Presentation on theme: "Tom Peters Seminar2001 We Are in a Brawl with No Rules. Pittsburgh/09"— Presentation transcript:
1 Tom Peters Seminar2001 We Are in a Brawl with No Rules. Pittsburgh/09
2 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. Lavender text in this file is a link.
3 <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift 1800s: > prior 900 years 1900s: 1st 20 years > 1800s 2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th 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
4 “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 (Also see Kurzweil’s The Age of the Spiritual Machine.)
5 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 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 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
8 The Kotler Doctrine: 1965-1980: R. A. F. (Ready. Aim. Fire The Kotler Doctrine: : R.A.F. (Ready.Aim.Fire.) : R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!)
9 “Most of our predictions are based on very linear thinking “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
10 “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
11 BMcC: (1) Hierarchy vs. “Network organization BMcC: (1) Hierarchy vs. “Network organization.” (2) NWO = “Doctrine as center of gravity”/source of motivation; distributed support & decision-making;largely self-organizing; “outside the military sphere.”
13 “Our military structure today is essentially one developed and designed by Napoleon.” Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
14 “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
15 Structure Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
16 TOPICS. BRAND INSIDE. Forces at Work II: The Destruction Imperative 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.
17 TOPICS. BRAND OUTSIDE. Forces at Work II: The Sameness Trap 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 4: Brand Power.
18 TOPICS. BRAND LEADERSHIP. Leading in Totally Screwed-up Times.
19 Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
21 “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)
22 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
24 The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
25 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)
33 The Pincer 5 “Destructive” entrepreneurs/ Global Competition “White Collar Robots” THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!
34 “Assetless Company” John Bryan, CEO, on selling all Sara Lee’s manufacturing
35 “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.
36 Better Red than Dead. / Better Dead than Red Better Red than Dead?/ Better Dead than Red? “We will see more and more outsourcing of discovery processes.” Craig Venter
37 Better Red than Dead. / Better Dead than Red 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
38 Brand Inside Brand Work: The Professional Service Firm Model
39 So what will be the Basic Building Block of the New Org?
40 Every job done in W.C.W. is also done “outside” …for profit!
41 Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
42 “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!
44 eHR. /PCC. All HR on the Web eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
45 (1) 100% goes on the Web. (2) Non-awesome is outsourced (1) 100% goes on the Web. (2) Non-awesome is outsourced. (3) Remaining “Centers of Excellence” are leveraged to the hilt!
46 Brand Inside The Heart of the Value Creation Revolution: PSF Unbound!
47 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business!
48 [“These days, building the best server isn’t enough [“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett-Packard]
49 HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.
50 “We want to be the air traffic controllers of electrons “We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
51 “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
52 GE’s New Six Sigma Approach Old view: Out of service 9 days 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
53 “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/ (Welch raised share of services revenue from 15% to 70%)
54 “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)
57 “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
58 Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal
60 Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal
61 “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
62 [“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 ( )]
63 “Knowledge becomes obsolete incredibly fast “Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” Peter Drucker, Business 2.0 (22August2000)This portends a cradle-to-grave education revolution, for which the school system … call it K-80 … is hardly prepared. [Corporations are currently doing a better job – and experimenting more vigorously - at all aspects of education than the public sector.]
65 Brand Inside Redefining the Work Itself: The WOW Project
66 “Reward excellent failures. Punish mediocre successes “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
67 “Learn not to be careful “Learn not to be careful.” Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa)
68 Brand Inside Brand Action: Getting Started … a Personal Perspective
69 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.
70 Topic: Boss-free Implementation of STM /Stuff That MATTERS! Implementing offbeat stuff … that matters … is the whole point! And there is a proven – if unconventional route – I believe. Basic premise: Avoid “selling up” like the plague! No surprise: If you are selling revolution … don’t bet the farm on getting the support of the current establishment.
71 World’s Biggest Waste … Selling “Up” Yes it is! BIGGEST WASTE! People – bosses especially – are not impressed by intellectual arguments, from 26-year-olds or 46-year-olds. [Particularly when it comes to revolutionary – nonestablishment – ideas.] THEY ARE IMPRESSED BY RESULTS! So forget the “perfect” presentation, long labored over. Hey, forget the boss. Instead …
72 THE IDEA: Model F4 Find a Fellow Freak Faraway Topic #1: THE MAIN IDEA. You need at first a [one!!!!] buddy who shares your peculiar passion … and who will play with you. [Play = Big Word. Much more later.]
