Tom Peters’ We Are in a Brawl with No Rules Phoenix Technologies/ 10.13.2002

1. Tom Peters’ We Are in a Brawl with No RulesPhoenix Technologies/10.13.2002

2. TP’s 7 Phoenix Technologies Biases1. Great institution.2. Great product.3. (Potentially) great story.4. Hopelessly under-branded.5. Awesome opportunities—product & branding.6. Scope ought to be expanded (dramatically)—“the Cisco of my computer’s innards.”7. Engineering is cool—but there’s more to life.8. Success: a marketer-to-marketer sale, not an engineer-to-engineer sale.

3. I. Confusion Reigns.

4. “We are in abrawl with no rules.”Paul Allaire

5. II. Destruction Rules.

6. “There’s going to be a fundamental change in the global economy unlike anything we have hadsince the cavemen began bartering.”Arnold Baker, Chief Economist, Sandia National Laboratories

7. “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]

8. 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

9. “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

10. No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

11. “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 a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

12. “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

13. III. B-I-G “Value Added” Wins.

14. The Big Day!

15. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

16. “These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard

17. 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).

18. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

19. “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

20. “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

21. IV. “Value Added” = Scintillating Customer Experiences.

22. “Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

23. “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

24. “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

25. 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

26. WHAT CAN BROWN DO FOR YOU?

27. The “Experience Ladder”Experiences ServicesGoods Raw Materials

28. 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

29. “Lexus sells its cars as containers for our sound systems. It’s marvelous.”—Sidney Harman/ Harman International

30. Ladder PositionMeasureSolutions Success(Experiences)Services SatisfactionGoods Six-sigma

31. 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

32. V. Experiences Plus: The “Dream Fulfillment Business.”

33. 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

34. Common Products “Dream” ProductsMaxwell House StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners PeleSource: Gian Luigi Longinotti-Buitoni

35. 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

36. VI. Brands Rule!

37. “Salt is salt is salt. Right? Not when it comes in a bluebox 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

38. 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

39. The Heart of Branding …

40. “WHAT’S OUR STORY?”

41. “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

42. TP’s plea: No jargon!

43. “EXACTLY HOW ARE WE DRAMATICALLYDIFFERENT?”

44. “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

45. Can Be Done in Tech:“Don’t Leave Home Without Us.”IBM*IntelMicrosoft*NortonCisco**Clearly did not have the best technology

46. VII. Leadership: GO FOR IT!

47. Bill Parcells’ World/ Brand You World!BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!NY Post (9/99)

48. “If things seem under control, you’re just not going fast enough.”Mario Andretti

49. “Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec

50. TP’s 7 Phoenix Technologies Biases1. Great institution.2. Great product.3. (Potentially) great story.4. Hopelessly under-branded.5. Awesome opportunities—product & branding.6. Scope ought to be expanded (dramatically)—“the Cisco of my computer’s innards.”7. Engineering is cool—but there’s more to life.8. Success: a marketer-to-marketer sale, not an engineer-to-engineer sale.