Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/11.30.2001 There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate. Steve Case
Uncertainty: We dont know when things will get back to normal. We no longer know what normal
means. Ambiguity: BMcC: (1) Hierarchy vs. Network organization. (2) NWO = Doctrine as center of gravity/source of motivation;
distributed support & decisionmaking;largely self-organizing; outside the military sphere. From: To: Weapon v.
Weapon Org structure v. Org structure Our military structure today is essentially one developed and
designed by Napoleon. Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift 1800s: > prior 900 years 1900s: 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 1 day 2001 = Years trade in 1949, years FEX in 1979,
years global calls in 1984. 1 day London FEX in 2001 = 30X years output in UK goods & services. Source: Charles Handy, The Elephant and the Flea Structure Part I: Brand Inside
Part II: Brand Outside Part III: Brand Leadership 7 Rules for Leading/THRIVING in a Recession+ 1. Its ALREADY too late. 2. Show up & tell the truthCREDIBILITY rules. 3. Kill with KINDNESS. 4. Sharp pencils are imperativebut dont forget that
the CUSTOMER & our TALENT & RISKY INVESTMENTS are still our long-term Bread & Butter. 5. Everythings different, everythings the sameits the NEW ECONOMY, more than ever, stupid! 6. Use the trauma to mount the bold initiatives you should have long before mounted: Flux = OPPORTUNITY. 7. Were in a War of Organizational Modelsfrom retail
to the Pentagon. IDEAS MATTER MOST. Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership Forces @ Work I The Destruction
Imperative! Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 are in 87 F100; the 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of 57 were alive in 97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market Are all CEOs bozos? Was Darwin a
Message*: genius, or what? So, Boss, whaddaya say about
risk taking now? *And all that (2 of 100; 12 of 500) was in relatively placid times. CEOs appointed after 1985 are 3X more likely to be fired than CEOs appointed before 1985 Warren Bennis, MIT Sloan Management Review
Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and
because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership. Clayton Christensen, The Innovators Dilemma A pattern emphasized in the case studies in this book is the degree to
which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign
of impending death. Jim Utterback, Mastering the Dynamics of Innovation 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 1990s was a decade of multiple revolutions political, economic, technologicalthat changed so thoroughly the way we live that the
past no longer seems a good guide to the future (in fact the past seems precisely the wrong guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the militaryin a way that could reinvigorate American political, diplomatic and
economic leadership in the world for decades to come. Bill Owens, Lifting the Fog of War Japans Science Gap * Rice farming culture: Uniqueness suppressed. Govt control of R & D. Promotion based on seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. bold leaps.
Lack of competition and critical evaluation (peer review). Syukuro Manabe: What we need to create is job insecurity rather than security to make people compete more. *Hideki Shirakawa, Nobel laureate, chemistry
The [New] Ge Way DYB.com The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
The secret of fast progress is inefficiency, fast and furious and numerous failures. Kevin Kelly
Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against. Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors
Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of sustainable
advantage after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition. Rich DAveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering Jane Jacobs:
Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.
Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Im sure there are success stories
out there, but at this moment I draw a blank. Committee, answered: Mark Sirower, The Synergy Trap 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. [Natures] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for mergings 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] Terror cells are superb, malevolent examples of what Information Age organizations can be. So how do you kill
them? Soldiers used to idolize Napoleon or Patton. Network-centric warriors admire Wal*Mart for using information superiority to crush rivals. [The Navys John] Arquilla calls for small, fast, informationenabled units. Americas Secret Weapon, Business 2.0 (DEC2001)
Brand Inside Brand Org: Lean, Linked, Internet-driven, Virtual White Collar
Revolution! 108 X 5 vs. 8X1 = 540 vs. 8 (-98.5%)
The Pincer 5 1 Destructive entrepreneurs/ Global Competition . 2 White Collar Robots .
3 THE INTERNET! . [E.g.: GM + Ford + DaimlerChrysler] 4. Global Outsourcing [E.g.: India, Mexico]
5. Speed!! Automation+ 40 75% of what we do: expert decision rules!
IBMs Project eLiza! Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computergenerated robots will take over the world. Stephen Hawking, in the German magazine Focus The Pincer 5 1 Destructive entrepreneurs/ Global Competition .
2 White Collar Robots . 3 THE INTERNET! . [E.g.: GM + Ford + DaimlerChrysler]
4. Global Outsourcing [E.g.: India, Mexico] 5. Speed!! 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.
TP to NAPM: You are the Rock Stars of the B2B Age!
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%++) BMWs Designworks/USA: >50% from outside work
eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM (1) Translate ALL departmental activities into discrete
W.W.P.F. Products. (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining Centers of Excellence are retained & leveraged to the hilt!
Brand Inside The Heart of the Value Creation Revolution: PSF Unbound! 09.11.2000: HP bids
$18,000,000,000 for PricewaterhouseCoopers consulting business! These days, building the best server isnt enough. Thats 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 Were getting better at [Six Sigma] every day. But we really need to think about the customers profitability. Are customers bottom lines really benefiting from what we provide them?
Bob Nardelli, GE Power Systems UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers) New Springs = Turnkey Collections. Flexible sourcing. Packaging.
Merchandising. Promotion. Systems & Site mgt. Omnicom: 57%
(of $6B) from marketing services We are a real estate facilities consulting organization, not just an interior design firm.
Jean Bellas, founder, SPACE (from SMPS Marketer) Who was the number one employer of architecture school grads in the U.S. last year?
Everybody is going after the same space! Problem: Assetless
Company John Bryan, CEO, on selling all Sara Lees manufacturing Dont 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, wed be held hostage by outside people. Brian Spear, Director of Pharmacogenomics, Abbott Labs NC2001: Furniture company
outsources all mfg. to Asian firm. Asian firm gets financing, buys NC company. Hmmm!!?? The move toward outsourced
manufacturing represents an obvious opportunity for contract manufacturers [such as Flextronics: $93M to $15B, 93-00], but its also a potential boon to product innovation. The future of gadget-making is not about making gadgets; its about imagining them. Someone else makes the imaginary real. All that money that used to go to fund
infrastructure is going into design and innovation, says Flex CEO Michael Marks. Wired/11.2001 Markets to networks. Hierarchies to networks. Sellers and buyers to suppliers and users. Ownership to access. (Age of Access.) Marginalization of physical property. Weightless
economy. Protean generation. Outsourcing of everything. Franchising of everything. (Business format franchising.) (Leasing DNA.) Everything is a service/platform for services delivery. (Give away the goods, charge for the services. VALUE = THE RELATIONSHIP. Share of market to Share of customer.) Every business is show business. Source: Jeremy Rifkin, The Age of Access
Brand Inside Brand You: Distinct or Extinct
2010 Demographics: By 2010, full-time workers will be in the minority Source: MIT study (28August2000)
New World of Work < 1 in 10 F500 #1: Manpower Inc. Freelancers/I.C.: 16M-25M Temps: 3M (incl. CEOs & lawyers) Microbusinesses: 12M-27M Total: 31M-55M Source: Daniel Pink, Free Agent Nation
The fundamental unit of the new economy is not the corporation, but the individual. Tasks arent assigned and controlled through a stable chain of command but are carried out autonomously by e-lancers
independent contractors - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment. Thomas Malone and Robert Laubacher
If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed, and that increasingly means you wont get paid much either. Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. loyalty) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor
Intense Appetite for Technology Groveling Before the Young Embracing Marketing Passion for Renewal Sams Secret #1!
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?
youll 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 didnt 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) E-LEARNING: 2M students in U.S. 4,000 colleges
& universities offer. Target: Developing world. E.g.: U. of Melbourne & McGill, part of U21 (with Thompson Learning), expect 100K students by 2010mostly Asians. Armys $500M contract with PWC (eArmyU)includes degrees @ 24 colleges. Mixed models: Fuqua9 to 11 weeks in residence over 2 years. Dentist gets law degree25 to 30 hours per week. IBM trained
200K online in 2000saved $350M. Tricks: Small classes, required student involvement at U. of Phoenix Online (76% growth in Y2K.). Source: Business Week (12.03.2001) 26.3 3 Weeks in May
Training & Prep: 187 Work: 41 (Other: 17) 1% vs.
367% Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why dont
businesspeople do it [very much]? We are not serious! Conclusion:
Invent. Reinvent. Repeat. Source: HP banner ad The time seems appropriate to rethink the notions of self and
identity in this rapidly changing age Tara Lemmey, Project LENS, past president Electronic Frontier Foundation In Store: International Equality, Intranational Inequality The new organization of society implied by the triumph of individual autonomy and the true equalization of
opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20th century.
James Davidson & William Rees-Mogg,The Sovereign Individual Great Great Granddad: Pushes the plow. Great Granddad: Horse now walks ahead of the plow. Granddad: Farm Hand to Factory Factotum.
Dad: Factory Factotum to White Collar Cubicle Slave. And You: V.A. Player (Brand You) or else! America[ns] The Beautiful Re-inventors
Ben F. Ralph W.E. Dale C. N.V.P. Werner E./EST Tony R./Coals Dude Stephen
Brand You, Big Time! I AM AN ARMY OF ONE When was the last time you asked,
What do I want to be? Sara Ann Friedman, Work Matters Distinct or Extinct.
Message: Brand Inside Redefining the Work The WOW Project
Itself: Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec
Language matters! Wow! BHAG! Takes your breath away! Astonish me! / S.D.
Build something great! / H.Y. Immortal! / D.O. Intimidate their [users] imaginations Wheres the revolution? J Allard,
on the Xbox Lets make a dent in the universe. Steve Jobs Learn not to
be careful. Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa) Your Current Project? 1. Another days work/Pays the rent.
4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!) Brand Inside
WOW Projects for the Powerless: Getting Started a Personal Perspective Topic: Boss-
free Implementation of STM /Stuff That MATTERS! Worlds Biggest Waste Selling Up
THE IDEA: Model F4 Find a Fellow Freak Faraway
Heart of the Matter F2F!/K2K!/ [email protected]/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-WereOver 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! Rule 2: Youre never so powerful as when you are powerless! Rule 3: Every small project contains the entire enterprise DNA! (Please.)
THE TOOL Prototyping Mania! Think about It!? Innovation = Reaction to the Prototype
Michael Schrage He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd
THE Process Building Buzz! Boss-free Selling of a WOW! Idea Get a Zany [WOW!] Idea/ Shop it with a coupla good pals. Surface [using your network] a list of [operational]
folks who might be interested in playing. Call, visit and choose a coupla prospects. Engage the prospects [they must own it]. Concoct a rough plan and a prototype schedule. Move forward [Ready. Fire! Aim.]. Keep on recruitin. Get the Test Customer to recruit some buddies for Round #2 tests [Meanwhile Customer #1 expands
program] Get going with Round #2 prototypes Start conscious buzz building [Let the word of successful tests trickle out] Have the line dudes put on a demo for, say, a coupla cool regional bosses Etc.
Etc. Have the growing Network of Converts initiate a Major Program Proposal Etc. Etc. BOTTOM LINE
The Enemy! Joe J. Jones 1942 2001 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM!
The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low
and we reach it. Michelangelo 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 It AINT about the science. Its NEVER about the science. Its ALWAYS
about the PASSION for the IDEA. Message to scientists: Fact: 1000s of PLAUSIBLE drug candidates. Winners based [mostly] on desire &
tenacity of Project Manager/Team In a long and honorable career, a Ph.D. scientist in a pharmaceutical house is not likely statistically to
experience a success. Pharmaceutical Exec TP: Rubbish! Statistically speaking, Churchill
shouldnt have been able to fend off Hitler. Statistically speaking, DeGaulle shouldnt have been able to revive the French. Statistically speaking, Jefferson & Adams & Hamilton shouldnt have been able to create America.* * Statistically speaking, Pfizer or no Pfizer,
aint none of us gettin out of this alive. I wonder Will one
of you be awoken some December morning in Stockholm by candle-carrying kids? Charles Handy on the alchemists: Passion
was what drove these people, passion for their product or their cause. If you care enough, you will find out what you need to know. Or you will experiment and not worry if the experiment goes wrong. Passion as the secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. Sadly, passion is not a word often heard
in the elephant organizations, nor in schools, where it can seem disruptive. Assigning people to projects they feel passionate about. If you think Rule #1(And there are no other rules):
something is really important, follow your heartit energizes you and you give your best performance. Thats how you get scientists on a rollwhat for athletes is called being in the zone. Lina Echeverria, fiber optics research director, Corning
Walsh: Heightshrimp. Arm okay. Quicknessokay. Speed slow. ZealPLANET CLASS. People cant measure your heart. They look at
my size, my arm strength and knock me for thatJeff Garcia. Source: USA Today, 11.23.2001 the PREDATOR! AF General John Jumper
IF YOU ARE NOT PREPARED TO BE FIRED OVER YOUR BELIEFS YOU ARE WORKING ON THE WRONG PROJECT -- TP
If anyone can do it, John [Rebus], Ive always had confidence in your sheer pig-headedness and inability to listen to your senior officers. you can.
from Ian Rankin, The Falls 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 customers 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 customers org. (Relationships at all levels &
functions.) 7. Wire the home teams 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 moneyheres exactly how.) (IS THIS A PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)
10. Will involve anybodyincluding mortal enemiesif 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. (Its 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 vendors 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 thats sometimes better than a lousy win.)
17. Think those who regularly say Its 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 upstartsthe real enemy. 20. Seek several cool customerswholl 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 ENOTES.) (Most are for little things.) (50% of those notes are sent to those in our company!) Remember birthdays. Use
the word we. 23. When you look across the table at the customer, think religiously to yourself: HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED? 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple!
Brand Inside Starting a Wow Projects Epidemic: Demo mania! New Hall of Fame!
Ordering Systemic Change is a Stupid Waste of Time! Premise: Demos! Stories!
Heroes! L.B.I.W.D. By Inducing Weird Demos) (Leading Demo = Story
A key perhaps the key to leadership is the effective communication of a story. Howard Gardner, Leading Minds: An Anatomy of Leadership
MB S A!* *Managing By Story-ing Around/David Armstrong
Leaders aiming to change their world troll for & identify palpable heroes, who executed palpable projectsthen they point to these people and say to the
masses, See, here it is, done by one of your own. (And then they deep-dip a few of those heroes to demo their seriousness.) Boss Advice I: The Poster Kids Strategy Chat up the organization. Develop a tentative list of Pioneers. Hang with those Pioneers, discover the
stuff Ive long wanted to do/Encourage them to Do it! Begin to showcase their developing results [with your public stamp of approval]. Dip deep[ish] and early - promote a Pioneer into the [New] Establishment. Incorporate the Pioneers work into your Vision Chatter/Welcome ALL aboard!
Boss Advice II: The Flypaper Strategy Event Marketing: Idea Fair/Internal Tradeshow/Bragfest. Or: Seminar Series, with strange outsiders/insiders (not the usual suspects); intense Web-based follow-up and community creation (Neighborhoods of Common Interest). Play Fund, around a topic of importance. Small-ish
grants. Easy application process. Short-ish timeframes. (Gerstner @ American Express re AI.) Scholarships (not the usual suspects). Sabbatical funds (contest?). Placement on customer or supplier project teams (not the usual suspects). Each VP a V.C.: Portfolio of high-risk investments
from all across the company. Silicon Valley Success [Failure?] Secrets Pursuit of risk: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well;
1 hits the jackpot Source: The Economist Freaks need mentors/ guardians!
T.A.: 3 Summary Dont try to change the culture! Do create flypaper which
attracts Mavericks & Pirates! Let the new culture (which is already lurking around you) find you! Publicize, at the appropriate moment, the New Hall of Fame; help the New Culture Adherents create & nurture Community! Brand Inside
Brand Talent: The Great War for Talent When land was the scarce resource, nations battled over it. The same is
happening now for talented people. Stan Davis & Christopher Meyer, futureWEALTH Yikes: What worries me is that I cant see why any ambitious young person would want to join my company, or stay here
for long if they did join. My most important job is to change that as fast as I can.CEO, giant multinational, to Charles Handy The Talent Ten 1. Obsession
P.O.T.* = All Consuming *Pursuit of Talent The leaders of Great Groups love talent and know where to find it. They revel in
the talent of others. Warren Bennis & Patricia Ward Biederman, Organizing Genius Sports Franchise GM Model 24/7:
2. Greatness Only The Best! From 1, 2 or youre 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 changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased
Macadam at Georgia-Pacific 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 twentysomethings? 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 mlange, 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
ones place! Womens Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure rationality; inherently flexible; appreciate cultural diversity Source: Judy B. Rosener, Americas 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 days events? Who is better at keeping in touch with others? Source: Selling Is a Womans 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 Its 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 Ive gone tooooo far. DO ANY OF YOU SUFFER FROM TOO MUCH TALENT? How about this:
63 of 2,500 top earners in F500 8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med faculty; 7% deans Source: Susan Estrich, Sex and Power Encouraging signs: CEO, HP. CEO,
eBay. CEO, Avon. CEO, Mirant. CEO, Xerox. President, Pharmaceutical Group, Pfizer. President, Chevron Products. CoCEO, Kraft. President, PepsiCo. CEO, Ogilvy & Mather. COO, Enron Americas. COO, Colgate-Palmolive. President, Southwest Airlines.
8. Weird The Cracked Ones Let in the Light! The Cracked Ones Let in the Light Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels. David Ogilvy enough weird people in Are there
the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01) Would Craig Venter
(Luciano Bennetton) come to work for us? 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 Microsoft looks for people with bandwidth that is, people who have interests in diverse fields, with a high degree of conceptual skills and a high tolerance for ambiguity, complexity
and paradox. Super-logical bit-heads (developers) work in perfect fusion with artistically sensitive designers. [Per one exec], Designers are invariably female, are talkative, live in lofts, have vegetarian diets and wear round objects on their ears. Developers are invariably male, eat fast-food, and dont talk except to say Not true. LMD (06.2000)
9. Opportunity Make It an Adventure! H.R. to H.E.D. ???
Human Enablement Department Titles! Manager Human Capital
Assets or Manager Manager HRIS to Employee Marketing* *IHRIM.link (2-3.2001) 10. Leading Genius
We are all unique! Beware Lurking HR Types One size NEVER fits all. One size fits
one. Period. 48 Players = 48 Projects = 48 different success measures MantraM3
Talent = Brand Whats your companys 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.
Brand Inside Brand Talent+: The Education Fiasco FES/NOV2001: New Work. New World. New
Education. The Three Must Meet. TP Mood Anger. Despair.
Hopelessness. 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 childlet alone our childreceive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for
demonstrating grade-level motor skills. grade in art at such a young age? Jordan Ayan, AHA! How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from
their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a closet artist. The point is:
Every school I visited was participating in the suppression of creative genius. Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fools Guide to Surviving with Grace J. D. Rockefellers General Education Board (1906): In our dreams people
yield themselves with perfect docility to our molding hands. The task is simple. We will organize children and teach them in a perfect way the things their fathers and mothers are doing in an imperfect way. John Taylor Gatto, A Different Kind of Teacher
An Unnatural Way to Learn Schools Kafka-like rituals: enforce sensory deprivation on classes of children held in featureless rooms sort children into rigid
categories by the use of fantastic measures such as age-grading, or standardized test scores train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon keep children under constant surveillance, depriving them of private time and space 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 lowlevel 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 The Learners 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
Toms Edu3M Manifesto* *Manifesto for Education in the 3rd Millennium Education3M Learning is a normal state.
Children are learnavores. Prodigious feats of learning are common as dirt. [Watch a H.S. QB studying game film.] We learn at different rates. We learn in different ways. Boys and girls learn [very] differently. In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit. Learning for tests is utterly insane. There are numerous rigorous evaluation schemes, of which testing is but oneand abnormal, by real world standards. Education3M We learn most/fastest/most completely when we
are passionate about what we are learning and it matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/ Learning by Internship. Classrooms are abnormal places. We need changes of pace. [Japanese recesses after each class.]
International test scores are not correlated with hours-per-year in class. Big classes are slightly problematic. Big schools suck. Period. Education3M All thisthe right stufffits 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 languagedoes not require schools, or even competent parents. [It does require a desperate need-to-know.]
Great teachers are great learners, not impartersof-knowledge. Great teachers ask great questionsthat launch kids on lifelong quests. The world is not about right & wrong answers; it is about the pursuit of increasingly sophisticated questionsjust 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 antilearning 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 vigorat exactly the wrong time. There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily attract cool dudes & dudettes. Schools of education should by and large have their charters revoked. Education3M Stability is dead; education must
therefore educate for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static body of facts. Education must develop in youth the capabilities for engaging in intense concentrated involvement in an activity. [James Coleman, 1974.]
[Hint: It doesnt.] [Hint: Understatement.] Brand Inside Reprise: THINK WEIRD: The High Standard Deviation Enterprise
Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: Futuredefining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. Adrian Slywotzky, Mercer Consultants
COMPETITORS: The best swordsman in the world doesnt need to fear the second best swordsman in the world; no, the person for him to be afraid of is some
ignorant antagonist who has never had a sword in his hand before; he doesnt do the thing he ought to do, and so the expert isnt prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot. Mark Twain
Employees: Are there enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01) Suppliers: There
is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees Elliott Masie, on desirable eLearning vendors: I want a sandbox partner, someone who will openly say, This is
not the last word; we dont know exactly where were going. The Top Creators of Shareholder Value Accept depressed earnings
for several quarters to support hot product Expense rather than capitalize new venture costs Bonuses without caps Source: Fortune (09.17.201) Message: TAKE SOMEONE
NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.] WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you
uncomfortable, even those you dislike. (2) Hire people you (probably) dont need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them.
