60,000* *New factories in China opened by foreigners/ 2000-2003 / Edward Gresser, Progressive Policy Institute/ Wall Street Journal 09.27.04
Re-ima g ine! Summer 2004: Not Your Father’s World II.
“ A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia ( FT /09.17.04)
“ We’re now entering a new phase of business where the group will be a franchising and management company where brand management is central.” —David Webster, Chairman, InterContinental Hotels Group “InterContinental will now have far more to do with brand ownership than hotel ownership.” —James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune , 09.16, on the sacking of CEO Richard North, whose entire background is in finance
“ 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
“ Thaksinomics” (after Thaksin 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
“ 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
“ 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
2. Re-ima g ine Permanence : The Emperor Has No Clothes!
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
3. Re-ima g ine Organizin g I : IS/IT Leads the (Virtual) Way!
“ 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
“ Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy
07.04/TP In Nagano … Revenue: $10B FTE: 1* *Maybe
Not “out sourcing” Not “off shoring” Not “near shoring” Not “in sourcing” but … “Best Sourcing”
4. Re-ima g ine Or g anizin g II : The Professional Service Firm (“PSF”) Imperative.
Sarah : “ Papa, what do you do?” Papa : “I’m ‘overhead.’ ”
Sarah : “ Papa, what do you do?” Papa : “I manage a ‘cost center.’ ”
Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
“ 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)
5. Re-ima g ine Business’ Basic Value Pro p osition : PSFs Unbound/ The “Solutions Imperative.”
And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.” (BW) IBM Global Services: $35B
“ Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America ” —Headline/ BW /07.19.2004
New York-Presbyterian : 7-year, $500M consulting (systemic) and equipment contract with GE Medical S y stems Source: NYT /07.18.2004
6. Re-ima g ine Enter p rise as Theater I : A World of Scintillating “Experiences.”
“ 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
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
The “Experience Ladder” Experiences Services Goods Raw Materials
6A. Re-ima g ine Enter p rise as Theater II : 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 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
“ 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
Experience Ladder/TP Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials
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
Six Market Profiles 1. Adventures for Sale/ IBM 2. The Market for Togetherness, Friendship and Love/ IBM 3. The Market for Care/ IBM 4. The Who-Am-I Market/ IBM 5. The Market for Peace of Mind/ IBM 6. The Market for Convictions/ IBM Rolf Jensen/ The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
7. Re-ima g ine the “Soul” of Enter p rise : Design Rules!
“ 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 adding sensory, emotional appeal to ordinary function .” — Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness
“ 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
All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” Norio Ohga
8. Re-ima g ine the Fundamental Sellin g Pro p osition : “It” all adds up to … THE BRAND (THE STORY).
“ 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. Companies will 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
Kevin Roberts*: Lovemarks! *CEO/Saatchi & Saatchi
“ 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
9. Re-ima g ine the Roots of Innovation : THINK WEIRD … the High Value Added Bedrock.
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
“ To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” —W. Chan Kim & Ren ée Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times /08.11.03
“ 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 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 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 /02.2003
“ 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
10. Re-ima g ine the Customer : A Trend Worth Trillion$$$ … Women Roar .
????????? 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%
91% women: ADVERTISERS DON’T UNDERSTAND US . (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)
FemaleThink / Popcorn & Marigold “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.”
11. Re-ima g ine Excellence I : The Talent Obsession.
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
Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” —Nathan Myhrvold, former Chief Scientist, Microsoft
12. Re-ima g ine Excellence II : Meet the New Boss … Women Rule!
“ AS LEADERS, WOMEN RULE : New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report/ BusinessWeek
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 .”
Yes!!!!!!!!!!!!!!!!! “free to do his or her absolute best” … “allow its members to discover their greatness.”
“ Reward excellent failures . Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack)