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Tom Peters Seminar2001
We Are in a Brawl with No
Rules!Pittsburgh/09.20.2001
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.
<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
“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take over the
world.” – Stephen Hawking, in the German magazine Focus (Also see Kurzweil’s The Age of the Spiritual
Machine.)
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
“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!)
“Most of our predictions are based
on very linear thinking. That’s why they will
most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01
“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
BMcC: (1) Hierarchy vs. “Network organization.” (2)
NWO = “Doctrine as center of gravity”/source of motivation;
distributed support & decision-making;largely self-organizing; “outside the military sphere.”
The “New War”
Best defense: CELL PHONES!
“Our military structure today is essentially one
developed and designed by Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“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
Structure
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
TOPICS. BRAND INSIDE. Forces at Work II: The Destruction Imperative. Brand Org: Lean, Linked, Internet-driven, Virtual. Brand Work: The Professional Service Firm Model. The
Heart of the V.A. Revolution: PSF Unbound. Brand You: Distinct … or Extinct. Redefining
the Work Itself: The WOW Project. Brand Action: Getting Started (When You Are
“Powerless”). Brand Talent: The Great War for Talent. Brand Talent+: The Education Fiasco.
Summary: The High Standard Deviation Enterprise.
TOPICS. BRAND OUTSIDE. Forces at Work II: The Sameness Trap. Strategy 1A: Use E-
commerce to Re-invent Everything. Strategy 1B: Healthcare et al.: Embracing an e-Led Age of Self-determination. Strategy 2A: Women
Rule. Strategy 2B: Welcome to “Old World.” Strategy 2C: Welcome to “Green World.”
Strategy 3A: Design Matters. Strategy 3B: It’s the Experience. Strategy 4: Brand Power.
TOPICS. BRAND LEADERSHIP. Leading in Totally Screwed-up Times.
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
“The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and
financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a romantic notion. Large companies are
incapable of ongoing innovation, of ongoing flexibility.”
“Increasingly, successful businesses will be ephemeral. They will be built to yield
something of value – and once that value has been exhausted, they will vanish.”
Fast Company (03-00)
Brand Inside
Brand Org: Lean, Linked,
Internet-driven, Virtual
White Collar
Revolution!
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
The Pincer 5
“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!
The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
“Don’t own nothin’ if you can help it. If you can, rent your
shoes.”F.G.
Better Red than Dead?/Better Dead than Red?
“We will see more and more outsourcing of
discovery processes.”Craig Venter
Better Red than Dead?/Better Dead than Red?
“If we completely outsourced all of our genetic
analysis, we’d be held hostage by outside people.”
Brian Spear, Director of Pharmacogenomics, Abbott
Brand Inside
Brand Work: The Professional Service Firm
Model
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!
BMW’s Designworks/USA:
>50% from outside work
eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
(1) 100% goes on the Web.
(2) Non-awesome is outsourced.
(3) Remaining “Centers of Excellence” are leveraged
to the hilt!
Brand Inside
The Heart of the Value Creation Revolution:
PSF Unbound!
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
[“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
HP … Sun … GE … IBM … UPS … UTC …
General Mills … Springs … Anheuser-Busch …
Carpet One … Delphi … Etc. … Etc.
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”
Bob Nardelli, GE Power Systems
GE’s New Six Sigma Approach
Old view: Out of service 9 days. 4 days are transport, which is client
responsibility.
New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =
Client’s World.Source: Steve Kerr, VP, GE
“The primary strategic mission for [CEOJeffrey] Immelt is to hasten GE’s transformation
from a low-margin manufacturer to a more lucrative services
company that sells solutions as much as stuff.”
Newsweek/09.10.2001 (Welch raised share of services revenue from 15% to 70%)
“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)
Springs
Collections.Flexible sourcing.
Packaging.Merchandising.
Promotion.Design.
Systems & Site mgt.
= Turnkey.
Brand Inside
Brand You:
Distinct … or
Extinct
“If there is nothing very special about your work, no matter how hard you apply
yourself, you won’t get noticed, and that
increasingly means you won’t get paid much either.”
Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2001
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
Sam’s Secret #1!
Minimum New Work SurvivalSkillsKit2001
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
“You must realize that how you invest your human capital matters as much as how you
invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they
appreciate? How much will my portfolio of career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
[“My ancestors were printers in Amsterdam from 1510 or so until 1750 and during that entire time
they didn’t have to learn anything new.”
Peter Drucker, Business 2.0 (08.22.00)]
“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
Invent. Reinvent. Repeat.
Source: HP banner ad
Brand Inside
Redefining the Work
Itself: The WOW Project
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
“Learn not to be careful.”
Photographer Diane Arbus to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
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: Model F4
Find a Fellow
Freak Faraway
Heart of the Matter
F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.
And …
K2KK*S2SS***Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
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!
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
“It is a glory to have broken such infamous orders.”
John Adams, to Congress, on ignoring his charter and negotiating successfully with the Brits for Independence, against the will of the French
Sales2001
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople in great technology companies can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!
Brand Inside
Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Model 24/7: Sports Franchise GM
2. Greatness
Only The Best!
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent (05.17.00)
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
4. Pay
Fork Over!
“Top performing companies are two to four times more likely
than the rest to pay what it takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
What gets measured gets done. What gets
paid for gets done more. What gets paid
a lot for gets done a lot more.
5. Youth
Grovel Before the Young!
“Why focus on these late teens and twenty-somethings? Because they are the first
young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has
triggered the first industrial revolution in history to be led by the young.”
The Economist [12/2000]
6. Diversity
Mess Rules!
“Diversity defines the health and wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting
the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity,
nourishes the human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
7. Women
Born to Lead!
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s 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 [empowerment > top-down decision making]; sustain fruitful collaborations;
comfortable with sharing information; see redistribution of power as victory, not surrender;
favor multi-dimensional feedback; value interpersonal & technical skills, group &
individual contributions equally; readily accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate cultural diversity
Source: Judy B. Rosener, America’s Competitive Secret
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Investors are looking more and more for a relationship with their
financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills
than are men.”
Hardwick Simmons, CEO, Prudential Securities
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
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
“Are there enough weird people in
the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)
Would Craig Venter (Luciano Benetton)
come to work for us?
Axiom: Never hire anyone without an aberration in their
background!
“I would like to think we could
attract students with green
hair. We will take pink and
blue and orange hair, too.”
Shirley Tilghman, Princeton
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
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
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
HR Folks: YOU – not
“marketing” - “OWN” THE “BRAND PROMISE”!
(If you wish.)
Brand Inside
Brand Talent+: The Education Fiasco
Losing the War to
Bismarck
“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would
be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating
‘grade-level motor skills.’ ”
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I
reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being
identified by the group as a ‘closet artist.’ The point is: Every school I visited was was participating
in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
“Our education system is a second-rate, factory-style organization, pumping out
obsolete information in obsolete ways. [Schools] are simply not
connected to the future of the kids they’re responsible for.”
Alvin Toffler, Business 2.0 (09.00)
J. D. Rockefeller’s General Education Board
(1906): “In our dreams people yield themselves with perfect
docility to our molding hands. … The task is simple. We will organize
children and teach them in a perfect way the things their fathers and mothers are
doing in an imperfect way.”John Taylor Gatto, A Different Kind of Teacher
An Unnatural Way to “Learn”
“Every time I pass a jailhouse or school, I
feel sorry for the people inside.”
Jimmy Breslin, 07.11.2001, on “summer school” in NYC [“If they haven’t learned in the winter, what are they going to remember from days
when they should be swimming?”]
Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in
featureless rooms … sort children into rigid categories by the use of fantastic measures such as
age-grading, or standardized test scores … train children to drop whatever they are occupied with
and to move as a body from to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving them of
private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist that every moment of time be filled with low-
level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
Doing Stuff that Matters!
“During the first years of life, youngsters all over
the world master a breathtaking array of
competences with little formal tutelage.”
Howard Gardner, The Unschooled Mind
“Education, at best, is ecstatic. At its best, its most unfettered, the moment of learning is a moment of delight. This
essential and obvious truth is demonstrated for us every day by the
baby and the preschool child. … When joy is absent, the effectiveness of the
learning process falls and falls until the human being is operating hesitantly,
grudgingly, fearfully.”
George Leonard, Education and Ecstasy [1968]
The Learner’s Manifesto
The brain is always learning.Learning does not require coercion.
Learning must be meaningful.Learning is incidental.
Learning is collaborative.The consequences of worthwhile learning
are obvious.Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
U.C. Ed Dean Walter Karp: “From the first grade to the twelfth, from one coast to the other,
instruction in America’s classrooms is almost
entirely dogmatic. Answers are ‘right’ and answers are
‘wrong,’ but mostly answers are short.”
Frank Smith, Insult to Intelligence
Most important 3 letters:
Why?
Tom’s Edu3M
Manifesto**Manifesto for Education in the 3rd Millennium
Education3MLearning is a normal state.Children are learnavores.
Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]
We learn at different rates.We learn in different ways.
Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real
world” standards.
Education3M
We learn most/fastest/most completely when we are passionate about what we are learning and it
matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/
Learning by Internship.Classrooms are abnormal places.
We need changes of pace. [Japanese recesses between each class.]
International test scores are not correlated with hours-per-year in class.
Big classes are slightly problematic. Big schools suck. Period.
Education3M
“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]
U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get to know kids as individuals.
Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3M
Our toughest “learning achievement”—mastering our native language—does not
require schools, or even competent parents. [It does require a desperate need-to-know.]
Great teachers are great learners, not imparters-of-knowledge.
Great teachers ask great questions—that launch kids on lifelong quests.
The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly
sophisticated questions—just ask a ski instructor or neurosurgeon.
Education3M
Most schools spend most of their time setting up contexts in which kids learn not to like
particular subjects. [Evidence shows that such anti-learning sticks!]
Vigorous exploration is normal … until you are incarcerated in a school.
“Bite size” education-learning is neither education nor learning.
Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3M
The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the
wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”
Schools of “education” should by and large have their charters revoked.
Education3M
“Education” must “develop in youth the capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]
Stability is dead; “education” must therefore “educate” for an unknowable, ambiguous,
changing future; thence, learning to learn & change is far more important than mastery of a
static body of “facts.”
Brand InsideReprise:
THINK WEIRD: The High Standard
Deviation Enterprise
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
“Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the
future.”Adrian Slywotzky, Mercer Consultants
“I made a note. I’m going after
[PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt.
Things are going too well.”
Sales Exec, high-tech superstar
Message: TAKE SOMEONE NEW & WEIRD TO LUNCH
TODAY OR TOMORROW. [Inundate yourself with weird.]
Tomorrow’s Organizations: Itinerant Potential Machines
TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is
routine. Failing is normal … if you’re stretching. Want to “make their bones” in “the revolution.”
Love the new technologies. Well rewarded. Don’t plan to be around 10 years from now.
TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often needed). “We
aim to change the world, and we need gifted colleagues—who well may not be on our
payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT.
Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180
degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME
HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS
AND PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?”
Appreciate “market creation” as much as or more than “market share growth.” ARE
INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS,
AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD,
FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Skilling. Case. Etc.)
ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS
FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER. Including vendors and
consultants and … especially … PIONEERING CUSTOMERS—who will “pull us into the
future.”
TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all
outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share
this (radical) vision.
POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing
things.”
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Sameness Trap
Quality Not Enough!
“While everything may be better, it is also increasingly the
same.”Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
10X/10X
Brand Outside
Strategy 1A:Use E-Commerce to
Re-invent Everything!
Dell’s OptiPlex Facility
Big Job: 6 to 8 hours.(20,000 per day)
Parts Inventory: 2 hours,
100 square feet. (Overall, 5 days vs. 50 to 90 days; target is
2.5 days)
Cisco!
90% of $20B (=$50M/day)Annual savings in service
and support from customer self-management: $550M
Secret Cisco: Community!
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)
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: 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
“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams
you could never have dreamed
before!
Brand Outside
Strategy 1B: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
“Parents, doctors, stockbrokers, even military leaders are starting to
lose the authority they once had. There are all these roles premised on access to privileged information. …
What we are witnessing is a collapse of that advantage,
prestige and authority.”Michael Lewis, next
Impact #1(?):
Healthcare
HealthCare2001
Consumerism X Demographics X
IS/Internet X Info Consolidators X Genetics & Devices
= 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
“A seismic shift is underway in healthcare. The Internet is
delivering vast knowledge and new choices to consumers—raising their
expectations and, in many cases, handing them the controls.
[Healthcare] consumers are driving radical, fundamental change.”
Deloitte Research, “Winning the Loyalty of the eHealth Consumer”
Consumer Imperatives
ChoiceControl (Self-care, Self-management)
Shared Medical Decision-makingCustomer Service
InformationBranding
Source: Institute for the Future
2. Demographics: The BOOMERS Reach 55!
Boomer World
“From jogging to plastic surgery, from vegetarian diets
to Viagra, they are fighting to preserve their youth and
defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in charge!” (4) “We’ll take no
guff from from anyone.”
(5) “We know the emperor has no clothes.”
3. The IS/Web REVOLUTION
“We’re in the Internet age, and the average
patient can’t email their doctor.”
Donald Berwick, Harvard Med School
“Without being disrespectful, I consider the U.S. healthcare
delivery system the largest cottage industry in the world. There are
virtually no performance measurements and no
standards. Trying to measure performance … is the next revolution in healthcare.”
Richard Huber, former CEO, Aetna
“As unsettling as the prevalence of inappropriate care is the enormous amount of
what can only be called ignorant care. A surprising 85% of everyday medical
treatments have never been scientifically validated. … For instance, when family
practitioners in Washington were queried about treating a simple urinary tract infection, 82
physicians came up with an extraordinary 137 strategies.”
Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson
“In health care,
geography is destiny.”
Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and
Accountability in the Information Age, Michael Millenson
CDC 1998: 90,000 killed and 2,000,000 injured
from nosocomial [hospital-caused] drug
errors & infections
“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
4. Information Consolidators: The Network Maestros
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
5. Genetics & Devices
“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)
“Recognizing that a single misspelled gene means the difference between being
poisoned and being cured was the first victory for the new
science of pharmacogenetics.”
Newsweek (06.25.01)
“There is no question in my mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-
bypass surgery
“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the
operating table. That day may come sooner than you think.”
Newsweek (06.25.01)
Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 70M uninsured. 90K killed and 2M injured p.a. in hospitals. 85% treatments
unproven. Cure depends on locale in which treated. 50% prescriptions not
work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybody’s mad and feels powerless:
docs, patients, nurses, insurers, employers, hospital administrators
and staff.
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
2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
$4.8T > Japan
9M/27.5M/$3.6T > Germany
New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
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!)
Read This: Barbara & Allan Pease’s
Why Men Don’t Listen & Women Can’t Read Maps
“It is obvious to a women when another woman is upset, while a man generally has to physically witness
tears or a temper tantrum or be slapped in he face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned
sensory skills than men.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Resting” State: 30%, 90%: “A woman knows her children’s
friends, hopes, dreams, romances, secret fears, what they are
thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes
to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,
but can never find things in fridges, cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage contributes significantly to what is
called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.
They are excellent at imitating animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
“Women don’t buy
brands. They join them.”
Faith Popcorn, 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
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
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?”
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
Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ??(272?)
0
“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
Brand Outside
Strategy 2B:
Welcome to “Old World”!
“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
Subject: Marketers & Stupidity
“It’s 18-44, stupid!”
Subject: Marketers & Stupidity
Or is it: “18-44 is stupid,
stupid!”
2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
[ Member Growth: 1987 – 1997
18 – 34: 26%35 – 49: 63%
50+: 118%Source: IHRSA]
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
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
Brand Outside
Strategy 2C:
Welcome to “Green World”!
And #3: GREEN?????: 50% to 36%: Protect Environment >
Economic Growth.
58% to 34%: Protect Plants & Animals > Preserve Private
Property Rights.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered: M, 35%; F, 47%
Source: www.pulse.org & USA Today
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
Brand Outside
Strategy 3A:
Design Matters!
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
“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)
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …
Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.
* List No. 1, 1999
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Design Transforms even the [Biggest] Corporations!
TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”
(Advertising Age)
Design “is” … WHAT & WHY I LOVE.
LOVE.
I LOVE my ZYLISS Garlic Peeler!
Design “is” … WHY I
GET MAD. MAD.
Wanted: THE DESIGNER OF MY
RADIO SHACK PHONE. Major
Reward!
Design is never neutral.
Hypothesis: DESIGN is the principal difference
between love and hate!
THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what
I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has
become a professional obsession. I – SIMPLY – BELIEVE THAT DESIGN PER SE IS
THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A
PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of
whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” …
that damn few companies put – consistently – on the front burner.
Brand Outside
Strategy 3B:
It’s the Experience!
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre & Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is
that place that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride
through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based
Leadership
The “Experience Ladder”
Experiences Services
Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
Message: “Experience” is the
“Last 80%”“Experience” applies to
all work!
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE YOU [these days] ?”
TP to Client
“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand
that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“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.]
“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!
“WHO ARE WE?”
WHAT’S OUR
STORY?
“ WHY DOES IT MATTER TO
THE CLIENT?”
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
The Leadership50
Leading in Totally Screwed
Up Times
1. Leadership Is a …
Mutual Discovery Process.
“I don’t know.”
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
2. Great Leaders on Snorting Steeds Are
Important – but Great Managers (Type I
Leadership) are the Bedrock of Organizations that
Perform Over the Long Haul.
2A. “Just One”: Great Leading = Great
Mentoring.
Goal of the Year No. 1*: Find-Develop-Mentor
ONE Extraordinary Person.
*CEO, large financial advisory firm, April 2001
3. But Then Again, There Are Times When This “Cult of Personality”
(Type II Leadership) Stuff Actually Works!
4. Find the “Businesspeople”!
(Type III Leadership)
I.P.M. (Inspired Profit
Maniac)
4A. The Golden Leadership Triangle.
The Golden Leadership 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.
5. Leadership Mantra
#1: IT ALL DEPENDS!
Renaissance Men are … a snare, a
myth, a delusion!
6. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P ,26 games. Sparky
Anderson—1 season.
7. Leaders LOVE the
MESS!
7A. Leaders Groove on
AMBIGUITY!
“Most of our predictions are based
on very linear thinking. That’s why they will
most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01
8. Leaders
DO!
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!)
8A. Leaders
Re-do.
“Sony Electronics has a well-earned reputation for persistence. The company’s first entry into a
new field often isn’t very good. But,
as it has shown in laptops, Sony will keep trying until it gets
it right.”Business Week (5/01)
8B. Leaders Are
PLAYFUL.
“You can’t be a serious innovator unless and until you are ready,
willing and able to seriously play. ‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage, Serious Play
Axiom: Never trust a “boss” with
no toys in his/her office!
9. Leaders DELIVER!
“Leaders don’t
‘want to’ win.
Leaders ‘need to’ win.”
#49
10. Leaders
FOCUS!
“To Don’t ” List
11. Leaders Win Through LOGISTICS!
The “Gus Imperative”!
12. “Leaders”
Know: ‘POWERLESS’
IS COOL!
Heart of the Matter
F2F!/K2K!/ 1@T/R.F.A.*
*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.
12A. Leaders Seed & Pursue &
Recognize (Weird) “Demos.”
L.B.I.W.D. (Leading
By Inducing Weird Demos)
The “Flypaper/Epidemic Strategy”: Trolling for would-be Revolutionary(ies). Age & rank & size of org do not matter/passion rules (Gap’s 27-yr-old; Rajat; OSHA Maine;
Anthem NH). (Hmmmm. Maybe size & rank do matter??) (“I won’t help you get promoted. I will help
you start a revolution/epidemic.”) Help the infected one(s) become “carriers;”
study epidemiology. MBSA.
12B. Get ’Em Workin’
on Projects A.S.A.P.
Quests!
13. Leaders Understand
the Ultimate Power of
RELATIONSHIPS.
13A. Leaders Say
“Thank You.”
“The deepest human need is the
need to be appreciated.”
William James
“The two most powerful things I know
in existence: a kind word and a
thoughtful gesture.”Ken Langone, CEO, Invemed Associates [from
Ronna Lichtenberg, It’s Not Business, It’s Personal]
14. Leaders Wire the Joint!
Winners wire. Losers are
slaves to rank.
15. Leadership
Is Improv!
16. Leaders Trust in
TRUST!
Credibility!
16A. Leaders Don’t Scapegoat.
17. Leaders Are
Natural EMPOWERMENT
FREAKS!
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts on almost
every measure”Title, Special Report, Business Week, 11.20.00
18. Leaders FORGET!/
Leaders DESTROY!
“Good management was the most powerful reason [leading firms] failed to
stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would
provide their customers more and better products of the sort they wanted, and because
they carefully studied market trends and systematically allocated investment capital to
innovations that promised the best returns, they lost their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
19. BUT … Leaders Have to Deliver, So They Worry
About “Throwing the Baby Out with the
Bathwater.” [Life’s a Bitch…]
“Damned If You Do, Damned If You Don’t, Just Plain
Damned”Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)
20. Leaders …
HONOR THE USURPERS … in Their Organizations!
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
21. Leaders
HANG OUT WITH
FREAKS!
The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
22. Leaders Make [Lotsa] Mistakes –
and MAKE NO BONES ABOUT IT!
“Fail faster. Succeed sooner.”
David Kelley/IDEO
22A. Leaders Make BIG MISTAKES!
22B. Leaders Honor Mistakes & Create
“Blame-free ‘Cultures.’ ”
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
23. Leaders Set DESIGN SPECS.
Richard’s rules! (Innovative, high quality, affordable, cheeky)
24. Leaders Know When to
CHALLENGE (BURN) Design Specs!
“The ‘chump-to-champ-to-chump
cycle’ used to be three generations. Now it’s
about five years.”Bill McGowan
24A. Leaders Love to CREATE NEW MARKETS. Leaders
Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.”
“Acquisitions are about
buying market share. Our challenge is to create markets.
There is a big difference.” Peter Job, CEO, Reuters
25. Leaders Don’t Create “Followers”:
THEY CREATE LEADERS!
Brand You, Big Time!
I AM AN ARMY OF
ONE
26. When It Comes to
TALENT … Leaders Always Swing fore the
Fences!
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
27. Leaders “Win Followers Over”
WHAT AN IDIOT: “Instead of employees being in the driver’s
seat, now we’re in the driver’s seat.”
PJ: “Coaching is winning
players over.”
28. Leaders have MENTORS.
29. Leaders LOVE RAINBOWS – for Pragmatic Reasons.
“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
29A. Leaders Pursue
Poets!
“Expose yourself to the best things humans have
done, and then try to bring those things into
what you’re doing.”Steve Jobs
30. Leaders “Manage” Their
EVP.
EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
31. Leaders Know “It’s My Fault.”
32. Leaders
LOVE the New Technology!
“Believe in the Internet … MORE
THAN EVER.”Andy Grove, Cover quote, Wired (June 2001)
33. Leaders Out Their
PASSION!
“A leader is a dealer in hope.”
Napoleon
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
34. Leaders Know: ENERGY BEGETS ENERGY!
BZ: “I am a … DISPENSER
OF ENTHUSIASM!
”
35. Leaders Know It’s ALL SALES ALL THE
TIME.
Sales2001
36. Leaders
Give … RESPECT!
“It was much later that I realized Dad’s secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a
bishop or a college president. He was seriously interested in who you were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
37. Leaders …
SHOW UP!
Rudy!
38. Leadership Is a Performance.
BELIEVE IT.
“You must be the change you
wish to see in the world.”
--M.G.
39. Leaders Have
a GREAT STORY!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
40. Leaders
Create BUZZ!
41. Leaders Pursue
DRAMATIC DIFFERENCE!
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: “intent to purchase” – 100%;
“unique” – 0% to 5%)
Source: Jump Start Your Busioness Brain, Doug Hall
42. Leaders Focus on the
SOFT STUFF!
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.]
43. Leaders
KNOW They Can Make a Difference!
Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
44. Leaders
LISTEN!
See Stephen!
45. Leaders
LOVE “POLITICS.”
46. Leaders SERVE.
Robert Greenleaf: Servant Leadership: A Journey
into the Nature of Legitimate Power and
Greatness
47. Leaders KNOW THEMSELVES.
Individuals (would-be leaders) cannot engage in a
liberating mutual discovery process unless they are
comfortable with their own skin. (“Leaders” who are not
comfortable with themselves become petty control freaks.)
48. Leaders Are
Graceful.
“My favorite word is grace –
whether it’s amazing grace,
saving grace, grace under
fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or
the environment.”
Celeste Cooper, designer
49.
Leaders ???:
“LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON
ROLLER BLADES”
“ ‘It’s only business, not personal’ … IT
ALWAYS IS PERSONAL.”
“Hire smart – go bonkers – have grace – make mistakes – love technology – start all
over again.”
“Leadership is the PROCESS of
ENGAGING PEOPLE in CREATING a LEGACY
of EXCELLENCE.”
50. Leaders Know
WHEN TO LEAVE!
