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2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000
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When Mike Charles gets lonely, who does he talk to …
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Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2% milk. Tap keypad on door. Webvan.com delivers in hours. Next, he sends his washer an email … Source: Business Week (09.00)
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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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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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“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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“It used to be that the big ate the small. Now the fast eat the slow.” Geoff Yang, IVP/ (Institutional Venture Partners)
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Progressive “We don’t sell insurance anymore. We sell speed.” – Peter Lewis Digital cameras, wireless Net links, etc.: SOME CLAIMS PAID WITHIN 20 MINUTES! Source: Business Week (09.00)
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Tom Peters Seminar2000 Brand Everything : Distinct or Extinct!
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Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
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Brand Inside Brand Org: Lean, Linked, Electronic & Malleable
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Headline: “Bank of America to Cut … 10,000 Jobs” “Middle-level and senior managers are expected to be the principal targets of the job cutbacks.” Source: The New York Times (07.29.2000)
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White Collar Revolution!
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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” John Bryan, CEO, on selling all Sara Lee’s manufacturing
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Cisco, Dell = Brand-owning companies who sell Customer Satisfaction Source: David Schneider & Grady Means, MetaCapitalism
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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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Advance Paradigm Data on 165,000,000 prescriptions per year; docs and insurers have access to records Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save $14,000 per year in review time Rev in ’99: $2B; $477M in ’98 Source: Business Week (09.00)
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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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Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
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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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Measures –WOW! –Beauty! –Raving Fans! –Impact!
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Brand Inside Brand You: Distinct … or Extinct
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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 Rolodex Obsession (vert. to horiz. “loyalty”) Finishing Skills Entrepreneurial Instinct CEO/Leader/Businessperson Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal
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Invent. Reinvent. Repeat. Source: HP banner ad
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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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“Seller’s Market”: Tomorrow’s Headline* “Molecular biologists are up 3 points, economists down 1/4, in moderate trading” *futureWEALTH, Stan Davis and Christopher Meyer
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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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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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“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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“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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“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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“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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The Cracked Ones Let in the Light “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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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 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
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“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
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“Boys are trained in a way that will make them irrelevant.” Phil Slater
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“Tomorrow belongs to women.” Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World
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Mantra2000 Talent = Brand
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Brand Inside Brand Action: Getting Started … a Personal Perspective
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Topic: Boss-free Implementation of STM /Stuff That MATTERS!
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THE IDEA “4Fs”: F ind a F ellow F reak F araway
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Heart of the Matter F2F!* *Freak to Freak … or K2K [Kook to Kook]
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World’s Biggest Waste … Selling “Up”
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BOTTOM LINE The Enemy!
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Epitaph from Hell … Joe T. Jones 1942 - 2000 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
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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”
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N.W.O.: Was-Is 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, UA233 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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Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
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Brand Outside The Death Knell for Ordinary: Pursuing Difference!
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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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Brand Outside Strategy 1 : Lead the Customer!
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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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“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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Brand Outside Strategy 2 : Use E-Commerce to Re-invent Everything!
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OVERVIEW
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www.cyveillance.com 08.30.2000/1221AM: 2,461,940,629
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www.cyveillance.com 10.15.2000/0217AM: 2,797,588,916
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46 days, 1 hour, 56 minutes … +335,648,287
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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% Savings in service and support from customer self-management: $500M
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COMMUNITY SERVICES!/ CUSTOMER CONTROL!
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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)
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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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Shop in your Underwear Source: SM’d logo for www.ae.com ae = American Eagle Outfitters
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RADICAL STRATEGIES REQUIRED
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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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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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Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.
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Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.
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A DREAMER’S MEDIUM!
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“There is no use trying,” said Alice. “One can’t believe impossible things.” “I daresay 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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I’net … … allows you to dream dreams you could never have imagined before!
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Brand Outside Strategy 3 : Fighting Back via Systems Integration!
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THE CASE
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GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B) I.P.O.
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Goal? Drive profits to zero!* *Remember AMR and “dynamic pricing.”
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Message: “BOX” SELLERS LOSE!
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THE RESPONSE
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Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
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09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting bus! (31,000 bods)
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“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett Packard
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“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
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E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”
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Brand Outside Strategy 4 : Design Matters!
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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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“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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Lady Sensor, Mach3, and … $70M on developing the OralB CrossAction toothbrush 23 patents, including 6 for the packaging Source: www.ecompany.com [06.00]www.ecompany.com
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TARGET … “the champion of America’s new design democracy” (Time)
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Design “is” … WHAT & WHY I LOVE. LOVE.
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Design “is” … WHY I GET MAD. MAD.
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Design is never neutral.
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B-I-G … hypothesis: DESIGN is the principal difference between love and hate!
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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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Plot Williams Sonoma = 6 [was 10] Crate & Barrel = 8 Sharper Image = 9+ Smith & Hawken = 8+ Vermont Country Store = 8+ Garnet Hill = 9 L.L. Bean = 5 [was 9+] Land’s End = 7+ Colonial Williamsburg = ?
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Brand Outside Strategy 6 : Women Rule!
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????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 80% Consumer Electronics … 51% Cars … 50%+/80% Etc.
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Women … 50+% (!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week; Jupiter Communications
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$4.8T > Japan 9M/27.5M/$3.6T > Germany
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Yeow! 1970 … 1% 2002 … 50%
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OPPORTUNITY NO. 1!
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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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“Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. … For a man, ignoring the price tag is almost a sign of virility.” Paco Underhill, Why We Buy* (*Buy this book!)
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Marketing to Women: Help Them Save Time! 80% … work 86% … cook 58% … run errands with kids 38% … take child to school 21% … go to the gym 21% … take outside classes
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Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold
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EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand
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“The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution
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Weight Watchers International “Model” “What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?” “What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills?” EVEolution
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“Women don’t buy brands. They join them.” Faith Popcorn, EVEolution Faith Popcorn
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Enterprise Reinvention! Recruiting Hiring/Rewarding/ Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF!
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“Honey, are you sure you have the kind of money it takes to be looking at a car like this?”
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“Excuse me, doctor, but it’s my neck that’s in pain!”
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THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS SEMINAR. [PLEASE: THINK ABOUT IT!]
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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
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Speaking of Enormous [Missed] [Huge] Opportunities...
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Subject: Marketers & Stupidity It’s 18-44, stupid!
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Subject: Marketers & Stupidity Or is it: 18-44 is stupid, stupid!
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2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)
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Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”
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Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access … Respect!
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“Such a critical mass of older women with a tradition of rebellion and independence and a way of making a living has not occurred before in history.” Gerda Lerner, historian
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Brand Outside Strategy 7 : 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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“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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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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Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander
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