Transcript Tom Peters Seminar2001 We Are in a Brawl with No Rules! Madison/MiddletonWI/10.04.2001 “There will be more confusion in the business world in the next decade than in.

Tom Peters Seminar2001
We Are in a
Brawl with No
Rules!
Madison/MiddletonWI/10.04.2001
“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
Uncertainty: We
don’t know
when things will get back
to normal.
Ambiguity: We
no longer
know what “normal”
means.
BMcC: (1) Hierarchy vs.
“Network organization.” (2)
NWO = “Doctrine as center of
gravity”/source of motivation;
distributed support & decisionmaking;largely self-organizing;
“outside the military sphere.”
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs
of Staff
From:
To:
Weapon v. Weapon
Org structure v. Org
structure
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
All Slides Available at …
tompeters.com
Note: Lavender text in this file is a link.
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
Forbes100 from 1917 to 1987: 39 members of the
Class of ’17 were alive in ’87; 18 are in ’87 F100; the
18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the
market from 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
“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
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
“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)
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Brand Inside
Brand Org:
Lean, Linked,
Internet-driven, Virtual
White
Collar
Revolution!
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
The Pincer 5
1 “Destructive” entrepreneurs/
Global Competition
.
2 “White Collar Robots”
.
3 THE INTERNET!
.
[E.g.: GM + Ford + DaimlerChrysler]
4. Global Outsourcing
[E.g.: India, Mexico]
5. Speed!!
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
Automation+
75% of what we do: 40
“expert” decision rules!
IBM’s Project eLiza!
The Pincer 5
1 “Destructive” entrepreneurs/
Global Competition
.
2 “White Collar Robots”
.
3 THE INTERNET!
.
[E.g.: GM + Ford + DaimlerChrysler]
4. Global Outsourcing
[E.g.: India, Mexico]
5. Speed!!
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
“Don’t own nothin’
if you can help it. If
you can, rent your
shoes.”
F.G.
Better Red than Dead?/
Better Dead than Red?
“We will see more and
more outsourcing of
discovery processes.”
Craig Venter
Better Red than Dead?/
Better Dead than Red?
“If we completely
outsourced all of our genetic
analysis, we’d be held
hostage by outside people.”
Brian Spear, Director of
Pharmacogenomics, Abbott Labs
Brand Inside
Brand Work: The
Professional
Service Firm
Model
So what will be the
Basic Building
Block of the
New Org?
Every job done
in W.C.W. is also
done “outside”
…for profit!
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!
BMW’s
Designworks/USA:
>50% from outside
work
eHR*/PCC**
*All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR
Department, John Sullivan, IHRIM
(1) 100% goes on the Web.
(2) Non-awesome is
outsourced.
(3) Remaining “Centers of
Excellence” are leveraged
to the hilt!
Brand Inside
The Heart of the Value
Creation Revolution:
PSF Unbound!
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]
HP … Sun … GE … IBM
… UPS … UTC …
General Mills … Springs
… Anheuser-Busch …
Carpet One … Delphi …
Etc. … Etc.
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
“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
GE’s New Six Sigma Approach
Old 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
“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)
Springs
Collections.
Flexible sourcing.
Packaging.
Merchandising.
Promotion.
Design.
Systems & Site mgt.
= Turnkey.
Brand Inside
Brand You:
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
Minimum New Work SurvivalSkillsKit2001
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Sam’s
Secret #1!
Minimum New Work SurvivalSkillsKit2001
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
“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
[“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)
Invent. Reinvent. Repeat.
Source: HP banner ad
Brand Inside
Redefining the Work
The WOW
Project
Itself:
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Brand Inside
Brand Action:
Getting Started … a
Personal Perspective
The following slide begins the
“Boss-Free Implementation of
Stuff That Matters” Section. The
slides in this section are heavily
annotated.
Use Normal or Notes Page View to
access the notes.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
Model F4
Find a Fellow
Freak Faraway
Heart of the Matter
F2F!/K2K!/
1@T/R.F!A.*
*Freak to Freak/Kook to Kook/
One at a Time/ Ready.Fire!Aim.
THE NUGGET
Do Something.
Do Anything.
Get Going.
Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Hell-I-Wish-It-WereOver Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our
Incredible Staff”
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?
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!
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2001
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of
command”
“Support the boss”
“Make budget”
*Fortune, article on
“Most Admired Global Corporations”
Sales2001
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.
