tom peters’ new business2002: rules for re-invention dallas/06.04.2002
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Tom Peters’ New Business2002:
Rules for Re-invention
Dallas/06.04.2002
All Slides Available at …
tompeters.comNote: Lavender text in this file is a link.
NEW BUSINESS:
NEW CONTEXT
All Bets Are Off.
“There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of
change will only accelerate.”Steve Case
The Destruction Imperative.
Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms
listened to their customers, invested aggressively in technologies that would provide their customers more
and better products of the sort they wanted, and because they carefully studied market trends and
systematically allocated investment capital to innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind, but how to get the old
ones out.”Dee Hock
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen.
Axiom (Hypothesis): We need Masters of Discontinuity/
Masters of Ambiguity … in discontinuous/ambiguous
times.
20 of 267 of top 10*
*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10
categories. (The “billion-dollar” problem.)
Source: Advertising Age 01.21.2002/BofA Securities
Primary Obstacles to “Marketing-driven Change”
1. Fear of “cannibalism.”2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.”3.Creating “sustainable advantage.” Source: John-Marie Dru, Disruption
“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo
to create an unsustainable series of competitive advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable
advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the
only level of competition.”Rich D’Aveni, Hypercompetition: Managing the Dynamics of
Strategic Maneuvering
“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the
message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,
major consumer goods company
BEWARE “EVAPORATING DISTINCTION”*: Formerly (legitimately) “Great Products” that have become “A Little Bit
Better.”*Only “We” can appreciate The Difference
“Generally, disruptive technologies underperform
established products in mainstream markets. But they have other features that a few
fringe (and generally new) customers value.”
Clayton Christensen, The Innovator’s Dilemma
Jim & Tom. Joined at the
hip. Not.
Built to Last v. Built to Flip“The problem with Built to Last is that it’s a
romantic notion. Large companies are incapable of ongoing innovation, of
ongoing flexibility.”“Increasingly, successful businesses will be ephemeral. They will be built to yield
something of value – and once that value has been exhausted, they will vanish.”
Fast Company (03-00)
“But what if [former head of strategic planning at Royal Dutch Shell] Arie de Geus is wrong in suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of time, rather than to live forever.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a
timely death. … We believe that most corporations will find it impossible to
match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in
1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
NEW BUSINESS: NEW TECH
The White Collar Revolution.
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks.
Hans Ohlin (50 yr old chief of coronary care, Univ of
Lund/SW) : 620. Lars Edenbrandt’s
software: 738.
*Only this time it matters!
“Most physicians believe that diagnosis can’t be reduced to a set of generalizations—to a ‘cookbook.’ … How often does my intuition lead me astray? The radical implication of the
Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawed—it causes more mistakes
than it prevents.” —Atul Gawande, Complications
“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take
over the world.” – Stephen Hawking, in the German magazine Focus
IS/IT/Web … “On the Bus” or “Off the Bus.”
100 square feet
The Real “News”: X1,000,000
TowTruckNet.com
Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
WebWorld = Everything Web as a way to run your business’s innards
Web as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of 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
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the
number of people they employ … all of that is wrong for running an
ebusiness.”Ray Lane, Kleiner Perkins
Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams
you could never have dreamed
before!
NEW BUSINESS: NEW VALUE
PROPOSITION
The “PSF Solution”:
The Professional Service Firm Model.
So what will be the Basic Building
Block of the New Org?
Every job done in W.C.W. is
also done “outside”
…for profit!
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
TP to NAPM: You are the …
Rock Stars of the
B2B Age!
eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
Model PSF …
(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!
“Typically in a mortgage company or financial services company, ‘risk
management’ is an overhead, not a revenue center. We’ve become more than that.
We pay for ourselves, and we actually make money for the company.”—Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo
Home Mortgage (Source: sas.com)
The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions
Imperative.”
The Big Day!
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
Gerstner’s IBM: Systems Integrator of
choice. Global Services:
$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house programs/products. (BW/12.01).
AT&T: President David Dorman: Back to long distance … but with “bundles of lucrative corporate services” for the likes of Merrill
Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers
(50%)—hold on to high enders.
Source: BW/05.20.2002
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems
Keep In Mind: Customer Satisfaction
versus Customer
Success
Was: “Big Iron” Transformer Dudes Division. Is: Air Traffic Controllers of Electrons.
