Tom Peters’ Y2K Lessons in Leadership Baltimore 02-25-00

Tom Peters’ Y2KLessons in Leadership

Baltimore02-25-00

Hen scratches @ 37,000 feet …

Microsoft = R.O.W.

Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99

Microsoft = R.O.W. (II) Microsoft > GM + Ford Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg

+ McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker OatsSource: Yastrow Marketing (through 11-23-99)

No Wiggle Room!

“Incrementalism is innovation’s worst

enemy.” Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of the

Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

“It means nothing less than the total

reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPointFord + iVillage,Yahoo!

Ford + OracleFord + HP, MCI Worldcom

Etc.Etc.

Tony(White)-WorldPerkin-Elmer to PE Corp./

Sell “core bus.”/ Dump NAME!

Now: PE Biosystems, Celera Genomics (Craig Venter)

$1.5B (’95) to $24B

64/24

Goal?

“There is probably going to be more confusion in

the business world in the next decade than there has been in any decade

in history.”Steve Case (2-00)

“Medicine looks likely to change more in the next 20 years than it has in the last

200.”

British Medical Journal (11-11-99)

???????????????????

Warner Lambert&

Pfizer

“We are in a brawl with no rules!” Paul Allaire

S.A.V.

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

“T.T.D.” activities. I.e.: Things To Do. These are by and large shorthand forms of training exercises I use.

Also: Most of these T.T.D. slides have accompanying Notes.(See following slide.)

Tom Peters

T.T.D./True or False:

“incrementalism”

VERSUS“innovation”?

Notes Page• This is a daunting issue. There is no “right

answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention. Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!

Seminar Y2K

Brand Everything:Distinct or Extinct!

Part I: Forces @ WorkPart II: Brand Inside

Part III: Brand OutsidePart IV: Brand Leadership

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take up innovations will assist in the rise

and rise of the brand.”Gillian Law and Nick Grant, Management [New Zealand]

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

Forces @ Work

The Destruction Imperative!

Forget > Learn“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

Q: What do you do when you are a big,

dopey company and out of ideas?

A: You merge with another big,

dopey company that doesn’t

have any ideas either.

R: An incredibly big, incredibly dopey company

… going nowhere.

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

expectations, Leon Cooperman, former cochairman of Goldman

Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I

draw a blank.’ ”

Mark Sirower, The Synergy Trap

“I feel betrayed. I bought stock in a company that was going to change the world. I didn’t buy a big, fat, stupid conglomerate. And now

I’ve got one.”Alan Towers, consultant, quoted in Business Week

[BW: “The irony is that AOL Time Warner is a vertically integrated conglomerate. Not exactly the sort of nimble

competitor that will thrive in cyberspace.”]

“Talent” and a $2T enterprise??????

“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property.” Art Reidel, CEO, Pharsight

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco

Dept. Head I = Sports G.M.

Dept. Head II = V.C.

G.M. = The Recruitment and Development of Top Talent.

[Period!]

V.C. = Bets on “Talent.” Bets on Projects. [Period!]

Silicon Valley Success Secrets

“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6

do okay; 3 do well; 1 hits the jackpot

Source: The Economist

“R & D”

Intel’s venture fund: 275 investments, $3.5B

Source: Fast Company (12-99)

T.T.D.What are the specifics of

your [personal, unit] “Forgetting Strategy”?

Notes Page

• Discuss the idea of “learning” versus “forgetting.” I THINK THIS IS A LOT MORE THAN A “SEMANTICS DEBATE.” Assuming you agree with me, what – very specific – steps are you taking to move beyond the Assumptions du Jour? Hint: This holds for a 1999 dot.com startup as much as for an elderly company.

T.T.D.Discuss the G.M./V.C.

“strategy” as it applies to your unit.

Notes Page

• What do “G.M.s” do? [Invite one to talk to your group.] Do you do what they do? If not, why not? How about a “G.M. Strategy”?

• Repeat the above for the Life of a Venture Capitalist.

T.T.D.Evaluate your portfolio of projects [and people]: Are

you placing enough interesting [long shot?]

bets?

Notes Page

• Be brutally honest! Hint: This holds for you and me as individuals as well as for our unit.

C.E.O. to

C.D.O.

“It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional

Venture Partners)

[E.g.: Craig Venter/Celera Genomics]

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

“ALL OF THESE ‘CONVERSATIONS’ TODAY ABOUT ‘THE WEB’ WILL APPEAR SO BLOODY DAMN SILLY AND PEDESTRIAN TEN … FIVE? … THREE? … YEARS FROM NOW.”

— Tom Peters (11-99)

P.S.: Read Ray Kurzweil’s The Age of Spiritual Machines: When Computers Exceed Human Intelligence

BW: “human brain has only a short time left as the smartest thing on earth”/ “subjugate

humanity by 2050”

Health Forum Journal: “In one generation or less, every element of health care, every assumption, will be changed or gone.”

Dr. George Poste, SKB: 500 molecular targets in ’95 to 70,000 in ’99/ 35 compounds

per year to 2M

Wired [Feb 2000]

“Cyborg 1.0: Kevin Warwick Outlines His Plan

to Become One with His Computer”

T.T.D.

How do you rate as a …

C.D.O.?

Notes Page

• So … what … exactly … are you doing to DESTROY what you [and yours] are today? List every Project that aims to ATTACK today’s “culture” and assumptions. Be specific!

Message from Seattle?

Top 3 Americans > 48 poorest nations

Source: Newsweek 12-99

[Visit India … every 24 months.]

Brand Inside

PSF 1:Brand Org!

108 X 5vs.

8 X 1*

* 540 vs. 8

ERP, ECM, Web, Etc.

IT’S THE GIANT SUCKING SOUND

OF SLACK BEING EXTRACTED FROM

THE GLOBAL ECONOMY!

“The coefficient of friction associated with the grunge

of business is amazing!”

Michael Schrage

Cemex and FDX!

CCC InformationServices!

Swissair

e>bookinge>ticket

e>check-ine>tracke>info

T.T.D.

Discuss: Is my “90% in 10+ years” extreme?

Notes Page

• I admit that some say I’m over-the-top here. I honestly don’t think I am. Try and imagine your HR/Whatever Dept. fully automated with numerous tasks outsourced … to India or Ireland.

“Assetless Company”

J.B.

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

F.G.

And …

50M @ $20,000 = $1T*

*Michael Dertouzos, MIT, on India’s “back office” outsourcing potential

[02-08-00/Delhi]

RR on Sara Lee“The most profitable

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

with insights into the customer’s individual needs

and preferences.”

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon

* ’twixt docs, patients and providers; $250B in waste (?); source: Michael Lewis,

The New New Thing

Hill Physicians Medical Group/2,500 California docs

WAS: 200,000 claims per month34 employees doing 150 per day

NOW: Healtheon/WebMD portal processes 3,500 claims in

45 minutes; 1/3 of claims via Healtheon/WebMd now [after 1 year];

60% by year’s end

[ Incidentally …

CEO Jeff ArnoldAge: 30

First Start-up: Age 24]

SoftWatch (MS)“Manage relationships across the healthcare

continuum”/ Amir KishonEstablish e-relationships with customers/retain

customers/collect dataPatients record info + receive feedback/ Online

access to nursesCommunity with others with MS

Etc.Source: Start-Up

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

[ And: Enron! Dynergy! Etc.]

T.T.D.Does your vision involve a critical position in the

industry’s Spider’s Web?

Notes Page

• Try to depict your industry … or your department … with all its interconnections. E.g.: What if every task you perform became a “for profit” task in which you became an “industry expert”? E.g.: As an HR Dept. in the utility industry, what if you started the premier dot.com industry Talent Bank?

PSF 1.0

Professional Service Firm Conversion Kit /

Release 1.0

PSF 1.0

Department Head

to …

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

Why are there no books on how to create

a “Cool, Rocking, WOW-producing

Finance Department”?

Credo

“WORK WORTH

PAYING FOR”

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

drag”or …

“Rock Stars of the ‘Age of Talent’ ”

“Real” PSF …– Think Inc. (Mindset = Step No.1!)– Clients rule! / Engage Clients in deep

dialog / “Join us in an Adventure” / Fire duds!

– Work = WOW Projects (100%!)– Embrace the Politics of Implementation!– Practice serial monogamy! – Master “the economics”! (WWPF!)

“Real” PSF …–WE HELP PEOPLE!–Co-habit with the Client!–Create a Culture of Urgency!–Love thy Support Staff!–You need a Methodology! / Obsess on R&D!–BECOME A “CONNOISSEUR

OF TALENT”!

Real PSF …

WE OWN THIS PLACE!THIS IS COOL STUFF!WE ARE THE WORLD!

The “7Ps” of PSF 1.0

Projects!Passion!

Provocation!Partnership!

Politics!Professionalism!

Performance!

C.I.O. to

C.E.F.R.N.S.*

*Chief Evangelist For Really Neat Stuff

T.T.D.

Compare: “Department Head” versus

“Managing Partner, Finance Inc.”

Notes Page

• See our book, the Professional Service Firm50, re the differences between a traditional “Dept.” and a full-fledged “PSF.”

• Our “The Work Matters” manifesto – at tompeters.com – also covers this.

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

Brand Inside

PSF 2:Brand Work!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

But Does It Matter ????

“On time, on budget … who cares?”

anon. seminar participant (4/99)

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”

CEO, F100 financial services company (10-98)

WOW Project Anatomy

I. Create!II. Sell!

III. Implement! IV. Exit!

I. Create!Reframe!

THERE ARE NO “SMALL” PROJECTS! Observe & Record!!

Head for the trenches!You gotta love it!

Measure: WOW!, Beauty, Raving Fans, Impact!

Build a no-baloney Business PlanCreate community. Now!

Obsess on … the End User. Now!

Reframers’ Rules:Rule 1: Never accept an

assignment as given!Rule 2: You’re never so powerful

as when you are “powerless”!Rule 3: Every “small” project contains the entire enterprise

DNA!

T.T.D.Examine that “small”/

“annoying” project you’re working on. Can it be re-cast as

a WOW/ Culture Change Project? What are the hidden

assumptions about customers/ suppliers/ employees?

Notes Page

• I am adamant: Every project can be made into a “big deal” if your head is in the right place. So … now … COMPLETELY RE-INVENT THAT “SMALL” PROJECT YOU ARE WORKING ON! No bull! E.g.: What about a “Memorial Day Employee Picnic that signals a whole new attitude toward our staff”?

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

T.T.D.

MEASURE … NOW … P-L-E-A-S-E!

Notes Page• NO BALONEY: THIS IS MY #1 GOAL FOR THE WHOLE DAMN SEMINAR … THAT YOU [AND YOURS] WILL MEASURE EVERY PROJECT AGAINST MY FOUR KEY CRITERIA: WOW!, BEAUTY, RAVING FANS, IMPACT.

• [P-L-E-A-S-E.]

E.g.: WOW Scale

1. … Dull as dishwater.

5. … Gets the job done.

7. … “Good work!”.

10. … A serious “Braggable”!

Kaiser: 4.15.29

Liberty Ship

2 years240 days9 hours

4 days, 15 hours, 29 minutes

[Just Say “No” to …

S-t-r-e-t-c-h]

WOW Project “Acid Test”

Can you explain it - with zest -

to your 14-year-old?

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

II. Sell!

Master “The Pitch”!Build Buzz. Consciously.

Network maniacally!Preach to the choir!

Forget your enemies. [Surround and marginalize!]Money kills!

SELL, SELL, SELL!

III. Implement!

- Live, eat, sleep … Quick Prototype!-Play!

- Keep on recruiting! (Sell!)- Obsess on the End User Community!

(Sell!)- Become a Milestone Maniac! / a Timeline Tyrant! / a List Freak! / find Ms. Last 2%!

- Appoint a Marketing Director!- Keep the WOW! front and center!

Culture of Prototyping

“Effective prototyping may be the most valuable core

competence an innovative organization can hope to

have.”Michael Schrage

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

“I view models and prototypes as the

battleground for thoughts and behaviors.”

Michael Schrage

T.T.D./ Prototyper’s LawsDefine a small, practical test of something on a

page or less of text. Now.Gather “found” materials … on the [very] cheap.Find a/one partner-“customer” who’ll provide a

test site.Set a very tight deadline of about 5 days for the

next concrete step.Conduct the test! Debrief A.S.A.P.

Set the next test date. Now. [No more than 5 days hence.]

Notes Page

• The idea is to establish a “rhythm of prototyping” that defines every project.

T.T.D./ Secret No. 1: Go horizontal: Find a (one!) “line” ally in “the Boonies”

Secret No. 2: “Powerless” allies are Cool!

Secret No. 3: Passion Rules!Secret No. 4: Become a Prototyping

Maniac! Secret No. 5: Embrace Politics /

“Community Organizing”!

Notes Page• Main Idea: YOU ARE NOT “POWERLESS.” Seek

out allies in strange places … and get going! DO NOT WASTE TIME “SELLING UP.”

• Attitude: You are the Gandhi/King of your “mission.”

• So: IDENTIFY THE FOLKS YOU WANT TO PLAY WITH RE THAT INCREDIBLY COOL IDEA YOU HAVE!

K2K

Reference:

Rules for Radicals, Saul Alinsky

IV. Exit!“Sell out!” / Embrace “The Suits”!

Recruit a passionate Ms./Mr. Follow-up!

Seed your freaks into the mainstream!Celebrate!

Exit!

SOOOO … HOW MANY OF YOUR COLLEAGUES ARE

“BACK HOME” AT WORK ON NO-BALONEY …

WOW* PROJECTS!

* WOW = Will be remembered fondly/ bragged about 5+ years from now

Epitaph from Hell … Joe T. Jones 1942 - 2000

HE WOULDA DONE SOME REALLY COOL STUFF

BUT … HIS BOSS WOULDN’T LET HIM!

Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations” (10/26/98)

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

1) Turn ignition key.2) Shift into drive.

3) Press foot firmly on the throat of mediocrity.

Source: Mercedes ad

[We are not trying to “WOW you up.”

We think you are/have WOW.

We are trying to give you permission to be WOW.]

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

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

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

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

Notes Page

•DO IT! NOW!

Seminar Y2KMESSAGE: THE

WORK MATTERS!*

*Sorry, Scott!

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

Brand Inside

PSF 3: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

“If one quarter can’t make the journey, that’s the way it

has to be.”Carly Fiorina (1-00/Forbes)

Personal “Brand Equity” Eval– I am known for [2 to 3 things]– My current Project is challenging me …– New things I’ve learned in the last 90 days

include …– My public “recognition program”

consists of …– Additions to my Rolodex include …–My resume is discernibly different from

last year’s at this time …

T.T.D./Personal “Brand Equity” Eval– I am known for [2 to 3 things]– My current Project is challenging me …– New things I’ve learned in the last 90 days include

…– My public “recognition program”

consists of …– Additions to my Rolodex include …–My resume is discernibly different from last year’s at this time …

Notes Page

• Work your tail off on this. THIS IS A VERY SERIOUS EXERCISE. We have chosen these categories very carefully.

They “Get it”?!– stone mason– electrician– plumber– tiler– cabinet maker– contractor– blacksmith– well driller– blaster– sheep shearer– etc.

Icon Woman …–Totally turned on by her work!–“It” matters / a WOW Project!–“It” is … COOL!–“It” is … BEAUTIFUL!–She is … in your face!–She is an … adventurer!–She is … CEO of her own life!

Icon Woman … - She is … at least … a little funky!

–Her curiosity is … insatiable!–She thinks screwups are …

as normal as breathing!–She hangs out with some …

seriously rad Dudes!–She is not God. She is not Bionic

Woman. She is … determined to make a damned difference!

“Well-behaved women rarely make history.”

— Anita Borg, Institute for Women and Technology

Icon Woman Meets the Web …– submits resume on the Web– recruited on the Web– hired on the Web– trained on the Web– creates and conducts projects with

virtual teams on the Web– manages project and client

follow-up on the Web– manages career/reputation-building

on the Web

T.T.D./Soooo…

How’s your Web site?

Notes Page

• So … how is it? MY 18-YEAR-OLD SON HAS ONE! It’s fly-phat.

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment Strategy”/R.I.P.

R.I.P.10 … Major job change [new area of

concentration]; major offsite educational investment; extensive

sabbatical [oddball learning experience of > 2 months];

exceptional community project [presidency of fundraising drive, run

for school board].

R.I.P.5 ... Extensive course work in oddball area of passionate interest; major off-

the-job activity [community involvement, learn to play the cello,

study Chinese].

1 … Company training, as directed.

T.T.D./Your R.I.P.

IS IT … FORMAL? IS IT ... WOW!?

Notes Page

• We think “R.I.P.s” are imperative! So … please take these two questions seriously and literally!

T.T.D./R.I.P.Use by yourself.

Use with your mates.Use [quantitatively?] as a measure of departmental/

P.S.F. renewal.Use in formal eval process.

Notes Page

• The whole idea is to make “R.I.P.s” a/the centerpiece – formally – of measuring unit “freshness.” E.g.: SCORE EVERYONE’S “R.I.P.” ON ITS BOLDNESS/WOW.

Training Y2K

Anytime, anywhere!Whatever!

Concocted by the employee [“Training Account”]

T.T.D./Assignment

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

Brand You … for the Yellow Pages

Notes Page

•THIS IS A BIG DEAL. TAKE IT SERIOUSLY. [“Yellow Pages ads” are the centerpiece of our formal Brand You training programs.]

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

can create your own legend or not.”

Isabel Allende]

[ T.T.D.: How About It?

Replace your current evaluation process with

Yellow Pages ads.]

Notes Page

• NO BULL! Some of our Clients have gone this far. And report stunning results. If you can’t do this formally, try it informally.

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

“Everything can be taken from man but one thing: the last of human freedoms - to choose

one’s own attitude in any set of circumstances, to choose

one’s own way.”Victor Frankl, Auschwitz survivor

T.T.D./Cluetrain ManifestoRelax!

Have a sense of humor!Find your voice and use it!

Tell the truth!Don’t panic!

Enjoy yourself!Be Brave!

Be curious!Play more!

Dream always!Listen up!Rap on!

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

PSF1, 2, 3 … and The Cluetrain Manifesto

Magic!

[Inter]networked Marketsmeet …

[Intra]networked Workers

Source: The Cluetrain Manifesto: The End of Business as Usual

The Cluetrain Manifesto on Intranets

“[Workers] can send email to one person, to a steady group, to a dynamic team, to the entire sales force or ‘just’ to the board of directors.

They can post creative, informative pages that express their interests, correct the mistakes in the official technical documentation or point to

the industry analyst’s report the company doesn’t want anyone to read. They can write a ‘zine that parodies the company line savagely,

play backgammon on line or blow up their colleagues in a ruthless game of Quake. …”

“Hyperlinks subvert hierarchy!”

The Cluetrain Manifesto

[ Words to Live By …

“Hierarchy is an organization with its face

toward the CEO and its ass toward the customer.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business]

Corporate Resistance to “It”

“It all goes back to fear of losing control!”

The Cluetrain Manifesto

Brand Inside

PSF 4:Brand Talent!

Issue Y2K

The Great War for Talent!

“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” Warren Bennis & Patricia Ward Biederman

Alan Kay on PARC’s Bob Taylor

“He was a connoisseur of

talent.”

A Connoisseur of Talent …– Spends time on Talent!– Becomes a student of Talent! – Puts Talent “on the agenda”!– Practices D.I.Y.– Uses Plain English! (If you want “sunny” …

ask for “sunny”!)– Creates Workspaces that foster energy,

entrepreneurship and creativity!– Recruits from oddball places! /

Recruits Oddballs!

“Talent” and Work Space:A Grossly Neglected Connection!

“Imagine working for a company that not only understood that the best ten hours of your day

are spent at work - but did everything in its power to make them energizing, rewarding and

productive as possible. Imagine coming to work each day in a building that greeted every

person as a creative, entrepreneurial, exciting person.”

Rosemary Kirkby, Lend Lease, proposal for headquarters of MLC

“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

“The boundaries for acceptable weirdness have

dramatically expanded.”

Michael Schrage

Axiom: Never hire anyone without an aberration in their

background. (Find the One Ton Cookie Man!)

A Connoisseur of Talent …– Recruits M.I. (Gardner: Logical-mathematical,

linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, interpersonal-others)

– Recruits arts!– Becomes de facto C.D.O. (Chief Diversity Officer)– Turns the pay scale upside down! / Pays Talent!– Rewards & Promotes all on Talent

Development Skills!– Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

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

“From cradle to grave the pressure is on: BE NORMAL!”

Gordon MacKenzie

“Where do good new ideas come from? ...

That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to

maximize differences is to mix ages, cultures and disciplines.”

Nicholas Negroponte

T.T.D.

Use the two Connoisseur of Talent slides as a guide for

creating a Formal Talent Development Plan

Notes Page

• Literally use the items on the two slides as a formal check list to measure yourself [quantitatively] against.

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

will provide opportunities to enable the employee to develop

identity and adaptability and thus be in charge of his or her

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

H.R. to H.E.D. ???

HumanEnablement Department

The NAESP …

Attributes of Those Who “Made” the 10th Grade History Book

–Committed!–Determined to make a difference!–Focused!–Passionate! –Irrational about their life’s project!–Ahead of their time / Paradigm busters!–Impatient! / Action Obsessed

Attributes of Those Who “Made” the 10th Grade History Book

–Made lots of people mad!–Flouted the chain of command!–Creative / Quirky / Peculiar! / Rebels! /

Irreverent!–Masters of improv / Thrive on chaos

/ Exploit chaos!

Attributes of Those Who “Made” the 10th Grade History Book

–Forgiveness > Permission–Bone honest!–Flawed as the dickens!– “In touch” with their followers’

aspirations –Damn good at what they do!

Just Say “No” to “Grout”! Participant: “Don’t you need ‘grout’ between the tiles?”

TP: “No!” [med staff, NFL Special Teams,waiters,

PFCs, cymbals player, bit parts, waiters]

TP’s Ideal Job:

Head of Housekeeping!

“Conformity is the enemy of freedom

and the jailer of growth.”

J.F.K.

Yes! Director of Bringing in the Really Cool People

All You Need to Know?

Chief Evangelist For Really Neat Stuff

Director Of Bringing In The Really Cool People

T.T.D.

STEAL THESE TWO JOB TITLES!

Talent War Y2K!–All out!/ Time consuming!–Never ending!/ Unwinnable!–Includes everybody!/ Everybody’s

game! (“We’re all in sales.”)–Expensive!–Cool!/ WOW!/ Fun!/ Creative!–Strategic!/ Core competence!

Talent War Y2K!

–Brand You within Brand Us!–Encompassing!/ Cultural! (KEWLNESS: mine v. yours)

–Substantive!/ “The best Projects win!” [Cairo 12-99]

–Basis of Brand!/WHO WE ARE!

Talent = Brand

Brand Outside=

Brand Inside

Brand Outside

Context:No “Commodities”!

In the Beginning …

“The audit has become a commodity.”

Big 5 audit partner to TP

Quality Not Enough!

“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than

a competitive advantage.”

J.D. Power

Quality Not Enough!

“While everything may be better, it is also increasingly

the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

What’s Special?

“Customers will try ‘low cost providers’ because the Majors have not given them any clear

reason not to.”

Leading Insurance Industry Analyst (10-98)

“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, coming up with similar ideas, producing similar things, with similar prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

6 Sigma or “Jazzy Offerings”?

WSJ/2-9-00: Nokia extends market share lead [22.5% in

’98 to 26.9% in ’99] over Motorola [19.5% to 16.9%]

TP’s Campaign Y2K

Just say [shout] “No!”

to the “inevitable commoditization” of

anything.

“When we did it ‘right’ it was still pretty

ordinary.”

Barry Gibbons on “Nightmare No. 1”

Pretzel Crumb-less-ness Plus …

“The Ritz Carlton Experience enlivens the senses, instills

well-being and fulfills even the unexpressed wishes and needs of

the guest.”

from the Ritz Carlton Credo

“We want to create waves of lust for our product.”

Andy Grove (on the Pentium Processor)

“You do not merely want to be the best of the best. You

want to be considered the only ones who do

what you do.”Jerry Garcia

Lust Hierarchy

Satisfy … Conform to Requirements … Exceed

Expectations …Delight! … WOW! … Lust! …

ONLY ONES WHO DO WHAT WE DO!

What Jerry Should Have Said???

“You do not merely want to be the best of the best, you want to be considered in conformance with

requirements.”

Nirvana!

- Nordstrom- Four Seasons

- Adirondack Guide Boat- OXO

- Ziplocs

Why?

Cool!/Surprising!Reliable!

Friendly!/Comfortable!Aesthetically pleasing!

T.T.D.And your favorites?

Why? (Pay attention to the flavor of the words you use)

Translation to your/ “finance world,” etc.?

Notes Page

• Think about the words you use to describe “stuff” you really LOVE. Do those terms apply to your unit’s products and services? If you talk about a “compelling” movie or novel or theatrical performance, why not a “compelling business process”?

T.T.D.

What words do you & yours use to describe Customer

Contentment? [Way] beyond “satisfaction”?

[DO SUCH WORDS MATTER?]

Notes Page

• PLEASE [REDUX]: PAY LOTS OF ATTENTION TO WORDS … AND THE EMOTIONAL “SIGNS” THEY CONNOTE. [TomWorld: What applies to a Detroit Red Wings “performance” ought to apply to a “Purchasing Dept. performance”!

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy 1:Lead the Customer!

“The customer is a rear view mirror, not a guide to the future.”

George Colony, Forrester Research

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

incremental advances.”Joseph Morone, President, Bentley College

Early Customer Rejection

Post-Its [12 years!]Chrysler Minivans

VCRsFax machines

FedExCNN

Heart-assist pumpsEtc.

Source: Fortune

Good = Bad/ 1 of 30,000

“We are crazy. We should do something when people say it is

‘crazy.’ If people say something is ‘good’, it

means someone else is already doing it.”

Hajime Mitarai, Canon

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

“Lead” customers!

K2K redux!

T.T.D.: Do You K2K?

Are you working with [numerous] weird, far out customers? [As

opposed to “biggest” customers?]

Notes Page

• Trust me! You will be as Cool as your Coolest Clients. Cool Clients co-invent the future with us. Soooo … WHAT’S YOUR COOL CLIENT PORTFOLIO LOOK LIKE? [Hint: “Biggest” are rarely “coolest.”]

Benchmarking, Perils of …“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

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy 2:Master

E-Commerce!

$35,000,000. = ???

Dell’s Web sales … daily

[AOL delivers more mail than

the USPS!

Source: Fortune 2-00]

2X = 100 days (Internet traffic)2X = 9 months

(network capacity)

Source: Red Herring (1-00)

T.T.D.: Study!!

Read: Business 2.0Red Herring

Wired

Notes Page

• YOU MUST [M-U-S-T] BECOME AN AVID INTERNET STUDENT! PERIOD! SO … HOWYADOING?

Tomorrow Today: Cisco!

$7B of $10BSave $500M (service and tech

support)

C.Sat e >> C.Sat HCustomer Engineer Chat Rooms ($1B?)

Cherry PickingVertical Markets

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut Hook: community services

(database, catalogs, forums, industry job bank, etc.)

The Motley Fool Secret?

“Strangers helping strangers”“Fools’ Logic,” IW

T.T.D.: Message!

COMMUNITY!/ COMMUNITY SERVICES!

Notes Page

• Web Secret No.1: COMMUNITY – as in, User Community – RULES! So: How do your online Community Development Activities rate?

B2B1999 – 2004: 50X

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

T

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

Shop in your Underwear

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

Psych 101: Strongest Force on Earth?

My need to be in perceived control of

my universe!

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Patricia Seybold’s “Basics”:The E-Customer Bill of Rights

Don’t waste my time!Remember who I am!

Make it easy for me to order and procure service!

Customize your products and services for me!

Source: customers.com

“Welcome back, Tommy!”

T.T.D.: Message!

THE CUSTOMER IS IN CONTROL!

Notes Page

• Do you Joyfully “allow” the Customer to lead you around by the nose? Is this truly his/her site? Her/his “home”?

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

The user interface becomes the marketing materials, store front,

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

Jakob Nielsen, Designing Web Usability

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

fired their entire marketing department and replaced it with

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

Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00)

75% of online shoppers don’t complete their

purchase!

Nielsen/Designing Web Usability

All Web projects are customer-interface projects! Simplicity rules!

Make it easy for customers to perform useful tasks!

Less “cool,” more useful!Speed rules!

Nielsen/ ContinuedMust work … on a small screen!

Must work … w/o graphics loading!“Scannability” rules! [Users pick out

key words.]Navigation page: No scrolling!

Remember: 25% to 50% “successful use”

T.T.D.: Message!

SIMPLICITY!

Notes Page

• READ JAKOB NIELSEN’S BOOK! Hold your site to the Exacting Nielsen Standard! [Be ruthless … on yourself.]

T.T.D./Read This!

Jakob NielsenDesigning Web Usability:

The Practice of Simplicity*

*www.useit.com

“The Net hasn’t lived up to its hype. It’s a distant, cold, alien,

threatening world called ‘cyberspace.’ The challenge is to

make the Net into something intimate, warm, friendly, useful,

personal.”Carly Fiorina, CEO, HP @ Comdex ’99

T.T.D.: Message!

Friendliness!

Notes Page

• Is our Site – including B2B sites – “a place called home”?

“Even if executives of established businesses grasp the impact of new

technologies … they still face a massive competitive disadvantage precisely

because they are incumbents. … They do complex financial calculations and get

bogged down in internal political debates. Insurgents have no such

inhibitions.” Philip Evans & Thomas Wurster,

Blown to Bits

The Way “They” Talk!“I have this chance for …

changing the world.”

Marco Boerries, Sun, re StarOffice (Business 2.0, 2-00)

“Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch

Change … Or Die!“Most of the brick and mortars look at the

Internet as an add-on business … until they get a major scare. Then they either

change or die. … You have to put all your heart and soul in that direction, the way

Charles Schwab and Dell did.”Flip Filipowski, divine interVentures (Red

Herring)

There are 2 Kinds of …

Defense*vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

T.T.D.Most important Y2K question: Are you &

yours “dealing with” the Web … or “embracing it”

as “central to our being”?

Notes Page

• SPEND A LOT OF TIME ON THIS “TTD”!

Web Strategy: GE Power Systems

“Launch and Learn”(4 sites in 30 days)

Goodhome.com

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy 3:Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,

finances, education.Source: Business Week (11-99)

$3.3T + $1.5T = $4.8T*

* Larger than Japan!

Most Under-reported story!

9M*/20M+/$4T [> Germany]

* 400K in ’72; 132% since ’92;source: NFWBO, Cognetics

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874?

1874 … Jock Strap1977 … Jogbra

1977 ... 25K1996 … 42M

Yeow!

1970 … 1%

2000 … 50%

OPPORTUNITY NO. 1!*

[* No shit!]

T.T.D.: Measure!How clear are you about your demographics … in

particular, share of women purchasers [for

you, for the industry]?

Notes Page

• Are you getting an “unfair share” of women purchasing your service or product? IF NOT, WHY NOT? [Most of the other schmoes are, after all, asleep!]

T.T.D.: Study!

Does anybody in your industry do “it” right?

Brilliantly?

[If so … how?]

Notes Page

•STUDY!

[Damn it!]

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn“Men and women don’t think the same

way, don’t communicate the same way, don’t buy for the same reasons.

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

they make connections.”

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

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

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

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

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

Paco Underhill, Why We Buy* [*Buy this book!]

Women and Financial Advisors

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

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

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

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

Source: Patricia Braus, Marketing Healthcare to Women

Marketing to Women: Help Them Save Time!80% … work86% … cook

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

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

How Many Gigs You Got, Man?

“Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their

vendor.” Robin Sternbergh/ IBM

T.T.D.

Do you [clearly] understand the

difference between men’s and women’s purchasing habits?

Notes Page

• Again:

STUDY!

• [It took me years to get a handle on “this stuff.”]

Not!!

“Year of the Woman”

Enterprise Reinvention!Recruiting

Hiring/Rewarding/ PromotingStructure Processes

MeasurementStrategyCulture Vision

LeadershipTHE BRAND ITSELF!

“What kind of car does Mommy want?”

