Tom Peters Seminar2004 NEW SLIDES

Tom Peters

Seminar2004

NEW SLIDES

10.22.04

Kevin Roberts*:

Lovemarks!

*CEO/Saatchi & Saatchi

“In Dove Ads, Normal Is the New

Beautiful” —Headline,

Advertising Age/09.27.04

10.21.04

"I long to accomplish a great and noble task, but it is my chief duty

to accomplish humble tasks as though they were great and

noble. The world is moved along not only by the mighty shoves of

its heroes but also by the aggregate of the tiny pushes of each honest worker.” —Helen Keller

My Story.

Sarah: “ Papa, what do you do?”

Papa: “I’m ‘overhead.’ ”

Sarah: “ Daddy, what do you do?”

Papa: “I’m a ‘bureaucrat.’ ”


Papa: “I manage a ‘cost center.’ ”

“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)

Rainmaker-in-Chief

“[Sam] Palmisano’s strategy is to expand tech’s borders by pushing

users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it

at $500 billion a year—that technology

companies have never been able to touch.” —Fortune/06.14.04

Six Market Profiles

1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for Convictions

Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

’70s: Cost (BCG’s “cost curves”)

’80s: TQM-CI (Japan)

’90s: Service

’00s: Solutions/Experiences’10s: Dream Fulfillment

Market Power = Story Power = Dream Power

FLASH:

Innovation is

easy!

Why Do I love Freaks?

(1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of us—and our organizations—are in ruts. Make that chasms.)

Six Market Profiles

1. Adventures for Sale/IBM2. The Market for Togetherness, Friendship and Love/IBM3. The Market for Care/IBM4. The Who-Am-I Market/IBM5. The Market for Peace of Mind/IBM6. The Market for Convictions/IBM


A Coherent Story: Context-Solution-BedrockContext1: Intense Pressures (China/Tech/Competition)

Context2: Painful/Pitiful Adjustment (Slow, Incremental, Mergers)

Solution1: New Organization (Technology, Web+ Revolution, Virtual-“BestSourcing,”“PSF” “nugget”)

Solution2: No Option: Value-added Strategy (Services- Solutions-Experiences-DreamFulfillment “Ladder”)

Solution3: “Aesthetic” “VA” Capstone (Design-Brands)

Solution4: New Markets (Women, ThirdAge)

Bedrock1: Innovation (New Work, Speed, Weird, Revolution)

Bedrock2: Talent (Best, Creative, Entrepreneurial, Schools)

Bedrock3: Leadership (Passion, Bravado, Energy, Speed)

10.18A.04

“Americans are not embarrassed by ambition.

There is no particular enthusiasm here about

making it look like you are not trying.” —Larry Summers (explaining why

Americans, among other things, win 75% of Nobels)

10.18.04

“Europe’s Top 100 Growth Companies”/ BusinessWeek/25October2004

Britain ………….. 31 Germany ………. 24 Italy …………….. 9 France …………. 6 Netherlands …... 5 Sweden ………... 1* Denmark ………. 0

*New Wave Group (#59)

10.17.04

“We all agree your theory is crazy. The question, which divides us, is whether it is crazy enough.”

—Physicist Niels Bohr, to Wolfgang Pauli

New Economy Biz Degree Programs

MBA (Master of Business Administration)

MFA (Master of Fine Arts)

MMM1 (Master of Metaphysical Management)

MMM2/MM (Master of Metabolic Management, or Master of Madness)

MGLF (Master of Great Leaps Forward)

MTD (Master of Talent Development)

G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate)

DE (Doctor of Enthusiasm)

-Formulaic intelligence (health record clerks, 63%/36K;

secretaries & typists, 30%/1.3M; bookkeepers, 13%/247K)

Manual dexterity (sewing machine ops, 50%/347K; lathe ops, 49%/30K; butchers, 23%/67K)

Muscle power (timber cutters, 32%/25K; farm workers, 20%/182K)

Source: “Where the Jobs Are”/NYT/05.13.2004/data 1994-2004

+People skills & emotional intelligence (financial service sales, 78%/248K; RNs, 28%/512K; lawyers, 24%/182K)

Imagination & creativity (architects, 44%/60K; designers, 43%/230K; photographers, 38%/50K)

Analytic reasoning (legal assts, 66%/159K; electronic engs, 28%/147K)


10.16.04

“UPS used to be a trucking

company with technology. Now it’s a technology

company with trucks.” —Forbes

Measure “Strangeness”/Portfolio Quality

StaffConsultants

BoardVendors

Out-sourcing Partners (#, Quality)

Innovation Alliance PartnersCustomers

Competitors (who we “benchmark” against)

Strategic Initiatives Product Portfolio (LineEx v. Leap)

IS/ITHQ LocationLunch Mates

Language

10.15A.04

The Power Is the Story

10.15.04

Market Power = Story Power

Brand = Story

Story > Brand

10.15.04

“Business people don’t need to ‘understand

designers better.’ Businesspeople need to be designers.” —Roger Martin/Dean/Rotman

Management School/Univ of Toronto

“We have to move up the value chain and focus increased efforts on becoming a knowledge-based, entrepreneurial economy if we are to prosper in the medium to long

term.” —Tony Dromgoole, Chief Executive, Irish Management Institute

“In China’s Countryside, Farmers Are Cultivating

Agribusiness Explosion as Subsidies Cut U.S. Export Dominance” —Headline/p1/WSJ

Europe/10.15.04

“GM Europe to Slash Costs in Blow to German Workers:

Loss-ridden Automaker Facing Asian Onslaught, to

Cut up to 12,000 Jobs”

—Headline/p1/WSJ/10.15.04

“The essence of American presidential leadership,

and the secret of presidential success, is

storytelling.” —Evan Cornog, The Power

and the Story: How the Crafted Presidential Narrative Has Determined Political Success from George Washington to

George W. Bush

“The global economy is anti-balance. For as much as Accenture and Google say they value an environment that

allows workers balance, they’re increasingly competing against companies that don’t.

You’re competing against workers with a lot more to gain than you, who will work harder

for less money to get the job done. This is the dark side of the ‘happy workaholic’ Someday,

all of us will have to become workaholics, happy or not, just to get by.” —Fast Company/10.04

(“Balance Is Bunk,” by Keith Hammonds)

10.14.04

’70s: Cost (BCG’s “cost curves”)

’80s: TQM-CI (Japan)

’90s: Service’00s: Solutions/Experiences’10s: Dream Fulfillment

Six Market Profiles

1. Adventures for Sale/IBM2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market/IBM5. The Market for Peace of Mind/IBM-UPS6. The Market for Convictions/IBM


10.13A.04

Calendars do not lie. (Period.)

07.04/TP In Nagano …

Revenue: $10B

FTE: 1*

*Maybe


Papa: “I’m ‘overhead.’ ”

60,000/26

600/200

168/18,500/51,000

“Let China sleep, for when

she awakes she will shake the world.”

“Let China sleep, for when she awakes she will shake the world.” —Napoleon

+49%/profits

+52%/revenue

Source: WSJ/10.13.2004/“Infosys 2nd-Period Profit Rose Amid Demand for Outsourcing”

A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.”

“Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I

give you my word as a gentleman that I will pay you what you ask.”

The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single

sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent.

And paid him the agreed-upon $25,000.

1. Every morning, write a list of the things that need to be done that day.

2. Do them.

Source: Hugh MacLeod/tompeters.com/NPR

Rogaine.

Help Keep Your Hair.

Help Keep Your Confidence.

Source: Ad on the side of a bus/Dublin/10.04

Product: Rogaine.

Solution: Help Keep Your Hair.

Dream-come-true: Help Keep Your Confidence.

Source: Ad on the side of a bus/Dublin/10.04

10.13.04

“Don’t get left on the shelf: Innovation, not advertising, is the solution to FMCG [Fast-Moving Consumer Goods] companies’ problems with

retailer power and own-label brands” —Headline/FT/10.12.04

“Don’t get left on the shelf: Innovation, not advertising, is the solution to FMCG [Fast-Moving

Consumer Goods] companies’ problems with retailer power

and own-label brands” —Headline/FT/10.12.04

“I’m worried our business model might run out of steam in two or three years. We make lots of incremental product

improvements, get them to launch as quickly as we can and then fire a big cannon full of marketing dollars at them. But each time the lifetime of that product gets shorter and the amount of dollars we spend gets higher. Eventually there will be no dollars

left.” —CEO/FMCG co./FT/10.12

“Judging by the profit warnings from a bunch of FMCG giants [Colgate, Unilever, Coke, Cadbury], that time is already upon us. [The FMCGs] have a solution: spend more on advertising. Good

luck to them. We tell our clients something different: It’s too late. Rather than frittering margins on ever bigger ad budgets,

companies must start to innovate.” —Tim Thorne, CEO, Edengene/corporate growth consultants/FT/10.12

“Passionate amateurs, empowered by technology and linked to one another, are reshaping business,

politics, science and culture.” —Charles Leadbeater/Fast

Company/10.2004

“An estimated 60 to 90 percent of doctor visits involve stress-related

complaints.” —Newsweek/09.27.2004

10.12.04

Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press

“The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit

anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.”

Approximately 640 Index entries: Customer/s (service,

retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0.

Innovation (product development, research & development, new products), 0.

10.11.04

Three for the Ages

GETTING TO YES … Roger Fisher, William Ury, Bruce Patton

LEARNED OPTIMISM … Martin Seligman

CRUCIAL CONFRONTATIONS … Kerry Patterson, Joseph Grenny, Ron

McMillan, Al Switzler

“Success or Failure”? Try Instead “Optimism or Failure”!

From Martin Seligman’s Learned Optimism: “I believe the traditional wisdom is incomplete. A composer can have all the talent of a Mozart and a passionate desire to succeed, but if he believes he cannot compose music, he will come to nothing. He

will not try hard enough. He will give up too soon when the elusive right melody takes too long to materialize. Success requires persistence, the ability to not give up in the face of

failure. I believe that … OPTIMISTIC EXPLANATORY STYLE … is the key to persistence.

“The optimistic-explanatory-style theory of success says that in order to choose people for success in a challenging job, you

need to select for three characteristics: (1) Aptitude. (2) Motivation. (3) Optimism. All three determine success.”

(Note: Seligman’s extensive work with Met Life salespeople, among others, proved out the above—in spades.)

Pessimist: Good things … “I’m worthless, but got lucky on this one.”

Bad things … “I’m a bozo who deserved my sorry fate.”

Optimist: Good things … “I deserved that; I’m the cat’s meow.” Bad things … “I’m the cat’s meow, but the cat had

an unlucky day; tomorrow will be better for sure.”

“Reuters Plans To Triple Jobs at Site In India” —Headline/

New York Times/ World Business/10.08.04/10% of total workforce in Bangalore by 2006

One company’s answer:

CXO*

*Chief eXperience Officer

BUILT TO … DETERIORATE!

“When it comes to investing, I am old school. Buy a good stock, stick it in the drawer and when you check back years later the stock should be worth more. There’s only one problem. When I checked the drawer

recently it was full of clunkers, including Lucent, down 94 percent from its 1999 high. Maybe once upon a time buy and hold was a viable strategy.

Today, it no longer makes sense.”—Charles Stein/ “Investment Strategies Must Shift with Realities”/Boston Globe/10.10.04

A sample of Stein’s “Blue Chip-turned-clunker” examples: Fannie Mae (featured in Collins’ Good to Great). Coke. (“Clunker,” make that

“Stinker.”) Merck. (The mightiest fall—stock down 63 percent since 2000; tumble preceded Vioxx) Uh … Microsoft. (“Microsoft’s stock price is no

higher today than it was in 1998.”)

“It is not clear there is such a thing as a ‘Blue Chip,’” Shawn Kravetz, president of Boston-based hedge fund Esplanade Capital, told Stein. “Kravetz’s point is a serious one,” Stein continues. “Greatness is not

permanent. … This process of creative destruction isn’t new. But with the world moving ever faster, and with competition on steroids, the quaint

notion of buying and holding is hopelessly out of step.”

DESIGN IS INEVITABLE! DESIGN IS THE DIFFERENCE!

DESIGN RULES!

10.10.04

“WHAT’S THE

DREAM?”

Design Rules!Excerpts from Virginia Postrel’s The

Substance of Style: How the Rise of Aesthetic Value Is

Remaking Commerce, Culture and Consciousness

10.10.2004

“If modernist design ideology promised efficiency, rationality

and truth, today’s diverse aesthetics offers a different

trifecta: freedom, beauty and pleasure.” —Virginia Postrel, The Substance of Style:

How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“Having spent a century or more focused on other goals—solving manufacturing problems, lowering

costs, making goods and services widely available, increasing convenience, saving energy—we are

increasingly engaged in making our world special. More people in more aspects of life are drawing

pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the

chance, we’re adding sensory, emotional appeal to ordinary function.” — Virginia Postrel, The Substance of Style: How

the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“As soon as the Taliban fell, Afghan men lined up at barber shops to have their beards shaved off. Women

painted their nails with once-forbidden polish. Formerly clandestine beauty salons opened in prominent

locations. Men traded postcards of beautiful Indian movie stars…. Even burka merchants diversified their wares, adding colors like brown, peach and green to the blue and off-white dictated by the Taliban’s whip-wielding virtue police. Freed to travel to city markets,

village women demanded better fabric, finer embroidery and more variety in their traditional

garments.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more

indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the age of convenience or Ford was to the age of mass

production—the touchstone success story, the exemplar of all that is good and bad about the

aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” —Virginia Postrel, The Substance of Style:

How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“Elaborating on the techniques of one-of-a-kind boutique hotels, Starwood Hotels &

Resorts [W, Sheraton, Westin] has adopted a strategy of

‘Winning by design.’ ” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking

Commerce, Culture and Consciousness

“The lowliest household tool has become an object of color, texture, personality, whimsy, even elegance. Dozens, probably

hundreds, of distinctively designed toilet-brush sets are available—functional, flamboyant, modern, mahogany. For

about five bucks, you can buy Rubbermaid’s basic plastic bowl brush with caddy, which comes in seven different colors, to

hide the bristles and keep the drips off the floor. For $8 you can take home a Michael Graves brush from Target, with a rounded

blue handle and translucent white container. At $14 you can have an OXO brush, sleek and modern in a hard, shiny white plastic holder that opens as smoothly as the bay door on a science-fiction spaceship. For $32, you can order Philippe

Starck’s Excalibur brush, whose hilt-like handle creates a lid when sheathed in its caddy. At $55 there’s Stefano

Giovannoni’s Merdolino brush for Alessi … Cross the $100 barrier, and you can find all sorts …” —Virginia Postrel, The

Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

The SE17: Origins of Sustainable

Entrepreneurship

Tom Peters/10.10.2004

SE17/Origins of Sustainable Entrepreneurship

1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab,

Starbucks, Oracle, Sun, Fox, Stanford University, MIT)2. Perpetually determined to outdo oneself, even to the

detriment of today’s $$$ winners (Apple, Cirque du Soleil, Microsoft, Nokia, FedEx)

3. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)

4. Culture of Outspoken-ness (Intel, Microsoft, FedEx, CitiGroup, PepsiCo)

5. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft)


6. “Culturally” as well as organizationally Decentralized (GE, J & J, Omnicom)7. Multi-entrepreneurship/Many Independent-minded Stars (GE, Time Warner)8. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J & J, Virgin)9. Scour the world for Ingenious Alliance Partners—especially exciting startups (Pfizer)10. Don’t overdo “pursuit of synergy” (GE, J & J, Time Warner)11. Find and Encourage and Promote Strong-willed/ Independent people (GE, PepsiCo)12. Ferret out Talent … anywhere and everywhere/ “No limits” approach to retaining top talent (Nike, Virgin, GE, PepsiCo)


13. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo)14. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general)15. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo)16. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin, old Raychem) (God help you when #2 is missing: Enron)17. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)

10.07.04

“My life is my

message.”Gandhi

“Dreams are ideas with

passion.” —Phil Harkins & Keith

Hollihan, Everybody Wins (the RE/MAX story)

09.30.04

1Y/2N: Commerce Bank2 Pizzas: JB

Plastic Bulldozer: MD

“A man without a smiling face

must not open a shop.” —Chinese Proverb*

*Courtesy Tom Morris, The Art of Achievement

“The only reason they come to se me is that I know that life is great—and they

know I know it.” —Clark Gable*


“Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge*


“Five Clichés of Women (as Portrayed by Advertisers) …

Perfect MumAlpha FemaleFashionista

Beauty BunnyGreat Granny”

Source: The Independent /09.29.04 (on forthcoming “First London ‘Think Pink’ Conference”)

“Unilever brand Dove’s use of six generously proportioned ‘real women’ to promote its skin-firming preparations must qualify as one of the most talked-about marketing decisions taken

this summer. It was also one of the most successful: Since the campaign broke, sales of the firming lotion have gone up 700 percent in

the UK, 300 percent in Germany and 220 percent in the Netherlands.” —Financial

Times/09.29.04

“Motown Is Stealing Hollywood’s Best Tricks …

With Oprah’s 276-car giveaway all over the news last week, GM got just what it

wanted: a blockbuster debut [for its ‘unheralded Pontiac G6’].”

Source: Newsweek/09.27.04 (Cost: $7 million … “A car that gets off to a slow start has little hope of ever losing the stigma of distressed merchandise.”)

09.28.04

“To win this race, Kerry needs to stop focusing on Election Day and start

thinking about his would-be presidency’s last day. What does he want his legacy to be? When sixth-graders in the year 2108 read about the Kerry presidency, what does he want the one or two sentences that

accompany his photo to say?” —Kenneth Baer/Washington Post/092604

Narrowcast World …

Infomercials … $256 billion Quantity … 250,000 per month (U.S. & Canada) Growth rate … 10% p.a. Purchases … $91 billion Price … $50/30-minutes to $15,000/30 min Source: Washington Post/09.26.04

60,000

600/200

168/18,500/51,000

60,000*

*New factories in China opened by foreigners/2000-2003/

Edward Gresser, Progressive Policy Institute/Wall Street Journal 09.27.04

Ex2004:Excellence

Found!Tom Peters

09.24.2004

And the Winner is …

1. Audacity of Vision2. Innovation/R&D/Design3. Talent Acquisition & Development4. Resultant “Experience”5. Strategic Alliances6. Operations7. Financial Management8. Overall/Sustaining Excellence9. “Wow!”

Cirque du Soleil!

Cirque du Soleil: Talent (12 full-time

scouts, database of 20,000). R&D (40% of

profits; 2X avg corp). Controls (shows are profit centers; partners like Disney offset costs;

$100M on $500M). Scarcity builds buzz/brand (1 new show per year. “People tell me we’re leaving money on the table by not duplicating our shows. They’re right.”—Daniel

Lamarre, president).Source: “The Phantasmagoria Factory”/Business 2.0/1-2.2004

Ex2004

Cirque du Soleil

Infosys

Build-A-Bear

Oceanic Aspirations …

“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of

strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business

innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in

spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice.

Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential

restructuring of the way the world operates and how value will be created in the future.”

—Narayana Murthy, chairman’s letter, Infosys Annual Report 2003

Build-A-Bear

--1997 to 2004: $0 to $300M

--Maxine Clark/CEO (25 yrs May Dept Stores)

--Build-A-Bear Workshops

--Engagement! (“Where Best Friends Are Made”)

--Theater!

--http://www.buildabear.com/buildaparty

Best Web Site?

buildabear.com

09.21.04

The Hunch of a Lifetime: An Emergent (Market) Nexus

I have a sense/hunch there’s an interesting nexus among several of the ideas about New Market Realities that I promote … namely Women-Boomers-Wellness-Green-Intangibles. Each one drives the Fundamental (Traditional) Economic Value Proposition toward the “softer side”: From facts- & figures-obsessed males toward relationship-oriented Women. From goods-driven youth toward “experiences”-craving Boomers. From quick-fix & pill-popping “healthcare” toward a holistically inclined “Wellness Revolution.” From mindless exploitation of the Earth’s resources toward increased awareness of the fragility and preciousness of our Environment. From “goods” and “services” toward Design- & Creativity-rich Intangibles-Experiences-Dreams Fulfilled. This so-called “softer side”—as the disparate likes of IBM’s Sam Palmisano and Harley-Davidson’s Rich Teerlink teach us—is now & increasingly “where the loot is,” damn near all the loot. That is, the “softer side” has become the Prime Driver of tomorrow’s “hard” economic value. Furthermore, each of the Five Key Ideas (Women-Boomers-Wellness-Green-Intangibles) feeds off and complements the other four. Dare I use the word “synergy”? Perhaps. (Or: Of course!) I can imagine an enterprise defining its raison d’etre in terms of these Five Complementary Key Ideas. (HINT: DAMN FEW DO TODAY.)

An Emergent Nexus

Men …………………………….……………….... WomenYouth ………………………………… Boomers/Geezers“Fix It”Healthcare………………... Wellness/PreventionExploit-the-Earth ……...... Preserve/Cherish the PlanetTangibles ……………………………………… Intangibles

Ye gads: “Thomas Stanley has not only found no correlation between success in school and an

ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-

related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.

Yet the success-failure standards of most schools penalized risk takers. Most educational

systems reward those who play it safe. As a result, those who do well in school find it hard to

take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

09.17.04

“We’re now entering a new phase of business where the group will be a

franchising and management company where brand management is central.”

—David Webster, Chairman, InterContinental Hotels Group

“InterContinental will now have far more to do with brand ownership than

hotel ownership.” —James Dawson of Charles Stanley

(brokerage)

Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance

“What I am really wanting to do is a design school, to teach the sensibility that

goes into the building of a business into a company with

a point of view.” —Ralph Lauren, International Herald Tribune/09.16.2004

“A focus on cost-cutting and efficiency has helped many

organizations weather the downturn, but this approach will ultimately render them obsolete. Only the

constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka,

Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

“A man can stand anything except a

succession of ordinary days”

—Goethe

“[At Pfizer, Merck, Unilever, Nestle] and other companies, the standard stage-gate approach to

product development has become ingrained that it has driven out the very innovative thinking that it was designed to encourage. And while the returns on

innovation effort appear to be falling for large companies, it is often the unheralded start-up or new entrant that comes up with the latest hit product. …

Thus, Coca-Cola, once celebrated for its innovation and vision, has been late to every new trend in the drinks

industry in the past decade, from sports drinks to bottled water.” —Julian Birkenshaw, Rick Delbridge & John Bessant,

“A Leap into the Unknown,” FT/09.17.04

On Great Innovation Leaps

“Tune into weak signals inside the firm … A good place to look for new ideas is distant

foreign subsidiaries, smaller business units and affiliated companies that the company does not even wholly own. For example, Diageo’s highly successful Smirnoff Ice originated in Australia as Stolichnaya before it was picked up by the corporate marketing department as a product

with global potential.” —Julian Birkenshaw, Rick Delbridge & John Bessant, “A Leap into the Unknown,” FT/09.17.04

09.13.04

“About a year ago I hired a developer in India to do my job. I pay him $12,000 to do the job I get paid $67,300

for. He is happy to have the work. I am happy that I only have to work about 90 minutes per day (I still have to attend meetings myself, and I spend a few minutes

every day talking code with my Indian counterpart.) The rest of my time my employer thinks I’m telecommuting.

They are happy to let me telecommute because my output is higher than most of my coworkers. Now I’m considering getting a second job and doing the same

thing with it. That may be pushing my luck though. The extra money would be nice, but that could push my

workday over five hours.” —from posting at Slashdot (02.04.04), reported by Dan Pink, A Whole New Mind

“Most of what I see is elimination

of the middle people.” —Lee Scott, CEO, Wal*Mart, on

the relentless drive to even further reduce costs (Christmas tree lights at Asda v. Wal*Mart USA: $21 v $6, same factory)

“For a woman, speech has a clear purpose: to build relationships and make friends—not to solve

problems. A woman can spend two weeks on vacation with her girlfriend and, when she returns home,

telephone the same girlfriend and talk for another two hours. For a man, not talking is perfectly natural. For

men, to talk is to relate the facts. Men see the telephone as a communication tool for relaying facts and information to other people, but a woman sees it

as a means of bonding.” —Allan Pease & Barbara Pease, Why Men Can Only Do One Thing at a Time and Women Never Stop Talking

How many men does it take to change a roll of toilet paper?

It’s unknown. It’s never happened.

Source: Allan Pease & Barbara Pease, Why Men Can Only Do One Thing at a Time and Women Never Stop Talking

“Society today is determined to believe that men and women possess

the same skills, aptitudes and potentials—just as science, ironically,

is beginning to prove that we are completely different. —Allan Pease & Barbara

Pease, Why Men Can Only Do One Thing at a Time and Women Never Stop Talking

“The latest mobiles, on sale for $200 to $300 in Japan, function as wallets, letting people pay

their utility bills or buy movie tickets by putting their handset near a reader. … New I-mode

phones also have a bar-code-reading camera that people can point at the bar code on a

magazine or poster, taking them straight to the Website with updated and detailed information on, say, a concert or a discount sale.” —“Super

Phone: Kei-Ichi Enoki, a founding father of the mobile Web, is moving beyond email and games to make the phone a remote

control for living” (Forbes Global/09.20.2004)

“Never let reality get in the way of

imagination” —Azar Nafisi, author of Reading Lolita in Teheran

(from Audi’s “Never Follow” Website)

“Learn not to be

careful”

—Photographer Diane Arbus to her students (Careful = “The sidelines,” per Harriet Rubin in The Princessa)

“Never bite off less than

you can chew” —Freddy Adu, teenage soccer phenom (from Audi’s

“Never Follow” Website)

Self-serve Nation!

Radisson: check-in via Web up to 1-week prior to arrival

Holiday Inn: computer menu, also keeps track bill and a running total of calories

and carbs

Hilton: roaming check-in clerks, WiFi-enabled

Source: USA Today/08.31.04

“We don’t see Pele’s work as destruction but as

cleansing. She’s a creator. When she comes through she wipes the land clean and leaves us new fertile

ground.” —Keola Hanoa, on the Big Island’s volcanoes (National Geographic/10.04)

“When the Silk Road Gets Paved”/Forbes Global/09.04

Express highways: 168 miles in ’89 … 18,500 in ’03 … 51,000 in ’08 (v. U.S.

Interstate: 46,500)

Implications: $200M Intel plant in Chengdu (pop. 9.9M); 1/3rd Shanghai

wage rate

International Herald Tribune

/09.13.2004: P1/600 foreign R&D labs in China, 200 new

per year

New Delhi/09.13.2004/The Economic Times

P1: “Airport Traffic Racks Up 26% Growth in 4 Months”

P1: “EMPLOYABLE GRADUATES IN DEMAND” (“The Business Process Outsourcing sector is facing a roadblock. …BPO companies are struggling to hire new employees in sufficient numbers. …”)

P11: “Tourist Arrivals Surge 26% in Lean Apr-Aug”

BLS/Payroll Survey: 500K since 11.01

BLS/Household Survey: 3.25M since 11.01

“In other words, millions of people are not reporting to work. They are

starting businesses. … Traditional payroll jobs aren’t coming back in in

big numbers.” —Rich Karlgaard, Publisher, Forbes (09.20.04)

09.05.04

“The era of ‘left brain’ dominance—and the

Information Age it engendered—is giving way to a new world in which ‘right brain’ qualities—

inventiveness, empathy, meaning—will govern.” —Dan Pink, A

Whole New Mind

“The past few decades have belonged to a certain kind of person with a certain kind of mind—computer

programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch

numbers. But the keys to the kingdom are changing hands. The future belongs to a very different kind of

person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers.

These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its

greatest joys.” —Dan Pink, A Whole New Mind

L-Directed Thinking: sequential, literal, functional, textual,

analyticto

R-Directed Thinking: simultaneous, metaphorical,

aesthetic, contextual, syntheticSource: Dan Pink/A Whole New Mind

“Left-brain style thinking used to be the driver, and right-brain style thinking the passenger. Now R-Directed Thinking is

suddenly grabbing the wheel, stepping on the gas, and determining where we’re

going and how we’re going to get there. L-Directed aptitudes—the kind measured by the SAT and employed by CPAs—are still

necessary. But they’re no longer sufficient.” —Dan Pink, A Whole New Mind

The Big Three Drivers of Change

Abundance

Asia

Automation

Source: Dan Pink, A Whole New Mind

“But abundance has also produced an ironic result: The very triumph of L-Directed Thinking has lessened its significance. The prosperity it has

unleashed has placed a premium on things that appeal to less rational,

more R-Directed sensibilities—beauty, spirituality, emotion.” —Dan Pink,

A Whole New Mind

India

350,000 engineering grads per year

>50% F500 outsource software work to India

GE: 48% of software developed in India (Sign in GE India office: “Trespassers will be recruited”)


Software’s Enormous Inroads

Docs

Lawyers

Accountants


Agriculture Age (farmers)

Industrial Age (factory workers)

Information Age (knowledge workers)

Conceptual Age (creators and empathizers)


Bob Lutz: “It’s more right brain. I see us being in the art

business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.”

Source: NYT 10.19.01

“The MFA is the new

MBA.” —Dan Pink, A Whole New

Mind

“What does this mean for you and me? How can we prepare for the conceptual age? On one

level, the answer is straightforward. In a world tossed by Abundance, Asia and Automation, in a which L-Directed Thinking remains necessary

but no longer sufficient, we must become proficient in R-Directed Thinking and master aptitudes that are ‘high concept’ and ‘high touch.’ But on another level, that answer is

inadequate. What exactly are we supposed to do?” —Dan Pink, A Whole New Mind

Design.Story.

Symphony.Empathy.

Play.Source: Dan Pink, A Whole New Mind

Not just function, but also … DESIGN.Not just argument, but also … STORY.Not just focus, but also … SYMPHONY.

Not just logic, but also … EMPATHY.Not just seriousness, but also … PLAY.


“Thousands of years of history suggest that the schoolhouse as we know it is an absurd way to rear our young; it’s contrary to everything we know about what it is to be a human being. For example, we know that

doing and talking are what most successful people are very good at—that’s where they truly show their stuff. We know that reading and writing are important, but

also that these are things that only a small and specialized group of people is primarily good at doing.

And yet we persist in a form of schooling that measures our children’s ‘achievement’ largely in the latter terms, not the former … and sometimes through written tests

alone.” —Deborah Meier, Foreword to Dennis Littky’s The Big Picture

The Real Goals of Education/Dennis Littky/The Big Picture

*Be lifelong learners*Be passionate

*Be ready to take risks*Be able to problem solve and think critically

*Be able to look at things differently*Be able to work independently and with others

*Be creative*Care and want to give back to their community

*Persevere*Have integrity and self-respect

*Have moral courage*Be able to use the world around them well

*Speak well, write well, read well, and work wel with numbers*AND TRULY ENJOY THEIR LIFE AND WORK

“What we want to see is the child in pursuit of knowledge, and not

knowledge in pursuit of the child.” —George Bernard Shaw

“Teaching is listening.

Learning is talking.” —Message painted on a Met

advisor’s truck by his students (from Dennis Littky, The Big Picture)

“We have plenty of people who can teach what they know, but

very few who can teach their own capacity to

learn.” —Joseph Hart, educator

“From the media, we hear these great tearjerker stories of kids who succeeded despite the odds. But all of our kids are facing the odds of an education system that is

all wrong. The odds are against them because the system works against them instead of with them. … I see it every day: kids who people have dismissed as

‘dumb in math’ or ‘uninterested in science’ or ‘nonreaders’ doing incredible things in these exact

same areas because they were (finally) allowed to start with something they were already interested in. A 9th-

grade kid who ‘hates science’ sees a movie about freezing people, then decides to read a college biology text on cryogenics, and then gives a presentation on it

that blows your socks off.” —Dennis Littky, The Big Picture

“The leader must have infectious optimism. … The final test of a leader is the feeling you

have when you leave his presence after a conference.

Have you a feeling of uplift and confidence?” —Field Marshall Bernard

Montgomery

“Make it fun to work at your agency. …

Encourage exuberance. Get rid

of sad dogs who spread gloom.” —David Ogilvy

The “Intangibles Economy” Reaches Botswana

“Mma Ramotswe had a detective agency in Africa, at the foot of Kgale Hill. These were its assets: a tiny

white van, two desks, two chairs, a telephone, and an old typewriter. Then there was a teapot, in which Mma

Ramotswe—the only lady private detective in Botswana—brewed redbush tea. And three mugs—one for

herself, one for her secretary, and one for the client. What else does a detective agency reallly need? Detective agencies rely on human intuition and

intelligence, both of which Mma Ramotswe had in abundance. No inventory would ever include those, of course.” —Alexander McCall Smith, The No. 1 Ladies’ Detective Agency

Support for Free Trade/>$100,000

1999: 57 %

2004: 28%Source: Dan Pink, A Whole New Mind

The Perils of Imitation

“While the HealthTech team agreed they could outdo the competition’s brochures, they failed to

recognize that something had changed while they sat around the conference table picking

apart the competition. Their mission had shifted from the legitimate business goal of creating a powerful brochure designed to drive sales, to

the egocentric exercise of beating what the competition had produced. In effect, the focus shifted from the battlefield to bragging rights.”

—Mark Stevens, Your Marketing Sucks.

Best Web Site?

buildabear.com

Build-A-Bear

--1997 to 2004: $0 to $300M

--Maxine Clark/CEO (25 yrs May Dept Stores)

--Build-A-Bear Workshops

--Engagement! (“Where Best Friends Are Made”)

--http://www.buildabear.com/buildaparty

Bottom line: No promotion to senior levels of public or private enterprise should ever again be granted to anyone who does not present a CV saturated by a clear and compelling demonstration of sustained commitment to Radical Change. Do we wish for “good strategists”? Why not! But the heart of the matter goes far beyond any plan, no matter how brilliant. The heart of the matter is Heart & Will ... a record of upsetting apple carts, dislodging “establishments,” and fundamentally altering deep-rooted “cultures” to embrace change of the most primal sort. I titled my most recent book Re-imagine! Business Excellence in a Disruptive Age. “Excellence” in a “disruptive age” is not excellence amidst placid waters. The notion of excellence itself changes ... dramatically. We need our public and private Churchills, leaders who can re-imagine, who can call forth wellsprings of daring and guts and spirit and spunk, from one and all, to topple the way things may have been for many generations—and who inspire us to venture forth into today’s and tomorrow’s whitewaters with insouciance and bravado and determination.

At the heart of Boyd’s thinking is an idea labeled “OODA Loops.” OODA stands for the Observe-Orient-Decide-Act cycle. In short, the player with the quickest OODA Loops disorients the enemy to an extreme degree. In the world of aerial combat, for example, the confused adversary subjected to an opponent with short OODA cycles often flies into the ground rather than becoming the victim of machine gun fire or a missile. Boyd is careful to distinguish between raw speed and maneuverability. In aerial dogfighting in Korea (Boyd’s incubator), Soviet MiGs flown by Chinese pilots were faster and could climb higher, but our F-86 had “faster transients”—it could change direction more quickly; hence our technically inferior craft (by conventional design standards) achieved a 10:1 kill ratio.

Doug Hall, P&G vet and long-time proprietor of Eureka Ranch, is my favorite marketing guru. One reason is his ... Declaration of Dramatic Difference. Well, he doesn’t call it that—I do. In Jump Start Your Business Brain, Hall gives us his Three Laws of Marketing Physics. The Law of Dramatic Difference is number three. It goes this way. Prospective customers evaluate a new product. Then they’re asked (1) if they’d buy it and (2) if they see it as “unique.” The firm’s execs in turn evaluate and weigh the prospective customers’ reactions. Without fail, the execs deciding to launch or not bet close to one-hundred of their marbles on the intent-to-buy question, and virtually ignore the uniqueness issue. The problem, or should I say “THE PROBLEM”: In actual fact the intent-to-buy response is a poor predictor of subsequent real-world success (or failure), while the “uniqueness” assessment almost perfectly predicts the true response to the product.

I was described in public as a “radical” by a senior Japanese official, during a Summer 2004 conference in Nagano. (Actually, which I guess even amplifies the label, he was a Japanese-American, who spent much of his career in Silicon Valley.) I retorted sharply that I was no such animal! Alas, he’d been taking detailed notes during my presentation. “But didn’t you say you could readily imagine a $50 billion corporation, perhaps in pharmaceuticals, which had only two full-time employees—you and one other. And ‘outsourced’ everything else?” Then he added that “one of the two would, of course, be a woman.”

Embracing the “Dream Society”: Even “culture change,” daunting as it is, is not a fully adequate term. Requisite is a particular type of culture change that flies in the face of most traditional training and development practices of, say, the last hundred or more years. “Most managers,” says Danish marketing guru Jesper Kunde in Unique Now ... or Never, “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.” What about a new degree, an MMM (Master of Metaphysical Management) to supplant the MBA?

The Boomer-Geezer Opportunity

1. The numbers of people involved are ... enormous.2. The wealth of these people is ... staggering. (The 50+ group in the U.S. controls 70 percent, or $7 trillion, of our wealth.)3. This is the first “aging” group that ... refuses to “act their age”—a very cool thing for goods and services producers. (“Sixty Is the New Thirty”—AARP magazine cover in 2003.)4. The Boomer-Geezer cohort mostly wants to buy ... experiences. 5. One more time: VERY FEW FIRMS ARE AGRESSIVELY ADDRESSING THIS ISSUE-OPPORTUNITY. (“Addressing” = Realigning “culture” to Embrace the Boomers-Geezers.)

A researcher at Nomura Securities’ Nomura Research Institute said we’ve been through the Age of Agriculture and the Industrial Age. We’re in the Age of Information Intensification, but on the horizon is the next (last?) stage: the Age of Creation Intensification. I’d agree. And ... the point ... an Age of Creation Intensification is as far away as one can imagine from “Show up. Shut up. Or starve.” In an Age of Creation Intensification the boss’s mantra (is he a boss?) is more like: “Help! Please help! Please commit your heart and soul and imagination to inventing clever and wonderful services-solutions-experiences-dreams come true. Join with me in inventing an Adventure, a Quest worth your time and my time and our clients’ time and money.” (“Boss-as-beggar-supplicant-before-the-alter-of-Talent” rather than “boss-as-drill-sergeant” comes to mind as an appropriate image.) Do I paint an unrealistic picture? In a word ... no! Technology and globalization in all of their manifestations put organizational models and career models and leadership models up for grabs. (Media guru Marshall McLuhan once said, “If it works, it’s obsolete.” Soooo true of organizational arrangements, circa 2004.) The current winners—UPS, IBM, and Omnicom in business “services,” for instance—are forging completely new paths to an unknown and unknowable future. They will only progress if there is True Partnership among all parties to the enterprise—workers (Talent!!), Best Sourcing alliances, Cool & Pushy Clients, and the remaining minimalist superstructure. And such a True Partnership demands as a price of entry (a minimal reason for Seriously Cool Talent to “sign up”): Unstinting Integrity, Total Transparency, Passion-on-our-sleeves, and Spirit to burn (Steve Jobs: “Let’s make a dent in the universe”). Once more, I remind: I’m not suggesting the above because I think it’s “cool” or “right” or “good.” I’m “suggesting” (demanding!) such an approach because there’s not much likelihood that you can do otherwise and survive in a truly global, technology-rich, ambiguity-laden “age of creation intensification.”

HOW SWEET IT IS!

Cubicle slavery is on its last legs.Commodity strategies are by and large bankrupt.

Passion and commitment matter most.Creativity wins.

The individual reigns.We’re on our own.

(Ben Franklin would chuckle with delight!)

(Henry Ford would be horrified!)

Do you understand business mantra #1 of

the ’00s: DON’T TRY TO COMPETE WITH

WAL*MART ON PRICE OR CHINA ON COST?

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

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98

Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

You = Your Calendar (Period.)

Distinct …

or … Extinct

Schools Circa 2010 …

(1) Creativity(2) Arts orientation

(3) Independence of spirit and action (a Brand You-

entrepreneurial combo)

Why Do I love Freaks?

(1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of us—and our organizations—are in ruts. Make that chasms.)

Places where passion is the centerpiece of the “culture”

(restaurants, finance departments, platoons, movie crews) perform a helluva lot better than places that are

“professional”—that is, calm & cool & collected.

“She made us close our eyes and hear the singers she was passionate about: Roberta

Flack and Aretha Franklin. ‘Listen to the joy in their voices,’ urged Diane. ‘It’s not the words

or the music. They sing with such great passion, such heart and soul. You can feel

how the singers love what they’re doing. It’s not just a job to them. If you want to excel, you need to be passionate! Otherwise, why waste

your time?’” —fromer player, on Coach Diane Geppi-Aikens

Boomers & Geezers

1. The numbers of people involved are ... enormous.2. The wealth of these people is ... staggering. (The 50+ group in the U.S. controls 70 percent, or $7 trillion, of our wealth.)3. This is the first “aging” group that ... refuses to “act their age”—a very cool thing for goods and services producers. (“Sixty Is the New Thirty”—AARP magazine cover in 2003.)4. The Boomer-Geezer cohort mostly wants to buy ... experiences. 5. One more time: VERY FEW FIRMS ARE AGRESSIVELY ADDRESSING THIS ISSUE-OPPORTUNITY. (“Addressing” = Re-aligning “culture” to Embrace the Boomers-Geezers.)

Big/Mostly Missed Market OPPORTUNITIES1. Women buy everything. (Everything = A really, really lot.)2. Boomers & Geezers have all the money. (Trillions upon more trillions.)3. The Hispanic market is growing soooooo fast and is influencing styles soooooo fundamentally, it’d make your head swim … if you were paying the slightest bit of attention. (Hispanic-origin population in the U.S. grew by 39 percent from 1990 to 2000—while the population as a whole increased by 9 percent.)4. “Outside the beltway” concerns with All Things Green are growing exponentially. Green products. Green buildings. Environmental sensibilities and stewardship as a primary measure of enterprise citizenship.5. Medicine, the practice thereof, many miracle cures and the stupendous promise of biotech not withstanding, is broken. Dealing with problems before they arise is becoming “the new cool”— at least it is if you’re a patient. Hence: Wellness (products & services) is a burgeoning market. No, make that “stupendous.”6. DAMN FEW ARE PAYING ATTENTION TO ANY OF THE ABOVE—OR AT LEAST NO MORE THAN LIP SERVICE.7. To “take advantage” requires far, far more than “initiatives”—it demands fundamental strategic & cultural enterprise re-alignment. (E.g.: If you want to glom on to the “women’s market opportunity,” more or less put lots & lots of women in charge—see above.)8. So … use the new micro-segmentation tools to your heart’s desire—but don’t forget the basics.9. REPEAT AFTER ME: WOMEN BUY EVERYTHING!10. REPEAT AFTER ME: BOOMERS AND GEEZERS HAVE ALL THE MONEY!11. REPEAT AFTER ME: THERE ARE A LOT MORE HISPANICS AROUND THAN THERE WERE YESTERDAY.12. REPEAT AFTER ME: DO I HATE MONEY? AM I ASHAMED OF PROFIT? AM I AN ENEMY OF CAPITALISM? IF “NO” TO THESE QUESTIONS, THEN WHY AM I SO STUPID?

Women & Leadership

1. The world is changing. (Duh.)2. New sorts of leadership-managerial skills are needed to deal with a New World. (Duh.)3. Men and women are different. (Duh.)4. Very different. (It’s a fact.)5. The leadership skills that women tend to bring to the party are an excellent match with the new needs of enterprise. (Cool.) 6. Enterprise rules & mores are designed by men, for men. (Not surprisingly, men play well with toys they designed.) 7. Women are still woefully underrepresented in leadership ranks—e.g. 8 of the Fortune500 chiefs are women. 8. While I don’t seek a formal measure of numeric equality, I do scream: WE ARE MISSING ONE HELLUVAN OPPORTUNITY HERE! (Duh.)

Healthcare’s 1-2 Punch

1. Hospital “quality control,” at least in the U.S.A., is a bad, bad joke. Depending on whose stats you believe, hospitals kill 100,000 or so of us a year—and wound many times that number. Finally, “they” are “getting around to” dealing with the issue. Well, thanks. And what is it we’ve been buying for our Trillion or so bucks a year? The fix is eminently do-able … which makes the condition even more intolerable. (“Disgrace” is far too kind a label for the “condition.” Who’s to blame? Just about everybody, starting with the docs who consider oversight from anyone other than fellow clan members to be unacceptable.)

2. The “system”—training, docs, insurance incentives, “culture,” “patients” themselves—is hopelessly-mindlessly-insanely (as I see it) skewed toward fixing things (e.g. Me) that are broken—not preventing the problem in the first place and providing the Maintenance Tools necessary for a healthy lifestyle. Sure, bio-medicine will soon allow us to understand and deal with individual genetic pre-dispositions. (And hooray!) But take it from this 61-year old, decades of physical and psychological self-abuse can literally be reversed in relatively short order by an encompassing approach to life that can only be described as a “Passion for Wellness (and Well-being).” Patients—like me—are catching on in record numbers; but “the system” is highly resistant. (Again, the doctors are among the biggest sinners—no surprise, following years of acculturation as the “man-with-the-white-coat-will-now-miraculously-dispense-fix it-pills-for-you-the-unwashed.” (Come to think of it, maybe I’ll start wearing a White Coat to my doctor’s office—after all, I am the Professional-in-Charge when it comes to my Body & Soul. Right?)

Hunch!?I have a sense that there’s an interesting nexus among several of the ideas

I’ve just discussed … namely Women-Boomers-Wellness-Intangibles. Each one shoves the Fundamental Economic Value

Proposition toward the “softer side”: From facts- & figures-obsessed males to relationship-oriented Women. From goods-driven youth to “experiences”-craving Boomers. From quick-fix & pill-popping “healthcare” to a holistically inclined “Wellness Revolution.” From “goods” and “services” to Design- &

Creativity-rich Intangibles-Experiences-Dream Fulfillment. This so-called “softer side”—as IBM’s Palmisano and Harley’s Teerlink teach us—is now & increasingly “where the loot is,” damn near all the loot. That is, the “softer side” has become the Prime Driver of tomorrow’s “hard” economic value.

Each of the Four Key Ideas (Women-Boomers-Wellness-Intangibles) feeds off and complements the other three. Dare I use the word “synergy”? Perhaps.

(Or: Of course!) I can imagine an enterprise defining its raison d’etre in terms of these Four Complementary Key Ideas. (HINT: DAMN FEW DO TODAY.)

“Reward excellent failures … punish mediocre successes”: (1) World gyrating madly. (2) “Stop the world, I want to get off”—NOT AN OPTION. (3) Better get going. (4) Better try something as Bold & Brave &

Daring as the Bold Times cry out for—if survival is your/my game. (5) When you try Bold & Brave & Daring Stuff—bruises aplenty are your almost guaranteed lot. (6) But expending Precious Time (What else is there?) on timid excursions (“mediocre successes”—at best!) is a Certain Recipe for Economic Marginalization.

(7) So … GO FOR IT! (8) And … cherish those “excellent failures” that are increasingly sure to be your lot as you claw toward survival and “new excellence” in

these wondrous-madcap-maddening times.

Nexus/Confluence

Self-serviceOwnership Society

Brand You1t1

“The transfer of power from West to East is gathering pace

and soon will dramatically change the context for dealing with international challenges—

as well as the challenges themselves.” —James Hoge, editor, Foreign

Affairs, “A Global Power Shift in the Making: Is the United States Ready?”

“AT&T Said to Be Takeover Target” —headline,

Newsweek, 07.26.04, on KKR’s possible bid

HealthGrades/Denver: 195,000 hospital deaths per year in the U.S., 2000-2002 = 390 full jumbos/747s in the drink per

year. Comments: “This should give you pause when you go to the

hospital.”—Dr. Kenneth Kizer, National Quality Forum. “There is little

evidence that patient safety has improved in the last five years.”—Dr.

Samantha CollierSource: Boston Globe/07.27.04

“Some grocery stores have better technology than our hospitals and

clinics.” —Tommy Thompson, HHS Secretary

Source: Special Report on technology in healthcare, U.S. News & World Report (07.04)

“For today’s emancipated,

educated, high-expectation women,

the mid-forties to mid-fifties is the Age of

Mastery.” —Gail Sheehy (in More)

“All you need to know about mental health can be summed up in only two words …

DON’T BELITTLE.”

—Norm Guitry

Direct Selling’s Potent Promise

-- “This industry is global and is growing exponentially.”—Roger Barnett, investment banker

specializing in direct selling

-- DSA: 175,000 Americans sign up per week (475,000 world wide)

-- All industries (wellness, telecomms, financial services … Crayola’s Big Yellow Box)

-- Global: Avon, 70%; Tupperware, 75%; China & India huge

-- MLM’s share of direct selling: 56% in 1990 to 82% in 2003

TP’s July “Journey to Direct”

-- infoUSA Client Conference/DBM-- Chairman/DNC-- Wired on Arnold/Howard/moveon.org-- BzzAgent.com and TPC--Guerilla PR Wired: Waging a Successful Publicity Campaign Online, Offline, and Everywhere in Between/Michael Levine (TP starts blogging)-- My Dinner With … party planning consultants-- 15,000 WFGers

Sakie Fukushima, MD/Japan/KornFerry

and … first woman Director … Sony!

“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders,

and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not

enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all

this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their

circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed

forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and

how value will be created in the future.”

—Narayana Murthy, chairman’s letter, Infosys Annual Report 2003

“BABY-BOOMER, COME HOME: Gap Hopes a New

Chain Will Bring Back Women Who Once Bought Its Jeans”

—headline/BusinessWeek/0704

Now You’ve Heard It All …

“We want our branches to be a place where people come as a

destination.” —Amy Brady, on the BofA

effort to learn from Starbucks and Gap (“The Fun Factor”/The Boston Globe/08.30.04

The Old 1-2 Punch …

“[Typical sales training courses] teach you to ‘deal with’ ‘objections’ and such. They ought to teach you how to keep your lips zipped and listen. You know, Tom, the old one about why ‘God gave us one mouth and two ears.’ I’ve been in this business

for twenty-five years, and I guarantee you ‘great sales skills’ are ninety-nine percent about respect and empathy and listening.”

—Sales Exec, F, conversation on a plane trip

Did We Say “Talent Matters”?

“The top software developers are more productive than

average software developers not by a factor of 10X or 100X, or

even 1,000X,

but 10,000X.” —Nathan Myhrvold,

former Chief Scientist, Microsoft

Growth Projections: 2003-2010

Narrowcast media … 13.5%Mass media … 3.5%

Source: Sanford C. Bernstein & Co

Mass

Narrowcast

1t1: DBM/CRM1t1: Web

1t1:Direct Mail1t1: Telemarketing

1t1: Door-to-door Reps1t1:MLM

440 new consumer mags in 2003/10% of 6,200 total mags are general

interest, down from 30% in 1980 —Samir Husni/U. Miss/BW0704

“It’s not size that counts most, but the ability to deliver someone elusive to

advertisers.” —Mary Berner/CEO/Fairchild Publications/2003: W Jewelry to 75,000 of W’s 469,000

subscribers who spend >$60,000 a year on jewelry

“Money that used to go for 30-second network spots now pays for closed-circuit sports programming piped into Hispanic bars and for ads in Upscale, a custom-

published magazine distributed to black barbershops. … ‘We are a big marketer—

we are not a mass marketer,’ says Lawrence Light, McDonald’s chief

marketing officer.” —BW/0704

“Monolithic blocks of eyeballs are gone. In their place is a

perpetually shifting mosaic of audience micro-segments that

forces marketers to play an endless game of hide-and-seek.” —Eric Schmitt/Forrester Research/

BW(0704)

“If you go back 40 years, people wanted to be identified as normal. So they wanted the most popular car and

the most popular color. From the consumer point of view, we’ve had a

change from ‘I want to be normal’ to ‘I want to be special’.” —Lawrence Light, Global

Chief Marketing Officer, McDonald’s (BW/07.04)

“If we look over just the last half-dozen years, our media mix has shifted in the U.S. from two-thirds on prime-time network TV to two-thirds not on prime-time

network.” —Lawrence Light, Global Chief Marketing Officer, McDonald’s (BW/07.04)

“The old days of advertising vs. promotion vs. merchandising vs. display vs. events—that’s a mindset that has to disappear. It’s all promotion. The purpose is to elevate the brand perception in the customer’s

mind. A T-shirt is a medium, a package is a print ad, it’s not just a container; we think

about a store design as outdoor advertising.” —Lawrence Light, Global Chief Marketing

Officer, McDonald’s (BW/07.04)

Q/BW : Do you think the mass market is a thing of the past?

A/Lawrence Light, McD’s Global CMO: The answer is yes. … What has changed is technology has facilitated our ability to reach people on a more customized, more personalized basis. That’s a revolution.

Old New

Consumers Couch potatoes, passively Empowered media users control receive whatever the and shape the content, thanks networks broadcast to TiVo, iPod and the Internet Aspirations To keep up with the crowd To stand out from the crowd TV Choice Three networks plus a Hundreds of channels, plus PBS station, maybe video on demand

Magazines Age of the big glossies: Age of the special interest: Time, Life, Look and A magazine for every hobby Newsweek and affinity group

Ads Everyone hums the Talking to a group of one: Alka-Seltzer jingle Ads go ever narrower

Brands Rise of the big, ubiquitous Niche brands, product extensions brands, from Coca-Cola and mass customization mean to Tide lots of new variations

Source: BusinessWeek/07.12

??????????????

“Never sacrifice a friendship for a good column.”

v.

“Never sacrifice a good column for a friendship.”

“You get an educated workforce, remarkable infrastructure, a lot of

government support. These [Southeast Asian] governments have made life sciences a top priority—and

they have a great venture capital community there.” —Glenn Rice, VP Pharmaceutical

Discovery and Development, SRI International (On the rapid migration of drug discovery from the U.S. at a 20% to 40% cost saving Rice adds that 40%

to 60% of U.S. postdocs are from China and Taiwan) From: Stanford Business /August 2004

“Welch was to a large degree a growth by acquisition man. ‘In the late ’90s,’ Immelt says,

‘We became business traders, not business growers. Today organic growth is absolutely

the biggest task of everyone of our companies.

If we don’t hit our organic growth targets, people are not going to get

paid.’ … Immelt has staked GE’s future growth on the force that guided the company at it’s

birth and for much of its history: breathtaking, mind-blowing, world-rattling technological

innovation.” —“GE Sees the Light”/Business 2.0/July 2004

“I don’t believe in

economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/

Wells Fargo/Forbes08.2004 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

Total Enterprise Revision: “Not optional”

Total “Value proposition” revision: “Not optional”

“All-the-way” IS/IT solutions: “Not optional”

Full-scale globalization: “Not optional”

Work done where it best makes sense: “Not optional”

Re-imagine General Electric

“Welch was to a large degree a growth by acquisition man. ‘In the late ’90s,’ Immelt says, ‘we became

business traders, not business growers. Today organic growth is absolutely the biggest task of everyone of

our companies. If we don’t hit our organic growth

targets, people are not going to get paid.’ … Immelt has staked GE’s future growth on the force

that guided the company at it’s birth and for much of its history: breathtaking, mind-

blowing, world-rattling technological innovation.” —“GE Sees the Light”/Business 2.0/July 2004

America’s Rule #1: Don’t even think about

competing with Wal*Mart on price or

China on cost!

“I don’t believe in

economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/

Wells Fargo/Forbes08.2004 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

Market Share, Anyone?

240 industries: Market-share

leader is ROA leader 29% of

the time

Source: Donald V. Potter, Wall Street Journal

“Beware of the tyranny of making

Small Changes to Small Things. Rather, make Big Changes to Big

Things.” —Roger Enrico, former Chairman, PepsiCo

Not “out sourcing”Not “off shoring”

Not “near shoring”Not “in sourcing”

but …

“Best Sourcing”

Job One: Getting (WAY) beyond the

“Cost center,” “Overhead” mentality

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as

companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based

society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right

now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic

reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from

Information to Imagination Will Transform Your Business

46 Pages: Thomas Paine, Common Sense, and the Turning Point to Independence

Ideas matter!“Viral marketing” rules!

“End runs” are requisite!Keep it simple, stupid!

It takes a renegade!

“Researchers asked subjects to count the number of times ballplayers with white shirts pitched a ball back and forth in a video. Most subjects were so thoroughly

engaged in watching white shirts that they failed to notice a black gorilla that wandered across the scene and paused in the middle to beat his chest. They had their noses buried in their work that they didn’t even

see the gorilla.

“What gorillas are moving through your field of vision while you are so hard at work that you fail to see them?

Will some of these 800-pound gorillas ultimately

disrupt your game?” —Yoram Wind and Colin Crook, The Power of Impossible Thinking: If You Can Think Impossible

Thoughts, You Can Do Impossible Things

Searching for Antidotes: “What’s most important?” “Everything!”

FOCUS [2 things/120 days][2 = 90%]

CLARITY [10 words, max]

INTENSITY ENTHUSIASMHUMOR [a game]

OPTIMISM [If it kills you]

VISIBILITYREPITITION [3/day]

EXTREME [1/week]

“Some people look for things that went wrong

and try to fix them. I look for things that

went right, and try to build off them.” —Bob Stone

(Mr REGO)

The Case for IPMs (Itinerant Potential Machines)

“It is almost impossible to take action to prevent something that hasn’t

occurred previously” —Judge Richard Posner, “The 9/11 Report: A Dissent”/New York

Times

Only One Big Issue …

“People think the president has to be the main organizer. No, the president is the

main dis-organizer. Everybody ‘manages’ quite well; whenever anything goes wrong,

they take immediate action to make sure nothing’ll go wrong again. The problem is,

nothing new will ever happen, either.”* —Harry Quadracci, Quad/Graphics

*Beware ICD/Inexorable Centralist Drift—TP

Everything You Need to Know about “Strategy”

1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue Audacious Quests?2. Is your Talent Pool loaded with wonderfully peculiar people who others wouldcall “problems”? And what about your Extended Community of customers, vendors et al?3. Is your Board of Directors as cool as your product offerings … and does it have50 percent (or at least one-third) Women Members?4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation … not Imitation!5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co-authors of In Search of Excellence? Are your O.O.D.A. loops shorter than the next guy’s? 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto or de jure motto?7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”?8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to associate with the ‘best of the best’.” 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal?10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an “awesome experience” that does nothing less than transform the way she or he sees the world?11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires fundamental re-alignment of the enterprise?12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto?13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETEWITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)

Ten Good Reasons to “Get Up in the Morning”

1. Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) Foster the “Brand You Spirit” and the “Entrepreneurial Urge” at every turn. (Or else.) 2. Blow up “education” as we know it today! Re-tool education to emphasize the arts, creativity, entrepreneurial behavior. (Or else.)3. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst.4. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet! Make Passion your Passion! (Hint: Passion makes the world go ‘round.)5. Be a champion for: Women Roar! Women Rule!6. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: Women, Boomers and Geezers, Hispanics, Greenies, Wellness.7. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-Wellness. (And “kindly suggest” that the “acute-care” “industry” give some passing thought to Quality.)8. Ensure that the historically neglected “intangibles” are the prime basis for individual and enterprise success.9. Support Globalization as the best—if indeed messy—path to maximum human freedom, security and welfare.10. Swear by the motto: “Reward excellent failures; punish mediocre successes.”

07.19.04

Colorado Springs: McDonald’s call center for Drive-

through (incl. electronic photo of customer)

Source: NYT/07.18.04

MinuteClinic: “Next to the Express Checkout,

Express Medical Care”

Source: Headline/NYT/07.18.04 (on MinuteClinic at Targets and Cub Foods stores in Minneapolis

Business 2.0 outsources section

of August 2004 issue!


07.18.04

New York-Presbyterian: 7-year, $500M consulting

(generic) and equipment contract with GE Medical

Systems


07.16.04

Kodak …. FujiGM …. FordFord …. GM

IBM …. Siemens, FujitsuSears … Kmart

Xerox …. Kodak, IBM

Whoops: “Great speech, Tom, but you missed the most important

point.”

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager

for Corporate America” —Headline/BW/07.19.2004

07.14.04

Two Weeks in July 2004: Not Your Father’s

World!

“China’s size does not merely enable low-cost manufacturing; it forces it. Increasingly, it is what

Chinese businesses and consumers choose for themselves that determines how the American

economy operates.” —Ted Fishman/“The Chinese Century”/

The New York Times Magazine /07.04.04

“One Monday this spring, a forty-three-year-old salesclerk at the Home Depot in Plano, Texas,

scribbled some updates onto an old resume and took it to his local copy shop. To his education

and work history—a bachelor’s degree in industrial engineering and technology, service in

the U.S. Marine Corps—he added a recent moonlighting job as a handyman and a new

‘career objective.’ Ten minutes later, in southern India, a middle-age Hindu man in a cavernous

workplace began to type the Home Depot clerk’s words.” —The New Yorker /07.05.2004

“The Ultimate Luxury Item Is Now

Made in China” —Headline/p1/The New York Times/

07.13.2004/Topic: Luxury Yachts made in Zhongshan

“Vaunted German Engineers Face

Competition From China” —Headline, p1/WSJ/07.15.2004

“JET BLUE has a secret weapon: a virtual

reservations center. … Jet Blue’s 600 agents all work

from home. …”

Source: Ad for Avaya/BW/07.19.2004

07.12.04

Re-imagine!*1.Empower one and all to vigorously seek WOW! in their work/projects. (Or else.)2. Encourage the entrepreneurial (Brand You) spirit in people of all ages; lead the parade of those aiming to “Free the Cubicle Slaves.”3. Urge education “bureaucrats” (From kindergarten to MBA schools) to emphasize the arts, creativity, entrepreneurial behavior.4. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst.5. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet.6. Be a champion for: Women Roar! Women Rule!7. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: women, boomers and geezers, Hispanics, greenies, wellness.8. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-wellness.9. Nurture the “lesser” “intangibles”—such as design/experiences and innovation—as the prime basis for individual and enterprise success.10. Support Globalization as the best/only—if indeed messy—path to maximum human freedom, security and welfare.11. Fight bureaucratic rigidities, centralization and mindless gigantism to the death.12. Swear by the motto: “Reward excellent failures; punish mediocre successes.”13. Foster a “sense of grace and care” in enterprises and organization-client transactions of all flavors.

*Why I get out of bed in the morning/TP/07.12.2004

All You Need to Know About “Strategy”

1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue audacious Quests?2. Is your Talent Pool loaded with wonderfully peculiar people who others wouldcall “problems”?3. Is your Board of Directors as cool as your product offerings … and does it have50% (or at least one-third) Women Members?4. Are Innovation and Entrepreneurship your primary aims?5. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)?6. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”?7. Do you embrace the new technologies with child-like enthusiasm/revolutionary zeal?8. Do you “serve” customers … or go berserk attempting to provide every customer with an “awesome experience” that automatically turns her/him into a “raving fan”?9. Are your leaders accessible? Do they wear their passion on their sleeves? Is yours a “hot place to hang out” and “learn cool stuff”?10. Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto?11. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 10 above!)

Take no shit.Kick ass.Mean it.Don’t ever, ever surrender.And, for God’s sake, be vital.

Source: Jayson Gallaway, Diary of a Viagra Fiend

“Never mind your happiness; do your

duty.” —Peter Drucker

(BrainyQuote.com)

07.05.04

The Work Matters!

“What we do matters to us. Work may not be the most

important thing in our lives or the only thing. We may work because we must, but we still

want to love, to feel pride in, to respect ourselves for what we

do and to make a difference.” —Sara Ann Friedman, Work Matters: Women Talk About Their

Jobs and Their Lives

07.01.04

“How Would You Play Today If You Knew You Could Not Play

Tomorrow”Source: Slogan for Loyola’s lacrosse season, from coach

Diane Geppi-Aikens (Lucky Every Day: The Wisdom of Diane Geppi-Aikens, by Chip Silverman)

“She made us close our eyes and hear the singers she was passionate about: Roberta

Flack and Aretha Franklin. ‘Listen to the joy in their voices,’ urged Diane. ‘It’s not the words or the music. They sing with such great passion,

such heart and soul. You can feel how the singers love what they’re doing. It’s not just a

job to them. If you want to excel, you need to be passionate! Otherwise, why waste your time?’ ”

Source: Lucky Every Day: The Wisdom of Diane Geppi-Aikens, by Chip Silverman)

Must Reads!

EVEolution: The Eight Truths of Marketing to Women, Faith Popcorn

and Lys Marigold

Marketing to Women, Martha Barletta

Don’t Think Pink: What Really Makes Women Buy, Lisa Johnson and

Andrea Learned

06.30.04

Johannes Kepler: Quiet … humble … stoic??*

*Joshua Gilder & Anne-Lee Gilder, Heavenly Intrigue: Johannes Kepler, Tycho Brahe, and the Murder Behind One of History’s Greatest Scientific Discoveries

“Men and women have different styles of fearing. Men’s fears focus around

what we experience as our independence, and women’s around

loss of significant relationships. We fear engulfment, anything that

threatens to rob us of our power and control. Women most fear

abandonment, isolation, loss of love.” —Sam Keen, Fire in the Belly (see also Susan Rice)

Harvey Mackay’s Meeting Ender: “What are the five

things that could go wrong, and what would we do

about each one?”

“Secrets” of Marketing to Women

1. Show her “real” women and reliable scenarios.2. Focus on connection and teamwork.3. Capture her imagination by using stories.4. Make it multisensory.5. Add the little extras.6. Tap the emotional power of music.7. Create customer evangelists.8. Form brand alliances.

Source: Lisa Johnson & Andrea Learned, Don’t Think Pink:

What Really Makes Women Buy and How to Increase Your Share of This Crucial Market

“To Hell With Well Behaved … Recently a young

mother asked for advice. What, she wanted to know, was she to do with a 7-year-old who was obstreperous, outspoken, and

inconveniently willful? ‘Keep her,’ I replied. … The suffragettes refused to be polite

in demanding what they wanted or grateful for getting what they deserved.

Works for me.” —Anna Quindlen/Newsweek

06.25.04

“When I was growing up, my parents used to say to me: ‘Finish your dinner—people in China are

starving.’ I, by contrast, find myself wanting to say to my daughters:

‘Finish your homework—people in China and India are starving for your job.’ ” —Thomas Friedman/06.24.2004

“I often noticed that while the admirals around the table vigorously shook their heads in

disagreement, the younger officers lining the back walls nodded their heads in assent. This was a huge lesson for me: If one was going to

change things, one needed to focus on the mid-level officers. Because in just a few short years, they would be running the Navy, and

they realized, intuitively, that the future threat

environment [had changed radically].” —Thomas Barnett, The Pentagon’s New Map

06.17.04

60 – 30 = 90 – 60*

*90 – 60 > 60 – 30 (??)

“[Sam] Palmisano’s strategy is to expand tech’s borders by pushing

users—and entire industries—toward radically different business models.

The payoff for IBM would be access to an ocean of revenue—Palmisano

estimates it at $500 billion a year—that technology companies have never been able to touch.” —Fortune/06.14.04

“Palmisano is pushing IBM’s ability to assemble SWAT

teams of hardware, software services, research and sales

people to cure customers’ headaches.” —Fortune/06.14.04

No Limits?

“Short on Priests, U.S. Catholics Outsource Prayer

to Indian Clergy” —New York

Times/06.13.04 (“Special intentions,” $.90 for Indians, $5.00 for Americans)

One Person, Not So Senior!

LCDR Charles Swift, Guantanamo Bay defense

attorney

SPC Joe Darby

Shanghai. 17 million people. $10,000 p.c. (10X

China). 2000-2003: 30% p.a. growth.

Source: Washington Post/6.130.04

Disagree: “Success in life is pretty much determined by forces out side our control”

Bangladesh … 9%China … 22%

Germany … 31%Mexico … 38%France … 42%

UK … 43%Japan … 52%

Canada … 62%U.S.A. … 64%*

*81% college kids predict they’ll be richer than their parentsSource: Pew Center

Productivity!

McKesson 2002-2003: Revenue … +$7B

Employees … +500


Girls education #1: Yields highest return on investment in developing

world*

*better nutrition for family. Better kids’ education. Better health. Higher family

income. Lower birth rate. Etc.

Source: Larry Summers, as reported in “The Payoff From Women’s Rights,” Isobel Coleman, Foreign Affairs/May-June

2004

06.12A.04

“Ronald Reagan does not enter history tentatively—he does so with certainty and panache. At home and on the world stage, his were not the pallid etchings of a timorous politician. They were the bold strokes of a

confident and accomplished leader.”—Brian Mulroney

Mulroney on great leaders/RR: “ … magical quality that sets some men and women apart so that millions

will follow them as they conjure up grand visions and invite their countrymen to dream big and

exciting dreams”

Source: RR eulogies at National Cathedral 06.11.2004

06.12.04

“I’m not sure about his politics, but that’s not

what made him great. He inspired people. He made

us all feel better about ourselves.” —bystander, California, during RR

funeral

Chinese Industrial Growth Rate Slows!

April ’03 to April ’04: 19.1%

May ’03 to May ’04: 17.5%


06.09.04

New Product Timing: Only Three Options

Too early

Too late

Lucky

Therefore …

Leadership = Art

Therefore …

MBA = Useless

“Some 350,00 people turn 50 each month in the United

States, providing an enormous and growing pool of potential buyers [of giant RVs] for at least the next decade.” —

Craig Kennison, industry analyst/Chicago Tribune/06.07.2004

“bold and challenging optimism,” “America as a permanently revolutionary force”—David

Brooks/NYT

“Reagan’s heroes were rugged individualists, defined by the fact that they do not know their

place”—John Micklethwait & Adrian Wooldridge/WSJ

“We have it in our own power to begin all over again”—a Reagan favorite, from Tom Paine

Optimists: TR, FDR, Reagan

06.08A.04

The One-page Proposal: How to Get Your Business Pitch onto One Persuasive Page —Patrick Riley (“Why not one and a half? Why not two? Sorry, it’s one or nothing. Once the proposal extends past the first page,

the battle is lost.”)

Biases

Importance of Success Factors by Various “Gurus”/Estimates by Tom Peters

Strategy Systems Passion Execution Porter 50% 20 15 15

Drucker 35% 30 15 20

Bennis 25% 20 30 25

Peters 15% 20 35 30

Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective

1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of the power of a Good Story (Brand Power).

Kevin Roberts’ Credo

1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.10. Avoid moderation!

Sir Richard’s Rules:

Follow your passions.Keep it simple.

Get the best people to help you.Re-create yourself.

Play.

Source: Fortune/10.03

CONTEXT

The Passion Imperative:

The Leadership50

“Uncertainty is the only thing to be sure of.” —Anthony Muh,

head of investment in Asia, Citigroup Asset Management

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief of Staff,

U. S. Army

Mount Madness v.2004

Perfect Storm

X

Corporate Mal-adaptivity

The Perfect StormJobs

TechnologyGlobalization

War, Warfighting & Security

“14 MILLION service jobs are in

danger of being shipped overseas” —

The Dobbs Report/USN&WR/11.03/re new UCB

study

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

“The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been

integrated into the global market economy, many of them highly educated workers, who can

do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004

“This is a dangerous world and it is going to become more dangerous.”

“We may not be interested in chaos but

chaos is interested in us.”

Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century


Perfect Storm

X


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


Perfect Storm

X


06.08.04

TP Query One: Does it bleed

when cut?

Strategy Systems Passion Execution Porter 50 20 15 15

Drucker 35 30 15 20

Bennis 25 20 30 25

Peters 15 20 35 30

Purpose/Conclusions

1. Insane times/No rules.2. Adaptability wins.3. Dramatic new value-added equation.4. IS/IT excellence dependent on a bold vision and a willingness to challenge everything “we know for sure.”5. Best roster wins!6. Insane times call for insane leaders with insane commitment.

06.06.04

Plante & Moran (#11)

Highest % women partners (19%)

Highest % partners on non-traditional work schedules (14%)

Parenting “Buddies”; 4 weeks off, 5 after 5 years; paid 4-week sabbatical for partners

every 7 years; up to 6 months unpaid parental leave (M & F)

Exceptional growth/profitability vs. Top 100

Source: Fast Company/05.04

Median Household Net Worth

<35: $7K35-44: $44K45-54: $83K

55-64: $112K65-69: $114K70-74: $120K>74: $100K

Source: U.S. Census

50+

78M67% of wealth ($28T)

Source: U.S. Census/Federal Reserve/WSJ

Net Worth Household Heads

55-64

= 15X <35

Source: U.S. Census/WSJ

Starting to Reach Out:

Sony, Ford, Walt Disney, Target, Anheuser-Busch,

P & G

Source: WSJ

06.05.04

Sysco!

06.03.04

“Mergers and acquisitions get the headlines, but studies show they often end up destroying shareholder

value instead of creating it. That’s one reason why organic growth is so prized by corporations and

investors. In fact, if you compare the stock performance of a new index of 23 companies that are masters of organic growth to the S&P500, the Organic Growth

Index beat the S&P500 handily, 31% vs. 22% over the year ending January 2004. And looking further back at a

five-year period ending in 2002, the OGI walloped the S&P500, 25% vs. 3%.” —Fortune.com/06.03.2004 (The OGI includes

Wal*Mart, Sysco, Harley-Davidson, Bed, Bath & Beyond, NVR)

“How do dominant companies lose there

position? Two-thirds of the time, they pick the wrong competitor to

worry about.” —Don Listwin, CEO,

Openwave Systems/WSJ/06.01.2004 (commenting on Nokia)

“A Bedtime Story, for $20,000”/CNN

Int’l Sleep Products Assn: 20% of mattresses sold in 2003 >$1,000 vs. 15% in 2000. Fastest growing segment: $5,000 to

$20,000.

ISPA exec: “The Baby Boomers are getting older, and more affluent. As you get older, your body changes and those aches and pains develop. So they have the money

and the inclination to upgrade.”

05.26.04

“Al-Qaida Said to have 18,000 Militants for

Raids”Source: AP/05.25.2004/from International Institute for

Strategic Studies annual survey of world affairs

“Terrorists Planning Summer Attack?” —AP

Headline/05.25.04

05.24.04

DIM/Self-service Rules!

ATMsCheckoutPhones

SpeedpassThe Web (eBay, Amazon,

Travelocity, Mapquest, banking et al.)HR, Project management, etc.

Minus 1.3M secretaries

05.23.04

“Clients want either the best or

the least expensive; there

is no in between.” —John Di Julius, Secret

Service

Steel: China

20X EU.

Source: Newsweek/05.2004

“Unless nimble and sophisticatede risk management systems are in place, the firm

will be unable to benefit from revenue growth.”

“There is a hell of a paradox. We try to model risk scenarios but end up instead

increasing the complexity of the business to the point where it is almost

unmanageable.”

Source: IBM Business Consulting Services/The Global CEO Study 2004

“We have no future because our present is too volatile.

We have only risk management. The spinning

of the given moment’s scenarios. Pattern

recognition.” —from William Gibson, Pattern Recognition

“What is it that distinguishes the thousands of years of history from what we think of as modern times?

The answer goes way beyond the progress of science, technology, capitalism and democracy. … The

revolutionary idea that defines the boundary between modern times and the past is the mastery of risk: the notion that the future is more than a whim of the gods

and that men and women are not passive before nature. [ Thinkers like Luca Paccioli, Jacob Bernoulli and Abraham de Moivre] converted risk-taking into

one of the prime catalysts that drives modern Western society … and converted the future from an enemy into an opportunity.”—Peter Bernstein, Against the

Gods: The Remarkable Story of Risk

“If you are not one of the major players, you have to take a position that is contrary to the global trend.”

“We have to ask ourselves: How can we be different? We have to find out what we can be best in the world at.”

Source: IBM Business Consulting Services/The Global CEO Study 2004

05.19.04

Siemens

Total (’94 to ’04), 376K to 415K; Germany, 218K to 167K

6X Prague (“Today it’s Hungary, tomorrow it’ll be Lithuania and Estonia”—IG Metall

rep)

“Assembly-line jobs are not the only ones at risk; software work is next.”

Source: BusinessWeek/05.2004

05.15.04

HTSH: Engage!

Commit! Engage! Try! Fail! Get up! Try again! Fail again! Try again! But never, ever stop

moving on! Progress for humanity is engendered by those who join and savor the

fray by giving one hundred percent of themselves to their dreams! Not by those timid souls who remain glued to the sidelines, stifled by tradition, and fearful of losing face or giving

offense to the reigning authorities.

Key words: Commit! Engage! Try! Fail! Persist!

HTSH: You Must Care

Make the time each day to offer an expression of appreciation to just one of your fellow human

beings. It is the accumulation of such “small” kindnesses and acts of recognition that add up to a life worth having been lived. In short … you

must care. You must wear your passion and compassion on your sleeve, and attend

assiduously to the moment. It will not come ‘round again.

Key word: Care

Chinese Offshore Tourists

’93: 3M’03: 21M

Ford Hybrid SUV Wallops Expectations

Women>$100K

College EdSource: USA Today/05.14.04

05.13.04

+People skills & emotional intelligence (financial service sales, 78%/248K; RNs, 28%/512K; lawyers, 24%/182K)

Imagination & creativity (architects, 44%/60K; designers, 43%/230K; photographers, 38%/50K)

Analytic reasoning (legal assts, 66%/159K; electronic engs, 28%/147K; computer operators, 55%/367K)


-Formulaic intelligence (health record clerks, 63%/36K;

secretaries & typists, 30%/1.3M; bookkeepers, 13%/247K)

Manual dexterity (sewing machine ops, 50%/347K; lathe ops, 49%/30K; butchers, 23%/67K)

Muscle power (timber cutters, 32%/25K; farm workers, 20%/182K)


“Over the last decade the biggest employment gains came in occupations that rely on people skills and emotional intelligence and among

jobs that require imagination and creativity. … Trying to preserve existing jobs will prove futile

—trade and technology will transform the economy whether we like it or not. Americans will be better off if they strive to move up the hierarchy of human talents. That’s where our

future lies.” —Michael Cox, Richard Alm and Nigel Holmes/“Where the Jobs Are”/NYT/05.13.2004

05.10.04

“He wasn’t one who went along with his peers” —SPC Joe Darby’s history

teacher

05.04.04

Montgomery Ward … K-Mart … Sears … Macy’s … Hutzler’s …

Wanamaker’s … DEC … Wang … Compaq … Chase Manhattan … American Motors … Chrysler …

U. S. Steel … Bethlehem Steel … AT&T … Soviet Union …

Wal*Mart … Dell … Microsoft … U.S.A. …

1997-2001

>$600: 10% to 18%$400-$600: 49% to 32%

<$400: 41% to 50%

Source: Trading Up, Michael Silverstein & Neil Fiske

05.03.04

“There is little evidence that mastery of the knowledge

acquired in business schools enhances people’s careers, or

that even attaining the MBA credential itself has much effect on graduates’ salaries or career attainment.” —Jeffrey Pfeffer (tenured professor,

Stanford GSB/2004)

“Internationally, the United States ranked sixtieth in

women’s political leadership, behind Sierra

Leone and tied with Andorra.” —Marie Wilson, Closing the Leadership Gap

>1/3rd in parliament: Sweden, Denmark, Norway, Finland, Iceland, the Netherlands, Germany

(USA: 15%,14%)

France: Constitutional amendment re women on ballot (L & R); 25% to 48% local gov’t

India: Constitutional amendment, 1/3rd village council seats (1.3M)

—Marie Wilson, Closing the Leadership Gap

“Former President Vigdis Finbogadottir likes to tell of

boys who asked their mothers during her long

term if men could be president of Iceland.” —Marie Wilson,

Closing the Leadership Gap

“Trustmarks come after brands; Lovemarks come after Trustmarks.

Think about how you make the most money. You make it when loyal users, heavy users, use your product all the

time. So having a long-term Love affair is better than having a trusting relationship —Kevin Roberts, Saatchi & Saatchi, The

Future Beyond Brands: Lovemarks

04.13.04

The Winning Edge: Peters’ Big6

1. Research-Innovation2. Entrepreneurial Attitude & Support (Especially from Capital Markets)

3. Creative (“Obstreperous”) Education4. Free Trade-Open Markets5. Individual Self-reliance (& Supports Therefore)

6. Cutting-edge Infrastructure

How Nations Become Wealthy

1. Property rights 2. Scientific rationalism 3. Capital markets 4. Fast and efficient communications and transportation

Source: The Birth of Plenty: How the Prosperity of the Modern World Was Created, William Bernstein

04.07.04

“It’s like a tsunami coming at you. You know

the tidal wave is going to hit, and it’s a question

of whether we’ll be ready.” —Ed Schneider, Professor of

Gerontology, USC

“It’s no longer enough to be a ‘change agent.’ You must

be a change insurgent—provoking, prodding,

warning everyone in sight that complacency is death.”

—Bob Reich

03.24.04

ALL YOU NEED TO KNOW ABOUT MARKETING …

“Just say no” … to micro-segmentation, teen “brand loyalty”

“Just say yes” to …Women

Professional womenWomen biz ownersBoomers/Geezers

Boomer women (!!!!!!)WellnessHispanicsGreenies

“Just say no” … to micro-segmentation, teen “brand

loyalty”

“Just say yes” to …

WomenProfessional womenWomen biz ownersBoomers/Geezers

Boomer women (!!!!!!)WellnessHispanicsGreenies

03.19.04

“The $58B hostile bid by Sanofi-Synthelabo for Aventis has been greeted skeptically, as has the news that Novartis may counterbid. Few

investors believe that Big Pharma can compensate for a deficit of new drugs by

getting bigger. Some suspect the converse is true: that size has made them sluggish. … That has led to some thinking the unthinkable: that pharmaceutical companies should leave drug

discovery to biotech companies and focus their efforts on development and marketing.”

—Financial Times/03.2004

03.16.04

“the wildest chimera of a moonstruck

mind” —The Federalist on

Jefferson’s Louisiana Purchase

03.15.04

‘We erect walls to foreign trade and even discourage job-displacing innovations. But time and again

through our history, we have discovered merely to preserve the

comfortable features of the present, rather than reaching for new levels of

prosperity, is a sure path to stagnation.” —Alan Greenspan/03.12.2004

“In my experience, all successful

commanders are prima donnas, and must be so

treated.” —George S. Patton

“When it comes to transformative technologies, overoptimistic investors are actually working for the common good—even if they don’t know it. We can be

glad that investors financed the construction of thousands of miles of track in the middle of the

nineteenth century, despite the fact that most of them dropped a bundle doing it. The same goes for over-

optimistic investors who poured money into semiconductors thirty years ago, financed undersea

fiber-optic cables in the late nineties, and now are poised to lose their shirts in the coming nanobubble. In

the dreams of avarice lie the seeds of progress.”—James Surowiecki/New Yorker/03.2004

03.12.04

The Perfect (Jobs) Storm

Off-shoringWC Automation

Reluctance to hire

“The Americans’ self-image that this tech thing was their private preserve is over. This is a wake-up call for U.S.

workers to redouble their efforts at education and research. If they do

that, it will spur a whole new cycle of innovation, and we’ll both win. If we each pull down our shutters, we will

both lose.” —Indian software exec to Tom Friedman (NYT/03.04)

03.04.04

3GSM World Congress/ Cannes/

Feb2004!

5% F500 have CIO on Board: “While some of the world’s most admired companies—

Tesco, Wal*Mart—are transforming the business landscape by including

technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and

shareholder value.”

Source: Burson-Marsteller

Changing communication patterns: American Express, marketing spending on TV,

80% to 35%, ’94-’04

Source: Advertising Age/02.04

“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04

“Forget India, Let’s Go to Bulgaria” —Headline,

BW/03.04, re SAP, BMW, Siemens et al. “near-shoring”

“Thaksinomics” (after Taksin Shinawatra, PM)/ “Bangkok

Fashion City”/ “managed asset reflation” (add to brand value of

Thai textiles by demonstrating flair and design excellence)

Source: The Straits Times/03.04.2004

“Is Your Job Going Abroad?” —Time/Cover/03.04

“Let’s compete—by training the best workers, investing in R & D,

erecting the best infrastructure and building an education system that graduates students who rank with the worlds best. Our goal is to be competitive with the best so we

both win and create jobs.” —Craig Barrett (Time/03.01.04)

Indian GDP/1990-2002: Ag, 34% to 21%; services,

40% to 56%

Source: The Economist/02.04

Level 5 (top) ranking/Carnegie Mellon

Software Engineering Institute: 35 of 70

companies in world are from India

Source: Wired/02.04

The “Ownership Society” (GWB): “This is a bundle of proposals that treat

workers as self-reliant pioneers who rise through several employers and

careers. To thrive, these pioneers need survival tools. They need to own their own capital reserves, their retraining

programs, their own pensions and their own health insurance.” —David

Brooks/NYT/12.20.03

“A new suspect emerges in hunt for missing U.S.

jobs” —Headline/FT/02.17.04/on small business

off-shoring

“Going Global: Flush with billions in foreign reserves,

China is embarking on a buying spree” —Cover/ Newsweek/ 03.01.04/ on

China’s aggressive offshore acquisition activity (buying brands,

technology, etc.)

“CLONING COLLEGE: South Korea’s

biomedical researchers, unhampered by politics, do world-class research

on the cheap” —Headline,

Newsweek/03.01.04

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%D.I.Y. (major “home projects”) … 80%

Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)All consumer purchases … 83%

Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%

Health Care … 80%

“Tap into a midlife woman’s renewed sense of self, and your cash registers are likely to start

ringing” —Headline/Fast Company/03.04

“And even if they manage to get the age thing right, [Marti] Barletta says companies still tend to screw up in fairly predictable ways when they add women to the equation. Too often, their first impulse is to paint the

brand pink, lavishing their ads with flowers and bows, or, conversely, pandering with images of women

warriors and other cheesy clichés. In other cases they use language intended to be empathetic that come

across instead as borderline offensive. ‘One bank took out an ad saying, We recognize women’s special

needs,’ says Barletta. ‘No offense, but doesn’t that sound like the Special Olympics?’ ” —Fast Company/03.04

03.02.04

Flextronics

--$14B; 100K employees; 60% p.a. growth (’93-’00)

-- “contract mfg” to EMS/Electronics Manufacturing Services (design, mfg, logistics,

repair); “total package of outsourcing solutions” (Pamela Gordon, Technology Forecasters)

-- “The future of manufacturing isn’t just in maling things but adding value” (3,500 design

engineers)

Source: Asia Inc./02.2004

“As China becomes the world’s factory and Flextronics becomes

the biggest electronics manufacturer in China, policy makers and analysts wonder

whether there will be a future for manufacturing in Singapore, Malaysia, North America or

Europe.” —Asia Inc./02.2004

“INDIA—The Next Manufacturing Hub?” —Asia Inc./02.04

02.22.04

“The Cold War armies were not great armies, because all the decisions were made by generals and politicians. In

great armies, the job of generals is to back up their sergeants.” —COL Tom Wilhelm, from Robert

Kaplan, “The Man Who Would Be Khan,” The Atlantic, 03.2004

“With a Small Car, India Takes Big Step Onto Global Stage” —Headline, p. 1, WSJ, 02.05.2004

“Life is not a journey to the grave with the intention of

arriving safely in a pretty and well-preserved body—but rather a skid in broadside, thoroughly used up, totally worn out, and

loudly proclaiming, ‘Wow, what a ride!’ ” —anon.

“Beware of the tyranny of making Small Changes

to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman,

PepsiCo

02.18.04

Winning the Merger Game Is Possible

--Lots of deals--Little deals

--Friendly deals--Stay close to core competence--Strategy is easy to understand

Source: “The Mega-merger Mouse Trap”/Wall Street Journal02.17.2004/David Harding & Sam Rovit, Bain & Co./re

Comcast-Disney

02.10.04

Possession Experiences /“Desires for things”/Young adulthood/to 38

Catered Experiences/ “Desires to be served by others”/Middle adulthood

Being Experiences/“Desires for trancendany experiences”/Late

adulthood

Source: David Wolfe and Robert Snyder/Ageless Marketing

POSSESSION EXPERIENCE: New car, home entertainment system, new boat, first home …

CATERED EXPERIENCE: Thrilling theater performance, experience of playing on an exclusive golf course, throwing a highly

successful catered party …

BEING EXPERIENCE: Heading up a charity ball, helping a young person master a problem,

learning an exciting new thing …

Source: David Wolfe and Robert Snyder, Ageless Marketing

“Catered experiences more likely say ‘We have arrived!’ They mark the first stage of

being someone versus becoming someone.”

Source: David Wolfe and Robert Snyder, Ageless Marketing

02.07.04

Marketing to Women, Martha Barletta

EVEolution: The Eight Truths of Marketing to Women, Faith Popcorn & Lys Marigold

Ageless Marketing, David Wolfe & Robert Snyder

Marketing to the Mindset of Boomers and Their Elders, Carol Morgan & Doran Levy

Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-Buitoni

The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf Jensen

Trading Up: The New American Luxury, Michael Silverstein & Neil Fiske

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%D.I.Y. (major “home projects”) … 80%

Consumer Electronics … 51% Cars … 68% (90%)

All consumer purchases … 83% Bank Account … 89%

Household investment decisions … 67%Small business loans … 70%

Health Care … 80%

44-65: “New Consumer Majority”*

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

“Aging Baby-boomers and Women: Typical Niche Market, or This

Decade’s Only Source of Revenue Growth?” —David Wolfe

and Robert Snyder, Ageless Marketing

“Baby-boomer Women: The Sweetest

of Sweet Spots for Marketers” —David Wolfe and Robert

Snyder, Ageless Marketing

“The New Consumer Majority is the only adult

market with realistic prospects for significant

sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert

Snyder, Ageless Marketing

02.03.04

Bernie Goldhirsh: Sailing his passion, but sailing mags for

yachtsmen only … start Sail. Sail a biz success, but biz

mags for corporate types only

… start Inc.

1 in 10 tech jobs headed offshore by

end of 2004.

Source: Gartner Group/06.03

2004/SF’s Gavin Newsome: top 3 jobs

to women … Fire Chief, Police Chief, DA (All were

held by men)

Cirque du Soleil: Talent (12 full-time

scouts, database of 20,000). R&D (40% of

profits; 2X avg corp). Controls (shows are profit centers; partners like Disney offset costs;

$100M on $500M). Scarcity builds buzz/brand (1 new show per year. “People tell me we’re leaving money on the table by not duplicating our shows. They’re right.”—Daniel

Lamarre, president).Source: “The Phantasmagoria Factory”/Business 2.0/1-2.2004

01.29.04

Dell + IBM + Harley Davidson

= Magic!

