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EFI The BIG Shindig! Orlando/04.04.00
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“It means nothing less than the total reinvention of this company.”
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Jacques’ New New Ford Ford + MSN CarPoint Ford + Yahoo! Ford + Oracle Ford + HP/MCIWorldcom Etc. Etc.
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No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
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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)
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64/24
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Goal?
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“We are in a brawl with no rules.” Paul Allaire
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S.A.V.
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Forces @ Work The Destruction Imperative!
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“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I draw a blank.’ ” Mark Sirower, The Synergy Trap
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“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
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“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
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Built to Last v. Built to Flip “The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.” “Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.” Fast Company (03-00)
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C.E.O. to C.D.O.
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The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
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Paradox Redux Atlanta: +113,600 = #1 metro area Layoffs [major]: BellSouth, Lockheed, Coca-Cola
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Brand Inside PSF 1: Brand Org!
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And Now the Equivalent … White Collar Revolution!
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108 X 5 vs. 8 X 1* * 540 vs. 8
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“The coefficient of friction associated with the grunge of business is amazing!” Michael Schrage
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The Pincer 5 “Destructive” entrepreneurs/ Global Competition “White Collar Robots” THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!
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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.”
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The “&-!!+#$% in the middle”* Jim Clark on Healtheon/WebMD * ’twixt docs, patients and providers; $300B in waste (?); source: Michael Lewis, The New New Thing
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[ Incidentally … CEO Jeff Arnold Age: 30 First Start-up: Age 24]
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“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
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Brand Inside PSF 2: Brand Work!
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Why are there no books on how to create a “Cool, Rocking, WOW-producing Finance Department”?
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PSF 1.0 Department Head to … Managing Partner, HR [IS, etc.] Inc.
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“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
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But Does It Matter ???? “On time, on budget … who cares?” anon. seminar participant (4/99)
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“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)
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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)
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Brand Inside PSF 3: Brand You!
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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
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“If one quarter can’t make the journey, that’s the way it has to be.” Carly Fiorina (1-00/Forbes)
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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!
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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!
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“Well-behaved women rarely make history.” Anita Borg, Institute for Women and Technology
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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
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Seminar Y2K/Brand Inside Message: Distinct … or Extinct!
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Brand Inside PSF 4: Brand Talent!
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Issue Y2K The Great War for Talent!
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There is no “talent shortage” … if … you are a GPTW* *Great Place To Work
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“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
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The NAESP …
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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
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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!
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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!
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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]
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Talent = Brand
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Brand Outside = Brand Inside
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Brand Outside Context: No “Commodities”!
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In the Beginning … “The audit has become a commodity.” Big 5 audit partner to TP
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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
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“We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina
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“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
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The “10X/10X Phenomenon” 10 Times Better/ 10 Times Less Different
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“When we did it ‘right’ it was still pretty ordinary.” Barry Gibbons on “Nightmare No. 1”
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Nirvana! - Nordstrom - Four Seasons - Adirondack Guide Boat - OXO Good Grips - Ziplocs - Power Point
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Why? Cool!/Surprising! Reliable! Friendly!/Comfortable! Aesthetically pleasing!
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Consider … What words and emotions do you use to describe the things you love?
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“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
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“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
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Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion
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6 Sigma or “Jazzy Offerings”? WSJ/2-9-00: Nokia extends market share lead [22.5% in ’98 to 26.9% in ’99] over Motorola [19.5% to 16.9%]
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!
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Brand Outside Strategy 1 : Lead the Customer!
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“The customer is a rear view mirror, not a guide to the future.” George Colony, Forrester Research “If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College
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“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
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“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
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Good = Bad/ 1 of 30,000 “We are crazy. We should do something when people say it is ‘crazy.’ If people say something is ‘good’, it means someone else is already doing it.” Hajime Mitarai, Canon
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Amen! “The Age of the Never Satisfied Customer” Regis McKenna
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!
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Brand Outside Strategy 2 : Use E-Commerce to Re-invent the Business!
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2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)
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Dell’s Web sales … daily ?
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$35,000,000.
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Tomorrow Today: Cisco! $7B of $10B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)
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Message … COMMUNITY!/ COMMUNITY SERVICES!
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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
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Psych 101: Strongest Force on Earth? My need to be in perceived control of my universe!
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Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”
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“Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch
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There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!
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Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.
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Translation … Bureaucracy free = Flat org, no B.S. Systemically integrated = Whole supply chain tightly wired/ friction free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever “Instantly” responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements
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Getting Right Down to Brass Tacks … Bricks & Mortar? Clicks & Mortar? All Clicks All the time?
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#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING TO GIVE UP THE IN-STORE SHOPPING EXPERIENCE FOR THE INTERNET IS JUST THAT. AN IDIOT.
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#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO BE HANGING OUT IN STORES 15 YEARS FROM NOW IS JUST THAT. AN IDIOT.
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TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE OF THE ABOVE TWO STATEMENTS IS TRUE IS THE BIGGEST IDIOT OF ALL.
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!
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Brand Outside Strategy 3 : Women Rule!
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????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.
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48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed
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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)
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$3.3T + $1.5T = $4.8T* * Larger than Japan!
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Most Under-reported story! 9M*/28M(1 of 4)/$3.6T [> Germany] * 400K in ’72; 132% since ’92 Sources: NFWBO, Cognetics, Business Wire (030600)
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Yeow! 1970 … 1% 2000 … 50%
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OPPORTUNITY NO. 1!* [* No shit!]
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Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities
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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.”
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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
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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 and control 2/3 of health care $$$$ [and constitute 2/3 of health care employees]. Source: Patricia Braus, Marketing Healthcare to Women
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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
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Not!! “Year of the Woman”
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Enterprise Reinvention! Recruiting Hiring/Rewarding/ Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF!
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“What kind of car does Mommy want?”
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Not a Morality Play! “It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We are marketing to women entrepreneurs because it is a huge opportunity.” Cherie Piebes
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!
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Brand Outside Strategy 4 : Design Rules!
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And Tomorrow … “Fifteen years ago companies competed on price. Now It’s quality. Tomorrow it’s design.” Robert Hayes
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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
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Object of Desire! “Every now and then, a design comes along that radically changes the way we think about a particular object. Case in point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.” Katherine McCoy, Michael McCoy, Illinois Institute of Technology
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Design as Soul “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
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The I.D. [International Design] Forty* Airstream … Alfred A. Knopf … Apple Computer … Amazon.com … Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance … Nickelodeon … Patagonia … The New York Yankees … 3M … Etc. * List No. 1, 1999
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!
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Brand Outside Strategy 5 : It’s the Experience!
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“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
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“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
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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
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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
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“This is the end of the pure product era. For instance, car makers are beginning to understand that the car is a platform for delivering services that drive the customer experience.” Carly Fiorina, HP @ Comdex ’99
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Master E-Commerce! S3: Women Rule! S4: Design Rules! (too) S5: It’s the Experience! Bottom Line: Glorious Age of the BRAND!
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Brand Outside BRAND POWER!
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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]
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No Room for Brands? Nike Saturn CNN America Online Charles Schwab Starbucks The Gap Intel Etc.
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Calling the Corporate Shrink! “Organizational Psychotherapy”/ WHO WE ARE!
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“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the company’s attitudes and values becomes the decisive parameter for success. It demands that you find out who you are as a company.” Jesper Kunde, Corporate Religion
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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
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“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
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Rules of Radical Marketing Love + Respect Your Customers! Just Say No … to Market Research! 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)
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Brand Leadership Passion Rules!
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My McNamara Hang Up!
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Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander
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Brand Leadership! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership
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“Leadership is a performance. You have to be conscious of your behavior, because everybody else is.” Carly Fiorina
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Ann Richards’ Dogma Show up! Know your message! PUT YOURSELF AT RISK EVERY DAY!
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A new world is being born. All the old “rules” are irrelevant/dangerous. All the old “roles” are irrelevant/dangerous. WE GET TO MAKE IT UP AS WE GO. “It” is a hoot! “It” is scary! It is liberating! Jacques [and I] want to be “Players”!
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And You?
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