Tom Peters/ SouthAfrica2002 Leading in Totally Screwed-Up Times 12August2002/Johannesburg “If you don‟t like change, you‟re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army Tom‘s 15 TIBs 1. Technicolor. 2. Passion. 3. Action/R.F!A. 4. Screw-ups. 5. Mess. 6. Revolution. 7. eALL. 8. Forgetting/Destruction. 9. Daring. 10. Talent. 11. Talent+/Diversity. 12. Talent++/Women. 13. Design. 14. Experiences. 15. New Demographics/Women/Aging/Green. The Context. ―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 The Leadership The Basic Premise. 1. Leadership Is a … Mutual Discovery Process. Leaders-Teachers Do Not ―Transform People‖! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: ―they‖ don‘t engage unless they‘re ―mad about something‖) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers- leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage ―photo-ops,‖ and ring the church bells 100 times to commemorate the bravery of their ―followers‘ ‖ explorations! 1A. Leaders … Cede Control. ―I don‘t know.‖ 1B. Not Leaders Try … to Screw Things Up ―Ninety percent of what we call ‗management‘ consists of making it difficult for people to get things done.‖ – P.D. The Leadership Types. 2. Great Leaders on Snorting Steeds Are Important – but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul. 25/8/53* (*Damn it!) Whoops: Jack didn‘t have a vision! 2A. ―Just One‖: Great Leading = Great Mentoring. T.A.: 2B. Great Leaders are … Great V.C.s. ―Basically [Omnicom‘s John] Wren makes aggressive bets on entrepreneurs and gives them tremendous autonomy, on the assumption that the risk-taking will pay off in new ideas, connections, businesses, and, yes, revenues and profits. … ‗Omnicom operates like a venture-capital firm,‘ says Sir Martin Sorrell [of WPP].‖ Business 2.0 (09.17.2001) 3. But Then Again, There Are Times When This ―Cult of Personality‖ (Type II Leadership) Stuff Actually Works! ―A leader is a dealer in hope.‖ Napoleon (+TP‘s writing room pics) 4. Find the ―Businesspeople‖! (Type III Leadership) I.P.M. (Inspired Profit Mechanic) 4A. All Organizations Need the Golden Leadership Triangle. The Golden Leadership Triangle: (1) Creator- Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. 5. Leadership Mantra ALL #1: IT DEPENDS! Renaissance Men are … a snare, a myth, a delusion! 5A. The Leader Is Rarely/Never the Best Performer. 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson—1 season. The Leadership Dance. 6. Leaders … SHOW UP! P.S. … 5,000 Mark McCormack: miles for a 5 min. meeting! 6A. Leaders … LOVE the MESS! “I‟m not happy unless I‟m uncomfortable.” —Jay Chiat “If things seem under control, you‟re just not going fast enough.” Mario Andretti 7. Leaders 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!) Read It Closely: ―We don‘t sell We insurance anymore. sell speed.‖ Peter Lewis, Progressive 7A. Leaders Re -do. ―If Microsoft is good at anything, it‘s avoiding the trap of worrying about criticism. Microsoft fails constantly. They‘re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they‘ve gained in other markets to enforce their standard.‖ Seth Godin, Zooming ―Sony Electronics has a well- earned reputation for persistence. The company‘s first entry into a new field often isn‘t very good. But, as it has shown in laptops, Sony will keep trying until it gets it right.‖ Business Week (5/01) “If it works, it‟s obsolete.” —Marshall McLuhan 7B. Leaders Are PLAYFUL. ―You can‘t be a serious innovator unless and until you are ready, willing and able to seriously play. ‗Serious play‘ is not an oxymoron; it is the essence of innovation.‖ Michael Schrage, Serious Play 8. BUT … Leaders Know When to Wait. Tex Schramm: The ―too hard‖ box! Leaders know when to … RETREAT. Pick your Axioms: (1) battles carefully. (2) Sometimes inaction promotes sorting out & preserves options. 9. Leaders … DELIVER! 9A. Leaders KNOW They Can Make a Difference! ―Leaders don‘t ‗want to‘ win. Leaders ‗need to‘ win.‖ #49 “It is no use saying „We are doing our best.‟ You have got to succeed in doing what is necessary.” —WSC ―When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played—or does she keep wandering back to strategy or philosophy?‖ —Larry Bossidy, Honeywell/AlliedSignal, in Execution 9B. Leaders Are … Optimists. Hackneyed but none the less LEADERS SEE true: CUPS AS ―HALF FULL.‖ ―[Ronald Half-full Cups: Reagan] radiated an almost transcendent happiness.‖ Lou Cannon, George (08.2000) 10. BUT … Leaders Are Realists/Leaders Win Through LOGISTICS! The ―Gus [Pagonis] Imperative‖! 11. Leaders FOCUS! ―To Don‘t ‖ List 11A. Leaders … Set CLEAR DESIGN SPECS. Danger: S.I.O. (Strategic Initiative Overload) JackWorld/ 1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) ―1, 2 or out‖ Jack. (Lead or leave.) (3) ―Workout‖ Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK! 11B. Leaders … Send V-E-R-Y Clear Signals About Design Specs! Ridin‘ with Roger: ―What have you done to DRAMATICALLY IMPROVE quality in the last 90 days?‖ It‘s Relationships, Stupid. 12. Leaders Trust in TRUST! Credibility 12A. Leaders Infuse the Dreaded-All Important ―Evaluation Process‖ with CREDIBILITY! 25 = 100 13. Leaders … Understand the Ultimate Power of RELATIONSHIPS. ―Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.‖ Judy Rosener, America‘s Competitive Secret ―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 14. Leaders Know … Women Roar/ Women Rule. ―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 Women‘s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure ―rationality‖; inherently flexible; appreciate cultural diversity Source: Judy B. Rosener, America‘s Competitive Secret If It Ain‘t Broke … Break It. 15. Leaders … FORGET!/ Leaders … DESTROY! 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 Forbes100 from 1917 to 1987: 39 members of the Class of ‘17 were alive in ‘87; 18 in ‘87 F100; 18 F100 ―survivors‖ underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ‘57 were alive in ‘97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market ―Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.‖ Clayton Christensen, The Innovator‘s Dilemma Whaddaboutheproduct? 20 of 26 7 of top 10* *P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 categories. (The ―billion- dollar‖ problem.) Source: Advertising Age 01.21.2002/BofA Securities Primary Obstacles to ―Marketing-driven Change‖ 1. Fear of ―cannibalism.‖ 2. ―Excessive cult of the consumer‖/ ―customer driven‖/ ―slavery to demographics, market research and focus groups.‖ 3.Creating ―sustainable advantage.‖ Source: John-Marie Dru, Disruption Leaders ―dump the ones who brung ‘em‖ —Nokia, HP, 3M, PerkinElmer, Corning, etc. Cortez! Jim & Tom. Joined at the hip. Not. The [New] Ge Way DYB.com 16. BUT … Leaders Have to Deliver, So They Worry About ―Throwing the Baby Out with the Bathwater.‖ ―Damned If You Do, Damned If You Don‘t, Just Plain Damned.‖ Subtitle in the chapter, ―Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,‖ Liberation Management (1992) ―Organize‖ for … performance & customer satisfaction. ―Disorganize‖ for … renewal & innovation. 17. Leaders … HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision CUSTOMERS: ―Future- defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.‖ Adrian Slywotzky, Mercer Consultants COMPETITORS: ―The best swordsman in the world doesn‘t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn‘t do the thing he ought to do, and so the expert isn‘t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.‖ Mark Twain Employees: ―Are there enough weird people in the lab these days?‖ V. Chmn., pharmaceutical house, to a lab director (06.01) is an ominous Suppliers: There 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 17A. Leaders … HANG OUT WITH FREAKS! 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 ―Deviance tells Deviants, Inc. the story of every mass market ever created. What starts out weird and dangerous becomes America‘s next big corporate payday. So are you looking for the next mass market idea? It‘s out there … way out there.‖ Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don‘t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don‘t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company‘s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation WE Leaders know … BECOME WHO WE HANG WITH! Message: TAKE NEW & SOMEONE WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.] 18. Leaders Make [Lotsa] Mistakes – and MAKE NO BONES ABOUT IT! Sam‘s Secret #1! “Fail faster. Succeed sooner.” David Kelley/IDEO Fail. Forward. Fast. –High-tech Exec ―The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.‖—Newsweek/ Paul Saffo (03.02) Read This! Whoever Richard Farson & Ralph Keyes: Makes the Most Mistakes Wins: The Paradox of Innovation 18A. Leaders Make … BIG MISTAKES! ―Reward excellent failures. Punish mediocre successes.‖ Phil Daniels, Sydney exec (and, de facto, Jack) 18B. Leaders Honor Mistakes & Create ―Blame-free ‗Cultures.‘ ‖ Winning By Acknowledging Failures Wernher Von Braun, the Redstone missile engineer who ―confessed‖ & the bottle of champagne. Award to the sailor on the Carl Vinson—for reporting the lost tool. Amy Edmondson & the successful nursing units with the highest reported adverse drug events. Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected Accountability: YES! Never-ending witch hunts: NO! Create. 19. Leaders Know that THERE‘S MORE TO LIFE THAN ―LINE EXTENSIONS.‖ Leaders Love to CREATE NEW MARKETS. ―Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.‖ Peter Job, CEO, Reuters No one ever made it into the Business Hall of Fame on a record of ―line extensions.‖ 20. Leaders Pursue DRAMATIC DIFFERENCE! 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/―One Great Thing.‖ Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3RD Law: DRAMATIC DIFFERENCE (Execs Don‘t Get It: ―intent to purchase‖ – 100%; ―unique‖ – 0% to 5%) Source: Jump Start Your Business Brain, Doug Hall ―They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what‘s the point, the message, the story line, the Big Idea that makes ‗it‘ all hang together?‖ —Exec, major consumer goods company 20A. Leaders … Make Their Mark / Leaders … Do Stuff That Matters ―I never, ever thought of myself as a businessman.I was interested in creating things I would be proud of.‖ —Richard Branson 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 Trends. 21. Leaders ―Get‖ the … Big3 Trends Trends I: Women Roar. ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (―home projects‖) … 80% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80% 2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed $4.8T > Japan 9M/27.5M/$3.6T > Germany 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.‖ Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand ―The ‗Connection Proclivity‘ in women starts early. When asked, ‗How was school today?‘ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‗Fine.‘ ‖ EVEolution ―Women don‘t buy They brands. join them.‖ EVEolution Not ! ―Year of the Woman‖ “Honey, are you sure you have the kind of money it takes to be looking at a car like this?” 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 Alto resident … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters Ad from Furniture /Today (04.01): ―MEET WITH THE EXPERTS!: How Retailing‘s Most Successful Stay that Way‖ Presenting Experts: M = 16; F= ?? (94% = 272) Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors, engineers, bankers--sitting around designing shopping centers. And the „end users‟ will be overwhelmingly women!” Stupid! ―Women Beat Men at Art of Investing‖ Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are ―in and out‖ of stocks more often; women choose carefully and hold on for the long term) Investment Club Returns Women-only clubs 1997 … 17.9% Mixed … 17.3% Men-only … 15.6% Source: National Assoc. Investors Value Line: Top State* Investment Clubs 2000 8 … All male 19 … Coed 22 … All FEMALE * VT & Maine not included; D.C. included ―Customer is King‖: 4,440 ―Customer is Queen‖: 29 Source: Steve Farber/Google search/04.2002 No: ―Target Marketing‖ Yes: ―Target Innovation‖ & ―Target Delivery Systems‖ Trends II: Boomer Bonanza/ Godzilla Geezer. Subject: Marketers & Stupidity ―It‘s 18-44, stupid!‖ Subject: Marketers & Stupidity ―18-44 is Or is it: stupid, stupid!‖ 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $610B healthcare spending/ 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old ―Marketers attempts at reaching those over 50 have been miserably No market‘s unsuccessful. motivations and needs are so poorly understood.‖ Peter Francese, — founding publisher, American Demographics ― ‗Age Power‘ will rule the 21 century,st and we are woefully unprepared.‖ Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old No: “Target Marketing” Yes: “Target Innovation” & “Target Delivery Systems” Trends III: Green = $$$$$$ “Of all the ways the company will be judged over the next decade, none will be greater than our response to the issue of climate change.” William Clay FORD Jr. 50% to 36%: And #3: GREEN?????: Protect Environment > Economic Growth. 58% to 34%: Protect Plants & Animals > Preserve Private Property Rights. E.g.: Genetically Altered Food Would eat: M, 71%; F, 50% Give to children: M, 59%; F, 37% Pay more for non-altered: M, 35%; F, 47% Source: www.pulse.org & USA Today No: ―Target Marketing‖ Yes: ―Target Innovation‖ & ―Target Delivery Systems‖ Women‘s/Aging/Green Market: Why Tough? Encompassing! Attitude! CULTURAL! New Model. 22. Leaders … Understand the Enormity of the White Collar Revolution. 108 X 5 vs. 8X1 = 540 vs. 8 (-98.5%) E.g. … Jeff Immelt: 75% of ―admin, back room, finance‖ ―digitalized‖ in years. Source: BW (01.28.02) IBM‘s Project eLiza!* * ―Self-bootstrapping‖/ ―Artilects‖ EKGs Deep Blue Redux*: 2,240 … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of : 620. Lund/SW) Lars Edenbrandt‘s software: 738. *Only this time it matters! ―Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer- generated robots will take over the world.‖ – Stephen Hawking, in the German magazine Focus 23. Leaders … Turn All Departments into ―PSFs.‖ So what will be the Basic Building Block of the New Org? Every job done in W.C.W. is also done “outside” …for profit! Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc. eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Model PSF … (1) Translate ALL departmental activities into discrete W.W.P.F. ―Products.‖ (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining ―Centers of Excellence‖ are retained & leveraged to the hilt! ―Typically in a mortgage company or financial services company, ‗risk management‘ is an overhead, not a revenue center. We‘ve become more than that. We pay for ourselves, and we actually make money for the company.‖ —Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com) 24. Leaders Push Their W-a-y Up Organizations the Value-added/ Intellectual Capital Chain The Day! 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business! ―These days, building the best server isn‘t enough. That‘s the price of entry.‖ Ann Livermore, Hewlett-Packard Systems Gerstner‘s IBM: Integrator of choice. Global Services: $35B. Pledge/‘99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01). “You are headed for commodity hell if you don‟t have services.”—Lou Gerstner on IBM‘s coming revolution (1997) ―We want to be the air traffic controllers of electrons.‖ Bob Nardelli, GE Power Systems ―Customer Satisfaction‖ to ―Customer Success‖ ―We‘re getting better at [Six Sigma] every day. But we really need to think about the customer‘s profitability. Are customers‘ bottom lines really benefiting from what we provide them?‖ Bob Nardelli, GE Power Systems Keep In Mind: Customer Satisfaction versus Customer Success Was: ―Big Iron‖ Transformer Dudes Division. Traffic Controllers Is: Air of Electrons. Was: Bunchof Guys Who Make Circuit Breakers Division. Is: GE Industrial Systems. Nardelli‘s goal ($50B to $100B by 2005): ―… move Home Depot beyond selling ‗goods‘ to selling ‗home services.‘ … He wants to capture home improvement dollars wherever and however they are spent.‖ E.g.: ―house calls‖ (At-Home Service: $10B by ‘05?) … ―pros shops‖ (Pro Set) … ―home project management‖ (Project Management System … ―a deeper selling relationship‖). Source: USA Today/06.14.2002 E.g. … UTC/Otis + Carrier: boxes to ―integrated building systems‖ ―UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.‖ ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers) ―No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it‘s financial security, buying a car, paying for home repairs, or even taking a dream vacation.‖—Martin Feinstein, CEO, Farmers Group ―VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.‖ –New York Times (12.16.2001) Omnicom: (of $6B) from marketing services 25. Leaders … Demolish Stovepipes! ―The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.‖ —Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organization Limits. ―In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don‘t talk to each other.‖ Boston Globe (09.30.2001) ―Once devised in Riyadh, the tasking order took hours to get to the Navy‘s six aircraft carriers—because the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike.‖ –Bill Owens, Lifting the Fog of War The … Solutions25. 1. It‘s the (OUR!) organization, stupid! 2. Friction free! 3. No STOVEPIPES! 4. ―Stovepiping‖ is a F.O.—Firing Offense. 5. ALL on the web! (ALL = ALL.) 6. Open access! 6. Project Managers rule! (E.g.: Control the purse strings and evals.) 7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.) 8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.) 9. Solutions = ―Our ‗culture.‘ ‖ 10. Partner with B.I.C. (Best-In-Class). Period. 12. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc. 13. Project Management can come from any function. 14. WE ARE ALL IN SALES. PERIOD. 15. We all invest in ―wiring‖ the customer organization. 16. WE ALL ―LIVE THE BRAND.‖ (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.) 17. We use the word ―PARTNER‖ until we all want to barf! 18. We NEVER BLAME other parts of our organization for screw-ups. 19. WE AIM TO REINVENT THIS INDUSTRY! 20. We hate the word-idea ―COMMODITY.‖ 21. We believe in ―High tech, High touch.‖ 22. We are DREAMERS. 23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.) 24. If we play the ―SOLUTIONS GAME‖ brilliantly, no one can touch us! 25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE ―All Hands‖ affair! Innovation & Speed‘s ―New Basics‖* 1. XFTs are the ―culture.‖ 2. Project-centric. 3. Open ―talent market.‖ 4. ―Cause-based‖ projects. 5. Ubiquitous ―open systems.‖ IS—at home & throughout supply chain. Web based. 6. F-L-A-T. *Innovation, Speed, CRM, ―Experience‖/ ―Solution‖ demand this KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences. WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls. ―Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.‖ Ray Lane, Kleiner Perkins [ Words to Live By … ―Hierarchy is an organization with its face toward the CEO and its ass toward the customer.‖ Kjell Nordstrom and Jonas Ridderstrale, Funky Business] ―Supply Chain‖ 2000: ―When Joe Employee at Company X launches his browser, he‘s taken to Company X‘s personalized home page. He can interact with the entire scope of Company X‘s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers don‘t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.‖ Red Herring (09.2000) 26. Leaders Know that the ―HVA/Solutions Revolution‖ rests upon: Experiences … Dream Fulfillment … Design. A World of Scintillating/ Awesome/ WOW ―Experiences.‖ ―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 ―Club Med is more than just a ‗resort‘; it‘s a means of rediscovering oneself, of inventing an entirely new ‗me.‘ ‖ Source: Jean-Marie Dru, Disruption ―Guinness as a brand is all about community. It‘s about bringing people together and sharing stories.‖—Ralph Ardill, Imagination, in re Guinness Storehouse 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 The ―Experience Ladder‖ Experiences Services Goods Raw Materials “I see us as being in Bob Lutz: the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Source: NYT 10.19.01 ―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 ―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.] Experiences+: Embracing the ―Dream Business.‖ DREAM: ―A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.‖ —Gian Luigi Longinotti-Buitoni Common Products ―Dream‖ Products Maxwell House Starbucks BVD Victoria‘s Secret Payless Ferragamo Hyundai Ferrari Suzuki Harley Davidson Atlantic City Acapulco New Jersey California Carter Kennedy Conners Pele CNN Millionaire Source: Gian Luigi Longinotti-Buitoni Building the Creative Organization Choose a creator: The cultural leader who gives the company an aesthetic point of view. Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion. Prepare vertically: Develop a rigorous understanding of the product and the client. Develop horizontally: Promote curiosity in unrelated disciplines. Lead emotionally: Engender passionate dedication through vision and freedom. Build for the long haul: Creativity requires a lifetime commitment. Source: Gian Luigi Longinotti-Buitoni Emotional Design that Interprets Dreams ―Zero defects‖: Only the starting point. Love at first sight. Design for the five senses. Develop to expand the Main Dream. Design so as to seduce through the peripheral senses. Source: Gian Luigi Longinotti-Buitoni The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients‘ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the ―buzz,‖ the ―hype,‖ the ―cult.‖ Source: Gian Luigi Longinotti-Buitoni The ―Soul‖ of [Mostly Ignored] ―Experiences‖: Design Rules! Design‘s place in the universe. 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 ―Design is treated like a religion at BMW.‖ Fortune ―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 Bottom Line. Design ―is‖ … WHAT & WHY I LOVE. LOVE. Design ―is‖ … WHY I GET MAD. MAD. Design is never neutral. DESIGN is the Hypothesis: principal difference between love and hate! THE BASE CASE: I am a design fanatic. Though not ―artistic,‖ I love ―cool stuff.‖ 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 another ―one of those things‖ that damn few companies put – consistently – on the front burner. Message (?????): Men cannot design for women‘s needs. ―Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it‘s female.‖ Source: Philippe Starck, Harvard Design Magazine (Summer 1998) Technology. 27. Leaders LOVE the New Technology! square feet WebWorld = Everything Web as a way to run your business‘s 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. ―There‘s no use trying,‖ said Alice. ―One can‘t believe impossible things.‖ ―I daresay you haven‘t had much practice,‖ said the Queen. ―When I was your age, I always did it for half an hour a day. Why, sometimes I‘ve believed as many as six impossible things before breakfast.‖ Lewis Carroll I‘net … … allows you to dream dreams you could never have dreamed before! ―Suppose—just suppose—that the Web is a new world we‘re just beginning to inhabit. We‘re like the earlier European settlers in the United States, living on the edge of the forest. We don‘t know what‘s there and we don‘t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn‘t hold here, and uncommon sense hasn‘t yet emerged.‖ David Weinberger, Small Pieces Loosely Joined 28. Needed? Type IV Leadership: Technology Dreamer-True Believer The Golden Leadership Quadrangle: (1) Creator- Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer Talent. 29. When It Comes to TALENT … Leaders Always Swing for the Fences! From ―1, 2 or you‘re out‖ [JW] to … ―Best Talent in each industry segment to build best proprietary intangibles‖ [EM] Source: Ed Michaels, War for Talent (05.17.00) people are Message: Some better than other people. Some people are a helluva lot better than other people. 30. Leaders Don‘t Create ―Followers‖: THEY CREATE LEADERS! “I start with the premise that the function of leadership is to produce more leaders, not more followers.”—Ralph Nader Brand You, Big Time! I AM AN ARMY OF ONE 31. Leaders ―Win Followers Over‖ WHAT AN IDIOT: ―Instead of employees being in the driver‘s seat, now we‘re in the driver‘s seat.‖ “Coaching PJ: is winning players over.” 32. Leaders ―Manage‖ Their EVP/Internal Brand Promise. MantraM3 Talent = Brand EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent 33. Leaders LOVE KIDS. ―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] 8 Minutes* —Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then there‘s oya yubi sedai, the ―thumb generation‖ 33A. Leaders Pursue Poets! Gardner‘s MI7: Logical- mathematical, Linguistic, Spatial, Musical, Bodily-kinesthetic, Interpersonal, Intrapersonal. Passion. 34. Leaders … Out Their PASSION! G.H.:―Create a ‗cause,‘ not a ‗business.‘ ‖ ―Vision is a love affair with an idea.‖ —Boyd Clarke & Ron Crossland, The Leader‘s Voice ―Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs.‖ Source: Jean-Marie Dru, Disruption 35. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! BZ: “I am a … Dispenser of Enthusiasm!” 35A. Leaders Watch Their … LANGUAGE! Language matters! 36. Leaders Focus on the SOFT STUFF! ―Soft‖ Is ―Hard‖ - ISOE Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP‘s final words: CYNICISM SUCKS.] 36A. Leaders Know … ―Culture Change‖ Takes But a Minute. (No Bull!) What Do I ―Do‖ First? One Minute Excellence!* *Thomas Watson Culture Change is not ―Corporate.‖ Culture Change is not a ―Program.‖ Culture change does not take ―Years.‖ Culture Change does not start ―Today.‖ Culture Change starts Right Now! Culture Change Lives in the Moment! Culture Change is Entirely in Your Hands! The ―Job‖ of Leading. 37. Leaders Know It‘s ALL SALES ALL THE TIME. If you don‘t LOVE TP: SALES … find another life. (Don‘t pretend you‘re a ―leader.‖) (See TP‘s The Project50.) 37A. Leaders LOVE ―POLITICS.‖ TP:If you don‘t LOVE POLITICS … find another life. (Don‘t pretend you‘re a ―leader.‖) 38. But … Leaders Also Break a Lot of China If you‘re not pissing people off, you‘re not making a difference! Characteristics of the ―Also rans‖* ―Minimize risk‖ ―Respect the chain of command‖ ―Support the boss‖ ―Make budget‖ *Fortune, article on ―Most Admired Global Corporations‖ Joe J. Jones 1942 – 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN‟T LET HIM! 39. Leaders Give … RESPECT! ―It was much later that I realized Dad‘s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a was bishop or a college president. He seriously interested in who you were and what you had to say.‖ Sara Lawrence-Lightfoot, Respect ―It is impossible to claim that all good teachers use similar techniques: some lecture nonstop and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‗Dr. A is really there when he teaches.‘ ‗Mr. B has such enthusiasm for his subject.‘ ‗You can tell that this is really Prof. C‘s life.‘ ‖ Parker Palmer, The Courage to Teach 40. Leaders Say “Thank You.” ―The deepest human need to need is the be appreciated.‖ William James ―The two most powerful things a kind in existence: word and a thoughtful gesture.‖ Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It‘s Not Business, It‘s Personal] 40A. Leaders Are … Graceful. ―My favorite word is grace – whether it‘s amazinggrace, saving grace, grace under fire, Grace Kelly. How we live contributes to beauty – whether it‘s how we treat other people or the environment.‖ Celeste Cooper, designer Rodale‘s on ―Grace‖ … elegance … charm … loveliness … poetry in motion … kindliness .. benevolence … benefaction … compassion … beauty 41. Leaders LISTEN! See Stephen! (Empathetic Listening) 41A. Leaders Are … Curious. The Three Most TP/08.2001: Important Letters … 42. Leadership Is a … Performance. “It is necessary for the President to be the No. 1 nation‟s actor.” FDR “You can‟t lead a cavalry charge if you think you look funny on a horse.” —John Peers, President, Logical Machine Corporation 43. Leaders … Are The Brand ―WHO ARE YOU [these days] ?‖ TP to Client The BRAND lives (OR DIES) in the ―minutiae‖ of the leader‘s moment- to-moment actions. ―You must be the change you wish to see in the world.‖ Gandhi ―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 44. Leaders … GREAT Have a STORY! ―A key – perhaps the key – to leadership is the effective communication of a story.‖ Howard Gardner Leading Minds: An Anatomy of Leadership ―Stories of identity – narratives that help individuals think about and feel who they are, where they come from, and where they are headed – constitute the single most powerful weapon in the leader‘s arsenal.‖ Howard Gardner, Leading Minds: An Anatomy of Leadership ―Early in my career in the law I learned he who has that … the best story wins.