1. TOM PETERS’ LESSONS IN LEADERSHIP 2000 28 JANUARY RICHMOND

2. Seminar Y2K Brand Everything : Distinct or Extinct

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

4. Microsoft = R.O.W. (II) Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg + McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats Source: Yastrow Marketing (through 11-23-99)

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

6. 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)

7. Forces at Work The Destruction Imperative!

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

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

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

11. A: You merge with another big, dopey company that doesn’t have any ideas either.

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

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

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

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

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

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

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

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

20. “R & D” Intel’s venture fund: 275 investments, $3.5B Source: Fast Company (12-99)

21. [ Net World! Act now. Analyze later. Avram Miller ]

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

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

24. DYB.com*

25. *DestroyYourBusiness.com (GE)

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

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

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

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

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

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

32. “Medicine looks likely to change more in the next 20 years than it has in the last 200.” British Medical Journal (11-11-99)

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

34. [ TTTTTurbulent Times! Top 3 Americans > 48 poorest nations. World200 = 41% of world wealth. Source: Newsweek 12-99]

35. Brand Inside PSF 1: Brand Org!

36. 108 X 5 vs. 8 X 1* * 540 vs. 8

37. ERP, ECM, Web, Etc. IT’S THE GIANT SUCKING SOUND OF SLACK BEING EXTRACTED FROM THE GLOBAL ECONOMY!

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

39. Cemex and FDX!

40. CCC Information Services!

41. “Assetless Company” J.B.

42. RR on Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

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

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

45. “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.

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

47. PSF 1.0 Professional Service Firm Conversion Kit / Release 1.0

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

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

50. Credo “WORK WORTH PAYING FOR”

51. “support function” / “cost center” / “bureaucratic drag” or … “Rock Stars of the ‘Age of Talent’ ”

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

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

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

55. The “7Ps” of PSF 1.0 Projects! Passion! Provocation! Partnership! Politics! Professionalism! Performance!

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

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

58. Brand Inside PSF 2: Brand Work!

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

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

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

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

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

64. Reframers’ Rules: Rule 1: Never accept an assignment as given! Rule 2: You’re never so powerful as when you are “powerless”! Rule 3: Every “small” project contains the entire enterprise DNA!

65. Measures –WOW! –Beauty! –Raving Fans! –Impact!

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

67. Kaiser: 4.15.29

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

69. “Every project we take on starts with a question: How can we do what’s never been done before?” Stuart Hornery, CEO, Lend Lease

70. WOW Project “Acid Test” Can you explain it - with zest - to your 14-year-old?

71. The “Alumni Meeting” Test!

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

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

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

75. “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” Michael Schrage, Serious Play

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

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

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

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

80. Epitaph from Hell … Joe T. Jones 1942 - 2000 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

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

82. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

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

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

85. Seminar Y2K MESSAGE: THE WORK MATTERS!

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

87. Brand Inside PSF 3: Brand You!

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

89. DISTINCT … OR EXTINCT! “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

90. “If one quarter can’t make the journey, that’s the way it has to be.” Carly Fiorina (1-00/Forbes)

91. Personal “Brand Equity” Eval –My current Project is challenging me … –New things I’ve learned in the last 90 days include … –My public “recognition program” consists of … –I am known for … –Additions to my Rolodex include … –My resume is discernibly different from last year’s at this time …

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

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

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

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

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

97. R.D.A. Rate: 15%?, 25%? Formal “Investment Strategy”/ R.I.P./ Bold (WOW!)/ MEASURE!!

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

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

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

101. R.I.P. 5... Extensive course work in oddball area of passionate interest; major off- the-job activity [community involvement, learn to play the cello, study Chinese]. 1 … Company training, as directed.

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

103. [ Training Y2K Anytime, anywhere! Whatever! Concocted by the employee/ “Training Account”]

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

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

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

107. Seminar Y2K Message: Distinct … or Extinct!

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

109. 2 folks in Hartford …

110. MY ONLY GOAL - AS YOUR BOSS - IS TO HELP YOU DECIDE WHAT TO MAKE OF YOUR LIFE!

111. Brand Inside PSF 4: Brand Talent!

112. Issue Y2K The Great War for Talent !

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

114. “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

115. Alan Kay on PARC’s Bob Taylor “He was a connoisseur of talent.”

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

117. “Recruiting college students is a job for marketing, not HR.” Fast Company, on Jeff Daniel, CollegeHire.com

118. “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

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

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

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

122. “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

123. Attributes of Those Who “Made” the 10th Grade History Book –Committed! –Determined to make a difference! –Focused! –Passionate! –Irrational about their life’s project! –Ahead of their time / Paradigm busters! –Impatient! –Action Obsessed

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

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

126. “Conformity is the jailer of freedom and the enemy of growth.” J.F.K.

127. Just Say “No” to “Grout”! Participant: “Don’t you need ‘grout’ between the tiles?” TP: “No!” [med staff, NFL Special Teams,waiters, PFCs, cymbals player, bit parts, waiters]

128. [ EVP, S.O.U.B. ]

129. TP’s Ideal Job: Head of Housekeeping!

130. “The boundaries for acceptable weirdness have dramatically expanded.” Michael Schrage

131. Yes! Director of Bringing in the Really Cool People

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

133. Talent War Y2K! –All out!/ Time consuming! –Never ending!/ Unwinnable! –Includes everybody!/ Everybody’s game! (“We’re all in sales.”) –Expensive! –Cool!/ WOW!/ Fun!/ Creative! –Strategic!/ Core competence!

134. Talent = Brand

135. Brand Outside = Brand Inside

136. “Emotional values are replacing physical attributes as the fundamental market influence.” “This book is concerned with self-worth and belief.” “In the international market, it is no longer products that compete, it’s concepts.” “Only with a strong spirit at its foundation can a company achieve strong market position.” Jesper Kunde, Corporate Religion

137. “Creating a strong market position means more than focusing on brand awareness. A strong marketing position means creating a company that delivers internally and involves consumers externally.” BJ Cunningham, Corporate Religion

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

139. Brand Outside Context: No “Commodities”!

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

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

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

143. What’s Special? “Customers will try ‘low cost providers’ because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst (10-98)

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

145. “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, warranties and quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

146. The “10X/10X” Phenomenon 10 Times Better/ 10 Times Less Different

147. TP’s Campaign Y2K Just say [shout] “No!” to the “inevitable commoditization” of anything.

148. “When we did it ‘right’ it was still pretty ordinary.” Barry Gibbons on “Nightmare No. 1”

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

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

151. “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

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

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

154. “customer satisfaction” to “customer success” Source: GE Power Systems

155. “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

156. Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!

158. Brand Outside Strategy 1 : Lead the Customer!

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

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

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

162. “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

163. “The numbers [declining market share] don’t lie. Detroit’s single biggest failure has been its unwillingness to innovate. It is less risky to simply develop a new version of an existing product than to pioneer a new category.” Alex Taylor (Fortune)

164. Again: BRAND OUT = BRAND IN HIRE DULL … GET DULL!

165. Benchmarking, Perils of … “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

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

167. Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!

168. Brand Outside Strategy 2 : Master E-Commerce!

169. $30,000,000. = ???

170. Dell’s Web sales … daily

171. 350,000 = ?????

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

173. 2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)

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

175. The Motley Fool Secret? “Strangers helping strangers” “Fools’ Logic,” IW

176. And Larry?

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

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

179. World’s Largest Extranet! ANX/ Automotive Network Exchange/ “Data tone for the auto industry” Source: Philip Evans and Thomas Wurster, Blown to Bits

180. B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters 1-26-00) T

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

182. 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

183. “Autoweb. Take the Wheel.” Advertising Age

184. Shop in your Underwear Source: SM’d logo for www.ae.com ae = American Eagle Outfitters

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

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

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

188. Patricia Seybold’s “Basics”: The E-Customer Bill of Rights Don’t waste my time! Remember who I am! Make it easy for me to order and procure service! Customize your products and services for me! Source: customers.com

189. “Welcome back, Tommy!”

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

191. Read This. No: INGEST This! Jakob Nielsen Designing Web Usability: The Practice of Simplicity* *www.useit.com

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

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

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

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

196. Red Herring (01/00) 75% of online shoppers don’t complete their purchase!

197. “Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch

198. Web Strategy: GE Power Systems “Launch and Learn”/ 4 sites in 30 days/ Hire the best: SV location

199. Goodhome.com / 10 weeks!

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

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

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

203. Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!

204. Brand Outside Strategy 3 : Women Rule!

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

206. 48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

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

208. $3.3T + $1.5T = $4.8T* * Larger than Japan!

209. Most Under-reported story! 9M*/20M+/$4T [> Germany] * 400K in ’72; 132% since ’92; source: NFWBO, Cognetics

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

211. 1874?

212. 1874 … Jock Strap 1977 … Jogbra 1977... 25K 1996 … 42 M

213. Yikes? Ho-hum? 1970 … 1% 2000 … 50%

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

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

216. 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.”

217. “Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. … For a man, ignoring the price tag is almost a sign of virility.” Paco Underhill, Why We Buy* [*Buy this book!]

218. “In many industries traditionally dominated by men – the music business is an example – there is a traditional product orientation. It has been our very male goal to lure you into a store and quickly consummate the relationship with the transfer of a 44-kilohertz, stereo, 16-bit recording that you never replace. That is the transaction-based, satiated push world of yesterday. Such a product world is based on consummation. The consummated ‘relationship’ is disconnected, whereas the stimulated relationship is highly connected. … “The feminine view of the world is very different. Why discharge a relationship with the sale of an object or the delivery of a package. … Our future is this feminization of marketing, where the true value of content is to stimulate, not satiate. [The future of the Web] is the perfect seller/buyer relationship: always connected and sharing information. [A] sale starts, not ends, a relationship.” Jim Griffin, Business 2.0 (1-00)

219. [“The Net hasn’t lived up to its hype. It’s a distant, cold, alien, threatening world called ‘cyberspace.’ The challenge is to make the Net into something intimate, warm, friendly, useful, personal.” Carly Fiorina, CEO, HP @ Comdex ’99]

220. [ Marketing to Women: Understand that They’re #$%&*+#@ 80% … work 86% … cook 58% … run errands with kids 38% … take child to school 21% … go to the gym 21% … take outside classes]

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

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

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

224. Not!! “Year of the Woman”

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

226. “What kind of car does Mommy want?”

227. “I didn’t know [company] were giving company cars to secretaries.” Source: UK financial services CEO, 12/99

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

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

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

231. 74M/ Front Edge:55 “At each stage of their lives, the needs and desires of the baby boomers have become the dominant concerns of American business and popular culture. If you can anticipate the movement of the baby-boom generation’s life-span migration, you can see the future.” Ken Dychtwald, Age Wave

232. Aging/“Elderly” 2X growth rate $$$$$$$$$$$$ “I’m in charge!” “Experiences” vs. Products Design revolution! Good source: Ken Dychtwald, Age Wave

233. Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access … Respect!

234. Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!

235. Brand Outside Strategy 4 : Design Rules!

236. And Tomorrow … “Fifteen years ago companies competed on price. Now It’s quality. Tomorrow it’s design.” Robert Hayes

237. 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

238. “Design is treated like a religion at BMW.” Fortune (10/98)

239. Drop-dead Charm! “The new Beetle fails at most categories. The only thing it doesn’t fail in is drop-dead charm.” Jerry Hirshberg, Nissan Design International

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

241. [Design as Soul “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 that ends up expressing itself in successive outer layers of the product or service.” Steve Jobs]

242. Check Out the Language: “Tomorrow it’s design …” “Design is the only thing …” “Design is … religion...” “Drop-dead charm …” “Object of desire …”

243. “The company continues to run behind the curve. They’ve got to get out and lead the market in design.” Gerald Meyers, former chairman, American Motors, on GM (12-99)

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

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

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

247. [ Design Moments! Shopping cart = 2X heavy items Source: Wall Street Journal (11-24-99) ]

248. “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

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

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

251. Graceful language!

252. Susan Sargent Designs: PLEASE COMPLAIN! Thanks for your order! We dearly want everything to go p-e-r-f-e-c-t-l-y! If the order was late. Or wrong. Or if any of the goods are damaged in the slightest. Or if you’re just having a lousy day and want to unload on someone … Call our Customer Care Hotline!

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

254. WEB Words: TP NO CLUTTER!

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

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

257. Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!

258. Brand Outside Strategy 5 : It’s the Experience!

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

260. “What’s the plot?” Freeman Thomas, designer

261. “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

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

263. 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

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

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

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

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

268. Marketing Aesthetics “managing aesthetics experiences” … “aesthetics strategy” … “marketing of sensory experiences that contribute to the organization’s or brand’s identity” … “mapping strategic vision to sensory stimuli” Source: Marketing Aesthetics, Bernd Schmitt & Alexander Simonson

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

270. Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!

271. Brand Outside BRAND POWER!

272. Brand? Distinction Excellence Emotional “Signature” Trustworthiness Consistency Shorthand

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

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

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

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

277. “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

278. “Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and diversity, choices become increasingly informed by belief. [Consumers] want to know who is behind the products that they buy. They want to know the company. They want to know what you think.” Jesper Kunde, Corporate Religion

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

280. Calling the Corporate Shrink! “Organizational Psychotherapy”/ WHO WE ARE!

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

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

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

284. Brand = Special = Passion = Connection = Caring* * (Way) beyond “market research”

285. “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

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

287. “To succeed, we must stop being so goddamn normal. In a winner-takes-all world, normal = nothing. People expect good stuff. They have become used to great value for money. And they can get that from almost all companies around the world. So, being great is no longer good enough. Customer satisfaction is not enough. To succeed, we have to surprise people. We have to attract and addict them. Attention is all. By focusing only on the hardcore aspects of business, we risk becoming irrelevant. And trust us, irrelevancy is a much greater problem than inefficiency. The only thing more difficult than learning to exploit the last taboo of emotion and imagination is learning to thrive without it. So, people and organizations of the world – come out. Or you will be carried out.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

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

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

290. P.S.: This applies to the Finance Department* *Now: Finance Inc.

291. Brand Leadership Lead Out Loud!

292. Message Bran[d]son: Live the Brand!

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

294. “Astonish me!” S.D. “Build something great!” H.Y. “Immortal!” D.O.

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

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

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

298. “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

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

300. BE ASHAMED TO DIE UNTIL YOU HAVE WON SOME VICTORY FOR HUMANITY! Horace Mann, founder, Antioch College

301. “I’d rather regret the things I have done than the things I have not.” Lucille Ball

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

303. THE END