1. Why Are We Here? Tom Peters/ spbt/ Toronto/ 06.17.2002

2. Q: Why are we here? A/TP: I am increasingly unclear.

3. All Slides Available at … tompeters.com Note: Lavender text in this file is a link.

4. Brown.

5. Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”). Source: USA Today/06.14.2002

6. One person’s opinion …

7. Sorry, Elliott/spbt … the issue is not the delivery of training. The issue is … training for WHAT!

8. Issue #1: NOT … “How to do what we do better.” IS … “What the hell should we be doing?* *I am convinced that both your content and field processes are all screwed up.

9. From: “We are pill peddlers.” To: “We are providers of ‘Integrated, demonstrable health- & wellness-enhancing outcomes’ … in partnership with … CMOs, HMOs, state AGs & Govs, Patients, docs … of which pills may or may not be a/the central part.”

10. E.g.: Should we … abolish drug co. salesforces? And replace them with … Integrated Marketing Services/ Solutions Teams that (1) focus on outcomes, (2) include “sales,” “marketing,” “drug discovery process teams,” and various outsiders?

11. “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

12. The Future of Healthcare: Whoops I

13. Golden Age of Patient-centric, Genetics- driven Healthcare Looms! Current status: $1.3T. 30M-70M uninsured. 90K killed and 2M injured p.a. in hospitals. 85% treatments unproven. Cure depends on locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybody’s mad and feels powerless: docs, patients, nurses, insurers, employers, pharma & device cos, hospital administrators and staff.

14. The Future of Reps: Whoops II

15. “Consultative selling requires dialogue … and the time for that dialogue. Unfortunately, this seldom happens in today’s hurry-up complex world of pharmaceutical selling.”— newspost/spbt

16. Study of 500 Reps*: 65% “had face-to-face conversation with the physician for less than 30 seconds per visit. In fact, more than half of the 65% admitted that the average time is less than 15 seconds.” *Holy shit! Source: newspost

17. “Research reveals no evidence of overall superior selling behavior related to experience beyond five years. Quite the opposite …” —newspost/spbt

18. TP/06.2002: “So, tell me about reps …

19. Pediatric cardiologist & practice head: “I don’t see them, period. I study, write papers, use the Web, attend a minimum of 4 or 5 major conferences a year. My staff may see them, but I in general find their views uselessly prejudiced. Call it, I’m afraid to say, ‘hucksterism.’ If I want anything at all from them, it’s thoughtfulness—good luck!”

20. Urologist & Practice Head: “A few of them—a very few—are excellent. The good ones are self- deprecating. If their product is not all that great, they’ll admit it. Mostly, it’s a waste of my time. I let the staff handle it.”

21. Family Practice Office Administrator (3 Docs, Midsize town) TP: “How often does Dr. X see Reps?” PA: “He doesn’t.” [Emphatic.] TP: “That was sharp in tone! Why?” PA: “We used to set aside a two-hour block, once a month. But a lot of the Reps missed appointments. That, however, was the least of it. The biggest problems were the Reps who kept pushing the same thing, visit after visit. They had absolutely nothing new to say.” TP: “So how does Doc X keep up?” PA: “The Internet.” [T.O.V. = “What else?”]

22. Internist (Silicon Valley): “The Web is generally better. I spent a year of painstaking study, and now I have a system that keeps me informed in a ‘push’ fashion. I began as a skeptic, harassed by a few of my techie patients—and I’ve become a ‘believer’ and proselytizer. Now I find myself haranguing other doctors.”

23. Oncologist (Urban Med Center): “They are, or can be, helpful to the two-thirds of docs, to be frank, who don’t study much. I’ve got one or two I’ll call, but otherwise I’m ‘not available.’ Quiet study, and increasingly the Internet, are my tools of renewal.”

24. Pharmaceutical exec: “Truthfully, we hire attractive women as much as we can get away with. That plus pens are huge influencers—it’s what our focus groups tell us.” (The “attractive young women” theme was a constant refrain. “I find it laughable, to a point,” a female M.D. told me. “What I fear is that it works.”)

25. ER doc/exec: “It’s pathetic. The docs are half assed in their learning styles. Most don’t even pretend they are keeping up. Reps? She who has the best pens wins. Health care is out of control—and laughably unscientific. Whatever your nightmare stories are, Tom, trust me and my 25 years of experience, the reality is far worse.”

26. Plastic surgeon & practice head: “My practice has changed 100% in the last 10 years. Sadly, that’s not true for three-quarters of my colleagues. Information technology is a big part of it. It’s extremely user-unfriendly. It took me and my partners and office staff a year to customize our approach—and as we did so the role of the reps became less and less important. I won’t even let our staff schedule time with them. It’s inefficient, and most of them are humorously biased—and insult us by imagining it’s not transparent. I’m not complaining— but,fact is, I’m busy.”

27. My voyage: (1) “Hey, I’ll do TP’s eLearning pitch.” (Not as good as Masie’s.) (2) “Why do docs waste time with reps? Isn’t the Web the answer?” (A: Docs don’t waste time/much time with reps.) (3) “Hey, the fundamental concept of the selling relationship may be all bollixed up.” (Hmmmmm …)

28. Health Care Embraces Modern IT and Management Practice … Maybe.

29. Any Idiot’s Conclusion: The System Is Busted. (And: You are part of the system … not spectators from the “priviledged drug co.s”)

30. “We’re in the Internet age, and the average patient can’t email their doctor.” Donald Berwick, Harvard Med School

31. Want email consultation: 90% patients, 15% docs. Evidence: Patients do not pester docs. Time is saved. No one has sued (shows “care & connection”— the absence of which is the major cause of suits). Source: New York Times/06.06.02

32. “Without being disrespectful, I consider the U.S. healthcare delivery system the largest cottage industry in the world. There are virtually no performance measurements and no standards. Trying to measure performance … is the next revolution in healthcare.” Richard Huber, former CEO, Aetna

33. “A healthcare delivery system characterized by idiosyncratic and often ill-informed judgments must be restructured according to evidence- based medical practice.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

34. “As unsettling as the prevalence of inappropriate care is the enormous amount of what can only be called ignorant care. A surprising 85% of everyday medical treatments have never been scientifically validated. … For instance, when family practitioners in Washington were queried about treating a simple urinary tract infection, 82 physicians came up with an extraordinary 137 strategies.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

35. “Quality of care is the problem, not managed care.” Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)

36. RAND(1998): 50%, appropriate preventive care. 60%, recommended treatment, per medical studies, for chronic conditions. 20%, chronic care treatment that is wrong. 30% acute care treatment that is wrong.

37. CDC 1998: 90,000 killed and 2,000,000 injured from nosocomial [hospital-caused] drug errors & infections

38. 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

39. Various studies: 1 in 3, 1 in 5, 1 in 7, 1 in 20 patients “harmed by treatment” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

40. RAND (1998): 50%, appropriate preventive care. 60%, recommended treatment, per medical studies, for chronic conditions. 20%, chronic care treatment that is wrong. 30% acute care treatment that is wrong.

41. YE GADS! New England Journal of Medicine/ Harvard Medical Practice Study: 4% error rate (1 of 4 negligence). “Subsequent investigations around the country have confirmed the ubiquity of error.” “In one small study of how clinicians perform when patients have a sudden cardiac arrest, 27 of 30 clinicians made an error in using the defibrillator.” Mistakes in administering drugs (1995 study) “average once every hospital admission.” “Lucian Leape, medicine’s leading expert on error, points out that many other industries—whether the task is manufacturing semiconductors or serving customers at the Ritz Carlton—simply wouldn’t countenance error rates like those in hospitals.”—Complications, Atul Gawande

42. “Established state-of-the- art cancer care—about which there is no longer any debate—is erratically applied.” Source: Institute of Medicine’s National Cancer Policy Board

