Tom Peters’ Re-Imagine Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Dublin/12.March.2003

Slides at … tompeters.com

You must become an ignorant man again And see the sun again with an ignorant eye And see it clearly in the idea of it. --Wallace Stevens/“Notes Toward a Supreme Fiction”

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

I. NEW BUSINESS. NEW CONTEXT.

All Bets Are Off.

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

“The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. … “ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy and slow.’ ”—The New York Times/09.04.2002

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

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

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

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

NOKIA Connecting People

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

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

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

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

“Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week.” –Meg Whitman, CEO, eBay

2. The Destruction Imperative.

“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

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

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

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

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

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

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

“Conglomerates don’t work” —James Surowiecki, The New Yorker (07

TP on Acquisitions 1. Big + Big = Disaster. (Statistically TP on Acquisitions 1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.) 2. Big (GE, Cisco, Omnicon) acquires small/specialist = Good … if you can retain Top Talent. 3. Odds on achieving “projected synergies” among Mixed Big “cultures”: 10%. 4. Max Scale Advantages are achieved at a smaller size than imagined. 5. Attacked by Big, Mediocre Medium marries Mediocre Medium to “bulk up.” Result: Big Mediocrity … or worse. 6. Any size—if Great & Focused—can win, locally or globally. 7. Increasingly, Alliances deliver more value than mergers —and clearly abet flexibility.

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

“Active mutators in placid times tend to die off “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.” Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors

Lessons from the Bees! “Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What the bees are telling us is that the corporate world has got it all wrong.” David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK]

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

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

“The secret of fast progress is inefficiency, fast and furious and numerous failures.” Kevin Kelly

RM: “A lot of companies in the Valley fail RM: “A lot of companies in the Valley fail.” RN: “Maybe not enough fail.” RM: “What do you mean by that?” RN: “Whenever you fail, it means you’re trying new things.” Source: Fast Company

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

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

The [New] Ge Way DYB.com

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

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

“In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshed—and produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce—the cuckoo clock.” Orson Welles, as Harry Lime, in “The Third Man”

Jim & Tom. Joined at the hip. Not.

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

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

Warren Bennis & Patricia Ward Biederman/ Organizing Genius: Great Groups Don’t Last Very Long!

W.A. Mozart 1756 – 1791 HE CHANGED THE WORLD AND ENRICHED HUMANITY

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

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

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)

II. NEW BUSINESS. NEW TECH.

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

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

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

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

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

Deep Blue Redux. : 2,240 EKGs … 1,120 heart attacks Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of Lund/SW) : 620. Lars Edenbrandt’s software: 738. *Only this time it matters!

“Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer-generated robots will take over the world.” – Stephen Hawking, in the German magazine Focus

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

100 square feet

The Real “News”: X1,000,000 TowTruckNet.com

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

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

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

“Ebusiness is about rebuilding the organization from the ground up “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.” Ray Lane, Kleiner Perkins

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

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

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

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

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

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

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

Case: CRM

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

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

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

“Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. … What we are witnessing is a collapse of that advantage, prestige and authority.” Michael Lewis, next

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

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

Here We Go Again: Except It’s Real This Time. Bank online: 24. 3M (10 Here We Go Again: Except It’s Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3rd; 3.3M; 50% lower attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and stay with the bank much longer.” B of A: 4M of 15M (“… way beyond the early adopters”). Source: The Wall Street Journal/10.21.2002

III. NEW BUSINESS. NEW VALUE PROPOSITION.

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

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

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

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

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

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

Message: You are Re-invention Evangelists!

TP to HRMAC: You are the … Rock Stars of the Age of Talent!

DD$21M

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

Model PSF …

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

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

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

Base Case: The Sameness Trap

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

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

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

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

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

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Gameboy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/02.2003

The Big Day!

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

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

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

Is There a There There: The Ericsson Case 1 Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on “crown jewel” handsets 5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal” Source: BW/11.04.02

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

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

Keep In Mind: Customer Satisfaction versus Customer Success

Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”). Source: USA Today/06.14.2002

E.g. … UTC/Otis + Carrier: boxes to “integrated building systems” So, too, Otis. (Elevators.) And Carrier. (Air conditioners.) (Both are subsidiaries of UTC.) They plan to go from providing “boxes” – air conditioners and elevators – to Integrated Building Subsystems ... with Consultative Services Added. How’s that for Web-enabled dreaming?

Leased AC: Units of “Coolth”

“A little-known fact: Siemens is now the world’s largest application service provider* to the health business. Digitally stored X rays, recordkeeping, the cameras that guide surgeons in the operating theater—all run on Siemens software” —Forbes/09.16.2002 *E.g.: “Siemens is giving Health South an all-digital ‘hospital of the future.’ ”

“UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

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

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

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

IV. NEW BUSINESS. NEW BRAND.

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

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

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

“The [Starbucks] Fix” Is on … “We have identified a ‘third place “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

“Guinness as a brand is all about community “Guinness as a brand is all about community. It’s about bringing people together and sharing stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse

Experience: “Rebel Lifestyle 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

The “Experience Ladder” Experiences Services Goods Raw Materials

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

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

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

“Car designers need to create a story “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

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

First Step (?!): Hire a theater director, as a consultant or FTE!

Experience … Cirque du Soleil

DO YOU MEASURE UP?* *If not, why not?

“Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique now … or never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods: Male dominance Services & Experiences: Female dominance

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

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

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

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

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

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

9. “It” all adds up to … THE BRAND.

The Heart of Branding …

“WHO ARE WE?”

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

“WHAT’S OUR STORY?”

“We are in the twilight of a society based on data “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

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

Message: ALL ‘BUSINESS MODELS’ ARE IN FACT … BRAND STATEMENTS!

“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

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

2 Questions: “How likely are you to purchase this new product or service?” (95% to 100% weighting by execs) “How unique is this new product or service?” (0% to 5%*) *No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

“WHY DOES IT MATTER TO THE CLIENT?”

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

Message: REAL Branding is personal. REAL Branding is integrity Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency & freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments, all hands affair.

“You do not merely want to be the best of the best “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

“A great company is defined by the fact that it is not compared to its peers.” Phil Purcell, Morgan Stanley

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

Rules of “Radical Marketing” Love + Respect Your Customers Rules of “Radical Marketing” Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

V. NEW BUSINESS. NEW WORK.

10. Toward Work that Matters: The WOW Project.

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

Language matters! Wow! BHAG! “Takes your breath away!”

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

Your Current Project. 1. Another day’s work/Pays the rent. 4. Of value Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

Measures WOW! Beauty! Raving Fans! Impact!

Language matters!

“We shape our buildings. Thereafter they shape us.”—WSC

“We shape our words. Thereafter they shape us.”—TJP

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

11. WOW Projects for the “Powerless”: A Surefire Recipe.

Topic: Boss-free Implementation of STM /Stuff That MATTERS! Implementing offbeat stuff … that matters … is the whole point! And there is a proven – if unconventional route – I believe. Basic premise: Avoid “selling up” like the plague! No surprise: If you are selling revolution … don’t bet the farm on getting the support of the current establishment.

World’s Biggest Waste … Selling “Up” Yes it is! BIGGEST WASTE! People – bosses especially – are not impressed by intellectual arguments, from 26-year-olds or 46-year-olds. [Particularly when it comes to revolutionary – nonestablishment – ideas.] THEY ARE IMPRESSED BY RESULTS! So forget the “perfect” presentation, long labored over. Hey, forget the boss. Instead …

THE IDEA: Model F4 Find a Fellow Freak Faraway Topic #1: THE MAIN IDEA. You need at first a [one!!!!] buddy who shares your peculiar passion … and who will play with you. [Play = Big Word. Much more later.]

