1. Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Mortgage Bankers Association/04.07.2003

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

3. “Uncertainty is the only thing to be sure of.” —Anthony Muh, head of investment in Asia, Citigroup Asset management (FT/03.27.2003)

4. “IT MAY SOMEDAY BE SAID THAT THE 21 ST CENTURY BEGAN ON SEPTEMBER 11, 2001. … “Al-Qaeda represents a new and profoundly dangerous kind of organization—one that might be called a ‘virtual state.’ On September 11 a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

5. From: Weapon v. Weapon To: Org structure v. Org structure

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

7. “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.

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

9. “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

10. “The mechanical speed of combat vehicles has not increased since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.” —Edward Luttwak, on the unprecedented pace of the move toward Bagdad

11. “A Big Electronics Show Is All About Connections” —headline, New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX

12. “Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away. — David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002)

13. “If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-sale- scanners share information on a near real- time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.” —Tom Stewart, Business 2.0

14. Eric’s Army Flat. Fast. Agile. Adaptable. Light … But Lethal. Brand You/ Talent/ “I Am An ARMY Of One.” Info-intense. Network-centric.

15. “Float like a butterfly. Sting like a bee.” —Ali

16. 1. The Destruction Imperative.

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

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

19. 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

20. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times/11.28.2002

21. “It’s just a fact: Survivors underperform.” —Dick Foster

22. “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

23. 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

24. “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

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

26. “The Industrial Revolution was about scale: vast factory complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. America’s military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.” —Robert Kaplan, Warrior Politics

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

28. Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company (New York, 5-99)

29. Jim & Tom. Joined at the hip. Not.

30. Huh? “Quiet, workmanlike, stoic leaders bring about the big transformations.”--JC

31. Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U. S. Grant/W. T. Sherman TR/FDR/LBJ/RR/JFK M.L. King C. de Gaulle M. Gandhi W. Churchill M. Thatcher Picasso Mozart Copernicus/Newton/Einstein J. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S. McNealy A. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison

32. “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)

33. “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)

34. Boyd

35. OODA Loop/Boyd Cycle “Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

36. “Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.”/ “Arrange the mind of the enemy.”—T.E. Lawrence/ “Float like a butterfly, sting like a bee.”—Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

37. “Maneuverists” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

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

39. 108 X 5 vs. 8 X 1 = 540 vs. 8 (-98.5%)

40. “The coefficient of friction associated with the grunge of business is amazing!” Michael Schrage

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

42. 100 square feet

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

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

45. From: Supply-chain Optimization To: Design-chain Optimization Source: Cadence Design Systems

46. 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

47. Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.

48. Translation … Bureaucracy free = Flat org, no B.S. Systemically integrated = Whole supply chain tightly wired/ friction-free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever “Instantly” responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements

49. Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

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

51. “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

52. Read It Closely: “We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive

53. “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

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

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

56. “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

57. “The e-conomy is one of re-intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change.” Thomas Koulopoulos, Delphi Group

58. Case: CRM

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

60. No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre- electronic age when service was more personal.” Rebuttal: (1) Service sucked in the “pre-electronic” age. (2) NewGen believes in the screen! (So do I.)

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

62. Here We Go Again: Except It’s Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3 rd ; 3.3M; 50% lower attrition rate; 50% higher growth in balances than off- line; more likely to cross-purchase; “happier and stay with the bank much longer.” B of A: 4M of 15M (“… way beyond the early adopters”). Source: The Wall Street Journal/10.21.2002

63. 3. The “PSF Solution”: The Professional Service Firm Model.

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

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

66. Sarah: “ Daddy, what do you do?” Daddy: “I’m a ‘cost center.’ ”

67. 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

68. Model PSF …

69. (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!

70. “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)

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

72. “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

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

74. “The Internet is the most effective profit- killer on earth … it stimulates a TRUE FREE MARKET; and a real free market is the most dangerous of marketplaces for companies selling the SAME OLD STUFF. To those with COURAGE, free markets are great—they help kill off the deadwood competitors who don’t have the courage to change—making way for them to LEVERAGE their DRAMATIC DIFFERENCE into profitable growth.”—Doug Hall

75. The Big Day!

76. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

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

78. 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).

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

80. “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)

81. “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

82. 5. A World of Scintillating/ Awesome/ WOW “Experiences.”

83. “ 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

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

85. “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

86. 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

87. WHAT CAN BROWN DO FOR YOU?

88. From “Service’ to “Cause” 7X. 730A- 800P. F12A.* *Plus: WOW Department’” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce Bank/NJ ($10B). Source: FC05.02.

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

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

91. 6. “It” all adds up to … THE BRAND.

