Tom Peters Re-Imagine! Business Excellence in a Disruptive Age REI.500/19August2005 Tom Peters Re-Imagine:
Enterprise On Fire! Conference = Time Out Is not: about picking up tips on data base privacy issues Is: about re-imagining marketing and the idea of a truly/no-bull customercentric enterprise (Might be: about Gasp-worthy game-changing breakthroughs)
Conference = Time Out Is not: about picking up tips on data base privacy issues Is: about re-imagining marketing and the idea of a truly/no-bull customercentric enterprise (Might be: about Gasp-worthy game-changing breakthroughs) China!
China! China! China Chi Slides at
tompeters.com The Incredible, Wild, Whacky, Scary, SuperCool Future and Why Were Not Even Remotely Prepared, and What We Can Do About It, for the Sake of of Our Careers, Work and Organizations: A Musing on Strategies, Tactics, Attitudes, Tips, and General Observations, Such as Why a CFO Should Never Be Promoted to CEO, Why All MBA Programs Should Be Closed and Shuttered, How the 2Bs (Bentonville and Beijing) Became the Co-capitols of the Universe, Why Only
Freaks Get Things Done (in Freaky Times), Why Outrageously Audacious Devotion to Game-changing Innovation Is the PSR/ Primary Survival Requisite (Duh), Why Women Are So Much Better Leaders Than Men (Duh II) (and They Also Buy Everything, Though Just Try Telling That to the Worlds Advertising Geniuses), Why I Call Hospitals The Killing Fields, and How UPS & GE & IBM Are Actually All About Love! (We Will Totally Cover All This and More in 6F or 180 Minutes in Old Language.)
The real title slide follows Tom Peters Re-Imagine! Business Excellence in a Disruptive Age REI.500/15August2005 To
Ray* *Re-imagineer-in-Chief Re-imagine! Not Your Fathers World I. 26
m 60,000* *New factories in China opened by foreigners/2000-2003/ Edward Gresser, Progressive Policy Institute/Wall Street Journal 09.27.04 941,000 vs. 18,200,000
The Ultimate Luxury Item Is Now Made in China Headline/p1/The New York Times/ 07.13.2004/Topic: Luxury Yachts made in Zhongshan Vaunted German Engineers Face
Competition From China Headline, p1/WSJ/07.15.2004 43 h International Herald Tribune P1/600
foreign R&D labs in China, 200 new per year /09.13.2004: Chinas Next Export: Innovation McKinsey Quarterly (Cover Story)
2007 C>E 2003: 98% U.S. 2005: U.S. 150; Shanghai 500 168/ 18,500/
51,000 When the Silk Road Gets Paved/Forbes Global/09.04 Express highways: 168 miles in 89 18,500 in 03 51,000 in 08 (v. U.S. Interstate: 46,500) Implications: $200M Intel plant in Chengdu (pop. 9.9M); 1/3rd Shanghai
wage rate 1 Houston/ Month Worst in 7Q: Steel & Plastic
Chinas share of global consumption/2005: Cement 47% Cotton 37% Coal 30% Steel 26% Source: BusinessWeek/08.05 Savings, internal
investment, external investment > 50% GDP 2.5M vs 7.1M 40/40 35/70
Level 5 (top) certification/ Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from India Source: Wired/02.04
Teenagers in India have big ambitions and the confidence to match headline/Fortune/07.05 03: 25,000 04: 100,000 05: 400,000 MADE IN TAIWAN:
From Cheap Manufacturing to Chic Branding Headline/Advertising Age/06.05 BEATING HURDLES, SCIENTISTS CLONE A DOG FOR A FIRST: Feat for South Koreans Headline/p1/NYT/08.04.05
South Korea is the worlds most wired and wireless nation headline, BW, 07.05 The economic rise of Asias giants is the most important story of our age. It heralds the
end, in the not too distant future, of as much as five centuries of domination by the Europeans and their colonial offshoots. Martin Wolf/FT/02.23.2005 The world has arrived at a rare strategic inflection point where nearly half its population living in China, India and Russiahave been integrated into the global market economy, many
of them highly educated workers, who can do Were talking about three billion people. Craig Barrett/Intel/01.08.2004 just about any job in the world. THREE BILLION NEW CAPITALISTS
Clyde Prestowitz W = 2X I W > Ge, UK c 02.12.01 On
February 12, 2001, anyone with access to the Internet Could suddenly look at a new atlas one containing the whole human genome. Source: Juan Enriquez, As The Future Catches You Re-imagine!
Not Your Fathers World II. There is no job that is Americas God-given right anymore. Carly Fiorina/HP/
01.08.2004 When I was growing up, my parents used to say to me: Finish your dinner people in China are starving. I, by contrast, find myself wanting to say to my daughters: Finish your homeworkpeople in China and India are
starving for your job. Thomas Friedman/06.24.2004 It used to be that if you tell me what country youre from, Id tell you if you were rich or poor. Now I say, Tell me what your profession is. CK Prahalad
India 350,000 engineering grads per year >50% F500 outsource software work to India GE: 48% of software developed in India (Sign in GE India office: Trespassers will be recruited) Source: Dan Pink, A Whole New Mind Product Design Outsourcing Set
For Big Rise Headline/FT/06.05 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 + 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) 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 Re-imagine! Not Your Fathers World III. A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately
Only the constant pursuit of innovation can ensure long-term success. Daniel render them obsolete. Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04) Wall Street is starting
to penalize stocks for anything but organic growth. Advertising Age/07.05 GH: Get better vs Get different
Franchise Lost TP: How many of you  really crave a new Chevy? NYC/IIR/061205
A Different Beat: Toyota Raises Prices While Detroit Cuts Deeply Headline/ NYT/07.26.05 Re-imagine! Not Your Fathers World IV.
SuccessStrategy.2005 SuccessStrategy.2005 Rule #1: Never compete against China on cost or Wal*Mart on price. Rule #2: See
Rule #1 Guiding Tenets/Daily Fare Innovate! Re-imagine! Adapt! Prepare! It is not the strongest
of the species that survives, nor the most intelligent, but the one most responsive to change. Charles Darwin (courtesy HP) Tom Peters Re-Imagine! Business
Opportunities in a Disruptive Age Analysts said we dont care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see two or three years of EPS growth. I preached revenue and the analysts eyes would glaze over. Now
revenue is in because so many got caught, and earnings went to hell. They said, Oh my gosh, you need revenues to grow earnings over time. Well, Duh! Dick Kovacevich, Wells Fargo (in ABA Banking Journal) Were now entering a new phase of business where the group will be a franchising
and management company where brand management is central. David Webster, Chairman, InterContinental Hotels Group InterContinental will now have far more to do
with brand ownership. ownership than hotel James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance
Yahoo is doing so many different things that it may have neglected to figure out what it wants to be headline/Economist/08.05 Miller Lite didnt stand for anything; it was trying to be a me-too to
Budweiser. Graham Mackay/ CEO/ SABMiller/08.05 Top Line, Anyone? Point (Advertising Age), to Phil Kotler: Who should the CMO [Chief Marketing Officer] report to? Kotler: Maybe a Chief Revenue
Officerthe cost side has been squeezed, now companies have to focus on top-line growthor maybe a Customer Officer. Chief (TP: Or maybe both!)
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 Rule #1: When the world goes flatand you are feeling flattenedreach for a shovel and dig inside yourself. Dont try to build walls. Rule #2: And the small shall act big. One way small companies flourish in the flat world is by learning to act really big. And the key to being small and acting big is
being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider and deeper. Rule #3: And the big shall act small. One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big. Rule #4: The best companies are the best collaborators. In the flat world, more and more business will be done through collaborations within and between companies, for a very simple reason: The next layers of value creationwhether in technology, marketing, biomedicine or manufacturingare becoming so complex that no single firm or department is going to be able to master them alone.
Rule #5: In a flat world, the best companies stay healthy by getting regular chest Xrays and then selling the results to their clients. Rule #6: The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share and hire more and different specialistsnot to save money by firing more people. Rule #7: Outsourcing isnt just for Benedict Arnolds. Its also for idealists. Source: Tom Friedman/The World Is Flat Creativity Index: The 3 Ts
Technology (HT Index/firms & $$$, Innovation Index/patent growth) Talent (% with bachelors degrees+)
Tolerance (Melting Pot Index/foreigners, Bohemian Index/artists et al., Gay Index/rel. #s) Source: Richard Florida, The Rise of the Creative Class The Memphis Manifesto*: Building a Community of Ideas 1. Cultivate & reward creativity.
2. Invest in the creative ecosystem. 3. Embrace diversity. 4. Nurture the creatives. 5. Value risk-taking. 6. Be authentic (emphasize uniqueness) 7. Invest in and build on quality of place. 8. Remove barriers to creativity. 9. Take responsibility for change. Development as D.I.Y. 10. Ensure that every person, especially children, has the right to creativity. Become a Steward of creativity.
*2003/The Creative 100/Memphis Source: Richard Florida, The Rise of the Creative Class The Creative Age is a wideopen game. Richard Florida, The Rise of the Creative Class
The Generals Story. (And the Admirals.) If you dont like change, youre going to like irrelevance even less.
General Eric Shinseki, Chief of Staff. U. S. Army [Other] admirals more frightened of losing than anxious to win Nelsons secret:
Characteristics of the Also rans* Minimize risk Respect the chain of command Support the boss Make budget *Fortune, article on Most Admired Global Corporations
Crossing the Unknown Sea: Work as a Pilgrimage of Identity, by David Whyte You have set sail on another ocean without star or compass going where the argument leads shattering the certainties of centuries. Janet Kalven, Respectable Outlaw
My Story. Best is not Good enough!* *Suggests a linear measurement rod Point of View!/Point of
Difference! TomResolution2005 (full year): Every project, small or large, this year will have to answer the question, Does this change the world? HP ran a banner ad, HAVE YOU CHANGED CIVILIZATION TODAY? Ill make that the first & last question I ask myself each day! TomResolution2005 (within the next 10 minutes): I will be hall monitor for my attitude concerning each & every human contact I have this year, starting IMMEDIATELY.
Do I exude Passion & Optimism & Connection of the sort that invariably engages others? (Hint: This applies as much to the 30-second exchange I have with a checkout clerk at Shaws grocery in Manchester VT as it does in a speech to very senior execs in Zurich on January 11.) Question #1 HOW WILL THIS PROJECT ENHANCE THE CUSTOMER EXPERIENCE IN A WAY THAT
DRAMATIC DIFFERENCES FROM OUR WILL IMPLEMENT COMPETITORS SO THAT WE CAN CAPTURE NEW CUSTOMERS, RETAIN OLD CUSTOMERS & GROW THEIR BUSINESS, BUILD OUR BRAND INTO A LOVEMARK
AND KICK-START THE TOP LINE ? 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 Thomas J. Peters 1942 2___ HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM!
T. J. Peters 1942 2--- C.I. Man of the Year: He Made Some Processes A Little Better M. GHANDI
GRAND PRIZE, CONTINUOUS IMPROVEMENT, SPINNING WHEEL DIVISION! W.S. CHURCHILL HE BROUGHT WWII
IN ON BUDGET! T. J. Peters 1942 2--- HE WAS A PLAYER! The only reason to give a speech is to change the
world. JFK To do something well is so worthwhile that to die trying to do it better cannot be foolhardy. It would be a waste of life to do nothing with ones ability, for I feel that life is measured in achievement not in years alone.
Bruce McLaren (Good As Gold: Being a New Zealander) Enterprise on Fire! On one small issue (SUBSTANCE) I had troubles in Saudi Arabia. My bedrock value added message works better in the U.S. & Ireland & Singapore & Dubai than in resource-rich Saudi. (And with the Chinese Breakout, expect energy demand & oil prices to remain stratospheric.) But it went well. Hence, In fact, I had a mini-epiphany. Ive encapsulated it in an alternate Title for my presentations: ENTERPRISE ON FIRE. I figured out that what Im really selling is not a detailed strategy (much as I see it that way), but a State of Mind. Said state of mind encompasses and glorifies:
Energy & Technicolor & WOW & Spirit & Entrepreneurial Spunk & Risk-taking & Wild and Woolly Innovation & Outrageously Cool Talent & Freaks & Service & Gaspworthy (my new favorite term) Experiences & Passion per se & Compassion & Grace & Independence and Individualism-at-Work & Inspired Failures & Great Leaps of Faith & Bet-the-Company (or Career) Projects. This Idea/agenda (ENTERPRISE ON FIRE) is as practical (necessary) in Saudi as in the U.S.A. (Hence, it apparently resonates in both.) (Hence, my continued employment!)
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 Everybodys Story. 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 Thaksin 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 Where Having Fun Is Now O.K. headline NYT/04.24.05/an article about Singapore
Its still illegal to chew gum in Singapore, but having fun in the formerly staid city-state is now officially sanctioned. Faced with the growing competition from Chinas rapidly expanding fashion industry and Italys economic challenges, city urban planners and young business leaders are moving forward with an estimated $1.3
billion megacomplex called La Citta della Moda that will serve as a [Milano] monument to fashion. Boston Globe (06.18.05); the complex will include shops, hotels, an exhibition center for fashion shows, a fashion museum and a graduate-level fashion university Ditto! Ireland
Singapore Denmark Sweden Germany Italy Bedrock & Biases. A Coherent Story: Context-Solution-Bedrock
Context1: Intense Pressures (China/Tech/Competition) Context2: Painful/Pitiful Adjustment (Slow, Incremental, Mergers) Solution1: Innovation (Purposeful disruption, Weird, Decentralization) Solution2: New Organization (Technology, Web+ Revolution, Virtual-BestSourcing,PSF nugget) Solution3: No Option: Aggressive Value-added Strategy (Services-Solutions-Experiences-DreamFulfillment Ladder) Solution4: Aesthetic VA Capstone
(Design-Brands- Lovemarks) Solution5: New Markets (Women, ThirdAge) Bedrock2: Talent (Best, Creative, Entrepreneurial, Women, New Schools) Bedrock3: Leadership (Passion, Bravado, Energy, Speed) My Story: Toms Ten.Five
1. Ideas Matter! 2. Change Not Sufficient!/Destruction Imperative! 3. Disruptive Technology Embraced! 4. Value-added Sprint I: PSF-Moment (Beyond the Cost Center)!/ Best Not Enough/R.POV (Remarkable Point Of View)! 5. Value-added Sprint II: Branding+/DreamMerchants All!/ Age of Aesthetics-Design! 6. Value-added Sprint III: Women-Boomer Strategic Market Opps! 7. Bold/Brash/Nervy Innovation! Weird Wins! FreakTime!
DramaticDifference! 8. Top/Quirky Talent!/Women Rule!/Re-imagine Ed! 9. Bedrock: Brand Inside-Itinerant Potential Organisms! 10. Leading: Sign Up for Breathtaking, Game-changing Crusades! (10.5. EXECUTE! BIAS FOR ACTION!) In conclusion (Toms Bakers Dozen) 1. Welcome to the Asian Century! 2. Permanence is a snare and a delusion.
3. Innovation must be a/the PREOCCUPATION. 4. The Top Line differentiates Winners from Losers. 5. Weird rules! 6. See #5 above! 7. Best Talent (Best Roster) wins! 7A. Leaders Do talent. (Period.) 8. Race Up the Value-added Ladder. (Or else.) 9. Dream Merchants will reign supreme! 10. Out O.O.D.A. the bastids! 11. Make it Cool!
12. Appoint an EVP/SOUB. (Now.) 13. Size KILLS! Everything You Need to Know about Strategy 1. Do you have awesome Talent everywhere? Do you push that Talent to pursue Audacious Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others would call problems? And what about your Extended Community of customers, vendors et al? 3. Is your Board of Directors as cool as your product offerings and does it have 50 percent (or at least one-third) Women Members? 4. Long-term, its a Top-line World: Is creating a culture that cherishes above all things Innovation and Entrepreneurship your
primary aim? Remember: Innovation not Imitation! 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving Bias for Action, to quote the co-authors of In Search of Excellence? 6. Do you routinely use hot, aspirational words-terms like Excellence and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and Lets make a dent in the Universe (the Word according to Steve Jobs)? Is Reward excellent failures, punish mediocre successes your de facto or de jure motto? 7. Do you subscribe to Jerry Garcias dictum: We do not merely want to be the best of the best, we want to be the only ones who do what we do? 8. Do you elaborate on and enhance Jerry Gs dictum by adding, We subscribe to Best Sourcingand only want to associate with the best of the best.
9. Do you embrace the new technologies with child-like enthusiasm and a revolutionarys zeal? 10. Do you serve and satisfy customers or go berserk attempting to provide every customer with an awesome experience that does nothing less than transform the way she or he sees the world? 11. Do you understand to your very marrow that the two biggest under-served markets are Women and Boomers-Geezers? And that to take advantage of these two Monster Trends (FACTS OF LIFE) requires fundamental re-alignment of the enterprise? 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is We care your implicit motto? DONT TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea,
13. Do you understand business mantra #1 of the 00s: then see the 12 above!) TPs CEOs Are Idiots19 1. UNDERestimate the Threat to their Existence; OVERestimate their Resilience. 2. Fail to spend Hyper-aggressively on IS/IT; fail to follow Gamechanger IS/IT Strategies; fail to put their CIO on the Board; fail to exploit fully [Revolution Now!] the Web. 3. Believe in [BIG] mergers as The Key to Offense & Defense.
4. Hire MBAs in large #s. 5. Recruit mostly from conventional sources, have a low tolerance for risktakers-freaks. 6. Are less than 24/7 Talent Fanatics. 7. Do too much Imitation/Benchmarking/ConstantImprovement, not enough Breathtaking/Disruptive Innovation; favor marketshare over MarketCreation. 8. Believe that process beats passion, analysis beats action. 9. Spend too much time in the Office, not enough time in the Field; fail to ColdCall at least One Customer per Week; are surrounded by sycophants; have low Tolerance for Contention. 10. ARE NOT LOVED BY FRONTLINE STAFF! 11. Do too much MicroSegmentation I: Grotesquely underestimate the Womens Marketand if they do more
or less get it, fail to understand the Strategic Transformation required to master it. 12. Do too much MicroSegmentation II: Grotesquely underestimate the Boomer-Geezer Market. 13. Have too few Women on the Executive Team, too few Women on the Board. 14. Board = OWMs. 15. Balk at Technicolor actions and languagee.g., WOW!, Lovemarks, DreamMarketing, InsanelyGreat. 16. Think Design is a frill, nicetynot the Fundamental Basis for Value Added. 17. Tolerate less than Excellence, do not insist upon Experiences that make me Gasp. 18. Deliver more on Short-term Earnings rather than Long-term Yearnings. 19. FAIL TO INSPIRE ME BY THE AUDACITY OF THEIR DREAMS. (Too often: Dream = Buy MarketShare, Get BIGGER, Cut Costs.)
Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press The winners in business have always played hardball. Unleash massive and overwhelming force. Exploit anomalies. Threaten your competitors profit sanctuaries. Entice your competitor into retreat. Approximately 640 Index entries: Customer/s (service, retention, loyalty),
4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0. ExIn*: 1982-2002/Forbes.com EI: $10,000 yields $140,050
DJIA: $10,000 yields $85,000 *Basket of 32 publicly traded stocks I. NEW BUSINESS. NEW CONTEXT. 1. Re-imagine Everything: All
Bets Are Off. Jobs New Technology Globalization Security Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.04 Reuters Plans To Triple Jobs at Site In India Headline/ New York Times/ World Business/08October2004/ 10% of total workforce in Bangalore by 2006
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 Gains 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
engineers, 28%/147K) Source: Where the Jobs Are/NYT/05.13.2004/data 1994-2004 Losses 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 past 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 The last few decades have belonged to a certain kind of person with a certain kind of mindcomputer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers. But the keys to the kingdom are changing
hands. The future belongs to a very different kind of person with a very different kind of mindcreators and empathizers, pattern recognizers and meaning makers. These peopleartists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers will now reap societys richest rewards and share its greatest joys. Dan Pink, A Whole New Mind Agriculture Age (farmers) Industrial Age (factory workers)
Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind The Dawn of the Creative Age Theres a whole new class of workers in the U.S. thats 38million strong: the creative class. At its core are the scientists, engineers, architects, designers, educators, artists, musicians and entertainers whose economic function is to create new
ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare and related fields, in which knowledge workers engage in complex problem solving that involves a great deal of independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the workforce (more than all of manufacturing) and accounts for more than half of all wage and salary income (some $2 trillion) almost as much as the manufacturing and service sectors together. Indeed, the United States has now entered what I call
the Creative Age. Americas Looming Creativity Crisis/ Richard Florida/ HBR/10.04 The global talent pool and the high-end, high margin creative industries that used to be the sole province of the U.S., and a critical source of its prosperity, have begun to disperse around the globe. A host of countriesIreland, Finland, Canada, Australia, New Zealand, among themare investing in higher education, cultivating creative people, and churning out stellar products, from Nokia phones to the Lord of the Rings movies... Many of these countries have learned from past U.S. success and are shoring up efforts to
attract foreign talentincluding Americans. The United States may well be the Goliath of the twentieth century global economy, but it will take just half a To stay innovative, America must continue to attract the worlds sharpest minds. And to do that, it needs to invest in the further development of its creative sector. Because wherever creativity goesand, by extension, wherever talent goesinnovation and economic growth are sure to follow. Americas Looming Creativity Crisis/Richard
dozen twenty-first-century Davids to begin to wear it down. Florida/HBR/10.04 AS A DEVELOPING COUNTRY YOU CAN LOWER INFLATION REDUCE CORRUPTION CUT YOUR BUDGET PRIVATIZE
AND STILL NOT GET RICH. BECAUSE YOU ARE NOT GENERATING KNOWLEDGE JUST PRODUCT. (North America, Western Europe, and Japan generated 84 percent of all scientific papers published during 1995.) Source: Juan Enriquez/As the Future Catches You flexible
employment with substantial social safety net Denmark, Holland: Must It Be Mfg?* Africa: Tanzania/A $523 Niger/M $741 Kenya/S $1022
Central America: Nicaragua/M $2366 Salvador/S $4497 EEurope: Ukraine/A $3816 Macedonia/M $5086 Poland/S $9051 SEAsia: Indonesia/A $3043 Brunei/M $16779* (*lotsa oil, no people) Malaysia/S $9068 Source: The Penguin State of the World Atlas/7th Ed/2003
Jobs Technology Globalization Security Three quarters of the FLAGS, BORDERS, ANTHEMS, and MONIES represented at the United Nations today Did not exist 50 years ago. States are falling apart at an unprecedented rate
Because governments and citizens do not understand Why technology is relevant to their daily lives and How it changes their future. Source: Juan Enriquez/As the Future Catches You THE FUTURE BELONGS TO SMALL
POPULATIONS WHO BUILD EMPIRES OF THE MIND AND WHO IGNORE THE TEMPTATION OFOR DO NOT HAVE THE OPTION OFEXPLOITING NATURAL RESOURCES. Source: Juan Enriquez/As the Future Catches You THE HEART OF CELERA IS THE WORLDS LARGEST PRIVATE SUPERCOMPUTER
FED 24 HOURS A DAY BY SEQUENCING ROBOTS AND CREATED-PROGRAMMEDCONTROLLED BY A DOZEN GREAT MINDS. Source: Juan Enriquez/As the Future Catches You The extraordinary Tech Revolution Is fed by a very few ZIP codes
Generating New Empires (and new Ghettoes). Source: Juan Enriquez/As the Future Catches You U.S. Patent Office/Patents Granted 1985 Venezuela Argentina Mexico
Brazil South Korea 15 12 35 ... 30 50 1998
29 46 77 88 3,362 Source: Juan Enriquez/As the Future Catches You IS/IT
A bureaucrat is an expensive microchip. Dan Sullivan/ consultant and executive coach UPS used to be a trucking
company with technology. Now its a technology company with trucks. Forbes
Life Sciences WE ARE BEGINNING TO ACQUIRE DIRECT AND DELIBERATE CONTROL OVER THE EVOLUTION OF ALL LIFE FORMS ON THE PLANET. Source: Juan Enriquez, As The Future Catches You
02.12.01 On February 12, 2001, anyone with access to the Internet Could suddenly look at a new atlas One containing the whole human genome.
Source: Juan Enriquez, As The Future Catches You In a couple of decades the worlds dominant language became strings of ones and zeroes. Your world and your language THE DOMINANT LANGUAGE AND ECONOMIC DRIVER OF THIS CENTURY IS GOING
TO BE GENETICS. are about to change again. Source: Juan Enriquez, As The Future Catches You Jobs Technology Globalization
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 Russia have been integrated into the global market economy, many of them highly educated workers, who can do Were talking about three billion people. just about any job in the world.
Craig Barrett/Intel/01.08.2004 Chinas size does not merely enable low-cost manufacturing; it forces it. Increasingly, it is what Chinese businesses and consumers choose for themselves that determines how the American economy operates. Ted Fishman/The
Chinese Century/ The New York Times Magazine /07.04.04 Ho Hum: 11.28.04 The man who may yet wield most influence over the dollar is not George Bush, nor even Alan Greenspan. His name is Zhou Xiaochuan, governor of the Peoples Bank of China. His importance is a measure of the shifting balance
of global economic power from West to East. Headline, The Business (UK), 28/29 November Chinese and Indian giants go head to head in search for oil. Headline, The Business (UK), 28/29 November Dr Stephen Minger is a top stem cell researcher and heads a team of scientists at Kings College Londons new Wolfson
Center. He is familiar with high-tech labs and machines with million-pound price tags, but what he saw in Beijing and Shanghai left him picking his jaw up off the floor. I came back blown away by the whole thing, he says. It was mindboggling. FTmagazine/11.27/How Did That Happen? ASIA IS STEM CELL CENTRAL: Singapore and Others Are Racing
to Grab the Lead in a Promising Field Headline/BW/01.10.2005 Let China sleep, for when she awakes she will shake the world.
Let China sleep, for when she awakes she will shake the world. Napoleon Enjoy It While It Lasts! South Korea just became in 2004 earths #1 ship builder, edging out Japan. Wow! Congrats! But China
(where else!) is on schedule to strip SK of its hard-earned prize by 2015, the New York Times reported in January (Korean Shipbuilders See Chinas Shadow). South Korea just became in 2004 earths #1 ship builder, edging out Japan. Wow! Congrats! But China (where else!) is on schedule to strip SK of its hardearned prize by 2015, the New York Times reported in January (Korean Shipbuilders See Chinas Shadow).
The leader of the SKorean pack is the peerless engineering firm Hyundai. And ta da guess what Hyundais new strategy is? You doubtless got it in one: Race up, up, up the value-added ladder. Hyundai is dropping oil tankers and ore carriers and pushing the likes of ultra-sophisticated LNG carriers and offshore oil platforms.
You get an educated workforce, remarkable infrastructure, a lot of government support. These [Southeast Asian] governments have made life sciences a top priorityand they have a great venture capital community there. Glenn Rice, VP Pharmaceutical Discovery and Development, SRI International (On the rapid migration of drug discovery from the U.S. at a 20% to 40% cost saving Rice adds that 40% to 60% of U.S. postdocs
are from China and Taiwan) From: Stanford Business /August 2004 Forget India, Lets Go to Bulgaria Headline, BW/03.04, re SAP, BMW, Siemens et al. near-shoring
Jobs Technology Globalization Security This is a dangerous world and it is going to become more dangerous. We may not be
interested in chaos but chaos is interested in us. Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century We are in a brawl with no rules.
Paul Allaire 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: The Peters6 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 2. Re-imagine Permanence: The Emperor Has No Clothes! Re-imagine Permanence: The Emperor
(The Emperor Is an Idiot.) Has No Clothes! Big Company Marketing Tip of the Week:*
Want to increase sales overnight? Give away the product! *Thank you, General Motors ! Franchise Lost TP:
How many of you  really crave a new Chevy? NYC/IIR/061205 The Green Machine That Could Be Detroit: What if an automaker
embraced the environment? headline/NYT/07.05 Toyota To Add 10 Hybrids To Lineup: Carmaker Projects 600,000* Sales Annually Headline/USA Today/08.05 *25% U.S. sales within this decade Jeffrey Immelt Turns
Green. Has General Electric Gone Ecomad? cover story/Forbes/08.05 Once upon a time, there was a perpetual, comforting night-time glow in the little boys bedroom window And then
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 07.05/Huge Layoffs HP Kodak GM I am often asked by would-be entrepreneurs seeking escape from life
within huge corporate structures, How do I build a small firm for myself? The answer Buy a very large one and just wait. seems obvious: Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics Exit, Stage Right CEO departure rate, 1995-2004: +300% Source: Booz Alen Hamilton (per USA Today/06.13.05) Headhunter Excellence? (CEO Performance vs S&P 500)
Korn Ferry/Tom Neff: +1.1% Heidrick & Struggles/ Gerry Roche: -5.2% And now Mittal (Worlds #1) 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) 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 BUILT TO DETERIORATE! When it comes to investing, I am old school. Buy a good stock, stick it in the drawer and when you check back years later the stock should be worth more. Theres only one problem. When I checked the drawer recently it was full of clunkers, including Lucent, down 94 percent from its 1999 high. Maybe once upon a time buy and hold was a viable strategy. Today, it no longer makes sense.Charles Stein/ Investment Strategies Must Shift with Realities/Boston Globe/10.10.04
A sample of Steins Blue Chip-turned-clunker examples: Fannie Mae (featured in Collins Good to Great). Coke. (Clunker, make that Stinker.) Merck. (The mightiest fallstock down 63 percent since 2000; tumble preceded Vioxx) Uh Microsoft. (Microsofts stock price is no higher today than it was in 1998.) It is not clear there is such a thing as a Blue Chip, Shawn Kravetz, president of Boston-based hedge fund Esplanade Capital, told Stein. Kravetzs point is a serious one, Stein continues. Greatness is not permanent. This process of creative destruction isnt new. But with the world moving ever faster, and with competition on steroids, the quaint
notion of buying and holding is hopelessly out of step. 3. Re-imagine: Innovate or Die! A380! A fury that the future was always being hijacked by people with
smaller ideas by his first partners who What drove Trippe? did not want to expand airmail routes; by nations that protected flag carriers with subsidies; by the elitists who regarded flight, like luxury liners, as a privilege that could only be enjoyed by the few; by the cartel operators who rigged prices. The democratization he effected was as real as Henry Fords. Harold Evans on Juan Trippe, the PanAm boss who
brought the B747 to life (WSJ/02.24.2005) A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success. Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)
Value innovation is about making the competition irrelevant by creating uncontested market space. We argue that beating the competition within the confines of the existing industry is not the way to create profitable growth. Chan Kim &
Rene Mauborgne (INSEAD), from Blue Ocean Strategy (The Times/London/01.20.2005) Re-imagine General Electric Welch was to a large degree a growth by acquisition man. In the late 90s, Immelt says, we became business traders, not business growers. Today organic growth is absolutely the biggest task of everyone of our companies. If we dont hit our organic growth targets, people are not going to
Immelt has staked GEs future growth on the force that guided the company at its birth and for much of its history: breathtaking, mindblowing, world-rattling technological innovation. GE Sees the Light/Business 2.0/July 2004 get paid. Immelt on Innovation breakthroughs: Pull out and
fund ideas in each business that will generate >$100M in revenue; find best people to lead (80 throughout GE) Source: Fast Company/07.05 Management today, per Jeff Immelt: from how to
(process flow charts) to when and where (growth markets, growth trends, customers, segmentation) Source: Fast Company/07.05 Jeffrey Immelt Turns Green. Has General Electric Gone Ecomad? cover story/Forbes/08.05
Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes money, but Im not sure were actually innovating. Our challenge is to take nanotechnology into the future, to do personalized medicine Jeff Immelt/Fast Company/07.05
Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasnt turned his back on the old ways. But in his
GE, the new imperatives are risktaking, sophisticated marketing and, above all, innovation. BW/032805 Big Pharmas Blinders: The Blockbuster Mentality Crimps Innovation (Headline) Big Pharma appears remarkably risk averse compared to the armada of small biotech companies that increasingly produce the most novel drugs. Why? Its all about the type of organization
that the large drug-makers have become. Hugely profitable thanks to a few blockbusters, Big Pharma is far too focused on looking for the next bestseller. That means spending lots of development dollars on relatively safe bets, such as statins But Big Pharmas focus on finding the next blockbuster means it is passing up an opportunity to deliver important breakthroughs. Source: BusinessWeek/11.29.2004 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 When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact.
Warren Buffet (quoted in the HP article): 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 Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companies those that failed to make a leap or, if they did,
failed to sustain itoften tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness. Jim Collins/ Time/11.29.04 This was a big bet that didnt pay off. At bottom, they made a huge error in asserting
that the merger of two losing computer operations, HPs and Compaqs, would produce a financially fit computer business. Fortune on HP-Compaq/02.14.05 Duh! Blockbuster mergers tend to be duds for stockholders of the acquiring company. In seven of the nine mergers
valued at more than $50 billion, the acquirers share price is down an 46% average of from pre-merger levels, according to FactSet Mergerstat, a research firm from Santa Monica. Source: Time (Time candidly points out, TW and AOL were the
worst, wiping out 80% of shareholder value.) Sanford Weill, Citigroups Former Leader, Frustrated As Empire Is Dismantled Headline/NYT/07.21.05 07/05: More Breaking Up? HP?
Citigroup? Morgan Stanley? Viacom (Done) GM/Finance? DaimlerChrysler? Ford/Hertz? Etc Etc Shremp is one of the last
dinosaurs of Germany Inc. He represents a strategy of acquiring assets and building empires that just didnt work. Arndt Ellinghorst/ analyst/Dresdner Kleinwort Wasserstein I dont believe in You
dont get better by being bigger. You get worse. economies of scale. Dick Kovacevich/ Wells Fargo/Forbes08.2004 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)
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) Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
Omnicom's acquisitions: not for size per se; buying talent; deepen a relationship with a client. (Advertising Age/ 07.05) Omnicom very simply is about talent. Its about the acquisition of talent, providing the atmosphere so talent is attracted to it. (John Wren)
Market Share, Anyone? 240 industries: Market-share leader is ROA leader the time 29% of Source: Donald V. Potter, Wall Street Journal
Spinoffs perform better than IPOs track record, profits freed from the confines of the parent more entrepreneurial, more nimble Jerry Knight/Washington Post/08.05 Market Share, Anyone? 240 industries; market-share leader is ROA leader 29% of the time
Profit / ROA leaders: aggressively weed out customers who generate low returns Source: Donald V. Potter, Wall Street Journal Duh! Combination of Dean
Witter, Morgan Stanley Started Battle of Cultures Headline/USA Today/061405 (upon the departure of CEO Phil Purcell) (A Strategist Who Struggled as a ManagerHeadline/NYT/061405) One More Time It illustrates
why mergers are a dysfunctional cog in the capital allocation machine. Even though the deals rarely result in significantly more profitable The Symantec-Veritas deal is like all the others in a broad sense: companies, institutional investors vote for them because they are forced into a corner: a no vote usually leads to a big drop in the stock price. Academic research suggests that after they are completed, large stock-for-stock mergers like the Symantec-Veritas deal rarely produce companies that are outstanding
For that matter, few mergers of any kind lead to more profitable companies. Gretchen Morgenson/NYT/06.19.05 performers. The dearth of synergies in the Symantec-Veritas proposal underscores one of the The two companies products are so different that they should not be combined at all. Gretchen Morgenson
deals main problems: This is a classic case of a really well-run business with a great management team that was looking around for things to buy for the sake of being bigger. Greg Taxin/institutional investment advisor One might ask, why did the management team and board approve this? Sins #1 & #2 & #3
Marriage of slugabeds All things to all people Middling offering 48 Hours 0614: Morgan Stanley (de-merge?) 0614: HP (de-centralize) 0615: Viacom (de-merge) = Focus!
Costco *$17/hour (42% above Sams); very good health plan; low t/o, low shrinkage *Low margins (When I started, Sears, Roebuck was th Costco of the country, but they allowed someone to come in under themJim Sinegal) Source: How Costco Became the Anti-Wal*Mart/NYT/07.17.05
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
No Wiggle Room! Incrementalism is innovations worst enemy. Nicholas Negroponte Perfection is static, even boring. Imitations
are redundant. Your true unvarnished self is what is wanted. Anna Quindlen, Being Perfect Just Say No I dont intend to be known as the King of the Tinkerers.
CEO, large financial services company Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to
Things. Big Roger Enrico, former Chairman, PepsiCo 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 What drove Trippe? A fury that the future was always being hijacked
by people with smaller ideas by his first partners who did not want to expand airmail routes; by nations that protected flag carriers with subsidies; by the elitists who regarded flight, like luxury liners, as a privilege that could only be enjoyed by the few; by the cartel operators who rigged prices. The democratization he effected was as real as Henry Fords. Harold Evans on Juan Trippe, the PanAm boss who brought the B747 to life (WSJ/02.24.2005)
Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec They say
Improve. I say Re-imagine! Strategic Thrust Overlay* Sysco Microsoft (Inet, Search) GE (6-Sigma, Workout, etc.) GSK (7 CEDDs) Apple (Mac) Hyundai (et al.) (Electronics, etc.)
*Different from Skunkworks Glaxo: 7 CEDDs Centers of Excellence for Drug Discovery* *IBMs Swat teams Ready. Fire! Aim. The Milken model, in a nutshell, is to stimulate research by drastically cutting
the waiting time for grant money, to flood the field with fast cash, to fund therapydriven ideas rather than basic science, to hold researchers he funds accountable for results, and to demand collaboration across disciplines and among institutions, private industry, and academia. Fortune/ The Business, The Man Who Changed Medicine (11.28-29) 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 Innovation Index: How many of your Top 5
Strategic Initiatives/Key Projects score 8 or higher (out of 10) on a Weirdness/Profundity/ Game-changer Scale? Follow the 4F
strategy* *Find a Fellow Freak Faraway Bottom line: No promotion to senior levels of public or private enterprise should ever again be granted to anyone who does not present a CV saturated by a clear and compelling demonstration of sustained commitment to Radical Change. Do we wish for good strategists? Why not! But the heart of the matter goes far beyond any plan, no matter how brilliant. The heart of the matter is Heart &
Will ... a record of upsetting apple carts, dislodging establishments, and fundamentally altering deep-rooted cultures to embrace change of the most primal sort. I titled my most recent book Re-imagine! Business Excellence in a Disruptive Age. Excellence in a disruptive age is not excellence amidst placid waters. The notion of excellence itself changes ... dramatically. We need our public and private Churchills, leaders who can re-imagine, who can call forth wellsprings of daring and guts and spirit and spunk, from one and all, to topple the way things may have been for many generationsand who inspire us
to venture forth into todays and tomorrows whitewaters with insouciance and bravado and determination. Re-imagine: Four (Count em) Guaranteed Answers! Innovate!
Find Freaks!* *Talent Focus! Listen to Kevin!
Kevin Roberts Credo 1. Ready. Fire! Aim. 2. 3. 4. 5. 6. 7. 8. 9.
If it aint broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff.
10. Avoid moderation! Step #1: Buy a Mirror! The First step in a dramatic organizational change program is obvious dramatic personal
change! LH/RG/?? Every project we undertake starts with the same question: How can we do what has never been done before?
Stuart Hornery, Lend Lease This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining that the world will
not devote itself to making you happy. GB Shaw/Man and Superman To Be somebody or to Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) All of our artistic and religious traditions
take equally great pains to inform us that we must never mistake a good career for good work. Life is a creative, intimate, unpredictable conversation if it is nothing elseand our life and our work are both the result of the way we hold that passionate conversation. David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity
Tell me, what is it you plan to do with your one wild and precious life? Mary Oliver 3A. The SE22: Origins of Sustainable
Entrepreneurship SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of todays $$$ winners (Apple, Cirque du Soleil, Microsoft, Nokia, FedEx)
3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use Strategic Thrust Overlays to Attack Monster Problems (Sysco, GSK, GE, Microsoft)
6. Establish a Be on the COOL Team Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically Noisy (Intel, Apple, Microsoft, CitiGroup, PepsiCo) 8. Culturally as well as organizationally Decentralized (GE, J&J, Omnicom)
9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo, Time Warner) Culture Change: Not Required! The great thing is that Apples DNA hasnt changed. The place where Apple has been standing for the last two decades is exactly where computer technology and consumer electronics
markets are converging. So its not like were having to cross the river to go somewhere else; the other side of the river is coming to us. Steve Jobs/Fortune/02.21.05 Decentralization is not a piece of paper. Its not me. Its either in your heart, or not. Brian
Joffe/BIDvest SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizingtireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partnersespecially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Dont overdo pursuit of synergy (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it dont obsess on how it
fits the business model. (3M, J & J) 15. Find and Encourage and Promote Strong-willed/Hypersmart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs/Intrapreneurs (3M, Microsoft) 17. Ferret out Talent anywhere and everywhere/No limits approach to retaining top talent (Nike, Virgin, GE, PepsiCo) DePuySpine/J&J* 70/3 50+
game-changers! *Still decentralized after all these years! SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News
Corp/Fox, PepsiCo) 21. Bi-polar Top Team, with Unglued Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin) WallopWalmart16
Tom Peters/0720.2005 The Small Guys Guide: Wallop Walmart16 *Niche-aimed. (Never, ever all things for all people, a mini-Wal*Mart.) *Never attack the monsters head niche business and lukewarm customers.) on! (Instead steal
*Dramatically different (La Difference ... within our community, our industry regionally, etc is as obvious as the end of ones nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) *Compete on value/experience/intimacy, not price. (You aint gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)
*Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!) The Small Guys Guide: Wallop Walmart16 *Hands-on, emotional leadership. (We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!) *A community hell out of it!)
star! (Sell local-ness per se. Sell the *An incredible experience, from the first to last momentand then in the follow-up! (These guys are cool! They get me! They love me!) *DESIGN! (Design is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the professional
services.) The Small Guys Guide: Wallop Walmart16 *Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) *Sophisticated use of information technology . (Small-ish is no excuse for small aims/execution in IS/IT!) *Web-power! (The Web can make very small very big if
the product-service is super-cool and one purposefully masters buzz/viral marketing.) *Innovative! (Must keep renewing and expanding and revising and re-imagining the promise to employees, the customer, the community.) The Small Guys Guide: Wallop Walmart16 *Brand-Lovemark* (*Kevin Roberts) Maniacs! (Branding is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a localregional-niche lovemark.)
*Focus stupid.) on women-as-clients. (Most dont. How *Excellence! (A small player per me has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the rightone damn day and
client experience at a time!to beat the Big Guys in your chosen niche!) Bruce Mau/Incomplete Manifesto Bruce Mau/Incomplete Manifesto 1. Allow events to change you. 2. Forget about good. Good is a known quantity. Good is what we all
agree on. Growth is not necessarily good. Growth is an exploration of unlit recesses that may or may not yield to our research. As long as you stick to good you'll never have real growth. 3. Process is more important than outcome. When the outcome drives the process we will only ever go to where we've already been. 4. Love your experiments (as you would an ugly child). Joy is the engine of growth. Exploit the liberty in casting your work as beautiful experiments, iterations, attempts, trials, and errors. Take the long view and allow yourself the fun of failure every day. 5. Go deep. The deeper you go the more likely you will discover
something of value. 6. Capture accidents. The wrong answer is the right answer in search of a different question. 7. Study. Bruce Mau/Incomplete Manifesto 8. Drift. Allow yourself to wander aimlessly. Explore adjacencies. Lack judgment. Postpone criticism. 9. Begin anywhere. John Cage tells us that not knowing where to begin is a
common form of paralysis. 10. Everyone is a leader. Growth happens. Whenever it does, allow it to emerge. Learn to follow when it makes sense. Let anyone lead. 11. Harvest ideas. Edit applications. 12. Keep moving. The market and its operations have a tendency to reinforce success. Resist it. 13. Slow down. 14. Dont be cool. Cool is conservative fear dressed in black. 15. Ask stupid questions. 16. Collaborate. The space between people working together is filled with
conflict, friction, strife, exhilaration, delight, and vast creative potential. Bruce Mau/Incomplete Manifesto 17. . Intentionally left blank. Allow space for the ideas you havent had yet, and for the ideas of others. 18. Stay up late. Strange things happen when youve gone too far, been up too long, worked too hard, and you're separated from the rest of the world. 19. Work the metaphor. Every object has the capacity to stand for something other than what is apparent. 20. Be careful to take risks.
21. Repeat yourself. If you like it, do it again. If you dont like it, do it again. 22. Make your own tools. Hybridize your tools in order to build unique things. 23. Stand on someones shoulders. 24. Avoid software. The problem with software is that everyone has it. 25. Dont clean your desk. 26. Dont enter awards competitions. Just dont. Its not good for you. Bruce Mau/Incomplete Manifesto 27. Read only left-hand pages. Marshall McLuhan did this. By decreasing
the amount of information, we leave room for what he called our noodle. 28. Make new words. Expand the lexicon. The new conditions demand a new way of thinking. The thinking demands new forms of expression. The expression generates new conditions. 29. Think with your mind. Forget technology. Creativity is not device-dependent. 30. Organization = Liberty. Real innovation in design, or any other field, happens in context. That context is usually some form of cooperatively managed enterprise. Frank Gehry, for instance, is only able to realize
Bilbao because his studio can deliver it on budget. The myth of a split between creatives and suits is what Leonard Cohen calls a 'charming artifact of the past.' 31. Dont borrow money. Once again, Frank Gehrys advice. By maintaining financial control, we maintain creative control. Its not exactly rocket science, but its surprising how hard it is to maintain this discipline, and how many have failed. 32. Listen carefully. 33. Take field trips.
Bruce Mau/Incomplete Manifesto 34. Make mistakes faster. 35. Imitate. Dont be shy about it. We have only to look to Richard Hamilton and his version of Marcel Duchamps large glass to see how rich, discredited, and underused imitation is as a technique. 36. Scat. When you forget the words, do what Ella did: make up something else ... but not words. 37. Break it, stretch it, bend it, crush it, crack it, fold it. 38. Explore the other edge. Try using old-tech equipment made obsolete by an economic cycle but still rich with potential.
39. Coffee breaks, cab rides, green rooms. Real growth often happens outside of where we intend it to, in the interstitial spaces what Dr. Seuss calls the waiting place. 40. Avoid fields. Jump fences. Disciplinary boundaries and regulatory regimes are attempts to control the wilding of creative life. 41. Laugh. 42. Remember. Growth is only possible as a product of history. Without memory, innovation is merely novelty. History gives growth a direction. 43. Power to the people. Play can only happen when people feel they have control over their lives. We can't be free agents if were not free.
4. Re-imagine the Roots of Innovation: THINK WEIRD the High Value Added Bedrock. FLASH: Innovation is
easy ! 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 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) On Great Innovation Leaps Tune into weak signals inside the firm A good place to look for new ideas is
distant foreign subsidiaries, smaller business units and affiliated companies that the company does not even wholly own. For example, Diageos highly successful Smirnoff Ice originated in Australia as Stolichnaya before it was picked up by the corporate marketing department as having global potential. Julian Birkenshaw, Rick Delbridge & John Bessant, A Leap into the Unknown, FT/09.17.04 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 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 The Answer 1* Friendly, Pioneering, Mid-size Customer [F4**] = Sparkling Demo/s = Attractant *Or 2 or 3 or 4 or 5 **Find a Fellow Freak Faraway
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. W. Chan Kim & Ren Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/08.11.03 Benchmarking? Try the Corner Deli or the Local Hairdresser! Secret Service: Hidden Systems that Deliver Unforgettable Service/John DiJulius/John Roberts Hair Studio & Spa. The Fantastic Hairdresser/former London
hairdresser Alan Austin-Smith. Zingermans Guide to Giving Great Service/Zingermans co-founder Ari Weinzweig/Ann Arbor MI deli/Mission statement: We share the Zingermans experience selling food that makes you happy, giving service that makes you smilein passionate pursuit of our mission, showing love and caring in all our actions to enrich as many lives as we possibly can. (Dont you wish your bank or phone company or car dealer would live byor even vaguely imagine living bysuch a Credo?)
Dont benchmark, futuremark! Impetus: The future is already here; its just not evenly distributedWilliam Gibson GH: Get better
vs Get different The short road to ruin is to emulate the methods of your adversary. Winston
Churchill 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 NeimanMarcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? Its like trying to drive
The thing that all these companies have in common is that they have nothing in common. They are looking in the rearview mirror. 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 How do dominant companies lose their position? Two-thirds of the time, they pick the wrong competitor to worry about. Don Listwin, CEO,
Openwave Systems/WSJ/06.01.2004 (commenting on Nokia) Kodak . Fuji GM . Ford Ford . GM IBM . Siemens, Fujitsu Sears Kmart Xerox . Kodak, IBM Researchers asked subjects to count the number of times
ballplayers with white shirts pitched a ball back and forth in a video. Most subjects were so thoroughly engaged in watching white shirts that they failed to notice a black gorilla that wandered across the scene and paused in the middle to beat his They had their noses buried in their work that they didnt even see the gorilla. What gorillas are moving through your chest.
field of vision while you are so hard at work that you fail to see them? Will some of these 800-pound gorillas ultimately disrupt your game? Jerry Wind and Colin Crook, The Power of Impossible Thinking: If You Can Think Impossible Thoughts, You Can Do Impossible Things Innovation! NOT
Imitation Employees: Are there enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director Why Do I love Freaks?
(1) Because when Anything Interesting happens it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make uswho-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky timessee immediately above.) (5) Freaks are the only (ONLY) ones who succeedas in, make it into the history books.
(6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of usand our organizationsare in ruts. Make that chasms.) Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive
deviance and fan the flames. Richard Tanner Pascale & Jerry Sternin, Your Companys Secret Change Agents, HBR Some people look for things that went wrong and try to fix them. I look for things that went right, and try to build off them.
Bob Stone (Mr ReGo) The Ten Faces of Innovation/Tom Kelley *The Anthropologist. Master of human behavior gets the user. *The Experimenter. Mr/Ms Fast Prototyper. *The Cross-pollinator. Explores odd connections. *The Hurdler. Master remover of B.S. roadblocks. *The Collaborator. Brings intriguing combinations of people together. *The Director. Brings out the creative best from an odd mix of talents.
*The Experience Architect. Turns products into performances. *The Set Designer. Creates fabulous office environments that foster constant innovation. *The Caregiver. Anticipates customer needs like a magician. *The Storyteller. Creates narratives that capture the spirit of the group and its products/services/experiences. global innovation networks vs research
in large monolithic companies Source: George Colony/Forrester Research 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 Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D
spending!* *Inspired by Hummingbird * Its crazy out! * Its only gonna get crazier! * Best is not good enough! * Innovators win! (* 70/3 is Very Cool!) * Dramatic Difference is a must! * Copycats & bulk-up artists lose!
(* Id rather work for J&J than P&G!) * Passion rules! * Lovemarks beat brands! * Goal #1: Start a Movement! * He/She who has the Best Story wins! * Use the Web! * Get up earlier than the next guy! * Two ears, one mouth yadda yadda! * Remember your Thank You notes!
Boards: Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable Jeffrey Sonnenfeld, Yale School of Management We become who we hang out
Measure Strangeness/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board 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 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
Button-down Org Acquire for market share Suck up to biggest customers Pursue strategic vendors Bigger is better Accept assignments as given Hire 4.0s from top schools Promote when theyve paid their dues Appoint a prestigious board
Hang out with my pals
R.A.F. Be professional at all times/ Honor thine elders . Acquire for innovation Partner with cool customers Seek out pioneering vendors
Break it up to refresh Reframe all tasks to innovate Hire intriguing, wherever Promote tomorrow if the work product is weird and WOW Appoint an interesting, headstrong board Take a freak to lunch today F.F.F. Stay loose, stay cool/The hell
with thine elders Renewal = The Weird 10 = The High S.D. Enterprise/Individual Pioneer [Weird] Acquisitions Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios S.D./Weirdness Index] Divide & Conquer/Sell-by [Lessons from the Bees, Sir Richard, Gary H.] Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish Six Sigma Talent/Appoint a Weird Board Weed Un-weird [One Sigma Talent, etc.] Hang out with Weird [Univ. of Weird]/Lunch with Weird/ Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania] Sense of Humor [Rhapsodize Over Thine Cool Failures!] Re-enforce a Culture of Disrespect/PassionatePiracy
II. NEW BUSINESS. NEW TECH. 5. Re-imagine Organizing I: IS/IT as Disruptive Tool! Re-imagine
Organizing I: IS/IT as Game Changer! (Or: Why Bother?) We all live in Dell-Wal*MarteBay-Google World! Terrorists Turn to Web as Base of
Operations headline/ washingtonpost.com/080805 Attacking Iraq from a Nevada Computer: Unmanned Predators Are Piloted in US Headline/ Boston Globe/04.03.05 KRAFT, Americas largest food company,
built its empire by devouring smaller firms, but it is now selling some of its properties because of the demands of the worlds biggest retailer. Wal-Mart has become so powerful that it can tell its suppliers which brands to own and which to sell, based on which goods are selling in its thousands of shops across the U.S. The Business (UK), 28/29 November, Kraft sell-offs on the menu as Wal-Mart bites.
Productivity! McKesson 2002-2003: Revenue +$7B Employees +500 Source: USA Today/06.14.04 UPS used to be a trucking company with technology.
Now its a technology company with trucks. Forbes 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) 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 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.
5% F500 have CIO on Board: While some of the worlds most admired companiesTesco, Wal*Mart are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost
productivity, competitiveness and shareholder value. Source: Burson-Marsteller Sysco ! * Aggressive/$$$$ * Bold/GameChanger * Bold/Creative Destruction * Cool Supplier Portfolio
* Web Fanaticism Power Tools for Power Solutions/ Strategies! TP Toms USP I really think I offered the Right Challenge to your (our!) customers .... that "these" are
"radical tools" for "radical times." That they should not be wasted on non-radical projects. My Goal was to be Tough & Mean on that point. My "HP Sales Pitch" (for what little it's worth): Don't come to us for piss-ant project support; come to us if you aim to dramatically alter your industry's dynamics. (That's essentially what I said to the shipping guy I met one-to-one.) t
Great email from JUDITH SINNARD (smarteplans.com): Judith has a little idea. She provides eServices to the Houston real estate community. She measures rooms at a MLS home, provides at a Click dimensions thereof as well as photos of each room. Little deal? Big deal? The average days-onmarket for one of her homes was 33 last year, compared to the average of 82 days. Little idea. Big industry! Big difference!
6. Re-imagine Organizing II: What Organization? Organizations will still be critically important in the world, but as organizers, not
employers! Charles Handy Vehicle brand owner Ford: (design, engineer, and market, but not actually make) Source: The Company, John Micklethwait & Adrian Wooldridge
07.04/TP In Nagano Revenue: $10B FTE: 1* *Maybe Dont own nothin if you can help it. If you can, rent your
shoes. F.G. 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) Not out sourcing Not off shoring Not near shoring Not in sourcing but Best Sourcing
THE NEW INSTANT COMPANIES: Cheap Design Tools. Offshore Factories. Free Buzz Marketing. How Todays Startups Are Going from Idea to $30 Million HitOvernight Business 2.0/June 2005 (Mary Janes) global innovation
networks vs research in large monolithic companies Source: George Colony/Forrester Research Big Idea: Corporation as Mega-PSF (Professional Service Firm*) * Virtual Collection of Entrepreneurially-minded
Professionals (Talent/Roster) Creating/Applying Intellectual Capital (Work Product) 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 Bill & Search Limits to outsourcing: Managers are the dinosaurs of our modern organizational ecology. The Age of Management is finally coming
to a close. The need for overseers, surrogate parents, scolds, monitors, functionaries, disciplinarians, bureaucrats, and lone implementers is over, while the need for visionaries, leaders, coordinators, coaches, mentors, facilitators, and conflict resolvers is steadily increasing, pressing itself upon us. ... Nearly unnoticed, a far-reaching organizational transformation has already begun, based on the idea that management as a system fails to open the heart or free the spirit. This revolution is attempting to turn inflexible, autocratic, static, coercive bureaucracies into agile, evolving,
democratic, collaborative, self-managing webs of association. The End of Management, Kenneth Cloke & Joan Goldsmith 7. Re-imagine Organizing III: The Power of We Re-imagine Organizing II: The
Power of We (The Whole World Is Rocked.) e-piphany epicurious.com THE POWER OF US: Mass Collaboration on
THE INTERNET Is Shaking Up Business Cover/BusinessWeek/06.20.05 Globalization1.0: Countries globalizing (1492-1800) Globalization2.0: Companies globalizing (1800-2000) Globalization3.0 : Individuals collaborating
& competing globally (2000+) Source: Tom Friedman/The World Is Flat Skype: 41M users, 150K/day a self-sustaining phone system that requires no central capital investmentjust the willingness of its users to share (BW/06.05)
Its almost like an organism (Skype CEO Niklas Zennstrom) The nearly 1 billion people online worldwidealong with their shared knowledge, social contacts, online reputations, computing power, and moreare rapidly becoming a collective force of unprecedented power. For the first time in human
history, mass cooperation across time and space is suddenly economical. BW/06.20.05 Theres a fundamental shift in power happening. Everywhere, people are getting together and, using the Internet, disrupting whatever activities theyre
involved in. Pierre Omidyar, founder, eBay What sets the new technologies apart from those of the Internets first generation is their canny way of turning self-interest into social benefitand real economic value. BW/06.05
The architecture of participation Tim OReilly/Tech-book publisher Give a little, take a lot. open source
motto (BW cover/0131/on Linux) Wikipedia.org Blogging made my year! TP Portal! Conversations! Collaboration! New value!
8. Re-imagine the Customer Relationship in The Age of IS/IT: Going 1t1! Re-imagine the Customer Relationships:
Go 1t1! (Where the Loot Is!) Mass Narrowcast 1t1: DBM/CRM 1t1: Web 1t1: Direct Mail/Telemarketing 1t1: Door-to-door Reps-Parties/MLM
Growth Projections: 2003-2010 Narrowcast media 13.5% Mass media 3.5% Source: Sanford C. Bernstein & Co www.englishcut.com. Money that used to go for 30-second
network spots now pays for closed-circuit sports programming piped into Hispanic bars and for ads in Upscale, a custompublished magazine distributed to black barber shops. We are a big marketer we are not a mass marketer, says Lawrence Light, McDonalds chief marketing officer. BW/0704 Old
New Consumers Couch potatoes, passively receive whatever the networks broadcast Empowered media users control and shape the content, thanks
to TiVo, iPod, and the Internet Aspirations To keep up with the crowd To stand out from the crowd TV Choice
Three networks plus a PBS station, maybe Hundreds of channels, plus video on demand Magazines Age of the big glossies: Time, Life, Look, and
Newsweek Age of the special interest: A magazine for every hobby and affinity group Ads Everyone hums the Alka-Seltzer jingle
Talking to a group of one: Ads go ever narrower Brands Rise of the big, ubiquitous brands, from Coca-Cola to Tide
Niche brands, product extensions, and mass customization mean lots of new variations Source: BusinessWeek/07.12 Direct Sellings Potent Promise -- This industry is global and is growing exponentially. Roger Barnett, investment banker specializing in direct selling
-- DSA: 175,000 Americans sign up per week (475,000 world wide) -- All industries (wellness, telecoms, financial services Crayolas Big Yellow Box) -- Global: Avon, 70%; Tupperware, 75%; China & India huge -- MLMs share of direct selling: 56% in 1990 to 82% in 2003
Case: CRM 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. [email protected]$40K eLearning Study/R&D! Face time Blog
Web site eLearn initiatives reOrg TPC/focus on core Build BRAND Full service Expand service Experiment with tech, etc, etc Experience/WOW/Unique III. NEW
BUSINESS. NEW VALUE PROPOSITION. Re-imagine: Up, Up,
Up, Up Value-added Ladder. the barns burnt down now I can see the
moon Mashahide/Zen poet 9. Re-imagine Organizing IV: The White-Collar Tsunami and the Professional Service Firm (PSF) Imperative. E.g.
Jeff Immelt: 75% of admin, back room, finance digitalized in 3 years. Source: BW (01.28.02)
Product Design Outsourcing Set For Big Rise Headline/FT/06.05 Teenagers in India have big ambitions and the confidence to match headline/Fortune/07.05
Must It Be Mfg?* Africa: Tanzania/A $523 Niger/M $741 Kenya/S $1022 Central America: Nicaragua/M $2366 Salvador/S $4497 EEurope: Ukraine/A $3816 Macedonia/M $5086 Poland/S $9051 SEAsia: Indonesia/A $3043
Brunei/M $16779* (*lotsa oil, no people) Malaysia/S $9068 Source: The Penguin State of the World Atlas/7th Ed/2003 Hospital Services Performed Overseas headline, Washington Post/04.24.05 When patients needed urgent CT scans, MRIs and ultrasounds late at night at St. Marys
Hospital in Waterbury CT, emergency room workers used to rouse a bleary-eyed staff radiologist from his bed to read the images. Not anymore. The work now goes to Arjun Kalyanpur8,000 miles away in Bangalore CompleteCase.com ($249 vs $3,000) USLegalForms.com TurboTax.com YourDiagnosis.com
HouseValues.com HomeGain.com House.com ServiceMagic.com LendingTree.com har.com ZipRealty.com homedepot.com forsalebyowner.com homestore.com HomeLoanCenter.com owners.com CompleteHome.com Reply.com* *70% start search on Web (vs 49% newspaper) (1.9 weeks with Realtor vs 7.1); 35% of leads from Web (25-35% of fee);
commission, 6%-4.5% ($60B) I got my mortgage through Costco * ** *** Consumer Goods Exec/06.05 *via Lending Tree **$200 Costco Card (came as $300) ***Next up: Health Insurance (CA pilot)
Software is a forklift for the left brain. Dan Pink Sarah: Mom:
Mom, what do you do? Im overhead. Sarah: Mom: Mom, what do
you do? I manage a cost center. Sarah: Papa: Papa, what do you do?
Im overhead. Sarah: Daddy, what do you do? Im a bureaucrat.
Papa: Sarah: Papa: Papa, what do you do? I manage a cost
center. Job One: Getting (WAY) beyond the Cost center, Overhead mentality! Answer: PSF! [Professional Service Firm]
Department Head to Managing Partner, HR [IS, etc.] Inc. Typically in a mortgage company or financial services company, risk management is an overhead, not a
revenue center. Weve become more We pay for ourselves, and we actually make money for the company. Frank than that. Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
Mantra: Eichorn it! Big Idea: Corporation as Mega-PSF (Professional
Service Firm*) * Virtual Collection of Entrepreneurially-minded Professionals (Talent/Roster) Creating/Applying Intellectual Capital (Work Product) Big Idea/Meta-Idea/Premier Engine of Value Added (1) The Talent: Best Roster of Entrepreneurial-minded Brand Yous. (2) The (Virtual) Organization: Internal or
External PSF/Professional Service Firm working with Best Anywhere = Engine of Value Added through the Application of Creative Intellectual Capital (3) The Work Product: Game Changer WOW Projects DD$21M 9A. The PSF35:
Thirty-Five Professional Service Firm Marks of Excellence Disintermediation is overrated. Those who fear disintermediation should in fact be afraid of irrelevancedisintermediation is just another way of saying that youve become irrelevant to your
customers. John Battelle/Point/ Advertising Age/07.05 Think BIG Think DIFFERENT Think COOL Appropriate benchmark: earn a place in the history books be able to say to your grandson/daughter, I was project manager of the
Big Dig TP/Bentley magazine The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (Every Practice Group: If you cant explain your position in eight words or less, you dont have a positionSeth Godin) 2. DRAMATIC DIFFERENCE (We are the only ones who do what
we doJerry Garcia) 3. Stretch Is Routine (Never bite off less than you can chewanon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling Best TeamFast) 5. Playful Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small Uneconomic Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: Dent the UniverseSteve Jobs)
9. Fire-on-the-spot Anyone Who Says, Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a commodity 10. Consistent with #9 above DO NOT SHY AWAY FROM THE WORD (IDEA) RADICAL Best is not good enough! ?????
Do good (excellent?!) work Make a lot of money Point of View! R.POV8* *Remarkable Point Of View/8 Words or less/If you cant state your position in eight words or less you dont have a position.--SG
If you cant state your eight words or less, position in you dont have a position. Seth Godin
If you cant write your movie idea on back of a business card, the you aint got a movie.
Samuel Goldwyn I make all the launch teams tell me what the magazines five words or less. You cant run about in
alongside millions of consumers and explain what you mean. It forces some discipline on you. Ann Moore, CEO, Time Inc., on new mags Gaspworthy! P4300. Will you remember it 10/20
years from now? Will you show it off your kids/grandkids? Every project we undertake starts with the How can we do what has never been done
before? same question: Stuart Hornery, Lend Lease Koolhaas is drawn to any concept that has never been tried before. The New Yorker/03.14.05
Lockstep is easiest, but theres a reason you cannot succumb to it. Because nothing great or even good ever came of it. Sometimes I meet young writers, and I like to share with them the overwhelming feeling I have about our work. Once youve read Anna Karenina [etc.], you understand that there is really no reason to ever write another novel. Except that each writer brings to the table, if she will let herself, something that no one else in the history of time ever has. That is her own personality, her own voice. If she is doing Fitzgerald imitations, she can stay
home. If she is giving readers what she thinks they want instead of what she is, she should stop trying. But if her books reflect her character, the authentic shape of her life and her mind, then she may well be giving readers a new and wonderful gift. Giving it to herself, to. Anna Quindlen, Being Perfect Gasp-worthy! As an alumnus, I received an email from McKinsey about its response to the SEAsian tragedy. I read
it, nodded, and cast it aside. (But did not delete for some unknown reason.) I returned to it a few hours laterand was moved to send McKinseys managing partner an email. I said that the response was perfectly adequate, but I added that business has a tawdry rep these days and that McKinsey is the premier Counselors to Top Management so, I chided, I saw it as a missed opportunity that McKinseys response
failed to make me gasp by its audacity. Question #1 HOW WILL THIS PROJECT ENHANCE THE CUSTOMER EXPERIENCE IN A WAY THAT DRAMATIC DIFFERENCES FROM OUR
WILL IMPLEMENT COMPETITORS SO THAT WE CAN CAPTURE NEW CUSTOMERS, RETAIN OLD CUSTOMERS & GROW THEIR BUSINESS, BUILD OUR BRAND INTO A LOVEMARK AND KICK-START THE TOP LINE ?
Every Project Surprises Inkling of Revolution Ladle Droppers Discomfort/Fear Nobodys Done That The PSF35: The Client Experience 11. Always team with client: full partners in achieving memorable results (Wanted: Chimeras
of Moonstruck Minds!) 12. We will seek assistance Anywhere to assemble the Best-inPlanet Team for the Project 13. Client Team Members routinely declare that working with us was the Peak Experience of my Career 14. The jobs not done until implementation is 100.00% complete (Those who dont get it must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED CULTURE CHANGE 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT
(Teach a man to fish ) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? The PSF35: The People & The Leadership 18. TALENT FANATICS (Best-Coolest place to work) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond same old, same old) 20. Early Opportunities (vs. Wait your turn) 21. Up or Out (Based on Legacy/Mentoring as much as
Billings/Rainmaking) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #R [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills 25. A PROPRIETARY TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed
and to Infuse Different Views The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (My life is my messageGandhi) 29. Excellence+ in EXECUTION 100.00% of the Time (No such thing as a small sins/World Series Ring to the Batboy!) 30. Drop everything/Swarm to Support a Harried-On The Verge Team
31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEIL 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. Web (Technology) Obsession 34. BRAND/LOVEMARK MANIACS (Organize Around a Point of View Worth BROADCASTING: You must be the change you wish to see in the worldGandhi) 35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as much a place at the Head Table in a PSF as in a widgets factory: You cant behave in a calm, rational
manner. Youve got to be out there on the lunatic fringeJack Welch) Static/Imitative Integrity. Quality. Excellence. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction.
Smooth Evolution. Market Share. Dynamic/Different Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise!
Delight! Breathtaking! Punctuated Equilibrium! Market Creation! This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one the being a Force of Nature instead of a feverish, selfish little
clod of ailments and grievances complaining that the world will not devote itself to making you happy. GB Shaw/ Man and Superman (from Mike Ray, The Highest Goal) This is an important speech! Why? You are important people! And why the hell do I have to persuade you of that? Get the %$^&&* chip off
DARE TO BE INSANELY GREAT. Act like the stalwart your shoulders! Stand tall! heroes you truly are! Damn it! to CIOs, HR directors/11.04
TP Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has. Margaret Mead
Nobody can prevent you from choosing to be exceptional. Mark Sanborn, The Fred Factor To live is the rarest thing in the world. Most people exist, That is all.
Oscar Wilde Make your life itself a creative work of art. Mike Ray, The Highest Goal Coolest PSF Fully deckedout Big Rig!* *PSF/WOW Project/Brand You/Dramatic Difference
Case: Real Estate2004 HouseValues.com HomeGain.com House.com ServiceMagic.com LendingTree.com har.com ZipRealty.com homedepot.com forsalebyowner.com homestore.com
HomeLoanCenter.com owners.com CompleteHome.com Reply.com* *70% start search on Web (vs 49% newspaper) (1.9 weeks with Realtor vs 7.1); 35% of leads from Web (25-35% of fee); commission, 6%-4.5% ($60B) Real Estate Joins Club Crushing Competition! Big Time! Upon being questioned by a member of the audience concerning slipping commissions, I drew a rueful laugh when I snippily retorted, Get over it. I added, Be thankful for how long your Monopoly lasted, and when you
do hold your Weeping Party, dont invite Stockbrokerstheir fee structure means they can hardly afford Cab Fare to your whinging party, so the sympathy will doubtless be in short supply. Truth is, I had a ball during my 91st and Last seminar of 3004to the Very Progressive Houston Association of Realtors. Texans are fun to be around to begin with, and I as usual got a great kick out of dealing with yet another Profession coming Under Direct Siege. After years of an almost guaranteed 6% commission The Web Has Arrived. I spent hours patrolling the likes of LendingTree.com, ZipRealty.com, ServiceMagic.com, HomeLoanCenter.com, HouseValues.com, forsalebyowner.com and
homedepot.com. The array of online services, advisory to turnkey, is staggering and growing daily-exponentially. (And attracting aggressive players like Barry Diller and Cendant.) Source: Blog entry at tompeters.com/12.17.04 Real Estate Joins Club Crushing Competition! Big Time! Some 70% of prospective RE residential purchasers now start their search for home & agent on the Web; those who so utilize the Web spend on average 1.9 weeks with a live Realtor, vs 7.1 weeks for the non-Webbies. Realtors pay 25% or soa Big Dealof their fee for on-line generated leads
from 3rd-party providers, and commissions in general are more like 4.5% than 6% these days and headed for the Rio Grande. Talk about trauma-for-traditionalists! (The industry, including Houston, sports a, shall we say, sizeable share of Gray Hairs.) The Houston Association of Realtors, typically considered best-in-breed nationally, has its own brilliant & aggressive & high-investment Web site, HAR.com. Unlike many of its sister associations, HAR is urging members to progressively live with and take advantage of the changes; other associations are following the futile genie-back-in-the-bottle approach, and frequently using their formidable local political clout to shut down
public-listing sites in their locales. Talk about baying at the moon! Eventually, the courts will stop the silliness, but not before the Luddites lose another few years playing defense. Real Estate Joins Club Crushing Competition! Big Time! My Tom-message was fourfold: (1) The Web is here to stay/You aint seen nothin yet. (2) Make the Web and the New Services your allies & partners, make them work for you, not vice versa. (3) The old commission structure is DOAget on with life. (4) Respond to competition by Leaping Up the Value-added Chain and offering
Irresistible Experiences of the Cirque du Soleil variety. As some of you know, I just returned from England where I participated with Saatchis Kevin Roberts in a Microsoft Webinar on KRs powerful-profound Lovemarks idea. I hawked it like crazy yesterday, as I did with Lawyers a few weeks ago. I demanded (Can a consultant demand anything?) that my Newfound Houston Realtor Pals begin 2005 by responding to my 2 questions: (1)WHATS THE DREAM THAT YOU OFFER? (2) How do you become a LOVEMARK?
Real Estate Joins Club Crushing Competition! Big Time! I insisted I was not talking at my Clients, but with them. Hey, I, too, am caught in exactly the same pincer movement: (1) On the high end, the guru market supply-side is outpacing the demand-side. (A recent Variety story claimed there are 150 speakers priced at or above $40,000 a popup from 1 when I effectively invented the guru industry 20 or so years ago.) (2) On the other/lower end of the-my market-spectrum, eLearning is eclipsing classroom training at an extraordinary rate. All fine with me! I well know that I must work night
& dayincluding this Bloggingon my Lovemark! Real Estate Joins Club Crushing Competition! Big Time! Welcome to 2005, Realtors. (And Lawyers.) (And management gurus.) (And just about everybody, including the hundreds of thousands in the Ive Been Outsourced2005 Ranks.) Come in, Houston! Message:
Think/Obsess Offense. Become a Lovemark! 100 WAYS TO SUCCEED #35: Lovemark or Bust! (1) Enjoy your the Holiday Season! (2) Between now and 1JAN2005, invent 10 actions, solo or with pals, to Launch Your Lovemark Journey2005. (3) Focus directlyArchitect or Lawyer or Realtoron the following KRWs/Kevin Roberts Words: Mystery Magic Sensuality Enchantment Intimacy Exploration.
(3A) The words in #3 above Do Apply to You! (4) Develop a No Bull Action Schedule that includes 2 Hard First Steps by 10JAN05, 5 Hard First Steps by 01FEB05. (5) Report back to this Website, tompeters.com. Pronunciamento: I HEREBY DESIGNATE, IN ACCORDANCE WITH THE POWERS GRANTED TO ME (the Inalienable Right To Blog) THAT 2005 IS PROCLAIMED AS THE YEAR OF THE PROFESSIONAL SERVICE LOVEMARK. Welcome aboard! Source: TPBlog/12.17.2004
9B. The WOW! Project. the delight of being totally within ones own elementof identifying fully with ones work and seeing it as an expression of ones character this affection must be so strong that it
persists during leisure hours and even makes its way into dreams the mind knows no deadlines or constraints and is open to its inner energies Robert Grudin/ The Grace of Great Things: Creativity and Innovation If you are not prepared to be fired over your beliefs you are
working on the wrong project - TP Think BIG Think DIFFERENT Think COOL Appropriate benchmark: earn a place in the history books be able to say to your grandson/daughter, I was project manager of the
Big Dig TP/Bentley magazine [Other] admirals more frightened of losing than anxious to win SP: But can you turn a defensive player into an offensive player? Yes!
TP: Work with him/her to re-frame their principal project to the point that the ego is engaged and it becomes a life compulsion. * * If you and I had $150K in the bank and on the line and the 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
Beauty! WOW! Raving Fans! Impact! Astonish me! / S.D. Build something great! / H.Y. Immortal! / D.O.
Insanely Great Reward excellent failures. Punish mediocre successes.
Phil Daniels, Sydney exec WOW! Projects: Nuts & Bolts (a few) You = Your Project Portfolio Be-Do
choice* *John Boyd Here is the Story/Saga of my latest project: _____________________________ _____________________________ _____________________________ _____________________
Playmate! Playpen! Prototype mania!* *Ready. Fire! Aim./Small Win (GW @ Trenton) Collect Testimonials!/ Build BUZZ!
Where to look for Playmates: Small Division, Mid-size Customer, Cool Vendor, Cool Department (if you are internal staff) Where NOT to look for Playmates: BIG
Division, BIG Customer, BIG Vendor, UP Make your own McKinsey Customer-driven
Rocks! JKC The Project 50 Create Sell Implement Exit Traditional Emphasis
10% 0% 90% 0% Our View
30% 30% 30% 10% The Project 50 CREATE
1. REFRAME: NEVER ... EVER! ... ACCEPT A PROJECT/ASSIGNMENT AS GIVEN! 2. TRANSLATE YOUR DAILY EXPERIENCES INTO COOL STUFF TO DO. 2A. Become a Benchmarking Fanatic: LOOK at every-small-thing-that-happens-toyou as a Golden Learning Opportunity. 3. Improve your vocabulary! Learn to love WOW! Use the word. WOW! 4. There are no small projects: IN EVERY LITTLE FORM OR PROCEDURE, IN EVERY LITTLE PROBLEM THERE USUALLY LURKS A B-I-G PROJECT! 4A. CONVERT today's annoying chore into a WOW! Project. THE B-I-G IDEA: THERE'S NO SUCH THING AS A GIVEN. 5. Put on the brakes! DONT BETRAY WOW! 6. LOVE MAKES THE WORLD GO ROUND!
7. Will itthe project, our babybe beautiful? Yes ... BEAUTIFUL! 8. Design-Is-It. I.e.: One of the single most powerful forces in the whole bloody universe. 9. IS THE PROJECT REVOLUTIONARY? (ARE YOU SURE?) The Project 50 10. Is the Web factored into the project? In a b-i-g way? 11. Impact. Henry James asked this, as his ultimate question, of an artist's work: Was it worth doing? 11A. Made Anybody(s) Angry Lately?
12. RAVING FANS! 12A. Women-as-Raving Fans. Women take to products/servicesand, thence, project deliverablesfor (very) different reasons than men. 13. Pirates-on-the-high-seas. We are on a Mission/Crusade. We plan to upset the applecart (convention wisdom) Big Time ... and Make a Damn Difference. 14. If you can (hint: you can!), create a place. That Is ... Pirates Need Ships at Sea and Caves on Land. (Safe Houses in Spy-speak.) 15. Put it in your resume. NOW! PICTURE YOURSELF CROSSING THE FINISH LINE. 16. THINK RAINBOW!
17. THINK ... OR RETHINK ... OR REFRAME ... YOUR CONCEPT ... INTO A BUSINESS PLAN. 18. Think/obsess ... D-E-A-D-L-I-N-E. Be ridiculously/absurdly/insanely demanding of yourself/your little band of renegades. The Project 50 19. Find a Wise Friend. WOW Projects Aint Easy! They Stretch You, Stress You, and Often Vex You. And the Organization. 20. FINDAND THEN NURTUREA FEW (VERY FEW) CO-CONSPIRATORS. 20A. Find at least one user/co-conspirator. NOW. Think user from the start.
21. Consider carrying around a little card that reads: WOW! BEAUTIFUL! REVOLUTIONARY! IMPACT! RAVING FANS! SELL 22. Be S-U-C-C-I-N-C-T. Describe your project (its benefits and its WOW!) in T-HR-E-E minutes. 22A. METAPHOR TIME! The pitchand every aspect of the projectworks best if there is a compelling theme/image/hook that makes the whole thing
cohere, resonate, and vibrate with life. 23. SALES MEANS SELLING ... EVERYONE! 24. Hey: WOW Project Life = Sales. Right? So ... WORK CONSCIOUSLY ON BUZZ. GET VISIBLE AND STAY VISIBLE. 25. Do your Community Work. Start to Expand the Network! ASAP. The Project 50 26. 27. 28.
29. 30. Last is as good as first. If they support you ... they are your friends. Preach to the choir! Never forget your friends! Don't try to convert your enemies. Dont waste time on them. CREATE AN A-TEAM ADVISORY BOARD. Become a Master Bootstrapper. You heard it here first: Too much initial money ... kills! 31. Think B-E-T-A! As in ... Beta Site(s). You need customer-partners ... as safehaven testing grounds for rough prototypes.
IMPLEMENT 32. CHUNK! CHUNK! CHUNK! Weve gotta break itour project, now on the movedown into tidbit/do-it-today/do-it-in-the-next-four-hours pieces. 33. Live ... Eat ... Sleep ... Breathe: Prototype! I.e.: BECOME AN UNABASHED PROTOTYPING FANATIC. 33A. Teach prototyping. Prototyping is a corporate culture issue. I.e.: Work to create a Culture of Prototyping. 34. PLAY! FIND PLAYMATES! 35. Scrunch the Feedback Loops! 36. BLOW IT UP! PLAY ... AND DESTRUCTION ... ARE HANDMAIDENS.
The Project 50 37. Keep recruiting! Iron Law: WOW Projects Call for WOW! People. Never stop recruiting! 37A. WANTED: COURT JESTER. 38. Make a B-I-G binder! This is the Project Bible. It's the Master Document ... the macro-map. 39. List mania. Ye shall make lists ... and the lists shall make ye omniscient. (No joke.) 40. Think (live/sleep/eat/breathe) Timeline/ Milestones.
40A. WANTED: MS. LAST TWO PERCENT! 41. Master the 15-Minute Meeting. You can change (or at least organize) the world in 15 minutes! 42. C-E-L-E-B-R-A-T-E! 42A. CELEBRATE FAILURES! 43. Station break! The keynote here is action. Exactly right! But: Don't allow the action fanaticism to steer you off course re WOW!/Beauty/Revolution/Impact!/ Raving Fans. 44. A Project Has an Identity. Its Alive. PROJECT = LIFE ... SPIRIT ... PERSONALITY.
The Project 50 45. Cast the Net a Little/Lot Farther Afield. 46. It's the U-S-E-R, stupid! Never lose sight of the user community. 47. Concoct a B.M.P./Buzz-Management Program. Marketing is Implementation. EXIT 48. SELL OUT! It's been us against them ... and one heck of a ride. But now the time has come to dance with the suits ... if we really want full impact. 48A. Recruit a Mr. Follow-up ... Who Is as Passionate as You Are! (And L-O-VE-S Administration.) 49. SEED YOUR FREAKS INTO THE MAINSTREAM ... WHERE THEY CAN
BECOME MUTANT VIRUSES FOR YOUR (QUIRKY) POINT OF VIEW! 50. Write up the project history. Throw a Grand Celebratory Bash! Steve! Three Cheers for the Arts! Jobs drops out, goes to Reed and the world is changed by his calligraphy course!
You have to trust that the dots will somehow connect in your future. This approach has never let me down. SJ Source: commencement address/Stanford/06.2005 It turned out that getting fired by Apple was the best thing that could ever have happened to me. The heaviness of being
successful was replaced by the lightness of being a beginner, lees sure about everything. It freed me to enter one of the most creative periods of my life. Steve Jobs/commencement address/Stanford/06.2005 Sometimes life hits you in the head with a brick. Im convinced that the only
thing that kept me going was that I loved what I did. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. Dont settle [for less]. As with all matters of the heart, youll know when you find it. Steve Jobs/ commencement address/Stanford/06.2005
Your time is limited, so dont waste it living someone elses life. Dont be trapped by dogmawhich is living with the results of other peoples thinking. Dont let the noise of others opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They some how already know what you truly
want. Everything else is secondary. Steve Jobs/commencement address/Stanford/06.2005 On the back cover of the final issue [of The Whole Earth Catalog] was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it were the words: Stay Hungry. Stay foolish.. It
was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate, I wish that for you. Steve Jobs/commencement address/Stanford/06.2005 Stay Hungry. Stay Foolish. Steve Jobs
9C. Start a WOW Projects Epidemic! Emphasize Demos, Heroes, Stories! Ordering Systemic Change is a Waste of Time! Premise:
Demos! Heroes! Stories! Demo = Story A key perhaps the key to leadership is the
effective communication of a story. Howard Gardner, Leading Minds: An Anatomy of Leadership Some people look for things that went wrong and try to fix them. I look for things that went right, and try to build off them.
Bob Stone (Mr ReGo) Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.
Richard Tanner Pascale & Jerry Sternin, Your Companys Secret Change Agents, HBR 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. Build a School on top of a school (The Parallel Universe Strategy) B.School Innovation Strategies: Exec Ed/ Continuing Ed (fewer restraints). Web (fewer restraints). Parallel Universe approach (JKC/Bob S)! Recruit
weird (in places you can get away with iteg, students, continuing ed faculty lesser admin jobs)! Message: LOOK FOR/EXPLOIT THE WEAK (Unregulated) SPOTS! Change? Ha! Try: End Run! Build Your Own! Period!
Were never going to persuade the conservatives to accept [our view]. We need to build our own institutions. anon. My mission is that of a molemy existence only to
be known by upheavals. Jan Morris, Fishers Face, Or, Getting to Know the Admiral Never doubt that a small group of committed people can change the world. Indeed it is the only thing that
ever has. Margaret Mead 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
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
9D. PSF = Everything: The PSF Ladder to the Stars PSF = Everything: The PSF Ladder to the Stars! Apex II: Dreamketing/DreamMerchants Apex I: DisruptionDervishes
Product II: PSF w/R.POV8* ( (*Remarkable Point Of View in 8 Words or Less) Product I: PSF = BY + WOW! Projects Base II: DNA = WOW! Projects Base I: Talent = Brand Yous on Quests BEDROCK: LOVEMARK LEADERSHIP
Big Idea: Corporation as Mega-PSF (Professional Service Firm*) * Virtual Collection of Entrepreneurially-minded Professionals (Talent/Roster) Creating/Applying Intellectual Capital (Work Product) Big Idea/Meta-Idea/Premier Engine of Value Added
(1) The Talent: Best Roster of Entrepreneurial-minded Brand Yous. (2) The (Virtual) Organization: Internal or External PSF/Professional Service Firm working with Best Anywhere = Engine of Value Added through the Application of Creative Intellectual Capital (3) The Work Product: Game Changer WOW Projects
10. Re-imagine Businesss Fundamental Value Proposition: PSFs Unbound Fighting Inevitable Commoditization via The Solutions Imperative. Must It Be Mfg?*
Africa: Tanzania/A $523 Niger/M $741 Kenya/S $1022 Central America: Nicaragua/M $2366 Salvador/S $4497 EEurope: Ukraine/A $3816 Macedonia/M $5086 Poland/S $9051 SEAsia: Indonesia/A $3043 Brunei/M $16779* (*lotsa oil, no people)
Malaysia/S $9068 Source: The Penguin State of the World Atlas/7th Ed/2003 While everything may it is also increasingly the same. be better,
Paul Goldberger on retail, The Sameness of Things, The New York Times When Flawless Isnt Enough: Americas Big Three now make reliable cars, but they have a long way to go on the Wow factor
Headline/BusinessWeek/12.08.03 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
Self-storage ($17B) > Movies Source: Dan Pink Companies have defined so much best practice that they are now more or less identical.
Jesper Kunde, Unique Now ... or Never Theres nothing worse than being ordinary Mena Suvari/ American Beauty
To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation. W. Chan Kim & Ren Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/08.11.03 Variety : 150
speakers @ $40K+ (11.04) And the M Stands for ? Systems Integrator of choice.
Gerstners IBM: (BW) IBM Global Services: $55B [Closing/selling Boeings 8,000person facility in Wichita] was an important decision in moving
forward with Boeings longterm strategy of becoming a large-scale integrator. The Wichita Eagle/06.16.2005 Never mind computers and tech services. IBMs radical
new focus is on revamping customers operations and running them. Headline/ BW/ 04.18.05 Lenovo is buying the one thing from IBM that cannot be commoditized, that China cant produce more cheaply and more
efficiently: superior management. Wired/07.05 Planetary Rainmaker-in-Chief [Sam] Palmisanos strategy is to expand techs borders by pushing usersand entire industries toward 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 By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. However, creating a new business innovation is not enough for rules to be changed. The innovation must
impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how
value will be created in the future. Narayana Murthy, chairmans letter, Infosys Annual Report 2003 +49%/profits +52%/revenue Source: WSJ/10.13.2004/Infosys 2nd-Period Profit Rose Amid Demand for Outsourcing Big Browns New Bag: UPS Aims to Be
the Traffic Manager for Corporate America Headline/BW/07.19.2004 SCS/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank
Source: Fast Company/02.04 Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the Are customers bottom lines really benefiting from what
we provide them? customers profitability. Bob Nardelli, GE Power Systems Bear In Mind: Customer Satisfaction
versus Customer Success Beyond the Transaction Mentality Good hotel/ Happy guest vs.
Great Vacation/ Great Conference/ Operation Personal Renewal Good to Be Home Beyond the Transaction Mentality Give a Good Speech
vs. Honor the Gift of an hour by Attempting to Change Lives 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 Health Insurance
Now Available At Your Local Costco Headline, IBD/06.05 New York-Presbyterian: 7-year, $500M enterprisesystems consulting and equipment contract with GE Medical Systems Source: NYT/07.18.2004
Instant Infrastructure: GE Becomes a General Store for Developing Countries headline/ NYT/07.16.05 E.g. UTC/Otis + Carrier:
boxes to integrated building systems Units of Coolth Leased AC: John Deere Landscapes:
This is our future. 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 (3,500 design engineers) things but adding value Source: Asia Inc./02.2004 Can this kitchen be
saved? As big chains add in-house designers Wall Street Journal/04.29.05/Headline Comin On: Huawei Ranked 8th among telecoms suppliers (up from 18 a year ago; Cisco #1)
4 th Ranked on service and support (Surveyor: astounding) Recently beat Ericsson and Motorola for a 3G Thai job
Source: The Economist/03.05.05 Architecture is becoming a commodity. Winners will be Turnkey Facilities Management providers. SMPS Exec
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) Thaksinomics (after Thaksin 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 My advice is when you think strategy think about de-commoditizing. Try desperately to make products and services distinctive, and customers stick to you like glue. Think about innovation, technology, internal processes, service add-ons whatever works to be unique. Doing that
right means you can even mke a few mistakes and still succeed. Jack Welch/Fortune/04.05 [Sony] faces turmoil as it makes the transition from hardware to software, from products to services.
Tim Clark & Carl Kay, It Will Take More Than a Foreign CEO to Save Sony, NYT (03.09.05) IV. NEW BUSINESS. NEW GAME. 11. Re-imagine Enterprise as Theater I: A World
of Scintillating Experiences. Re-imagine Enterprise as Theater: The Cirque du Soleil Aspiration! (Nothing Less!)
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 Its the place our customers come for refuge. or home. Nancy Orsolini, District Manager
Experience: Rebel Lifestyle! What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. Harley exec, quoted in Results-Based Leadership 2/50
3Q04 WHAT CAN BROWN DO FOR YOU? The Experience Ladder Experiences Services
Goods Raw Materials Whole Foods Market Apple Store Commerce Bank Americans love to shop. And Americans love to shop. But we dont like to shop for food.
Whole Foods thinks shopping should be fun. With this [Austin concept] store we are pioneering a new lifestyle that synthesizes lifestyle and pleasure. John Mackey/USA Today/03.09.05 Pleasure is woven into every crevice of the new [80K sf] flagship store.USA Today (03.09.05). Theyre not selling food, theyre selling life.Phil Lempert,
supermarket guru. Whole Foods offers a psychological absolution of our excesses.Jerald Jellison, psych prof/USC. I moved to Austin for Whole Foods.Lynn Larson, Pittsburgh refugee E.g.: Massage; walk-in beer cooler with 800 brands; Lamar Street Greens: sit amidst the greens and be served a handmade salad of organic greens with a glass of Chardonnay Sales per Square Foot/Grocery
Albertsons: $384 Wal*Mart: $415 Whole Foods: $798 Service (EXPERIENCE!) Excellence Found! Three TP Awards: Susan & I shopped Saturday at Whole Foods Market/Boston. WOW! Food AWESOME. Presentation AWESOME. Staff Attitude & Knowledge AWESOME. Last Impression (help with bags in an urban setting) AWESOME. Talk about Experience Marketing Dream
Merchants Lovemark! These guys top Starbucks by a mile in my book! Next up: Apple Store CambridgeSide. What a show! The product, of course, is AWESOME. The ambience is AWESOME. The Staff Attentiveness & EXPERTISE & Teaching Skill is AWESOME. And on the Experience Front, Apple runs a blizzard of Cool Activities. (Last Saturday, for instance: 9-10am, Getting Started Workshop; 1-130pm, iLife 04 Presentation; 3-330pm, iPod & iTunes Presentation; 5-530pm, GarageBand Presentation. On weekday evenings there are often advanced presentations.) Finally, another nod to Commerce Bank; my colleague Ilene Fisher hung out at a Commerce call center last week it aint your fathers call center! Staffers are
not measured on length of callstheyre encouraged to spend all the time they need with Clients. There are no voice messages or menusall Clients are directly handled by Human Beings all-the-time and yet the response time is an average of 16 seconds, half that of the industry. All this lavish service, and they manage to grow almost 50% a year organically! (Oh yes, and their use of WOW! makes me look like a little leaguer!) Cirque du Soleil *$500M-$600M revenue *#22 Interbrand/brand impact (>Microsoft, Disney, VW,
McDonalds) *Every time we come to a comfort zone, we will find a way out (Daniel Lamarre/President) *No Cloning! *Reinvent the brand with EACH new show (max 1/year) *70% of profits into R&D! *A typical day at the office for me begins by asking, What is impossible that I am going to do today? (Daniel Lamarre) *No deal until creative challenge (no matter $$ on the table) *Diverse creative teams! (Dont come out until youve done
something great.) *Recruit the near-great (not prima donnas) (crazy interviews) Source: Fast Company/07.05 The Experience Ladder/TP Experiences Solutions/Success Services Goods
Raw Materials 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 Franchise Lost TP: How many of you  really crave a new
Chevy? NYC/IIR/061205 Lexus sells its cars as containers for our sound systems. Its marvelous. Sidney Harman/ Harman International
Now Youve Heard It All We want our branches to be a place where people come as a destination. Amy Brady, on
the BofA effort to learn from Starbucks and Gap (The Fun Factor/The Boston Globe/08.30.04 Q: Why did you buy Jordans Furniture? Its all showmanship. A: Jordans is spectacular.
Source: Warren Buffet interview/Boston Sunday Globe/12.05.2004 Tchibo A New Experience Every Week Source: Tom Kelley, The Ten Faces of Innovation
Hold the popcorn, pass the cocktails: With market slipping, cinemas try to create new experience headline, Boston Globe, 07.05 LAN Installation Co. to Geek Squad (2% to 30%/Minn.)
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
One companys answer: CXO* *Chief eXperience Officer Prep DRALION/ Cirque du
Soleil 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, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.] Last Impressions Come First! Nobel Laureate Daniel Kahneman (a psychologist who won the Economics Nobel) tells us, as reported in the February 2005 issue of Psychology Today, that our memories are very selective. In particular, no matter how extended an event (party, commercial transaction), we form our view and make our evaluation basedwith
dramatic skewon the most intense moments & the final moments. This is yet another Compelling Argument for EMOTIONAL EXPERIENCE MANAGEMENT! (For all of us! See immediately above.) The final moments evidence is particularly startling; e.g., one goes to a brilliant, 4-hour dinner party yet three months later we only remember that two guests exchanged heated remarks on the way out the door. #50: Flower Power Rules!
Law firm, hotel, IS department make Flower Power a Main Event & Incredible Distinction in your Pursuit of Lovemark status! Extraction & Goods: Male
dominance Services & Experiences: Female dominance KFC (et al.) When we did it right it was
still pretty ordinary. Barry Gibbons on Nightmare No. 1 This is not a mature category.
This is an undistinguished category. 17 visits*: KFC, 4; McD, 4; BK, 3; TB, 2; PH, 2; DD, 1; W, 1 *6 TP solo, 5 TP accompanied, 6 TP Staff (no airports) A
B C D E Avg
Toilets 0 1 6 5
5 D Genl Cleanliness 1 2
8 5 1 C- Speed
5 6 4 2 0
B Attitude 1 3 8
4 1 C Overall Experience 0
3 9 5 0 C-
TOTAL 7 15 35 21
7 Food A B C
D 0 1 12 4 E
0 Avg C/C- 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
They need to devote less money to advertising and more to operations (pay their workers more) so as to insure a Quality Experience. All great advertising does is frustrate their consumers. They say come experience this great place ... and customers experience something else and
they get mad AND WON'T COME BACK. (Anon.) Hotel X Hotel Excellence/ Mechanics
Cleanliness! Technology!/Office away from home Exercise equipment (#, quality, hours) Room service (hours, light choices, speed) Pressing/Laundry (Hours! Speed!) Air! Decor Sparkle! (vs Tired)
Hotel Excellence/ Culture/Attitude Recognition Politeness We care Sparkle! Responsiveness/Speed/Adequate #s 24/7
Hotel Excellence/ Surprises Mollies Eco-friendly ???? Hotel Excellence/
Culture/Attitude Recognition Politeness We care Sparkle! Responsiveness/Speed/Adequate #s 24/7
Hotel Excellence/ Overall Give a S___ Nice! Wow! Sparkle! Its good to be home!
Mollies Tom Ps Hotel10/05.05.05 1. Brand Distinction (dramatic difference or bust) must be Crystal Clear. 2. SPARE NO EXPENSE IN FINDING THE BEST
(AWESOME) PROPERTY MANAGER. 3. The individual propertys Point of View must be Clear to One & All. (Beyond the generic brand promise.) 4. Aim Strategically at WOMEN as Guests & Meeting Planners. 5. Aim directly at BOOMERS & GEEZERS. 6. #4 & #5 above call for cultural re-alignment, not mere strategic programs. 7. Never assume youre Okay on the basics. (YOU PROBABLY ARENT.)
8. MBWA (Managing By Wandering Around) is Alive & Well and applies to Owners! 9 Fortune says Wegmans (groceries!!!) is the # 1 Place to Work in America WHAT ABOUT/WHY NOT YOUR HOTEL/S? 10. AMAZE ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 12. 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 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 Experience Ladder/TP Dreams Come True Awesome Experiences Solutions Services
Goods Raw Materials Thaksinomics (after Thaksin 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 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 No longer are we only an insurance Today, we also offer our customers the products and services that help them achieve their
dreams whether its financial provider. security, buying a car, paying for home repairs, or even taking a dream vacation. Martin Feinstein, CEO, Farmers Group 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 First we make the world revolve around you. Then we gently slow it down. tag line, Ritz Carlton Spa
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
Six Market Profiles 1. Adventures for Sale/IBM-UPS-GE 2. The Market for Togetherness, Friendship and Love/IBM-UPS-GE 3. The Market for Care/IBM-UPS-GE 4. The Who-Am-I Market/IBM-UPS-GE 5. The Market for Peace of Mind/IBM-UPS-GE 6. The Market for Convictions/IBM-UPS-GE Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business IBM, UPS, GE Dream Merchants! PSFs (PSF33)
Dream Merchants! 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
We stand facing the fifth kind of society: the Dream Society. society whose icon is the computer. 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
Rogaine. Help Keep Your Hair. Help Keep Your Confidence. Source: Ad on the side of a bus/Dublin/10.04 Product: Solution: Rogaine.
Help Keep Your Hair. Help Keep Your Confidence. Dream-come-true: Source: Ad on the side of a bus/Dublin/10.04 70s: Cost (BCGs cost curves)
80s: TQM-CI (Japan) 90s: Service 00s: Solutions/Experiences 10s: Dream Fulfillment 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 Clients want either the best or the least expensive; there is no in
between. from John Di Julius, The mass market is dead. Consumers look for either price or quality. The middle is shrinking. Walter Robb/COO/Whole
Foods/Investors Business Daily/06.20.05 13. Re-imagine the Soul of New Value: Design Rules! Franchise Lost TP:
How many of you  really crave a new Chevy? NYC/IIR/061205 Finally? Lafleys Love Affair With Design Cover, FC, July 2005
GMs Design Push Picks Up Speed Headline, BW, July 2005 Selling the Sizzle: Can GMs Design Guru Bring Americans Back? Headline, NYT, July 2005 Designs place in the universe.
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 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 Design coda. Having spent a century or more focused on other goals solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energywe are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and
Whenever we have the chance, were adding sensory, emotional appeal to ordinary function. Virginia Postrel, The Substance of Style: How the things look and feel. Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness With its carefully conceived mix of colors and
textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonalds was to the Age of Convenience or Ford was to the Age of Mass Productionthe touchstone success story, the exemplar of all that is good and bad about the aesthetic imperative. Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear,
smell or taste, writes CEO Howard Schultz. Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness Marketing Magic* The Missing 95%: The Unconscious! *E.g. ZMET/Zaltman Metaphor Evaluation Technique
We are all Designers! Design Transforms even the [Biggest] Corporations! TARGET the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)
Westins Heavenly Bed Design2002 LISTERINEs PocketPaks
The lowliest household tool has become an object of color, texture, personality, whimsy, even elegance. Dozens, probably hundreds, of distinctively designed toilet-brush sets are availablefunctional, flamboyant, modern, mahogany. For about five bucks, you can buy Rubbermaids basic plastic bowl brush with caddy, which comes in seven different colors, to hide the bristles and keep the drips off the floor. For $8 you can take home a Michael Graves brush from Target, with a rounded blue handle and translucent white container. At $14 you can
have an OXO brush, sleek and modern in a hard, shiny white plastic holder that opens as smoothly as the bay door on a science-fiction spaceship. For $32, you can order Philippe Starcks Excalibur brush, whose hilt-like handle creates a lid when sheathed in its caddy. At $55 theres Stefano Giovannonis Merdolino brush for Alessi Cross the $100 barrier, and you can find all sorts Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness DESIGN IS INEVITABLE!
DESIGN IS THE DIFFERENCE! DESIGN RULES! DHL SAMSUNG DESIGN: THE KOREAN GIANT MAKES SOME OF THE COOLEST GADGETS ON EARTH. NOW ITS REINVENTING ITSELF
TO GET EVEN COOLER. Cover/BusinessWeek/11.29.2004 Samsung By Design * 5 IDEA in 2004 (Industrial Design Excellence Awards)/1st Asian company to win more than top European or American company * 1993/LA: Chmn Why are our products lost, while Sonys are out front? * Design
staff/470 (120 in last 12 months); design budget 20% to 30% p.a.; Design Centers in London, LA, SF, Tokyo * Designers often dictate to engineers, not vice versa Design. If you cant
win on cost, then youre left with cool. Anon. Hypothesis: Design is the principle
metaphor for the encompassing Valueadded Imperative! Design at Apple/ Starbucks/ BMW is a state of mind , not a program.
[cultureTP] Tom Kelley/IDEO The Art of Business: Make All Your Work a Work of Art, by Stan Davis and David McIntosh The authors persuasively argue that we are entering an economy which will valueinsist upon!-a new way of looking at value creation. They call it moving from an emphasis on
economic flow (input-output) to artistic flow. The altered nature of enterprise, the four elements of new business thinking: See yourself as an artist. See your work as a work of art. See your customers as an audience. See your competition as teachers. A Devine Space
Worthwhile Cover Story, July 2005, on the power of extraordinary workspaces Better By Design The Design49 Tom Peters/Auckland/30March2005
Better By Design: Toms Design49 1. There are only 2 rules. 2. Rule #1: You cant beat Wal*Mart on price or China on cost. 3. Rule #2: See Rule #1. 4. Econ Survival = Innovate and Sprint Up the Value-added Chain OR DIE! 5. DESIGN (WRIT LARGE) (DESIGN MINDFULNESS) IS THE SOUL/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE. 6. Design as Soul-Core Competence #1 is a cultural imperative, not a programmatic or process or
throw $$$ at it issue! 7. CDEs (Culturally Design-driven Enterprises) use DesignExperiences-Dream Merchantry-Lovemarks as the Lead Dog(s) in the Olympian Innovation-Strategy-Value Proposition Struggle. 8. Dream Merchant makes as much sense for IBM or GE or UPS as for Starbucks! Better By Design: Toms Design49 9. At CDEs, Design is the Heart of the Emotional Branding Process.
10. CDEs wholeheartedly embrace ideas such as mystery, surprise, sensuality. 11. CDEs love WOW! and B.H.A.G. and Insanely Great and Gasp-worthy and Passion and Love! (Axiom: Extreme language breeds extreme products and services.) 12. Staff at CDEs laugh and cry a lot! (Axiom: Calm enterprise = Crappy enterprise.) 13. CDEs love strange and weird. 14. CDEs scour the earth for strange and weird people. (CDEs know: FREAKS RULE!)
15. CDEs are extremists. (KR: Avoid moderation.) 16. CDEs know that EXCELLENCE IS NOT GOOD ENOUGH! (We must use non-linear measures!) Better By Design: Toms Design49 17. CDEs seek Discontinuities. (JG: We dont want to be the best of the best, we want to be the only ones who do what we do.) 18. CDEs are respectful of their customers, but not slaves to their customers! CDEs LEAD THEIR CUSTOMERS! (Axioms:
Listening to customers is over-rated! Focus groups suck!) 19. But: Lead customers are an entirely different matter! 20: Yet: CDEs turn customers into Raving Fans. (Think: Tattoo Brand!) 21. CDEs abide by Phil Daniels Credo: REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES. 22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she is the CEO).
23. Design Directors at large companies not worth $5,000,000 per year arent worth hiring! (DD$21M.) Better By Design: Toms Design49 24. Great Designers are 10,000X better than good designers. 25. At CDEs CFOs are never former CFOs! The CEO always doubles as the Chief Innovation Officer. 26. CDEs are Top-line Obsessed. 27. CDE execs know there is a chasm between excellent design and game-changer design.
28. Gasp-worthy design is a moving target! 29. No Broadway shows last forever. So too, great designers! (Hire them! Pay them! Cherish them! Nurture them! Fire them!) 30. Great design wrestles incessantly with the issue of cool and/versus usability.! 31. Designers get the stunning principles of Wabi Sabi. (Great designers side with Chris Alexander against the A.I.A.) 32. CDEs get the feminine side of life. Better By Design: Toms Design49
33. CDEs Know I: WOMEN BUY EVERYTHING! 34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. 35. CDEs understand that Were getting olderand vigorously embrace the Boomer-Geezer market. 36. CDEs understand: Boomers-Geezers have ALL THE MONEY are by and large healthy and have 20 or so years left! 37. CDEs wonder: Can 28-year-olds design experiences for 68year-olds? 38. CDEs seek the sweetest sweet spot: Woman-BoomerGreenie-Wellness.
39. Design-mindfulness is as apparent in the CDEs facilities as in its products-services! Better By Design: Toms Design49 40. Design mindfulness is as apparent in HR and Engineering and Logistics and IS/IT as in NPD. 41. CDEs will settle for nothing less then beautiful, gasp-worthy Business Processes/Infrastructure! 42. CDEs obsess on K.I.S.S. (Beware creeping featureitis!) (450/8.) 43. Design-mindfulness/aesthetic sensibility is a
requisite for Every Hireincluding waiters and waitresses in Fast Food outlets and Housekeepers in hotels. 44. Gasp-worthy Design is as essential to service companies as to manufacturers. 45. Gasp-worthy design can transform any commodity, including ag! Better By Design: Toms Design49 46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER.
47. Small is no disadvantage in an Age of Creativity! 48. There is no such thing as a National Design Advantage unless the current school system is Destroyed & Re-imaginedto emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness the suppression thereof typically begins at Age 4.) How sweet it is!
49. head is screwed on right.) (If your Q/Boston Globe (07.05): Who is your favorite architect? A/Phillippe Stark: I dont like any architects. Oh, no, no, no. Lorenzo Piano. Hes the best.
Hes the only one who makes architecture for real people. 13A. Re-imagine the Infrastructure of Enterprise: Design = Beautiful Systems. 450/8
Cast in Stone Construction Criteria Manual:450/380/8 K.I.S.S. 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.: #s K.I.S.S.: Gordon Bell (VAX 500/50.
daddy): Chas. Wang (CA): Behind schedule? Cut least productive 25%. K.I.S.S.: Plain English (etc.)
Lose the ACRONYMS: If it sounds confusing it is confusing! (S.T.I.N.G.E.R.) Metrics: K.I.S.S.
Really Important Stuff: Rogers Rule of Three! Bills Rule of Visibility! Duh!
Change the culture, change the reward metrics: new CEO of Freddie Mac, Dick Syron, shifts reward structure toward affordable housing Source: Fortune/01.24.2005 Don Kennedy/ Stanford: from quantity (raw #) to quality (top 3)
What Gets Measured/ Obsessed About Gets Done Roger Milliken Roger Enrico Bill Creech Richard Haass Jack Welch Donald Kennedy Freddie Mac/Fannie Mae
Incentives that work: Clear/ unequivocal. Huge consequences. Different from now. Stable (for a few years). Stand out (1 of 1). Giant aspirations (B.H.A.G.) Basis for deep dip promotion/s. WHAT GETS MEASURED GETS DONE: % students (MBA); %
students (Continuing Ed); % students (Ph.D.). % faculty; % tenured faculty. % Advisory Board. % senior administrators. % cases focusing on Women managers. Etc. The Project/ Accountability Rules! (Beware Matrix
Madness) Percys Rule: Two Strikes & Youre Fired Control: K.I.S.S. Lees Rule: Run
It off a Blackberry! Life: K.I.S.S. 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
have. Must hate. / Must design. Must undesign. Systems: Must Mgt. Team includes EVP (S.O.U.B.)
Executive Vice President, Stomping Out Unnecessary Bullshit Rem Koolhaas on his drive for Often my job is to undo things. clarity-simplicity:
Source: New Yorker/03.14.05 First Steps: Beauty Contest! 1. Select one form/document: invoice, airbill, 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
The Planning, Planning Systems, Intelligence & Measures50 Tom Peters/0628.2005/for Cognos The Planning, Planning Systems, Intelligence & Measures50 *K.I.S.S. (!!) (450/8.) (500/50GB.) (Lees Blackberry.) *Complexity accretes one day/person/item at a time! *There must be a Systems & Measures Undesigner. (Rem Koolhaas: Often my job is to
undo things.) *Focus!!!! *5 or fewer key indicators. (Enricos Rule of Three.) *Key indicators must be backed up by unmistakable impact on evals and compensation! (JW & 6-sigma) *Prune 50% of your measures TODAY. The Planning, Planning Systems, Intelligence & Measures50 *Measurement Architecture = (Real) Corporate
Strategy. (PERIOD.) *CIOs & CFOs & CROs will become Soulmates in effective organizations! *Can a fourth grader understand it (Paul Sherlock, JW)? *Overall systems architecture should be in the heads of no more than three people. (Fred Brooks jr./360.) *Nothing is easier than lying with statistics. (Measurement is not Reality.)
*Hard is Soft. Soft is Hard. (TP-RWjr.) (c.f. Enron.) The Planning, Planning Systems, Intelligence & Measures50 *Fanatically measure Customer Satisfaction regarding systems/measures! *If the Customer says its confusing its confusing. PERIOD. *Systems & Measures planning must be Bottom Up! (Buy-in Rules in systems world.)
*If, as a systems guy/gal, it turns you on BEWARE! (Jeffersons Rule. Lessons from Clio.) The Planning, Planning Systems, Intelligence & Measures50 *Systems & Measures should be/can be/ought to be Works of Art! *Great systems are about aesthetics! *Is it beautiful? *Is it graceful?
*Is it Surprising? *Use a great Graphic Designer on all systems development teams and a damn good Psychologist. (Steve world.) The Planning, Planning Systems, Intelligence & Measures50 *Systems design is not innocent: It is the Ultimate Power Game! *She/He who controls the primary measures Rules
the World! The Planning, Planning Systems, Intelligence & Measures50 *Budgets as weve known them are more than a wretched waste: They are Danger #1 in Turbulent Times! *Budgets are exercises in Negotiated Timidity. *Managing to budget is a/the Mortal Sin. *Plan, then burn the plan! (Koppers.)
*Continuous and rolling are superb ideas but beware so much plasticity that one forgets the starting point! Hard. Comparitive datas is a very good thing. The Planning, Planning Systems, Intelligence & Measures50 *Intelligence is always obvious after the fact. *B.I.: Remember HUMINT!! *Great BizIntelligence depends on Freaks &
Whackos, from Langely to the Board Room. (I.e., Be Incredibly Eclectic in terms of sources of Intelligence.) *All intelligence gathering is a Political Activity. (C.f. CIA, FBI.) *B.I. is about outliers. (?? If you can measure it, its not on the leading edge??) The Planning, Planning Systems, Intelligence & Measures50
*If a system/measure gives you a stupid answer, its probably a stupid system/measure. *Measures should routinely produce Surprises (if not, discard them). The Planning, Planning Systems, Intelligence & Measures50 *Intangibles rule! *Measure intangibles! (!!!!) *Be(very)ware the tangibles becoming Total Reality,
thence crowding out Real Reality. *Constantly review whats not being measured. (Ever tried to drive a car using only the dashboard?) *Models are incredibly Stupid (very rough approximations of reality): Make sure everyone understands that! *Business is Art! The Planning, Planning Systems, Intelligence & Measures50
*Perform systems & Measures post-mortems after major fiascos (Why didnt this stick out like a sore thumb?) *The half-life of Measures is 3 years. (Effective gaming begins in year #2, reaches a crescendo by year #4.) The Planning, Planning Systems, Intelligence & Measures50 *Planning systems should support execution!
(PERT/CPM.) *Uniformity of measurement/presentation across units is fantastic up to a point. *Let a thousand flowers bloom, let a hundred schools contend: Let a 100 flowers bloom, let a dozen schools contend. *Selection of measurements is one of the Most Creative Acts in the Enterprise! *Are there Freaks aplenty in the Systems & Measures & Intelligence activities?
7. Re-imagine the Fundamental Selling Proposition: It all adds up to (THE BRAND.) (THE STORY.) (THE DREAM.) The Love.
WHO ARE WE? Brand? Its all about Character! Yahoo is doing so many different things that it may have neglected to
figure out what it wants to be headline/Economist/08.05 Miller Lite didnt stand for anything; it was trying to be a me-too to Budweiser. Graham Mackay/ CEO/ SABMiller/08.05
WHATS OUR STORY? WHATS THE DREAM? Nothing Is Impossible To Be Revered As A Hothouse
For World-changing Creative Ideas That Transform Our Clients Brands, Businesses, and Reputations Source: Kevin Roberts/ Lovemarks /on Saatchi & Saatchi We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value
on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their
products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies WHO CARES? Do the housekeepers
& clerks buy it? [ARE YOU V-E-R-Y SURE?] EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT? You do not merely want to be
You want to be considered the only ones who do what you do. the best of the best. Jerry Garcia
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
GH: Get better vs Get different EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ? E.g. Singapore Dubai Ireland New Zealand
(Brand Kansas?) (Brand NAVAIR?) Brands have run out of juice. Theyre dead. Kevin Roberts/Saatchi & Saatchi
Brands Are Out of Juice 1. Brands are worn out from overuse. 2. Brands are no longer mysterious. 3. Brands cant understand the new consumer. 4. Brands struggle with good old-fashioned competition. 5. Brands have been captured by formula. 6. Brands have been smothered by creeping conservatism.
Source: Lovemarks: The Future Beyond Brands, Kevin Roberts Kevin Roberts: Lovemarks! When I first suggested that Love was the way to transform business, grown CEOs blushed and slid down behind annual accounts. But I
kept at them. I knew it was Love that was missing. I knew that Love was the only way to ante up the emotional temperature and create the new kinds of relationships brands needed. I knew that Love was the only way business could respond to the rapid shift in control to consumers. Kevin Roberts/Lovemarks Brand . Lovemark Recognized by consumers . Loved by People
Generic Personal Presents a narrative .. Creates a Love story The promise of quality A touch of Sensuality Symbolic .. Iconic Defined .. Infused Statement .. Story Defined attributes ... Wrapped in Mystery Values . Spirit Professional ... Passionately Creative Advertising agency .. Ideas company
Source: Kevin Roberts, Lovemarks When we were working through the essentials of a Lovemark, Mystery was
always at the top of the list. Lovemarks: The Future Beyond Brands, Kevin Roberts *Mystery *Magic *Sensuality *Enchantment *Intimacy *Exploration
Source: Kevin Roberts (e.g. Apple/iMac/ Yum.) Most businesses are obsessed with downplaying Mystery. They are determined to frame the world so it fits their own systems and processes. No wonder they find it tough to communicate with anyone, including their own people. They pump out specifications, details, diagrams. Define this benefit. Delineate that target. Write plans and strategies backed up with statistics. Its not going to work. Its not going to work in the airline business, the food business, the cleaning business, or
any other business. How can it? Every major industry player now has exactly the same data, the same research suppliers, the same techniques, the same processes, and, in many cases, the same people. As Pete Seeger wrote in his song, Theres a green one and a pink one and a blue one and a yellow one, and theyre all made out of ticky-tacky and they all look just the same. Lovemarks: The Future Beyond Brands, Kevin Roberts
Lovemarks are owned by the people who love them. Lovemarks: The Future Beyond Brands, Kevin Roberts Human beings are powered by
emotion, not by reason.KR The essential difference between emotion and reason is that emotion leads to action, while reason leads to conclusions.Donald Calne, neurologist Source: Lovemarks: The Future Beyond Brands, Kevin Roberts Top 10 Tattoo Brands* Harley . 18.9%
Disney .... 14.8 Coke . 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex . 5.6 Nike . 4.6 Adidas . 3.1 Absolut . 2.6 Nintendo . 1.5 *BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom Explanation for prior slide: The % of users who would tattoo the brand name on their body! Lovemark
Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials Shareholders very seldom love the brands they have invested in. And the last thing they want is an intimate relationship. They figure this could warp their
judgment. They want measurability, increasing returns (always) and no surprises (ever). Imagine a relationship with someone like that! No wonder so many brands lost the emotional thread that had led them to their extraordinary success and turned them instead into metric-munchers of the lowest kind. Watch for the sign: HEADS, NOT HEARTS, AT WORK HERE. Lovemarks: The Future Beyond Brands, Kevin Roberts
The Power Is the Story Tom Peters/10.15.04/ for Better By Design Story > Brand Market Power = Story Power =
Dream Power Things To Do 1. Ask everyone you work with for a story that reflects what makes your brand special to them. The more diverse the stories, the richer the brand. 2. How would you tell consumers how much you personally love your brand? If you think they wouldnt care, re-think how you are talking with them. 3. Ask three friendspeople not in the same business
for a story about your brand. If they havent got one, youve got work to do. 4. Make a list of stories about your competitors that you wish were about your brand. Get out there and capture them yourself. Source: Lovemarks: The Future Beyond Brands, Kevin Roberts Things To Do 1. Call three consumers every day. Chat about how they are
doing, respond to their thoughts and ideas. Follow up. Then follow up some more. 2. Spread your email address around. Sure youll get some spam, but being open to the world is worth as much spam as you can eat. 3. Reinvent your vocabulary. Ask your colleagues for the words and phrases you use all the time. Do they suggest Mystery? Sensuality? Intimacy? Or are they corporate? 4. Have you ever been invited to a customers Birthday Party? If not, make that invitation your missionor hold the party
at your place. Source: Lovemarks: The Future Beyond Brands, Kevin Roberts Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton Brands are not nouns but verbs.
protests. Source: Jean-Marie Dru Disruption Message
Is Not >> Is 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 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) 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 an iconic 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
New C-Levels C X O* *Chief eXperience Officer
F C O* *Chief Festivals Officer C
C O* *Chief Conversations Officer C S
O* *Chief Seduction Officer C L O*
*Chief LoveMark Officer C DM* *Chief Dream Merchant C
PI* *Chief Portal Impresario C W O*
*Chief WOW Officer C ST O* *Chief StoryTelling Officer
Not to mention Top Line, Anyone? Point (Advertising Age), to Phil Kotler: Who should the CMO [Chief Marketing Officer] report to? Kotler: Maybe a Chief Revenue
Officer the cost side has been squeezed, now companies have to focus on top-line growthor maybe a Customer Officer Chief R
C O* *Chief Revenue Officer V. NEW BUSINESS. NEW
MARKETS. 15. Re-imagine the Customer I: Trends Worth Trillion$$$ Women Roar. Re-imagine the Customer I: Trends Worth Trillion$$$
Women Roar. (Stop Being Such Damn Fools I.) ????????? 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% 1970-1998 Mens median income: +0.6% Womens median income: +
63% Source: Martha Barletta, Marketing to Women Business Purchasing Power Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women
Kodak Sharpens Digital Focus On Its Best Customers: Women Page 1 Headline/ WSJ/07/05 (women particularly attracted to simplicity and quality) 91% women: ADVERTISERS DONT
UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women) FemaleThink/ Popcorn & Marigold 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. 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 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 Editorial/Men: Tables, rankings.* Editorial/Women:
that cohere.* *Redwood (UK) Narratives Initiate Purchase Men: Study facts & features. Women: Ask lots of people for input.
Source: Martha Barletta, Marketing to Women Thanks, Marti Barletta! A World of Difference Build Sales and Share by Tapping into the Buying Power of Women
T r e n d S i g h t Martha Barletta Author, Marketing to Women President & CEO, The TrendSight Group Powered by Microsoft Office Live Meeting
November 18, 2004 The Perfect Answer Jill and Jack buy slacks in black 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 One good thing about being a man
is that men dont have to talk to each other. Peter Cocotas Woman gets married: puts on weight, increases drinking, depressed Man gets married: weight stabilizes, drinking reduced,
happy Source: Richard Scase Women dont buy They join them. brands. EVEolution
2.6 vs. 21 Purchasing Patterns Women: Harder to convince; more loyal once convinced.
Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy
Culture Vision Leadership THE BRAND/STORY ITSELF! Psssst! Wanna see my porn collection?
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
U.S.A. Economic Story #1: 10.6M 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.
Rules for Marketing to Women *Women are not a minority *Beware stereotypes (Home Depot thought women influenced home-improvement projects but didnt do home renovations) *Focusing on women DOES NOT TURN OFF MEN *Get direct feedback from women (it happens less than you think)
*Beware age differences (todays young women like hot cars as much as young men this wasnt always the case) *To target women, the brand does not need to be rebuilt, but repositioned Source: Investors Business Daily/06.13.05 Why? *
Albertsons Gets It* Albertsons CEO Larry Johnston ( a GE alum) on women in top slots: Women have insights into our customers that no manno matter how bright, no matter how hard workingcan match. Thats important when 85 percent of all consumer buying decisions made in our stores are made by women. Retail analyst Burt Flickinger calls the absence of women in top slots,
pre-Johnston, the companys tragic flaw. He adds, It was a bunch of old white guys making erroneous assumptions and erroneous conclusions about women and the multicultural consumers that make up the majority of Albertsons customers. *Only large global corporation with over 50% women (6 of 11) on its Board To be a leader in consumer products, its critical to have
leaders who represent the population we serve. Steve Reinemund/PepsiCo 7-Eleven Males: TAKE PLEDGE2005! I PLEDGE THAT I WILL NEVER ENGAGE IN ANY SORT OF DISCUSSION OF PRODUCTS-SERVICES-EXPERIENCES THAT
INCLUDE WOMEN AS CUSTOMERS-CLIENTS, UNLESS ONE THIRD OR MORE OF THOSE PRESENT & IN POSITIONS OF AUTHORITY ARE WOMEN. IN SUCH SETTINGS, I PLEDGE THAT I WILL WORK TIRELESSLY TO ENSURE THAT WOMENS VIEWS ARE HEARD FIRST & LAST AND ARE CLEARLY INCORPORATED IN A COMMANDING WAY IN ACTION PLANS. I PLEDGE THAT I WILL NOT SIGN OFF ON AN INITIATIVE AIMED PRIMARILY AT WOMEN UNLESS WOMEN ARE ALMOST UNANIMOUSLY IN AGREEMENT. I FURTHER PLEDGE THAT I WILL BECOME A PIONEER IN GETTING WOMEN-CENTRIC
VIEWS CLEARLY INTO THE MAINSTREAM. Customer is King: 4,440 Customer is Queen: 29
Source: Steve Farber/Google search/04.2002 KR: The religious use of She! 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
In Dove Ads, Normal Is the New Beautiful Headline, Advertising Age/09.27.04 Doves Campaign Ads Are Raging Success Because They Are Aspirationable, But Doable* Dr Joyce Brothers/ Advertising Age articleheadline/08.05
*Unilever: For too long beauty has been defined by naqrrow, unattainable stereotypes. Its time to change all that because real beauty comes in many shapes, sizes, colors, and ages. Dr Brothers: everyday people The disconnect between the Barby-esque model and the average woman begins to fade. looks vs beauty Unilever brand Doves use of six generously proportioned real women to promote its skin-firming preparations must qualify as one of the most talkedabout marketing decisions taken this summer. It
was also one of the most successful: Since the campaign broke, sales of the firming lotion have gone up 700 percent in the UK, 300 percent in Germany and 220 percent in the Netherlands. Financial Times/09.29.04
Five Clichs of Women (as Portrayed by Advertisers) Perfect Mum Alpha Female Fashionista Beauty Bunny Great Granny Source: The Independent /09.29.04 (on forthcoming First London Think Pink Conference)
Secrets of Marketing to Women 1. Show her real women and relatable scenarios. 2. Focus on connection and teamwork. 3. Capture her imagination by using stories. 4. Make it multisensory. 5. Add the little extras. 6. Tap the emotional power of music. 7. Create customer evangelists. 8. Form brand alliances.
Source: Lisa Johnson & Andrea Learned, Dont Think Pink: What Really Makes Women Buy and How to Increase Your Share of This Crucial Market 16. Re-imagine the Customer II: Trends Worth Trillion$$$ Boomer Bonanza/ Godzilla Geezer.
Re-imagine the Customer II: Trends Worth Trillion$$$ Boomer Bonanza/ Godzilla Geezer. (Stop Being Such Damn Fools II.)
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%) 44-65: New
Customer Majority * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder The New Customer 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 Boomers: Were not going gently. Were going the way our generation does everything else. Research it. Make sure youre getting the best deal. Study the alternatives the way we studied alternative famlies and alternative diets and
alternative religions. Baby Boomers Want Less Pain And More Grace Before That Good night, reads one headline James Atlas/ My Life in the Middle Ages Boomers/78.6M: 30% higher spending per person in family ($19,000), vs younger families; center (45-54) has highest household income ($68,000) and highest household spending
($50,000); boomers have lowest poverty rate (7.6%); boomers still buying cool cars; etc. Source: Advertising Age/07.05 Top Franchises: Boomer-driven! *Comfort Keepers. Non-medical home care, such as running errands, doing the laundry, companionship. (472 franchises to date) *Liberty Fitness. Middle-aged (35-65) overweight women
who want to avoid the generic fitness clubs. (65) *Sarah Adult Day Services. For seniors who dont need constant care. (27) *Outdoor Lighting Perspectives. Aimed at boomers, especially in warmer climates, who are turning their homes into year-round vacation properties. (61) *Camp BowWow. Doggie day care, targeting affluent seniors who travel frequently. (52) *Verlo. Personalizes bed mattresses aimed at affluent boomers. (68)
Source: CNNMoney/07/05) Baby-boomer Women: The Sweetest of Sweet Spots for Marketers David Wolfe and Robert
Snyder, Ageless Marketing 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 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 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 Focused on assessing the marketplace
based on lifetime value (LTV), marketers may dismiss the mature market as headed The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life. Carol Morgan & to its grave. Doran Levy, Marketing to the Mindset of Boomers and Their
Elders Dumb? Or Dumber? While Foxs overall ratings are down about 6% from last year, the network has moved from fourth place into first among viewers from ages 18 to 49, which all the networks other than CBS define as the only competition that counts. New York Times/11.01.04
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 Possession Experiences /Desires for
things/Young adulthood/to 38 Catered Experiences/ Desires to be served by others/Middle adulthood Being Experiences/Desires for transcending experiences/Late adulthood Source: David Wolfe and Robert Snyder/Ageless Marketing Thanks to a rising tide of aging baby boomers determined to
unwind and look good as long as they can, the U.S. spa business is surging. In the past five years the number of spas has more than doubled to more than 12,000. The Wall Street Journal Europe/01.21.2005 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 Road Signs of the Times: Creating an easier-to-read typeface for aging drivers The New York Times/ 01.21.2005
Sixty Is the New Thirty Cover/AARP/11.03 No: Target Marketing Yes: Target
Innovation & Target Delivery Systems 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 Bonus. The Hunch of a Lifetime: An Emergent (Market) Nexus
I have a sense/hunch theres an interesting nexus among several of the ideas about New Market Realities that I promote namely Women-Boomers-WellnessGreen-Intangibles. Each one drives the Fundamental (Traditional) Economic Value Proposition toward the softer side: From facts- & figures-obsessed males toward relationship-oriented Women. From goods-driven youth toward experiences-craving Boomers. From quick-fix & pill-popping healthcare toward a holistically inclined Wellness Revolution. From mindless exploitation of the Earths resources toward increased awareness of the fragility and preciousness of our Environment. From goods and services toward Design& Creativity-rich Intangibles-Experiences-Dreams Fulfilled. This so-called softer sideas the disparate likes of IBMs Sam Palmisano and Harley-Davidsons Rich Teerlink teach usis now & increasingly where the loot is, damn near all the
loot. That is, the softer side has become the Prime Driver of tomorrows hard economic value. Furthermore, each of the Five Key Ideas (Women-BoomersWellness-Green-Intangibles) feeds off and complements the other four. Dare I use the word synergy? Perhaps. (Or: Of course!) I can imagine an enterprise defining its raison detre in terms of these Five Complementary Key Ideas. (HINT: DAMN FEW DO TODAY.) An Emergent Nexus Men ..... Women Youth Boomers/Geezers Fix ItHealthcare... Wellness/Prevention
Exploit-the-Earth ...... Preserve/Cherish the Planet Tangibles Intangibles Jeffrey Immelt Turns Green. Has General Electric Gone Ecomad? cover story/Forbes/08.05 Toyota To Add 10 Hybrids To Lineup: Carmaker Projects 600,000* Sales
Annually Headline/USA Today/08.05 *25% U.S. sales within this decade Companies Step Up Wellness Efforts: Rising health costs provide incentive to promote healthier employee lifestyles headline/USA Today/08.05
Fastest growing demographic: Single-person Households (>50% in the likes of London, Stockholm) Source: Richard Scase Building the Beisbol Brand cover story/NYT Magazine/07.25
(on GM Omar Minaya and the Mets) 2004 Hispanic population: 41.3M Hispanic population 2050: 24.4% Source: Advertising Age VI. NEW BUSINESS. NEW BEDROCK.
17. Re-imagine the Individual I: Welcome to a Brand You World Distinct or Extinct Globalization1.0: Countries globalizing (1492-1800) Globalization2.0: Companies globalizing (1800-2000)
Globalization3.0 : Individuals collaborating & competing globally (2000+) Source: Tom Friedman/The World Is Flat 1. Can someone overseas do it cheaper?
2. Can a computer do it faster? 3. Is what youre selling in demand in an age of abundance? Source: Dan Pink 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 The electrician knows!
Steps: One busboy will become a Waiter. One waiter will become a Maitre D. One Maitre D will become a Restaurateur. One restaurateur will become World Famous. Message: IT STARTS BY BECOMING THE BEST BUSBOY YOU CAN BE!
You are the storyteller of your own life, and you can create your own legend or not. Isabel Allende One of the defining characteristics [of the change] is that it will be less driven by countries or corporations
and more driven by real people. It will unleash unprecedented creativity, advancement of knowledge, and economic development. But at the same time, it will tend to undermine safety net systems and peanalize the unskilled. Clyde Prestowitz, Three Billion New Capitalists Advanced country workers with the same skills as Chinese or Indian workers will not be
able to compete unless they are willing to accept Indian or Chinese wages. Moreover, in a peculiar way, the playing field will tilt toward the two new giants of the global economy. The potential size of their markets, their endless supply of low-cost labor, the unique combination of many highly skilled but low paid professionals, and the investment incentives offered their governments will constitute an irresistible package that will attract investment away not only from the first world but from other developing countries as well. China, for example, could be a real problem
for Mexico Clyde Prestowitz, Three Billion New Capitalists 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!
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 R.D.A. Rate: 15%?, 25%? Therefore: Formal Investment Strategy/ R.I.P.*
*Renewal Investment Plan 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
Have you invested as much this year* in your career as in your car? *Absolute$$$, % of Asset Value Source: Molly Sargent 26.3
New Work SurvivalKit2005 1. Mastery! (Best/Absurdly Good at Something!) 2. Manage to Legacy (All Work = Memorable/Braggable WOW Projects!) 3. A USP/Unique Selling Proposition (R.POV8: Remarkable Point of View captured in 8 or less words) 4. Rolodex Obsession (From vertical/hierarchy/suck up loyalty to horizontal/colleague/mate loyalty) 5. Entrepreneurial Instinct (A sleepless Eye for Opportunity! E.g.: Small Opp for Independent Action beats faceless part of
Monster Project) 6. CEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!) 7. Mistress of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring interesting you to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. Embrace Marketing (Your own CSO/Chief Storytelling Officer) 12. Passion for Renewal (Your own CLO/Chief Learning Officer)
13. Execution Excellence! (Show up on time! Leave last!) TP & UA Ops Manager: National service? Who knows? But we believe that every would-be leader should have waited table for at least two years! * *Customer service, make-each-Customer the Absolute Center of Attention at all times, pursue repeat business, take the blame from one and all, provision of scintillating experience,
serve many masters (Client, Maitre d, chef, busboy, owner, etc), hustle but exude calm/grace, multi-task, sunny attitude no matter how much shit has hit the fan, etc. Distinct or Extinct Make each day a Masterpiece!
-JW IN SILICON VALLEY IF YOU ARE NOT STOLEN AWAY BY SOME COMPANY EVERY FEW YEARS (OR MONTHS) YOU ARE NOT CONSIDERED A HOT PROPERTY. STABILITY IS A MARK OF
SHAME. Source: Juan Enriquez/As the Future Catches You It became clear to me as I listened to peoples stories over the years that work is where lives are really played out. More than in church, this is where we put our blood, sweat and tears. You spend years getting educated and trained for work, then you
go to work, then you recover from work, you raise kids hoping they get workand then life is over. If were going to look hard at impacting culture and history with values that are worth passing on, work is the place. Matthew Fox, Episcopal priest and author of The Reinvention of Work (worthwhile) Do one thing every day that scares you. Eleanor
Roosevelt WOW! The Project. 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!) This is the true joy of Life, the being used for a purpose recognized by yourself as a
mighty one the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy. GB Shaw/ Man and Superman (from Mike Ray, The Highest Goal) Implementing WOW for NonCEOs:
The F4 Recipe. THE IDEA: Model F4 Find a Fellow Freak Faraway Nobody gives
you power. You just take it. Roseanne We Live In A Brand You World Tom Peters/12.22.2004 There is no job
that is Americas God-given right anymore. Carly Fiorina/ HP/ 01.07.2004 We live in a Brand You
world. Tom Peters Nobody can prevent you from choosing to be exceptional. Mark Sanborn, The Fred Factor To live is the rarest thing in the world.
Most people exist, that is all. Oscar Wilde If I can reduce my work to just a job I have to do, then I keep myself safely away from the losses to be endured in putting my hearts desires at stake. David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of
Identity Make each day a Masterpiece! -JW Make your life itself a creative work of art.
Mike Ray, The Highest Goal This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one the being a force of Nature instead of a feverish, selfish little clod of ailments
and grievances complaining that the world will not devote itself to making you happy. GB Shaw/ Man and Superman (from Mike Ray, The Highest Goal) If I can reduce my work to just a job I have to do, then I keep myself safely away from the losses to be endured in putting my
hearts desires at stake. David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity Toward Firm Persuasion Then I asked: Does a firm persuasion that a thing is so make it so? He replied: All poets believe that it does, and in ages of imagination this firm persuasion
removed mountains; but many are not capable of a firm persuasion of anything. William Blake, The Marriage of Heaven and Hell (from David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity) To have a firm persuasion in our workto feel that what we do is right for ourselves and good for the world at
exactly the same timeis one of the great triumphs of human existence David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity The antidote to exhaustion is not rest, it is wholeheartedness.
David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity All of our artistic and religious traditions take equally great pains to inform us that we must never mistake a good career for good work. Life is a creative, intimate, unpredictable conversation if it is nothing elseand our life and our work are both the
result of the way we hold that passionate conversation. David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity To Be somebody or to Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
Tell me, what is it you plan to do with your one wild and precious life? Mary Oliver Joe J. Jones 1942 2005 HE WOULDA DONE SOME
REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM! T. J. Peters 1942 2--- HE WAS A PLAYER! My Kinda Folks!
Tom Peters/0720.2005 *Do vs Be** (The task, not the title, is important) (**Military strategist extraordinaire Col John Boyd: 2 kinds of people. Do focus obsessively on the work itselfand damn the torpedoes. Be obsess on the politics, the rank, the next promotion or assignment.) *Intuitive > Purely logical. (Routinely make strange connections)
*Incredible passion for the work/Lingering idealism (though also cynicalparadox) *Persistent/Relentless (to a fault) *Like the long shots (Don Quixote-ish) *Stay on the case long after being ordered to My Kinda Folks! *Cases no one else wants (hot potatoes, dead ends, political nightmares, unimportant victims)
*Constant thorns in the side of bureaucracy!!!!!!!!!!!!!!!! *Repeatedly exiled to professional Siberia (so annoyingly good and so annoying per se that others try to do him terminal professional harm) *Little in the way of career prospects
*Have a Godfather (need internal protectionthough even protectors lose patience) *Work mostly solo (Secretive) *Work old pals network to get info-leads beyond their charter My Kinda Folks! *Master
of the End Run! *Mentor (often to an incredibly talented young woman fighting the sexist culture) *Curmudgeonly *Often their own worst enemies *Drink too much
*Dont work out enough *Sneak fast food *Excessive work has estranged from family *More or less shabbily dressed *Drive shabby cars *Not money/security oriented (ant help themselves, just gotta get involved) My Kinda Folks! *Not money/security oriented (cant help themselves,
just gotta get involved) *Carry a secret/hidden motivator in their kit (e.g. someone close he feels he let down, leading to their death) *GET THE DAMN JOB DONE! (and dont expect/get much appreciation)
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. If you dont listen, you dont sell anything. Carolyn Marland/MD/Guardian Group 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! Success or Failure? Try Instead Optimism or Failure! From Martin Seligmans Learned Optimism: I believe the traditional wisdom is incomplete. A composer can have all the talent of a Mozart and a passionate desire to succeed, but if he
believes he cannot compose music, he will come to nothing. He will not try hard enough. He will give up too soon when the elusive right melody takes too long to materialize. Success requires persistence, the ability to not give up in the face of failure. I believe that OPTIMISTIC EXPLANATORY STYLE is the key to persistence. The optimistic-explanatory-style theory of success says that in order to choose people for success in a challenging job, you need to select for three characteristics: (1) Aptitude. (2) Motivation. (3) Optimism. All three determine success.
(Note: Seligmans extensive work with Met Life salespeople, among others, proved out the abovein spades.) Pessimist: Good things Im worthless, but got lucky on this one. Bad things Im a bozo who deserved my sorry fate. Optimist: Good things I deserved
that; Im the cats meow. Bad things Im the cats meow, but the cat had an unlucky day; tomorrow will be better for sure. Three for the Ages GETTING TO YES Roger Fisher, William Ury, Bruce Patton LEARNED OPTIMISM Martin Seligman
CRUCIAL CONFRONTATIONS Kerry Patterson, Joseph Grenny, Ron McMillan, Al Switzler Getting Things Done: The Power & Implementation34.
*Send Thank You notes! Its (always) all about relationships. And at the Heart of Effective Relationships is APPRECIATION. (Oh yeah: Never, ever forget a birthday of a co-worker.) *Bring donuts! Small gestures of appreciation (on a rainy day, after a long days work the day before) are VBDs Very Big Deals. *Make the call! One short, hard-to-make call today can avert a relationship crisis that could bring you down six months from now. *Remember: There are no little gestures of kindness. As boss, stopping by someones cube for 30 seconds to inquire about their
sick parent will be remembered for 10 years. (Trust me.) *Make eye contact! No big deal? Wrong! It is all about Connection! Paying attention! Being there in the Moment Present. So, work on your eye contact, your Intent to Connect. *Smile! Or, rather: SMILE. Rule: Smiles beget smiles. Frowns beget frowns. Rule: WORK ON THIS. *Smile! (If it kills you.) Energy & enthusiasm & passion engender energy-enthusiasm-passion in those we work with. *Its all RELATIONSHIPS. Remember: Business is a relationships business.
(Period.) Were all in sales! (Period.) Connecting! Making our case! Following up! Networking! Relationships are what we do. *You = Your Calendar. Your true priorities are given away by your calendar. YOUR CALENDAR NEVER LIES. What are you truly spending your time on? Are you distracted? Focused? *Whats in a number? EVERYTHING! While we all do a hundred things, we may not/should not/cannot have more than 2 (or 3) true strategic priorities at any point in time. BELIEVE IT. *She (he) who is best prepared wins! Out study, out-read, out-research the competition. Know more (lots more!) than the person on the other side of the table.
*Excellence is the Ultimate Cool Idea. The very idea of pursuing excellence is a turn onfor you and me as well as those we work with. (And, I find to my dismay, its surprisingly rare.) *Think WOW! language! Language matters! Hot words generate a Hot Team. Watch your *Take a break! We need all the creativity we can muster these days. So close your office door and do 5 (FIVE) minutes of breathing or yoga; get a bag lunch today and
eat it in the park. *You are the boss! Old ideas of lifetime employment at one company (maybe where Dad/Mom worked) are gone. No matter what your current status, think of your self as CEO of Brand Me, Inc. We are all Small Business Owners of our own careers. *Do something in the next half hour! Dont let yourself get stuck! There is ALWAYS something little you can start/do in the next thirty minutes to make a wee, concrete step forward with a problem-opportunity. *Test it! NOW! We call this the Quick Prototype Attitude. One of lifes, especially
business lifes, biggest problems is: Too much talk, too little do. If youve got a Cool Idea, dont sit on it or research it to death. Grab a pal, an empty conference, and start laying out a little model. That is, begin the process of transforming the Idea to Action ASAP. Incidentally, testing something quarter-baked in an approximation of the real world is the quickest way to learn. *Expand your horizons. Routinely reach out beyond your comfort zone. TAKE A FREAK TO LUNCH TOMORROW! Call somebody interesting youve been meaning to get in touch with; invite them to lunch tomorrow. (Lunch with the same ole gang means nothing new learned. And thats a guarantee.) (Remember: Discomfort = Growth.)
*Build a Web site. The Web is ubiquitous. Play with it! Be a presence! Start You.com ASAP! *Spread the credit! Dont build monuments to yourself, build them to others those whose contributions we wholeheartedly acknowledge will literally follow us into machine gun fire! *Follow Toms patented VFCJ strategy! VFCJ = Volunteer For Crappy Jobs. That is, volunteer for the crummy little assignment nobody else wants, but will give you a chance to (1) be on your own, (2) express your creativity, and (3) make a noticeable mark when it turns out Wow.
*VOLUNTEER! Lifes a maze, and you never know whats connected to what. (Six degrees of separation, and all that.) So volunteer for that Community Center fund raising drive, even though youre busy as all get out. You might end up working side-by-side with the president of a big company whos looking for an enthusiast like you, or someone wealthy who might be interested in investing in the small business you dream of starting. *Join Toastmasters! You dont need to try and match Ronald Reagans speaking skills, but you do need to be able to speak your piece with comfort, confidence and authority. Organizations like Toastmasters can help enormously.
*Dress for success! This one is old as the hills and I hate it!! But its true. FIRST IMPRESSIONS DO MATTER. (A lot!!!) *Follow the Gospel of Experience Marketing in all you do. The shrewdest marketers today tell us that selling a product or service is not enough in a crowded marketplace for everything. Every interaction must be reframed as a Seriously Cool Experience. That includes the little 15-minute presentation you are giving to your 4 peers tomorrow. *Think of your resume as an Annual Report on Brand Me Inc. Its not about keeping your resume updated. It is about having a Super-cool Annual
Report. (Tom Peters Inc 2004.) What are your stunning accomplishments that you can add to that Report each 6 months, or at the most annually? *Build a Great Team even if you are not boss. Best roster wins, right? So, work on your roster. Meet someone new at Church or your kids birthday party? Add them to your team (Team Tom); you never know when they might be able to assist you or give you ideas or support for something you are working on. *She or he who has the Fattest & and Best-managed Rolodex wins. Your Rolodex is your most cherished possession! Have you added 3 names to it in the last 2 weeks? Have you renewed acquaintance (email, lunch, gym date)
with 3 people in your Rolodex in the last month? MANAGE YOUR ROLODEX! *Start your own business! Sure thats radical. But people are doing it especially womenby the millions. Let the idea percolate. Chat about it, perhaps, with pals. Start a file folder or three on things you Truly Care About that just might be the basis for Cool Self-employment. *Theres nothing cooler than an Angry Customer! The most loyal customers are ones who had a problem with us and then marveled when we went the Extra Ten Miles to fix it! Business opportunity No. 1 = Irate
customers converted into fans. So are you on the prowl for customer problems to fix? *All marketing is Relationship Marketing. In business, profit is a byproduct of bringing em back. Thus, systematic and intense and repeated Follow-up and After-sales Service and Scintillating New Hooks are of the utmost importance. *BRANDING aint just for Big Dudes. This may well be Business Mistake No. 1 the idea that branding is only for the likes of Coke and Sony and Nike. Baloney! Branding
applies as much for the one-person accountancy run out of a spare bedroom as it does for Procter & Gamble. *Credibility! In the end Character Matters Most. Does he/ she give their word, and then stick to it come hell & high water? Can you rely on Her/Him in a pinch? Does she/he CARE? *Grace. Is it a pleasure to do business with you? Is it a pleasure to be a member of your team? Presentation
Excellence: The PresX56 The problem with communication ...is the ILLUSION that it has been accomplished George Bernard Shaw
Presentation Excellence 1. Total commitment to the Problem/Project/Outcome 2. A compelling Story line/Plot 3. Enough data to sink a tanker (98% in reserve) 4. Know the data from memory; ability to manipulate the data in your head 5. Great Stories/Illustrations/Vignettes 6. Superb political antennae (you must play the room like a Virtuoso and be hyper-attentive to the likes of Body Language) 7. By hook or by crook CONNECT
7A. CONNECT! CONNECT! CONNECT! 8. Punch line/Plot Outline/WOW/Surprise in first one to two minutes Presentation Excellence 9. Once youve won stop pushing (dont rub it in) 10. Be in command but dont show off (if youre brilliant theyll figure it out for themselves) 11. Pay attention to the Senior Person present, but not too much
(dont look like/act like/be a suck up) 12. Brief the hell out of your champions before the presentation; insist that they make changes/fine tune ... they must own the outcome before the fact! 13. Dont try to score off your detractors be especially courteous to them (even if/especially if theyre jerks) 14. Adjust as you go: LET THE GROUP ARRIVE AT YOUR CONCLUSION! THEY MUST OWN IT (I knew that) IN THE END! Presentation Excellence
15. No more than THREE key points! Come at them in several different ways. 16. No more than ONE point per slide! 17. Slides: NO CLUTTER!!!!!!!!!!!!!!!!!!!!! (no wee print/ charts/graphs) 18. Slides: Good quotes from the field. (Remember youre telling a story) 19. Be aware of differing cognitive styles, especially M-F 20. There must be surprise some key facts that are not commonly known/are counter-intuitive (no reason to do the
presentation in the first place if there are no Surprises) 21. Summarize the argument/story from time to time 22. Include an Action Agenda that involves some small items that will be started/accomplished in the next 72 HOURS (this ices commitment/practicality) Presentation Excellence 23. If you dont know something ADMIT IT! (this is actually a good thingas opposed to appearing as a know it all) 24. ASK FOR THE SALE! (Remember to be a closer)
25. This is War (a war for Hearts & Mind), but never forget that you are the Supplicant! 26. Data are imperative, but also play to Emotion. 27. Consider bringing along a customer (internal or perhaps external) for support 28. Be precisely clear where/when you intend to prototype and that the prototype guinea pig is lined up (better yet, do the first, at least partial, prototype before the presentation) 29. Compromise but dont yield! (Lost battles are normal, no matter how agonizing)
30. Assume that you may be cut off at any moment, and be prepared to give on the spot a compelling 30-second to oneminute (no longer!) Brilliant Summary including Sales Pitch Presentation Excellence 31. Follow the Law of Recency: Make sure that you have been in the field with the key operating players more recently than anyone in the room 32. Make it clear that youve done a Staggering Amount of Homework, even though you are exhibiting but a tiny fraction allude to the tons of research that are available if desired by
participants; offer deeper one-on-one briefings if desired 33. SMILE! RELAX (to a point) (fake it if necessary) (up tight is disastrous) (remember you are doing them a favor by sharing this Compelling Opportunity!) 34. EYE CONTACT!!!!!!! 35. Be shrewd: Override some interruptions; be attentive to others (distraction is okay and normal within limits!) 36. Becoming an Excellent Presenter is as tough as becoming a great baseball pitcher. THIS IS IMPORTANT and Presentation Excellence is never accidental! (Work your buns off!)
Presentation Excellence 37. Practice but dont leave your game in the locker room. 38. Seek tips on how various participants play the [presentation] game 39. A Presentation is an Act (FDR: The President must be the nations number one actor) 40. Remember, the presentation is about Change RESISTANCE IS NORMAL (in fact if theres little resistance then your Project is hardly a game changer)
41. Dress well. Dont over-dress. 42. Be early (obvious, but worth saying) 43. GET THE A/V RIGHT/PERFECT. 44. Dont bring a supporting horde a couple of back-ups is okay/enough 45. No matter how good you are youll have crappy days WEEP AND THEN GET BACK ON THE HORSE Presentation Excellence 46. Speak in Plain English keep the jargon to a minimum
47. Make your Personal Commitment clear as a bell! 48. Emphasize competitive advantage and timeliness (act now), without stooping to ridiculous war-like language (tear the heart out of the competition) (in audiences with heavy female component, if you are male, avoid repetitive football analogues) 49. Underscore the USP/Unique Selling Proposition 50. Emphasize the Positive 51. Sell Novelty yet fit with core values 52. Remember JFKs immortal words: The only reason to give
a speech is to change the world Presentation Excellence 53. Say what you have to say Clearly and then Say It Again & Again from slightly different angles 54. Make it clear that you are a Man/Woman of Action and Execution Excellence is your First, Middle, and Last Name! 55. Energy! Enthusiasm! (dont know the answer to, If you aint got it how do you get it?) 56. Enjoy it! This is a Hoot! THE ULTIMATE TURN ON! Remember
your Goal: Change the world! In classical times when Cicero had finished speaking, the people said, How well he spoke, but when Demosthenes had finished speaking, they said,
Let us march. Adlai Stevenson Let us march. The Interviewing
Excellence: The IntX31 Interviewing Excellence 1. INTERVIEWING IS AN ART WORTH MASTERING! (Think Christine Amanpour, Mike Wallace) 2. Dont overschedule2 or 3 in depth interviews are a solid days work. (More than that is lunacy and will lead to shallow results.) 3. Save, if possible, the Big Guy/Gal until lastthat is, until you know what the hell youre doing!
4. Find a comfy/safe/neutral setting. THIS IS ALL IMPORTANT! (Worst case: You on the other side of his/her desk.) 5. Start with a little bit (LITTLE) of local small talk. But get some tips on the interviewee ahead of time; he may be one of the brusque ones who considers any small talk a waste of his Imperial Time. 6. DO YOUR DAMN HOME WORK! (On the interviewee, the subject matter.) 7. Concoct a LONG LIST of questions. (Youll ony use 10% ot it, but thats okay.) Interviewing Excellence
8. Prepare a SHORT LIST of questions you must get answered. 9. Begin by briefly reviewing your assignmentwhy youre here. 10. ALWAYS ASK FOR EXAMPLES! (When she says Customer Service is in good shape, you ask for specificshard data, recent Customer Service successes (and failures). And: PRECISELY WHO YOU CAN FOLLOW UP WITH TO GET MORE DETAIL. 11. STORIES! STORIES! STORIES! (You are in the Story Collection Business.) 12. Dress well. DONT OVERDRESS. (Look like they look, more or less; perhaps a touch more formalthis is a Serious Affair you are engaging in.)
13. Assume youll never get another chance to talk to this person. 14. Be personable, but more or less match the interviewees style. (THIS IS HARD WORK!) 15. THINK SMALL! Please walk me in great detail through the [complaint resolution] process. Here, lets diagram it. Interviewing Excellence 16. For Gods sake, get to the Front Line! (The devil is in the details, and the details are to be found on the loading dock at 3a.m.) (YES 3A.M.) 17. Dont quit until you understand. THE INTERVIEWEE ALWAYS TALKS IN
SHORTHANDusing the jargon of the Corporate Culture. Youve got to crack the code. (THIS IS ABOUT THE HARDEST THING TO DO, ESPECIALLY IF YOU ARE YOUNG AND UNCERTAIN: Tell yourself you are here to ask Dumb Questionsthis is not a job interview. Again, think Mike Wallace: So did you in fact murder Mrs. Smith?) 18. Ignore generalizations! YOU ARE HERE IN SEARCH OF SPECIFICS!!! 19. CONTEXT! Get the corporate culturee.g. Shell is not ExxonMobil! Find out (from a set of interviewees) Core Values (in theory and in practice).
Interviewing Excellence 20. Engage the Interviewee! GET HER TO DO SOME OF THE WORK! E.g., write out her view of the Ten Key Operative Core Valuesor some such. 20A. ENGAGE! ENGAGE! ENGAGE! 21. You must come across as trustworthy. YOU ARE A DUMBO HERE TO LEARNNOT AN FBI AGENT IN DISGUISE. 22. Take me through yesterday. Get past the theoretical crap. Give me in excruciating detail an average day: YESTERDAY! (One hour/meeting at a time.) 23. If youre comfortable, lets go over your Calendar for the last month, so I
can understand the flow of things. (Remember TPs Rule #1: YOU = YOUR CALENDAR.) 24. DONT LET YOUR NOTES AGE!! Immediately after the interview set aside some time to do a stream of consciousness recap. And to clean up the obscure scrawl on your notes. Interviewing Excellence 25. Ask the interview if you can get back to her by phone tomorrow to fill in holes that your tin ear missed. NO MORE THAN TEN MINUTES. 26. LEARNING! Tag along with great interviewers in your organization. (I
made three PBS films with a Director who had been Mike Wallaces director at 60 Minutesoh my God, how much I learnedor, rather, how little I learned: He could drag stuff out of people that you couldnt believe. (Secret: Im just a dumb old fart trying to figure out what goes on here. HELP ME. PLEASE.) 27. Work on your Level of Dis-satisfaction: BE MAD AS HELL WHEN YOU SPENT 1.5 HOURS ON AN INTERVIEW WITHOUT REVALATIONS! 28. No, youre not FBIBUT YOU ARE HERE TO FERRET OUT THE NON-OBVIOUS. So: Keep Digging! (Think Woodward & Bernstein.) Interviewing Excellence
29. Repeat: INTERVIEWING IS A CRUCIALLY IMPORTANT ART. Study it! Work on it! Its no different than golf or underwater basket-weaving. The more & harder you work, the better you get. 30. Yes, we need facts (e.g., stories), but remember alWays: INTERVIEWS ARE PURE & SIMPLE ABOUT EMOTIONAL INTERACTION! 31. Tom Wrap-up Note: FEW THINGS IN LIFE PISS ME OFF MORE THAN GOING THROUGH SOMEONES INTERVIEW NOTES AND FINDING A DEARTH OF SOLID EVIDENCEexamples., stories, detailed process maps, etc. (I BLOODY HATE Generalizations!) (Think doctors office: Come hell & high water they stert with weight, blood pressure, pulse.)
17A. Re-imagine the Individual II: New Healthcare/Wellcare for a Brand You World 2 38 m
s TPs: State of Healthcare Acute Care/Quality: 5* Growls Prevention/Wellness: ????? Big Pharma: 4 Growls *5 Growls = Worst possible
Rule #1. Attend the Duh Factor! Model The Way! DO NOT SERVE BOUNTIFUL BASKETFULS OF FATTY-SUGARY CRAP & BUCKETSFUL OF HIGH-OCTANE COFFEE AT BREAKS DURING HEALTHCARE MEETINGS. Think: Fruit! Think: Tea! Think: Duh! Healthcares 1-2 Punch
1. Hospital quality control, at least in the U.S.A., is a bad, bad joke: Depending on whose stats you believe, hospitals kill 100,000 or so of us a yearand wound many times that number. Finally, they are getting around to dealing with the issue. Well, thanks. And what is it weve been buying for our Trillion or so bucks a year? The fix is eminently do-able which makes the condition even more intolerable. (Disgrace is far too kind a label for the condition. Whos to blame? Just about everybody, starting with the docs who consider oversight from anyone other than fellow clan members to be unacceptable.)
2. The systemtraining, docs, insurance incentives, culture, patients themselvesis hopelessly-mindlessly-insanely (as I see it) skewed toward fixing things (e.g. Me) that are brokennot preventing the problem in the first place and providing the Maintenance Tools necessary for a healthy lifestyle. Sure, bio-medicine will soon allow us to understand and deal with individual genetic pre-dispositions. (And hooray!) But take it from this 61-year old, decades of physical and psychological self-abuse can literally be reversed in relatively short order by an encompassing approach to life that can only be described as a Passion for Wellness (and
Well-being). Patientslike meare catching on in record numbers; but the system is highly resistant. (Again, the doctors are among the biggest sinnersno surprise, following years of acculturation as the man-with-the-white-coat-who-will-now-miraculously-dispensefix it-pills-for-you-the-unwashed. (Come to think of it, maybe Ill start wearing a White Coat to my doctors officeafter all, I am the Professional-in-Charge when it comes to my Body & Soul. Right?) Toms Rant Patient Safety (Curb the Killing Fields!)
Planetree Alliance/Griffin Hospital (Put the Care back in Healthcare!) Canyon Ranch (Re-imagine: Wellness-Prevention!) Welcome to the Homer Simpson Hospital a/k/a The Killing Fields
Toms Cold Fury at Healthcare Professionals, Especially Acute Care Operatives 1. You are killers: Quality remains a bad joke. 2. Pick off bunches of Low-hanging Fruit. (E.g., Toms 1st Executive order as Your Next President: Providing a Handwritten Prescription is punishable by not less than 60 days of Hard Time.) 3. The science in medicine is often fanciful: Most scientific treatments are unverified. (So quit the kneejerk denigration of alternative therapiestrust me, Breathing Meditation beats Univasc; Good Nutrition beats Lipitor; Regular Exercise beats bypass surgery.)
4. You continue to obsess only on after-the-act fixes, the automatic resort to Chemicals and Knives, rather than P-W-H-C Prevention-WellnessHealing-Care. 5. Your Mindful Lifelong (mine) Failure to focus on P-W-H-C will probably cost me a decade of longevity, Canyon Ranch/Lenox not withstanding. THAT PISSES ME OFF. (For one thing, I need those 10 years to spread the P-W-H-C Credo to healthcare professionals.) 6. You are hereby ordered to stop using the term healthcare: You havent earned the right to utter the word care! 7. $$$$$ Are Not the Issue/Excuse I: Quality Is free!!! (There are MANY who are Getting This
Right without Buckets of $$$$$.) 8. $$$$$ Are Not the Issue/Excuse II: Planetree Alliance/Griffin Hospital Models The Way on P-W-H-C Every Day. IT CAN BE DONE! 9. ALL THESE PROBLEMS CAN BE FIXED! WE KNOW HOW! THERE ARE NO EXCUSES EXCEPT LACK OF GUTS & WILL! Its Attitude, Baby! 10. All members of staffregardless of professional disciplineare Healing Arts Practitioners. OR TURN IN YOUR EMPLOYEE BADGE. NOW. 10.27.2004/La Jolla
TP to Healthcare CIOs: You are not CIOs. You are Executive Members of an Integrated Healing Services Team (Healing Arts Team?) with a specialism in IS/IT.
Dear Mr. & Mrs. Smith, XYZ hospital regrets to inform you . . Sincerely, A. S. Jackson, Administrator T. D. Jones, M.D. R.L. Smith, CIO
You want implementation tips. I want Ownership, Accountability & Attitude! Quality: COULD IT
TRULY BE THIS HealthGrades/Denver: 195,000 hospital deaths per year in the U.S., 2000-2002 = 390 full jumbos/747s in the drink per year. Comments: This should give you pause when
you go to the hospital. Dr. Kenneth Kizer, National Quality . There is little evidence that patient safety has improved in the last five years. Dr. Samantha Collier Forum Source: Boston Globe/07.27.04
As many as 98,000 Americans die each year because of medical errors despite an unprecedented focus on patient safety over the last five years, according to a study released today [Journal of the American Medical Association]. Nationwide the pace of change is painstakingly slow. USA Today/
05.18.2005 Hospital infections kill an estimated 103,000 people in the United States a year, as many as AIDS, breast cancer and auto accidents combined. Today, experts estimate that more than 60 percent of staph infections are M.R.S.A. [up from 2 percent in 1974]. Hospitals in Denmark, Finland and the Netherlands once faced similar rates, but brought them down to below 1 percent. How? Through the rigorous enforcement of rules on hand
washing, the meticulous cleaning of equipment and hospital rooms, the use of gowns and disposable aprons to prevent doctors and nuirsesfron spreading germs on clothing and the testing of incoming patients to identify and isolate those carrying the germ. Many hospital administrators say they cant afford to take the necessary precautions. Betsy McCaughey, founder of the Committee to Reduce Infection Deaths (New York Times/06.06.2005) This should give you pause when you go to
the hospital. There is little evidence that patient safety has improved in the last five years. 2 38 m s
Hospitals Pay Appropriate Attention To Medical Errors Yes . 1% Aware And Trying Hard ... 8% Aware But Tepid Response 22% No .. 25% An Inexcusable Tragedy .. 44% Source: 12.2004 Poll/tompeters.com
About Time! 100,000 Lives Campaign* *Don Berwick/Institute for Healthcare Improvement Electronic Medical Records Get Closer USA Today/06.07.05 Connecting for Healthcoalition pushing hcare connectivity
Here comes Steve ! Source: NYT/06.19.05 (Case) Big Pharma: 4 Growls
1. Discovery 2. Distn 3. Quality 4. Mergers Ontario To Split Health Ministry Headline/ Globe And Mail /06.05 (New ministry will focus on Prevention/
Wellness/Eldercare) Companies Step Up Wellness Efforts: Rising health costs provide incentive to promote healthier employee lifestyles headline/USA Today/08.05 Prevention Program
At Dow Chemical Aims To Save Money IBD/08.05 We must touch his weakness with a delicate hand. There are some faults so nearly allied to excellence that we
can scarce weed out the fault without eradicating the virtue. Oliver Goldsmith 18. Re-imagine Excellence I: The Talent Obsession.
Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind Human creativity is the ultimate
economic resource. Richard Florida, The Rise of the Creative Class Brand = Talent. 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 He revived the company not by rolling up his sleeves and building shoe molds in the design lab, nor by dreaming up new ads or slogans. Instead [Nike CEO Phil]
Knight did what he does best: find and motivate talented people, then let them do their thing. He brought in outsiders, stars like Mindy Grossman from Ralph Lauren Fortune/04.05 The Dawn of the Creative Age Theres a whole new class of workers in the U.S. thats 38million strong: the creative class. At its core are the scientists, engineers, architects, designers, educators, artists, musicians
and entertainers whose economic function is to create new ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare and related fields, in which knowledge workers engage in complex problem solving that involves a great deal of independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the workforce (more than all of manufacturing) and accounts for more than half of all wage and salary income (some $2 trillion) almost as much as the manufacturing and service sectors
together. Indeed, the United States has now entered what I call the Creative Age. Richard Florida/ HBR/10.04 U.S. Patent Office/Patents Granted 1985 Venezuela Argentina Mexico Brazil
South Korea 15 12 35 ... 30 50 1998
29 46 77 88 3,362 Source: Juan Enriquez/As the Future Catches You THE FUTURE BELONGS TO SMALL
POPULATIONS WHO BUILD EMPIRES OF THE MIND AND WHO IGNORE THE TEMPTATION OFOR DO NOT HAVE THE OPTION OFEXPLOITING NATURAL RESOURCES. Source: Juan Enriquez/As the Future Catches You PARCs Bob Taylor: Connoisseur
of Talent Headhunter Excellence? (CEO Performance vs S&P 500) Korn Ferry/Tom Neff: +1.1% Heidrick & Struggles/ Gerry Roche: -5.2% Selection Best Person
Track Record People Development People will follow into hell Fit Attitude Enthusiasm Energy Sense of Humor Do vs Be Action Bias
Try It Now Commitment to Change Proclivity for risk-taking Contrarian Political Skills Salesmanship Curiosity Obstreperousness Value Consistency Impeccable Integrity
Hard Worker The Eye-sparkle Factor: Some peoples eyes have an engaging, infectious sparkle. Some dont. Hire [only?] those have it? I was lecturing on talent selectionand the use of unconventional measures for so doing. At a break I made the following comment to a youthful Participant: Suppose you & I were opening the restaurant of our dreams. Wed both put in $75,000 effectively our lifes savings. We were betting the farm. We had a great idea, a very good location,
a terrific chef. Now the time had come to hire waiters & waitresses. Numerous applicants had satisfactory+ restaurant experience, but several didnt. One young woman [man] in particular was a rank amateurbut had the most compelling sparkle in her/his eye. How would that sparkle rank in your hire-no hire consideration? No great surprise, we both agreed, despite a 30-year experience differential, that the sparkle pretty much ruled. (Or some like measurese.g., hustle, enthusiasm.) Fact is, the Participant in question ran a 40person bit of an IS/IT department. And my real goal was to urge her to use the eye-sparkle Factor in IS/IT hiring almost to the same degree as in our choice of a waiter/waitress!
Q: If it were your $50K [lifes savings] and my $50K, what sort of Waiters would we look for? A: Enthusiasts! 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 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 Talent Pool strengthening issues.
DD$21M 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
We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased Pacific
profitability from $25 million to $80 million in 2 years. Ed Michaels, War for Talent Did We Say Talent Matters? The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but
10,000X. Nathan Myhrvold, former Chief Scientist, Microsoft THE HEART OF CELERA IS THE WORLDS LARGEST PRIVATE SUPERCOMPUTER FED 24 HOURS A DAY BY SEQUENCING ROBOTS AND CREATED-PROGRAMMEDCONTROLLED BY
A DOZEN GREAT MINDS. Source: Juan Enriquez/As the Future Catches You Wegmans: #1/100 Best Companies to Work for 84%: Grocery stores are all alike 46%: additional spend if customers have an emotional connection to a grocery store rather than are satisfied (Gallup)
Going to Wegmans is not just shopping, its an event. Christopher Hoyt, grocery consultant You cannot separate their strategy as a retailer from their strategy as an employer. Darrell Rigby, Bain & Co. The Cracked Ones Let in the Light Our business needs a massive transfusion of talent, and talent, I believe, is most
nonconformists, dissenters and rebels.David Ogilvy likely to be found among In fact, the revelation here that they were often at each others' throats suggests that intra-Python conflict may have been the catalyst that produced their inimitable humor. The "Pythons" Autobiography by the "Pythons" /review by Barry Forshaw
Social cohesion does not appear related to performance and so team members do not seem to have to like each other to perform well together. It seems that conflict and rivalry within a team can be a spur to success e.g. the West German rowing eight in the 1960's Olympic games won gold, but had been on the point of splitting up because of internal disputes. courtesy Trevor Gay
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 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) Costco
*$17/hour (42% above Sams); very good health plan; low t/o, low shrinkage *Low margins (When I started, Sears, Roebuck was th Costco of the country, but they allowed someone to come in under themJim Sinegal) Source: How Costco Became the Anti-Wal*Mart/NYT/07.17.05 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 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 Omnicom's acquisitions: not for size per se; buying talent; deepen a relationship with a client. (Advertising Age/ 07.05)
Omnicom very simply is about talent. Its about the acquisition of talent, providing the atmosphere so talent is attracted to it. (John Wren) I have always believed that the purpose of the corporation is to be a
blessing to the employees. Boyd Clarke Creativity Index: The 3 Ts Technology (HT Index/firms & $$$,
Innovation Index/patent growth) Talent (% with bachelors degrees+) Tolerance (Melting Pot Index/foreigners,
Bohemian Index/artists et al., Gay Index/rel. #s) Source: Richard Florida, The Rise of the Creative Class RE/MAX RE/MAX2004 100K associates/5K offices (52 countries) 20-22 transactions/agent vs 7-10
$360B-$400B transactions 32 consecutive years of growth Source: Everybody Wins, Phil Harkins & Keith Hollihan RE/MAX Find Princes & Princesses who say Yes to the dream! (Eagles dont flock) Agent-centric! (Agent is the Customer!) Culture of mutual support! Pace line Project Leadership!
Clear/Simple Top Line measures! Relentlessly focus on the Brand! Source: Everybody Wins, Phil Harkins & Keith Hollihan Talent! 1000/204/4* * Princes & Princesses who said Yes to the Dream (top agents, confident to operate without a safety net) Source: Everybody Wins, Phil Harkins & Keith Hollihan
Support Success! 100% commission Personal promotion PA (Skilled!) Pay you the day you close Source: Everybody Wins, Phil Harkins & Keith Hollihan The organization would
ultimately win not because it gave agents more money, but because it gave them a chance for better lives. Everybody Wins, Phil Harkins & Keith Hollihan A Life Success
Company RE/MAX: Source: Everybody Wins, Phil Harkins & Keith Hollihan Agent-centric: Youre not in the real estate business anymore; youre in the
real estate agent business! Source: Everybody Wins, Phil Harkins & Keith Hollihan Richard Pilarski, a RE/MAX broker in northern Toronto, acknowledges that he earns more aggregate money, with less aggravation, from 5 strong performers than from one superperformer, so why bother? Its all about the culture of excellence thats created as a result of having superperformers. As anyone who has
been involved in sports can confirm, a competitive individuals performance improves when the overall level of play gets raised. Eagles try harder when they are surrounded by other eagles. Everybody Wins, Phil Harkins & Keith Hollihan 19. 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
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)
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
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 80 percent of [women] respondents said they were comfortable with power and liked what they could accomplish with it. But women are redefining power, the survey showed; rather measuring it by traditional
means of having more people report to them or competing successfully for plum assignments, they say power means harnessing the support of co-workers and subordinates, empowering teams, and building networks of allies to change their organizations. Simmons College/03.05 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 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 Tomoyo Nonaka, CEO, Sanyo first woman
CEO of a major electronics company in Japan (FT/07.06.05) U.S.A. Economic Story #1: 10.6M To be a leader in
consumer products, its critical to have leaders who represent the population we serve. Steve Reinemund/PepsiCo Society is based on male standards with women seen
as anomalies deviating from the male norm. Bi Puvaneu, Institute for Future Studies (Stockholm) Women who seek to be equal with men lack ambition.
Timothy Leary Now and in the future, the teams led by the most moms win. The new model still demands they have leadership DNA, but it also embraces a kindler, gentler, more confident version of the old model; a big heart and a strong character are now as important as being a strong person. Leaders who only have the
hard skills simply arent suited for todays business climate. Many of these types are still running companies, but the tide is turning and their days are numbered. As everyone is well aware, company populations are going to become more rather than less diverse, companies will be dealing with more rather than fewer changes, and the pace is going to quicken even further. As a result, leaders must become much more efficient at managing chaos and much more competent at dealing with the human side. Overall, they must possess the interpersonal skills and character to adapt to both new realities.
Moe Grzelakowski, Maternal Trends in the Business World (Mother Leads Best: 50 Women Who Are Changing the Way Organizations Define Leadership) On MBAs Men Are from Mars and Women from Venus: Women MBA graduates make better managers as they gain intrinsic benefits such as confidence, credibility and assertiveness, job satisfaction and interpersonal skills. This makes them more productive. Men, however are more
blinkered and see their MBA only as a way to gain status and pay. The Times (London), on research at Brunel University/01.20.2005 Childrearing Skills of Particular Value to Organizational Leadership: *Selflessness *Confidence *Humility *Groundedness
*Honesty Moe Grzelakowski, Maternal Trends in the Business World (Mother Leads Best: 50 Women Who Are Changing the Way Organizations Define Leadership) Parting Thoughts TPs BakersDozen Commandments: Tech to Top 1. Enthusiasm, Optimism and Energy carry the day.
2. She who delivers the Best Projects wins. (Be-Do.) (Your inherent advantages enhance the odds of delivering ladle dropper projects. USE THEM.) 3. There are sympathizers. FIND THEM. (Make your own McKinsey.) 4. Indirection rules; frontal attacks are for boneheads. (My mission is that of a molemy existence only to be known by upheavals. John Fisher)
5. Accept a Lateral Move to get X-functional experience. (!!!!!!!!!!!!!!!!!!!!) 6. Take a crappy line job whenever its offered! (Theres no such thing as a crappy line job!) TPs BakersDozen Commandments: Tech to Top 7. Understand the Soft New Value-added Equation and Master/Exploit it. 8. DO GREAT THINGS FOR CUSTOMERS! (Its the best form of protection from idiots!)
9. Always Champion Change and find a Protector! 10. Life (SUCCESS) = Mastery of Sales & Politics. (Believe it!) 11. Get involved in Recruiting and Development Activities! (Were all in HR.) (Find Radical Young Women and become their Champion.) TPs BakersDozen Commandments: Tech to Top
12. If it aint working, get the hell out. (What about starting your own business?) 13. Youve got the Right Stuff: Use it. Exploit it. Dont hide it under a bushel. GO WHERE YOU ARE APPPRECIATED. 20. Re-imagine Excellence III: New Education for
R-World. Every time I pass a jailhouse or a school, I feel sorry for the people inside. Jimmy Breslin, on summer school in NYC [If they havent learned in the winter, what are they going to remember from days when they should be swimming?]
The main crisis in school today is irrelevance. Daniel Pink, Free Agent Nation Our schools are not teaching people how to think. Thomas Alva Edison
It is nothing short of a miracle that modern methods of instruction have not yet entirely strangled the holy curiosity of inquiry. Albert Einstein The last few decades have belonged to a certain kind of person with a certain kind of mindcomputer programmers who could crank code, lawyers who could craft contracts, MBAs who could
crunch numbers. But the keys to the kingdom are changing The future belongs to a very different kind of person with a very different kind of mind creators and empathizers, pattern recognizers and meaning makers. These peopleartists, inventors, designers, storytellers, caregivers, consolers, big picture thinkerswill now reap societys richest rewards and share its greatest joys. Dan Pink, A Whole New Mind
hands. The last few decades have belonged to a certain kind of person with a certain kind of mindcomputer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers. But the keys to the kingdom are changing The future belongs to a very different kind of person with a very different kind of mind
creators and empathizers, pattern recognizers and meaning makers. These peopleartists, inventors, designers, storytellers, caregivers, consolers, big picture thinkerswill now reap societys richest rewards and share its greatest joys. Dan Pink, A Whole New Mind hands. Left-brain style thinking used to be the
driver, and right-brain style thinking the passenger. Now R-Directed Thinking is suddenly grabbing the wheel, stepping on the gas, and determining where were going and how were going to get there. L-Directed aptitudesthe kind measured by the SAT and employed by CPAsare still necessary. But theyre no longer sufficient. Dan Pink, A Whole New Mind
L-Directed Thinking: sequential, literal, functional, textual, analytic to R-Directed Thinking: simultaneous, metaphorical, aesthetic, contextual, synthetic Source: Dan Pink/A Whole New Mind
Future CEOs May Need to Have Broad LiberalArts Foundation wsj.com/04.05: Hard is soft. Soft is hard. J. D. Rockefellers General Education Board
In our dreams people yield themselves with perfect docility to our molding hands. The task is simple. (1915): 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. Jordan Ayan, AHA! grade in art at such a young age? How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass 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 was participating in the suppression of creative genius. Source: Gordon MacKenzie,Orbiting the Giant Hairball:A Corporate Fools Guide to Surviving with Grace Our education system is a
second-rate, factory-style organization, pumping out obsolete information in obsolete ways. [Schools] are simply not connected to the future of the kids theyre responsible for. Alvin Toffler, Business 2.0 (09.00) Teach To Test? Whatever be the qualifications of your tutors, your
improvement must chiefly depend on yourselves. They cannot think or labor for you, they can only put you in the best way of thinking or laboring for yourselves. If therefore you get knowledge you must acquire it by your own industry. You must form all conclusions and all maxims for yourselves, from premises and data collected and considered by yourself. And it is the great object of [our educational institutions] to remove every bias the mind and to give the greatest
scope for true freedom of thinking. The renowned scientist Joseph Priestly. Date: might be under, 1794. Occasion: speech at the dedication of New College, London. TomResolution2005 (full year): Every project, small or large, this year will have to answer the question, Does this change the world? HP ran a banner ad, HAVE YOU CHANGED CIVILIZATION TODAY? Ill make that the first &
last question I ask myself each day! TomResolution2005 (within the next 10 minutes): I will be hall monitor for my attitude concerning each & every human contact I have this year, starting IMMEDIATELY. Do I exude Passion & Optimism & Connection of the sort that invariably engages others? (Hint: This applies as much to the 30-second exchange I have with a checkout clerk at Shaws grocery in Manchester VT as it does in a speech to very senior execs in Zurich on January 11.)
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 school-related evaluations are poor predictors of economic success, Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of
most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on. Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins My education was a prolonged and concerted attack on my individuality. Neil Crofts, Authentic
Survey finds that only 20% of 1,500 companies see individual drive as a desirable trait Source: Fortune/Ask Annie/11.29.2004
20A. Re-imagine Excellence IV: New Business Education for C*-World. (*C = Crazy) New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1
(Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm)
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 Research by Thomas Lockwood
The MFA is the new MBA. Dan Pink, A Whole New Mind Human creativity is the ultimate economic resource. Richard Florida,
The Rise of the Creative Class 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) Fact: Last 4 Deans Finance, Economics, Accounting, Finance. Query: WILL THERE EVER BE ONE FROM THE TOP LINE SIDE: INNOVATION (Ha, Ha), ENTREPRENEURSHIP, MARKETING, SALES (Ha Ha)? OR
THE PEOPLE SIDE: HR? Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press The winners in business have always played hardball. Unleash massive and overwhelming force. Exploit anomalies. Threaten your competitors profit sanctuaries. Entice your competitor into retreat. Approximately 640 Index entries: Customer/s (service,
retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0. New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1
(Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm)
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, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]
New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate)
DE (Doctor of Enthusiasm) Strategy meetings held once or twice a year to Strategy meetings needed several times a week Source: New York Times on Meg Whitman/eBay
New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate)
DE (Doctor of Enthusiasm) Have you changed civilization today? Source: HP banner ad New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1
(Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm)
New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate)
DE (Doctor of Enthusiasm) 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 New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done
without Certificate) DE (Doctor of Enthusiasm) 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 Exec Ed! (generic, alliances with corporations, alliances with other biz schools, alliances with other colleges on campus, entrepreneurs/small biz,
unconventional financing) Part-time! Off-campus! Web!!!!!!!! (courses, recruitment, lifelong networking, ) Women!!!!!!!!! Diversity! Unconventional sources! Unconventional evaluations! (1-ton cookie) (students & faculty)
Unconventional placement! International (Gartens mergers?) Curriculum Flip Noble Bill This is not to denigrate emphasis on leadership, entrepreneurship,
management and global business WFS Source: Brave New World, Bold New B-School/ Tim Westerbeck/BizEd/08.04 Change focus: Coping with (mastering) corporate life to mastering Brand You management (Corporation
to Individual?) Who wants to be a master of ADMINISTRAT ION? Why do only the service academies teach leadership as
a rigorous discipline worthy of study and experiential learning? (Is there much difference between a Company Commander and a Department Head?)* *Best MBA: USNA
* You are in the catbird seat! (Dont blow it.) * Theres no time to waste! * Continuing Ed (Career Ed) rules! * Emphasize Certificates over Degrees. * Train for a Brand You World, not a corporate world! * Teach/imbue creativity, independence, risk taking, small business skills, life in a value-adding PSF/Professional Service Firm. * Turn Project Management into a major educational focus. (Career Success = Portfolio of WOW Projects)
* Focus on Small biz/Women-owned businesses(10.6M!). * Create new Co-partnering corporate models. * Let 100 schools contend! (We need new models!) * D-school (and other mixed models) * Its R&D, stupid! (Become Industry Change Agentse.g. Healthcare.) * The Web is it! * Create communities of learning/Invent new modes of outreach/ team learning. * Measure every student contact by the Scintillating Experience (Cirque du Soleil) Standard!
* Under-promise, Over-deliver! Big Idea/Meta-Idea/Premier Engine of Value Added (1) The Talent: Best Roster of Entrepreneurial-minded Brand Yous. (2) The (Virtual) Organization: Internal or External PSF/Professional Service Firm working with Best Anywhere = Engine of Value Added through the Application of
Creative Intellectual Capital (3) The Work Product: Game Changer WOW Projects VII. Re-imagine Managing: BRAND INSIDE. A PEERLESS BRAND INSIDE: THE NEW
BASIS FOR AN IMPERATIVE VALUE-ADDED REVOLUTION 21. Re-imagine the Brand Promise: The Brand INSIDE Obsession.
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. [Yet] 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 The New Enterprise Value-Added Equation/Mark2005 (1) 100% WOW PROJECTS (New Org DNA/The Work) + (2) Incredible TALENT Transformed into (3) Entrepreneurial BRAND YOUs and
(4) Launched on Awesome QUESTS = (5) Internal Rockin PSFs (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from Superior Products & Services to ENCOMPASSING SOLUTIONS & GAME-CHANGING CLIENT SUCCESS
Big Idea/Meta-Idea/Premier Engine of Value Added (1) The Talent: Best Roster of Entrepreneurial-minded Brand Yous. (2) The (Virtual) Organization: Internal or External PSF/Professional Service Firm working with Best Anywhere = Engine of Value Added through the Application of Creative Intellectual Capital (3) The Work Product: Game Changer
WOW Projects 22. Re-imagine Tomorrows Organizations: Itinerant Potential Machines. It is not the strongest
of the species that survives, nor the most intelligent, but the one most responsive to change. Charles Darwin (courtesy HP) I wanted GE to operate with the speed, informality, and open communication of a corner store. Corner stores often have strategy
rigtht. With their limited resources, they have to rely on laser-like focus on doing one thing very well. Jack Welch/Fortune/04.05 TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal if youre stretching. Want to make their bones in the revolution. Love the new
technologies. Well rewarded. Dont plan to be around 10 years from now. TALENT POOL PLUS. Seek out and work with worlds best as needed (its often needed). We aim to change the world, and we need gifted colleagueswho well may not be on our payroll. BRASSY-BUT-GROUNDED-LEADERSHIP. Say I
dont knowand then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENT but dont expect the co. to be around forever. Will scrap pet projects, and change course 180 degreesand take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON ME TOO PRODUCTS AND PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) Visionary leaders matched by leaders with shrewd business sense: HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA? Appreciate market creation as much as or more than market share growth. ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAYS VOLATILE WORLD, FROM THE
NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Case. Etc.) ALLIANCE MANIACS. Dont assume that the best resides within. WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE SUPPLY CHAIN TO THE OTHER. Including vendors and consultants and
especially PIONEERING CUSTOMERS who will pull us into the future. TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all outsiders, on the Internet at Internet speed. Reluctant to work with those who dont share this (radical) vision. POTENTIAL MACHINES-ORGANISMS. Dont
know whats coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own way of doing things. 23. Re-imagine Excellence: X05 Walgree ns
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 And the Winner is 1. Audacity of Vision 2. Innovation/R&D/Design 3. Talent Acquisition & Development
4. Resultant Experience 5. Strategic Alliances 6. Operations 7. Financial Management 8. Overall/Sustaining Excellence 9. Wow! 10. Lovemark! Cirque du Soleil!
X04 Cirque du Soleil Mollies Infosys FBR/Friedman Billings Ramsey London Drugs Build-A-Bear Griffin Health Services/Planetree Alliance ... The Met/Big Picture schools Progressive Commerce Bank Whole Foods Apple Kevin Roberts Richard Branson (HSM/WSB/CR/4S*)
*My partners: Washington Speakers Bureau, HSM, Canyon Ranch, Four Seasons Cirque du Soleil ! Cirque du Soleil: Talent (12 full-time scouts, database of 20,000). R&D (40% of profits; 2X avg corp). Controls (shows are
profit centers; partners like Disney offset costs; $100M on $500M). Scarcity builds buzz/ brand (1 new show per year. People tell me 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
Cirque du Soleil *$500M-$600M revenue *#22 Interbrand/brand impact (>Microsoft, Disney, VW, McDonalds) *Every time we come to a comfort zone, we will find a way out (Daniel Lamarre/President) *No Cloning! *Reinvent the brand with EACH new show (max 1/year) *70% of profits into R&D!
*A typical day at the office for me begins by asking, What is impossible that I am going to do today? (Daniel Lamarre) *No deal until creative challenge (no matter $$ on the table) *Diverse creative teams! (Dont come out until youve done something great.) *Recruit the near-great (not prima donnas) (crazy interviews) Source: Fast Company/07.05 Mollie s
Infosys ! Infosys/Planet-warping Aspirations By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. However, creating a new business
innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world
operates and how value will be created in the future. Narayana Murthy, chairmans letter, Infosys Annual Report 2003 +49%/profits +52%/revenue Source: WSJ/10.13.2004/Infosys 2nd-Period Profit Rose Amid Demand for Outsourcing FBR
! I Borrowed Your Watch: Heres What Time It Is Make a Difference Add Exceptional Value Enduring Relationships with Companies that Have the Potential to Be Great After-market Performance Focus/Strong Sectoral Approach Focus/Underserved Middle Market/Mid-cap Cos Dramatic Difference
Research Roots Research Investment Unique Analytic Process Highly Disciplined Fundamental Intrinsic Value Analysis Partnership Culture Mutual Support Enthusiasm Make a Difference D.C. as D.C. D.C. as not Wall Street
Visibility/Tell Story/Brand FBR: Fundamental Intrinsic Value Analysis Focus (You know what youre doing) Difference (You know how youre doing it) Culture
(You understand the roots) London Drugs ! At London Drugs, everyone cares about
everything. Wynne Powell London Drugs *Each major department a category killer (pharmacy, computers, photo-photo finishing, cosmetics) *Service added/ Experience (e.g., consultation booths for pharmaceutical Clients)
*Brilliant, eye-popping design-merchandising *Price point: peanuts to super-premium *Massive training, very low staff t/o *Big-bet experimentation-innovation *Locales begging for LD *Financials to die for *IS/IT/SC pioneers (compared favorably to Wal*Marts supplychain management; exquisite vendor-partner programs) *Effectively deflected Wal*Mart incursion *Philosophy: fun, enthusiasm, innovation, commitment, care, talent development
Build-ABear! Build-A-Bear * 1997 to 2004: $0 to $300M * Maxine Clark/CEO (25 yrs May Dept Stores) * Build-A-Bear Workshops * Engagement! (Where Best Friends Are Made) * Theater! * http://www.buildabear.com/buildaparty
Best Web Site? buildabear.com Griffin Health Services Corporation/ Griffin Hospital/ Planetree
Alliance ! Planetree is about human beings caring for other human beings. Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Ladies and gentlemen serving ladies and gentlemen4S credo)
It was the goal of the Planetree Unit to help patients not only get well faster but also to stay well longer. Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel Those of us working in healthcare have an obligation to be of service in this world, to be bringers of light and
hope. Our work is spiritual by its nature, as the Planetree model has acknowledged for decades. Our definition of spirituality is coming into a right relationship with all that is, establishing a loving, nurturing, caring relationship. Planetrees has been to refocus our attention on the power of relationships, and, in particular, the mind-body-spirit relationship essential to healing. It has opened a door that will never be closed. Leland Kaiser, Holistic Hospitals Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick
Charmel The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The Importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing
6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel Big Picture
schools/ The Met ! Engage the kids around their passions.
Dennis Littky/ The Met-Big Picture The Real Goals of Education/Dennis Littky/The Big Picture *Be lifelong learners *Be passionate *Be ready to take risks *Be able to problem solve and think critically *Be able to look at things differently
*Be able to work independently and with others *Be creative *Care and want to give back to their community *Persevere *Have integrity and self-respect *Have moral courage *Be able to use the world around them well *Speak well, write well, read well, and work well with numbers *AND TRULY ENJOY THEIR LIFE AND WORK
EBF* to EBI** * Education By Fiat ** Education By Interest Progressive !
Progressive Is * [Peter] Lewis has created an organization filled with sharp, type-A personalities who are encouraged to take riskseven if that sometimes leads to mistakes. * One thing that weve noticed is that theyve always been very good at avoiding denial. They react quickly to changes in the marketplace.Keith Trauner/portfolio manager * When four successive hurricanes hit Florida and neighboring states in August and September, Progressive sent more than
1,000 claims adjusters to the Southeast. Result: 80% of 21,000 filed claims had been paid by mid-October, an impressive figure. This pleased policy holders and probably helped Progressive because delays in claims payments typically mean higher costs. Source: Barrons/ Polished Performer: The Car Insurance Games Best Managers Have Put Progressive in the Fast Lane/11.01.04 We dont sell insurance
We sell speed. anymore. Peter Lewis, Progressive Commerce Bank! Commerce Bank:
From Service to Experience 7X. 730A800P. F12A.* *93-03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a. Thesaurus of WOW! They hate it if you call them bankers. They love it, on the other hand, when you ask to see their #sstupendous. They are Commerce Bank. These absurdly fast growing, insanely profitable retailers, rewriting the rules of East Coast retail banking, sent me a copy of their booklet, Traditions. It explicates their
Wow the Customer Philosophy. At the end theres A Collection of Commerce Lingo. I wont define (use your imagination), but simply offer a small sample: Fans, Not Customers. Say YES 1 to say YES, 2 to say NO. (A staffer has to get a supervisors approval to say no to anything.) Recover!!! To Err Is Human; To Recover Is Devine. Leave Em Speechless. Positive Behavior. Positive Language. Kill A Stupid Rule. (Get cash rewards for exposing dumb internal rules that impede our ability to WOW!) Make the WOW! Answer Guide
Your Best Friend. Buzz Bee. CommerceWOW!Zone. (A K-12 financial education program.) Doctor WOW! Ten-Minute Principle. (Stores open 10 minutes before posted hours, stay open 10 minutes after posted hoursand the hours, such as open 7 days a week, are already incredibly generous & tradition-shattering.) Wall of WOW! WOW! Awards. (The annual recognition ceremonyRadio City Music Hall, with the Rockettes, in 05.) WOW! Patrol. WOW! Spotlight. WOW Van. WOW Wiz. (A service superstar.) Etc.
The Kevin & Richard Show! Kevin Roberts Credo 1. Ready. Fire! Aim. 2. 3. 4. 5.
6. 7. 8. 9. If it aint broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way!
Spread confusion. Ditch your office. 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 on Branson/10.03 24. Re-imagine Managing for Excellence
Five Myths About Changing Behavior *Crisis is a powerful impetus for change *Change is motivated by fear *The facts will set us free *Small, gradual changes are always easier to make and sustain *We cant change because our brains become hasrdwired early in life Source: Fast Company/05.2005
Benchmarking? Try the Corner Deli or the Local Hairdresser! Secret Service: Hidden Systems that Deliver Unforgettable Service/John DiJulius/John Roberts Hair Studio & Spa. The Fantastic Hairdresser/former London hairdresser Alan Austin-Smith. Zingermans Guide to Giving Great Service/Zingermans co-founder Ari Weinzweig/Ann Arbor MI deli/Mission statement: We share the Zingermans experience selling
food that makes you happy, giving service that makes you smilein passionate pursuit of our mission, showing love and caring in all our actions to enrich as many lives as we possibly can. (Dont you wish your bank or phone company or car dealer would live byor even vaguely imagine living bysuch a Credo?) Incentives that work: Clear/ unequivocal. Huge consequences. Different from now. Stable (for a few
years). Stand out (1 of 1). Giant aspirations (B.H.A.G.) Basis for deep dip promotion/s. What Gets Measured/ Obsessed About Gets Done Roger Milliken Roger Enrico Bill Creech Richard Haass
Jack Welch Donald Kennedy Freddie Mac/Fannie Mae Monkeys cant live in midair! Bob Townsend
Don Kennedy/ Stanford: from quantity (raw #) to quality (top 3) Carlsberg: Takeaways Encourage risk-taking: Hot language/WOW! Jaywalk, foot-wiggle: Energy & Enthusiasm (I know it when I see it) Make your bones away from home: PepsiCo v Coke; Citi v Chase Should be SURPRISED at every meeting
Be-Do (+ Leaps) I do people Absurdly smart people (Gates) Eval = Time ($ X 25) You = Calendar Hire better than me C.I. = Disaster Charles Handy on the alchemists: Passion
was what drove these people, passion for their product or their cause. If you care enough, you will find out what you need to know. Or you will experiment and not worry if the experiment goes wrong. Passion as the secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. Sadly, passion is not a word often heard in the elephant organizations, nor in schools, where it can seem disruptive.
Five Myths About Changing Behavior *Crisis is a powerful impetus for change *Change is motivated by fear *The facts will set us free *Small, gradual changes are always easier to make and sustain *We cant change because our brains become hasrdwired early in life Source: Fast Company/05.2005
Takeaways Encourage risk-taking: Hot language/WOW! Jaywalk, foot-wiggle: Energy & Enthusiasm (I know it when I see it) Make your bones away from home: PepsiCo v Coke; Citi v Chase Should be SURPRISED at every meeting Be-Do (+ Leaps) I do people Absurdly smart people (Gates)
Eval = Time ($ X 25) You = Calendar Hire better than me C.I. = Disaster Headhunter Excellence? (CEO Performance vs S&P 500) Korn Ferry/Tom Neff: +1.1% Heidrick & Struggles/ Gerry Roche: -5.2%
Lincoln/The Master of the Game/ Doris Kearns Goodwin *Empathy *Humor *Magnanimity *Generosity of Spirit *Perspective *Self-control
*Sense of Balance *A social Conscience Steps: One busboy will become a Waiter. One waiter will become a Maitre D. One Maitre D will become a Restaurateur. One restaurateur will become World Famous. Message: IT STARTS BY BECOMING
THE BEST BUSBOY YOU CAN BE! barns burnt down now I can see the moon Mashahide/Zen poet Do one thing every day that scares you. Eleanor
Roosevelt The Ten Faces of Innovation/Tom Kelley *The Anthropologist. Master of human behavior gets the user. *The Experimenter. Mr/Ms Fast Prototyper. *The Cross-pollinator. Explores odd connections. *The Hurdler. Master remover of B.S. roadblocks. *The Collaborator. Brings intriguing combinations of people together. *The Director. Brings out the creative best from an odd mix of talents. *The Experience Architect. Turns products into performances.
*The Set Designer. Creates fabulous office environments that foster constant innovation. *The Caregiver. Anticipates customer needs like a magician. *The Storyteller. Creates narratives that capture the spirit of the group and its products/services/experiences. WHAT GETS MEASURED GETS DONE: % students (MBA); % students (Continuing Ed); %
students (Ph.D.). % faculty; % tenured faculty. % Advisory Board. % senior administrators. % cases focusing on Women managers. Etc. TPs Three Pieces of Advice for Entrepreneurs: Niche/niche customer/Dramatic
Difference; work like hell nd on a 2 act; good CFO from the get go. If you dont listen, you dont sell anything. Carolyn Marland/MD/Guardian Group
TPs Three Pieces of Advice for Entrepreneurs: Niche/niche customer/Dramatic Difference; work like hell nd on a 2 act; good CFO from the get go.
GEN Powells Two Cardinal Success Tips for Managers: (1) Take care of your troops; (2) focus on the job at hand, not the next job/ advancement. Source: Pat Williams
TPs Kan-ed Commandments *NOT OPTIONAL! *Circa 2005: Small is beautiful! (HC, the Web & NY State) *Experiment! (One best way is a snare & a delusion!) *Applaud winners *BUILD OFF THE POSITIVE! *Build off winners (a coalition of the willing), dont fret about the reluctant remnant surround em. *Appoint a CMO!
*Electronic sharing! (Every form imaginable) *The Network is the organization! *LISTEN UP! (Avoid hierarchy) *Physical sharing! (Like this event) TPs Kan-ed Commandments *Applaud excellent failures! *Scrap duds ASAP! *Do O.O.D.A.!
*Let a thousand flowers bloom, let a hundred schools contend! *Become a designated playpen! *Super-cool talent! (The 10,000X Factor) *Are they weird enough? *Super-cool vendors! (Usually small) *Avoid premature tech lock-in! (Uniformity is the archenemy of innovation!) *The children shall show us the way! *YOU CANT OVERDO DISTANCE LEARNING!!!
*NOT OPTIONAL! First Strategic Objective in a Major Change/Transformation CHANGE YOURSELF! (in a Program:
measurable way) What I Learned HWBjr: Excellence, Accountability, Initiative, K.I.S.S., Leader Love Dick: Empowerment, Entrepreneurship, Challenge, Execution (Project > Paper), Accountability, MBWA, K.I.S.S., Fanatic Customer-centrism (Customer>Command, Marines>Regiment), Leader Love, Output, Do>Be
Nameless: Tangible vs Palpable (Bureaucracy, Control, Tight Leashes, Command-centric, Demoralization, Paper > Project, Product = Paper, K.I.C.S.) What I Learned Ben: Decency, Soft Power, Fanatic Customercentrism (Do>Be) Walter: Fanatic Mission-centrism, Soft Power, Relationship-management, Execution, Accountability, Early to Bed
Bob: Pos>Neg/Recognition, K.I.S.S., The Way of the Demo (Execution), Hero-building, Mission-centrism, Do>Be Bill: De-centralization, Recognition, Supportstaff Centrism, Measurement (K.I.S.S.), Soft Power (Paint n Pride), Rapid Culture Change I wasnt bowled over by [David Boies] intelligence What impressed me was that when he asked a question, he waited for an answer. He not
only listened, he made me feel like I was the only person in the room. Lawyer Kevin _____, on his first, inadvertent meeting with David Boies, from Marshall Goldsmith, The One Skill That Separates, Fast Company, 07.05 wont do us a
lick of good. Only Connect: Selection Best Person Track Record People Development People will follow into hell Fit Attitude
Enthusiasm Energy Sense of Humor Do vs Be Action Bias Try It Now Commitment to Change Proclivity for risk-taking Contrarian Political Skills
Salesmanship Curiosity Obstreperousness Value Consistency Impeccable Integrity Hard Worker [Other] admirals more frightened of losing than anxious to win
SP: But can you turn a defensive player into an offensive player? Yes! TP: Work with him/her to re-frame their principal project to the point that the ego is engaged and it becomes a life compulsion.
* * If you and I had $150K in the bank and on the line and the TP & UA Ops Manager: National service? Who knows? But we believe that every would-be leader should have waited table for at least two years! * *Customer service, make-each-Customer the Absolute Center of Attention at all times, pursue repeat business, take the
blame from one and all, provision of scintillating experience, serve many masters (Client, Maitre d, chef, busboy, owner, etc), hustle but exude calm/grace, multi-task, sunny attitude no matter how much shit has hit the fan, etc. I have always believed that the purpose of the corporation is to be a blessing to the
employees. Boyd Clarke GH: Get better vs Get different A focus on cost-cutting and efficiency has
helped many organizations weather the downturn, but this approach will ultimately Only the constant pursuit of innovation can ensure long-term success. Daniel render them obsolete. Muzyka, Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04) Guiding Tenets/Daily Fare Innovate! Re-imagine! Adapt! Prepare! Build a School on top of
a school (The Parallel Universe Strategy) Hard is soft. Soft is hard. This I Believe: The 60 TIBs Tom Peters/08.2005
60TIBs 1. Technicolor rules 2. Audacity matters! 3. Revolution now! 4. Question authority! (And hire disrespectful people 5. Disorganization wins! (Love the mess!) 6. Think 3M: Markets Matter Most. (Only extreme competition staves off staleness.) 7. Three hearty cheers for weirdos 8. Message 2003: Technology change (info-science,
bio-science) is in its infancy. (Greatest understatement: We aint seen nothin yet!) 9. Everything is up for grabs! Volatility is thy name! (Forever. And ever.) Re-imagine ... or perish. 10. Big Stinks. (Mostly.) 60TIBs 11. Permanence is a snare and a delusion. (Forget built to last. Its yesterdays idea, if that.) 12. Kaizen (Continuous Improvement) is ... Very Dangerous
Stuff. 13. Destruction rules! 14. Forget it! (Message: Learning = Easy. Forgetting = Nigh-on-impossible.) 15. Innovation = Easy. (True.) (Message: Hang out with Freaks!) 16. Boring begets boring. (Cool begets cool.) 17. Think Portfolio. We are all VCs.* (*Venture Capitalists.) 18. Perception is all there is. (Insiders ... always ... overestimate the radicalism of what theyre up to.) 19. Action ... ALWAYS ... takes precedence.
20. He who makes the Quickest & Coolest Prototypes Reigns! (Think: Demos. Stories. Heroes.) 60TIBs 21. Haste makes waste. (So ... go waste!) 22. Screw-ups are ... The ... Mark of Excellence. (Corollary: Do it right the first time is an ... Obscenity.) 23. Play hard! Right 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 the gold.) 26. Diversitys hour is now! 27. S-H-E is the best leader. 28. Marketing mantra: Pocket Trillion$$$. Embrace the Big Two: (1) She is the customer! (2) Boomers/Geezers have all the loot! 29. Re-boot health care. 30. Q: What are we selling? A: Experiences and solutions, far more than top quality and satisfaction. (Message: the traditional value-added equation is being set on its ear.)
60TIBs 31. Design = New Seat of the Soul. 32. Branding is for ... EVERYONE. Whoever has ... THE BEST STORY ... takes home the most marbles. 33. Dramatic Difference = Only Difference worthy of the name. 34. Words matter. (A lot!) 35. What matters is ... Stuff That Matters. 36. eALL. (IS/IT: Half-way = No-way.) 37. DREAM! Dream ... BIG! Dream ... ENORMOUS!
Dream GARGANTUAN! (This is an XXXXL Time!) 38. Thanks Mike! 39. There is (Perhaps?!) only ... One Big Issue. Crappy X-Functional Communications. 40. Stop doing dumb stuff. (Systematize the process of un-dumbing.) 60TIBs 41. Beautiful systems ... are ... b-e-a-u-t-i-f-u-l! 42. The ... WHITE-COLLAR REVOLUTION ... will ... Devour ...
Everything ... in Its Path. 43. Take charge of your destiny. (No option.) It is a Brand New, Brand You World. (Distinct or ... Extinct.) 44. Powerlessness is a State of Mind! (Think King. Think Gandhi. Think de Gaulle.) 45. Pursue ... Adventures ... in every task. 46. Excellence is a state of mind. (Excellence takes but a ... Minute. No baloney.) 47. Show up! (If you care, you are there.) 48. Your calendar knows all. (You = Your calendar.)
49. Life Is Sales. (The rest is details.) 50. Boss mantra No. 1: I Dont Know (I.D.K. = Ultimate Permission to Explore.) 60TIBs 51. Management Rule/Role No. 1: GET THE HELL OUT OF THE WAY. (Manager = Hurdle Removal Professional.) 52. Avoid the epitaph from hell! Namely: Joe J. Jones 1942-2005
He would have done Some really cool stuff But ... His boss wouldnt let him. 53. Change takes however long you think it takes. 54. Respect! 60TIBs 55. Thank you trumps all! 56. Integrity matters! (Integrity = Credibility.)
57. Soft is Hard. Hard is Soft. (Numbers are soft. People are hard.) 58. Try sunny! Dispense enthusiasm! 59. Fun ... is not a ... Four-Letter Word (so, too, Joy). 60. Grace. VIII. NEW BUSINESS. NEW LEADERSHIP. 22. Re-imagine Leadership
for Totally Screwed-Up Times: The Passion Imperative. Create a Cause !
Create a cause, not a business. G.H.: If you want to build a ship, dont drum up people together to collect wood and dont assign
them tasks and work, but rather teach them to long for the sea. Antoine de Saint-Exupery 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: the wildest
chimera of a moonstruck mind The Federalist on TJs Louisiana Purchase In the end, management doesnt
change culture. Management invites the workforce itself to change the culture. Lou Gerstner Resilience Simplicity Authenticity Ed Sims/Air New Zealand (Airline to Middle Earth)
Think Legacy! Management has a lot to do with answers. Leadership is a function of questions. And the first question Who do we intend to
be? Not What are we going to for a leader always is: do? but Who do we intend to be? Max De Pree, Herman Miller In 1933, Thomas J. Watson Sr. gave a speech at the Worlds Fair, World Peace through
We stood for something, right? World Trade. Sam Palmisano There was no question that whenever Larry Summers decided to step down
as president of Harvard, he would leave the university bigger, richer, more powerful, and more influential. The only question was whether he would leave it better. Richard Bradley, Harvard Rules 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. To win this race, Kerry needs to stop focusing on Election Day and start thinking about his would-be
What does he want his legacy to be? When presidencys last day. sixth-graders in the year 2108 read about the Kerry presidency, what does he want the one or
two sentences that accompany his photo to say? Kenneth Baer/Washington Post/092604 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? Good Is Good Business Bill George, Authentic Leadership: Rediscover the Secrets to Creating Lasting Value Sydney Harman, Mind Your Own Business: A
Maverick's Guide to Business, Leadership, and Life Max De Pree, Leadership Is an Art Ira Jackson and Jane Nelson, Profits with Principles I dont know what the hell were going to do, or how were going to do it, but Im damn clear that were going
to move beyond good projects and step up to the plate on fundamental change on the last 18 months of my watch. 3 star admiral, U S Navy, April 05 Trumpet an Exhilarating Story!
Leaders dont just make products and make decisions. Leaders make meaning. John Seely Brown A key perhaps the key to leadership is
the effective communication of a story. Howard Gardner/Leading Minds: An Anatomy of Leadership Language Power! the language we
speak determines how we react to the world around us Diane Ackerman/ An Alchemy of Mind The essence of American presidential leadership, and the secret of presidential success, is storytelling. Evan Cornog, The Power
and the Story: How the Crafted Presidential Narrative Has Determined Political Success from George Washington to George W. Bush Scratch the surface in a Boardroom, and youll find were all cavemen with waiting for someone to tell us
a good story. briefcases Alan Kay, as reported by Dan Pink Leader Job 1
Paint Portraits of Excellence! An empire not of land, an empire of the mind Alexander the Great It is necessary for the
President to be the No. 1 actor. nations FDR It had been a scene that those in the room
would long remember. Washington had performed his role to perfection. It was not enough that a leader look the part; by Washingtons rules he must know how to act it John Adams would later describe Washington approvingly as one of the great actors of the age. with self-command and precision.
David McCullough, 1776 Make It a Grand Adventure! Ninety percent of what we call management
consists of making it difficult for people to get things done. Peter Drucker If you have ten thousand regulations you destroy all respect for law. WSC
I dont know. Quests! [Other] admirals more frightened of losing than anxious to win SP: But can you turn a defensive player into an offensive player?
Yes! TP: Work with him/her to re-frame their principal project to the point that the ego is engaged and it becomes a life compulsion. * * If you and I had $150K in the bank and on the line and the
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. Yes!!!!!!!!!!!!!!!!! free to do his or her absolute best allow its members
to discover their greatness. The final test of a leader is that he leaves behind him in other men the conviction and the will to carry on. Walter Lippmann
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 Reward excellent failures. Punish mediocre successes.
Phil Daniels, Sydney exec (and, de facto, Jack) Nobody can prevent you from choosing to be exceptional. Mark Sanborn, The Fred Factor To live is the rarest thing in the world. Most people exist, That is all.
Oscar Wilde Make your life itself a creative work of art. Mike Ray, The Highest Goal Never doubt that a small group of committed people
can change the world. Indeed it is the only thing that ever has. Margaret Mead Although I appreciate what Jim Collins was railing ategomaniacal leaders such as Al Chainsaw Dunlap, Dennis Shower Curtain Kozlowski, and Jeffrey Off Balance Sheet
Skillingthe most effective leaders are not self-effacing and humble. In fact, a powerful ego, defined as the need to stake grand claims, is one of their most defining characteristics (although, obviously, not the only one). Marcus Buckingham, The One Thing You Need to Know A: insecure, insensitive, opinionated, verbose,
compulsive, headstrong, belligerent, proud, and lacking in self-awareness and self-discipline. Q: the father of American capitalism Alexander Hamilton Source: Review in Strategy + Business/Winter 2004 of Ron Chernows Alexander Hamilton
Im looking for insane commitment. Twyla Tharp, The Creative Habit Insist on
Speed! Strategy meetings held once or twice a year to Strategy meetings needed several times a week Source: New York Times on Meg Whitman/eBay Read It Closely: We dont sell
We sell speed. insurance anymore. Peter Lewis, Progressive He who has the quickest O.O.D.A.
Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd Boyd At the heart of Boyds thinking is an idea labeled OODA Loops. OODA stands for the Observe-Orient-Decide-Act cycle. In short, the player with the quickest OODA Loops disorients the enemy to an extreme degree. In the world of aerial combat, for example,
the confused adversary subjected to an opponent with short OODA cycles often flies into the ground rather than becoming the victim of machine gun fire or a missile. Boyd is careful to distinguish between raw speed and maneuverability. In aerial dogfighting in Korea (Boyds incubator), Soviet MiGs flown by Chinese pilots were faster and could climb higher, but our F-86 had faster transientsit could change direction more quickly; hence our technically inferior craft (by conventional design standards) achieved a 10:1 kill ratio.
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) Maneuverists BOYD: The Fighter Pilot Who
Changed the Art of War (Robert Coram) Lead the Action Faction! 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 I used to think that the mark of a good businessman was to not make mistakes. But then I met a lot of successful businessmen and realized that the key to their success waqs they were willing to try a lot of things.
That also means being willing to make mistakes. Gordon Segal, CEO, Crate & Barrel A man approached JP Morgan, held up an envelope, and said, Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000. Sir, JP Morgan replied, I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you
ask. The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000. 1. Every morning, write a list
of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR 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 YOU HAVE TO DRILL! This is so simple it sounds stupid, but it is amazing how
you only find oil if you drill wells. few oil people really understand that You may think youre finding it when youre drawing maps and studying logs, but you have to drill.
I dont know what it is that makes an oil finder. But while I cant define it, I can generally recognize it when I see it. Mostly, its attitude. Focus. Intensity. It seems to be associated with a fierce desire to know everything, to rub your nose in every piece of information. And yet there is a playfulness about the expert finders. A sense of fun. Beware of the too serious man. Source:The Hunters, by John Masters, Canadian O & G wildcatter Paranoia was nothing new in my life. You cant let it get in the way of work. The trick, as I was told as a trainee by what I then regarded as wise old instructors,
is to avoid getting into situations from which there is no escape. Always case the joint before you go in, always sit with your back to the wall, always make sure theres a back door. A majority of my classmates took this advice to heart and were not much good to themselves or to anyone else thereafter. In practice, you have to walk right in and sit right down. Sometimes getting out the back door involves breaking somebodys neck on a dark stairway. protagonist, from Old Boys by Charles McCarry (p192)
To Be somebody or to Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Dispense Enthusiasm! BZ: I am a
Dispenser of Enthusiasm! Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge Most important,
he upped the energy level at Motorola. Fortune on Ed Zander/08.05 A man without a smiling face must not open a shop.
Chinese Proverb* *Courtesy Tom Morris, The Art of Achievement James Woolsey, former CIA director: If youre enthusiastic about the things
youre working on, people will come ask you to do interesting things. [Feldstein] is like a pied piper. Marty infects everyone with his zeal for applied economics. Laurence
Kotlikof, Chairman, Economics Dept, Boston University [Economist Martin Feldstein] is a giant, not just because of his ideas, but because of his excitement about thee ideas themselves Brian Hall/Harvard/ Investors Business Daily/06.10.05
You must be the change you wish to see in the world. Gandhi To change minds effectively, leaders make particular use
of two tools: the stories that they tell and the lives that they lead. Howard Gardner, Changing Minds Charles Handy on the alchemists: Passion was what drove these people, passion for their product or their cause. If you
care enough, you will find out what you need to know. Or you will experiment and not worry if the experiment goes wrong. Passion as the secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. Sadly, passion is not a word often heard in the elephant organizations, nor in schools, where it can seem disruptive. The Nelson Bakers Dozen
1. Simple-clear scheme (Plan) (Not wildly imaginative) (Patton: A good plan executed with vigor right now tops a perfect plan executed next week.) 2. SOARING/BOLD/CLEAR/UNEQUIVOCAL/WORTHY/NOBLE/INSPIRING GOAL/MISSION/PURPOSE/QUEST 3. Conversation: Engagement of All Leaders 4. Leeway for Leaders: Select the Best/Dip Deep/Initiative demanded/Accountability swift/Micromanagement absent 5. LED BY LOVE (Lambert), NOT AUTHORITY (Identify with sailors!) 6. Instinct/Seize the Moment/Impetuosity (Boyds OODA Loops: React more quickly than opponent, destroy his world view)
7. VIGOR! (Zander: leader as Dispenser of Enthusiasm) 8. Peerless Basic Skills/Mastery of Craft (Seamanship) 9. Workaholic! (Duty first, second, and third) 10. LEAD BY CONFIDENT & DETERMINED & CONTINUOUS & VISIBLE EXAMPLE (In Harms Way) (Gandhi: You must be the change you wish to see in the world/ Giuliani: Show up!) 11. Genius (Transform the world to conform to their ideas, Triumph over rules) (Gandhi, Lee-Singapore) , not Greatness (Make the most of their world) 12. Luck! (Right time, right place; survivor) (Lucky Eagle vs Bold Eagle) 13. Others principal shortcoming: ADMIRALS MORE FRIGHTENED OF LOSING
THAN ANXIOUS TO WIN Source: Andrew Lambert, Nelson: Britannias God of War Nelsons Way: A Bakers Dozen 1. Simple scheme. 2. Noble purpose! 3. Engage others. 4. Find great talent, let it soar! 5. Lead by Love! 6. Trust your gut, not the focus group: Seize the Moment!
7. Vigor! 8. Master your craft. 9. Work harder than the next person. 10. Show the way, walk the talk, exude confidence! Start a Passion Epidemic! 11. Change the rules: Create your own game! 12. Shake of the pain, get back up off the ground, the timing may well be right tomorrow! (E.g., Get lucky!) 13. By hook or by crook, quash your fear of failure, savor your quirkiness and participate fully in the fray!
Source: Andrew Lambert, Nelson: Britannias God of War Fisherisms Do right and damn the odds. Stagnation is the curse of life. The best is the cheapest. Emotion can sway the world. Mad things come off. Haste in all things. Any fool can obey orders.
History is a record of exploded ideas. Life is phrases. Source: Jan Morris, Fishers Face, Or, Getting to Know the Admiral extraordinary arrogance, superciliousness, humor, kindness, effrontery
Jan Morris on Lord Admiral Jack Fisher, Fishers Face, Or, Getting to Know the Admiral We must have no tinkering! No pandering to sentiment! No regard for susceptibilities! We must be ruthless, relentless, and remorseless. Jan Morris, Fishers Face, Or, Getting to Know the Admiral
Free the Lunatic Within! You cant behave in a calm, rational manner. Youve got to be out there on the lunatic fringe.
Jack Welch Kevin Roberts Credo 1. Ready. Fire! Aim. 2. 3. 4.
5. 6. 7. 8. 9. If it aint broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure.
Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff. 10. Avoid moderation! Stay Hungry. Stay Foolish. Steve Jobs
If I had any epitaph that I would rather have more than any other, it would be to say disturbed the sleep of my generation. that I had
Adlai Stevenson 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 The future is disorder. A door like this has opened up five or six times since we got up on our hind legs. It is the best possible time to be alive, when almost everything you know is wrong. Valentine, the mathematician, in Arcadia,
by Tom Stoppard (courtesy David Wolfe) 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. Peter Drucker 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. Yes!!!!!!!!!!!!!!!!! free to do his or her absolute best allow its members to discover their
greatness. Nobody can prevent you from choosing to be exceptional. Mark Sanborn, The Fred Factor To live is the rarest thing in the world. Most people exist, That is all.
Oscar Wilde Make your life itself a creative work of art. Mike Ray, The Highest Goal 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.
Whoops: Jack didnt have a vision! 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 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) Talent Fanatic-Mentor (2) Creator-Visionary (3) Inspired Profit Mechanic. 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. The Leadership Dance. 8. Leaders SHOW UP! A body can
pretend to care, but they cant pretend to be there. Texas Bix Bender 9. Leaders LOVE the MESS!
If things seem under control, youre just not going fast enough. Mario Andretti 10. Leaders DO!
We have a strategic plan. Its called doing things. Herb Kelleher 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!) He who has the quickest O.O.D.A.
Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd A man approached JP Morgan, held up an envelope, and said, Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000. Sir, JP Morgan replied, I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you
ask. The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000. 1. Every morning, write a list
of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR 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 12. BUT Leaders Know When to Wait. Tex Schramm: The
too hard box! 13. Leaders Are Optimists. [Ronald Reagan] radiated an
almost transcendent happiness. Half-full Cups: Lou Cannon, George (08.2000) Hackneyed but none the less LEADERS SEE CUPS AS HALF
FULL. true: 14. Leaders DELIVER! It is no use saying We are
doing our best. You have got to succeed in doing what is 15. BUT Leaders Are Realists/Leaders Win Through LOGISTICS!
16. Leaders FOCUS! To Dont List
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 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)
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 23. Leaders Make BIG MISTAKES! Reward excellent failures. Punish mediocre successes.
Phil Daniels, Sydney exec (and, de facto, Jack) Create. 24. Leaders Know that THERES MORE TO LIFE THAN LINE EXTENSIONS. Leaders Love to CREATE NEW MARKETS.
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.
Legacy! Management has a lot to do with answers. Leadership is a function of questions. And the first question Who do we intend to be? Not What are we going to
for a leader always is: do? but Who do we intend to be? Max De Pree, Herman Miller 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? 26. Leaders Push Their W-a-y Up the Value-added/ Intellectual Capital
Chain Organizations 27. Leaders LOVE the New Technology! 28. Needed? Type IV Leadership:
Technology Dreamer-True Believer The Golden Leadership Quadrangle: (1) Talent Fanatic-Mentor (2) Creator-Visionary (3) Inspired Profit Mechanic (4) Technology DreamerTrue Believer
Talent. 29. When It Comes to TALENT Leaders Always Go Berserk! 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 31. Leaders Develop Leadership Tems that Look Like the Market Albertsons Gets It* Albertsons CEO Larry Johnston (a GE alum) on women in top slots: Women have insights into our customers that no manno matter
how bright, no matter how hard workingcan match. Thats important when 85 percent of all consumer buying decisions made in our stores are made by women. Retail analyst Burt Flickinger calls the absence of women in top slots, pre-Johnston, the companys tragic flaw. He adds, It was a bunch of old white guys making erroneous assumptions and erroneous conclusions about women and the multicultural consumers that make up the majority of Albertsons customers.
*Only large global corporation with over 50% women (6 of 11) on its Board Passion. 32. Leaders Sell PASSION!
Create a cause, not a business. G.H.: In the end, management doesnt change culture.
Management invites the workforce itself to change the culture. Lou Gerstner Resilience Simplicity Authenticity Ed Sims/Air New Zealand (Airline to Middle Earth)
33. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! BZ: I am a Dispenser of Enthusiasm!
Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge A man without a smiling face must not open a shop. Chinese Proverb*
*Courtesy Tom Morris, The Art of Achievement 34. Leaders Are in a Hurry Read It Closely: We dont sell We sell speed.
insurance anymore. Peter Lewis, Progressive 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.] The Job of Leading. 36. Leaders Know Its
ALL SALES ALL THE TIME. 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 39. Leaders Give RESPECT! Amen! What creates trust, in the
end, is the leaders manifest respect for the followers. Jim OToole, Leading Change 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]
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 43.
Leaders Are The Brand You must be the change you wish to see in the world.
Gandhi 44. Leaders GREAT STORY! Have a Leaders dont just make products and make decisions.
Leaders make meaning. John Seely Brown A key perhaps the key to leadership is the effective communication
of a story. Howard Gardner Leading Minds: An Anatomy of Leadership Leader Job 1 Paint Portraits of Excellence!
Introspection. 45. Leaders Enjoy Leading. Warren, I know you want to be president. But do you want to do president?
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 ones head, he/she shall never hear the unvarnished truth again!* The Word According to TP: (*Therefore, she/he needs one
faithful compatriot to lay it on with no jelly.) 48. Leaders Take Breaks. The End Game. 49. Leaders ???
: Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE. LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES 50. Leaders Know WHEN TO LEAVE! In Italy for 30 years under the Borgias they had warfare, terror, murder,
bloodshedthey produced Michelangelo, Leonardo da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they producethe cuckoo clock. Orson Welles, script for The Third Man If I had any epitaph that I would rather have more
than any other, it would be to say that I had disturbed the sleep of my generation. Adlai Stevenson In classical times when Cicero had finished speaking, the people said, How well he spoke, but when Demosthenes had
finished speaking, they said, Let us march. Adlai Stevenson Let us march
! Here lies the mighty gentleman who rose to such heights of valor that death itself did not triumph over his life with his death. He did not esteem the world; he was the frightening threat to the world, in this respect, for it was his great good fortune
to live a madman, and die sane. Epitaph, Don Quixote