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

Not a Morality Play!“It is critical that we all understand that IBM is not marketing to women

entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge

opportunity.”Cherie Piebes

Stuff (A Product of Paying Attention)

Lame I: Check out the pics!

Lame II: 6 guys standing around wondering what a woman would

have in her cube

T.T.D.

DO YOU UNDERSTAND [“GET”]

THE ENORMITY OF THIS OPPORTUNITY?

Notes Page

•Discuss … AT LENGTH!

T.T.D.

What would it take to get you & yours to “Go For

It”?First steps?

Notes Page

• What could you do – in the next 30 days – to begin to test these ideas? Define 10 actions!

Speaking of Enormous

[Missed] [Huge] Opportunities ...

74/55“At each stage of their lives, the needs and desires of the baby

boomers have become the dominant concerns of American business and popular culture. If you can anticipate

the movement of the baby-boom generation’s life-span migration, you

can see the future.”Ken Dychtwald, Age Wave

Aging/“Elderly”2X growth rate$$$$$$$$$$$$

“I’m in charge!”“Experiences” vs. Products

Design revolution!

Good source: Ken Dychtwald, Age Wave

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort … Access … Respect!

“Any student who combines an expertise in gerontology with, say, an M.B.A. or law degree will

have a license to print money.”Newsweek

T.T.D.

SOOOOO … WHERE ARE YOU ON THIS

ONE??? [REMEMBER: 74M!]

Notes Page

• Listen up: THIS IS ANOTHER BIGGIE! Think about it. Discuss it. Collect data. [Become a “student.”] Experiment.

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy 4:Design Rules!

And Tomorrow …

“Fifteen years ago companies competed on price. Now It’s quality. Tomorrow it’s

design.”Robert Hayes

All Equal Except …

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

technology, price, performance and features. Design is the only thing that differentiates one product

from another in the marketplace.”

Norio Ohga

“Design is treated like a religion at BMW.”

Fortune (10/98)

Drop-dead Charm!

“The new Beetle fails at most categories. The only

thing it doesn’t fail in is drop-dead charm.”

Jerry Hirshberg, Nissan Design International

Object of Desire!“Every now and then, a design comes

along that radically changes the way we think about a particular object. Case in

point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a

sculpture, an object of desire, something that you look at.”

Katherine McCoy, Michael McCoy, Illinois Institute of Technology

Design as Soul“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

Check Out the Language:“Tomorrow it’s design …”

“Design is the only thing …”“Design is … religion ...”

“Drop-dead charm …”“Object of desire …”

“Fundamental soul …”

T.T.D.

Where do you stand on design?

[1 = Who, me? 10 = Preoccupation.]

Where do you stand on design-as-soul?

Notes Page

• I’m at a bit of a loss here. I DON’T KNOW HOW TO “MAKE YOU” “GET” THIS. I think it is of the Utmost Importance. I want you – at least – to become “aware” of the Power of Great Design. And … I do [fervently] believe that Great-Design-Is-Soul.

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

One-sixth Second per Item!

“During the 30 minutes you spend on an average trip to the supermarket,

about 30,000 products vie to win your attention and ultimately to make you

believe in their promise.”

Thomas Hine, The Total Package

[ Design Moments!

Shopping cart = 2X heavy items

Source: Wall Street Journal (11-24-99) ]

T.T.D./Message:Services are Not Intangible!

You “give off” hundreds of design cues … daily!

YOU ARE A DESIGNER!

Notes Page

• List 100 [!] “design cues” that you give off! [Okay, start with 25.]

Graceful language!

Susan Sargent Designs: PLEASE COMPLAIN!

Thanks for your order!We dearly want everything

to go p-e-r-f-e-c-t-l-y!If the order was late. Or wrong.

Or if any of the goods are damaged in the slightest.

Or if you’re just having a lousy day and want to unload on someone …

Call our Customer Care Hotline!

T.T.D./“Beauty Contest!”1. Pick one form/ document: invoice,

airbill, sick leave policy, returns claim form.

2. Rate it on a 1 to 10 scale (1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity.

3. Repeat … every 15 days.

Notes Page

• DO THIS! USE MY TERMS! [Beauty … Grace … Clarity.] Be quantitative. [PLEASE.]

WEB Words: TP

NO CLUTTER!

“When you click on Yahoo! today you get the same

simple, nearly graphics-free home page you would have seen had you clicked three

years ago.”Fortune, on Zod Nazem,

Yahoo! CTO

T.T.D.: Campaign Y2K!

Plain, energetic, sparkling English!

Notes Page

• Spend … a lot … of time talking about this. MAKE IT YOUR EVERYDAY STANDARD FOR …

EVERYTHING … THAT EMERGES FROM YOU/YOUR UNIT.

T.T.D./Design “Awareness”!

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

and the awful.]

Notes Page

• THIS IS MY “SECRET.” I am not “artistic.” But … I did teach myself to be … CONSTANTLY AWARE. The Key: My [simple] notebook! [I’VE NOW BEEN “RECORDING” FOR ALMOST TEN YEARS!]

T.T.D./Huge Opportunities

[That Damn Few Are Pursuing!]

Women!The rapidly aging population!

Design!

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy 5:It’s the Experience!

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is Theater & Every Business a Stage

“The [Starbucks] Fix” Is on …

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

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

customers come for refuge.”Nancy Orsolini, District Manager

Safe, On Time and …

“We defined personality as a market niche. We seek to

amuse, to surprise, to entertain.”

Herb Kelleher, Main Man, LUV Airlines

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

Mantra: “Any good can be ing-ed”

the driving experiencethe pumping experience

the sitting experiencethe reading experiencethe washing experiencethe cooking experience

Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & Every Business a Stage

“Cars are not simply to get you from place to place. They ought to be entertainment. We are sort of in the entertainment

business.”

J Mays, Ford

“This is the end of the pure product era. For instance, car

makers are beginning to understand that the car is a

platform for delivering services that drive the customer

experience.”Carly Fiorina, HP @ Comdex ’99

“What’s the plot?”

Freeman Thomas, designer

T.T.D.

WHAT’S THE [your] PLOT?

Notes Page

• WHAT IS YOUR STORY? [Be specific!] Message: This applies to every [Finance] project!

T.T.D.

Carefully examine/think through every aspect of “the experience of us.”*

*This holds for the Finance Dept. as well as the corporation’s “products”

Notes Page

• This demands a lot of care! THINK OF YOURSELF AS A DRAMATIST, A DIRECTOR. THINK ABOUT “THE WAY WE COME ACROSS.” Be … ridiculously … specific! [God is in the Details.]

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Women Rule! (and the elderly)

S4: Design Rules! (too)

S5: It’s the Experience!Bottom Line: Glorious Age of the

BRAND!

[ “Take Home Value”Road Warriors: Cast Off Your Blands/

Free Your Taste Buds

Tabasco Sauce Dijon Mustard

Balsamic Vinegar ]

Brand Outside

BRAND POWER!

Brand Defined

DistinctionExcellence

Emotional “Signature”Trustworthiness

ConsistencyShorthand

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take up innovations will assist in the rise

and rise of the brand.”Gillian Law and Nick Grant, Management [New Zealand]

“What Matters to Online Buyers”*

#1: Product brand

#2: Retailer brand

*Source: Business 2.0

No Room for Brands?Nike

SaturnCNN

America OnlineCharles Schwab

StarbucksThe Gap

IntelEtc.

Brand = Trust!

“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”

The Economist

“Branding is not a problem if you have the right mentality. You go to your team and

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

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

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

can do it, we can do it.’ ”Barry Gibbons

“Salt is salt is salt. Right? Not when it comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably

the same as many other products on the shelf.”

Tom Asaker, Humanfactor Marketing

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

“Organizational Psychotherapy”/

WHO WE ARE!

Notes Page

• This is The Big Enchilada:

SPEND – lotsa – TIME ON IT!

“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication

highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the company’s

attitudes and values becomes the decisive parameter for success. It

demands that you find out who you are as a company.”

Jesper Kunde, Corporate Religion

“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and

diversity, choices become increasingly informed by belief. [Consumers] want to

know who is behind the products that they buy. They want to know the

company. They want to know what you think.”

Jesper Kunde, Corporate Religion

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology. Stories

create the emotional context people need to locate themselves in a larger experience.”

Brand = Special = Passion =

Connection = Caring*

* (Way) beyond “market research”

“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

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

T.T.D./Assignment Y2K

Write an essay on “Who we are.”*

* Jesper Kunde, Corporate Religion

Notes Page

• DO IT! 500 words. [And

then: 10 words.]

“How can I know what I think till I see what I say”*

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

*Graham Wallas, The Art of Thought

The Ten Rules of Radical MarketingCEO must “own” the marketing function!

Hyper-lean Mktg. Dept. (No filters!)CEO hangs out with customers!Love + Respect your customers!

Just Say No … to market research!Hire only passionate missionaries!

Create a Community of users-customers!Emphasize one-to-one marketing tools!

Celebrate craziness!Be insanely True to the Brand!

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

T.T.D.HAVE YOU GENUINELY

EXAMINED THE ENORMITY OF “BRAND POWER”?

ARE YOU A NO-BALONEY STUDENT OF BRANDING?

Notes Page

• As usual: STUDENT-HOOD MATTERS!

T.T.D./Message Bran[d]son:

Live the Brand!*

*How? [Be specific! As of … NOW!]

Notes Page• YOU ARE THE BRAND! How – exactly – has that

been expressed by your actions … TODAY?

[IN THE LAST 45 MINUTES?]

Brand Leadership

Lead Out Loud!

ENTHUSIASM RULES!“I am a dispenser of enthusiasm.”/ Ben

Zander

“If you want to be persuasive, you have to generate a high level of energy. It’s energy that makes you visible, that gives you

presence. I call it ‘performance energy,’ and it’s the basis of dynamic leadership.

There is nothing artificial about it. Performance energy is an authentic part of who you are. You

just have to access it.”

Martha Burgess, Theater Techniques for Business People

T.T.D.Evaluate yourself

[unsparingly] as an [enthusiastic]

“performing artist”!**In today’s dealings. [Use

outside assistance?]

Notes Page

• You don’t have to be Bill Cosby. You do have to understand that … ALL LEADERS

ARE ON-STAGE … ALL THE TIME! [And: “Leader” does NOT mean “boss.” It means anyone trying to “Get Cool Stuff Done.”]

“You must care!”Melvin Zais

“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

The Sweet Smell of …

“You can ‘smell’ caring [engagement, respect]

from a mile away!”

Seminar Participant, London (12/99)

T.T.D.

“You must care!”Melvin Zais

“If you ask me what I have come to do in this world, I

who am an artist, I will reply, I am here to live my

life out loud.”Emile Zola

“I’d rather regret the things I have done than the things I have not.”

Lucille Ball

T.T.D./Follow Ann Richards’ Dogma

Show up!

Know your message!

PUT YOURSELF AT RISK!

Notes Page

•

Sooooooo …… ???

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti