Tom peters re imagine business excellence in a disruptive age 08 10 2003
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Tom Peters Re-Imagine!Business Excellence in a Disruptive Age08.10.2003

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It is the foremost taskand responsibilityof our generation to re-imagine our enterprises, private and public .from the Foreword, Re-imagine

Uncertainty is the only thing to be sure of.Anthony Muh,head of investment in Asia, Citigroup Asset ManagementIf you dont like change, youre going to like irrelevance even less.General Eric Shinseki, Chief of Staff, U. S. Army

Uncertainty is the only thing to be sure of.Anthony Muh, head of investment in Asia, Citigroup Asset management (FT/03.27.2003)

If you dont like change, youre going to like irrelevance even less.General Eric Shinseki, Chief of Staff, U. S. Army

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

You must become an ignorant man againAnd see the sun again with an ignorant eyeAnd see it clearly in the idea of it.Wallace Stevens/Notes Toward a Supreme Fiction

Sequenom/David Ewing Duncan/Wired11.02Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification process. This, Im 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 cant look at humanity separate from machines; were so intertwined were almost the same species, and the difference is getting smaller.

Help! Theres nobody in the cockpit. In the future, will the airlines no longer need pilots?Grumman Global Hawk/ 24 hours/ Edwards to South AustraliaSource: The Economist/12.21.2002

There 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

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

The deadliest strength of Americas 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 wont do it, he said. His answer is to develop swifter, more lethal ways to fight. Big institutions arent swift on their feet in adapting but rather ponderous and clumsy and slow. The New York Times/09.04.2002

From: Weapon v. WeaponTo:Org structure v. Org structure

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

The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational Limits.

In an era when terrorists use satellite phones and encrypted email,US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont talk to each other.Boston Globe (09.30.2001)

Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys 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/Broadbands New Killer App/Business 2.0/ OCT2002

The mechanical speed of combat vehicles has not increased since Rommels 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

At Big Electronics Show, the Buzz Is All About Connections headline, New York Times/ 01.13.2003/ Consumer Electronics Show

Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer thats pre-programmed. If the physician wants, well 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)

If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart,where point-of-sale scanners share information on a near real-time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.Tom Stewart, Business 2.0

The New Infantry Battalion/New York Times/12.01.2002Pentagons 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.

Erics ArmyFlat.Fast.Agile.Adaptable.Light But Lethal.Talent/ I Am an Army of One.Info-intense.Network-centric.

Float like a butterfly. Sting like a bee. Ali

We must not only transform our armed forces but the Defense Department that serves themby 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

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?

How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasisa regulated, engineered world? Or do we embrace dynamisma 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

Successful Businesses Dozen Truths: TPs 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 Dont 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 Ones Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.


All Bets Are Off.

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000Xtech change than 20th century (the Singularity, a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history)Ray Kurzweil

Vernor Vinge/Mr. SingularityThe transition time from human history to post-human singularity time, Vinge thinks, will be astonishingly shortmaybe one hundred hours from the first moment of computer self-awareness to computer world conquest.Esquire/12.2002

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

Theres 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

In 25 years, youll probably be able to get the sum total of all human knowledge on a personal device.Greg Blonder, VC [was Chief Technical Adviser for Corporate Strategy @ AT&T] [Barrons 11.13.2000]

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

We are in abrawl with no rules.Paul Allaire


Strategy meetings held once or twice a year to Strategy meetings needed several times a week

Source: New York Times on Meg Whitman/eBay

2. The Destruction Imperative.

It is generally much easier to kill an organization than change it substantially. Kevin Kelly, Out of Control C.D.O.

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

Analysts said we dont care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see 2 or 3 years of EPS growth. I preached revenue and the analysts eyes would glaze over. Now revenue is in because so many got caught, and earnings went to hell. They said, Oh my gosh, you need revenues to grow earnings over time. Well, Duh!Dick Kovacevich, Wells Fargo (in ABA Banking Journal)

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

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

Its just a fact: Survivors underperform.Dick Foster

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

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

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 new 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 Innovators Dilemma

Forget>LearnThe problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.Dee Hock

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

When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Committee, answered:Im sure there are success stories out there, but at this moment I draw a blank.Mark Sirower, The Synergy Trap

Conglomerates dont workJames Surowiecki, The New Yorker (07.01,2002)

MERGERS: Why Most Big Deals Dont Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.BusinessWeek/10.14.2002

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 returnsSource: Donald V. Potter, Wall Street Journal (15 June 1998)

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

Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.Carl Sagan & Ann Druyan,Shadows of Forgotten Ancestors

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

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

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

TP on 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 sizeif Great & Focusedcan win, locally or globally.7. Increasingly, Alliances deliver more value than mergers and clearly abet flexibility.

A Bakers Dozen Merger Messages: Private Sector & DHS/BTSD1. Attitude Rules: Opportunity or Pain in 2. Unique time for Deep Re-assessment. (WE MUST RE-INVENT THE ESSENTIAL IDEA OF HOMELAND SECURITY.)3. THIS SORT OF THING ONLY HAPPENS ONCE EVERY SEVERAL DECADES! (I.E.: Dont blow the Main Chance!)4. Avoid getting totally caught up in (necessary) details. (KEEP YOUR EYE ON THE B-I-G OPPORTUNITY.)5. Lets assume you only hold this job for the next few months. MAKE A DAMN DIFFERENCE EVERY DAMN DAY. 6. What happens in the next few months is the principal basis by which your entire professional career will be judged.7. How well (IMAGINATIVELY!!!) you do this matters to 280,000,000 Americans.8. Every morning, say quietly to yourself, GROW UP. Forget Age Old Turf Disputes. (TURF WARFARE IS OSAMAs-TERRORISMs NO. 1 OPPORTUNITY.)9. Inclusiveness matters. Be incredibly careful about Respect & Involvement.10. Score some Quick Wins. (Rudys Rule.) Needed: New Behaviors. Focus on the Positives. (Bobs Rule.) 11. BE INSANELY LAVISH IN PRAISE OF SMALL ACTS OF COOPERATION. (Be publicly brutal to the smallest act of turf warfare.)12. GOOD DECISIONS MADE TODAY BEAT GREAT DECISIONS DELAYED FOR MONTHS. MOMENTUM & MORALE MATTER. DELAY = CANCER.13. VISIBILITY RULES!

The [New] Ge

Top-performing CompaniesExtremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable.Jeffrey Sonnenfeld, Yale School of Management

Change the rules before somebody else does.Ralph Seferian, VP, Oracle

Most of our predictions are based on very linear thinking. Thats why they will most likely be wrong.Vinod Khosla, in GIGATRENDS, Wired 04.01

The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M

The secret of fast progress is inefficiency, fast and furious and numerous failures.Kevin Kelly

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 youre trying new things.Source: Fast Company

The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo (03.02)

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

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

Axiom (Hypothesis): 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.

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 roses 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 resourcesthe 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

Japans Science Gap *Rice farming culture: uniqueness suppressed. Govt control of R & D. Promotion based on seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. bold leaps. Lack of competition and critical evaluation (peer review). Syukuro Manabe: What we need to create is job insecurity rather than security to make people compete more.*Hideki Shirakawa, Nobel laureate, chemistry

December 2000: Swiss House for Advanced Research & Education. Cambridge, Massachusetts. Xavier Comtesse: You never hear a Swiss say, I want to change the world. We need to take more risks.

The Word(s) on Vitality: Gary HamelSell By [jettison old crap]Spin Out [support entrepreneurs]Spin In [buy young firms]

No Wiggle Room!Incrementalism is innovations worst enemy. Nicholas Negroponte

Just Say No I dont intend to be known as the King of the Tinkerers. CEO, large financial services company (New York, 5-99)

The rules of the marketplace may be cruel, but they have taught us three valuable lessons. If we rest on our laurels, we will wither. If we stop being bold, we will rot. If we dont take leaps of faith, we cannot lead. J.B. Martin, UCSFSource: Susan Gould, Kerry Weiner, Barbara Levin, Free Agents

Jim & Tom. Joined at the hip. Not.

Huh?Quiet, workmanlike, stoic leaders bring about the big transformations.JC

Pastels?T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U. S. Grant/W. T. ShermanTR/FDR/LBJ/RR/JFKM.L. KingC. de GaulleM. GandhiW. ChurchillM. ThatcherPicassoMozartCopernicus/Newton/EinsteinJ. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S. McNealyA. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison

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

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

the Good Conduct medal.

Men with no vices have very few virtues.A. Lincoln

Whenever anything is being done, I have learned, it is being done by a monomaniac with a mission. Peter DruckerWhat set Edison apart was that, with all his boundless exaggeration, he conveyed the feeling that he would succeed. No matter what the obstacles, he would pound away until they were demolished. Robert Conot, biographer

A really new idea at first has only one believer. John Masters, wildcatter, Canadian HunterThe reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man. George Bernard Shaw

All great truths begin as blasphemies. George Bernard Shaw

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

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 Nordstrm and Jonas Ridderstrle,Funky Business

Built to Last v. Built to FlipThe problem with Built to Last is that its a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.Increasingly, successful businesses will be ephemeral. They will be built to yield something of value and once that value has been exhausted, they will vanish.Fast Company (03-00)

The Futility of Size Virtualization is the recognition that territorial size does not solve economic problems. Economic access must become the substitute for increasing domain.Richard Rosecrance, The Rise of the Virtual State

In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshedand produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they producethe cuckoo clock.Orson Welles, as Harry Lime, in The Third Man

Warren Bennis & Patricia Ward Biederman/ Organizing Genius:Great Groups Dont Last Very Long!


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 (08.00)

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 flourishand 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 apocalypsethe transition from a state of continuity to state of discontinuityHas the same suddenness [as the trauma that beset civilization in 1000 A.D.] Richard Foster & Sarah Kaplan, Creative Destruction (The McKinsey Quarterly)

The Three Levels of InnovationTransformationalSubstantialIncrementalSource: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!

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


Eglin Flag: 100% AGAINST ZERO DEFECTSGeneral, if youre not having accidents, your training program is not what it should be. You need to kill some pilots.BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

Perfection is achieved only by institutions on the point of collapse. C. Northcote Parkinson

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

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

Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity./ Arrange the mind of the enemy.T.E. Lawrence/ Float like a butterfly, sting like a bee.AliBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

F86 vs. MiG/Korea/10:1Bubble 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 maneuversBOYD:The Fighter Pilot Who Changed the Art of War (Robert Coram)

ManeuveristsBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)


3. The White Collar Revolution & the Death of Bureaucracy.

108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

The coefficient of friction associated with the grunge of business is amazing!Michael Schrage

A bureaucrat is an expensive microchip.Dan Sullivan, consultant and executive coach

IBMs Project eLiza!** Self-bootstrapping/ Artilects

Dont own nothin if you can help it. If you can, even rent your shoes.F.G.

Organizations will still be critically important in the world, but as organizers, not employers! Charles Handy

The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions wth few or no manufacturing capabilities a company with a head but no body.Richard Rosecrance, The Rise of the Virtual State

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

UPS used to be a trucking company with technology. Now its a technology company with trucks.Forbes, upon naming UPS Company of the Year in Y2000

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

Most physicians believe that diagnosis cant be reduced to a set of generalizationsto a cookbook. How often does my intuition lead me astray? The radical implication of the Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawedit causes more mistakes than it prevents. Atul Gawande, Complications

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

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

Vernor Vinge/Mr. SingularityThe transition time from human history to post-human singularity time, Vinge thinks, will be astonishingly shortmaybe one hundred hours from the first moment of computer self-awareness to computer world conquest.Esquire/12.2002

N.W.O./Holy Moly: Unemployment up 2% real wage growth highest since 60s productivity soaring.Source: BW/02.11.2002

E.g. Jeff Immelt: 75% of admin, back room, finance digitalized in 3 years.Source: BW (01.28.02)

BW Cover/02.2003IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic Researcheven Financial Analysis. Can America Lose These Jobs and Still Prosper?

Everybodys Doin It!The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain.The Economist/01.11.2003

GE is a champion of Indias scientists, technicians, business analysts and graduates, thousands of whom work at the U.S. conglomerates offshore service centers in India. They are the low-cost, high capability vanguard of GEs 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

4. IS/ IT/ Web On the Bus or Off the Bus.

2.5G, 3G, 4GWindowsSymbianJavaBluetooth Wi-FiPCs-PDAs-CellphonesE-business vs. M-businessEtc.

Outsiders view: (1) Billions are being spent, even in a down market. (2) NOBODY HAS A CLUE AS TO WHO THE WINNERSAND LOSERSWILL BE. (3) Yet you must play. Now. Hard. Fast.

100square feet

Dells OptiPlex FacilityBig Job: 6 to 8 hours.(80,000 per day)Parts Inventory:100square feet.

Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer thats pre-programmed. If the physician wants, well 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)

The Real News: X1,000,

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

Autobytel:$400.Wal*Mart:13%.Source: BW(05.13.2002)

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

From: Supply-chain OptimizationTo: Design-chain OptimizationSource: Cadence Design Systems

At Big Electronics Show, the Buzz Is All About Connections headline, New York Times/ 01.13.2003/ Consumer Electronics Show

NTT/DoCoMo/i-motion/remote control for your life/If Tokyo and DoCoMo are the first capitals of the wireless Internet industry, Helsinki and Nokia have been the wellsprings of mobile telephonyFinland leads the world in both Internet connections and mobile phones per capita.Source: Howard Rheingold/Smart Mobs

m-On or Out of the LoopManagers in Finland always keep their phones on. Customers expect fast reactions. And if you cant reach a superior, you make many decisions yourselfmanagers who want to influence decisions of subordinates must keep their phones open.Risto Linturi, Finnish m-guru, in Howard Rheingolds Smart Mobs

WebWorld = EverythingWeb as a way to run your businesss innardsWeb as connector for your entire supply-demand chainWebas spiders web which re-conceives the industryWeb/B2B as ultimate wake-up call to commodity producersWeb 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 entre, at any size, to Worlds Best at Everything as next door neighbor

Jargon Bath!Bureaucracy free Systemically integrated Internet intense Knowledge based Time and location free Instantly responsive Customer centric Mass customization enabled.

Translation Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain tightly wired/ friction-freeInternet intense = Do it all via the WebKnowledge based = Open accessTime and location free = Whenever, whereverInstantly responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product and service rapidly tailored to client requirements

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

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

Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ all of that is wrong for running an ebusiness.Ray Lane, Kleiner Perkins

Read It Closely:We dont sell insurance anymore.Wesell speed.Peter Lewis, Progressive

The New Infantry Battalion/New York Times/12.01.2002Pentagons 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.

Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast.Lewis Carroll

Inet allows you to dream dreams you could never have dreamed before!

Dont rebuild. Reimagine.The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002

Supposejust supposethat the Web is a new world were just beginning to inhabit. Were like the earlier European settlers in the United States, living on the edge of the forest. We dont know whats there and we dont 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 doesnt hold here, and uncommon sense hasnt yet emerged. David Weinberger, Small Pieces Loosely Joined

Hyperlinks subvert hierarchy!The Cluetrain Manifesto

[ Words to Live By Hierarchy is an organization with its face toward the CEO and its ass toward the customer.Kjell Nordstrm and Jonas Ridderstrle,Funky Business]

Case: CRM

Anne Busquet/ American ExpressNot: Age of the InternetIs: Age of Customer Control

Amen!The Age of the NeverSatisfied CustomerRegis McKenna

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 Nordstrm and Jonas Ridderstrle, Funky Business

Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. What we are witnessing is a collapse of that advantage, prestige and authority.Michael Lewis, next

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

Welcome to D.I.Y. Nation:Changes in business processes will emphasize self service. Your costs as a business go down and perceivedservice goes up because customers are conducting it themselves.Ray Lane, Oracle

Psych 101: Strongest Force on Earth?My need to be in perceived control of my universe!

CRM has, almost universally, failed to live up to expectations.Butler Group (UK)

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.Rebuttal: (1) Service sucked in the pre-electronic age. (2) NewGen believes in the screen! (So do I.)

One Persons OpinionTP to reporter: Service is MUCH better! Would you go back to bank tellers and phone operators? Value that I place on a smile: 3 on a scale of 10. Value I place on fast & accurate digital response: 11 on a scale of 10!!

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

Here We Go Again: Except Its 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

Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the Coming Century

The Futility of Size [Regarding this issue] the new process of virtualization fully exerts itself. Virtualization is the recognition that territorial size does not solve economic problems. Economic access must become the substitute for economic domain.Richard Rosecrance, The Rise of the Virtual State

TP: Skill at creating, exploiting, and exiting crucial alliances beats ownership of fixed assets.

Whats the Common Denominator?The Dutch the British the Rothschilds Cargill Sumitomo the KGB the CIA Mossad Enron Wal*Mart McKinsey FedEx UPS Mr. Speaker Henry Kissinger Executive secretaries the Corner Grocer Women-in-general?

Masters of information acquisition, manipulation, dissemination, and utilization.Networkmeisters.Agile.Temporary.Virtual is thy name.Motto: Applied information is power/wealth.


5. The PSF Solution:The Professional Service Firm Model.

Sarah: Daddy, what do you do?Daddy: Im a cost center.

So what will be the Basic Building Block of theNew Org?

Every job done in W.C.W. is also done outside for profit!

Answer: PSF![Professional Service Firm]Department Headto Managing Partner, HR [IS, etc.] Inc.

TP to NAPM:Youare the Rock Stars of the B2B Age!

Message: You are Re-invention Evangelists!

TP to HRMAC:Youare the Rock Stars of the Age of Talent!


Talent Department

P.S.F.: SummaryH.V.A. Projects (100%)Pioneer ClientsWOW Work (see below)Hot Talent (see below)Adventurous cultureProprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++) When: Now!

BMWs Designworks/USA: >50% from outside work

G.M. = The Recruitment and Development of Top Talent. [Period!]V.C. = Bets on Talent. Bets on Projects. [Period!]

Dept. Head I = Sports G.M.Dept. Head II = V.C.

eHR*/PCC***All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

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 metalSource: BW/11.04.02

Model PSF

(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!

Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve 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:

What Do I Do First?One Minute Excellence!**Thomas Watson

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!

6. The Heart of the Value Added Revolution: PSFs Unbound/ The Solutions Imperative.

Base Case:The Sameness Trap

Companies have defined so much best practice that they are now more or less identical.Jesper Kunde, Unique now ... or never

While everything may be better, 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 onNightmare No. 1

When McDonalds first started exporting its formula of quality, cleanliness and service, it was something of a novelty. These days, quality, cleanliness and service are a givenand people are becoming more interested in what they are eating. FT/12.21.2002

Nobody brags about going to McDonaldsSF professional. Subway > McDs (USA).

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

This is a dying business. Everybodys going after the same writers, the same concepts, the same audience. Network TV exec, to Fortune (12 January 1998)

Getting Beyond Lip Service!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 its financial security, buying a car, paying for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group

We make over three new product announcements a day. Can you remember them? Our customers cant!Carly Fiorina

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 Nordstrm and Jonas Ridderstrle, Funky Business

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

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 cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats 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)? Its 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. Theyre 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 takenso its no longer remarkable when you decide to do it. Seth Godin, Fast Company/02.2003

The Internet is the most effective profit-killer on earth it stimulates a TRUE FREE MARKET; and a real free market is the most dangerous of marketplaces for companies selling the SAME OLD STUFF. To those with COURAGE, free markets are greatthey help kill off the deadwood competitors who dont have the courage to changemaking way for them to LEVERAGE their DRAMATIC DIFFERENCE into profitable growth.Doug Hall

Fight til Death!I thought, What a dreadful mission I have in life. Id love to get six-thousand restaurants up to spec, but when I do its Ho-hum. Its bugged me ever since. Its 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 Im going to fight it. Im going to die fighting it. Barry Gibbons

The Big Day!

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

These days, building the best server isnt enough. Thats the price of entry.Ann Livermore, Hewlett-Packard

Gerstners 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).

You are headed for commodity hell if you dont have services.Lou Gerstner on IBMs coming revolution (1997)

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

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 metalSource: BW/11.04.02

Everybodys Doin It!The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain.The Economist/01.11.2003

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

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

Keep In Mind: Customer Satisfactionversus Customer Success

Was: Big Iron Transformer Dudes Division.Is: Air Traffic Controllers of Electrons.

Was: Bunch of Guys Who Make Circuit Breakers Division.Is: GE Industrial Systems.

GEs New Six Sigma ApproachOld view: Out of service 9 days. 4 days are transport, which is client responsibility.New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days = Clients World.Source: Steve Kerr, VP, GE

E.g. UTC/Otis + Carrier: boxes to integrated building systems

Leased AC: Units of Coolth

Nardellis 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

John Deere Landscapes: This is our future.

A little-known fact: Siemens is now the worlds largest application service provider* to the health business. Digitally stored X rays, recordkeeping, the cameras that guide surgeons in the operating theaterall run on Siemens software. Forbes/09.16.2002*E.g.: Siemens is giving Health South an all-digital hospital of the future.

UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

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 its financial security, buying a car, paying for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group

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

Architecture is becoming a commodity. Winners will be Turnkey Facilities Management providers.SMPS Exec

We are a real estate facilities consulting organization, not just an interior design firm.Jean Bellas, founder, SPACE (from SMPS Marketer)

Omnicom: 57% (of $6B) from marketing services

And the Winners Are Televisions 12%Cable TV service +5%Toys -10%Child care +5%Photo equipment -7%Photographers 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

Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ Solutions/ Customer Success.

Model2002/3/4/5/??Dell* + IBM** = Magic*Cut (ALL) the bullshit**Add (LOTSA) soft/integrative/experiences value

The Seagate Exception. (Paradox? Possibility?)


1. Its 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.

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 & Ren Tissen, Zero Space: Moving Beyond Organizational Limits.

Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. Bill Owens, Lifting the Fog of War

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

12. All functions contribute equallyIS, 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.

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!

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

Supply Chain 2000:When Joe Employee at Company X launches his browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs 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 dont 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)


8. A World of Scintillating/ Awesome/ WOW Experiences.

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

Club Med is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new me. Source: Jean-Marie Dru, Disruption

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 thats not work or home. Its the place our customers come for refuge.Nancy Orsolini, District Manager

Guinness as a brand is all about community. Its about bringing people together and sharing stories.Ralph Ardill, Imagination, in re Guinness Storehouse

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


From Service to Cause7X. 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.

The Experience LadderExperiences ServicesGoods Raw Materials

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 allwork!

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

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

Experience It!Living Room, To Go: Cars of the future will be sanctuaries, with mood lighting, aroma therapy and massage seats. For long drives: movies and popcornheadline, Newsweek/11.25.2002

Lexus sells its cars as containers for our sound systems. Its marvelous.Sidney Harman/ Harman International

Its All About EXPERIENCES: Trapper to Wildlife Damage-control ProfessionalTrapper: <$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

Car designers need to create astory. Every car provides an opportunity to create anadventure. The Prowler makes yousmile. Why? Because its focused. It has aplot, a reason for being, apassion.Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): Only Words StoryAdventureSmile FocusPlotPassion

Its a question of how to marshal our resources. Id like us to bereally great in four or five areas.We have tomake some hard choices.The big challenge is,weve got to get a story about science thats completelyunderstandable.To get money in wholesale amounts, youve got to sell concepts.Larry Small, Smithsonian Institution

Plot It!Williams Sonoma 5Crate & Barrel 7+Smith & Hawken 8Sharper Image 9LL Bean 3

LAN Installation Co.toGeek Squad(2% to 30%/Minn.)

Music Worth Paying For: Paul McCartney, rapper Jay-Z and other acts beat the digital pirates by cashing in on concertsForbes cover/07.07.03

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

First Step (?!): Hire a theater director, as a consultant or FTE!

Experience Cirque du Soleil

DO YOU MEASURE UP?**If not, why not?

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

Quality Service... Superb, graceful, beautiful, divine, wonderful, an aesthetic gesture James Hillman, Kinds of Power

Lay-Z-BoyExperience = Brand = Expert Sales and Design Consultants + Unique In-store Design Tools + In-home Design Assistance + Superior Delivery + Satisfaction Guarantee + Pixie Dust

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.]

The SAU/Straight Academic UnderpinningThat people in an advanced economy spend more on weightless intangibles than on three-dimensional objects causes some folks of literal bent to feel vaguely uncomfortable, but the trend should be of no concern. The greater value, and more eager expenditure, comes in the psychological domain. Robert Reich

Extraction & Goods: Male dominanceServices & Experiences: Female dominance

Women dont buy brands. They join them.EVEolution

The Experience LadderExperiences ServicesGoods Raw Materials

Ladder PositionMeasureSolutions Success(Experiences)Services SatisfactionGoods Six-sigma


9. Experiences+: Embracing the Dream Business.

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

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

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

Emotional Design that Interprets DreamsZero defects: Only the starting point.Love at first sight.Design for the five senses.Develop to expand the Main Dream.Design so as to seduce through the peripheral senses.Source: Gian Luigi Longinotti-Buitoni

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

Constantly Magnify Perceived ValueMaximize your value-added by fulfilling the dreams of your clients.Only invest in what is valuable for your client.Dont 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 RISKSNO DREAMS.Establish long-term price power in order to avoid the trap of the commodity product.Source: Gian Luigi Longinotti-Buitoni

(Revised)Experience LadderDreams Come True Awesome ExperiencesSolutionsServicesGoodsRaw Materials

Safe, On-time and ...We defined personality as a market niche. We seek to amaze, surprise, entertain. Herb Kelleher, SWA / LUV

Furniture vs. DreamsWe 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

Pretzel Crumb-less-ness Plus ...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

Credo Update (P.C. Version)The Ritz Carlton experience ... conforms to requirements.

10. The [Mostly Ignored] Soul of Experiences: Design Rules!

Design Myths.

Unconventional [Design] MessagesNot about ... Lumpy Objects!Not about ... $79,000 objects

The I.D. [International Design] Forty*Airstream Alfred A. Knopf Apple Computer Bloomberg Caterpillar CNN DisneyFedEx Gillette IBM Martha Stewart New Balance Nickelodeon Patagonia The New York Yankees 3M Etc. * List No. 1, 1999

Unconventional [Design] MessagesNot about ... Lumpy Objects!Not about ... $79,000 objects

Design Transforms even the [Biggest] Corporations!TARGET the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)

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

Design2002LISTERINEs PocketPaks

Westins Heavenly Bed

Designs place in the universe.

And Tomorrow Fifteen years ago companies competed on price. Now its quality.Tomorrow its design.Robert Hayes

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

Design is treated like a religion at BMW.Fortune

The new Beetle fails at most categories. The only thing it doesnt fail in is drop-dead charm.Jerry Hirshberg, Nissan Design International

Auto Designers at Milan Fashion Shows!Welcome to the world of the celebrity car designer, a new breed increasingly responsible for the fortunes of the worlds big car companies. We live in a designer world, and the car designers are at its heart.The Economist/12.21.2002

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

The good 10 percent of American product design comes out of big-idea companies that dont believe in talking to the customer. They're run by passionate maniacs who make everybodys life miserable until they get what they want.Bran Ferren, Applied Minds/Wired 1-2001

We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. But to me, nothing could be further from the meaning of design. Design is the fundamentalsoul of a man-made creation.Steve Jobs

Check Out the Language:Tomorrow its design Design is the only thing Design is religion ...Drop-dead charm Object of desire Passionate maniacs Fundamental soul

Bottom Line.

Design is WHAT & WHY I LOVE. LOVE.

I LOVEmy ZYLISS Garlic Peeler!

All Time No.1 (TP)Ziplocs

Design is WHY I GET MAD. MAD.


Design is neverneutral.

Hypothesis:DESIGN is the principaldifference between love and hate!

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 doesnt. Furthermore, its another one of those things that damn few companies put consistently on the front burner.

Message (?????): Men cannot design for womens needs.

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 intuitionits female.Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

Step No. 1:NOTEBOOK POWER![Start recording the awesome & the awful]

User STOP BLAMING YOURSELF!(Don Norman/Design of Everyday Things)

The Designers RingFor years I thought that Dante should have established a designers ring in his Hell. If any designers 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 designers ring in Hell and forced to use that product for all of eternity. James Pirki, designer and professor, Syracuse University

Sometimes I have episodes of wild fury in rental cars. Its not road rage. Its more like design rage.Susan Casey,

Design Case I Thomas Hine: The Total Package: The Secret History and Hidden Meanings of Boxes, Bottles, Cans and Other Persuasive Containers

Packages have personality. They create confidence and trust. They spark fantasies. They move the goods!Thomas Hine/The Total Package

The most fundamental difference between a traditional market and the places through which you push your cart is that in modern retailing all the selling is done without people. It replaces people with packages. Thomas Hine/The Total Package

Oatmeal/1870: horses and a few stray ScotsOatmeal/1890/Quaker: a delicacy for the epicure, a nutritious dainty for thr invalid, a delight to the childrenDifference: Packaging!Thomas Hine/The Total Package

During the thirty minutes you spend on an average trip to the supermarket, about thirty thousand different products vie to win your attention and ultimately to make you believe in their promise. When the door opens, you enter an arena where your emotions are in playand a walk down the aisles is an exercise in self-definition. Few experiences in life offer the visual intensity of a Safeway, a Krogers. Thomas Hine/The Total Package

Research: customers aware of 11,000 packages in 1,800 seconds walking the aisles.Opportunity= 1/6th second! Source: Thomas Hine/The Total Package

Packaging strives at once to offer excitement and reassurance. It promises something newer and better, but not necessarily different. When we talk about a tourist destination, or even a presidential contender, being packaged thats not really a metaphor. The same projection of intensified ordinariness, the same combination of titillation and reassurance, are used for laundry detergents, theme parks and candidates alike.Thomas Hine/The Total Package

Whats important to recognize is that fast-food and hotel chains are not like packages, but that they are packagespackaged places and experiences.Thomas Hine/The Total Package

One, consumers really do not distinguish between a product and its package. Two, consumers relate emotionally not to the facts (the realities) of the product/packages they are involved with, but rather to their perceived realities. Walter Stern in Thomas Hine/The Total Package

11. Design+ = Beautiful Systems.

Fred S.s mediocre thesis. Herb K.s napkin.

Great design = One-page business plan (Jim Horan)

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%.

Systems: Must have. Must hate. / Must design. Must un-design.

Mgt. Team includes EVP (S.O.U.B.)

Executive Vice President, Stomping Out Unnecessary Bullshit

Ninety percent of what we call management consists of making it difficult for people to get things done. P.D.

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.

WasDeposits 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.

IsMinors may make deposits and withdrawals from their accounts without the consent or interference of a parent or guardian.

WasThis 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 Members 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

IsIf 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

12. It all adds up to THE BRAND.

The Heart of Branding


Most companies tend to equate branding with the companys marketing. Design a new marketing campaign and, voil, youre on course. They are wrong. The task is much bigger. It is about fulfilling our potential not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE?WHAT DO I WANT TO CONVEY TO PEOPLE?HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether or not you want to be UNIQUE NOW.Jesper Kunde, Unique now ... or never


We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others.Companies will thrive on the basis of their stories and myths.Companies will need to understand that their products are less important than their stories.Rolf Jensen, Copenhagen Institute for Future Studies

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




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 Dont Get It: See the next slide.)Source: Jump Start Your Business Brain, Doug Hall

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

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

A great company is defined by the fact that it is not compared to its peers.Phil Purcell, Morgan Stanley

Brand = You Must Care!Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.Tom Chappell, Toms of Maine

Were not going to be driven by where we think a funding agency would like to see us go. Were going to build our case and then find an organization that agrees with us.Stephen Spongberg, Polly Hill Arboretum



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!

Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency& freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding cant be faked. REAL Branding is a systemic, 24/7, all departments, all hands affair.

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

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

Message Is Not >> Is

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

What Can [Cant] 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


13. Trends I: Women Roar.

Women & the Marketspace.

?????????Home Furnishings 94%Vacations 92% (Adventure Travel 70%/ $55B travel equipment)Houses 91%D.I.Y. (home projects) 80%Consumer Electronics 51% Cars 60% (90%)Allconsumerpurchases 83%Bank Account 89%Health Care 80%


Riding Lawnmowers

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

1970-1998Mens median income: +0.6%Womens median income: + 63%Source: Martha Barletta, Marketing to Women

$4.8T > Japan9M/27.5M/$3.6T> Germany

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 worldwideSource: Martha Barletta, Marketing to Women

New golfers 37%Basketball 13.5M1 in 27 (70) 1 in 3 (96)


1874 Jock Strap1977 Jogbra1977 ... 25K1996 42M

Yeow!1970 1%2002 50%

OPPORTUNITY NO. 1!*[* No shit!]

91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.)Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women)

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

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

FemaleThink/ PopcornMen and women dont think the same way, dont communicate the same way, dont buy for the same reasons.He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.

Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They usually dont like asking where things are. Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly hes ready to buy. For a man, ignoring the price tag is almost a sign of virility.Paco Underhill, Why We Buy*(*Buy this book!)

Shopping: A Guys Nightmare or a Girls Dream Come True?Buy it and be gonevs.Hang out and enjoy the experienceSource: The Charleston [WV] Gazette/06.22.2002

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

Not a Morality PlayIt 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. Were marketing to women entrepreneurs because it is a huge opportunity. Cherie Piebes

Women's View of Male SalespeopleTechnically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to womens needs.Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

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

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

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)

Read This:Barbara & Allan Peases Why Men Dont Listen & Women Cant Read Maps

It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

Resting State: 30%, 90%: A woman knows her childrens 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 Dont Listen & Women Cant Read Maps

As a hunter, a man needed vision that would allow him to zero in on targets in the distance whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers.Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

Female hearing advantage contributes significantly to what is called womens intuition and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldnt despair. They are excellent at imitating animal sounds.Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

SensesVision: Men, focused; Women, peripheral.Hearing: Womens discomfort level I/2 mens.Smell: Women >> Men.Touch: Most sensitive man < Least sensitive women.Source: Martha Barletta, Marketing to Women

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

Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps:Women love to talk.Men talk silently to themselves. Women think aloud. Women talk,men feel nagged. Women multitask. Women are indirect.Men are direct. Women talk emotively,men are literal. Men listen like statues. Boys like things,girls like people. Boys compete, girls cooperate.Men hate to be wrong. Men hide their emotions.

When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap.Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps

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

We Really Dont Get It!Review of Unfaithful: the latest entry in the category of male directors clueless fantasies concerning what women fantasize about in their nonexistent free time.Source: Julie Iovine, NYT (05.19.2002)

Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave their mate. WOMEN: women controlled by the men in their lives, who would rather be dead than oppressed.Source: Judy Rosener, Americas Competitive Secret

[The Hollywood scripts that men write tend to be direct and linear, while womens compositions have many conflicts, many climaxes, and many endings.Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World]

Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.Judy Rosener, Americas Competitive Secret

I only really understand myself, what Im really thinking and feeling, when Ive 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

Editorial/Men: Tables, rankings.*Editorial/Women: Narratives that cohere.**Redwood (UK)

Initiate PurchaseMen: Study facts & features.Women: Ask lots of people for input.Source: Martha Barletta, Marketing to Women

Storytelling: Men start with the headline. Women start with the context.Source: Martha Barletta, Marketing to Women

Tomboy Tools. E.g.: smaller, lighter in weight. Tupperware party model.

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

Women werent comfortable in our stores. So I figured out where they would be comfortablemost likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have furnishings, not fixtures. Above all, I didnt want it to be girlie. John Hoke, designer, Nike

Read This Book EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys Marigold

EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand

The Connection Proclivity in women starts early. When asked, How was school today? a girl usually tells her mother every detail of what happened, while a boy might grunt, Fine. EVEolution

What If 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 todays skills?EVEolution


The New New Jiffy LubeIn the male mold, Jiffy Lube wasgoing all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the lets get it fixed fast, no conversation required experience.New JL: Control over her environment. Comfortin the service setting. Trust that her car is being serviced properly. Respectfor her intelligence and ability.EVEolution

Lowes Gets it. 1989: 13%/lumber shop 2002: >50%

War has broken out over your home-improvement dollar, and Lowes has superpower Home Depot on the defensive. Its not-so-secret ploy: Lure

Home Depot is still very much a guys chain. But women, according to Lowes 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. Dont get me wrong, but women are far more discriminating than men, says CEO Robert Tillman, 59, a Lowes lifer.

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

Mattel Sees Untapped Market for Blocks: Little GirlsHeadline, WSJ/04.06.02Last year more than 90% of Lego sets purchased were for boys. Mattel says Ellowith interconnecting plastic squares, balls, triangles, squiggles, flowers and sticks, in pastel colors and with rounded cornerswill go beyond Legos linear play patterns.

Women dont buy brands. They join them.EVEolution

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

Not!Year of the Woman

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

Honey, are you sure you have the kind of money it takes to be looking at a car like this?

STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick. My game is haranguing business leaders about my fact-based conviction thatwomens increasing power leadership skills and purchasing power is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Alto resident THIS IS EVEN BIGGER THAN THE INTERNET!Tom Peters

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

If we are single, they say we couldnt catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldnt keep him. If we are widowed, they say we killed him.Kathleen Brown, on the joys of female political candidacy

Psssst! Wanna see my porn collection?

Norwegian Law: Boards must have at least 40% women.

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 its in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. Thats what Super Saver is. All the signage is in both languages. Theres a 100 percent Spanish-speaking staff in the store.Larry Johnston, CEO, Albertsons

Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership TeamIn 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**Wouldnt you love to watch him tell that face-to-face to Margaret Thatcher or Carly Fiorina? (I would.)

Ad from Furniture /Today (04.01):MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that WayPresentingExperts: M = 16;F = ?? (94% = 272)


Each time a womens movie is a success [e.g., First Wives Club] everybody is surprised all over again. But if any action movie is a hit, it instantly spawns a dozen knockoffs.Exec [F], major Hollywood studio


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!

Instructions: 1. Purchase ticket to symphony 7:30 p.m. show. 2. Drink three large bottles of water between 3 p.m. and 7 p.m. 3. X-dress. 4. Wait in queue at Ladies at Intermission. 5. Realize what total wretches you are. 6. Seize a microphone and apologize publicly to every woman in the hall.

Customer is King: 4,440Customer is Queen: 29Source: Steve Farber/Google search/04.2002


Women Beat Men at Art of InvestingSource: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis(Cause: Guys are in and out of stocks more often; women choose carefully and hold on for the long term)

Investment Club ReturnsWomen-only clubs 1997 17.9%Mixed 17.3%Men-only 15.6%Source: National Assoc. Investors

Value Line: Top State* Investment Clubs 20008 All male19 Coed22 All FEMALE* VT & Maine not included; D.C. included

JBQ: Stop Treating Women Investors Like Idiots!Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe theyre smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives.Source: Newsweek 01.08.01

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 youll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, dont let her slip away.--Women ARE the long run!Source: Martha Barletta, Marketing to Women

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. Womens Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Womens Market = Opportunity No. 1.

14. Trends II: Boomer Bonanza/ Godzilla Geezer.

Subject: Marketers & StupidityIts 18-44, stupid!

Subject: Marketers & StupidityOr is it:18-44 is stupid, stupid!

2000-2010 Stats18-44: -1%55+: +21%(55-64: +47%)

Aging/Elderly$$$$$$$$$$$$Im in charge!

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

Member Growth: 1987 199718 34: 26%35 49: 63%50+: 118%Source: IHRSA

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

Advertisers pay more to reach the kid because they think that once someone hits middle age hes 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 Hollywoods cult of youth.James Surowiecki (The New Yorker/04.01.2002)