Rollercoaster Days: Learning to … Rock & Roll! PMMI/West Palm Beach 04.03.2001 “There will be more confusion in the business world in the next decade than in.
Download ReportTranscript Rollercoaster Days: Learning to … Rock & Roll! PMMI/West Palm Beach 04.03.2001 “There will be more confusion in the business world in the next decade than in.
Rollercoaster Days: Learning to … Rock & Roll! PMMI/West Palm Beach 04.03.2001 “There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case “In 25 years, you’ll probably be able to get the sum total of all human knowledge on a personal device.” Greg Blonder, VC [was Chief Technical Adviser for Corporate Strategy @ AT&T] [Barron’s 11.13.2000] <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift 1800s: > prior 900 years 1900s: 1st 20 years > 1800s 2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”) Ray Kurzweil, talk april2001 “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) “We are in a brawl with no rules.” Paul Allaire 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!) John Roth’s “Rules” [Nortel] 1. Our strategies must be tied to leading-edge customers on the attack. 2. Time cannot be sacrificed for 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 by leading 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) “It used to be that the big ate the small. Now the fast eat the slow.” Geoff Yang, IVP/ (Institutional Venture Partners) “We don’t sell insurance anymore. We sell Read It Closely: speed.” Peter Lewis, Progressive JY: Who do you fear most, big companies or start-ups? JC: I have a list with a dozen little companies I’m tracking closely. Guys who can start with a fresh sheet of paper have an enormous advantage technologically. We have to carefully integrate new capabilities into our existing product line, they don’t.” Source: Jeffrey Young, Cisco Unauthorized Structure Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership Forces @ Work I The Destruction Imperative! Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters “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 The [New] Ge Way DYB.com The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M Brand Inside Brand Org: Lean, Linked, Electronic & Malleable White Collar Revolution! 108 X 5 vs. 8 X 1* * 540 vs. 8 (-98.5%) 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.” Cisco, Dell = Brand-owning companies who sell Customer Satisfaction Source: David Schneider & Grady Means, MetaCapitalism [e.g.: Cisco owns 2 of 38 assembly plants] Brand Inside Brand Work: The Professional Service Firm Model, The WOW Project, and The New Worker So what will be the Basic Building Block of the New Org? Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc. “P.S.F.”: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot “Talent” (see below) “Adventurous” “culture” Proprietary Point of View (Methodology) W.W.P.F. (100%)/Outside Clients (25%) When: Now! 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business! (31K bods) [“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett Packard] The Raw Material … The WOW Project! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “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 Minimum New Work SurvivalSkillsKit2000 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Finishing Skills Entrepreneurial Instinct CEO/Leader/Businessperson Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal “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) Invent. Reinvent. Repeat. Source: HP banner ad Brand Inside Brand Talent: The Great War for Talent “When land was the productive asset, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH “We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, COO, Enron From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent (05.17.00) “We believe companies can increase their market cap 50 percent in 3 years. Steve changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased Macadam at Georgia Pacific profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent (05.17.00) Message: Some people are better than other people. Some people are a helluva lot better than other people. “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) So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager, $3-4M per year. Pay: $135,000 plus $90,000. Net: $2-3M for $50K. Source: Ed Michaels et al., The War for Talent, re Georgia Pacific What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more. “Why focus on these late teens and twentysomethings? Because they are the first young who are both in a position to change the world , and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.” The Economist [12/2000] “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) “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 The Cracked Ones Let in the Light “Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.” David Ogilvy “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week, 11.20.00 Women and neweconomy management … The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”! Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic “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 “Boys are trained in a way that will make them irrelevant.” Phil Slater Okay, you think I’ve gone tooooo far. DO ANY OF YOU SUFFER FROM TOO MUCH TALENT? How about this: MantraM3 Talent = Brand What’s your company’s … Employee Value Proposition, per Ed Michaels et al., The War for Talent EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward [EVP = “The company’s fingerprint” = B.P.] Source: Ed Michaels et al., The War for Talent FindDevelop-Mentor Goal of the Year No. 1*: ONE Extraordinary Person. *CEO, large financial advisory firm, April 2001 Brand Inside Reprise: THINK WEIRD: The High Standard Deviation Enterprise Saviors-in-Waiting Disgruntled Customers Fringe Competitors Rogue Employees Edge Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees Button-down Org • • • • • • • H.S.D.E. Acquire for market share Suck up to biggest customers Pursue “strategic vendors” Bigger is better Accept assignments as given Hire 4.0s from “top schools” Promote when they’ve “paid their dues” • Appoint a “prestigious” board • • • • • • • • Hang out with my pals • R.A.F. • Be “professional” at all times/Honor thine elders • • • • . Acquire for innovation Partner with cool customers Seek out pioneering vendors Break it up … to refresh Reframe all tasks to innovate Hire “intriguing,” wherever Promote tomorrow if the work product is weird and WOW Appoint an interesting, headstrong board Take a freak to lunch today F.F.F. Stay loose, stay cool/The hell with thine elders “But don’t we need some grout between the tiles?” N.W.O.: • • • • • • • Was Pine-paneled Office • Address: 1 Big Man Plaza • Secretary • Suit • Formal • Rank conscious • Pretense (“Failures are • for fools.”) • • I love “Yes men” • • Self-contained Is Is Seat 9B, UA233 Address: [email protected] 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 Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership Forces @ Work II The Commodity Trap 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 “We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business “Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, A Unique Moment Brand Outside Strategy 1: Lead the Customer! “If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College “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 Brand Outside Strategy 2: Use E-Commerce to Re-invent Everything! Tomorrow Today: Cisco! 90% of $20B (=$50M/day) 75% mfg. outsourced; 50% of orders routed to supplier who ships direct Gross margin: 65%; Net margin: 28% Annual savings in service and support from customer self-management: $550M Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early 1999: 30 times a day. Late 2000: 30 times per … minute. Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s: 2 weeks, 2 per week. Late 2000: 5 such deals per day Source: ecompany.com (1-2/2001) “This is the first meter of a 10-kilometer race. Eventually, all markets will come to resemble today’s foreign exchange market.” Hamid Biglari, Head of Corporate Strategy, Citigroup, in “GIGATRENDS,” Wired 04.01 Tomorrow Today: Cisco! 90% of $20B; save $550M C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration) Welcome to D.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 “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] “We’ve put the word out to all of our suppliers: by the end of the year [2000] we’ll only do purchasing over the Internet.” John Paterson, C.P.O., IBM [$50B from 18,000 suppliers] WebWorld = Everything Web as a way to run your business’s innards Web as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry Web/B2B as ultimate wake-up call to “commodity producers” Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to World’s Best at Everything as next door neighbor “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.” Ray Lane, Kleiner Perkins “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 I’net … allows you to dream dreams you could never have imagined before! … Brand Outside Strategy 3: Design Matters! All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only thing that differentiates one product from another in the marketplace.” features. Norio Ohga “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 Design is the fundamental soul meaning of design. of a man-made creation.” Steve Jobs Design “is” … WHAT & WHY I LOVE. LOVE. I LOVE my ZYLISS Garlic Peeler! Design “is” … WHY I GET MAD. MAD. Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward! Design is never neutral. DESIGN is the principal difference between love and hate! Hypothesis: THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has become a professional obsession. I - SIMPLY – BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” … that damn few companies put – consistently – on the front burner. Design-Minded Company: Credo Design matters! Everywhere! The Brand Promise rules! Everywhere! All can answer: WHO ARE WE? HOW ARE WE DISTINCT? Words such as beauty & grace & emotion & connection & Wow & adventure are okay ’twixt 9 and 5. Non-Wow doesn’t cut it. Anywhere! We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis on the arts, is part of this. Diversity-R-Us! Design-Minded Company: Operating Philosophy All work is the product of Hot Teams of peers. Hierarchy is minimal, and usually a distraction. We understand that “disrespect” is the ultimate in respect in crazy times. The Work Matters! Wow … or bust! All work reflects design-mindfulness & the brand promise. Promotion comes immediately if the work is Wow. NO BULLSHIT. We keep our word to our teammates and other partners. Integrity = No.1 outcropping of design-mindfulness. We are a business. Results matter! Design Rules! [Literally] Palm Beach County’s U.C.B.* [*Utterly Confusing Ballot] Brand Outside Strategy 4: Women Rule! ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80% ???? Riding Lawnmowers 48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed $4.8T > Japan 9M/27.5M/$3.6T > Germany Yeow! 1970 … 1% 2002 … 50% Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold “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.” Faith Popcorn EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand “The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution “Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information,establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” Judy Rosener, America’s Competitive Secret What If … “What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?” “What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills?” EVEolution STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that women’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters Brand Outside Strategy 5: Welcome to “Old World”! “ ‘Age Power’ will rule st the 21 century. We are woefully unprepared.” Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Subject: Marketers & Stupidity It’s 18-44, stupid!* *18-24: XFL Subject: Marketers & Stupidity “18-44 is stupid, stupid!” Or is it: 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!” 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes 40M credit card users 41% new cars/48% luxury/5M auto loans $610B healthcare spending 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access … Respect! [Trends #1, #2 – or #2 & #1,#3: Women, Aging, Greening] Protect the environment: 52% Develop more energy: 36% Equal: 6% No opinion or Other: 6%: Source: Gallup 3-5 March 2001 Brand Outside Strategy 6: BRAND POWER! “WHO ARE YOU [these days] ?” TP to Client “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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others. that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies “Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.” Jesper Kunde, A Unique Moment “Brand Promise” Exercise: (1) Who Are WE? (1 page, then 25 words.) (2) List three ways in which we are UNIQUE … to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada: Try ’em on a skeptical Client! “WHO ARE WE?” “WHO AM I ?” [“Me and the Brand Promise, a Passionate Saga” – We hope!] A&P Fun in the Sun Store Edgartown MA: DO THE EMPLOYEES BUY THIS ACT ? “EXACTLY HOW AM I/ ARE WE DIFFERENT?” “ WHY DOES IT MATTER TO THE CLIENT?” “EXACTLY HOW DO I CONVEY THAT DIFFERENCE TO THE CLIENT ” Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency & freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments, all hands affair. [Tell the TRUTH P-l-e-a-s-e ] Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership Brand Leadership Passion Rules! “Leadership is a performance. You have to be conscious of your behavior, because everybody else is.” Carly Fiorina “You must be the change you wish to see in the world.” Gandhi “Leaders achieve their through the stories they relate. effectiveness chiefly In addition to communicating stories, leaders embody those stories.” Howard Gardner, Leading Minds: An Anatomy of Leadership “Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1: Charles Schwab) Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.” Ben Zander: Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.] “Let’s make a dent in the universe.” Steve Jobs