43. “In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to calculate medication doses. Eight out of 10 made calculation mistakes at least 10% of the time, while four out of 10 made mistakes 30 % of the time.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

44. “In health care, geography is destiny.” Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

45. Geography Is Destiny E.g.: Ft. Myers 4X Manhattan—back surgery. Newark 2X New Haven— prostatectomy. Rapid City SD 34X Elyria OH—breast-conserving surgery. VT, ME, IA: 3X differences in hysterectomy by age 70; 8X tonsillectomy; 4X prostatectomy ( 10X Baton Rouge vs. Binghampton). Breast cancer screening: 4X NE, FL, MI vs. SE, SW. (Source: various)

46. Geography Is Destiny “Often all one must do to acquire a disease is to enter a country where a disease is recognized—leaving the country will either cure the malady or turn it into something else. … Blood pressure considered treatably high in the United States might be considered normal in England; and the low blood pressure treated with 85 drugs as well as hydrotherapy and spa treatments in Germany would entitle its sufferer to lower life insurance rates in the United States.” —Lynn Payer, Medicine & Culture

47. It’s (measurable, systemic) outcomes, stupid!

48. “Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural consequence of a system that systematically tracks neither its processes nor its outcomes, preferring to presume that good facilities, good intentions and good training lead automatically to good results. Providers remain more comfortable with the habits of a guild, where each craftsman trusts his fellows, than with the demands of the information age.” Michael Millenson, Demanding Medical Excellence

49. Leapfrog Group/med errors: “Not since Jackson Hole Group guru Paul Ellwood, Jr., M.D., coined the term ‘HMO’ in 1970 has one idea so fully captured the imagination of the healthcare industry.” — HealthLeaders/06.2002

50. Leapfrog Group: CPOE/Computerized Physician Order Entry* ICU staffing by trained intensivists** EHR/Evidence-based Hospital Referral*** *Duh I: Welcome to the computer age. **Duh II: How about using experts? ***Duh III: If you do stuff a lotta times, you tend to get/be better. Source: HealthLeaders/06.2002

51. Empire Blue Cross and Blue Shield: 4% quarterly bonus for hospitals that meet Leapfrog’s CPOE and ICU-staffing standards. Source: HealthLeaders/06.2002

52. The Benefits of … FOCUSED EXCELLENCE Shouldice/Hernia Repair: 30-45 min, 1% recurrence. Avg: 90 min, 10%-15% recurrence. Source: Complications, Atul Gawande

53. The VHA gets it! E.g.: Laptop at bedside calls up patient e-records from one of 1,300 hospitals. Bar- coded wristband confirms meds. National Center for Patient Safety in Ann Arbor. Docs and researchers discuss optimal treatment regimens—research center in Durham NC. Doc measures & guidelines; e.g., pneumonia vaccinations from 50% to 84%. Blame- free system, modeled after airlines. “What’s needed in the U.S. is nothing short of a medical revolution and the VHA has gone further than most any other organization to revamp its culture and systems.”— Rand/Source:WSJ 12.10.2001

54. Computerized Physician Order Entry/CPOE: 5% of U.S. hospitals source: HealthLeaders/06.02

55. Winning By Acknowledging Failures Wernher Von Braun, the Redstone missile engineer who “confessed” & the bottle of champagne. Award to the sailor on the Carl Vinson—for reporting the lost tool. Amy Edmonson & the successful nursing units with the highest reported adverse drug events. Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected

56. PARADOX: Many, many formal case reviews … failure to systematically/ systemically/ statistically look at and act on evidence. C.f., Complications, Atul Gawande

57. Message: (1) Effective & encompassing use of IT is the healthcare revolution. (2) Get on all-the-way on board or get discarded. (3) The situation as it stands is pathetic.

