Presentation is loading. Please wait.

Presentation is loading. Please wait.


Similar presentations

Presentation on theme: "TOM PETERS LESSONS IN LEADERSHIP2000 1 FEBRUARY ALBUQUERQUE."— Presentation transcript:



3 Seminar Y2K Brand Everything : Distinct or Extinct

4 Microsoft = R.O.W. Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg Source: Business Week data through 5-99

5 Microsoft = R.O.W. (II) Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg + McDonalds + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats Source: Yastrow Marketing (through )

6 No Wiggle Room! Incrementalism is innovations worst enemy. Nicholas Negroponte

7 Just Say No … I dont intend to be known as the King of the Tinkerers. CEO, large financial services company (New York, 5-99)

8 Forces at Work The Destruction Imperative!

9 64/24

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

11 It is generally much easier to kill an organization than change it substantially. Kevin Kelly, Out of Control

12 Q: What do you do when you are a big, dopey company and out of ideas?

13 A: You merge with another big, dopey company that doesnt have any ideas either.

14 R: An incredibly big, incredibly dopey company … going nowhere.

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

16 I feel betrayed. I bought stock in a company that was going to change the world. I didnt buy a big, fat, stupid conglomerate. And now Ive got one. Alan Towers, consultant, quoted in Business Week [BW: The irony is that AOL Time Warner is a vertically integrated conglomerate. Not exactly the sort of nimble competitor that will thrive in cyberspace.]

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

18 We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property. Art Reidel, CEO, Pharsight

19 Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. … - John Chambers, Cisco Systems

20 Dept. Head = Sports GM Dept. Head = V.C.

21 Silicon Valley Success Secrets Pursuit of risk: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpot Source: The Economist

22 R & D Intels venture fund: 275 investments, $3.5B Source: Fast Company (12-99)

23 EcoNets/Internet Zaibatsus The model is about partial acquisitions and ownerships that then form a whole. Each part has to have value separately, be able to raise capital separately, and motivate employees separately. Corporations of the past never had that. Flip Filipowski, divine interVentures (Red Herring)

24 The brick and mortars will die, no matter what. … So you have to take your best employees and best businesses and spin them off and just own 40 percent of everything thats left. Do that and you survive. Flip Filipowski, divine interVentures (Red Herring)


26 * (GE)

27 It used to be that the big ate the small. Now the fast eat the slow. Geoff Yang, IVP/ (Institutional Venture Partners)

28 [E.g.: Craig Venter/ Celera Genomics]

29 The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M

30 But what if [former head of strategic planner at Royal Dutch Shell] Arie de Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever. Kjell Nordstrom and Jonas Ridderstrale, Funky Business

31 ALL OF THESE CONVERSATIONS TODAY ABOUT THE WEB WILL APPEAR SO BLOODY DAMN SILLY AND PEDESTRIAN TEN … FIVE? … THREE? … YEARS FROM NOW. Tom Peters (11-99) P.S.: Read Ray Kurzweils The Age of Spiritual Machines: When Computers Exceed Human Intelligence

32 BW: human brain has only a short time left as the smartest thing on earth/ subjugate humanity by 2050 Health Forum Journal: In one generation or less, every element of health care, every assumption, will be changed or gone./ We are not aging gracefully. Dr. George Poste, SKB: 500 molecular targets in 95 to 70,000 in 99/ 35 compounds per year to2M

33 Wired [Feb 2000] Cyborg 1.0: Kevin Warwick Outlines His Plan to Become One with His Computer

34 Medicine looks likely to change more in the next 20 years than it has in the last 200. British Medical Journal ( )

35 [ TTTTTurbulent Times! Top 3 Americans > 48 poorest nations Source: Newsweek 12-99]

36 Brand Inside PSF 1: Brand Org!

37 108 X 5 vs. 8 X 1* * 540 vs. 8


39 The coefficient of friction associated with the grunge of business is amazing! Michael Schrage

40 Cemex and FDX!

41 CCC Information Services!

42 Assetless Company J.B.

43 RR on Sara Lee The most profitable businesses in the future will act as knowledge brokers, linking insights into whats available with insights into the customers individual needs and preferences.

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

45 The &-!!+#$% in the middle* Jim Clark on Healtheon * twixt docs, patients and providers; $250B in waste; source: Michael Lewis, The New New Thing

46 Dont own nothin if you can help it. If you can, rent your shoes. F.G.

47 R&D Outsourcing/ Big Pharma 3:1+ (70% now; 5% in 5 years) 1:2+ (5% now; 20% in 5 years) Source: IN VIVO

48 PSF 1.0 Professional Service Firm Conversion Kit / Release 1.0

49 White Collar Revolution (Finally!!) 90% … in 10 years! PSFs ….. All! Brand Yous … All! WOW Projects … All!

50 PSF 1.0 Department Head to … Managing Partner, HR [IS, etc.] Inc.


52 support function / cost center / bureaucratic drag or … Rock Stars of the Age of Talent

53 Why are there no books on how to create a Cool, Rocking, WOW-producing Finance Department?

54 Real PSF … –Think Inc. (Mindset = Step No.1!) –Clients rule! –Engage Clients in deep dialog/ Join us in an Adventure/ Fire duds! –Work = WOW Projects (100%) –Practice serial monogamy –Think impact!/ Embrace politics! –Master the economics!

55 Real PSF … –WE HELP PEOPLE! –Co-habit with the Client! –Create a Culture of Urgency! –Love thy Support Staff! –You need a Methodology! –Obsess on R&D! –BECOME A CONNOISSEUR OF TALENT!

56 Real PSF … WE OWN THIS PLACE! THIS IS COOL STUFF! WE ARE THE WORLD!* *Why no books on Cool Finance Depts.?

57 The 7Ps of PSF 1.0 Projects! Passion! Provocation! Partnership! Politics! Professionalism! Performance!

58 C.I.O. to C.E.F.R.N.S.*

59 * C hief E vangelist F or R eally N eat S tuff

60 [ Words to Live By … Hierarchy is an organization with its face toward the CEO and its ass toward the customer. Kjell Nordstrom and Jonas Ridderstrale, Funky Business]

61 Brand Inside PSF 2: Brand Work!

62 Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec

63 But Does It Matter???? On time, on budget … who cares? anon. seminar participant (4/99)

64 You really got to me. So many of our information technology projects take on a life of their own, and I know theyll never end up as more than mediocre successes. CEO, F100 financial services company (10-98)

65 WOW Project Anatomy I. Create! II. Sell! III. Implement! IV. Exit!

66 I. Create! Reframe! THERE ARE NO SMALL PROJECTS! Observe & Record!! Head for the trenches! You gotta love it! Measure: WOW!, Beauty, Raving Fans, Impact! Build a no-baloney Business Plan Create community. Now! Obsess on … the End User. Now!

67 Reframers Rules: Rule 1: Never accept an assignment as given! Rule 2: Youre never so powerful as when you are powerless! Rule 3: Every small project contains the entire enterprise DNA!

68 Measures –WOW! –Beauty! –Raving Fans! –Impact!

69 E.g.: WOW Scale 1. … Dull as dishwater. 5. … Gets the job done. 7. … Good work!. 10. … A serious Braggable!

70 Kaiser:

71 Liberty Ship 2 years 240 days 9 hours 4 days, 15 hours, 29 minutes

72 Every project we take on starts with a question: How can we do whats never been done before? Stuart Hornery, CEO, Lend Lease

73 WOW Project Acid Test Can you explain it - with zest - to your 14-year-old?

74 The Alumni Meeting Test!

75 II. Sell! Master The Pitch! Build Buzz. Consciously. Network maniacally! Preach to the choir! Forget your enemies. [Surround and marginalize!] Money kills! SELL, SELL, SELL!

76 III. Implement! - Live, eat, sleep … Quick Prototype -Play! - Keep on recruiting! (Sell!) - Obsess on the End User Community! (Sell!) - Become a Milestone Maniac! / a Timeline Tyrant! / a List Freak! / find Ms. Last 2%! - Appoint a Marketing Director! - Keep the WOW front and center!

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

78 You cant be a serious innovator unless and until you are ready, willing and able to seriously play. Serious play is not an oxymoron; it is the essence of innovation. Michael Schrage, Serious Play

79 I view models and prototypes as the battleground for thoughts and behaviors. Michael Schrage

80 Think about It!? Innovation = Reaction to the Prototype Michael Schrage

81 Prototypers Laws Define a small, practical test of something on a page or less of text. Now. Gather found materials … on the [very] cheap. Find a/one partner-customer wholl provide a test site. Set a very tight deadline of about 5 days for the next concrete step. Conduct the test! Debrief A.S.A.P. Set the next test date. Now. [No more than 5 days hence.]

