Tom Peters Seminar2001 We Are in a Brawl with No Rules! One Day/11.15.2001

Tom Peters Seminar2001

We Are in a Brawl with No

Rules!One Day/11.15.2001

“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

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

BMcC: (1) Hierarchy vs. “Network organization.” (2)

NWO = “Doctrine as center of gravity”/source of motivation;

distributed support & decision-making;largely self-organizing; “outside the military sphere.”

“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)

From: Weapon v. Weapon

To: Org structure v. Org structure

“Our military structure today is essentially one

developed and designed by Napoleon.”

Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

“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

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 1st 20 years > 1800s

2000: 10 years for paradigm shift

21st century: 1000X tech change than

20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it

represents a rupture in the fabric of human history”)

Ray Kurzweil

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

All Slides Available at …

tompeters.comNote: Lavender text in this file is a link.

TOPICS. BRAND INSIDE. Forces at Work I: The Destruction Imperative. Brand Org: Lean, Linked, Internet-driven, Virtual. Brand Work: The Professional Service Firm Model. The

Heart of the V.A. Revolution: PSF Unbound. Brand You: Distinct … or Extinct. Redefining

the Work Itself: The WOW Project. Brand Talent: The Great War for Talent. Brand

Talent+: The Education Fiasco. Summary: The High Standard Deviation Enterprise & The 5

Transformations

TOPICS. BRAND OUTSIDE. Forces at Work II: The Sameness Trap. Strategy 1A: Use E-

commerce to Re-invent Everything. Strategy 1B: Embracing an e-Led Age of Self-

determination. Strategy 2A: Women Rule. Strategy 2B: Welcome to “Old World.”

Strategy 3A: Design Matters. Strategy 3B: It’s the Experience. Strategy 4: Brand Power.

TOPICS. BRAND LEADERSHIP. The Leadership50: Leading in Totally Screwed-Up

Forces @ Work I

The Destruction Imperative!

Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by

20%; just 2 (2%), GE & Kodak, outperformed the market from 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

Message*: Are all CEOs bozos? Was Darwin a

genius, or what? So, Boss Man, whadda you say

about “risk taking” now?

*And “all that” (2 of 100; 12 of 500) was in relatively placid times.

CEOs appointed after

1985 are 3X more likely to be fired than CEOs appointed before 1985

Warren Bennis, MIT Sloan Management Review

“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

“A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in

older products. This results in a surge of productivity and performance that may take the old technology to unheard of

heights. But in most cases this is a sign of impending death.”

Jim Utterback, Mastering the Dynamics of Innovation

“The 1990s was a decade of multiple revolutions—political, economic, technological—that

changed so thoroughly the way we live that the past no longer seems a good guide to the future

(in fact the past seems precisely the wrong guide). So it is in the world of military affairs. The RMA is our opportunity to use the

new information technology to change the very nature of the military—in a way that could

reinvigorate American political, diplomatic and economic leadership in the world for decades to

come.” –Bill Owens, Lifting the Fog of War

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

The [New] Ge Way

DYB.com

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Brand Inside

Brand Org: Lean, Linked,

Internet-driven, Virtual

White Collar

Revolution!

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

The Pincer 5

1. “Destructive” entrepreneurs/ Global Competition

2. “White Collar Robots”

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

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

5. Speed!!

“A bureaucrat is an expensive

microchip.”Dan Sullivan, consultant and

executive coach

Automation+

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

IBM’s Project

eLiza!

“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

The Pincer 5

1. “Destructive” entrepreneurs/ Global Competition

2. “White Collar Robots”

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

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

5. Speed!!

“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.

Brand Inside

Brand Work: The Professional Service Firm

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.

“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%++)

BMW’s Designworks/USA:

>50% from outside work

eHR*/PCC***All HR on the Web

**Productivity Consulting Center

Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

(1) Translate departmental affairs 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!

Brand Inside

The Heart of the Value Creation Revolution:

PSF Unbound!

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersconsulting business!

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

price of entry.”

Ann Livermore, Hewlett-Packard

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Delphi … Etc. … Etc.

“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

GE’s Six Sigma+ Approach

Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s World.Source: Steve Kerr, VP, GE

“The primary strategic mission for [CEO Jeffrey] Immelt is to hasten GE’s transformation

from a low-margin manufacturer to a more lucrative services

company that sells solutions as much as stuff.”

Newsweek/09.10.2001 (Welch raised share of services revenue from 15% to 70%)

“In GE’s world there are fewer but bigger

customers, so there’s a

vital need to maximize the relationship.”

Newsweek/09.10.2001

“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)

New Springs = Turnkey

Collections.Flexible sourcing.

Packaging.Merchandising.

Promotion.Systems & Site mgt.

“We are a ‘real estate facilities consulting’

organization, not just an ‘interior design’ firm.”

Jean Bellas, founder, SPACE (from SMPS Marketer)

“ ‘Architecture’ is becoming a commodity.

Winners will be ‘Turnkey Facilities Management’

providers.”SMPS Exec

Omnicom: 57% (of $6B)

from marketing services

Problem: Everybody is going after the same space!

“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.

“The move toward outsourced manufacturing represents an obvious

opportunity for contract manufacturers [such

as Flextronics: $93M to $15B, ’93-’00], but it’s also a potential boon to product innovation. The

future of gadget-making is not about making gadgets; it’s about imagining them.

Someone else makes the imaginary real. ‘All that money that used to go to fund infrastructure is going into design and

innovation,’ says Flex CEO Michael Marks.”Wired/11.2001

Better Red than Dead?/Better Dead than Red?

“We will see more and more outsourcing of

discovery processes.”Craig Venter

Better Red than Dead?/Better Dead than Red?

“If we completely outsourced all of our genetic

analysis, we’d be held hostage by outside people.”

Brian Spear, Director of Pharmacogenomics, Abbott Labs

NC2001: Furniture company outsources all mfg. to

Asian firm. Asian firm gets financing, buys

NC company. Hmmm!!??

Brand Inside

Brand You:

Distinct … or

Extinct

“If there is nothing very special about your work, no matter how hard you apply

yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2001

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

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

Sam’s Secret #1!

