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Distinct or … Extinct Tom Peters Seminar2000 HSM Sao Paulo 24 August 2000
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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)
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No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
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“There’s going to be a fundamental change in the global economy unlike anything we have had since the cavemen began bartering.” Arnold Baker, Chief Economist, Sandia National Laboratories
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NOW THAT’S B-I-G! “The period 2000-2002 will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.” David Schneider & Grady Means, MetaCapitalism
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“There is probably going to be more confusion in the business world in the next decade than there has been in any decade in history.” Steve Case (2-00)
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“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)
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“We are in a brawl with no rules.” Paul Allaire
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John Roth’s “Rules” [Nortel] 1. Our strategies must be tied to leading-edge customers on the attack. 2. Time cannot be sacrificed for better quality, lower cost, or even better decisions. 3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology and products our customers need. 4. Success is achieved by leading change, not waiting for it. 5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge. Source: Abridged from The Wall Street Journal (07.25.00)
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Tom Peters Seminar2000 Brand Everything : Distinct or Extinct!
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Structure Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
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Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
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Forces @ Work I The Destruction Imperative!
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Forget > Learn “The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.” Dee Hock
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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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The [New] G e Way DYB.com
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The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
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Brand Inside Brand Org: Lean, Linked, Electronic & Malleable
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White Collar Revolution!
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108 X 5 vs. 8 X 1* * 540 vs. 8
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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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“Assetless Company” J.B.
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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.”
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Cisco, Dell = Brand-owning companies who sell Customer Satisfaction Source: David Schneider & Grady Means, MetaCapitalism
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Brand Inside Brand Work: The Professional Service Firm Model & The WOW Project
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So what will be the Basic Building Block of the New Org?
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Chicago November 1999: SHRM
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Message: You are Rock Stars of the “Age of Talent”
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New Orleans April 2000: NAPM
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Message: You are Re-invention Evangelists!
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“PSF” Model Department Head to … Managing Partner, HR [IS, etc.] Inc.
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Credo “WORK WORTH PAYING FOR”
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Every job done in W.C.W. is also done “outside” … for profit!
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The Raw Material … The WOW Project!
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“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
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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
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Characteristics of the “Also Rans” “minimize risk” “respect the chain of command” “support the boss” “make budget” Source: Fortune’s “most admired global corporations”
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Brand Inside Brand You: Distinct … or Extinct
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“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.” Thomas Malone and Robert Laubacher
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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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Minimum New Work SurvivalSkillsKit2000 Mastery Networking Obsession Finishing Skills Entrepreneurial Instinct Master of Improvisation Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal
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Seminar Y2K/Brand Inside Message: Distinct … or Extinct!
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Brand Inside Brand Talent: The Great War for Talent
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“When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH
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“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]
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Obsession! Greatness! Performance! Pay! Youth! Diversity! Women! Weird! Opportunity! Leading Genius!
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1. Obsession! 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 (05.17.00)
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GE Is a “Talent Machine” “In most companies the talent review process is a farce. At GE, Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The talent review process is a contact sport. It has the intensity and the importance of the budget process at most companies.” Ed Michaels, War for Talent (05.17.00)
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2. Greatness! Home Depot: 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)
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3. Performance! “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)
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4. Pay! “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)
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5. Youth! “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
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“A good plant engineer in a paper mill may create $100K to $300K in value per year. An outstanding software product developer may create a product worth $1M to $300M. 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)
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6. Diversity! “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
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“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
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7. Women! Women and new- economy management …
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The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!
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Women’s Strengths = 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
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8. Weird! “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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What Do We Do With Him? “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.’ ”
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Elect Him Prime Minister Tony Blair* *talk/May 2000
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9. Opportunity! “H.R.” to “H.E.D.” ??? Human Enablement Department
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“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”
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10. Leading Genius & The Creative Arts: Acquisition & Development of Talent = All Ballet Symphony Theater Sports Combat
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Housekeeping Dept. (Finance Dept., etc.) = Theater Company
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44 Players = 44 Projects = 44 different success measures = 44 different styles (of you) Short term-Long term One [if lucky] “1 in 10 years” [Scout: Great career = 1 sleeper find]
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Talent = Brand
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Reprise: Brand Inside The White Collar Revolution & The Web [Destruction Rules!] PSF as Building Block [Work Worth Paying For] Work Worth Paying For = WOW Projects! Brand You [Everybody!] The Great War for Talent!
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N.W.O. I CEO, $14 Billion Corp.: 80+% on the road; “ ‘Corporate’ ‘Head’quarters is in my head and on my laptop, wherever I happen to be.”
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N.W.O. II Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (“Failures are for fools.”) I love “Yes men” Self-contained Seat 9b, Varig 233 Address: Rick@Corp.com Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners
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Translation Flexible Fluid Fast Informal Talent obsessed Alliance obsessed Entrepreneurial Intellectual
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Addenda 21 August 2000 Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the Coming Century
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Hong Kong: Prototypical “Virtual State” 83% Service 8% Mfg. Source: Richard Rosecrance, The Rise of the Virtual State
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“The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – a company with a head but no body.” Richard Rosecrance, The Rise of the Virtual State
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“We own all the intellectual property, we farm out all the direct labor.” Jim McDonnell, VP, IBM
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“The Futility of Size … [Regarding this issue] the new process of virtualization fully exerts itself. Virtualization is the recognition that territorial size does not solve economic problems. … Economic access must become the substitute for economic domain.” Richard Rosecrance, The Rise of the Virtual State
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TP: Skill at creating, exploiting, and exiting crucial alliances beats ownership of fixed assets.
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“At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.” Richard Rosecrance, The Rise of the Virtual State
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And the Question … $70,000
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“Elementary and high school teachers should be rewarded as patient creators of high-value capital in the United States and elsewhere.” Richard Rosecrance, The Rise of the Virtual State
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“Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” Peter Drucker, Business 2.0 (22August2000)
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Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Forces @ Work II The Commodity Trap
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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, 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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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 1 : Lead the Customer!
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“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
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Message … Biggest is not always [often?] most beautiful! F2F Rules: How’s your “freaks” portfolio?
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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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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 2 : Use E-Commerce to Re-invent Everything!
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OVERVIEW
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www.cyveillance.com 08.18.2000/0511AM: 2,380,854,946
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www.cyveillance.com 08.24.2000/0456AM: 2,423,981,327
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143 Hours, 45 Minutes … +43,126,381
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Tomorrow Today: Cisco! 87% of $20B* (Cisco Connection ONLINE) Save $500M (service and tech support) * = $48,000,000 … per DAY
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Oracle Everything [In & Out] via Internet $1B in ’99-’00 [on a cost base of $6B] $1B more in ’00-’01
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Service Call Center $300.00 per transaction to $1.50 Savings: $550,000,000.00 Source: Ralph Seferian, Oracle
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COMMUNITY!/ COMMUNITY SERVICES!
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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)
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B2C Success “Genuine brand strength” “Build community” Source: Geoffrey Moore
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CUSTOMER PERSPECTIVE: D.I.Y./ CONTROL
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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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Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”
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Amen! “The Age of the Never Satisfied Customer” Regis McKenna
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“The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business
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“In the network economy, the Website becomes the company’s primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post- sales support all rolled into one.” Jakob Nielsen, Designing Web Usability
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RADICAL STRATEGIES REQUIRED
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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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[ GE Power Systems/GEPartsEdge Was: 2 weeks to analyze a major generator problem Is: 1 hour]
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There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!
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“One cannot be tentative about this. Excuses like ‘channel conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24 months ago.” Jack Welch [07.00/Forbes.com]
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ACT NOW, ACT FAST, KEEP ACTING
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“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
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SUMMARY: REINVENT EVERYTHING
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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
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“There is no use trying,” said Alice. “One can’t believe impossible things.” “I dare say you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.” Lewis Carroll
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The Web … A DREAMER’S MEDIUM!
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I’net … … allows you to dream dreams you could never have imagined before!
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“Banking is necessary. Banks are not.” Dick Kovacevich, Norwest/ Wells
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 3 : Fighting Back via Systems Integration!
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THE CASE
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B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters 1-26-00) T
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GM/Ford/DaimlerChrysler (02-25) Covisint $240B (+$500B) I.P.O.
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Solectron, IBM, Nortel, Matsushita, Seagate, Etc. E2Open.com $700 B
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Goal? Drive profits to zero!* *Remember AMR and “dynamic pricing.”
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THE RESPONSE
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Message: Do More & More & More & More & More … for/with the Customer and the Supply-Demand Chain!
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“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
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“Systems Integrators” Unite [And Conquer] Cisco’s winning strategy [USAToday 07.11]: “Become the ‘Go-to’ Systems Provider”
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“Customer Satisfaction” to “Customer Success” “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?” Bob Nardelli, GE Power Systems
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GE’s New Six Sigma Approach Old view: Out of service 9 days. 4 days are transport, which is client responsibility. New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days = Client’s World. Source: Steve Kerr, VP, GE
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Defense-Offense: Systems Integration/HVA Delphi, Dana United Technologies, Corning, GE, Sun, Carpet One, Bud … [Anybody in their right mind!]
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E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”; P&W, etc.: boxes to major aircraft subsystems
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“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
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 4 : Design Matters!
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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 Ogha
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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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Message: “Great - Cool Stuff” Matters. Great & Cool Trumps Not-So-Great & Ho Hum!
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Message iMac: “Great Stuff” Takes Guts!!
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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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 Theater & Every Business a Stage
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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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“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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So …. WHAT’S THE [your] STORY/PLOT?
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“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct. Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a rolling wireless portal on wheels, connecting you to your kitchen, your bank, your kids, your office.” Business 2.0, “Four Wheel Drive,” 08.22.00
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 6 : Women Rule!
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$4.8T > Japan 9/27.5/3.6T > Germany
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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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????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.
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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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Yeow! 1970 … 1% 2002 … 50%
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OPPORTUNITY NO. 1!
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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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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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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!”
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 7 : Embracing an Age of Self-Determination
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The Individual
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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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The Work
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Enter … The WOW Project!* *The Project50
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Credo “WORK WORTH PAYING FOR”
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The Organization: [Talent] Seller’s Market
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“A good plant engineer in a paper mill may create $100K to $300K in value per year. An outstanding software product developer may create a product worth $1M to $300M. 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)
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The Market: Fighting Sameness with Distinction
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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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Web World: POWER TO THE PEOPLE
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Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”
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Amen! “The Age of the Never Satisfied Customer” Regis McKenna
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I’net Freedom Manifesto I AM IN CHARGE HERE! I CAN DO WHATEVER I NEED OR WANT TO DO WHENEVER I WANT TO DO IT!
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Women Get Respect … and Take Charge
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$4.8T > Japan 9/27.5/3.6T > Germany
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The Poor Get Respect
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Grameen Bank/Bangladesh “It’s not people who aren’t credit- worthy. It’s banks that aren’t people worthy.” $2.3B to 2.3M [typical 1 st loan: $15.] 98% recovery rate [94% to women] 1/3 rd out of poverty; 1/3 rd up to non- poverty threshold Muhammad Yunus, Banker to the Poor
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“The Grameen loan is not simply cash. It becomes a kind of ticket to self-discovery and self-exploration.” Muhammad Yunus
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Self-Determination & Empowerment: Dealing in Hope
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“A leader is a dealer in hope.” Napoleon
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Sooooo … Is your strategy centered around customer-client empowerment & self- determination? Hint: This means letting go of traditional sources of power!
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 8 : Think Global!
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THE EIGHT “RULES”
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Rule #1 If “it” is [truly] good … then it’s good enough for … THE WORLD.
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Rule #2 There’s no such thing as “too small to be global.”
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Rule # 3 When? Now.
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Rule #4 Hang out … vigorously!
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Rule #5 Seek Talent! Send Talent!
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Rule #6 Find a [modest- sized] partner … who loves/ “gets” you!
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Rule #7 Tailor!! [But don’t give away the store.]
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Rule #8 You will not [likely] “get it right the first time”!
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Brand Outside Strategy 9 & Summary: 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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Scott Bedbury/ Nike, Starbucks “A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product.” “A Great Brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep - a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.”
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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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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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Branding; Call the Corporate Shrink! “Organizational Psychotherapy”/ WHO WE ARE!
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Brand Outside Reprise
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Context: “No” to “inevitable commoditization” S1: Lead the Customer! S2: Re-invent with E-Commerce! S3: Fighting Back via Systems integration! S4: Design Matters! S5: It’s the Experience! S6: Women Rule! S7: Embracing an Age of Self-Determination! S8: Think Global! S9: Brand Power & Summary!
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Lead the Customer: Why Tough Guts! Failures!
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Re-invention via ecommerce: Why Tough Total commitment to total enterprise [and supply chain] reinvention! DYB.com
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Systems Integration: Why Tough Completely new view of what a “product” is.
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Design: Why Tough True-believer-dom-ship Encompassing/Cultural
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Experience: Why Tough Total Reorientation
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Women’s Market: Why Tough Encompassing Attitude CULTURAL!
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Self-Determination: Why Tough Cede Control
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Going Global: Why Tough Attitude! Patience!
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Brand Power: Why Tough Way of Life Forever! Passion Rules! Touches Everything! It Am Me [Personal!]
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Message : Not for the Faint of Heart!
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Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
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Brand Leadership Passion Rules!
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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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“Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re- inventing a company (Exemplar #1: Charles Schwab)
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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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Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander
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