82 Secret No. 1: Go horizontal: Find a (one!) line ally in the Boonies Secret No. 2: Powerless allies are Cool! Secret No. 3: Passion Rules! Secret No. 4: Become a Prototyping Maniac! Secret No. 5: Embrace Politics / Community Organizing!

83 K2K

84 IV. Exit! Sell out! / Embrace The Suits! Recruit a passionate Ms./Mr. Follow-up! Seed your freaks into the mainstream! Celebrate! Exit!

85 SOOOO … HOW MANY OF YOUR COLLEAGUES ARE BACK HOME AT WORK ON NO-BALONEY … WOW* PROJECTS! * WOW = Will be remembered fondly/ bragged about 5+ years from now


87 T.T.D.: Now! –List all your projects. –Carefully describe a WOW Outcome for you and the Client. –Score (!) all projects on WOW, Beauty, Impact, Raving Fan-hood. –Pick one project with a high combined score. –Draft a one-page New Description that emphasizes WOW, Beauty, etc. –Circulate and edit … for three days. –Reduce to 5 bullet points.

88 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

89 Characteristics of the Also Rans –minimize risk –respect the chain of command –support the boss –make budget Source: Fortune on most admired global corporations

90 [We are not trying to WOW you up. We think you are/have WOW. We are trying to give you permission to be WOW.]


92 1) Turn ignition key. 2) Shift into drive. 3) Press foot firmly on the throat of mediocrity. Source: Mercedes ad

93 Brand Inside PSF 3: Brand You!

94 The fundamental unit of the new economy is not the corporation, but the individual. Tasks arent assigned and controlled through a stable chain of command but are carried out autonomously by independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment. Thomas Malone and Robert Laubacher

95 DISTINCT … OR EXTINCT!If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed and that increasingly means you wont get paid much, either. Michael Goldhaber, Wired

96 If one quarter cant make the journey, thats the way it has to be. Carly Fiorina (1-00/Forbes)

97 Personal Brand Equity Eval –My current Project is challenging me … –New things Ive learned in the last 90 days include … –My public recognition program consists of … –I am known for … –Additions to my Rolodex include … –My resume is discernibly different from last years at this time …

98 Icon Woman … –Totally turned on by her work! –It matters / a WOW Project! –It is … COOL! –It is … BEAUTIFUL! –She is … in your face! –She is an … adventurer! –She is … CEO of her own life!

99 Icon Woman … –She is … at least … a little funky! –Her curiosity is … insatiable! –She thinks screwups are … as normal as breathing! –She hangs out with some … seriously rad Dudes! –She is not God. She is not Bionic Woman. She is … determined to make a damned difference!

100 Well-behaved women rarely make history. Anita Borg, Institute for Women and Technology

101 Icon Woman Meets the Web … –submits resume on the Web –recruited on the Web –hired on the Web –trained on the Web –creates and conducts projects with virtual teams on the Web –manages project and client follow-up on the Web –manages career/reputation-building on the Web

102 The Brand Called URL/ Nathan Shedroff, Vivid Studios 24 X 7 storefront devoted exclusively to The Brand Called You. NS Personal publicity represents the next big paradigm shift on the Web. Jerry Yang, Yahoo!

103 R.D.A. Rate: 15%?, 25%? Formal Investment Strategy/ R.I.P.

104 R.I.P. IS IT... WOW!?

105 There is an internal and an external pressure to keep doing the same thing. People liked it. You got rewarded. So do it again! The same only different. So it becomes something you have to fight. Michael Crichton

106 R.I.P. 10 … Major job change [new area of concentration]; major offsite educational investment; extensive sabbatical [oddball learning experience of > 2 months]; exceptional community project [presidency of fundraising drive, run for school board].

107 R.I.P Extensive course work in oddball area of passionate interest; major off- the-job activity [community involvement, learn to play the cello, study Chinese]. 1 … Company training, as directed.

108 R.I.P./Practical Step No. 1 Go some place totally different for vacation!

109 R.I.P. Use by yourself. Use with your mates. Use [quantitatively?] as a measure of departmental/ P.S.F. renewal. Use in formal eval process.

110 [ Training Y2K Anytime, anywhere! Whatever! Concocted by the employee/ Training Account]

111 Assignment! Construct a 1/8-page or 1/4-page ad for Brand You … for the Yellow Pages

112 [ How About It? Replace your current evaluation process with Yellow Pages ads.]

