Tom Peters SeminarM3 Rollercoaster Days: Learning to … Rock & Roll! Prudential Retirement Services Phoenix /

“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

“In 25 years, you’ll probably be able to get the sum total of all human knowledge on a personal device.” Greg Blonder, VC [was Chief Technical Adviser for Corporate AT&T] [Barron’s ]

Ray Kurzweil, The Singularity* Is Near (Reported in “GIGATRENDS,” Wired 04.01) *Singularity: Rate of change becomes infinite

Everything has changed: E.g., profits & cash flow matter in valuing a stock; the I’net & B’tech revolutions haven’t nullified the business cycle; people are resilient. Nothing has changed: E.g., 25 years of whitewater ahead; there is a New Economy; the Internet will change EVERYTHING; there are many revolutions to come … hence many unforeseen winners & many unforeseen losers; Duke has a good basketball team; don’t short Krispy Kreme.

“The Internet is not going away – but flawed business models are.” fool.comfool.com

Structure Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Work I The Destruction Imperative!

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

The [New] G e Way DYB.com

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

Brand Inside Brand Org: Lean, Linked, Electronic & Malleable

Headline: “Bank of America to Cut … 10,000 Jobs” “Middle-level and senior managers are expected to be the principal targets of the job cutbacks.” Source: The New York Times ( )

White Collar Revolution!

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

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

Chicago November 1999: HRMAC

“support function” / “cost center” / “bureaucratic drag” or …

Are you “Rock Stars of the Age of Talent”

The Raw Material … The WOW Project!

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

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

Brand Inside Brand You: Distinct … or Extinct

2010 “Demographics”: By 2010, full-time workers will be in the minority Source: MIT study (28August2000)

“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

Minimum New Work SurvivalSkillsKit2000 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Finishing Skills Entrepreneurial Instinct CEO/Leader/Businessperson Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal

Message: Distinct … or Extinct.

Brand You, Big Time! I AM AN ARMY OF ONE

Brand Inside Brand Talent: The Great War for Talent

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

“We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, COO, Enron

From “1, 2 or 3” [JW] to … “ Best talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent ( )

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

“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 ( )

“We value engineers like professional athletes. We value great people at 10 times an average person in their function.” Jerry Yang, YahooYahoo

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 Pacific

What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more.

“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

“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

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

Axiom: Never hire anyone without an aberration in their background!

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

Women and new- economy management …

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

Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic

“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

“Boys are trained in a way that will make them irrelevant.” Phil Slater

It’s Girls, Stupid! 1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in high-level math and science courses More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbers Boys do rule: crime, alcohol, drugs, failure to do homework (4:1) Source: The Atlantic Monthly (May2000)

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

“H.R.” to “H.E.D.” ??? H uman E nablement D epartment

“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”

MantraM3 Talent = Brand

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 [EVP = “The company’s fingerprint” = B.P.] Source: Ed Michaels et al., The War for TalentEd Michaels

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

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

Button-down Org H.S.D.E.. Acquire for market share Suck up to biggest customers Pursue “strategic vendors” Bigger is better Accept assignments as given Hire 4.0s from “top schools” Promote when they’ve “paid their dues” Appoint a “prestigious” board Hang out with my pals R.A.F. Be “professional” at all times/Honor thine elders Acquire for innovation Partner with cool customers Seek out pioneering vendors Break it up … to refresh Reframe all tasks to innovate Hire “intriguing,” wherever Promote tomorrow if the work product is weird and WOW Appoint an interesting, headstrong board Take a freak to lunch today F.F.F. Stay loose, stay cool/The hell with thine elders

Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.]

N.W.O.: Was Is Is Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (“Failures are for fools.”) I love “Yes men” Self-contained Seat 9B, UA233 Address: Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Work II The Commodity Trap

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

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

“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

“Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, A Unique Moment Jesper Kunde

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

Tomorrow Today: Cisco! 90% of $20B (=$50M/day) 75% mfg. outsourced; 50% of orders routed to supplier who ships direct Gross margin: 65%; Net margin: 28% Annual savings in service and support from customer self-management: $550M

Tomorrow Today: Cisco! 90% of $20B; save $550M C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

Welcome to D.I.Y. Nation! “Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves.” Ray Lane, Oracle

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

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

SWA Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t believe they’re done) 30% of revenues directly from site (vs. 6% for others) Source: Business Week (09.00)

“One cannot be tentative about this. Excuses like ‘channel conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24 months ago.” Jack Welch [07.00/Forbes.com]

“We’ve put the word out to all of our suppliers: by the end of the year [2000] we’ll only do purchasing over the Internet.” John Paterson, C.P.O., IBM [$50B from 18,000 suppliers]

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

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.

“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

“There is 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 imagined before!

Brand Outside Strategy 1A : Healthcare et al.: Embracing an e-Led Age of Self-Determination

“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 Nordstrom and Jonas Ridderstrale, Funky Business

The control revolution. The potentially monumental shift in control from institutions to individuals made possible by new technology such as the Internet. Source: Introduction, The Control Revolution, Andrew Shapiro

??????? Impact #1: Healthcare

“It may be the most far-reaching evolution of them all: the metamorphosis of passive patient into consumer – and well-informed, assertive consumer at that. The defining axiom of traditional medicine – ‘doctor’s orders’ is being turned on its head. These days it’s the patients who are armed, the doctors who must get wired to keep nimble.” “E-health is the new house call.” Richard Firstman, “Heal Thyself,” On Magazine (04.01)

“We’re in the Internet age, and the average patient can’t their doctor.” Donald Berwick, Harvard Med School

THE FUTURE: Patients Rule! Control Over Aging! [M&F Cosmetic Surgery, Viagra] Targeted Therapies = High Expectations The Internet! [meds, expert consultation, info- knowledge incl. outcome data & own recs, interaction with peers & docs, awareness that experts aren’t] Alt Therapies! [more visits, some insurer recognition] Awareness [medicine as front-page news, ads] Boomers! [#s, $$$, Ethos of self-control] Prevention/Wellness HMO [no-choice] Revolt “Age of Talent” [Be nice, boss!] Speed! [surgicenters, out-patient, self-admin regimens]

Sooooo … Is your strategy centered around customer-client empowerment & self- determination? Hint: This means letting go of traditional sources of power!

Brand Outside Strategy 2 : Women Rule!

????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80%

???? 80+%

Riding Lawnmowers

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

Women … 50+% (!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week; Jupiter Communications

$4.8T > Japan 9M/27.5M/$3.6T > Germany

Yeow! 1970 … 1% 2002 … 50%

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

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.”Popcorn

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

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

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. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution

“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 Judy Rosener

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

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

Not!! “Year of the Woman”

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?”

Psssst! Wanna see my “porn” collection?

27 March 2000: to TP from Shelley Rae Norbeck “I make 1/3 rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

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 Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters

“If we are single, they say we couldn’t catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. If we are widowed, they say we killed him.” Kathleen Brown, on the joys of female political candidacy

Brand Outside Strategy 3 : BRAND POWER!

“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

“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

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

“Brand Promise” Exercise: (1) Who Are WE? (1 page, 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!

Message: Branding is personal. Branding is integrity. Branding is consistency. Branding is fresh. Branding is what I care about and why it matters. Branding is the answer to WHO ARE WE AND WHY ARE WE HERE. Branding can’t be faked. Branding is a systemic, 24/7, all departments, all hands affair.

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Brand Leadership Passion Rules!

“Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1: Charles Schwab)

Brand Leadership: ENTHUSIASM RULES! Ben Zander: “ I am a dispenser of enthusiasm.”

Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]