Tom Peters Re-Imagine Business Excellence in a Disruptive

Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age New York /05. 06. 2004

Slides at … tompeters. com

“Uncertainty is the only thing to be sure of. ” —Anthony Muh, head of investment in Asia, Citigroup Asset Management “If you don’t like change, you’re going to like irrelevance even less. ” —General Eric Shinseki, Chief of Staff, U. S. Army

Montgomery Ward … Kmart … Sears … Macy’s … DEC … Wang … Compaq … Chase Manhattan … American Motors … Chrysler … U. S. Steel … Bethlehem Steel … AT&T … Soviet Union …

Wal*Mart … Dell … Microsoft … U. S. A. …

1. All Bets Are Off.

“ 14 MILLION service jobs are in danger of being shipped overseas” — The Dobbs Report/USN&WR/11. 03/re new UCB study

“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02. 04

“One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India. ” Source: The Straits Times/08. 18. 03

“Thaksinomics” (after Taksin Shinawatra, PM)/ “Bangkok Fashion City”/ “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03. 04. 2004

“There is no job that is America’s God-given right anymore. ” —Carly Fiorina/ HP/ 01. 08. 2004

“Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it will bring the two centuries of global domination by Europe and, subsequently, its giant North American offshoot to an end. ” —Financial Times (09. 22. 2003)

“The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people. ” —Craig Barrett/Intel/01. 08. 2004

“This is a dangerous world and it is going to become more dangerous. ” “We may not be interested in chaos but chaos is interested in us. ” Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

“We are in a brawl with no rules. ” Paul Allaire

S. A. V.

Successful Businesses’ Dozen Truths: TP’s 30 -Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior. ” 5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It. ” 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge. ) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers. ) 10. “Reward Excellent Failures. Punish Mediocre Successes. ” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power.

2. The Destruction Imperative.

“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

Forbes 100 from 1917 to 1987: 39 members of the Class of ’ 17 were alive in ’ 87; 18 in ’ 87 F 100; 18 F 100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ’ 57 were alive in ’ 97; 12 (2. 4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership. ” Clayton Christensen, The Innovator’s Dilemma

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

“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. ” Peter Job, CEO, Reuters

Market Share, Anyone? 240 industries: Market-share leader is ROA leader 29% of the time. Source: Donald V. Potter, Wall Street Journal

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

“Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things. ” —Roger Enrico, former Chairman, Pepsi. Co

2 A. Yo, Jim. Or: The Case for … Technicolor!

I. Good to Great II. Quiet, Humble Leaders

Good to Great: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo

SET THE AGENDA. Great Companies … (Period. )

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3 M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle … Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express … Ogilvy … Chiat/Day … Virgin … e. Bay … Amazon … Sony … BMW … CNN …

I. Good to Great II. Quiet, Humble Leaders

Huh? “Humility: The Surprise Factor in Leadership … bosses with Gungho Qualities and Charisma May Be Out of Fashion” —Headline/FT/ re JCollins/10. 03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)

Wellington Nelson Disraeli Churchill Montgomery Thatcher

“Humble” Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U. S. Grant/W. T. Sherman TR/FDR/LBJ/RR/JFK Patton/Monty/Halsey M. L. King/C. de Gaulle/M. Gandhi/W. Churchill Picasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson H. Clinton/G. Steinem/I. Gandhi/G. Meir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/ S. Jobs/S. Mc. Nealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J. P. Morgan/H. Ford/S. Honda/J. D. Rockefeller/ T. A. Edison Rummy/Norm/Henry/Wolfie Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth Dickinson/Arabella Babb Mansfield/Margaret Sanger

“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe. ” — Jack Welch

“In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshed—and produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce —the cuckoo clock. ” Orson Welles, as Harry Lime, in The Third Man

3. The “PSF Solution”: The Professional Service Firm Model.

“ Daddy, what do you do? ” Sarah: “I’m a ‘cost center. ’ ” Daddy:

Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc. ] Inc.

4. The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative. ”

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

“Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to. ” Leading Insurance Industry Analyst

“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 Nordström and Jonas Ridderstråle, Funky Business

“Companies have defined so much ‘best practice’ that they are now more or less identical. ” Jesper Kunde, Unique Now. . . or Never

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

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

Systems Integrator of choice. Global Services: Gerstner’s IBM: $35 B. Pledge/’ 99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12. 01).

“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)

Omnicom: 60% (of $7 B) from marketing services

And the Winners Are … Televisions – 12% Cable TV service +5% Toys -10% Child care +5% Photo equipment -7% Photographer’s fees +3% Sports Equipment -2% Admission to sporting event +3% New car -2% Car repair +3% Dishes & flatware -1% Eating out +2% Gardening supplies -0. 1% Gardening services +2% Source: WSJ/05. 16. 03

IBM/Q 3/10. 15. 03/Rev: +5% Services/Consulting: +11% Software: +5% Hardware: -5% PCs: -2% Technology/Chips: -33%

5. A World of Scintillating “Experiences. ”

“Experiences are as distinct from services as services are from goods. ” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

The “Experience Ladder” Experiences Services Goods Raw Materials

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me. ’ ” Source: Jean-Marie Dru, Disruption

“The [Starbucks] Fix” Is on … “We have identified a ‘third place. ’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge. ” Nancy Orsolini, District Manager

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

WHAT CAN BROWN DO FOR YOU?

“I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation. ” Bob Lutz: Source: NYT 10. 19. 01

“Lexus sells its cars as containers for our sound systems. It’s marvelous. ”—Sidney Harman/ Harman International

Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of undifferentiated boxes” … $400 to $1, 300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family. ” … “machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room” (complements Sub-Zero refrigerator and home-theater center) Source: New York Times Magazine/01. 11. 2004

1997 -2001 >$600: 10% to 18% $400 -$600: 49% to 32% <$400: 41% to 50% Source: Trading Up, Michael Silverstein & Neil Fiske

“Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between. ” Jesper Kunde, Unique Now. . . or Never [on the excellence of Nokia, Nike, Lego, Virgin et al. ]

Extraction & Goods: Male dominance Services & Experiences: Female dominance

6. Experiences+: Embracing the “Dream Business. ”

DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be. ” —Gian Luigi Longinotti-Buitoni

The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz, ” the “hype, ” the “cult. ” Source: Gian Luigi Longinotti-Buitoni

(Revised) Experience Ladder Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services. ” —Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

“Trustmarks come after brands; Lovemarks come after Trustmarks. Think about how you make the most money. You make it when loyal users, heavy users, use your product all the time. So having a long-term Love affair is better than having a trusting relationship. ” —Kevin Roberts, Saatchi & Saatchi, The Future Beyond Brands: Lovemarks

7. The “Soul” of “Experiences”: [Mostly Ignored] Design Rules!

Design Myths.

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]

Design 2002 LISTERINE’s … Pocket. Paks

Westin’s … Heavenly Bed

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

“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

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.

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

“Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female. ” Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

8. Trends Worth Trillion$$$ I: Women Roar.

? ? ? ? ? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55 B travel equipment) Houses … 91% D. I. Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

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

1970 -1998 Men’s median income: +0. 6% Women’s median income: + 63% Source: Martha Barletta, Marketing to Women

91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED. ”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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!)

Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to women’s needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

“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

Senses Vision: Men, focused; Women, peripheral. Hearing: Women’s discomfort level I/2 men’s. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women

Editorial/Men: Tables, rankings. * Editorial/Women: Narratives that cohere. * *Redwood (UK)

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

2. 6 vs. 21

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? ”

Psssst! Wanna see my “porn” collection?

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)

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1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.

“And even if they manage to get the age thing right, [Marti] Barletta says companies still tend to screw up in fairly predictable ways when they add women to the equation. Too often, their first impulse is to paint the brand pink, lavishing their ads with flowers and bows, or, conversely, pandering with images of women warriors and other cheesy clichés. In other cases they use language intended to be empathetic that come across instead as borderline offensive. ‘One bank took out an ad saying, We recognize women’s special needs, ’ says Barletta. ‘No offense, but doesn’t that sound like the Special Olympics? ’ ” —Fast Company/03. 04

9. Trends Worth Trillion$$$ II: Boomer Bonanza/ Godzilla Geezer.

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%)

44 -65: “New Consumer Majority” * *45% larger than 18 -43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

“The New Consumer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies. ” —David Wolfe & Robert Snyder, Ageless Marketing

“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing

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

“Sixty Is the New Thirty” —Cover/AARP/11. 03

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 cars $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

“Advertisers pay more to reach the kid because they think that once someone hits middle age he’s too set in his ways to be susceptible to advertising. … In fact, this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of youth. ”—James Surowiecki (The New Yorker/04. 01. 2002)

“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood. ”—Peter Francese, founding publisher, American Demographics

“Women 65 and older spent $14. 7 billion on apparel in 1999, almost as much as that spent by 25 - to 34 -yearolds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0. 1%. But who in the fashion industry is currently pursuing this market? ” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

Possession Experiences /“Desires for things”/Young adulthood/to 38 Catered Experiences/ “Desires to be served by others”/Middle adulthood Being Experiences/“Desires for trancending experiences”/Late adulthood Source: David Wolfe and Robert Snyder/Ageless Marketing

“ ‘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

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

10. Boss Job One: The Talent Obsession.

Age of Agriculture Industrial Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute

Brand = Talent.

“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others. ” Warren Bennis & Patricia Ward Biederman, Organizing Genius

Les Wexner: From sweaters to people!

From “ 1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

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

“Deviance tells the story of every mass market ever created. What Deviants, Inc. starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there. ” Source: Ryan Matthews & Watts Wacker, Fast Company (03. 02)

CM Prof Richard Florida on “Creative Capital”: “You cannot get a technologically innovative place unless it’s open to weirdness, eccentricity and difference. ” Source: New York Times/06. 01. 2002

“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

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: Women Managers

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

“Internationally, the United States ranked sixtieth in women’s political leadership, behind Sierra Leone and tied with Andorra. ” —Marie Wilson, Closing the Leadership Gap

“Are men obsolete? ” —Headline, USN&WR/06. 03

Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

11. Brand Talent+: Addressing the Education Fiasco.

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills. ’ ” grade in art at such a young age? Jordan Ayan, AHA!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist. ’ The point is: Every school I visited was participating in the suppression of creative genius. ” Gordon Mac. Kenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

15 “Leading” Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002

“There is little evidence that mastery of the knowledge acquired in business schools enhances people’s careers, or that even attaining the MBA credential itself has much effect on graduates’ salaries or career attainment. ” —Jeffrey Pfeffer (tenured professor, Stanford GSB/2004)

Ye gads: “Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that schoolrelated evaluations are poor predictors of economic success, ’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on. ” Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

12. THINK WEIRD … the HVA/ High Value Added Bedrock.

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

“If you worship at the throne of the voice of the customer, you’ll get only incremental advances. ” Joseph Morone, President, Bentley College

Primary Obstacles to “Marketing-driven Change” 1. Fear of “cannibalism. ” 2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups. ” 3. Creating “sustainable advantage. ” Source: John-Marie Dru, Disruption

W. I. W? 20 of 26 7 of top 10*

*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 (The “billiondollar” problem. ) categories. Source: Advertising Age 01. 2002/Bof. A Securities

Account planning has become “focus group balloting. ” —Lee Clow

“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition. ” Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative and breakthrough reengineering of product and service benefits, but we don’t train people to think like that. ’ The way marketing is taught across business schools is far too analytical and datadriven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs. ’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, Mc. Cann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea. ’ ”—Businessworld/04 Nov 2002/“Why Is Marketing Not Working? ”

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

“To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation. ” —W. Chan Kim & Renee Mauborgne, “”Think for Yourself —Stop Copying a Rival, ” Financial Times/08. 11. 03

“The short road to ruin is to emulate the methods of your adversary. ” — Winston Churchill

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

Boards: “Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable” —Jeffrey Sonnenfeld, Yale School of Management

“The Bottleneck is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma? At the top!” — Gary Hamel, “Strategy or Revolution/ Harvard Business Review

We become who we hang out with!

WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1. 5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation

Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke. . . Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow. . . or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

Big Idea/s V. C. GM Portfolio Roster

Innovation Index: How many of your Top 5 Strategic Initiatives score 7 or higher (out of 10) on a “Weirdness/Profundity Scale”?

The Re-imagineer’s Credo … or, Pity the Poor Brown* Technicolor Times demand … Technicolor Leaders and Boards who recruit … Technicolor People who are sent on … Technicolor Quests to execute … Technicolor (WOW!) Projects in partnership with … Technicolor Customers and … Technicolor Suppliers all of whom are in pursuit of … Technicolor Goals and Aspirations fit for … Technicolor Times. *WSC

13. Leading in Totally Screwed-Up Times: The Passion Imperative.

33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver— 0. Tom Kelly— 0. Jim Leyland— 0. Walter Alston— 1 AB. Tony La. Russa — 132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson— 1 season.

“Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done. ” – P. D.

“I don’t know. ”

Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best. ” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness. ”

The Kotler Doctrine: 1965 -1980: R. A. F. (Ready. Aim. Fire. ) 1980 -1995: R. F. A. (Ready. Fire!Aim. ) 1995 -? ? : F. F. F. (Fire!Fire!)

“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly. They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they’ve gained in other markets to enforce their standard. ” Seth Godin, Zooming

“Reward excellent failures. Punish mediocre successes. ” Phil Daniels, Sydney exec (and, de facto, Jack)

“I’m not comfortable unless I’m uncomfortable. ” —Jay Chiat

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

“Dream as if you’ll live forever. Live as if you’ll die today. ” —James Dean

“the wildest chimera of a moonstruck mind” —The Federalist on Jefferson’s Louisiana Purchase