X.always MASTER PART TWO 10 MARCH 2007. Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART...

X.alwaysX.alwaysMASTERMASTER

PARTPART TWOTWO10 MARCH 200710 MARCH 2007

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

XAlways.XAlways.MASTER/PART 2MASTER/PART 2.1O March 2007.1O March 2007

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

VALUE VALUE ADDED ADDED

#8#8

EXCELLENCE. EXCELLENCE.

VALUE ADDED.VALUE ADDED.UP THE LADDER.UP THE LADDER.

EXCELLENCE.EXCELLENCE.

VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.

$55$55BB

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of choice.”/BW

(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )

IBM Global ServicesIBM Global Services* (*Integrated Systems

Services Corp.): $$55B55B

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM

would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

“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 Investors have ggrasraspped that this is not a ed that this is not a ppassinassingg

fancfancyy, but a , but a ppotential otential restructurinrestructuringg of the wa of the wayy the world the world

oopperates and how value will be erates and how value will be created in the futurecreated in the future.”.” —Narayana Murthy,

chairman’s letter, Infosys Annual Report

““Big Brown’s New Bag: UPSBig Brown’s New Bag: UPS

Aims to Be theAims to Be the Traffic Traffic Manager for Manager for CorCorpporate orate

AmericaAmerica”” —Headline/BW/2004

““SCS”/Supply Chain SCS”/Supply Chain SolutionsSolutions:: 750 locations; 750 locations;

$2.5B; fastest growing $2.5B; fastest growing division; 19 acquisitions, division; 19 acquisitions,

including a bankincluding a bank

Source: Fast Company

MasterCard MasterCard AdvisorsAdvisors

“Security ‘devices’” to “Turnkey security “Turnkey security solutions”solutions” (A/C, elevators, DIY,

photo shops, etc., etc.)

Home Depot Home Depot Business ToolBox:Business ToolBox:

Payroll processing. Credit card processing. Personnel paperwork. Mobile phones. Shipping. Health insuranceHealth insurance. 12K customers (plumbers, electricians,

small homebuilders, and contractors). Source: Forbes, 0918.06

Gamechangging “Solutions”: Bet-the-Company

IBMIBMUPSUPS

XeroxXeroxMasterCardMasterCard

GEGE

BestBuyBestBuy

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

Huge: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

The Value-added Ladder/ STUFF ‘N’ THINGSSTUFF ‘N’ THINGS

GoodsGoods Raw Materials Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONSTRANSACTIONS

ServicesServicesGoods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Gamechanging Gamechanging SolutionsSolutions

ServicesGoods

Raw Materials

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, is : “Our ‘it’ works, is delivered on time” (“Close”)delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our ‘it’ “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)can add value—a ‘useful it’ ” (“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and deliver our ‘system’ can change you and deliver

‘business advantage’‘business advantage’” (“Culture-” (“Culture-Strategic change”)Strategic change”)

Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Implemented Implemented Gamechanging Gamechanging

SolutionsSolutionsServicesGoods

Raw Materials


#8A#8A

To The Mat: The ““5 Damn Its5 Damn Its””

Women.Women.

PSF.PSF.Brand you.Brand you.

R.f.a.R.f.a.EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

EXCELLENCE.EXCELLENCE.NECESSITY.NECESSITY.

OPPORTUNITY. OPPORTUNITY.

“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be

afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …

yyou’ve ou’ve become become

irrelevant irrelevant toto y your our

customerscustomers.”.”

—John Battelle/Point/Advertising Age/07.05

Chicago:

HRMACHRMAC

Sarah: “ Mom, what do you do?”

Mom: “I’m ‘overhead.’‘overhead.’””

““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”

oror … …

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””


SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.PSF. (PSF++)PSF. (PSF++)

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

“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 We ppaayy for for ourselvesourselves,, and we and we

actuallactuallyy make mone make moneyy for the comfor the comppanany.”y.” —Frank

Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage

(Source: sas.com)

Mantra:

“Eichorn “Eichorn it!”it!”

Answer:

PSFPSF

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

The New Enterprise Value-Added Equation/Mark2006

(1) 100% (1) 100% “WOW PROJECTS” “WOW PROJECTS” (New Org “DNA”/“The Work”)(New Org “DNA”/“The Work”)

++ (2) Incredible (2) Incredible “TALENT”“TALENT” Transformed intoTransformed into (3) Entrepreneurial (3) Entrepreneurial “BRAND YOUs”“BRAND YOUs” and and

(4) Launched on Awesome (4) Launched on Awesome “QUESTS FOR EXCELLENCE”“QUESTS FOR EXCELLENCE”

== (5) Internal (5) Internal “Rockin’ PSFs”“Rockin’ PSFs” (Staff Depts. Morphed into Wildly (Staff Depts. Morphed into Wildly

Innovative Innovative PProfessional rofessional SService ervice FFirms) … irms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise

Value Proposition from “Superior Products & Services” to Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” “ENCOMPASSING SOLUTIONS” &&

“GAME-CHANGING CLIENT“GAME-CHANGING CLIENT SUCCESS” SUCCESS”

Big Idea/“Meta”-Idea/Premier “Engine of Value Added”

(1) (1) The TalentThe Talent: “Best Roster” of Entrepreneurial-: “Best Roster” of Entrepreneurial-minded minded Brand Yous.Brand Yous.

(2) (2) The (Virtual) OrganizationThe (Virtual) Organization: Internal or : Internal or External External “PSF”/Professional Service Firm“PSF”/Professional Service Firm

working with “Best Anywhere” = Engine of working with “Best Anywhere” = Engine of Value Added through the Application of Creative Value Added through the Application of Creative

“Intellectual Capital”“Intellectual Capital”

(3) (3) The Work ProductThe Work Product: “Game Changer”/ : “Game Changer”/ “Gaspworthy” “Gaspworthy” WOW ProjectsWOW Projects


PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! Wow! ProjectsProjects

(“Different” vs “Better”/The Work)

Series/Reinventing WorkSeries/Reinventing Work

The ProThe Projject 50ect 50: Fifty Ways To Transform : Fifty Ways To Transform Every “Task” Into A Project That MattersEvery “Task” Into A Project That Matters

The Professional Service Firm 50The Professional Service Firm 50: Fifty : Fifty Ways To Transform Your “Department” Ways To Transform Your “Department” Into A Professional Service Firm Whose Into A Professional Service Firm Whose Trademarks Are Passion And InnovationTrademarks Are Passion And Innovation

The Brand You 50The Brand You 50: Fifty Ways To : Fifty Ways To Transform Yourself From An “Employee” Transform Yourself From An “Employee”

Into A Brand That Shouts Distinction, Into A Brand That Shouts Distinction, Commitment, And PassionCommitment, And Passion

““Astonish me!”Astonish me!” (SD).

“Build something great!”“Build something great!” (HY).

“Make it immortal!”“Make it immortal!” (DO)

“Insanely great” “Insanely great” (SJ)(SJ)

“… “… but I'm having a hard timebut I'm having a hard time imagining 300 million Brand Yous.“imagining 300 million Brand Yous.“

““Would you call a clerk in a purchasing Would you call a clerk in a purchasing department at a big insurance company department at a big insurance company

"brand you"? Probably not. But what "brand you"? Probably not. But what about a single Hispanic Mom, age 32, about a single Hispanic Mom, age 32,

raising 3 kids in the LA area and holding raising 3 kids in the LA area and holding 2.5 jobs to do so? I'd call her a hero, self-2.5 jobs to do so? I'd call her a hero, self-

reliant, resilientreliant, resilient——and a Brand You!”and a Brand You!”

Posted by tom peters at 10:16 PM, November 20, 2006

Muhammad Yunus:Muhammad Yunus: ““All human beings All human beings are entrepreneursare entrepreneurs.. When we were in When we were in

the caves we were all self-employed … the caves we were all self-employed … finding our food, feeding ourselves. finding our food, feeding ourselves.

That’s where human history began … That’s where human history began … As civilization came we suppressedAs civilization came we suppressed

it. ... We became labor because they it. ... We became labor because they stamped us, ‘You are labor.’ Westamped us, ‘You are labor.’ We

forgot that we are entrepreneurs.”forgot that we are entrepreneurs.”

Source: Muhammad Yunus/The News Hour—PBS/1122.2006/Source: Muhammad Yunus/The News Hour—PBS/1122.2006/The natural state of economic activity is for everyone to be an The natural state of economic activity is for everyone to be an

entrepreneur; modern economies hide this from us and encourageentrepreneur; modern economies hide this from us and encourage us to become employees./John/ShakespearesFool, posted us to become employees./John/ShakespearesFool, posted

@ tompeters.com, November 22, 2006, 9:27 PM@ tompeters.com, November 22, 2006, 9:27 PM

““The older I get, and the more The older I get, and the more I think about ‘legacy,’ the I think about ‘legacy,’ the more interested I get in more interested I get in ‘projects’ and the less ‘projects’ and the less

interested I am in ‘process.’ interested I am in ‘process.’ We need to liberate the We need to liberate the

human spirit. Projects do that. human spirit. Projects do that. We strangle on %^#*ing We strangle on %^#*ing

process.”process.” —media exec to TP, 0109.2007—media exec to TP, 0109.2007

Psf.Psf.Bedrock.Bedrock.

PSFPSF/Professional Service Firm/Beliefs/Professional Service Firm/Beliefs

ProfessionProfession: : Calling/Passion to make aCalling/Passion to make a difference/Excellence difference/Excellence (always)(always)

point of viewpoint of view: : know exactly what weknow exactly what we stand for/ stand for/ “Dramatic “Dramatic Difference”Difference”

ClientClient: : enduring, test-the-limits enduring, test-the-limits relationship/Trusted advisor relationship/Trusted advisor

SolutionSolution: : Rock His-her World/ Rock His-her World/ “wow”“wow”// implemented “Culture implemented “Culture change”/change”/ >>>>>> “satisfaction” >>>>>> “satisfaction”

PSF-BedrockPSF-Bedrock

Profession/Profession/Calling-Calling- ExcellenceExcellence (always)(always)

Client/Client/enduring, test-the-enduring, test-the- limits limits relationshiprelationship

Solution/Solution/Rock His-Rock His- her World her World


Profession/Profession/Calling-Calling- ExcellenceExcellence (always) (always)

Client/Client/trusted advisortrusted advisor

Solution/Solution/Rock His-Rock His- her World her World


Profession/Profession/Calling-Calling- ExcellenceExcellence (always) (always)

Client/Client/enduring, test-the-enduring, test-the- limits limits relationshiprelationship

Solution/Solution/>>>”satisfaction”>>>”satisfaction”

“Solutions World”:

The Mega-Mega-PSFPSF

Big Idea:

“Corporation” as “Corporation” as

Mega-“PSFMega-“PSF”” (Professional (Professional Service Firm*)Service Firm*)

* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”)

Creating/Applying Intellectual Capital (“Work Product”)


Brand You(S)Brand You(S)(“Distinct” or “Extinct”/The Talent)

+

Wow! Project(s)Wow! Project(s) (“Different” vs “Better”/The Work)

==

PSF(S)PSF(S) (Professional Service Firm “model”/The Organizing Principle)

=

“Corporation” as“Corporation” as

“Mega-“Mega-PSF”PSF”

Agriculture Age (farmers)

Industrial Age (factory workers)

Information Age (knowledge workers)

Conceptual Age*Conceptual Age* (creators)

*Murakami Teruyasu: “Age of Creation Intensification”

Source: Dan Pink, A Whole New Mind

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’”I-banking/ Accounting/PR/Etc. has become a ‘commodity’”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

?????

Do good Do good (excellent?!)(excellent?!) work work

Make a lot of moneyMake a lot of money

Pointed Pointed Point of Point of View!View!

R.POV8R.POV8**Remarkable Point Of View/8 Words or less/“If you can’t state your

position in eight words or less, you don’t have a position.”—SG

“If you can’t write your movie idea on

the back of a back of a business cardbusiness card,,

you ain’t got a movie.” —Samuel Goldwyn

The PSF35: The Client Experience11. Always team with client: “full partners in 11. Always team with client: “full partners in achieving memorable results” achieving memorable results” (Wanted: “Chimeras(Wanted: “Chimeras of Moonstruck Minds”!) of Moonstruck Minds”!)12. We will seek assistance Anywhere to assemble the Best-in-12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project Planet Team for the Project13. Client Team Members routinely declare that working with us13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” was “the Peak Experience of my Career”14. The job’s not done until implementation is14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) “100.00% complete” (Those who don’t “get it” must go)

15.15. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL THE CLIENT HAS EXPERIENCED “CULTURE THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” CHANGE”16.16. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER” SIGNIFICANT “TECHNOLOGY TRANSFER” HAS TAKEN PLACE-ROOT HAS TAKEN PLACE-ROOT (“Teach a man to fish …”)(“Teach a man to fish …”)

17.17. The Final Exam: The Final Exam: DID WE MAKE A DRAMATIC,DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? LASTING, GAME-CHANGING DIFFERENCE?

“The business of selling is not just about matching viable solutions to the customers that require

them. It’s eIt’s eqqualluallyy about mana about managginingg the chanthe changge e pprocess the customer rocess the customer

will need to will need to ggo through to o through to imimpplement the solution and lement the solution and

achieve the value achieve the value ppromised byromised by the solutionthe solution.”*

(*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

The PSF35: The People & The Leadership

18. 18. TALENT FANATICSTALENT FANATICS (“Best-Coolest place to work”) (PERIOD) (“Best-Coolest place to work”) (PERIOD)19. 19. EYE FOR THE PECULIAREYE FOR THE PECULIAR (Hiring: Go beyond “same old, (Hiring: Go beyond “same old, same old”) same old”) 20. Early Opportunities (vs. “Wait your turn”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as21. Up or Out (Based on “Legacy”/Mentoring as much as “ “Billings”/“Rainmaking”)Billings”/“Rainmaking”)22. Slide the Old Aside/Make Room for Youth (Find oldsters22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?)new roles?)23. 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” DAY #“R” [R = Retirement][R = Retirement]24. Office/Practice Leaders Evaluated Primarily on 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building SkillsMentoring-Team Building Skills25. 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)26. Team Leadership Skills Valued Early26. Team Leadership Skills Valued Early27. Partner with B.I.W. [Best In World] Outsiders as Needed27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Viewsand to Infuse Different Views

The PSF35: The Firm & The Brand

28. 28. EAT-SLEEP-BREATHE-OOZE INTEGRITYEAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is (“My life is my message”—Gandhi)my message”—Gandhi)29. Excellence+ in 29. Excellence+ in EXECUTIONEXECUTION … 100.00% of the Time … 100.00% of the Time (No such thing as a “small sins”/World Series Ring to(No such thing as a “small sins”/World Series Ring to the Batboy!) the Batboy!) 30. “Drop everything”/“Swarm” to Support a Harried-On30. “Drop everything”/“Swarm” to Support a Harried-On The Verge TeamThe Verge Team31. 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEILCIRQUE DU SOLEIL32. 32. A PROPRIETARY METHODOLOGYA PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, (FBR, McKinsey, Chiat Day, IDEO, old EDS)old EDS)33. Web (Technology) Obsession33. Web (Technology) Obsession34. 34. BRAND/“LOVEMARK” MANIACSBRAND/“LOVEMARK” MANIACS (Organize Around a Point (Organize Around a Point of View Worth BROADCASTING: “You must be theof View Worth BROADCASTING: “You must be the change you wish to see in the world”—Gandhi)change you wish to see in the world”—Gandhi)3535. . PASSION! ENTHUSIASM!PASSION! ENTHUSIASM! (Passion & Enthusiasm have as (Passion & Enthusiasm have as much a place at the Head Table in a “PSF” as in amuch a place at the Head Table in a “PSF” as in a widgets factory: “You can’t behave in a calm, rationalwidgets factory: “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic manner. You’ve got to be out there on the lunatic fringe”—Jack Welch)fringe”—Jack Welch)

The PSF35: The Firm & The Brand

28. 28. EAT-SLEEP-BREATHE-OOZE INTEGRITYEAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life (“My life is my message”—Gandhi)is my message”—Gandhi)

29. Excellence+ in 29. Excellence+ in EXECUTIONEXECUTION … 100.00% of the Time… 100.00% of the Time30. “Drop everything”/“Swarm” to Support a Harried-On30. “Drop everything”/“Swarm” to Support a Harried-On The Verge TeamThe Verge Team

31. 31. SPEND ON R&D LIKE A TECH FIRM.SPEND ON R&D LIKE A TECH FIRM.32. 32. A PROPRIETARY METHODOLOGYA PROPRIETARY METHODOLOGY (FBR, McKinsey, (FBR, McKinsey, Chiat Day, IDEO, old EDS)Chiat Day, IDEO, old EDS)

33. 33. BRAND MANIACSBRAND MANIACS (Organize Around a Point of View Worth(Organize Around a Point of View Worth BROADCASTING)BROADCASTING)

3434. . PASSION! ENTHUSIASM!PASSION! ENTHUSIASM!

35.35. EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

“PSF” Nirvana

CounselCounseloror

Trusted AdvisorTrusted Advisor

Answer:

PSFPSF

PSF + BY + PSF + BY + WP = VAWP = VA

PSF + BY + PSF + BY + WPWP + DD + + DD + E = UVA E = UVA

PSF + BY + PSF + BY + WP + DD + WP + DD +

E = E = UUVAVA

PSFPSF (Professional Service Firm) + BYBY (Brand You) + WPWP (WOW Projects) +

DDDD (Dramatic Difference)

+ EE (Excellence) = UVAUVA (Unassailable

Value-Added)

Answer:

PSFPSF

“Big Brown’s New Bag: UPS

Aims to Be the Traffic Manager for Corporate

America” —Headline/BW/2004

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

Static/Imitative

Integrity.Integrity.Quality.Quality.

Continuous Improvement.Continuous Improvement.Superior Service Superior Service (Exceeds Expectations.)(Exceeds Expectations.)

Completely Satisfactory Transaction.Completely Satisfactory Transaction.Smooth Evolution.Smooth Evolution.

Market Share.Market Share.

Dynamic/Different

Dramatic Difference!Dramatic Difference!Disruptive!Disruptive!

Insanely Great! Insanely Great! (Quality++++)(Quality++++)

Life-(Industry-)changing Experience!Life-(Industry-)changing Experience!Game-changing!Game-changing!

WOW!WOW!Surprise!Surprise!Delight!Delight!

Breathtaking!Breathtaking!Punctuated Equilibrium!Punctuated Equilibrium!

Market Creation!Market Creation!

EXCELLENCEEXCELLENCE = =

Flawless Flawless EXECUTIONEXECUTION + Continuous + Continuous IMPROVEMENTIMPROVEMENT

+ Brilliantly Trained + Brilliantly Trained PEOPLEPEOPLE

+Gamechanging Gamechanging QUESTSQUESTS + +

WEIRD WEIRD Rosters +Rosters + GASPWORTHYGASPWORTHY Results Results


ATTITUDE.ATTITUDE.TRANSFORMATION.TRANSFORMATION.

PSF.PSF.

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet LifetimeChief of Fleet Lifetime Value Value MaximizationMaximization

StrategicStrategic Supply-chain Executive Supply-chain Executive

Customer Customer ExperienceExperience Director Director (via drivers)

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

22mm3838ss

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)

PSF Transformation: Credit Department/Trek

Was Is

Credit Dept Financial ServicesFinancial Services

Hammer on dealers until Make dealers successful so theyMake dealers successful so theythey pay CAN payCAN pay

AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany

23 employees 12 employees12 employees

Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M

Identify risky dealers Identify opportunitiesIdentify opportunities

Cost Center Profit CenterProfit Center

No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments

Source: John Burke/0330.06

Trapper: <$20<$20 per beaver pelt.

Source: WSJ

WDCP*WDCP*:: $$150150 to remove to remove

“problem beaver”; “problem beaver”; $$750750--$$1,0001,000 for flood-control for flood-control piping … so that beavers can piping … so that beavers can

stay.stay. * “Wildlife Damage-control Professional”

Source: WSJ


#8B#8B

The WOWWOW!! Project.

““Let’s make Let’s make a dent in the a dent in the universe!”universe!” —Steve

Jobs

Your Current Project?

1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THEWE AIM TO CHANGE THE WORLD. WORLD. (Insane!/Insanely(Insane!/Insanely Great!/WOW!) Great!/WOW!)

““Astonish me!”Astonish me!” (S.D).

“Build something great!”“Build something great!” (H.Y.).

“Make it immortal!”“Make it immortal!” (D.O.)

If you are not If you are not prepared to be prepared to be fired over your fired over your

beliefs … you are beliefs … you are working on the working on the

wrong project.wrong project. —TP

Will you actually Will you actually remember it as remember it as worthwhile worthwhile 10 10

yearsyears from now?” from now?” —S.H.

You! =You! = Your Project Your Project

Portfolio!Portfolio!

A “position” is A “position” is

notnot an an

“accomplishment.”“accomplishment.” —TP

WOWWOW!! Projects:

Nuts & Bolts (a few)

Playmate!*Playmate!*Playpen!Playpen!

*Can be Client, supplier … as well as Insider

Playmate!*Playmate!*Playpen!Playpen!

Prototype!Prototype!

*Can be Client, supplier … as well as Insider

Where to look for “Playmates”:

F.F.F.F.F.F.F.F. (Find a Fellow Freak Faraway)

Forward, march: : The The “Sri Lanka “Sri Lanka Stratagem”Stratagem”

Where NOT to look for “Playmates”: BIGBIG Division, BIGBIG Customer, BIGBIG Vendor,

UPUP

Culture of Prototyping

“Effective prototyping may be

the most valuable core the most valuable core competencecompetence an innovative

organization can hope

to have.” —Michael Schrage

Prototype Prototype mania/mania/

maniac!*maniac!*

THE PROJECT 50

Starting a WOWWOW!! Projects Projects

Epidemic:Epidemic:

Demos, Heroes, Demos, Heroes, Stories!Stories!

Premise:

““Ordering” Ordering” Systemic Systemic

Change is a Change is a Waste of Waste of

Time!Time!

“Somewhere in your organization, groups of

people are already doing things differently and

better. To create lastinTo create lastingg chanchangge, find these areas of e, find these areas of ppositive deviance and fan ositive deviance and fan

the flamesthe flames.”.” —Richard Tanner Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

“Some people look for things that went wrong

and try to fix them. II look for thin look for thinggs that s that

went riwent rigght, and trht, and tryy to to build off thembuild off them.”.” —Bob Stone

(Mr ReGo)

Demos!Demos! Heroes! Heroes! Stories!Stories!

Demo = Story“A key – perhaps the key –

to leadership is thethe effective communication effective communication

of a storof a story.”y.”—Howard Gardner, Leading Minds:

An Anatomy of Leadership

Best Best story story wins!wins!

REAL Org Change: Demos & ModelsDemos & Models (“Model (“Model

Installations,” “ReGo Labs”)/ Installations,” “ReGo Labs”)/ HeroesHeroes (mostly extant: “burned to (mostly extant: “burned to

reinvent gov’t”)/ reinvent gov’t”)/ StoriesStories && StorytellersStorytellers (Props!)/ (Props!)/

ChroniclersChroniclers (Writers, Videographers, Pamphleteers, Etc.)/ (Writers, Videographers, Pamphleteers, Etc.)/

CheerleadersCheerleaders && RecognitionRecognition (Pos>>Neg, Volume)/ (Pos>>Neg, Volume)/

New LanguageNew Language (Hot/Emotional/WOW)/ (Hot/Emotional/WOW)/ SeekersSeekers

(networking mania)/ (networking mania)/ ProtectorsProtectors/ / Support GroupsSupport Groups/ /

End Runs—“Pull Strategy”End Runs—“Pull Strategy” (weird alliances, weird (weird alliances, weird

customers, weird suppliers, weird alumnae-JKC)/ customers, weird suppliers, weird alumnae-JKC)/ Field “Real Field “Real People” FocusPeople” Focus (3 COs) (long way away)/(3 COs) (long way away)/

SpeedSpeed (O.O.D.A. Loops—act before the “bad guys” can react) (O.O.D.A. Loops—act before the “bad guys” can react)

C.f., Bob Stone, C.f., Bob Stone, Lessons from an Uncivil ServantLessons from an Uncivil Servant

JKC

1. Scour for renegades; wine & dine.

2. Go outside for funds.

JKCJKC

““Make your ownMake your own McKinsey”McKinsey” (AP)

Build a “School on top of a school”/Continuing-Exec

Ed (The Parallel (The Parallel Universe Strategy)Universe Strategy)

Stories … Stories … Paint me a Paint me a picturepicture … Story … Story

“infrastructure” … “infrastructure” … Demos Demos … Quick … Quick prototypes … prototypes …

ExperimentsExperiments … Heroes … … Heroes … Renegades Renegades … …

Skunkworks … Demo Skunkworks … Demo Funds … Funds … V.C.V.C. … G.M. … … G.M. … RosterRoster … Portfolio … … Portfolio … Stone’s Rules … Stone’s Rules … JKC’s JKC’s

RulesRules

Tempo:Tempo: He who He who has the has the quickest quickest

O.O.D.A. Loops* O.O.D.A. Loops* wins!wins!

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

Subversive Change

Be(very)ware “genetic constraints” (history’s looong Be(very)ware “genetic constraints” (history’s looong arm)arm)

You must “do” GandhiYou must “do” Gandhi

Hire weird (fulltime or temp)Hire weird (fulltime or temp)

Find the extant crazies (troll for them via offers to join Find the extant crazies (troll for them via offers to join weird project teams)weird project teams)

Create a (quiet) “Crazies Club”/Keep extendin’ the WebCreate a (quiet) “Crazies Club”/Keep extendin’ the Web

Create “boondocks projects” by the truckload (with Create “boondocks projects” by the truckload (with partners of every flavor)partners of every flavor)

Understand: Yours is a “protection racket”Understand: Yours is a “protection racket”Sky High Standards!! (There’s a deadly serious reason Sky High Standards!! (There’s a deadly serious reason

for “all this”—life or death)for “all this”—life or death)

TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John BoydKelly Johnson; John Boyd

“Never doubt that a Never doubt that a small group of small group of

committed peoplecommitted people can change the can change the

world. world. Indeed it isIndeed it is the only thing that the only thing that ever has.”ever has.” —Margaret Mead

SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?”

TP: ““YesYes! Work with him/her to re-frame ! Work with him/her to re-frame their principal project to the point that their principal project to the point that their their eeggoo is fully engaged and it becomes is fully engaged and it becomes something of a ‘life compulsion.’something of a ‘life compulsion.’ ” *

* “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”


#8C#8C


VALUE-ADDED LADDER II.VALUE-ADDED LADDER II. EXPERIENCE IT. EXPERIENCE IT.

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …

“We have “We have identified a identified a

‘third place.’‘third place.’ And

I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District

Manager

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

““ClubClub MedMed is more is more than just a ‘resort’; it’s a than just a ‘resort’; it’s a means of rediscovering means of rediscovering oneself, of inventing an oneself, of inventing an

entirely new ‘me.’ ”entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

WHAT CAN BROWNWHAT CAN BROWN DO FOR YOU? DO FOR YOU?


UpUp


The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding ExperiencesExperiences

Gamechanging SolutionsServicesGoods

Raw Materials

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/ “Exceeded Expectations”

vs.

“Great “Great VacationVacation”/ ”/ “Great “Great ConferenceConference”/”/ “Operation “Operation PersonalPersonal

RenewalRenewal””

Warren Goes Warren Goes Shopping …Shopping …

Q: “Why did you buy Jordan’sJordan’s Furniture?”

A: “Jordan’s is spectacular. It’s all It’s all

showmanshipshowmanship.”.”

Source: Warren Buffet interview/Boston Sunday Globe/12.05.2004

CCXXOO**Chief eXperience Officer

““Most executives Most executives have no idea how to have no idea how to

add value to a add value to a market in the market in the

metaphysical world.metaphysical world. But that is what the market

will cry out for in the future. There is no lack of

‘physical’ products to choose between.”

Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods: MaleMale dominance

Services &

Experiences: FemaleFemale dominancedominance

“ … “ … focus on focus on ‘engagement,’ not ‘engagement,’ not ‘experience’ …”‘experience’ …”

—Martin Buber, —Martin Buber, I and ThouI and Thou, 1927, 1927 (from Steve Yastrow, (from Steve Yastrow, WeWe))

Steinbeck.Steinbeck.Reductionism, Reductionism,

Perils Of.Perils Of.

“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the

fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a

whole new relational externality has come into being—an entity which is more than the sum of the fish plus the

fisherman. The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a

laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines

and write the truth. There you have recorded a reality which

cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what

you are doing. The man with this pickled fish has set down one truth and recorded in his experience many lies.

The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

"A cynic is a man who "A cynic is a man who knows the knows the priceprice of of everything and the everything and the valuevalue of nothing" of nothing"

——Oscar WildeOscar Wilde

EXCELLENCE. EXCELLENCE. EXPERIENCE.EXPERIENCE.

BONUS.BONUS.

Where Are YourWhere Are Your “2-cent Candies”? “2-cent Candies”?

Beltramo’s checkout.

SFFD door-to-door fire-hazard check.

Carpet installer booties.

Singapore candies @ Immigration

And You?

Stockholm: blanket blanket at outsideat outside table table (August)

The … Jim Jim Jeffords Jeffords oversighoversigh

t!t!

FFLLOOWWEERRPPOOWWEERR

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay


#8D#8D

EXCELLENCE. EXCELLENCE. DRAMATIC.DRAMATIC.

DIFFERENCE.DIFFERENCE.DOABLE.DOABLE.

“The ‘surplus society’ has a surplus of

similarsimilar companies, employing

similarsimilar people, with

similarsimilar educational backgrounds,

coming up with similarsimilar ideas,

producing similarsimilar things, with

similarsimilar prices and

ssimilarimilar quality.” —Kjell Nordström and

Jonas Ridderstråle, Funky Business

This is notnot a “mature

category.”

This is an “undistinguished category.”

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

pretty ordinary.”pretty ordinary.” —Barry Gibbons on “Nightmare No. 1”

$79$7988

$415$415/SqFt/Wal*Mart

$$798798/SqFt/Whole Foods

#1/10#1/1000

“Best Companies to Work for”/2005

WegmansWegmans

7X.7X. 730A-730A-800P. 800P. F12AF12A..**

*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

““It’s simple, really, It’s simple, really, Tom. Hire forTom. Hire for ss, ,

and, and, aboveabove allall, , ppromoteromote for for s.”s.”

—Starbucks middle manager/field

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb


#1T.#1T.

Donnelly’s Donnelly’s Weather Weather

Strip ServiceStrip Service

Weymouth MA


#1T.#1T.

Jim’s GroupJim’s Group

Jim Penman/“Empire Builders”/MT /Jan/Feb 2006/Australia

Jim’s GroupJim’s Group:: Jim Penman.* Jim Penman.*

1984: Jim’s Mowing. 2006: Jim’s Group. 1984: Jim’s Mowing. 2006: Jim’s Group.

2,600 franchisees2,600 franchisees (Australia, NZ, UK). (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Cleaning. Dog washing. Handyman.

Fencing. Paving. Pool care. Etc.Fencing. Paving. Pool care. Etc.

“People first.” Private. Small staff. Franchisees “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is can leave at will. 0-1 complaint per year is

norm; cut bad ones quickly.norm; cut bad ones quickly.

*Ph.D. cross-cultural anthropology; mowing on the side

Source: MT/Management Today (Australia), Jan-Feb 2006

The “Missing 900M”

Will the Boat Sink the Will the Boat Sink the Water: The Life of Water: The Life of China’s PeasantsChina’s Peasants

—Chen Guidi and Wu Chuntao


#1T.#1T.

Cirque Cirque du Soleil!du Soleil!

And the Winner is …

1. 1. Audacity of VisionAudacity of Vision2. 2. Innovation/R&D/DesignInnovation/R&D/Design3. 3. Talent Acquisition & Talent Acquisition & DevelopmentDevelopment4. Resultant “Experience”4. Resultant “Experience”5. Strategic Alliances5. Strategic Alliances6. Operations6. Operations7. Financial Management7. Financial Management8. Overall/Sustaining Excellence8. Overall/Sustaining Excellence9. “Wow!”9. “Wow!”10. 10. Lovemark!Lovemark!

““Every time we come to a Every time we come to a comfort zone, we will find a comfort zone, we will find a

way out.” “No Cloning.” way out.” “No Cloning.” “‘Reinvent the brand’ with “‘Reinvent the brand’ with each new show.” “A typical each new show.” “A typical

day at the office for me day at the office for me begins by asking, ‘begins by asking, ‘What is What is impossible that I am impossible that I am ggoinoingg to do todato do today?’”y?’” —Daniel Lamarre,

president, Cirque du Soleil

EXCELLENCE. EXCELLENCE. NO EXCUSES.NO EXCUSES.

A store isA store is a store is a store is a store is a a store is a

storestore … …

WallopWal*Mart1WallopWal*Mart16*6*

*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16

**Niche-aimed.Niche-aimed. (Never, ever “all things for all people,” a “mini- (Never, ever “all things for all people,” a “mini-Wal*Mart.)Wal*Mart.)

**Never attack the monsters head on!Never attack the monsters head on! (Instead steal niche (Instead steal niche business and lukewarm customers.)business and lukewarm customers.)

**““DramaticallDramatically y DifferentDifferent”” (La Difference ... within our community, (La Difference ... within our community,

our industry regionally, etc … is as obvious as the end of one’s nose!) our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)

**Compete on value/experience/intimacy, not price.Compete on value/experience/intimacy, not price. (You (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)

**Emotional bond with Clients, Vendors.Emotional bond with Clients, Vendors. (BEAT THE BIGGIES (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)ON EMOTION/CONNECTION!!)

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-

Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive

looking in the rearview mirror. The thinThe thingg that all that all these companies have in these companies have in common is that thecommon is that theyy have have nothinnothingg in common in common.. They are outliers.

They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this:

The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do

it.”

—Seth Godin, Fast Company


**Hands-on, emotional leadership.Hands-on, emotional leadership. (“We are a great & (“We are a great & cool & intimate & joyful & dramatically different team working to cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible transform our Clients lives via Consistently Incredible Experiences!”)Experiences!”)

**A community star!A community star! (“Sell” local-ness per se. Sell the hell (“Sell” local-ness per se. Sell the hell out of it!)out of it!)

**An incredible experience, from the first to last An incredible experience, from the first to last moment—and then in the follow-up!moment—and then in the follow-up! (“These guys (“These guys are cool! They ‘get’ me! They love me!”)are cool! They ‘get’ me! They love me!”)

**DESIGN DRIVEN!DESIGN DRIVEN! (“Design” is a premier weapon-in- (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the pursuit-of-the sublime for small-ish enterprises, including the professional services.)professional services.)


**Employer of choice.Employer of choice. (A very cool, well-paid (A very cool, well-paid place to work/learning and growth experience in at place to work/learning and growth experience in at least the short term … marked by notably progressive least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)policies.) (THIS IS EMINENTLY DO-ABLE!!)

**Sophisticated use of information Sophisticated use of information technologytechnology. (Small-“ish” is no excuse for “small . (Small-“ish” is no excuse for “small aims”/execution in IS/IT!)aims”/execution in IS/IT!)

**Web-power!Web-power! (The Web can make very small very (The Web can make very small very big … if the product-service is super-cool and one big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.)purposefully masters buzz/viral marketing.)

**Innovative!Innovative! (Must keep renewing and expanding (Must keep renewing and expanding and revising and re-imagining “the promise” to and revising and re-imagining “the promise” to employees, the customer, the community.)employees, the customer, the community.)


**Brand-Lovemark* Brand-Lovemark* (*Kevin Roberts)(*Kevin Roberts) Maniacs Maniacs! ! (“Branding” is not just for big folks with big budgets. And modest (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”)niche “lovemark.”)

**Focus on women-as-clients.Focus on women-as-clients. (Most don’t. How stupid.) (Most don’t. How stupid.)

**Excellence!Excellence! (A small player … per me … (A small player … per me …

has no right or reason to exist unless they are in Relentless has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen client experience at a time!—to beat the Big Guys in your chosen niche!)niche!)

tom peters:tom peters: what what I’ve Learned I’ve Learned about “Small about “Small

Business”Business”

Passion for PRODUCT.Passion for PRODUCT.OBSESSION With ProductOBSESSION With Product..

LOVE LOVE The Product.The Product.Aim To Be Aim To Be “ONLY ONES WHO DO WHAT WE DO.”“ONLY ONES WHO DO WHAT WE DO.”

Keep Keep ADDIN’ADDIN’ Stuff. Stuff.Invest “UNWISELY” in R&D.Invest “UNWISELY” in R&D.

Reside Permanently In The Reside Permanently In The DISCOMFORTDISCOMFORT Zone. Zone.“Unhealthy” “Unhealthy” PARANOIA PARANOIA Is A Good Thing.Is A Good Thing.

Add Clients ThatAdd Clients That PUSH-PULL. PUSH-PULL.SELL.SELL. SELL. SELL. SELL.SELL. SELL. SELL.

Go For Broke: Go For Broke: CUSTOMER CONTACT PEOPLE.CUSTOMER CONTACT PEOPLE.PERFECTION:PERFECTION: Customer Contact People. Customer Contact People.

Hire for Hire for ATTITUDE.ATTITUDE.INVITE INVITE On An Adventure.On An Adventure. GREATGREAT CFO/Biz Guy-Gal. CFO/Biz Guy-Gal. NASTYNASTY CFO/Biz Guy-Gal. CFO/Biz Guy-Gal.

QUADRANGULAR LEADERSHIP:QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic- Visionary-Talent Fanatic-Project Manager-I.P.M.Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)(I.P.M. = Inspired Profit Mechanic)

Seminars + Travel: 65%Seminars + Travel: 65%Research & Writing: Research & Writing: 40-50%40-50%**

Admin/“Stuff”: 15%Admin/“Stuff”: 15%

*Greater than 100%; considerable research-writing is performed on the road

GREATGREAT Logo. Logo.DESIGN!DESIGN!

“OVERDO”“OVERDO” Marketing Materials. Marketing Materials.WOMENWOMEN Roar. Roar. WOMENWOMEN Rule. Rule. WOMENWOMEN Buy. Buy.

Diversity = Diversity = $$$$$$$$$$$$Be Be RELENTLESS.RELENTLESS. Cut And Cut And RUN.RUN.

Product Includes-Features theProduct Includes-Features the PACKAGING. PACKAGING.Define YourDefine Your DRAMATIC DIFFERENCE DRAMATIC DIFFERENCE (R.P.O.V.8)(R.P.O.V.8)

Best Best STORYSTORY Wins. Wins.DRESSDRESS For Success. For Success.

First Goal: First Goal: AMUSEAMUSE Yourself. Yourself.Know Know YOURSELF.YOURSELF.

DON’TDON’T Do Stuff You Hate. Do Stuff You Hate. “Over-invest” In “Over-invest” In RELATIONSHIPS.RELATIONSHIPS.

(R.O.I.R.: Return On Investment in Relationships)(R.O.I.R.: Return On Investment in Relationships)

SYSTEMATICALLYSYSTEMATICALLY “Manage” Relationships. “Manage” Relationships.“Work” The “Work” The SUPPORT PEOPLESUPPORT PEOPLE In Client Orgs. In Client Orgs.

BLOG BLOG As If Your Life Depended On It.As If Your Life Depended On It.SOPHISTICATEDSOPHISTICATED Use Of Infotech. Use Of Infotech.

RESPONSERESPONSE To Problems. To Problems.Make ’Em Make ’Em PAY.PAY.

CLOSE CLOSE The Sale.The Sale. Invest Invest BIGTIMEBIGTIME In PR. In PR.

Media Media FRIENDLY.FRIENDLY.Live-To-Live-To-SCHMOOZE.SCHMOOZE.

Fun/Laughter =Fun/Laughter = $$$$ $$$$ MBWA:MBWA: Stay In Touch. Stay In Touch.

“You Must Be The Change You Wish“You Must Be The Change You Wish To See In The World”/ To See In The World”/GANDHIGANDHI

5K For 5K For 5M.5M.YourYour CALENDAR CALENDAR Never Lies.Never Lies.

OUT:OUT: Pastels.Pastels. IN:IN: TTeecchhnniiccoolloorr

JUST SAY “NO” TO C.E.O.:JUST SAY “NO” TO C.E.O.: CIOCIO/Chief Innovation /Chief Innovation Officer. Officer. CSOCSO/Chief Sales Officer. /Chief Sales Officer. CWOCWO//

Chief Wow OfficerChief Wow Officer

EXCELLENCEEXCELLENCE Is Very Cool.Is Very Cool. “MICRO-MANAGE”“MICRO-MANAGE” Your Reputation. Your Reputation.Wear Your Integrity On Your Wear Your Integrity On Your SLEEVE.SLEEVE.

KEEPKEEP Your Promises. Your Promises.EXECUTIONEXECUTION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

“A Man Without A Smiling Face“A Man Without A Smiling Face MUST NOT MUST NOT Open His Shop.”Open His Shop.”

RECOGNITION! RECOGNITION! Work Work HARD,HARD, Not Smart. Not Smart.

“Insanely Great.” “Insanely Great.” THE STANDARD.THE STANDARD.

““A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

Tom/2006/Q97-Q100Study more.Renew more.Tailor more.Offer more.Listen more.Market more.Practice more.

Challenge more.Socialize more.

Smile more.Smile more.Follow-up more.

Plan execution more.Cost control more.

The Fab Five: What Every Small Biz Needs

Success Success == DDMMPR/ DDMMPR/"D-squared, M-squared, PR”"D-squared, M-squared, PR”

== DDramramDDiff iff ++ MMoney-Financial oney-Financial Acumen Acumen ++ Good “ Good “MMarketing” arketing” Instincts Instincts ++ Stellar Stellar PPeople eople ++

RResilienceesilience

Hmmm …Hmmm …

Bacteria. Bacteria. (“Left tail” limits.)(“Left tail” limits.)

Productivity of small.Productivity of small.Failure rate of Big Mergers.Failure rate of Big Mergers.

Failure rate of Big Companies.Failure rate of Big Companies.Terrorists.Terrorists.

Galbraith vs Hayek.Galbraith vs Hayek.

Productivity Pandemic

IMAOA: Institute of Modest Advances in

(Many, Many) Ordinary Activities

“While many people big oil finds with big companies, over the years

about 80 percent of the oil found in the United States has been

brought in by wildcatters such as Mr Findley, says Larry Nation,

spokesman for the American Association of Petroleum

Geologists.” —WSJ, “Wildcat Producer Sparks Oil

Boom in Montana,” 0405.2006

A Few Biases You Should Know AboutA Few Biases You Should Know About**I am I am notnot a macro-economist. a macro-economist.**I am wholly biased by 30 years (1970-2000) in I am wholly biased by 30 years (1970-2000) in Silicon Silicon ValleyValley..**I would rather work forI would rather work for eeBayBay than BankAmerica. than BankAmerica.**I believe that the Giant Merger Game is the single greatest I believe that the Giant Merger Game is the single greatest waste of energy in the world of business. waste of energy in the world of business.**Economies of scale are wildly over-rated.Economies of scale are wildly over-rated.**I find the entire notion of “career” to be disturbing and a little silly.I find the entire notion of “career” to be disturbing and a little silly.**I find the notion of “built to last” hilarious.I find the notion of “built to last” hilarious.**Between 1965 and 1980 I turned 179.9 degrees from “Mr BigBetween 1965 and 1980 I turned 179.9 degrees from “Mr Big Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you, Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you, Frank Perdue.) Frank Perdue.)**Joseph Schumpeter (“Joseph Schumpeter (“gales of creative destructiongales of creative destruction”) and F.A. Hayek ”) and F.A. Hayek are my economist “gods”; JK Galbraith is my b are my economist “gods”; JK Galbraith is my bêête noir.te noir.**“Innovation” is a wonderfully “Innovation” is a wonderfully messymessy & & chaoticchaotic process—not process—not amenable to “strategic plans.” amenable to “strategic plans.”*I believe in Luck. (*I believe in Luck. (Fooled by RandomnessFooled by Randomness—best book—best book I’ve ever read.) I’ve ever read.)

Small Giants: Small Giants: Companies That Companies That

Choose To Be Choose To Be Great Instead Of Great Instead Of

BigBig —by Bo Burlingham

Small Giants/Bo Burlingham

"First, I could see that, unlike most entrepreneurs, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full their founders and leaders had recognized the full range of choices they had about the type of company range of choices they had about the type of company they would create."they would create."

"Second, the leaders had the leaders had overcome the enormous overcome the enormous pressures on successful companies to take paths they pressures on successful companies to take paths they had not chosenhad not chosen and did not necessarily want to and did not necessarily want to follow." follow."

"Third, each company had an each company had an extraordinarily intimate extraordinarily intimate relationship with the local city, town, or countyrelationship with the local city, town, or county in in which it did businesswhich it did business——a relationship that went well a relationship that went well beyond the usual concept of ‘giving back.'" beyond the usual concept of ‘giving back.'"

"Fourth, they cultivated they cultivated exceptionally intimate exceptionally intimate relationships with customers and suppliersrelationships with customers and suppliers, based on , based on personal contact, one-on-one interaction, and mutual personal contact, one-on-one interaction, and mutual commitment to delivering on promises." commitment to delivering on promises."

Small Giants/Bo Burlingham

"Fifth, the companies also had what struck me as the companies also had what struck me as unusually unusually intimate workplacesintimate workplaces." ."

"Sixth, I was impressed by the variety of corporate I was impressed by the variety of corporate structures and modes of governance that these structures and modes of governance that these companies had come up with." companies had come up with."

"Finally, I noticed the I noticed the passionpassion that the leaders that the leaders brought to what the company did. brought to what the company did. They loved the They loved the subject mattersubject matter, whether it be music, safety lighting, , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."records storage, construction, dining, or fashion."

“We share the Zingerman’s We share the Zingerman’s experience selling food that experience selling food that

makes you happy, giving makes you happy, giving service that makes you smile—service that makes you smile—

in passionate pursuit of our in passionate pursuit of our mission, showing love and mission, showing love and caring in all our actions to caring in all our actions to enrich as many lives as we enrich as many lives as we

possibly can.”possibly can.” ——Zingerman’s Guide to Giving Great Service/

Ari Weinzweig/Ann Arbor MI

The Small*Mart The Small*Mart Revolution: How Revolution: How Local Businesses Local Businesses Are Beating Local Are Beating Local

CompetitionCompetition —Michael Shuman

I [“Bacteria Man”] HEREBY PLEDGE:

When asked, “What are some examples of companies stepping up to today’s

challenges?” … I will … NEVER NEVER AGAINAGAIN … offer an example of a Giant Company; instead I’ll refer to

Cirque du Soleil, Donnelly’s Weather Strip Service, 3K tanning salons, 10.6M

women-owned businesses (or the typically/95+% female recipients of

micro-lending) …*

*There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”

Q: Why isn’t the mainstreamWhy isn’t the mainstream business press interested business press interested in the “missing 90%” of in the “missing 90%” of the Economy the Economy??

A(?): (1) Ad revenue. (1) Ad revenue. (2) Hard work. (2) Hard work.

Grameen Bank/Mohammed YunusGrameen Bank/Mohammed Yunus

Small can be beautiful & powerful!Small can be beautiful & powerful!People first!People first!Trust!Trust!Women rule!!!!!!!!Women rule!!!!!!!!Giant forests from tiny seedlings!Giant forests from tiny seedlings!Self reliance!Self reliance!Community based!Community based!Self/Small group management!Self/Small group management!Banish the bureaucrats!Banish the bureaucrats!Keep it simple, stupid!Keep it simple, stupid!Hands on!Hands on!Etc.Etc.Etc.Etc.

Stephen Jay Gould:

Bacteria rule! Bacteria rule! Sizeable casesSizeable cases

[e.g. humans] are virtually are virtually irrelevant irrelevant anomalies.anomalies.


#8E#8E


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.

DREAM IT.DREAM IT.

DREAMDREAM:: “A dream is a A dream is a complete moment in the life complete moment in the life

of a client. Important of a client. Important experiences that tempt the experiences that tempt the client to commit substantial client to commit substantial resources. The essence of resources. The essence of

the desires of the consumer. the desires of the consumer. The opportunity to help The opportunity to help

clients become what they clients become what they want to be.”want to be.”

—Gian Luigi Longinotti-Buitoni

The Marketing of Dreams (Dreamketing)

DreamketingDreamketing:: Touching the clients’ Touching the clients’ dreams.dreams.DreamketingDreamketing:: The art of telling storiesThe art of telling stories and entertaining.and entertaining.DreamketingDreamketing: : Promote the dream,Promote the dream, not the product. not the product.DreamketingDreamketing:: Build the brand aroundBuild the brand around the main dream.the main dream.DreamketingDreamketing:: Build the “buzz,” theBuild the “buzz,” the “hype,” the “cult.”“hype,” the “cult.”

Source: Gian Luigi Longinotti-Buitoni

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We

convert ‘needs’ into ‘dreams.’ Sales are the

inevitable result.” — Judy George,

Domain Home Fashions

StarbucksStarbucks = = ShaShapperer ofof CultureCulture:: “At our core, “At our core,

we’re a coffee company, we’re a coffee company, but the opportunity we but the opportunity we

have to extend the brand is have to extend the brand is

beyond coffee; beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

“No longer are we only an

insurance provider. Today, Today, we also offer our we also offer our

customers the products customers the products and services that help and services that help

them achieve their them achieve their

dreamsdreams —whether it’s financial security, buying a car,

paying for home repairs, or even taking a dream vacation.” —Martin

Feinstein, CEO, Farmers Group

Six Market Profiles

1. Adventures for Sale1. Adventures for Sale2. The Market for Togetherness,2. The Market for Togetherness, Friendship and Love Friendship and Love3. The Market for Care3. The Market for Care4. The Who-Am-I Market4. The Who-Am-I Market5. The Market for Peace of Mind5. The Market for Peace of Mind6. The Market for Convictions6. The Market for Convictions

Rolf Jensen/The Dream Society: How the Coming Shift from

Information to Imagination Will Transform Your Business

Six Market Profiles

1. Adventures for Sale/ IBM-UPSIBM-UPS2. The Market for Togetherness, Friendship and Love/ IBM-UPSIBM-UPS3. The Market for Care/ IBM-UPSIBM-UPS4. The Who-Am-I Market/ IBM-UPSIBM-UPS5. The Market for Peace of Mind/ IBM-UPSIBM-UPS6. The Market for Convictions/ IBM-UPSIBM-UPS

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


UpUp


The Value-added Ladder/ EMOTIONEMOTION

Dreams Come TrueDreams Come TrueSpellbinding Experiences Gamechanging Solutions

ServicesGoods

Raw Materials

The (NEW) Value-added Ladder

Dreams Come TrueDreams Come TrueSpellbinding Experiences Spellbinding Experiences Gamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials

CCDMDM*

*Chief Dream Merchant

““Dreams Come Dreams Come True”:True”:

IBMIBM

““Dreams Come True”:Dreams Come True”:

IBMIBMUPSUPS

“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 facinWe stand facingg the fifth kind of societthe fifth kind of societyy: : the Dream Societthe Dream Society.y. … 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


#8F#8F


VALUE-ADDED LADDER IV.VALUE-ADDED LADDER IV.

LOVE IT.LOVE IT.

““Brands Brands have run out have run out

of juice. of juice. They’re They’re

deaddead.”.” —Kevin Roberts/Saatchi &

Saatchi

Kevin Roberts:

LovemarLovemar

ksks!!

Brand …………………………………………………. Lovemark

Recognized by consumers ………………. Loved by PeopleGeneric ………………………………………………… PersonalPresents a narrative ………………….. Creates a Love storyThe promise of quality ……………… A touch of SensualitySymbolic ………………………………………………….. IconicDefined ………………………………………………….. InfusedStatement ………………………………………………….. StoryDefined attributes ……………………... Wrapped in MysteryWrapped in MysteryValues ………………………………………………………. SpiritProfessional …………………………... Passionately CreativeAdvertising agency ………………………….. Ideas company

Source: Kevin Roberts, Lovemarks

“When we were working through the essentials of

a Lovemark,

MMyystersteryy was always at the top of the

list.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

““Lovemarks are Lovemarks are owned by the owned by the people who people who

love them.”love them.” —

Lovemarks: The Future Beyond Brands, Kevin Roberts

Tattoo BrandTattoo Brand: What % of users would tattoo the brand name on their

body?

Top 10 “Tattoo Brands”*

Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8

Coke …. 7.7Coke …. 7.7Google .... 6.6Google .... 6.6Pepsi .... 6.1Pepsi .... 6.1Rolex …. 5.6Rolex …. 5.6Nike …. 4.6Nike …. 4.6

Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6

Nintendo …. 1.5Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

Top 10 “Tattoo Brands”*

Harley .… 18.9%Disney .... 14.8

Coke …. 7.7Google .... 6.6Pepsi .... 6.1Rolex …. 5.6

Your name here … ??Your name here … ??Nike …. 4.6

Adidas …. 3.1Absolut …. 2.6

Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom


UpUp


The Value-added Ladder/ ECSTASYECSTASY

LovemarkLovemark Dreams Come True

Spellbinding ExperiencesGamechanging Solutions

ServicesGoods

Raw Materials

CCLL OO*

*Chief Lovemark Officer

Damn it …Damn it …

Lovemark?!Lovemark?! IBMIBMUPSUPSPSFPSF

Logistics “Department”Logistics “Department”HR “Department”HR “Department”


UpUp


Ladder.2006: 4 of Ladder.2006: 4 of 7!7!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials


#8G#8G


SOUL I.SOUL I.THE STORY.THE STORY.

““StorytellinStorytelling g

is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Best Best story story wins!wins!

MarketMarket Power = Power =

StoryStory Power Power

CCSTSTOO*

*Chief Storytelling Officer

“We are in the twilight of a society based on data. As information and intelligence become the domain of

computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from

our purchasing decisions to how we work with others.

ComComppanies will thrive anies will thrive on the basis of their on the basis of their stories and mstories and myythsths..

Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen

Institute for Future Studies


#8H#8H


SOUL II.SOUL II.DESIGN.DESIGN.

Franchise Lost!

TP: “How many of you [600] really

cravecrave a new Chevy?”

NYC/IIR/061205

All Equal Except …

“At Sony we assume that all products of our competitors

have basically the same technology, price, performance

and features. DesiDesiggn is the n is the onlonlyy thin thingg that that

differentiates one differentiates one pproduct from another roduct from another in the marketin the marketpplacelace.”.” —

Norio Ohga

“Design is

treated like treated like a religiona religion at

BMW.” —Fortune

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

most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning

of design. Design is the Design is the fundamentalfundamental soulsoul

of a man-made of a man-made creation.”creation.” —Steve Jobs

“With its carefully conceived mix of colors and textures,

aromas and music, StarbucksStarbucks 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 … the

aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the quality of enhance the quality of everything the customers see, everything the customers see, touch, hear, smell or taste,’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

Marketing “Magic”*

The “Missing The “Missing 95%”:95%”:

The Unconscious! The Unconscious!

*E.g.: ZMET/Zaltman Metaphor Evaluation Technique

Westin’s …Westin’s …

HeavenlHeavenly Bedy Bed

DHLDHL

CCDDOO**Chief Design Officer

Hard is soft.Hard is soft.Soft is hard.Soft is hard.

“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the

fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a

whole new relational externality has come into being—an entity which is more than the sum of the fish plus the

fisherman. The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a

laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines

and write the truth. There you have recorded a reality which

cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what

you are doing. The man with this pickled fish has set down one truth and recorded in his experience many lies.

The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

THE THE DESIGN49DESIGN49


SYSTEMS. SYSTEMS. DESIGN. DESIGN. K.I.S.S.K.I.S.S.

“One bank is currently claiming to …

‘leverage its global footprint’ to

provide effective financial solutions

for its customers by providing a

gateway to diverse markets.”

—Charles Handy

“I assume that it is just saying that it is

there to ‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.”

—Charles Handy

““Between the local Between the local people and the top [of people and the top [of

FEMA] seem to be FEMA] seem to be about seven or eight about seven or eight layers of people who layers of people who

need to get a life.”need to get a life.” —Mayor Bill

White, Houston

450/8450/8

Grunge Removal 101

Ellie Ellie MaeMae

"A business unit strategy should be less than fifty pages

long and should be easy to understand. Its essence should Its essence should be describable in be describable in oneone p paaggee ... If ... If

you can't describe your you can't describe your strategy in strategy in twenttwenty y minutesminutes, ,

simplsimply and in py and in plain lanlain langguauaggee, , you haven't got a plan.”you haven't got a plan.” —Larry

Bossidy

““Seek honest, minimalist management. Seek honest, minimalist management. Look for companies run by a team that Look for companies run by a team that explains things clearly and briefly. … explains things clearly and briefly. …

You can tell a lot about the firm by You can tell a lot about the firm by

reading an annual report or two. reading an annual report or two. If If management can’t explain the management can’t explain the business in business in pplain English, move lain English, move

on to another firmon to another firm.. If you see If you see phrases like ‘creating knowledge-based phrases like ‘creating knowledge-based value in emerging markets’ … someone value in emerging markets’ … someone is trying to pull the wool over your eyes, is trying to pull the wool over your eyes, you lazy Fool. Run.” you lazy Fool. Run.” —Seth Jayson, “Stocks for the

Lazy Investor,” The Motley Fool

First Steps: “Beauty Contest”!

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

2.2. Rate the selected doc on a scale of 1 to Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions:10 = Work of Art] on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

“I wanted GE to operate I wanted GE to operate with the speed, informality, with the speed, informality,

and open communication and open communication of a corner store. Corner of a corner store. Corner

stores often have strategy stores often have strategy right. With their limited right. With their limited resources, they have to resources, they have to

rely with laser-like focus on rely with laser-like focus on doing one thing very well.”doing one thing very well.”

—Jack Welch/ Fortune/04.05

Lee’s Rule: Run Run It off a It off a

Blackberry!Blackberry!


#8I#8I

EXCELLENCE.EXCELLENCE.NEW VALUE NEW VALUE EQUATION.EQUATION.

NEW “C-levels”. NEW “C-levels”.

CCRROO*

*Chief RevenueRevenue Officer

CCXXOO**Chief eeXXperience perience Officer

CCDMDM*

*Chief DreamDream Merchant

CCFFO*O*

*Chief Festivals Officer

CCPIPI***Chief Portal Impresario

CCCCO*O*

*Chief Conversations Officer

CCLL OO*

*Chief LovemarkLovemark Officer

CCSSO*O*

*Chief Seduction Officer

CCSTSTOO*

*Chief StorytellingStorytelling Officer

CCDDOO**Chief DesignDesign Officer

CCtataOO*

*Chief talent acquisitiontalent acquisition Officer

CCfafaOO*

*Chief freaks acquisitionfreaks acquisition Officer

CCQQOO*

*Chief quest-meisterquest-meister

CCTTOO**Chief ThrillsThrills Officer

CCTRTROO**Chief TranscendenceTranscendence Officer

CCWWOO**Chief*Chief WOWWOW OfficerOfficer

CC!!OO**Chief ! Officer


WHAT MATTERS.WHAT MATTERS.

““What Isn’t What Isn’t Matter Is Matter Is

What What Matters”Matters”

—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

VA “Teaching Moment”

““Andy pointed to Andy pointed to a molding, about a molding, about halfway up the halfway up the

wall …”wall …”

The The BootBoot … and … and TimberlandTimberland

The The TomatoTomato// FarmerFarmer … and … and

Campbell’sCampbell’s


#9#9

To The Mat: The ““5 Damn Its5 Damn Its””

Women.Women.PSF.PSF.

Brand you.Brand you.R.f.a.R.f.a.

EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.


ALWAYS. ALWAYS. WOMEN.WOMEN.

BOOMERS.BOOMERS.GEEZERS. GEEZERS.

OPPORTUNITY.OPPORTUNITY.$$$$$$$$$$$.$$$$$$$$$$$.ENORMOUS.ENORMOUS.

Tom Peters/11.02.2006/Version.153Tom Peters/11.02.2006/Version.153

not.not.Yet.Yet.

Done.Done.

women.women.BOOMERSBOOMERS

..GEEZERS.GEEZERS.

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

Amazon Reviewer: “‘Trends’ [TP-MB book] is old news!” (1 of 5 stars)

TP: “Repeating it doesn’t make it

‘old.’ It ain’t old if it It ain’t old if it hasn’t been hasn’t been implementedimplemented!”!”

What the hell What the hell do I have to do I have to do to make do to make my point?my point?

Tom Peters/10.10.2006

The Copenhagen (Self) Pact re “This The Copenhagen (Self) Pact re “This Topic”:Topic”:

*Early!*Early!*Loud!*Loud!*Repetitive!*Repetitive!*Aggressive!*Aggressive!**UnUnfriendly!/rude!/friendly!/rude!/ insulting! insulting!


S.S.GEEZERSGEEZERS

..

women.women.

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

Women’sWomen’s Trifecta+ Trifecta+

**BuyBuy * *WealthWealth

**LeadLead

++ECLIPSE OF ECLIPSE OF MALESMALES

(Old/Retire; Young/Poorly educated)

Women’s Trifecta+Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*Lead/*Lead/ betterbetter +Eclipse of +Eclipse of males/males/whoopswhoops (Retire-old/Poorly educated-young)

1.1. Women’s CONSUMER GOODS Women’s CONSUMER GOODS purchasespurchases. . 2.2. Women’s COMMERCIAL GOODS Women’s COMMERCIAL GOODS purchasespurchases..3.3. WOMEN WOMEN AREARE THE MARKET. THE MARKET. NotNot an an “initiative.” “initiative.” 4.4. WomenWomen--ownedowned BUSINESSES. BUSINESSES. (absolute #s, (absolute #s, acceleration, relative growth.) acceleration, relative growth.)

5.5. Women’s “brand” of Women’s “brand” of LEADERSHIP LEADERSHIP SKILLS.SKILLS.6.6. women’s strengths women’s strengths matchmatch needs of the needs of the newnew “value-added ladder.” “value-added ladder.”7.7. Women’s DRAMATICALLY INCREASING- Women’s DRAMATICALLY INCREASING-commandingcommanding WEALTHWEALTH—absolute, relative. —absolute, relative. (Jobs. Longevity.(Jobs. Longevity. Education. Entrepreneurial. Decline of BOYS. Retirement of Education. Entrepreneurial. Decline of BOYS. Retirement of MEN/Senior MEN.) MEN/Senior MEN.)

8.8. DEMOGRAPHICDEMOGRAPHIC TSUNAMITSUNAMI. WOMEN. Women . WOMEN. Women as as solo HEADs-OF-HOUSEHOLD. THE WOMaN- solo HEADs-OF-HOUSEHOLD. THE WOMaN- BOOMER-GEEZER. LOoooNG-TERM BOOMER-GEEZER. LOoooNG-TERM PHENOMENON. PHENOMENON. Global phenomenon. Global phenomenon.9.9. SPEEDSPEED of “change.” mother of all of “change.” mother of all ““megatrendsmegatrends.”.”

1. 1. ParticipationParticipation rate/2 of 3 new jobs, lastrate/2 of 3 new jobs, last 30 years. 30 years.2. Male workforce2. Male workforce departuresdepartures/SENIOR male/SENIOR male workforce departures. workforce departures.3. 3. ShrinkingShrinking pay gap/same jobs.pay gap/same jobs.4. More senior positions. Greater decision-4. More senior positions. Greater decisionmaking/expenditure/org design making/expenditure/org design authorityauthority.. More line jobs. More line jobs.5. Female 5. Female solosolo head-of-household growing. head-of-household growing.6. 6. LongevityLongevity..7. 7. EducationEducation..8. More effective 8. More effective moneymoney managementmanagement..

Not. Yet. Done.*Not. Yet. Done.*Loyalty programs: M F “Difference” = Loyalty programs: M F “Difference” =

Yawning gap (173+ degrees)Yawning gap (173+ degrees)Forced to do it: e.g., a division aimed at Boomer Women … Exclusively.Forced to do it: e.g., a division aimed at Boomer Women … Exclusively.

Just say no to “trickle up”: Why have the 5% chase the 95%?)Just say no to “trickle up”: Why have the 5% chase the 95%?)

Men think they’re doing their share (helping, sure, but the buck stops with Men think they’re doing their share (helping, sure, but the buck stops with her); busy, busy, busy—think Jim’s Group)her); busy, busy, busy—think Jim’s Group)

New forms of living together, playing together as aging proceeds New forms of living together, playing together as aging proceeds (“commune”, Beacon Hill Assn, telemedicine, etc., etc., etc.)(“commune”, Beacon Hill Assn, telemedicine, etc., etc., etc.)

“Grab ’em early & keep ’em”: Total Unmitigated Crap“Grab ’em early & keep ’em”: Total Unmitigated Crap (TP: 100% brand switch. 100%.) (TP: 100% brand switch. 100%.)

“They didn’t take it seriously” —German bank exec, Bonn, F“They didn’t take it seriously” —German bank exec, Bonn, F

This is not a $%^&ing “program.” This is “NEW Life 101.” ThisThis is not a $%^&ing “program.” This is “NEW Life 101.” This is Soooo Big it Staggers the Imagination. (Will be paramount is Soooo Big it Staggers the Imagination. (Will be paramount

“trend” for 20 years.) “trend” for 20 years.)

*The Copenhagen Pact*The Copenhagen Pact


S.S.GEEZERSGEEZERS

..

Boomers.Boomers. geezers.geezers.

not.not.Yet.Yet.

Done.Done.

Boomers’-Geezers’ TrifectaBoomers’-Geezers’ Trifecta


*time left/ *time left/ lotslots

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+


*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

Only Only 50% 50%

done!done!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

not.not.Yet.Yet.

Done.Done.

Just Say “No” (!):Just Say “No” (!):

Launch an

“Initiative.”

ObObjjectionsections

Don’t believe the DATADon’t believe the DATA

Don’t believe the ENORMITY of the opportunityDon’t believe the ENORMITY of the opportunity

Don’t believe the UBIQUITY of the opportunityDon’t believe the UBIQUITY of the opportunity

Think they “GET IT”Think they “GET IT”

See it as an “Initiative”See it as an “Initiative”

Flies in the face of CONVENTIONAL MARKETING WISDOMFlies in the face of CONVENTIONAL MARKETING WISDOM

Don’t see it as … THE ESSENCE OF STRATEGIC POSITIONINGDon’t see it as … THE ESSENCE OF STRATEGIC POSITIONING

Fail to understand-TAKE FULL ADVANTAGE “Everything must be Fail to understand-TAKE FULL ADVANTAGE “Everything must be changed” (It’s a “Culture” issue)changed” (It’s a “Culture” issue)

Look at it analytically; miss the need for OBSESSIONLook at it analytically; miss the need for OBSESSION

Subconsciously threatened!!??Occasion to make JOKESOccasion to make JOKES

You either believeYou either believe “all this.” “all this.”

Or don’t.Or don’t.** *No middle ground at the level of Extreme Commitment I’m

suggesting

Don’t Don’t “get it” “get it”

= = StupidStupid**

*and you are *and you are notnot stupid stupid

E-nor-mous E-nor-mous Strat-eg-ic Strat-eg-ic opp-or-tun-opp-or-tun-

ityity


#9A#9A


NEW MARKETS.NEW MARKETS.ENORMOUS. ENORMOUS.

OPPORTUNITIES.OPPORTUNITIES.


S.S.GEEZERSGEEZERS

..


OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

WOMEN.WOMEN.

““IdiotIdiot”” is too kind a word.

“That’s a very diverse* team.”

—Patrick Cescau, CEO, Unilever**

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 8585%% of Unilever’s

products are purchased by … women.

“That’s a

VERYVERY diverse team.”

—Patrick Cescau, CEO, Unilever* **

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 85% of Unilever’s products are purchased by … women.

“That’s a

VERYVERY sick

man.”

—Tom Peters

““IdiotIdiots”s” is too

kind a word.

????????

Weenie Weenie of the of the year, year,

2006 …2006 …

????????

6/46/444

PP&&GG


FOUND.FOUND.DUH.DUH.

“To be a leader in To be a leader in consumer products, consumer products, it’s critical to have it’s critical to have

leaders who leaders who represent the represent the population we population we

serveserve.”.” —Steve Reinemund/PepsiCo

Indra NooyiIndra Nooyi

A[nother] Delightful BlindingA[nother] Delightful Blinding Flash of the Obvious!* **Flash of the Obvious!* **

““P&G does more than half P&G does more than half its business outside the its business outside the

U.S.,U.S., so [CEO A.G.] Lafley has so [CEO A.G.] Lafley has recast his top executive recast his top executive group to be 50% non-group to be 50% non-American.” American.” ——FortuneFortune, 1218.06, 1218.06

*I’ll take it!*I’ll take it!**Women next? 85%? **Women next? 85%?

““A couple of years ago, the Los Angeles A couple of years ago, the Los Angeles division division [of John Laing Homes][of John Laing Homes] decided it was decided it was

going to become the king of Hispanic housing going to become the king of Hispanic housing [sarcasm], because our research shows [sarcasm], because our research shows

there’s a huge demand. They were right to there’s a huge demand. They were right to go after that market, but I looked around the go after that market, but I looked around the room, and it’s full of white guys. They were room, and it’s full of white guys. They were

telling us how much they know about telling us how much they know about Hispanic buyers, and they were making it up. Hispanic buyers, and they were making it up.

… We’re getting better now. … We’re getting better now. We hired two smart, young Hispanic We hired two smart, young Hispanic

managers. … We are working through a managers. … We are working through a partnership with [former HUD secretary] partnership with [former HUD secretary]

Henry Cisneros. We’re learning, but we have Henry Cisneros. We’re learning, but we have a long way to go.”a long way to go.” —Larry Webb—Larry Webb

““EXCELLENCE.” EXCELLENCE.”

AARGH.AARGH.

Good Thinking, Guys!

“Kodak Sharpens Digital Focus “Kodak Sharpens Digital Focus

On Its Best Customers:On Its Best Customers:

WomenWomen””

—Page 1 Headline/WSJ/0705


OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

WOMEN.WOMEN.

Just Say NoJust Say No.

MeMenn

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

““Women make Women make 80 percent80 percent of all of all buying decisions. They control buying decisions. They control $$7 trillion7 trillion in purchasing power. in purchasing power.

By 2010 they'll control more By 2010 they'll control more than than $$13 trillion13 trillion in private in private wealth. And that's just in wealth. And that's just in

America. Globally, women's America. Globally, women's soaring economic power is soaring economic power is

changing business foreverchanging business forever..””

—Fara Warner

?????????

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

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

Consumer Electronics … 51% Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)Cars … 68% (90%)AllAll consumerconsumer purchasespurchases … … 83%83%

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

Health Care … 80%Health Care … 80%

WomenWomenHousehold spending: 80%80%Investment decisions: 53%53%Home improvement purchase decisions: 80%80%New cars: 60%+60%+Computers: 60%60%Managers and professionals, overall: 51%51%New businesses started: 70%70%* (*Women-owned businesses as a share of all new businesses: Employee growth, 3X; Sales growth, 4X.)

Source: Marti Barletta, PrimeTime Women (2007)

USA/F.Stats: Short ’n (Very) Sweet

>50% of stock ownership, $13T total wealth (2X in 15 years)>50% of stock ownership, $13T total wealth (2X in 15 years)

>$7T consumer & biz spending (>50% GDP; > Japan GDP); >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) >80% consumer spdg (Consumer = 70% all spdg)

57% BA degrees (2002); = ed & social strata, no wage gap57% BA degrees (2002); = ed & social strata, no wage gap

60% Internet users; >50% primary users of60% Internet users; >50% primary users of electronic equipment electronic equipment

>50% biz trips>50% biz trips

WimBiz: Employees > F500; 10M+: 33% all US BizWimBiz: Employees > F500; 10M+: 33% all US Biz

Pay from 62% in 1980 to 80% today; equal if education,Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal social status, etc are equal

60% work; 46M (divorced, widowed, never married)60% work; 46M (divorced, widowed, never married)

Source: Fara Warner, The Power of the PurseThe Power of the Purse

Women > 50% of Household Income in >50% of Women > 50% of Household Income in >50% of households. In 48% of the 55% of households/married households. In 48% of the 55% of households/married

couples, women provide >50% of income. 27% of couples, women provide >50% of income. 27% of households are headed by a single female. 75% of married households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their female execs with the rank of VP or above out earn their

spouse. Women control 51% of private wealth in the U.S.; spouse. Women control 51% of private wealth in the U.S.; head 40% of households with >$600K assets; 47% of head 40% of households with >$600K assets; 47% of

market investors are women.market investors are women.

Major Credit Union: pre Y2K, modal customer was 53-year-Major Credit Union: pre Y2K, modal customer was 53-year-old family man; today, 46-year-old single working woman.old family man; today, 46-year-old single working woman.

Commercial: 51% purchasing managers are women.Commercial: 51% purchasing managers are women.

Women make >80% consumer purchases; businesswomen Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women: make >90% of household purchasing decisions. Women:

70% of travel decisions; purchase 57% of consumer 70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% electronics; write 80% of personal checks; purchase >50%

of cars (primary influence >80%).of cars (primary influence >80%).

Source: Don’t Think Pink: What Really Makes Women Buy—and How to Increase Your Share of This Crucial Market, Lisa Johnson & Andrea Learned

1970-19981970-1998

Men’s median income: +0.6%Men’s median income: +0.6%

Women’s median income: Women’s median income: + 63%+ 63%

Source: Martha Barletta, Marketing to Women

Commercial Purchasing Power

Purchasing mgrs. & agents: Purchasing mgrs. & agents: 51%51%HR: HR: >>50%>>50%

Admin officers: Admin officers: >50%>50%


Internet Internet users: users: 60%60%**

*“manage their lives and the lives of their families” —Kelley Mooney, president, Resource Interactive

Source: Fara Warner, The Power of the Purse

The “91% Factor”!The “91% Factor”!

More than More than 99 in in 1010 women women age 35 - 49 say theyage 35 - 49 say they

either either makemake or at least or at least eeqquallually y influenceinfluence their their household purchaseshousehold purchases of of homehome electronicselectronics..

Source: Andrea Learned, co-author, Source: Andrea Learned, co-author, Don’t Think PinkDon’t Think Pink

9191%% women: women:

ADVERTISERS ADVERTISERS “DON’T “DON’T

UNDERSTAND USUNDERSTAND US.” .” (58% “ANNOYED.”)(58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

““The The most significant most significant variablevariable in in everyevery sales sales

situation is the situation is the gendergender of of the buyer, and more the buyer, and more importantly, how the importantly, how the

salesperson salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

Thanks,Thanks,

MartiMarti BarlettaBarletta!!

The Perfect Answer

Jill and Jack buy slacks in black…

“She knows moreknows more about the [Volvo] than the salesmanman who greets

her at the door. But how is she treated? As if she has a low IQ low IQ , is

slightly hard of hearing hard of hearing , and really has no rightno right to be buying a luxury

car; and if she brought a male friend with her, odds are 10:1 that the

clueless salesperson spent most of his time speaking to him speaking to him .” —Selling to Men,

Selling to Women, Jeffery Tobias Halter

EVEolution:EVEolution: The Eight Truths The Eight Truths

of Marketing of Marketing to Women to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No.1

Connecting Your Connecting Your Female Consumers Female Consumers

to Each Other to Each Other Connects Them to Connects Them to

Your BrandYour Brand

“The ‘Connection Proclivity’ The ‘Connection Proclivity’ in women starts early. in women starts early. When asked, ‘How was When asked, ‘How was

school today?’ a girl usually school today?’ a girl usually tells her mother every tells her mother every

detail of what happened, detail of what happened, while a boy might grunt, while a boy might grunt,

‘Fine.’ ”‘Fine.’ ”

EVEolution

Week #8: Week #8: testosterone testosterone

time!time!**Louann Brizendine, Neuropsychiatrist, The Female Brain. Week

#8/Testosterone surge kills: communication cells; grows: sex & aggression cells. Also/E.g.: 10X to 20X, F eye contact/look for

emotional signals by 3 months. Later: F, more sentences that begin with “Let’s …”; more likely to take turns

““Women speak and hear a Women speak and hear a language of language of connectionconnection and and

intimacyintimacy,, and men speak and hear and men speak and hear a language of status and a language of status and

independence. Men communicate to independence. Men communicate to obtain obtain informationinformation, establish their , establish their statusstatus, and show , and show indeindeppendenceendence..

Women communicate to create Women communicate to create relationshirelationshippss, encourage , encourage

interactioninteraction, and exchange , and exchange feelinfeelinggss.” .”

—Judy Rosener, America’s Competitive Secret

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

Selling to men: The The TRANSACTION Model Model

Selling to Women: The The RELATIONAL Model Model

Source: Selling to Men, Selling to Women, Jeffery Tobias Halter

Editorial/MenEditorial/Men: : Tables, rankings.*Tables, rankings.*

Editorial/Editorial/WomenWomen: :

NarrativesNarratives that cohere.* that cohere.*

*Redwood (UK)

Purchasing Patterns

WomenWomen: Harder to convince; : Harder to convince; more loyal once convinced.more loyal once convinced.

MenMen: Snap decision; fickle.: Snap decision; fickle.


““The ‘Connection Proclivity’ The ‘Connection Proclivity’ in women starts early. in women starts early. When asked, ‘How was When asked, ‘How was

school today?’ a girl usually school today?’ a girl usually tells her mother every tells her mother every

detail of what happened, detail of what happened, while a boy might grunt, while a boy might grunt,

‘Fine.’ ”‘Fine.’ ”

EVEolution

““Women speak and hear a Women speak and hear a language of language of connectionconnection and and

intimacyintimacy,, and men speak and hear and men speak and hear a language of status and a language of status and

independence. Men communicate to independence. Men communicate to obtain obtain informationinformation, establish their , establish their statusstatus, and show , and show independenceindependence..

Women communicate to create Women communicate to create relationshipsrelationships, encourage , encourage

interactioninteraction, and exchange , and exchange feelingsfeelings.” .”

—Judy Rosener, America’s Competitive Secret

“A woman can effortlessly speak 6,000 to 8,000 words a day, use an additional

2,000-3,000 vocal sounds and 8,000-10,000 gestures and body signals. A

man utters 2,000-4,000 words, 1,000-2,000 vocal sounds and makes 2,000-

3,000 body language signals. In other In other words, women communicate words, women communicate

three times more than menthree times more than men.”.” —Barbara and Allan Pease (from Selling to Men, Selling to

Women, Jeffery Tobias Halter)

2.62.6 vs.vs.

2121

“Women come out betterWomen come out better on almost everon almost everyy count count as investorsas investors … They are less likely to hold a losing investment too

long, and less likely to wait too long to sell a winner; they’re also less likely to

put too much money into a single investment or to buy a reputedly hot

stock without doing sufficient research.”

Source: The Merrill report: “When It Comes to Investing, Gender A Strong Influence on Behavior.”/Atlantic

Discover, by accident, Discover, by accident, “blue ocean” “blue ocean” [women’s financial [women’s financial

needs]needs]!!

Ignore your Ignore your [Dean Witter][Dean Witter] boss! boss!

Sell 750,000 copies of Sell 750,000 copies of your latest book to Wells your latest book to Wells Fargo Home Mortgage!Fargo Home Mortgage!

Source: the David Bach story, includingSource: the David Bach story, including Smart Women Finish RichSmart Women Finish Rich, per , per IBDIBD (01.08.07) (01.08.07)

1. Men and women are different.1. Men and women are different.2. Very different.2. Very different.3. 3. VERY, VERY DIFFERENTVERY, VERY DIFFERENT..4. Women & Men have a-b-s-o-l-u-t-e-l-y4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. nothing in common.5. Women buy lotsa stuff.5. Women buy lotsa stuff.

6. 6. WOMEN BUY A-L-L THE WOMEN BUY A-L-L THE STUFFSTUFF..7. Women’s Market = Opportunity No. 1.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.8. Men are (STILL) in charge.9. 9. MEN ARE … TOTALLY, HOPELESSLYMEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. CLUELESS ABOUT WOMEN.

10. 10. Women’s Women’s Market = Market =

Opportunity Opportunity No. 1.No. 1.

P-l-e-a-s-e Read …

Fara WarnerFara Warner:: The Power of The Power of

the Pursethe Purse

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

Faith, Lys, Marti, Fara …

Targeting the New Targeting the New Professional Woman: Professional Woman:

How to Market and Sell How to Market and Sell to Today’s to Today’s 57 Million 57 Million

Working WomenWorking Women

—Gerry Myers

““Goldman Sachs in Goldman Sachs in TokyoTokyo has has developed an index of 115 developed an index of 115

companies poised to benefit from companies poised to benefit from women’s increased purchasing women’s increased purchasing

power;power; over the past over the past decade the value of decade the value of shares in Goldman’s shares in Goldman’s

basket has risen by 96%, basket has risen by 96%, against the Tokyo against the Tokyo

stockmarket’s stockmarket’s rise of 13%rise of 13%.”.” —Economist—Economist, April 15, April 15

Power of the Power of the Purse: McDonald’sPurse: McDonald’sDiscovers Women!Discovers Women!

12.2002: $-344M

*International*International*Build*Build*Men & Children*Men & Children

Source: Fara Warner, The Power of the Purse,“From Minority to Majority: McDonald’s Discoversthe Woman Inside the Mom”

“Mostly Moms”

““Women were either ignored Women were either ignored in favor of focusing on men—in favor of focusing on men—

generally considered the generally considered the industry’s most frequent industry’s most frequent

users and therefore its most users and therefore its most important consumers—or they important consumers—or they were cast in the role of moms were cast in the role of moms who were simply conduits to who were simply conduits to

their children.”their children.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers

the Woman Inside the Mom”

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

“Women [in women-only focus groups] told us that all moms are

women, but not all women are moms—so why weren’t

we trying to reach all women? We realized we

should be finding the woman inside the mom.” —Carol Koepke, marketing director (Fara Warner, The Power of

the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”)

““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of

‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important

children’s market to one in which children’s market to one in which women are the company’s women are the company’s

majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and

promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

New! New! New! New! New!New! New! New! New! New!

Women’s Women’s magazinesmagazines [“a medium

that McDonald’s had rarely used”]

Source: Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers

the Woman Inside the Mom”

Power of the Power of the Purse: BEST BUYPurse: BEST BUY

Discovers Women!Discovers Women!

““Best Buy Gets in Best Buy Gets in Touch With Its Touch With Its

Feminine Side: Chain Feminine Side: Chain wants to be much wants to be much more than a toy more than a toy

store for big boys.”store for big boys.” —headline, —headline, USA TodayUSA Today (12.21.06) (12.21.06)

““Instead of hitting high-tech hysteria at Best Instead of hitting high-tech hysteria at Best Buy this holiday season, shoppers may notice Buy this holiday season, shoppers may notice a softer, more personal atmosphere. Music is a softer, more personal atmosphere. Music is quieter. Lights are lower. Salespeople talk to quieter. Lights are lower. Salespeople talk to customers about their lifestyles, what they customers about their lifestyles, what they want the technology to do for them … and want the technology to do for them … and how they want it to fit into their homes, how they want it to fit into their homes,

offices, cars. … If you need more help, one of offices, cars. … If you need more help, one of thousands of its ‘Geek Squad’ techies will thousands of its ‘Geek Squad’ techies will

come to your home to hook stuff up.”come to your home to hook stuff up.”

——USA Today, USA Today, 12.21.06, 12.21.06, “Best Buy Gets in Touch With Its “Best Buy Gets in Touch With Its Feminine Side: Chain wants to be much more than a toy store Feminine Side: Chain wants to be much more than a toy store

for big boys.”for big boys.”

““We were a boys’ toy store designed for boys by We were a boys’ toy store designed for boys by boys.”boys.” —Julie Gilbert, VP, Best Buy

““It’s no longer the days of eight-track tapes and It’s no longer the days of eight-track tapes and big speakers with the big foam that smells. The big speakers with the big foam that smells. The

products we sell and the services we sell are about products we sell and the services we sell are about trends and fashion.”trends and fashion.” —Julie Gilbert

““Women couldn’t get anyone to help Women couldn’t get anyone to help them. They weren’t treated with them. They weren’t treated with

respect.”respect.” —Julie Gilbert

““We’re working with the Girl Scouts, withWe’re working with the Girl Scouts, with private female colleges and others to recruit private female colleges and others to recruit amazing women so we can delight our women amazing women so we can delight our women

customers.”customers.” —Julie Gilbert

—USA Today, 12.21.06, “Best Buy Gets in Touch With Its Feminine Side: “Best Buy Gets in Touch With Its Feminine Side: Chain wants to be much more than a toy store for big boys.”Chain wants to be much more than a toy store for big boys.”

““We’re working with the We’re working with the Girl Scouts, private female Girl Scouts, private female

colleges and others to colleges and others to recruit amazing womenrecruit amazing women so we can delight our so we can delight our women customers.”women customers.”

—Julie Gilbert, VP, Best Buy —Julie Gilbert, VP, Best Buy (USA Today(USA Today, 12.21.06), 12.21.06)

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.

WOMEN.WOMEN. BUSINESS. BUSINESS. OWNERS. OWNERS.

10.610.6

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 10.6 millionmillion ( (48%48% of all firms) of all firms)

Growth rate of Women-owned firms vs all firms:Growth rate of Women-owned firms vs all firms: 3X3X

Rate of jobs created by Women-owned firms vs all Rate of jobs created by Women-owned firms vs all firms:firms: 2X2X

Ratio of total payroll of Women-owned firms vs total Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:for Fortune500 firms: >1.0>1.0

Ratio of likelihood of Women-owned firms staying in Ratio of likelihood of Women-owned firms staying in business vs all firms:business vs all firms: >1.0>1.0

Growth rate of Women-owned companies with Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all revenues of >$1,000,000 and >100 employees vs all firms:firms: 2X2X

Source: Margaret Heffernan, How She Does It

9494%% of loans to of loans to

……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

PrimeTime Women: How to PrimeTime Women: How to Win the Hearts, Minds and Win the Hearts, Minds and

Business of Boomer Big Business of Boomer Big Spenders Spenders —Marti Barletta—Marti Barletta

How She Does It: How How She Does It: How Women Entrepreneurs Are Women Entrepreneurs Are

Changing the Rules of Changing the Rules of Business SuccessBusiness Success —Margaret —Margaret

HeffernanHeffernan


#9B#9B

WOMEN.WOMEN.

DOMINATE. DOMINATE. ECONOMIC. ECONOMIC. GROWTH.GROWTH.

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

““Economic Growth Economic Growth Is Driven by … Is Driven by …

WomenWomen..””

—Headline, EconomistEconomist, April 15, 2006, Leader, page 14

““Since Since 19701970, , women have women have

held held twotwo out of out of every every three three new new jobs created.”jobs created.” —FT,

10.03.2006

““ForForgget China, India and the et China, India and the Internet: Economic Growth Is Driven Internet: Economic Growth Is Driven

bbyy Women Women.”.” [Headline.] “Even today in the modern, developed world, surveys show that parents still prefer to have

a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their

parents’ old age. Yet it is time for parents to think again. Girls Girls may now be a better investment.”may now be a better investment.” “Girls get better grades in

school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot for the new jobs of the 21st century, in which brains count a lot

more than brawnmore than brawn.. … And women are more likely to provide sound advice on investing their parents’ nest egg—e.g.: surveys show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in

the last couple of decades. Those women have contributed more Those women have contributed more to global GDP growth than have either new technology or theto global GDP growth than have either new technology or the

new giants, India and China.”new giants, India and China.” Source: EconomistEconomist, April 15, Leader, page 14

Continuing on page 73: ““A Guide to Womenomics: A Guide to Womenomics: The Future of the World EconomThe Future of the World Economyy Lies Lies

IncreasinIncreasinggllyy in Female Hands in Female Hands.”.” (Headline.) More stats: Around the globe since 1980, women have filled “two

new jobs for everyone taken by a man.” “Women are becoming more important in the global marketplace not just

as workers, but also as consumers, entrepreneurs, managers, and investors.” Re consumption, Goldman Sachs in Tokyo has Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade women’s increased purchasing power; over the past decade the value of shares in “Goldman’s basket has risen by 96%, the value of shares in “Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%against the Tokyo stockmarket’s rise of 13%.”.” A couple of

final assertions: (1) It is now agreed that “the single best investment that can be made in the developing world” is educating girls. (2) Also,

surprisingly, nations with the highest female laborforce participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest

participation rates, such as Italy and Germany, have the lowest fertility rates.

Source: EconomistEconomist,, April 15, page 73

QQ:: No. 1 contributor toNo. 1 contributor to developing country developing country economic improvement? economic improvement?

AA:: More education for women.More education for women.

Source: Many* (*On a related note, eBay founder Pierre Omidyar Source: Many* (*On a related note, eBay founder Pierre Omidyar and his wife just gave $100M to Tufts—its biggest gift ever—to and his wife just gave $100M to Tufts—its biggest gift ever—to support micro-lending; women typically aresupport micro-lending; women typically arethe recipients of 90% of micro-loans because they usethe recipients of 90% of micro-loans because they usethe $$$ more productively than men.)the $$$ more productively than men.)

Repeat:Repeat: “Goldman Sachs in Tokyo “Goldman Sachs in Tokyo has developed an index of 115 has developed an index of 115 companies poised to benefit companies poised to benefit

from women’s increased from women’s increased purchasing power; purchasing power; over the past over the past

decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise

of 13%of 13%.”.” —Economist, April 15

Impact! Add It Up!

Primary markets/EverythingPrimary markets/Everything (“Men

buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.)

Greater global workforce Greater global workforce participation rateparticipation rate (“bigger contributor to GDP

growth than technology, China, India”—Economist)

Higher wagesHigher wages (more seniority, promotions—even if not

to CEO; greater pay equity—even if not equal)

Business “decision makers”Business “decision makers” (more

seniority, promotions—even if not to CEO)

Women-owned businessesWomen-owned businesses (answer to

the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

Not Just America …

“Boys Falling “Boys Falling SevenSeven Years Years Behind Girls Behind Girls

at GCSE Level”at GCSE Level” —headline, Weekly Telegraph, UK, 10.25.06

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all

levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The

phenomenon will only grow as girls prove to be more successful than boys in the school

system. For a number of observers, For a number of observers, we have already entered the age we have already entered the age of ‘womenomics,’ the economy as of ‘womenomics,’ the economy as

thought out and practiced by a thought out and practiced by a woman.”woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

New World, New “Girl Power”?New World, New “Girl Power”?“Not long ago I was talking with a group of girls at

Greenfield High, in northern New Jersey, about Mary Pipher’s bestselling book, Reviving Ophelia. … The girls’ reaction to Ophelia was one of confusion. They disagreed with the book’s premise—that girls are robbed of vitality and self-esteem as they enter adolescence. According to

Pipher, our sexist society causes girls ‘to stifle their creative spirit and natural impulses, which ultimately destroys their self-esteem.’ ‘Who are the girls in this

book?’ asked Sarah, a Greenfield sophomore. ‘I mean, I feel sorry for them, but they’re pretty much losers. We’re

not at all like them.’ From what I could see, she was right. The girls I met were vital. TheTheyy a appppeared eared moremore confident than manconfident than manyy of the bo of the boyys. Thes. Theyy had not had not

‘lost their voice.’ … The‘lost their voice.’ … Theyy neither feared neither feared comcomppetition from boetition from boyys nor the conses nor the conseqquences of uences of out-out-pperforminerformingg them them.”.” —Dan Kindlon, Alpha Girls

Women’s Women’s contribution to contribution to family income: family income: major source of major source of

growing inequalitygrowing inequality


#9C#9C

COROLLARY. COROLLARY. EXCELLENCE. EXCELLENCE.

WOMEN.WOMEN.RULE.RULE.

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparts’ shoes counterparts’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/FGoods/M

Raw Materials/M

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons WhySelling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell MenWomen Can Outsell Men, Nicki Joy & Susan Kane-Benson, Nicki Joy & Susan Kane-Benson

The Core Argument: Women [Ought to] Rule!The Core Argument: Women [Ought to] Rule!

1. We are in a War for Talent.1. We are in a War for Talent.2. The war will intensify.2. The war will intensify.3. There is a severe shortage of effective leaders3. There is a severe shortage of effective leaders at all levels. at all levels.4. Women are under-represented in our4. Women are under-represented in our leadership ranks at or near the top. leadership ranks at or near the top.5. Women and men are different; “new science”5. Women and men are different; “new science” reinforces this view. reinforces this view.6. Women’s strengths match the New Economy’s6. Women’s strengths match the New Economy’s leadership needs—to a striking degree. leadership needs—to a striking degree.7. Women are also the principal purchasers of7. Women are also the principal purchasers of goods and services—retail and commercial. goods and services—retail and commercial.8. 8. Ergo, women are a large part of “the answer” Ergo, women are a large part of “the answer”

to the War for Talent/leadership shortage to the War for Talent/leadership shortage issue/opportunity. issue/opportunity.

““[Women] bring a [Women] bring a different perspective to different perspective to

politics. They don’t expect politics. They don’t expect to be waited on —to be waited on —and in and in everything we do we everything we do we

keep our kids in keep our kids in mind.”mind.” —Sarah Palin, first woman governor—Sarah Palin, first woman governor

of Alaska ( of Alaska (USA TodayUSA Today, 0104.07), 0104.07)


#9D#9D


OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.BOOMERS.BOOMERS.GEEZERS.GEEZERS.


S.S.GEEZERSGEEZERS

..

““IdiotIdiots”s” is too

kind a word.

StuStuppid Fr*&^inid Fr*&^ingg Idiot- Idiot-Marketers!Marketers!

“Critics describe evening news in unflattering

terms— They’re They’re old!old! They’re set in their

ways! They won’t buy iPods!”

Source: Advertising Age, 05.08.06

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

????????“Gen Y Sits on Top of “Gen Y Sits on Top of

Consumer Food Chain: They’re Consumer Food Chain: They’re savvy shopper with money and savvy shopper with money and

influence”influence” —Headline, USA Today, 1012.06

Just Say No.Just Say No. 118-8-4444

Subject: Marketers & StupiditySubject: Marketers & Stupidity

““It’s 18-It’s 18-44, 44,

stupid!”stupid!”

Subject: Marketers & StupiditySubject: Marketers & Stupidity

Or is it: “18-44 is

stupid, stupid!”

“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly

coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants Who wants

to reach them?to reach them? Beyond fast food and beer, they don’t buy much of anything. … The

theory is that if you ‘get them while they’re

young, they’re yours for life.’ What What nonsensenonsense!”!”

—Marti Barletta, PrimeTime Women

2000-2010 Stats

18-44: -1%-1%

55+: ++2121%%(55-64: ++4747%%)

BoomerBucks!BoomerBucks!Boomer turns 50: every 7 seconds. Boomer turns 50: every 7 seconds. 2009: majority of 2009: majority of U.S. households headed by someone over 50.U.S. households headed by someone over 50. 2006- 2006-2016: U.S. population up 22.9 million; 22.1 million in 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. over-50 group. 2006: 1 in 5 adults is F, over 50.2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Women between 50-70 who are single: 35%. Age 45-Age 45-54: highest average income, $59, 021 (national 54: highest average income, $59, 021 (national

average is $42,209).average is $42,209). FASTEST GROWING INCOME FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64CATEGORY: WOMEN, 55-64 (4X men in same category). (4X men in same category). Women, age 60-64: 50% still in workforce.Women, age 60-64: 50% still in workforce. Highest Highest net worth: families, 55-64 ($182,000). net worth: families, 55-64 ($182,000). People over People over

50: 70% to 79% of all financial assets; 80% of all 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. spending, 50% of discretionary spending. Next 2 Next 2

decades: decades: BOOMERS WILL INHERIT $14 TRILLION-$25 BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLIONTRILLION (“largest intergenerational transfer of (“largest intergenerational transfer of

wealth in history”). wealth in history”).

—Marti Barletta, —Marti Barletta, PrimeTime WomenPrimeTime Women

55-64 vs 25-34

E.g.: New cars & trucks: 20% more New cars & trucks: 20% more spending. Meals at full-service restaurants: spending. Meals at full-service restaurants:

+29%. Airfare: +38%. Sports equipment: +29%. Airfare: +38%. Sports equipment: +58%. Motorized recreational vehicles: +58%. Motorized recreational vehicles:

+103%. Wine: 113%. Maintenance, repairs +103%. Wine: 113%. Maintenance, repairs and home insurance: +127%. Vacation and home insurance: +127%. Vacation homes: +258%. Housekeeping & yard homes: +258%. Housekeeping & yard

services: +250% to +500%. services: +250% to +500%.

Source: Marti Barletta, PrimeTime Women

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household

after the “head of household” reaches age

50: 77Source: Marti Barletta, PrimeTime Women

3Q/2006.3Q/2006.$312M. (+18%.)$312M. (+18%.)$1.6B. (+14%.)$1.6B. (+14%.)

Source: Source: BusinessWeekBusinessWeek, 1106.06, “Harley Just Keeps on , 1106.06, “Harley Just Keeps on Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely. Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely.

So why is the stock at a record high?”So why is the stock at a record high?”

50+50+$7T$7T wealth (70%)/ $2T$2T annual income

50%50% all discretionary spending

79%79% own homes

40M40M credit card users41% new cars/48% luxury cars

$610B healthcare spending/74% prescription drugs

5% of advertisin5% of advertisingg tar targgetsetsKen Dychtwald, Age Power: How the 21st

Century Will Be Ruled by the New Old

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when Which is pretty weird when you consider age 50 is right you consider age 50 is right

about when people who have about when people who have worked all their lives start to worked all their lives start to have some money to spend.”have some money to spend.”


Median Household Net WorthMedian Household Net Worth

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

55-64: $112K55-64: $112K65-69: $114K65-69: $114K70-74: $120K70-74: $120K

>74: $100KSource: U.S. Census

44-65: “New “New Customer Customer Majority”Majority” *

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

““The New Customer The New Customer Majority is the only adult Majority is the only adult

market with realistic market with realistic prospects for significant prospects for significant sales growth in dozens of sales growth in dozens of

product lines for product lines for thousands of thousands of companies.”companies.”

—David Wolfe & Robert Snyder, Ageless Marketing

““Marketers attempts at Marketers attempts at reaching those over 50 reaching those over 50 have been miserably have been miserably

unsuccessful. unsuccessful. No market’s No market’s motivations and needs motivations and needs

are so poorly are so poorly understoodunderstood.”.”

—Peter Francese, founding publisher, American Demographics

PossessionPossession ExperiencesExperiences /“Desires for /“Desires for

thingsthings”/Young adulthood/to 38”/Young adulthood/to 38

CateredCatered Experiences Experiences/ “Desires to / “Desires to be be servedserved by others”/Middle by others”/Middle

adulthoodadulthood

BeinBeing Experiencesg Experiences/“Desires for /“Desires for transcending transcending experiencesexperiences”/Late ”/Late

adulthoodadulthood

Source: David Wolfe and Robert Ageless MarketingAgeless Marketing

““Older people have an image problem. As Older people have an image problem. As a culture, we’re conditioned toward youth. a culture, we’re conditioned toward youth.

… When we think of youth, we think … When we think of youth, we think ‘energetic and colorful;’ when we think of ‘energetic and colorful;’ when we think of

middle age or ‘mature,’ we think ‘tired middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of and washed out.’ and when we think of

‘old’ or ‘senior,’ we think either ‘old’ or ‘senior,’ we think either ‘exhausted and gray’ or, more likely, we ‘exhausted and gray’ or, more likely, we

just don’t think. … just don’t think. … The financial The financial numbers are absolutely inarguablenumbers are absolutely inarguable——the Mature Market has the moneythe Mature Market has the money..

Yet advertisers remain astonishingly Yet advertisers remain astonishingly indifferent to them. …”indifferent to them. …”


““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

“WOMAN of the Year: She’s She’s the most powerful the most powerful

consumer in America.consumer in America. And as she starts to turn sixtysixty

this month, the affluent baby boomer is doing what she’s always done—redefining redefining

herself.”herself.” —Joan Hamilton, Town & Country, JAN06

Magazine of Magazine of the Year*:the Year*: MoreMoreSource: Source: Advertising AgeAdvertising Age, 1023., 1023.20062006, “‘More’ , “‘More’

Taps Power of 40-plus to Draw Advertisers in Taps Power of 40-plus to Draw Advertisers in Droves”Droves” (“More is breaking through (“More is breaking through

advertisers’ irrational obsession withadvertisers’ irrational obsession with 20-somethings …”) 20-somethings …”)

““Rock of Ages: Uncool Rock of Ages: Uncool But True, the AARP But True, the AARP

Demographic Leads the Demographic Leads the Music Market. But Who Music Market. But Who

Will Lead It?”Will Lead It?”

Source: Headline, “Arts and Leisure,” Source: Headline, “Arts and Leisure,” NYTNYT, 1126.06, 1126.06

““SixtySixty Is Is the New the New ThirtyThirty””

—Cover/—Cover/AARPAARP

“‘“‘Age PowerAge Power’’ will rule the 21will rule the 21stst

century, and we are century, and we are woefully unprepared.”woefully unprepared.”

Ken Dychtwald, Age Power: How the 21st

Century Will Be Ruled by the New Old

Explosion of “Stay at Home” ServicesExplosion of “Stay at Home” Services

Beacon Hill VillageBeacon Hill Village (>50; $580 per year; (>50; $580 per year; screened providers, 10%+ off; $35 to take screened providers, 10%+ off; $35 to take

cat and member to vet)cat and member to vet)

Geriatric care managersGeriatric care managers ($80-$200 per ($80-$200 per hour; Nat’l Ass’n of Professional Geriatric Care hour; Nat’l Ass’n of Professional Geriatric Care

Managers)Managers)

Seniors Safe@HomeSeniors Safe@Home (monitor client (monitor client movements such as bathroom, gotten out of bed; BP, movements such as bathroom, gotten out of bed; BP,

sugarsugar levels, data screened by call center, available via levels, data screened by call center, available via

Web to children; etc) Web to children; etc)

“Road Signs of the Times: Creating an

easier-to-read typeface for aging drivers”

—The New York Times


#9E#9E

BONUS.BONUS.

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

SINGLE-PERSON SINGLE-PERSON HOUSEHOLDS.HOUSEHOLDS.

Fastest growing demographic:

Single-person Single-person HouseholdsHouseholds (>50%

in London, Stockholm, etc.)

Source: Richard Scase

% of homes purchased by single womensingle women: 1981,

10%;2005, 20%

% of homes purchased by single mensingle men: 1981, 10%;

2005, 9%

Source: USA Today/02.15.06

Women PURCHASERS.Women PURCHASERS.Women business owners.Women business owners.

WOMEN WEALTH CONTROLLERS.WOMEN WEALTH CONTROLLERS.WELL-PAID WOMEN WORKERS.WELL-PAID WOMEN WORKERS.

WOMEN LEADERS.WOMEN LEADERS.Boomer-Geezer PURCHASERS.Boomer-Geezer PURCHASERS.

BOOMER-GEEZER WEALTH BOOMER-GEEZER WEALTH CONTROLLERS.CONTROLLERS.

Single-person HHs (Urban)Single-person HHs (Urban)

BONUS.BONUS.

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

GENERIC DEMOGRAPHIC GENERIC DEMOGRAPHIC TSUNAMI. TSUNAMI. (UNPRECEDENTED IN HISTORY.)(UNPRECEDENTED IN HISTORY.)

Demographic Upheaval!Demographic Upheaval!

1/1/2008: 60%60% of the Prime Work Force (“boomers”), mostly white males, will be

able to retire—at a rate of 10,000 per 10,000 per dayday.

As of 2005: 75%75% of people entering the workforce are women and minorities. As of

2008, they will “flood the “flood the management ranks”management ranks” as the

PWF retires.

Programs for recruiting women and minorities with the necessary intensity:

mostly AWOL.

Selling to Men, Selling to Women, Jeffery Tobias Halter


#9F#9F

not.not.Yet.Yet.

Done.Done.

What the hell What the hell do I have to do I have to do to make do to make my point?my point?

Tom Peters

The Copenhagen (Self) Pact re “This The Copenhagen (Self) Pact re “This Topic”:Topic”:

*Early!*Early!*Loud!*Loud!*Repetitive!*Repetitive!*Aggressive!*Aggressive!**UnUnfriendly!/rude!/friendly!/rude!/ insulting! insulting!

Women’s Trifecta+Women’s Trifecta+


*Lead/*Lead/ betterbetter +Eclipse of +Eclipse of males/males/whoopswhoops (Retire-old/Poorly educated-young)

Boomers’-Geezers’ TrifectaBoomers’-Geezers’ Trifecta


*time left/ *time left/ lotslots

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+


*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

Just Say “No” (!):Just Say “No” (!):

Launch an

“Initiative.”

You either believeYou either believe “all this.” “all this.”

Or don’t.Or don’t.** *No middle ground at the level of Extreme Commitment I’m

suggesting

Don’t Don’t “get it” “get it”

= = StupidStupid**

*and you are *and you are notnot stupid stupid

E-nor-mous E-nor-mous Strat-eg-ic Strat-eg-ic opp-or-tun-opp-or-tun-

ityity


S.S.GEEZERSGEEZERS

..


#10#10


BIGGEST BIGGEST INDUSTRY.INDUSTRY.

EMERGENCY.EMERGENCY.OPPORTUNITY.OPPORTUNITY.

““What’s Really Propping What’s Really Propping Up the Economy: Up the Economy:

Healthcare has added 1.7 Healthcare has added 1.7 million jobs since 2001. million jobs since 2001. The rest of the private The rest of the private

sector? sector? NoneNone.”.”

Source: Title, cover story, Source: Title, cover story, BusinessWeekBusinessWeek, 0925.2006, 0925.2006

22mm3838ss

Q.W.P.Q.W.P. ** *Quality. Wellness. Prevention*Quality. Wellness. Prevention..

Childhood Childhood Obesity Obesity >> TerrorismTerrorism

Bust Bust fat fat

docsdocs!!

““Sanitary revolution”: Sanitary revolution”: mortality in major citiesmortality in major cities

downdown 5555%%

between 1850 and 1915between 1850 and 1915Source: Tom Farley & Deborah Cohen, Source: Tom Farley & Deborah Cohen, Prescription for a Healthy NationPrescription for a Healthy Nation

““If God spoke to me by saying, ‘Mark, you’re down to If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your last three words: What would you want to say to

your fellow humans that would make the most positive your fellow humans that would make the most positive impact?’ It would be a close call between Love Thy impact?’ It would be a close call between Love Thy

Neighbor andNeighbor and Wash Your Wash Your HandsHands . . A close third would be Move, A close third would be Move,

Move, Move.”Move, Move.” —Mark Pettus, M.D., The Savvy Patient—Mark Pettus, M.D., The Savvy Patient

“The most important thing you can do to keep “The most important thing you can do to keep

from getting sick is to from getting sick is to wash wash your handsyour hands.. ”” ——CDCCDC/National /National

Center for Infectious DiseasesCenter for Infectious Diseases

EXCELLENCE. EXCELLENCE. (HEALTHCARE.)(HEALTHCARE.)

HEALTH.HEALTH.

HEALTHHEALTH??

State of Healthcare/U.S.A.

*Spend more per capitaSpend more per capita

*Overall systemOverall system performance/WHO: 37 performance/WHO: 37thth

*Relatively low life expectancyRelatively low life expectancy

*High # of uninsuredHigh # of uninsured

Source: Consulting, 07-08.06

ISSUES. ISSUES.

QualityQuality (100K+ deaths)(100K+ deaths)

“Evidence/Outcomes-based” medicine“Evidence/Outcomes-based” medicineIS/IT-in-health(care) revolutionIS/IT-in-health(care) revolution

Wellness/PreventionWellness/PreventionHealth“care” to Health “culture” transformationHealth“care” to Health “culture” transformation

Wash your hands!Wash your hands!Home-care Home-care (as the population rapidly ages)(as the population rapidly ages)

Med-school re-orientationMed-school re-orientation “Public health” emphasis “Public health” emphasis

Childhood ObesityChildhood Obesity Mind-boggling (15 years?) social-moral-technological Mind-boggling (15 years?) social-moral-technological

impact of life sciences impact of life sciences (“the Singularity”?)(“the Singularity”?)

H5N1H5N1/WMDs/Environmental degradation/WMDs/Environmental degradationRisk assessment Risk assessment (private, public)(private, public)

Market opportunityMarket opportunityPublic vs/+ Private responsibilities & partnerships Public vs/+ Private responsibilities & partnerships

Africa! Africa! (Unconscionable failure to attend to/staggering Health consequences for all)(Unconscionable failure to attend to/staggering Health consequences for all)

REPORT REPORT CARDCARD..

Re-imagine Healthcare: Reportcard2006

Evidence-based/Outcomes-based ……………….………...... DEvidence-based/Outcomes-based ……………….………...... DPay-for-performance ………………………………………….… DPay-for-performance ………………………………………….… DIS/IT (general) ………………………………..………………..…. C-IS/IT (general) ………………………………..………………..…. C-Use of information (for decisionmaking-measurement) .… C-Use of information (for decisionmaking-measurement) .… C-EMR (Electronic Medical Records) ……………………..….... DEMR (Electronic Medical Records) ……………………..….... DCPOE (Computerized Physician Order Entry) ……….……. C-/DCPOE (Computerized Physician Order Entry) ……….……. C-/DQuality/100K+ unnecessary deathsQuality/100K+ unnecessary deaths …………..……… D- …………..……… D-(kind)(kind)Acute care to chronic care-home care shift ………….….... D/D-Acute care to chronic care-home care shift ………….….... D/D-Acute-care to Prevention/Wellness ObsessionAcute-care to Prevention/Wellness Obsession…..… F-…..… F-Patient-centric/Patient-centric/ClientClient-centric………………………………….. D-centric………………………………….. DDocs’ acceptance of “evidence-based” …………............… D/D-Docs’ acceptance of “evidence-based” …………............… D/D-“Revolutionary”-intensity Incentives re evidence …..……. D-“Revolutionary”-intensity Incentives re evidence …..……. D-Childhood obesity epidemicChildhood obesity epidemic …………………………….. D- …………………………….. D-H5N1 preparednessH5N1 preparedness ………………………………….…….. D ………………………………….…….. D

Corporate focus on Prevention/Wellness…………..…..…..... C-/DCorporate focus on Prevention/Wellness…………..…..…..... C-/DIndividual focus on Prevention/Wellness…………………..… DIndividual focus on Prevention/Wellness…………………..… DIndividuals’ health education/self-management …….…...…. C-Individuals’ health education/self-management …….…...…. C-

Workforce acceptance of self-responsibility ….…….…...….. C-Workforce acceptance of self-responsibility ….…….…...….. C-Workforce transition to “Brand You” attitude……..……..….. C-/DWorkforce transition to “Brand You” attitude……..……..….. C-/D

3 March 2006/Tom Peters

T.T.D./T.T.D./ACTION.ACTION.

NOW.NOW.

Visible Signs/Measures Visible Signs/Measures (Creech)(Creech)TRAIN. TRAIN. TRAIN. TRAIN. TRAIN. TRAIN. (P.S.)(P.S.)

Med school, Nursing school curriculum Med school, Nursing school curriculum (P.S.)(P.S.)BOLD!/Big change EASIER thanBOLD!/Big change EASIER than

modest change modest change (P.S., etc.)(P.S., etc.)EXCELLENCE. ONLY. ALWAYS. DAMN IT.EXCELLENCE. ONLY. ALWAYS. DAMN IT.

EVP/Patient SafetyEVP/Patient SafetyP.S.O.sP.S.O.s

Fund the living hell out of it (P.S.)Fund the living hell out of it (P.S.)CEO (etc): REFLECT IT IN CALENDARCEO (etc): REFLECT IT IN CALENDAR

EMERGENCY STATUSEMERGENCY STATUSH.M.O.s: H.M.O.s: Big/ENORMOUS (+/-) incentives Big/ENORMOUS (+/-) incentives

for docs, hospitals, etc., etc.for docs, hospitals, etc., etc.BOARD: Patient Safety CommitteeBOARD: Patient Safety Committee

BOARD: WPCC CommitteeBOARD: WPCC CommitteePatient Safety BALDRIDGE (POTUS?)Patient Safety BALDRIDGE (POTUS?)

CERTIFICATION/RE-CERTIFICATIONCERTIFICATION/RE-CERTIFICATION for One & All for One & All (P.S., etc.)(P.S., etc.)

WPOCC Rules!!!!!!!WPOCC Rules!!!!!!! (Wellness/ (Wellness/ Prevention/Obesity/ChronicCare)Prevention/Obesity/ChronicCare)

WPOCC: N.G.A. (AK)WPOCC: N.G.A. (AK)INSURANCE COMPANY VISIBILITY/INSURANCE COMPANY VISIBILITY/SPONSORSHIP/MEGA-INCENTIVESSPONSORSHIP/MEGA-INCENTIVES

Awards Galore P.S./WPOCC)Awards Galore P.S./WPOCC)BOARD Committee: H5N1BOARD Committee: H5N1

HHS: Split HC & PWO (Ontario)HHS: Split HC & PWO (Ontario)Write off ½ of med school loan if “pay” with 3-5 Write off ½ of med school loan if “pay” with 3-5

years service in Public Healthyears service in Public HealthGlamorize Family Practice, Public Health, etc.Glamorize Family Practice, Public Health, etc.FAT legislation?? (Almost certainly) (Density, FAT legislation?? (Almost certainly) (Density, HFCS, Transfats, etc., etc.) (A FIRST FOR TP)HFCS, Transfats, etc., etc.) (A FIRST FOR TP)

SUE the hell out of One & AllSUE the hell out of One & All re Obesity (Cigarettes II) re Obesity (Cigarettes II)

Research LEAP @ N.I.H. (Etc, Etc, ETC)Research LEAP @ N.I.H. (Etc, Etc, ETC)INCENTIVES @ SCHOOLS (BIG!!)INCENTIVES @ SCHOOLS (BIG!!)

EMR: Intensify!!!!!!!!!!!!!EMR: Intensify!!!!!!!!!!!!!No leadership position in AHA (AMA?)No leadership position in AHA (AMA?) (DEANs?) (Etc?) without “Safety tour” (DEANs?) (Etc?) without “Safety tour”

No Medical Chief (>150 beds?) No Medical Chief (>150 beds?) without “Safety tour”without “Safety tour”

FORGET ABOUT ME!!! (Except FORGET ABOUT ME!!! (Except Wellness, ChroniCare)Wellness, ChroniCare)

VIGOROUSLYSUPPORT Home CareVIGOROUSLYSUPPORT Home CareAmerican OBESITY = African AIDs (??)American OBESITY = African AIDs (??)

ELIMINATE/OBLITERATE HIGHELIMINATE/OBLITERATE HIGH FRUCTOSE CORN SYRUP! FRUCTOSE CORN SYRUP!

ELIMINATE/OBLITERATE TRANSFATS!ELIMINATE/OBLITERATE TRANSFATS!(HFTC/TF = The Real “WMDs”)(HFTC/TF = The Real “WMDs”)

FDA: Kill! Kill! Kill! (Please)FDA: Kill! Kill! Kill! (Please)

CEO Bonus: 50+%: P.S./WPOCCCEO Bonus: 50+%: P.S./WPOCCOBNOXIOUS labelsOBNOXIOUS labels

Incentives for BILLBOARDSIncentives for BILLBOARDSNatl Advertising CouncilNatl Advertising Council

PARENTING education, etc.PARENTING education, etc.

THIS IS THIS IS NOTNOT A A “PROGRAM” “PROGRAM” (P.S./WPOCC)(P.S./WPOCC)

STATE OFSTATE OFEMERGENCYEMERGENCY

Bust Bust fat fat

docs!docs!

Health:Health:Century21.Job # 1Century21.Job # 1

Quality!Quality!Prevention!Prevention!Wellness!Wellness!

Chronic care! Chronic care!Childhood obesity!Childhood obesity!

H5N1!H5N1!

Quality!

22mm3838ss

Welcome to the Homer Simpson Hospital

a/k/a

The Killing Fields

““When I climb Mount When I climb Mount Rainier I face less Rainier I face less

risk of death than I’ll risk of death than I’ll face on the face on the

operating table.”operating table.” —Don Berwick, “Six Keys to Safer Hospitals: A Set of Simple Precautions Could Prevent 100,000 Needless Deaths Every Year,” Newsweek (1212.2005)

“Quality”:

COULD IT TRULY BE

THIS AWFUL?

HealthGrades/Denver:

195,000195,000 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 This should give you pause when you go to the hospital.”when you go to the hospital.” —Dr. Kenneth Kizer,

National Quality Forum. “There is little There is little evidence that patient safety has evidence that patient safety has improved in the last five yearsimproved in the last five years.”.” —Dr.

Samantha Collier

Source: Boston Globe/07.27.04

1,000,0001,000,000

“serious medication errors per “serious medication errors per year” … “illegible handwriting, year” … “illegible handwriting, misplaced decimal points, and misplaced decimal points, and missed drug interactions and missed drug interactions and

allergies.”allergies.”

Source: Wall Street Journal /Institute of Medicine

CDC 1998: 90,00090,000 killedkilled and and 2,000,0002,000,000

injuredinjured from from hospital-caused drug hospital-caused drug

errors & infectionserrors & infections

““BAD MEDICINE: This BAD MEDICINE: This teenager teenager [Jehan Nassif][Jehan Nassif] died died because of a medical because of a medical

bungle. So do 18,000 other bungle. So do 18,000 other Australians each year. Why Australians each year. Why our hospitals keep making our hospitals keep making

fatal mistakes.”fatal mistakes.” —cover, The Bulletin (Australia), 09.05.2006 (“… up to 16%

of hospitalized patients will suffer an adverse event; 50% of these will be preventable and 10% of these will lead to

permanent disability or death.”) (equivalent, on a per capita basis, to about 200,000 in the United States200,000 in the United States —which is

about the actual U.S. number)

Dear Mr. & Mrs. Smith,

XYZ hospital regrets to inform you ……. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….Sincerely,A. S. Jackson, AdministratorT. D. Jones, M.D., Chief Medical OfficerL.S. Donald, CFOW.N. Arnold, CIO

Reporter: “Mr Gandhi, what do you think about western civilization?”*

Gandhi: “I think it would be a very good idea.”

*Upon the occasion of Gandhi’s historic visit to England

About Time!

100,000 Lives 100,000 Lives Campaign*Campaign*

*Don Berwick/Institute for Healthcare Improvement

Childhood Childhood Obesity Obesity >> TerrorismTerrorism

Source: Mike Levitt/Secretary HHS

HEALTHHEALTH

TP Recommendation #1:

Dubai Healthcare Dubai Healthcare City City

toto

Dubai Health City* Dubai Health City*

*Cleveland Clinic and Canyon Ranch

WashWash your hands. your hands.Apply Apply #50#50 sunscreen. sunscreen.

Banish Banish trans fattrans fatBanish Banish high fructose corn syruphigh fructose corn syrup..

ExerciseExercise “30-7.” “30-7.”BreatheBreathe..

Stockpile for Stockpile for H5N1H5N1.*.* (*not Tamiflu!)(*not Tamiflu!)

Avoid Avoid hospitalization.hospitalization.Take charge Take charge of your health.of your health.

“If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to

your fellow humans that would make the most positive impact?’ It would be a close call between Love Thy

Neighbor and Wash Your Wash Your HandsHands .. A close third would be Move, Move,

Move, MoveMove, Move.”.” —Mark Pettus, M.D., The Savvy Patient

“The most important thing you can do to keep

from getting sick is to wash your wash your handshands.. ” —CDC/National Center for Infectious Diseases

Primary “Success Primary “Success Factors”:Factors”: “Sanitary “Sanitary

revolution”: mortality in revolution”: mortality in major citiesmajor cities downdown

5555%% between between

1850 and 19151850 and 1915Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

20%:20%: not get not get prescriptions filled prescriptions filled

50%:50%: use meds use meds inconsistently inconsistentlySource: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

Only Effective Strategy?

“Curve “Curve Shifting”Shifting”

Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

““BUMP INTO FACTOR”:BUMP INTO FACTOR”: Extra-size portions, eat Extra-size portions, eat

more. Higher % shelf space more. Higher % shelf space snacks, more obesity. More snacks, more obesity. More

liquor stores, more crime. liquor stores, more crime. High vs low fat: Japanese High vs low fat: Japanese

who emigrate to U.S. suffer who emigrate to U.S. suffer 3X3X increase in heart increase in heart

disease.disease.

Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

Behavioral Primacy!

E.g.: plate size, E.g.: plate size, location of platters, location of platters,

6.5 feet = -63%6.5 feet = -63%

Source: Brian Wansink, Source: Brian Wansink, Mindless EatingMindless Eating (20 lbs per year; 200 decisions per (20 lbs per year; 200 decisions per day) ( day) (In Search of ExcellenceIn Search of Excellence, office , office spacing and communication; Sprint;spacing and communication; Sprint;

density of FF outlets) density of FF outlets)

SSpprint/Overland Park KSrint/Overland Park KS:: Slow elevators, distant Slow elevators, distant

parking lots with parking lots with infrequent buses, “food infrequent buses, “food

court” as “poorly” placedcourt” as “poorly” placed as possible, etc. as possible, etc.

Source: New York Times

WELLNESSWELLNESS

Why wasn’t I “informed” until age Why wasn’t I “informed” until age

59?59? Aging Aging reversal!!!!reversal!!!!

“Fixes”

DietDietExtreme exerciseExtreme exercise

MeditationMeditationSupplementsSupplements

Eliminate all alcoholEliminate all alcohol(Meds)(Meds)

Health + Social combination Health + Social combination = 20% fewer admissions, = 20% fewer admissions, 40% less bed occupancy40% less bed occupancy

[over 65][over 65]

Source: Unicare/UK/Dr David Source: Unicare/UK/Dr David Lyon/Lyon/PulsePulse, 1123.06, 1123.06

Market ForcesMarket Forces

RediClinic.CheckUps.Take RediClinic.CheckUps.Take Care.MinuteClinic*Care.MinuteClinic* (*“We treat (*“We treat

these 16 rules-based disorders”/ “Go-no go” these 16 rules-based disorders”/ “Go-no go” tests.15 minutes.$39)tests.15 minutes.$39)

Wal*Mart.CVS.Target.Wal*Mart.CVS.Target.Walgreens.RiteAidWalgreens.RiteAid

Source: Source: FT FT (10.06.06); (10.06.06); NYT NYT (12.31.06)(12.31.06)

VALUE VALUE ADDED ADDED #10A#10A

HEALTHCAREHEALTHCAREMEETSMEETS

HEALTH: The Case HEALTH: The Case of the PLANETREE of the PLANETREE

ALLIANCEALLIANCE

PlanetreePlanetree:: A Radical Model for A Radical Model for

New New Healthcare/Healing/Healthcare/Healing/Wellness Wellness ExcellenceExcellence

Tom Peters/17 September 2006

““It was the goal of It was the goal of the Planetree Unit to the Planetree Unit to

help patients not help patients not only get well faster only get well faster but also to stay well but also to stay well longer.”longer.” —Putting Patients First,

Susan Frampton, Laura Gilpin, Patrick Charmel

““Much of our current Much of our current healthcare is about healthcare is about curing curing . . Curing is good. But Curing is good. But healinghealing is spiritual, and healing is is spiritual, and healing is

better, because we can heal better, because we can heal many people we cannot many people we cannot

cure.”cure.” —Leland Kaiser, “Holistic Hospitals”

The 9 Planetree Practices

1.1. The Importance of Human InteractionThe Importance of Human Interaction2. Informing and Empowering Diverse Populations: Consumer Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Health Libraries and Patient Information3. Healing Partnerships: The importance of Including Friends Healing Partnerships: The importance of Including Friends and Family and Family4. Nutrition: The Nurturing Aspect of Food Nutrition: The Nurturing Aspect of Food5. Spirituality: Inner Resources for Healing Spirituality: Inner Resources for Healing6.6. Human Touch: The Essentials of Communicating Human Touch: The Essentials of Communicating Caring Through Massage Caring Through Massage7.7. Healing Arts: Nutrition for the Soul Healing Arts: Nutrition for the Soul8.8. Integrating Complementary and Alternative Practices Integrating Complementary and Alternative Practices into Conventional Care into Conventional Care9.9. Healing Environments: Architecture and Design Conducive Healing Environments: Architecture and Design Conducive to Health to Health

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

1. The The Importance of Importance of

Human Human InteractionInteraction

“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their

questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a

positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Press Ganey Assoc: 139,380 former patients from 225 hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome

PSPS directldirectly related to y related to StaffStaff InteractionInteraction

PSPS directldirectly correlated with y correlated with Employee Employee SatisfactionSatisfaction


“Perhaps the simplest and most profound of all human interactions

is KINDNESS. … But if it is so But if it is so simsimpple, it is surle, it is surpprising how rising how

frefreqquentluentlyy it is absent from our it is absent from our healthcare environmentshealthcare environments.. … Many

staff members report verbal

‘abuse‘abuse’’ by physicians,

managers and coworkers.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

““Planetree is Planetree is about human about human

beings caring for beings caring for other human other human

beings.”beings.”

—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies

and gentlemen”—4S credo)

2. Informing and Informing and Empowering Diverse Empowering Diverse

Populations: Populations: ConsumerConsumer Health Libraries and Health Libraries and

Patient InformationPatient Information

Planetree Health Resources Center/1981Planetree Health Resources Center/1981Planetree Classification SystemPlanetree Classification System

Consumer Health LibrariansConsumer Health LibrariansVolunteersVolunteers

Classes, lecturesClasses, lecturesHealth FairsHealth Fairs

Griffin’s Mobile Health Resource CenterGriffin’s Mobile Health Resource CenterOpen Chart PolicyOpen Chart Policy

Patient Progress NotesPatient Progress NotesCare Coordination Conferences (Est Care Coordination Conferences (Est

goals, timetable, etc.)goals, timetable, etc.)


3. Healing Healing Partnerships: Partnerships: The The

Importance of Importance of IncludingIncluding

Friends and Friends and FamilyFamily

“When hospital staff members are asked to list the attributes of the ‘perfect patient

and family,’ their response is

usually a passive patient with no

family.” —Putting Patients First, Susan

Frampton, Laura Gilpin, Patrick Charmel

The Patient-Family Experience

“Patients are stripped of Patients are stripped of control, their clothes are control, their clothes are

taken away, they have little taken away, they have little say over their schedule, and say over their schedule, and

they are deliberately they are deliberately separated from their family separated from their family

and friends. Healthcare and friends. Healthcare professionals control all of professionals control all of the information about their the information about their patients’ bodies and access patients’ bodies and access

to the people who can to the people who can answer questions and answer questions and

connect them with helpful connect them with helpful resources. Families are resources. Families are

treated more as intruders treated more as intruders than loved ones.”than loved ones.” —Putting Patients First,


““Family members, close friends Family members, close friends and ‘significant others’ can and ‘significant others’ can

have a far greater impact on have a far greater impact on patients’ experience of illness, patients’ experience of illness, and on their long-term health and on their long-term health

and happiness, than any and happiness, than any healthcare professional.”healthcare professional.”

—Through the Patient’s Eyes

“A 7-year follow-up of women diagnosed with breast cancer

showed that those who confidedconfided inin atat leastleast oneone personperson in the 3 months after surgery had a 7-year survival

rate of 72.472.4%%,, as compared to 56.3%56.3% for those who didn’t have

a confidant.” —Institute for the Future

Institute of Medicine/ “Crossing the Quality Chasm”

Respect for preferencesRespect for preferencesInvolvement in Decision MakingInvolvement in Decision Making

Access to careAccess to careCoordination of careCoordination of care

Information and educationInformation and educationPhysical comfortPhysical comfort

Emotional supportEmotional supportInvolvement of Friends and FamilyInvolvement of Friends and Family

Continuity of careContinuity of care


Care Partner ProgramsCare Partner Programs (IDs, discount meals, etc.)

Unrestricted visitsUnrestricted visits (“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one

hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members

may be present.”)

Collaborative Care ConferencesCollaborative Care ConferencesClinical Guidelines DiscussionsClinical Guidelines Discussions

Family SpacesFamily SpacesPet VisitsPet Visits (POP: Patients’ Own Pets)


4. Nutrition: Nutrition: The Nurturing The Nurturing Aspect of FoodAspect of Food

Meals are central Meals are central eventsevents

vs

“There, you’re fed.” *

*Irony: Focus on “nutrition” has reduced focus on “food” and “service”


KitchenKitchen

Beautiful cutlery,Beautiful cutlery, plates, etc. plates, etc.

Chef reputationChef reputation


Aroma therapyAroma therapy (e.g.: “smell of baking cookies”)


5. Spirituality: Spirituality: Inner Resources Inner Resources

for Healingfor Healing

Spirituality: Meaning and Connectedness in Life

1. Connected to supportive and1. Connected to supportive and caring group caring group2. Sense of mastery and control2. Sense of mastery and control3. 3. Make meaning out of Make meaning out of disease/disease/ find meaning in suffering find meaning in suffering


Griffin: redesign chapelredesign chapel (waterfall, quiet music, open prayer book)

Other: music, flowers, portablemusic, flowers, portable labyrinth labyrinth


6. Human Touch: Human Touch: The Essentials of The Essentials of CommunicatingCommunicating

Caring Through Caring Through MassageMassage

““Massage is a Massage is a powerful way to powerful way to

communicate communicate caring.”caring.” —Putting Patients First,


Mid-Columbia Medical Center/Center for Mind and Body

Massage for every patient scheduled for Massage for every patient scheduled for ambulatory surgery ambulatory surgery (“Go into surgery with(“Go into surgery witha good attitude”) a good attitude”) Infant massageInfant massageStaff massage Staff massage (“caring for the caregivers”)(“caring for the caregivers”)Healing environments: chemo!Healing environments: chemo!


7.7. Healing Arts: Healing Arts: Nutrition forNutrition for

the Soul the Soul

Planetree: “Environment conducive to healing”

Color!Color!Light!Light!

Brilliance!Brilliance!Form!Form!Art!Art!

Music!Music!


Florence Nightingale/Notes on Nursing/patient’s need for beauty,

windows, flowers: “People People say the effect is only say the effect is only on the mind. It is no on the mind. It is no

such thing. The effect such thing. The effect is on the body, too.”is on the body, too.”


Griffin: Music in the parking Music in the parking lot; professional musicians in lot; professional musicians in

the lobbythe lobby (7/week, 3-4hrs/day) ;

5 pianos5 pianos ;

volunteersvolunteers (120-140 hrs arts &

entertainment per month).


8. Integrating Integrating Complementary and Complementary and

Alternative Practices Alternative Practices into Conventional into Conventional

CareCare

CAM (Complementary & Alternative Medicine):

83M in US83M in US (42%)(42%)

CAM visits 243M, greater than to PCPCAM visits 243M, greater than to PCP (Primary (Primary Care Physician) (With min insurance coverage)Care Physician) (With min insurance coverage)

W-Educated-Hi incW-Educated-Hi incDon’t tell PCP Don’t tell PCP (40%)(40%)

OTA: <30% procedures used in conventional OTA: <30% procedures used in conventional medicine have undergone RCTsmedicine have undergone RCTs (randomized (randomized

clinical trials)clinical trials)


Griffin IMC/Integrative Medicine Center

MassageMassageAcupunctureAcupunctureMeditationMeditation

ChiropracticChiropracticNutritional supplementsNutritional supplements

Aroma therapyAroma therapy


9. Healing Healing Environments: Environments:

Architecture andArchitecture and Design ConduciveDesign Conducive

to Healthto Health

“Planetree Look”

Woods and natural materialsWoods and natural materialsIndirect lightingIndirect lighting

Homelike settingsHomelike settings

Goals: Goals: Welcome patients, friends and Welcome patients, friends and family … Value humans over technology .. family … Value humans over technology .. Enable patients to participate in their care Enable patients to participate in their care

… Provide flexibility to personalize the … Provide flexibility to personalize the care of each patient … Encourage care of each patient … Encourage

caregivers to be responsive to patients … caregivers to be responsive to patients … Foster a connection to nature and beautyFoster a connection to nature and beauty


SoundSoundTextureTextureLightingLighting

ColorColorSmellSmellTasteTaste

Sacred spaceSacred spaceSource: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Access to nurses station:

“Happen to”“Happen to”vs

“Happen with”“Happen with”Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Conclusion: Conclusion: Caring/Growth Caring/Growth “Experience“Experience””

Care!/Love!/Spirit!Care!/Love!/Spirit!

Self-Control!Self-Control!

Connect!/learn!/Connect!/learn!/involve!/Engage!involve!/Engage!

Understanding!/Growth! Understanding!/Growth!

De-stress!/heal! De-stress!/heal!

Whole patient & family Whole patient & family & friends! & friends!

be well!/stay well!be well!/stay well!

F.Y.I.F.Y.I.

Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results:

Financially successful. Financially successful. Expanding programs-Expanding programs-

physically.physically. Growing market Growing market share. share. Only hospital in Only hospital in

“100 Best Cos to Work for”—“100 Best Cos to Work for”—7 consecutive years, 7 consecutive years,

currently #6.currently #6.

—“Five-Star Hospitals,” Joe Flower, strategy+business (#42)

Learn more about Planetree/ Learn more about Planetree/ The Planetree Alliance:The Planetree Alliance:

www.planetree.orgwww.planetree.org

EXEXCELLE CELLE ALWALWAYSAYS..

X.always MASTER PART TWO 10 MARCH 2007. Tom Peters’ X25* EXCELLENCE. ALWAYS. XAlways.MASTER/PART...

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