X.always MASTER PART TWO 10 MARCH 2007. Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART 2.1O March 2007 *In Search of Excellence 1982-2007.

X.always MASTER PART TWO 10 MARCH 2007

Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART 2.1O March 2007 *In Search of Excellence 1982-2007

VALUE ADDED #8

EXCELLENCE. VALUE ADDED. UP THE LADDER.

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

IBM Global Services $55B And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services* (*Integrated Systems Services Corp.): $55B

“Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. $500 billion a year Planetary Rainmaker-in-Chief! “Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” —Fortune

Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/2004

“SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank “SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank Source: Fast Company

MasterCard Advisors

“Turnkey security solutions” “Security ‘devices’” to “Turnkey security solutions” (A/C, elevators, DIY, photo shops, etc., etc.)

Home Depot Business ToolBox: Health insurance Home Depot Business ToolBox: Payroll processing. Credit card processing. Personnel paperwork. Mobile phones. Shipping. Health insurance. 12K customers (plumbers, electricians, small homebuilders, and contractors). Source: Forbes, 0918.06

g IBM UPS Xerox MasterCard GE BestBuy Gamechanging “Solutions”: Bet-the-Company IBM UPS Xerox MasterCard GE BestBuy

Flagship of BestBuy Wholesale “Solutions” Strategy Makeover. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.

Satisfaction Success Huge: Customer Satisfaction versus Customer Success

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

STUFF ‘N’ THINGS Goods Raw Materials The Value-added Ladder/ STUFF ‘N’ THINGS Goods Raw Materials

TRANSACTIONS Services The Value-added Ladder/Stuff & TRANSACTIONS Services Goods Raw Materials

OPPORTUNITY-SEEKING Gamechanging Solutions The Value-added Ladder/ OPPORTUNITY-SEEKING Gamechanging Solutions Services Goods Raw Materials

Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture- Strategic change”) Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture- Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

OPPORTUNITY-SEEKING Implemented Gamechanging Solutions The Value-added Ladder/ OPPORTUNITY-SEEKING Implemented Gamechanging Solutions Services Goods Raw Materials

VALUE ADDED #8A

“5 Damn Its” Women. PSF. Brand you. R.f.a. EXCELLENCE. ALWAYS. To The Mat: The “5 Damn Its” Women. PSF. Brand you. R.f.a. EXCELLENCE. ALWAYS.

EXCELLENCE. NECESSITY. OPPORTUNITY.

you’ve become irrelevant to your customers.” “ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that … you’ve become irrelevant to your customers.” —John Battelle/Point/Advertising Age/07.05

HRMAC Chicago: HRMAC

‘overhead.’” Sarah: “ Mom, what do you do?” Mom : “I’m ‘overhead.’”

“support function” / “cost center”/ “overhead” or … “support function” / “cost center”/ “overhead” or …

“ Rock Stars of the Age of Talent” Are you … “ Rock Stars of the Age of Talent”

EXCELLENCE. SOLVE IT. NO OPTION. PSF. (PSF++)

Managing Partner, ISInc. Department Head to … Managing Partner, IS [HR, R&D, etc.] Inc.

We pay for ourselves, and we actually make money for the company.” “Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve 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)

“Eichorn it!” Mantra: “Eichorn it!”

PSF Answer: PSF

PSF Brand You Wow! Projects Core Mechanism : “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )

(1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”) + (2) Incredible “TALENT” Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Launched on Awesome “QUESTS FOR EXCELLENCE” = (5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” & “GAME-CHANGING CLIENT SUCCESS” The New Enterprise Value-Added Equation/Mark2006 (1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”) + (2) Incredible “TALENT” Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Launched on Awesome “QUESTS FOR EXCELLENCE” = (5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” & “GAME-CHANGING CLIENT SUCCESS”

(1) The Talent: “Best Roster” of Entrepreneurial- minded Brand Yous. (2) The (Virtual) Organization: Internal or External “PSF”/Professional Service Firm working with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital” (3) The Work Product: “Game Changer”/ “Gaspworthy” WOW Projects Big Idea/“Meta”-Idea/Premier “Engine of Value Added” (1) The Talent: “Best Roster” of Entrepreneurial- minded Brand Yous. (2) The (Virtual) Organization: Internal or External “PSF”/Professional Service Firm working with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital” (3) The Work Product: “Game Changer”/ “Gaspworthy” WOW Projects

PSF Brand You Wow! Projects Core Mechanism : “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )

Series/Reinventing Work The Project 50: Fifty Ways To Transform Every “Task” Into A Project That Matters The Professional Service Firm 50: Fifty Ways To Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion And Innovation The Brand You 50: Fifty Ways To Transform Yourself From An “Employee” Into A Brand That Shouts Distinction, Commitment, And Passion

“Astonish me!” “Build something great!” “Make it immortal!” “Insanely great” (SJ) “Astonish me!” (SD). “Build something great!” (HY). “Make it immortal!” (DO) “Insanely great” (SJ)

“… but I'm having a hard time imagining 300 million Brand Yous.“ imagining 300 million Brand Yous.“ “Would you call a clerk in a purchasing department at a big insurance company "brand you"? Probably not. But what about a single Hispanic Mom, age 32, raising 3 kids in the LA area and holding 2.5 jobs to do so? I'd call her a hero, self- reliant, resilient — and a Brand You!” Posted by tom peters at 10:16 PM, November 20, 2006

Muhammad Yunus: “All human beings are entrepreneurs. When we were in the caves we were all self-employed … finding our food, feeding ourselves. That’s where human history began … As civilization came we suppressed it.... We became labor because they stamped us, ‘You are labor.’ We it.... We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006/ The natural state of economic activity is for everyone to be an entrepreneur; modern economies hide this from us and encourage us to become employees./John/ShakespearesFool, posted us to become employees./John/ShakespearesFool, posted @ tompeters.com, November 22, 2006, 9:27 PM

“The older I get, and the more I think about ‘legacy,’ the more interested I get in ‘projects’ and the less interested I am in ‘process.’ We need to liberate the human spirit. Projects do that. We strangle on %^#*ing process.” —media exec to TP, 0109.2007

Psf. Bedrock.

PSF/Professional Service Firm/Beliefs Profession: Calling/Passion to make a difference/Excellence (always) point of view: know exactly what we stand for/ “Dramatic Difference” Client: enduring, test-the-limits relationship/Trusted advisor Solution: Rock His-her World/ “wow” / implemented “Culture change”/ >>>>>> “satisfaction” PSF/Professional Service Firm/Beliefs Profession: Calling/Passion to make a difference/Excellence (always) point of view: know exactly what we stand for/ “Dramatic Difference” Client: enduring, test-the-limits relationship/Trusted advisor Solution: Rock His-her World/ “wow” / implemented “Culture change”/ >>>>>> “satisfaction”

PSF-Bedrock Profession/Calling- Excellence (always) Client/enduring, test-the- limits relationship Solution/Rock His- her World PSF-Bedrock Profession/Calling- Excellence (always) Client/enduring, test-the- limits relationship Solution/Rock His- her World

PSF-Bedrock Profession/Calling- Excellence (always) Client/trusted advisor Solution/Rock His- her World PSF-Bedrock Profession/Calling- Excellence (always) Client/trusted advisor Solution/Rock His- her World

PSF-Bedrock Profession/Calling- Excellence (always) Client/enduring, test-the- limits relationship Solution/>>>”satisfaction” PSF-Bedrock Profession/Calling- Excellence (always) Client/enduring, test-the- limits relationship Solution/>>>”satisfaction”

Mega-PSF “Solutions World”: The Mega-PSF

“Corporation” as Mega-“PSF” (Professional Service Firm*) Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm*) * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)

Brand You(S) Wow! Project(s) = PSF(S) “Corporation” as “Mega-PSF” Core Mechanism : “Game-changing Solutions” Brand You(S) (“Distinct” or “Extinct”/The Talent ) + Wow! Project(s) (“Different” vs “Better”/The Work ) = PSF(S) (Professional Service Firm “model”/The Organizing Principle ) = “Corporation” as “Mega-PSF”

Conceptual Age* Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age* (creators) *Murakami Teruyasu: “Age of Creation Intensification” Source: Dan Pink, A Whole New Mind

The “PSF35” : Thirty-Five Professional Service Firm Marks of Excellence

1. CRYSTAL CLEAR POINT OF VIEW The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight (E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small “Uneconomic” Clients with Big Aims the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’” I-banking/ Accounting/PR/Etc. has become a ‘commodity’” 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL” WORD (IDEA) “RADICAL”

Do good (excellent?!) work Make a lot of money ????? Do good (excellent?!) work Make a lot of money

Pointed Point of View!

R.POV8 R.POV8* *Remarkable Point Of View/8 Words or less/“If you can’t state your position in eight words or less, you don’t have a position.”—SG

back of a business card, “ If you can’t write your movie idea on the back of a business card, you ain’t got a movie.” —Samuel Goldwyn

11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER” HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? The PSF35: The Client Experience 11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER” HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?

It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution “The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution.”* (*E.g.: CRM failure rate/Gartner: 70%) — Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

UniCredit Group/ UniCredito Italiano* ** —3 rd party measurement —Customer-initiated measurement —Primary $$$$ incentives —“Factories” —Primary Corporate Initiative —Etc *#13 **TP/#1

18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, The PSF35: The People & The Leadership 18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as “Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters “Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills Mentoring-Team Building Skills 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views and to Infuse Different Views

28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) my message”—Gandhi) 29. Excellence+ in EXECUTION … 100.00% of the Time (No such thing as a “small sins”/World Series Ring to (No such thing as a “small sins”/World Series Ring to the Batboy!) 30. “Drop everything”/“Swarm” to Support a Harried-On the Batboy!) 30. “Drop everything”/“Swarm” to Support a Harried-On The Verge Team 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR The Verge Team 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEIL CIRQUE DU SOLEIL 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. Web (Technology) Obsession 34. BRAND/“LOVEMARK” MANIACS (Organize Around a Point of View Worth BROADCASTING: “You must be the of View Worth BROADCASTING: “You must be the change you wish to see in the world”—Gandhi) change you wish to see in the world”—Gandhi) 35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as much a place at the Head Table in a “PSF” as in a much a place at the Head Table in a “PSF” as in a widgets factory: “You can’t behave in a calm, rational widgets factory: “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic manner. You’ve got to be out there on the lunatic fringe”—Jack Welch) fringe”—Jack Welch)

28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) is my message”—Gandhi) 29. Excellence+ in EXECUTION … 100.00% of the Time 30. “Drop everything”/“Swarm” to Support a Harried-On The Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. The Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) Chiat Day, IDEO, old EDS) 33. BRAND MANIACS (Organize Around a Point of View Worth BROADCASTING) BROADCASTING) 34. PASSION! ENTHUSIASM! 35. EXCELLENCE. ALWAYS.

Counselor Trusted Advisor “PSF” Nirvana Counselor Trusted Advisor

PSF Answer: PSF

PSF + BY + WP = VA

PSF + BY + WP + DD + E = UVA

PSF BY WP DD E UVA PSF (Professional Service Firm) + BY (Brand You) + WP (WOW Projects) + DD (Dramatic Difference) + E (Excellence) = UVA (Unassailable Value-Added)

PSF Answer: PSF

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/2004

Flagship of BestBuy Wholesale “Solutions” Strategy Makeover. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.

Integrity. Quality. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation! Static/Imitative Integrity. Quality. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dynamic/Different Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation!

EXCELLENCE = Flawless EXECUTION + Continuous IMPROVEMENT + Brilliantly Trained PEOPLE Gamechanging QUESTS + WEIRD Rosters + GASPWORTHY Results EXCELLENCE = Flawless EXECUTION + Continuous IMPROVEMENT + Brilliantly Trained PEOPLE + Gamechanging QUESTS + WEIRD Rosters + GASPWORTHY Results

EXCELLENCE. ATTITUDE. TRANSFORMATION. PSF.

“Principal Engine of Value Added” Are you the … “Principal Engine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?

Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers)

Full Partner- Leader in Lifetime Value-added Maximization “Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization Professional ? Or/to: Full Partner- Leader in Lifetime Value-added Maximization ? (*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

2 m 38 s

Full-scale, Accountable Member-Partner of XYZ Hospital’s Senior Healing-Services Team HCare CIO : “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healing-Services Team (who happens to be a techie)

Financial Services Make dealers successful so they CAN pay Trek is the commercial financial Company 12 employees Oversee peak AR of $160M Identify opportunities Profit Center Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments PSF Transformation: Credit Department/Trek Was Is Credit Dept Financial Services Hammer on dealers until Make dealers successful so they they pay CAN pay AR sold to 3 rd party Trek is the commercial financial commercial co. Company 23 employees 12 employees Oversee peak AR of $70M Oversee peak AR of $160M Identify risky dealers Identify opportunities Cost Center Profit Center No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments Source: John Burke/0330.06

<$20 Trapper: <$20 per beaver pelt. Source: WSJ

WDCP*: $150 to remove “problem beaver”; $750- $1,000 for flood-control piping … so that beavers can stay. WDCP*: $150 to remove “problem beaver”; $750- $1,000 for flood-control piping … so that beavers can stay. * “Wildlife Damage-control Professional” Source: WSJ

VALUE ADDED #8B

WOW! The WOW! Project.

“Let’s make a dent in the universe!” “Let’s make a dent in the universe!” —Steve Jobs

WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!) Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

“Astonish me!” “Build something great!” “Make it immortal!” “Astonish me!” (S.D). “Build something great!” (H.Y.). “Make it immortal!” (D.O.)

If you are not prepared to be fired over your beliefs … you are working on the wrong project. If you are not prepared to be fired over your beliefs … you are working on the wrong project. —TP

Will you actually remember it as worthwhile 10 years from now?” Will you actually remember it as worthwhile 10 years from now?” —S.H.

You! = Your Project Portfolio!

A “position” is not an “accomplishment.” A “position” is not an “accomplishment.” —TP

WOW! WOW! Projects: Nuts & Bolts (a few)

Playmate!* Playpen! Playmate!* Playpen! *Can be Client, supplier … as well as Insider

Playmate!* Playpen! Prototype! Playmate!* Playpen! Prototype! *Can be Client, supplier … as well as Insider

F.F.F.F. Where to look for “Playmates”: F.F.F.F. (Find a Fellow Freak Faraway)

: The “Sri Lanka Stratagem” Forward, march: The “Sri Lanka Stratagem”

BIG BIG BIG UP Where NOT to look for “Playmates”: BIG Division, BIG Customer, BIG Vendor, UP

the most valuable core competence Culture of Prototyping “ Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” —Michael Schrage

Prototype mania/ maniac!*

THE PROJECT 50

WOW! Projects Epidemic: Demos, Heroes, Stories! Starting a WOW! Projects Epidemic: Demos, Heroes, Stories!

“ Ordering” Systemic Change is a Waste of Time! Premise: “ Ordering” Systemic Change is a Waste of Time!

To create lasting change, find these areas of positive deviance and fan the flames.” “Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.” —Richard Tanner Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

I look for things that went right, and try to build off them.” “Some people look for things that went wrong and try to fix them. I look for things that went right, and try to build off them.” —Bob Stone (Mr ReGo)

Demos! Heroes! Stories!

the effective communication of a story.” Demo = Story “A key – perhaps the key – to leadership is the effective communication of a story.” —Howard Gardner, Leading Minds: An Anatomy of Leadership

Best story wins!

Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors / Support Groups / End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant REAL Org Change: Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors / Support Groups / End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant

JKC 1. Scour for renegades; wine & dine. 2. Go outside for funds.

“Make your own McKinsey” “Make your own McKinsey” (AP)

(The Parallel Universe Strategy) Build a “School on top of a school”/Continuing- Exec Ed (The Parallel Universe Strategy)

Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules

Tempo: He who has the quickest O.O.D.A. Loops* wins! Tempo: He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd

Be(very)ware “genetic constraints” (history’s looong arm) You must “do” Gandhi Hire weird (fulltime or temp) Find the extant crazies (troll for them via offers to join weird project teams) Create a (quiet) “Crazies Club”/Keep extendin’ the Web Create “boondocks projects” by the truckload (with partners of every flavor) Understand: Yours is a “protection racket” Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death) TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd Subversive Change Be(very)ware “genetic constraints” (history’s looong arm) You must “do” Gandhi Hire weird (fulltime or temp) Find the extant crazies (troll for them via offers to join weird project teams) Create a (quiet) “Crazies Club”/Keep extendin’ the Web Create “boondocks projects” by the truckload (with partners of every flavor) Understand: Yours is a “protection racket” Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death) TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd

Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” “ Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead

“Yes! Work with him/her to re-frame their principal project to the point that their ego is fully engaged and it becomes something of a ‘life compulsion.’ SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?” TP: “Yes! Work with him/her to re-frame their principal project to the point that their ego is fully engaged and it becomes something of a ‘life compulsion.’ ” * * “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”

VALUE ADDED #8C

EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.

“ Experiences are as distinct from services as services are from goods.” “ Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

“We have identified a ‘third place.’ “The [ Starbucks ] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District Manager

“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 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

“ Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ” “ Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ” Source: Jean-Marie Dru, Disruption

WHAT CAN BROWN DO FOR YOU?

MEMORABLE CONNECTION Spellbinding Experiences The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

“Great Vacation”/ “Great Conference”/ “Operation Personal Renewal” Beyond the “Transaction”/ “Satisfaction” Mentality “Good hotel”/ “Happy guest”/ “Exceeded Expectations” vs. “Great Vacation”/ “Great Conference”/ “Operation Personal Renewal”

Warren Goes Shopping …

Jordan’s It’s all showmanship.” Q: “Why did you buy Jordan’s Furniture?” A: “Jordan’s is spectacular. It’s all showmanship.” Source: Warren Buffet interview/ Boston Sunday Globe/12.05.2004

C X O C X O* *Chief e X perience Officer

“ Most executives have no idea how to add value to a market in the metaphysical world. “ 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.]

Male Female dominance Extraction & Goods: Male dominance Services & Experiences: Female dominance

“ … focus on ‘engagement,’ not ‘experience’ …” —Martin Buber, I and Thou, 1927 (from Steve Yastrow, We)

Steinbeck. Reductionism, Perils Of.

“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a whole new relational externality has come into being—an entity which is more than the sum of the fish plus the fisherman. The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines and write the truth. There you have recorded a reality which cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what you are doing. The man with this pickled fish has set down one truth and recorded in his experience many lies. The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

"A cynic is a man who knows the price of everything and the value of nothing" —Oscar Wilde

EXCELLENCE. EXPERIENCE. BONUS.

Where Are Your “2-cent Candies”? Where Are Your “2-cent Candies”? Beltramo’s checkout. SFFD door-to-door fire- hazard check. Carpet installer booties. Singapore candies @ Immigration

blanket at outside table And You? Stockholm: blanket at outside table (August)

Jim Jeffords oversight! The … Jim Jeffords oversight!

FLOWERPOWERFLOWERPOWERFLOWERPOWERFLOWERPOWER

“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay

VALUE ADDED #8D

EXCELLENCE. DRAMATIC. DIFFERENCE. DOABLE.

similar similar similar similar similar similar s imilar “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 s imilar quality.” —Kjell Nordström and Jonas Ridderstråle, Funky Business

not This is not a “mature category.”

This is an “ undistinguished category.”

When we did it ‘right’ it was still pretty ordinary.” “When we did it ‘right’ it was still pretty ordinary.” —Barry Gibbons on “Nightmare No. 1”

$415 $798 $415 /SqFt/Wal*Mart $798 /SqFt/Whole Foods

#1/100 #1/100 “ Best Companies to Work for” /2005

Wegmans

7X. 730A- 800P. F12A. * 7X. 730A- 800P. F12A. * * ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

“It’s simple, really, Tom. Hire for s, and, above all, promote for s.” “It’s simple, really, Tom. Hire for s, and, above all, promote for s.” —Starbucks middle manager/field

A man without a smiling face must not open a shop.” “ A man without a smiling face must not open a shop.” —Chinese Proverb

EXCELLENCE. #1T.

Donnelly’s Weather Strip Service Donnelly’s Weather Strip Service Weymouth MA

EXCELLENCE. #1T.

Jim’s Group Jim’s Group Jim Penman/“Empire Builders”/MT / Jan/Feb 2006/Australia

Jim’s Group : Jim Penman.* 1984: Jim’s Mowing. 2006: Jim’s Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. Jim’s Group : Jim Penman.* 1984: Jim’s Mowing. 2006: Jim’s Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. *Ph.D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006

The “Missing 900M” Will the Boat Sink the Water: The Life of China’s Peasants —Chen Guidi and Wu Chuntao

EXCELLENCE. #1T.

Cirque du Soleil!

1. Audacity of Vision 2. Innovation/R&D/Design 3. Talent Acquisition & Development 4. Resultant “Experience” 5. Strategic Alliances 6. Operations 7. Financial Management 8. Overall/Sustaining Excellence 9. “Wow!” 10. Lovemark! And the Winner is … 1. Audacity of Vision 2. Innovation/R&D/Design 3. Talent Acquisition & Development 4. Resultant “Experience” 5. Strategic Alliances 6. Operations 7. Financial Management 8. Overall/Sustaining Excellence 9. “Wow!” 10. Lovemark!

“Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.” “A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’” “Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.” “A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’” —Daniel Lamarre, president, Cirque du Soleil

EXCELLENCE. NO EXCUSES.

A store is a store is a store is a store …

WallopWal*Mart16* ABSURDLY EASY BEAT GIANT WallopWal*Mart16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16 * Niche-aimed. (Never, ever “all things for all people,” a “mini- Wal*Mart.) * Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) *“Dramatically Different” (La Difference... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) * Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) * Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)

The thing that all these companies have in common is that they have nothing in common. “This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman- Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company

The “Small Guys” Guide: Wallop Wal*Mart16 * Hands-on, emotional leadership. (“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!”) * A community star! (“Sell” local-ness per se. Sell the hell out of it!) * An incredible experience, from the first to last moment—and then in the follow-up! (“These guys are cool! They ‘get’ me! They love me!”) * DESIGN DRIVEN! (“Design” is a premier weapon-in- pursuit-of-the sublime for small-ish enterprises, including the professional services.)

The “Small Guys” Guide: Wallop Wal*Mart16 * Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) * Sophisticated use of information technology. (Small-“ish” is no excuse for “small aims”/execution in IS/IT!) * Web-power! (The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.) * Innovative! (Must keep renewing and expanding and revising and re-imagining “the promise” to employees, the customer, the community.)

The “Small Guys” Guide: Wallop Wal*Mart16 * Brand-Lovemark* (*Kevin Roberts) Maniacs ! (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional- niche “lovemark.”) * Focus on women-as-clients. (Most don’t. How stupid.) * Excellence! (A small player … per me … has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen niche!)

tom peters: what I’ve Learned about “Small Business”

Passion for PRODUCT. OBSESSION With Product. LOVE The Product. Aim To Be “ONLY ONES WHO DO WHAT WE DO.” Keep ADDIN’ Stuff. Invest “UNWISELY” in R&D. Reside Permanently In The DISCOMFORT Zone. “Unhealthy” PARANOIA Is A Good Thing. Add Clients That PUSH-PULL. SELL. SELL. SELL. SELL. Go For Broke: CUSTOMER CONTACT PEOPLE. PERFECTION: Customer Contact People. Hire for ATTITUDE. INVITE On An Adventure. GREAT CFO/Biz Guy-Gal. NASTY CFO/Biz Guy-Gal. QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic- Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)

Seminars + Travel: 65% Research & Writing: 40-50%* Admin/“Stuff”: 15% Seminars + Travel: 65% Research & Writing: 40-50%* Admin/“Stuff”: 15% *Greater than 100%; considerable research-writing is performed on the road

GREAT Logo. DESIGN! “OVERDO” Marketing Materials. WOMEN Roar. WOMEN Rule. WOMEN Buy. Diversity = $$$$$$ Be RELENTLESS. Cut And RUN. Product Includes-Features the PACKAGING. Define Your DRAMATIC DIFFERENCE (R.P.O.V.8) Best STORY Wins. DRESS For Success. First Goal: AMUSE Yourself. Know YOURSELF. DON’T Do Stuff You Hate. “Over-invest” In RELATIONSHIPS. (R.O.I.R.: Return On Investment in Relationships) SYSTEMATICALLY “Manage” Relationships. “Work” The SUPPORT PEOPLE In Client Orgs.

BLOG As If Your Life Depended On It. SOPHISTICATED Use Of Infotech. RESPONSE To Problems. Make ’Em PAY. CLOSE The Sale. Invest BIGTIME In PR. Media FRIENDLY. Live-To-SCHMOOZE. Fun/Laughter = $$$$ MBWA: Stay In Touch. “You Must Be The Change You Wish To See In The World”/GANDHI 5K For 5M. Your CALENDAR Never Lies. OUT: Pastels. IN: Technicolor

JUST SAY “NO” TO C.E.O.: CIO/Chief Innovation Officer. CSO/Chief Sales Officer. CWO/ Chief Wow Officer EXCELLENCE Is Very Cool. “MICRO-MANAGE” Your Reputation. Wear Your Integrity On Your SLEEVE. KEEP Your Promises. EXECUTION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! “A Man Without A Smiling Face MUST NOT Open His Shop.” RECOGNITION! Work HARD, Not Smart. “Insanely Great.” THE STANDARD.

“ A man without a smiling face must not open a shop.” “ A man without a smiling face must not open a shop.” —Chinese Proverb

Smile more. Tom/2006/Q97-Q100 Study more. Renew more. Tailor more. Offer more. Listen more. Market more. Practice more. Challenge more. Socialize more. Smile more. Follow-up more. Plan execution more. Cost control more.

The Fab Five: What Every Small Biz Needs Success = DDMMPR/ "D-squared, M-squared, PR” = DramDiff + Money-Financial Acumen + Good “Marketing” Instincts + Stellar People + Resilience DramDiff + Money-Financial Acumen + Good “Marketing” Instincts + Stellar People + Resilience

Hmmm … Bacteria. (“Left tail” limits.) Productivity of small. Failure rate of Big Mergers. Failure rate of Big Companies. Terrorists. Galbraith vs Hayek.

Productivity Pandemic IMAOA: Institute of Modest Advances in (Many, Many) Ordinary Activities

“While many people big oil finds with big companies, over the years about 80 percent of the oil found in the United States has been brought in by wildcatters such as Mr Findley, says Larry Nation, spokesman for the American Association of Petroleum Geologists.” —WSJ, “Wildcat Producer Sparks Oil Boom in Montana,” 0405.2006

A Few Biases You Should Know About *I am not a macro-economist. * I am wholly biased by 30 years (1970-2000) in Silicon Valley. * I would rather work for e Bay than BankAmerica. *I believe that the Giant Merger Game is the single greatest waste of energy in the world of business. *Economies of scale are wildly over-rated. *I find the entire notion of “career” to be disturbing and a little silly. *I find the notion of “built to last” hilarious. *Between 1965 and 1980 I turned 179.9 degrees from “Mr Big Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you, Frank Perdue.) *Joseph Schumpeter (“gales of creative destruction”) and F.A. Hayek are my economist “gods”; JK Galbraith is my bête noir. *“Innovation” is a wonderfully messy & chaotic process—not amenable to “strategic plans.” *I believe in Luck. (Fooled by Randomness—best book I’ve ever read.)

Small Giants: Companies That Choose To Be Great Instead Of Big Small Giants: Companies That Choose To Be Great Instead Of Big —by Bo Burlingham

Small Giants/Bo Burlingham I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create." the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow." each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business — a relationship that went well beyond the usual concept of ‘giving back.'" they cultivated exceptionally intimate relationships with customers and suppliers, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises." "First, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create." "Second, the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow." "Third, each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business — a relationship that went well beyond the usual concept of ‘giving back.'" "Fourth, they cultivated exceptionally intimate relationships with customers and suppliers, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises."

Small Giants/Bo Burlingham the companies also had what struck me as unusually intimate workplaces." I was impressed by the variety of corporate structures and modes of governance that these companies had come up with." I noticed the passion that the leaders brought to what the company did. They loved the subject matter, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion." "Fifth, the companies also had what struck me as unusually intimate workplaces." "Sixth, I was impressed by the variety of corporate structures and modes of governance that these companies had come up with." "Finally, I noticed the passion that the leaders brought to what the company did. They loved the subject matter, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."

We share the Zingerman’s experience selling food that makes you happy, giving service that makes you smile—in passionate pursuit of our mission, showing love and caring in all our actions to enrich as many lives as we possibly can.” — “We share the Zingerman’s experience selling food that makes you happy, giving service that makes you smile—in passionate pursuit of our mission, showing love and caring in all our actions to enrich as many lives as we possibly can.” —Zingerman’s Guide to Giving Great Service/ Ari Weinzweig/Ann Arbor MI

The Small*Mart Revolution: How Local Businesses Are Beating Local Competition The Small*Mart Revolution: How Local Businesses Are Beating Local Competition —Michael Shuman

NEVER AGAIN I [“Bacteria Man”] HEREBY PLEDGE: When asked, “What are some examples of companies stepping up to today’s challenges?” … I will … NEVER AGAIN … offer an example of a Giant Company; instead I’ll refer to Cirque du Soleil, Donnelly’s Weather Strip Service, 3K tanning salons, 10.6M women-owned businesses (or the typically/95+% female recipients of micro-lending) …* *There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”

Why isn’t the mainstream business press interested in the “missing 90%” of the Economy ? (1) Ad revenue. (2) Hard work. Q: Why isn’t the mainstream business press interested in the “missing 90%” of the Economy ? A(?): (1) Ad revenue. (2) Hard work.

Grameen Bank/Mohammed Yunus Grameen Bank/Mohammed Yunus Small can be beautiful & powerful! People first! Trust! Women rule!!!!!!!! Giant forests from tiny seedlings! Self reliance! Community based! Self/Small group management! Banish the bureaucrats! Keep it simple, stupid! Hands on! Etc.Etc.

Bacteria rule! Sizeable cases are virtually irrelevant anomalies. Stephen Jay Gould: Bacteria rule! Sizeable cases [e.g. humans] are virtually irrelevant anomalies.

VALUE ADDED #8E

EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

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.” 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

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.” 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

We sell dreams Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions

Starbucks = Shaper of Culture: “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.” Starbucks = Shaper of Culture: “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.” —Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

Today, we also offer our customers the products and services that help them achieve their dreams “No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams —whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.” — Martin Feinstein, CEO, Farmers Group

1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

IBM-UPS IBM-UPS IBM-UPS IBM-UPS IBM-UPS IBM-UPS Six Market Profiles 1. Adventures for Sale/ IBM-UPS 2. The Market for Togetherness, Friendship and Love/ IBM-UPS 3. The Market for Care/ IBM-UPS 4. The Who-Am-I Market/ IBM-UPS 5. The Market for Peace of Mind/ IBM-UPS 6. The Market for Convictions/ IBM-UPS Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

EMOTION Dreams Come True The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

Dreams Come True Spellbinding Experiences Gamechanging Solutions The (NEW) Value-added Ladder Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

C DM C DM* *Chief Dream Merchant

“Dreams Come True”: IBM

“ Dreams Come True”: IBM UPS

We stand facing the fifth kind of society: the Dream Society. “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

VALUE ADDED #8F

EXCELLENCE. VALUE-ADDED LADDER IV. LOVE IT.

“Brands have run out of juice. They’re dead.” “Brands have run out of juice. They’re dead.” —Kevin Roberts/Saatchi & Saatchi

Lovemarks ! Kevin Roberts: Lovemarks !

Wrapped in Mystery Brand …………………………………………………. Lovemark Recognized by consumers ………………. Loved by People Generic ………………………………………………… Personal Presents a narrative ………………….. Creates a Love story The promise of quality ……………… A touch of Sensuality Symbolic ………………………………………………….. Iconic Defined ………………………………………………….. Infused Statement ………………………………………………….. Story Defined attributes ……………………... Wrapped in Mystery Values ………………………………………………………. Spirit Professional …………………………... Passionately Creative Advertising agency ………………………….. Ideas company Source: Kevin Roberts, Lovemarks

Mystery “ When we were working through the essentials of a Lovemark, Mystery was always at the top of the list.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

“Lovemarks are owned by the people who love them.” “Lovemarks are owned by the people who love them.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

Tattoo Brand Tattoo Brand : What % of users would tattoo the brand name on their body?

Harley.… 18.9% Disney.... 14.8 Coke …. 7.7 Google.... 6.6 Pepsi.... 6.1 Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 Top 10 “Tattoo Brands”* Harley.… 18.9% Disney.... 14.8 Coke …. 7.7 Google.... 6.6 Pepsi.... 6.1 Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 * BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

Your name here … ?? Top 10 “Tattoo Brands”* Harley.… 18.9% Disney.... 14.8 Coke …. 7.7 Google.... 6.6 Pepsi.... 6.1 Rolex …. 5.6 Your name here … ?? Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 *BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

ECSTASY Lovemark The Value-added Ladder/ ECSTASY Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

C L O C L O* *Chief Lovemar k Officer

Damn it …

Lovemark?! IBM UPS PSF Logistics “Department” HR “Department”

Ladder.2006: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Ladder.2006: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

VALUE ADDED #8G

EXCELLENCE. SOUL I. THE STORY.

“Storytelling is the core of culture.” “Storytelling is the core of culture.” —Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Best story wins!

Market Power = Story Power

C ST O C ST O* *Chief Storytelling Officer

Companies will thrive on the basis of their stories and myths. “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

VALUE ADDED #8H

EXCELLENCE. SOUL II. DESIGN.

crave Franchise Lost! TP: “ How many of you [600] really crave a new Chevy?” NYC/IIR/061205

Design is the only thing that differentiates one product from another in the marketplace.” 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

treated like a religion “Design is treated like a religion at BMW.” —Fortune

Design is the fundamental soul of a man-made creation.” “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation.” —Steve Jobs

Starbucks ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ “With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

The “Missing 95%”: The Unconscious! Marketing “Magic”* The “Missing 95%”: The Unconscious! *E.g.: ZMET/Zaltman Metaphor Evaluation Technique

Westin’s … Heavenly Bed

C D O C D O * *Chief Design Officer

Hard is soft. Soft is hard.

“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a whole new relational externality has come into being—an entity which is more than the sum of the fish plus the fisherman. The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines and write the truth. There you have recorded a reality which cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what you are doing. The man with this pickled fish has set down one truth and recorded in his experience many lies. The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

THE DESIGN49

EXCELLENCE. SYSTEMS. DESIGN. K.I.S.S.

“One bank is currently claiming to … ‘ leverage its global footprint’ to provide effective financial solutions for its customers by providing a gateway to diverse markets.” —Charles Handy

help its customers wherever they are’.” “I assume that it is just saying that it is there to ‘help its customers wherever they are’.” —Charles Handy

“Between the local people and the top [of FEMA] seem to be about seven or eight layers of people who need to get a life.” “Between the local people and the top [of FEMA] seem to be about seven or eight layers of people who need to get a life.” —Mayor Bill White, Houston

Ellie Mae Grunge Removal 101 Ellie Mae

Its essence should be describable in one page... If you can't describe your strategy in twenty minutes, simply and in plain language, you haven't got a plan.” "A business unit strategy should be less than fifty pages long and should be easy to understand. Its essence should be describable in one page... If you can't describe your strategy in twenty minutes, simply and in plain language, you haven't got a plan.” —Larry Bossidy

“Seek honest, minimalist management. Look for companies run by a team that explains things clearly and briefly. … You can tell a lot about the firm by reading an annual report or two. If management can’t explain the business in plain English, move on to another firm. If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.” “Seek honest, minimalist management. Look for companies run by a team that explains things clearly and briefly. … You can tell a lot about the firm by reading an annual report or two. If management can’t explain the business in plain English, move on to another firm. If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.” —Seth Jayson, “Stocks for the Lazy Investor,” The Motley Fool

First Steps: “Beauty Contest”! 1. Select one form/document: invoice, airbill, 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. Clarity. Simplicity. 3. Re-invent! 4.Repeat, with a new selection, every 15 working days. every 15 working days.

I wanted GE to operate with the speed, informality, and open communication of a corner store. Corner stores often have strategy right. With their limited resources, they have to rely with laser-like focus on doing one thing very well.” “ I wanted GE to operate with the speed, informality, and open communication of a corner store. Corner stores often have strategy right. With their limited resources, they have to rely with laser-like focus on doing one thing very well.” —Jack Welch/ Fortune/04.05

Run It off a Blackberry! Lee’s Rule: Run It off a Blackberry!

VALUE ADDED #8I

EXCELLENCE. NEW VALUE EQUATION. NEW “C-levels”.

C R O Revenue C R O* *Chief Revenue Officer

C X O e X perience C X O* *Chief e X perience Officer

C DM Dream C DM* *Chief Dream Merchant

C F O* C F O* *Chief Festivals Officer

C PI * C PI * *Chief Portal Impresario

C C O* C C O* *Chief Conversations Officer

C L O Lovemark C L O* *Chief Lovemark Officer

C S O* C S O* *Chief Seduction Officer

C ST O Storytelling C ST O* *Chief Storytelling Officer

C D O Design C D O * *Chief Design Officer

C ta O talent acquisition C ta O* *Chief talent acquisition Officer

C fa O freaks acquisition C fa O* *Chief freaks acquisition Officer

C Q O quest-meister C Q O* *Chief quest-meister

C T O Thrills C T O* *Chief Thrills Officer

C TR O Transcendence C TR O* *Chief Transcendence Officer

C W O *Chief WOW Officer C W O* *Chief WOW Officer

C ! O C ! O* *Chief ! Officer

EXCELLENCE. WHAT MATTERS.

“What Isn’t Matter Is What Matters” “What Isn’t Matter Is What Matters” —section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

“Andy pointed to a molding, about halfway up the wall …” VA “Teaching Moment” “Andy pointed to a molding, about halfway up the wall …”

The Boot … and Timberland The Tomato/ Farmer … and Campbell’s

VALUE ADDED #9

“5 Damn Its” Women. PSF. Brand you. R.f.a. EXCELLENCE. ALWAYS. To The Mat: The “5 Damn Its” Women. PSF. Brand you. R.f.a. EXCELLENCE. ALWAYS.

EXCELLENCE. ALWAYS. WOMEN. BOOMERS. GEEZERS. OPPORTUNITY. $$$$$$$$$$$. ENORMOUS. Tom Peters/11.02.2006/Version.153

not. Yet. Done.

women. BOOMERS. GEEZERS.

It ain’t old if it hasn’t been implemented!” Amazon Reviewer: “‘Trends’ [TP- MB book] is old news!” (1 of 5 stars) TP: “Repeating it doesn’t make it ‘old.’ It ain’t old if it hasn’t been implemented!”

What the hell do I have to do to make my point? What the hell do I have to do to make my point? Tom Peters/10.10.2006

The Copenhagen (Self) Pact re “This Topic”: *Early! *Loud! *Repetitive! *Aggressive! *Unfriendly!/rude!/ insulting!

women.

“Forget China, India and the Internet : Economic Growth Is Driven by Women.” “Forget China, India and the Internet : Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14

Women’s Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES Women’s Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES (Old/Retire; Young/Poorly educated)

Women’s Trifecta+ *Buy/all *Wealth/all *Lead/ better +Eclipse of males/whoops Women’s Trifecta+ *Buy/all *Wealth/all *Lead/ better +Eclipse of males/whoops (Retire-old/Poorly educated-young)

1. Women’s CONSUMER GOODS purchases. 2. Women’s COMMERCIAL GOODS purchases. 3. WOMEN ARE THE MARKET. Not an “initiative.” 4. Women-owned BUSINESSES. (absolute #s, acceleration, relative growth.) 5. Women’s “brand” of LEADERSHIP SKILLS. 6. women’s strengths match needs of the new “value-added ladder.” 7. Women’s DRAMATICALLY INCREASING-commanding WEALTH—absolute, relative. (Jobs. Longevity. Education. Entrepreneurial. Decline of BOYS. Retirement of MEN/Senior MEN.) 8. DEMOGRAPHIC TSUNAMI. WOMEN. Women as solo HEADs-OF-HOUSEHOLD. THE WOMaN- BOOMER-GEEZER. LOoooNG-TERM PHENOMENON. Global phenomenon. 9. SPEED of “change.” mother of all “megatrends.”

1. Participation rate/2 of 3 new jobs, last 30 years. 2. Male workforce departures /SENIOR male workforce departures. 3. Shrinking pay gap/same jobs. 4. More senior positions. Greater decisionmaking/expenditure/org design authority. More line jobs. 5. Female solo head-of-household growing. 6. Longevity. 7. Education. 8. More effective money management.

Not. Yet. Done.* Loyalty programs: M F “Difference” = Yawning gap (173+ degrees) Forced to do it: e.g., a division aimed at Boomer Women … Exclusively. Just say no to “trickle up”: Why have the 5% chase the 95%?) Men think they’re doing their share (helping, sure, but the buck stops with her); busy, busy, busy—think Jim’s Group) New forms of living together, playing together as aging proceeds (“commune”, Beacon Hill Assn, telemedicine, etc., etc., etc.) “Grab ’em early & keep ’em”: Total Unmitigated Crap (TP: 100% brand switch. 100%.) “They didn’t take it seriously” —German bank exec, Bonn, F This is not a $%^&ing “program.” This is “NEW Life 101.” This is Soooo Big it Staggers the Imagination. (Will be paramount “trend” for 20 years.) *The Copenhagen Pact

Boomers. geezers. Boomers. geezers.

not. Yet. Done.

Boomers’-Geezers’ Trifecta *Buy/all *Wealth/all *time left/ lots

Boomers’-Geezers’-Women’s Trifecta+ *Buy/all *Wealth/all *time left/ lots *Eclipse of males/retire-die

Only 50% done!

!!!!!!!!!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them.” “People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

not. Yet. Done.

Just Say “No” (!): Just Say “No” (!): Launch an “Initiative.”

Objections Don’t believe the DATA Don’t believe the ENORMITY of the opportunity Don’t believe the UBIQUITY of the opportunity Think they “GET IT” See it as an “Initiative” Flies in the face of CONVENTIONAL MARKETING WISDOM Don’t see it as … THE ESSENCE OF STRATEGIC POSITIONING Fail to understand-TAKE FULL ADVANTAGE “Everything must be changed” (It’s a “Culture” issue) Look at it analytically; miss the need for OBSESSION Occasion to make JOKES Objections Don’t believe the DATA Don’t believe the ENORMITY of the opportunity Don’t believe the UBIQUITY of the opportunity Think they “GET IT” See it as an “Initiative” Flies in the face of CONVENTIONAL MARKETING WISDOM Don’t see it as … THE ESSENCE OF STRATEGIC POSITIONING Fail to understand-TAKE FULL ADVANTAGE “Everything must be changed” (It’s a “Culture” issue) Look at it analytically; miss the need for OBSESSION Subconsciously threatened!!?? Occasion to make JOKES

You either believe “all this.” Or don’t. * You either believe “all this.” Or don’t. * *No middle ground at the level of Extreme Commitment I’m suggesting

Don’t “get it” = Stupid * *and you are not stupid

E-nor-mous Strat-eg-ic opp-or-tun- ity

It ain’t old if it hasn’t been implemented !” Amazon Reviewer: “‘Trends’ [TP- MB book] is old news!” (1 of 5 stars) TP: “Repeating it doesn’t make it ‘old.’ It ain’t old if it hasn’t been implemented !”

VALUE ADDED #9A

EXCELLENCE. NEW MARKETS. ENORMOUS. OPPORTUNITIES.

EXCELLENCE. OPPORTUNITY. ENORMOUS. WOMEN.

“ Idiot” “ Idiot” is too kind a word.

“That’s a very diverse* team.” —Patrick Cescau, CEO, Unilever** *1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.) 85% **Approximately 85% of Unilever’s products are purchased by … women.

“That’s a VERY diverse team.” —Patrick Cescau, CEO, Unilever * ** *1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.) **Approximately 85% of Unilever’s products are purchased by … women.

VERY “That’s a VERY sick man.” —Tom Peters

“ Idiots” “ Idiots” is too kind a word.

Weenie of the year, 2006 … ???????? Weenie of the year, 2006 …

6/44 ???????? 6/44

EXCELLENCE. FOUND. DUH.

To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” “ To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” —Steve Reinemund/PepsiCo

Indra Nooyi

A[nother] Delightful Blinding Flash of the Obvious!* ** Flash of the Obvious!* ** “P&G does more than half its business outside the U.S., so [CEO A.G.] Lafley has recast his top executive group to be 50% non- American.” —Fortune, 1218.06 so [CEO A.G.] Lafley has recast his top executive group to be 50% non- American.” —Fortune, 1218.06 *I’ll take it! **Women next? 85%?

“A couple of years ago, the Los Angeles division [of John Laing Homes] decided it was going to become the king of Hispanic housing [sarcasm], because our research shows there’s a huge demand. They were right to go after that market, but I looked around the room, and it’s full of white guys. They were telling us how much they know about Hispanic buyers, and they were making it up. … We’re getting better now. We hired two smart, young Hispanic managers. … We are working through a partnership with [former HUD secretary] Henry Cisneros. We’re learning, but we have a long way to go.” —Larry Webb

“EXCELLENCE.” AARGH.

5 200 5

“Kodak Sharpens Digital Focus On Its Best Customers: Women” Good Thinking, Guys! “Kodak Sharpens Digital Focus On Its Best Customers: Women” —Page 1 Headline/WSJ/0705

EXCELLENCE. OPPORTUNITY. ENORMOUS. WOMEN.

Just Say No Men Just Say No. Men

the “Women are the majority market” —Fara Warner/The Power of the Purse

“Women make 80 percent of all buying decisions. They control $7 trillion in purchasing power. By 2010 they'll control more than $13 trillion in private wealth. And that's just in America. Globally, women's soaring economic power is changing business forever. ” —Fara Warner

Home Furnishings … 94% Vacations … 92% Houses … 91% D.I.Y. … 80% Consumer Electronics … 51% Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

Women 80% 53% 80% 60%+ 60% 51% 70% Women Household spending: 80% Investment decisions: 53% Home improvement purchase decisions: 80% New cars: 60%+ Computers: 60% Managers and professionals, overall: 51% New businesses started: 70%* (*Women-owned businesses as a share of all new businesses: Employee growth, 3X; Sales growth, 4X.) Source: Marti Barletta, PrimeTime Women (2007)

>50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment >50% biz trips WimBiz: Employees > F500; 10M+: 33% all US Biz Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal 60% work; 46M (divorced, widowed, never married) The Power of the Purse USA/F.Stats: Short ’n (Very) Sweet >50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment >50% biz trips WimBiz: Employees > F500; 10M+: 33% all US Biz Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal 60% work; 46M (divorced, widowed, never married) Source: Fara Warner, The Power of the Purse

Women > 50% of Household Income in >50% of households. In 48% of the 55% of households/married couples, women provide >50% of income. 27% of households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their spouse. Women control 51% of private wealth in the U.S.; head 40% of households with >$600K assets; 47% of market investors are women. Major Credit Union: pre Y2K, modal customer was 53-year-old family man; today, 46-year-old single working woman. Commercial: 51% purchasing managers are women. Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women: 70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% of cars (primary influence >80%). Women > 50% of Household Income in >50% of households. In 48% of the 55% of households/married couples, women provide >50% of income. 27% of households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their spouse. Women control 51% of private wealth in the U.S.; head 40% of households with >$600K assets; 47% of market investors are women. Major Credit Union: pre Y2K, modal customer was 53-year-old family man; today, 46-year-old single working woman. Commercial: 51% purchasing managers are women. Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women: 70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% of cars (primary influence >80%). Source: Don’t Think Pink: What Really Makes Women Buy—and How to Increase Your Share of This Crucial Market, Lisa Johnson & Andrea Learned

1970-1998 Men’s median income: +0.6% Women’s median income: + 63% 1970-1998 Men’s median income: +0.6% Women’s median income: + 63% Source: Martha Barletta, Marketing to Women

Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Commercial Purchasing Power Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women

Internet users: 60%* Internet users: 60%* *“manage their lives and the lives of their families” — Kelley Mooney, president, Resource Interactive Source: Fara Warner, The Power of the Purse

The “91% Factor”! More than 9 in 10 women age 35 - 49 say they either make or at least equally influence their household purchases either make or at least equally influence their household purchases of home electronics. of home electronics. Source: Andrea Learned, co-author, Don’t Think Pink

91% women: ADVERTISERS “DON’T UNDERSTAND US.” (58% “ANNOYED.”) 91% women: ADVERTISERS “DON’T UNDERSTAND US.” (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

“The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” “The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

Thanks, Marti Barletta !

The Perfect Answer Jill and Jack buy slacks in black…

knows more man low IQ hard of hearing no right speaking to him “ She knows more about the [Volvo] than the sales man who greets her at the door. But how is she treated? As if she has a low IQ, is slightly hard of hearing, and really has no right to be buying a luxury car; and if she brought a male friend with her, odds are 10:1 that the clueless salesperson spent most of his time speaking to him.” —Selling to Men, Selling to Women, Jeffery Tobias Halter

EVEolution: The Eight Truths of Marketing to Women EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

Connecting Your Female Consumers to Each Other Connects Them to Your Brand 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.’ ” “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

Week #8: testosterone time! Week #8: testosterone time!* *Louann Brizendine, Neuropsychiatrist, The Female Brain. Week #8/Testosterone surge kills: communication cells ; grows: sex & aggression cells. Also/E.g.: 10X to 20X, F eye contact/look for emotional signals by 3 months. Later: F, more sentences that begin with “Let’s …”; more likely to take turns

“ 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.” “ Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” —Judy Rosener, America’s Competitive Secret

They join them.” “Women don’t buy brands. They join them.” EVEolution

The Model The Model Selling to men: The TRANSACTION Model Selling to Women: The RELATIONAL Model Source: Selling to Men, Selling to Women, Jeffery Tobias Halter

Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK)

Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women

“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.’ ” “The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution

“ Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” “ Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” —Judy Rosener, America’s Competitive Secret

In other words, women communicate three times more than men.” “A woman can effortlessly speak 6,000 to 8,000 words a day, use an additional 2,000-3,000 vocal sounds and 8,000- 10,000 gestures and body signals. A man utters 2,000-4,000 words, 1,000- 2,000 vocal sounds and makes 2,000- 3,000 body language signals. In other words, women communicate three times more than men.” —Barbara and Allan Pease (from Selling to Men, Selling to Women, Jeffery Tobias Halter)

2.6 vs. 21

Women come out better “Women come out better on almost every count as investors on almost every count as investors … They are less likely to hold a losing investment too long, and less likely to wait too long to sell a winner; they’re also less likely to put too much money into a single investment or to buy a reputedly hot stock without doing sufficient research.” Source: The Merrill report: “When It Comes to Investing, Gender A Strong Influence on Behavior.”/Atlantic

Discover, by accident, “blue ocean” [women’s financial needs] ! Ignore your [Dean Witter] boss! Sell 750,000 copies of your latest book to Wells Fargo Home Mortgage! Source: the David Bach story, including Smart Women Finish Rich, per IBD (01.08.07)

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. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.

10. Women’s Market = Opportunity No. 1.

Fara Warner : The Power of the Purse P-l-e-a-s-e Read … Fara Warner : The Power of the Purse

Cases! Cases! Cases! McDonald’s Home Depot P&G DeBeers AXA Financial Kodak Nike Avon Bratz Fara Warner/The Power of the Purse Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/The Power of the Purse

Faith, Lys, Marti, Fara … Targeting the New Professional Woman: How to Market and Sell to Today’s 57 Million Working Women —Gerry Myers

“Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist, April 15

Power of the Purse: McDonald’s Discovers Women!

12.2002: $-344M*International*Build *Men & Children Source: Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

“Mostly Moms” “Women were either ignored in favor of focusing on men— generally considered the industry’s most frequent users and therefore its most important consumers—or they were cast in the role of moms who were simply conduits to their children.” “Women were either ignored in favor of focusing on men— generally considered the industry’s most frequent users and therefore its most important consumers—or they were cast in the role of moms who were simply conduits to their children.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

“We simply had stopped being relevant to women.” —Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”)

“Women [in women-only focus groups] told us that all moms are women, but not all women are moms—so why weren’t we trying to reach all women? We realized we should be finding the woman inside the mom.” —Carol Koepke, marketing director (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”)

“McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” “McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

New! New! New! New! New! Women’s magazines Women’s magazines [“a medium that McDonald’s had rarely used”] Source: Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

Power of the Purse: BEST BUY Discovers Women!

“Best Buy Gets in Touch With Its Feminine Side: Chain wants to be much more than a toy store for big boys.” —headline, USA Today (12.21.06)

“Instead of hitting high-tech hysteria at Best Buy this holiday season, shoppers may notice a softer, more personal atmosphere. Music is quieter. Lights are lower. Salespeople talk to customers about their lifestyles, what they want the technology to do for them … and how they want it to fit into their homes, offices, cars. … If you need more help, one of thousands of its ‘Geek Squad’ techies will come to your home to hook stuff up.” —USA Today, 12.21.06, “Best Buy Gets in Touch With Its Feminine Side: Chain wants to be much more than a toy store for big boys.”

“We were a boys’ toy store designed for boys by boys.” “We were a boys’ toy store designed for boys by boys.” —Julie Gilbert, VP, Best Buy “It’s no longer the days of eight-track tapes and big speakers with the big foam that smells. The products we sell and the services we sell are about trends and fashion.” “It’s no longer the days of eight-track tapes and big speakers with the big foam that smells. The products we sell and the services we sell are about trends and fashion.” —Julie Gilbert “Women couldn’t get anyone to help them. They weren’t treated with respect.” “Women couldn’t get anyone to help them. They weren’t treated with respect.” —Julie Gilbert “We’re working with the Girl Scouts, with private female colleges and others to recruit amazing women so we can delight our women customers.” private female colleges and others to recruit amazing women so we can delight our women customers.” —Julie Gilbert “Best Buy Gets in Touch With Its Feminine Side: Chain wants to be much more than a toy store for big boys.” —USA Today, 12.21.06, “Best Buy Gets in Touch With Its Feminine Side: Chain wants to be much more than a toy store for big boys.”

“We’re working with the Girl Scouts, private female colleges and others to recruit amazing women so we can delight our women customers.” —Julie Gilbert, VP, Best Buy (USA Today, 12.21.06)

EXCELLENCE. OPPORTUNITY. WOMEN. BUSINESS. OWNERS.

“The growth and success of women- owned businesses is one of the most profound changes taking place in the business world today.” today.” — Margaret Heffernan, How She Does It

U.S. firms owned or controlled by Women: 10.6 million ( 48% of all firms) Growth rate of Women-owned firms vs all firms: 3X Rate of jobs created by Women-owned firms vs all firms: 2X Ratio of total payroll of Women-owned firms vs total for Fortune500 firms: >1.0 Ratio of likelihood of Women-owned firms staying in business vs all firms: >1.0 Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all firms: 2X Source: Margaret Heffernan, How She Does It

94% of loans to … women* *M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

PrimeTime Women: How to Win the Hearts, Minds and Business of Boomer Big Spenders —Marti Barletta How She Does It: How Women Entrepreneurs Are Changing the Rules of Business Success —Margaret Heffernan

VALUE ADDED #9B

WOMEN. DOMINATE. ECONOMIC. GROWTH.

“Forget China, India and the Internet : Economic Growth Is Driven by Women.” “Forget China, India and the Internet : Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14

“Economic Growth Is Driven by … Women.” Economist —Headline, Economist, April 15, 2006, Leader, page 14

“Since 1970, women have held two out of every three new jobs created.” “Since 1970, women have held two out of every three new jobs created.” —FT, 10.03.2006

“Forget China, India and the Internet: Economic Growth Is Driven by Women.” Girls may now be a better investment.” Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot more than brawn. Those women have contributed more to global GDP growth than have either new technology or the Internet: Economic Growth Is Driven by Women.” [Headline.] “Even today in the modern, developed world, surveys show that parents still prefer to have a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their parents’ old age. Yet it is time for parents to think again. Girls may now be a better investment.” “Girls get better grades in school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot more than brawn. … And women are more likely to provide sound advice on investing their parents’ nest egg—e.g.: surveys show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in the last couple of decades. Those women have contributed more to global GDP growth than have either new technology or the new giants, India and China.” new giants, India and China.” Economist Source: Economist, April 15, Leader, page 14

“A Guide to Womenomics: The Future of the World Economy Lies Increasingly in Female Hands.” Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in “Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” Continuing on page 73: “A Guide to Womenomics: The Future of the World Economy Lies Increasingly in Female Hands.” (Headline.) More stats: Around the globe since 1980, women have filled “two new jobs for everyone taken by a man.” “Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers, and investors.” Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in “Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” A couple of final assertions: (1) It is now agreed that “the single best investment that can be made in the developing world” is educating girls. (2) Also, surprisingly, nations with the highest female laborforce participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest participation rates, such as Italy and Germany, have the lowest fertility rates. Economist, Source: Economist, April 15, page 73

Q: No. 1 contributor to developing country economic improvement? A: More education for women. Source: Many* (*On a related note, eBay founder Pierre Omidyar and his wife just gave $100M to Tufts—its biggest gift ever—to support micro-lending; women typically are the recipients of 90% of micro-loans because they use the $$$ more productively than men.)

Repeat: “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” of 13%.” —Economist, April 15

Primary markets/Everything Greater global workforce participation rate Higher wages Business “decision makers” Women-owned businesses Impact! Add It Up! Primary markets/Everything (“Men buy things that other men will buy for women. I buy things that women want.”— successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.) Greater global workforce participation rate (“bigger contributor to GDP growth than technology, China, India”—Economist) Higher wages (more seniority, promotions—even if not to CEO; greater pay equity—even if not equal) Business “decision makers” (more seniority, promotions—even if not to CEO) Women-owned businesses (answer to the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. soared worldwide. Women are closing in on “same pay for same job.” job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se]. office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness & aligned with new organizational effectiveness & value-added imperatives. value-added imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. as well as consumer goods. So what exactly is … the point of men?

“Boys Falling Seven Years Behind Girls at GCSE Level” Not Just America … “Boys Falling Seven Years Behind Girls at GCSE Level” —headline, Weekly Telegraph, UK, 10.25.06

For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

New World, New “Girl Power”? They appeared more confident than many of the boys. They had not ‘lost their voice.’ … They neither feared competition from boys nor the consequences of out-performing them.” New World, New “Girl Power”? “Not long ago I was talking with a group of girls at Greenfield High, in northern New Jersey, about Mary Pipher’s bestselling book, Reviving Ophelia. … The girls’ reaction to Ophelia was one of confusion. They disagreed with the book’s premise—that girls are robbed of vitality and self-esteem as they enter adolescence. According to Pipher, our sexist society causes girls ‘to stifle their creative spirit and natural impulses, which ultimately destroys their self-esteem.’ ‘Who are the girls in this book?’ asked Sarah, a Greenfield sophomore. ‘I mean, I feel sorry for them, but they’re pretty much losers. We’re not at all like them.’ From what I could see, she was right. The girls I met were vital. They appeared more confident than many of the boys. They had not ‘lost their voice.’ … They neither feared competition from boys nor the consequences of out-performing them.” —Dan Kindlon, Alpha Girls

Women’s contribution to family income: major source of growing inequality

VALUE ADDED #9C

COROLLARY. EXCELLENCE. WOMEN. RULE.

“AS LEADERS, WOMEN RULE: TITLE/ Special Report/ BusinessWeek “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek

Women’s 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 Women’s 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. —Judy B. Rosener, America’s Competitive Secret: Women Managers

Women’s Negotiating Strengths *Ability to put themselves in their counterparts’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Women’s Negotiating Strengths *Ability to put themselves in their counterparts’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21 st -century negotiator will need the female touch”

New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Lovemark/ F Dreams Come True/ F Spellbinding Experiences/ F Gamechanging Solutions/ F New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Lovemark/ F Dreams Come True/ F Spellbinding Experiences/ F Gamechanging Solutions/ F Services/ F Goods/ M Raw Materials/ M

“TAKE THIS QUICK QUIZ Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch “TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?” Selling Is a Woman’s Game: 15 Powerful Reasons Why with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

The Core Argument: Women [Ought to] Rule! 1. We are in a War for Talent. 2. The war will intensify. 3. There is a severe shortage of effective leaders at all levels. 4. Women are under-represented in our leadership ranks at or near the top. 5. Women and men are different; “new science” reinforces this view. 6. Women’s strengths match the New Economy’s leadership needs—to a striking degree. 7. Women are also the principal purchasers of goods and services—retail and commercial. 8. Ergo, women are a large part of “the answer” to the War for Talent/leadership shortage issue/opportunity. The Core Argument: Women [Ought to] Rule! 1. We are in a War for Talent. 2. The war will intensify. 3. There is a severe shortage of effective leaders at all levels. 4. Women are under-represented in our leadership ranks at or near the top. 5. Women and men are different; “new science” reinforces this view. 6. Women’s strengths match the New Economy’s leadership needs—to a striking degree. 7. Women are also the principal purchasers of goods and services—retail and commercial. 8. Ergo, women are a large part of “the answer” to the War for Talent/leadership shortage issue/opportunity.

“[Women] bring a different perspective to politics. They don’t expect to be waited on — and in everything we do we keep our kids in mind.” —Sarah Palin, first woman governor of Alaska (USA Today, 0104.07)

VALUE ADDED #9D

EXCELLENCE. OPPORTUNITY. ENORMOUS. BOOMERS. GEEZERS.

“ Idiots” “ Idiots” is too kind a word.

Stupid Fr*&^ing Idiot-Marketers! They’re old! Stupid Fr*&^ing Idiot-Marketers! “Critics describe evening news in unflattering terms— They’re old! They’re set in their ways! They won’t buy iPods!” Source: Advertising Age, 05.08.06

????????????? ????????????? “Gen Y Sits on Top of Consumer Food Chain: They’re savvy shopper with money and influence” ????????????? ????????????? “Gen Y Sits on Top of Consumer Food Chain: They’re savvy shopper with money and influence” —Headline, USA Today, 1012.06

Just Say No. 1 8-44

Subject: Marketers & Stupidity “ It’s 18-44, stupid!”

Subject: Marketers & Stupidity Subject: Marketers & Stupidity Or is it: “ 18-44 is stupid, stupid!”

Who wants to reach them? What nonsense!” “One particularly puzzling category of youth- obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants to reach them? Beyond fast food and beer, they don’t buy much of anything. … The theory is that if you ‘get them while they’re young, they’re yours for life.’ What nonsense!” — Marti Barletta, PrimeTime Women

-1% +21% +47% 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47% )

BoomerBucks! Boomer turns 50: every 7 seconds. 2009: majority of U.S. households headed by someone over 50. 2006- 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. 2006: 1 in 5 adults is F, over 50. Women between 50-70 who are single: 35%. Age 45-54: highest average income, $59, 021 (national average is $42,209). FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64 (4X men in same category). Women, age 60-64: 50% still in workforce. Highest net worth: families, 55-64 ($182,000). People over 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. Next 2 decades: BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLION (“largest intergenerational transfer of wealth in history”). —Marti Barletta, PrimeTime Women

New cars & trucks: 20% more spending. Meals at full-service restaurants: +29%. Airfare: +38%. Sports equipment: +58%. Motorized recreational vehicles: +103%. Wine: 113%. Maintenance, repairs and home insurance: +127%. Vacation homes: +258%. Housekeeping & yard services: +250% to +500%. 55-64 vs 25-34 E.g.: New cars & trucks: 20% more spending. Meals at full-service restaurants: +29%. Airfare: +38%. Sports equipment: +58%. Motorized recreational vehicles: +103%. Wine: 113%. Maintenance, repairs and home insurance: +127%. Vacation homes: +258%. Housekeeping & yard services: +250% to +500%. Source: Marti Barletta, PrimeTime Women

13 7 Average # of cars purchased per household, “lifetime”: 13 Average # of cars bought per household after the “head of household” reaches age 50: 7 Source: Marti Barletta, PrimeTime Women

3Q/2006. $312M. (+18%.) $1.6B. (+14%.) Source: BusinessWeek, 1106.06, “Harley Just Keeps on Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely. So why is the stock at a record high?”

50+ $7T$2T 50% 79% 40M 5% of advertising targets 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

Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.” “Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.” —Marti Barletta, PrimeTime Women

Median Household Net Worth 55-64: $112K 65-69: $114K 70-74: $120K Median Household Net Worth 74: $100K Source: U.S. Census

“New Customer Majority” 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

“The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” “The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing

“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” “Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” —Peter Francese, founding publisher, American Demographics

Possession Experiences /“Desires for things ”/Young adulthood/to 38 Catered Experiences / “Desires to be served by others”/Middle adulthood Being Experiences /“Desires for transcending experiences ”/Late adulthood Ageless Marketing Possession Experiences /“Desires for things ”/Young adulthood/to 38 Catered Experiences / “Desires to be served by others”/Middle adulthood Being Experiences /“Desires for transcending experiences ”/Late adulthood Source: David Wolfe and Robert Ageless Marketing

“Older people have an image problem. As a culture, we’re conditioned toward youth. … When we think of youth, we think ‘energetic and colorful;’ when we think of middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of ‘old’ or ‘senior,’ we think either ‘exhausted and gray’ or, more likely, we just don’t think. … The financial numbers are absolutely inarguable—the Mature Market has the money. Yet advertisers remain astonishingly indifferent to them. …” “Older people have an image problem. As a culture, we’re conditioned toward youth. … When we think of youth, we think ‘energetic and colorful;’ when we think of middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of ‘old’ or ‘senior,’ we think either ‘exhausted and gray’ or, more likely, we just don’t think. … The financial numbers are absolutely inarguable—the Mature Market has the money. Yet advertisers remain astonishingly indifferent to them. …” —Marti Barletta, PrimeTime Women

“Baby-boomer Women : The Sweetest of Sweet Spots for Marketers” “Baby-boomer Women : The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing

She’s the most powerful consumer in America. sixty redefining herself.” “WOMAN of the Year: She’s the most powerful consumer in America. And as she starts to turn sixty this month, the affluent baby boomer is doing what she’s always done— redefining herself.” —Joan Hamilton, Town & Country, JAN06

Magazine of the Year*: More Source: Advertising Age, 1023. 2006, “‘More’ Taps Power of 40-plus to Draw Advertisers in Droves” (“More is breaking through advertisers’ irrational obsession with 20-somethings …”)

“Rock of Ages: Uncool But True, the AARP Demographic Leads the Music Market. But Who Will Lead It?” Source: Headline, “Arts and Leisure,” NYT, 1126.06

“Sixty Is the New Thirty” —Cover/AARP

“‘Age Power’ will rule the 21 st century, and we are woefully unprepared.” “‘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

Explosion of “Stay at Home” Services Beacon Hill Village (>50; $580 per year; screened providers, 10%+ off; $35 to take cat and member to vet) Geriatric care managers ($80-$200 per hour; Nat’l Ass’n of Professional Geriatric Care Managers) Seniors Safe@Home (monitor client movements such as bathroom, gotten out of bed; BP, sugar levels, data screened by call center, available via Web to children; etc)

“Road Signs of the Times: Creating an easier-to-read typeface for aging drivers” —The New York Times

VALUE ADDED #9E

BONUS. EXCELLENCE. OPPORTUNITY. ENORMOUS. SINGLE-PERSON HOUSEHOLDS.

Single-person Households Fastest growing demographic: Single-person Households (>50% in London, Stockholm, etc.) Source: Richard Scase

single women single men % of homes purchased by single women: 1981, 10%;2005, 20% % of homes purchased by single men: 1981, 10%; 2005, 9% Source: USA Today/02.15.06

Women PURCHASERS. Women business owners. WOMEN WEALTH CONTROLLERS. WELL-PAID WOMEN WORKERS. WOMEN LEADERS. Boomer-Geezer PURCHASERS. BOOMER-GEEZER WEALTH CONTROLLERS. Single-person HHs (Urban)

BONUS. EXCELLENCE. OPPORTUNITY. ENORMOUS. GENERIC DEMOGRAPHIC TSUNAMI. (UNPRECEDENTED IN HISTORY.)

Demographic Upheaval! 60% 10,000 per day 75% “flood the management ranks” Demographic Upheaval! 1/1/2008: 60% of the Prime Work Force (“boomers”), mostly white males, will be able to retire—at a rate of 10,000 per day. As of 2005: 75% of people entering the workforce are women and minorities. As of 2008, they will “flood the management ranks” as the PWF retires. Programs for recruiting women and minorities with the necessary intensity: mostly AWOL. Selling to Men, Selling to Women, Jeffery Tobias Halter

VALUE ADDED #9F

not. Yet. Done.

What the hell do I have to do to make my point? What the hell do I have to do to make my point? Tom Peters

The Copenhagen (Self) Pact re “This Topic”: *Early! *Loud! *Repetitive! *Aggressive! *Unfriendly!/rude!/ insulting!

Women’s Trifecta+ *Buy/all *Wealth/all *Lead/ better +Eclipse of males/whoops Women’s Trifecta+ *Buy/all *Wealth/all *Lead/ better +Eclipse of males/whoops (Retire-old/Poorly educated-young)

Boomers’-Geezers’ Trifecta *Buy/all *Wealth/all *time left/ lots

Boomers’-Geezers’-Women’s Trifecta+ *Buy/all *Wealth/all *time left/ lots *Eclipse of males/retire-die

Just Say “No” (!): Just Say “No” (!): Launch an “Initiative.”

You either believe “all this.” Or don’t. * You either believe “all this.” Or don’t. * *No middle ground at the level of Extreme Commitment I’m suggesting

Don’t “get it” = Stupid * *and you are not stupid

E-nor-mous Strat-eg-ic opp-or-tun- ity

It ain’t old if it hasn’t been implemented!” Amazon Reviewer: “‘Trends’ [TP- MB book] is old news!” (1 of 5 stars) TP: “Repeating it doesn’t make it ‘old.’ It ain’t old if it hasn’t been implemented!”

VALUE ADDED #10

EXCELLENCE. BIGGEST INDUSTRY. EMERGENCY. OPPORTUNITY.

“What’s Really Propping Up the Economy: Healthcare has added 1.7 million jobs since 2001. The rest of the private sector? None.” Source: Title, cover story, BusinessWeek, 0925.2006

2 m 38 s

Q.W.P. * *Quality. Wellness. Prevention.

Childhood Obesity > Terrorism

Bust fat docs!

“Sanitary revolution”: mortality in major cities down 55% between 1850 and 1915 Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

“If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your fellow humans that would make the most positive impact?’ It would be a close call between Love Thy Neighbor and Wash Your Hands. A close third would be Move, Move, Move.” —Mark Pettus, M.D., The Savvy Patient “The most important thing you can do to keep from getting sick is to wash your hands. ” —CDC/National Center for Infectious Diseases

EXCELLENCE. (HEALTHCARE.) HEALTH.

HEALTH?

Spend more per capita Overall system performance/WHO: 37 th Relatively low life expectancy High # of uninsured State of Healthcare/U.S.A. *Spend more per capita *Overall system performance/WHO: 37 th *Relatively low life expectancy *High # of uninsured Source: Consulting, 07-08.06

ISSUES.

Quality (100K+ deaths) “Evidence/Outcomes-based” medicine IS/IT-in-health(care) revolution Wellness/Prevention Health“care” to Health “culture” transformation Wash your hands! Home-care (as the population rapidly ages) Med-school re-orientation “Public health” emphasis Childhood Obesity Mind-boggling (15 years?) social-moral-technological impact of life sciences (“the Singularity”?) H5N1 /WMDs/Environmental degradation Risk assessment (private, public) Market opportunity Public vs/+ Private responsibilities & partnerships Africa! (Unconscionable failure to attend to/staggering Health consequences for all)

REPORT CARD.

Evidence-based/Outcomes-based ……………….………...... D Pay-for-performance ………………………………………….… D IS/IT (general) ………………………………..………………..…. C- Use of information (for decisionmaking-measurement).… C- EMR (Electronic Medical Records) ……………………..….... D CPOE (Computerized Physician Order Entry) ……….……. C-/D Quality/100K+ unnecessary deaths …………..……… D-(kind) Acute care to chronic care-home care shift ………….….... D/D- Acute-care to Prevention/Wellness Obsession…..… F- Patient-centric/Client-centric………………………………….. D Docs’ acceptance of “evidence-based” …………............… D/D- “Revolutionary”-intensity Incentives re evidence …..……. D- Re-imagine Healthcare: Reportcard2006 Evidence-based/Outcomes-based ……………….………...... D Pay-for-performance ………………………………………….… D IS/IT (general) ………………………………..………………..…. C- Use of information (for decisionmaking-measurement).… C- EMR (Electronic Medical Records) ……………………..….... D CPOE (Computerized Physician Order Entry) ……….……. C-/D Quality/100K+ unnecessary deaths …………..……… D-(kind) Acute care to chronic care-home care shift ………….….... D/D- Acute-care to Prevention/Wellness Obsession…..… F- Patient-centric/Client-centric………………………………….. D Docs’ acceptance of “evidence-based” …………............… D/D- “Revolutionary”-intensity Incentives re evidence …..……. D- Childhood obesity epidemic …………………………….. D- H5N1 preparedness ………………………………….…….. D Corporate focus on Prevention/Wellness…………..…..…..... C-/D Individual focus on Prevention/Wellness…………………..… D Individuals’ health education/self-management …….…...…. C- Workforce acceptance of self-responsibility ….…….…...….. C- Workforce transition to “Brand You” attitude……..……..….. C-/D 3 March 2006/Tom Peters

T.T.D./ ACTION. NOW.

Visible Signs/Measures (Creech) TRAIN. TRAIN. TRAIN. (P.S.) Med school, Nursing school curriculum (P.S.) BOLD!/Big change EASIER than modest change (P.S., etc.) EXCELLENCE. ONLY. ALWAYS. DAMN IT. EVP/Patient Safety P.S.O.s Fund the living hell out of it (P.S.) CEO (etc): REFLECT IT IN CALENDAR EMERGENCY STATUS H.M.O.s: Big/ENORMOUS (+/-) incentives for docs, hospitals, etc., etc. BOARD: Patient Safety Committee BOARD: WPCC Committee Patient Safety BALDRIDGE (POTUS?)

CERTIFICATION/RE-CERTIFICATION for One & All (P.S., etc.) WPOCC Rules!!!!!!! (Wellness/ Prevention/Obesity/ChronicCare) WPOCC: N.G.A. (AK) INSURANCE COMPANY VISIBILITY/ SPONSORSHIP/MEGA-INCENTIVES Awards Galore P.S./WPOCC) BOARD Committee: H5N1 HHS: Split HC & PWO (Ontario) Write off ½ of med school loan if “pay” with 3-5 years service in Public Health Glamorize Family Practice, Public Health, etc. FAT legislation?? (Almost certainly) (Density, HFCS, Transfats, etc., etc.) (A FIRST FOR TP) SUE the hell out of One & All re Obesity (Cigarettes II)

Research LEAP @ N.I.H. (Etc, Etc, ETC) INCENTIVES @ SCHOOLS (BIG!!) EMR: Intensify!!!!!!!!!!!!! No leadership position in AHA (AMA?) (DEANs?) (Etc?) without “Safety tour” No Medical Chief (>150 beds?) without “Safety tour” FORGET ABOUT ME!!! (Except Wellness, ChroniCare) VIGOROUSLYSUPPORT Home Care American OBESITY = African AIDs (??) ELIMINATE/OBLITERATE HIGH FRUCTOSE CORN SYRUP! ELIMINATE/OBLITERATE TRANSFATS! (HFTC/TF = The Real “WMDs”) FDA: Kill! Kill! Kill! (Please)

CEO Bonus: 50+%: P.S./WPOCC OBNOXIOUS labels Incentives for BILLBOARDS Natl Advertising Council PARENTING education, etc. THIS IS NOT A “PROGRAM” (P.S./WPOCC)

STATE OF EMERGENCY

Bust fat docs!

Health: Century21.Job # 1

Quality! Prevention! Wellness! Chronic care! Childhood obesity! H5N1!

Quality!

2 m 38 s

Welcome to the Homer Simpson Hospital a/k/a The Killing Fields

“When I climb Mount Rainier I face less risk of death than I’ll face on the operating table.” “When I climb Mount Rainier I face less risk of death than I’ll face on the operating table.” — Don Berwick, “Six Keys to Safer Hospitals: A Set of Simple Precautions Could Prevent 100,000 Needless Deaths Every Year,” Newsweek (1212.2005)

“Quality”: COULD IT TRULY BE THIS AWFUL ?

195,000 This should give you pause when you go to the hospital.” There is little evidence that patient safety has improved in the last five years.” HealthGrades/Denver: 195,000 hospital deaths per year in the U.S., 2000-2002 = 390 full jumbos/747s in the drink per year. Comments: “This should give you pause when you go to the hospital.” —Dr. Kenneth Kizer, National Quality Forum. “ There is little evidence that patient safety has improved in the last five years.” —Dr. Samantha Collier Source: Boston Globe/07.27.04

1,000,000 “serious medication errors per year” … “illegible handwriting, misplaced decimal points, and missed drug interactions and allergies.” 1,000,000 “serious medication errors per year” … “illegible handwriting, misplaced decimal points, and missed drug interactions and allergies.” Source: Wall Street Journal / Institute of Medicine

90,000 killed and 2,000,000 injured from hospital-caused drug errors & infections CDC 1998: 90,000 killed and 2,000,000 injured from hospital-caused drug errors & infections

“BAD MEDICINE: This teenager [Jehan Nassif] died because of a medical bungle. So do 18,000 other Australians each year. Why our hospitals keep making fatal mistakes.” 200,000 in the United States “BAD MEDICINE: This teenager [Jehan Nassif] died because of a medical bungle. So do 18,000 other Australians each year. Why our hospitals keep making fatal mistakes.” —cover, The Bulletin (Australia), 09.05.2006 (“… up to 16% of hospitalized patients will suffer an adverse event; 50% of these will be preventable and 10% of these will lead to permanent disability or death.”) (equivalent, on a per capita basis, to about 200,000 in the United States —which is about the actual U.S. number)

Dear Mr. & Mrs. Smith, XYZ hospital regrets to inform you ……. …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… ………………………. Sincerely, A. S. Jackson, Administrator T. D. Jones, M.D., Chief Medical Officer L.S. Donald, CFO W.N. Arnold, CIO

Reporter: “Mr Gandhi, what do you think about western civilization?”* Gandhi: “I think it would be a very good idea.” *Upon the occasion of Gandhi’s historic visit to England

100,000 Lives Campaign* About Time! 100,000 Lives Campaign* *Don Berwick/Institute for Healthcare Improvement

Childhood Obesity > Terrorism Childhood Obesity > Terrorism Source: Mike Levitt/Secretary HHS

HEALTH

Dubai Healthcare City to Dubai Health City* TP Recommendation #1: Dubai Healthcare City to Dubai Health City* *Cleveland Clinic and Canyon Ranch

Wash your hands. Apply #50 sunscreen. Banish trans fat Banish high fructose corn syrup. Exercise “30-7.” Breathe. Stockpile for H5N1.* (*not Tamiflu!) Avoid hospitalization. Take charge of your health.

