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Tom Peters SeminarM3 Rollercoaster Days: Learning to …Rock & Roll! IMRA/Logistics2001 Orlando 01.09.01.

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Presentation on theme: "Tom Peters SeminarM3 Rollercoaster Days: Learning to …Rock & Roll! IMRA/Logistics2001 Orlando 01.09.01."— Presentation transcript:

1 Tom Peters SeminarM3 Rollercoaster Days: Learning to …Rock & Roll! IMRA/Logistics2001 Orlando 01.09.01

2 “There will be more confusion in the the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case

3 “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0 (08.00)

4 Zounds: Bradlees. Wards. Sears/89. Same-store Xmas sales. Olds. Cherokee. CEOs @ P&G, Coca Cola, Gillette, Xerox, Lucent, Aetna, Mattel, Chrysler USA, Home Depot (sorta). AT&T Breakup III. NASDAQ.

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

6 Brand Inside Brand Org: Lean, Linked, Electronic & Malleable

7 90% Doomed White Collar Revolution!

8 New Orleans April 2000: NAPM

9 You are the … Rock Stars of the B2B Age!

10 Brand Inside Brand Talent: The Great War for Talent

11 “We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, Enron

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

13 “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)

14 So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager, $3-4M per year. Pay: $135,000 plus $90,000. Net: $2-3M for $50K. Source: Ed Michaels et al., The War for Talent, re Georgia Pacific

15 Women in the ’00s: Born to Lead!

16 “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts on almost every measure” Title, Special Report, Business Week, 11.20.00

17 “On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty- first-century economic community are going to need the natural talents of women. Helen Fisher, The First Sex: The Natural Talents of Women and How They are Changing the World

18 Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic

19 “Boys are trained in a way that will make them irrelevant.” Phil Slater

20 Brand Inside Reprise: THINK WEIRD: The High Standard Deviation Enterprise

21 Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual Pioneer [Weird] Acquisitions Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index] Divide & Conquer/“Sell-by” Pioneer Assignments/Pioneer Projects/Pioneer Partners Hire Weird [Diversity] /Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board Weed Un-weird [“One Sigma” “Talent,” etc.] Hang out with Weird [Univ. of Weird] /Lunch with Weird/ Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F. Sense of Humor [Rhapsodize Over Thine Cool Failures!] Re-enforce a “Culture of Disrespect”/Passionate Piracy

22 Saviors-in-Waiting Disgruntled Customers Fringe Competitors Rogue Employees Edge Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

23 “There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.” Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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

25 Forces @ Work II The Commodity Trap

26 “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 Businessrosecr

27 Brand Outside Strategy 1 : Use E-Commerce to Re-invent Everything!

28 Tomorrow Today: Cisco! 90% of $20B (=$50M/day) 75% mfg. outsourced; 50% of orders routed to supplier who ships direct Gross margin:65%; Net margin: 28% Annual savings in service and support from customer self-management: $550M

29 Enron eWorld: 30 times a day (“price a structured trade”/early 1999, per John Arnold, 26); late 2000: 30 times per … minute. Long-term gas contract, 1989: 9 months, 400+ deals; late 90s: 2 weeks, 2 per week; late 2000: 5 such deals per day Source: www.ecompany.com (1-2/2001)www.ecompany.com

30 Tomorrow Today: Cisco! 90% of $20B; save $550M C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

31 SUMMARY: REINVENT EVERYTHING

32 “Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch

33 “We’ve put the word out to all of our suppliers: by the end of the year [2000] we’ll only do purchasing over the Internet.” John Paterson, C.P.O., IBM [$50B from 18,000 suppliers]

34 WebWorld = Everything Web as a way to run your business’ innards Web as connector for your entire supply-demand chain Web as “spider’s 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 World’s Best at Everything as next door neighbor

35 Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

36 Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.

37 “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. … “In a true ebusiness, customers can come to your Website and evaluate products, be connected to the supply chain to get commitment for delivery and pricing. It also includes all the tangential services like billing and customer service, which should be automatic and simultaneous.” Ray Lane, Kleiner Perkins

38 Brand Outside Strategy 2 : Design Matters!

39 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

40 Design Transforms Even the [Biggest] Corporations! TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

41 Design “is” … WHAT & WHY I LOVE. LOVE.

42 Design “is” … WHY I GET MAD. MAD.

43 Design is never neutral.

44 Hypothesis: DESIGN is the principal difference between love and hate!

45 THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what I love and I hate what I hate. [Openly.] But it goes [much] further, far beyond the personal. Design has become a professional obsession. I - SIMPLY – BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 determinant of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s “one of those things” … that damn few companies put – consistently – on the front burner.

46 Brand Outside Strategy 2A : It’s the Experience!

47 “ 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

48 “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

49 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

50 “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

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

52 Plot Williams Sonoma = 5 [was 10] Crate & Barrel = 8 Sharper Image = 9+ Smith & Hawken = 8+ Garnet Hill = 9 L.L. Bean = 4 [was 9+] Colonial Williamsburg = ?

53 Brand Outside Strategy 3 : Women Rule!

54 ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80%

55 $4.8T > Japan 9M/27.5M/$3.6T > Germany

56 OPPORTUNITY NO. 1!

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

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

59 “Women don’t buy brands. They join them.” Faith Popcorn, EVEolution

60 STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that women’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters

61 27 March 2000: email to TP from Shelley Rae Norbeck “I make 1/3 rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

62 Speaking of Enormous [Missed] [Huge] Opportunities...

63 Subject: Marketers & Stupidity It’s 18-44, stupid!

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

65 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

66 Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

67 Brand Outside Strategy 4 : BRAND POWER!

68 “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

69 “Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.]

70 “Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.” Jesper Kunde, A Unique Moment

71 “WHO ARE YOU [these days] ?” TP to Client/11-2000

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

73 Brand Leadership Passion Rules!

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

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

76 Message 2001 Mastering Madness! Best Talent Wins! eBusEx = Reinvention! Women Rule! Value Proposition: Who Are We?


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