73 Heart of the Matter F2F. /K2K. / 1@T/R. F. A Heart of the Matter F2F!/K2K!/ *Freak to Freak/Kook to Kook/ One at a Time/ Ready.Fire!Aim.The hell with B2B. Try K2K!!!!That is, Kook 2 Kook. [Or, a pal says, F2F … Freak 2 Freak. Fine!] [Or, per me redux: W2W … Weirdo 2 Weirdo.]“They” say that no revolution has ever been concocted by more than a dozen people. I’m inclined to buy that.Hence the key to your Revolution [in HR, IS, Purchasing & Logistics] is those first recruits!Your Premier Fellow Kooks [Freaks, Weirdos]! Who will risk life & professional limb for this Very Cool [Kewl] idea which will change the world.Frankly, we’d rather not have a Vice President or Div. Gen. Mgr. aboard at first. They are subject to too bright a spotlight. We’d rather labor in the distant vineyards with young, passionate pioneers … who want to change the world … JUST FOR THE HELL OF IT.To be sure, once we’ve demo-ed the idea in a few places, we’ll go after a Rad/Kewl VP to become our Management Sponsor/Protector-from-the Forces-of-Evil. But for starters, the invisible, passionate ones are the keys.
74 And … K2KK. S2SS. Kook to Kooky Kustomer And … K2KK* S2SS** *Kook to Kooky Kustomer **Skunk to Scintillating SupplierRad/Kewl Dudes need not be confined to “our house.” I listened to an internal talk by the Director of Research at a GIANT company recently. You’d think these guys could do as they please. Not so! Big Companies’ customers tend to be … BIG … AND … THENCE … CONSERVATIVE. This fellow has a radical plan for a new-product portfolio. And he figures the only way he could ever sell it to the “Big [Customer] Guys” is to brilliantly demo it with some modest-sized Pioneer Customers. Hence his Relentless Pursuit of Partner Kook Kustomers.I call this K2K Redux. That is, the Kook 2 Kook idea expanded to encompass customers and/or suppliers, “outsiders” who want to be Playmates and Soulmates in Pursuit of Earthshaking Concepts. [How about “K2KK” … Kook 2 Kook Kustomers?]Again: Such partners will rarely come from Established Giants. [Not Fair! Look closely … and you may find FFs – Fellow Freaks – in odd nooks and crannies of the most conservative firms.]
75 THE NUGGET Do Something. Do Anything. Get Going. Now. So we’ve got the basic idea. Right? Now … onto … THE WORK ITSELF.The vision should be grand. [Work Worth Doing.] But the Raw Meat can be mundane. Action is the name of the game. [Hey, that’s how – the only way – you lasso more supporters.]
76 Opportunity ALWAYS Knocks VFCJ* “Strategy” *Volunteer For Crappy Jobs Lesson: THERE IS NO JOB – NO MATTER HOW APPARENTLY ROTTEN – THAT CANNOT BE USED AS A “DEMO” FOR SOMETHING REALLY COOL/KEWL/BIG. (No bull.)Success Secret: Turn Any Sow’s Ear into a Silk Purse … as a matter of routine. The ONLY roadblock: ATTITUDE!Read on …
77 Is It … “The Oh-Hell-I-Wish-It-Were-Over Memorial Day picnic” or “The First Annual Seriously Kewl Celebration of Our Incredible Staff”So you draw the short straw. YOU – the “powerless” 28-year-old – ARE “IN CHARGE” OF THE [dreaded] MEMORIAL DAY PICNIC.It’s a desultory affair. Employees and their families feel they must show up … or they’ll lose points.But … NOW … it’s Your Baby. You talk to folks. Ask them what would be Cool/Kewl. You – finally – get a decent Band. You create contests to develop the Kewlest Booths. You force Top Management to show up [YOU EMBARRASS THEM INTO IT], and to be the Guys Who Get Dunked in the throw-the-ball-at-the-old-bald-guy-in-the-chair-over-the-pool “contest.”You do 15 things like this … and turn “it” into The-Employee-Event-Of-The-Year. Fact: IT CAN SET/RE-SET THE ENTIRE TONE OF “EMPLOYEE RELATIONS” FOR THE 167-PERSON UNIT. Fact Redux: You can “get away with this” precisely because it’s a CJ/Crappy Job that no one else wants!
78 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?One more “CJ”. [Again: I believe you can Find a Freak or 2 to work with on this. If you are assiduous in your networking skills. Remember: Cultivate that University of Weird.]