3. Know the customer. (Including the customer’s
consultants.) (And especially the “corporate culture.”)
4. Love internal politics at home and abroad.
5. Religiously respect competitors. (No badmouthing, no
matter how provoked.)
6. Wire the customer’s org. (Relationships at all levels &
functions.)
7. Wire the home team’s org. and vendors’ orgs.
(INVEST Big Time time in relationships at all levels & functions.)
(Take junior people in all functions to client meetings.)
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.)
9. Sell only by solving problems-creating profitable
opportunities. (“Our product solves these problems, creates
these unimagined INCREDIBLE opportunities, and will make you
a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT
SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF
5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE
TRADE PRESS?)
10. Will involve anybody—including mortal enemies—if
it enhances the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.
11. Know the Brand Story cold; live the Brand Story. (If
not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible
for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s
organization & build up their Rolodex.
15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort
that’s sometimes better than a lousy win.)
17. Think those who regularly say “It’s all a price issue”
suffer from rampant immaturity & shrunken imagination.
18. Will not give away the store to get a foot in the door.
19. Are wary & respectful of upstarts—the real enemy.
20. Seek several “cool customers”—who’ll drag you into
Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even
though it is way overused. (“Partnership” includes folks at
all levels throughout the supply chain.)
22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for “little things.”) (50% of those notes are
sent to those in our company!) Remember birthdays. Use
the word “we.”
23. When you look across the table at the customer,
think religiously to yourself: “HOW CAN I MAKE THIS
DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?”
24. Great salespeople can affirmatively respond to the
query in an HP banner ad: HAVE YOU CHANGED
CIVILIZATION TODAY?
25. Keep your bloody PowerPoint slides simple!
Brand Inside
Brand Talent: The
Great War for Talent
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Sports
Franchise GM
Model 24/7:
2. Greatness
Only The Best!
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)
3. Performance
Up or out!
“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.
4. Pay
Fork Over!
“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)
What gets measured
gets done. What gets
paid for gets done
more. What gets paid
a lot for gets done
a lot more.
5. Youth
Grovel Before the Young!
“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]
6. Diversity
Mess Rules!
“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
7. Women
Born to Lead!
“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
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
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 individual 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
“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
“Investors are looking more and
more for a relationship with their
financial advisers. They want
someone they can trust, someone
who listens. In my experience, in
general, women may be better at
these relationship-building skills
than are men.”
Hardwick Simmons, CEO, Prudential Securities
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 courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (May2000)
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
8. Weird
The Cracked Ones
Let in the Light!
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
enough
weird people in
“Are there
the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
48 Players =
48 Projects =
48 different success
measures
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
Source: Ed Michaels et al., The War for Talent
Brand Inside
Brand Talent+: The
Education Fiasco
Losing the
War to
Bismarck
“My wife and I went to a [kindergarten] parentteacher conference and were informed that our
budding refrigerator artist, Christopher, would be
receiving a grade of Unsatisfactory in art. We
were shocked. How could any child—let alone
our child—receive a poor grade in art at such a
young age? His teacher informed us that he
had refused to color within the lines, which
was a state requirement for demonstrating
‘grade-level motor skills.’ ”
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En mass the children leapt from their
seats, arms waving. Every child was an artist. SECOND GRADE:
About half the kids raised their hands, shoulder high, no higher.
The hands were still. THIRD GRADE: At best, 10 kids out of 30
would raise a hand, tentatively, self-consciously. By the time I
reached SIXTH GRADE, no more than one or two kids raised their
hands, and then ever so slightly, betraying a fear of being
Every
school I visited was was participating
in the suppression of creative genius.”
identified by the group as a ‘closet artist.’ The point is:
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
J. D. Rockefeller’s General Education Board
“In our dreams people
yield themselves with perfect
docility to our molding hands. …
(1906):
The task is simple. We will organize
children and teach them in a perfect way
the things their fathers and mothers are
doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
An Unnatural
Way to
“Learn”
Schools’ “Kafka-like rituals”: “enforce sensory
deprivation on classes of children held in
featureless rooms … sort children into rigid
categories by the use of fantastic measures such as
age-grading, or standardized test scores … train
children to drop whatever they are occupied with
and to move as a body from to room at the sound of
a bell, buzzer, horn, or klaxon … keep children
under constant surveillance, depriving them of
private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children
numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist
that every moment of time be filled with lowlevel abstractions … forbid children their own
discoveries, pretending to possess some vital
secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
Doing Stuff
that Matters!
