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YELLOW
Tom PetersLas Vegas
13 January 2000
Seminar Y2K
Brand Everything:Distinct or Extinct
Microsoft = R.O.W.
Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99
Microsoft = R.O.W. (II)
Microsoft > GM + Ford + Boeing + Lockheed
Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg +
McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats
Source: Yastrow Marketing (through 11-23-99)
No Wiggle Room!
“Incrementalism is innovation’s worst
enemy.” Nicholas Negroponte
Just Say No …
“I don’t intend to be known as the ‘King of the
Tinkerers.’ ”CEO, large financial services company (New
York, 5-99)
Forces at Work
The Destruction Imperative!
“It is generally much easier to kill an organization than change it substantially.”
— Kevin Kelly,
Out of Control
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”
— Peter Job, CEO, Reuters
“It used to be that the big
ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional
Venture Partners)
Forget > Learn
“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”
Dee Hock
Brand Inside
PSF 1:Brand Org!
108 X 5*vs.
8 X 1
* 540 vs. 8
ERP, ECM, Web, Etc.
IT’S THE GIANT SUCKING SOUND
OF SLACK BEING EXTRACTED FROM
THE GLOBAL ECONOMY!
“The coefficient of friction associated with the grunge
of business is amazing!”
Michael Schrage
CCC Information Services!
Cemex and FDX!
FDX and Cisco!
“UPS used to be a trucking company with technology.
Now it’s a technology company with trucks.”
Forbes (1-00), on UPS’s $11B spent on IS in the 90s; UPS was Forbes’ “Company of the
Year”
“We want to be the air traffic controllers
of electrons.”Bob Nardelli,
GE Power Systems
PSF 1.0
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
“support function” / “cost center” / “bureaucratic
drag”
or …
“Rock Stars of the ‘Age of Talent’ ”
C.I.O. to
C.E.F.R.N.S.*
*Chief Evangelist For Really Neat Stuff
Brand Inside
PSF 2:Brand Work!
“Reward excellent failures. Punish mediocre successes.”
— Phil Daniels,
exec, Sydney
But Does It Matter????
“On time, on budget … who cares?”
anon. seminar participant (4/99)
“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”
CEO, F100 financial services company (10-98)
Kaiser: 4.15.29
Liberty Ship
2 years
240 days
9 hours
4 days, 15 hours, 29 minutes
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
Characteristics of the “Also Rans”
– “minimize risk”– “respect the chain of command”– “support the boss”– “make budget”
Source: Fortune on “most admired global corporations” (10/26/98)
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
Brand Inside
PSF 3:Brand You!
DISTINCT … OR EXTINCT!
“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”
Michael Goldhaber, Wired
“If one quarter can’t make the journey, that’s the way it
has to be.”
Carly Fiorina (1-00/Forbes)
Personal “Brand Equity”
– I am known for …– My current Project is challenging me …– New things I’ve learned in the last 90 days include …– My public “recognition program”
consists of …– Additions to my Rolodex include …
– My resume is different from last year’s at this time …
R.D.A.
Rate: 15%?, 25%?Formal “Investment Strategy”/
R.I.P./Bold (WOW!)/MEASURE!!
Bill Parcells’ World/ Brand You World!
BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
NY Post (9/99)
Brand Inside
PSF 4:Brand Talent!
Issue Y2K
The Great War for Talent!
“Develop people quickly and effectively” … 5%
“Truly know who our strongest and weakest performers are” … 17%
Source: War for Talent research/ McKinsey & Co.
Talent War Y2K!
–All out!/ Time consuming!–Never ending!/ Unwinnable!–Includes everybody!/ Everybody’s
game! (“We’re all in sales.”)–Expensive!–Cool!/ WOW!/ Fun!/ Creative!–Strategic!/ Core competence!
TP’s Ideal Job:
Head of Housekeeping!
Talent = Brand
Brand Outside=
Brand Inside
Brand Outside
Context:
No “Commodities”!
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
What’s Special?
“Customers will try ‘low cost providers’ because the Majors have not given them any clear
reason not to.”
Leading Insurance Industry
Analyst (10-98)
“We make over three new product announcements a
day. Can you remember them? Our customers
can’t!”
Carly Fiorina
The “10X/10X” Phenomenon
10 Times Better/
10 Times Less Different
“When we did it ‘right’ it was still pretty
ordinary.”
Barry Gibbons on “Nightmare No. 1”
“The ‘surplus society’ has a surplus of similar companies, employing similar
people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with
similar prices, warranties and quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Pretzel Crumb-less-ness Plus …
“The Ritz Carlton Experience enlivens the senses, instills
well-being and fulfills even the unexpressed wishes and needs of
the guest.”
from the Ritz Carlton Credo
Granite Rock’s BHAG!
Nirvana!
- Nordstrom- Four Seasons- Amazon.com
- Adirondack Guide Boat- OXO Good Grips
- Ziplocs
Why?
Reliable!Cool!/ Surprising!
Friendly!/ Comfortable!Aesthetically pleasing!
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 1:
Lead the Customer!
“The customer is a rear view mirror, not a guide to the future.”George Colony, Forrester Research
“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President, Bentley College
“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
“customer satisfaction” to “customer success” / “see
through accountability”[e.g.: commissioning of
plant, not delivery of equipment]
Source: GE Power Systems
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
Brand Outside
Strategy 2:Master
E-Commerce!
$30,000,000. = ???
Dell’s Web sales … daily (9-99)
Tomorrow Today: Cisco!
$7B of $10BSave $500M (service and tech
support)
C.Sat E >> C.Sat HCustomer Engineer Chat
Rooms ($1B?)
World’s Largest Extranet!
ANX/ Automotive Network Exchange/ “Data tone for the
auto industry”
Source: Philip Evans and Thomas Wurster, Blown to Bits
Welcome to
D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as
a business go down and
perceived service goes up because customers are conducting it
themselves.” Ray Lane, Oracle
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of the Customer”/ “The Customer Is in Control”
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.” Jack Welch
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.**Reinvent our marketspace!
“In the network economy, the Website becomes the company’s primary interface to the customer.
The user interface becomes the marketing materials, store front,
store interior, sales staff and post-sales support all rolled into one.”
Jakob Nielsen, Designing Web Usability
Web Strategy: GE Power Systems
“Launch and Learn”/4 sites in 30 days/
Hire the best: Silicon Valley location
Brand Outside
Strategy 3:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 75%Etc.
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
Most Under-reported story!
9M*/20M+/$4T [> Germany]
* 400K in ’72; 132% since ’92;source: NFWBO, Cognetics
OPPORTUNITY
NO. 1!*
[* No shit!]
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.”
Not a Morality Play!
“It is critical that we all understand that IBM is not marketing to women
entrepreneurs because it is the thing to do, or even the right thing to do. We are
marketing to women entrepreneurs because it is a huge opportunity.”
Cherie Piebes
Enterprise Reinvention!
RecruitingHiring/Rewarding/ Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
Brand Outside
Strategy 4:
Design Rules!
And Tomorrow …
“Fifteen years ago companies competed on price. Now It’s
quality. Tomorrow it’s design.”Robert Hayes
Message:Services are Not Intangible!
You “give off” hundreds of design cues … daily!
YOU ARE A DESIGNER!
Graceful language!
Susan Sargent Designs:
PLEASE COMPLAIN!Thanks for your order!
We dearly want everything to go p-e-r-f-e-c-t-l-y!
If the order was late. Or wrong.Or if any of the goods are damaged in the
slightest.Or if you’re just having a lousy day and
want to unload on someone …
Call our Customer Care Hotline!
Beauty Contest!
1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim
form.2. Rate it on a 1 to 10 scale
(1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity.
3. Repeat … every 15 days.
Brand Outside
Strategy 5:
It’s the Experience!
“Experiences are as distinct from services as
services are from goods.”Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater & 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
Safe, On Time and …
“We defined personality as a market niche. We seek to
amuse, to surprise, to entertain.”
Herb Kelleher, Main Man, LUV Airlines
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
ExperiencingOxymoron: Respect from an
Airline!
I can cope with delays. I cannot cope with lies … especially Sins
of Omission.
IT IS DISRESPECTFUL TO ME AS A HUMAN BEING!
Brand Outside
BRAND POWER!
Brand?
DistinctionExcellence
Emotional “Signature”Trustworthiness
ConsistencyShorthand
Brand It! Now, More Than Ever!
“The increasing difficulty in differentiating between products and
the speed with which competitors take up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant, Management [New Zealand]
No Room for Brands?
NikeSaturnCNN
America OnlineCharles Schwab
StarbucksThe Gap
IntelEtc.
Brand = Trust!
“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”
The Economist
“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication
highway in the company. When companies make the shift to selling solutions, brands and
attitudes, communicating the company’s attitudes and values becomes the decisive parameter for success. It demands that you
find out who you are as a company.”
Jesper Kunde, Corporate Religion
Calling the Corporate Shrink!
“Organizational Psychotherapy”/
WHO WE ARE!
“FedEx is a collection of marketers with trucks and
planes, while UPS is industrial engineers with a collection of
truck and planes.”
Brian Clancy/ Forbes (1-00)
Brand = Special = Passion =
Connection = Caring*
* (Way) beyond “market research”
Brand Leadership
Lead Out Loud!
Message Bran[d]son:
Live the Brand!
ENTHUSIASM RULES!*
“I am a dispenser of enthusiasm.”/ Ben
Zander
“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
“If things seem under control, you’re just not going fast enough!”
— Mario Andretti
JUST GET MY STUFF ON TIME
AND DON’T BUST IT!