92. The Heart of Branding …

93. “WHO ARE WE?”

94. “WHAT’S OUR STORY?”

95. “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

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

97. “EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

98. 1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug Hall

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

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

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

102. 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

103. 7. Toward Work that Matters: The WOW Project.

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

105. 8. Boss Job One: The Talent Obsession.

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

107. Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute

108. Brand = Talent.* *Duh.

109. Talent! Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.” Source: Business2.0/12.2002-01.2003

110. Model 25/8/53 Sports Franchise GM* *48 = $500M

111. PARC’s Bob Taylor: “Connoisseur of Talent”

112. Les Wexner: From sweaters to people!

113. “In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed Michaels

114. “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

115. “Differentiation is all about being extreme, rewarding the best and weeding out the ineffective. … You build strong teams by treating individuals differently. Just look at the way baseball teams pay 20- game winning pitchers and 40-plus homerun hitters.”—Jack Welch

116. “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)

117. “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]

118. “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

119. Duh! “We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood it’s in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. That’s what Super Saver is. All the signage is in both languages. There’s a 100 percent Spanish-speaking staff in the store.”—Larry Johnston, CEO, Albertson’s

120. “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

121. 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

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

123. “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

124. 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

125. 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

126. “The A students work for the B students. The C students run the business. The D students dedicate the buildings.” — Assertion to Kinko’s founder Paul Orfalea from his Mom (Fortune/05.13.02)

127. Ye gads: “Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school- related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

128. MantraM3 Talent = Brand

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

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

131. Talent’s “Big Two” Rules GREAT Finance Dept. = GREAT Football Team DIFFERENCES Among Cello Players = DIFFERENCES Among Hotel GMs

132. 9. THINK WEIRD … the HVA/ High Value Added Bedrock.

133. “We are crazy. We should do something when people say it is ‘crazy.’ If people say something is ‘good’, it means someone else is already doing it.” Hajime Mitarai, Canon

134. THINK WEIRD: The High Standard Deviation Enterprise.

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

136. 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

137. “If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College

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

139. 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

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

141. 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

142. Top-performing Companies “Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable” —Jeffrey Sonnenfeld, Yale School of Management

143. WE BECOME WHO WE HANG WITH!

144. Big Idea/s V.C. GM Portfolio Roster

145. Successful Businesses’ Dozen Truths: TP’s 30 Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.” 5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.” 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power.

146. 10. Trends: Women Roar.

147. ????????? 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%

148. 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

149. 1970-1998 Men’s median income: +0.6% Women’s median income: + 63% Source: Martha Barletta, Marketing to Women

150. 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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

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

153. 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.”

154. Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to women’s needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

155. Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* TP/Furniture: “Tech Specs” vs. “Soul.” ** *Redwood (UK) **High Point furniture mart (04.2002)

156. Initiate Purchase Men: Study “facts & features.” Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women

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

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

159. “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

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

161. Not ! “Year of the Woman”

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

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

164. 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

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

166. F.Y.I.

167. “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)

168. Investment Club Returns Women-only clubs 1997 … 17.9% Mixed … 17.3% Men-only … 15.6% Source: National Assoc. Investors

169. Value Line: Top State* Investment Clubs 2000 8 … All male 19 … Coed 22 … All FEMALE * VT & Maine not included; D.C. included

170. JBQ: Stop Treating Women Investors Like Idiots! “Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives.” Source: Newsweek 01.08.01

171. 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 4. Women buy lotsa stuff. 5. WOMEN BUY A-L-L THE STUFF. 6. Women’s Market = Opportunity No. 1. 7. Men are (STILL) in charge. 8. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 9. Women’s Market = Opportunity No. 1. 10. NO SHIT.

172. “Customer is King”: 4,440 “Customer is Queen”: 29 Source: Steve Farber/Google search/04.2002

173. 11. The Passion Imperative: Leading in Totally Screwed Up Times

174. The Urgency Factor: LEADERS … have a distorted sense of time. (E.g.: Rummy thinks he asked months ago … it was the day before yesterday.)

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

176. 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!)

177. “The lesson is the importance of relentless readjustment. At Microsoft they never get it right, but they’re constantly, relentlessly adjusting. And somehow, through constant readjustment practice over time, they gradually weave their way to the right place.” —George Colony, Forrester Research

178. “To Don’t ” List

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

180. 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson—1 season.

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

182. 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!

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

184. Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and imagine me immediately doing something about what you’ve just said. What would it be?” “Do you feel you have an obligation to ‘Make the world a better place’?”

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

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

188. Half-full Cups: “[Ronald Reagan] radiated an almost transcendent happiness.” Lou Cannon, George (08.2000)

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

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

191. 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

192. Thank You !