Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001.

Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001

“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

Facts: It could happen again. (2) It could be much, much worse (e.g., nuclear satchel charges, bio-agents). Quandaries: (1) Who is the enemy? (2) Where is the enemy? (3) How do you use “modern” weapons & forces to combat 50 hyper-fanatics armed with penknives and box cutters? (4) How did we get into this pickle? (5) Why are we so hated by some?

B, C, P, R, S know about as much as you and I know. WE ARE IN A BRAWL WITH NO RULES.

The “New War”: (1) Best offense: Pen knives. (2) Best defense: CELL PHONES!

“Our military structure today is essentially one developed and designed by Napoleon.” Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

BmC: (1) Hierarchy vs. “Network organization.” (2) NWO = “Doctrine as center of gravity”/motivation, distributed support & decision-making, “outside the military sphere.”

Read … 6 Nightmares : Real Threats in a Dangerous World and How America Can Meet Them, Anthony Lake. Lifting the Fog of War, Admiral Bill Owens

All Slides Available at … tompeters.com

More at … tompeters.com Slides from this seminar; Master Presentation, for in-depth; annotated Special Presentations [Women Rule!, Design!, etc.]. “Cool Friends” (referenced in seminar). Discussions re this stuff. Calendar of events. Note: Lavender text in this file is a link.

“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

“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 Strategy @ AT&T] [Barron’s 11.13.2000]

Pentium III 800MHz: $42,893.00/# Hermes Scarf: $1,964.29 Saving Private Ryan on DVD: $874.75 Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune (3.20.00)

“We are entering an era of no limits, with nothing to brake the cascade of human intelligence unleashed by the Information Age. The Web essentially allows all the brains on earth to communicate and share insights in real time, around the globe, all the time.” Jeffrey Young, Cisco Unauthorized

prior 900 years 1900s: 1 st 20 years > 1800s 2000: 10 years for paradigm shift 21 st century: 1000X tech change than 20 th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”) Ray Kurzweil, talk april2001

“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

CEOs appointed after 1985 are 3X more likely to be fired than CEOs appointed before 1985 Warren Bennis, MIT Sloan Management Review

Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 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

Message*: Are all CEOs bozos? Was Darwin a genius, or what? So, Boss Man, whadda you say about “risk taking” now? *And “all that” (2 of 100; 12 of 500) was in relatively placid times.

“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

“A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death.” Jim Utterback, Mastering the Dynamics of Innovation

“BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are prescribed, and experts believe genetic differences are part of the reason. The technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies – it could limit the market for some of their blockbuster products – that many of them are resisting its widespread use.” The Wall Street Journal (06.18.2001)

TP’s Times Past with MUs*: HP. Xerox. IBM. DEC. Kodak. Western Electric. * Masters of the Universe

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

Dotcoms … drew old economy companies’ attention to a new “do it all” way of getting consumers’ interest [e.g., convenience, selection, price @ amazon] Revamped business-to-business relationships, resulting in greater value, efficiency, and better service Sped up decision-making and forced older firms to be more adaptable Created new [activist] board models Changed the talent side of the equation and encouraged healthy changes in the work environment Source: Leo Higdon, president, Babson College

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

S.A.V.

“Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01

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!)

John Roth’s “Rules” [Nortel] 1. Our strategies must be tied to leading-edge customers on the attack. 2. Time cannot be sacrificed for better quality, lower cost, or even better decisions. 3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology and products our customers need. 4. Success is achieved by leading change, not waiting for it. 5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge. Source: Abridged from The Wall Street Journal (07.25.00)

“Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.” John Roth, CEO, Nortel

“The highest performing companies have well-developed systems for killing ideas their customers don’t want. As a result, these companies find it very difficult to invest adequate resources in disruptive technologies—lower margin opportunities that their customers don’t want—until they want them. And by then it’s too late.” Clayton Christensen, The Innovator’s Dilemma

“BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are prescribed, and experts believe genetic differences are part of the reason. The technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies – it could limit the market for some of their blockbuster products – that many of them are resisting its widespread use.” The Wall Street Journal (06.18.2001)

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

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

JY: Who do you fear most, big companies or start-ups? JC: I have a list with a dozen little companies I’m tracking closely. Guys who can start with a fresh sheet of paper have an enormous advantage technologically. We have to carefully integrate new capabilities into our existing product line, they don’t.” Source: Cisco Unauthorized

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22) Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser- guided munitions, and it marks a sea change for the industry. The implications for existing business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline: “minibuster.” Rob Arnold, Euro head of life sciences, PWC : “Once you start dealing with minority treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make money could be at a real advantage.”

“Pharmacogenomics could fundamentally change the nature of drug discovery and marketing, rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and money to craft a single medicine with mass-market appeal.” The Industry Standard (05.28.01)

I Believe … 1. Change will accelerate. DRAMATICALLY. 2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS. (Business … Health Care … Politics … Fundamentals of Human Interaction.) 3. OPPORTUNITIES are matchless. 4. You are either … ON THE BUS … or … OFF THE BUS. 5. THIS IS ALL GREAT FUN! I WANT TO PLAY! AND YOU?

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

TOPICS. BRAND INSIDE. Forces at Work II: The Destruction Imperative. Brand Org: Lean, Linked, Internet-driven, Virtual. Brand Work: The Professional Service Firm Model. The Heart of the V.A. Revolution: PSF Unbound. Brand You: Distinct … or Extinct. Redefining the Work Itself: The WOW Project. Brand Action: Getting Started (when You Are “Powerless). Brand Talent: The Great War for Talent. Brand Talent+: The Education Fiasco. Summary: The High Standard Deviation Enterprise.

TOPICS. BRAND OUTSIDE. Forces at Work II: The Sameness Trap. Strategy 1A: Use E- commerce to Re-invent Everything. Strategy 1B: Healthcare et al.: Embracing an e-Led Age of Self-determination. Strategy 2A: Women Rule. Strategy 2B: Welcome to “Old World.” Strategy 2C: Welcome to “Green World.” Strategy 3A: Design Matters. Strategy 3B: It’s the Experience. Strategy 3B1: A case in Point: The Four Seasons. Strategy 4: Brand Power.

TOPICS. BRAND LEADERSHIP. Passion Rules.

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

Forces @ 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

“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)

“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

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

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

Pentium III 800MHz: $42,893.00/# Cisco Engineer: $19,000.00 Hermes Scarf: $1,964.29 Saving Private Ryan on DVD: $874.75 Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune (3.20.00)

Built to Last v. Built to Flip “The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.” “Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.” Fast Company (03-00)

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]

“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

“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

“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

“The Futility of Size … “[Regarding this issue] the new process of virtualization fully asserts itself. Virtualization is the recognition that territorial size does not solve economic problems. … Economic access must become the substitute for increasing domain.” Richard Rosecrance, The Rise of the Virtual State

“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)

“The Word(s)” on Vitality: Gary Hamel “Sell By” [jettison old crap] Spin Out [support entrepreneurs] Spin In [buy young firms]

The [New] G e Way DYB.com

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

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 CompanyFast Company

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

“In Italy for thirty 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, “The Third Man”

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

Message: Destroy to Create!

Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.

Brand Inside Brand Org: Lean, Linked, Internet-driven, Virtual

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 (07.29.2000)

White Collar Revolution!

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

The Pincer 5 “Destructive” entrepreneurs/ Global Competition “White Collar Robots” THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!

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

Automation+ 75% of what we do: 40 “expert” decision rules!

IBM’s Project eLiza!

80,000?

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

“Assetless Company” John Bryan, CEO, on selling all Sara Lee’s manufacturing

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

Better Red than Dead?/ Better Dead than Red? “We will see more and more outsourcing of discovery processes.” Craig Venter

Better Red than Dead?/ Better Dead than Red? “If we completely outsourced all of our genetic analysis, we’d be held hostage by outside people.” Brian Spear, Director of Pharmacogenomics, Abbott Labs

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

“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which neighborhoods you go. The premium you pay reflects your actual driving risk.” Stan Davis & Christopher Meyer, futureWEALTH

Cisco, Dell = Brand-owning companies that sell Customer Satisfaction Source: David Schneider & Grady Means, MetaCapitalism [e.g.: Cisco owns 2 of 38 assembly plants]

Message: The W.C.R. is inevitable. Lead it. Or get swallowed by it.

Karl Marx Meets Adam Smith: Lessons from the Bush (1) Specialization-excellence. (Or death.) (2) Luck is irrelevant. (In a drought, drought specialists survive.) (3) Bigger is not necessarily better. (All hail the termites + bacteria!) (4) Efficiency matches effectiveness: no wasted motion, no bureaucratic B.S., very low “transaction costs.” (I’net does this. C.f. Dell.) (5) Hyper- interdependence. (The power resides in the network: Self-organization is the rule. I’net redux. Viral marketing. “Farm-out” is the norm.)

Brand Inside Brand Work: 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.

Credo: W.W.P.F. “WORK WORTH PAYING FOR”

New Orleans April 2000: NAPM

You are the … Rock Stars of the B2B Age!

Chicago November 1999: HRMAC

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

Are you “Rock Stars of the Age of Talent”?

“P.S.F.”: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot “Talent” (see below) “Adventurous” “culture” Proprietary Point of View (Methodology) W.W.P.F. (100%)/Outside Clients (25%++) When: Now!

BMW’s Designworks/USA: >50% from outside work

Bill of (SELECTIVE) Rights YOU HAVE THE RIGHT TO CHOOSE YOUR CLIENTS! (Wanna be-stay-get COOL … Work With Cool Clients!) (YOU ARE YOUR CLIENT LIST.) (LIFE IS TOO SHORT TO WORK WITH JERKS.) (Mass marketers: TARGET INNOVATION. E.g.: African-Americans … Hispanics … the Aging Population … Greens … Women)

Culture Change is not “Corporate.” Culture Change is not a “Program.” Culture Change does not take “Years.” Culture Change does not start “Today.” Culture Change starts Right Now! Culture Change Lives in the Moment! Culture Change is Entirely in Your Hands!

What Do I “Do” First? One Minute Excellence!* *Thomas Watson

Brand Inside The Heart of the Value Creation Revolution: PSF Unbound!

11 September 2000

09.11.2000: 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 … Delphi … Etc. … Etc.

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

“The primary strategic mission for [CEOJeffrey] Immelt is to hasten GE’s transformation from a low-margin manufacturer to a more lucrative services company that sells solutions as much as stuff.” Newsweek/09.10.2001 (Welch raised share of services revenue from 15% to 70%)

“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

GE’s New Six Sigma Approach Old view: Out of service 9 days. 4 days are transport, which is client responsibility. New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days = Client’s World. Source: Steve Kerr, VP, GE

“In GE’s world there are fewer but bigger customers, so there’s a vital need to maximize the relationship.” Newsweek/09.10.2001

“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)

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

The “&-!!+#$% in the middle”* Jim Clark on Healtheon/WebMD * ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael Lewis, The New New Thing

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

“We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm.” Jean Bellas, founder, SPACE (from SMPS Marketer)

HSI/Hudson-Smith International Mission: “serves as a vehicle for world- class athletes to receive expert training and guidance alongside special management and consultations. … Mr. Hudson strives to maximize each client’s profitability, exposure and success through a hands-on management environment.” Source: USAToday 07.05.00 p.1E

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

100% goes on the Web. Non-awesome is outsourced. Centers of Excellence are leveraged to the hilt!

“Masterful at Something” Einstein. Niche. (Service or Sector.) Community leader. Orchestrator. Source: Ellen Flynn-Heapes, Creating Wealth: Principles and Practices for Design Firms

Service-Systems Paradox: Cut & Grow Automate 75% of “commodity” service activities and/but Add value via people-intensive “strategic/systems-integration activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)

Messages: Every Dept. = PSF Or Get Outsourced/ eAutomated. Now. Do or Die!

Maybe one [or more] of your “PSFs”” becomes the tail that wags the dog called Market Cap????? [E.g.: engineering- IS-logistics-customer service]

THIS IS A BIG DEAL!

Markets to networks. Hierarchies to networks. Sellers and buyers to suppliers and users. Ownership to access. (Age of Access.) Marginalization of physical property. Weightless economy. Protean generation. Outsourcing of everything. Franchising of everything. (Business format franchising.) (Leasing DNA.) Everything is a service/platform for services delivery. (Give away the goods, charge for the services. VALUE = THE RELATIONSHIP. “Share of market” to “Share of customer.”) Every business is show business. Source: Jeremy Rifkin, The Age of Access

Problem: Everybody is going after the same space!

“The e-conomy is one of re-intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change.” Thomas Koulopoulos, Delphi Group

Brand Inside Brand You: Distinct … or Extinct

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

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

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

“New Economy changes how firms treat layoffs” Headline, USA Today (03.19.2001)

“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 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

Thriving in 24/7 (Sally Helgesen) START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of where we are. LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism. CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business. WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking people up.”

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

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

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

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

“The time seems appropriate to rethink the notions of self and identity in this rapidly changing age …” Tara Lemmey, Project LENS, past president Electronic Frontier Foundation

America[ns] The … Beautiful Re-inventors Ben F. Ralph W.E. Dale C. N.V.P. Werner E./EST “Tony R.”/“Coals Dude” Stephen

“No prudent man dared to be too certain of exactly who he was. Everyone had to be prepared to become someone else. To be ready for such perilous transmigrations was to become an American.” Daniel Boorstin

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

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

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

[“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)]

“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

“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)

T/D > 1.0

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

1% vs. 367%

T/D > 1.0

1% (0.01) vs. 367% (3.67)

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 [very much]?

Conclusion: “We” are not serious!

Invent. Reinvent. Repeat. Source: HP banner ad

Message: Distinct … or Extinct.

In Store: International Equality, Intranational Inequality “The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20 th century.” James Davidson & William Rees-Mogg, The Sovereign Individual

Work-Life Balance Madeleine McGrath & the Suicide Hotline

Great Great Granddad: Pushes the plow. Great Granddad: Horse now walks ahead of the plow. Granddad: Farm Hand to Factory Factotum. Dad: Factory Factotum to White Collar Cubicle Slave. And You: V.A. Player (“Brand You”) … or else!

Brand Inside Redefining the Work Itself: The WOW Project

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

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

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!)

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

Words: WOW! Insanely great! BHAG (Big Hairy Audacious Goal). Make Something Great. Astonish Me. Make It Immortal.

My GOAL: Radicalize Audiences!* *Hint: These are Radical times!

“Learn not to be careful.” Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa)

“He who fears losing his reputation is sure to lose it.” Napoleon

Message: PSF and WOW Projects are minimum W.C.R. survival strategies. (And a better way to live.)

Message/Query: Are Your Projects as “Mad” as the Mad Times Demand?

“On their deathbed, Nobody says, ‘I didn’t spend enough time at the office.’” TP: ON THEIR DEATHBED NOBODY SAYS, “WE DOUBLED MARKET SHARE.” We say, “I remember that final drive. I remember the pattern and hip fake that allowed me to snare the ball.”

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!

Brand Inside Brand Action: Getting Started … a Personal Perspective

The following slide begins the “Boss-Free Implementation of Stuff That Matters” Section. The slides in this section are heavily annotated. Use Normal or Notes Page View to access the notes.

Topic: Boss-free Implementation of STM /Stuff That MATTERS!

“This is all I ‘know’ in the world!” Tom Peters

World’s Biggest Waste … Selling “Up”

Axiom: Never waste compelling evidence on people who don’t agree with you, especially bosses. The principal purpose of such evidence is to inflame people who already agree with you – to the point that they will take hard action.

THE IDEA: Model F4 F ind a F ellow F reak F araway

Heart of the Matter 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 **Skunk to Scintillating Supplier

“I made a note. I’m going after [PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt. Things are going too well.” Sales Exec, high-tech superstar

THE NUGGET Do Something. Do Anything. Get Going. Now.

Opportunity ALWAYS Knocks VFCJ* “Strategy” *Volunteer For Crappy Jobs

Is It … “The Oh-Hell-I-Wish-It-Were- Over Memorial Day picnic” or “The First Annual S eriously K ewl C elebration of Our Incredible Staff”

Is It … Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs? Or … A stealth opportunity to address the War for Talent via … a thoroughgoing review of how safety and environmental issues contribute to making this a Great Place to Work?

Is It … Fix these bloody customer problems that have cropped up with the new 2783B? Or … A chance to work with a hotshot, young division GM on … using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the heart of the Product Design Process?

“Little”? Or: “B-I-G”? U. Of Georgia Dean: “What’s the best thing the federal government has ever done for the South?” G. McGovern: “The New Deal?” Dean: “No, school lunches.” (Attendance and test scores leaped.)

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

“ ‘Obeying the rules’ is obeying their rules. [Women] can never be powerful as long as they try to be in charge in the same way men take charge.” Harriet Rubin, The Princessa: Machiavelli for Women Harriet Rubin

THE TOOL Prototyping Mania!

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

Think about It!? Innovation = Reaction to the Prototype Michael Schrage

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

“Sony Electronics has a well- earned reputation for persistence. The company’s first entry into a new field often isn’t very good. But, as it has shown in laptops, Sony will keep trying until it gets it right.” Business Week (5/01)

“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 Seth Godin

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

“Learn not to be careful.” Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa)

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

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

He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd

THE SOFT STUFF Connect!

Message: It’s Community Organizing, stupid! See: Saul Alinsky’s Rules for Radicals

Are You … A Viral Enthusiast? A Closer?

Message to “scientists”: It AIN’T about the science. It’s NEVER about the science. It’s ALWAYS about the PASSION for the IDEA.

Fact: 1000s of PLAUSIBLE drug candidates. Winners based [mostly] on desire & tenacity of Project Manager/Team

Politics Rules!

Project Team Golden Leadership Triangle (1) Champion-Maniac. (2) Implementer-Pol. (3) Schedule & Budgets Fanatic.

“In a long and honorable career, a Ph.D. scientist in a pharmaceutical house is not likely – statistically – to experience a success.” Pharmaceutical Exec

TP: Rubbish!

“Statistically speaking,” Churchill shouldn’t have been able to fend off Hitler. “Statistically speaking,” de Gaulle shouldn’t have been able to revive the French. “Statistically speaking,” Jefferson & Adams & Hamilton shouldn’t have been able to create America.* * “Statistically speaking,” Pfizer or no Pfizer, ain’t none of us getting’ out of this alive.

I wonder …

Will one of you be awoken some December morning in Stockholm by candle-carrying kids?

SOME OF YOU IN THIS ROOM WILL BE ARCHITECTS OF A SUCCESSFUL NEW DRUG. WHY: SCIENTIFIC PROWESS, 3.7% ; PASSION & DRIVE & SALESMANSHIP & POLITICAL SAVVY, 96.3%.

Mark McCormack on Champions “profound sense of dissatisfaction” “peak at the right moment” “killer instinct”

“A real superstar is mean in a particular way. He is Michael Jordan or Cal Ripken, greedy for records and history. Armored and self-contained, his inner core is a hard knot of physical talent and fierce will. Nothing penetrates that core, and anybody or anything that gets too close is out of his life.” Michael Sokolove, “The last Straw”

“I think I’m happy. It may not seem like I’m happy on my face, but I’m also greedy. And I’m not done.” Shaq O’Neal, on why he didn’t go nuts when the Lakers finished the best NBA post-season ever

“Ace Greenberg [Bear Stearns] once said he didn’t give a hoot about job applicants’ education as long as they had ‘a deep desire to become rich.’ ” Time (06.25.01)

“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

“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ ‘You can tell that this is really Prof. C’s life.’ ” Parker Palmer, The Courage to Teach

“One student said she could not describe her good teachers because they differed so greatly, one from another. But she could describe her bad teachers because they were all the same: ‘Their words float somewhere in front of their faces, like the balloon speech in cartoons.’ ” Parker Palmer, The Courage to Teach

P.S. … Mark McCormack: 5,000 miles for a 5 min. meeting.

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

P.S.: Women are more pre- disposed to the stuff in this section. Right?

THE PROCESS Summary

Boss-free “Selling” of a WOW! Idea Get a Zany [WOW!] Idea/ Shop it with a coupla good pals. Surface [using your network] a list of [operational] folks who might be interested in playing. Call, visit and choose a coupla prospects. Engage the prospects [they must “own” “it”]. Concoct a rough plan and a prototype schedule. Move forward [Ready. Fire! Aim.]. Keep on recruitin’. Get the Test Customer to recruit some buddies for Round #2 tests [Meanwhile Customer #1 expands program]

Boss-free “Selling” of a WOW! Idea (cont.) Get going with Round #2 prototypes Start conscious “buzz building” [Let “the word” of successful tests trickle out] Have the “line dudes” put on a demo for, say, a coupla “cool” regional bosses Etc. Etc. Have the growing Network of Converts initiate a Major Program Proposal Etc. Etc.

Boss Advice I: The “Poster Kids”/ “End Run”/“Skunks” Strategy Chat up a cross-section of the Org. Develop a tentative list of Pioneers/“Skunks.” Hang with those Skunks, discover their “stuff I’ve long wanted to do”/Encourage them to “Do it!” Begin to showcase their developing results [with your public stamp of approval]. Dip deep[ish] and early - promote a Super Skunk into the [New] Establishment. Incorporate the Skunks’ work into your Vision Chatter/Welcome ALL aboard!

Boss Advice II: Starting the “Hmmmmm?” Buzz “Event Marketing”: Idea Faire/Internal “Tradeshow”/Bragfest. Or: Seminar Series, with “strange” outsiders/insiders (not the usual suspects); intense Web-based follow-up and community creation (Neighborhoods of Common Interest). “Play Fund,” around a topic of importance. Small-ish grants. Easy application process. Short-ish timeframes. (Gerstner @ American Express re AI.) “Scholarships” (not the usual suspects). Sabbatical funds (contest?). Placement on customer or supplier project teams (not the usual suspects).

Boss Advice III: The “Flypaper Strategy” Don’t try to “change the culture”! Do create fly paper which attracts Mavericks & Pirates! Let the new culture (which is already lurking around you) find you! Publicize, at the appropriate moment, the New Hall of Fame; help the New Culture Adherents create & nurture Community!

The “Flypaper/Epidemic Strategy”: Trolling for would-be Revolutionary(ies). Age & rank & size of org do not matter/passion rules (Gap’s 27-yr-old; Rajat; OSHA Maine; Anthem NH). (Hmmmm. Maybe size & rank do matter??) (“I won’t help you get promoted. I will help you start a revolution/epidemic.”) Help the infected one(s) become “carriers;” study epidemiology. MBSA.

QCC/Quick Culture Change Hire Weird Promote Deep Rule of Three (3 = Critical Mass)

The Golden Triangle: (1) Creator-Inventor- Visionary … (2) Talent Fanatic … (3) Inspired Profit Mechanic.

Project Team Golden Triangle (1) Champion-Maniac. (2) Implementer-Pol. (3) Schedule & Budgets Fanatic.

Nasser’s Triad*: The Internet Is the New Job 1 Brian Kelley, 40, head of global sales and service (GE appliances); first non-“car guy” in the job Karen Francis, 38, eBusiness czar (Olds brand boss) Marv Adams, 43, CIO (Bank One’s IT infrastructure consolidator) * All three are “direct reports”

BOTTOM LINE The Enemy!

Joe J. Jones 1942 – 2001 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

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

“It is a glory to have broken such infamous orders.” John Adams, to Congress, on ignoring his charter and negotiating successfully with the Brits for Independence, against the will of the French

“If anyone can do it, John [Rebus], you can. I’ve always had confidence in your sheer pig-headedness and inability to listen to your senior officers.” from Ian Rankin, The Falls

“In a long and honorable career, a scientist in a pharmaceutical house is not likely – statistically – to experience a success.” Big Pharma Exec

TP: Bullshit!

“Statistically speaking,” Churchill shouldn’t have been able to fend off Hitler. De Gaulle shouldn’t have been able to revive the French. King & Jefferson & Adams & Hamilton shouldn’t have been able to change/create America.* * “Statistically speaking,” Pfizer or no Pfizer, ain’t none of us getting’ out of this alive.

SOME OF YOU IN THIS ROOM WILL BE ARCHITECTS OF A SUCCESSFUL NEW DRUG. WHY: SCIENTIFIC PROWESS, 4%; PASSION & DRIVE & POLITICAL SAVVY, 96%. (Hint: World’s best “politicians”: Would-be Nobel laureates.)

Sales2001

The Sales25: Great Salespeople … 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”) 4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customer’s org. (Relationships at all levels & functions.) 7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

Politics Rules!

Great Salespeople … 8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?) 10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.)

Great Salespeople … 12. Think “Turnkey.” (It’s always your problem!) 13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.) 14. Help the customer get to know the vendor’s organization & build up their Rolodex. 15. Walk away from bad business. (Even if it gets you fired.) 16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.) 17. Think those who regularly say, “It’s all a price issue” suffer from rampant immaturity & shrunken imagination. 18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy. 20. Seek several “cool customers”—who’ll drag you into Tomorrowland.

Great Salespeople … 21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.) 22. Send thank you notes by the truckload. (NOT E- NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople in great technology companies can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple!

Brand Inside Brand Talent: The Great War for Talent

The Case

“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* “Molecular biologists are up 3 points, economists down 1/4, in moderate trading” *futureWEALTH, Stan Davis and Christopher Meyer

“Workers with good ideas, or the ability to generate ideas, can write their own ticket. We’re talking about the democratization of power.” Nathan Myhrvhold

Dick Kovacevich (Wells Fargo) on Talent “You don’t just write a memo saying people are a competitive advantage. You back that up with training, incentives and the interpersonal relationships developed over time that add up to your employees caring more about their customers than the employees of your competitors. I can’t overstate how differentiating that is, as opposed to a silver bullet about figuring out some way to segment the market.” Source: ABA Banking Journal

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

The Talent Ten

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

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 (05.17.00)

Model 24/7: Sports Franchise GM

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.

Dept. Head I = Sports G.M. Dept. Head II = V.C.

G.M. = The Recruitment and Development of Top Talent. [Period!] V.C. = Bets on “Talent.” Bets on Projects. [Period!]

2. Greatness Only The Best!

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years) Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH INITIATIVE E.g.: COO of IKEA to head international expansion Ed Michaels, War for Talent (05.17.00)

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 (05.17.00)

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)

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

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

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

5. Youth Grovel Before the Young!

“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]

“Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers.” Ed Michaels, War for Talent (05.17.00)

“Inexperience Is Bliss”/The Economist Gen e: They welcome change. They think differently. They are independent. They are entrepreneurial. They want opportunity more than money or security. They demand respect in a way young people never could before.

Enron COO: Louise Kitchen, F, 29; created EnronOnline as “Skunkworks”

6. Diversity Mess Rules!

“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

Message(s) ABB, Shell and [Damn Few] Others ELITE Global Cadre Genuinely Global BOARD

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

“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty- first-century economic community are going to need the natural talents of women.” Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World Helen Fisher

“American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one organization and one country from another will be its use of human resources. Today human resource utilization is not only a matter of social justice but a bottom-line issue.” Judy Rosener, America’s Competitive Secret Judy Rosener

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”!

“Guys want to put everybody in their hierarchical place. Like, should I have more respect for you, or are you somebody that’s south of me?” Paul Biondi, Mercer Consultants [from It’s Not Business, It’s Personal, Ronna Lichtenberg]Ronna Lichtenberg

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

Women’s Strengths: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment > top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value interpersonal & technical skills, group & individual 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

Men & women on ambiguous problem [no answer]: MEN: quickly arrive at “right answer” WOMEN: longer time, multiple options in “if, then” form Source: Judy Rosener, America’s Competitive Secret

Guys’ No. 1 Strength: Lack of thoughtfulness. TRY SOMETHING. ANYTHING. NOW.

“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)

M-F GPAs: All: 2.92M vs. 3.07F; Arts: 3.08M, 3.13F; Bus: 2.79M, 2.96F; Science/Math: 2.98M, 3.18F; Eng/CompSci: 2.96M, 3.17F. % Professional Degrees: F ’77: 19%; F ’94: 41% (45% Ph.D.s)

Read This! “Winning the Talent War for Women: Sometimes It Takes a Revolution” Douglas McCracken, HBR [11-12/2000]

“Deloitte was doing a great job of hiring high- performing women; in fact, women often earned higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male- dominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions.” Douglas McCracken, “Winning the Talent War for Women” [HBR]

“The process of assigning plum accounts was largely unexamined. … Male partners made assumptions: ‘I wouldn’t put her on that kind of company because it’s a tough manufacturing environment.’ ‘That client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ” Douglas McCracken, “Winning the Talent War for Women” [HBR]

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

S. Estrich: The Magic Number 3! [Partners, Tenured Profs, Directors]

“Women are expected to be the majority of students entering law school this fall. … The movement ultimately is expected to propel more women into leadership positions in politics and business.” Source: The New York Times, p.1, 03.26.2001; 10% of students in 1970, 49.4% in Fall 2000

“It’s time for U.S. organizations to act. No other country in the world has a comparable supply of professional women waiting to be called into action. This is America’s competitive secret.” Judy B. Rosener, America’s Competitive Secret

Sally Helgesen, Female Advantage Judy Rosener, America’s Competitive Secret Deborah Tannen, You Just Don’t Understand John Gray, Men Are from Mars, Women Are from Venus Faith Popcorn, EVEolution

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

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

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

Would Craig Venter (Luciano Benetton) come to work for us?

“I would like to think we could attract students with green hair. We will take pink and blue and orange hair, too.” Shirley Tilghman, Princeton

Axiom: Never trust a “boss” with no toys in his/her office!

“Andrew Higgins, who built landing craft in WWII, refused to hire graduates of engineering schools. He believed that they only teach you what you can’t do in engineering school. He started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ” Stephen Ambrose/Fast Company

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!

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

9. Opportunity Make It an Adventure!

“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”

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

10. Leading Genius We are all unique!

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

48 Players = 48 Projects = 48 different success measures

Why Don’t Most Biz Mgrs. Think This Way? “Coaching is winning players over.” * Phil Jackson *Not: “planning,” “implementing,” “clear communication,” “getting the org chart right.”

Insights from 80,000 managers: “People don’t change much. “Don’t waste time trying to put in what was left out. “Try to draw out what was left in. “That is hard enough.” Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

Employee retention & satisfaction: Overwhelmingly, based on their immediate manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

Managing: “The people thing” [Inspire one] [Cool!] Leading: “The vision thing” [Inspire all] [Cool!]

Goal of the Year No. 1*: Find- Develop-Mentor ONE Extraordinary Person. *CEO, large financial advisory firm, April 2001

It’s your fault!* *Sam Culbert

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!

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 Source: Ed Michaels et al., The War for Talent

“THE CHRYSLER THAT DAIMLER BOUGHT IS DEAD. The recent resignation of Thomas Gale, the great Chrysler designer, brings that home as nothing else does. This was the mistake Juergen Schrempp made when he bought Chrysler: He didn’t realize it was the people who counted, not the factories, which were old, or the sales and profits, which can come and go. The people and the leadership are the heart and spirit of the Detroit automaker and when they go, all that is left are old factories and problems.” Forbes [10.30.00]

Message: Talent rules! Women leaders rule! Talent = Brand. Become “Talent Obsessed”! Become “EVP Obsessed”!

Would Craig Venter (Luciano Benetton) come to work for us?

HR Folks: YOU – not “marketing” - “OWN” THE “BRAND PROMISE”! (If you wish.)

Titles! Manager HRIS to Manager Human Capital Assets or Manager Employee Marketing* *IHRIM.link (2-3.2001)

Obsession Greatness Performance Pay Youth Diversity Women Weird Opportunity Leading Genius

First Steps Make a list of the traits you really want to unearth. (TP & “sense of humor;” GR & jaywalking.) Promote for TDS /Talent Development Skills. Work up an EVP.

Truth 1000X more important in times of Madness!

Message 2001: I’m … Comfortable with … CHAOS. UN -Comfortable with … B.S.

Brand Inside Brand Talent+: The Education Fiasco

Losing the War to Bismarck

“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! Jordan Ayan

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass 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

“The main crisis in school today is irrelevance.” Daniel Pink, Free Agent Nation

“Schools were designed by Horace Mann, E.L. Thorndike, and others to be instruments of the scientific management of a mass population. Schools are intended to produce, through the application of formulas, formulaic human beings whose behavior can be predicted and controlled. To a very great extent, schools succeed in doing this. But in a society that is increasingly fragmented, in which the only genuinely successful people are independent, self-reliant, and individualistic, the products of school and ‘schooling’ are irrelevant.” A Different Kind of Teacher, John Taylor Gatto

“Our military structure today is essentially one developed and designed by Napoleon. We should, firstly, functionally integrate the Army, Navy, Air Force and Marines. You could eliminate half of these command structures’ vertical steps. Of course, you’d get rid of lots of generals and admirals. The military doesn’t like that.” Admiral William Owens, former Vice Chairman, Joint Chiefs of Staff

“Our education system is a second-rate, factory-style organization, pumping out obsolete information in obsolete ways. [Schools] are simply not connected to the future of the kids they’re responsible for.” Alvin Toffler, Business 2.0 (09.00)

In Need of that “White Collar Revolution”

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

Milwaukee: $6,951 per student. Central administration: $3,481. Instruction: $1,647. A Different Kind of Teacher, John Taylor Gatto (Research reported in Education Update, Fall 1990)

“The most obvious barrier between our children and the kind of education that can free their enormous potential seems to be the educational system itself: a vast, suffocating web of people, practices and presumptions, kindly in intent, ponderous in response.” George Leonard, Education and Ecstasy

An Unnatural Way to “Learn”

“The time bomb in every classroom is that students learn exactly what they are taught.” Frank Smith, Insult to Intelligence

“What [standardized tests] actually measure is the tractability of the student, and this they do quite accurately. Is it of value to know who is docile and who is not? You tell me.” John Taylor Gatto, A Different Kind of Teacher

“Schoolteachers aren’t allowed to do what they think best for each student. Harnessed to a collectivized regimen, they soon give up thinking seriously about students as one-of-a-kind individuals, regardless of what they may wish were true.” John Taylor Gatto, A Different Kind of Teacher

“The best evidence that our schools are set up to ‘school’ and not be useful educationally lies in the look of the rooms where we confine kids. Rooms with no clocks, no telephones, no fax machines, no stamps, no envelopes, no maps, no directories, no private space in which to think, no conference tables on which to confer. Rooms in which there isn’t any real way to contact the outside world where life is going on.” A Different Kind of Teacher, John Taylor Gatto

“Every time I pass a jailhouse or school, I feel sorry for the people inside.” Jimmy Breslin, 07.11.2001, on “summer school” in NYC [“If they haven’t learned in the winter, what are they going to remember from days when they should be swimming?”]

“It is absurd and anti-life to be compelled to sit in confinement with people of exactly the same age and social class. This cuts children off from the immense diversity of life and the synergy of variety. … It is absurd and anti-life to move from cell to cell at the sound of a gong every day of your natural youth in an institution that allows you no privacy. … In centuries past, children and adolescents would spend their time in real work, real charity, real adventures, and in the search for mentors who might teach them what they really wanted to learn.” A Different Kind of Teacher, John Taylor Gatto

“I discovered the brutally simple motivation behind the development and imposition of all systematic instructional programs and tests— a lack of trust that teachers can teach and that children can learn.” Frank Smith, Insult to Intelligence

“It is an inescapable reality that students learn at different rates in different ways. That creates the need for a schedule of sensitivity that only teachers close to the particular student can devise—not some theory-driven, central-office, computer-managed schedule.” Ted Sizer

Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in featureless rooms … sort children into rigid categories by the use of fantastic measures such as age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving them of private time and space … John Taylor Gatto, A Different Kind of Teacher

Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to discriminate qualities quantitatively … insist that every moment of time be filled with low- level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their active learning time to acquire.” John Taylor Gatto, A Different Kind of Teacher

“[One factor contributing to widespread teacher dissatisfaction] is the extremely shallow nature of intellectual enterprise in schools. Ideas are broken into fragments called subjects, subjects into units, units into sequences, sequences into lessons, lessons into homework, and all these prefabricated pieces make a classroom teacherproof.” John Taylor Gatto, A Different Kind of Teacher

Ted Sizer, on the “logic” of high schools: “If we spend more than a day on the Bill of Rights, we can’t get to Grover Cleveland before Valentine’s Day.”

“We interrupt classes with public address system announcements, utterly forgetting that Hamlet’s soliloquy may lose something from the interjection of information about where the cheerleaders should meet after school.” Ted Sizer

“We parade adolescents before snippets of time. Any one teacher will usually see more than 10 students and often more than 160 in a day. Such a system denies teachers the chance to know many students well, to learn how a particular student’s mind works.” Ted Sizer

“The myth is that learning can be guaranteed if instruction is delivered systematically, one small piece at a time, with frequent tests to ensure that students and teachers stay on task.” Frank Smith, Insult to Intelligence

“A substantial amount of testimony exists from highly regarded scientists like [Nobel laureate] Richard Feynman, Albert Einstein, and many others, that scientific discovery is negatively related to the procedures of school science classes.” John Taylor Gatto, A Different Kind of Teacher

Messenger: “The mind is a machine, but a virtual machine. A system of systems.” Helen: “Perhaps it isn’t a system at all.” Messenger: “”Oh, but it is. … If you’re a scientist, you have to start with that assumption.” Helen: “I suspect that’s why I dropped science at school as soon as they let me.” Messenger: “No, you dropped it, I would guess, because it was doled out to you in spoonfuls of distilled boredom.” David Lodge, Thinks …

But Are They Being Taught to Think ? From MIT & JHU: “Students who receive honor grades in college-level physics are frequently unable to solve basic problems encountered in a form slightly different from the one in which they have been formally instructed and tested.” Howard Gardner, Unschooled Minds

Higgins Knew!

“Andrew Higgins, who built landing craft in WWII, refused to hire graduates of engineering schools. He believed that they only teach you what you can’t do in engineering school. He started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ” Stephen Ambrose/Fast Company

Doing Stuff that Matters!

“Education, at best, is ecstatic. At its best, its most unfettered, the moment of learning is a moment of delight. This essential and obvious truth is demonstrated for us every day by the baby and the preschool child. … When joy is absent, the effectiveness of the learning process falls and falls until the human being is operating hesitantly, grudgingly, fearfully.” George Leonard, Education and Ecstasy [1968]

“Children learn what makes sense to them; they learn through the sense of things they want to understand.” Frank Smith, Insult to Intelligence

Per George Miller: Children as “informavores,” who “eat up new Knowledge.” Frank Smith, Insult to Intelligence

“During the first years of life, youngsters all over the world master a breathtaking array of competences with little formal tutelage.” Howard Gardner, The Unschooled Mind

“’Schooling’ takes place in an environment controlled by others. … ‘Education’ describes efforts largely self- initiated for the purpose of taking charge of your life wisely and living in a world you understand. The educated state is a complex tapestry woven of broad experience, grueling commitments, and substantial risk taking.” A Different Kind of Teacher, John Taylor Gatto

“We underrate our brains and our intelligence. Formal education has become such a complicated, self-conscious, and over-regulated activity that learning is widely regarded as something difficult that the brain would rather no do. … Such a belief is probably well-founded if the teachers are referring to their efforts to keep children moving through the instructional sequences that are prescribed as ‘learning activities’ in school. … We are all capable of huge and unsuspected learning accomplishments without effort.” Frank Smith, Insult to Intelligence

“Each of us has a design problem to solve: to create from the raw material around us the curriculum for a good life. It isn’t easy, and it isn’t the same for any two people.” John Taylor Gatto, A Different Kind of Teacher

Mary Foley, homeschooling mother of four, Cape Cod: “If we are not free to educate our children, liberty is an illusion. I do not have a curriculum. The state does not have the power to standardize children. My method has been successful enough to produce a daughter who is a member of the National Honor Society and twin sons who tested in the top one percent on a national placement test for two consecutive years. The priorities of our curriculum are daydreaming, natural and social sciences, self-discipline, respect of self and others, and making mistakes.” John Taylor Gatto, A Different Kind of Teacher

“I want to give you a yardstick, a gold standard, by which to measure good schooling. The Shelter Institute in Bath, Maine, will teach you how to build a three thousand square-foot, multi-level Cape Cod home in three weeks’ time, whatever your age. If you stay another week, it will show you how to make your own posts and beams; you’ll actually cut them out and set them up. You’ll learn wiring, plumbing, insulation, the works. Twenty thousand people have learned to build a house there for about the cost of one month’s tuition in public school.” John Taylor Gatto, A Different Kind of Teacher

“The most extraordinary result was the unanimity and conviction with which boys and girls— aged 8 to 11 —called for a broader curriculum, with much more science, history, geography, history, art, craft, woodwork, cooking, electronics, cooking and technology. They wanted, above all, more work which allowed them to think for themselves, to experiment, to engage in first-hand observation.” Frank Smith, Insult to Intelligence

“Learning is never divorced from feelings.” Frank Smith, Insult to Intelligence

The Learner’s Manifesto The brain is always learning. Learning does not require coercion. Learning must be meaningful. Learning is incidental. Learning is collaborative. The consequences of worthwhile learning are obvious. Learning always involves feelings. Learning must be free of risk. Frank Smith, Insult to Intelligence

U.C. Ed Dean Walter Karp: “From the first grade to the twelfth, from one coast to the other, instruction in America’s classrooms is almost entirely dogmatic. Answers are ‘right’ and answers are ‘wrong,’ but mostly answers are short.” Frank Smith, Insult to Intelligence

Richard Paul, Director, Center for Critical Thinking: “We need to shift the focus of learning from simply teaching students to have the ‘right answer,’ to teaching them the process by which educated people pursue right answers.” Frank Smith, Insult to Intelligence

James Coleman, 1974: “Develop in youth the capabilities for engaging in intense concentrated involvement in an activity.” Source: Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult

“While not every child will develop interests as fascinating as Darwin’s, without the enthusiasm that leads to intense, concentrated activity, a child will likely lack the perseverance needed to face the future successfully. We may not know what jobs will be available to young people ten years from now. … But to the extent that teenagers have had experiences that demand discipline, require the skillful use of mind and body, and give them a sense of responsibility and involvement with useful goals, we might expect the youth of today to be ready to face the challenges of tomorrow.” Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult

“Growing up to be a happy adult gets more and more difficult as occupational roles become more vague and ephemeral. Young people can no longer count on a predictable future and cannot expect that a set of skills learned in school will be sufficient to ensure a comfortable career. For this reason, we need to take a long look at the conditions that prepare youth for a changing, uncertain future.” Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult

Gatto’s Lab School ONE. Independent Study. A day out of the school building, chasing ONE BIG IDEA. TWO. Apprenticeship. THREE. Community Service, a day a week. FOUR. Team up with parents, yours or someone else’s, for Family Teamwork Curriculum. FIVE. Class work. Jamaal Watson, 13, from Children’s Express Quarterly; from John Taylor Gatto, A Different Kind of Teacher

Gardner’s MI7: Linguistic, Logical-mathematical, Spatial, Musical, Bodily-kinesthetic, Interpersonal, Intrapersonal.

“Actual content may not be the issue at all, since we are really trying to impart the idea that one can deal with new areas of knowledge if one knows how to learn, how to find out about what is known, and how to abandon old ideas when they are worn out. This means teaching ways of developing good questions rather than memorizing known answers, an idea that traditional schools simply don’t cotton to at all, and that traditional testing methods are unprepared to handle.” Roger Schank, The Connoisseur’s Guide to the Mind

“Apprenticeships & Projects” – Howard Gardner

EBF* to EBI** * Education By Fiat ** Education By Interest

“When they tell the story of their project, they are irresistible to admissions officers!” Dennis Littky

“If we are to configure an education for the world of tomorrow, we need to take the lessons of the museum and the relationship of the apprenticeship extremely seriously. … to think of the ways in which the strengths of a museum atmosphere, of apprenticeship learning, and of engaging in projects can pervade all educational environments.” Howard Gardner, Unschooled Minds

“Questions, questions, questions. They disturb. They provoke. They exhilarate. They intimidate. They make you feel a little bit like you’ve at least temporarily lost your marbles. So much so that at times I’m positive that the ground is shaking and shifting under our feet. Welcome to Socrates Café. Christopher Phillips, Socrates Café

Most important 3 letters: Why?

Tom’s Edu3M Manifesto* *Manifesto for Education in the 3 rd Millennium

Education3M Learning is a normal state. Children are learnavores. Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.] We learn at different rates. We learn in different ways. Boys and girls learn [very] differently. In a class of 25, there are 25 different trajectories. Learning in 40-minutes blocks is bullshit. Learning for tests is utterly insane. There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real world” standards.

Education3M We learn most/fastest/most completely when we are passionate about what we are learning and it matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/Learning by Internship. Classrooms are abnormal places. We need changes of pace. [Japanese recesses between each class.] International test scores are not correlated with hours-per-year in class. Big classes are slightly problematic. Big schools suck. Period.

Education3M “All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.] U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning. Cutting art-music budgets is truly dumb. Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.] Teachers need enough space-time-flexibility to get to know kids as individuals. Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

Education3M Our toughest “learning achievement”— mastering our native language—does not require schools, or even competent parents. [It does require a desperate need-to-know.] Great teachers are great learners, not imparters- of-knowledge. Great teachers ask great questions—that launch kids on lifelong quests. The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly sophisticated questions—just ask a ski instructor or neurosurgeon.

Education3M Most schools spend most of their time setting up contexts in which kids learn not to like particular subjects. [Evidence shows that such anti- learning sticks!] Vigorous exploration is normal … until you are incarcerated in a school. “Bite size” education-learning is neither education nor learning. Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in the hyper-structured classroom.

Education3M The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the wrong time. There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps. Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.” Schools of “education” should by and large have their charters revoked.

Education3M “Education” must “develop in youth the capabilities for engaging in intense concentrated involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.] Stability is dead; “education” must therefore “educate” for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static body of “facts.” [Was the “War of the Roses” really over roses? (1) I don’t remember. (2) Not remembering has not been a handicap.]

Education3M I never took a speech course. Hemingway couldn’t spell. Etc. Etc. Etc.

The Horror: We get it all wrong. We know how to do “it” right!

My Education: People. (Damn few.) Mrs. Landers. Mrs. Gaver. Miss Churchill. Mr. Chapin. Mr. Hooper. Prof. Liang. Prof. White. Capt. Anderson. Gene. Allen. (Warren.) (Susan.)

My “educators’ ” secrets: They made me fall in love. They helped me figure out who I was.

Lucky me: Mom, Lucy, Mabel, Shirley, Tom, Paul, Roger, Mr. Chapin, Richard, Ta, The Dutchman, The Economist, Gene, Karl, Allen, Herb, Ian, Warren, Herb, Dennis, Mike, Susan. (They are my life!)

Bringing Out the Best

Grameen Bank/Bangladesh “It’s not people who aren’t credit- worthy. It’s banks that aren’t people-worthy.” $2.3B to 2.3M [typical 1 st loan: $15.] 98% recovery rate [94% to women!] 1/3 rd out of poverty; 1/3 rd up to non- poverty threshold Muhammad Yunus, Banker to the Poor

“The Grameen loan is not simply cash. It becomes a kind of ticket to self-discovery and self-exploration.” Muhammad Yunus

Why Don’t Most Biz Mgrs. Think This Way? “Coaching is winning players over.” * Phil Jackson *Not: “planning,” “implementing,” “clear communication,” “getting the org chart right.”

Leaders-Teachers Do Not “Transform People”! Instead they (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?) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) to (5) go-create places they (and their teachers-leaders) had never dreamed existed/ they could go.

Insights from 80,000 managers: “People don’t change much. “Don’t waste time trying to put in what was left out. “Try to draw out what was left in. “That is hard enough.” Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ You can tell that this is really Prof. C’s life.’ ” Parker Palmer, The Courage to Teach

“One student said she could not describe her good teachers because they differed so greatly, one from another. But she could describe her bad teachers because they were all the same: ‘Their words float somewhere in front of their faces, like the balloon speech in cartoons.’ ” Parker Palmer, The Courage to Teach

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

Reprise: Brand Inside The White Collar Revolution & The Web [DYB.com!] PSF as Building Block [Work Worth Paying For/Source of Market Cap] Work Worth Paying For = WOW Projects! Brand You [Everybody!] The Great War for Talent! Boss-free Implementation of STM! [F2F]

“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

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

“Enormous sums of money are invested to reduce cycle time, improve quality, reengineer … Much of this money is simply wasted. The waste is due to companies’ inability to develop wide-angle vision and tap into the … power of the edge.” 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

“Why smart companies do dumb things: The standard a successful company requires for a new winning strategy is far higher than the standard anyone else would ask for.” Seth Godin, Zooming

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

“Too many companies rely on benchmarking against industry leaders. The problem is that those companies are simply catching up to what’s already been done, while the leaders are moving on to some new advantage.” David Crane, on Michael Porter’s Canadian competitiveness study, which discovered an Innovation Deficit (05.05)

“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

Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual Pioneer [Weird] Acquisitions Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index] Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.] Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway] Hire Weird [Diversity] /Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board Weed Un-weird [“One Sigma” “Talent,” etc.] Hang out with Weird [Univ. of Weird] /Lunch with Weird/ Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania] Sense of Humor [Rhapsodize Over Thine Cool Failures!] Re-enforce a “Culture of Disrespect”/PassionatePiracy

“Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.” John Roth, CEO, Nortel

“The future has already happened. It’s just not evenly distributed.” Adrian Slywotzky

“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

“I made a note. I’m going after [PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt. Things are going too well.” Sales Exec, high-tech superstar

“Generally, disruptive technologies underperform 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

Elliott Masie, on desirable eLearning vendors: “I want a ‘sandbox partner,’ someone who will openly say, ‘This is not the last word; we don’t know exactly where we’re going.’ ”

“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

The “Flypaper Strategy”: Trolling for the Weird Ones! Event Marketing: Idea Faires, Newsletters, etc. Grants & Sabbaticals/ Customer-Vendor Teams Hall of Freaky Fame MBWA: “I.D. the freaks, please.” Use colorful language in all communications Deep Dip

“But don’t we need some grout between the tiles?”

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

New Organizational World: Shifts of Emphasis Staffing Fat Thin Organization Vertical Horizontal Workforce Homogeneity Diversity Power Source Status/Command Rights Expertise/Relationships Loyalty Company Project Career Asset Organizational Capital Reputational Capital Source: “The Workforce of the Future,” IHRIM Journal (12.2000)

Enron’s secret: the Memory less Enterprise

The Cortez Strategy!

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

????? “Come up with three ‘Crazy Ideas,’ one of which might work.”

Fr Timothy Radcliffe, Master of the Dominicans, to his friars

Must Have2001: Multiple, competing, independent discovery & business models!

?????: Get better organized to do good work vs. Get better disorganized to do great work

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: Anne@Corp.com 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

Tomorrow’s Organizations: Itinerant Potential Machines

TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to ‘make their bones” in “the revolution.” Love the new technologies. Well rewarded. Don’t plan to be around 10 years from now.

TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often needed). “We aim to change the world, and we need gifted colleagues—who well may not be on our payroll.”

BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180 degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME HAS NOT-YET- COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS AND PROJECTS.

BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?” Appreciate “market creation” as much as or more than “market share growth.” ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Skilling. Case. Etc.)

ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER. Including vendors and consultants and … especially … PIONEERING CUSTOMERS—who will “pull us into the future.”

TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share this (radical) vision.

POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing things.”

“Analysts said we don’t care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see 2 or 3 years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell. They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!” Dick Kovacevich, Wells Fargo (in ABA Banking Journal)

Forces @ Work II The Sameness Trap

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

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 world is so competitive today it’s not going to let everybody do the same thing.” Dick Kovacevich, Wells Fargo (ABA Banking Journal)

“Our basic business belief is that we don’t want a parity product.” Stephen Sanger, CEO, General Mills

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)

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

“A boom in high-tech fakes is shifting into overdrive. These aren’t the old, tacky knockoffs that can be spotted a mile away, but a new breed of look-alikes born of high-tech manufacturing techniques and savvy packaging.” WSJ 02.16.01

“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

10X/10X

Message: “Similar” kills! Stomp out the Sameness Epidemic!

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

OVERVIEW

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

Oracle: Service Call Center $300.00 per transaction to $1.50 Savings: $550,000,000 Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B additional this year]

Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early 1999: 30 times a day. Late 2000: 30 times per … minute. Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s: 2 weeks, 2 per week. Late 2000: 5 such deals per day Source: www.ecompany.com (1/2001)www.ecompany.com

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)

GM/Ford/DaimlerChrysler/Renault/ Nissan/Oracle/CommerceOne Covisint (02.2000) $240B (+$500B) 90,000 Suppliers $2-3,000/Car 42 to 12-18 Months Source: Business2.0 (02.2001)

“This is the first meter of a 10-kilometer race. Eventually, all markets will come to resemble today’s foreign exchange market.” Hamid Biglari, Head of Corporate Strategy, Citigroup, in “GIGATRENDS”, Wired 04.01

X1,000,000 TowTruckNet.com

COMMUNITY SERVICES!

Secret Cisco: Community! 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)

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)

Webcor. Construction. Web site for each project. Instant info on status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage. Source: Business Week (09.00)

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

Psych 101: Strongest Force on Earth? My need to be in perceived control of my universe!

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

“The Age of the Never Satisfied Customer” Regis McKenna

“The concept of being always on, always connected, is very powerful. … Companies are going to need to reach consumers across all the different transmission media and devices – across wireless, on cell phones, into cars, onto airplanes, into cabs, into the home and TV set. … It’s not just the message – now you’ve got a connection, what do you do with that?” Marc Andreessen [Mosaic, Netscape, Loudcloud]

“HR Employee Self-Service/ ESS” John Pask/IHRIM

B2E* *Business to Employee (IHRIM.link)

“Systems supporting one-to- one employee relationships will add competitive advantage.” “Employees expect far more access and control over their own information.” Source: IHRIM.link (2-3.2001)

“Managing Benefits: Let Workers Do It” Source: Headline, Money & Medicine, New York Times (12.06.00); cited are specialist companies such as eBenX and Vivius of Minneapolis

“Human resource management (HRM) systems will begin to look more like customer relationship management (CRM) systems— where we must know as much about our people (existing and future) as we do about our customers.” “Applications in the future will be much more personalizable. Every user will have a customized way of working with their information. There will be more of a self-learning and intuitive model than we have today.” Source: IHRIM Journal (12.2000)

Message HR: Gen X thinks you’re cretins! Source: IHRIM.link (2-3.2001)

Radical Simplicity !

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

“Revenues on the Web are determined almost completely by usability.” Jakob Nielsen (The Economist 04.28.01)

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)

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

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

One Person’s Opinion [11.2000] TP to reporter: “Service is MUCH better! Would you go back to bank tellers and phone operators? Value that I place on a smile: 3 on a scale of 10. Value I place on fast “digital” response: 11 on a scale of 10!!”

RADICAL STRATEGIES REQUIRED

“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]Forbes.com

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

GE & the Web Purchasing: 2000: $6B; 2001: $15B Sales: 1999: $1B; 2000: $7B; 2001: $20B+ Source: Business 2.0 (05.01)

G e Miscellany … Polymerland: 75% to Web Appliances: $5 to 20 cents, Web vs. call Service Rep; 20 million calls per year Source: Fast Company

“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]

Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.

Translation … Bureaucracy free = Flat org, no B.S. Systemically integrated = Whole supply chain tightly wired/ friction free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever “Instantly” responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements

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

The eProcess Edge Embed processes in software (My.Yahoo, MySchwab) Outsource processes electronically (Gateway and eCredit) In-source new capabilities electronically (Fidelity’s services from outside) Handle exceptions exceptionally (Schwab) Source: The eProcess Edge, Peter Keen & Mark McDonald

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.

“E-business is the final nail in the coffin for bureaucracy at GE.” Jack Welch/ GE Annual Report 2000

“Hyperlinks subvert hierarchy!” The Cluetrain Manifesto The Cluetrain Manifesto

[ 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]

“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

“Top management has to spend time on the details. They aren’t used to being detail oriented. They have to get back to figuring out, ‘How is it we will take an order on the Internet?’ ‘How will we communicate with our suppliers, and force them to use the Internet?’ ‘What, exactly, do the business processes look like?’ ” Ray Lane, Kleiner Perkins

Magic! [Inter]networked Markets meet … [Intra]networked Workers Source: The Cluetrain Manifesto: The End of Business as Usual

“Supply Chain” 2000: “When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.” Red Herring (09.2000)

“Customer Service” is DEAD. “One-to-One” is DEAD. Welcome to: ???? [??? = We live together in seamless- responsive harmony with all Members of the Value Chain. We Create together. We Fulfill together. We Learn together. We Adjust together. All old categories – which imply separation and linearity and hierarchy and do-it-to-themism – must die.]

A DREAMER’S MEDIUM!

“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!

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

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

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

“Believe in the Internet … MORE THAN EVER.” Andy Grove, Cover quote, Wired (June 200 1 )

The Real “New Economy” “Only a few times in history have interaction costs radically changed —one was the railroads, then the telegraph and telephone. We’re going through another one right now.” Jeff Skilling, Enron

The Real “New Economy” “Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on the board stays the same but the capabilities of the pieces randomly change. Knights now move like bishops, bishops like rooks … Technology does that. It rubs out boundaries that separate industries. Suddenly new competitors with new capabilities will come at you from new directions. Lowly truckers in brown vans become geeky logistics experts. …” Business 2.0 (9-10.2001)

THIS IS A BIG DEAL!

Karl Marx Meets Adam Smith: Lessons from the Bush (1) Specialization-excellence. (Or death.) (2) Luck is irrelevant. (In a drought, drought specialists survive.) (3) Bigger is not necessarily better. (All hail the termites + bacteria!) (4) Efficiency matches effectiveness: no wasted motion, no bureaucratic B.S., very low “transaction costs.” (I’net does this. C.f. Dell.) (5) Hyper- interdependence. (The power resides in the network: Self-organization is the rule. I’net redux. Viral marketing. “Farm-out” is the norm.)

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

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

“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

“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

“Imagine a world where a citizen could search the globe to assemble ‘my government,’ the ultimate in customized, customer-centric services. Health care from the Netherlands, business incorporation in Malaysia …” Don Tapscott

“Greenspan Discovers Investors Are the Economy” Source: Headline, AOL, 01.26.01

“I’m old enough to remember when you went into a bar in the summer, they were watching a baseball game. Now, they’re watching CNBC.” Byron Wien, Chief U.S. equity strategist, Morgan Stanley Dean Witter

EBF* to EBI** * Education By Fiat ** Education By Interest

“When they tell the story of their project, they are irresistible to admissions officers!” Dennis Littky

“Greater opportunity for women is probably the most significant gain for human freedom in the last century.” Andrew Sullivan, The New Republic

Grameen Bank/Bangladesh “It’s not people who aren’t credit- worthy. It’s banks that aren’t people-worthy.” $2.3B to 2.3M [typical 1 st loan: $15.] 98% recovery rate [94% to women!] 1/3 rd out of poverty; 1/3 rd up to non- poverty threshold Muhammad Yunus, Banker to the Poor

“The Grameen loan is not simply cash. It becomes a kind of ticket to self-discovery and self-exploration.” Muhammad Yunus

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

Message: We are on the cusp of a “People’s [customer/ patient/ citizen/ etc.] Revolution.”

How Dare They! “Surfing the net is new route to college: But counselors fear that some students will pick schools with little guidance” Headline, p1A, USA Today, 10.03.00

Corporate Resistance to “It” “It all goes back to fear of losing control!” The Cluetrain Manifesto

Impact #1(?): Healthcare

HealthCare2001 Consumerism X Demographics X IS/Internet X Info Consolidators X Genetics & Devices = YIKES!

1. Consumerism (Patient- centric Healthcare)

“A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumers—raising their expectations and, in many cases, handing them the controls. [Healthcare] consumers are driving radical, fundamental change.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

“We expect consumers to move into a position of dominance in the early years of the new century.” Dean Coddington, Elizabeth Fischer, Keith Moore & Richard Clarke, Beyond Managed Care

Today’s Healthcare “Consumer”: “skeptical and demanding” Source: Ian Morrison, Healthcare in the New Millennium

“Medical care has traditionally followed a ‘professional’ model, based on two assumptions: that patients are unable to become sufficiently informed about their own care to allow them a pivotal role, and that medical judgments are based on science.” James Blumstein, Vanderbilt Law School

“He shook me up. He put his hand on my shoulder, and simply said, ‘Old friend, you have got to take charge of your own medical care.’ ” Hamilton Jordan, No Such Thing as a Bad Day (on a conversation with a doctor pal, following Jordan’s cancer diagnosis)

“If healthcare organizations don’t wake up, smell the coffee – and get online with real services, transactions, and more for these e-consumers to do – the newly empowered e-consumers will become even more disgruntled with the hornet’s nest of paperwork that plagues the system.” Douglas Goldstein, e-Healthcare

“What’s needed are comprehensive strategies that leverage the latest technology and provide the services that eHealth consumers are demanding, including convenience and customized services such as online physician interaction or online management of health benefits and customized disease management programs.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

“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)

“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention bias. Info availability (disease, health, docs, support groups, outcomes). Boomers (“I’m in charge!” Discretionary $$$$ to spend: cosmetic surgery, vision improvement, fertility, etc.). Self-care (chronic disease). High expectations (genetics, etc.) …

Consumer Imperatives Choice Control (Self-care, Self-management) Shared Medical Decision-making Customer Service Information Branding Source: Institute for the Future

“E-consumers … want knowledge are already connected want convenience want it to be all about them want control.” Douglas Goldstein, e-Healthcare

“No one currently ‘owns’ the eHealth Consumer. It’s an open playing field.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

“We find that eHealth consumers are willing to pay – and even switch health plans – for the services they most want.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

“Savior for the Sick” vs. “Partner for Good Health” Source: NPR/VPR 08.15.00

“The ‘curative model’ narrowly focuses on the goal of cure. … From many quarters comes evidence that the view of health should be expanded to encompass mental, social and spiritual well-being.” Institute for the Future

“In many ways, the nursing profession is the most qualified to respond to current changes in the health system. Nurses’ training focuses more on the behavioral and preventive aspects of health care than does that of physicians.” Institute for the Future

“A 7-year follow-up of women diagnosed with breast cancer showed that those who confided in at least one person in the 3 months after surgery had a 7-year survival rate of 72.4%, as compared to 56.3% for those who didn’t have a confidant.” Institute for the Future

Internet User, F 41 $63,000 HHI 64% work FT 54% moms 6 hours/week online Source: NetSmart Research

“Self-medication is the wave of the future, whether the [pharmaceutical] industry likes it or not.” Wall Street Journal (5-23)

DTC > Professionals Claritin Pravachol Zyban Evista Propecia Prilosec Primera Source: JAMA

“Online Medical Records Seen Empowering Patients” Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K patients @ CareGroup

Determinants of Health Access to care: 10% Genetics: 20% Environment: 20% Health Behaviors: 50% Source: Institute for the Future

Make time for your most important asset. Your health. Ad for Mayo Clinic Executive Health Program/Jacksonville, Orlando Airport

Message: Patients aren’t. Consumers [will] rule.

2. Demographics : The BOOMERS Reach 55!

Boomer World “From jogging to plastic surgery, from vegetarian diets to Viagra, they are fighting to preserve their youth and defy the effects of gravity.” M.W.C. Howgill, “Healthcare Consumerism, the Information Revolution and Branding”

“Pick up any copy of Glamour or Men’s Health, and you’ll see pages of advertisements encouraging readers to enlarge their breasts, retard baldness, correct their vision, improve their smile, or relieve stress through herbs, massage therapy, acupuncture – you name it.” Coddington, Fischer, Moore & Clarke, Beyond Managed Care

Message Boomer: (1) “There are l-o-t-s of us.” (2) “We have the $$$$$$. (3) “We’re/ I’m in charge!” (4) “We’ll take no guff from anyone.” (5) “We know the emperor has no clothes.”

3. The IS/Web REVOLUTION

Info Revolution Consumerism (research, consultation, B2C, etc.) Clinical Info Systems (guidelines and outcome measurement, etc.) 100% Web-based (internal) Systems Electronic Medical Records Patient-physician email -consultation Telehealth-Remote Monitoring (biosensors, home testing, etc.) Telemedicine (consultation, invasive treatment, “global medical village,” etc.)

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

Henry Lowe, U. of Pitt. School of Medicine: “Broadband, Internet-based, ‘multimedia’ electronic medical records”

“Doctors Without Borders” World Clinic/Dr. Daniel Carlin: e-mail consultation & treatment for ex-pats, global execs, etc. Developing world: “They have the primary care doctors, but no infrastructure to train specialists. We become the specialists.” More: “Telemedicine Kiosks in Central America.” Etc. *On Magazine 04.01

Telemedicine: E.g. … HANC* [Home Assisted Nursing Care] *BP, ECG, pulse, temp

Telemedicine … Reduces days/1000 patients and physician visits for the chronically ill Decreases costs of managing chronic disease Expands service areas for providers Reduces travel costs to and from medical ed seminars Douglas Goldstein, e-Healthcare

Detroit Med Center: $100M IS Makeover Experiment: Surgical residents equipped with Palm IIIxe. Med Director: “It’s not unusual to have a team of 5 or 6 residents responsible for the patients of 25 doctors. For each resident, that could mean seeing 40 patients spread across 10 floors and 5 buildings.” Records work was manual; but “Now you export the list of patients to your Palm, with the room number for each patient and with lab results from the last 72 hours.”

“Without being disrespectful, I consider the U.S. healthcare delivery system the largest cottage industry in the world. There are virtually no performance measurements and no standards. Trying to measure performance … is the next revolution in healthcare.” Richard Huber, former CEO, Aetna

“A healthcare delivery system characterized by idiosyncratic and often ill-informed judgments must be restructured according to evidence- based medical practice.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“As unsettling as the prevalence of inappropriate care is the enormous amount of what can only be called ignorant care. A surprising 85% of everyday medical treatments have never been scientifically validated. … For instance, when family practitioners in Washington were queried about treating a simple urinary tract infection, 82 physicians came up with an extraordinary 137 strategies.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“With little fanfare, a gathering revolution is transforming the everyday practice of medicine. Owing more to laptops than lab coats, this is an information revolution, one that is beginning to yield answers to the most basic questions that haunt those who are sick: Who shall live and who shall die?” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“Quality of care is the problem, not managed care.” Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)

RAND(1998): 50%, appropriate preventive care. 60%, recommended treatment, per medical studies, for chronic conditions. 20%, chronic care treatment that is wrong. 30% acute care treatment that is wrong.

CDC 1998: 90,000 killed and 2,000,000 injured from nosocomial [hospital-caused] drug errors & infections

Various studies: 1 in 3, 1 in 5, 1 in 7, 1 in 20 patients “harmed by treatment” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“Established state-of-the- art cancer care – about which there is no longer any debate – is erratically applied.” Source: Institute of Medicine’s National Cancer Policy Board

“In health care, geography is destiny.” Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural consequence of a system that systematically tracks neither its processes nor its outcomes, preferring to presume that good facilities, good intentions and good training lead automatically to good results. Providers remain more comfortable with the habits of a guild, where each craftsman trusts his fellows, than with the demands of the information age.” Michael Millenson, Demanding Medical Excellence

“In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to calculate medication doses. Eight out of 10 made calculation mistakes at least 10% of the time, while four out of 10 made mistakes 30 % of the time.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“With meticulous detail, historical accuracy, and an uncommon understanding of the clinical field, Millenson documents our struggle to reach accountability.” Journal of the American Medical Association, on Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“Patient by patient, problem by problem – drug reactions, hospital caused infections – Salt Lake City’s LDS Hospital has attacked treatment- caused injuries and deaths. One of the secrets of LDS’s success is a custom- built clinical computer system that may serve as a national model for how to save patient lives.” Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

Message: (1) Effective & encompassing use of IT is the healthcare revolution. (2) Get all- the-way on board or get discarded. (3) The situation as it stands is pathetic.

4. The “Consolidators”: Fat or Thin?

WebMD (or heirs & assigns)

“Virtual health care webs force providers to focus on their areas of excellence and to invest in areas where they can generate a sustainable competitive advantage.” Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide

“The future of hospitals is murky. A combination of technological advances, managed care, and changes in Medicare reimbursement policy means that the underlying demand for inpatient services will continue to fall.” Institute for the Future

“America has twice as many hospitals and physicians as it needs.” Med Inc., Sandy Lutz, Woodrin Grossman & John Bigalke

Message: Somebody is gonna get this right!

5. Genetics & Devices

Genetics & Devices Pharmacogenomics (“mini”busters, rational drug design, personalized medicine, gene therapy, vaccines--20% to 50% prescriptions not work) Neural Stem Cells Minimally invasive surgery Advanced imaging

“Pharmacogenomics could fundamentally change the nature of drug discovery and marketing, rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and money to craft a single medicine with mass-market appeal.” The Industry Standard (05.28.01)

“Recognizing that a single misspelled gene means the difference between being poisoned and being cured was the first victory for the new science of pharmacogenetics.” Newsweek (06.25.01)

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22) Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser- guided munitions, and it marks a sea change for the industry. The implications for existing business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline: “minibuster.” Rob Arnold, Euro head of life sciences, PWC : “Once you start dealing with minority treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make money could be at a real advantage.”

“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the operating table. That day may come sooner than you think.” Newsweek (06.25.01)

“There is no question in my mind that the future of heart surgery is in robotics.” Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial- bypass surgery

Message Summary: (1) An unparalleled time for imagination and bold action. (2) A time of unprecedented opportunities. (3) A time of unprecedented risk.

Craig Venter, Celera Genomics Bill Haseltine, Human Genome Sciences

Golden Age of Patient-centric, Genetics- driven Healthcare Looms! Current status: $1.3T. 70M uninsured. 90K killed and 2M injured p.a. in hospitals. 85% treatments unproven. Cure depends on locale in which treated. 50% prescriptions not work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybody’s mad and feels powerless: docs, patients, nurses, insurers, employers, hospital administrators and staff.

“Will biotechs be any better at [the new varieties of] drug discovery than Big Pharma? In the aggregate … they will be. There is nothing the small companies are doing that the large cannot. [But] research programs at big companies can meander for years. ‘It’s much more Darwinian in biotech,’ says [Triangle Pharmaceuticals founder and former head of R & D at Burroughs Wellcome] David Barry. ‘Investors tend to be much more demanding in their expectations than any internal review organizations in large companies.’ ” Fortune/07.23.01

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

Message: We are on the cusp of a “People’s [customer/ patient/ citizen/ etc.] Revolution.”

How Dare They! “Surfing the net is new route to college: But counselors fear that some students will pick schools with little guidance” Headline, p1A, USA Today, 10.03.00

Corporate Resistance to “It” “It all goes back to fear of losing control!” The Cluetrain Manifesto

Brand Outside Strategy 2A : 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

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

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

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

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

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.”

“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!) Paco Underhill

Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave their mate. WOMEN: women controlled by the men in their lives, who would rather be dead than oppressed. Source: Judy Rosener, America’s Competitive Secret

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

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps: Women love to talk. Men talk silently to themselves. Women think aloud. Women talk, men feel nagged. Women multitask. Women are indirect. Men are direct. Women talk emotively, men are literal. Men listen like statues. Boys like things, girls like people. Boys compete, girls cooperate. Men hate to be wrong. Men hide their emotions.

“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 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

“Women Beat Men at Art of Investing” Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term)

Investment Club Returns Women-only clubs 1997 … 17.9% Mixed … 17.3% Men-only … 15.6% Source: National Assoc. Investors

Value Line: Top State* Investment Clubs 2000 8 … All male 19 … Coed 22 … All FEMALE * VT & Maine not included; D.C. included

JBQ: Stop Treating Women Investors Like Idiots! “Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives.” Source: Newsweek 01.08.01

Marketing to Women: Help Them Save Time! 80% … work 86% … cook 58% … run errands with kids 38% … take child to school 21% … go to the gym 21% … take outside classes

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

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

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

[“The Hollywood scripts that men write tend to be direct and linear, while women’s compositions have many conflicts, many climaxes, and many endings.” Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World]

[“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]

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

The New New Jiffy Lube “In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation required’ experience.” New JL: “Control over her environment. Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability.” EVEolution

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

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?”

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS SEMINAR. [PLEASE: THINK ABOUT IT!]

Psssst! Wanna see my “porn” collection?

27 March 2000: email 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

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

Some Possible First Steps Data! (market research/best practices) Women as project managers/critical mass for many/most new product & marketing teams Strategic recruitment & promotion program (D&T) “Critical Mass” of women on the Board (“rule of three”)

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

Brand Outside Strategy 2B : Welcome to “Old World”!

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

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%)

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

[ Member Growth: 1987 – 1997 18 – 34: 26% 35 – 49: 63% 50+: 118% Source: IHRSA]

TP to IHRSA: Look this way! I am your ideal body type!

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

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

“Such a critical mass of older women with a tradition of rebellion and independence and a way of making a living has not occurred before in history.” Gerda Lerner, historian

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

“If you’re 35 years old and younger, you’re still acquiring possessions. If you’re between 35 and 50, you’re buying services. And if you’re over 60, you’re buying experiences. Much of our marketing culture is Gen X, and they’re focusing on themselves and Gen Y, and not doing a particularly great job of focusing on boomers and seniors.” Paco Underhill, Business Week OnLine, 01.04.01

Message: WHAT AN [overlooked] OPPORTUNITY!

60>20* *Italy, first time in human history Source: Ken Dychtwald, Age Power

Census Y2000 A First: Married couples with children ” – Dan Growhoski, True North Communications)

Brand Outside Strategy 2C : Welcome to “Green World”!

And #3: GREEN ?????: 50% to 36%: Protect Environment > Economic Growth. 58% to 34%: Protect Plants & Animals > Preserve Private Property Rights.

“Of all the ways the company will be judged over the next decade, none will be greater than our response to the issue of climate change.” William Clay FORD Jr.

E.g.: Genetically Altered Food Would eat: M, 71%; F, 50% Give to children: M, 59%; F, 37% Pay more for non-altered: M, 35%; F, 47% Source: www.pulse.org & USA Today

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

Brand Outside Strategy XX : Global is for Everyone!

THE EIGHT “RULES”

Rule #1 There’s no such thing as “too small to be global.” [GET A LIFE.]

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

Rule # 3 When? Now.

Rule #4 Hang out … vigorously!

Rule #5 Seek Talent! Send Talent!

Message(s) ABB, Shell ELITE Global Cadre Genuinely Global BOARD

Rule #6 Glom onto a [modest-sized] partner … who loves/ “gets” you!

Rule #7 Tailor!! [But don’t give away the store.]

Rule #8 Phil Crosby notwithstanding, you’ll not [likely] “get it right the first time”!

Brand Outside Strategy 3A : 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

“What’s imperative is the creation of a style that becomes a culture linking you to the community. You can only do that through good design.” – Anita Roddick Source: Design Council [UK]

“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

“The good 10 percent of American product design comes out of big-idea companies that don’t believe in talking to the customer. They're run by passionate maniacs who make everybody’s life miserable until they get what they want.” Bran Ferren, Applied Minds/Wired 1-2001Wired 1-2001

“In Europe, you have to have inspirational vehicles, that people are proud to own and lust to drive.” Nick Scheele, Chmn., Ford Europe

DESIGN transforms the perception of what’s possible. E.g.: Plate-glass windows. Apple II.

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

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

P.S. Web = PURE DESIGN MEDIUM

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

Design Transforms even the [Biggest] Corporations! TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

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

I LOVE my ZYLISS Garlic Peeler!

Design = “There are three basic principles behind any well- designed product: truth, humanity, and simplicity.” Sohrab Vossoughi, Ziba Design

Design = SIMPLICITY … HONESTY … ACCESSIBILITY … ENJOYMENT Jonathan Ive (iMac)

Design “is” … WHY I GET MAD. MAD.

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

“I’m just going to come right out and say it: Ericsson lost $2.3B on mobile phone handsets last year because its products are ugly.” Peter Martin (FT 04.24.01)

Design is never neutral.

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

THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has become a professional obsession. I – SIMPLY – BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” … that damn few companies put – consistently – on the front burner.

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

First Steps: “Beauty Contest”! Select one form/document: invoice, air bill, sick leave policy, customer returns- claim form Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on three dimensions: Beauty, Grace, Clarity Re-invent! Repeat, with a new selection, every 15 working days.

“My favorite word is grace – whether it’s amazing grace, saving grace, grace under fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or the environment.” Celeste Cooper, designer

Great design = One-page business plan (Jim Horan)

Life 101: Contracts What are the 5 (not, 4, not 6) Main Points? Please summarize on ONE page. (ENGLISH, PLEASE.) (Let the bloody lawyers and agents do their masturbatory acts on the “last 98%.”) Understand that if it’s “good,” we’ll all be healthy & wealthy & wise; if it’s bad, somebody’s lawyer will figure a Way Out … fast. (McK: If you ever have a Problem, we’re gone tomorrow a.m.)

Design Rules! [Literally] Palm Beach County’s U.C.B. * [*Utterly Confusing Ballot]

Message: Design is the wellspring of branding. Great design takes guts and is “soul deep.”

Compare 10 order forms or data fields at a Web site. Save great and awful junk mail. Go on a <$10 shopping spree. Pay attention to signage. (And instruction manuals.) Start a notebook. NOW.

Design-Minded Company: Credo Design matters! Everywhere! The Brand Promise rules! Everywhere! All can answer: WHO ARE WE? HOW ARE WE DISTINCT? Words such as beauty & grace & emotion & connection & Wow & adventure are okay ’twixt 9 and 5. Non-Wow doesn’t cut it. Anywhere! We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis on the arts, is part of this. Diversity-R-Us!

Design-Minded Company: Operating Philosophy All work is the product of Hot Teams of peers. Hierarchy is minimal, and usually a distraction. We understand that “disrespect” is the ultimate in respect in crazy times. The Work Matters! Wow … or bust! All work reflects design-mindfulness & the brand promise. Promotion comes immediately if the work is Wow. NO BULLSHIT. We keep our word to our teammates and other partners. Integrity = No.1 outcropping of design-mindfulness. We are a business. Results matter!

“The good 10 percent of American product design comes out of big-idea companies that don’t believe in talking to the customer. They're run by passionate maniacs who make everybody’s life miserable until they get what they want.” Bran Ferren, Applied Minds/Wired 1-2001

“The real secret of the fashion business is that it is prepared to put up with difficult, temperamental, quirky people in the name of style – and ruthlessly dump them if they lose their ability to please a fickle public.” Peter Martin (FT 04.24.01)

Message: All the “cool stuff” looks [exactly] like all the other “cool stuff” in this, THE BRIGHT NEW AGE OF DESIGN.

“Our innate idiosyncrasies are actually more endearing to others than our most glorious achievements.” – Veronique Vienne, The Art of Imperfection. “Glorious imperfections” – Sam Phillips, Sun Records, on identifying & presenting raw talent

The Art of Imperfection/Veronique Vienne The art of making mistakes The art of being shy The art of looking like yourself The art of having nothing to wear The art of not being right The art of being disorganized The art of having taste-not good taste The art of not knowing what to do The art of being silly The art of being neither rich nor famous

“The best beauty product is to have a life. A real life. With challenges, disappointments, stress and laughter. The much- touted inner beauty is a natural radiance that comes as a result of mental and emotional involvement.” Veronique Vienne, The Art of Imperfection

“When I am bored I am a thousand years old.” “Women should have pleasurable flaws.” Coco Chanel, via Veronique Vienne, in The Art of Imperfection

“Against Smoothness” (Harper’s Magazine 07.2000)

“The most beautiful thing we can experience is the mysterious. It is the source of all true art and science. He to whom this emotion is a stranger, who can no longer wonder and stand in awe, is as good as dead.” Einstein

The Surrealists: “True beauty is embodied in irrationality and coincidence.” The Tate Modern

Mark Rothko

Design for Delight book title, Tate Modern

Message: Men cannot design for women’s needs. Period.

Pursue radical simplicity!

The Complexity Conundrum Complex problems call for complex systems. (True.) Complexifiers take refuge behind complex systems. (Complexifiers complexify complex systems.) Those who make the history books are simplifiers. (E.g., Gordon Bell: 500 v. 50.) If you can’t explain it in one page, it ain’t worth explaining.

Brand Outside Strategy 3B : 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

“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 Freeman Thomas

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

Plot Williams Sonoma = 5 [was 10] Crate & Barrel = 8 Sharper Image = 9+ Smith & Hawken = 8+ Garnet Hill = 9 L.L. Bean = 4 [was 9+] Colonial Williamsburg = ?

The “Experience Ladder” Experiences Services Goods Raw Materials

1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00

LAN Installation Co. to Geek Squad (2% to 30%/Minn.)

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 Theatre & Every Business a Stage

Client: “We’re not like Nike! We sell paper clips, 9mm bolts, who can be bothered?” JK: “The whole world can be bothered if you brand them well. Nike does not actually sell shoes. Nike sells the experience of using Nikes, the feeling of being a winner. And they condense the message into just three words: Just Do It! It is a question of being the only one, of offering the market something unique.” Source: Jesper Kunde, A Unique MomentJesper Kunde

Message: “Experience” is the “Last 80%” “Experience” applies to all work!

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

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

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

“Experience”: Home to [tomorrow’s] Market Cap!

THIS IS A BIG DEAL!

Brand Outside Strategy 3B.1: A Case in Point: The Four Seasons

“Practice Management” “Lessons” from the Four Seasons Boston

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

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

“The two most powerful things I know in existence: a kind word and a thoughtful gesture.” Ken Langone, CEO, Invemed Associates

Why I Stay at the Four Seasons Boston The access to technology is excellent. (I’ve trained them in this!)

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

Why I Stay at the Four Seasons Boston 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 Boston The fact that I feel okay arriving in shorts and a baseball cap. (Even though they serve princes & sheiks.)

Why I Stay at the Four Seasons Boston The clientele.

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

Why I Stay at the Four Seasons Boston Responsiveness. (Operational excellence.)

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

Why I Stay at the Four Seasons Boston Trust.

Why I Stay at the Four Seasons Boston The windows open. (Okay, call it an idiosyncrasy.)

Why I stay at the Four Seasons Boston The view is great. (I am sensitive to my surroundings … even in the midst of a one-night stand.)

Why I Stay at the Four Seasons Boston: Payback! It ain’t free.

Brand Outside Strategy 4 : BRAND POWER!

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

“The idea that business is just a numbers affair has always struck me as preposterous. For one thing, I’ve never been particularly good at numbers, but I think I’ve done a reasonable job with feelings. And I’m convinced that it is feelings – and feelings alone – that account for the success of the Virgin brand in all of its myriad forms.” Richard Branson

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

“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

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

“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, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]

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

“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

“We’re not going to be driven by where we think a funding agency would like to see us go. We’re going to build our case … and then find an organization that agrees with us.” Stephen Spongberg, Polly Hill Arboretum

Jesper Kunde’s Challenge: All business processes should be aligned with the Brand/Value Promise. Think … Brand Driven Systems!

Remember! Talent = Brand* * And don’t forget Hal R.

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

Edgartown MA: A&P Fun in the Sun Store

“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!

Exercise : Write copy for a bookmark! (Etc.)

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 BrainDoug Hall

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.

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)

[Tell the TRUTH P-l-e-a-s-e ]

“WHO ARE WE?”

WHAT’S OUR STORY?

“It’s a question of how to marshal our resources. I’d like us to be really great in four or five areas. We have to make some hard choices. “The big challenge is, we’ve got to get a story about science that’s completely understandable. To get money in wholesale amounts, you’ve got to sell concepts.” Larry Small, Smithsonian Institution

“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

“ WHY DOES IT MATTER TO THE CLIENT?”

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

“Salt is salt is salt. Right? Not when it comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf.” Tom Asaker, Humanfactor Marketing

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

Brand Outside Reprise: Wimps & Weenies Need Not Apply!

Re-invention via ecommerce: Why Tough Total commitment to total enterprise [and supply chain] reinvention!

Self-Determination: Why Tough Cede Control

Women’s [Aging,Green] Market: Why Tough Encompassing Attitude CULTURAL!

Design: Why Tough True-believer-dom-ship Encompassing/Cultural

Experience: Why Tough Total Reorientation

Going Global: Why Tough ’tude! Patience

Brand Power: Why Tough Way of Life Forever! Passion Rules! Touches Everything! It Am Me [Personal!]

Message : Not for the Faint of Heart!

Our Journey

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

Forces @ Work I The Destruction Imperative!

Brand Inside Brand Org: Lean, Linked, Internet-driven, Virtual

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

Brand Inside Brand You: Distinct … or Extinct

Brand Inside Brand Talent: The Great War for Talent

Brand Inside Brand Action: Getting Started … a Personal Perspective

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

Forces @ Work II The Sameness Trap

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

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

Brand Outside Strategy 2A : Women Rule!

Brand Outside Strategy 2B : Welcome to “Old World”!

Brand Outside Strategy 2C : Welcome to “Green World”!

Brand Outside Strategy 3A : Design Matters!

Brand Outside Strategy 3B : It’s the Experience!

Brand Outside Strategy 4 : BRAND POWER!

I. Personal Stuff …

Indefatigable “indefatigable” … “courage” … “love the thrill of the hunt” … “must not have just a desire to win, but a need to win” … “enjoy doing things they don’t know how to do” … “seek out discomfort zones in order to gain new experiences” … “willing to piss people off” … “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES”

“A real superstar is mean in a particular way. He is Michael Jordan or Cal Ripken, greedy for records and history. Armored and self-contained, his inner core is a hard knot of physical talent and fierce will. Nothing penetrates that core, and anybody or anything that gets too close is out of his life.” Michael Sokolove, “The last Straw”

“I think I’m happy. It may not seem like I’m happy on my face, but I’m also greedy. And I’m not done.” Shaq O’Neal, on why he didn’t go nuts when the Lakers finished the best NBA post-season ever

You Must Care! “Leaders care!” … “The true definition of leadership is service.” … “genuinely care” … “Leaders CARE!” … “Leadership is service.” … “LEADERS SERVE.”

Real! “Leaders are living individuals whom employees can smell, feel, touch their presence” [the elevator test] … “Leaders love their work. That passion is infectious.” … “ ‘It’s only business, not personal’ … IT ALWAYS IS PERSONAL.” … “If you love what you do, it shows. You cannot fake love and succeed.”

Integrity “ooze integrity” … “certain things I’ll never do” … “shoulder the unpleasant tasks”

Miscl. Know yourself … Aware of your impact on others … Have an Honest Coach … Take breaks

II. Tactics …

“Sweat the small stuff” [cultural giveaways: the clean parking lot, etc.] … “Build/Design” beats “Design/Build.” … Ferret out the truth/Find cool internal sources: LEADERS NEVER HEAR THE TRUTH … “COMMUNICATE RELENTLESSLY” … ASK BETTER QUESTIONS …

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

“Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.”

Leadership 2001 Talent-obsessed (Great>>>Good) Opportunity Structure (Fast, Cool, Accountable, Rewarding) Pursuit of a Cause (Brand-driven) Content-driven (“PSF”/WOW! Projects) State-of-the-Art (Technology!) Adventuresome Culture (Disrespect, Short Memory, Sense of Humor) Culture of Hyper-urgency Enthusiast-in-Chief

TP’s BIG BEEF: (Many) CEOs are NOT (Really) Serious (Obsessed) about: Internet’s encompassing potential Talent development Branding/Design “Marketing” to: Women, the Ageing, African-Americans, Hispanics Creating an HSDE (e.g., Mkt. Share vs. Mkt. Creation; encouraging a Culture of Disrespect)

“I don’t know.” Karl Weick

“The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame where the old tools of logic may be its undoing rather than its salvation. To drop these tools is not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick

Leaders-Teachers Do Not “Transform People”! Instead they (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?) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) to (5) go-create places they (and their teachers-leaders) had never dreamed existed/ they could go.

Weick I Uncertainty will be based less on insufficient facts and more on insufficient questions. There will be fewer experts and more novices. There will be more of a premium on staying in motion than on detaching and reflecting. There will be more migration of decisions to those with the expertise to handle them, and less convergence of decisions on people entitled by rank to make them.

Weick II There will be fewer attempts to capture the big picture and more attempts to capture the big story, with its ongoing, dynamic plot. There will be more focus on updating and plausibility and less on forecasting and accuracy. There will be more improvisation and fewer routines. There will be more humility and less hubris. Source: The Future of Leadership, Warren Bennis et al.

BossMessage2001: YOU CAN’T KEEP UP! YOU DON’T HAVE THE ANSWERS!

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

Priority #1

“To Don’t ” List

“One of the hardest things you have to do in running a company is not lie to yourself. Let’s say I start 10 new ideas. Two are clear winners, two are clear losers. I’ve got six things in between. I always kill the clear losers. The problem is we let the six in the gray zone live because we rationalize that they’re not failures. ‘Ah, it’s going to work.’ ‘Ah, it’s coming along.’ ‘Ah, just a little more.’ The reality is we should think of everything except clear winners as losers.” Bob Pittman, AOL Time Warner

Brand Leadership Passion Rules!

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.]

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

“You must be the change you wish to see in the world.” Gandhi

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

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

“Stories of identity – narratives that help individuals think about and feel who they are, where they come from, and where they are headed – constitute the single most powerful weapon in the leader’s arsenal.” Howard Gardner, Leading Minds: An Anatomy of Leadership

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

“As Ministers of The Republic of Tea, our not-so-covert mission is to carry out a Tea Revolution.” Ron Rubin & Stuart Avery Gold, success@life

“Our free and open immigration policies welcome all who wish to flee the tyranny of coffee crazed lives and escape the frazzled fast paced race-to-stay-in-one-place existence that it fuels. In our tiny land, we have come to learn that coffee is about speeding up and losing sight, while tea is about slowing down and taking a look. Because tea is not just a beverage, it is a consciousness altering substance that allows for a way of getting in touch with and taking pleasure from the beauty and the wonder that life has to offer.” Ron Rubin & Stuart Avery Gold, success@life

Ben ZanderBen Zander: “ I am a dispenser of enthusiasm.”

“Entusiasmatore” Word invented by Silvio Berlusconi, meaning enthusiast-salesman

“A leader is a dealer in hope.” Napoleon

“[Ronald Reagan] radiated an almost transcendent happiness.” Lou Cannon, George (08.2000)

“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ Mr. B has such enthusiasm for his subject.’ ‘You can tell that this is really Prof. C’s life.’ ” Parker Palmer, The Courage to Teach

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

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

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

Have you changed civilization today? Source: HP banner ad

Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001.

Similar presentations

Presentation on theme: "Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001.

Similar presentations

Presentation on theme: "Tom Peters Seminar2001 We Are in a Brawl with No Rules! MASTER/09.19.2001."— Presentation transcript:

Similar presentations

About project

Feedback