Title: Tom Peters
1 Tom Peters New Business2002 Rules for
Re-inventionNewBus/v06.10.2002
2All Slides Available at tompeters.comNote
Lavender text in this file is a link.
3NEW BUSINESS. NEW CONTEXT.
4All Bets Are Off.
5There 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
6lt1000A.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
7Way to Go, Guys 2002 write downs from recent
acquisitions
81,000,000,000,0001 trillion (Source
Harpers Index 04.2002)
9Business On The Ropes (5T) Dot-Com Mania
Enron Andersen Merrill Lynch AOL Time
Warner Bernie E.
10The Destruction Imperative.
11Forbes100 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
12Good 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
13ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
14When 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
15 Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
16Active 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
17CEOs appointed after 1985 are 3X more likely to
be fired than CEOs appointed before 1985Warren
Bennis, MIT Sloan Management Review
18The New Ge WayDYB.com
19Change the rules before somebody else does.
Ralph Seferian, VP, Oracle
20Most of our predictions are based on very linear
thinking. Thats why they will most likely be
wrong.Vinod Khosla, in GIGATRENDS, Wired
04.01
21The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
22The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
23RM A lot of companies in the Valley fail.RN
Maybe not enough fail.RM What do you mean
by that?RN Whenever you fail, it means
youre trying new things.Source Fast Company
24The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.Newsweek/ Paul Saffo
(03.02)
25Silicon Valley Success Failure?
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
26Axiom (Hypothesis) We have been screwed by
Benchmarking Best Practice C.I./Kaizen.
Axiom (Hypothesis) We need Masters of
Discontinuity/ Masters of Ambiguity in
discontinuous/ambiguous times.
27Organize for performance customer
satisfaction.Disorganize for renewal
innovation.
28Rose gardeners face a choice every spring how
to prune our roses. The long-term fate of a rose
garden depends on this decision. If you want to
have the largest and most glorious roses of the
neighborhood, you will prune hard. You will
reduce each rose plant to a maximum of three
stems. This represents a policy of low tolerance
and tight control. You force the plant to make
the maximum use of its available resources, by
putting them into the the roses core business.
However, if this is an unlucky year late frost,
deer, green-fly invasion, you may lose the main
stems or the whole plant! Pruning hard is a
dangerous policy in an unpredictable environment.
Thus, if you are in a spot where you know nature
may play tricks on you, you may opt for a policy
of high tolerance. You will leave more stems on
the plant. You will never have the biggest roses,
but you have a much-enhanced chance of having
roses every year. You will achieve a gradual
renewal of the plant. In short, tolerant pruning
achieves two ends (1) It makes it easier to cope
with unexpected environmental changes. (2) It
leads to a continuous restructuring of the plant.
The policy of tolerance admittedly wastes
resourcesthe extra buds drain away nutrients
from the main stem. But in an unpredictable
environment, this policy of tolerance makes the
rose healthier. Tolerance of internal weakness,
ironically, allows the rose to be stronger in the
long run.Arie De Geus, The Living Company
29Japans 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
30Jim Tom. Joined at the hip. Not.
31Built to Last v. Built to FlipThe problem with
Built to Last is that its a romantic notion.
Large companies are incapable of ongoing
innovation, of ongoing flexibility.Increasingl
y, successful businesses will be ephemeral. They
will be built to yield something of value and
once that value has been exhausted, they will
vanish.Fast Company (03-00)
32But what if former head of strategic planning
at Royal Dutch Shell Arie De Geus is wrong in
suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is
fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a
business organization, an artist, an athlete or a
stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of
time, rather than to live forever.Kjell
Nordström and Jonas Ridderstråle, Funky Business
33Warren Bennis Patricia Ward Biederman/
Organizing Genius Great Groups Dont Last Very
Long!
34W.A. Mozart 1756 1791 HE CHANGED THE
WORLD AND ENRICHED HUMANITY
35The difficulties arise from the inherent
conflict between the need to control existing
operations and the need to create the kind of
environment that will permit new ideas to
flourishand old ones to die a timely death. We
believe that most corporations will find it
impossible to match or outperform the market
without abandoning the assumption of continuity.
The current apocalypsethe transition from a
state of continuity to state of discontinuityhas
the same suddenness as the trauma that beset
civilization in 1000 A.D. Richard Foster
Sarah Kaplan, Creative Destruction (The
McKinsey Quarterly)
36Jane Jacobs Exuberant Variety vs. the Great
Blight of Dullness. F.A. Hayek Spontaneous
Discovery Process. Joseph Schumpeter the
Gales of Creative Destruction.
37NEW BUSINESS NEW TECH
38The White Collar Revolution.
39108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
40The coefficient of friction associated with the
grunge of business is amazing!Michael Schrage
41IBMs Project eLiza! Self-bootstrapping/
Artilects
42Deep Blue Redux 2,240 EKGs 1,120 heart
attacks. Hans Ohlin (50 yr old chief of coronary
care, Univ of Lund/SW) 620. Lars Edenbrandts
software 738.Only this time it matters!
43Most physicians believe that diagnosis cant be
reduced to a set of generalizationsto a
cookbook. How often does my intuition lead me
astray? The radical implication of the Swedish
study is that the individualized, intuitive
approach that lies at the center of modern
medicine is flawedit causes more mistakes than
it prevents. Atul Gawande, Complications
44Probable parole violations Simple model (age,
of previous offenses, type of crime) beats M.D.
shrinks. 100 studies Statistical formulas gt
Human judgment. In virtually all cases,
statistical thinking equaled or surpassed human
judgment.Atul Gawande, Complications
45Unless 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
46N.W.O./Holy Moly Unemployment up 2 real wage
growth highest since 60s productivity
soaring.Source BW/02.11.2002
47E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
48 IS/IT/Web On the Bus or Off the Bus.
49100 square feet
50Dells OptiPlex FacilityBig Job 6 to 8
hours.(80,000 per day)Parts Inventory 100
square feet.
51The Real News X1,000,000TowTruckNet.com
52Impact No. 1/ Logistics Distribution
WalMart Dell Amazon.com Autobytel.com
FedEx UPS Ryder Cisco Etc. Etc. Ad
Infinitum.
53Autobytel 400. WalMart 13.Source
BW(05.13.2002)
54? Americans on the Web/03.200250,000,00075,00
0,000100,000,000125,000,000150,000,000175,
000,000
55157,000,000 2M/mo.Source Newsweek
(03.25.2002)
56WebWorld 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
57Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
58Translation 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
59Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
60Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
61Ebusiness 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
62Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
63Theres 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
64Inet allows you to dream dreams you could
never have dreamed before!
65HUMANAs Dreams. Emphesys Put everything on the
Internet. CEO Mike McCallister, charge to
200-person outside Inet unit Imagine an
ideal Web-based health insurance system and then
create a product as close as possible to that
vision. Start with own employees SmartSuite.
Member employees Plan their own coverage and
shoulder more costs. Dell is model Fully
customized health for every individual.
Marketing pitch for employers Buy choice for
employees through a single sourceHumana.Source
Fortune/05.27.2002
66Supposejust supposethat 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
67 Words to Live By Hierarchy is an
organization with its face toward the CEO and its
ass toward the customer.Kjell Nordström and
Jonas RidderstrĂĄle, Funky Business
68Hyperlinks subvert hierarchy!The Cluetrain
Manifesto
69Case CRM
70Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
71Amen!The Age of the Never Satisfied
CustomerRegis McKenna
72The Web enables total transparency. People with
access to relevant information are beginning to
challenge any type of authority. The stupid,
loyal and humble customer, employee, patient or
citizen is dead.Kjell Nordström and Jonas
RidderstrĂĄle, Funky Business
73Parents, 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
74A 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
75Welcome 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
76Psych 101 Strongest Force on Earth?My need to
be in perceived control of my universe!
77UBIQUITY! 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.
78CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
79No! 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.)
80One 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!!
81M. 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.)
82CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
83Message 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.
84Wells Fargo (285B) Master of BC900M since
99. 3M. 1/3rd of chk acct customers on line.
5,400 branches 4 of 5 who do product research
on line purchase at branch. Wire transfer, save
30 17 less calls. Material diff to bottom
line.Source BW Online (03.20.02)
85NEW BUSINESS. NEW VALUE PROPOSITION.
86 The PSF SolutionThe Professional Service
Firm Model.
87So what will be the Basic Building Block of the
New Org?
88Every job done in W.C.W. is also done outside
for profit!
89Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
90TP to NAPM You are the Rock Stars of the
B2B Age!
91eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
92 Model PSF
93 (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!
94Typically in a mortgage company or financial
services company, risk management is an
overhead, not a revenue center. Weve become more
than that. We pay for ourselves, and we actually
make money for the company.Frank Eichorn,
Director of Credit Risk Data Management Group,
Wells Fargo Home Mortgage (Source sas.com)
95The PSF ProblemProfessionalism Arrogance
Pseudo-science. Hear no evil, see no evil,
dont rat out your peers Docs, Teachers,
Clergy (Law), Accts (Berardino)
96The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
97Base Case The Sameness Trap
98Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
99While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
100We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
101The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices and similar quality.Kjell Nordström
and Jonas RidderstrĂĄle, Funky Business
102Customers will try low cost providers
because the Majors have not given them any clear
reason not to.Leading Insurance Industry
Analyst
103SWA gt American Continental Delta Northwest
United USAirways.Source Boston Globe
(12.22.2001)
104Getting Beyond Lip Service!No longer are we
only an insurance provider. Today, we also
offer our customers the products and services
that help them achieve their dreams, whether its
financial security, buying a car, paying for home
repairs, or even taking a dream vacation.Martin
Feinstein, CEO, Farmers Group
105The Big Day!
10609.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
107These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
108Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
109Service-Systems Paradox Cut GrowAutomate
75 of commodity service activitiesand/butA
dd value via people-intensive strategic/systems-i
ntegration activities (E.g. Could Suns
service/sysint business be 60 of revenues?)
(Hiring from PWC, etc.)
110ATT President David Dorman Back to long
distance but with bundles of lucrative
corporate services for the likes of Merrill
Lynch, MasterCard, Hyatt. Consumer Dump 25M
subscribers (50)hold on to high
enders.Source BW/05.20.2002
111We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
112Customer 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
113Keep In Mind Customer Satisfaction versus
Customer Success
114Was Big Iron Transformer Dudes Division. Is
Air Traffic Controllers of Electrons.
115Was Bunch of Guys Who Make Circuit Breakers
Division. Is GE Industrial Systems.
116UPS 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)
117New Springs TurnkeyFlexible
sourcing.Collections.Packaging.Merchandising.P
romotion.Systems Site mgt.
118No longer are we only an insurance provider.
Today, we also offer our customers the products
and services that help them achieve their dreams,
whether its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
119Our mission is to go from being the worlds
premier timesharewhich is a large idea in a
small industryto being what we call the market
makers for global travel and leisure. We need to
enable developers to be involved in more travel
and leisure products, rather than just the
timeshare side.Ken May, RCI (Source
Developments)
120VISIONS 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)
121 Architecture is becoming a commodity. Winners
will be Turnkey Facilities Management
providers.SMPS Exec
122We are a real estate facilities consulting
organization, not just an interior design
firm.Jean Bellas, founder, SPACE (from SMPS
Marketer)
123Omnicom 57 (of 6B) from marketing services
124Who was the number one employer of architecture
school grads in the U.S. last year?
125Message Eat Or Be Eaten.
126HP. Sun. IBM. GE/PS. GE/IS. (GE/AE.
GE/MD.) UTC. Farmers. Delphi. UPS/ FedEx/
Ryder. Springs. Omnicom. IDEO. Accenture.
Equity Office Properties. RCI. Etc. Etc.
127Words Partners Value Added
Intellectual-capital Added Consultative-skills
Added Implementation Added Model PSF
Outsourcing (??) Acquisitions-led (Omnicom et
al.) Experiences- (Solutions-) (Customer
Success-) driven.
128Core Logic (1) 108X5 to 8X1/ eLiza/ 100sf.
(2) Dept. to PSF/ WWPF. (3) V.A. via PSFs
Unbound/ Solutions/ Customer Success.
129Model2002/3/4/5/??Dell IBM MagicCut
(ALL) the bullshitAdd (LOTSA)
soft/integrative/experiences value
130The Seagate Exception. (Paradox? Possibility?)
131The Solutions25.
132 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.
133The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez Rene
Tissen, Zero Space Moving Beyond Organization
Limits.
134In 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)
135Once 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
136By 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
137PG, Unilever and Others Are Trying an
Experiment Giving Marketing More Say Over
ResearchAdvertising Age (03.25.2002)
13812. All functions contribute equallyIS, HR,
Finance, Purchasing, Engineering,
Logistics, Sales, Etc.13. Project Management can
come from any function.14. WE ARE ALL IN SALES.
PERIOD.15. We all invest in wiring the
customer organization.16. WE ALL LIVE THE
BRAND. (Brand Solutions. That MAKE
MONEY FOR OUR CUSTOMER- PARTNER.)17. We
use the word PARTNER until we all want to
barf!18. We NEVER BLAME other parts of our
organization for screw-ups.19. WE AIM TO
REINVENT THIS INDUSTRY!20. We hate the word-idea
COMMODITY.
13921. We believe in High tech, High touch.22. We
are DREAMERS.23. We deliver . (PROFITS.)
(CUSTOMER SUCCESS.)24. If we play the SOLUTIONS
GAME brilliantly, no one can touch us!25.
Our TEAM needs 100 I.C.s (Imaginative
Contributors). This is the ULTIMATE All Hands
affair!
140Q Is that all there is?A Quite
possibly.Roches New Scientific MethodFast
Company. And? X-Functional Teams (NO
STOVEPIPES!). Fail fast. The only way to
embrace a technological revolution, Roche has
discovered, is to unleash an organizational
revolution.
141Duh??? Weve come up with a solution. Weve
begun to create a form of communications that is
much better than we had before, and thats
allowed us to gather better data. Weve finally
realized that we have an interplay with other
hospitals and with pre-hospital.Dr. Ben
Honigman, ER, U. Colorado Hospital, on diverts
(Denver Post/05.05.02)Internet Data Open
data exchange Barrier busting
142 Innovation Speed Basics1. XFTs are
the culture.2. Project-centric. 3. Open
talent market.4. Cause-based projects. 5.
Ubiquitous open systems. ISat home
throughout supply chain. Web based.6.
F-L-A-T.Innovation, Speed, CRM, Experience/
Solution demand this
143 Innovation Speeds New Basics1. XFTs
are the culture.2. Project-centric. 3. Open
talent market.4. Cause-based projects. 5.
Ubiquitous open systems. ISat home
throughout supply chain. 100 Web based.6.
F-L-A-T.Innovation, Speed, CRM, Experience/
Solution demand this
144 Innovation Speeds New Basics1. XFTs
are the culture.2. Project-centric. 3. Open
talent market.4. Cause-based projects. 5.
Ubiquitous open systems ISat home
throughout supply chain. Web based.6.
F-L-A-T.7. EVP (S.O.U.B), etc.Innovation,
Speed, CRM, Experience/ Solution demand this
145Supply 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)
146KEY WORDS Partners with our Customers in
creating Memorable, Value-added Solutions/
Successes/ Experiences. WHICH REQUIRES Total
Enterprise Responsiveness beyond functional
walls.
147The 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 (8.2001)
148NEW BUSINESS. NEW BRAND.
149A World of Experiences.
150Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
151Experience 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
152The 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
153Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
154Guinness as a brand is all about community. Its
about bringing people together and sharing
stories.Ralph Ardill, Imagination, in re
Guinness Storehouse
155From Service to Cause7X. 730A-800P.
F12A.Plus WOW Department Kill a Stupid
Rule contests, etc. 2001R 34 P 29
90-00 2,048. Commerce Bank/NJ (10B).
Source FC05.02.
156The Experience LadderExperiences
ServicesGoods Raw Materials
157 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
158Message Experience is the Last 80P.S.
Experience applies to all work!
159 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
160Bob 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
161Its All About EXPERIENCES Trapper to
Wildlife Damage-control ProfessionalTrapper
lt20 per beaver pelt.WDCP 150/problem
beaver 750-1,000 for flood-control piping
so that beavers can stay.Source
WSJ/05.21.2002
162The Experience LadderExperiences
ServicesGoods Raw Materials
163 Ladder Position MeasureSolutions
Success(Experiences)Services
SatisfactionGoods Six-sigma
164The Soul of Experiences Design Rules!
165Design Myths.
166Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
167The 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
168Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
169Design Transforms even the Biggest
Corporations!TARGET the champion of
Americas new design democracy (Time) Marketer
of the Year 2000 (Advertising Age)
170Lady Sensor, Mach3, and 70M on developing
the OralB CrossAction toothbrush23 patents,
including 6 for the packagingSource
www.ecompany.com 06.00
171Design2002LISTERENEs PocketPaksWESTINs
Heavenly
172Westins Heavenly Bed
173Designs place in the universe.
174And Tomorrow Fifteen years ago companies
competed on price. Now its quality. Tomorrow
its design.Robert Hayes
175All 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
176Design is treated like a religion at
BMW.Fortune
177The new Beetle fails at most categories. The
only thing it doesnt fail in is drop-dead
charm.Jerry Hirshberg, Nissan Design
International
178Object 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
179The good 10 percent of American product design
comes out of big-idea companies that dont
believe in talking to the customer. They're run
by passionate maniacs who make everybodys life
miserable until they get what they want.Bran
Ferren, Applied Minds/Wired 1-2001
180We 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
181Check Out the LanguageTomorrow its design
Design is the only thing Design is
religion ...Drop-dead charm Object of
desire Passionate maniacs Fundamental
soul
182Bottom Line.
183Design is WHAT WHY I LOVE. LOVE.
184I LOVE my ZYLISS Garlic Peeler!
185All Time No.1 (TP)Ziplocs
186Design is WHY I GET MAD. MAD.
187Wanted THE DESIGNER OF MY RADIO SHACK PHONE.
Major Reward!
188Design is never neutral.
189Hypothesis DESIGN is the principal difference
between love and hate!
190THE BASE CASE I am a design fanatic. Though
not artistic, I love cool stuff. But it
goes much further, far beyond the personal.
Design has become a professional obsession. I
SIMPLY BELIEVE THAT DESIGN PER SE IS THE
PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT or
detachment RELATIVE TO A PRODUCT OR SERVICE OR
EXPERIENCE. Design, as I see it, is arguably
the 1 DETERMINANT of whether a
product-service-experience stands out or
doesnt. Furthermore, its another one of those
things that damn few companies put
consistently on the front burner.
191Message (?????) Men cannot design for womens
needs.
192Perhaps the macho look can be interesting if
you want to fight dinosaurs. But now to survive
you need intelligence, not power and aggression.
Modern intelligence means intuitionits female.
Source Philippe Starck, Harvard Design
Magazine (Summer 1998)
193Design Beautiful Systems.
194 Fred S.s mediocre thesis. Herb K.s napkin.
195Great design One-page business plan (Jim Horan)
196K.I.S.S. Gordon Bell (VAX daddy) 500/50.
Chas. Wang (CA) Behind schedule? Cut least
productive 25.
197Systems Must have. Must hate. / Must design.
Must un-design.
198Mgt. Team includes EVP (S.O.U.B.)
199Executive Vice President, Stomping Out
Unnecessary Bullshit
200Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
201First Steps Beauty Contest!
- Select one form/document invoice, air bill, sick
leave policy, customer returns-claim form. - 2. Rate the selected doc on a scale of 1 to 10
1 Bureaucratica Obscuranta/ Sucks 10 Work
of Art on four dimensions Beauty. Grace.
Clarity. Simplicity. - 3. Re-invent!
- 4. Repeat, with a new selection, every 15
working days.
202 It all adds up to THE BRAND.
203The Heart of Branding
204WHO ARE WE?
205Most companies tend to equate branding with the
companys marketing. Design a new marketing
campaign and, voilĂ , youre on course. They are
wrong. The task is much bigger. It is about
fulfilling our potential not about a new logo,
no matter how clever. WHAT IS MY MISSION IN
LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW
DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE
WORLD IS ACTUALLY UNIQUE? The brand has to give
of itself, the company has to give of itself, the
management has to give of itself. To put it
bluntly, it is a matter of whether or not you
want to be UNIQUE NOW.Jesper Kunde, A
Unique Moment
206WHATS OUR STORY?
207We 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
208Apple opposes, IBM solves, Nike exhorts, Virgin
enlightens, Sony dreams, Benetton protests.
Brands are not nouns but verbs.Source
Jean-Marie Dru, Disruption
209DO THE HOUSEKEEPERS CLERKS BUY IT? ARE YOU
V-E-R-Y SURE?
210EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
2111st Law Mktg Physics OVERT BENEFIT (Focus 1 or
2 gt 3 or 4/One Great Thing. Source 1
Personal Passion)2ND Law REAL REASON TO
BELIEVE (Stand Deliver!)3RD Law DRAMATIC
DIFFERENCE (Execs Dont Get It See the next
slide.)Source Jump Start Your Business Brain,
Doug Hall
2122 QuestionsHow likely are you to purchase
this new product or service? (95 to 100
weighting by execs)How unique is this new
product or service? (0 to 5)No exceptions
in 20 years Doug Hall, Jump Start Your Business
Brain
213They consumer goods company have acquired a
bunch of products, which is what everyone is
doing. But whats the point, the message, the
story line, the Big Idea that makes it all hang
together? Exec, major consumer goods company
214Instead of having the brand be seen as
good-better-best for the same type of clothing,
theyve got to give it more uniqueness. David
Martin, Interbrand US, on The Gaps problems
215You 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
216A great company is defined by the fact that it
is not compared to its peers.Phil Purcell,
Morgan Stanley
217Brand 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
218Were not going to be driven by where we think a
funding agency would like to see us go. Were
going to build our case and then find an
organization that agrees with us.Stephen
Spongberg, Polly Hill Arboretum
219WHY DOES IT MATTER TO THE CLIENT?
220EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
221Brand Promise Exercise (1) Who Are WE?
(poem/novella/song, then 25 words.) (2) List
three ways in which we are UNIQUE to our
Clients. (3) Who are THEY (competitors)? (ID, 25
words.) (4) List 3 distinct us/them
differences. (5) Try results on your
teammates. (6) Try em on a friendly Client. (7)
Try em on a skeptical Client!
222 Branding Is-Is Not TableTNT is not
TNT is TNT is notJuvenile
Contemporary Old-fashionedMindless
Meaningful ElitistPredictable
Suspenseful DullFrivolous
Exciting SlowSuperficial
Powerful Self-important
223NEW BUSINESS. NEW WORK.
224 The WOW Project.
225Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
226Language matters! Wow! BHAG! Takes your breath
away!
227Lets 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!)
229Language matters!
230We shape our buildings. Thereafter they shape
us.WSC
231We shape our words. Thereafter they shape
us.TJP
232Astonish me! / S.D.Build something great! /
H.Y.Immortal! / D.O.
233Motto No damn J.A.M.S.
234WOW Projects for the Powerless.
235Topic Boss-free Implementation of STM /Stuff
That MATTERS!
236Worlds Biggest Waste Selling Up
237THE IDEA Model F4 Find a Fellow Freak Faraway
238F2F!/K2K!/1_at_T/R.F!A.Freak to
Freak/ Kook to Kook/ One at a Time/
Ready.Fire!Aim.
239And K2KKS2SSKook to Kooky
KustomerSkunk to Scintillating Supplier
240 BOTTOM LINEThe Enemy!
241Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
242The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
243Nobody gives you power. You just take
it.Roseanne
244Kurt Carlson to young Marilyn Carlson If you
dont like Sunday School, change it! (She did.)
245 Obeying the rules is obeying their rules.
Women can never be powerful as long as they try
to be in charge in the same way men take
charge.Harriet Rubin, The Princessa
Machiavelli for Women
246Dont just express yourself. Invent yourself.
And dont restrict yourself to off-the-shelf
models.Henry Louis Gates, Jr., commencement
address, Hamilton College
247Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
248Epitaphs from Hell
249Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
250Joe J. Jones 1942 2002 HE MADE BUDGET!
(AGAIN AGAIN.)
251Joe J. Jones 1942 2002 HIS NET WORTH WAS
11,000,000.
252Joe J. Jones 1942 2002 HE HIT QUARTERLY
EARNINGS TARGETS 44 TIMES IN A ROW.
253WHO WILL GO TO STOCKHOLM? (Damn it.)
254Very simple. I never edited books I didnt
love. J.O., on her consistent success as an
editor
255If you are not prepared to be fired over your
beliefs you are working on the wrong project -
TP
256IMPLEMENTATION SECRETS. Credibility. Demos
End Runs Being There. Mr. OSHA Maine. Find
three COs. Seek determined alumnae. Go to
Bangkok. (Forget How do I erase the old?
Supplant rather than change the regnant
heirarchs.)
257Its politics, stupid! (Play or sit on the
sidelines.)
258The Sales25.
259 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.)
260Its politics, stupid! (Play or sit on the
sidelines.)
261 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.)
262 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.
263 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!
264Boss Work Starting a WOW Projects Epidemic.
265Premise Ordering Systemic Change is a Stupid
Waste of Time!
266Demos! Heroes! Stories!
267Demo StoryA key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner, Leading Minds An
Anatomy of Leadership
268MBSA!Managing By Story-ing Around/David
Armstrong
269Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage
270Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
271He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
272Success is the ability to go from failure to
failure without losing your enthusiasm.Winston
Churchill (as quoted by John Peterman)
273Some people look for things that went wrong and
try to fix them. I look for things that went
right and try to build on them. Bob Stone/ Mr.
Rego/ Confessions of an Uncivil Servant
274REAL Org Change Demos Models (Model
Installations, ReGo Labs)/ Heroes (mostly
extant burned to reinvent govt)/ Stories
Storytellers (Props!)/ Chroniclers (Writers,
Videographers, Pamphleteers, Etc.)/ Cheerleaders
Recognition (PosgtgtNeg, Volume)/ New Language
(Hot/Emotional/WOW)/ Seekers (networking mania)/
Protectors/ Support Groups/ End RunsPull
Strategy (weird alliances, weird customers,
weird suppliers, weird alumnae-JKC)/ Field Real
People Focus (3 COs) (long way away)/ Speed
(O.O.D.A. Loopsact before the bad guys can
react)C.f., Bob Stone, Confessions of an
Uncivil Servant
275NEW BUSINESS. NEW YOU.
276Re-inventing the Individual BRAND YOU. (Or
Else.)
277New 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
278If 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
279Minimum New Work SurvivalSkillsKit2002MasteryRo
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
280Sams Secret 1!
281Minimum 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
282My 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)
283Knowledge 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)
28426.3
2853 Weeks in MayTraining Prep 187Work
41(Other 17)
2861 vs. 367
287Divas 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?
288R.D.A.Rate 15?, 25?Therefore Formal
Investment Strategy/R.I.P.
289Invent. Reinvent. Repeat.Source HP banner ad
290You are the storyteller of your own life, and
you can create your own legend or not.Isabel
Allende
291PRECEDENT!No prudent man dared to be too
certain of exactly who he was. Everyone had to be
prepared to become someone else. To be ready for
such perilous transmigrations was to become an
American.Daniel Boorstin
292In 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
293Thriving in 24/7 (Sally Helgesen)START AT THE
CORE. Nimbleness only possible if we locate
our inner voice, take regular inventory of where
we are. LEARN TO ZIGZAG. Think gigs. Think
lifelong learning. Forget old loyalty. Work on
optimism.CREATE OUR OWN WORK. Articulate your
value. Integrate your passions. I.D. your market.
Run your own business.WEAVE A STRONG WEB OF
INCLUSION. Build your own support network.
Master the art of looking people up.
294AssignmentConstruct a 1/8-page or 1/4-page ad
for Brand You for the Yellow Pages
295THE I work for a company called Me STREET
JOURNALAdventures in Capitalism
296THE rise up and flee your cubicle STREET
JOURNALAdventures in Capitalism
297Boss Work The Talent Imperative.
298 Brand Talent.Duh.
299The Talent Ten
3001. ObsessionP.O.T. All ConsumingPursuit
of Talent
301Model 25/8/53 Sports Franchise GM