113 Bill Parcells World/ Brand You World! BLAME NOBODY! EXPECT NOTHING! DO SOMETHING! Source: NY Post

114 Its Attitude, Baby! 9-10, , 1.28

115 Seminar Y2K Message: Distinct … or Extinct!

116 Everything can be taken from man but one thing: the last of human freedoms - to choose ones own attitude in any set of circumstances, to choose ones own way. Victor Frankl, Auschwitz survivor

117 2 folks in Hartford …


119 There comes a time in everyones life when they realize they work for a dead guy. [ad]

120 Brand Inside PSF 4: Brand Talent!

121 Issue Y2K The Great War for Talent !

122 Develop people quickly and effectively … 5% Truly know who our strongest and weakest performers are … 17% Source: War for Talent research/ McKinsey & Co.

123 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

124 Alan Kay on PARCs Bob Taylor He was a connoisseur of talent.

125 A Connoisseur of Talent … –Spends time on Talent! –Becomes a student of Talent! –Puts Talent on the agenda! –Practices D.I.Y. –Uses Plain English! (If you want sunny … ask for sunny!) –Creates Workspaces that foster energy, entrepreneurship and creativity! –Recruits from oddball places! / Recruits Oddballs!

126 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

127 Axiom: Never hire anyone without an aberration in their background. (Find the One Ton Cookie Man!)

128 A Connoisseur of Talent … –Recruits M.I. (Gardner: Logical-mathematical, linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, intrapersonal-others) –Recruits arts! –Becomes de facto C.D.O. (Chief Diversity Officer) –Turns the pay scale upside down! / Pays Talent! – Rewards & Promotes all on Talent Development Skills! –Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

129 Every school I visited was participating in the systematic suppression of creative genius. Gordon MacKenzie

130 Where do good new ideas come from?... Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines. Nicholas Negroponte

131 Attributes of Those Who Made the 10th Grade History Book –Committed! –Determined to make a difference! –Focused! –Passionate! –Irrational about their lifes project! –Ahead of their time/ Paradigm busters! –Impatient/ Action Obsessed!

132 Attributes of Those Who Made the 10 th Grade History Book –Made lots of people mad! –Flouted the chain of command! –Creative / Quirky / Peculiar! –Rebels! –Irreverent! –Masters of improv / Thrive on chaos/ Exploit chaos!

133 Attributes of Those Who Made the 10 th Grade History Book –Forgiveness > Permission –Bone honest! –Flawed as the dickens! – In touch with their followers aspirations –Damn good at what they do!

134 Conformity is the enemy of freedom and the jailer of growth. J.F.K.

135 Just Say No to Grout! Participant: Dont you need grout between the tiles? TP: No! [med staff, NFL Special Teams,waiters, PFCs, cymbals player, bit parts, waiters]

136 [ TPs Ideal Job: Head of Housekeeping!]

137 The boundaries for acceptable weirdness have dramatically expanded. Michael Schrage

138 Yes! Director of Bringing in the Really Cool People

139 [ All You Need to Know? Chief Evangelist For Really Neat Stuff Director Of Bringing In The Really Cool People ]

140 Talent War Y2K! –All out!/ Time consuming! –Never ending!/ Unwinnable! –Includes everybody!/ Everybodys game! (Were all in sales.) –Expensive! –Cool!/ WOW!/ Fun!/ Creative! –Strategic!/ Core competence!

141 Talent = Brand

142 Brand Outside = Brand Inside

143 Emotional values are replacing physical attributes as the fundamental market influence. Only with a strong spirit at its foundation can a company achieve strong market position. Jesper Kunde, Corporate Religion

144 PSF Y2K Final Exam –Are you working with awesome/freaky peers? –Are you working with cool/pioneering Clients? –Are you a player? –Are you pushing the envelope and putting yourself at risk on every project? –Are you doing WOW work? –Are you having fun? –Are a lotta theys mad at you? –Will you look back on all this as the time of your life?

