Distinct or … Extinct Tom Peters Seminar2000 Financial Service Corporation 2000 National Education & Business Conference Atlanta 05 October 2000

Summer 2000 … KOA wires up!

When Mike Charles gets lonely, who does he talk to …

Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2% milk. Tap keypad on door. Webvan delivers in hours. Next, he sends his washer an … Source: Business Week (09.00)

N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc. Cell phones, Voice mail, , Internet access

NOW THAT’S B-I-G! “The period will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.” David Schneider & Grady Means, MetaCapitalism

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Work I 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

The [New] G e Way DYB.com

Brand Inside Brand Organization: Lean, Linked, Electronic & Malleable

And Now the Equivalent … White Collar Revolution!

Progressive “We don’t sell insurance anymore. We sell speed.” – Peter Lewis Digital cameras, wireless Net links, etc.: SOME CLAIMS PAID WITHIN 20 MINUTES! Source: Business Week (09.00)

Advance Paradigm Data on 165,000,000 prescriptions per year; docs and insurers have access to records Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save $14,000 per year in review time Rev in ’99: $2B; $477M in ’98 Source: Business Week (09.00)

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

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years) Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH INITIATIVE E.g.: COO of IKEA to head international expansion Ed Michaels, War for Talent ( )

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent ( )

Women and new- economy management …

The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic

“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

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)

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

Axiom: Never hire anyone without an aberration in their background. (Find the One Ton Cookie Man!)

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Brand Outside The Death Knell for Ordinary: Pursuing Difference!

In the Beginning … “The audit has become a commodity.” Big 5 audit partner to TP

“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

Brand Outside Strategy 1 : Use E-Commerce to Re-invent Everything!

OVERVIEW

/1221AM: 2,461,940,629

/0506AM: 2,726,431,407

36 days, 4 hours, 10 minutes … +264,490,778

Tomorrow Today: Cisco! 90% of $20B (=$50M/day) 75% mfg. outsourced; 50% of orders routed to supplier who ships direct Gross margin: 65%; Net margin: 28% Savings in service and support from customer self-management: $500M

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the Web per se. Schwab: $25B per week in asset transactions [80% of trades] [Transition to e.Schwab: Rev. fell, then quickly doubled]

COMMUNITY SERVICES!/ CUSTOMER CONTROL!

Tomorrow Today: Cisco! 90% of $20B; save $550M C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

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!

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

I Can Immediately … Shop for $1,000,000 homes or $1.95 office supplies, at best price and with best advisors Manage all my financial dealings Work with my doc, or world’s best medical experts, or humble support groups, on any health issue Recruit talent to help me with any project Develop documents collaboratively, with anyone Share my ideas with the world Chat with anyone, anywhere Research anything Take a course on any topic, from cooking to software Stay in touch with my 90 year old mom Play a gajillion games to while away the time

Shop in your Underwear Source: SM’d logo for ae = American Eagle Outfitters

“The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Amen! “The Age of the Never Satisfied Customer” Regis McKenna

SUMMARY: REINVENT EVERYTHING

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

“Banking is necessary. Banks are not.” Dick Kovacevich, Norwest/ Wells

“It” is real! It is “Life and Death”! Dream BIG! Start Now! Study Hard! Play Hard! Play Fast! Go on Offense! Hire great folks! (They ain’t cheap. They are young!) Don’t cut corners on infrastructure! Rem: “Age of the Never Satisfied Customer”! We ain’t seen nothin’ yet!

Brand Outside Strategy 2 : Women Rule!

????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.

48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

Women … 50+% (!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week; Jupiter Communications

$4.8T > Japan 9/27.5/$3.6T > Germany

Yeow! 1970 … 1% 2002 … 50%

OPPORTUNITY NO. 1!

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.”Popcorn

Women and Healthcare Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $$$$ [and constitute 2/3 of health care employees]. Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it. Women do not want … an in-your-face sales pitch Source: Kathleen Boyle, Wheat Boyle Butcher Singer

“Women Beat Men at Art of Investing” Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term)

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

Weight Watchers International “Model” “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

The New New Jiffy Lube “In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation required’ experience.” New JL: “Control over her environment. Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability.” EVEolution

“What kind of car does Mommy want?”

“I didn’t know [company] were giving company cars to secretaries.” Source: UK financial services CEO, 12/99

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS SEMINAR. [PLEASE: THINK ABOUT IT!]

27 March 2000: to TP from Shelley Rae Norbeck “I make 1/3 rd 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!”

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Brand Leadership Passion Rules!

“Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re- inventing a company (Exemplar #1: Charles Schwab)

MessagesFSC: DYB.com Death Knell for Ordinary! Seek Top Talent! Embrace the Internet Revolution! D.I.Y. /Age of the Never Satisfied Customer! It’s Women, Stupid!