Distinct or … Extinct Tom Peters Seminar2000 Manchester NH 14 June 2000 Defeated Before The Starter’s Gun! “Track 4: Managing Organization Change (Helping Tired and Overworked Professionals with.
Download ReportTranscript Distinct or … Extinct Tom Peters Seminar2000 Manchester NH 14 June 2000 Defeated Before The Starter’s Gun! “Track 4: Managing Organization Change (Helping Tired and Overworked Professionals with.
Distinct or … Extinct
Tom Peters Seminar2000
Manchester NH
14 June 2000
Defeated Before The Starter’s Gun!
“Track 4: Managing Organization Change (Helping Tired and Overworked Professionals with Today’s Workplace Realities)”
NAPM:
“You are the Rock Stars of the B2B Age!”
An Age of Passion: 1 Year = 1.5 Wal*Marts
03.27.99: $167B 03.27.00: $555B
P.S.: Wal*Mart = #8 in 2000
It Makes John Chambers Smile!
“We have in our house, among two working parents, two teens and an 8-year old, five computers (both Mac and Windows), four cell phones, seven phone lines, two Palm Pilots, one DSL, two ISP connections, a collection of personal domain names, a CD burner, a scanner and one AOL account.” Michael Wolff, writer [as reported in New York 06.00]
Pentium III 800MHz: $42,893.00/# Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
“Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner than a strand of hair – combines a healthy human cell with an electronic circuitry chip.” AP/AOL/02-00
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company (New York, 5-99)
64/24
Goal?
Welcome to the Land of the True Believers!
“We have the ability to turn the economy upside down, to enhance lives, and to drive civilization forward.” Michael Saylor, MicroStrategy
“It means nothing less than the total reinvention of this company.”
Jacques’ New New Ford Ford + MSN CarPoint Ford + Yahoo!
Ford + Oracle Ford + HP/MCIWorldcom Etc.
Etc.
“We are in a
brawl with no rules.”
Paul Allaire
S.A.V.
T.T.D.s
The next slide is the first of many “T.T.D.” activities. I.e.: Things To Do. These are by and large shorthand forms of training exercises I use.
Also: Each of these T.T.D. slides has accompanying Notes.
(See following slide.)
Tom Peters
T.T.D./True or False: “incrementalism”
VERSUS
“innovation”?
• •
Notes Page This is a daunting issue. There is no “right answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention. Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!
Tom Peters Seminar2000 Brand
Everything
:
Distinct or Extinct!
Structure Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Part I: Brand Inside
Part II: Brand Outside Part III: Brand Leadership
Forces @ Work I The Destruction Imperative!
Forget > Learn
“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”
Dee Hock
“It is generally much easier to kill an organization than change it substantially.”
Kevin Kelly, Out of Control
“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I draw a blank.’ ” Mark Sirower, The Synergy Trap
“Talent” and a
$2T
enterprise??????
“Acquisitions are about buying market share.
Our challenge is to create markets.
There is a big difference.” Peter Job, CEO, Reuters
“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco
Dept. Head I = Sports G.M. Dept. Head II = V.C.
G.M.
= The Recruitment and Development of Top Talent. [Period!]
V.C.
= Bets on “Talent.” Bets on Projects. [Period!]
Silicon Valley Success 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
“R & D” Intel’s venture fund: 275 investments, $8B Source: Fast Company , eCompany
Net World!
Act now . Analyze later.
Avram Miller
[ TP to Chain Owner … “Do 5 deals before you go home!”]
“It used to be that the big ate the small.
Now the fast eat the slow.”
Geoff Yang, IVP/ (Institutional Venture Partners)
C.E.O.
to
C.D.O.
The [New] G
e
Way
DYB.com
The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
Paradox Redux Atlanta: +113,600 = #1 metro area Layoffs [major]: BellSouth, Lockheed, Coca-Cola
Brand Inside Brand Org: Lean, Mean, Linked & Electronic
108 X 5
vs.
8 X 1*
* 540 vs. 8
And Now the Equivalent …
White Collar Revolution!
The Pincer 5 “Destructive” entrepreneurs/ Global Competition “White Collar Robots” THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!
RR on “Assetless” [J.B.] Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”
The “&-!!+#$% in the middle”* Jim Clark on Healtheon/WebMD * ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael Lewis,
The New New Thing
[ Incidentally … CEO Jeff Arnold Age: 30 First Start-up: Age 24]
“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s the relentless rise of the quasi adolescents who wield them.” Michael Schrage (06.00/Fortune)
“We want to be the air traffic controllers of electrons.”
Bob Nardelli, GE Power Systems
So does Enron!
[et al.]
Buzzsaw.com
Builders, Owners, Architects, Contractors, Suppliers $4T industry 5,300 commercial bldg. projects’ specs on-line; +70 per day
And …
e-Builder.com, BuildNet.com, EqualFooting.com [et al.]
Cemex and FDX!
12/31/00 (per Newsweek 04.24.00) 75% of U.S. universities will have on-line offerings/ 5.8 million students “Unbundling” profs’ jobs (star lecturer, facilitator)/ Repackage “content” as multi media “event” AAUP is angry! (Good news!) 355 studies: Equal results!
(and one teachers union study that disagrees!)
These are …
L.A.D.T.I.R.S.*
*Life-and-death-total-industry-reinvention struggles
Brand Inside Brand Work!
So what will be the
Basic Building
Block of the
New Org?
Why are there no books on how to create a “Cool, Rocking, WOW-producing Finance Department”?
You are the Rock Stars of the B2B Age!
[NAPM Redux: Welcome to the Y2K New Orleans Jazz and Real Cool Purchasing Dudes Festival!]
NAPM: Not NAPM: Not “Purchasing”!
“Supply Chain Mgt.” NAPM =
TE/IR!
*
* T otal E nterprise/ I ndustry R einvention!
Message to NAPM:
You are Re-invention Evangelists!
“support function” / “cost center” / “bureaucratic drag” or … “Rock Stars of the ‘Age of Talent’ ”
PSF 1.0
Professional Service Firm Conversion Kit / Release 1.0
PSF 1.0
Department Head to … Managing Partner, HR [IS, etc.] Inc.
Every job done in W.C.W. is also done “outside” … for profit!
Credo
“WORK WORTH PAYING FOR”
The “7Ps” of PSF 1.0
P rojects!
P assion!
P rovocation!
P artnership!
P olitics!
P rofessionalism!
P erformance!
C.I.O.
to C.E.F.R.N.S.*
* C hief E vangelist F or R eally N eat S tuff
“How long does ‘culture change’ take?”
What Do I “Do” First?
One Minute Excellence!*
*Thomas Watson
Culture Change is not Culture Change is not Culture change does not Culture Change does not “Corporate.” a “Program.” take “Years.” start “Today.” Culture Change starts
Right Now!
Culture Change
Lives in the Moment!
Culture Change is
Entirely in Your Hands!
Enter …
The WOW Project!
“Reward excellent failures. Punish mediocre successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget … who cares?” anon. seminar participant (4/99)
“You really got to me.
So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)
WOW Project Anatomy I. Create!
II. Sell!
III. Implement! IV. Exit!
Create/Reframers’ Rules: Rule 1: Never accept an assignment as given!
Rule 2: You’re never so powerful as when you are “powerless”!
Rule 3: Every “small” project contains the entire enterprise DNA!
T.T.D.
Examine that “small”/ “annoying” project you’re working on. Can it be re-cast as a WOW/ Culture Change Project? What are the hidden assumptions about customers/ suppliers/ employees?
Notes Page
•
I am adamant: Every project can be made into a “big deal” if your head is in the right place. So … now … COMPLETELY RE INVENT THAT “SMALL” PROJECT YOU ARE WORKING ON! No bull! E.g.: What about a “Memorial Day Employee Picnic that signals a whole new attitude toward our staff”?
Measures
–
WOW!
–
Beauty!
–
Raving Fans!
–
Impact!
“Every project we take on starts with a question:
How can we do what’s never been done before?”
Stuart Hornery, CEO, Lend Lease
WOW Project “Acid Test”
Can you explain it with zest to your 14-year-old?
Sell, Sell, Sell!
Master “The Pitch”!
Repeat: “I am a salesperson!” Read: Saul Alinsky, Rules for
Radicals
Implement/Culture of Prototyping “Effective prototyping may be
the most valuable core competence
an innovative organization can hope to have.” Michael Schrage
“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
Think about It!?
Innovation = Reaction to the Prototype Michael Schrage
T.T.D./ Prototyper’s Laws Define a small, practical test of something on a page or less of text. Now.
Gather “found” materials … on the [very] cheap.
Find a/one partner “customer” who’ll provide a test site.
Set a very tight deadline of about 5 days for the next concrete step.
Conduct the test! Debrief A.S.A.P.
Set the next test date. Now. [No more than 5 days hence.]
Notes Page
•
The idea is to establish a “rhythm of prototyping” that defines every project.
T.T.D./ Secret No. 1: Go horizontal: Find a (one!) “line” ally in “the Boonies”!
Forget “selling up”! Secret No. 2: Cool!
“Powerless” allies are Secret No. 3: Maniac! Become a Prototyping Secret No. 4: Embrace Politics / “Community Organizing”! Secret No. 5: Passion Rules! Get your story in shape!
Notes Page
•
Main Idea: YOU ARE NOT “POWERLESS.” Seek out allies in strange places … and get going! DO NOT WASTE TIME “SELLING UP.”
•
Attitude: You are the Gandhi/King of your “mission.”
•
So: IDENTIFY THE FOLKS YOU WANT TO PLAY WITH RE THAT INCREDIBLY COOL IDEA YOU HAVE!
K2K!
SOOOO … HOW MANY OF YOUR COLLEAGUES ARE “BACK HOME” AT WORK ON NO BALONEY … WOW* PROJECTS!
* WOW = Will be remembered fondly/ bragged about
5+
years from now
Epitaph from Hell … Joe T. Jones 1942 - 2000 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
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” Source:
Fortune on “most admired
global corporations” (10/26/98)
T.T.D.: Now!
–
List all projects
–
Carefully describe a “WOW Outcome” for you and the Client
–
Score (!) all projects on WOW, Beauty, Impact, Raving Fan-hood
–
Pick one project with a high combined score
–
Draft a one-page New Description that emphasizes WOW, Beauty, etc.
–
Circulate and edit … for three days
–
Reduce to 5 bullet points
Notes Page
•
DO IT!
•
NOW!
[We are not trying to “WOW you up.” We think you are/have WOW.
We are trying to give you permission to be WOW.]
1) Turn ignition key.
2) Shift into drive.
3) Press foot firmly on the throat of mediocrity.
Source: Mercedes ad
Brand Inside Brand You: Distinct … or Extinct
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
Personal
“Brand Equity” Evaluation
– – – – –
I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing].
My current Project is challenging me … New things I’ve learned in the last 90 days include … My public “recognition program” consists of … Additions to my Rolodex in the last 90 days include …
–
My resume is
discernibly different
from last year’s at this time …
“You are the storyteller of your own life, and you can create your own legend or not.” Isabel Allende
T.T.D./Assignment Construct a 1/8-page or 1/4-page ad for Brand You … for the
Yellow Pages
Notes Page
•
THIS IS A BIG DEAL. TAKE IT SERIOUSLY
. [“Yellow Pages ads” are the centerpiece of our formal Brand You training programs.]
[
T.T.D.: How About It?
Replace your current evaluation process with Yellow Pages
ads.]
Notes Page
•
NO BULL! Some of our Clients have gone this far. And report stunning results. If you can’t do this formally, try it informally.
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment Strategy”/
R.I.P.
“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
T.T.D./Your R.I.P.
IS IT … FORMAL? IS IT ... WOW!?
Notes Page
•
We think “R.I.P.s” are imperative! So … please take these two questions seriously and literally!
T.T.D./R.I.P.
Use by yourself.
Use with your mates.
Use [quantitatively?] as a measure of departmental/ P.S.F. renewal.
Use in formal eval process.
Notes Page
•
The whole idea is to make “R.I.P.s” a/the centerpiece – formally – of measuring unit “freshness.” E.g.: SCORE EVERYONE’S “R.I.P.” ON ITS BOLDNESS/WOW.
Seminar Y2K/Brand Inside
Message: Distinct … or Extinct!
Bill Parcells’ World/ Brand You World!
BLAME NOBODY!
EXPECT NOTHING!
DO SOMETHING!
NY Post (9/99)
Women and new-economy management …
The New Economy … Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic
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 (5/2000)
“Boys are trained in a way that will make them irrelevant.” Phil Slater
Brand Inside Brand Talent: The Great War for Talent
Issue Y2K
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 market’s being divided up right now. We’re in a tough competition [with the U.S. and the U.K.] for the best brains.” Gerhard Schroeder, on Germany’s new tech immigration policy [Frankfurter Allgemeine/06.02.00]
Tomorrow’s Headlines “Molecular biologists are up 3 points, economists down 1/4 , in moderate trading” futureWEALTH, Stan Davis and Christopher Meyer
There is no “talent shortage” …
if
… you are a
GPTW*
*Great Place To Work
Alan Kay on PARC’s Bob Taylor
“He was a connoisseur of talent.”
Connoisseur of Talent Time!
Attitude > Skill Plain English!
Diversity!
Arts! [M.I.] Reward Talent!
D.I.Y.
Obsession!
Talent war, Web-speed!
Every resume or employment question that comes to Lucent via the Web gets answered in 30 minutes or less. [24/7.] Red Herring [06.00], on Lucent Director of Recruitment Jim Baughman
C.O.T. Redux “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
Axiom: Never hire anyone without an aberration in their background.
(Find the One Ton Cookie Man!)
“He grew his hair long, played guitar in a rock band, chased girls, got into trouble. At age 17 he was flogged by his house master, who described him as ‘the most difficult boy I’ve ever had to deal with.’ ”
Solution?
Slip Ritalin into his food …
Or …
Elect Him Prime Minister
Tony Blair*
*talk/May 2000
“Conformity is the enemy of freedom and the jailer of growth.”
J.F.K.
Yes! Director of Bringing in the Really Cool People
All You Need to Know?
Chief Evangelist For Really Neat Stuff Director Of Bringing In The Really Cool People
T.T.D.
STEAL THESE TWO JOB TITLES!
Talent = Brand
Brand Outside = Brand Inside
Brand inside
A BIAS FOR ACTION = No. 1
Bottom Line: The new metabolism!
S.A.V.
Net World!
Act now . Analyze later.
Avram Miller
[ TP to Chain Owner … “Do 5 deals before you go home!”]
“Steve Ross had a wonderful philosophy:
People get fired for not making mistakes.”
Bob Pittman
Fail. Forward. Fast.
High-tech exec
Ready.
Fire!
Aim.
Ross Perot, Wayne Calloway, Harry Quadracci, et al.
Reprise: Brand Inside
The White Collar Revolution & The Web
[90% poleaxed, CDO, Healtheon/WebMD, Buzzsaw.com]
PSF as Building Block
[Work Worth Paying For, Real Cool Purchasing Dudes]
Work Worth Paying For = WOW Projects!
Brand You
[Everybody!]
The Great War for Talent!
[Lookin’ for Dudes with ’tude] The New Metabolism
[Ready. Fire! Aim.]
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Forces @ Work II The Commodity Trap
In the Beginning … “The audit has become a commodity.” Big 5 audit partner to TP
Quality Not Enough!
“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.” J.D. Power
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
What’s Special?
“Customers will try ‘low cost providers’ because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst (10-98)
“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, coming up with similar ideas, producing similar similar prices and things, with similar quality.” Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
The “10X/10X Phenomenon”
10 Times Better/ 10 Times Less Different
“When we did it ‘right’ it was still pretty ordinary.”
Barry Gibbons on
“Nightmare No. 1”
Pretzel Crumb-less ness Plus … “The Ritz Carlton Experience enlivens the senses, instills well-being and fulfills even the unexpressed wishes and needs of the guest.” from the Ritz Carlton Credo
Nirvana!
- Nordstrom - Four Seasons - Adirondack Guide Boat - OXO Good Grips - Ziplocs - Power Point
Why?
Cool!/Surprising!
Reliable!
Friendly!/Comfortable!
Aesthetically pleasing!
Consider …
What words and emotions do you use to describe the things you love?
Context : “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Context : “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside Strategy
1
:
Lead
the Customer!
“The customer is a rear view mirror , not a guide to the future.” George Colony, Forrester Research “If you worship at the throne of the voice of the customer, you’ll get only incremental advances .” Joseph Morone, President, Bentley College
Early Customer Rejection Post-Its [12 years!] Chrysler Minivans VCRs Fax machines FedEx CNN Heart-assist pumps Etc.
Source: Fortune
Good = Bad/ 1 of 30,000 “We are crazy. We should do something when people say it is ‘crazy.’
If people say something is ‘good’, it means someone else is already doing it.”
Hajime Mitarai, Canon
“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
Amen!
“The Age of the
Never Satisfied Customer”
Regis McKenna
Context : “No” to “inevitable commoditization” S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside Strategy
2
: Use E-Commerce to
Re-invent
Business!
the
?????
$35,000,000.
Dell’s Web sales …
daily
2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)
Web World/05.00
1B pages/7B hotlinks/+1M per day “For the first time in history, people everywhere have access to the thoughts, products and writings of a large and growing percentage of earth’s population.” The New Yorker/05.29.00
Tomorrow Today: Cisco!
90% of $14.4B
(Cisco Connection ONLINE) Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting)
And Larry?
Service Call Center $300.00 per transaction to $1.50
Savings:
$550,000,000.00
Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B addnl this year]
B2B
1999 – 2004:
50X
2004: $7.4
T
Source: GartnerGroup (per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B) I.P.O.
B2B = No.1
CarStation (auto-body shops), ChemConnect (chemicals), Collabria (commercial printing), DigitalThink (corporate training), E-Steel (steel), Medibuy (medical supplies), Portera (knowledge workers), Etc., Etc., Etc., Etc.
Goal?
Drive profits to zero!*
*Remember AMR and “dynamic pricing.”
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
Welcome to
D.I.Y. Nation!
“Changes in business processes will emphasize self service. Your costs as a business go down and
perceived service
goes up because customers are conducting it themselves.” Ray Lane, Oracle
Psych 101: Strongest Force on Earth?
My need to be in perceived control of my universe!
Anne Busquet/ American Express Not : “Age of the Internet” Is:
“Age of Customer Control”
Shop in your Underwear
Source: SM’d logo for www.ae.com
ae = American Eagle Outfitters
The Supply Side … The Age of the Choiceboard The War of the Choiceboards Source: Adrian Slywotzky, HBR 1-2/2000 [<1%]
“In the network economy, the Website becomes the company’s primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post sales support all rolled into one.” Jakob Nielsen,
Designing Web Usability
“Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy.” Jakob Nielsen, Nielsen Norman Group
Red Herring (01/00)
75% of online shoppers don’t complete their purchase!
“Even if executives of established businesses grasp the impact of new technologies … they still face a massive competitive disadvantage precisely because they are incumbents. … They do complex financial calculations and get bogged down in internal political debates. Insurgents have no such inhibitions.” Philip Evans & Thomas Wurster,
Blown to Bits
“ … if they set up a completely independent organization and let that organization attack the parent.” Clayton Christensen,
The Innovator’s Dilemma
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.”
Jack Welch
“E-business is the final nail in the coffin for bureaucracy at GE.”
Jack Welch/ GE Annual Report 2000
[ Words to Live By … “Hierarchy is an organization with its face toward the CEO and its ass toward the customer.” Kjell Nordstrom and Jonas Ridderstrale,
Funky Business]
There are 2 Kinds of … Defense* vs.
Offense** *Fend off upstarts.
**
Reinvent our marketspace!
No
Room for “Competent”* Sorts Beer Wholesalers Personal Trainers [FitLinxx] Financial Planners Car Dealers * LVA, “M”VA … vs.
HVA [Web-enhanced]
Web Strategy: GE Power Systems
“Launch and Learn”
(4 sites in 30 days)
“It’s better to be first with less than last with more. Success on the Web isn’t just about time to market, it’s also about
‘time to learning.’
” Jeff Levy, eHatchery
Jargon Bath!
Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.
Translation … Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain tightly wired/ friction free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever “Instantly” responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements
And Stuff Like … “For a dollar a month, an Ohio insurance company will rent you a GPS receiver to install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which neighborhoods you go. The premium you pay reflects your actual driving risk.” Stan Davis & Christopher Meyer,
futureWEALTH
Context : “No” to “inevitable commoditization” S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule!
(and the elderly) S4: Design Rules! (too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside Strategy
3
:
Women
Rule!
?????????
Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.
$3.3T + $1.5T = $4.8T* * Larger than Japan!
Most Under-reported story!
9M*/28M(1 of 4)/$3.6T [> Germany]
* 400K in ’72; 132% since ’92 Sources: NFWBO, Cognetics, Business Wire (030600)
48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed
Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education.
Source: Business Week (11-99)
New golfers … 37% Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap 1977 … Jogbra 1977 ... 25K 1996 … 42
M
Yeow!
1970 … 1%
2000 … 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.”
Women and Healthcare Women are … more dissatisfied, frustrated by the way they are treated
and spoken down to
by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $$$$ [and constitute 2/3 of health care employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors Women want listened to, … a plan, to be to be taken seriously , to read about it, to think about it.
Women do not want … an in-your-face sales pitch Source: Kathleen Boyle, Wheat Boyle Butcher Singer
How Many Gigs You Got, Man?
“Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their vendor.” Robin Sternbergh/ IBM
Q: Why do guys like pagers?
A1: Sense of importance [Pager Dude]
A2
: Cubicle Slaves’ replacement for “real guys” tool belts
Q: Why do women like pagers?
A: Get the news A.S.A.P. if her child is in the Nurse’s Office Q:Why do women hate pagers?
A: They find nothing romantic about wearing a Stetson wrench or Stanley hammer attached to their waist! [Note the pager’s clip-on device … guys ]
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
Weight Watchers International “Model” “What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?” “What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re enter the workforce with today’s skills?”
EVEolution
EVEolution: Truth No. 2
If You’re Marketing to One of Her Lives, You’re Missing All the Others
E.g. … “Office Depot could become Life Depot, offering a selection of last minute items for the hard-pressed female business owner.” “Weight Watchers could extend out to Family Weight Watchers.”
EVEolution
Not!!
“Year of the Woman”
Enterprise Reinvention!
Recruiting Hiring/Rewarding/ Promoting Structure Processes Measurement Strategy Culture Vision Leadership
THE BRAND ITSELF!
“What kind of car does Mommy want?”
“I didn’t know [company] were giving company cars to secretaries.” Source: UK financial services CEO, 12/99
27 March 2000: email to TP from Shelley Rae Norbeck “I make 1/3 rd 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!”
Not a Morality Play!
“It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We are marketing to women entrepreneurs because it is a huge opportunity.” Cherie Piebes
Wanna see my “porn” collection?
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS SEMINAR. PLEASE: THINK ABOUT IT!
“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
Speaking of Enormous [Missed] [Huge] Opportunities ...
74/55 “At each stage of their lives, the needs and desires of the baby boomers have become the dominant concerns of American business and popular culture. If you can anticipate the movement of the baby-boom generation’s life-span migration, you can see the future.” Ken Dychtwald, Age Wave
Aging/“Elderly”
2X growth rate $$$$$$$$$$$$
“I’m in charge!”
Good source: Ken Dychtwald,
Age Wave
Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access …
Respect!
Context : “No” to “inevitable commoditization” S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules!
(too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside Strategy
4
:
Design
Rules!
And Tomorrow … “Fifteen years ago companies competed on price. Now It’s quality.
Tomorrow it’s design.”
Robert Hayes
All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.
Design is the only thing that differentiates one product from another in the marketplace.”
Norio Ogha
Design as Soul “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul man made creation.” of a Steve Jobs
The I.D. [International Design] Forty* Airstream … Alfred A. Knopf … Apple Computer … Amazon.com
… Bloomberg Disney … … Caterpillar … FedEx CNN … … Gillette … IBM … Martha Stewart … New Balance … Nickelodeon … Patagonia … York Yankees The New … 3M … Etc. * List No. 1, 1999
Unconventional [Design] Messages
Not
about ... “Lumpy Objects”!
Not about ... $79,000 objects
T.T.D./Message: Services are Not Intangible!
You “give off” hundreds of design cues … daily!
YOU ARE A DESIGNER!
Notes Page
•
List 100 [!] “design cues” that you give off! [Okay, start with 25.]
Graceful language!
T.T.D./“Beauty Contest!” 1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim form.
2. Rate it on a 1 to 10 scale (1 = Awful; 10 = Scintillating) on three dimensions:
Beauty, Grace, Clarity
.
3. Repeat … every 15 days.
Notes Page
•
DO THIS! USE MY TERMS! [Beauty … Grace … Clarity.] Be quantitative. [PLEASE.]
T.T.D./Design “Awareness”!
STEP No. 1:
NOTEBOOK!
[Start recording the awesome and the awful.]
Notes Page
•
THIS IS MY “SECRET.” I am not “artistic.” But … I did teach myself to be … CONSTANTLY AWARE. The Key: My [simple] notebook! [I’VE NOW BEEN “RECORDING” FOR ALMOST TEN YEARS!]
Context : “No” to “inevitable commoditization” S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly) S4: Design Rules! (too)
S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside Strategy
5
: It’s the
Experience!
“Experiences are as distinct from services as services are from goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater & 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
“Car designers need to create a
story
. Every car provides an opportunity to create an
adventure
. … “The Prowler makes you
smile
Because it’s
focused
. It has a . Why?
plot
, a reason for being, a
passion
.” Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
Story Adventure Smile Focus
Plot
Passion
[Plot Williams Sonoma = 6 [was 10] Crate & Barrel = 8 Sharper Image = 9+ Smith & Hawken = 8+ Vermont Country Store = 8+ Garnet Hill = 9 L.L. Bean = 5 [was 9+] Land’s End = 7+
Colonial Williamsburg = ?]
And Now For A Nod To 1/7
th
of Our Economy!
“Medicine looks likely to change more in the next 20 years than it has in the last 200.” British Medical Journal (11-11-99)
Health Care Tsunami Prevention/Wellness/Fitness
Proactive Engineering/Gene “stuff”[Blockbuster-Bazooka to Specific Sniper’s Rifle]
Holistic/Homeopathic/Non-traditional
Patient-centric/Web-led
No waste [Healtheon/WebMD et al.]
Etc.
TP 03.26.00: AMA Riff
Are You Fighting Yesterday’s War?
Docs don’t know it all. There are a lotta bad docs. There are a lotta bad medical decisions. “Hospitals” kill far too many people.
(Bad decisions, bad execution.)
Systemic waste is stratospheric.
(Still.)
Patients are getting
(much)
smarter.
Patients have had it with HMOs. (And Docs with the “white-coat syndrome.”) You are not smarter than I am.
(I am your partner.)
You are not busier than I am.
(!!!!!)
Patients want more data.
(And can readily get it.)
Boomers will control their lives. Period. Medicine is about to be overwhelmed with a tsunami!
Confusing Message* Traditional indemnity: 37% to 11% [’94-’99; 77% in ’88] HMO: 23% to 30% PPO: 25% to 43% *Cut the waste & provide choice
Alternative Medicine More visits than to physicians Same $$$ expenditure [approx $27B] Stanford study: 2/3 use alt therapies “This is the first time in Western medical history that we have had a movement that is consumer driven.”/Dr. Woody Merrell, Center for Health and Healing, Beth Israel Hospital, Manhattan. [Merrell: Process = Partnership.] Source: Barron’s/05.15
SoftWatch (MS) “Manage relationships across the healthcare continuum”/ Amir Kishon Establish e-relationships with customers/retain customers/collect data Patients record info + receive feedback/ online access to nurses Community with others with MS Etc.
Source: Start-Up
1965 : “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.” YES, NURSE. ME GOOD PUPPY DOG.
1995 : “HMO will take care of you.” BULLSHIT.
2005 : “I will take care of me. I’d like your expert help.”* [ *P.S.: THE VIAGRA, ETC.] I ORDERED ONLINE IS GREAT.]
Patient-centric* Health Care Wellness (Fix to prevent.) Partnership (“Tour guide” model.) RESPECT! (Mutual.)
WOMEN RULE!
*Not: HMO-centric, Employer-centric, Insurer-centric, Doc-centric
Reprise: Dawn of an Age of Self Determination? E.g. …
Brand You
[end of corporate paternalism]
D.I.Y.
Boomers
[the Internet] [“I’m in charge here!”]
Health
[“I’m in charge here!”]
“IT enables total transparency. People with access to relevant information are beginning to challenge any type of authority.
The stupid, loyal and humble customer, employee, patient or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Context : “No” to “inevitable commoditization” S1: Lead the Customer!
S2: Master e-commerce!
S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
BRAND
POWER!
Brand It!
Now, More Than Ever!
“The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the
rise and rise of the brand.”
Gillian Law and Nick Grant, Management [New Zealand]
No Room for Brands?
Nike Saturn CNN America Online Charles Schwab Starbucks The Gap Intel Etc.
Brand = Trust!
“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”
The Economist
What Can [Can’t] Be Branded?
“Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they can do it, we can do it.’ ” Barry Gibbons
“Salt is salt is salt. Right? Not when it comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf.” Tom Asaker, Humanfactor Marketing
T.T.D./Calling the Corporate Shrink!
“Organizational Psychotherapy”/
WHO WE ARE!
Notes Page
•
This is The Big Enchilada:
SPEND
– lotsa –
TIME ON IT!
Scott Bedbury/ Nike, Starbucks “A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an
emotional connecting point
that transcends the product.
“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that
connects with something very deep - a fundamental appreciation of mythology
.
Stories create the emotional context people need to locate themselves in a larger experience.”
Brand = You Must Care!
“Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.” Tom Chappell, Tom’s of Maine
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re inventing a company (Exemplar #1: Charles Schwab)
“In the funky village, real competition no longer revolves around marketshare. We are competing for attention –
mindshare and heartshare.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and diversity, choices become increasingly informed by belief.
[Consumers] want to know who is behind the products that they buy. They want to know the company. They want to know what you think.”
Jesper Kunde, Corporate Religion
Brand = Special = Passion = Plot Compelling = Mythology = Cause Connection = Caring =
T.T.D./Assignment Y2K
Write an essay on “Who we are.”*
* Jesper Kunde, Corporate Religion
Notes Page
•
DO IT!
500 words.
•
[And then:
10 words.]
Brand Outside Reprise
Context : “No” to “inevitable commoditization” S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly) S4: Design Rules! (too) S5 : It’s the Experience!
Net: Glorious Age of the BRAND!
[“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte]
Lead the Customer: Why Tough
Guts!
Failures!
Re-invention via ecommerce: Why Tough Total commitment to total enterprise [and supply chain] reinvention!
Yo, C.
D
.O.!!!!!!!!
Women’s Market: Why Tough
Encompassing Attitude CULTURAL!
Design: Why Tough True-believer-dom-ship Encompassing/Cultural
Ing-ing/Experience: Why Tough
What’s the Plot?/Total Reorientation
Brand Power: Why Tough Way of Life Forever!
Passion Rules!
Touches Everything!
It Am Me [Personal!]
Message :
Not for the Faint of Heart!*
*Weenies need not apply
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Brand Leadership Passion Rules!
Brand Leadership!
“A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner
Leading Minds: An Anatomy of Leadership
“Leadership is a performance.
You have to be conscious of your behavior, because everybody else is.” Carly Fiorina
“The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in recruits.” Burke Stinson, AT&T
Brand Leadership: ENTHUSIASM RULES!
“I am a dispenser of enthusiasm”/ Ben Zander
Talent “War,” Marketplace “War” “The successful company has to create an environment that imbues its employees with a sense of passion.” Joe Nocera, eCompany, on David Pottruck
Sunshine …
even if it kills you!
“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
“The deepest human need is the ...
NEED TO BE APPRECIATED
.”
William James
Ann Richards’ Dogma Show up!
Know your message!
PUT YOURSELF AT RISK EVERY DAY!
“If things seem under control, you’re just not going fast enough.”
Mario Andretti