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distinct or extinct tom peters seminar2000 lessons in leadership san francisco 15september2000
Distinct or … ExtinctTom Peters Seminar2000LESSONS IN LEADERSHIPSan Francisco15September2000
slide3

“Dumb Jerk of the New Millennium” Gold Medal!“Firestone Chief: I’m Sorry. He says that motorists are partly to blame for the problems, though.”Headline, front section, Des Moines Register, 09.07.2000

slide5

N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.Auto-dimmingEmergency assistanceCell phones, Voice mail, email, Internet access

slide6

Levi’s and PhilipsStephano Marzano (Philips Design), Levi Strauss, Italian designer Massimo Ossi: jacket with cell phone and MP3 player built into pockets!Source: Red Herring (09.00)

slide7

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19Source: Fortune (3.20.00)

slide8

“There’s going to be a fundamental change in the global economy unlike anything we have hadsince the cavemen began bartering.”Arnold Baker, Chief Economist, Sandia National Laboratories

slide9

“The period 2000-2002 will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.”David Schneider & Grady Means, MetaCapitalism

slide10

“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

slide13
The Kotler Doctrine:1965-1980: R.A.F.(Ready.Aim.Fire.)1980-1995: R.F.A.(Ready.Fire!Aim.)1995-????: F.F.F.(Fire!Fire!Fire!)
strategy meetings held once or twice a year to strategy meetings needed several times a week
“Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week”

Source: New York Times on Meg Whitman/eBay

slide15

John Roth’s “Rules” [Nortel]1. Our strategies must be tied toleading-edge customers on the attack.2. Time cannot be sacrificedfor better quality, lower cost, or even better decisions.3. It doesn’t matter whether you develop or acquire leading technology.Our job is to provide the technology and products our customers need.4. Success is achieved byleading change, not waiting for it.5. We are paranoid about our leadership– willing to cannibalize our own products to maintain our edge.Source: Abridged from The Wall Street Journal (07.25.00)

slide16
“It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)
slide22
“It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control
slide23
Forget > Learn“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”Dee Hock
slide24

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

slide25
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
slide26

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco

slide27

Pentium III 800MHz: $42,893.00/#Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19Source: Fortune (3.20.00)

paradox redux atlanta 113 600 1 metro area layoffs major bellsouth lockheed coca cola
Paradox ReduxAtlanta: +113,600 = #1 metro areaLayoffs [major]: BellSouth, Lockheed, Coca-Cola
slide31

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

slide32
“The Word(s)” on Vitality: Gary Hamel“Sell By” [jettison old crap]Spin Out [support entrepreneurs]Spin In [buy young firms]
slide33

“The Futility of Size …“[Regarding this issue] the new process of virtualization fully asserts itself. 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

slide35

Headline: “Bank of America to Cut … 10,000 Jobs”“Middle-level and senior managersare expected to be the principal targets of the job cutbacks.”Source: The New York Times (07.29.2000)

slide36
Qwest Announces 11,000 Layoffs“The cuts will beconcentrated among management employees.”Source: AOL 09.07.2000
slide39

The Pincer 5“Destructive” entrepreneurs/ Global Competition“White Collar Robots”THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]Global Outsourcing[E.g.: India, Mexico]Speed!!

slide43
Cisco, Dell =Brand-owning companies who sell Customer SatisfactionSource: David Schneider & Grady Means, MetaCapitalism
slide45

RR on “Assetless” [J.B.] Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

slide48

[Pervasive “Risk Markets”“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which neighborhoods you go. The premium you pay reflects your actual driving risk.”Stan Davis & Christopher Meyer, futureWEALTH]

answer psf professional service firm department head to managing partner hr is etc inc
Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.
reward excellent failures punish mediocre successes phil daniels sydney exec
“Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec
slide64

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)

measures
Measures
  • WOW!
  • Beauty!
  • Raving Fans!
  • Impact!
slide66
“Every project we take on starts with a question: How can we do what’s never been done before?”Stuart Hornery, CEO, Lend Lease
slide67

T.T.D.sThe next slide is the first of many “T.T.D.” activities. I.e.: Things To Do, shorthand forms of training exercises I use. Also: Many of these T.T.D. slides, as well as most of the “Stuff That Matters” section, have accompanying Notes. (Use Normal View to access.)Tom Peters

t t d now
T.T.D.: Now!
  • List all projects
  • Carefully describe a “WOW Outcome” for you and the Client
  • Score (!)all projects on WOW, Beauty, Impact, Raving Fan-hood
  • Pick one project with a high combined score
  • Draft a one-page New Description that emphasizes WOW, Beauty, etc.
  • Circulate and edit … for three days
  • Reduce to 5 bullet points
2010 demographics by 2010 full time workers will be in the minority source mit study 28august2000
2010 “Demographics”:By 2010, full-time workers will be in the minoritySource: MIT study (28August2000)
slide71

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

slide72

Minimum New Work SurvivalSkillsKit2000MasteryRolodex ObsessionFinishing SkillsEntrepreneurial InstinctCEO/Leader/BusinesspersonMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal

slide73

Minimum New Work SurvivalSkillsKit2000Sense of Humor= N0.1MasteryRolodex ObsessionFinishing SkillsEntrepreneurial InstinctCEO/Leader/BusinesspersonMistress of ImprovIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal

slide77

“You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’ you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they appreciate?How much will my portfolio of career options grow?’ ”Stan Davis & Christopher Meyer, futureWEALTH

slide78

T.T.D./R.I.P.Use by yourself.Use with your mates.Use [quantitatively?] as a measure of departmental/ P.S.F. renewal.Use in formal eval process.

slide80

“The average knowledge worker will outlive the average employing organization. This is the first time in history that’s happened. … So the center of gravity of higher education is shifting from the education of the young to the continuing education of adults.”Peter Drucker, Business 2.0 (08.22.00)

slide81

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

slide82

“Our education system is a second-rate, factory-style organization, pumping out obsolete information in obsolete ways. [Schools] are simply not connected to the future of the kids they’re responsible for.”Alvin Toffler, Business 2.0 (09.00)

slide83

“Elementary and high school teachers should be rewarded as patient creators of high-value capital in the United States and elsewhere.”Richard Rosecrance, The Rise of the Virtual State

slide84
America[ns] The …Beautiful Re-inventorsBen F.Ralph W.E.Dale C.N.V.P. Werner E./est“Tony R.”/“Coals Dude”Stephen
slide88
Some people enjoy the corporate life.Then again, some people enjoy nipple clamps.Source: Ad tag line, FreeAgent.com
slide93

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

slide94

“The market’s being divided up right now. We’re in a tough competition [with the U.S. and the U.K.] for the best brains.”Gerhard Schroeder, on Germany’s new tech immigration policy[Frankfurter Allgemeine/06.02.00]

slide95

“Seller’s Market”: Tomorrow’s Headline*“Molecular biologists are up 3 points, economists down 1/4, in moderate trading”*futureWEALTH, Stan Davis and Christopher Meyer

obsession greatness performance pay youth diversity women weird opportunity leading genius
Obsession! Greatness! Performance!Pay!Youth!Diversity!Women!Weird!Opportunity!Leading Genius!
slide99

From “1, 2 or 3” [JW] to …“Best talent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent (05.17.00)

slide100

GE Is a “Talent Machine”“In most companies the talent review process is a farce. At GE, Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The talent review process is a contact sport. It has the intensity and the importance of the budget process at most companies.”Ed Michaels, War for Talent (05.17.00)

slide102

Home Depot:7 new growth initiatives ($20B to $100B in 5-7 years)Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH INITIATIVEE.g.: COO of IKEA to head international expansionEd Michaels, War for Talent (05.17.00)

slide104

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia Pacificchanged 20 of his 40 box plant managers to put more talented, higher paid managers in charge.He increased profitability from $25 million to $80 million in 2 years.”Ed Michaels, War for Talent (05.17.00)

slide106

“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.”Ed Michaels, War for Talent (05.17.00)

slide108

“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s the relentless rise of the quasi-adolescents who wield them.”Michael Schrage

slide109

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities.Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”Ed Michaels, War for Talent (05.17.00)

slide112

“Where do good new ideas come from?That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.”Nicholas Negroponte

slide113

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

slide116
The New Economy …Shout goodbye to “command and control”!Shout goodbye to hierarchy!Shout goodbye to “knowing one’s place”!
slide117

Women’s Stuff =New Economy MatchImprov skillsRelationship-centricLess “rank consciousness”Self determinedTrust sensitive IntuitiveNatural “empowerment freaks” [less threatened by strong people]Intrinsic [motivation] > Extrinsic

slide118

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

slide120

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

slide123

“Our business needs a massive transfusion of talent. And talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.”David Ogilvy

slide124

“He grew his hair long, played guitar in a rock band, chased girls, got into trouble. At age 17 he was flogged by his house master, who described him as ‘the most difficult boy I’ve ever had to deal with.’ ”

axiom never hire anyone without an aberration in their background find the one ton cookie man
Axiom:Never hire anyone without an aberration in their background.(Find the One Ton Cookie Man!)
slide130

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

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

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

slide131
“The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in recruits.”Burke Stinson, AT&T
slide136

44 Players = 44 Projects = 44 different success measures = 44 different styles (of you) One [if lucky] “1 in 10 years”[Scout: Great career = 1 sleeper find]

slide137

Exec: Can we really use individualized evaluations for everyone?TP: We do routinely for “Top 25,” so why not? Few supervisors have more than 10 folks directly reporting to them. True, there’d have to be some bounds. I guess. But why not a $60,000 housekeeper who sets the character of a full floor of a $150,000,000 hotel property?

slide138

Insights from 80,000 managers:“People don’t change much.“Don’t waste time trying to put in what was left out.“Try to draw out what was left in.“That is hard enough.”Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

slide139

Talent >Experience, Skills, WillpowerSource: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

slide140

Employee retention and satisfaction: Overwhelmingly, based on their immediatemanager!Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

slide148

And for the 6-Person Group??Send one “Cool Dude/Dudette” out to Find Something Cool, work with a Cool Customer, etc. [The “Micro-Skunkworks Strategy”]

slide152

Is It …“The Oh-Shit-I-Wish-It-Were-Over Memorial Day picnic”or “The First Annual Seriously Kewl Celebration of Our Incredible Staff”

slide153

Is It …Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?Or …A stealth opportunity to address the War for Talent via … a thoroughgoing review of how safety and environmental issues contribute to making this a Great Place to Work?

slide154

Is It …Fix these bloody customer problems that have cropped up with the new 2783B?Or …A chance to work with a hotshot, young division GM on …using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the heart of the Product Design Process?

slide155

Reframers’ Rules:Rule 1:Never accept an assignment as given! (Please.)Rule 2:You’re never so powerful as when you are “powerless”!Rule 3:Every “small” project contains the entire enterprise DNA!

slide157

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

slide159
“Success is the ability to go from failure to failure without losing your enthusiasm.”Winston Churchill(as quoted by John Peterman)
slide163
Epitaph from Hell … Joe T. Jones 1942 - 2000HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
characteristics of the also rans
Characteristics of the “Also Rans”

“minimize risk”

“respect the chain of command”

“support the boss”

“make budget”

Source: Fortune on “most admired

global corporations” (10/26/98)

consider are any of these four attributes characteristic of those who made the history books
Consider: Are any of these four attributes characteristic of those who “made the history books”?
slide166
The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo
slide167

Reprise: Brand InsideThe White Collar Revolution & The Web[Destruction Rules!]PSF as Building Block[Work Worth Paying For]Work Worth Paying For = WOW Projects!Brand You[Everybody!]The Great War for Talent! Boss-free Implementation of STM! [F2F]

n w o was is
Pine-paneled Office

Address: 1 Big Man Plaza

Secretary

Suit

Formal

Rank conscious

Pretense (“Failures are

for fools.”)

I love “Yes men”

Self-contained

Seat 9B, UA233

Address: Rick@Corp.com

Typing: 60 WPM

Casual M-F

Approachable

We are a HOT Team

Screwing up is as normal as breathing

I love Misfits!

I love partners

N.W.O.: Was-Is
slide170

Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

slide171

Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

slide173

Quality Not Enough!“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.”J.D. Power

slide174

Quality Not Enough!“While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,” The New York Times

slide175
“We make over three new product announcements a day. Can you remember them? Our customers can’t!”Carly Fiorina
slide176

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similar quality.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business

when we did it right it was still pretty ordinary barry gibbons on nightmare no 1
“When we did it ‘right’ it was still pretty ordinary.”Barry Gibbons on “Nightmare No. 1”
slide179

Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

slide181

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

slide182

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

slide183

“Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.”John Roth, CEO, Nortel

slide184

Lucent Stumbles!Cause(s): (1) Listening to BIGGEST, SLUGGISH customers. (2) Failing to exploit the Web internally or externallySource: Business Week (08.07.00)

message biggest is not always often most beautiful f2f rules how s your freaks portfolio
Message …Biggest is not always [often?] most beautiful!F2F Rules: How’s your “freaks” portfolio?
slide186

Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

slide192

Tomorrow Today: Cisco!90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships directGross margin:65%; Net margin: 28%Savings in service and support from customerself-management:$550M

slide193

Oracle: Service Call Center$300.00 per transaction to $1.50Savings: $550,000,000Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B additional this year]

slide194

And “Old Economy” IBM$5B (up 67%) of $21B (Q2/2000)42M transactions online; savings of $900M1/3 employee training online (save $150M)Source: The Industry Standard (09.00)

slide195

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the Web per se.Schwab: $25B per week in asset transactions [80% of trades] [Transition to e.Schwab: Rev. fell, then quickly doubled]

slide198

Tomorrow Today: Cisco!90% of $20B; save $550MC.Sat e >> C.Sat HCustomer Engineer Chat Rooms/CollaborativeDesign ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

slide199

Cherry PickingVertical MarketsPlasticsnet.com: $370B; sellers pay $5K to $8K for “storefront”; 5% to 10% cut Hook: community services (database, catalogs, forums, industry job bank, etc.)

b2c success genuine brand strength build community source geoffrey moore
B2C Success“Genuine brand strength”“Build community”Source: Geoffrey Moore
slide203

Welcome toD.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves.” Ray Lane, Oracle

anne busquet american express not age of the internet is age of customer control
Anne Busquet/ American ExpressNot: “Age of the Internet”Is: “Age of Customer Control”
slide206
I’net Freedom ManifestoI AM IN CHARGE HERE! I CAN DO WHATEVER I NEED OR WANT TO DO WHENEVER I WANT TO DO IT!
slide209

“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 Nordstrom and Jonas Ridderstrale, Funky Business

slide210

“In the network economy, the Website becomes the company’s primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post-sales support all rolled into one.”Jakob Nielsen,Designing Web Usability

slide211

“Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy.”Jakob Nielsen, Nielsen Norman Group

slide213
Case in Point …L.L.Bean’s incredibly awful, amazingly pathetic, hopelessly misleading, purely putrid “Web site” (TP/08.01.00)
slide216

“One cannot be tentative about this. Excuses like ‘channel conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24 months ago.”Jack Welch [07.00/Forbes.com]

slide218

“It’s better to be first with less than last with more. Success on the Web isn’t just about time to market, it’s also about‘time to learning.’ ”Jeff Levy, eHatchery

slide220

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

slide221

The eProcess EdgeEmbed processes in software (My.Yahoo, MySchwab)Outsource processes electronically (Gateway and eCredit)In-source new capabilities electronically (Fidelity’s services from outside)Handle exceptions exceptionally (Schwab)Source: The eProcess Edge, Peter Keen & Mark McDonald

slide222

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

slide223

“There is no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.”Lewis Carroll

slide226

“It” is real! It is “Life and Death”!Dream BIG!Start Now! Study Hard! Play Hard! Play Fast! Go on Offence!Hire great folks! (They ain’t cheap. They are young!)Don’t cut corners on infrastructure!Rem: “Age of the Never Satisfied Customer”!We ain’t seen nothin’ yet!

slide228

Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

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“Net Nips Real Estate Sales Fees”Headline,p.1B, USAToday 07.05.00**Homebytes.com, eHomes.com, YourHomeDirect.com, etc.
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Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
we want to be the air traffic controllers of electrons bob nardelli ge power systems
“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems
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“Systems Integrators” Unite[And Conquer]Cisco’s winning strategy [USAToday 07.11]: “Become the ‘Go-to’ Systems Provider”
09 11 2000 hp bids 18 000 000 000 for pricewaterhousecoopers it consulting bus
09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersIT consulting bus!
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RR on “Assetless” [J.B.] Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

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

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GE’s 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 = Client’s World.Source: Steve Kerr, VP, GE

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Hospitality World Translation:You are responsible, in my mind, for …THETURNKEYTRAVELEXPERIENCE… and I don’t discriminate among who provides what.

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Hotel in Las VegasMY STAY HAS BEEN LOUSY!YOUR PROBLEM: A GROTESQUE START. To wit: 1 hour, 7 minutes in an airport cab line @ 10:30 P.M. (1:30 A.M. EDT)

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Defense-Offense: Systems Integration/HVADelphi, DanaUnited Technologies, Corning, GE, Sun, Carpet One, Bud …[Anybody in their right mind!]

e g utc otis carrier boxes to integrated building systems p w boxes to major aircraft subsystems
E.g. …UTC/Otis + Carrier: boxes to “integrated building systems” P&W: boxes to major aircraft subsystems
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Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

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

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Design as Soul“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 fundamental soul of a man-made creation.”Steve Jobs

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

unconventional design messages not about lumpy objects no t about 79 000 objects
Unconventional [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects
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Lady Sensor, Mach3, and …$70M on developing the OralB CrossAction toothbrush23 patents, including 6 for the packagingSource: www.ecompany.com [06.00]

message services are not intangible you give off hundreds of design cues daily you are a designer
Message:“Services” are Not Intangible!You “give off” hundreds of design cues … daily!YOU ARE A DESIGNER!
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T.T.D./“Beauty Contest!”1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim form.2. Rate it on a 1 to 10 scale (1 = Awful; 10 = Scintillating) on three dimensions:Beauty, Grace, Clarity.3. Repeat … every 15 days.

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Design =“There are three basic principles behind any well-designed product: truth, humanity, and simplicity.”Sohrab Vossoughi, Ziba Design

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“My favorite word is grace – whether it’s amazing grace, saving grace, grace under fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or the environment.”Celeste Cooper, designer

t t d design awareness step no 1 notebook start recording the awesome and the awful
T.T.D./Design “Awareness”!STEP No. 1: NOTEBOOK![Start recording the awesome and the awful.]
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“Sometimes I have episodes of wild fury in rental cars. It’s not road rage. It’s more like design rage.”Susan Casey, www.ecompany.com
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Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

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

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“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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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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“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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PlotWilliams Sonoma = 7 [was 10]Crate & Barrel = 8Sharper Image = 9+Smith & Hawken = 8+Garnet Hill = 9L.L. Bean = 5 [was 9+]Land’s End = 7+Colonial Williamsburg = ?

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“This is the end of the pure product era. For instance, car makers are beginning to understand that the car is a platform for delivering services that drive the customer experience.”Carly Fiorina, HP @ Comdex ’99

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“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct. Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a rolling wireless portal on wheels, connecting you to your kitchen, your bank, your kids, your office.”Business 2.0, “Four Wheel Drive,” 08.22.00

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Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

home furnishings 94 vacations 92 houses 91 bank account 89 health care 75 etc
?????????Home Furnishings … 94%Vacations … 92%Houses … 91%Bank Account … 89%Health Care … 75%Etc.
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48% working wives > 50%80% checks61% bills53% stock (mutual fund boom)43% > $500K95% financial decisions/ 29% single handed
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Women …50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education.Source: Business Week; Jupiter Communications

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

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

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[“Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. … For a man, ignoring the price tag is almost a sign of virility.”Paco Underhill, Why We Buy*(*Buy this book!)]

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“In a Web First, Women Are in the Majority”*Q12000: 50.4% to 49.6%;12-17: 126%; >55: 110%“Women and men use the Web differently. Women are more pressed for time. For them, the Internet is really a productivity tool. … Men tend to spend more time on line just playing around.”*Headline, USAToday, 08.09, p.1A; Media Metrics/Jupiter Communications

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Women and HealthcareWomen are … more dissatisfied, frustrated by the way they are treatedand spoken down toby physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $$$$ [and constitute 2/3 of health care employees].Source: Patricia Braus, Marketing Healthcare to Women

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Women and Financial AdvisorsWomen want … a plan, to be listened to,to be taken seriously, to read about it, to think about it.Women do not want … an in-your-face sales pitchSource: Kathleen Boyle, Wheat Boyle Butcher Singer

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

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Marketing to Women: Help Them Save Time!80% … work86% … cook58% … run errands with kids38% … take child to school21% … go to the gym21% … take outside classes

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

eveolution truth no 1 connecting your female consumers to each other connects them to your brand
EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand
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“The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”EVEolution

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

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

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Q: Why do guys like pagers?A1: Sense of importance [Pager Dude]A2: Cubicle Slaves’ replacement for “real guys” tool belts
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Q: Why do women like pagers?A: Get the news A.S.A.P. if her child is in the Nurse’s OfficeQ: Why do women hate pagers?A: They find nothing romantic about wearing a Stetson wrench or Stanley hammer attached to their waist! [Note the pager’s clip-on device … guys]

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

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“I didn’t know [company] were giving company cars to secretaries.”Source: UK financial services CEO, 12/99
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27 March 2000: email to TP from Shelley Rae Norbeck “I make 1/3rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

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“If we are single, they say we couldn’t catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. If we are widowed, they say we killed him.”Kathleen Brown, on the joys of female political candidacy

this just might be the biggest thing in this seminar please think about it
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS SEMINAR.[PLEASE: THINK ABOUT IT!]
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Not a Morality Play!“It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We are marketing to women entrepreneurs because it is a huge opportunity.”Cherie Piebes

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74/55“At each stage of their lives, the needs and desires of the baby boomers have become the dominant concerns of American business and popular culture. If you can anticipate the movement of the baby-boom generation’s life-span migration, you can see the future.”Ken Dychtwald, Age Wave

aging elderly 2x growth rate i m in charge good source ken dychtwald age wave
Aging/“Elderly”2X growth rate$$$$$$$$$$$$“I’m in charge!”Good source: Ken Dychtwald,Age Wave
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Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

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

you are the storyteller of your own life and you can create your own legend or not isabel allende
“You are the storyteller of your own life, and you can create your own legend or not.”Isabel Allende
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“The time seems appropriate to rethink the notions of self and identity in this rapidly changing age …”Tara Lemmey, Project LENS, past president Electronic Frontier Foundation

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“A good plant engineer in a paper mill may create $100K to $300K in value per year. An outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers”Ed Michaels, War for Talent (05.17.00)

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“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similar quality.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business

anne busquet american express not age of the internet is age of customer control1
Anne Busquet/ American ExpressNot: “Age of the Internet”Is: “Age of Customer Control”
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“Imagine a world where a citizen could search the globe to assemble “my government,” the ultimate in customized,customer-centric services. Health care from the Netherlands, business incorporation in Malaysia …” Don Tapscott

aging elderly 2x growth rate i m in charge good source ken dychtwald age wave1
Aging/“Elderly”2X growth rate$$$$$$$$$$$$“I’m in charge!”Good source: Ken Dychtwald,Age Wave
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1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”YES, NURSE. ME GOOD PUPPY DOG.1995: “HMO will take care of you.” BULLSHIT.2005: “Iwilltakecareofme. I’d like your expert help.”

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“Online Medical Records Seen Empowering Patients”Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K patients @ CareGroup
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Grameen Bank/Bangladesh“It’s not people who aren’t credit-worthy. It’s banks that aren’t people worthy.”$2.3B to 2.3M [typical 1st loan: $15.]98% recovery rate [94% to women!]1/3rd out of poverty; 1/3rd up to non-poverty thresholdMuhammad Yunus, Banker to the Poor

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“The Grameen loan is not simply cash. It becomes a kind of ticket to self-discovery and self-exploration.”Muhammad Yunus
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Self-Determination ReduxMicropower (fuel cells) …Microgrids …“Virtual Utilities”Source: The Economist (08.2000)
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Sooooo …Is your strategy centered around customer-client empowerment & self-determination? Hint: This means letting go of traditional sources of power!

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Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

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Brand It!Now, More Than Ever!“The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.”Gillian Law and Nick Grant, Management [New Zealand]

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Scott Bedbury/ Nike, Starbucks“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product.“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep - a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.”

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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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“In the funky village, real competition no longer revolves around marketshare. We are competing for attention – mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale, Funky Business

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

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“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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T.T.D.: “How can I know what I think till I see what I say”*Exercise : Write copy for a bookmark! (Etc.)*Graham Wallas, The Art of Thought

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

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

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Context: “No” to “inevitable commoditization”S1: Lead the Customer!S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!S4: Design Matters! S5: It’s the Experience!S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!S8: Brand Power & Summary!

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Re-invention via ecommerce: Why ToughTotal commitment to total enterprise [and supply chain] reinvention!
brand power why tough way of life forever passion rules touches everything it am me personal
Brand Power: Why ToughWay of LifeForever!Passion Rules!Touches Everything!It Am Me [Personal!]
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Brand Leadership!“A key – perhaps the key – to leadership isthe effective communication of a story.”Howard GardnerLeading Minds: An Anatomy of Leadership

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“Leadership is a performance.You have to be conscious of your behavior, because everybody else is.” Carly Fiorina
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“Create a Cause, not a ‘business.’ ”Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1: Charles Schwab)