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Tom Peters’ Seminar2002 We Are In A Brawl With No Rules! Princeton.05.15.2002.
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Transcript of Tom Peters’ Seminar2002 We Are In A Brawl With No Rules! Princeton.05.15.2002.
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Tom Peters’ Seminar2002
We Are In A Brawl With No
Rules!Princeton.05.15.2002
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All Slides Available at …
tompeters.comNote: Lavender text in this file is a link.
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CONTEXT
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Confusion Reigns.
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“There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of
change will only accelerate.”Steve Case
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The Destruction Imperative.
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Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
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“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms
listened to their customers, invested aggressively in technologies that would provide their customers more
and better products of the sort they wanted, and because they carefully studied market trends and
systematically allocated investment capital to innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
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Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
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W.I.W. (?): 20 of 26 (7 of top 10)*
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*P&G: 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
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Primary Obstacles to “Marketing-driven Change”
1. 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
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“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable
series of competitive advantages. This is not an age of defensive castles, moats and
armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the
chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer
possible, is now the only level of competition.”
Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering
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“Active mutators in placid times tend to die off. They
are selected against. Reluctant mutators in
quickly changing times are also selected against.”
Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors
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Jim & Tom. Joined at the
hip. Not.
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Axiom (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.
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A White Collar Revolution.
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
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IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
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“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take
over the world.” —Stephen
Hawking, in the German magazine Focus
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IS/IT/Web … “On the Bus” or “Off the Bus.”
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100 square feet
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Dell’s OptiPlex Facility
Big Job: 6 to 8 hours.(80,000 per day)
Parts Inventory: 100 square feet.
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The Real “News”: X1,000,000
TowTruckNet.com
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Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
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WebWorld = Everything
Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web 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 World’s Best at Everything
as next door neighbor
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Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
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Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
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“Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the
number of people they employ … all of that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
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Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
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RESPONSE
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The “PSF Solution”:
The Professional Service Firm Model.
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So what will be the Basic Building
Block of the New Org?
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Every job done in W.C.W. is
also done “outside”
…for profit!
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Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
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TP to NAPM: You are the …
Rock Stars of the
B2B Age!
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eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
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Model PSF …
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(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.
(3) Non-awesome are outsourced (75%??).
(4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!
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“Typically in a mortgage company or financial services company, ‘risk
management’ is an overhead, not a revenue
center. We’ve 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)
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The Heart of the Value
Added Revolution: PSFs Unbound/ The “Solutions
Imperative.”
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Base Case: The Sameness Trap
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“While everything may
be better, it is also increasingly the same.”
Paul Goldberger on retail, “The Sameness of Things,” The New York Times
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“We make over three new product announcements a
day. Can you remember
them? Our customers can’t!”Carly Fiorina
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“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
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“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
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SWA > American +
Continental + Delta + Northwest + United + USAirways.
Source: Boston Globe (12.22.2001)
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Getting 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 it’s financial
security, buying a car, paying for home repairs, or even taking a dream
vacation.”—Martin Feinstein, CEO, Farmers Group
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The Big Day!
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
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“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
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“Customer Satisfaction” to “Customer 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
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Keep In Mind: Customer
Satisfaction versus
Customer
Success
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Was: Bunch of Guys Who Make Circuit Breakers Division.
Is: GE Industrial
Systems.
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Gerstner’s 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).
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“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
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New Springs = Turnkey
Flexible sourcing.Collections.Packaging.
Merchandising.Promotion.
Systems & Site mgt.
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“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public
companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will
transform the real estate market by turning those REITs into national brands. … Mr. Zell
believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.” –New York Times
(12.16.2001)
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Omnicom: 57% (of
$6B) from marketing services
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Who was the number one employer of
architecture school grads in the U.S.
last year?
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Message: Eat Or Be Eaten.
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Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2)
Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer
Success.”
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The …
Solutions25.
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1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.)9. Solutions = “Our ‘culture.’ ”10. Partner with B.I.C. (Best-In-Class). Period.
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12. All functions contribute equally—IS, 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 screwups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”
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21. 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!
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Q: Is that all there is?
A: Quite possibly.
“Roche’s New Scientific Method”—Fast
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.”
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“P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say Over Research”—Advertising
Age (03.25.2002)
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“In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand
armed against them with pencils and paperwork, and archaic computer systems that don’t
talk to each other.”Boston Globe (09.30.2001)
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“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because 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
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Duh???*: “We’ve come up with a solution. … We’ve begun to create a form of
communications that is much better than we had before, and that’s allowed us to gather better data. We’ve 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
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Innovation & Speed’s “New Basics”*
1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems” IS—at home & throughout supply chain. Web based.6. F-L-A-T.
*Innovation, Speed, CRM, “Experience”/ “Solution” demand this
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“Supply Chain” 2000:
“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized
home page. He can interact with the entire scope of Company X’s 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 don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.”
Red Herring (09.2000)
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PSF Unbound+: It’s the
EXPERIENCE.
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“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
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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
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“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
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“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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“Guinness as a brand is all about community.
It’s about bringing people together and sharing
stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
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From “Service’ to “Cause”
7X. 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.
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Westin’s …
Heavenly Bed
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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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): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
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Message:
“Experience” is the
“Last 80%”
P.S.: “Experience” applies to all work!
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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 @ Chuck E. Cheese
(experience economy) $100.00
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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Ladder Position Measure
Solutions Success(Experiences)
Services Satisfaction
Goods Six-sigma
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Words: Partners … Value Added … Intellectual-capital Added … Consultative-skills Added …
Implementation Added … Model “PSF” … Outsourcing (??) …
Acquisitions-led (Omnicom et al.) … “Experiences”- (“Solutions”-) (“Customer Success”-) driven …
NO STOVEPIPES.
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It all adds up to …
THE BRAND.
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The Heart of Branding …
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“WHO ARE WE?”
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“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, you’re 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
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“WHAT’S OUR
STORY?”
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“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand
that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
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“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
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“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It:
See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
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2 Questions:
“How 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
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“WHY DOES IT MATTER TO
THE CLIENT?”
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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
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“Brand 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!
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THE INDIVIDUAL
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Re-inventing the Individual: BRAND
YOU. (Or Else.)
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“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
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Minimum New Work SurvivalSkillsKit2002
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
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Sam’s Secret #1!
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Minimum New Work SurvivalSkillsKit2001
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
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“My ancestors were printers in Amsterdam from 1510 or so until
1750, and during that entire time they didn’t have to learn anything
new.”Peter Drucker, Business 2.0 (08.22.00)
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“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
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26.3
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3 Weeks in May
“Training” & Prep: 187“Work”: 41
(“Other”: 17)
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1% vs.
367%
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Divas do it. Violinists do it. Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it. Surgeons do it. Cops do it.
Astronauts do it. Why don’t businesspeople do it?
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Invent. Reinvent. Repeat.
Source: HP banner ad
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THE WORK
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Redefining the Work Itself I:
The WOW Project.
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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“Let’s make a dent in the universe.”
Steve Jobs
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Re-defining the Work
Itself II: WOW Projects for the
“Powerless.”
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Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
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World’s Biggest Waste …
Selling “Up”
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THE IDEA: Model F4
Find a Fellow
Freak Faraway
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F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
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BOTTOM LINE
The Enemy!
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Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
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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
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“Nobody gives you power.
You just take it.”
—Roseanne
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The
Sales25.
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The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.3. Know the customer. (Including the customer’s 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 customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
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It’s politics, stupid! (Play or sit on the sidelines.)
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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 money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if 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.)
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Great Salespeople …
12. Think “Turnkey.” (It’s 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 vendor’s 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 that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s 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 upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.
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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!
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Re-defining the Work Itself III:
Starting a Wow Projects Epidemic.
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Premise: “Ordering” Systemic Change is a Stupid Waste
of Time!
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Demos! Heroes! Stories!
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Demo = Story
“A key – perhaps the key – to leadership is the
effective communication of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
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MBSA!*
*Managing By Story-ing Around/David Armstrong
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REAL Org Change … The Demo Dance: Demos/ Models/ Heroes/
Stories/ Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers,
Etc.)/ Cheerleaders/ Seekers/ Protectors/ Support Groups
C.f., Bob Stone, Confessions of an Uncivil Servant
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BOSS TALK: What’s the biggest surprise you’ve had this
week? What’s the most interesting thing you’ve found out this week? Who’s the most interesting person
you’ve met this week? How “Wow” is it? Who have you
recruited this week?
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THE TALENT
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Brand = Talent.*
*Duh.
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The Talent Ten
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1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
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Model 25/8/53
Sports Franchise GM
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“The leaders of Great Groups love talent and know where to find it. They revel in
the talent of others.”Warren Bennis & Patricia Ward Biederman,
Organizing Genius
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2. Greatness
Only The Best!
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From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent
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3. Performance
Up or out!
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“We 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
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Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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4. Pay
Fork Over!
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“Top 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)
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5. Youth
Grovel Before the Young!
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“Why 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]
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6. Diversity
Mess Rules!
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“Diversity 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
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7. Women
Born to Lead!
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“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
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The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
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Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret
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“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
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“Investors are looking more and more for a relationship with their financial
advisers. They want someone they can trust, someone who listens. In my experience, in general,
women may be better at these relationship-building skills than are
men.”
Hardwick Simmons, CEO, Prudential Securities
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Okay, you think I’ve gone tooooo far.
How about this: DO ANY OF YOU SUFFER
FROM TOO MUCH TALENT?
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63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
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8. Weird
The Cracked Ones Let in the Light!
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The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
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“Are there enough weird people in
the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)
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Deviants, Inc. “Deviance tells the story of every mass
market ever created. What starts out weird and dangerous
becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way
out there.”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
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Innovation Source No. 1*:
PPPs/ Personally Pissed-off
People
“Branson started Virgin Atlantic because flying other airlines was so dreadful.” —
Fortune/05.13.2002
*And there is no No. 2!
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“The A students work
for the B students. The
C students run the
business. The D students dedicate the buildings.” —Assertion to Kinko’s founder
Paul Orfalea from his Mom (Fortune/05.13.02)
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9. Opportunity
Make It an Adventure!
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“H.R.” to “H.E.D.” ???
Human
Enablement
Department
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10. Leading Genius
We are all unique!
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Beware Lurking HR Types … One size
NEVER fits all. One size fits one. Period.
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48 Players = 48 Projects =
48 different success measures.
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MantraM3
Talent = Brand
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What’s your company’s …
EVP?Employee Value Proposition, per Ed
Michaels et al., The War for Talent
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EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
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TRENDS WORTH
TRILLIONS
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Trends I:
Women Roar.*
*Duh II.
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Women & the Marketspace.
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?????????
Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B
travel equipment)
Houses … 91%Consumer Electronics … 51%
Cars … 60% (90%)All consumer purchases … 83%
Bank Account … 89%Health Care … 80%
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????
80%
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Riding Lawnmowers
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2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
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$4.8T > Japan
9M/27.5M/$3.6T > Germany
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New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
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1874?
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1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
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Yeow!
1970 … 1%
2002 … 50%
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OPPORTUNITY
NO. 1!*[* No shit!]
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Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
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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.”
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“Men seem like loose cannons. Men always move faster through a store’s
aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants,
pick something up, and then, almost abruptly he’s ready to buy. For a
man, ignoring the price tag is almost a sign of virility.”
Paco Underhill, Why We Buy* (*Buy this book!)
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Read This: Barbara & Allan Pease’s
Why Men Don’t Listen & Women Can’t Read Maps
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“It is obvious to a woman when another woman is upset, while a man generally has to physically witness
tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned
sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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“Resting” State: 30%, 90%: “A woman knows her children’s
friends, hopes, dreams, romances, secret fears, what they are
thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes
to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,
but can never find things in fridges, cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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“Female hearing advantage contributes significantly to what is
called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.
They are excellent at imitating animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
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Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
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EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
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“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
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“Women don’t buy
brands. They join them.”
EVEolution
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Not!“Year of the
Woman”
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Enterprise Reinvention!
RecruitingHiring/Rewarding/Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
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“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
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STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
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“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
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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!”
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Psssst! Wanna see my “porn” collection?
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Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ?? (94% = 272)
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0
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Stupid!
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“Customer is King”: 4,440
“Customer is Queen”: 29
Source: Steve Farber/Google search/04.2002
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Trends II: Boomer
Bonanza/Godzilla Geezer.
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Subject: Marketers & Stupidity
“It’s 18-44, stupid!”
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Subject: Marketers & Stupidity
Or is it: “18-44 is stupid,
stupid!”
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
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Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
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“NOT ACTING THEIR AGE: As Baby Boomers
Zoom into Retirement, Will America Ever Be the
Same?”USN&WR Cover/06.01
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Member Growth: 1987 – 1997
18 – 34: 26%35 – 49: 63%
50+: 118%Source: IHRSA
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50+
$7T wealth (70%)/$2T annual income50% all discretionary spending
79% own homes/40M credit card users41% new cars/48% luxury cars
$610B healthcare spending/74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old
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“Advertisers pay more to reach the kid because they think that once someone hits
middle age he’s too set in his ways to be
susceptible to advertising. … In fact this notion of impressionable kids and hidebound geezers is little more
than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of
youth.”—James Surowiecki (The New Yorker/04.01.2002)
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Read This!
Carol Morgan & Doran Levy,
Marketing to the Mindset of Boomers
and their Elders
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“Marketers attempts at reaching those over 50 have
been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter
Francese, founding publisher, American Demographics
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“Households headed by someone 40 or older enjoy 91% ($9.7T) of
our population’s net worth. … The mature market is the dominant
market in the U.S. economy, making the majority of
expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders
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“The mature market cannot be dismissed as entrenched in its
brand loyalties.” —Carol Morgan &
Doran Levy, Marketing to the Mindset of Boomers and Their Elders
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“Focused on assessing the marketplace based on lifetime
value (LTV), marketers may dismiss the mature market as
headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
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“While the average American age 12 or older watched at least five
movies per year in a theater, those 40 and older were the most
frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
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“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-
olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But
who in the fashion industry is currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
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Stupid!
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“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
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No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
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BOTTOM LINE: LEADING IN
TOTALLY SCREWED- UP TIMES
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“I don’t know.”
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The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
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Tex Schramm: The
“too hard” box!
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Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
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“It is no use saying ‘We are doing our best.’ You have got to succeed in doing
what is necessary.” —WSC
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“To Don’t ” List
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Danger: S.I.O. (Strategic
Initiative Overload)
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Ridin’ with Roger: “What have you done to
DRAMATICALLY IMPROVE quality in the
last 90 days?”
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Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
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“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
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MantraM3
Talent = Brand
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Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the
message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,
major consumer goods company
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“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
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!
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“Soft” Is “Hard”
—ISOE
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,
Engagement, Commitment, Great Causes & Determination to Make a
Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
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TP: If you don’t LOVE SALES … find
another life. (Don’t pretend
you’re a “leader.”) (See TP’s The Project50.)
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TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend
you’re a “leader.”)
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If you’re not pissing people off, you’re not making
a difference!
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“It was much later that I realized Dad’s secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a
bishop or a college president. He was seriously interested in who you were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
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“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
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Leaders don’t just make products and make decisions.
Leaders make meaning. – John Seeley Brown
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“Warren, I know you want to ‘be’
president. But do you want to ‘do’
president?”
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“LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES”
#49
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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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Thank You!