Transcript Document 7115720

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NOTE:
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To appreciate this presentation,
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and “Verdana”
NOTE:
Master/
Excellence. Always./
part THREE (of 7)
up, up,
up, up …
the value added ladder
(solutions-experiences-dreams-lovemarks)
19 October 2007
THE MASTER PRESENTATION: There are about 3,500 slides in this 7-part “Master
Presentation.” The first six “chapters” are indeed meant add up to a logical, linear
argument. Part I is context. Part II is devoted entirely to innovation—the sine qua non,
as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation”
“stuff” was scattered throughout the presentation—now it is front and center and a
stand-alone. Part III is a variation on the innovation theme—but it is organized to
examine the imperative (for most everyone in the developed world) of an ultra high
value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with
gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic
for necessarily leaving commodity-like goods and services in the dust. Part IV argues
that in this age of “micro-marketing” there are two macro-markets of astounding size
that are dramatically under-attended by all but a few; namely women and boomersgeezers. Part V underpins the overall argument with the necessary bedrock—Talent, with
brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent
times from several angles.
Despite the “logical argument,” I think you’d be better off if you thought of “all this” as I
do—an ENCYCLOPEDIA OF IDEAS. Various “riffs” are attached throughout which, though
not perfect fits, serve my purpose as “meat” from which I cobble together a finance
presentation in Bahrain … or a health-services lecture in Virginia. For example, the day I
wrote this I spoke to an association made up of independent middle-size companies. I
led off with a new section on the place for and power of middle-sized firms in general,
featuring the German Mittelstand—which is the basis for that country’s surprise ranking
as the world’s #1 exporter. These agile players, residing in the ultimate high-wage
nation, tend to “own” a niche courtesy astoundingly high-value-added products. This
“Mittelstand opener” does not fit in the Master in a tidy fashion, but I want it to be
available for future use and it works pretty well in the overall innovation argument—
hence its landing in Part II. The placement is not bad, but the point is that this “idea” is
now available to me—and you—in my “encyclopedia.”
And there you have it!
19 October 2007
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Master
Excellence. Always.
part one (of 7)
“all you need to know”
(dwelling on the obvious)
not your father’s world
introduction to excellence.
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Master*
Excellence
part two (of 7)
innovate.
Or.
Die.
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Master/
Excellence. Always./
part FOUR (of 7)
“new” Markets
(Stupendous Opportunity)
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Master
Excellence. Always.
part FIVE (of 7)
people!
(Brand you. Talent. Health.
Education.)
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Master
Excellence. Always.
part six (of 7)
leadership!
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Master*
Excellence
part Seven (of 7)
excellence.
summaries.
Lists.
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
MASTER/Part THREE
*In Search of Excellence 1982-2007
part
three
Slides at …
tompeters.com
Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here,
you will find at tompeters.com the last eight years of presentations, a
basketful of “Special Presentations,” and, above all, Tom’s constantly
updated Master Presentation—from which most of the slides in this
presentation are drawn. There are about 3,500 slides in the 7-part “Master
Presentation.” The first five “chapters” constitute the main argument:
Part I is context. Part II is devoted entirely to innovation—the sine qua
non, as perhaps never before, of survival. In earlier incarnations of the
“master,” “innovation” “stuff” was scattered throughout the presentation—
now it is front and center and a stand-alone. Part III is a variation on the
innovation theme—but it is organized to examine the imperative (for most
everyone in the developed-emerging world) of an ultra high value-added
strategy. A “value-added ladder” (the “ladder” configuration lifted with
gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a
specific logic for necessarily leaving commodity-like goods and services in
the dust. Part IV argues that in this age of “micro-marketing” there are
two macro-markets of astounding size that are dramatically underattended by all but a few; namely women and boomers-geezers. Part V
underpins the overall argument with the necessary bedrock—Talent, with
brief consideration of Education & Healthcare. Part VI examines
Leadership for turbulent times from several angles. Part VII is a
collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things
I’ve learned along the way.”
Enjoy! Download! “Steal”—that’s the whole point!
Up,
Up,
Up,
Up
the Value-added Ladder.
As China and India,
among others, surge, “the
rest of us” [incl. the likes of
Romania] must scramble to
“Add Value” [mostly, “back
to the future”]
LEAVE IT
TO BEAVER.
Trapper:
<$20
per beaver pelt.
Source: WSJ
wdcp/“Wildlife
Damage-control
Professional”: $150 to
“remove” “problem beaver”;
$750-$1,000 for
flood-control piping … so
that beavers can stay.
Source: WSJ
Trapper =
Redneck
WDCP = PSF/
Professional Services
Provider
7X to 40X
for
“Solution”
[rather than “service transaction”]
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
And the “M” Stands for … ?
“Systems
Integrator of choice.”/BW
Gerstner’s IBM:
(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )
IBM Global Services*
Services Corp.):
$55B
(*Integrated Systems
Planetary Rainmaker-in-Chief!
“Palmisano’s strategy is
to expand tech’s borders
by pushing users—and
entire industries—toward
radically different
business models. The payoff for IBM
would be access to an ocean of revenue—Palmisano
estimates it at $500 billion a year —that technology
companies have never been able to touch.” —Fortune
“By making the Global Delivery Model both legitimate and mainstream,
we have brought the battle to our territory. That is, after all, the purpose
of strategy. We have become the leaders, and incumbents [IBM, Accenture]
are followers, forever playing catch-up. … However, creating a new
business innovation is not enough for rules to be changed. The
innovation must impact clients, competitors, investors, and society. We
have seen all this in spades. Clients have embraced the model and are
demanding it in even greater measure. The acuteness of their
circumstance, coupled with the capability and value of our solution, has
made the choice not a choice. Competitors have been dragged kicking
and screaming to replicate what we do. They face trauma and disruption,
Investors have
grasped that this is not a passing
fancy, but a potential restructuring
of the way the world operates and
how value will be created in the
future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report
but the game has changed forever.
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW/2004
“UPS wants to take over
the sweet spot in the
endless loop of goods,
information and capital
that all the packages [it
moves] represent.”
Source: ecompany.com (E.g., UPS Logistics manages
the logistics of 4.5M Ford vehicles, from 21 mfg. sites
to 6,000 NA dealers)
MasterCard
Advisors
“ ‘Architecture’ is
becoming a
commodity. Winners
will be ‘Turnkey
Facilities
Management’
providers.”
SMPS Exec
E.g. …
UTC/Otis +
Carrier: boxes to
“integrated
building
systems”
“We want to be
the air traffic
controllers of
electrons.”
Bob Nardelli, GE Power Systems
California Closets: “a
whole-life upgrade, not
just a tidy bedroom.”
—WSJ/0329.07, “Why the ContainerStore Guy Wants to Be Your Therapist”
Huge: Customer
Satisfaction
versus
Customer
Success
“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
Gamechanging “Solutions”: Bet-the-Company
IBM
UPS
Xerox
MasterCard
GE
BestBuy
I. LAN Installation Co.
II. Geek Squad.
(3%)
(30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy
Wholesale “Solutions”
Strategy Makeover.
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ STUFF ‘N’ THINGS
Goods
Raw Materials
The Value-added Ladder/Stuff & TRANSACTIONS
Services
Goods
Raw Materials
The Value-added Ladder/ OPPORTUNITY-SEEKING
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
“ ‘Results’ are
measured by the
success of all those
who have purchased
your product or
service” —Jan Gunnarsson & Olle Blohm, The
Welcoming Leader
“He had done nothing to sell me on his
business, yet he had given me the most
Because
his sole concern had
been my welfare and the
success of my business.”
powerful sales pitch of my life.
—Jim Penman, on learning how to sell (What Will
They Franchise Next? The Story of Jim’s Group)
Era #1/Obvious Value: “Our ‘it’ works, is
delivered on time” (“Close”)
Era #2/Augmented Value: “How our ‘it’
can add value—a ‘useful it’ ” (“Solve”)
Era #3/Complex Value Networks: “How our
‘system’ can change you and deliver
‘business advantage’ ” (“CultureStrategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
“The business of selling is not just about matching viable
It’s
equally about managing the
change process the customer
will need to go through to
implement the solution and
achieve the value promised by
the solution. One of the key differentiators of
solutions to the customers that require them.
our position in the market is our attention to managing change
and making change stick in our customers’ organization.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
The Value-added Ladder/ OPPORTUNITY-SEEKING
Implemented
Gamechanging
Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF. (PSF++)
“Don’t own
nothin’ if you
can help it. If
you can, rent
your shoes.”
—Forrest Gump
“Organizations will
still be critically
important in the
world, but as
‘organizers,’ not
‘employers’!”
— Charles Handy
“ ‘Disintermediation’ is overrated. Those who fear
disintermediation-outsourcing should in fact be
afraid of irrelevance; ‘outsourcing’ is just another
you’ve
become irrelevant to
your customers.”
way of saying that …
—John Battelle/Point/Advertising Age/07.05
“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
(500
of 900
Research)
headline/FT/0327
“[Former Fed Vice-chairman Alan] Blinder …
remains an implacable opponent of tariffs and
trade barriers. But now he is saying loudly that a
new industrial revolution—communication
technology that allows services to be delivered
40
million American
jobs
from afar—will put as many as
at risk of being shipped out of the
country in the next decade or two.”* —Wall Street
Journal /0328
“only the tip
of a very big iceberg.”
*Blinder: 40 million =
Chicago:
HRMAC
Sarah:
Mom:
“ Mom, what
do you do?”
“I’m ‘overhead.’”
“support function” /
“cost center”/
“overhead”
or …
Are you …
“Rock
Stars of the
Age of
Talent”
Department Head
to …
Managing
Partner,
IS Inc.
[HR, R&D, etc.]
Answer:
“Typically in a mortgage company or
financial services company, ‘risk
management’ is an overhead, not a
revenue center. We’ve become more
We pay for
ourselves, and we
actually make money for
the company.” —
than that.
Frank Eichorn, Director
of Credit Risk Data Management Group, Wells Fargo Home
Mortgage (Source: sas.com) (Who Owns the Data? Using
Internal Customer Relationship Management to Improve
Business and IT Integration —Frank Eichorn)
Mantra:
“Eichorn it!”
Every job done
in W.C.W.
is also done
“outside” …
for profit!
[White Collar World]
Core Mechanism:
“Game-changing Solutions”
PSF
(Professional Service Firm “model”/The Organizing Principle)
+
Brand You
(“Distinct” or “Extinct”/The Talent)
+
Wow! Projects
(“Different” vs “Better”/The Work)
Series/Reinventing Work
The Project 50: Fifty Ways To Transform
Every “Task” Into A Project That Matters
The Professional Service Firm 50: Fifty
Ways To Transform Your “Department”
Into A Professional Service Firm Whose
Trademarks Are Passion And Innovation
The Brand You 50: Fifty Ways To Transform
Yourself From An “Employee” Into A Brand
That Shouts Distinction, Commitment And
Passion
Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?
Agriculture Age (farmers)
Industrial Age (factory workers)
Information Age (knowledge workers)
Conceptual Age*
(creators)
*Murakami Teruyasu: “Age of Creation Intensification”
Source: Dan Pink, A Whole New Mind
The “PSF35”:
Thirty-Five
Professional Service Firm
Marks of Excellence
The PSF35: The Work & The Legacy
1.
CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight
words or less, you don’t have a position”—Seth Godin)
2. DRAMATIC DIFFERENCE (“We are the only ones who do what
we do”—Jerry Garcia)
3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)
4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
“Best Team”—Fast)
5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change
the World)
6. Small “Uneconomic” Clients with Big Aims
7. Life Is Too Short to Work with Jerks (Fire lousy clients)
8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the
Universe”—Steve Jobs)
9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”
10. Consistent with #9 above … DO NOT SHY AWAY FROM THE
WORD (IDEA) “RADICAL”
Richard Sennett:
“Craftsmanship,”
“a sustaining life
narrative”
Source: Stefan Stern on Management, FT, 0710.07
Pointed
Point of
View!
R.POV8*
*Remarkable Point Of View/8 Words or less/“If you can’t state your
position in eight words or less you don’t have a position.”—SG
“If you can’t write your
back
of a business
card, you ain’t got a
movie idea on the
movie.”
—Samuel Goldwyn
The PSF35: The Client Experience
11. Always team with client: “full partners in
achieving memorable results” (Wanted: “Chimeras
of Moonstruck Minds”!)
12. We will seek assistance Anywhere to assemble the Best-inPlanet Team for the Project
13. Client Team Members routinely declare that working with us
was “the Peak Experience of my Career”
14. The job’s not done until implementation is
“100.00% complete” (Those who don’t “get it” must go)
IMPLEMENTATION IS NOT COMPLETE UNTIL
THE CLIENT HAS EXPERIENCED “CULTURE
CHANGE”
16. IMPLEMENTATION IS NOT COMPLETE UNTIL
SIGNIFICANT “TECHNOLOGY TRANSFER HAS
TAKEN PLACE-ROOT (“Teach a man to fish …”)
17. The Final Exam: DID WE MAKE A DRAMATIC,
LASTING, GAME-CHANGING DIFFERENCE?
15.
“The business of selling is not just about matching
viable solutions to the customers that require
them. It’s
equally about managing
the change process the customer
will need to go through to
implement the solution and
achieve the value promised by
the solution.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
UniCredit Group/
UniCredito Italiano* **
—3rd party measurement
—Customer-initiated
measurement
—Primary $$$$ incentives
—“Factories”
—Primary Corporate Initiative
—Etc
*#13
**TP/#1
The PSF35: The People & The Leadership
18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD)
19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old,
same old”)
20. Early Opportunities (vs. “Wait your turn”)
21. Up or Out (Based on “Legacy”/Mentoring as much as
“Billings”/“Rainmaking”)
22. Slide the Old Aside/Make Room for Youth (Find oldsters
new roles?)
23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO
DAY #“R” [R = Retirement]
24. Office/Practice Leaders Evaluated Primarily on
Mentoring-Team Building Skills
25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)
26. Team Leadership Skills Valued Early
27. Partner with B.I.W. [Best In World] Outsiders as Needed
and to Infuse Different Views
The PSF35: The Firm & The Brand
28. EAT-SLEEP-BREATHE-OOZE
is my message”—Gandhi)
INTEGRITY (“My life
29. Excellence+ in EXECUTION … 100.00% of the Time
30. “Drop everything”/“Swarm” to Support a Harried-On
The Verge Team
31. SPEND
ON R&D LIKE A TECH FIRM.
32. A PROPRIETARY METHODOLOGY (FBR, McKinsey,
Chiat Day, IDEO, old EDS)
33. BRAND
MANIACS (Organize Around a Point of View Worth
BROADCASTING)
34. PASSION!
35.
ENTHUSIASM!
EXCELLENCE. ALWAYS.
“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Proprietary Point of View
(Methodology)
W.W.P.F./Work Worth Paying For
(100%)/Outside Clients (25%+)
When: Now!
(1) Translate ALL departmental
activities into discrete
W.W.P.F. “Products.”
(2) 100% go on the Web.
(3) Non-awesome are
outsourced (75%??).
(4) Remaining “Centers of
Excellence” are retained &
leveraged to the hilt!
BMW’s
Designworks/USA:
>50% from
outside work
Static/Imitative
Integrity.
Quality.
Continuous Improvement.
Superior Service (Exceeds Expectations.)
Completely Satisfactory Transaction.
Smooth Evolution.
Market Share.
Dynamic/Different
Dramatic Difference!
Disruptive!
Insanely Great! (Quality++++)
Life-(Industry-)changing Experience!
Game-changing!
WOW!
Surprise!
Delight!
Breathtaking!
Punctuated Equilibrium!
Market Creation!
G.M. = The Recruitment and
Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets
on Projects. [Period!]
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
EXCELLENCE =
Flawless EXECUTION
+ Continuous IMPROVEMENT
+ Brilliantly Trained PEOPLE
+
Gamechanging QUESTS +
WEIRD Rosters +
GASPWORTHY Results
EXCELLENCE =
Flawless EXECUTION
+ Continuous IMPROVEMENT
+ Brilliantly Trained PEOPLE
+
Gamechanging QUESTS +
WEIRD Rosters +
GASPWORTHY Results
Psf.
Bedrock.
PSF/Professional Service Firm/Beliefs
Profession: Calling/Passion to make a
difference/Excellence (always)
point of view: know exactly what we
stand for/
“Dramatic Difference”
Client: enduring, test-the-limits
relationship/Trusted advisor
Solution: Rock His-her World/ “wow”/
implemented “Culture change”/
>>>>>> “satisfaction”
Cost
(at All Costs*) Minimization
Professional?
Or/to: Full Partner“Purchasing Officer” Thrust #1:
Leader in Lifetime
Value-added
Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
Fleet Manager
Rolling Stock Cost
Minimization Officer
vs/or
Chief of Fleet Lifetime
Value Maximization
Strategic Supply-chain Executive
Customer Experience Director
(via drivers)
2 38
m
s
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Or/to:
Healing-Services
Team
(who happens to be a techie)
PSF Transformation: Credit Department/Trek
Was
Is
Credit Dept
Financial Services
Hammer on dealers until
they pay
Make dealers successful so they
CAN pay
AR sold to 3rd party
commercial co.
Trek is the commercial financial
Company
23 employees
12 employees
Oversee peak AR of $70M
Oversee peak AR of $160M
Identify risky dealers
Identify opportunities
Cost Center
Profit Center
No products
Products: Consulting, MC/Visa,
Stored value of gift cards, Gift card
peripherals, Online payments
Source: John Burke/0330.06
Photographer: Louise Roach
Big Idea:
“Corporation” as
Mega-“PSF”
(Professional Service
Firm*)
* “Virtual” Collection of Entrepreneurially-minded
Professionals (“Talent”/“Roster”) Creating/Applying
Intellectual Capital (“Work Product”)
Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?
Core Mechanism:
“Game-changing Solutions”
Brand You(S)
(“Distinct” or “Extinct”/The Talent)
+
Wow! Project(s)
(“Different” vs “Better”/The Work)
=
PSF(S)
(Professional Service Firm “model”/The Organizing Principle)
=
“Corporation” as
“Mega-PSF”
Photographer: Mike Brake
The FEVP/Fundamental Enterprise Value-Added
Proposition-Equation/Mark2007
(1) 100% “WOW PROJECTS”
(New Org “DNA”/“The Work”)
+
(2) Incredible “TALENT” Transformed into
(3) Entrepreneurial “BRAND YOUs” and
(4) Given Room-to-Roam & Launched on
Awesome “QUESTS”
=
(5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into
Wildly Innovative Professional Service Firms) …
(6) Which Coalesce to Transform the FEVP/Fundamental Enterprise
Value Proposition from “Superior Products & Services” to
“ENCOMPASSING SOLUTIONS” &
“GAME-CHANGING CLIENT SUCCESS”
Big Idea/“Meta”-Idea/Premier “Engine of Value Added”
(1) The Talent: “Best Roster” of Entrepreneurialminded Brand Yous.
(2) The (Virtual) Organization: Internal or
External “PSF”/Professional Service Firm
working with “Best Anywhere” = Engine of
Value Added through the Application of Creative
“Intellectual Capital”
(3) The Work Product: “Game Changer”/
“Gaspworthy” WOW Projects
“… but I'm having a hard time
imagining 300 million Brand Yous.”
“Would you call a clerk in a purchasing
department at a big insurance company
"brand you"? Probably not. But what
about a single Hispanic Mom, age 32,
raising 3 kids in the LA area and holding
2.5 jobs to do so? I'd call her a hero, selfreliant, resilient--and a Brand You!”
Posted by tom peters at November 20, 2006 10:16 PM
WOW!
The
Project.
Core Mechanism:
“Game-changing Solutions”
PSF
(Professional Service Firm “model”/The Organizing Principle)
+
Brand You
(“Distinct” or “Extinct”/The Talent)
+
Wow!
Projects
(“Different” vs “Better”/The Work)
“Let’s make a
dent in the
universe!”
—Steve Jobs
Your Current Project?
1. Another day’s work/Pays
the rent.
4. Of value.
7. Pretty Damn Cool/Definitely
subversive.
10. WE AIM TO CHANGE THE
WORLD. (Insane!/Insanely
Great!/WOW!)
“Astonish me!”
(S.D).
“Build something great!”
“Make it immortal!”
(H.Y.).
(D.O.)
If you are not
prepared to be
fired over your
beliefs … you are
working on the
wrong project.
—TP
You! =
Your Project
Portfolio!
A “position” is
not an
“accomplishment.”
—TP
Will you actually
remember it as
worthwhile 10 years
from now?”
—S.H.
WOW! Projects:
Nuts & Bolts
(a few)
“Every project we undertake starts with
‘How can
we do what has
never been done
before?’”
the same question:
—Stuart Hornery, Lend Lease
Playmate!*
Playpen!
Prototype!
*Can be Client, supplier … as well as Insider
Where to look for “Playmates”:
F.F.F.F.
(Find a Fellow Freak Faraway)
F2F!/f2fK!/
1@T/R.F!A.*
*Freak-to-Freak/Freak-to-Freaky Kustomer/ One at a Time/ Ready.Fire!Aim.
The
“Sri Lanka
Stratagem”
Forward, march:
BIG
Division, BIG Customer,
Where NOT to look for “Playmates”:
BIG Vendor,
UP
Culture of Prototyping
“Effective prototyping may be
the most valuable core
competence an innovative
organization can hope
to have.”
—Michael Schrage
WOW!
Projects
Epidemic:
Starting a
Demos, Heroes,
Stories!
Premise:
“Ordering”
Systemic Change is a
Waste of Time!
“Somewhere in your
organization, groups of
people are already doing
things differently and
better. To create lasting
change, find these areas of
positive deviance and fan
the flames.” —Richard Tanner Pascale & Jerry
Sternin, “Your Company’s Secret Change Agents,” HBR
JKC
1. Scour for renegades;
wine & dine.
2. Go outside for funds.
Demo = Story
“A key – perhaps the key –
to leadership is the
effective communication
of a story.”
—Howard Gardner, Leading Minds:
An Anatomy of Leadership
Best
story
wins!
REAL Org Change: Demos
& Models (“Model
Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to
reinvent gov’t”)/
Stories & Storytellers (Props!)/
Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/
Cheerleaders & Recognition (Pos>>Neg, Volume)/
New Language (Hot/Emotional/WOW)/ Seekers
(networking mania)/ Protectors/ Support Groups/
End Runs—“Pull Strategy” (weird alliances, weird
customers, weird suppliers, weird alumnae-JKC)/ Field “Real
People” Focus (3 COs) (long way away)/
Speed (O.O.D.A. Loops—act before the “bad guys” can react)
C.f., Bob Stone, Lessons from an Uncivil Servant
“Some people look for
things that went wrong
and try to fix them. I
look for things that
went right, and try to
build off them.” —Bob Stone
(Mr ReGo)
Demos!
Heroes!
Stories!
“Make your own
McKinsey” (AP)
Build a “School on top of
a school”/ContinuingExec Ed (The Parallel
Universe Strategy)
Stories … Paint me a
picture … Story
“infrastructure” … Demos
… Quick prototypes …
Experiments … Heroes …
Renegades … Skunkworks
… Demo Funds … V.C. … G.M.
… Roster … Portfolio …
Stone’s Rules … JKC’s Rules
Tempo:
He who
has the quickest
O.O.D.A. Loops*
wins!
*Observe. Orient. Decide. Act. / Col. John Boyd
Subversive Change
Be(very)ware “genetic constraints” (history’s looong arm)
You must “do” Gandhi
Hire weird (fulltime or temp)
Find the extant crazies (troll for them via offers to join
weird project teams)
Create a (quiet) “Crazies Club”/Keep extendin’ the Web
Create “boondocks projects” by the truckload (with
partners of every flavor)
Understand: Yours is a “protection racket”
Sky High Standards!! (There’s a deadly serious reason for
“all this”—life or death)
TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway;
Kelly Johnson; John Boyd
SP: “But can you turn a ‘defensive player’
into an ‘offensive player’?”
TP: “Yes! Work with him/her to re-frame
their principal project to the point that
their ego is fully engaged and it becomes
something of a ‘life compulsion.’ ” *
* “If you and I had $150K in the bank and on the line
and the day before the opening the Fire Inspector …”
EXCELLENCE.
VALUE-ADDED LADDER II.
EXPERIENCE IT.
“Experiences
are as distinct
from services as
services are from
goods.”
—Joe Pine & Jim Gilmore, The
Experience Economy: Work Is Theatre & Every Business a
Stage
“The [Starbucks] Fix” Is on …
“We have
identified a ‘third
place.’
And I really believe
that sets us apart. The third place is
that place that’s not work or home. It’s
the place our customers come for
refuge.” —Nancy Orsolini, District Manager
WHAT CAN BROWN
DO FOR YOU?
“Lexus sells its
cars as containers
for our sound
systems. It’s
marvelous.”
—Sidney Harman/
Harman International
Moving Companies
WSJ/08.2003: “In Texas,
They’ll fill your empty fridge
with brie and wine. An outfit in
New York promises quick
high-speed Internet hookup.
And when Allied Van Lines
finishes unloading your
couch, they’ll have a feng shui
expert figure out the right
spot. …”
“When Pete Rozelle
ran the league, it was
a football business
and a good one. Now
it’s truly an
entertainment
business.” —Paul Much, Investment
Advisor
Moving Companies
WSJ/08.2003: “In Texas, They’ll fill
your empty fridge with brie and
wine. An outfit in New York
promises quick high-speed
Internet hookup. And when Allied
Van Lines finishes unloading your
couch, they’ll have a feng shui
expert figure out the right spot.
…”
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“Operation Personal
Renewal”
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW/2004
Photographer: Fernando Rodrigues
I. LAN Installation Co.
II. Geek Squad.
(3%)
(30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy
Wholesale “Solutions”
Strategy Makeover.
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-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
Safe, On-time and ...
“We defined
personality as a
market niche. We
seek to amaze,
surprise,
entertain.”
— Herb Kelleher, SWA / LUV
Warren Goes
Shopping …
Q: “Why did you buy
Jordan’s Furniture?”
A: “Jordan’s is
It’s all
showmanship.”
spectacular.
Source: Warren Buffet interview/Boston Sunday Globe/12.05.04
“ … focus on
‘engagement,’ not
‘experience’ …”
Caution:
—Martin Buber, I and Thou, 1927
(from Steve Yastrow, We)
C
*Chief e
O*
Xperience Officer
Hire a
theater director,
as a consultant
or FTE!
First Step (?!):
“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
“Most executives have
no idea how to add value
to a market in the
metaphysical world. But
that is what the market will cry
out for in the future. There is no
lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Female
dominance
Experiences:
Words!
— Magician of Magical Moments
— Maestro of Moments of Truth
— Recruiter of Raving Fans
— Impresario of First Impressions
— Wizard of WOW
— Captain of Brilliant Comebacks
— Director of Electronic Customer Experiences
— Conductor of Customer Intimacy
— King of Customer Community
— Queen of Customer Retention
— CEO of Ownership Experience
— Managing Director of After-sales Experience
<TGW
vs.
>TGR
[Things Gone WRONG/Things Gone RIGHT]
“Perfection is achieved
only by institutions on the
point of collapse.”
— C. Northcote Parkinson
3M’s Innovation
Crisis: How Six Sigma
Almost Smothered
Its Idea Culture
Source: Title/Cover Story, BW, 0611.07 (“What’s remarkable is
how fast a culture can be torn apart,” 3M lead scientist; “In
an innovation economy, [6 Sigma] is no longer a cure all”/BW)
“What Rikyu
demanded was not
cleanliness alone,
but the beautiful
and the natural
also.”
—Kakuzo Okakura, The Book of Tea
“Rikyu was watching his son Sho-an as he
swept and watered the garden path. ‘Not clean
enough,’ said Rikyu, when Sho-an had finished
his task, and bade him try again. After a weary
hour, the son turned to Rikyu: ‘Father, there is
nothing more to be done. The steps have been
washed for the third time, the stone planters
and the trees are well sprinkled with water,
moss and lichens are shining with a fresh
verdure; not a twig, not a leaf have I left on the
ground.’ ‘Young fool,’ chided the tea-master,
‘that is not the way a garden path should be
swept.’ Saying this, Rikyu stepped into the
garden, shook a tree and scattered over the
garden gold and crimson leaves, scraps of the
brocade of autumn! What Rikyu demanded was
not cleanliness alone, but the beautiful and the
natural also.” —Kakuzo Okakura, The Book of Tea
3-cent
lemon!
SingaporeCandy
(Operational Excellence+)
BoardFirst.com
$5
Seating group “A”
24 hours exactly
SWA
“With ISO 9000 you can still have
terrible processes and products. You
can certify a manufacturer that makes
life jackets from concrete, as long as
those jackets are made according to
the documented procedures and the
company provides next of kin with
instructions on how to complain about
defects. That’s absurd.” —Richard Buetow,
former Director of Corporate Quality for Business
Systems, Motorola
Moving Companies
WSJ/08.2003: “In Texas,
They’ll fill your empty fridge
with brie and wine. An outfit in
New York promises quick
high-speed Internet hookup.
And when Allied Van Lines
finishes unloading your
couch, they’ll have a feng shui
expert figure out the right
spot. …”
Hire a
theater director,
as a consultant
or FTE!
First Step (?!):
EXCELLENCE.
DRAMATIC.
DIFFERENCE.
DOABLE.
“The ‘surplus society’ has a surplus of
companies, employing
similar
similar
similar
similar
similar
people, with
educational backgrounds, coming up with
similar
similar
ideas, producing
with
prices and
things,
quality.”
—Kjell Nordström and Jonas Ridderstråle, Funky Business
This is not
a “mature
category.”
This is an
“undistinguished
category.”
“When we did it
‘right’ it was still
pretty ordinary.”
—Barry Gibbons on “Nightmare No. 1”
“Companies have
defined so much
‘best practice’
that they are now
more or less
identical.”
—Jesper Kunde, Unique Now ... or Never
$415/SqFt/Wal*Mart
$798/SqFt/Whole
Foods
“It’s simple, really,
Tom. Hire for s,
and, above all,
promote for s.”
—Starbucks middle manager/field
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
#1/100
“Best Companies to
Work for”/2005
Wegmans
EXCELLENCE.
NO EXCUSES.
WallopWal*Mart16*
*Or: Why it’s so ABSURDLY EASY
to BEAT a GIANT Company
The “Small Guys” Guide: Wallop Wal*Mart16
*Niche-aimed. (Never, ever “all things for all people,” a “miniWal*Mart.)
*Never attack the monsters head
business and lukewarm customers.)
on! (Instead steal niche
*“Dramatically
Different”
(La Difference ... within our community, our
industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS
WHERE MOST MIDGETS COME UP SHORT.)
*Compete on value/experience/intimacy, not price. (You
ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)
*Emotional bond with Clients,
ON EMOTION/CONNECTION!!)
Vendors. (BEAT THE BIGGIES
“This is an essay about what it takes to create and sell something remarkable. It is a
plea for originality, passion, guts and daring. You can’t be remarkable by following
someone else who’s remarkable. One way to figure out a theory is to look at what’s
working in the real world and determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly have in common? Or NeimanMarcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and
Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive
The thing that all
these companies have in
common is that they have
nothing in common.
looking in the rearview mirror.
They are outliers. They’re
on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big
or extremely small. The reason it’s so hard to follow the leader is this: The leader is
the leader precisely because he did something remarkable. And that remarkable
thing is now taken—so it’s no longer remarkable when you decide to do it.”
—Seth Godin, Fast Company
The “Small Guys” Guide: Wallop Wal*Mart16
*Hands-on, emotional leadership. (“We are a great &
cool & intimate & joyful & dramatically different team working to
transform our Clients lives via Consistently Incredible
Experiences!”)
*A community
out of it!)
star! (“Sell” local-ness per se. Sell the hell
*An
incredible experience, from the first to last
moment—and then in the follow-up! (“These guys
are cool! They ‘get’ me! They love me!”)
*DESIGN DRIVEN! (“Design” is a premier weapon-inpursuit-of-the sublime for small-ish enterprises, including the
professional services.)
The “Small Guys” Guide: Wallop Wal*Mart16
*Employer of choice. (A very cool, well-paid
place to work/learning and growth experience in at
least the short term … marked by notably progressive
policies.) (THIS IS EMINENTLY DO-ABLE!!)
*Sophisticated
use of information
technology. (Small-“ish” is no excuse for “small
aims”/execution in IS/IT!)
*Web-power! (The Web can make very small very
big … if the product-service is super-cool and one
purposefully masters buzz/viral marketing.)
*Innovative! (Must keep renewing and expanding
and revising and re-imagining “the promise” to
employees, the customer, the community.)
The “Small Guys” Guide: Wallop Wal*Mart16
*Brand-Lovemark* (*Kevin Roberts) Maniacs!
(“Branding” is not just for big folks with big budgets. And modest
size is actually a Big Advantage in becoming a local-regionalniche “lovemark.”)
*Focus
*
on women-as-clients. (Most don’t. How stupid.)
Excellence!
(A small player … per me …
has no right or reason to exist unless they are in Relentless
Pursuit of Excellence. One earns the right—one damn day and
client experience at a time!—to beat the Big Guys in your chosen
niche!)
The Small*Mart
Revolution: How
Local Businesses
Are Beating Local
Competition
—Michael Shuman
tom peters: what
I’ve Learned
about “Small
Business”
Passion for PRODUCT.
OBSESSION With Product.
LOVE The Product.
Aim To Be “ONLY ONES WHO DO WHAT WE DO.”
Keep ADDIN’ Stuff.
Invest “UNWISELY” in R&D.
Reside Permanently In The DISCOMFORT Zone.
“Unhealthy” PARANOIA Is A Good Thing.
Add Clients That PUSH-PULL.
SELL. SELL. SELL. SELL.
Go For Broke: CUSTOMER CONTACT PEOPLE.
PERFECTION: Customer Contact People.
Hire for ATTITUDE.
INVITE On An Adventure.
GREAT CFO/Biz Guy-Gal.
NASTY CFO/Biz Guy-Gal.
QUADRANGULAR LEADERSHIP: Visionary-Talent FanaticProject Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)
GREAT Logo.
DESIGN!
“OVERDO” Marketing Materials.
WOMEN Roar. WOMEN Rule. WOMEN Buy.
Diversity = $$$$$$
Be RELENTLESS. Cut And RUN.
Product Includes-Features the PACKAGING.
Define Your DRAMATIC DIFFERENCE (R.P.O.V.8)
Best STORY Wins.
DRESS For Success.
First Goal: AMUSE Yourself.
Know YOURSELF.
DON’T Do Stuff You Hate.
“Over-invest” In RELATIONSHIPS.
(R.O.I.R.: Return On Investment in Relationships)
SYSTEMATICALLY “Manage” Relationships.
“Work” The SUPPORT PEOPLE In Client Orgs.
BLOG As If Your Life Depended On It.
SOPHISTICATED Use Of Infotech.
RESPONSE To Problems.
Make ’Em PAY.
CLOSE The Sale.
Invest BIGTIME In PR.
Media FRIENDLY.
Live-To-SCHMOOZE.
Fun/Laughter = $$$$
MBWA: Stay In Touch.
“You Must Be The Change You Wish
To See In The World”/GANDHI
5K For 5M.
Your CALENDAR Never Lies.
OUT: Pastels. IN: Technicolor
JUST SAY “NO” TO C.E.O.: CIO/Chief Innovation
Officer. CSO/Chief Sales Officer. CWO/
Chief Wow Officer
EXCELLENCE Is Very Cool.
“MICRO-MANAGE” Your Reputation.
Wear Your Integrity On Your SLEEVE.
KEEP Your Promises.
EXECUTION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
“A Man Without A Smiling Face
MUST NOT Open His Shop.”
RECOGNITION!
Work HARD, Not Smart.
“Insanely Great.” THE STANDARD.
R.O.I.R
Measure #1:
R.O.I.R.*
*Return On
Investment In
Relationships
Sell
Sell
perdue, milliken, jim’s group,
basement systems inc,
guardsmark, PPI/Professional
Parking Services Inc, Semco,
Wegmans, John Laing,
Commerce Bank, (Brazilian
discounter), (Cairo
Contractor), etc
Perdue, Milliken, Jim’s Group, Basement
Systems Inc, Guardsmark, PPI/Professional
Parking Services Inc, Semco, Wegmans, John
Laing, Commerce Bank, (Brazilian discounter),
“Soft
stuff”/ people,
action, Execution,
Experience
(Cairo Contractor), etc:
Small Giants:
Companies That
Choose To Be
Great Instead
Of Big
—by Bo Burlingham
Small Giants/Bo Burlingham
"First, I could see that, unlike most entrepreneurs,
their founders and leaders had recognized the full
range of choices they had about the type of company
they would create."
"Second, the leaders had overcome the enormous
pressures on successful companies to take paths they
had not chosen and did not necessarily want to follow."
"Third, each company had an extraordinarily intimate
relationship with the local city, town, or county in
which it did business -- a relationship that went well
beyond the usual concept of `giving back.'"
"Fourth, they cultivated exceptionally intimate
relationships with customers and suppliers, based on
personal contact, one-on-one interaction, and mutual
commitment to delivering on promises."
Small Giants/Bo Burlingham
"Fifth, the companies also had what struck me as
unusually intimate workplaces."
"Sixth, I was impressed by the variety of corporate
structures and modes of governance that these
companies had come up with."
"Finally, I noticed the passion that the leaders brought
to what the company did. They loved the subject
matter, whether it be music, safety lighting, food,
special effects, constant torque hinges, beer, records
storage, construction, dining, or fashion."
The “New German
Miracle”* = The “Old
German Miracle” =
Mittelstand**
*Among other things, #1 in exports
**”No doubt of it, Tom [BASF exec/04.07]
“We share the Zingerman’s
experience selling food that makes
you happy, giving service that
makes you smile—in passionate
pursuit of our mission, showing love
and caring in all our actions to
enrich as many lives as we possibly
can.” —Zingerman’s Guide to Giving Great Service/
Ari Weinzweig/Ann Arbor, MI
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
I [“Bacteria Man”] HEREBY PLEDGE:
When asked, “What are some examples
of companies stepping up to today’s
challenges?” … I will …
NEVER
AGAIN … offer an example of a
Giant Company; instead I’ll refer to
Cirque du Soleil, Donnelly’s Weatherstrip
Service, 3K tanning salons, 10.6M
women-owned businesses (or the
typically/95+% female recipients of
micro-lending) …*
*There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”
Stephen Jay Gould (& Me*):
Bacteria rule!
Sizeable cases
are reasonably
insignificant
anomalies.
[e.g. humans]
(*Call me “Bacteria Tom”)
Hmmm …
Bacteria.
Productivity of small.
Failure rate of Big Mergers.
Failure rate of Big Companies.
Terrorists.
Galbraith vs Hayek.
(“Left tail” limits.)
Productivity Pandemic
IMAOA: Institute of
Modest Advances in
(Many, Many) Ordinary
Activities
Biodiversity
Lesson #1: Need
Giants and SMEs
The “Missing 900M”
Will the Boat Sink the
Water: The Life of
China’s Peasants
—Chen Guidi and Wu Chuntao
Jim’s
Group
Jim Penman/“Empire Builders”/MT /
Jan/Feb 2006/Australia
Jim’s Group: Jim Penman.*
1984: Jim’s Mowing. 2006: Jim’s Group.
2,600 franchisees (Australia, NZ, UK).
Cleaning. Dog washing. Handyman.
Fencing. Paving. Pool care. Etc.
“People first.” Private. Small staff. Franchisees
can leave at will. 0-1 complaint per year is
norm; cut bad ones quickly.
*Ph.D. cross-cultural anthropology; mowing on the side
Source: MT/Management Today (Australia), Jan-Feb 2006
Basement
Systems inc/
seymour, ct
the met/ big
picture
EBF* to EBI**
“engage the kids
around their
passions.”
—Dennis Littky/
The Met-Big Picture Schools
* Education By Fiat
** Education By Interest
Planetree:
A Radical Model for New
Healthcare/Healing/
Wellness Excellence
"All sane persons agree that 'healthcare needs an overhaul.' And that's where
the agreement stops. Healthcare issues are thorny, and system panaceas are
about as likely as the sun rising in the West. But there is good news here and
there--and great news courtesy the Planetree Model.
"In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the
patient and frontline staff often get lost in the shuffle. Enter Planetree. While
oceanic systemic solutions remain out of reach, Planetree provides a
remarkable demonstration of what healthcare--with the patient at the center-can be all about; and is all about among Planetree Alliance members.
"I know this may sound ridiculous, but everything about the 'model' works. It
is great for patients and their families--and is truly about humanity and
healing and health and longterm wellness, not just a 'fix' for today's problem.
It is great for staff--Planetree-Griffin is rightly near the top of the 'best places
to work in America' list, year in and year out. And Planetree also works as a
'business model'--any effectiveness measure you can name is in the Green
Zone at Griffith.
"For 25 years my 'gig' has been 'excellence.' Put simply, there is no better
exemplar of customer-centered, employee-friendly excellence, in any
industry, than Griffin-Planetree. The Planetree model works--and in my
extensive work in the health sector, I 'sell' it shamelessly, and pray that my
clients are taking it all in."
tom peters/response to request for comment on Planetree
The 9 Planetree Practices
1. The Importance of Human Interaction
2. Informing and Empowering Diverse Populations: Consumer
Health Libraries and Patient Information
3. Healing Partnerships: The importance of Including
Friends and Family
4. Nutrition: The Nurturing Aspect of Food
5. Spirituality: Inner Resources for Healing
6. Human Touch: The Essentials of Communicating
Caring Through Massage
7. Healing Arts: Nutrition for the Soul
8. Integrating Complementary and Alternative Practices
into Conventional Care
9. Healing Environments: Architecture and Design
Conducive to Health
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
The Patient-Family Experience
“Patients are stripped of control, their clothes are
taken away, they have little say over their schedule,
and they are deliberately separated from their family
and friends. Healthcare professionals control all of the
information about their patients’ bodies and access to
the people who can answer questions and connect them
with helpful resources. Families are treated more as
intruders than loved ones.” Putting Patients First
—
Susan Frampton, Laura Gilpin, Patrick Charmel
,
139,380 former
patients from 225 hospitals:
Press Ganey Assoc:
none
of THE top 15 factors
determining Patient Satisfaction
referred to patient’s health outcome
PS directly related to Staff Interaction
PS directly correlated with Employee
Satisfaction
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
“There is a misconception that supportive interactions require
more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the
interactions themselves add nothing to the budget.
Kindness is
free.
Listening to patients or answering their
questions costs nothing. It can be argued that negative
interactions—alienating patients, being non-responsive to their
needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative,
withdrawn and less cooperative—requiring far more time
than it would have taken to interact with them initially in a
positive way.” —Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
Care Partner Programs
(IDs, discount meals, etc.)
Unrestricted visits (“Most Planetree hospitals
have eliminated visiting restrictions altogether.”) (ER at one
hospital “has a policy of never separating the patient from the
family, and there is no limitation on how many family members
may be present.”)
Collaborative Care Conferences
Clinical Guidelines Discussions
Family Spaces
Pet Visits (POP: Patients’ Own Pets)
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Griffin:
Music in the parking
lot; professional musicians in
the lobby (7/week, 3-4hrs/day) ;
5 pianos ;
volunteers (120-140 hrs arts &
entertainment per month).
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
“Planetree Look”
Woods and natural materials
Indirect lighting
Homelike settings
Goals: Welcome patients, friends and
family … Value humans over technology ..
Enable patients to participate in their care
… Provide flexibility to personalize the
care of each patient … Encourage
caregivers to be responsive to patients …
Foster a connection to nature and beauty
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Access to nurses station:
“Happen to”
vs
“Happen with”
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Conclusion:
Caring/Growth
“Experience”
“It was the goal of
Planetree to help
patients not only get
well faster but also to
stay well longer.”
—Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
(Planetree Alliance/Griffin Hospital)
Care!/Love!/Spirit!
Self-Control!
Connect!/learn!/
involve!/Engage!
Understanding!/Growth!
De-stress!/heal!
Whole patient & family
& friends!
be well!/stay well!
“Planetree is about
human beings
caring for other
human beings.”
—Putting Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel (“Ladies and gentlemen serving
ladies and gentlemen”—4S credo)
f.y.i.
Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results:
Financially successful.
Expanding programsphysically. Growing market
share. Only hospital in “100
Best Cos to Work for”—
7 consecutive years,
currently #6.
—“Five-Star Hospitals,” Joe Flower,
strategy+business (#42)
“What’s Really Propping
Up the Economy:
Healthcare has added 1.7
million jobs since 2001.
The rest of the private
sector? None.”
Source: Title, cover story, BusinessWeek, 0925.2006
Excellence.
Bank on it.
(commerce bank.)
“We defy conventional
wisdom, operating more
like the young bucks at
Starbucks than the old
farts at the Bank of
America.” —Vernon Hills
The Commerce Bank Model
“Are you going to cost cut
your way to prosperity?
Or …
are you going to spend your
way to prosperity?”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
*deposit focused.
*Customer value-added.
*Great retail experience.
*Best facilities. Best locations.
*No stupid rules.
*Driven by revenue growth,
not cost reduction.
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
“cost cutting
is a death
spiral.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
“Our whole
story is
growing
revenue.”
—Vernon Hills (Top-line driven; standard
is bottom-line driven by cost cutting)
The Commerce Bank Model
“over-invest in our
people, over-invest
in our facilities.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
“we want
them in our
stores.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
Commerce Bank: From “Service” to “Experience”
7X. 730A800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%;
WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
The Commerce Bank Model
“we don’t accept the 80/20 theory.
We believe every customer has
value, that you can’t tell which
one is the high-value customer
over time, and that that
philosophy degrades the brand.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
“every computer at commerce bank has a
special red key on it that
says, ‘found something stupid that we are doing
that interferes with our ability to service the
customer? Tell us about it, and if we agree, we
will give you $50.’”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
“You do not merely want to be
You
want to be
considered the
only ones who
do what you
do.”
the best of the best.
—Jerry Garcia
July 2007.
Africa.
Excellence.
Always.
Guide Attributes
Camp #2 Camp #1, 3
Knowledge
Curiosity
Engagement
Eye contact
“People person”
People reader
Mental-emotional agility
Consultative skills
Storyteller
“Would you
recommend
to others?”
B+
B
D
DD
DD
DD-
NO
Way!
B
B+
AA
A
B+
B+
B+
C+
With
Pleasure!
Alpha & Omega/Fred
“Would
you recommend
to others?”
Reichheld:
Garth Thompson:
Skill 10%,
Attitude 90%
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
William Donald
Schaefer
Mayor of Baltimore
He Cared.
>4S
Wilderness
Safaris
The Case
of the
Missing
Sherry
Glass.
TGR >
TGW
TGR (“Things
gone right”) >
TGW (“Things
Gone Wrong”)
Disney’s
Parking Lot
Attendants
= Alpha and
Omega
Conrad Hilton, at a gala celebrating his life,
was asked, “What was the most important lesson you’ve learned
in your long and distinguished career?”
His immediate answer:
“remember
to tuck the
shower curtain
inside the
bathtub”
Attraction +
attitude +
Execution =
Excellence
“substance” +
attitude +
Execution =
Excellence
<TGW
vs.
>TGR
[Things Gone WRONG/Things Gone RIGHT]
“Rikyu was watching his son Sho-an as he
swept and watered the garden path. ‘Not clean
enough,’ said Rikyu, when Sho-an had finished
his task, and bade him try again. After a weary
hour, the son turned to Rikyu: ‘Father, there is
nothing more to be done. The steps have been
washed for the third time, the stone planters
and the trees are well sprinkled with water,
moss and lichens are shining with a fresh
verdure; not a twig, not a leaf have I left on the
ground.’ ‘Young fool,’ chided the tea-master,
‘that is not the way a garden path should be
swept.’ Saying this, Rikyu stepped into the
garden, shook a tree and scattered over the
garden gold and crimson leaves, scraps of the
brocade of autumn! What Rikyu demanded was
not cleanliness alone, but the beautiful and the
natural also.” —Kakuzo Okakura, The Book of Tea
“What Rikyu
demanded was not
cleanliness alone,
but the beautiful
and the natural
also.”
—Okakura, The Book of Tea
“How to piss
away $500,000
in one easy
lesson!!”
TP:
Brand =
Talent.
Guiding/Clients
She …
Chooses.
Arranges.
“Manages” attitude.
Go-No go on
repeat.
Guiding
F:
“I immediately
establish rapport
with the woman.”
M*:
“Interesting
notion …”
*Very senior executive, with a career in the industry
Giants
attract the
photographers,
SMEs do the work
Bush Lesson #1:
Africa2007.
End.
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOUL I.
DESIGN.
“It’s futile to pretend that
industrial design or styling has
any other function than to
support marketing.”
—Ford executive*
* “I woke up in the middle of the night with a start, and it
suddenly occurred to me that he hadn’t …” (Les Wexner)
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
Franchise Lost!
TP:
“How many of you
really
[600]
crave a
new Chevy?”
NYC/IIR/061205
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 Ohga
“Design is treated
like a religion
at BMW.” —Fortune
“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 of a man-made
creation.”
meaning of design.
—Steve Jobs
“Business people
don’t need to
‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/
University of Toronto
“With its carefully conceived mix of colors and textures,
Starbucks
aromas and music,
is more
indicative of our era than the iMac. It is to the Age of
Aesthetics what McDonald’s was to the Age of
Convenience or Ford was to the Age of Mass
Production—the touchstone success story, the exemplar
‘Every
Starbucks store is carefully designed
to enhance the quality of everything
the customers see, touch, hear, smell
or taste,’ writes CEO Howard Schultz.”
of … the aesthetic imperative. …
-—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness
“Having spent a century or more focused on other
goals—solving manufacturing problems, lowering costs,
making goods and services widely available, increasing
convenience, saving energy—we are increasingly
engaged in making our world special. More people in
more aspects of life are drawing pleasure and meaning
from the way their persons, places and things look and
Whenever we have the
chance, we’re adding sensory,
emotional appeal to ordinary
function.” — Virginia Postrel, The Substance of
feel.
Style:
How the Rise of Aesthetic Value Is Remaking Commerce,
Culture,
and Consciousness
O*
C
*Chief
Design
Officer
“Business people
don’t need to
‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/
University of Toronto
Message (?????):
cannot
Men
design for women’s
needs.
“Perhaps the macho
look can be interesting
… if you want to fight
dinosaurs. But now to
survive you need
intelligence, not power and
aggression. Modern
intelligence means
intuition—it’s female.”
Source: Philippe Starck, Harvard Design Magazine
Gen Xers
designing devices
for 80,000,000
boomers in the
U.S. alone
Conundrum:
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
Westin’s …
Heavenly
Bed
Packaging Power: From Quaker Oats
Listerine
PocketPaks
to …
Packaging, Power of …
1870: animal feed.
1890: “A delicacy for the
epicure, a nutritious dainty for
the invalid, a delight to the
children”
Source: Thomas Hine, The Total Package: The
Evolution and Secret Meanings of Bottles,
Boxes, Cans and Tubes (on Quaker Oats)
“Packages
are
about containing and labeling and
informing and celebrating. They are
about power and flattery and trying to
win people’s trust. They are about
beauty and craftsmanship and
comfort. They are about color,
protection, survival.” –Thomas Hine, The
Total Package
“The lowliest household tool has become an object of color,
texture, personality, whimsy, even elegance. Dozens,
probably hundreds, of distinctively
designed toilet-brush sets are
available—functional, flamboyant,
modern, mahogany. For about five bucks, you can
buy Rubbermaid’s basic plastic bowl brush with caddy, which
comes in seven different colors, to hide the bristles and keep
the drips off the floor. For $8 you can take home a Michael
Graves brush from Target, with a rounded blue handle and
translucent white container. At $14 you can have an OXO
brush, sleek and modern in a hard, shiny white plastic holder
that opens as smoothly as the bay door on a science-fiction
spaceship. For $32, you can order Philippe Starck’s Excalibur
brush, whose hilt-like handle creates a lid when sheathed in
its caddy. At $55 there’s Stefano Giovannoni’s Merdolino
brush for Alessi … Cross the $100 barrier, and you can find all
sorts …” —Virginia Postrel, The Substance of Style: How the Rise of
Aesthetic Value Is Remaking Commerce, Culture, and Consciousness
Design is to
Experiences as
PSF is to
Solutions
Bottom Line.
Design “is” …
WHAT & WHY I
LOVE.
LOVE.
I
LOVE
my …
All Time
No.1
(TP)
Ziplocs
Design “is” …
WHY I GET MAD.
MAD.
THE
DESIGNER OF MY
KRUPPS/ CUISINART
COFFEE-MAKER.
Major Reward!
Wanted:
THE
DESIGNER OF MY
NEW HP
COMPUTER
Wanted:
Design is …
never
neutral.
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!
THE
DESIGN49
Better By Design
The Design49
Tom
Peters/Auckland/30March2005
Better By Design: Tom’s Design49
1. There are only 2 rules.
2. Rule #1: You can’t beat Wal*Mart on price or China on cost.
3. Rule #2: See Rule #1.
4. Econ Survival = Innovate and Sprint Up the Value-added
Chain … OR DIE!
5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE
“SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.
6. Design as Soul-Core Competence #1 is a “cultural imperative,” not
a “programmatic” or “process” or
“throw $$$ at it” issue!
7. CDEs (Culturally Design-driven Enterprises) use DesignExperiences-Dream Merchantry-Lovemarks as the Lead
Dog(s) in the OlympianInnovation-“Strategy”-Value
Proposition Struggle.
8. “Dream Merchant” makes as much sense for IBM or GE or UPS as
for Starbucks!
Better By Design: Tom’s Design49
9. At CDEs, Design is the Heart of the “Emotional Branding”
Process.
10. CDEs wholeheartedly embrace ideas such as “mystery,”
“surprise,” sensuality.”
11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great”
and “Gasp-worthy” and “Passion” and “Love”! (Axiom: Extreme
language breeds extreme products and services.)
12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise =
Crappy enterprise.)
13. CDEs love “strange” and “weird.”
14. CDEs scour the earth for “strange” and “weird” people. (CDEs
know: FREAKS RULE!)
15. CDEs are “extremists.” (KR: “Avoid moderation.”)
16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH!
(We must use non-linear measures!)
Better By Design: Tom’s Design49
17. CDEs seek Discontinuities. (JG: “We don’t want to be the best of
the best, we want to be the only ones who do what we do.”)
18. CDEs are “respectful” of their customers, but not slaves to their
customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: “Listening
to customers” is over-rated! Focus groups suck!)
19. But: “Lead” customers are an entirely different matter!
20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo
Brand”!)
21. CDEs abide by Phil Daniels’ Credo: “REWARD EXCELLENT
FAILURES. PUNISH MEDIOCRE SUCCESSES.”
22. At CDEs the Design Director is at least an Exec Vice President, a
Member of the Senior Executive Team, perhaps on the Board, and
has an office within 10 meters of the CEO (unless she is the CEO).
23. Design Directors at large companies not worth $5,000,000
per year aren’t worth hiring! (DD$21M.)
Better By Design: Tom’s Design49
24. Great Designers are “10,000X” better than “good designers.”
25. At CDEs CFOs are never former CFOs! The CEO always doubles
as the Chief Innovation Officer.
26. CDEs are “Top-line Obsessed.”
27. CDE execs know there is a chasm between “excellent design”
and “game-changer design.”
28. Gasp-worthy design is a moving target!
29. No Broadway shows last forever. So too, great designers!
(Hire them! Pay them! Cherish them! Nurture them! Fire them!)
30. Great design wrestles incessantly with the issue of “cool”
and/versus “usability.”!
31. Designers “get” the stunning principles of Wabi Sabi. (Great
designers side with Chris Alexander against the A.I.A.)
32. CDEs “get” the “feminine side” of life.
Better By Design: Tom’s Design49
33. CDEs Know I: WOMEN BUY EVERYTHING!
34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS
FOR WOMEN.
35. CDEs understand that “We’re getting’ older”—and vigorously
embrace the Boomer-Geezer market.
36. CDEs understand: Boomers-Geezers have “ALL THE MONEY” …
are by and large healthy … and have 20 or so years left!
37. CDEs wonder: Can 28-year-olds design “experiences” for 68-yearolds?
38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-GreenieWellness.
39. “Design-mindfulness” is as apparent in the CDE’s facilities as in
its products-services!
Better By Design: Tom’s Design49
40. “Design mindfulness” is as apparent in HR and
Engineering and Logistics and IS/IT as in NPD.
41. CDEs will settle for nothing less then “beautiful,” “gaspworthy” Business Processes/Infrastructure!
42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!)
(450/8.)
43. “Design-mindfulness”/“aesthetic sensibility” is a requisite
for Every Hire—including waiters and waitresses in Fast Food
outlets and Housekeepers in hotels.
44. Gasp-worthy Design is as essential to “service
companies” as to “manufacturers.”
45. Gasp-worthy design can transform any “commodity,”
including ag!
Better By Design: Tom’s Design49
46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF
THE FIRST ORDER.
47. “Small” is no disadvantage in an Age of Creativity!
48. There is no such thing as a “National Design
Advantage” unless the current school system is Destroyed
& Re-imagined—to emphasize creativity and risk-taking and
acceptance of failure. (Design Mindfulness … the
suppression thereof … typically begins at Age 4.)
49.
How sweet it is!
(If your head is screwed on right.)
EXCELLENCE.
SYSTEMS.
DESIGN.
K.I.S.S.
450/8
“I wanted GE to operate with the
speed, informality, and open
communication of a corner store.
Corner stores often have strategy
right. With their limited resources,
they have to rely on laser-like focus
on doing one thing very well.”
—Jack Welch/Fortune/04.05
Grunge Removal 101
Ellie Mae
Great design =
One-page
business plan
(Jim Horan)
Lisbon/New Biz:
Weeks
to …
Minutes
(!!!!)
Lee’s Rule:
Run It off a
Blackberry!
First Steps: “Beauty Contest”!
1. Select one form/document:
invoice, airbill, sick leave policy,
customer returns claim form.
2. Rate the selected doc on a scale of
1 to 10 [1 = Bureaucratica
Obscuranta/Sucks; 10 = Work of
Art] on four dimensions:
Beauty. Grace.
Clarity. Simplicity.
3. Re-invent!
4. Repeat, with a new selection,
every 15 working days.
Exercise: Take
a
complex financial
analysis you are
presenting—and
convert it into a
number-less story.*
*Shell’s (et al.) “scenario planning”
“One bank is currently
claiming to … ‘leverage its global
footprint to provide effective financial
solutions for its customers by providing
a gateway to diverse markets.’”
—Charles Handy
“I assume that it is just
saying that it is there to
‘help its customers
wherever they are’.”
—Charles Handy
“Seek honest, minimalist management.
Look for companies run by a team that
explains things clearly and briefly. …
You can tell a lot about the firm by
reading an annual report or two. If
management can’t explain the
business in plain English, move
on to another firm. If you see
phrases like ‘creating knowledge-based
value in emerging markets’ … someone
is trying to pull the wool over your eyes,
you lazy Fool. Run.” —Seth Jayson, “Stocks for the
Lazy Investor,” The Motley Fool
Was
“Deposits may be made by a
minor and withdrawals thereof
may be made by a minor
without the consent of a parent
or guardian, neither of whom,
in that capacity, shall have any
right to attach or interfere in
any manner with such deposits
or withdrawals.”
Is
“Minors may make deposits and
withdrawals from their accounts
without the consent or
interference of a parent or
guardian.”
“With ISO 9000 you can still have
terrible processes and products. You
can certify a manufacturer that makes
life jackets from concrete, as long as
those jackets are made according to
the documented procedures and the
company provides next of kin with
instructions on how to complain about
defects. That’s absurd.” —Richard Buetow,
former Director of Corporate Quality for Business
Systems, Motorola
Master the
intricacies of the
system
—Tom DeLay (Al Smith, LBJ)
K.I.S.S.
450/8/BStone
200/3/LBossidy
3/REnrico
3/RHaass
1p/JHoran
Months-minutes/Lisbon
Blackberry/Scott
Repeat/Gerstner
Billboards/Creech
Plain English/Handy
“The art of war does not
require complicated
maneuvers; the simplest are
the best, and common sense
is fundamental. From which
one might wonder how it is
generals make blunders; it is
because they try to be
clever.” —Napoleon on Simplicity, from
Napoleon on Project Management by Jerry Manas.
EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We sell dreams. This
is accomplished by addressing the
half-formed needs in our customers’
heads. By uncovering these needs,
we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’
Sales are the inevitable
result.”
— Judy George, Domain Home Fashions
“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
“We don’t
‘close units,’
we build
homes.”
—Larry Webb,
John Laing Homes
“Soft Skills,
Hard Dollars”
Source: Headline, BigBuilder, September 2006
The Marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’ dreams.
Dreamketing: The art of telling stories
and entertaining.
Dreamketing: Promote the dream,
not the product.
Dreamketing: Build the brand around
the main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
Starbucks = Shaper
of Culture: “At our core,
we’re a coffee company,
but the opportunity we
have to extend the brand is
it’s
entertainment.”
beyond coffee;
—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
C
*Chief Dream Merchant
“Dreams Come True”:
IBM
UPS
“Dreams Come True”:
Harley Davidson
Jim’s Group
UPS
Starbucks
John Laing Homes
Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness,
Friendship and Love
3. The Market for Care
4. The Who-Am-I Market
5. The Market for Peace of Mind
6. The Market for Convictions
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
Six Market Profiles
1. Adventures for Sale/ IBM-UPS
2. The Market for Togetherness, Friendship
and Love/ IBM-UPS
3. The Market for Care/ IBM-UPS
4. The Who-Am-I Market/ IBM-UPS
5. The Market for Peace of Mind/ IBM-UPS
6. The Market for Convictions/ IBM-UPS
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
“The sun is setting on the Information Society—even
before we have fully adjusted to its demands as
individuals and as companies. We have lived as hunters
and as farmers, we have worked in factories and now we
live in an information-based society whose icon is the
We stand facing the
fifth kind of society: the
Dream Society. … Future products will
computer.
have to appeal to our hearts, not to our heads. Now is the
time to add emotional value to products and services.”
Rolf Jensen/The Dream Society:How the Coming Shift from
Information to Imagination Will Transform Your Business
EXCELLENCE.
SOUL II.
THE STORY.
“Storytelling
is the core
of culture.”
—Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
Best
story
wins!
Market Power =
Story Power
C
O*
*Chief Storytelling Officer
“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 to how we work with others.
Companies will thrive on
the basis of their stories
and myths.
Companies will need to
understand that their products are less important than their
stories.” —Rolf Jensen, Copenhagen Institute for Future Studies
Emotion is to
Dreamketing
as Design is to
Experiences
EXCELLENCE.
VALUE-ADDED LADDER III.
ALL YOU NEED IS LOVE.
“Brands have
run out of
juice. They’re
dead.”
—Kevin Roberts/Saatchi & Saatchi
“Brands Are Out of Juice”
1. Brands are worn out from overuse.
2. Brands are no longer mysterious.
3. Brands can’t understand the new consumer.
4. Brands struggle with good old-fashioned
competition.
5. Brands have been captured by formula.
6. Brands have been smothered by creeping
conservatism.
Source: Lovemarks: The Future Beyond Brands, Kevin Roberts
Kevin Roberts:
Lovemarks!
“When I first suggested that Love was the
way to transform business, grown CEOs
blushed and slid down behind annual
accounts. But I kept at them. I knew it was
Love that was missing. I knew that Love
was the only way to ante up the emotional
temperature and create the new kinds of
relationships brands needed. I knew that
Love was the only way business could
respond to the rapid shift in control to
consumers.” —Kevin Roberts/Lovemarks
Brand …………………………………………………. Lovemark
Recognized by consumers ………………. Loved by People
Generic ………………………………………………… Personal
Presents a narrative ………………….. Creates a Love story
The promise of quality ……………… A touch of Sensuality
Symbolic ………………………………………………….. Iconic
Defined ………………………………………………….. Infused
Statement ………………………………………………….. Story
Defined attributes ……………………... Wrapped in Mystery
Values ………………………………………………………. Spirit
Professional …………………………... Passionately Creative
Advertising agency ………………………….. Ideas company
Source: Kevin Roberts, Lovemarks
“When we were working
through the essentials of a
Mystery
Lovemark,
was always at the top of the
list.”
—Lovemarks: The Future Beyond Brands, Kevin Roberts
“Lovemarks are
owned by the
people who love
them.”
—Lovemarks: The Future Beyond
Brands, Kevin Roberts
Tattoo Brand: What %
of users would tattoo the
brand name on their body?
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Your name here … ??
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
“Shareholders very seldom love the brands they
have invested in. And the last thing they want is an
intimate relationship. They figure this could warp
their judgment. They want measurability,
increasing returns (always) and no surprises
(ever). Imagine a relationship with someone like
that!
“No wonder so many brands lost the emotional
thread that had led them to their extraordinary
success and turned them instead into metricmunchers of the lowest kind. Watch for the sign:
HEADS, NOT HEARTS, AT WORK
HERE.” —Lovemarks: The Future Beyond Brands, Kevin Roberts
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Celebrate Craziness!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ ECSTASY
Lovemark
Dreams Come True
Spellbinding Experiences
Services
Goods
Raw Materials
C
O*
*Chief Lovemark Officer
Passion is to
Lovemarks as
Emotion is to
Dreamketing
Up,
Up,
Up,
Up
the Value-added Ladder.
Ladder.2007: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
New (4 of 7) Value-added “Ladder”:
Plays to Women’s Inherent Strengths!
Lovemark/F
Dreams Come True/F
Spellbinding Experiences/F
Gamechanging Solutions/F
Services/F
Goods/M
Raw Materials/M
EXCELLENCE.
DOES MATTER
MATTER?
“What Isn’t
Matter Is What
Matters”
—section title, Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
VA “Teaching Moment”
“Andy pointed to
a molding,
about halfway
up the wall …”
The Boot … and
Timberland
The Tomato/
Farmer … and
Campbell’s
Ladder.2007: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
NEW VALUE
EQUATION.
NEW “C-levels”.
C.E.O.
to
C.D.O.
C
*Chief
O*
Revenue
Officer
C
*Chief e
O*
Xperience
Officer
C
*Chief Dream Merchant
C
O*
*Chief Festivals Officer
C
*Chief Portal Impresario
C
W
M*
*Chief WikiWorld Maniac
C
O*
*Chief Conversations Officer
C
O*
*Chief Lovemark Officer
C
O*
*Chief Seduction Officer
C
O*
*Chief Storytelling Officer
O*
C
*Chief
Design
Officer
C
O*
*Chief talent acquisition Officer
C
O*
*Chief freaks acquisition Officer
C
O*
*Chief quest-meister
C
O*
*Chief Thrills Officer
C
O*
*Chief WOW Officer
*
C
o
Chief DESTRUCTION Officer
C
o*
*Chief Transcendence Officer
C
*Chief
O*
!
Officer
Pause.
“Little
Stuff.”
Up,
Up,
Up,
Up
the Value-added Ladder.
“The Little Things”
Thank
you,
Ann!!!
Thank
You!
FLOWER
POWER
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
Jim Jeffords
oversight!
The …
Remember
what your
mama told
you!*
*It’s first impressions, yo-yo!
The Manager’s Book of Decencies:
How Small gestures Build Great
Companies. —Steve Harrison, Adecco
Servant Leadership
—Robert Greenleaf
One: The Art and Practice of
Conscious Leadership —Lance Secretan,
founder of Manpower, Inc.
“Leaders
‘SERVE’
people.
Period.”
—Anon.
Servant Leadership/Robert Greenleaf
1. Do those served grow as
persons?
2. Do they, while being served,
become healthier wiser, freer,
more autonomous, more likely
themselves to become servants?
Leader as Servant
Decency as the bedrock of
effective corporate culture
Host, Hostmanship,
Welcoming Leader as
metaphor for those who
would seek the
wholehearted engagement
of others
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative)
Decency
(respect,
humane)
Consider: “We do no great things, only small
things with great love.” —Mother Teresa
Consider: “What would happen if we looked
at a customer and saw the face of God in
them? To most people it sounds like a lofty
idea. But if you see the face of God in a
flower, why wouldn’t you see it in the face of
a customer? If we treated customers and
honored the God within them—if we loved
them—we would not need a ‘quality
program’.” —Lance Secretan, founder of Manpower, Inc.
and most recently author of One:
The Art and Practice of Conscious Leadership
“Be kind, for
everyone you meet
is fighting a great
battle.”
—Philo of Alexandria
“We do no great
things, only small
things with great
love.” —Mother Teresa
Questions: What do others think of you? [Are you sure?] What
do you think of you? [Are you sure?] What is your impact on
others? [Are you sure?] What is your impact on others? [Are
you sure?] What is your impact on others? [Are you sure?]
What are the “little things” you (perhaps unconsciously) do that
cause people to shrivel—or blossom? [Are you sure?] What do
you want? [Are you sure?] Are you aware of your changing
moods? [Are you sure?] How fragile is your ego? [Are you sure?]
Do you have a true confidant? [Are you sure?] Do you perform brief
or not-so-brief self-assessments? Do you talk too much? [Are you
sure?] Do you know how to listen? [Are you sure?] Do you
listen? [Are you sure?] What is your style of “hashing things
out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive,
(d) genuinely interested in people, (e) etc? [Are you sure?] Are
you flexible? Have you changed your mind about anything important
in a while? Are you comfortable-uncomfortable with folks on the
front line? Do you think you’re “in touch with the pulse of
things around here”? [Are You Sure?] Are you too
emotional/intuitive? Are you too unemotional/rational? Do you
spend much time with people who are new to you? [Do you think
questions like this are “so much BS”?]
“Sorry, I’ve got to go—the
HR people get on me if I
don’t go do my ‘shake handschat up’ duty”
—president, large
division of large company in the _______
industry
THE PROBLEM
IS RARELY THE
PROBLEM.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE
TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.*
*RMN, M Stewart, WJC, “Scooter” Libby
OFTEN AS
NOT/MORE OFTEN
THAN NOT THE
UNDERLYING
PROBLEM IS NOT
MUCH OF A
PROBLEM.
PERCEPTION
IS ALL THERE
IS. PERIOD.*
*From Whole Foods to IBM to the corner deli
Relationships
THERE
ONCE WAS A TIME WHEN A
(of all varieties):
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF
THE DOWNWARD SPIRAL
THAT RESULTED IN A
COMPLETE RUPTURE.
“WHY NOT
JUST TELL
THE TRUTH?”
—Raymond Carver
POWER WORDS!
“I’m sorry.”
Priorities
“I used to have a rule for myself that at any point in
time I wanted to have in mind — as it so happens,
also in writing, on a little card I carried around with
me — the three big things I was trying to get done.
Three.
Not two.
Not four.
Not five.
Not ten.
Three.”
— Richard Haass, The Power to Persuade
“Really Important
Roger’s
Rule of
Stuff”:
Three!
“Dennis, you need a …
‘To-don’t ’
List !”
“The one thing you need
to know about sustained
individual success:
Discover what you don’t
like doing and
stop
doing it.”
—Marcus Buckingham, The One Thing You Need to Know
SWEET SPOT:
SEEKING THE
DISCOMFORT
ZONE.
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
“Every time we come to a
comfort zone, we will find a way
out.” “No Cloning.” “‘Reinvent
the brand’ with each new show.”
“A typical day at the office for
me begins by asking, ‘What
is impossible that I
am going to do
today?’”
—Daniel Lamarre, president,
Cirque du Soleil
“Little Stuff”
(the end)
(almost)
Conrad Hilton, at a big celebration of his
life, on “the most important lesson you’ve
learned in your long and distinguished
career”:
“remember
to tuck the shower
curtain inside
the bathtub”
“Little Stuff”
(the end)
EXCELLE
ALWAYS
EXCELLENC
ALWAYS.
End.
ART THREE