Post on 16-Dec-2015
Tom Peters’ Lessons in Leadership
Grand Rapids
02-23-00
Hen scratches @ 37,000 feet …
Microsoft = R.O.W.
Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99
Microsoft = R.O.W. (II)
Microsoft > GM + Ford Boeing + Lockheed
Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg
+ McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker OatsSource: Yastrow Marketing (through 11-23-99)
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)
“It means nothing less than the total
reinvention of this company.”
Jacques’ New New Ford
Ford + MicrosoftFord + Yahoo!Ford + Oracle
Ford + HPEtc.Etc.
64/24
Goal?
“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
“I genuinely believe we are living through the greatest intellectual moment in history.”
Matt Ridley, Genome
“Medicine looks likely to change more in the next 20 years than it has in the last
200.”
British Medical Journal (11-11-99)
???????????????????
Warner Lambert
&
Pfizer
“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)
“We are in a brawl with no rules!” Paul Allaire
S.A.V.
T.T.D.sThe next slide is the first of many
“T.T.D.” activities. I.e.: Things To Do. These are by and large shorthand forms of training exercises I use.
Also: Each of these T.T.D. slides has accompanying Notes.(See following slide.)
Tom Peters
T.T.D./True or False:
“incrementalism”
VERSUS
“innovation”?
Notes Page• This is a daunting issue. There is no “right
answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention. Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!
Seminar Y2K
Brand Everything:Distinct or Extinct!
Part I: Forces @ WorkPart II: Brand Inside
Part III: Brand OutsidePart IV: Brand Leadership
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]
Brand Defined
DistinctionExcellence
Emotional “Signature”Trustworthiness
ConsistencyShorthand
Forces @ Work
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
Q: What do you do when you are a big,
dopey company and out of ideas?
A: You merge with another big,
dopey company that doesn’t
have any ideas either.
R: An incredibly big, incredibly dopey company
… going nowhere.
“When asked to name just one big merger that had lived up to
expectations, Leon Cooperman, former cochairman of Goldman
Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I
draw a blank.’ ”
Mark Sirower, The Synergy Trap
“I feel betrayed. I bought stock in a company that was going to change the world. I didn’t buy a big, fat, stupid conglomerate. And now
I’ve got one.”Alan Towers, consultant, quoted in Business Week
[BW: “The irony is that AOL Time Warner is a vertically integrated conglomerate. Not exactly the sort of nimble
competitor that will thrive in cyberspace.”]
“Talent” and a $2T enterprise??????
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
“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
“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
And …
Jorma OllilaJim Crow
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
G.M. = The Recruitment and Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets on Projects. [Period!]
Silicon Valley Success Secrets
“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6
do okay; 3 do well; 1 hits the jackpot
Source: The Economist
“R & D”
Intel’s venture fund: 275 investments, $3.5B
Source: Fast Company (12-99)
EcoNets/Internet Zaibatsus
“The model is about partial acquisitions and ownerships that then form a whole. Each part has to have value separately, be able to raise capital separately, and
motivate employees separately. Corporations of the past never had that.”
Flip Flipowski, Divine InterVentures (Red Herring)
“The brick and mortars will die, no matter what. … So you have to take
your best employees and best businesses and spin them off and just own 40 percent of everything
that’s left. Do that and you survive.”
Flip Flipowski, Devine InterVentures (Red Herring)
T.T.D.
What are the specifics of your [personal, unit]
“Forgetting Strategy”?
Notes Page
• Discuss the idea of “learning” versus “forgetting.” I THINK THIS IS A LOT MORE THAN A “SEMANTICS DEBATE.” Assuming you agree with me, what – very specific – steps are you taking to move beyond the Assumptions du Jour? Hint: This holds for a 1999 dot.com startup as much as for an elderly company.
T.T.D.
Discuss the G.M./V.C. “strategy” as it applies to
your unit.
Notes Page
• What do “G.M.s” do? [Invite one to talk to your group.] Do you do what they do? If not, why not? How about a “G.M. Strategy”?
• Repeat the above for the Life of a Venture Capitalist.
T.T.D.
Evaluate your portfolio of projects [and people]: Are
you placing enough interesting [long shot?]
bets?
Notes Page
• Be brutally honest! Hint: This holds for you and me as individuals as well as for our unit.
C.E.O. to
C.D.O.
“It used to be that the big
ate the small. Now the fast eat the slow.”
Geoff Yang, IVP/Redpoint Ventures
[E.g.: Craig Venter/Celera Genomics]
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
“ALL OF THESE ‘CONVERSATIONS’ TODAY ABOUT ‘THE WEB’ WILL APPEAR SO BLOODY DAMN SILLY AND PEDESTRIAN TEN … FIVE? … THREE? … YEARS FROM NOW.”
— Tom Peters (11-99)
P.S.: Read Ray Kurzweil’s The Age of Spiritual Machines: When Computers Exceed Human Intelligence
BW: “human brain has only a short time left as the smartest thing on earth”/ “subjugate
humanity by 2050”
Health Forum Journal: “In one generation or less, every element of health care, every assumption, will be changed or gone.”
Dr. George Poste, SKB: 500 molecular targets in ’95 to 70,000 in ’99/ 35 compounds
per year to 2M
Wired [Feb 2000]
“Cyborg 1.0: Kevin Warwick Outlines His Plan
to Become One with His Computer”
“Capitalism and democracy are the two dominant forces of modern history; they unleash human
creativity and energy like nothing else. But they are also forces of destruction. They destroy old orders, hierarchy, tradition, communities, careers, stability
and peace of mind itself. The challenge of the West in the next century will be to find ways to channel the
sweeping power of these two - the last surviving big ideas - as they reorganize all human activity.
Otherwise, for much of the world, it may be too fast a ride.”
Newsweek 12-99
T.T.D.
How do you rate as a …
C.D.O.?
Notes Page
• So … what … exactly … are you doing to DESTROY what you [and yours] are today? List every Project that aims to ATTACK today’s “culture” and assumptions. Be specific!
Message from Seattle?
Top 3 Americans > 48 poorest nations
Source: Newsweek 12-99
[Visit India … every 24 months.]
Brand Inside
PSF 1:Brand Org!
108 X 5vs.
8 X 1*
* 540 vs. 8
ERP, ECM, Web, Etc.
IT’S THE GIANT SUCKING SOUND
OF SLACK BEING EXTRACTED FROM
THE GLOBAL ECONOMY!
White Collar Revolution(Finally!!)
90% … in 10 years!PSFs ….. All!
Brand Yous … All!WOW Projects … All!
“The coefficient of friction associated with the grunge
of business is amazing!”
Michael Schrage
Cemex and FDX!
CCC InformationServices!
Swissair
e>bookinge>ticket
e>check-ine>tracke>info
Oracle and Ford!
T.T.D.
Discuss: Is my “90% in 10+ years” extreme?
Notes Page
• I admit that some say I’m over-the-top here. I honestly don’t think I am. Try and imagine your HR/Whatever Dept. fully automated with numerous tasks outsourced … to India or Ireland.
“Assetless Company”
J.B.
“Don’t own nothin’ if you can help it. If you can, rent your shoes.”
F.G.
And …
50M @ $20,000 = $1T*
*Michael Dertuzos, MIT, on India’s “back office” outsourcing potential
[02-08-00/Delhi]
RR on Sara Lee
“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available
with insights into the customer’s individual needs
and preferences.”
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon
* ’twixt doctors, patients and providers; $250B in waste (?); source: Michael Lewis,
The New New Thing
SoftWatch (MS)
“Manage relationships across the healthcare continuum”/ Amir Kishon
Establish e-relationships with customers/retain customers/collect data
Patients record info + receive feedback/ Online access to nurses
Community with others with MS
Etc.
Source: Start-Up
Hewitt & HMO e-bids!
“We want to be the air traffic controllers
of electrons.”Bob Nardelli,
GE Power Systems
[And: Enron!]
“UPS used to be a trucking company with technology.
Now it’s a technology company with trucks.”
Forbes (1-00), on UPS’s $11B spent on IS in the 90s; UPS was Forbes’ “Company of the
Year”
T.T.D.
Does your vision involve a critical position in the
industry’s Spider’s Web?
Notes Page
• Try to depict your industry … or your department … with all its interconnections. E.g.: What if every task you perform became a “for profit” task in which you became an “industry expert”? E.g.: As an HR Dept. in the utility industry, what if you started the premier dot.com industry Talent Bank?
TRUST*
*Now … more than ever!
[ Words to Live By …
“Hierarchy is an organization with its face
toward the CEO and its ass toward the customer.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business]
PSF 1.0
Professional Service Firm Conversion Kit /
Release 1.0
Why are there no books on how to create
a “Cool, Rocking, WOW-producing
Finance Department”?
Credo
“WORK WORTH
PAYING FOR”
T.T.D.
!!!!!!!!!!!!!!!!!!!!
Notes Page
• What is the “bottom line” – WORTH PAYING FOR – for every project your unit [or you] has going?
PSF 1.0
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
“support function” / “cost center” / “bureaucratic
drag”
or …
“Rock Stars of the ‘Age of Talent’ ”
“Real” PSF …–Think Inc. (Mindset = Step No.1!)–Clients rule! / Engage Clients in deep
dialog/ “Join us in an Adventure” / Fire duds!
–Work = WOW Projects (100%!)–Embrace the Politics of
Implementation!–Practice serial monogamy! –Master “the economics”! (WWPF!)
“Real” PSF …–WE HELP PEOPLE!–Co-habit with the Client!–Create a Culture of Urgency!–Love thy Support Staff!–You need a Methodology! / Obsess on R&D!–BECOME A “CONNOISSEUR
OF TALENT”!
Real PSF …
WE OWN THIS PLACE!THIS IS COOL STUFF!WE ARE THE WORLD!
The “7Ps” of PSF 1.0
Projects!Passion!
Provocation!Partnership!
Politics!Professionalism!
Performance!
T.T.D.
Use the prior slide as a checklist relative to every activity [project] your unit
is working on.
C.I.O. to
C.E.F.R.N.S.*
*Chief Evangelist For
Really Neat Stuff
T.T.D.
Compare: “Department Head” versus
“Managing Partner, Finance Inc.”
Notes Page
• See our book, the Professional Service Firm50, re the differences between a traditional “Dept.” and a full-fledged “PSF.” Our “The Work Matters” manifesto – at tompeters.com – also covers this.
Seminar Y2K
Message: Distinct … or
Extinct!
Brand Inside
PSF 2:Brand Work!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget … who cares?”
anon. seminar participant (4/99)
“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)
WOW Project Anatomy
I. Create!II. Sell!
III. Implement! IV. Exit!
I. Create!
Reframe! THERE ARE NO “SMALL” PROJECTS!
Observe & Record!!Head for the trenches!
You gotta love it!
Measure: WOW!, Beauty, Raving Fans, Impact!
Build a no-baloney Business PlanCreate community. Now!
Obsess on … the End User. Now!
Reframers’ Rules:
Rule 1: Never accept an assignment as given!
Rule 2: You’re never so powerful as when you are “powerless”!Rule 3: Every “small” project contains the entire enterprise
DNA!
T.T.D.
Examine that “small”/ “annoying” project you’re
working on. Can it be re-cast as a WOW/ Culture Change
Project? What are the hidden assumptions about customers/
suppliers/ employees?
Notes Page
• I am adamant: Every project can be made into a “big deal” if your head is in the right place. So … now … COMPLETELY RE-INVENT THAT “SMALL” PROJECT YOU ARE WORKING ON! No bull! E.g.: What about a “Memorial Day Employee Picnic that signals a whole new attitude toward our staff”?
Measures
–WOW!–Beauty!–Raving Fans!–Impact!
T.T.D.
MEASURE … NOW … DAMN IT!
Notes Page
• NO BALONEY: THIS IS MY #1 GOAL FOR THE WHOLE DAMN SEMINAR … THAT YOU [AND YOURS] WILL MEASURE EVERY PROJECT AGAINST MY FOUR KEY CRITERIA: WOW!, BEAUTY, RAVING FANS, IMPACT. [P-L-E-A-S-E.]
E.g.: WOW Scale
1. … Dull as dishwater.
5. … Gets the job done.
7. … “Good work!”.
10. … A serious “Braggable”!
Kaiser: 4.15.26
Liberty Ship
2 years
240 days
9 days
4 hours, 15 minutes, 26 seconds
[Just Say “No” to …
S-t-r-e-t-c-h]
WOW Project “Acid Test”
Can you explain it - with zest -
to your 14-year-old?
“Every project we take on starts with a question:
How can we do what’s never been done
before?”Stuart Hornery, CEO, Lend Lease
II. Sell!
Master “The Pitch”!Build Buzz. Consciously.
Network maniacally!Preach to the choir!
Forget your enemies. [Surround and marginalize!]Money kills!
SELL, SELL, SELL!
III. Implement!
- Live, eat, sleep … Quick Prototype!-Play!
- Keep on recruiting! (Sell!)- Obsess on the End User Community!
(Sell!)- Become a Milestone Maniac! / a Timeline Tyrant! / a List Freak! / find Ms. Last 2%!
- Appoint a Marketing Director!- Keep the WOW! front and center!
Culture of Prototyping
“Effective prototyping may be the most valuable core
competence an innovative organization can hope to
have.”
Michael Schrage
“Good prototypes have ‘charisma.’ They create narratives
… tell stories.”
Michael Schrage, Serious Play
“I view models and prototypes as the
battleground for thoughts and behaviors.”
Michael Schrage
Think about It!?
Innovation = Reaction to the Prototype
Michael Schrage
Prototyping Logic/Magic
1. Start Doin’ Stuff!
2. “Doin’ Stuff” Launches a Rich Dialogue!*
* No “stuff” = No dialogue! [No baloney!]
T.T.D./ Prototyper’s LawsDefine a small, practical test of something on a
page or less of text. Now.
Gather “found” materials … on the [very] cheap.
Find a/one partner-“customer” who’ll provide a test site.
Set a very tight deadline of about 5 days for the next concrete step.
Conduct the test! Debrief A.S.A.P.
Set the next test date. Now. [No more than 5 days hence.]
Notes Page
• The idea is to establish a “rhythm of prototyping” that defines every project.
T.T.D./ Secret No. 1: Go horizontal: Find a (one!) “line” ally in “the Boonies”
Secret No. 2: “Powerless” allies are Cool!
Secret No. 3: Passion Rules!Secret No. 4: Become a Prototyping
Maniac! Secret No. 5: Embrace Politics /
“Community Organizing”!
Notes Page
• Main Idea: YOU ARE NOT “POWERLESS.” Seek out allies in strange places … and get going! DO NOT WASTE TIME “SELLING UP.”
K2K
Reference:
Rules for Radicals, Saul Alinsky
TRUST*
*Now … more than ever!
“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
The Sweet Smell of …
“You can ‘smell’ caring [engagement, respect]
from a mile away!”
Seminar Participant, London (12/99)
IV. Exit!
“Sell out!” / Embrace “The Suits”!Recruit a passionate Ms./Mr.
Follow-up!Seed your freaks into the
mainstream!Celebrate!
Exit!
SOOOO … HOW MANY OF YOUR COLLEAGUES ARE
“BACK HOME” AT WORK ON NO-BALONEY …
WOW* PROJECTS!
* WOW = Will be remembered fondly/
bragged about 5+ years from now
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
T.T.D.: Now!– List all projects– Carefully describe a “WOW Outcome” for you
and the Client– Score (!) all projects on WOW, Beauty, Impact,
Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that
emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points
Notes Page
•DO IT! NOW!
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
1) Turn ignition key.2) Shift into drive.
3) Press foot firmly on the throat of mediocrity.
Source: Mercedes ad
[We are not trying to “WOW you up.”
We think you are/have WOW.
We are trying to give you permission to be WOW.]
Seminar Y2K
MESSAGE: THE WORK MATTERS!*
*Sorry, Scott!
Seminar Y2K
Message: Distinct … or
Extinct!
Brand Inside
PSF 3:Brand You!
“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
“If one quarter can’t make the journey, that’s the way it
has to be.”
Carly Fiorina (1-00/Forbes)
Personal “Brand Equity” Eval– I am known for [2 to 3 things]– My current Project is challenging me …– New things I’ve learned in the last 90 days
include …– My public “recognition program”
consists of …– Additions to my Rolodex include …
–My resume is discernibly different from last year’s at this time …
T.T.D./Personal “Brand Equity” Eval– I am known for [2 to 3 things]– My current Project is challenging me …– New things I’ve learned in the last 90 days
include …– My public “recognition program”
consists of …– Additions to my Rolodex include …
–My resume is discernibly different from last year’s at this time …
Notes Page
• Work your tail off on this. THIS IS A VERY SERIOUS EXERCISE. We have chosen these categories very carefully.
Ike’s World Book Page
And Yours?
They “Get it”?!– stone mason– electrician– plumber– tiler– cabinet maker– contractor– blacksmith– well driller– blaster– sheep shearer– etc.
Icon Woman …
–Totally turned on by her work!–“It” matters / a WOW Project!–“It” is … COOL!–“It” is … BEAUTIFUL!–She is … in your face!–She is an … adventurer!–She is … CEO of her own life!
Icon Woman …
- She is … at least … a little funky!–Her curiosity is … insatiable!–She thinks screwups are …
as normal as breathing!–She hangs out with some …
seriously rad Dudes!–She is not God. She is not Bionic
Woman. She is … determined to make a damned difference!
“Well-behaved women rarely make history.”
— Anita Borg, Institute for Women in Technology
Icon Woman Meets the Web …– submits resume on the Web– recruited on the Web– hired on the Web– trained on the Web– creates and conducts projects with
virtual teams on the Web– manages project and client
follow-up on the Web– manages career/reputation-building
on the Web
“The Brand Called URL”/Nathan Shedroff, Vivid Studios
“24 X 7 storefront devoted exclusively to
The Brand Called You.”
T.T.D./Soooo…
How’s your Web site?
Notes Page
• So … how is it? MY 18-YEAR-OLD SON HAS ONE! It’s fly-phat.
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
R.I.P.10 … Major job change [new area of
concentration]; major offsite educational investment; extensive
sabbatical [oddball learning experience of > 2 months];
exceptional community project [presidency of fundraising drive, run
for school board].
R.I.P.
5 ... Extensive course work in oddball area of passionate interest; major off-
the-job activity [community involvement, learn to play the cello,
study Chinese].
1 … Company training, as directed.
T.T.D./Your R.I.P.
IS IT … FORMAL? IS IT ... WOW!?
Notes Page
• We think “R.I.P.s” are imperative! So … please take these two questions seriously and literally!
T.T.D./R.I.P.
Use by yourself.Use with your mates.
Use [quantitatively?] as a measure of departmental/
P.S.F. renewal.
Use in formal eval process.
Notes Page
• The whole idea is to make “R.I.P.s” a/the centerpiece – formally – of measuring unit “freshness.” E.g.: SCORE EVERYONE’S “R.I.P.” ON ITS BOLDNESS/WOW.
“Temporary workers used to be at the low end of the workplace food chain. …”
The Wall Street Journal
Training Y2K
Anytime, anywhere!
Whatever!
Concocted by the employee [“Training Account”]
“When was the last time you asked, ‘What do I want to be?’ ” Sara Ann Friedman, Work Matters
There comes a time in everyone’s
life when they realize they work for
a dead guy.FreeAgent.com [ad]
“Everything can be taken from man but one thing: the last of human freedoms - to choose
one’s own attitude in any set of circumstances, to choose
one’s own way.”Victor Frankl, Auschwitz survivor
Seminar Y2K
Message: Distinct … or
Extinct!
T.T.D./Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the Yellow Pages
Notes Page
•THIS IS A BIG DEAL. TAKE IT SERIOUSLY. [“Yellow Pages ads” are the centerpiece of our formal Brand You training programs.]
[ T.T.D.: How About It?
Replace your current evaluation process with
Yellow Pages ads.]
Notes Page
• NO BULL! Some of our Clients have gone this far. And report stunning results. If you can’t do this formally, try it informally.
Bill Parcells’ World/ Brand You World!
BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
NY Post (9/99)
TRUST*
*Now … more than ever!
Brand Inside
PSF 4:Brand Talent!
Issue Y2K
The Great War for Talent!
“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
Alan Kay on PARC’s Bob Taylor
“He was a connoisseur of
talent.”
T.T.D./ARE YOU?
Notes Page
• There’s perhaps no more difficult “test”: AM I A NO-BALONEY CONNOISSEUR OF TALENT? Use a quantitative measure.
A Connoisseur of Talent …
– Spends time on Talent!– Becomes a student of Talent! – Puts Talent “on the agenda”!– Practices D.I.Y.– Uses Plain English! (If you want “sunny” …
ask for “sunny”!)– Creates Workspaces that foster energy,
entrepreneurship and creativity!– Recruits from oddball places! /
Recruits Oddballs!
“Recruiting college students is a job for marketing, not
HR.”Jeff Daniel, collegehire.com
“Talent” and Work Space:A Grossly Neglected Connection!
“Imagine working for a company that not only understood that the best ten hours of your day
are spent at work - but did everything in its power to make them energizing, rewarding and
productive as possible. Imagine coming to work each day in a building that greeted every
person as a creative, entrepreneurial, exciting person.”
Rosemary Kirkby, Lend Lease,proposal for headquarters of MLC
“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
“The boundaries for acceptable weirdness have
dramatically expanded.”
Michael Schrage
Axiom: Never hire anyone without an aberration in their
background. (Find the One Ton Cookie Man!)
A Connoisseur of Talent …– Recruits M.I. (Gardner: Logical-mathematical,
linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, interpersonal-others)
– Recruits arts!– Becomes de facto C.D.O. (Chief Diversity Officer)– Turns the pay scale upside down! / Pays Talent!– Rewards & Promotes all on Talent
Development Skills!– Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)
“Every school I visited was participating in the systematic suppression of creative genius.”
“From cradle to grave the pressure is on: BE NORMAL!”
Gordon MacKenzie
“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
T.T.D.
Use the two Connoisseur of Talent slides as a guide for
creating a Formal Talent Development Plan
Notes Page
• Literally use the items on the two slides as a formal check list to measure yourself [quantitatively] against.
“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”
H.R. to H.E.D. ???
HumanEnablement Department
Attributes of Those Who “Made” the 10th Grade History Book
–Committed!–Determined to make a difference!–Focused!–Passionate! –Irrational about their life’s project!–Ahead of their time / Paradigm
busters!–Impatient! / Action Obsessed
Attributes of Those Who “Made” the 10th Grade
History Book –Made lots of people mad!
–Flouted the chain of command!
–Creative / Quirky / Peculiar! / Rebels! / Irreverent!
–Masters of improv / Thrive on chaos / Exploit chaos!
Attributes of Those Who “Made” the 10th Grade History Book
–Forgiveness > Permission
–Bone honest!
–Flawed as the dickens!
– “In touch” with their followers’ aspirations
–Damn good at what they do!
Just Say “No” to “Grout”!
Participant: “Don’t you need ‘grout’ between the tiles?”
TP: “No!” [med staff, NFL Special Teams,waiters,
PFCs, cymbals player, bit parts, waiters]
TP’s Ideal Job:
Head of Housekeeping!
“Conformity is the enemy of freedom
and the jailer of growth.”
J.F.K.
Flair! Sparkle! Don’t call me
“Competent”!
Yes!
Director of Bringing in the Really Cool People
All You Need to Know?
Chief Evangelist For Really Neat Stuff
Director Of Bringing In The Really Cool People
T.T.D.
STEAL THESE TWO JOB TITLES!
Talent War Y2K!
–All out!/ Time consuming!–Never ending!/ Unwinnable!–Includes everybody!/ Everybody’s
game! (“We’re all in sales.”)–Expensive!–Cool!/ WOW!/ Fun!/ Creative!–Strategic!/ Core competence!
Talent War Y2K!
–Basis of Brand!/ WHO WE ARE!
–Brand You within Brand Us!
–Encompassing!/ Cultural! (KEWLNESS: mine v. yours)
–Substantive!/ “The best Projects win!” [Cairo 12-99]
Big Co.: The Saving Remnant
Toy Store*Resources
PeopleDistribution Channel(s)
* “Make your own McKinsey” (AP)
Talent = Brand
Brand Outside=
Brand Inside
“Emotional values are replacing physical attributes as the fundamental market influence.”
“This book is concerned with self-worth and belief.”
“In the international market, it is no longer products that compete, it’s concepts.”
“Only with a strong spirit at its foundation can a company achieve strong market position.”
Jesper Kunde, Corporate Religion
TRUST*
*Now … more than ever!
T.T.D.
Construct a formal “Great War for Talent
Strategy” for your unit!
Notes Page
• Key word: FORMAL!
Seminar Y2K
Message: Distinct … or
Extinct!
Brand Outside
Context:
No “Commodities”!
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, coming up with similar ideas, producing similar things, with similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
6 Sigma or “Jazzy Offerings”?
WSJ/2-9-00: Nokia extends market share lead [22.5% in
’98 to 26.9% in ’99] over Motorola [19.5% to 16.9%]
The “10X/10X Phenomenon”
10 Times Better/
10 Times Less Different
T.T.D.
Discuss: Is “10X/10X” rampant in your
industry?
Notes Page
• Are you frustrated? That is, doing “much better work” … but not standing apart from the herd? Hint: This suggested analysis pertains to the internal Training Dept. as much as to the New Products gang. BE BRUTALLY HONEST CONCERNING THE DEGREE TO WHICH “WE REALLY STAND OUT” … OR DON’T!
TP’s Campaign Y2K
Just say [shout]
“No!” to the “inevitable
commoditization” of anything.
Aarrgh!
“Quality is conformance to requirements, not
goodness.”
Phil Crosby
“When we did it ‘right’ it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
Pretzel Crumb-less-ness Plus …
“The Ritz Carlton Experience enlivens the senses, instills
well-being and fulfills even the unexpressed wishes and needs of
the guest.”
from the Ritz Carlton Credo
“We want to create
waves of lust for our product.”
Andy Grove (on the Pentium Processor)
“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
What Jerry Should Have Said???
“You do not merely want to be the best of the best, you want to be considered in conformance with
requirements.”
Lust Hierarchy
Satisfy … Conform to Requirements … Exceed
Expectations …Delight! … WOW! … Lust! …
ONLY ONES WHO DO WHAT WE DO!
Nirvana!
- Nordstrom- Four Seasons
- Adirondack Guide Boat- OXO
- Ziplocs
Why?
Cool!/Surprising!Reliable!
Friendly!/Comfortable!Aesthetically pleasing!
T.T.D.
And your favorites?
Why? (Pay attention to the flavor of the words you use)
Translation to your/ “finance world,” etc.?
Notes Page
• Think about the words you use to describe “stuff” you really LOVE. Do those terms apply to your unit’s products and services? If you talk about a “compelling” movie or novel or theatrical performance, why not a “compelling business process”?
T.T.D.
What words do you & yours use to describe Customer
Contentment? [Way] beyond “satisfaction”?
[DO SUCH WORDS MATTER?]
Notes Page
• PLEASE [REDUX]: PAY LOTS OF ATTENTION TO WORDS … AND THE EMOTIONAL “SIGNS” THEY CONNOTE. [TomWorld: What applies to a Detroit Red Wings “performance” ought to apply to a “Purchasing Dept. performance”!
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
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
Early Customer Rejection
Post-Its [12 years!]Chrysler Minivans
VCRsFax machines
FedExCNN
Heart-assist pumpsEtc.
Source: Fortune
Good = Bad/ 1 of 30,000
“We are crazy. We should do something when people say it is
‘crazy.’ If people say something is ‘good’, it
means someone else is already doing it.”
Hajime Mitari, Canon
“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
“Lead” customers!
K2K redux!
T.T.D.: Do You K2K?
Are you working with [numerous] weird, far out customers? [As
opposed to “biggest” customers?]
Notes Page
• Trust me! You will be as Cool as your Coolest Clients. Cool Clients co-invent the future with us. Soooo … WHAT’S YOUR COOL CLIENT PORTFOLIO LOOK LIKE? [Hint: “Biggest” are rarely “coolest.”]
Benchmarking, Perils of …
“The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before;
he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends
him on the spot.”
Mark Twain
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
T.T.D./Sooooo…
Are you pushing your customers? [Internal or
external.] ARE YOU ENGAGING THEM IN A
JOINT VENTURE-JOURNEY INTO TOMORROWLAND?
Notes Page
• No bull: Evaluate EVERY Client Relationship. Is EVERY CP/Client Project a “test”? That is, an effort to explore Uncomfortable-But-Important-Stuff?
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 2:Master
E-Commerce!
$35,000,000. = ???
Dell’s Web sales … daily
350,000 = ?????
New items going on sale at eBay …
daily (12-99)
[AOL delivers more mail than
the USPS!
Source: Fortune 2-00]
2X = 100 days (Internet traffic)
2X = 9 months (network capacity)
Source: Red Herring (1-00)
Time to 50M Users
Radio … 38 years TV … 13 years PC … 16 years
Internet … 4 years
Source: Business 2.0 [01-00]
T.T.D.: Study!!
Read: Business 2.0Red Herring
Wired
Notes Page
• YOU MUST [M-U-S-T] BECOME AN AVID INTERNET STUDENT! PERIOD! SO … HOWYADOING?
Tomorrow Today: Cisco!
$7B of $10BSave $500M (service and tech
support)
C.Sat e >> C.Sat HCustomer Engineer
Chat Rooms($1B?)
And Larry?
Business 2.0: “20 Industries About To Be Fossilized by The Net” (3-99)
Travel Agents ($2B now, $30B in 2003); Apparel (1-21); Autos (4-213);
Home Electronics (1-21); Paper and Office Supplies (1-65); Food (<1-54); Utilities (7-170); Computing (20-400);
Newspapers ($5B of $19B classifieds)
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.)
The Motley Fool Secret?
“Strangers helping strangers”“Fools’ Logic,” IW
T.T.D.: Message!
COMMUNITY!/ COMMUNITY SERVICES!
Notes Page
• Web Secret No.1: COMMUNITY – as in, User Community – RULES! So: How do your online Community Development Activities rate?
B2B
1999 – 2004: 50X
2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)
T
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
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
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
“Autoweb. Take the Wheel.”- Advertising Age
Psych 101: Strongest Force on Earth?
My need to be in perceived control of
my universe!
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
“IT enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee 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
“Welcome back, Tommy!”
T.T.D.: Message!
THE CUSTOMER IS IN CONTROL!
Notes Page
• Do you Joyfully “allow” the Customer to lead you around by the nose? Is this truly his/her site? Her/his “home”?
“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
“Most companies would do more business on the Internet if they
fired their entire marketing department and replaced it with
people who could produce interactive content that actually made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
Red Herring (01/00)
75% of online shoppers don’t complete their
purchase!
Nielsen/Designing Web Usability
All Web projects are customer-interface projects! Simplicity rules!
Make it easy for customers to perform useful tasks!
Less “cool,” more useful!Speed rules!
Nielsen/ Continued
Must work … on a small screen!Must work … w/o graphics loading!
“Scannability” rules! [Users pick out key words.]
Navigation page: No scrolling!Remember: 25% to 50%
“successful use”
T.T.D.: Message!
SIMPLICITY!
Notes Page
• READ JAKOB NIELSEN’S BOOK! Hold your site to the Exacting Nielsen Standard! [Be ruthless … on yourself.]
T.T.D./Read This!
Jakob NielsenDesigning Web Usability:
The Practice of Simplicity*
*www.useit.com
“The Net hasn’t lived up to its hype. It’s a distant, cold, alien,
threatening world called ‘cyberspace.’ The challenge is to
make the Net into something intimate, warm, friendly, useful,
personal.”Carly Fiorina, CEO, HP @ Comdex ’99
T.T.D.: Message!
Friendliness!
Notes Page
• Is our Site – including B2B sites – “a place called home”?
“Even if executives of established businesses grasp the impact of new
technologies … they still face a massive competitive disadvantage precisely
because they are incumbents. … They do complex financial calculations and get
bogged down in internal political debates. Insurgents have no such
inhibitions.”
Philip Evans & Thomas Wurster, Blown to Bits
“ … if they set up a completely independent organization and let that organization attack the
parent.”
Clayton Christensen, The Innovator’s Dilemma
The Way “They” Talk!
“I have this chance for … changing the world.”
Marco Boerries, Sun, re StarOffice (Business 2.0, 2-00)
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.” Jack Welch
Change … Or Die!
“Most of the brick and mortars look at the Internet as an add-on business … until they get a major scare. Then they either
change or die. … You have to put all your heart and soul in that direction, the way
Charles Schwab and Dell did.”
Flip Flipowski, Devine Interventures (Red Herring)
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.**Reinvent our marketspace!
T.T.D.
Most important Y2K question: Are you &
yours “dealing with” the Web … or “embracing it”
as “central to our being”?
Notes Page
• SPEND A LOT OF TIME ON THIS
“TTD”!
Web Strategy: GE Power Systems
“Launch and Learn”(4 sites in 30 days)
Goodhome.com
Ready.Fire!Aim.
Ross Perot, Wayne Calloway, Harry Quadracci, et al.
[He who has the quickest O.O.D.A. Loops* wins!
*Observe. Orient. Decide. Act. / Col. John Boyd]
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 3:
Women Rule!
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 75%Etc.
Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,
finances, education.
Source: Business Week (11-99)
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
Most Under-reported story!
9M*/20M+/$4T [> Germany]
* 400K in ’72; 132% since ’92;source: NFWBO, Cognetics
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%
2000 … 50%
OPPORTUNITY
NO. 1!*
[* No shit!]
T.T.D.: Measure!
How clear are you about your demographics … in
particular, share of women purchasers [for
you, for the industry]?
Notes Page
• Are you getting an “unfair share” of women purchasing your service or product? IF NOT, WHY NOT? [Most of the other schmoes are, after all, asleep!]
T.T.D.: Study!
Does anybody in your industry do “it” right?
Brilliantly?
[If so … how?]
Notes Page
•STUDY!
[Damn it!]
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!]
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
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
Marketing to Women: Help Them Save Time!
80% … work86% … cook
58% … run errands with kids38% … take child to school
21% … go to the gym21% … take outside classes
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
T.T.D.
Do you [clearly] understand the
difference between men’s and women’s purchasing habits?
Notes Page
• Again:
STUDY! [It
took me years to get a handle on “this stuff.”]
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
T.T.D.
DO YOU REALLY “GET IT”?
Notes Page
• Spend a lot of time talking about this. THE POTENTIAL PAYOFF IS ENORMOUS … IF YOU ARE WILLING TO INVEST ACCORDINGLY.
T.T.D.
DO YOU UNDERSTAND [“GET”]
THE ENORMITY OF THIS OPPORTUNITY?
Notes Page
•Discuss … AT LENGTH!
T.T.D.
What would it take to get you & yours to “Go For
It”?
First steps?
Notes Page
• What could you do – in the next 30 days – to begin to test these ideas? Define 10 actions!
Speaking of Enormous
[Missed] [Huge] Opportunities ...
74/55
“At each stage of their lives, the needs and desires of the baby
boomers have become the dominant concerns of American business and popular culture. If you can anticipate
the movement of the baby-boom generation’s life-span migration, you
can see the future.”Ken Dychtwald, Age Wave
Aging/“Elderly”
2X growth rate$$$$$$$$$$$$
“I’m in charge!”“Experiences” vs. Products
Design revolution!
Good source: Ken Dychtwald, Age Wave
Priorities: Aging/“Elderly”
Experiences … Convenience … Comfort
… Access … Respect!
“Any student who combines an expertise in gerontology with, say, an M.B.A. or law degree will
have a license to print money.”
Newsweek
T.T.D.
SOOOOO … WHERE ARE YOU ON THIS
ONE??? [REMEMBER: 74M!]
Notes Page
• Listen up: THIS IS ANOTHER BIGGIE! Think about it. Discuss it. Collect data. [Become a “student.”] Experiment.
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 4:
Design Rules!
And Tommorow …
“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 Ogha
“Design is treated like a religion at BMW.”
Fortune (10/98)
Drop-dead Charm!
“The new Beetle fails at most categories. The only
thing it doesn’t fail in is drop-dead charm.”
Jerry Hirshberg, Nissan Design International
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
Check Out the Language:
“Tomorrow it’s design …”“Design is the only thing …”
“Design is … religion ...”“Drop-dead charm …”“Object of desire …”
“Fundamental soul …”
T.T.D.
Where do you stand on design?
[1 = Who, me? 10 = Preoccupation.]
Where do you stand on design-as-soul?
Notes Page
• I’m at a bit of a loss here. I DON’T KNOW HOW TO “MAKE YOU” “GET” THIS. I think it is of the Utmost Importance. I want you – at least – to become “aware” of the Power of Great Design. And … I do [fervently] believe that Great-Design-Is-Soul.
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
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
One-sixth Second per Item!
“During the 30 minutes you spend on an average trip to the supermarket,
about 30,000 products vie to win your attention and ultimately to make you
believe in their promise.”
Thomas Hine, The Total Package
[ Design Moments!
Shopping cart =
2X heavy items
Source: Wall Street Journal (11-24-99) ]
T.T.D./Message:Services are Not Intangible!
You “give off” hundreds of design cues … daily!
YOU ARE A DESIGNER!
Notes Page
• List 100 [!] “design cues” that you give off! [Okay, start with 25.]
Graceful language!
Susan Sargent Designs:
PLEASE COMPLAIN!Thanks for your order!
We dearly want everything to go p-e-r-f-e-c-t-l-y!
If the order was late. Or wrong.Or if any of the goods are damaged in the
slightest.Or if you’re just having a lousy day and
want to unload on someone …
Call our Customer Care Hotline!
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.
Notes Page
• DO THIS! USE MY TERMS! [Beauty … Grace … Clarity.] Be quantitative. [PLEASE.]
WEB Words: TP
NO CLUTTER!
“When you click on Yahoo! today you get the same
simple, nearly graphics-free home page you would have seen had you clicked three
years ago.”Fortune, on Zod Nazem,
Yahoo! CTO
No Clutter! CNNSI.com developed an increasingly common
problem. In the midst of adding material, its design went bad. CNNSI became so packed with links, new sections and graphics that it actually became hard to find something as basic as the
score of last night’s ballgame. Then it got worse. The team tried to make new graphic elements
eye-catching enough to stand out from the site’s clutter. But the surfers ignored them, thinking
they were ads.”Business Week [9-99]
T.T.D.: Campaign Y2K!
Plain, energetic, sparkling English!
Notes Page
• Spend … a lot … of time talking about this. MAKE IT YOUR EVERYDAY STANDARD FOR …
EVERYTHING … THAT
EMERGES FROM YOU/YOUR UNIT.
T.T.D./Design “Awareness”!
STEP No. 1: NOTEBOOK![Start recording the awesome
and the awful.]
Notes Page
• THIS IS MY “SECRET.” I am not “artistic.” But … I did teach myself to be … CONSTANTLY AWARE. The Key: My [simple] notebook! [I’VE NOW BEEN “RECORDING” FOR ALMOST TEN YEARS!]
Huge Opportunities [That Damn Few Are Pursuing!]
Women!The rapidly aging population!
Design!
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
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 Theater & 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
Safe, On Time and …
“We defined personality as a market niche. We seek to
amuse, to surprise, to entertain.”
Herb Kelleher, Main Man, LUV Airlines
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
Mantra: “Any good can be ing-ed”
the driving experiencethe pumping experience
the sitting experiencethe reading experiencethe washing experiencethe cooking experience
Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & Every Business a Stage
“What’s the plot?”
Freeman Thomas, designer
T.T.D.
WHAT’S THE [your] PLOT?
Notes Page
• WHAT IS YOUR STORY? [Be specific!] Message: This applies to every [Finance] project!
“Cars are not simply to get you from place to place. They ought to
be entertainment. We are sort of in the entertainment
business.”
J Mays, Ford
“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
T.T.D.
Carefully examine/think through every aspect of “the experience of us.”*
*This holds for the Finance Dept. as well as the corporation’s “products”
Notes Page
• This demands a lot of care! THINK OF YOURSELF AS A DRAMATIST, A DIRECTOR. THINK ABOUT “THE WAY WE COME ACROSS.” Be … ridiculously … specific! [God is in the Details.]
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!Bottom Line: Glorious Age of the
BRAND!
[ “Take Home Value”Road Warriors: Cast Off Your Blands/
Free Your Taste Buds
Tabasco Sauce Dijon Mustard
Balsamic Vinegar ]
Brand Outside
BRAND POWER!
T.T.D.
How do you [& yours] define
“brand”?
Notes Page
• It sounds Elementary. It’s not! DISCUSS:
WHAT IS A BRAND [THAT MATTERS]?
Brand Defined
DistinctionExcellence
Emotional “Signature”Trustworthiness
ConsistencyShorthand
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]
“What Matters to Online Buyers”*
#1: Product brand
#2: Retailer brand
*Source: Business 2.0
No Room for Brands?
NikeSaturnCNN
America OnlineCharles Schwab
StarbucksThe Gap
IntelEtc.
T.T.D.
HAVE YOU GENUINELY EXAMINED THE ENORMITY
OF “BRAND POWER”?
ARE YOU A NO-BALONEY STUDENT OF BRANDING?
Notes Page
•As usual: STUDENT-HOOD MATTERS!
Brand = Trust!
“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”
The Economist
“Branding is not a problem if you have the right mentality. You go to your team and
you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded
sub-$200 watch market, they made it into a brand name, named after the most
irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
“Salt is salt is salt. Right? Not when it
comes in a blue box with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably
the same as many other products on the shelf.”
Tom Asaker, Humanfactor Marketing
T.T.D./Calling the Corporate Shrink!
“Organizational Psychotherapy”/
WHO WE ARE!
Notes Page
• This is The Big Enchilada:
SPEND – lotsa – TIME ON IT!
“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
“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and
diversity, choices become increasingly informed by belief. [Consumers] want to
know who is behind the products that they buy. They want to know the
company. They want to know what you think.”
Jesper Kunde, Corporate Religion
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.”
Brand = Special = Passion =
Connection = Caring*
* (Way) beyond “market research”
“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 one 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
“In the funky village, real competition no longer revolves
around marketshare. We are competing for attention –
mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
T.T.D./Assignment Y2K
Write an essay on “Who we are.”*
* Jesper Kunde, Corporate Religion
Notes Page
•DO IT! 500 words. [And
then: 10 words.]
“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
The Ten Rules of Radical Marketing
CEO must “own” the marketing function!Hyper-lean Mktg. Dept. (No filters!)
CEO hangs out with customers!Love + Respect your customers!
Just Say No … to market research!Hire only passionate missionaries!
Create a Community of users-customers!Emphasize one-to-one marketing tools!
Celebrate craziness!Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)
T.T.D./Message Bran[d]son:
Live the Brand!*
*How? [Be specific! As of … NOW!]
Notes Page
• YOU ARE THE BRAND! How – exactly – has that been expressed by your actions … TODAY?
[IN THE LAST 45 MINUTES?]
Brand Leadership
Lead Out Loud!
ENTHUSIASM RULES!
“I am a dispenser of enthusiasm”/ Ben
Zander
“If you want to be persuasive, you have to generate a high level of energy. It’s energy that makes you visible, that gives you
presence. I call it ‘performance energy,’ and it’s the basis of dynamic leadership.
There is nothing artificial about it. Performance energy is an authentic part of who you are. You
just have to access it.”
Martha Burgess, Theater Techniques for Business People
“Leadership is a performance. You have to be
conscious of your behavior, because everybody else is.”
Carly Fiorina
T.T.D.
Evaluate yourself [unsparingly] as an
[enthusiastic] “performing artist”!*
*In today’s dealings. [Use outside assistance?]
Notes Page
• You don’t have to be Bill Cosby. You do have to understand that … ALL LEADERS
ARE ON-STAGE … ALL THE
TIME! [And: “Leader” does NOT mean “boss.” It means anyone trying to “Get Cool Stuff Done.”]
T.T.D./Follow Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF AT RISK!
Notes Page
•
Sooooooo …… ???
“If you ask me what I have come to do in this world, I
who am an artist, I will reply, I am here to live my
life out loud.”Emile Zola
“I’d rather regret the things I have done than the things I have not.”
Lucille Ball
How sweet it is!
“If things seem under control, you’re just
not going fast enough.”
Mario Andretti