Tom Peters Rollercoaster Days: Learning to … Rock & Roll! SHOPA/Chicago/

“There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case

Message 1: White Water ahead. Forever.

Part I: Brand Inside Part II: Brand Outside

Brand Inside Brand Work: The Professional Service Firm Model & The WOW Project

White Collar Revolution!

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

Message 2: Prepare for a New World of Work!

11 September 2000

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

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

HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Etc. … Etc.

Textile Co. Collections. Flexible sourcing. Packaging. Merchandising. Promotion. Design. Systems & Site mgt. = Turnkey.

“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

Message 3: Head (Way) Up the V.A. Chain!

The Raw Material … The WOW Project!

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

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

Message 4: WOW Now … or Die!

Brand Inside Brand Talent: The Great War for Talent

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

“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 5: Some people are better than other people. Some people are a helluva lot better than other people.

So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager, $3-4M per year. Pay: $135,000 plus $90,000. Net: $2-3M for $50K. Source: Ed Michaels et al., The War for Talent, re Georgia-PacificEd Michaels

Message 6: What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more.

Brand Inside Reprise: THINK WEIRD: The High Standard Deviation Enterprise

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

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

Message 7: Are You (& Yours) Weird Enough?

Part I: Brand Inside Part II: Brand Outside

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

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

Message 8: Same-same Kills!

Brand Outside Strategy 1 : Use E-Commerce to Re-invent Everything!

Cisco! 90% of $20B (=$50M/day) Annual savings in service and support from customer self-management: $550M

Dell’s OptiPlex Facility Big Job: 6 to 8 hours. (20,000 per day) Parts Inventory: 2 hours, 100 square feet. (Overall, 5 days vs. 50 to 90 days; target is 2.5 days)

WebWorld = Everything Web as a way to run your business’ 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

Message 9: Survivors will move all their operations to the Web. Now. Web = Encompassing … or else.

Message 10/ Message 2001: Only idiots pull in their [investment] horns during a downturn.

Brand Outside Strategy 2 : Global is for Everyone!

THE SIX “RULES”

Rule #1 There’s no such thing as “too small to be global.”

Rule #2 If “it” is [truly] good … then it’s good enough for … THE WORLD.

Rule #3 Glom onto a [modest-sized] partner … who loves/ “gets” you!

Rule #4 Tailor!! [But don’t give away the store.]

Rule #5 Phil Crosby notwithstanding, you’ll not [likely] “get it right the first time”!

Message 11 & Rule # 6: When? Now.

Brand Outside Strategy 3 : Design Matters!

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

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

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I GET MAD. MAD.

Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!

Design is never neutral.

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

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

Message 12: Design matters. Design is a State of Mind!

Brand Outside Strategy 4 : It’s the Experience!

“ 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

“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

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

1940: Cake from flour, sugar (raw materials economy): $ : Cake from Cake mix (goods economy): $ : Bakery-made cake (service economy): $ : Chuck E. Cheese (experience economy) $100.00

Message 13: “Experience” is the “Last 80%”

HP Revisited PWC Consultants lead Business Re-invention Process (“Experience Economy”) Fabulous Customer Service (“Service Economy”) Terrific Servers (“Goods Economy”)

Brand Outside Strategy 4A: A Case in Point: The Four Seasons Chicago

Why I Stay at the Four Seasons Chicago Comfort. (“It’s good to be home.”)

Why I Stay at the Four Seasons Chicago The doorman. (Recognizes me.)

Why I Stay at the Four Seasons Chicago The fact that the GM always puts his desk chair in my room when I’m in town.

Why I Stay at the Four Seasons Chicago The flashlight with the tape that says “Tom Peters’ Flashlight”

Why I Stay at the Four Seasons Chicago The bottle of Chalone chardonnay they leave for me. (They “remember.”)

Why I Stay at the Four Seasons Chicago No hairs in the bathtub. (Operational excellence.)

Why I Stay at the Four Seasons Chicago The Brand. (I trust Izzy.)

Message 14: High tech is cool. So is High Touch!

Brand Outside Strategy 5 : BRAND POWER!

“WHO ARE YOU [these days] ?” TP to Client

“Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voila, 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, A Unique Moment Jesper Kunde

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 MaineTom’s of Maine

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

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

“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which we are UNIQUE … to our Clients. (3) Who are THEY (competitors) ? (ID, 25 words.) (4) List 3 distinct “us”/”them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada: Try ’em on a skeptical Client!

“WHO ARE WE?”

WHAT’S OUR STORY?

“EXACTLY HOW ARE WE DRAMATICLY DIFFERENT?”

“ WHY DOES IT MATTER TO THE CLIENT?”

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

Message 15: “WHO ARE WE?”