Tom Peters How New Business Works: Rules for Re-invention 01.20.2003 If you dont like change, youre
going to like irrelevance even less. General Eric Shinseki, Chief of Staff, U. S. Army Sequenom/David Ewing Duncan/Wired11.02 Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification process. This, Im told, is the first time a
healthy human has ever been screened for the full gamut of genetic-disease markers. On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests. You cant look at humanity separate from machines; were so intertwined were almost the same species, and the difference is getting smaller.
There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate. Steve Case
IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. Al-Qaeda represents a new and profoundly dangerous kind of organizationone that might be called a virtual state. On September 11 a virtual state proved that modern societies are vulnerable as never before.Time/09.09.2002
The deadliest strength of Americas new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack.
Business as usual wont do it, he said. His answer is to develop swifter, more lethal ways to fight. Big institutions arent swift on their feet in adapting but rather ponderous and clumsy and slow. The New York Times/09.04.2002 From: To:
Weapon v. Weapon Org structure v. Org structure Our military structure today is essentially one
developed and designed by Napoleon. Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help
our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational Limits. In an era when terrorists use satellite
US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont talk to each other. phones and encrypted email,
Boston Globe (09.30.2001) Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether
to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys command and control) and working directly with the real players. The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a
secure network.Ned Desmond/Broadbands New Killer App/Business 2.0/ OCT2002 A Big Electronics Show Is All About Connections headline, New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX
NOKIA Connecting People SOS : Emergency
Agencies Often Unable to Talk to Each Other headline, p1, USA Today/11.20.2002 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) If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.Tom Stewart,
Business 2.0 The New Infantry Battalion/ New York Times/12.01.2002 Pentagons Urgent Search for Speed. 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities.
Find-to-hit: 45 minutes to 15 minutes in just one year. Erics Army Flat. Fast. Agile. Adaptable. Light But Lethal.
Brand You/ Talent/ I Am An ARMY Of One. Info-intense. Network-centric. The New Infantry Battalion/ New York Times/12.01.2002 Pentagons Urgent Search for Speed. 270 soldiers (1/3rd normal
complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities. Find-to-hit: 45 minutes to 15 minutes in just one year. Uncertainty: We dont know
when things will get back to normal. We no longer know what normal means. Ambiguity: I Believe
1. Change will accelerate. DRAMATICALLY. 2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS. (Business Health Care Politics War Education Fundamentals of Human Interaction.) 3. OPPORTUNITIES are matchless.
4. You are either ON THE BUS or OFF THE BUS. 5. I WANT TO PLAY! AND YOU? I. NEW BUSINESS. NEW CONTEXT.
1.All Bets Are Off. <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift 1800s: > prior 900 years 1900s: 1st 20 years > 1800s 2000: 10 years for paradigm shift
21st century: 1000X tech change than 20th century (the Singularity, a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history)
Ray Kurzweil Vernor Vinge/Mr. Singularity The transition time from human history to post-human singularity time, Vinge thinks, will be astonishingly shortmaybe one hundred hours from the first
moment of computer selfawareness to computer world conquest.Esquire/12.2002 We are at a pivotal point in history. We are at one of a half dozen turning points that have fundamentally changed the way societies are organized for governance. Philip Bobbitt, The Shield
of Achilles: War, Peace, and the Course of History Theres going to be a fundamental change in the global economy unlike anything we have had since the cavemen began bartering. Arnold Baker, Chief Economist, Sandia National Laboratories
NOW THATS B-I-G! The period 2000-2002 will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.
David Schneider & Grady Means, MetaCapitalism In 25 years, youll probably be able to get the sum total of all human knowledge on a personal device. Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T] [Barrons 11.13.2000] I genuinely believe we are living through the greatest intellectual moment in history. Matt Ridley, Genome
Doctors are faced with the very real threat of irrelevance in ten years. Youll go to a lab, have a blood sample drawn, and a readout of your genetic deficiencies will be producedalong with Doctors Orders for appropriate treatment; only there wont be any doctor. Leading Pediatric Cardiologist (11.2002)
Yo, Bioinformatics! Researchers say they have found a way to mate human cells with circuitry in a bionic chip The tiny device smaller and thinner than a strand of hair combines a healthy human cell with an electronic circuitry chip.
