Distinct or … Extinct Tom Peters Seminar2000 P RICEWATERHOUSE C OOPERS FAS Team Learning 2000 Dallas 10 July 2000

“There’s going to be a fundamental change in the global economy unlike anything we have had since the cavemen began bartering.” Arnold Baker, Chief Economist, Sandia National Laboratories

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

Summer 2000 … KOA wires up!

“There is probably going to be more confusion in the business world in the next decade than there has been in any decade in history.” Steve Case (2-00)

“We are in a brawl with no rules.” Paul Allaire

No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company (New York, 5-99)

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

“It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control

“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

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

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!!

“More and more companies these days want to be like Cisco. They want to focus on their core business and outsource all the superfluous stuff, like human resources, procurement and accounting.” Forbes.com, , on ASPs

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.”

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

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

Brand Inside Brand Work!

New Orleans April 2000: Jazz Festival + NAPM

Welcome to the Y2K New Orleans Jazz and Real Cool Purchasing Dudes Festival!

Chicago November 1999: SHRM

Message: You are Rock Stars of the “Age of Talent”

Every job done in W.C.W. is also done “outside” … for profit!

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

The Nub … The WOW Project!* *The Project50

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

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

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

“You are the storyteller of your own life, and you can create your own legend or not.” Isabel Allende

Brand Inside Brand Talent: The Great War for Talent

Issue Y2K 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

“The market’s being divided up right now. We’re in a tough competition [with the U.S. and the U.K.] for the best brains.” Gerhard Schroeder, on Germany’s new tech immigration policy [Frankfurter Allgemeine/ ]

Winner Take All! From “1, 2 or 3” [JW] to … “Best talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent ( )

“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

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

“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s the relentless rise of the quasi- adolescents who wield them.” Michael Schrage

“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 ( )

“The Rise of the Teen Guru” “They’re brilliant, ambitious, and almost intuitively gifted at technology. A new generation of whiz kids are gaining unprecedented power and authority – and, as a new [Carnegie Mellon] study shows, they’re reshaping the American family.” Case in point: Shawn Fanning, 19, Northeastern dropout, Napster founder Source: Cover story, Brill’s Content, 7-8/00

Talent War Y2K! –All out!/ Time consuming! –Never ending!/ Unwinnable! –Includes everybody!/ Everybody’s game! (“We’re all in sales.”) –Expensive! –Cool!/ WOW!/ Fun!/ Creative! –Strategic!/ Core competence!

Talent War Y2K! –Brand You within Brand Us! –Encompassing!/ Cultural! (KEWLNESS: mine v. yours) –Substantive!/ “The best Projects win!” [Cairo 12-99] –Basis of Brand!/ WHO WE ARE!

Talent = Brand

“The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in recruits.” Burke Stinson, AT&T

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

Work II The Commodity Trap

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

“We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina

“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

Brand Outside Strategy 1 : Lead the Customer!

“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

Emphasize “Lead” customers! K2K

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

Tomorrow Today: Cisco! 90% of $14.4B (Cisco Connection ONLINE) Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting)

Message … COMMUNITY!/ COMMUNITY SERVICES!

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

“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

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

Brand Outside Strategy 3 : 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

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]

“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

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

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

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

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