58. Whose motto*: We hate change! *Choices: AMA, AHA. Both

59. Tom’s World

60. NEW BUSINESS. NEW CONTEXT.

61. All Bets Are Off.

62. “There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case

63. Way to Go, Guys … 2002 write downs from recent acquisitions …

64. $1,000, 000,000, 000* *$1 trillion (Source: Harper’s Index 04.2002)

65. The Destruction Imperative.

66. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

67. “Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.” Clayton Christensen, The Innovator’s Dilemma

68. Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock

69. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: I’m sure there are success stories out there, but at this moment I draw a blank.” Mark Sirower, The Synergy Trap

70. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

71. The [New] G e Way DYB.com

72. “Change the rules before somebody else does.” —Ralph Seferian, VP, Oracle

73. “Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01

74. Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen. Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity … in discontinuous/ambiguous times.

75. “BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are prescribed, and experts believe genetic differences are part of the reason. The technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies – it could limit the market for some of their blockbuster products – that many of them are resisting its widespread use.” The Wall Street Journal (06.18.2001)

76. “Pharmacogenomics could fundamentally change the nature of drug discovery and marketing, rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and money to craft a single medicine with mass-market appeal.” The Industry Standard (05.28.01)

77. Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22) Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser- guided munitions, and it marks a sea change for the industry. The implications for existing business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline: “minibuster.” Rob Arnold, Euro head of life sciences, PWC : “Once you start dealing with minority treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make money could be at a real advantage.”

78. NEW BUSINESS: NEW TECH

79. IBM’s Project eLiza!* * “Self-bootstrapping”/ “Artilects”

80. Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of Lund/SW) : 620. Lars Edenbrandt’s software: 738. *Only this time it matters!

81. “Most physicians believe that diagnosis can’t be reduced to a set of generalizations—to a ‘cookbook.’ … How often does my intuition lead me astray? The radical implication of the Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawed—it causes more mistakes than it prevents.” — Atul Gawande, Complications

82. “Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer- generated robots will take over the world.” – Stephen Hawking, in the German magazine Focus

83. IS/IT/Web … “On the Bus” or “Off the Bus.”

84. 100 square feet

85. Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

86. Autobytel: $400. Wal*Mart: 13%. Source: BW(05.13.2002)

87. WebWorld = Everything Web as a way to run your business’s innards Web as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry Web/B2B as ultimate wake-up call to “commodity producers” Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to World’s Best at Everything as next door neighbor

88. “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.” Ray Lane, Kleiner Perkins

89. “There’s no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.” Lewis Carroll

90. I’net … … allows you to dream dreams you could never have dreamed before!

91. HUMANA’s Dreams. Emphesys: “Put everything on the Internet.” CEO Mike McCallister, charge to 200-person “outside” I’net unit: “Imagine an ideal Web-based health insurance system and then create a product as close as possible to that vision.” Start with own employees: SmartSuite. Member employees: “Plan their own coverage and shoulder more costs.” Dell is model: “Fully customized health for every individual.” Marketing pitch for employers: “Buy choice for employees through a single source—Humana.” Source: Fortune/05.27.2002

92. “Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

93. Case: CRM

94. Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”

95. Amen! “The Age of the Never Satisfied Customer” Regis McKenna

96. “The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.” Kjell Nordström and Jonas Ridderstråle, Funky Business

97. “Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. … What we are witnessing is a collapse of that advantage, prestige and authority.” Michael Lewis, next

98. “A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumers—raising their expectations and, in many cases, handing them the controls. [Healthcare] consumers are driving radical, fundamental change.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

99. “Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. … What we are witnessing is a collapse of that advantage, prestige and authority.” Michael Lewis, next

100. Reuters (12.11.01): “Teens and young adults are flocking to the Web for health-related information as much as they are downloading music and playing games online and more often than shopping online, according to a national survey from the Kaiser Family Foundation.”

