1. Lockheed Martin ELECTRONICS PLATFORM INTEGRATION 31 January 2000

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

3. Microsoft = R.O.W. (II) Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg + McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats Source: Yastrow Marketing (through 11-23-99)

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

5. 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)

6. Forces at Work The Destruction Imperative!

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

8. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former co-chairman 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

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

10. “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 Systems

11. “R & D” Intel’s venture fund: 275 investments, $3.5B Source: Fast Company (12-99)

12. EcoNets/Internet Zaibatsus “The model is about partial acquisitions and ownerships that then form a whole. Each part has to have value separately, be able to raise capital separately, and motivate employees separately. Corporations of the past never had that.” Flip Filipowski, divine interVentures (Red Herring)

13. “The brick and mortars will die, no matter what. … So you have to take your best employees and best businesses and spin them off and just own 40 percent of everything that’s left. Do that and you survive.” Flip Filipowski, divine interVentures (Red Herring)

14. DYB.com*

15. *DestroyYourBusiness.com (GE)

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

17. [E.g.: Craig Venter/ Celera Genomics]

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

19. Brand Inside PSF 1: Brand Org!

20. 108 X 5 vs. 8 X 1* * 540 vs. 8

21. ERP, ECM, Web, Etc. IT’S THE GIANT SUCKING SOUND OF SLACK BEING EXTRACTED FROM THE GLOBAL ECONOMY!

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

23. Cemex and FDX!

24. CCC Information Services!

25. “Assetless Company” J.B.

26. 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.”

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

28. The “&-!!+#$% in the middle”* Jim Clark on Healtheon * ’twixt docs, patients and providers; $250B in waste; source: Michael Lewis, The New New Thing

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

30. R&D Outsourcing/ Big Pharma 3:1+ (70% now; 5% in 5 years) 1:2+ (5% now; 20% in 5 years) Source: IN VIVO

31. PSF 1.0 Professional Service Firm Conversion Kit / Release 1.0

32. PSF 1.0 Department Head to … Managing Partner, HR [IS, etc.] Inc.

33. “support function” / “cost center” / “bureaucratic drag” or … “Rock Stars of the ‘Age of Talent’ ”

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

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

36. Brand Inside PSF 2: Brand Work!

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

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

39. Kaiser: 4.15.29

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

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

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

43. “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)

44. 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

45. Characteristics of the “Also Rans” –“minimize risk” –“respect the chain of command” –“support the boss” –“make budget” Source: Fortune on “most admired global corporations”

46. Brand Inside PSF 3: Brand You!

47. 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

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

49. Personal “Brand Equity” Eval –My current Project is challenging me … –New things I’ve learned in the last 90 days include … –My public “recognition program” consists of … –I am known for … –Additions to my Rolodex include … –My resume is discernibly different from last year’s at this time …

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

51. R.I.P. IS IT... WOW!?

52. 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].

53. 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.

54. Seminar Y2K Message: Distinct … or Extinct!

55. Brand Inside PSF 4: Brand Talent!

56. Issue Y2K The Great War for Talent !

57. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” Warren Bennis & Patricia Ward Biederman

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

59. “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

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

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

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

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

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

65. Just Say “No” to “Grout”! Participant: “Don’t you need ‘grout’ between the tiles?” TP: “No!” [med staff, NFL Special Teams,waiters, PFCs, cymbals player, bit parts, waiters]

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

67. Talent War Y2K! –All out!/ Time consuming! –Never ending!/ Unwinnable! –Includes everybody!/ Everybody’s game! (“We’re all in sales.”) –Expensive! –Cool!/ WOW!/ Fun!/ Creative! –Strategic!/ Core competence!

68. Talent = Brand

69. Brand Outside = Brand Inside

70. Brand Outside Context: No “Commodities”!

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

72. 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

73. 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)

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

75. “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices, similar warranties and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

76. The “10X/10X” Phenomenon 10 Times Better/ 10 Times Less Different

77. “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” Jerry Garcia

78. “customer satisfaction” to “customer success” Source: GE Power Systems

79. Brand Outside Strategy 1 : Lead the Customer!

80. “The customer is a rear view mirror, not a guide to the future.” George Colony, Forrester Research “If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College

81. Early Customer Rejection Post-Its [12 years!] Chrysler Minivans VCRs Fax machines FedEx CNN Heart-assist pumps Etc. Source: Fortune

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

83. “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

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

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

86. Brand Outside Strategy 2 : Master E-Commerce!

87. $30,000,000. = ???

88. Dell’s Web sales … daily

89. 2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)

90. Tomorrow Today: Cisco! $7B of $10B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)

91. And Larry?

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

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

94. 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

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

96. “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

97. 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!

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

99. Web Strategy: GE Power Systems “Launch and Learn”/ 4 sites in 30 days

100. Change … Or Die! “Most of the brick and mortars look at the Internet as an add-on business … until they get a major scare. Then they either change or die. … You have to put all your heart and soul in that direction, the way Charles Schwab and Dell did.” Flip Filipowski, divine interVentures (Red Herring)

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

102. Brand Outside Strategy 3 : Design Rules!

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

104. 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

105. 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

106. 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

107. [ 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 that ends up expressing itself in successive outer layers of the product or service.” Steve Jobs]

108. Brand Outside Strategy 4 : It’s the Experience!

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

110. “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

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

112. 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

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

114. “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

115. Brand Outside BRAND POWER!

116. Brand? Distinction Excellence Emotional “Signature” Trustworthiness Consistency Shorthand

117. 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]

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

119. 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

120. Calling the Corporate Shrink! “Organizational Psychotherapy”/ WHO WE ARE!

121. “Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the company’s attitudes and values becomes the decisive parameter for success. It demands that you find out who you are as a company.” Jesper Kunde, Corporate Religion

122. 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

123. Brand = Special = Passion = Connection = Caring* * (Way) beyond “market research”

124. The Ten Rules of Radical Marketing CEO must “own” the marketing function! Hyper-lean Mktg. Dept. (No filters!) CEO hangs out with customers! Love + Respect your customers! Just Say No … to market research! Hire only passionate missionaries! Create a Community of users-customers! Emphasize one-to-one marketing tools! Celebrate craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

125. Brand Leadership Lead Out Loud!

126. ENTHUSIASM RULES!* “I am a dispenser of enthusiasm.” Ben Zander *TP on Bob Nardelli/GE Power Systems

127. Ann R.’s Gospel –Show up! –Know your message! –Put yourself at risk !

128. “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

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

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

131. THE END