Tom Peters Seminar2000 Distinct or … Extinct OLA San Diego 04Novem ber2000

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.com delivers in hours. Next, he sends his washer an … Source: Business Week (09.00)

Um … Eduardo Kac and Alba, the glowing* bunny rabbit! *You can thank one selfless jellyfish and several French scientists! Source: Rutland Herald ( )

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

“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0 (08.00)

“It used to be that the big ate the small. Now the fast eat the slow.” Geoff Yang, IVP/ (Institutional Venture Partners)

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)

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

Paradox Redux Atlanta: +113,600 = #1 metro area Layoffs [major]: BellSouth, Lockheed, Coca-Cola

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

White Collar Revolution!

RR on “Assetless” [J.B.] Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

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)

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

Brand Inside Brand Work: The WOW Project

The Raw Material … The WOW Project!

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

Brand Inside Brand You: Distinct … or Extinct

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

Invent. Reinvent. Repeat. Source: HP banner ad

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

“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 ( )

“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 ( )

“Where do good new ideas come from? That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.” Nicholas Negroponte

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

Women: Born to Lead! Women and new- economy management …

“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty- first-century economic community are going to need the natural talents of women. Helen Fisher, The First Sex: The Natural Talents of Women and How They are Changing the World

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

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

Mantra2000 Talent = Brand

N.W.O.: Was-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! “Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.” J.D. Power

“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

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”

Brand Outside The Death Knell for Ordinary: Pursuing Difference!

My [Sorry] Experience I have no acute problems. I view the “glasses thing” as an annoyance of getting old. I have not been educated; I am now stunned at my options. A little thing [frame defect] can ruin the entire experience. Your [collective] sales and education effort has been underwhelming. As I prepared for this seminar, I became very annoyed! I am a [classic?] missed opportunity.

Brand Outside Strategy 1 : Lead the Customer!

“If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College

“These days, you can’t succeed as a company if you’re consumer led – because in a world so full of so much constant change, consumers can’t anticipate the next big thing. Companies should be idea- led and consumer- informed.” Doug Atkin, partner, Merkley Newman Harty

“Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.” John Roth, CEO, Nortel

Nypro!

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

OVERVIEW

/1221AM: 2,461,940,629

/0516AM: 2,943,684,326

66 days, 4 hours, 55 minutes … +481,743,697

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

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

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

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)

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

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

SWA Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t believe they’re done) 30% of revenues directly from site (vs. 6% for others) Source: Business Week (09.00)

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

Brand Outside Strategy 3 : Fighting Back via Systems Integration!

THE CASE

B2B 1999 – 2004: 50X 2004: $7.4 T Source: GartnerGroup (per Reuters )

GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B) I.P.O.

Solectron, IBM, Nortel, Matsushita, Seagate, Etc. E2Open.com $700 B

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

Message: “BOX” SELLERS LOSE!

THE RESPONSE

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting bus! (31,000 bods)

“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett Packard

“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, HP, Carpet One, Bud … [Anybody in their right mind!]

E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”

Message: WHAT IS THE “VALUE [ADDED] PROPOSITION”?

Brand Outside Strategy 4 : Design Matters!

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

“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: “Great - Cool Stuff” Matters. Great & Cool Trumps Not-So-Great & Ho Hum!

Unconventional [Design] Messages Not about... “Lumpy Objects”! Not about... $79,000 objects

Lady Sensor, Mach3, and … $70M on developing the OralB CrossAction toothbrush 23 patents, including 6 for the packaging Source: [06.00]

Design “is” … WHAT & WHY I LOVE. LOVE.

Design “is” … WHY I GET MAD. MAD.

Design is never neutral.

Hypothesis: DESIGN is the principal difference between love and hate!

Brand Outside Strategy 5 : 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

“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

LAN Installation Co. to Geek Squad (2% to 30%/Minn.)

Brand Outside Strategy 6 : 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]

“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

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

T.T.D./Calling the Corporate Shrink! “Organizational Psychotherapy”/ WHO WE ARE!

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)

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