Rollercoaster Days: Learning to Rock & Roll!PMMI/West Palm Beach04.03.20011“There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.”Steve Case2“In 25 years, youll probably be able to get the sum total of all human knowledge on a personal device.”Greg Blonder, VC was Chief Technical Adviser for Corporate Strategy AT&T Barrons 11.13.20003 prior 900 years1900s: 1st 20 years 1800s2000: 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 4“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)5“We are in a brawl with no rules.”Paul Allaire6The Kotler Doctrine:1965-1980: R.A.F.(Ready.Aim.Fire.)1980-1995: R.F.A.(Ready.Fire!Aim.)1995-?: F.F.F.(Fire!Fire!Fire!)7John Roths “Rules” Nortel1. Our strategies must be tied to leading-edge customers on the attack.2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.3. It doesnt matter whether you develop or acquire leading technology. Our job is to provide the technology and products our customers need.4. Success is achieved by leading change, not waiting for it.5. We are paranoid about our leadership willing to cannibalize our own products to maintain our edge.Source: Abridged from The Wall Street Journal (07.25.00)8“It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)9Read It Closely: “We dont sell insurance anymore. We sell speed.” Peter Lewis, Progressive10JY: Who do you fear most, big companies or start-ups?JC: I have a list with a dozen little companies Im tracking closely. Guys who can start with a fresh sheet of paper have an enormous advantage technologically. We have to carefully integrate new capabilities into our existing product line, they dont.”Source: Jeffrey Young, Cisco Unauthorized11StructurePart I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership12Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership13Forces Work IThe Destruction Imperative!14Forget“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock15 “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”Peter Job, CEO, Reuters 16“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, Cisco17The New Ge WayDYB.com18The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M19Brand InsideBrand Org: Lean, Linked, Electronic & Malleable20 White Collar Revolution!21108 X 5vs. 8 X 1* 540 vs. 8 (-98.5%)22RR on “Assetless” J.B. Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into whats available with insights into the customers individual needs and preferences.”23Cisco, Dell =Brand-owning companies who sell Customer SatisfactionSource: David Schneider & Grady Means, MetaCapitalism e.g.: Cisco owns 2 of 38 assembly plants24Brand InsideBrand Work: The Professional Service Firm Model, The WOW Project, and The New Worker25So what will be the Basic Building Block of the New Org?26Answer: PSF!Professional Service FirmDepartment Head to Managing Partner, HR IS, etc. Inc.27“P.S.F.”: SummaryH.V.A. Projects (100%)Pioneer ClientsWOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%) When: Now!2809.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersConsulting business! (31K bods)29“These days, building the best server isnt enough. Thats the price of entry.”Ann Livermore, Hewlett Packard30The Raw Material The WOW Project!31“Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec32“If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed, and that increasingly means you wont get paid much either.”Michael Goldhaber, Wired33Minimum New Work SurvivalSkillsKit2000MasteryRolodex Obsession (vert. to horiz. “loyalty”)Finishing SkillsEntrepreneurial InstinctCEO/Leader/BusinesspersonMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal34“Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years mostly on line.”Peter Drucker,Business 2.0 (22August2000)35Invent. Reinvent. Repeat.Source: HP banner ad36Brand InsideBrand Talent: The Great War for Talent37“When land was the productive asset, nations battled over it. The same is happening now for talented people.”Stan Davis & Christopher Meyer, futureWEALTH38“We have transitioned from an asset-based strategy to a talent-based strategy.”Jeff Skilling, COO, Enron39From “1, 2 or youre out” JW to “Best Talent in each industry segment to build best proprietary intangibles” EMSource: Ed Michaels, War for Talent (05.17.00)40“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)41Message: Some people are better than other people. Some people are a helluva lot better than other people.42“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.”Ed Michaels, War for Talent (05.17.00)43So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager, $3-4M per year. Pay: $135,000 plus $90,000. Net: $2-3M for $50K.Source: Ed Michaels et al., The War for Talent, re Georgia Pacific44What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more.45“Why focus on these late teens and twenty-somethings? Because they are the first young who are both in a position to change the world , and are actually doing so. For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. The Internet has triggered the first industrial revolution in history to be led by the young.”The Economist 12/200046“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) 47“Where do good new ideas come from? Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.”Nicholas Negroponte48The 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 Ogilvy49“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure”Title, Special Report, Business Week, 11.20.0050Women and new-economy management 51The New Economy Shout goodbye to “command and control”!Shout goodbye to hierarchy!Shout goodbye to “knowing ones place”!52Womens Stuff = New Economy MatchImprov skillsRelationship-centricLess “rank consciousness”Self determinedTrust sensitive IntuitiveNatural “empowerment freaks” less threatened by strong peopleIntrinsic motivation Extrinsic53“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 days events? Who is better at keeping in touch with others?”Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson54“Boys are trained in a way that will make them irrelevant.”Phil Slater55Okay, you think Ive gone tooooo far. How about this: DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?56MantraM3Talent = Brand57Whats your companys EVP?Employee Value Proposition, per Ed Michaels et al., The War for Talent58EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward EVP = “The companys fingerprint” = B.P.Source: Ed Michaels et al., The War for Talent 59Goal of the Year No. 1*: Find-Develop-Mentor ONE Extraordinary Person.*CEO, large financial advisory firm, April 200160Brand InsideReprise: THINK WEIRD: The High Standard Deviation Enterprise61Saviors-in-WaitingDisgruntled CustomersFringe CompetitorsRogue EmployeesEdge SuppliersWayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees62Button-down Org H.S.D.E. . Acquire for market shareSuck up to biggest customersPursue “strategic vendors”Bigger is betterAccept assignments as givenHire 4.0s from “top schools”Promote when theyve “paid their dues”Appoint a “prestigious” boardHang out with my palsR.A.F.Be “professional” at all times/Honor thine eldersAcquire for innovationPartner with cool customersSeek out pioneering vendorsBreak it up to refreshReframe all tasks to innovateHire “intriguing,” whereverPromote tomorrow if the work product is weird and WOWAppoint an interesting, headstrong boardTake a freak to lunch todayF.F.F.Stay loose, stay cool/The hell with thine elders63“But dont we need some grout between the tiles?”64N.W.O.: Was Is Is Pine-paneled OfficeAddress: 1 Big Man PlazaSecretarySuit Formal Rank consciousPretense (“Failures are for fools.”)I love “Yes men”Self-containedSeat 9B, UA233Address: Typing: 60 WPMCasual M-FApproachableWe are a HOT Team Screwing up is as normal as breathingI love Misfits!I love partners65Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership66Forces Work IIThe Commodity Trap67Quality Not Enough!“While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,” The New York Times68“We make over three new product announcements a day. Can you remember them? Our customers cant!”Carly Fiorina69“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 Business70“Companies have defined so much best practice that they are now more or less identical.”Jesper Kunde, A Unique Moment71Brand OutsideStrategy 1:Lead the Customer!72“If you worship at the throne of the voice of the customer, youll get only incremental advances.”Joseph Morone, President, Bentley College73“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, Nortel74Brand OutsideStrategy 2:Use E-Commerce to Re-invent Everything!75Tomorrow Today: Cisco!90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships directGross margin: 65%; Net margin: 28%Annual savings in service and support from customer self-management: $550M76Enron 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 daySource: ecompany.com (1-2/2001)77“This is the first meter of a 10-kilometer race. Eventually, all markets will come to resemble todays foreign exchange market.”Hamid Biglari, Head of Corporate Strategy, Citigroup, in “GIGATRENDS,” Wired 04.0178Tomorrow Today: Cisco!90% of $20B; save $550MC.Sat e C.Sat HCustomer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)79Welcome 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 80“One cannot be tentative about this. Excuses like channel conflict or marketing and sales arent 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.com81“Weve put the word out to all of our suppliers: by the end of the year 2000 well only do purchasing over the Internet.”John Paterson, C.P.O., IBM $50B from 18,000 suppliers 82WebWorld = Everything Web as a way to run your businesss innardsWeb as connector for your entire supply-demand chain Web as “spiders web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWeb as entre, at any size, to Worlds Best at Everything as next door neighbor83“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 Perkins84“There is no use trying,” said Alice. “One cant believe impossible things.” “I daresay you havent had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast.”Lewis Carroll85Inet allows you to dream dreams you could never have imagined before!86Brand OutsideStrategy 3:Design Matters!87All Equal Except “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.”Norio Ohga 88“We dont have a good language to talk about this kind of thing. In most peoples 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 Jobs89Design “is” WHAT & WHY I LOVE. LOVE.90I LOVE my ZYLISS Garlic Peeler!91Design “is” WHY I GET MAD. MAD.92Wanted: Dead preferably or Alive: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!93Design is never neutral.94Hypothesis: DESIGN is the principal difference between love and hate! 95THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” Im a cool-stuff guy. I love what I love and I hate what I hate. Openly. But it goes much further, far beyond the personal. Design has become a professional obsession. I - SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT or detachment RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of whether a product-service-experience stands out or doesnt. Furthermore, its “one of those things” that damn few companies put consistently on the front burner.96Design-Minded Company: CredoDesign matters! Everywhere!The Brand Promise rules! Everywhere!All can answer: WHO ARE WE? HOW ARE WE DISTINCT?Words such as beauty & grace & emotion & connection & Wow & adventure are okay twixt 9 and 5.Non-Wow doesnt cut it. Anywhere!We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis on the arts, is part of this. Diversity-R-Us!97Design-Minded Company: Operating PhilosophyAll work is the product of Hot Teams of peers.Hierarchy is minimal, and usually a distraction.We understand that “disrespect” is the ultimate in respect in crazy times.The Work Matters! Wow or bust! All work reflects design-mindfulness & the brand promise.Promotion comes immediately if the work is Wow.NO BULLSHIT. We keep our word to our teammates and other partners.Integrity = No.1 outcropping of design-mindfulness.We are a business. Results matter!98Design Rules! LiterallyPalm Beach Countys U.C.B.* *Utterly Confusing Ballot99Brand OutsideStrategy 4:Women Rule!100?Home Furnishings 94%Vacations 92%Houses 91%Consumer Electronics 51% Cars 60% (90%)All consumer purchases 83% Bank Account 89%Health Care 80%101?80+%102Riding Lawnmowers10348% working wives 50%80% checks61% bills53% stock (mutual fund boom)43% $500K95% financial decisions/ 29% single handed104 $4.8T Japan9M/27.5M/$3.6T Germany105Yeow!1970 1%2002 50%106Read This Book EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys Marigold107“Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons.”“He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.”Faith Popcorn108EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand109“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. ”EVEolution110“Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information,establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.”Judy Rosener, Americas Competitive Secret 111What If “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 todays skills?”EVEolution112STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that womens 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 Peters113Brand OutsideStrategy 5:Welcome to “Old World”!114“ Age Power will rule the 21st century.We are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old115Subject: Marketers & StupidityIts 18-44, stupid!*18-24: XFL116Subject: Marketers & StupidityOr is it: “18-44 is stupid, stupid!”1172000-2010 Stats18-44: -1%55+: +21%(55-64: +47%)118Aging/“Elderly”$“Im in charge!”11950+$7T wealth (70%)/$2T annual income50% all discretionary spending79% own homes40M credit card users41% new cars/48% luxury/5M auto loans$610B healthcare spending74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old120Priorities: Aging/“Elderly”Experiences Convenience Comfort Access Respect!121Trends #1, #2 or #2 & #1,#3: Women, Aging, Greening122Protect the environment: 52%Develop more energy: 36%Equal: 6%No opinion or Other: 6%:Source: Gallup 3-5 March 2001123Brand OutsideStrategy 6:BRAND POWER!124“WHO ARE YOU these days ?”TP to Client125“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 Studies126“Most companies tend to equate branding with the companys marketing. Design a new marketing campaign and, voila, youre 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 Moment127“Brand Promise” Exercise: (1) Who Are WE? (1 page, then 25 words.) (2) List three ways in which we are UNIQUE to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try em on a friendly Client. (7) Big Enchilada: Try em on a skeptical Client!128“WHO ARE WE?”129“WHO AM I ?”“Me and the Brand Promise, a Passionate Saga” We hope!130Edgartown MA: A&P Fun in the A&P Fun in the Sun StoreSun StoreDO THE EMPLOYEES BUY THIS ACT?131“EXACTLY HOW AM I/ ARE WE DIFFERENT?”132“ WHY DOES IT MATTER TO THE CLIENT?”133“EXACTLY HOW DO I CONVEY THAT DIFFERENCE TO THE CLIENT ”134Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency & freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we all get out of bed in the morning. REAL Branding cant be faked. REAL Branding is a systemic, 24/7, all departments, all hands affair. 135Tell the TRUTHP-l-e-a-s-e 136Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership137Brand LeadershipPassion Rules!138“Leadership is a performance. You have to be conscious of your behavior, because everybody else is.” Carly Fiorina139“You must be the change you wish to see in the world.”Gandhi 140“Leaders achieve their effectiveness chiefly through the stories they relate. In addition to communicating stories, leaders embody those stories.”Howard Gardner, Leading Minds: An Anatomy of Leadership141“Create a Cause, not a business. ”Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1: Charles Schwab)142Brand Leadership: ENTHUSIASM RULES!Ben Zander: “I am a dispenser of enthusiasm.” 143Message: 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. TPs final words: CYNICISM SUCKS.144“Lets make a dent in the universe.”Steve Jobs145