03.29.2003.29.200707

**NoNo bookbook *Top 500*Top 500 *5/day *5/day (text, voice)(text, voice)

*Marketing = #1 *Marketing = #1 *Risk *Risk

*64*64

**NoNo bookbook *Top 500*Top 500 *5/day *5/day (text, voice)(text, voice)

*Marketing = #1 *Marketing = #1 *Risk *Risk

*64*64

*No book*No book*Top 500*Top 500*5/day (text, *5/day (text, voice)voice)*Marketing = #1*Marketing = #1

*Risk*Risk

*64*64

*No book*No book*Top 500*Top 500*5/day (text, *5/day (text, voice)voice)*Marketing = #1*Marketing = #1

*Risk*Risk

*64*64

*No book*No book*Top 500*Top 500*5/day (text, voice)*5/day (text, voice)*Marketing = #1*Marketing = #1

*Ris*Riskk

*No book*No book*Top 500*Top 500*5/day (text, *5/day (text, voice)voice)*Marketing = #1*Marketing = #1*Risk*Risk

*6*644

Plentyatimetogo.Plentyatimetogo.Plentyaenergy.Plentyaenergy.Plentyamoney.Plentyamoney.

Average # of cars purchased per household, “lifetime”:

1313Average # of cars bought per household after the “head

of household” reaches age 5050:

77Source: Marti Barletta, PrimeTime Women

*No book*No book*Top 500*Top 500*5/day (text, voice)*5/day (text, voice)*Marketing = #1 *Marketing = #1 *Risk*Risk

**5656//FF

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

Avenue A / RazorfishAvenue A / RazorfishCaesars PalaceCaesars Palace3030 March 2007 March 2007

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

Slides at …

tompeters.comtompeters.com

Real deal. Real deal. Big deal.Big deal.

“n”m = tp brand/brand experience. “n”m = tp brand/brand experience. What’s to lose?What’s to lose?

Hang out with “weirdos.”Hang out with “weirdos.”Try stuff.Try stuff.

Fast.Fast.Screw stuff up.Screw stuff up.Try more stuff.Try more stuff.

Aspiration: lovemark.Aspiration: lovemark.Women. (Duh.)Women. (Duh.)

Boomers. (Duh.)Boomers. (Duh.)Boomer Women. (Double Duh.)Boomer Women. (Double Duh.)

EXCELLEXCELL--

ENCE??ENCE??????

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

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

““A pattern emphasized in the case A pattern emphasized in the case studies in this book is the degree to studies in this book is the degree to which powerful competitors not only which powerful competitors not only resist innovative threats, but actually resist innovative threats, but actually resist all efforts to understand them, resist all efforts to understand them, preferring to further their positions preferring to further their positions in older products.in older products. This results in a

surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death.” —Jim Utterback,

Mastering the Dynamics of Innovation

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

EXCELLENCE. EXCELLENCE.

REVENUE.REVENUE.MATTERS.MATTERS.

MOST.MOST.

The Commerce Bank ModelThe Commerce Bank Model

“Cost “Cost cutting is cutting is a death a death spiral.”spiral.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

The Commerce Bank ModelThe Commerce Bank Model

“Are you going to “Are you going to costcost cutcut your way to prosperity?your way to prosperity?

Or …Or …

are you going to are you going to $$$$$pend$$$$$pend your way to prosperity?”your way to prosperity?”

Source:Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hill (Top-line driven; standard —Vernon Hill (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)

EXCELLENCE. EXCELLENCE.

INNOVATE. INNOVATE. OR. OR. DIE.DIE.

TheThe Mess Mess IsIs TheThe

Message! Message! Period!Period!

InnoTacsInnoTacs

We We becomebecome who we hang who we hang

out with 1out with 1

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”

Why Do I love Freaks? Why Do I love Freaks?

(1)(1) Because when Anything Interesting happens … itBecause when Anything Interesting happens … it was awas a freakfreak who did it. (Period.) who did it. (Period.) (2) (2) FreaksFreaks are fun. (Freaks are also a pain.) (Freaks are are fun. (Freaks are also a pain.) (Freaks are

never boring.) never boring.) (3) We need (3) We need freaksfreaks.. Especially in freaky times. (Hint: Especially in freaky times. (Hint:

These are freaky times, for you & me & the CIA & the These are freaky times, for you & me & the CIA & the Army & Avon.) Army & Avon.)

(4) A critical mass of (4) A critical mass of freaks-in-our-midstfreaks-in-our-midst automatically make us-who-are-not-so-freaky at least automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) freaky times—see immediately above.)

(5)(5) FreaksFreaks are the only (ONLY) ones who succeed—as are the only (ONLY) ones who succeed—as in, make it into the history books. in, make it into the history books.

(6) (6) FreaksFreaks keep us from falling into ruts. (If we listen to keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)most organizations are in ruts. Make that chasms.)

We We becomebecome who we hang who we hang

out with 2out with 2

WhackyWhackyWikWikiiWorldWorldWowWow

NowNow

Rob McEwen/CEO/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.

Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.

do do things.things.

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

drill.drill.

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

try try things.things.

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

PLAYPLAY

SERIOUSLYSERIOUSLY

““You can’t be a serious You can’t be a serious innovator unless and until innovator unless and until you are ready, willing and you are ready, willing and

able to seriously play. able to seriously play. ‘‘Serious playSerious play’ is not an ’ is not an

oxymoron; it is the oxymoron; it is the essenceessence of of innovationinnovation.” .”

—Michael Schrage,—Michael Schrage, Serious PlaySerious Play

““Learn not Learn not to be to be

careful.”careful.”

—Photographer Diane Arbus to her students (Careful = The sidelinesCareful = The sidelines, from

Harriet Rubin in The Princessa)

Screw. Screw. things.things.

Up.Up.

““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”

—Samuel Beckett

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““Fail faster. Fail faster. Succeed Succeed Sooner.”Sooner.”

David Kelley/IDEO

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

try.try.Miss.Miss.try.try.

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

S.A.S.A.V.V.

No try. No try. No deal.No deal.

““You miss You miss

100100%% of of the shots you the shots you never take.”never take.”

—Wayne—Wayne GretzkyGretzky

bottom bottom line.line.

““Do one thing Do one thing every day that every day that scares you.”scares you.” —

Eleanor Roosevelt

Pause …Pause …

Think!Think!vs.vs.

do!do!

“Linearist”: think!think!“Non-linearist”: do!do!

“Linearist”: Plan it!Plan it!“Non-linearist”: Try it!Try it!

“Linearist”:

hypothesize!hypothesize!“Non-linearist”:

experiment!experiment!

“Linearist”: failure = failure = unnecessary/product unnecessary/product

of poor planningof poor planning

“Non-linearist”: failure = failure = life (wsc)life (wsc)

“Linearist”: deliberate!*deliberate!*

“Non-linearist”: relentless!relentless!****

* “Do it right the first time” (Hero: Phil Crosby) * “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant)**Never retreat (Hero: U.S. Grant)

“Linearist”: logical!logical!“Non-linearist”:

passionate!passionate!

“Linearist”: give me give me genius!genius!

“Non-linearist”: give give me luck!me luck!

“Linearist”: spotless spotless academic academic record!record!

“Non-linearist”: a.d.d.a.d.d.

“Linearist”:

measured pace!measured pace!“Non-linearist”: fast! fast! faster! fastest!faster! fastest!

“Linearist”: minimize minimize cost.cost.

“Non-linearist”: maximize maximize revenue.revenue.

“Linearist”

office: walls.office: walls.“Non-linearist”

office: none.office: none.

“Linearist”

reads: michael porter. reads: michael porter. Peter drucker.Peter drucker.

“Non-linearist”

reads: doesn’t.reads: doesn’t.

“Linearist”

preferred hockey preferred hockey score: 1-1 in score: 1-1 in

regulation. (OL regulation. (OL /penalty free.)/penalty free.)

“Non-linearist”

preferred hockey preferred hockey score: 7-5. (w/fights.)score: 7-5. (w/fights.)

“Linearist”

criminal record: criminal record: none.none.

“Non-linearist”

criminal record: criminal record: disorderly conduct.disorderly conduct.(repeat offender.)(repeat offender.)

EndEndPause.Pause.

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

The Value-added Ladder/ ECSTASYECSTASY

LovemarkLovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding Experiences

ServicesServicesGoodsGoods

Raw MaterialsRaw Materials

Top 10 “Tattoo Brands”*

Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8

Coke …. 7.7Coke …. 7.7Google .... 6.6Google .... 6.6Pepsi .... 6.1Pepsi .... 6.1Rolex …. 5.6Rolex …. 5.6Nike …. 4.6Nike …. 4.6

Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6

Nintendo …. 1.5Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

The Value-added Ladder/ ECSTASYECSTASY

LovemarkLovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding Experiences

ServicesServicesGoodsGoods

Raw MaterialsRaw Materials

CCXXOO**Chief eXperience Officer

CCDMDM*

*Chief Dream Merchant

CCLL OO*

*Chief Lovemark Officer

““NEW” NEW” MARKETS.MARKETS.

E-nor-mous E-nor-mous Strat-eg-ic Strat-eg-ic opp-or-tun-opp-or-tun-

ityity

women.women.BOOMERSBOOMERS

..GEEZERS.GEEZERS.

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

Women’sWomen’s Trifecta+ Trifecta+

**BuyBuy * *WealthWealth

**LeadLead

++ECLIPSE OF ECLIPSE OF MALESMALES

(Old/Retire; Young/Poorly educated)

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

““The The most most significant variablesignificant variable

in in everyevery sales situation is sales situation is

the the gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer

Jill and Jack buy slacks in black…

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model

Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

COROLLARY. COROLLARY. EXCELLENCE. EXCELLENCE.

WOMEN.WOMEN.RULE.RULE.

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/Services/MMGoods/Goods/MM

Raw Materials/Raw Materials/MM

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

Subject: Marketers & StupiditySubject: Marketers & Stupidity

““It’s 18-It’s 18-44, 44,

stupid!”stupid!”

Subject: Marketers & StupiditySubject: Marketers & Stupidity

Or is it: “18-44 is

stupid, stupid!”

2000-2010 Stats

18-44: -1%-1%

55+: ++2121%%(55-64: ++4747%%)

Boomers’-Geezers’-Womens’ Trifecta+Boomers’-Geezers’-Womens’ Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

Average # of cars purchased per household, “lifetime”:

1313Average # of cars bought per household after the “head

of household” reaches age 5050:

77Source: Marti Barletta, PrimeTime Women

44-65: “New “New Customer Customer Majority”Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

BOTTOM BOTTOM LINE I.LINE I.

Real deal. Real deal. Big deal.Big deal.

“n”m = brand tp. “n”m = brand tp. What’s to lose?What’s to lose?

Hang out with “weirdos.”Hang out with “weirdos.”Try stuff.Try stuff.

Fast.Fast.Screw stuff up.Screw stuff up.Try more stuff.Try more stuff.

Aspiration: lovemark.Aspiration: lovemark.Women. (Duh.)Women. (Duh.)

Boomers. (Duh.)Boomers. (Duh.)Boomer Women. (Double Duh.)Boomer Women. (Double Duh.)

BOTTOM BOTTOM LINE II.LINE II.

Kevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

Ger-Ger-onon-i--i-momo!!