Tom Peters

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Tom Peters 2002 We Are In A Brawl With No
Rules!MASTER/01.01.2002
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All Slides Available at tompeters.com
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More at tompeters.comSlides from this
seminarMaster Presentation, for in-depth
annotated Special Presentations Women Rule!,
Design!, etc..Cool Friends (referenced in
seminar).Discussions re this stuff.Calendar of
events. Note Lavender text in this file is a
link.
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Confusion Reigns.
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There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
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Uncertainty We dont know when things will get
back to normal.Ambiguity We no longer know
what normal means.
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BMcC (1) Hierarchy vs. Network organization.
(2) NWO Doctrine as center of gravity/source
of motivation distributed support
decision-makinglargely self-organizing outside
the military sphere.
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Per capita scientists 12,000-60,000 per
1,000,000 in developed world. 1 per 4,000,000 in
Muslim countries. (Ratio 144,0001) Source
FT 20Oct2001
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From Weapon v. Weapon To
Org structure v. Org structure
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Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
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In an era when terrorists use satellite phones
and encrypted email, US gatekeepers stand armed
against them with pencils and paperwork, and
archaic computer systems that dont talk to each
other.Boston Globe (09.30.2001)
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One of the 19 hijackers was stopped by a
Maryland state trooper before September 11 but
was released because the trooper had no way of
knowing the man was on a CIA terrorist watch
list. Source AP (12.12.2001)
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Per capita scientists 12,000-60,000 per
1,000,000 in developed world. 1 per 4,000,000 in
Muslim countries. (Ratio 144,0001) Source
FT 20Oct2001
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lt1000A.D. paradigm shift 1000s of years1000
100 years for paradigm shift1800s gt prior 900
years1900s 1st 20 years gt 1800s2000 10 years
for paradigm shift 21st century 1000X tech
change than 20th century (the Singularity, a
merger between humans and computers that is so
rapid and profound it represents a rupture in the
fabric of human history)Ray Kurzweil
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1 day 2001 Years trade in 1949, years FEX in
1979, years global calls in 1984. Source
Charles Handy, The Elephant and the Flea
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7 Rules for Leading/THRIVING in a
Recession1. Its ALREADY too late.2. Show up
tell the truthCREDIBILITY rules.3. Kill with
KINDNESS.4. Sharp pencils are imperativebut
dont forget that the CUSTOMER our TALENT
RISKY INVESTMENTS are still our long-term
Bread Butter. 5. Everythings different,
everythings the sameits the NEW ECONOMY,
more than ever, stupid!6. Use the trauma to
mount the bold initiatives you should have
long before mounted Flux OPPORTUNITY.7.
Were in a War of Organizational Modelsfrom
retail to the Pentagon. IDEAS MATTER MOST.
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SWA American Continental Delta Northwest
United USAirways.Source Boston Globe
(12.22.2001)
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The Destruction Imperative.
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 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
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Message Are all CEOs bozos? Was Darwin a
genius, or what? So, Boss, whaddaya say about
risk taking now?And all that (2 of 100 12
of 500) was in relatively placid times.
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CEOs appointed after 1985 are 3X more likely to
be fired than CEOs appointed before 1985Warren
Bennis, MIT Sloan Management Review
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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 Innovators Dilemma
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A pattern emphasized in the case studies in this
book is the degree to which powerful competitors
not only resist innovative threats, but actually
resist all efforts to understand them, preferring
to further their positions in older products.
This results in a surge of productivity and
performance that may take the old technology to
unheard of heights. But in most cases this is a
sign of impending death.Jim Utterback,
Mastering the Dynamics of Innovation
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The 1990s was a decade of multiple
revolutionspolitical, economic,
technologicalthat changed so thoroughly the way
we live that the past no longer seems a good
guide to the future (in fact the past seems
precisely the wrong guide). So it is in the world
of military affairs. The RMA is our opportunity
to use the new information technology to change
the very nature of the militaryin a way that
could reinvigorate American political, diplomatic
and economic leadership in the world for decades
to come. Bill Owens, Lifting the Fog of War
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ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
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Japans Science Gap Rice farming culture
Uniqueness suppressed. Govt control of R D.
Promotion based on seniority. Consensus vs.
debate. (U.S. friends can be mortal enemies.)
Bias for C.I. vs. bold leaps. Lack of
competition and critical evaluation (peer
review). Syukuro Manabe What we need to create
is job insecurity rather than security to make
people compete more.Hideki Shirakawa, Nobel
laureate, chemistry
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The New Ge WayDYB.com
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
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Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
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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 DAveni,
Hypercompetition Managing the Dynamics of
Strategic Maneuvering
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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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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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Lessons from the Bees!Since merger mania is
now the rage, what lessons can the bees teach us?
A simple one Merging is not in nature.
Natures process is the exact opposite one of
growth, fragmentation and dispersal. There is no
megalomania, no merging for mergings sake. The
point is that unlike corporations, which just get
bigger, bee colonies know when the time has come
to split up into smaller colonies which can grow
value faster. What the bees are telling us is
that the corporate world has got it all
wrong.David Lascelles, Co-director of The
Centre for the Study of Financial Innovation UK
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Terror cells are superb, malevolent examples of
what Information Age organizations can be. So how
do you kill them? Soldiers used to idolize
Napoleon or Patton. Network-centric warriors
admire WalMart for using information
superiority to crush rivals. The Navys John
Arquilla calls for small, fast,
information-enabled units. Americas Secret
Weapon, Business 2.0 (DEC2001)
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A White Collar Revolution.
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108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
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The Pincer 51. Destructive
entrepreneurs/ Global Competition2.
White Collar Robots3. THE INTERNET!
E.g. GM Ford DaimlerChrysler4. Global
Outsourcing E.g. India, Mexico5.
Speed!!
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Automation75 of what we do 40 expert
decision rules!
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IBMs Project eLiza!
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Unless mankind redesigns itself by changing our
DNA through altering our genetic makeup,
computer-generated robots will take over the
world. Stephen Hawking, in the German magazine
Focus
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The Pincer 51. Destructive
entrepreneurs/ Global Competition2.
White Collar Robots3. THE INTERNET!
E.g. GM Ford DaimlerChrysler4. Global
Outsourcing E.g. India, Mexico5.
Speed!!
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So what does Drexels demise tell us about
Enron? Companies may die (or commit suicide), but
ideasif theyre any goodsurvive. James
Surowiecki, The New Yorker
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New Org I IS/IT On the Bus or Off the Bus.
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Dells OptiPlex FacilityBig Job 6 to 8
hours.(80,000 per day)Parts Inventory 100
square feet.
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Cisco!90 of 20B (50M/day)Annual savings
in service and support from customer
self-management 550M (P.S. C.Sat e gtgt C.Sat h)
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Secret Cisco Community!Customer Engineer
Chat Rooms/Collaborative Design (1B free
consulting) (45,000 customer problems a week
solved via customer collaboration)
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The Real News X1,000,000TowTruckNet.com
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Webcor. Construction. Web site for each project.
Instant info on status to employees, subs,
architects. Mgt costs cut by 2/3rds. Huge time
shrinkage.Source Business Week (09.00)
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Welcome to D.I.Y. Nation Changes in business
processes will emphasize self service. Your costs
as a business go down and perceived service
goes up because customers are conducting it
themselves. Ray Lane, Oracle
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Psych 101 Strongest Force on Earth?My need to
be in perceived control of my universe!
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WebWorld Everything Web as a way to run your
businesss innardsWeb as connector for your
entire supply-demand chain Web as spiders web
which re-conceives the industryWeb/B2B as
ultimate wake-up call to commodity
producersWeb as the scourge of slack,
inefficiency, sloth, bureaucracy, poor customer
dataWeb as an Encompassing Way of LifeWeb
Everything (P.D. to after-sales)Web forces you
to focus on what you do bestWeb as entrée, at
any size, to Worlds Best at Everything as next
door neighbor
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Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
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Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
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Translation Bureaucracy free Flat org, no
B.S.Systemically integrated Whole supply chain
tightly wired/ friction freeInternet intense
Do it all via the WebKnowledge based Open
accessTime and location free Whenever,
whereverInstantly responsive Speed
demonsCustomer centric Customer calls the
shotsMass customization enabled Every product
and service rapidly tailored to client
requirements
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Supply Chain 2000When Joe Employee at
Company X launches his browser, hes taken to
Company Xs personalized home page. He can
interact with the entire scope of Company Xs
world customers, other employees, distributors,
suppliers, manufacturers, consultants. The
browser that is, the portal resembles a My
Yahoo for Company X and hooks into every network
associated with Company X. The real trick is that
Joe Employee, business partners and customers
dont have to be in the office. They can log on
from a cell phone, Palm Pilot, pager or home
office system.Red Herring (09.2000)
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The Real New EconomyImagine a chess game in
which, after every half dozen moves, the
arrangement of the pieces on the board stays the
same but the capabilities of the pieces randomly
change. Knights now move like bishops, bishops
like rooks Technology does that. It rubs out
boundaries that separate industries. Suddenly new
competitors with new capabilities will come at
you from new directions. Lowly truckers in brown
vans become geeky logistics experts. Business
2.0 (9-10.2001)
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The Real New EconomyOnly a few times in
history have interaction costs radically
changedone was the railroads, then the telegraph
and telephone. Were going through another one
right now.Jeff Skilling, Enron
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Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
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Case CRM
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UBIQUITY! Its the cars, not the tires, that
squeal NYT/Circuits/10.25.01) E-ZPass (6M in
NE), tests with McDs, gas stations and parking
lots next. OnStar (GM/1.5M). Plus black
boxes, GPS (the case of the 450 ticket), CA
smog offenders.
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CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
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No! No! No! FT The aim of CRM is to make
customers feel as they did in the pre-electronic
age when service was more personal. Rebuttal
(1) Service sucked in the pre-electronic age.
(2) NewGen believes in the screen! (So do I.)
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One Persons OpinionTP to reporter Service
is MUCH better! Would you go back to bank
tellers and phone operators? Value that I place
on a smile 3 on a scale of 10. Value I place
on fast accurate digital response 11 on a
scale of 10!!
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M. Rogers -5 defections 25 to 85 profit.
Lose 15 to 35 p.a. 69 defect as a result
of lousy sales or service experience. (QBut is
this the point???? A Yes. No.)
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CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
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Message CRM Madness 600 CRM vendors. ???
Do it all or do something. Past
over-invest in low-value customers. Idea
better experience, not off-load work to customer.
Relationship f(dialogue knowledge
duration). Key new attitudes, DESTRUCTION of
functional barriers to info action.
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Inet allows you to dream dreams you could
never have dreamed before!
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Theres no use trying, said Alice. One cant
believe impossible things. I daresay you
havent had much practice, said the Queen. When
I was your age, I always did it for half an hour
a day. Why, sometimes Ive believed as many as
six impossible things before breakfast.Lewis
Carroll
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Suppose, just suppose, that the Web is a new
world were just beginning to inhabit. Were like
the earlier European settlers in the United
States, living on the edge of the forest. We
dont know whats there and we dont know exactly
what we need to do to find out Do we pack
mountain climbing gear, desert wear, canoes, or
all three? Of course while the settlers may not
have known what the geography of the new world
was going to be, they at least knew that there
was a geography. The Web, on the other hand, has
no geography, no landscape. It has no distance.
It has nothing natural in it. It has few rules of
behavior and fewer lines of authority. Common
sense doesnt hold here, and uncommon sense
hasnt yet emerged. David Weinberger, Small
Pieces Loosely Joined
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New Org II PSF The Professional Service Firm
Model.
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So what will be the Basic Building Block of the
New Org?
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Every job done in W.C.W. is also done outside
for profit!
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Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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P.S.F. SummaryH.V.A. Projects (100)Pioneer
ClientsWOW Work (see below)Hot Talent (see
below)Adventurous cultureProprietary Point
of View (Methodology)W.W.P.F. (100)/Outside
Clients (25)
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TP to NAPM You are the Rock Stars of the
B2B Age!
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P.S.F. SummaryH.V.A. Projects (100)Pioneer
ClientsWOW Work (see below)Hot Talent (see
below)Adventurous cultureProprietary Point
of View (Methodology)W.W.P.F. (100)/Outside
Clients (25)
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BMWs Designworks/USA gt50 from outside work
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eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
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Model PSF
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(1) Translate ALL departmental
activities into discrete W.W.P.F.
Products.(2) 100 go on the Web.(3)
Non-awesome are outsourced (75??).(4)
Remaining Centers of Excellence are
retained leveraged to the hilt!
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New Org III PSF Unbound the Heart of the
Value-added Revolution.
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Animating Force The Sameness Trap
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While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, working in similar jobs,
coming up with similar ideas, producing similar
things, with similar prices and similar
quality.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
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Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
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10X/10X
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The Big Day!
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
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These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
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HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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Customer Satisfaction to Customer
SuccessWere getting better at Six Sigma
every day. But we really need to think about the
customers profitability. Are customers bottom
lines really benefiting from what we provide
them?Bob Nardelli, GE Power Systems
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Keep In Mind Customer Satisfaction versus
Customer Success
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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 4.5M Ford
vehicles, from 21 mfg. sites to 6,000 NA dealers)
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New Springs TurnkeyCollections.Flexible
sourcing.Packaging.Merchandising.Promotion.Sys
tems Site mgt.
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Omnicom 57 (of 6B) from marketing services
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Who was the number one employer of architecture
school grads in the U.S. last year?
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We are a real estate facilities consulting
organization, not just an interior design
firm.Jean Bellas, founder, SPACE (from SMPS
Marketer)
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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.
New York Times (12.16.2001)
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Problem Everybody is going after the same space!
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Assetless CompanyJohn Bryan, CEO, on selling
all Sara Lees manufacturing
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Dont own nothin if you can help it. If you
can, rent your shoes.F.G.
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Better Red than Dead?/Better Dead than Red?We
will see more and more outsourcing of discovery
processes.Craig Venter
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Pfizer 1,000 projects with academics and
biotechs. Novartis 30 of RD is via
collaborations.
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Better Red than Dead?/Better Dead than Red?If
we completely outsourced all of our genetic
analysis, wed be held hostage by outside
people. Brian Spear, Director of
Pharmacogenomics, Abbott Labs
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NC2001 Furniture company outsources all mfg. to
Asian firm. Asian firm gets financing, buys NC
company. Hmmm!!??
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The move toward outsourced manufacturing
represents an obvious opportunity for contract
manufacturers such as Flextronics 93M to 15B,
93-00, but its also a potential boon to
product innovation. The future of gadget-making
is not about making gadgets its 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
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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
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Bottom Line The Solutions Imperative
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1. Its 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.
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11. All functions contribute equallyIS, 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 CUSTOMER- PARTNER.)16. We
use the word PARTNER until we all want to
barf!17. We NEVER BLAME other parts of our
organization for screw-ups.18. WE AIM TO
REINVENT THIS INDUSTRY!19. We hate the word-idea
COMMODITY.
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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!
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PSF Unbound Its the EXPERIENCE.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
119
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
120
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
121
The Experience LadderExperiences
ServicesGoods Raw Materials
122
1940 Cake from flour, sugar (raw materials
economy) 1.00 1955 Cake from Cake
mix (goods economy) 2.00 1970
Bakery-made cake (service economy) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
123
Message Experience is the Last 80P.S.
Experience applies to all work!
124
1940 Cake from flour, sugar (raw materials
economy) 1.00 1955 Cake from Cake
mix (goods economy) 2.00 1970
Bakery-made cake (service economy) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
125
Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
126
The Experience LadderExperiences
ServicesGoods Raw Materials
127
Ladder Position MeasureSolutions
SuccessServices SatisfactionGoods
Six-sigma
128
Sales2002.
129
The Sales25 Great Salespeople 1.
Know the product. (Find cool mentors, and use
them.)2. Know the company.3. Know the customer.
(Including the customers consultants.) (And
especially the corporate culture.)4. Love
internal politics at home and abroad.5.
Religiously respect competitors. (No badmouthing,
no matter how provoked.)6. Wire the customers
org. (Relationships at all levels
functions.)7. Wire the home teams org. and
vendors orgs. (INVEST Big Time time in
relationships at all levels functions.) (Take
junior people in all functions to client
meetings.)
130
Great Salespeople 8.
Never overpromise. (Even if it costs you your
job.) 9. Sell only by solving problems-creating
profitable opportunities. (Our product solves
these problems, creates these unimagined
INCREDIBLE opportunities, and will make you a ton
of moneyheres exactly how.) (IS THIS A
PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL
BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE
WRITTEN UP IN THE TRADE PRESS?)10. Will involve
anybodyincluding mortal enemiesif it enhances
the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.11. Know the Brand Story cold live
the Brand Story. (If not, leave.)
131
Great Salespeople 12.
Think Turnkey. (Its always your problem!)13.
Act as orchestra conductor You are responsible
for making the whole-damn-network respond.
(PERIOD.)14. Help the customer get to know the
vendors organization build up their
Rolodex.15. Walk away from bad business. (Even
if it gets you fired.)16. Understand the idea of
a good loss. (A bold effort thats sometimes
better than a lousy win.)17. Think those who
regularly say Its all a price issue suffer
from rampant immaturity shrunken
imagination.18. Will not give away the store to
get a foot in the door. 19. Are wary
respectful of upstartsthe real enemy.20. Seek
several cool customerswholl drag you into
Tomorrowland.
132
Great Salespeople
21. Use the word partnership obsessively,
even though it is way overused. (Partnership
includes folks at all levels throughout the
supply chain.)22. Send thank you notes by the
truckload. (NOT E-NOTES.) (Most are for little
things.) (50 of those notes are sent to those
in our company!) Remember birthdays. Use the word
we. 23. When you look across the table at the
customer, think religiously to yourself HOW CAN
I MAKE THIS DUDE RICH FAMOUS GET HIM-HER
PROMOTED? 24. Great salespeople can
affirmatively respond to the query in an HP
banner ad HAVE YOU CHANGED CIVILIZATION
TODAY?25. Keep your bloody PowerPoint slides
simple!
133
Re-inventing the Individual Ahoy BRAND YOU.
134
2010 DemographicsBy 2010, full-time workers
will be in the minoritySource MIT study
(28August2000)
135
New World of Worklt 1 in 10 F5001 Manpower
Inc.Freelancers/I.C. 16M-25MTemps 3M (incl.
CEOs lawyers)Microbusinesses 12M-27MTotal
31M-55MSource Daniel Pink, Free Agent Nation
136
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

137
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
138
Minimum New Work SurvivalSkillsKit2001MasteryRo
lodex Obsession (vert. to horiz.
loyalty)Entrepreneurial InstinctCEO/Leader/Bus
inessperson/CloserMistress of ImprovSense of
HumorIntense Appetite for TechnologyGroveling
Before the YoungEmbracing MarketingPassion
for Renewal
139
Sams Secret 1!
140
Minimum New Work SurvivalSkillsKit2001MasteryRo
lodex Obsession (vert. to horiz.
loyalty)Entrepreneurial InstinctCEO/Leader/Bus
inessperson/CloserMistress of ImprovSense of
HumorIntense Appetite for TechnologyGroveling
Before the YoungEmbracing MarketingPassion
for Renewal
141
You must realize that how you invest your human
capital matters as much as how you invest your
financial capital. Its rate of return determines
your future options. Take a job for what it
teaches you, not for what it pays. Instead of a
potential employer asking, Where do you see
yourself in 5 years? youll ask, If I invest my
mental assets with you for 5 years, how much will
they appreciate? How much will my portfolio of
career options grow? Stan Davis Christopher
Meyer, futureWEALTH
142
My ancestors were printers in Amsterdam from
1510 or so until 1750, and during that entire
time they didnt have to learn anything
new.Peter Drucker, Business 2.0 (08.22.00)
143
Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is
the No. 1 industry in the next 30 years mostly
on line.Peter Drucker,Business 2.0
(22August2000)
144
E-LEARNING 2M students in U.S. 4,000 colleges
universities offer. Target Developing world.
E.g. U. of Melbourne McGill, part of U21 (with
Thompson Learning), expect 100K students by
2010mostly Asians. Armys 500M contract with
PWC (eArmyU)includes degrees _at_ 24 colleges.
Mixed models Fuqua9 to 11 weeks in residence
over 2 years. Dentist gets law degree25 to 30
hours per week. IBM trained 200K online in
2000saved 350M. Tricks Small classes,
required student involvement at U. of Phoenix
Online (76 growth in Y2K.). Source Business
Week (12.03.2001)
145
26.3
146
3 Weeks in MayTraining Prep 187Work
41(Other 17)
147
1 vs. 367
148
Divas do it. Violinists do it. Sprinters do it.
Golfers do it. Pilots do it. Soldiers do it.
Surgeons do it. Cops do it. Astronauts do it. Why
dont businesspeople do it very much?
149
Conclusion We are not serious!
150
Invent. Reinvent. Repeat.Source HP banner ad
151
The time seems appropriate to rethink the
notions of self and identity in this rapidly
changing age Tara Lemmey, Project LENS, past
president Electronic Frontier Foundation
152
In Store International Equality, Intranational
InequalityThe new organization of society
implied by the triumph of individual autonomy and
the true equalization of opportunity based upon
merit will lead to very great rewards for merit
and great individual autonomy. This will leave
individuals far more responsible for themselves
than they have been accustomed to being during
the industrial period. It will also reduce the
unearned advantage in living standards that has
been enjoyed by residents of advanced industrial
societies throughout the 20th century.James
Davidson William Rees-Mogg,The Sovereign
Individual
153
Great Great Granddad Pushes the plow.Great
Granddad Horse now walks ahead of the
plow.Granddad Farm Hand to Factory
Factotum.Dad Factory Factotum to White Collar
Cubicle Slave.And You V.A. Player (Brand You)
or else!
154
Americans The Beautiful Re-inventorsBen
F.Ralph W.E.Dale C.N.V.P. Werner E./ESTTony
R.Stephen
155
Brand You, Big Time!I AM AN ARMY OF ONE
156
Message Distinct or Extinct.
157
Brand You a New Age of Self-determination.
(Trends I Health Care Center Stage.)
158
Parents, doctors, stockbrokers, even military
leaders are starting to lose the authority they
once had. There are all these roles premised on
access to privileged information. What we are
witnessing is a collapse of that advantage,
prestige and authority.Michael Lewis, next
159
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
160
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
161
Reuters (12.11.01) Teens and young adults are
flocking to the Web for health-related
information as much as they are downloading music
and playing games online and more often than
shopping online, according to a national survey
from the Kaiser Family Foundation.
162
One in Four Internet Users Seek Religious
InformationReuters (12.24.2001) (God trumps
money, sex.)
163
Impact 1 Healthcare
164
HealthCare2001Consumerism X Demographics X
IS/Internet X Info Consolidators X Genetics
Devices YIKES!
165
1. Consumerism (Patient-centric Healthcare)
166
A seismic shift is underway in healthcare. The
Internet is delivering vast knowledge and new
choices to consumersraising their expectations
and, in many cases, handing them the controls.
Healthcare consumers are driving radical,
fundamental change.Deloitte Research, Winning
the Loyalty of the eHealth Consumer
167
Reuters (12.11.01) Teens and young adults are
flocking to the Web for health-related
information as much as they are downloading music
and playing games online and more often than
shopping online, according to a national survey
from the Kaiser Family Foundation.
168
Consumer ImperativesChoiceControl (Self-care,
Self-management)Shared Medical
Decision-makingCustomer ServiceInformationBrand
ingSource Institute for the Future
169
Consumerism HMO backlash (e.g., plans with
more choice). Alternative Medicine, Wellness
Prevention. Info availability (disease, health,
docs, support groups, outcomes). Self-care
(chronic disease). High expectations (genetics,
etc.). Boomers (see below).
170
Savior for the Sickvs. Partner for Good
Health Source NPR/VPR 08.15.00
171
He shook me up. He put his hand on my shoulder,
and simply said, Old friend, you have got to
take charge of your own medical care.
Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal, following
Jordans cancer diagnosis)
172
2. Demographics The BOOMERS Reach 55!
173
Boomer WorldFrom jogging to plastic surgery,
from vegetarian diets to Viagra, they are
fighting to preserve their youth and defy the
effects of gravity.M.W.C. Howgill, Healthcare
Consumerism, the Information Revolution and
Branding
174
Message Boomer (1) There are l-o-t-s of us.
(2) We have the . (3) Were/Im in
charge! (4) Well take no guff from anyone.
(5) We know the emperor has no clothes.
175
3. The IS/Web REVOLUTION
176
Were in the Internet age, and the average
patient cant email their doctor.Donald
Berwick, Harvard Med School
177
In an era when terrorists use satellite phones
and encrypted email, US gatekeepers stand armed
against them with pencils and paperwork, and
archaic computer systems that dont talk to each
other.Boston Globe (09.30.2001)
178
Once devised in Riyadh, the tasking order took
hours to get to the Navys six aircraft
carriersbecause the Navy had failed years
earlier to procure the proper communications gear
that would have connected the Navy with its Air
Force counterparts. To compensate for the lack
of communications capability, the Navy was forced
to fly a daily cargo mission from the Persian
Gulf and Red Sea to Riyadh in order to pick up a
computer printout of the air mission tasking
order, then fly back to the carriers, run
photocopy machines at full tilt, and distribute
the documents to the air wing squadrons that were
planning the next strike. Bill Owens, Lifting
the Fog of War
179
By combining powerful computer technology and
other modern information-based systems we could
make a revitalized, leaner military force that is
designed to outsee, outmaneuver and outfight any
foe. --Bill Owens, Lifting the Fog of War
180
Without being disrespectful, I consider the U.S.
healthcare delivery system the largest cottage
industry in the world. There are virtually no
performance measurements and no standards. Trying
to measure performance is the next revolution
in healthcare.Richard Huber, former CEO, Aetna
181
As unsettling as the prevalence of inappropriate
care is the enormous amount of what can only be
called ignorant care. A surprising 85 of
everyday medical treatments have never been
scientifically validated. For instance, when
family practitioners in Washington were queried
about treating a simple urinary tract infection,
82 physicians came up with an extraordinary 137
strategies.Demanding Medical Excellence
Doctors and Accountability in the Information
Age, Michael Millenson
182
In health care, geography is destiny.Dartmouth
Medical School 1996 report, from Demanding
Medical Excellence Doctors and Accountability in
the Information Age, Michael Millenson
183
Geography Is DestinyE.g. Ft. Myers 4X
Manhattanback surgery. Newark 2X New
Havenprostatectomy. Rapid City SD 34X Elyria
OHbreast-conserving surgery. VT, ME, IA 3X
differences in hysterectomy by age 70 8X
tonsillectomy 4X prostatectomy (10X Baton Rouge
vs. Binghampton). Breast cancer screening 4X NE,
FL, MI vs. SE, SW. (Source various)
184
Geography Is DestinyOften all one must do to
acquire a disease is to enter a country where a
disease is recognizedleaving the country will
either cure the malady or turn it into something
else. Blood pressure considered treatably high
in the United States might be considered normal
in England and the low blood pressure treated
with 85 drugs as well as hydrotherapy and spa
treatments in Germany would entitle its sufferer
to lower life insurance rates in the United
States. Lynn Payer, Medicine Culture
185
Practice variation is not caused by bad or
ignorant doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.Michael
Millenson, Demanding Medical Excellence
186
CDC 1998 90,000 killed and 2,000,000 injured
from nosocomial hospital-caused drug errors
infections
187
Quality of care is the problem, not managed
care.Institute of Medicine (from Michael
Millenson, Demanding Medical Excellence)
188
RAND (1998) 50, appropriate preventive care.
60, recommended treatment, per medical studies,
for chronic conditions. 20, chronic care
treatment that is wrong. 30 acute care treatment
that is wrong.
189
In a disturbing 1991 study, 110 nurses of
varying experience levels took a written test of
their ability to calculate medication doses.
Eight out of 10 made calculation mistakes at
least 10 of the time, while four out of 10 made
mistakes 30 of the time.Demanding Medical
Excellence Doctors and Accountability in the
Information Age, Michael Millenson
190
Patient by patient, problem by problemdrug
reactions, hospital caused infectionsSalt Lake
Citys LDS Hospital has attacked treatment-caused
injuries and deaths. One of the secrets of LDSs
success is a custom-built clinical computer
system that may serve as a national model for how
to save patient lives.Demanding Medical
Excellence Doctors and Accountability in the
Information Age, Michael Millenson
191
The VHA gets it! E.g. Laptop at bedside calls
up patient e-records from one of 1,300 hospitals.
Bar-coded wristband confirms meds. National
Center for Patient Safety in Ann Arbor. Docs
and researchers discuss optimal treatment
regimensresearch center in Durham NC. Doc
measures guidelines e.g., pneumonia
vaccinations from 50 to 84. Blame-free
system, modeled after airlines. Whats needed
in the U.S. is nothing short of a medical
revolution and the VHA has gone further than most
any other organization to revamp its culture and
systems.Rand/SourceWSJ 12.10.2001
192
When a plane crashes, they ask, What happened?
In medicine they ask Whose fault was it?
James Bagian, M.D. former astronaut, now
working with the VHA.
193
Winning By Acknowledging FailuresWernher Von
Braun, the Redstone missile engineer who
confessed the bottle of champagne. Award to
the sailor on the Carl Vinsonfor reporting the
lost tool. Amy Edmonson the successful nursing
units with the highest reported adverse drug
events.Source Karl Weick Kathleen Sutcliffe,
Managing the Unexpected
194
4. Information Consolidators The Network Maestros
195
America has twice as many hospitals and
physicians as it needs.Med Inc., Sandy Lutz,
Woodrin Grossman John Bigalke
196
The future of hospitals is murky. A combination
of technological advances, managed care, and
changes in Medicare reimbursement policy means
that the underlying demand for inpatient services
will continue to fall.Institute for the Future
197
Virtual health care webs force providers to
focus on their areas of excellence and to invest
in areas where they can generate a sustainable
competitive advantage.Healthcare.com Rx for
Reform, David Friend, Watson Wyatt Worldwide
198
WebMD (or heirs assigns)
199
5. Genetics Devices
200
Recognizing that a single misspelled gene means
the difference between being poisoned and being
cured was the first victory for the new science
of pharmacogenetics.Newsweek (06.25.01)
201
Genetic data 2X every 6 months.Source FT,
11.27.2001
202
Pharmacogenomics could fundamentally change the
nature of drug discovery and marketing, rendering
obsolete the pharmaceutical industrys practice
of spending vast amounts of time and money to
craft a single medicine with mass-market
appeal.The Industry Standard (05.28.01)
203
E.g., Genentechs Herceptin, useful in 25 of
advanced breast cancer cases. Would probably have
been uneconomic if subjected to 9X patients in
phase III clinical trials.Source FT (11.27.01)
204
Pharmacogenomics End of Blockbusters by
End-of-Decade (Reuters/5-22)Barrie James,
Pharma Strategy Consulting Were moving from a
blunderbuss approach to laser-guided munitions,
and it marks a sea change for the industry. The
implications for existing business models are
devastating. Allen Roses, SVP Genetic
Research, GlaxoSmithKline minibuster. Rob
Arnold, Euro head of life sciences, PWC Once
you start dealing with minority treatments, small
biotechs who are more nimble and dont need
500-million-a-year drugs to make money could be
at a real advantage.
205
BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS.
Most drugs dont work well for about half the
patients for whom they are prescribed, and
experts believe genetic differences are part of
the reason. The technology for genetic testing is
now in use. But the technique threatens to be so
disruptive to the business of big drug companies
it could limit the market for some of their
blockbuster products that many of them are
resisting its widespread use.The Wall Street
Journal (06.18.2001)
206
Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 are in 87
F100 the 18 F100 survivors underperformed the
market by 20 just 2 (2), GE Kodak,
outperformed the market from 1917 to
1987.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
207
Biotechs Amgen, Genentech, Biogen, Genzyme,
Celltech, ImClone Systems. Bioinformatics
Accelrys, Cognia, Double Twist, IBM Lifesciences,
NetGenics, SAS Institute.
208
Imagine the day that your surgeon performs your
heart bypass sitting at a computer thousands of
miles from the operating table. That day may come
sooner than you think.Newsweek (06.25.01)
209
There is no question in my mind that the future
of heart surgery is in robotics.Dr. Robert
Michler, OSU Med Center, upon the FDAs approval
of robotic partial-bypass surgery
210
Golden Age of Patient-centric, Genetics-driven
Healthcare Looms! Current status 1.3T. 30M-70M
uninsured. 90K killed and 2M injured p.a. in
hospitals. 85 treatments unproven. Cure depends
on locale in which treated. 50 prescriptions do
not work. 2X docs. 2X hospitals. IS primitive.
Accountability measurement nil. And everybodys
mad and feels powerless docs, patients, nurses,
insurers, employers, hospitals administrators and
staff.
211
Message (1) An unparalleled time for
imagination and bold action. (2) A time of
unprecedented opportunities. (3) A time of
unprecedented risk.
212
Trends II Welcome to Old World.
213
Age Power will rule the 21st century, and we
are woefully unprepared.Ken Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
214
Subject Marketers StupidityIts 18-44,
stupid!
215
Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
216
2000-2010 Stats18-44 -155 21(55-64
47)
217
NOT ACTING THEIR AGE As Baby Boomers Zoom into
Retirement, Will America Ever Be the
Same?USNWR Cover/06.01
218
Member Growth 1987 199718 34 2635
49 6350 118Source IHRSA
219
Aging/ElderlyIm in charge!
220
507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury610B
healthcare spending/74 prescription drugs5 of
advertising targetsKen Dychtwald, Age Power
How the 21st Century Will Be Ruled by the New Old
221
Stupid!
222
No Target MarketingYes Target Innovation
Target Delivery Systems
223
Redefining the Work Itself I The WOW Project.
224
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
225
Language matters! Wow! BHAG! Takes your breath
away!
226
Intimidate their users imaginations
Wheres the revolution? J Allard, on the Xbox
227
Lets make a dent in the universe.
Steve Jobs
228
Your Current Project?1. Another
days work/Pays the rent.4. Of value.7.
Pretty Damn Cool/Definitely subversive.10.
WE AIM TO CHANGE THE WORLD.
(Insane!/Insanely Great!/WOW!)
229
Learn not to be careful. Photographer Diane
Arbus, to her students
230
Re-defining the Work Itself II WOW Projects for
the Powerless.
231
Topic Boss-free Implementation of STM /Stuff
That MATTERS!
232
Worlds Biggest Waste Selling Up
233
THE IDEA Model F4 Find a Fellow Freak Faraway
234
Heart of the MatterF2F!/K2K!/1_at_T/R.F!A.Fre
ak to Freak/Kook to Kook/One at a Time/
Ready.Fire!Aim.
235
THE NUGGETDo Something. Do Anything.Get
Going.Now.
236
Opportunity ALWAYS Knocks VFCJ
StrategyVolunteer For Crappy Jobs
237
Is It The Oh-Hell-I-Wish-It-Were-Over
Memorial Day picnicor The First Annual
Seriously Kewl Celebration of Our Incredible
Staff
238
Is It Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?Or A
stealth opportunity to address the War for Talent
via a thoroughgoing review of how safety and
environmental issues contribute to making this a
Great Place to Work?
239
Reframers RulesRule 1 Never accept an
assignment as given! (Please.)Rule 2 Youre
never so powerful as when you are
powerless!Rule 3 Every small project
contains the entire enterprise DNA!
240
THE TOOLPrototyping Mania!
241
Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
242
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
243
THE ProcessBuilding Buzz!
244
Boss-free Selling of a WOW! IdeaGet a Zany
WOW! Idea/Shop it with a coupla good
pals.Surface using your network a list of
operational folks who might be interested in
playing.Call, visit and choose a coupla
prospects.Engage the prospects they must own
it.Concoct a rough plan and a prototype
schedule. Move forward Ready. Fire! Aim..Keep
on recruitin.Get the Test Customer to recruit
some buddies for Round 2 tests Meanwhile
Customer 1 expands program
245
Get going with Round 2 prototypesStart
conscious buzz building Let the word of
successful tests trickle outHave the line
dudes put on a demo for, say, a coupla cool
regional bossesEtc.Etc.Have the growing
Network of Converts initiate a Major Program
ProposalEtc.Etc.
246
BOTTOM LINEThe Enemy!
247
Joe J. Jones 1942 2001 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
248
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
249
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
250
Message to scientists It AINT about the
science. Its NEVER about the science. Its
ALWAYS about the PASSION for the IDEA.
251
In a long and honorable career, a Ph.D.
scientist in a pharmaceutical house is not likely
statistically to experience a
success.Pharmaceutical Exec
252
Statistically speaking, Churchill shouldnt
have been able to fend off Hitler. Statistically
speaking, de Gaulle shouldnt have been able to
revive the French. Statistically speaking,
Jefferson Adams Hamilton shouldnt have been
able to create America.
253
I wonder
254
Will one of you be awoken some December
morning in Stockholm by candle-carryingkids?
255
If you are not prepared to be fired over your
beliefs you are working on the wrong project -
TP
256
Charles Handy on the alchemists Passion was
what drove these people, passion for their
product or their cause. If you care enough, you
will find out what you need to know. Or you will
experiment and not worry if the experiment goes
wrong. Passion as the secret to learning is an
odd secret to propose, but I believe that it
works at all levels and at all ages. Sadly,
passion is not a word often heard in the elephant
organizations, nor in schools, where it can seem
disruptive.
257
John Jumper and Predator, the armed unmanned
drone.
258
Walsh Heightshrimp. Armokay. Quicknessokay.
Speedslow. ZealPLANET CLASS. People cant
measure your heart. They look at my size, my arm
strength and knock me for thatJeff Garcia.
Source USA Today, 11.23.2001
259
Re-defining the Work Itself III Starting a Wow
Projects Epidemic.
260
Premise Ordering Systemic Change is a Stupid
Waste of Time!
261
Demos! Heroes! Stories!
262
Demos! Heroes! Stories!
263
L.B.I.W.D. (Leading By Inducing Weird Demos)
264
Leaders aiming to change their world troll for
identify palpable heroes, who executed palpable
projectsthen they point to these people and say
to the masses, See, here it is, done by one of
your own. (And then they deep-dip a few of
those heroes to demo their seriousness.)
265
Trolling for radicals. ER Doc Ken Kizer (former
VA Undersecretary) Spots patient wrist band
during 1998 visit to Topeka. Finds RN Sue
Kinnick. (Shed gotten the idea from Avis.) Kizer
orders systemic experiment. 170 hospitals by
09.2000. Topeka 70 reduction in meds errors.
266
Demos! Heroes! Stories!
267
Demo StoryA key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner, Leading Minds An
Anatomy of Leadership
268
MBSA!Managing By Story-ing Around/David
Armstrong
269
Boss Advice I The Poster Kids StrategyChat
up the organization. Develop a tentative list of
Pioneers.Hang with those Pioneers, discover the
stuff Ive long wanted to do/Encourage them
to Do it!Begin to showcase their developing
results with your public stamp of approval.
Dip deepish and early - promote a Pioneer into
the New Establishment.Incorporate the
Pioneers work into your Vision Chatter/Welcome
ALL aboard!
270
Boss Advice II The Flypaper StrategyEvent
Marketing Idea Fair/Internal Tradeshow/Bragfes
t. Or Seminar Series, with strange
outsiders/insiders (not the usual suspects)
intense Web-based follow-up and community
creation (Neighborhoods of Common
Interest).Play Fund, around a topic of
importance. Small-ish grants. Easy applicati