“During the first years of
life, youngsters all over
the world master a
breathtaking array of
competences with little
formal tutelage.”
Howard Gardner, The Unschooled Mind
The Learner’s Manifesto
The brain is always learning.
Learning does not require coercion.
Learning must be meaningful.
Learning is incidental.
Learning is collaborative.
The consequences of worthwhile learning
are obvious.
Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
U.C. Ed Dean Walter Karp: “From the first grade
to the twelfth, from one coast to the other,
instruction in America’s classrooms is almost
Answers are
‘right’ and answers are
‘wrong,’ but mostly
answers are short.”
entirely dogmatic.
Frank Smith, Insult to Intelligence
Most important 3 letters:
Tom’s Edu3M
Manifesto*
*Manifesto for Education in the 3rd Millennium
Education3M
Learning is a normal state.
Children are learnavores.
Prodigious feats of learning are common as dirt.
[Watch an H.S. QB studying game film.]
We learn at different rates.
We learn in different ways.
Boys and girls learn [very] differently.
In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.
Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes,
of which testing is but one—and abnormal, by “real
world” standards.
Education3M
We learn most/fastest/most completely when we
are passionate about what we are learning and it
matters to us. [Salience rules!]
Think EBI/LBI: Education by Interest/
Learning by Internship.
Classrooms are abnormal places.
We need changes of pace. [Japanese recesses between
each class.]
International test scores are not correlated with
hours-per-year in class.
Big classes are slightly problematic. Big schools
suck. Period.
Education3M
“All this”—the right stuff—fits the NWW/New World
of Work hand-in-glove. [NWW = Age of Creativity.]
U.S. schools circa 2001 are a vestige of the
Prussian-Fordist model, more interested in shaping
behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.
Learning is a matter of Intensity of Engagement, not
elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get
to know kids as individuals.
Scientific discovery processes and the teaching of
science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3M
Our toughest “learning achievement”—
mastering our native language—does not
require schools, or even competent parents. [It
does require a desperate need-to-know.]
Great teachers are great learners, not impartersof-knowledge.
Great teachers ask great questions—that launch
kids on lifelong quests.
The world is not about “right” & “wrong”
answers; it is about the pursuit of increasingly
sophisticated questions—just ask a ski
instructor or neurosurgeon.
Education3M
Most schools spend most of their time setting
up contexts in which kids learn not to like
particular subjects. [Evidence shows that such antilearning sticks!]
Vigorous exploration is normal … until you are
incarcerated in a school.
“Bite size” education-learning is neither
education nor learning.
Learning takes place rapidly on the cheerleading
squad, the football team, the school newspaper,
the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3M
The “school reform” “movement” is a giant step …
backwards … embracing the Prussian-Fordist
paradigm with renewed vigor—at exactly the
wrong time.
There are large numbers of superb schools, superb
principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily
supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily
attract “cool dudes & dudettes.”
Schools of “education” should by and large have
their charters revoked.
Education3M
Stability is dead; “education” must therefore
“educate” for an unknowable, ambiguous,
changing future; thence, learning to learn &
change is far more important than mastery of a
static body of “facts.”
“Education” must “develop in youth the
capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.]
[Hint: It doesn’t.] [Hint: Understatement.]
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
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
“Future-defining
customers may account
for only 2% to 3% of your
total, but they represent
a crucial window on the
future.”
Adrian Slywotzky, Mercer Consultants
Benchmarking, Perils of …
“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
“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
The Top Creators of Shareholder Value
Accept depressed earnings for
several quarters to support hot
product.
Expense rather than capitalize new
venture costs.
Bonuses without caps.
Source: Fortune (09.17.201)
Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.
[Inundate yourself with weird.]
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Sameness 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
10X/10X
Brand Outside
Strategy 1A:
Use E-Commerce to
Re-invent Everything!
Dell’s OptiPlex Facility
Big Job: 6
to 8 hours.
(20,000 per day)
Parts Inventory: 2
hours,
100 square feet.
(Overall, 5 days vs. 50 to 90 days; target is
2.5 days)
Cisco!
90% of $20B (=$50M/day)
Annual savings in service
and support from customer
self-management: $550M
Secret Cisco: Community!
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)
WebWorld = Everything
Web as a way to run your business’ 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
Message: There
is no such
thing as an effective B2B or
Internet-supply chain
strategy in a low-trust,
bottleneckedcommunication, six-layer
organization.
