Tom Peters Seminar2001

We Are in a Brawl with No

RulesJohannesburg/23.08.2001

More at … tompeters.comSlides from this seminar;

Master Presentation, for in-depth; annotated Special Presentations

[Women Rule!, Design!, etc.].“Cool Friends” (referenced in seminar).

Discussions re this stuff.Calendar of events.

Lavender text in this file is a link.

Dell’s OptiPlex Facility

Big Job: 6 to 8 hours.(20,000 per day)

Parts Inventory: 2 hours, 100 square feet. (Overall, 5 days vs.

50 to 90 days; target is 2.5 days)

<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, talk april2001

“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

“We are in a

brawl with no rules.”

Paul Allaire

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!)

“It used to be that the big

ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional

Venture Partners)

Message #1: All hell is breaking loose. The current downturn is

irrelevant.

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work I

The Destruction Imperative!

“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

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

older products. This results in a surge of productivity and performance that may take the old technology to unheard of

heights. But in most cases this is a sign of impending death.”

Jim Utterback, Mastering the Dynamics of Innovation

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.

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

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 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)

Message #2: “Good management” is a

millstone in chaotic times. Mind the “gales of

creative destruction.”

Brand Inside

Brand Org: Lean, Linked,

Internet-driven, Virtual

White Collar

Revolution!

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

“A bureaucrat is an expensive

microchip.”Dan Sullivan, consultant and

executive coach

Automation+

75% of what we do: 40 “expert” decision rules!

IBM’s Project eLiza!

“Don’t own nothin’ if you can help it. If you can, rent your

shoes.”F.G.

Message #3: Johannesburg or San Jose CA, the forces unleashed are the same.

Enormous. Fast.

Brand Inside

Brand Work: 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.

Credo: W.W.P.F.

“WORK WORTH PAYING

FOR”

“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!

Message #4: W.W.P.F. or [professional] death.

Brand Inside

The Heart of the Value Creation Revolution:

PSF Unbound!

11 September 2000

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]

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Delphi … Etc. … Etc.

“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

GE’s New Six Sigma Approach

Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s World.Source: Steve Kerr, VP, GE

“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)

Springs

Collections.Flexible sourcing.

Packaging.Merchandising.

Promotion.Design.

Systems & Site mgt.

= Turnkey.

“ ‘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)

eHR*/PCC***All HR on the Web

**Productivity Consulting Center

Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

100% goes on the Web.

Non-awesome is outsourced.

Centers of Excellence are leveraged to the hilt!

Maybe one [or more] of your “PSFs” becomes the tail that wags the

dog called Market Cap????? [E.g.: engineering-

IS-logistics-customer service]

“The e-conomy is one of re-intermediation, where new

technologies make it possible to radically increase complexity and

efficiency with the introduction of new marketplaces. In these markets, value

chains constantly reorganize as the demands of the consumer and

business change.”Thomas Koulopoulos, Delphi Group

Lessons from the bush

(1) Specialization-excellence. (Or death.)

(2) No wasted motion/ no bureaucratic B.S. (I’net does

this.) (3) Hyper-interdependence.

Message #5: WHERE IS YOUR VALUE

ADDED?

Brand Inside

Brand You: Distinct …

or Extinct

“If there is nothing very special about your work, no matter how hard you apply

yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

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

Brand You, Big Time!

I AM AN ARMY OF

ONE

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

Stan Davis & Christopher Meyer, futureWEALTH

[“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

[very much]?

Invent. Reinvent. Repeat.

Source: HP banner ad

Work-Life Balance

Madeleine McGrath & the Suicide

Hotline

Message #6: MESSAGE

2001+: SELF-SUFFICIENCY!

Brand Inside

Redefining the Work

Itself: The WOW Project

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Words: WOW!

Insanely great! BHAG (Big Hairy Audacious Goal).

Make Something Great. Astonish Me. Make It Immortal.

My GOAL: Radicalize Audiences!*

*Hint: These are Radical times!

“Learn not to be careful.”

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

per Harriet Rubin in The Princessa)

Message #7: BHAG or bust!

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

The following slide begins the “Boss-Free Implementation of

Stuff That Matters” Section. The slides in this section are heavily

annotated.

Use Normal or Notes Page View to access the notes.

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

World’s Biggest Waste …

Selling “Up”

THE IDEA: Model F4

Find a Fellow

Freak Faraway

Heart of the Matter

F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.

THE TOOL

Prototyping Mania!

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

willing and able to seriously play. ‘Serious play’ is not an oxymoron;

it is the essence of innovation.”

Michael Schrage, Serious Play

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

“Fail faster. Succeed sooner.”

David Kelley/IDEO

Reframers’ Rules:

Rule 1: Never accept an

assignment as given! (Please.)

Rule 2: You’re never so powerful as when you are “powerless”!

Rule 3: Every “small” project contains the entire

enterprise DNA!

BOTTOM LINE

The Enemy!

Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001

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!

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

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

Message to “scientists”: It AIN’T about the science. It’s

NEVER about the science. It’s ALWAYS

about the PASSION for the IDEA.

Fact: 1000s of PLAUSIBLE drug

candidates. Winners based [mostly] on desire &

tenacity of Project Manager/Team

Sales2001

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.)

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. Thinks 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!

The “Flypaper/Epidemic Strategy”: Trolling for would-be Revolutionary(ies). Age & rank & size of org do not matter/passion rules (Gap’s 27-yr-old; Rajat; OSHA Maine;

Anthem NH). (Hmmmm. Maybe size & rank do matter??) (“I won’t help you get promoted. I will help

you start a revolution/epidemic.”) Help the infected one(s) become “carriers;”

study epidemiology. MBSA.

Message #8: “POWERLESSNESS” IS A LOAD OF BULL!

Brand Inside

Brand Talent: The Great War for Talent

“When land was the productive asset, nations

battled over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD

EACH INITIATIVEE.g.: COO of IKEA to head

international expansion

Ed Michaels, War for Talent (05.17.00)

“We believe companies can increase their market cap 50 percent in 3 years. Steve

Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put

more talented, higher paid managers in charge. He increased

profitability from $25 million to $80 million in 2 years.”

Ed Michaels, War for Talent (05.17.00)

So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,

$3-4M per year. Pay: $135,000 plus $90,000. Net:

$2-3M for $50K.

Source: Ed Michaels et al., The War for Talent, re Georgia-Pacific

“We have transitioned from an asset-based strategy

to a talent-based strategy.”

Jeff Skilling, CEO, Enron

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

What gets measured gets done. What gets

paid for gets done more. What gets paid

a lot for gets done a lot more.

“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

Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

Women’s Strengths: Link [rather than rank] workers; favor interactive-collaborative

leadership style [empowerment > top-down decision making]; sustain fruitful collaborations;

comfortable with sharing information; see redistribution of power as victory, not surrender;

favor multi-dimensional feedback; value interpersonal & technical skills, group &

individual 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

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it

easier to meet new people? Who asks more questions in a conversation? Who is a better

listener? Who has more interest in communication skills? Who is more inclined to get involved?

Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &

Susan Kane-Benson

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

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

Axiom: Never hire anyone without an aberration in their

background!

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

Would Craig Venter (Luciano Benneton)

come to work for us?

“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]

Enron

COO: Louise Kitchen, F, 29; created

EnronOnline as “Skunkworks”

Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

48 Players = 48 Projects =

48 different success measures

Model 24/7: Sports Franchise GM

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.

Why Don’t Most Biz Mgrs. Think This Way?

“Coaching is winning players over.” *

Phil Jackson

*Not: “planning,” “implementing,” “clear communication,” “getting the org chart right.”

Goal of the Year No. 1*: Find-Develop-Mentor

ONE Extraordinary Person.

*CEO, large financial advisory firm, April 2001

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

Message #9: Think JACK. Vision: 0. Talent:

ALL.

Brand Inside

Brand Talent+: The Education Fiasco

“The main crisis in school today is irrelevance.”

Daniel Pink, Free Agent Nation

“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 mass 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 was participating

in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

Losing the War to

Bismarck

“Schools were designed by Horace Mann, E.L. Thorndike, and others to be instruments of the

scientific management of a mass population. Schools are intended to produce, through the

application of formulas, formulaic human beings whose behavior can be predicted and controlled. To a very great extent, schools

succeed in doing this. But in a society that is increasingly fragmented, in which the only genuinely successful people are independent, self-reliant, and

individualistic, the products of school and ‘schooling’ are irrelevant.”

A Different Kind of Teacher, John Taylor Gatto

J. D. Rockefeller’s General Education Board

(1915): “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

“Every time I pass a jailhouse or school, I

feel sorry for he people inside.”

Jimmy Breslin, 07.11.2001, on “summer school” in NYC [“If they haven’t learned in the winter, what are they going to remember from days

when they should be swimming?”]

“The best evidence that our schools are set up to ‘school’ and not be usefully educationally lies in the look of the

rooms where we confine kids. Rooms with no clocks, no telephones, no fax

machines, no stamps, no envelopes, no maps, no directories, no private

space in which to think, no conference tables on which to confer.

Rooms in which there isn’t any real way to contact the outside world where life is going on.”

A Different Kind of Teacher, John Taylor Gatto

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 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 posess some vital secret to which children must surrender their

their active learning time to acquire.”

John Taylor Gatto, A Different Kind of Teacher

Doing Stuff that Matters!

“Education, at best, is ecstatic. At its best, its most unfettered, the moment of learning is a moment of delight. This

essential and obvious truth is demonstrated for us every day by the

baby and the preschool child. … When joy is absent, the effectiveness of the

learning process falls and falls until the human being is operating hesitantly,

grudgingly, fearfully.”

George Leonard, Education and Ecstasy [1968]

“Children learn what makes sense to them; they learn through

the sense of things they want to understand.”

Frank Smith, Insult to Intelligence

“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

“We underrate our brains and our intelligence. Formal education has become such a

complicated, self-conscious, and over-regulated activity that learning is widely regarded as

something difficult that the brain would rather no do. … Such a belief is probably well-founded

if the teachers are referring to their efforts to keep children moving through the instructional

sequences that are prescribed as ‘learning activities’ in school. … We are all capable of

huge and unsuspected learning accomplishments without effort.”

Frank Smith, Insult to Intelligence

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

“Actual content may not be the issue at all, since we are really trying to impart the idea that one can deal with new areas of knowledge if one

knows how to learn, how to find out about what is known, and how to abandon old ideas when

they are worn out. This means teaching ways of developing good questions rather than memorizing known answers , an idea that

traditional schools simply don’t cotton to at all, and that traditional testing methods are

unprepared to handle.”

Roger Schank, The Connoisseur’s Guide to the Mind

Most important 3 letters:

Why?

Message #10: From the U.S.A. to S.A.

“education” demands a revolution.

Brand InsideReprise:

THINK WEIRD: The High Standard

Deviation Enterprise

Saviors-in-Waiting

Disgruntled CustomersFringe CompetitorsRogue Employees

Edge SuppliersWayne Burkan, Wide Angle Vision: Beat the

Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue

Employees

“The highest performing companies have well-developed

systems for killing ideas their customers don’t want. As a result, these companies find it very difficult to invest adequate resources in disruptive

technologies—lower margin opportunities that their customers don’t want—until they

want them. And by then it’s too late.”

Clayton Christensen, The Innovator’s Dilemma

Message: TAKE SOMEONE NEW & WEIRD TO LUNCH

TODAY OR TOMORROW. [Inundate yourself with weird.]

Tomorrow’s Organizations:

Itinerant Potential Machines

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. Skilling. 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 thatt challenge-overturn our own “way of doing

things.”

Message #11: Normal = Death.

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work II

The Sameness Trap

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, working in

similar jobs, coming up with similar

ideas, producing similar things, with

similar prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

“Companies have defined so much ‘best practice’

that they are now more or less identical.”

Jesper Kunde, A Unique Moment

Message #12: Normal = Death.

Brand Outside

Strategy 1:Use E-Commerce to

Re-invent Everything!

Dell’s OptiPlex Facility

Big Job: 6 to 8 hours.(20,000 per day)

Parts Inventory: 2 hours, 100 square feet. (Overall, 5 days vs.

50 to 90 days; target is 2.5 days)

Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early

1999: 30 times a day. Late 2000: 30 times per … minute.

Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s:

2 weeks, 2 per week. Late 2000: 5 such deals per day

Source: www.ecompany.com (1/2001)

Cisco!

90% of $20B (=$50M/day)Annual savings in service

and support from customer self-management: $550M

Secret Cisco: Community!

C.Sat e >> C.Sat H

Customer Engineer Chat Rooms/Collaborative

Design ($1B “free” consulting) (45,000 customer problems a week solved via

customer collaboration)

Webcor. Construction. Web site for each project. Instant info on

status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage.

Source: Business Week (09.00)

Welcome to D.I.Y. Nation: “Changes in business processes will emphasize self service. Your costs as a business

go down and perceived service goes up because

customers are conducting it themselves.” Ray Lane, Oracle

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“The Age of the

Never Satisfied Customer”

Regis McKenna

WebWorld = Everything

Web as a way to run your business’ 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

“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

“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)

“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!

