprinters do it. Golfers do it.

Pilots do it. Soldiers do it. Surgeons do it. Cops do it.

Astronauts do it. Why don’t businesspeople do it

[very much]?

Conclusion: “We” are not

serious!

Invent. Reinvent. Repeat.

Source: HP banner ad

Message: Distinct … or Extinct.

In Store: International Equality, Intranational Inequality

“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great

rewards for merit and great individual autonomy. This will leave individuals far more responsible for

themselves than they have been accustomed to being during the industrial period. It will also reduce the

unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies

throughout the 20th century.”

James Davidson & William Rees-Mogg, The Sovereign Individual

Work-Life Balance

Madeleine McGrath & the Suicide

Hotline

Great Great Granddad: Pushes the plow.

Great Granddad: Horse now walks ahead of the plow.

Granddad: Farm Hand to Factory Factotum.

Dad: Factory Factotum to White Collar Cubicle Slave.

And You: V.A. Player (“Brand You”) … or else!

Brand Inside

Redefining the Work

Itself: The WOW Project

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

Your Current Project?

1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

“Astonish me!” / S.D.

“Build something great!” / H.Y.

“Immortal!” / D.O.

Words: WOW! Insanely

great! BHAG (Big Hairy

Audacious Goal). Make Something Great.

Astonish Me. Make It Immortal.

My GOAL: Radicalize Audiences!*

*Hint: These are Radical times!

“Learn not to be careful.”

Photographer Diane Arbus to her students (Careful = The sidelines,

per Harriet Rubin in The Princessa)

“He who fears losing his

reputation is sure to lose it.”

Napoleon

Message: PSF and WOW Projects are minimum

W.C.R. survival strategies. (And a better way

to live.)

Message/Query: Are Your Projects as “Mad” as

the Mad Times Demand?

“On their deathbed, Nobody says, ‘I didn’t spend enough time at the

office.’” TP: ON THEIR DEATHBED NOBODY SAYS, “WE DOUBLED

MARKET SHARE.” We say, “I remember that final drive. I

remember the pattern and hip fake that allowed me to snare the ball.”

Leaders-Teachers Do Not “Transform People”!

Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which

(3) allow people to fully (and safely, mostly—caveat: “they”

don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous

discovery voyage (alone and in small teams, assisted by an

extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-

leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage

“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their

“followers’ ” explorations!

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

The following slide begins the “Boss-Free Implementation of

Stuff That Matters” Section. The slides in this section are heavily

annotated.

Use Normal or Notes Page View to access the notes.

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

“This is all I ‘know’ in the

world!”Tom Peters

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.

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

“I made a note. I’m going after

[PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt.

Things are going too well.”

Sales Exec, high-tech superstar

THE NUGGET

Do Something. Do Anything.

Get Going.Now.

Opportunity ALWAYS Knocks

VFCJ* “Strategy”

*Volunteer For Crappy Jobs

Is It …

“The Oh-Hell-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?

“Little”? Or: “B-I-G”?

U. Of Georgia Dean: “What’s the best thing the federal government

has ever done for the South?”

G. McGovern: “The New Deal?”

Dean: “No, school lunches.” (Attendance and test scores

leaped.)

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!

“ ‘Obeying the rules’ is

obeying their rules. [Women] can never be

powerful as long as they try to be in charge in the same

way men take charge.”Harriet Rubin,

The Princessa: Machiavelli for Women


THE TOOL

Prototyping Mania!

Culture of Prototyping

“Effective prototyping may be

the most valuable core competence an innovative organization can

hope to have.”

Michael Schrage

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

“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

“Sony Electronics has a well-earned reputation for persistence. The company’s first entry into a

new field often isn’t very good. But, as it has shown in laptops, Sony

will keep trying until it gets it right.”

Business Week (5/01)

“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.

They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they’ve gained in

other markets to enforce their standard.”

Seth Godin, Zooming


“Fail faster. Succeed sooner.”

David Kelley/IDEO

“Learn not to be careful.”

Photographer Diane Arbus to her students (Careful = The sidelines,

per Harriet Rubin in The Princessa)

“Success is the ability to go from failure to

failure without losing your enthusiasm.”

Winston Churchill (as quoted by John Peterman)

Silicon Valley Success [Failure?] 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

He who has the quickest O.O.D.A.

Loops* wins!*Observe. Orient. Decide. Act. /

Col. John Boyd

THE SOFT STUFF

Connect!

Message: It’s Community

Organizing, stupid!

See: Saul Alinsky’s Rules for Radicals

Are You …

A Viral Enthusiast?A Closer?

Message to “scientists”: It AIN’T about the science. It’s

NEVER about the science. It’s ALWAYS

about the PASSION for the IDEA.

Fact: 1000s of PLAUSIBLE drug

candidates. Winners based [mostly] on desire &

tenacity of Project Manager/Team

Politics Rules!

Project Team Golden Leadership Triangle

(1) Champion-Maniac. (2) Implementer-Pol.

(3) Schedule & Budgets Fanatic.

“In a long and honorable career, a Ph.D. scientist

in a pharmaceutical house is not likely –

statistically – to experience a success.”

Pharmaceutical Exec

TP: Rubbish!

“Statistically speaking,” Churchill shouldn’t have been able to fend off

Hitler. “Statistically speaking,” de Gaulle shouldn’t have been able to

revive the French. “Statistically speaking,” Jefferson & Adams &

Hamilton shouldn’t have been able to create America.*

* “Statistically speaking,” Pfizer or no Pfizer, ain’t none of us getting’ out of this alive.

I wonder …

Will one of you be awoken

some December morning in Stockholm by candle-carrying

kids?

SOME OF YOU IN THIS ROOM WILL BE ARCHITECTS OF

A SUCCESSFUL NEW DRUG. WHY: SCIENTIFIC PROWESS,

3.7%; PASSION & DRIVE & SALESMANSHIP & POLITICAL

SAVVY, 96.3%.

Mark McCormack on Champions

“profound sense of dissatisfaction”

“peak at the right moment”

“killer instinct”

“A real superstar is mean in a particular way. He is Michael Jordan or

Cal Ripken, greedy for records and history. Armored and self-contained, his

inner core is a hard knot of physical talent and fierce will. Nothing penetrates that core, and anybody or anything that

gets too close is out of his life.”

Michael Sokolove, “The last Straw”

“I think I’m happy. It may not seem like I’m happy on my face, but I’m also greedy. And

I’m not done.”Shaq O’Neal, on why he didn’t go nuts when the

Lakers finished the best NBA post-season ever

“Ace Greenberg [Bear Stearns] once said he didn’t give a hoot

about job applicants’ education as

long as they had ‘a deep desire to become

rich.’ ”Time (06.25.01)

“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

“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop

and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ ‘You can tell

that this is really Prof. C’s life.’ ”

Parker Palmer, The Courage to Teach

“One student said she could not describe her good teachers because

they differed so greatly, one from another. But she could describe her bad teachers because they were all

the same: ‘Their words float somewhere in front of their faces, like

the balloon speech in cartoons.’ ”


P.S. …

Mark McCormack: 5,000 miles for a 5

min. meeting.

“The two most powerful things I know

in existence: a kind word and a

thoughtful gesture.”Ken Langone, CEO, Invemed Associates [from

Ronna Lichtenberg, It’s Not Business, It’s Personal]

P.S.: Women are more pre-disposed to the stuff in this

section. Right?

THE PROCESS

Summary

Boss-free “Selling” of a WOW! Idea

Get a Zany [WOW!] Idea/Shop it with a coupla good pals.

Surface [using your network] a list of [operational] folks who might be interested in playing.

Call, visit and choose a coupla prospects.Engage the prospects [they must “own” “it”].

Concoct a rough plan and a prototype schedule. Move forward [Ready. Fire! Aim.].

Keep on recruitin’.Get the Test Customer to recruit some buddies for Round #2 tests [Meanwhile Customer #1 expands

program]

Boss-free “Selling” of a WOW! Idea (cont.)

Get going with Round #2 prototypesStart conscious “buzz building” [Let “the word” of

successful tests trickle out]Have the “line dudes” put on a demo for, say, a coupla

“cool” regional bossesEtc.Etc.

Have the growing Network of Converts initiate a Major Program Proposal

Etc.Etc.

Boss Advice I: The “Poster Kids”/ “End Run”/“Skunks” Strategy

Chat up a cross-section of the Org.Develop a tentative list of Pioneers/“Skunks.”

Hang with those Skunks, discover their “stuff I’ve long wanted to do”/Encourage

them to “Do it!”Begin to showcase their developing results

[with your public stamp of approval]. Dip deep[ish] and early - promote a Super

Skunk into the [New] Establishment.Incorporate the Skunks’ work into your Vision

Chatter/Welcome ALL aboard!

Boss Advice II: Starting the “Hmmmmm?” Buzz

“Event Marketing”: Idea Faire/Internal “Tradeshow”/Bragfest. Or: Seminar Series, with

“strange” outsiders/insiders (not the usual suspects); intense Web-based follow-up and community creation

(Neighborhoods of Common Interest).

“Play Fund,” around a topic of importance. Small-ish grants. Easy application process. Short-ish

timeframes. (Gerstner @ American Express re AI.)

“Scholarships” (not the usual suspects). Sabbatical funds (contest?). Placement on customer or supplier

project teams (not the usual suspects).

Boss Advice III: The “Flypaper Strategy”

Don’t try to “change the culture”!

Do create fly paper which attracts Mavericks & Pirates!

Let the new culture (which is already lurking around you) find you!

Publicize, at the appropriate moment, the New Hall of Fame; help the New Culture Adherents create & nurture Community!

The “Flypaper/Epidemic Strategy”: Trolling for would-be Revolutionary(ies). Age & rank & size of org do not matter/passion rules (Gap’s 27-yr-old; Rajat; OSHA Maine;

Anthem NH). (Hmmmm. Maybe size & rank do matter??) (“I won’t help you get promoted. I will help

you start a revolution/epidemic.”) Help the infected one(s) become “carriers;”

study epidemiology. MBSA.

QCC/Quick Culture Change

Hire Weird

Promote Deep

Rule of Three (3 = Critical Mass)

The Golden Triangle: (1) Creator-Inventor-

Visionary … (2) Talent Fanatic … (3) Inspired

Profit Mechanic.

Project Team Golden Triangle

(1) Champion-Maniac. (2) Implementer-Pol. (3)

Schedule & Budgets Fanatic.

Nasser’s Triad*: The Internet Is the New Job 1

Brian Kelley, 40, head of global sales and service (GE appliances); first non-“car guy”

in the job

Karen Francis, 38, eBusiness czar (Olds brand boss)

Marv Adams, 43, CIO (Bank One’s IT infrastructure consolidator)

* All three are “direct reports”

BOTTOM LINE

The Enemy!

Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001

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

“It is a glory to have broken such infamous orders.”

John Adams, to Congress, on ignoring his charter and negotiating successfully with the Brits for Independence, against the will of the French

“If anyone can do it, John [Rebus],

you can. I’ve always had confidence in your sheer

pig-headedness and inability to listen to your

senior officers.”

from Ian Rankin, The Falls

“In a long and honorable career, a scientist in a

pharmaceutical house is not likely – statistically – to

experience a success.”Big Pharma Exec

TP: Bullshit!

“Statistically speaking,” Churchill shouldn’t have been able to fend off

Hitler. De Gaulle shouldn’t have been able to revive the French. King & Jefferson & Adams & Hamilton

shouldn’t have been able to change/create America.*

* “Statistically speaking,” Pfizer or no Pfizer, ain’t none of us getting’ out of this alive.

SOME OF YOU IN THIS ROOM WILL BE ARCHITECTS OF A

SUCCESSFUL NEW DRUG. WHY: SCIENTIFIC PROWESS, 4%;

PASSION & DRIVE & POLITICAL SAVVY, 96%. (Hint: World’s best

“politicians”: Would-be Nobel laureates.)

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.)


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.


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!

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.”


“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

“Workers with good ideas, or the ability to generate

ideas, can write their own ticket. We’re talking about

the democratization of power.”

Nathan Myhrvhold

Dick Kovacevich (Wells Fargo) on Talent

“You don’t just write a memo saying people are a competitive advantage. You back that up with

training, incentives and the interpersonal relationships developed over time that add up to your employees caring more about their

customers than the employees of your competitors. I can’t overstate how

differentiating that is, as opposed to a silver bullet about figuring out some way to segment

the market.”

Source: ABA Banking Journal

“We have transitioned from an asset-based strategy

to a talent-based strategy.”

Jeff Skilling, CEO, Enron

The Talent Ten

1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

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)

Model 24/7: Sports Franchise GM

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.

Dept. Head I = Sports G.M.

Dept. Head II = V.C.

G.M. = The Recruitment and Development of Top Talent.

[Period!]

V.C. = Bets on “Talent.” Bets on Projects. [Period!]

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.”


Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

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.”


“We value engineers like professional athletes. We value great people at 10 times an average person

in their function.”Jerry Yang, Yahoo

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


What gets measured gets done. What gets

paid for gets done more. What gets paid

a lot for gets done a lot more.

5. Youth

Grovel Before the Young!

“Why focus on these late teens and twenty-somethings? Because they are the first

young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has

triggered the first industrial revolution in history to be led by the young.”

The Economist [12/2000]

“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.”


“Inexperience Is Bliss”/The Economist

Gen e: They welcome change.

They think differently.

They are independent.

They are entrepreneurial.

They want opportunity more than money or security.

They demand respect in a way young people never could before.

Enron

COO: Louise Kitchen, F, 29; created

EnronOnline as “Skunkworks”

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

Message(s) ABB, Shelland [Damn Few] Others

ELITE Global CadreGenuinely Global BOARD

7. Women

Born to Lead!

“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

“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


“American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one

organization and one country from another will be its use of human

resources. Today human resource utilization is not only a matter of social

justice but a bottom-line issue.”

Judy Rosener, America’s Competitive Secret



Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

“Guys want to put everybody in their hierarchical place. Like, should I have more

respect for you, or are you somebody that’s south

of me?”Paul Biondi, Mercer Consultants [from It’s Not Business, It’s Personal, Ronna Lichtenberg]


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

Women’s Strengths: Link [rather than rank] workers; favor interactive-collaborative

leadership style [empowerment > top-down decision making]; sustain fruitful collaborations;

comfortable with sharing information; see redistribution of power as victory, not surrender;

favor multi-dimensional feedback; value interpersonal & technical skills, group &

individual contributions equally; readily accept ambiguity; honor intuition as well as pure

“rationality”; inherently flexible; appreciate cultural diversity

Source: Judy B. Rosener, America’s Competitive Secret

Men & women on ambiguous problem [no answer]: MEN:

quickly arrive at “right answer” WOMEN: longer time, multiple

options in “if, then” form

Source: Judy Rosener,

America’s Competitive Secret

Guys’ No. 1 Strength:

Lack of thoughtfulness.

TRY SOMETHING. ANYTHING. NOW.

“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

“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)

M-F GPAs: All: 2.92M vs. 3.07F; Arts: 3.08M, 3.13F; Bus: 2.79M,

2.96F; Science/Math: 2.98M, 3.18F;Eng/CompSci: 2.96M, 3.17F.

% Professional Degrees: F ’77: 19%; F ’94: 41% (45% Ph.D.s)

Read This!

“Winning the Talent War for Women: Sometimes It

Takes a Revolution” Douglas McCracken, HBR [11-12/2000]

“Deloitte was doing a great job of hiring high-performing women; in fact, women often earned

higher performance ratings than men in their first years with the firm. Yet the percentage of women

decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male-dominated culture and found them wanting.

Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched

professions.”

Douglas McCracken, “Winning the Talent War for Women” [HBR]

“The process of assigning plum accounts was largely unexamined. …

Male partners made assumptions: ‘I wouldn’t put her on that kind of

company because it’s a tough manufacturing environment.’ ‘That

client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ”

Douglas McCracken, “Winning the Talent War for Women” [HBR]

Okay, you think I’ve gone tooooo far.

How about this: DO ANY OF YOU SUFFER

FROM TOO MUCH TALENT?

63 of 2,500 top earners in F500

8% Big 5 partners

14% partners at top 250 law firms

43% new med students; 26% med

faculty; 7% deans

Source: Susan Estrich, Sex and Power

S. Estrich: The Magic Number 3! [Partners, Tenured Profs, Directors]

“Women are expected to be the majority of students entering

law school this fall. … The movement ultimately is expected

to propel more women into leadership positions in politics

and business.”

Source: The New York Times, p.1, 03.26.2001; 10% of students in 1970, 49.4% in Fall 2000

“It’s time for U.S. organizations to act. No other country in the

world has a comparable supply of professional women waiting to be called into action. This is America’s competitive secret.”

Judy B. Rosener, America’s Competitive Secret

Sally Helgesen, Female Advantage


Deborah Tannen, You Just Don’t Understand

John Gray, Men Are from Mars, Women Are from Venus

Faith Popcorn, EVEolution

8. Weird

The Cracked Ones Let in the Light!

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!

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

Would Craig Venter (Luciano Benetton)

come to work for us?

“I would like to think we could

attract students with green

hair. We will take pink and

blue and orange hair, too.”

Shirley Tilghman, Princeton

Axiom: Never trust a “boss” with

no toys in his/her office!

“Andrew Higgins, who built landing craft in WWII, refused to hire graduates of engineering schools. He believed that they

only teach you what you can’t do in engineering school. He started off with 20 employees, and by the middle of the war

had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us.

He did it without engineers.’ ”

Stephen Ambrose/Fast Company

The NAESP …

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

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!

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!

“Well-behaved women rarely make history.”

Anita Borg, Institute for Women and Technology

9. Opportunity

Make It an Adventure!

“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”

“H.R.” to “H.E.D.” ???

Human

Enablement

Department

10. Leading Genius

We are all unique!

Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

48 Players = 48 Projects =

48 different success measures

Why Don’t Most Biz Mgrs. Think This Way?

“Coaching is winning players over.” *

Phil Jackson

*Not: “planning,” “implementing,” “clear communication,” “getting the org chart right.”

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

Employee retention & satisfaction:

Overwhelmingly, based on their immediate manager!



Managing: “The people thing” [Inspire one]

[Cool!]Leading: “The vision

thing” [Inspire all] [Cool!]

Goal of the Year No. 1*: Find-Develop-Mentor

ONE Extraordinary Person.

*CEO, large financial advisory firm, April 2001

It’s your fault!*

*Sam Culbert


Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which

(3) allow people to fully (and safely, mostly—caveat: “they”

don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous

discovery voyage (alone and in small teams, assisted by an

extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-

leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage

“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their

“followers’ ” explorations!

MantraM3

Talent = Brand

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

Source: Ed Michaels et al., The War for Talent

“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 Juergen Schrempp 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]

Message: Talent rules! Women leaders rule!

Talent = Brand.

Become “Talent Obsessed”! Become

“EVP Obsessed”!

Would Craig Venter (Luciano Benetton)

come to work for us?

HR Folks: YOU – not

“marketing” - “OWN” THE “BRAND PROMISE”!

(If you wish.)

Titles!

Manager HRIS to Manager Human Capital

Assets or Manager Employee Marketing*

*IHRIM.link (2-3.2001)

ObsessionGreatness

PerformancePay

Youth DiversityWomenWeird

OpportunityLeading Genius

First Steps

Make a list of the traits you really want to unearth. (TP &

“sense of humor;” GR & jaywalking.)

Promote for TDS/Talent Development Skills.

Work up an EVP.

Truth 1000X

more important in times of Madness!

Message 2001: I’m …

Comfortable with … CHAOS.

UN-Comfortable with … B.S.

Brand Inside

Brand Talent+: The Education Fiasco

Losing the War to

Bismarck

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would

be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating

‘grade-level motor skills.’ ”

Jordan Ayan, AHA!



“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I

reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being

identified by the group as a ‘closet artist.’ The point is: Every school I visited was participating in the

suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

“The main crisis in school today is irrelevance.”

Daniel Pink, Free Agent Nation

“Schools were designed by Horace Mann, E.L. Thorndike, and others to be instruments of the scientific

management of a mass population. Schools are intended to produce, through the

application of formulas, formulaic human beings whose behavior can be predicted and controlled. To a very great extent, schools

succeed in doing this. But in a society that is increasingly fragmented, in which the only genuinely successful people are independent, self-reliant, and

individualistic, the products of school and ‘schooling’ are irrelevant.”

A Different Kind of Teacher, John Taylor Gatto

“Our military structure today is essentially one developed and designed by Napoleon. We should, firstly, functionally integrate the

Army, Navy, Air Force and Marines. You could eliminate half of these command

structures’ vertical steps. Of course, you’d get rid of lots of generals and admirals. The

military doesn’t like that.”

Admiral William Owens, former Vice Chairman, Joint Chiefs of Staff

“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)

In Need of that “White Collar Revolution”

J. D. Rockefeller’s General Education Board

(1906): “In our dreams people yield themselves with perfect

docility to our molding hands. … The task is simple. We will organize

children and teach them in a perfect way the things their fathers and mothers are

doing in an imperfect way.”John Taylor Gatto, A Different Kind of Teacher

Milwaukee: $6,951 per student. Central

administration: $3,481. Instruction: $1,647.

A Different Kind of Teacher, John Taylor Gatto (Research reported in Education Update, Fall 1990)

“The most obvious barrier between our children and the kind of education that can free their enormous potential seems to be the educational system

itself: a vast, suffocating web of people, practices and presumptions,

kindly in intent, ponderous in response.”

George Leonard, Education and Ecstasy

An Unnatural Way to “Learn”

“The time bomb in every

classroom is that students learn

exactly what they are taught.”

Frank Smith, Insult to Intelligence

“What [standardized tests] actually measure is the

tractability of the student, and this they do quite

accurately. Is it of value to know who is docile and who is not? You tell

me.”

John Taylor Gatto, A Different Kind of Teacher

“Schoolteachers aren’t allowed to do what they think best for

each student. Harnessed to a collectivized regimen, they soon give up thinking seriously about students

as one-of-a-kind individuals, regardless of what they may wish were

true.”John Taylor Gatto, A Different Kind of Teacher

“The best evidence that our schools are set up to ‘school’ and not be useful educationally lies in the look of the

rooms where we confine kids. Rooms with no clocks, no telephones, no fax

machines, no stamps, no envelopes, no maps, no directories, no private

space in which to think, no conference tables on which to confer.

Rooms in which there isn’t any real way to contact the outside world where life is going on.”


“Every time I pass a jailhouse or school, I

feel sorry for the people inside.”

Jimmy Breslin, 07.11.2001, on “summer school” in NYC [“If they haven’t learned in the winter, what are they going to remember from days

when they should be swimming?”]

“It is absurd and anti-life to be compelled to sit in confinement with people of exactly

the same age and social class. This cuts children off from the immense diversity of life and the synergy of variety. … It is absurd and anti-life to move

from cell to cell at the sound of a gong every day of your natural youth in an institution that allows you no privacy. … In centuries past, children and adolescents would spend their time in real work, real charity, real adventures, and in the search for mentors who might

teach them what they really wanted to learn.”


“I discovered the brutally simple motivation behind the

development and imposition of all systematic instructional programs

and tests—a lack of trust that teachers can teach and that

children can learn.”


“It is an inescapable reality that students learn at different rates in

different ways. That creates the need for a schedule of sensitivity

that only teachers close to the particular student can devise—not some theory-driven, central-office,

computer-managed schedule.”

Ted Sizer

Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in

featureless rooms … sort children into rigid categories by the use of fantastic measures such as

age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving

them of private time and space …


Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to

discriminate qualities quantitatively … insist that every moment of time be filled with low-

level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their

active learning time to acquire.”


“[One factor contributing to widespread teacher dissatisfaction] is the extremely

shallow nature of intellectual enterprise in schools. Ideas are broken into fragments

called subjects, subjects into units, units into sequences, sequences into

lessons, lessons into homework, and all these prefabricated pieces make a

classroom teacherproof.”


Ted Sizer, on the “logic” of high

schools: “If we spend more than a day on the Bill of Rights, we can’t get to

Grover Cleveland before Valentine’s Day.”

“We interrupt classes with public address system announcements,

utterly forgetting that Hamlet’s soliloquy may lose something from

the interjection of information about where the cheerleaders

should meet after school.”

Ted Sizer

“We parade adolescents before snippets of time. Any one teacher will usually see more than 10 students and

often more than 160 in a day. Such a system denies teachers the

chance to know many students well, to learn how a particular

student’s mind works.”Ted Sizer

“The myth is that learning can be guaranteed if instruction

is delivered systematically, one small piece at a time, with

frequent tests to ensure that students and teachers

stay on task.”


“A substantial amount of testimony exists from highly regarded scientists like [Nobel laureate] Richard Feynman,

Albert Einstein, and many others, that scientific discovery is negatively

related to the procedures of school science classes.”


Messenger: “The mind is a machine, but a virtual machine. A system of systems.”Helen: “Perhaps it isn’t a system at all.”Messenger: “”Oh, but it is. … If you’re a scientist, you have to start with that assumption.”Helen: “I suspect that’s why I dropped science at school as soon as they let me.”

Messenger: “No, you dropped it, I would guess, because it was doled out to you in spoonfuls of distilled boredom.”

David Lodge, Thinks …

But Are They Being Taught to Think?

From MIT & JHU: “Students who receive honor grades in college-level

physics are frequently unable to solve basic problems encountered in a form slightly different from the

one in which they have been formally instructed and tested.”

Howard Gardner, Unschooled Minds

Higgins Knew!

“Andrew Higgins, who built landing craft in WWII,

refused to hire graduates of engineering schools. He believed that they only teach you what you can’t do in engineering school. He

started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000

landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without

engineers.’ ”

Stephen Ambrose/Fast Company

Doing Stuff that Matters!

“Education, at best, is ecstatic. At its best, its most unfettered, the moment of learning is a moment of delight. This

essential and obvious truth is demonstrated for us every day by the

baby and the preschool child. … When joy is absent, the effectiveness of the

learning process falls and falls until the human being is operating hesitantly,

grudgingly, fearfully.”

George Leonard, Education and Ecstasy [1968]

“Children learn what makes sense to them; they learn through

the sense of things they want to understand.”


Per George Miller: Children as

“informavores,” who

“eat up new Knowledge.”


“During the first years of life, youngsters all over

the world master a breathtaking array of

competences with little formal tutelage.”

Howard Gardner, The Unschooled Mind

“’Schooling’ takes place in an environment

controlled by others. … ‘Education’ describes efforts largely self-

initiated for the purpose of taking charge of your life wisely and living

in a world you understand. The educated state is a complex tapestry woven

of broad experience, grueling commitments, and substantial risk taking.”


“We underrate our brains and our intelligence. Formal education has become such a

complicated, self-conscious, and over-regulated activity that learning is widely regarded as

something difficult that the brain would rather no do. … Such a belief is probably well-founded

if the teachers are referring to their efforts to keep children moving through the instructional

sequences that are prescribed as ‘learning activities’ in school. … We are all capable of

huge and unsuspected learning accomplishments without effort.”


“Each of us has a design problem to solve: to create from the raw material around us the curriculum for a good life. It isn’t easy, and it isn’t the same

for any two people.”


Mary Foley, homeschooling mother of four, Cape Cod: “If we are not free to educate our children, liberty is an illusion. I do not have a curriculum. The state does not have the power to standardize children. My method

has been successful enough to produce a daughter who is a member of the National Honor Society and twin sons

who tested in the top one percent on a national placement test for two consecutive years. The

priorities of our curriculum are daydreaming, natural and social sciences, self-discipline,

respect of self and others, and making mistakes.”


“I want to give you a yardstick, a gold standard, by which to measure good schooling. The Shelter Institute

in Bath, Maine, will teach you how to build a three thousand square-foot, multi-level Cape Cod home in

three weeks’ time, whatever your age. If you stay another week, it will show you how to make your own posts and beams; you’ll actually cut them out and set them up. You’ll learn wiring, plumbing, insulation, the

works. Twenty thousand people have learned to build a house there for about the cost of one month’s tuition in

public school.”


“The most extraordinary result was the unanimity and conviction with which boys and

girls—aged 8 to 11—called for a broader curriculum, with much more science, history,

geography, history, art, craft, woodwork, cooking, electronics, cooking and technology.

They wanted, above all, more work which

allowed them to think for themselves, to experiment, to engage in

first-hand observation.”


“Learning is

never divorced from feelings.”


The Learner’s Manifesto

The brain is always learning.Learning does not require coercion.

Learning must be meaningful.Learning is incidental.

Learning is collaborative.The consequences of worthwhile learning

are obvious.Learning always involves feelings.

Learning must be free of risk.


U.C. Ed Dean Walter Karp: “From the first grade to the twelfth, from one coast to the other,

instruction in America’s classrooms is almost

entirely dogmatic. Answers are ‘right’ and answers are

‘wrong,’ but mostly answers are short.”


Richard Paul, Director, Center for Critical Thinking: “We need to shift the focus of learning from

simply teaching students to have the ‘right answer,’ to teaching

them the process by which educated people pursue

right answers.” Frank Smith, Insult to Intelligence

James Coleman, 1974: “Develop in youth the capabilities for

engaging in intense concentrated involvement in

an activity.”Source: Mihaly Csikszentmihalyi & Barbara Schneider,

Becoming Adult

“While not every child will develop interests as fascinating as Darwin’s, without the enthusiasm that

leads to intense, concentrated activity, a child will likely lack the perseverance needed to face the future

successfully. We may not know what jobs will be available to young people ten years from now. … But

to the extent that teenagers have had experiences that demand discipline, require the skillful use

of mind and body, and give them a sense of responsibility and involvement with useful

goals, we might expect the youth of today to be ready to face the challenges of tomorrow.”

Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult

“Growing up to be a happy adult gets more and more difficult as occupational roles become

more vague and ephemeral. Young people can no longer count on a predictable future and cannot expect that a set of skills learned in

school will be sufficient to ensure a comfortable career. For this reason, we need to take a long look at the conditions that prepare youth for a changing, uncertain future.”

Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult

Gatto’s Lab School

ONE. Independent Study. A day out of the school building, chasing ONE BIG

IDEA. TWO. Apprenticeship. THREE. Community Service, a day a week.

FOUR. Team up with parents, yours or someone else’s, for Family Teamwork

Curriculum. FIVE. Class work.

Jamaal Watson, 13, from Children’s Express Quarterly; from John Taylor Gatto, A Different Kind of Teacher

Gardner’s MI7: Linguistic, Logical-mathematical,

Spatial, Musical, Bodily-kinesthetic,

Interpersonal, Intrapersonal.

“Actual content may not be the issue at all, since we are really trying to impart the idea that one can deal with new areas of knowledge if one

knows how to learn, how to find out about what is known, and how to abandon old ideas when

they are worn out. This means teaching ways of developing good questions rather than memorizing known answers , an idea that

traditional schools simply don’t cotton to at all, and that traditional testing methods are

unprepared to handle.”

Roger Schank, The Connoisseur’s Guide to the Mind

“Apprenticeships & Projects” – Howard

Gardner

EBF*to

EBI*** Education By Fiat

** Education By Interest

“When they tell the story of their project, they are irresistible to admissions officers!”

Dennis Littky

“If we are to configure an education for the world of tomorrow, we need to take the

lessons of the museum and the relationship of the apprenticeship

extremely seriously. … to think of the ways in which the strengths of a

museum atmosphere, of apprenticeship learning, and of

engaging in projects can pervade all educational environments.”

Howard Gardner, Unschooled Minds

“Questions, questions, questions. They disturb. They

provoke. They exhilarate. They intimidate. They make you feel a little bit like you’ve at least temporarily lost your marbles. So much so that at times I’m positive that the ground is shaking and shifting under our

feet. Welcome to Socrates Café.

Christopher Phillips, Socrates Café

Most important 3 letters:

Why?

Tom’s Edu3M

Manifesto**Manifesto for Education in the 3rd Millennium

Education3MLearning is a normal state.Children are learnavores.

Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]

We learn at different rates.We learn in different ways.

Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.

Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.

There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real

world” standards.

Education3M

We learn most/fastest/most completely when we are passionate about what we are learning and it

matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/Learning by

Internship.Classrooms are abnormal places.

We need changes of pace. [Japanese recesses between each class.]

International test scores are not correlated with hours-per-year in class.

Big classes are slightly problematic. Big schools suck. Period.

Education3M

“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]

U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.

Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]

Teachers need enough space-time-flexibility to get to know kids as individuals.

Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

Education3M

Our toughest “learning achievement”—mastering our native language—does not

require schools, or even competent parents. [It does require a desperate need-to-know.]

Great teachers are great learners, not imparters-of-knowledge.

Great teachers ask great questions—that launch kids on lifelong quests.

The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly

sophisticated questions—just ask a ski instructor or neurosurgeon.

Education3M

Most schools spend most of their time setting up contexts in which kids learn not to like

particular subjects. [Evidence shows that such anti-learning sticks!]

Vigorous exploration is normal … until you are incarcerated in a school.

“Bite size” education-learning is neither education nor learning.

Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in

the hyper-structured classroom.

Education3M

The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the

wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail

to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.

Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”

Schools of “education” should by and large have their charters revoked.

Education3M

“Education” must “develop in youth the capabilities for engaging in intense concentrated

involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]

Stability is dead; “education” must therefore “educate” for an unknowable, ambiguous,

changing future; thence, learning to learn & change is far more important than mastery of a

static body of “facts.” [Was the “War of the Roses” really over roses? (1) I don’t remember. (2)

Not remembering has not been a handicap.]

Education3M

I never took a speech course.Hemingway couldn’t spell.

Etc.Etc.Etc.

The Horror: We get it all wrong. We know how to do “it” right!

My Education: People. (Damn few.) Mrs. Landers. Mrs. Gaver. Miss

Churchill. Mr. Chapin. Mr. Hooper. Prof. Liang. Prof. White.

Capt. Anderson. Gene. Allen. (Warren.) (Susan.)

My “educators’ ” secrets: They made me fall in love.

They helped me figure out who I was.

Lucky me: Mom, Lucy, Mabel, Shirley, Tom, Paul, Roger,

Mr. Chapin, Richard, Ta, The Dutchman, The Economist, Gene, Karl, Allen, Herb, Ian, Warren, Herb, Dennis, Mike,

Susan. (They are my life!)

Bringing Out the Best

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

Why Don’t Most Biz Mgrs. Think This Way?

“Coaching is winning players over.” *

Phil Jackson

*Not: “planning,” “implementing,” “clear communication,” “getting the org chart right.”


Instead they (1) provide a context which is

marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow

people to fully (and safely?) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive

self-constructed network) to (5) go-create places they (and their teachers-leaders) had never dreamed existed/

they could go.

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.”




and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ You can tell

that this is really Prof. C’s life.’ ”


“One student said she could not describe her good teachers because

they differed so greatly, one from another. But she could describe her bad teachers because they were all

the same: ‘Their words float somewhere in front of their faces, like

the balloon speech in cartoons.’ ”


Brand InsideReprise:

THINK WEIRD: The High Standard

Deviation Enterprise

Reprise: Brand Inside

The White Collar Revolution & The Web [DYB.com!]

PSF as Building Block [Work Worth Paying For/Source of Market Cap]

Work Worth Paying For = WOW Projects!

Brand You [Everybody!]

The Great War for Talent!

Boss-free Implementation of STM! [F2F]

“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

Saviors-in-Waiting

Disgruntled CustomersFringe CompetitorsRogue Employees

Edge SuppliersWayne Burkan, Wide Angle Vision: Beat the

Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue

Employees

“Enormous sums of money are invested to reduce cycle time, improve quality,

reengineer … Much of this money is simply wasted. The waste is due to companies’

inability to develop wide-angle vision and tap into the … power of the edge.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe

Competitors, Lost Customers, and Rogue Employees

“Corporate consciousness is predictably centered around the

mainstream. The best customers, biggest competitors, and model

employees are almost invariably the focus of attention.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,

Lost Customers, and Rogue Employees

“Why smart companies do dumb things: The standard a

successful company requires for a new winning strategy is far higher than the standard anyone else

would ask for.”Seth Godin, Zooming

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

“Too many companies rely on benchmarking against industry

leaders. The problem is that those companies are simply catching up to what’s already been done,

while the leaders are moving on to some new advantage.”

David Crane, on Michael Porter’s Canadian competitiveness study, which discovered an

Innovation Deficit (05.05)

“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

Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual

Pioneer [Weird] Acquisitions

Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]

Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]

Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]

Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board

Weed Un-weird [“One Sigma” “Talent,” etc.]

Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird

R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]

Sense of Humor [Rhapsodize Over Thine Cool Failures!]

Re-enforce a “Culture of Disrespect”/PassionatePiracy

“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

“The future has already happened. It’s

just not evenly distributed.”

Adrian Slywotzky

“Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the

future.”Adrian Slywotzky, Mercer Consultants

“I made a note. I’m going after

[PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt.

Things are going too well.”

Sales Exec, high-tech superstar

“Generally, disruptive technologies underperform established products

in mainstream markets. But they have other features that a few

fringe (and generally new) customers value.”


Elliott Masie, on desirable eLearning vendors: “I want a ‘sandbox partner,’ someone

who will openly say, ‘This is not the last word; we

don’t know exactly where we’re going.’ ”

“There is an ominous downside to strategic supplier relationships. An

SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices

need not apply.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe

Competitors, Lost Customers, and Rogue Employees

The “Flypaper Strategy”: Trolling for the Weird Ones!

Event Marketing: Idea Faires, Newsletters, etc.Grants & Sabbaticals/

Customer-Vendor TeamsHall of Freaky Fame

MBWA: “I.D. the freaks, please.”Use colorful language in all communications

Deep Dip

“But don’t we need some

grout between the tiles?”

Button-down Org H.S.D.E. .

• Acquire for market share• Suck up to biggest customers• Pursue “strategic vendors”• Bigger is better• Accept assignments as given• Hire 4.0s from “top schools”• Promote when they’ve “paid

their dues”• Appoint a “prestigious” board

• Hang out with my pals• R.A.F.• Be “professional” at all

times/Honor thine elders

• Acquire for innovation• Partner with cool customers• Seek out pioneering vendors• Break it up … to refresh• Reframe all tasks to innovate• Hire “intriguing,” wherever• Promote tomorrow if the work

product is weird and WOW• Appoint an interesting,

headstrong board• Take a freak to lunch today• F.F.F.• Stay loose, stay cool/The hell

with thine elders

New Organizational World: Shifts of Emphasis

Staffing Fat ThinOrganization Vertical HorizontalWorkforce Homogeneity DiversityPower Source Status/Command Rights Expertise/RelationshipsLoyalty Company ProjectCareer Asset Organizational Capital Reputational Capital

Source: “The Workforce of the Future,” IHRIM Journal (12.2000)

Enron’s secret: the Memoryless Enterprise

The Cortez Strategy!

Message: TAKE SOMEONE NEW & WEIRD TO LUNCH

TODAY OR TOMORROW. [Inundate yourself with weird.]

?????“Come up with three

‘Crazy Ideas,’ one of which might

work.”

Fr Timothy Radcliffe, Master of the Dominicans,

to his friars

Must Have2001: Multiple, competing,

independent discovery &

business models!

?????: Get better organized to do good

workvs.

Get better disorganized to do great work

N.W.O.: Was Is 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

Tomorrow’s Organizations: 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 GORGEOUS 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.”



“Analysts said we don’t care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see 2 or 3 years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell. They

said, ‘Oh my gosh, you need revenues to grow earnings over time.’

Well, Duh!”Dick Kovacevich, Wells Fargo (in ABA Banking Journal)

Forces @ Work II

The Sameness 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

“The world is so competitive today it’s not going to let everybody do

the same thing.”

Dick Kovacevich, Wells Fargo (ABA Banking Journal)

“Our basic business belief is that we don’t

want a parity product.”

Stephen Sanger, CEO, General Mills

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

“A boom in high-tech fakes is shifting into overdrive. These

aren’t the old, tacky knockoffs that can be spotted a mile away, but a new breed of look-alikes born of

high-tech manufacturing techniques and savvy packaging.”

WSJ 02.16.01

“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

10X/10X

Message: “Similar” kills!

Stomp out the Sameness Epidemic!

Brand Outside

Strategy 1A:Use E-Commerce to

Re-invent Everything!

OVERVIEW

Cisco!

90% of $20B (=$50M/day)Annual savings in service

and support from customer self-management: $550M

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]

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)

http://www.business2.com/articles/mag/0,1640,9023,00.html



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)

GM/Ford/DaimlerChrysler/Renault/Nissan/Oracle/CommerceOne

Covisint (02.2000)$240B (+$500B)90,000 Suppliers

$2-3,000/Car42 to 12-18 MonthsSource: Business2.0 (02.2001)

“This is the first meter of a 10-kilometer race.

Eventually, all markets will come to resemble today’s foreign exchange market.”

Hamid Biglari, Head of Corporate Strategy, Citigroup, in “GIGATRENDS”, Wired 04.01

X1,000,000

TowTruckNet.com

COMMUNITY SERVICES!

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)

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)

Webcor. Construction. Web site for each project. Instant info on

status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage.

Source: Business Week (09.00)

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!

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“The Age of the

Never Satisfied Customer”

Regis McKenna

“The concept of being always on, always connected, is very powerful. … Companies are going to need to reach consumers across all

the different transmission media and devices –

across wireless, on cell phones, into cars, onto airplanes, into cabs,

into the home and TV set. … It’s not just the message – now you’ve got a connection, what do you do

with that?”Marc Andreessen [Mosaic, Netscape, Loudcloud]

“HR Employee Self-Service/

ESS”John Pask/IHRIM

B2E*

*Business to Employee (IHRIM.link)

“Systems supporting one-to-one employee relationships

will add competitive advantage.” “Employees

expect far more access and control over their own

information.”Source: IHRIM.link (2-3.2001)

“Managing Benefits:

Let Workers Do It”

Source: Headline, Money & Medicine, New York Times (12.06.00); cited are specialist

companies such as eBenX and Vivius of Minneapolis

“Human resource management (HRM) systems will begin to look more like customer

relationship management (CRM) systems—where we must know as much about our people

(existing and future) as we do about our customers.”

“Applications in the future will be much more personalizable. Every user will have a customized way of working with their

information. There will be more of a self-learning and intuitive model than we have today.”

Source: IHRIM Journal (12.2000)

Message HR: Gen X thinks you’re

cretins!

Source: IHRIM.link (2-3.2001)

Radical

Simplicity!

“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

http://www.useit.com/

http://www.useit.com/

“Revenues on the Web

are determined almost completely by

usability.”Jakob Nielsen (The Economist 04.28.01)

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)

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!

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”

One Person’s Opinion [11.2000]

TP to reporter: “Service is MUCH better! Would you go

back to bank tellers and phone operators? Value that I place on a smile: 3 on a scale of 10. Value I place on fast “digital”

response: 11 on a scale of 10!!”

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]

http://www.forbes.com/forbesglobal/00/0724/0314099a.htm

“Where does the Internet rank in priority?

It’s No. 1, 2, 3,and 4.” Jack Welch

GE & the Web

Purchasing: 2000: $6B; 2001: $15B

Sales: 1999: $1B; 2000: $7B; 2001: $20B+

Source: Business 2.0 (05.01)

Ge Miscellany …

Polymerland: 75% to Web

Appliances: $5 to 20 cents, Web vs. call Service Rep; 20

million calls per year

Source: Fast Company

“We’ve put the word out to all of our suppliers: by the end of the year [2000] we’ll only do purchasing

over the Internet.”John Paterson, C.P.O., IBM

[$50B from 18,000 suppliers]

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

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

The eProcess Edge

Embed processes in software (My.Yahoo, MySchwab)

Outsource processes electronically (Gateway and eCredit)

In-source new capabilities electronically (Fidelity’s services from outside)

Handle exceptions exceptionally (Schwab)

Source: The eProcess Edge, Peter Keen & Mark McDonald

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.

“E-business is the final nail in the coffin

for bureaucracy at GE.”

Jack Welch/GE Annual Report 2000

“Hyperlinks subvert hierarchy!”

The Cluetrain Manifesto

http://www.cluetrain.com/

[ 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]

“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

“Top management has to spend time on the details. They aren’t used to being detail oriented. They have to get back to figuring out, ‘How is it we

will take an order on the Internet?’ ‘How will we communicate with our suppliers, and force them to use the

Internet?’ ‘What, exactly, do the business processes look like?’ ”

Ray Lane, Kleiner Perkins

Magic!

[Inter]networked Markets

meet …

[Intra]networked Workers

Source: The Cluetrain Manifesto: The End of Business as Usual

“Supply Chain” 2000:

“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized

home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My

Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe

Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.”

Red Herring (09.2000)

“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.]

A DREAMER’S MEDIUM!

“There’s 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 dreamed

before!

“We want to be the air traffic

controllers of electrons.”


Message: Survivors will move all their operations

to the Web. Now. Web = Encompassing … or else.

Message 2001: Only idiots pull in their [investment]

horns during a downturn.

“Believe in the Internet … MORE

THAN EVER.”Andy Grove, Cover quote, Wired (June 2001)

The Real “New Economy”

“Only a few times in history have interaction costs

radically changed—one was the railroads, then the telegraph

and telephone. We’re going through another one right now.”

Jeff Skilling, Enron

The Real “New Economy”

“Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on the board stays the same but the capabilities of the pieces randomly change. Knights now move like bishops, bishops like rooks … Technology does that. It rubs out boundaries that separate industries. Suddenly new competitors with new

capabilities will come at you from new directions. Lowly truckers in brown vans become geeky

logistics experts. …”

Business 2.0 (9-10.2001)

THIS IS A BIG

DEAL!







Karl Marx Meets Adam Smith: Lessons from the Bush

(1) Specialization-excellence. (Or death.) (2) Luck is irrelevant. (In a drought, drought

specialists survive.) (3) Bigger is not necessarily better. (All hail the termites +

bacteria!) (4) Efficiency matches effectiveness: no wasted motion, no

bureaucratic B.S., very low “transaction costs.” (I’net does this. C.f. Dell.) (5) Hyper-interdependence. (The power resides in the

network: Self-organization is the rule. I’net redux. Viral marketing. “Farm-out” is the norm.)

Brand Outside

Strategy 1B:Healthcare et al.:

Embracing ane-Led Age of

Self-Determination

The control revolution. The potentially monumental shift in

control from institutions to individuals made possible by new technology such as the Internet.

Source: Introduction, The Control Revolution, Andrew Shapiro

“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

“Parents, doctors, stockbrokers, even military leaders are starting to

lose the authority they once had. There are all these roles premised on access to privileged information. …

What we are witnessing is a collapse of that advantage,

prestige and authority.”Michael Lewis, next

“Imagine a world where a citizen could search the globe to

assemble ‘my government,’ the ultimate in customized,

customer-centric services. Health care from the Netherlands, business incorporation in

Malaysia …”

Don Tapscott

“Greenspan Discovers Investors Are the Economy”

Source: Headline, AOL, 01.26.01

“I’m old enough to remember when you went into a bar in the summer,

they were watching a baseball game. Now,

they’re watching CNBC.”Byron Wien, Chief U.S. equity strategist,

Morgan Stanley Dean Witter

EBF*to

EBI**

* Education By Fiat** Education By Interest

“When they tell the story of their project, they are

irresistible to admissions officers!”

Dennis Littky

“Greater opportunity for women is probably the most significant gain for human freedom in

the last century.”Andrew Sullivan, The New Republic

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!

Message: We are on the

cusp of a “People’s [customer/ patient/ citizen/ etc.]

Revolution.”

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

Corporate Resistance to “It”

“It all goes back to fear of losing control!”


Impact #1(?):

Healthcare

HealthCare2001

Consumerism X Demographics X

IS/Internet X Info Consolidators X Genetics & Devices

= YIKES!

1. Consumerism (Patient-centric Healthcare)

“A seismic shift is underway in healthcare. The Internet is

delivering vast knowledge and new choices to consumers—raising their

expectations and, in many cases, handing them the controls.

[Healthcare] consumers are driving radical, fundamental change.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

“We expect consumers to move into a position of dominance in the early

years of the new century.”

Dean Coddington, Elizabeth Fischer, Keith Moore & Richard Clarke, Beyond Managed Care

Today’s Healthcare “Consumer”:

“skeptical and demanding”

Source: Ian Morrison, Healthcare in the New Millennium

“Medical care has traditionally followed a ‘professional’ model, based on two assumptions: that patients are unable to become

sufficiently informed about their own care to allow them a pivotal role, and that medical judgments

are based on science.”

James Blumstein, Vanderbilt Law School

“He shook me up. He put his hand on my shoulder, and simply said,

‘Old friend, you have got to take charge of your own

medical care.’ ”Hamilton Jordan, No Such Thing as a Bad Day (on a conversation with a doctor pal, following

Jordan’s cancer diagnosis)

“If healthcare organizations don’t wake up, smell the coffee – and get online with real services, transactions, and

more for these e-consumers to do – the newly empowered e-consumers will

become even more disgruntled with the hornet’s nest of paperwork that plagues

the system.”Douglas Goldstein, e-Healthcare

“What’s needed are comprehensive strategies that leverage the latest

technology and provide the services that eHealth consumers are demanding,

including convenience and customized services such as online physician

interaction or online management of health benefits and customized disease

management programs.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

“It may be the most far-reaching evolution of them all: the metamorphosis of passive patient into consumer – and well-informed,

assertive consumer at that. The defining axiom of traditional medicine – ‘doctor’s

orders’ is being turned on its head. These days it’s the patients who are armed, the

doctors who must get wired to keep nimble.” “E-health is the new house call.”

Richard Firstman, “Heal Thyself,” On Magazine (04.01)

“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention bias. Info availability (disease, health,

docs, support groups, outcomes). Boomers (“I’m in charge!” Discretionary $$$$ to spend:

cosmetic surgery, vision improvement, fertility,

etc.). Self-care (chronic disease). High expectations (genetics, etc.) …

Consumer Imperatives

ChoiceControl (Self-care, Self-management)

Shared Medical Decision-makingCustomer Service

InformationBranding

Source: Institute for the Future

“E-consumers …

want knowledge

are already connected

want convenience

want it to be all about themwant control.”

Douglas Goldstein, e-Healthcare

“No one currently ‘owns’ the eHealth Consumer. It’s an

open playing field.”Deloitte Research, “Winning the Loyalty

of the eHealth Consumer”

“We find that eHealth consumers are willing to pay

– and even switch health plans – for the services they

most want.”Deloitte Research, “Winning the Loyalty

of the eHealth Consumer”

“Savior for the Sick”

vs.

“Partner for Good Health”

Source: NPR/VPR 08.15.00

“The ‘curative model’ narrowly focuses on the goal of cure. …

From many quarters comes evidence that the view of health

should be expanded to encompass mental, social and

spiritual well-being.” Institute for the Future

“In many ways, the nursing profession is the most qualified to respond to current changes in the health system. Nurses’ training focuses more on the

behavioral and preventive aspects of health care than does that of

physicians.” Institute for the Future

“A 7-year follow-up of women diagnosed with breast cancer

showed that those who confided in at least one person in the 3

months after surgery had a 7-year

survival rate of 72.4%, as compared to 56.3% for those who

didn’t have a confidant.”Institute for the Future

Internet User, F41

$63,000 HHI64% work FT54% moms

6 hours/week onlineSource: NetSmart Research

“Self-medication is the wave of the future, whether the [pharmaceutical] industry

likes it or not.”