145 Brand Outside Context: No Commodities!

146 In the Beginning … The audit has become a commodity. Big 5 audit partner to TP

147 Quality Not Enough! Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage. J.D. Power

148 Quality Not Enough! While everything may be better, it is also increasingly the same. Paul Goldberger on retail, The Sameness of Things, The New York Times

149 Whats Special? Customers will try low cost providers because the Majors have not given them any clear reason not to. Leading Insurance Industry Analyst (10-98)

150 We make over three new product announcements a day. Can you remember them? Our customers cant! Carly Fiorina, HP

151 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, similar warranties and similar quality. Kjell Nordstrom and Jonas Ridderstrale, Funky Business

152 The 10X/10X Phenomenon 10 Times Better/ 10 Times Less Different

153 TPs Campaign Y2K Just say [shout] No! to the inevitable commoditization of anything.

154 When we did it right it was still pretty ordinary. Barry Gibbons on Nightmare No. 1

155 Pretzel Crumb-less-ness Plus … The Ritz Carlton Experience enlivens the senses, instills well-being and fulfills even the unexpressed wishes and needs of the guest. from the Ritz Carlton Credo

156 We want to create waves of lust for our product. Andy Grove (on the Pentium Processor)

157 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

158 Lust Hierarchy Satisfy … Conform to Requirements … Exceed Expectations … Delight! … WOW! … Lust! … ONLY ONES WHO DO WHAT WE DO!

159 New Customer Offering at Virgin Must Be: … of the best quality … innovative … provide good value for money … challenge existing alternatives … add a sense of fun or cheekiness Source: Kjell Nordstrom and Jonas Ridderstrale, Funky Business

160 customer satisfaction to customer success Source: GE Power Systems

161 Were getting better at [Six Sigma] every day. But we really need to think about the customers profitability. Are customers bottom lines really benefiting from what we provide them? Bob Nardelli, GE Power Systems

162 Context: No to inevitable commoditization S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: Its the Experience! Bottom Line: Glorious Age of the BRAND!


164 Brand Outside Strategy 1 : Lead the Customer!

165 The customer is a rear view mirror, not a guide to the future. George Colony, Forrester Research If you worship at the throne of the voice of the customer, youll get only incremental advances. Joseph Morone, President, Bentley College

166 Early Customer Rejection Post-Its [12 years!] Chrysler Minivans VCRs Fax machines FedEx CNN Heart-assist pumps Etc. Source: Fortune

167 Good = Bad/ 1 of 30,000 We are crazy. We should do something when people say it is crazy. If people say something is good, it means someone else is already doing it. Hajime Mitarai, Canon

168 Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown. Kevin Kelly, New Rules for the New Economy

169 The numbers [declining market share] dont lie. Detroits single biggest failure has been its unwillingness to innovate. It is less risky to simply develop a new version of an existing product than to pioneer a new category. Alex Taylor (Fortune)


171 Benchmarking, Perils of … The best swordsman in the world doesnt need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesnt do the thing he ought to do, and so the expert isnt prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot. Mark Twain

172 Lead customers! K2K redux!

173 Amen!The Age of the Never Satisfied Customer Regis McKenna

174 Context: No to inevitable commoditization S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: Its the Experience! Bottom Line: Glorious Age of the BRAND!

175 Brand Outside Strategy 2 : Master E-Commerce!

176 $30,000,000. = ???

177 Dells Web sales … daily

178 350,000 = ?????

179 New items going on sale at eBay … daily (12-99)

180 2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)

181 Tomorrow Today: Cisco! $7B of $10B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)

182 And Larry?

183 Business 2.0: 20 Industries About To Be Fossilized by The Net (3-99) Travel Agents ($2B now, $30B in 2003); Apparel (1-21); Autos (4-213); Home Electronics (1-21); Paper and Office Supplies (1-65); Food (<1-54); Utilities (7-170); Computing (20-400); Newspapers ($5B of $19B classifieds)

184 Cherry Picking Vertical Markets $370B; sellers pay $5K to $8K for storefront; 5% to 10% cut Hook: community services (database, catalogs, forums, industry job bank, etc.)

185 W.W. Grainger* 2X phone/fax *$220B MRO market (per Business 2.0/02-00)

186 B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters ) T

187 Consumer [Health Care] Sovereignty!* E.g.: Empowered consumers influenced by medical advertising and educated by information on the Internet are driving demand for new vision correction options. Start Up (10-99) * Take your White Coat and …

188 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

189 Autoweb. Take the Wheel. Advertising Age

190 Shop in your Underwear Source: SMd logo for ae = American Eagle Outfitters

191 Psych 101: Strongest Force on Earth? My n eed to be in perceived control of my universe!

192 Anne Busquet/ American Express Not: Age of the Internet Is: Age of Customer Control

193 IT enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, patient, employee or citizen is dead. Kjell Nordstrom and Jonas Ridderstrale, Funky Business

194 Patricia Seybolds Basics: The E-Customer Bill of Rights Dont waste my time! Remember who I am! Make it easy for me to order and procure service! Customize your products and services for me! Source:

195 Welcome back, Tommy!

196 In the network economy, the Website becomes the companys primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post- sales support all rolled into one. Jakob Nielsen, Designing Web Usability

197 Read This. No: INGEST This! Jakob Nielsen Designing Web Usability: The Practice of Simplicity* *

198 Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy. Jakob Nielsen, Nielsen Norman Group

199 Red Herring (01/00) 75% of online shoppers dont complete their purchase!

200 Nielsen/Designing Web Usability All Web projects are customer- interface projects! Simplicity rules! Make it easy for customers to perform useful tasks! Less cool, more useful! Speed rules! Link … madly!

201 Nielsen/ Continued Must work … on a small screen! Must work … w/o graphics loading! Scannability rules! [Users pick out key words.] Navigation page: No scrolling! Remember: 25% to 50% successful use

202 When you click on Yahoo! today you get the same simple, nearly graphics-free home page you would have seen had you clicked three years ago. Fortune, on Zod Nazem, Yahoo! CTO

203 Where does the Internet rank in priority? Its No. 1, 2, 3, and 4. Jack Welch

204 Web Strategy: GE Power Systems Launch and Learn/ 4 sites in 30 days

205 / 10 weeks!

206 Change … Or Die! Most of the brick and mortars look at the Internet as an add-on business … until they get a major scare. Then they either change or die. … You have to put all your heart and soul in that direction, the way Charles Schwab and Dell did. Flip Filipowski, divine interVentures (Red Herring)

207 I have this chance for … changing the world. Marco Boerries, Sun, re StarOffice (Business 2.0, 2-00)

208 There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!

209 Mags Advertising Age Business 2.0 Fast Company Red Herring Scientific American Wired

210 Context: No to inevitable commoditization S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: Its the Experience! Bottom Line: Glorious Age of the BRAND!

211 Brand Outside Strategy 3 : Women Rule!

212 ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.

213 48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

214 Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week (11-99)

215 $3.3T + $1.5T = $4.8T* * Larger than Japan!

216 Most Under-reported story! 9M*/20M+/$4T [> Germany] * 400K in 72; 132% since 92; source: NFWBO, Cognetics

217 New golfers … 37% Basketball … 13.5M 1 in 27 (70) … 1 in 3 (96)

218 1874?

219 1874 … Jock Strap 1977 … Jogbra K 1996 … 42 M

220 Yikes? Ho-hum? 1970 … 1% 2000 … 50%

221 OPPORTUNITY NO. 1!* [* No shit!]

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

223 FemaleThink/ Popcorn Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons.... He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.

224 Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They usually dont like asking where things are. Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly hes ready to buy. … For a man, ignoring the price tag is almost a sign of virility. Paco Underhill, Why We Buy* [*Buy this book!]

225 Women and Financial Advisors Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it. Women do not want … an in-your-face sales pitch Source: Kathleen Boyle, Wheat Boyle Butcher Singer

226 Women and Healthcare Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $$$$ [and constitute 2/3 of health care employees]. Source: Patricia Braus, Marketing Healthcare to Women

227 Marketing to Women: Help Them Save Time! 80% … work 86% … cook 58% … run errands with kids 38% … take child to school 21% … go to the gym 21% … take outside classes

228 How Many Gigs You Got, Man? Hard to believe … Different criteria … Every research study weve done indicates that women really care about the relationship with their vendor. Robin Sternberg/ IBM

229 [The Net hasnt lived up to its hype. Its a distant, cold, alien, threatening world called cyberspace. The challenge is to make the Net into something intimate, warm, friendly, useful, personal. Carly Fiorina, CEO, Comdex 99]

230 Not!! Year of the Woman

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

232 What kind of car does Mommy want?

233 I didnt know [company] were giving company cars to secretaries. Source: UK financial services CEO, 12/99

234 Not a Morality Play! It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We are marketing to women entrepreneurs because it is a huge opportunity. Cherie Piebes

235 Top 25 Cos. For Executive Women/Working Woman/1Y2K Avon … Chas. Schwab … Scholastic … Fannie Mae … Dayton Hudson … Knight Ridder … Pitney Bowes … Advantica … Gap … Nordstrom … Sallie Mae … Gannett … Golden West … Aetna … Mattel … IBM … SBC Comm. … Merck … State Street Corp. … Sara Lee … Prudential … Baxter … P&G … WellPoint … Xerox

236 Speaking of Enormous [Missed] [Huge] Opportunities...

237 74M/ Front Edge:55 At each stage of their lives, the needs and desires of the baby boomers have become the dominant concerns of American business and popular culture. If you can anticipate the movement of the baby-boom generations life-span migration, you can see the future. Ken Dychtwald, Age Wave

238 Aging/Elderly 2X growth rate $$$$$$$$$$$$ Im in charge! Experiences vs. Products Design revolution! Good source: Ken Dychtwald, Age Wave

239 Priorities: Aging/Elderly Experiences … Convenience … Comfort … Access … Respect!

240 Context: No to inevitable commoditization S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: Its the Experience! Bottom Line: Glorious Age of the BRAND!

241 Brand Outside Strategy 4 : Design Rules!

242 And Tomorrow … Fifteen years ago companies competed on price. Now Its quality. Tomorrow its design. Robert Hayes

243 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

244 Design is treated like a religion at BMW. Fortune (10/98)

245 Drop-dead Charm! The new Beetle fails at most categories. The only thing it doesnt fail in is drop-dead charm. Jerry Hirshberg, Nissan Design International

246 Object of Desire! Every now and then, a design comes along that radically changes the way we think about a particular object. Case in point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at. Katherine McCoy, Michael McCoy, Illinois Institute of Technology

247 [ Design as Soul We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service. Steve Jobs]

248 Check Out the Language: Tomorrow its design … Design is the only thing … Design is … religion... Drop-dead charm … Object of desire … Soul …

249 The I.D. [International Design] Forty* Airstream … Alfred A. Knopf … Apple Computer … … Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance … Nickelodeon … Patagonia … The New York Yankees … 3M … Etc. * List No. 1, 1999

250 Unconventional [Design] Messages Not about... Lumpy Objects! Not about... $79,000 objects

251 One-sixth Second per Item! During the 30 minutes you spend on an average trip to the supermarket, about 30,000 products vie to win your attention and ultimately to make you believe in their promise. Thomas Hine, The Total Package

252 [ Design Moments! Shopping cart = 2X heavy items Source: Wall Street Journal ( ) ]

253 Car designers need to create a story. Every car provides an opportunity to create an adventure. … The Prowler makes you smile. Why? Because its focused. It has a plot, a reason for being, a passion. Freeman Thomas, co-designer VW Beetle; designer Audi TT

254 Hmmmm(?): Only Words … Story Adventure Smile Focus Plot Passion

255 Message: Services are Not Intangible! You give off hundreds of design cues … daily! YOU ARE A DESIGNER!

256 Graceful language!

257 Susan Sargent Designs: PLEASE COMPLAIN! Thanks for your order! We dearly want everything to go p-e-r-f-e-c-t-l-y! If the order was late. Or wrong. Or if any of the goods are damaged in the slightest. Or if youre just having a lousy day and want to unload on someone … Call our Customer Care Hotline!

258 Beauty Contest! 1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim form. 2. Rate it on a 1 to 10 scale (1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity. 3. Repeat … every 15 days.


260 No Clutter! developed an increasingly common problem. In the midst of adding material, its design went bad. CNNSI became so packed with links, new sections and graphics that it actually became hard to find something as basic as the score of last nights ballgame. Then it got worse. The team tried to make new graphic elements eye-catching enough to stand out from the sites clutter. But the surfers ignored them, thinking they were ads. Business Week [9-99]

261 Huge Opportunities [ That Damn Few Are Pursuing! ] Women! The rapidly aging population! Design!

262 Context: No to inevitable commoditization S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: Its the Experience! Bottom Line: Glorious Age of the BRAND!

263 Brand Outside Strategy 5 : Its the Experience!

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

265 Whats the plot? Freeman Thomas, designer

266 The [Starbucks] Fix Is on … We have identified a third place. And I really believe that sets us apart. The third place is that place thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager

267 Safe, On Time and … We defined personality as a market niche. We seek to amuse, to surprise, to entertain. Herb Kelleher, Main Man, LUV Airlines

268 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

269 Mantra: Any good can be ing -ed the driv ing experience the pump ing experience the sitt ing experience the read ing experience the wash ing experience the cook ing experience Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & Every Business a Stage

270 Cars are not simply to get you from place to place. They ought to be entertainment. We are sort of in the entertainment business. J Mays, Ford

271 This is the end of the pure product era. For instance, car makers are beginning to understand that the car is a platform for delivering services that drive the customer experience. Carly Fiorina, Comdex 99

272 [Experienc ing : #1 Oxymoron: Respect … from an Airline! I can cope with delays. I can not cope with lies … especially Sins of Omission. IT IS DISRESPECTFUL TO ME AS A HUMAN BEING!!]

273 Marketing Aesthetics managing aesthetics experiences … aesthetics strategy … marketing of sensory experiences that contribute to the organizations or brands identity … mapping strategic vision to sensory stimuli Source: Marketing Aesthetics, Bernd Schmitt & Alexander Simonson

274 Look + Feel + Taste + Touch + Sound + Smell + Texture + Color + Typeface + Etc. = EXPERIENCE* * Bernd Schmitt & Alexander Simonson, Marketing Aesthetics

275 Context: No to inevitable commoditization S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: Its the Experience! Bottom Line: Glorious Age of the BRAND!

276 Brand Outside BRAND POWER!

277 Brand? Distinction Excellence Emotional Signature Trustworthiness Consistency Shorthand

278 Brand It! Now, More Than Ever! The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand. Gillian Law and Nick Grant, Management [New Zealand]

279 No Room for Brands? Nike Saturn CNN America Online Charles Schwab Starbucks The Gap Intel Etc.

280 Brand = Trust! Most buyers do not have a clue whether anybody else makes a better microprocessor, but Intel Inside has become a trust mark - a trademark that consumers put their faith in. The Economist

281 Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, Gang, if they can do it, we can do it. Barry Gibbons

282 Salt is salt is salt. Right? Not when it comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf. Tom Asaker, Humanfactor Marketing

283 Calling the Corporate Shrink! Organizational Psychotherapy/ WHO WE ARE!

284 Scott Bedbury/ Nike, Starbucks A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. Its an emotional connecting point that transcends the product. A Great Brand is a story thats never completely told. A brand is a metaphorical story thats evolving all the time. This connects with something very deep - a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.

285 Consumers dont simply buy products, they buy attitudes as well. When confronted with proliferation and diversity, choices become increasingly informed by belief. [Consumers] want to know who is behind the products that they buy. They want to know the company. They want to know what you think. Jesper Kunde, Corporate Religion

286 Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the companys attitudes and values becomes the decisive parameter for success. It demands that you find out who you are as a company. Jesper Kunde, Corporate Religion

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

288 [Dare to be different. Make people notice. The world is brimming with new competitors and look-alike products. How do you stand out? James Daly, Editor, Business 2.0]

289 Brand = Special = Passion = Connection = Caring* * (Way) beyond market research

290 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

291 In the funky village, real competition no longer revolves around marketshare. We are competing for attention – mindshare and heartshare. Kjell Nordstrom and Jonas Ridderstrale, Funky Business

292 The Ten Rules of Radical Marketing CEO must own the marketing function! Hyper-lean Mktg. Dept. (No filters!) CEO hangs out with customers! Love + Respect your customers! Just Say No … to market research! Hire only passionate missionaries! Create a Community of users-customers! Emphasize one-to-one marketing tools! Celebrate craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

293 P.S.: All this applies to the Finance Department* *Now: Finance Inc.

294 T.T.D. #1: How can I know what I think until I see what I say* Exercise : Write copy for a bookmark! (Etc.) *Graham Wallas, The Art of Thought

295 Brand Leadership Lead Out Loud!

296 Live the Brand!

297 ENTHUSIASM RULES!* I am a dispenser of enthusiasm. Ben Zander *TP on Bob Nardelli/GE Power Systems

298 Astonish me! S.D. Build something great! H.Y. Immortal! D.O.

299 Leadership is a performance. You have to be conscious of your behavior, because everybody else is. Carly Fiorina

300 If you want to be persuasive, you have to generate a high level of energy. Its energy that makes you visible, that gives you presence. I call it performance energy, and its the basis of dynamic leadership. There is nothing artificial about it. Performance energy is an authentic part of who you are. You just have to access it. Martha Burgess, Theater Techniques for Business People

301 Ann R.s Gospel –Show up! –Know your message! –Put yourself at risk !


303 It was much later that I realized Dads secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say. Sara Lawrence-Lightfoot, Respect

304 If you ask me what I have come to do in this world, I who am an artist, I will reply, I am here to live my life out loud. Emile Zola

305 Id rather regret the things I have done than the things I have not. Lucille Ball

306 If things seem under control, youre just not going fast enough. Mario Andretti



Similar presentations

Ads by Google