79 Reframers’ Rules: Rule 1: Never accept an assignment as given. (Please 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!I call “it” Reframers’ Rules. To wit: ONLY FOOLS ACCEPT ASSIGNMENTS … “AS GIVEN.” No baloney.The Idea: Twist “it” – that Memorial Day Picnic or the outcropping of customer complaints about the new product – into something that can … MAKE A [big] DIFFERENCE. AND: Such “twisting” is … ALWAYS … possible. [Please … trust me … on this one.]Great News I: “It” is actually easiest to do when you are “powerless.” That is, “they” will Not Be Watching … as you turn the “dreaded” Memorial Day Picnic into … SOMETHING REALLY KEWL. Or shift the safety manual “update” into a full-scale Workplace Review.Great News II: Such “small stuff” really does contain the Essential Beliefs of the company/unit. The PICNIC … in fact … reveals more about Who We Are/How Much We Care than a hundred formal policy proclamations.GOT IT?
80 BOTTOM LINE The Enemy!Implementation is a Soft Art! I.e.: It’s all about people. [Duh!]
81 Joe J. Jones 1942 – 2001 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM! Tragedy! [Doesn’t remind you of Churchill or Gandhi or Betty Friedan, does it?]
82 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
83 Characteristics of the “Also rans” Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” *Fortune, article on “Most Admired Global Corporations”
84 “It is a glory to have broken such infamous orders “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
86 The Sales25: Great Salespeople … 1. Know the product 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.)
87 Great Salespeople … 8. Never overpromise 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.)
88 Great Salespeople … 12. Think “Turnkey. ” (It’s always your problem 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 Are wary & respectful of upstarts—the real enemy. 20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
89 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!
90 Brand Inside Brand Talent: The Great War for Talent
91 “When land was the scarce resource, nations battled over it “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH
98 “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 ( )
99 Message: Some people are better than other people Message: Some people are better than other people. Some people are a helluva lot better than other people.
104 “Why focus on these late teens and twenty-somethings “Why focus on these late teens and twenty-somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.” The Economist [12/2000]
106 “Diversity defines the health and wealth of nations in a new century “Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
108 “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week,
109 The New Economy … Shout goodbye to “command and control” The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!
110 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
111 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
112 “TAKE THIS QUICK QUIZ: Who manages more things at once “TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
113 “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
114 It’s Girls, Stupid. 1996: 8. 4M women, 6. 7M men in college (est: 9 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)
115 “Boys are trained in a way that will make them irrelevant “Boys are trained in a way that will make them irrelevant.” Phil Slater
116 Okay, you think I’ve gone tooooo far Okay, you think I’ve gone tooooo far. How about this: DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?
117 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
119 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
120 “Are there enough weird people in the lab these days. ” V. Chmn “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01)
121 Would Craig Venter (Luciano Benetton) come to work for us?
122 Axiom: Never hire anyone without an aberration in their background!
123 “I would like to think we could attract students with green hair “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
125 “H.R.” to “H.E.D.” ??? Human Enablement Department
126 Leaders-Teachers Do Not “Transform People” Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!
137 “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!
138 “How many artists are there in the room “How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En 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 was participating in the suppression of creative genius.” Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
139 “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)
140 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
142 “Every time I pass a jailhouse or school, I feel sorry for the people inside.” Jimmy Breslin, , 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?”]
143 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 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
144 Kafka-like rituals (cont 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
146 “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
147 “Education, at best, is ecstatic “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 
148 The Learner’s Manifesto The brain is always learning 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
149 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
151 Tom’s Edu3M Manifesto* *Manifesto for Education in the 3rd Millennium
152 Education3M Learning is a normal state. Children are learnavores 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.
153 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.
154 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.]
155 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.
156 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.
157 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.
158 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.”
159 Brand Inside Reprise: THINK WEIRD: The High Standard Deviation Enterprise
160 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
161 “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
162 “I made a note. I’m going after [PIONEER CO “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
163 Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.]
165 TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity 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.
166 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.”
167 BRASSY-BUT-GROUNDED-LEADERSHIP 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.
168 BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont 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.)
169 ALLIANCE MANIACS. Don’t assume that “the best resides within 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.”
170 TECHNOLOGY-NETWORK FANATICS 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.
171 POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next 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.”
172 Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
174 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
175 “We make over three new product announcements a day “We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina
176 “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
177 “Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, A Unique Moment
179 Brand Outside Strategy 1A: Use E-Commerce to Re-invent Everything!
180 Dell’s OptiPlex Facility Big Job: 6 to 8 hours 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)
181 Cisco! 90% of $20B (=$50M/day) Annual savings in service and support from customer self-management: $550M
182 Secret Cisco: Community. C. Sat e >> C 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)
183 Webcor. Construction. Web site for each project 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)
184 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
185 Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.
186 “Ebusiness is about rebuilding the organization from the ground up “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.” Ray Lane, Kleiner Perkins
187 “There’s no use trying,” said Alice “There’s no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.” Lewis Carroll
188 I’net … … allows you to dream dreams you could never have dreamed before!
189 Brand Outside Strategy 1B: Healthcare et al Brand Outside Strategy 1B: Healthcare et al.: Embracing an e-Led Age of Self-Determination
190 “The Web enables total transparency “The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business
191 “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
195 “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
196 “A seismic shift is underway in 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”
197 Consumer Imperatives Choice Control (Self-care, Self-management) Shared Medical Decision-making Customer Service Information Branding Source: Institute for the Future
199 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”
200 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 from anyone.” (5) “We know the emperor has no clothes.”
202 “We’re in the Internet age, and the average patient can’t their doctor.” Donald Berwick, Harvard Med School
203 “Without being disrespectful, I consider the U. S “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
204 “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
205 “In health care, geography is destiny “In health care, geography is destiny.” Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson
206 CDC 1998: 90,000 killed and 2,000,000 injured from nosocomial [hospital-caused] drug errors & infections
207 “Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors “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
208 4. Information Consolidators: The Network Maestros
210 “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
212 “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 ( )
213 “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 ( )
214 “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
215 “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 ( )
216 Golden Age of Patient-centric, Genetics-driven Healthcare Looms 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.
228 Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities
229 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.”
230 “Men seem like loose cannons “Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. … For a man, ignoring the price tag is almost a sign of virility.” Paco Underhill, Why We Buy* (*Buy this book!)
231 Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t Read Maps
232 “It is obvious to a women when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in he 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
233 “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
234 “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
235 “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
236 Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold
237 EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand
238 “The ‘Connection Proclivity’ in women starts early “The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution
240 “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 SecretIt is – on average – this different!
241 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
244 “Honey, are you sure you have the kind of money it takes to be looking at a car like this?”
245 27 March 2000: to TP from Shelley Rae Norbeck “I make 1/3rd 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!”
246 STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that women’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters
247 Ad from Furniture /Today (04. 01): “MEET WITH THE EXPERTS Ad from Furniture /Today (04.01): “MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way” Presenting Experts: M = 16; F = ??(272?)
249 “If we are single, they say we couldn’t catch a man “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
250 Brand Outside Strategy 2B: Welcome to “Old World”!
251 “ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.” Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old
258 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 21st Century Will Be Ruled by the New Old
259 Brand Outside Strategy 2C: Welcome to “Green World”!
260 And #3: GREEN. : 50% to 36%: Protect Environment > Economic Growth And #3: GREEN?????: 50% to 36%: Protect Environment > Economic Growth. 58% to 34%: Protect Plants & Animals > Preserve Private Property Rights.
261 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: & USA Today
264 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
265 “We don’t have a good language to talk about this kind of thing “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
266 “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)
267 Unconventional [Design] Messages Not about. “Lumpy Objects”. Not about Unconventional [Design] Messages Not about ... “Lumpy Objects”! Not about ... $79,000 objects
268 The I. D. [International Design] Forty. Airstream … Alfred A 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
269 Unconventional [Design] Messages Not about. “Lumpy Objects”. Not about Unconventional [Design] Messages Not about ... “Lumpy Objects”! Not about ... $79,000 objects
270 Design Transforms even the [Biggest] Corporations Design Transforms even the [Biggest] Corporations! TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)
276 Hypothesis: DESIGN is the principal difference between love and hate!
277 THE BASE CASE: I am a design fanatic 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.This is my core argument.
278 Brand Outside Strategy 3B: It’s the Experience!
279 “Experiences are as distinct from services as services are from goods “Experiences are as distinct from services as services are from goods.” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
280 “The [Starbucks] Fix” Is on … “We have identified a ‘third place “The [Starbucks] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” Nancy Orsolini, District Manager
281 Experience: “Rebel Lifestyle Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership
282 The “Experience Ladder” Experiences Services Goods Raw Materials
283 1940: Cake from flour, sugar (raw materials economy): $1 1940: Cake from flour, sugar (raw materials economy): $ : Cake from Cake mix (goods economy): $ : Bakery-made cake (service economy): $ : Chuck E. Cheese (experience economy) $100.00
284 Message: “Experience” is the “Last 80%” “Experience” applies to all work!
287 “Most companies tend to equate branding with the company’s marketing “Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, 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
288 “We are in the twilight of a society based on data “We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies
289 “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.]
290 “Brand Promise” Exercise: (1) Who Are WE “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!
298 Leaders-Teachers Do Not “Transform People” Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!
299 2. Great Leaders on Snorting Steeds Are Important – but Great Managers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul.
300 2A. “Just One”: Great Leading = Great Mentoring.
301 Goal of the Year No. 1. : Find-Develop-Mentor ONE Extraordinary Person Goal of the Year No. 1*: Find-Develop-Mentor ONE Extraordinary Person. *CEO, large financial advisory firm, April 2001
302 3. But Then Again, There Are Times When This “Cult of Personality” (Type II Leadership) Stuff Actually Works!
303 4. Find the “Businesspeople”! (Type III Leadership)
309 Renaissance Men are … a snare, a myth, a delusion!
310 6. The Leader Is Rarely/Never the Best Performer.
311 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P ,26 games. Sparky Anderson—1 season.
314 “Most of our predictions are based on very linear thinking “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
318 “Sony Electronics has a well-earned reputation for persistence “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)
320 “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 PlaySORRY … I LOVE THIS. “SERIOUS PLAY” … OR … FUHGEDDABOUDIT!!!!!!!!!!!!!!!!No bull: I’m 57 … and I believe that this is … THE Truth. NO SHIT.
321 Axiom: Never trust a “boss” with no toys in his/her office!
329 Heart of the Matter F2F. /K2K. / 1@T/R. F. A Heart of the Matter F2F!/K2K!/ *Freak to Freak/Kook to Kook/ One at a Time/ Ready.Fire!Aim.The hell with B2B. Try K2K!!!!That is, Kook 2 Kook. [Or, a pal says, F2F … Freak 2 Freak. Fine!] [Or, per me redux: W2W … Weirdo 2 Weirdo.]“They” say that no revolution has ever been concocted by more than a dozen people. I’m inclined to buy that.Hence the key to your Revolution [in HR, IS, Purchasing & Logistics] is those first recruits!Your Premier Fellow Kooks [Freaks, Weirdos]! Who will risk life & professional limb for this Very Cool [Kewl] idea which will change the world.Frankly, we’d rather not have a Vice President or Div. Gen. Mgr. aboard at first. They are subject to too bright a spotlight. We’d rather labor in the distant vineyards with young, passionate pioneers … who want to change the world … JUST FOR THE HELL OF IT.To be sure, once we’ve demo-ed the idea in a few places, we’ll go after a Rad/Kewl VP to become our Management Sponsor/Protector-from-the Forces-of-Evil. But for starters, the invisible, passionate ones are the keys.
332 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.
348 “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
349 19. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.” [Life’s a Bitch…]
350 “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)
351 20. Leaders … HONOR THE USURPERS … in Their Organizations!
352 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
374 29. Leaders LOVE RAINBOWS – for Pragmatic Reasons.
375 “Where do good new ideas come from. That’s simple. From differences “Where do good new ideas come from? That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.” Nicholas Negroponte
391 Sara Lawrence-Lightfoot, Respect “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say.”Sara Lawrence-Lightfoot, RespectArmy General Melvin Zais said it, in the most moving speech I’ve ever listened to: YOU MUST CARE.Sara Lawrence-Lightfoot’s book … RESPECT … is superb. Yet … THIS ONE THING … particularly stuck with me. You want to … MAKE A DIFFERENCE. Your ideas are wild. You buy my act: Recruit A Freak. Fine!But you … MUST CARE. Your FF [First Freak] is going out on a limb to support you. She will do so … ONLY … if you accord her your utmost respect.#1: HEY, WE’RE CHANGING THE WORLD HERE. #2: HEY, THIS STUFF IS PERSONAL … ABOUT WHO YOU AND I ARE AS HUMAN BEINGS.Please: Re-read the text of the slide.
400 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to 5%) Source: Jump Start Your Busioness Brain, Doug Hall
402 Message: Leadership is all about love 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.]
411 Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty control freaks.)
413 “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