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Tom Peters Seminar2001
Rollercoaster Days: Learning to … Rock & Roll!
Boise 06.08.01
More at … tompeters.comSlides from this seminar;
Master Presentation, for in-depth; annotated Special Presentations
[Women Rule!, Design!, etc.].“Cool Friends” (referenced in seminar).
Discussions re this stuff.Calendar of events.
Lavender text in this file is a link.
“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
<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, talk april2001
“We are in a
brawl with no rules.”
Paul Allaire
S.A.V.
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!)
“It used to be that the big
ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional
Venture Partners)
Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge customers on the attack.
2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology
and products our customers need.4. Success is achieved by leading change,
not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
Structure
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
“When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of Goldman Sachs’ Investment Policy
Committee, answered: I’m sure there are success stories
out there, but at this moment I draw a blank.”
Mark Sirower, The Synergy Trap
“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.
We buy the engineers and the next generation product. …”
John Chambers, Cisco
Lessons from the Bees!
“Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into
smaller colonies which can grow value faster. What the bees are telling us is that the corporate
world has got it all wrong.”David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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
“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
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut … 10,000 Jobs”
“Middle-level and senior managers are expected to be
the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)
White Collar
Revolution!
108 X 5vs.
8 X 1** 540 vs. 8 (-98.5%)
The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
Automation+
75% of what we do: 40 “expert” decision rules!
IBM’s Project Eliza!
80,000?
“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.
Cisco, Dell =
Brand-owning companies who sell Customer
Satisfaction
Source: David Schneider & Grady Means, MetaCapitalism [e.g.: Cisco owns 2 of 38
assembly plants]
Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
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%++)
When: Now!
11 September 2000
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 … Etc. … Etc.
“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)
eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR:A Walk through a 21st Century HR Department, John Sullivan, IHRIM
HR as “PSF”: Centers of Excellence (A Few) + Outsourcing (Mostly)
Maybe one [or more] of your “PSFs” becomes the tail that wags the
dog called Market Cap????? [E.g.: engineering-
IS-logistics-customer service]
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
“Every project we take on starts with a question:
How can we do what’s never been done
before?”Stuart Hornery, CEO, Lend Lease
Your Current Project?
1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)
“Learn not to be careful.”
Photographer Diane Arbus to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
Brand Inside
Brand You: Distinct …
or Extinct
“New Economy changes how
firms treat layoffs”
Headline, USA Today (03.19.2001)
New World of Work
< 1 in 10 F500#1: Manpower Inc.
Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27MTotal: 31M-55M
Source: Daniel Pink, Free Agent Nation
“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
“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
Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the
Yellow Pages
Brand Inside
Brand Talent: The Great War for Talent
The Case
“When land was the productive asset, nations
battled over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games in 6 seasons. Tommy Lasorda—P26
games. Sparky Anderson—1
season. 33 Division Titles. 26 League Pennants. 14
World Series.
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)
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, CEO, Enron
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN THE WORLD TO HEAD
EACH INITIATIVEE.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent (05.17.00)
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)
So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,
$3-4M per year. Pay: $135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for Talent, re Georgia-Pacific
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!
“Talented people are less likely to wait their turn. We used to
view young people as trainees; now they are authorities. Arguably
this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
6. Diversity
Mess Rules!
“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
Women and new-economy
management …
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
“Guys want to put everybody in their hierarchical place. Like, should I have more
respect for you, or are you somebody that’s south
of me?”Paul Biondi, Mercer Consultants [from It’s Not Business, It’s Personal, Ronna Lichtenberg]
Women’s Stuff = New Economy Match
Improv skillsRelationship-centric
Less “rank consciousness”Self determinedTrust sensitive
IntuitiveNatural “empowerment freaks” [less
threatened by strong people]Intrinsic [motivation] > Extrinsic
Women’s Strengths: Link [rather than rank] workers; favor interactive-collaborative
leadership style; sustain fruitful collaborations; comfortable with sharing
information; see redistribution of power as victory, not surrender; favor multi-
dimensional feedback; 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
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)
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
8. Weird
The Cracked Ones Let in the Light!
The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
Axiom: Never hire anyone without an aberration in their
background!
QCC/Quick Culture Change
Hire Weird
Promote Deep
Rule of Three (3 = Critical Mass)
Enron
COO: Louise Kitchen, F, 29; created
EnronOnline as “Skunk Works”
Nasser’s Triad*: The Internet Is the New Job 1
Brian Kelley, 40, head of global sales and service (GE appliances); first non-“car guy”
in the job
Karen Francis, 38, eBusiness czar (Olds brand boss)
Marv Adams, 43, CIO (Bank One’s IT infrastructure consolidator)
* All three are “direct reports”
The Golden Triangle: (1) Creator-Inventor-
Visionary … (2) Talent Fanatic … (3) Inspired
Profit Mechanic.
Project Team Golden Triangle
(1) Champion-Maniac. (2) Implementer-Pol. (3)
Schedule & Budgets Fanatic.
9. Opportunity
Make It an Adventure!
“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 …
Human
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
ObsessionGreatness
PerformancePay
Youth DiversityWomenWeird
OpportunityLeading Genius
HR Folks: YOU – not
“marketing” - “OWN” THE “BRAND PROMISE”!
(If you wish.)
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
First Steps
Make a list of the traits you really want to unearth. (TP &
“sense of humor;” GR & jaywalking.)
Promote for TDS/Talent Development Skills.
Work up an EVP.
Goal of the Year No. 1*: Find-Develop-Mentor
ONE Extraordinary Person.
*CEO, large financial advisory firm, April 2001
New Organizational World: Shifts of Emphasis
Staffing Fat ThinOrganization Vertical HorizontalWorkforce Homogeneity DiversityPower Source Status/Command Rights Expertise/RelationshipsLoyalty Company ProjectCareer Asset Organizational Capital Reputational Capital
Source: “The Workforce of the Future,” IHRIM Journal (12.2000)
Brand Inside
Brand Action:Getting Started … a
Personal Perspective
The following slide begins the “Boss-Free Implementation of
Stuff That Matters” Section. The slides in this section are heavily
annotated.
Use Normal or Notes Page View to access the notes.
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA: 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”
or
“The First Annual Seriously
Kewl Celebration of Our Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War for Talent via … a thoroughgoing review
of how safety and environmental issues contribute to making this a
Great Place to Work?
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!
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!
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
Brand InsideReprise:
THINK WEIRD: The High Standard
Deviation Enterprise
“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
Saviors-in-Waiting
Disgruntled CustomersFringe CompetitorsRogue Employees
Edge SuppliersWayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue
Employees
“Corporate consciousness is predictably centered around the
mainstream. The best customers, biggest competitors, and model
employees are almost invariably the focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
“The highest performing companies have well-developed systems for killing ideas
their customers don’t want. As a result, these companies find it very difficult to invest adequate resources in disruptive
technologies—lower margin opportunities that their customers don’t want—until they
want them. And by then it’s too late.”
Clayton Christensen, The Innovator’s Dilemma
Button-down Org H.S.D.E. .
• Acquire for market share• Suck up to biggest customers• Pursue “strategic vendors”• Bigger is better• Accept assignments as given• Hire 4.0s from “top schools”• Promote when they’ve “paid
their dues”• Appoint a “prestigious” board
• Hang out with my pals• R.A.F.• Be “professional” at all
times/Honor thine elders
• Acquire for innovation• Partner with cool customers• Seek out pioneering vendors• Break it up … to refresh• Reframe all tasks to innovate• Hire “intriguing,” wherever• Promote tomorrow if the work
product is weird and WOW• Appoint an interesting,
headstrong board• Take a freak to lunch today• F.F.F.• Stay loose, stay cool/The hell
with thine elders
“But don’t we need some
grout between the tiles?”
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
Quality Not Enough!
“While everything may be better, it is also increasingly the
same.”Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
10X/10X
Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
OVERVIEW
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Annual savings in service and support from customer
self-management: $550M
Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early
1999: 30 times a day. Late 2000: 30 times per … minute.
Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s:
2 weeks, 2 per week. Late 2000: 5 such deals per day
Source: www.ecompany.com (1/2001)
COMMUNITY SERVICES!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
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
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
“Human resource management (HRM) systems will begin to look more like customer
relationship management (CRM) systems—where we must know as much about our people
(existing and future) as we do about our customers.”
“Applications in the future will be much more personalizable. Every user will have a customized way of working with their
information. There will be more of a self-learning and intuitive model than we have today.”
Source: IHRIM Journal (12.2000)
RADICAL STRATEGIES
REQUIRED
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
GE & the Web
Purchasing: 2000: $6B; 2001: $15B
Sales: 1999: $1B; 2000: $7B; 2001: $20B+
Source: Business 2.0 (05.01)
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“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
A DREAMER’S MEDIUM!
“There is no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams
you could never have dreamed
before!
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
Message: Survivors will move all their operations
to the Web. Now. Web = Encompassing … or else.
Brand Outside
Strategy 1A:Healthcare et al.:
Embracing ane-Led Age of
Self-Determination
“The Web enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Impact #1(?):
Healthcare
HealthCare2001
Consumerism X Demographics X IS/Internet X Info Consolidators X
Genetics & Devices Revolution = YIKES!
