Tom Peters Re-Imagine! Business Excellence in a Disruptive Age 06.25.2004 Slides at
tompeters.com Uncertainty is the only thing to be sure of. Anthony Muh, head of investment in Asia, Citigroup Asset Management If you dont like change, youre going to like irrelevance even less. General
Eric Shinseki, Chief of Staff, U. S. Army What is it that distinguishes the thousands of years of history from what we think of as modern times? The answer goes way beyond the progress of science, technology, capitalism and democracy. The revolutionary idea that defines the boundary between modern times and the past is the mastery of risk: the
notion that the future is more than a whim of the gods and that men and women are not passive before nature. [ Thinkers like Luca Paccioli, Jacob Bernoulli and Abraham de Moivre] converted risk-taking into one of the prime catalysts that drives modern Western society and converted the future from an enemy into an opportunity.Peter Bernstein, Against the Gods: The Remarkable Story of Risk
Unless nimble and sophisticatede risk management systems are in place, the firm will be unable to benefit from revenue growth. There is a hell of a paradox. We try to model risk scenarios but end up instead increasing the complexity of the business to the point where it is almost unmanageable.
Source: IBM Business Consulting Services/The Global CEO Study 2004 We have no future because our present is too volatile. We have only risk management. The spinning of the given moments scenarios. Pattern recognition. from William Gibson,
Pattern Recognition Biases. Importance of Success Factors by Various Gurus/Estimates by Tom Peters Strategy Systems Passion Execution Porter
50% 20 15 15
Drucker 35% 30 15 20
Bennis 25% 20 30
25 Peters 15% 20 35
30 In Toms world its always better to try a swan dive and deliver a colossal belly flop than to step timidly off the
board while holding your nose. Fast Company /October2003 Successful Businesses Dozen Truths: TPs 30-Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the BS that Marks Normal Industry Behavior.
5. A Maniacal Bias for Execution and Utter Contempt for Those Who Dont Get It. 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. Reward Excellent Failures. Punish Mediocre Successes.
11. Courage to Stand Alone on Ones Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of the power of a Good Story (Brand Power). Kevin Roberts Credo 1. Ready. Fire! Aim. 2. If it aint broke ... Break it! 3. Hire crazies.
4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation! Sir Richards Rules:
Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune/10.03 Its no longer enough to
be a change agent. You must be a change insurgentprovoking, prodding, warning everyone in sight that complacency is death. Bob Reich Purpose.
It is the foremost task and responsibility of our generation to re-imagine our enterprises, private and public. from the back cover, Re-imagine!
Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: Who do we intend to be? Not What are we going to do? but Who do we intend to be? Max De Pree, Herman Miller
The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
Joe J. Jones 1942 2003 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM! T. J. Peters
1942 2--- HE WAS A PLAYER! Characteristics of the Also rans* Minimize risk Respect the chain of command
Support the boss Make budget *Fortune, article on Most Admired Global Corporations 60 30 = 90 60* *90 60 > 60 30 (??) I. NEW BUSINESS.
NEW CONTEXT. Montgomery Ward Kmart Sears Macys DEC Wang Compaq Chase Manhattan American Motors Chrysler U. S. Steel Bethlehem Steel AT&T Soviet Union
Wal*Mart Dell Microsoft U.S.A. 1. Re-imagine Everything: All Bets Are Off. Mount Madness v.2004
Perfect Storm X Corporate Mal-adaptivity Jobs Technology Globalization
War, Warfighting & Security Jobs New Technology Globalization War, Warfighting & Security
In a global economy, the government cannot give anybody a guaranteed success story, but you can give people the tools to make the most of their own lives. WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History 14 MILLION
service jobs are in danger of being shipped overseas The Dobbs Report/USN&WR/11.03/re new UCB study Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.04 When I was growing up, my parents used to say to me: Finish your dinnerpeople in China are starving. I, by contrast, find myself wanting to say to my daughters: Finish your homeworkpeople in China
and India are starving for your job. Thomas Friedman/06.24.2004 Siemens Total (94 to 04), 376K to 415K; Germany, 218K to 167K 6X Prague (Today its Hungary, tomorrow itll be Lithuania and EstoniaIG Metall rep)
Assembly-line jobs are not the only ones at risk; software work is next. Source: BusinessWeek/05.2004 One Singaporean worker costs as much as 3 in Malaysia 8 in Thailand 13 in China
18 in India. Source: The Straits Times/08.18.03 Thaksinomics (after Taksin Shinawatra, PM)/ Bangkok Fashion City/ managed asset reflation (add to brand value of Thai textiles by demonstrating flair and design excellence)
Source: The Straits Times/03.04.2004 The proper role of a healthily functioning economy is to destroy jobs and to put labor to use elsewhere. Despite this truth, layoffs and firings will always sting, as if the invisible hand of free enterprise has slapped
workers in the face. Joseph Schumpeter --79% of U.S. jobs in structurally changed professions (permanently eliminated jobs) (40K of 160K U.S. IBM) --As we trade we release more labor from the service sector because our highly skilled and highly paid workers lose their competitive advantage. So we go to the next big thing. We
specialize in innovation. We develop new products and start new industries. (Erica Groshen, labor economist Fed of NY) Source: CNN/Money/01.07.2004 There is no job that is Americas God-given right anymore.
Carly Fiorina/ HP/ 01.08.2004 America, like everyone else, must get used to being a loser as well as a gainer in the global economy. In the end, the 21st century is unlikely to be the American
Century. When the Chinese Consumer Is King/New York Times/12.14.2003. The notion that God intended Americans to be permanently wealthier than the rest of the world, that gets less and less likely as time goes on. Robert Solow, Nobel laureate in economics/New York Times/12.14.2003
In Store: International Equality, Intranational Inequality The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been
enjoyed by residents of advanced industrial societies throughout the 20th century. James Davidson & William Rees-Mogg,The Sovereign Individual WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES? Headline/ Fortune/ 11.03 (We should finally admit that we do not and cannot know, and regard that fact with serenity
rather than anxiety.) Either we modernize or we will be modernized by the unremitting force of the markets. Gerhard Schroeder + People skills & emotional intelligence (financial service
sales, 78%/248K; RNs, 28%/512K; lawyers, 24%/182K) Imagination & creativity (architects, 44%/60K; designers, 43%/230K; photographers, 38%/50K) Analytic reasoning (legal assts, 66%/159K; electronic engs, 28%/147K; computer operators, 55%/367K) Source: Where the Jobs Are/NYT/05.13.2004/data 1994-2004 Formulaic intelligence (health record clerks, 63%/36K; secretaries & typists, 30%/1.3M; bookkeepers,
13%/247K) Manual dexterity (sewing machine ops, 50%/347K; lathe ops, 49%/30K; butchers, 23%/67K) Muscle power (timber cutters, 32%/25K; farm workers, 20%/182K) Source: Where the Jobs Are/NYT/05.13.2004/data 1994-2004 Over the last decade the biggest employment gains came in occupations that rely on people
skills and emotional intelligence and among jobs that require imagination and creativity. Trying to preserve existing jobs will prove futile trade and technology will transform the economy whether we like it or not. Americans will be better off if they strive to move up the hierarchy of human talents. Thats where our future lies. Michael Cox, Richard Alm and Nigel Holmes/Where the Jobs Are/NYT/05.13.2004
Jobs Technology Globalization War, Warfighting & Security Behind Surging
Productivity: The Service Sector Delivers. Firms Once Thought Immune to Boosting Worker Output Are Now Big Part of the Trend Headline/WSJ/11.03 A bureaucrat is an expensive
microchip. Dan Sullivan, consultant and executive coach E.g. Jeff Immelt: 75% of admin, back room, finance digitalized in
3 years. Source: BW (01.28.02) UPS used to be a trucking company with technology. Now its a
technology company with trucks. Forbes, upon naming UPS Company of the Year in Y2000 <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift
1800s: > prior 900 years 1900s: 1st 20 years > 1800s 2000: 10 years for paradigm shift 21st century: 1000X tech
change than 20th century (the Singularity, a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history) Ray Kurzweil We found that the pace of development from one societal type to another is
accelerating. The agricultural society originated 10,000 years ago, the industrial society between 200 and 100 years ago, the information-based society 20 years ago. Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business Unless mankind redesigns itself by changing our DNA
through altering our genetic makeup, computergenerated robots will take over the world. Stephen Hawking, in the German magazine Focus What strategic motto will dominate this transition from nation-state to marketstate? If the slogan that animated the liberal, parliamentary nation-states was make the world safe for democracy, what
will the forthcoming motto be? Perhaps making the world available, which is to say creating new worlds of choice and protecting the autonomy of persons to choose. Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History better material welfare vs. maximize
the opportunity of its people Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History I genuinely believe we are living through the greatest intellectual
moment in history. Matt Ridley, Genome In 25 years, youll probably be able to get the sum total of all human knowledge on a personal device. Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T] [Barrons 11.13.2000] A California biotechnology company has put the entire sequence of the human genome on a single chip, allowing researchers to conduct on the complex relationships between
the 30,000 genes that make up a human being in a single experiment. Page 3, Financial Times/10.03.2003 Sequenom/David Ewing Duncan/Wired11.02 Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification process. This, Im told, is the first time a healthy human has ever been screened for the
full gamut of genetic-disease markers. On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests. You cant look at humanity separate from machines; were so intertwined were almost the same species, and the difference is getting smaller. Help! Theres nobody in the
cockpit. In the future, will the airlines no longer need pilots? Grumman Global Hawk/ 24 hours/ Edwards to South Australia Source: The Economist/12.21.2002 Theres going to be a
fundamental change in the global economy unlike anything we have had since the cavemen began bartering. Arnold Baker, Chief Economist, Sandia National Laboratories Jobs Technology
Globalization War, Warfighting & Security Asias rise is the economic event of our age. Should it proceed as it has over the last few decades, it will bring the two centuries of
global domination by Europe and, subsequently, its giant North American offshoot to an end. Financial Times (09.22.2003) The world has arrived at a rare strategic inflection point where nearly half its populationliving in China, India and Russiahave been integrated into the
global market economy, many of them highly educated workers, who can do just about any job in the world. Were talking about three billion people. Craig Barrett/Intel/01.08.2004 Cost of a Programmer, per IBM
China: $12.50 per hour USA: $56 per hour Source: WSJ/01.19.2004 We erect walls to foreign trade and even discourage job-displacing innovations. But time and again through our history, we have discovered merely to preserve the
comfortable features of the present, rather than reaching for new levels of prosperity, is a sure path to stagnation. Alan Greenspan/03.12.2004 China Roars! The World Must
Learn to Live with a Wide-awake China Headline/FT/11.03 Chinese Industrial Growth Rate Slows! April 03 to April 04: 19.1%
May 03 to May 04: 17.5% Source: NYT/06.11.04 China has become a manufacturing hub for the rest of the world in low-end labor-intensive goodsand the rest of the world is becoming a manufacturing hub for China in high-end, capital-intensive goods. China may be a threat to certain parts of the global supply chain that rely on low-cost labor, but it
represents an even greater opportunity via production-efficiency gains, economic welfare gains and long-term dynamic potential. Its booming exports are more than matched by booming industrial imports and foreign investment opportunities. It has become the new engine of global growth. Source: Glen Hodgson & Mark Worrall/Export Development Canada, in China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of Total Global Growth in 2002. Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003 1998-2003: 45,000,000 layoffs in state sector; offset by $450B in
foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico, 15% in Korea. Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003 50% of output from private firms, 37% from state-owned
firms; 80% of workforce (incl. rural) now in private employ. Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003 Population growth = 1%; two-thirds of housing privately owned, 90% of
urban Chinese own a home (vs. 61% in Japan) Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003 200 cities with >1,000,000 population. Source: China Takes Off, David Hale & Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003 Shanghai. 17 million people. $10,000 p.c. (10X China). 2000-2003: 30% p.a. growth. Source: Washington Post/6.130.04
200,000,000 unemployed; must create 20,000,000 jobs per year to offset layoffs; 400,000,000 elderly Chinese by 2030 (currently no pension funds). Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003 397,000,000 fixed phone
lines = 90X since 1989. Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003 2003: China-Hong Kong leading producer in 8 of 12 key consumer
electronic product areas (>50%: DVDs, digital cameras; >33.33%: DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs, PDAs, car stereos). Source: China Takes Off, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
When the Chinese Consumer Is King: Americas mass market is second to none. Someday it will just be second. Headline, New York Times/12.14.2003 As China becomes the worlds
factory and Flextronics becomes the biggest electronics manufacturer in China, policy makers and analysts wonder whether there will be a future for manufacturing in Singapore, Malaysia, North America or Europe. Asia Inc./02.2004
Going Global: Flush with billions in foreign reserves, China is embarking on a buying spree Cover/ Newsweek/ 03.01.04/ on Chinas aggressive offshore acquisition activity (buying brands, technology, etc.) Chinese Offshore Tourists
93: 3M 03: 21M Steel: China 20X EU.
Source: Newsweek/05.2004 World economic output: U.S.A., 21%; EU, 16%; China, 13% (2X since1991) Source: New York Times/12.14.2003
Indian GDP/1990-2002: Ag, 34% to 21%; services, 40% to 56% Source: The Economist/02.04 Level 5 (top) ranking/Carnegie Mellon Software Engineering
Institute: 35 of 70 companies in world are from India Source: Wired/02.04 GE is a champion of Indias scientists, technicians, business analysts and graduates, thousands of whom work at the U.S. conglomerates offshore service
centers in India. They are the low-cost, high capability vanguard of GEs outsourcing to India. Along the way, GE has transformed its cost structure, enhanced its ability to provide technology services and incubated a rare world-class industry in India. FT/06.03.03 Forget India, Lets
Go to Bulgaria Headline, BW/03.04, re SAP, BMW, Siemens et al. near-shoring CLONING COLLEGE: South Koreas biomedical researchers,
unhampered by politics, do world-class research on the cheap Headline, Newsweek/03.01.04 Jobs Technology
Globalization War, Warfighting & Security The worlds new dimension (computers, Internet, globalization, instantaneous communication, widely available instruments of mass
destruction and so on) amounts to a new metaphysics that, by empowering individual zealots or agitated tribes with unappeasable grievances, makes the world unstable and dangerous in radically new ways. Lance Morrow/Evil The Breaking of Nations: Order and Chaos in the
Twenty-first Century Robert Cooper (as interpreted by Tom Peters) This is a dangerous world and it is going to become more dangerous. We may not be interested in chaos but chaos is interested
in us. Source: Robert Cooper, The Breaking of Nations: Al-Qaida Said to have 18,000 Militants for Raids Source: AP/05.25.2004/from International Institute for Strategic Studies annual survey of world affairs
What happened after 1945 was not so much a radically new system as the concentration and culmination of the old one. Robert Cooper, on the Cold War, from The Breaking of Nations: Order and Chaos in the Twenty-first Century What has been emerging into the
daylight since 1989 is not a rearrangement of the old system but a new system. Behind this lies a new form of statehood, or at least states that are behaving in a radically different way from the past. Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century
The image of peace and order through a single hegemonic power center [is wrong]. It was not the empires but the small states that proved to be a dynamic force in the world. Empires are illdesigned for promoting change. Holding an empire together requires an authoritarian political style; innovation leads to instability. Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first
Century Read This! The new century risks being overrun by both anarchy and technology. The two great destroyers of history may reinforce each other. Both the spread of terrorism and that of weapons of mass destruction point to a world in which Western governments are losing control. The spread of the technology of
mass destruction represents a potentially massive redistribution of power away from the advanced industrial (and democratic) states and toward smaller states that may be less stable and have less of a stake in an orderly world; or more dramatically still, it may represent a redistribution of power away from the state itself and towards individuals, that is to say terrorists or criminals. In the past to be damaging, an ideological movement had to be widespread to recruit enough support to take on authority. Henceforth, comparatively small groups will be able to do the sort of damage which before only state armies or major revolutionary movements could achieve. A
few fanatics with a dirty bomb or biological weapons will be able to cause death on a scale not previously envisaged. Emancipation, diversity, global communicationall of the things that promise an age of riches and creativity could also bring a nightmare in which states lose control of the means of violence and people lose control of their futures.Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century Reflect.
Before we can talk about the security requirements for today and tomorrow, we have to forget the security rules of yesterday. Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century
IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. Al-Qaeda represents a new and profoundly dangerous kind of organizationone that might be called a virtual state. On September 11 a virtual state proved that modern societies are
vulnerable as never before.Time/09.09.2002 The deadliest strength of Americas new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack.
Business as usual wont do it, he said. His answer is to develop swifter, more lethal ways to fight. Big institutions arent swift on their feet in adapting but rather ponderous and clumsy and slow. The New York Times/09.04.2002 From:
To: Weapon v. Weapon Org structure v. Org structure Our military structure
today is essentially one developed and designed by Napoleon. Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff The organizations we created have become tyrants. They have taken control, holding us fettered, creating
barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational Limits.
In an era when terrorists use satellite US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont talk to each other. phones and encrypted email,
Boston Globe (09.30.2001) Erics Army Flat. Fast. Agile. Adaptable. Light But Lethal.
Talent/ I Am an Army of One. Info-intense. Network-centric. Float like a butterfly. Sting like a bee. Ali
To fight terrorism with an army is like trying to shoot a cloud of mosquitoes with a machine gun. Review of Terror in the Name of God/NYT/11.2003
Rather than have massive armies that people can go along and inspect, it is now about having rapidly deployable expediency forces that can be dropped by land, sea or air and with full support. MoD official, on Defense Secretary Geoff Hoons defense white paper (12.2003)
Palmisano is pushing IBMs ability to assemble SWAT teams of hardware, software services, research and sales people to cure customers headaches. Fortune/06.14.04 We must not only transform our armed forces
but the Defense Department that serves them by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be validated, but rather anticipates them before they appear and
develops new capabilities to dissuade them and deter them. Donald Rumsfeld, Foreign Affairs Boyd OODA Loop/Boyd Cycle Unraveling the competition/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ So quick it is
disconcerting (adversary over-reacts or under-reacts)/ Winners used tactics that caused the enemy to unravel before the fight (NEVER HEAD TO HEAD) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Fast Transients Buttonhook turn (YF16:
could flick from one maneuver to another faster than any aircraft) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo
and the rapid exploitation of opportunity./ Arrange the mind of the enemy.T.E. Lawrence/ Float like a butterfly, sting like a bee.Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) F86 vs. MiG/Korea/10:1
Bubble canopy (360 degree view) Full hydraulic controls (The F86 driver could go from one maneuver to another faster than the MiG driver) MiG: faster in raw acceleration and turning ability; F86: quicker in changing maneuvers BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
Maneuverists BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) All Bets Are Off! There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate. Steve Case We are in a
brawl with no rules. Paul Allaire S.A.V. Strategy meetings held once or twice a year to Strategy
meetings needed several times a week Source: New York Times on Meg Whitman/eBay How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasisa regulated, engineered world? Or do we embrace dynamisma world of constant creation, discovery and competition? Do we value stability and
control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles, stasis and dynamism, increasingly define our political, intellectual and cultural landscape. Virginia Postrel, The Future and Its Enemies
Lets competeby training the best workers, investing in R & D, erecting the best infrastructure and building an education system that graduates students who rank with the worlds best. Our goal is to be competitive with the best so we both win and create jobs. Craig Barrett
(Time/03.01.04) The Winning Edge: Peters Big6 1. Research-Innovation 2. Entrepreneurial Attitude & Support (Especially from Capital Markets) 3. Creative (Obstreperous) Education 4. Free Trade-Open Markets 5. Individual Self-reliance (& Supports
Therefore) 6. Cutting-edge Infrastructure How Nations Become Wealthy 1. Property rights 2. Scientific rationalism 3. Capital markets 4. Fast and efficient communications
and transportation Source: The Birth of Plenty: How the Prosperity of the Modern World Was Created, William Bernstein 2. Re-imagine Permance: The Destruction Mandate.
It is generally much easier to kill an organization than change it substantially. Kevin Kelly, Out of Control Wealth in this new regime flows directly from innovation, not
optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown. Kevin Kelly, New Rules for the New Economy C.E.O. to
C.D.O. Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of 57 were
alive in 97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They
found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.Financial Times/11.28.2002 Survivors underperform.
Its just a fact: Dick Foster Rate of Leaving F500 1970-1990: 4X
Source: The Company, John Micklethwait & Adrian Wooldridge (1974-200: One-half biggest 100 disappear) Far from being a source of comfort, bigness became a code for inflexibility. John
Micklethwait & Adrian Wooldridge, The Company Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more
and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership. Clayton Christensen, The Innovators Dilemma The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically. Peter Drucker, Business 2.0 Forget>Learn
The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock
Success Kills! The more successful a company, the flatter its forgetting curve. Gary Hamel and C.K. Prahalad When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of Goldman Sachs Investment Policy Im sure there are success stories out there, but at this moment I draw a blank. Committee, answered:
Mark Sirower, The Synergy Trap Conglomerates dont work. James Surowiecki, The New Yorker (07.01.2002) MERGERS: Why Most Big Deals Dont Pay Off. A BusinessWeek analysis
shows that 61% of buyers destroyed shareholder wealth. BusinessWeek/10.14.2002 Mergers and acquisitions get the headlines, but studies show they often end up destroying shareholder value instead of creating it. Thats one reason why organic growth is so prized by corporations and investors. In fact, if you compare the stock performance
of a new index of 23 companies that are masters of organic growth to the S&P500, the Organic Growth Index beat the S&P500 handily, 31% vs. 22% over the year ending January 2004. And looking further back at a five-year period ending in 2002, the OGI walloped the S&P500, 25% vs. 3%. Fortune.com/06.03.2004 (The OGI includes Wal*Mart, Sysco, Harley-Davidson, Bed, Bath & Beyond, NVR) Market Share, Anyone?
240 industries; market-share leader 29% is ROA leader of the time Profit / ROA leaders: aggressively weed out customers who generate low returns
Source: Donald V. Potter, Wall Street Journal Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
The $58B hostile bid by Sanofi-Synthelabo for Aventis has been greeted skeptically, as has the news that Novartis may counterbid. Few investors believe that Big Pharma can compensate for a deficit of new drugs by getting bigger. Some suspect the converse is true: that size has made them sluggish. That
has led to some thinking the unthinkable: that pharmaceutical companies should leave drug discovery to biotech companies and focus their efforts on development and marketing. Financial Times/03.2004 Active mutators in placid times tend to die off. They are selected against.
Reluctant mutators in quickly changing times are also selected against. Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors Survival of the Fittest Not the Fattest/John Kay/FT03.27.2003 I have heard it from people who make pharmaceuticals and from people who make defense equipment. From executives in utilities and executives in advertising. Among
banks and law firms. .. They all expect their industry to develop the way the car industry has. In an increasingly globalized marketplace, maturing industries will become steadily more concentrated. Only a small number of big companies will survive. There is one problem with these analogies. What is said about the motor industry is not true.The peak of concentration in the automobile industry was reached in the early 1950s and since then there has been a substantial decline. However you look at it, small carmakers have been steadily gaining market share at the expense of large ones. Back in the 1960s, the 10 largest carmakers had a market share of 85 percent;
today it is about 75 percent. Concentration has fallen, even though weak firms have been repeatedly absorbed through mergers. As markets evolve, differentiation becomes steadily more important. Success in the motor industry comes not from size or scale, but from developing competitive advantages in operations and marketing those advantages internationally. The same is true in pharmaceuticals and defense equipment, utilities and banking, telecommunications and media. Lessons from the Bees!
Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Natures] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for mergings sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What
the bees are telling us is that the corporate world has got it all wrong. David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK] The Industrial Revolution was about scale: vast factory complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers
such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. Americas military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points. Robert Kaplan, Warrior Politics
TP on Acquisitions 1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.) 2. Big (GE, Cisco, Omnicom) acquires small/specialist = Good if you can retain Top Talent. 3. Odds on achieving projected synergies among Mixed Big cultures: 10%. 4. Max Scale Advantages are achieved at a smaller size than imagined.
5. Attacked by Big, Mediocre Medium marries Mediocre Medium to bulk up. Result: Big Mediocrity or worse. 6. Any sizeif Great & Focusedcan win, locally or globally. 7. Increasingly, Alliances deliver more value than mergers and clearly abet flexibility. Winning the Merger Game Is Possible --Lots of deals --Little deals
--Friendly deals --Stay close to core competence --Strategy is easy to understand Source: The Mega-merger Mouse Trap/Wall Street Journal/02.17.2004/David Harding & Sam Rovit, Bain & Co./re Comcast-Disney Most of our predictions are based
on very linear thinking. Thats why they will most likely be wrong. Vinod Khosla, in GIGATRENDS, Wired 04.01 The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
The secret of fast progress is inefficiency, fast and furious and numerous failures. Kevin Kelly RM: A lot of companies in the
Valley fail. RN: Maybe not enough fail. RM: What do you mean by that? RN: Whenever you fail, it means youre trying new things. Source: Fast Company The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo (03.02) ... natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of
death ... To invent the human mind ... The Cobra Event Axiom (Hypothesis): We have been screwed by Benchmarking Best Practice C.I./Kaizen. Axiom (Hypothesis): We need
Masters of Discontinuity/ Masters of Ambiguity in discontinuous/ambiguous times. Organize for performance & customer satisfaction.
Disorganize for renewal & innovation. Rose gardeners face a choice every spring: how to prune our roses. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. You will reduce each rose plant to a maximum of three stems. This represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the
the roses core business. However, if this is an unlucky year [late frost, deer, green-fly invasion], you may lose the main stems or the whole plant! Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will leave more stems on the plant. You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous
restructuring of the plant. The policy of tolerance admittedly wastes resourcesthe extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier. Tolerance of internal weakness, ironically, allows the rose to be stronger in the long run.Arie De Geus, The Living Company Japans Science Gap * Rice farming culture: uniqueness suppressed. Govt control of R & D. Promotion based on
seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. bold leaps. Lack of competition and critical evaluation (peer review). Syukuro Manabe: What we need to create is job insecurity rather than security to make people compete more. *Hideki Shirakawa, Nobel laureate, chemistry December 2000: Swiss House
for Advanced Research & Education. Cambridge, Massachusetts. Xavier Comtesse: You never hear a Swiss say, I want to change the world. We need to take more risks. The Word(s) on Vitality:
Gary Hamel Sell By [jettison old crap] Spin Out [support entrepreneurs] Spin In [buy young firms] No Wiggle Room! Incrementalism
is innovations worst enemy. Nicholas Negroponte Just Say No I dont intend to be known as the King of the Tinkerers.
CEO, large financial services company Perfection is achieved only by institutions on the point of collapse. C. Northcote Parkinson Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big Things. Roger Enrico, former Chairman, PepsiCo Sysco! 2A. Yo, Jim Collins .
Or: Toms Case for Technicolor! intrepid, unprincipled, reckless, predatory, with boundless ambition,
civilized in externals but a savage at heart. Herman Melville on JPJ: intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart. from Evan
Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy Huh? Humility: The Surprise Factor in Leadership bosses with Gungho Qualities and Charisma May Be Out of Fashion Headline/FT/ re JCollins/10.03
Jim & Tom. Joined at the hip. Not. I. Good to Great II. Built to Last III. Quiet, Humble Leaders
I. Good to Great II. Built to Last III. Quiet, Humble Leaders Good to Great: Fannie Mae Kroger Walgreens Philip Morris Pitney Bowes Abbott Kimberly-Clark Wells Fargo
SET THE AGENDA. Great Companies (Period.) AGENDA SETTERS: Set the Table/ Pioneers/ Questors/ Adventurers
US Steel Ford Macys Sears Litton Industries ITT The Gap Limited Wal*Mart P&G 3M Intel IBM Apple Nokia Cisco Dell MCI Sun Oracle Microsoft Enron Schwab GE Southwest Laker People Express Ogilvy Chiat/Day Virgin eBay
Amazon Sony BMW CNN I. Good to Great II. Built to Last III. Quiet, Humble Leaders Built to Last v. Built to Flip The problem with Built to Last is that its a romantic notion. Large companies are
incapable of ongoing innovation, of ongoing flexibility. Increasingly, successful businesses will be ephemeral. They will be built to yield something of value and once that value has been exhausted, they will vanish. Fast Company But what if [former head of strategic planning
at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short
space of time, rather than to live forever. Kjell Nordstrm and Jonas Ridderstrle, Funky Business The difficulties arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourishand old ones to die a timely death. We believe that most
corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. The current apocalypsethe transition from a state of continuity to state of discontinuityhas the same suddenness [as the trauma that beset civilization in 1000 A.D.] Richard Foster & Sarah Kaplan, Creative Destruction (The McKinsey Quarterly)
Warren Bennis & Patricia Ward Biederman/ Great Groups Dont Last Very Long! Organizing Genius: W.A. Mozart
1756 1791 HE CHANGED THE WORLD AND ENRICHED HUMANITY Jane Jacobs: Exuberant
Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction. I. Good to Great II. Built to Last III. Quiet, Humble Leaders
Huh? Quiet, workmanlike, stoic leaders bring about the big Wellington Nelson Disraeli Churchill
Montgomery Thatcher Humble Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U.S. Grant/W.T. Sherman TR/FDR/LBJ/RR/JFK Patton/Monty/Halsey M.L. King/C. de Gaulle/M. Gandhi/W. Churchill
Picasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson H. Clinton/G. Steinem/I. Gandhi/G. Meir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/ S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/ T.A. Edison Rummy/Norm/Henry/Wolfie Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/ Carrie Chapman Catt/Alice Paul/Anna Elizabeth
Dickinson/Arabella Babb Mansfield/Margaret Sanger Audie Murphy was the most decorated soldier in WW2. He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won
the Good Conduct medal. Men with no vices have very few virtues. A. Lincoln
Jim Collins vs. Michael Maccoby quiet, workmanlike, stoic vs. larger-than-life leaders/ egoists, charmers, risk-takers with big visions: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates
In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshedand produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce the cuckoo clock. Orson Welles, as Harry Lime, in The Third Man
II. NEW BUSINESS. NEW TECH. 3. Re-imagine IS/ IT/ the Web: No Room for Wimps!
E-commerce is happening the way all the hype said it would. Internet deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it is very, very early. We cant even glimpse ITs potential in changing the way people work and live. Andy Grove
(BusinessWeek/August 2003) 100 square feet Dells OptiPlex Facility Big Job: 6
to 8 hours. (80,000 per day) Parts Inventory: 100 square feet.
Productivity! McKesson 2002-2003: Revenue +$7B Employees +500 Source: USA Today/06.14.04 Invisible Supplier Has
Penneys Shirts All Buttoned Up: From Hong Kong, It Tracks Sales, Restocks Shelves, Ships Right to the Store. Headline, Wall Street Journal (09.11.03) Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to
X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer thats pre-programmed. If the physician wants, well go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away . David
Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002) MIT Everywhere: EVERY LECTURE, EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL GEEKS GETTING AN MIT EDUCATION, OPEN SOURCESTYLE. Headline/Wired/09.03
Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used
satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys command and control) and working directly with the real players. The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.Ned Desmond/Broadbands New Killer App/Business 2.0/ OCT2002
The mechanical speed of combat vehicles has not increased since Rommels day, so the difference is all in the operational speed, faster communications and faster decisions. Edward Luttwak, on the unprecedented pace of the move toward Baghdad
The Real News: X1,000,000 TowTruckNet.com e-piphany epicurious.com
flash mobs (!) Impact No. 1/ Logistics & Wal*Mart Dell Amazon.com Autobytel.com FedEx UPS Ryder Cisco Etc. Etc.
Ad Infinitum. Distribution: $400. Wal*Mart: 13%. Autobytel: Source: BW(05.13.2002)
WebWorld = Everything Web as a way to run your businesss innards Web as connector for your entire supply-demand chain Web as spiders web which re-conceives the industry Web/B2B as ultimate wake-up call to commodity producers Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entre, at any size, to Worlds Best at Everything as next door neighbor Inet allows you to
dream dreams you could never have dreamed before! Supposejust supposethat the Web is a new world were just beginning to inhabit. Were like the earlier European settlers in the United States, living on the
edge of the forest. We dont know whats there and we dont know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and
fewer lines of authority. Common sense doesnt hold here, and uncommon sense hasnt yet emerged. David Weinberger, Small Pieces Loosely Joined Message: eCommerce is not a technology play! It is a relationship, partnership,
organizational and communications play, made possible by new technologies. Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust, bottleneckedcommunication, six-layer organization. Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the number of people they employ all of that is wrong for running an ebusiness. Ray Lane, Kleiner Perkins Brand Inside Rules! If I could have chosen not to tackle
the IBM culture head-on, I probably wouldnt have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Lou Gerstner, Who Says Elephants Cant Dance?
I came to see in my time at IBM that culture isnt just one aspect of the game it is the game Lou Gerstner, Who Says Elephants Cant Dance? Read It Closely: We
dont sell We sell speed. insurance anymore. Peter Lewis, Progressive
The New Infantry Battalion/ New York Times/12.01.2002 Pentagons Urgent Search for Speed. 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities. Find-to-hit: 45 minutes to 15 minutes
in just one year. Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive
believed as many as six impossible things before breakfast. Lewis Carroll Hyperlinks subvert hierarchy! The Cluetrain Manifesto [ Words to Live By
Hierarchy is an organization with its face toward the CEO and its ass toward the customer. Kjell Nordstrom and Jonas Ridderstrale, Funky Business] Case:
CRM Amen! The Age of the Never Satisfied Customer
Regis McKenna Anne Busquet/ American Express Not: Age of the Internet Age of Customer Control
Is: The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.
Kjell Nordstrm and Jonas Ridderstrle, Funky Business Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information.
What we are witnessing is a collapse of that advantage, prestige and authority. Michael Lewis, next A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumersraising their
expectations and, in many cases, handing them the controls. [Healthcare] consumers are driving radical, fundamental change. Deloitte Research, Winning the Loyalty of the eHealth Consumer Welcome to D.I.Y. Nation: Changes in business processes will emphasize
self service. Your costs as a business go down and perceived service goes up because customers are conducting it
themselves. Ray Lane, Oracle Psych 101: Strongest Force on Earth? My need to be in perceived control of my universe!
CRM has, almost universally, failed to live up to expectations. Butler Group (UK) FT: The aim [of CRM] is to make customers
feel as they did in the preelectronic age when service was more personal. No! No! No! CGE&Y (Paul Cole): Pleasant Systemic Opportunity. Better job of what we do today vs. Rethink overall
enterprise strategy. Transaction vs. Here We Go Again: Except Its Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3rd; 3.3M; 50% lower
attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; happier and stay with the bank much longer. Source: The Wall Street Journal/10.21.2002 DIM/Self-service Rules! ATMs Checkout
Phones Speedpass The Web (eBay, Amazon, Travelocity, Mapquest, banking et al.) HR, Project management, etc. Minus 1.3M secretaries IS/IT
is strategy! 5% F500 have CIO on Board: While some of the worlds most admired companiesTesco, Wal*Martare transforming the business landscape by including technology experts
on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value. Source: Burson-Marsteller 4. Re-imagine Jobs: The White Collar Bloodbath.
Steel: 75,000,000 tons in 82 to 102,000,000 tons in 02. 289,000 steelworkers in 82 to 74,000 steelworkers in 02. Source: Fortune/11.24.03 108 X 5
vs. 8X1 = 540 vs. 8 (-98.5%) E.g. Jeff Immelt: 75% of admin, back room, finance digitalized in
3 years. Source: BW (01.28.02) The coefficient of friction associated with
the grunge of business is amazing! Michael Schrage A bureaucrat is an expensive microchip. Dan Sullivan, consultant and executive coach
IBMs Project eLiza!* * Self-bootstrapping/ Artilects Deep Blue Redux*: 2,240 EKGs
1,120 heart attacks. Hans Ohlin : 620. Lars Edenbrandts software: 738. (50 yr old chief of coronary care, Univ of Lund/SW)
*Only this time it matters! Probable parole violations: Simple model (age, # of previous offenses, type of crime) beats M.D. shrinks. 100 studies: Statistical formulas > Human In virtually all cases, statistical thinking
equaled or surpassed human judgment.Atul Gawande, judgment. Complications Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computergenerated robots will take over the world. Stephen Hawking, in the German magazine Focus Dont own nothin if you can help it. If you can, rent your shoes. F.G.
Organizations will still be critically important in the world, but as organizers, not employers! Charles Handy The virtual corporation is research, development, design, marketing, financing, legal, and
other headquarters functions with few or no manufacturing capabilities a company with a head but no body. Richard Rosecrance, The Rise of the Virtual State Ford: Vehicle
brand owner (design, engineer, and market, but not actually make) Source: The Company, John Micklethwait & Adrian Wooldridge P&G Hires Out Employee Services to
IBM Burlington Free Press/09.10.03/ on IBMs 10-year, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June) WHERE IS YOUR JOB GOING: writing software, designing chips, reading MRIs, processing mortgages, preparing tax returns, managing
computer networks (etc: GE Capitals 15,000 in Delhi), preparing PP slides for McKinsey (350 in Chennai), equity analysis of U.S. companies (Morgan Stanley) Source: Fortune/11.24.03 No Limits?
Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy Headline, New York Times/06.13.04 (Special intentions, $.90 for Indians, $5.00 for Americans) III. NEW BUSINESS. NEW VALUE
PROPOSITION. 5. Re-imagine the Organization: The Professional Service Firm (PSF) Imperative. Daddy,
what do you do? Sarah: Im a cost center. Daddy: So what will be the
Basic Building Block of the New Org? Every job done in W.C.W. is also done outside for profit!
Answer: PSF! [Professional Service Firm] Department Head to Managing Partner, HR [IS, etc.] Inc.
TP to HRMAC: You are the Rock Stars of the Age of Talent!
DD$21M TP to NAPM: You are the Rock Stars of the B2B Age!
P.S.F.: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot Talent (see below) Adventurous culture Proprietary Point of View (Methodology) W.W.P.F. (100%)/Outside Clients (25%++)
When: Now! BMWs Designworks/USA: >50% from outside work G.M. = The Recruitment and
Development of Top Talent. [Period!] V.C. = Bets on Talent. Bets on Projects. [Period!] Dept. Head I = Sports G.M. Dept. Head II = V.C.
eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Model PSF (1) Translate ALL departmental
activities into discrete W.W.P.F. Products. (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining Centers of Excellence are retained & leveraged to the hilt!
Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve become more than that. We pay for ourselves, and we actually make money for the company. Frank Eichorn,
Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com) 6. Re-imagine Business Basic Value Proposition: PSFs Unbound/ The Solutions Imperative.
Base Case: The Sameness Trap While everything may it is also increasingly the same.
be better, Paul Goldberger on retail, The Sameness of Things, The New York Times When we did it right it was still pretty
ordinary. Barry Gibbons on Nightmare No. 1 Fight til Death! I thought, What a dreadful mission I have in life. Id love to get six-thousand restaurants up to spec, but when I do its Ho-hum. Its bugged me
ever since. Its one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we have created a plethora of ho-hum products and services. Just go fly in an airplane. It could be such an enlightening experience. Ho-hum. We swim in an ocean of ho-hum, and Im going to fight it. Im going to die fighting it. Barry Gibbons
Funky Business: To succeed we must stop being so goddamn normal. In a winner-takes-all world, normal = nothing. Customers will try low cost
providers because the Majors have not given them any clear reason not to. Leading Insurance Industry Analyst The surplus society has a surplus of
similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality. Kjell Nordstrm and Jonas Ridderstrle, Funky Business Companies have defined
so much best practice that they are now more or less identical. Jesper Kunde, A Unique Moment 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 cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats 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 Gameboy 14 years in a row)? Its like trying to drive The thing that all these companies have in common is that they have nothing in common. They are outliers. Theyre on the fringes. looking in the rearview mirror.
Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its 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 takenso its no longer remarkable when you decide to do it. Seth Godin, Fast Company/02.2003 We make over three new product announcements a
day. Can you remember them? Our customers cant! Carly Fiorina 09.11.2000: HP bids
$18,000,000,000 for PricewaterhouseCoopers consulting business! These days, building the best server isnt enough. Thats the price of entry.
Ann Livermore, Hewlett-Packard Systems Integrator of choice. Global Services: Gerstners IBM: $35B. Pledge/99: Business
Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01). [Sam] Palmisanos strategy is to expand techs borders by pushing usersand entire industriestoward radically different business models. The payoff for IBM would be access to
an ocean of revenuePalmisano estimates it at $500 billion a yearthat technology companies have never been able to touch. Fortune/06.14.04 AT&T: President David Dorman: Back to long distance but with bundles of lucrative corporate services for the likes of Merrill
Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers (50%)hold on to high enders. Source: BW/05.20.2002 Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology
4. JV with Sony on crown jewel handsets 5. Net: a wireless specialist that depends on services more than manufacturing, on knowledge more than metal Source: BW/11.04.02 Flextronics
--$14B; 100K employees; 60% p.a. growth (93-00) -- contract mfg to EMS/Electronics Manufacturing Services (design, mfg, logistics, repair); total package of outsourcing solutions (Pamela Gordon, Technology Forecasters) -- The future of manufacturing isnt just in making things but adding value (3,500 design
engineers) Source: Asia Inc./02.2004 Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the customers profitability. Are customers
bottom lines really benefiting from what we provide them? Bob Nardelli, GE Power Systems We want to be the air traffic controllers of electrons. Bob Nardelli, GE Power Systems
Keep In Mind: Customer Satisfaction versus Customer
Success Nardellis goal ($50B to $100B by 2005): move Home Depot beyond selling goods to selling home services. He wants to capture home improvement dollars wherever and however they are spent.
E.g.: house calls (At-Home Service: $10B by 05?) pros shops (Pro Set) home project management (Project Management System a deeper selling relationship). Source: USA Today/06.14.2002 E.g. UTC/Otis + Carrier:
boxes to integrated building systems Units of Coolth Leased AC: Staples
New CEO Ron Sargent: 2X to $20B, in face of Wal*Mart (et al.) via delivery and other services Source: BusinessWeek/08.03 John Deere
Landscapes: This is our future. UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.
ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers) SCS/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank
Source: Fast Company/02.04 No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether its financial security, buying a car, paying for home repairs, or even taking a
dream vacation.Martin Feinstein, CEO, Farmers Group VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. Now Mr. Zell says he will transform the real estate market by turning
those REITs into national brands. Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location. New York Times (12.16.2001) Architecture is becoming a commodity. Winners will be Turnkey
Facilities Management providers. SMPS Exec We are a real estate facilities consulting organization, not just an interior design
firm. Jean Bellas, founder, SPACE (from SMPS Marketer) Omnicom: 60% (of
$7B) from marketing services And the Winners Are Televisions 12% Cable TV service +5% Toys -10% Child care +5% Photo equipment -7% Photographers fees +3%
Sports Equipment -2% Admission to sporting event +3% New car -2% Car repair +3% Dishes & flatware -1% Eating out +2% Gardening supplies -0.1% Gardening services +2% Source: WSJ/05.16.03
IBM/Q3/10.15.03/Rev: +5% Services/Consulting: +11% Software: +5% Hardware: -5% PCs: -2% Technology/Chips: -33%
FEES! FEES! FEES! Cover Story, BW/09.29.03 Turnkey Nation/s HP Sun Farmers Group Northwestern Mutual Financial Network IBM AT&T Ericsson GE Power Systems GE Industrial Systems Ford Siemens Home Depot
Deere UTC Otis UTC Carrier UPS Springs Industries RCI Equity Office Properties Omnicom India Singapore Etc. (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/
Solutions/ Customer Success. Core Logic: 6A. Re-imagine Organizational Barriers: The Solutions25.*
*NO MORE SILOS. NO MORE STOVEPIPES. 1. Its the (OUR!) organization, stupid! 2. Friction free! 3. No STOVEPIPES! 4. Stovepiping is a F.O.Firing Offense. 5. ALL on the web! (ALL = ALL.) 6. Open access!
6. Project Managers rule! (E.g.: Control the purse strings and evals.) 7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.) 8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.) 9. Solutions = Our culture. 10. Partner with B.I.C. (Best-In-Class). Period.
The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational Limits. Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. To
compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. Bill Owens, Lifting the Fog of War
Duh???*: Weve come up with a solution. Weve begun to create a form of communications that is much better than we had before, and thats allowed us to gather better data. Weve finally realized that we have an interplay with other hospitals and with pre-hospital.Dr. Ben Honigman, ER, U. Colorado Hospital, on diverts (Denver Post/05.05.02)
*Internet + Data + Open data exchange + Barrier busting 12. All functions contribute equallyIS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc. 13. Project Management can come from any function. 14. WE ARE ALL IN SALES. PERIOD. 15. We all invest in wiring the customer organization. 16. WE ALL LIVE THE BRAND. (Brand = Solutions.
That MAKE MONEY FOR OUR CUSTOMERPARTNER.) 17. We use the word PARTNER until we all want to barf! 18. We NEVER BLAME other parts of our organization for screw-ups. 19. WE AIM TO REINVENT THIS INDUSTRY! 20. We hate the word-idea COMMODITY. 21. We believe in High tech, High touch.
22. We are DREAMERS. 23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.) 24. If we play the SOLUTIONS GAME brilliantly, no one can touch us! 25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE All Hands affair! KEY WORDS: Partners with our
Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences. WHICH REQUIRES: Total Enterprise Responsiveness beyond functional walls. IV. NEW
BUSINESS. NEW BRAND. 7. Re-imagine Enterprise as Theater I: A World of Scintillating Experiences.
Experiences are as distinct from services as services are from goods. Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage Club Med
is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new me. Source: Jean-Marie Dru, Disruption The [Starbucks] Fix Is on
We have identified a third place. And I really believe that sets us apart. The third place is that place thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager
Guinness as a brand is all about community. Its about bringing people together and sharing stories.Ralph Ardill, Imagination, in re Guinness Storehouse Experience: Rebel Lifestyle!
What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. Harley exec, quoted in Results-Based Leadership WHAT CAN BROWN DO FOR YOU?
When Pete Rozelle ran the league, it was a football business and a good one. Now its truly an entertainment business. Paul Much, Investment Advisor
The Experience Ladder Experiences Services Goods Raw Materials 1940: Cake from flour, sugar (raw materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00 Message:
Experience is the Last 80% P.S.: Experience applies to all work! 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy)
$100.00 I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.
Bob Lutz: Source: NYT 10.19.01 Lexus sells its cars as containers for our sound systems. Its marvelous.Sidney Harman/
Harman International LAN Installation Co. to Geek Squad (2% to 30%/Minn.) From Service to Cause
7X. 730A800P. F12A.* *Plus: WOW Department Kill a Stupid Rule contests, etc. 2001R: 34%; P: 29%; 90-00: 2,048%. Commerce Bank/NJ ($10B). Source: FC05.02. Its All About EXPERIENCES: Trapper to Wildlife Damage-control Professional Trapper: <$20 per beaver pelt.
WDCP: $150/problem beaver; $750-$1,000 for flood-control piping so that beavers can stay. Source: WSJ/05.21.2002 Moving Companies WSJ/08.2003: In Texas, Theyll fill
your empty fridge with brie and wine. An outfit in New York promises quick high-speed Internet hookup. And when Allied Van Lines finishes unloading your couch, theyll have a feng shui expert figure out the right spot. Duet Whirlpool washing machine to
fabric care system white goods: a sea of undifferentiated boxes $400 to $1,300 the Ferrari of washing machines consumer: They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family. machine as aesthetic showpiece laundry room to family studio / designer laundry
room (complements Sub-Zero refrigerator and home-theater center) Source: New York Times Magazine/01.11.2004 1997-2001 >$600: 10% to 18% $400-$600: 49% to 32% <$400: 41% to 50% Source: Trading Up, Michael Silverstein & Neil Fiske
A Bedtime Story, for $20,000/CNN Intl Sleep Products Assn: 20% of matresses sold in 2003 >$1,000 vs. 15% in 2000. Fastest growing segment: $5,000 to $20,000. ISPA exec: The Baby Boomers are getting older, and more affluent. As you get older,
your body changes and those aches and pains develop. So they have the money and the inclination to upgrade. Clients want either the best or the least expensive; there is no in
between. John Dijulius, Secret Car designers need to create a story. Every car provides an opportunity to create an adventure. The Prowler makes you smile. Why? Because its focused. It has a plot, a reason for being, a passion.
Freeman Thomas, co-designer VW Beetle; designer Audi TT Hmmmm(?): Only Words Story Adventure Smile Focus
Plot Passion Hire a theater director, as a consultant or FTE! First Step (?!):
Words! Magician of Magical Moments Maestro of Moments of Truth Recruiter of Raving Fans Impresario of First Impressions Wizard of WOW Captain of Brilliant Comebacks Director of Electronic Customer Experiences
Conductor of Customer Intimacy King of Customer Community Queen of Customer Retention CEO of Ownership Experience Managing Director of After-sales Experience Experience Cirque du Soleil
DO YOU MEASURE UP?* *If not, why not? Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market
will cry out for in the future. There is no lack of physical products to choose between. Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.] Extraction & Goods: Male dominance Services &
Experiences: Female dominance Women dont buy They join them. brands.
EVEolution The Experience Ladder Experiences Services Goods Raw Materials
+ Scintillating Experience 8. Re-imagine Enterprise as Theater II: Embracing the Dream Business. DREAM: A dream is a complete
moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be. Gian Luigi Longinotti-Buitoni
A shipping clerk earning $25,000 a year treats herself to silk pajamas at Victorias Secret. A dual-income couple earning $125,000 orders a $4,000 Viking range for their townhouse even though the developer offered to throw in a perfectly serviceable generic range at no extra charge. These purchases reflect an important worldwide behavioral shift. Consumers today are willing to pay a significant premium for goods and services that are emotionally important to them and that deliver the perceived values of quality, performance and engagement.
But in other categories that arent emotionally important, they become bargain hunters: a passionate Mercedes driver will shop at Target every weekend; a construction worker who splurges on a $3,000 set of Callaway golf clubs will buy store brand groceries. Trading Up: The New American Luxury/Michael Silverstein & Neil Fiske Common Products
Dream Products Maxwell House BVD Payless Hyundai Suzuki Atlantic City New Jersey
Carter Conners CNN Starbucks Victorias Secret Ferragamo Ferrari Harley-Davidson
Acapulco California Kennedy Pele Millionaire Source: Gian Luigi Longinotti-Buitoni The Marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the buzz, the hype, the cult.
Source: Gian Luigi Longinotti-Buitoni Building the Creative Organization Choose a creator: The cultural leader who gives the company an aesthetic point of view. Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion. Prepare vertically: Develop a rigorous understanding
of the product and the client. Develop horizontally: Promote curiosity in unrelated disciplines. Lead emotionally: Engender passionate dedication through vision and freedom. Build for the long haul: Creativity requires a lifetime commitment. Source: Gian Luigi Longinotti-Buitoni
Constantly Magnify Perceived Value Maximize your value-added by fulfilling the dreams of your clients. Only invest in what is valuable for your client. Dont let the short-term results weaken the long-term value of your brand. Balance rigorous control of the financial endeavor with the emotional management of your brand. Build a financial structure that allows risk-taking:
NO RISKSNO DREAMS. Establish long-term price power in order to avoid the trap of the commodity product. Source: Gian Luigi Longinotti-Buitoni (Revised) Experience Ladder Dreams Come True Awesome Experiences
Solutions Services Goods Raw Materials Furniture vs. Dreams We do not sell furniture at Domain. We sell dreams. 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 HORCHOW.COM Furniture. Accessories. Dreams.
The Ritz-Carlton experience enlivens the senses, instills wellbeing, and fulfills even the unexpressed wishes and needs of our guests. from the Ritz-Carlton Credo Safe, On-time and ...
We defined personality as a market niche. We seek to amaze, surprise, entertain. Herb Kelleher, SWA / LUV The sun is setting on the Information Societyeven before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based
society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. The Dream Society is emerging this very instantthe shape of the future is visible today. Right now is the time for decisionsbefore the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services. Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business
In Denmark, eggs from free-range hens have conquered over 50 percent of the market. Consumers do not want hens to live their lives in small, confining cages. They are willing to pay 15 percent to 20 percent more for the story about animal ethics. This is classic Dream Society logic. Both kind of eggs are similar in quality, but consumers prefer eggs with the better story. After we debated the issue and stockpiled 50
other examples, the conclusion became evident: Stories and tales speak directly to the heart rather than the brain. After a century where society was marked by science and rationalism, the stories and values are returning to the scene. Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business Six Market Profiles 1. Adventures for Sale
2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
New Market Realities Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-Buitoni The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf Jensen Trading Up: The New American Luxury, Michael Silverstein & Neil Fiske
9. Re-imagine the Soul of Enterprise: Design Rules! Design Myths. Unconventional [Design] Messages
Not about ... Lumpy Objects! Not about ... $79,000 objects The I.D. [International Design] Forty* Airstream Alfred A. Knopf Apple Computer Amazon.com Bloomberg Caterpillar CNN Disney FedEx Gillette IBM
Martha Stewart New Balance Nickelodeon Patagonia The New York Yankees 3M Etc. * List No. 1, 1999 Unconventional [Design] Messages Not about ... Lumpy Objects!
Not about ... $79,000 objects Design Transforms even the [Biggest] Corporations! TARGET the champion of Americas new design democracy (Time) Marketer of the Year 2000
(Advertising Age) Lady Sensor, Mach3, and $70M on developing the OralB CrossAction toothbrush 23 patents, including 6 for the packaging Source: www.ecompany.com [06.00]
Design2002 LISTERINEs PocketPaks Westins Heavenly Bed
Designs place in the universe. And Tomorrow Fifteen years ago companies competed on price. Now its Tomorrow
its design. quality. Robert Hayes All Equal Except At Sony we assume that all products of our competitors have basically the same
technology, price, performance and Design is the only thing that differentiates one product from another in the marketplace. features. Norio Ohga
Design is treated like a religion at BMW. Fortune The new Beetle fails at most categories. The only
thing it doesnt fail in is drop-dead charm. Jerry Hirshberg, Nissan Design International Object of Desire! Every now and then, a design comes along that radically changes the way we think about a particular object. Case in
point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at. Katherine McCoy & Michael McCoy, Illinois Institute of Technology
The good 10 percent of American product design comes out of big-idea companies that dont believe in talking to the customer. They're run by passionate maniacs who make everybodys life miserable until they get what they want. Bran Ferren, Applied Minds/Wired 1-2001
We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. But to me, nothing could be further from the Design is the fundamental soul meaning of design.
of a man-made creation. Steve Jobs Check Out the Language: Tomorrow its design Design is the only thing
Design is religion ... Drop-dead charm Object of desire Passionate maniacs Fundamental soul Bottom Line. Design is WHAT &
WHY I LOVE. LOVE. I LOVE my ZYLISS
Garlic Peeler! All Time No.1 (TP) Ziplocs Design is WHY I
GET MAD. MAD. Wanted: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!
Design is never neutral. DESIGN is the principal difference between love and hate!
Hypothesis: THE BASE CASE: I am a design fanatic. Though not artistic, I love cool stuff. But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or
detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out or doesnt. Furthermore, its another one of those things that damn few companies put consistently on the front burner. Message (?????): Men
cannot design for womens needs. Perhaps the macho look can be interesting if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means
intuitionits female. Source: Philippe Starck, Harvard Design Magazine (Summer 1998) Step No. 1: NOTEBOOK POWER! [Start recording the awesome & the awful]
User STOP BLAMING YOURSELF! (Don
Norman/Design of Everyday Things) Sometimes I have episodes of wild fury in rental cars. Its not road rage. Its more like design rage. Susan Casey, www.ecompany.com
The Designers Ring For years I thought that Dante should have established a designers ring in his Hell. If any designers product raised a blister, caused a bruise, ripped a stocking, or caused any of the thousand things that frustrate us with the products we use, that designer would be assigned the designers ring in Hell and forced to use that
product for all of eternity. James Pirki, designer and professor, Syracuse University 15 Leading Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4
Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002 There is little evidence that mastery of the knowledge acquired in business schools enhances peoples careers, or that even attaining the MBA
credential itself has much effect on graduates salaries or career attainment. Jeffrey Pfeffer (tenured professor, Stanford GSB/2004) 9A. Re-imagine the Infrastructure of Enterprise: Design = Beautiful Systems.
Fred S.s mediocre thesis. Herb K.s napkin. Great design = One-page business plan (Jim Horan)
The One-page Proposal: How to Get Your Business Pitch onto One Persuasive Page Patrick Riley (Why not one and a half? Why not two? Sorry, its one or nothing. Once the proposal extends past the first page, the battle is lost.)
There Are Lawyers and Then There Are Lawyers: John De Laney/ICM ANYTHING TRULY IMPORTANT CAN BE BOILED DOWN TO RD 1/3 PAGE.
K.I.S.S.: Gordon Bell (VAX 500/50. daddy): Chas. Wang (CA): Behind schedule?
Cut least productive 25%. have. Must hate. / Must design. Must undesign. Systems: Must
Mgt. Team includes EVP (S.O.U.B.) Executive Vice President, Stomping Out Unnecessary Bullshit First Steps: Beauty Contest!
1. Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. 3. Re-invent!
4. Repeat, with a new selection, every 15 working days. Beautiful Aesthetic Triumph Breathtaking Was Deposits may be made by a minor and
withdrawals thereof may be made by a minor without the consent of a parent or guardian, neither of whom, in that capacity, shall have any right to attach or interfere in any manner with such deposits or withdrawals. Is Minors may make deposits and
withdrawals from their accounts without the consent or interference of a parent or guardian. Was This Grievance Procedure must be used if the nature of the complaint deals with the quality of services given to the Member, including complaints about waiting times, physician demeanor and behavior, or adequacy of facilities (as opposed to whether or not a particular
service is a Covered service and what amount, if any, should be paid). Also, this Grievance Procedure will be applied under all circumstances to any Universal Healthcare supplemental products which the Member may have bought independently from this SeniorPlus plan. If the nature of the Members complaint deals with a Covered Service stated in this SeniorPlus or the level of payment associated with this plan, please refer to the Medicare Appeals procedure, stated in Section X. Source: Siegel & Gale
Is If you have a complaint about quality of service received, waiting times, physician behavior, or the adequacy of medical facilities, please use our grievance process. lf you have a complaint about coverage or payment, please use the Medicare Appeals procedure (see Section X). Source: Siegel & Gale
10. Re-imagine the Fundamental Selling Proposition: It all adds up to THE BRAND. The Heart of
Branding WHO ARE WE? WHATS OUR STORY?
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 Companies will thrive on the basis of their stories and myths. Companies will need to understand
to how we work with others. that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton
protests. Brands are not nouns but verbs. Source: Jean-Marie Dru, Disruption ALL BUSINESS MODELS
ARE IN FACT BRAND STATEMENTS! Message: DO THE HOUSEKEEPERS & CLERKS BUY IT?
[ARE YOU V-E-R-Y SURE?] EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT? 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing.
Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD
Law: DRAMATIC DIFFERENCE (Execs Dont Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug Hall 2 Questions: How likely are you to purchase this new product or
service? (95% to 100% weighting by execs) How unique is this new product or service? (0% to 5%*) *No exceptions in 20 years Doug Hall, Jump Start Your Business Brain If you are not one of the major players, you have to take a position that is contrary to the global trend.
We have to ask ourselves: How can we be different? We have to find out what we can be best in the world at. Source: IBM Business Consulting Services/ The Global CEO Study 2004 You do not merely want to be the best of the best. You
want to be considered the only ones who do what you do. Jerry Garcia A great company is defined by the fact that it is not compared
to its peers. Phil Purcell, Morgan Stanley Brand = You Must Care! Success means never letting the competition define you. Instead you have to define yourself based on a
point of view you care deeply about. Tom Chappell, Toms of Maine WHY DOES IT MATTER TO THE CLIENT? EXACTLY HOW DO I
PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ? Brand Promise Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which
we are UNIQUE to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct us/them differences. (5) Try results on your teammates. (6) Try em on a friendly Client. (7) Try em on a
Rules of Radical Marketing Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)
Branding: Is-Is Not Table TNT is not: TNT is: TNT is not: Juvenile
Contemporary Mindless Meaningful Elitist Predictable
Suspenseful Dull Frivolous Exciting
Superficial Powerful Old-fashioned Slow Self-important
Message Is Not >> Is Salt is salt is salt. Right? Not when it blue box comes in a
with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf. Tom Asaker, Humanfactor Marketing
What Can [Cant] Be Branded? Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the
Swiss Army]. And you say, Gang, if they can do it, we can do it. Barry Gibbons V. NEW BUSINESS. NEW MARKETS.
11. Re-imagine the Customer I: Trends Worth Trillion$$$ Women Roar. ????????? Home Furnishings 94% Vacations 92% (Adventure Travel 70%/ $55B travel equipment)
Houses 91% D.I.Y. (major home projects) 80% Consumer Electronics 51% (66% home computers) Cars 68% (90%) All consumer purchases 83% Bank Account 89% Household investment decisions 67% Small business loans/biz starts 70% Health Care 80%
???? 80% Riding Lawnmowers 2/3rds working women/ 50+% working wives > 50%
80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed 1970-1998 Mens median income: +0.6%
Womens median income: + 63% Source: Martha Barletta, Marketing to Women $5+T > Japan 10M/28M/$3.6T > Germany Business Purchasing Power Purchasing mgrs. & agents: 51%
HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women Women-owned Bus. U.S. employees > F500 employees worldwide Source: Martha Barletta, Marketing to Women
New golfers 37% Basketball 13.5M 1 in 27 (70) 1 in 3 (96) 1874? 1874 Jock Strap 1977 Jogbra 1977 ... 25K
1996 42 M Yeow! 1970 1% 2002
50% 91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities Men: Individual perspective. Core
unit is me. Pride in self-reliance. Women: Group perspective. Core unit is we. Pride in team accomplishment. Source: Martha Barletta, Marketing to Women FemaleThink/ Popcorn Men and women dont think the same
way, dont communicate the same way, dont buy for the same reasons. He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.
Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They usually dont like asking where things are. Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly hes ready to buy. For a man, ignoring the price tag is almost
a sign of virility. Paco Underhill, Why We Buy* (*Buy this book!) Shopping: A Guys Nightmare or a Girls Dream Come True? Buy it and be gone
vs. Hang out and enjoy the experience Source: The Charleston [WV] Gazette/06.22.2002 How Many Gigs You Got, Man? Hard to believe Different criteria Every research study weve done
indicates that women really care about the relationship with their vendor. Robin Sternbergh/ IBM Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy;
condescending; insensitive to womens needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women) Women as Healthcare Decision Makers read vociferously want choices
value convenience look for small signs of sensitivity (gowns that close) Source: Cheryl Stone, Rynne Marketing Group Women and Healthcare Women are more dissatisfied Women are frustrated by the way they are treated and spoken to
by physicians Women seek more information Women are more pressed for time Women make most healthcare decisions and purchases Source: Patricia Braus, Marketing Health Care to Women Women and Financial Advisors
Women want ... a plan to be listened to to read about it and think about it Women do not want ... a high-pressure sales pitch Source: Kathleen Boyd, SVP, Wheat First Butcher Singer (now part of Wachovia Securities)
Read This: Barbara & Allan Peases Why Men Dont Listen & Women Cant Read Maps It is obvious to a woman when another woman is upset, while a man generally has to physically witness
tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Resting State: 30%, 90%: A
woman knows her childrens friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps As a hunter, a man needed vision that
would allow him to zero in on targets in the distance whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps
Female hearing advantage contributes significantly to what is called womens intuition and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldnt despair. They are excellent at imitating
animal sounds. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Senses Vision: Men, focused; Women, peripheral. Hearing: Womens discomfort level I/2 mens. Smell: Women >> Men.
Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women Sensitivity to differences: Twice as many card stacks. More contextual, holistic. People powered: Age 3 days, baby girls 2X eye contact.
Source: Martha Barletta, Marketing to Women When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps
Stress* ** Men: Fight or flee Women: Seek the company of friends *Source: UCLA, Female Response to Stress: Tend and Befriend, Not Fight or Flight/Psychological Review **90% of stress research: men
Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.
Judy Rosener, Americas Competitive Secret The Hollywood scripts that men write tend to be direct and linear, while womens compositions have many conflicts, many climaxes, and many endings. Helen Fisher, The First Sex: The Natural
Talents of Women and How They Are Changing the World I only really understand myself, what Im really thinking and feeling, when Ive talked it over with my circle of female friends. When days go by without that connection, I feel like a radio
playing in an empty room. Anna Quindlen Women are more comfortable talking or thinking about people and relationships, while men prefer to contemplate things. research reported in the New York
Times (08.10.2003) Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK) Where the Girls Are: Theyre Online, Solving
Puzzles and Making Up Characters in Narrativedriven Games Headline/WSJ/10.28 Initiate Purchase Men: Study facts & features. Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women
Read This Book EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold EVEolution: Truth No. 1
Connecting Your Female Consumers to Each Other Connects Them to Your Brand The Connection Proclivity in women starts early. When asked, How was school today? a girl
usually tells her mother every detail of what happened, while a boy might grunt, Fine. EVEolution What If What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool
partners? What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with todays skills? EVEolution The New New Jiffy Lube
In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the lets get it fixed fast, no conversation required experience. New JL: Control over her environment. Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability.
EVEolution Women dont buy They join them. brands. EVEolution
Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women 2.6
vs. 21 Cents & Sensibility Our advisory sessions [with women] changed from a purely analytical, male approach to something that starts with the heart
and ends with the figures. Lowes Gets it. 1989: 13%/lumber shop 2002: >50%
War has broken out over your home-improvement dollar, and Lowes has superpower Home Depot on the defensive. Its not-sosecret ploy: Lure women.
Forbes.com Home Depot is still very much a guys chain. But women, according to Lowes research, initiate 80 percent of all homeimprovement purchase decisions, especially the big ticket orders like kitchen cabinets, flooring and bathrooms. We focused on a customer nobody in home improvement has focused on. Dont get me
wrong, but women are far more discriminating than men, says CEO Robert Tillman, 59, a Lowes lifer. Forbes.com Womens Work: Do-ityourself has become do-itherself, and toolmakers are taking notice Headline/San Francisco Chronicle/08.03 Tomboy Tools. E.g.:
smaller, lighter in weight. Tupperware party model. Darcy Winslow is a leading figure in Nike Goddess, a companywide grassroots team whose goal is a once-and-for-all shift in how a high-testosterone outfit sells to, designs for, and
communicates with women. Fast Company/08.2002 Women werent comfortable in our stores. So I figured out where they would be comfortablemost likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have
furniture, not fixtures. Above all, I didnt want it to be girlie. John Hoke, designer, Nike Yes!: Crest Spinoff Targets Womencover story, Ad Age/06.03.02 Crest Rejuvenating Effects.
Chicks in charge team. $50M launch. Packaging. Taste. Features. Mattel Sees Untapped Market for Blocks: Little GirlsHeadline, WSJ/04.06.02 Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello
with interconnecting plastic squares, balls, triangles, squiggles, flowers and sticks, in pastel colors and with rounded cornerswill go beyond Legos linear play patterns. Volvo Teams Up to Build What Women Want: Concept Car Goes for
Great Storage, Easy Maintenance headline/USA Today/12.16.2003/140-person team;80% women Ford Hybrid SUV Wallops Expectations Women
>$100K College Ed Source: USA Today/05.14.04 Not ! Year of the
Woman Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy
Culture Vision Leadership THE BRAND ITSELF! Honey, are you sure you have the kind of
money it takes to be looking at a car like this? STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick. My game is haranguing business leaders
about my fact-based conviction that womens increasing power leadership skills and purchasing power is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Alto resident THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters
Not a Morality Play It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. Were marketing to women entrepreneurs because it is a huge opportunity. Cherie Piebes
27 March 2000: email to TP from Shelley Rae Norbeck I make 1/3rd more money than my husband does. I have as much financial pull in the relationship as he does. Id say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to spend and nobody wants it! If we are single, they say we couldnt catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldnt keep him. If we are widowed, they say we
killed him. Kathleen Brown, on the joys of female political candidacy Psssst! Wanna see my porn collection? Norwegian Law: Boards must have
at least 40% women. Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership Team
In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. I have a responsibility to do the best we can for shareholders. * ** *Source: New York Times/05.05.02 **Wouldnt you love to watch him tell that face-to-face to Margaret Thatcher or Carly Fiorina? (I would.)
Ad from Furniture /Today (04.01): MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that Way Presenting Experts: M = F=
?? 16; (94% = 272) Stupid: Amazing, now that I think about it. A bunch of guys --developers,
architects, contractors, engineers, bankers--sitting around designing shopping centers. And the end users will be overwhelmingly women! Customer is King:
4,440 Customer is Queen: 29 F.Y.I. Women Beat Men
at Art of Investing Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are in and out of stocks more often; women choose Investment Club Returns Women-only clubs 1997 17.9%
Mixed 17.3% Men-only 15.6% Source: National Assoc. Investors Value Line: Top State* Investment Clubs 2000 8 All male 19 Coed
22 All FEMALE * VT & Maine not included; D.C. included JBQ: Stop Treating Women Investors Like Idiots! Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe theyre smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives. Source: Newsweek 01.08.01 Notes to the CEO
--Women are not a niche; so get this out of the Specialty Markets group. --The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.) --If you dip your toes in the water, what makes you think youll get splashy results? --Bust through the walls of the corporate silos.
--Once you get her, dont let her slip away. --Women ARE the long run! Source: Martha Barletta, Marketing to Women 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.
5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Womens Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity No. 1. And even if they manage to get the age thing right,
[Marti] Barletta says companies still tend to screw up in fairly predictable ways when they add women to the equation. Too often, their first impulse is to paint the brand pink, lavishing their ads with flowers and bows, or, conversely, pandering with images of women warriors and other cheesy clichs. In other cases they use language intended to be empathetic that come across instead as borderline offensive. One bank took out an ad saying, We recognize womens special
needs, says Barletta. No offense, but doesnt that sound like the Special Olympics? Fast Company/03.04 12. Re-imagine the Customer II: Trends Worth Boomer Bonanza/ Godzilla Geezer.
Trillion$$$ Its like a tsunami coming at you. You know the tidal wave is going to hit, and its a question of whether well be ready. Ed Schneider, Professor of
Gerontology, USC Subject: Marketers & Stupidity Its 18-44, stupid! Subject: Marketers & Stupidity
18-44 is stupid, stupid! Or is it: 2000-2010 Stats
18-44: -1% 55+: +21% (55-64: +47%) Some 350,00 people turn 50 each month in the United States, providing an enormous and growing pool of potential buyers [of giant RVs] for
at least the next decade. Craig Kennison, industry analyst/Chicago Tribune/06.07.2004 44-65: New Consumer Majority * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder
The New Consumer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies. David Wolfe & Robert Snyder, Ageless Marketing
Baby-boomer Women: The Sweetest of Sweet Spots for Marketers David Wolfe and Robert Snyder, Ageless Marketing Tap into a midlife womans
renewed sense of self, and your cash registers are likely to start ringing Headline/Fast Company/03.04 Aging/Elderly $$$$$$$$$$$$ Im in charge!
NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same? USN&WR Cover/06.01 Sixty Is the New Thirty
Cover/AARP/11.03 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $610B healthcare spending/
74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Advertisers pay more to reach the kid because they think that once someone hits middle age hes too set in his ways to be
susceptible to advertising. In fact, this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywoods cult of youth.James Surowiecki (The New Yorker/04.01.2002)
Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders Marketers attempts at
reaching those over 50 have been miserably unsuccessful. No markets motivations and needs are so poorly understood.Peter Francese, founding publisher, American Demographics Households headed by someone
40 or older enjoy 91% ($9.7T) of our populations net worth. The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Median Household Net Worth <35: $7K 35-44: $44K 45-54: $83K 55-64: $112K 65-69: $114K 70-74: $120K >74: $100K
Source: U.S. Census 50+ 78M 67% of wealth ($28T) Source: U.S. Census/Federal Reserve/WSJ Net Worth Household Heads
55-64 = 15X <35 Source: U.S. Census/WSJ The mature market cannot be dismissed
as entrenched in its brand loyalties. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders Focused on assessing the
marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
While the average American age 12 or older watched at least five movies per year in a theater, those 40 and older were the most frequent moviegoers, viewing 12 or more a year.Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders Women 65 and older spent $14.7
billion on apparel in 1999, almost as much as that spent by 25- to 34-yearolds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market? Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Possession Experiences /Desires for things/Young adulthood/to 38 Catered Experiences/ Desires to be served by others/Middle adulthood Being Experiences/Desires for trancending experiences/Late adulthood Source: David Wolfe and Robert Snyder/Ageless Marketing
Elderly Purchase experiences more than just things Convenience / Comfort / Access / Need to be appreciated = Top Priorities Source: Ken Dychtwald, Age Wave
Starting to Reach Out: Sony, Ford, Walt Disney, Target, Anheuser-Busch, P&G Source: WSJ Age Power will
rule the 21 century, and we are woefully unprepared. st Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old No: Target Marketing
Yes: Target Innovation & Target Delivery Systems The baby-boom
generation is the first wellness generation. Paul Zane Pilzer/ The Wellness Revolution: The Next Trillion Dollar Industry Wellness = $$$$$$$$
Currently $200B, $1T by 2013 (Source: Paul Zane Pilzer, The Wellness Revolution: The Next Trillion Dollar Industry)
And . Hispanics: 38.5% growth, 1990-2000, vs. 9.3% overall* *Source: Communispace/2003
Relative to the demand, the success stories are pitifully few Andrew Nuttney, Research Director, The Research & Advisory Group; on marketing effectively to Hispanics BofA Is Betting Its Future on the
Hispanic Market * We expect to get no less than 80 % of our future growth in retail banking from the Hispanic market. Ken Lewis, CEO, BofA *Fortune/04.2003 Duh!
We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood its in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. Thats what Super Saver is. All the signage is in both
languages. Theres a 100 percent Spanish-speaking staff in the store.Larry Johnston, CEO, Albertsons Marketing to Women, Martha Barletta EVEolution: The Eight Truths of Marketing to Women, Faith Popcorn & Lys Marigold Ageless Marketing, David Wolfe & Robert Snyder Marketing to the Mindset of Boomers and Their Elders, Carol Morgan & Doran Levy
Selling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-Buitoni The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf Jensen Trading Up: The New American Luxury, Michael Silverstein & Neil Fiske VI. NEW BUSINESS. NEW
WORK. 13. Re-imagine Work: The WOW Project. (Or Bust.) Your Current Project?
1. Another days work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)
Measures WOW! Beauty! Raving Fans! Impact! Language matters! Wow!
BHAG! Takes your breath away! Astonish me! / S.D. Build something great! / H.Y. Immortal! / D.O.
Lets make a dent in the universe. Steve Jobs Reward excellent failures. Punish mediocre successes.
Phil Daniels, Sydney exec Legacy ! TP: Your signature is not I work for Dow. Its, I accomplished [INCREDIBLY
COOL PROJECT] while I was associated with Dow.* *Terms: Signature. Portfolio. Projects. Braggables. 14. Re-imagine Implementation I: The F4 Recipe.* *Find a Fellow Freak Far away
Topic: Boss- free Implementation of STM /Stuff That MATTERS! Worlds Biggest Waste
Selling Up THE IDEA: Model F4 Find a Fellow Freak Faraway
F2F!/K2K!/ [email protected]/R.F!A.* *Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim. And K2KK* S2SS** *Kook to Kooky Kustomer
**Skunk to Scintillating Supplier I often noticed that while the admirals around the table vigorously shook their heads in disagreement, the younger officers lining the back walls nodded their heads in assent. This was a huge lesson for me: If one was going to change things, one needed to focus on the mid-level officers. Because in just a few short
years, they would be running the Navy, and they realized, intuitively, that the future threat environment [had changed radically]. Thomas Barnett, The Pentagons New Map Nobody gives you power. You just take it. Roseanne
Kurt Carlson to young Marilyn Carlson: If you dont like Sunday School, change it! (She did.) To Be somebody or to
Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) 14A. Re-imagine Implementation II: Getting to WOW Through Mastery of
The Sales 25. The Sales25: Great Salespeople 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customers consultants.) (And especially the corporate culture.)
4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customers org. (Relationships at all levels & functions.) 7. Wire the home teams org. and vendors orgs.
(INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.) Its politics, stupid! (Play or sit on the sidelines.) Great Salespeople
8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of moneyheres exactly how.) (IS THIS A PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)
10. Will involve anybodyincluding mortal enemiesif it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.) Great Salespeople 12. Think Turnkey. (Its always your problem!)
13. Act as orchestra conductor: You are responsible for making the whole-damn-network respond. (PERIOD.) 14. Help the customer get to know the vendors organization & build up their Rolodex. 15. Walk away from bad business. (Even if it gets you fired.) 16. Understand the idea of a good loss. (A bold effort thats sometimes better than a lousy win.) 17. Think those who regularly say Its all a price issue
suffer from rampant immaturity & shrunken imagination. 18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstartsthe real enemy. 20. Seek several cool customerswholl drag you into Tomorrowland. Great Salespeople 21. Use the word partnership obsessively, even though it is way overused. (Partnership includes folks at
all levels throughout the supply chain.) 22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for little things.) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word we. 23. When you look across the table at the customer, think religiously to yourself: HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?
24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple! 15. Re-imagine Boss Work: Start a WOW Projects Epidemic! Emphasize Demos,
Heroes, Stories! Ordering Systemic Change is a Stupid Waste of Time! Premise: Demos!
Heroes! Stories! Culture of Prototyping Effective prototyping may be the most valuable core competence an
innovative organization can hope to have. Michael Schrage Think about It!? Innovation = Reaction to the Prototype Michael Schrage
He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd Shell Game Changer 10% of technical budget set aside
and used to fund promising but nontraditional ideas through a staged funding process similar to that used by venture capitalists Source: Financial Times/08.2003 Demo = Story A key perhaps the key
to leadership is the effective communication of a story. Howard Gardner, Leading Minds: An Anatomy of Leadership MB S
A!* *Managing By Story-ing Around/David Armstrong Find something small that you can turn around. If youre on a 9game losing streak, you need to start with one
great inning.Rudy Some people look for things that went wrong and I look for things that went right and try to build on them.
try to fix them. Bob Stone/ Mr.Rego/ Lessons from an Uncivil Servant REAL Org Change: Demos & Models (Model Installations, ReGo Labs)/ Heroes (mostly extant: burned to reinvent govt)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/
Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors/ Support Groups/ End RunsPull Strategy (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field Real People Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loopsact before the bad guys can react) C.f., Bob Stone, Lessons from an Uncivil Servant
JKC 1. Scour for renegades; wine & dine. 2. Go outside for funds. Stories Paint me a picture Story infrastructure Demos Quick prototypes Experiments
Heroes Renegades Skunkworks Demo Funds V.C. G.M. Roster Portfolio Stones Rules JKCs Rules VII. NEW BUSINESS. NEW YOU.
16. Re-imagine the Individual: Welcome to a Brand You World Distinct or Extinct New World of Work < 1 in 10 F500 #1: Manpower Inc.
Freelancers/I.C.: 16M-25M Temps: 3M (incl. CEOs & lawyers) Microbusinesses: 12M-27M Total: 31M-55M Source: Daniel Pink, Free Agent Nation JUST GOT LAID OFF? HIRE
YOURSELF!Cover story, Forbes, 12 May 2003 If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed, and that increasingly means you wont
get paid much either. Michael Goldhaber, Wired TIM MONICH: the man Hollywood turns to for the right accent Source: Boston Globe/01.25.2004 Self-reliance never comes naturally to
adults because they have been so conditioned to think non-authentically that it feels wrenching to do otherwise. Self Reliance is a last resort to which a person is driven in desperation only when he or she realizes that imitation is suicide, that he must take himself for better, for worse, as his portion. Lawrence Buell, Emerson
Minimum New Work SurvivalSkillsKit2003 Mastery Rolodex Obsession (vert. to horiz. loyalty) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young
Embracing Marketing Passion for Renewal Sams Secret #1! Minimum New Work SurvivalSkillsKit2003 Mastery Rolodex Obsession (vert. to horiz. loyalty)
Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing Marketing Passion for Renewal
Thriving in 24/7 (Sally Helgesen) START AT THE CORE. Nimbleness only possible if we locate our inner voice, take regular inventory of where we are. LEARN TO ZIGZAG. Think gigs. Think lifelong learning. Forget old loyalty. Work on optimism. CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business.
WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of looking people up. My ancestors were printers in Amsterdam from 1510 or so until 1750, and during that
entire time they didnt have to learn anything new. Peter Drucker, Business 2.0 (08.22.00) Knowledge becomes obsolete incredibly fast. The continuing professional
education of adults is the No. 1 industry in the next 30 years mostly on line. Peter Drucker, Business 2.0 (22August2000) 26.3 3 Weeks in May
Training & Prep: 187 Work: 41 (Other: 17) 1% vs. 367%
Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why dont businesspeople do it?
Prep: 1 hour per 1 minute (WSC) Forget practice makes perfect. Substitute perfect practice makes perfect. (TT) Major difference between best and average? Best get as much pleasure from practice as performance. Ben Zander Edward Jones Training Machine*
146 hours/employee/year New hires: 4X avg. 3.8% of payroll * #1, The 100 Best Companies To Work For/Fortune/01.2003 R.D.A. Rate: 15%?, 25%?
Therefore: Formal Investment Strategy/R.I.P. Invent. Reinvent. Repeat. Source: HP banner ad Personal Brand Equity Evaluation I am known for [2 to 3 things]; next year at this time Ill
also be known for [1 more thing]. My current Project is challenging me New things Ive learned in the last 90 days include My public recognition program consists of Additions to my Rolodex in the last 90 days include My resume is discernibly different from last years at this time
T.T.D./Assignment Construct a 1/8-page or 1/4-page ad for Brand You for the Yellow Pages
The Rule of Positioning If you cant describe your position in eight words or less, you dont have a position. Jay Levinson and Seth Godin, Get What You Deserve!
You are the storyteller of your own life, and you can create your own legend or not. Isabel Allende Carpenters bend wood; fletchers bend arrows; wise men fashion themselves.
Buddha THE I work for a company called Me STREET JOURNAL Adventures in Capitalism THE rise up and
flee your cubicle STREET JOURNAL Adventures in Capitalism Bill Parcells World/ Brand You World! BLAME NOBODY! EXPECT NOTHING!
DO SOMETHING! NY Post (9/99) Disagree: Success in life is pretty much determined by forces out side our control Bangladesh 9% China 22% Germany 31%
Mexico 38% France 42% UK 43% Japan 52% Canada 62% U.S.A. 64%* *81% college kids predict theyll be richer than their parents Source: Pew Center
17. Re-imagine Excellence I: The Talent Obsession. When land was the scarce resource, nations battled over it. The same is
happening now for talented people. Stan Davis & Christopher Meyer, futureWEALTH Historically, smart people have always turned to where the money was. Today, money is turning to
where the smart people are. FT/06.03.03 Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute
Brand = Talent. Talent! Tina Brown: The first thing to do is to hire enough talent that a critical mass
of excitement starts to grow. Source: Business2.0/12.2002-01.2003 The Talent Ten 1. Obsession P.O.T.* = All
Consuming *Pursuit of Talent Model 25/8/53 Sports Franchise GM
In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.Ed
Michaels The leaders of Great Groups love talent and know where to find it. They revel in the talent of others. Warren Bennis & Patricia Ward Biederman, Organizing Genius
PARCs Bob Taylor: Connoisseur of Talent Les Wexner: From sweaters to people! Talent (Not) on His Mind
Norman Pearlstine, Editor-in-Chief, Time Inc., asked a magazines managing editor to name 10 people outside Time that the magazine should pursue: He said, I cant think of any. Source: New York Times/05.12.2003 2. Greatness
Only The Best! From 1, 2 or youre out [JW] to Best Talent in each industry segment to build best proprietary
intangibles [EM] Source: Ed Michaels, War for Talent 3. Performance Up or out! We believe companies can increase their market cap 50 percent in 3 years. Steve
changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased Macadam at Georgia-Pacific profitability from $25 million to $80 million
in 2 years. Ed Michaels, War for Talent Message: Some people are better than other people. Some people
are a helluva lot better than other people. 4. Pay Fork Over! Top performing companies are
two to four times more likely than the rest to pay what it takes to prevent losing top performers. Ed Michaels, War for Talent (05.17.00)
5. Youth Grovel Before the Young! Why focus on these late teens and twentysomethings? Because they are the first young who are both in a position to change the world, and are actually
doing so. For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. The Internet has triggered the first industrial revolution in history to be led by the young. The Economist [12/2000] 8 Minutes*
Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then theres oya yubi sedai, the thumb generation 6. Diversity Mess Rules!
Where do good new ideas come from? Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines. Nicholas Negroponte
Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mlange, the adulterated, the blemished, the rough, the black-and-blue, the mixand-match these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge CM Prof Richard Florida on Creative Capital: You cannot get a technologically innovative place unless its open to weirdness,
eccentricity and difference. Source: New York Times/06.01.2002 7. Women Born to Lead! AS LEADERS, WOMEN RULE: New Studies find
that female managers outshine their male counterparts in almost every measure Title, Special Report, BusinessWeek, 11.20.00 8. Weird The Cracked Ones Let in the Light!
The Cracked Ones Let in the Light Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels. David Ogilvy
He wasnt one who went along with his peers SPC Joe Darbys history teacher Deviance tells the story of every mass market ever created. What
Deviants, Inc. starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there way out there. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
9. Opportunity Make It an Adventure! H.R. to H.E.D. ??? Human
Enablement Department Firms will not manage the careers of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her
own career. Tim Hall et al., The New Protean Career Contract Talent Department People Department Center for Talent Excellence Seriously Cool People Who Recruit
& Develop Seriously Cool People Etc. 10. Leading Genius We are all unique! Beware Lurking HR Types
One size NEVER fits all. One size fits one. Period. 48 Players = 48 Projects = 48 different success measures.
100% IMAGINATION!* The Ritz Cookie Lady PPSI *Damn it. Whats your companys EVP?
Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent
Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP
Talents Big Two Rules GREAT Finance Dept. = GREAT Football Team DIFFERENCES Among Cello Players = DIFFERENCES Among Hotel GMs
17A. ADDENDA to Re-imagine Excellence: Tom Peters The Talent50 The Talent50 1. People first!
2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added. 4. Talent excellence in every part of the organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is cool.
The Talent50 8. Re-name HR. (Talent Department, Center of Talent Excellence) 9. Theres an HR Strategy 10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a world class Leadership Development
Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The Top100, and every units Top10, are consciously managed. The Talent50 15. People/Talent Reviews are the FIRST reviews. 16. HR Strategy = Business Strategy.
17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21. 20. Pursue the Best! 21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay!
The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% business people. 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect!
31. INTEGRITY! 32. Treat the Whole Individual. The Talent50 33. Places of grace. 34. MBWA: The Rudy Rule. 35. Thank You! 36. Promote for people skills. (ALL ELSE IS SECONDARY.)
37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring. The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors.
43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses win people over. 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm!
The Talent50 50. Talent = Brand. 17B. Re-imagine
Excellence II: Meet the New Boss Women Rule! AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male
counterparts in almost every measure Title, Special Report, BusinessWeek, 11.20.00 Lawrence A. Pfaff & Assoc. 2 Years, 941 mgrs (672M, 269F); 360 feedback Women: 20 of 20; 15 of 20 with statistical significance, incl. decisiveness, planning,
setting stds.) Men are not rated significantly higher by any of the raters in any of the areas measured. (LP) The New Economy Shout goodbye to command and control!
Shout goodbye to hierarchy! Shout goodbye to knowing ones place! Guys want to put everybody in their hierarchical place. Like, should I have more respect for you, or are you somebody thats south
of me? Paul Biondi, Mercer Consultants [from Its Not Business, Its Personal, Ronna Lichtenberg] Society is based on male standards with women seen as anomalies deviating from the male norm. Bi Puvaneu, Institute for Future Studies (Stockholm)
Womens Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills,
individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure rationality; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, Americas Competitive Secret: Women Managers On average, women and men possess a number of different innate skills. And current trends suggest
that many sectors of the twentyfirst-century economic community are going to need the natural talents of women. Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World American women possess leadership abilities that are particularly effective in
todays organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one organization and one country from another will be its use of human resources. Today human resource utilization is not only a matter of social justice but a bottom-line issue. Judy Rosener, Americas Competitive Secret
TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has
better intuition? Who works with a longer to do list? Who enjoys a recap to the days events? Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Investors are looking more and more for a relationship with their financial
advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men. Hardwick Simmons, CEO, Prudential Securities
Works Rewards F: Relationships, respect, self-realization. M: Title, salary, power. (In all my research with men, Ive never once heard a mention about the importance of relationships.) Source: Susan Rice, former Director of Communications,
BBDO Europe (from A Dignified Woman) [Women] see power in terms of influence, not rank. Fortune/10.13.2003 Thank you 17 Men: 8
4 Women: 19 Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership Team In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. I have a responsibility to do the best we can for
shareholders. * ** *Source: New York Times/05.05.02 **Wouldnt you love to watch him tell that face-to-face to Margaret Thatcher or Carly Fiorina? (I would.) Okay, you think Ive gone tooooo far. DO ANY
OF YOU SUFFER FROM TOO MUCH TALENT? How about this: 63 of 2,500 top earners in F500 8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med
faculty; 7% deans Source: Susan Estrich, Sex and Power Its time for U.S. organizations to act. No other country in the world has a comparable supply of professional women waiting to be called into action. This is Americas competitive secret.
Judy B. Rosener, Americas Competitive Secret Opportunity! U.S. M.Mgt. 41% T.Mgt. 4% Peak Partic. Age 45
% Coll. Stud. 52% G.B. E.U. Ja. 29% 18% 6% 3% 2% <1% 22
27 19 50% 48% 26% Source: Judy Rosener, Americas Competitive Secret Internationally, the United States ranked sixtieth in womens political
leadership, behind Sierra Leone and tied with Andorra. Marie Wilson, Closing the Leadership Gap >1/3rd in parliament: Sweden, Denmark, Norway, Finland, Iceland, the Netherlands, Germany (USA: 15%,14%) France: Constitutional amendment re women
on ballot (L & R); 25% to 48% local govt India: Constitutional amendment, 1/3rd village council seats (1.3M) Marie Wilson, Closing the Leadership Gap Former President Vigdis Finbogadottir likes to tel of boys who asked their
mothers during her long term if men could be president of Iceland. Marie Wilson, Closing the Leadership Gap Its Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in high-level math and science courses More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbers Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000) Degree Gap* Wom:Men/Bachelors 2000: 133; 2010: 142 Wom:Men/Masters 2000: 138; 2010: 151 * Whites, Blacks, Hispanics, Asians, Native Americans Source: The New Gender Gap/BusWeek/05.26.2003
Girls lead: Student govt, music & performing arts, yearbook & newspaper, academic clubs. Boys lead: Sports, learning disabilities, diagnosed with emotional disturbances Source: The New Gender Gap/BusWeek/05.26.03
THE NEW GENDER GAP: From kindergarten to grad school, boys are becoming the second sexCover story, BusinessWeek/26 May 2003 Are men obsolete?
Headline, USN&WR/06.03.03 Boys are trained in a way that will make them irrelevant. Phil Slater
Read This! Winning the Talent War for Women: Sometimes It Takes a Revolution Douglas McCracken, HBR Deloitte was doing a great job of hiring highperforming women; in fact, women often earned
higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. Most women werent leaving to raise families; they had weighed their options in Deloittes maledominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions.
Douglas McCracken, Winning the Talent War for Women [HBR] The process of assigning plum accounts was largely unexamined. Male partners made assumptions: I wouldnt put her on that kind of company because its a tough manufacturing environment. That client is difficult to deal with. Travel
puts too much pressure on women. Douglas McCracken, Winning the Talent War for Women [HBR] !!!!!!!!!!!!!!! 14 to 168* *Leadership Positions/D&T/1992-2002/WIAR
Plante & Moran (#11) Highest % women partners (19%) Highest % partners on non-traditional work schedules (14%) Parenting Buddies; 4 weeks off, 5 after 5 years; paid 4-week sabbatical for partners every 7 years; up to 6 months unpaid parental leave (M & F) Exceptional growth/profitability vs. Top 100
Source: Fast Company/05.04 2004/SFs Gavin Newsome: top 3 jobs to women Fire Chief, Police Chief, DA (All were held by men) Cirque du Soleil: Talent (12 full-time
scouts, database of 20,000). R&D (40% of profits; 2X avg corp). Controls (shows are profit centers; partners like Disney offset costs; $100M on $500M). Scarcity builds buzz/ brand (1 new show per year. People tell me were leaving money on the table by not
duplicating our shows. Theyre right.Daniel Lamarre, president). Source: The Phantasmagoria Factory/Business 2.0/1-2.2004 Would Congress [the BoardroomTP] be a different place if half the members were women? From Sex and Power, Susan Estrich
+/The Boston Club: Corporate Salute (10.28.03) Norwegian Law: Boards must have at least
40% women. Im on the lunatic fringe of optimism. Shelley Lazarus, CEO, Ogilvy & Mather, on women eventually occupying 50% of F500 CEO slots (vs. 8/1.6% in 2003)
Women Rule Match market power Attributes fit N.O.W. (New Org World) 10M biz owners Girls education #1: Yields highest return on investment in developing world*
*better nutrition for family. Better kids education. Better health. Higher family income. Lower birth rate. Etc. Source: Larry Summers, as reported in The Payoff From Womens Rights, Isobel Coleman, Foreign Affairs/May-June 2004 18. Re-imagine Education.*
*Or perish My education was a prolonged and concerted attack on my individuality. Neil Crofts, Authentic The boys who made the
best Grotties usually turned out to be nonentities later; boys who hated Groton did much better. FDR biographer John Gunther (quoted in Whoever Makes the Most Mistakes Wins, Richard Farson & Ralph Keyes) Losing the War to Bismarck
(and Rockefeller) J. D. Rockefellers General Education Board (1906): In our dreams people yield themselves with perfect docility to our
molding hands. The task is simple. We will organize children and teach them in a perfect way the things their fathers and mothers are doing in an imperfect way. John Taylor Gatto, A Different Kind of Teacher My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a
grade of Unsatisfactory in art. We were shocked. How could any childlet alone our childreceive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor skills.
grade in art at such a young age? Jordan Ayan, AHA! How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out
of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a closet artist. The point is: Every school I visited was participating in the suppression of creative genius. Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fools Guide to Surviving with Grace
An Unnatural Way to Learn Schools Kafka-like rituals: enforce sensory deprivation on classes of children held in featureless rooms sort children into rigid categories by the use of fantastic measures such as age-grading, or standardized test scores train
children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon keep children under constant surveillance, depriving them of private time and space John Taylor Gatto, A Different Kind of Teacher Kafka-like rituals (cont.): assign children numbers constantly, feigning the ability to
discriminate qualities quantitatively insist that every moment of time be filled with lowlevel abstractions forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their active learning time to acquire. John Taylor Gatto, A Different Kind of Teacher Doing Stuff that Matters!
What actually correlates with success are not grades but engagementgenuine involvement in courses and campus activities. Engagement leads to deep learning. Thats very different from just memorizing stuff for an exam. As Russ Edgerton of the Pew Forum on Undergraduate Learning notes, What counts is what students
do in college, not who they are or where they go to college, or what their grades are. John Merrow/USA Today/02.2003 During the first years of life, youngsters all over the world master a breathtaking array of competences with little
formal tutelage. Howard Gardner, The Unschooled Mind Children should be taught in an active way by doing things and playing games. Its very different to what is taught in schools which involves sitting back and absorbing
information. Edward de Bono/The Independent/10.28.2002 The Learners Manifesto The brain is always learning. Learning does not require coercion. Learning must be meaningful. Learning is incidental. Learning is collaborative.
The consequences of worthwhile learning are obvious. Learning always involves feelings. Learning must be free of risk. Frank Smith, Insult to Intelligence Really bright kids who just needed to get
excited teacher, Oakley School Toms Edu3M Manifesto* *Manifesto for Education in the 3rd Millennium Education3M
Learning is a normal state. Children are learnavores. Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.] We learn at different rates. We learn in different ways. Boys and girls learn [very] differently. In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit. Learning for tests is utterly insane. There are numerous rigorous evaluation schemes, of which testing is but oneand abnormal, by real world standards. Education3M We learn most/fastest/most completely when we are passionate about what we are learning and it
matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/ Learning by Internship. Classrooms are abnormal places. We need changes of pace. [Japanese recesses after each class.] International test scores are not correlated with hours-per-year in class.
Big classes are slightly problematic. Big schools suck. Period. Education3M We learn most/fastest/most completely when we are passionate about what we are learning and it matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/ Learning by Internship.
Classrooms are abnormal places. We need changes of pace. [Japanese recesses after each class.] International test scores are not correlated with hours-per-year in class. Big classes are slightly problematic. Big schools suck. Period.
Education3M All thisthe right stufffits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.] U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning. Cutting art-music budgets is truly dumb. Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get to know kids as individuals. Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.] Education3M Our toughest learning achievement mastering our native languagedoes not require schools, or even competent parents. [It
does require a desperate need-to-know.] Great teachers are great learners, not impartersof-knowledge. Great teachers ask great questionsthat launch kids on lifelong quests. The world is not about right & wrong answers; it is about the pursuit of increasingly sophisticated questionsjust ask a ski instructor or neurosurgeon.
Education3M Most schools spend most of their time setting up contexts in which kids learn not to like particular subjects. [Evidence shows that such antilearning sticks!] Vigorous exploration is normal until you are incarcerated in a school. Bite size education-learning is neither
education nor learning. Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in the hyper-structured classroom. Education3M The school reform movement is a giant step backwards embracing the Prussian-Fordist
paradigm with renewed vigorat exactly the wrong time. There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps. Alas, the teaching profession does not ordinarily attract cool dudes & dudettes. Schools of education should by and large have
their charters revoked. Education3M Stability is dead; education must therefore educate for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static
body of facts. Education must develop in youth the capabilities for engaging in intense concentrated involvement in an activity. [James Coleman, 1974.] [Hint: It doesnt.] [Hint: Understatement.] Ye gads: Thomas Stanley has not only found no correlation between success in school and an
ability to accumulate wealth, hes actually found a negative correlation. It seems that schoolrelated evaluations are poor predictors of economic success, Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.
Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins The NAESP Attributes of Those Who Made the 10th Grade History Book Committed! Determined to make a difference! Focused!
Passionate! Irrational about their lifes project! Ahead of their time / Paradigm busters! Impatient! / Action Obsessed Attributes of Those Who Made the 10th Grade History Book Made lots of people mad!
Flouted the chain of command! Creative / Quirky / Peculiar! / Rebels! / Irreverent! Masters of improv / Thrive on chaos / Exploit chaos! Attributes of Those Who Made the 10th Grade History Book
Made lots of people mad! Flouted the chain of command! Creative / Quirky / Peculiar! / Rebels! / Irreverent! Masters of improv / Thrive on chaos / Exploit chaos! Attributes of Those Who Made the 10th Grade History Book
Forgiveness > Permission Bone honest! Flawed as the dickens! In touch with their followers aspirations Damn good at what they do! VIII. NEW
BUSINESS: (NEW) BRAND INSIDE RULES Message 2003 BI > BO
Brand Inside Rules! I came to see in my time at IBM that culture isnt just one aspect of the gameit is the game Lou
Gerstner, Who Says Elephants Cant Dance? Brand Inside Rules! If I could have chosen not to tackle the IBM culture head-on, I probably wouldnt have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of
hundreds of thousands of people is very, very hard. Lou Gerstner, Who Says Elephants Cant Dance? 19. Re-imagine the Roots of Innovation: THINK WEIRD the High Value Added Bedrock.
Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
The High Standard Deviation Enterprise. THINK WEIRD: CUSTOMERS: Futuredefining customers may account for only 2% to 3%
of your total, but they represent a crucial window on the future. Adrian Slywotzky, Mercer Consultants If you worship at the throne of the voice of the customer, youll get only
incremental advances. Joseph Morone, President, Bentley College These days, you cant succeed as a company if youre consumer led because in a world so full of so much constant change, consumers cant
anticipate the next big thing. Companies should be idealed and consumerinformed. Doug Atkin, partner, Merkley Newman Harty The future has already happened. Its just not evenly distributed.
Adrian Slywotzky Generally, disruptive technologies underperform established established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value.
Clayton Christensen, The Innovators Dilemma W.I.W? 20 of 26 7 of top 10* *P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10
(The billiondollar problem.) categories. Source: Advertising Age 01.21.2002/BofA Securities Ways to Raise a Purple Cow
Think small. One vestige of the TVindustrial complex is a need to think mass. If it doesnt appeal to everyone, the thinking goes, its not worth it. Think of the smallest conceivable marketand describe a product that overwhelms it with remarkability. Go from there. Source: Seth Godin, Fast Company (02.2003)
Primary Obstacles to Marketing-driven Change 1. Fear of cannibalism. 2. Excessive cult of the consumer/ customer driven/ slavery to demographics, market research and focus groups. 3.Creating sustainable advantage.
Source: John-Marie Dru, Disruption Account planning has become focus group balloting. Lee Clow
Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of sustainable advantage after so many battles. But hypercompetition, a state in which sustainable
advantages are no longer possible, is now the only level of competition. Rich DAveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: What these times call for is more creative
and breakthrough reengineering of product and service benefits, but we dont train people to think like that. The way marketing is taught across business schools is far too analytical and datadriven. Weve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs. In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. This reductionist
thinking runs counter to the idea that great brands must have a core, unifying idea. Businessworld/04Nov2002/Why Is Marketing Not Working? The Fatal Assumption: Analysis Produces Synthesis Planning by its very nature defines and preserves categories. Creativity, by its very nature, creates categories or rearranges
established ones ... The key is integration rather than de-composition, based on holistic images rather than linear words. Henry Mintzberg, The Rise and Fall of Strategic Planning COMPETITORS: The best swordsman
in the world doesnt need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesnt do the thing he ought to do, and so the expert isnt prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.
Mark Twain To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation and pursuit. W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/08.11.03
Aiming to beat the competition has the opposite effect to the one intended. It keeps companies focused on the competition. When asked to build competitive advantage, managers typically rate themselves against competitors, assess what they do and try to do it better. W. Chan Kim &
Renee Mauborgne, Think for YourselfStop copying a Rival/FT/08.03 The short road to ruin is to emulate the methods of your adversary. Winston Churchill
How do dominant companies lose there position? Two-thirds of the time, they pick the wrong competitor to worry about. Don Listwin, CEO, Openware Systems/WSJ/06.01.2004 (commenting on Nokia)
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 cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats 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 Gameboy 14 years in a row)? Its like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. Theyre on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its 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 takenso its no longer remarkable when you
decide to do it. Seth Godin, Fast Company/02.2003 Employees: Are there enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees Boards: Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable Jeffrey Sonnenfeld, Yale School of Management
The Bottleneck is at the Top of the Bottle Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma? At the top!
Gary Hamel, Strategy or Revolution/ Harvard Business Review Enormous sums of money are invested to reduce cycle time, improve quality, reengineer Much of this money is simply wasted. The waste is due to companies inability to develop wide-angle vision and tap into the power of the edge.
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees Corporate consciousness is predictably centered around the mainstream. The best customers, biggest competitors, and model
employees are almost invariably the focus of attention. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees We become who we
hang out Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.] WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the
organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) dont need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them.
(9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Dont try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your companys success. Bob Sutton, Weird Ideas That Work: 11 Ideas for Promoting, Managing, and Sustaining Innovation Kevin Roberts Credo 1. Ready. Fire! Aim.
2. If it aint broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!
Advice to Corporate Leaders: Consider the metaphor of the windmill: You can harness raw power but you cant control it. Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. Hire a corporate anthropologist to analyze how tolerant your organization is of deviants and other innovators. Once the anthropologist
leaves, hire a shaman to drive out the evil spirits of conformity. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) Deviance tells the story of every mass market ever created. What
Deviants, Inc. starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there way out there. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
Giant projects contain within them the almost certain seeds of mediocrity. The very fact of their size causes constant scrutiny and thence political interference. Such oversight drains the passion of the champions and risksto the point of certaintyfatal dumbing down and thence loss of the very distinction and quirkiness sought in the first place.
Exec, Hollywood Innovation Source No. 1*: PPPs/Personally Pissed-off People Branson started Virgin Atlantic because flying other airlines was so dreadful. Fortune/05.13.2002
*And there is no No. 2! Bernie Goldhirsh: Sailing his passion, but sailing mags for yachtsmen only start Sail. Sail a biz success, but biz mags for corporate types only start Inc.
Big Idea/s V.C. GM Portfolio Roster Innovation Index: How many of your Top 5
Strategic Initiatives score 7 or higher (out of 10) on a Weirdness/Profundity Scale? IX. NEW BUSINESS. NEW LEADERSHIP. 20. Re-imagine Leadership
for Totally Screwed Up Times: The Passion Imperative. The Passion Imperative: The
Leadership 50 The Basic Premise. 1. Leadership Is a
Mutual Discovery Process. Ninety percent of what we call management consists of making it difficult for people to get
things done. P.D. I dont know. Quests! Organizing Genius / Warren Bennis and Patricia Ward Biederman
Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best. The best thing a leader can do for a Great Group is to allow its members to discover their greatness.
Leaders-Teachers Do Not Transform People! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostlycaveat: they dont engage unless theyre mad about something) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people
(5) go to-create places they (and their mentors-teachersleaders) had never dreamed existedand then the leaders-mentors-teachers (6) applaud like hell, stage photo-ops, and ring the church bells 100 times to commemorate the bravery of their followers explorations! The Leadership Types.
2. Great Leaders on Snorting Steeds Are Important but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul.
25/8/53* (*Damn it!) Whoops: Jack didnt have a vision! T.A.:
3 3. But Then Again, There Are Times When This Cult of Personality (Type II Leadership) Stuff Actually Works! A leader is a
dealer in hope. Napoleon (+TPs writing room pics) USN&WR/What traits do successful activists share? They
have hope, and they imbue others with hope. Studs Terkel, age 91: 4. Find the Businesspeople! (Type III Leadership)
I.P.M. (Inspired Profit Mechanic) 5. All Organizations Need the Golden
Leadership Triangle. The Golden Leadership Triangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic.
The Essential Tension Keeper of the Flame of Creation (Brahma = Creator) Keeper of the Flame of Preservation (Vishnu = Preserver) Keeper of the Flame of Destruction (Shiva = Destroyer) 6. Leadership Mantra
#1: IT ALL DEPENDS! Renaissance Men are a snare, a myth, a delusion!
7. The Leader Is Rarely/Never the Best Performer. 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0.
Walter Alston1AB. Tony LaRussa 132 games, 6 seasons. Tommy LasordaP, 26 games. Sparky Anderson1 season. The Leadership Dance.
8. Leaders SHOW UP! Rudy! The first and greatest imperative of command is to be present in person. Those who
impose risk must be seen to share it. John Keegan, The Mask of Command A body can pretend to care, but they cant pretend to be there. Texas Bix Bender
P.S. 5,000 miles for a 5 min. meeting! Mark McCormack:
9. Leaders LOVE the MESS! Im not comfortable unless Im uncomfortable. Jay
Chiat If things seem under control, youre just not going fast enough. Mario Andretti
10. Leaders DO! The Kotler Doctrine: 1965-1980: R.A.F. (Ready.Aim.Fire.)
1980-1995: R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!) We have a strategic plan. Its called doing
things. Herb Kelleher 11. Leaders Re -do.
If Microsoft is good at anything, its avoiding the trap of worrying about criticism. Microsoft fails constantly. Theyre eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power theyve gained in other markets to enforce their standard.
Seth Godin, Zooming The lesson is the importance of relentless readjustment. At Microsoft they never get it right, but theyre constantly, relentlessly adjusting. And somehow, through constant readjustment practice over time, they gradually weave
their way to the right place. George Colony, Forrester Research Sony Electronics has a wellearned reputation for persistence. The companys first entry into a new field often isnt very good. But, as it has shown in laptops, Sony will keep trying until it gets
it right. BusinessWeek (5/01) If it works, its obsolete. Marshall McLuhan 12. BUT Leaders
Know When to Wait. Tex Schramm: The too hard box!
13. Leaders Are Optimists. Hackneyed but none the less LEADERS SEE CUPS AS HALF
FULL. true: [Ronald Reagan] radiated an almost transcendent happiness. Half-full Cups:
Lou Cannon, George (08.2000) Im not sure about his politics, but thats not what made him great. He inspired people. He made us all feel better about ourselves. bystander,
California, during RR funeral 14. Leaders DELIVER! Leaders dont want to win.
Leaders need to win. #49 It is no use saying We are doing our best. You have got to succeed in doing
what is When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people playedor does she keep wandering back to strategy or
philosophy? Larry Bossidy, Honeywell/AlliedSignal, in Execution 15. BUT Leaders Are Realists/Leaders Win Through LOGISTICS!
The Gus Imperative! 16. Leaders FOCUS! To
Dont List Its T-H-R-E-E, Stupid! I used to have a rule for myself that at any point in time I wanted to have in mind as it so happens, also in writing, on a little card I carried around with me the three big
things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three. Richard Haass, The Power to Persuade 17. Leaders CLEAR DESIGN SPECS. Set
Danger: S.I.O. (Strategic Initiative Overload) JackWorld/
[email protected]: (1) Neutron Jack. (Banish bureaucracy.) (2) 1, 2 or out Jack. (Lead or leave.) (3) Workout Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK!
18. Leaders Send V-E-R-Y Clear Signals About Design Specs! Ridin with Roger: What have
you done to DRAMATICALLY IMPROVE quality in the last 90 days? If It Aint Broke Break It.
19. Leaders FORGET!/ Leaders DESTROY! Forget>Learn
The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock Cortez!
Leaders dump the ones who brung em Nokia, HP, 3M, PerkinElmer, Corning, etc. 20. BUT Leaders
Have to Deliver, So They Worry About Throwing the Baby Out with the Bathwater. Damned If You Do, Damned If You Dont, Just Plain Damned.
Subtitle in the chapter, Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity, Liberation Management (1992) New Product Timing: Only Three Options Too early Too late
Lucky 21. Leaders HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers
Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision 22. Leaders Make [Lotsa] Mistakes and MAKE NO BONES ABOUT IT!
Fail faster. Succeed sooner. David Kelley/IDEO Success is the ability to go from failure to failure without losing
your enthusiasm. Winston Churchill (as quoted by John Peterman) Fail. Forward. Fast. High-tech Exec
No matter. Try again. Fail again. Fail better. Samuel Beckett 23. Leaders Make BIG MISTAKES!
Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec (and, de facto, Jack) Silicon Valley Success [Failure?] Secrets
Pursuit of risk: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpot Source: The Economist Create.
24. Leaders Know that THERES MORE TO LIFE THAN LINE EXTENSIONS. Leaders Love to CREATE NEW MARKETS. No one ever made it into the Business Hall of Fame on a record of
line extensions. Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
25. Leaders Make Their Mark / Leaders Do Stuff That Matters I never, ever thought of myself I was
interested in creating things I would be proud of. Richard Branson as a businessman. In 1933, Thomas J. Watson Sr. gave a speech at the Worlds Fair, World Peace
through World Trade. We stood for something, right? Sam Palmisano Legacy! CEO Assignment2002 (Bermuda): Please leap forward to 2007, 2012, or 2022, and write a business history of
What will have been said about your company during your tenure? Bermuda. Ah, kids: What is your vision for the future? What have you
accomplished since your first book? Close your eyes and imagine me immediately doing something about what youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: Who do we intend to be? Not What are we going to do? but Who do we intend to be? Max DePree, Herman Miller
26. Leaders Push Their W-a-y Up the Value-added/ Intellectual Capital Chain Organizations 09.11.2000: HP bids
$18,000,000,000 for PricewaterhouseCoopers Consulting business! 27. Leaders LOVE the New Technology!
100 square feet 28. Needed? Type IV Leadership: Technology Dreamer-True
Believer The Golden Leadership Quadrangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer
5% F500 have CIO on Board: While some of the worlds most admired companies Tesco, Wal*Martare transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value. Source: Burson-Marsteller
Talent. 29. When It Comes to TALENT Leaders Always Swing for the Fences!
Talents Rules 1. Talent = 25/8/53 2. Some people are better than other people. Some people are a helluva lot better than other people 3. Think Roster 4. Think V.C. 5. Talent = Brand
6. Talent is what leaders do. 30. Leaders Dont Create Followers: THEY CREATE LEADERS! I start with the
premise that the function of leadership is to produce more leaders, not more followers.Ralph Nader Brand You, Big Time! I AM AN
ARMY OF ONE 31. Leaders Win Followers Over WHAT AN IDIOT: Instead of employees being in the drivers seat, now were in the drivers
seat. Coaching is winning players over. PJ:
I didnt have a mission statement at Burger King. I had a dream. Very simple. It was something like, Burger King is 250,000 people, every one of whom gives a shit. Every one. Accounting. Systems. Not just the drive through. Everyone is in the brand. Thats what were talking
about, nothing less. Barry Gibbons The Cold War armies were not great armies, because all the decisions were made by generals and politicians. In great armies, the job of generals is to back up their
sergeants. COL Tom Wilhelm, from Robert Kaplan, The Man Who Would Be Khan, The Atlantic, 03.2004 Passion. 32. Leaders Out Their PASSION!
Create a cause, not a business. G.H.: Vision is a love affair with an idea.
Boyd Clarke & Ron Crossland, The Leaders Voice Coca-Cola was Roberto Goizuetas painting. It was never finished, and he was never totally satisfied with it. But he had the Sistine Chapel in his head, and he was always working on it.
Warren Buffett 33. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! BZ: I am a
Dispenser of Enthusiasm! Until there is commitment there is hesitancy, the chance to draw back. Concerning all acts of initiative and creation, there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence
moves too. All sorts of things occur to help one that would never otherwise have occurred. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now! Johann Wolfgang von Goethe You cant behave in a calm, rational manner. Youve got to be out there on the lunatic
fringe. Jack Welch, on GEs quality program Im looking for insane commitment. Twyla
Tharp, The Creative Habit a powerful and madly exuberant work LA Times on Frank Gehrys Walt Disney Concert Hall (10.03) 34. Leaders Are
in a Hurry The Urgency Factor: LEADERS have a distorted sense of time. (E.g.: Rummy thinks he asked months ago it was the day before yesterday.)
35. Leaders Focus on the SOFT STUFF! Soft Is Hard - ISOE
Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother?
Just read Dilbert. TPs final words: CYNICISM SUCKS.] Ph.D. in leadership. Short course: Make a short list of all things done to you that you abhorred. Dont do them to others. Ever. Make another list of things done to you that you loved. Do them to others.
Always. Dee Hock The Job of Leading. 36. Leaders Know Its
ALL SALES ALL THE TIME. Everybody lives by selling something. Robert Louis Stevenson If you dont LOVE
SALES find another life. (Dont pretend TP: youre a leader.) (See TPs The Project50.) 37. Leaders
LOVE POLITICS. If you dont LOVE POLITICS find another life. (Dont pretend TP:
youre a leader.) 38. But Leaders Also Break a Lot of China
If youre not pissing people off, youre not making a difference! 39. Leaders Give RESPECT!
It was much later that I realized Dads secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was
seriously interested in who you were and what you had to say. Sara Lawrence-Lightfoot, Respect Amen! What creates trust, in the end, is the leaders manifest respect for the
followers. Jim OToole, Leading Change Trust Empowerment has become the biggest gap between walk and talk in America. I hear CEOs stand at podiums and say, How do we get rid of five thousand more? We should forget the word empowerment and go back to plain English. Empowerment is nothing more
than a fancy word for trust. Barry Gibbons The material of a strong, ethical base includes honoring the people who do the work, respecting the letter and the spirit of the law, and believing that a companys responsibility does not stop at the communitys edge. Such a base has been my moral compass. It guides me away from the sleek, the cut corner, and the easy path. The foment about corporate conduct has often
come close to arguing that it is wrong because it has been discovered. In truth, it is wrong because it violates the most critical fundamental of business. One behaves honestly because it is right, because you do unto othersbecause you are responsible for your life and, in your business, for the lives of others. There is no optionno alternative. Sidney Harman/Harman International 40. Leaders Say
Thank You. The two most powerful things a kind word and a thoughtful
gesture. in existence: Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, Its Not Business, Its Personal] The deepest human
need to be appreciated. need is the William James We look for ... ... listening, caring,
smiling, saying Thank you, being warm. Colleen Barrett, President, Southwest Airlines 41. Leaders Are Curious.
The Three Most Important Letters TP/08.2001: WHY? 42. Leadership Is a
Performance. It is necessary for the President to be the No. 1 actor.
nations FDR You cant lead a cavalry charge if you think you look funny on a horse. John Peers, President, Logical
Machine Corporation Seven Seconds to Make an Impression Amp up your attitude [Its energy, stupid!] Recognize face value [no poker face] Give your message a mission [dont forget your agenda] Source: Roger Ailes, CEO, Fox News, Fast Company
43. Leaders Are The Brand
The BRAND lives (OR DIES) in the minutiae of the leaders momentto-moment actions. You must be the change you wish to see in the world.
Gandhi 44. Leaders GREAT STORY! Have a A key perhaps the key
to leadership is the effective communication of a story. Howard Gardner Leading Minds: An Anatomy of Leadership 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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others.
that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies Leaders dont just make products and make decisions. Leaders make
meaning. John Seely Brown Introspection. 45. Leaders Enjoy Leading.
Warren, I know you want to be president. But do you want to do president? [Bertelsmanns Reinhard] Mohn wasnt a creative type. What got him juiced was the
art of running an organization and motivating the people who work there. Fortune/05.27.2002 46. Leaders KNOW THEMSELVES.
Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (Leaders who are not comfortable with themselves become petty control freaks.)
47. But Leaders have MENTORS. Upon having the Leadership Mantle placed upon thine
head, thou shalt never hear the unvarnished truth again!* The Gospel According to TP: (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.)
48. Leaders Take Breaks. Zombie! Zombie! Zombie! Zombie! The End
Game. 49. Leaders ??? : Leadership is the PROCESS of ENGAGING PEOPLE in
CREATING a LEGACY of EXCELLENCE. Its only business, not personal IT ALWAYS IS PERSONAL.
Hire smart go bonkers have grace make mistakes love technology start all over again. LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON
ROLLER BLADES 50. Leaders Know WHEN TO LEAVE! Bonus
The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management
9. Failure Management 10. Cause Management 11. Passion Management X. NEW BUSINESS. NEW RULES. 21. A Re-imagineers
Credo: Toms 60TIBs* *TIB = This I Believe 1. TECHNICOLOR RULES! (Passion Moves Mountains!) 2. Audacity Matters! 3. Revolution Now!
4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!) 6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you cant take Silicon Valley out of the boy!)
7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AINT SEEN NOTHIN YET!) 9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)
11. Permanence Is a Snare & a Delusion. (Forget Built to Last. Its Yesterdays Idea.) 12. Kaizen (Continuous Improvement) Is Dangerous. 13. DESTRUCTION RULES! 14. Forget It! (Learning = Easy. Forgetting = Nigh on Impossible.)
15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.) 16. Boring Begets Boring. (Cool Begets Cool.) 17. Think Portfolio. (Were All V.C.s.) 18. Perception Is All There Is. (Insiders ALWAYS overestimate the Radicalism of What Theyre Up To.)
19. Action ALWAYS Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns! 21. Haste Makes Waste. (SO GO WASTE!) 22. Screw-ups are the Mark of Excellence.
(Do It Right the First Time Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!) 24. TALENT TIME! (He/She Who Has the Best Roster Rules!) 25. Re-do Education. Totally. (FOSTER CREATIVITY NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)
26. Diversitys Hour Is Now! 27. SHE Is the Best Leader! 28. MARKETING MANTRA: Embrace the BIG THREE Demographics. (1) SHE is the Customer. (For everything.) (2) Rapidly Aging Boomers Have ALL THE MONEY. (3) Green Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY Gets It.) (Mere Programs Will Not Suffice.) 29. Re-boot Healthcare. (UNDERSTATEMENT.)
30. WHAT ARE WE SELLING? Experiences & Solutions > Quality & Satisfaction. (The Traditional Value-added Equation Is Being Set on Its Ear.) 31. DESIGN = New Seat of the Soul. 32. Branding Is for EVERYONE. He Who Has the BEST STORY Takes Home the Marbles.
33. DRAMATIC DIFFERENCE = Only Difference. 34. WORDS/Language Matters a Lot. (E.g.: Three Hearty Cheers for Wow!) 35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: Are You Proud of It?) 36. eALL. (IS/IT: Half-way = No Way.) 37. DREAM Big! DREAM Enormous. DREAM Gargantuan. (These Are XXXL
Times.) 38. THINK MIKE! (Michelangelo: The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.) 39. There Is Only ONE BIG ISSUE. Crossfunctional Communication. 40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF UN-DUMBING.)
41. Beautiful Systems Are BEAUTIFUL. 42. The WHITE-COLLAR REVOLUTION Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT OR EXTINCT! 44. Powerlessness Is a State of Mind! Think: King. Gandhi. De Gaulle. 45. Pursue Adventure in Every Task.
46. EXCELLENCE Is a State of Mind. (Excellence Takes a Minute.) (No Bull.) 47. SHOW UP! (If You Care, Youre There.) 48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your TO DONT List.) 49. LIFE IS SALES. (The Rest Is Details.) 50. Boss Mantra #1: I DONT KNOW. (I Dont Know = Permission to Explore.)
51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (Manager = Hurdle Removal Professional.) 52. Epitaph from Hell: He Woulda Done Some Truly Cool Stuff But His Boss Wouldnt Let Him. 53. Change Takes However Long You Think It Takes. (Eschew Incrementalism.) 54. Respect! (Rule 1: Dont Belittle!)
55. Thank You Trumps All! 56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.) 57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.) 58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.) 59. DISPENSE ENTHUSIASM!
60. FUN Is Not a 4-Letter Word. So, too JOY. (And GRACE.) Parting Words In Toms world, its always better to try a swan dive and deliver a colossal belly flop than to step timidly off the
board while holding your nose.Fast Company /October2003 The Re-imagineers Credo or, Pity the Poor Brown* Technicolor Times demand Technicolor Leaders and Boards who recruit Technicolor People who are sent on Technicolor Quests to execute
Technicolor (WOW!) Projects in partnership with Technicolor Customers and Technicolor Suppliers all of whom are in pursuit of Technicolor Goals and Aspirations fit for Technicolor Times. *WSC Have you changed
civilization today? Source: HP banner ad If you ask me what I have come to do in this world, I who am an artist, I will reply: I am here to live my life out
loud. mile Zola Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved bodybut rather a skid in broadside, thoroughly used up, totally worn out, and
loudly proclaiming, Wow, what a ride! anon. Dream as if youll live forever. Live as if youll die today. James Dean
the wildest chimera of a moonstruck mind The Federalist on Jeffersons Louisiana Purchase
You cant behave in a calm, rational manner. Youve got to be out there on the lunatic fringe. Jack Welch HTSH* *Hands That Shape Humanity, a project of the Bishop Desmond Tutu Foundation
HTSH: Engage! Commit! Engage! Try! Fail! Get up! Try again! Fail again! Try again! But never, ever stop moving on! Progress for humanity is engendered by those who join and savor the fray by giving one hundred percent of themselves to their dreams! Not by those timid souls who remain glued to the sidelines, stifled
by tradition, and fearful of losing face or giving offense to the reigning authorities. Key words: Commit! Engage! Try! Fail! Persist! The idea of eloquence is to alter in a pair of hours, perhaps in a half hours discourse, the convictions and habits of years. Not that this often actually happens, but such is always the hope. There is for every man a statement possible, so broad and so pungent that he
cannot get away from it, but must either bend to it or die of it. For this to work, the speakers mind must be inflamed by the contemplation of the whole so that sentences fall from him as unregarded parts of that terrible whole which he sees and which he means that you shall see. Nothing less than the perfection of humankind was eloquences ultimate goal. Lawrence Buell, Emerson
HTSH: You Must Care Make the time each day to offer an expression of appreciation to just one of your fellow human beings. It is the accumulation of such small kindnesses and acts of recognition that add up to a life worth having been lived. In short you must care. You must wear your passion and compassion on your sleeve, and attend assiduously to the moment. It will not come
round again. Key word: Care It is the foremost task and responsibility of our generation to re-imagine our enterprises, private and public. from the Foreword,
Re-imagine: Business Excellence in a Disruptive Age Thank You !