tom peters’ how new business works: rules for re-invention 01.07.2003
DESCRIPTION
Tom Peters’ How New Business Works: Rules for Re-invention 01.07.2003. “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army. - PowerPoint PPT PresentationTRANSCRIPT
Tom Peters’
How New Business Works: Rules for
Re-invention01.07.2003
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief
of Staff, U. S. Army
Sequenom/David Ewing Duncan/Wired11.02
“Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification
process.” “This, I’m told, is the first time a healthy human has ever been screened for the
full gamut of genetic-disease markers.” “On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests.” “You can’t look at humanity separate from machines; we’re so intertwined we’re
almost the same species, and the difference is getting smaller.”
“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
“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
“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
From: Weapon v. Weapon
To: Org structure v. Org structure
“Our military structure today is essentially one
developed and designed by Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“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.
“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)
“Dawn Meyerreicks, CTO of the Defense Intelligence 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
“If early soldiers idealized Napoleon or Patton, network-centric warriors
admire Wal*Mart, where point-of-sale-scanners share information on a near real-time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into
competitive advantage.”—Tom Stewart, Business 2.0
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.
Eric’s Army
Flat.Fast.Agile.Adaptable.Light … But Lethal.Brand You/ Talent/ “I Am An ARMY Of One.”Info-intense.Network-centric.
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.
Uncertainty: We don’t know when things will get back
to normal.
Ambiguity: We no longer know what “normal”
means.
I Believe …
1. Change will accelerate. DRAMATICALLY.2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS. (Business … Health Care … Politics … War … Education … Fundamentals of Human Interaction.)
3. OPPORTUNITIES are matchless. 4. You are either … ON THE BUS … or … OFF THE BUS.5. I WANT TO PLAY! AND YOU?
I. NEW BUSINESS.
NEW CONTEXT.
1.All Bets Are Off.
<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
Vernor Vinge/Mr. Singularity
“The transition time from human history to post-human singularity
time, Vinge thinks, will be astonishingly short—maybe one
hundred hours from the first moment of computer self-
awareness to computer world conquest.”—Esquire/12.2002
“We are at a pivotal point in history. … We are at one of a half dozen turning points that have fundamentally changed
the way societies are organized for governance.” —Philip Bobbitt, The Shield
of Achilles: War, Peace and the Course of History
“There’s going to be a fundamental change in the
global economy unlike anything we have had since the cavemen began bartering.”
Arnold Baker, Chief Economist, Sandia National Laboratories
NOW THAT’S B-I-G!
“The period 2000-2002 will bring the single greatest change in
worldwide economic and business conditions since we came down from the trees.”
David Schneider & Grady Means, MetaCapitalism
“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]
“I genuinely believe we are living through the greatest intellectual moment in history.”
Matt Ridley, Genome
“Doctors are faced with the very real threat of irrelevance in ten years. You’ll go to a lab, have a
blood sample drawn, and a readout of your genetic deficiencies will be
produced—along with ‘Doctor’s Orders’ for appropriate treatment; only there won’t be any doctor.”—Leading Pediatric Cardiologist (11.2002)
Yo, Bioinformatics!
“Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner
than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”
AP/AOL/02-00
“Help! There’s nobody in the cockpit. In the future, will the
airlines no longer need pilots?”
Grumman Global Hawk/ 24 hours/ Edwards to South
Australia
Source: The Economist/12.21.2002
“We are in a
brawl with no rules.”
Paul Allaire
“Strategy meetings held once
or twice a year” to “Strategy meetings needed several
times a week”
Source: New York Times on Meg Whitman/eBay
2. The Destruction Imperative.
“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
C.E.O. to
C.D.O.
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
“Mr. Foster and his McKinsey colleagues collected detailed
performance data stretching back 40 years for 1,000 U.S. companies. They
found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse
they did.”—Financial Times/11.28.2002
“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
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
“When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of Goldman Sachs’ Investment Policy
Committee, answered: I’m sure there are success stories
out there, but at this moment I draw a blank.”
Mark Sirower, The Synergy Trap
“Conglomerates don’t work” —James
Surowiecki, The New Yorker (07.01,2002)
“I believe large research organizations are less transparent, with less communication and more bureaucracy and it is more difficult
and problematic to produce innovations in large institutions.”—
Franz Humer, CEO, Roche
Way to Go, Guys …
2002 write downs from recent
acquisitions …
$1,000,000,000,
000**$1 trillion (Source: Harper’s Index 04.2002)
“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
“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
Lessons from the Bees!
“Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into
smaller colonies which can grow value faster. What the bees are telling us is that the corporate
world has got it all wrong.”David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
TP on Acquisitions
1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.)2. Big (GE, Cisco, Omnicon) acquires small/specialist = Good … if you can retain Top Talent.3. Odds on achieving “projected synergies” among Mixed Big “cultures”: 10%.4. Max Scale Advantages are achieved at a smaller size than imagined.5. Attacked by Big, Mediocre Medium marries Mediocre Medium to “bulk up.” Result: Big Mediocrity … or worse.6. Any size—if Great & Focused—can win, locally or globally.7. Increasingly, Alliances deliver more value than mergers —and clearly abet flexibility.
CEOs appointed after
1985 are 3X more likely to be fired than CEOs appointed before 1985
Warren Bennis, MIT Sloan Management Review
The [New] Ge Way
DYB.com
“Change the rules before
somebody else does.” —Ralph Seferian, VP,
Oracle
“Most of our predictions are based
on very linear thinking. That’s why they will
most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
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
“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)
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
Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen.
Axiom (Hypothesis): We need Masters of Discontinuity/
Masters of Ambiguity … in discontinuous/ambiguous
times.
“In the modern military, risk is anathema to rising stars, who cannot afford any slip-ups on
their records. ‘Zero defects’ and ‘zero tolerance’ are common
bywords.”—Newsweek/09.16.02
“Organize” for … performance & customer satisfaction.
“Disorganize” for … renewal & innovation.
“Rumsfeld values mavericks and tries
to protect and promote them.” —
Newsweek/ 09.16.02
“Rose gardeners face a choice every spring: how to prune our roses. The long-term fate of a rose garden depends on this decision. If you want to have
the largest and most glorious roses of the neighborhood, you will prune hard. You will reduce each rose plant to a maximum of three stems. This
represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the
the rose’s ‘core business.’ However, if this is an unlucky year [late frost, deer, green-fly invasion], you may lose the main stems or the whole plant!
Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will leave more stems on the plant.
You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to
cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes
resources—the extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose
healthier. Tolerance of internal weakness, ironically, allows the rose to be stronger in the long run.”—Arie De Geus, The Living Company
Japan’s Science Gap *
Rice farming culture: uniqueness suppressed. Gov’t control of R & D. Promotion based on
seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. “bold
leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe:
“What we need to create is job insecurity rather than security to make people compete more.”
*Hideki Shirakawa, Nobel laureate, chemistry
December 2000: Swiss House for Advanced Research &
Education. Cambridge, Massachusetts. Xavier
Comtesse: “You never hear a Swiss say, ‘I want to change the
world.’ We need to take more risks.”
“The Word(s)” on Vitality: Gary Hamel
“Sell By” [jettison old crap]
Spin Out [support entrepreneurs]
Spin In [buy young firms]
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be known as the ‘King of
the Tinkerers.’ ”CEO, large financial services company
(New York, 5-99)
Jim & Tom. Joined at the
hip. Not.
Huh?
“Quiet, workmanlike, stoic leaders bring about the big
transformations.”--JC
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
“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of time, rather than to live forever.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a romantic notion. Large companies are
incapable of ongoing innovation, of ongoing flexibility.”
“Increasingly, successful businesses will be ephemeral. They will be built to yield
something of value – and once that value has been exhausted, they will vanish.”
Fast Company (03-00)
“The Futility of Size …
“Virtualization is the recognition that territorial size does not
solve economic problems. … Economic access must become
the substitute for increasing domain.”
Richard Rosecrance, The Rise of the Virtual State
“In Italy for 30 years under the Borgias they had warfare, terror, murder,
bloodshed—and produced Michelangelo, da Vinci and the
Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce
—the cuckoo clock.”
Orson Welles, as Harry Lime, in “The Third Man”
Warren Bennis & Patricia Ward Biederman/
Organizing Genius: Great Groups Don’t
Last Very Long!
W.A. Mozart W.A. Mozart 1756 – 17911756 – 1791
HE CHANGED THE WORLDHE CHANGED THE WORLD
AND AND
ENRICHED HUMANITY ENRICHED HUMANITY
“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 (08.00)
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a
timely death. … We believe that most corporations will find it impossible to
match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in
1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
The Three Levels of Innovation
Transformational
Substantial
Incremental
Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!
Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness.
F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.
Boyd
Eglin Flag: “100% AGAINST ZERO DEFECTS”
“General, if you’re not having accidents, your training program is not what it should be. … You need
to kill some pilots.”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
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)
“Fast Transients”
“Buttonhook turn” (YF16: “could flick from one maneuver to another faster than any aircraft”)
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“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.”/ “Arrange the mind of
the enemy—T.E. Lawrence/ “Float like a butterfly, sting like a
bee”—Ali
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
F86 vs. MiG/Korea/10:1
Bubble canopy (360 degree view)
Full hydraulic controls (“The F86 driver could go from one maneuver to another faster than the MiG driver”)
MiG: “faster in raw acceleration and turning ability”; F86: “quicker in
changing maneuvers”BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
USMC COL Mike Wyly: “kept the enemy off-balance;
they knew Delta Company [RVN] could
show up anywhere, anytime”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Maneuverists”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“The stuff has got to be implicit. If it is explicit,
you can’t do it fast enough.”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
II. NEW BUSINESS. NEW TECH.
3. The White Collar Revolution
& the Death of Bureaucracy.
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
“The coefficient of friction associated with the grunge of business
is amazing!”Michael Schrage
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
There Is No Such Thing as the Tooth Fairy.
IBM Self-healing eServers*
*Approximate TV ad copy (11.2002)
“We own all the intellectual property, we farm out all the
direct labor.”
Jim McDonnell, VP, IBM
[“Don’t own nothin’ if you can help it. If you can, rent your shoes.”
F.G.]
“The virtual corporation is research, development, design, marketing, financing, legal, and
other headquarters functions wth few or no manufacturing
capabilities – a company with a head but no body.”
Richard Rosecrance, The Rise of the Virtual State
Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks.
Hans Ohlin (50 yr old chief of coronary care, Univ of
Lund/SW) : 620. Lars Edenbrandt’s
software: 738.
*Only this time it matters!
“Most physicians believe that diagnosis can’t be reduced to a set of generalizations—to a ‘cookbook.’ … How often does my intuition lead me astray? The radical implication of the
Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawed—it causes more mistakes
than it prevents.” —Atul Gawande, Complications
“Doctors are faced with the very real threat of irrelevance in ten years. You’ll go to a lab, have a
blood sample drawn, and a readout of your genetic deficiencies will be
produced—along with ‘Doctor’s Orders’ for appropriate treatment; only there won’t be any doctor.”—Leading Pediatric Cardiologist (11.2002)
Probable parole violations: Simple model (age, # of previous offenses, type of crime)
beats M.D. shrinks.
100 studies: Statistical formulas > Human
judgment. “In virtually all cases, statistical thinking
equaled or surpassed human judgment.”—Atul Gawande,
Complications
“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
Vernor Vinge/Mr. Singularity
“The transition time from human history to post-human singularity
time, Vinge thinks, will be astonishingly short—maybe one
hundred hours from the first moment of computer self-
awareness to computer world conquest.”—Esquire/12.2002
N.W.O./Holy Moly:
Unemployment up 2% … real wage growth highest since 60s … productivity soaring.
Source: BW/02.11.2002
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
4. IS/ IT/ Web … “On the Bus” or “Off the
Bus.”
2.5G, 3G, 4GWindowsSymbian
JavaBluetooth
Wi-FiPCs-PDAs-Cell“phones”
E-business vs. M-businessEtc.
Outsider’s view: (1) Billions are being spent, even in a down
market. (2) NOBODY HAS A CLUE AS TO WHO THE
WINNERS—AND LOSERS—WILL BE. (3) Yet you must play.
Now. Hard. Fast.
100 square feet
Dell’s OptiPlex Facility
Big Job: 6 to 8 hours.(80,000 per day)
Parts Inventory: 100 square feet.
The Real “News”: X1,000,000
TowTruckNet.com
Impact No. 1/ Logistics &
Distribution: Wal*Mart … Dell … Amazon.com …
Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.
… Ad Infinitum.
Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
“If early soldiers idealized Napoleon or Patton, network-centric warriors
admire Wal*Mart, where point-of-scale-scanners share information on a near real-time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into
competitive advantage.”—Tom Stewart, Business 2.0
?: Americans on the Web/03.2002
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
157,000,000*
* +2M/mo.Source: Newsweek (03.25.2002)
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
Jargon Bath!
Bureaucracy free …Systemically integrated …
Internet intense …Knowledge based …
Time and location free …“Instantly” responsive …
Customer centric …Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain
tightly wired/ friction-freeInternet intense = Do it all via the Web
Knowledge based = Open accessTime and location free = Whenever, wherever
“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product
and service rapidly tailored to client requirements
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“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
Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
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.
“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
I’net …
… allows you to dream dreams
you could never have dreamed
before!
“Don’t rebuild. Reimagine.”
The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002
HUMANA’s Dreams. Emphesys: “Put everything on the Internet.” CEO Mike McCallister, charge to 200-person “outside” I’net unit: “Imagine an ideal Web-based health insurance system and then create a product as close as possible to
that vision.” Start with own employees: SmartSuite. Member employees: “Plan their
own coverage and shoulder more costs.” Dell is model: “Fully customized health for every individual.” Marketing pitch for employers: “Buy choice for employees through a single
source—Humana.”
Source: Fortune/05.27.2002
“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have
known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold
here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined
[ Words to Live By …
“Hierarchy is an organization with its face
toward the CEO and its ass toward the customer.”
Kjell Nordström and Jonas Ridderstråle, Funky Business]
“Hyperlinks subvert hierarchy!”
The Cluetrain Manifesto
Case: CRM
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Amen!
“The Age of the
Never Satisfied Customer”
Regis McKenna
“The Web enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee, patient
or citizen is dead.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
“Parents, doctors, stockbrokers, even military leaders are starting to
lose the authority they once had. There are all these roles premised on access to privileged information. …
What we are witnessing is a collapse of that advantage,
prestige and authority.”Michael Lewis, next
“A seismic shift is underway in healthcare. The Internet is
delivering vast knowledge and new choices to consumers—raising their
expectations and, in many cases, handing them the controls.
[Healthcare] consumers are driving radical, fundamental change.”
Deloitte Research, “Winning the Loyalty of the eHealth Consumer”
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
Psych 101: Strongest Force on Earth?
My need to be in perceived control of my universe!
UBIQUITY! “It’s the cars, not the tires, that squeal”:
NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McD’s, gas stations and parking lots
next. OnStar (GM/1.5M). Plus: “black boxes,” GPS (the case of
the $450 ticket), CA smog offenders.
“CRM has, almost universally, failed
to live up to expectations.”
Butler Group (UK)
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.”
Rebuttal: (1) Service sucked in the “pre-electronic” age. (2) NewGen believes in the screen! (So do I.)
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!!
M. Rogers: -5% defections = +25% to +85% profit. Lose
15% to 35% p.a. 69% defect as a result of lousy sales or
service experience. (Q:But is this the point???? A: Yes.
No.)
CGE&Y (Paul Cole): “Pleasant
Transaction” vs. “Systemic Opportunity.” “Better job
of what we do today” vs. “Re-think overall
enterprise strategy.”
Message CRM: Madness = 600 CRM vendors. ???: “Do it all” or “do
something.” Past: over-invest in low-value customers. Idea: better experience, not off-load work to
customer. Relationship = f(dialogue & knowledge & duration). Key: new
attitudes, DESTRUCTION of functional barriers to info & action.
Wells Fargo ($285B): Master of B&C
$900M since ’99. 3M. 1/3rd of chk
acct customers on line. 5,400 branches: 4 of 5 who do product
research on line purchase at branch. Wire transfer, save 30%; 17% less calls. Material diff to bottom line.
Source: BW Online (03.20.02)
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.”
B of A: 4M of 15M (“… way beyond the early adopters”).
Source: The Wall Street Journal/10.21.2002
The Cluetrain Manifesto
“Hyperlinks subvert hierarchy!”
The Cluetrain Manifesto
Corporate Resistance to “It”
“It all goes back to fear of losing control!”
The Cluetrain Manifesto
“E-business is the final nail in the coffin
for bureaucracy at GE.”
Jack Welch/GE Annual Report 2000
[ Words to Live By …
“Hierarchy is an organization with its face
toward the CEO and its ass toward the customer.”
Kjell Nordström and Jonas Ridderstråle, Funky Business]
Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the
Coming Century
Hong Kong: Prototypical “Virtual State”
83% Service8% Mfg.
Source: Richard Rosecrance, The Rise of the Virtual State
“The new dependence on productive assets located within someone else’s state represents
an unprecedented trust in the integrity and peacefulness of strangers.”
“In its pure form – an ideal model toward which many states are tending – the virtual state
carries within it the possibility of an entirely new system of world politics.”
Richard Rosecrance, The Rise of the Virtual State
“Imagine a world where a citizen could search the globe to
assemble “my government,” the ultimate in customized,
customer-centric services. Health care from the Netherlands, business incorporation in
Malaysia …”
Don Tapscott
“The virtual corporation is research, development, design, marketing, financing, legal, and
other headquarters functions with few or no manufacturing
capabilities – a company with a head but no body.”
Richard Rosecrance, The Rise of the Virtual State
“We own all the intellectual property, we farm out all the
direct labor.”
Jim McDonnell, VP, IBM
Is There a There There: The Ericsson Case
1. 50+% Mfg to Solectron/Flextronics2. Substantial R&D to India3. Division for licensing technology4. JV with Sony on “crown jewel” handsets5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal”
Source: BW/11.04.02
“The Futility of Size …
“[Regarding this issue] the new process of virtualization fully asserts itself. Virtualization is the recognition
that territorial size does not solve economic problems. … Economic
access must become the substitute for increasing domain.”
Richard Rosecrance, The Rise of the Virtual State
TP: Skill at creating, exploiting, and exiting crucial alliances beats
ownership of fixed assets.
“At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.”
Richard Rosecrance, The Rise of the Virtual State
What’s the Common Denominator?
The Dutch … the British … the Rothschilds … Cargill … Sumitomo …
the KGB … the CIA … Mossad … Enron … Wal*Mart … McKinsey …
FedEx … UPS … Mr. Speaker … Henry Kissinger … Executive secretaries …
the Corner Grocer … Women-in-general?
Masters of information acquisition, manipulation, dissemination, and
utilization.
Networkmeisters.
Agile.
Temporary.
Virtual is thy name.
Motto: Applied information is power/wealth.
III. NEW BUSINESS. NEW
VALUE PROPOSITION.
5. The “PSF Solution”:
The Professional Service Firm Model.
So what will be the Basic Building
Block of the New Org?
Every job done in W.C.W. is
also done “outside”
…for profit!
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
TP to NAPM: You are the …
Rock Stars of the
B2B Age!
Message: You are Re-invention Evangelists!
ChicagoNovember 1999:
HRMAC
“support function” / “cost center” / “bureaucratic
drag”
or …
Are you “Rock Stars of the
Age of Talent”
“P.S.F.”: Summary
H.V.A. Projects (100%)Pioneer Clients
WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”
Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++)
When: Now!
BMW’s Designworks/USA:
>50% from outside work
Bill of (SELECTIVE) Rights
YOU HAVE THE RIGHT TO CHOOSE YOUR CLIENTS! (Wanna be-stay-get COOL … Work With Cool Clients!)
(YOU ARE YOUR CLIENT LIST.) (LIFE IS TOO SHORT TO WORK WITH
JERKS.) (Mass marketers: TARGET INNOVATION. E.g.: African-Americans … Hispanics … the Aging Population
… Greens … Women)
Culture Change is not “Corporate.”Culture Change is not a “Program.”
Culture Change does not take “Years.”Culture Change does not start “Today.”
Culture Change starts Right Now!Culture Change
Lives in the Moment!Culture Change is
Entirely in Your Hands!
What Do I “Do” First?
One Minute Excellence!*
*Thomas Watson
C.I.O. to
C.E.F.R.N.S.*
*Chief Evangelist For
Really Neat Stuff
G.M. = The Recruitment and Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets on Projects. [Period!]
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
Model PSF …
(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.
(3) Non-awesome are outsourced (75%??).
(4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!
“Typically in a mortgage company or financial services company, ‘risk
management’ is an overhead, not a revenue
center. We’ve become more than that.
We pay for ourselves, and we actually make money for the company.”—Frank Eichorn,
Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
The “PSF Problem”
“Professionalism” = Arrogance = Pseudo-
science. “Hear no evil, see no evil, don’t rat out
your peers” … Docs, Teachers, Clergy (Law), Accts (Berardino)
6. The Heart of the Value
Added Revolution: PSFs Unbound/ The
“Solutions Imperative.”
Base Case: The Sameness Trap
“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, Unique now … or never
“While everything may
be better, it is also increasingly the same.”
Paul Goldberger on retail, “The Sameness of Things,” The New York Times
“We make over three new product announcements a
day. Can you remember
them? Our customers can’t!”Carly Fiorina
“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
Funky Business: “To succeed we must stop being so goddamn
normal. In a winner-takes-all world,
normal = nothing.”
“When we did it ‘right’ it was still pretty ordinary.”
Barry Gibbons on “Nightmare No. 1”
“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
SWA > American +
Continental + Delta + Northwest + United + USAirways.
Source: Boston Globe (12.22.2001)
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
“The Internet is the most effective profit-killer on earth … it stimulates a TRUE FRE
MARKET; and a real free market is the most dangerous of marketplaces for
companies selling the SAME OLD STUFF. To those with COURAGE, free markets are
great—they help kill off the deadwood competitors who don’t have the courage
to change—making way for them to LEVERAGE their DRAMATIC DIFFERENCE
into profitable growth.”—Doug Hall
The Big Day!
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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).
“You are headed for commodity
hell if you don’t have services.”—Lou Gerstner on IBM’s coming
revolution (1997)
Service-Systems Paradox: Cut & Grow
Automate 75% of “commodity” service activities
and/but
Add value via people-intensive “strategic/systems-integration
activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)
AT&T: President David Dorman: Back to long distance … but with “bundles of lucrative corporate services” for the likes of Merrill
Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers
(50%)—hold on to high enders.
Source: BW/05.20.2002
Is There a There There: The Ericsson Case
1. 50+% Mfg to Solectron/Flextronics2. Substantial R&D to India3. Division for licensing technology4. JV with Sony on “crown jewel” handsets5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal”
Source: BW/11.04.02
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“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
Keep In Mind: Customer
Satisfaction versus
Customer
Success
Was: “Big Iron” Transformer Dudes Division.
Is: Air Traffic Controllers of Electrons.
Was: Bunch of Guys Who Make Circuit Breakers Division.
Is: GE Industrial Systems.
E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
Leased AC: Units of “Coolth”
Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ …
He wants to capture home improvement dollars wherever and
however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling relationship”).
Source: USA Today/06.14.2002
“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)
New Springs = Turnkey
Flexible sourcing.Collections.Packaging.
Merchandising.Promotion.
Systems & Site mgt.
“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
“Our mission is to go from being the world’s premier timeshare—which is a large idea in a small industry—to being
what we call the market makers for global travel and leisure. We need to enable developers to be involved in
more travel and leisure products, rather than just the timeshare side.”—
Ken May, RCI (Source: Developments)
“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)
“ ‘Architecture’ is becoming a commodity.
Winners will be ‘Turnkey Facilities Management’
providers.”SMPS Exec
“We are a ‘real estate facilities consulting’ organization, not just
an ‘interior design’ firm.”
Jean Bellas, founder, SPACE (from SMPS Marketer)
Omnicom: 57% (of
$6B) from marketing services
Who was the number one employer of
architecture school grads in the U.S.
last year?
Message: Eat Or Be Eaten.
HP. Sun. IBM. GE/PS. GE/IS. (GE/AE. GE/MD.)
UTC. Farmers. Delphi. UPS/ FedEx/ Ryder.
Springs. Omnicom. IDEO. Accenture. Equity Office
Properties. RCI. Etc. Etc.
Words: Partners … Value Added … Intellectual-capital Added … Consultative-skills Added …
Implementation Added … Model “PSF” … Outsourcing (??) …
Acquisitions-led (Omnicom et al.) … “Experiences”- (“Solutions”-) (“Customer Success”-) driven.
Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2)
Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer
Success.”
Model2002/3/4/5/??
Dell* + IBM** =
Magic
*Cut (ALL) the bullshit
**Add (LOTSA) “soft”/“integrative”/“experiences” value
The Seagate Exception. (Paradox?
Possibility?)
7. The …
Solutions25.**NO MORE “SILOS.” NO MORE
“STOVEPIPES.” (DAMN IT.)
1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.)9. Solutions = “Our ‘culture.’ ”10. Partner with B.I.C. (Best-In-Class). Period.
“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.
“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)
“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful computer technology and other
modern information-based systems we could make a
revitalized, leaner military force that is designed to outsee,
outmaneuver and outfight any foe.” —Bill Owens, Lifting the Fog of War
“P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say Over Research”—Advertising
Age (03.25.2002)
12. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.13. Project Management can come from any function.14. WE ARE ALL IN SALES. PERIOD.15. We all invest in “wiring” the customer organization.16. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)17. We use the word “PARTNER” until we all want to barf!18. We NEVER BLAME other parts of our organization for screw-ups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”
21. We believe in “High tech, High touch.”22. We are DREAMERS.23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)24. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!
Q: Is that all there is?
A: Quite possibly.
“Roche’s New Scientific Method”—Fast
Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.” “The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.”
Duh???*: “We’ve come up with a solution. … We’ve begun to create a form of
communications that is much better than we had before, and that’s allowed us to gather better data. We’ve finally realized
that we have an interplay with other hospitals and with pre-hospital.”—Dr. Ben Honigman, ER, U. Colorado Hospital, on “diverts” (Denver
Post/05.05.02)
*Internet + Data + Open data exchange + Barrier busting
Innovation & Speed’s “New Basics”*
1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems” IS—at home & throughout supply chain. Web based.6. F-L-A-T.7. EVP (S.O.U.B), etc.*Innovation, Speed, CRM, “Experience”/ “Solution” demand this
XF25: WOW Projects (100%). Physical Co-location (geologists &
geophysicists). Strategic firings of turf kings (top performer goes). Bonuses
(big). Deep dipping. Job rotation (musical chairs at the top). EVP/SOUB. Lots of kids (Instant Messaging). Early Proj Mgt experience. Take techies on
sales calls. Symbolic stuff (black berets).
“Supply Chain” 2000:
“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized
home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My
Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe
Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.”
Red Herring (09.2000)
KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.
WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.
The Real “New Economy”
“Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on the
board stays the same but the capabilities of the pieces randomly change. Knights now move like
bishops, bishops like rooks … Technology does that. It rubs out boundaries that separate industries.
Suddenly new competitors with new capabilities will come at you from new directions. Lowly truckers in
brown vans become geeky logistics experts. …”
Business 2.0 (8.2001)
IV. NEW BUSINESS. NEW
BRAND.
8. A World of Scintillating/
Awesome/ WOW “Experiences.”
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride
through small towns and have people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
“The [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
“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
“Guinness as a brand is all about community.
It’s about bringing people together and sharing
stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
WHAT CAN BROWN DO FOR YOU?
From “Service’ to “Cause”
7X. 730A-800P. F12A.*
*Plus: WOW Department’” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce
Bank/NJ ($10B). Source: FC05.02.
The “Experience Ladder”
Experiences Services
Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
Message:
“Experience” is the
“Last 80%”
P.S.: “Experience” applies to all work!
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service
economy): $10.001990: Party @ Chuck E. Cheese
(experience economy) $100.00
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
“Lexus sells its cars as containers for our
sound systems. It’s marvelous.”—Sidney Harman/
Harman International
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
“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
First Step (?!): Hire a theater director, as
a consultant or FTE!
“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.]
Extraction & Goods: Male dominance
Services & Experiences: Female
dominance
“Women don’t buy
brands. They join them.”
EVEolution
The “Experience Ladder”
Experiences Services
Goods Raw Materials
Ladder Position Measure
Solutions Success(Experiences)
Services Satisfaction
Goods Six-sigma
9. Experiences+: Embracing the
“Dream Business.”
DREAM: “A dream is a complete moment in the life of a client.
Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The
opportunity to help clients become what they want to be.” —Gian Luigi
Longinotti-Buitoni
Common Products “Dream” Products
Maxwell House StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners PeleCNN Millionaire
Source: Gian Luigi Longinotti-Buitoni
Building the Creative Organization
Choose a creator: The cultural leader who gives the company an aesthetic point of view.Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion.Prepare vertically: Develop a rigorous understanding of the product and the client.Develop horizontally: Promote curiosity in unrelated disciplines.Lead emotionally: Engender passionate dedication through vision and freedom.Build for the long haul: Creativity requires a lifetime commitment.
Source: Gian Luigi Longinotti-Buitoni
Emotional Design that Interprets Dreams
“Zero defects”: Only the starting point.
Love at first sight.Design for the five senses.
Develop to expand the Main Dream.Design so as to seduce through the
peripheral senses.
Source: Gian Luigi Longinotti-Buitoni
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
Constantly Magnify Perceived Value
Maximize your value-added by fulfilling the dreams of your clients.
Only invest in what is valuable for your client.Don’t let the short-term results weaken the
long-term value of your brand.Balance rigorous control of the financial endeavor
with the emotional management of your brand.Build a financial structure that allows risk-taking:
NO RISKS—NO DREAMS.Establish long-term “price power” in order to avoid
the trap of the commodity product.
Source: Gian Luigi Longinotti-Buitoni
10. The [Mostly Ignored] “Soul” of “Experiences”:
Design Rules!
Design Myths.
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …
Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.
* List No. 1, 1999
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Design Transforms even the [Biggest] Corporations!
TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”
(Advertising Age)
Lady Sensor, Mach3, and …
$70M on developing the OralB CrossAction toothbrush
23 patents, including 6 for the packaging
Source: www.ecompany.com [06.00]
Design2002
LISTERENE’s … PocketPaks
WESTIN’s … Heavenly
Westin’s …
Heavenly Bed
Design’s place in the universe.
And Tomorrow …
“Fifteen years ago companies competed on price. Now it’s
quality. Tomorrow it’s design.”
Robert Hayes
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
“Design is treated like a religion at
BMW.”Fortune
“The new Beetle fails at most categories. The only
thing it doesn’t fail in is
drop-dead charm.”Jerry Hirshberg, Nissan Design International
Object of Desire!
“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in
point: the iMac. Suddenly, a computer
is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.”
Katherine McCoy & Michael McCoy, Illinois Institute of Technology
“The good 10 percent of American product design comes
out of big-idea companies that don’t believe in talking to the
customer. They're run by passionate maniacs who make everybody’s life miserable until
they get what they want.”
Bran Ferren, Applied Minds/Wired 1-2001
“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
Check Out the Language:
“Tomorrow it’s design …”“Design is the only thing …”
“Design is … religion ...”“Drop-dead charm …”“Object of desire …”
“Passionate maniacs …” “Fundamental soul …”
Bottom Line.
Design “is” … WHAT & WHY I LOVE.
LOVE.
I LOVE my ZYLISS Garlic Peeler!
All Time No.1 (TP)
Ziplocs
Design “is” … WHY I
GET MAD. MAD.
Wanted: THE DESIGNER OF MY
RADIO SHACK PHONE. Major
Reward!
Design is never neutral.
Hypothesis: DESIGN is the principal difference between love and
hate!
THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much]
further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL
REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR
SERVICE OR EXPERIENCE. Design, as I see it, is
arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t.
Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the
front burner.
Message (?????): Men cannot design for women’s
needs.
“Perhaps the macho look can be interesting … if you
want to fight dinosaurs. But now to survive you need intelligence,
not power and aggression. Modern intelligence means
intuition—it’s female.”
Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
Step No. 1:
NOTEBOOK POWER!
[Start recording the awesome & the awful]
User …
STOP BLAMING
YOURSELF! (Don
Norman/Design of Everyday Things)
“Sometimes I have episodes of wild fury in rental cars. It’s not road
rage. It’s more like design rage.”
Susan Casey, www.ecompany.com
11. Design+ = “Beautiful” Systems.
Fred S.’s “mediocre” thesis. Herb K.’s
napkin.
Great design = One-page
business plan (Jim Horan)
There Are Lawyers … and Then There Are Lawyers: John De Laney/ICM
ANYTHING TRULY IMPORTANT CAN BE
BOILED DOWN TO 1/3RD PAGE.*
(*NO SHIT.)
K.I.S.S.: Gordon Bell (VAX
daddy): 500/50. Chas.
Wang (CA): Behind schedule?
Cut least productive 25%.
Systems: Must have. Must
hate. / Must design. Must un-
design.
Mgt. Team
includes … EVP (S.O.U.B.)
Executive Vice President, Stomping Out Unnecessary Bullshit
“Ninety percent of what we call ‘management’ consists of making it difficult for people to
get things done.” – P.D.
First Steps: “Beauty Contest”!
1. Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form.
2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work
of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity.
3. Re-invent!4. Repeat, with a new selection, every 15 working
days.
12. “It” all adds up
to … THE BRAND.
The Heart of Branding …
“WHO ARE WE?”
“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, Unique now … or never
“WHAT’S OUR
STORY?”
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand
that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
DO THE HOUSEKEEPERS & CLERKS “BUY
IT”? [ARE YOU V-E-R-Y SURE?]
“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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 (Execs Don’t Get It:
See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions:
“How likely are you to purchase this new product or service?” (95% to 100% weighting by execs)
“How unique is this new product or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain
“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the
message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,
major consumer goods company
“Instead of having the brand be seen as good-better-best for the same type of clothing, they’ve
got to give it more uniqueness.” —David Martin,
Interbrand US, on The Gap’s problems
“You do not merely want to be the best of the best. You
want to be considered the only ones who do
what you do.”
Jerry Garcia
“A great company is defined by the
fact that it is not compared
to its peers.”Phil Purcell, Morgan Stanley
Brand = You Must Care!
“Success means never letting the competition
define you. Instead you have to define yourself based on a point of view you care deeply
about.” Tom Chappell, Tom’s of Maine
“We’re not going to be driven by where we think a funding
agency would like to see us go. We’re going to build our case …
and then find an organization that agrees with us.”
Stephen Spongberg, Polly Hill Arboretum
“WHY DOES IT MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
“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!
Branding: Is-Is Not “Table”
TNT is not: TNT is: TNT is not:
Juvenile Contemporary Old-fashioned
Mindless Meaningful Elitist
Predictable Suspenseful Dull
Frivolous Exciting Slow
Superficial Powerful Self-important
“Salt is salt is salt. Right? Not when it
comes in a blue box with a
picture of a little girl carrying an umbrella. Morton International continues to
dominate the U.S. salt market even though it charges more for a product that is
demonstrably the same as many other products
on the shelf.”
Tom Asaker, Humanfactor Marketing
What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and
you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded
sub-$200 watch market, they made it into a brand name, named after the most
irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
V. NEW BUSINESS. NEW
WORK.
13. Toward Work that Matters: The
WOW Project.
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
TP: “Your ‘signature’ is not ‘I work for Dow.’ It’s, ‘’I
accomplished [INCREDIBLY COOL PROJECT] while I
was associated with Dow.’”*
*Terms: Signature. Portfolio. Projects. Braggables.
Language matters! Wow! BHAG! “Takes
your breath away!”
“Let’s make a dent in the universe.”
Steve Jobs
Your Current Project?
1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)
Measures
–WOW!–Beauty!–Raving Fans!–Impact!
Language
matters!
“We shape our buildings. Thereafter
they shape us.”—WSC
“We shape our words. Thereafter
they shape us.”—TJP
“Astonish me!” / S.D.
“Build something great!” / H.Y.
“Immortal!” / D.O.
Motto: No damn
J.A.M.S.
Legacy!
TP: “Your ‘signature’ is not ‘I work for Dow.’ It’s, ‘’I
accomplished [INCREDIBLY COOL PROJECT] while I
was associated with Dow.’”*
*Terms: Signature. Portfolio. Projects. Braggables.
Herman Edwards: “I picked up one of those Jets books and I told them, ‘What you do as a football team is your legacy. When you’re 80 years old, what you’ve
done will be in this book and no one can take that away from you. Your grandkids, your kids after that, they will know what you did. It’s about leaving your name in
stone.”
Source: The New York Times (12.31.02)
COL Richard Hallock (to incoming SECDEF James Schlesinger): “You must understand that if you want
to leave a legacy it is vital for you to make a quick decision about what you want the legacy to be …
because after several months you become so caught up in the business of the Pentagon, so overwhelmed,
that it will be too late. Pick a few projects and put the full weight of the office behind them. Guide the
projects. Nurture them. Know from the very beginning that this will be your legacy. Force them
through the bureaucracy.”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
14. WOW Projects for the “Powerless”: A
Surefire Recipe.
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA: Model F4
Find a Fellow
Freak Faraway
F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
And …
K2KK*S2SS***Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
“Find something small that you can turn
around. If you’re on a 9-game losing streak, you need to start with one great inning.”—Rudy
BOTTOM LINE
The Enemy!
Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
“Nobody gives you power. You just take it.”—Roseanne
Kurt Carlson to young Marilyn
Carlson: “If you don’t like Sunday School,
change it!” (She did.)
“ ‘Obeying the rules’ is
obeying their rules. [Women] can never be
powerful as long as they try to be in charge in the same
way men take charge.”Harriet Rubin,
The Princessa: Machiavelli for Women
“Don’t just express yourself. Invent yourself. And don’t
restrict yourself to off-the-shelf models.”—Henry Louis Gates, Jr.,
commencement address, Hamilton College
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”*Fortune, article on “Most Admired Global Corporations”
“To Be somebody or to
Do something”BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
Epitaphs Epitaphs
from from
HellHell
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
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!
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HE MADE BUDGET! HE MADE BUDGET!
(AGAIN & AGAIN.)(AGAIN & AGAIN.)
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HIS NET WORTH WAS $11,000,000HIS NET WORTH WAS $11,000,000
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HE HIT QUARTERLY HE HIT QUARTERLY
EARNINGS TARGETS 44 EARNINGS TARGETS 44
TIMES IN A ROW.TIMES IN A ROW.
WHO WILL GO TO STOCKHOLM? (Damn it.)
“Very simple. I never edited
books I didn’t love.” — J.O., on her consistent
success as an editor
If you are not prepared to be fired over your
beliefs … you are working on the
wrong project - TP
“If your boss demands loyalty, give him
integrity. But if he demands integrity, give
him loyalty.”BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
IMPLEMENTATION SECRETS. Credibility. Demos & End Runs & Being There. Mr. OSHA Maine. Find three COs. Seek
determined alumnae. Go to Bangkok. (Forget: “How do I
erase the old?” Supplant rather than change the regnant
heirarchs.)
It’s politics, stupid! (Play or sit on the sidelines.)
“White-wagon kill”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
15. Bringing WOW Work to Fruition:
The Sales25.
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
It’s politics, stupid! (Play or sit on the sidelines.)
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!
16. Boss Work: Demos, Heroes,
Stories … Or: Starting a WOW Projects
Epidemic.
Premise: “Ordering” Systemic Change is a Stupid Waste
of Time!
Demos! Heroes! Stories!
Leapfrog Group: “Lead Frogs”
Demo = Story
“A key – perhaps the key – to leadership is the
effective communication of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
MBSA!*
*Managing By Story-ing Around/David Armstrong
Culture of Prototyping
“Effective prototyping may be
the most valuable core competence an innovative organization can
hope to have.”
Michael Schrage
Think about It!?
Innovation = Reaction to the Prototype
Michael Schrage
He who has the quickest O.O.D.A.
Loops* wins!*Observe. Orient. Decide. Act. /
Col. John Boyd
“Success is the ability to go from failure to
failure without losing your enthusiasm.”
Winston Churchill (as quoted by John Peterman)
“Some people look for things that went wrong and
try to fix them. I look for things that went right
and try to build on them.” —Bob Stone/ Mr.Rego/ Confessions of an
Uncivil Servant
“Find something small that you can turn
around. If you’re on a 9-game losing streak, you need to start with one great inning.”—Rudy
REAL Org Change: Demos & Models (“Model
Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned
to reinvent gov’t”)/ Stories & Storytellers (Props!)/
Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/
Cheerleaders & Recognition (Pos>>Neg, Volume)/
New Language (Hot/Emotional/WOW)/ Seekers
(networking mania)/ Protectors/ Support Groups/
End Runs—“Pull Strategy” (weird alliances, weird
customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/
Speed (O.O.D.A. Loops—act before the “bad guys” can react)
C.f., Bob Stone, Confessions of an Uncivil Servant
VI. NEW BUSINESS. NEW
YOU.
17. Re-inventing the Individual: Brand
You/ You Inc./ Free Agent Nation (Or Else.)
“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
“What strategic motto will dominate this transition from nation-state to market-state? If the slogan that animated the
liberal, parliamentary nation-states was ‘make the world safe for democracy,’ what
will the forthcoming motto be? Perhaps ‘making the world available,’ which is to say creating new worlds of choice and protecting the autonomy of persons to
choose.” —Philip Bobbitt, The Shield of Achilles: War, Peace and the Course of History
“better material welfare” vs. “maximize the opportunity of its
people” —Philip Bobbitt, The Shield of Achilles:
War, Peace and the Course of History
“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
New World of Work
< 1 in 10 F500#1: Manpower Inc.
Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27M
Total: 31M-55MSource: Daniel Pink, Free Agent Nation
Minimum New Work SurvivalSkillsKit2002
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
Sam’s Secret #1!
Minimum New Work SurvivalSkillsKit2001
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
“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)
“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)
26.3
3 Weeks in May
“Training” & Prep: 187“Work”: 41
(“Other”: 17)
1% vs.
367%
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?
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
Invent. Reinvent. Repeat.
Source: HP banner ad
“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
PRECEDENT!
“No prudent man dared to be too certain of exactly who he was.
Everyone had to be prepared to become someone else. To be
ready for such perilous transmigrations was to become
an American.”—Daniel Boorstin
Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll
also be known for [1 more thing].– My current Project is challenging me …– New things I’ve learned in the last 90 days include …– My public “recognition program”
consists of …– Additions to my Rolodex in the last 90 days include …
–My resume is discernibly different from last year’s at this time …
T.T.D./Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the Yellow Pages
They “Get it”?!– stone mason– electrician– plumber– tiler– cabinet maker– contractor– blacksmith– well driller– blaster– sheep shearer– etc.
“When was the last time you asked,
‘What do I want to be?’ ” Sara Ann Friedman, Work Matters
“The time seems appropriate to rethink the
notions of self and identity in this rapidly
changing age …”
Tara Lemmey, Project LENS, past president Electronic Frontier Foundation
“I am an American, Chicago born, and go at things as I have taught myself, free-style, and will make the record in my own way.”
Saul Bellow, The Adventures of Augie March
“I don’t think there’s anything worse than being
ordinary.”American Beauty
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
Thriving in 24/7 (Sally Helgesen)
START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of
where we are.
LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.
CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your
own business.
WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking
people up.”
THE I work for a company called
Me STREET JOURNAL
Adventures in Capitalism
THE rise up and flee your cubicle STREET JOURNAL
Adventures in Capitalism
Bill Parcells’ World/ Brand You World!
BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
NY Post (9/99)
18. Boss Job One:
The Talent Obsession.
Brand = Talent.*
*Duh.
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
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Model 25/8/53
Sports Franchise GM
“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
Visibly energetic/ Passionate/ Enthusiastic … about everything.
Engaging/ Inspires others. (Inspires the interviewer!)
Loves messes & pressure. Impatient/ Action fanatic.
A finisher.Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about
her work.)Smart.
Curious/ Eclectic interests/ A little (or more) weird.Well-developed sense of humor/ Fun to be around.
******
No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: “Did you visibly grow while
working with X?” / “How has the department/team grown on a ‘world-class’ scale during X’s tenure?”)
2. Greatness
Only The Best!
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
“Differentiation is all about being extreme, rewarding the best and
weeding out the ineffective. … You build strong teams by treating
individuals differently. Just look at the way baseball teams pay 20-
game winning pitchers and 40-plus homerun hitters.”—Jack Welch
3. Performance
Up or out!
“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million
in 2 years.”
Ed Michaels, War for Talent
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
Bonus/TP: $1.00 for “competence.”
$249.00 for “attitude”/ “honesty.”
4. Pay
Fork Over!
“Top performing companies are two to four times more likely
than the rest to pay what it takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
5. Youth
Grovel Before the Young!
“Why focus on these late teens and twenty-
somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history,
children are more comfortable, knowledgeable and literate than their parents about an
innovation central to society. … The Internet has triggered the first industrial revolution in history
to be led by the young.”
The Economist [12/2000]
8 Minutes*
—Dr. Sugata Mira, NIIT/ New Delhi/ 1999**
*Ignorance to Surfing**And then there’s oya yubi sedai, the “thumb generation”
6. Diversity
Mess Rules!
“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
“Diversity defines the health and wealth of nations in a new
century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth.
Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs
economic growth and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
CM Prof Richard Florida on
“Creative Capital”: “You cannot get a technologically
innovative place unless it’s open to weirdness,
eccentricity and difference.”
Source: New York Times/06.01.2002
“Expose yourself to the best things humans have done and then try to bring those things
into what you are doing.”
Steve Jobs, on the eclectic nature of the teams he concocts; people of
“extraordinary tastes” with “intriguing backgrounds”
“Capitalism and the conditions for creating wealth have changed in ways that play to the strengths of hybrid
individuals, organizations and nations. And those that wish to profit from changing economic conditions must view hybridity as their first and best option. This bold
claim warrants an explanation. The ability to apply knowledge to new situations is the most valued
currency in today’s economy. Highly creative people … are misfits on some level. They tend to question
accepted views and consider contradictory ones. This appreciation defines the mongrel mentality. Strangers
instinctively question things that natives take for granted. Many things strike them as odd or stupid. …”
G. Pascal Zachary, The Global Me
7. Women
Born to Lead!
“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
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
“Guys want to put everybody in their hierarchical place. Like, should I have more
respect for you, or are you somebody that’s south
of me?”Paul Biondi, Mercer Consultants [from It’s Not Business, It’s Personal, Ronna Lichtenberg]
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
“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-
first-century economic community are going to need the natural
talents of women.”Helen Fisher, The First Sex: The Natural Talents of
Women and How They Are Changing the World
“American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one
organization and one country from another will be its use of human
resources. Today human resource utilization is not only a matter of social
justice but a bottom-line issue.”
Judy Rosener, America’s Competitive Secret
“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
“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
“Thank you”
17 Men: 84 Women: 19
Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team
“In a lot of countries of the world, it would be very difficult for a woman to
be a good CEO. … I have a responsibility to do the best we can for
shareholders.” * **
*Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face
… to Margaret Thatcher or Carly Fiorina? (I would.)
Okay, you think I’ve gone tooooo far.
How about this: DO ANY OF YOU SUFFER
FROM TOO MUCH TALENT?
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
Opportunity!
U.S. G.B. E.U. Ja.
M.Mgt. 41% 29% 18% 6%
T.Mgt. 4% 3% 2% <1%
Peak Partic. Age 45 22 27 19
% Coll. Stud. 52% 50% 48% 26%
Source: Judy Rosener, America’s Competitive Secret
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
Read This!
“Winning the Talent War for Women: Sometimes It
Takes a Revolution” Douglas McCracken, HBR [11-12/2000]
“Deloitte was doing a great job of hiring high-performing women; in fact, women often earned
higher performance ratings than men in their first years with the firm. Yet the percentage of women
decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male-dominated culture and found them wanting.
Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched
professions.”
Douglas McCracken, “Winning the Talent War for Women” [HBR]
“The process of assigning plum accounts was largely unexamined. …
Male partners made assumptions: ‘I wouldn’t put her on that kind of
company because it’s a tough manufacturing environment.’ ‘That
client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ”
Douglas McCracken, “Winning the Talent War for Women” [HBR]
“Would Congress [the Boardroom] be a different place if half the members
were women?”
From Sex and Power, Susan Estrich
8. Weird
The Cracked Ones Let in the Light!
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
“Are there enough weird people in
the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)
“A great idea always comes from one person’s
mind, someone who is, by definition, local. If you place 10
people in Brussels to conceive a European [ad/marketing]
campaign, you’ll get nothing.”Source: Jean-Marie Dru, Disruption
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)
“The A students work
for the B students. The
C students run the
business. The D students dedicate the buildings.” —Assertion to Kinko’s founder
Paul Orfalea from his Mom (Fortune/05.13.02)
“Most good ideas are born out of a little sketch. [They] probably don’t occur when everybody is sitting around
a table, but rather when you’re having something to
eat or having a talk in a bar.”—Adrian Caddy, Imagination
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
10. Leading Genius
We are all unique!
Beware Lurking HR Types … One size
NEVER fits all. One size fits one. Period.
48 Players = 48 Projects =
48 different success measures.
MantraM3
Talent = Brand
What’s your company’s …
EVP?Employee Value Proposition, per Ed
Michaels et al., The War for Talent
EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
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
“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”
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
First Steps
Make a list of the traits you really want to unearth. (TP &
“sense of humor;” GR & jaywalking.)
Promote for TDS/Talent Development Skills.
Work up an EVP.
ADDENDA: Tom Peters’
The
Talent50
The Talent50
1. People first!2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added.4. Talent “excellence” in every part of the organization.5. P.O.T./Pursuit Of Talent = Obsession.6. HR sits at The Head Table.7. HR is “cool.”
The Talent50
8. Re-name “HR.” (Talent Department, Center of Talent Excellence)9. There’s an HR Strategy10. There is a FORMAL Recruitment Strategy.11. There is a FORMAL Leadership Development Strategy.12. There is a “world class” Leadership Development Center.13. There is a FORMAL-STRATEGIC HR Review Process.14. The “Top100,” and every unit’s Top10, are consciously managed.
The Talent50
15. “People/Talent Reviews” are the FIRST reviews.16. HR Strategy = Business Strategy.17. Make it a Cause Worth Signing Up For..
18. Set Sky High Standards.19. Enlist everyone in Challenge Century21.20. Pursue the Best!21. Up or Out.22. Ensure that the Review Process has INTEGRITY.23. Pay!
The Talent50
24. Training I: Train! Train! Train!25. TII: 100% “business people.”26. TIII: 100% Leaders.27. TIV: Boss as Trainer-in-Chief.28. Open Communication I: NO BARRIERS.29. Open Communication II: Share Information. (ALL!)30. Respect!31. INTEGRITY!32. Treat the Whole Individual.
The Talent50
33. Places of “grace.”34. MBWA: The “Rudy Rule.”35. Thank You!36. Promote for “people skills.” (ALL ELSE IS SECONDARY.)37. Honor youth.38. Early leadership assignments.39. Fast Tracking is the norm.40. Create a System of Mentoring.
The Talent50
41. Diversity!42. Diversity starts on the Board of Directors.43. WOMEN RULE.44. Weird Wins.45. We are all unique. 46. Bosses “win people over.”47. GOAL: Adventures of Mutual Discovery.48. Foster Independence.49. Enthusiasm!
The Talent50
50. Talent = Brand.
VII. NEW BUSINESS: (NEW) BRAND INSIDE RULES
Message2002 …
BI > BO
19. THINK WEIRD … the HVA/
High Value Added Bedrock.
The Cortez Strategy!
THINK WEIRD: The High Standard
Deviation Enterprise.
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
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
“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President,
Bentley College
“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing.
Companies should be idea-led and consumer-
informed.”Doug Atkin, partner, Merkley Newman Harty
“The future has already happened. It’s
just not evenly distributed.”
Adrian Slywotzky
“Our strategies must be tied to leading edge
customers on the attack. If we focus on the defensive
customers, we will also become defensive.”
John Roth, CEO, Nortel
“I made a note. I’m going after
[PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt.
Things are going too well.”
Sales Exec, high-tech superstar
!
W.I.W?
20 of 267 of top 10*
*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10
categories. (The “billion-dollar” problem.)
Source: Advertising Age 01.21.2002/BofA Securities
Primary Obstacles to “Marketing-driven Change”
1. Fear of “cannibalism.”2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.”3.Creating “sustainable advantage.” Source: John-Marie Dru, Disruption
Account planning has become “focus group balloting.”
—Lee Clow
“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo
to create an unsustainable series of competitive advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable
advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the
only level of competition.”
Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering
“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative
and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is
taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice
president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist
thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is
Marketing Not Working?”
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are
prescribed, and experts believe genetic differences are part of the reason. The
technology for genetic testing is now in use. But the technique threatens to be so disruptive to the
business of big drug companies – it could limit the market for some of their blockbuster
products – that many of them are resisting its widespread use.”
The Wall Street Journal (06.18.2001)
“Generally, disruptive technologies underperform
established products in mainstream markets. But they have other features that a few
fringe (and generally new) customers value.”
Clayton Christensen, The Innovator’s Dilemma
“Sony is the epitome of discontinuity. It sees all its competitors’ accomplishments
merely as conventions to be overturned.”
Source: Jean-Marie Dru, Disruption
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
Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
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
“Enormous sums of money are invested to reduce cycle time, improve quality,
reengineer … Much of this money is simply wasted. The waste is due to companies’
inability to develop wide-angle vision and tap into the … power of the edge.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
“Corporate consciousness is predictably centered around the
mainstream. The best customers, biggest competitors, and model
employees are almost invariably the focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
WE BECOME WHO WE
HANG WITH!
Message: TAKE SOMEONE NEW & WEIRD TO LUNCH
TODAY OR TOMORROW. [Inundate yourself with weird.]
Big Idea/s
V.C. GM
PortfolioRoster
?????“Come up with three
‘Crazy Ideas,’ one of which might
work.”
Fr Timothy Radcliffe, Master of the Dominicans,
to his friars
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
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)
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)
Innovation Source No. 1*:
PPPs/Personally Pissed-off
People
“Branson started Virgin Atlantic because flying other airlines was
so dreadful.” —Fortune/05.13.2002
*And there is no No. 2!
“As Francois Dalle, the chairman of L’Oreal, puts it, the
planner must … catch what is barely beginning.”
Source: Jean-Marie Dru, Disruption
Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer Customers & Alliance Partners [Measure the Portfolio’s S.D.]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects [F2F & K2K]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Failures]
Re-enforce a “Culture of Disrespect”/Piracy
Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/PassionatePiracy
Button-down Org H.S.D.E. .
• Acquire for market share• Suck up to biggest customers• Pursue “strategic vendors”• Bigger is better• Accept assignments as given• Hire 4.0s from “top schools”• Promote when they’ve “paid
their dues”• Appoint a “prestigious” board
• Hang out with my pals• R.A.F.• Be “professional” at all
times/Honor thine elders
• Acquire for innovation• Partner with cool customers• Seek out pioneering vendors• Break it up … to refresh• Reframe all tasks to innovate• Hire “intriguing,” wherever• Promote tomorrow if the work
product is weird and WOW• Appoint an interesting,
headstrong board• Take a freak to lunch today• F.F.F.• Stay loose, stay cool/The hell
with thine elders
?????: Get better organized to do good
workvs.
Get better disorganized to do great work
Big Idea/s
V.C. GM
PortfolioRoster
20. Brand Inside
Summary: The 10 Basics
Message2002 …
BI > BO
The Brand Inside10BI1. The Execution Imperative: An “Action Culture”BI2. Cherish FailuresBI3. Dent the Universe: WOW Projects/BHAGsBI4. “Tell Me a Story”: Demo ManiaBI5. Cut the Crap: WebWorld = ALLBI6. “Beautiful” SystemsBI7. The Modified Basis for Value Added: The New “Brand Inside Warriors”BI8. Talent TimeBI9. The “HSDE”: Weird Begets WeirdBI10. A Brand New/Brand You World
21. Tomorrow’s Organizations …
Itinerant Potential Machines.
New Organizational World: Shifts of Emphasis
Staffing Fat ThinOrganization Vertical HorizontalWorkforce Homogeneity DiversityPower Source Status/Command Rights Expertise/RelationshipsLoyalty Company ProjectCareer Asset Organizational Capital Reputational Capital
Source: “The Workforce of the Future,” IHRIM Journal (12.2000)
TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to “make their
bones” in “the revolution.”Love the new technologies. Well rewarded. Don’t plan to
be around 10 years from now.
TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often
needed). “We aim to change the world, and we need gifted colleagues—who well may
not be on our payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT.
Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180
degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME
HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS
AND PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?”
Appreciate “market creation” as much as or more than “market share growth.” ARE
INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS,
AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD,
FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Case. Etc.)
ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A
SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER.
Including vendors and consultants and … especially … PIONEERING CUSTOMERS …
who will “pull us into the future.”
TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all
outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share
this (radical) vision.
POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing
things.”
VIII. NEW BUSINESS. NEW
BEDROCK. (Or: Upending The Big 3.)
22. Brand Talent+:
Addressing the Education
Fiasco
“At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.”
Richard Rosecrance, The Rise of the Virtual State
FES/NOV2001: New Work. New Education.
The Twain Must Meet.
TP Mood
Anger.Despair.
Hopelessness.
Losing the War to Bismarck (and Rockefeller)
J. D. Rockefeller’s General Education Board
(1906): “In our dreams people yield themselves with perfect docility to our
molding hands. … The task is simple. We will organize children and teach
them in a perfect way the things their fathers and mothers are doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor
grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a
state requirement for demonstrating ‘grade-level motor
skills.’ ”Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND
GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out
of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids
raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:
Every school I visited was participating in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
An Unnatural Way to “Learn”
Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in
featureless rooms … sort children into rigid categories by the use of fantastic measures such as
age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving
them of private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist that every moment of time be filled with low-
level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
Doing Stuff that Matters!
“During the first years of life, youngsters all over
the world master a breathtaking array of
competences with little formal tutelage.”
Howard Gardner, The Unschooled Mind
The Learner’s Manifesto
The brain is always learning.Learning does not require coercion.
Learning must be meaningful.Learning is incidental.
Learning is collaborative.The consequences of worthwhile learning
are obvious.Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
“Really bright kids who just needed to get excited” —teacher,
Oakley School
Tom’s Edu3M
Manifesto**Manifesto for Education in the 3rd Millennium
Education3MLearning is a normal state.Children are learnavores.
Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]
We learn at different rates.We learn in different ways.
Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real
world” standards.
Education3M
We learn most/fastest/most completely when we are passionate about what we are learning and it
matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/
Learning by Internship.Classrooms are abnormal places.
We need changes of pace. [Japanese recesses after each class.]
International test scores are not correlated with hours-per-year in class.
Big classes are slightly problematic. Big schools suck. Period.
Education3M
“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]
U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get to know kids as individuals.
Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3M
Our toughest “learning achievement”—mastering our native language—does not
require schools, or even competent parents. [It does require a desperate need-to-know.]
Great teachers are great learners, not imparters-of-knowledge.
Great teachers ask great questions—that launch kids on lifelong quests.
The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly
sophisticated questions—just ask a ski instructor or neurosurgeon.
Education3M
Most schools spend most of their time setting up contexts in which kids learn not to like
particular subjects. [Evidence shows that such anti-learning sticks!]
Vigorous exploration is normal … until you are incarcerated in a school.
“Bite size” education-learning is neither education nor learning.
Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3M
The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the
wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”
Schools of “education” should by and large have their charters revoked.
Education3M
Stability is dead; “education” must therefore “educate” for an unknowable,
ambiguous, changing future; thence, learning to learn & change is far more
important than mastery of a static body of “facts.”
“Education” must “develop in youth the capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]
“The boys who made the best ‘Grotties’ usually
turned out to be nonentities later; boys who hated
Groton did much better.”FDR biographer John Gunther (quoted in Whoever Makes the
Most Mistakes Wins, Richard Farson & Ralph Keyes)
“Fail . Forward.
Fast.”High Tech CEO, Pennsylvania
Read This!
Richard Farson & Ralph Keyes: Whoever Makes the Most
Mistakes Wins: The Paradox of Innovation
Ye gads: “Thomas Stanley has not only found no correlation between success in school and an
ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-
related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.
Yet the success-failure standards of most schools penalized risk takers. Most educational
systems reward those who play it safe. As a result, those who do well in school find it hard to
take risks later on.”Richard Farson & Ralph Keyes, Whoever Who Makes the Most Mistakes Wins
23. Revolution
Required: The Healthcare
Mess.
“Parents, doctors, stockbrokers, even military leaders are starting to
lose the authority they once had. There are all these roles premised on access to privileged information. …
What we are witnessing is a collapse of that advantage,
prestige and authority.”Michael Lewis, next
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Amen!
“The Age of the
Never Satisfied Customer”
Regis McKenna
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.”
“One in Four Internet Users Seek Religious
Information”—Reuters
(12.24.2001) (“God trumps money, sex.”)
Impact #1:
Healthcare
HealthCare2001
Consumerism X Demographics X
IS/Internet X Info Consolidators X Genetics & Devices
= YIKES!
1. Consumerism (Patient-
centric Healthcare)
“A seismic shift is underway in healthcare. The Internet is
delivering vast knowledge and new choices to consumers—raising their
expectations and, in many cases, handing them the controls.
[Healthcare] consumers are driving radical, fundamental change.”
Deloitte Research, “Winning the Loyalty of the eHealth Consumer”
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.”
Consumer Imperatives
ChoiceControl (Self-care, Self-management)
Shared Medical Decision-makingCustomer Service
InformationBranding
Source: Institute for the Future
“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention. Info availability (disease, health, docs,
support groups, outcomes). Self-care (chronic disease). High expectations (genetics, etc.). Boomers (see below). …
“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00
“He shook me up. He put his hand on my shoulder, and simply said,
‘Old friend, you have got to take charge of your own medical care.’ ”Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal, following Jordan’s cancer diagnosis)
2. Demographics: The BOOMERS
Reach 55!
Boomer World
“From jogging to plastic surgery, from vegetarian diets
to Viagra, they are fighting to preserve their youth and
defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in charge!” (4) “We’ll take no
guff from anyone.” (5) “We
know the emperor has no clothes.”
3. The IS/Web REVOLUTION
“We’re in the Internet age, and the average
patient can’t email their doctor.”
Donald Berwick, Harvard Med School
“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)
“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful computer technology and other
modern information-based systems we could make a
revitalized, leaner military force that is designed to outsee,
outmaneuver and outfight any foe.” --Bill Owens, Lifting the Fog of War
“Without being disrespectful, I consider the U.S. healthcare delivery system the largest cottage industry in
the world. There are virtually no performance measurements
and no standards. Trying to measure performance … is the next
revolution in healthcare.”Richard Huber, former CEO, Aetna
“As unsettling as the prevalence of inappropriate care is the enormous amount of
what can only be called ignorant care. A surprising 85% of everyday medical
treatments have never been scientifically validated. … For instance, when family practitioners in Washington were queried about treating a simple urinary tract
infection, 82 physicians came up with an extraordinary 137 strategies.”
Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson
“In health care,
geography is destiny.”
Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age,
Michael Millenson
Geography Is Destiny
E.g.: Ft. Myers 4X Manhattan—back surgery. Newark 2X New Haven—
prostatectomy. Rapid City SD 34X Elyria OH—breast-conserving surgery. VT, ME, IA: 3X differences in hysterectomy by age 70; 8X tonsillectomy; 4X prostatectomy
(10X Baton Rouge vs. Binghampton). Breast cancer screening: 4X NE, FL, MI
vs. SE, SW. (Source: various)
Geography Is Destiny
“Often all one must do to acquire a disease is to enter a country where a disease is
recognized—leaving the country will either
cure the malady or turn it into something else. … Blood pressure considered treatably high in the United States might be considered normal in England; and the low blood pressure treated with 85 drugs as well as hydrotherapy and spa
treatments in Germany would entitle its sufferer to lower life insurance rates in the
United States.” – Lynn Payer, Medicine & Culture
“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good intentions and good training lead automatically
to good results. Providers remain more comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the demands of the information age.”
Michael Millenson, Demanding Medical Excellence
CDC 1998: 90,000 killed
and 2,000,000 injured from nosocomial
[hospital-caused] drug errors & infections
“Quality of care is the problem, not managed care.”
Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)
RAND (1998): 50%, appropriate preventive care. 60%,
recommended treatment, per medical studies, for chronic
conditions. 20%, chronic care treatment that is wrong.
30% acute care treatment that is wrong.
“In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to
calculate medication doses. Eight out of 10 made calculation mistakes at
least 10% of the time, while four out of 10 made mistakes 30 % of the
time.”Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
The EMS Myth
“Speed has never saved anybody’s life. Period.”—W.H.
Leonard, Medical Transportation Insurance Professionals
Source: USA Today (03.21.02)
1,000,000 “serious
medication errors per year” … “illegible handwriting, misplaced decimal points, and missed drug
interactions and allergies.”
Source: Wall Street Journal/ Institute of Medicine
Answer: (1) Physician order-entry system, (2)
stick to treatment guidelines for high-risk
patients, (3) adequate ICU staffing.
The perils/costs of folk wisdom:
Pills vs. IV/$100. Per use.
“Patient by patient, problem by problem—drug reactions, hospital
caused infections—Salt Lake City’s LDS Hospital has attacked treatment-
caused injuries and deaths. One of the secrets of LDS’s success is a custom-
built clinical computer system that may serve as a national model for how
to save patient lives.”Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
The VHA gets it! E.g.: Laptop at bedside calls up patient e-records from one of 1,300 hospitals. Bar-coded wristband confirms meds. National Center for Patient Safety in Ann Arbor. Docs and researchers
discuss optimal treatment regimens—research center in Durham NC. Doc measures & guidelines; e.g.,
pneumonia vaccinations from 50% to 84%. Blame-free system, modeled after airlines. “What’s needed in the U.S. is nothing short of a medical revolution and
the VHA has gone further than most any other organization to revamp its culture and systems.”—
Rand/Source:WSJ 12.10.2001
“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.”—David Veillette, CEO. Indiana Heart
Hospital (Healthleaders/12.2002)
“When a plane crashes, they ask, ‘What
happened?’ In medicine they ask: ‘Whose fault was it?’ ”—James Bagian, M.D. &
former astronaut, now working with the VHA.
Winning By Acknowledging Failures
Wernher Von Braun, the Redstone missile engineer who “confessed” &
the bottle of champagne. Award to the sailor on the Carl Vinson—for
reporting the lost tool. Amy Edmonson & the successful nursing units with the highest reported adverse drug events.
Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected
4. Information Consolidators: The Network Maestros
“America has twice as many hospitals and physicians as
it needs.”Med Inc., Sandy Lutz, Woodrin Grossman
& John Bigalke
Specialty!
“Without having nearly the infrastructure costs or the labor costs that a larger organization
has to deal with, we can be more profitable. We can turn patients
quicker, and we can have shorter lengths of stay with equal to or
better outcomes.”—David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002)
“The future of hospitals is murky. A combination of technological advances,
managed care, and changes in Medicare reimbursement policy
means that the underlying demand for inpatient services
will continue to fall.”Institute for the Future
“Virtual health care webs force providers to focus on their areas of excellence and to
invest in areas where they can generate a sustainable
competitive advantage.”
Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide
WebMD (or heirs
& assigns)
5. Genetics & Devices
“Recognizing that a single misspelled gene means the difference
between being poisoned and being cured was the
first victory for the new science of pharmacogenetics.”
Newsweek (06.25.01)
Genetic data: 2X every 6 months.
Source: FT, 11.27.2001
“Pharmacogenomics could
fundamentally change the nature of drug discovery and marketing,
rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and
money to craft a single medicine with mass-market appeal.”
The Industry Standard (05.28.01)
E.g., Genentech’s Herceptin, useful in 25% of advanced breast cancer cases.
Would probably have been uneconomic if subjected to 9X
patients in phase III clinical trials.
Source: FT (11.27.01)
Sequenom/David Ewing Duncan/Wired11.02
“Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification
process.” “This, I’m told, is the first time a healthy human has ever been screened for the
full gamut of genetic-disease markers.” “On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests.” “You can’t look at humanity separate from machines; we’re so intertwined we’re
almost the same species, and the difference is getting smaller.”
Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-
guided munitions, and it marks a sea change for the industry. The implications for existing
business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences, PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are
prescribed, and experts believe genetic differences are part of the reason. The
technology for genetic testing is now in use. But the technique threatens to be so disruptive to the
business of big drug companies – it could limit the market for some of their blockbuster
products – that many of them are resisting its widespread use.”
The Wall Street Journal (06.18.2001)
Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100
“survivors” underperformed the
market by 20%; just 2 (2%), GE & Kodak, outperformed the market from
1917 to 1987.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
Biotechs: Amgen, Genentech, Biogen, Genzyme, Celltech,
ImClone Systems. Bioinformatics: Accelrys, Cognia, Double Twist,
IBM Lifesciences, NetGenics, SAS Institute.
“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the
operating table. That day may come sooner than you think.”
Newsweek (06.25.01)
“There is no question in my mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-
bypass surgery
Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 30M-70M uninsured. 90K killed and
2M injured p.a. in hospitals. 85% treatments unproven. Cure depends on
locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS
primitive. Accountability & measurement nil. And everybody’s mad and feels powerless: docs, patients, nurses,
insurers, employers, hospitals administrators and staff.
Message: (1) An unparalleled time
for imagination and bold action. (2) A time of unprecedented
opportunities. (3) A time
of unprecedented risk.
HealthCare21
HealthCare21: 21 Ideas for Century211. Hospitals kill people. (And many of those they don’t kill, they wound.) (And they deny it.) (ERRORS RULE!) And: Hustling ambulances kill pedestrians—and don’t save patients.2. Doctors are spoiled brats—who don’t like measurements. Or any form of “interference.” Docs are also cover-up artists. The REAL Hippocratic Oath: “DON’T RAT ON A FELLOW DOC”. 3. Most prescription drugs don’t work—for a PARTICULAR patient. Current drugs = Blunderbusses.4. Think … WELLNESS. Think … PREVENTION.5. THERE IS LITTLE “SCIENCE” IN “MEDICINE.” (See state to state variations … country to country variations … the general lack of agreed upon treatments.)6. You could save thousands of lives (think Schlindler)—if you just outlawed handwritten prescriptions.7. “Detailers” will disappear … when GenX docs arrive.
HealthCare21 (Cont.)8. IS/IT in hospitals is sub-primitive (despite enormous expenditures).9. Systemic IS/IT is worse—links between docs, insurers, providers, patients.10. ELECTRONIC MEDICAL RECORDS …TO UNIFORM STANDARDS. (NOW.) (PLEASE.) 11. THE WEB WILL LIBERATE. (Info = Power.) (BELIEVE IT.) 12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e CONTROL. NOW. “LEADERSHIP” OF AGING PROCESS.)13. “Drug Discovery” processes at Big Pharma are … hopelessly over-complicated. (???: Bye Bye … Big Pharma.)14. 90% of the “healthcare fix”: HARVEST THE LOW-HANGING FRUIT. “They” are … NOT … the Enemy. “I have seen the enemy … and it am me.” Damn it.
HealthCare21 (Cont.)15. The number of U.S. un-insured is the nation’s #1 disgrace. That said, insured “consumers” are spoiled brats. They/we/me act as if healthcare were a free good … and believe that an incipient hangnail calls for at least a CAT scan … or two. ANSWER: MAKE US FEEL THE PAIN.
16. Genetic engineering & biotech change … EVERYTHING. (Within 15 years.)17. New Medical Devices change … EVERYTHING. (Within 15 years.)18. IS/IT changes … EVERYTHING. (Within 10 years.)19. New Docs change … EVERYTHING. (Within 10 years.)20. New Patients change … EVERYTHING. (Within 5 years.)
* *
HealthCare21 (Cont.)
21. ALL THIS = ENORMOUS OPPORTUNITY. The
Opportunity of Several Lifetimes. (For the Bold & Brave.) H’Care WILL be … TOTALLY … re-invented in the next two decades. (And, hey, it is our largest “industry.”)
24. RevGov: Re-inventing Government.
WE NEED …
IDEAS!
Uncertainty: We don’t know when things will get back
to normal.
Ambiguity: We no longer know what “normal”
means.
BMcC: (1) Hierarchy vs. “Network organization.” (2)
NWO = “Doctrine as center of gravity”/source of motivation;
distributed support & decision-making;largely self-organizing; “outside the military sphere.”
“Our military structure today is essentially one
developed and designed by Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“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)
From: Weapon v. Weapon
To: Org structure v. Org structure
Ideas > Leadership
NO: “Good gov’t”
YES: EFFECTIVE Gov’t (in altered/ambiguous
times)
A Plea for “virtual
[RESPONSIVE] government”
Agile.
WALLS MUST FALL!
The W.O.G. (Work-of-
Government): Insta/ Targeted
WPTs (WOW (B.H.A.G.)
Project Teams (with
clout) )
Experiments rule!
Failures rule!
Talent matters!
New Heroes/Hall of Fame
IS/IT to the Max!
Streamlined
procurement (esp. IS/IT)
Case: Bill Owens … Lifting the Fog
of War
“The 1990s was a decade of multiple revolutions—political, economic, technological—that
changed so thoroughly the way we live that the past no longer seems a good guide to the future (in fact the past seems precisely the wrong
guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the military—in a way that could
reinvigorate American political, diplomatic and economic leadership in the world for decades to
come.” –Bill Owens, Lifting the Fog of War
“Our military is very good at doing things as they are supposed to be done, but it is not always good at changing the way things ought to be done. Highly
professional militaries can be very good at maintaining the institution’s traditions, mores and
cultures in the face of rapid and important change. … Equating professionalism with automatically defending the status quo can be disastrous.
This is the mindset that drives service loyalties toward narrow parochialism, and congeals organizations into brittle shells. We end up
ignoring opportunities that could actually offer higher military effectiveness.” –Bill Owens,
Lifting the Fog of War
“How dare you. If you don’t support us, our opponents will take
advantage and use this to cut the force.” –CNO staffer
[Flag officer] to Bill Owens, 6th Fleet Commander
“Mike [Boorda’s] self-avowed priority was to preserve and protect the size, budget and
structure of the U.S. Navy—his Navy—irrespective of any other consideration—
because he deeply believed that the Navy was the core of America’s military capability. My
view over the years had shifted toward the conviction that we in the Navy need to implement major changes in order to
become more joint—to work better and more closely with the other services.”
–Bill Owens, Lifting the Fog of War
“Many flaws remained—flaws not from poor performance, but from an ingrained command
hierarchy and an outmoded concept of war that had taken root during World War II and then during the cold war. Desert Storm was a joint
military operation in name rather than in fact. … The battlefield was divided among service components. …
The fiefdoms existed not only because of tradition, service rivalry and the egos of the commanders; they were also there because of technological limitations.
We did not have the communications capability to do it differently.” –Bill Owens, Lifting the Fog of War
“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful computer technology and other
modern information-based systems we could make a
revitalized, leaner military force that is designed to outsee,
outmaneuver and outfight any foe.” --Bill Owens, Lifting the Fog of War
RMA: (1) Battlespace awareness. (2) C4I.
(Command, control, communications, computers &
intelligence.) (3) Precision force use.
“[The RMA] means creating a synergy in new weapons, sensors and communications that is made
possible by the successful melding of the technological
applications with an information-age military organization.” –Bill Owens,
Lifting the Fog of War
“In the second half of the twentieth century a new society of individuals emerged—a breed of people
unlike any the world has ever seen. Educated, informed, traveled, they work with their brains, not
their bodies. They do not assume that their lives can be patterned after their parents’ or grandparents’.
Throughout human history, the problem of identity was settled in one way—I am my mother’s daughter; I am
my father's son. But in a discontinuous and irreversible break with the past, today’s individuals
seek the experiences and insights that enable them to find the elusive pattern in the stone, the singular
pattern that is ‘me.’” —Shoshana Zuboff & James Maxmin, The Support Economy
“If you don’t like change, you’re going
to like irrelevance even less.” —General Eric
Shinseki, Chief of Staff, U. S. Army
Old: Heavy. Seek direct contact.
New: Stryker brigade. Stealth. Avoid direct contact—“choose
your moment.” “Depend heavily on information technology, and
enhanced intelligence, surveillance and reconnaissance capabilities.”
Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)
“Substituting information for armor is a disconcerting notion to a tank soldier. … Soldiers will learn that battle field awareness can be as comforting as armor.”
Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)
From “Tank” to Future Combat System (e.g., “virtual tank”)
Analogous to switch from “circuit breaker makers” to GE Industrial
Systems, or “guys in brown trucks” to “Let Brown do it.”
Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)
VIII. NEW BUSINESS.
NEW MARKETS.
25. Trends I:
Women Roar.
Women & the Marketspace.
?????????
Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51% Cars … 60% (90%)
All consumer purchases … 83% Bank Account … 89%
Health Care … 80%
????
80%
Riding Lawnmowers
2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
1970-1998
Men’s median income: +0.6%Women’s median income: + 63%
Source: Martha Barletta, Marketing to Women
$4.8T > Japan
9M/27.5M/$3.6T > Germany
Business Purchasing Power
Purchasing mgrs. & agents: 51%HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
Women-owned Bus.
U.S. employees > F500 employees worldwide
Source: Martha Barletta, Marketing to Women
2000-2010
55-64: 48%; 25-54: 2%65+/2001: M, 14.6M;
F, 20.5M
Source: Martha Barletta, Marketing to Women
New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!*[* No shit!]
91% women: ADVERTISERS DON’T
UNDERSTAND US. (58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
Men: Individual perspective. “Core unit is ‘me.’ ”
Pride in self-reliance.
Women: Group perspective. “Core unit is ‘we.’ ” Pride in team
accomplishment.
Source: Martha Barletta, Marketing to Women
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.”
“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!)
“Shopping: A Guy’s Nightmare or a Girl’s Dream Come True?”
“Buy it and be gone”vs.
“Hang out and enjoy the experience”
Source: The Charleston [WV] Gazette/06.22.2002
Antaun Hughes, Capital High School,
on M-F shopping habits: “Women enjoy going through the
actual process of everything, while guys like to get straight to the point.”
Source: The Charleston [WV] Gazette
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done indicates that women really care about the relationship with their
vendor.”
Robin Sternbergh/ IBM
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)
Read This: Barbara & Allan Pease’s
Why Men Don’t Listen & Women Can’t Read Maps
“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
“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
“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
“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
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
Sensitivity to differences: Twice as many card stacks.
More “contextual,” “holistic.”
“People powered”: Age 3 days, baby girls 2X eye contact.
Source: Martha Barletta, Marketing to Women
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps: Women love to
talk. Men talk silently to themselves. Women think aloud. Women talk, men
feel nagged. Women multitask. Women are indirect. Men are direct. Women talk
emotively, men are literal. Men listen like statues. Boys like things, girls like
people. Boys compete, girls cooperate. Men hate to be wrong. Men hide
their emotions.
“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
We Really … Don’t Get It!
Review of “Unfaithful”: “ … the latest entry in the category of
male directors’ clueless fantasies concerning what
women fantasize about in their nonexistent free time.”
Source: Julie Iovine, NYT (05.19.2002)
Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave
their mate. WOMEN: women controlled by the men in their lives,
who would rather be dead than oppressed.
Source: Judy Rosener, America’s Competitive Secret
[“The Hollywood scripts that men write tend to be direct and
linear, while women’s compositions have many
conflicts, many climaxes, and many endings.”
Helen Fisher, The First Sex: The Natural Talents of Women and How They Are
Changing the World]
“Women speak and hear a language of connection and intimacy, and men
speak and hear a language of status and independence. Men communicate to obtain information, establish their
status, and show independence. Women communicate to create
relationships, encourage interaction, and exchange feelings.”
Judy Rosener, America’s Competitive Secret
[“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female
friends. When days go by without that connection, I feel
like a radio playing in an empty room.”
Anna Quindlen]
Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that cohere.*
TP/Furniture: “Tech Specs” vs. “Soul.” **
*Redwood (UK)**High Point furniture mart (04.2002)
Initiate Purchase
Men: Study “facts & features.”
Women: Ask lots of people for input.
Source: Martha Barletta, Marketing to Women
Storytelling: Men start with the headline.
Women start with the context.
Source: Martha Barletta, Marketing to Women
Tomboy Tools. E.g.:
smaller, lighter in weight. Tupperware “party” model.
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
What If …
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the
female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment. Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her intelligence and ability.”
EVEolution
Lowe’s …
Gets it. 1989:
13%/“lumber shop” … 2002: >50%
Yes!: “Crest Spinoff Targets Women”—cover story,
Ad Age/06.03.02
Crest Rejuvenating Effects. “Chicks in charge” team. $50M launch. Packaging.
Taste. Features.
“Mattel Sees Untapped Market for Blocks: Little Girls”—Headline,
WSJ/04.06.02
“Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello
—with interconnecting plastic squares, balls, triangles, squiggles,
flowers and sticks, in pastel colors and with rounded corners—will go beyond
Lego’s linear play patterns.”
“Women don’t buy
brands. They join them.”
EVEolution
Not!“Year of the
Woman”
Enterprise Reinvention!
RecruitingHiring/Rewarding/Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
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
“If we are single, they say we couldn’t catch a man. If we are
married, they say we are neglecting him. If we are divorced,
they say we couldn’t keep him. If we are widowed, they say we
killed him.”Kathleen Brown, on the joys of female political candidacy
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!”
Psssst! Wanna see my “porn” collection?
Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team
“In a lot of countries of the world, it would be very difficult for a woman to
be a good CEO. … I have a responsibility to do the best we can for
shareholders.” * **
*Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face
… to Margaret Thatcher or Carly Fiorina? (I would.)
Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ?? (94% = 272)
0
“Please … just
one couch or
chair where my feet hit the ground!” —Owner,
5 furniture stores, UK
Stupid!
Stupid: “Amazing, now that I think about it. A bunch of
guys --developers, architects, contractors,
engineers, bankers--sitting around designing shopping centers. And the ‘end users’
will be overwhelmingly women!”
Instructions: 1. Purchase ticket to symphony … 7:30 p.m. show. 2. Drink three large bottles of water
between 3 p.m. and 7 p.m. 3. X-dress. 4. Wait in queue at
Ladies at Intermission. 5. Realize what total wretches you are. 6. Seize a microphone and
apologize publicly to every woman in the hall.
“Customer is King”: 4,440
“Customer is Queen”: 29
Source: Steve Farber/Google search/04.2002
F.Y.I.
“Women Beat Men at Art of Investing”
Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of
stocks more often; women choose carefully and hold on for the long term)
Purchasing Patterns
Women: Harder to convince; more loyal once convinced.
Men: Snap decision; fickle.
Source: Martha Barletta, Marketing to Women
Investment Club Returns
Women-only clubs 1997 … 17.9%Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
Value Line: Top State* Investment Clubs 2000
8 … All male19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots!
“Why all this focus on women and our lack of investment guts? A far greater problem, it seems to
me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide their mistakes from their wives.”
Source: Newsweek 01.08.01
Notes to the CEO
--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)
--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!
Source: Martha Barletta, Marketing to Women
26. Trends II: Boomer
Bonanza/ Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44, stupid!”
Subject: Marketers & Stupidity
Or is it: “18-44 is stupid,
stupid!”
2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
“The Latest Golden –years Trend: Going Back to College” —Headline,
Newsweek/06.10.02
Member Growth: 1987 – 1997
18 – 34: 26%35 – 49: 63%
50+: 118%Source: IHRSA
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
“Advertisers pay more to reach the kid because they think that once someone hits
middle age he’s too set in his ways to be
susceptible to advertising. … In fact this notion of impressionable kids and hidebound geezers is little more
than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of
youth.”—James Surowiecki (The New Yorker/04.01.2002)
Read This!
Carol Morgan & Doran Levy,
Marketing to the Mindset of Boomers
and Their Elders
“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
“Households headed by someone 40 or older enjoy 91% ($9.7T) of
our population’s net worth. … The mature market is the dominant
market in the U.S. economy, making the majority of
expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders
“The mature market cannot be dismissed as entrenched in its
brand loyalties.” —Carol Morgan &
Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“Focused on assessing the marketplace based on lifetime
value (LTV), marketers may dismiss the mature market as
headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“While the average American age 12 or older watched at least five
movies per year in a theater, those 40 and older were the most
frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-
olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But
who in the fashion industry is currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“Take the Road Less Traveled”—Advertising Age
headline re Sony, upon targeting “Zoomers,” the
neglected 34% of its customers who are
age 50+
Stupid!
“ ‘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
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
Women! Boomers!Design!
The Royal Tenenbaums
“The New Pillow Talk: Specialty Pillows Are Big Sellers as Achy Boomers
Seek Sleep”—WSJ (03.22.2002)
Nice Job Title, Frito-Lay!
Rebeca Johnson, VP—Ethnic and Urban
Marketing
27. Trends III: Green = $$$$$
$
“Of all the ways the company will be judged over the next
decade, none will be greater than our
response to the issue of climate change.”
William Clay FORD Jr.
And #3: GREEN?????: 50% to 36%: Protect Environment >
Economic Growth.
58% to 34%: Protect Plants & Animals > Preserve Private
Property Rights.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered: M, 35%; F, 47%
Source: www.pulse.org & USA Today
Three Most Important Upgrades Home Purchasers Consider
Energy efficiency/83%Kitchen cabinets/66%Indoor air quality/50%
Source: Professional Builder
“The U.S. building and construction industry reinvest only about 1 percent of their revenue in R & D, compared to
10 to 20 times that for cutting edge industries like electronics and
pharmaceuticals. No wonder their techniques and materials are so
antediluvian.” —Paul Hawken et al., Natural Capitalism
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
Women’s [Aging,Green] Market: Why Tough
EncompassingAttitude
CULTURAL!
“Of all the ways the company will be judged over the next
decade, none will be greater than our
response to the issue of climate change.”
William Clay FORD Jr.
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
28. Trends IV: Think Global!
THE EIGHT “RULES”
Rule #1
There’s no such thing as “too small to
be global.”[GET A LIFE.]
Rule #2
If “it” is [truly] good … then it’s good
enough for … THE WORLD.
Rule # 3
When?
Now.
Rule #4
Hang out … vigorously!
Rule #5
Seek Talent!Send Talent!
Message(s) ABB, Shell
ELITE Global CadreGenuinely Global BOARD
Rule #6
Glom onto a [modest-sized] partner … who
loves/ “gets” you!
Rule #7
Tailor!! [But don’t give
away the store.]
Rule #8
Phil Crosby notwithstanding,
you’ll not [likely] “get it right the first time”!
IX. NEW BUSINESS. NEW LEADERSHIP.
29. The Passion
Imperative: The
Leadership50
The Basic Premise.
1. Leadership Is a …
Mutual Discovery Process.
“I don’t know.”
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
The Leadership
Types.
2. Great Leaders on Snorting
Steeds Are Important – but
Great Talent Developers (Type I
Leadership) are the Bedrock of Organizations that Perform Over
the Long Haul.
25/8/53*(*Damn it!)
3. But Then Again, There Are Times When This “Cult of Personality”
(Type II Leadership) Stuff Actually Works!
“A leader is a dealer in hope.”
Napoleon
(+TP’s writing room pics)
4. Find the “Businesspeople”!
(Type III Leadership)
I.P.M. (Inspired Profit
Mechanic)
5. All Organizations
Need the Golden Leadership
Triangle.
The Golden Leadership Triangle: (1) Creator-
Visionary … (2) Talent Fanatic-Mentor-V.C. …
(3) Inspired Profit Mechanic.
6. Leadership Mantra
#1: IT ALL DEPENDS!
Renaissance Men are … a snare, a
myth, a delusion!
7. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky
Anderson—1 season.
The Leadership
Dance.
8. Leaders …
SHOW UP!
P.S. …
Mark McCormack: 5,000 miles for a 5
min. meeting!
9. Leaders … LOVE the
MESS!
“I’m not comfortable unless
I’m uncomfortable.”—Jay Chiat
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
10. Leaders
DO!
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!)
11. Leaders
Re-do.
“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
“If it works, it’s
obsolete.”
—Marshall McLuhan
12. BUT … Leaders
Know When to Wait.
Tex Schramm: The
“too hard” box!
13. Leaders Are …
Optimists.
Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
14. Leaders …
DELIVER!
“Leaders don’t
‘want to’ win.
Leaders ‘need to’ win.”
#49
“It is no use saying ‘We are doing our best.’ You have got to succeed in doing
what is necessary.” —WSC
“When assessing candidates, the first thing I looked for was energy and
enthusiasm for execution. Does she talk about the thrill of getting things
done, the obstacles overcome, the role her people played—or does she keep
wandering back to strategy or philosophy?” —Larry Bossidy,
Honeywell/AlliedSignal, in Execution
15. BUT … Leaders Are
Realists/Leaders Win Through LOGISTICS!
The “Gus Imperative”!
16. Leaders
FOCUS!
“To Don’t ” List
17. Leaders …
Set CLEAR DESIGN SPECS.
Danger: S.I.O. (Strategic
Initiative Overload)
JackWorld/1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
18. Leaders …
Send V-E-R-Y Clear Signals About
Design Specs!
Ridin’ with Roger: “What have you done to
DRAMATICALLY IMPROVE quality in the
last 90 days?”
It’s Relationships,
Stupid.
19. Leaders Trust in
TRUST!
Credibility!
Bonus/TP: $1.00 for “competence.”
$249.00 for “attitude”/ “honesty.”
If It Ain’t Broke … Break It.
20. Leaders …FORGET!/
Leaders … DESTROY!
Cortez!
Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
“WCW Monday Nitro was our top rated show by more than double anything else [and the top rated show on basic cable],
and we dumped it! Can you name another network that dropped its top-rated show? I
don’t know if consumers noticed, but it said everything to our staff.”—Scot Safon,
on the successful reinvention of TNT to embody its new vision, “TNT: We
know drama.”
21. BUT … Leaders
Have to Deliver, So They Worry About “Throwing the Baby Out with the
Bathwater.”
“Damned If You Do, Damned If You Don’t, Just Plain
Damned.”Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)
22. Leaders …
HONOR THE USURPERS.
Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
Leaders know … WE BECOME WHO
WE HANG WITH!
23. Leaders Make [Lotsa] Mistakes
– and MAKE NO BONES ABOUT IT!
“Fail faster. Succeed sooner.”
David Kelley/IDEO
“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)
24. Leaders Make …
BIG MISTAKES!
“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
Create.
25. Leaders Know that
THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW
MARKETS.
No one ever made it into the Business Hall of Fame on a record of
“line extensions.”
“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the
message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,
major consumer goods company
“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
26. Leaders Pursue
DRAMATIC DIFFERENCE!
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 (Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to
5%)
Source: Jump Start Your Business Brain, Doug Hall
26A. Leaders … Make Their Mark /
Leaders … Do Stuff That Matters
“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
Legacy!
Herman Edwards: “I picked up one of those Jets books and I told them, ‘What you do as a football team is your legacy. When you’re 80 years old, what you’ve
done will be in this book and no one can take that away from you. Your grandkids, your kids after that, they will know what you did. It’s about leaving your name in
stone.”
Source: The New York Times (12.31.02)
COL Richard Hallock (to incoming SECDEF James Schlesinger): “You must understand that if you want
to leave a legacy it is vital for you to make a quick decision about what you want the legacy to be …
because after several months you become so caught up in the business of the Pentagon, so overwhelmed,
that it will be too late. Pick a few projects and put the full weight of the office behind them. Guide the
projects. Nurture them. Know from the very beginning that this will be your legacy. Force them
through the bureaucracy.”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
TP’s least favorite term: “Stewardship”*
*I want to have “exploited” resources, not “conserved” resources
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?”
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’?”
Ideas > Leadership
“Today the problem is not how to produce more to sell more.
The fundamental question is that of the product’s right to exist. And it is the designer’s right and duty to question the
legitimacy of the product.”
Philippe Starck
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?”
TP’s least favorite term: “Stewardship”*
*I want to have “exploited” resources, not “conserved” resources
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’?”
NO: “Good gov’t”
YES: EFFECTIVE Gov’t (in altered/ambiguous
times)
“By combining powerful computer technology and other
modern information-based systems we could make a
revitalized, leaner military force that is designed to outsee,
outmaneuver and outfight any foe.” --Bill Owens, Lifting the Fog of War
27. Leaders Push Their
Organizations W-a-y Up the Value-added/
Intellectual Capital Chain
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
28. Leaders
LOVE the New Technology!
100 square feet
29. Needed? Type IV Leadership: Technology
Dreamer-True Believer
The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent
Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True
Believer
Talent.
30. When It Comes to
TALENT … Leaders Always Swing
for the Fences!
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
31. Leaders “Manage” Their
EVP/Internal Brand Promise.
MantraM3
Talent = Brand
32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.
“Diversity defines the health and wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting
the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity,
nourishes the human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
Passion.
33. Leaders …
Out Their
PASSION!
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
“Vision is a love affair with an idea.”—Boyd Clarke & Ron
Crossland, The Leader’s Voice
“A winning attitude takes a lot of hard,
honest work. It begins with an assumption that we do have a choice, we can
make a difference among others and within
ourselves.”—James Cramer, The Greenway
Group & former CEO of the AIA
!
34. Leaders Know: ENTHUSIASM
BEGETS ENTHUSIASM!
BZ: “I am a … Dispenser of Enthusiasm!”
34A. Leaders Are
… in a Hurry
The Urgency Factor: LEADERS … have a distorted
sense of time. (E.g.:
Rummy thinks he asked months ago … it was the day before yesterday.)
35. Leaders Focus on the
SOFT STUFF!
“Soft” Is “Hard”
- ISOE
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.]
“The references were there; the
portfolio was dazzling. But there was no fire, no foot halfway over the starting line eager to sprint down the track to success.”—James Cramer, The Greenway
Group & former CEO of the AIA (on the rejection of a “famous firm”)
The “Job” of Leading.
36. Leaders Know It’s
ALL SALES ALL THE TIME.
TP: If you don’t LOVE SALES … find
another life. (Don’t pretend
you’re a “leader.”) (See TP’s The Project50.)
37. Leaders
LOVE “POLITICS.”
TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend
you’re a “leader.”)
38. But … Leaders Also
Break a Lot of China
If you’re not pissing people off, you’re not making
a difference!
39. Leaders
Give … RESPECT!
“It was much later that I realized Dad’s secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a
bishop or a college president. He was seriously interested in who you were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
40. Leaders Say
“Thank You.”
“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
41. Leaders Are …
Curious.
TP/08.2001: The Three Most Important Letters …
WHY?
42. Leadership Is a …
Performance.
“It is necessary for the President to be the
nation’s No. 1 actor.”
FDR
“You can’t lead a cavalry charge if you think you look funny on a
horse.” —John Peers, President, Logical
Machine Corporation
“Find something small that you can turn
around. If you’re on a 9-game losing streak, you need to start with one great inning.”—Rudy
43. Leaders … Are The Brand
The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-
to-moment actions.
44. Leaders …
Have a GREAT STORY!
Leaders don’t just make products and make decisions.
Leaders make meaning. – John Seeley Brown
Introspection.
45. Leaders …
Enjoy Leading.
“Warren, I know you want to ‘be’
president. But do you want to ‘do’
president?”
“[Bertelsman’s Reinhard] Mohn wasn’t a creative type. What got him juiced was the
art of running an organization and motivating the people who work there.”
—Fortune/05.27.2002
46. Leaders …
KNOW THEMSELVES.
Individuals (would-be leaders) cannot engage in a
liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty
control freaks.)
47. But … Leaders
have MENTORS.
The Gospel According to TP: Upon having the Leadership
Mantle placed upon thine head, thou shalt never hear the unvarnished
truth again!* (*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.)
48. Leaders … Take Breaks.
Zombie!Zombie!Zombie!Zombie!
The End Game.
49. Leaders ???
:
“Hire smart – go bonkers – have grace – make mistakes – love technology – start all
over again.”
“LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES”
50. Leaders Know
WHEN TO LEAVE!
XI. NEW BUSINESS. NEW
RULES.
30. Tom’s
60TIBs**TIB = This I Believe
1. TECHNICOLOR RULES! (Passion Moves Mountains!)2. Audacity Matters!3. Revolution Now!4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!)
6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you can’t take Silicon Valley out of the boy!)7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AIN’T SEEN NOTHIN’ YET!)9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT … OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)
11. “Permanence” Is a Snare & a Delusion. (Forget “Built to Last.” It’s Yesterday’s Idea.)12. Kaizen” (Continuous Improvement) Is … Dangerous.13. DESTRUCTION RULES!14. Forget It! (“Learning” = Easy. “Forgetting” = Nigh on Impossible.) 15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.)
16. Boring Begets Boring. (Cool Begets Cool.)17. Think “Portfolio.” (We’re All V.C.s.)18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism of What They’re Up To.)19. Action … ALWAYS … Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH … INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns!
21. Haste Makes Waste. (SO GO WASTE!)22. Screwups are … the … Mark of Excellence. (“Do It Right the First Time” Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!)24. TALENT TIME! (He/She Who Has the Best “Roster” Rules!)25. Re-do Education. Totally. (FOSTER CREATIVITY … NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)
26. Diversity’s Hour Is Now!27. SHE … Is the Best Leader!28. MARKETING MANTRA: Embrace the “BIG THREE” Demographics. (1) SHE … is the Customer. (For everything.) (2) Rapidly Aging Boomers Have … ALL THE MONEY. (3) Green … Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY … Gets It.) (Mere “Programs” Will Not Suffice.)29. Re-boot Healthcare. (UNDERSTATEMENT.)30. WHAT ARE WE SELLING? “Experiences” & “Solutions” > “Quality” & “Satisfaction.” (The Traditional Value-added Equation Is Being Set on Its Ear.)
31. DESIGN = New Seat of the Soul. 32. Branding Is for … EVERYONE. He Who Has the … BEST STORY … Takes Home the Marbles.33. DRAMATIC DIFFERENCE = Only Difference.34. WORDS/Language Matters … a Lot. (E.g.: Three Hearty Cheers for “Wow”!)35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: “Are You Proud of It?”)
36. eALL. (IS/IT: Half-way = No Way.)37. DREAM … Big! DREAM … Enormous. DREAM … Gargantuan. (These Are XXXL Times.)38. THINK MIKE! (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”)39. There Is Only … ONE BIG ISSUE. Cross- functional Communication.40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF “UN-DUMBING.”)
41. Beautiful Systems Are … BEAUTIFUL.42. The … WHITE-COLLAR REVOLUTION … Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT … OR EXTINCT!44. “Powerlessness” Is a State of Mind! Think: King. Gandhi. De Gaulle.45. Pursue Adventure … in Every Task.
46. EXCELLENCE … Is a State of Mind. (Excellence Takes a Minute.) (No Bull.)47. SHOW UP! (If You Care, You’re There.)48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your “TO DON’T” List.)49. LIFE IS SALES. (The Rest Is Details.)50. Boss Mantra #1: “I DON’T KNOW.” (“I Don’t Know” = Permission to Explore.)
51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (“Manager” = Hurdle Removal Professional.)52. Epitaph from Hell: “He Woulda Done Some Truly Cool Stuff … But His Boss Wouldn’t Let Him.”53. Change Takes However Long You Think It Takes. (Eschew … “Incrementalism.”)54. Respect! (Rule 1: Don’t Belittle!)55. “Thank You” Trumps All!
56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.)57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.)58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.)59. DISPENSE ENTHUSIASM!60. FUN …Is Not a 4-Letter Word. So, too … JOY. (And … GRACE.)
Have you changed
civilization today?Source: HP banner ad
Thank You!