“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’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!
…
Brand Outside
Strategy 1B:
Embracing an e-Led
Age of
Self-Determination
“Parents, doctors, stockbrokers,
even military leaders are starting to
lose the authority they once had.
There are all these roles premised on
access to privileged information. …
What we are witnessing is a
collapse of that advantage,
prestige and authority.”
Michael Lewis, next
Impact #1:
Healthcare
HealthCare2001
Consumerism X
Demographics X
IS/Internet X
Info Consolidators X
Genetics & Devices
= YIKES!
1. Consumerism (Patientcentric Healthcare)
“A seismic shift is underway in
healthcare. The Internet is
delivering vast knowledge and new
choices to consumers—raising their
expectations and, in many cases,
handing them the controls.
[Healthcare] consumers are driving
radical, fundamental change.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
Consumer Imperatives
Choice
Control (Self-care, Self-management)
Shared Medical Decision-making
Customer Service
Information
Branding
Source: Institute for the Future
2. Demographics: The
BOOMERS Reach 55!
Boomer World
“From jogging to plastic
surgery, from vegetarian diets
to Viagra, they are fighting to
preserve their youth and
defy the effects of gravity.”
M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in
charge!” (4) “We’ll take no
guff from from anyone.”
(5) “We know the emperor
has no clothes.”
IS/Web
3. The
REVOLUTION
“We’re in the Internet
age, and the average
patient can’t email
their doctor.”
Donald Berwick, Harvard Med School
“Without being disrespectful, I
consider the U.S. healthcare
delivery system the largest cottage
industry in the world. There are
virtually no performance
measurements and no
standards. Trying to measure
performance … is the next
revolution in healthcare.”
Richard Huber, former CEO, Aetna
“As unsettling as the prevalence of
inappropriate care is the enormous amount of
what can only be called ignorant care. A
surprising 85% of everyday medical
treatments have never been scientifically
validated. … For instance, when family
practitioners in Washington were queried about
treating a simple urinary tract infection, 82
physicians came up with an extraordinary 137
strategies.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“In health care,
geography is
destiny.”
Dartmouth Medical School 1996 report, from
Demanding Medical Excellence: Doctors and
Accountability in the Information Age,
Michael Millenson
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
“Practice variation is not caused by ‘bad’ or
‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.”
Michael Millenson, Demanding Medical Excellence
4. Information
Consolidators: The
Network Maestros
WebMD
& assigns)
(or heirs
5. Genetics &
Devices
“Recognizing that a
single misspelled gene
means the difference
between being poisoned
and being cured was the
first victory for the new science
of pharmacogenetics.”
Newsweek (06.25.01)
“Pharmacogenomics could
fundamentally change the nature
of drug discovery and marketing,
rendering obsolete the
pharmaceutical industry’s practice of
spending vast amounts of time and
money to craft a single medicine with
mass-market appeal.”
The Industry Standard (05.28.01)
“There is no question in my
mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon
the FDA’s approval of robotic partialbypass surgery
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status:
$1.3T. 70M uninsured. 90K killed and 2M
injured p.a. in hospitals. 85% treatments
unproven. Cure depends on locale in
which treated. 50% prescriptions not
work. 2X docs. 2X hospitals. IS primitive.
Accountability & measurement nil. And
everybody’s mad and feels powerless:
docs, patients, nurses, insurers,
employers, hospital administrators
and staff.
Brand Outside
Strategy 2A:
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
2/3rds working women/
50+% 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
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
M
1996 … 42
Yeow!
1970 … 1%
2002 …
50%
OPPORTUNITY
NO.
1!*
[* No shit!]
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.”
“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!)
Read This: Barbara & Allan Pease’s
Why Men Don’t
Listen & Women
Can’t Read Maps
“It is obvious to a women when
another woman is upset, while a man
generally has to physically witness
tears or a temper tantrum or be
slapped in the face before he even has
a clue that anything is going on. Like
most female mammals, women are
equipped with far more finely tuned
sensory skills than men.”
Barbara & Allan Pease,
Why Men Don’t Listen & Women Can’t Read Maps
“Resting” State: 30%, 90%: “A
woman knows her children’s
friends, hopes, dreams, romances,
secret fears, what they are
thinking, how they are feeling. Men
are vaguely aware of some short
people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps
“As a hunter, a man needed vision that
would allow him to zero in on targets in the
distance … whereas a woman needed eyes
to allow a wide arc of vision so that she
could monitor any predators sneaking up
on the nest. This is why modern men can
find their way effortlessly to a distant pub,
but can never find things in fridges,
cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage
contributes significantly to what is
called ‘women’s intuition’ and is one
of the reasons why a woman can read
between the lines of what people say.
Men, however, shouldn’t despair.
They are excellent at imitating
animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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.
Faith Popcorn, 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
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
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!”
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
“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
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
(272?)
16;
Brand Outside
Strategy 2B:
Welcome to
“Old World”!
“ ‘Age Power’ will
st
rule the 21 century,
and 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!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
[ Member Growth: 1987 – 1997
18 – 34: 26%
35 – 49: 63%
50+: 118%
Source: IHRSA]
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
$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
Brand Outside
Strategy 2C:
Welcome to
“Green World”!
50% to 36%:
Protect Environment >
Economic Growth.
And #3: GREEN?????:
58% to 34%: Protect Plants &
Animals > Preserve Private
Property Rights.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered:
M, 35%; F, 47%
Source: www.pulse.org & USA Today
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
Brand Outside
Strategy 3A:
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
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
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”!
Not about ... $79,000 objects
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
Design “is” … WHY I
GET MAD.
MAD.
Wanted: 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.
Philippe Starck
“Today the problem is not how
to produce more to sell more.
The fundamental question is
that of the product’s right to
exist. And it is the designer’s
right and duty to question the
legitimacy of the product.”
Philippe Starck
“[At Thompson] I outlawed the word ‘consumer’
in all company meetings, and insisted it be
replaced by the words ‘my friend,’ ‘my wife, ‘my
daughter,’ ‘my mother,’ or ‘myself.’ It doesn’t
sound the same at all, if you say: ‘It doesn’t
matter, it’s shit, but the consumers will make do
with it,’ or if you start over again and say, ‘It’s
shit, but it doesn’t matter, my daughter will make
do with it.’ All of a sudden, you can’t get away
with it anymore. There is an enormous task to be
done with this kind of symbolic repositioning.”
Philippe Starck
“I invented the slogan ‘Thompson: from
technology to love.’ That completely
repositioned the problem. Because now
we were saying that technology wasn’t
an end in itself, but just a means—and
that the real goal was what had
always been there, the original priority,
humanity, whose ultimate criterion is love.
That connects back to the idea of the
friendly object, the good object.”
Philippe Starck
“My main task when I was
artistic director at Thompson for
four years: to make the company
virtuous. Not because there was
a desire to do evil, but because
they had simply forgotten their
purpose in life – to be of
service.”
Philippe Starck
“Today, 80 per cent of objects are
unnecessarily macho. Yet it is
plain: The intelligence of a truly
modern society must be
feminine. … Apart from a machine
pistol, I can’t think of many objects
which actually need to be
extravagantly masculine.”
Philippe Starck
Brand Outside
Strategy 3B:
It’s the Experience!
“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
“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
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based
Leadership
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
Message:
“Experience” is the
“Last 80%”
“Experience” applies to
all work!
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“My main task when I was artistic
director at Thompson for four years: to
make the company virtuous. Not
because there was a desire to do evil,
but because they had
simply forgotten their
purpose in life—to be of
service.”
Philippe Starck
“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
“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 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.]
“Brand Promise” Exercise: (1) Who
Are WE? (poem/novella/song, 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!
1st Law Mktg Physics: OVERT BENEFIT
(Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE
(Stand & Deliver!)
3RD Law: DRAMATIC
DIFFERENCE
(Execs Don’t Get It: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions
“How likely are you to purchase
this new product or service?” (95%
to 100% weighting by execs)
“How unique is this new product
or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall,
Jump Start Your Business Brain
“WHO ARE
WE?”
WHAT’S
OUR
STORY?
“EXACTLY
HOW ARE WE
DRAMATICALLY
DIFFERENT?”
“ WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DIFFERENCE TO THE
CLIENT ”
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
The Leadership50
Leading in
Totally Screwed
Up Times
1. Leaders Cede
Control.
“I don’t
know.”
1A. Leadership Is a
… Mutual
Discovery
Process.
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a luxuriant
portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express
their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people
(5) go to-create places they (and their mentors-teachersleaders) had never dreamed existed—and then the
leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells
100 times to commemorate the bravery of their
“followers’ ” explorations!
2. Great Leaders on Snorting
Steeds Are Important – but
Great Managers/Talent
Developers (Type I
Leadership) are the Bedrock
of Organizations that Perform Over
the Long Haul.
Sports
Franchise GM
Model24/7:
P.S.: Jack didn’t
have a vision!
2A. “Just One”: Great
Leading = Great
Mentoring.
FindDevelop-Mentor
Goal of the Year No. 1*:
ONE Extraordinary
Person.
*CEO, large financial advisory firm, April 2001
3. But Then Again, There
Are Times When This
“Cult of Personality”
(Type II Leadership) Stuff
Actually Works!
“A leader is a
dealer in
hope.”
Napoleon
Leaders don’t just make products
and make decisions.
Leaders make
meaning. – John Seeley
Brown
4. Find the
“Businesspeople”!
(Type III Leadership)
I.P.M.
(Inspired Profit
Mechanic)
4A. All Organizations
Need the Golden
Leadership
Triangle.
The Golden Leadership
Triangle: (1) CreatorInventor-Visionary … (2)
Talent Fanatic … (3)
Inspired Profit Mechanic.
Project Team Golden Triangle
(1) Champion-Maniac.
(2) Implementer-Pol. (3)
Schedule & Budgets
Fanatic.
5. Leadership Mantra
#1: IT
ALL
DEPENDS!
Renaissance Men
are … a snare, a
myth, a delusion!
6. The Leader Is
Rarely/Never the
Best Performer.
33 Division Titles. 26
League Pennants. 14
World Series: Earl Weaver—0.
Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony
LaRussa—132 games, 6 seasons.
Tommy Lasorda—P, 26 games.
Sparky Anderson—1 season.
7. Leaders
LOVE the
MESS!
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
7A. Leadership
Is Improv!
Duct Tape Rules!
“Andrew Higgins, who built landing craft
in WWII, refused to hire graduates of
engineering schools. He believed that they only
teach you what you can’t do in engineering
school. He started off with 20 employees, and by
the middle of the war had 30,000 working for
him. He turned out 20,000 landing craft. D.D.
Eisenhower told me, ‘Andrew Higgins won the
war for us. He did it without engineers.’ ”
Stephen Ambrose/Fast Company
7B. Leaders
Groove on
AMBIGUITY!
“Most of our
predictions are based
on very linear thinking.
That’s why they will
most likely be wrong.”
Vinod Khosla, in “GIGATRENDS,” Wired 04.01
8. Leaders
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!)
8A. Leaders
Re
-do.
“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
8B. Leaders Are
PLAYFUL.
“You can’t be a serious innovator
unless and until you are ready,
willing and able to seriously play.
‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage,
Serious Play
Never trust
a “boss” with
no toys in
his/her office!
Axiom:
9. BUT … Leaders
Know When to
Wait.
The
“too hard”
box!
Tex Schramm:
Axioms: (1)
Pick your
battles carefully. (2)
Sometimes inaction
promotes sorting out &
preserves options.
10. Leaders
DELIVER!
10A. Leaders
KNOW They Can
Make a Difference!
“Leaders don’t
‘want to’ win.
Leaders ‘need
to’ win.”
#49
10B. Leaders Are
Optimists.
“[Ronald Reagan]
radiated an almost
transcendent
happiness.”
Lou Cannon, George (08.2000)
11. BUT …
Leaders Are
Realists/Leaders
Win Through
LOGISTICS!
“Gus
Imperative”!
The
12. Leaders
FOCUS!
“To
Don’t ”
List
Leaders “dump
the
ones who brung
’em” —Nokia, HP, 3M,
PerkinElmer, Corning, Enron, etc.
13. Leaders
Trust in
TRUST!
Credibility
13A. Leaders Infuse the
Dreaded-All Important
“Evaluation Process”
with CREDIBILITY!
25 = 100
Talent-minded leaders: (1) treat the
evaluation process strategically;
(2) invest enormous amounts of
personal time in it (to give it
credibility & amass data); (3)
depend on dialogue & “plain
English,” not obscure,
standardized “instruments.”
14. Leaders Understand
the Ultimate Power
of
RELATIONSHIPS.
“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
14A. Leaders Say
“Thank
You.”
“The deepest
human need is the
need to be
appreciated.”
William James
“The two most
powerful things I know
in existence:
a kind word and a
thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from
Ronna Lichtenberg, It’s Not Business, It’s
Personal]
14B. Leaders
Wire the Joint!
Winners wire.
Losers are
slaves to rank.
“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
14C. Leaders Are
Natural
EMPOWERMENT
FREAKS!
15. Leaders Know …
Women Roar/
Women Rule.
“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
15A. Oh Yeah … and
Women Buy All
the Stuff
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
16. Leaders LOVE
RAINBOWS – for
Pragmatic Reasons.
“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
16A. Leaders Pursue
Poets!
“Expose yourself to the
best things humans have
done, and then try to
bring those things into
what you’re doing.”
Steve Jobs
Gardner’s MI7: Logical-
mathematical, Linguistic,
Spatial, Musical,
Bodily-kinesthetic,
Interpersonal,
Intrapersonal.
17. Leaders
FORGET!/
Leaders
DESTROY!
“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
18. BUT … Leaders
Have to Deliver, So They
Worry About “Throwing
the Baby Out with the
Bathwater.”
“Damned If You
Do, Damned If You
Don’t, Just Plain
Damned”
Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy
Adaptivity,” Liberation Management (1992)
19. Leaders …
HONOR THE
USURPERS.
Saviors-in-Waiting
Disgruntled Customers
Upstart Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost
Customers, and Rogue Employees
20. Leaders
HANG OUT
WITH
FREAKS!
Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.
[Inundate yourself with weird.]
21. Leaders Make
[Lotsa] Mistakes –
and MAKE NO
BONES ABOUT IT!
Sam’s
secret #1!
22. Leaders Make BIG
MISTAKES!
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
22A. Leaders Honor
Mistakes & Create
“Blame-free
‘Cultures.’ ”
Accountability: YES!
Witch hunts: NO!
23. Leaders Set
DESIGN
SPECS.
1@T: (1) Neutron
JackWorld/
Jack. (Banish bureaucracy.) (2) “1, 2
or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
23A. Leaders Send
V-E-R-Y Clear
Signals About
Design Specs!
Ridin’ with Roger: “What
have
you done to
DRAMATICALLY
IMPROVE quality in the
last 90 days?”
24. Leaders Know
When to
CHALLENGE (BURN)
Design Specs!
“The ‘chump-tochamp-to-chump cycle’
used to be three
generations. Now it’s
about five years.”
Bill McGowan
25. Leaders Know that
THERE’S MORE TO LIFE
THAN “LINE EXTENSIONS.”
Leaders Love to CREATE NEW
MARKETS.
No one ever made it
into the Business Hall
of Fame on a record of
“line extensions.”
“Acquisitions are about
buying market share. Our
challenge is to
create markets.
There is a big difference.”
Peter Job, CEO, Reuters
26. Leaders Pursue
DRAMATIC
DIFFERENCE!
1st Law Mktg Physics: OVERT BENEFIT
(Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE
(Stand & Deliver!)
3RD Law: DRAMATIC
DIFFERENCE
(Execs Don’t Get It: “intent to purchase” – 100%;
“unique” – 0% to 5%)
Source: Jump Start Your Business Brain, Doug Hall
27. Leaders Push Their
Organizations W-a-y Up the
Value-added/
Intellectual Capital
Chain
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
28. Leaders
LOVE the
New Technology!
I’net …
allows you to
dream dreams
you could never
have dreamed
before!
…
28A. Needed? Type IV
Leadership:
Technology
Dreamer-True
Believer
The Golden Leadership
Quadrangle: (1) CreatorInventor-Visionary … (2)
Talent Fanatic … (3)
Inspired Profit Mechanic.
(4) Technology DreamerTrue Believer
29. When It Comes to
TALENT … Leaders
Always Swing for the
Fences!
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
30. Leaders Don’t
Create “Followers”:
THEY CREATE
LEADERS!
Brand You, Big Time!
I AM AN
ARMY OF
ONE
31. Leaders “Win
Followers Over”
WHAT AN IDIOT: “Instead
of employees being in the driver’s
seat, now we’re in the driver’s
seat.”
“Coaching
is winning
players over.”
PJ:
32. Leaders
“Manage” Their
EVP/Internal Brand
Promise.
Talent = Brand
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
Source: Ed Michaels et al., The War for Talent
33. Leaders Know “It’s
My Fault.”
You recruited ’em.
You hired ’em.
You trained ’em.
You evaluated ’em.
You “motivated” ’em.
33A. Leaders Don’t
Scapegoat/Allow
Scapegoating.
34. Leaders have
MENTORS.
Upon
having the Leadership
Mantle placed upon thine
head, thou shalt never
hear the unvarnished
truth again!*
The Gospel According to TP:
(*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.)
35. Leaders Out
Their
PASSION!
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“Let’s make a dent
in the
universe.”
Steve Jobs
36. Leaders Know:
ENTHUSIASM
BEGETS
ENTHUSIASM!
BZ: “I am a …
dispenser of
enthusiasm!”
37. Leaders Know It’s ALL
SALES ALL THE
TIME.
Sales2001
38. Leaders
LOVE
“POLITICS.”
If you don’t LOVE
POLITICS … find
another life. (Don’t pretend
TP:
you’re a “leader.”)
39. Leaders
Give …
RESPECT!
“It was much later that I realized Dad’s
secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids
in Spring Valley who shined shoes the
same way he talked and listened to a
bishop or a college president. He
was
seriously interested in who you
were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
40. Leaders
LISTEN!
See Stephen!
41. Leaders …
SHOW UP!
P.S. …
5,000
miles for a 5
min. meeting.
Mark McCormack:
“Leaders are living
individuals whom
employees smell, feel,
touch their presence.”
#49
Rudy!
42. Leadership
Is a Performance.
BELIEVE IT.
“You must be
the change you
wish to see in the
world.”
--M.G.
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
“It is necessary for the
President to be the
nation’s No. 1 actor.”
FDR
43. Leaders Have
GREAT
STORY!
a
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Stories of identity – narratives
that help individuals think about
and feel who they are, where
they come from, and where they
are headed – constitute the
single most powerful weapon
in the leader’s arsenal.”
Howard Gardner, Leading Minds: An
Anatomy of Leadership
“He who has the
best story wins.”
Hopkins to Freeman
44. Leaders
Create
BUZZ!
“You have to
market the
intelligence.”
Herbert Meyer, former Special Asst. to the Director of
Central Intelligence (Hardball/10.01.01)
44A. Leaders Seed &
Pursue &
Recognize (Weird)
“Demos.”
L.B.I.W.D.
Inducing Weird Demos)
(Leading By
Leaders aimed on changing their
world identify
palpable
heroes, who executed
palpable projects—they
point to these people and say to
the masses, “See, here it is, done
by one of your own.” (And then they
“deep-dip” a few of those heroes to demo their
seriousness.)
45. Leaders
Focus on the
SOFT STUFF!
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.]
46. Leaders SERVE.
Servant
Leadership
Robert Greenleaf:
47. Leaders KNOW
THEMSELVES.
Individuals (would-be leaders)
cannot engage in a
liberating mutual discovery
process unless they are
comfortable with their
own skin. (“Leaders” who are not
comfortable with themselves become petty
control freaks.)
48. Leaders Are
Graceful.
“My favorite word is grace –
grace,
saving grace, grace under
fire, Grace Kelly. How we live
whether it’s amazing
contributes to beauty – whether
it’s how we treat other people or
the environment.”
Celeste Cooper, designer
Rodale’s on “Grace” …
elegance … charm …
loveliness … poetry in
motion … kindliness ..
benevolence … benefaction
… compassion … beauty
GRACE. An evening sunset in Vermont in October. A
vase with one rose on the dining room table. A smile,
any smile. A smile from a loved one when you do
something really stupid. A hand from a stranger, when
you slip. A colleague who goes the extra mile (or inch)
and doesn’t call attention to it. A “little” “thank you”
for something you didn’t think the other person had
noticed. Any sunrise. A comfy couch. Comfy sweats.
A faithful dog’s slobbery greeting when you get home,
at 2a.m., from a 4-day bus trip. Home. A unique
pattern of ice crystals on the window on a frigid
morning. A warm, half-hour bath. The silence of the
forest. The first cherry blossoms in California in
February. or D.C. in April. Paris.
Especially in
times of stress/
confusion!
TP:
49. Leaders
???:
“LEADERS NEED TO
BE THE ROCK OF
GIBRALTAR ON
ROLLER BLADES”
“ ‘It’s only business,
not personal’ … IT
ALWAYS IS
PERSONAL.”
“Hire smart – go
bonkers – have grace –
make mistakes – love
technology – start all
over again.”
“Leadership is the
PROCESS of
ENGAGING PEOPLE in
CREATING a LEGACY
of EXCELLENCE.”
50. Leaders Know
WHEN TO
LEAVE!