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Tom Peters Seminar2001 We Are in a Brawl with No Rules! Pittsburgh/09.20.2001.

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1 Tom Peters Seminar2001 We Are in a Brawl with No Rules! Pittsburgh/09.20.2001

2 More at … tompeters.com Slides from this seminar; Master Presentation, for in-depth; annotated Special Presentations [Women Rule!, Design!, etc.]. Cool Friends (referenced in seminar). Discussions re this stuff. Calendar of events. Lavender text in this file is a link.

3 prior 900 years 1900s: 1 st 20 years > 1800s 2000: 10 years for paradigm shift 21 st century: 1000X tech change than 20 th century (the Singularity, a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history) Ray Kurzweil, talk april2001

4 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 (Also see Kurzweils The Age of the Spiritual Machine.)

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

6 We are in a brawl with no rules. Paul Allaire

7 S.A.V.

8 The Kotler Doctrine: 1965-1980: R.A.F. (Ready.Aim.Fire.) 1980-1995: R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!)

9 Most of our predictions are based on very linear thinking. Thats why they will most likely be wrong. Vinod Khosla, in GIGATRENDS, Wired 04.01

10 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

11 BMcC: (1) Hierarchy vs. Network organization. (2) NWO = Doctrine as center of gravity/source of motivation; distributed support & decision- making;largely self-organizing; outside the military sphere.

12 The New War Best defense: CELL PHONES!

13 Our military structure today is essentially one developed and designed by Napoleon. Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

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

15 Structure Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

16 TOPICS. BRAND INSIDE. Forces at Work II: The Destruction Imperative. Brand Org: Lean, Linked, Internet-driven, Virtual. Brand Work: The Professional Service Firm Model. The Heart of the V.A. Revolution: PSF Unbound. Brand You: Distinct … or Extinct. Redefining the Work Itself: The WOW Project. Brand Action: Getting Started (When You Are Powerless). Brand Talent: The Great War for Talent. Brand Talent+: The Education Fiasco. Summary: The High Standard Deviation Enterprise.

17 TOPICS. BRAND OUTSIDE. Forces at Work II: The Sameness Trap. Strategy 1A: Use E- commerce to Re-invent Everything. Strategy 1B: Healthcare et al.: Embracing an e-Led Age of Self-determination. Strategy 2A: Women Rule. Strategy 2B: Welcome to Old World. Strategy 2C: Welcome to Green World. Strategy 3A: Design Matters. Strategy 3B: Its the Experience. Strategy 4: Brand Power.

18 TOPICS. BRAND LEADERSHIP. Leading in Totally Screwed-up Times.

19 Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

20 Forces @ Work I The Destruction Imperative!

21 The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically. Peter Drucker, Business 2.0 (08.00)

22 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

23 The [New] G e Way DYB.com

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

25 Built to Last v. Built to Flip The problem with Built to Last is that its a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility. Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish. Fast Company (03-00)

26 Brand Inside Brand Org: Lean, Linked, Internet-driven, Virtual

27 White Collar Revolution!

28 108 X 5 vs. 8 X 1 = 540 vs. 8 (-98.5%)

29 The Pincer 5 Destructive entrepreneurs/ Global Competition White Collar Robots THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!

30 A bureaucrat is an expensive microchip. Dan Sullivan, consultant and executive coach

31 Automation+ 75% of what we do: 40 expert decision rules!

32 IBMs Project eLiza!

33 The Pincer 5 Destructive entrepreneurs/ Global Competition White Collar Robots THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!

34 Assetless Company John Bryan, CEO, on selling all Sara Lees manufacturing

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

36 Better Red than Dead?/ Better Dead than Red? We will see more and more outsourcing of discovery processes. Craig Venter

37 Better Red than Dead?/ Better Dead than Red? If we completely outsourced all of our genetic analysis, wed be held hostage by outside people. Brian Spear, Director of Pharmacogenomics, Abbott

38 Brand Inside Brand Work: The Professional Service Firm Model

39 So what will be the Basic Building Block of the New Org?

40 Every job done in W.C.W. is also done outside …for profit!

41 Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.

42 P.S.F.: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot Talent (see below) Adventurous culture Proprietary Point of View (Methodology) W.W.P.F. (100%)/Outside Clients (25%++) When: Now!

43 BMWs Designworks/USA: >50% from outside work

44 eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21 st Century HR Department, John Sullivan, IHRIM

45 (1) 100% goes on the Web. (2) Non-awesome is outsourced. (3) Remaining Centers of Excellence are leveraged to the hilt!

46 Brand Inside The Heart of the Value Creation Revolution: PSF Unbound!

47 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business!

48 [These days, building the best server isnt enough. Thats the price of entry. Ann Livermore, Hewlett-Packard]

49 HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

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

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

52 GEs New Six Sigma Approach Old view: Out of service 9 days. 4 days are transport, which is client responsibility. New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days = Clients World. Source: Steve Kerr, VP, GE

53 The primary strategic mission for [CEOJeffrey] Immelt is to hasten GEs transformation from a low-margin manufacturer to a more lucrative services company that sells solutions as much as stuff. Newsweek/09.10.2001 (Welch raised share of services revenue from 15% to 70%)

54 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)

55 Springs Collections. Flexible sourcing. Packaging. Merchandising. Promotion. Design. Systems & Site mgt. = Turnkey.

56 Brand Inside Brand You: Distinct … or Extinct

57 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

58 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

59 Sams Secret #1!

60 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

61 You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, Where do you see yourself in 5 years? youll ask, If I invest my mental assets with you for 5 years, how much will they appreciate? How much will my portfolio of career options grow? Stan Davis & Christopher Meyer, futureWEALTH

62 [My ancestors were printers in Amsterdam from 1510 or so until 1750 and during that entire time they didnt have to learn anything new. Peter Drucker, Business 2.0 (08.22.00)]

63 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)

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

65 Brand Inside Redefining the Work Itself: The WOW Project

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

67 Learn not to be careful. Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa)

68 Brand Inside Brand Action: Getting Started … a Personal Perspective

69 The following slide begins the Boss-Free Implementation of Stuff That Matters Section. The slides in this section are heavily annotated. Use Normal or Notes Page View to access the notes.

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

71 Worlds Biggest Waste … Selling Up

72 THE IDEA: Model F4 F ind a F ellow F reak F araway

73 Heart of the Matter F2F!/K2K!/ 1@T/R.F!A.* *Freak to Freak/Kook to Kook/ One at a Time/ Ready.Fire!Aim.

74 And … K2KK* S2SS** *Kook to Kooky Kustomer **Skunk to Scintillating Supplier

75 THE NUGGET Do Something. Do Anything. Get Going. Now.

76 Opportunity ALWAYS Knocks VFCJ* Strategy *Volunteer For Crappy Jobs

77 Is It … The Oh-Hell-I-Wish-It-Were- Over Memorial Day picnic or The First Annual S eriously K ewl C elebration of Our Incredible Staff

78 Is It … Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs? Or … A stealth opportunity to address the War for Talent via … a thoroughgoing review of how safety and environmental issues contribute to making this a Great Place to Work?

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

80 BOTTOM LINE The Enemy!

81 Joe J. Jones 1942 – 2001 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDNT LET HIM!

82 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

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

84 It is a glory to have broken such infamous orders. John Adams, to Congress, on ignoring his charter and negotiating successfully with the Brits for Independence, against the will of the French

85 Sales2001

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

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

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

89 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 in great technology companies can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple!

90 Brand Inside Brand Talent: The Great War for Talent

91 When land was the scarce resource, nations battled over it. The same is happening now for talented people. Stan Davis & Christopher Meyer, futureWEALTH

92 The Talent Ten

93 1. Obsession P.O.T.* = All Consuming *Pursuit of Talent

94 Model 24/7: Sports Franchise GM

95 2. Greatness Only The Best!

96 From 1, 2 or youre out [JW] to …Best Talent in each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent (05.17.00)

97 3. Performance Up or out!

