Transcript Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Muhlenberg College/04.01.2004 Slides at … tompeters.com.

Tom Peters’
Re-Imagine!
Business Excellence
in a Disruptive Age
Muhlenberg College/04.01.2004
Slides at …
tompeters.com
“Uncertainty is the only
thing to be sure of.” —Anthony Muh,
head of investment in Asia, Citigroup Asset Management
“If you don’t like change,
you’re going to like
irrelevance even less.” —General Eric
Shinseki, Chief of Staff,
U. S. Army
1. All Bets
Are Off.
Jobs
Technology
Globalization
War, Warfighting &
Security
Jobs
New Technology
Globalization
War, Warfighting &
Security
The Perfect (Jobs) Storm
Off-shoring
WC Automation
Reluctance to hire
“14 MILLION
service jobs are in
danger of being
shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
study
“Income Confers No
Immunity as Jobs
Migrate”
—Headline/USA Today/02.04
“There is no job
that is America’s
God-given right
anymore.”
—Carly Fiorina/ HP/
01.08.2004
“The proper role of a healthily
functioning economy is to destroy
jobs and to put labor to use
elsewhere. Despite this truth,
layoffs and firings will always
sting, as if the invisible hand of
free enterprise has slapped
workers in the face.” —Joseph Schumpeter
“WHAT ARE PEOPLE
GOING TO DO WITH
THEMSELVES?” —Headline/
Fortune/ 11.03 (“We should finally admit that we do not
and cannot know, and regard that fact with serenity
rather than anxiety.”)
Jobs
Technology
Globalization
War, Warfighting &
Security
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 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
“A California biotechnology
company has put the entire
sequence of the human genome
on a single chip, allowing
researchers to conduct single
experiments on the complex
relationships between the 30,000
genes that make up a human
being.” —Page 3, Financial Times/10.03.2003
E.g. …
Jeff Immelt: 75% of “admin, back
room, finance” “digitalized” in
years.
Source: BW (01.28.02)
Jobs
Technology
Globalization
War, Warfighting &
Security
“The world has arrived at a rare
strategic inflection point where
nearly half its population—living in
China, India and Russia—have been
integrated into the global market
economy, many of them highly
educated workers, who can do
just about any job in the world.
We’re talking about three billion
people.” —Craig Barrett/Intel/01.08.2004
1990-2003: Exports 8X
($380B); 6% global exports
2003 vs. 3.9% 2000; 16% of
Total Global Growth in 2002.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
1998-2003: 45,000,000 layoffs in
state sector; offset by $450B in
foreign investment; foreign
companies account for 50+%
of exports vs. 31% in Mexico,
15% in Korea.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
50% of output from private
firms, 37% from state-owned
firms; 80% of workforce
(incl. rural) now in private
employ.
Source: “China Takes Off”, David Hale & Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
Population growth = 1%;
two-thirds of housing
privately owned, 90% of
urban Chinese own a home
(vs. 61% in Japan)
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
200 cities with
>1,000,000
population.
Source: “China Takes Off”, David Hale & Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
World economic
output: U.S.A., 21%;
EU, 16%; China, 13%
(2X since1991)
Source: New York Times/12.14.2003
“With a Small Car,
India Takes Big
Step Onto Global
Stage”
—Headline, p. 1, WSJ, 02.05.2004
Level 5 (top)
ranking/Carnegie Mellon
Software Engineering
Institute: 35 of 70
companies in world are
from India
Source: Wired/02.04
“Forget India, Let’s
Go to Bulgaria”
—Headline,
BW/03.04, re SAP, BMW, Siemens et al. “near-shoring”
“CLONING COLLEGE:
South Korea’s
biomedical researchers,
unhampered by politics,
do world-class research
on the cheap”
—Headline,
Newsweek/03.01.04
Jobs
Technology
Globalization
War, Warfighting &
Security
“September 11 amounts to
World War III—the third
great totalitarian challenge
to open societies in the last
100 years.” —Thomas
Friedman/NYT/01.08.2004
“This is a dangerous world and
it is going to become more
dangerous.”
“We may not be interested in
chaos but chaos is interested
in us.”
Source: Robert Cooper, The Breaking of Nations:
Order and Chaos in the Twenty-first Century
“Before we can talk about the
security requirements for today
and tomorrow, we have to
forget the security rules
of yesterday.” —Robert Cooper, The
Breaking of Nations: Order and Chaos in the Twenty-first
Century
All Bets
Are Off!
“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 Case
“We are in a
brawl with no
rules.”
Paul Allaire
“Let’s compete—by training the
best workers, investing in R & D,
erecting the best infrastructure and
building an education system that
graduates students who rank with
the worlds best. Our goal is to be
competitive with the best so we
both win and create jobs.” —Craig Barrett
(Time/03.01.04)
The “Ownership Society” (GWB): “This
is a bundle of proposals that treat
workers as self-reliant pioneers who
rise through several employers and
careers. To thrive, these pioneers need
survival tools. They need to own their
own capital reserves, their retraining
programs, their own pensions and
their own health insurance.” —David
Brooks/NYT/12.20.03
It is the foremost task—
and responsibility—
of our generation to
re-imagine our
enterprises, private
and public. —from the
Foreword, Re-imagine
2. The
Destruction
Imperative.
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100
“survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak,
outperformed the market 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
“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
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
C.E.O.
to
C.D.O.
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
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
“Beware of the tyranny of
making Small Changes
to Small Things. Rather,
make Big Changes to Big
Things.” —Roger Enrico, former Chairman,
PepsiCo
3. IS/ IT/ Web:
“On the Bus” or
“Off the Bus.”
square feet
“Invisible Supplier Has
Penney’s Shirts All Buttoned
Up: From Hong Kong, It
Tracks Sales, Restocks
Shelves, Ships Right to the
Store.” —Headline, Wall Street Journal (09.11.03)
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from the lab to
X-ray to records to physician order entry. Patients don’t have to
wait for anything. The information from the physician’s office is
in registration and vice versa. The referring physician is
immediately sent an email telling him his patient has shown up.
… It’s wireless in-house. We have 800 notebook computers that
are wireless. Physicians can walk around with a computer that’s
pre-programmed. If the physician wants, we’ll go out and wire
their house so they can sit on the couch and connect to the
network. They can review a chart from 100 miles away.” —David
Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)
“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made
one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The
implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an
ineffective bombing campaign, and Washington was anguishing over whether
to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used
satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen
(much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures
to allow intelligence analysts and attack planners to work directly together.
Their favorite tool, incidentally, was instant messaging over a secure
network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/
OCT2002
“MIT Everywhere: EVERY
LECTURE, EVERY LECTURE,
EVERY QUIZ, ALL ONLINE, FOR
FREE. MEET THE GLOBAL GEEKS
GETTING AN MIT EDUCATION,
OPEN SOURCE-STYLE.”
—Headline/Wired/09.03
e-piphany
epicurious.com
“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
“The organizations we created have
become tyrants. They have taken
control, holding us fettered, creating
barriers that hinder rather than help
our businesses. The lines that we
drew on our neat organizational
diagrams have turned into walls
that no one can scale or penetrate
or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
IS/IT
strategy!
5% F500 have CIO on Board: “While some
of the world’s most admired companies—
Tesco, Wal*Mart—are transforming the
business landscape by including
technology experts on their boards, the
vast majority are missing out on ways to
boost productivity, competitiveness and
shareholder value.”
Source: Burson-Marsteller
4. The White
Collar
Revolution.
Steel: 75,000,000 tons in
’82 to 102,000,000 tons in
’02. 289,000 steelworkers
in ’82 to 74,000
steelworkers in ’02.
Source: Fortune/11.24.03
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
“Organizations will still be
critically important in the world,
but as ‘organizers,’ not
‘employers’!” — Charles Handy
“Don’t own nothin’
if you can help it.
If you can, rent
your shoes.”
F.G.
“P&G Hires Out
Employee Services to
IBM” —Burlington Free Press/09.10.03/
on IBM’s 10-year, $400M contract with P&G
(P&G farmed out IT to HP in May, Facilities to
Jones Lang LaSalle in June)
Ford: “Vehicle
brand
owner” (“design, engineer, and
market, but not actually make”)
Source: The Company, John Micklethwait & Adrian Wooldridge
TP to NAPM:
You are the …
Rock Stars
of the
B2B Age!
“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Proprietary Point of View (Methodology)
W.W.P.F. (100%)/Outside Clients (25%++)
When: Now!
BMW’s
Designworks/USA:
>50% from outside
work
G.M. = The Recruitment and
Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets
on Projects. [Period!]
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
eHR*/PCC**
*All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR
Department, John Sullivan, IHRIM
Model PSF …
(1) Translate ALL departmental
activities into discrete
W.W.P.F. “Products.”
(2) 100% go on the Web.
(3) Non-awesome are
outsourced (75%??).
(4) Remaining “Centers of
Excellence” are retained &
leveraged to the hilt!
“Typically in a mortgage company or
financial services company, ‘risk
management’ is an overhead, not a revenue
center. We’ve become more than that.
We pay for ourselves, and
we actually make money
for the company.”
—Frank Eichorn,
Director of Credit Risk Data Management Group, Wells Fargo
Home Mortgage (Source: sas.com)
What Do I “Do” First?
One Minute
Excellence!*
*Thomas Watson
Culture Change is not “Corporate.”
Culture Change is not a “Program.”
Culture Change does not take “Years.”
Culture Change does not start “Today.”
Culture Change starts Right
Culture Change
Now!
Lives in the Moment!
Culture Change is
Entirely in Your Hands!
5. The Heart of the Value
Added Revolution:
The “Solutions
Imperative.”
“While everything may
it is also
increasingly
the same.”
be better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“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 Nordström and Jonas Ridderstråle, Funky Business
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, Unique Now ... or Never
“Customers will try ‘low cost
providers’ … because
the
Majors have not
given them any clear
reason not to.”
Leading Insurance Industry Analyst
“We make over three new
product announcements a
day. Can you remember
them? Our
customers
can’t!”
Carly Fiorina
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Systems
Integrator of
choice. Global Services:
Gerstner’s IBM:
$35B. Pledge/’99: Business
Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“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)
And the Winners Are …
Televisions –12%
Cable TV service +5%
Toys -10%
Child care +5%
Photo equipment -7%
Photographer’s fees +3%
Sports Equipment -2%
Admission to sporting event +3%
New car -2%
Car repair +3%
Dishes & flatware -1%
Eating out +2%
Gardening supplies -0.1%
Gardening services +2%
Source: WSJ/05.16.03
6. A World of
Scintillating
“Experiences.”
“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
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“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
WHAT CAN BROWN DO FOR YOU?
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
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
Message:
“Experience” is the
“Last 80%”
P.S.: “Experience” applies to all work!
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
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
“Lexus sells its cars as
containers for our
sound systems. It’s
marvelous.”—Sidney Harman/
Harman International
It’s All About EXPERIENCES: “Trapper” to
“Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”;
$750-$1,000 for flood-control
piping … so that beavers
can stay.
Source: WSJ/05.21.2002
Duet … Whirlpool … “washing machine” to
“fabric care system” … white goods: “a sea of
undifferentiated boxes” … $400 to $1,300 …
“the Ferrari of washing machines” …
consumer: “They are our little mechanical
buddies. They have personality. When they are
running efficiently, our lives are running
efficiently. They are part of my family.” …
“machine as aesthetic showpiece” … “laundry
room” to “family studio” / “designer laundry
room” (complements Sub-Zero refrigerator and
home-theater center)
Source: New York Times Magazine/01.11.2004
Experience …
Cirque du Soleil
DO YOU MEASURE UP?*
*If not, why not?
“Most executives have no
idea how to add value to a
market in the metaphysical
world. But that is what the market
will cry out for in the future. There
is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
<TGW
vs.
>TGR
Dell + IBM +
Harley-Davidson*
= Magic!
*Frictionless throughout Supply-chain + EncompassingSolutions
+ Scintillating Experience
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/08.18.03
“Thaksinomics” (after Taksin
Shinawatra, PM)/ “Bangkok
Fashion City”/ “managed asset
reflation” (add to brand value of
Thai textiles by demonstrating flair
and design excellence)
Source: The Straits Times/03.04.2004
7. Trends Worth Trillion$$$ I:
Women
Roar.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)
All consumer purchases … 83%
Bank Account … 89%
Household investment decisions … 67%
Small business loans/biz starts … 70%
Health Care … 80%
????
Riding Lawnmowers
2/3rds working women/
50+% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
1970-1998
Men’s median income: +0.6%
Women’s median income: + 63%
Source: Martha Barletta, Marketing to Women
$5+T > Japan
10M/28M/$3.6T
> Germany
Business Purchasing Power
Purchasing mgrs. & agents: 51%
HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
Women-owned Bus.
U.S. employees > F500
employees worldwide
Source: Martha Barletta, Marketing to Women
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
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!)
Read This: Barbara & Allan Pease’s
Why Men Don’t
Listen & Women
Can’t Read Maps
“Resting” State: 30%, 90%: “A
woman knows her children’s
friends, hopes, dreams, romances,
secret fears, what they are
thinking, how they are feeling. Men
are vaguely aware of some short
people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that
would allow him to zero in on targets in the
distance … whereas a woman needed eyes
to allow a wide arc of vision so that she
could monitor any predators sneaking up
on the nest. This is why modern men can
find their way effortlessly to a distant pub,
but can never find things in fridges,
cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage
contributes significantly to what is
called ‘women’s intuition’ and is one
of the reasons why a woman can read
between the lines of what people say.
Men, however, shouldn’t despair.
They are excellent at imitating
animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
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
“Women don’t buy
They
join them.”
brands.
EVEolution
2.6
vs.
Lowe’s …
Gets it.
1989:
13%/“lumber shop” … 2002: >50%
“War has broken out over
your home-improvement
dollar, and Lowe’s has
superpower Home Depot on
the defensive. It’s not-so-
secret ploy: Lure
women.” —Forbes.com
“Volvo Teams Up to Build
What Women Want:
Concept Car Goes for
Great Storage, Easy
Maintenance” —headline/USA
Today/12.16.2003/140-person team;80%
women
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
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’re marketing to
women entrepreneurs because it is
a huge opportunity.” — Cherie Piebes
Psssst! Wanna
see my “porn”
collection?
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
16;
(94% = 272)
“Customer is King”:
4,440
“Customer is Queen”:
29
Source: Steve Farber/Google search/04.2002
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
8. Trends Worth Trillion$$$ II:
Boomer
Bonanza/
Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
44-65: “New
Consumer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Consumer
Majority is the only adult
market with realistic
prospects for significant
sales growth in dozens of
product lines for thousands
of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
“Baby-boomer
Women: The Sweetest
of Sweet Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
“Sixty Is the
New Thirty”
—Cover/AARP/11.03
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$610B healthcare spending/
74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
9. Re-inventing the
Individual: Welcome
to a Brand You
World
“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
“JUST GOT LAID
OFF? HIRE
YOURSELF!”—Cover
story, Forbes, 12 May 2003
“My ancestors were printers in
Amsterdam from 1510 or so until
1750, and
during that
entire time they didn’t
have to learn anything
new.”
Peter Drucker, Business 2.0 (08.22.00)
“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)
Edward Jones’ Training Machine*
146 hours/employee/year
New hires: 4X avg.
3.8% of payroll
* #1, “The 100 Best Companies To Work
For”/Fortune/01.2003
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
Invent. Reinvent. Repeat.
Source: HP banner ad
Personal “Brand Equity” Evaluation
– I am known for [2 to 3 things]; next year at this time I’ll
also be known for [1 more thing].
– 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 in the last 90 days include …
–My resume is discernibly different
from last year’s at this time …
T.T.D./Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
The Rule of Positioning
“If you can’t describe
your position in eight
words or less, you don’t
have a position.”
— Jay Levinson and Seth Godin, Get What You
Deserve!
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
THE I work for a
company called Me
STREET JOURNAL
Adventures in Capitalism
THE rise up and flee
your cubicle STREET
JOURNAL
Adventures in Capitalism
Bill Parcells’ World/
Brand You World!
BLAME NOBODY!
EXPECT NOTHING!
DO SOMETHING!
NY Post (9/99)
“For Marx, the path to social betterment was
through collective resistance of the proletariat to
the economic injustices of the capitalist system
that produced such misshapenness and
fragmentation. For Emerson, the key was to jolt
individuals into realizing the untapped power of
energy, knowledge, and creativity of which all
people, at least in principle, are capable. He too
hated all systems of human oppression; but his
central project, and the basis of his legacy, was
to unchain individual minds.” —Lawrence Buell, Emerson
10. Boss Job One:
The Talent
Obsession.
Brand =
Talent.
Age of Agriculture
Industrial Age
Age of Information Intensification
Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
Talent!
Tina Brown: “The
first thing
to do is to hire enough
talent that a critical mass
of excitement starts to
grow.”
Source: Business2.0/12.2002-01.2003
Model
25/8/53
Sports Franchise GM
“The leaders of Great
Groups love talent and know
where to find it. They revel in
the talent of others.”
Warren Bennis & Patricia Ward Biederman,
Organizing Genius
PARC’s Bob Taylor:
“Connoisseur
of Talent”
Les Wexner: From
sweaters to people!
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.
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
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia-Pacific
profitability from $25 million to $80 million
in 2 years.”
Ed Michaels, War for Talent
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
“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 mixand-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
CM Prof Richard Florida on
“Creative Capital”: “You cannot
get a technologically
innovative place unless it’s
open to weirdness,
eccentricity and difference.”
Source: New York Times/06.01.2002
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
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, BusinessWeek, 11.20.00
Women’s Strengths Match New Economy
Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style
[empowerment beats top-down decision making];
sustain fruitful collaborations; comfortable with
sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret: Women Managers
Degree Gap*
Wom:Men/Bachelor’s … 2000: 133;
2010: 142
Wom:Men/Master’s … 2000: 138;
2010: 151
* Whites, Blacks, Hispanics, Asians, Native Americans
Source: The New Gender Gap/BusWeek/05.26.2003
“Are men
obsolete?”
—Headline,
USN&WR/06.03.03
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
“Firms will not ‘manage the
careers’ of their employees. They
will provide opportunities to
enable the employee to develop
identity and adaptability and
thus be in charge of his or her
own career.”
Tim Hall et al., “The New Protean Career Contract”
Quests!
Organizing Genius / Warren Bennis and Patricia
Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or her
absolute best.”
“The best thing a leader can do for a
Great Group is to allow its members to
discover their greatness.”
Talent
Department
People Department
Center for Talent Excellence
Seriously Cool People Who Recruit
& Develop Seriously Cool People
Etc.
DD$21M
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
Talent’s “Big Two” Rules
GREAT Finance Dept. =
GREAT Football Team
DIFFERENCES Among Cello
Players = DIFFERENCES
Among Hotel GMs
11. Brand Talent+:
Addressing the
Education
Fiasco.
“In a global economy, the
government cannot give
anybody a guaranteed success
story, but you can give people
the tools to make the most of
their own lives.” —WJC, from Philip Bobbitt,
The Shield of Achilles: War, Peace, and the Course of History
“My education was a
prolonged and concerted
attack on my
individuality.”
—Neil Crofts, Authentic
J. D. Rockefeller’s General Education Board
(1906):
“In our dreams people
yield themselves with
perfect docility to our
molding hands. … The task is
simple. We will organize children and teach
them in a perfect way the things their fathers
and mothers are doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
“My wife and I went to a [kindergarten] parent-teacher
conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a
grade of Unsatisfactory in art. We were shocked. How
could any child—let alone our child—receive a poor
His teacher
informed us that he had refused to
color within the lines, which was a
state requirement for
demonstrating ‘grade-level motor
skills.’ ”
grade in art at such a young age?
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En masse the children leapt from
their seats, arms waving. Every child was an artist. SECOND
GRADE: About half the kids raised their hands, shoulder high, no
higher. The hands were still. THIRD GRADE: At best, 10 kids out
of 30 would raise a hand, tentatively, self-consciously. By the
time I reached SIXTH GRADE, no more than one or two kids
raised their hands, and then ever so slightly, betraying a fear of
being identified by the group as a ‘closet artist.’ The point is:
Every school I visited was participating
in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
Ye gads: “Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, he’s actually found
a negative correlation. ‘It seems that schoolrelated evaluations are poor predictors of
economic success,’ Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most
schools penalized risk takers. Most educational
systems reward those who play it safe. As a
result, those who do well in school find it hard to
take risks later on.”
Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
Audie Murphy was the most
decorated soldier in WW2.
He won every medal we had
to offer, plus 5 presented by
Belgium and France. There
was one common medal he
never won …
… the Good
Conduct medal.
12. Leading in Totally
Screwed Up Times:
The Passion
Imperative.
“Ninety percent of what
we call ‘management’
consists of making it
difficult for people to get
things done.” – P.D.
“I don’t
know.”
“A leader is a
dealer in
hope.”
Napoleon
(+TP’s writing room pics)
“I’m not comfortable
unless
I’m uncomfortable.”
—Jay
Chiat
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
The 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!)
“We have a
‘strategic’ plan.
It’s called doing
things.”
— Herb Kelleher
“If Microsoft is good at anything, it’s
avoiding the trap of worrying about
criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through
version after version, until they get
something good enough. Then they
leverage the power they’ve gained in
other markets to enforce their standard.”
Seth Godin, Zooming
Hackneyed but none the less
LEADERS SEE
CUPS AS “HALF
FULL.”
true:
“[Ronald
Reagan] radiated an
almost transcendent
happiness.”
Half-full Cups:
Lou Cannon, George (08.2000)
“To
Don’t ”
List
It’s T-H-R-E-E, Stupid!
“I used to have a rule for myself that at any
point in time I wanted to have in mind — as
it so happens, also in writing, on a little card
I carried around with me — the three big
things I was trying to get done. Three. Not
two. Not four. Not five. Not ten. Three.”
— Richard Haass, The Power to Persuade
DG to TP: “Sam
is not afraid
to fail.”
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“I never, ever thought of myself
I was
interested in creating
things I would be
proud of.” —Richard Branson
as a businessman.
“Vision is a love
affair with an
idea.”
—Boyd Clarke & Ron
Crossland, The Leader’s Voice
BZ: “I am a …
Dispenser of
Enthusiasm!”
“You can’t behave in a calm,
rational manner. You’ve got to
be out there on the lunatic
fringe.” — Jack Welch,
on GE’s quality program
“I’m looking for
insane
commitment.”
—Twyla
Tharp, The Creative Habit
“… a powerful and
madly exuberant
work” —LA Times on Frank Gehry’s
Walt Disney Concert Hall (10.03)
“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
“You must be
the change you
wish to see in the
world.”
Gandhi
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
Leaders don’t just make products
and make decisions.
Leaders make
meaning.
– John Seely Brown
“Sir Richard’s Rules:
“Follow your passions.
“Keep it simple.
“Get the best people to help you.
Re-create yourself.
“Play.”
Source: Fortune/10.03
T. J. Peters
1942 – 2--HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
LET HIM!
T. J. Peters
1942 – 2---
HE WAS A PLAYER!
“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.”
— Émile Zola
“In Tom’s world, it’s always
better to try a swan dive and
deliver a colossal belly flop
than to step timidly off the
board while holding your
nose.”—Fast Company /October2003
“the wildest
chimera of a
moonstruck
mind”
—The Federalist on
Jefferson’s Louisiana Purchase
“Life is not a journey to the
grave with the intention of
arriving safely in a pretty and
well-preserved body—but rather
a skid in broadside, thoroughly
used up, totally worn out, and
loudly proclaiming, ‘Wow, what
a ride!’ ” —anon.
Thank You