Tom Peters’

Re-Imagine!
Business Excellence
 in a Disruptive Age
   Edinburgh/21April2004
“In Tom’s world, it’s always
better to try a swan dive and
  deliver a colossal belly flop
 than to step timidly off the
b...
Slides at …


tompeters.com
I. NEW
BUSINESS.
   NEW
CONTEXT.
“Uncertainty is the only thing to
     be sure of.” —Anthony Muh,
 head of investment in Asia, Citigroup Asset Management
...
1. All Bets
   Are Off.
Jobs
 Technology
 Globalization
War, Warfighting
  & Security
Jobs
New Technology
 Globalization
   Security
“14 MILLION service
jobs are in danger of
   being shipped
  overseas” —The Dobbs
 Report/USN&WR/11.03/re new UCB study
“Income Confers No
 Immunity as Jobs
 Migrate”
        —Headline/USA Today/02.04
“One Singaporean worker
  costs as much as …

     3 … in Malaysia
     8 … in Thailand
     13 … in China
     18 … in In...
“Thaksinomics” (after Taksin
   Shinawatra, PM)/ “Bangkok
 Fashion City”/ “managed asset
 reflation” (add to brand value o...
“The proper role of a healthily
functioning economy is to destroy
    jobs and to put labor to use
   elsewhere. Despite t...
“There is no job
that is America’s
 God-given right
anymore.”      —Carly Fiorina/ HP/
      01.08.2004
In Store: International Equality, Intranational Inequality
“The new organization of society implied by the triumph
   of i...
“WHAT ARE PEOPLE
  GOING TO DO WITH
 THEMSELVES?” —Headline/
Fortune/ 11.03 (“We should finally admit that we do not
 and ...
Jobs
Technology
 Globalization
   Security
<1000A.D.: paradigm shift: 1000s of years
             1000: 100 years for paradigm shift
                  1800s: > prior...
“I genuinely believe we
 are living through the
  greatest intellectual
  moment in history.”
     Matt Ridley, Genome
“A California biotechnology
    company has put the entire
sequence of the human genome
     on a single chip, allowing
 r...
Sequenom/David Ewing Duncan/Wired11.02
“Sequenom has industrialized the SNP [single
   nucleotide polymorphisms] identific...
Jobs
  Technology
Globalization
   Security
“Asia’s rise is the economic event
of our age. Should it proceed as it
 has over the last few decades, it
  will bring the...
“The world has arrived at a rare
  strategic inflection point where
nearly half its population—living in
China, India and ...
China
Roars!
1990-2003: Exports 8X
 ($380B); 6% global exports
 2003 vs. 3.9% 2000; 16% of
Total Global Growth in 2002.
 Source: “China...
1998-2003: 45,000,000 layoffs in
state sector; offset by $450B in
  foreign investment; foreign
 companies account for 50+...
50% of output from private
firms, 37% from state-owned
   firms; 80% of workforce
  (incl. rural) now in private
         ...
Population growth = 1%;
   two-thirds of housing
  privately owned, 90% of
urban Chinese own a home
     (vs. 61% in Japan...
200 cities with
       >1,000,000
      population.
Source: “China Takes Off”, David Hale & Lyric Hughes
          Hale/Fo...
2003: China-Hong Kong leading
producer in 8 of 12 key consumer
 electronic product areas (>50%:
 DVDs, digital cameras; >3...
“Going Global: Flush with
  billions in foreign reserves,
China is embarking on a buying
 spree” —Cover/ Newsweek/ 03.01.0...
World economic
output: U.S.A., 21%;
EU, 16%; China, 13%
  (2X since1991)
  Source: New York Times/12.14.2003
“With a Small Car,
 India Takes Big
 Step Onto Global
 Stage”—Headline, p. 1, WSJ, 02.05.2004
Indian GDP/1990-2002: Ag,
34% to 21%; services,
     40% to 56%
      Source: The Economist/02.04
Level 5 (top)
ranking/Carnegie Mellon
  Software Engineering
    Institute: 35 of 70
 companies in world are
        from ...
“Forget India, Let’s
 Go to Bulgaria”                        —Headline,
BW/03.04, re SAP, BMW, Siemens et al. “near-shorin...
“CLONING COLLEGE:
South Korea’s biomedical
researchers, unhampered
   by politics, do world-
  class research on the
   ch...
Jobs
Technology
Globalization
 Security
“This is a dangerous world and
  it is going to become more
          dangerous.”
“We may not be interested in
chaos but c...
“The world’s new dimension
  (computers, Internet, globalization,
instantaneous communication, widely
     available instr...
All Bets
Are Off!
“There will be more
 confusion in the
business world in the next
decade than in any decade in
history. And the current pac...
“We are in a
brawl with no
   rules.”
   Paul Allaire
S.A.V.
“Strategy meetings held once
or twice a year” to “Strategy
meetings needed several
     times a week”
 Source: New York Ti...
“How we feel about the evolving future tells us who we
 are as individuals and as a civilization: Do we search
  for stasi...
Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.
2. Disrespect for Traditi...
It is the foremost task—
    and responsibility—
   of our generation to
re-imagine our enterprises,
          private
and...
“Let’s compete—by training the
 best workers, investing in R & D,
erecting the best infrastructure and
 building an educat...
“In a global economy, the
     government cannot give
 anybody a guaranteed success
 story, but you can give people
  the ...
Age of Agriculture
          Industrial Age
Age of Information Intensification
 Age of Creation Intensification
 Source: M...
“The Creative Class derives its
identity from its members’ roles as
 purveyors of creativity. Because
   creativity is the...
The Winning Edge: Peters’ Big6
1. Research-Innovation
2. Entrepreneurial Attitude &
   Support (Especially from Capital Ma...
How Nations Become Wealthy
1. Property rights
2. Scientific rationalism
3. Capital markets
4. Fast and efficient communica...
2. The
Destruction
Imperative.
“Wealth in this new regime flows
   directly from innovation, not
optimization. That is, wealth is not
 gained by perfecti...
“It is generally much
    easier to kill an
  organization than
       change it
    substantially.”
    Kevin Kelly, Out ...
C.E.O.
  to


C.D.O.
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
     in ’87; 18 in ’87 F100; 18 F100
“survivors” un...
“Mr. Foster and his McKinsey
    colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. co...
“Good management was the
 most powerful reason [leading
 firms] failed to stay atop their
 industries. Precisely because t...
Forget>“Learn”
“The problem is never how
   to get new, innovative
 thoughts into your mind,
but how to get the old
     o...
Success Kills!

“The more successful a
company, the flatter its
   forgetting curve.”
    — Gary Hamel and C.K. Prahalad
“Conglomerates
don’t work.” —James
Surowiecki, The New Yorker (07.01.2002)
“MERGERS: Why Most Big
  Deals Don’t Pay Off. A
 BusinessWeek analysis
shows that 61% of buyers
  destroyed shareholder
  ...
“When asked to name just one big merger
 that had lived up to expectations, Leon
   Cooperman, former cochairman of
   Gol...
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
      Peter J...
Market Share, Anyone?

— 240 industries; market-share leader
 is ROA leader 29% of the time
— Profit / ROA leaders: “aggre...
“The $58B hostile bid by Sanofi-Synthelabo for
  Aventis has been greeted skeptically, as has
  the news that Novartis may...
Winning the Merger Game Is Possible
            --Lots of deals
             --Little deals
           --Friendly deals
  ...
TP on Acquisitions
1. Big + Big = Disaster. (Statistically.)
   (There are exceptions; e.g., Citigroup.)
2. Big (GE, Cisco...
No Wiggle Room!

“Incrementalism
 is innovation’s
 worst enemy.”
     Nicholas Negroponte
Just Say No …

 “I don’t intend to be
known as the ‘King of
   the Tinkerers.’ ”
 CEO, large financial services company
“Beware of the tyranny of
 making Small Changes
 to Small Things. Rather,
make Big Changes to Big
 Things.” —Roger Enrico,...
“Perfection is achieved only by
  institutions on the point of
           collapse.”
         — C. Northcote Parkinson
2A.   Yo, Jim . Or:

 The Case for …

Technicolor!
“intrepid, unprincipled,
 reckless, predatory, with
   boundless ambition,
civilized in externals but a
     savage at hea...
Herman Melville on JPJ:
   “intrepid, unprincipled,
  reckless, predatory, with
     boundless ambition,
 civilized in ext...
Huh?
 “Humility: The Surprise Factor in
Leadership … bosses with Gung-
ho Qualities and Charisma May Be
    Out of Fashion...
Jim & Tom.
Joined at the

hip.   Not.
I. Good to Great
II. Built to Last
III. Quiet, Humble Leaders
I. Good to Great
II. Built to Last
III. Quiet, Humble Leaders
Good to Great: Fannie Mae …
 Kroger … Walgreens … Philip
Morris … Pitney Bowes … Abbott
… Kimberly-Clark … Wells Fargo
SET
Great Companies …

THE AGENDA.
         (Period.)
AGENDA SETTERS: “Set the Table”/
    Pioneers/ Questors/ Adventurers
 US Steel … Ford … Macy’s … Sears …
  Litton Industri...
I. Good to Great
II. Built to Last
III. Quiet, Humble Leaders
Built to Last v. Built to Flip
 “The problem with Built to Last is that it’s a
   romantic notion. Large companies are
inc...
Warren Bennis & Patricia Ward Biederman/

        Great
  Organizing Genius:


 Groups Don’t
Last Very Long!
“The difficulties … arise from the inherent conflict
 between the need to control existing operations and
 the need to cre...
“The corporation as we know it,
 which is now 120 years old, is
not likely to survive the
next 25 years. Legally and
    f...
I. Good to Great
II. Built to Last
III. Quiet, Humble Leaders
Huh?
 “Quiet, workmanlike, stoic
leaders bring about the big
   transformations.”--JC
Huh?
 “Humility: The Surprise Factor in
Leadership … bosses with Gung-
ho Qualities and Charisma May Be
    Out of Fashion...
Wellington
  Nelson
  Disraeli
 Churchill
Montgomery
 Thatcher
“Humble” Pastels?
     T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin
              A. Lincoln/U.S. Grant/W.T. She...
“You can’t behave in a calm,
rational manner. You’ve got to
  be out there on the lunatic
       fringe.” — Jack Welch,
  ...
“Roosevelt’s duplicity, Churchill’s
  self-absorption” … “We are all
worms. But I do believe that I am a
 glow-worm.” (WSC...
“a vainglorious self-
promoter spoiling for
 a fight”
        —Arthur Koestler on Galileo
“In my experience,
   all successful
 commanders are
  prima donnas,
  and must be so
 treated.” —George S. Patton
Audie Murphy was the most
 decorated soldier in WW2.
He won every medal we had
to offer, plus 5 presented by
 Belgium and ...
… the Good
Conduct medal.
Jim Collins vs. Michael Maccoby

    “quiet, workmanlike, stoic”
                 vs.


“larger-than-life leaders”/ “egois...
“In Tom’s world it’s always
     better to try a swan
   dive and deliver a colossal
belly flop than to step timidly
     ...
The Re-imagineer’s Credo … or,
               Pity the Poor Brown*

           Technicolor Times demand …
   Technicolor L...
“When it comes to transformative technologies,
  overoptimistic investors are actually working for the
 common good—even i...
“In Italy for 30 years under the Borgias
   they had warfare, terror, murder,
       bloodshed—and produced
     Michelang...
II. NEW
BUSINESS.
NEW TECH.
3. IS/ IT/ Web:
“On the Bus” or
 “Off the Bus.”
100   square feet
“Invisible Supplier Has
    Penney’s Shirts All
 Buttoned Up: From Hong
   Kong, It Tracks Sales,
 Restocks Shelves, Ships...
“Our entire facility is digital. No paper, no film, no
 medical records. Nothing. And it’s all integrated—from the lab to
...
“MIT Everywhere: EVERY
  LECTURE, EVERY QUIZ, ALL
 ONLINE, FOR FREE. MEET THE
GLOBAL GEEKS GETTING AN MIT
  EDUCATION, OPE...
“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made
one of the most fateful military calls of the 21st ...
“The mechanical speed of combat
 vehicles has not increased since
Rommel’s day, so the difference is
all in the operationa...
e-piphany

epicurious.com
“flash mobs” (!)
“Ebusiness is about rebuilding
the organization from the ground
  up. Most companies today are not
   built to exploit the...
Case:   CRM
Amen!

“The Age of the
Never Satisfied
  Customer”
    Regis McKenna
“CRM has, almost
universally, failed
   to live up to
 expectations.”
     Butler Group (UK)
No! No! No! FT: “The aim [of
CRM] is to make customers
 feel as they did in the pre-
electronic age when service
   was mo...
CGE&Y (Paul Cole): “Pleasant
Transaction” vs.“Systemic
Opportunity.” “Better job
of what we do today” vs. “Re-
      think...
Here We Go Again: Except It’s Real This Time!

   Bank online: 24.3M (10.2002); 2X Y2000.

Wells Fargo: 1/3rd; 3.3M; 50%
 ...
IS/IT   is   strategy!
5% F500 have CIO on Board: “While some
of the world’s most admired companies—
  Tesco, Wal*Mart—are transforming the
     ...
4. The White
    Collar
Revolution.
Steel: 75,000,000 tons in
 ’82 to 102,000,000 tons in
’02. 289,000 steelworkers
       in ’82 to 74,000
    steelworkers i...
E.g. …

Jeff Immelt: 75% of “admin, back
 room, finance” “digitalized” in




         3          years.

         Source:...
“A bureaucrat is an
    expensive
    microchip.”
  Dan Sullivan, consultant and
       executive coach
Deep Blue Redux*: 2,240
                    EKGs
 … 1,120 heart attacks.
Hans Ohlin          (50 yr old chief of coronary ...
“Organizations will still be
critically important in the world,
     but as ‘organizers,’ not
     ‘employers’!” — Charles...
“Don’t own nothin’ if
 you can help it. If
 you can, rent your
       shoes.”
         F.G.
“P&G Hires Out
Employee Services to
IBM” —Burlington Free Press/09.10.03/
 on IBM’s 10-year, $400M contract with P&G
(P&G ...
Ford: “Vehicle                            brand
owner” (“design, engineer, and
  market, but not actually make”)

  Source...
III. NEW
BUSINESS. NEW
    VALUE
 PROPOSITION.
5. The “PSF
  Solution”:
 The Professional
Service Firm Model.
Sarah:“ Daddy, what
     do you do?”

 Daddy:   “I’m a ‘cost
         center.’ ”
So what will be the
  Basic Building
   Block of the
    New Org?
Every job done in
W.C.W. is also
done “outside” …
   for profit!
Answer: PSF!
   [Professional Service Firm]
   Department Head
             to …

Managing Partner,
  HR [IS, etc.] Inc.
TP to HRMAC:   You are the …
   Rock Stars
  of the Age of
     Talent!
DD$21M
Dept. Head I = Sports G.M.

   Dept. Head II = V.C.
eHR*/PCC**
      *All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR
      ...
Model PSF …
(1) Translate ALL departmental
     activities into discrete
     W.W.P.F. “Products.”
(2) 100% go on the Web.
(3) Non-awe...
“Typically in a mortgage company or
     financial services company, ‘risk
management’ is an overhead, not a revenue
 cent...
6. The Heart of the Value
Added Revolution: PSFs
    Unbound/ The
      “Solutions
     Imperative.”
Base Case: The
Sameness Trap
“While everything may
       it is also
be better,
  increasingly
   the same.”
 Paul Goldberger on retail, “The Sameness ...
“Customers will try ‘low cost
providers’ … because
                  the
  Majors have not
given them any clear
   reason ...
“When we did it
‘right’ it was still
pretty ordinary.”
Barry Gibbons on   “Nightmare No. 1”
Fight ’til Death!
“I thought, ‘What a dreadful mission I have in life.’
   I’d love to get six-thousand restaurants up to
...
“The ‘surplus society’ has a surplus of
    similar companies, employing
     similar people, with similar
 educational ba...
“Companies have defined
 so much ‘best practice’
that they are now more or
      less identical.”
 Jesper Kunde, Unique No...
“We make over three new
product announcements a
  day. Can you remember
them? Our customers
        can’t!”
        Carly ...
09.11.2000: HP bids
$18,000,000,000
           for
PricewaterhouseCoopers
  consulting business!
“These days, building
 the best server isn’t
  enough. That’s the
    price of entry.”
   Ann Livermore, Hewlett-Packard
Systems
 Gerstner’s IBM:

   Integrator of
 choice. Global Services:
   $35B. Pledge/’99: Business
Partner Charter. 72 str...
“Customer Satisfaction” to
     “Customer Success”
   “We’re getting better at [Six
 Sigma] every day. But we really
need ...
Keep In Mind:   Customer
 Satisfaction
versus          Customer

   Success
E.g. …
 UTC/Otis + Carrier:
boxes to “integrated
 building systems”
Is There a There There: The Ericsson Case
1. 50+% Mfg to Solectron/Flextronics
2. Substantial R&D to India
3. Division for...
Flextronics
   --$14B; 100K employees; 60% p.a. growth
                   (’93-’00)
      -- “contract mfg” to EMS/Electro...
“UPS wants to take over the
sweet spot in the endless loop
  of goods, information and
 capital that all the packages
    ...
“SCS”/Supply Chain
Solutions: 750 locations;
 $2.5B; fastest growing
division; 19 acquisitions,
     including a bank
    ...
“No longer are we only an
insurance provider. Today,
    we also offer our customers the
 products and services that help ...
“ ‘Architecture’ is becoming
 a commodity. Winners will
   be ‘Turnkey Facilities
Management’ providers.”
          SMPS E...
Omnicom:   60%              (of
 $7B) from marketing services
And the Winners Are …

Televisions –12%
Cable TV service +5%
Toys -10%
Child care +5%
Photo equipment -7%
Photographer’s f...
IBM/Q3/10.15.03/Rev: +5%
Services/Consulting: +11%
      Software: +5%
      Hardware: -5%
        PCs: -2%
 Technology/Ch...
IV. NEW
BUSINESS. NEW
   BRAND.
7. A World of
  Scintillating
“Experiences.”
“Experiences are as
distinct from services
 as services are from
       goods.”
Joseph Pine & James Gilmore, The Experienc...
“Club Med        is more
than just a ‘resort’; it’s a
 means of rediscovering
 oneself, of inventing an
   entirely new ‘m...
“The [Starbucks] Fix” Is on …
  “We have identified a ‘third
place.’ And I really believe that
sets us apart. The third pl...
“Guinness as a brand
  is all about community.
It’s about bringing people
    together and sharing
stories.”—Ralph Ardill,...
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
  a 43-year-old accountant to
  dress in black leather, ri...
WHAT CAN BROWN DO FOR YOU?
“I see us as being in
 Bob Lutz:
    the art business. Art,
   entertainment and mobile
       sculpture, which,
coinciden...
“Lexus sells its cars as
   containers for our
  sound systems. It’s
 marvelous.”—Sidney Harman/
        Harman Internatio...
Duet … Whirlpool … “washing machine” to
 “fabric care system” … white goods: “a sea of
  undifferentiated boxes” … $400 to...
From “Service’ to “Cause”


   7X. 730A-
  800P. F12A.*
*Plus: WOW Department’” “Kill a Stupid Rule” contests,
 etc. 2001R...
“Car designers need to create a
     story. Every car provides an
opportunity to create an adventure. …
“The Prowler makes...
Hmmmm(?): “Only” Words …
        Story
      Adventure
       Smile
       Focus
        Plot
       Passion
Experience …



Cirque du Soleil
DO YOU MEASURE UP?*


       *If not, why not?
“Most executives have no
 idea how to add value to a
market in the metaphysical
world. But that is what the market
will cr...
Extraction & Goods:
 Male dominance
    Services &
Experiences: Female
    dominance
“Women don’t buy
      They
brands.
join them.”
    EVEolution
The “Experience Ladder”

  Experiences
    Services
     Goods
  Raw Materials
<TGW
 vs.


