Transcript Document 7107964

Why Are
We Here?
Tom Peters/ spbt/
Toronto/ 06.17.2002
Q: Why are we
here?
A/TP: I am
increasingly
unclear.
All Slides Available at …
tompeters.com
Note: Lavender text in this file is a link.
Brown.
Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling
‘goods’ to selling ‘home services.’ …
He wants to capture home
improvement dollars wherever and
however they are spent.”
E.g.: “house calls” (At-Home Service: $10B by ’05?) …
“pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling
relationship”).
Source: USA Today/06.14.2002
One person’s
opinion …
Sorry, Elliott/spbt … the issue is
not the delivery of training. The
issue is …
training
for WHAT!
Issue #1:
NOT … “How to do what we do
better.”
“What the hell
should we be
doing?*
IS …
*I am convinced that both your content and field processes are all screwed up.
From: “We are pill peddlers.”
To: “We are providers of ‘Integrated,
demonstrable health- &
wellness-enhancing outcomes’
… in partnership with … CMOs, HMOs,
state AGs & Govs, Patients, docs … of
which pills may or may not be a/the
central part.”
E.g.: Should we … abolish drug co.
salesforces? And replace them with
… Integrated Marketing
Services/ Solutions Teams that
(1) focus on outcomes, (2) include
“sales,” “marketing,” “drug discovery
process teams,” and various
outsiders?
“No longer are we only an
insurance provider. Today,
we also offer our customers the
products and services that help them
achieve their dreams, whether it’s
financial security, buying a car, paying
for home repairs, or even taking a
dream vacation.”—Martin Feinstein, CEO,
Farmers Group
The Future of Healthcare:
Whoops I
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms!
Current status: $1.3T. 30M-70M uninsured. 90K
killed and 2M injured p.a. in hospitals. 85%
treatments unproven. Cure depends on locale in
which treated. 50% prescriptions do not work.
2X docs. 2X hospitals. IS primitive.
Accountability & measurement nil.
And everybody’s mad and feels powerless:
docs, patients, nurses, insurers, employers,
pharma & device cos, hospital administrators
and staff.
The Future of Reps:
Whoops II
“Consultative selling
requires dialogue … and
the time for that dialogue.
Unfortunately, this seldom
happens in today’s hurry-up
complex world of
pharmaceutical selling.”—
newspost/spbt
Study of 500 Reps*: 65% “had
face-to-face conversation with the
physician for less than
30 seconds per visit. In fact,
more than half of the 65%
admitted that the average time is
less than 15 seconds.”
*Holy shit!
Source: newspost
“Research reveals no
evidence of overall superior
selling behavior related to
experience beyond
five years. Quite the
opposite …”—newspost/spbt
“So, tell
me about
reps …
TP/06.2002:
Pediatric cardiologist & practice head: “I
don’t see them, period. I study, write
papers, use the Web, attend a minimum of
4 or 5 major conferences a year. My staff
may see them, but I in general find their
views uselessly prejudiced. Call it, I’m
afraid to say, ‘hucksterism.’ If I want
anything at all from them, it’s
thoughtfulness—good luck!”
Urologist & Practice Head: “A few
of them—a very few—are
excellent. The good ones are selfdeprecating. If their product is not
all that great, they’ll admit it.
Mostly, it’s a waste of my time. I let
the staff handle it.”
Family Practice Office Administrator (3 Docs, Midsize town)
TP: “How often does Dr. X see Reps?”
PA: “He doesn’t.” [Emphatic.]
TP: “That was sharp in tone! Why?”
PA: “We used to set aside a two-hour block,
once a month. But a lot of the Reps missed
appointments. That, however, was the least of it.
The biggest problems were the Reps who kept
pushing the same thing, visit after visit. They
had absolutely nothing new to say.”
TP: “So how does Doc X keep up?”
PA: “The Internet.” [T.O.V. = “What else?”]
Internist (Silicon Valley): “The Web is
generally better. I spent a year of
painstaking study, and now I have a
system that keeps me informed in a
‘push’ fashion. I began as a skeptic,
harassed by a few of my techie
patients—and I’ve become a ‘believer’
and proselytizer. Now I find myself
haranguing other doctors.”
Oncologist (Urban Med Center):
“They are, or can be, helpful to the
two-thirds of docs, to be frank, who
don’t study much. I’ve got one or
two I’ll call, but otherwise I’m ‘not
available.’ Quiet study, and
increasingly the Internet, are my
tools of renewal.”
Pharmaceutical exec: “Truthfully,
we hire attractive women as much
as we can get away with. That plus
pens are huge influencers—it’s
what our focus groups tell us.” (The
“attractive young women” theme was a constant
refrain. “I find it laughable, to a point,” a female M.D.
told me. “What I fear is that it works.”)
ER doc/exec: “It’s pathetic. The docs
are half assed in their learning styles.
Most don’t even pretend they are
keeping up. Reps? She who has the
best pens wins. Health care is out of
control—and laughably unscientific.
Whatever your nightmare stories are,
Tom, trust me and my 25 years of
experience, the reality is far worse.”
Plastic surgeon & practice head: “My practice
has changed 100% in the last 10 years. Sadly,
that’s not true for three-quarters of my
colleagues. Information technology is a big part
of it. It’s extremely user-unfriendly. It took me
and my partners and office staff a year to
customize our approach—and as we did so the
role of the reps became less and less important.
I won’t even let our staff schedule time with
them. It’s inefficient, and most of them are
humorously biased—and insult us by imagining
it’s not transparent. I’m not complaining—
but,fact is, I’m busy.”
My voyage: (1) “Hey, I’ll do TP’s
eLearning pitch.” (Not as good as
Masie’s.) (2) “Why do docs waste
time with reps? Isn’t the Web the
answer?” (A: Docs don’t waste time/much
time with reps.) (3) “Hey, the
fundamental concept of the selling
relationship may be all bollixed
up.” (Hmmmmm …)
Health Care Embraces
Modern IT and
Management Practice
… Maybe.
Any Idiot’s
Conclusion: The
System Is
Busted.
(And: You are part of the system
… not spectators from the “priviledged drug co.s”)
“We’re in the Internet
age, and the average
patient can’t email
their doctor.”
Donald Berwick, Harvard Med School
Want email consultation: 90%
patients, 15% docs.
Evidence: Patients do not
pester docs. Time is saved. No
one has sued (shows “care & connection”—
the absence of which is the major cause
of suits).
Source: New York Times/06.06.02
“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
“A healthcare delivery system
characterized by idiosyncratic
and often ill-informed
judgments must be restructured
according to evidence-
based medical practice.”
Demanding Medical Excellence: Doctors and Accountability in
the Information Age, Michael Millenson
“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
“Quality of care is
the problem, not
managed care.”
Institute of Medicine (from Michael Millenson,
Demanding Medical Excellence)
RAND(1998): 50%,
appropriate
preventive care. 60%,
recommended treatment, per
medical studies, for chronic
conditions. 20%, chronic care
treatment that is wrong. 30%
acute care treatment that is
wrong.
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
1,000,000
“serious
medication errors per year” …
“illegible handwriting, misplaced
decimal points, and missed drug
interactions and allergies.”
Source: Wall Street Journal/ Institute of Medicine
Various studies: 1 in 3,
1 in 5, 1 in 7, 1 in 20
patients “harmed by
treatment”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
RAND (1998): 50%,
appropriate
preventive care. 60%,
recommended treatment, per
medical studies, for chronic
conditions. 20%, chronic care
treatment that is wrong. 30%
acute care treatment that is
wrong.
YE GADS!
New England Journal of Medicine/
Harvard Medical Practice Study: 4% error rate (1 of 4
negligence). “Subsequent investigations around the
country have confirmed the ubiquity of error.” “In one
small study of how clinicians perform when patients
have a sudden cardiac arrest, 27 of 30 clinicians made
an error in using the defibrillator.” Mistakes in
administering drugs (1995 study) “average once every
hospital admission.” “Lucian Leape, medicine’s
leading expert on error, points out that many other
industries—whether the task is manufacturing
semiconductors or serving customers at the Ritz
Carlton—simply wouldn’t countenance error rates like
those in hospitals.”—Complications, Atul Gawande
“Established state-of-theart cancer care—about
which there is no
longer any debate—is
erratically applied.”
Source: Institute of Medicine’s
National Cancer Policy Board
“In a disturbing 1991 study, 110
nurses of varying experience levels
took a written test of their ability to
calculate medication doses. Eight out
of 10 made calculation mistakes at
least 10% of the time, while four out
of 10 made mistakes 30 % of
the time.”
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
Geography Is Destiny
E.g.: Ft. Myers 4X Manhattan—back
surgery. Newark 2X New Haven—
prostatectomy. Rapid City SD 34X Elyria
OH—breast-conserving surgery. VT, ME,
IA: 3X differences in hysterectomy by age
70; 8X tonsillectomy; 4X prostatectomy
(10X Baton Rouge vs. Binghampton).
Breast cancer screening: 4X NE, FL, MI
vs. SE, SW. (Source: various)
Geography Is Destiny
“Often all one must do to acquire a disease is
to enter a country where a disease is
recognized—leaving the country will either
cure the malady or turn it into something else.
… Blood pressure considered treatably high in
the United States might be considered normal
in England; and the low blood pressure treated
with 85 drugs as well as hydrotherapy and spa
treatments in Germany would entitle its
sufferer to lower life insurance rates in the
United States.” —Lynn Payer, Medicine & Culture
It’s
outcomes,
stupid!
(measurable, systemic)
“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
Leapfrog Group/med errors: “Not
since Jackson Hole Group guru
Paul Ellwood, Jr., M.D., coined the
term ‘HMO’ in 1970 has one idea so
fully captured the imagination of
the healthcare industry.”—
HealthLeaders/06.2002
Leapfrog Group:
CPOE/Computerized Physician
Order Entry*
ICU staffing by trained
intensivists**
EHR/Evidence-based Hospital
Referral***
*Duh I: Welcome to the computer age.
**Duh II: How about using experts?
***Duh III: If you do stuff a lotta times, you tend to get/be better.
Source: HealthLeaders/06.2002
Empire Blue Cross and Blue
4% quarterly
bonus for hospitals that
Shield:
meet Leapfrog’s CPOE and
ICU-staffing standards.
Source: HealthLeaders/06.2002
The Benefits of …
FOCUSED EXCELLENCE
Shouldice/Hernia Repair:
30-45 min, 1% recurrence.
Avg: 90 min, 10%-15%
recurrence.
Source: Complications, Atul Gawande
The VHA gets it!
E.g.: Laptop at bedside calls
up patient e-records from one of 1,300 hospitals. Barcoded wristband confirms meds. National Center for
Patient Safety in Ann Arbor. Docs and researchers
discuss optimal treatment regimens—research center
in Durham NC. Doc measures & guidelines; e.g.,
pneumonia vaccinations from 50% to 84%. Blamefree system, modeled after airlines. “What’s needed
in the U.S. is nothing short of a medical revolution and
the VHA has gone further than most any other
organization to revamp its culture and systems.”—
Rand/Source:WSJ 12.10.2001
Computerized Physician Order
Entry/CPOE:
5%
hospitals
source: HealthLeaders/06.02
of U.S.
Winning By Acknowledging Failures
Wernher Von Braun, the Redstone
missile engineer who “confessed” &
the bottle of champagne. Award to the
sailor on the Carl Vinson—for
reporting the lost tool. Amy Edmonson
& the successful nursing units with the
highest reported adverse drug events.
Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected
PARADOX: Many, many
formal case reviews …
failure to systematically/
systemically/ statistically
look at and act on evidence.
C.f., Complications, Atul Gawande
Message: (1) Effective &
is
encompassing use of IT
the
healthcare revolution. (2) Get on
all-the-way on board or get
discarded.
(3) The situation as
it stands is pathetic.
We hate
change!
Whose motto*:
*Choices: AMA, AHA. Both
Tom’s
World
NEW
BUSINESS.
NEW
CONTEXT.
All Bets Are Off.
“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
Way to Go, Guys …
2002 write downs
from recent
acquisitions …
$1,000,
000,000,
000*
*$1 trillion (Source: Harper’s Index 04.2002)
The
Destruction
Imperative.
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100
“survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak,
outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957
to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why
Companies That Are Built to Last Underperform the Market
“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
“When asked to name just one big merger
that had lived up to expectations, Leon
Cooperman, former cochairman of
Goldman Sachs’ Investment Policy
I’m sure
there are success stories
out there, but at this
moment I draw a blank.”
Committee, answered:
Mark Sirower, The Synergy Trap
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
The [New] Ge Way
DYB.com
“Change the
rules before
somebody else
does.”
—Ralph Seferian, VP, Oracle
“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
Axiom (Hypothesis): We have
been screwed by Benchmarking
… Best Practice … C.I./Kaizen.
Axiom (Hypothesis): We need
Masters of Discontinuity/
Masters of Ambiguity … in
discontinuous/ambiguous
times.
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work
well for about half the patients for whom they are
prescribed, and experts believe genetic
differences are part of the reason. The
technology for genetic testing is now in use. But
the technique threatens to be so disruptive to the
business of big drug companies – it could limit
the market for some of their blockbuster
products – that many of them are resisting its
widespread use.”
The Wall Street Journal (06.18.2001)
“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)
Pharmacogenomics: End of Blockbusters
by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re
moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for
the industry. The implications for existing
business models are devastating.” Allen Roses,
SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences,
PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble
and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
NEW BUSINESS:
NEW TECH
IBM’s Project
eLiza!*
* “Self-bootstrapping”/ “Artilects”
Deep Blue Redux*: 2,240
EKGs
… 1,120 heart attacks.
Hans Ohlin
: 620.
Lars Edenbrandt’s
software: 738.
(50 yr old chief of coronary care, Univ of
Lund/SW)
*Only this time it matters!
“Most physicians believe that
diagnosis can’t be reduced to a set of
generalizations—to a ‘cookbook.’ …
How often does my intuition lead me
astray? The radical implication of the
Swedish study is that the
individualized, intuitive approach that
lies at the center of modern medicine
is flawed—it causes more mistakes
than it prevents.” —Atul Gawande, Complications
“Unless mankind redesigns
itself by changing our DNA
through altering our genetic
makeup, computergenerated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
IS/IT/Web …
“On the Bus” or
“Off the Bus.”
square feet
Impact No. 1/ Logistics &
Wal*Mart …
Dell … Amazon.com …
Autobytel.com …
FedEx … UPS … Ryder
… Cisco … Etc. … Etc.
… Ad Infinitum.
Distribution:
$400.
Wal*Mart: 13%.
Autobytel:
Source: BW(05.13.2002)
WebWorld = Everything
Web as a way to run your business’s innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth,
bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
“Ebusiness is about rebuilding
the organization from the
ground up. Most companies today
are not built to exploit the Internet.
Their business processes, their
approvals, their hierarchies, the
number of people they employ … all of
that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
“There’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!
…
HUMANA’s Dreams. Emphesys: “Put everything
on the Internet.” CEO Mike McCallister, charge to
200-person “outside” I’net unit: “Imagine an
ideal Web-based health insurance system and
then create a product as close as possible to
that vision.” Start with own employees:
SmartSuite. Member employees: “Plan their
own coverage and shoulder more costs.” Dell
is model: “Fully customized health for every
individual.” Marketing pitch for employers:
“Buy choice for employees through a single
source—Humana.”
Source: Fortune/05.27.2002
“Suppose—just suppose—that the Web is a new world
we’re just beginning to inhabit. We’re like the earlier
European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we
don’t know exactly what we need to do to find out: Do
we pack mountain climbing gear, desert wear, canoes,
or all three? Of course while the settlers may not have
known what the geography of the New World was
going to be, they at least knew that there was a
geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It has
nothing natural in it. It has few rules of behavior and
fewer lines of authority. Common sense doesn’t hold
here, and uncommon sense hasn’t yet emerged.”
David Weinberger, Small Pieces Loosely Joined
Case:
CRM
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“The Web 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 Nordström and Jonas Ridderstråle,
Funky Business
“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
“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”
“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
“Teens and young
adults are flocking to the Web for
health-related information as much
as they are downloading music
and playing games online and
more often than shopping online,
according to a national survey
from the Kaiser Family
Foundation.”
Reuters (12.11.01):
“We expect consumers to
move into a position of
dominance in the early
years of the new century.”
Dean Coddington, Elizabeth Fischer, Keith
Moore & Richard Clarke, Beyond Managed Care
Today’s Healthcare “Consumer”:
“skeptical and
demanding”
Source: Ian Morrison, Healthcare in the New Millennium
“Medical care has traditionally
followed a ‘professional’ model,
based on two assumptions: that
patients are unable to become
sufficiently informed about their
own care to allow them a pivotal
role, and that medical judgments
are based on science.”
Joseph Blumstein, Vanderbilt Law School
“He shook me up. He put his hand
on my shoulder, and simply said,
‘Old friend, you
have got to
take charge of your
own medical care.’ ”
Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal,
following Jordan’s cancer diagnosis)
Consumer Imperatives
Choice
Control (Self-care, Self-management)
Shared Medical Decision-making
Customer Service
Information
Branding
Source: Institute for the Future
“E-consumers …
want knowledge
are already connected
want convenience
want it to be all about them
want control.”
Douglas Goldstein, e-Healthcare
“Savior for the Sick”
vs.
“Partner for Good
Health”
Source: NPR/VPR 08.15.00
“No one currently
‘owns’ the eHealth
Consumer. It’s an
open playing field.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“We find that eHealth
consumers are willing to
pay—and even switch
health plans—for the
services they most want.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“The ‘curative model’ narrowly
focuses on the goal of cure. …
From many quarters comes
evidence that the view of health
should be expanded to
encompass mental, social and
spiritual well-being.”
Institute for the Future
Internet User,
F
41
$63,000 HHI
64% work FT
54% moms
6 hours/week online
Source: NetSmart Research
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
“CRM has, almost
universally, failed
to live up to
expectations.”
Butler Group (UK)
CGE&Y (Paul Cole): “Pleasant
“Systemic
Opportunity.” “Better job
of what we do today” vs. “Rethink overall
enterprise strategy.”
Transaction” vs.
Wells Fargo ($285B): Master of B&C
3M
$900M since ’99.
. 1/3rd of chk
acct customers on line. 5,400
branches: 4 of 5 who do product
research on line purchase at branch.
Wire transfer, save 30%; 17% less
calls. Material diff to bottom line.
Source: BW Online (03.20.02)
The left
hand doesn’t talk
to the right hand.
Problem #1*:
*And there is no “Problem #2.”
“The organizations we created have
become tyrants. They have taken
control, holding us fettered, creating
barriers that hinder rather than help
our businesses. The lines that we
drew on our neat organizational
diagrams have turned into walls
that no one can scale or penetrate
or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organization Limits.
“In an era when terrorists use
satellite phones and encrypted
email, US gatekeepers stand
armed against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
Boston Globe (09.30.2001)
“Once devised in Riyadh, the tasking order took hours
to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper
communications gear that would have connected the
Navy with its Air Force counterparts. … To
compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to
pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy
machines at full tilt, and distribute the documents to
the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“P&G, Unilever and
Others Are Trying an
Experiment: Giving
Marketing More Say
Over Research*”
—Advertising Age
(03.25.2002)
*Duh.
NEW BUSINESS.
NEW VALUE
PROPOSITION.
The Heart of the Value
Added Revolution:
PSFs Unbound/
The “Solutions
Imperative.”
Base Case: The
Sameness Trap
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, A Unique Moment
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
The
Day!
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Systems
Integrator of
choice. Global Services:
Gerstner’s IBM:
$35B. Pledge/’99: Business
Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“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
Keep In Mind:
Customer
Satisfaction
versus
Customer
Success
Was: “Big
Iron”
Transformer Dudes
Division.
Is: Air
Traffic Controllers
of Electrons.
Was: Bunch
of Guys Who
Make Circuit Breakers
Division.
Is: GE
Industrial Systems.
Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling
‘goods’ to selling ‘home services.’ …
He wants to capture home
improvement dollars wherever and
however they are spent.”
E.g.: “house calls” (At-Home Service: $10B by ’05?) …
“pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling
relationship”).
Source: USA Today/06.14.2002
“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)
“No longer are we only an
insurance provider. Today,
we also offer our customers the
products and services that help them
achieve their dreams, whether it’s
financial security, buying a car, paying
for home repairs, or even taking a
dream vacation.”—Martin Feinstein, CEO,
Farmers Group
“Our mission is to go from being the
world’s premier timeshare—which is a
large idea in a small industry—to being
what we call the market makers for
global travel and leisure. We need
to enable developers to be involved in
more travel and leisure products,
rather than just the timeshare side.”—
Ken May, RCI (Source: Developments)
“VISIONS OF A BRAND-NAME
OFFICE EMPIRE. Sam Zell is not a man
plagued by self doubt. Mr. Zell controls public
companies that own nearly 700 office buildings
in the United States. … Now Mr. Zell says he will
transform the real estate market by turning
those REITs into national brands. … Mr. Zell
believes [clients] will start to view those offices
as something more than a commodity chosen
chiefly by price and location.” –New York Times
(12.16.2001)
“ ‘Architecture’ is
becoming a commodity.
Winners will be ‘Turnkey
Facilities Management’
providers.”
SMPS Exec
“We are a ‘real estate
facilities consulting’
organization, not just
an ‘interior design’
firm.”
Jean Bellas, founder, SPACE (from SMPS Marketer)
Omnicom:
57%
(of
$6B) from marketing services
NEW BUSINESS.
NEW BRAND.
A World of
“Experiences.”
“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
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 [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
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“Guinness as a brand
is all about community.
It’s about bringing people
together and sharing
stories.”—Ralph Ardill, Imagination, in re
Guinness Storehouse
Brown.
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%”
P.S.: “Experience” applies to all work!
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
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
It’s All About EXPERIENCES: “Trapper” to
“Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”;
$750-$1,000 for flood-control
piping … so that beavers
can stay.
Source: WSJ/05.21.2002
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
Ladder Position
Measure
Solutions
Success
(Experiences)
Services
Satisfaction
Goods
Six-sigma
It all adds up to …
THE BRAND.
The Heart of
Branding …
“WHO ARE
WE?”
“Most companies tend to equate branding with the
company’s marketing. Design a new marketing
campaign and, voilà, 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
“WHAT’S
OUR
STORY?”
“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
“Apple opposes, IBM
solves, Nike exhorts,
Virgin enlightens, Sony
dreams, Benetton
protests. … Brands are
not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
“EXACTLY
HOW ARE WE
DRAMATICALLY
DIFFERENT?”
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!)
RD
3
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
“They [consumer goods company]
have acquired a bunch of
products, which is what
everyone is doing. But
what’s the point, the
message, the story line,
the Big Idea that makes ‘it’
all hang together?” —Exec,
major consumer goods company
“You do not merely want to
be the best of the best. You
want to be considered
the only ones who do
what you do.”
Jerry Garcia
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
“WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DRAMATIC
DIFFERENCE TO THE
CLIENT ?”
Branding: Is-Is Not “Table”
TNT is not:
TNT is:
TNT is not:
Juvenile
Contemporary
Mindless
Meaningful
Elitist
Predictable
Suspenseful
Dull
Frivolous
Exciting
Superficial
Powerful
Old-fashioned
Slow
Self-important
NEW BUSINESS.
NEW WORK.
WOW
The
Project.
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
“Let’s make a
dent in the
universe.”
Steve Jobs
WOW Projects
for the
“Powerless.”
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
Model F4
Find a Fellow
Freak Faraway
F2F!/K2K!/
1@T/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2002
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”
WHO WILL GO TO
STOCKHOLM? (Damn it.)
“Nobody gives
you power.
You just take
it.”—Roseanne
The
25.
Sales
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.)
It’s politics,
stupid!
(Play or sit on the sidelines.)
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
Tomorrow land.
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!
“The deepest human
need
to be
appreciated.”
need is the
William James
“The two most powerful things
a kind
word and a
thoughtful
gesture.”
in existence:
Ken Langone, CEO, Invemed Associates [from Ronna
Lichtenberg, It’s Not Business, It’s Personal]
“Thank you”
8
4 Women: 19
17 Men:
“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
“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
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!
NEW BUSINESS.
NEW YOU.
Re-inventing the
Individual: BRAND
YOU.
(Or Else.)
“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 SurvivalSkillsKit2002
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
“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)
3 Weeks in May
“Training” & Prep: 187
“Work”: 41
(“Other”: 17)
1%
vs.
367%
Divas do it. Violinists do it.
Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it.
Surgeons do it. Cops do it.
Astronauts do it. Why don’t
businesspeople do it?
Invent. Reinvent. Repeat.
Source: HP banner ad
Boss Work: The
Talent Imperative.
Brand =
Talent.*
*Duh.
Model
25/8/53
Sports Franchise GM
“The leaders of Great
Groups love talent and know
where to find it. They revel in
the talent of others.”
Warren Bennis & Patricia Ward Biederman,
Organizing Genius
Visibly energetic/ Passionate/ Enthusiastic … about
everything.
Engaging/ Inspires others. (Inspires the
interviewer!)
Loves messes & pressure.
Impatient/ Action fanatic.
A finisher.
Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about
her work.)
Smart.
Curious/ Eclectic interests/ A little (or more) weird.
Well-developed sense of humor/ Fun to be around.
******
No. 1 re bosses: Exceptional talent selection & development
record. (Former co-workers: “Did you visibly grow while
working with X?” / “How has the department/team grown
on a ‘world-class’ scale during X’s tenure?”)
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
“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
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
“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 mixand-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
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
Women’s Strengths Match New Economy
Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style
[empowerment beats top-down decision making];
sustain fruitful collaborations; comfortable with
sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret
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)
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
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
“I don’t
know.”
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!
THINK WEIRD …
the H.V.A. Bedrock.
The
High Standard
Deviation
Enterprise.
THINK WEIRD:
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
Problem #1: “Corporate
consciousness is predictably centered
around the mainstream. The best
customers, biggest competitors, and
model employees are almost invariably
the focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: “Futuredefining customers may
account for only 2% to 3%
of your total, but they
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
“The future has
already happened. It’s
just not evenly
distributed.”
Adrian Slywotzky
W.I.W?
20 of 26
7 of top 10*
*P&G: Declining domestic sales
in 20 of 26 categories; 7 of top 10
(The “billiondollar” problem.)
categories.
Source: Advertising Age 01.21.2002/BofA Securities
Primary Obstacles to “Marketing-driven Change”
1. Fear of “cannibalism.”
2. “Excessive cult of the
consumer”/ “customer driven”/
“slavery to demographics, market
research and focus groups.”
3.Creating “sustainable
advantage.”
Source: John-Marie Dru, Disruption
Account planning
has become “focus
group balloting.”
—Lee
Clow
“Chivalry is dead. The new code of conduct is
an active strategy of disrupting the status quo
to create an unsustainable series of competitive
advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of
cunning, speed and surprise. It may be hard for
some to hang up the chain mail of ‘sustainable
advantage’ after so many battles. But
hypercompetition, a state in which sustainable
advantages are no longer possible, is now the
only level of competition.”
Rich D’Aveni, Hypercompetition: Managing the Dynamics of
Strategic Maneuvering
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work
well for about half the patients for whom they are
prescribed, and experts believe genetic
differences are part of the reason. The
technology for genetic testing is now in use. But
the technique threatens to be so disruptive to the
business of big drug companies – it could limit
the market for some of their blockbuster
products – that many of them are resisting its
widespread use.”
The Wall Street Journal (06.18.2001)
“Generally, disruptive
technologies underperform
established products in
mainstream markets. But they
have other features that a few
fringe (and generally new)
customers value.”
Clayton Christensen, The Innovator’s Dilemma
It sees
all its competitors’
accomplishments
merely as conventions
to be overturned.”
“Sony is the epitome of discontinuity.
Source: Jean-Marie Dru, Disruption
COMPETITORS: “The
best swordsman
in the world doesn’t need to fear
the second best swordsman in the
world; no, the person for him to be afraid of is
some ignorant antagonist who has never had a
sword in his hand before; he doesn’t do the
thing he ought to do, and so the expert isn’t
prepared for him; he does the thing he ought not
to do and often it catches the expert out and
ends him on the spot.”
Mark Twain
Employees: “Are there
enough weird
people in the lab these
days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: “There
is an ominous
downside to strategic supplier
relationships. An SSR supplier is not
likely to function as any more than a mirror
to your organization. Fringe suppliers that
offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the
organizational code). (1.5) Hire people who make you
uncomfortable, even those you dislike. (2) Hire people you
(probably) don’t need. (3) Use job interviews to get ideas, not
to screen candidates. (4) Encourage people to ignore and defy
superiors and peers. (5) Find some happy people and get them
to fight. (6) Reward success and failure, punish inaction.
(7) Decide to do something that will probably fail, then convince
yourself and everyone else that success is certain. (8) Think of
some ridiculous, impractical things to do, then do them.
(9) Avoid, distract, and bore customers, critics, and anyone who
just wants to talk about money. (10) Don’t try to learn anything
from people who seem to have solved the problems you face.
(11) Forget the past, particularly your company’s success.
Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting,
Managing, and Sustaining Innovation
Advice to Corporate Leaders: “Consider the
metaphor of the windmill: You can harness raw
power but you can’t control it. … Hire artists,
clowns, or other disrupters to come in and
challenge your corporate environment. … Hire a
corporate anthropologist to analyze how tolerant
your organization is of deviants and other
innovators. … Once the anthropologist
leaves, hire a shaman to drive out the
evil spirits of conformity. …”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
“Deviance tells
the story of every mass
market ever created. What
Deviants, Inc.
starts out weird and dangerous
becomes America’s next big corporate
payday. So are you looking for the next
mass market idea? It’s out there … way
out there.”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
Big Pharma (Summary):
(1) Discovery … too complex,
wrong scientific emphasis.
(2) Distribution … reps’ role
under heavy fire. (3) “Solution”
= More consolidation = Stupid.
(D + D = G???) (4) Short your stock.
NEW
BUSINESS.
NEW
MARKETS.
Women
Roar.*
Trends I:
*Duh II.
Women & the
Marketspace.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%
D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
Health Care … 80%
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
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.”
Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps: Women love to
talk. Men talk silently to themselves.
Women think aloud. Women talk, men
feel nagged. Women multitask. Women are
indirect. Men are direct. Women talk
emotively, men are literal. Men listen like
statues. Boys like things, girls like
people. Boys compete, girls cooperate.
Men hate to be wrong. Men hide
their emotions.
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
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
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out
to deliver quick, efficient service. But, in the
female mold, women were being turned off by
the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment.
Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her
intelligence and ability.”
EVEolution
“Women don’t buy
They
join them.”
brands.
EVEolution
Not
!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
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
Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
Psssst! Wanna
see my “porn”
collection?
What is your
“Pull Strategy” re
women???
Trends II: Boomer
Bonanza/Godzilla
Geezer.
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%)
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$610B healthcare spending/
74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
Read This!
Carol Morgan &
Doran Levy,
Marketing to the
Mindset of Boomers
and Their Elders
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“Focused on assessing the
marketplace based on lifetime
value (LTV), marketers may
dismiss the mature market as
headed to its grave. The reality is
that at 60 a person in the U.S. may
enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“Women 65 and older spent $14.7
billion on apparel in 1999, almost as
much as that spent by 25- to 34-yearolds. While spending by the older
women increased by 12% from the
previous year, that of the younger
group increased by only 0.1%. But
who in the fashion industry is
currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
Are you
up for totally
rethinking what
you are here for?
Bottom Line:
HealthCare
21
Tom Peters/03.26.2002
HealthCare21: 21 Ideas for Century21
1. Hospitals kill people. (And those they don’t kill, they wound.)
(And they deny it.) (ERRORS RULE!)
2. Hustling ambulances kill pedestrians—and don’t save patients.
3. Doctors are spoiled brats—who don’t like measurements.
Or any form of “interference.” Docs are also cover-up artists …
par excellence (the REAL Hippocratic Oath: “DON’T RAT ON A
FELLOW DOC”).
4. Most prescriptions don’t work … for the PARTICULAR
individual in question.
5. THERE IS LITTLE “SCIENCE” IN “MEDICINE.” (See state to
state variations, country to country variations, the general lack
of agreed upon treatments.)
6. You could save thousands of lives (think Schlindler)—if you
just outlawed handwritten prescriptions.
7. “Detailers” will disappear … when GenX docs arrive.
HealthCare21 (Cont.)
8. IS/IT in hospitals is sub-primitive (despite enormous
expenditures).
9. ELECTRONIC MEDICAL RECORDS … PERIOD. (PLEASE.)
10. Systemic IS/IT is worse—links between docs, insurers,
providers, patients.
11. The Web WILL Liberate. (Info = Power.) (BELIEVE IT.)
12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e
CONTROL. NOW. “LEADERSHIP” OF AGING PROCESS.)
13. “Drug Discovery” processes at Big Pharma are … hopelessly
over-complicated.
(???: Bye Bye … Big Pharma.)
14. 90% of the fix: HARVEST THE LOW-HANGING FRUIT. “They”
are … NOT … the Enemy.
Damn it.
15. Insured “consumers” are spoiled brats … who act as if H.C.
is a Free Good. (MAKE THE BASTIDS PAY … at least a little
more than a little.)
HealthCare21 (Cont.)
16. Genetic engineering & biotech change … EVERYTHING.
(Within 10 years.)
17. New Medical Devices change … EVERYTHING. (Within 20
years.)
18. IS/IT changes … EVERYTHING. (Within 10-15 years.)
19. New Docs change … EVERYTHING. (Within 10-15 years.)
20. New Patients change … EVERYTHING. (Within 5 years.)
*
*
HealthCare21 (Cont.)
ALL THIS =
ENORMOUS
OPPORTUNITY.
21.
The
Opportunity of Several Lifetimes. (For the Bold & Brave.)
H’Care WILL be … TOTALLY … re-invented in the next two
decades. (And, hey, it is our largest “industry.”)
Are you
up for totally
rethinking what
you are here for?
Bottom Line:
Have you
changed
civilization
today?
Source: HP banner ad