TOM PETERS LESSONS IN LEADERSHIP2000 3 FEBRUARY SACRAMENTO

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TOM PETERS LESSONS IN LEADERSHIP20003 FEBRUARY
SACRAMENTO
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ALL SLIDES ARE AVAILABLE ATtompeters.com
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Brand InsidePSF 2Brand Work!
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Seminar Y2K Brand EverythingDistinct or
Extinct
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Microsoft R.O.W.Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhaeuser Union Pacific
Kodak Sears Marriott Safeway
KelloggSource Business Week data through 5-99
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Microsoft R.O.W. (II)Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhaeuser Union Pacific
Kodak Sears Marriott Safeway Kellogg
McDonalds Bank One General Mills American
Airlines United Airlines Delta Air Lines
US Airways Quaker OatsSource Yastrow
Marketing (through 11-23-99)
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
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Forces at WorkThe Destruction Imperative!
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Forget LearnThe problem is never
how to get new, innovative thoughts into your
mind, but how to get old ones out.
Dee Hock
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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64/24
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Q What do you do when you are a big, dopey
company and out of ideas?
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A You merge with another big, dopey company
that doesnt have any ideas either.
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R An incredibly big, incredibly dopey company
going nowhere.
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Talent and a 2T enterprise??????
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When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
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I feel betrayed. I bought stock in a company
that was going to change the world. I didnt buy
a big, fat, stupid conglomerate. And now Ive got
one.Alan Towers, consultant, quoted in
Business Week BW The irony is that AOL Time
Warner is a vertically integrated conglomerate.
Not exactly the sort of nimble competitor that
will thrive in cyberspace.
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Gatesian wealth is created when you build
something new. Get on a rocket and ride it to the
moon. Viacom-CBS doesnt look much like that
kind of rocket.Kevin Maney, USA Today
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
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We chose not to do a discounted cash flow
analysis of their future earnings. We wanted
their talent and we wanted their intellectual
property. Art Reidel, CEO, Pharsight
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Our ideal acquisition is a small startup that
has a great technology product on the drawing
board that is going to come out in six to twelve
months. We buy the engineers and the next
generation product.
John Chambers, Cisco
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Dept. Head Sports GMDept. Head V.C.
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Silicon Valley Success SecretsPursuit of
risk 4 of 20 in V.C. portfolio go bust 6 lose
money 6 do okay 3 do well 1 hits the
jackpotSource The Economist
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R DIntels venture fund 275 investments,
3.5BSource Fast Company (12-99)
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EcoNets/Internet ZaibatsusThe model is about
partial acquisitions and ownerships that then
form a whole. Each part has to have value
separately, be able to raise capital separately,
and motivate employees separately. Corporations
of the past never had that.Flip Filipowski,
divine interVentures (Red Herring)
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The brick and mortars will die, no matter what.
So you have to take your best employees and
best businesses and spin them off and just own 40
percent of everything thats left. Do that and
you survive.Flip Filipowski, divine
interVentures (Red Herring)
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DYB.com
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DestroyYourBusiness.com (GE)
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C.E.O. to C.D.O.
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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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E.g. Craig Venter/Celera Genomics
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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TTTTTurbulent Times!Top 3 Americans 48
poorest nationsSource Newsweek 12-99
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ALL OF THESE CONVERSATIONS TODAY ABOUT THE
WEB WILL APPEAR SO BLOODY DAMN SILLY AND
PEDESTRIAN TEN FIVE? THREE? YEARS FROM
NOW. Tom Peters (11-99) P.S. Read Ray
Kurzweils The Age of Spiritual Machines When
Computers Exceed Human Intelligence
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BW human brain has only a short time left as
the smartest thing on earth/ subjugate humanity
by 2050 Health Forum Journal In one
generation or less, every element of health care,
every assumption, will be changed or gone.Dr.
George Poste, SKB 500 molecular targets in 95
to 70,000 in 99/ 35 compounds per year to 2M
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Medicine looks likely to change more in the next
20 years than it has in the last 200.British
Medical Journal (11-11-99)
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Wired Feb 2000Cyborg 1.0 Kevin Warwick
Outlines His Plan to Become One with His Computer
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MagsAdvertising AgeBusiness 2.0Fast
CompanyRed HerringScientific American Wired
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Brand InsidePSF 1Brand Org!
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108 X 5vs. 8 X 1 540 vs. 8
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ERP, ECM, Web, Etc.ITS THE GIANT SUCKING SOUND
OF SLACK BEING EXTRACTED FROM THE GLOBAL
ECONOMY!
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Cemex and FDX!
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CCC InformationServices!
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FDX and Cisco!
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Assetless CompanyJ.B.
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Dont own nothin if you can help it. If you
can, rent your shoes. F.G.

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RR on Sara LeeThe most profitable businesses
in the future will act as knowledge brokers,
linking insights into whats available with
insights into the customers individual needs and
preferences.
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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And Enron!
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The -!! in the middleJim Clark on
Healtheon twixt docs, patients and
providers 250B in waste (?) source Michael
Lewis, The New New Thing
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Hewitt HMO e-bids!
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Words to Live By Hierarchy is an
organization with its face toward the CEO and its
ass toward the customer.Kjell Nordstrom and
Jonas Ridderstrale, Funky Business
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PSF 1.0Professional Service Firm Conversion Kit
/ Release 1.0
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CredoWORK WORTH PAYING FOR
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Why are there no books on how to create a Cool,
Rocking, WOW-producing Finance Department?
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PSF 1.0 Department Head to Managing
Partner, HR IS, etc. Inc.
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support function / cost center /
bureaucratic dragor Rock Stars of the
Age of Talent
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Real PSF

• Think Inc. (Mindset Step No.1!)
• Clients rule! / Engage Clients in deep dialog/
  Join us in an Adventure / Fire duds!
• Work WOW Projects (100!)
• Embrace the Politics of Implementation!
• Practice serial monogamy!
• Master the economics! (WWPF!)

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Real PSF

• WE HELP PEOPLE!
• Co-habit with the Client!
• Create a Culture of Urgency!
• Love thy Support Staff!
• You need a Methodology! /
• Obsess on RD!
• BECOME A CONNOISSEUR OF TALENT!

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Real PSF WE OWN THIS PLACE!THIS IS COOL
STUFF!WE ARE THE WORLD!
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The 7Ps of PSF 1.0Projects!Passion!Provocati
on!Partnership!Politics!Professionalism!Perfor
mance!
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C.I.O. to C.E.F.R.N.S.
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Chief Evangelist For Really Neat Stuff
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Brand DefinedDistinctionExcellenceEmotional
SignatureTrustworthinessConsistencyShorthand
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Brand InsidePSF 2Brand Work!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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But Does It Matter ????On time, on budget
who cares? anon. seminar participant (4/99)
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You really got to me. So many of our information
technology projects take on a life of their own,
and I know theyll never end up as more than
mediocre successes. CEO, F100 financial
services company (10-98)
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WOW Project AnatomyI. Create!II. Sell!III.
Implement! IV. Exit!
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I. Create!Reframe! THERE ARE NO SMALL
PROJECTS! Observe Record!!Head for the
trenches!You gotta love it!Measure WOW!,
Beauty, Raving Fans, Impact!Build a no-baloney
Business PlanCreate community. Now!Obsess on
the End User. Now!
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Reframers RulesRule 1 Never accept an
assignment as given!Rule 2 Youre never so
powerful as when you are powerless!Rule 3
Every small project contains the entire
enterprise DNA!
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Measures

• WOW!
• Beauty!
• Raving Fans!
• Impact!

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E.g. WOW Scale1. Dull as dishwater.5.
Gets the job done.7. Good work!.10. A
serious Braggable!
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Kaiser 4.15.29
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Liberty Ship2 years240 days9 hours4 days,
15 hours, 29 minutes
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Just Say No to S-t-r-e-t-c-h
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Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
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WOW Project Acid TestCan you explain it -
with zest - to your 14-year-old?
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G Howd that herring bone pattern for the hearth
come out?T Great! But the tile guyd like to
get his hands on you it was a royal pain.G But
it looks good, right?T Fabulous.G Thats what
matters. I tell my guys, It may be a lot of
work, but think about it this way Would you
bring your kid back, 10 years from now, to see
the job?
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II. Sell!Master The Pitch!Build Buzz.
Consciously.Network maniacally!Preach to the
choir!Forget your enemies. Surround and
marginalize!Money kills!SELL, SELL, SELL!
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III. Implement!- Live, eat, sleep Quick
Prototype!-Play! - Keep on recruiting!
(Sell!)- Obsess on the End User Community!
(Sell!)- Become a Milestone Maniac! / a Timeline
Tyrant! / a List Freak! / find Ms. Last 2!-
Appoint a Marketing Director!- Keep the WOW!
front and center!
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Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

