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Tom peters re imagine business excellence in a disruptive age 02 07 2004
Tom Peters’ Re-Imagine!Business Excellence in a Disruptive Age02.07.2004


Slides at tompeters com
Slides at …tompeters.com



“Uncertainty is the only thing to be sure of.”—Anthony Muh,head of investment in Asia, Citigroup Asset Management“If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff, U. S. Army


All bets are off
All Bets Are Off.


Jobs technology globalization war warfighting security
Jobs TechnologyGlobalization War, Warfighting & Security


Jobs new technology globalization war warfighting security
JobsNew TechnologyGlobalization War, Warfighting & Security


“Behind Surging Productivity: The Service Sector Delivers. Firms Once Thought Immune to Boosting Worker Output Are Now Big Part of the Trend”—Headline/WSJ/11.03


As economy gains outsourcing surges headline boston globe 11 03
“As Economy Gains, Outsourcing Surges” Firms Once Thought Immune to Boosting Worker Output Are Now Big Part of the Trend”—Headline/Boston Globe/11.03


1 in 10 tech jobs headed offshore by end of 200 4 source gartner group 06 03
1 in 10 tech jobs headed offshore by end of 200 Firms Once Thought Immune to Boosting Worker Output Are Now Big Part of the Trend”4.Source: Gartner Group/06.03


Firms Once Thought Immune to Boosting Worker Output Are Now Big Part of the Trend”14MILLION service jobs are in danger of being shipped overseas”—The Dobbs Report/USN&WR/11.03/re new UCB study


“One Singaporean worker Firms Once Thought Immune to Boosting Worker Output Are Now Big Part of the Trend”costs as much as …3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/08.18.03


“The proper role of a healthily functioning economy is to destroy jobs and to put labor to use elsewhere. Despite this truth, layoffs and firings will always sting, as if the invisible hand of free enterprise has slapped workers in the face.” —Joseph Schumpeter


--79% of U.S. jobs in “structurally changed professions” (“permanently eliminated jobs”)(40K of 160K U.S. IBM)--”As we trade we release more labor from the service sector because our highly skilled and highly paid workers lose their competitive advantage. So we go to the next big thing. We specialize in innovation. We develop new products and start new industries.” (Erica Groshen, labor economist Fed of NY)Source: CNN/Money/01.07.2004


There is no job that is america s god given right anymore carly fiorina hp 01 08 2004
“There is no job that is America’s God-given right anymore.”—Carly Fiorina/ HP/ 01.08.2004


“WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?” anymore.”—Headline/ Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity rather than anxiety.”)


“Either we modernize or we will be modernized by the unremitting force of the markets.”—Gerhard Schroeder


Jobs technology globalization war warfighting security1
Jobs unremitting force of the markets.”TechnologyGlobalization War, Warfighting & Security


< unremitting force of the markets.”1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000Xtech 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 unremitting force of the markets.”“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 found that the pace of development from one societal type to another is accelerating. The agricultural society originated 10,000 years ago, the industrial society between 200 and 100 years ago, the information-based society 20 years ago.”—Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business


“I genuinely believe we are living through the type to another is accelerating. The agricultural society originated 10,000 years ago, the industrial society between 200 and 100 years ago, the information-based society 20 years ago.”greatest intellectual moment in history.”Matt Ridley, Genome


“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]


“A California biotechnology company total of all human knowledge on a personal device.”has put the entire sequence of the human genome on a single chip, allowing researchers to conduct on the complex relationships between the 30,000 genes that make up a human being in a single experiment.”—Page 1, Financial Times/10.03.2003


Sequenom/David Ewing Duncan/ total of all human knowledge on a personal device.”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.”


“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 AustraliaSource: The Economist/12.21.2002


“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


“UPS used to be a trucking company with technology. Now it’s a technology company with trucks.”—Forbes, upon naming UPS “Company of the Year” in Y2000


Jobs technology globalization war warfighting security2
Jobs it’s a technology company with trucks.”TechnologyGlobalization War, Warfighting & Security


The world must learn to live with a wide awake china headline ft 11 03
“The World Must Learn to Live with a Wide-awake China” it’s a technology company with trucks.”—Headline/FT/11.03


“Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it will bring the two centuries of global domination by Europe and, subsequently, its giant North American offshoot to an end.” —Financial Times (09.22.2003)


“The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.”—Craig Barrett/Intel/01.08.2004


Cost of a programmer per ibm china 12 50 per hour usa 56 per hour source wsj 01 19 2004
Cost of a Programmer, per IBM … point where China: $12.50 per hourUSA: $56 per hourSource: WSJ/01.19.2004


China roars
China Roars! point where


“China has become a manufacturing hub for the rest point where of the world in low-end labor-intensive goods—and the rest of the world is becoming a manufacturing hub for China in high-end, capital-intensive goods. … China may be a threat to certain parts of the global supply chain that rely on low-cost labor, but it represents an even greater opportunity via production-efficiency gains, economic welfare gains and long-term dynamic potential. Its booming exports are more than matched by booming industrial imports and foreign investment opportunities. It has become the new engine of global growth.”Source: Glen Hodgson & Mark Worrall/Export Development Canada, in “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


1990-2003 point where : Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of Total Global Growth in 2002.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


1998-2003 point where : 45,000,000 layoffs in state sector; offset by $450B in foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico, 15% in Korea.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


50% point where of output from private firms, 37% from state-owned firms; 80% of workforce (incl. rural) now in private employ.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


Population growth = 1%; point where two-thirds of housing privately owned, 90% of urban Chinese own a home (vs. 61% in Japan)Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


200 cities with >1,000,000 population. point where Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


200,000,000 unemployed; must create 20,000,000 jobs per year to offset layoffs; 400,000,000 elderly Chinese by 2030 (currently no pension funds).Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


397,000,000 fixed phone lines = to offset layoffs; 400,000,000 elderly Chinese by 2030 (currently no pension funds).90X since 1989.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


2003 to offset layoffs; 400,000,000 elderly Chinese by 2030 (currently no pension funds).: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%: DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs, PDAs, car stereos).Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003


“When the Chinese Consumer Is King: America’s mass market is second to none. Someday it will just be second.”—Headline, New York Times/12.14.2003


World economic output u s a 21 eu 16 china 13 2x since1991 source new york times 12 14 2003
World economic output market: U.S.A., 21%; EU, 16%; China, 13% (2X since1991)Source: New York Times/12.14.2003


“America, like everyone else, must get used to being a loser as well as a gainer in the global economy. In the end, the 21st century is unlikely to be the American Century.”—”When the Chinese Consumer Is King”/New York Times/12.14.2003.“The notion that God intended Americans to be permanently wealthier than the rest of the world, that gets less and less likely as time goes on.”—Robert Solow, Nobel laureate in economics/New York Times/12.14.2003


Jobs technology globalization war warfighting security3
Jobs loser as well as a gainerTechnologyGlobalizationWar, Warfighting & Security


“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


“September 11 amounts to World War III—the third great totalitarian challenge to open societies in the last 100 years.”—Thomas Friedman/NYT/01.08.2004


“The world’s new dimension (computers, Internet, globalization, instantaneous communication, widely available instruments of mass destruction and so on) amounts to a new metaphysics that, by empowering individual zealots or agitated tribes with unappeasable grievances, makes the world unstable and dangerous in radically new ways.” —Lance Morrow/Evil


The Breaking of Nations: Order and Chaos in the Twenty-first CenturyRobert Cooper (as interpreted by Tom Peters)


“This is a dangerous world and Century it is going to become more dangerous.”“We may not be interested in chaos but chaos is interested in us.”Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century


“What happened after 1945 was not so much a radically new system as the concentration and culmination of the old one.” —Robert Cooper, on the Cold War, from The Breaking of Nations: Order and Chaos in the Twenty-first Century


“What has been emerging into the daylight since 1989 is not a rearrangement of the old system but a new system. Behind this lies a new form of statehood, or at least states that are behaving in a radically different way from the past.” —Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century


“The image of peace and order through a single hegemonic power center [is wrong]. … It was not the empires but the small states that proved to be a dynamic force in the world. Empires are ll-designed for promoting change. Holding an empire together requires an authoritarian political style; innovation leads to instability.”—Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century


Read this
Read This! power center [is wrong]. … It was not the empires but the small states that proved to be a dynamic force in the world. Empires are ll-designed for promoting change. Holding an empire together requires an authoritarian political style; innovation leads to instability.”


“The new century risks being overrun by both anarchy and technology. The two great destroyers of history may reinforce each other. Both the spread of terrorism and that of weapons of mass destruction point to a world in which Western governments are losing control. The spread of the technology of mass destruction represents a potentially massive redistribution of power away from the advanced industrial (and democratic) states and toward smaller states that may be less stable and have less of a stake in an orderly world; or more dramatically still, it may represent a redistribution of power away from the state itself and towards individuals, that is to say terrorists or criminals. In the past to be damaging, an ideological movement had to be widespread to recruit enough support to take on authority. Henceforth, comparatively small groups will be able to do the sort of damage which before only state armies or major revolutionary movements could achieve. A few fanatics with a ‘dirty bomb’ or biological weapons will be able to cause death on a scale not previously envisaged. … Emancipation, diversity, global communication—all of the things that promise an age of riches and creativity—could also bring a nightmare in which states lose control of the means of violence and people lose control of their futures.”—Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century


Reflect
Reflect. technology. The two great destroyers of history may reinforce each other. Both the spread of terrorism and that of weapons of mass destruction point to a world in which Western governments are losing control. The spread of the technology of mass destruction represents a potentially massive redistribution of power away from the advanced industrial (and democratic) states and toward smaller states that may be less stable and have less of a stake in an orderly world; or more dramatically still, it may represent a redistribution of power away from the state itself and towards individuals, that is to say terrorists or criminals. In the past to be damaging, an ideological movement had to be widespread to recruit enough support to take on authority. Henceforth, comparatively small groups will be able to do the sort of damage which before only state armies or major revolutionary movements could achieve. A few fanatics with a ‘dirty bomb’ or biological weapons will be able to cause death on a scale not previously envisaged. … Emancipation, diversity, global communication—all of the things that promise an age of riches and creativity—could also bring a nightmare in which states lose control of the means of violence and people lose control of their futures.”—Robert Cooper,


“The two systems—the modern based on balance and the post-modern based on openness—do not co-exist well together.”—Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century


“Before we can talk about the security requirements for today and tomorrow, we have to forget the security rules of yesterday.”—Robert Cooper,The Breaking of Nations: Order and Chaos in the Twenty-first Century


“IT MAY SOMEDAY BE SAID THAT THE 21 today and tomorrow, ST 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
From 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. …: Weapon v. WeaponTo: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 Information 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


“The mechanical speed of combat vehicles has not increased since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”—Edward Luttwak, on the unprecedented pace of the move toward Baghdad


“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/ network-centric warriors admire Wal*Mart,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.


“Armies are like plants, immobile, firm-rooted, nourished through long stems to the head” … guerillas: “might be a vapour;” fighting guerillas “like eating soup with a knife”Source: T.E. Lawrence


Eric’s Army through long stems to the head” … guerillas: “might be a vapour;” fighting guerillas “like eating soup with a knife”Flat.Fast.Agile.Adaptable.Light … But Lethal.Talent/ “I Am an Army of One.”Info-intense.Network-centric.


Float like a butterfly sting like a bee ali
“Float like a butterfly. Sting like a bee.” through long stems to the head” … guerillas: “might be a vapour;” fighting guerillas “like eating soup with a knife” —Ali


“To fight terrorism with an army is like trying to shoot a cloud of mosquitoes with a machine gun.”—Review of Terror in the Name of God/NYT/11.2003


“Rather than have massive armies that people can go along and inspect, it is now about having rapidly deployable expediency forces that can be dropped by land, sea or air and with full support.” —MoD official, on Defense Secretary Geoff Hoon’s defense white paper (12.2003)


“We must not only transform our armed forces but the Defense Department that serves them—by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be ‘validated,’ but rather anticipates them before they appear and develops new capabilities to dissuade them and deter them.” —Donald Rumsfeld, Foreign Affairs


Boyd Defense Department that serves them—by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be ‘validated,’ but rather anticipates them before they appear and develops new capabilities to dissuade them and deter them.”


OODA Loop/Boyd Cycle Defense Department that serves them—by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be ‘validated,’ but rather anticipates them before they appear and develops new capabilities to dissuade them and deter them.”“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” Defense Department that serves them—by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be ‘validated,’ but rather anticipates them before they appear and develops new capabilities to dissuade them and deter them.”“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.”—AliBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)


F86 vs. MiG/Korea/10:1 people think of when they hear the term; rather it was all about 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)


Maneuverists boyd the fighter pilot who changed the art of war robert coram
“Maneuverists” people think of when they hear the term; rather it was all about BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)


Thunder Run/3 people think of when they hear the term; rather it was all about rd Infantry Division/04.07.2004/”We wanted to create as much chaos as possible.”—COL David Perkins/“Disorient and demoralize”—DHR


Strategy meetings held once or twice a year to strategy meetings needed several times a week
“Strategy meetings held once or twice a year” to people think of when they hear the term; rather it was all about “Strategy meetings needed several times a week”

Source: New York Times on Meg Whitman/eBay


All bets are off1
All Bets Are Off! people think of when they hear the term; rather it was all about


“There will be more people think of when they hear the term; rather it was all about confusion in the business world in the next decadethan in any decade in history. And the current pace of change will only accelerate.”Steve Case


“We have no future because our present is too volatile. We have only risk management. The spinning of the given moment’s scenarios. Pattern recognition.”—from William Gibson, Pattern Recognition


“Save the date.” Dennis Kozlowski and Mark Swartz. Martha Stewart. Scott Sullivan. John Rigas. Walter Forbes and Kirk Shelton. Frank Quattrone. Richard Scrushy. Miscl. EnronniesSource: Headline/Business Day/NYT/01.08.2004


We are in a brawl with no rules paul allaire
“We are in a Martha Stewart. Scott Sullivan. John Rigas. Walter Forbes and Kirk Shelton. Frank Quattrone. Richard Scrushy. Miscl. Enronniesbrawl with no rules.”Paul Allaire


S a v
S.A.V. Martha Stewart. Scott Sullivan. John Rigas. Walter Forbes and Kirk Shelton. Frank Quattrone. Richard Scrushy. Miscl. Enronnies


I Believe … Martha Stewart. Scott Sullivan. John Rigas. Walter Forbes and Kirk Shelton. Frank Quattrone. Richard Scrushy. Miscl. Enronnies1. 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! ANDYOU?


Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.


It is the foremost task—and responsibility— Perspectiveof our generation to re-imagine our enterprises, private and public.—from the Foreword, Re-imagine


“How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation, discovery and competition? Do we value stability and control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles, stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel, The Future and Its Enemies


2 the destruction imperative
2. The Destruction Imperative. as individuals and as a civilization: Do we search for stasis—a regulated, engineered world?


“It is generally much easier to as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? kill an organization than change it substantially.” Kevin Kelly, Out of Control


C e o to c d o
C.E.O. as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? to C.D.O.


“Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.”Kevin Kelly, New Rules for the New Economy


Forbes100 from 1917 to 1987 not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.”: 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


It s just a fact survivors underperform dick foster
“It’s just a fact: performance data stretching back 40 years for 1,000 U.S. companies. Survivors underperform.”—Dick Foster


Rate of Leaving F500 performance data stretching back 40 years for 1,000 U.S. companies. 1970-1990: 4XSource: The Company, John Micklethwait & Adrian Wooldridge (1974-200: One-half biggest 100 disappear)


“Far from being a source of comfort, bigness became a code for inflexibility.”—John Micklethwait & Adrian Wooldridge, The Company


for inflexibility.”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” for inflexibility.”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock


Success Kills! for inflexibility.”“The more successful a company, the flatter its forgetting curve.”— Gary Hamel and C.K. Prahalad


“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
“Conglomerates don’t work.” to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:—James Surowiecki, The New Yorker (07.01,2002)


“MERGERS: Why Most Big Deals Don’t Pay Off. A to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.”—BusinessWeek/10.14.2002


Market Share, Anyone? to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:— 240 industries; market-share leader is ROA leader 29% of the time — Profit / ROA leaders: “aggressively weed out customers who generate low returns”Source: Donald V. Potter, Wall Street Journal


“Acquisitions are about buying market share. to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: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


“Survival of the Fittest Not the Fattest”/John Kay/ selected against. FT03.27.2003“I have heard it from people who make pharmaceuticals and from people who make defense equipment. From executives in utilities and executives in advertising. Among banks and law firms. .. They all expect their industry to develop the way the car industry has. In an increasingly globalized marketplace, maturing industries will become steadily more concentrated. Only a small number of big companies will survive.“There is one problem with these analogies. What is said about the motor industry is not true.The peak of concentration in the automobile industry was reached in the early 1950s and since then there has been a substantial decline. However you look at it, small carmakers have been steadily gaining market share at the expense of large ones. Back in the 1960s, the 10 largest carmakers had a market share of 85 percent; today it is about 75 percent. Concentration has fallen, even though weak firms have been repeatedly absorbed through mergers.“As markets evolve, differentiation becomes steadily more important. Success in the motor industry comes not from size or scale, but from developing competitive advantages in operations and marketing those advantages internationally. The same is true in pharmaceuticals and defense equipment, utilities and banking, telecommunications and media.”


Lessons from the Bees! selected against. “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]


“The Industrial Revolution was about scale: vast factory complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. America’s military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.” —Robert Kaplan, Warrior Politics


TP on Acquisitions complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. America’s military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.”1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.)2. Big (GE, Cisco, Omnicom) 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.


The new g e way dyb com
The [New] G complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. America’s military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.”e WayDYB.com


Change the rules before somebody else does ralph seferian vp oracle
“Change the rules before somebody else does.” complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. America’s military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.”—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 44 m 73m 4m 4m 0m
The Gales of Creative Destruction thinking. That’s why they will most likely be wrong.”+29M = -44M + 73M+4M = +4M - 0M


The secret of fast progress is inefficiency fast and furious and numerous failures kevin kelly
“The secret of fast progress is thinking. That’s why they will most likely be wrong.”inefficiency, fast and furious and numerous failures.”Kevin Kelly


RM thinking. That’s why they will most likely be wrong.”: “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)


“... natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... To invent the human mind ...”— The Cobra Event


Silicon Valley Success of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... To invent the human mind ...”[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 jackpotSource: The Economist


Axiom (Hypothesis) of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... To invent the human mind ...”: 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.


Organize for performance customer satisfaction disorganize for renewal innovation
“Organize” of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... To invent the human mind ...” for … performance & customer satisfaction.“Disorganize” for … renewal & innovation.


“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 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. *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: Education. Cambridge, Massachusetts. Xavier Comtesse: “You never hear a Swiss say, ‘I want to change the world.’ We need to take more risks.” 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
No Wiggle Room! Education. Cambridge, Massachusetts. Xavier Comtesse: “You never hear a Swiss say, ‘I want to change the world.’ We need to take more risks.”“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte


Just Say No … Education. Cambridge, Massachusetts. Xavier Comtesse: “You never hear a Swiss say, ‘I want to change the world.’ We need to take more risks.”“I don’t intend to be known as the ‘King of the Tinkerers.’ ”CEO, large financial services company


Perfection is achieved only by institutions on the point of collapse c northcote parkinson
“Perfection is achieved only by institutions on the point of collapse.”— C. Northcote Parkinson


2a yo jim or the case for t e c h n i c o l o r
2A of collapse.”. Yo, Jim . Or:The Case for … Technicolor!


“intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.”


Herman Melville on JPJ: boundless ambition, civilized in externals but a savage at heart.”“intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.”—from Evan Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy


Huh? boundless ambition, civilized in externals but a savage at heart.”“Humility: The Surprise Factor in Leadership … bosses with Gung-ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/re JCollins/10.03


Jim tom joined at the hip not
Jim & Tom. Joined at the hip. boundless ambition, civilized in externals but a savage at heart.”Not.


I good to great ii built to last iii quiet humble leaders
I. Good to Great boundless ambition, civilized in externals but a savage at heart.”II. Built to LastIII. Quiet, Humble Leaders


I good to great ii built to last iii quiet humble leaders1
I. boundless ambition, civilized in externals but a savage at heart.”Good to GreatII. Built to LastIII. Quiet, Humble Leaders


Good to Great boundless ambition, civilized in externals but a savage at heart.”: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo


Good to Great boundless ambition, civilized in externals but a savage at heart.”: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo


Good to Great boundless ambition, civilized in externals but a savage at heart.”: “Fannie Mae and Freddie Mac receive as much as $164 billion in implicit federal subsidies but have done little to increase home ownership or reduce the cost of home loans, according to a draft study by the Federal Reserve.” —New York Times/12.23.03 (Average rate reduction is 7 basis points, or .07%)


Great companies set the agenda period
Great Companies … boundless ambition, civilized in externals but a savage at heart.”SETTHEAGENDA. (Period.)


AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ AdventurersUS Steel … Ford … Macy’s … Sears … Litton Industries … ITT …The Gap …Limited … Wal*Mart …P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun …Oracle … Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express… Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN …


T b atari dec wang j vs t hp carly f
T & B: Atari, DEC, WANG? AdventurersJ vs. T: HP/Carly F?


I good to great ii built to last iii quiet humble leaders2
I. Good to Great AdventurersII. Built to LastIII. Quiet, Humble Leaders


Built to Last v. Built to Flip Adventurers“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


Warren bennis patricia ward biederman organizing genius great groups don t last very long
Warren Bennis & Patricia Ward Biederman/ AdventurersOrganizing Genius:Great Groups Don’t Last Very Long!


W a mozart 1756 1791 he changed the world and enriched humanity
W.A. Mozart Adventurers1756 – 1791HE CHANGED THE WORLD AND ENRICHED HUMANITY


We are in a brawl with no rules paul allaire1
“We are in a Adventurersbrawl with no rules.”Paul Allaire


Forbes100 from 1917 to 1987 Adventurers: 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


“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 corporation as we know it, which is now 120 years old, isnot likely to survive the next 25 years.Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0


“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


Jane Jacobs: Dutch Shell] Arie De Geus is wrong in suggesting, in Exuberant Varietyvs. the Great Blight of Dullness. F.A. Hayek:Spontaneous Discovery Process.Joseph Schumpeter: theGales of Creative Destruction.


I good to great ii built to last iii quiet humble leaders3
I. Good to Great Dutch Shell] Arie De Geus is wrong in suggesting, in II. Built to LastIII. Quiet, Humble Leaders


Huh quiet workmanlike stoic leaders bring about the big transformations jc
Huh? Dutch Shell] Arie De Geus is wrong in suggesting, in “Quiet, workmanlike, stoic leaders bring about the big transformations.”--JC


Huh? Dutch Shell] Arie De Geus is wrong in suggesting, in “Humility: The Surprise Factor in Leadership … bosses with Gung-ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)


Wellington nelson disraeli churchill montgomery thatcher
Wellington Dutch Shell] Arie De Geus is wrong in suggesting, in NelsonDisraeliChurchillMontgomeryThatcher


“Humble” Pastels? Dutch Shell] Arie De Geus is wrong in suggesting, in T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S. Grant/W.T. ShermanTR/FDR/LBJ/RR/JFKPatton/Monty/HalseyM.L. King/C. de Gaulle/M. Gandhi/W. ChurchillPicasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson H. Clinton/G. Steinem/I. Gandhi/G. Mieir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/T.A. Edison Rummy/Norm/Henry/Wolfie Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth Dickinson/Arabella Babb Mansfield/Margaret Sanger


“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.”— Jack Welch, on GE’s quality program


“Roosevelt’s duplicity, Churchill’s self-absorption” … “We are all worms. But I do believe that I am a glow-worm.” (WSC) … “Imperial and bold” [WSC and TR] … “arrogance and instability” … “rough, sarcastic, bullying”Source: Jon Meacham, Franklin and Winston, et al.


A vainglorious self promoter spoiling for a fight arthur koestler on galileo
“a vainglorious self-promoter spoiling for a fight” … “We are all worms. But I do believe that I am a glow-worm.” (WSC) … “Imperial and bold” [WSC and TR] … “arrogance and instability” … “rough, sarcastic, bullying”—Arthur Koestler on Galileo


Audie Murphy was the most decorated soldier in WW2. He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …


The good conduct medal
… the Good Conduct medal. every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …


Men with no vices have very few virtues a lincoln
“Men with no vices have very few virtues.” every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …—A. Lincoln


Jim Collins vs. Michael Maccoby every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …“quiet, workmanlike, stoic”vs. “larger-than-life leaders”/ “egoists, charmers, risk-takers with big visions”: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates


“In Tom’s world it’s always better to try a swan every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won … dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003


The Re-imagineer’s Credo … or, every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …Pity the Poor Brown*Technicolor Times demand …Technicolor Leaders and Boards who recruit …Technicolor People who are sent on …Technicolor Quests to execute …Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …Technicolor Times.*WSC


“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”


Ii new business new tech
II. NEW BUSINESS. 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.”NEW TECH.


3 is it web on the bus or off the bus
3. IS/ IT/ Web: 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.”“On the Bus” or “Off the Bus.”


“E-commerce is happening the way all the hype said it would. Internet deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it is very, very early. We can’t even glimpse IT’s potential in changing the way people work and live.” —Andy Grove (BusinessWeek/August 2003)


100 square feet
100 would. Internet deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it is very, very early. We can’t even glimpse IT’s potential in changing the way people work and live.” square feet


Dell s optiplex facility big job 6 to 8 hours 80 000 per day parts inventory 100 square feet
Dell’s OptiPlex Facility would. Internet deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it is very, very early. We can’t even glimpse IT’s potential in changing the way people work and live.” Big Job: 6 to 8 hours.(80,000 per day)Parts Inventory:100square feet.


“Invisible Supplier Has Penney’s Shirts All Buttoned Up: From Hong Kong, It Tracks Sales, Restocks Shelves, Ships Right to the Store.”—Headline, Wall Street Journal (09.11.03)


From Hong Kong, It Tracks Sales, Restocks Shelves, Ships Right to the Store.”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. Patients don’t have to wait for anything. The information from the physician’s office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.” —David Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)


“Supply Chain” 2000: From Hong Kong, It Tracks Sales, Restocks Shelves, Ships Right to the Store.”“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)


“Dawn Meyerreicks, CTO of the Defense Information 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


“The mechanical speed of combat vehicles has not increased since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”—Edward Luttwak, on the unprecedented pace of the move toward Baghdad


The real news x1 000 000 towtrucknet com
The Real “News”: since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”X1,000,000TowTruckNet.com


E piphany epicurious com
e-piphany since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”epicurious.com


eRevolution since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”40,000,000Americans (1 of 2 singles/40% of American adults) went to an online matchmaking site last month (USN&WR/09.29.03)


Flash mobs
“flash mobs” (!) since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”


“Open source is doing for mass innovation what the assembly line did for mass production. Get ready for the era when collaboration replaces the corporation.” —Thomas Goetz/ Wired/11.2003 (“Current methods are not fast enough, not ambitious enough, or don’t take advantage of our collective creative potential.”)


“MIT Everywhere: assembly line did for mass production. Get ready for the era when collaboration replaces the corporation.” EVERY LECTURE, EVERY LECTURE, EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL GEEKS GETTING AN MIT EDUCATION, OPEN SOURCE-STYLE.”—Headline/Wired/09.03


“A Big Electronics Show, the Buzz Is All About Connections” —headline, New York Times/ 01.13.2003/ Consumer Electronics Show


m-“On” or Out of the Loop Connections”“Managers in Finland always keep their phones on. Customers expect fast reactions. And if you can’t reach a superior, you make many decisions yourself. Managers who want to influence decisions of subordinates must keep their phones open.”—Risto Linturi, Finnish m-guru, in Howard Rheingold’s Smart Mobs


Impact No. 1/ Logistics & Distribution Connections”: 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
Autobytel Connections”:$400.Wal*Mart:13%.Source: BW(05.13.2002)


WebWorld = Everything Connections”Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor


Message Connections”: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.


Message Connections”: 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
Read It Closely ground up.:“We don’t sell insurance anymore.Wesell speed.”Peter Lewis, Progressive


The New Infantry Battalion/ ground up.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
I’net … 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. … allows you to dream dreams you could never have dreamed before!


“Suppose 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. —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


Hyperlinks subvert hierarchy the cluetrain manifesto
“Hyperlinks subvert hierarchy!” 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. The Cluetrain Manifesto


[ 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. Words to Live By …“Hierarchy is an organization with its face toward the CEO and its ass toward the customer.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business]


Case crm
Case 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. : CRM


Anne busquet american express not age of the internet is age of customer control
Anne Busquet/ American Express 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. Not: “Age of the Internet”Is: “Age of Customer Control”


Amen the age of the never satisfied customer regis mckenna
Amen! 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. “The Age of the NeverSatisfied Customer”Regis McKenna


“The Web enables total transparency. 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. 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. starting to lose the authority they once had. There are all these roles premised on access to privileged information. … 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 starting to lose the authority they once had. There are all these roles premised on access to privileged information. … D.I.Y. Nation:“Changes in business processes will emphasize self service. Your costs as a business go down and perceivedservice 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
Psych 101: starting to lose the authority they once had. There are all these roles premised on access to privileged information. … Strongest Force on Earth?My need to be in perceived control of my universe!


Crm has almost universally failed to live up to expectations butler group uk
“CRM has, almost universally, failed to live up to expectations.”Butler Group (UK)


No! No! No! expectations.”FT: “The aim [of CRM] is to make customers feel as they did in the pre-electronic age when service was more personal.”


CGE&Y (Paul Cole) expectations.”: “Pleasant Transaction” vs.“Systemic Opportunity.”“Better job of what we do today” vs.“Re-think overall enterprise strategy.”


Here We Go Again: expectations.”Except It’s Real This Time!Bank online: 24.3M (10.2002);2XY2000.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.”Source: The Wall Street Journal/10.21.2002



108 x 5 vs 8 x 1 540 vs 8 98 5
108 X 5 expectations.”vs. 8 X 1= 540 vs. 8(-98.5%)


Steel expectations.”: 75,000,000 tons in ’82 to 102,000,000 tons in ’02. 289, 000 steelworkers in ’82 to 74,000 steelworkers in ’02. Source: Fortune/11.24.03


The coefficient of friction associated with the grunge of business is amazing michael schrage
“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
“A bureaucrat is an expensive microchip.” business is amazing!”Dan Sullivan, consultant and executive coach


Ibm s project eliza self bootstrapping artilects
IBM’s Project business is amazing!”eLiza!** “Self-bootstrapping”/ “Artilects”


Deep Blue Redux* business is amazing!”: 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!


Probable parole violations business is amazing!”: 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



“Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!”— Charles Handy


“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


Ford marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – : “Vehicle brand owner”(“design, engineer, and market, but not actually make”)Source: The Company, John Micklethwait & Adrian Wooldridge


“P&G Hires Out Employee Services to IBM” marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – —Burlington Free Press/09.10.03/on IBM’s 10-year, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June)


“WHERE IS YOUR JOB GOING”: marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – writing software, designing chips, reading MRIs, processing mortgages, preparing tax returns, managing computer networks (etc: GE Capital’s 15,000 in Delhi), preparing PP slides for McKinsey (350 in Chennai), equity analysis of U.S. companies (Morgan Stanley) …Source: Fortune/11.24.03


“Know we know what all that fiber-optic cable is good for: BROADBAND’S KILLER APP, IT TURNS OUT, IS INDIA”—Fortune/11.24.03


E g jeff immelt 75 of admin back room finance digitalized in 3 years source bw 01 28 02
E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years.Source: BW (01.28.02)


“GE is a champion of India’s scientists, technicians, business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.” —FT/06.03.03


Ebookers plc
!!!!!!!!! business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”ebookers PLC


Iii new business new value proposition
III. NEW BUSINESS. NEW VALUE PROPOSITION. business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”


5 the psf solution the professional service firm model
5. The “PSF Solution”: business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”The Professional Service Firm Model.


Sarah daddy what do you do daddy i m a cost center
Sarah: business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”“ Daddy, what do you do?”Daddy: “I’m a ‘cost center.’ ”


So what will be the basic building block of the new org
So what business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”will be the Basic Building Block of theNew Org?


Every job done in w c w is also done outside for profit
Every job done in W.C.W. is also business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”done “outside” …for profit!


Answer psf professional service firm department head to managing partner hr is etc inc
Answer: business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.


Tp to hrmac you are the rock stars of the age of talent
TP to HRMAC business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”:Youare the …Rock Stars of the Age of Talent!


Dd 21m
DD business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”$21M


Tp to napm you are the rock stars of the b2b age
TP to NAPM business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”:Youare the …Rock Stars of the B2B Age!


“P.S.F.”: Summary business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”H.V.A. Projects (100%)Pioneer ClientsWOW 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
BMW’s Designworks/USA: business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”>50% from outside work


G m the recruitment and development of top talent period v c bets on talent bets on projects period
G.M. business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.” = 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
Dept. Head I = business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”Sports G.M.Dept. Head II = V.C.


eHR*/PCC** business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”*All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM


Model psf
Model PSF … business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.”


(1) Translate ALL departmental business analysts and graduates, thousands of whom work at the U.S. conglomerate’s offshore service centers in India. They are the low-cost, high capability vanguard of GE’s outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India.” 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)


What do i do first one minute excellence thomas watson
What Do I “Do” First? company, ‘risk management’ is an overhead, not a revenue center. One Minute Excellence!**Thomas Watson


Culture Change is company, ‘risk management’ is an overhead, not a revenue center. 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!


6 the heart of the value added revolution psfs unbound the solutions imperative
6. The Heart of the Value Added Revolution: company, ‘risk management’ is an overhead, not a revenue center. PSFs Unbound/ The “Solutions Imperative.”


Base case the sameness trap
Base Case company, ‘risk management’ is an overhead, not a revenue center. :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, they are now more or less identical.”it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,”The New York Times


When we did it right it was still pretty ordinary barry gibbons on nightmare no 1
“When we did it ‘right’ it was still pretty ordinary.”Barry Gibbons on“Nightmare No. 1”


Fight ’til Death ordinary.”!“I thought, ‘What a dreadful mission I have in life.’ I’d love to get six-thousand restaurants up to spec, but when I do it’s ‘Ho-hum.’ It’s bugged me ever since. It’s one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we have created a plethora of ho-hum products and services. Just go fly in an airplane. It could be such an enlightening experience. Ho-hum. We swim in an ocean of ho-hum, and I’m going to fight it. I’m going to die fighting it.”— Barry Gibbons


“Customers will try ‘low cost providers’ … ordinary.”because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst


“The ‘surplus society’ has a surplus of ordinary.”similar companies, employing similarpeople, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordström and Jonas Ridderstråle, Funky Business


Funky Business ordinary.”: “To succeed we must stop being so goddamn normal. In a winner-takes-all world,normal = nothing.”


“We make over three new product announcements a day. Can you remember them? Our customers can’t!”Carly Fiorina


09 11 2000 hp bids 18 000 000 000 for pricewaterhousecoopers consulting business
09.11.2000 you remember them? : 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 That’s the price of entry.”: 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).


AT&T That’s the price of entry.”: 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 That’s the price of entry.”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


“Customer Satisfaction” to “Customer Success” That’s the price of entry.”“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


We want to be the air traffic controllers of electrons bob nardelli ge power systems
“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems


Keep in mind customer s atisfaction versus customer success
Keep In Mind electrons.”: Customer Satisfactionversus Customer Success


Nardelli’s goal ($50B to $100B by 2005) electrons.”: “… 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


E g utc otis carrier boxes to integrated building systems
E.g. … electrons.”UTC/Otis + Carrier: boxes to “integrated building systems”


Leased ac units of coolth
Leased AC electrons.”: Units of “Coolth”


Staples electrons.”New CEO Ron Sargent: 2X to $20B, in face of Wal*Mart (et al.) via delivery and other servicesSource: BusinessWeek/08.03


John deere landscapes this is our future
John Deere Landscapes: electrons.”“This is our future.”


“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)


“SCS”/Supply Chain Solutions of goods, information and capital that all the packages: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bankSource: Fast Company/02.04


“UPS used to be a trucking company with technology. Now it’s a technology company with trucks.”—Forbes, upon naming UPS “Company of the Year” in Y2000


“No longer are we only an insurance provider. it’s a technology company with trucks.” 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


“VISIONS OF A BRAND-NAME OFFICE EMPIRE. it’s a technology company with trucks.” 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 60 of 7b from marketing services
Omnicom organization, not just an ‘interior design’ firm.”: 60% (of $7B) from marketing services


And the Winners Are … organization, not just an ‘interior design’ firm.”Televisions –12%Cable TV service +5%Toys -10%Child care +5%Photo equipment -7%Photographer’s fees +3%Sports Equipment -2%Admission to sporting event +3%New car -2%Car repair +3%Dishes & flatware -1%Eating out +2%Gardening supplies -0.1%Gardening services +2%Source: WSJ/05.16.03


Ibm q3 10 15 03 rev 5 services consulting 11 software 5 hardware 5 pcs 2 technology chips 33
IBM/Q3/10.15.03/Rev: +5% organization, not just an ‘interior design’ firm.”Services/Consulting: +11%Software: +5%Hardware: -5%PCs: -2%Technology/Chips: -33%


Fees fees fees cover story bw 09 29 03
FEES! organization, not just an ‘interior design’ firm.”FEES!FEES!—Cover Story, BW/09.29.03


Turnkey Nation/s organization, not just an ‘interior design’ firm.”HP … Sun … Farmers Group … Northwestern Mutual Financial Network … IBM … AT&T … Ericsson … GE Power Systems … GE Industrial Systems … Ford … Siemens … Home Depot … Deere … UTC Otis … UTC Carrier … UPS … Springs Industries … RCI … Equity Office Properties … Omnicom … India … Singapore … Etc.


Core Logic organization, not just an ‘interior design’ firm.”: (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer Success.”


6a the solutions 25 no more silos no more stovepipes damn it
6A. The … organization, not just an ‘interior design’ firm.”Solutions25.**NO MORE “SILOS.” NO MORE “STOVEPIPES.” (DAMN IT.)


1. It’s the (OUR!) organization, stupid! organization, not just an ‘interior design’ firm.”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.


“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


Duh??? 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. … *: “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


12. All functions contribute equally—IS, HR, Finance, 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. … 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.” 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. … 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!


KEY WORDS 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. … : Partners with our Customers in creating Memorable, Value-addedSolutions/ Successes/ Experiences.WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.


Iv new business new brand
IV. NEW BUSINESS. NEW BRAND. 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. …


7 a world of scintillating experiences
7. A World of Scintillating “Experiences.” 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. …


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


“Club Med 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. … is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ”Source: Jean-Marie Dru, Disruption


“The [Starbucks] Fix” Is on … 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. … “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


“Guinness 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. … as a brand is all about community. It’s about bringing people together and sharing stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse


Experience: “Rebel Lifestyle!” 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. … “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


What can brown do for you
WHAT CAN BROWN DO FOR YOU? 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. …


“When Pete Rozelle ran the league, it was a football business and a good one. Now it’s truly an entertainment business.”—Paul Much, Investment Advisor


The experience ladder experiences services goods raw materials
The “Experience Ladder” business and a good one. Now it’s truly an entertainment business.”Experiences ServicesGoods Raw Materials


1940 business and a good one. Now it’s truly an entertainment business.”: Cake from flour, sugar (raw materials economy): $1.001955: Cake from Cake mix (goods economy): $2.001970: Bakery-made cake (service economy): $10.001990: Party @ Chuck E. Cheese (experience economy) $100.00


Message experience is the last 80 p s experience applies to all work
Message business and a good one. Now it’s truly an entertainment business.”:“Experience” is the “Last 80%”P.S.: “Experience” applies to allwork!


1940 business and a good one. Now it’s truly an entertainment business.”: Cake from flour, sugar (raw materials economy): $1.001955: Cake from Cake mix (goods economy): $2.001970: Bakery-made cake (service economy): $10.001990: Party @ Chuck E. Cheese (experienceeconomy) $100.00


Bob Lutz business and a good one. Now it’s truly an entertainment business.”:“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


Moving Companies Damage-control Professional”WSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and wine. An outfit in New York promises quick high-speed Internet hookup. And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui expert figure out the right spot. …”


Duet Damage-control Professional” … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family.” … “machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room” (complements Sub-Zero refrigerator and home-theater center)Source: New York Times Magazine/01.11.2004


Lan installation co to geek squad 2 to 30 minn
LAN Installation Co. Damage-control Professional”toGeek Squad(2% to 30%/Minn.)


From “Service’ to “Cause” Damage-control Professional”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.


“Car designers need to create a Damage-control Professional”story. Every car provides an opportunity to create anadventure. …“The Prowler makes yousmile. Why? Because it’s focused. It has aplot, a reason for being, apassion.”Freeman Thomas, co-designer VW Beetle; designer Audi TT


Hmmmm only words story adventure smile focus plot passion
Hmmmm(?): “Only” Words … Damage-control Professional”StoryAdventureSmile FocusPlotPassion


First step hire a theater director as a consultant or fte
First Step (?!) Damage-control Professional”: Hire a theater director, as a consultant or FTE!


Words Damage-control Professional”!— Magician of Magical Moments— Maestro of Moments of Truth— Recruiter of Raving Fans— Impresario of First Impressions— Wizard of WOW— Captain of Brilliant Comebacks— Director of Electronic Customer Experiences— Conductor of Customer Intimacy— King of Customer Community— Queen of Customer Retention— CEO of Ownership Experience— Managing Director of After-sales Experience


Experience cirque du soleil
Experience … Damage-control Professional”Cirque du Soleil


Do you measure up if not why not
DO YOU MEASURE UP?* Damage-control Professional”*If not, why not?


Cirque du Soleil Damage-control Professional”: Talent(12 full-time scouts,database of 20,000).R&D(40% of profits; 2X avg corp).Controls(shows are profit centers; partners like Disney offset costs; $100M on $500M). Scarcity builds buzz/brand(1 new show per year. “People tell me we’re leaving money on the table by not duplicating our shows. They’re right.”—Daniel Lamarre, president).Source: “The Phantasmagoria Factory”/Business 2.0/1-2.2004


“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
Extraction & Goods: Male dominance in the metaphysical world.Services & Experiences: Female dominance


Women don t buy brands they join them eveolution
“Women don’t buy brands. in the metaphysical world.They join them.”EVEolution


The experience ladder experiences services goods raw materials1
The “Experience Ladder” in the metaphysical world.Experiences ServicesGoods Raw Materials


Tg w vs tg r
<TG in the metaphysical world.Wvs.>TGR


Dell + IBM + Harley Davidson* = in the metaphysical world.Magic!*Frictionless throughout Supply-chain + EncompassingSolutions + Scintillating Experience


8 experiences embracing the dream business
8. Experiences+: in the metaphysical world. Embracing the “Dream Business.”


“A shipping clerk earning $25,000 a year treats herself to silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. Consumers today are willing to pay a significant premium for goods and services that are emotionally important to them and that deliver the perceived values of quality, performance and engagement.But in other categories that aren’t emotionally important, they become bargain hunters: a passionate Mercedes driver will shop at Target every weekend; a construction worker who splurges on a $3,000 set of Callaway golf clubs will buy store brand groceries.” —Trading Up: The New American Luxury/Michael Silverstein & Neil Fiske


DREAM silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. : “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 silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. “Dream” ProductsMaxwell House StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley-DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners PeleCNN MillionaireSource: Gian Luigi Longinotti-Buitoni


The marketing of Dreams (Dreamketing) silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. 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


Building the Creative Organization silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. 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


Constantly Magnify Perceived Value silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. 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


(Revised) silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. Experience LadderDreams Come True Awesome ExperiencesSolutionsServicesGoodsRaw Materials


Safe, On-time and ... silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. “We defined personality as a market niche. We seek to amaze, surprise, entertain.”— Herb Kelleher, SWA / LUV


Furniture vs. Dreams silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.”— Judy George, Domain Home Fashions


Horchow com furniture accessories dreams
HORCHOW.COM silk pajamas at Victoria’s Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. Furniture. Accessories. Dreams.


“The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”— from the Ritz-Carlton Credo


“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business


“In Denmark, eggs from free-range hens have conquered over 50 percent of the market. Consumers do not want hens to live their lives in small, confining cages. They are willing to pay 15 percent to 20 percent more for the story about animal ethics. This is classic Dream Society logic. Both kind of eggs are similar in quality, but consumers prefer eggs with the better story. After we debated the issue and stockpiled 50 other examples, the conclusion became evident: Stories and tales speak directly to the heart rather than the brain. After a century where society was marked by science and rationalism, the stories and values are returning to the scene.”—Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business


“Person 1 is the rational, planning being, and Person 2 is the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” —Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business


Six Market Profiles the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” 1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for CnvictionsRolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business


New Market Realities the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-BuitoniThe Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf JensenTrading Up: The New American Luxury, Michael Silverstein & Neil Fiske


9 the mostly ignored soul of experiences design rules
9. The the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” [Mostly Ignored] “Soul” of “Experiences”: Design Rules!


Design myths
Design Myths. the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.”


Unconventional design messages not about lumpy objects no t about 79 000 objects
Unconventional the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects


The the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” 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 no t about 79 000 objects1
Unconventional the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects


Design Transforms even the [Biggest] Corporations! the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” TARGET… “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)


Lady Sensor, Mach3, and … the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” $70M on developing the OralB CrossAction toothbrush23 patents, including 6 for the packagingSource: www.ecompany.com [06.00]


Design2002 listerine s pocketpaks
Design2002 the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” LISTERINE’s …PocketPaks


Westin s heavenly bed
Westin’s … the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” Heavenly Bed


Design s place in the universe
Design’s place in the universe. the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.”


And Tomorrow … the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” “Fifteen years ago companies competed on price. Now it’s quality.Tomorrow it’s design.”Robert Hayes


All Equal the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” 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
“Design is the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” treated like a religion at BMW.”Fortune


“The new the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” 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! the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” “Every now and then, a designcomes 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 the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” 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 fundamentalsoul of a man-made creation.”Steve Jobs


Check Out the Language: of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. “Tomorrow it’s design …”“Design is the only thing …”“Design is … religion ...”“Drop-dead charm …”“Object of desire …” “Passionate maniacs …” “Fundamental soul …”


Bottom line
Bottom Line. of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design.


Design is what why i love love
Design “is” … WHAT & WHY I LOVE. of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. LOVE.


I love my zyliss garlic peeler
I of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. LOVEmy ZYLISS Garlic Peeler!


All time no 1 tp ziplocs
All Time of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. No.1 (TP)Ziplocs


Design is why i get mad mad
Design “is” … WHY I GET MAD. of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. MAD.


Wanted the designer of my radio shack phone major reward
Wanted of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. : THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!


Design is never neutral
Design is of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. neverneutral.


Hypothesis design is the principal difference between love and hate
Hypothesis: 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 principaldifference between love and hate!


THE BASE CASE of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. : 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
Message (?????) of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. : Men cannot design for women’s needs.


“Perhaps the macho look can be interesting of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. … 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
Step No. 1: of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. NOTEBOOK POWER![Start recording the awesome & the awful]


User stop blaming yourself don norman design of everyday things
User … of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. STOP BLAMING YOURSELF!(Don Norman/Design of Everyday Things)


The Designer’s Ring of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. “For years I thought that Dante should have established a ‘designer’s ring’ in his Hell. If any designer’s product raised a blister, caused a bruise, ripped a stocking, or caused any of the thousand things that frustrate us with the products we use, that designer would be assigned the designer’s ring in Hell and forced to use that product for all of eternity.”— James Pirki, designer and professor, Syracuse University


“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


15 “Leading” Biz Schools It’s not road rage. It’s more like design rage.”Design/Core: 0Design/Elective: 1Creativity/Core: 0Creativity/Elective: 4Innovation/Core: 0Innovation/Elective: 6Source: DMI/Summer 2002


9a design beautiful systems
9A. Design+ = It’s not road rage. It’s more like design rage.”“Beautiful” Systems.


Fred s s mediocre thesis herb k s napkin
Fred S.’s It’s not road rage. It’s more like design rage.” “mediocre” thesis. Herb K.’s napkin.


Great design one page business plan jim horan
Great design = It’s not road rage. It’s more like design rage.”One-page business plan (Jim Horan)


The One-page Proposal: How to Get Your Business Pitch onto One Persuasive Page—Patrick Riley (“Why not one and a half? Why not two? Sorry, it’s one or nothing. Once the proposal extends past the first page, the battle is lost.”)


There Are Lawyers … and Then There Are Lawyers: John De Laney/ICMANYTHING TRULY IMPORTANT CAN BE BOILED DOWN TO 1/3RD PAGE.


K i s s gordon bell vax daddy 500 50 chas wang ca behind schedule cut least productive 25
K.I.S.S. Laney/ICM: 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
Systems Laney/ICM: Must have. Must hate. / Must design. Must un-design.


Mgt team includes evp s o u b
Mgt. Team includes … Laney/ICMEVP (S.O.U.B.)


E xecutive v ice p resident s tomping o ut u nnecessary b ullshit
E Laney/ICMxecutive Vice President, Stomping Out Unnecessary Bullshit


First steps beauty contest
First Steps: “Beauty Contest”! Laney/ICM

  • 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.


Beautiful aesthetic triumph breathtaking
“Beautiful” Laney/ICM“Aesthetic Triumph”“Breathtaking”


Was Laney/ICM“Deposits may be made by a minor and withdrawals thereof may be made by a minor without the consent of a parent or guardian, neither of whom, in that capacity, shall have any right to attach or interfere in any manner with such deposits or withdrawals.”


Is Laney/ICM“Minors may make deposits and withdrawals from their accounts without the consent or interference of a parent or guardian.”


Was Laney/ICM“This Grievance Procedure must be used if the nature of the complaint deals with the quality of services given to the Member, including complaints about waiting times, physician demeanor and behavior, or adequacy of facilities (as opposed to whether or not a particular service is a Covered service and what amount, if any, should be paid). Also, this Grievance Procedure will be applied under all circumstances to any Universal Healthcare supplemental products which the Member may have bought independently from this SeniorPlus plan. If the nature of the Member’s complaint deals with a Covered Service stated in this SeniorPlus or the level of payment associated with this plan, please refer to the Medicare Appeals procedure, stated in Section X.”Source: Siegel & Gale


Is Laney/ICM“If you have a complaint about quality of service received, waiting times, physician behavior, or the adequacy of medical facilities, please use our grievance process.“lf you have a complaint about coverage or payment, please use the Medicare Appeals procedure (see Section X).”Source: Siegel & Gale




Who are we
“WHO Laney/ICMARE WE?”


What s our story
“WHAT’S OUR Laney/ICMSTORY?”


“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


Message all business models are in fact brand statements
Message enlightens, Sony dreams, Benetton protests.: ALL ‘BUSINESS MODELS’ ARE IN FACT … BRAND STATEMENTS!


Do the housekeepers clerks buy it are you v e r y sure
DO THE enlightens, Sony dreams, Benetton protests.HOUSEKEEPERS & CLERKS “BUY IT”?[ARE YOU V-E-R-Y SURE?]


Exactly how are we dramatically different
enlightens, Sony dreams, Benetton protests.EXACTLY HOW ARE WE DRAMATICALLYDIFFERENT?”


1 enlightens, Sony dreams, Benetton protests.st Law Mktg Physics: OVERTBENEFIT(Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)2ND Law: REALREASONTOBELIEVE(Stand & Deliver!)3RD Law: DRAMATICDIFFERENCE(Execs Don’t Get It: See the next slide.)Source: Jump Start Your Business Brain, Doug Hall


2 Questions enlightens, Sony dreams, Benetton protests.:“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


“You do not merely want to be the best of the best. enlightens, Sony dreams, Benetton protests.You want to be considered the only ones who do what you do.”Jerry Garcia


“A great company enlightens, Sony dreams, Benetton protests. is defined by the fact that it is not compared to its peers.”Phil Purcell, Morgan Stanley


Brand = You Must enlightens, Sony dreams, Benetton protests.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


Why does it matter to the client
“WHY DOES IT enlightens, Sony dreams, Benetton protests.MATTER TO THE CLIENT?”


Exactly how do i passionately convey that dramatic difference to the client
enlightens, Sony dreams, Benetton protests.EXACTLY HOW DO I PASSIONATELYCONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ?”


enlightens, Sony dreams, Benetton protests.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!


Rules of “Radical Marketing” enlightens, Sony dreams, Benetton protests.Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!Celebrate Craziness!Be insanely True to the Brand!Sam Hill & Glenn Rifkin, Radical Marketing(e.g., Harley, Virgin, The Dead, HBS, NBA)


Branding: Is-Is Not “Table” enlightens, Sony dreams, Benetton protests.TNT is not: TNT is: TNT is not:Juvenile Contemporary Old-fashionedMindless Meaningful ElitistPredictable Suspenseful DullFrivolous Exciting SlowSuperficial Powerful Self-important


Message is not is
Message … enlightens, Sony dreams, Benetton protests.Is Not >> Is


“Salt is salt is salt. Right? Not when it comes in a enlightens, Sony dreams, Benetton protests.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


What Can [Can’t] Be Branded? enlightens, Sony dreams, Benetton protests.“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 markets
V. NEW BUSINESS. NEW enlightens, Sony dreams, Benetton protests. MARKETS.


11 trends worth trillion i women roar
11. Trends Worth Trillion$$$ I: enlightens, Sony dreams, Benetton protests.Women Roar.


????????? enlightens, Sony dreams, Benetton protests.Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%D.I.Y. (major “home projects”) … 80%Consumer Electronics … 51%Cars … 68% (90%)Allconsumerpurchases … 83%Bank Account … 89%Household investment decisions … 67%Small business loans … 70%Health Care … 80%


???? enlightens, Sony dreams, Benetton protests.80%


Riding lawnmowers
Riding Lawnmowers enlightens, Sony dreams, Benetton protests.


2/3rds enlightens, Sony dreams, Benetton protests. working women/50+% working wives > 50%80% checks61% bills53% stock (mutual fund boom)43% > $500K95% financial decisions/ 29% single handed


1970-1998 enlightens, Sony dreams, Benetton protests.Men’s median income: +0.6%Women’s median income: + 63%Source: Martha Barletta, Marketing to Women


5 t japan 10m 28m 3 6t germany
$5+T enlightens, Sony dreams, Benetton protests.> Japan10M/28M/$3.6T> Germany


Business Purchasing Power enlightens, Sony dreams, Benetton protests.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
Women-owned Bus. enlightens, Sony dreams, Benetton protests.U.S. employees > F500 employees worldwideSource: Martha Barletta, Marketing to Women


New golfers 37 basketball 13 5m 1 in 27 70 1 in 3 96
New golfers … 37% enlightens, Sony dreams, Benetton protests.Basketball … 13.5M1 in 27 (’70) … 1 in 3 (’96)


1874? enlightens, Sony dreams, Benetton protests.


1874 jock strap 1977 jogbra 1977 25k 1996 42 m
1874 … Jock Strap enlightens, Sony dreams, Benetton protests.1977 … Jogbra1977 ... 25K1996 … 42M


Yeow 1970 1 2002 50
Yeow! enlightens, Sony dreams, Benetton protests.1970 … 1%2002 … 50%


91% enlightens, Sony dreams, Benetton protests. 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/ enlightens, Sony dreams, Benetton protests.In a Different VoiceMen: Get away from authority, familyWomen:ConnectMen: Self-orientedWomen:Other-orientedMen: RightsWomen:Responsibilities


Men enlightens, Sony dreams, Benetton protests.: 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 enlightens, Sony dreams, Benetton protests./ 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


How Many Gigs You Got, Man? True?”“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 True?”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)


Women as Healthcare Decision Makers True?”— read vociferously— want choices— value convenience— look for small signs of sensitivity (gowns that close)Source: Cheryl Stone, Rynne Marketing Group


Women and Healthcare True?”— Women are more dissatisfied— Women are frustrated by the way they are treated and spoken to by physicians— Women seek more information— Women are more pressed for time— Women make most healthcare decisions and purchasesSource: Patricia Braus, Marketing Health Care to Women


Women and Financial Advisors True?”Women want ...— a plan— to be listened to— to read about it and think about itWomen do not want ...— a high-pressure sales pitchSource: Kathleen Boyd, SVP, Wheat First Butcher Singer (now part of Wachovia Securities)


Read this barbara allan pease s why men don t listen women can t read maps
Read This True?”: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% 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. : “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 what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. 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. what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. More “contextual,” “holistic.”“People powered”: Age 3 days, baby girls 2X eye contact. Source: Martha Barletta, Marketing to Women


