Post on 09-Jan-2016
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Tom Peters SeminarM3 Rollercoaster Days:
Learning to …Rock & Roll!
IMRA/Logistics2001Orlando 01.09.01
“There will be more confusion in the the
business world in the next decade than in any decade in history. And the
current pace of change will only accelerate.”
Steve Case
“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)
Zounds: Bradlees. Wards. Sears/89. Same-store Xmas
sales. Olds. Cherokee. CEOs @ P&G, Coca Cola, Gillette, Xerox, Lucent, Aetna, Mattel, Chrysler USA, Home Depot (sorta). AT&T
Breakup III. NASDAQ.
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
90% Doomed
White Collar Revolution!
New OrleansApril 2000:
NAPM
You are the … Rock Stars
of the B2B Age!
Brand Inside
Brand Talent: The Great War for Talent
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, Enron
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent (05.17.00)
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
Women in the ’00s:
Born to Lead!
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts on 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
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
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
Brand InsideReprise:
THINK WEIRD: The High Standard
Deviation Enterprise
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” Pioneer Assignments/Pioneer Projects/Pioneer Partners
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. Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/Passionate Piracy
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
“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
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“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 Businessrosecr
Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin:65%; Net margin: 28%
Annual savings in service and support from customer
self-management: $550M
Enron eWorld: 30 times a day (“price a structured trade”/early 1999, per John Arnold, 26); 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 daySource: www.ecompany.com (1-2/2001)
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)
SUMMARY: REINVENT
EVERYTHING
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.” Jack Welch
“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]
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“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. …“In a true ebusiness, customers can come to
your Website and evaluate products, be connected to the supply chain to get
commitment for delivery and pricing. It also includes all the tangential services like billing
and customer service, which should be automatic and simultaneous.”
Ray Lane, Kleiner Perkins
Brand Outside
Strategy 2:
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
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.
Design “is” … WHY I
GET MAD. MAD.
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.
Brand Outside
Strategy 2A:
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
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride
through small towns and have people be afraid of him.”Harley exec, quoted in Results-based
Leadership
“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
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 = ?
Brand Outside
Strategy 3:
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%
$4.8T > Japan
9M/27.5M/$3.6T > Germany
OPPORTUNITY
NO. 1!
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
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!”
Speaking of Enormous
[Missed] [Huge] Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44, stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is stupid, stupid!
2000-2010 Stats
18-44: -1%55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Brand Outside
Strategy 4:
BRAND POWER!
“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 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.]
“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
“WHO ARE YOU [these days] ?”
TP to Client/11-2000
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Message 2001
Mastering Madness!Best Talent Wins!
eBusEx = Reinvention!Women Rule!
Value Proposition: Who Are We?