It is generally much easier to kill an organization than change it substantially. Kevin Kelly, Out of Control
Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 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
Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did. Financial Times/11.28.2002
The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically. Peter Drucker, Business 2.0 (08.00)
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
Forget>Learn The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock
When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Committee, answered: Im sure there are success stories out there, but at this moment I draw a blank. Mark Sirower, The Synergy Trap
Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
Survival of the Fittest Not the Fattest/John Kay/FT03.27.2003 Survival of the Fittest Not the Fattest/John Kay/FT03.27.2003 I have heard it from people who make pharmaceuticals and from people who make defense equipment. From executives in utilities and executives in advertising. Among banks and law firms... They all expect their industry to develop the way the car industry has. In an increasingly globalized marketplace, maturing industries will become steadily more concentrated. Only a small number of big companies will survive. There is one problem with these analogies. What is said about the motor industry is not true.The peak of concentration in the automobile industry was reached in the early 1950s and since then there has been a substantial decline. However you look at it, small carmakers have been steadily gaining market share at the expense of large ones. Back in the 1960s, the 10 largest carmakers had a market share of 85 percent; today it is about 75 percent. Concentration has fallen, even though weak firms have been repeatedly absorbed through mergers. As markets evolve, differentiation becomes steadily more important. Success in the motor industry comes not from size or scale, but from developing competitive advantages in operations and marketing those advantages internationally. The same is true in pharmaceuticals and defense equipment, utilities and banking, telecommunications and media.
The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
RM: A lot of companies in the Valley fail. RN: Maybe not enough fail. RM: What do you mean by that? RN: Whenever you fail, it means youre trying new things. Source: Fast Company
No Wiggle Room! Incrementalism is innovations worst enemy. Nicholas Negroponte
Just Say No … I dont intend to be known as the King of the Tinkerers. CEO, large financial services company (New York, 5-99)
3. The White Collar Revolution & the Death of Bureaucracy.
The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.
Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21 st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.Ned Desmond/Broadbands New Killer App/Business 2.0/ OCT2002
If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-sale- scanners share information on a near real- time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage. Tom Stewart, Business 2.0
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 entrée, at any size, to Worlds Best at Everything as next door neighbor
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
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!
Supposejust supposethat the Web is a new world were just beginning to inhabit. Were like the earlier European settlers in the United States, living on the edge of the forest. We dont know whats there and we dont know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesnt hold here, and uncommon sense hasnt yet emerged. David Weinberger, Small Pieces Loosely Joined
Anne Busquet/ American Express Not: Age of the Internet Is: Age of Customer Control
Amen!The Age of the Never Satisfied Customer Regis McKenna
The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead. Kjell Nordström and Jonas Ridderstråle, Funky Business
CRM has, almost universally, failed to live up to expectations. Butler Group (UK)
No! No! No! FT: The aim [of CRM] is to make customers feel as they did in the pre- electronic age when service was more personal.
CGE&Y (Paul Cole): Pleasant Transaction vs. Systemic Opportunity. Better job of what we do today vs. Re- think overall enterprise strategy.
Here We Go Again: Except Its Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3 rd ; 3.3M; 50% lower attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; happier and stay with the bank much longer. Source: The Wall Street Journal/10.21.2002
5. The PSF Solution: The Professional Service Firm Model.
Sarah: Daddy, what do you do? Daddy: Im a cost center.
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!
TP to HRMAC: You are the … Rock Stars of the Age of Talent!
(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!
Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve become more than that. We pay for ourselves, and we actually make money for the company.Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
While everything may be better, it is also increasingly the same. Paul Goldberger on retail, The Sameness of Things, The New York Times
The surplus society has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality. Kjell Nordström and Jonas Ridderstråle, Funky Business
Companies have defined so much best practice that they are now more or less identical. Jesper Kunde, Unique now … or never
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
Gerstners IBM: Systems Integrator of choice. Global Services: $35B. Pledge/99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).
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
Keep In Mind: Customer Satisfaction versus Customer Success
A little-known fact: Siemens is now the worlds largest application service provider* to the health business. Digitally stored X rays, recordkeeping, the cameras that guide surgeons in the operating theaterall run on Siemens softwareForbes/09.16.2002 *E.g.: Siemens is giving Health South an all-digital hospital of the future.
Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ Solutions/ Customer Success.
7. A World of Scintillating/ Awesome/ WOW Experiences.
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
Club Med is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new me. Source: Jean-Marie Dru, Disruption
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
Its All About EXPERIENCES: Trapper to Wildlife Damage-control Professional Trapper: <$20 per beaver pelt. WDCP: $150/problem beaver; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ/05.21.2002
Car designers need to create a story. Every car provides an opportunity to create an adventure. … The Prowler makes you smile. Why? Because its focused. It has a plot, a reason for being, a passion. Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): Only Words … Story Adventure Smile Focus Plot Passion
Bob Lutz: I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation. Source: NYT 10.19.01
Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of physical products to choose between. Jesper Kunde, Unique now … or never [on the excellence of Nokia, Nike, Lego, Virgin et al.] Jesper Kunde
DREAM: A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be. Gian Luigi Longinotti-Buitoni
The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the buzz, the hype, the cult. Source: Gian Luigi Longinotti-Buitoni
9. The [Mostly Ignored] Soul of Experiences: Design Rules!
All Equal Except … At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace. Norio Ohga
We 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 meaning of design. Design is the fundamental soul of a man-made creation. Steve Jobs
Hypothesis: DESIGN is the principal difference between love and hate!
THE BASE CASE: I am a design fanatic. Though not artistic, I love cool stuff. 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 another one of those things that damn few companies put – consistently – on the front burner.
Message (?????): Men cannot design for womens needs.
Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuitionits female. Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
Step No. 1: NOTEBOOK POWER! [Start recording the awesome & the awful]
User … STOP BLAMING YOURSELF! (Don Norman/ Design of Everyday Things )
Executive Vice President, Stomping Out Unnecessary Bullshit
Ninety percent of what we call management consists of making it difficult for people to get things done. – P.D.
First Steps: Beauty Contest! 1.Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. 3. Re-invent! 4. Repeat, with a new selection, every 15 working days.
We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies
Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs. Source: Jean-Marie Dru, Disruption
1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD 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
Brand = You Must Care!Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about. Tom Chappell, Toms of Maine
Joe J. Jones 1942 – 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDNT LET HIM!
Characteristics of the Also rans* Minimize risk Respect the chain of command Support the boss Make budget *Fortune, article on Most Admired Global Corporations
14. Re-inventing the Individual: Brand You/ You Inc./ Free Agent Nation (Or Else.)
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 SurvivalSkillsKit2002 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
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
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)
Invent. Reinvent. Repeat. Source: HP banner ad
We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years. Ed Michaels, War for Talent
Message: Some people are better than other people. Some people are a hell of a lot better than other people.
Why focus on these late teens and twenty- somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young. The Economist [12/2000]
Where do good new ideas come from? Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines. Nicholas Negroponte
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 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
Okay, you think Ive gone tooooo far. How about this: DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?
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
Deviants, Inc. Deviance tells the story of every mass market ever created. What starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there … way out there. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
A great idea always comes from one persons mind, someone who is, by definition, local. If you place 10 people in Brussels to conceive a European [ad/marketing] campaign, youll get nothing. Source: Jean-Marie Dru, Disruption
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
Talents Big Two Rules GREAT Finance Dept. = GREAT Football Team DIFFERENCES Among Cello Players = DIFFERENCES Among Hotel GMs
16. Brand Talent+: Addressing the Education Fiasco
At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training. Richard Rosecrance, The Rise of the Virtual State
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
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 grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor skills. Jordan Ayan, AHA!
How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a closet artist. The point is: Every school I visited was participating in the suppression of creative genius. Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fools Guide to Surviving with Grace
Ye gads: Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, hes actually found a negative correlation. It seems that school- related evaluations are poor predictors of economic success, Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on. Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
17. THINK WEIRD … the HVA/ High Value Added Bedrock.
THINK WEIRD: The High Standard Deviation Enterprise.
We are crazy. We should do something when people say it is crazy. If people say something is good, it means someone else is already doing it. Hajime Mitarai, Canon
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: Future- defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. Adrian Slywotzky, Mercer Consultants
If you worship at the throne of the voice of the customer, youll get only incremental advances. Joseph Morone, President, Bentley College
These days, you cant succeed as a company if youre consumer led – because in a world so full of so much constant change, consumers cant anticipate the next big thing. Companies should be idea- led and consumer- informed. Doug Atkin, partner, Merkley Newman Harty
*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 categories. (The billion- dollar problem.) Source: Advertising Age 01.21.2002/BofA Securities
Ways to Raise a Purple Cow Think small. One vestige of the TV- industrial complex is a need to think mass. If it doesnt appeal to everyone, the thinking goes, its not worth it. Think of the smallest conceivable marketand describe a product that overwhelms it with remarkability. Go from there. Source: Seth Godin, Fast Company (02.2003)
HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: What these times call for is more creative and breakthrough reengineering of product and service benefits, but we dont train people to think like that. The way marketing is taught across business schools is far too analytical and data- driven. Weve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs. In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea. Businessworld/04Nov2002/Why Is Marketing Not Working?
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
Top-performing Companies Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable Jeffrey Sonnenfeld, Yale School of Management
Corporate consciousness is predictably centered around the mainstream. The best customers, biggest competitors, and model employees are almost invariably the focus of attention. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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: 11½ Ideas for Promoting, Managing, and Sustaining Innovation Bob Sutton
Successful Businesses Dozen Truths: TPs 30 Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the Bullshit that Marks Normal Industry Behavior. 5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Dont Get It. 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. Reward Excellent Failures. Punish Mediocre Successes. 11. Courage to Stand Alone on Ones Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power.
91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women)
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.Popcorn
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!) Paco Underhill
How Many Gigs You Got, Man? Hard to believe … Different criteria Every research study weve done indicates that women really care about the relationship with their vendor. Robin Sternbergh/ IBM
Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to womens needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)
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
Senses Vision: Men, focused; Women, peripheral. Hearing: Womens discomfort level I/2 mens. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women
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
Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK)
Initiate Purchase Men: Study facts & features. Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women
Women werent comfortable in our stores. So I figured out where they would be comfortablemost likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have furniture, not fixtures. Above all, I didnt want it to be girlie. John Hoke, designer, Nike
Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold Faith Popcorn
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
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
War has broken out over your home-improvement dollar, and Lowes has superpower Home Depot on the defensive. Its not-so- secret ploy: Lure women. Forbes.com
Home Depot is still very much a guys chain. But women, according to Lowes research, initiate 80 percent of all home- improvement purchase decisions, especially the big ticket orders like kitchen cabinets, flooring and bathrooms. We focused on a customer nobody in home improvement has focused on. Dont get me wrong, but women are far more discriminating than men, says CEO Robert Tillman, 59, a Lowes lifer. Forbes.com
Mattel Sees Untapped Market for Blocks: Little GirlsHeadline, WSJ/04.06.02 Last year more than 90% of Lego sets purchased were for boys. Mattel says Ellowith interconnecting plastic squares, balls, triangles, squiggles, flowers and sticks, in pastel colors and with rounded cornerswill go beyond Legos linear play patterns.
Women dont buy brands. They join them. EVEolution
Honey, are you sure you have the kind of money it takes to be looking at a car like this?
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
Ad from Furniture /Today (04.01): MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that Way Presenting Experts: M = 16 ; F = ?? (94% = 272)
Notes to the CEO --Women are not a niche; so get this out of the Specialty Markets group. --The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.) --If you dip your toes in the water, what makes you think youll get splashy results? --Bust through the walls of the corporate silos. --Once you get her, dont let her slip away. --Women ARE the long run! Source: Martha Barletta, Marketing to Women
1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Womens Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity No. 1.
Customer is King: 4,440 Customer is Queen: 29 Source: Steve Farber/Google search/04.2002
50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $610B healthcare spending/ 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old
Households headed by someone 40 or older enjoy 91% ($9.7T) of our populations net worth. … The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Marketers attempts at reaching those over 50 have been miserably unsuccessful. No markets motivations and needs are so poorly understood. Peter Francese, founding publisher, American Demographics
Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year- olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market? Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Age Power will rule the 21 st century, and we are woefully unprepared. Ken Dychtwald, Age Power : How the 21 st Century Will Be Ruled by the New Old
No : Target Marketing Yes : Target Innovation & Target Delivery Systems
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-teachers- leaders) 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!
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 Seth Godin
Leaders dump the ones who brung em Nokia, HP, 3M, PerkinElmer, Corning, etc.
21. 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)
1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: intent to purchase – 100%; unique – 0% to 5%) Source: Jump Start Your Business Brain, Doug HallDoug Hall
26. Leaders … Make Their Mark / Leaders … Do Stuff That Matters
I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.Richard Branson
CEO Assignment2002 (Bermuda): Please leap forward to 2007, 2012, or 2022, and write a business history of Bermuda. What will have been said about your company during your tenure?
Ah, kids: What is your vision for the future? What have you accomplished since your first book? Close your eyes and imagine me immediately doing something about what youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
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!
32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.
Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations. G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
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.]
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
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.)
The Gospel According to TP: Upon having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.)