Was: Bunch of Guys Who Make Circuit Breakers Division. Is: GE Industrial Systems.
“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
“No longer are we only an insurance provider. Today,
we also offer our customers the products and services that help them
achieve their dreams, whether it’s financial security, buying a car, paying
for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,
Farmers Group
Omnicom: 57% (of
$6B) from marketing services
Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2)
Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer
Success.”
Model2002/3/4/5/??
Dell* + IBM** = Magic
*Cut (ALL) the bullshit
**Add (LOTSA) “soft”/“integrative”/“experiences” value
The …
Solutions25.
1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.)9. Solutions = “Our ‘culture.’ ”10. Partner with B.I.C. (Best-In-Class). Period.
“In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand
armed against them with pencils and paperwork, and archaic computer systems that don’t
talk to each other.”Boston Globe (09.30.2001)
“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez & Rene Tissen, Zero Space: Moving Beyond Organization Limits.
12. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.13. Project Management can come from any function.14. WE ARE ALL IN SALES. PERIOD.15. We all invest in “wiring” the customer organization.16. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)17. We use the word “PARTNER” until we all want to barf!18. We NEVER BLAME other parts of our organization for screw-ups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”
21. We believe in “High tech, High touch.”22. We are DREAMERS.23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)24. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!
Innovation & Speed’s “New Basics”*1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems.” IS—at home & throughout supply chain. Web based.6. F-L-A-T.*Innovation, Speed, CRM, “Experience”/ “Solution” demand this
“Supply Chain” 2000:“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized
home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My
Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe
Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.”
Red Herring (09.2000)
KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.
WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.
NEW BUSINESS: NEW BRAND
A World of “Experiences.”
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride
through small towns and have people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
“The [Starbucks] Fix” Is on …
“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is
that place that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”Source: Jean-Marie Dru, Disruption
The “Experience Ladder”
Experiences Services
Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
Message: “Experience” is the
“Last 80%”P.S.: “Experience” applies to all work!
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service
economy): $10.001990: Party @ Chuck E. Cheese
(experience economy) $100.00
It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.WDCP: $150/“problem beaver”; $750-$1,000 for flood-control
piping … so that beavers can stay.
Source: WSJ/05.21.2002
The “Experience Ladder”
Experiences Services
Goods Raw Materials
Ladder Position Measure
Solutions Success(Experiences)
Services Satisfaction
Goods Six-sigma
The “Soul” of “Experiences”:
Design Rules!
Design’s place in the universe.
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
“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
Bottom Line.
Design “is” … WHAT & WHY I LOVE.
LOVE.
All Time No.1 (TP)
Ziplocs
Westin’s …
Heavenly Bed
Design “is” … WHY I
GET MAD. MAD.
Wanted: THE DESIGNER OF MY
RADIO SHACK PHONE. Major
Reward!
Design is never neutral.
Hypothesis: DESIGN is the principal difference between love and
hate!
THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much]
further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL
REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR
SERVICE OR EXPERIENCE. Design, as I see it, is
arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t.
Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the
front burner.
Design+ = Beautiful Systems.
Fred S.’s “mediocre” thesis. Herb K.’s
napkin.
Great design = One-page
business plan (Jim Horan)
K.I.S.S.: Gordon Bell (VAX
daddy): 500/50. Chas. Wang (CA): Behind schedule?
Cut least productive 25%.
Systems: Must have. Must
hate. / Must design. Must un-
design.
Mgt. Team includes … EVP
(S.O.U.B.)
Executive Vice President, Stomping Out Unnecessary Bullshit
“Ninety percent of what we call ‘management’ consists of making it difficult for people to
get things done.” – P.D.
First Steps: “Beauty Contest”!1. Select one form/document: invoice, air bill,
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.
It all adds up to … THE BRAND.
The Heart of Branding …
“WHO ARE WE?”
“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
“WHAT’S OUR
STORY?”
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
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
“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It:
See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions:“How likely are you to
purchase this new product or service?” (95% to 100% weighting by execs)
“How unique is this new product or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain
“You do not merely want to be the best of the best. You
want to be considered the only ones who do
what you do.”Jerry Garcia
“A great company is defined by the
fact that it is not compared
to its peers.”Phil Purcell, Morgan Stanley
Brand = You Must Care!
“Success means never letting the competition
define you. Instead you have to define yourself based on a point of view you care deeply
about.” Tom Chappell, Tom’s of Maine
“WHY DOES IT MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
NEW BUSINESS: NEW WORK
The WOW Project.
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
“Let’s make a dent in the universe.”
Steve Jobs
Language
matters!
“We shape our buildings. Thereafter
they shape us.”—WSC
“We shape our words. Thereafter
they shape us.”—TJP
“Astonish me!” / S.D.
“Build something great!” / H.Y.
“Immortal!” / D.O.
WOW Projects for the
“Powerless.”
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA: Model F4
Find a Fellow
Freak Faraway
F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
And …
K2KK*S2SS***Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
BOTTOM LINE
The Enemy!
Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002
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!
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
“Nobody gives you power. You just take it.”—Roseanne
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”*Fortune, article on “Most Admired Global Corporations”
Epitaphs Epitaphs from from HellHell
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HE WOULDA DONE SOME HE WOULDA DONE SOME REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT … HIS BOSS WOULDN’T HIS BOSS WOULDN’T
LET HIM! LET HIM!
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HE MADE BUDGET! HE MADE BUDGET!
(AGAIN & AGAIN.)(AGAIN & AGAIN.)
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HIS NET WORTH WAS $11,000,000.HIS NET WORTH WAS $11,000,000.
Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002
HE HIT QUARTERLY HE HIT QUARTERLY
EARNINGS TARGETS 44 EARNINGS TARGETS 44 TIMES IN A ROW.TIMES IN A ROW.
The
Sales25.
The Sales25: Great Salespeople …1. Know the product. (Find cool mentors, and use them.)2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
It’s politics, stupid! (Play or sit on the sidelines.)
Great Salespeople …8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)
Great Salespeople …12. Think “Turnkey.” (It’s always your problem!)13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!
Boss Work: Starting a WOW
Projects Epidemic.
Premise: “Ordering” Systemic Change is a Stupid Waste
of Time!
Demos! Heroes! Stories!
Demo = Story
“A key – perhaps the key – to leadership is the
effective communication of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
MBSA!*
*Managing By Story-ing Around/David Armstrong
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, Confessions of an Uncivil Servant
NEW BUSINESS: NEW YOU
Re-inventing the Individual: BRAND
YOU. (Or Else.)
“If there is nothing very special about
your work, no matter how hard you apply yourself, you won’t get noticed, and that
increasingly means you won’t get paid much either.”
Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2002Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial Instinct
CEO/Leader/Businessperson/CloserMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
Sam’s Secret #1!
Minimum New Work SurvivalSkillsKit2001Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial Instinct
CEO/Leader/Businessperson/CloserMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
“My ancestors were printers in Amsterdam from 1510 or so until
1750, and during that entire time they didn’t have to learn anything
new.”Peter Drucker, Business 2.0 (08.22.00)
“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
26.3
3 Weeks in May
“Training” & Prep: 187“Work”: 41
(“Other”: 17)
1% vs.
367%
Divas do it. Violinists do it. Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it. Surgeons do it. Cops do it.
Astronauts do it. Why don’t businesspeople do it?
Invent. Reinvent. Repeat.
Source: HP banner ad
“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
Thriving in 24/7 (Sally Helgesen)
START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of
where we are.
LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.
CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your
own business.
WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking
people up.”
Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the
Yellow Pages
Boss Work: The Talent Imperative.
Brand = Talent.*
*Duh.
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Model 25/8/53
Sports Franchise GM
“The leaders of Great Groups love talent and know where to find it. They revel in
the talent of others.”Warren Bennis & Patricia Ward Biederman,
Organizing Genius
2. Greatness
Only The Best!
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent
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
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
4. Pay
Fork Over!
“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!
“Why focus on these late teens and twenty-somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history,
children are more comfortable, knowledgeable and literate than their parents about an
innovation central to society. … The Internet has triggered the first industrial revolution in history
to be led by the young.”The Economist [12/2000]
8 Minutes*
—Dr. Sugata Mira, NIIT/ New Delhi/ 1999
*Ignorance to Surfing
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
7. Women
Born to Lead!
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!Shout goodbye to “knowing
one’s place”!
Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
“Investors are looking more and more for a relationship with their financial advisers. They want someone
they can trust, someone who listens. In my experience, in general,
women may be better at these relationship-building skills than are
men.”Hardwick Simmons, CEO, Prudential Securities
Okay, you think I’ve gone tooooo far.
How about this: DO ANY OF YOU SUFFER
FROM TOO MUCH TALENT?
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
8. Weird
The Cracked Ones Let in the Light!
The Cracked Ones Let in the Light“Our business needs a massive
transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
“Are there enough weird people in
the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)
“The A students work for the B students. The
C students run the business. The D
students dedicate the buildings.” —Assertion to Kinko’s founder
Paul Orfalea from his Mom (Fortune/05.13.02)
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
10. Leading Genius
We are all unique!
Beware Lurking HR Types … One size
NEVER fits all. One size fits one. Period.
48 Players = 48 Projects =
48 different success measures.
MantraM3
Talent = Brand
The Education Fiasco.
Losing the War to Bismarck (and Rockefeller)
J. D. Rockefeller’s General Education Board
(1906): “In our dreams people yield themselves with perfect docility to our
molding hands. … The task is simple. We will organize children and teach
them in a perfect way the things their fathers and mothers are doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor
grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a
state requirement for demonstrating ‘grade-level motor
skills.’ ”Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND
GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out
of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids
raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:
Every school I visited was participating in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
Tom’s Edu3M
Manifesto**Manifesto for Education in the 3rd Millennium
Education3MLearning is a normal state.Children are learnavores.
Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]
We learn at different rates.We learn in different ways.
Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real
world” standards.
Education3MWe learn most/fastest/most completely when we are passionate about what we are learning and it
matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/
Learning by Internship.Classrooms are abnormal places.
We need changes of pace. [Japanese recesses after each class.]
International test scores are not correlated with hours-per-year in class.
Big classes are slightly problematic. Big schools suck. Period.
Education3MWe learn most/fastest/most completely when we are passionate about what we are learning and it
matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/
Learning by Internship.Classrooms are abnormal places.
We need changes of pace. [Japanese recesses after each class.]
International test scores are not correlated with hours-per-year in class.
Big classes are slightly problematic. Big schools suck. Period.
Education3M“All this”—the right stuff—fits the NWW/New World
of Work hand-in-glove. [NWW = Age of Creativity.]U.S. schools circa 2001 are a vestige of the
Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]Teachers need enough space-time-flexibility to get
to know kids as individuals.Scientific discovery processes and the teaching of
science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3MOur toughest “learning achievement”—
mastering our native language—does not require schools, or even competent parents. [It
does require a desperate need-to-know.]Great teachers are great learners, not imparters-
of-knowledge.Great teachers ask great questions—that launch
kids on lifelong quests.The world is not about “right” & “wrong”
answers; it is about the pursuit of increasingly sophisticated questions—just ask a ski
instructor or neurosurgeon.
Education3MMost schools spend most of their time setting
up contexts in which kids learn not to like particular subjects. [Evidence shows that such anti-
learning sticks!]Vigorous exploration is normal … until you are
incarcerated in a school.“Bite size” education-learning is neither
education nor learning.Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3MThe “school reform” “movement” is a giant step …
backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the
wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”
Schools of “education” should by and large have their charters revoked.
Education3MStability is dead; “education” must
therefore “educate” for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more
important than mastery of a static body of “facts.”
“Education” must “develop in youth the capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]
“The boys who made the best ‘Grotties’ usually
turned out to be nonentities later; boys who hated
Groton did much better.”FDR biographer John Gunther (quoted in Whoever Makes the
Most Mistakes Wins, Richard Farson & Ralph Keyes)
Ye gads: “Thomas Stanley has not only found no correlation between success in school and an
ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-
related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.
Yet the success-failure standards of most schools penalized risk takers. Most educational
systems reward those who play it safe. As a result, those who do well in school find it hard to
take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
NEW BUSINESS:
NEW MARKETS
Trends I:
Women Roar.
Women & the Marketspace.
?????????Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51% Cars … 60% (90%)
All consumer purchases … 83% Bank Account … 89%
Health Care … 80%
????
80%
Riding Lawnmowers
2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
$4.8T > Japan
9M/27.5M/$3.6T > Germany
New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!*[* No shit!]
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.”
“Men seem like loose cannons. Men always move faster through a store’s
aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants,
pick something up, and then, almost abruptly he’s ready to buy. For a
man, ignoring the price tag is almost a sign of virility.”
Paco Underhill, Why We Buy* (*Buy this book!)
How Many Gigs You Got, Man?
“Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their
vendor.” Robin Sternbergh/ IBM
Read This: Barbara & Allan Pease’s
Why Men Don’t Listen & Women Can’t Read Maps
“It is obvious to a woman when another woman is upset, while a man generally has to physically witness
tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned
sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Resting” State: 30%, 90%: “A woman knows her children’s
friends, hopes, dreams, romances, secret fears, what they are
thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes
to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,
but can never find things in fridges, cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage contributes significantly to what is
called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.
They are excellent at imitating animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Barbara & Allan Peace, Why Men Don’t Listen & Women Can’t Read Maps: Women love to
talk, men talk silently to themselves. Women think aloud, women talk, men feel
nagged. Women multitask. Women are indirect, men are direct. Women talk
emotively, men are literal. Men listen like statues. Boys like things, girls like
people. Boys compete, girls cooperate. Men hate to be wrong. Men hide
their emotions.
“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or
fixes a leaking tap.”Barbara & Allan Peace, Why Men Don’t Listen &
Women Can’t Read Maps
“Women speak and hear a language of connection and intimacy, and men
speak and hear a language of status and independence. Men communicate to obtain information, establish their
status, and show independence. Women communicate to create
relationships, encourage interaction, and exchange feelings.”
Judy Rosener, America’s Competitive Secret
Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that cohere.*
TP/Furniture: “Tech Specs” vs. “Soul.” **
*Redwood (UK)**High Point furniture mart (04.2002)
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
What If …
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
Lowe’s … Gets It. 1989:
13%/“lumber shop” … 2002: >50%
“Women don’t buy
brands. They join them.”
EVEolution
Not!“Year of the
Woman”
Enterprise Reinvention!Recruiting
Hiring/Rewarding/PromotingStructure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!Tom Peters
“If we are single, they say we couldn’t catch a man. If we are
married, they say we are neglecting him. If we are divorced,
they say we couldn’t keep him. If we are widowed, they say we
killed him.”Kathleen Brown, on the joys of female political candidacy
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 “porn” collection?
Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ?? (94% = 272)
0
Stupid!
Stupid: “Amazing, now that I think about it. A bunch of
guys --developers, architects, contractors,
engineers, bankers--sitting around designing shopping centers. And the ‘end users’
will be overwhelmingly women!”
“Customer is King”: 4,440
“Customer is Queen”: 29Source: Steve Farber/Google search/04.2002
F.Y.I.
“Women Beat Men at Art of Investing”
Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of
stocks more often; women choose carefully and hold on for the long term)
Investment Club Returns
Women-only clubs 1997 … 17.9%Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
Value Line: Top State* Investment Clubs 2000
8 … All male19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots!“Why all this focus on women and our lack of
investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men.
The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide their mistakes from their wives.”
Source: Newsweek 01.08.01
Trends II: Boomer
Bonanza/Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44, stupid!”
Subject: Marketers & Stupidity
Or is it: “18-44 is stupid,
stupid!”
2000-2010 Stats
18-44: -1%55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
Member Growth: 1987 – 1997
18 – 34: 26%35 – 49: 63%
50+: 118%Source: IHRSA
50+
$7T wealth (70%)/$2T annual income50% all discretionary spending
79% own homes/40M credit card users41% new cars/48% luxury cars
$610B healthcare spending/74% prescription drugs
5% of advertising targetsKen Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“Advertisers pay more to reach the kid because they think that once someone hits
middle age he’s too set in his ways to be susceptible to advertising. … In fact this notion of impressionable kids and hidebound geezers is little more
than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of
youth.”—James Surowiecki (The New Yorker/04.01.2002)
Read This!
Carol Morgan & Doran Levy,
Marketing to the Mindset of Boomers
and Their Elders
“Marketers attempts at reaching those over 50 have
been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“Households headed by someone 40 or older enjoy 91% ($9.7T) of
our population’s net worth. … The mature market is the dominant
market in the U.S. economy, making the majority of
expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders
“The mature market cannot be dismissed as entrenched in its
brand loyalties.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their
Elders
“Focused on assessing the marketplace based on lifetime
value (LTV), marketers may dismiss the mature market as
headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“While the average American age 12 or older watched at least five
movies per year in a theater, those 40 and older were the most
frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-
olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But
who in the fashion industry is currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Stupid!
“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Yes: “Target Innovation” & “Target Delivery Systems”
NEW BUSINESS: NEW LEADERSHIP
The Passion Imperative: The
Leadership33
The Basic Premise.
1. Leadership Is a … Mutual
Discovery Process.
“I don’t know.”
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express
their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
The Leadership
Types.
2. Great Leaders on Snorting Steeds Are Important – but
Great Talent Developers (Type I
Leadership) are the Bedrock of Organizations that Perform Over
the Long Haul.
25/8/53*(*Damn it!)
3. But Then Again, There Are Times When This “Cult of Personality”
(Type II Leadership) Stuff Actually Works!
“A leader is a dealer in hope.”
Napoleon (+TP’s writing room pics)
4. Find the “Businesspeople”!
(Type III Leadership)
I.P.M. (Inspired Profit Mechanic)
5. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky
Anderson—1 season.
The Leadership
Dance.
6. Leaders … LOVE the
MESS!
“I’m not comfortable unless
I’m uncomfortable.”—Jay Chiat
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
7. Leaders
DO!
The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
8. Leaders
Re-do.
“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get
something good enough. Then they leverage the power they’ve gained in
other markets to enforce their standard.”Seth Godin, Zooming
9. BUT … Leaders
Know When to Wait.
Tex Schramm: The “too hard”
box!
10. Leaders Are …
Optimists.
Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
11. Leaders … DELIVER!
“It is no use saying ‘We are doing our best.’ You have got to succeed in doing
what is necessary.” —WSC
12. Leaders FOCUS!
“To Don’t ” List
13. Leaders … Set CLEAR
DESIGN SPECS.
Danger: S.I.O. (Strategic Initiative Overload)
JackWorld/1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout)
TALENT JACK!
14. Leaders …
Send V-E-R-Y Clear Signals About
Design Specs!
Ridin’ with Roger: “What have you done to
DRAMATICALLY IMPROVE quality in the
last 90 days?”
If It Ain’t Broke … Break It.
15. Leaders …FORGET!/
Leaders … DESTROY!
Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
16. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the
Bathwater.”
“Damned If You Do, Damned If You Don’t, Just Plain
Damned.”Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)
17. Leaders …
HONOR THE USURPERS.
Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
Leaders know … WE BECOME WHO
WE HANG WITH!
18. Leaders Make [Lotsa] Mistakes
– and MAKE NO BONES ABOUT IT!
“Fail faster. Succeed sooner.”
David Kelley/IDEO
19. Leaders Make …
BIG MISTAKES!
“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
Create.
20. Leaders Know that THERE’S MORE TO LIFE
THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW
MARKETS.
No one ever made it into the Business Hall of Fame on a record of
“line extensions.”
“I never, ever thought of myself as a businessman. I was
interested in creating things I would be
proud of.” —Richard Branson
Talent.
21. When It Comes to
TALENT … Leaders Always Swing
for the Fences!
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
Passion.
22. Leaders … Out Their
PASSION!
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
23. Leaders Know: ENTHUSIASM
BEGETS ENTHUSIASM!
The “Job” of Leading.
24. Leaders Know It’s
ALL SALES ALL THE TIME.
TP: If you don’t LOVE SALES … find
another life. (Don’t pretend you’re a “leader.”) (See TP’s
The Project50.)
25. Leaders LOVE
“POLITICS.”
TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend you’re a “leader.”)
26. But … Leaders Also
Break a Lot of China
If you’re not pissing people off, you’re not making
a difference!
27. Leaders Give …
RESPECT!
“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
28. Leaders Say
“Thank You.”
“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
29. Leadership Is a …
Performance.
“It is necessary for the President to be the nation’s No. 1
actor.”FDR
Introspection.
30. Leaders … Enjoy Leading.
“Warren, I know you want to ‘be’
president. But do you want to ‘do’
president?”
“[Bertelsman’s Reinhard] Mohn wasn’t a creative type. What got him juiced was the
art of running an organization and motivating the people who work there.”
—Fortune/05.27.2002
31. Leaders … Take Breaks.
Zombie!Zombie!Zombie!Zombie!
The End Game.
32. Leaders ???
:
“Hire smart – go bonkers – have grace – make mistakes – love technology – start all
over again.”
“LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES”
33. Leaders Know WHEN TO LEAVE!
Have you changed
civilization today?Source: HP banner ad
Thank You!
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