1. NOTE : To appreciate this presentation [and insure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”
2. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master/ Excellence. Always./ part THREE (of 7) up , up, up, up … the value added ladder (solutions-experiences-dreams-lovemarks) 18 June 2007
3. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part one (of 7) “all you need to know” (dwelling on the obvious) not your father’s world introduction to excellence. 18 june 2007
4. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master* Excellence part two (of 7) innovate. Or. Die. 18 june 2007
5. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master/ Excellence. Always./ part FOUR (of 7) “new” Markets (Stupendous Opportunity) 18 June 2007
6. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part FIVE (of 7) people! (Brand you. Talent. Health. Education. Leadership.) 18 june 2007
7. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master* Excellence part SIX (of 7) excellence. summaries. Lists. 18 june 2007
8. Part seven Extended Talent & Leadership 0618.07
9. Tom Peters’ X25* EXCELLENCE. ALWAYS. MASTER/0618.2007/Part THREE * In Search of Excellence 1982-2007
10. part three
11. Slides at … tompeters.com
12. Up, Up, Up, Up the Value-added Ladder.
13. As China and India, among others, surge, “the rest of us” [incl. the likes of Romania] must scramble to “Add Value” [mostly, “back to the future”]
14. LEAVE IT TO BEAVER.
15. Tra pp er : <$20 per beaver pelt. Source: WSJ
16. wdcp/“Wildlife Damage-control Professional”: $ 150 to “remove” “problem beaver”; $ 750 -$ 1,000 for flood-control piping … so that beavers can stay. Source: WSJ
17. Trapper = Redneck WDCP = PSF/ Professional Services Provider
18. 7X to 40X for “Solution” [rather than “service transaction”]
19. EXCELLENCE. VALUE ADDED. UP THE LADDER.
20. EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.
22. And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services * (*Integrated Systems Services Corp.): $ 55B
23. Planetary Rainmaker-in-Chief! “Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries— toward radicall y different business models . The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” — Fortune
24. “ By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have g ras p ed that this is not a p assin g fanc y , but a p otential restructurin g of the wa y the world o p erates and how value will be created in the future .” —Narayana Murthy, chairman’s letter, Infosys Annual Report
25. “ Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Cor p orate America ” —Headline/ BW /2004
26. “ UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” Source: ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
27. MasterCard Advisors
28. “ ‘ Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec
29. E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”
30. “ We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
31. California Closets: “a whole-life upgrade, not just a tidy bedroom.” — WSJ /0329.07, “Why the Container- Store Guy Wants to Be Your Therapist”
32. Hu g e : Customer Satisfaction versus Customer Success
33. “ 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
34. Gamechan g in g “Solutions”: Bet-the-Com p an y IBM UPS Xerox MasterCard GE BestBuy
35. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.
36. Up, Up, Up, Up the Value-added Ladder.
37. The Value-added Ladder/ STUFF ‘N’ THINGS Goods Raw Materials
38. The Value-added Ladder/Stuff & TRANSACTIONS Services Goods Raw Materials
39. The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Services Goods Raw Materials
40. “ ‘ Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader
41. “ He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life. Because his sole concern had been my welfare and the success of my business.” —Jim Penman, on learning how to sell ( What Will They Franchise Next? The Story of Jim’s Group )
42. Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver ‘business advantage ’ ” (“Culture- Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
43. “ The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution . One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.” * (*E.g.: CRM failure rate/Gartner: 70 %) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
44. The Value-added Ladder/ OPPORTUNITY-SEEKING Im p lemented Gamechanging Solutions Services Goods Raw Materials
45. EXCELLENCE. SOLVE IT. NO OPTION. PSF. (PSF++)
46. “ Don’t own nothin’ if you can help it. If you can, rent your shoes.” —Forrest Gump
47. “ Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy
48. “ ‘ Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that … y ou’ve become irrelevant to y our customers .” —John Battelle/ Point/Advertising Age /07.05
49. “ Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/ FT /0327 (500 of 900 Research )
50. “ [Former Fed Vice-chairman Alan] Blinder … remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution—communication technology that allows services to be delivered from afar—will put as many as 40 million American jobs at risk of being shipped out of the country in the next decade or two.”* —Wall Street Journal /0328 *Blinder: 40 million = “only the tip of a very big iceberg.”
51. Ch icago: HRMAC
52. Sarah : “ Mom, what do you do?” Mom : “I’m ‘overhead.’ ”
53. “ support function” / “cost center”/ “overhead” or …
54. Are you … “ Rock Stars of the A g e of Talent ”
55. Department Head to … Managin g Partner , IS [HR, R&D, etc.] Inc .
56. Answer: PSF
57. “ 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) ( Who Owns the Data? Using Internal Customer Relationship Management to Improve Business and IT Integration —Frank Eichorn)
58. Mantra : “Eichorn it!”
59. Every job done in W.C.W. [White Collar World] is also done “outside” … for profit!
60. Core Mechanism : “Game-chan g in g Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )
61. Series/Reinventing Work The Pro j ect 50 : Fifty Ways To Transform Every “Task” Into A Project That Matters The Professional Service Firm 50 : Fifty Ways To Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion And Innovation The Brand You 50 : Fifty Ways To Transform Yourself From An “Employee” Into A Brand That Shouts Distinction, Commitment And Passion
62. Are you the … “ Princi p al En g ine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?
63. Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age* (creators) *Murakami Teruyasu: “Age of Creation Intensification” Source: Dan Pink, A Whole New Mind
