Benchmark Scotland Glasgow 25 May 2000. 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.:...

Benchmark Scotland

Glasgow25 May 2000

1 Year = 1.5 Wal*Marts

03.27.99: $167B03.27.00: $555B

P.S.: Wal*Mart = #8 in 2000

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

“Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner

than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”

AP/AOL/02-00

No Wiggle Room!

“Incrementalism is innovation’s worst

enemy.” Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of the

Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

Welcome to the Land of the True Believers!

“We have the ability to turn the economy upside down, to enhance lives, and to drive

civilization forward.”

Michael Saylor,MicroStrategy

“It means nothing less than the total

reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPointFord + Yahoo!Ford + Oracle

Ford + HP/MCIWorldcomEtc.Etc.

“There is probably going to be more confusion in

the business world in the next decade than there has been in any decade

in history.”Steve Case (2-00)

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

T.T.D./True or False:

“incrementalism”

VERSUS

“innovation”?

Notes Page• This is a daunting issue. There is no “right answer.”

But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention.

• Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!

Seminar Y2K

Brand Everything:Distinct or Extinct!

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman

Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I

draw a blank.’ ”

Mark Sirower, The Synergy Trap

“Talent” and a $2T enterprise??????

“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco

Valley Exec on Cisco Strategy:

“Maybe you overpay for a company, but it’s the pick of the

litter and you haven’t frittered away boatloads on R&D”*

*See also Fast Company on “ ‘Built to flip’ vs. ‘Built to last’ ”

“R & D”

Intel’s venture fund: 275 investments, $8B

Source: Fast Company , eCompany

Net World!

Act now. Analyze later.

Avram Miller

C.E.O. to

C.D.O.

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Paradox Redux

Atlanta: +113,600 = #1 metro area

Layoffs [major]: BellSouth, Lockheed, Coca-Cola

Brand Inside

Brand Org!

108 X 5vs.

8 X 1*

* 540 vs. 8

And Now the Equivalent …

White Collar Revolution!

ERP, ASP, ECM, Web, Etc.

IT’S THE GIANT SUCKING SOUND

OF SLACK BEING EXTRACTED FROM

THE GLOBAL ECONOMY!

Cemex and FDX!

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

“Assetless Company”

J.B.

RR on Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon/WebMD

* ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael

Lewis, The New New Thing

[ Incidentally …

CEO Jeff ArnoldAge: 30

First Start-up: Age 24]

SoftWatch (MS)“Manage relationships across the

healthcare continuum”/ Amir Kishon

Establish e-relationships with customers/retain customers/collect data

Patients record info + receive feedback/ online access to nurses

Community with others with MS

Etc.Source: Start-Up

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

12/31/00 (per Newsweek 04.24.00)

75% of U.S. universities will have on-line offerings/ 5.8 million students

“Unbundling” profs’ jobs (star lecturer, facilitator)/ Repackage “content”

as multi-media “event”

AAUP is angry! (Good news!)

355 studies: Equal results! (and one teachers union study

that disagrees!)

Election.com*

*Arizona Democratic primary, etc.

Buzzsaw.com

Builders, Owners, Architects, Contractors, Suppliers

$4T industry

5,300 commercial bldg. projects’ specs on-line; +70 per day

“The e-conomy is one of re-intermediation, where new

technologies make it possible to radically increase complexity and

efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the

demands of the consumer and business change.”

Thomas Koulopoulos, Delphi Group

These are …

L.A.D.T.I.R.S.*

*Life-and-death-total-industry-reinvention-struggles

So …

What will be the Basic Building Block of the

New Org Unit?

Why are there no books on how to create

a “Cool, Rocking, WOW-producing

Finance Department”?

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

[NAPM Redux: Welcome to the Y2K New Orleans

Jazz and Real Cool Purchasing Dudes

Festival!]

NAPM: Not “Purchasing”!NAPM: Not “Supply Chain Mgt.”

NAPM = TE/IR!*

*Total Enterprise/Industry

Reinvention!

PSF 1.0

Professional Service Firm Conversion Kit /

Release 1.0

The “7Ps” of PSF 1.0

Projects!Passion!

Provocation!Partnership!

Politics!Professionalism!

Performance!

C.I.O. to

C.E.F.R.N.S.*

*Chief Evangelist For

Really Neat Stuff

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

“How long does ‘culture change’

take?”

What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

Culture Change is not “Corporate.”Culture Change is not a “Program.”

Culture change does not take “Years.”Culture Change does not start “Today.”

Culture Change starts Right Now!Culture Change

Lives in the Moment!Culture Change is

Entirely in Your Hands!

Brand Inside

Brand Work!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

But Does It Matter ????

“On time, on budget … who cares?”

anon. seminar participant (4/99)

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”

CEO, F100 financial services company (10-98)

WOW Project Anatomy

I. Create!II. Sell!

III. Implement! IV. Exit!

Reframers’ Rules:

Rule 1: Never accept an assignment as given!

Rule 2: You’re never so powerful as when you are “powerless”!Rule 3: Every “small” project contains the entire enterprise

DNA!

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

E.g.: WOW Scale

1. … Dull as dishwater.

5. … Gets the job done.

7. … “Good work!”.

10. … A serious “Braggable”!

WOW Project “Acid Test”

Can you explain it - with zest -

to your 14-year-old?

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

Sell, Sell, Sell!

Master “The Pitch”!

Repeat: “I am a salesperson!”

Culture of Prototyping

“Effective prototyping may be the most valuable core

competence an innovative organization can hope to

have.”

Michael Schrage

“I view models and prototypes as the

battleground for thoughts and behaviors.”

Michael Schrage

“You can’t be a serious innovator unless and until you are ready,

willing and able to seriously play. ‘Serious play’ is not an oxymoron;

it is the essence of innovation.”

Michael Schrage, Serious Play

Prototyper’s LawsDefine a small, practical test of something on a

page or less of text. Now.

Gather “found” materials … on the [very] cheap.

Find a/one partner-“customer” who’ll provide a test site.

Set a very tight deadline of about 5 days for the next concrete step.

Conduct the test! Debrief A.S.A.P.

Set the next test date. Now. [No more than 5 days hence.]

Implementation Secret No. 1: Forget “selling up”! Go horizontal: Find a (one!) “line” ally in “the Boonies”!

Secret No. 2: “Powerless” allies are Cool!Secret No. 3: Become a Prototyping

Maniac! Secret No. 4: Embrace Politics /

“Community Organizing”! Secret No. 5: Passion Rules! Get your

story in shape!

SOOOO … HOW MANY OF YOUR COLLEAGUES ARE

“BACK HOME” AT WORK ON UNMISTAKABLY … WOW* PROJECTS!

* WOW = Will be remembered fondly/

bragged about 5+ years from now

Epitaph from Hell …

Joe T. Jones

1942 - 2000

HE WOULDA DONE SOME

REALLY FABULOUS STUFF

BUT …

HIS BOSS WOULDN’T LET HIM!

“To Do”: Now!– List all projects– Carefully describe a “WOW Outcome” for you

and the Client– Score (!) all projects on WOW, Beauty, Impact,

Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that

emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

1) Turn ignition key.2) Shift into drive.

3) Press foot firmly on the throat of mediocrity.

Source: Mercedes ad

Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations” (10/26/98)

Brand Inside

Brand You!

“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by

independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.”

Thomas Malone and Robert Laubacher

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

“If one quarter can’t make the journey, that’s the way it

has to be.”

Carly Fiorina (1-00/Forbes)

Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].– My current Project is challenging me …– New things I’ve learned in the last 90 days include …– My public “recognition program”

consists of …– Additions to my Rolodex in the last 90 days include …

–My resume is discernibly different from last year’s at this time …

Resume=

Your Annual Report*

*New York Times Magazine [05.14]

Ike’s World Book Page

And Yours?

Assignment …

Construct a 1/8-page or 1/4-page ad for

Brand You … for the Yellow Pages

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

How About It?

Replace your current evaluation process with

Yellow Pages ads.]

They “Get it”?!– stone mason– electrician– plumber– tiler– cabinet maker– contractor– blacksmith– well driller– blaster– sheep shearer– etc.

Icon Woman …

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

Icon Woman …

- She is … at least … a little funky!–Her curiosity is … insatiable!–She thinks screwups are …

as normal as breathing!–She hangs out with some …

seriously rad Dudes!–She is not God. She is not Bionic

Woman. She is … determined to make a damned difference!

“Well-behaved women rarely make history.”

Anita Borg, Institute for Women and Technology

Icon Woman Meets the Web …– submits resume on the Web– recruited on the Web– hired on the Web– trained on the Web– creates and conducts projects with

virtual teams on the Web– manages project and client

follow-up on the Web– manages career/reputation-building

on the Web

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

R.I.P.10 … Major job change [new area of

concentration]; major offsite educational investment; extensive

sabbatical [oddball learning experience of > 2 months];

exceptional community project [presidency of fundraising drive, run

for school board].

R.I.P.

5 ... Extensive course work in oddball area of passionate interest; major off-

the-job activity [community involvement, learn to play the cello,

study Chinese].

1 … Company training, as directed.

Your R.I.P.:

IS IT … FORMAL? IS IT ... WOW!?

R.I.P.

Use by yourself.Use with your mates.

Use [quantitatively?] as a measure of departmental/

P.S.F. renewal.

Use in formal eval process.

Training Y2K

Anytime, anywhere!

Whatever!

Concocted by the employee [“Training Account”]

H.R. to H.E.D. ???

HumanEnablement Department

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

It’s Girls, Stupid!

1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in

high-level math and science courses

More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in

higher numbers

Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)

Source: The Atlantic Monthly (5/2000)

[ … and women are Market Opportunity #1]

Brand Inside

Brand Talent!

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

Tomorrow’s Headlines

“Molecular biologists are up 3 points, economists down 1/4 ,

in moderate trading”futureWEALTH, Stan Davis and

Christopher Meyer

Issue Y2K

The Great War for Talent!

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

Alan Kay on PARC’s Bob Taylor

“He was a connoisseur of

talent.”

A Connoisseur of Talent …

– Spends time on Talent!– Becomes a student of Talent! – Puts Talent “on the agenda”!– Practices D.I.Y.– Uses Plain English! (If you want “sunny” …

ask for “sunny”!)– Creates Workspaces that foster energy,

entrepreneurship and creativity!– Recruits from oddball places!/

Recruits Oddballs!

Talent war, Web-speed!

Every resume or employment question that comes to Lucent via

the Web gets answered in 30 minutes or less. [24/7.]

Red Herring [06.00], on Lucent Director of

Recruitment Jim Baughman

A Connoisseur of Talent …– Recruits M.I. (Gardner: Logical-mathematical,

linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, interpersonal-others)

– Recruits arts!– Becomes de facto C.D.O. (Chief Diversity Officer)– Turns the pay scale upside down!/ Pays Talent!– Rewards & Promotes all on Talent

Development Skills!– Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

“Our business needs a massive transfusion of talent. And talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.” David Ogilvy

“He grew his hair long, played guitar in a rock band, chased

girls, got into trouble. At age 17 he was flogged by his house

master, who described him as ‘the most difficult boy I’ve ever

had to deal with.’ ”

Solution?

Ritalin [“a chemical virtually identical to cocaine”/Reason

magazine]

Or …

Elect Him Prime Minister

Tony Blair*

*talk/May 2000

“Whoever is the most impertinent

has the best chance.”

W.A. Mozart

“Conformity is the enemy of freedom

and the jailer of growth.”

J.F.K.

“How could a nation [Germany] fall

so far so fast? Simple. An epidemic of obedience. The greatest scourge of

mankind.”

Pavel Kohout, The Widow Killer

Yes!

Director of Bringing in the Really Cool People

All You Need to Know?

Chief Evangelist For Really Neat Stuff

Director Of Bringing In The Really Cool People

How About It?

STEAL THESE TWO JOB TITLES!

Talent = Brand

Brand Outside=

Brand Inside

Brand Outside

Context:

No “Commodities”!

In the Beginning …

“The audit has become a commodity.”

Big 5 audit partner to TP

Quality Not Enough!

“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than

a competitive advantage.”

J.D. Power

Quality Not Enough!

“While everything may be better, it is also increasingly

the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

What’s Special?

“Customers will try ‘low cost providers’ because the Majors have not given them any clear

reason not to.”

Leading Insurance Industry

Analyst (10-98)

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

“The ‘surplus society’ has a surplus of similar companies, employing similar

people, with similar educational backgrounds, working in similar jobs,

coming up with similar ideas, producing similar things, with similar

prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

“When we did it ‘right’ it was still pretty

ordinary.”

Barry Gibbons on

“Nightmare No. 1”

Pretzel Crumb-less-ness Plus …

“The Ritz Carlton Experience enlivens the senses, instills

well-being and fulfills even the unexpressed wishes and needs of

the guest.”

from the Ritz Carlton Credo

“Customer Satisfaction” to “Customer “Success”

“We’re getting better at [Six Sigma] every day. But we really

need to think about the customer’s profitability. Are customers’

bottom lines really benefiting from what we provide them?”

Bob Nardelli, GE Power Systems

[Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s world.]

Source: Steve Kerr

Message: The “distributor” is dead. Long live the value-added, knowledge-intensive “business

partner.”

TP’s “Mega-marketing-trends”

Rapidly aging population!Health fanaticism!

Environmental concerns!Freaky independence!

Women rule!

Context: “No” to “inevitable commoditization”

S1: Lead the Customer!S2: Master E-Commerce!

S3: Think Global!S4: Women Rule! (and the elderly)

S5: Design Rules! (too)

S6: It’s the Experience!Net: Glorious Age of the BRAND!

Brand Outside

Strategy 1:

Lead the Customer!

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna


S1: Lead the Customer!

S2: Master E-Commerce!S3: Think Global!

S4: Women Rule! (and the elderly)



Brand Outside

Strategy 2:

Use E-Commerce

to Re-invent the Business!

Dell’s Web sales … daily ?

$35,000,000.

2X = 100 days (Internet traffic)

2X = 9 months (network capacity)

Source: Red Herring (1-00)

Tomorrow Today: Cisco!

90% of $14.4BSave $500M (service and tech

support)

C.Sat e >> C.Sat HCustomer Engineer Chat Rooms ($1B?)

Cherry PickingVertical Markets

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut

Hook: community services (database, catalogs, forums,

industry job bank, etc.)

Message …

COMMUNITY!/ COMMUNITY SERVICES!

B2B

1999 – 2004: 50X

2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)

T

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

Paradox?

Community Services/V.A.

Waste Extraction

Welcome to

D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as

a business go down and

perceived service goes up because customers are conducting it

themselves.” Ray Lane, Oracle

Psych 101: Strongest Force on Earth?

My need to be in perceived control of

my universe!

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

The Supply Side …

The Age of the ChoiceboardThe War of the Choiceboards

Source: Adrian Slywotzky, HBR 1-2/2000 [<1%]

Patricia Seybold’s “Basics”:The E-Customer Bill of Rights

Don’t waste my time!Remember who I am!

Make it easy for me to order and procure service!

Customize your products and services for me!

Source: customers.com

“In the network economy, the Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front,

store interior, sales staff and post-sales support all rolled into one.”

Jakob Nielsen, Designing Web Usability

“Most companies would do more business on the Internet if they

fired their entire marketing department and replaced it with

people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00)

75% of online shoppers don’t complete their

purchase!

Nielsen/Designing Web Usability

All Web projects are customer-interface projects! Simplicity rules!

Make it easy for customers to perform useful tasks!

Less “cool,” more useful!Speed rules!

Nielsen/ Continued

Must work … on a small screen!Must work … w/o graphics loading!

“Scannability” rules! [Users pick out key words.]

Navigation page: No scrolling!Remember: 25% to 50%

“successful use”

“Even if executives of established businesses grasp the impact of new

technologies … they still face a massive competitive disadvantage precisely

because they are incumbents. … They do complex financial calculations and get

bogged down in internal political debates. Insurgents have no such

inhibitions.”

Philip Evans & Thomas Wurster, Blown to Bits

“ … if they set up a completely independent organization and let that organization attack the

parent.”

Clayton Christensen, The Innovator’s Dilemma

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

[Ge Miscellany …

Polymerland: 75% to Web

Appliances: $5 to 20 cents [Web vs. call Service Rep; 20

million calls per year

Source: Fast Company]

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

No Room for “Competent”* Sorts

Beer WholesalersPersonal Trainers [FitLinxx]

Financial PlannersCar Dealers

* LVA, “M”VA … vs. HVA [Web-enhanced]

Web Strategy: GE Power Systems

“Launch and Learn”(4 sites in 30 days)

[He who has the quickest O.O.D.A. Loops* wins!

*Observe. Orient. Decide. Act. / Col. John Boyd]

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

“E-business is the final nail in the coffin

for bureaucracy at GE.”

Jack Welch/GE Annual Report 2000

[ Words to Live By …

“Hierarchy is an organization with its face

toward the CEO and its ass toward the customer.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business]

Getting Right Down to Brass Tacks …

Bricks & Mortar?

Clicks & Mortar?

All Clicks All the time?

#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING

TO GIVE UP THE IN-STORE SHOPPING

EXPERIENCE FOR THE INTERNET IS JUST THAT.

AN IDIOT.

#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO

BE HANGING OUT IN STORES 15 YEARS FROM

NOW IS JUST THAT. AN IDIOT.

TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE

OF THE ABOVE TWO STATEMENTS IS TRUE IS THE BIGGEST IDIOT

OF ALL.

Brand Outside

Strategy 3:

Think Global!

Rule #1

If “it” is [truly] good … then it’s good

enough for … THE WORLD.

Rule #2

There’s no such thing as “too small to

be global.”

Rule # 3

When?

Now.

Rule #4

Hang out … vigorously!

Rule #5

Glom onto a [modest-sized] partner … who

loves/ “gets” you!

Rule #6

Tailor!! [But don’t give

away the store.]

Rule #7

Phil Crosby notwithstanding,

you’ll not [likely] “get it right the first time”!



S3: Think Global!

S4: Women Rule! (and the elderly)



Brand Outside

Strategy 4:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

$3.3T + $1.5T = $4.8T*

* Larger than Japan!

Most Under-reported story!

9M*/28M(1 of 4)/$3.6T [> Germany]

* 400K in ’72; 132% since ’92

Sources: NFWBO, Cognetics, Business Wire (030600)

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,

finances, education.

Source: Business Week (11-99)

Yeow!

1970 … 1%

2000 … 50%

OPPORTUNITY

NO. 1!*

[* No shit!]

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Marketing to Women: Help Them Save Time!

80% … work86% … cook

58% … run errands with kids38% … take child to school

21% … go to the gym21% … take outside classes

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

[ It’s Simple …

Women are more thoughtful and more deliberate

than men!]

Not!!

“Year of the Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“What kind of car does Mommy want?”

“I didn’t know [company] were giving

company cars to secretaries.”

Source: UK financial services CEO, 12/99

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

Not a Morality Play!

“It is critical that we all understand that IBM is not marketing to women

entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge

opportunity.”

Cherie Piebes

Wanna see my “porn”

collection?

“If we are single, they say we couldn’t catch a man. If we are

married, they say we are neglecting him. If we are divorced,

they say we couldn’t keep him. If we are widowed, they say we

killed him.”

Kathleen Brown, on the joys of female political candidacy

Brand Outside

Strategy 5:

Design Rules!

And Tomorrow …

“Fifteen years ago companies competed on price. Now It’s

quality. Tomorrow it’s design.”Robert Hayes

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product

from another in the marketplace.”

Norio Ohga

“Design is treated like a religion at BMW.”

Fortune (10/98)

Drop-dead Charm!

“The new Beetle fails at most categories. The only

thing it doesn’t fail in is drop-dead charm.”

Jerry Hirshberg, Nissan Design International

Object of Desire!

“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in

point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a

sculpture, an object of desire, something that you look at.”

Katherine McCoy, Michael McCoy, Illinois Institute of Technology

Design as Soul

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul of a

man-made creation.”Steve Jobs

Check Out the Language:

“Tomorrow it’s design …”“Design is the only thing …”

“Design is … religion ...”“Drop-dead charm …”“Object of desire …”

“Fundamental soul …”

The I.D. [International Design] Forty*

Airstream … 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

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

Message:Services are Not Intangible!

You “give off” hundreds of design cues … daily!

YOU ARE A DESIGNER!

Graceful language!

Hold a “Beauty Contest!”

1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim

form.2. Rate it on a 1 to 10 scale

(1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity.

3. Repeat … every 15 days.

Campaign Y2K!

Plain, energetic, sparkling English!

Design =

SIMPLICITY … HONESTY … ACCESSIBILITY …

ENJOYMENTJonathan Ive (iMac)

Design =

“There are three basic principles behind any well-

designed product: truth, humanity, and

simplicity.”Sohrab Vossoughi,

Ziba Design

Brand Outside

Strategy 6:

It’s the Experience!

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid

of him.”

Harley exec, quoted in Results-based Leadership

Mantra: “Any good can be ing-ed”

the driving experiencethe pumping experience

the sitting experiencethe reading experiencethe washing experiencethe cooking experience

Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

“This is the end of the pure product era. For instance, car

makers are beginning to understand that the car is a

platform for delivering services that drive the customer

experience.”Carly Fiorina, HP @ Comdex ’99

Marketing Aesthetics

“managing aesthetics experiences” … “aesthetics strategy” … “marketing of sensory experiences that contribute

to the organization’s or brand’s identity” … “mapping strategic vision

to sensory stimuli”

Source: Marketing Aesthetics, Bernd Schmitt & Alexander Simonson

Look + Feel + Taste + Touch + Sound + Smell +

Texture + Color + Typeface + Etc. = EXPERIENCE*

* Bernd Schmitt & Alexander Simonson, Marketing Aesthetics

Brand Outside

BRAND POWER!

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take

up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

No Room for Brands?

NikeSaturnCNN

America OnlineCharles Schwab

StarbucksThe Gap

IntelEtc.

Brand = Trust!

“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”

The Economist

What Can [Can’t] Be Branded?“Branding is not a problem if you have the right mentality. You go to your team and

you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded

sub-$200 watch market, they made it into a brand name, named after the most

irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they

can do it, we can do it.’ ”

Barry Gibbons

“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and

diversity, choices become increasingly informed by belief. [Consumers] want to

know who is behind the products that they buy. They want to know the

company. They want to know what you think.”

Jesper Kunde, Corporate Religion

Brand Power: Calling the Corporate Shrink!

“Organizational Psychotherapy”/

WHO WE ARE!

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology. Stories

create the emotional context people need to locate themselves in a larger experience.”

Brand = You Must Care!

“Success means never letting the competition define you. Instead you have to define

yourself based on a point of view you care deeply about.”

Tom Chappell, Tom’s of Maine

[The “Network” is the Brand!

You (B2Bers) are in the Brand Building

business!]

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Rules of “Radical Marketing”

Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!

Celebrate Craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

Brand Leadership

Passion Rules!

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

Talent “War,” Marketplace “War”

“The successful company has to create an environment that imbues

its employees with a sense of passion.”

Joe Nocera, eCompany, on David Pottruck

“The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in

recruits.”

Burke Stinson, AT&T

[ IN THE END … WHAT MATTERS … IS …

PERCEIVED INTENSITY!]

[Message to NAPM: You are Re-invention Evangelists!]

Ann Richards’ Dogma

Show up!

Know your message!

PUT YOURSELF AT RISK EVERY DAY!

“If you ask me what I have come to do in this world, I

who am an artist, I will reply, I am here to live my

life out loud.”Emile Zola

(Personal) Accountability?!

WHERE WERE YOU DURING THE GREAT ENTERPRISE

REVOLUTION OF Y2K?

How sweet it is!

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti

Benchmark Scotland Glasgow 25 May 2000. 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.:...

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Transcript of Benchmark Scotland Glasgow 25 May 2000. 1 Year = 1.5 Wal*Marts 03.27.99: $167B 03.27.00: $555B P.S.:...