distinct or … extinct tom peters seminar2000 leading minds/ iir johannesburg 30 august 2000

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Distinct or … ExtinctTom Peters Seminar2000

Leading Minds/ IIR Johannesburg

30 August 2000

Defeated Before The Starter’s Gun!

“Track 4: Managing Organization Change (Helping

Tired and Overworked Professionals with Today’s

Workplace Realities)”

NAPM: “You are the

Rock Stars of the

B2B Age!”

Message2000

“The point is the passion!”

Charles Handy

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of

the Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

“There’s going to be a fundamental change in the

global economy unlike anything we have had since the cavemen began bartering.”

Arnold Baker, Chief Economist, Sandia National Laboratories

“There is probably going to be more confusion in

the business world in the next decade than there has been in any decade

in history.”Steve Case (2-00)

NOW THAT’S B-I-G!

“The period 2000-2002 will bring the single greatest change in

worldwide economic and business conditions since we came down from the trees.”

David Schneider & Grady Means, MetaCapitalism

“We are in a

brawl with no rules.”

Paul Allaire

“Strategy meetings held once or twice

a year” to “Strategy meetings needed several

times a week”

Source: New York Times on Meg Whitman/eBay

The Kotler Doctrine:

70s: R.A.F.(Ready.Aim.Fire.)

80s: R.F.A.(Ready.Fire!Aim.)

90s-Now: F.F.F.(Fire!Fire!Fire!)

John Roth’s “Rules” [Nortel]

1. Our strategies must be tied to leading-edge customers on the attack.

2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.

3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology

and products our customers need.4. Success is achieved by leading change,

not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.

Source: Abridged from The Wall Street Journal (07.25.00)

“The corporation as we know it, which is now 120 years old, is

not likely to survive the next 25 years. Legally and financially,

yes, but not structurally and economically.”

Peter Drucker, Business 2.0 (08.00)

Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work I

The Destruction Imperative!

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.

We buy the engineers and the next generation product. …”

John Chambers, Cisco

Pentium III 800MHz: $42,893.00/#

Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

The [New] Ge Way

DYB.com

“Change the rules before

somebody else does.”

Ralph Seferian, VP, Oracle

“It used to be that the big

ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional

Venture Partners)

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

Headline: “Bank of America to Cut … 10,000 Jobs”

“Middle-level and senior managers are expected to be

the principal targets of the job cutbacks.”

Source: The New York Times (07.29.2000)

108 X 5vs.

8 X 1*

* 540 vs. 8

And Now the Equivalent …

White Collar Revolution!

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

“A bureaucrat is an expensive

microchip.”Dan Sullivan, consultant and

executive coach

“More and more companies these days want to be like Cisco. They

want to focus on their core business and outsource all the superfluous stuff, like human resources, procurement and

accounting.”

Forbes.com, 07.17.00, on ASPs

“Assetless Company”

John Bryan, CEO, on selling all Sara Lee’s manufacturing

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

“The virtual corporation is research, development, design, marketing, financing, legal, and

other headquarters functions with few or no manufacturing

capabilities – a company with a head but no body.”

Richard Rosecrance, The Rise of the Virtual State

“We own all the intellectual property, we farm out all the

direct labor.”

Jim McDonnell, VP, IBM

RR on “Assetless” [J.B.] Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

N.W.O.

CEO, $14 Billion Corp.: 80+% on the road;

“ ‘Corporate’ ‘Head’quarters is in my head and on my

laptop, wherever I happen to be.”

Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the

Coming Century

Hong Kong: Prototypical “Virtual State”

83% Service8% Mfg.

Source: Richard Rosecrance, The Rise of the Virtual State

“The new dependence on productive assets located within someone else’s state represents

an unprecedented trust in the integrity and peacefulness of strangers.”

“In its pure form – an ideal model toward which many states are tending – the virtual state

carries within it the possibility of an entirely new system of world politics.”

Richard Rosecrance, The Rise of the Virtual State

“The virtual corporation is research, development, design, marketing, financing, legal, and

other headquarters functions with few or no manufacturing

capabilities – a company with a head but no body.”

Richard Rosecrance, The Rise of the Virtual State

“We own all the intellectual property, we farm out all the

direct labor.”

Jim McDonnell, VP, IBM

“The Futility of Size …

“[Regarding size] the new process of virtualization fully exerts itself.

Virtualization is the recognition that territorial size does not solve

economic problems. … Economic access must become the substitute for

economic domain.”

Richard Rosecrance, The Rise of the Virtual State

TP: Skill at creating, exploiting, and exiting crucial alliances beats

ownership of fixed assets.

“At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.”

Richard Rosecrance, The Rise of the Virtual State

And the Question …

$70,000

“Elementary and high school teachers should be

rewarded as patient creators of high-value capital in the

United States and elsewhere.”

Richard Rosecrance, The Rise of the Virtual State

“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)

Brand Inside

Brand Work: The Professional Service

Firm Model & The WOW Project

So what will be the Basic Building

Block of the New Org?

New OrleansApril 2000:

NAPM

Message: You are Re-invention Evangelists!

You are the … Rock Stars

of the B2B Age!

ChicagoNovember 1999:

HRMAC

“support function” / “cost center” / “bureaucratic

drag”

or …

Are you “Rock Stars of the

Age of Talent”

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

Every job done in W.C.W. is also done

“outside” … for profit!

E.g.: “CROs”/Contract Research Organizations

Covance [7,600 employees in 17 countries]

QuintilesParexel

ChemNavigator.comEtc., Etc., Etc.

Source: Invivo, Start-Up

Credo

“WORK WORTH

PAYING FOR”

The Raw Material …

The WOW Project!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”

CEO, F100 financial services company (10-98)

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations” (10/26/98)

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Brand Inside

Brand You: Distinct …

or Extinct

“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by

independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.”

Thomas Malone and Robert Laubacher

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

Minimum New Work SurvivalSkillsKit2000

MasteryRolodex Obsession

Finishing SkillsEntrepreneurial Instinct

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

Minimum New Work SurvivalSkillsKit2000

Sense of Humor!Mastery

Networking ObsessionFinishing Skills

Entrepreneurial InstinctMaster of Improvisation

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

[Cluetrain Manifesto

Relax!Have a sense of humor!

Find your voice and use it!Tell the truth!Don’t panic!

Enjoy yourself!Be Brave!

Be curious!Play more!

Dream always!Listen up!Rap on!]

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

[“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)]

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

Stan Davis & Christopher Meyer, futureWEALTH

Training Y2K

Anytime, anywhere!

Whatever!

Concocted by the employee [“Training Account”]

“The average knowledge worker will outlive the average employing organization. This is the first time in history that’s happened. … So

the center of gravity of higher education is shifting from the education of the young to the

continuing education of adults.”

Peter Drucker, Business 2.0 (08.22.00)

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

Brand Inside

Brand Talent: The Great War for Talent

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“The market’s being divided up right now. We’re in a

tough competition [with the U.S. and the U.K.] for

the best brains.”Gerhard Schroeder, on Germany’s new

tech immigration policy[Frankfurter Allgemeine/06.02.00]

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

The Talent Nine

Obsession! Greatness!

Performance!Pay!

Youth!Diversity!Women!Weird!

Opportunity!

1. Obsession

Talent = All Consuming

From “1, 2 or 3” [JW] to … “Best talent in each

industry segment to build best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

“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

“We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property.”

Art Reidel, CEO, Pharsight

GE Is a “Talent Machine”

“In most companies the talent review process is a farce. At GE, Welch and his two top HR people visit each division for

a day. They review the top 20 to 50 people by name. They talk about Talent Pool

strengthening issues. The talent review process is a contact sport. It has the intensity and the importance of the

budget process at most companies.”Ed Michaels, War for Talent (05.17.00)

2. Greatness

Only The Best!

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH

INITIATIVEE.g.: COO of IKEA to head

international expansion

Ed Michaels, War for Talent (05.17.00)

3. Performance

Up or out!

“We believe companies can increase their market cap 50 percent in 3 years. Steve

Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put

more talented, higher paid managers in charge. He increased

profitability from $25 million to $80 million in 2 years.”

Ed Michaels, War for Talent (05.17.00)

4. Pay

Fork Over!

“Technically savvy and innovative people have become unbelievably

expensive.”

Peter Drucker, Business 2.0/08.2000 [Drucker adds that there’s no reason for

them to be on anyone’s payroll.]

Pursuing the $3 Million Dollar Engineer!

John Chambers “Gets it”!!

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

Pentium III 800MHz: $42,893.00/#

Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

“Top performing companies are two to four times more likely than the rest to pay what it

takes to prevent losing top performers.”

Ed Michaels, War for Talent (05.17.00)

5. Youth

Grovel Before the Young!

“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s

the relentless rise of the quasi-adolescents who wield them.”

Michael Schrage

“The Triumph of the Brainiac: In today’s biotech,

dot-com world, nerds rule, and it all starts in

high school”

Cover story, The New York Times Magazine (06.04.00)

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An

outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We

used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in

their careers.”

Ed Michaels, War for Talent (05.17.00)

“Talent” and a $2T enterprise??????

6. Diversity

Mess Rules!

“Where do good new ideas come from?That’s simple! From

differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to

mix ages, cultures and disciplines.”

Nicholas Negroponte

“Diversity defines the health and wealth of nations in a new century. Mighty is the

mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the

rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps

isolation. It spawns creativity, nourishes the human spirit, spurs economic growth

and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

“Capitalism and the conditions for creating wealth have changed in ways that play to the strengths of hybrid

individuals, organizations and nations. And those that wish to profit from changing economic conditions must view hybridity as their first and best option. This bold

claim warrants an explanation. The ability to apply knowledge to new situations is the most valued

currency in today’s economy. Highly creative people … are misfits on some level. They tend to question

accepted views and consider contradictory ones. This appreciation defines the mongrel mentality. Strangers

instinctively question things that natives take for granted. Many things strike them as odd or stupid. …”

G. Pascal Zachary, The Global Me

7. Women

Born to Lead!

Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it

easier to meet new people? Who asks more questions in a conversation? Who is a better

listener? Who has more interest in communication skills? Who is more inclined to get involved?

Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &

Susan Kane-Benson

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

8. Weird

The Cracked Ones Let in the Light!

“We are in a

brawl with no rules.”

Paul Allaire

“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

What Do We Do with Him?

“He grew his hair long, played guitar in a rock band, chased

girls, got into trouble. At age 17 he was flogged by his house

master, who described him as ‘the most difficult boy I’ve ever

had to deal with.’ ”

Elect Him Prime Minister

Tony Blair*

*talk/May 2000

“Whoever is the most impertinent

has the best chance.”

W.A. Mozart

“Well-behaved women rarely make history.”

Anita Borg, Institute for Women and Technology

Axiom: Never hire anyone without an aberration in their

background. (Find the One Ton Cookie Man!)

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Human Enablement Department

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

Talent = Brand

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

“This is all I ‘know’ in the

world!”Tom Peters

I. THE IDEA

“4Fs”: Find a

Fellow Freak

Faraway

World’s Biggest Waste …

Selling “Up”

Recruit [a/a = 1] Friend [in the Boondocks]

Skip [Flip off] the Hierarchy!Recruit [A]nother Friend!Do Some Cool Shit! Fast!

Surround the Bastards [with WOW WINS/ results]!

Heart of the Matter

F2F!*

*Freak to Freak … or K2K [Kook to Kook]

“Lead” customers!

K2K redux!

And for the 6-Person Group??

Send one “Cool Dude” out to

Find Something Cool, work with a Cool Customer, etc. [The “Micro-Skunkworks Strategy”]

Create a Personal University of Weird!

II. THE NUGGET

Do Something. Do Anything.

Get Going.Now.

Opportunity ALWAYS Knocks

VFCJ* “Strategy”

*Volunteer For Crappy Jobs

Is It …

Wrestle the damn Safety Manual into line with the ridiculous new government

regulationsegs?

Or …

A stealth opportunity to address the War for Talent via … a thoroughgoing review

of how safety and environmental issues contribute to making this a

Great Place to Work?

Is It …

Fix these bloody customer problems that have cropped up with the new 2783B?

Or …

A chance to work with a hotshot, young division GM on …

using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the

heart of the Product Design Process?

Bottom Line …

ANYTHING CAN BE THE RAW

MEAT FOR YOUR CRUSADE!

III. THE TOOL

Prototyping Mania!

Culture of Prototyping

“Effective prototyping may be

the most valuable core competence an innovative organization can

hope to have.”

Michael Schrage

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

“You can’t be a serious innovator unless and until you are ready,

willing and able to seriously play. ‘Serious play’ is not an oxymoron;

it is the essence of innovation.”

Michael Schrage, Serious Play

“Success is the ability to go from failure to

failure without losing your enthusiasm.”

Winston Churchill (as quoted by John Peterman)

Secret:

Creating the …

Rhythm of Prototyping

IV. THE SOFT STUFF 1

Show Up!Connect!

Engagement!

“You all know all the notes. But can you make them believe you? Can you play & convey

like love itself? Abject despair?”

Source: Ken Silvia, paraphrasing, on Yo Yo Ma’s Master Class at the World Cello Congress 2000

Message2000

“The point is the passion!”

Charles Handy

Engagement!

“It was much later that I realized Dad’s secret. He gained respect by giving it. He

talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a

bishop or a college president. He was seriously interested in who you were

and what you had to say.”

Sara Lawrence-Lightfoot, Respect

V. BOTTOM LINE

The Enemy!

Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

Reprise: Brand Inside

The White Collar Revolution & The Web [Destruction Rules!]

PSF as Building Block [Work Worth Paying For]

Work Worth Paying For = WOW Projects!

Brand You [Everybody!]

The Great War for Talent!

Boss-free Implementation of STM! [F2F]

N.W.O.

CEO, $14 Billion Corp.: 80+% on the road;

“ ‘Corporate’ ‘Head’quarters is in my head and on my

laptop, wherever I happen to be.”

N.W.O.: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are

for fools.”)• I love “Yes men”• Self-contained

• Seat 9b, Varig 233• Address: Rick@Corp.com• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal

as breathing• I love Misfits!• I love partners

Translation• Flexible• Fluid-Shape shifter• Fast [Net speed]• Informal-Peer oriented• Talent Obsessed• Alliance Mania• Entrepreneurial-Meritocratic• Intellectual Property Is All

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Re-invent with E-Commerce!

S3: Fighting Back via Systems integration!S4: Design Matters!

S5: It’s the Experience!S6: Women Rule!

S7: Embracing an Age of Self-Determination!S8: Think Global!

S9: Brand Power & Summary!

Forces @ Work II

The Commodity Trap

In the Beginning …

“The audit has become a commodity.”

Big 5 audit partner to TP

Quality Not Enough!

“Quality as defined by few defects is becoming the

price of entry for automotive marketers

rather than a competitive advantage.”

J.D. Power

Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

What’s Special?

“Customers will try ‘low cost providers’ because the Majors have not given them any clear

reason not to.”

Leading Insurance Industry

Analyst (10-98)

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

“The ‘surplus society’ has a surplus of similar companies, employing similar

people, with similar educational backgrounds, working in similar jobs,

coming up with similar ideas, producing similar things, with similar

prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

“When we did it ‘right’ it was still pretty

ordinary.”

Barry Gibbons on

“Nightmare No. 1”

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 1:

Lead the Customer!

“The customer is a rear view mirror, not a guide to the future.”

George Colony, Forrester Research

“If you worship at the throne of the voice of the customer, you’ll get only

incremental advances.”Joseph Morone, President, Bentley College

“These days, you can’t succeed as a company if you’re consumer led –

because in a world so full of so much constant change, consumers can’t

anticipate the next big thing.

Companies should be idea-led and consumer-

informed.”Doug Atkin, partner,Merkley Newman Harty

“Our strategies must be tied to leading edge

customers on the attack. If we focus on the defensive

customers, we will also become defensive.”

John Roth, CEO, Nortel

Lucent Tanks!

Cause(s): (1) Listening to BIGGEST, SLUGGISH

customers. (2) Failing to exploit the Web internally or externally

Source: Business Week (08.07.00)

Message …

Biggest is not always [often?] most beautiful!

F2F Rules: How’s your “freaks” portfolio?

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 2:Use E-Commerce to

Re-invent Everything!

OVERVIEW

www.cyveillance.com

08.12.2000/0509AM:

2,337,711,647

2X = 100 days (Internet traffic)

2X = 9 months (network capacity)

Source: Red Herring (1-00)

Tomorrow Today: Cisco!

87% of $20B*(Cisco Connection ONLINE)

Save $500M(service and tech support)

* = $48,000,000 … per DAY

Oracle: Service Call Center

$300.00 per transaction to $1.50

Savings: $550,000,000.00

Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B addnl this year]

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the

Web per se.

Schwab: $25B per week in asset transactions [80% of trades]

[Transition to e.Schwab: Rev. fell, then quickly doubled]

COMMUNITY!/ COMMUNITY SERVICES!

Tomorrow Today: Cisco!

87% of $20B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

Chat Rooms/Collaborative Design ($1B “free” consulting)

Cherry PickingVertical Markets

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut

Hook: community services (database, catalogs, forums,

industry job bank, etc.)

B2C Success

“Genuine brand strength”

“Build community”Source: Geoffrey Moore

Community …

Somewhat mediated, segmented chat rooms (must be “managed”/ seeded)User-friendly technical/ professional info

Industry “intelligence”Some very timely stuff/ attractors

Hotlinks by the gazillion (to professional and unrelated stuff)

Expert/ advisor opinions (info, chats, etc.)Opportunity for users to build

own Web page & create own communities

Cisco’s Secret

Trust (openness to partners)

CUSTOMER PERSPECTIVE:

D.I.Y./ CONTROL

Welcome to

D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as

a business go down and

perceived service goes up because customers are conducting it

themselves.” Ray Lane, Oracle

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my universe!

I’net Freedom Manifesto

I AM IN CHARGE HERE! I CAN DO WHATEVER

I NEED OR WANT TO DO WHENEVER I WANT

TO DO IT!

I Can Immediately …

Shop for $1,000,000 homes or $1.95 office supplies, at best price and with best advisors

Manage all my financial dealingsWork with my doc, or world’s best medical experts, or

humble support groups, on any health issueRecruit talent to help me with any project

Develop professional docs collaboratively, with anyoneShare my ideas with the worldChat with anyone, anywhere

Research anythingTake a course on any topic, from cooking to software

Stay in touch with my 90 year old momPlay a gajillion games to while away the time

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 Nordstrom and Jonas Ridderstrale, Funky Business

Patricia Seybold’s “Basics”:The E-Customer Bill of Rights

Don’t waste my time!Remember who I am!

Make it easy for me to order and procure service!

Customize your products and services for me!

Source: customers.com

“In the network economy, the Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front,

store interior, sales staff and post-sales support all rolled into one.”

Jakob Nielsen, Designing Web Usability

RADICAL STRATEGIES

REQUIRED

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

GE Power Systems/GEPartsEdge

Was: 2 weeks to analyze a major generator problem

Is: 1 hour

“One cannot be tentative about this. Excuses like ‘channel

conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you

never heard of 24 months ago.”

Jack Welch [07.00/Forbes.com]

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

ACT NOW, ACT FAST,

KEEP ACTING

“It’s better to be first with less than last with more. Success on

the Web isn’t just about time to market, it’s also about

‘time to learning.’ ”

Jeff Levy, eHatchery

SUMMARY: REINVENT

EVERYTHING

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

WebWorld = Everything

Web as a way to run your business’ innardsWeb 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 LifeWeb = Everything (P.D. to after-sales)

Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything

as next door neighbor

ERP + ASP + DBM + DW + B2B + Duct Tape.*

*and a vision

“There is no use trying,” said Alice. “One can’t believe impossible things.”

“I daresay you haven’t had much practice,” said the Queen. “When I was

your age, I always did it for half an hour a day. Why, sometimes I’ve

believed as many as six impossible things before breakfast.”

Lewis Carroll

The Web …

A DREAMER’S MEDIUM!

“It” is real! It is “Life and Death”!Dream BIG!

Start Now! Study Hard! Play Hard! Play Fast! Go on Offence!

Hire great folks! (They ain’t cheap. They are young!)

Don’t cut corners on infrastructure!

Rem: “Age of the Never Satisfied Customer”!

We ain’t seen nothin’ yet!

Getting Right Down to Brass Tacks …

Bricks & Mortar?

Bricks &Clicks?

All Clicks All the time?

#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING

TO GIVE UP THE IN-STORE SHOPPING

EXPERIENCE FOR THE INTERNET IS JUST THAT.

AN IDIOT.

#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO

BE HANGING OUT IN STORES 15 YEARS FROM

NOW IS JUST THAT. AN IDIOT.

TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE OF

THE ABOVE TWO STATEMENTS IS TRUE IS …

THE BIGGEST IDIOT OF ALL.

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Norwest/ Wells

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 3: Fighting Back via

Systems Integration!

THE CASE

B2B

1999 – 2004: 50X

2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)

T

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

Solectron, IBM, Nortel, Matsushita, Seagate, Etc.

E2Open.com

$700B

B2B = No.1

CarStation (auto-body shops), ChemConnect (chemicals),

Collabria (commercial printing), DigitalThink (corporate training), E-Steel (steel), Medibuy (medical

supplies), Portera (knowledge workers), Etc., Etc., Etc., Etc.

And …

THE WORLD: Alibaba.com*

200,000 members in 194 countries

*China

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

“Net Nips Real Estate Sales Fees”

Headline, p.1B, USAToday 07.05.00*

*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

“EAT THIS: FoodGalaxy.com’s Marty Horn wants to help

‘independent restaurants’ buy smarter. That’s got the big

distributors mighty stewed.”Headline, Forbes.com 07.17.00

THE RESPONSE

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

RR on “Assetless” [J.B.] Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

“Systems Integrators” Unite [And Conquer]

Cisco’s winning strategy

[USAToday 07.11]: “Become the ‘Go-to’ Systems

Provider”

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

“Customer Satisfaction” to “Customer Success”

“We’re getting better at [Six Sigma] every day. But we really

need to think about the customer’s profitability. Are customers’

bottom lines really benefiting from what we provide them?”

Bob Nardelli, GE Power Systems

GE’s New Six Sigma Approach

Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s World.Source: Steve Kerr, VP, GE

E.g., United Technologies

UTC/Otis + Carrier: “boxes” to “integrated building systems”

P&W: boxes to major aircraft subsystems

Service-Systems Paradox: Cut & Grow

Automate 75% of “commodity” service activities

and/but

Add value via people-intensive “strategic/systems-integration

activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 4:

Design Matters!

And Tomorrow …

“Fifteen years ago companies competed on price. Now it’s

quality. Tomorrow it’s design.”Robert Hayes

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

Object of Desire!

“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in

point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a

sculpture, an object of desire, something that you look at.”

Katherine McCoy, Michael McCoy, Illinois Institute of Technology

Design as Soul

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul of a

man-made creation.”Steve Jobs

Message: “Great - Cool Stuff” Matters.

Great & Cool Trumps Not-So-Great &

Ho Hum!

Message iMac: “Great Stuff” Takes

Guts!!

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

The I.D. [International Design] Forty*

Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …

Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …

Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.

* List No. 1, 1999

[ Design Moments!

Shopping cart =

2X heavy items

Source: Wall Street Journal (11-24-99) ]

Message:“Services” are Not Intangible!

You “give off” hundreds of design cues … daily!

YOU ARE A DESIGNER!

T.T.D.sThe next slide is the first of many

“T.T.D.” activities. I.e.: Things To Do, shorthand forms of training

exercises I use. Also: Many of these T.T.D. slides, as

well as most of the “Stuff That Matters” section, have accompanying Notes. (Use Normal View to access.)

Tom Peters

T.T.D./“Beauty Contest!”

1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim

form.2. Rate it on a 1 to 10 scale

(1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity.

3. Repeat … every 15 days.

T.T.D./Design “Awareness”!

STEP No. 1: NOTEBOOK![Start recording the awesome

and the awful.]

“Sometimes I have episodes of wild fury in rental cars. It’s not road

rage. It’s more like design rage.”

Susan Casey, www.ecompany.com

Most Recent Entry/06.22.00

The “manual …

HP LaserJet 1100

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 5:

It’s the Experience!

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is 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

“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 …

StoryAdventure

Smile Focus

PlotPassion

T.T.D.

WHAT’S THE [your] PLOT?

“This is the end of the pure product era. For instance, car

makers are beginning to understand that the car is a

platform for delivering services that drive the customer

experience.”Carly Fiorina, HP @ Comdex ’99

“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct.

Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a

rolling wireless portal on wheels, connecting you to your kitchen, your bank,

your kids, your office.”

Business 2.0, “Four Wheel Drive,” 08.22.00

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 6:

Women Rule!

$4.8T > Japan

9/27.5/3.6T > Germany

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 50+% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Not!!

“Year of the Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“What kind of car does Mommy want?”

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

Not a Morality Play!

“It is critical that we all understand that IBM is not marketing to women

entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge

opportunity.”

Cherie Piebes

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

Psssst! Wanna see my

“pornography” collection?

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. [PLEASE: THINK ABOUT IT!]

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-

Determination!S8: Think Global!

S9: Brand Power & Summary!

Brand Outside

Strategy 7:Embracing an

Age of Self-Determination

“We are in a

brawl with no rules.”

Paul Allaire

The [New] Ge Way

DYB.com

The Individual

“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by

independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.”

Thomas Malone and Robert Laubacher

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

Credo

“WORK WORTH

PAYING FOR”

You are the … Rock Stars

of the B2B Age!

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

The Work

Enter …

The WOW Project!

Recruit [a/a = 1] Friend [in the Boondocks]

Skip [Flip off] the Hierarchy!Recruit [A]nother Friend!Do Some Cool Shit! Fast!

Surround the Bastards [with WOW WINS/ results]!

Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

Ann Richards’ Dogma

Show up!

Know your story!

Put yourself at risk every day!

The Organization:

Seller’s [Talent] Market

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An

outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We

used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can –

and must – leverage the younger generation very early in their careers”

Ed Michaels, War for Talent (05.17.00)

Dudes With ’Tude“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

“Diversity defines the health and wealth of nations in a new century. Mighty is the

mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the

rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps

isolation. It spawns creativity, nourishes the human spirit, spurs economic growth

and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

The Market: Fighting

Sameness with Distinction

Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

Web World: POWER TO

THE PEOPLE

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“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 Nordstrom and Jonas Ridderstrale, Funky Business

Women Get Respect … and

Take Charge

$4.8T > Japan

9/27.5/3.6T > Germany

The Patient Gets Respect … and Takes Charge

“Partner for Good Health”

vs.

“Savior for the Sick”

Source: NPR/VPR 08.15.00

“Medicine looks likely to change more in the next 20 years than it has in

the last 200.”

British Medical Journal (11-11-99)

“Online Medical Records Seen Empowering

Patients”

Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K

patients @ CareGroup

Patient-centric* Health Care

Wellness (Fix to prevent.)

Partnership (“Tour guide” model.)

Web (Info and support group availability

RESPECT! (Mutual.)

WOMEN RULE!*Not: HMO-centric, Employer-centric, Insurer-

centric, Doc-centric

The Poor Get Respect

Grameen Bank/Bangladesh

“It’s not people who aren’t credit-worthy. It’s banks that aren’t

people worthy.”$2.3B to 2.3M [typical 1st loan: $15.]

98% recovery rate [94% to women!]

1/3rd out of poverty; 1/3rd up to non-poverty threshold

Muhammad Yunus, Banker to the Poor

MBWA, Grameen Style!“Conventional banks ask their clients to come

to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people

should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential

that [those setting up a new village Branch] have no office and no place to stay. The reason

is to make us as different as possible from government officials.

Grameen Bank: “Borrowing Group”

Self-formed. 5 members. Oral test. Group approves all loan requests, but individual liability.

(8 Groups to a “Center.”) Weekly payment, 1-year loan (5% to Group Fund.

If one defaults, no more loans to Group). No legal instrument.

1st loan about $15 (housing loan after 3 successful 1-year loans; property to wife’s name).

Lend to two, then six weeks later two more, Chairman last.

Process aims to exclude non-resilient people.

“The Grameen loan is not simply cash. It

becomes a kind of ticket to self-discovery and

self-exploration.”

Muhammad Yunus

Sooooo …

Is your strategy centered around customer-client empowerment & self-

determination? Hint: This means letting go

of traditional sources of power!

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 8:

Think Global!

THE EIGHT “RULES”

Rule #1

If “it” is [truly] good … then it’s good

enough for … THE WORLD.

Rule #2

There’s no such thing as “too small to

be global.”[GET A LIFE.]

Rule # 3

When?

Now.

Rule #4

Hang out … vigorously!

Rule #5

Seek Talent!Send Talent!

Rule #6

Glom onto a [modest-sized] partner … who

loves/ “gets” you!

Rule #7

Tailor!! [But don’t give

away the store.]

Rule #8

Phil Crosby notwithstanding,

you’ll not [likely] “get it right the first time”!

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Brand Outside

Strategy 9 & Summary:

BRAND POWER!

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take

up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology.

Stories create the emotional context people need to locate themselves in a larger experience.”

“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

“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication

highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the company’s

attitudes and values becomes the decisive parameter for success. It

demands that you find out who you are as a company.”

Jesper Kunde, Corporate Religion

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

T.T.D./Assignment Y2K

Write an essay on “Who we are.”*

* Jesper Kunde, Corporate Religion

T.T.D.: “How can I know what I think till I see what I say”*

Exercise : Write copy for a bookmark! (Etc.)

*Graham Wallas, The Art of Thought

Brand Outside

Reprise

Context: “No” to “inevitable commoditization”S1: Lead the Customer!

S2: Re-invent with E-Commerce!S3: Fighting Back via Systems integration!

S4: Design Matters! S5: It’s the Experience!

S6: Women Rule! (and the elderly)S7: Embracing an Age of Self-Determination!

S8: Think Global!S9: Brand Power & Summary!

Lead the Customer: Why Tough

Guts!Failures!

Re-invention via ecommerce: Why Tough

Total commitment to total enterprise [and supply

chain] reinvention!

Systems Integration: Why Tough

Completely new view of what a “product” is.

Design: Why Tough

True-believer-dom-shipEncompassing/Cultural

Experience: Why Tough

Total Reorientation

Women’s Market: Why Tough

EncompassingAttitude

CULTURAL!

Self-Determination: Why Tough

Cede Control

Going Global: Why Tough

Attitude!Patience!

Brand Power: Why Tough

Way of LifeForever!

Passion Rules!Touches Everything!It Am Me [Personal!]

Message :

Not for the Faint of Heart!

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Leadership

Passion Rules!

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in

recruits.”

Burke Stinson, AT&T

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

Talent “War,” Marketplace “War”

“The successful company has to create an environment that imbues

its employees with a sense of passion.”

Joe Nocera, eCompany, on David Pottruck

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

“It is necessary for the President to be the

nation’s No. 1 actor.”FDR

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

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