101. “We expect consumers to move into a position of dominance in the early years of the new century.” Dean Coddington, Elizabeth Fischer, Keith Moore & Richard Clarke, Beyond Managed Care

102. Today’s Healthcare “Consumer”: “skeptical and demanding” Source: Ian Morrison, Healthcare in the New Millennium

103. “Medical care has traditionally followed a ‘professional’ model, based on two assumptions: that patients are unable to become sufficiently informed about their own care to allow them a pivotal role, and that medical judgments are based on science.” Joseph Blumstein, Vanderbilt Law School

104. “He shook me up. He put his hand on my shoulder, and simply said, ‘Old friend, you have got to take charge of your own medical care.’ ” Hamilton Jordan, No Such Thing as a Bad Day (on a conversation with a doctor pal, following Jordan’s cancer diagnosis)

105. Consumer Imperatives Choice Control (Self-care, Self-management) Shared Medical Decision-making Customer Service Information Branding Source: Institute for the Future

106. “E-consumers … want knowledge are already connected want convenience want it to be all about them want control.” Douglas Goldstein, e-Healthcare

107. “Savior for the Sick” vs. “Partner for Good Health” Source: NPR/VPR 08.15.00

108. “No one currently ‘owns’ the eHealth Consumer. It’s an open playing field.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

109. “We find that eHealth consumers are willing to pay—and even switch health plans—for the services they most want.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

110. “The ‘curative model’ narrowly focuses on the goal of cure. … From many quarters comes evidence that the view of health should be expanded to encompass mental, social and spiritual well-being.” Institute for the Future

111. Internet User, F 41 $63,000 HHI 64% work FT 54% moms 6 hours/week online Source: NetSmart Research

112. Welcome to D.I.Y. Nation: “Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves.” Ray Lane, Oracle

113. “CRM has, almost universally, failed to live up to expectations.” Butler Group (UK)

114. CGE&Y (Paul Cole): “Pleasant Transaction” vs. “Systemic Opportunity.” “Better job of what we do today” vs. “Re- think overall enterprise strategy.”

115. Wells Fargo ($285B): Master of B&C $900M since ’99. 3M. 1/3 rd of chk acct customers on line. 5,400 branches: 4 of 5 who do product research on line purchase at branch. Wire transfer, save 30%; 17% less calls. Material diff to bottom line. Source: BW Online (03.20.02)

116. Problem #1*: The left hand doesn’t talk to the right hand. *And there is no “Problem #2.”

117. “The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organization Limits.

118. “In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don’t talk to each other.” Boston Globe (09.30.2001)

119. “Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike.” –Bill Owens, Lifting the Fog of War

120. “P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say Over Research*” — Advertising Age (03.25.2002) *Duh.

121. NEW BUSINESS. NEW VALUE PROPOSITION.

122. The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative.”

123. Base Case: The Sameness Trap

124. “Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, A Unique Moment

125. “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordström and Jonas Ridderstråle, Funky Business

126. The Big Day!

127. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

128. “These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett-Packard

129. Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B. Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

130. “We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems

131. “Customer Satisfaction” to “Customer Success” “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?” Bob Nardelli, GE Power Systems

132. Keep In Mind: Customer Satisfaction versus Customer Success

133. Was: “Big Iron” Transformer Dudes Division. Is: Air Traffic Controllers of Electrons.

134. Was: Bunch of Guys Who Make Circuit Breakers Division. Is: GE Industrial Systems.

135. Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”). Source: USA Today/06.14.2002

136. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

137. “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

138. “Our mission is to go from being the world’s premier timeshare—which is a large idea in a small industry—to being what we call the market makers for global travel and leisure. We need to enable developers to be involved in more travel and leisure products, rather than just the timeshare side.”— Ken May, RCI (Source: Developments)

139. “VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.” –New York Times (12.16.2001)

140. “ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

141. “We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm.” Jean Bellas, founder, SPACE (from SMPS Marketer)

142. Omnicom: 57% (of $6B) from marketing services

143. NEW BUSINESS. NEW BRAND.

144. A World of “Experiences.”

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

146. 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

147. “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

148. “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

149. “Guinness as a brand is all about community. It’s about bringing people together and sharing stories. ” — Ralph Ardill, Imagination, in re Guinness Storehouse

150. Brown.

151. The “Experience Ladder” Experiences Services Goods Raw Materials

152. 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00

153. Message: “Experience” is the “Last 80%” P.S.: “Experience” applies to all work!

154. 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00

155. Bob Lutz: “I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Source: NYT 10.19.01

156. It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional” Trapper: <$20 per beaver pelt. WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ/05.21.2002

157. The “Experience Ladder” Experiences Services Goods Raw Materials

158. Ladder Position Measure Solutions Success (Experiences) Services Satisfaction Goods Six-sigma

159. It all adds up to … THE BRAND.

160. The Heart of Branding …

161. “WHO ARE WE?”

162. “Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.” Jesper Kunde, A Unique Moment Jesper Kunde

163. “WHAT’S OUR STORY?”

164. “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

165. “Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs.” Source: Jean-Marie Dru, Disruption

166. “EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

167. 1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug HallDoug Hall

168. 2 Questions: “How likely are you to purchase this new product or service?” (95% to 100% weighting by execs) “How unique is this new product or service?” (0% to 5%*) *No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

169. “They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec, major consumer goods company

170. “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” Jerry Garcia

171. Brand = You Must Care! “Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.” Tom Chappell, Tom’s of MaineTom’s of Maine

172. “WHY DOES IT MATTER TO THE CLIENT?”

173. “EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ?”

174. Branding: Is-Is Not “Table” TNT is not: TNT is: TNT is not : Juvenile Contemporary Old-fashioned Mindless Meaningful Elitist Predictable Suspenseful Dull Frivolous Exciting Slow Superficial Powerful Self-important

175. NEW BUSINESS. NEW WORK.

176. The WOW Project.

177. “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

178. “Let’s make a dent in the universe.” Steve Jobs

179. WOW Projects for the “Powerless.”

180. Topic: Boss-free Implementation of STM /Stuff That MATTERS!

181. World’s Biggest Waste … Selling “Up”

182. THE IDEA: Model F4 F ind a F ellow F reak F araway

183. F2F!/K2K!/ 1@T/R.F!A.* *Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.

184. BOTTOM LINE The Enemy!

185. Joe J. Jones 1942 – 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

186. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

187. Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” *Fortune, article on “Most Admired Global Corporations”

188. WHO WILL GO TO STOCKHOLM? (Damn it.)

189. “Nobody gives you power. You just take it.” — Roseanne

190. The Sales 25.

191. The Sales25 : Great Salespeople … 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”) 4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customer’s org. (Relationships at all levels & functions.) 7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

192. It’s politics, stupid! (Play or sit on the sidelines.)

193. The Sales25 : Great Salespeople … 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”) 4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customer’s org. (Relationships at all levels & functions.) 7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

194. Great Salespeople … 8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?) 10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.)

195. Great Salespeople … 12. Think “Turnkey.” (It’s always your problem!) 13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.) 14. Help the customer get to know the vendor’s organization & build up their Rolodex. 15. Walk away from bad business. (Even if it gets you fired.) 16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.) 17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination. 18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy. 20. Seek several “cool customers”—who’ll drag you into Tomorrow land.

196. Great Salespeople … 21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.) 22. Send thank you notes by the truckload. (NOT E- NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple!

197. “The deepest human need is the need to be appreciated.” William James

198. “The two most powerful things in existence: a kind word and a thoughtful gesture.” Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

199. “Thank you” 17 Men: 8 4 Women: 19

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

201. “Investors are looking more and more for a relationship with their financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men.” Hardwick Simmons, CEO, Prudential Securities

202. “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

203. Great Salespeople … 21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.) 22. Send thank you notes by the truckload. (NOT E- NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple!

204. NEW BUSINESS. NEW YOU.

205. Re-inventing the Individual: BRAND YOU. (Or Else.)

206. “If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed, and that increasingly means you won’t get paid much either.” Michael Goldhaber, Wired

207. Minimum New Work SurvivalSkillsKit2002 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal

208. Sam’s Secret #1!

209. Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal

210. “My ancestors were printers in Amsterdam from 1510 or so until 1750, and during that entire time they didn’t have to learn anything new.” Peter Drucker, Business 2.0 (08.22.00)

211. “Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” Peter Drucker, Business 2.0 (22August2000)

212. 26.3

213. 3 Weeks in May “Training” & Prep: 187 “Work”: 41 (“Other”: 17)

214. 1% vs. 367%

215. Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why don’t businesspeople do it?

216. Invent. Reinvent. Repeat. Source: HP banner ad

217. Boss Work: The Talent Imperative.

218. Brand = Talent.* *Duh.

219. Model 25/8/53 Sports Franchise GM

220. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” Warren Bennis & Patricia Ward Biederman, Organizing Genius

221. Visibly energetic/ Passionate/ Enthusiastic … about everything. Engaging/ Inspires others. (Inspires the interviewer!) Loves messes & pressure. Impatient/ Action fanatic. A finisher. Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about her work.) Smart. Curious/ Eclectic interests/ A little (or more) weird. Well-developed sense of humor/ Fun to be around. ****** No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: “Did you visibly grow while working with X?” / “How has the department/team grown on a ‘world-class’ scale during X’s tenure?”)

222. From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

223. “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent

224. Message: Some people are better than other people. Some people are a helluva lot better than other people.

225. “Where do good new ideas come from? That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.” Nicholas Negroponte

226. “Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix- and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

227. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week, 11.20.00

228. 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. Source: Judy B. Rosener, America’s Competitive SecretJudy B. Rosener

229. The Cracked Ones Let in the Light “Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.” David Ogilvy

230. “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01)

231. MantraM3 Talent = Brand

232. What’s your company’s … EVP? Employee Value Proposition, per Ed Michaels et al., The War for Talent

233. EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent

234. “H.R.” to “H.E.D.” ??? H uman E nablement D epartment

235. “I don’t know.”

236. Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers- leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!

237. THINK WEIRD … the H.V.A. Bedrock.

238. THINK WEIRD: The High Standard Deviation Enterprise.

239. Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

240. Problem #1: “Corporate consciousness is predictably centered around the mainstream. The best customers, biggest competitors, and model employees are almost invariably the focus of attention.” Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

241. CUSTOMERS: “Future- defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.” Adrian Slywotzky, Mercer Consultants

242. “The future has already happened. It’s just not evenly distributed.” Adrian Slywotzky

243. W.I.W? 20 of 26 7 of top 10*

244. *P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 categories. (The “billion- dollar” problem.) Source: Advertising Age 01.21.2002/BofA Securities

245. Primary Obstacles to “Marketing-driven Change” 1. Fear of “cannibalism.” 2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.” 3.Creating “sustainable advantage.” Source: John-Marie Dru, Disruption

246. Account planning has become “focus group balloting.” — Lee Clow

247. “Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition.” Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

248. “BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are prescribed, and experts believe genetic differences are part of the reason. The technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies – it could limit the market for some of their blockbuster products – that many of them are resisting its widespread use.” The Wall Street Journal (06.18.2001)

249. “Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value.” Clayton Christensen, The Innovator’s Dilemma

250. “Sony is the epitome of discontinuity. It sees all its competitors’ accomplishments merely as conventions to be overturned.” Source: Jean-Marie Dru, Disruption

251. COMPETITORS: “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.” Mark Twain

252. Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01)

253. Suppliers: “There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.” Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

254. WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation

255. Advice to Corporate Leaders: “Consider the metaphor of the windmill: You can harness raw power but you can’t control it. … Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. … Hire a corporate anthropologist to analyze how tolerant your organization is of deviants and other innovators. … Once the anthropologist leaves, hire a shaman to drive out the evil spirits of conformity. …” Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

256. Deviants, Inc. “Deviance tells the story of every mass market ever created. What starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.” Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

257. Big Pharma (Summary): (1) Discovery … too complex, wrong scientific emphasis. (2) Distribution … reps’ role under heavy fire. (3) “Solution” = More consolidation = Stupid. (D + D = G???) (4) Short your stock.

258. NEW BUSINESS. NEW MARKETS.

259. Trends I: Women Roar.* *Duh II.

260. Women & the Marketspace.

261. ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (“home projects”) … 80% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80%

262. 2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

263. $4.8T > Japan 9M/27.5M/$3.6T > Germany

264. Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

265. FemaleThink/ Popcorn “Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.” “He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”Popcorn

266. Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps: Women love to talk. Men talk silently to themselves. Women think aloud. Women talk, men feel nagged. Women multitask. Women are indirect. Men are direct. Women talk emotively, men are literal. Men listen like statues. Boys like things, girls like people. Boys compete, girls cooperate. Men hate to be wrong. Men hide their emotions.

267. Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold Faith Popcorn

268. EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

269. “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

270. What If … “What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?” “What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills?” EVEolution

271. The New New Jiffy Lube “In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation required’ experience.” New JL: “Control over her environment. Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability.” EVEolution

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

273. Not ! “Year of the Woman”

274. Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF!

275. STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that women’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters

276. Psssst! Wanna see my “porn” collection?

277. What is your “Pull Strategy” re women???

278. Trends II: Boomer Bonanza/Godzilla Geezer.

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

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

281. 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

282. Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

283. “NOT ACTING THEIR AGE : As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?” USN&WR Cover/06.01

284. 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

285. Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

286. “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

287. “Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

288. “Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year- olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market?” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

289. “ ‘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

290. Bottom Line: Are you up for totally rethinking what you are here for?

291. HealthCare 21 Tom Peters/03.26.2002

292. HealthCare21: 21 Ideas for Century21 1. Hospitals kill people. (And those they don’t kill, they wound.) (And they deny it.) (ERRORS RULE!) 2. Hustling ambulances kill pedestrians—and don’t save patients. 3. Doctors are spoiled brats—who don’t like measurements. Or any form of “interference.” Docs are also cover-up artists … par excellence (the REAL Hippocratic Oath: “DON’T RAT ON A FELLOW DOC”). 4. Most prescriptions don’t work … for the PARTICULAR individual in question. 5. THERE IS LITTLE “SCIENCE” IN “MEDICINE.” (See state to state variations, country to country variations, the general lack of agreed upon treatments.) 6. You could save thousands of lives (think Schlindler)—if you just outlawed handwritten prescriptions. 7. “Detailers” will disappear … when GenX docs arrive.

293. HealthCare21 (Cont.) 8. IS/IT in hospitals is sub-primitive (despite enormous expenditures). 9. ELECTRONIC MEDICAL RECORDS … PERIOD. (PLEASE.) 10. Systemic IS/IT is worse—links between docs, insurers, providers, patients. 11. The Web WILL Liberate. (Info = Power.) (BELIEVE IT.) 12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e CONTROL. NOW. “LEADERSHIP” OF AGING PROCESS.) 13. “Drug Discovery” processes at Big Pharma are … hopelessly over-complicated. (???: Bye Bye … Big Pharma.) 14. 90% of the fix: HARVEST THE LOW-HANGING FRUIT. “They” are … NOT … the Enemy. Damn it. 15. Insured “consumers” are spoiled brats … who act as if H.C. is a Free Good. (MAKE THE BASTIDS PAY … at least a little more than a little.)

294. HealthCare21 (Cont.) 16. Genetic engineering & biotech change … EVERYTHING. (Within 10 years.) 17. New Medical Devices change … EVERYTHING. (Within 20 years.) 18. IS/IT changes … EVERYTHING. (Within 10-15 years.) 19. New Docs change … EVERYTHING. (Within 10-15 years.) 20. New Patients change … EVERYTHING. (Within 5 years.) * *

295. HealthCare21 (Cont.) 21. ALL THIS = ENORMOUS OPPORTUNITY. The Opportunity of Several Lifetimes. (For the Bold & Brave.) H’Care WILL be … TOTALLY … re-invented in the next two decades. (And, hey, it is our largest “industry.”)

296. Bottom Line: Are you up for totally rethinking what you are here for?

297. Have you changed civilization today? Source: HP banner ad