Biz News 01.22.2004

Kodak

AT&T

Ford

Jack on Leadership

Integrity: Tell the truth. Admit mistakes. Demonstrate fairness and compassion. Listen.

Value human dignity.

Intelligence: IQ. EQ.

“4Es”: Energy. Energize. Edge. Execute.

Passion

Source: WSJ/01.23.2004

“What is it that distinguishes the thousands of years of history from what we think of as modern times?

The answer goes way beyond the progress of science, technology, capitalism and democracy. … The

revolutionary idea that defines the boundary between modern times and the past is the mastery of risk: the notion that the future is more than a whim of the gods

and that men and women are not passive before nature. [ Thinkers like Luca Paccioli, Jacob Bernoulli and Abraham de Moivre] converted risk-taking into

one of the prime catalysts that drives modern Western society … and converted the future from an enemy into an opportunity.”—Peter Bernstein, Against the

Gods: The Remarkable Story of Risk

“The world would be a dull place if people lacked conceit and

confidence in their own good fortune. Keynes had to admit that

‘If human nature felt no temptation to take a chance there might not be much investment merely as a result of cold calculation.’ ” —Peter Bernstein, Against the Gods: The Remarkable Story of Risk

“SCS”/Supply Chain Solutions: 750 locations;

$2.5B; fastest growing division; 19 acquisitions,

including a bank

Source: Fast Company/02.04

TIM MONICH: “the man Hollywood turns to for

the right accent”

Source: Boston Globe/01.25.2004

01.20.04

Cost of a Programmer, per IBM …

China: $12.50 per hourUSA: $56 per hour

Source: WSJ/01.19.2004

01.17.04

“We have no future because our present is too volatile.

We have only risk management. The spinning

of the given moment’s scenarios. Pattern

recognition.” —from William Gibson, Pattern Recognition

01.12.04

“The world’s new dimension (computers, Internet, globalization,

instantaneous communication, widely available instruments of mass

destruction and so on) amounts to a new metaphysics that, by empowering

individual zealots or agitated tribes with unappeasable grievances, makes the world unstable and dangerous in

radically new ways.” —Lance Morrow/Evil

Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of

undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” …

consumer: “They are our little mechanical buddies. They have personality. When they are

running efficiently, our lives are running efficiently. They are part of my family.” …

“machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry

room” (complements Sub-Zero refrigerator and home-theater center.

Source: New York Times Magazine/01.11.2004

“Armies are like plants, immobile, firm-rooted, nourished through

long stems to the head” … guerillas: “might be a vapour;”

fighting guerillas “like eating soup with a knife”

Source: T.E. Lawrence

01.08.04

--79% of U.S. jobs in “structurally changed professions” (“permanently eliminated jobs”)(40K of 160K U.S. IBM)

--“As we trade we release more labor from the service sector because our highly skilled and highly paid workers lose their competitive advantage. So we go to the next big thing. We specialize in innovation. We develop new products and start new industries.” (Erica Groshen, labor economist, Fed of NY)

Source: CNN/Money/01.07.2004

“There is no job that is America’s God-given right

anymore.” —Carly Fiorina/ HP/

01.08.2004

“The world has arrived at a rare strategic inflection point where

nearly half its population—living in China, India and Russia—have been

integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004

“September 11 amounts to World War III—the third

great totalitarian challenge to open societies in the last

100 years.” —Thomas Friedman/NYT/01.08.2004

Save the date. Dennis Kozlowski and Mark Swartz. Martha Stewart. Scott Sullivan. John Rigas. Walter

Forbes and Kirk Shelton. Frank Quattrone. Richard Scrushy.

Miscl. Enronnies

Source: Headline/Business Day/NYT/01.08.2004

Thunder Run/3rd Infantry Division/04.07.2004/”We wanted to

create as much chaos as possible.”—COL David Perkins/”Disorient and

demoralize”—DHR

“Volvo Teams Up to Build What Women Want:

Concept Car Goes for Great Storage, Easy

Maintenance” —headline/USA Today/12.16.2004/140-person team;80%

women

“Q: What will happen when a national party can fit on

a laptop?

“A: See below.”

Source: Headline/Washington Post/OUTLOOK/12.14.2003

01.07.04

China Roars!

TomPeters/01.01.2004

“China has become a manufacturing hub for the rest of the world in low-end labor-intensive goods—and the

rest of the world is becoming a manufacturing hub for China in high-end, capital-intensive goods. …

China may be a threat to certain parts of the global supply chain that rely on low-cost labor, but it

represents an even greater opportunity via production-efficiency gains, economic welfare gains and long-term dynamic potential. Its booming exports are more than matched by booming industrial imports and foreign investment opportunities. It has become

the new engine of global growth.”Source: Glen Hodgson & Mark Worrall/Export Development Canada, in “China Takes

Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of

Total Global Growth in 2002.

Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

1998-2003: 45,000,000 layoffs in state sector; offset by $450B in

foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico,

15% in Korea.


50% of output from private firms, 37% from state-owned

firms; 80% of workforce (incl. rural) now in private

employ.


Population growth = 1%; two-thirds of housing

privately owned, 90% of urban Chinese own a home

(vs. 61% in Japan)


200 cities with >1,000,000 population.


200,000,000 unemployed; must create 20,000,000 jobs per year

to offset layoffs; 400,000,000 elderly Chinese by 2030

(currently no pension funds).


397,000,000 fixed phone

lines = 90X since 1989.


2003: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%:

DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs,

PDAs, car stereos).Source: “China Takes Off”, David Hale & Lyric Hughes

Hale/Foreign Affairs/Nov-Dec2003

“When the Chinese Consumer Is King:

America’s mass market is second to none.

Someday it will just be second.” —Headline, New York Times/12.14.2003

World economic output: U.S.A., 21%; EU, 16%; China, 13%

(2X since1991)

Source: New York Times/12.14.2003

“America, like everyone else, must get used to being a loser as well as a gainer in the global economy. In the end, the

21st century is unlikely to be the American Century.” —”When the Chinese Consumer Is King”/New

York Times/12.14.2003. “The notion that God intended Americans to be permanently

wealthier than the rest of the world, that gets less and less likely as time

goes on.” —Robert Solow, Nobel laureate in economics/New York Times/12.14.2003

Yo, Jim . Or:

The Case for …

Technicolor!Tom Peters/12.30.2003

“intrepid, unprincipled, reckless, predatory, with

boundless ambition, civilized in externals but

a savage at heart.”

Herman Melville on JPJ: “intrepid, unprincipled,

reckless, predatory, with boundless ambition,

civilized in externals but a savage at heart.” —from Evan

Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy

Huh?

“Humility: The Surprise Factor in Leadership … bosses with Gung-

ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/

re JCollins/10.03

Jim & Tom. Joined at the

hip. Not.

I. Good to GreatII. Built to LastIII. Quiet, Humble Leaders

Good to Great: Fannie Mae … Kroger … Walgreens … Philip

Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo

Good to Great: “Fannie Mae and Freddie Mac receive as much as

$164 billion in implicit federal subsidies but have done little to

increase home ownership or reduce the cost of home loans,

according to a draft study by the Federal Reserve.” —New York Times/12.23.03

(Average rate reduction is 7 basis points, or .07%)

Great Companies … SET THE AGENDA.

(Period.)

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers

US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3M …

Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle …

Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express

… Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN …

T & B: Atari, DEC, WANG?

J vs. T: HP/CarlyF?

Built to Last v. Built to Flip

“The problem with Built to Last is that it’s a romantic notion. Large companies are

incapable of ongoing innovation, of ongoing flexibility.”

“Increasingly, successful businesses will be ephemeral. They will be built to yield

something of value – and once that value has been exhausted, they will vanish.”

Fast Company

Warren Bennis & Patricia Ward Biederman/

Organizing Genius: Great Groups Don’t

Last Very Long!

W.A. Mozart W.A. Mozart 1756 – 17911756 – 1791

HE CHANGED THE WORLDHE CHANGED THE WORLD

AND AND

ENRICHED HUMANITY ENRICHED HUMANITY

“We are in a

brawl with no rules.”

Paul Allaire

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

“The 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 flourish—and 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 apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in

1000 A.D.]”

Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms

should aspire to live forever? Greatness is fleeting and, for corporations, it will become

ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic

frenzy of value creation during a short space of time, rather than to live forever.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness.

F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.

Huh?

“Quiet, workmanlike, stoic leaders bring about the big

transformations.”--JC

Huh?

“Humility: The Surprise Factor in Leadership … bosses with Gung-

ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/

re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)

WellingtonNelsonDisraeliChurchill

MontgomeryThatcher

“Humble” Pastels?

T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S. Grant/W.T. Sherman

TR/FDR/LBJ/RR/JFKPatton/Monty/Halsey

M.L. King/C. de Gaulle/M. Gandhi/W. ChurchillPicasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson

H. Clinton/G. Steinem/I. Gandhi/G. Meir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/

S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/

T.A. Edison Rummy/Norm/Henry/Wolfie

Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth

Dickinson/Arabella Babb Mansfield/Margaret Sanger

“You can’t behave in a calm, rational manner. You’ve got to

be out there on the lunatic fringe.” — Jack Welch,

on GE’s quality program

“Roosevelt’s duplicity, Churchill’s self-absorption” … “We are all

worms. But I do believe that I am a glow-worm.” (WSC) … “Imperial

and bold” [WSC and TR] … “arrogance and instability” … “rough, sarcastic, bullying”

Source: Jon Meacham, Franklin and Winston, et al.

“a vainglorious self-promoter spoiling for

a fight” —Arthur Koestler on Galileo

Herman Melville on JPJ: “intrepid, unprincipled,

reckless, predatory, with boundless ambition,

civilized in externals but a savage at heart.” —from Evan

Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy

Audie Murphy was the most decorated soldier in WW2.

He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he

never won …

… the Good Conduct medal.

Jim Collins vs. Michael Maccoby

“quiet, workmanlike, stoic”vs.

“larger-than-life leaders”/ “egoists, charmers, risk-takers with big

visions”: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates

“In Tom’s world, it’s always better to try a

swan dive and deliver a

colossal belly flop than to step timidly off the

board while holding your nose.” —Fast Company /October2003

The Re-imagineer’s Credo … or, Pity the Poor Brown*

Technicolor Times demand …Technicolor Leaders and Boards who recruit …

Technicolor People who are sent on …Technicolor Quests to execute …

Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …

Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …

Technicolor Times.

*WSC

“In Italy for 30 years under the Borgias they had warfare, terror, murder,

bloodshed—and produced Michelangelo, da Vinci and the

Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce

—the cuckoo clock.”

Orson Welles, as Harry Lime, in The Third Man

The Breaking of Nations: Order and Chaos in the

Twenty-first CenturyRobert Cooper (as interpreted by Tom Peters)

“This is a dangerous world and it is going to become more

dangerous.”

“We may not be interested in chaos but chaos is interested

in us.”

Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

“What happened after 1945 was not so much a radically new system as the concentration and culmination of the old

one.” —Robert Cooper, on the Cold War, from The

Breaking of Nations: Order and Chaos in the Twenty-first Century

“What has been emerging into the daylight since 1989 is not a

rearrangement of the old system but a new system. Behind this lies

a new form of statehood, or at least states that are behaving in a

radically different way from the past.” —Robert Cooper, The Breaking of Nations: Order

and Chaos in the Twenty-first Century

“The image of peace and order through a single hegemonic power center [is

wrong]. … It was not the empires but the small states that proved to be a dynamic

force in the world. Empires are ll-designed for promoting change. Holding

an empire together requires an authoritarian political style; innovation

leads to instability.” —Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first

Century

Read This!

“The new century risks being overrun by both anarchy and technology. The two great destroyers of history may reinforce each other. Both the spread of terrorism and that of weapons of mass destruction point to a world in which

Western governments are losing control. The spread of the technology of mass destruction represents a potentially massive redistribution of power

away from the advanced industrial (and democratic) states and toward smaller states that may be less stable and have less of a stake in an orderly world; or more dramatically still, it may represent a redistribution of power

away from the state itself and towards individuals, that is to say terrorists or criminals. In the past to be damaging, an ideological movement had to be

widespread to recruit enough support to take on authority. Henceforth, comparatively small groups will be able to do the sort of damage which

before only state armies or major revolutionary movements could achieve. A few fanatics with a ‘dirty bomb’ or biological weapons will be able to cause

death on a scale not previously envisaged. … Emancipation, diversity, global communication—all of the things that promise an age of riches and creativity—could also bring a nightmare in which states lose control of the means of

violence and people lose control of their futures.”—Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

Reflect.

“The two systems—the modern based on balance

and the post-modern based on openness—do not co-

exist well together.” —Robert Cooper,

The Breaking of Nations: Order and Chaos in the Twenty-first Century

“Before we can talk about the security requirements for today

and tomorrow, we have to forget the security rules of yesterday.” —Robert Cooper, The

Breaking of Nations: Order and Chaos in the Twenty-first Century

TP: Reflect. Honor. Destroy.

Tom Peters Seminar2004 NEW SLIDES

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