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

And … K2KK. S2SS. Kook to Kooky Kustomer And … K2KK* S2SS** *Kook to Kooky Kustomer **Skunk to Scintillating Supplier Rad/Kewl Dudes need not be confined to “our house.” I listened to an internal talk by the Director of Research at a GIANT company recently. You’d think these guys could do as they please. Not so! Big Companies’ customers tend to be … BIG … AND … THENCE … CONSERVATIVE. This fellow has a radical plan for a new-product portfolio. And he figures the only way he could ever sell it to the “Big [Customer] Guys” is to brilliantly demo it with some modest-sized Pioneer Customers. Hence his Relentless Pursuit of Partner Kook Kustomers. I call this K2K Redux. That is, the Kook 2 Kook idea expanded to encompass customers and/or suppliers, “outsiders” who want to be Playmates and Soulmates in Pursuit of Earthshaking Concepts. [How about “K2KK” … Kook 2 Kook Kustomers?] Again: Such partners will rarely come from Established Giants. [Not Fair! Look closely … and you may find FFs – Fellow Freaks – in odd nooks and crannies of the most conservative firms.]

BOTTOM LINE The Enemy! Implementation is a Soft Art! I.e.: It’s all about people. [Duh!]

Joe J. Jones 1942 – 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM! Tragedy! [Doesn’t remind you of Churchill or Gandhi or Betty Friedan, does it?]

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

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

12. Boss Work: Demos, Heroes, Stories … Or: Starting a WOW Projects Epidemic.

Premise: “Ordering” Systemic Change is a Stupid Waste of Time!

Demos! Heroes! Stories!

Leapfrog Group: “Lead Frogs”

Demo = Story “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner, Leading Minds: An Anatomy of Leadership

MBSA!* *Managing By Story-ing Around/David Armstrong

“Some people look for things that went wrong and try to fix them “Some people look for things that went wrong and try to fix them. I look for things that went right and try to build on them.” —Bob Stone/ Mr.Rego/ Lessons from an Uncivil Servant

REAL Org Change: Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors/ Support Groups/ End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant

VI. NEW BUSINESS. NEW YOU.

13. Re-inventing the Individual: Brand You/ You Inc 13. Re-inventing the Individual: Brand You/ You Inc./ Free Agent Nation (Or Else.)

“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

“What strategic motto will dominate this transition from nation-state to market-state? If the slogan that animated the liberal, parliamentary nation-states was ‘make the world safe for democracy,’ what will the forthcoming motto be? Perhaps ‘making the world available,’ which is to say creating new worlds of choice and protecting the autonomy of persons to choose.” —Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

“In a global economy, the government cannot give anybody a guaranteed success story, but you can give people the tools to make the most of their own lives.” —WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

New World of Work < 1 in 10 F500 #1: Manpower Inc. Freelancers/I. C New World of Work < 1 in 10 F500 #1: Manpower Inc. Freelancers/I.C.: 16M-25M Temps: 3M (incl. CEOs & lawyers) Microbusinesses: 12M-27M Total: 31M-55M Source: Daniel Pink, Free Agent Nation

Minimum New Work SurvivalSkillsKit2002 Mastery Rolodex Obsession (vert Minimum New Work SurvivalSkillsKit2002 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal

Sam’s Secret #1!

Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal

“My ancestors were printers in Amsterdam from 1510 or so until 1750, and during that entire time they didn’t have to learn anything new.” Peter Drucker, Business 2.0 (08.22.00)

“Knowledge becomes obsolete incredibly fast “Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” Peter Drucker, Business 2.0 (22August2000)

26.3

3 Weeks in May “Training” & Prep: 187 “Work”: 41 (“Other”: 17)

1% vs. 367%

Divas do it. Violinists do it. Sprinters do it. Golfers do it Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why don’t businesspeople do it?

Edward Jones’ Training Machine Edward Jones’ Training Machine* 146 hours/employee/year New hires: 4X avg. 3.8% of payroll * #1, “The 100 Best Companies To Work For”/Fortune/01.2003

Invent. Reinvent. Repeat. Source: HP banner ad

“You are the storyteller of your own life, and you can create your own legend or not.” Isabel Allende

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

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

THE I work for a company called Me STREET JOURNAL Adventures in Capitalism

THE rise up and flee your cubicle STREET JOURNAL Adventures in Capitalism

Bill Parcells’ World/ Brand You World. BLAME NOBODY. EXPECT NOTHING Bill Parcells’ World/ Brand You World! BLAME NOBODY! EXPECT NOTHING! DO SOMETHING! NY Post (9/99)

14. Boss Job One: The Talent Obsession.

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

“Seller’s Market”: Tomorrow’s Headline “Seller’s Market”: Tomorrow’s Headline* “Molecular biologists are up 3 points, economists down 1/4, in moderate trading” *futureWEALTH, Stan Davis and Christopher Meyer

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

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

Brand = Talent.* *Duh.

The Talent Ten

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

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

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

PARC’s Bob Taylor: “Connoisseur of Talent”

Les Wexner: From sweaters to people!

2. Greatness Only The Best!

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

3. Performance Up or out!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent

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

4. Pay Fork Over!

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

5. Youth Grovel Before the Young!

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

8 Minutes. —Dr. Sugata Mira, NIIT/ New Delhi/ 1999 8 Minutes* —Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then there’s oya yubi sedai, the “thumb generation”

6. Diversity Mess Rules!

“Where do good new ideas come from. That’s simple. From differences “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

CM Prof Richard Florida on “Creative Capital”: “You cannot get a technologically innovative place unless it’s open to weirdness, eccentricity and difference.” Source: New York Times/06.01.2002

7. Women Born to Lead!

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

The New Economy … Shout goodbye to “command and control” The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!

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

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

“Investors are looking more and more for a relationship with their financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men.” Hardwick Simmons, CEO, Prudential Securities

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

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

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

“Would Congress [the Boardroom] be a different place if half the members were women?” From Sex and Power, Susan Estrich

Norwegian Law: Boards must have at least 40% women.

8. Weird The Cracked Ones Let in the Light!

The Cracked Ones Let in the Light “Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.” David Ogilvy

“A great idea always comes from one person’s mind, someone who is, by definition, local. If you place 10 people in Brussels to conceive a European [ad/marketing] campaign, you’ll get nothing.” Source: Jean-Marie Dru, Disruption

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

9. Opportunity Make It an Adventure!

“H.R.” to “H.E.D.” ??? Human Enablement Department

Talent Department

People Department Center for Talent Excellence Seriously Cool People Who Recruit & Develop Seriously Cool People Etc.

thus be in charge of his or her own career.” “Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” Tim Hall et al., “The New Protean Career Contract”

10. Leading Genius We are all unique!

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

48 Players = 48 Projects = 48 different success measures.

MantraM3 Talent = Brand

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

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

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

Addenda: A Word about Education

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

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

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

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

VII. NEW BUSINESS: (NEW) BRAND INSIDE RULES

Message2002 … BI > BO

Brand Inside Rules! “I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” —Lou Gerstner, Who Says Elephants Can’t Dance?

Brand Inside Rules! “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard.” —Lou Gerstner, Who Says Elephants Can’t Dance?

15. THINK WEIRD … the HVA/ High Value Added Bedrock.

THINK WEIRD: The High Standard Deviation Enterprise.

“We are crazy. We should do something when people say it is ‘crazy “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

The Cortez Strategy!

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

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

“If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College Strong language, no?

“These days, you can’t succeed as a company if you’re consumer led – because in a world so full of so much constant change, consumers can’t anticipate the next big thing. Companies should be idea-led and consumer-informed.” Doug Atkin, partner, Merkley Newman Harty Lead. Or die!

“Generally, disruptive technologies underperform established established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value.” Clayton Christensen, The Innovator’s Dilemma

W.I.W? 20 of 26 7 of top 10*

*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 categories. (The “billion-dollar” problem.) Source: Advertising Age 01.21.2002/BofA Securities

Primary Obstacles to “Marketing-driven Change” 1. Fear of “cannibalism Primary Obstacles to “Marketing-driven Change” 1. Fear of “cannibalism.” 2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.” 3.Creating “sustainable advantage.” Source: John-Marie Dru, Disruption

Account planning has become “focus group balloting.” —Lee Clow

“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition.” Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

Ways to Raise a Purple Cow Think small Ways to Raise a Purple Cow Think small. One vestige of the TV-industrial complex is a need to think mass. If it doesn’t appeal to everyone, the thinking goes, it’s not worth it. Think of the smallest conceivable market—and describe a product that overwhelms it with remarkability. Go from there. Source: Seth Godin, Fast Company (02.2003)

“HAVE MBAs KILLED OFF MARKETING “HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is Marketing Not Working?”

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

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

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

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

WE BECOME WHO WE HANG WITH!

Big Idea/s V.C. GM Portfolio Roster

WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation

Advice to Corporate Leaders: “Consider the metaphor of the windmill: You can harness raw power but you can’t control it. … Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. … Hire a corporate anthropologist to analyze how tolerant your organization is of deviants and other innovators. … Once the anthropologist leaves, hire a shaman to drive out the evil spirits of conformity. …” Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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

VIII. NEW BUSINESS. NEW MARKETS.

16. Trends I: Women Roar.

Women & the Marketspace.

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

2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

Yeow! 1970 … 1% 2002 … 50%

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

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

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

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.”

“Men seem like loose cannons “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!)

“Shopping: A Guy’s Nightmare or a Girl’s Dream Come True “Shopping: A Guy’s Nightmare or a Girl’s Dream Come True?” “Buy it and be gone” vs. “Hang out and enjoy the experience” Source: The Charleston [WV] Gazette/06.22.2002

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

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

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

“Resting” State: 30%, 90%: “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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

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

“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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

[“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female friends. When days go by without that connection, I feel like a radio playing in an empty room.” Anna Quindlen]

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

Storytelling: Men start with the headline. Women start with the context. Source: Martha Barletta, Marketing to Women

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

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

“The ‘Connection Proclivity’ in women starts early “The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution

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

Lowe’s … Gets it. 1989: 13%/“lumber shop” … 2002: >50%

“War has broken out over your home-improvement dollar, and Lowe’s has superpower Home Depot on the defensive. It’s not-so-secret ploy: Lure women.” —Forbes.com

“Home Depot is still very much a guy’s chain “Home Depot is still very much a guy’s chain. But women, according to Lowe’s research, initiate 80 percent of all home-improvement purchase decisions, especially the big ticket orders like kitchen cabinets, flooring and bathrooms. ‘We focused on a customer nobody in home improvement has focused on. Don’t get me wrong, but women are far more discriminating than men,’ says CEO Robert Tillman, 59, a Lowe’s lifer.” —Forbes.com

“Mattel Sees Untapped Market for Blocks: Little Girls”—Headline, WSJ/04.06.02 “Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello—with interconnecting plastic squares, balls, triangles, squiggles, flowers and sticks, in pastel colors and with rounded corners—will go beyond Lego’s linear play patterns.”

Not! “Year of the Woman”

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

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

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

Ad from Furniture /Today (04. 01): “MEET WITH THE EXPERTS Ad from Furniture /Today (04.01): “MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way” Presenting Experts: M = 16; F = ?? (94% = 272)

“Please … just one couch or chair where my feet hit the ground “Please … just one couch or chair where my feet hit the ground!” —Owner, 5 furniture stores, UK

Stupid!

Stupid: “Amazing, now that I think about it Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors, engineers, bankers--sitting around designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

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

Notes to the CEO --Women are not a “niche”; so get this out of the “Specialty Markets” group. --The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.) --If you “dip your toes in the water,” what makes you think you’ll get splashy results? --Bust through the walls of the corporate silos. --Once you get her, don’t let her slip away. --Women ARE the long run! Source: Martha Barletta, Marketing to Women

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

17. Trends II: Boomer Bonanza/ Godzilla Geezer.

Subject: Marketers & Stupidity “It’s 18-44, stupid!”

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

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

Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

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

“The Latest Golden –years Trend: Going Back to College” —Headline, Newsweek/06.10.02

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

“Advertisers pay more to reach the kid because they think that once someone hits middle age he’s too set in his ways to be susceptible to advertising. … In fact this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of youth.”—James Surowiecki (The New Yorker/04.01.2002)

Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher, American Demographics

“Households headed by someone 40 or older enjoy 91% ($9 “Households headed by someone 40 or older enjoy 91% ($9.7T) of our population’s net worth. … The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“While the average American age 12 or older watched at least five movies per year in a theater, those 40 and older were the most frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Women 65 and older spent $14 “Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market?” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Take the Road Less Traveled”—Advertising Age headline re Sony, upon targeting “Zoomers,” the neglected 34% of its customers who are age 50+

“ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.” Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

No: “Target Marketing” Yes: “Target Innovation” & “Target Delivery Systems”

IX. NEW BUSINESS. NEW LEADERSHIP.

18. The Passion Imperative: The Leadership50

The Basic Premise.

1. Leadership Is a … Mutual Discovery Process.

“I don’t know.”

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

The Leadership Types.

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

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

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

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

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

I.P.M. (Inspired Profit Mechanic)

5. All Organizations Need the Golden Leadership Triangle.

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

6. Leadership Mantra #1: IT ALL DEPENDS!

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

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

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

The Leadership Dance.

8. Leaders … SHOW UP!

“The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.” —John Keegan, The Mask of Command

9. Leaders … LOVE the MESS!

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

10. Leaders DO!

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

11. Leaders Re-do.

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

“If it works, it’s obsolete.” —Marshall McLuhan

12. BUT … Leaders Know When to Wait.

Tex Schramm: The “too hard” box!

13. Leaders Are … Optimists.

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

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

14. Leaders … DELIVER!

“Leaders don’t ‘want to’ win. Leaders ‘need to’ win.” #49

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

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

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

The “Gus Imperative”!

16. Leaders FOCUS!

“To Don’t ” List

17. Leaders … Set CLEAR DESIGN SPECS.

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

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

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

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

It’s Relationships, Stupid.

19. Leaders Trust in TRUST!

Credibility!

If It Ain’t Broke … Break It.

20. Leaders … FORGET!/ Leaders … DESTROY!

Cortez!

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

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

“Damned If You Do, Damned If You Don’t, Just Plain Damned “Damned If You Do, Damned If You Don’t, Just Plain Damned.” Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

22. Leaders … HONOR THE USURPERS.

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

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

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

“No matter. Try again. Fail again. Fail better.” —Samuel Beckett

“Success is the ability to go from failure to failure without losing your enthusiasm.” Winston Churchill (as quoted by John Peterman)

24. Leaders Make … BIG MISTAKES!

“Reward excellent failures. Punish mediocre successes “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack)

Create.

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

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

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

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

Legacy!

CEO Assignment2002 (Bermuda): “Please leap forward to 2007, 2012, or 2022, and write a business history of Bermuda. What will have been said about your company during your tenure?”

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

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

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

28. Leaders LOVE the New Technology!

100 square feet

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

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

Talent.

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

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

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

MantraM3 Talent = Brand

32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.

“Diversity defines the health and wealth of nations in a new century “Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

Passion.

33. Leaders … Out Their PASSION!

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

!

34. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM!

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

35. Leaders Are … in a Hurry

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

The “Job” of Leading.

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

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

37. Leaders LOVE “POLITICS.”

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

38. But … Leaders Also Break a Lot of China

If you’re not pissing people off, you’re not making a difference!

39. Leaders Give … RESPECT!

Sara Lawrence-Lightfoot, Respect “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 Army General Melvin Zais said it, in the most moving speech I’ve ever listened to: YOU MUST CARE. Sara Lawrence-Lightfoot’s book … RESPECT … is superb. Yet … THIS ONE THING … particularly stuck with me. You want to … MAKE A DIFFERENCE. Your ideas are wild. You buy my act: Recruit A Freak. Fine! But you … MUST CARE. Your FF [First Freak] is going out on a limb to support you. She will do so … ONLY … if you accord her your utmost respect. #1: HEY, WE’RE CHANGING THE WORLD HERE. #2: HEY, THIS STUFF IS PERSONAL … ABOUT WHO YOU AND I ARE AS HUMAN BEINGS. Please: Re-read the text of the slide.

40. Leaders Say “Thank You.”

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

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

41. Leaders Are … Curious.

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

42. Leadership Is a … Performance.

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

43. Leaders … Are The Brand

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

44. Leaders … Have a GREAT STORY!

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

Introspection.

45. Leaders … Enjoy Leading.

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

46. Leaders … KNOW THEMSELVES.

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

47. But … Leaders have MENTORS.

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

48. Leaders … Take Breaks.

Zombie! Zombie! Zombie! Zombie!

The End Game.

49. Leaders ???:

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

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

50. Leaders Know WHEN TO LEAVE!

Thank You!