Transcript 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000 When Mike Charles gets lonely, who does he talk to …

2000 SC Johnson
Global Forum
Honoring Our Heritage/
Mastering Our Future
Hong Kong
17October2000
When Mike Charles
gets lonely, who
does he talk to …
Mike Charles. Stanford history prof.
Whirlpool fridge. Out of 2%
milk. Tap keypad on door.
Webvan.com delivers in
hours. Next, he sends his
washer an email …
Source: Business Week (09.00)
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)
NOW THAT’S B-I-G!
“The period 2000-2002 will bring
the single greatest change in
worldwide economic and
business conditions since we
came down from the trees.”
David Schneider & Grady Means,
MetaCapitalism
“The corporation as we know it,
which is now 120 years old, is
not likely to survive the
next 25 years. Legally and
financially, yes, but not
structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
“We are in a
brawl with no
rules.”
Paul Allaire
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge
customers on the attack.
2. Time cannot be sacrificed for better quality,
lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire
leading technology. Our job is to provide the technology
and products our customers need.
4. Success is achieved by leading change,
not waiting for it.
5. We are paranoid about our leadership – willing to
cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
Progressive
“We don’t sell insurance anymore.
We sell speed.” – Peter Lewis
Digital cameras, wireless Net links,
etc.: SOME CLAIMS PAID
WITHIN 20 MINUTES!
Source: Business Week (09.00)
Tom Peters
Seminar2000
Brand Everything:
Distinct or Extinct!
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org:
Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut
… 10,000 Jobs”
“Middle-level and senior
managers are expected to be
the principal targets of the job
cutbacks.”
Source: The New York Times (07.29.2000)
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!!
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
Cisco, Dell =
Brand-owning companies
who sell Customer
Satisfaction
Source: David Schneider & Grady Means,
MetaCapitalism
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.”
Advance Paradigm
Data on 165,000,000 prescriptions per
year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per
scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98
Source: Business Week (09.00)
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
So what will be the
Basic Building
Block of the
New Org?
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
The Raw Material …
The WOW
Project!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
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
Minimum New Work SurvivalSkillsKit2000
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Finishing Skills
Entrepreneurial Instinct
CEO/Leader/Businessperson
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Invent. Reinvent. Repeat.
Source: HP banner ad
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
“Seller’s Market”: Tomorrow’s Headline*
“Molecular biologists are
up 3 points, economists
down 1/4, in
moderate trading”
*futureWEALTH, Stan Davis and
Christopher Meyer
From “1, 2 or 3” [JW] to …
“Best talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
Home Depot: 7 new growth initiatives
($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN
THE WORLD TO HEAD EACH
INITIATIVE
E.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia Pacific
profitability from $25 million to $80 million in 2
years.”
Ed Michaels, War for Talent (05.17.00)
“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)
“Talented people are less likely
to wait their turn. We used to
view young people as trainees;
now they are authorities. Arguably
this is the first time the older generation
can – and must – leverage the younger
generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
“Where do good new ideas come
from? That’s simple! From
differences. Creativity comes
from unlikely juxtapositions.
The best way to maximize differences
is to mix ages, cultures and
disciplines.”
Nicholas Negroponte
“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
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
Women and neweconomy
management …
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more
questions in a conversation? Who is a better
listener? Who has more interest in communication
skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who
has better intuition? Who works with a longer ‘to do’
list? Who enjoys a recap to the day’s events?
Who is better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful
Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Boys are trained in
a way that will make
them irrelevant.”
Phil Slater
“Tomorrow
belongs to
women.”
Helen Fisher, The First Sex: The Natural
Talents of Women and How They Are
Changing the World
Mantra2000
Talent = Brand
Brand Inside
Brand Action:
Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
THE IDEA
“4Fs”: Find a Fellow
Freak Faraway
Heart of the Matter
F2F!*
*Freak to Freak …
or K2K [Kook to Kook]
World’s Biggest Waste …
Selling “Up”
BOTTOM LINE
The Enemy!
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
Characteristics of the “Also Rans”
“minimize risk”
“respect the chain of command”
“support the boss”
“make budget”
Source: Fortune on “most admired
global corporations”
N.W.O.: Was-Is
•
•
•
•
•
•
•
Pine-paneled Office
•
Address: 1 Big Man Plaza •
Secretary
•
Suit
•
Formal
•
Rank conscious
•
Pretense (“Failures are •
for fools.”)
•
• I love “Yes men”
•
• Self-contained
Seat 9B, UA233
Address: [email protected]
Typing: 60 WPM
Casual M-F
Approachable
We are a HOT Team
Screwing up is as normal
as breathing
I love Misfits!
I love partners
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Outside
The Death Knell
for Ordinary:
Pursuing
Difference!
“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
The “10X/10X
Phenomenon”
10 Times Better/
10 Times Less Different
Brand Outside
Strategy 1:
Lead the Customer!
“These days, you can’t succeed as a
company if you’re consumer led –
because in a world so full of so much
constant change, consumers can’t
anticipate the next big thing.
Companies should be idealed and consumerinformed.”
Doug Atkin, partner,Merkley Newman Harty
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
Brand Outside
Strategy 2:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.30.2000/1221AM:
2,461,940,629
www.cyveillance.com
10.15.2000/0217AM:
2,797,588,916
46 days, 1 hour, 56 minutes …
+335,648,287
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders
routed to supplier who ships direct
Gross margin:65%; Net margin: 28%
Savings in service and support from
customer self-management: $500M
COMMUNITY
SERVICES!/
CUSTOMER
CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
Welcome to
D.I.Y. Nation!
“Changes in business processes will
emphasize self service. Your costs as
a business go down and
perceived service goes up
because customers are conducting it
themselves.”
Ray Lane, Oracle
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Shop in your
Underwear
Source: SM’d logo for www.ae.com
ae = American Eagle Outfitters
RADICAL
STRATEGIES
REQUIRED
“One cannot be tentative
about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t
ready’ cannot be allowed. Delay and
you risk being cut out of your own
market, perhaps not by traditional
competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
SUMMARY:
REINVENT
EVERYTHING
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: eCommerce
is not a
technology play! It is a
relationship, partnership,
organizational and
communications play, made
possible by new
technologies.
Message: There
is no such
thing as an effective B2B or
Internet-supply chain
strategy in a low-trust,
bottleneckedcommunication, six-layer
organization.
A DREAMER’S
MEDIUM!
“There is no use trying,” said Alice.
“One can’t believe impossible things.”
“I daresay you haven’t had much
practice,” said the Queen. “When I was
your age, I always did it for half an
hour a day. Why, sometimes I’ve
believed as many as six impossible
things before breakfast.”
Lewis Carroll
I’net …
allows you to
dream dreams you
could never have
imagined before!
…
Brand Outside
Strategy 3:
Fighting Back via
Systems Integration!
THE CASE
GM/Ford/DaimlerChrysler (02-27)
Covisint
$240B (+$500B)
I.P.O.
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
Message: “BOX”
SELLERS LOSE!
THE RESPONSE
Message: Racing up the V.A.
Ladder. Doing More & More
… & More & More & More …
for/with the Customer and
the Supply-Demand Chain!
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting bus!
(31,000 bods)
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
E.g. …
UTC/Otis + Carrier:
boxes to “integrated
building systems”
Brand Outside
Strategy 4:
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
Lady Sensor, Mach3, and …
$70M on developing the
OralB CrossAction toothbrush
23 patents, including 6 for the
packaging
Source: www.ecompany.com [06.00]
TARGET … “the champion
of America’s new design
democracy” (Time)
Design “is” … WHAT &
WHY I LOVE.
LOVE.
Design “is” … WHY I
GET MAD.
MAD.
Design is never
neutral.
B-I-G …
DESIGN is the principal
difference between love and
hate!
hypothesis:
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
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.
Why? Because it’s focused. It has a
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 = ?
Brand Outside
Strategy 6:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 80%
Consumer Electronics … 51%
Cars … 50%+/80%
Etc.
(!!!)
Women … 50+%
of Web
users; 6 of 10 new users; 83%
of wired women are primary
decision makers for family
healthcare, finances,
education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!
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!)
Marketing to Women: Help Them
Save Time!
80% … work
86% … cook
58% … run errands with kids
38% … take child to school
21% … go to the gym
21% … take outside classes
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
“Women don’t buy
brands. They
join them.”
Faith Popcorn, EVEolution
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?”
“Excuse me,
doctor, but it’s
my neck that’s
in pain!”
THIS JUST MIGHT
BE THE BIGGEST
“THING” IN THIS
SEMINAR. [PLEASE:
THINK ABOUT 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
Speaking of
Enormous
[Missed] [Huge]
Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44,
stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is
stupid, stupid!
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
“Such a critical mass of
older women with a tradition
of rebellion and
independence and a way of
making a living has not
occurred before in history.”
Gerda Lerner, historian
Brand Outside
Strategy 7:
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]
“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 that
to how we work with others.
their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
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
“Create a Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander