Distinct or … Extinct Tom Peters Seminar2000 Carpet One Tampa Convention Center 12 August 2000

/0509AM: 2,337,711,647

/0942AM: 2,339,010,606

Summer 2000 … KOA wires up!

Pentium III 800MHz: $42,893.00/# Hermes Scarf: $1, Saving Private Ryan on DVD: $ Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune ( )

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

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

Jacques’ New New Ford Ford + MSN CarPoint Ford + Yahoo! Ford + Oracle [Now Covisint] Ford + HP/Worldcom Etc. Etc.

Tom Peters Seminar2000 Brand Everything : Distinct or Extinct!

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 Org: Lean, Linked, Electronic & Malleable

And Now the Equivalent … White Collar Revolution!

Cisco, Dell = Brand-owning companies who sell Customer Satisfaction Source: David Schneider & Grady Means, MetaCapitalism

Brand Inside Brand Work: The WOW Project

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

Characteristics of the “Also Rans” “minimize risk” “respect the chain of command” “support the boss” “make budget” Source: Fortune on “most admired global corporations” (10/26/98)

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

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

“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” Warren Bennis & Patricia Ward Biederman

“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 ( )

Home Depot Goes Long! 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 ( )

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers” Ed Michaels, War for Talent ( )

“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 ( )

Dudes With ’Tude “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

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

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)

“Boys are trained in a way that will make them irrelevant.” Phil Slater

Talent = Brand

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

Work II The Commodity 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

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

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

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

????? $40,000,000.

Dell’s Web sales … daily

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]

Oracle: Service Call Center $ per transaction to $1.50 Savings: $550,000, Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B addnl. this year]

W.W. Grainger* 2X phone/fax *$220B “MRO” market (per Business 2.0/02-00)

Tomorrow Today: Cisco! 87% of $20B (Cisco Connection ONLINE) Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting)

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

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

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

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

“In the network economy, the Website becomes the company’s 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

“Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy.” Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00) 75% of online shoppers don’t complete their purchase!

Case in Point … L.L.Bean’s incredibly awful, amazingly pathetic, hopelessly misleading, purely putrid “Web site” (TP )

“Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch

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

“One cannot be tentative about this. Excuses like ‘channel conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24 months ago.” Jack Welch [07.00/Forbes.com]

When? NOW!

“It’s better to be first with less than last with more. Success on the Web isn’t just about time to market, it’s also about ‘time to learning.’ ” Jeff Levy, eHatchery

Getting Right Down to Brass Tacks … Bricks & Mortar? Bricks &Clicks? All Clicks All the time?

#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING TO GIVE UP THE IN-STORE SHOPPING EXPERIENCE FOR THE INTERNET IS JUST THAT. AN IDIOT.

#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO BE HANGING OUT IN STORES 15 YEARS FROM NOW IS JUST THAT. AN IDIOT.

TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE OF THE ABOVE TWO STATEMENTS IS TRUE IS THE BIGGEST IDIOT OF ALL.

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

Brand Outside Strategy 2 : Fighting Back via Systems Integration!

Message: Do More & More & More & More & More & More & More … for the Customer!

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

Defense-Offense: Systems Integration/HVA Delphi, Dana United Technologies, Corning, GE, Sun, Bud … [Anybody in their right mind!]

E.g. … GE: boxes [transformers, etc.] to “air traffic controllers of electrons” UTC/Otis + Carrier: boxes to “integrated building systems”; P&W, etc.: boxes to major aircraft subsystems

Hospitality World Translation: You are responsible, in my mind, for … THE TURNKEY TRAVEL EXPERIENCE … and I don’t discriminate among who provides what.

Hotel in Las Vegas MY STAY HAS BEEN LOUSY! YOUR PROBLEM: A GROTESQUE START. To wit: 1 hour, 7 minutes in an airport cab 10:30 P.M. (1:30 A.M. EDT)

Brand Outside Strategy 3 : Design Matters!

Message: Great Stuff Trumps Not-So-Great Stuff!

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” Norio Ohga

“Design is treated like a religion at BMW.” Fortune (10/98)

Drop-dead Charm! “The new Beetle fails at most categories. The only thing it doesn’t fail in is drop-dead charm.” Jerry Hirshberg, Nissan Design International

Design as Soul “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 meaning of design. Design is the fundamental soul of a man-made creation.” Steve Jobs

Message Beetle & iMac: “Great Stuff” Takes Guts!

Brand Outside Strategy 4 : It’s the Experience!

“Experiences are as distinct from services as services are from goods.” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & 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

“Car designers need to create a story. Every car provides an opportunity to create an adventure. … “The Prowler makes you smile. Why? Because it’s focused. It has a plot, a reason for being, a passion.” Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion

WHAT’S THE PLOT?

Brand Outside Strategy 5 : Women Rule!

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

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

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

Women … 51% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week (11-99); Jupiter Communications (8-00)

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.”

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)

Marketing to Women: Help Them Save Time! 80% … work 86% … cook 58% … run errands with kids 38% … take child to school 21% … go to the gym 21% … take outside classes

Steve Sanger, CEO, General Mills “Can we make it ‘one-handed’?”

“Women and men use the Web differently. Women are more pressed for time. For them, the Internet is really a productivity tool. … Men tend to spend more time on line just playing around.” USAToday, 08.09; Media Metrics/Jupiter Communications

How Many Gigs You Got, Man? “Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their vendor.” Robin Sternbergh/ IBM

Not a Morality Play! “It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We are marketing to women entrepreneurs because it is a huge opportunity.” Cherie Piebes

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!”

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

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]

What Can [Can’t] Be Branded? “Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they can do it, we can do it.’ ” Barry Gibbons

Scott Bedbury/ Nike, Starbucks “A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product. “A Great Brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep - a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.”

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, Tom’s of Maine

“In the funky village, real competition no longer revolves around marketshare. We are competing for attention – mindshare and heartshare.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Rules of “Radical Marketing” Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

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

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

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

“Leadership is a performance. You have to be conscious of your behavior, because everybody else is.” Carly Fiorina

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

“A leader is a dealer in hope.” Napoleon

“If things seem under control, you’re just not going fast enough.” Mario Andretti