1. Tom Peters Seminar2004 NEW SLIDES

2. 09.05.04

3. “The era of ‘left brain’ dominance—and the Information Age it engendered— is giving way to a new world in which ‘right brain’ qualities— inventiveness, empathy, meaning—will govern.” —Dan Pink, A Whole New Mind

4. “The past few decades have belonged to a certain kind of person with a certain kind of mind—computer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers. But the keys to the kingdom are changing hands. The future belongs to a very different kind of person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers. These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its greatest joys.” —Dan Pink, A Whole New Mind

5. L-Directed Thinking: sequential, literal, functional, textual, analytic to R-Directed Thinking: simultaneous, metaphorical, aesthetic, contextual, synthetic Source: Dan Pink/A Whole New Mind

6. “Left-brain style thinking used to be the driver, and right-brain style thinking the passenger. Now R-Directed Thinking is suddenly grabbing the wheel, stepping on the gas, and determining where we’re going and how we’re going to get there. L- Directed aptitudes—the kind measured by the SAT and employed by CPAs—are still necessary. But they’re no longer sufficient.” —Dan Pink, A Whole New Mind

7. The Big Three Drivers of Change Abundance Asia Automation Source: Dan Pink, A Whole New Mind

8. “But abundance has also produced an ironic result: The very triumph of L- Directed Thinking has lessened its significance. The prosperity it has unleashed has placed a premium on things that appeal to less rational, more R-Directed sensibilities—beauty, spirituality, emotion.” —Dan Pink, A Whole New Mind

9. India 350,000 engineering grads per year >50% F500 outsource software work to India GE: 48% of software developed in India (Sign in GE India office: “Trespassers will be recruited”) Source: Dan Pink, A Whole New Mind

10. Software’s Enormous Inroads Docs Lawyers Accountants Source: Dan Pink, A Whole New Mind

11. Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind

12. Bob Lutz: “It’s more right brain. I see us being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Source: NYT 10.19.01

13. “The MFA is the new MBA.” —Dan Pink, A Whole New Mind

14. “What does this mean for you and me? How can we prepare for the conceptual age? On one level, the answer is straightforward. In a world tossed by Abundance, Asia and Automation, in a which L-Directed Thinking remains necessary but no longer sufficient, we must become proficient in R-Directed Thinking and master aptitudes that are ‘high concept’ and ‘high touch.’ But on another level, that answer is inadequate. What exactly are we supposed to do?” —Dan Pink, A Whole New Mind

15. Design. Story. Symphony. Empathy. Play. Source: Dan Pink, A Whole New Mind

16. Not just function, but also … DESIGN. Not just argument, but also … STORY. Not just focus, but also … SYMPHONY. Not just logic, but also … EMPATHY. Not just seriousness, but also … PLAY. Source: Dan Pink, A Whole New Mind

17. “Thousands of years of history suggest that the schoolhouse as we know it is an absurd way to rear our young; it’s contrary to everything we know about what it is to be a human being. For example, we know that doing and talking are what most successful people are very good at—that’s where they truly show their stuff. We know that reading and writing are important, but also that these are things that only a small and specialized group of people is primarily good at doing. And yet we persist in a form of schooling that measures our children’s ‘achievement’ largely in the latter terms, not the former … and sometimes through written tests alone.” —Deborah Meier, Foreword to Dennis Littky’s The Big Picture

18. The Real Goals of Education/Dennis Littky/The Big Picture *Be lifelong learners *Be passionate *Be ready to take risks *Be able to problem solve and think critically *Be able to look at things differently *Be able to work independently and with others *Be creative *Care and want to give back to their community *Persevere *Have integrity and self-respect *Have moral courage *Be able to use the world around them well *Speak well, write well, read well, and work well with numbers *AND TRULY ENJOY THEIR LIFE AND WORK

19. “What we want to see is the child in pursuit of knowledge, and not knowledge in pursuit of the child.” —George Bernard Shaw

20. “Teaching is listening. Learning is talking.” —Message painted on a Met advisor’s truck by his students (from Dennis Littky, The Big Picture)

21. “We have plenty of people who can teach what they know, but very few who can teach their own capacity to learn.” —Joseph Hart, educator

22. “From the media, we hear these great tearjerker stories of kids who succeeded despite the odds. But all of our kids are instead facing the odds of an education system that is all wrong. The odds are against them because the system works against them instead of with them. … I see it every day: kids who people have dismissed as ‘dumb in math’ or ‘uninterested in science’ or ‘nonreaders’ doing incredible things in these exact same areas because they were (finally) allowed to start with something they were already interested in. A 9 th -grade kid who ‘hates science’ sees a movie about freezing people, then decides to read a college biology text on cryogenics, and then gives a presentation on it that blows your socks off.” —Dennis Littky, The Big Picture

23. “The leader must have infectious optimism. … The final test of a leader is the feeling you have when you leave his presence after a conference. Have you a feeling of uplift and confidence?” —Field Marshall Bernard Montgomery

24. “Make it fun to work at your agency. … Encourage exuberance. Get rid of sad dogs who spread gloom.” —David Ogilvy

25. The “Intangibles Economy” Reaches Botswana “Mma Ramotswe had a detective agency in Africa, at the foot of Kgale Hill. These were its assets: a tiny white van, two desks, two chairs, a telephone, and an old typewriter. Then there was a teapot, in which Mma Ramotswe—the only lady private detective in Botswana—brewed redbush tea. And three mugs—one for herself, one for her secretary, and one for the client. What else does a detective agency really need? Detective agencies rely on human intuition and intelligence, both of which Mma Ramotswe had in abundance. No inventory would ever include those, of course.” —Alexander McCall Smith, The No. 1 Ladies’ Detective Agency

26. Support for Free Trade/>$100,000 1999: 57 % 2004: 28% Source: Dan Pink, A Whole New Mind

27. The Perils of Imitation “While the HealthTech team agreed they could outdo the competition’s brochures, they failed to recognize that something had changed while they sat around the conference table picking apart the competition. Their mission had shifted from the legitimate business goal of creating a powerful brochure designed to drive sales, to the egocentric exercise of beating what the competition had produced. In effect, the focus shifted from the battlefield to bragging rights.” —Mark Stevens, Your Marketing Sucks.

28. Best Web Site? buildabear.com

29. Build-A-Bear --1997 to 2004: $0 to $300M --Maxine Clark/CEO (25 yrs May Dept Stores) --Build-A-Bear Workshops --Engagement! (“Where Best Friends Are Made”) --http://www.buildabear.com/buildaparty

30. Bottom line: No promotion to senior levels of public or private enterprise should ever again be granted to anyone who does not present a CV saturated by a clear and compelling demonstration of sustained commitment to Radical Change. Do we wish for “good strategists”? Why not! But the heart of the matter goes far beyond any plan, no matter how brilliant. The heart of the matter is Heart & Will... a record of upsetting apple carts, dislodging “establishments,” and fundamentally altering deep-rooted “cultures” to embrace change of the most primal sort. I titled my most recent book Re-imagine! Business Excellence in a Disruptive Age. “Excellence” in a “disruptive age” is not excellence amidst placid waters. The notion of excellence itself changes... dramatically. We need our public and private Churchills, leaders who can re-imagine, who can call forth wellsprings of daring and guts and spirit and spunk, from one and all, to topple the way things may have been for many generations—and who inspire us to venture forth into today’s and tomorrow’s whitewaters with insouciance and bravado and determination.

31. At the heart of Boyd’s thinking is an idea labeled “OODA Loops.” OODA stands for the Observe-Orient-Decide-Act cycle. In short, the player with the quickest OODA Loops disorients the enemy to an extreme degree. In the world of aerial combat, for example, the confused adversary subjected to an opponent with short OODA cycles often flies into the ground rather than becoming the victim of machine gun fire or a missile. Boyd is careful to distinguish between raw speed and maneuverability. In aerial dogfighting in Korea (Boyd’s incubator), Soviet MiGs flown by Chinese pilots were faster and could climb higher, but our F-86 had “faster transients”—it could change direction more quickly; hence our technically inferior craft (by conventional design standards) achieved a 10:1 kill ratio.

32. Doug Hall, P&G vet and long-time proprietor of Eureka Ranch, is my favorite marketing guru. One reason is his... Declaration of Dramatic Difference. Well, he doesn’t call it that—I do. In Jump Start Your Business Brain, Hall gives us his Three Laws of Marketing Physics. The Law of Dramatic Difference is number three. It goes this way. Prospective customers evaluate a new product. Then they’re asked (1) if they’d buy it and (2) if they see it as “unique.” The firm’s execs in turn evaluate and weigh the prospective customers’ reactions. Without fail, the execs deciding to launch or not bet close to one-hundred of their marbles on the intent-to-buy question, and virtually ignore the uniqueness issue. The problem, or should I say “THE PROBLEM”: In actual fact the intent-to-buy response is a poor predictor of subsequent real-world success (or failure), while the “uniqueness” assessment almost perfectly predicts the true response to the product.

33. I was described in public as a “radical” by a senior Japanese official, during a Summer 2004 conference in Nagano. (Actually, which I guess even amplifies the label, he was a Japanese-American, who spent much of his career in Silicon Valley.) I retorted sharply that I was no such animal! Alas, he’d been taking detailed notes during my presentation. “But didn’t you say you could readily imagine a $50 billion corporation, perhaps in pharmaceuticals, which had only two full-time employees—you and one other. And ‘outsourced’ everything else?” Then he added that “one of the two would, of course, be a woman.”

34. Embracing the “Dream Society”: Even “culture change,” daunting as it is, is not a fully adequate term. Requisite is a particular type of culture change that flies in the face of most traditional training and development practices of, say, the last hundred or more years. “Most managers,” says Danish marketing guru Jesper Kunde in Unique Now... or Never, “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.” What about a new degree, an MMM (Master of Metaphysical Management) to supplant the MBA?

35. The Boomer-Geezer Opportunity 1. The numbers of people involved are... enormous. 2. The wealth of these people is... staggering. (The 50+ group in the U.S. controls 70 percent, or $7 trillion, of our wealth.) 3. This is the first “aging” group that... refuses to “act their age”—a very cool thing for goods and services producers. (“Sixty Is the New Thirty”—AARP magazine cover in 2003.) 4. The Boomer-Geezer cohort mostly wants to buy... experiences. 5. One more time: VERY FEW FIRMS ARE AGRESSIVELY ADDRESSING THIS ISSUE-OPPORTUNITY. (“Addressing” = Realigning “culture” to Embrace the Boomers-Geezers.)

36. A researcher at Nomura Securities’ Nomura Research Institute said we’ve been through the Age of Agriculture and the Industrial Age. We’re in the Age of Information Intensification, but on the horizon is the next (last?) stage: the Age of Creation Intensification. I’d agree. And... the point... an Age of Creation Intensification is as far away as one can imagine from “Show up. Shut up. Or starve.” In an Age of Creation Intensification the boss’s mantra (is he a boss?) is more like: “Help! Please help! Please commit your heart and soul and imagination to inventing clever and wonderful services-solutions-experiences-dreams come true. Join with me in inventing an Adventure, a Quest worth your time and my time and our clients’ time and money.” (“Boss-as- beggar-supplicant-before-the-alter-of-Talent” rather than “boss-as-drill-sergeant” comes to mind as an appropriate image.) Do I paint an unrealistic picture? In a word... no! Technology and globalization in all of their manifestations put organizational models and career models and leadership models up for grabs. (Media guru Marshall McLuhan once said, “If it works, it’s obsolete.” Soooo true of organizational arrangements, circa 2004.) The current winners—UPS, IBM, and Omnicom in business “services,” for instance—are forging completely new paths to an unknown and unknowable future. They will only progress if there is True Partnership among all parties to the enterprise—workers (Talent!!), Best Sourcing alliances, Cool & Pushy Clients, and the remaining minimalist superstructure. And such a True Partnership demands as a price of entry (a minimal reason for Seriously Cool Talent to “sign up”): Unstinting Integrity, Total Transparency, Passion-on-our-sleeves, and Spirit to burn (Steve Jobs: “Let’s make a dent in the universe”). Once more, I remind: I’m not suggesting the above because I think it’s “cool” or “right” or “good.” I’m “suggesting” (demanding!) such an approach because there’s not much likelihood that you can do otherwise and survive in a truly global, technology-rich, ambiguity- laden “age of creation intensification.”

37. HOW SWEET IT IS! Cubicle slavery is on its last legs. Commodity strategies are by and large bankrupt. Passion and commitment matter most. Creativity wins. The individual reigns. We’re on our own. (Ben Franklin would chuckle with delight!) (Henry Ford would be horrified!)

38. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST?

39. Pentium III 800MHz: $42,893.00/# Hermes Scarf: $1,964.29 Saving Private Ryan on DVD: $874.75 Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune (3.20.00)

40. You = Your Calendar (Period.)

41. Distinct … or … Extinct

42. Schools Circa 2010 … (1) Creativity (2) Arts orientation (3) Independence of spirit and action (a Brand You- entrepreneurial combo)

43. Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us- who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of us—and our organizations—are in ruts. Make that chasms.)

44. Places where passion is the centerpiece of the “culture” (restaurants, finance departments, platoons, movie crews) perform a helluva lot better than places that are “professional”—that is, calm & cool & collected.

45. “She made us close our eyes and hear the singers she was passionate about: Roberta Flack and Aretha Franklin. ‘Listen to the joy in their voices,’ urged Diane. ‘It’s not the words or the music. They sing with such great passion; such heart and soul. You can feel how the singers love what they are doing. It’s not just a job to them. If you want to excel, you need to be passionate! Otherwise, why waste your time?’” —former player, on Coach Diane Geppi- Aikens

46. Boomers & Geezers 1. The numbers of people involved are... enormous. 2. The wealth of these people is... staggering. (The 50+ group in the U.S. controls 70 percent, or $7 trillion, of our wealth.) 3. This is the first “aging” group that... refuses to “act their age”—a very cool thing for goods and services producers. (“Sixty Is the New Thirty”—AARP magazine cover in 2003.) 4. The Boomer-Geezer cohort mostly wants to buy... experiences. 5. One more time: VERY FEW FIRMS ARE AGRESSIVELY ADDRESSING THIS ISSUE-OPPORTUNITY. (“Addressing” = Re-aligning “culture” to Embrace the Boomers-Geezers.)

47. Big/Mostly Missed Market OPPORTUNITIES 1. Women buy everything. (Everything = A really, really lot.) 2. Boomers & Geezers have all the money. (Trillions upon more trillions.) 3. The Hispanic market is growing soooooo fast and is influencing styles soooooo fundamentally, it’d make your head swim … if you were paying the slightest bit of attention. (Hispanic-origin population in the U.S. grew by 39 percent from 1990 to 2000—while the population as a whole increased by 9 percent.) 4. “Outside the beltway” concerns with All Things Green are growing exponentially. Green products. Green buildings. Environmental sensibilities and stewardship as a primary measure of enterprise citizenship. 5. Medicine, the practice thereof, many miracle cures and the stupendous promise of biotech not withstanding, is broken. Dealing with problems before they arise is becoming “the new cool”— at least it is if you’re a patient. Hence: Wellness (products & services) is a burgeoning market. No, make that “stupendous.” 6. DAMN FEW ARE PAYING ATTENTION TO ANY OF THE ABOVE—OR AT LEAST NO MORE THAN LIP SERVICE. 7. To “take advantage” requires far, far more than “initiatives”—it demands fundamental strategic & cultural enterprise re-alignment. (E.g.: If you want to glom on to the “women’s market opportunity,” more or less put lots & lots of women in charge—see above.) 8. So … use the new micro-segmentation tools to your heart’s desire—but don’t forget the basics. 9. REPEAT AFTER ME: WOMEN BUY EVERYTHING! 10. REPEAT AFTER ME: BOOMERS AND GEEZERS HAVE ALL THE MONEY! 11. REPEAT AFTER ME: THERE ARE A LOT MORE HISPANICS AROUND THAN THERE WERE YESTERDAY. 12. REPEAT AFTER ME: DO I HATE MONEY? AM I ASHAMED OF PROFIT? AM I AN ENEMY OF CAPITALISM? IF “NO” TO THESE QUESTIONS, THEN WHY AM I SO STUPID?

48. Women & Leadership 1. The world is changing. (Duh.) 2. New sorts of leadership-managerial skills are needed to deal with a New World. (Duh.) 3. Men and women are different. (Duh.) 4. Very different. (It’s a fact.) 5. The leadership skills that women tend to bring to the party are an excellent match with the new needs of enterprise. (Cool.) 6. Enterprise rules & mores are designed by men, for men. (Not surprisingly, men play well with toys they designed.) 7. Women are still woefully underrepresented in leadership ranks—e.g., 8 of the Fortune 500 chiefs are women. 8. While I don’t seek a formal measure of numeric equality, I do scream: WE ARE MISSING ONE HELLUVAN OPPORTUNITY HERE! (Duh.)

49. Healthcare’s 1-2 Punch 1.Hospital “quality control,” at least in the U.S.A., is a bad, bad joke. Depending on whose stats you believe, hospitals kill 100,000 or so of us a year—and wound many times that number. Finally, “they” are “getting around to” dealing with the issue. Well, thanks. And what is it we’ve been buying for our Trillion or so bucks a year? The fix is eminently do-able … which makes the condition even more intolerable. (“Disgrace” is far too kind a label for the “condition.” Who’s to blame? Just about everybody, starting with the docs who consider oversight from anyone other than fellow clan members to be unacceptable.) 2. The “system”—training, docs, insurance incentives, “culture,” “patients” themselves—is hopelessly-mindlessly-insanely (as I see it) skewed toward fixing things (e.g. Me) that are broken—not preventing the problem in the first place and providing the Maintenance Tools necessary for a healthy lifestyle. Sure, bio- medicine will soon allow us to understand and deal with individual genetic pre- dispositions. (And hooray!) But take it from this 61-year old, decades of physical and psychological self-abuse can literally be reversed in relatively short order by an encompassing approach to life that can only be described as a “Passion for Wellness (and Well-being).” Patients—like me—are catching on in record numbers; but “the system” is highly resistant. (Again, the doctors are among the biggest sinners—no surprise, following years of acculturation as the “man-with-the-white- coat-who-will-now-miraculously-dispense-fix-it-pills-for-you-the-unwashed.” (Come to think of it, maybe I’ll start wearing a White Coat to my doctor’s office—after all, I am the Professional-in-Charge when it comes to my Body & Soul. Right?)

50. Hunch!? I have a sense that there’s an interesting nexus among several of the ideas I’ve just discussed … namely Women-Boomers-Wellness- Intangibles. Each one shoves the Fundamental Economic Value Proposition toward the “softer side”: From facts- & figures-obsessed males to relationship-oriented Women. From goods-driven youth to “experiences”- craving Boomers. From quick-fix & pill-popping “healthcare” to a holistically inclined “Wellness Revolution.” From “goods” and “services” to Design- & Creativity-rich Intangibles-Experiences-Dream Fulfillment. This so-called “softer side”—as IBM’s Palmisano and Harley’s Teerlink teach us—is now & increasingly “where the loot is,” damn near all the loot. That is, the “softer side” has become the Prime Driver of tomorrow’s “hard” economic value. Each of the Four Key Ideas (Women-Boomers-Wellness-Intangibles) feeds off and complements the other three. Dare I use the word “synergy”? Perhaps. (Or: Of course!) I can imagine an enterprise defining its raison d’etre in terms of these Four Complementary Key Ideas. (HINT: DAMN FEW DO TODAY.)

51. “Reward excellent failures … punish mediocre successes”: (1) World gyrating madly. (2) “Stop the world, I want to get off”—NOT AN OPTION. (3) Better get going. (4) Better try something as Bold & Brave & Daring as the Bold Times cry out for—if survival is your/my game. (5) When you try Bold & Brave & Daring Stuff—bruises aplenty are your almost guaranteed lot. (6) But expending Precious Time (What else is there?) on timid excursions (“mediocre successes”—at best!) is a Certain Recipe for Economic Marginalization. (7) So … GO FOR IT! (8) And … cherish those “excellent failures” that are increasingly sure to be your lot as you claw toward survival and “new excellence” in these wondrous-madcap-maddening times.

52. Nexus/Confluence Self-service Ownership Society Brand You 1t1

53. “The transfer of power from West to East is gathering pace and soon will dramatically change the context for dealing with international challenges— as well as the challenges themselves.” —James Hoge, editor, Foreign Affairs, “A Global Power Shift in the Making: Is the United States Ready?”

54. “AT&T Said to Be Takeover Target” —headline, Newsweek, 07.26.04, on KKR’s possible bid

55. HealthGrades/Denver: 195,000 hospital deaths per year in the U.S., 2000-2002 = 390 full jumbos/747s in the drink per year. Comments: “This should give you pause when you go to the hospital.”—Dr. Kenneth Kizer, National Quality Forum. “There is little evidence that patient safety has improved in the last five years.”—Dr. Samantha Collier Source: Boston Globe/07.27.04

56. “Some grocery stores have better technology than our hospitals and clinics.” —Tommy Thompson, HHS Secretary Source: Special Report on technology in healthcare, U.S. News & World Report (07.04)

57. “For today’s emancipated, educated, high- expectation women, the mid-forties to mid- fifties is the Age of Mastery.” —Gail Sheehy (in More)

58. “All you need to know about mental health can be summed up in only two words … DON’T BELITTLE.” —Norm Guitry

59. Direct Selling’s Potent Promise -- “This industry is global and is growing exponentially.”—Roger Barnett, investment banker specializing in direct selling -- DSA: 175,000 Americans sign up per week (475,000 world wide) -- All industries (wellness, telecoms, financial services … Crayola’s Big Yellow Box) -- Global: Avon, 70%; Tupperware, 75%; China & India huge -- MLM’s share of direct selling: 56% in 1990 to 82% in 2003

60. TP’s July “Journey to Direct” -- infoUSA Client Conference/DBM -- Chairman/DNC -- Wired on Arnold/Howard/moveon.org -- BzzAgent.com and TPC --Guerilla PR Wired: Waging a Successful Publicity Campaign Online, Offline, and Everywhere in Between/Michael Levine (TP starts blogging) -- My Dinner With … party planning consultants -- 15,000 WFGers

61. Sakie Fukushima, MD/Japan/KornFerry and … first woman Director … Sony!

62. “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That, after all, is the purpose of strategy. We have become the leaders and the incumbents [IBM, Accenture] are followers, forever playing catch up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors and society. We have seen all that in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report 2003

63. “BABY-BOOMER, COME HOME: Gap Hopes a New Chain Will Bring Back Women Who Once Bought Its Jeans” —headline/BusinessWeek/0704