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You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.Micha
el Schrage, Serious Play
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Two of my colleagues are guitar players. We
talked about broken guitars, and I did remember
Jimi Hendrix breaking guitars on stage. There
is a guitar shop near our office in Santa Monica.
We got a bunch of broken chunks of guitars and
piled them all up and started to look at the
colors. Frank Gehry, on the Seattle rock
museum commissioned by Paul Allen
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I view models and prototypes as the battleground
for thoughts and behaviors.Michael Schrage
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Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
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Prototypers LawsDefine a small, practical test
of something on a page or less of text.
Now.Gather found materials on the very
cheap.Find a/one partner-customer wholl
provide a test site.Set a very tight deadline
of about 5 days for the next concrete
step.Conduct the test! Debrief A.S.A.P.Set
the next test date. Now. No more than 5 days
hence.
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• Secret No. 1 Go horizontal Find a (one!) line
  ally in the Boonies
• Secret No. 2 Powerless allies are Cool!
• Secret No. 3 Passion Rules!
• Secret No. 4 Become a Prototyping Maniac!
• Secret No. 5 Embrace Politics / Community
  Organizing!

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K2K
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Fact Skunking/ Starting a Skunkworks is a
tactic available to a junior supervisor or even
an independent contributor.
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ReferenceRules for Radicals, Saul Alinsky
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IV. Exit!Sell out! / Embrace The
Suits!Recruit a passionate Ms./Mr.
Follow-up!Seed your freaks into the
mainstream!Celebrate!Exit!
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SOOOO HOW MANY OF YOUR COLLEAGUES ARE BACK
HOME AT WORK ON NO-BALONEY WOW PROJECTS!
WOW Will be remembered fondly/ bragged about 5
years from now
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Epitaph from Hell Joe T. Jones 1942 - 2000
HE WOULDA DONE SOME REALLY COOL STUFF BUT
HIS BOSS WOULDNT 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 (10/26/98)
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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T.T.D. Now!

• List all projects
• Carefully describe a WOW Outcome for you and
  the Client
• Score (!) all projects on WOW, Beauty, Impact,
  Raving Fan-hood
• Pick one project with a high combined score
• Draft a one-page New Description that emphasizes
  WOW, Beauty, etc.
• Circulate and edit for three days
• Reduce to 5 bullet points

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We are not trying to WOW you up.We think you
are/have WOW.We are trying to give you
permission to be WOW.
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1) Turn ignition key.2) Shift into drive.3)
Press foot firmly on the throat of
mediocrity.Source Mercedes ad
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Seminar Y2KMESSAGE THE WORK MATTERS!Sorry,
Scott!
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Brand InsidePSF 3Brand You!
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The fundamental unit of the new economy is not
the corporation, but the individual. Tasks arent
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.
Thomas Malone and Robert Laubacher

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DISTINCT OR EXTINCT!If there is
nothing very special about your work, no matter
how hard you apply yourself, you wont get
noticed and that increasingly means you wont get
paid much, either. Michael Goldhaber,
Wired
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If one quarter cant make the journey, thats
the way it has to be.Carly Fiorina
(1-00/Forbes)
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Personal Brand Equity Eval

• I am known for 2 to 3 things
• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• Additions to my Rolodex include
• My resume is discernibly different from last
  years at this time

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They Get it?!

• stone mason
• electrician
• plumber
• tiler
• cabinet maker
• contractor
• blacksmith
• well driller
• blaster
• sheep shearer
• etc.

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Icon Woman

• Totally turned on by her work!
• It matters / a WOW Project!
• It is COOL!
• It is BEAUTIFUL!
• She is in your face!
• She is an adventurer!
• She is CEO of her own life!

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Icon Woman

• - She is at least a little funky!
• Her curiosity is insatiable!
• She thinks screwups are as normal as
  breathing!
• She hangs out with some seriously rad Dudes!
• She is not God. She is not Bionic Woman. She is
  determined to make a damned difference!

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Well-behaved women rarely make history.
Anita Borg, Institute for Women and
Technology
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Icon Woman Meets the Web

• submits resume on the Web
• recruited on the Web
• hired on the Web
• trained on the Web
• creates and conducts projects with virtual teams
  on the Web
• manages project and client follow-up on the Web
• manages career/reputation-building on the Web

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The Brand Called URL/Nathan Shedroff, Vivid
Studios24 X 7 storefront devoted exclusively
to The Brand Called You.
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HAVING SAID ALL THAT ...
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• It was much later that I realized Dads secret.
  He gained respect by giving it. He talked and
  listened to the fourth-grade kids in Spring
  Valley who shined shoes the same way he talked
  and listened to a bishop or a college president.
  He was seriously interested in who you were and
  what you had to say.
• Sara Lawrence-Lightfoot, Respect

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AssignmentConstruct a 1/8-page or 1/4-page ad
for Brand You for the Yellow Pages
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How About It?Replace your current evaluation
process with Yellow Pages ads.
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Bill Parcells World/ Brand You World!BLAME
NOBODY!EXPECT NOTHING!DO SOMETHING!NY Post
(9/99)
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Everything can be taken from man but one thing
the last of human freedoms - to choose ones own
attitude in any set of circumstances, to choose
ones own way.Victor Frankl, Auschwitz survivor
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Seminar Y2KMessage Distinct or Extinct!
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There comes a time in everyones life when they
realize they work for a dead guy.FreeAgent.com
ad
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Brand InsidePSF 4Brand Talent!
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Issue Y2KThe Great War for Talent!
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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
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Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
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A Connoisseur of Talent

• Spends time on Talent!
• Becomes a student of Talent!
• Puts Talent on the agenda!
• Practices D.I.Y.
• Uses Plain English! (If you want sunny ask
  for sunny!)
• Creates Workspaces that foster energy,
  entrepreneurship and creativity!
• Recruits from oddball places! / Recruits
  Oddballs!

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Recruiting college students is a job for
marketing, not HR.Jeff Daniel,
collegehire.com
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Talent and Work SpaceA Grossly Neglected
Connection!Imagine working for a company that
not only understood that the best ten hours of
your day are spent at work - but did everything
in its power to make them energizing, rewarding
and productive as possible. Imagine coming to
work each day in a building that greeted every
person as a creative, entrepreneurial, exciting
person.Rosemary Kirkby, Lend Lease, proposal
for headquarters of MLC
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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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Axiom Never hire anyone without an aberration
in their background. (Find the One Ton Cookie
Man!)
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A Connoisseur of Talent

• Recruits M.I. (Gardner Logical-mathematical,
  linguistic, artistic, musical, bodily-kinesthetic,
  intrapersonal-self, interpersonal-others)
• Recruits arts!
• Becomes de facto C.D.O. (Chief Diversity Officer)
• Turns the pay scale upside down! / Pays Talent!
• Rewards Promotes all on Talent Development
  Skills!
• Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

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Every school I visited was participating in the
systematic suppression of creative
genius.From cradle to grave the pressure is
on BE NORMAL! Gordon MacKenzie

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Where do good new ideas come from? ...Thats
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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R.D.A.Rate 15?, 25?Therefore Formal
Investment Strategy/R.I.P.
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R.I.P.IS IT ... WOW!?
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R.I.P.10 Major job change new area of
concentration major offsite educational
investment extensive sabbatical oddball
learning experience of 2 months exceptional
community project presidency of fundraising
drive, run for school board.
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R.I.P.5 ... Extensive course work in oddball
area of passionate interest major off-the-job
activity community involvement, learn to play
the cello, study Chinese.1 Company training,
as directed.
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R.I.P.Use by yourself.Use with your
mates.Use quantitatively? as a measure of
departmental/ P.S.F. renewal.Use in formal eval
process.
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R.I.P.The Southern Co. meeting!
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Training Y2KAnytime, anywhere!Whatever!Conco
cted by the employee Training Account
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Attributes of Those Who Made the 10th Grade
History Book

• Committed!
• Determined to make a difference!
• Focused!
• Passionate!
• Irrational about their lifes project!
• Ahead of their time / Paradigm busters!
• Impatient! / Action Obsessed

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Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar! / Rebels! /
  Irreverent!
• Masters of improv / Thrive on chaos / Exploit
  chaos!

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Attributes of Those Who Made the 10th Grade
History Book

• Forgiveness Permission
• Bone honest!
• Flawed as the dickens!
• In touch with their followers aspirations
• Damn good at what they do!

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Just Say No to Grout! Participant Dont
you need grout between the tiles?TP No!
med staff, NFL Special Teams,waiters, PFCs,
cymbals player, bit parts, waiters
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Conformity is the enemy of freedom and the
jailer of growth.J.F.K.
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TPs Ideal JobHead of Housekeeping!
146
You say you dont want emotional, volatile and
unpredictable, just imaginative. Sorry, they come
in a package. I can give you a dedicated, loyal,
honest, realistic knowledgeable package, but the
imagination bit will be rather limited.Patricia
Pitcher, The Drama of Leadership
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The boundaries for acceptable weirdness have
dramatically expanded.Michael Schrage
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Yes! Director of Bringing in the Really Cool
People
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All You Need to Know?Chief Evangelist For
Really Neat StuffDirector Of Bringing In The
Really Cool People
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Talent War Y2K!

• All out!/ Time consuming!
• Never ending!/ Unwinnable!
• Includes everybody!/ Everybodys game! (Were
  all in sales.)
• Expensive!
• Cool!/ WOW!/ Fun!/ Creative!
• Strategic!/ Core competence!

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Talent Brand
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Brand OutsideBrand Inside
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Brand OutsideContextNo Commodities!
154
In the Beginning The audit has become a
commodity.Big 5 audit partner to TP
155
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
156
Quality Not Enough!While everything may be
better, it is also increasingly the same.Paul
Goldberger on retail, The Sameness of Things,
The New York Times
157
Whats 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)
158
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
159
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
160
The 10X/10X Phenomenon10 Times Better/10
Times Less Different
161
TPs Campaign Y2KJust say shout No! to the
inevitable commoditization of anything.
162
When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
163
Pretzel Crumb-less-ness Plus The Ritz Carlton
Experience enlivens the senses, instills
well-being and fulfills even the unexpressed
wishes and needs of the guest.from the Ritz
Carlton Credo
164
We want to create waves of lust for our
product.Andy Grove (on the Pentium Processor)
165
You do not merely want to be the best of the
best. You want to be considered the only ones who
do what you do.Jerry Garcia
166
Lust HierarchySatisfy Conform to Requirements
Exceed Expectations Delight! WOW! Lust!
ONLY ONES WHO DO WHAT WE DO!
167
What Jerry Should Have Said???You do not
merely want to be the best of the best, you want
to be considered in conformance with
requirements.
168
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
169
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
170
Brand OutsideStrategy 1Lead the Customer!
171
The customer is a rear view mirror, not a guide
to the future.George Colony, Forrester
ResearchIf you worship at the throne of the
voice of the customer, youll get only
incremental advances.Joseph Morone, President,
Bentley College
172
Early Customer RejectionPost-Its 12
years!Chrysler MinivansVCRsFax
machinesFedExCNNHeart-assist
pumpsEtc.Source Fortune
173
Good Bad/ 1 of 30,000We are crazy. We
should do something when people say it is
crazy. If people say something is good, it
means someone else is already doing it.Hajime
Mitarai, Canon
174
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
175
Benchmarking, Perils of The best swordsman in
the world doesnt 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 doesnt
do the thing he ought to do, and so the expert
isnt 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
176
Lead customers!K2K redux!
177
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
178
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
179
Brand OutsideStrategy 2Master E-Commerce!
180
30,000,000. ???
181
Dells Web sales daily
182
350,000 ?????
183
New items going on sale at eBay daily (12-99)
184
2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
185
Tomorrow Today Cisco!7B of 10BSave 500M
(service and tech support)C.Sat e C.Sat
HCustomer Engineer Chat Rooms (1B?)
186
And Larry?
187
Business 2.0 20 Industries About To Be
Fossilized by The Net (3-99)Travel Agents (2B
now, 30B in 2003) Apparel (1-21) Autos
(4-213) Home Electronics (1-21) Paper and
Office Supplies (1-65) Food ((7-170) Computing (20-400) Newspapers (5B of
19B classifieds)
188
Banking is necessary. Banks are not.Dick
Kovacevich, Norwest/ Wells
189
Cherry PickingVertical MarketsPlasticsnet.com
370B sellers pay 5K to 8K for storefront
5 to 10 cut Hook community services
(database, catalogs, forums, industry job bank,
etc.)
190
W.W. Grainger2X phone/fax220B MRO
market (per Business 2.0/02-00)
191
B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 1-26-00)
T
192
Consumer Health Care Sovereignty!
E.g.Empowered consumers influenced by medical
advertising and educated by information on the
Internet are driving demand for new vision
correction options. Start Up (10-99) Take
your White Coat and
193
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
194
Shop in your UnderwearSource SMd logo for
www.ae.comae American Eagle Outfitters
195
Psych 101 Strongest Force on Earth?My need to
be in perceived control of my universe!
196
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
197
Patricia Seybolds BasicsThe E-Customer Bill
of RightsDont waste my time!Remember who I
am!Make it easy for me to order and procure
service!Customize your products and services for
me!Source customers.com
198
Welcome back, Tommy!
199
In the network economy, the Website becomes the
companys primary interface to the customer. The
user interface becomes the marketing materials,
store front, store interior, sales staff and
post-sales support all rolled into one.Jakob
Nielsen, Designing Web Usability
200
Read This. No INGEST This!Jakob
NielsenDesigning Web Usability The Practice of
Simplicitywww.useit.com
201
Most companies would do more business on the
Internet if they fired their entire marketing
department and replaced it with people who could
produce interactive content that actually made it
easier for users to buy.Jakob Nielsen, Nielsen
Norman Group
202
Red Herring (01/00)75 of online shoppers dont
complete their purchase!
203
Nielsen/Designing Web UsabilityAll Web projects
are customer-interface projects! Simplicity
rules! Make it easy for customers to perform
useful tasks!Less cool, more useful!Speed
rules!
204
Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

205
Change Or Die!Most of the brick and mortars
look at the Internet as an add-on business
until they get a major scare. Then they either
change or die. You have to put all your heart
and soul in that direction, the way Charles
Schwab and Dell did.Flip Filipowski, divine
interVentures (Red Herring)
206
Even if executives of established businesses
grasp the impact of new technologies they still
face a massive competitive disadvantage precisely
because they are incumbents. They do complex
financial calculations and get bogged down in
internal political debates. Insurgents have no
such inhibitions. Philip Evans Thomas
Wurster, Blown to Bits
207

• if they set up a completely independent
  organization and let that organization attack the
  parent.
• Clayton Christensen, The
  Innovators Dilemma

208
There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
209
Web Strategy GE Power SystemsLaunch and
Learn(4 sites in 30 days)
210
Goodhome.com
211
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
212
Brand OutsideStrategy 3Women Rule!
213
?????????Home Furnishings 94Vacations
92Houses 91Bank Account 89Health Care
75Etc.
214
48 working wives 5080 checks61 bills53
stock (mutual fund boom)43 500K95
financial decisions/ 29 single handed
215
Women 49 of Web users 6 of 10 new users 83
of wired women are primary decision makers for
family healthcare, finances, education.Source
Business Week (11-99)
216
3.3T 1.5T 4.8T Larger than Japan!
217
Most Under-reported story!9M/20M/4T
Germany 400K in 72 132 since
92source NFWBO, Cognetics
218
New golfers 37Basketball 13.5M1 in 27
(70) 1 in 3 (96)
219
1874?
220
1874 Jock Strap1977 Jogbra1977 ...
25K1996 42M
221
Yeow!1970 12000 50
222
OPPORTUNITY NO. 1! No shit!
223
Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
224
FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons.He simply wants
the transaction to take place. Shes interested
in creating a relationship. Every place women go,
they make connections.
225
Men seem like loose cannons. Men always move
faster through a stores aisles. Men spend less
time looking. They usually dont like asking
where things are. Youll see a man move
impatiently through a store to the section he
wants, pick something up, and then, almost
abruptly hes ready to buy. For a man,
ignoring the price tag is almost a sign of
virility.Paco Underhill, Why We Buy Buy
this book!
226
Women and Financial AdvisorsWomen want a
plan, to be listened to, to be taken seriously,
to read about it, to think about it.Women do
not want an in-your-face sales pitchSource
Kathleen Boyle, Wheat Boyle Butcher Singer
227
Women and HealthcareWomen are more
dissatisfied, frustrated by the way they are
treated and spoken down to by physicians, seek
more information, are more pressed for time and
make 75 of health care decisions and control
2/3 of health care and constitute 2/3 of
health care employees.Source Patricia Braus,
Marketing Healthcare to Women
228
Marketing to Women Help Them Save Time!80
work86 cook58 run errands with kids38
take child to school21 go to the gym21
take outside classes
229
How Many Gigs You Got, Man?Hard to believe
Different criteria Every research study weve
done indicates that women really care about the
relationship with their vendor. Robin
Sternbergh/ IBM
230
Not!!Year of the Woman
231
Enterprise Reinvention!RecruitingHiring/Rewardi
ng/ PromotingStructure ProcessesMeasurementStr
ategyCulture VisionLeadershipTHE BRAND ITSELF!
232
What kind of car does Mommy want?
233
I didnt know company were giving company cars
to secretaries.Source UK financial services
CEO, 12/99
234
Not a Morality Play!It is critical that we all
understand that IBM is not marketing to women
entrepreneurs because it is the thing to do, or
even the right thing to do. We are marketing to
women entrepreneurs because it is a huge
opportunity.Cherie Piebes
235
Speaking of Enormous Missed Huge
Opportunities ...
236
74/55At each stage of their lives, the needs
and desires of the baby boomers have become the
dominant concerns of American business and
popular culture. If you can anticipate the
movement of the baby-boom generations life-span
migration, you can see the future.Ken
Dychtwald, Age Wave
237
Aging/Elderly2X growth rateIm
in charge!Experiences vs. ProductsDesign
revolution!Good source Ken Dychtwald, Age Wave
238
Priorities Aging/ElderlyExperiences
Convenience Comfort Access Respect!
239
Any student who combines an expertise in
gerontology with, say, an M.B.A. or law degree
will have a license to print money.Newsweek
240
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
241
Brand OutsideStrategy 4Design Rules!
242
And Tomorrow Fifteen years ago companies
competed on price. Now Its quality. Tomorrow
its design.Robert Hayes
243
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
244
Design is treated like a religion at
BMW.Fortune (10/98)
245
Drop-dead Charm!The new Beetle fails at most
categories. The only thing it doesnt fail in is
drop-dead charm.Jerry Hirshberg, Nissan Design
International
246
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 iMac. Suddenly, a computer is no longer an
anonymous box. It is a sculpture, an object of
desire, something that you look at.Katherine
McCoy, Michael McCoy, Illinois Institute of
Technology
247
Design as SoulWe dont have a good language to
talk about this kind of thing. In most peoples
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
248
Check Out the LanguageTomorrow its design
Design is the only thing Design is
religion ...Drop-dead charm Object of
desire Fundamental soul
249
The I.D. International Design FortyAirstream
Alfred A. Knopf Apple Computer Amazon.com
Bloomberg Caterpillar CNN Disney FedEx
Gillette IBM Martha Stewart New Balance
Nickelodeon Patagonia The New York Yankees
3M Etc. List No. 1, 1999
250
Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
251
One-sixth Second per Item!During the 30
minutes you spend on an average trip to the
supermarket, about 30,000 products vie to win
your attention and ultimately to make you believe
in their promise.Thomas Hine, The Total Package
252
Design Moments!Shopping cart 2X heavy
itemsSource Wall Street Journal (11-24-99)
253
MessageServices are Not Intangible!You give
off hundreds of design cues daily!YOU ARE A
DESIGNER!
254
Graceful language!
255
Susan Sargent Designs PLEASE COMPLAIN!Thanks
for your order!We dearly want everything to go
p-e-r-f-e-c-t-l-y!If the order was late. Or
wrong.Or if any of the goods are damaged in the
slightest.Or if youre just having a lousy day
and want to unload on someone Call our
Customer Care Hotline!
256
Beauty Contest!1. Pick one form/ document
invoice, airbill, sick leave policy, returns
claim form.2. Rate it on a 1 to 10 scale (1
Awful 10 Scintillating) on three dimensions
Beauty, Grace, Clarity. 3. Repeat every 15
days.
257
WEB Words TPNO CLUTTER!
258
No Clutter! CNNSI.com developed an increasingly
common problem. In the midst of adding material,
its design went bad. CNNSI became so packed with
links, new sections and graphics that it actually
became hard to find something as basic as the
score of last nights ballgame. Then it got
worse. The team tried to make new graphic
elements eye-catching enough to stand out from
the sites clutter. But the surfers ignored them,
thinking they were ads.Business Week 9-99
259
When you click on Yahoo! today you get the same
simple, nearly graphics-free home page you would
have seen had you clicked three years
ago.Fortune, on Zod Nazem, Yahoo! CTO
260
EVP,S.O.U.B.
261
Huge Opportunities That Damn Few Are
Pursuing!Women!The rapidly aging
population!Design!
262
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
263
Brand OutsideStrategy 5Its the Experience!
264
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
265
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
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
266
Safe, On Time and We defined personality as a
market niche. We seek to amuse, to surprise, to
entertain.Herb Kelleher, Main Man, LUV
Airlines
267
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
268
Mantra Any good can be ing-edthe driving
experiencethe pumping experiencethe sitting
experiencethe reading experiencethe washing
experiencethe cooking experienceJoseph Pine
James Gilmore, The Experience Economy Work Is
Theater Every Business a Stage
269
This is the end of the pure product era. For
instance, car makers are beginning to understand
that the car is a platform for delivering
services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
270
Marketing Aestheticsmanaging aesthetics
experiences aesthetics strategy marketing
of sensory experiences that contribute to the
organizations or brands identity mapping
strategic vision to sensory stimuliSource
Marketing Aesthetics, Bernd Schmitt Alexander
Simonson
271
Look Feel Taste Touch Sound Smell
Texture Color Typeface Etc. EXPERIENCE
Bernd Schmitt Alexander Simonson,
Marketing Aesthetics
272
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
273
Brand OutsideBRAND POWER!
274
Brand DefinedDistinctionExcellenceEmotional
SignatureTrustworthinessConsistencyShorthand
275
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
276
No Room for Brands?NikeSaturnCNNAmerica
OnlineCharles SchwabStarbucksThe GapIntelEtc.
277
Brand Trust!Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but Intel Inside has become a
trust mark - a trademark that consumers put
their faith in.The Economist
278
Branding is not a problem if you have the right
mentality. You go to your team and you pin up a
200 Swiss Army Watch. Competing in the
ridiculously crowded sub-200 watch market, they
made it into a brand name, named after the most
irrelevant and useless thing in history the
Swiss Army. And you say, Gang, if they can do
it, we can do it. Barry Gibbons
279
Salt is salt is salt. Right? Not when it comes
in a blue box with a picture of a little girl
carrying an umbrella. Morton International
continues to dominate the U.S. salt market even
though it charges more for a product that is
demonstrably the same as many other products on
the shelf.Tom Asaker, Humanfactor Marketing
280
Calling the Corporate Shrink!Organizational
Psychotherapy/WHO WE ARE!
281
Brand You Must Care!Success means never
letting the competition define you. Instead you
have to define yourself based on a point of view
you care deeply about. Tom Chappell, Toms of
Maine
282
Scott Bedbury/ Nike, StarbucksA Great Brand
taps into emotions. Emotions drive most, if not
all, of our decisions. A brand reaches out with
a powerful connecting experience. Its an
emotional connecting point that transcends the
product.A Great Brand is a story thats never
completely told. A brand is a metaphorical story
that connects with something very deep - a
fundamental appreciation of mythology. Stories
create the emotional context people need to
locate themselves in a larger experience.
283
Consumers dont simply buy products, they buy
attitudes as well. When confronted with
proliferation and diversity, choices become
increasingly informed by belief. Consumers want
to know who is behind the products that they buy.
They want to know the company. They want to know
what you think.Jesper Kunde, Corporate
Religion
284
Corporate Religion is a completely new way of
thinking about companies. Today, the product is
still the main communication highway in the
company. When companies make the shift to selling
solutions, brands and attitudes communicating
the companys attitudes and values becomes the
decisive parameter for success. It demands that
you find out who you are as a company.Jesper
Kunde, Corporate Religion
285
In the funky village, real competition no longer
revolves around marketshare. We are competing for
attention mindshare and heartshare.Kjell
Nordstrom and Jonas Ridderstrale, Funky Business
286
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
287
The Ten Rules of Radical MarketingCEO must
own the marketing function!Hyper-lean Mktg.
Dept. (No filters!)CEO hangs out with
customers!Love Respect your customers!Just
Say No to market research!Hire only passionate
missionaries!Create a Community of
users-customers!Emphasize one-to-one marketing
tools!Celebrate craziness!Be insanely True to
the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
288
Brand LeadershipLead Out Loud!
289
Message BrandsonLive the Brand!
290
ENTHUSIASM RULES!I am a dispenser of
enthusiasm./ Ben Zander
291
If you want to be persuasive, you have to
generate a high level of energy. Its energy that
makes you visible, that gives you presence. I
call it performance energy, and its the basis
of dynamic leadership. There is nothing
artificial about it. Performance energy is an
authentic part of who you are. You just have to
access it.Martha Burgess, Theater Techniques
for Business People
292
Ann Richards DogmaShow up!Know your
message!PUT YOURSELF AT RISK!
293
(Personal) Accountability?!WHERE WERE YOU
DURING THE GREAT ENTERPRISE REVOLUTION OF Y2K?
294
How sweet it is!
295
If you ask me what I have come to do in this
world, I who am an artist, I will reply, I am
here to live my life out loud.Emile Zola
296
Id rather regret the things I have done than
the things I have not.Lucille Ball
297
If things seem under control, youre just not
going fast enough.Mario Andretti
298
THE END