>TGR
8. Experiences+:
 Embracing the
     “Dream
   Business.”
DREAM: “A dream is a complete
    moment in the life of a client.
 Important experiences that tempt
  the client to commit...
The marketing of Dreams (Dreamketing)
    Dreamketing: Touching the clients’
                dreams.
Dreamketing: The art ...
Common Products                 “Dream” Products
Maxwell House                   Starbucks
BVD                            ...
Building the Creative Organization
Choose a creator: The cultural leader who gives the
company an aesthetic point of view....
(Revised) Experience Ladder
 Dreams Come True
Awesome Experiences
     Solutions
     Services
      Goods
   Raw Materials
“The sun is setting on the Information Society—even before we
      have fully adjusted to its demands as individuals and ...
“In Denmark, eggs from free-range hens have
 conquered over 50 percent of the market. Consumers
 do not want hens to live ...
“Person 1 is the rational, planning being, and
   Person 2 is the emotional and story-buying
entity. The last century diso...
Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness, Friendship
   and Love
3. The Market for Care
4...
New Market Realities

  Selling Dreams: How to Make Any Product
   Irresistible, Gian Luigi Longinotti-Buitoni

The Dream ...
15 “Leading” Biz Schools
     Design/Core: 0
   Design/Elective: 1
    Creativity/Core: 0
  Creativity/Elective: 4
   Inno...
9. “It” all adds up
    to … THE
   BRAND.
The Heart of
Branding …
“WHO ARE
  WE?”
“WHAT’S
  OUR
STORY?”
“We are in the twilight of a society based on data. As
  information and intelligence become the domain of
computers, soci...
“Apple opposes, IBM solves,
 Nike exhorts, Virgin enlightens,
Sony dreams, Benetton protests.
    … Brands are not
   noun...
“EXACTLY
 HOW ARE WE
DRAMATICALLY
 DIFFERENT?”
“A great company
is defined by the fact
         that it
   is not compared
     to its peers.”
   Phil Purcell, Morgan St...
Brand = You Must Care!
 “Success means never
  letting the competition
define you. Instead you have
to define yourself bas...
“WHY DOES IT
 MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
  PASSIONATELY
   CONVEY THAT
    DRAMATIC
DIFFERENCE TO THE
     CLIENT ?”
Branding: Is-Is Not “Table”

TNT is not:     TNT is:      TNT is not:
Juvenile      Contemporary   Old-fashioned
Mindless ...
Message …


Is Not >> Is
Rules of “Radical Marketing”
 Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Cust...
V. NEW
BUSINESS.
  NEW
MARKETS.
10. Trends Worth Trillion$$$ I:


  Women
   Roar.
?????????
         Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
               H...
????




80%
Riding Lawnmowers
2/3rds working women/
50+% working wives > 50%
        80% checks
         61% bills
  53% stock (mutual fund boom)
      ...
1970-1998

 Men’s median income: +0.6%
Women’s median income: + 63%


 Source: Martha Barletta, Marketing to Women
$5+T > Japan

10M/28M/$3.6T
  > Germany
Business Purchasing Power

Purchasing mgrs. & agents: 51%
          HR: >>50%
     Admin officers: >50%


 Source: Martha ...
Women-owned Bus.

U.S. employees > F500
employees worldwide
 Source: Martha Barletta, Marketing to Women
91% women:
   ADVERTISERS DON’T
    UNDERSTAND US.
    (58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Ins...
Carol Gilligan/ In a Different Voice

  Men: Get away from authority, family
           Women: Connect

         Men: Self...
FemaleThink/ Popcorn
“Men and women don’t think the same
  way, don’t communicate the same
way, don’t buy for the same rea...
“Men seem like loose cannons. Men
   always move faster through a store’s
aisles. Men spend less time looking. They
usuall...
How Many Gigs You Got, Man?

“Hard to believe … Different criteria”
 “Every research study we’ve done
  indicates that wom...
Women's View of Male
           Salespeople

   Technically knowledgeable;
assertive; get to the point; pushy;
  condescen...
Read This: Barbara & Allan Pease’s

 Why Men Don’t
Listen & Women
Can’t Read Maps
“Resting” State: 30%, 90%: “A
    woman knows her children’s
friends, hopes, dreams, romances,
     secret fears, what the...
“As a hunter, a man needed vision that
 would allow him to zero in on targets in the
 distance … whereas a woman needed ey...
“Female hearing advantage
  contributes significantly to what is
 called ‘women’s intuition’ and is one
of the reasons why...
Senses
Vision: Men, focused; Women,
          peripheral.
Hearing: Women’s discomfort
        level I/2 men’s.
    Smell: ...
Sensitivity to differences: Twice as
         many card stacks.

   More “contextual,” “holistic.”

“People powered”: Age ...
“When a woman is upset,
 she talks emotionally to
her friends; but an upset
 man rebuilds a motor or
   fixes a leaking ta...
“Women speak and hear a language of
  connection and intimacy, and men
 speak and hear a language of status
and independen...
“The Hollywood scripts that men
write tend to be direct and linear,
  while women’s compositions
   have many conflicts, m...
“Women are more
   comfortable talking or
 thinking about people and
  relationships, while men
    prefer to contemplate
...
Editorial/Men: Tables, rankings.*

Editorial/Women: Narratives that
cohere.*

*Redwood (UK)
Initiate Purchase

Men: Study “facts & features.”

Women: Ask lots of people for
          input.
   Source: Martha Barlet...
Read This Book …

  EVEolution:
 The Eight Truths of
Marketing to Women
  Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1

Connecting Your Female
Consumers to Each Other
 Connects Them to Your
        Brand
“The ‘Connection Proclivity’ in
women starts early. When asked,
 ‘How was school today?’ a girl
  usually tells her mother...
“Women don’t buy
      They
brands.
join them.”
    EVEolution
Purchasing Patterns

Women: Harder to convince; more
    loyal once convinced.

   Men: Snap decision; fickle.
  Source: M...
2.6   vs.   21
“War has broken out over
  your home-improvement
   dollar, and Lowe’s has
superpower Home Depot on
 the defensive. It’s n...
“Volvo Teams Up to Build
   What Women Want:
  Concept Car Goes for
   Great Storage, Easy
 Maintenance” —headline/USA
 To...
Not!
“Year of the
 Woman”
Enterprise Reinvention!
          Recruiting
 Hiring/Rewarding/Promoting
           Structure
          Processes
        ...
“Honey, are you
 sure you have the
  kind of money it
takes to be looking
at a car like this?”
Psssst! Wanna
see my “porn”
  collection?
Ad from Furniture /Today (04.01):
    “MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”


  Presenti...
0
“Customer is King”:   4,440

  “Customer is Queen”:   29
F.Y.I.
“Women Beat Men
at Art of Investing”
Source: Miami Herald, reporting on a study by
 Profs. Terrance Odean and Brad Barber,...
Investment Club Returns

Women-only clubs 1997 … 17.9%
       Mixed … 17.3%
     Men-only … 15.6%


     Source: National ...
Value Line: Top State* Investment
           Clubs 2000

     8 … All male
      19 … Coed
   22 … All FEMALE
   * VT & Ma...
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
   not...
“And even if they manage to get the age thing right,
 [Marti] Barletta says companies still tend to screw up
in fairly pre...
11. Trends Worth Trillion$$$ II:

Boomer Bonanza/
Godzilla Geezer.
Subject: Marketers & Stupidity


   “It’s 18-44,
      stupid!”
Subject: Marketers & Stupidity


        “18-44 is
Or is it:

       stupid,
      stupid!”
2000-2010 Stats

 18-44: -1%
55+: +21%
 (55-64: +47%)
44-65: “New
        Consumer
        Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, Dav...
“The New Consumer
  Majority is the only adult
    market with realistic
  prospects for significant
 sales growth in doze...
“Baby-boomer
Women: The Sweetest
 of Sweet Spots for
Marketers”          —David Wolfe and Robert
     Snyder, Ageless Mark...
“It’s like a tsunami
coming at you. You know
 the tidal wave is going
to hit, and it’s a question
   of whether we’ll be
 ...
Aging/“Elderly”


 $$$$$$$$$$$$
“I’m in charge!”
“NOT ACTING THEIR
AGE: As Baby Boomers
 Zoom into Retirement,
Will America Ever Be the
        Same?”
      USN&WR Cover/0...
“Sixty Is the
New Thirty”
  —Cover/AARP/11.03
50+
$7T wealth (70%)/$2T annual income
   50% all discretionary spending
79% own homes/40M credit card users
   41% new ca...
“Advertisers pay more to reach the kid
because they think that once someone hits
 middle age he’s too set in his ways to b...
Read This!

  Carol Morgan &
   Doran Levy,
 Marketing to the
Mindset of Boomers
 and Their Elders
“Marketers attempts at
reaching those over 50 have
      been miserably
 unsuccessful. No market’s
 motivations and needs ...
“Focused on assessing the
  marketplace based on lifetime
   value (LTV), marketers may
  dismiss the mature market as
 he...
“While the average American age
  12 or older watched at least five
movies per year in a theater, those
    40 and older w...
“Women 65 and older spent $14.7
 billion on apparel in 1999, almost as
much as that spent by 25- to 34-year-
  olds. While...
Possession Experiences /“Desires for
   things”/Young adulthood/to 38
Catered Experiences/ “Desires to be
served by others...
“ ‘Age Power’ will
rule the 21 century, st

and we are woefully
    unprepared.”
Ken Dychtwald, Age Power: How the 21st
  ...
No: “Target Marketing”
Yes:       “Target
Innovation” & “Target
Delivery Systems”
Marketing to Women, Martha Barletta
  EVEolution: The Eight Truths of Marketing to Women, Faith
                  Popcorn ...
VII. NEW
BUSINESS. NEW
     YOU.
12. Re-inventing the
Individual: Welcome
  to a Brand You
        World
“If there is nothing
 very special about
your work, no matter how
 hard you apply yourself, you
  won’t get noticed, and t...
TIM MONICH: “the man
Hollywood turns to for the
      right accent”

      Source: Boston Globe/01.25.2004
Thriving in 24/7 (Sally Helgesen)

START AT THE CORE. Nimbleness only possible if we
  “locate our inner voice,” take regu...
“You are the storyteller
of your own life, and you
  can create your own
     legend or not.”
       Isabel Allende
The Rule of Positioning

 “If you can’t describe
 your position in eight
words or less, you don’t
    have a position.”
  ...
“My ancestors were printers in
Amsterdam from 1510 or so until
   1750, and during that
 entire time they didn’t
 have to ...
“Knowledge becomes obsolete
incredibly fast. The continuing
  professional education of
 adults is the No. 1 industry
in t...
26.3
3 Weeks in May

“Training” & Prep: 187
      “Work”: 41
     (“Other”: 17)
1%
 vs.