‖ JQ Adams/A Hopkins to T Joadson/M Freeman MB A!* *Managing By Story-ing Around/David Armstrong 45. Leaders Seed & Pursue & Recognize (Weird) ―Demos.‖ ―Some people look for things that went wrong and I look for try to fix them. things that went right and try to build on them.‖ —Bob Stone/ Mr. Rego/ Confessions of an Uncivil Servant Leaders aimed on changing their palpable world identify heroes, who executed palpable projects—they point to these people and say to the masses, ―See, here it is, done by one of your own.‖ (And then they ―deep-dip‖ a few of those heroes to demo their seriousness.) REAL Org Change: Demos & Models (―Model Installations,‖ ―ReGo Labs‖)/ Heroes (mostly extant: ―burned to reinvent gov‘t‖)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors/ Support Groups/ End Runs—―Pull Strategy‖ (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field ―Real People‖ Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the ―bad guys‖ can react) C.f., Bob Stone, Confessions of an Uncivil Servant Each VP a V.C.: Portfolio of high-risk investments in people & ideas from all across the company. Introspection. 46. Leaders … Enjoy Leading. Warren‘s ―Whoops Moment‖ … ―Warren, I know you want to ‗be‘ president. But do you want to ‗do‘ president?‖ 46A. Leaders … KNOW THEMSELVES. Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (―Leaders‖ who are not comfortable with themselves become petty control freaks.) 46B. But … Leaders have MENTORS. Upon The Gospel According to TP: having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.) 47. Leaders LAUGH! 47A.But … Leaders Know ―It‘s My Fault.‖ You recruited ‘em. You hired ‘em. You trained ‘em. You evaluated ‘em. You ―motivated‖ ‘em. 47B. Leaders Don‘t Scapegoat / Allow Scapegoating. ―When a plane crashes, they ask, ‗What happened?‘ In medicine they ask: ‗Whose fault was it?‘ ‖—James Bagian, M.D. & former astronaut, now working with the VHA. 48. Leaders … Take Breaks. Zombie! Zombie! Zombie! Zombie! The End Game. 49. Leaders ???: ―Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.‖ ― ‗It‘s only business, not personal‘ … IT ALWAYS IS PERSONAL.‖ ―Hire smart – go bonkers – have grace – make mistakes – love technology – start all over again.‖ ―LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES‖ Bonus: Boss Talk Branding: Kevin Roberts: ―The great brands have mystery and sensuality. Apple is the most sensual product since the vibrator.‖/ Tina Brown: ―You should be able to throw a magazine on the floor at any page and know whose magazine it is.‖/ The Perils of ―Me-too‖: Stephen Hardis (Eaton): ―Don‘t have your resources trapped in areas that are inherently zero-sum games with a very marginal return.‖/ Phil Condit (Boeing): ―Just doing what your competitor does is the biggest opportunity to lose money. Douglas and Lockheed built tri-jets to the identical specs and beat each other silly.‖ Jeff Bezos: ―It‘s easy to let the in- box side of your life overwhelm you, so you become a totally reactive person. The only remedy I know is to set aside some fraction of your time as your own. I use Tuesdays and Thursdays as my proactive days, when I try not to schedule meetings.‖ Jeff Bezos: ―I'm often encouraging people to go faster, even if it means a worse initial product. I want us to start learning. The cost of trying to avoid mistakes is huge in terms of speed.‖ Robert Miller (Federal-Mogul), on Turnarounds: (1) Tell the truth. Play it straight. (2) Make decisions. Don‘t study things to death. (3) Listen to your customers. They are usually more perceptive than you are about what needs to be done. Juergen Schrempp/DaimlerChrysler ―Digital decision making‖/ ―the danger of the deadly wish for harmony‖ Boss Talk/WSJ Provide a simple, clear, exciting & energizing focus. Obsess on TALENT. Speed > Perfection. (Clarity, motivation, rapid adjustment.) Leap > Line extension. (Beware ―me-too,‖ perfecting yesterday.) Tell the truth. Control your calendar. Get out of the office. Listen to customers face-to-face—at their place. 50. Leaders Know WHEN TO LEAVE! Thank You !
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