Transcript Re-imagine’s Requisites: The Leadership Tom Peters Banco Leon/ Santo Domingo/31March2004 Slides at … tompeters.com “Uncertainty is the only thing to be sure of.” –Anthony Muh, head of.

Re-imagine’s Requisites:
The Leadership
11
Tom Peters
Banco Leon/
Santo Domingo/31March2004
Slides at …
tompeters.com
“Uncertainty is the only
thing to be sure of.” –Anthony Muh,
head of investment in Asia, Citigroup Asset Management
“If you don’t like change,
you’re going to like
irrelevance even less.” —General Eric
Shinseki, Chief of Staff,
U. S. Army
Context: The Change Tsunami
Jobs
Technology
Globalization
Security
“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
“14 MILLION
service jobs are in
danger of being
shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
study
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/08.18.03
“There is no job
that is America’s
God-given right
anymore.”
—Carly Fiorina/ HP/
01.08.2004
“WHAT ARE PEOPLE
GOING TO DO WITH
THEMSELVES?” —Headline
/Fortune/ 11.03 (“We should finally admit that we do
not and cannot know, and regard that fact with
serenity rather than anxiety.”)
“In a global economy, the
government cannot give
anybody a guaranteed success
story, but you can give people
the tools to make the most of
their own lives.” —WJC, from Philip Bobbitt,
The Shield of Achilles: War, Peace, and the Course of History
<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
Steel: 75,000,000 tons in
’82 to 102,000,000 tons in
’02. 289, 000 steelworkers
in ’82 to 74,000
steelworkers in ’02.
Source: Fortune/11.24.03
“The world has arrived at a rare
strategic inflection point where
nearly half its population—living in
China, India and Russia—have been
integrated into the global market
economy, many of them highly
educated workers, who can do
just about any job in the world.
We’re talking about three billion
people.” —Craig Barrett/Intel/01.08.2004
1990-2003: Exports 8X
($380B); 6% global exports
2003 vs. 3.9% 2000; 16% of
Total Global Growth in 2002.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
1998-2003: 45,000,000 layoffs in
state sector; offset by $450B in
foreign investment; foreign
companies account for 50+%
of exports vs. 31% in Mexico,
15% in Korea.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
In Store: International Equality, Intranational Inequality
“The new organization of society implied by the triumph
of individual autonomy and the true equalization of
opportunity based upon merit will lead to very great
rewards for merit and great individual autonomy. This
will leave individuals far more responsible for
themselves than they have been accustomed to being
during the industrial period. It will also reduce the
unearned advantage in living standards that has been
enjoyed by residents of advanced industrial societies
throughout the 20th century.”
James Davidson & William Rees-Mogg,The Sovereign Individual
“This is a dangerous world and
it is going to become more
dangerous.”
“We may not be interested in
chaos but chaos is interested
in us.”
Source: Robert Cooper, The Breaking of Nations:
Order and Chaos in the Twenty-first Century
It is the foremost task—
and responsibility—
of our generation to
re-imagine our
enterprises, private
and public —from the
Foreword, Re-imagine
The Leadership
11
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
In an age of value-added through
imagination, creativity and
intellectual capital … the leader’s
Job One is the recruitment,
development and retention of
awesome talent.
Brand =
Talent.
Age of Agriculture
Industrial Age
Age of Information Intensification
Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
“The leaders of Great
Groups love talent and know
where to find it. They revel in
the talent of others.”
Warren Bennis & Patricia Ward Biederman,
Organizing Genius
Model
25/8/53
Sports Franchise GM
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
“In most companies, the Talent Review
Process is a farce. At GE, Jack 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 at GE; it
has the intensity and the importance of the
budget process at most companies.” —Ed
Michaels
DD$21M
“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, BusinessWeek, 11.20.00
Women’s Strengths Match New Economy
Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style
[empowerment beats top-down decision making];
sustain fruitful collaborations; comfortable with
sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret: Women Managers
What’s your company’s …
EVP?
Employee Value Proposition, per Ed
Michaels et al., The War for Talent;
IBP/Internal Brand Promise per TP
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
Source: Ed Michaels et al., The War for Talent
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
Talent
Department
Quests!
Organizing Genius / Warren Bennis and Patricia
Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or her
absolute best.”
“The best thing a leader can do for a
Great Group is to allow its members to
discover their greatness.”
Distinct …or Exstinct
“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
“My ancestors were printers in
Amsterdam from 1510 or so until
1750, and
during that
entire time they didn’t
have to learn anything
new.”
Peter Drucker, Business 2.0 (08.22.00)
“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)
Edward Jones’ Training Machine*
146 hours/employee/year
New hires: 4X avg.
3.8% of payroll
* #1, “The 100 Best Companies To Work
For”/Fortune/01.2003
I AM A TALENT FANATIC. I STACK
UP WITH THE BEST FOOTBALL
COACHES. OUR TALENT IS ON
QUESTS TO RE-IMAGINE
TOMORROW. THE TALENT I
RECRUIT AND DEVELOP IS MY
PREMIER LEGACY. (Scale
of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The “metabolism” of enterprisecompetition-invention has
speeded up remarkably. It is the
leader’s mission to increase—and
manage—the Metabolic Rate of her
or his organization.
“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
<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
“We are in a
brawl with no
rules.”
Paul Allaire
“Strategy meetings held once
or twice a year” to “Strategy
meetings needed several
times a week.”
Source: New York Times on Meg Whitman/eBay
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!)
“If Microsoft is good at anything, it’s
avoiding the trap of worrying about
criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through
version after version, until they get
something good enough. Then they
leverage the power they’ve gained in
other markets to enforce their standard.”
Seth Godin, Zooming
“We have a
‘strategic’ plan.
It’s called doing
things.”
— Herb Kelleher
WE ARE ON A PERMANENT HIGH.
WE LIVE ON SPEED. WE TACK
AND JIBE ON A NANOSECOND’S
NOTICE. RECRIMINATION IS
MINIMAL. ACTION RULES. I AM
PROACTIVE AROUND THE CAUSE
(Scale of
1 to 10?)
OF URGENCY.
“How we feel about the evolving future tells us who we
are as individuals and as a civilization: Do we search
for stasis—a regulated, engineered world? Or do we
embrace dynamism—a world of constant creation,
discovery and competition? Do we value stability and
control or evolution and learning? Do we think that
progress requires a central blueprint, or do we see it
as a decentralized, evolutionary process?? Do we see
mistakes as permanent disasters, or the correctable
byproducts of experimentation? Do we crave
predictability or relish surprise? These two poles,
stasis and dynamism, increasingly define our political,
intellectual and cultural landscape.” —Virginia Postrel,
The Future and Its Enemies
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Internet and other associated
technologies are changing …
everything. The leader must take
direct charge of the full-bore
implementation of the new
technologies. The wise leader is
his own CIO.
square feet
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from the lab to
X-ray to records to physician order entry. Patients don’t have to
wait for anything. The information from the physician’s office is
in registration and vice versa. The referring physician is
immediately sent an email telling him his patient has shown up.
… It’s wireless in-house. We have 800 notebook computers that
are wireless. Physicians can walk around with a computer that’s
pre-programmed. If the physician wants, we’ll go out and wire
their house so they can sit on the couch and connect to the
network. They can review a chart from 100 miles away.” —David
Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002)
“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made
one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The
implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an
ineffective bombing campaign, and Washington was anguishing over whether
to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used
satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen
(much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures
to allow intelligence analysts and attack planners to work directly together.
Their favorite tool, incidentally, was instant messaging over a secure
network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/
OCT2002
“There’s 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 dreamed
before!
…
Case:
CRM
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“CRM has, almost
universally, failed
to live up to
expectations.”
Butler Group (UK)
FT: “The aim [of
CRM] is to make customers
feel as they did in the preelectronic age when service
was more personal.”
No! No! No!
CGE&Y (Paul Cole): “Pleasant
“Systemic
Opportunity.” “Better job
of what we do today” vs. “Rethink overall
enterprise strategy.”
Transaction” vs.
Here We Go Again: Except It’s Real This Time!
Bank online: 24.3M (10.2002); 2X Y2000.
Wells Fargo: 1/3rd; 3.3M; 50%
lower
attrition rate; 50% higher growth in
balances than off-line; more likely to
cross-purchase; “happier and stay
with the bank much longer.”
Source: The Wall Street Journal/10.21.2002
TECHNOLOGY CHANGES
EVERYTHING. I AM A TRUE
BELIEVER. NOW IS THE MOMENT
FOR INSANELY BOLD
INVESTMENT AND TOTAL
CORPORATE RE-IMAGINATION.
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The “corporate metabolism” cannot
be speeded up and the new
technologies cannot be fully exploited
unless all barriers to X-functional
communication (throughout the entire
supply and demand chain) are
destroyed. The leader must lead—get
directly involved in the minutiae of
this STRATEGIC task.
“The organizations we created have
become tyrants. They have taken
control, holding us fettered, creating
barriers that hinder rather than help
our businesses. The lines that we
drew on our neat organizational
diagrams have turned into walls
that no one can scale or penetrate
or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
“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
BARRIERS MUST GO. PERIOD. I
AM INTIMATELY INVOLVED WITH
THE GRUBBY DETAILS OF TOTAL
PROCESS RE-DESIGN. WE WILL
NOT PARTNER WITH THOSE THAT
(Scale of
1 t0 10?)
DON’T “GET IT.”
