Design = Differentiator #1 Design Management Institute : Design-Based Leadership in the 21 st Century Chatham MA 25October2000 [Version 01.22.01].
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Design = Differentiator #1Design Management Institute:Design-Based Leadershipin the 21st CenturyChatham MA 25October2000 [Version 01.22.01]
THE BASE CASE: I am a design fanatic. Personally, though not artistic, Im 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 doesnt. Furthermore, its one of those things that damn few companies put consistently on the front burner.
NOW THATS 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
Um Eduardo Kac and Alba, the glowing* bunny rabbit!*You can thank one selfless jellyfish and several French scientists!Source: Rutland Herald (10.01.00)
In 25 years, youll 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] [Barrons 11.13.2000]
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)
Quality Not Enough!While everything may be better, it is also increasingly the same.Paul Goldberger on retail, The Sameness of Things, The New York Times
The surplus society has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similarquality.Kjell Nordstrom and Jonas Ridderstrale,Funky Business
If you worship at the throne of the voice of the customer, youll get only incremental advances.Joseph Morone, President, Bentley College
These days, you cant succeed as a company if youre consumer led because in a world so full of so much constant change, consumers cant anticipate the next big thing. Companies should be idea-led and consumer-informed.Doug Atkin, partner, Merkley Newman Harty
The good 10 percent of American product design comes out of big-idea companies that dont believe in talking to the customer. They're run by passionate maniacs who make everybodys life miserable until they get what they want.Bran Ferren, Applied Minds/Wired 1-2001
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
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
We dont have a good language to talk about this kind of thing. In most peoples 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
Compare 10 order forms or data fields at a Web site.Save great and awful junk mail.Go on a <$10 shopping spree.Pay attention to signage. (And instruction manuals.)Start a notebook. NOW.
Car designers need to create astory. Every car provides an opportunity to create anadventure. The Prowler makes yousmile. Why? Because its focused. It has aplot, a reason for being, apassion.Freeman Thomas, co-designer VW Beetle; designer Audi TT
Experiencesare as distinct from services as services are from goods.Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
PlotWilliams Sonoma = 6 [was 10]Crate & Barrel = 8Sharper Image = 9+Smith & Hawken = 8+Garnet Hill = 9L.L. Bean = 5 [was 9+]Lands End = 7+Colonial Williamsburg = ?
Great Design is CheekyCEO Richard Bransons stated hurdle for any new Virgin product or service: best quality, good value, innovative, challenge existing alternatives, sense of fun or cheekiness
I wish more money and time was spent on designing an exceptional product, and less on trying to psychologically manipulate perceptions through expensive advertising. Phil KotlerSource: Design Council [UK]
Design is a way of demonstrating how beautiful something can be. It has a very profound quality. Design is a way of changing life and influencing the future. Sir Ernest Hall, Dean CloughSource: Design Council [UK]
It was a revelation to discover how design could change peoples behaviour. I learnt that simply by altering the graphic content of an exhibit you could double the number of people who visited it. Gillian Thomas, The Science MuseumSource: Design Council [UK]
The future will fascinate. A place where experience becomes more important than information, truth more important than technology, and ideas the only global currency. - Ralph Ardill, ImaginationSource: Design Council [UK]
Whats 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 RoddickSource: Design Council [UK]
Outstandingly good design in service industries is not an optional extra. It is an essential part of everything a company does, and what it stands for. Richard Dykes, MD, Royal Mail Design is one of the few tools that, for every $ you spend, you actually say something about your business. You have it in your power to use design to further the wealth and prosperity of your business. Raymond Turner, BAASource: Design Council [UK]
Designers are people who think with their hearts. James, age 10. If there were no design there would be nothing to do, and nothing would progress or get better. The world would fall apart. Anna, age 11. My favourite design is the Nike tick because it makes me feel confident, even though I am not so good at sports. Raoul, age 11.Source: Design Council [UK]
My favorite word is grace whether its amazinggrace, saving grace, graceunder fire, Grace Kelly. How we live contributes to beauty whether its how we treat other people or the environment.Celeste Cooper, designer
Lust for beauty and elegance underpins the most important discoveries in computational history. The beauty of a proof or a machine lies in a happy marriage of simplicity and power. Beauty is the ultimate defense against complexity. A good programmer can be at least a hundred times more productive than an average one. The gap has little to do with technical or mathematical or engineering training and much to do with taste, good judgment, aesthetic gifts.David Gelernter, Machine Beauty: Elegance and the Heart of Technology
The I.D. [International Design] Forty*Airstream Alfred A. Knopf Apple Computer Amazon.com Bloomberg Caterpillar CNN DisneyFedEx Gillette IBM Martha Stewart New Balance Nickelodeon Patagonia The New York Yankees 3M Etc. * List No. 1, 1999
Lady Sensor, Mach3, and $70M on developing the OralB CrossAction toothbrush23 patents, including 6 for the packagingSource: www.ecompany.com [06.00]
Design Transforms even the [Biggest] Corporations!TARGET the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)
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 Nordstrom and Jonas Ridderstrale, Funky Business
The MySimon ModelMySimon renders obsolete the value-added role of the trained salesperson and goes beyond the role of the typical e-retailer. Rather than selling the product, MySimon acts as a personal advisor to guide the customer to a source for purchase. The company generates revenue from vendor slotting fees and advertising.Richard Wine & David Morrison, Beyond the Exchange: The Future of B2B (HBR, 11-12/2000)
Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actuallymade it easier for users to buy.Jakob Nielsen, Nielsen Norman Group
Nielsen/Designing Web UsabilityAll Web projects are customer-interface projects!Simplicity rules!Make it easy for customers to perform useful tasks!Less cool, more useful!Speed rules!
SWASimple!!!!!!!!!!!!(customers call because the process is so easy they cant believe theyre done)30% of revenues directly from SWA site(vs. 6% for others)Source: Business Week (09.00)
One Persons Opinion [11.2000]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 digital response: 11 on a scale of 10!!
There is no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast.Lewis Carroll
Our innate idiosyncrasies are actually more endearing to others than our most glorious achievements. Veronique Vienne, The Art of Imperfection.Glorious imperfections Sam Phillips, Sun Records, on identifying & presenting raw talent
Address: 1 Big Man Plaza
Pretense (Failures are
I love Yes men
Seat 9B, UA233
Address: [email protected]
Typing: 60 WPM
We are a HOT Team
Screwing up is as normal as breathing
I love Misfits!
I love partners
P.S.F.: SummaryH.V.A. Projects (100%)Pioneer ClientsWOW Work (see below)Hot Talent (see below)Adventurous culturePoint of View (Methodology)W.W.P.F. (100%)When: Now!
Recruit [a/a = 1] Friend [in the Boondocks]Skip [Flip off] the Hierarchy!Recruit [A]nother Friend!Do Some Cool Shit! Fast!Surround the Bastards [with WOW WINS/ results]!
Reframers Rules:Rule 1:Never accept an assignment as given! (Please.)Rule 2:Youre never so powerful as when you are powerless!Rule 3:Every small project contains the entire enterprise DNA!
It was much later that I realized Dads 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
Characteristics of the Also rans*Minimize riskRespect the chain of commandSupport the bossMake budget*Fortune, article on Most Admired Global Corporations
New World of Work< 1 in 10 F500#1: Manpower Inc.Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)Microbusinesses: 12M-27MTotal: 31M-55MSource: Daniel Pink, Free Agent Nation
If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed, and that increasingly means you wont get paid much either.Michael Goldhaber, Wired
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
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
My work is a series of projects. My life is a series of moves. What can I connect to? My community. Carnegie Mellon student [Fast Company]
Message: This is an impact issue. Designers: Attach yourself to HR. Enhance the value of the Talent Pool by helping others with designing Brand You.
When land was the productive resource, nations battled over it. The same is happening now for talented people.Stan Davis & Christopher Meyer, futureWEALTH
Sellers Market: Tomorrows Headline*Molecular biologists are up 3 points, economists down 1/4, in moderate trading*futureWEALTH, Stan Davis and Christopher Meyer
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
Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mlange, 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
The Cracked Ones Let in the LightOur 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
Womens 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 diversitySource: Judy B. Rosener, Americas Competitive Secret
AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts on almost every measureTitle, Special Report, Business Week, 11.20.00
Jane Jacobs:Exuberant Varietyvs. the Great Blight of Dullness.F.A. Hayek:Spontaneous Discovery.Joseph Schumpeter:theGales of Creative Destruction.
Saviors-in-WaitingDisgruntled CustomersFringe CompetitorsRogue EmployeesEdge SuppliersWayne 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
Fighter Pilots Snipers Secret Service Agents:Splatter Vision[dont become too focused]Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
Message: (1) Make sure youre hangin with Cool Dudes. (2) Designers ought to stick their noses [and every other body part] into everyones business! Design sensibility rules everything!
ProgressiveWe dont sell insurance anymore.We sell speed. Peter LewisDigital cameras, wireless Net links, etc.:SOME CLAIMS PAID WITHIN 20 MINUTES!Source: Business Week (09.00)
?????????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
Carol Gilligan/ In a Different VoiceMen: Get away from authority, familyWomen:ConnectMen: Self-orientedWomen:Other-orientedMen: RightsWomen:Responsibilities
FemaleThink/ PopcornMen and women dont think the same way, dont communicate the same way, dont buy for the same reasons.He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.
[Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They usually dont like asking where things are. Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly hes ready to buy. For a man, ignoring the price tag is almost a sign of virility.Paco Underhill, Why We Buy*(*Buy this book!)]
Women and HealthcareWomen are more dissatisfied, frustrated by the way they are treatedand spoken down toby physicians, seek more information, are more pressed for time and make 75% of health care decisions and control 2/3 of health care $$$$ [and constitute 2/3 of health care employees].Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial AdvisorsWomen want a plan, to be listened to,to be taken seriously, to read about it, to think about it.Women do not want an in-your-face sales pitchSource: Kathleen Boyle, Wheat Boyle Butcher Singer
Women Beat Men at Art of InvestingSource: 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)
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 theyre 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
Marketing to Women: Help Them Save Time!80% work86% cook58% run errands with kids38% take child to school21% go to the gym21% take outside classes
E.g.: Genetically Altered FoodWould 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
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
[The Hollywood scripts that men write tend to be direct and linear, while womens 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, Americas Competitive Secret
Men & women on ambiguous problem [no answer]: MEN: quickly arrive at right answer WOMEN: longer time, multiple options in if, then formSource: Judy Rosener, Americas Competitive Secret
Weight Watchers International ModelWhat 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 todays skills?EVEolution
The New New Jiffy LubeIn the male mold, Jiffy Lube wasgoing all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the lets get it fixed fast, no conversation required experience.New JL: Control over her environment. Comfortin the service setting. Trust that her car is being serviced properly. Respectfor her intelligence and ability.EVEolution
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick. My game is haranguing business leaders about my fact-based conviction thatwomens 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
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. Id 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!
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
Products from the major competing companies around the world will become increasingly similar. Inevitably this means that the whole of a companys personality, its identity will become the most significant factor in making a choice between one company and its products and another.Wally Olins, Corporate Identity
Young people entering the labor market already have two televisions, the latest mobile phone, a car and a wardrobe full of clothes. No matter how important material values may be, there is more to life the employee of the future is seeking meaning and value. I am convinced that this change in attitudes will be the strongest driving force in the markets of the future. Moving from the physical to the metaphysical world entails moving from the product-oriented economy to a new Value Economy. The most important thing a company offers will be the Value your products convey to the customer. People will seek out brands that fulfill new and growing needs. We will demand the unique, because, on the physical level, we can have anything we want. This, for most companies, will demand a dramatic change in thinking..Jesper Kunde, A Unique Moment
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.]
Most companies tend to equate branding with the companys marketing. Design a new marketing campaign and, voila, youre 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
Client: Were 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, The Unique Moment
You cant survive floating on the tide, assessing the competition, conducting surveys to find out what your customers want right now. What do you want? What do you want to tell the world in the future? What does your company have that will enrichtheworld? You must believe in that it strongly enough to become unique at what you do.Jesper Kunde, The Unique Moment
Customers will follow the brand into new product categories as long as the brand lives up to its values. Thats why I think value positions will separate the winners from the losers.Jesper Kunde, The Unique Moment
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, Toms of Maine
Message: THIS IS THE BIG ENCHILADA. Case logic: (1) Brand is it. (2) Brand = Emotional reaction. (3) Design is THE KEY to emotional reaction.(4) Designers are the key to the strategic success of the enterprise. [If theyd only flick the chip off their collective shoulders.]
Brand Leadership!A key perhaps the key to leadership isthe effective communication of a story.Howard GardnerLeading Minds: An Anatomy of Leadership
Create a Cause, not a business. Gary Hamel, Fortune (06.00), on re-inventing a company to survive in the 00s (Exemplar #1: Charles Schwab)