Tom Peters Seminar2000 Distinct or …

ExtinctJacksonville24October2000

More at … tompeters.comSlides from this seminar.

Master Presentation, for in-depth.“Cool Friends” (referenced in seminar).

Discussions re this stuff.Calendar of events.

Etc.

When Mike Charles gets lonely, who does he talk to …

Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2%

milk. Tap keypad on door. Webvan.com delivers in hours. Next, he sends his

washer an email …Source: Business Week (09.00)

Um … Eduardo Kac and Alba, the glowing*

bunny rabbit!

*You can thank one selfless jellyfish and several French scientists!

Source: Rutland Herald (10.01.00)

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98

Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

NOW THAT’S B-I-G!

“The period 2000-2002 will bring the single greatest change in

worldwide economic and business conditions since we came down from the trees.”

David Schneider & Grady Means, MetaCapitalism

“The corporation as we know it, which is now 120 years old, is

not likely to survive the next 25 years. Legally and

financially, yes, but not structurally and economically.”

Peter Drucker, Business 2.0 (08.00)

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

John Roth’s “Rules” [Nortel]

1. Our strategies must be tied to leading-edge customers on the attack.

2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.

3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology

and products our customers need.4. Success is achieved by leading change,

not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.

Source: Abridged from The Wall Street Journal (07.25.00)

“It used to be that the big

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

Venture Partners)

Progressive

“We don’t sell insurance anymore.

We sell speed.” – Peter Lewis

Digital cameras, wireless Net links,

etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!

Source: Business Week (09.00)

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work I

The Destruction Imperative!

Forget>“Learn”

“The problem is never how to get new, innovative

thoughts into your mind,

but how to get the old ones out.”

Dee Hock

“When asked to name just one big merger that had lived up to expectations, Leon

Cooperman, former cochairman of Goldman Sachs’ Investment Policy

Committee, answered: I’m sure there are success stories

out there, but at this moment I draw a blank.”

Mark Sirower, The Synergy Trap

“Acquisitions are about buying market share.

Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.

We buy the engineers and the next generation product. …”

John Chambers, Cisco

Pentium III 800MHz: $42,893.00/#

Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

Lessons from the Bees!

Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in

nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no

megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into

smaller colonies which can grow value faster. What the bees are telling us is that the corporate

world has got it all wrong.”David Lascelles, Co-director of The Centre for the

Study of Financial Innovation [UK]

“Talent” and a $2T enterprise??????

“THE CHRYSLER THAT DAIMLER BOUGHT IS DEAD. The recent resignation of Thomas Gale, the great Chrysler designer, brings that

home as nothing else does. This was the mistake Jurgen Schremp made when he bought Chrysler: He didn’t realize it was the people who counted,

not the factories, which were old, or the sales and profits, which can come and go. The people and

the leadership are the heart and spirit of the Detroit automaker and when they go, all that is

left are old factories and problems.”

Forbes [10.30.00]

The [New] Ge Way

DYB.com

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Paradox Redux

Atlanta: +113,600 = #1 metro area

Layoffs [major]: BellSouth, Lockheed, Coca-Cola

New Generation Dominates: Changes in Shareholder Value, 1995-1999

Dell, +$129B; Compaq, -$17B

Wal*Mart, +$145B; K-Mart, -$16B

Top 11% (of largest 1,000 firms), +$4.9T; other 89%, -$3.7T

+ GE- Lucent

- ATT- Xerox

- Qualcomm

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

Headline: “Bank of America to Cut … 10,000 Jobs”

“Middle-level and senior managers are expected to be

the principal targets of the job cutbacks.”

Source: The New York Times (07.29.2000)

White Collar Revolution!

108 X 5vs.

8 X 1*

* 540 vs. 8 (-98.5%)

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

“A bureaucrat is an expensive

microchip.”Dan Sullivan, consultant and

executive coach

Automation+

75% of what we do: 40 “expert” decision rules!

“Assetless Company”

John Bryan, CEO, on selling all Sara Lee’s manufacturing

“Don’t own nothin’ if you can help it. If you can, rent your shoes.”

F.G.

“We have transitioned from an asset-based strategy

to a talent-based strategy.”

Jeff Skilling, COO, Enron

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

RR on “Assetless” [J.B.] Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

Advance Paradigm

Data on 165,000,000 prescriptions per year; docs and insurers have access to

records

Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save

$14,000 per year in review time

Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)

“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to

install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which

neighborhoods you go. The premium you pay reflects your actual driving risk.”

Stan Davis & Christopher Meyer, futureWEALTH

Brand Inside

Brand Work: The Professional Service

Firm Model & The WOW Project

So what will be the Basic Building

Block of the New Org?

Answer: PSF![Professional Service Firm]

Department Head

to …

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

New OrleansApril 2000:

NAPM

You are the … Rock Stars

of the B2B Age!

ChicagoNovember 1999:

HRMAC

“support function” / “cost center” / “bureaucratic

drag”

or …

Are you “Rock Stars of the

Age of Talent”

Every job done in W.C.W. is also done

“outside” … for profit!

Credo

“WORK WORTH

PAYING FOR”

“P.S.F.”: Summary

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

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

Point of View (Methodology)W.W.P.F. (100%)

When: Now!

The Raw Material …

The WOW Project!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

But Does It Matter ????

“On time, on budget … who cares?”

anon. seminar participant (4/99)

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

T.T.D.sThe next slide is the first of many

“T.T.D.” activities. I.e.: Things To Do, shorthand forms of training

exercises I use. Also: Many of these T.T.D. slides, as

well as most of the “Stuff That Matters” section, have accompanying Notes. (Use Normal View to access.)

Tom Peters

T.T.D.: Now!– List all projects– Carefully describe a “WOW Outcome” for you

and the Client– Score (!) all projects on WOW, Beauty, Impact,

Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that

emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points

“Every man’s work is a portrait

of himself.”

Samuel Butler

Brand Inside

Brand You: Distinct …

or Extinct

2010 “Demographics”:

By 2010, full-time workers will be in the

minoritySource: MIT study (28August2000)

New World of Work

< 1 in 10 F500#1: Manpower Inc.

Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27MTotal: 31M-55M

Source: Daniel Pink, Free Agent Nation

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2000

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

Finishing SkillsEntrepreneurial Instinct

CEO/Leader/BusinesspersonMistress of Improv

Sense of HumorIntense Appetite for Technology

Groveling Before the YoungEmbracing “Marketing”

Passion for Renewal

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

Stan Davis & Christopher Meyer, futureWEALTH

“Knowledge becomes obsolete incredibly fast. The continuing

professional education of adults is the No. 1 industry

in the next 30 years … mostly on line.”

Peter Drucker,Business 2.0 (22August2000)

“The Main crisis in school today is

irrelevance.”

Daniel Pink, Free Agent Nation

“Our education system is a second-rate, factory-style organization, pumping out

obsolete information in obsolete ways. [Schools] are simply not

connected to the future of the kids they’re responsible for.”

Alvin Toffler, Business 2.0 (09.00)

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

“The time seems appropriate to rethink the

notions of self and identity in this rapidly

changing age …”

Tara Lemmey, Project LENS, past president Electronic Frontier Foundation

America[ns] The … Beautiful Re-inventors

Ben F.Ralph W.E.

Dale C.N.V.P.

Werner E./EST“Tony R.”/“Coals Dude”

Stephen

Invent. Reinvent. Repeat.

Source: HP banner ad

T.T.D./Assignment

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

Brand You … for the Yellow Pages

Brand Inside

Brand Talent: The Great War for Talent

The Case

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“Seller’s Market”: Tomorrow’s Headline*

“Molecular biologists are up 3 points, economists

down 1/4, in moderate trading”

*futureWEALTH, Stan Davis and

Christopher Meyer

“The ‘War for Talent’ is over … and ‘Talent’ has

won!”Ed Michaels, The War for Talent

The Talent Ten

1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

From “1, 2 or 3” [JW] to … “Best talent in each

industry segment to build best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

2. Greatness

Only The Best!

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH

INITIATIVEE.g.: COO of IKEA to head

international expansion

Ed Michaels, War for Talent (05.17.00)

3. Performance

Up or out!

“We believe companies can increase their market cap 50 percent in 3 years. Steve

Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put

more talented, higher paid managers in charge. He increased

profitability from $25 million to $80 million in 2 years.”

Ed Michaels, War for Talent (05.17.00)

4. Pay

Fork Over!

“Top performing companies are two to four times more likely

than the rest to pay what it takes to prevent losing

top performers.”

Ed Michaels, War for Talent (05.17.00)

So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,

$3-4M per year. Pay: $135,000 plus $90,000. Net:

$2-3M for $50K.

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

5. Youth

Grovel Before the Young!

“Davids vs. Corporate Goliaths: Could the

Record and Film Industries Be Brought Down by Teenagers?”Headline: The New York Times (08.06.00)

“The Rise of the Teen Guru”

“They’re brilliant, ambitious, and almost intuitively gifted at technology. A new generation

of whiz kids are gaining unprecedented power and

authority.”Source: Cover story, Brill’s Content, 7-8/00

“Talented people are less likely to wait their turn. We used to

view young people as trainees; now they are authorities. Arguably

this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”

Ed Michaels, War for Talent (05.17.00)

6. Diversity

Mess Rules!

“Where do good new ideas come from? That’s simple! From

differences. Creativity comes from unlikely juxtapositions.

The best way to maximize differences is to mix ages, cultures and

disciplines.”

Nicholas Negroponte

“Diversity defines the health and wealth of nations in a new century.

Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the

blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting

the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity,

nourishes the human spirit, spurs economic growth

and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

7. Women

Born to Lead!

Women and new-economy

management …

“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-

first-century economic community are going to need the natural

talents of women.Helen Fisher, The First Sex: The Natural Talents of

Women and How They are Changing the World

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it

easier to meet new people? Who asks more questions in a conversation? Who is a better

listener? Who has more interest in communication skills? Who is more inclined to get involved?

Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &

Susan Kane-Benson

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

It’s Girls, Stupid!

1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in

high-level math and science courses

More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in

higher numbers

Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)

Source: The Atlantic Monthly (May2000)

Message: “Tomorrow belongs to women.”

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

Changing the World

8. Weird

The Cracked Ones Let in the Light!

[“We are in a

brawl with no rules.”

Paul Allaire]

The Cracked Ones Let in the Light

“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found

among non-conformists, dissenters and rebels.”

David Ogilvy

Axiom: Never hire anyone without an aberration in their

background!

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Human Enablement Department

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

Gen-X Demands

Love a new challenge. Want responsibility early. Crave freedom, independence and control. Are obsessed with

building their Human Capital. Value more than work. See a very

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

10. Leading Genius

We are all unique!

44 Players = 44 Projects = 44 different success

measures = 44 different styles (of you)

One size NEVER fits all. One size fits one. Period.

Employee retention & satisfaction:

Overwhelmingly, based on their immediate manager!

Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s

Greatest Managers Do Differently

Insights from 80,000 managers:

“People don’t change much.“Don’t waste time trying to put in

what was left out.“Try to draw out what was left in.

“That is hard enough.”

Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s

Greatest Managers Do Differently

Mantra2000

Talent = Brand

The Top 5 “Revelations”

Better talent wins.

Talent management is my job as leader.

Talented leaders are looking for the moon and stars.

Over-deliver on people’s dreams – they are volunteers.

Pump talent in at all levels, from all conceivable sources, all the time.

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

What’s your company’s …

EVP?

Employee Value Proposition, per Ed Michaels et al., The War for Talent

EVP = Challenge, professional growth, respect, satisfaction,

opportunity, reward [EVP = “The company’s

fingerprint”]

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

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

“This is all I ‘know’ in the

world!”Tom Peters

I. THE IDEA

“4Fs”: Find a

Fellow Freak

Faraway

Heart of the Matter

F2F!*

*Freak to Freak … or K2K [Kook to Kook]

World’s Biggest Waste …

Selling “Up”

Axiom: Never waste compelling evidence on people who don’t

agree with you, especially bosses. The principal purpose of such evidence is to inflame people who already agree with you – to the point that they will

take hard action.

II. THE NUGGET

Do Something. Do Anything.

Get Going.Now.

Opportunity ALWAYS Knocks

VFCJ* “Strategy”

*Volunteer For Crappy Jobs

Is It …

“The Oh-Shit-I-Wish-It-Were-Over Memorial Day picnic”

or

“The First Annual Seriously

Kewl Celebration of Our Incredible Staff”

Is It …

Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?

Or …

A stealth opportunity to address the War for Talent via … a thoroughgoing review

of how safety and environmental issues contribute to making this a

Great Place to Work?

Is It …

Fix these bloody customer problems that have cropped up with the new 2783B?

Or …

A chance to work with a hotshot, young division GM on …

using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the

heart of the Product Design Process?

Reframers’ Rules:

Rule 1: Never accept an assignment as given! (Please.)

Rule 2: You’re never so powerful as when you are “powerless”!

Rule 3: Every “small” project contains the entire

enterprise DNA!

III. THE SOFT STUFF

Connect!

Message: It’s Community

Organizing, stupid!

See: Saul Alinsky’s Rules for Radicals

IV. BOTTOM LINE

The Enemy!

Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Reprise: Brand Inside

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

PSF as Building Block [Work Worth Paying For!]

Work Worth Paying For = WOW Projects!

Brand You [Everybody!]

The Great War for Talent!

Boss-free Implementation of STM! [F2F]

N.W.O.: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are

for fools.”)• I love “Yes men”• Self-contained

• Seat 9B, UA233• Address: Rick@Corp.com• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal

as breathing• I love Misfits!• I love partners

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Outside

The Death Knell for Ordinary:

Pursuing Difference!

Forces @ Work II

The Commodity Trap

Quality Not Enough!

“Quality as defined by few defects is becoming the

price of entry for automotive marketers

rather than a competitive advantage.”

J.D. Power

Quality Not Enough!

“While everything may be better, it is also increasingly the

same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, working in

similar jobs, coming up with similar

ideas, producing similar things, with

similar prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

Brand Outside

Strategy 1:

Lead the Customer!

“If you worship at the throne of the voice of the customer, you’ll get only

incremental advances.”Joseph Morone, President,

Bentley College

“These days, you can’t succeed as a company if you’re consumer led –

because in a world so full of so much constant change, consumers can’t

anticipate the next big thing.

Companies should be idea-led and consumer-

informed.”Doug Atkin, partner, Merkley Newman Harty

“Our strategies must be tied to leading edge

customers on the attack. If we focus on the defensive

customers, we will also become defensive.”

John Roth, CEO, Nortel

Lucent Stumbles!

Cause(s): (1) Listening to BIGGEST, SLUGGISH

customers. (2) Failing to exploit the Web internally or externally

Source: Business Week (08.07.00)

Nypro!

Brand Outside

Strategy 2:Use E-Commerce to

Re-invent Everything!

OVERVIEW

www.cyveillance.com

08.30.2000/1221AM:

2,461,940,629

www.cyveillance.com

10.24.2000/0416AM:

2,862,983,467

55 days, 3 hours, 55 minutes …

+401,042,838

Tomorrow Today: Cisco!

90% of $20B (=$50M/day)

75% mfg. outsourced; 50% of orders routed to supplier who ships direct

Gross margin: 65%; Net margin: 28%

Savings in service and support from customer self-management: $500M

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the

Web per se.

Schwab: $25B per week in asset transactions [80% of trades]

[Transition to e.Schwab: Rev. fell, then quickly doubled]

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

COMMUNITY SERVICES!/ CUSTOMER CONTROL!

Tomorrow Today: Cisco!

90% of $20B; save $550M

C.Sat e >> C.Sat H

Customer Engineer Chat Rooms/Collaborative

Design ($1B “free” consulting) (45,000 customer problems a week solved via

customer collaboration)

Cisco’s Secret

Trust (Openness to partners!!!!!)

Welcome to

D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as

a business go down and

perceived service goes up because customers are conducting it

themselves.” Ray Lane, Oracle

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my universe!

“The moral is that in an imperfect world of customer

service, most customers prefer to cut to the chase

and help themselves.”

Adrian Slywotzky & David Morrison, Mercer Consulting

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

“The Web enables total transparency. People with

access to relevant information are beginning to challenge any type of

authority. The stupid, loyal and humble customer, employee, patient

or citizen is dead.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

“In the network economy, the Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front,

store interior, sales staff and post-sales support all rolled into one.”

Jakob Nielsen, Designing Web Usability

“Most companies would do more business on the Internet if they

fired their entire marketing department and replaced it with

people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

SWA

Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t

believe they’re done)

30% of revenues directly from site (vs. 6% for others)

Source: Business Week (09.00)

RADICAL STRATEGIES

REQUIRED

“One cannot be tentative about this. Excuses like ‘channel

conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you

never heard of 24 months ago.”

Jack Welch [07.00/Forbes.com]

ACT NOW, ACT FAST,

KEEP ACTING

“It’s better to be first with less than last with more. Success on

the Web isn’t just about time to market, it’s also about

‘time to learning.’ ”

Jeff Levy, eHatchery

SUMMARY: REINVENT

EVERYTHING

WebWorld = Everything

Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry

Web/B2B as ultimate wake-up call to “commodity producers”

Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data

Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)

Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything

as next door neighbor

Message: eCommerce is not a technology play! It is a

relationship, partnership, organizational and

communications play, made possible by new

technologies.

Message: There is no such thing as an effective B2B or

Internet-supply chain strategy in a low-trust,

bottlenecked-communication, six-layer

organization.

A DREAMER’S MEDIUM!

“There is no use trying,” said Alice. “One can’t believe impossible things.”

“I daresay you haven’t had much practice,” said the Queen. “When I was

your age, I always did it for half an hour a day. Why, sometimes I’ve

believed as many as six impossible things before breakfast.”

Lewis Carroll

I’net …

… allows you to dream dreams you could never have imagined before!

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Wells Fargo

Brand Outside

Strategy 3: Fighting Back via

Systems Integration!

THE CASE

B2B

1999 – 2004: 50X

2004: $7.4TSource: GartnerGroup (per Reuters 1-26-00)

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

Solectron, IBM, Nortel, Matsushita, Seagate, Etc.

E2Open.com

$700B

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

“Net Nips Real Estate Sales Fees”

Headline, p.1B, USAToday 07.05.00*

*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

Message: “BOX” SELLERS LOSE!

Squeeze City: Joel Anderson. Anderson News Corp. North Court Street. [Next to Biscuit Village.]

Florence, Alabama. 4 of 10 mags. Wal*Mart et al.: 44%.

[2.6:1 “burn rate.”] Bow down [low!], Time Inc.

THE RESPONSE

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

09.11.2000: HP bids $18,000,000,000

for PricewaterhouseCoopers

Consulting bus! (31,000 bods)

“These days, building the best server isn’t enough. That’s the

price of entry.”

Ann Livermore, Hewlett Packard

Defense-Offense: Systems Integration/HVA

Delphi, DanaUnited Technologies, Corning, GE, Sun, HP,

Carpet One, Bud …[Anybody in their right mind!]

E.g. …

UTC/Otis + Carrier: boxes to “integrated building systems”

Brand Outside

Strategy 4:

Design Matters!

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul

of a man-made creation.”Steve Jobs

Message: “Great - Cool Stuff” Matters.

Great & Cool Trumps Not-So-Great &

Ho Hum!

Message iMac:

“Great Stuff” Takes Guts!!

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

The I.D. [International Design] Forty*

Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …

Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …

Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.

* List No. 1, 1999

Lady Sensor, Mach3, and …

$70M on developing the OralB CrossAction toothbrush

23 patents, including 6 for the packaging

Source: www.ecompany.com [06.00]

TARGET … “the champion of America’s new design

democracy” (Time)

Design “is” … WHAT &

WHY I LOVE. LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I

GET MAD. MAD.

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

PHONE. Major Reward!

Design is never neutral.

Hypothesis: DESIGN is the principal difference

between love and hate!

T.T.D./Design “Awareness”!

STEP No. 1: NOTEBOOK![Start recording the awesome

and the awful.]

Brand Outside

Strategy 5:

It’s the Experience!

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride

through small towns and have people be afraid of him.”Harley exec, quoted in Results-based

Leadership

“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

PlotWilliams Sonoma = 6 [was 10]

Crate & Barrel = 8Sharper Image = 9+

Smith & Hawken = 8+Vermont Country Store = 8+

Garnet Hill = 9L.L. Bean = 5 [was 9+]

Land’s End = 7+Colonial Williamsburg = ?

The “Experience Ladder”

Extraction/Raw MaterialsGoods

ServicesExperiences

To 1940: Cake from flour, sugar (extraction economy): $1.00

1955: Cake from Cake mix (goods economy): $2.00

1970: Bakery-made cake (service economy): $10.00

1985+: Party @ Chuck E. Cheese (experience economy) $100.00

LAN Installation Co.

to

Geek Squad (2% to 30%/Minn.)

Extraction & Goods: Male dominance

Services & Experiences: Female

dominance

Brand Outside

Strategy 6:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 80%Consumer Electronics … 51%

Cars … 50%+/80%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

$4.8T > Japan

9M/27.5M/$3.6T > Germany

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874?

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*

[* No shit!]

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

“Men seem like loose cannons. Men always move faster through a store’s

aisles. Men spend less time looking. They usually don’t like asking where things are.

You’ll see a man move impatiently through a store to the section he wants,

pick something up, and then, almost abruptly he’s ready to buy. … For a

man, ignoring the price tag is almost a sign of virility.”

Paco Underhill, Why We Buy* (*Buy this book!)

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for

time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

“Women Beat Men at Art of Investing”

Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of

stocks more often; women choose carefully and hold on for the long term)

Marketing to Women: Help Them Save Time!

80% … work86% … cook

58% … run errands with kids38% … take child to school

21% … go to the gym21% … take outside classes

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked,

‘How was school today?’ a girl usually tells her mother every

detail of what happened, while a boy might grunt, ‘Fine.’ ”

EVEolution

Weight Watchers International “Model”

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

“Women don’t buy

brands. They join them.”

Faith Popcorn, EVEolution

Not!!

“Year of the Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“What kind of car does Mommy want?”

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

“Honey, are you sure you have the kind of money it takes to be looking at a car like

this?”

“Excuse me, doctor, but it’s my neck that’s

in pain!”

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. [PLEASE: THINK ABOUT IT!]

Psssst! Wanna see my “porn”

collection?

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s

power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders

about my fact-based conviction that women’s increasing power – leadership skills

and purchasing power – is the strongest and most dynamic force at work in the American

economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE

INTERNET!

Tom Peters

“If we are single, they say we couldn’t catch a man. If we are

married, they say we are neglecting him. If we are divorced,

they say we couldn’t keep him. If we are widowed, they say we

killed him.”

Kathleen Brown, on the joys of female political candidacy

Speaking of Enormous

[Missed] [Huge] Opportunities ...

Subject: Marketers & Stupidity

It’s 18-44, stupid!

Subject: Marketers & Stupidity

Or is it: 18-44 is stupid, stupid!

2000-2010 Stats

18-44: -1%55+: +21%

(55-64: +47%)

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!

“Such a critical mass of older women with a tradition

of rebellion and independence and a way of

making a living has not occurred before in history.”

Gerda Lerner, historian

Brand Outside

Strategy 7:Embracing an

Age of Self-Determination

The Individual

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

can create your own legend or not.”

Isabel Allende

The Organization:

Seller’s [Talent] Market

“Talented people are less likely to wait their turn. We used to view young people as trainees; now

they are authorities. Arguably this is the first time the older

generation can – and must – leverage the younger generation

very early in their careers”

Ed Michaels, War for Talent (05.17.00)

The Market: Fighting

Sameness with Distinction

“These days, you can’t succeed as a company if you’re consumer led –

because in a world so full of so much constant change, consumers can’t

anticipate the next big thing.

Companies should be idea-led and consumer-

informed.”Doug Atkin, partner,Merkley Newman Harty

Web World: POWER TO

THE PEOPLE

The control revolution. The potentially monumental shift in control from institutions to individuals made possible by new technology such as the Internet. The conflict over such

change between individuals and powerful entities (governments,

corporations, the media).

Source: Introduction, The Control Revolution, Andrew Shapiro

Women Get Respect … and

Take Charge

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

the last century.”Andrew Sullivan, The New Republic

The Elderly Get Respect … and

Take Charge

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

Our Biggest Industry: The Patient Takes

Charge

“Savior for the Sick”

vs.

“Partner for Good Health”

Source: NPR/VPR 08.15.00

“Online Medical Records Seen Empowering

Patients”

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

patients @ CareGroup

1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”

YES, NURSE. ME GOOD PUPPY DOG.

1995: “HMO will take care of you.”

BULLSHIT.

2005: “I will take care of me. I’d like your expert help.”

The “Specialist Syndrome” …and the [OVERWHELMING] Case

for Patient Self-determination

Lisa Gubernick gets 8 [significantly different] opinions from 8 docs re her back pain [Wall Street Journal:

10.06.00]

The Poor Get Respect

Grameen Bank/Bangladesh

“It’s not people who aren’t credit-worthy. It’s banks that aren’t

people worthy.”$2.3B to 2.3M [typical 1st loan: $15.]

98% recovery rate [94% to women!]

1/3rd out of poverty; 1/3rd up to non-poverty threshold

Muhammad Yunus, Banker to the Poor

“The Grameen loan is not simply cash. It

becomes a kind of ticket to self-discovery and

self-exploration.”

Muhammad Yunus

Sooooo …

Is your strategy centered around customer-client empowerment & self-

determination? Hint: This means letting go

of traditional sources of power!

How Dare They!

“Surfing the net is new route to college: But counselors fear that some students will pick schools with little guidance”

Headline, p1A, USA Today, 10.03.00

Brand Outside

Strategy 8:

BRAND POWER!

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take

up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.

Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions

to how we work with others. Companies will thrive on the basis of their stories and

myths. Companies will need to understand that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

Brand = You Must Care!

“Success means never letting the competition define you. Instead you have to define

yourself based on a point of view you care deeply about.”

Tom Chappell, Tom’s of Maine

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Brand = Special = Passion = Plot =

Compelling Mythology = Cause = Connection = Heart

Rules of “Radical Marketing”

Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!

Celebrate Craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

T.T.D./Calling the Corporate Shrink!

“Organizational Psychotherapy”/

WHO WE ARE!

T.T.D./Assignment Y2K

Write an essay on “Who we are.”*

* Jesper Kunde, Corporate Religion

T.T.D.: “How can I know what I think till I see what I say”*

Exercise : Write copy for a bookmark! (Etc.)

*Graham Wallas, The Art of Thought

What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and

you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded

sub-$200 watch market, they made it into a brand name, named after the most

irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they

can do it, we can do it.’ ”

Barry Gibbons

“Salt is salt is salt. Right? Not when it

comes in a blue box with a

picture of a little girl carrying an umbrella. Morton International continues to

dominate the U.S. salt market even though it charges more for a product that is

demonstrably the same as many other products

on the shelf.”

Tom Asaker, Humanfactor Marketing

Brand Outside

Reprise: Wimps & Weenies Need Not

Apply!

Lead the Customer: Why Tough

Guts!Failures!

Re-invention via ecommerce: Why Tough

Total commitment to total enterprise [and supply

chain] reinvention!

Systems Integration: Why Tough

Completely new view of what a “product” is.

Design: Why Tough

True-believer-dom-shipEncompassing/Cultural

Ing-ing/Experience: Why Tough

Total Reorientation

Women’s Market: Why Tough

EncompassingAttitude

CULTURAL!

Self-Determination: Why Tough

Cede Control

Brand Power: Why Tough

Way of LifeForever!

Passion Rules!Touches Everything!It Am Me [Personal!]

Message :

Not for the Faint of Heart!

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Leadership

Passion Rules!

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

“You must be the change you want to bring about.”

Gandhi

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

“A leader is a dealer in hope.”

Napoleon

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

Have you changed civilization today?

Source: HP banner ad