1. Consumerism (Patient-centric Healthcare)
“We expect consumers to move into a position of dominance in the early
years of the new century.”
Dean Coddington, Elizabeth Fischer, Keith Moore & Richard Clarke, Beyond Managed Care
Today’s Healthcare “Consumer”:
“skeptical and demanding”
Source: Ian Morrison, Healthcare in the New Millennium
“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention bias. Info availability (disease, health,
docs, support groups, outcomes). Boomers (“I’m in charge!” Discretionary $$$$ to spend: cosmetic surgery, vision improvement, etc.).
Self-care (chronic disease). High expectations (genetics, etc.) …
Consumer Imperatives
ChoiceControl (Self-care, Self-management)
Shared Medical Decision-makingCustomer Service
InformationBranding
Source: Institute for the Future
“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00
“In many ways, the nursing profession is the most qualified to respond to current changes in the health system. Nurses’ training focuses more on the
behavioral and preventive aspects of health care than does that of
physicians.” Institute for the Future
“Online Medical Records Seen Empowering
Patients”
Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K
patients @ CareGroup
“Self-medication is the wave of the future, whether the [pharmaceutical] industry
likes it or not.”
Wall Street Journal (5-23)
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”
3. The IS/Web REVOLUTION
Info Revolution
Consumerism (research, consultation, B2C, etc.)
Clinical Info Systems (guidelines and outcome measurement, etc.)
100% Web-based (internal) SystemsElectronic Medical Records
Patient-physician email-consultationTelehealth-Remote Monitoring
(biosensors, home testing, etc.)
Telemedicine (consultation, invasive treatment, “global medical village,” etc.)
“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”
Detroit Med Center: $100M IS Makeover
Experiment: Surgical residents equipped with Palm IIIxe. Med Director: “It’s not unusual to
have a team of 5 or 6 residents responsible for the patients of 25 doctors. For each resident, that
could mean seeing 40 patients spread across 10 floors and 5 buildings.” Records work was
manual; but “Now you export the list of patients to your Palm, with the room number
for each patient and with lab results from
the last 72 hours.”
“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
“A healthcare delivery system characterized by idiosyncratic
and often ill-informed judgments must be restructured
according to evidence-based medical practice.”Demanding Medical Excellence: Doctors and
Accountability in the Information Age, Michael Millenson
“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
“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.
“Established state-of-the-art cancer care—about
which there is no longer any debate—is erratically applied.”
Source: Institute of Medicine’s National Cancer Policy Board
CDC 1998: 90,000 killed and 2,000,000 injured
from nosocomial [hospital-caused] drug
errors & infections
“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
“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
“In health care, geography is
destiny.”Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and
Accountability in the Information Age, Michael Millenson
“With meticulous detail, historical accuracy, and an uncommon
understanding of the clinical field, Millenson documents our struggle
to reach accountability.”
Journal of the American Medical Association, on Demanding Medical
Excellence: Doctors and Accountability in the Information Age, Michael Millenson
“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. The “Consolidators”: Fat or Thin?
WebMD (or heirs
& assigns)
“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
“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
“America has twice as many hospitals and physicians as
it needs.”Med Inc., Sandy Lutz, Woodrin Grossman
& John Bigalke
5. Genetics & Devices
Genetics & Devices
Pharmacogenomics (“mini”busters, rational drug design, personalized medicine,
gene therapy, vaccines--20% to 50% prescriptions not work)
Neural Stem Cells
Minimally invasive surgeryAdvanced imaging
“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)
“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
Is your strategy centered around customer-client-
patient-citizen empowerment & self-
determination? Hint: This means letting go of
traditional sources of power!
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%
????
80%
Riding Lawnmowers
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family
healthcare, finances, education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9M/27.5M/$3.6T > Germany
New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!*[* No shit!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same way, don’t communicate the same
way, don’t buy for the same reasons.”
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,
they make connections.”
“Men seem like loose cannons. Men always move faster through a store’s
aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants,
pick something up, and then, almost abruptly he’s ready to buy. … For a
man, ignoring the price tag is almost a sign of virility.”
Paco Underhill, Why We Buy* (*Buy this book!)
Women and Healthcare
Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for
time … and make 75% of health care decisions and control 2/3 of health care $
$$$ [and constitute 2/3 of health care employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.
Women do not want … an in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
“Women Beat Men at Art of Investing”
Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of
stocks more often; women choose carefully and hold on for the long term)
Marketing to Women: Help Them Save Time!
