GMAC Home Services San Francisco

All Slides Available [NOW] at … tompeters.com

Hen 37,000 feet …

Microsoft = R.O.W. Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg Source: Business Week data through 5-99

Microsoft = R.O.W. (II) Microsoft > GM + Ford Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg + McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats Source: Yastrow Marketing (through )

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)

64/24

Goal?

TP2000: A Broken Record GE Power Systems Anheuser Busch FitLinxx Yellow Freight Fidelity Time Inc.

Web Total Reinvention Consumer Control Speed Terror/ Opportunity Brand Power/ Communication Imperative

“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

S.A.V.

Work 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

“Steve Ross had a wonderful philosophy: People get fired for not making mistakes.” Bob Pittman

C.E.O. to C.D.O.

Brand Inside Brand Org!

And Now the Equivalent … White Collar Revolution!

“The coefficient of friction associated with the grunge of business is amazing!” Michael Schrage

RR on 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.”

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

Brand Inside Brand Work!

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

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)

“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!

Seminar Y2K/Brand Inside Message: 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

Icon Woman … –Totally turned on by her work! –“It” matters / a WOW Project! –“It” is … COOL! –“It” is … BEAUTIFUL! –She is … in your face! –She is an … adventurer! –She is … CEO of her own life!

Icon Woman … - She is … at least … a little funky! –Her curiosity is … insatiable! –She thinks screwups are … as normal as breathing! –She hangs out with some … seriously rad Dudes! –She is not God. She is not Bionic Woman. She is … determined to make a damned difference!

“Well-behaved women rarely make history.” Anita Borg, Institute for Women and Technology

Icon Woman Meets the Web … –submits resume on the Web –recruited on the Web –hired on the Web –trained on the Web –creates and conducts projects with virtual teams on the Web –manages project and client follow-up on the Web –manages career/reputation-building on the Web

New Economy Advice from The Cluetrain Manifesto Relax! Have a sense of humor! Find your voice and use it! Tell the truth! Don’t panic! Enjoy yourself! Be Brave! Be curious! Play more! Dream always! Listen up! Rap on!

What Do I “Do” First? One Minute Excellence!* *Thomas Watson

Brand Inside Brand Talent!

Issue Y2K The Great War for Talent!

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

“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!)

The NAESP …

Attributes of Those Who “Made” the 10th Grade History Book –Committed! –Determined to make a difference! –Focused! –Passionate! –Irrational about their life’s project! –Ahead of their time / Paradigm busters! –Impatient! / Action Obsessed

Attributes of Those Who “Made” the 10 th Grade History Book –Made lots of people mad! –Flouted the chain of command! –Creative / Quirky / Peculiar! / Rebels! / Irreverent! –Masters of improv / Thrive on chaos / Exploit chaos!

Attributes of Those Who “Made” the 10 th Grade History Book –Forgiveness > Permission –Bone honest! –Flawed as the dickens! – “In touch” with their followers’ aspirations –Damn good at what they do!

Just Say “No” to “Grout”! Participant: “Don’t you need ‘grout’ between the tiles?” TP: “No!” [med staff, NFL Special Teams,waiters, PFCs, cymbals player, bit parts, waiters]

Talent = Brand

Brand Outside = Brand Inside

Brand Outside Context: No “Commodities”!

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

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

“When we did it ‘right’ it was still pretty ordinary.” Barry Gibbons on “Nightmare No. 1”

Pretzel Crumb-less-ness Plus … “The Ritz Carlton Experience enlivens the senses, instills well-being and fulfills even the unexpressed wishes and needs of the guest.” from the Ritz Carlton Credo

“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” Jerry Garcia

Nirvana! - Nordstrom - Four Seasons - Adirondack Guide Boat - OXO - Ziplocs - Magnificent Mile

Why? Cool!/Surprising! Reliable! Friendly!/Comfortable! Aesthetically pleasing!

Consider … What words and emotions do you use to describe the things you love?

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

$35,000,000. = ???

Dell’s Web sales … daily

2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)

I-24 to 1-28: BizRate.com Online Shopping Index [Consumer Goods] 52 Weeks: +622% Source: The Industry Standard/02-00

Tomorrow Today: Cisco! $7B of $10B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)

Message … COMMUNITY!/ COMMUNITY SERVICES!

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”

“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

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

Getting Right Down to Brass Tacks … Bricks & Mortar? Clicks & Mortar? 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 JUST THAT. AN IDIOT.

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 … 49% 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)

$3.3T + $1.5T = $4.8T* * Larger than Japan!

Most Under-reported story! 9M*/28M(1 of 4)/$3.6T [> Germany] * 400K in ’72; 132% since ’92 Sources: NFWBO, Cognetics, Business Wire (030600)

Yeow! 1970 … 1% 2000 … 50%

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 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 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, control 2/3 of health care $$$$ and constitute 2/3 of health care employees. Source: Patricia Braus, Marketing Healthcare to Women

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

It’s Simple … Women are more thoughtful and more deliberate than men!

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 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

Mantra: “Any good can be ing -ed” the driv ing experience the pump ing experience the sitt ing experience the read ing experience the wash ing experience the cook ing experience Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

“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

To Do … Carefully think through every aspect of “the experience of us.”

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]

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

Brand = Distinction = Passion = Connection = Caring

“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)

Brand Leadership Lead Out Loud!

Brand Leadership! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership

“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

Ann Richards’ Dogma Show up! Know your message! PUT YOURSELF AT RISK EVERY DAY!

“If you ask me what I have come to do in this world, I who am an artist, I will reply, I am here to live my life out loud.” Emile Zola