Tom Peters SeminarM3

Rollercoaster Days: Learning to … Rock & Roll!

Raymond JamesLas Vegas/03.29.2001

Everything has changed: E.g.: Profits & cash flow matter in valuing a stock! The I’net & B’tech revolutions haven’t nullified the business cycle. “Everyman” is not panicking. Nothing has changed: E.g.: 25 years of whitewater ahead!! There is a New Economy. The Internet will change EVERYTHING. There are many revolutions to come … hence many unforeseen winners & many unforeseen losers. Where’s the bottom: NOBODY HAS A CLUE. Duke has a good basketball team. Don’t short Krispy Kreme!

“There will be more confusion in the the

business world in the next decade than in any decade in history. And the

current pace of change will only accelerate.”

Steve Case

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 1st 20 years > 1800s

2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th

century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture

in the fabric of human history”)

Ray Kurzweil, talk april2001

BIG MESSAGE

#1:

Confusion reigns. Acknowledge it. THRIVE ON IT.

Structure

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 the old ones out.”

Dee Hock

The [New] Ge Way

DYB.com

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Brand Inside

Brand You: Distinct …

or Extinct

White Collar Revolution!

2010 “Demographics”:

By 2010, full-time workers will be in the

minoritySource: MIT study (28August2000)

“If there is nothing very special about your work, no matter how hard you apply

yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2000

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Finishing SkillsEntrepreneurial Instinct

CEO/Leader/BusinesspersonMistress of Improv

Sense of HumorIntense Appetite for Technology

Groveling Before the YoungEmbracing “Marketing”

Passion for Renewal

BIG MESSAGE

#2:

Different or

Dead!

Brand Inside

Brand Talent: The Great War for Talent

“We have transitioned from an asset-based strategy

to a talent-based strategy.”

Jeff Skilling, COO, Enron

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 (05.17.00)

MantraM3

Talent = Brand

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report, Business Week, 11.20.00

Women 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

“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

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

Okay, you think I’ve gone tooooo far.

How about this: DO ANY OF YOU SUFFER

FROM TOO MUCH TALENT?

BIG MESSAGE

#3:

Best talent wins! [Women =

Best Talent?]

Brand InsideReprise

N.W.O.: Was Is Is

• Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are

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

• Seat 9B, UA233• Address: Anne@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

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work II

The Commodity Trap

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)

“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

BIG MESSAGE

#4:

One more Time: Different or

Dead!

Brand Outside

Strategy 1:Use E-Commerce to

Re-invent Everything!

Tomorrow Today: Cisco!

90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships direct

Gross margin:65%; Net margin: 28%

Annual savings in service and support from customer

self-management: $550M

Tomorrow Today: Cisco!

90% of $20B; save $550M

C.Sat e >> C.Sat H

Customer Engineer Chat Rooms/Collaborative

Design ($1B “free” consulting) (45,000 customer problems a week solved via

customer collaboration)

Welcome to

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

a business go down and

perceived service goes up because customers are conducting it

themselves.” Ray Lane, Oracle

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“Ebusiness is about rebuilding the organization from the

ground up. Most companies today are not built to exploit the Internet.

Their business processes, their approvals, their hierarchies, the

number of people they employ … all of that is wrong for running an

ebusiness.”

Ray Lane, Kleiner Perkins

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

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

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

believed as many as six impossible things before breakfast.”

Lewis Carroll

I’net …

… allows you to dream dreams you could never have imagined before!

BIG MESSAGE

#5:

Embrace the Web! [Or die.]

Brand Outside

Strategy 1A: Embracing an e-Led Age

of Self-Determination

“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

The control revolution. The potentially monumental shift in

control from institutions to individuals made possible by new technology such as the Internet.

Source: Introduction, The Control Revolution, Andrew Shapiro

“I’m old enough to remember when you went into a bar in the summer,

they were watching a baseball game. Now,

they’re watching CNBC.”Byron Wien, Chief U.S. equity strategist,

Morgan Stanley Dean Witter

“It may be the most far-reaching evolution of them all: the

metamorphosis of passive patient into consumer – and well-informed, assertive consumer at that. The

defining axiom of traditional medicine – ‘doctor’s orders’ - is being turned on its head. These days it’s the patients

who are armed, the doctors who must get wired to keep nimble.”

Richard Firstman, “Heal Thyself,” On Magazine (04.01)

THE FUTURE: Patients Rule!

Control Over Aging! [M&F Cosmetic Surgery, Viagra] Targeted Therapies = High Expectations The Internet! [meds, expert consultation, info-

knowledge incl. outcome data & own recs, interaction with peers & docs, awareness that experts aren’t]

Alt Therapies! [more visits, some insurer recognition]Awareness [medicine as front-page news, ads]

Boomers! [#s, $$$, Ethos of self-control]Prevention/Wellness

HMO [no-choice] Revolt“Age of Talent” [Be nice, boss!]

Speed! [surgicenters, out-patient, self-admin regimens]

Sooooo …

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

determination? Hint: This means letting go

of traditional sources of power!

Brand Outside

Strategy 2:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Consumer Electronics … 51%

Cars … 60% (90%)All consumer purchases … 83%

Bank Account … 89%Health Care … 80%

????

80+%

Riding Lawnmowers

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

“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.”

Faith Popcorn

Mars & Venus!

One side of a cell phone conversation, Woods

Hole to Vineyard Haven ferry, March 23, 2001

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

“Women don’t buy

brands. They join them.”

Faith Popcorn, EVEolution

“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 Altan … THIS IS EVEN BIGGER THAN THE

INTERNET!

Tom Peters

“Women Beat Men at Art of Investing”

Source: Miami Herald, reporting on a study by Profs. Terrance O’dean 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)

BIG MESSAGE

#6:

(1)SHE is

your client! (2) She is

NOT he!

Brand Outside

Strategy 3:

Welcome to “Old World”!

“‘Age Power’ will rule the 21st century

“We are woefully unprepared.”

Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

Subject: Marketers & Stupidity

It’s 18-44, stupid!*

*18-24: XFL

Subject: Marketers & Stupidity

Or is it: “18-44 is stupid,

stupid!”

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

[ Member Growth: 1987 – 1997

18 – 34: 26%35 – 49: 63%

50+: 118%Source: IHRSA]

TP to IHRSA: Look this way! I am your ideal body

type!

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

50+

$7T wealth (70%)/$2T annual income50% all discretionary spending

79% own homes40M credit card users

41% new cars/48% luxury/5M auto loans$610B healthcare spending

74% prescription drugs

5% of advertising targets

Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!

BIG MESSAGE

#7:

SHE is

getting older.

[Trends #1, #2 – or #2 & #1,#3:

Women, Aging,

Greening]

Protect the environment: 52%Develop more energy: 36%

Equal: 6%No opinion or Other: 6%:

Source: Gallup 3-5 March 2001

Brand Outside

Strategy 4:

BRAND POWER!

“WHO ARE YOU [these days] ?”

TP to Client

“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

“Most companies tend to equate branding with the company’s marketing. Design a new marketing

campaign and, voila, 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

“Brand Promise” Exercise: (1) Who Are WE? (1 page, then 25 words.) (2) List

three ways in which we are UNIQUE … to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.)

(4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:

Try ’em on a skeptical Client!

“Create a Cause, not a ‘business.’

”Gary Hamel, Fortune (06.00)

“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

“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

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

Message: REAL Branding is personal. REAL Branding is integrity. REAL

Branding is consistency & freshness. REAL Branding is the answer to WHO

ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments,

all hands affair.

“WHO ARE WE?”

“WHO AM I ?”

“EXACTLY HOW AM I/

ARE WE DIFFERENT?”

“HOW DO I CONVEY THAT

DIFFERENCE TO THE CLIENT ”

“You must be the change you

wish to see in the world.”

Gandhi

Brand Leadership: ENTHUSIASM RULES!

Ben Zander: “I am a dispenser of

enthusiasm.”

TP’s ultimate accolade:

“Charles is an

enthusiast!”

“A leader is a dealer in hope.”

Napoleon

“ WHY DOES IT MATTER TO

THE CLIENT?”

“Let’s make a dent in the universe.”

Steve Jobs

BIG MESSAGE

#8:

Who ARE you? What’s

your CAUSE?