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NOTE : To appreciate this presentation [and insure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”. Part 4 Tom Peters’ EXCELLENCE. ALWAYS. New Master/21 August 2008. Slides at … tompeters.com.

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NOTE:To appreciate this presentation [and insure that it is not amess], you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller”and “Verdana”

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Ten PartsP1.1, P1.2, P1.3, P1.4/GenericP2/LeadershipP3/TalentP4/“Value-added Ladder”P5/“New” Markets P6/“The Equations”P7.1/ImplementationP7.2/ActionP8/13 “Guru Gaffes”P9/Health“care”P10/“The Lists”

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California Closets:“a whole-life upgrade, not just a tidy bedroom.”—WSJ/0329.07, “Why the Container-Store Guy Wants to Be Your Therapist”

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I. LAN Installation Co. (3%)II. Geek Squad. (30%.)III. Acquired by BestBuy.IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.

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“ ‘Results’ are measured by the success of all those who have purchased your product or service”—Jan Gunnarsson & Olle Blohm, The Welcoming Leader

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“He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life.Because his sole concern had been my welfare and the success of my business.”—Jim Penman, on learning how to sell (What Will They Franchise Next? The Story of Jim’s Group)

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The Value-added Ladder/ OPPORTUNITY-SEEKINGCustomer Success/ Gamechanging SolutionsServicesGoods Raw Materials
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“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%)—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

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The Value-added Ladder/ OPPORTUNITY-SEEKINGImplemented Gamechanging SolutionsServicesGoods Raw Materials
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Core Mechanism:“Game-changing Solutions”PSF(Professional Service Firm “model”/The Organizing Principle)+Brand You(“Distinct” or “Extinct”/The Talent) +Wow! Projects (“Different” vs “Better”/TheWork)

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Series/Reinventing WorkThe Project 50: Fifty Ways To Transform Every “Task” Into A Project That MattersThe Professional Service Firm 50: Fifty Ways To Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion And InnovationThe Brand You 50: Fifty Ways To Transform Yourself From An “Employee” Into A Brand That Shouts Distinction, Commitment And Passion

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Are you the …“Principal Engine of Value Added”*E.g.: Your R&D budget as robust as the New Products team?
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Agriculture Age (farmers)Industrial Age (factory workers)Information Age (knowledge workers)Conceptual Age*(creators)*Murakami Teruyasu: “Age of Creation Intensification”Source: Dan Pink, A Whole New Mind

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The PSF35: The Work & The Legacy1.CRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight

words or less, you don’t have a position”—Seth Godin)2. DRAMATIC DIFFERENCE (“We are the only ones who do what

we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling

“Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change

the World)6. Small “Uneconomic” Clients with Big Aims

7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the

Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/

I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”

10. Consistent with #9 above … DO NOT SHY AWAY FROM THE

WORD (IDEA) “RADICAL”

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“Purchasing Officer” Thrust #1:Cost (at All Costs*) Minimization Professional?Or/to:FullPartner-Leader in Lifetime Value-added Maximization?(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

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Fleet ManagerRolling Stock CostMinimization Officervs/orChief of Fleet Lifetime Value MaximizationStrategic Supply-chain ExecutiveCustomer Experience Director (via drivers)

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HCare CIO: “Technology Executive”(workin’ in a hospital)Or/to:Full-scale, Accountable(life or death)Member-Partner of XYZ Hospital’s Senior Healing-Services Team(who happens to be a techie)

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Big Idea:“Corporation” as Mega-“PSF”(Professional Service Firm*)* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)

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Are you the …“Principal Engine of Value Added”*E.g.: Your R&D budget as robust as the New Products team?
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“Experiences are as distinct from services as services are from goods.”—Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

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

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Q: “Why did you buy Jordan’s Furniture?”A: “Jordan’s is spectacular.It’s all showmanship.”Source: Warren Buffet interview/Boston Sunday Globe/12.05.04

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

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The Value-added Ladder/ MEMORABLE CONNECTIONSpellbinding ExperiencesGamechanging SolutionsServicesGoods Raw Materials
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Beyond the “Transaction”/ “Satisfaction” Mentality“Good hotel”/ “Happy guest”/“Exceeded Expectations”vs.“Great Vacation”/ “Great Conference”/ “Operation PersonalRenewal”

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

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“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.]

perfection is achieved only by institutions on the point of collapse c northcote parkinson
“Perfection is achieved only by institutions on the point of collapse.”— C. Northcote Parkinson
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3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea CultureSource: Title/Cover Story, BW, 0611.07 (“What’s remarkable is how fast a culture can be torn apart,” 3M lead scientist; “In an innovation economy, [6 Sigma] is no longer a cure all”/BW)

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“What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.”—Kakuzo Okakura, The Book of Tea

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“Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been washed for the third time, the stone planters and the trees are well sprinkled with water, moss and lichens are shining with a fresh verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.”—Kakuzo Okakura, The Book of Tea

planetree a radical model for new healthcare healing wellness excellence
Planetree: A Radical Model for New Healthcare/Healing/Wellness Excellence
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"All sane persons agree that 'healthcare needs an overhaul.' And that's where the agreement stops. Healthcare issues are thorny, and system panaceas are about as likely as the sun rising in the West. But there is good news here and there--and great news courtesy the Planetree Model.

"In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the patient and frontline staff often get lost in the shuffle. Enter Planetree. While oceanic systemic solutions remain out of reach, Planetree provides a remarkable demonstration of what healthcare--with the patient at the center--can be all about; and is all about among Planetree Alliance members.

"I know this may sound ridiculous, but everything about the 'model' works. It is great for patients and their families--and is truly about humanity and healing and health and longterm wellness, not just a 'fix' for today's problem. It is great for staff--Planetree-Griffin is rightly near the top of the 'best places to work in America' list, year in and year out. And Planetree also works as a 'business model'--any effectiveness measure you can name is in the Green Zone at Griffith.

"For 25 years my 'gig' has been 'excellence.' Put simply, there is no better exemplar of customer-centered, employee-friendly excellence, in any industry, than Griffin-Planetree. The Planetree model works--and in my extensive work in the health sector, I 'sell' it shamelessly, and pray that my clients are taking it all in."

tom peters/response to request for comment on Planetree

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The 9 Planetree Practices1.The Importance of Human Interaction2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information3. Healing Partnerships: The importance of Including Friends and Family4. Nutrition: The Nurturing Aspect of Food5. Spirituality: Inner Resources for Healing6. Human Touch: The Essentials of Communicating Caring Through Massage7. Healing Arts: Nutrition for the Soul8. Integrating Complementary and Alternative Practices into Conventional Care9. Healing Environments: Architecture and Design Conducive to HealthSource: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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The Patient-Family Experience“Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.”—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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Press Ganey Assoc:139,380 former patients from 225 hospitals:noneof THE top 15 factors determining Patient Satisfaction referred to patient’s health outcomePSdirectly related to StaffInteractionPSdirectly correlated with Employee SatisfactionSource: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.”—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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Care Partner Programs(IDs, discount meals, etc.)Unrestricted visits(“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members may be present.”)Collaborative Care ConferencesClinical Guidelines DiscussionsFamily SpacesPet Visits(POP: Patients’ Own Pets)Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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Griffin:Music in the parking lot; professional musicians in the lobby(7/week, 3-4hrs/day) ; 5 pianos; volunteers(120-140 hrs arts & entertainment per month).Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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“Planetree Look”Woods and natural materialsIndirect lightingHomelike settingsGoals: Welcome patients, friends and family … Value humans over technology .. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beautySource: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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Access to nurses station:“Happen to”vs“Happen with”Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
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“It was the goal of Planetreeto help patients not only get well faster but also to stay well longer.”—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Planetree Alliance/Griffin Hospital)

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Care!/Love!/Spirit!Self-Control!Connect!/learn!/involve!/Engage!Understanding!/Growth! De-stress!/heal! Whole patient & family & friends! be well!/stay well!

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“Planetree is about human beings caring for other human beings.”—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)

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Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results:Financially successful. Expanding programs-physically. Growing market share. Only hospital in “100 Best Cos to Work for”—7 consecutive years, currently #6.—“Five-Star Hospitals,” Joe Flower,strategy+business (#42)

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“What’s Really Propping Up the Economy: Healthcare has added 1.7 million jobs since 2001. The rest of the private sector? None.”Source: Title, cover story, BusinessWeek, 0925.2006

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“We defy conventional wisdom, operating more like the young bucks at Starbucks than the old farts at the Bank of America.”—Vernon Hills
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The Commerce Bank Model“Are you going to costcut your way to prosperity?Or …are you going to spend your way to prosperity?”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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The Commerce Bank Model*deposit focused.*Customer value-added.*Great retail experience.*Best facilities. Best locations.*No stupid rules.*Driven by revenue growth, not cost reduction.Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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The Commerce Bank Model“cost cutting is a death spiral.”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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“Our whole story is growing revenue.”—Vernon Hills (Top-line driven; standard is bottom-line driven by cost cutting)
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The Commerce Bank Model“over-invest in our people, over-invest in our facilities.”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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The Commerce Bank Model“we want them in our stores.”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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Commerce Bank: From “Service” to “Experience”7X. 730A-800P. F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

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The Commerce Bank Model “we don’t accept the 80/20 theory. We believe every customer has value, that you can’t tell which one is the high-value customer over time, and that that philosophy degrades the brand.”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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The Commerce Bank Model“every computer at commerce bank has a specialredkey on it that says, ‘found something stupid that we are doing that interferes with our ability to service the customer? Tell us about it, and if we agree, we will give you $50.’”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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“You do not merely want to be the best of the best.You want to be considered the only ones who do what you do.”—Jerry Garcia
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The Value-added Ladder/ MEMORABLE CONNECTIONSpellbinding ExperiencesGamechanging SolutionsServicesGoods Raw Materials
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All Equal Except …“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.Design is the only thing that differentiates one product from another in the marketplace.”—NorioOhga

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“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design.Design is the fundamentalsoul of a man-made creation.”—Steve Jobs

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“You knowa design is goodwhenyou want to lick it.”—Steve Jobs

Source: Design: Intelligence Made Visible,

Stephen Bayley & Terence Conran

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“With its carefully conceived mix of colors and textures, aromas and music,Starbucksis more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. …‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’writes CEO Howard Schultz.”-—Virginia Postrel, The Substance of Style: How the Rise of AestheticValue Is Remaking Commerce, Culture and Consciousness

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“Having spent a century or more focused on other goals—solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel.Whenever we have the chance, we’re adding sensory, emotional appeal to ordinary function.”— Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness

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“Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.”—Roger Martin/Dean/Rotman Management School/University of Toronto

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

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Better By Design: Tom’s Design491. There are only 2 rules.2. Rule #1: You can’t beat Wal*Mart on price or China on cost.3. Rule #2: See Rule #1.4. Econ Survival = Innovate and Sprint Up the Value-addedChain … OR DIE!5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE “SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.6. Design as Soul-Core Competence #1 is a “cultural imperative,” not a “programmatic” or “process” or“throw $$$ at it” issue!7. CDEs (Culturally Design-driven Enterprises) use Design-Experiences-Dream Merchantry-Lovemarks as the LeadDog(s) in the OlympianInnovation-“Strategy”-ValueProposition Struggle.8. “Dream Merchant” makes as much sense for IBM or GE or UPS as for Starbucks!

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Better By Design: Tom’s Design499. At CDEs, Design is the Heart of the “Emotional Branding” Process.10. CDEs wholeheartedly embrace ideas such as “mystery,” “surprise,” sensuality.”11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great”and “Gasp-worthy” and “Passion” and “Love”! (Axiom: Extreme language breeds extreme products and services.)12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise = Crappy enterprise.)13. CDEs love “strange” and “weird.”14. CDEs scour the earth for “strange” and “weird” people. (CDEs know: FREAKS RULE!)15. CDEs are “extremists.” (KR: “Avoid moderation.”)16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH!(We must use non-linear measures!)

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Better By Design: Tom’s Design4917. CDEs seek Discontinuities. (JG: “We don’t want to be the best of the best, we want to be the only ones who do what we do.”) 18. CDEs are “respectful” of their customers, but not slaves to their customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: “Listening to customers” is over-rated! Focus groups suck!)19. But: “Lead” customers are an entirely different matter!20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo Brand”!)21. CDEs abide by Phil Daniels’ Credo: “REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES.”22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she is the CEO).23. Design Directors at large companies not worth $5,000,000per year aren’t worth hiring! (DD$21M.)

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Better By Design: Tom’s Design4924. Great Designers are “10,000X” better than “good designers.”25. At CDEs CFOs are never former CFOs! The CEO always doubles as the Chief Innovation Officer.26. CDEs are “Top-line Obsessed.”27. CDE execs know there is a chasm between “excellent design” and “game-changer design.”28. Gasp-worthy design is a moving target!29. No Broadway shows last forever. So too, great designers!(Hire them! Pay them! Cherish them! Nurture them! Fire them!)30. Great design wrestles incessantly with the issue of “cool” and/versus “usability.”! 31. Designers “get” the stunning principles of Wabi Sabi. (Great designers side with Chris Alexander against the A.I.A.)32. CDEs “get” the “feminine side” of life.

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Better By Design: Tom’s Design4933. CDEs Know I: WOMEN BUY EVERYTHING!34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. 35. CDEs understand that “We’re getting’ older”—and vigorously embrace the Boomer-Geezer market.36. CDEs understand: Boomers-Geezers have “ALL THE MONEY” … are by and large healthy … and have 20 or so years left!37. CDEs wonder: Can 28-year-olds design “experiences” for 68-year-olds?38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-Greenie-Wellness.39. “Design-mindfulness” is as apparent in the CDE’s facilities as in its products-services!

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Better By Design: Tom’s Design49

40. “Design mindfulness” is as apparent in HR and Engineering and Logistics and IS/IT as in NPD.41. CDEs will settle for nothing less then “beautiful,” “gasp-worthy” Business Processes/Infrastructure!42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!) (450/8.)43. “Design-mindfulness”/“aesthetic sensibility” is a requisite for Every Hire—including waiters and waitresses in Fast Food outlets and Housekeepers in hotels.

44. Gasp-worthy Design is as essential to “service companies” as to “manufacturers.”45. Gasp-worthy design can transform any “commodity,” including ag!

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Better By Design: Tom’s Design49

46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER.47. “Small” is no disadvantage in an Age of Creativity!

48. There is no such thing as a “National Design Advantage” unless the current school system is Destroyed & Re-imagined—to emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness … the suppression thereof … typically begins at Age 4.)

49.How sweet it is!

(If your head is screwed on right.)

first steps beauty contest
First Steps: “Beauty Contest”!

1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form.

  • 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!

  • Repeat, with a new selection,

every 15 working days.

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“One bank is currently claiming to … ‘leverage its global footprint to provide effective financial solutions for its customers by providing a gateway to diverse markets.’”

—Charles Handy

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“I assume that it is just saying that it isthere to‘help its customers wherever they are’.”

—Charles Handy

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“Seek honest, minimalist management. Look for companies run by a team that explains things clearly and briefly. … You can tell a lot about the firm by reading an annual report or two. If management can’t explain the business in plain English, move on to another firm. If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.” —Seth Jayson, “Stocks for the Lazy Investor,” The Motley Fool

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Furniture vs. Dreams“We do not sell ‘furniture’ at Domain.We sell dreams.This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks.We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.”— Judy George, Domain Home Fashions

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

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

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Starbucks = ShaperofCulture: “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.”—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

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The Value-added Ladder/EMOTIONDreams Come TrueSpellbinding Experiences Gamechanging SolutionsServicesGoods Raw Materials
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Six Market Profiles1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for ConvictionsRolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

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Six Market Profiles1. Adventures for Sale/ IBM-UPS2. The Market for Togetherness, Friendship and Love/ IBM-UPS3. The Market for Care/ IBM-UPS4. The Who-Am-I Market/ IBM-UPS5. The Market for Peace of Mind/ IBM-UPS6. The Market for Convictions/ IBM-UPSRolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

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

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

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“Brands Are Out of Juice”1. Brands are worn out from overuse.2. Brands are no longer mysterious.3. Brands can’t understand the new consumer.4. Brands struggle with good old-fashioned competition.5. Brands have been captured by formula.6. Brands have been smothered by creeping conservatism.Source: Lovemarks: The Future Beyond Brands, Kevin Roberts

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“When I first suggested that Love was the way to transform business, grown CEOs blushed and slid down behind annual accounts. But I kept at them. I knew it was Love that was missing. I knew that Love was the only way to ante up the emotional temperature and create the new kinds of relationships brands needed. I knew that Lovewas the only way business could respond to the rapid shift in control to consumers.”—Kevin Roberts/Lovemarks

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Brand …………………………………………………. LovemarkRecognized by consumers ………………. Loved byPeopleGeneric ………………………………………………… PersonalPresents a narrative ………………….. Creates a Love storyThe promise of quality ……………… A touch of SensualitySymbolic ………………………………………………….. IconicDefined ………………………………………………….. InfusedStatement ………………………………………………….. StoryDefined attributes ……………………... Wrapped in MysteryValues ………………………………………………………. SpiritProfessional …………………………... Passionately CreativeAdvertising agency ………………………….. Ideas companySource: Kevin Roberts, Lovemarks

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“When we were working through the essentials of a Lovemark, Mysterywas always at the top of the list.”—Lovemarks: The Future Beyond Brands, Kevin Roberts

lovemarks are owned by the people who love them lovemarks the future beyond brands kevin roberts
“Lovemarks are owned by the people who love them.”—Lovemarks: The Future Beyond Brands, Kevin Roberts
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“Shareholders very seldom love the brands they have invested in. And the last thing they want is an intimate relationship. They figure this could warp their judgment. They want measurability, increasing returns (always) and no surprises (ever). Imagine a relationship with someone like that!“No wonder so many brands lost the emotional thread that had led them to their extraordinary success and turned them instead into metric-munchers of the lowest kind. Watch for the sign: HEADS, NOT HEARTS, AT WORK HERE.”—Lovemarks: The Future Beyond Brands, Kevin Roberts

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

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The Value-added Ladder/ ECSTASYLovemarkDreams Come True Spellbinding ExperiencesCustomer Success: Implemented Gamechanging SolutionsServicesGoodsRaw Materials

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Ladder.2008: 4 of 7!Lovemark Dreams Come True Spellbinding ExperiencesGamechanging SolutionsServicesGoodsRaw Materials
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New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths!Lovemark/FDreams Come True/F Spellbinding Experiences/FGamechanging Solutions/FServices/FGoods/MRaw Materials/M

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“What Isn’t Matter Is What Matters”—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

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Ladder.2007: 4 of 7!Lovemark Dreams Come True Spellbinding ExperiencesGamechanging SolutionsServicesGoodsRaw Materials