Delphi e.Business Summit2000 San Diego 9 May 2000

Defeated Before The Starters Gun! Track 4: Managing Organization Change (Helping Tired and Overworked Professionals with Todays Workplace Realities)

You are the Rock Stars of the B2B Age!

No Wiggle Room! Incrementalism is innovations worst enemy. Nicholas Negroponte

Just Say No … I dont intend to be known as the King of the Tinkerers. CEO, large financial services company (New York, 5-99)

It means nothing less than the total reinvention of this company.

Jacques New New Ford Ford + MSN CarPoint Ford + Yahoo! Ford + Oracle Ford + HP/MCIWorldcom Etc. Etc.

We are in a brawl with no rules. Paul Allaire

S.A.V.

Work The Destruction Imperative!

Forget > Learn The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out. Dee Hock

Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters

Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. … John Chambers, Cisco

R & D Intels venture fund: 275 investments, $3.5B Source: Fast Company (12-99)

Net World! Act now. Analyze later. Avram Miller

With the arrival of the Internet, corporate control has completely disappeared. Business today is about all kinds of companies participating to make something happen. Nobody knows any more what the products will do and what the markets will be. Markets define themselves. You have to be able to react to them organically….Control is an illusion. I dont think that it ever existed, but now even the illusion is gone. Avram Miller

Steve Ross had a wonderful philosophy: People get fired for not making mistakes. Bob Pittman

Brand Inside Brand Org!

108 X 5 vs. 8 X 1* * 540 vs. 8

And Now the Equivalent … White Collar Revolution!

The Pincer 5 Destructive entrepreneurs/ Global Competition White Collar Robots THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!

Assetless Company J.B.

RR on Sara Lee The most profitable businesses in the future will act as knowledge brokers, linking insights into whats available with insights into the customers individual needs and preferences.

The &-!!+#$% in the middle* Jim Clark on Healtheon/WebMD * twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael Lewis, The New New Thing

We want to be the air traffic controllers of electrons. Bob Nardelli, GE Power Systems

So does Enron! [et al.]

Buzzsaw.com Builders, Owners, Architects, Contractors, Suppliers $3T industry 5,300 commercial bldg. projects specs on-line; +70 per day

And … e-Builder [et al.]

These are … L.A.D.T.I.R.S.* *Life-and-death-total-industry-reinvention- struggles

Brand Inside Brand Work!

Why are there no books on how to create a Cool, Rocking, WOW-producing Finance Department?

PSF 1.0 Department Head to … Managing Partner, HR [IS, etc.] Inc.

support function / cost center / bureaucratic drag or … Rock Stars of the Age of Talent

[I.e.: Welcome to the Y2K New Orleans Jazz and Real Cool Purchasing Dudes Festival!]

Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec

But Does It Matter ???? On time, on budget … who cares? anon. seminar participant (4/99)

You really got to me. So many of our information technology projects take on a life of their own, and I know theyll never end up as more than mediocre successes. CEO, F100 financial services company (10-98)

Measures –WOW! –Beauty! –Raving Fans! –Impact!

Every project we take on starts with a question: How can we do whats never been done before? Stuart Hornery, CEO, Lend Lease

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

Brand Inside Brand You!

DISTINCT … OR EXTINCT!If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed and that increasingly means you wont get paid much, either. Michael Goldhaber, Wired

Personal Brand Equity Evaluation –I am known for [2 to 3 things]; next year at this time Ill also be known for [1 more thing]. –My current Project is challenging me … –New things Ive learned in the last 90 days include … –My public recognition program consists of … –Additions to my Rolodex in the last 90 days include … –My resume is discernibly different from last years at this time …

Bill Parcels World/ Brand You World! BLAME NOBODY! EXPECT NOTHING! DO SOMETHING! NY Post (9/99)

Brand Inside Brand Talent!

Issue Y2K The Great War for Talent!

There is no talent shortage … if … you are a GPTW* *Great Place To Work

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

The NAESP …

Attributes of Those Who Made the 10th Grade History Book –Committed! –Determined to make a difference! –Focused! –Passionate! –Irrational about their lifes project! –Ahead of their time / Paradigm busters! –Impatient! / Action Obsessed

Attributes of Those Who Made the 10 th Grade History Book –Made lots of people mad! –Flouted the chain of command! –Creative / Quirky / Peculiar! / Rebels! / Irreverent! –Masters of improv / Thrive on chaos / Exploit chaos!

Attributes of Those Who Made the 10 th Grade History Book –Forgiveness > Permission –Bone honest! –Flawed as the dickens! – In touch with their followers aspirations –Damn good at what they do!

He grew his hair long, played guitar in a rock band, chased girls, got into trouble. At age 17 he was flogged by his house master, who described him as the most difficult boy Ive ever had to deal with.

Solution? Ritalin [a chemical virtually identical to cocaine/Reason magazine] Or …

Elect Him Prime Minister Tony Blair* *talk/May 2000

Brand Outside Context: No Commodities!

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

We make over three new product announcements a day. Can you remember them? Our customers cant! Carly Fiorina

The 10X/10X Phenomenon 10 Times Better/ 10 Times Less Different

When we did it right it was still pretty ordinary. Barry Gibbons on Nightmare No. 1

You do not merely want to be the best of the best. You want to be considered the only ones who do what you do. Jerry Garcia

Brand Outside Strategy 1 : Lead the Customer!

The customer is a rear view mirror, not a guide to the future. George Colony, Forrester Research If you worship at the throne of the voice of the customer, youll get only incremental advances. Joseph Morone, President, Bentley College

Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown. Kevin Kelly, New Rules for the New Economy

Amen!The Age of the Never Satisfied Customer Regis McKenna

Brand Outside Strategy 2 : Use E-Commerce to Re-invent the Business!

In the network economy, the Website becomes the companys primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post- sales support all rolled into one. Jakob Nielsen, Designing Web Usability

Tomorrow Today: Cisco! $7B of $10B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)

Cherry Picking Vertical Markets Plasticsnet.com: $370B; sellers pay $5K to $8K for storefront; 5% to 10% cut Hook: community services (database, catalogs, forums, industry job bank, etc.)

The Motley Fool Secret? Strangers helping strangers Fools Logic, IW

Message … COMMUNITY!/ COMMUNITY SERVICES!

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

Anne Busquet/ American Express Not: Age of the Internet Is: Age of Customer Control

B2B … … the enormity emerges!

GM/Ford/DaimlerChrysler (02-27) Auto parts supply Co. $240B (+$500B) I.P.O.

Goal? Drive profits to zero!* *Remember AMR and dynamic pricing.

Paradox!? Community Services/V.A. Waste Extraction

Where does the Internet rank in priority? Its No. 1, 2, 3, and 4. Jack Welch

… if they set up a completely independent organization and let that organization attack the parent. Clayton Christensen, The Innovators Dilemma

Even if executives of established businesses grasp the impact of new technologies … they still face a massive competitive disadvantage precisely because they are incumbents. … They do complex financial calculations and get bogged down in internal political debates. Insurgents have no such inhibitions. Philip Evans & Thomas Wurster, Blown to Bits

There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!

Web Strategy: GE Power Systems Launch and Learn (4 sites in 30 days)

He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd

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

= Encompassing [albeit fluid] Vision

The e-conomy is one of re-intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change. Thomas Koulopoulos, Delphi Group

Brand Outside Strategy 3 : Design Rules!

Design as Soul We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation. Steve Jobs

Aesthetic sensibility.

Grace.

Brand Outside Strategy 4 : Its 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 thats not work or home. Its 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

Mantra: Any good can be ing -ed the driv ing experience the pump ing experience the sitt ing experience the read ing experience the wash ing experience the cook ing experience Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

[Think … B2B-ing]

Brand Outside BRAND POWER!

Brand It! Now, More Than Ever! The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand. Gillian Law and Nick Grant, Management [New Zealand]

Brand = You Must Care! Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about. Tom Chappell, Toms of Maine

The Network is the Brand! You are in the Brand Building business!

Brand Leadership Passion Rules!

Brand Leadership! A key – perhaps the key – to leadership is the effective communication of a story. Howard Gardner Leading Minds: An Anatomy of Leadership

Brand Leadership: ENTHUSIASM RULES! I am a dispenser of enthusiasm./ Ben Zander

[Message: You are Re-invention Evangelists!]

Ann Richards Dogma Show up! Know your message! PUT YOURSELF AT RISK EVERY DAY!

Id rather regret the things I have done than the things I have not. Lucille Ball