re-imagine’s requisites : the leadership 11 tom peters/04.01.2004
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Re-imagine’s Requisites : The Leadership 11 Tom Peters/04.01.2004. Slides at … tompeters.com. - PowerPoint PPT PresentationTRANSCRIPT
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Re-imagine’s Requisites:
The Leadership11
Tom Peters/04.01.2004
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Slides at …
tompeters.com
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“Uncertainty is the only thing to be sure of.” —Anthony Muh,
head of investment in Asia, Citigroup Asset Management
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief of Staff,
U. S. Army
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It is the foremost task—and responsibility—of our generation to
re-imagine our enterprises, private
and public. —from the Foreword, Re-imagine
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Context: The Change Tsunami
Jobs Technology
Globalization War, Warfighting & Security
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Jobs New Technology
Globalization War, Warfighting &
Security
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The Perfect (Jobs) Storm
Off-shoringWC Automation
Reluctance to hire
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“In a global economy, the government cannot give
anybody a guaranteed success story, but you can give people the tools to make the most of
their own lives.” —WJC, from Philip Bobbitt,
The Shield of Achilles: War, Peace, and the Course of History
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“14 MILLION service jobs are in
danger of being shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
study
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“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04
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“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
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“The proper role of a healthily functioning economy is to destroy
jobs and to put labor to use elsewhere. Despite this truth, layoffs and firings will always
sting, as if the invisible hand of free enterprise has slapped
workers in the face.” —Joseph Schumpeter
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“There is no job that is America’s God-given right
anymore.” —Carly Fiorina/ HP/
01.08.2004
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“WHAT ARE PEOPLE GOING TO DO WITH
THEMSELVES?” —Headline/
Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity
rather than anxiety.”)
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“We erect walls to foreign trade and even discourage job-displacing innovations. But time and again
through our history, we have discovered merely to preserve the
comfortable features of the present, rather than reaching for new levels of
prosperity, is a sure path to stagnation.” —Alan Greenspan/03.12.2004
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Jobs Technology
Globalization War, Warfighting &
Security
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<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift
1800s: > prior 900 years1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century: 1000X tech
change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it
represents a rupture in the fabric of human history”)
Ray Kurzweil
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E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
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“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
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“I genuinely believe we are living through the greatest intellectual moment in history.”
Matt Ridley, Genome
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“In 25 years, you’ll probably be able to get the
sum total of all human knowledge on a personal
device.”Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T] [Barron’s 11.13.2000]
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“A California biotechnology company has put the entire
sequence of the human genome on a single chip, allowing
researchers to conduct a single experiment on the complex
relationships between the 30,000 genes that make up a human being.” —Page 3, Financial Times/10.03.2003
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Jobs Technology
Globalization War, Warfighting &
Security
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“Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it
will bring the two centuries of global domination by Europe and,
subsequently, its giant North American offshoot to an end.”
—Financial Times (09.22.2003)
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“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
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China Roars!
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1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of
Total Global Growth in 2002.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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1998-2003: 45,000,000 layoffs in state sector; offset by $450B in
foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico,
15% in Korea.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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50% of output from private firms, 37% from state-owned
firms; 80% of workforce (incl. rural) now in private
employ.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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Population growth = 1%; two-thirds of housing
privately owned, 90% of urban Chinese own a home
(vs. 61% in Japan)
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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200 cities with >1,000,000 population.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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2003: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%:
DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs,
PDAs, car stereos).Source: “China Takes Off”, David Hale & Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
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“Going Global: Flush with billions in foreign reserves,
China is embarking on a buying spree” —Cover/ Newsweek/ 03.01.04/ on
China’s aggressive offshore acquisition activity (buying brands,
technology, etc.)
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World economic output: U.S.A., 21%; EU, 16%; China, 13%
(2X since1991)
Source: New York Times/12.14.2003
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“America, like everyone else, must get used to being a loser as well as a gainer in the global economy. In the end, the
21st century is unlikely to be the American Century.” —“When the Chinese Consumer Is King”/New
York Times/12.14.2003. “The notion that God intended Americans to be permanently
wealthier than the rest of the world, that gets less and less likely as time
goes on.” —Robert Solow, Nobel laureate in economics/New York Times/12.14.2003
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In Store: International Equality, Intranational Inequality
“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great
rewards for merit and great individual autonomy. This will leave individuals far more responsible for
themselves than they have been accustomed to being during the industrial period. It will also reduce the
unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies
throughout the 20th century.”