98 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 (05.17.00)

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

100 4. Pay Fork Over!

101 Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers. Ed Michaels, War for Talent (05.17.00)

102 What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more.

103 5. Youth Grovel Before the Young!

104 Why focus on these late teens and twenty- somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young. The Economist [12/2000]

105 6. Diversity Mess Rules!

106 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

107 7. Women Born to Lead!

108 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

109 The New Economy … Shout goodbye to command and control! Shout goodbye to hierarchy! Shout goodbye to knowing ones place!

110 Womens Stuff = New Economy Match Improv skills Relationship-centric Less rank consciousness Self determined Trust sensitive Intuitive Natural empowerment freaks [less threatened by strong people] Intrinsic [motivation] > Extrinsic

111 Womens Strengths: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment > top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value interpersonal & technical skills, group & individual contributions equally; readily accept ambiguity; honor intuition as well as pure rationality; inherently flexible; appreciate cultural diversity Source: Judy B. Rosener, Americas Competitive SecretJudy B. Rosener

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

113 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

114 Its Girls, Stupid! 1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in high-level math and science courses More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbers Boys do rule: crime, alcohol, drugs, failure to do homework (4:1) Source: The Atlantic Monthly (May2000)

115 Boys are trained in a way that will make them irrelevant. Phil Slater

116 Okay, you think Ive gone tooooo far. How about this: DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?

117 63 of 2,500 top earners in F500 8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med faculty; 7% deans Source: Susan Estrich, Sex and Power

118 8. Weird The Cracked Ones Let in the Light!

119 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

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

121 Would Craig Venter (Luciano Benetton) come to work for us?

122 Axiom: Never hire anyone without an aberration in their background!

123 I would like to think we could attract students with green hair. We will take pink and blue and orange hair, too. Shirley Tilghman, Princeton

124 9. Opportunity Make It an Adventure!

125 H.R. to H.E.D. ??? H uman E nablement D epartment

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

127 10. Leading Genius We are all unique!

128 Beware Lurking HR Types … One size NEVER fits all. One size fits one. Period.

129 48 Players = 48 Projects = 48 different success measures

130 Obsession Greatness Performance Pay Youth Diversity Women Weird Opportunity Leading Genius

131 MantraM3 Talent = Brand

132 Whats your companys … EVP? Employee Value Proposition, per Ed Michaels et al., The War for Talent

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

134 HR Folks: YOU – not marketing - OWN THE BRAND PROMISE! (If you wish.)

135 Brand Inside Brand Talent+: The Education Fiasco

136 Losing the War to Bismarck

137 My wife and I went to a [kindergarten] parent- teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any childlet alone our childreceive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor skills. Jordan Ayan, AHA! Jordan Ayan

138 How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a closet artist. The point is: Every school I visited was was participating in the suppression of creative genius. Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fools Guide to Surviving with Grace

139 Our education system is a second-rate, factory-style organization, pumping out obsolete information in obsolete ways. [Schools] are simply not connected to the future of the kids theyre responsible for. Alvin Toffler, Business 2.0 (09.00)

140 J. D. Rockefellers General Education Board (1906): In our dreams people yield themselves with perfect docility to our molding hands. … The task is simple. We will organize children and teach them in a perfect way the things their fathers and mothers are doing in an imperfect way. John Taylor Gatto, A Different Kind of Teacher

141 An Unnatural Way to Learn

142 Every time I pass a jailhouse or school, I feel sorry for the people inside. Jimmy Breslin, 07.11.2001, on summer school in NYC [If they havent learned in the winter, what are they going to remember from days when they should be swimming?]

143 Schools Kafka-like rituals: enforce sensory deprivation on classes of children held in featureless rooms … sort children into rigid categories by the use of fantastic measures such as age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving them of private time and space … John Taylor Gatto, A Different Kind of Teacher

144 Kafka-like rituals (cont.): assign children numbers constantly, feigning the ability to discriminate qualities quantitatively … insist that every moment of time be filled with low- level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their active learning time to acquire. John Taylor Gatto, A Different Kind of Teacher

145 Doing Stuff that Matters!

146 During the first years of life, youngsters all over the world master a breathtaking array of competences with little formal tutelage. Howard Gardner, The Unschooled Mind

147 Education, at best, is ecstatic. At its best, its most unfettered, the moment of learning is a moment of delight. This essential and obvious truth is demonstrated for us every day by the baby and the preschool child. … When joy is absent, the effectiveness of the learning process falls and falls until the human being is operating hesitantly, grudgingly, fearfully. George Leonard, Education and Ecstasy [1968]

148 The Learners Manifesto The brain is always learning. Learning does not require coercion. Learning must be meaningful. Learning is incidental. Learning is collaborative. The consequences of worthwhile learning are obvious. Learning always involves feelings. Learning must be free of risk. Frank Smith, Insult to Intelligence

149 U.C. Ed Dean Walter Karp: From the first grade to the twelfth, from one coast to the other, instruction in Americas classrooms is almost entirely dogmatic. Answers are right and answers are wrong, but mostly answers are short. Frank Smith, Insult to Intelligence

150 Most important 3 letters: Why?

151 Toms Edu3M Manifesto* *Manifesto for Education in the 3 rd Millennium

152 Education3M Learning is a normal state. Children are learnavores. Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.] We learn at different rates. We learn in different ways. Boys and girls learn [very] differently. In a class of 25, there are 25 different trajectories. Learning in 40-minutes blocks is bullshit. Learning for tests is utterly insane. There are numerous rigorous evaluation schemes, of which testing is but oneand abnormal, by real world standards.

153 Education3M We learn most/fastest/most completely when we are passionate about what we are learning and it matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/ Learning by Internship. Classrooms are abnormal places. We need changes of pace. [Japanese recesses between each class.] International test scores are not correlated with hours-per-year in class. Big classes are slightly problematic. Big schools suck. Period.

154 Education3M All thisthe right stufffits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.] U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning. Cutting art-music budgets is truly dumb. Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.] Teachers need enough space-time-flexibility to get to know kids as individuals. Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

155 Education3M Our toughest learning achievement mastering our native languagedoes not require schools, or even competent parents. [It does require a desperate need-to-know.] Great teachers are great learners, not imparters- of-knowledge. Great teachers ask great questionsthat launch kids on lifelong quests. The world is not about right & wrong answers; it is about the pursuit of increasingly sophisticated questionsjust ask a ski instructor or neurosurgeon.

156 Education3M Most schools spend most of their time setting up contexts in which kids learn not to like particular subjects. [Evidence shows that such anti- learning sticks!] Vigorous exploration is normal … until you are incarcerated in a school. Bite size education-learning is neither education nor learning. Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in the hyper-structured classroom.

157 Education3M The school reform movement is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigorat exactly the wrong time. There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps. Alas, the teaching profession does not ordinarily attract cool dudes & dudettes. Schools of education should by and large have their charters revoked.

158 Education3M Education must develop in youth the capabilities for engaging in intense concentrated involvement in an activity. [James Coleman, 1974.] [Hint: It doesnt.] [Hint: Understatement.] Stability is dead; education must therefore educate for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static body of facts.

159 Brand Inside Reprise: THINK WEIRD: The High Standard Deviation Enterprise

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

161 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

162 I made a note. Im going after [PIONEER CO.], not the two establishment firms who were formerly at the top of my 2001 target list. We need a jolt. Things are going too well. Sales Exec, high-tech superstar

163 Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.]

164 Tomorrows Organizations: Itinerant Potential Machines

165 TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if youre stretching. Want to make their bones in the revolution. Love the new technologies. Well rewarded. Dont plan to be around 10 years from now.

166 TALENT POOL PLUS. Seek out and work with worlds best as needed (its often needed). We aim to change the world, and we need gifted colleagueswho well may not be on our payroll.

167 BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont knowand then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENTbut dont expect the co. to be around forever. Will scrap pet projects, and change course 180 degreesand take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME HAS NOT-YET- COME. GREAT REGRETS AT TIME & $$$ WASTED ON ME TOO PRODUCTS AND PROJECTS.

168 BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) Visionary leaders matched by leaders with shrewd business sense: HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA? Appreciate market creation as much as or more than market share growth. ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAYS VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Skilling. Case. Etc.)

169 ALLIANCE MANIACS. Dont assume that the best resides within. WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE SUPPLY CHAIN TO THE OTHER. Including vendors and consultants and … especially … PIONEERING CUSTOMERSwho will pull us into the future.

170 TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all outsiders, on the Internet … at Internet speed. Reluctant to work with those who dont share this (radical) vision.

171 POTENTIAL MACHINES-ORGANISMS. Dont know whats coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own way of doing things.

172 Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

173 Forces @ Work II The Sameness Trap

174 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

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

176 The surplus society has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality. Kjell Nordstrom and Jonas Ridderstrale, Funky Business

177 Companies have defined so much best practice that they are now more or less identical. Jesper Kunde, A Unique Moment

178 10X/10X

179 Brand Outside Strategy 1A : Use E-Commerce to Re-invent Everything!

180 Dells OptiPlex Facility Big Job: 6 to 8 hours. (20,000 per day) Parts Inventory: 2 hours, 100 square feet. (Overall, 5 days vs. 50 to 90 days; target is 2.5 days)

181 Cisco! 90% of $20B (=$50M/day) Annual savings in service and support from customer self-management: $550M

182 Secret Cisco: Community! C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B free consulting) (45,000 customer problems a week solved via customer collaboration)

183 Webcor. Construction. Web site for each project. Instant info on status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage. Source: Business Week (09.00)

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

185 Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.

186 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

187 Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast. Lewis Carroll

188 Inet … … allows you to dream dreams you could never have dreamed before!

189 Brand Outside Strategy 1B : Healthcare et al.: Embracing an e-Led Age of Self-Determination

190 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 Nordstrom and Jonas Ridderstrale, Funky Business

191 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

192 Impact #1(?): Healthcare

193 HealthCare2001 Consumerism X Demographics X IS/Internet X Info Consolidators X Genetics & Devices = YIKES!

194 1. Consumerism (Patient- centric Healthcare)

195 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

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

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

198 2. Demographics : The BOOMERS Reach 55!

199 Boomer World From jogging to plastic surgery, from vegetarian diets to Viagra, they are fighting to preserve their youth and defy the effects of gravity. M.W.C. Howgill, Healthcare Consumerism, the Information Revolution and Branding

200 Message Boomer: (1) There are l-o-t-s of us. (2) We have the $$$$$$. (3) Were/ Im in charge! (4) Well take no guff from from anyone. (5) We know the emperor has no clothes.

201 3. The IS/Web REVOLUTION

202 Were in the Internet age, and the average patient cant email their doctor. Donald Berwick, Harvard Med School

203 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

204 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

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

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

207 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

208 4. Information Consolidators: The Network Maestros

209 WebMD (or heirs & assigns)

210 Virtual health care webs force providers to focus on their areas of excellence and to invest in areas where they can generate a sustainable competitive advantage. Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide

211 5. Genetics & Devices

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

213 Recognizing that a single misspelled gene means the difference between being poisoned and being cured was the first victory for the new science of pharmacogenetics. Newsweek (06.25.01)

214 There is no question in my mind that the future of heart surgery is in robotics. Dr. Robert Michler, OSU Med Center, upon the FDAs approval of robotic partial- bypass surgery

215 Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the operating table. That day may come sooner than you think. Newsweek (06.25.01)

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

217 Brand Outside Strategy 2A : Women Rule!

218 ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80%

219 ???? 80%

220 Riding Lawnmowers

221 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

222 $4.8T > Japan 9M/27.5M/$3.6T > Germany

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

224 1874?

225 1874 … Jock Strap 1977 … Jogbra 1977... 25K 1996 … 42 M

226 Yeow! 1970 … 1% 2002 … 50%

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

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

229 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.

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

231 Read This: Barbara & Allan Peases Why Men Dont Listen & Women Cant Read Maps

232 It is obvious to a women when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in he face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

233 Resting State: 30%, 90%: A woman knows her childrens friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

234 As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

235 Female hearing advantage contributes significantly to what is called womens intuition and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldnt despair. They are excellent at imitating animal sounds. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

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

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

238 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

239 Women dont buy brands. They join them. Faith Popcorn, EVEolution Faith Popcorn

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

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

242 Not!! Year of the Woman

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

244 Honey, are you sure you have the kind of money it takes to be looking at a car like this?

245 27 March 2000: email to TP from Shelley Rae Norbeck I make 1/3 rd more money than my husband does. I have as much financial pull in the relationship as he does. Id say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!

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

247 Ad from Furniture /Today (04.01): MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that Way Presenting Experts: M = 16 ; F = ?? (272?)

248 0

249 If we are single, they say we couldnt catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldnt keep him. If we are widowed, they say we killed him. Kathleen Brown, on the joys of female political candidacy

250 Brand Outside Strategy 2B : Welcome to Old World!

251 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

252 Subject: Marketers & Stupidity Its 18-44, stupid!

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

254 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

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

256 [ Member Growth: 1987 – 1997 18 – 34: 26% 35 – 49: 63% 50+: 118% Source: IHRSA]

257 Aging/Elderly $$$$$$$$$$$$ Im in charge!

258 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury $610B healthcare spending/74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old

259 Brand Outside Strategy 2C : Welcome to Green World!

260 And #3: GREEN ?????: 50% to 36%: Protect Environment > Economic Growth. 58% to 34%: Protect Plants & Animals > Preserve Private Property Rights.

261 E.g.: Genetically Altered Food Would eat: M, 71%; F, 50% Give to children: M, 59%; F, 37% Pay more for non-altered: M, 35%; F, 47% Source: www.pulse.org & USA Today

262 No : Target Marketing Yes : Target Innovation & Target Delivery Systems

263 Brand Outside Strategy 3A : Design Matters!

264 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

265 We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation. Steve Jobs

266 Women Beat Men at Art of Investing Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are in and out of stocks more often; women choose carefully and hold on for the long term)

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

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

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

270 Design Transforms even the [Biggest] Corporations! TARGET … the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)

271 Design is … WHAT & WHY I LOVE. LOVE.

272 I LOVE my ZYLISS Garlic Peeler!

273 Design is … WHY I GET MAD. MAD.

274 Wanted: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!

275 Design is never neutral.

276 Hypothesis: DESIGN is the principal difference between love and hate!

277 THE BASE CASE: I am a design fanatic. Personally, though not artistic, Im a cool-stuff guy. I love what I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has become a professional obsession. I – SIMPLY – BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of whether a product-service-experience stands out … or doesnt. Furthermore, its one of those things … that damn few companies put – consistently – on the front burner.

278 Brand Outside Strategy 3B : Its the Experience!

279 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

280 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

281 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

282 The Experience Ladder Experiences Services Goods Raw Materials

283 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

284 Message: Experience is the Last 80% Experience applies to all work!

285 Brand Outside Strategy 4 : BRAND POWER!

286 WHO ARE YOU [these days] ? TP to Client

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

288 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

289 Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of physical products to choose between. Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.] Jesper Kunde

290 Brand Promise Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which we are UNIQUE … to our Clients. (3) Who are THEY (competitors) ? (ID, 25 words.) (4) List 3 distinct us/them differences. (5) Try results on your teammates. (6) Try em on a friendly Client. (7) Big Enchilada: Try em on a skeptical Client!

291 WHO ARE WE?

292 WHATS OUR STORY?

293 WHY DOES IT MATTER TO THE CLIENT?

294 Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

295 The Leadership50 Leading in Totally Screwed Up Times

296 1. Leadership Is a … Mutual Discovery Process.

297 I dont know.

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

299 2. Great Leaders on Snorting Steeds Are Important – but Great Managers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul.

300 2A. Just One: Great Leading = Great Mentoring.

301 Goal of the Year No. 1*: Find- Develop-Mentor ONE Extraordinary Person. *CEO, large financial advisory firm, April 2001

302 3. But Then Again, There Are Times When This Cult of Personality (Type II Leadership) Stuff Actually Works!

303 4. Find the Businesspeople! (Type III Leadership)

304 I.P.M. (Inspired Profit Maniac)

305 4A. The Golden Leadership Triangle.

306 The Golden Leadership Triangle: (1) Creator- Inventor-Visionary … (2) Talent Fanatic … (3) Inspired Profit Mechanic.

307 Project Team Golden Triangle (1) Champion-Maniac. (2) Implementer-Pol. (3) Schedule & Budgets Fanatic.

308 5. Leadership Mantra #1: IT ALL DEPENDS!

309 Renaissance Men are … a snare, a myth, a delusion!

310 6. The Leader Is Rarely/Never the Best Performer.

311 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0. Walter Alston1AB. Tony LaRussa132 games, 6 seasons. Tommy LasordaP,26 games. Sparky Anderson1 season.

312 7. Leaders LOVE the MESS!

313 7A. Leaders Groove on AMBIGUITY!

314 Most of our predictions are based on very linear thinking. Thats why they will most likely be wrong. Vinod Khosla, in GIGATRENDS, Wired 04.01

315 8. Leaders DO!

316 The Kotler Doctrine: 1965-1980: R.A.F. (Ready.Aim.Fire.) 1980-1995: R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!)

317 8A. Leaders Re -do.

318 Sony Electronics has a well- earned reputation for persistence. The companys first entry into a new field often isnt very good. But, as it has shown in laptops, Sony will keep trying until it gets it right. Business Week (5/01)

319 8B. Leaders Are PLAYFUL.

320 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 Michael Schrage

321 Axiom: Never trust a boss with no toys in his/her office!

322 9. Leaders DELIVER!

323 Leaders dont want to win. Leaders need to win. #49

324 10. Leaders FOCUS!

325 To Dont List

326 11. Leaders Win Through LOGISTICS!

327 The Gus Imperative!

328 12. Leaders Know:POWERLESS IS COOL!

329 Heart of the Matter F2F!/K2K!/ 1@T/R.F.A.* *Freak to Freak/Kook to Kook/ One at a Time/ Ready.Fire!Aim.

330 12A. Leaders Seed & Pursue & Recognize (Weird) Demos.

331 L.B.I.W.D. (Leading By Inducing Weird Demos)

332 The Flypaper/Epidemic Strategy: Trolling for would-be Revolutionary(ies). Age & rank & size of org do not matter/passion rules (Gaps 27-yr-old; Rajat; OSHA Maine; Anthem NH). (Hmmmm. Maybe size & rank do matter??) (I wont help you get promoted. I will help you start a revolution/epidemic.) Help the infected one(s) become carriers; study epidemiology. MBSA.

333 12B. Get Em Workin on Projects A.S.A.P.

334 Quests !

335 13. Leaders Understand the Ultimate Power of RELATIONSHIPS.

336 13A. Leaders Say Thank You.

337 The deepest human need is the need to be appreciated. William James

338 The two most powerful things I know in existence: a kind word and a thoughtful gesture. Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, Its Not Business, Its Personal]

339 14. Leaders Wire the Joint!

340 Winners wire. Losers are slaves to rank.

341 15. Leadership Is Improv!

342 16. Leaders Trust in TRUST !

343 Credibility !

344 16A. Leaders Dont Scapegoat.

345 17. Leaders Are Natural EMPOWERMENT FREAKS!

346 AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts on almost every measure Title, Special Report, Business Week, 11.20.00

347 18. Leaders FORGET!/ Leaders DESTROY!

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

349 19. BUT … Leaders Have to Deliver, So They Worry About Throwing the Baby Out with the Bathwater. [Lifes a Bitch…]

350 Damned If You Do, Damned If You Dont, Just Plain Damned Subtitle in the chapter, Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity, Liberation Management (1992)

351 20. Leaders … HONOR THE USURPERS … in Their Organizations!

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

353 21. Leaders HANG OUT WITH FREAKS!

354 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

355 22. Leaders Make [Lotsa] Mistakes – and MAKE NO BONES ABOUT IT!

356 Fail faster. Succeed sooner. David Kelley/IDEO David Kelley

357 22A. Leaders Make BIG MISTAKES!

358 22B. Leaders Honor Mistakes & Create Blame-free Cultures.

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

360 23. Leaders Set DESIGN SPECS.

361 Richards rules! (Innovative, high quality, affordable, cheeky)

362 24. Leaders Know When to CHALLENGE (BURN) Design Specs!

363 The chump-to- champ-to-chump cycle used to be three generations. Now its about five years. Bill McGowan

364 24A. Leaders Love to CREATE NEW MARKETS. Leaders Know that THERES MORE TO LIFE THAN LINE EXTENSIONS.

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

366 25. Leaders Dont Create Followers: THEY CREATE LEADERS!

367 Brand You, Big Time! I AM AN ARMY OF ONE

368 26. When It Comes to TALENT … Leaders Always Swing fore the Fences!

369 From 1, 2 or youre out [JW] to …Best Talent in each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent (05.17.00)Ed Michaels

370 27. Leaders Win Followers Over

371 WHAT AN IDIOT: Instead of employees being in the drivers seat, now were in the drivers seat.

372 PJ: Coaching is winning players over.

373 28. Leaders have MENTORS.

374 29. Leaders LOVE RAINBOWS – for Pragmatic Reasons.

375 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

376 29A. Leaders Pursue Poets!

377 Expose yourself to the best things humans have done, and then try to bring those things into what youre doing. Steve Jobs

378 30. Leaders Manage Their EVP.

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

380 31. Leaders Know Its My Fault.

381 32. Leaders LOVE the New Technology!

382 Believe in the Internet … MORE THAN EVER. Andy Grove, Cover quote, Wired (June 200 1 )

383 33. Leaders Out Their PASSION!

384 A leader is a dealer in hope. Napoleon

385 G.H.: Create a cause, not a business.

386 34. Leaders Know: ENERGY BEGETS ENERGY!

387 BZ: I am a … DISPENSER OF ENTHUSIASM!

388 35. Leaders Know Its ALL SALES ALL THE TIME.

389 Sales2001

390 36. Leaders Give … RESPECT!

391 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

392 37. Leaders … SHOW UP!

393 Rudy!

394 38. Leadership Is a Performance. BELIEVE IT.

395 You must be the change you wish to see in the world. --M.G.

396 39. Leaders Have a GREAT STORY!

397 A key – perhaps the key – to leadership is the effective communication of a story. Howard Gardner Leading Minds: An Anatomy of Leadership

398 40. Leaders Create BUZZ!

399 41. Leaders Pursue DRAMATIC DIFFERENCE!

400 1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: intent to purchase – 100%; unique – 0% to 5%) Source: Jump Start Your Busioness Brain, Doug Hall Doug Hall

401 42. Leaders Focus on the SOFT STUFF!

402 Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TPs final words: CYNICISM SUCKS.]

403 43. Leaders KNOW They Can Make a Difference!

404 Hackneyed but none the less true: LEADERS SEE CUPS AS HALF FULL.

405 44. Leaders LISTEN!

406 See Stephen!

407 45. Leaders LOVEPOLITICS.

408 46. Leaders SERVE.

409 Robert Greenleaf: Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness

410 47. Leaders KNOW THEMSELVES.

411 Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (Leaders who are not comfortable with themselves become petty control freaks.)

412 48. Leaders Are Graceful.

413 My favorite word is grace – whether its amazing grace, saving grace, grace under fire, Grace Kelly. How we live contributes to beauty – whether its how we treat other people or the environment. Celeste Cooper, designer

414 49. Leaders ??? :

415 LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES

416 Its only business, not personal … IT ALWAYS IS PERSONAL.

417 Hire smart – go bonkers – have grace – make mistakes – love technology – start all over again.

418 Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.

419 50. Leaders Know WHEN TO LEAVE!


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