AP/AOL/02-00 Help! Theres nobody in the cockpit. In the future, will the airlines no longer need pilots? Grumman Global Hawk/ 24 hours/ Edwards to South Australia
Source: The Economist/12.21.2002 We are in a brawl with no rules. Paul Allaire Strategy meetings held once
or twice a year to Strategy meetings needed several times a week Source: New York Times on Meg Whitman/eBay 2. The Destruction Imperative.
It is generally much easier to kill an organization than change it substantially. Kevin Kelly, Out of Control C.E.O.
to C.D.O. Facing Crisis, Media Giants Scrounge for Fresh Strategies headline, P1, Wall Street Journal/ 01.14.2003
We must not only transform our armed forces but the Defense Department that serves them by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for
threats to emerge and be validated, but rather anticipates them before they appear and develops new capabilities to dissuade them and deter them. Donald Rumsfeld, Foreign Affairs Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 survivors underperformed the market
by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of 57 were alive in 97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market Mr. Foster and his McKinsey
colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.Financial Times/11.28.2002
Survivors underperform. Its just a fact: Dick Foster 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 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 When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Im sure
there are success stories out there, but at this moment I draw a blank. Committee, answered: Mark Sirower, The Synergy Trap Conglomerates dont work James
Surowiecki, The New Yorker (07.01,2002) MERGERS: Why Most Big Deals Dont Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth. BusinessWeek/10.14.2002
I believe large research organizations are less transparent, with less communication and more bureaucracy and it is more difficult and problematic to produce innovations in large institutions. Franz Humer, CEO, Roche Way to Go, Guys
2002 write downs from recent acquisitions $1,000, 000,000, 000* *$1 trillion (Source: Harpers Index 04.2002)
Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against. Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors
Lessons from the Bees! Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Natures] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for mergings sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What
the bees are telling us is that the corporate world has got it all wrong. David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK] TP on Acquisitions 1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.)
2. Big (GE, Cisco, Omnicon) acquires small/specialist = Good if you can retain Top Talent. 3. Odds on achieving projected synergies among Mixed Big cultures: 10%. 4. Max Scale Advantages are achieved at a smaller size than imagined. 5. Attacked by Big, Mediocre Medium marries Mediocre Medium to bulk up. Result: Big Mediocrity or worse. 6. Any sizeif Great & Focusedcan win, locally or globally.
7. Increasingly, Alliances deliver more value than mergers and clearly abet flexibility. CEOs appointed after 1985 are 3X more likely to be fired than CEOs appointed before 1985 Warren Bennis, MIT Sloan Management Review
The [New] Ge Way DYB.com Top-performing Companies Extremely contentious boards that regard dissent as an obligation
and that treat no subject as undiscussable Jeffrey Sonnenfeld, Yale School of Management Change the rules before somebody else does.
Ralph Seferian, VP, Oracle Most of our predictions are based on very linear thinking. Thats why they will most likely be wrong. Vinod Khosla, in GIGATRENDS, Wired 04.01
The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M The secret of fast progress is inefficiency, fast and
furious and numerous failures. Kevin Kelly RM: A lot of companies in the Valley fail. RN: Maybe not enough fail. RM: What do you mean by that? RN: Whenever you fail, it means
youre trying new things. Source: Fast Company The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo (03.02)
Silicon Valley Success [Failure?] Secrets Pursuit of risk: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpot Source: The Economist
Axiom (Hypothesis): We have been screwed by Benchmarking Best Practice C.I./Kaizen. Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity in
discontinuous/ambiguous times. In the modern military, risk is anathema to rising stars, who cannot afford any slip-ups on their records. Zero defects and zero tolerance are common bywords.Newsweek/09.16.02
Organize for performance & customer satisfaction. Disorganize for renewal & innovation. Rumsfeld values
mavericks and tries to protect and promote them. Newsweek/ 09.16.02 Rose gardeners face a choice every spring: how to prune our roses. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. You will reduce each rose plant to a maximum of three stems. This
represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the the roses core business. However, if this is an unlucky year [late frost, deer, green-fly invasion], you may lose the main stems or the whole plant! Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will leave more stems on the plant. You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the
plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes resourcesthe extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier. Tolerance of internal weakness, ironically, allows the rose to be stronger in the long run.Arie De Geus, The Living Company Japans Science Gap *
Rice farming culture: uniqueness suppressed. Govt control of R & D. Promotion based on seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. bold leaps. Lack of competition and critical evaluation (peer review). Syukuro Manabe: What we need to create is job insecurity rather than security to make people compete more. *Hideki Shirakawa, Nobel laureate, chemistry
December 2000: Swiss House for Advanced Research & Education. Cambridge, Massachusetts. Xavier Comtesse: You never hear a Swiss say, I want to change the world. We need to take more risks.
The Word(s) on Vitality: Gary Hamel Sell By [jettison old crap] Spin Out [support entrepreneurs] Spin In [buy young firms] No Wiggle Room!
Incrementalism is innovations worst enemy. Nicholas Negroponte Just Say No I dont intend to be
known as the King of the Tinkerers. CEO, large financial services company (New York, 5-99) Jim & Tom. Joined at the hip.
Not. Huh? Quiet, workmanlike, stoic leaders bring about the big Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U. S. Grant/W. T. Sherman
TR/FDR/LBJ/RR/JFK M.L. King C. de Gaulle M. Gandhi W. Churchill M. Thatcher Picasso Mozart Copernicus/Newton/Einstein
J. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S. McNealy A. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison Jim Collins vs. Michael Maccoby quiet, workmanlike, stoic vs. larger-than-life leaders/ egoists,
charmers, risk-takers with big visions: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever. Kjell Nordstrm and Jonas Ridderstrle, Funky Business
Built to Last v. Built to Flip The problem with Built to Last is that its a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility. Increasingly, successful businesses will be ephemeral. They will be built to yield something of value and once that value has been exhausted, they will vanish.
Fast Company (03-00) The Futility of Size Virtualization is the recognition that territorial size does not solve economic problems. Economic access must become the substitute for increasing
domain. Richard Rosecrance, The Rise of the Virtual State In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshedand produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy
and peace, and what did they produce the cuckoo clock. Orson Welles, as Harry Lime, in The Third Man Warren Bennis & Patricia Ward Biederman/ Great Groups Dont Last Very Long!
Organizing Genius: W.A. Mozart 1756 1791 HE CHANGED THE WORLD AND ENRICHED HUMANITY 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 (08.00) 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 Three Levels of Innovation Transformational Substantial
Incremental Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes! Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness.
F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction. Boyd Eglin Flag: 100%
AGAINST ZERO DEFECTS General, if youre not having accidents, your training program is not what it should be. You need to kill some pilots. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
OODA Loop/Boyd Cycle Unraveling the competition/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ So quick it is disconcerting (adversary over-reacts or under-reacts)/ Winners used tactics that caused the enemy to unravel before the fight (NEVER HEAD TO HEAD)
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Fast Transients Buttonhook turn (YF16: could flick from one maneuver to another faster than any aircraft) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity./ Arrange the mind of the enemy.T.E. Lawrence/ Float like a butterfly, sting like a
bee.Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) F86 vs. MiG/Korea/10:1 Bubble canopy (360 degree view) Full hydraulic controls (The F86 driver could go from one maneuver to another faster than the MiG driver)
MiG: faster in raw acceleration and turning ability; F86: quicker in changing maneuvers BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) USMC COL Mike Wyly: kept the enemy off-balance; they knew Delta
Company [RVN] could show up anywhere, anytime 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)
The stuff has got to be implicit. If it is explicit, you cant do it fast enough. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) II. NEW
BUSINESS. NEW TECH. 3. The White Collar Revolution & the Death of Bureaucracy. 108 X 5
vs. 8X1 = 540 vs. 8 (-98.5%) The coefficient of friction associated with the grunge of business is amazing!
Michael Schrage A bureaucrat is an expensive microchip. Dan Sullivan, consultant and executive coach IBMs Project
eLiza!* * Self-bootstrapping/ Artilects There Is No Such Thing as the Tooth Fairy. IBM Self-healing eServers* *Approximate TV ad copy (11.2002)
We own all the intellectual property, we farm out all the direct labor. Jim McDonnell, VP, IBM [Dont own nothin if you can help it. If you can, rent your shoes.
F.G.] The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions wth few or no manufacturing capabilities a company with
a head but no body. Richard Rosecrance, The Rise of the Virtual State Deep Blue Redux*: 2,240 EKGs 1,120 heart attacks. Hans Ohlin
: 620. Lars Edenbrandts software: 738. (50 yr old chief of coronary care, Univ of Lund/SW) *Only this time it matters!
Most physicians believe that diagnosis cant be reduced to a set of generalizationsto a cookbook. How often does my intuition lead me astray? The radical implication of the Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawedit causes more mistakes
than it prevents. Atul Gawande, Complications Doctors are faced with the very real threat of irrelevance in ten years. Youll go to a lab, have a blood sample drawn, and a readout of your genetic deficiencies will be producedalong with Doctors Orders for appropriate treatment;
only there wont be any doctor. Leading Pediatric Cardiologist (11.2002) Probable parole violations: Simple model (age, # of previous offenses, type of crime) beats M.D. shrinks. 100 studies: Statistical formulas > Human In virtually all
cases, statistical thinking equaled or surpassed human judgment.Atul Gawande, judgment. Complications Unless mankind redesigns itself by changing our DNA
through altering our genetic makeup, computergenerated robots will take over the world. Stephen Hawking, in the German magazine Focus Vernor Vinge/Mr. Singularity The transition time from human history to post-human singularity time, Vinge thinks, will be
astonishingly shortmaybe one hundred hours from the first moment of computer selfawareness to computer world conquest.Esquire/12.2002 N.W.O./Holy Moly: Unemployment up 2% real wage growth
highest since 60s productivity soaring. Source: BW/02.11.2002 E.g. Jeff Immelt: 75% of admin, back room, finance digitalized in
3 years. Source: BW (01.28.02) Everybodys Doin It! The leading Indian
outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain. The Economist/01.11.2003 4. IS/ IT/ Web On the
Bus or Off the Bus. 2.5G, 3G, 4G Windows Symbian Java Bluetooth Wi-Fi
PCs-PDAs-Cellphones E-business vs. M-business Etc. Outsiders view: (1) Billions are being spent, even in a down market. (2) NOBODY HAS A CLUE AS TO WHO THE
WINNERSAND LOSERS WILL BE. (3) Yet you must play. Now. Hard. Fast. 100 square feet Dells OptiPlex Facility
Big Job: 6 to 8 hours. (80,000 per day) Parts Inventory: 100
square feet. The Real News: X1,000,000 TowTruckNet.com Impact No. 1/ Logistics &
Wal*Mart Dell Amazon.com Autobytel.com FedEx UPS Ryder Cisco Etc. Etc. Ad Infinitum. Distribution: $400.
Wal*Mart: 13%. Autobytel: Source: BW(05.13.2002) If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce
data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.Tom Stewart, Business 2.0 Supply-chain Optimization
From: Design-chain Optimization To: Source: Cadence Design Systems
A Big Electronics Show Is All About Connections headline, New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX NOKIA Connecting
People SOS : Emergency Agencies Often Unable to Talk to Each Other headline, p1, USA Today/11.20.2002
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) All to All
?: Americans on the Web/03.2002 50,000,000 75,000,000 100,000,000 125,000,000 150,000,000 175,000,000
157,000,000* * +2M/mo. Source: Newsweek (03.25.2002) WebWorld = Everything Web as a way to run your businesss innards Web as connector for your entire supply-demand chain Web as spiders web which re-conceives the industry
Web/B2B as ultimate wake-up call to commodity producers Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entre, at any size, to Worlds Best at Everything as next door neighbor
Jargon Bath! Bureaucracy free Systemically integrated Internet intense Knowledge based Time and location free Instantly responsive Customer centric
Mass customization enabled. Translation Bureaucracy free = Flat org, no B.S. Systemically integrated = Whole supply chain tightly wired/ friction-free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever
Instantly responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements Message: eCommerce is not a
technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies. Message: There
is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottleneckedcommunication, six-layer organization. Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ all of that is wrong for running an ebusiness. Ray Lane, Kleiner Perkins
Read It Closely: We dont sell We sell speed. insurance anymore.
Peter Lewis, Progressive The New Infantry Battalion/ New York Times/12.01.2002 Pentagons Urgent Search for Speed. 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities.
Find-to-hit: 45 minutes to 15 minutes in just one year. Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive
believed as many as six impossible things before breakfast. Lewis Carroll Inet allows you to dream dreams
you could never have dreamed before! Dont rebuild. Reimagine. The New York Times Magazine on the future of
HUMANAs Dreams. Emphesys: Put everything on the Internet. CEO Mike McCallister, charge to 200-person outside Inet unit: Imagine an ideal Web-based health insurance system and then create a product as close as possible to that vision. Start with own employees: SmartSuite. Member employees: Plan their own coverage and shoulder more costs. Dell is model: Fully customized health for every
individual. Marketing pitch for employers: Buy choice for employees through a single sourceHumana. Source: Fortune/05.27.2002 Supposejust supposethat the Web is a new world were just beginning to inhabit. Were like the earlier European settlers in the United States, living on the edge of the forest. We dont know whats there and we
dont know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesnt hold
here, and uncommon sense hasnt yet emerged. David Weinberger, Small Pieces Loosely Joined [ Words to Live By Hierarchy is an organization with its face toward the CEO and its ass toward the customer.
Kjell Nordstrom and Jonas Ridderstrale, Funky Business] Hyperlinks subvert hierarchy! The Cluetrain Manifesto Case:
CRM Anne Busquet/ American Express Not: Age of the Internet Age of Customer Control
Is: Amen! The Age of the Never Satisfied Customer Regis McKenna
The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead. Kjell Nordstrm and Jonas Ridderstrle,
Funky Business Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. What we are witnessing is a
collapse of that advantage, prestige and authority. Michael Lewis, next A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumersraising their expectations and, in many cases,
handing them the controls. [Healthcare] consumers are driving radical, fundamental change. Deloitte Research, Winning the Loyalty of the eHealth Consumer Welcome to D.I.Y. Nation: Changes in business processes will emphasize self service. Your costs as a business
go down and perceived service goes up because customers are conducting it themselves.
Ray Lane, Oracle Psych 101: Strongest Force on Earth? My need to be in perceived control of my universe!
UBIQUITY! Its the cars, not the tires, that squeal: NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McDs, gas stations and parking lots next. OnStar (GM/1.5M). Plus: black boxes, GPS (the case of the $450 ticket), CA smog offenders.
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! Rebuttal: (1) Service sucked in the pre-electronic age. (2) NewGen believes in the screen! (So do I.) One Persons Opinion
TP to reporter: Service is MUCH better! Would you go back to bank tellers and phone operators? Value that I place on a smile: 3 on a scale of 10. Value I place on fast & accurate digital
response: 11 on a scale of 10!! -5% defections = +25% to +85% profit. Lose 15% to 35% p.a. 69% defect as a result of lousy sales or service experience. (Q: But is this the point???? A: Yes. No.)
M. Rogers: CGE&Y (Paul Cole): Pleasant Systemic Opportunity. Better job of what we do today vs. Rethink overall enterprise strategy.
Transaction vs. Message CRM: Madness = 600 CRM vendors. ???: Do it all or do something. Past: over-invest in lowvalue customers. Idea: better experience, not off-load work to customer. Relationship = f(dialogue & knowledge & duration). Key: new
attitudes, DESTRUCTION of functional barriers to info & action. Wells Fargo ($285B): Master of B&C 3M $900M since 99. . 1/3rd of chk
acct customers on line. 5,400 branches: 4 of 5 who do product research on line purchase at branch. Wire transfer, save 30%; 17% less calls. Material diff to bottom line. Source: BW Online (03.20.02) Here We Go Again: Except Its Real This Time! Bank online: 24.3M (10.2002); 2X Y2000.
Wells Fargo: 1/3rd; 3.3M; 50% lower attrition rate; 50% higher growth in balances than offline; more likely to cross-purchase; happier and stay with the bank much longer. B of A: 4M of 15M ( way beyond the early adopters). Source: The Wall Street Journal/10.21.2002 The Cluetrain Manifesto
Hyperlinks subvert hierarchy! The Cluetrain Manifesto Corporate Resistance to It It all goes back to fear of losing control!
The Cluetrain Manifesto E-business is the final nail in the coffin for bureaucracy at GE. Jack Welch/ GE Annual Report 2000
[ Words to Live By Hierarchy is an organization with its face toward the CEO and its ass toward the customer. Kjell Nordstrom and Jonas Ridderstrale, Funky Business]
Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the Coming Century Hong Kong: Prototypical Virtual State 83% Service
8% Mfg. Source: Richard Rosecrance, The Rise of the Virtual State The new dependence on productive assets located within someone elses state represents an unprecedented trust in the integrity and peacefulness of strangers. In its pure form an ideal model toward which
many states are tending the virtual state carries within it the possibility of an entirely new system of world politics. Richard Rosecrance, The Rise of the Virtual State Imagine a world where a citizen could search the globe to assemble my government, the ultimate in customized,
customer-centric services. Health care from the Netherlands, business incorporation in Malaysia Don Tapscott The virtual corporation is research, development, design, marketing, financing, legal, and
other headquarters functions with few or no manufacturing capabilities a company with a head but no body. Richard Rosecrance, The Rise of the Virtual State We own all the intellectual property, we farm out all the
direct labor. Jim McDonnell, VP, IBM Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on crown jewel handsets 5. Net: a wireless specialist that
depends on services more than manufacturing, on knowledge more than metal Source: BW/11.04.02 The Futility of Size [Regarding this issue] the new
process of virtualization fully exerts itself. Virtualization is the recognition that territorial size does not solve economic problems. Economic access must become the substitute for economic domain. Richard Rosecrance, The Rise of the Virtual State
TP: Skill at creating, exploiting, and exiting crucial alliances beats ownership of fixed assets. At the ultimate stage, competition among nations will be competition among educational systems, for
the most productive and richest countries will be those with the best education and training. Richard Rosecrance, The Rise of the Virtual State Whats the Common Denominator? The Dutch the British the
Rothschilds Cargill Sumitomo the KGB the CIA Mossad Enron Wal*Mart McKinsey FedEx UPS Mr. Speaker Henry Kissinger Executive secretaries the Corner Grocer Women-ingeneral? Masters of information acquisition, manipulation, dissemination, and
utilization. Networkmeisters. Agile. Temporary. Virtual is thy name. Motto: Applied information is power/wealth. III. NEW BUSINESS. NEW
VALUE PROPOSITION. 5. The PSF Solution: The Professional Service Firm Model. So what will be the
Basic Building Block of the New Org? Every job done in W.C.W. is also done outside for profit!
Answer: PSF! [Professional Service Firm] Department Head to Managing Partner, HR [IS, etc.] Inc.
TP to NAPM: You are the Rock Stars of the B2B Age!
Message: You are Re-invention Evangelists! Chicago November 1999: HRMAC support function / cost
center / bureaucratic drag or Are you Rock Stars of the Age of Talent
P.S.F.: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot Talent (see below) Adventurous culture Proprietary Point of View (Methodology) W.W.P.F. (100%)/Outside Clients (25%++) When: Now!