Wall Street Journal (5-23)

DTC > Professionals

ClaritinPravachol

ZybanEvista

PropeciaPrilosecPrimera

Source: JAMA

“Online Medical Records Seen Empowering

Patients”

Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K

patients @ CareGroup

Determinants of Health

Access to care: 10%Genetics: 20%

Environment: 20%

Health Behaviors: 50%Source: Institute for the Future

Make time for your most important

asset. Your health.

Ad for Mayo Clinic Executive Health Program/Jacksonville, Orlando Airport

Message: Patients aren’t.

Consumers [will] rule.

2. Demographics: The BOOMERS Reach 55!

Boomer World

“From jogging to plastic surgery, from vegetarian diets

to Viagra, they are fighting to preserve their youth and

defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the

Information Revolution and Branding”

“Pick up any copy of Glamour or Men’s Health, and you’ll see pages of advertisements encouraging readers

to enlarge their breasts, retard baldness, correct their vision,

improve their smile, or relieve stress through herbs, massage therapy,

acupuncture – you name it.”Coddington, Fischer, Moore & Clarke,

Beyond Managed Care

Message Boomer: (1) “There are

l-o-t-s of us.” (2) “We have

the $$$$$$. (3) “We’re/I’m in charge!” (4) “We’ll take no

guff from anyone.” (5) “We

know the emperor has no clothes.”

3. The IS/Web REVOLUTION

Info Revolution

Consumerism (research, consultation, B2C, etc.)

Clinical Info Systems (guidelines and outcome measurement, etc.)

100% Web-based (internal) SystemsElectronic Medical Records

Patient-physician email-consultationTelehealth-Remote Monitoring

(biosensors, home testing, etc.)

Telemedicine (consultation, invasive treatment, “global medical village,” etc.)

“We’re in the Internet age, and the average

patient can’t email their doctor.”

Donald Berwick, Harvard Med School

Henry Lowe, U. of Pitt. School of

Medicine: “Broadband, Internet-based,

‘multimedia’ electronic medical

records”

“Doctors Without Borders”

World Clinic/Dr. Daniel Carlin: e-mail consultation & treatment for ex-pats, global execs, etc. Developing world: “They have the primary care doctors,

but no infrastructure to train specialists. We become the

specialists.” More: “Telemedicine Kiosks in Central America.” Etc.

*On Magazine 04.01

Telemedicine: E.g. …

HANC* [Home Assisted

Nursing Care]

*BP, ECG, pulse, temp

Telemedicine …

Reduces days/1000 patients and physician visits for the chronically ill

Decreases costs of managing chronic disease

Expands service areas for providers

Reduces travel costs to and from medical ed seminars

Douglas Goldstein, e-Healthcare

Detroit Med Center: $100M IS Makeover

Experiment: Surgical residents equipped with Palm IIIxe. Med Director: “It’s not unusual to have

a team of 5 or 6 residents responsible for the patients of 25 doctors. For each resident, that

could mean seeing 40 patients spread across 10 floors and 5 buildings.” Records work was

manual; but “Now you export the list of patients to your Palm, with the room number for each

patient and with lab results from the last

72 hours.”

“Without being disrespectful, I consider the U.S. healthcare

delivery system the largest cottage industry in the world. There are

virtually no performance measurements and no

standards. Trying to measure performance … is the next revolution in healthcare.”

Richard Huber, former CEO, Aetna

“A healthcare delivery system characterized by idiosyncratic

and often ill-informed judgments must be restructured

according to evidence-based medical practice.”Demanding Medical Excellence: Doctors and

Accountability in the Information Age, Michael Millenson

“As unsettling as the prevalence of inappropriate care is the enormous amount of

what can only be called ignorant care. A surprising 85% of everyday medical

treatments have never been scientifically validated. … For instance, when family

practitioners in Washington were queried about treating a simple urinary tract infection, 82

physicians came up with an extraordinary 137 strategies.”

Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“With little fanfare, a gathering revolution is transforming the everyday

practice of medicine. Owing more to laptops than lab coats, this

is an information revolution, one that is beginning to yield answers to the

most basic questions that haunt those who are sick: Who shall live and

who shall die?”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

“Quality of care is the problem, not managed care.”

Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)

RAND(1998): 50%, appropriate preventive care. 60%,

recommended treatment, per medical studies, for chronic

conditions. 20%, chronic care treatment that is wrong.

30% acute care treatment that is wrong.

CDC 1998: 90,000 killed and 2,000,000 injured

from nosocomial [hospital-caused] drug

errors & infections

Various studies: 1 in 3, 1 in 5, 1 in 7, 1 in 20 patients “harmed by

treatment”


“Established state-of-the-art cancer care – about

which there is no longer any debate – is

erratically applied.”Source: Institute of Medicine’s National Cancer Policy Board

“In health care,

geography is destiny.”

Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and

Accountability in the Information Age, Michael Millenson

“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural

consequence of a system that systematically tracks neither its processes nor its outcomes,

preferring to presume that good facilities, good intentions and good training lead automatically

to good results. Providers remain more comfortable with the habits of a guild, where

each craftsman trusts his fellows, than with the demands of the information age.”

Michael Millenson, Demanding Medical Excellence

“In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to calculate medication doses. Eight

out of 10 made calculation mistakes at least 10% of the time,

while four out of 10 made mistakes 30 % of the time.”


“With meticulous detail, historical accuracy, and an uncommon

understanding of the clinical field, Millenson documents our struggle

to reach accountability.”

Journal of the American Medical Association, on Demanding Medical

Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“Patient by patient, problem by problem – drug reactions, hospital

caused infections – Salt Lake City’s LDS Hospital has attacked treatment-

caused injuries and deaths. One of the secrets of LDS’s success is a custom-

built clinical computer system that may serve as a national model for how

to save patient lives.”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

Message: (1) Effective &

encompassing use of IT is the healthcare revolution. (2) Get all-

the-way on board or get discarded. (3) The situation as

it stands is pathetic.

4. The “Consolidators”: Fat or Thin?

WebMD (or heirs

& assigns)

“Virtual health care webs force providers to focus on their areas of excellence and to

invest in areas where they can generate a sustainable

competitive advantage.”

Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide

“The future of hospitals is murky. A combination of technological advances,

managed care, and changes in Medicare reimbursement policy

means that the underlying demand for inpatient services

will continue to fall.”Institute for the Future

“America has twice as many hospitals and physicians as

it needs.”Med Inc., Sandy Lutz, Woodrin Grossman

& John Bigalke

Message: Somebody is

gonna get this right!

5. Genetics & Devices

Genetics & Devices

Pharmacogenomics (“mini”busters, rational drug design, personalized medicine,

gene therapy, vaccines--20% to 50% prescriptions not work)

Neural Stem Cells

Minimally invasive surgeryAdvanced imaging

“Pharmacogenomics could

fundamentally change the nature of drug discovery and marketing,

rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and

money to craft a single medicine with mass-market appeal.”

The Industry Standard (05.28.01)

“Recognizing that a single misspelled gene means the difference between being

poisoned and being cured was the first victory for the new

science of pharmacogenetics.”

Newsweek (06.25.01)

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)

Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-

guided munitions, and it marks a sea change for the industry. The implications for existing

business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline:

“minibuster.” Rob Arnold, Euro head of life sciences, PWC: “Once you start dealing with minority

treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make

money could be at a real advantage.”

“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the

operating table. That day may come sooner than you think.”

Newsweek (06.25.01)

“There is no question in my mind that the future of heart

surgery is in robotics.”

Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-

bypass surgery

Message Summary: (1) An unparalleled time for

imagination and bold action. (2) A time of unprecedented

opportunities. (3) A time

of unprecedented risk.

Craig Venter, Celera Genomics

Bill Haseltine, Human Genome Sciences

Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 70M uninsured. 90K killed and 2M injured p.a. in hospitals. 85% treatments

unproven. Cure depends on locale in which treated. 50% prescriptions not

work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybody’s mad and feels powerless:

docs, patients, nurses, insurers, employers, hospital administrators

and staff.

“Will biotechs be any better at [the new varieties of] drug discovery than Big Pharma? In the

aggregate … they will be. There is nothing the small companies are doing that the large cannot. [But] research programs at big

companies can meander for years. ‘It’s much more Darwinian in biotech,’ says [Triangle

Pharmaceuticals founder and former head of R & D at Burroughs Wellcome] David Barry.

‘Investors tend to be much more demanding in their expectations than any internal review

organizations in large companies.’ ”

Fortune/07.23.01

Is your strategy centered around customer-client-

patient-citizen empowerment & self-

determination? Hint: This means letting go of

traditional sources of power!

Message: We are on the

cusp of a “People’s [customer/ patient/ citizen/ etc.]

Revolution.”

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

Corporate Resistance to “It”

“It all goes back to fear of losing control!”


Brand Outside

Strategy 2A:

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

$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!)



Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave

their mate. WOMEN: women controlled by the men in their lives,

who would rather be dead than oppressed.

Source: Judy Rosener, America’s Competitive Secret

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness

tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned

sensory skills than men.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s

friends, hopes, dreams, romances, secret fears, what they are

thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”


“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes

to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,

but can never find things in fridges, cupboards or drawers.”


“Female hearing advantage contributes significantly to what is

called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.

They are excellent at imitating animal sounds.”


Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps: Women love to

talk. Men talk silently to themselves. Women think aloud. Women talk, men

feel nagged. Women multitask. Women are indirect. Men are direct. Women talk

emotively, men are literal. Men listen like statues. Boys like things, girls like

people. Boys compete, girls cooperate. Men hate to be wrong. Men hide

their emotions.

“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or

fixes a leaking tap.”Barbara & Allan Pease, Why Men Don’t Listen &

Women Can’t Read Maps

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)

Investment Club Returns

Women-only clubs 1997 … 17.9%Mixed … 17.3%

Men-only … 15.6%

Source: National Assoc. Investors

Value Line: Top State* Investment Clubs 2000

8 … All male19 … Coed

22 … All FEMALE

* VT & Maine not included; D.C. included

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

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

“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.”


[“The Hollywood scripts that men write tend to be direct and

linear, while women’s compositions have many

conflicts, many climaxes, and many endings.”

Helen Fisher, The First Sex: The Natural Talents of Women and How They Are

Changing the World]

[“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female

friends. When days go by without that connection, I feel

like a radio playing in an empty room.”

Anna Quindlen]

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

The New New Jiffy Lube

“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the

female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation

required’ experience.”

New JL: “Control over her environment. Comfort in the service setting. Trust that her car

is being serviced properly. Respect for her intelligence and ability.”

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!

“Honey, are you sure you have

the kind of money it takes to

be looking at a car like this?”

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

Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How

Retailing’s Most Successful Stay that Way”

Presenting Experts: M = 16;

F = ??(272?)

0

Some Possible First Steps

Data! (market research/best practices)

Women as project managers/critical mass for many/most new product &

marketing teams

Strategic recruitment & promotion program (D&T)

“Critical Mass” of women on the Board (“rule of three”)

“Amazing, now that I think about it. A bunch of guys --

developers, architects, contractors--sitting around

designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

Brand Outside

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

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%)

“NOT ACTING THEIR AGE: As Baby Boomers

Zoom into Retirement, Will America Ever Be the

Same?”USN&WR Cover/06.01

[ Member Growth: 1987 – 1997

18 – 34: 26%35 – 49: 63%

50+: 118%Source: IHRSA]

TP to IHRSA: Look this way! I am your ideal body

type!

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

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

“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

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!

“If you’re 35 years old and younger, you’re still acquiring possessions. If you’re

between 35 and 50, you’re buying services. And if you’re over 60, you’re buying experiences. Much of our marketing

culture is Gen X, and they’re focusing on themselves and Gen Y, and not doing a

particularly great job of focusing on boomers and seniors.”

Paco Underhill, Business Week OnLine, 01.04.01

Message: WHAT AN [overlooked] OPPORTUNITY!

60>20**Italy, first time in human history

Source: Ken Dychtwald, Age Power

Census Y2000

A First: Married couples with children < 25% of

households! (23.5% vs. 45% in ’60)

35-54: Up 32%, to 82M (“This age group is used to redefining>” – Dan Growhoski,

True North Communications)

Brand Outside

Strategy 2C:

Welcome to “Green World”!

And #3: GREEN?????: 50% to 36%: Protect Environment >

Economic Growth.

58% to 34%: Protect Plants & Animals > Preserve Private

Property Rights.

“Of all the ways the company will be judged over the next

decade, none will be greater than our

response to the issue of climate change.”

William Clay FORD Jr.

E.g.: Genetically Altered Food

Would eat: M, 71%; F, 50%

Give to children: M, 59%; F, 37%

Pay more for non-altered: M, 35%; F, 47%

Source: www.pulse.org & USA Today

No: “Target Marketing”

Yes: “Target

Innovation” & “Target Delivery Systems”

Brand Outside

Strategy XX:

Global is for Everyone!

THE EIGHT “RULES”

Rule #1

There’s no such thing as “too small to

be global.”[GET A LIFE.]

Rule #2

If “it” is [truly] good … then it’s good

enough for … THE WORLD.

Rule # 3

When?

Now.

Rule #4

Hang out … vigorously!

Rule #5

Seek Talent!Send Talent!

Message(s) ABB, Shell

ELITE Global CadreGenuinely Global BOARD

Rule #6

Glom onto a [modest-sized] partner … who

loves/ “gets” you!

Rule #7

Tailor!! [But don’t give

away the store.]

Rule #8

Phil Crosby notwithstanding,

you’ll not [likely] “get it right the first time”!

Brand Outside

Strategy 3A:

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

“What’s imperative is the creation of a style that

becomes a culture linking you to the community. You

can only do that through good design.” – Anita Roddick

Source: Design Council [UK]

“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

“The good 10 percent of American product design comes

out of big-idea companies that don’t believe in talking to the

customer. They're run by passionate maniacs who make everybody’s life miserable until

they get what they want.”

Bran Ferren, Applied Minds/Wired 1-2001

http://www.wired.com/wired/archive/9.01/forum.html?pg=3&topic=&topic_set=

http://www.wired.com/wired/archive/9.01/forum.html?pg=3&topic=&topic_set=

“In Europe, you have to have inspirational vehicles, that people are proud to own and

lust to drive.”Nick Scheele, Chmn., Ford Europe

DESIGN transforms the perception of what’s possible. E.g.: Plate-glass

windows. Apple II.

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

P.S.

Web = PURE DESIGN MEDIUM

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

Design Transforms even the [Biggest] Corporations!

TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”

(Advertising Age)

Design “is” … WHAT & WHY I LOVE.

LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design =

“There are three basic principles behind any well-

designed product: truth, humanity, and

simplicity.”Sohrab Vossoughi,

Ziba Design

Design =

SIMPLICITY … HONESTY … ACCESSIBILITY …

ENJOYMENTJonathan Ive (iMac)

Design “is” … WHY I

GET MAD. MAD.

Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK

PHONE. Major Reward!

“I’m just going to come right out and say it: Ericsson lost $2.3B on mobile phone

handsets last year because its products are ugly.”

Peter Martin (FT 04.24.01)

Design is never neutral.

Hypothesis: DESIGN is the principal difference

between love and hate!

THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what

I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has

become a professional obsession. I – SIMPLY – BELIEVE THAT DESIGN PER SE IS

THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A

PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of

whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” …

that damn few companies put – consistently – on the front burner.

Message:“Services” are Not Intangible!

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

YOU ARE A DESIGNER!

First Steps: “Beauty Contest”!

• Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form

• Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on three dimensions: Beauty, Grace, Clarity

• Re-invent!• Repeat, with a new selection, every 15

working days.

“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under

fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

Great design = One-page

business plan (Jim Horan)

Life 101: Contracts

What are the 5 (not, 4, not 6) Main Points?

Please summarize on ONE page. (ENGLISH, PLEASE.)

(Let the bloody lawyers and agents do their masturbatory acts on the “last 98%.”)

Understand that if it’s “good,” we’ll all be healthy & wealthy & wise; if it’s bad,

somebody’s lawyer will figure a Way Out … fast. (McK: If you ever have a Problem, we’re gone tomorrow a.m.)

Design Rules! [Literally]

Palm Beach County’s U.C.B.* [*Utterly Confusing Ballot]

Message: Design is the wellspring of

branding. Great design takes guts and is “soul

deep.”

Compare 10 order forms or data fields at a Web site.

Save great and awful junk mail.

Go on a <$10 shopping spree.

Pay attention to signage. (And instruction manuals.)

Start a notebook. NOW.

Design-Minded Company: CredoDesign matters! Everywhere!

The Brand Promise rules! Everywhere!All can answer: WHO ARE WE? HOW ARE

WE DISTINCT?Words such as beauty & grace & emotion

& connection & Wow & adventure are okay ’twixt 9 and 5.

Non-Wow doesn’t cut it. Anywhere!We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis

on the arts, is part of this. Diversity-R-Us!

Design-Minded Company: Operating Philosophy

All work is the product of Hot Teams of peers.Hierarchy is minimal, and usually a distraction.

We understand that “disrespect” is the ultimate in respect in crazy times.The Work Matters! Wow … or bust!

All work reflects design-mindfulness & the brand promise.

Promotion comes immediately if the work is Wow.NO BULLSHIT. We keep our word to our teammates and other partners.

Integrity = No.1 outcropping of design-mindfulness.We are a business. Results matter!

“The good 10 percent of American product design comes

out of big-idea companies that don’t believe in talking to the

customer. They're run by passionate maniacs who make everybody’s life miserable until

they get what they want.”

Bran Ferren, Applied Minds/Wired 1-2001

“The real secret of the fashion business is that it is prepared to put

up with difficult, temperamental, quirky people in the name of style –

and ruthlessly dump them if they lose their ability to please a

fickle public.”

Peter Martin (FT 04.24.01)

Message: All the “cool stuff” looks [exactly]

like all the other “cool stuff” in this , THE

BRIGHT NEW AGE OF DESIGN.

“Our innate idiosyncrasies are actually more endearing to

others than our most glorious achievements.” – Veronique Vienne, The

Art of Imperfection. “Glorious imperfections” – Sam Phillips, Sun

Records, on identifying & presenting raw talent

The Art of Imperfection/Veronique Vienne

The art of making mistakesThe art of being shy

The art of looking like yourselfThe art of having nothing to wear

The art of not being rightThe art of being disorganized

The art of having taste-not good tasteThe art of not knowing what to do

The art of being sillyThe art of being neither rich nor famous

“The best beauty product is to have a life. A real life. With

challenges, disappointments, stress and laughter. The much-touted inner beauty is a natural

radiance that comes as a result of mental and emotional

involvement.”

Veronique Vienne, The Art of Imperfection

“When I am bored I am a thousand

years old.” “Women should have pleasurable

flaws.”Coco Chanel, via Veronique Vienne,

in The Art of Imperfection

“Against Smoothness”

(Harper’s Magazine 07.2000)

“The most beautiful thing we can experience is the mysterious. It is

the source of all true art and science. He to whom this emotion is a stranger, who can no longer wonder and stand in awe, is as

good as dead.”

Einstein

The Surrealists: “True beauty is embodied in irrationality and

coincidence.”The Tate Modern

Mark Rothko

Design for Delight

book title, Tate Modern

Message: Men cannot design for women’s needs.

Period.

Pursue radical

simplicity!

The Complexity Conundrum

Complex problems call for complex systems. (True.)

Complexifiers take refuge behind complex systems. (Complexifiers complexify complex systems.)

Those who make the history books are simplifiers. (E.g., Gordon Bell: 500 v. 50.)

If you can’t explain it in one page, it ain’t worth explaining.

Brand Outside

Strategy 3B:

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

http://www.fastcompany.com/online/30/thomas.html

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

Plot

Williams Sonoma = 5 [was 10]Crate & Barrel = 8

Sharper Image = 9+Smith & Hawken = 8+

Garnet Hill = 9L.L. Bean = 4 [was 9+]

Colonial Williamsburg = ?

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

LAN Installation Co.

to

Geek Squad (2% to 30%/Minn.)

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 Theatre & Every Business a Stage

Client: “We’re not like Nike! We sell paper clips , 9mm bolts, who can be bothered?”

JK: “The whole world can be bothered if you brand

them well. Nike does not actually sell shoes. Nike sells the experience of using Nikes, the feeling of being a winner. And they

condense the message into just three words:

Just Do It! It is a question of being the only one, of offering the market

something unique.”

Source: Jesper Kunde, A Unique Moment


Message: “Experience” is the

“Last 80%”“Experience” applies to

all work!

Extraction & Goods: Male dominance

Services & Experiences: Female

dominance

First Step (?!): Hire a theater director, as

a consultant or FTE!

HP Revisited

PWC Consultants lead Business Re-invention Process (“Experience

Economy”)

Fabulous Customer Service (“Service Economy”)

Terrific Servers (“Goods Economy”)

“Experience”: Home to [tomorrow’s]

Market Cap!

THIS IS A BIG

DEAL!







Brand Outside

Strategy 3B.1:

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.”)


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


The access to technology is

excellent. (I’ve trained them in this!)


The bottle of Chalone chardonnay they leave

for me. (They “remember.”)


The fact that the GM always puts his desk

chair in my room when I’m in town.


The fact that I feel okay arriving in shorts and a baseball cap. (Even

though they serve princes & sheiks.)


The clientele.


No hairs in the bathtub. (Operational

excellence.)


Responsiveness. (Operational

excellence.)


The Brand. (I trust Izzy.)


Trust.


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

“The idea that business is just a numbers affair has always struck me as preposterous.

For one thing, I’ve never been particularly good at numbers, but I think I’ve done a

reasonable job with feelings. And I’m convinced that it is feelings – and

feelings alone – that account for the success of the Virgin brand in all of

its myriad forms.”Richard Branson

“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

“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

“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

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

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

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

“Most executives have no idea how to add value to a market in the metaphysical

world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to

choose between.”

Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]

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

http://www.tomsofmaine.com/

“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

“A great company is defined by the

fact that it is not compared

to its peers.”Phil Purcell, Morgan Stanley

“We’re not going to be driven by where we think a funding

agency would like to see us go. We’re going to build our case …

and then find an organization that agrees with us.”

Stephen Spongberg, Polly Hill Arboretum

Jesper Kunde’s Challenge: All business processes

should be aligned with the Brand/Value Promise.

Think … Brand Driven Systems!

Remember!

Talent = Brand*

* And don’t forget Hal R.

Remember: What’s your company’s

EVP?Employee Value Proposition, per Ed

Michaels et al., The War for Talent

Edgartown MA: A&P Fun in the Sun Store

“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25

words.) (2) List three ways in which we are UNIQUE … to our Clients.

(3) Who are THEY (competitors)? (ID, 25 words.)

(4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:

Try ’em on a skeptical Client!

Exercise : Write copy for a bookmark!

(Etc.)

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

http://www.eurekaranch.com/

Message: REAL Branding is personal. REAL Branding is integrity. REAL

Branding is consistency & freshness. REAL Branding is the answer to WHO

ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments,

all hands affair.

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)

[Tell the

TRUTHP-l-e-a-s-e ]

“WHO ARE WE?”

WHAT’S OUR

STORY?

“It’s a question of how to marshal our resources. I’d

like us to be really great in four or five areas. We have to make some hard choices.

“The big challenge is, we’ve got to get a story about science that’s

completely understandable. To get money in wholesale amounts, you’ve got to sell

concepts.”

Larry Small, Smithsonian Institution

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

“ WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DIFFERENCE TO THE CLIENT ”

“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

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

Brand Outside

Reprise: Wimps & Weenies Need Not

Apply!

Re-invention via ecommerce: Why Tough

Total commitment to total enterprise [and supply

chain] reinvention!

Self-Determination: Why Tough

Cede Control

Women’s [Aging,Green] Market: Why Tough

EncompassingAttitude

CULTURAL!

Design: Why Tough

True-believer-dom-shipEncompassing/Cultural

Experience: Why Tough

Total Reorientation

Going Global: Why Tough

’tude!Patience

Brand Power: Why Tough

Way of LifeForever!

Passion Rules!Touches Everything!It Am Me [Personal!]

Message :

Not for the Faint of Heart!

Our Journey

Structure





Forces @ Work I

The Destruction Imperative!

Brand Inside

Brand Org: Lean, Linked,

Internet-driven, Virtual

Brand Inside

Brand Work: The Professional Service

Firm Model & The WOW Project

Brand Inside

Brand You: Distinct …

or Extinct

Brand Inside

Brand Talent: The Great War for Talent

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

Brand InsideReprise:

THINK WEIRD: The High Standard

Deviation Enterprise



Forces @ Work II

The Sameness Trap

Brand Outside

Strategy 1:Use E-Commerce to

Re-invent Everything!

Brand Outside

Strategy 1A:Healthcare et al.:

Embracing ane-Led Age of

Self-Determination

Brand Outside

Strategy 2A:

Women Rule!

Brand Outside

Strategy 2B:

Welcome to “Old World”!

Brand Outside

Strategy 2C:

Welcome to “Green World”!

Brand Outside

Strategy 3A:

Design Matters!

Brand Outside

Strategy 3B:

It’s the Experience!

Brand Outside

Strategy 4:

BRAND POWER!





#49

I. Personal Stuff …

Indefatigable

“indefatigable” … “courage” … “love the thrill of the hunt” … “must not have just a desire to win, but a need to win” … “enjoy doing things they don’t know how to do” … “seek out discomfort zones in order to gain new experiences” … “willing to piss

people off” … “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON

ROLLER BLADES”

“A real superstar is mean in a particular way. He is Michael Jordan or

Cal Ripken, greedy for records and history. Armored and self-contained, his

inner core is a hard knot of physical talent and fierce will. Nothing penetrates that core, and anybody or anything that

gets too close is out of his life.”

Michael Sokolove, “The last Straw”

“I think I’m happy. It may not seem like I’m happy on my face, but I’m also greedy. And

I’m not done.”Shaq O’Neal, on why he didn’t go nuts when the

Lakers finished the best NBA post-season ever

You Must 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. That passion is infectious.” … “ ‘It’s only business,

not personal’ … IT ALWAYS IS PERSONAL.” … “If you love what you

do, it shows. You cannot fake love and succeed.”

Integrity

“ooze integrity” … “certain things I’ll never do” … “shoulder the

unpleasant tasks”

Miscl.

Know yourself … Aware of your impact on others … Have an

Honest Coach … Take breaks

II. Tactics …

“Sweat the small stuff” [cultural giveaways: the clean parking lot,

etc.] … “Build/Design” beats “Design/Build.” … Ferret out the truth/Find cool internal sources:

LEADERS NEVER HEAR THE TRUTH … “COMMUNICATE

RELENTLESSLY” … ASK BETTER QUESTIONS …

“Hire smart – go bonkers – have grace

– make mistakes – love technology –

start all over again.”

“Leadership is the PROCESS of

ENGAGING PEOPLE in CREATING a

LEGACY of EXCELLENCE.”

Leadership 2001Talent-obsessed (Great>>>Good)Opportunity Structure (Fast, Cool,

Accountable, Rewarding) Pursuit of a Cause (Brand-driven)

Content-driven (“PSF”/WOW! Projects)State-of-the-Art (Technology!)

Adventuresome Culture (Disrespect, Short Memory, Sense of Humor)Culture of Hyper-urgency

Enthusiast-in-Chief

TP’s BIG BEEF: (Many) CEOs are NOT (Really) Serious (Obsessed) about:

Internet’s encompassing potentialTalent development

Branding/Design“Marketing” to: Women, the Ageing,

African-Americans, HispanicsCreating an HSDE (e.g., Mkt. Share vs. Mkt. Creation; encouraging a Culture of Disrespect)

“I don’t know.”

Karl Weick

“The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame

where the old tools of logic may be its undoing rather than its salvation. To drop these tools is

not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the

unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the

form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in

the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick


Instead they (1) provide a context which is

marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow

people to fully (and safely?) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive

self-constructed network) to (5) go-create places they (and their teachers-leaders) had never dreamed existed/

they could go.

Weick I

Uncertainty will be based less on insufficient facts and more on insufficient questions.

There will be fewer experts and more novices.

There will be more of a premium on staying in motion than on detaching and reflecting.

There will be more migration of decisions to those with the expertise to handle them, and

less convergence of decisions on people entitled by rank to make them.

Weick II

There will be fewer attempts to capture the big picture and more attempts to capture the big

story, with its ongoing, dynamic plot.

There will be more focus on updating and plausibility and less on forecasting and

accuracy.

There will be more improvisation and fewer routines.

There will be more humility and less hubris.

Source: The Future of Leadership, Warren Bennis et al.

BossMessage2001: YOU CAN’T KEEP UP!

YOU DON’T HAVE THE ANSWERS!

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

Priority #1

“To Don’t ” List

“One of the hardest things you have to do in running a company is not lie to yourself. Let’s

say I start 10 new ideas. Two are clear winners, two are clear losers. I’ve got six things in between. I always kill the clear losers. The

problem is we let the six in the gray zone live because we rationalize that they’re not failures. ‘Ah, it’s going to work.’ ‘Ah, it’s coming along.’

‘Ah, just a little more.’ The reality is we should think of everything except clear

winners as losers.”

Bob Pittman, AOL Time Warner

Brand Leadership

Passion Rules!

Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,

Engagement, Commitment, Great Causes & Determination to Make a

Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable

Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

“You must be the change you wish to see in the world.”

Gandhi

“It is necessary for the President to be the

nation’s No. 1 actor.”FDR

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“Stories of identity – narratives that help individuals think about

and feel who they are, where they come from, and where they

are headed – constitute the single most powerful weapon

in the leader’s arsenal.”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)

“As Ministers of The Republic of Tea, our

not-so-covert mission is to carry out a Tea

Revolution.”Ron Rubin & Stuart Avery Gold,

success@life

“Our free and open immigration policies welcome all who wish to flee the tyranny of

coffee crazed lives and escape the frazzled fast paced race-to-stay-in-one-place existence that it fuels. In our tiny land, we have come to learn

that coffee is about speeding up and losing sight, while tea is about slowing down and

taking a look. Because tea is not just a beverage, it is a consciousness altering

substance that allows for a way of getting in touch with and taking pleasure from the beauty

and the wonder that life has to offer.”

Ron Rubin & Stuart Avery Gold, success@life

Ben Zander: “I am a dispenser of

enthusiasm.”


“Entusiasmatore”

Word invented by Silvio Berlusconi, meaning enthusiast-salesman

“A leader is a dealer in hope.”

Napoleon

“[Ronald Reagan] radiated an almost

transcendent happiness.”

Lou Cannon, George (08.2000)


and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the

stick. But in every instance, good teachers share one trait: a strong sense of personal

identity infuses their work. ‘Dr. A is really there when he teaches.’ Mr. B has such enthusiasm for his subject.’ ‘You can tell that this is really

Prof. C’s life.’ ”


“I’d rather regret the things I have

done than the things I have not.”

Lucille Ball

“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

“Let’s make a dent in the universe.”

Steve Jobs

Have you changed

civilization today?Source: HP banner ad

Documents

Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001