Post on 28-Dec-2015
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