Minimum New Work SurvivalSkillsKit2001

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

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

“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

Invent. Reinvent. Repeat.

Source: HP banner ad

Brand Inside

Redefining the Work

Itself: The WOW Project

“Reward excellent failures. Punish

mediocre successes.”Phil Daniels, Sydney exec

Language matters! Wow! BHAG! “Takes

your breath away!”

“Intimidate their [users] imaginations”

… “Where’s the revolution?” –J Allard,

on the Xbox

“Let’s make a dent in the universe.”

Steve Jobs

Brand Inside

WOW Projects for the “Powerless”:

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!

World’s Biggest Waste …

Selling “Up”

THE IDEA: Model F4

Find a Fellow

Freak Faraway

Heart of the Matter

F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.

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”

“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?

Reframers’ Rules:

Rule 1: Never accept an

assignment as given! (Please.)

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

Rule 3: Every “small” project contains the entire

enterprise DNA!

THE TOOL

Prototyping Mania!

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

Boss-free “Selling” of a WOW! Idea

Get a Zany [WOW!] Idea/Shop it with a coupla good pals.

Surface [using your network] a list of [operational] folks who might be interested in playing.

Call, visit and choose a coupla prospects.Engage the prospects [they must “own” “it”].

Concoct a rough plan and a prototype schedule. Move forward [Ready. Fire! Aim.].

Keep on recruitin’.Get the Test Customer to recruit some buddies for Round #2 tests [Meanwhile Customer #1 expands

program]

Get going with Round #2 prototypesStart conscious “buzz building” [Let “the word” of

successful tests trickle out]Have the “line dudes” put on a demo for, say, a coupla

“cool” regional bossesEtc.Etc.

Have the growing Network of Converts initiate a Major Program Proposal

Etc.Etc.

BOTTOM LINE

The Enemy!

Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

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

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

Sales2001

The Sales25: Great Salespeople …

1. Know the product. (Find cool mentors, and use them.)

2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

Great Salespeople …

8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)

12. Think “Turnkey.” (It’s always your problem!)

13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)

14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)

16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.

21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!

Brand Inside

Starting a Wow Projects

Epidemic: Demo mania! New Hall of Fame!

Premise: “Ordering” Systemic Change is a Stupid Waste

of Time!

L.B.I.W.D. (Leading

By Inducing Weird Demos)

The “Flypaper/Epidemic Strategy”: Trolling for would-be Revolutionary(ies). Age & rank & size of org do not matter/passion rules (Gap’s 27-yr-old; Rajat; OSHA Maine;

Anthem NH). (Hmmmm. Maybe size & rank do matter??) (“I won’t help you get promoted. I will help

you start a revolution/epidemic.”) Help the infected one(s) become “carriers;”

study epidemiology. MBSA.

MBSA!*

*Managing By Storying Around/David Armstrong

“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

that … he who has the best story

wins.”JQ Adams/A Hopkins to T Joadson/M Freeman

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley

Leaders aiming to change their world

… troll for & identify palpable heroes, who executed

palpable projects—then 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.)

Boss Advice I: The “Poster Kids”/ “End Run”/“Skunks” Strategy

Chat up a cross-section of the Org.Develop a tentative list of Pioneers/“Skunks.”

Hang with those Skunks, discover their “stuff I’ve long wanted to do”/Encourage

them to “Do it!”Begin to showcase their developing results

[with your public stamp of approval]. Dip deep[ish] and early - promote a Super

Skunk into the [New] Establishment.Incorporate the Skunks’ work into your Vision

Chatter/Welcome ALL aboard!

Boss Advice II: Starting the “Hmmmmm?” Buzz

“Event Marketing”: Idea Faire/Internal “Tradeshow”/Bragfest. Or: Seminar Series, with

“strange” outsiders/insiders (not the usual suspects); intense Web-based follow-up and community creation

(Neighborhoods of Common Interest).

“Play Fund,” around a topic of importance. Small-ish grants. Easy application process. Short-ish

timeframes. (Gerstner @ American Express re AI.)

“Scholarships” (not the usual suspects). Sabbatical funds (contest?). Placement on customer or supplier

project teams (not the usual suspects).

Each VP a V.C.: Portfolio of high-risk investments;

from all across the company; analog is

Wal*Mart exec merchandising.

Freaks need mentors/

guardians!

T.A.: 3

Goal of the Year No. 1*: Find-Develop-Mentor

ONE Extraordinary Person.

*CEO, large financial advisory firm, April 2001

Boss Advice III: The “Flypaper Strategy”

Don’t try to “change the culture”!

Do create flypaper which attracts Mavericks & Pirates!

Let the new culture (which is already lurking around you) find you!

Publicize, at the appropriate moment, the New Hall of Fame; help the New Culture Adherents create & nurture Community!

Brand Inside

Brand Talent: The Great War for Talent

“When land was the scarce resource, 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

Model 24/7: Sports Franchise GM

2. Greatness

Only The Best!

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)

3. Performance

Up or out!

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

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

more talented, higher paid managers in charge. He increased

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

Ed Michaels, War for Talent (05.17.00)

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

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)

What gets measured gets done. What gets

paid for gets done more. What gets paid

a lot for gets done a lot more.

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]

6. Diversity

Mess Rules!

“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

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

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

“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

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)

Okay, you think I’ve gone tooooo far.

How about this: DO ANY OF YOU SUFFER

FROM TOO MUCH TALENT?

63 of 2,500 top earners in F500

8% Big 5 partners

14% partners at top 250 law firms

43% new med students; 26% med

faculty; 7% deans

Source: Susan Estrich, Sex and Power

Encouraging signs: CEO, HP. CEO, eBay. CEO, Avon. CEO, Mirant.

CEO, Xerox. President, Pharmaceutical Group, Pfizer.

President, Chevron Products. Co-CEO, Kraft. President, PepsiCo.

CEO, Ogilvy & Mather. COO, Enron Americas. COO, Colgate-Palmolive.

President, Southwest Airlines.

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

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Enablement

Department

10. Leading Genius

We are all unique!

Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

48 Players = 48 Projects =

48 different success measures

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

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

Brand Inside

Brand Talent+: The Education Fiasco

Losing the War to

Bismarck

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding

refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ”Jordan Ayan, AHA!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND

GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out

of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:

Every school I visited was participating in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

J. D. Rockefeller’s General Education Board

(1906): “In our dreams people yield themselves with perfect docility to our

molding hands. … The task is simple. We will organize children and teach

them in a perfect way the things their fathers and mothers are doing in an imperfect way.”

John Taylor Gatto, A Different Kind of Teacher

An Unnatural Way to “Learn”

Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in

featureless rooms … sort children into rigid categories by the use of fantastic measures such as

age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving

them of private time and space …

Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to

discriminate qualities quantitatively … insist that every moment of time be filled with low-

level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their

active learning time to acquire.”

Doing Stuff that Matters!

“During the first years of life, youngsters all over

the world master a breathtaking array of

competences with little formal tutelage.”

Howard Gardner, The Unschooled Mind

The Learner’s Manifesto

The brain is always learning.Learning does not require coercion.

Learning must be meaningful.Learning is incidental.

Learning is collaborative.The consequences of worthwhile learning

are obvious.Learning always involves feelings.

Learning must be free of risk.

Frank Smith, Insult to Intelligence

Tom’s Edu3M

Manifesto**Manifesto for Education in the 3rd Millennium

Education3MLearning is a normal state.Children are learnavores.

Prodigious feats of learning are common as dirt. [Watch a H.S. QB studying game film.]

We learn at different rates.We learn in different ways.

Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.

Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.

There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real

world” standards.

Education3M

We learn most/fastest/most completely when we are passionate about what we are learning and it

matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/

Learning by Internship.Classrooms are abnormal places.

We need changes of pace. [Japanese recesses after each class.]

International test scores are not correlated with hours-per-year in class.

Big classes are slightly problematic. Big schools suck. Period.

Education3M

“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]

U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.

Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]

Teachers need enough space-time-flexibility to get to know kids as individuals.

Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

Education3M

Our toughest “learning achievement”—mastering our native language—does not

require schools, or even competent parents. [It does require a desperate need-to-know.]

Great teachers are great learners, not imparters-of-knowledge.

Great teachers ask great questions—that launch kids on lifelong quests.

The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly

sophisticated questions—just ask a ski instructor or neurosurgeon.

Education3M

Most schools spend most of their time setting up contexts in which kids learn not to like

particular subjects. [Evidence shows that such anti-learning sticks!]

Vigorous exploration is normal … until you are incarcerated in a school.

“Bite size” education-learning is neither education nor learning.

Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in

the hyper-structured classroom.

Education3M

The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the

wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail

to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.

Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”

Schools of “education” should by and large have their charters revoked.

Education3M

Stability is dead; “education” must therefore “educate” for an unknowable,

ambiguous, changing future; thence, learning to learn & change is far more

important than mastery of a static body of “facts.”

“Education” must “develop in youth the capabilities for engaging in intense concentrated

involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]

Brand InsideReprise:

THINK WEIRD: The High Standard

Deviation Enterprise

Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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)

Suppliers: There is an ominous downside to strategic supplier

relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need

not apply.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue

Employees

The Top Creators of Shareholder Value

Accept depressed earnings for several quarters to support hot productExpense rather than capitalize new venture costs

Bonuses without caps

Source: Fortune (09.17.201)

Message: TAKE SOMEONE

NEW & WEIRD TO LUNCH TODAY OR

TOMORROW. [Inundate yourself with weird.]

Brand Inside

NewGov2001

WE NEED …

IDEAS!

“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

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

BMcC: (1) Hierarchy vs. “Network organization.” (2)

NWO = “Doctrine as center of gravity”/source of motivation;

distributed support & decision-making;largely self-organizing; “outside the military sphere.”

“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)

From: Weapon v. Weapon

To: Org structure v. Org structure

Ideas > Leadership

NO: “Good gov’t”

YES: EFFECTIVE Gov’t (in altered/ambiguous

times)

A Plea for “virtual

[RESPONSIVE] government”

Agile.

WALLS MUST FALL!

“Our military is very good at doing things as they are supposed to be done, but it is not always good at changing the way things ought to be done. Highly

professional militaries can be very good at maintaining the institution’s traditions, mores and

cultures in the face of rapid and important change. … Equating professionalism with automatically defending the status quo can be disastrous.

This is the mindset that drives service loyalties toward narrow parochialism, and congeals organizations into brittle shells. We end up

ignoring opportunities that could actually offer higher military effectiveness.” –Bill Owens,

Lifting the Fog of War

The W.O.G. (Work-of-

Government): Insta/ Targeted

WPTs (WOW (B.H.A.G.)

Project Teams (with

clout) )

Experiments rule!

Failures rule!

Talent matters!

New Heroes/Hall of Fame

IS/IT to the Max!

Streamlined

procurement (esp. IS/IT)

P.S.: The CONSTITUTION matters! (Life, liberty & the pursuit of

happiness—and the Bill of Rights)

REPRESENTATIVE GOV’T matters. (Filter the worst of mass

sentiments—Hobbes rules)

Case: Bill Owens … Lifting the Fog

of War

“The 1990s was a decade of multiple revolutions—political, economic, technological—that

changed so thoroughly the way we live that the past no longer seems a good guide to the future (in fact the past seems precisely the wrong

guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the military—in a way that could

reinvigorate American political, diplomatic and economic leadership in the world for decades to

come.” –Bill Owens, Lifting the Fog of War

“Our military is very good at doing things as they are supposed to be done, but it is not always good at changing the way things ought to be done. Highly

professional militaries can be very good at maintaining the institution’s traditions, mores and

cultures in the face of rapid and important change. … Equating professionalism with automatically defending the status quo can be disastrous.

This is the mindset that drives service loyalties toward narrow parochialism, and congeals organizations into brittle shells. We end up

ignoring opportunities that could actually offer higher military effectiveness.” –Bill Owens,

“How dare you. If you don’t support us, our opponents will take

advantage and use this to cut the force.” –CNO staffer

[Flag officer] to Bill Owens, 6th Fleet Commander

“Mike [Boorda’s] self-avowed priority was to preserve and protect the size, budget and

structure of the U.S. Navy—his Navy—irrespective of any other consideration—

because he deeply believed that the Navy was the core of America’s military capability. My

view over the years had shifted toward the conviction that we in the Navy need to implement major changes in order to

become more joint—to work better and more closely with the other services.”

–Bill Owens, Lifting the Fog of War

“Many flaws remained—flaws not from poor performance, but from an ingrained command

hierarchy and an outmoded concept of war that had taken root during World War II and then during the cold war. Desert Storm was a joint

military operation in name rather than in fact. … The battlefield was divided among service components. …

The fiefdoms existed not only because of tradition, service rivalry and the egos of the commanders; they were also there because of technological limitations.

We did not have the communications capability to do it differently.” –Bill Owens, Lifting the Fog of War

“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

“By combining powerful computer technology and other

modern information-based systems we could make a

revitalized, leaner military force that is designed to outsee,

outmaneuver and outfight any foe.” --Bill Owens, Lifting the Fog of War

RMA: (1) Battlespace awareness. (2) C4I.

(Command, control, communications, computers &

intelligence.) (3) Precision force use.

“[The RMA] means creating a synergy in new weapons, sensors and communications that is made

possible by the successful melding of the technological

applications with an information-age military organization.” –Bill Owens,

Forces @ Work II

The Sameness 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

10X/10X

Brand Outside

Strategy 1A:Use E-Commerce to

Re-invent Everything!

Dell’s OptiPlex Facility

Big Job: 6 to 8 hours.(80,000 per day)

Parts Inventory: 100 square feet.

Cisco!

90% of $20B (=$50M/day)Annual savings in service

and support from customer self-management: $550M (P.S.: C.Sat e >> C.Sat h)

Secret Cisco: Community!

Customer Engineer Chat Rooms/Collaborative

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

customer collaboration)

Webcor. Construction. Web site for each project. Instant info on

status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage.

Source: Business Week (09.00)

Welcome to D.I.Y. Nation: “Changes in business processes will emphasize self service. Your costs as a business

go down and perceived service goes up because

customers are conducting it themselves.” Ray Lane, Oracle

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my universe!

WebWorld = Everything

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

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

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

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

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

as next door neighbor

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

relationship, partnership, organizational and

communications play, made possible by new

technologies.

Message: 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.”

Ray Lane, Kleiner Perkins

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

“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!

Case: CRM

UBIQUITY! “It’s the cars, not the tires, that squeal”:

NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McD’s, gas stations and parking lots

next. OnStar (GM/1.5M). Plus: “black boxes”, GPS (the case of

the $450 ticket), CA smog offenders.

“CRM has, almost universally, failed

to live up to expectations.”

--Butler Group (UK)

No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre-

electronic age when service was more personal.”

Rebuttal: (1) Service sucked in the “pre-electronic” age. (2) NewGen believes in the screen! (So do I.)

One Person’s Opinion

TP to reporter: “Service is MUCH better! Would you go back to bank tellers and phone

operators? Value that I place on a “smile”: 3 on a scale of 10. Value I place on fast & accurate “digital”

response: 11 on a scale of 10!!

M. Rogers: -5% defections = +25% to +85% profit. Lose

15% to 35% p.a. 69% defect as a result of lousy sales or

service experience. (Q:But is this the point???? A: Yes.

CGE&Y (Paul Cole): “Pleasant

Transaction” vs. “Systemic Opportunity.” “Better job

of what we do today” vs. “Re-think overall

enterprise strategy.”

“Customer Service” is DEAD.“One-to-One” is DEAD.

Welcome to: ????[??? = We live together in seamless-

responsive harmony with all Members of the Value Chain. We Create together. We Fulfill together. We Learn together. We

Adjust together. All old categories – which imply separation and linearity and

hierarchy and do-it-to-themism – must die.]

I’net …

before!

Message CRM: Madness = 600 CRM vendors. ???: “Do it all” or “do

something.” Past: over-invest in low-value customers. Idea: better experience, not off-load work to

customer. Relationship = f(dialogue & knowledge & duration). Key: new

attitudes, DESTRUCTION of functional barriers to info & action.

Brand Outside

Strategy 1B:Embracing an e-Led

Age of Self-Determination

“Parents, doctors, stockbrokers, even military leaders are starting to

lose the authority they once had. There are all these roles premised on access to privileged information. …

What we are witnessing is a collapse of that advantage,

prestige and authority.”Michael Lewis, next

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“The Age of the

Never Satisfied Customer”

Regis McKenna

Impact #1:

Healthcare

HealthCare2001

Consumerism X Demographics X

IS/Internet X Info Consolidators X Genetics & Devices

= YIKES!

1. Consumerism (Patient-centric Healthcare)

“A seismic shift is underway in healthcare. The Internet is

delivering vast knowledge and new choices to consumers—raising their

expectations and, in many cases, handing them the controls.

[Healthcare] consumers are driving radical, fundamental change.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

Today’s Healthcare “Consumer”:

“skeptical and demanding”

Source: Ian Morrison, Healthcare in the New Millennium

Consumer Imperatives

ChoiceControl (Self-care, Self-management)

Shared Medical Decision-makingCustomer Service

InformationBranding

Source: Institute for the Future

“Self-medication is the wave of the future, whether the [pharmaceutical] industry

likes it or not.”

Wall Street Journal (5-23)

DTC > Professionals

ClaritinPravachol

ZybanEvista

PropeciaPrilosecPrimera

Source: JAMA

“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention. Info availability (disease, health, docs,

support groups, outcomes). Self-care (chronic disease). High expectations (genetics, etc.) Boomers (see below). …

“He shook me up. He put his hand on my shoulder, and simply said,

‘Old friend, you have got to take charge of your own

medical care.’ ”Hamilton Jordan, No Such Thing as a Bad Day (on a conversation with a doctor pal, following

Jordan’s cancer diagnosis)

“Savior for the Sick”

“Partner for Good Health”

Source: NPR/VPR 08.15.00

“The ‘curative model’ narrowly focuses on the goal of cure. …

From many quarters comes evidence that the view of health

should be expanded to encompass mental, social and

spiritual well-being.” Institute for the Future

“What’s needed are comprehensive strategies that leverage the latest

technology and provide the services that eHealth consumers are demanding,

including convenience and customized services such as online physician

interaction or online management of health benefits and customized disease

management programs.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

Make time for your most important

asset. Your health.

Ad for Mayo Clinic Executive Health Program/Jacksonville, Orlando Airport

Message: Patients aren’t.

Consumers [will] rule.

2. Demographics: The BOOMERS Reach 55!

Boomer World

“From jogging to plastic surgery, from vegetarian diets

to Viagra, they are fighting to preserve their youth and

defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the

Information Revolution and Branding”

Message Boomer: (1) “There are

l-o-t-s of us.” (2) “We have

the $$$$$$. (3) “We’re/I’m in charge!” (4) “We’ll take no

guff from anyone.” (5) “We

know the emperor has no clothes.”

3. The IS/Web REVOLUTION

“We’re in the Internet age, and the average

patient can’t email their doctor.”

Donald Berwick, Harvard Med School

Henry Lowe, U. of Pitt. School of

Medicine: “Broadband, Internet-based,

‘multimedia’ electronic medical

records”

“Without being disrespectful, I consider the U.S. healthcare

delivery system the largest cottage industry in the world. There are

virtually no performance measurements and no

standards. Trying to measure performance … is the next revolution in healthcare.”

Richard Huber, former CEO, Aetna

“As unsettling as the prevalence of inappropriate care is the enormous amount of

what can only be called ignorant care. A surprising 85% of everyday medical

treatments have never been scientifically validated. … For instance, when family

practitioners in Washington were queried about treating a simple urinary tract infection, 82

physicians came up with an extraordinary 137 strategies.”

Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“In health care,

geography is destiny.”

Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age,

Michael Millenson

“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural

consequence of a system that systematically tracks neither its processes nor its outcomes,

preferring to presume that good facilities, good intentions and good training lead automatically

to good results. Providers remain more comfortable with the habits of a guild, where

each craftsman trusts his fellows, than with the demands of the information age.”

Michael Millenson, Demanding Medical Excellence

CDC 1998: 90,000 killed and 2,000,000 injured

from nosocomial [hospital-caused] drug

errors & infections

“Quality of care is the problem, not managed care.”

Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)

RAND(1998): 50%, appropriate preventive care. 60%,

recommended treatment, per medical studies, for chronic

conditions. 20%, chronic care treatment that is wrong.

30% acute care treatment that is wrong.

“In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to calculate medication doses. Eight

out of 10 made calculation mistakes at least 10% of the time,

while four out of 10 made mistakes 30 % of the time.”

Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“Tufts Health to issue doctor

‘report cards’ ”

–Boston Globe 10.25.2001

“Patient by patient, problem by problem—drug reactions, hospital

caused infections—Salt Lake City’s LDS Hospital has attacked treatment-

caused injuries and deaths. One of the secrets of LDS’s success is a custom-

built clinical computer system that may serve as a national model for how

to save patient lives.”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

4. Information Consolidators: The Network Maestros

“America has twice as many hospitals and physicians as

it needs.”Med Inc., Sandy Lutz, Woodrin Grossman

& John Bigalke

“The future of hospitals is murky. A combination of technological advances,

managed care, and changes in Medicare reimbursement policy

means that the underlying demand for inpatient services

will continue to fall.”Institute for the Future

“Virtual health care webs force providers to focus on their areas of excellence and to

invest in areas where they can generate a sustainable

competitive advantage.”

Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide

WebMD (or heirs

& assigns)

Message: Somebody is

gonna get this right!

5. Genetics & Devices

“Recognizing that a single misspelled gene means the difference

between being poisoned and being cured was the

first victory for the new science of pharmacogenetics.”

Newsweek (06.25.01)

“Pharmacogenomics could

fundamentally change the nature of drug discovery and marketing,

rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and

money to craft a single medicine with mass-market appeal.”

The Industry Standard (05.28.01)

“BIG DRUG MAKERS TRY TO POSTPONE

CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are

prescribed, and experts believe genetic differences are part of the reason. The

technology for genetic testing is now in use. But the technique threatens to be so disruptive to the

business of big drug companies – it could limit the market for some of their blockbuster

products – that many of them are resisting its widespread use.”

The Wall Street Journal (06.18.2001)

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)

Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-

guided munitions, and it marks a sea change for the industry. The implications for existing

business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline:

“minibuster.” Rob Arnold, Euro head of life sciences, PWC: “Once you start dealing with minority

treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make

money could be at a real advantage.”

“Will biotechs be any better at [the new varieties of] drug discovery than Big Pharma? In the

aggregate … they will be. There is nothing the small companies are doing that the large cannot. [But] research programs at big

companies can meander for years. ‘It’s much more Darwinian in biotech,’ says [Triangle

Pharmaceuticals founder and former head of R & D at Burroughs Wellcome] David Barry.

‘Investors tend to be much more demanding in their expectations than any internal review

organizations in large companies.’ ”

Fortune/07.23.01

“There is no question in my mind that the future of heart

surgery is in robotics.”

Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-

bypass surgery

“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the

operating table. That day may come sooner than you think.”

Newsweek (06.25.01)

Message pharacogenomics:

(1) There is a drug revolution

coming. Pretty damn fast. (2) My

bet: Most Big Pharma will get run over!

Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 70M uninsured. 90K killed and 2M injured p.a. in hospitals. 85% treatments

unproven. Cure depends on locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybody’s mad and feels powerless:

docs, patients, nurses, insurers, employers, hospital administrators

and staff.

Message I: Embrace R & R

[radical and rapid] Change … or Become History’s

Footnote

Message II: (1) An unparalleled

time for imagination and bold action. (2) A time of

unprecedented

opportunities. (3) A time

of unprecedented risk.

Brand Outside

Strategy 2A:

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

2/3rds working women/50+% working wives > 50%

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

$4.8T > Japan

9M/27.5M/$3.6T > Germany

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*[* No shit!]

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

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

way, don’t buy for the same reasons.”

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

they make connections.”

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

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

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

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

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

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

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness

tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned

sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s

friends, hopes, dreams, romances, secret fears, what they are

thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes

to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,

but can never find things in fridges, cupboards or drawers.”

“Female hearing advantage contributes significantly to what is

called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.

They are excellent at imitating animal sounds.”

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

brands. They join them.”

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

“Year of the Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/Promoting

Structure Processes

MeasurementStrategyCulture 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?”

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 Alto resident … 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

Stupid!

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)

The Furniture Industry …

doesn’t understand BRANDINGdoesn’t understand FASHIONdoesn’t understand WOMENdoesn’t understand SPEED & RESPONSIVENESS & VALUE-ADDED SERVICESdoesn’t understand EXCITING RETAIL PRESENTATION & “EXPERIENCE” MARKETING.

And is run by old, conservative white guys … who don’t even understand what they don’t understand.

Prescription …

SHE is the Consumer. (PERIOD.)

SHE is the Brand. (PERIOD.)

75% women designers* (*Men CANNOT design for women. PERIOD.)

75% women reps.“Cool” retail spaces in high-rent districts

(à la Ethan Allen).

Match furniture with accessories … i.e., create an “experience.”

FOCUS ON “RELATIONSHIPS-FOR-LIFE”, not “transactions.”

Brand Outside

Strategy 2B:

Welcome to “Old World”!

“ ‘Age Power’ will rule the 21st century, and we are woefully

unprepared.”Ken Dychtwald, Age Power: How the 21st

Century Will Be Ruled by the New Old

Subject: Marketers & Stupidity

“It’s 18-44, stupid!”

Subject: Marketers & Stupidity

Or is it: “18-44 is stupid,

stupid!”

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

“NOT ACTING THEIR AGE: As Baby Boomers

Zoom into Retirement, Will America Ever Be the

Same?”USN&WR Cover/06.01

Member Growth: 1987 – 1997

18 – 34: 26%35 – 49: 63%

50+: 118%Source: IHRSA

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

$7T wealth (70%)/$2T annual income50% all discretionary spending

79% own homes/40M credit card users41% new cars/48% luxury

$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

Stupid!

Brand Outside

Strategy 2C:

Welcome to “Green World”!

And #3: GREEN?????: 50% to 36%: 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”

Brand Outside

Strategy 3A:

Design Matters!

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

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

Design Transforms even the [Biggest] Corporations!

TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”

(Advertising Age)

All Equal Except …

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

technology, price, performance and

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

marketplace.”Norio Ohga

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

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

meaning of design. Design is the fundamental soul

of a man-made creation.”Steve Jobs

Design “is” … WHAT & WHY I LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I

GET MAD. MAD.

Wanted: THE DESIGNER OF MY

RADIO SHACK PHONE. Major

Reward!

Design is never neutral.

Hypothesis: DESIGN is the principal difference

between love and hate!

THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what

I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has

become a professional obsession. I – SIMPLY – BELIEVE THAT DESIGN PER SE IS

THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A

PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of

whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” …

that damn few companies put – consistently – on the front burner.

Message: Men cannot design for women’s needs.

Period.

Philippe Starck

“Today the problem is not how to produce more to sell more.

The fundamental question is that of the product’s right to exist. And it is the designer’s right and duty to question the

legitimacy of the product.”

Philippe Starck

“My main task when I was artistic director at Thompson for four years: to make the company virtuous. Not because there was a desire to do evil, but because they had simply forgotten their

purpose in life—to be of service.”

Philippe Starck

“I invented the slogan ‘Thompson: From Technology to Love.’ That completely

repositioned the problem. Because now we were saying that technology wasn’t an end in itself, but just a means—and

that the real goal was what had always been there, the original priority,

humanity, whose ultimate criterion is love. That connects back to the idea of the

friendly object, the good object.”

Philippe Starck

“[At Thompson] I outlawed the word ‘consumer’ in all company meetings, and insisted it be

replaced by the words ‘my friend,’ ‘my wife, ‘my daughter,’ ‘my mother,’ or ‘myself.’ It doesn’t sound the same at all, if you say: ‘It doesn’t

matter, it’s shit, but the consumers will make do with it,’ or if you start over again and say, ‘It’s

shit, but it doesn’t matter, my daughter will make do with it.’ All of a sudden, you can’t get away

with it anymore. There is an enormous task to be done with this kind of symbolic repositioning.”

Philippe Starck

“Today, 80 per cent of objects are

unnecessarily macho. Yet it is plain: The intelligence of a truly

modern society must be feminine. … Apart from a machine pistol, I can’t think of many objects

which actually need to be extravagantly masculine.”

Philippe Starck

Brand Outside

Strategy 3B:

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

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

1990: Party @ Chuck E. Cheese (experience economy) $100.00

Message:

“Experience” is the

“Last 80%”

P.S.: “Experience” applies to all work!

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): $10.001990: Party @ Chuck E. Cheese

(experience economy) $100.00

Bob Lutz: (1) “I see us as being in the art business. Art,

entertainment and mobile sculpture, which, coincidentally,

also happens to provide transportation.” (2) Focus groups

can be misleading. (“What did you like about that movie

you just saw? Was there enough violence? Was the car chase long

enough?”) (3) Design must be Priority No. 1.

Source: NYT 10.19.01

Brand Outside

Strategy 4:

BRAND POWER!

“WHO ARE YOU [these days] ?”

TP to Client

“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

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

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

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

that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25

words.) (2) List three ways in which we are UNIQUE … to our Clients.

(3) Who are THEY (competitors)? (ID, 25 words.)

(4) List 3 distinct “us”/”them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:

Try ’em on a skeptical Client!

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: See the next slide.)

Source: Jump Start Your Business Brain, Doug Hall

2 Questions

“How likely are you to purchase this new product or service?” (95%

to 100% weighting by execs)

“How unique is this new product or service?” (0% to 5%*)

*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

Message: “Branding” is B.S. long-term if the product is not

supercalifragilisticexpealidocious (e.g., see sections on Design &

Experience above)

The Heart of Branding …

“WHO ARE WE?”

WHAT’S OUR

STORY?

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

“ WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DIFFERENCE TO THE CLIENT ”

The Leadership50

Leading in Totally Screwed

Up Times

The Leadership50

1. Leaders Cede Control.

“I don’t know.”

1A. Leaders Try … Not to Screw

Things Up

“Ninety percent of what we call ‘management’ consists

of actions that make it difficult for people to get

things done.” – P.D. “My goal is not to ‘motivate them.’ It’s to not de-motivate ’em.” – N.D. f’ball coach

1B. Leadership Is a

… Mutual Discovery Process.

I am inalterably opposed to “organization change,”

“empowerment,” “motivation.” The goal: to awaken the latent talent

already within, by providing opportunities worthy of the

individual’s investment of her or his most precious resources …

time and emotional commitment.

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!

2. Great Leaders on Snorting

Steeds Are Important – but

Great Managers/Talent Developers (Type I

Leadership) are the Bedrock of Organizations that Perform Over

the Long Haul.

Whoops: Jack didn’t have a vision!

25/8/53

2A. “Just One”: Great Leading = Great

Mentoring.

T.A.: 3

Goal of the Year No. 1*: Find-Develop-Mentor

ONE Extraordinary Person.

*CEO, large financial advisory firm, April 2001

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].”

Fortune (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

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.

Project Team Golden Triangle

(1) Champion-Maniac. (2) Implementer-Pol. (3)

Schedule & Budgets Fanatic.

5. Leadership Mantra

#1: IT ALL DEPENDS!

Renaissance Men are … a snare, a

myth, a delusion!

6. 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.

7. Leaders LOVE the

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

7A. Leadership

Is Improv!

Duct Tape Rules!

“Andrew Higgins, who built landing craft in WWII, refused to hire graduates of

engineering schools. He believed that they only teach you what you can’t do in engineering

school. He started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D.

Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ”

Stephen Ambrose/Fast Company

7B. Leaders Groove on

AMBIGUITY!

“Most of our predictions are based

on very linear thinking. That’s why they will

most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01

8. 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!)

[ ISOE #1: A Bias for Action]

8A. 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)

8B. 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

Axiom: Never trust a “boss” with

no toys in his/her office!

9. BUT … Leaders

Know When to Wait.

Tex Schramm: The “too hard”

Axioms: (1) Pick your battles carefully. (2) Sometimes inaction

promotes sorting out & preserves options.

10. Leaders

DELIVER!

10A. Leaders

KNOW They Can Make a Difference!

“Leaders don’t

‘want to’ win.

Leaders ‘need to’ win.”

10B. Leaders Are

Optimists.

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

11. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

The “Gus Imperative”!

12. Leaders

FOCUS!

“To Don’t ” List

Leaders “dump the ones who brung ’em” —Nokia, HP, 3M,

PerkinElmer, Corning, Enron, etc.

Cortez!

13. Leaders Trust in

TRUST!

Credibility!

13A. Leaders Infuse the Dreaded-All Important “Evaluation Process”

with CREDIBILITY!

25 = 100

Talent-minded leaders: (1) treat the evaluation process strategically; (2) invest enormous amounts of

personal time in it (to give it credibility & amass data); (3)

depend on dialogue & “plain English,” not obscure,

standardized “instruments.”

14. 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

14B. Leaders

Wire the Joint!

Winners wire. Losers are

slaves to rank.

“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

14C. Leaders Are

Natural EMPOWERMENT

FREAKS!

15. 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: Link [rather than rank] workers; favor interactive-collaborative

leadership style [empowerment > top-down decision making]; sustain fruitful collaborations;

comfortable with sharing information; see redistribution of power as victory, not surrender;

favor multi-dimensional feedback; value interpersonal & technical skills, group &

individual 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

“Boys are trained in a way that will make

them irrelevant.”Phil Slater

15A. Oh Yeah … and Women Buy All the Stuff

$4.8T > Japan

9M/27.5M/$3.6T > Germany

16. Leaders LOVE RAINBOWS – for Pragmatic Reasons.

“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

16A. Leaders Pursue

Poets!

Gardner’s MI7: Logical-mathematical, Linguistic,

Spatial, Musical, Bodily-kinesthetic,

Interpersonal, Intrapersonal.

“Expose yourself to the best things humans have

done, and then try to bring those things into

what you’re doing.”Steve Jobs

17. Leaders FORGET!/

Leaders DESTROY!

“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

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

The [New] Ge Way

DYB.com

“The Word(s)” on Vitality: Gary Hamel

“Sell By” [jettison old crap]

Spin Out [support entrepreneurs]

Spin In [buy young firms]

18. 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)

19. Leaders …

HONOR THE USURPERS.

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost

Customers, and Rogue Employees

20. Leaders

HANG OUT WITH

FREAKS!

Message: TAKE

SOMEONE NEW & WEIRD TO LUNCH

TODAY OR TOMORROW. [Inundate yourself with weird.]

21. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

Sam’s

Secret #1!

“Fail faster. Succeed sooner.”

David Kelley/IDEO

22. Leaders Make BIG MISTAKES!

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

“Learn not to be careful.”

Photographer Diane Arbus, to her students

22A. 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 Edmonson & 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!

23. Leaders Set DESIGN SPECS.

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!

23A. 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?”

24. Leaders Know When to

CHALLENGE (BURN) Design Specs!

“The ‘chump-to-champ-to-chump

cycle’ used to be three generations. Now it’s

about five years.”Bill McGowan

25. Leaders Know that

THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW

MARKETS.

No one ever made it into the Business Hall of Fame on a record of

“line extensions.”

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

The Top Creators of Shareholder Value

Accept depressed earnings for several quarters to support hot productExpense rather than capitalize new venture costs

Bonuses without caps

Source: Fortune (09.17.201)

26. 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

26A. Leaders Make Their Mark / Leaders

Do Stuff That Matters

“Today the problem is not how to produce more to sell more.

The fundamental question is that of the product’s right to exist. And it is the designer’s right and duty to question the

legitimacy of the product.”

Philippe Starck

“My main task when I was artistic director at Thompson for four years: to make the company virtuous. Not because there was a desire to do evil, but because they had simply forgotten their

purpose in life—to be of service.”

Philippe Starck

27. Leaders Push Their

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

28. Leaders

LOVE the New Technology!

I’net …

before!

100 square feet

28A. 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

29. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

30. Leaders Don’t Create “Followers”:

THEY CREATE LEADERS!

Brand You, Big Time!

I AM AN ARMY OF

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.”

PJ: “Coaching 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 Know “It’s My Fault.”

You recruited ’em.You hired ’em.

You trained ’em. You evaluated ’em.

You “motivated” ’em.

33A. Leaders Don’t Scapegoat /

Allow Scapegoating.

34. Leaders have MENTORS.

The Gospel According to TP: Upon 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.)

35. Leaders Out

PASSION!

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

“Let’s make a dent in the universe.”

Steve Jobs

36. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

BZ: “I am a … DISPENSER

OF ENTHUSIASM!

36A. Leaders Know that

“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!

37. Leaders Know It’s ALL SALES ALL THE

Sales2001

TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”)

38. Leaders

LOVE “POLITICS.”

TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

you’re a “leader.”)

38A. But … Leaders Also

Break a Lot of China

If you’re not pissing people off, you’re not making

a difference!

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

bishop or a college president. He was seriously interested in who you were and what you had to say.”

Sara Lawrence-Lightfoot, Respect

40. Leaders

LISTEN!

See Stephen! (Empathetic Listening)

40A. Leaders Say

“Thank You.”

“The deepest human need is the

need to be appreciated.”

William James

“The two most powerful things I know

in existence: a kind word and a

thoughtful gesture.”Ken Langone, CEO, Invemed Associates [from

Ronna Lichtenberg, It’s Not Business, It’s Personal]

41. Leaders …

SHOW UP!

“Leaders are living individuals whom

employees smell, feel, touch their presence.”

“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

P.S. …

Mark McCormack: 5,000 miles for a 5

min. meeting.

42. Leadership Is a Performance.

BELIEVE IT.

“You must be the change you

wish to see in the world.”

--M.G.

“It is necessary for the President to be the

nation’s No. 1 actor.”FDR

43. Leaders Have

a GREAT STORY!

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

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“Early in my career in the law I learned

that … he who has the best story

wins.”JQ Adams/A Hopkins to T Joadson/M Freeman

“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

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley

44. Leaders Seed & Pursue &

Recognize (Weird) “Demos.”

44A. Leaders

Create BUZZ!

L.B.I.W.D. (Leading

By Inducing Weird Demos)

Leaders aimed on changing their

world identify palpable 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.)

45. Leaders Focus on the

SOFT STUFF!

“Soft” Is “Hard”

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.]

“ ‘Goodbye,’ said the fox. ‘Now here is

my secret, a very simple secret: It is only with the heart that one can see rightly; what is essential is

invisible to the eye.’ ‘What is essential is invisible to the eye,’ the

little prince repeated, so that he would be sure to remember.”

Antoine de Saint-Exupery, The Little Prince

46. Leaders …

SERVE.

Robert Greenleaf: Servant Leadership

47. 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.)

47A. Leaders

LAUGH!

48. Leaders Are

Graceful.

“My favorite word is grace –

whether it’s amazing grace,

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

GRACE. An evening sunset in Vermont in October. A vase with one rose on the dining room table. A smile,

any smile. A smile from a loved one when you do something really stupid. A hand from a stranger,

when you slip. A colleague who goes the extra mile (or inch) and doesn’t call attention to it. A “little”

“thank you” for something you didn’t think the other person had noticed. Any sunrise. A comfy couch. Comfy sweats. A faithful dog’s slobbery greeting

when you get home, at 2a.m., from a 4-day bus trip. Home. A unique pattern of ice crystals on the window

on a frigid morning. A warm, half-hour bath. The silence of the forest. The first cherry blossoms in

California in February, or D.C. in April. Paris.

Leaders ???:

“LEADERS NEED TO BE THE ROCK OF

GIBRALTAR ONROLLER BLADES”

“Hire smart – go bonkers – have grace – make mistakes – love technology – start all

over again.”

“ ‘It’s only business, not personal’ … IT

ALWAYS IS PERSONAL.”

“Leadership is the PROCESS of

ENGAGING PEOPLE in CREATING a LEGACY

of EXCELLENCE.”

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.

Juergen Schrempp/DaimlerChrysler

“Digital decision making”/ “the danger of the deadly

wish for harmony”

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.”

50. Leaders Know

WHEN TO LEAVE!

Thank You!

Tom Peters Seminar2001 We Are in a Brawl with No Rules! One Day/11.15.2001

Documents

Tom Peters Seminar2001 Rollercoaster Days: Learning to … Rock & Roll! Portland/6.21.2001

Tom Peters Seminar2002 We Are in a Brawl with No Rules Mumbai/31October2002

Tom Peters’ Seminar2002 We Are In A Brawl With No Rules! gsk/04.02.2002

Tom Peters Seminar2001 THINK “WEIRD”: The High Standard Deviation Enterprise Version 02.06.01

Tom Peters Seminar2001 Rollercoaster Days: Learning to … Rock & Roll! Boise 06.08.01

Tom Peters’ 2002 We Are In A Brawl With No Rules! Farmers /01.11.2002

Tom Peters’ 2002 We Are In A Brawl With No Rules! MASTER /02.20.2002

Tom Peters Seminar2001 We Are in a Brawl with No Rules! Norfolk/09.18.2001

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES

Tom Peters Seminar2001 Rollercoaster Days: Learning to … Rock & Roll! Denver 06.06.01

Tom Peters’ We Are in a Brawl with No Rules! Philadelphia/11December2001

Tom Peters Seminar2002 We Are in a Brawl with No Rules Delhi/29October2002

Tom Peters Seminar2001 We Are in a Brawl with No Rules! Pittsburgh/09.20.2001

Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001

Tom Peters’ 2002 We Are In A Brawl With No Rules! MASTER/02.20.2002

Tom Peters Seminar2001 Rollercoaster Days: Learning to … Rock & Roll! 06.19.2001

Tom Peters Seminar2001 We Are in a Brawl with No Rules! SOCAP /New Orleans/10.29.2001

Tom Peters’ Seminar2002 We Are In A Brawl With No Rules! Atlanta/05.07.2002

Tom Peters’ We Are in a Brawl with No Rules NMFN/Chicago/01.25.2003

Tom Peters’ 2002 We Are In A Brawl With No Rules! Detroit/02.07.2002