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The new competitive realities
demand that we turn our backs on
the ones who brung us. Every
leader needs a FORMAL
“forgetting strategy.”
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100
“survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak,
outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957
to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why
Companies That Are Built to Last Underperform the Market
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
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
“FORGET IT” IS MY MISSION AND
MANTRA. WE MUST SEVER
MANY/MOST OF OUR TIES TO THE
PAST … AND IMAGINE
COMPLETELY NEW WORLDS.
EVERYONE KNOWS THAT
“FORGETTING” IS MY PASSION.
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
A brand new value proposition is
emerging. We are moving toward
more and more ethereal
“products” and “services.” The
leader must oversee this
process—become the
Metaphysician-in-Chief.
“While everything may
it is also
increasingly
the same.”
be better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
“We make over three new
product announcements a
day. Can you remember
them? Our
customers
can’t!”
Carly Fiorina
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Systems
Integrator of
choice. Global Services:
Gerstner’s IBM:
$35B. Pledge/’99: Business
Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.”
ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles,
from 21 mfg. sites to 6,000 NA dealers)
Omnicom:
57%
(of
$6B) from marketing services
And the Winners Are …
Televisions –12%
Cable TV service +5%
Toys -10%
Child care +5%
Photo equipment -7%
Photographer’s fees +3%
Sports Equipment -2%
Admission to sporting event +3%
New car -2%
Car repair +3%
Dishes & flatware -1%
Eating out +2%
Gardening supplies -0.1%
Gardening services +2%
Source: WSJ/05.16.03
IBM/Q3/10.15.03/Rev: +5%
Services/Consulting: +11%
Software: +5%
Hardware: -5%
PCs: -2%
Technology/Chips: -33%
“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
Keep In Mind:
Customer
Satisfaction
versus
Customer
Success
“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
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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
WHAT CAN BROWN DO FOR YOU?
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients become
what they want to be.” —Gian Luigi
Longinotti-Buitoni
“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
The marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’
dreams.
Dreamketing: The art of telling stories and
entertaining.
Dreamketing: Promote the dream, not the
product.
Dreamketing: Build the brand around the
main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
(Revised) Experience Ladder
Dreams Come True
Awesome Experiences
Solutions/Success
Services
Goods
Raw Materials
“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. … The Dream Society is
emerging this very instant—the shape of the future is visible
today. Right now is the time for decisions—before the major
portion of consumer purchases are made for emotional,
nonmaterialistic reasons. 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
“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, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]
I FULLY COMPREHEND THAT THE
“BASIC VALUE PREMISE” IS
SHIFTING … DRAMATICALLY AND
RAPIDLY. I AM WHOLLY
COMMITTED TO BECOMING
“MASTER METAPHYSICIAN.”
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The two biggest (by far) “trends”
are ignored—or at least not treated
as Strategic Priority One—by
most. Women! Boomers &
Geezers! Why? (And … what does
the leader plan to do about it?)
Women & the
Marketspace.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%
D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
Health Care … 80%
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
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.”
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
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 don’t buy
They
join them.”
brands.
EVEolution
2.6
vs.
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
Boomers &
Geezers.
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
“Sixty Is the
New Thirty”
—Cover/AARP/11.03
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$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
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
I GET IT! WOMEN! BOOMERS &
GEEZERS! IT’S WHERE THE LOOT
IS! WE ARE “GOING STRATEGIC”
ON THIS! (Scale
to 10?)
of 1
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
We must think of the “rosters” of
talent, customers, suppliers, leader,
projects, initiatives—and the Board—
in terms of portfolios. I.e.: Is our
portfolio as strange as these strange
times demand? The leader is a “V.C.”
(venture capitalist) creating and
managing several strategically vital
portfolios.
“Good management was the
most powerful reason [leading
firms] failed to stay atop their
industries. Precisely because these firms
listened to their customers, invested aggressively in
technologies that would provide their customers more
and better products of the sort they wanted, and
because they carefully studied market trends and
systematically allocated investment capital to
innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: “Futuredefining customers may
account for only 2% to 3%
of your total, but they
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
COMPETITORS: “The
best swordsman
in the world doesn’t need to fear
the second best swordsman in the
world; no, the person for him to be afraid of is
some ignorant antagonist who has never had a
sword in his hand before; he doesn’t do the
thing he ought to do, and so the expert isn’t
prepared for him; he does the thing he ought not
to do and often it catches the expert out and
ends him on the spot.”
Mark Twain
Employees: “Are there
enough weird
people in the lab these
days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: “There
is an ominous
downside to strategic supplier
relationships. An SSR supplier is not
likely to function as any more than a mirror
to your organization. Fringe suppliers that
offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
Boards: “Extremely contentious
boards that regard dissent as an
obligation and that treat no
subject as undiscussable” —Jeffrey
Sonnenfeld, Yale School of Management
We become
who we hang
out with!
Big Idea/s
V.C.
Portfolio
Roster
I AM A “V.C.” I OBSESS ABOUT
MY VARIOUS “ROSTERS”—
EMPLOYEES, CUSTOMERS,
ETCETERA. I MEASURE MY
ROSTERS’ “WEIRDNESS
QUOTIENT.” (Scale
to 10?)
of 1
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
Screwing up is more important
than ever in strange times. The
screw-up rate is the best indicator
of sufficiently rapid adaptation.
The leader must “manage” the
screw-up process—literally.
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
“Perfection is
achieved only by
institutions on
the point of
collapse.”
— C. Northcote Parkinson
“The secret of fast
progress is
inefficiency, fast and
furious and numerous
failures.”
Kevin Kelly
RM: “A lot of companies in the
Valley fail.”
RN: “Maybe not enough fail.”
RM: “What do you mean by that?”
RN: “Whenever you fail, it means
you’re trying new things.”
Source: Fast Company
Silicon Valley Success
[Failure?] Secrets
“Pursuit of risk”: 4 of 20 in V.C.
portfolio go bust; 6 lose money;
6 do okay; 3 do well;
1 hits the jackpot
Source: The Economist
Excellence =
1 in 20
DG to TP: “Sam
is not afraid
to fail.”
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
Fail.
Forward.
Fast.
–High-tech Exec
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
WE DO NO “WITCH HUNTS”!
WE FULLY UNDERSTAND THAT
WE ARE AS GOOD AS OUR
“EXCELLENT FAILURES.” WE
CHERISH THE BOLD AND
BLOODIED ONES. (Scale
1 to 10?)
of
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
People “sign up” for causes worth
pursuing. Turning the enterprise
into a cause-worth-committing-to
is a primary task of the leader.
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“I never, ever thought of myself
I was
interested in creating
things I would be
proud of.” —Richard Branson
as a businessman.
CEO Assignment2002 (Bermuda):
“Please leap forward to 2007, 2012, or
2022, and write a business history of
What will have
been said about your
company during your
tenure?”
Bermuda.
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first
book?” “Close your eyes and
imagine me immediately doing
something about what you’ve
just said. What would it be?”
“Do you feel you have an
obligation to ‘Make the world a
better place’?”
Demo = Story
“A key – perhaps the key –
to leadership is the
effective communication
of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
WE WILL SUCCEED TO THE
EXTENT THAT OUR TEAM
“CAN’T WAIT FOR THE
WEEKEND TO END.” WE AIM TO
DENT THE UNIVERSE! (Scale
of 1 t0 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
Passion moves mountains.
Creating a “passionate enterprise”
is a modern leadership imperative.
“A leader is a
dealer in
hope.”
Napoleon
(+TP’s writing room pics)
BZ: “I am a …
Dispenser of
Enthusiasm!”
I AM AN … ENTHUSIAST. MY
ENTHUSIAM IS CONTAGIOUS. WE
HAVE FUN. WE AIM TO GO ON
“QUESTS” AND CHANGE THE
WORLD. THAT IS MY
COMMITMENT. THAT IS MY
LEGACY. THAT IS MY (LOUD) LIFE.
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
Successful Businesses’ Dozen Truths: TP’s 30 Year Perspective
1. Insanely Great & Quirky Talent.
2. Disrespect for Tradition.
3. Totally Passionate (to the Point of Irrationality) Belief in What
We Are Here to Do.
4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”
5. A Maniacal Bias for Execution … and Utter Contempt
for Those Who Don’t “Get It.”
6. Speed Demons.
7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)
8. Passionate Hatred of Bureaucracy.
9. Willingness to Lead the Customer … and Take the Heat Associated
Therewith. (Mantra: Satan Invented Focus Groups to Derail True
Believers.)
10. “Reward Excellent Failures. Punish Mediocre Successes.”
11. Courage to Stand Alone on One’s Record of Accomplishment
Against All the Forces of Conventional Wisdom.
12. A Crystal Clear Understanding of Brand Power.
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10. Avoid moderation!
Sir Richard’s Rules:
Follow your passions.
Keep it simple.
Get the best people to help you.
Re-create yourself.
Play.
Source: Fortune/10.03
The Re-imagineer’s Credo … or,
Pity the Poor Brown*
Technicolor Times demand …
Technicolor Leaders and Boards who recruit …
Technicolor People who are sent on …
Technicolor Quests to execute …
Technicolor (WOW!) Projects in partnership with …
Technicolor Customers and …
Technicolor Suppliers all of whom are in pursuit of …
Technicolor Goals and Aspirations fit for …
Technicolor Times.
*WSC
“In Tom’s world it’s always
better to try a swan dive and
deliver a colossal belly flop
than to step timidly off the
board while holding your
nose.” —Fast Company /October2003