64. Now You’ve Heard It All … “We want our branches to be a place where people come as a destination.” —Amy Brady, on the BofA effort to learn from Starbucks and Gap (“The Fun Factor”/The Boston Globe/08.30.04

65. The Old 1-2 Punch … “[Typical sales training courses] teach you to ‘deal with’ ‘objections’ and such. They ought to teach you how to keep your lips zipped and listen. You know, Tom, the old one about why ‘God gave us one mouth and two ears.’ I’ve been in this business for twenty-five years, and I guarantee you ‘great sales skills’ are ninety-nine percent about respect and empathy and listening.” —Sales Exec, F, conversation on a plane trip

66. Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” —Nathan Myhrvold, former Chief Scientist, Microsoft

67. Growth Projections: 2003-2010 Narrowcast media … 13.5% Mass media … 3.5% Source: Sanford C. Bernstein & Co

68. Mass Narrowcast 1t1: DBM/CRM 1t1: Web 1t1:Direct Mail 1t1: Telemarketing 1t1: Door-to-door Reps 1t1:MLM

69. 440 new consumer mags in 2003/ 10% of 6,200 total mags are general interest, down from 30% in 1980 —Samir Husni/U. Miss/BW0704 “It’s not size that counts most, but the ability to deliver someone elusive to advertisers.” —Mary Berner/CEO/Fairchild Publications/2003: W Jewelry to 75,000 of W’s 469,000 subscribers who spend >$60,000 a year on jewelry

70. “Money that used to go for 30-second network spots now pays for closed-circuit sports programming piped into Hispanic bars and for ads in Upscale, a custom- published magazine distributed to black barbershops. … ‘We are a big marketer— we are not a mass marketer,’ says Lawrence Light, McDonald’s chief marketing officer.” —BW/0704

71. “Monolithic blocks of eyeballs are gone. In their place is a perpetually shifting mosaic of audience micro-segments that forces marketers to play an endless game of hide-and- seek.” —Eric Schmitt/Forrester Research/ BW(0704)

72. “If you go back 40 years, people wanted to be identified as normal. So they wanted the most popular car and the most popular color. From the consumer point of view, we’ve had a change from ‘I want to be normal’ to ‘I want to be special.’” —Lawrence Light, Global Chief Marketing Officer, McDonald’s (BW/07.04)

73. “If we look over just the last half-dozen years, our media mix has shifted in the U.S. from two- thirds on prime-time network TV to two-thirds not on prime-time network.” —Lawrence Light, Global Chief Marketing Officer, McDonald’s (BW/07.04)

74. “The old days of advertising vs. promotion vs. merchandising vs. display vs. events— that’s a mindset that has to disappear. It’s all promotion. The purpose is to elevate the brand perception in the customer’s mind. A T-shirt is a medium, a package is a print ad, it’s not just a container; we think about a store design as outdoor advertising.” —Lawrence Light, Global Chief Marketing Officer, McDonald’s (BW/07.04)

75. Q/BW : Do you think the mass market is a thing of the past? A/Lawrence Light, McD’s Global CMO: The answer is yes. … What has changed is technology has facilitated our ability to reach people on a more customized, more personalized basis. That’s a revolution.

76. Old New Consumers Couch potatoes, passively Empowered media users control receive whatever the and shape the content, thanks networks broadcast to TiVo, iPod and the Internet Aspirations To keep up with the crowd To stand out from the crowd TV Choice Three networks plus a Hundreds of channels, plus PBS station, maybe video on demand Magazines Age of the big glossies: Age of the special interest: Time, Life, Look and A magazine for every hobby Newsweek and affinity group Ads Everyone hums the Talking to a group of one: Alka-Seltzer jingle Ads go ever narrower Brands Rise of the big, ubiquitous Niche brands, product extensions brands, from Coca-Cola and mass customization mean to Tide lots of new variations Source: BusinessWeek/07.12

77. ?????????????? “Never sacrifice a friendship for a good column.” v. “Never sacrifice a good column for a friendship.”

78. “You get an educated workforce, remarkable infrastructure, a lot of government support. These [Southeast Asian] governments have made life sciences a top priority—and they have a great venture capital community there.” —Glenn Rice, VP Pharmaceutical Discovery and Development, SRI International (On the rapid migration of drug discovery from the U.S. at a 20% to 40% cost saving Rice adds that 40% to 60% of U.S. postdocs are from China and Taiwan) From: Stanford Business /August 2004

79. “Welch was to a large degree a growth-by- acquisition man. ‘In the late ’90s,’ Immelt says, ‘We became business traders, not business growers. Today organic growth is absolutely the biggest task of every one of our companies. If we don’t hit our organic growth targets, people are not going to get paid.’ … Immelt has staked GE’s future growth on the force that guided the company at its birth and for much of its history: breathtaking, mind- blowing, world-rattling technological innovation.” —“GE Sees the Light”/Business 2.0/July 2004