367%
Divas do it. Violinists do it.
Sprinters do it. Golfers do it.
 Pilots do it. Soldiers do it.
 Surgeons do it. Cops do it....
Prep: 1 hour per 1 minute (WSC)
 “Forget ‘practice makes perfect.’
Substitute ‘perfect practice makes
 perfect.’ ” (TT) “M...
Edward Jones’ Training Machine*

146 hours/employee/year
   New hires: 4X avg.
     3.8% of payroll

  * #1, “The 100 Best...
13. Boss Job One:
 The Talent
 Obsession.
“When land was the scarce
  resource, nations battled
     over it. The same is
     happening now for
      talented peop...
Age of Agriculture
          Industrial Age
Age of Information Intensification
 Age of Creation Intensification
 Source: M...
Brand =
Talent.
Talent!
Tina Brown: “The first thing
 to do is to hire enough
talent that a critical mass
  of excitement starts to
      ...
The Talent Ten
1. Obsession

P.O.T.* = All
Consuming
   *Pursuit of Talent
Model   25/8/53
Sports Franchise GM
“In most companies, the Talent Review
  Process is a farce. At GE, Jack Welch and
his two top HR people visit each divisio...
“The leaders of Great
Groups love talent and know
where to find it. They revel in
   the talent of others.”
Warren Bennis ...
PARC’s Bob Taylor:

“Connoisseur
  of Talent”
Les Wexner: From
sweaters to people!
Talent (Not) on His Mind
Norman Pearlstine, Editor-in-Chief,
  Time Inc., asked a magazine’s
   managing editor to name 10...
2. Greatness

Only The Best!
From “1, 2 or you’re out” [JW] to
               …
“Best Talent in each
 industry segment to build
     best proprietary
 ...
3. Performance

Up or out!
“We believe companies can increase their
   market cap 50 percent in 3 years. Steve
Macadam at Georgia-Pacific changed 20 ...
Message: Some
            people are
  better than other
people. Some people
  are a helluva lot
  better than other
     ...
4. Pay

Fork Over!
“Top performing companies are
 two to four times more likely
than the rest to pay        what it
   takes to prevent losin...
5. Youth

Grovel Before
 the Young!
“Why focus on these late teens and twenty-
 somethings? Because they are the first
  young who are both in a position to
 ...
6. Diversity

Mess Rules!
“Where do good new ideas come
      from? That’s simple! From
  differences. Creativity comes
 from unlikely juxtaposition...
“Diversity defines the health
  and wealth of nations in a new
century. Mighty is the mongrel. The hybrid is hip.
   The i...
CM Prof Richard Florida on
“Creative Capital”: “You cannot
   get a technologically
innovative place unless it’s
    open ...
7. Women

Born to Lead!
“AS LEADERS, WOMEN
RULE: New Studies find
 that female managers
  outshine their male
 counterparts in almost
    every me...
8. Weird
The Cracked Ones
 Let in the Light!
The Cracked Ones Let in the Light
 “Our business needs a massive
transfusion of talent, and talent, I
believe, is most lik...
“Deviance tells
 Deviants, Inc.
   the story of every mass
   market ever created. What
   starts out weird and dangerous
...
9. Opportunity
Make It an
Adventure!
“H.R.” to “H.E.D.” ???

   Human
   Enablement
   Department
“Firms will not ‘manage the
careers’ of their employees. They
   will provide opportunities to
 enable the employee to dev...
T ale nt
De part m e nt
People Department
   Center for Talent Excellence
Seriously Cool People Who Recruit
 & Develop Seriously Cool People
     ...
10. Leading Genius
We are all unique!
Beware Lurking HR Types …

One size NEVER
fits all. One size
fits one. Period.
100% IMAGINATION!*
The Ritz Cookie Lady
        PPSI
       *Damn it.
What’s your company’s …



    EVP?
Employee Value Proposition, per Ed
  Michaels et al., The War for Talent;
IBP/Internal...
EVP = Challenge,
professional growth,
respect, satisfaction,
 opportunity, reward
Source: Ed Michaels et al., The War for ...
Our Mission
To develop and manage talent;
      to apply that talent,
    throughout the world,
   for the benefit of clie...
Talent’s “Big Two” Rules

 GREAT Finance Dept. =
 GREAT Football Team
DIFFERENCES Among Cello
  Players = DIFFERENCES
    ...
13A. Meet the New
 Boss: Women
     Rule!
“AS LEADERS, WOMEN
RULE: New Studies find
 that female managers
  outshine their male
 counterparts in almost
    every me...
Lawrence A. Pfaff & Associates
 — 2 Years, 941 mgrs (672M, 269F); 360º
feedback
 — Women: 20 of 20; 15 of 20 with statisti...
The New Economy …
    Shout goodbye to
 “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
     ...
Women’s Strengths Match New Economy
    Imperatives: Link [rather than rank] workers;
   favor interactive-collaborative l...
“Society is based on male
 standards with women seen
 as anomalies deviating from
the male norm.” — Bi Puvaneu, Institute ...
“On average, women and men
possess a number of different innate
skills. And current trends suggest
  that many sectors of ...
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their appearance?
 Who usually takes car...
“Investors are looking more and more
 for a relationship with their financial
 advisers. They want someone
they can trust,...
Work’s Rewards

F: Relationships, respect, self-realization.
M: Title, salary, power. (“In all my research
with men, I’ve ...
Opportunity!
                U.S.           G.B. E.U. Ja.
M.Mgt.           41%           29% 18% 6%
T.Mgt.           4%   ...
+/-
 The Boston Club:
Corporate Salute
               (10.28.03)
Degree Gap*

Wom:Men/Bachelor’s … 2000: 133;
         2010: 142

Wom:Men/Master’s … 2000: 138;
         2010: 151
  * Whit...
“THE NEW GENDER GAP:
From kindergarten to grad
    school, boys are
  becoming the second
     sex”—Cover story,
  Busines...
“Are men
obsolete?”
   USN&WR/06.03.03
                     —Headline,
Read This!

 “Winning the Talent War
for Women: Sometimes It
   Takes a Revolution”
    Douglas McCracken, HBR
“Deloitte was doing a great job of hiring high-
 performing women; in fact, women often earned
higher performance ratings ...
“The process of assigning plum
accounts was largely unexamined. …
 Male partners made assumptions:
   ‘I wouldn’t put her ...
!!!!!!!!!!!!!!!



14 to 168*
*Leadership Positions/D&T/1992-2002/WIAR
14. Brand Talent+:
 Addressing the
  Education
   Fiasco.
“My education was a
prolonged and concerted
       attack on my
 individuality.”
             —Neil Crofts, Authentic
Losing the War
to Bismarck (and
   Rockefeller)
J. D. Rockefeller’s General Education Board
(1906):   “In our dreams people
  yield themselves with
  perfect docility to ...
“My wife and I went to a [kindergarten] parent-teacher
   conference and were informed that our budding
 refrigerator arti...
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En masse the children leapt from ...
Ye gads: “Thomas Stanley has not only found no
  correlation between success in school and an
ability to accumulate wealth...
The NAESP …
Attributes of Those Who “Made” the 10th
           Grade History Book
– Committed!
– Determined to make a difference!
– Fo...
Attributes of Those Who “Made” the 10th Grade
                History Book
  –Made lots of people mad!
  –Flouted the chai...
Attributes of Those Who “Made” the 10th Grade
                History Book
  –Made lots of people mad!
  –Flouted the chai...
Attributes of Those Who “Made” the 10th Grade
                 History Book

  –Forgiveness > Permission
  –Bone honest!
 ...
VIII. NEW BUSINESS:
    (NEW) BRAND
    INSIDE RULES
Message   2003 …

BI > BO
Brand Inside Rules!
“I came to see in my time
 at IBM that culture isn’t
  just one aspect of the
game—it is the game”    ...
Brand Inside Rules!
 “If I could have chosen not to tackle
 the IBM culture head-on, I probably
wouldn’t have. My bias com...
15. THINK
WEIRD … the HVA/
 High Value Added
     Bedrock.
Saviors-in-Waiting
 Disgruntled Customers
Off-the-Scope Competitors
     Rogue Employees
      Fringe Suppliers
Wayne Burk...
The
 THINK WEIRD:

High Standard
  Deviation
 Enterprise.
CUSTOMERS: “Future-
 defining customers may
account for only 2% to 3%
  of your total, but they
  represent a crucial
wind...
“The future has
already happened. It’s
    just not evenly
     distributed.”
     Adrian Slywotzky
“If you worship at the
throne of the voice of the
customer, you’ll get only
incremental advances.”
   Joseph Morone, Presi...
COMPETITORS: “The      best swordsman
 in the world doesn’t need to fear
the second best swordsman in the
world; no, the p...
“To grow, companies need
  to break out of a vicious
    cycle of competitive
benchmarking, imitation and
  pursuit.” —W. ...
“The short road to
  ruin is to emulate
the methods of your
     adversary.”
      — Winston Churchill
“This is an essay about what it takes to create and sell
 something remarkable. It is a plea for originality, passion, gut...
Employees: “Are there
  enough weird
people in the lab these
                    days?”
V. Chmn., pharmaceutical house, to...
Suppliers: “Thereis an ominous
  downside to strategic supplier
 relationships. An SSR supplier is not
likely to function ...
Boards: “Extremely contentious
boards that regard dissent as an
  obligation and that treat no
subject as undiscussable” —...
“The Bottleneck is at the
           Top of the Bottle”

 “Where are you likely to find people
 with the least diversity o...
We become
who we hang
 out with!
WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the
      organizational code). (1.5) Hire people who make you
   uncomf...
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pu...
Big Idea/s

  V.C.
  GM
Portfolio
 Roster
Innovation Index: How
   many of your Top 5
Strategic Initiatives score
7 or higher (out of 10) on
a “Weirdness/Profundity...
IX. NEW BUSINESS.
NEW LEADERSHIP.
20. The Passion
  Imperative: The


Leadership    50
The Basic
Premise.
1. Leadership Is a …
     Mutual
  Discovery
   Process.
“Ninety percent of what
 we call ‘management’
  consists of making it
difficult for people to get
   things done.” – P.D.
“I don’t
know.”
Quests!
Organizing Genius / Warren Bennis and Patricia
               Ward Biederman

   “Groups become great only when
everyone i...
The
Leadership
  Types.
2. Great Leaders on Snorting
   Steeds Are Important – but
    Great Talent
  Developers (Type I
Leadership) are the Bedro...
Whoops: Jack
didn’t have a vision!
3. But Then Again, There
  Are Times When This
“Cult of Personality” (Type
   II Leadership) Stuff
      Actually Works!
“A leader is a
  dealer in
   hope.”
         Napoleon
  (+TP’s writing room pics)
4. Find the
 “Businesspeople”!
(Type III Leadership)
I.P.M.   (Inspired Profit
   Mechanic)
5. All Organizations
Need the Golden
  Leadership
   Triangle.
The Golden Leadership
  Triangle: (1) Creator-
  Visionary … (2) Talent
Fanatic-Mentor-V.C. … (3)
Inspired Profit Mechanic.
The Essential Tension
— Keeper of the Flame of Creation
  (Brahma = Creator)
— Keeper of the Flame of Preservation
  (Vish...
6. Leadership Mantra
    #1: IT
      ALL
  DEPENDS!
Renaissance Men are
… a snare, a myth,
    a delusion!
7. The Leader Is
Rarely/Never the
Best Performer.
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  • It is – on average – this different!
  • Strong language, no?
  • Business Excellence In A Disruptive Age

    1. 1. Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Edinburgh/21April2004
    2. 2. “In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003
    3. 3. Slides at … tompeters.com
    4. 4. I. NEW BUSINESS. NEW CONTEXT.
    5. 5. “Uncertainty is the only thing to be sure of.” —Anthony Muh, head of investment in Asia, Citigroup Asset Management “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army
    6. 6. 1. All Bets Are Off.
    7. 7. Jobs Technology Globalization War, Warfighting & Security
    8. 8. Jobs New Technology Globalization Security
    9. 9. “14 MILLION service jobs are in danger of being shipped overseas” —The Dobbs Report/USN&WR/11.03/re new UCB study
    10. 10. “Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04
    11. 11. “One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.” Source: The Straits Times/08.18.03
    12. 12. “Thaksinomics” (after Taksin Shinawatra, PM)/ “Bangkok Fashion City”/ “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004
    13. 13. “The proper role of a healthily functioning economy is to destroy jobs and to put labor to use elsewhere. Despite this truth, layoffs and firings will always sting, as if the invisible hand of free enterprise has slapped workers in the face.” —Joseph Schumpeter
    14. 14. “There is no job that is America’s God-given right anymore.” —Carly Fiorina/ HP/ 01.08.2004
    15. 15. In Store: International Equality, Intranational Inequality “The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20th century.” James Davidson & William Rees-Mogg,The Sovereign Individual
    16. 16. “WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?” —Headline/ Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity rather than anxiety.”)
    17. 17. Jobs Technology Globalization Security
    18. 18. <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
    19. 19. “I genuinely believe we are living through the greatest intellectual moment in history.” Matt Ridley, Genome
    20. 20. “A California biotechnology company has put the entire sequence of the human genome on a single chip, allowing researchers to conduct a single experiment on the complex relationships between the 30,000 genes that make up a human being.” —Page 3, Financial Times/10.03.2003
    21. 21. Sequenom/David Ewing Duncan/Wired11.02 “Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification process. …This, I’m told, is the first time a healthy human has ever been screened for the full gamut of genetic-disease markers. … On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home- pregnancy tests.”
    22. 22. Jobs Technology Globalization Security
    23. 23. “Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it will bring the two centuries of global domination by Europe and, subsequently, its giant North American offshoot to an end.” —Financial Times (09.22.2003)
    24. 24. “The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004
    25. 25. China Roars!
    26. 26. 1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of Total Global Growth in 2002. Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
    27. 27. 1998-2003: 45,000,000 layoffs in state sector; offset by $450B in foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico, 15% in Korea. Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
    28. 28. 50% of output from private firms, 37% from state-owned firms; 80% of workforce (incl. rural) now in private employ. Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
    29. 29. Population growth = 1%; two-thirds of housing privately owned, 90% of urban Chinese own a home (vs. 61% in Japan) Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
    30. 30. 200 cities with >1,000,000 population. Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
    31. 31. 2003: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%: DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs, PDAs, car stereos). Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
    32. 32. “Going Global: Flush with billions in foreign reserves, China is embarking on a buying spree” —Cover/ Newsweek/ 03.01.04/ on China’s aggressive offshore acquisition activity (buying brands, technology, etc.)
    33. 33. World economic output: U.S.A., 21%; EU, 16%; China, 13% (2X since1991) Source: New York Times/12.14.2003
    34. 34. “With a Small Car, India Takes Big Step Onto Global Stage”—Headline, p. 1, WSJ, 02.05.2004
    35. 35. Indian GDP/1990-2002: Ag, 34% to 21%; services, 40% to 56% Source: The Economist/02.04
    36. 36. Level 5 (top) ranking/Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from India Source: Wired/02.04
    37. 37. “Forget India, Let’s Go to Bulgaria” —Headline, BW/03.04, re SAP, BMW, Siemens et al. “near-shoring”
    38. 38. “CLONING COLLEGE: South Korea’s biomedical researchers, unhampered by politics, do world- class research on the cheap” —Headline, Newsweek/03.01.04
    39. 39. Jobs Technology Globalization Security
    40. 40. “This is a dangerous world and it is going to become more dangerous.” “We may not be interested in chaos but chaos is interested in us.” Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century
    41. 41. “The world’s new dimension (computers, Internet, globalization, instantaneous communication, widely available instruments of mass destruction and so on) amounts to a new metaphysics that, by empowering individual zealots or agitated tribes with unappeasable grievances, makes the world unstable and dangerous in radically new ways.” —Lance Morrow/Evil
    42. 42. All Bets Are Off!
    43. 43. “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
    44. 44. “We are in a brawl with no rules.” Paul Allaire
    45. 45. S.A.V.
    46. 46. “Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week” Source: New York Times on Meg Whitman/eBay
    47. 47. “How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation, discovery and competition? Do we value stability and control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles, stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel, The Future and Its Enemies
    48. 48. Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.” 5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.” 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power.
    49. 49. It is the foremost task— and responsibility— of our generation to re-imagine our enterprises, private and public. —from the Foreword, Re-imagine
    50. 50. “Let’s compete—by training the best workers, investing in R & D, erecting the best infrastructure and building an education system that graduates students who rank with the worlds best. Our goal is to be competitive with the best so we both win and create jobs.” —Craig Barrett (Time/03.01.04)
    51. 51. “In a global economy, the government cannot give anybody a guaranteed success story, but you can give people the tools to make the most of their own lives.” —WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History
    52. 52. Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute
    53. 53. “The Creative Class derives its identity from its members’ roles as purveyors of creativity. Because creativity is the driving force of economic growth, in terms of influence the Creative Class has become the dominant class in society.” —Richard Florida, The Rise of the Creative Class (38M, 30%)
    54. 54. The Winning Edge: Peters’ Big6 1. Research-Innovation 2. Entrepreneurial Attitude & Support (Especially from Capital Markets) 3. Creative (“Obstreperous”) Education 4. Free Trade-Open Markets 5. Individual Self-reliance (& Supports Therefore) 6. Cutting-edge Infrastructure
    55. 55. How Nations Become Wealthy 1. Property rights 2. Scientific rationalism 3. Capital markets 4. Fast and efficient communications and transportation Source: The Birth of Plenty: How the Prosperity of the Modern World Was Created, William Bernstein
    56. 56. 2. The Destruction Imperative.
    57. 57. “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
    58. 58. “It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control
    59. 59. C.E.O. to C.D.O.
    60. 60. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
    61. 61. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.”—Financial Times/11.28.2002
    62. 62. “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
    63. 63. 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
    64. 64. Success Kills! “The more successful a company, the flatter its forgetting curve.” — Gary Hamel and C.K. Prahalad
    65. 65. “Conglomerates don’t work.” —James Surowiecki, The New Yorker (07.01.2002)
    66. 66. “MERGERS: Why Most Big Deals Don’t Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.” —BusinessWeek/10.14.2002
    67. 67. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy I’m sure Committee, answered: there are success stories out there, but at this moment I draw a blank.” Mark Sirower, The Synergy Trap
    68. 68. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
    69. 69. Market Share, Anyone? — 240 industries; market-share leader is ROA leader 29% of the time — Profit / ROA leaders: “aggressively weed out customers who generate low returns” Source: Donald V. Potter, Wall Street Journal
    70. 70. “The $58B hostile bid by Sanofi-Synthelabo for Aventis has been greeted skeptically, as has the news that Novartis may counterbid. Few investors believe that Big Pharma can compensate for a deficit of new drugs by getting bigger. Some suspect the converse is true: that size has made them sluggish. … That has led to some thinking the unthinkable: that pharmaceutical companies should leave drug discovery to biotech companies and focus their efforts on development and marketing.” —Financial Times/03.2004
    71. 71. Winning the Merger Game Is Possible --Lots of deals --Little deals --Friendly deals --Stay close to core competence --Strategy is easy to understand Source: “The Mega-merger Mouse Trap”/Wall Street Journal/02.17.2004/David Harding & Sam Rovit, Bain & Co./re Comcast-Disney
    72. 72. TP on Acquisitions 1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.) 2. Big (GE, Cisco, Omnicom) acquires small/specialist = Good … if you can retain Top Talent. 3. Odds on achieving “projected synergies” among Mixed Big “cultures”: 10%. 4. Max Scale Advantages are achieved at a smaller size than imagined. 5. Attacked by Big, Mediocre Medium marries Mediocre Medium to “bulk up.” Result: Big Mediocrity … or worse. 6. Any size—if Great & Focused—can win, locally or globally. 7. Increasingly, Alliances deliver more value than mergers —and clearly abet flexibility.
    73. 73. No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
    74. 74. Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company
    75. 75. “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo
    76. 76. “Perfection is achieved only by institutions on the point of collapse.” — C. Northcote Parkinson
    77. 77. 2A. Yo, Jim . Or: The Case for … Technicolor!
    78. 78. “intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.”
    79. 79. Herman Melville on JPJ: “intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.” —from Evan Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy
    80. 80. Huh? “Humility: The Surprise Factor in Leadership … bosses with Gung- ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/ re JCollins/10.03
    81. 81. Jim & Tom. Joined at the hip. Not.
    82. 82. I. Good to Great II. Built to Last III. Quiet, Humble Leaders
    83. 83. I. Good to Great II. Built to Last III. Quiet, Humble Leaders
    84. 84. Good to Great: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo
    85. 85. SET Great Companies … THE AGENDA. (Period.)
    86. 86. AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle … Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express … Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN …
    87. 87. I. Good to Great II. Built to Last III. Quiet, Humble Leaders
    88. 88. 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
    89. 89. Warren Bennis & Patricia Ward Biederman/ Great Organizing Genius: Groups Don’t Last Very Long!
    90. 90. “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
    91. 91. “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
    92. 92. I. Good to Great II. Built to Last III. Quiet, Humble Leaders
    93. 93. Huh? “Quiet, workmanlike, stoic leaders bring about the big transformations.”--JC
    94. 94. Huh? “Humility: The Surprise Factor in Leadership … bosses with Gung- ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/ re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)
    95. 95. Wellington Nelson Disraeli Churchill Montgomery Thatcher
    96. 96. “Humble” Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U.S. Grant/W.T. Sherman TR/FDR/LBJ/RR/JFK Patton/Monty/Halsey M.L. King/C. de Gaulle/M. Gandhi/W. Churchill Picasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson H. Clinton/G. Steinem/I. Gandhi/G. Meir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/ S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/ T.A. Edison Rummy/Norm/Henry/Wolfie Elizabeth Cady Stanton/Susa B. Anthony/Martha Cary n Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth Dickinson/Arabella Babb Mansfield/Margaret Sanger
    97. 97. “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch, on GE’s quality program
    98. 98. “Roosevelt’s duplicity, Churchill’s self-absorption” … “We are all worms. But I do believe that I am a glow-worm.” (WSC) … “Imperial and bold” [WSC and TR] … “arrogance and instability” … “rough, sarcastic, bullying” Source: Jon Meacham, Franklin and Winston, et al.
    99. 99. “a vainglorious self- promoter spoiling for a fight” —Arthur Koestler on Galileo
    100. 100. “In my experience, all successful commanders are prima donnas, and must be so treated.” —George S. Patton
    101. 101. Audie Murphy was the most decorated soldier in WW2. He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …
    102. 102. … the Good Conduct medal.
    103. 103. Jim Collins vs. Michael Maccoby “quiet, workmanlike, stoic” vs. “larger-than-life leaders”/ “egoists, charmers, risk-takers with big visions”: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates
    104. 104. “In Tom’s world it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003
    105. 105. The Re-imagineer’s Credo … or, Pity the Poor Brown* Technicolor Times demand … Technicolor Leaders and Boards who recruit … Technicolor People who are sent on … Technicolor Quests to execute … Technicolor (WOW!) Projects in partnership with … Technicolor Customers and … Technicolor Suppliers all of whom are in pursuit of … Technicolor Goals and Aspirations fit for … Technicolor Times. *WSC
    106. 106. “When it comes to transformative technologies, overoptimistic investors are actually working for the common good—even if they don’t know it. We can be glad that investors financed the construction of thousands of miles of track in the middle of the nineteenth century, despite the fact that most of them dropped a bundle doing it. The same goes for over- optimistic investors who poured money into semiconductors thirty years ago, financed undersea fiber-optic cables in the late nineties, and now are poised to lose their shirts in the coming nanobubble. In the dreams of avarice lie the seeds of progress.”— james Surowiecki/New Yorker/03.2004
    107. 107. “In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshed—and produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce —the cuckoo clock.” Orson Welles, as Harry Lime, in The Third Man
    108. 108. II. NEW BUSINESS. NEW TECH.
    109. 109. 3. IS/ IT/ Web: “On the Bus” or “Off the Bus.”
    110. 110. 100 square feet
    111. 111. “Invisible Supplier Has Penney’s Shirts All Buttoned Up: From Hong Kong, It Tracks Sales, Restocks Shelves, Ships Right to the Store.” —Headline, Wall Street Journal (09.11.03)
    112. 112. “Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre- programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.” —David Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)
    113. 113. “MIT Everywhere: EVERY LECTURE, EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL GEEKS GETTING AN MIT EDUCATION, OPEN SOURCE- STYLE.” —Headline/Wired/09.03
    114. 114. “Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. “In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002
    115. 115. “The mechanical speed of combat vehicles has not increased since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.” —Edward Luttwak, on the unprecedented pace of the move toward Baghdad
    116. 116. e-piphany epicurious.com
    117. 117. “flash mobs” (!)
    118. 118. “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
    119. 119. Case: CRM
    120. 120. Amen! “The Age of the Never Satisfied Customer” Regis McKenna
    121. 121. “CRM has, almost universally, failed to live up to expectations.” Butler Group (UK)
    122. 122. No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre- electronic age when service was more personal.”
    123. 123. CGE&Y (Paul Cole): “Pleasant Transaction” vs.“Systemic Opportunity.” “Better job of what we do today” vs. “Re- think overall enterprise strategy.”
    124. 124. Here We Go Again: Except It’s Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3rd; 3.3M; 50% lower attrition rate; 50% higher growth in balances than off-line; more likely to cross- purchase; “happier and stay with the bank much longer.” Source: The Wall Street Journal/10.21.2002
    125. 125. IS/IT is strategy!
    126. 126. 5% F500 have CIO on Board: “While some of the world’s most admired companies— Tesco, Wal*Mart—are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value.” Source: Burson-Marsteller
    127. 127. 4. The White Collar Revolution.
    128. 128. Steel: 75,000,000 tons in ’82 to 102,000,000 tons in ’02. 289,000 steelworkers in ’82 to 74,000 steelworkers in ’02. Source: Fortune/11.24.03
    129. 129. E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW (01.28.02)
    130. 130. “A bureaucrat is an expensive microchip.” Dan Sullivan, consultant and executive coach
    131. 131. Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of : 620. Lund/SW) Lars Edenbrandt’s software: 738. *Only this time it matters!
    132. 132. “Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy
    133. 133. “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.
    134. 134. “P&G Hires Out Employee Services to IBM” —Burlington Free Press/09.10.03/ on IBM’s 10-year, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June)
    135. 135. Ford: “Vehicle brand owner” (“design, engineer, and market, but not actually make”) Source: The Company, John Micklethwait & Adrian Wooldridge
    136. 136. III. NEW BUSINESS. NEW VALUE PROPOSITION.
    137. 137. 5. The “PSF Solution”: The Professional Service Firm Model.
    138. 138. Sarah:“ Daddy, what do you do?” Daddy: “I’m a ‘cost center.’ ”
    139. 139. So what will be the Basic Building Block of the New Org?
    140. 140. Every job done in W.C.W. is also done “outside” … for profit!
    141. 141. Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
    142. 142. TP to HRMAC: You are the … Rock Stars of the Age of Talent!
    143. 143. DD$21M
    144. 144. Dept. Head I = Sports G.M. Dept. Head II = V.C.
    145. 145. eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
    146. 146. Model PSF …
    147. 147. (1) Translate ALL departmental activities into discrete W.W.P.F. “Products.” (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!
    148. 148. “Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that. We pay for ourselves, and we actually make money for the company.” —Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
    149. 149. 6. The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative.”
    150. 150. Base Case: The Sameness Trap
    151. 151. “While everything may it is also be better, increasingly the same.” Paul Goldberger on retail, “The Sameness of Things,” The New York Times
    152. 152. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst
    153. 153. “When we did it ‘right’ it was still pretty ordinary.” Barry Gibbons on “Nightmare No. 1”
    154. 154. Fight ’til Death! “I thought, ‘What a dreadful mission I have in life.’ I’d love to get six-thousand restaurants up to spec, but when I do it’s ‘Ho-hum.’ It’s bugged me ever since. It’s one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we have created a plethora of ho-hum products and services. Just go fly in an airplane. It could be such an enlightening experience. Ho-hum. We swim in an ocean of ho-hum, and I’m going to fight it. I’m going to die fighting it.” — Barry Gibbons
    155. 155. “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 and similar quality.” Kjell Nordström and Jonas Ridderstråle, Funky Business
    156. 156. “Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, Unique Now ... or Never
    157. 157. “We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina
    158. 158. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!
    159. 159. “These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett-Packard
    160. 160. Systems Gerstner’s IBM: Integrator of choice. Global Services: $35B. Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).
    161. 161. “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
    162. 162. Keep In Mind: Customer Satisfaction versus Customer Success
    163. 163. E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”
    164. 164. Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on “crown jewel” handsets 5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal” Source: BW/11.04.02
    165. 165. Flextronics --$14B; 100K employees; 60% p.a. growth (’93-’00) -- “contract mfg” to EMS/Electronics Manufacturing Services (design, mfg, logistics, repair); “total package of outsourcing solutions” (Pamela Gordon, Technology Forecasters) -- “The future of manufacturing isn’t just in making things but adding value” (3,500 design engineers) Source: Asia Inc./02.2004
    166. 166. “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)
    167. 167. “SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank Source: Fast Company/02.04
    168. 168. “No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group
    169. 169. “ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec
    170. 170. Omnicom: 60% (of $7B) from marketing services
    171. 171. And the Winners Are … Televisions –12% Cable TV service +5% Toys -10% Child care +5% Photo equipment -7% Photographer’s fees +3% Sports Equipment -2% Admission to sporting event +3% New car -2% Car repair +3% Dishes & flatware -1% Eating out +2% Gardening supplies -0.1% Gardening services +2% Source: WSJ/05.16.03
    172. 172. IBM/Q3/10.15.03/Rev: +5% Services/Consulting: +11% Software: +5% Hardware: -5% PCs: -2% Technology/Chips: -33%
    173. 173. IV. NEW BUSINESS. NEW BRAND.
    174. 174. 7. A World of Scintillating “Experiences.”
    175. 175. “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
    176. 176. “Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ” Source: Jean-Marie Dru, Disruption
    177. 177. “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
    178. 178. “Guinness as a brand is all about community. It’s about bringing people together and sharing stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
    179. 179. 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
    180. 180. WHAT CAN BROWN DO FOR YOU?
    181. 181. “I see us as being in Bob Lutz: the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Source: NYT 10.19.01
    182. 182. “Lexus sells its cars as containers for our sound systems. It’s marvelous.”—Sidney Harman/ Harman International
    183. 183. Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family.” … “machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room” (complements Sub-Zero refrigerator and home-theater center) Source: New York Times Magazine/01.11.2004
    184. 184. From “Service’ to “Cause” 7X. 730A- 800P. F12A.* *Plus: WOW Department’” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce Bank/NJ ($10B). Source: FC05.02.
    185. 185. “Car designers need to create a story. Every car provides an opportunity to create an adventure. … “The Prowler makes you smile. Why? Because it’s focused. It has a plot, a reason for being, a passion.” Freeman Thomas, co-designer VW Beetle; designer Audi TT
    186. 186. Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion
    187. 187. Experience … Cirque du Soleil
    188. 188. DO YOU MEASURE UP?* *If not, why not?
    189. 189. “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, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]
    190. 190. Extraction & Goods: Male dominance Services & Experiences: Female dominance
    191. 191. “Women don’t buy They brands. join them.” EVEolution
    192. 192. The “Experience Ladder” Experiences Services Goods Raw Materials
    193. 193. <TGW vs. >TGR
    194. 194. 8. Experiences+: Embracing the “Dream Business.”
    195. 195. DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni
    196. 196. The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz,” the “hype,” the “cult.” Source: Gian Luigi Longinotti-Buitoni
    197. 197. Common Products “Dream” Products Maxwell House Starbucks BVD Victoria’s Secret Payless Ferragamo Hyundai Ferrari Suzuki Harley-Davidson Atlantic City Acapulco New Jersey California Carter Kennedy Conners Pele CNN Millionaire Source: Gian Luigi Longinotti-Buitoni
    198. 198. Building the Creative Organization Choose a creator: The cultural leader who gives the company an aesthetic point of view. Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion. Prepare vertically: Develop a rigorous understanding of the product and the client. Develop horizontally: Promote curiosity in unrelated disciplines. Lead emotionally: Engender passionate dedication through vision and freedom. Build for the long haul: Creativity requires a lifetime commitment. Source: Gian Luigi Longinotti-Buitoni
    199. 199. (Revised) Experience Ladder Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials
    200. 200. “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business
    201. 201. “In Denmark, eggs from free-range hens have conquered over 50 percent of the market. Consumers do not want hens to live their lives in small, confining cages. They are willing to pay 15 percent to 20 percent more for the story about animal ethics. This is classic Dream Society logic. Both kind of eggs are similar in quality, but consumers prefer eggs with the better story. After we debated the issue and stockpiled 50 other examples, the conclusion became evident: Stories and tales speak directly to the heart rather than the brain. After a century where society was marked by science and rationalism, the stories and values are returning to the scene.” —Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
    202. 202. “Person 1 is the rational, planning being, and Person 2 is the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town —in the shops, on the Internet, in the companies, in politics, in economics, even science.” —Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
    203. 203. Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
    204. 204. New Market Realities Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-Buitoni The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf Jensen Trading Up: The New American Luxury, Michael Silverstein & Neil Fiske
    205. 205. 15 “Leading” Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002
    206. 206. 9. “It” all adds up to … THE BRAND.
    207. 207. The Heart of Branding …
    208. 208. “WHO ARE WE?”
    209. 209. “WHAT’S OUR STORY?”
    210. 210. “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 Companies will to how we work with others. 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
    211. 211. “Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs.” Source: Jean-Marie Dru, Disruption
    212. 212. “EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”
    213. 213. “A great company is defined by the fact that it is not compared to its peers.” Phil Purcell, Morgan Stanley
    214. 214. 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
    215. 215. “WHY DOES IT MATTER TO THE CLIENT?”
    216. 216. “EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ?”
    217. 217. Branding: Is-Is Not “Table” TNT is not: TNT is: TNT is not: Juvenile Contemporary Old-fashioned Mindless Meaningful Elitist Predictable Suspenseful Dull Frivolous Exciting Slow Superficial Powerful Self-important
    218. 218. Message … Is Not >> Is
    219. 219. 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)
    220. 220. V. NEW BUSINESS. NEW MARKETS.
    221. 221. 10. Trends Worth Trillion$$$ I: Women Roar.
    222. 222. ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%
    223. 223. ???? 80%
    224. 224. Riding Lawnmowers
    225. 225. 2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed
    226. 226. 1970-1998 Men’s median income: +0.6% Women’s median income: + 63% Source: Martha Barletta, Marketing to Women
    227. 227. $5+T > Japan 10M/28M/$3.6T > Germany
    228. 228. Business Purchasing Power Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women
    229. 229. Women-owned Bus. U.S. employees > F500 employees worldwide Source: Martha Barletta, Marketing to Women
    230. 230. 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)
    231. 231. Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities
    232. 232. 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.”
    233. 233. “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!)
    234. 234. 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
    235. 235. Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to women’s needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)
    236. 236. Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t Read Maps
    237. 237. “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
    238. 238. “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
    239. 239. “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
    240. 240. Senses Vision: Men, focused; Women, peripheral. Hearing: Women’s discomfort level I/2 men’s. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women
    241. 241. Sensitivity to differences: Twice as many card stacks. More “contextual,” “holistic.” “People powered”: Age 3 days, baby girls 2X eye contact. Source: Martha Barletta, Marketing to Women
    242. 242. “When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
    243. 243. “Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” Judy Rosener, America’s Competitive Secret
    244. 244. “The Hollywood scripts that men write tend to be direct and linear, while women’s compositions have many conflicts, many climaxes, and many endings.” Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World
    245. 245. “Women are more comfortable talking or thinking about people and relationships, while men prefer to contemplate things.” —research reported in the New York Times (08.10.2003)
    246. 246. Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK)
    247. 247. Initiate Purchase Men: Study “facts & features.” Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women
    248. 248. Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold
    249. 249. EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand
    250. 250. “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
    251. 251. “Women don’t buy They brands. join them.” EVEolution
    252. 252. Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women
    253. 253. 2.6 vs. 21
    254. 254. “War has broken out over your home-improvement dollar, and Lowe’s has superpower Home Depot on the defensive. It’s not-so- secret ploy: Lure women.” —Forbes.com
    255. 255. “Volvo Teams Up to Build What Women Want: Concept Car Goes for Great Storage, Easy Maintenance” —headline/USA Today/12.16.2003/140-person team;80% women
    256. 256. Not! “Year of the Woman”
    257. 257. Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF!
    258. 258. “Honey, are you sure you have the kind of money it takes to be looking at a car like this?”
    259. 259. Psssst! Wanna see my “porn” collection?
    260. 260. Ad from Furniture /Today (04.01): “MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way” Presenting Experts: M = 16; F= ?? (94% = 272)
    261. 261. 0
    262. 262. “Customer is King”: 4,440 “Customer is Queen”: 29
    263. 263. F.Y.I.
    264. 264. “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)
    265. 265. Investment Club Returns Women-only clubs 1997 … 17.9% Mixed … 17.3% Men-only … 15.6% Source: National Assoc. Investors
    266. 266. Value Line: Top State* Investment Clubs 2000 8 … All male 19 … Coed 22 … All FEMALE * VT & Maine not included; D.C. included
    267. 267. 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.
    268. 268. “And even if they manage to get the age thing right, [Marti] Barletta says companies still tend to screw up in fairly predictable ways when they add women to the equation. Too often, their first impulse is to paint the brand pink, lavishing their ads with flowers and bows, or, conversely, pandering with images of women warriors and other cheesy clichés. In other cases they use language intended to be empathetic that come across instead as borderline offensive. ‘One bank took out an ad saying, We recognize women’s special needs,’ says Barletta. ‘No offense, but doesn’t that sound like the Special Olympics?’ ” —Fast Company/03.04
    269. 269. 11. Trends Worth Trillion$$$ II: Boomer Bonanza/ Godzilla Geezer.
    270. 270. Subject: Marketers & Stupidity “It’s 18-44, stupid!”
    271. 271. Subject: Marketers & Stupidity “18-44 is Or is it: stupid, stupid!”
    272. 272. 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)
    273. 273. 44-65: “New Consumer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder
    274. 274. “The New Consumer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing
    275. 275. “Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing
    276. 276. “It’s like a tsunami coming at you. You know the tidal wave is going to hit, and it’s a question of whether we’ll be ready.” Ed Schneider, Professor of — Gerontology, USC
    277. 277. Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”
    278. 278. “NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?” USN&WR Cover/06.01
    279. 279. “Sixty Is the New Thirty” —Cover/AARP/11.03
    280. 280. 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $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
    281. 281. “Advertisers pay more to reach the kid because they think that once someone hits middle age he’s too set in his ways to be susceptible to advertising. … In fact, this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of youth.”—James Surowiecki (The New Yorker/04.01.2002)
    282. 282. Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
    283. 283. “Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher, American Demographics
    284. 284. “Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
    285. 285. “While the average American age 12 or older watched at least five movies per year in a theater, those 40 and older were the most frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
    286. 286. “Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year- olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market?” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
    287. 287. Possession Experiences /“Desires for things”/Young adulthood/to 38 Catered Experiences/ “Desires to be served by others”/Middle adulthood Being Experiences/“Desires for trancendary experiences”/Late adulthood Source: David Wolfe and Robert Snyder/Ageless Marketing
    288. 288. “ ‘Age Power’ will rule the 21 century, st and we are woefully unprepared.” Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old
    289. 289. No: “Target Marketing” Yes: “Target Innovation” & “Target Delivery Systems”
    290. 290. Marketing to Women, Martha Barletta EVEolution: The Eight Truths of Marketing to Women, Faith Popcorn & Lys Marigold Ageless Marketing, David Wolfe & Robert Snyder Marketing to the Mindset of Boomers and Their Elders, Carol Morgan & Doran Levy Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-Buitoni The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf Jensen Trading Up: The New American Luxury, Michael Silverstein & Neil Fiske
    291. 291. VII. NEW BUSINESS. NEW YOU.
    292. 292. 12. Re-inventing the Individual: Welcome to a Brand You World
    293. 293. “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
    294. 294. TIM MONICH: “the man Hollywood turns to for the right accent” Source: Boston Globe/01.25.2004
    295. 295. Thriving in 24/7 (Sally Helgesen) START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of where we are. LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism. CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business. WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking people up.”
    296. 296. “You are the storyteller of your own life, and you can create your own legend or not.” Isabel Allende
    297. 297. The Rule of Positioning “If you can’t describe your position in eight words or less, you don’t have a position.” — Jay Levinson and Seth Godin, Get What You Deserve!
    298. 298. “My ancestors were printers in Amsterdam from 1510 or so until 1750, and during that entire time they didn’t have to learn anything new.” Peter Drucker, Business 2.0 (08.22.00)
    299. 299. “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)
    300. 300. 26.3
    301. 301. 3 Weeks in May “Training” & Prep: 187 “Work”: 41 (“Other”: 17)
    302. 302. 1% vs. 367%
    303. 303. Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why don’t businesspeople do it?
    304. 304. Prep: 1 hour per 1 minute (WSC) “Forget ‘practice makes perfect.’ Substitute ‘perfect practice makes perfect.’ ” (TT) “Major difference between ‘best’ and ‘average’? ‘Best’ get as much pleasure from practice as performance.” —Ben Zander
    305. 305. Edward Jones’ Training Machine* 146 hours/employee/year New hires: 4X avg. 3.8% of payroll * #1, “The 100 Best Companies To Work For”/Fortune/01.2003
    306. 306. 13. Boss Job One: The Talent Obsession.
    307. 307. “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH
    308. 308. Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute
    309. 309. Brand = Talent.
    310. 310. Talent! Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.” Source: Business2.0/12.2002-01.2003
    311. 311. The Talent Ten
    312. 312. 1. Obsession P.O.T.* = All Consuming *Pursuit of Talent
    313. 313. Model 25/8/53 Sports Franchise GM
    314. 314. “In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed Michaels
    315. 315. “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, Organizing Genius
    316. 316. PARC’s Bob Taylor: “Connoisseur of Talent”
    317. 317. Les Wexner: From sweaters to people!
    318. 318. Talent (Not) on His Mind Norman Pearlstine, Editor-in-Chief, Time Inc., asked a magazine’s managing editor to name 10 people outside Time that the magazine should pursue: “He said, I can’t think of any.’ ” Source: New York Times/05.12.2003
    319. 319. 2. Greatness Only The Best!
    320. 320. From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent
    321. 321. 3. Performance Up or out!
    322. 322. “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
    323. 323. Message: Some people are better than other people. Some people are a helluva lot better than other people.
    324. 324. 4. Pay Fork Over!
    325. 325. “Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.” Ed Michaels, War for Talent (05.17.00)
    326. 326. 5. Youth Grovel Before the Young!
    327. 327. “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]
    328. 328. 6. Diversity Mess Rules!
    329. 329. “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
    330. 330. “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
    331. 331. CM Prof Richard Florida on “Creative Capital”: “You cannot get a technologically innovative place unless it’s open to weirdness, eccentricity and difference.” Source: New York Times/06.01.2002
    332. 332. 7. Women Born to Lead!
    333. 333. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, BusinessWeek, 11.20.00
    334. 334. 8. Weird The Cracked Ones Let in the Light!
    335. 335. 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
    336. 336. “Deviance tells Deviants, Inc. the story of every mass market ever created. What starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.” Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
    337. 337. 9. Opportunity Make It an Adventure!
    338. 338. “H.R.” to “H.E.D.” ??? Human Enablement Department
    339. 339. “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”
    340. 340. T ale nt De part m e nt
    341. 341. People Department Center for Talent Excellence Seriously Cool People Who Recruit & Develop Seriously Cool People Etc.
    342. 342. 10. Leading Genius We are all unique!
    343. 343. Beware Lurking HR Types … One size NEVER fits all. One size fits one. Period.
    344. 344. 100% IMAGINATION!* The Ritz Cookie Lady PPSI *Damn it.
    345. 345. What’s your company’s … EVP? Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP
    346. 346. EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent
    347. 347. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP
    348. 348. Talent’s “Big Two” Rules GREAT Finance Dept. = GREAT Football Team DIFFERENCES Among Cello Players = DIFFERENCES Among Hotel GMs
    349. 349. 13A. Meet the New Boss: Women Rule!
    350. 350. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, BusinessWeek, 11.20.00
    351. 351. Lawrence A. Pfaff & Associates — 2 Years, 941 mgrs (672M, 269F); 360º feedback — Women: 20 of 20; 15 of 20 with statistical significance (incl. decisiveness, planning, setting stds.) — “Men are not rated significantly higher by any of the raters in any of the areas measured.” (LP)
    352. 352. The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!
    353. 353. Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group 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: Women Managers
    354. 354. “Society is based on male standards with women seen as anomalies deviating from the male norm.” — Bi Puvaneu, Institute for Future Studies (Stockholm)
    355. 355. “On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty- first-century economic community are going to need the natural talents of women.” Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World
    356. 356. “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
    357. 357. “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
    358. 358. Work’s Rewards F: Relationships, respect, self-realization. M: Title, salary, power. (“In all my research with men, I’ve never once heard a mention about the importance of relationships.”) Source: Susan Rice, former Director of Communications, BBDO Europe (from “A Dignified Woman”)
    359. 359. Opportunity! U.S. G.B. E.U. Ja. M.Mgt. 41% 29% 18% 6% T.Mgt. 4% 3% 2% <1% Peak Partic. Age 45 22 27 19 % Coll. Stud. 52% 50% 48% 26% Source: Judy Rosener, America’s Competitive Secret
    360. 360. +/- The Boston Club: Corporate Salute (10.28.03)
    361. 361. Degree Gap* Wom:Men/Bachelor’s … 2000: 133; 2010: 142 Wom:Men/Master’s … 2000: 138; 2010: 151 * Whites, Blacks, Hispanics, Asians, Native Americans Source: The New Gender Gap/BusWeek/05.26.2003
    362. 362. “THE NEW GENDER GAP: From kindergarten to grad school, boys are becoming the second sex”—Cover story, BusinessWeek/26 May 2003
    363. 363. “Are men obsolete?” USN&WR/06.03.03 —Headline,
    364. 364. Read This! “Winning the Talent War for Women: Sometimes It Takes a Revolution” Douglas McCracken, HBR
    365. 365. “Deloitte was doing a great job of hiring high- performing women; in fact, women often earned higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male- dominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions.” Douglas McCracken, “Winning the Talent War for Women” [HBR]
    366. 366. “The process of assigning plum accounts was largely unexamined. … Male partners made assumptions: ‘I wouldn’t put her on that kind of company because it’s a tough manufacturing environment.’ ‘That client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ” Douglas McCracken, “Winning the Talent War for Women” [HBR]
    367. 367. !!!!!!!!!!!!!!! 14 to 168* *Leadership Positions/D&T/1992-2002/WIAR
    368. 368. 14. Brand Talent+: Addressing the Education Fiasco.
    369. 369. “My education was a prolonged and concerted attack on my individuality.” —Neil Crofts, Authentic
    370. 370. Losing the War to Bismarck (and Rockefeller)
    371. 371. 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
    372. 372. “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 His teacher grade in art at such a young age? 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!
    373. 373. “How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse 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 Every identified by the group as a ‘closet artist.’ The point is: school I visited was participating in the suppression of creative genius.” Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
    374. 374. Ye gads: “Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school- related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
    375. 375. The NAESP …
    376. 376. 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
    377. 377. Attributes of Those Who “Made” the 10th 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!
    378. 378. Attributes of Those Who “Made” the 10th 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!
    379. 379. Attributes of Those Who “Made” the 10th Grade History Book –Forgiveness > Permission –Bone honest! –Flawed as the dickens! – “In touch” with their followers’ aspirations –Damn good at what they do!
    380. 380. VIII. NEW BUSINESS: (NEW) BRAND INSIDE RULES
    381. 381. Message 2003 … BI > BO
    382. 382. Brand Inside Rules! “I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game” —Lou Gerstner, Who Says Elephants Can’t Dance?
    383. 383. Brand Inside Rules! “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard.” —Lou Gerstner, Who Says Elephants Can’t Dance?
    384. 384. 15. THINK WEIRD … the HVA/ High Value Added Bedrock.
    385. 385. Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
    386. 386. The THINK WEIRD: High Standard Deviation Enterprise.
    387. 387. CUSTOMERS: “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
    388. 388. “The future has already happened. It’s just not evenly distributed.” Adrian Slywotzky
    389. 389. “If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College
    390. 390. COMPETITORS: “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
    391. 391. “To grow, companies need to break out of a vicious cycle of competitive benchmarking, imitation and pursuit.” —W. Chan Kim & Renee Mauborgne, “”Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03
    392. 392. “The short road to ruin is to emulate the methods of your adversary.” — Winston Churchill
    393. 393. “This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Gameboy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken— so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/02.2003
    394. 394. Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01)
    395. 395. Suppliers: “Thereis an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.” Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
    396. 396. Boards: “Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable” —Jeffrey Sonnenfeld, Yale School of Management
    397. 397. “The Bottleneck is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma? At the top!” — Gary Hamel, “Strategy or Revolution/ Harvard Business Review
    398. 398. We become who we hang out with!
    399. 399. WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation
    400. 400. Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!
    401. 401. Big Idea/s V.C. GM Portfolio Roster
    402. 402. Innovation Index: How many of your Top 5 Strategic Initiatives score 7 or higher (out of 10) on a “Weirdness/Profundity Scale”?
    403. 403. IX. NEW BUSINESS. NEW LEADERSHIP.
    404. 404. 20. The Passion Imperative: The Leadership 50
    405. 405. The Basic Premise.
    406. 406. 1. Leadership Is a … Mutual Discovery Process.
    407. 407. “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – P.D.
    408. 408. “I don’t know.”
    409. 409. Quests!
    410. 410. Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”
    411. 411. The Leadership Types.
    412. 412. 2. Great Leaders on Snorting Steeds Are Important – but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul.
    413. 413. Whoops: Jack didn’t have a vision!
    414. 414. 3. But Then Again, There Are Times When This “Cult of Personality” (Type II Leadership) Stuff Actually Works!
    415. 415. “A leader is a dealer in hope.” Napoleon (+TP’s writing room pics)
    416. 416. 4. Find the “Businesspeople”! (Type III Leadership)
    417. 417. I.P.M. (Inspired Profit Mechanic)
    418. 418. 5. All Organizations Need the Golden Leadership Triangle.
    419. 419. The Golden Leadership Triangle: (1) Creator- Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic.
    420. 420. The Essential Tension — Keeper of the Flame of Creation (Brahma = Creator) — Keeper of the Flame of Preservation (Vishnu = Preserver) — Keeper of the Flame of Destruction (Shiva = Destroyer)
    421. 421. 6. Leadership Mantra #1: IT ALL DEPENDS!
    422. 422. Renaissance Men are … a snare, a myth, a delusion!
    423. 423. 7. The Leader Is Rarely/Never the Best Performer.
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