distinct or … extinct tom peters seminar2000 cedia indianapolis 9 september 2000
TRANSCRIPT
Distinct or … ExtinctTom Peters Seminar2000
CEDIAIndianapolis
9 September 2000
NAPM (April 2000): “You are the Rock Stars
of the B2B Age!”
CEDIA Members:
THIS IS YOUR MOMENT!
“Electronic Lifestyles
Industry” = THE WORLD
Summer 2000 …
KOA wires up!
N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.
Auto-dimming
Map lights
Emergency assistance
Cell phones, Voice mail, email, Internet access
Levi’s and Philips
Stephano Marzano (Philips Design), Levi Strauss, Italian
designer Massimo Ossi: jacket with cell phone and MP3 player
built into pockets!
Source: Red Herring (09.00)
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Cisco, Dell =
Brand-owning companies
who sell Customer Satisfaction
Source: David Schneider & Grady Means, MetaCapitalism
Brand Inside
Brand Talent: The Great War for Talent
There is no “talent shortage” …
if …
you are a GPTW*
*Great Place To Work
Obsession! Greatness!
Performance!Pay!
Women!Weird!
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
“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
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH
INITIATIVEE.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
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 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 (05.17.00)
4. Pay
Fork Over!
“Technically savvy and innovative people have become unbelievably
expensive.”
Peter Drucker, Business 2.0/08.2000 [Drucker adds that there’s no reason for
them to be on anyone’s payroll.]
“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)
5. Women
Born to Lead!
Women and new-economy
management …
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s Stuff = New Economy Match
Improv skillsRelationship-centric
Less “rank consciousness”Self determinedTrust sensitive
IntuitiveNatural “empowerment freaks” [less
threatened by strong people]Intrinsic [motivation] > Extrinsic
“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
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
6. Weird
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
Mantra2000
Talent = Brand
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“The ‘surplus society’ has a surplus of similar companies, employing similar
people, with similar educational backgrounds, working in similar jobs,
coming up with similar ideas, producing similar things, with similar
prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
OVERVIEW
Tomorrow Today: Cisco!
87% of $20B*(Cisco Connection ONLINE)
Save $500M(service and tech support)
* = $48,000,000 … per DAY
COMMUNITY!/ COMMUNITY SERVICES!
B2C Success
“Genuine brand strength”
“Build community”Source: Geoffrey Moore
Tomorrow Today: Cisco!
87% of $20B(Cisco Connection ONLINE)
Save $500M(service and tech support)
C.Sat e >> C.Sat HCustomer Engineer
Chat Rooms/Collaborative Design ($1B “free” consulting)
CUSTOMER PERSPECTIVE:
D.I.Y./ CONTROL
Welcome to
D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as
a business go down and
perceived service goes up because customers are conducting it
themselves.” Ray Lane, Oracle
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
I’net Freedom Manifesto
I AM IN CHARGE HERE! I CAN DO WHATEVER
I NEED OR WANT TO DO WHENEVER I WANT
TO DO IT!
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
“The Web enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Brand Outside
Strategy 2: Fighting Back via
Systems Integration!
THE CASE
B2B
1999 – 2004: 50X
2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)
T
GM/Ford/DaimlerChrysler (02-27)
Covisint$240B (+$500B)
I.P.O.
Solectron, IBM, Nortel, Matsushita, Seagate, Etc.
E2Open.com
$700B
Goal?
Drive profits to zero!*
*Remember AMR and “dynamic pricing.”
THE RESPONSE
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Systems Integrators” Unite [And Conquer]
Cisco’s winning strategy
[USAToday 07.11]: “Become the ‘Go-to’ Systems
Provider”
Defense-Offense: Systems Integration/HVA
Delphi, DanaUnited Technologies,
Corning, GE, Sun, Carpet One, Bud …
[Anybody in their right mind!]
E.g. …
GE: boxes [transformers, etc.] to “air traffic controllers of electrons”
UTC/Otis + Carrier: boxes to “integrated building systems”;
P&W, etc.: boxes to major aircraft subsystems
Service-Systems Paradox: Cut & Grow
Automate 75% of “commodity” service activities
and/but
Add value via people-intensive “strategic/systems-integration
activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)
Brand Outside
Strategy 3:
Design Matters!
Design as Soul
“We don’t have a good language to talk about this kind of thing. In most people’s
vocabularies, design means veneer. … But to me, nothing could be further from the
meaning of design. Design is the fundamental soul of a
man-made creation.”Steve Jobs
Design =
“There are three basic principles behind any well-
designed product: truth, humanity, and
simplicity.”Sohrab Vossoughi,
Ziba Design
Design =
SIMPLICITY … HONESTY … ACCESSIBILITY …
ENJOYMENTJonathan Ive (iMac)
“Sometimes I have episodes of wild fury in rental cars. It’s not road
rage. It’s more like design rage.”
Susan Casey, www.ecompany.com
Most Recent Entry/06.22.00
The “manual …
HP LaserJet 1100
Brand Outside
Strategy 4:
It’s the Experience!
“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
“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
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
“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
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
T.T.D.
WHAT’S THE [your] PLOT?
Notes Page
• WHAT IS YOUR STORY? [Be specific!] Message: This applies to every [Finance] project!
“This is the end of the pure product era. For instance, car
makers are beginning to understand that the car is a
platform for delivering services that drive the customer
experience.”Carly Fiorina, HP @ Comdex ’99
“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct.
Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a
rolling wireless portal on wheels, connecting you to your kitchen, your bank,
your kids, your office.”
Business 2.0, “Four Wheel Drive,” 08.22.00
??????????
THE HOME IS A [mere] PLATFORM FOR THE
SERVICES YOU SELL!*
*You are “the dog,” not the tail!
T.T.D.
Carefully examine/think through every aspect of “the experience of us.”*
*This holds for the Finance Dept. as well as the corporation’s “products”
Notes Page
• This demands a lot of care! THINK OF YOURSELF AS A DRAMATIST, A DIRECTOR. THINK ABOUT “THE WAY WE COME ACROSS.” Be … ridiculously … specific! [God is in the Details.]
ExperiencingOxymoron: Respect from an
Airline!
I can cope with delays. I cannot cope with lies … especially Sins
of Omission.
IT IS DISRESPECTFUL TO ME AS A HUMAN BEING!
5:47 “Amber light, back to you in a coupla minutes”
6:00 NO WORD YET6:08 “Be about ten minutes …
I know it’s hot in here …
it’s not our fault”GAP = 21 MINUTES
[All’s NOT well that “ends well”][21 minute “gap” SUCKS]
“Born without a brain” Award!
“Firestone Chief: I’m Sorry. He says that motorists are
partly to blame for the problems, though.”
Headline, front section, Des Moines Register, 09.07.2000
Brand Outside
Strategy 5:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 75%Etc.
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family
healthcare, finances, education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9/27.5/3.6T > Germany
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!
Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
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.”
Women and Healthcare
Women are … more dissatisfied, frustrated by the way they are treated
and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $
$$$ [and constitute 2/3 of health care employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.
Women do not want … an in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
Marketing to Women: Help Them Save Time!
80% … work86% … cook
58% … run errands with kids38% … take child to school
21% … go to the gym21% … take outside classes
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
Q: Why do guys like pagers?
A1: Sense of importance [Pager Dude]
A2: Cubicle Slaves’ replacement for “real guys” tool belts
Q: Why do women like pagers?
A: Get the news A.S.A.P. if her child is in the Nurse’s Office
Q: Why do women hate pagers?
A: They find nothing romantic about wearing a Stetson wrench or Stanley hammer attached to their waist! [Note
the pager’s clip-on device … guys ]
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 every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the
female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment. Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her intelligence and ability.”
EVEolution
[ It’s Simple …
Women are more thoughtful and more deliberate
than men!]
27 March 2000: email to TP from Shelley Rae Norbeck
“I make 1/3rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women
friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS
SEMINAR. [PLEASE: THINK ABOUT IT!]
Brand Outside
Strategy 6:
BRAND POWER!
Brand It! Now, More Than Ever!
“The increasing difficulty in differentiating between products and
the speed with which competitors take
up innovations will assist in the rise and rise of the brand.”
Gillian Law and Nick Grant, Management [New Zealand]
Who is going to be the Home Depot
/PricewaterhouseCoopers of the
Electronic Lifestyles Industry?
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander
Message
Your Moment! [if you “get it”]
Simplicity! [the box is not the thing]
Experience! [the box is not the thing]
Women! [the box is not the thing]