Distinct or … Extinct Tom Peters Seminar2000 ASAE Annual Meeting and Exposition Orlando Convention Center 13 August 2000

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 ( )

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

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

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

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 ( )

“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 ( )

“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 ( )

“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

“Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

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

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

Work II The Commodity Trap

“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!

“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

“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

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

/0509AM: 2,337,711,647

/0506AM: 2,344,831,197

Or … 23hrs57min = 7,119,550

Tomorrow Today: Cisco! 87% of $20B* (Cisco Connection ONLINE) Save $500M (service and tech support) * = $48,000,000 per … DAY

COMMUNITY!/ COMMUNITY SERVICES!

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)

Plasticsnet.com : $370B; sellers pay $5K to $8K for “storefront”; 5% to 10% cut Hook: community services (database, catalogs, forums, industry job bank, etc.)

SoftWatch (MS) “Manage relationships across the healthcare continuum”/ Amir Kishon Establish e-relationships with customers/retain customers/collect data Patients record info + receive feedback/ online access to nurses Community with others with MS Etc. Source: Start-Up

B2C Success “Genuine brand strength” “Build community” Source: Geoffrey Moore

Bruce Butterfield, CEO, The Forbes Group … “self-forming groups” “catalyst for community” “participant-determined world” Source: Association Executive 4/00

Community … Somewhat mediated, segmented chat rooms (must be “managed”/ seeded) User-friendly technical/ professional info Industry “intelligence” Some very timely stuff/ attractors Hotlinks by the gazillion (to professional and unrelated stuff) Expert/ advisor opinions (info, chats, etc.) Opportunity for users to build own Web page & create own communities

Some Lessons from AOL (Yahoo, etc.) … Customized Info Customer Control Utility (convenience, speed, control, insta-choice) Self-created Community Chat/Sociability!

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

“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!

ACT NOW, ACT FAST, KEEP ACTING

“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

Web Fallout I (-) “Associations have lost their information franchise.” Bruce Butterfield, CEO, The Forbes Group (Association Executive 4/00)

Web Fallout II (-) TP: Associations are also losing their “community franchise”!

Web Fallout III (+) TP: All “the rules” are changing. Who will make the new rules- frameworks? NEED SOLIDARITY- SUSTAINED PASSION- EDUCATION-P.R.-BRAND STRENGTH IN D.C., THE W.T.O., THE MEDIA, ETC. …NOW MORE THAN EVER!

Web Fallout IV (+) ONLY INSPIRED, RISK- TAKING, ENTREPRENEURIAL LEADERSHIP WILL PREVAIL!

Brand Outside Strategy 3 : Fighting Back via Systems Integration!

“Systems Integrators” Unite [And Conquer] Cisco’s winning strategy [USAToday 07.11]: “Become the ‘Go-to’ Systems Provider”

“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, Carpet One, 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

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 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

[ Message to NAPM: You are Re-invention Evangelists! ]

How sweet it is!

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