“Believe in the Internet … MORE

THAN EVER.”Andy Grove, Cover quote, Wired (June 2001)

Message #13: THE WORLD WILL NEVER BE THE SAME. BELIEVE IT.

Brand Outside

Strategy 2:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Consumer Electronics … 51%

Cars … 60% (90%)All consumer purchases … 83%

Bank Account … 89%Health Care … 80%

Women … 50+% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

“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!)

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a women 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

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

“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)

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

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

“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]

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

“Women don’t buy

brands. They join them.”

Faith Popcorn, EVEolution

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 Altan … THIS IS EVEN BIGGER THAN THE

INTERNET!

Tom Peters

Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How

Retailing’s Most Successful Stay that Way”

Presenting Experts: M = 16;

F = ??(272?)

0

“Amazing, now that I think about it. A bunch of guys --

developers, architects, contractors--sitting around

designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

Message #14:

OPPORTUNITY #1!

Brand Outside

Strategy 3:

Design Matters!

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

“What’s imperative is the creation of a style that

becomes a culture linking you to the community. You

can only do that through good design.” – Anita Roddick

Source: Design Council [UK]

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul

of a man-made creation.”Steve Jobs

Design “is” … WHAT & WHY I LOVE.

LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I

GET MAD. MAD.

Wanted: Dead [preferably] or Alive: 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. Personally, though not “artistic,” I’m a cool-stuff guy. I love what

I love and I hate what I hate. [Openly.] 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 “one of those things” …

that damn few companies put – consistently – on the front burner.

Message #15: In an “Age of Soft”,

DESIGN Rules!

Brand Outside

Strategy 4:

It’s the Experience!

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride

through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based

Leadership

“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

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

Client: “We’re not like Nike! We sell paper clips , 9mm bolts, who can be bothered?”

JK: “The whole world can be bothered if you brand

them well. Nike does not actually sell shoes. Nike sells the experience of using Nikes, the feeling of being a winner. And they

condense the message into just three words:

Just Do It! It is a question of being the only one, of offering the market

something unique.”

Source: Jesper Kunde, A Unique Moment

Message: “Experience” is the

“Last 80%”“Experience” applies to

all work!

HP Revisited

PWC Consultants lead Business Re-invention Process (“Experience

Economy”)

Fabulous Customer Service (“Service Economy”)

Terrific Servers (“Goods Economy”)

Message #16: “Experience”: Home

to [tomorrow’s] Market Cap!

Brand Outside

Strategy 5:

BRAND POWER!

“WHO ARE YOU [these days] ?”

TP to Client

“The idea that business is just a numbers affair has always struck me as preposterous.

For one thing, I’ve never been particularly good at numbers, but I think I’ve done a

reasonable job with feelings. And I’m convinced that it is feelings – and

feelings alone – that account for the success of the Virgin brand in all of

its myriad forms.”Richard Branson

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

“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

“Most companies tend to equate branding with the company’s marketing. Design a new marketing

campaign and, voila, 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, A Unique Moment

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology.

Stories create the emotional context people need to locate themselves in a larger experience.”

“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, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]

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

“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) Big Enchilada:

Try ’em on a skeptical Client!

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

Message: REAL Branding is personal. REAL Branding is integrity. REAL

Branding is consistency & freshness. REAL Branding is the answer to WHO

ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all-departments,

all-hands affair.

“WHO ARE WE?”

WHAT’S OUR

STORY?

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

“ WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DIFFERENCE TO THE CLIENT ”

Message #17: WHO ARE YOU?

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

“I don’t know.”

Karl Weick

“The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame

where the old tools of logic may be its undoing rather than its salvation. To drop these tools is

not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the

unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the

form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in

the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick

BossMessage2001: YOU CAN’T KEEP UP!

YOU DON’T HAVE THE ANSWERS!

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

Brand Leadership

Passion Rules!

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.]

“Create a Cause, not a ‘business.’

”Gary Hamel, Fortune (06.00), on re-inventing a

company (Exemplar #1: Charles Schwab)

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Ben Zander: “I am a dispenser of

enthusiasm.”

“You must be the change you wish to see in the world.”

Gandhi

“A leader is a dealer in hope.”

Napoleon

“I’d rather regret the things I have

done than the things I have not.”

Lucille Ball

“Let’s make a dent in the universe.”

Steve Jobs

Message #18:

GOOD LUCK!