James Davidson & William Rees-Mogg,The Sovereign Individual
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Indian GDP/1990-2002: Ag, 34% to 21%; services,
40% to 56%
Source: The Economist/02.04
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Level 5 (top) ranking/Carnegie Mellon
Software Engineering Institute: 35 of 70
companies in world are from India
Source: Wired/02.04
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“Forget India, Let’s Go to Bulgaria” —Headline,
BW/03.04, re SAP, BMW, Siemens et al. “near-shoring”
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Jobs Technology
Globalization
War, Warfighting & Security
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“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
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“The world’s new dimension (computers, Internet, globalization,
instantaneous communication, widely available instruments of mass
destruction and so on) amounts to a new metaphysics that, by empowering
individual zealots or agitated tribes with unappeasable grievances, makes the world unstable and dangerous in
radically new ways.” —Lance Morrow/Evil
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“The new century risks being overrun by both anarchy and technology. The two great destroyers of history may reinforce each other. Both the spread of terrorism and that of weapons of mass destruction point to a world in which
Western governments are losing control. The spread of the technology of mass destruction represents a potentially massive redistribution of power
away from the advanced industrial (and democratic) states and toward smaller states that may be less stable and have less of a stake in an orderly world; or more dramatically still, it may represent a redistribution of power
away from the state itself and towards individuals, that is to say terrorists or criminals. In the past to be damaging, an ideological movement had to be
widespread to recruit enough support to take on authority. Henceforth, comparatively small groups will be able to do the sort of damage which
before only state armies or major revolutionary movements could achieve. A few fanatics with a ‘dirty bomb’ or biological weapons will be able to cause
death on a scale not previously envisaged. … Emancipation, diversity, global communication—all of the things that promise an age of riches and creativity—could also bring a nightmare in which states lose control of the means of
violence and people lose control of their futures.”—Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century
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“Before we can talk about the security requirements for today
and tomorrow, we have to forget the security rules of yesterday.” —Robert Cooper, The
Breaking of Nations: Order and Chaos in the Twenty-first Century
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All Bets Are Off!
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“There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of
change will only accelerate.”Steve Case
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“Let’s compete—by training the best workers, investing in R & D,
erecting the best infrastructure and building an education system that graduates students who rank with the worlds best. Our goal is to be competitive with the best so we
both win and create jobs.” —Craig Barrett (Time/03.01.04)
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The “Ownership Society” (GWB): “This is a bundle of proposals that treat
workers as self-reliant pioneers who rise through several employers and
careers. To thrive, these pioneers need survival tools. They need to own their own capital reserves, their retraining
programs, their own pensions and their own health insurance.” —David
Brooks/NYT/12.20.03
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Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.
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The
Leadership11
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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Steel: 75,000,000 tons in ’82 to 102,000,000 tons in ’02. 289,000 steelworkers
in ’82 to 74,000 steelworkers in ’02.
Source: Fortune/11.24.03
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“WHERE IS YOUR JOB GOING”: writing software, designing chips,
reading MRIs, processing mortgages, preparing tax returns, managing
computer networks (etc: GE Capital’s 15,000 in Delhi), preparing PP slides
for McKinsey (350 in Chennai), equity analysis of U.S. companies (Morgan
Stanley) …Source: Fortune/11.24.03
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“WHAT ARE PEOPLE GOING TO DO WITH
THEMSELVES?” —Headline
/Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with
serenity rather than anxiety.”)
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“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
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The Leadership11
Talent Management
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In an age of value-added through imagination, creativity and
intellectual capital … the leader’s Job One is the recruitment,
development and retention of awesome talent.
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Brand = Talent.
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“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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Age of AgricultureIndustrial Age
Age of Information IntensificationAge of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
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“The Creative Class derives its identity from its members’ roles as
purveyors of creativity. Because creativity is the driving force of economic growth, in terms of
influence the Creative Class has become the dominant class in
society.” —Richard Florida, The Rise of the Creative Class (38M, 30%)
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“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
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PARC’s Bob Taylor:
“Connoisseur of Talent”
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Talent!
Tina Brown: “The first thing to do is to hire enough
talent that a critical mass of excitement starts to
grow.”Source: Business2.0/12.2002-01.2003
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T.A.: 3
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Model 25/8/53
Sports Franchise GM
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“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division
for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent
Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.” —Ed
Michaels
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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
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“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)
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DD$21M
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“Where do good new ideas come from? That’s simple! From
differences. Creativity comes from unlikely juxtapositions.
The best way to maximize differences is to mix ages, cultures and
disciplines.”
Nicholas Negroponte
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“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
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“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, BusinessWeek, 11.20.00
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Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret: Women Managers
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“Are men obsolete?” —Headline,
USN&WR/06.03.03
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What’s your company’s …
EVP?Employee Value Proposition, per Ed
Michaels et al., The War for Talent;
IBP/Internal Brand Promise per TP
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EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
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Our Mission
To develop and manage talent;to apply that talent,
throughout the world, for the benefit of clients;to do so in partnership;
to do so with profit.
WPP
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Talent’s “Big Two” Rules
GREAT Finance Dept. = GREAT Football Team
DIFFERENCES Among Cello Players = DIFFERENCES
Among Hotel GMs
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The Top 5 “Revelations”
Better talent wins.
Talent management is my job as leader.
Talented leaders are looking for the moon and stars.
Over-deliver on people’s dreams – they are volunteers.
Pump talent in at all levels, from all conceivable sources, all the time.
Source: Ed Michaels et al., The War for Talent
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Talent’s Rules
1. Talent = 25/8/53 2. Some people are better than other people. Some people are a helluva lot better than other people3. Think “Roster”4. Think “V.C.”5. Talent = Brand6. Talent is what leaders do.
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Talent Department
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People Department
Center for Talent Excellence
Seriously Cool People Who Recruit & Develop Seriously Cool People
Etc.
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“Firms will not ‘manage the careers’ of their employees. They
will provide opportunities to enable the employee to develop
identity and adaptability and
thus be in charge of his or her own career.”
Tim Hall et al., “The New Protean Career Contract”
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Quests!
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“Ninety percent of what we call ‘management’ consists of making it
difficult for people to get things done.” – P.D.
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“I don’t know.”
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Distinct …or Extinct
“If there is nothing very special about your work, no matter how hard you apply yourself,
you won’t get noticed, and that increasingly means you won’t get
paid much either.”Michael Goldhaber, Wired
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“better material welfare” vs. “maximize the opportunity of its
people” —Philip Bobbitt, The Shield of Achilles:
War, Peace, and the Course of History
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“In a global economy, the government cannot give
anybody a guaranteed success story, but you can give people the tools to make the most of
their own lives.” —WJC, from Philip Bobbitt,
The Shield of Achilles: War, Peace, and the Course of History
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Country Guarantee No One Is in Need Provide Freedom to Pursue Goals
U.S.A. 35% 58%Germany 58% 38%France 61% 36%UK 61% 35%Italy 65% 22%
Source: Economist/11.08.2003
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“My ancestors were printers in Amsterdam from 1510 or so until
1750, and during that entire time they didn’t have to learn anything
new.”Peter Drucker, Business 2.0 (08.22.00)
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“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
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26.3
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Prep: 1 hour per 1 minute (WSC) “Forget ‘practice makes perfect.’
Substitute ‘perfect practice makes perfect.’ ” (TT) “Major difference between ‘best’ and ‘average’?
‘Best’ get as much pleasure from practice as performance.” —Ben Zander
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Edward Jones’ Training Machine*
146 hours/employee/yearNew hires: 4X avg.
3.8% of payroll
* #1, “The 100 Best Companies To Work For”/Fortune/01.2003
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T.T.D./Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the Yellow Pages
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“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
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“For Marx, the path to social betterment was through collective resistance of the proletariat to the economic injustices of the capitalist system
that produced such misshapenness and fragmentation. For Emerson, the key was to jolt individuals into realizing the untapped power of energy, knowledge, and creativity of which all
people, at least in principle, are capable. He too hated all systems of human oppression; but his central project, and the basis of his legacy, was to unchain individual minds.” —Lawrence Buell, Emerson
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I AM A TALENT FANATIC. I STACK UP WITH THE BEST FOOTBALL COACHES. OUR TALENT IS ON
QUESTS TO RE-IMAGINE TOMORROW. THE TALENT I
RECRUIT AND DEVELOP IS MY
PREMIER LEGACY. (Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Metabolic Management
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The “metabolism” of enterprise-competition-invention has speeded
up remarkably. It is the leader’s mission to increase—and manage—the Metabolic Rate of her or his
organization.
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“How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation,
discovery and competition? Do we value stability and control or evolution and learning? Do we think that
progress requires a central blueprint, or do we see it as a decentralized, evolutionary process?? Do we see mistakes as permanent disasters, or the correctable
byproducts of experimentation? Do we crave predictability or relish surprise? These two poles,
stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel,
The Future and Its Enemies
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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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“I’m not comfortable unless
I’m uncomfortable.”—Jay Chiat
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“We are in a
brawl with no rules.”
Paul Allaire
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S.A.V.
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“Strategy meetings held once
or twice a year” to “Strategy meetings needed several
times a week.”
Source: New York Times on Meg Whitman/eBay
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Rate of Leaving F500
1970-1990: 4XSource: The Company, John Micklethwait & Adrian
Wooldridge (1974-200: One-half biggest 100 disappear)
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“Far from being a source of comfort,
bigness became a code for inflexibility.” —John
Micklethwait & Adrian Wooldridge, The Company
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“Active mutators in placid times tend to die off. They
are selected against. Reluctant mutators in
quickly changing times are also selected against.”
Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors
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“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
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The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
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“We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher
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“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through version after version, until they get
something good enough. Then they leverage the power they’ve gained in
other markets to enforce their standard.”Seth Godin, Zooming
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Culture of Prototyping
“Effective prototyping may be
the most valuable core competence an innovative organization can
hope to have.”
Michael Schrage
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Think about It!?
Innovation = Reaction to the Prototype
Michael Schrage
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“If it works, it’s
obsolete.”
—Marshall McLuhan
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Boyd
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OODA Loop/Boyd Cycle“Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST
SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the
fight” (NEVER HEAD TO HEAD)
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
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“Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation
of opportunity.”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
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“Float like a butterfly.
Sting like a bee.” —Ali
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“Maneuverists”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
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Eric’s Army
Flat.Fast.Agile.Adaptable.Light … But Lethal.Talent/ “I Am an Army of One.”Info-intense.Network-centric.
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The New Infantry Battalion/New York Times/12.01.2002
“Pentagon’s Urgent Search for Speed.” 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. “Every soldier is a
sensor.” “Revolutionary capabilities.” Find-to-hit: 45 minutes to 15 minutes
… in just one year.
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“Rather than have massive armies that people can go along and
inspect, it is now about having rapidly deployable expediency forces that can be dropped by
land, sea or air and with full support.” —MoD official, on Defense Secretary Geoff
Hoon’s defense white paper (12.2003)
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WE ARE ON A PERMANENT HIGH. WE LIVE ON SPEED. WE TACK
AND JIBE ON A NANOSECOND’S NOTICE. RECRIMINATION IS
MINIMAL. ACTION RULES. I AM PROACTIVE AROUND THE CAUSE
OF URGENCY. (Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Technology Management
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The Internet and other associated technologies are changing …
everything. The leader must take direct charge of the full-bore implementation of the new
technologies. The wise leader is his own CIO.
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“E-commerce is happening the way all the hype said it would. Internet
deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it
is very, very early. We can’t even glimpse IT’s potential in changing the way people work and live.” —Andy Grove
(BusinessWeek/August 2003)
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100 square feet
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“Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is
in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s
pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the
network. They can review a chart from 100 miles away.” —David Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)
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“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly
together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business
2.0/ OCT2002
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“The mechanical speed of combat vehicles has not
increased since Rommel’s day, so the difference is all in the
operational speed, faster communications and faster
decisions.” —Edward Luttwak, on the unprecedented pace of the move toward Baghdad
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Eric’s Army
Flat.Fast.Agile.Adaptable.Light … But Lethal.Talent/ “I Am an Army of One.”Info-intense.Network-centric.
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“Hyperlinks subvert hierarchy!”
The Cluetrain Manifesto
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Words to Live By …
“Hierarchy is an organization with its face
toward the CEO and it’s ass toward the customer.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
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WebWorld = Everything
Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
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“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
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I’net …
… allows you to dream dreams
you could never have dreamed
before!
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Case: CRM
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Amen!
“The Age of the
Never Satisfied Customer”
Regis McKenna
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“CRM has, almost universally, failed
to live up to expectations.”
Butler Group (UK)
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No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre-
electronic age when service was more personal.”
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CGE&Y (Paul Cole): “Pleasant
Transaction” vs. “Systemic Opportunity.” “Better job
of what we do today” vs. “Re-think overall
enterprise strategy.”
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Here We Go Again: Except It’s Real This Time!
Bank online: 24.3M (10.2002); 2X Y2000.
Wells Fargo: 1/3rd; 3.3M; 50% lower
attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and stay
with the bank much longer.”
Source: The Wall Street Journal/10.21.2002
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TECHNOLOGY CHANGES EVERYTHING. I AM A TRUE
BELIEVER. NOW IS THE MOMENT FOR INSANELY BOLD
INVESTMENT AND TOTAL CORPORATE RE-IMAGINATION.
(Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Barrier Management
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The “corporate metabolism” cannot be speeded up and the new
technologies cannot be fully exploited unless all barriers to X-functional
communication (throughout the entire supply and demand chain) are
destroyed. The leader must lead—get directly involved in the minutiae of
this STRATEGIC task.
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“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …
“Al-Qaeda represents a new and profoundly dangerous kind of
organization—one that might be called a ‘virtual state.’ On September 11 a virtual
state proved that modern societies are vulnerable as never before.”—Time/09.09.2002
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“The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald
Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are
free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. …
“ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways
to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy
and slow.’ ”—The New York Times/09.04.2002
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From: Weapon v. Weapon
To: Org structure v. Org structure
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“Our military structure today is essentially one
developed and designed by Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
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“The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
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“In an era when terrorists use satellite
phones and encrypted email, US gatekeepers stand armed against them with pencils
and paperwork, and archaic computer systems that don’t
talk to each other.”Boston Globe (09.30.2001)
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“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly
together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business
2.0/ OCT2002
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Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
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Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
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“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
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“The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and
financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0
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BARRIERS MUST GO. PERIOD. I AM INTIMATELY INVOLVED WITH THE GRUBBY DETAILS OF TOTAL PROCESS RE-DESIGN. WE WILL
NOT PARTNER WITH THOSE THAT
DON’T “GET IT.” (Scale of 1 t0 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Forgetful Management
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The new competitive realities demand that we turn our backs on
the ones who brung us. Every leader needs a FORMAL
“forgetting strategy.”
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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
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“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
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Cortez!
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Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
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“It’s just a fact: Survivors underperform.”
—Dick Foster
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Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
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Success Kills!
“The more successful a company, the flatter its
forgetting curve.” — Gary Hamel and C.K. Prahalad
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“FORGET IT” IS MY MISSION AND MANTRA. WE MUST SEVER
MANY/MOST OF OUR TIES TO THE PAST … AND IMAGINE
COMPLETELY NEW WORLDS. EVERYONE KNOWS THAT
“FORGETTING” IS MY PASSION.
(Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Metaphysical Management
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A brand new value proposition is emerging. We are moving toward
more and more ethereal “products” and “services.” The
leader must oversee this process—become the Metaphysician-in-
Chief.
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“While everything may
be better, it is also increasingly the same.”
Paul Goldberger on retail, “The Sameness of Things,” The New York Times
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“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
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“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, Unique Now ... or Never
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“We make over three new product announcements a
day. Can you remember
them? Our customers can’t!”Carly Fiorina
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
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“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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Gerstner’s IBM: Systems Integrator of
choice. Global Services:
$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
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“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
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E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
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Leased AC: Units of “Coolth”
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Omnicom: 57% (of
$6B) from marketing services
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And the Winners Are …
Televisions –12%Cable TV service +5%
Toys -10%Child care +5%
Photo equipment -7%Photographer’s fees +3%
Sports Equipment -2%Admission to sporting event +3%
New car -2%Car repair +3%
Dishes & flatware -1%Eating out +2%
Gardening supplies -0.1%Gardening services +2%
Source: WSJ/05.16.03
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IBM/Q3/10.15.03/Rev: +5%
Services/Consulting: +11%Software: +5%Hardware: -5%
PCs: -2%Technology/Chips: -33%
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Turnkey Nation
HP … Sun … Farmers Group … Northwestern Mutual Financial Network …
IBM … AT&T … Ericsson … GE Power Systems … GE Industrial Systems … Ford … Siemens … Home Depot …
Deere … UTC Otis … UTC Carrier … UPS … Springs Industries … RCI …
Equity Office Properties … Omnicom … India … Etc.
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“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
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“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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“Guinness as a brand is all about community.
It’s about bringing people together and sharing
stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
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“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
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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
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WHAT CAN BROWN DO FOR YOU?
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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Bob Lutz: “I see us as being in the art business. Art,
entertainment and mobile sculpture, which,
coincidentally, also happens to provide transportation.”
Source: NYT 10.19.01
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“Lexus sells its cars as containers for our
sound systems. It’s marvelous.”—Sidney Harman/
Harman International
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It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”; $750-$1,000 for flood-control
piping … so that beavers can stay.
Source: WSJ/05.21.2002
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Moving Companies
WSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and
wine. An outfit in New York promises quick high-speed Internet
hookup. And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui
expert figure out the right spot. …”
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Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of
undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” …
consumer: “They are our little mechanical buddies. They have personality. When they are
running efficiently, our lives are running efficiently. They are part of my family.” …
“machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry
room” (complements Sub-Zero refrigerator and home-theater center)
Source: New York Times Magazine/01.11.2004
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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
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“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
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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
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(Revised) Experience Ladder
Dreams Come True Awesome Experiences
SolutionsServicesGoods
Raw Materials
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And Tomorrow …
“Fifteen years ago companies competed on price. Now it’s
quality. Tomorrow it’s design.”
Robert Hayes
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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
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“Design is treated like a religion at
BMW.”Fortune
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“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
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“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
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“A shipping clerk earning $25,000 a year treats herself to silk pajamas at Victoria’s Secret. A dual-income couple earning
$125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable
generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. Consumers today are willing to pay a significant premium for goods and services that are emotionally important to them and that deliver the perceived values of quality, performance and engagement.
But in other categories that aren’t emotionally important, they become bargain hunters: a passionate Mercedes driver will shop at Target every weekend; a construction worker who
splurges on a $3,000 set of Callaway golf clubs will buy store brand groceries.” —Trading Up: The New American Luxury/Michael
Silverstein & Neil Fiske
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“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.]
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15 “Leading” Biz Schools
Design/Core: 0Design/Elective: 1Creativity/Core: 0
Creativity/Elective: 4Innovation/Core: 0
Innovation/Elective: 6
Source: DMI/Summer 2002
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New Market Realities
Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-Buitoni
The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your
Business, Rolf Jensen
Trading Up: The New American Luxury, Michael Silverstein & Neil Fiske
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I FULLY COMPREHEND THAT THE “BASIC VALUE PREMISE” IS
SHIFTING … DRAMATICALLY AND RAPIDLY. I AM WHOLLY
COMMITTED TO BECOMING “MASTER METAPHYSICIAN.”
(Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Opportunity Management
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The two biggest (by far) “trends” are ignored—or at least not treated as Strategic Priority One—by most.
Women! Boomers & Geezers! Why? (And … what does the leader
plan to do about it?)
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Women & the Marketspace.
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?????????
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%
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$5+T > Japan
10M/28M/$3.6T > Germany
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Yeow!
1970 … 1%
2002 … 50%
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91% women: ADVERTISERS DON’T
UNDERSTAND US. (58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)
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Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
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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.”
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“Men seem like loose cannons. Men always move faster through a store’s
aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants,
pick something up, and then, almost abruptly he’s ready to buy. For a
man, ignoring the price tag is almost a sign of virility.”
Paco Underhill, Why We Buy* (*Buy this book!)
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Women's View of Male Salespeople
Technically knowledgeable; assertive; get to the point; pushy;
condescending; insensitive to women’s needs.
Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)
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Read This: Barbara & Allan Pease’s
Why Men Don’t Listen & Women Can’t Read Maps
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“It is obvious to a woman when another woman is upset, while a man generally has to physically witness
tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned
sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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“Resting” State: 30%, 90%: “A woman knows her children’s
friends, hopes, dreams, romances, secret fears, what they are
thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes
to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,
but can never find things in fridges, cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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“Female hearing advantage contributes significantly to what is
called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.
They are excellent at imitating animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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Senses
Vision: Men, focused; Women, peripheral.
Hearing: Women’s discomfort level I/2 men’s.
Smell: Women >> Men.Touch: Most sensitive man <
Least sensitive women.
Source: Martha Barletta, Marketing to Women
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“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or
fixes a leaking tap.”Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps
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“Women are more comfortable talking or
thinking about people and relationships, while men
prefer to contemplate things.” —research reported in the New York
Times (08.10.2003)
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Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that cohere.*
*Redwood (UK)
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Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
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EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
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“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
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“Women don’t buy
brands. They join them.”
EVEolution
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2.6 vs. 21
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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.
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Psssst! Wanna see my “porn” collection?
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Boomers & Geezers.
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Subject: Marketers & Stupidity
“It’s 18-44, stupid!”
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Subject: Marketers & Stupidity
Or is it: “18-44 is stupid,
stupid!”
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
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44-65: “New Consumer Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
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“The New Consumer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
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“Baby-boomer Women: The Sweetest of
Sweet Spots for Marketers” —David Wolfe and
Robert Snyder, Ageless Marketing
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Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
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“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
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“Sixty Is the New Thirty”
—Cover/AARP/11.03
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50+
$7T wealth (70%)/$2T annual income50% all discretionary spending
79% own homes/40M credit card users41% new cars/48% luxury cars
$610B healthcare spending/74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old
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“Marketers attempts at reaching those over 50 have
been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter
Francese, founding publisher, American Demographics
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“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
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No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
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“BofA Is Betting Its Future on the Hispanic Market” *
“We expect to get no less than
80 % of our future growth in
retail banking from the Hispanic market.” —Ken Lewis, CEO, BofA
*Fortune/04.2003
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I GET IT! WOMEN! BOOMERS & GEEZERS! IT’S WHERE THE LOOT IS! WE ARE “GOING STRATEGIC”
ON THIS! (Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Portfolio Management
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We must think of the “rosters” of talent, customers, suppliers, leader,
projects, initiatives—and the Board—in terms of portfolios. I.e.: Is our
portfolio as strange as these strange times demand? The leader is a “V.C.”
(venture capitalist) creating and managing several strategically vital
portfolios.
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“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms
listened to their customers, invested aggressively in technologies that would provide their customers more
and better products of the sort they wanted, and because they carefully studied market trends and
systematically allocated investment capital to innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
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THINK WEIRD: The High Standard
Deviation Enterprise.
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Saviors-in-Waiting
Disgruntled CustomersOff-the-Scope Competitors
Rogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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CUSTOMERS: “Future-defining customers may
account for only 2% to 3% of your total, but they represent a crucial
window on the future.”Adrian Slywotzky, Mercer Consultants
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COMPETITORS: “The best swordsman in the world doesn’t need to fear
the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a
sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t
prepared for him; he does the thing he ought not to do and often it catches the expert out and
ends him on the spot.”
Mark Twain
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“To grow, companies need to break out of a vicious
cycle of competitive benchmarking, imitation and pursuit.” —W. Chan Kim & Renee Mauborgne, “Think
for Yourself —Stop Copying a Rival,” Financial Times/08.11.03
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Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
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Audie Murphy was the most decorated soldier in WW2.
He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he
never won …
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… the Good Conduct medal.
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Herman Melville on JPJ: “intrepid, unprincipled,
reckless, predatory, with boundless ambition,
civilized in externals but a savage at heart.” —from Evan
Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy
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Suppliers: “There is an ominous downside to strategic supplier
relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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Boards: “Extremely contentious boards that regard dissent as an
obligation and that treat no subject as undiscussable” —Jeffrey
Sonnenfeld, Yale School of Management
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We become who we
hang out with!
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WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you
uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not
to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction.
(7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of
some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face.
(11) Forget the past, particularly your company’s success.
Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation
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Advice to Corporate Leaders: “Consider the metaphor of the windmill: You can harness raw
power but you can’t control it. … Hire artists, clowns, or other disrupters to come in and
challenge your corporate environment. … Hire a corporate anthropologist to analyze how tolerant
your organization is of deviants and other
innovators. … Once the anthropologist leaves, hire a shaman to drive out the
evil spirits of conformity. …”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
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Deviants, Inc. “Deviance tells the story of every mass
market ever created. What starts out weird and dangerous
becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way
out there.”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
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“ ‘Giant’ projects contain within them the almost certain seeds of mediocrity. The very fact of their size causes constant
scrutiny and thence ‘political’ interference. Such ‘oversight’ drains the passion of the
champions and risks—to the point of certainty—fatal ‘dumbing down’ and
thence loss of the very distinction and quirkiness sought in the first place.”—
Exec, Hollywood
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Big Idea/s
V.C. PortfolioRoster
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I AM A “V.C.” I OBSESS ABOUT MY VARIOUS “ROSTERS”—EMPLOYEES, CUSTOMERS, ETCETERA. I MEASURE MY
ROSTERS’ “WEIRDNESS
QUOTIENT.” (Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Failure Management
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Screwing up is more important than ever in strange times. The
screw-up rate is the best indicator of sufficiently rapid adaptation. The leader must “manage” the
screw-up process—literally.
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“Wealth in this new regime flows directly from innovation, not
optimization. That is, wealth is not gained by perfecting the known,
but by imperfectly seizing the unknown.”
Kevin Kelly, New Rules for the New Economy
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The [New] Ge Way
DYB.com
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“Perfection is achieved only by
institutions on the point of
collapse.” — C. Northcote Parkinson
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“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
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RM: “A lot of companies in the Valley fail.”
RN: “Maybe not enough fail.”
RM: “What do you mean by that?”
RN: “Whenever you fail, it means you’re trying new things.”
Source: Fast Company
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“The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.” —Newsweek/ Paul Saffo (03.02)
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Silicon Valley Success [Failure?] Secrets
“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money;
6 do okay; 3 do well; 1 hits the jackpot
Source: The Economist
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Excellence = 1 in 20
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“... natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event
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DG to TP: “Sam is not afraid
to fail.” **NASA failing #1, from the shuttle disaster report (July 2003):
“fear of retribution by lower-level employees.”
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“Fail faster. Succeed sooner.”
David Kelley/IDEO
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Fail. Forward. Fast. –High-tech Exec
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“No matter. Try again. Fail again. Fail
better.” —Samuel Beckett
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“Success is the ability to go from failure to
failure without losing your enthusiasm.” —Winston
Churchill
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“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
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WE DO NO “WITCH HUNTS”! WE FULLY UNDERSTAND THAT
WE ARE AS GOOD AS OUR “EXCELLENT FAILURES.” WE
CHERISH THE BOLD AND
BLOODIED ONES. (Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Cause Management
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People “sign up” for causes worth pursuing. Turning the enterprise into a cause-worth-committing-to
is a primary task of the leader.
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
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CEO Assignment2002 (Bermuda):
“Please leap forward to 2007, 2012, or 2022, and write a business history of
Bermuda. What will have been said about your company during your
tenure?”
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Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and
imagine me immediately doing something about what you’ve just said. What would it be?”
“Do you feel you have an obligation to ‘Make the world a
better place’?”
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“Management has a lot to do with answers. Leadership is a function of questions. And the
first question for a leader always is: ‘Who do we
intend to be?’ Not ‘What are we going to do?’ but ‘Who do
we intend to be?’” —Max DePree, Herman Miller
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Demo = Story
“A key – perhaps the key – to leadership is the
effective communication of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
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Good to Great: Fannie Mae … Kroger … Walgreens … Philip
Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo
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AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers
US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3M …
Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle …
Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express
… Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN …
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Huh?
“Quiet, workmanlike, stoic leaders bring about the big
transformations.”--JC
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Huh?
“Humility: The Surprise Factor in Leadership … bosses with Gung-
ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/
re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)
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Pastels?
T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U. S. Grant/W. T. Sherman
TR/FDR/LBJ/RR/JFKM.L. King
C. de GaulleM. Gandhi
W. ChurchillM. Thatcher
PicassoMozart
Copernicus/Newton/EinsteinJ. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/
S. McNealyA. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison
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“rough … sarcastic …
bullying”
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WE WILL SUCCEED TO THE EXTENT THAT OUR TEAM
“CAN’T WAIT FOR THE WEEKEND TO END.” WE AIM TO
DENT THE UNIVERSE! (Scale of 1 t0 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management
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The Leadership11
Passion Management
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Passion moves mountains. Creating a “passionate enterprise” is a modern leadership imperative.
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“A leader is a dealer in hope.”
Napoleon
(+TP’s writing room pics)
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Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
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Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
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BZ: “I am a … Dispenser of Enthusiasm!”
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“You can’t behave in a calm, rational manner.
You’ve got to be out there on the lunatic fringe.” — Jack
Welch, on GE’s quality program
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,
Engagement, Commitment, Great Causes & Determination to Make a
Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
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“I didn’t have a ‘mission statement’ at Burger King. I had a dream. Very
simple. It was something like, ‘Burger King is 250,000 people, every one of
whom gives a shit.’ Every one. Accounting. Systems. Not just the drive through. Everyone is ‘in the brand.’ That’s what we’re talking
about, nothing less.”— Barry Gibbons
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T. J. Peters T. J. Peters 1942 – 2---1942 – 2---
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T HIS BOSS WOULDN’T
LET HIM! LET HIM!
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T. J. Peters T. J. Peters 1942 – 2---1942 – 2---
HE WAS A PLAYER!HE WAS A PLAYER!
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“If you ask me what I have come to do in this
world, I who am an artist, I will reply: I am here to live my life out
loud.” — Émile Zola
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“May you live all the days of
your life.” — Jonathan Swift
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The Re-imagineer’s Credo … or, Pity the Poor Brown*
Technicolor Times demand …Technicolor Leaders and Boards who recruit …
Technicolor People who are sent on …Technicolor Quests to execute …
Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …
Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …
Technicolor Times.
*WSC
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Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.
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Kevin Roberts’ Credo
1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.10. Avoid moderation!
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Sir Richard’s Rules:
Follow your passions.Keep it simple.
Get the best people to help you.Re-create yourself.
Play.
Source: Fortune/10.03
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“In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your
nose.” —Fast Company /October2003
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I AM AN … ENTHUSIAST. MY ENTHUSIAM IS CONTAGIOUS. WE
HAVE FUN. WE AIM TO GO ON “QUESTS” AND CHANGE THE
WORLD. THAT IS MY COMMITMENT. THAT IS MY
LEGACY. THAT IS MY (LOUD)
LIFE. (Scale of 1 to 10?)
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The Leadership11
1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management