64. The “ PSF35 ” : Thirty-Five Professional Service Firm Marks of Excellence
65. The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ” 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”
66. Pointed Point of View!
67. R.POV8 * *Remarkable Point Of View/8 Words or less/“If you can’t state your position in eight words or less, you don’t have a position.” — SG
68. “ If you can’t write your movie idea on the back of a business card , you ain’t got a movie.” —Samuel Goldwyn
69. The PSF35: The Client Experience 11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?
70. “ The business of selling is not just about matching viable solutions to the customers that require them. It’s e q uall y about mana g in g the chan g e p rocess the customer will need to g o through to im p lement the solution and achieve the value p romised by the solution .”* (*E.g.: CRM failure rate/Gartner: 70 %) — Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
72. The PSF35: The People & The Leadership 18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as “ Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views
73. The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) 29. Excellence+ in EXECUTION … 100.00% of the Time 30. “Drop everything”/“Swarm” to Support a Harried-On The Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. BRAND MANIACS (Organize Around a Point of View Worth BROADCASTING) 34 . PASSION! ENTHUSIASM! 35. EXCELLENCE. ALWAYS.
74. “ P.S.F.”: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot “Talent” (see below) “Adventurous” “culture” Proprietary Point of View (Methodology) W.W.P.F./Work Worth Paying For (100%)/Outside Clients (25%+) When: Now!
75. (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!
83. PSF /Professional Service Firm/Beliefs Profession : Calling/Passion to make a difference/Excellence (always) point of view : know exactly what we stand for/ “Dramatic Difference” Client : enduring, test-the-limits relationship/Trusted advisor Solution : Rock His-her World/ “wow” / implemented “Culture change”/ >>>>>> “satisfaction”
84. “ Purchasing Officer” Thrust #1 : Cost (at All Costs*) Minimization Professional ? Or/to: Full Partner-Leader in Lifetime Value-added Maximization ? (*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
85. Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers)
86. 2 m 38 s
87. HCare CIO : “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healin g -Services Team (who happens to be a techie)
88. PSF Transformation: Credit De p artment/Trek Was Is Credit Dept Financial Services Hammer on dealers until Make dealers successful so they they pay CAN pay AR sold to 3 rd party Trek is the commercial financial commercial co. Company 23 employees 12 employees Oversee peak AR of $70M Oversee peak AR of $160M Identify risky dealers Identify opportunities Cost Center Profit Center No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments Source: John Burke/0330.06
89. Photographer: Louise Roach
90. Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm*) * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)
91. Are you the … “ Princi p al En g ine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?
92. Core Mechanism : “Game-chan g in g Solutions” Brand You(S) (“Distinct” or “Extinct”/The Talent ) + Wow! Project(s) (“Different” vs “Better”/The Work ) = PSF(S) (Professional Service Firm “model”/The Organizing Principle ) = “Corporation” as “Mega- PSF”
93. Photographer: Mike Brake
94. The FEVP/Fundamental Enter p rise Value-Added Proposition-E q uation/Mark2007 (1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”) + (2) Incredible “TALENT” Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Given Room-to-Roam & Launched on Awesome “QUESTS” = (5) Internal “ Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative P rofessional S ervice F irms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” & “GAME-CHANGING CLIENT SUCCESS”
95. Big Idea/“Meta”-Idea/Premier “Engine of Value Added” (1) The Talent : “Best Roster” of Entrepreneurial-minded Brand Yous. (2) The (Virtual) Organization : Internal or External “PSF”/Professional Service Firm working with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital” (3) The Work Product : “Game Changer”/ “Gaspworthy” WOW Projects
96. “… but I'm having a hard time imagining 300 million Brand Yous.“ “ Would you call a clerk in a purchasing department at a big insurance company "brand you"? Probably not. But what about a single Hispanic Mom, age 32, raising 3 kids in the LA area and holding 2.5 jobs to do so? I'd call her a hero, self-reliant, resilient—and a Brand You!” Posted by tom peters at November 20, 2006 10:16 PM
97. The WOW ! Project.
98. Core Mechanism : “Game-chan g in g Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )
99. “ Let’s make a dent in the universe!” —Steve Jobs
100. Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)
102. If you are not prepared to be fired over your beliefs … you are working on the wrong project. — TP
103. You! = Your Project Portfolio!
104. A “position” is not an “accomplishment.” —TP
105. Will you actually remember it as worthwhile 10 years from now?” —S.H.
106. WOW ! Projects: Nuts & Bolts (a few)
107. “ Every project we undertake starts with the same question: ‘ How can we do what has never been done before ?’” —Stuart Hornery, Lend Lease
108. Playmate!* Playpen! Prototype! *Can be Client, supplier … as well as Insider
109. Where to look for “Playmates” : F.F.F.F. (Find a Fellow Freak Faraway)
110. F2F !/ f2fK !/ [email_address] / R.F!A. * *Freak-to-Freak/Freak-to-Freaky Kustomer/ One at a Time/ Ready.Fire!Aim.
111. Forward, march : The “Sri Lanka Stratagem”
112. Where NOT to look for “Playmates” : BIG Division, BIG Customer, BIG Vendor, UP
113. Culture of Prototyping “ Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” —Michael Schrage
114. Starting a WOW ! Projects Epidemic: Demos, Heroes, Stories!
115. Premise : “ Ordering” Systemic Change is a Waste of Time!
116. “ Somewhere in your organization, groups of people are already doing things differently and better. To create lastin g chan g e, find these areas of p ositive deviance and fan the flames .” —Richard Tanner Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR
118. JKC 1. Scour for renegades; wine & dine. 2. Go outside for funds.
119. Demo = Story “A key – perhaps the key – to leadership is the effective communication of a stor y.” —Howard Gardner, Leading Minds: An Anatomy of Leadership
120. Best story wins!
121. REAL Org Change : Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors / Support Groups / End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant
122. “ Some people look for things that went wrong and try to fix them. I look for thin g s that went ri g ht, and tr y to build off them .” —Bob Stone (Mr ReGo)
123. Demos! Heroes! Stories!
124. “ Make your own McKinsey” (AP)
125. Build a “School on top of a school”/Continuing-Exec Ed (The Parallel Universe Strategy)
127. Tempo: He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd
128. Subversive Change Be(very)ware “genetic constraints” (history’s looong arm) You must “do” Gandhi Hire weird (fulltime or temp) Find the extant crazies (troll for them via offers to join weird project teams) Create a (quiet) “Crazies Club”/Keep extendin’ the Web Create “boondocks projects” by the truckload (with partners of every flavor) Understand: Yours is a “protection racket” Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death) TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd
129. SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?” TP: “ Yes ! Work with him/her to re-frame their principal project to the point that their e g o is fully engaged and it becomes something of a ‘life compulsion.’ ” * * “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”
130. EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.
131. “ Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
132. “ 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
134. WHAT CAN BROWN DO FOR YOU?
135. “ Lexus sells its cars as containers for our sound systems. It’s marvelous.” —Sidney Harman/ Harman International
136. Up, Up, Up, Up the Value-added Ladder.
137. The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
138. Be y ond the “Transaction”/ “Satisfaction” Mentalit y “Good hotel”/ “Happy guest”/ “Exceeded Expectations” vs. “Great Vacation ”/ “Great Conference ”/ “Operation Personal Renewal ”
139. “ Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Cor p orate America ” —Headline/ BW /2004
140. Photographer: Fernando Rodrigues
141. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.
142. 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
143. Safe, On-time and ... “We defined personality as a market niche. We seek to amaze, surprise, entertain.” — Herb Kelleher, SWA / LUV
144. Warren Goes Shopping …
145. Q : “Why did you buy Jordan’s Furniture?” A : “Jordan’s is spectacular. It’s all showmanship.” Source: Warren Buffet interview/ Boston Sunday Globe /12.05.04
146. Caution: “ … focus on ‘engagement,’ not ‘experience’ …” —Martin Buber, I and Thou , 1927 (from Steve Yastrow, We )
147. C X O * *Chief e X perience Officer
148. First Step (?!) : Hire a theater director , as a consultant or FTE!
149. “ 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.]
151. Words! — Magician of Magical Moments — Maestro of Moments of Truth — Recruiter of Raving Fans — Impresario of First Impressions — Wizard of WOW — Captain of Brilliant Comebacks — Director of Electronic Customer Experiences — Conductor of Customer Intimacy — King of Customer Community — Queen of Customer Retention — CEO of Ownership Experience — Managing Director of After-sales Experience
152. <TG W vs. >TG R [Things Gone WRONG /Things Gone RIGHT ]
153. “ Perfection is achieved only by institutions on the point of collapse.” — C. Northcote Parkinson
154. 3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture Source: Title/Cover Story, BW , 0611.07 ( “What’s remarkable is how fast a culture can be torn apart,” 3M lead scientist; “In an innovation economy, [6 Sigma] is no longer a cure all”/ BW )
155. “ What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Oakakura, The Book of Tea
156. “ Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been washed for the third time, the stone planters and the trees are well sprinkled with water, moss and lichens are shining with a fresh verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Oakakura, The Book of Tea
157. EXCELLENCE. DRAMATIC. DIFFERENCE. DOABLE.
158. “ 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 s imilar quality.” —Kjell Nordstr ö m and Jonas Ridderstr å le, Funky Business
159. This is not a “ mature category.”
160. This is an “ un distinguished category.”
161. “ When we did it ‘right’ it was still pretty ordinary.” —Barry Gibbons on “Nightmare No. 1”
162. “ Companies have defined so much ‘best practice’ that they are now more or less identical.” —Jesper Kunde, Unique Now ... Or Never
164. $415 /SqFt/Wal*Mart $ 798 /SqFt/Whole Foods
166. “ It’s simple, really, Tom. Hire for s , and, above all , p romote for s.” —Starbucks middle manager/field
167. “ A man without a smiling face must not open a shop.” —Chinese Proverb
168. #1/100 “ Best Companies to Work for” / 2005
170. EXCELLENCE. NO EXCUSES.
171. WallopWal*Mart16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company
172. The “Small Guys” Guide: Wallop Wal*Mart16 * Niche-aimed. (Never, ever “all things for all people,” a “mini-Wal*Mart.) * Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) * “ Dramaticall y Different ” (La Difference ... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) * Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) * Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)
173. “ 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 Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thin g that all these companies have in common is that the y have nothin g 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 it’s 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
174. The “Small Gu y s” Guide: Wallop Wal*Mart16 * Hands-on, emotional leadership. (“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!”) * A community star! (“Sell” local-ness per se. Sell the hell out of it!) * An incredible experience, from the first to last moment—and then in the follow-up! (“These guys are cool! They ‘get’ me! They love me!”) * DESIGN DRIVEN! (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the professional services.)
175. The “Small Gu y s” Guide: Wallop Wal*Mart16 * Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) * Sophisticated use of information technology . (Small-“ish” is no excuse for “small aims”/execution in IS/IT!) * Web-power! (The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.) * Innovative! (Must keep renewing and expanding and revising and re-imagining “the promise” to employees, the customer, the community.)
176. The “Small Gu y s” Guide: Wallop Wal*Mart16 * Brand-Lovemark* (*Kevin Roberts) Maniacs ! (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”) * Focus on women-as-clients. (Most don’t. How stupid.) * Excellence! (A small player … per me … has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen niche!)
177. The Small*Mart Revolution: How Local Businesses Are Beating Local Competition —Michael Shuman
178. tom peters: what I’ve Learned about “Small Business”
179. Passion for PRODUCT. OBSESSION With Product . LOVE The Product. Aim To Be “ONLY ONES WHO DO WHAT WE DO.” Keep ADDIN’ Stuff. Invest “UNWISELY” in R&D. Reside Permanently In The DISCOMFORT Zone. “Unhealthy” PARANOIA Is A Good Thing. Add Clients That PUSH-PULL. SELL. SELL. SELL. SELL. Go For Broke: CUSTOMER CONTACT PEOPLE. PERFECTION: Customer Contact People. Hire for ATTITUDE. INVITE On An Adventure. GREAT CFO/Biz Guy-Gal. NASTY CFO/Biz Guy-Gal. QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)
180. GREAT Logo. DESIGN! “OVERDO” Marketing Materials. WOMEN Roar. WOMEN Rule. WOMEN Buy. Diversity = $$$$$$ Be RELENTLESS. Cut And RUN. Product Includes-Features the PACKAGING. Define Your DRAMATIC DIFFERENCE (R.P.O.V.8) Best STORY Wins. DRESS For Success. First Goal: AMUSE Yourself. Know YOURSELF. DON’T Do Stuff You Hate. “Over-invest” In RELATIONSHIPS. (R.O.I.R.: Return On Investment in Relationships) SYSTEMATICALLY “Manage” Relationships. “Work” The SUPPORT PEOPLE In Client Orgs.
181. BLOG As If Your Life Depended On It. SOPHISTICATED Use Of Infotech. RESPONSE To Problems. Make ’Em PAY. CLOSE The Sale. Invest BIGTIME In PR. Media FRIENDLY. Live-To- SCHMOOZE. Fun/Laughter = $$$$ MBWA: Stay In Touch. “You Must Be The Change You Wish To See In The World”/ GANDHI 5K For 5M. Your CALENDAR Never Lies. OUT: Pastels. IN: T e c h n i c o l o r
182. JUST SAY “NO” TO C.E.O.: CIO /Chief Innovation Officer. CSO /Chief Sales Officer. CWO / Chief Wow Officer EXCELLENCE Is Very Cool. “MICRO-MANAGE” Your Reputation. Wear Your Integrity On Your SLEEVE. KEEP Your Promises. EXECUTION !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! “A Man Without A Smiling Face MUST NOT Open His Shop.” RECOGNITION! Work HARD, Not Smart. “Insanely Great.” THE STANDARD.
184. Measure #1: R.O.I.R. * * Return On Investment In Relationships
185. Sell Sell Sell
186. Small Giants: Companies That Choose To Be Great Instead Of Big —by Bo Burlingham
187. Small Giants/Bo Burlingham "First, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create." "Second, the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow." "Third, each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business — a relationship that went well beyond the usual concept of `giving back.'" "Fourth, they cultivated exceptionally intimate relationships with customers and suppliers , based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises."
188. Small Giants/Bo Burlingham "Fifth, the companies also had what struck me as unusually intimate workplaces ." "Sixth, I was impressed by the variety of corporate structures and modes of governance that these companies had come up with." "Finally, I noticed the passion that the leaders brought to what the company did. They loved the subject matter , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."
189. The “New German Miracle”* = The “Old German Miracle” = Mittlestand** *Among other things, #1 in exports **”No doubt of it, tom [BASF exec/04.07]
190. “ We share the Zingerman’s experience selling food that makes you happy, giving service that makes you smile—in passionate pursuit of our mission, showing love and caring in all our actions to enrich as many lives as we possibly can.” — Zingerman’s Guide to Giving Great Service / Ari Weinzweig/Ann Arbor MI
191. 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
192. I [“Bacteria Man”] HEREBY PLEDGE: When asked, “What are some examples of companies stepping up to today’s challenges?” … I will … NEVER AGAIN … offer an example of a Giant Company; instead I’ll refer to Cirque du Soleil , Donnelly’s Weatherstrip Service , 3K tanning salons , 10.6M women-owned businesses (or the typically/95+% female recipients of micro-lending) …* *There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”
193. Ste p hen Ja y Gould (& Me*) : Bacteria rule! Sizeable cases [e.g. humans] are reasonably insignificant anomalies. (*Call me “Bacteria Tom”)
194. Hmmm … Bacteria. (“Left tail” limits.) Productivity of small. Failure rate of Big Mergers. Failure rate of Big Companies. Terrorists. Galbraith vs Hayek.
195. Productivit y Pandemic IMAOA: Institute of Modest Advances in (Many, Many) Ordinary Activities
196. The “Missing 900M” Will the Boat Sink the Water: The Life of China’s Peasants — C hen Guidi and Wu Chuntao
197. Jim’s Group Jim Penman/“Empire Builders”/ MT / Jan/Feb 2006/Australia
198. Jim’s Group : Jim Penman.* 1984: Jim’s Mowing. 2006: Jim’s Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. *Ph.D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006
199. Basement Systems inc/ seymour ct
200. the met/ big picture
201. EBF* to EBI ** “engage the kids around their passions.” —Dennis Littky/ The Met-Big Picture Schools * Education By Fiat ** Education By Interest
202. Planetree : A Radical Model for New Healthcare/Healing/ Wellness Excellence
203. "All sane persons agree that 'healthcare needs an overhaul.' And that's where the agreement stops. Healthcare issues are thorny, and system panaceas are about as likely as the sun rising in the West. But there is good news here and there — and great news courtesy the Planetree Model. "In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the patient and frontline staff often get lost in the shuffle. Enter Planetree. While oceanic systemic solutions remain out of reach, Planetree provides a remarkable demonstration of what healthcare — with the patient at the center — can be all about; and is all about among Planetree Alliance members. "I know this may sound ridiculous, but everything about the 'model' works. It is great for patients and their families — and is truly about humanity and healing and health and long-term wellness, not just a 'fix' for today's problem. It is great for staff—Planetree-Griffin is rightly near the top of the 'best places to work in America' list, year in and year out. And Planetree also works as a 'business model'—any effectiveness measure you can name is in the Green Zone at Griffith. "For 25 years my 'gig' has been 'excellence.' Put simply, there is no better exemplar of customer-centered, employee-friendly excellence, in any industry, than Griffin-Planetree. The Planetree model works—and in my extensive work in the health sector, I 'sell' it shamelessly, and pray that my clients are taking it all in." tom peters/response to request for comment on Planetree
204. The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
205. The Patient-Famil y Experience “ Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
206. Press Ganey Assoc : 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome PS directl y related to Staff Interaction PS directl y correlated with Employee Satisfaction Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
207. “ There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free . Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
208. Care Partner Programs (IDs, discount meals, etc.) Unrestricted visits (“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members may be present.”) Collaborative Care Conferences Clinical Guidelines Discussions Family Spaces Pet Visits (POP: Patients’ Own Pets) Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
209. Griffin : Music in the parking lot; professional musicians in the lobby (7/week, 3-4hrs/day) ; 5 pianos ; volunteers (120-140 hrs arts & entertainment per month). Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
210. “ Planetree Look” Woods and natural materials Indirect lighting Homelike settings Goals: Welcome patients, friends and family … Value humans over technology .. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beauty Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
211. Access to nurses station: “Happen to” vs “Happen with” Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
212. Conclusion: Caring/Growth “Experience ”
213. “ It was the goal of Planetree to help patients not only get well faster but also to stay well longer.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel (Planetree Alliance/Griffin Hospital)
214. Care!/Love!/Spirit! Self-Control! Connect!/learn!/ involve!/Engage! Understanding!/Growth! De-stress!/heal! Whole patient & family & friends! be well!/stay well!
215. “ Planetree is about human beings caring for other human beings.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)
217. Griffin Hos p ital/Derb y CT (Planetree Alliance “HQ”) Results : Financially successful. Expanding programs-physically. Growing market share. Only hospital in “100 Best Cos to Work for”— 7 consecutive years, currently #6. —“Five-Star Hospitals,” Joe Flower, strategy+business (#42)
218. “ What’s Really Propping Up the Economy: Healthcare has added 1.7 million jobs since 2001. The rest of the private sector? None .” Source: Title, cover story, BusinessWeek , 0925.2006
219. Excellence. Bank on it. (commerce bank.)
220. “ We defy conventional wisdom, operating more like the young bucks at Starbucks than the old farts at the Bank of America.” —Vernon Hills
221. The Commerce Bank Model “Are you going to cost cut your way to prosperity? Or … are you going to spend your way to prosperity?” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
222. The Commerce Bank Model *deposit focused. *Customer value-added. *Great retail experience. *Best facilities. Best locations. *No stupid rules. *Driven by revenue growth, not cost reduction. Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
223. The Commerce Bank Model “cost cutting is a death spiral.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
224. “ Our whole story is growing revenue.” —Vernon Hills (Top-line driven; standard is bottom-line driven by cost cutting)
225. The Commerce Bank Model “ over -invest in our people, over -invest in our facilities.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
226. The Commerce Bank Model “we want them in our stores.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
227. Commerce Bank: From “Service” to “Experience” 7X. 730A-800P. F12A. * * ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
228. The Commerce Bank Model “we don’t accept the 80/20 theory. We believe every customer has value, that you can’t tell which one is the high-value customer over time, and that that philosophy degrades the brand.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
229. The Commerce Bank Model “every computer at commerce bank has a special red key on it that says, ‘found something stupid that we are doing that interferes with our ability to service the customer? Tell us about it, and if we agree, we will give you $50.’” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
230. “ You do not merely want to be the best of the best. You want to be considered the only ones who do what you do .” —Jerry Garcia
231. Up, Up, Up, Up the Value-added Ladder.
232. The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
233. EXCELLENCE. SOUL I. DESIGN.
234. Franchise Lost! TP: “ How many of you  really crave a new Chevy?” NYC/IIR/061205
235. All E q ual Exce p t … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Desi g n is the onl y thin g that differentiates one p roduct from another in the market p lace .” —Norio Ohga
236. “ Design is treated like a religion at BMW.” —Fortune
237. “ We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation.” —Steve Jobs
238. “ With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness
239. “ Having spent a century or more focused on other goals—solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, we’re addin g sensor y , emotional a pp eal to ordinar y function .” — Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness
240. C D O * *Chief Design Officer
241. “ Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.” —Roger Martin/Dean/Rotman Management School/ University of Toronto
