Post on 05-Jan-2016
Tom Peters2000: Distinct or … Extinct
The Third annual Conference on
Customer Service Management
Orlando/13November2000
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
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
The [New] Ge Way
DYB.com
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
White Collar Revolution!
“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
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.”
Advance Paradigm
Data on 165,000,000 prescriptions per year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)
Brand Inside
Brand Work: The WOW Project
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Brand Inside
Brand You: 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
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
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, COO, Enron
“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)
“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
“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)
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
Mantra2000
Talent = Brand
New Economy: 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, UA233• 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
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“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
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
Brand Outside
Strategy 1:
Hitch Your Wagon to Pioneers!
“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
Brand Outside
Strategy 2:Use E-Commerce to
Re-invent Everything!
OVERVIEW
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Savings in service and support from customer self-management: $500M
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 SERVICES!/ CUSTOMER CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
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
SUMMARY: REINVENT
EVERYTHING
“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]
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
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“Banking is
necessary. Banks are not.”
Dick Kovacevich, Wells Fargo
Brand Outside
Strategy 3: Fighting Back via
Systems Integration!
B2B
1999 – 2004: 50X
2004: $7.4TSource: GartnerGroup (per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint$240B (+$500B)
I.P.O.
Solectron, IBM, Nortel, Matsushita, Seagate, Etc.
E2Open.com
$700B
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.
Message: “BOX” SELLERS LOSE!
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers
Consulting bus! (31,000 bods)
“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
Brand Outside
Strategy 4:
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
“The [Starbucks] Fix” Is on …
“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is
that place that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride
through small towns and have people be afraid of him.”Harley exec, quoted in Results-based
Leadership
The “Experience Ladder”
Experiences Services
Goods Raw Materials
1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1985: Party @ Chuck E. Cheese (experience economy) $100.00
Brand Outside
Strategy 5:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 80%Consumer Electronics … 51%
Cars … 50%+/80%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
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS
SEMINAR. [PLEASE: THINK ABOUT IT!]
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
“Men and women don’t think the same way, don’t communicate the same
way, don’t buy for the same reasons.”
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,
they make connections.”
Faith Popcorn
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
“Honey, are you sure you have the kind of money it takes to be looking at a car like
this?”
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!”
Speaking of Enormous
[Missed] [Huge] Opportunities ...
Subject: Marketers & Conventional Wisdom
It’s 18-44, stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is stupid, stupid!
2000-2010 Stats
18-44: -1%55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Brand Outside
Strategy 6:Embracing an
Age of Self-Determination
The Individual
“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
The Organization:
Seller’s [Talent] Market
“Talented people are less likely to wait their turn. We used to view young people as trainees; now
they are authorities.”Ed Michaels, War for Talent (05.17.00)
Web World: POWER TO
THE PEOPLE
The control revolution. The potentially monumental shift in control from institutions to individuals made possible by new technology such as the Internet. The conflict over such
change between individuals and powerful entities (governments,
corporations, the media).
Source: Introduction, The Control Revolution, Andrew Shapiro
Women Get Respect … and
Take Charge
“Greater opportunity for women is probably the most significant gain for human freedom in
the last century.”Andrew Sullivan, The New Republic
The Elderly Get Respect … and
Take Charge
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Our Biggest Industry: The Patient Takes
Charge
“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00
1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”
YES, NURSE. ME GOOD PUPPY DOG.
1995: “HMO will take care of you.”
BULLSHIT.
2005: “I will take care of me. I’d like your expert help.”
Sooooo …
Is your strategy centered around customer-client empowerment & self-
determination? Hint: This means letting go
of traditional sources of power!
Brand Outside
Strategy 7:
BRAND POWER!
“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
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
“WHO ARE YOU [these days] ?”
TP to Client
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Weird Rules!
Passion Rules!
Renewal = The “High S.D.” Org/IndividualPioneer Acquisitions Pioneer Customers
Pioneer Assignments/Pioneer Projects [F2F/K2K]Hire Weird [Diversity]/Train Weird/
Promote Weird/Acquire & Cherish & Pay & Promote [“Six Sigma”] Talent [Fast]
Weed Un-weird [“One Sigma” “Talent”] Hang with Weird [Univ. of Weird]/Lunch with Weird/
Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F.
Sense of Humor [Cherish Thine Failures]
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander