tom peters re imagine business excellence in a disruptive age 02 07 2004
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Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age 02.07.2004. Slides at … tompeters.com. I. NEW BUSINESS. NEW CONTEXT.

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Presentation Transcript
slide4

“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

slide8

“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

slide11
“14MILLION service jobs are in danger of being shipped overseas”—The Dobbs Report/USN&WR/11.03/re new UCB study
slide12

“One Singaporean workercosts as much as …3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/08.18.03

slide13

“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

slide14

--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
slide16

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

slide17
“Either we modernize or we will be modernized by the unremitting force of the markets.”—Gerhard Schroeder
slide19

<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

slide20

Vernor Vinge/Mr. Singularity“The transition time from human history to post-human singularity time, Vinge thinks, will be astonishingly short—maybe one hundred hours from the first moment of computer self-awareness to computer world conquest.”—Esquire/12.2002

slide21

“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

slide22
“I genuinely believe we are living through the greatest intellectual moment in history.”Matt Ridley, Genome
slide23

“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]

slide24

“A California biotechnology company 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

slide25

Sequenom/David Ewing Duncan/Wired11.02“Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification process.” “This, I’m told, is the first time a healthy human has ever been screened for the full gamut of genetic-disease markers.” “On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests.” “You can’t look at humanity separate from machines; we’re so intertwined we’re almost the same species, and the difference is getting smaller.”

slide26

“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

slide27

“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

slide28

“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

slide31

“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)

slide32

“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

slide35

“China has become a manufacturing hub for the rest 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

slide36

1990-2003: 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

slide37

1998-2003: 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

slide38

50% 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

slide39

Population growth = 1%; 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

slide40
200 cities with >1,000,000 population.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
slide41

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

slide42
397,000,000 fixed phone lines = 90X since 1989.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
slide43

2003: 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

slide44

“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: U.S.A., 21%; EU, 16%; China, 13% (2X since1991)Source: New York Times/12.14.2003
slide46

“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

slide48

“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

slide49

“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

slide50

“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

slide51
The Breaking of Nations: Order and Chaos in the Twenty-first CenturyRobert Cooper (as interpreted by Tom Peters)
slide52

“This is a dangerous world and 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

slide53

“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

slide54

“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

slide55

“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

slide57

“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

slide59

“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

slide60

“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

slide61

“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …“Al-Qaeda represents a new and profoundly dangerous kind of organization—one that might be called a ‘virtual state.’ On September 11 a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

slide62

“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

slide64

“Our military structure today is essentially one developed and designed by Napoleon.”Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

slide65

“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.

slide66

“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)

slide67

“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

slide68

“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

slide69

“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

slide70

The New Infantry Battalion/New York Times/12.01.2002“Pentagon’s Urgent Search for Speed.” 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. “Every soldier is a sensor.” “Revolutionary capabilities.” Find-to-hit: 45 minutes to 15 minutes … in just one year.

slide71

“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

slide72
Eric’s ArmyFlat.Fast.Agile.Adaptable.Light … But Lethal.Talent/ “I Am an Army of One.”Info-intense.Network-centric.
slide74

“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

slide75

“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)

slide76

“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

slide78

OODA Loop/Boyd Cycle“Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD)BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

slide79

“Fast Transients”“Buttonhook turn” (YF16: “could flick from one maneuver to another faster than any aircraft”)BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

slide80

“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)

slide81

F86 vs. MiG/Korea/10:1Bubble 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)

slide83

Thunder Run/3rd 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 “Strategy meetings needed several times a week”

Source: New York Times on Meg Whitman/eBay

slide86

“There will be more 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

slide87

“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

slide88

“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

slide91

I Believe …1. Change will accelerate. DRAMATICALLY.2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS.(Business … Health Care … Politics … War … Education … Fundamentals of Human Interaction.)3. OPPORTUNITIES are matchless.4. You are either …ON THE BUS … or … OFF THE BUS.5. I WANT TO PLAY! ANDYOU?

slide92

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.

slide93

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

slide94

“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

slide96
“It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control
slide98

“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

slide99

Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

slide100

“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

slide102

Rate of Leaving F5001970-1990: 4XSource: The Company, John Micklethwait & Adrian Wooldridge (1974-200: One-half biggest 100 disappear)

slide103
“Far from being a source of comfort, bigness became a code for inflexibility.”—John Micklethwait & Adrian Wooldridge, The Company
slide104

“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

slide105
Forget>“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock
slide106
Success Kills!“The more successful a company, the flatter its forgetting curve.”— Gary Hamel and C.K. Prahalad
slide107

“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

slide109

“MERGERS: Why Most Big Deals Don’t Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.”—BusinessWeek/10.14.2002

slide110

Market Share, Anyone?— 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

slide111
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
slide112

“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

slide113

“Survival of the Fittest Not the Fattest”/John Kay/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.”

slide114

Lessons from the Bees!“Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What the bees are telling us is that the corporate world has got it all wrong.”David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK]

slide115

“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

slide116

TP on Acquisitions1. 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.

slide119

“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 secret of fast progress is inefficiency fast and furious and numerous failures kevin kelly
“The secret of fast progress is inefficiency, fast and furious and numerous failures.”Kevin Kelly
slide122

RM: “A lot of companies in the Valley fail.”RN: “Maybe not enough fail.”RM: “What do you mean by that?”RN: “Whenever you fail, it means you’re trying new things.”Source: Fast Company

slide123

“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)

slide124

“... 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

slide125

Silicon Valley Success [Failure?] Secrets“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpotSource: The Economist

slide126

Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen.Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity … in discontinuous/ambiguous times.

organize for performance customer satisfaction disorganize for renewal innovation
“Organize” for … performance & customer satisfaction.“Disorganize” for … renewal & innovation.
slide128

“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

slide129

Japan’s Science Gap *Rice farming culture: uniqueness suppressed. Gov’t control of R & D. Promotion based on seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. “bold leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe: “What we need to create is job insecurity rather than security to make people compete more.”*Hideki Shirakawa, Nobel laureate, chemistry

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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.”

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“The Word(s)” on Vitality: Gary Hamel“Sell By” [jettison old crap]Spin Out [support entrepreneurs]Spin In [buy young firms]
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Just Say No …“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
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“intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.”
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Herman Melville on JPJ: “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

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Huh?“Humility: The Surprise Factor in Leadership … bosses with Gung-ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/re JCollins/10.03

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Good to Great: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo
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Good to Great: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo
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Good to Great: “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%)

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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 …

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Built to Last v. Built to Flip“The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.”“Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.”Fast Company

warren bennis patricia ward biederman organizing genius great groups don t last very long
Warren Bennis & Patricia Ward Biederman/ Organizing Genius:Great Groups Don’t Last Very Long!
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Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

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“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)

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“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

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“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

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Jane Jacobs:Exuberant Varietyvs. the Great Blight of Dullness. F.A. Hayek:Spontaneous Discovery Process.Joseph Schumpeter: theGales of Creative Destruction.

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Huh?“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”)

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“Humble” Pastels?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

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“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
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“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”—Arthur Koestler on Galileo
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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 …

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Jim Collins vs. Michael Maccoby“quiet, workmanlike, stoic”vs. “larger-than-life leaders”/ “egoists, charmers, risk-takers with big visions”: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates

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“In Tom’s world it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003

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The Re-imagineer’s Credo … or, 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

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“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”

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“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)

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“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)

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“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)

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“Supply Chain” 2000:“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.”Red Herring (09.2000)

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“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

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“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

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eRevolution40,000,000Americans (1 of 2 singles/40% of American adults) went to an online matchmaking site last month (USN&WR/09.29.03)
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“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.”)

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“MIT Everywhere: 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

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“A Big Electronics Show, the Buzz Is All About Connections” —headline, New York Times/ 01.13.2003/ Consumer Electronics Show
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m-“On” or Out of the Loop“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

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Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

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WebWorld = EverythingWeb 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

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

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Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.

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“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

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The New Infantry Battalion/New York Times/12.01.2002“Pentagon’s Urgent Search for Speed.” 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. “Every soldier is a sensor.” “Revolutionary capabilities.” Find-to-hit: 45 minutes to 15 minutes … in just one year.

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“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

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“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

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[ 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]

anne busquet american express not age of the internet is age of customer control
Anne Busquet/ American ExpressNot: “Age of the Internet”Is: “Age of Customer Control”
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“The Web enables total transparency.People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.”Kjell Nordström and Jonas Ridderstråle, Funky Business

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“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

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“A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumers—raising their expectations and, in many cases, handing them the controls. [Healthcare] consumers are driving radical, fundamental change.”Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

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Welcome to 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

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No! No! No!FT: “The aim [of CRM] is to make customers feel as they did in the pre-electronic age when service was more personal.”
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CGE&Y (Paul Cole): “Pleasant Transaction” vs.“Systemic Opportunity.”“Better job of what we do today” vs.“Re-think overall enterprise strategy.”

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Here We Go Again: 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

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Steel: 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

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Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of Lund/SW) : 620. Lars Edenbrandt’s software: 738.*Only this time it matters!

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Probable parole violations: Simple model (age, # of previous offenses, type of crime) beats M.D. shrinks. 100 studies: Statistical formulas > Human judgment. “In virtually all cases, statistical thinking equaled or surpassed human judgment.”—Atul Gawande, Complications

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“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

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

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Ford: “Vehicle brand owner”(“design, engineer, and market, but not actually make”)Source: The Company, John Micklethwait & Adrian Wooldridge

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“P&G Hires Out Employee Services to IBM”—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)

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“WHERE IS YOUR JOB GOING”: 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

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“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)
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“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

answer psf professional service firm department head to managing partner hr is etc inc
Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.
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“P.S.F.”: SummaryH.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!

g m the recruitment and development of top talent period v c bets on talent bets on projects period
G.M. = The Recruitment and Development of Top Talent. [Period!]V.C. = Bets on “Talent.” Bets on Projects. [Period!]
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eHR*/PCC***All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

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(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.(3)Non-awesome are outsourced (75%??).(4)Remaining “Centers of Excellence” are retained & leveraged to the hilt!

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“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)

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Culture Change is not “Corporate.”Culture Change is not a “Program.”Culture Change does not take “Years.”Culture Change does not start “Today.”Culture Change starts Right Now!Culture Change Lives in the Moment!Culture Change is Entirely in Your Hands!

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“Companies have defined so much ‘best practice’ that they are now more or less identical.”Jesper Kunde, Unique Now ... or Never
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“While everything may be better, 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”
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Fight ’til Death!“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

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

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“The ‘surplus society’ has a surplus of 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

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Funky Business: “To succeed we must stop being so goddamn normal. In a winner-takes-all world,normal = nothing.”
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“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: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!
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“These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard
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Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B.Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

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AT&T: President David Dorman: Back to long distance … but with “bundles of lucrative corporate services” for the likes of Merrill Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers (50%)—hold on to high enders.Source: BW/05.20.2002

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Is There a There There: The Ericsson Case1. 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

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“Customer Satisfaction” to “Customer Success”“We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems

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
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Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.”E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”).Source: USA Today/06.14.2002

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

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“SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bankSource: Fast Company/02.04

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“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

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“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group

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“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.” –New York Times (12.16.2001)

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“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.”SMPS Exec
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“We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm.”Jean Bellas, founder, SPACE (from SMPS Marketer)

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And the Winners Are …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%Services/Consulting: +11%Software: +5%Hardware: -5%PCs: -2%Technology/Chips: -33%
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Turnkey Nation/sHP … 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.

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Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer Success.”
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1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.)9. Solutions = “Our ‘culture.’ ”10. Partner with B.I.C. (Best-In-Class). Period.

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“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.

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“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

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Duh???*: “We’ve come up with a solution. … We’ve begun to create a form of communications that is much better than we had before, and that’s allowed us to gather better data. We’ve finally realized that we have an interplay with other hospitals and with pre-hospital.”—Dr. Ben Honigman, ER, U. Colorado Hospital, on “diverts” (Denver Post/05.05.02)*Internet + Data + Open data exchange + Barrier busting

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12. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.13. Project Management can come from any function.14. WE ARE ALL IN SALES. PERIOD.15. We all invest in “wiring” the customer organization.16. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)17. We use the word “PARTNER” until we all want to barf!18. We NEVER BLAME other parts of our organization for screw-ups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”

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21. We believe in “High tech, High touch.”22. We are DREAMERS.23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)24. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!

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

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

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

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“The [Starbucks] Fix” Is on …“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.”Nancy Orsolini, District Manager

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

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Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

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“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

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1940: 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:“Experience” is the “Last 80%”P.S.: “Experience” applies to allwork!
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1940: 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

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Bob Lutz:“I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.”Source: NYT 10.19.01

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

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Moving CompaniesWSJ/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. …”

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Duet … 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

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From “Service’ to “Cause”7X. 730A-800P. F12A.**Plus: WOW Department’” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce Bank/NJ ($10B). Source: FC05.02.

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“Car designers need to create astory. 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

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Words!— 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

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Cirque du Soleil: 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

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“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.]

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Dell + IBM + Harley Davidson* = Magic!*Frictionless throughout Supply-chain + EncompassingSolutions + Scintillating Experience
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“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

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DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni

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

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The marketing of Dreams (Dreamketing)Dreamketing: Touching the clients’ dreams.Dreamketing: The art of telling stories and entertaining.Dreamketing: Promote the dream, not the product.Dreamketing: Build the brand around the main dream.Dreamketing: Build the “buzz,” the “hype,” the “cult.”Source: Gian Luigi Longinotti-Buitoni

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Building the Creative OrganizationChoose 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

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Constantly Magnify Perceived ValueMaximize 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

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(Revised)Experience LadderDreams Come True Awesome ExperiencesSolutionsServicesGoodsRaw Materials
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Safe, On-time and ...“We defined personality as a market niche. We seek to amaze, surprise, entertain.”— Herb Kelleher, SWA / LUV
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Furniture vs. Dreams“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

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“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

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“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

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“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

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“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

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Six Market Profiles1. 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

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New Market RealitiesSelling 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

unconventional design messages not about lumpy objects no t about 79 000 objects
Unconventional [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects
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The I.D. [International Design] Forty*Airstream … Alfred A. Knopf … Apple Computer …Amazon.com… Bloomberg… Caterpillar …CNN… Disney…FedEx… Gillette … IBM …Martha Stewart… New Balance …Nickelodeon… Patagonia …The New York Yankees… 3M … Etc. * List No. 1, 1999

unconventional design messages not about lumpy objects no t about 79 000 objects1
Unconventional [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects
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Design Transforms even the [Biggest] Corporations!TARGET… “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

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Lady Sensor, Mach3, and …$70M on developing the OralB CrossAction toothbrush23 patents, including 6 for the packagingSource: www.ecompany.com [06.00]

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And Tomorrow …“Fifteen years ago companies competed on price. Now it’s quality.Tomorrow it’s design.”Robert Hayes
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All Equal Except …“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.Design is the only thing that differentiates one product from another in the marketplace.”Norio Ohga

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“The new Beetle fails at most categories. The only thing it doesn’t fail in is drop-dead charm.”Jerry Hirshberg, Nissan Design International

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Object of Desire!“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

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“The good 10 percent of American product design comes out of big-idea companies that don’t believe in talking to the customer. They\'re run by passionate maniacs who make everybody’s life miserable until they get what they want.”Bran Ferren, Applied Minds/Wired 1-2001

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“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

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Check Out the Language:“Tomorrow it’s design …”“Design is the only thing …”“Design is … religion ...”“Drop-dead charm …”“Object of desire …” “Passionate maniacs …” “Fundamental soul …”

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THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the front burner.

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“Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female.”Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

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The Designer’s Ring“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

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“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
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15 “Leading” Biz SchoolsDesign/Core: 0Design/Elective: 1Creativity/Core: 0Creativity/Elective: 4Innovation/Core: 0Innovation/Elective: 6Source: DMI/Summer 2002

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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.”)

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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.: Gordon Bell (VAX daddy): 500/50. Chas. Wang (CA): Behind schedule? Cut least productive 25%.
first steps beauty contest
First Steps: “Beauty Contest”!
  • 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.

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Was“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.”

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

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Is“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

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“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

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“Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs.”Source: Jean-Marie Dru, Disruption

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1st 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

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2 Questions:“How likely are you to purchase this new product or service?”(95% to 100% weighting by execs)“How unique is this new product or service?”(0% to 5%*)*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

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“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.”Jerry Garcia
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“A great company is defined by the fact that it is not compared to its peers.”Phil Purcell, Morgan Stanley
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Brand = You Must Care!“Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.”Tom Chappell, Tom’s of Maine

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“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!

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Rules of “Radical Marketing”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)

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Branding: Is-Is Not “Table”TNT is not: TNT is: TNT is not:Juvenile Contemporary Old-fashionedMindless Meaningful ElitistPredictable Suspenseful DullFrivolous Exciting SlowSuperficial Powerful Self-important

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“Salt is salt is salt. Right? Not when it comes in a bluebox with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf.”Tom Asaker, Humanfactor Marketing

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What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they can do it, we can do it.’ ”Barry Gibbons

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?????????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%

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

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1970-1998Men’s median income: +0.6%Women’s median income: + 63%Source: Martha Barletta, Marketing to Women
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Business Purchasing PowerPurchasing 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.U.S. employees > F500 employees worldwideSource: Martha Barletta, Marketing to Women
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91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”)Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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Carol Gilligan/ In a Different VoiceMen: Get away from authority, familyWomen:ConnectMen: Self-orientedWomen:Other-orientedMen: RightsWomen:Responsibilities

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Men: Individual perspective. “Core unit is ‘me.’ ”Pride in self-reliance.Women: Group perspective. “Core unit is ‘we.’ ” Pride in team accomplishment.Source: Martha Barletta, Marketing to Women

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FemaleThink/ Popcorn“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.”“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

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“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!)

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“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

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How Many Gigs You Got, Man?“Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their vendor.”Robin Sternbergh/ IBM

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Women\'s View of Male SalespeopleTechnically 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)

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

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Women and Healthcare— 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

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Women and Financial AdvisorsWomen 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)

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“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

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“Resting” State: 30%, 90%: “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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“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

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“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

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SensesVision: 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

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Sensitivity to differences: Twice as many card stacks.More “contextual,” “holistic.”“People powered”: Age 3 days, baby girls 2X eye contact. Source: Martha Barletta, Marketing to Women

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“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

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Stress* **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

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“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

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“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

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“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

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“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)

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“Where the Girls Are: They’re Online, Solving Puzzles and Making Up Characters in Narrative-driven Games” —Headline/WSJ/10.28
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Initiate PurchaseMen: Study “facts & features.”Women: Ask lots of people for input.Source: Martha Barletta, Marketing to Women
eveolution truth no 1 connecting your female consumers to each other connects them to your brand
EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand
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“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

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What If …“What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?”“What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills?”EVEolution

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The New New Jiffy Lube“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

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Purchasing PatternsWomen: Harder to convince; more loyal once convinced.Men: Snap decision; fickle.Source: Martha Barletta, Marketing to Women

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Cents & Sensibility “Our advisory sessions [with women] changed from a purely analytical, male approach to something that starts with the heart and ends with the figures.”

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“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

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“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

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

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“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

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Yes!: “Crest Spinoff Targets Women”—cover story,Ad Age/06.03.02Crest Rejuvenating Effects. “Chicks in charge” team. $50M launch. Packaging. Taste. Features.

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“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.”

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“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

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Enterprise Reinvention!RecruitingHiring/Rewarding/PromotingStructure ProcessesMeasurementStrategyCulture VisionLeadershipTHE BRAND ITSELF!

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STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction 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

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Not a Morality Play“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

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27 March 2000: email to TP from Shelley Rae Norbeck “I make 1/3rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

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“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

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Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team“In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. … I have a responsibility to do the best we can for shareholders.” * ***Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face … to Margaret Thatcher or Carly Fiorina? (I would.)

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Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way”PresentingExperts: M = 16;F = ?? (94% = 272)

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Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors, engineers, bankers--sitting around designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

customer is king 4 440 customer is queen 29 source steve farber google search 04 2002
“Customer is King”: 4,440“Customer is Queen”: 29Source: Steve Farber/Google search/04.2002
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“Women Beat Men at Art of Investing”Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis(Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term)

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Investment Club ReturnsWomen-only clubs 1997 … 17.9%Mixed … 17.3%Men-only … 15.6%Source: National Assoc. Investors
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Value Line: Top State* Investment Clubs 20008 … All male19 … Coed22 … All FEMALE* VT & Maine not included; D.C. included
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JBQ: Stop Treating Women Investors Like Idiots!“Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives.”Source: Newsweek 01.08.01

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Notes to the CEO--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!Source: Martha Barletta, Marketing to Women

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1. Men and women are different.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.

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44-65: “New Consumer Majority” **45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
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“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

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“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers”—David Wolfe and Robert Snyder, Ageless Marketing
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“NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?”USN&WR Cover/06.01
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50+$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

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“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!Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
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“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

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“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

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“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

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“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

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“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

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“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

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

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Possession 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

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POSSESSION EXPERIENCE: 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

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“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

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“ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

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“The baby-boom generation is the first wellness generation.”—Paul Zane Pilzer/The Wellness Revolution: The Next Trillion Dollar Industry
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Wellness = $$$$$$$$Currently $200B, $1T by 2013(Source: Paul Zane Pilzer, The Wellness Revolution: The Next Trillion Dollar Industry)
hispanics 38 5 growth 1990 2000 vs 9 3 overall source communispace 2003
Hispanics: 38.5% growth, 1990-2000, vs. 9.3% overall**Source: Communispace/2003
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“Relative to the demand, the success stories are pitifully few”—Andrew Nuttney, Research Director, The Research & Advisory Group; on marketing effectively to Hispanics

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“BofA Is Betting Its Future on the Hispanic Market” *“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

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Duh!“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

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Marketing to Women,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

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Your Current Project?1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10.WE AIM TO CHANGE THE WORLD.(Insane!/Insanely Great!/WOW!)

measures
Measures
  • WOW!
  • Beauty!
  • Raving Fans!
  • Impact!
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TP: “Your ‘signature’ is not ‘I work for Dow.’ It’s, ‘’I accomplished [INCREDIBLY COOL PROJECT] while I was associated with Dow.’”**Terms: Signature. Portfolio. Projects. Braggables.

reward excellent failures punish mediocre successes phil daniels sydney exec
“Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec
joe j jones 1942 2003 he woulda done some really cool stuff but his boss wouldn t let him
Joe J. Jones 1942 – 2003 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
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Characteristics of the “Also rans”*“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: “If you don’t like Sunday School, change it!” (She did.)
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The greatest dangerfor 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 Be somebody or to Do something”BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
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The Sales25: Great Salespeople …1. Know the product. (Find cool mentors, and use them.)2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org.(Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs.(INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

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Great Salespeople …8. Never overpromise.(Even if it costs you your job.)9. Sell only by solving problems-creating profitable opportunities.(“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)

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Great Salespeople …12. Think “Turnkey.” (It’s always your problem!)13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business.(Even if it gets you fired.)16. Understand the idea of a “good loss.”(A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.

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Great Salespeople …21. Use the word “partnership” obsessively, even though it is way overused.(“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload.(NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!

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Culture of Prototyping“Effective prototyping may be the most valuable core competence an innovative organization can hope to have.”Michael Schrage

he who has the quickest o o d a loops wins observe orient decide act col john boyd
He who has the quickest O.O.D.A. Loops* wins!*Observe. Orient. Decide. Act. / Col. John Boyd
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“Find something small that you can turn around. If you’re on a 9-game losing streak, you need to start with one great inning.”—Rudy
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ShellGame 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

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

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“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

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REAL Org Change:Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes(mostly extant: “burned to reinvent gov’t”)/ Stories&Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders&Recognition(Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers(networking mania)/ Protectors/ Support Groups/ End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus(3 COs) (long way away)/Speed (O.O.D.A. Loops—act before the “bad guys” can react)C.f., Bob Stone, Lessons from an Uncivil Servant

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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

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“What strategic motto will dominate this transition from nation-state to market-state? If the slogan that animated the liberal, parliamentary nation-states was ‘make the world safe for democracy,’ what will the forthcoming motto be? Perhaps ‘making the world available,’ which is to say creating new worlds of choice and protecting the autonomy of persons to choose.”—Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

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“better material welfare” vs. “maximize the opportunity of its people”—Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

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“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

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In Store: International Equality, Intranational Inequality“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20th century.”James Davidson & William Rees-Mogg,The Sovereign Individual

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New World of Work< 1 in 10 F500#1: Manpower Inc.Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)Microbusinesses: 12M-27MTotal: 31M-55MSource: Daniel Pink, Free Agent Nation

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“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%)

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“If there is nothing very special about your work,no matter how hard you apply yourself, you won’t get noticed, and that increasingly means you won’t get paid much either.”Michael Goldhaber, Wired

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
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“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

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Minimum New Work 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

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Minimum New Work 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

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Thriving in 24/7 (Sally Helgesen)START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of where we are.LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business.WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking people up.”

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“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)

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“Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.”Peter Drucker,Business 2.0 (22August2000)

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Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it.Why don’t businesspeople do it?

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Prep: 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

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

personal brand equity evaluation
Personal “Brand Equity” Evaluation
  • I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing].
  • My current Project is challenging me …
  • New things I’ve learned in the last 90 days include …
  • My public “recognition program” consists of …
  • Additions to my Rolodex in the last 90 days include …
  • My resume is discerniblydifferentfrom last year’s at this time …
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The Rule of Positioning“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
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“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

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“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

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

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“Historically, smart people have always turned to where the money was. Today, money is turning to where the smart people are.” —FT/06.03.03

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Age of AgricultureIndustrial AgeAge of Information IntensificationAge of Creation IntensificationSource: Murikami Teruyasu, Nomura Research Institute

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Talent!Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.”Source: Business2.0/12.2002-01.2003

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“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed Michaels

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“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.”Warren Bennis & Patricia Ward Biederman, Organizing Genius

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Talent (Not) on His MindNorman Pearlstine, Editor-in-Chief, Time Inc. asked a magazine’s managing editor to name 10 people outside Time that the magazine should pursue: “He said, I can’t think of any.’ ”Source: New York Times/05.12.2003

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From “1, 2 or you’re out” [JW] to …“BestTalent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent

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“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacificchanged 20 of his 40 box plant managers to put more talented, higher paid managers in charge.He increased profitability from $25 million to $80 million in 2 years.”Ed Michaels, War for Talent

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Message: Some people are better than other people.Some people are a helluva lot better than other people.
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“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.”Ed Michaels, War for Talent (05.17.00)

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“Why focus on these late teens and twenty-somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.”The Economist [12/2000]

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8 Minutes* —Dr. Sugata Mira, NIIT/ New Delhi/ 1999***Ignorance to Surfing**And then there’s oya yubi sedai, the “thumb generation”
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“Where do good new ideas come from? That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.”Nicholas Negroponte

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“Diversitydefines the health and wealth of nations in a new century.Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.”G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

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CM Prof Richard Florida on “Creative Capital”: “You cannot get a technologically innovative place unless it’s open to weirdness, eccentricity and difference.”Source: New York Times/06.01.2002

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“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure”Title, Special Report, BusinessWeek, 11.20.00

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The Cracked Ones Let in the Light“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.”David Ogilvy

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Deviants, Inc. “Deviance tells the story of every mass market ever created.What starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.”Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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“Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

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People DepartmentCenter for Talent ExcellenceSeriously Cool People Who Recruit & Develop Seriously Cool PeopleEtc.
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What’s your company’s … EVP?Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promiseper TP

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EVP = Challenge, professional growth, respect, satisfaction, opportunity, rewardSource: Ed Michaels et al., The War for Talent
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Our MissionTo develop and manage talent;to apply that talent,throughout the world, for the benefit of clients;to do so in partnership; to do so with profit.WPP

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Talent’s “Big Two” RulesGREAT Finance Dept. = GREAT Football TeamDIFFERENCES Among Cello Players = DIFFERENCES Among Hotel GMs
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The Talent501. People first!2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added.4. Talent “excellence” in every part of the organization.5. P.O.T./Pursuit Of Talent = Obsession.6. HR sits at The Head Table.7. HR is “cool.”

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The Talent508. Re-name “HR.” (Talent Department, Center of Talent Excellence)9. There’s an HR Strategy10. There is a FORMAL Recruitment Strategy.11. There is a FORMAL Leadership Development Strategy.12. There is a “world class” Leadership Development Center.13. There is a FORMAL-STRATEGIC HR Review Process.14. The “Top100,” and every unit’s Top10, are consciously managed.

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The Talent5015. “People/Talent Reviews” are the FIRST reviews.16. HR Strategy = Business Strategy.17. Make it a Cause Worth Signing Up For..18. Set Sky High Standards.19. Enlist everyone in Challenge Century21.20. Pursue the Best!21. Up or Out.22. Ensure that the Review Process has INTEGRITY.23. Pay!

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The Talent5024. Training I: Train! Train! Train!25. TII: 100% “business people.”26. TIII: 100% Leaders.27. TIV: Boss as Trainer-in-Chief.28. Open Communication I: NO BARRIERS.29. Open Communication II: Share Information. (ALL!)30. Respect!31. INTEGRITY!32. Treat the Whole Individual.

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The Talent5033. Places of “grace.”34. MBWA: The “Rudy Rule.”35. Thank You!36. Promote for “people skills.” (ALL ELSE IS SECONDARY.)37. Honor youth.38. Early leadership assignments.39. Fast Tracking is the norm.40. Create a System of Mentoring.

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The Talent5041. Diversity!42. Diversity starts on the Board of Directors.43. WOMEN RULE.44. Weird Wins.45. We are all unique. 46. Bosses “win people over.”47. GOAL: Adventures of Mutual Discovery.48. Foster Independence.49. Enthusiasm!

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“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure”Title, Special Report, BusinessWeek, 11.20.00

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Lawrence A. Pfaff & Assoc.— 2 Years, 941 mgrs (672M, 269F); 360º feedback— Women: 20 of 20; 15 of 20 with statistical significance, incl. decisiveness, planning, setting stds.) — “Men are not rated significantly higher by any of the raters in any of the areas measured.” (LP)

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The New Economy …Shout goodbye to “command and control”!Shout goodbye to hierarchy!Shout goodbye to “knowing one’s place”!
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“Guys want to put everybody in their hierarchical place. Like, should I have more respect for you, or are you somebody that’s south of me?”Paul Biondi, Mercer Consultants [from It’s Not Business, It’s Personal, Ronna Lichtenberg]

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“Society is based on male standards with women seen as anomalies deviating from the male norm.”— Bi Puvaneu, Institute for Future Studies (Stockholm)

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Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity.Source: Judy B. Rosener, America’s Competitive Secret: Women Managers

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“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-first-century economic community are going to need the natural talents of women.”Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World

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“American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one organization and one country from another will be its use of human resources. Today human resource utilization is not only a matter of social justice but a bottom-line issue.”Judy Rosener, America’s Competitive Secret

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“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?”Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

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“Investors are looking more and more for a relationship with their financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men.”Hardwick Simmons, CEO, Prudential Securities

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Work’s RewardsF: Relationships, respect, self-realization.M: Title, salary, power. (“In all my research with men, I’ve never once heard a mention about the importance of relationships.”)Source: Susan Rice, former Director of Communications, BBDO Europe (from “A Dignified Woman”)

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Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team“In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. … I have a responsibility to do the best we can for shareholders.” * ***Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face … to Margaret Thatcher or Carly Fiorina? (I would.)

okay you think i ve gone tooooo far how about this do any of you suffer from too much talent
Okay, you think I’ve gone tooooo far. How about this:DO ANY OF YOU SUFFER FROM TOOMUCH TALENT?
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63 of 2,500 top earners in F5008% Big 5 partners14% partners at top 250 law firms43% new med students; 26% med faculty; 7% deansSource: Susan Estrich, Sex and Power

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“It’s time for U.S. organizations to act. No other country in the world has a comparable supply of professional women waiting to be called into action. This is America’s competitive secret.”Judy B. Rosener, America’s Competitive Secret

opportunity
Opportunity!

U.S.G.B.E.U.Ja.

M.Mgt. 41% 29% 18% 6%

T.Mgt. 4% 3% 2% <1%

Peak Partic. Age 45 22 27 19

% Coll. Stud. 52% 50% 48% 26%

Source: Judy Rosener, America’s Competitive Secret

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It’s Girls, Stupid!1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in high-level math and science coursesMore girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbersBoys do rule: crime, alcohol, drugs, failure to do homework (4:1)Source: The Atlantic Monthly (May2000)

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Degree Gap*Wom:Men/Bachelor’s … 2000: 133; 2010: 142Wom:Men/Master’s … 2000: 138; 2010: 151* Whites, Blacks, Hispanics, Asians, Native AmericansSource: The New Gender Gap/BusWeek/05.26.2003

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Girls lead: Student gov’t, music & performing arts, yearbook & newspaper, academic clubs.Boys lead: Sports, learning disabilities, diagnosed with emotional disturbancesSource: The New Gender Gap/BusWeek/05.26.03

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“THE NEW GENDER GAP: From kindergarten to grad school, boys are becoming the second sex”—Cover story, BusinessWeek/26 May 2003
read this winning the talent war for women sometimes it takes a revolution douglas mccracken hbr
Read This!“Winning the Talent War for Women: Sometimes It Takes a Revolution”Douglas McCracken, HBR
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“Deloitte was doing a great job of hiring high-performing women; in fact, women often earned higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male-dominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions.”Douglas McCracken, “Winning the Talent War for Women” [HBR]

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“The process of assigning plum accounts was largely unexamined. … Male partners made assumptions:‘I wouldn’t put her on that kind of company because it’s a tough manufacturing environment.’ ‘That client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ”Douglas McCracken, “Winning the Talent War for Women” [HBR]

14 to 168 leadership positions d t 1992 2002 wiar
!!!!!!!!!!!!!!!14 to 168**Leadership Positions/D&T/1992-2002/WIAR
2004 sf s gavin newsome top 3 jobs to women fire chief police chief da all were held by men
2004/SF’s Gavin Newsome: top 3 jobs to women … Fire Chief, Police Chief, DA (All were held by men)
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Cirque du Soleil: 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

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“Would Congress [the Boardroom—TP] be a different place if half the members were women?”From Sex and Power, Susan Estrich
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“I’m on the lunatic fringe of optimism.”—Shelley Lazarus, CEO, Ogilvy & Mather, on women eventually occupying 50% of F500 CEO slots (vs. 8/1.6% in 2003)

my education was a prolonged and concerted attack on my individuality neil crofts authentic
“My education was a prolonged and concerted attack on my individuality.”—Neil Crofts, Authentic
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“The boys who made the best ‘Grotties’ usually turned out to be nonentities later; boys who hated Groton did much better.”FDR biographer John Gunther (quoted in Whoever Makes the Most Mistakes Wins, Richard Farson & Ralph Keyes)

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J. D. Rockefeller’s General Education Board (1906):“In our dreams people yield themselves with perfect docility to our molding hands.…The task is simple. We will organize children and teach them in a perfect way the things their fathers and mothers are doing in an imperfect way.”John Taylor Gatto, A Different Kind of Teacher

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“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age?His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ”Jordan Ayan, AHA!

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“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is: Every school I visited was participating in the suppression of creative genius.”Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

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Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in featureless rooms … sort children into rigid categories by the use of fantastic measures such as age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving them of private time and space …John Taylor Gatto, A Different Kind of Teacher

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Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to discriminate qualities quantitatively … insist that every moment of time be filled with low-level abstractions… forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their active learning time to acquire.”John Taylor Gatto, A Different Kind of Teacher

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“What actually correlates with success are not grades but ‘engagement’—genuine involvement in courses and campus activities. Engagement leads to ‘deep learning.’ That’s very different from just memorizing stuff for an exam. As Russ Edgerton of the Pew Forum on Undergraduate Learning notes, ‘What counts is what students do in college, not who they are or where they go to college, or what their grades are.’” —John Merrow/USA Today/02.2003

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“During the first years of life, youngsters all over the world master a breathtaking array of competences with little formal tutelage.”Howard Gardner, The Unschooled Mind

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“Children should be taught in an active way by doing things and playing games. It’s very different to what is taught in schools which involves sitting back and absorbing information.”—Edward de Bono/The Independent/10.28.2002

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The Learner’s ManifestoThe brain is always learning.Learning does not require coercion.Learning must be meaningful.Learning is incidental.Learning is collaborative.The consequences of worthwhile learning are obvious.Learning always involves feelings.Learning must be free of risk.Frank Smith, Insult to Intelligence

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Education3MLearning is a normal state.Children are learnavores.Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]We learn at different rates.We learn in different ways.Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real world” standards.

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Education3MWe learn most/fastest/most completely when we are passionate about what we are learning and it matters to us.[Salience rules!]Think EBI/LBI: Education by Interest/Learning by Internship.Classrooms are abnormal places.We need changes of pace. [Japanese recesses after each class.]International test scores are not correlated with hours-per-year in class.Big classes are slightly problematic. Big schools suck. Period.

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Education3MWe learn most/fastest/most completely when we are passionate about what we are learning and it matters to us.[Salience rules!]Think EBI/LBI: Education by Interest/Learning by Internship.Classrooms are abnormal places.We need changes of pace. [Japanese recesses after each class.]International test scores are not correlated with hours-per-year in class.Big classes are slightly problematic. Big schools suck. Period.

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Education3M“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]Teachers need enough space-time-flexibility to get to know kids as individuals.Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

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Education3MOur toughest “learning achievement”—mastering our native language—does not require schools, or even competent parents. [It does require a desperate need-to-know.]Great teachers are great learners, not imparters-of-knowledge.Great teachers ask great questions—that launch kids on lifelong quests.The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly sophisticated questions—just ask a ski instructor or neurosurgeon.

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Education3MMost schools spend most of their time setting up contexts in which kids learn not to like particular subjects.[Evidence shows that such anti-learning sticks!]Vigorous exploration is normal … until you are incarcerated in a school.“Bite size” education-learning is neither education nor learning.Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in the hyper-structured classroom.

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Education3MThe “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”Schools of “education” should by and large have their charters revoked.

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Education3MStability is dead; “education” must therefore “educate” for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static body of “facts.”“Education” must “develop in youth the capabilities for engaging in intense concentrated involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]

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Ye gads: “Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

attributes of those who made the 10th grade history book
Attributes of Those Who “Made” the 10th Grade History Book
  • Committed!
  • Determined to make a difference!
  • Focused!
  • Passionate!
  • Irrational about their life’s project!
  • Ahead of their time / Paradigm busters!
  • Impatient! / Action Obsessed
attributes of those who made the 10 th grade history book
Attributes of Those Who “Made” the 10thGrade History Book
  • Made lots of people mad!
  • Flouted the chain of command!
  • Creative / Quirky / Peculiar! / Rebels! / Irreverent!
  • Masters of improv / Thrive on chaos / Exploit chaos!
attributes of those who made the 10 th grade history book1
Attributes of Those Who “Made” the 10thGrade History Book
  • Made lots of people mad!
  • Flouted the chain of command!
  • Creative / Quirky / Peculiar! / Rebels! / Irreverent!
  • Masters of improv / Thrive on chaos / Exploit chaos!
attributes of those who made the 10 th grade history book2
Attributes of Those Who “Made” the 10th Grade History Book
  • Forgiveness > Permission
  • Bone honest!
  • Flawed as the dickens!
  • “In touch” with their followers’ aspirations
  • Damn good at what they do!
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Brand Inside Rules!“I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game”—Lou Gerstner, Who Says Elephants Can’t Dance?

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Brand Inside Rules!“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard.”—Lou Gerstner, Who Says Elephants Can’t Dance?

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Saviors-in-WaitingDisgruntled CustomersOff-the-Scope CompetitorsRogue EmployeesFringe SuppliersWayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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CUSTOMERS: “Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.”Adrian Slywotzky, Mercer Consultants

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“If you worship at the throne of the voice of the customer, you’ll get only incremental advances.”Joseph Morone, President, Bentley College

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“These days, you can’t succeed as a company if you’re consumer led – because in a world so full of so much constant change, consumers can’t anticipate the next big thing. Companies should be idea-led and consumer-informed.”Doug Atkin, partner, Merkley Newman Harty

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“Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value.”Clayton Christensen, The Innovator’s Dilemma

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*P&G:Declining domestic sales in 20 of 26 categories; 7 of top 10 categories.(The “billion-dollar” problem.)Source: Advertising Age 01.21.2002/BofA Securities

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Ways to Raise a Purple CowThink small. One vestige of the TV-industrial complex is a need to think mass. If it doesn’t appeal to everyone, the thinking goes, it’s not worth it. Think of the smallest conceivable market—and describe a product that overwhelms it with remarkability. Go from there.Source: Seth Godin, Fast Company (02.2003)

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Primary Obstacles to “Marketing-driven Change”1. Fear of “cannibalism.”2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.”3.Creating “sustainable advantage.”Source: John-Marie Dru, Disruption

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“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition.”Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

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“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is Marketing Not Working?”

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The Fatal Assumption: “Analysis Produces Synthesis”“Planning by its very nature defines and preserves categories. Creativity, by its very nature, creates categories or rearranges established ones ... The key is integration rather than de-composition, based on holistic images rather than linear words.”— Henry Mintzberg, The Rise and Fall of Strategic Planning

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COMPETITORS: “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.”Mark Twain

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“To grow, companies need to break out of a vicious cycle of competitive benchmarking, imitation and pursuit.”—W. Chan Kim & Renee Mauborgne, “”Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

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“Aiming to beat the competition has the opposite effect to the one intended. It keeps companies focused on the competition. When asked to build competitive advantage, managers typically rate themselves against competitors, assess what they do and try to do it better.”—W. Chan Kim & Renee Mauborgne, “Think for Yourself—Stop copying a Rival”/FT/08.03

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“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Gameboy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/02.2003

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Employees: “Are thereenoughweirdpeoplein the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)
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Suppliers:“There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.”Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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Boards: “Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable”—Jeffrey Sonnenfeld, Yale School of Management

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“The Bottleneck is at the Top of the Bottle”“Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma? At the top!”— Gary Hamel, “Strategy As Revolution/ Harvard Business Review

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“Enormous sums of money are invested to reduce cycle time, improve quality, reengineer … Much of this money is simply wasted. The waste is due to companies’ inability to develop wide-angle vision and tap into the … power of the edge.”Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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“Corporate consciousness is predictably centered around the mainstream. The best customers, biggest competitors, and model employees are almost invariably the focus of attention.”Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

message take someone new weird to lunch today or tomorrow inundate yourself with weird
Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.]
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WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation

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Kevin Roberts’ Credo1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.10. Avoid moderation!

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Advice to Corporate Leaders: “Consider the metaphor of the windmill: You can harness raw power but you can’t control it. …Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. … Hire a corporate anthropologist to analyze how tolerant your organization is of deviants and other innovators. … Once the anthropologist leaves, hire a shaman to drive out the evil spirits of conformity. …”Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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Deviants, Inc. “Deviance tells the story of every mass market ever created.What starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.”Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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“ ‘Giant’ projects contain within them the almost certain seeds of mediocrity. The very fact of their size causes constant scrutiny and thence ‘political’ interference. Such ‘oversight’ drains the passion of the champions and risks—to the point of certainty—fatal ‘dumbing down’ and thence loss of the very distinction and quirkiness sought in the first place.”—Exec, Hollywood

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Innovation Source No. 1*: PPPs/Personally Pissed-off People“Branson started Virgin Atlantic because flying other airlines was so dreadful.” —Fortune/05.13.2002*And there is no No. 2!

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Bernie Goldhirsh: Sailing his passion, but sailing mags for yachtsmen only … start Sail. Sail a biz success, but biz mags for corporate types only … start Inc.

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Innovation Index: How many of your Top 5 Strategic Initiatives score 7 or higher (out of 10) on a “Weirdness/Profundity Scale”?
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“Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – P.D.
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Organizing Genius / Warren Bennis and Patricia Ward Biederman“Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.”“The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

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Leaders-Teachers Do Not “Transform People”!Instead leaders-mentors-teachers (1) provide a contextwhich is marked by (2)access to a luxuriant portfolio of meaningful opportunities(projects) which (3) allow people to fully(and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”)express their innate curiosity and (4) engage in a vigorous discovery voyage(alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they(and their mentors-teachers-leaders)had never dreamed existed—and then the leaders-mentors-teachers (6)applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!

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2.Great Leaders on Snorting Steeds Are Important – butGreat Talent Developers(Type I Leadership)are the Bedrock of Organizations that Perform Over the Long Haul.

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3. But Then Again, There Are Times When This “Cult of Personality” (Type II Leadership) Stuff Actually Works!
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USN&WR/What traits do successful activists share?Studs Terkel, age 91: “They have hope, and they imbue others with hope.”
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The Golden Leadership Triangle: (1) Creator-Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic.
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The Essential Tension— Keeper of the Flame of Creation (Brahma = Creator) — Keeper of the Flame of Preservation (Vishnu = Preserver) — Keeper of the Flame of Destruction (Shiva = Destroyer)

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33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson—1 season.

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“The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.”—John Keegan, The Mask of Command

i m not comfortable unless i m uncomfortable jay chiat
“I’m not comfortable unless I’m uncomfortable.”—Jay Chiat
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The Kotler Doctrine:1965-1980: R.A.F.(Ready.Aim.Fire.)1980-1995: R.F.A.(Ready.Fire!Aim.)1995-????: F.F.F.(Fire!Fire!Fire!)
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“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly. They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they’ve gained in other markets to enforce their standard.”Seth Godin, Zooming

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“The lesson is the importance of relentless readjustment. At Microsoft they never get it right, but they’re constantly, relentlessly adjusting. And somehow, through constant readjustment practice over time, they gradually weave their way to the right place.” —George Colony, Forrester Research

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“Sony Electronics has a well-earned reputation for persistence. The company’s first entry into a new field often isn’t very good. But, as it has shown in laptops, Sony will keep trying until it gets it right.”BusinessWeek (5/01)

half full cups ronald reagan radiated an almost transcendent happiness lou cannon george 08 2000
Half-full Cups:“[Ronald Reagan] radiated an almost transcendent happiness.”Lou Cannon, George (08.2000)
it is no use saying we are doing our best you have got to succeed in doing what is necessary wsc
“It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.”—WSC
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“When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played—or does she keep wandering back to strategy or philosophy?”—Larry Bossidy, Honeywell/AlliedSignal, in Execution

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It’s T-H-R-E-E, Stupid!“I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.”— Richard Haass, The Power to Persuade

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JackWorld/[email protected]: (1) Neutron Jack.(Banish bureaucracy.) (2) “1, 2 or out” Jack.(Lead or leave.) (3) “Workout” Jack.(Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK!

ridin with roger what have you done to dramatically improve quality in the last 90 days
Ridin’ with Roger: “What have you done to DRAMATICALLYIMPROVE quality in the last 90 days?”
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Forget>“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock
20 but leaders have to deliver so they worry about throwing the baby out with the bathwater
20.BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.”
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“Damned If You Do, Damned If You Don’t, Just Plain Damned.”Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

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Saviors-in-WaitingDisgruntled CustomersUpstart CompetitorsRogue EmployeesFringe SuppliersWayne Burkan, Wide Angle Vision
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“Success is the ability to go from failure to failure without losing your enthusiasm.”Winston Churchill(as quoted by John Peterman)
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“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)

reward excellent failures punish mediocre successes phil daniels sydney exec and de facto jack
“Rewardexcellentfailures. Punish mediocre successes.”Phil Daniels, Sydney exec (and, de facto, Jack)
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Silicon Valley Success [Failure?] Secrets“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpotSource: The Economist

24 leaders know that there s more to life than line extensions leaders love to create new markets
24. Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.”Leaders Love to CREATE NEW MARKETS.
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“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
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“I never, ever thought of myself as a businessman.I was interested in creating things I would be proud of.”—Richard Branson
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“In 1933, Thomas J. Watson Sr. gave a speech at the World’s Fair, ‘World Peace through World Trade.’ We stood for something, right?”—Sam Palmisiano

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CEO Assignment2002 (Bermuda): “Please leap forward to 2007, 2012, or 2022, and write a business history of Bermuda.What will have been said about your company during your tenure?”

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Ah, kids:“What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and imagine me immediately doing something about what you’ve just said. What would it be?” “Do you feel you have an obligation to ‘Make the world a better place’?”

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“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’”—Max DePree, Herman Miller

26 leaders push their organizations w a y up the value added intellectual capital chain
26. Leaders Push Their OrganizationsW-a-y Up the Value-added/ Intellectual Capital Chain
09 11 2000 hp bids 18 000 000 000 for pricewaterhousecoopers consulting business1
09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersConsulting business!
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The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer

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Talent’s Rules1. Talent = 25/8/53 2. Some people are better than other people. Some people are a helluva lot better than other people3. Think “Roster”4. Think “V.C.”5. Talent = Brand6. Talent is what leaders do.

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“I start with the premise that the function of leadership is to produce more leaders, not more followers.”—Ralph Nader
what an idiot instead of employees being in the driver s seat now we re in the driver s seat
WHAT AN IDIOT:“Instead of employees being in the driver’s seat, now we’re in the driver’s seat.”
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“I didn’t have a ‘mission statement’ at Burger King. I had a dream. Very simple. It was something like, ‘Burger King is 250,000 people, every one of whom gives a shit.’ Every one. Accounting. Systems. Not just the drive through. Everyone is ‘in the brand.’ That’s what we’re talking about, nothing less.”— Barry Gibbons

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“Coca-Cola was Roberto Goizueta’s painting. It was never finished, and he was never totally satisfied with it. But he had the Sistine Chapel in his head, and he was always working on it.”— Warren Buffett

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“Until there is commitment there is hesitancy, the chance to draw back. Concerning all acts of initiative and creation, there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence moves too. All sorts of things occur to help one that would never otherwise have occurred. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now!” —Johann Wolfgang von Goethe

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“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
a powerful and madly exuberant work la times on frank gehry s walt disney concert hall 10 03
“… a powerful and madly exuberant work”—LA Times on Frank Gehry’s Walt Disney Concert Hall (10.03)
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The Urgency Factor: LEADERS … have a distorted sense of time.(E.g.: Rummy thinks he asked months ago … it was the day before yesterday.)
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]

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“Ph.D. in leadership. Short course: Make a short list of all things done to you that you abhorred. Don’t do them to others. Ever. Make another list of things done to you that you loved. Do them to others. Always.”— Dee Hock

tp if you don t love sales find another life don t pretend you re a leader see tp s the project50
TP: If you don’t LOVE SALES … find another life.(Don’t pretend you’re a “leader.”) (See TP’s The Project50.)
tp if you don t love politics find another life don t pretend you re a leader
TP: If you don’t LOVE POLITICS … find another life. (Don’t pretend you’re a “leader.”)
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“It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president.He was seriously interested in who you were and what you had to say.”

Sara Lawrence-Lightfoot, Respect

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Amen!“What creates trust, in the end, is the leader’s manifest respect for the followers.”— Jim O’Toole, Leading Change
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Trust

“ ‘Empowerment has become the biggest gap between walk and talk in America. I hear CEOs stand at podiums and say, ‘How do we get rid of five thousand more?’ We should forget the word empowerment and go back to plain English. Empowerment is nothing more than a fancy word for trust.”

— Barry Gibbons

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“The material of a strong, ethical base includes honoring the people who do the work, respecting the letter and the spirit of the law, and believing that a company’s responsibility does not stop at the community’s edge. Such a base has been my moral compass. It guides me away from the sleek, the cut corner, and the easy path. The foment about corporate conduct has often come close to arguing that it is wrong because it has been discovered. In truth, it is wrong because it violates the most critical fundamental of business. One behaves honestly because it is right, because you ‘do unto others’—because you are responsible for your life and, in your business, for the lives of others. There is no option—no alternative.”—Sidney Harman/Harman International

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“The two most powerful things in existence: a kind word and a thoughtful gesture.”Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

the deepest human need is the need to be appreciated william james
“The deepest human need is theneed to be appreciated.”William James
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“We look for ...“... listening, caring, smiling, saying ‘Thank you,’ being warm.”— Colleen Barrett, President, Southwest Airlines
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“You can’t lead a cavalry charge if you think you look funny on a horse.”—John Peers, President, Logical Machine Corporation
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Seven Seconds to Make an Impression— Amp up your attitude [It’s energy, stupid!] — Recognize “face value” [no “poker face”] — Give your message a mission [don’t forget your agenda]Source: Roger Alles, CEO, Fox News, Fast Company

the brand lives or dies in the minutiae of the leader s moment to moment actions
The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-to-moment actions.
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“A key – perhaps the key – to leadership isthe effective communication of a story.”Howard GardnerLeading Minds: An Anatomy of Leadership

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“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

leaders don t just make products and make decisions leaders make meaning john seely brown
Leaders don’t just make products and make decisions. Leaders make meaning.– John Seely Brown
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“[Bertelsmann’s Reinhard] Mohn wasn’t a creative type. What got him juiced was the art of running an organization and motivating the people who work there.”—Fortune/05.27.2002

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Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin.(“Leaders” who are not comfortable with themselves become petty control freaks.)

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The Gospel According to TP:Upon having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.)

hire smart go bonkers have grace make mistakes love technology start all over again
“Hire smart – go bonkers – have grace – make mistakes – love technology – start all over again.”
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The Leadership111. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management

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“Sir Richard’s Rules:“Follow your passions.“Keep it simple.“Get the best people to help you.Re-create yourself.“Play.”Source: Fortune/10.03

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1. TECHNICOLOR RULES! (Passion Moves Mountains!)2. Audacity Matters!3. Revolution Now!4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!)

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6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you can’t take Silicon Valley out of the boy!)7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AIN’T SEEN NOTHIN’ YET!)9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT … OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)

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11. “Permanence” Is a Snare & a Delusion. (Forget “Built to Last.” It’s Yesterday’s Idea.)12. Kaizen” (Continuous Improvement) Is …Dangerous.13. DESTRUCTION RULES!14. Forget It! (“Learning” = Easy. “Forgetting” = Nigh on Impossible.) 15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.)

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16. Boring Begets Boring. (Cool Begets Cool.)17. Think “Portfolio.” (We’re All V.C.s.)18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism of What They’re Up To.)19. Action … ALWAYS … Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH … INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns!

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21. Haste Makes Waste. (SO GO WASTE!)22. Screw-ups are … the … Mark of Excellence. (“Do It Right the First Time” Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!)24. TALENT TIME! (He/She Who Has the Best “Roster” Rules!)25. Re-do Education. Totally. (FOSTER CREATIVITY … NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)

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26. Diversity’s Hour Is Now!27. SHE … Is the Best Leader!28. MARKETING MANTRA: Embrace the “BIG THREE” Demographics. (1) SHE … is the Customer. (For everything.) (2) Rapidly Aging Boomers Have … ALL THE MONEY. (3) Green … Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY … Gets It.) (Mere “Programs” Will Not Suffice.)29. Re-boot Healthcare. (UNDERSTATEMENT.)30. WHAT ARE WE SELLING? “Experiences” & “Solutions” > “Quality” & “Satisfaction.” (The Traditional Value-added Equation Is Being Set on Its Ear.)

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31. DESIGN = New Seat of the Soul. 32. Branding Is for … EVERYONE. He Who Has the … BEST STORY … Takes Home the Marbles.33. DRAMATIC DIFFERENCE = Only Difference.34. WORDS/Language Matters … a Lot. (E.g.: Three Hearty Cheers for “Wow”!)35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: “Are You Proud of It?”)

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36. eALL. (IS/IT: Half-way = No Way.)37. DREAM … Big! DREAM … Enormous. DREAM … Gargantuan. (These Are XXXL Times.)38. THINK MIKE! (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”)39. There Is Only … ONE BIG ISSUE. Cross- functional Communication.40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF “UN-DUMBING.”)

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41. Beautiful Systems Are … BEAUTIFUL.42. The … WHITE-COLLAR REVOLUTION … Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT … OR EXTINCT!44. “Powerlessness” Is a State of Mind! Think: King. Gandhi. DeGaulle.45. Pursue Adventure … in Every Task.

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46. EXCELLENCE … Is a State of Mind. (Excellence Takes a Minute.) (No Bull.)47. SHOW UP! (If You Care, You’re There.)48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your “TO DON’T” List.)49. LIFE IS SALES. (The Rest Is Details.)50. Boss Mantra #1: “I DON’T KNOW.” (“I Don’t Know” = Permission to Explore.)

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51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (“Manager” = Hurdle Removal Professional.)52. Epitaph from Hell: “He Woulda Done Some Truly Cool Stuff … But His Boss Wouldn’t Let Him.”53. Change Takes However Long You Think It Takes. (Eschew … “Incrementalism.”)54. Respect! (Rule 1: Don’t Belittle!)55. “Thank You” Trumps All!

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56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.)57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.)58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.)59. DISPENSE ENTHUSIASM!60. FUN …Is Not a 4-Letter Word. So, too … JOY. (And … GRACE.)

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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.

t j peters 1942 2 he woulda done some really cool stuff but his boss wouldn t let him
T. J. Peters 1942 – 2---HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
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“If you ask me what I have come to do in this world, I who am an artist, I will reply: I am here to live my life out loud.”— Émile Zola
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“ ‘The idea of eloquence’ is ‘to alter in a pair of hours, perhaps in a half hour’s discourse, the convictions and habits of years.’ Not that this often actually happens, but such is always the hope. … ‘There is for every man a statement possible, so broad and so pungent that he cannot get away from it, but must either bend to it or die of it.’ For this to work, the speaker’s mind must be ‘inflamed by the contemplation of the whole’ so that sentences ‘fall from him as unregarded parts of that terrible whole which he sees and which he means that you shall see.’ … Nothing less than the perfection of humankind was eloquence’s ultimate goal.” —Lawrence Buell, Emerson

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It is the foremost task—and responsibility—of our generation to re-imagine our enterprises, private and public.—from the Foreword,Re-imagine: Business Excellence in a Disruptive Age

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“In Tom’s world it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.”—Fast Company /October2003

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The Re-imagineer’s Credo … or, 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

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