“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


Stress friends; but an upset man rebuilds a motor or fixes a leaking tap.”* **Men: Fight or fleeWomen: Seek the company of friends*Source: UCLA, “Female Response to Stress: Tend and Befriend, Not Fight or Flight”/Psychological Review**90% of stress research: men


“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


“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


“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


“Women are more comfortable talking or thinking about people and relationships, while men prefer to contemplate things.”—research reported in the New York Times (08.10.2003)


Editorial men tables rankings editorial women narratives that cohere redwood uk
Editorial/Men people and relationships, while men prefer to contemplate things.”: Tables, rankings.*Editorial/Women: Narratives that cohere.**Redwood (UK)


“Where the Girls Are: They’re Online, Solving Puzzles and Making Up Characters in Narrative-driven Games” —Headline/WSJ/10.28


Initiate Purchase and Making Up Characters in Narrative-driven Games” Men: Study “facts & features.”Women: Ask lots of people for input.Source: Martha Barletta, Marketing to Women


Read this book eveolution the eight truths of marketing to women faith popcorn lys marigold
Read This Book … and Making Up Characters in Narrative-driven Games” EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys Marigold


Eveolution truth no 1 connecting your female consumers to each other connects them to your brand
EVEolution and Making Up Characters in Narrative-driven Games” : Truth No. 1Connecting 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 … When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”“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 When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”“In 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 ‘let’s 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


Women don t buy brands they join them eveolution1
“Women don’t buy brands. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”They join them.”EVEolution


Purchasing Patterns When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”Women: Harder to convince; more loyal once convinced.Men: Snap decision; fickle.Source: Martha Barletta, Marketing to Women


2 6 vs 21
2.6 When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”vs.21


Cents & Sensibility When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” “Our advisory sessions [with women] changed from a purely analytical, male approach to something that starts with the heart and ends with the figures.”


Lowe s gets it 1989 13 lumber shop 2002 50
Lowe’s When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” … Gets it. 1989: 13%/“lumber shop” … 2002: >50%


“War has broken out over your home-improvement dollar, and Lowe’s has superpower Home Depot on the defensive. It’s not-so-secret ploy: Lure women.”—Forbes.com


“Home Depot is still very much a guy’s chain. But women, according to Lowe’s research, initiate 80 percent of all home-improvement purchase decisions, especially the big ticket orders like kitchen cabinets, flooring and bathrooms. ‘We focused on a customer nobody in home improvement has focused on. Don’t get me wrong, but women are far more discriminating than men,’ says CEO Robert Tillman, 59, a Lowe’s lifer.” —Forbes.com


“Women’s Work: Do-it-yourself has become do-it-herself, and toolmakers are taking notice”—Headline/San Francisco Chronicle/08.03


Tomboy tools e g smaller lighter in weight tupperware party model
Tomboy Tools and toolmakers are taking notice”. E.g.: smaller, lighter in weight. Tupperware “party” model.


“Darcy Winslow is a leading figure in Nike Goddess, a companywide grassroots team whose goal is a once-and-for-all shift in how a high-testosterone outfit sells to, designs for, and communicates with women.”—Fast Company/08.2002


“Women weren’t comfortable in our stores. So I figured out where they would be comfortable—most likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have furniture, not fixtures. Above all, I didn’t want it to be girlie.” —John Hoke, designer, Nike


Yes!: “Crest Spinoff Targets Women”—cover story, out where they would be comfortable—most likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have furniture, not fixtures. Above all, I didn’t want it to be girlie.” Ad Age/06.03.02Crest 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.”


“Volvo Teams Up to Build What Women Want: Concept Car Goes for Great Storage, Easy Maintenance”—headline/USA Today/12.16.2003/140-person team;80% women


Not year of the woman
Not for Great Storage, Easy Maintenance”!“Year of the Woman”


Enterprise Reinvention! for Great Storage, Easy Maintenance”RecruitingHiring/Rewarding/PromotingStructure ProcessesMeasurementStrategyCulture VisionLeadershipTHE BRAND ITSELF!



STATEMENT OF PHILOSOPHY to be looking at a car like this?”: 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 thatwomen’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


Not a Morality Play to be looking at a car like this?”“It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We’re marketing to women entrepreneurs because it is a huge opportunity.”— Cherie Piebes


27 March 2000: email to TP from to be looking at a car like this?” 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!”


“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


Psssst wanna see my porn collection
Psssst! we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. Wanna see my “porn” collection?


Norwegian law boards must have at least 40 women
Norwegian Law we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. : Boards must have at least 40% women.


Ass Of The Year2002 we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. : 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 we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way”PresentingExperts: M = 16;F = ?? (94% = 272)


0 we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him.


Stupid we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. : “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!”


Customer is king 4 440 customer is queen 29 source steve farber google search 04 2002
“Customer is King”: we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. 4,440“Customer is Queen”: 29Source: Steve Farber/Google search/04.2002


F y i
F.Y.I. we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him.


“Women Beat Men at Art of Investing” we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. 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)


Investment Club Returns we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. Women-only clubs 1997 … 17.9%Mixed … 17.3%Men-only … 15.6%Source: National Assoc. Investors


Value Line we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. : Top State* Investment Clubs 20008 … All male19 … Coed22 … All FEMALE* VT & Maine not included; D.C. included


JBQ: Stop Treating Women Investors Like Idiots! we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. “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 we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. --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


1. Men and women are different. we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. 2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.


12 trends worth trillion ii boomer bonanza godzilla geezer
12. Trends Worth Trillion$$$ II: we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. Boomer Bonanza/ Godzilla Geezer.


Subject marketers stupidity it s 18 44 stupid
Subject: Marketers & Stupidity we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. “It’s 18-44, stupid!”


Subject marketers stupidity or is it 18 44 is stupid stupid
Subject: Marketers & Stupidity we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. Or is it:“18-44 is stupid, stupid!”


2000 2010 stats 18 44 1 55 21 55 64 47
2000-2010 Stats we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. 18-44: -1%55+: +21%(55-64: +47%)


44-65 we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. : “New Consumer Majority” **45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder


“The New Consumer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.”—David Wolfe & Robert Snyder, Ageless Marketing


“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers”—David Wolfe and Robert Snyder, Ageless Marketing


Aging elderly i m in charge
Aging/“Elderly” Marketers”$$$$$$$$$$$$“I’m in charge!”


“NOT ACTING THEIR AGE Marketers”: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?”USN&WR Cover/06.01


Sixty is the new thirty cover aarp 11 03
“Sixty Is the New Thirty” Marketers”—Cover/AARP/11.03


50+ Marketers”$7T wealth (70%)/$2T annual income50% all discretionary spending79% own homes/40M credit card users41% new cars/48% luxury cars$610B healthcare spending/74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21stCentury 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
Read This! that once someone hits middle age he’s too set in his ways to be susceptible to advertising. … 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


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?”Elderly”— Purchase “experiences” more than just “things” — Convenience / Comfort / Access / Need to be appreciated = Top PrioritiesSource: Ken Dychtwald, Age Wave


Possession 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?” Experiences /“Desires for things”/Young adulthood/to 38Catered Experiences/ “Desires to be served by others”/Middle adulthoodBeing Experiences/“Desires for trancendany experiences”/Late adulthoodSource: David Wolfe and Robert Snyder/Ageless Marketing


POSSESSION EXPERIENCE: 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?”New car, home entertainment system, new boat, first home …CATERED EXPERIENCE: Thrilling theater performance, experience of playing on an exclusive golf course, throwing a highly successful catered party …BEING EXPERIENCE: Heading up a charity ball, helping a young person master a problem, learning an exciting new thing …Source: David Wolfe and Robert Snyder, Ageless Marketing


“Catered experiences more likely say ‘We have arrived!’ They mark the first stage of being someone versus becoming someone.”Source: David Wolfe and Robert Snyder, Ageless Marketing


“ ‘Age Power’ arrived!’ They mark the first stage of 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
No arrived!’ They mark the first stage of : “Target Marketing”Yes:“Target Innovation” & “Target DeliverySystems”


“The baby-boom generation is the first wellness generation.”—Paul Zane Pilzer/The Wellness Revolution: The Next Trillion Dollar Industry


Wellness = $$$$$$$$ generation.”Currently $200B, $1T by 2013(Source: Paul Zane Pilzer, The Wellness Revolution: The Next Trillion Dollar Industry)


And …. generation.”


Hispanics 38 5 growth 1990 2000 vs 9 3 overall source communispace 2003
Hispanics generation.”: 38.5% growth, 1990-2000, vs. 9.3% overall**Source: Communispace/2003


“Relative to the demand, the success stories are pitifully few”—Andrew Nuttney, Research Director, The Research & Advisory Group; on marketing effectively to Hispanics


“BofA Is Betting Its Future on the Hispanic Market” few” *“We expect to get no less than80 % of our future growth in retail banking from the Hispanic market.” —Ken Lewis, CEO, BofA*Fortune/04.2003


Duh! few”“We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood it’s in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. That’s what Super Saver is. All the signage is in both languages. There’s a 100 percent Spanish-speaking staff in the store.”—Larry Johnston, CEO, Albertsons


Marketing to Women, few”Martha BarlettaEVEolution: The Eight Truths of Marketing to Women,Faith Popcorn & Lys MarigoldAgeless Marketing,David Wolfe & Robert SnyderMarketing to the Mindset of Boomers and Their Elders,Carol Morgan & Doran LevySelling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-BuitoniThe Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf JensenTrading Up: The New American Luxury, Michael Silverstein & Neil Fiske




Your Current Project? few”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
Measures few”

  • WOW!

  • Beauty!

  • Raving Fans!

  • Impact!


Legacy
Legacy few”!


TP few”: “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
Language few”matters!Wow! BHAG! “Takes your breath away!”


Astonish me s d build something great h y immortal d o
“Astonish me!” few” / S.D.“Build something great!” / H.Y.“Immortal!” / D.O.


Let s make a dent in the universe steve jobs
few”Let’s make a dent in the universe.”Steve Jobs


Reward excellent failures punish mediocre successes phil daniels sydney exec
few”Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec


14 wow projects for the powerless a surefire recipe
14. WOW Projects few” for the “Powerless”: A Surefire Recipe.


Topic boss free implementation of stm stuff that matters
Topic: few”Boss-free Implementation of STM/Stuff That MATTERS!


World s biggest waste selling up
World’s Biggest Waste … few”Selling “Up”


The idea model f4 f ind a f ellow f reak f araway
THE IDEA: few”Model F4Find a FellowFreak Faraway


F2f k2k 1@t r f a freak to freak kook to kook one at a time ready fire aim
F2F [email protected]/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
And … few”K2KK*S2SS***Kook to Kooky Kustomer**Skunk to Scintillating Supplier


Bottom line the enemy
BOTTOM LINE few”The Enemy!


Joe j jones 1942 2003 he woulda done some really cool stuff but his boss wouldn t let him
Joe J. Jones few”1942 – 2003 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!


Characteristics of the “Also rans” few”*“Minimize risk”“Respect the chain of command”“Support the boss”“Make budget”*Fortune, article on “Most Admired Global Corporations”


Kurt carlson to young marilyn carlson if you don t like sunday school change it she did
Kurt Carlson to young Marilyn Carlson: few”“If you don’t like Sunday School, change it!” (She did.)



The greatest danger few”for most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo


To be somebody or to do something boyd the fighter pilot who changed the art of war robert coram
“To few”Be somebody or to Do something”BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)



The Sales25 few”: 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
It’s politics, stupid! few”(Play or sit on the sidelines.)


Great Salespeople … few”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 … few”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 … few”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!


15 boss work demos heroes stories or starting a wow projects epidemic
15. Boss Work: few” Demos, Heroes, Stories … Or: Starting a WOW Projects Epidemic.


Premise ordering systemic change is a stupid waste of time
Premise few”: “Ordering” Systemic Change is a Stupid Waste of Time!


Demos heroes stories
Demos! few” Heroes! Stories!


Culture of Prototyping few”“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
Think about It!? few”Innovation = Reaction to the PrototypeMichael Schrage


He who has the quickest o o d a loops wins observe orient decide act col john boyd
He who has the quickest few”O.O.D.A. Loops* wins!*Observe. Orient. Decide. Act. / Col. John Boyd


“Find something small that you can turn around. few” If you’re on a 9-game losing streak, you need to start with one great inning.”—Rudy


Shell few”Game Changer10% of technical budget “set aside and used to fund promising but nontraditional ideas through a staged funding process similar to that used by venture capitalists” Source: Financial Times/08.2003


Demo = Story few”“A key – perhaps the key – to leadership is the effective communication of a story.”Howard Gardner, Leading Minds: An Anatomy of Leadership


Mb s a managing by story ing around david armstrong
MB few”SA!**Managing By Story-ing Around/David Armstrong


“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/ Lessons from an Uncivil Servant


REAL Org Change fix them.: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, Lessons from an Uncivil Servant


Jkc 1 scour for renegades wine dine 2 go outside for funds
JKC fix them.1. Scour for renegades; wine & dine.2. Go outside for funds.


Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules


Vii new business new you
VII. NEW BUSINESS. NEW YOU. “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules


16 re inventing the individual welcome to a brand you world
16. Re-inventing the Individual: Welcome to a “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s RulesBrand You World


“infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s RulesWhat 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” “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules 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


In Store: guaranteed success story, but you can give people the tools to make the most of their own lives.”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


New World of Work guaranteed success story, but you can give people the tools to make the most of their own lives.”< 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


“The Creative Class derives its identity from its members’ roles as purveyors of creativity. Because creativity is the driving force of economic growth, in terms of influence the Creative Class has become the dominant class in society.” —Richard Florida, The Rise of the Creative Class (38M, 30%)


Just got laid off hire yourself cover story forbes 12 may 2003
“JUST GOT LAID OFF? HIRE YOURSELF!” members’ roles as purveyors of creativity. Because creativity is the driving force of economic growth, in terms of influence the Creative Class has become the dominant class in society.” —Cover story, Forbes, 12 May 2003


“If there is nothing very special about your work, members’ roles as purveyors of creativity. Because creativity is the driving force of economic growth, in terms of influence the Creative Class has become the dominant class in society.” 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


Tim monich the man hollywood turns to for the right accent source boston globe 01 25 2004
TIM MONICH: “the man Hollywood turns to for the right accent”Source: Boston Globe/01.25.2004


“Self-reliance never comes ‘naturally’ to adults because they have been so conditioned to think non-authentically that it feels wrenching to do otherwise. … Self Reliance is a last resort to which a person is driven in desperation only when he or she realizes ‘that imitationissuicide, that he must take himself for better, for worse, as his portion.’ ”—Lawrence Buell, Emerson


Minimum New Work because they have been so conditioned to think non-authentically that it feels wrenching to do otherwise. … SurvivalSkillsKit2003MasteryRolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial InstinctCEO/Leader/Businessperson/CloserMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal


Sam s secret 1
Sam’s Secret #1! because they have been so conditioned to think non-authentically that it feels wrenching to do otherwise. …


Minimum New Work because they have been so conditioned to think non-authentically that it feels wrenching to do otherwise. … SurvivalSkillsKit2003MasteryRolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial InstinctCEO/Leader/Businessperson/CloserMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal


Thriving in 24/7 because they have been so conditioned to think non-authentically that it feels wrenching to do otherwise. … (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.”


“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. until 1750, 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 until 1750,


3 weeks in may training prep 187 work 41 other 17
3 Weeks in May until 1750, “Training” & Prep: 187“Work”: 41(“Other”: 17)


1 vs 367
1% until 1750, vs.367%


Divas until 1750, 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?


Prep until 1750, : 1 hour per 1 minute (WSC) “Forget ‘practice makes perfect.’ Substitute ‘perfect practice makes perfect.’ ” (TT) “Major difference between ‘best’ and ‘average’? ‘Best’ get as much pleasure from practice as performance.” —Ben Zander


Edward Jones’ Training Machine until 1750, *146 hours/employee/yearNew hires: 4X avg.3.8% of payroll* #1, “The 100 Best Companies To Work For”/Fortune/01.2003


R d a rate 15 25 therefore formal investment strategy r i p
R.D.A. until 1750, Rate: 15%?, 25%?Therefore: Formal “Investment Strategy”/R.I.P.


Invent reinvent repeat source hp banner ad
Invent until 1750, . Reinvent. Repeat.Source: HP banner ad


Personal brand equity evaluation
Personal until 1750, “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 discerniblydifferentfrom 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
T.T.D./Assignment until 1750, Construct a 1/8-page or 1/4-page ad for Brand You … for theYellow Pages


The Rule of Positioning until 1750, “If you can’t describe your position in eight words or less, you don’t have a position.”— Jay Levinson and Seth Godin, Get What You Deserve!


You are the storyteller of your own life and you can create your own legend or not isabel allende
“You are the storyteller of your own life, and you can create your own legend or not.”Isabel Allende



The i work for a company called me street journal adventures in capitalism
THE fashion themselves.”I work for a company called Me STREET JOURNALAdventures in Capitalism


The rise up and flee your cubicle street journal adventures in capitalism
THE fashion themselves.”rise up and flee your cubicle STREET JOURNALAdventures in Capitalism


Bill parcells world brand you world blame nobody expect nothing do something ny post 9 99
Bill Parcells’ World/ fashion themselves.”Brand You World!BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!NY Post (9/99)


Emerson
Emerson fashion themselves.”


“For Marx, the path to social betterment was through collective resistance of the proletariat to the economic injustices of the capitalist system that produced such misshapenness and fragmentation.For Emerson, the key was to jolt individuals into realizing the untapped power of energy, knowledge and creativity of which all people, at least in principle, are capable. He too hated all systems of human oppression; but his central project, and the basis of his legacy, was to unchain individual minds.”—Lawrence Buell, Emerson


“Emerson presupposes a state of of timid, unhappy conformity. By adulthood, people are conditioned to look through other people’s eyes. … So the first move is to disengage yourself fom the influence of others’ opinions. Emerson biographer Robert Richardson calls this ‘ground won back from dependency.’ … The second step involves trusting instinct more and reasoned judgment less, because at the level of laborious formal argument you’re liable to become mastered by forces alien to yourself.”—Lawrence Buell, Emerson


“Though everyone falls short of self-realization much of the time, everyone has self-transformative capacity.”—Lawrence Buell, Emerson


In all my lectures i have taught one doctrine the infinitude of the private man r w emerson
“In all my lectures, I have taught one doctrine, the infinitude of the private man.”—R. W. Emerson


Every actual state is corrupt good men must must not obey the laws too well r w emerson
“Every actual State is corrupt. Good men must must not obey the laws too well.”—R. W. Emerson


17 boss job one the talent obsession
17. Boss Job One: obey the laws too well.”The Talent Obsession.


“When land was the scarce resource, nations battled over it. The same is happening now for talented people.”Stan Davis & Christopher Meyer, futureWEALTH