Wash Your Hands. Move, Move, Move.” wash your hands. “If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your fellow humans that would make the most positive impact?’ It would be a close call between Love Thy Neighbor and Wash Your Hands. A close third would be Move, Move, Move.” —Mark Pettus, M.D., The Savvy Patient “The most important thing you can do to keep from getting sick is to wash your hands. ” —CDC/National Center for Infectious Diseases

Primary “Success Factors”: “Sanitary revolution”: mortality in major cities down 55% between 1850 and 1915 Primary “Success Factors”: “Sanitary revolution”: mortality in major cities down 55% between 1850 and 1915 Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

20%: not get prescriptions filled 50%: use meds inconsistently 20%: not get prescriptions filled 50%: use meds inconsistently Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

“Curve Shifting” Only Effective Strategy? “Curve Shifting” Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

“BUMP INTO FACTOR”:Extra- size portions, eat more. Higher % shelf space snacks, more obesity. More liquor stores, more crime. High vs low fat: Japanese who emigrate to U.S. suffer 3X increase in heart disease. “BUMP INTO FACTOR”: Extra- size portions, eat more. Higher % shelf space snacks, more obesity. More liquor stores, more crime. High vs low fat: Japanese who emigrate to U.S. suffer 3X increase in heart disease. Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

E.g.: plate size, location of platters, 6.5 feet = -63% Source: Brian Wansink, Mindless Eating (20 lbs per year; 200 decisions per day) (In Search of Excellence, office spacing and communication; Sprint; density of FF outlets) Behavioral Primacy! E.g.: plate size, location of platters, 6.5 feet = -63% Source: Brian Wansink, Mindless Eating (20 lbs per year; 200 decisions per day) (In Search of Excellence, office spacing and communication; Sprint; density of FF outlets)

Sprint/Overland Park KS: Slow elevators, distant parking lots with infrequent buses, “food court” as “poorly” placed as possible, etc. Sprint/Overland Park KS: Slow elevators, distant parking lots with infrequent buses, “food court” as “poorly” placed as possible, etc. Source: New York Times

WELLNESS

Why wasn’t I “informed” until age 59? Aging reversal!!!!

Diet Extreme exercise Meditation Supplements Eliminate all alcohol (Meds) “Fixes” Diet Extreme exercise Meditation Supplements Eliminate all alcohol (Meds)

Health + Social combination = 20% fewer admissions, 40% less bed occupancy [over 65] Source: Unicare/UK/Dr David Lyon/Pulse, 1123.06

Market Forces RediClinic.CheckUps.Take Care.MinuteClinic* (*“We treat these 16 rules-based disorders”/ “Go-no go” tests.15 minutes.$39) Wal*Mart.CVS.Target. Walgreens.RiteAid Source: FT (10.06.06); NYT (12.31.06)

VALUE ADDED #10A

HEALTHCARE MEETS HEALTH: The Case of the PLANETREE ALLIANCE

Planetree: A Radical Model for New Healthcare/Healing/ Wellness Excellence Planetree: A Radical Model for New Healthcare/Healing/ Wellness Excellence Tom Peters/17 September 2006

“It was the goal of the Planetree Unit to help patients not only get well faster but also to stay well longer.” “It was the goal of the Planetree Unit to help patients not only get well faster but also to stay well longer.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“Much of our current healthcare is about curing. Curing is good. But healing is spiritual, and healing is better, because we can heal many people we cannot cure.” “Much of our current healthcare is about curing. Curing is good. But healing is spiritual, and healing is better, because we can heal many people we cannot cure.” —Leland Kaiser, “Holistic Hospitals”

1. The Importance of Human Interaction Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Healing Partnerships: The importance of Including Friends and Family Nutrition: The Nurturing Aspect of Food Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

The Importance of Human Interaction 1. The Importance of Human Interaction

Kindness is free. “There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome PS directly related to Staff Interaction PS directly correlated with Employee Satisfaction Press Ganey Assoc: 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome PS directly related to Staff Interaction PS directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

But if it is so simple, it is surprising how frequently it is absent from our healthcare environments. ‘abuse ’ “ Perhaps the simplest and most profound of all human interactions is KINDNESS. … But if it is so simple, it is surprising how frequently it is absent from our healthcare environments. … Many staff members report verbal ‘abuse ’ by physicians, managers and coworkers.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“Planetree is about human beings caring for other human beings.” “Planetree is about human beings caring for other human beings.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)

Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information

Planetree Health Resources Center/1981 Planetree Classification System Consumer Health Librarians Volunteers Classes, lectures Health Fairs Griffin’s Mobile Health Resource Center Open Chart Policy Patient Progress Notes Care Coordination Conferences (Est goals, timetable, etc.) Planetree Health Resources Center/1981 Planetree Classification System Consumer Health Librarians Volunteers Classes, lectures Health Fairs Griffin’s Mobile Health Resource Center Open Chart Policy Patient Progress Notes Care Coordination Conferences (Est goals, timetable, etc.) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Healing Partnerships: The Importance of Including Friends and Family 3. Healing Partnerships: The Importance of Including Friends and Family

“When hospital staff members are asked to list the attributes of the ‘perfect patient and family,’ their response is usually a passive patient with no family.” — Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.” The Patient-Family Experience “Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“Family members, close friends and ‘significant others’ can have a far greater impact on patients’ experience of illness, and on their long-term health and happiness, than any healthcare professional.” “Family members, close friends and ‘significant others’ can have a far greater impact on patients’ experience of illness, and on their long-term health and happiness, than any healthcare professional.” —Through the Patient’s Eyes

confided in at least one person 72.4%, 56.3% “A 7-year follow-up of women diagnosed with breast cancer showed that those who confided in at least one person in the 3 months after surgery had a 7-year survival rate of 72.4%, as compared to 56.3% for those who didn’t have a confidant.” —Institute for the Future

Respect for preferences Involvement in Decision Making Access to care Coordination of care Information and education Physical comfort Emotional support Involvement of Friends and Family Continuity of care Institute of Medicine/ “Crossing the Quality Chasm” Respect for preferences Involvement in Decision Making Access to care Coordination of care Information and education Physical comfort Emotional support Involvement of Friends and Family Continuity of care Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Care Partner Programs Unrestricted visits Collaborative Care Conferences Clinical Guidelines Discussions Family Spaces Pet Visits Care Partner Programs (IDs, discount meals, etc.) Unrestricted visits (“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members may be present.”) Collaborative Care Conferences Clinical Guidelines Discussions Family Spaces Pet Visits (POP: Patients’ Own Pets) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Nutrition: The Nurturing Aspect of Food 4. Nutrition: The Nurturing Aspect of Food

Meals are central events Meals are central events vs “There, you’re fed.” * *Irony: Focus on “nutrition” has reduced focus on “food” and “service” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Kitchen Beautiful cutlery, plates, etc. Chef reputation Kitchen Beautiful cutlery, plates, etc. Chef reputation Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Aroma therapy Aroma therapy (e.g.: “smell of baking cookies”) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Spirituality: Inner Resources for Healing 5. Spirituality: Inner Resources for Healing

1. Connected to supportive and caring group 2. Sense of mastery and control 3. Make meaning out of disease/ find meaning in suffering Spirituality: Meaning and Connectedness in Life 1. Connected to supportive and caring group 2. Sense of mastery and control 3. Make meaning out of disease/ find meaning in suffering Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

redesign chapel music, flowers, portable labyrinth Griffin: redesign chapel (waterfall, quiet music, open prayer book) Other : music, flowers, portable labyrinth Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Human Touch: The Essentials of Communicating Caring Through Massage 6. Human Touch: The Essentials of Communicating Caring Through Massage

“Massage is a powerful way to communicate caring.” “Massage is a powerful way to communicate caring.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Massage for every patient scheduled for ambulatory surgery (“Go into surgery with a good attitude”) Infant massage Staff massage (“caring for the caregivers”) Healing environments: chemo! Mid-Columbia Medical Center/Center for Mind and Body Massage for every patient scheduled for ambulatory surgery (“Go into surgery with a good attitude”) Infant massage Staff massage (“caring for the caregivers”) Healing environments: chemo! Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

7. Healing Arts: Nutrition for the Soul

Color! Light! Brilliance! Form! Art! Music! Planetree: “Environment conducive to healing” Color! Light! Brilliance! Form! Art! Music! Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

People say the effect is only on the mind. It is no such thing. The effect is on the body, too.” Florence Nightingale/Notes on Nursing/patient’s need for beauty, windows, flowers: “People say the effect is only on the mind. It is no such thing. The effect is on the body, too.” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Music in the parking lot; professional musicians in the lobby 5 pianos volunteers Griffin: Music in the parking lot; professional musicians in the lobby (7/week, 3-4hrs/day) ; 5 pianos ; volunteers (120-140 hrs arts & entertainment per month). Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Integrating Complementary and Alternative Practices into Conventional Care 8. Integrating Complementary and Alternative Practices into Conventional Care

83M in US (42%) CAM visits 243M, greater than to PCP (Primary Care Physician) (With min insurance coverage) W-Educated-Hi inc Don’t tell PCP (40%) OTA: <30% procedures used in conventional medicine have undergone RCTs (randomized clinical trials) CAM (Complementary & Alternative Medicine): 83M in US (42%) CAM visits 243M, greater than to PCP (Primary Care Physician) (With min insurance coverage) W-Educated-Hi inc Don’t tell PCP (40%) OTA: <30% procedures used in conventional medicine have undergone RCTs (randomized clinical trials) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Massage Acupuncture Meditation Chiropractic Nutritional supplements Aroma therapy Griffin IMC/Integrative Medicine Center Massage Acupuncture Meditation Chiropractic Nutritional supplements Aroma therapy Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Healing Environments: Architecture and Design Conducive to Health 9. Healing Environments: Architecture and Design Conducive to Health

Woods and natural materials Indirect lighting Homelike settings Goals: Welcome patients, friends and family … Value humans over technology.. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beauty “Planetree Look” Woods and natural materials Indirect lighting Homelike settings Goals: Welcome patients, friends and family … Value humans over technology.. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beauty Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Sound Texture Lighting Color Smell Taste Sacred space Sound Texture Lighting Color Smell Taste Sacred space Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“Happen to” “Happen with” Access to nurses station: “Happen to” vs “Happen with” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Conclusion: Caring/Growth “Experience”

Care!/Love!/Spirit! Self-Control! Connect!/learn!/ involve!/Engage! Understanding!/Growth! De-stress!/heal! Whole patient & family & friends! be well!/stay well!

F.Y.I.

Financially successful. Expanding programs- physically. Growing market share. Only hospital in “100 Best Cos to Work for”— 7 consecutive years, currently #6. Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results: Financially successful. Expanding programs- physically. Growing market share. Only hospital in “100 Best Cos to Work for”— 7 consecutive years, currently #6. —“Five-Star Hospitals,” Joe Flower, strategy+business (#42)

Learn more about Planetree/ The Planetree Alliance: www.planetree.org

EXCELLE ALWAYS.

X.always MASTER PART TWO 10 MARCH 2007. Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART 2.1O March 2007 *In Search of Excellence 1982-2007.

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X.always MASTER PART TWO 10 MARCH 2007. Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART 2.1O March 2007 *In Search of Excellence 1982-2007.

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Presentation on theme: "X.always MASTER PART TWO 10 MARCH 2007. Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART 2.1O March 2007 *In Search of Excellence 1982-2007."— Presentation transcript:

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