tom peters’ 2002 we are in a brawl with no rules! farmers /01.11.2002
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Tom Peters’ 2002 We Are In A Brawl With No Rules! Farmers /01.11.2002. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst. - PowerPoint PPT PresentationTRANSCRIPT
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Tom Peters’ 2002
We Are In A Brawl With No
Rules!Farmers/01.11.2002
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“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
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SWA > American +
Continental + Delta + Northwest + United + USAirways.
Source: Boston Globe (12.22.2001)
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Getting Beyond Lip Service!
“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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TP2002: GE Industrial Systems. Farmers. Message I: Same-same kills. Go way up the VA Chain. (Or
else.) Transformation or bust: Full-service/ solutions provider. Great
rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same
space. Mr. Darwin is on the prowl!)
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Diversity Marketing … Communities of Interest … Bank of America relationship … specialized
acquisitions … Farmers Agency Dashboard … HelpPoint …
licensed financial planners …
etc. … etc. … etc.
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A Brawl With No Rules.
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All Slides Available at …
tompeters.comNote: Lavender text in this file is a link.
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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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1 day 2001 = Year’s trade in 1949, year’s FEX in 1979, year’s
global calls in 1984.
Source: Charles Handy, The Elephant and the Flea
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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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TP/12.01: 7 Rules for Leading/THRIVING in a Recession+
1. It’s ALREADY too late.2. Show up & tell the truth—CREDIBILITY rules.3. Kill with KINDNESS.4. Sharp pencils are imperative—but don’t forget that the CUSTOMER & our TALENT & RISKY INVESTMENTS are still our long-term Bread & Butter.
5. Everything’s different, everything’s the same—it’s the NEW ECONOMY, more than ever, stupid!6. “Use” the trauma to mount the bold initiatives you should have long before mounted: Flux = OPPORTUNITY.7. We’re in a War of Organizational Models—from retail to the Pentagon. IDEAS MATTER MOST.
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New Org I: A White Collar Revolution.
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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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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IBM’s Project
eLiza!
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New Org II: IS/IT … “On the Bus” or “Off the Bus.”
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Cisco!
90% of $20B (=$50M/day)Annual savings in service
and support from customer self-management: $550M (P.S.: C.Sat e >> C.Sat h)
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Secret Cisco: Community!
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
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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
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Reuters (12.11.01): “Teens and young adults are flocking to the Web for
health-related information as much as they are downloading music and playing games online and
more often than shopping online, according to a national survey
from the Kaiser Family Foundation.”
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“One in Four Internet Users Seek Religious
Information”—Reuters
(12.24.2001) (“God trumps money, sex.”)
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Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
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Amen!
“The Age of the
Never Satisfied Customer”
Regis McKenna
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One Person’s Opinion
TP to reporter: “Service is MUCH better! Would you go back to bank tellers and phone
operators? Value that I place on a “smile”: 3 on a scale of 10. Value I place on fast & accurate “digital”
response: 11 on a scale of 10!!
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“CRM has, almost universally, failed
to live up to expectations.”
Butler Group (UK)
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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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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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New Org III: The …
SOLUTIONS IMPERATIVE.
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Animating Force: The Sameness Trap
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Quality Not Enough!
“Quality as defined by few defects is becoming the
price of entry for automotive marketers
rather than a competitive advantage.”
J.D. Power
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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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“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
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“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
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The Big Day!
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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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“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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“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”
Bob Nardelli, GE Power Systems
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New Springs = Sheets & Towels to Turnkey
Collections.Flexible sourcing.
Packaging.Merchandising.
Promotion.Systems & Site mgt.
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Omnicom: 57%
(of $6B) from marketing services
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Who was the number one employer of
architecture school grads in the U.S.
last year?
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“We are a ‘real estate facilities consulting’
organization, not just an ‘interior design’ firm.”
Jean Bellas, founder, SPACE (from SMPS Marketer)
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“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public
companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will
transform the real estate market by turning those REITs into national brands. … Mr. Zell
believes [clients] will start to view those offices as something more than a commodity chosen
chiefly by price and location.” –New York Times (12.16.2001)
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Bottom Line: The …
Solutions Imperative
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Getting Beyond Lip Service!
“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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TP2002: GE Industrial Systems. Farmers. Message I: Same-same kills. Go way up the VA Chain. (Or
else.) Transformation or bust: Full-service/ solutions provider. Great
rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same
space. Mr. Darwin is on the prowl!)
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Re-inventing the Individual.
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“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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“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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26.3
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3 Weeks in May
“Training” & Prep: 187“Work”: 41
(“Other”: 17)
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1% vs.
367%
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Divas do it. Violinists do it. Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it. Surgeons do it. Cops do it.
Astronauts do it. Why don’t businesspeople do it
[very much]?
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Invent. Reinvent. Repeat.
Source: HP banner ad
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Brand = Talent
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Model 24/7*: Sports Franchise GM
*25/8/53
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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 (05.17.00)
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Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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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, Business Week, 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
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“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
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“Investors are looking more and more for a relationship with their financial
advisers. They want someone they can trust, someone who listens. In my experience, in general,
women may be better at these relationship-building skills than are
men.”
Hardwick Simmons, CEO, Prudential Securities
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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
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MantraM3
Talent = Brand
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Speaking of …
Women.
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Women & the Marketspace.
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?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Consumer Electronics … 51%
Cars … 60% (90%)All consumer purchases … 83%
Bank Account … 89%Health Care … 80%
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2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
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$4.8T > Japan
9M/27.5M/$3.6T > Germany
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OPPORTUNITY
NO. 1!
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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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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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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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“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
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STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
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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!”
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It all adds up to …
THE BRAND.
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“WHO ARE YOU [these days] ?”
TP to Client
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“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25
words.) (2) List three ways in which we are UNIQUE … to our Clients.
(3) Who are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Try ’em on a
skeptical Client!
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The Heart of Branding …
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“WHO ARE WE?”
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“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE
Source: Jump Start Your Business Brain, Doug Hall
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“ WHY DOES IT MATTER TO
THE CLIENT?”
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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ”
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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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TP2002: GE Industrial Systems. Farmers. Message I: Same-same kills. Go way up the VA Chain. (Or
else.) Transformation or bust: Full-service/ solutions provider. Great
rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same
space. Mr. Darwin is on the prowl!)
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Thank You!