Title: Tom Peters
1 Tom Peters We Are in a Brawl with No
RulesDubai/02November2002
2We are in a brawl with no rules.Paul Allaire
3There 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
4I. NEW BUSINESS. NEW CONTEXT.
5All Bets Are Off.
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
7The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically.Peter Drucker,
Business 2.0 (08.00)
82. The Destruction Imperative.
9Good 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
10It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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
12ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
13When 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
14 Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
15Active 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
16Lessons 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
17 TP on
Acquisitions1. Big Big Disaster.
(Statistically.) (There are exceptions e.g.,
Citigroup.)2. Big (GE, Cisco, Omnicon) acquires
small/specialist Good if you can
retain Top Talent.3. Odds on achieving
projected synergies among Mixed Big
cultures 10.4. Max Scale Advantages are
achieved at a smaller size than imagined.5.
Attacked by Big, Mediocre Medium marries
Mediocre Medium to bulk up. Result Big
Mediocrity or worse.6. Any sizeif Great
Focusedcan win, locally or globally.7.
Increasingly, Alliances deliver more value than
mergers and clearly abet flexibility.
18CEOs appointed after 1985 are 3X more likely to
be fired than CEOs appointed before 1985Warren
Bennis, MIT Sloan Management Review
19Most of our predictions are based on very linear
thinking. Thats why they will most likely be
wrong.Vinod Khosla, in GIGATRENDS, Wired
04.01
20The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
21The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
22The 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)
23C.E.O. to C.D.O.
24Organize for performance customer
satisfaction.Disorganize for renewal
innovation.
25Japans 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
26December 2000 Swiss House for Advanced Research
Education. Cambridge, Massachusetts. Xavier
Comtesse You never hear a Swiss say, I want to
change the world. We need to take more risks.
27No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
28Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
29The 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)
30The Three Levels of InnovationTransformational
SubstantialIncrementalSource Dick Foster,
Business 2.0 (05.01) Note Each level requires
totally different processes!
31II. NEW BUSINESS. NEW TECH.
323. The White Collar Revolution the Death of
Bureaucracy.
33108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
34E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
35IBMs Project eLiza! Self-bootstrapping/
Artilects
36A bureaucrat is an expensive microchip.Dan
Sullivan, consultant and executive coach
37Unless 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
38 4. IS/ IT/ Web On the Bus or Off the Bus.
39100 square feet
40Dells OptiPlex FacilityBig Job 6 to 8
hours.(80,000 per day)Parts Inventory 100
square feet.
41Impact No. 1/ Logistics Distribution
WalMart Dell Amazon.com Autobytel.com
FedEx UPS Ryder Cisco Etc. Etc. Ad
Infinitum.
42Autobytel 400. WalMart 13.Source
BW(05.13.2002)
43WebWorld 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
44Ebusiness 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
45Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
46Theres 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
47Inet allows you to dream dreams you could
never have dreamed before!
48Supposejust 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
49Case CRM
50Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
51The 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
Ridderstråle, Funky Business
52Amen!The Age of the Never Satisfied
CustomerRegis McKenna
53CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
54CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
55Here We Go Again Except Its Real This
Time!Bank online 24.3M (10.2002) 2X
Y2000.Wells Fargo 1/3rd 3.3M 50 lower
attrition rate 50 higher growth in balances
than off-line more likely to cross-purchase
happier and stay with the bank much longer.B
of A 4M of 15M ( way beyond the early
adopters).Source The Wall Street
Journal/10.21.2002
56Richard Rosecrance, The Rise of the Virtual
State Wealth and Power in the Coming Century
57Hong Kong Prototypical Virtual State83
Service8 Mfg.Source Richard Rosecrance,
The Rise of the Virtual State
58The new dependence on productive assets located
within someone elses state represents an
unprecedented trust in the integrity and
peacefulness of strangers.In its pure form
an ideal model toward which many states are
tending the virtual state carries within it the
possibility of an entirely new system of world
politics.Richard Rosecrance, The Rise of the
Virtual State
59The virtual corporation is research,
development, design, marketing, financing, legal,
and other headquarters functions with few or no
manufacturing capabilities a company with a
head but no body.Richard Rosecrance, The Rise
of the Virtual State
60We own all the intellectual property, we farm
out all the direct labor.Jim McDonnell, VP, IBM
61Is There a There There The Ericsson Case1.
50 Mfg to Solectron/Flextronics2. Substantial
RD to India3. Division for licensing
technology4. JV with Sony on crown jewel
handsets5. Net a wireless specialist that
depends on services more than manufacturing, on
knowledge more than metal
Source BW/11.04.02
62The Futility of Size Regarding this issue
the new process of virtualization fully exerts
itself. Virtualization is the recognition that
territorial size does not solve economic
problems. Economic access must become the
substitute for economic domain.Richard
Rosecrance, The Rise of the Virtual State
63TP Skill at creating, exploiting, and exiting
crucial alliances beats ownership of fixed assets.
64Whats the Common Denominator?The Dutch the
British the Rothschilds Cargill Sumitomo
the KGB the CIA Enron WalMart McKinsey
FedEx UPS Mr. Speaker Henry Kissinger
Executive secretaries the Corner Grocer?
65Masters of information acquisition, manipulation,
dissemination, and utilization.Networkmeisters.
Agile.Temporary.Virtual is thy
name.Motto Applied information is
power/wealth.
66III. NEW BUSINESS. NEW VALUE PROPOSITION.
675. The PSF SolutionThe Professional Service
Firm Model.
68So what will be the Basic Building Block of the
New Org?
69Every job done in W.C.W. is also done outside
for profit!
70Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
71eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
72 Model PSF
73 (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!
74Typically 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)
756. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
76The Big Day!
7709.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
78These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
79Gerstners 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).
80You are headed for commodity hell if you dont
have services.Lou Gerstner on IBMs coming
revolution (1997)
81Service-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.)
82ATT 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
83Is There a There There The Ericsson Case1.
50 Mfg to Solectron/Flextronics2. Substantial
RD to India3. Division for licensing
technology4. JV with Sony on crown jewel
handsets5. Net a wireless specialist that
depends on services more than manufacturing, on
knowledge more than metal
Source BW/11.04.02
84We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
85Customer 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
86Keep In Mind Customer Satisfaction versus
Customer Success
87E.g. UTC/Otis Carrier boxes to integrated
building systems
88Leased AC Units of Coolth
89Nardellis goal (50B to 100B by 2005)
move Home Depot beyond selling goods to selling
home services. He wants to capture home
improvement dollars wherever and however they are
spent. E.g. house calls (At-Home Service
10B by 05?) pros shops (Pro Set) home
project management (Project Management System
a deeper selling relationship).Source USA
Today/06.14.2002
90UPS 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)
91No 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
92Omnicom 57 (of 6B) from marketing services
93Words Partners Value Added
Intellectual-capital Added Consultative-skills
Added Implementation Added Model PSF
Outsourcing (??) Acquisitions-led (Omnicom et
al.) Experiences- (Solutions-) (Customer
Success-) driven.
94Core Logic (1) 108X5 to 8X1/ eLiza/ 100sf.
(2) Dept. to PSF/ WWPF. (3) V.A. via PSFs
Unbound/ Solutions/ Customer Success.
95Model2002/3/4/5/??Dell IBM
MagicSubtract (ALL) the frictionAdd (LOTS
OF) soft/integrative/experiences value
967. The Solutions25.NO MORE SILOS. NO
MORE STOVEPIPES. (DAMN IT.)
97The 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 René
Tissen, Zero Space Moving Beyond Organizational
Limits.
98 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.
9912. 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.
10021. 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!
101Supply 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)
102KEY WORDS Partners with our Customers in
creating Memorable, Value-added Solutions/
Successes/ Experiences. WHICH REQUIRES Total
Enterprise Responsiveness beyond functional
walls.
103The 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)
104IV. NEW BUSINESS. NEW BRAND.
1058. A World of Scintillating/ Awesome/ WOW
Experiences.
106Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
107Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
108Experience 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
109WHAT CAN BROWN DO FOR YOU?
110Bob 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
111Lexus sells its cars as containers for our sound
systems. Its marvelous.Sidney Harman/ Harman
International
112Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
113Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
114Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, Unique Now ... or Never
on the excellence of Nokia, Nike, Lego, Virgin
et al.
1159. Experiences Embracing the Dream Business.
116DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
117Common Products Dream ProductsMaxwell
House StarbucksBVD
Victorias SecretPayless
FerragamoHyundai
FerrariSuzuki
Harley DavidsonAtlantic City
AcapulcoNew Jersey
CaliforniaCarter
KennedyConners
PeleCNN
MillionaireSource Gian Luigi Longinotti-Buitoni
118 Building the Creative
OrganizationChoose a creator The cultural
leader who gives the company an aesthetic point
of view.Hire eclectically Hire collaborators
with different cultures and past histories in
order to balance rigor with emotion.Prepare
vertically Develop a rigorous understanding of
the product and the client.Develop horizontally
Promote curiosity in unrelated disciplines.Lead
emotionally Engender passionate dedication
through vision and freedom.Build for the long
haul Creativity requires a lifetime
commitment.Source Gian Luigi Longinotti-Buitoni
119Emotional Design that Interprets Dreams Zero
defects Only the starting point.Love at first
sight.Design for the five senses.Develop to
expand the Main Dream.Design so as to seduce
through the peripheral senses.Source Gian
Luigi Longinotti-Buitoni
120The marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
121Constantly Magnify Perceived ValueMaximize your
value-added by fulfilling the dreams of your
clients.Only invest in what is valuable for your
client.Dont let the short-term results weaken
the long-term value of your brand.Balance
rigorous control of the financial endeavor with
the emotional management of your brand.Build a
financial structure that allows risk-taking NO
RISKSNO DREAMS.Establish long-term price
power in order to avoid the trap of the
commodity product.Source Gian Luigi
Longinotti-Buitoni
12210. The Mostly Ignored Soul of Experiences
Design Rules!
123Designs place in the universe.
124All 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
125Design is treated like a religion at
BMW.Fortune
126We 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
127Bottom Line.
128Design is WHAT WHY I LOVE. LOVE.
129Design is WHY I GET MAD. MAD.
130Design is never neutral.
131Hypothesis DESIGN is the principal difference
between love and hate!
132THE 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.
13311. Design Beautiful Systems.
134 Fred S.s mediocre thesis. Herb K.s napkin.
135K.I.S.S. Gordon Bell (VAX daddy) 500/50.
Chas. Wang (CA) Behind schedule? Cut least
productive 25.
136Systems Must have. Must hate. / Must design.
Must un-design.
137Mgt. Team includes EVP (S.O.U.B.)
138Executive Vice President, Stomping Out
Unnecessary Bullshit
139Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
140First 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.
141 12. It all adds up to THE BRAND.
142The Heart of Branding
143WHO ARE WE?
144Most companies tend to equate branding with the
companys marketing. Design a new marketing
campaign and, voilà, 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,
Unique Now ... or Never
145WHATS OUR STORY?
146We 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
147Apple opposes, IBM solves, Nike exhorts, Virgin
enlightens, Sony dreams, Benetton protests.
Brands are not nouns but verbs.Source
Jean-Marie Dru, Disruption
148DO THE HOUSEKEEPERS CLERKS BUY IT? ARE YOU
V-E-R-Y SURE?
149EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
1501st 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 Source Jump Start Your Business
Brain, Doug Hall
151They 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
152A great company is defined by the fact that it
is not compared to its peers.Phil Purcell,
Morgan Stanley
153WHY DOES IT MATTER TO THE CLIENT?
154EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
155Brand 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!
156V. NEW BUSINESS. NEW YOU.
15713. Re-inventing the Individual Brand You/ You
Inc./ Free Agent Nation (Or Else.)
158If 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
159My 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)
160Knowledge 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)
161Invent. Reinvent. Repeat.Source HP banner ad
162In 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
163 14. Toward Work that Matters The WOW Project.
164Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
165Lets make a dent in the universe.
Steve Jobs
166 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!)
167The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
168Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
16915. Boss Job One The Talent Obsession.
170 Brand Talent.Duh.
171ObsessionP.O.T. All ConsumingPursuit of
Talent
172Model 25/8/53 Sports Franchise GM
173The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others.Warren Bennis Patricia Ward
Biederman, Organizing Genius
174 GreatnessOnly The Best!
175From 1, 2 or youre out JW to Best
Talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent
176 PerformanceUp or out!
177We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.Ed
Michaels, War for Talent
178Message Some people are better than other
people. Some people are a helluva lot better than
other people.
179 PayFork Over!
180Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
181 Youth Grovel Before the Young!
182Why focus on these late teens and
twenty-somethings? Because they are the first
young who are both in a position to change the
world, and are actually doing so. For the first
time in history, children are more comfortable,
knowledgeable and literate than their parents
about an innovation central to society. The
Internet has triggered the first industrial
revolution in history to be led by the
young.The Economist 12/2000
1838 Minutes Dr. Sugata Mira, NIIT/ New Delhi/
1999Ignorance to SurfingAnd then theres
oya yubi sedai, the thumb generation
184 DiversityMess Rules!
185Where do good new ideas come from? Thats
simple! From differences. Creativity comes from
unlikely juxtapositions. The best way to maximize
differences is to mix ages, cultures and
disciplines.Nicholas Negroponte
186CM Prof Richard Florida on Creative Capital
You cannot get a technologically innovative
place unless its open to weirdness, eccentricity
and difference.Source New York
Times/06.01.2002
187WeirdThe Cracked Ones Let in the Light!
188The Cracked Ones Let in the LightOur business
needs a massive transfusion of talent, and
talent, I believe, is most likely to be found
among non-conformists, dissenters and
rebels.David Ogilvy
189MantraM3Talent Brand
190Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
191EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
192The Top 5 RevelationsBetter talent
wins.Talent management is my job as
leader.Talented leaders are looking for the
moon and stars.Over-deliver on peoples dreams
they are volunteers.Pump talent in at all
levels, from all conceivable sources, all the
time.Source Ed Michaels et al., The War for
Talent
193First StepsMake a list of the traits you really
want to unearth. (TP sense of humor GR
jaywalking.)Promote for TDS/Talent Development
Skills.Work up an EVP.
194VI. NEW BUSINESS (NEW) BRAND INSIDE RULES
195 16. THINK WEIRD the HVA/ High Value Added
Bedrock.
196The Cortez Strategy!
197THINK WEIRD The High Standard Deviation
Enterprise.
198Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
199CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
200W.I.W?20 of 267 of top 10
201PG Declining domestic sales in 20 of 26
categories 7 of top 10 categories. (The
billion-dollar problem.)Source Advertising
Age 01.21.2002/BofA Securities
202 Primary Obstacles to Marketing-driven
Change1. Fear of cannibalism.2. Excessive
cult of the consumer/ customer driven/
slavery to demographics, market research and
focus groups.3.Creating sustainable
advantage. Source
John-Marie Dru, Disruption
203Account planning has become focus group
balloting.Lee Clow
204Chivalry 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
205HAVE MBAs KILLED OFF MARKETING? Prof Rajeev
Batra says What these times call for is more
creative and breakthrough reengineering of
product and service benefits, but we dont train
people to think like that. The way marketing is
taught across business schools is far too
analytical and data-driven. Weve taken away the
emphasis on creativity and big ideas that
characterize real marketing breakthroughs. In
India there is an added problem most senior
marketing jobs have been traditionally dominated
by MBAs. Santosh Desai, vice president, McCann
Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like
approach, tend to reduce marketing into neat
components. This reductionist thinking runs
counter to the idea that great brands must have a
core, unifying idea. Businessworld/04Nov2002/W
hy Is Marketing Not Working?
206BIG 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)
207Generally, disruptive technologies underperform
established products in mainstream markets. But
they have other features that a few fringe (and
generally new) customers value.Clayton
Christensen, The Innovators Dilemma
208COMPETITORS The best swordsman in the world
doesnt need to fear the second best swordsman in
the world no, the person for him to be afraid of
is some ignorant antagonist who has never had a
sword in his hand before he doesnt do the thing
he ought to do, and so the expert isnt prepared
for him he does the thing he ought not to do and
often it catches the expert out and ends him on
the spot. Mark Twain
209Sony is the epitome of discontinuity. It sees
all its competitors accomplishments merely as
conventions to be overturned.Source
Jean-Marie Dru, Disruption
210Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
211Suppliers There is an ominous downside to
strategic supplier relationships. An SSR supplier
is not likely to function as any more than a
mirror to your organization. Fringe suppliers
that offer innovative business practices need not
apply. Wayne Burkan, Wide Angle Vision Beat
the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
212Enormous sums of money are invested to reduce
cycle time, improve quality, reengineer Much of
this money is simply wasted. The waste is due to
companies inability to develop wide-angle vision
and tap into the power of the edge.Wayne
Burkan, Wide Angle Vision Beat the Competition
by Focusing on Fringe Competitors, Lost
Customers, and Rogue Employees
213Corporate consciousness is predictably centered
around the mainstream. The best customers,
biggest competitors, and model employees are
almost invariably the focus of attention.Wayne
Burkan, Wide Angle Vision Beat the Competition
by Focusing on Fringe Competitors, Lost
Customers, and Rogue Employees
214Deviants, Inc. Deviance tells the story of
every mass market ever created. What starts out
weird and dangerous becomes Americas next big
corporate payday. So are you looking for the next
mass market idea? Its out there way out
there.Source Ryan Matthews Watts Wacker,
Fast Company (03.02)
215Innovation Source No. 1 PPPs/Personally
Pissed-off PeopleBranson started Virgin
Atlantic because flying other airlines was so
dreadful. Fortune/05.13.2002And there is no
No. 2!
216As Francois Dalle, the chairman of LOreal, puts
it, the planner must catch what is barely
beginning.Source Jean-Marie Dru, Disruption
217????? Get better organized to do good
workvs.Get better disorganized to do great
work
21817. Brand Inside Summary The 10 Basics
219Message2002 BI gt BO
220 The Brand Inside10BI1.
The Execution Imperative An Action
CultureBI2. Cherish FailuresBI3. Dent the
Universe WOW Projects/BHAGsBI4. Tell Me a
Story Demo ManiaBI5. Cut the Crap WebWorld
ALLBI6. Beautiful SystemsBI7. The Modified
Basis for Value Added The New Brand
Inside WarriorsBI8. Talent TimeBI9. The
HSDE Weird Begets WeirdBI10. A Brand
New/Brand You World
221 18. Tomorrows Organizations Itinerant
Potential Machines.
222 New Organizational World Shifts
of EmphasisStaffing Fat
ThinOrganization
Vertical
HorizontalWorkforce Homogeneity
DiversityPower Source
Status/Command Rights Expertise/RelationshipsLoy
alty Company
ProjectCareer Asset Organizational
Capital Reputational CapitalSource The
Workforce of the Future, IHRIM Journal (12.2000)
223TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal if youre
stretching. Want to make their bones in the
revolution.Love the new technologies. Well
rewarded. Dont plan to be around 10 years from
now.
224TALENT POOL PLUS. Seek out and work with
worlds best as needed (its often needed). We
aim to change the world, and we need gifted
colleagueswho well may not be on our payroll.
225BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont
knowand then unleash the TALENT. Have a vision
to be DRAMATICALLY DIFFERENTbut dont expect the
co. to be around forever. Will scrap pet
projects, and change course 180 degreesand take
a big write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT
REGRETS AT TIME WASTED ON ME TOO PRODUCTS
AND PROJECTS.
226BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
Visionary leaders matched by leaders with
shrewd business sense HOW DO WE TURN A PROFIT
ON THIS GORGEOUS IDEA? Appreciate market
creation as much as or more than market share
growth. ARE INSANELY AWARE THAT MARKET LEADERS
ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT
MARKET SHARE WILL NOT PROTECT US, IN TODAYS
VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND
KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Case. Etc.)
227ALLIANCE MANIACS. Dont assume that the best
resides within. WORK WITH A SHIFTING ARRAY OF
STATE-OF-THE-ART PARTNERS FROM ONE END OF THE
SUPPLY CHAIN TO THE OTHER. Including vendors
and consultants and especially PIONEERING
CUSTOMERS who will pull us into the future.
228TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet at Internet speed.
Reluctant to work with those who dont share
this (radical) vision.
229POTENTIAL MACHINES-ORGANISMS. Dont know whats
coming next. But are ready to jump at
opportunities, especially those that
challenge-overturn our own way of doing things.
230VII. NEW BUSINESS. NEW LEADERSHIP.
23119. The Passion Imperative The Leadership50
232The Basic Premise.
2331. Leadership Is a Mutual Discovery Process.
234I dont know.
235Leaders-Teachers Do Not Transform People!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a
luxuriant portfolio of meaningful opportunities
(projects) which (3) allow people to fully (and
safely, mostlycaveat they dont engage unless
theyre mad about something) express their
innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams,
assisted by an extensive self-constructed
network) by which those people (5) go to-create
places they (and their mentors-teachers-leaders)
had never dreamed existedand then the
leaders-mentors-teachers (6) applaud like hell,
stage photo-ops, and ring the church bells 100
times to commemorate the bravery of their
followers explorations!
236The Leadership Types.
2372. Great Leaders on Snorting Steeds Are Important
but Great Talent Developers (Type I Leadership)
are the Bedrock of Organizations that Perform
Over the Long Haul.
23825/8/53(Damn it!)
2393. But Then Again, There Are Times When This
Cult of Personality (Type II Leadership) Stuff
Actually Works!
240A leader is a dealer in hope.Napoleon
(TPs writing room pics)
2414. Find the Businesspeople! (Type III
Leadership)
242I.P.M. (Inspired Profit Mechanic)
2435. All Organizations Need the Golden Leadership
Triangle.
244The Golden Leadership Triangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic.
2456. Leadership Mantra 1 IT ALL DEPENDS!
246Renaissance Men are a snare, a myth, a delusion!
2477. The Leader Is Rarely/Never the Best Performer.
24833 Division Titles. 26 League Pennants. 14 World
Series Earl Weaver0. Tom Kelly0. Jim
Leyland0. Walter Alston1AB. Tony LaRussa132
games, 6 seasons. Tommy LasordaP, 26 games.
Sparky Anderson1 season.
249The Leadership Dance.
2508. Leaders SHOW UP!
251P.S. Mark McCormack 5,000 miles for a 5 min.
meeting!
2529. Leaders LOVE the MESS!
253Im not comfortable unless Im
uncomfortable.Jay Chiat
254If things seem under control, youre just not
going fast enough.Mario Andretti
25510. Leaders DO!
256The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
25711. Leaders Re-do.
258If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
259If it works, its obsolete. Marshall McLuhan
26012. BUT Leaders Know When to Wait.
261Tex Schramm The too hard box!
26213. Leaders Are Optimists.
263Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
264Half-full Cups Ronald Reagan radiated an
almost transcendent happiness.Lou Cannon,
George (08.2000)
26514. Leaders DELIVER!
266It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
267When assessing candidates, the first thing I
looked for was energy and enthusiasm for
execution. Does she talk about the thrill of
getting things done, the obstacles overcome, the
role her people playedor does she keep wandering
back to strategy or philosophy? Larry Bossidy,
Honeywell/AlliedSignal, in Execution
26815. Leaders FOCUS!
269To Dont List
27016. Leaders Set CLEAR DESIGN SPECS.
271Danger S.I.O. (Strategic Initiative Overload)
272JackWorld/1_at_T (1) Neutron Jack. (Banish
bureaucracy.) (2) 1, 2 or out Jack. (Lead or
leave.) (3) Workout Jack. (Empowerment, GE
style.) (4) 6-Sigma Jack. (5) Internet Jack.
(Throughout) TALENT JACK!
27317. Leaders Send V-E-R-Y Clear Signals About
Design Specs!
274Ridin with Roger What have you done to
DRAMATICALLY IMPROVE quality in the last 90 days?
275Its Relationships, Stupid.
27618. Leaders Trust in TRUST!
277Credibility!
278If It Aint Broke Break It.
27919. Leaders FORGET!/Leaders DESTROY!
280Cortez!
281Leaders dump the ones who brung em Nokia, HP,
3M, PerkinElmer, Corning, etc.
28220. BUT Leaders Have to Deliver, So They Worry
About Throwing the Baby Out with the Bathwater.
283Damned If You Do, Damned If You Dont, Just
Plain Damned.Subtitle in the chapter, Own Up
to the Great Paradox Success Is the Product of
Deep Grooves/ Deep Grooves Destroy Adaptivity,
Liberation Management (1992)
28421. Leaders HONOR THE USURPERS.
285Saviors-in-WaitingDisgruntled
CustomersUpstart CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision
28622. Leaders Make Lotsa Mistakes and MAKE NO
BONES ABOUT IT!
287Fail faster. Succeed sooner.David Kelley/IDEO
28823. Leaders Make BIG MISTAKES!
289Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
290Create.
29124. Leaders Know that THERES MORE TO LIFE THAN
LINE EXTENSIONS. Leaders Love to CREATE NEW
MARKETS.
292No one ever made it into the Business Hall of
Fame on a record of line extensions.
29325. Leaders Pursue DRAMATIC DIFFERENCE!
2941st 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 intent to
purchase 100 unique 0 to 5)Source
Jump Start Your Business Brain, Doug Hall
29526. Leaders Make Their Mark / Leaders Do
Stuff That Matters
296I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
29727. Leaders Push Their Organizations W-a-y Up the
Value-added/ Intellectual Capital Chain
29809.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersConsulting business!
29928. Leaders LOVE the New Technology!
300100 square feet
30129. Needed? Type IV Leadership Technology
Dreamer-True Believer
302The Golden Leadership Quadrangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic. (4) Technology
Dreamer-True Believer
303Talent.
30430. When It Comes to TALENT Leaders Always
Swing for the Fences!
305Message Some people are better than other
people. Some people are a helluva lot better than
other people.
30631. Leaders Manage Their EVP/Internal Brand
Promise.
307MantraM3Talent Brand
30832. Leaders LOVE RAINBOWS for Pragmatic Reasons.
309Diversity defines the health and wealth of
nations in a new century. Mighty is the mongrel.
The hybrid is hip. The impure, the mélange, the
adulterated, the blemished, the rough, the
black-and-blue, the mix-and-match these people
are inheriting the earth. Mixing is the new norm.
Mixing trumps isolation. It spawns creativity,
nourishes the human spirit, spurs economic
growth and empowers nations.G. Pascal
Zachary, The Global Me New Cosmopolitans and
the Competitive Edge
310Passion.
31133. Leaders Out Their PASSION!
312G.H. Create a cause, not a business.
31334. Leaders Know ENTHUSIASM BEGETS ENTHUSIASM!
314BZ I am a Dispenser of Enthusiasm!
31535. Leaders Focus on the SOFT STUFF!
316Soft Is Hard- ISOE
317The Job of Leading.
31836. Leaders Know Its ALL SALES ALL THE TIME.
319TP If you dont LOVE SALES find another life.
(Dont pretend youre a leader.) (See TPs
The Project50.)
32037. Leaders LOVE POLITICS.
321TP If you dont LOVE POLITICS find another
life. (Dont pretend youre a leader.)
32238. But Leaders Also Break a Lot of China
323If youre not pissing people off, youre not
making a difference!
32439. Leaders Give RESPECT!
325- It was much later that I realized Dads s