80% … work86% … cook
58% … run errands with kids38% … take child to school
21% … go to the gym21% … take outside classes
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done indicates that women really care about the relationship with their
vendor.”
Robin Sternbergh/ IBM
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
“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
[“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female
friends. When days go by without that connection, I feel
like a radio playing in an empty room.”
Anna Quindlen]
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
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the
female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment. Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her intelligence and ability.”
EVEolution
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
Not!!
“Year of the Woman”
Enterprise Reinvention!
RecruitingHiring/Rewarding/Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
THIS JUST MIGHT BE THE BIGGEST
“THING” IN THIS SEMINAR.
[PLEASE: THINK ABOUT IT!]
Psssst! Wanna see my “porn” collection?
27 March 2000: email to TP from Shelley Rae Norbeck
“I make 1/3rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women
friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
“If we are single, they say we couldn’t catch a man. If we are
married, they say we are neglecting him. If we are divorced,
they say we couldn’t keep him. If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female political candidacy
Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ??
0
“Amazing, now that I think about it. A bunch of guys --
developers, architects, contractors--sitting around
designing shopping centers. And the ‘end users’ will be overwhelmingly women!”
Message: WHAT AN [overlooked] OPPORTUNITY!
Some Possible First Steps
Data! (market research/best practices)
Women as project managers/critical mass for many/most new product &
marketing teams
Strategic recruitment & promotion program (D&T)
“Critical Mass” of women on the Board (“rule of three”)
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%)
[ Member Growth: 1987 – 1997
18 – 34: 26%35 – 49: 63%
50+: 118%Source: IHRSA]
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
50+
$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 targetsKen Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
Priorities: Aging/“Elderly”
Experiences … Convenience … Comfort
… Access … Respect!
“If you’re 35 years old and younger, you’re still acquiring possessions. If you’re
between 35 and 50, you’re buying services. And if you’re over 60, you’re buying experiences. Much of our marketing
culture is Gen X, and they’re focusing on themselves and Gen Y, and not doing a
particularly great job of focusing on boomers and seniors.”
Paco Underhill, Business Week OnLine, 01.04.01
Message: WHAT AN [overlooked] OPPORTUNITY!
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.
“Of all the ways the company will be judged over the next
decade, none will be greater than our
response to the issue of climate change.”
William Clay FORD Jr.
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
Message: WHAT AN [overlooked] OPPORTUNITY!
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
Brand Outside
Strategy 3A:
Design Matters!
All Equal Except …
“At Sony we assume that all products of our competitors have basically the same
technology, price, performance and
features. Design is the only thing that differentiates one product from another in the
marketplace.”Norio Ohga
“We don’t have a good language to talk about this kind of thing. In most people’s
vocabularies, design means veneer. … But to me, nothing could be further from the
meaning of design. Design is the fundamental soul
of a man-made creation.”Steve Jobs
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
P.S.
Web = PURE DESIGN MEDIUM
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)
Design “is” … WHAT & WHY I LOVE.
LOVE.
I LOVE my ZYLISS Garlic Peeler!
Design “is” … WHY I
GET MAD. MAD.
Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK
PHONE. Major Reward!
Design is never neutral.
Hypothesis: DESIGN is the principal difference
between love and hate!
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.
Internal “Services” are Not Intangible: You “give off”
hundreds of design cues … daily!
YOU ARE A DESIGNER!
First Steps: “Beauty Contest”!
• Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form
• Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty, Grace, Clarity, Simplicity
• Re-invent!• Repeat, with a new selection, every 15
working days.
Radical
Simplicity!
Great design = One-page
business plan (Jim Horan)
Life 101: Contracts
What are the 5 (not, 4, not 6) Main Points?
Please summarize on ONE page. (ENGLISH, PLEASE.)
(Let the bloody lawyers and agents do their masturbatory acts on the “last 98%.”)
Understand that if it’s “good,” we’ll all be healthy & wealthy & wise; if it’s bad,
somebody’s lawyer will figure a Way Out … fast. (McK: If you ever have a Problem, we’re gone tomorrow a.m.)
“Revenues on the Web
are determined almost completely
by usability.”Jakob Nielsen (The Economist 04.28.01)
SWA
Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t
believe they’re done)
30% of revenues directly from site (vs. 6% for others)
Source: Business Week (09.00)
The Complexity Conundrum
Complex problems call for complex systems.
Complexifiers take refuge behind complex systems. (Complexifiers complexify complex
systems.)
Those who make the history books are simplifiers.
If you can’t explain it in one page of prose, it ain’t worth explaining.
Message: Design is the wellspring of
branding. Great design takes guts and is “soul
deep.”
Message: Men cannot design for women’s
needs.