(9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Dont try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your companys success. Bob Sutton, Weird Ideas that Work: 11 Ideas fro Promoting, Managing and Sustaining Innovation The
GM/VC leadership. model of Renewal = The Weird 10 = The High S.D. Enterprise/Individual Pioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios S.D./Weirdness Index] Divide & Conquer/Sell-by [Lessons from the Bees, Sir Richard, Gary H.] Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway] Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs &
Promote Fast & Cherish Six Sigma Talent/Appoint a Weird Board Weed Un-weird [One Sigma Talent, etc.] Hang out with Weird [Univ. of Weird]/Lunch with Weird/ Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania] Sense of Humor [Rhapsodize Over Thine Cool Failures!] Re-enforce a Culture of Disrespect/PassionatePiracy
Logic: Cut from 1,000 brands to 500 brands, for efficiencys sake. Need 10% p.a. growth in reduced # of brands to get guaranteed corporate growth of 5%. (AND YOU DONT GET AVERAGE GROWTH IN EVERY BRANDDUH.) Hence, 10% across-the-board growth will mostly come from 40% growth in small # of brands (Pareto: 80/20 rule; blah, blah, blah).
Axiom: 40% growth will only come from highrisk betsand accompanying failures--across the portfolio. Hence, the VC [GM] model. Tomorrows Organizations: Itinerant Potential Machines
TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal if youre stretching. Want to make their bones in the revolution.Love the new technologies. Well rewarded. Dont plan to be around 10 years from now.
TALENT POOL PLUS. Seek out and work with worlds best as needed (its often needed). We aim to change the world, and we need gifted colleagueswho well may not be on our payroll. BRASSY-BUT-GROUNDED-LEADERSHIP. Say I
dont knowand then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENT but dont expect the co. to be around forever. Will scrap pet projects, and change course 180 degreesand 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 TODAYS VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Skilling. Case. Etc.)
ALLIANCE MANIACS. Dont 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 dont share this (radical) vision. POTENTIAL MACHINES-ORGANISMS. Dont
know whats coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own way of doing things. Brand Inside NewGov2001
WE NEED IDEAS! There will be more confusion in the
business world in the next decade than in any decade in history. And the current pace of change will only accelerate. Steve Case BMcC: (1) Hierarchy vs.
Network organization. (2) NWO = Doctrine as center of gravity/source of motivation; distributed support & decisionmaking;largely self-organizing; outside the military sphere. Our military structure today is essentially one
developed and designed by Napoleon. Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff From: To:
Weapon v. Weapon Org structure v. Org structure Ideas > Leadership
NO: Good govt YES: EFFECTIVE Govt (in altered/ambiguous times) A Plea for virtual
[RESPONSIVE] government Agile. WALLS MUST
FALL! The W.O.G. (Work-of- Insta/ Targeted WPTs (WOW
Government): (B.H.A.G.) Project Teams (with
Experiments rule! Failures rule! Talent
matters! New Heroes/ Hall of Fame IS/IT to the Max!
Streamlin ed procurement (esp. IS/IT) Bill Owens Lifting the Fog of War
Case: The 1990s was a decade of multiple revolutions political, economic, technologicalthat changed so thoroughly the way we live that the past no longer seems a good guide to the future
(in fact the past seems precisely the wrong guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the militaryin a way that could reinvigorate American political, diplomatic and economic leadership in the world for decades to come. Bill Owens, Lifting the Fog of War
Our military is very good at doing things as they are supposed to be done, but it is not always good at changing the way things ought to be done. Highly professional militaries can be very good at maintaining the institutions traditions, mores and cultures in the face of rapid and important change.
Equating professionalism with automatically defending the status quo can be disastrous. This is the mindset that drives service loyalties toward narrow parochialism, and congeals organizations into brittle shells. We end up ignoring opportunities that could actually offer higher military effectiveness. Bill Owens, Lifting the Fog of War
How dare you. If you dont support us, our opponents will take advantage and use this to cut the force. CNO staffer [Flag officer] to Bill Owens, 6th Fleet Commander
Mike [Boordas] self-avowed priority was to preserve and protect the size, budget and structure of the U.S. Navyhis Navy irrespective of any other consideration because he deeply believed that the Navy was the core of Americas military capability. My
view over the years had shifted toward the conviction that we in the Navy need to implement major changes in order to become more jointto work better and more closely with the other services. Bill Owens, Lifting the Fog of War Many flaws remainedflaws not from poor
performance, but from an ingrained command hierarchy and an outmoded concept of war that had taken root during World War II and then during the cold war. Desert Storm was a joint military operation in name rather than in fact. The battlefield was divided among service components. The fiefdoms existed not only because of tradition, service rivalry and the egos of the commanders; they
were also there because of technological limitations. We did not have the communications capability to do it differently. Bill Owens, Lifting the Fog of War Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next
strike. Bill Owens, Lifting the Fog of War By combining powerful computer technology and other modern information-based systems we could make a revitalized, leaner military force that is designed to outsee,
outmaneuver and outfight any foe. --Bill Owens, Lifting the Fog of War Part I: Brand Inside Part 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 cant! 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! Dells OptiPlex Facility Big Job: 6
to 8 hours. (80,000 per day) Parts Inventory: 100
square feet. Cisco! 90% of $20B (=$50M/day) Annual savings in service and support from customer
self-management: $550M (P.S.: C.Sat e >> C.Sat h) Secret Cisco: Community! Customer Engineer Chat Rooms/Collaborative Design ($1B free consulting) (45,000
customer problems a week solved via customer collaboration) X1,000,000 TowTruckNet.com Webcor. Construction. Web site
for each project. Instant info on status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage. Source: Business Week (09.00) Welcome to D.I.Y. Nation: Changes in business processes will emphasize
self service. Your costs as a business go down and perceived service goes up because
customers are conducting it themselves. Ray Lane, Oracle Psych 101: Strongest Force on Earth? My need to be in
perceived control of my universe! WebWorld = Everything Web as a way to run your businesss innards Web as connector for your entire supply-demand chain Web as spiders web which re-conceives the industry Web/B2B as ultimate wake-up call to
commodity producers Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entre, at any size, to Worlds 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, bottleneckedcommunication, six-layer organization. Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the number of people they employ all of that is wrong for running an ebusiness. Ray Lane, Kleiner Perkins Jargon Bath!
Bureaucracy free Systemically integrated Internet intense Knowledge based Time and location free Instantly responsive Customer centric Mass customization enabled.
Translation Bureaucracy free = Flat org, no B.S. Systemically integrated = Whole supply chain tightly wired/ friction free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever
Instantly responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements Supply Chain 2000: When Joe Employee at Company X launches his
browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs world customers, other employees, distributors, suppliers, manufacturers, consultants. The browser that is, the portal resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers dont
have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system. Red Herring (09.2000) Magic! [Inter]networked Markets meet
[Intra]networked Workers Source: The Cluetrain Manifesto: The End of Business as Usual The Real New Economy Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on
the board stays the same but the capabilities of the pieces randomly change. Knights now move like bishops, bishops like rooks Technology does that. It rubs out boundaries that separate industries. Suddenly new competitors with new capabilities will come at you from new directions. Lowly truckers in brown vans become geeky logistics experts.
Business 2.0 (9-10.2001) The Real New Economy Only a few times in history have interaction costs radically changedone was the railroads, then the telegraph
and telephone. Were going through another one right now. Jeff Skilling, Enron Read It Closely: We dont sell
We sell speed. insurance anymore. Peter Lewis, Progressive Case:
CRM UBIQUITY! Its the cars, not the tires, that squeal: NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McDs, gas stations and parking lots
next. OnStar (GM/1.5M). Plus: black boxes, GPS (the case of the $450 ticket), CA smog offenders. CRM has, almost universally, failed to live up to
expectations. --Butler Group (UK) FT: The aim [of CRM] is to make customers feel as they did in the preelectronic age when service was more personal. No! No! No!
Rebuttal: (1) Service sucked in the pre-electronic age. (2) NewGen believes in the screen! (So do I.) One Persons Opinion TP to reporter:
Service is MUCH better! Would you go back to bank tellers and phone operators? Value that I place on a smile: 3 on a scale of 10. Value I place on fast & accurate digital response: 11 on a scale of 10!!
-5% defections = +25% to +85% profit. Lose 15% to 35% p.a. 69% defect as a result of lousy sales or service experience. (Q:But is this the point???? A: Yes. No.)
M. Rogers: CGE&Y (Paul Cole): Pleasant Systemic Opportunity. Better job of what we do today vs. Rethink overall enterprise strategy.
Transaction vs. Message CRM: Madness = 600 CRM vendors. ???: Do it all or do something. Past: over-invest in lowvalue customers. Idea: better experience, not off-load work to customer. Relationship = f(dialogue
& knowledge & duration). Key: new attitudes, DESTRUCTION of functional barriers to info & action. Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much
practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast. Lewis Carroll
Inet allows you to dream dreams you could never have dreamed before!
Brand Outside Strategy 1B: Embracing an e-Led Age of Self-Determination
Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. What we are witnessing is a collapse of that advantage,
prestige and authority. Michael Lewis, next Anne Busquet/ American Express Not: Age of the Internet Age of
Customer Control Is: Amen! The Age of the
Never Satisfied Customer Regis McKenna Impact #1: Healthcare
HealthCare2001 Consumerism X Demographics X IS/Internet X Info Consolidators X Genetics & Devices = YIKES!
1. Consumerism (Patientcentric Healthcare) A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumersraising 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
Choice Control (Self-care, Self-management) Shared Medical Decision-making Customer Service Information Branding Source: Institute for the Future
Consumerism: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention. Info availability (disease, health, docs, support groups, outcomes). Self-care (chronic disease). High expectations (genetics, etc.) Boomers (see below).
Savior for the Sick vs. Partner for Good Health Source: NPR/VPR 08.15.00 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) Were/Im in charge! (4) Well take no guff from anyone. (5) We know the emperor has no clothes. IS/Web
3. The REVOLUTION Were in the Internet age, and the average patient cant email their doctor. Donald Berwick, Harvard Med School
In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont talk to each other.
Boston Globe (09.30.2001) Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. To compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. Bill Owens, Lifting the Fog of War
By combining powerful computer technology and other modern information-based systems we could make a revitalized, leaner military force that is designed to outsee, outmaneuver and outfight any foe. --Bill Owens, Lifting the Fog of War
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 Geography Is Destiny E.g.: Ft. Myers 4X Manhattanback surgery. Newark 2X New Haven prostatectomy. Rapid City SD 34X Elyria OHbreast-conserving surgery. VT, ME,
IA: 3X differences in hysterectomy by age 70; 8X tonsillectomy; 4X prostatectomy (10X Baton Rouge vs. Binghampton). Breast cancer screening: 4X NE, FL, MI vs. SE, SW. (Source: various) Geography Is Destiny Often all one must do to acquire a disease is
to enter a country where a disease is recognizedleaving the country will either cure the malady or turn it into something else. Blood pressure considered treatably high in the United States might be considered normal in England; and the low blood pressure treated with 85 drugs as well as hydrotherapy and spa treatments in Germany would entitle its
sufferer to lower life insurance rates in the United States. Lynn Payer, Medicine & Culture Practice variation is not caused by bad or ignorant doctors. Rather, it is a natural consequence of a system that systematically tracks neither its processes nor its outcomes, preferring to presume that good facilities, good
intentions and good training lead automatically to good results. Providers remain more comfortable with the habits of a guild, where each craftsman trusts his fellows, than with the demands of the information age. Michael Millenson, Demanding Medical Excellence CDC 1998: 90,000 killed
and 2,000,000 injured from nosocomial [hospital-caused] drug errors & infections Quality of care is the problem, not managed care.
Institute of Medicine (from Michael Millenson, Demanding Medical Excellence) RAND (1998): 50%, appropriate preventive care. 60%, recommended treatment, per
medical studies, for chronic conditions. 20%, chronic care treatment that is wrong. 30% acute care treatment that is wrong. In a disturbing 1991 study, 110 nurses of varying experience levels
took a written test of their ability to calculate medication doses. Eight out of 10 made calculation mistakes at least 10% of the time, while four out of 10 made mistakes 30 % of the time. Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson Patient by patient, problem by problemdrug reactions, hospital caused infectionsSalt Lake Citys LDS Hospital has attacked treatmentcaused injuries and deaths. One of the secrets of LDSs success is a custombuilt clinical computer system that may serve as a national model for how
to save patient lives. Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson 4. Information Consolidators: The Network Maestros
America has twice as many hospitals and physicians as it needs. Med Inc., Sandy Lutz, Woodrin Grossman & John Bigalke The future of hospitals is
murky. A combination of technological advances, managed care, and changes in Medicare reimbursement policy means that the underlying demand for inpatient services will continue to fall. Institute for the Future
Virtual health care webs force providers to focus on their areas of excellence and to invest in areas where they can generate a sustainable competitive advantage. Healthcare.com: Rx for Reform, David
Friend, Watson Wyatt Worldwide WebMD & assigns) (or heirs 5. Genetics &
Devices Recognizing that a single misspelled gene means the difference between being poisoned and being cured was the first victory for the new science
of pharmacogenetics. Newsweek (06.25.01) 2X every 6 months. Genetic data:
Source: FT, 11.27.2001 Pharmacogenomics could fundamentally change the nature of drug discovery and marketing, rendering obsolete the pharmaceutical industrys practice of spending vast amounts of time and
money to craft a single medicine with mass-market appeal. The Industry Standard (05.28.01) Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22) Barrie James, Pharma Strategy Consulting: Were
moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for the industry. The implications for existing business models are devastating. Allen Roses, SVP Genetic Research, GlaxoSmithKline: minibuster. Rob Arnold, Euro head of life sciences, PWC: Once you start dealing with minority treatments, small biotechs who are more nimble
and dont need $500-million-a-year drugs to make money could be at a real advantage. BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs dont work well for about half the patients for whom they are prescribed, and experts believe genetic differences are part of the reason. The
technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies it could limit the market for some of their blockbuster products that many of them are resisting its widespread use. The Wall Street Journal (06.18.2001)
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. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why
Companies That Are Built to Last Underperform the Market 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) There is no question in my mind that the future of heart surgery is in robotics. Dr. Robert Michler, OSU Med Center, upon the FDAs approval of robotic partialbypass surgery
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status: $1.3T. 30M-70M uninsured. 90K killed and 2M injured p.a. in hospitals. 85% treatments unproven. Cure depends on locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybodys mad and feels
powerless: docs, patients, nurses, insurers, employers, hospitals administrators and staff. Message: (1) An unparalleled time imagination
for and bold action. (2) A time of unprecedented opportunities. (3) A time of unprecedented risk. Brand Outside
Strategy 2A: Women Rule! ????????? Home Furnishings 94% Vacations 92% Houses 91%
Consumer Electronics 51% Cars 60% (90%) All consumer purchases 83% Bank Account 89% Health Care 80% ????
80% Riding Lawnmowers 2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills
53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed $4.8T > Japan 9M/27.5M/$3.6T > Germany
New golfers 37% Basketball 13.5M 1 in 27 (70) 1 in 3 (96) 1874? 1874 Jock Strap
1977 Jogbra 1977 ... 25K 1996 42 M Yeow! 1970 1%
2002 50% OPPORTUNITY NO.
1!* [* No shit!] Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented
Men: Rights Women: Responsibilities FemaleThink/ Popcorn Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons. He simply wants the transaction to
take place. Shes interested in creating a relationship. Every place women go, they make connections. Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They usually dont like asking where things are.
Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly hes 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 Peases Why Men Dont Listen & Women Cant Read Maps
It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned
sensory skills than men. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Resting State: 30%, 90%: A woman knows her childrens 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 Dont Listen & Women Cant 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 Dont Listen & Women Cant Read Maps Female hearing advantage
contributes significantly to what is called womens intuition and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldnt despair. They are excellent at imitating animal sounds.
Barbara & Allan Pease, Why Men Dont Listen & Women Cant 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 dont buy They join them. brands. EVEolution
What If What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners? What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to
help women re-enter the workforce with todays skills? EVEolution Not!! Year of the Woman
Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy
Culture 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. Id 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 womens power is clear to me; but it is not my bailiwick. My game is haranguing business leaders about my fact-based conviction that womens increasing power leadership skills and purchasing power is the strongest and
most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Alto resident THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters Psssst! Wanna see
my porn collection? If we are single, they say we couldnt catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldnt keep him.
If we are widowed, they say we killed him. Kathleen Brown, on the joys of female political candidacy Stupid! Ad from Furniture /Today (04.01): MEET WITH THE EXPERTS!: How
Retailings Most Successful Stay that Way Presenting Experts: M = F= ??
16; (94% = 272) The Furniture Industry doesnt understand BRANDING doesnt understand FASHION doesnt understand WOMEN
doesnt understand SPEED & RESPONSIVENESS & VALUE-ADDED SERVICES doesnt understand EXCITING RETAIL PRESENTATION & EXPERIENCE MARKETING. And is run by old, conservative white guys who dont even understand what they dont understand.
Prescription SHE is the Consumer. (PERIOD.) SHE is the Brand. (PERIOD.) 75% women designers* (*Men CANNOT design for women. PERIOD.) 75% women reps.
Cool retail spaces in high-rent districts ( la Ethan Allen). Match furniture with accessories i.e., create an experience. FOCUS ON RELATIONSHIPS-FOR-LIFE, not transactions.
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! Brand Outside
Strategy 2B: Welcome to Old World! Age Power will rule the 21 century, and we are woefully
unprepared. st Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Subject: Marketers & Stupidity
Its 18-44, stupid! Subject: Marketers & Stupidity 18-44 is stupid, stupid!
Or is it: 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 $$$$$$$$$$$$ Im in charge! 50+ $7T wealth (70%)/$2T annual income
50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury $610B healthcare spending/74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old Stupid! No: Target Marketing Yes:
Target Innovation & Target Delivery Systems Brand Outside Strategy 3A: Design Matters!
Unconventional [Design] Messages Not about ... Lumpy Objects! Not about ... $79,000 objects The I.D. [International Design] Forty*
Airstream Alfred A. Knopf Apple Computer Amazon.com Bloomberg Caterpillar CNN Disney FedEx Gillette IBM Martha Stewart New Balance Nickelodeon Patagonia The New York Yankees 3M Etc. * List No. 1, 1999
Unconventional [Design] Messages Not about ... Lumpy Objects! Not about ... $79,000 objects
Design Transforms even the [Biggest] Corporations! TARGET the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)
All Equal Except At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only thing that differentiates one product from another in the
marketplace. features. Norio Ohga We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. But
to me, nothing could be further from the Design is the fundamental soul meaning of design. of a man-made creation. Steve Jobs
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!
Im just going to come right out and say it: Ericsson lost $2.3B on mobile phone because its products are ugly. handsets last year
Peter Martin (FT 04.24.01) Design is never neutral. DESIGN is the
principal difference between love and hate! Hypothesis: THE BASE CASE: I am a design fanatic. Personally, though not artistic, Im 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 doesnt. Furthermore, its one of those things that damn few companies put consistently on the front burner. Message: Men cannot design for womens needs.
Period. Philippe Starck Today the problem is not how to produce more to sell more. The fundamental question is
that of the products right to exist. And it is the designers right and duty to question the legitimacy of the product. Philippe Starck My main task when I was artistic director at Thompson for
four years: to make the company virtuous. Not because there was a desire to do evil, but because they had simply forgotten their purpose in lifeto be of service. Philippe Starck
I invented the slogan Thompson: From Technology to Love. That completely repositioned the problem. Because now we were saying that technology wasnt an end in itself, but just a meansand that the real goal was what had always been there, the original priority, humanity, whose ultimate criterion is love.
That connects back to the idea of the friendly object, the good object. Philippe Starck [At Thompson] I outlawed the word consumer in all company meetings, and insisted it be replaced by the words my friend, my wife, my daughter, my mother, or myself. It doesnt
sound the same at all, if you say: It doesnt matter, its shit, but the consumers will make do with it, or if you start over again and say, Its shit, but it doesnt matter, my daughter will make do with it. All of a sudden, you cant get away with it anymore. There is an enormous task to be done with this kind of symbolic repositioning. Philippe Starck
Today, 80 per cent of objects are unnecessarily macho. Yet it is plain: The intelligence of a truly modern society must be feminine. Apart from a machine pistol, I cant think of many objects
which actually need to be extravagantly masculine. Philippe Starck Message: Design is the wellspring of
branding. Great design takes guts and is soul deep. Compare 10 order forms or data fields at a Web site. Save great and awful junk mail. Go on a <$10 shopping spree.
Pay attention to signage. (And instruction manuals.) Start a notebook. NOW. Design-Minded Company: Credo Design matters! Everywhere! The Brand Promise rules! Everywhere!
All can answer: WHO ARE WE? HOW ARE WE DISTINCT? Words such as beauty & grace & emotion & connection & Wow & adventure are okay twixt 9 and 5. Non-Wow doesnt cut it. Anywhere! We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis
on the arts, is part of this. Diversity-R-Us! Design-Minded Company: Operating Philosophy All work is the product of Hot Teams of peers. Hierarchy is minimal, and usually a distraction. We understand that disrespect is the ultimate in respect in crazy times. The Work Matters! Wow or bust!
All work reflects design-mindfulness & the brand promise. Promotion comes immediately if the work is Wow. NO BULLSHIT. We keep our word to our teammates and other partners. Integrity = No.1 outcropping of design-mindfulness. We are a business. Results matter!
Brand Outside Strategy 3B: Its 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 thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager
Experience: Rebel Lifestyle! What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. Harley exec, quoted in Results-Based
Leadership The Experience Ladder Experiences Services Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese
(experience economy) $100.00 Message: Experience is the Last 80% P.S.: Experience applies to all
work! 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service
economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00
I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation. (2) Focus groups Bob Lutz: (1)
can be misleading. (What did you like about that movie you just saw? Was there enough violence? Was the car chase long (3) Design must be Priority No. 1.
enough?) Source: NYT 10.19.01 Brand Outside Strategy 4:
BRAND POWER! WHO ARE YOU [these days] ? TP to Client Most companies tend to equate branding with the companys marketing. Design a new marketing
campaign and, voila, youre 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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others.
that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies Brand Promise Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which
we are UNIQUE to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct us/them differences. (5) Try results on your teammates. (6) Try em on a friendly Client. (7) Big Enchilada:
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 Dont Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug Hall 2 Questions
How likely are you to purchase this new product or service? (95% to 100% weighting by execs) How unique is this new product or service? (0% to 5%*) *No exceptions in 20 years Doug Hall, Jump Start Your Business Brain
Message: Branding is B.S. longterm if the product is not supercalifragilisticexpealidocious (e.g., see sections on Design & Experience above) The Heart of Branding
WHO ARE WE? WHATS OUR STORY? DO THE
HOUSEKEEPERS & CLERKS BUY IT? [ARE YOU V-E-R-Y SURE?] EXACTLY HOW ARE WE DRAMATICALLY
DIFFERENT? WHY DOES IT MATTER TO THE CLIENT? EXACTLY HOW DO I PASSIONATELY
CONVEY THAT DIFFERENCE TO THE CLIENT Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
The Leadership50 Leading in Totally Screwed Up Times 1. Leadership Is a Mutual
Discovery Process. Leaders-Teachers Do Not Transform People! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostlycaveat: they
dont engage unless theyre 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-teachersleaders) had never dreamed existedand 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! I am inalterably opposed to organization change, empowerment, motivation. The goal: to awaken the latent talent already within, by providing opportunities worthy of the
individuals investment of her or his most precious resources time and emotional commitment. 1A. Leaders Cede Control. I dont
know. 1B Not to Screw Things Up . Leaders Try
Ninety percent of what we call management consists of actions that make it difficult for people to get things done. P.D.
2. Great Leaders on Snorting Steeds Are Important but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over
the Long Haul. 25/8/53 Whoops: Jack didnt have a vision! 2A. Just One: Great
Leading = Great Mentoring. T.A.: 3
FindDevelop-Mentor Goal of the Year No. 1*: ONE Extraordinary Person. *CEO, large financial advisory firm, April 2001
2B. Great Leaders are Great V.C.s. Basically [Omnicoms John] Wren makes aggressive bets on entrepreneurs and
gives them tremendous autonomy, on the assumption that the risk-taking will pay off in new ideas, connections, businesses, and, yes, revenues and profits. Omnicom operates like a venture-capital firm, says Sir Martin Sorrell [of WPP].
Fortune (09.17.2001) 3. But Then Again, There Are Times When This Cult of Personality (Type II Leadership) Stuff Actually Works!
A leader is a dealer in hope. 4. Find the Businesspeople! (Type III Leadership)
I.P.M. (Inspired Profit Mechanic) 4A. All Organizations Need the Golden
Leadership Triangle. The Golden Leadership Triangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit
Mechanic. Project Team Golden Triangle (1) Champion-Maniac. (2) Implementer-Pol. (3) Schedule & Budgets Fanatic.
5. Leadership Mantra #1: IT ALL DEPENDS! Renaissance Men
are a snare, a myth, a delusion! 6. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0. Walter Alston1AB. Tony LaRussa 132 games, 6 seasons. Tommy LasordaP, 26 games. Sparky Anderson1 season.
7. Leaders LOVE the MESS! 7A. Leadership Is Improv!
Rudy! Duct Tape Rules! Andrew Higgins, who built landing craft in WWII, refused to hire graduates of engineering schools. He believed that they only teach you what you cant do in engineering school. He started off with 20 employees, and by
the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, Andrew Higgins won the war for us. He did it without engineers. Stephen Ambrose/Fast Company If things seem under control,
youre just not going fast enough. Mario Andretti 7B. Leaders Groove on
AMBIGUITY! Most of our predictions are based on very linear thinking. Thats 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 wellearned reputation for persistence. The companys first entry into a
new field often isnt very good. But, as it has shown in laptops, Sony will keep trying until it gets it right. Business Week (5/01) If Microsoft is good at anything, its
avoiding the trap of worrying about criticism. Microsoft fails constantly. Theyre eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power theyve gained in other markets to enforce their standard.
Seth Godin, Zooming 8B. Leaders Are PLAYFUL. You cant 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 Never trust
a boss with no toys in his/her office! Axiom: 9. BUT Leaders Know When to
Wait. Tex Schramm: The too hard box!
Axioms: (1) Pick your battles carefully. (2) Sometimes inaction promotes sorting out & preserves options.
10. Leaders DELIVER! 10A. Leaders Are Optimists.
[Ronald Reagan] radiated an almost transcendent happiness. Half-full Cups: Lou Cannon, George (08.2000)
11. BUT Leaders Are Realists/Leaders Win Through LOGISTICS! The Gus
Imperative! 12. Leaders FOCUS! To
Dont List Leaders dump the ones who brung
em Nokia, HP, 3M, PerkinElmer, Corning, Enron, etc. Cortez! 13. Leaders DESIGN
SPECS. Set JackWorld/ [email protected]: (1) Neutron
Jack. (Banish bureaucracy.) (2) 1, 2 or out Jack. (Lead or leave.) (3) Workout Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK! 14. Leaders
Send V-E-R-Y Clear Signals About Design Specs! Ridin with Roger: What have
you done to DRAMATICALLY IMPROVE quality in the last 90 days? 15. Leaders Trust in
TRUST! Credibility ! 15A. Leaders Infuse the Dreaded-All Important
Evaluation Process with CREDIBILITY! 25 = 100 Talent-minded leaders: (1) treat the evaluation process strategically; (2) invest enormous amounts of
personal time in it (to give it credibility & amass data); (3) depend on dialogue & plain English, not obscure, standardized instruments. 16. Leaders Understand the Ultimate Power
of RELATIONSHIPS. Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their
status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings. Judy Rosener, Americas Competitive Secret 16A. Leaders Wire the Joint!
Winners wire. Losers are slaves to rank. TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list? Who enjoys a recap to the days events? Who is
better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson 16B. Leaders Are Natural
EMPOWERMENT FREAKS! 17. Leaders Know Women Roar/ Women Rule.
AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure Title, Special Report, Business Week, 11.20.00
Womens 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, Americas Competitive Secret 17A. Oh Yeah and Women Buy All the
Stuff $4.8T > Japan 9M/27.5M/$3.6T > Germany 18. Leaders LOVE RAINBOWS for
Pragmatic Reasons. Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mlange, 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
18A. Leaders Pursue Poets! Gardners MI7: Logical- mathematical, Linguistic, Spatial, Musical,
Bodily-kinesthetic, Interpersonal, Intrapersonal. Expose yourself to the best things humans have done, and then try to bring those things into
what youre doing. Steve Jobs 19. Leaders FORGET!/ Leaders DESTROY!
Forget>Learn The problem is never how to get new, innovative thoughts into your mind, but how to get the old
ones out. Dee Hock 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 Innovators Dilemma
The [New] Ge Way DYB.com 20. BUT Leaders Have to Deliver, So They Worry About Throwing the Baby Out with the
Bathwater. Damned If You Do, Damned If You Dont, 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) 21. Leaders HONOR THE USURPERS. Saviors-in-Waiting
Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
22. Leaders HANG OUT WITH FREAKS! Message: TAKE NEW & WEIRD TO LUNCH
SOMEONE TODAY OR TOMORROW. [Inundate yourself with weird.] 23. Leaders Make [Lotsa] Mistakes and MAKE NO
BONES ABOUT IT! Sams Secret #1! Fail faster. Succeed sooner.
David Kelley/IDEO 24. Leaders Make BIG MISTAKES! Reward excellent failures. Punish
mediocre successes. Phil Daniels, Sydney exec (and, de facto, Jack) 24A. Leaders Honor Mistakes & Create Blame-free Cultures.
Winning By Acknowledging Failures Wernher Von Braun, the Redstone missile engineer who confessed & the bottle of champagne. Award to the sailor on the Carl Vinsonfor reporting the lost tool. Amy Edmonson
& the successful nursing units with the highest reported adverse drug events. Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected Accountability: YES! Never-ending witch hunts:
NO! 25. Leaders Know that THERES MORE TO LIFE THAN LINE EXTENSIONS. Leaders Love to CREATE NEW MARKETS.
No one ever made it into the Business Hall of Fame on a record of line extensions. Acquisitions are about buying market share. Our
challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters The Top Creators of Shareholder Value Accept depressed earnings
for several quarters to support hot product Expense rather than capitalize new venture costs Bonuses without caps Source: Fortune (09.17.201) 26. Leaders Pursue
DRAMATIC DIFFERENCE! 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: intent to purchase 100%; unique 0% to 5%) Source: Jump Start Your Business Brain, Doug Hall
26A. Leaders Make Their Mark / Leaders Do Stuff That Matters Today the problem is not how to produce more to sell more.
The fundamental question is that of the products right to exist. And it is the designers right and duty to question the legitimacy of the product. Philippe Starck 27. Leaders Push Their
Organizations W-a-y Up the Value-added/ Intellectual Capital Chain 09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers Consulting business! 28. Leaders LOVE the New Technology!
100 square feet Inet allows you to
dream dreams you could never have dreamed before! 28A. Needed? Type IV Leadership:
Technology Dreamer-True Believer The Golden Leadership Quadrangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic. (4)
Technology Dreamer-True Believer 29. When It Comes to TALENT Leaders Always Swing for the Fences!
Message: Some people are better than other people. Some people are a helluva lot
better than other people. 30. Leaders Dont Create Followers: THEY CREATE LEADERS!
Brand You, Big Time! I AM AN ARMY OF ONE 31. Leaders Win
Followers Over WHAT AN IDIOT: Instead of employees being in the drivers seat, now were in the drivers seat. Coaching
is winning players over. PJ: 32. Leaders Manage Their
EVP/Internal Brand Promise. MantraM3 Talent = Brand
EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent 33. Leaders Know Its
My Fault. You recruited em. You hired em. You trained em. You evaluated em. You motivated em.
33A. Leaders Dont Scapegoat / Allow Scapegoating. 34. Leaders have MENTORS.
Upon having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* The Gospel According to TP:
(*Therefore, thy needs one faithful compatriot to lay it on with no jelly.) 35. Leaders Out Their PASSION!
! ! ! !
! ! ! !
Create a cause, not a business. G.H.: 36. Leaders Know: ENTHUSIASM
BEGETS ENTHUSIASM! BZ: I am a DISPENSER OF ENTHUSIASM!
36A. Leaders Know that Culture Change Takes But a Minute. No Bull! What Do I Do First?
One Minute Excellence!* *Thomas Watson Culture Change is not Corporate. Culture Change is not a Program. Culture change does not take Years.
Culture Change does not start Today. Culture Change starts Right Culture Change Now! Lives in the Moment! Culture Change is
Entirely in Your Hands! 37. Leaders Know Its ALL SALES ALL
THE TIME. If you dont LOVE SALES find another life. (Dont pretend TP:
youre a leader.) Sales2001 38. Leaders LOVE POLITICS.
If you dont LOVE POLITICS find another life. (Dont pretend TP: youre a leader.)
38A . But Leaders Also Break a Lot of China
If youre not pissing people off, youre not making a difference! 39 .
Leaders Enjoy Leading. Warrens Whoops Moment.
40. Leaders Give RESPECT! It was much later that I realized Dads 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
It is impossible to claim that all good teachers use similar techniques: some lecture nonstop and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers
share one trait: a strong sense of personal identity infuses their work. Dr. A is really there when he teaches. Mr. B has such enthusiasm for his subject. You can tell that this is really Prof. Cs life. Parker Palmer, The Courage to Teach 41. Leaders
SHOW UP! Rudy! Leaders are living individuals whom employees smell, feel, touch their presence.
#49 P.S. 5,000 miles for a 5 min. meeting.
Mark McCormack: 42. 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, Its Not Business, Its Personal] 43. Leaders
LISTEN! See Stephen! (Empathetic Listening) 43A Leaders
. Are Curious. 43B. Leaders Are Great
Learners. TP/08.2001: The Three Most Important Letters WHY?
44. Leadership Is a Performance. BELIEVE IT. You must be the change you wish to see in the
world. --M.G. It is necessary for the President to be the nations No. 1 actor.
FDR 45. Leaders Have GREAT STORY! a
A key perhaps the key to leadership is the effective communication of a story. Howard Gardner
Leading Minds: An Anatomy of Leadership Early in my career in the law I learned he who has the best story wins.
that JQ Adams/A Hopkins to T Joadson/M Freeman Stories of identity narratives that help individuals think about and feel who they are, where they come from, and where they
are headed constitute the single most powerful weapon in the leaders arsenal. Howard Gardner, Leading Minds: An Anatomy of Leadership Leaders dont just make products
and make decisions. Leaders make meaning. John Seeley Brown 46. Leaders Seed & Pursue &
Recognize (Weird) Demos. 46A. Leaders Create BUZZ!
L.B.I.W.D. By Inducing Weird Demos) (Leading Leaders aimed on changing their world identify
palpable heroes, who executed palpable projectsthey point to these people and say to the masses, See, here it is, done by one of your own. (And then they deep-dip a few of those heroes to demo their seriousness.)
47. Leaders Focus on the SOFT STUFF! Soft Is Hard
Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TPs final words: CYNICISM SUCKS.] 48. 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.)
48A. Leaders LAUGH! 48B. Leaders Take Breaks. 48C. Leaders Are
Graceful. My favorite word is grace grace, saving grace, grace under fire, Grace Kelly. How we live
whether its amazing contributes to beauty whether its how we treat other people or the environment. Celeste Cooper, designer Rodales on Grace
elegance charm loveliness poetry in motion kindliness .. benevolence benefaction compassion beauty 49.
Leaders ??? : LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES
Hire smart go bonkers have grace make mistakes love technology start all over again. Boss Talk/WSJ Provide a simple, clear, exciting
& energizing focus. Obsess on TALENT. Speed > Perfection. (Clarity, motivation, rapid adjustment.) Leap > Line extension. (Beware me-too, perfecting yesterday.) Tell the truth. Control your calendar.
Get out of the office. Listen to customers face-to-faceat their place. Juergen Schrempp/DaimlerChrysler Digital decision making/ the danger of the deadly wish for harmony
Branding: Kevin Roberts: The great brands have mystery and sensuality. Apple is the most sensual product since the vibrator./ Tina Brown: You should be able to throw a magazine
on the floor at any page and know whose magazine it is./ The Perils of Me-too: Stephen Hardis (Eaton): Dont have your resources trapped in areas that are inherently zero-sum games with a very marginal return./ Phil Condit (Boeing):
Just doing what your competitor does is the biggest opportunity to lose money. Douglas and Lockheed built tri-jets to the identical specs and beat each other silly. Jeff Bezos: Its easy to let the inbox side of your life overwhelm you, so you become a totally
reactive person. The only remedy I know is to set aside some fraction of your time as your own. I use Tuesdays and Thursdays as my proactive days, when I try not to schedule meetings. Jeff Bezos: I'm often
encouraging people to go faster, even if it means a worse initial product. I want us to start learning. The cost of trying to avoid mistakes is huge in terms of speed. Robert Miller (Federal-Mogul), on
Turnarounds: (1) Tell the truth. Play it straight. (2) Make decisions. Dont study things to death. (3) Listen to your customers. They are usually more perceptive than you are about what needs to be done.
50. Leaders Know WHEN TO LEAVE! Thank You!