80. “I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/ Wells Fargo/Forbes08.2004 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

81. Total Enterprise Revision: “Not optional” Total “Value proposition” revision: “Not optional” “All-the-way” IS/IT solutions: “Not optional” Full-scale globalization: “Not optional” Work done where it best makes sense: “Not optional”

82. Re-imagine General Electric “Welch was to a large degree a growth-by-acquisition man. ‘In the late ’90s,’ Immelt says, ‘we became business traders, not business growers. Today organic growth is absolutely the biggest task of every one of our companies. If we don’t hit our organic growth targets, people are not going to get paid.’ … Immelt has staked GE’s future growth on the force that guided the company at its birth and for much of its history: breathtaking, mind-blowing, world-rattling technological innovation.” —“GE Sees the Light”/Business 2.0/July 2004

83. America’s Rule #1: Don’t even think about competing with Wal*Mart on price or China on cost!

84. “I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/ Wells Fargo/Forbes08.2004 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

85. Market Share, Anyone? 240 industries: Market-share leader is ROA leader 29% of the time Source: Donald V. Potter, Wall Street Journal

86. “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

87. Not “out sourcing” Not “off shoring” Not “near shoring” Not “in sourcing” but … “Best Sourcing”

88. Job One: Getting (WAY) beyond the “Cost center,” “Overhead” mentality

89. “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

90. 46 Pages: Thomas Paine, Common Sense, and the Turning Point to Independence Ideas matter! “Viral marketing” rules! “End runs” are requisite! Keep it simple, stupid! It takes a renegade!

91. “Researchers asked subjects to count the number of times ballplayers with white shirts pitched a ball back and forth in a video. Most subjects were so thoroughly engaged in watching white shirts that they failed to notice a black gorilla that wandered across the scene and paused in the middle to beat his chest. They had their noses buried in their work that they didn’t even see the gorilla. “What gorillas are moving through your field of vision while you are so hard at work that you fail to see them? Will some of these 800-pound gorillas ultimately disrupt your game?” —Yoram Wind and Colin Crook, The Power of Impossible Thinking: If You Can Think Impossible Thoughts, You Can Do Impossible Things

92. Searching for Antidotes: “What’s most important?” “Everything!” FOCUS [2 things/120 days][2 = 90%] CLARITY [10 words, max] INTENSITY ENTHUSIASM HUMOR [a game] OPTIMISM [If it kills you] VISIBILITY REPITITION [3/day] EXTREME [1/week]

93. “Some people look for things that went wrong and try to fix them. I look for things that went right, and try to build off them.” —Bob Stone (Mr REGO)

94. The Case for IPMs (Itinerant Potential Machines) “It is almost impossible to take action to prevent something that hasn’t occurred previously” —Judge Richard Posner, “The 9/11 Report: A Dissent”/New York Times

95. Only One Big Issue … “People think the president has to be the main organizer. No, the president is the main dis-organizer. Everybody ‘manages’ quite well; whenever anything goes wrong, they take immediate action to make sure nothing’ll go wrong again. The problem is, nothing new will ever happen, either.”* —Harry Quadracci, Quad/Graphics *Beware ICD/Inexorable Centralist Drift—TP

96. Everything You Need to Know about “Strategy” 1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue Audacious Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others would call “problems”? And what about your Extended Community of customers, vendors et al? 3. Is your Board of Directors as cool as your product offerings … and does it have 50 percent (or at least one-third) Women Members? 4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation … not Imitation! 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co- authors of In Search of Excellence? Are your O.O.D.A. loops shorter than the next guy’s? 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto or de jure motto? 7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”? 8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to associate with the ‘best of the best’.” 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal? 10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an “awesome experience” that does nothing less than transform the way she or he sees the world? 11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires fundamental re-alignment of the enterprise? 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto? 13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)

97. Ten Good Reasons to “Get Up in the Morning” 1. Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) Foster the “Brand You Spirit” and the “Entrepreneurial Urge” at every turn. (Or else.) 2. Blow up “education” as we know it today! Re-tool education to emphasize the arts, creativity, entrepreneurial behavior. (Or else.) 3. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst. 4. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet! Make Passion your Passion! (Hint: Passion makes the world go ‘round.) 5. Be a champion for: Women Roar! Women Rule! 6. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: Women, Boomers and Geezers, Hispanics, Greenies, Wellness. 7. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-Wellness. (And “kindly suggest” that the “acute-care” “industry” give some passing thought to Quality.) 8. Ensure that the historically neglected “intangibles” are the prime basis for individual and enterprise success. 9. Support Globalization as the best—if indeed messy—path to maximum human freedom, security and welfare. 10. Swear by the motto: “Reward excellent failures; punish mediocre successes.”

98. 07.19.04

99. Colorado Springs: McDonald’s call center for Drive- through (incl. electronic photo of customer) Source: NYT/07.18.04

100. MinuteClinic: “Next to the Express Checkout, Express Medical Care” Source: Headline/NYT/07.18.04 (on MinuteClinic at Targets and Cub Foods stores in Minneapolis

101. Business 2.0 outsources section of August 2004 issue! Source: USA Today/07.19.2004

102. 07.18.04

103. New York-Presbyterian: 7-year, $500M consulting (generic) and equipment contract with GE Medical Systems Source: NYT/07.18.2004

104. 07.16.04

105. Kodak …. Fuji GM …. Ford Ford …. GM IBM …. Siemens, Fujitsu Sears … Kmart Xerox …. Kodak, IBM

106. Whoops: “Great speech, Tom, but you missed the most important point.”

107. “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/07.19.2004

108. 07.14.04

109. Two Weeks in July 2004: Not Your Father’s World!

110. “China’s size does not merely enable low-cost manufacturing; it forces it. Increasingly, it is what Chinese businesses and consumers choose for themselves that determines how the American economy operates.” —Ted Fishman/“The Chinese Century”/ The New York Times Magazine /07.04.04

111. “One Monday this spring, a forty-three-year-old salesclerk at the Home Depot in Plano, Texas, scribbled some updates onto an old resume and took it to his local copy shop. To his education and work history—a bachelor’s degree in industrial engineering and technology, service in the U.S. Marine Corps—he added a recent moonlighting job as a handyman and a new ‘career objective.’ Ten minutes later, in southern India, a middle-age Hindu man in a cavernous workplace began to type the Home Depot clerk’s words.” —The New Yorker /07.05.2004

112. “The Ultimate Luxury Item Is Now Made in China” —Headline/p1/The New York Times/ 07.13.2004/Topic: Luxury Yachts made in Zhongshan

113. “Vaunted German Engineers Face Competition From China” —Headline, p1/WSJ/07.15.2004

114. “JET BLUE has a secret weapon: a virtual reservations center. … Jet Blue’s 600 agents all work from home. …” Source: Ad for Avaya/BW/07.19.2004

115. 07.12.04

116. Re-imagine!* 1.Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) 2. Encourage the entrepreneurial (Brand You) spirit in people of all ages; lead the parade of those aiming to “Free the Cubicle Slaves.” 3. Urge education “bureaucrats” (From kindergarten to MBA schools) to emphasize the arts, creativity, entrepreneurial behavior. 4. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst. 5. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet. 6. Be a champion for: Women Roar! Women Rule! 7. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: women, boomers and geezers, Hispanics, greenies, wellness. 8. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-wellness. 9. Nurture the “lesser” “intangibles”—such as design/experiences and innovation—as the prime basis for individual and enterprise success. 10. Support Globalization as the best/only—if indeed messy—path to maximum human freedom, security and welfare. 11. Fight bureaucratic rigidities, centralization and mindless gigantism to the death. 12. Swear by the motto: “Reward excellent failures; punish mediocre successes.” 13. Foster a “sense of grace and care” in enterprises and organization-client transactions of all flavors. *Why I get out of bed in the morning/TP/07.12.2004

117. All You Need to Know About “Strategy” 1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue audacious Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others would call “problems”? 3. Is your Board of Directors as cool as your product offerings … and does it have 50% (or at least one-third) Women Members? 4. Are Innovation and Entrepreneurship your primary aims? 5. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? 6. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”? 7. Do you embrace the new technologies with child-like enthusiasm/revolutionary zeal? 8. Do you “serve” customers … or go berserk attempting to provide every customer with an “awesome experience” that automatically turns her/him into a “raving fan”? 9. Are your leaders accessible? Do they wear their passion on their sleeves? Is yours a “hot place to hang out” and “learn cool stuff”? 10. Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto? 11. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 10 above!)

118. Take no shit. Kick ass. Mean it. Don’t ever, ever surrender. And, for God’s sake, be vital. Source: Jayson Gallaway, Diary of a Viagra Fiend

119. “Never mind your happiness; do your duty.” —Peter Drucker (BrainyQuote.com)

120. 07.05.04

121. The Work Matters! “What we do matters to us. Work may not be the most important thing in our lives or the only thing. We may work because we must, but we still want to love, to feel pride in, to respect ourselves for what we do and to make a difference.” —Sara Ann Friedman, Work Matters: Women Talk About Their Jobs and Their Lives