Design Rules! [Literally]
Palm Beach County’s U.C.B.* [*Utterly Confusing Ballot]
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
“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
Plot
Williams Sonoma = 5 [was 10]Crate & Barrel = 8
Sharper Image = 9+Smith & Hawken = 8+
Garnet Hill = 9L.L. Bean = 4 [was 9+]
Colonial Williamsburg = ?
The “Experience Ladder”
Experiences Services
Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
Message: “Experience” is the
“Last 80%”“Experience” applies to
all work!
Client: “We’re not like Nike! We sell paper clips , 9mm bolts, who can be bothered?”
JK: “The whole world can be bothered if you brand
them well. Nike does not actually sell shoes. Nike sells the experience of using Nikes, the feeling of being a winner. And they
condense the message into just three words:
Just Do It! It is a question of being the only one, of offering the market
something unique.”
Source: Jesper Kunde, A Unique Moment
Extraction & Goods: Male dominance
Services & Experiences: Female
dominance
First Step (?!): Hire a theater director, as
a consultant or FTE!
HR eTraining Director: Hire a GAME Designer!
HP Revisited
PWC Consultants lead Business Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service Economy”)
Terrific Servers (“Goods Economy”)
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE YOU [these days] ?”
TP to Client
“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
“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
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.”
“Most executives have no idea how to add value to a market in the metaphysical
world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]
Jesper Kunde’s Challenge: All business processes
should be aligned with the
Brand Promise. Think … Brand Driven Systems!
Remember!
Talent = Brand*
* And don’t forget Hal R.
Remember: What’s your company’s
EVP?Employee Value Proposition, per Ed
Michaels et al., The War for Talent
Edgartown MA: A&P Fun in the Sun Store
DO THE EMPLOYEES
BUY THIS ACT?
“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
“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 ”
Message: REAL Branding is personal. REAL Branding is integrity. REAL
Branding is consistency & freshness. REAL Branding is the answer to WHO
ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments,
all hands affair.
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
#49
I. Personal Stuff …
Indefatigable
“indefatigable” … “courage” … “love the
thrill of the hunt” … “must not have just a desire to win, but a need to win” … “enjoy doing things they don’t
know how to do” … “seek out discomfort zones in order to gain new experiences”
… “willing to piss people off” … “LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES”
Dare to Care!
“LEADERS CARE!” … “The true definition of leadership
is service.” … “genuinely care” … “Leaders CARE!” … “Leadership is service.” …
“LEADERS SERVE.”
Real!
“Leaders are living individuals whom employees can smell, feel,
touch their presence” [the elevator test] … “Leaders love their work. Their passion is infectious.” … “If you love what you do, it shows.
You can’t fake love and succeed.”
II. Tactics …
“Leaders have a kid alive in them.” … “Leadership
is the PROCESS of ENGAGING PEOPLE in
CREATING a LEGACY of EXCELLENCE.” …
“Hire smart – go bonkers – have grace
– make mistakes – love technology –
start all over again.”
“I don’t know.”
Karl Weick
“The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame
where the old tools of logic may be its undoing rather than its salvation. To drop these tools is
not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the
unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the
form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in
the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick
BossMessage2001: YOU CAN’T KEEP UP!
YOU DON’T HAVE THE ANSWERS!
Priority #1
“To Don’t ” List
Brand Leadership
Passion Rules!
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.]
“You must be the change you
wish to see in the world.”
Gandhi
“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
“Create a Cause, not a ‘business.’
”Gary Hamel, Fortune (06.00), on re-inventing a
company (Exemplar #1: Charles Schwab)
“As Ministers of The Republic of Tea, our
not-so-covert mission is to carry out a Tea
Revolution.”Ron Rubin & Stuart Avery Gold,
success@life
“Our free and open immigration policies welcome all who wish to flee the tyranny of
coffee crazed lives and escape the frazzled fast paced race-to-stay-in-one-place existence that it fuels. In our tiny land, we have come to learn
that coffee is about speeding up and losing sight, while tea is about slowing down and
taking a look. Because tea is not just a beverage, it is a consciousness altering
substance that allows for a way of getting in touch with and taking pleasure from the beauty
and the wonder that life has to offer.”
Ron Rubin & Stuart Avery Gold, success@life
Ben Zander: “I am a dispenser of
enthusiasm.”
“Entusiasmatore”
Word invented by Silvio Berlusconi, meaning enthusiast-salesman
“A leader is a dealer in hope.”
Napoleon
“I’d rather regret the things I have
done than the things I have not.”
Lucille Ball
“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
“Let’s make a dent in the universe.”
Steve Jobs