242. Message (?????): Men cannot design for women’s needs.
243. “ Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female . ” Source: Philippe Starck, Harvard Design Magazine
244. Westin’s … Heavenly Bed
245. “ The lowliest household tool has become an object of color, texture, personality, whimsy, even elegance. Dozens, probably hundreds, of distinctively designed toilet-brush sets are available—functional, flamboyant, modern, mahogany. For about five bucks, you can buy Rubbermaid’s basic plastic bowl brush with caddy, which comes in seven different colors, to hide the bristles and keep the drips off the floor. For $8 you can take home a Michael Graves brush from Target, with a rounded blue handle and translucent white container. At $14 you can have an OXO brush, sleek and modern in a hard, shiny white plastic holder that opens as smoothly as the bay door on a science-fiction spaceship. For $32, you can order Philippe Starck’s Excalibur brush, whose hilt-like handle creates a lid when sheathed in its caddy. At $55 there’s Stefano Giovannoni’s Merdolino brush for Alessi … Cross the $100 barrier, and you can find all sorts …” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness
247. D esi g n is to Experiences as PSF is to Solutions
248. Bottom Line.
249. Design “is” … WHAT & WHY I LOVE. LOVE .
250. I LOVE my …
251. All Time No.1 (TP) Ziplocs
252. Design “is” … WHY I GET MAD. MAD .
253. Wanted : THE DESIGNER OF MY KRUPPS/ CUISINART COFFEE-MAKER. Major Reward!
254. Design is … never neutral .
255. Hypothesis: DESIGN is the p rincipal difference between love and hate!
256. THE DESIGN49
257. Better By Design The Design49 Tom Peters/Auckland/30March2005
258. Better By Design: Tom’s Design49 1. There are only 2 rules. 2. Rule #1: You can’t beat Wal*Mart on price or China on cost. 3. Rule #2: See Rule #1. 4. Econ Survival = Innovate and Sprint Up the Value-added Chain … OR DIE ! 5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE “SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE. 6. Design as Soul-Core Competence #1 is a “cultural imperative,” not a “programmatic” or “process” or “throw $$$ at it” issue! 7. CDEs (Culturally Design-driven Enterprises) use Design-Experiences-Dream Merchantry-Lovemarks as the Lead Dog(s) in the OlympianInnovation-“Strategy”-Value Proposition Struggle. 8. “Dream Merchant” makes as much sense for IBM or GE or UPS as for Starbucks!
259. Better By Design: Tom’s Design49 9. At CDEs, Design is the Heart of the “Emotional Branding” Process. 10. CDEs wholeheartedly embrace ideas such as “mystery,” “surprise,” sensuality.” 11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great” and “Gasp-worthy” and “Passion” and “Love”! ( Axiom: Extreme language breeds extreme products and services .) 12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise = Crappy enterprise.) 13. CDEs love “strange” and “weird.” 14. CDEs scour the earth for “strange” and “weird” people. (CDEs know: FREAKS RULE !) 15. CDEs are “extremists.” (KR: “Avoid moderation.”) 16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH! (We must use non-linear measures!)
260. Better By Design: Tom’s Design49 17. CDEs seek Discontinuities. (JG: “We don’t want to be the best of the best, we want to be the only ones who do what we do.”) 18. CDEs are “respectful” of their customers, but not slaves to their customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: “Listening to customers” is over-rated! Focus groups suck!) 19. But: “Lead” customers are an entirely different matter! 20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo Brand”!) 21. CDEs abide by Phil Daniels’ Credo: “REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES.” 22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she is the CEO). 23. Design Directors at large companies not worth $5,000,000 per year aren’t worth hiring! (DD$21M.)
261. Better By Design: Tom’s Design49 24. Great Designers are “10,000X” better than “good designers.” 25. At CDEs CFOs are never former CFOs! The CEO always doubles as the Chief Innovation Officer. 26. CDEs are “Top-line Obsessed.” 27. CDE execs know there is a chasm between “excellent design” and “game-changer design.” 28. Gasp-worthy design is a moving target! 29. No Broadway shows last forever. So too, great designers! (Hire them! Pay them! Cherish them! Nurture them! Fire them! ) 30. Great design wrestles incessantly with the issue of “cool” and/versus “usability.”! 31. Designers “get” the stunning principles of Wabi Sabi. (Great designers side with Chris Alexander against the A.I.A.) 32. CDEs “get” the “feminine side” of life.
262. Better By Design: Tom’s Design49 33. CDEs Know I: WOMEN BUY EVERYTHING! 34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. 35. CDEs understand that “We’re getting’ older”—and vigorously embrace the Boomer-Geezer market. 36. CDEs understand: Boomers-Geezers have “ALL THE MONEY” … are by and large healthy … and have 20 or so years left! 37. CDEs wonder: Can 28-year-olds design “experiences” for 68-year-olds? 38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-Greenie-Wellness. 39. “Design-mindfulness” is as apparent in the CDE’s facilities as in its products-services!
263. Better By Design: Tom’s Design49 40. “Design mindfulness” is as apparent in HR and Engineering and Logistics and IS/IT as in NPD. 41. CDEs will settle for nothing less then “beautiful,” “gasp-worthy” Business Processes/Infrastructure! 42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!) (450/8.) 43. “Design-mindfulness”/“aesthetic sensibility” is a requisite for Every Hire—including waiters and waitresses in Fast Food outlets and Housekeepers in hotels. 44. Gasp-worthy Design is as essential to “service companies” as to “manufacturers.” 45. Gasp-worthy design can transform any “commodity,” including ag!
264. Better By Design: Tom’s Design49 46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER. 47. “Small” is no disadvantage in an Age of Creativity! 48. There is no such thing as a “National Design Advantage” unless the current school system is Destroyed & Re-imagined —to emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness … the suppression thereof … typically begins at Age 4 .) 49. How sweet it is! (If your head is screwed on right.)
265. EXCELLENCE. SYSTEMS. DESIGN. K.I.S.S.
267. Grunge Removal 101 Ellie Mae
268. Great design = One -page business plan (Jim Horan)
269. First Steps: “Beauty Contest”! <ul><li>1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form. </li></ul><ul><li>Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions: Beaut y. Grace . </li></ul><ul><li>Clarit y. Simplicit y. </li></ul><ul><li>3. Re-invent! </li></ul><ul><li>Repeat, with a new selection, </li></ul><ul><li>every 15 working days. </li></ul>
270. “ One bank is currently claiming to … ‘ levera g e its g lobal foot p rint to p rovide effective financial solutions for its customers b y p rovidin g a g atewa y to diverse markets .’” — Charles Handy
271. “ I assume that it is just saying that it is there to ‘ hel p its customers wherever the y are’ .” — Charles Handy
272. “ Seek honest, minimalist management. Look for companies run by a team that explains things clearly and briefly. … You can tell a lot about the firm by reading an annual report or two. If management can’t explain the business in p lain English, move on to another firm . If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.” —Seth Jayson, “Stocks for the Lazy Investor,” The Motley Fool
273. Was “Deposits may be made by a minor and withdrawals thereof may be made by a minor without the consent of a parent or guardian, neither of whom, in that capacity, shall have any right to attach or interfere in any manner with such deposits or withdrawals.”
274. Is “Minors may make deposits and withdrawals from their accounts without the consent or interference of a parent or guardian.”
275. EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.
276. Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams . This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result .” — Judy George, Domain Home Fashions
277. “ 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
278. “ We don’t ‘close units,’ we build homes.” —Larry Webb, John Laing Homes
279. “ Soft Skills, Hard Dollars” Source: Headline, BigBuilder, September 2006
280. 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
281. Starbucks = Sha p er of Culture : “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment .” —Howard Schultz (“The Starbucks Aesthetic,” NYT , 10.22.06)
282. Up, Up, Up, Up the Value-added Ladder.
283. The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
284. C DM * *Chief Dream Merchant
285. “ Dreams Come True”: IBM UPS
286. “ Dreams Come True”: Harley Davidson Jim’s Group UPS Starbucks John Laing Homes
287. 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
288. Six Market Profiles 1. Adventures for Sale/ IBM-UPS 2. The Market for Togetherness, Friendship and Love/ IBM-UPS 3. The Market for Care/ IBM-UPS 4. The Who-Am-I Market/ IBM-UPS 5. The Market for Peace of Mind/ IBM-UPS 6. The Market for Convictions/ IBM-UPS Rolf Jensen/ The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
289. “ 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 facin g the fifth kind of societ y : the Dream Societ y. … 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
290. EXCELLENCE. SOUL II. THE STORY.
291. “ Storytelling is the core of culture.” — Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld , James Twitchell
292. Best story wins!
293. Market Power = Story Power
294. C ST O * *Chief Storytelling Officer
295. “ We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Com p anies will thrive on the basis of their stories and m y ths . Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen Institute for Future Studies
296. E motion is to Dreamketing as Design is to Experiences
297. EXCELLENCE. VALUE-ADDED LADDER III. ALL YOU NEED IS LOVE.
298. “ Brands have run out of juice. They’re dead .” —Kevin Roberts/Saatchi & Saatchi
299. “ Brands Are Out of Juice” 1. Brands are worn out from overuse. 2. Brands are no longer mysterious. 3. Brands can’t understand the new consumer. 4. Brands struggle with good old-fashioned competition. 5. Brands have been captured by formula. 6. Brands have been smothered by creeping conservatism. Source: Lovemarks: The Future Beyond Brands , Kevin Roberts
300. Kevin Roberts: Lovemarks !
301. “ When I first suggested that Love was the way to transform business, grown CEOs blushed and slid down behind annual accounts. But I kept at them. I knew it was Love that was missing. I knew that Love was the only way to ante up the emotional temperature and create the new kinds of relationships brands needed. I knew that Love was the only way business could respond to the rapid shift in control to consumers.” —Kevin Roberts/ Lovemarks
306. Brand …………………………………………………. Lovemark Recognized by consumers ………………. Loved by People Generic ………………………………………………… Personal Presents a narrative ………………….. Creates a Love story The promise of quality ……………… A touch of Sensuality Symbolic ………………………………………………….. Iconic Defined ………………………………………………….. Infused Statement ………………………………………………….. Story Defined attributes ……………………... Wrapped in Mystery Values ………………………………………………………. Spirit Professional …………………………... Passionately Creative Advertising agency ………………………….. Ideas company Source: Kevin Roberts, Lovemarks
307. “ When we were working through the essentials of a Lovemark, M y ster y was always at the top of the list.” — Lovemarks: The Future Beyond Brands , Kevin Roberts
308. “ Lovemarks are owned by the people who love them.” — Lovemarks: The Future Beyond Brands, Kevin Roberts
309. Tattoo Brand : What % of users would tattoo the brand name on their body?
310. To p 10 “Tattoo Brands”* Harley .… 18.9% Disney .... 14.8 Coke …. 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 * BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound , Martin Lindstrom
311. Top 10 “Tattoo Brands”* Harley .… 18.9% Disney .... 14.8 Coke …. 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex …. 5.6 Your name here … ?? Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 * BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound , Martin Lindstrom
312. “ Shareholders very seldom love the brands they have invested in. And the last thing they want is an intimate relationship. They figure this could warp their judgment. They want measurability, increasing returns (always) and no surprises (ever). Imagine a relationship with someone like that! “No wonder so many brands lost the emotional thread that had led them to their extraordinary success and turned them instead into metric-munchers of the lowest kind. Watch for the sign: HEADS, NOT HEARTS, AT WORK HERE .” —Lovemarks: The Future Beyond Brands , Kevin Roberts
313. 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)
314. Up, Up, Up, Up the Value-added Ladder.
315. The Value-added Ladder/ ECSTASY Lovemark Dreams Come True Spellbinding Experiences Services Goods Raw Materials
316. C L O * *Chief Lovemar k Officer
317. P assion is to Lovemarks as Emotion is to Dreamketing
318. Up, Up, Up, Up the Value-added Ladder.
319. Ladder.2007: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
320. New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Lovemark/ F Dreams Come True/ F Spellbinding Experiences/ F Gamechanging Solutions/ F Services/ F Goods/ M Raw Materials/ M
321. EXCELLENCE. DOES MATTER MATTER?
322. “ What Isn’t Matter Is What Matters” —section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld , James Twitchell
323. VA “Teaching Moment” “ Andy pointed to a molding, about halfway up the wall …”
324. The Boot … and Timberland The Tomato / Farmer … and Campbell’s
325. Ladder.2007: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
326. EXCELLENCE. NEW VALUE EQUATION. NEW “C-levels”.
327. C.E.O. to C.D.O.
328. C R O * *Chief Revenue Officer
329. C X O * *Chief e X perience Officer
330. C DM * *Chief Dream Merchant
331. C F O* *Chief Festivals Officer
332. C PI * *Chief Portal Impresario
333. C W w M* *Chief WikiWorld Maniac
334. C C O* *Chief Conversations Officer
335. C L O * *Chief Lovemark Officer
336. C S O* *Chief Seduction Officer
337. C ST O * *Chief Storytelling Officer
338. C D O * *Chief Design Officer
339. C ta O * *Chief talent acquisition Officer
340. C FA O * *Chief freaks acquisition Officer
341. C Q O * *Chief quest-meister
342. C T O * *Chief Thrills Officer
343. C W O * *Chief WOW Officer
344. C D o * Chief DESTRUCTION Officer
345. C TR o * *Chief Transcendence Officer
346. C ! O * *Chief ! Officer
347. Pause. “Little Stuff.”
348. Up, Up, Up, Up the Value-added Ladder. “The Little Things”
349. Thank you, Ann !!!
350. Thank You!
351. F L O W E R P O W E R
352. “ Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay
353. The … Jim Jeffords oversight!
354. Remember what your mama told you! * *It’s first impressions, yo-yo!
355. The Manager’s Book of Decencies: How Small gestures Build Great Companies. —Steve Harrison, Adecco Servant Leadership —Robert Greenleaf One: The Art and Practice of Conscious Leadership —Lance Secretan, founder of Manpower, Inc.
356. “ Leaders ‘ SERVE ’ people. Period.” —Anon.
357. Servant Leadership /Robert Greenleaf 1. Do those served grow as persons? 2. Do they, while being served, become healthier wiser, freer, more autonomous, more likely themselves to become servants?
358. Leader as Servant Decency as the bedrock of effective corporate culture Host , Hostmanship , Welcoming Leader as metaphor for those who would seek the wholehearted engagement of others
359. Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)
360. Consider: “We do no great things, only small things with great love.” —Mother Teresa Consider: “What would happen if we looked at a customer and saw the face of God in them? To most people it sounds like a lofty idea. But if y ou see the face of God in a flower, wh y wouldn’t y ou see it in the face of a customer ? If we treated customers and honored the God within them—if we loved them—we would not need a ‘quality program’.” —Lance Secretan, founder of Manpower, Inc. and most recently author of One: The Art and Practice of Conscious Leadership
361. “ Be kind, for everyone you meet is fighting a great battle.” —Philo of Alexandria
362. “ We do no great things, only small things with great love.” —Mother Teresa
363. Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What are the “little things” you (perhaps unconsciously) do that cause people to shrivel—or blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is your style of “hashing things out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think you’re “in touch with the pulse of things around here”? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are “so much BS”?]
364. “ Sorry, I’ve got to go—the HR people get on me if I don’t go do my ‘shake hands-chat up’ duty” —president, large division of large company in the _______ industry
365. THE PROBLEM IS RARELY THE PROBLEM.
366. THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *RMN, M Stewart, WJC, “Scooter” Libby
367. OFTEN AS NOT/MORE OFTEN THAN NOT THE UNDERLYING PROBLEM IS NOT MUCH OF A PROBLEM.
368. PERCEPTION IS ALL THERE IS. PERIOD .* *From Whole Foods to IBM to the corner deli
369. Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE - MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.
370. “ WHY NOT JUST TELL THE TRUTH?” —Raymond Carver
371. POWER WORDS! “ I’m sorry.”
373. “ I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three . Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade
374. “ Really Important Stuff”: Roger’s Rule of Three !
375. “ Dennis, you need a … ‘To-don’t ’ List !”
376. “ The one thin g you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know
377. SWEET SPOT: SEEKING THE DIS COMFORT ZONE.
378. “ Do one thing every day that scares you.” —Eleanor Roosevelt
379. “ Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.” “A typical day at the office for me begins by asking, ‘ What is impossible that I am going to do today ?’” —Daniel Lamarre, president, Cirque du Soleil
380. “ Little Stuff” (the end) (almost)
381. Conrad Hilton, at a big celebration of his life, on “the most important lesson you’ve learned in you long and distinguished career”: “ remember to tuck the shower curtain inside the bathtub”