1. Tom Peters Seminar2002 We Are in a Brawl with No Rules Delhi/29October2002

2. I. NEW BUSINESS. NEW CONTEXT.

3. 1.All Bets Are Off.

4. “We are in a brawl with no rules.” Paul Allaire

5. “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)

6. 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

7. 2. The Destruction Imperative.

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

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

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

11. “Conglomerates don’t work” —James Surowiecki, The New Yorker (07.01,2002)

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

13. 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

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

15. C.E.O. to C.D.O.

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

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

18. “Organize” for … performance & customer satisfaction. “Disorganize” for … renewal & innovation.

19. “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

20. Japan’s Science Gap * Rice farming culture: uniqueness suppressed. Gov’t control of R & D. Promotion based on seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. “bold leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe: “What we need to create is job insecurity rather than security to make people compete more.” *Hideki Shirakawa, Nobel laureate, chemistry

21. December 2000: Swiss House for Advanced Research & Education. Cambridge, Massachusetts. Xavier Comtesse: “You never hear a Swiss say, ‘I want to change the world.’ We need to take more risks.”

22. No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

23. II. NEW BUSINESS. NEW TECH.

24. 3. The White Collar Revolution & the Death of Bureaucracy.

25. 108 X 5 vs. 8 X 1 = 540 vs. 8 (-98.5%)

26. E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW (01.28.02)

27. “A bureaucrat is an expensive microchip.” Dan Sullivan, consultant and executive coach

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

29. “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

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

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

32. 100 square feet

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

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

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

36. “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

37. “Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21 st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. “In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002

38. Case: CRM

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

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

41. 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

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

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

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

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

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

47. “Don’t rebuild. Reimagine.” The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002

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

49. III. NEW BUSINESS. NEW VALUE PROPOSITION.

50. 5. The “PSF Solution”: The Professional Service Firm Model.

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

52. Every job done in W.C.W. is also done “outside” …for profit!

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

54. TP to NAPM: You are the … Rock Stars of the B2B Age!

55. Message: You are Re-invention Evangelists!

56. 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

57. Model PSF …

58. (1) Translate ALL departmental activities into discrete W.W.P.F. “Products.” (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!

59. “Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that. We pay for ourselves, and we actually make money for the company.” —Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)

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

61. Base Case: The Sameness Trap

62. “While everything may be better, it is also increasingly the same.” Paul Goldberger on retail, “The Sameness of Things,” The New York Times

63. “We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina

64. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst

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

66. “Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, Unique Now... or Never

67. The Big Day!

68. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

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

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

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

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

73. Keep In Mind: Customer Satisfaction versus Customer Success

74. E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”

75. “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)

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

77. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst

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

79. Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer Success.”

80. IV. NEW BUSINESS. NEW BRAND.

81. 7. A World of Scintillating/ Awesome/ WOW “Experiences.”

82. “ 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

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

84. 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

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

86. “Lexus sells its cars as containers for our sound systems. It’s marvelous.” —Sidney Harman/ Harman International

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

88. Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion

89. 8. Experiences+: Embracing the “Dream Business.”

90. DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni

91. Common Products “Dream” Products Maxwell House Starbucks BVD Victoria’s Secret Payless Ferragamo Hyundai Ferrari Suzuki Harley Davidson Atlantic City Acapulco New Jersey California Carter Kennedy Conners Pele CNN Millionaire Source: Gian Luigi Longinotti-Buitoni

92. Emotional Design that Interprets Dreams “Zero defects”: Only the starting point. Love at first sight. Design for the five senses. Develop to expand the Main Dream. Design so as to seduce through the peripheral senses. Source: Gian Luigi Longinotti-Buitoni

93. The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz,” the “hype,” the “cult.” Source: Gian Luigi Longinotti-Buitoni

94. Building the Creative Organization Choose a creator: The cultural leader who gives the company an aesthetic point of view. Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion. Prepare vertically: Develop a rigorous understanding of the product and the client. Develop horizontally: Promote curiosity in unrelated disciplines. Lead emotionally: Engender passionate dedication through vision and freedom. Build for the long haul: Creativity requires a lifetime commitment. Source: Gian Luigi Longinotti-Buitoni

95. Constantly Magnify Perceived Value Maximize your value-added by fulfilling the dreams of your clients. Only invest in what is valuable for your client. Don’t let the short-term results weaken the long-term value of your brand. Balance rigorous control of the financial endeavor with the emotional management of your brand. Build a financial structure that allows risk-taking: NO RISKS—NO DREAMS. Establish long-term “price power” in order to avoid the trap of the commodity product. Source: Gian Luigi Longinotti-Buitoni

96. 9. The [Mostly Ignored] “Soul” of “Experiences”: Design Rules!

97. Design’s place in the universe.

98. 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

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

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

101. Bottom Line.

102. Design “is” … WHAT & WHY I LOVE. LOVE.

103. Design “is” … WHY I GET MAD. MAD.

104. Design is never neutral.

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

106. THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the front burner.

107. Message (?????): Men cannot design for women’s needs.

108. “Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female. ” Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

109. 10. Women Roar.

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

111. 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

112. 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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

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

115. Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t Read Maps

116. “It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

117. “Resting” State: 30%, 90%: “A woman knows her children’s 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 Don’t Listen & Women Can’t Read Maps

118. “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 Don’t Listen & Women Can’t Read Maps

119. “Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. They are excellent at imitating animal sounds.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

120. Senses Vision: Men, focused; Women, peripheral. Hearing: Women’s discomfort level I/2 men’s. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women

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

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

123. “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

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

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

126. Not ! “Year of the Woman”

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

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

129. 11. “It” all adds up to … THE BRAND.

130. The Heart of Branding …

131. “WHO ARE WE?”

132. “Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.” Jesper Kunde, Unique Now... or Never

133. “WHAT’S OUR STORY?”

134. “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

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

136. DO THE HOUSEKEEPERS & CLERKS “BUY IT”? [ARE YOU V-E-R-Y SURE?]

137. “EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

138. 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 Source: Jump Start Your Business Brain, Doug Hall

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

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

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

142. “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) Try ’em on a skeptical Client!

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

144. “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

145. VI. NEW BUSINESS. NEW YOU.

146. 12. Re-inventing the Individual: Brand You/ You Inc./ Free Agent Nation (Or Else.)

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

148. “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army

149. In Store: International Equality, Intranational Inequality “The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20 th century.” James Davidson & William Rees-Mogg,The Sovereign Individual

150. 13. Toward Work that Matters: The WOW Project.

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

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

153. 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

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

155. 14. Boss Job One: The Talent Obsession.

156. Brand = Talent.* *Duh.

157. The Talent Ten

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

159. Model 25/8/53 Sports Franchise GM

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

161. 2. Greatness Only The Best!

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

163. 3. Performance Up or out!

164. “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

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

166. 4. Pay Fork Over!

167. “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)

168. 5. Youth Grovel Before the Young!

169. “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]

170. 6. Diversity Mess Rules!

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

172. “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

173. 7. Women Born to Lead!

174. “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

175. Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, America’s Competitive Secret

176. Opportunity! U.S. G.B. E.U. Ja. M.Mgt. 41% 29% 18% 6% T.Mgt. 4% 3% 2% <1% Peak Partic. Age 45 22 27 19 % Coll. Stud. 52% 50% 48% 26% Source: Judy Rosener, America’s Competitive Secret

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

178. 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

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

180. 9. Opportunity Make It an Adventure!

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

182. 10. Leading Genius We are all unique!

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

184. 48 Players = 48 Projects = 48 different success measures.

185. MantraM3 Talent = Brand

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

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

188. The Top 5 “Revelations” Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on people’s dreams – they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent

189. IX. NEW BUSINESS. NEW LEADERSHIP.

190. 15. The Passion Imperative: The Leadership 50

191. The Basic Premise.

192. 1. Leadership Is a … Mutual Discovery Process.

193. “I don’t know.”

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

195. “ Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – P.D.

196. The Leadership Types.

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

198. 25/8/53* (*Damn it!)

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

200. “A leader is a dealer in hope.” Napoleon (+TP’s writing room pics)

201. 4. Find the “Businesspeople”! (Type III Leadership)

202. I.P.M. (Inspired Profit Mechanic)

203. 5. All Organizations Need the Golden Leadership Triangle.

204. The Golden Leadership Triangle: (1) Creator- Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic.

205. 6. Leadership Mantra #1: IT ALL DEPENDS!

206. Renaissance Men are … a snare, a myth, a delusion!

207. 7. The Leader Is Rarely/Never the Best Performer.

208. The Leadership Dance.

209. 8. Leaders … SHOW UP!

210. P.S. … Mark McCormack: 5,000 miles for a 5 min. meeting !

211. 9. Leaders … LOVE the MESS!

212. “If things seem under control, you’re just not going fast enough.” Mario Andretti

213. 10. Leaders DO!

214. 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!)

215. “Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week” Source: New York Times on Meg Whitman/eBay

216. 11. Leaders Re -do.

217. “If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly. They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they’ve gained in other markets to enforce their standard.” Seth Godin, Zooming

218. 12. BUT … Leaders Know When to Wait.

219. Tex Schramm: The “too hard” box!

220. 13. Leaders Are … Optimists.

221. Hackneyed but none the less true: LEADERS SEE CUPS AS “HALF FULL.”

222. 14. Leaders … DELIVER!

223. “It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.” — WSC

224. “When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played—or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Honeywell/AlliedSignal, in Execution

225. 15. BUT … Leaders Are Realists/Leaders Win Through LOGISTICS!

226. 16. Leaders FOCUS!

227. “To Don’t ” List

228. 17. Leaders … Set CLEAR DESIGN SPECS.

229. Danger: S.I.O. (Strategic Initiative Overload)

230. JackWorld/ 1@T : (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3) “Workout” Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK!

231. 18. Leaders … Send V-E-R-Y Clear Signals About Design Specs!

232. Ridin’ with Roger: “What have you done to DRAMATICALLY IMPROVE quality in the last 90 days?”

233. It’s Relationships, Stupid.

234. 19. Leaders Trust in TRUST !

235. Credibility !

236. If It Ain’t Broke … Break It.

237. 20. Leaders … FORGET!/ Leaders … DESTROY!

238. Cortez!

239. Leaders “dump the ones who brung ’em” — Nokia, HP, 3M, PerkinElmer, Corning, etc.

240. 21. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.”

241. “Damned If You Do, Damned If You Don’t, 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)

242. 22. Leaders … HONOR THE USURPERS.

243. Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision

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

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

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

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

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

249. “Enormous sums of money are invested to reduce cycle time, improve quality, reengineer … Much of this money is simply wasted. The waste is due to companies’ inability to develop wide-angle vision and tap into the … power of the edge.” Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

250. Leaders know … WE BECOME WHO WE HANG OUT WITH!

251. 23. Leaders Make [Lotsa] Mistakes – and MAKE NO BONES ABOUT IT!

252. “Fail faster. Succeed sooner.” David Kelley/IDEO

253. 24. Leaders Make … BIG MISTAKES!

254. “The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles. ” —Newsweek/ Paul Saffo (03.02)

255. Create.

256. 25. Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW MARKETS.

257. No one ever made it into the Business Hall of Fame on a record of “line extensions.”

258. 26. Leaders … Make Their Mark / Leaders … Do Stuff That Matters

259. “I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson

260. 27. Leaders Push Their Organizations W-a-y Up the Value-added/ Intellectual Capital Chain

261. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business!

262. 28. Leaders LOVE the New Technology!

263. 100 square feet

264. 29. Needed? Type IV Leadership: Technology Dreamer-True Believer

265. The Golden Leadership Quadrangle: (1) Creator- Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer

266. Talent.

267. 30. When It Comes to TALENT … Leaders Always Swing for the Fences!

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

269. 31. Leaders “Manage” Their EVP/ Internal Brand Promise.

270. MantraM3 Talent = Brand

271. 32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.

272. “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

273. Passion.

274. 33. Leaders … Out Their PASSION!

275. G.H.: “Create a ‘cause,’ not a ‘business.’ ”

276. 34. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM!

277. BZ: “I am a … Dispenser of Enthusiasm!”

278. 35. Leaders Focus on the SOFT STUFF!

279. “Soft” Is “Hard ” - ISOE

280. The “Job” of Leading.

281. 36. Leaders Know It’s ALL SALES ALL THE TIME.

282. TP: If you don’t LOVE SALES … find another life. (Don’t pretend you’re a “leader.”) (See TP’s The Project50.)

283. 37. Leaders LOVE “POLITICS.”

284. TP: If you don’t LOVE POLITICS … find another life. (Don’t pretend you’re a “leader.”)

285. 38. But … Leaders Also Break a Lot of China

286. 39. Leaders Give … RESPECT!

287. “It was much later that I realized Dad’s 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

288. 40. Leaders Say “ Thank You.”

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

290. 41. Leaders Are … Curious.

291. TP/08.2001: The Three Most Important Letters … WHY?

292. 42. Leadership Is a … Performance.

293. “It is necessary for the President to be the nation’s No. 1 actor.” FDR

294. 43. Leaders … Are The Brand

295. The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment- to-moment actions.

296. 44. Leaders … Have a GREAT STORY!

297. Leaders don’t just make products and make decisions. Leaders make meaning. – John Seeley Brown

298. “You must be the change you wish to see in the world.” Gandhi

299. Introspection.

300. 45. Leaders … Enjoy Leading.

301. “[Bertelsman’s Reinhard] Mohn wasn’t a creative type. What got him juiced was the art of running an organization and motivating the people who work there.” —Fortune/05.27.2002

302. “Warren, I know you want to ‘be’ president. But do you want to ‘do’ president?”

303. 46. Leaders … KNOW THEMSELVES.

304. 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.)

305. 47. But … Leaders have MENTORS.

306. The Gospel According to TP: Upon having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.)

307. 48. Leaders … Take Breaks.

308. Zombie! Zombie!

309. The End Game.

310. 49. Leaders ??? :

311. “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES”

312. 50. Leaders Know WHEN TO LEAVE!

313. XI. NEW BUSINESS. NEW RULES.

314. 15+/Bonus: Tom’s 60TIBs* *TIB = This I Believe

315. 1. TECHNICOLOR RULES! (Passion Moves Mountains!) 2. Audacity Matters! 3. Revolution Now! 4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!)

316. 6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you can’t take Silicon Valley out of the boy!) 7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AIN’T SEEN NOTHIN’ YET!) 9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT … OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)

317. 11. “Permanence” Is a Snare & a Delusion. (Forget “Built to Last.” It’s Yesterday’s Idea.) 12. Kaizen” (Continuous Improvement) Is … Dangerous. 13. DESTRUCTION RULES! 14. Forget It! (“Learning” = Easy. “Forgetting” = Nigh on Impossible.) 15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.)

318. 16. Boring Begets Boring. (Cool Begets Cool.) 17. Think “Portfolio.” (We’re All V.C.s.) 18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism of What They’re Up To.) 19. Action … ALWAYS … Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH … INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns!

319. 21. Haste Makes Waste. (SO GO WASTE!) 22. Screwups are … the … Mark of Excellence. (“Do It Right the First Time” Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!) 24. TALENT TIME! (He/She Who Has the Best “Roster” Rules!) 25. Re-do Education. Totally. (FOSTER CREATIVITY … NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)

320. 26. Diversity’s Hour Is Now! 27. SHE … Is the Best Leader! 28. MARKETING MANTRA: Embrace the “BIG THREE” Demographics. (1) SHE … is the Customer. (For everything.) (2) Rapidly Aging Boomers Have … ALL THE MONEY. (3) Green … Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY … Gets It.) (Mere “Programs” Will Not Suffice.) 29. Re-boot Healthcare. (UNDERSTATEMENT.) 30. WHAT ARE WE SELLING? “Experiences” & “Solutions” > “Quality” & “Satisfaction.” (The Traditional Value-added Equation Is Being Set on Its Ear.)

321. 31. DESIGN = New Seat of the Soul. 32. Branding Is for … EVERYONE. He Who Has the … BEST STORY … Takes Home the Marbles. 33. DRAMATIC DIFFERENCE = Only Difference. 34. WORDS/Language Matters … a Lot. (E.g.: Three Hearty Cheers for “Wow”!) 35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: “Are You Proud of It?”)

322. 36. eALL. (IS/IT: Half-way = No Way.) 37. DREAM … Big! DREAM … Enormous. DREAM … Gargantuan. (These Are XXXL Times.) 38. THINK MIKE! (Michelangelo: “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.”) 39. There Is Only … ONE BIG ISSUE. Cross- functional Communication. 40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF “UN-DUMBING.”)

323. 41. Beautiful Systems Are … BEAUTIFUL. 42. The … WHITE-COLLAR REVOLUTION … Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT … OR EXTINCT! 44. “Powerlessness” Is a State of Mind! Think: King. Gandhi. DeGaulle. 45. Pursue Adventure … in Every Task.

324. 46. EXCELLENCE … Is a State of Mind. (Excellence Takes a Minute.) (No Bull.) 47. SHOW UP! (If You Care, You’re There.) 48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your “TO DON’T” List.) 49. LIFE IS SALES. (The Rest Is Details.) 50. Boss Mantra #1: “I DON’T KNOW.” (“I Don’t Know” = Permission to Explore.)

325. 51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (“Manager” = Hurdle Removal Professional.) 52. Epitaph from Hell: “He Woulda Done Some Truly Cool Stuff … But His Boss Wouldn’t Let Him.” 53. Change Takes However Long You Think It Takes. (Eschew … “Incrementalism.”) 54. Respect! (Rule 1: Don’t Belittle!) 55. “Thank You” Trumps All!

326. 56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.) 57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.) 58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.) 59. DISPENSE ENTHUSIASM! 60. FUN …Is Not a 4-Letter Word. So, too … JOY. (And … GRACE.)

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

328. Thank You !