Tom Peters SeminarM3 Rollercoaster Days: Learning to … Rock & Roll! Raymond James Las Vegas /

Everything has changed: E.g.: Profits & cash flow matter in valuing a stock! The I’net & B’tech revolutions haven’t nullified the business cycle. “Everyman” is not panicking. Nothing has changed: E.g.: 25 years of whitewater ahead!! There is a New Economy. The Internet will change EVERYTHING. There are many revolutions to come … hence many unforeseen winners & many unforeseen losers. Where’s the bottom: NOBODY HAS A CLUE. Duke has a good basketball team. Don’t short Krispy Kreme!

“There will be more confusion in the the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case

prior 900 years 1900s: 1 st 20 years > 1800s 2000: 10 years for paradigm shift 21 st century: 1000X tech change than 20 th 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, talk april2001

BIG MESSAGE #1:

Confusion reigns. Acknowledge it. THRIVE ON IT.

Structure 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 the old ones out.” Dee Hock

The [New] G e Way DYB.com

The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M

Brand Inside Brand You: Distinct … or Extinct

White Collar Revolution!

2010 “Demographics”: By 2010, full-time workers will be in the minority Source: MIT study (28August2000)

“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 SurvivalSkillsKit2000 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Finishing Skills Entrepreneurial Instinct CEO/Leader/Businessperson Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal

BIG MESSAGE #2:

Different or Dead !

Brand Inside Brand Talent: The Great War for Talent

“We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, COO, Enron

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 ( )Ed Michaels

MantraM3 Talent = Brand

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week,

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

“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

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

Okay, you think I’ve gone tooooo far. How about this: DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?

BIG MESSAGE #3:

Best talent wins! [Women = Best Talent?]

Brand Inside Reprise

N.W.O.: Was Is Is Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (“Failures are for fools.”) I love “Yes men” Self-contained Seat 9B, UA233 Address: Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners

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

What’s Special? “Customers will try ‘low cost providers’ because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst (10-98)

“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

BIG MESSAGE #4:

One more Time: Different or Dead !

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

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% Annual savings in service and support from customer self-management: $550M

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

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

“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

“There is 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 imagined before!

BIG MESSAGE #5:

Embrace the Web! [Or die.]

Brand Outside Strategy 1A : Embracing an e-Led Age of Self-Determination

“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

The control revolution. The potentially monumental shift in control from institutions to individuals made possible by new technology such as the Internet. Source: Introduction, The Control Revolution, Andrew Shapiro

“I’m old enough to remember when you went into a bar in the summer, they were watching a baseball game. Now, they’re watching CNBC.” Byron Wien, Chief U.S. equity strategist, Morgan Stanley Dean Witter

“It may be the most far-reaching evolution of them all: the metamorphosis of passive patient into consumer – and well-informed, assertive consumer at that. The defining axiom of traditional medicine – ‘doctor’s orders’ - is being turned on its head. These days it’s the patients who are armed, the doctors who must get wired to keep nimble.” Richard Firstman, “Heal Thyself,” On Magazine (04.01)

THE FUTURE: Patients Rule! Control Over Aging! [M&F Cosmetic Surgery, Viagra] Targeted Therapies = High Expectations The Internet! [meds, expert consultation, info- knowledge incl. outcome data & own recs, interaction with peers & docs, awareness that experts aren’t] Alt Therapies! [more visits, some insurer recognition] Awareness [medicine as front-page news, ads] Boomers! [#s, $$$, Ethos of self-control] Prevention/Wellness HMO [no-choice] Revolt “Age of Talent” [Be nice, boss!] Speed! [surgicenters, out-patient, self-admin regimens]

Sooooo … Is your strategy centered around customer-client empowerment & self- determination? Hint: This means letting go of traditional sources of power!

Brand Outside Strategy 2 : 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%

???? 80+%

Riding Lawnmowers

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

Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

“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.” Faith Popcorn

Mars & Venus! One side of a cell phone conversation, Woods Hole to Vineyard Haven ferry, March 23, 2001

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 brands. They join them.” Faith Popcorn, EVEolution Faith Popcorn

“Honey, are you sure you have the kind of money it takes to be looking at a car like this?”

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 Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters

“Women Beat Men at Art of Investing” Source: Miami Herald, reporting on a study by Profs. Terrance O’dean 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)

BIG MESSAGE #6:

(1) SHE is your client! (2) She is NOT he!

Brand Outside Strategy 3 : Welcome to “Old World”!

“‘Age Power’ will rule the 21 st century “We are woefully unprepared.” Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old

Subject: Marketers & Stupidity It’s 18-44, stupid!* *18-24: XFL

Subject: Marketers & Stupidity Or is it: “18-44 is stupid, stupid!”

Stats 18-44: -1% 55+: +21% (55-64: +47%)

[ Member Growth: 1987 – – 34: 26% 35 – 49: 63% 50+: 118% Source: IHRSA]

TP to IHRSA: Look this way! I am your ideal body type!

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/5M auto loans $610B healthcare spending 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old

Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access … Respect!

BIG MESSAGE #7:

SHE is getting older.

[Trends #1, #2 – or #2 & #1,#3: Women, Aging, Greening]

Protect the environment: 52% Develop more energy: 36% Equal: 6% No opinion or Other: 6%: Source: Gallup 3-5 March 2001

Brand Outside Strategy 4 : BRAND POWER!

“WHO ARE YOU [these days] ?” TP to Client

“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 to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies

“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 Jesper Kunde

“Brand Promise” Exercise: (1) Who Are WE? (1 page, 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!

“Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00)

“ 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

Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency & freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments, all hands affair.

“WHO ARE WE?”

“WHO AM I ?”

“EXACTLY HOW AM I/ ARE WE DIFFERENT?”

“HOW DO I CONVEY THAT DIFFERENCE TO THE CLIENT ”

“You must be the change you wish to see in the world.” Gandhi

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

TP’s ultimate accolade: “Charles is an enthusiast ! ”

“A leader is a dealer in hope.” Napoleon

“ WHY DOES IT MATTER TO THE CLIENT?”

“Let’s make a dent in the universe.” Steve Jobs

BIG MESSAGE #8:

Who ARE you? What’s your CAUSE?