Transcript Document 7127525

Tom Peters Seminar2001
We Are in a
Brawl with No
Rules!
One Day/11.15.2001
“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
Uncertainty: We
don’t know
when things will get back
to normal.
We no longer
know what “normal”
means.
Ambiguity:
BMcC: (1) Hierarchy vs.
“Network organization.” (2)
NWO = “Doctrine as center of
gravity”/source of motivation;
distributed support & decisionmaking;largely self-organizing;
“outside the military sphere.”
“In an era when terrorists use
satellite phones and encrypted
email, US gatekeepers stand
armed against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
Boston Globe (09.30.2001)
From:
To:
Weapon v.
Weapon
Org structure v.
Org structure
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“Once devised in Riyadh, the tasking order took hours
to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper
communications gear that would have connected the
Navy with its Air Force counterparts. … To
compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to
pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy
machines at full tilt, and distribute the documents to
the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
<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
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
All Slides Available at …
tompeters.com
Note: Lavender text in this file is a link.
TOPICS. BRAND INSIDE. Forces at Work I:
The Destruction Imperative. Brand Org: Lean,
Linked, Internet-driven, Virtual. Brand Work:
The Professional Service Firm Model. The
Heart of the V.A. Revolution: PSF Unbound.
Brand You: Distinct … or Extinct. Redefining
the Work Itself: The WOW Project. Brand
Talent: The Great War for Talent. Brand
Talent+: The Education Fiasco. Summary: The
High Standard Deviation Enterprise & The 5
Transformations
TOPICS. BRAND OUTSIDE. Forces at Work II:
The Sameness Trap. Strategy 1A: Use Ecommerce to Re-invent Everything. Strategy
1B: Embracing an e-Led Age of Selfdetermination. Strategy 2A: Women Rule.
Strategy 2B: Welcome to “Old World.”
Strategy 3A: Design Matters. Strategy 3B: It’s
the Experience. Strategy 4: Brand Power.
TOPICS. BRAND LEADERSHIP. The
Leadership50: Leading in Totally Screwed-Up
Times
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
Forbes100 from 1917 to 1987: 39 members of the
Class of ’17 were alive in ’87; 18 are in ’87 F100; the
18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the
market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the
Class of ’57 were alive in ’97; 12 (2.4%) of 500
outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction:
Why Companies That Are Built to Last Underperform the
Market
Are all CEOs
bozos? Was Darwin a
Message*:
genius, or what? So,
Boss
Man, whadda you say
about “risk taking” now?
*And “all that” (2 of 100; 12 of 500) was in relatively placid times.
CEOs appointed after
1985 are 3X more likely
to be fired than CEOs
appointed before 1985
Warren Bennis, MIT Sloan Management Review
“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
“A pattern emphasized in the case
studies in this book is the degree to
which powerful competitors not only
resist innovative threats, but actually
resist all efforts to understand them,
preferring to further their positions in
older products. This results in a surge of
productivity and performance that may
take the old technology to unheard of
heights. But in most cases this is a sign
of impending death.”
Jim Utterback, Mastering the Dynamics of Innovation
“The 1990s was a decade of multiple
revolutions—political, economic, technological—
that changed so thoroughly the way we live that
the past no longer seems a good guide to the
future (in fact the past seems precisely
the wrong guide). So it is in the world of
military affairs. The RMA is our opportunity to
use the new information technology to change
the very nature of the military—in a way that
could reinvigorate American political, diplomatic
and economic leadership in the world for
decades to come.” –Bill Owens, Lifting the Fog of War
Forget>“Learn”
“The problem is never how
to get new, innovative
thoughts into your mind,
but how to get the old
ones out.”
Dee Hock
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Brand Inside
Brand Org:
Lean, Linked,
Internet-driven, Virtual
White
Collar
Revolution!
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
The Pincer 5
1 “Destructive” entrepreneurs/
Global Competition
.
2 “White Collar Robots”
.
3 THE INTERNET!
.
[E.g.: GM + Ford + DaimlerChrysler]
4. Global Outsourcing
[E.g.: India, Mexico]
5. Speed!!
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
Automation+
40
75% of what we do:
“expert” decision rules!
IBM’s Project
eLiza!
“Unless mankind redesigns
itself by changing our DNA
through altering our genetic
makeup, computergenerated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
The Pincer 5
1 “Destructive” entrepreneurs/
Global Competition
.
2 “White Collar Robots”
.
3 THE INTERNET!
.
[E.g.: GM + Ford + DaimlerChrysler]
4. Global Outsourcing
[E.g.: India, Mexico]
5. Speed!!
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
“Don’t own
nothin’ if you
can help it. If you
can, rent your
shoes.”
F.G.
Brand Inside
Brand Work: The
Professional
Service Firm
Model
So what will be the
Basic Building
Block of the
New Org?
Every job done
in W.C.W. is also
done “outside”
…for profit!
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
“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%++)
BMW’s
Designworks/USA:
>50% from
outside work
eHR*/PCC**
*All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR
Department, John Sullivan, IHRIM
(1) Translate departmental
affairs 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!
Brand Inside
The Heart of the Value
Creation Revolution:
PSF Unbound!
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
HP … Sun … GE … IBM
… UPS … UTC …
General Mills … Springs
… Anheuser-Busch …
Carpet One … Delphi …
Etc. … Etc.
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to
“Customer Success”
“We’re getting better at [Six
Sigma] every day. But we really
need to think about the customer’s
profitability. Are customers’
bottom lines really benefiting from
what we provide them?”
Bob Nardelli, GE Power Systems
GE’s Six Sigma+ Approach
Old view: Out of service 9 days. 4
days are transport, which is client
responsibility.
New view: ALL 9 DAYS ARE OUR
RESPONSIBILITY! Why? 9 days =
Client’s World.
Source: Steve Kerr, VP, GE
“The primary strategic mission
for [CEO Jeffrey] Immelt is to
hasten GE’s transformation
from a low-margin manufacturer
to a more lucrative services
company that sells solutions as
much as stuff.”
Newsweek/09.10.2001 (Welch raised share of
services revenue from 15% to 70%)
“In GE’s world there are
fewer but bigger
customers, so there’s a
vital need to maximize
the relationship.”
Newsweek/09.10.2001
“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)
New Springs = Turnkey
Collections.
Flexible sourcing.
Packaging.
Merchandising.
Promotion.
Systems & Site mgt.
“We are a ‘real estate
facilities consulting’
organization, not just an
‘interior design’ firm.”
Jean Bellas, founder, SPACE (from SMPS Marketer)
“ ‘Architecture’ is
becoming a commodity.
Winners will be ‘Turnkey
Facilities Management’
providers.”
SMPS Exec
Omnicom:
57%
(of $6B)
from marketing services
Everybody is
going after the
same space!
Problem:
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
“Don’t own nothin’
if you can help it. If
you can, rent your
shoes.”
F.G.
“The move toward outsourced
manufacturing represents an obvious
opportunity for contract manufacturers [such
as Flextronics: $93M to $15B, ’93-’00], but it’s also a
potential boon to product innovation. The
future of gadget-making is not about
making gadgets; it’s about imagining them.
Someone else makes the imaginary real.
‘All that money that used to go to fund
infrastructure is going into design and
innovation,’ says Flex CEO Michael Marks.”
Wired/11.2001
Better Red than Dead?/
Better Dead than Red?
“We will see more and
more outsourcing of
discovery processes.”
Craig Venter
Better Red than Dead?/
Better Dead than Red?
“If we completely
outsourced all of our genetic
analysis, we’d be held
hostage by outside people.”
Brian Spear, Director of
Pharmacogenomics, Abbott Labs
NC2001: Furniture
company
outsources all mfg. to
Asian firm. Asian firm
gets financing, buys
NC company.
Hmmm!!??
Brand Inside
Brand You:
Distinct …
or
Extinct
“If there is nothing very
special about your work, no
matter how hard you apply
yourself, you won’t get
noticed, and that
increasingly means you
won’t get paid much either.”
Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2001
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Sam’s
Secret #1!
Minimum New Work SurvivalSkillsKit2001
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
“You must realize that how you invest your
human capital matters as much as how you
invest your financial capital. Its rate of return
determines your future options. Take a job for
what it teaches you, not for what it pays.
Instead of a potential employer asking,
‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with
you for 5 years, how much will they
appreciate? How much will my portfolio of
career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
Invent. Reinvent. Repeat.
Source: HP banner ad
Brand Inside
Redefining the Work
The WOW
Project
Itself:
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Language
matters! Wow!
BHAG! “Takes
your breath
away!”
“Intimidate their
[users] imaginations”
… “Where’s the
revolution?” –J Allard,
on the Xbox
“Let’s make a
dent in the
universe.”
Steve Jobs
Brand Inside
WOW Projects for
the “Powerless”:
Getting Started … a
Personal Perspective
The following slide begins the
“Boss-Free Implementation of
Stuff That Matters” Section. The
slides in this section are heavily
annotated.
Use Normal or Notes Page View to
access the notes.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
Model F4
Find a Fellow
Freak Faraway
Heart of the Matter
F2F!/K2K!/
1@T/R.F!A.*
*Freak to Freak/Kook to Kook/
One at a Time/ Ready.Fire!Aim.
THE NUGGET
Do Something.
Do Anything.
Get Going.
Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Hell-I-Wish-It-WereOver Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our
Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War
for Talent via … a thoroughgoing review
of how safety and environmental
issues contribute to making this a
Great Place to Work?
Reframers’ Rules:
Rule 1: Never accept an
assignment as given!
(Please.)
Rule 2: You’re never so powerful
as when you are “powerless”!
Rule 3: Every “small”
project contains the entire
enterprise DNA!
THE TOOL
Prototyping Mania!
Think about It!?
Innovation = Reaction to
the Prototype
Michael Schrage
Boss-free “Selling” of a WOW! Idea
Get a Zany [WOW!] Idea/
Shop it with a coupla good pals.
Surface [using your network] a list of [operational]
folks who might be interested in playing.
Call, visit and choose a coupla prospects.
Engage the prospects [they must “own” “it”].
Concoct a rough plan and a prototype schedule.
Move forward [Ready. Fire! Aim.].
Keep on recruitin’.
Get the Test Customer to recruit some buddies for
Round #2 tests [Meanwhile Customer #1 expands
program]
Get going with Round #2 prototypes
Start conscious “buzz building” [Let “the word” of
successful tests trickle out]
Have the “line dudes” put on a demo for, say, a coupla
“cool” regional bosses
Etc.
Etc.
Have the growing Network of Converts initiate a Major
Program Proposal
Etc.
Etc.
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2001
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
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
Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of
command”
“Support the boss”
“Make budget”
*Fortune, article on
“Most Admired Global Corporations”
Sales2001
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.
3. Know the customer. (Including the customer’s
consultants.) (And especially the “corporate culture.”)
4. Love internal politics at home and abroad.
5. Religiously respect competitors. (No badmouthing, no
matter how provoked.)
6. Wire the customer’s org. (Relationships at all levels &
functions.)
7. Wire the home team’s org. and vendors’ orgs.
(INVEST Big Time time in relationships at all levels & functions.)
(Take junior people in all functions to client meetings.)
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.)
9. Sell only by solving problems-creating profitable
opportunities. (“Our product solves these problems, creates
these unimagined INCREDIBLE opportunities, and will make you
a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT
SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF
5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE
TRADE PRESS?)
10. Will involve anybody—including mortal enemies—if
it enhances the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.
11. Know the Brand Story cold; live the Brand Story. (If
not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible
for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s
organization & build up their Rolodex.
15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort
that’s sometimes better than a lousy win.)
17. Think those who regularly say “It’s all a price issue”
suffer from rampant immaturity & shrunken imagination.
18. Will not give away the store to get a foot in the door.
19. Are wary & respectful of upstarts—the real enemy.
20. Seek several “cool customers”—who’ll drag you into
Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even
though it is way overused. (“Partnership” includes folks at
all levels throughout the supply chain.)
22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for “little things.”) (50% of those notes are
sent to those in our company!) Remember birthdays. Use
the word “we.”
23. When you look across the table at the customer,
think religiously to yourself: “HOW CAN I MAKE THIS
DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?”
24. Great salespeople can affirmatively respond to the
query in an HP banner ad: HAVE YOU CHANGED
CIVILIZATION TODAY?
25. Keep your bloody PowerPoint slides simple!
Brand Inside
Starting a Wow Projects
Epidemic: Demo
mania!
New Hall of Fame!
“Ordering”
Systemic Change
is a Stupid Waste
of Time!
Premise:
L.B.I.W.D.
Inducing Weird Demos)
(Leading By
The “Flypaper/Epidemic
Strategy”: Trolling for would-be
Revolutionary(ies). Age & rank &
size of org do not matter/passion
rules (Gap’s 27-yr-old; Rajat; OSHA Maine;
Anthem NH). (Hmmmm. Maybe size & rank do
matter??) (“I won’t help you get promoted. I will help
you start a revolution/epidemic.”) Help
the
infected one(s) become “carriers;”
study epidemiology. MBSA.
MB
A!*
*Managing By Storying Around/David Armstrong
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Stories of identity – narratives
that help individuals think about
and feel who they are, where
they come from, and where they
are headed – constitute the
single most powerful weapon
in the leader’s arsenal.”
Howard Gardner, Leading Minds: An
Anatomy of Leadership
“Early in my career in the law I learned
he who has
the best story
wins.”
that …
JQ Adams/A Hopkins to T Joadson/M Freeman
Leaders don’t just make products
and make decisions.
Leaders make
meaning. – John Seeley
Brown
Leaders aiming to change their world
… troll
for & identify palpable
heroes, who executed
palpable projects—then they
point to these people and say to the
masses, “See, here it is, done by one
of your own.” (And then they “deep-dip” a few of
those heroes to demo their seriousness.)
Boss Advice I: The “Poster Kids”/
“End Run”/“Skunks” Strategy
Chat up a cross-section of the Org.
Develop a tentative list of Pioneers/“Skunks.”
Hang with those Skunks, discover their
“stuff I’ve long wanted to do”/Encourage
them to “Do it!”
Begin to showcase their developing results
[with your public stamp of approval].
Dip deep[ish] and early - promote a Super
Skunk into the [New] Establishment.
Incorporate the Skunks’ work into your Vision
Chatter/Welcome ALL aboard!
Boss Advice II: Starting the “Hmmmmm?” Buzz
“Event Marketing”: Idea Faire/Internal
“Tradeshow”/Bragfest. Or: Seminar Series, with
“strange” outsiders/insiders (not the usual suspects);
intense Web-based follow-up and community creation
(Neighborhoods of Common Interest).
“Play Fund,” around a topic of importance. Small-ish
grants. Easy application process. Short-ish
timeframes. (Gerstner @ American Express re AI.)
“Scholarships” (not the usual suspects). Sabbatical
funds (contest?). Placement on customer or supplier
project teams (not the usual suspects).
Each VP a V.C.: Portfolio
of high-risk investments;
from all across the
company; analog is
Wal*Mart exec
merchandising.
Freaks need
mentors/
guardians!
T.A.:
FindDevelop-Mentor
Goal of the Year No. 1*:
ONE Extraordinary
Person.
*CEO, large financial advisory firm, April 2001
Boss Advice III: The “Flypaper Strategy”
Don’t try to “change the culture”!
Do create flypaper which attracts
Mavericks & Pirates!
Let the new culture (which is already
lurking around you) find you!
Publicize, at the appropriate moment, the
New Hall of Fame; help the New Culture
Adherents create & nurture Community!
Brand Inside
Brand Talent: The
Great War for Talent
“When land was the scarce
resource, nations battled
over it. The
same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
The Talent Ten
1. Obsession
P.O.T.* = All
Consuming
*Pursuit of Talent
Sports
Franchise GM
Model 24/7:
2. Greatness
Only The Best!
From “1, 2 or you’re out” [JW]
to …
“Best Talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“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 (05.17.00)
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
4. Pay
Fork Over!
“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)
What gets measured
gets done. What gets
paid for gets done
more. What gets paid
a lot for gets done
a lot more.
5. Youth
Grovel Before
the Young!
“Why focus on these late teens and twentysomethings? 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 [12/2000]
6. Diversity
Mess Rules!
“Diversity defines the health and
wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The
impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the
mix-and-match – these people are inheriting the
earth. Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
7. Women
Born to Lead!
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
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
“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
“Investors are looking more and more
for a relationship with their financial
advisers. They
want someone
they can trust, someone who
listens. In my experience, in general,
women may be better at these
relationship-building skills than are
men.”
Hardwick Simmons, CEO, Prudential Securities
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (May2000)
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
Encouraging signs: CEO, HP. CEO,
eBay. CEO, Avon. CEO, Mirant.
CEO, Xerox. President,
Pharmaceutical Group, Pfizer.
President, Chevron Products. CoCEO, Kraft. President, PepsiCo.
CEO, Ogilvy & Mather. COO, Enron
Americas. COO, Colgate-Palmolive.
President, Southwest Airlines.
8. Weird
The Cracked Ones
Let in the Light!
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
enough
weird people in
“Are there
the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
9. Opportunity
Make It an
Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
48 Players =
48 Projects =
48 different success
measures
MantraM3
Talent = Brand
What’s your company’s …
Employee Value Proposition, per Ed
Michaels et al., The War for Talent
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
Source: Ed Michaels et al., The War for Talent
Brand Inside
Brand Talent+: The
Education Fiasco
Losing the
War to
Bismarck
“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
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
An Unnatural
Way to
“Learn”
Schools’ “Kafka-like rituals”: “enforce sensory
deprivation on classes of children held in
featureless rooms … sort children into rigid
categories by the use of fantastic measures such as
age-grading, or standardized test scores … train
children to drop whatever they are occupied with
and to move as a body from room to room at the
sound of a bell, buzzer, horn, or klaxon … keep
children under constant surveillance, depriving
them of private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children
numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist
that every moment of time be filled with lowlevel abstractions … forbid children their own
discoveries, pretending to possess some vital
secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
Doing Stuff
that Matters!
“During the first years of
life, youngsters all over
the world master a
breathtaking array of
competences with little
formal tutelage.”
Howard Gardner, The Unschooled Mind
The Learner’s Manifesto
The brain is always learning.
Learning does not require coercion.
Learning must be meaningful.
Learning is incidental.
Learning is collaborative.
The consequences of worthwhile learning
are obvious.
Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
Tom’s Edu3M
Manifesto*
*Manifesto for Education in the 3rd Millennium
Education3M
Learning is a normal state.
Children are learnavores.
Prodigious feats of learning are common as dirt.
[Watch a H.S. QB studying game film.]
We learn at different rates.
We learn in different ways.
Boys and girls learn [very] differently.
In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.
Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes,
of which testing is but one—and abnormal, by “real
world” standards.
Education3M
We learn most/fastest/most completely when we
are passionate about what we are learning and it
matters to us. [Salience rules!]
Think EBI/LBI: Education by Interest/
Learning by Internship.
Classrooms are abnormal places.
We need changes of pace. [Japanese recesses after each
class.]
International test scores are not correlated with
hours-per-year in class.
Big classes are slightly problematic. Big schools
suck. Period.
Education3M
“All this”—the right stuff—fits the NWW/New World
of Work hand-in-glove. [NWW = Age of Creativity.]
U.S. schools circa 2001 are a vestige of the
Prussian-Fordist model, more interested in shaping
behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.
Learning is a matter of Intensity of Engagement, not
elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get
to know kids as individuals.
Scientific discovery processes and the teaching of
science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3M
Our toughest “learning achievement”—
mastering our native language—does not
require schools, or even competent parents. [It
does require a desperate need-to-know.]
Great teachers are great learners, not impartersof-knowledge.
Great teachers ask great questions—that launch
kids on lifelong quests.
The world is not about “right” & “wrong”
answers; it is about the pursuit of increasingly
sophisticated questions—just ask a ski
instructor or neurosurgeon.
Education3M
Most schools spend most of their time setting
up contexts in which kids learn not to like
particular subjects. [Evidence shows that such antilearning sticks!]
Vigorous exploration is normal … until you are
incarcerated in a school.
“Bite size” education-learning is neither
education nor learning.
Learning takes place rapidly on the cheerleading
squad, the football team, the school newspaper,
the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3M
The “school reform” “movement” is a giant step …
backwards … embracing the Prussian-Fordist
paradigm with renewed vigor—at exactly the
wrong time.
There are large numbers of superb schools, superb
principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily
supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily
attract “cool dudes & dudettes.”
Schools of “education” should by and large have
their charters revoked.
Education3M
Stability is dead; “education” must
therefore “educate” for an unknowable,
ambiguous, changing future; thence,
learning to learn & change is far more
important than mastery of a static
body of “facts.”
“Education” must “develop in youth the
capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.]
[Hint: It doesn’t.] [Hint: Understatement.]
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: “Futuredefining customers may
account for only 2% to 3%
of your total, but they
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
COMPETITORS: “The
best swordsman in
the world doesn’t need to fear the
second best swordsman in the world;
no, the person for him to be afraid of is some
ignorant antagonist who has never had a sword
in his hand before; he doesn’t do the thing he
ought to do, and so the expert isn’t prepared
for him; he does the thing he ought not to do
and often it catches the expert out and ends
him on the spot.”
Mark Twain
Employees: “Are there
enough weird
people in the lab these
days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: There
is an ominous
downside to strategic supplier
relationships. An SSR supplier is not
likely to function as any more than a mirror
to your organization. Fringe suppliers that
offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by
Focusing on Fringe Competitors, Lost Customers, and Rogue
Employees
The Top Creators of Shareholder Value
Accept depressed earnings
for several quarters to
support hot product
Expense rather than capitalize new
venture costs
Bonuses without caps
Source: Fortune (09.17.201)
Message: TAKE SOMEONE
NEW & WEIRD TO
LUNCH TODAY OR
TOMORROW. [Inundate yourself
with weird.]
Brand Inside
NewGov2001
WE NEED …
IDEAS!
“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
Uncertainty: We
don’t know
when things will get back
to normal.
We no longer
know what “normal”
means.
Ambiguity:
BMcC: (1) Hierarchy vs.
“Network organization.” (2)
NWO = “Doctrine as center of
gravity”/source of motivation;
distributed support & decisionmaking;largely self-organizing;
“outside the military sphere.”
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“In an era when terrorists use satellite
US
gatekeepers stand armed
against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
phones and encrypted email,
Boston Globe (09.30.2001)
From:
To:
Weapon v.
Weapon
Org structure v.
Org structure
Ideas > Leadership
NO: “Good gov’t”
YES: EFFECTIVE Gov’t
(in altered/ambiguous
times)
A Plea for
“virtual
[RESPONSIVE]
government”
WALLS
MUST
FALL!
“Our military is very good at doing things as they are
supposed to be done, but it is not always good at
changing the way things ought to be done. Highly
professional militaries can be very good at
maintaining the institution’s traditions, mores and
cultures in the face of rapid and important change. …
Equating professionalism with automatically
defending the status quo can be disastrous.
This is the mindset that drives service loyalties
toward narrow parochialism, and congeals
organizations into brittle shells. We end up
ignoring opportunities that could actually offer higher
military effectiveness.” –Bill Owens,
Lifting the Fog of War
The W.O.G. (Work-of-
Insta/
Targeted WPTs
Government):
(WOW
Project
Teams
)
(B.H.A.G.)
(with clout)
Experiments rule!
Failures
rule!
Talent
matters!
New Heroes/
Hall of Fame
IS/IT to
the Max!
Streamlined
procurement (esp.
IS/IT)
P.S.: The
CONSTITUTION
matters! (Life, liberty & the pursuit of
happiness—and the Bill of Rights)
REPRESENTATIVE GOV’T
matters. (Filter the worst of mass
sentiments—Hobbes rules)
Bill Owens …
Lifting the Fog
of War
Case:
“The 1990s was a decade of multiple
revolutions—political, economic, technological—
that changed so thoroughly the way we live that
the past no longer seems a good guide to the
future (in fact the past seems precisely the
wrong guide). So it is in the world of military
affairs. The RMA is our opportunity to use the
new information technology to change the very
nature of the military—in a way that could
reinvigorate American political, diplomatic and
economic leadership in the world for decades to
come.” –Bill Owens, Lifting the Fog of War
“Our military is very good at doing things as they are
supposed to be done, but it is not always good at
changing the way things ought to be done. Highly
professional militaries can be very good at
maintaining the institution’s traditions, mores and
cultures in the face of rapid and important change. …
Equating professionalism with automatically
defending the status quo can be disastrous.
This is the mindset that drives service loyalties
toward narrow parochialism, and congeals
organizations into brittle shells. We end up
ignoring opportunities that could actually offer higher
military effectiveness.” –Bill Owens,
Lifting the Fog of War
“How dare you. If you
don’t support us, our
opponents will take
advantage and use this to
cut the force.” –CNO staffer
[Flag officer] to Bill Owens,
Fleet Commander
th
6
“Mike [Boorda’s] self-avowed priority was to
preserve and protect the size, budget and
structure of the U.S. Navy—his Navy—
irrespective of any other consideration—
because he deeply believed that the Navy was
the core of America’s military capability. My
view over the years had shifted toward the
conviction that we in the Navy need to
implement major changes in order to
become more joint—to work better and
more closely with the other services.”
–Bill Owens, Lifting the Fog of War
“Many flaws remained—flaws not from poor
performance, but from an ingrained command
hierarchy and an outmoded concept of war that
had taken root during World War II and then
during the cold war. Desert Storm was a joint
military operation in name rather than in fact. … The
battlefield was divided among service components. …
The fiefdoms existed not only because of tradition,
service rivalry and the egos of the commanders; they
were also there because of technological limitations.
We did not have the communications capability to do it
differently.” –Bill Owens, Lifting the Fog of War
“Once devised in Riyadh, the tasking order took hours
to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper
communications gear that would have connected the
Navy with its Air Force counterparts. … To
compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to
pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy
machines at full tilt, and distribute the documents to
the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful
computer technology and other
modern information-based
systems we could make a
revitalized, leaner military force
that is designed to outsee,
outmaneuver and outfight any
foe.” --Bill Owens, Lifting the Fog of War
RMA: (1) Battlespace
awareness. (2) C4I.
(Command, control, communications, computers &
(3) Precision
force use.
intelligence.)
“[The RMA] means creating a
synergy in new weapons, sensors
and communications that is made
possible by the successful
melding of the technological
applications with an informationage military organization.” –Bill Owens,
Lifting the Fog of War
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Sameness Trap
Quality Not Enough!
“While everything may
be better, it
is also
increasingly the
same.”
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“We make over three new
product announcements a
day. Can you remember
them?
Our customers can’t!”
Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“Companies have
defined so much ‘best
practice’ that they
are now more or less
identical.”
Jesper Kunde, A Unique Moment
10X/10X
Brand Outside
Strategy 1A:
Use E-Commerce to
Re-invent Everything!
Dell’s OptiPlex Facility
Big Job: 6
to 8 hours.
(80,000 per day)
Parts Inventory:
square feet.
Cisco!
90% of $20B (=$50M/day)
Annual savings in service
and support from customer
self-management: $550M
(P.S.: C.Sat e >> C.Sat h)
Secret Cisco: Community!
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
Webcor. Construction. Web site
for each project. Instant info on
status to employees, subs,
architects. Mgt costs cut by
2/3rds. Huge time shrinkage.
Source: Business Week (09.00)
Welcome 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
Psych 101:
Strongest Force on Earth?
My need to be in
perceived control
of my universe!
WebWorld = Everything
Web as a way to run your business’ innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth,
bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
Message: eCommerce
is not a
technology play! It is a
relationship, partnership,
organizational and
communications play, made
possible by new
technologies.
Message: eCommerce
is not a
technology play! It is a
relationship, partnership,
organizational and
communications play, made
possible by new
technologies.
Message: There
is no such
thing as an effective B2B or
Internet-supply chain
strategy in a low-trust,
bottleneckedcommunication, six-layer
organization.
“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
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
“There’s no use trying,” said Alice.
“One can’t believe impossible things.”
“I daresay you haven’t had much
practice,” said the Queen. “When I was
your age, I always did it for half an
hour a day. Why, sometimes I’ve
believed as many as six impossible
things before breakfast.”
Lewis Carroll
I’net …
allows you to
dream dreams
you could never
have dreamed
before!
…
Case:
CRM
UBIQUITY! “It’s the cars, not
the tires, that squeal”:
NYT/Circuits/10.25.01): E-ZPass
(6M in NE), tests with McD’s,
gas stations and parking lots
next. OnStar (GM/1.5M). Plus:
“black boxes”, GPS (the case of
the $450 ticket), CA smog
offenders.
“CRM has, almost
universally, failed
to live up to
expectations.”
--Butler Group (UK)
FT: “The aim [of
CRM] is to make customers
feel as they did in the preelectronic age when service
was more personal.”
No! No! No!
Rebuttal: (1) Service sucked in the
“pre-electronic” age. (2) NewGen
believes in the screen! (So do I.)
One Person’s Opinion
TP to reporter:
“Service is
MUCH better! Would you go
back to bank tellers and phone
operators? Value that I place on
a “smile”: 3 on a scale of 10. Value
I place on fast & accurate “digital”
response: 11 on a scale of 10!!
-5% defections =
+25% to +85% profit. Lose
15% to 35% p.a. 69% defect
as a result of lousy sales or
service experience. (Q:But is
this the point???? A: Yes.
No.)
M. Rogers:
CGE&Y (Paul Cole): “Pleasant
“Systemic
Opportunity.” “Better job
of what we do today” vs. “Rethink overall
enterprise strategy.”
Transaction” vs.
“Customer Service” is DEAD.
“One-to-One” is DEAD.
Welcome to: ????
[??? = We live together in seamlessresponsive harmony with all Members of
the Value Chain. We Create together. We
Fulfill together. We Learn together. We
Adjust together. All old categories –
which imply separation and linearity and
hierarchy and do-it-to-themism –
must die.]
I’net …
allows you to
dream dreams
you could never
have dreamed
before!
…
Message CRM: Madness = 600 CRM
vendors. ???: “Do it all” or “do
something.” Past: over-invest in lowvalue customers. Idea: better
experience, not off-load work to
customer. Relationship = f(dialogue
& knowledge & duration). Key: new
attitudes, DESTRUCTION of
functional barriers to info & action.
Brand Outside
Strategy 1B:
Embracing an e-Led
Age of
Self-Determination
“Parents, doctors, stockbrokers,
even military leaders are starting to
lose the authority they once had.
There are all these roles premised on
access to privileged information. …
What we are witnessing is a
collapse of that advantage,
prestige and authority.”
Michael Lewis, next
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
Impact #1:
Healthcare
HealthCare2001
Consumerism X
Demographics X
IS/Internet X
Info Consolidators X
Genetics & Devices
= YIKES!
1. Consumerism (Patientcentric Healthcare)
“A seismic shift is underway in
healthcare. The Internet is
delivering vast knowledge and new
choices to consumers—raising their
expectations and, in many cases,
handing them the controls.
[Healthcare] consumers are driving
radical, fundamental change.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
Today’s Healthcare “Consumer”:
“skeptical and
demanding”
Source: Ian Morrison, Healthcare in the New Millennium
Consumer Imperatives
Choice
Control (Self-care, Self-management)
Shared Medical Decision-making
Customer Service
Information
Branding
Source: Institute for the Future
“Self-medication is the wave
of the future, whether the
[pharmaceutical] industry
likes it or not.”
Wall Street Journal (5-23)
DTC > Professionals
Claritin
Pravachol
Zyban
Evista
Propecia
Prilosec
Primera
Source: JAMA
“Consumerism”: HMO backlash
(e.g., plans with more choice). Alternative
Medicine, Wellness & Prevention.
Info availability (disease, health, docs,
support groups, outcomes). Self-care
(chronic disease). High expectations
(genetics, etc.) Boomers (see below). …
“He shook me up. He put his hand
on my shoulder, and simply said,
‘Old friend, you have got to
take charge of your own
medical care.’ ”
Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal, following
Jordan’s cancer diagnosis)
“Savior for the Sick”
vs.
“Partner for Good
Health”
Source: NPR/VPR 08.15.00
“The ‘curative model’ narrowly
focuses on the goal of cure. …
From many quarters comes
evidence that the view of health
should be expanded to
encompass mental, social and
spiritual well-being.”
Institute for the Future
“What’s needed are comprehensive
strategies that leverage the latest
technology and provide the services that
eHealth consumers are demanding,
including convenience and customized
services such as online physician
interaction or online management of
health benefits and customized disease
management programs.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
Make time for your
most important
asset. Your health.
Ad for Mayo Clinic Executive Health
Program/Jacksonville, Orlando Airport
Message: Patients aren’t.
Consumers [will]
rule.
2. Demographics: The
BOOMERS Reach 55!
Boomer World
“From jogging to plastic
surgery, from vegetarian diets
to Viagra, they are fighting to
preserve their youth and
defy the effects of gravity.”
M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in
charge!” (4) “We’ll take no
guff from anyone.” (5) “We
know the emperor has no
clothes.”
IS/Web
3. The
REVOLUTION
“We’re in the Internet
age, and the average
patient can’t email
their doctor.”
Donald Berwick, Harvard Med School
Henry Lowe, U. of Pitt. School of
“Broadband,
Internet-based,
‘multimedia’
electronic medical
records”
Medicine:
“Without being disrespectful, I
consider the U.S. healthcare
delivery system the largest cottage
industry in the world. There are
virtually no performance
measurements and no
standards. Trying to measure
performance … is the next
revolution in healthcare.”
Richard Huber, former CEO, Aetna
“As unsettling as the prevalence of
inappropriate care is the enormous amount of
what can only be called ignorant care. A
surprising 85% of everyday medical
treatments have never been scientifically
validated. … For instance, when family
practitioners in Washington were queried about
treating a simple urinary tract infection, 82
physicians came up with an extraordinary 137
strategies.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“In health care,
geography is
destiny.”
Dartmouth Medical School 1996 report, from Demanding Medical
Excellence: Doctors and Accountability in the Information Age,
Michael Millenson
“Practice variation is not caused by ‘bad’ or
‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.”
Michael Millenson, Demanding Medical Excellence
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
“Quality of care is
the problem, not
managed care.”
Institute of Medicine (from Michael
Millenson, Demanding Medical Excellence)
RAND(1998): 50%,
appropriate
preventive care. 60%,
recommended treatment, per
medical studies, for chronic
conditions. 20%, chronic
care treatment that is wrong.
30% acute care treatment
that is wrong.
“In a disturbing 1991 study, 110
nurses of varying experience levels
took a written test of their ability to
calculate medication doses. Eight
out of 10 made calculation
mistakes at least 10% of the time,
while four out of 10 made mistakes
30 % of the time.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“Tufts Health to
issue doctor
‘report cards’ ”
–Boston Globe 10.25.2001
“Patient by patient, problem by
problem—drug reactions, hospital
caused infections—Salt Lake City’s
LDS Hospital has attacked treatmentcaused injuries and deaths. One of the
secrets of LDS’s success is a custombuilt clinical computer system that
may serve as a national model for how
to save patient lives.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
4. Information
Consolidators: The
Network Maestros
“America has twice
as many hospitals
and physicians as
it needs.”
Med Inc., Sandy Lutz, Woodrin Grossman
& John Bigalke
“The future of hospitals is
murky. A combination of
technological advances,
managed care, and changes in
Medicare reimbursement policy
means that the underlying
demand for inpatient services
will continue to fall.”
Institute for the Future
“Virtual health care webs force
providers to focus on their
areas of excellence and to
invest in areas where they can
generate a sustainable
competitive advantage.”
Healthcare.com: Rx for Reform, David
Friend, Watson Wyatt Worldwide
WebMD
& assigns)
(or heirs
Message:
Somebody is
gonna get
this
right!
5. Genetics &
Devices
“Recognizing that a
single misspelled gene
means the difference
between being poisoned
and being cured was the
first victory for the new science
of pharmacogenetics.”
Newsweek (06.25.01)
“Pharmacogenomics could
fundamentally change the nature
of drug discovery and marketing,
rendering obsolete the
pharmaceutical industry’s practice of
spending vast amounts of time and
money to craft a single medicine with
mass-market appeal.”
The Industry Standard (05.28.01)
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work
well for about half the patients for whom they are
prescribed, and experts believe genetic
differences are part of the reason. The
technology for genetic testing is now in use. But
the technique threatens to be so disruptive to the
business of big drug companies – it could limit
the market for some of their blockbuster
products – that many of them are resisting its
widespread use.”
The Wall Street Journal (06.18.2001)
Pharmacogenomics: End of Blockbusters
by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re
moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for
the industry. The implications for existing
business models are devastating.” Allen Roses,
SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences,
PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble
and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
“Will biotechs be any better at [the new varieties
of] drug discovery than Big Pharma? In the
aggregate … they will be. There is nothing the
small companies are doing that the large
cannot. [But] research programs at big
companies can meander for years. ‘It’s much
more Darwinian in biotech,’ says [Triangle
Pharmaceuticals founder and former head of R
& D at Burroughs Wellcome] David Barry.
‘Investors tend to be much more demanding in
their expectations than any internal review
organizations in large companies.’ ”
Fortune/07.23.01
“There is no question in my
mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon
the FDA’s approval of robotic partialbypass surgery
“Imagine the day that your
surgeon performs your heart
bypass sitting at a computer
thousands of miles from the
operating table. That day may
come sooner than you think.”
Newsweek (06.25.01)
Message pharacogenomics:
is
(1) There
a drug revolution
coming. Pretty damn fast. (2) My
bet: Most
Big Pharma will
get run over!
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status:
$1.3T. 70M uninsured. 90K killed and 2M
injured p.a. in hospitals. 85% treatments
unproven. Cure depends on locale in
which treated. 50% prescriptions do not
work. 2X docs. 2X hospitals. IS primitive.
Accountability & measurement nil. And
everybody’s mad and feels powerless:
docs, patients, nurses, insurers,
employers, hospital administrators
and staff.
Message I: Embrace
R&R
[radical and rapid] Change …
or Become History’s
Footnote
Message II: (1) An unparalleled
imagination
time for
and
bold action. (2) A time of
unprecedented
opportunities. (3) A time
of unprecedented risk.
Brand Outside
Strategy 2A:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
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
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42
M
Yeow!
1970 … 1%
2002 …
50%
OPPORTUNITY
NO.
1!*
[* No shit!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
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
“It is obvious to a woman when
another woman is upset, while a man
generally has to physically witness
tears or a temper tantrum or be
slapped in the face before he even has
a clue that anything is going on. Like
most female mammals, women are
equipped with far more finely tuned
sensory skills than men.”
Barbara & Allan Pease, 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
What 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 today’s
skills?”
EVEolution
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3rd more money than my
husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say
this is also true of most of my women
friends. Someone should wake up, smell
the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
STATEMENT OF PHILOSOPHY: I am a
businessperson. An analyst. A pragmatist. The
enormous social good of increased women’s
power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders
about my fact-based conviction that women’s
increasing power – leadership skills
and purchasing power – is the strongest and
most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo
Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
“If we are single, they say we
couldn’t catch a man. If we are
married, they say we are
neglecting him. If we are divorced,
they say we couldn’t keep him.
If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female political candidacy
Stupid!
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)
The Furniture Industry …
doesn’t understand BRANDING
doesn’t understand FASHION
doesn’t understand WOMEN
doesn’t understand SPEED & RESPONSIVENESS &
VALUE-ADDED SERVICES
doesn’t understand EXCITING RETAIL
PRESENTATION &
“EXPERIENCE” MARKETING.
And is run by old, conservative white guys … who
don’t even understand what they don’t understand.
Prescription …
SHE is the Consumer. (PERIOD.)
SHE is the Brand. (PERIOD.)
75% women designers* (*Men CANNOT
design for women. PERIOD.)
75% women reps.
“Cool” retail spaces in high-rent districts
(à la Ethan Allen).
Match furniture with accessories … i.e.,
create an “experience.”
FOCUS ON “RELATIONSHIPS-FOR-LIFE”,
not “transactions.”
Brand Outside
Strategy 2B:
Welcome to
“Old World”!
“ ‘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
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%)
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
Member Growth: 1987 – 1997
18 – 34: 26%
35 – 49: 63%
50+: 118%
Source: IHRSA
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury
$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
Stupid!
Brand Outside
Strategy 2C:
Welcome to
“Green World”!
50% to 36%:
Protect Environment >
Economic Growth.
And #3: GREEN?????:
58% to 34%: Protect Plants &
Animals > Preserve Private
Property Rights.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered:
M, 35%; F, 47%
Source: www.pulse.org & USA Today
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
Brand Outside
Strategy 3A:
Design Matters!
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … Amazon.com …
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
Design “is” … WHY I
GET MAD.
MAD.
Wanted: THE
DESIGNER OF MY
RADIO SHACK
PHONE. Major
Reward!
Design is never
neutral.
DESIGN is the
principal difference
between love and hate!
Hypothesis:
THE BASE CASE: I am a design fanatic. Personally,
though not “artistic,” I’m 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
doesn’t. Furthermore, it’s “one of those things” …
that damn few companies put – consistently – on the
front burner.
Message: Men cannot
design for women’s needs.
Period.
Philippe Starck
“Today the problem is not how
to produce more to sell more.
The fundamental question is
that of the product’s right to
exist. And it is the designer’s
right and duty to question the
legitimacy of the product.”
Philippe Starck
“My main task when I was
artistic director at Thompson for
four years: to make the company
virtuous. Not because there was
a desire to do evil, but because
they had simply forgotten their
purpose in life—to be of
service.”
Philippe Starck
“I invented the slogan ‘Thompson: From
Technology to Love.’ That completely
repositioned the problem. Because now
we were saying that technology wasn’t
an end in itself, but just a means—and
that the real goal was what had
always been there, the original priority,
humanity, whose ultimate criterion is love.
That connects back to the idea of the
friendly object, the good object.”
Philippe Starck
“[At Thompson] I outlawed the word ‘consumer’
in all company meetings, and insisted it be
replaced by the words ‘my friend,’ ‘my wife, ‘my
daughter,’ ‘my mother,’ or ‘myself.’ It doesn’t
sound the same at all, if you say: ‘It doesn’t
matter, it’s shit, but the consumers will make do
with it,’ or if you start over again and say, ‘It’s
shit, but it doesn’t matter, my daughter will make
do with it.’ All of a sudden, you can’t get away
with it anymore. There is an enormous task to be
done with this kind of symbolic repositioning.”
Philippe Starck
“Today, 80 per cent of objects are
unnecessarily macho. Yet it is
plain: The intelligence of a truly
modern society must be
feminine. … Apart from a machine
pistol, I can’t think of many objects
which actually need to be
extravagantly masculine.”
Philippe Starck
Brand Outside
Strategy 3B:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre
& Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based
Leadership
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
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.” (2) Focus groups
Bob Lutz: (1)
can be misleading.
(“What did you like about that movie
you just saw? Was there enough violence? Was the car chase long
(3) Design must
be Priority No. 1.
enough?”)
Source: NYT 10.19.01
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“Most companies tend to equate branding with the
company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are
wrong. The task is much bigger. It is about fulfilling our
potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT
DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER
THE WORLD IS ACTUALLY UNIQUE? The brand
has to give of itself, the company has to give of
itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not –
you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
“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
Companies will
thrive on the basis of their stories
and myths. Companies will need to understand
to how we work with others.
that their products are less important than their
stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“Brand Promise” Exercise: (1) Who
Are WE? (poem/novella/song, then 25 words.)
(2) List three ways in which we are
UNIQUE … to our Clients. (3) Who
are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/”them”
differences. (5) Try “results” on
your teammates. (6) Try ’em on a
friendly Client. (7) Big Enchilada:
Try ’em on a skeptical Client!
1st Law Mktg Physics: OVERT BENEFIT
(Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE
(Stand & Deliver!)
3RD Law: DRAMATIC
DIFFERENCE
(Execs Don’t Get It: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions
“How likely are you to purchase
this new product or service?” (95%
to 100% weighting by execs)
“How unique is this new product
or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall,
Jump Start Your Business Brain
Message: “Branding” is B.S. longterm if the product is not
supercalifragilisticexpealidocious
(e.g., see sections on Design &
Experience above)
The Heart of
Branding …
“WHO ARE
WE?”
WHAT’S
OUR
STORY?
“EXACTLY
HOW ARE WE
DRAMATICALLY
DIFFERENT?”
“ WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DIFFERENCE TO THE
CLIENT ”
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
The Leadership50
Leading in
Totally Screwed
Up Times
The Leadership50
1. Leaders Cede
Control.
“I don’t
know.”
1A
Not
to Screw
Things Up
. Leaders Try …
“Ninety percent of what we
call ‘management’ consists
of actions that make it
difficult for people to get
things done.” – P.D. “My goal
is not to ‘motivate them.’ It’s to not
de-motivate ’em.” – N.D. f’ball coach
1B. Leadership Is a
… Mutual
Discovery
Process.
I am inalterably opposed to
“organization change,”
“empowerment,” “motivation.” The
goal: to awaken the latent talent
already within, by providing
opportunities worthy of the
individual’s investment of her or
his most precious resources …
time and emotional commitment.
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a luxuriant
portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express
their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people
(5) go to-create places they (and their mentors-teachersleaders) had never dreamed existed—and then the
leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells
100 times to commemorate the bravery of their
“followers’ ” explorations!
2. Great Leaders on Snorting
Steeds Are Important – but
Great Managers/Talent
Developers (Type I
Leadership) are the Bedrock
of Organizations that Perform Over
the Long Haul.
Whoops: Jack
didn’t have a vision!
25/8/53
2A. “Just One”: Great
Leading = Great
Mentoring.
T.A.:
FindDevelop-Mentor
Goal of the Year No. 1*:
ONE Extraordinary
Person.
*CEO, large financial advisory firm, April 2001
2B.
Great Leaders are …
Great V.C.s.
“Basically [Omnicom’s John] Wren makes
aggressive bets on entrepreneurs and
gives them tremendous autonomy, on the
assumption that the risk-taking will pay off
in new ideas, connections, businesses,
and, yes, revenues and profits. …
‘Omnicom operates like a
venture-capital firm,’ says Sir Martin
Sorrell [of WPP].”
Fortune (09.17.2001)
3. But Then Again, There
Are Times When This
“Cult of Personality”
(Type II Leadership) Stuff
Actually Works!
“A leader is a
dealer in
hope.”
Napoleon
4. Find the
“Businesspeople”!
(Type III Leadership)
I.P.M.
(Inspired Profit
Mechanic)
4A. All Organizations
Need the Golden
Leadership
Triangle.
The Golden Leadership
Triangle: (1) CreatorVisionary … (2) Talent
Fanatic-Mentor-V.C. … (3)
Inspired Profit Mechanic.
Project Team Golden Triangle
(1) Champion-Maniac.
(2) Implementer-Pol. (3)
Schedule & Budgets
Fanatic.
5. Leadership Mantra
#1: IT
ALL
DEPENDS!
Renaissance Men
are … a snare, a
myth, a delusion!
6. The Leader Is
Rarely/Never the
Best Performer.
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.
7. Leaders
LOVE the
MESS!
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
7A. Leadership
Is Improv!
Duct Tape Rules!
“Andrew Higgins, who built landing craft
in WWII, refused to hire graduates of
engineering schools. He believed that they only
teach you what you can’t do in engineering
school. He started off with 20 employees, and by
the middle of the war had 30,000 working for
him. He turned out 20,000 landing craft. D.D.
Eisenhower told me, ‘Andrew Higgins won the
war for us. He did it without engineers.’ ”
Stephen Ambrose/Fast Company
7B. Leaders
Groove on
AMBIGUITY!
“Most of our
predictions are based
on very linear thinking.
That’s why they will
most likely be wrong.”
Vinod Khosla, in “GIGATRENDS,” Wired 04.01
8. Leaders
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!)
A Bias
for Action]
[ ISOE #1:
8A. Leaders
Re
-do.
“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
“Sony Electronics has a wellearned reputation for persistence.
The company’s first entry into a
new field often isn’t very good. But,
as it has shown in laptops, Sony
will keep trying until it gets
it right.”
Business Week (5/01)
8B. Leaders Are
PLAYFUL.
“You can’t be a serious innovator
unless and until you are ready,
willing and able to seriously play.
‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage,
Serious Play
Never trust
a “boss” with
no toys in
his/her office!
Axiom:
9. BUT … Leaders
Know When to
Wait.
Tex Schramm:
The
“too hard”
box!
Axioms: (1)
Pick your
battles carefully. (2)
Sometimes inaction
promotes sorting out &
preserves options.
10. Leaders
DELIVER!
10A. Leaders
KNOW They Can
Make a Difference!
“Leaders don’t
‘want to’ win.
Leaders ‘need
to’ win.”
#49
10B. Leaders Are
Optimists.
“[Ronald
Reagan] radiated an
almost transcendent
happiness.”
Half-full Cups:
Lou Cannon, George (08.2000)
11. BUT …
Leaders Are
Realists/Leaders
Win Through
LOGISTICS!
The “Gus
Imperative”!
12. Leaders
FOCUS!
“To
Don’t ”
List
Leaders “dump
the
ones who brung
’em” —Nokia, HP, 3M,
PerkinElmer, Corning, Enron, etc.
Cortez!
13. Leaders
Trust in
TRUST!
Credibility
13A. Leaders Infuse the
Dreaded-All Important
“Evaluation Process”
with CREDIBILITY!
25 = 100
Talent-minded leaders: (1) treat the
evaluation process strategically;
(2) invest enormous amounts of
personal time in it (to give it
credibility & amass data); (3)
depend on dialogue & “plain
English,” not obscure,
standardized “instruments.”
14. Leaders Understand
the Ultimate Power
of
RELATIONSHIPS.
“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, America’s Competitive Secret
14B. Leaders
Wire the Joint!
Winners wire.
Losers are
slaves to rank.
“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
14C. Leaders Are
Natural
EMPOWERMENT
FREAKS!
15. Leaders Know …
Women Roar/
Women Rule.
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
Women’s Strengths: Link [rather than rank]
workers; favor interactive-collaborative
leadership style [empowerment > top-down
decision making]; sustain fruitful collaborations;
comfortable with sharing information; see
redistribution of power as victory, not surrender;
favor multi-dimensional feedback; value
interpersonal & technical skills, group &
individual 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
“Boys are trained in
a way that will make
them irrelevant.”
Phil Slater
15A. Oh Yeah … and Women
Buy All the Stuff
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
16. Leaders LOVE
RAINBOWS – for
Pragmatic Reasons.
“Diversity defines the health and
wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The
impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the
mix-and-match – these people are inheriting the
earth. Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
16A. Leaders Pursue
Poets!
Gardner’s MI7: Logical-
mathematical, Linguistic,
Spatial, Musical,
Bodily-kinesthetic,
Interpersonal,
Intrapersonal.
“Expose yourself to the
best things humans have
done, and then try to
bring those things into
what you’re doing.”
Steve Jobs
17. Leaders
FORGET!/
Leaders
DESTROY!
“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
Forget>“Learn”
“The problem is never how
to get new, innovative
thoughts into your mind,
but how to get the old
ones out.”
Dee Hock
The [New] Ge Way
DYB.com
“The Word(s)” on Vitality: Gary Hamel
“Sell By” [jettison old crap]
Spin Out [support entrepreneurs]
Spin In [buy young firms]
18. BUT … Leaders
Have to Deliver, So They
Worry About “Throwing
the Baby Out with the
Bathwater.”
“Damned If You
Do, Damned If You
Don’t, Just Plain
Damned”
Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy
Adaptivity,” Liberation Management (1992)
19. Leaders …
HONOR THE
USURPERS.
Saviors-in-Waiting
Disgruntled Customers
Upstart Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost
Customers, and Rogue Employees
20. Leaders
HANG OUT
WITH
FREAKS!
Message: TAKE
NEW &
WEIRD TO LUNCH
SOMEONE
TODAY OR TOMORROW.
[Inundate yourself with weird.]
21. Leaders Make
[Lotsa] Mistakes
– and MAKE NO
BONES ABOUT IT!
Sam’s
Secret #1!
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
22. Leaders Make BIG
MISTAKES!
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
“Learn not to
be careful.”
Photographer Diane Arbus,
to her students
22A. Leaders Honor
Mistakes & Create
“Blame-free
‘Cultures.’ ”
Winning By Acknowledging Failures
Wernher Von Braun, the Redstone
missile engineer who “confessed” &
the bottle of champagne. Award to the
sailor on the Carl Vinson—for
reporting the lost tool. Amy Edmonson
& the successful nursing units with the
highest reported adverse drug events.
Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected
Accountability: YES!
Never-ending witch
hunts:
NO!
23. Leaders Set
DESIGN
SPECS.
1@T: (1) Neutron
JackWorld/
Jack. (Banish bureaucracy.) (2) “1, 2
or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
23A. Leaders Send
V-E-R-Y Clear
Signals About
Design Specs!
Ridin’ with Roger: “What
have
you done to
DRAMATICALLY
IMPROVE quality in the
last 90 days?”
24. Leaders Know
When to
CHALLENGE (BURN)
Design Specs!
“The ‘chump-tochamp-to-chump cycle’
used to be three
generations. Now it’s
about five years.”
Bill McGowan
25. Leaders Know that
THERE’S MORE TO LIFE
THAN “LINE EXTENSIONS.”
Leaders Love to CREATE NEW
MARKETS.
No one ever made it
into the Business Hall
of Fame on a record of
“line extensions.”
“Acquisitions are about
buying market share. Our
challenge is to
create markets.
There is a big difference.”
Peter Job, CEO, Reuters
The Top Creators of Shareholder Value
Accept depressed earnings
for several quarters to
support hot product
Expense rather than capitalize new
venture costs
Bonuses without caps
Source: Fortune (09.17.201)
26. Leaders Pursue
DRAMATIC
DIFFERENCE!
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or
2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand &
Deliver!)
3RD Law: DRAMATIC
DIFFERENCE
(Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0%
to 5%)
Source: Jump Start Your Business Brain, Doug Hall
26A. Leaders Make
Their Mark / Leaders
Do Stuff That
Matters
“Today the problem is not how
to produce more to sell more.
The fundamental question is
that of the product’s right to
exist. And it is the designer’s
right and duty to question the
legitimacy of the product.”
Philippe Starck
“My main task when I was
artistic director at Thompson for
four years: to make the company
virtuous. Not because there was
a desire to do evil, but because
they had simply forgotten their
purpose in life—to be of
service.”
Philippe Starck
27. Leaders Push Their
Organizations W-a-y Up the
Value-added/
Intellectual Capital
Chain
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
28. Leaders
LOVE the
New Technology!
I’net …
allows you to
dream dreams
you could never
have dreamed
before!
…
square feet
28A. Needed? Type IV
Leadership:
Technology
Dreamer-True
Believer
The Golden Leadership
Quadrangle: (1) CreatorVisionary … (2) Talent
Fanatic-Mentor-V.C. … (3)
Inspired Profit Mechanic. (4)
Technology Dreamer-True
Believer
29. When It Comes to
TALENT …
Leaders Always Swing
for the Fences!
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
30. Leaders Don’t
Create “Followers”:
THEY CREATE
LEADERS!
Brand You, Big Time!
I AM AN
ARMY OF
ONE
31. Leaders “Win
Followers Over”
WHAT AN IDIOT: “Instead
of employees being in the driver’s
seat, now we’re in the driver’s
seat.”
“Coaching
is winning
players over.”
PJ:
32. Leaders
“Manage” Their
EVP/Internal
Brand Promise.
MantraM3
Talent = Brand
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
Source: Ed Michaels et al., The War for Talent
33. Leaders Know “It’s
My Fault.”
You recruited ’em.
You hired ’em.
You trained ’em.
You evaluated ’em.
You “motivated” ’em.
33A. Leaders Don’t
Scapegoat /
Allow
Scapegoating.
34. Leaders have
MENTORS.
Upon
having the Leadership
Mantle placed upon thine
head, thou shalt never
hear the unvarnished
truth again!*
The Gospel According to TP:
(*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.)
35. Leaders Out
Their
PASSION!
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“Let’s make a
dent in the
universe.”
Steve Jobs
36. Leaders Know:
ENTHUSIASM
BEGETS
ENTHUSIASM!
BZ: “I am a …
DISPENSER OF
ENTHUSIASM!”
36A. Leaders Know that
“Culture Change”
Takes But a
Minute. No Bull!
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!
37. Leaders Know It’s ALL
SALES ALL THE
TIME.
Sales2001
If you don’t LOVE
SALES … find
another life. (Don’t pretend
TP:
you’re a “leader.”)
38. Leaders
LOVE
“POLITICS.”
If you don’t LOVE
POLITICS … find
another life. (Don’t pretend
TP:
you’re a “leader.”)
38A. But … Leaders Also
Break a Lot of
China
If you’re not
pissing people off,
you’re not making
a difference!
39. Leaders
Give …
RESPECT!
“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
40. Leaders
LISTEN!
See Stephen!
(Empathetic
Listening)
40A. Leaders Say
“Thank
You.”
“The deepest
human need is the
need to be
appreciated.”
William James
“The two most
powerful things I know
in existence:
a kind word and a
thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from
Ronna Lichtenberg, It’s Not Business, It’s
Personal]
41. Leaders …
SHOW UP!
“Leaders are living
individuals whom
employees smell, feel,
touch their presence.”
#49
“It is impossible to claim that all good teachers
use similar techniques: some lecture nonstop
and others speak very little; some stay close to
their material and others loose the imagination;
some teach with the carrot and others with the
stick. But in every instance, good teachers
share one trait: a strong sense of personal
identity infuses their work. ‘Dr. A is really
there when he teaches.’ ‘Mr. B has such
enthusiasm for his subject.’ ‘You can tell
that this is really Prof. C’s life.’ ”
Parker Palmer, The Courage to Teach
P.S. …
5,000
miles for a 5
min. meeting.
Mark McCormack:
42. Leadership
Is a Performance.
BELIEVE IT.
“You must be
the change you
wish to see in the
world.”
--M.G.
“It is necessary for the
President to be the
nation’s No. 1 actor.”
FDR
43. Leaders Have
GREAT
STORY!
a
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Early in my career in the law I learned
he who has
the best story
wins.”
that …
JQ Adams/A Hopkins to T Joadson/M Freeman
“Stories of identity – narratives
that help individuals think about
and feel who they are, where
they come from, and where they
are headed – constitute the
single most powerful weapon
in the leader’s arsenal.”
Howard Gardner, Leading Minds: An
Anatomy of Leadership
Leaders don’t just make products
and make decisions.
Leaders make
meaning. – John Seeley
Brown
44.
Seed &
Pursue &
Recognize (Weird)
“Demos.”
Leaders
44A. Leaders
Create
BUZZ!
L.B.I.W.D.
Inducing Weird Demos)
(Leading By
Leaders aimed on changing their
world identify
palpable
heroes, who executed
palpable projects—they
point to these people and say to
the masses, “See, here it is, done
by one of your own.” (And then they
“deep-dip” a few of those heroes to demo their
seriousness.)
45. Leaders
Focus on the
SOFT STUFF!
“Soft” Is
“Hard”
Message: Leadership is
all about love! [Passion,
Enthusiasms, Appetite for Life,
Engagement, Commitment, Great
Causes & Determination to Make a
Damn Difference, Shared Adventures,
Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother?
Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
“ ‘Goodbye,’ said the fox. ‘Now here is
my secret, a very simple secret: It is
only with the heart that one can
see rightly; what is essential is
invisible to the eye.’ ‘What is
essential is invisible to the eye,’ the
little prince repeated, so that he would
be sure to remember.”
Antoine de Saint-Exupery, The Little Prince
46. Leaders …
SERVE.
Servant
Leadership
Robert Greenleaf:
47. Leaders KNOW
THEMSELVES.
Individuals (would-be leaders)
cannot engage in a
liberating mutual discovery
process unless they are
comfortable with their
own skin. (“Leaders” who are not
comfortable with themselves become petty
control freaks.)
47A. Leaders
LAUGH!
48. Leaders Are
Graceful.
“My favorite word is grace –
grace,
saving grace, grace under
fire, Grace Kelly. How we live
whether it’s amazing
contributes to beauty – whether
it’s how we treat other people or
the environment.”
Celeste Cooper, designer
Rodale’s on “Grace” …
elegance … charm …
loveliness … poetry in
motion … kindliness ..
benevolence … benefaction
… compassion … beauty
GRACE. An evening sunset in Vermont in October. A
vase with one rose on the dining room table. A smile,
any smile. A smile from a loved one when you do
something really stupid. A hand from a stranger, when
you slip. A colleague who goes the extra mile (or inch)
and doesn’t call attention to it. A “little” “thank you”
for something you didn’t think the other person had
noticed. Any sunrise. A comfy couch. Comfy sweats.
A faithful dog’s slobbery greeting when you get home,
at 2a.m., from a 4-day bus trip. Home. A unique
pattern of ice crystals on the window on a frigid
morning. A warm, half-hour bath. The silence of the
forest. The first cherry blossoms in California in
February, or D.C. in April. Paris.
49. Leaders
???:
“LEADERS NEED TO
BE THE ROCK OF
GIBRALTAR ON
ROLLER BLADES”
“Hire smart – go
bonkers – have grace –
make mistakes – love
technology – start all
over again.”
“ ‘It’s only business,
not personal’ … IT
ALWAYS IS
PERSONAL.”
“Leadership is the
PROCESS of
ENGAGING PEOPLE in
CREATING a LEGACY
of EXCELLENCE.”
Boss Talk/WSJ
Provide a simple, clear, exciting
& energizing focus.
Obsess on TALENT.
Speed > Perfection. (Clarity, motivation, rapid adjustment.)
Leap > Line extension. (Beware “me-too,” perfecting
yesterday.)
Tell the truth.
Control your calendar.
Get out of the office.
Listen to customers face-to-face—at their place.
Juergen Schrempp/DaimlerChrysler
“Digital decision making”/
“the danger of the deadly
wish for harmony”
Branding: Kevin Roberts: “The
great brands have mystery and
sensuality. Apple is the most
sensual product since the
vibrator.”/ Tina Brown: “You should
be able to throw a magazine on the
floor at any page and know whose
magazine it is.”/
The Perils of “Me-too”: Stephen
Hardis (Eaton): “Don’t have your
resources trapped in areas that are
inherently zero-sum games with a very
marginal return.”/ Phil Condit (Boeing):
“Just doing what your competitor does
is the biggest opportunity to lose
money. Douglas and Lockheed built
tri-jets to the identical specs and beat
each other silly.”
Jeff Bezos: “It’s easy to let the inbox side of your life overwhelm
you, so you become a totally
reactive person. The only remedy I
know is to set aside some fraction
of your time as your own. I use
Tuesdays and Thursdays as my
proactive days, when I try not to
schedule meetings.”
Jeff Bezos: “I'm often
encouraging people to go
faster, even if it means a
worse initial product. I want
us to start learning. The cost
of trying to avoid mistakes
is huge in terms of speed.”
Robert Miller (Federal-Mogul), on
Turnarounds: (1) Tell the truth.
Play it straight. (2) Make
decisions. Don’t study things to
death. (3) Listen to your
customers. They are usually
more perceptive than you are
about what needs to be done.”
50. Leaders Know
WHEN TO
LEAVE!
Thank
You!