CCUSAF Leadership Conference Las Vegas Day 58 of the New Millennium

Hen 37,000 feet …

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

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

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)

“It means nothing less than the total reinvention of this company.”

Jacques’ New New Ford Ford + Microsoft Ford + Yahoo! Ford + Oracle Ford + HP Etc. Etc.

“There is probably going to be more confusion in the business world in the next decade than there has been in any decade in history.” Steve Case (2-00)

Tom Friedman on Bob Rubin* No phone on his desk. Why? No one to call! *NGA address/CSPAN/

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

S.A.V.

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

Seminar Y2K Brand Everything : Distinct or Extinct!

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

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

C.E.O. to C.D.O.

“Steve Ross had a wonderful philosophy: People get fired for not making mistakes.” Bob Pittman

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

Paradox Redux Atlanta: +113,600 = #1 metro area Layoffs [major]: BellSouth, Lockheed, Coca-Cola

Brand Inside Brand Org!

Brand Outside = Brand Inside

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

And Now the Equivalent … White Collar Revolution!

Why are there no books on how to create a “Cool, Rocking, WOW-producing Finance Department”?

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

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

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

[ Words to Live By … “Hierarchy is an organization with its face toward the CEO and its ass toward the customer.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business]

Brand Inside Brand Work!

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

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

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

Kaiser:

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

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

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

Characteristics of the “Also Rans” “minimize risk” “respect the chain of command” “support the boss” “make budget” Source: Fortune on “most admired global corporations” (10/26/98)

Brand Inside Brand You!

DISTINCT … OR EXTINCT! “If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.” Michael Goldhaber, Wired

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

Personal “Brand Equity” Evaluation –I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing]. –My current Project is challenging me … –New things I’ve learned in the last 90 days include … –My public “recognition program” consists of … –Additions to my Rolodex include … –My resume is discernibly different from last year’s at this time …

R.D.A. Rate: 15%?, 25%? Therefore: Formal “Investment Strategy”/ R.I.P.

“When was the last time you asked, ‘What do I want to be?’ ” Sara Ann Friedman, Work Matters

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

Brand Inside Brand Talent!

Issue Y2K The Great War for Talent!

“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

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

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

The NAESP …

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

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

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

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

Talent = Brand

Brand Outside Context: No “Commodities”!

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

“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 Nordstrom and Jonas Ridderstrale, Funky Business

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

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

Driver: In Search of Excellence (’82) to The Circle of Innovation (’97) A proliferation of [good/niche] products and [good/niche] competitors Changing tastes and preferences challenge the leaders [from GM to P&G to Pfizer to Nations Bank to IBM to HP to … Coca-Cola]

[ E.g. … Rapidly aging population! Health fanaticism! Environmental concerns! Freaky independence! Women rule! ]

“leader of the beverage sector [300 to 2,000 products/ local ‘trend-setter’] as opposed to a soft drink company” Douglas N. Daft Business Week, 28 February 2000

Brand Outside Strategy 1 : Lead the Customer!

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

“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

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

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

Brand Outside Strategy 2 : Master E-Commerce!

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

$35,000,000. = ???

Dell’s Web sales … daily

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

Brand Outside Strategy 3 : It’s the Experience!

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

“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

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

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

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

Rules of Radical Marketing Love + Respect Your Customers! Just Say No … to Market Research! 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)

Brand Leadership How Sweet It Is!

“There’s going to be a fundamental change in the global economy unlike anything we have had since the cavemen began bartering.” Arnold Baker, Chief Economist, Sandia National Laboratories

ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander

Ann Richards’ Dogma Show up! Know your message! PUT YOURSELF AT RISK!

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

The Cluetrain Manifesto Relax! Have a sense of humor! Find your voice and use it! Tell the truth! Don’t panic! Enjoy yourself! Be Brave! Be curious! Play more! Dream always! Listen up! Rap on!

Paradox No. 1, Circa 2000 TRUST* *Now … more than ever!

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