1. Distinct or … Extinct Tom Peters Seminar2000 United Technologies Research Center East Hartford 26 June 2000

2. Pentium III 800MHz: $42,893.00/# Hermes Scarf: $1,964.29 Saving Private Ryan on DVD: $874.75 Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune (3.20.00)

3. An Age of Passion: 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.: Wal*Mart = #8 in 2000

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

5. 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)

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

7. Forces @ Work I The Destruction Imperative!

8. Forget > Learn “The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.” Dee Hock

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

10. Headlines 06.15.00: Your Call! Bell Atlantic-GTE vs. Lucent

11. “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

12. Pentium III 800MHz: $42,893.00/# Cisco Engineer: $19,000.00 Hermes Scarf: $1,964.29 Saving Private Ryan on DVD: $874.75 Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune (3.20.00)

13. Enron (per Gary Hamel/Fortune/06.00) Design an open market for ideas Offer an open market for capital Open up the market for talent Make like a cell: Divide and divide (“We haven’t been able to start new businesses within existing businesses”) Pay your innovators well – really well

14. Expected “Batting Average”? Intel’s venture fund: 275 investments, $8B Source: Fast Company, eCompany

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

16. The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M

17. Paradox Redux Atlanta: +113,600 = #1 metro area Layoffs [major]: BellSouth, Lockheed, Coca-Cola

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

19. 108 X 5 vs. 8 X 1* * 540 vs. 8

20. The Pincer 5 “Destructive” entrepreneurs/ Global Competition “White Collar Robots” THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler] Global Outsourcing [E.g.: India, Mexico] Speed!!

21. 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.”

22. The “&-!!+#$% in the middle”* Jim Clark on Healtheon/WebMD * ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael Lewis, The New New Thing

23. [ Incidentally … CEO Jeff Arnold Age: 30 First Start-up: Age 24]

24. “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

25. “A good plant engineer in a paper may create $100,000 to $300,000 in value per year. … An outstanding software product developer may create a product worth $1,000,000 to $300,000,000. … 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 (05.17.00)

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

27. So does Enron! [et al.]

28. “The e-conomy is one of re- intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change.” Thomas Koulopoulos, Delphi Group

29. Brand Inside Brand Work!

30. So what will be the Basic Building Block of the New Org?

31. Why are there no books on how to create a “Cool, Rocking, WOW-producing Finance Department”?

32. New Orleans April 2000: Jazz Festival + NAPM

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

34. You are the Rock Stars of the B2B Age!

35. Message: You are Re-invention Evangelists!

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

37. Enter … The WOW Project!* *The Project50

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

39. But Does It Matter ???? “On time, on budget … who cares?” anon. seminar participant (4/99)

40. “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)

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

42. Implementation: A Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” Michael Schrage

43. “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” Michael Schrage, Serious Play

44. Think about It!? Innovation = Reaction to the Prototype Michael Schrage

45. All-Time Prototype Champ THE SPREAD SHEET!

46. The new metabolism!

47. He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd

48. 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)

49. 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

50. 1) Turn ignition key. 2) Shift into drive. 3) Press foot firmly on the throat of mediocrity. Source: Mercedes ad

51. Brand Inside Brand You: Distinct … or Extinct

52. 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

53. “If one quarter can’t make the journey, that’s the way it has to be.” Carly Fiorina (1-00/Forbes)

54. “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 (05.17.00)

55. Seminar Y2K/Brand Inside Message: Distinct … or Extinct!

56. Brand Inside Brand Talent: The Great War for Talent

57. Issue Y2K The Great War for Talent!

58. “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH

59. “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/06.02.00]

60. Winner Take All! From “1, 2 or 3” [JW] to “Best talent in each industry segment to build better models and proprietary intangibles” [EM] Ed Michaels, War for Talent (05.17.00)

61. Home Depot Goes Long! 7 new growth initiatives ($20B to $100B in 5-7 years Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH INITIATIVE E.g.: COO of IKEA to head international expansion Ed Michaels, War for Talent (05.17.00)

62. “The Silent Battlefield” 50% of middle mgrs. In big corps. report “moderate to high” chance they’ll change companies within 3 years More loyalty to geography than companies Most companies: don’t know how many 25- 40 year olds they’re losing, have no special retention programs Ed Michaels, War for Talent (05.17.00)

63. Talent war, Web-speed! Every resume or employment question that comes to Lucent via the Web gets answered in 30 minutes or less. [24/7.] Red Herring [06.00], on Lucent Director of Recruitment Jim Baughman

64. “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

65. Why PWC [Etc.]? “We acquire and manage large stables of ‘Talent’ better.” PWC Exec

66. Alan Kay on PARC’s Bob Taylor “He was a connoisseur of talent.”

67. “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 (05.17.00)

68. “Where do good new ideas come from?... That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.” Nicholas Negroponte

69. H.R. to H.E.D. ??? Human Enablement Department

70. “Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” Tim Hall et al., “The New Protean Career Contract”

71. “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

72. “He grew his hair long, played guitar in a rock band, chased girls, got into trouble. At age 17 he was flogged by his house master, who described him as ‘the most difficult boy I’ve ever had to deal with.’ ”

73. Solution? Slip Ritalin into his food … Or …

74. Elect Him Prime Minister Tony Blair* *talk/May 2000

75. Axiom: Never hire anyone without an aberration in their background. (Find the One Ton Cookie Man!)

76. 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!

77. 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!

78. Talent = Brand

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

80. Forces @ Work II The Commodity Trap

81. Quality Not Enough! “Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.” J.D. Power

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

83. “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

84. “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

85. Brand Outside Strategy 1 : Lead the Customer!

86. “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

87. “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

88. “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

89. 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

90. Benchmarking, Perils of … “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.” Mark Twain

91. Amen! “The Age of the Never Satisfied Customer” Regis McKenna

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

93. ????? $35,000,000.

94. Dell’s Web sales … daily

95. 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)

96. And Larry?

97. Lessons from Earth’s Richest Human Everything [In & Out] via Internet $1B in ’99-’00 [on a cost base of $6B] $1B in ’00-’01

98. Service Call Center $300.00 per transaction to $1.50 Savings: $550,000,000.00 Source: Ralph Seferian, VP, Oracle

99. B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters 1-26-00) T

100. GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B) I.P.O.

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

102. The Supply Side … The Age of the Choiceboard The War of the Choiceboards Source: Adrian Slywotzky, HBR 1-2/2000 [<1%]

103. “Even if executives of established businesses grasp the impact of new technologies … they still face a massive competitive disadvantage precisely because they are incumbents. … They do complex financial calculations and get bogged down in internal political debates. Insurgents have no such inhibitions.” Philip Evans & Thomas Wurster, Blown to Bits

104. Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.

105. 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

106. Brand Outside Strategy 3 : Design Rules!

107. 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 Ogha

108. “Design is treated like a religion at BMW.” Fortune (10/98)

109. 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

110. Lady Sensor, Mach3, and … $70M on developing the CrossAction toothbrush 23 patents, including 6 for the packaging Source: www.ecompany.com [06.00]www.ecompany.com

111. “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

112. Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion

113. Design = SIMPLICITY … HONESTY … ACCESSIBILITY … ENJOYMENT Jonathan Ive (iMac)

114. Design = “There are three basic principles behind any well- designed product: truth, humanity, and simplicity.” Sohrab Vossoughi, Ziba Design

115. Brand Outside Strategy 4 : It’s the Experience!

116. “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

117. “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

118. 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

119. “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

120. Brand Outside BRAND POWER!

121. 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]

122. 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

123. “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

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

125. Brand Leadership Passion Rules!

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

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

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

129. “Leadership is a performance. You have to be conscious of your behavior, because everybody else is.” Carly Fiorina

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

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

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