Transcript Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years.

Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here,
you will find at tompeters.com the last eight years of presentations, a
basketful of “Special Presentations,” and, above all, Tom’s constantly
updated Master Presentation—from which most of the slides in this
presentation are drawn. There are about 3,500 slides in the 7-part “Master
Presentation.” The first five “chapters” constitute the main argument:
Part I is context. Part II is devoted entirely to innovation—the sine qua
non, as perhaps never before, of survival. In earlier incarnations of the
“master,” “innovation” “stuff” was scattered throughout the presentation—
now it is front and center and a stand-alone. Part III is a variation on the
innovation theme—but it is organized to examine the imperative (for most
everyone in the developed-emerging world) of an ultra high value-added
strategy. A “value-added ladder” (the “ladder” configuration lifted with
gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a
specific logic for necessarily leaving commodity-like goods and services in
the dust. Part IV argues that in this age of “micro-marketing” there are
two macro-markets of astounding size that are dramatically underattended by all but a few; namely women and boomers-geezers. Part V
underpins the overall argument with the necessary bedrock—Talent, with
brief consideration of Education & Healthcare. Part VI examines
Leadership for turbulent times from several angles. Part VII is a
collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things
I’ve learned along the way.”
Enjoy! Download! “Steal”—that’s the whole point!
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
World Marketing and Innovation Forum
Lisbon/16 November 2007
*In Search of Excellence 1982-2007
1. Everything/6
MBWA
“You must
be
the change you
wish to see in the
world.”
Gandhi
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
“Being aware of
yourself and how you
affect everyone
around you is what
distinguishes a
superior leader.”
—Edie Seashore (Strategy + Business #45)
“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
“Dennis, you need a …
‘To-don’t ’
List !”
You = Your
calendar*
*Calendars
never lie
“The one thing you need
to know about sustained
individual success:
Discover what you don’t
like doing and
stop
doing it.”
—Marcus Buckingham, The One Thing You Need to Know
Conrad Hilton, at a gala celebrating his life,
was asked, “What was the most important lesson you’ve learned
in you long and distinguished career?”
His immediate answer:
“remember
to tuck the
shower curtain
inside the
bathtub”
“Execution is
strategy.”
—Fred Malek
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
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
Brand =
Talent.
“Character is more crucial now
than ever, because in times of
great uncertainty past
performance is no indicator of
future performance. Experience
falls away and all you’re left
with is character.” —David Rothkopf,
founder of a firm that helps chief executives manage
risks
‘do’
“Leaders
people.
Period.”
—Anon.
“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
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“Never, ever again
will I evaluate anyone
using a standardized
instrument devised by
a “professional” in
inhuman Resources.”
Promise #1:
“Leaders
‘SERVE’
people.
Period.”
—inspired by Robert Greenleaf
“No matter what the
situation, [the excellent
manager’s] first response is
always to think about the
individual concerned and
how things can be arranged
to help that individual
experience success.”
—Marcus Buckingham, The One Thing You Need to Know
“Either love
your players,
or get out of
coaching.”
—Bobby Dodd, legendary football coach.
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10.
Avoid moderation!
“Normal” =
“o for 800”
The “Hang Out Axiom”: At
its core, every (!!!)
relationship-partnership
decision (employee,
vendor, customer, etc)
is a strategic decision
about:
“Innovate,
‘Yes’ or ‘No’ ”
“[CEO A.G.] Lafley has shifted
P&G’s focus on inventing all its
own products to developing
others’ inventions
at least half the
time. One successful example
Mr. Clean Magic Eraser, based on
a product found in an Osaka
market.” —Fortune, 12.18.06
“Human
creativity is
the ultimate
economic
resource.”
—Richard Florida,
The Rise of the Creative Class
“Every child is
born an artist.
The trick is to
remain an
artist.” —Picasso
“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!
15 “Leading” Biz Schools
Design/Core: 0
Design/Elective: 1
Creativity/Core: 0
Creativity/Elective: 4
Innovation/Core: 0
Innovation/Elective: 6
Source: DMI/Summer 2002/Research by Thomas Lockwood
“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
(500
of 900
Research)
headline/FT/0327
Muhammad Yunus:
“All human beings
are entrepreneurs. When we
were in the caves we were all selfemployed . . . finding our food, feeding
ourselves. That’s where human history
began . . . As civilization came we
suppressed it. We became labor
because they stamped us, ‘You are
labor.’ We forgot that we are
entrepreneurs.”
Source: Muhammad Yunus/2006 Nobel Peace prize winner,
father of micro-lending /The News Hour—PBS/1122.2006
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
Single
greatest act
of pure
imagination
$20,000,000,000
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
—Nicholas Negroponte
3M’s Innovation
Crisis: How Six Sigma
Almost Smothered
Its Idea Culture
Source: Title/Cover Story, BW, 0611.07 (“What’s remarkable is
how fast a culture can be torn apart,” 3M lead scientist; “In
an innovation economy, [6 Sigma] is no longer a cure all”/BW)
“With ISO 9000 you can still have
terrible processes and products. You
can certify a manufacturer that makes
life jackets from concrete, as long as
those jackets are made according to
the documented procedures and the
company provides next of kin with
instructions on how to complain about
defects. That’s absurd.” —Richard Buetow,
former Director of Corporate Quality for Business
Systems, Motorola
“Excellence can be obtained if you:
... care more than others think
is wise;
... risk more than others think
is safe;
... dream more than others think
is practical;
... expect more than others think
is possible.”
Source: Anon. (Posted @ tompeters.com by
K.Sriram, November 27, 2006 1:17 AM)
“Strive for
Excellence.
Ignore
success.”
—Bill Young, race car
driver (courtesy Andrew Sullivan)
If not
“Excellence,”
what?
2. 41/1
“one idea.”
1966-2007.
What makes
God laugh?
People
making
plans!
“Recently I asked several corporate executives
what decisions they had made in the last year that
would not have been made were it not for their
All had difficulty
identifying one such decision.
corporate plans.
Since all of the plans are marked ‘secret’ or
‘confidential,’ I asked them how their competitors
might benefit from possession of their plans.
Each answered with
embarrassment that their
competitors would not
benefit.” —Russell Ackoff (from Henry Mintzberg,
The Rise and Fall of Strategic Planning)
“Plans are to
businesses what
diet books are to
the morbidly
obese.” —anon.
Try it. Try it. Try it
ry it. Try it. Screw
up. Try it. Try it. Try
t. Try it. Try it. Try
t. Try it. Screw it up
t. Try it. Try it. try
“This is so simple it sounds stupid, but it is amazing
how few oil people really understand that
you only find
oil if you drill
wells.
You may think you’re finding it
when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
“We made mistakes, of course. Most of them were
omissions we didn’t think of when we initially wrote the
software. We fixed them by doing it over and over, again
and again. We do the same today. While our competitors
are still sucking their thumbs trying to make the design
perfect, we’re already on prototype version
#5.
By
the time our rivals are
ready with wires and screws, we are on version
#10. It gets back to planning
versus acting: We act from day
one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
Culture of Prototyping
“Effective prototyping may
the most
valuable core
competence an
be
innovative organization can
hope to have.” —Michael Schrage
“We
performed
more
operations.”
Lynchpin
of my life!
Life Mantra: “Do” Your
Way Into “Thinking”!
I proceeded by trial and error and instinct, and
each experiment led to/suggested another
experiment (or 2 or 10) and to a greater
understanding of potential—the “plan,” though
there was none, made itself. And it was far, far
better (more ambitious, more interesting, more
satisfying) than I would have imagined. In fact,
the result to date bears little or no relationship
to what I was thinking about at the start—a
trivial self-designed chore may become the
engine of my next decade.
Screw.
things.
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
No try.
No deal.
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
3. “gurugate”: The
Gurus’ fixation with
“the wrong stuff”*
*Not “they,” but “us.”
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
“I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, ‘How do I build a small firm for
Buy
a very large one
and just wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
You don’t
get better by
being bigger.
You get
worse.”
Dick Kovacevich:
“Despite a decade of
banking mergers, there is
no evidence
that
big banks are any more
efficient or profitable than
their smaller rivals.” —
Financial Times, 0329.07, on possible BarclaysABN Amro merger
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
none
found that
of the longterm survivors managed to outperform
the market. Worse, the longer
companies had been in the database,
the worse they did.” —Financial Times
“Data drawn from the real world
attest to a fact that is beyond
Everything
in existence tends
to deteriorate.”
our control:
—Norberto Odebrecht, Education Through Work
Enemy
#1
I.C.D.
Inherent/Inevitable/
Immutable Centralist Drift
Note 1:
Note 2: Jim Burke’s 1-word vocabulary: “No.”
#4 Japan
#2T China
#2T USA
#4 Japan
#2T china
#2t USA
#1 Germany
Reason!!!
Mittelstand
Or …
Goldmann
Produktions
(11/50%/$5M/”dip and coat,” expensive pigments
vs “through coloring,” fades Bekro Chemie)
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Family Businesses
Two-thirds of total #s
of companies
One-half of biggest companies
>One-half GDP
>One-half employment
6% more profitable
7% better ROA
Higher income growth
Higher revenue growth
Source: John Davis, HBS
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Jim’s
Group
Jim’s Mowing Canada
Jim’s Mowing UK
Jim’s Antennas
Jim’s Bookkeeping
Jim’s Building Maintenance
Jim’s Carpet Cleaning
Jim’s Car Cleaning
Jim’s Computer Services
Jim’s Dog Wash
Jim’s Driving School
Jim’s Fencing
Jim’s Floors
Jim’s Painting
Jim’s Paving
Jim’s Pergolas [gazebos]
Jim’s Pool Care
Jim’s Pressure Cleaning
Jim’s Roofing
Jim’s Security Doors
Jim’s Trees
Jim’s Window Cleaning
Jim’s Windscreens
Note: Download, free, Jim Penman’s book:
What Will They Franchise Next? The Story of Jim’s Group
etc.
PRSX/Paragon
Railcar
Salvage*
*Salvaged railcars into bridges, etc.
Wegmans
#1/100
“Best Companies to
Work for”/2005
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
“Natural selection is death. ...
Without huge amounts of
death, organisms do not
change over time. ... Death
is the mother of structure. ...
It took four billion years of
death ... to invent the human
mind ...” — The Cobra Event
Q4/2006
+500,000 = ?
Source: Barron’s 0922.07
Q4/2006
+500,000 =
+7,700,000
-7,200,000
Source: Barron’s 0922.07
The last
word:
There is
no “last
word.”
Headline, Wall Street Journal,
“Wal*Mart Era Wanes
Amid Big Shifts In Retail: Rivals
Find Strategies To Defeat Low
Prices; World Has Changed”
3 October 2007:
“The Wal*Mart Era, the
retailer’s time of overwhelming
business and social influence in
America, is drawing to a close.”
Sentence #1:
Cover, Newsweek, 05 November 2007:
“Takedown? ONCE HAILED AS A
WORLDBEATER, THE INTERNET
COLOSSUS NOW HAS REAL
RIVALS ALL OVER THE
WORLD.”
[text followed by a massive rendition of the
GOOGLE
logo]
Built to Last
vs
Built to
Change/Rock
the World
TP#1*:
Netscape!
*Where would you rather have worked for those 5 years, Netscape
or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you
rather to be able to tell someone—e.g., grandchild—that you worked?)
C.E.O.
to
C.D.O.
Palo Alto/30
California/35
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Mission impossible?
$36B/’98
minus
$675M/‘07
Market capitalization
lost per day, 19982007:
$10,000,000/Day
*Lived in same town all adult life
*First generation that’s wealthy/
no parental support
*“Don’t look like millionaires, don’t
dress like millionaires, don’t eat like
millionaires, don’t act like millionaires”
*“Many of the types of businesses [they] are in could be
classified as ‘dull-normal.’ [They] are welding contractors,
auctioneers, scrap-metal dealers, lessors of portable toilets,
dry cleaners, re-builders of diesel engines, paving
contractors …”
Source: The Millionaire Next Door, Thomas Stanley & William Danko
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
The “Fabulous Five”:
*SMEs!
*Private companies!
*“Dull” industries!
*Productive churn:
Built to Rock the
World!
*Laudable CEOs!
4. I’m so angry I
could scream*
(*so I will!)
Dumb Bastards: “Hard”?????
“Mark-to-market” (What’s
“market”???? What market????)
CDOs/Consolidated-debt
Obligation (Value of
underlying asset??????) (Value of
$64B “super-senior” [“super-safe”]
CDOs at Citi???????)
Postscript: Bye, bye Stan/Merrill and Chuck/Citi.
You’re gonna have to learn to live on $100 million
or so [Stan/$160M severance], I guess.
Hard Is Soft
Soft Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
“If I could have chosen not to tackle the IBM culture head-on, I
probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands of people is
[Yet] I came to see in
my time at IBM that culture
isn’t just one aspect of the
very, very hard.
game —it is the
game.”
—Lou Gerstner,
Who Says Elephants Can’t Dance
Hard Is Soft
Soft Is Hard
“What I learned from my years
as a hostage negotiator is that
we do not have to feel
powerless—and that
bonding
is the antidote to
the hostage situation.” —George
Kohlrieser, Hostage at the Table
95%:
“Understanding
the mind’s eye of
another person”
“You can make more
friends in two months by
becoming interested in
other people than you can
in two years by trying to
get other people interested
in you.” —Dale Carnegie
“The terms ‘hard facts,’ and
‘the soft stuff’ used in business
imply that data are somehow
real and strong while emotions
are weak and less important.” —
George Kohlrieser, Hostage at the Table
Women’s Negotiating Strengths
*Ability to put themselves in their
counterparties’ shoes
*Comprehensive, attentive and detailed
communication style
*Empathy that facilitates trust-building
*Curious and attentive listening
*Less competitive attitude
*Strong sense of fairness and ability to persuade
*Proactive risk manager
*Collaborative decision-making
Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It
Like a Woman: Why the 21st-century negotiator will need the female touch”
Hard Is Soft
Soft Is Hard
R.O.I.R.
Return On
Investment In
Relationships
“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
C(I) > C(E)
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
Thank
you!!!
FLOWER
POWER
“The deepest
human need is
the need to be
appreciated.”
William James
Relationships
(of all varieties):
THERE
ONCE WAS A TIME WHEN A
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT RESULTED
IN A COMPLETE RUPTURE.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
“I’m
really
sorry.”
Hard Is Soft
Soft Is Hard
“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
He was
seriously interested in
who you were and what
you had to say.”
college president.
Sara Lawrence-Lightfoot, Respect
Hard Is Soft
Soft Is Hard
“So why don’t we do this ‘obvious stuff’?”
Considered “soft.” Immediate priorities
get in the way. The B-school idea of
business pervades. Comfort hanging out
in our own confines. Easier.
Uncomfortable with the “relationship
stuff.” “Problem solvers,” not “listeners”
[“the 18-second Doc]; impatient, not
patient. Not the “sales type.” Like #s better
than people. Damned hard work unless
you take to it instinctively. Etc.
Answer/s?
Formal “calendar discipline.” A new “to-do
list.” A “Life coach”/Formal mentor (weekly,
daily if you can afford it). Support group. If
male, woman pal. Training—incl. role play.
Adopt Stephen Covey or Marshall Goldsmith.
Report card. Constant, informal as well as
formal “360 feedback.” A great “gotcha pal”—
e.g., monitors meetings, goes on “sales” calls.
Sales training!!!!! Volunteer community
leadership work. Fundraising!
5. Homage to
“the e-word”!
EXCELLENCE.
Circa 1982.
Excellence1982: The Bedrock “Eight Basics”
1.
2.
3.
4.
5.
6.
7.
8.
A Bias for Action
Close to the Customer
Autonomy and Entrepreneurship
Productivity Through People
Hands On, Value-Driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous Loose-Tight
Properties”
“Breakthrough” 82*
People!
Customers!
Action!
Values!
*In Search of Excellence
ExIn*: 1982-2002/Forbes.com
$85,000
EI: $10,000 yields $140,050
DJIA: $10,000 yields
*Forbes/Excellence Index /Basket of 32 publicly traded stocks
EXCELLENCE.
ASPIRATION.
2006.
Why in the
World did you
go to Siberia?
An
emotional, vital, innovative,
joyful, creative,
entrepreneurial endeavor
that elicits maximum
Enterprise* ** (*at its best):
concerted human
potential in the
wholehearted service of
others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
2007.
SEPTEMBER.
SYDNEY.
DRUCKER
TRIBUTE.
“I have always
believed that the
purpose of the
corporation is to be a
blessing to the
employees.” *
—Boyd Clarke
*TP: An “organization” is, in fact and after all
is said and done, a/the “house” in which
most of us “live” most of the time.
Organizations exist to serve. Period.
Leaders live to serve. Period.
Passionate servant leaders, determined to create a
legacy of earthshaking transformation in their domain
create/must necessarily create organizations which
no less than Cathedrals in
which the full and awesome
power of the Imagination and
Spirit and native
Entrepreneurial flair of
diverse individuals is
unleashed … In passionate pursuit of jointly
are …
perceived soaring purpose and personal and community
and client service Excellence.
EXCELLENCE.
“the rules.”
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative)
Decency
(respect, humane)
The Manager’s Book
of Decencies: How
Small /gestures
Build Great
Companies.
—Steve Harrison, Adecco
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative-adventures)
Decency
(respect, grace,
integrity, humane)
service
(worthy of our clients’ & extended
family’s continuing custom)
excellence
(period)
Cause
Space
Decency
service
(worthy of commitment)
(room for/encouragement for initiative-adventures)
(respect, grace, integrity, humane)
(worthy of our clients’ & extended
family’s continuing custom)
excellence
servant leadership
(period)
Cause
Space
Decency
service
excellence
servant leadership
6. Don’t forget
the “it”!
“It suddenly
occurred to me …
“It suddenly occurred
to me that in the space
of two or three hours
never
he
talked
about cars.” —Les Wexner
Franchise Lost!
TP:
“How many of you
really
crave
new Chevy?”
NYC/IIR/061205
[600]
a
“Ford, GM and Chrysler
do not just make cars
expensively … they make
bad
cars expensively.”
—Investec analyst, International Herald, 0805.06
“Not long ago, I heard one
studio chief utter the
unthinkable: ‘What would
happen if I made a movie I
actually looked forward
to seeing?’ ”
—Peter Bart, Editor in Chief,
Variety; former Paramount exec, “Hollywood’s Model Doesn’t
Produce Art, or Much Profit” (NYT/0721.06)
“Pierson’s entire focus
was making airplanes.
Forgeard’s focus was
blurred by ambition . He
wanted to move up and
become co-chairman
of EADS.” —Newsweek, 1023.06
Did one of ’em ever turn to the
other and say: “Wow I wonder
what unimaginable new tools,
otherwise not possible, will
be quickly brought forth for
my 19-year-old daughter
Anne because of
this deal?”
“I never, ever thought of
myself as a businessman. I
was simply interested
in creating things
I would be proud of.”
—Richard Branson
“Design is treated
like a religion
at BMW.” —Fortune
All Equal Except …
“At Sony we assume that all products
of our competitors have basically the
same technology, price, performance
and features. Design is the
only thing that
differentiates one product
from another in the
marketplace.” —Norio Ohga
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
“Better By Design”: A National Strategy
NZ = Design
Excellence
O*
C
** ***
Design Officer
**Minister for Design
***Deputy Prime Minister for Design and Creativity
*Chief
Design “is” …
WHAT & WHY I
LOVE.
LOVE.
All Time
No.1
(TP)
Ziplocs
Design “is” …
WHY I GET MAD.
MAD.
THE
DESIGNER OF MY
KRUPPS/ CUISINART
COFFEE-MAKER.
Major Reward!
Wanted:
Design is …
never
neutral.
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!
“Business people don’t
need to ‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/
University of Toronto
F.Y.I.
Message:
Men
cannot
design products or
services for women.
“Design-minded”:
A Pervasive Idea
450/8
“One bank is currently
claiming to … ‘leverage its global
footprint to provide effective financial
solutions for its customers by providing
a gateway to diverse markets.’”
—Charles Handy
“I assume that it is just
saying that it is there to
‘help its customers
wherever they are’.”
—Charles Handy
“Seek honest, minimalist management.
Look for companies run by a team that
explains things clearly and briefly. …
You can tell a lot about the firm by
reading an annual report or two. If
management can’t explain the
business in plain English, move
on to another firm. If you see
phrases like ‘creating knowledge-based
value in emerging markets’ … someone
is trying to pull the wool over your eyes,
you lazy Fool. Run.” —Seth Jayson, “Stocks for the
Lazy Investor,” The Motley Fool
6A. Design’s first
cousin:
experience it!
<TGW
vs.
>TGR
TGR (“Things
gone right”) >
TGW (“Things
Gone Wrong”)
not
“This is
a ‘mature
category’.”
This is an
“undistinguished
category.”
“Experiences
are as distinct
from services as
services are from
goods.”
—Joe Pine & Jim Gilmore, The
Experience Economy: Work Is Theatre & Every Business a
Stage
Safe, On-time and ...
“We defined
personality as a
market niche. We
seek to amaze,
surprise,
entertain.”
— Herb Kelleher, SWA / LUV
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-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
<TGW
vs.
>TGR
Candy in
Singapore
(Operational Excellence+)
“Happy
Birthday!”
Disney’s
Parking Lot
Attendants
= Alpha and
Omega
Commerce Bank: From “Service” to “Experience”
7X. 730A800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%;
WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
C
*Chief e
O*
Xperience Officer
Hire a
theater director,
as a consultant
or FTE!
First Step (?!):
F.Y.I.
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
C
O*
*Chief Lovemark Officer
“The sun is setting on the Information Society—even
before we have fully adjusted to its demands as
individuals and as companies. We have lived as hunters
and as farmers, we have worked in factories and now we
live in an information-based society whose icon is the
We stand facing the
fifth kind of society: the
Dream Society. … Future products will
computer.
have to appeal to our hearts, not to our heads. Now is the
time to add emotional value to products and services.”
Rolf Jensen/The Dream Society:How the Coming Shift from
Information to Imagination Will Transform Your Business
VA “Teaching Moment”
“Andy pointed to
a molding,
about halfway
up the wall …”
The Boot … and
Timberland
The Tomato/
Farmer … and
Campbell’s
7. “top line,”
anyone?
“Analysts … preferred cost cutting, as long as
they could see two or three years of EPS growth. I preached revenue
and the analysts’ eyes would glaze over. Now revenue is ‘in’ because
They
said, ‘Oh my gosh, you
need revenues to grow
earnings over time.’
Well, Duh!”
so many got caught, and earnings went to hell.
—Dick Kovacevich, Wells Fargo
The Commerce Bank Model
“cost cutting
is a death
spiral.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
“Our whole
story is
growing
revenue.”
—Vernon Hill (Top-line driven; standard
is bottom-line driven by cost cutting)
The Commerce Bank Model
“over-invest in our
people, over-invest
in our facilities.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
C
*Chief
O*
Revenue
Officer
“Everyone
lives by
selling
something.”
.
– Robert Louis Stevenson
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
Note to self: Cut for Monday.
8. Sunset for men!
Not Just America …
“Boys Falling
Seven Years
Behind Girls
at GCSE Level”
—headline, Weekly Telegraph, UK, 10.25.06
Girls Again
Outshine Boys
In CBSE Class
12 Exams
Source: Headline, Dateline New Delhi (0526.2007; Khaleej Times)
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
Women’s Trifecta+
*Buy
*Wealth
*Lead
+ECLIPSE
OF MALES
(Old/Retire; Young/Poorly educated)
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
?????????
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%
Guiding/Clients
She …
Chooses.
Arranges.
“Manages” attitude.
Go-No go on
repeat.
“Women come out better
on almost every count as
investors … They are less likely to
hold a losing investment too long, and
less likely to wait too long to sell a
winner; they’re also less likely to put too
much money into a single investment or
to buy a reputedly hot stock without
doing sufficient research.”
Source: The Merrill report: “When It Comes to Investing,
Gender A Strong Influence on Behavior.”, Atlantic
“Goldman Sachs in Tokyo has
developed an index of 115
companies poised to benefit from
women’s increased purchasing
power; over the past decade the
value of shares in Goldman’s
basket has risen by 96%, against
the Tokyo stockmarket’s rise
of 13%.” —Economist, April 15
most significant
variable in every
“The
sales situation is the
gender
of the buyer, and
more importantly, how the
salesperson communicates
to the buyer’s gender.”
—Jeffery Tobias Halter, Selling to Men, Selling to Women
The Perfect Answer
Jill and Jack buy
slacks in black…
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
P-l-e-a-s-e Read …
Fara Warner:
The Power of
the Purse
Cases! Cases! Cases!
McDonald’s (“mom-centered” to “majority consumer”; not
via kids)
Home Depot (“Do it [everything!] Herself”)
P&G (more than “house cleaner”)
DeBeers (“right-hand rings”/$4B)
AXA Financial
Kodak (women = “emotional centers of the household”)
Nike (> jock endorsements; new def sports; majority consumer)
Avon
Bratz (young girls want “friends,” not a blond stereotype)
Source: Fara Warner/The Power of the Purse
“We simply had
stopped being
relevant to women.”
—Kay Napier, SVP Marketing (Fara Warner, The Power of the
Purse, “From Minority to Majority: McDonald’s Discovers the
Woman Inside the Mom”)
“Mostly Moms”
“Women were either ignored
in favor of focusing on men—
generally considered the
industry’s most frequent
users and therefore its most
important consumers—or they
were cast in the role of moms
who were simply conduits to
their children.” —Fara Warner, The Power of
the Purse, “From Minority to Majority: McDonald’s
Discovers the Woman Inside the Mom”
“McDonald’s shifted its strategy
toward women from one of
‘minority’ consumers who served as
a conduit to the important
children’s market to one in which
women are the company’s majority
consumers and the main driver
behind menu and promotion
innovation.” —Fara Warner,
The Power of the Purse, “From Minority to Majority:
McDonald’s Discovers the Woman Inside the Mom”
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.
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
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. —Judy B. Rosener,
America’s Competitive Secret: Women Managers
Women Leaders’ Time Has Come …
Project team (old): 23 people, all from our company (More
or less amenable to “orders”)
Project team (new): 43 people from 7 companies in 4
countries on 3 continents (Moved only by effective
persuasion and development of common commitment)
“Worker,” circa 1982: Rote work, incl. most white-collar
work (Amenable to “orders,” power exercised directly)
“Worker,” circa 2007: Project work, team work, mixedgroup work, creative work, co-creation with client—
microprocessors do the “rote stuff” (Commitment is
voluntary, leadership is by developing positive
relationships, inducing “creatives” to stretch, power
exercised indirectly)
!!!!!!!!!!!!!!!
14 168*
to
*Leadership Positions/D&T/1992-2002/WIAR
(Women’s Initiative Annual Report)
10 UNASSAILABLE REASONS WOMEN RULE
Women make [all] the financial decisions.
Women control [all] the wealth.
Women [substantially] outlive men.
Women start most of the new businesses.
Women’s work force participation rates have
soared worldwide.
Women are closing in on “same pay for same
job.”
Women are penetrating senior ranks rapidly
[even if the pace is slow for the corner
office per se].
Women’s leadership strengths are exceptionally well
aligned with new organizational effectiveness
imperatives.
Women are better salespersons than men.
Women buy [almost] everything—commercial
as well as consumer goods.
So what exactly is the point of men?
“One thing is certain: Women’s rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content
to provide efficient labor or to be consumers
with rising budgets and more autonomy to
spend. … This is just the beginning. The
phenomenon will only grow as girls prove to be
more successful than boys in the school
For a number of observers, we
have already entered the age of
‘womenomics,’ the economy as
thought out and practiced by a
woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006
system.
“ ‘Womenomics,’ the
economy as
thought out and
practiced by a
woman.”
—Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
“Are men
obsolete?”
—Headline, USN&WR
7a. Sunrise for
old folks!
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
Average # of cars purchased per
household, “lifetime”:
13
Average # of cars bought per household
after the “head of household” reaches
age 50:
7
Source: Marti Barletta, PrimeTime Women
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64:
+47%)
“One particularly puzzling category of youthobsession is the highly coveted target of men
18-34, and it’s always referred to as ‘highly
coveted category.’ Marketers have been
distracted by men age 18-34 because they are
getting harder to reach. So what? Who wants
to reach them? Beyond fast food and beer, they
don’t buy much of anything. … The theory is
that if you ‘get them while they’re young,
What
nonsense!”
they’re yours for life.’
—Marti Barletta, PrimeTime Women
“Fifty-four years of age has been
the highest cutoff point for any
marketing initiative I’ve ever been
involved in. Which is pretty weird
when you consider age 50 is right
about when people who have
worked all their lives start to have
some money to spend.” —Marti Barletta,
PrimeTime Women
We are the Aussies & Kiwis & Americans &
Canadians. We are the Western Europeans &
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the
most (yes) ambitious, the most experimental &
exploratory, the most different, the most
indulgent, the most difficult & demanding,
the most service & experience obsessed, the
most vigorous, (the least vigorous,) the most
health conscious, the most female, the most
profoundly important commercial market in
the history of the world—and we will be the
Center of your universe for the next twentyfive years. We have arrived!
“Marketers attempts at reaching
those over 50 have been miserably
No market’s
motivations and
needs are so poorly
understood.”
unsuccessful.
—Peter Francese, founding publisher, American Demographics
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
44-65:
“New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Customer
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
“‘Age Power’ will
st
rule the 21 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”
7a. Dick & Mike
Show!
Sir Richard’s Rules:
Follow your passions.
Keep it simple.
Get the best people to help you.
Re-create yourself.
Play.
Source: Fortune on Branson
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo