Excellence 2008: value-added By Design Tom Peters/for the Korea Design Forum 2008
NOTE:To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller”and“Verdana”
Aucklandtaipei/vpsingaporebangkokflandersamsterdambarcelonalisbondublinbuenos airessao paulolondonmilanmexico d.f.istanbuldubaiomanusastockholmshanghaiMauritiusjohannesburgbucharest
56 Random Thoughts on Design Tom Peters/for the Korea Design Forum 2008
56 Random Thoughts on Design **“Great things” are more valuable than not-so-great things. **“It” is everything. **Everybody’s doin’ it. **If “everybody’s doin’ it,” then how do we do it differently-sustainably? **Everybody will do “it” differently. (Sorta— “design zealots” in Japan are about the same as design zealots in Italy.) **“It” works only if it is “a way of life.” (Apple, BMW, Cirque du Soleil) **Consider my term-of-choice: “Design- mindedness.” (Design-mindedness is an attitude.) **“It” does not work if it is a “program.”
**It is not about recruiting a rock star designer—this may be counterproductive, at least at first. **“Dreamers with deadlines”—creative & loose … with deliverables. **It’s already faddish. **Don’t try to “engineer it”—there is an essential “spontaneity” dimension. (SWA) **In the case of goods, it starts with the vendors and especially includes packaging and delivery folks and parking lot attendants—think Disney and gum and the Orlando airport.
**In the long run, the “Mittelstand” will make the difference! **Acquiring design firms is tricky. **There are no “exempts”—“it” applies as much, albeit in a different way, in purchasing as in marketing. **IT IS NOT ABOUT MARKETING! (Except a little bit.) **The entire supply chain must be on board. **As always, “MBWA” rules—embedding something new in a culture is a “walk around” affair. **“It” is about the way every individual conducts himself or herself. (E.g., hotel housekeeper)
**Aesthetics and usability are equally important—with perhaps a slight edge to usability.” (“ ‘It won a prize’ is the ultimate criticism”—DN) **There is a “bet the farm” element at play— Dubai, Apple. **There must be a far higher than normal dose of autonomy—in the end this is about “value- added through creativity.” **“It” must show up in the schools by age 5. **“It” becomes the chief organizing principal for education. **When it comes to aesthetics, you get most of “it” from the genes you were dealt.
“Every child is born an artist. The trick is to remain an artist.”—Picasso
**Beware of engineers! (Said with affection— I am one.) **Beware of MBAs (Said with no affection, even though I am one.) **The education bit is less about aesthetics and more about encouraging individualism— to take a risk on design, you must have a burning desire to do things differently. (Schools—ours, yours, everyone’s—are brilliant at suppressing creativity and excessive shows of passion.) **Capturing “best practice” only goes so far. **“Six Sigma” can be a deadly enemy.
**In “design world”: Gender differences are … enormous. **Women buy stuff, hence women must design stuff. (And be very amply represented in management ranks—for reasons of profit, not social justice.) **Think: Women!!!!!!!!!!!! **If you are interested in selling to Europe and the U.S. and Japan (etc) then you must explicitly (!!!) focus on the over 50 market (think “7/13”)
**If you are serious, the Chief Design Officer (Chief Experience Officer”) must sit at the same level as the CFO. So, too the Chief People Officer!!!! **“It” must be on every (literally) agenda; in project reviews of every type it must hold its own with, say, the budget discussion. **You’ll never be able to explain it to the analysts. **Steve Jobs is lucky—as well as good. **Steve Jobs is too abnormal to learn from. **Design competitions at all levels of society- business must be very big deals.
**Buy art. (All businesses of all sizes.) **In the public sector, it starts at the airport for foreign visitors especially—an experience that includes traffic, air quality, etc. **You can do a lot for 2-cents! **And don’t ignore with the subway map. **Or the public toilets. **Be merciless about urban trash—spend yourself poor on this if necessary. **Good design transforms healthcare facilities (especially hospitals)—and abets healing. **Good design in eldercare facilities extends life and enhances quality of life.
**Small things are often (usually?) more important than big things. **“Design Is Free” is closer to the truth than you would think. **Throwing money at problems is almost always a dumb thing to do—Design Excellence included. **Training in “service excellence” is often a better “design investment” than capital spending.
**This ain’t limited to global enterprises. **The overall quality of small firms equals (exceeds?) the “value added” by big firms. **Gandhi and Mandela and Churchill and JFK and Reagan and Thatcher and Sarkozy and Franklin and Washington set the tone to an incredible degree—their “personal style” was their “brand.” (“It” starts with personal style of the tip-top leadership team. Sorry to be politically insensitive, but who would give a hoot about Tibet if it weren’t for the look and style of the Dalai Lama?) Boss: You’re either on the “it” boat—or not.
EXCELLENCE. VALUE ADDED.UP THE LADDER.4 of 7.Tom Peters for the Korea Design Forum 2008
The Value-added Ladder/ “BEDROCK” Raw Materials**Farmers and Miners (“Degree”: Weightlifting)
The Value-added Ladder/ THINGSGoods*Raw Materials*Engineers and Factory Workers (Degree: Engineering)
The Value-added Ladder/TRANSACTIONSServices*Goods Raw Materials *Clerks (Degree: Process Engineering)
“THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.”:“IPM [Integrat5ed Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008
IBMHPSchlumbergerGE EnergyGE InfrastructureUPSMasterCardetc.etc.etc.etc.
“ ‘Results’ are measured by the success of all those who have purchased your product or service”—Jan Gunnarsson & Olle Blohm, The Welcoming Leader
“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
The Value-added Ladder/TRANSFORMATIONCustomer Success through Implemented Gamechanging Solutions*ServicesGoods Raw Materials *Subject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organizational Psychology)
Are you the …“Principal Engine of Value Added”*E.g.: Your R&D budget as robust as the New Products team?
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)
The“PSF35”: Thirty-Five Professional Service Firm Marks of Excellence
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”
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)
“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
“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
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
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
The Value-added Ladder/ MEMORABLE CONNECTIONSpellbinding Experiences*Customer Success/Implemented Gamechanging SolutionsServicesGoods Raw Materials*Theatrical Skills (Degree: Theater Arts)
Beyond the “Transaction”/ “Satisfaction” Mentality“Good hotel”/ “Happy guest”/“Exceeded Expectations”vs.“Great Vacation”/ “Great Conference”/ “Operation PersonalRenewal”