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Benchmark Scotland Glasgow 25 May 2000. 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.: Wal*Mart = #8 in 2000.

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Presentation on theme: "Benchmark Scotland Glasgow 25 May 2000. 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.: Wal*Mart = #8 in 2000."— Presentation transcript:

1 Benchmark Scotland Glasgow 25 May 2000

2 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.: Wal*Mart = #8 in 2000

3 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)

4 “Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner than a strand of hair – combines a healthy human cell with an electronic circuitry chip.” AP/AOL/02-00

5 No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

6 Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company (New York, 5-99)

7 64/24

8 Goal?

9 Welcome to the Land of the True Believers! “We have the ability to turn the economy upside down, to enhance lives, and to drive civilization forward.” Michael Saylor, MicroStrategy

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

11 Jacques’ New New Ford Ford + MSN CarPoint Ford + Yahoo! Ford + Oracle Ford + HP/MCIWorldcom Etc. Etc.

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

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

14 S.A.V.

15 T.T.D./True or False: “incrementalism” VERSUS “innovation”?

16 Notes Page This is a daunting issue. There is no “right answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention. Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!

17 Seminar Y2K Brand Everything : Distinct or Extinct!

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

19 “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

20 “Talent” and a $2T enterprise??????

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

22 “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

23 Valley Exec on Cisco Strategy: “Maybe you overpay for a company, but it’s the pick of the litter and you haven’t frittered away boatloads on R&D”* *See also Fast Company on “ ‘Built to flip’ vs. ‘Built to last’ ”

24 “R & D” Intel’s venture fund: 275 investments, $8B Source: Fast Company, eCompany

25 Net World! Act now. Analyze later. Avram Miller

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

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

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

29 Brand Inside Brand Org!

30 108 X 5 vs. 8 X 1* * 540 vs. 8

31 And Now the Equivalent … White Collar Revolution!


33 Cemex and FDX!

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

35 “Assetless Company” J.B.

36 RR on 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.”

37 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

38 [ Incidentally … CEO Jeff Arnold Age: 30 First Start-up: Age 24]

39 SoftWatch (MS) “Manage relationships across the healthcare continuum”/ Amir Kishon Establish e-relationships with customers/retain customers/collect data Patients record info + receive feedback/ online access to nurses Community with others with MS Etc. Source: Start-Up

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

41 12/31/00 (per Newsweek 04.24.00) 75% of U.S. universities will have on-line offerings/ 5.8 million students “Unbundling” profs’ jobs (star lecturer, facilitator)/ Repackage “content” as multi-media “event” AAUP is angry! (Good news!) 355 studies: Equal results! (and one teachers union study that disagrees!)

42* *Arizona Democratic primary, etc.

43 Builders, Owners, Architects, Contractors, Suppliers $4T industry 5,300 commercial bldg. projects’ specs on-line; +70 per day

44 “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

45 These are … L.A.D.T.I.R.S.* *Life-and-death-total-industry-reinvention- struggles

46 So … What will be the Basic Building Block of the New Org Unit?

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

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

49 [NAPM Redux: Welcome to the Y2K New Orleans Jazz and Real Cool Purchasing Dudes Festival!]

50 NAPM: Not “Purchasing”! NAPM: Not “Supply Chain Mgt.” NAPM = TE/IR!* * T otal E nterprise/ I ndustry R einvention!

51 PSF 1.0 Professional Service Firm Conversion Kit / Release 1.0

52 The “7Ps” of PSF 1.0 P rojects! P assion! P rovocation! P artnership! P olitics! P rofessionalism! P erformance!

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

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

55 Seminar Y2K/Brand Inside Message: Distinct … or Extinct!

56 “How long does ‘culture change’ take?”

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

58 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!

59 Brand Inside Brand Work!

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

61 But Does It Matter ???? “On time, on budget … who cares?” anon. seminar participant (4/99)

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

63 WOW Project Anatomy I. Create! II. Sell! III. Implement! IV. Exit!

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

65 Measures –WOW! –Beauty! –Raving Fans! –Impact!

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

67 WOW Project “Acid Test” Can you explain it - with zest - to your 14-year-old?

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

69 Sell, Sell, Sell! Master “The Pitch”! Repeat: “I am a salesperson!”

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

71 “I view models and prototypes as the battleground for thoughts and behaviors.” Michael Schrage

72 “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

73 Prototyper’s Laws Define a small, practical test of something on a page or less of text. Now. Gather “found” materials … on the [very] cheap. Find a/one partner-“customer” who’ll provide a test site. Set a very tight deadline of about 5 days for the next concrete step. Conduct the test! Debrief A.S.A.P. Set the next test date. Now. [No more than 5 days hence.]

74 Implementation Secret No. 1: Forget “selling up”! Go horizontal: Find a (one!) “line” ally in “the Boonies”! Secret No. 2: “Powerless” allies are Cool! Secret No. 3: Become a Prototyping Maniac! Secret No. 4: Embrace Politics / “Community Organizing”! Secret No. 5: Passion Rules! Get your story in shape!

75 SOOOO … HOW MANY OF YOUR COLLEAGUES ARE “BACK HOME” AT WORK ON UNMISTAKABLY … WOW* PROJECTS! * WOW = Will be remembered fondly/ bragged about 5+ years from now


77 “To Do”: Now! –List all projects –Carefully describe a “WOW Outcome” for you and the Client –Score (!) all projects on WOW, Beauty, Impact, Raving Fan-hood –Pick one project with a high combined score –Draft a one-page New Description that emphasizes WOW, Beauty, etc. –Circulate and edit … for three days –Reduce to 5 bullet points

78 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

79 1) Turn ignition key. 2) Shift into drive. 3) Press foot firmly on the throat of mediocrity. Source: Mercedes ad

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

81 Brand Inside Brand You!

82 “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

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

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

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

86 Resume = Your Annual Report* * New York Times Magazine [05.14]

87 Ike’s World Book Page And Yours?

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

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

90 How About It? Replace your current evaluation process with Yellow Pages ads.]

91 They “Get it”?! –stone mason –electrician –plumber –tiler –cabinet maker –contractor –blacksmith –well driller –blaster –sheep shearer –etc.

92 Icon Woman … –Totally turned on by her work! –“It” matters / a WOW Project! –“It” is … COOL! –“It” is … BEAUTIFUL! –She is … in your face! –She is an … adventurer! –She is … CEO of her own life!

93 Icon Woman … - She is … at least … a little funky! –Her curiosity is … insatiable! –She thinks screwups are … as normal as breathing! –She hangs out with some … seriously rad Dudes! –She is not God. She is not Bionic Woman. She is … determined to make a damned difference!

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

95 Icon Woman Meets the Web … –submits resume on the Web –recruited on the Web –hired on the Web –trained on the Web –creates and conducts projects with virtual teams on the Web –manages project and client follow-up on the Web –manages career/reputation-building on the Web

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

97 R.I.P. 10 … Major job change [new area of concentration]; major offsite educational investment; extensive sabbatical [oddball learning experience of > 2 months]; exceptional community project [presidency of fundraising drive, run for school board].

98 R.I.P. 5... Extensive course work in oddball area of passionate interest; major off- the-job activity [community involvement, learn to play the cello, study Chinese]. 1 … Company training, as directed.

99 Your R.I.P.: IS IT … FORMAL? IS IT... WOW!?

100 R.I.P. Use by yourself. Use with your mates. Use [quantitatively?] as a measure of departmental/ P.S.F. renewal. Use in formal eval process.

101 Training Y2K Anytime, anywhere! Whatever! Concocted by the employee [“Training Account”]

102 H.R. to H.E.D. ??? Human Enablement Department

103 “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”

104 Women and new-economy management …

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

106 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

107 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 (5/2000)

108 [ … and women are Market Opportunity #1]

109 Brand Inside Brand Talent!

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

111 Tomorrow’s Headlines “Molecular biologists are up 3 points, economists down 1/4, in moderate trading” futureWEALTH, Stan Davis and Christopher Meyer

112 Issue Y2K The Great War for Talent!

113 There is no “talent shortage” … if … you are a GPTW* *Great Place To Work

114 Alan Kay on PARC’s Bob Taylor “He was a connoisseur of talent.”

115 A Connoisseur of Talent … –Spends time on Talent! –Becomes a student of Talent! –Puts Talent “on the agenda”! –Practices D.I.Y. –Uses Plain English! (If you want “sunny” … ask for “sunny”!) –Creates Workspaces that foster energy, entrepreneurship and creativity! –Recruits from oddball places!/ Recruits Oddballs!

116 Talent war, Web-speed! Every resume or employment question that comes to Lucent via the Web gets answered in 30 minutes or less. [24/7.] Red Herring [06.00], on Lucent Director of Recruitment Jim Baughman

117 A Connoisseur of Talent … –Recruits M.I. (Gardner: Logical-mathematical, linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, interpersonal-others) –Recruits arts! –Becomes de facto C.D.O. (Chief Diversity Officer) –Turns the pay scale upside down!/ Pays Talent! – Rewards & Promotes all on Talent Development Skills! –Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

118 “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

119 “He grew his hair long, played guitar in a rock band, chased girls, got into trouble. At age 17 he was flogged by his house master, who described him as ‘the most difficult boy I’ve ever had to deal with.’ ”

120 Solution? Ritalin [“a chemical virtually identical to cocaine”/Reason magazine] Or …

121 Elect Him Prime Minister Tony Blair* *talk/May 2000

122 “Whoever is the most impertinent has the best chance.” W.A. Mozart

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

124 “How could a nation [Germany] fall so far so fast? Simple. An epidemic of obedience. The greatest scourge of mankind.” Pavel Kohout, The Widow Killer

125 Yes! Director of Bringing in the Really Cool People

126 All You Need to Know? Chief Evangelist For Really Neat Stuff Director Of Bringing In The Really Cool People


128 Talent = Brand

129 Brand Outside = Brand Inside

130 Brand Outside Context: No “Commodities”!

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

132 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

133 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

134 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)

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

136 “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

137 The “10X/10X Phenomenon” 10 Times Better/ 10 Times Less Different

138 “When we did it ‘right’ it was still pretty ordinary.” Barry Gibbons on “Nightmare No. 1”

139 Pretzel Crumb-less-ness Plus … “The Ritz Carlton Experience enlivens the senses, instills well-being and fulfills even the unexpressed wishes and needs of the guest.” from the Ritz Carlton Credo

140 “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

141 [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

142 Message: The “distributor” is dead. Long live the value- added, knowledge- intensive “business partner.”

143 TP’s “Mega-marketing-trends” Rapidly aging population! Health fanaticism! Environmental concerns! Freaky independence! Women rule!

144 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!


146 Brand Outside Strategy 1 : Lead the Customer!

147 “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

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

149 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

150 Brand Outside Strategy 2 : Use E-Commerce to Re-invent the Business!

151 Dell’s Web sales … daily ?

152 $35,000,000.

153 2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)

154 Tomorrow Today: Cisco! 90% of $14.4B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)

155 Cherry Picking Vertical Markets $370B; sellers pay $5K to $8K for “storefront”; 5% to 10% cut Hook: community services (database, catalogs, forums, industry job bank, etc.)


157 B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters 1-26-00) T

158 GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B) I.P.O.

159 Goal? Drive profits to zero!* *Remember AMR and “dynamic pricing.”

160 Paradox? Community Services/V.A. Waste Extraction

161 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

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

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

164 The Supply Side … The Age of the Choiceboard The War of the Choiceboards Source: Adrian Slywotzky, HBR 1-2/2000 [<1%]

165 Patricia Seybold’s “Basics”: The E-Customer Bill of Rights Don’t waste my time! Remember who I am! Make it easy for me to order and procure service! Customize your products and services for me! Source:

166 “In the network economy, the Website becomes the company’s primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post- sales support all rolled into one.” Jakob Nielsen, Designing Web Usability

167 “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

168 Red Herring (01/00) 75% of online shoppers don’t complete their purchase!

169 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!

170 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”

171 “Even if executives of established businesses grasp the impact of new technologies … they still face a massive competitive disadvantage precisely because they are incumbents. … They do complex financial calculations and get bogged down in internal political debates. Insurgents have no such inhibitions.” Philip Evans & Thomas Wurster, Blown to Bits

172 “ … if they set up a completely independent organization and let that organization attack the parent.” Clayton Christensen, The Innovator’s Dilemma

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

174 [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]

175 There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!

176 No Room for “Competent”* Sorts Beer Wholesalers Personal Trainers [FitLinxx] Financial Planners Car Dealers * LVA, “M”VA … vs. HVA [Web-enhanced]

177 Web Strategy: GE Power Systems “Launch and Learn” (4 sites in 30 days)

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

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

180 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

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

182 [ 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]

183 Getting Right Down to Brass Tacks … Bricks & Mortar? Clicks & Mortar? All Clicks All the time?




187 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

188 Brand Outside Strategy 3 : Think Global!

189 Rule #1 If “it” is [truly] good … then it’s good enough for … THE WORLD.

190 Rule #2 There’s no such thing as “too small to be global.”

191 Rule # 3 When? Now.

192 Rule #4 Hang out … vigorously!

193 Rule #5 Glom onto a [modest-sized] partner … who loves/ “gets” you!

194 Rule #6 Tailor!! [But don’t give away the store.]

195 Rule #7 Phil Crosby notwithstanding, you’ll not [likely] “get it right the first time”!

196 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

197 Brand Outside Strategy 4 : Women Rule!

198 ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.

199 $3.3T + $1.5T = $4.8T* * Larger than Japan!

200 Most Under-reported story! 9M*/28M(1 of 4)/$3.6T [> Germany] * 400K in ’72; 132% since ’92 Sources: NFWBO, Cognetics, Business Wire (030600)

201 48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

202 Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week (11-99)

203 Yeow! 1970 … 1% 2000 … 50%

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

205 Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

206 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.”

207 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

208 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

209 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

210 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

211 [ It’s Simple … Women are more thoughtful and more deliberate than men!]

212 Not!! “Year of the Woman”

213 Enterprise Reinvention! Recruiting Hiring/Rewarding/ Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF!

214 “What kind of car does Mommy want?”

215 “I didn’t know [company] were giving company cars to secretaries.” Source: UK financial services CEO, 12/99

216 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!”

217 Not a Morality Play! “It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We are marketing to women entrepreneurs because it is a huge opportunity.” Cherie Piebes

218 Wanna see my “porn” collection?

219 “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

220 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

221 Brand Outside Strategy 5 : Design Rules!

222 And Tomorrow … “Fifteen years ago companies competed on price. Now It’s quality. Tomorrow it’s design.” Robert Hayes

223 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

224 “Design is treated like a religion at BMW.” Fortune (10/98)

225 Drop-dead Charm! “The new Beetle fails at most categories. The only thing it doesn’t fail in is drop-dead charm.” Jerry Hirshberg, Nissan Design International

226 Object of Desire! “Every now and then, a design comes along that radically changes the way we think about a particular object. Case in point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.” Katherine McCoy, Michael McCoy, Illinois Institute of Technology

227 Design as Soul “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

228 Check Out the Language: “Tomorrow it’s design …” “Design is the only thing …” “Design is … religion...” “Drop-dead charm …” “Object of desire …” “Fundamental soul …”

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

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

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

232 Graceful language!


234 Hold a “Beauty Contest!” 1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim form. 2. Rate it on a 1 to 10 scale (1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity. 3. Repeat … every 15 days.

235 Campaign Y2K! Plain, energetic, sparkling English!


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

238 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

239 Brand Outside Strategy 6 : It’s the Experience!

240 “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

241 “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

242 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

243 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

244 “This is the end of the pure product era. For instance, car makers are beginning to understand that the car is a platform for delivering services that drive the customer experience.” Carly Fiorina, HP @ Comdex ’99

245 Marketing Aesthetics “managing aesthetics experiences” … “aesthetics strategy” … “marketing of sensory experiences that contribute to the organization’s or brand’s identity” … “mapping strategic vision to sensory stimuli” Source: Marketing Aesthetics, Bernd Schmitt & Alexander Simonson

246 Look + Feel + Taste + Touch + Sound + Smell + Texture + Color + Typeface + Etc. = EXPERIENCE* * Bernd Schmitt & Alexander Simonson, Marketing Aesthetics

247 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

248 Brand Outside BRAND POWER!

249 Brand It! Now, More Than Ever! “The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.” Gillian Law and Nick Grant, Management [New Zealand]

250 No Room for Brands? Nike Saturn CNN America Online Charles Schwab Starbucks The Gap Intel Etc.

251 Brand = Trust! “Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.” The Economist

252 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

253 “Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and diversity, choices become increasingly informed by belief. [Consumers] want to know who is behind the products that they buy. They want to know the company. They want to know what you think.” Jesper Kunde, Corporate Religion

254 Brand Power: Calling the Corporate Shrink! “Organizational Psychotherapy”/ WHO WE ARE!

255 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.”

256 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 Maine

257 [The “Network” is the Brand! You (B2Bers) are in the Brand Building business!]

258 “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

259 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)

260 Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Think Global! S4: Women Rule! (and the elderly) S5: Design Rules! (too) S6: It’s the Experience! Net: Glorious Age of the BRAND!

261 Brand Leadership Passion Rules!

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

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

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

265 Talent “War,” Marketplace “War” “The successful company has to create an environment that imbues its employees with a sense of passion.” Joe Nocera, eCompany, on David Pottruck

266 “The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in recruits.” Burke Stinson, AT&T


268 [Message to NAPM: You are Re-invention Evangelists!]

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

270 “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


272 How sweet it is !

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

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