Six Ideas Tom Peters Omnicom 02 28 02

Six Ideas Tom Peters Omnicom 02. 28. 02

1. Women

Women = Leaders

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

“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

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week, 11. 20. 00

The New Economy … Shout goodbye to “command control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity Source: Judy B. Rosener, America’s Competitive Secret

“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

“Investors are looking more and more for a relationship with their financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men. ” Hardwick Simmons, CEO, Prudential Securities

It’s Girls, Stupid! 1996: 8. 4 M women, 6. 7 M men in college (est: 9. 2 to 6. 9 in 2007); more women than men in high-level math and science courses More girls in student govt. , honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbers Boys do rule: crime, alcohol, drugs, failure to do homework (4: 1) Source: The Atlantic Monthly (May 2000)

Okay, you think I’ve gone tooooo far. DO ANY OF YOU SUFFER FROM TOO MUCH TALENT? How about this:

63 of 2, 500 top earners in F 500 8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med faculty; 7% deans Source: Susan Estrich, Sex and Power

Opportunity! M. Mgt. T. Mgt. Peak Partic. Age % Coll. Stud. U. S. G. B. E. U. Ja. 41% 29% 18% 6% 4% 3% 2% <1% 45 22 27 19 52% 50% 48% 26% Source: Judy Rosener, America’s Competitive Secret

Encouraging signs: CEO, HP. CEO, e. Bay. CEO, Avon. CEO, Mirant. CEO, Xerox. President, Pharmaceutical Group, Pfizer. President, Chevron Products. Co. CEO, Kraft. President, Pepsi. Co. CEO, Ogilvy & Mather. COO, Enron Americas. COO, Colgate-Palmolive. President, Southwest Airlines.

Message S. Estrich: Re -invent the Culture!

S. Estrich: The Magic Number 3! [Partners, Tenured Profs, Directors]

“Deloitte was doing a great job of hiring highperforming women; in fact, women often earned higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s maledominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions. ” Douglas Mc. Cracken, “Winning the Talent War for Women” [HBR]

“The process of assigning plum accounts was largely unexamined. … Male partners made assumptions: ‘I wouldn’t put her on that kind of company because it’s a tough manufacturing environment. ’ ‘That client is difficult to deal with. ’ ‘Travel puts too much pressure on women. ’ ” Douglas Mc. Cracken, “Winning the Talent War for Women” [HBR]

Mantra. M 3 Talent = Brand

What’s your company’s … EVP? Employee Value Proposition, per Ed Michaels et al. , The War for Talent

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al. , The War for Talent

Women = The Market

Women & the Marketspace.

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

? ? 80%

Riding Lawnmowers

2/3 rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500 K 95% financial decisions/ 29% single handed

$4. 8 T > Japan 9 M/27. 5 M/$3. 6 T > Germany

New golfers … 37% Basketball … 13. 5 M 1 in 27 (’ 70) … 1 in 3 (’ 96)

1874?

1874 … Jock Strap 1977 … Jogbra 1977. . . 25 K 1996 … 42 M

Yeow! 1970 … 1% 2002 … 50%

OPPORTUNITY NO. 1!* [* No shit!]

Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

Female. Think/ 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. ”

“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!)

Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men. ” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house. ” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers. ” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. They are excellent at imitating animal sounds. ” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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

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

“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

“Women don’t buy brands. They join them. ” EVEolution

What If … “What if Exxon. Mobil 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

Not!! “Year of the Woman”

Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF!

“Honey, are you sure you have the kind of money it takes to be looking at a car like this? ”

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!”

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 Alto resident … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters

Psssst! Wanna see my “porn” collection?

“If we are single, they say we couldn’t catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. If we are widowed, they say we killed him. ” Kathleen Brown, on the joys of female political candidacy

Stupid!

Ad from Furniture /Today (04. 01): “MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way” Presenting Experts: M = F= ? ? 16; (94% = 272)

0

The Furniture Industry … doesn’t understand BRANDING doesn’t understand FASHION doesn’t understand WOMEN doesn’t understand SPEED & RESPONSIVENESS & VALUE-ADDED SERVICES doesn’t understand EXCITING RETAIL PRESENTATION & “EXPERIENCE” MARKETING. And is run by old, conservative white guys … who don’t even understand what they don’t understand.

Prescription … SHE is the Consumer. (PERIOD. ) SHE is the Brand. (PERIOD. ) 75% women designers* (*Men CANNOT design for women. PERIOD. ) 75% women reps. “Cool” retail spaces in high-rent districts (a la Ethan Allen). Match furniture with accessories … i. e. , create an “experience. ” FOCUS ON “RELATIONSHIPS-FOR-LIFE”, not “transactions. ”

Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors--sitting around designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

Whose pelvis is it, anyway?

Stupid: Nike. The “pelvis pics. ” Research in h. care. Georgene Terry’s “finding. ” Etc.

Harmony. From General Mills. Low-fat cereal fortified with calcium, folic acid and iron. “Breakfast of Heroines” Source: Business Week’s “The Best Products of 2001”

“The corporate faith in big industrial mergers is a vestige of the spatsand-spittoons era. ” [2/3 rds of which fail] —James Suroweicki, The New Yorker (More, a Buffett annual-report quote: “Many managers were overexposed in impressionable childhood years to the story in which the imprisoned handsome prince is released from a toad’s body by a kiss from the beautiful princess. ”)

2. Old World/ Boomer World

“ ‘Age Power’ will st 21 rule the century, and we are woefully unprepared. ” Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old

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

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

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

“NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same? ” USN&WR Cover/06. 01

Member Growth: 1987 – 1997 18 – 34: 26% 35 – 49: 63% 50+: 118% Source: IHRSA

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

50+ $7 T wealth (70%)/$2 T annual income 50% all discretionary spending 79% own homes/40 M credit card users 41% new cars/48% luxury $610 B healthcare spending/74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old

Stupid!

No: “Target Marketing” Yes: “Target Innovation” & “Target Delivery Systems”

3. Brands

“WHO ARE YOU [these days] ? ” TP to Client

“Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voilà, 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

“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 Companies will thrive on the basis of their stories and myths. Companies will need to understand how we work with others. that their products are less important than their stories. ” Rolf Jensen, Copenhagen Institute for Future Studies

“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25 words. ) (2) List three ways in which we are UNIQUE … to our Clients. (3) Who are THEY (competitors)? (ID, 25 words. ) (4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Try ’em on a skeptical Client!

1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing. ” Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) RD 3 Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide. ) Source: Jump Start Your Business Brain, Doug Hall

2 Questions: “How likely are you to purchase this new product or service? ” (95% to 100% weighting by execs) “How unique is this new product or service? ” (0% to 5%*) *No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

Message: “Branding” is B. S. longterm if the product is not supercalifragilisticexpealidocious (e. g. , see sections on Design & Experience above)

The Heart of Branding …

“WHO ARE WE? ”

WHAT’S OUR STORY?

DO THE HOUSEKEEPERS & CLERKS “BUY IT”? [ARE YOU V-E-R-Y SURE? ]

“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT? ”

“ WHY DOES IT MATTER TO THE CLIENT? ”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ”

4. Design

What is it?

Unconventional [Design] Messages Not about. . . “Lumpy Objects”! Not about. . . $79, 000 objects

The I. D. [International Design] Forty* Airstream … Alfred A. Knopf … Apple Computer … Amazon. com … Bloomberg … Caterpillar … CNN … Disney … Fed. Ex … Gillette … IBM … Martha Stewart … New Balance … Nickelodeon … Patagonia … The New York Yankees … 3 M … Etc. * List No. 1, 1999

Unconventional [Design] Messages Not about. . . “Lumpy Objects”! Not about. . . $79, 000 objects

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

Lady Sensor, Mach 3, and … $70 M on developing the Oral. B Cross. Action toothbrush 23 patents, including 6 for the packaging Source: www. ecompany. com [06. 00]

Packaging Power: From Quaker Listerine Pocket. Paks Oats to …

Packaging, Power of … 1870: animal feed. 1890: “A delicacy for the epicure, a nutritious dainty for the invalid, a delight to the children” Source: Thomas Hine, The Total Package: The Evolution and Secret Meanings of Bottles, Boxes, Cans and Tubes (on Quaker Oats)

“Packages are about containing and labeling and informing and celebrating. They are about power and flattery and trying to win people’s trust. They are about beauty and craftsmanship and comfort. They are about color, protection, survival. ” – Thomas Hine, The Total Package

“During the 30 minutes you spend on an average trip to the supermarket, about 30, 000 different products vie to win your attention and ultimately to make you believe in their promise. When the door opens, automatically, before you, you enter an arena where your emotions and your appetites are in play, and a walk down the aisle is an exercise in self definition. Are you a good parent, a good provider? … do you care about the environment? Do you appreciate the finer things in life? Are you enjoying what you’ve accomplished? ” –Thomas Hine, The Total Package

Bottom Line.

Design “is” … WHAT & WHY I LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I GET MAD.

Wanted: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!

“I’m just going to come right out and say it: Ericsson lost $2. 3 B on mobile phone because its products are ugly. ” handsets last year Peter Martin (FT 04. 24. 01)

Design is never neutral.

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

THE BASE CASE: I am a design fanatic. Though not “artistic, ” I love “cool stuff. ” 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 another “one of those things” that damn few companies put – consistently – on the front burner.

Design’s place in the universe.

And Tomorrow … “Fifteen years ago companies competed on price. Now it’s Tomorrow it’s design. ” quality. Robert Hayes

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only thing that differentiates one product from another in the marketplace. ” features. Norio Ohga

“Design is treated like a religion at BMW. ” Fortune

“The new Beetle fails at most categories. The only thing it doesn’t fail in is drop-dead charm. ” Jerry Hirshberg, Nissan Design International

Object of Desire! “Every now and then, a design comes along that radically changes the way we think about a particular object. Case in point: the i. Mac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at. ” Katherine Mc. Coy & Michael Mc. Coy, Illinois Institute of Technology

“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 Design is the fundamental soul meaning of design. of a man-made creation. ” Steve Jobs

“The good 10 percent of American product design comes out of big-idea companies that don’t believe in talking to the customer. They're run by passionate maniacs who make everybody’s life miserable until they get what they want. ” Bran Ferren, Applied Minds/Wired 1 -2001

Check Out the Language: “Tomorrow it’s design …” “Design is the only thing …” “Design is … religion. . . ” “Drop-dead charm …” “Object of desire …” “Fundamental soul …” “Passionate maniacs …”

Philippe Starck

“Today the problem is not how to produce more to sell more. The fundamental question is that of the product’s right to exist. And it is the designer’s right and duty to question the legitimacy of the product. ” Philippe Starck

“[At Thompson] I outlawed the word ‘consumer’ in all company meetings, and insisted it be replaced by the words ‘my friend, ’ ‘my wife, ‘my daughter, ’ ‘my mother, ’ or ‘myself. ’ It doesn’t sound the same at all, if you say: ‘It doesn’t matter, it’s shit, but the consumers will make do with it, ’ or if you start over again and say, ‘It’s shit, but it doesn’t matter, my daughter will make do with it. ’ All of a sudden, you can’t get away with it anymore. There is an enormous task to be done with this kind of symbolic repositioning. ” Philippe Starck

“Today, 80 per cent of objects are unnecessarily macho. Yet it is plain: The intelligence of a truly modern society must be feminine. … Apart from a machine pistol, I can’t think of many objects which actually need to be extravagantly masculine. ” Philippe Starck

Message (? ? ? ): Men cannot design for women’s needs.

“The only house with a secondfloor laundry was designed by a woman. ” Architect to TP:

Message: Design is the wellspring of branding. Great design takes guts and is “soul deep. ”

T. T. D. /Design “Awareness”! STEP No. 1: NOTEBOOK! [Start recording the awesome and the awful. ]

Compare 10 order forms or data fields at a Web site. Save great and awful junk mail. Go on a <$10 shopping spree. Pay attention to signage. (And instruction manuals. ) Start a notebook. NOW.

Design-Minded Company: Credo Design matters! Everywhere! The Brand Promise rules! Everywhere! All can answer: WHO ARE WE? HOW ARE WE DISTINCT? Words such as beauty & grace & emotion & connection & Wow & adventure are okay ’twixt 9 and 5. Non-Wow doesn’t cut it. Anywhere! We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis on the arts, is part of this. Diversity-R-Us!

Design-Minded Company: Operating Philosophy All work is the product of Hot Teams of peers. Hierarchy is minimal, and usually a distraction. We understand that “disrespect” is the ultimate in respect in crazy times. The Work Matters! Wow … or bust! All work reflects design-mindfulness & the brand promise. Promotion comes immediately if the work is Wow. NO BULLSHIT. We keep our word to our teammates and other partners. Integrity = No. 1 outcropping of design-mindfulness. We are a business. Results matter!

5. Weird

The High Standard Deviation Enterprise. THINK WEIRD:

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

CUSTOMERS: “Futuredefining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. ” Adrian Slywotzky, Mercer Consultants

COMPETITORS: “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

Employees: “Are there enough weird people in the lab these days? ” V. Chmn. , pharmaceutical house, to a lab director (06. 01)

Suppliers: 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

Tomorrow’s Organizations: Itinerant Potential Machines.

TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to “make their bones” in “the revolution. ”Love the new technologies. Well rewarded. Don’t plan to be around 10 years from now.

TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often needed). “We aim to change the world, and we need gifted colleagues—who well may not be on our payroll. ”

BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENT —but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180 degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS AND PROJECTS.

BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont. ) “Visionary” leaders matched by leaders with shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA? ” Appreciate “market creation” as much as or more than “market share growth. ” ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. Mc. Nealy. Walton. Case. Etc. )

ALLIANCE MANIACS. Don’t assume that “the best resides within. ” WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER. Including vendors and consultants and … especially … PIONEERING CUSTOMERS … who will “pull us into the future. ”

TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share this (radical) vision.

POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge -overturn our own “way of doing things. ”

“ WHY DOES IT MATTER TO THE CLIENT? ”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ”

6. Solutions

Animating Force: The Sameness Trap

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

“While everything may it is also increasingly the same. ” be better, Paul Goldberger on retail, “The Sameness of Things, ” The New York Times

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

What’s Special? “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to. ” Leading Insurance Industry Analyst (10 -98)

“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

“Companies have defined so much ‘best practice’ that they are now more or less identical. ” Jesper Kunde, A Unique Moment

10 X/10 X

The Big Day!

09. 11. 2000: HP bids $18, 000, 000 for Pricewaterhouse. Coopers consulting business!

“These days, building the best server isn’t enough. That’s the price of entry. ” Ann Livermore, Hewlett-Packard

HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc.

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

“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

Keep In Mind: Customer Satisfaction versus Customer Success

“UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ” ecompany. com/06. 01 (E. g. , UPS Logistics manages the logistics of 4. 5 M Ford vehicles, from 21 mfg. sites to 6, 000 NA dealers)

New Springs = Turnkey Collections. Flexible sourcing. Packaging. Merchandising. Promotion. Systems & Site mgt.

Omnicom: 57% (of $6 B) from marketing services

Who was the number one employer of architecture school grads in the U. S. last year?

The Pursuit of … Whatever: Accenture to “do” AT&T’s sales & customer service … for $2. 6 B/5 years … savings to AT&T of 50%. Accenture to “do” Avaya’s corporate learning & training. Source: BW (02. 04. 2002)

“We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm. ” Jean Bellas, founder, SPACE (from SMPS Marketer)

“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location. ” (12. 16. 2001) –New York Times

Everybody is going after the same space! Problem:

“Assetless Company” John Bryan, CEO, on selling all Sara Lee’s manufacturing

“Don’t own nothin’ if you can help it. If you can, rent your shoes. ” F. G.

Better Red than Dead? / Better Dead than Red? “We will see more and more outsourcing of discovery processes. ” Craig Venter

1, 000 Pfizer: projects with academics and biotechs. Novartis: 30% of R&D is via collaborations.

Better Red than Dead? / Better Dead than Red? “If we completely outsourced all of our genetic analysis, we’d be held hostage by outside people. ” Brian Spear, Director of Pharmacogenomics, Abbott Labs

NC 2001: Furniture company outsources all mfg. to Asian firm gets financing, buys NC company. Hmmm!!? ?

“The move toward outsourced manufacturing represents an obvious opportunity for contract manufacturers [such as Flextronics: $93 M to $15 B, ’ 93 -’ 00], but it’s also a potential boon to product innovation. The future of gadget-making is not about making gadgets; it’s about imagining them. Someone else makes the imaginary real. ‘All that money that used to go to fund infrastructure is going into design and innovation, ’ says Flex CEO Michael Marks. ” Wired/11. 2001

Markets to networks. Hierarchies to networks. Sellers and buyers to suppliers and users. Ownership to access. (Age of Access. ) Marginalization of physical property. Weightless economy. Protean generation. Outsourcing of everything. Franchising of everything. (Business format franchising. ) (Leasing DNA. ) Everything is a service/platform for services delivery. (Give away the goods, charge for the services. VALUE = THE RELATIONSHIP. “Share of market” to “Share of customer. ”) Every business is show business. Source: Jeremy Rifkin, The Age of Access

Bottom Line: The … Solutions Imperative

1. It’s the (OUR!) organization, stupid! 2. Friction free! 3. No STOVEPIPES! 4. “Stovepiping” is a F. O. —Firing Offense. 5. ALL on the web! (ALL = ALL. ) 6. Open access! 6. Project Managers rule! (E. g. : Control the purse strings and evals. ) 7. VALUE-ADDED RULES! (Services Rule. ) (Experiences Rule. ) (Brand Rules. ) 8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period. ) 9. Solutions = “Our ‘culture. ’ ” 10. Partner with B. I. C. (Best-In-Class). Period.

11. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc. 12. Project Management can come from any function. 13. WE ARE ALL IN SALES. PERIOD. 14. We all invest in “wiring” the customer organization. 15. WE ALL “LIVE THE BRAND. ” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMERPARTNER. ) 16. We use the word “PARTNER” until we all want to barf! 17. We NEVER BLAME other parts of our organization for screwups. 18. WE AIM TO REINVENT THIS INDUSTRY! 19. We hate the word-idea “COMMODITY. ”

20. We believe in “High tech, High touch. ” 21. We are DREAMERS. 22. We deliver. (PROFITS. ) (CUSTOMER SUCCESS. ) 23. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us! 24. Our TEAM needs 100% I. C. s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair! 25. This is a hoot!

TP 2002: GE Industrial Systems. Farmers. Message I: Same-same. Way up the VA Chain. (Or else. ) Transformation: Full-service/ solutions provider. Great rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same space. Mr. Darwin is on he prowl!)

Getting Beyond Lip Service! “No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, aying for home repairs, or even taking a dream vacation. ”—Martin Feinstein, CEO, Farmers Group

Diversity Marketing … Communities of Interest … Bank of America relationship … specialized acquisitions … Farmers Agency Dashboard … Help. Point … licensed financial planners … etc.

Thank You!