1. Global Entrepreneurship and Innovation Conference Kutztown University Community Presentation/04.06.00

2. The following presentation was given to the Kutztown community on the evening of April 6, 2000.

3. 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.: Wal*Mart = #8 in 2000

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

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

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

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

8. S.A.V.

9. Forces @ Work The Destruction Imperative!

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

11. “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

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

13. “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

14. C.E.O. to C.D.O.

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

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

17. 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)

18. Brand Inside Brand Org!

19. And Now the Equivalent … White Collar Revolution!

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

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

22. 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.”

23. The “&-!!+#$% in the middle”* Jim Clark on Healtheon/WebMD * ’twixt docs, patients and providers; $300B in waste (?); source: Michael Lewis, The New New Thing

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

25. Brand Inside Brand Work!

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

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

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

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

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

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

32. “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)

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

34. 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)

35. Brand Inside Brand You!

36. 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

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

38. 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 …

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

40. 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!

41. 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!

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

43. 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

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

45. Brand Inside PSF 4: Brand Talent!

46. Issue Y2K The Great War for Talent!

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

48. “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

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

50. The NAESP …

51. 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

52. 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!

53. 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!

54. 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]

55. TP’s Ideal Job: Head of Housekeeping!

56. Talent = Brand

57. Brand Outside = Brand Inside

58. Brand Outside Context: No “Commodities”!

59. 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

60. 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

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

62. “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

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

64. Brand Outside Strategy 1 : Lead the Customer!

65. “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

66. “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

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

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

69. 2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)

70. Dell’s Web sales … daily?

71. $35,000,000.

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

73. 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

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

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

76. “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

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

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

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

80. 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

81. Brand Outside Strategy 3 : Women Rule!

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

83. 48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

84. 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)

85. $3.3T + $1.5T = $4.8T* * Larger than Japan!

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

87. Yeow! 1970 … 1% 2000 … 50%

88. OPPORTUNITY NO. 1!

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

90. 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.”

91. 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

92. Not!! “Year of the Woman”

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

94. “What kind of car does Mommy want?”

95. 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

96. Brand Outside Strategy 4 : Design Rules!

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

98. 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

99. 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

100. 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

101. Brand Outside Strategy 5 : It’s the Experience!

102. “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

103. “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

104. 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

105. 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

106. “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

107. Brand Outside BRAND POWER!

108. 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]

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

110. 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

111. “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

112. 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)

113. Brand Leadership Lead Out Loud!

114. How sweet it is !

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

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

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

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

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