Tom Peters Making Money … for Our Customers Seagate/08.08.2001.
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Transcript of Tom Peters Making Money … for Our Customers Seagate/08.08.2001.
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Tom Peters
Making Money … for Our Customers
Seagate/08.08.2001
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<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift
1800s: > prior 900 years1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th
century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture
in the fabric of human history”)
Ray Kurzweil, talk april2001
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Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the
Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the
Market
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Message*: Are all CEOs bozos? Was Darwin a
genius, or what? So, Boss Man, whadda you say
about “risk taking” now?
*And “all that” (2 of 100; 12 of 500) was in relatively placid times.
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Forces @ Work I
The Destruction Imperative!
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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
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“Good management was the most powerful reason [leading firms] failed to stay atop
their industries. Precisely because these firms listened to their customers, invested aggressively
in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied
market trends and systematically allocated investment capital to innovations that promised
the best returns, they lost their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
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The [New] Ge Way
DYB.com
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The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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Success Secret #1
No: “Eternal vigilance”
Yes: “Eternal skepticism”/ “Honor the assassins”
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Brand Inside
Brand Org: Lean, Linked,
Internet-driven, Virtual
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White Collar
Revolution!
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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Success Secret #2
Embrace the enormity of the
change.
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Brand Inside
Brand Work: The Professional Service
Firm Model
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So what will be the Basic Building
Block of the New Org?
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Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
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“P.S.F.”: Summary
H.V.A. Projects (100%)Pioneer Clients
WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”
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Success Secret #3
All-groups-as-HVA-players. No “hangers
on”.
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Brand Inside
The Heart of the Value Creation Revolution:
PSF Unbound!
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11 September 2000
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09.11.2000: HP bids
$18,000,000,000for PricewaterhouseCoopers
Consulting business!
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[“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
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HP … Sun … GE … IBM … UPS … UTC …
General Mills … Springs … Anheuser-Busch …
Carpet One … Delphi … Etc. … Etc.
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“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
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“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
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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
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“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. Sites to 6,000 NA dealers)
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Springs
Collections.Flexible sourcing.
Packaging.Merchandising.
Promotion.Design.
Systems & Site mgt.
= Turnkey.
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Success Secret #4
Winners will be full-scale strategic partners in
designing & executing CRSs/Customer
Revolution Strategies.
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Brand Inside
Brand You: Distinct …
or Extinct
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Brand You, Big Time!
I AM AN ARMY OF
ONE
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Success Secret #5
Winners will [empower themselves to] be full-scale strategic partners in
designing & executing CRSs/Customer Revolution
Strategies.
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Bill Parcells’ World/ Brand You World!
BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
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Brand Inside
Redefining the Work
Itself: The WOW Project
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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Words: WOW! Insanely great! BHAG (Big Hairy
Audacious Goal). Make Something Great.
Astonish Me. Make It Immortal.
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“Learn not to be careful.”
Photographer Diane Arbus to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
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Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001
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!
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Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
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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
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Success Secret #6. Remember …
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
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Success Secret #6A
If you can’t say “big hairy audacious
goal” with a straight face, then do Seagate
a favor and resign.
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Brand Inside
Brand Talent: The Great War for Talent
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“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, CEO, Enron
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From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
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Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
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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
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“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
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Enron
COO: Louise Kitchen, F, 29; created
EnronOnline as “Skunkworks”
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The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
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“Are there enough weird people in
the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)
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Talent Leadership Model 24/7:
Sports Franchise GM
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33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P ,26 games. Sparky
Anderson—1 season.
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Why Don’t Most Biz Mgrs. Think This Way?
“Coaching is winning players over.” *
Phil Jackson
*Not: “planning,” “implementing,” “clear communication,” “getting the org chart right.”
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Goal of the Year No. 1*: Find-Develop-Mentor
ONE Extraordinary Person.
*CEO, large financial advisory firm, April 2001
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Success Secret #7
Talent scouting & development are special
skills. Honor them. Reward them. Obsess on
them.
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Brand InsideReprise:
THINK WEIRD: The High Standard
Deviation Enterprise
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Saviors-in-Waiting
Disgruntled CustomersFringe CompetitorsRogue Employees
Edge SuppliersWayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue
Employees
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“The highest performing companies have well-developed systems for killing ideas
their customers don’t want. As a result, these companies find it very difficult to invest adequate resources in disruptive
technologies—lower margin opportunities that their customers don’t want—until they
want them. And by then it’s too late.”
Clayton Christensen, The Innovator’s Dilemma
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Success Secret #8
Think weird. Partner with weird. Lunch
with weird. [Hint: These are weird times.]
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Forces @ Work II
The Sameness Trap
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“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
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“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
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Success Secret #9
Beware six-sigma parity!
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Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
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Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early
1999: 30 times a day. Late 2000: 30 times per … minute.
Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s:
2 weeks, 2 per week. Late 2000: 5 such deals per day
Source: www.ecompany.com (1/2001)
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A DREAMER’S MEDIUM!
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“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
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I’net …
… allows you to dream dreams
you could never have dreamed
before!
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“Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the
number of people they employ … all of that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
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Success Secret #10
Think big. Think humongous.
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Brand Outside
Strategy 2:
It’s the Experience!
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“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
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“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
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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
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
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Message: “Experience” is the
“Last 80%”“Experience” applies to
all work!
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HP Revisited
PWC Consultants lead Business Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service Economy”)
Terrific Servers (“Goods Economy”)
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“Experience”: Home to [tomorrow’s]
Market Cap!
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Success Secret #11
Think “experience.”
Think big. Think humongous.
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Brand Outside
Strategy 2A:
A Case in Point: The Four Seasons
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Why I Stay at the Four Seasons Chicago
Comfort. (“It’s
good to be home.”)
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Why I Stay at the Four Seasons Chicago
The doorman. (Recognizes me.)
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“The two most powerful things I know
in existence: a kind word and a
thoughtful gesture.”Ken Langone, CEO, Invemed Associates
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Why I Stay at the Four Seasons Chicago
The access to technology is
excellent. (I’ve trained them in this!)
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Why I Stay at the Four Seasons Chicago
The bottle of Chalone chardonnay they leave
for me. (They “remember.”)
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Why I Stay at the Four Seasons Chicago
The fact that the GM always puts his desk
chair in my room when I’m in town.
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Why I Stay at the Four Seasons Chicago
The fact that I feel okay arriving in shorts and a baseball cap. (Even
though they serve princes & sheiks.)
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Why I Stay at the Four Seasons Chicago
No hairs in the bathtub. (Operational
excellence.)
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Why I Stay at the Four Seasons Chicago
The Brand. (I trust Izzy.)
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Why I Stay at the Four Seasons Chicago: Payback!
It ain’t free.
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Success Secret #12
This “technology stuff” is very
cool. But don’t forget the “human stuff.” [It rules in the
end???!!!!]
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Brand Outside
Strategy 3:
BRAND POWER!
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“WHO ARE YOU [these days] ?”
TP to Client
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“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
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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
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“A great company is defined by the
fact that it is not compared
to its peers.”Phil Purcell, Morgan Stanley
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“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
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“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25
words.) (2) List three ways in which we are UNIQUE … to our Clients.
(3) Who are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/”them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:
Try ’em on a skeptical Client!
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1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (“Dramatic” = DRAMATIC. Q.E.D.)
Source: Jump Start Your Business Brain, Doug Hall
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Success Secret #13
Are you very/absurdly clear
as to the … “DRAMATIC
DIFFERENCE”?
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Brand Leadership
Passion Rules!
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,
Engagement, Commitment, Great Causes & Determination to Make a
Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
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“You must be the change you wish to see in the world.”
Gandhi
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“A leader is a dealer in hope.”
Napoleon
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Ben Zander: “I am a dispenser of
enthusiasm.”
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“Create a Cause, not a ‘business.’
”Gary Hamel, Fortune (06.00), on re-inventing a
company (Exemplar #1: Charles Schwab)
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“Let’s make a dent in the universe.”
Steve Jobs
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Have you changed
civilization today?Source: HP banner ad
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Sales2001
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The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
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Great Salespeople …
8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)
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Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
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Great Salespeople …
21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople in great technology companies can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!
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Success Secret #14
“Let’s make a dent in the universe.”