1. Tom Peters Re-Imagine! Defining Service Excellence in a Disruptive Age HDI/Las Vegas/03.18.2003

2. Slides at … tompeters.com

3. I. Its a Brand New World.

4. If you dont like change, youre going to like irrelevance even less. General Eric Shinseki, Chief of Staff, U. S. Army

5. IT MAY SOMEDAY BE SAID THAT THE 21 ST CENTURY BEGAN ON SEPTEMBER 11, 2001. … Al-Qaeda represents a new and profoundly dangerous kind of organizationone that might be called a virtual state. On September 11 a virtual state proved that modern societies are vulnerable as never before.Time/09.09.2002

6. From: Weapon v. Weapon To: Org structure v. Org structure

7. The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.

8. Eric Shinsekis New Army Flat. Fast. Agile. Adaptable. Light … But Lethal. Talent/ I Am An Army Of One. Info-intense. Network-centric.

9. II. Connect.

10. Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21 st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.Ned Desmond/Broadbands New Killer App/Business 2.0/ OCT2002

11. Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer thats pre-programmed. If the physician wants, well go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away. David Veillette, CEO, Indiana Heart Hospital (Healthleaders/12.2002)

12. If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-sale- scanners share information on a near real- time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage. Tom Stewart, Business 2.0

13. Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

14. Autobytel: $400. Wal*Mart: 13%. Source: BW(05.13.2002)

15. III. eVERYTHING.

16. WebWorld = Everything Web as a way to run your businesss innards Web as connector for your entire supply-demand chain Web as spiders 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 Worlds Best at Everything as next door neighbor

17. 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

18. Case: CRM

19. Anne Busquet/ American Express Not: Age of the Internet Is: Age of Customer Control

20. Amen!The Age of the Never Satisfied Customer Regis McKenna

21. CRM has, almost universally, failed to live up to expectations. Butler Group (UK)

22. No! No! No! FT: The aim [of CRM] is to make customers feel as they did in the pre-electronic age when service was more personal.

23. CGE&Y (Paul Cole): Pleasant Transaction vs. Systemic Opportunity. Better job of what we do today vs. Re- think overall enterprise strategy.

24. IV. For Real.

25. Here We Go Again: Except Its Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3 rd ; 3.3M; 50% lower attrition rate; 50% higher growth in balances than off- line; more likely to cross-purchase; happier and stay with the bank much longer. B of A: 4M of 15M (… way beyond the early adopters). Source: The Wall Street Journal/10.21.2002

26. V. Add [LOTS OF] Value … or Else.

27. Base Case: The Sameness Trap

28. While everything may be better, it is also increasingly the same. Paul Goldberger on retail, The Sameness of Things, The New York Times

29. 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 Nordström and Jonas Ridderstråle, Funky Business

30. Companies have defined so much best practice that they are now more or less identical. Jesper Kunde, Unique now... or never

31. The Big Day!

32. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

33. These days, building the best server isnt enough. Thats the price of entry. Ann Livermore, Hewlett-Packard

34. Gerstners IBM: Systems Integrator of choice. Global Services: $35B. Pledge/99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

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

36. Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the customers profitability. Are customers bottom lines really benefiting from what we provide them? Bob Nardelli, GE Power Systems

37. Keep In Mind: Customer Satisfaction versus Customer Success

38. UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

39. Everybodys Doin It! The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals … and moving ever higher up the value chain.The Economist/01.11.2003

40. VI. And More …

41. 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

42. 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 thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager

43. 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

44. WHAT CAN BROWN DO FOR YOU?

45. The Experience Ladder Experiences Services Goods Raw Materials

46. Its All About EXPERIENCES: Trapper to Wildlife Damage-control Professional Trapper: <$20 per beaver pelt. WDCP: $150/problem beaver; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ/05.21.2002

47. VII. SHE Is the Customer.

48. Women & the Marketspace.

49. ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (home projects) … 80% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80%

50. 2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

51. Yeow! 1970 … 1% 2002 … 50%

52. 91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women)

53. Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to womens needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

54. Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

55. FemaleThink/ Popcorn Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons. He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.Popcorn

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

57. EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

58. 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

59. What If … What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners? What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with todays skills? EVEolution

60. Women dont buy brands. They join them. EVEolution

61. 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 4. Women buy lotsa stuff. 5. WOMEN BUY A-L-L THE STUFF. 6. Womens Market = Opportunity No. 1. 7. Men are (STILL) in charge. 8. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 9. Womens Market = Opportunity No. 1. 10. NO BULL.

62. Customer is King: 4,440 Customer is Queen: 29 Source: Steve Farber/Google search/04.2002

63. VIII. And Dont Forget ME.

64. Subject: Marketers & Stupidity Its 18-44, stupid!

65. Subject: Marketers & Stupidity Or is it: 18-44 is stupid, stupid!

66. 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

67. Aging/Elderly $$$$$$$$$$$$ Im in charge!

68. NOT ACTING THEIR AGE : As Baby Boomers Zoom into Retirement, Will America Ever Be the Same? USN&WR Cover/06.01

69. Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

70. Marketers attempts at reaching those over 50 have been miserably unsuccessful. No markets motivations and needs are so poorly understood. Peter Francese, founding publisher, American Demographics

71. Households headed by someone 40 or older enjoy 91% ($9.7T) of our populations net worth. … The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

72. Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

73. Age Power will rule the 21 st century, and we are woefully unprepared. Ken Dychtwald, Age Power : How the 21 st Century Will Be Ruled by the New Old

74. IX. Alice & Mike Know!.

75. Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast. Lewis Carroll

76. Inet … … allows you to dream dreams you could never have dreamed before!

77. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

78. Dont rebuild. Reimagine. The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002