Lessons in Leadership:
Tom Peters SeminarM3
Rollercoaster Days:
Learning to … Rock &
Roll!
MSP/13Feb2001
More at … tompeters.com
Slides 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.
Etc.
“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
Rollercoaster Days2001: Blood on
retail‟s streets: Montgomery
Wards, Bradlees, Sears, Penney.
Layoffs/10K+: Chrysler [27K],
Lucent, WorldCom, GM.
GE: 80,000??? [I‟net driven.]
Other Big: Sara Lee, Ford,
Caterpillar. Human cloning within
1 year. First space tourist.
“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
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)
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
“We don‟t
Read It Again:
sell insurance
anymore. We sell
speed.”
Peter Lewis, Progressive
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Part I: Brand Inside
Part 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
I‟m sure
Committee, answered:
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
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]
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)
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Message: Destroy to
create!
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 5
vs.
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 [e.g.: Cisco owns 2 of 38
assembly plants]
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 ‟98
Source: Business Week (09.00)
Message: The W.C.R. is
inevitable. Lead it. Or get
swallowed by it.
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 Orleans
April 2000:
NAPM
You are the …
Rock Stars
of the
B2B Age!
Chicago
November 1999:
HRMAC
“support function” / “cost
center” / “bureaucratic
drag”
or …
Are you “Rock
Stars of the
Age of Talent”
Credo: W.W.P.F.
“WORK
WORTH
PAYING
FOR”
Every job done in
W.C.W. is also done
“outside” … for profit!
“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!
The Raw Material …
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
Message: PSF and WOW
Projects are minimum
W.C.R. survival
strategies. (And a better way
to live.)
Brand Inside
Brand You:
Distinct …
or
Extinct
2010 “Demographics”:
By 2010, full-time
workers will be in the
minority
Source: MIT study (28August2000)
“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
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Finishing Skills
Entrepreneurial Instinct
CEO/Leader/Businessperson
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
Brand You, Big Time!
I AM AN
ARMY OF
ONE
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)
Invent. Reinvent. Repeat.
Source: HP banner ad
Message: Distinct … or
Extinct.
Brand Inside
Brand Talent: The
Great War for Talent
The Case
“When land was the
productive asset, nations
battled over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
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)
PERSON
Arthur Blank: BEST
IN THE WORLD TO HEAD
EACH INITIATIVE
E.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
changed 20 of
Macadam at Georgia Pacific
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)
“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
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.”
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!
“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
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 skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “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
“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)
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]
Alert to Women …
Message S. Estrich:
Re-invent the Culture!
“ „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
Okay, you think I‟ve gone tooooo far.
DO ANY
How about this:
OF YOU SUFFER
FROM TOO MUCH
TALENT?
63 of top 2,500 earners in F500
8% Big 5 partners
14% partners at top 250 law firms
7% movie directors
43% new med students; 26% med
faculty; 7% deans
28% women VPs in line jobs
Source: Susan Estrich, Sex and Power
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!
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”
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
44 Players =
44 Projects =
44 different success
measures
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!
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World‟s
Greatest Managers Do Differently
Managing: “The people
thing” [Inspire one]
[Cool!]
Leading: “The vision
thing” [Inspire all] [Cool!]
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
[EVP = “The company‟s
fingerprint” = B.P.]
Source: Ed Michaels et al., The War for Talent
Message: Talent rules!
Women leaders rule!
Become “Talent
Obsessed”! Become
“EVP Obsessed”!
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
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”
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?
Reframers‟ Rules:
accept an
Rule 1: Never
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!
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
Fail.
Forward.
Fast.
High-tech exec, PA
“Success is the ability
to go from failure to
failure without losing
your enthusiasm.”
Winston Churchill
(as quoted by John Peterman)
THE SOFT STUFF
Connect!
Message: It‟s
Community
Organizing, stupid!
See: Saul Alinsky‟s
Rules for Radicals
BOTTOM LINE
The Enemy!
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”
*Fortune, article on
“Most Admired Global Corporations”
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Message: Think
EPITAPH!
Brand Inside
Reprise:
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” [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
Saviors-in-Waiting
Disgruntled Customers
Fringe Competitors
Rogue Employees
Edge Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
Button-down Org H.S.D.E. .
• Acquire for market share • Acquire for innovation
• Suck up to biggest customers • Partner with cool customers
• Pursue “strategic vendors” • Seek out pioneering vendors
• Bigger is better • Break it up … to refresh
• Accept assignments as given • Reframe all tasks to innovate
• Hire 4.0s from “top schools” • Hire “intriguing,” wherever
• Promote when they‟ve “paid • Promote tomorrow if the work
their dues” product is weird and WOW
• Appoint a “prestigious” board • Appoint an interesting,
headstrong board
• Hang out with my pals • Take a freak to lunch today
• R.A.F. • F.F.F.
• Be “professional” at all • Stay loose, stay cool/The hell
times/Honor thine elders with thine elders
“But don‟t we
need some
grout between
the tiles?”
Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.
N.W.O.: Was Is Is
• Pine-paneled Office • Seat 9B, UA233
• Address: 1 Big Man Plaza • Address: Anne@Corp.com
• Secretary • Typing: 60 WPM
• Suit • Casual M-F
• Formal • Approachable
• Rank conscious • We are a HOT Team
• Pretense (“Failures are • Screwing up is as normal
for fools.”) as breathing
• I love “Yes men” • I love Misfits!
• Self-contained • I love partners
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
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
“Companies have defined
so much „best practice‟
that they are now more or
less identical.”
Jesper Kunde, A Unique Moment
Message: “Similar” kills!
Stomp out the Sameness
Epidemic!
Brand Outside
Strategy 1:
Lead the Customer!
“If you worship at the
throne of the voice of the
customer, you‟ll get only
incremental advances.”
Joseph Morone, President,
Bentley College
“These days, you can‟t succeed as a
company if you‟re consumer led –
because in a world so full of so much
constant change, consumers can‟t
anticipate the next big thing.
Companies should be idea-
led and consumer-
informed.”
Doug Atkin, partner, Merkley Newman Harty
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
Nypro!
Message: Seek out
freaks! Listen to your
intuition. Rock & Roll on
the fringes!
Brand Outside
Strategy 2:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
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 day
Source: www.ecompany.com (1-2/2001)
GM/Ford/DaimlerChrysler/Renault/
Nissan/Oracle/CommerceOne
Covisint (02.2000)
$240B (+$500B)
90,000 Suppliers
$2-3,000/Car
42 to 12-18 Months
Source: Business2.0 (02.2001)
Next Up for the Web: Small Bus!
IDC (01.22.01): Small bus*
eCommerce revenue will
grow from $12B in 1999 to
$110B in 2003 (75% p.a.).
*There are 25.5 small bus and home bus
“The Internet is not going away –
but flawed business models are.”
– fool.com.
“All these people running around
saying the Internet is dead – that‟s
ridiculous.”
– Advertising Age.
Sabre I‟net revenues … +201%.
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)
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
“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]
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Is:
Customer
Control”
“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
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
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]
“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‟ innards
Web 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 Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web 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
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!
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
“ENRON operates networks throughout the
world to develop and enhance energy and
broadband communication services. Networks,
unlike vertically integrated business structures,
facilitate the flow of information and expertise. We
can spot market signals faster and respond more
quickly. Networks empower individuals, freeing
them to craft innovative and substantive solutions
to customer problems. Networks are the foundation
of our knowledge-based businesses, and they
provide exceptional returns and value for our
shareholders.”
from the 2000 Annual Report
“These days, building
the best server isn‟t
enough. That‟s the
price of entry.”
Ann Livermore, Hewlett Packard
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting bus!
(31,000 bods)
Message: Survivors will
move all their operations
to the Web. Now. Web =
Encompassing … or else.
Brand Outside
Strategy 3:
Design Matters!
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
features.
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
Design is
meaning of design.
the fundamental soul
of a man-made creation.”
Steve Jobs
Message: “Great -
Cool Stuff” Matters.
Great & Cool Trumps
Not-So-Great &
Ho Hum!
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
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
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 “is” … WHY I
GET MAD. MAD.
Wanted: Dead
[preferably] or Alive:
THE DESIGNER OF
MY RADIO SHACK
PHONE. Major
Reward!
Design is never neutral.
DESIGN is the
Hypothesis:
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.
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.”
Brand Outside
Strategy 4:
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 …
Story
Adventure
Smile
Focus
Plot
Passion
Plot
Williams Sonoma = 5 [was 10]
Crate & Barrel = 8
Sharper Image = 9+
Smith & Hawken = 8+
Garnet Hill = 9
L.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
1985: Party @ Chuck E. Cheese
(experience economy) $100.00
Message: “Experience”
is the “last 80%.”
“Experience” applies to
all work!
Brand Outside
Strategy 5:
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%
????
Riding Lawnmowers
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% 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 Strap
1977 … 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, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: 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% … work
86% … cook
58% … run errands with kids
38% … take child to school
21% … go to the gym
21% … 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
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
“Women don‟t buy
brands. They
join them.”
Faith Popcorn, EVEolution
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
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
Message: WHAT AN
[overlooked] OPPORTUNITY!
Please pay attention.
Brand Outside
Strategy 5A:
Welcome to
“Old World”!
Speaking of
Enormous
[Missed] [Huge]
Opportunities ...
Subject: Marketers & Stupidity
It‟s 18-44,
stupid!*
*18-24: XFL
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
Message: WHAT AN
[overlooked] OPPORTUNITY!
Brand Outside
Strategy 6:
Embracing an
Age of
Self-Determination
“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
“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
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
Announcing Cingular. In
the hope that every
single person
experiences the sheer joy
of self-expression.
Source: ad, for Cingular Wireless
“Greater opportunity for
women is probably the
most significant gain
for human freedom in
the last century.”
Andrew Sullivan, The New Republic
“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
“The best
drkoop.com:
prescription is
knowledge.”
THE FUTURE: Patients Rule!
Control Over Aging! [M&F Cosmetic Surgery, Viagra]
Targeted Therapies = High Expectations
The Internet! [meds, expert consultation, info-
knowledge incl. outcome data & own recs, interaction
with peers & docs, awareness that experts aren‟t]
Alt Therapies! [more visits, some insurer recognition]
Awareness [medicine as front-page news, ads]
Boomers! [#s, $$$, Ethos of self-control]
Prevention/Wellness
HMO [no-choice] Revolt
“Age of Talent” [Be nice, boss!]
Speed! [surgicenters, out-patient, self-admin regimens]
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 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!
Corporate Resistance to “It”
“It all goes back to fear of
losing control!”
The Cluetrain Manifesto
Message: We are in a
“People‟s [customer/ patient/
citizen/ etc.] Revolution.”
Brand Outside
Strategy 7:
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
Companies will
to how we work with others.
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
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
“WHO ARE
YOU [these days] ?”
TP to Client
Jesper Kunde‟s Challenge:
All business processes
should be aligned with the
Brand/Value Promise.
Think … Brand Driven
Systems!
Message: Branding is
personal. Branding is
integrity. Branding is
what I care about and
why it matters.Branding
can‟t be faked. Branding
is a systemic, 24/7 affair.
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
TP to TP: Should I merge
the Brand and Leadership
sections?
Brand Leadership
Passion Rules!
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
“It is necessary for the
President to be the
nation‟s No. 1 actor.”
FDR
“You must be the
change you wish
to see in the
world.”
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)
Brand Leadership:ENTHUSIASM RULES!
Ben Zander: “I am a
dispenser of
enthusiasm.”
“A leader is a
dealer in hope.”
Napoleon
“[Ronald Reagan]
radiated an almost
transcendent
happiness.”
Lou Cannon, George (08.2000)
Message: Leadership is
all about love! [Passion,
Engagement, Great Causes, Shared
Adventures, Growth.]