BMWs Designworks/USA: >50% from outside work Bill of (SELECTIVE) Rights YOU HAVE THE RIGHT TO CHOOSE
YOUR CLIENTS! (Wanna be-stay-get COOL Work With Cool Clients!) (YOU ARE YOUR CLIENT LIST.) (LIFE IS TOO SHORT TO WORK WITH JERKS.) (Mass marketers: TARGET INNOVATION. E.g.: African-Americans Hispanics the Aging Population Greens Women)
Culture Change is not Corporate. Culture Change is not a Program. Culture Change does not take Years. Culture Change does not start Today. Culture Change starts Right Culture Change Now!
Lives in the Moment! Culture Change is Entirely in Your Hands! What Do I Do First? One Minute Excellence!*
*Thomas Watson C.I.O. to C.E.F.R.N.S.* *Chief Evangelist For Really Neat Stuff
G.M. = The Recruitment and Development of Top Talent. [Period!] V.C. = Bets on Talent. Bets on Projects. [Period!] Dept. Head I = Sports G.M.
Dept. Head II = V.C. eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Model PSF
(1) Translate ALL departmental activities into discrete W.W.P.F. Products. (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining Centers of Excellence are retained &
leveraged to the hilt! Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve become more than that. We pay for ourselves, and we actually make money
for the company. Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com) The PSF Problem Professionalism = Arrogance = Pseudoscience. Hear no evil,
see no evil, dont rat out your peers Docs, Teachers, Clergy (Law), Accts (Berardino) Everybodys Doin It! The leading Indian outsourcers reckon that the key to their long-term
prosperity is bagging ever larger deals and moving ever higher up the value chain. The Economist/01.11.2003 6. The Heart of the Value Added Revolution: PSFs Unbound/ The
Solutions Imperative. Base Case: The Sameness Trap Companies have defined so much best practice
that they are now more or less identical. Jesper Kunde, A Unique Moment While everything may it is also increasingly the same.
be better, Paul Goldberger on retail, The Sameness of Things, The New York Times When McDonalds first started exporting its formula of quality, cleanliness and service, it was
something of a novelty. These days, quality, cleanliness and service are a givenand people are becoming more interested in what they are eating. FT/12.21.2002 We make over three new product announcements a day. Can you remember
them? Our customers cant! Carly Fiorina 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 Funky Business: To succeed we must stop being so goddamn normal. In a winner-takes-all world,
normal = nothing. When we did it right it was still pretty ordinary. Barry Gibbons on
Nightmare No. 1 Customers will try low cost providers because the Majors have not given them any clear
reason not to. Leading Insurance Industry Analyst SWA > American + Continental + Delta + Northwest + United + USAirways.
Source: Boston Globe (12.22.2001) Getting Beyond Lip Service! No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether its financial
security, buying a car, paying for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group The Internet is the most effective profitkiller on earth it stimulates a TRUE FREE MARKET; and a real free market is the most dangerous of marketplaces for companies selling the SAME OLD STUFF. To those with COURAGE, free markets are
greatthey help kill off the deadwood competitors who dont have the courage to changemaking way for them to LEVERAGE their DRAMATIC DIFFERENCE into profitable growth.Doug Hall Everybodys Doin It! The leading Indian
outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain. The Economist/01.11.2003 The
Big Day! 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers
consulting business! These days, building the best server isnt enough. Thats the price of entry. Ann Livermore, Hewlett-Packard Systems
Integrator of choice. Global Services: Gerstners IBM: $35B. Pledge/99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).
You are headed for commodity hell if you dont have services. Lou Gerstner on IBMs coming revolution (1997) Service-Systems Paradox:
Cut & Grow Automate 75% of commodity service activities and/but Add value via people-intensive strategic/systems-integration activities (E.g.: Could Suns service/sysint business be 60% of
revenues?) (Hiring from PWC, etc.) AT&T: President David Dorman: Back to long distance but with bundles of lucrative corporate services for the likes of Merrill Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers (50%)hold on to high enders.
Source: BW/05.20.2002 Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on crown jewel handsets 5. Net: a wireless specialist that
depends on services more than manufacturing, on knowledge more than metal Source: BW/11.04.02 We want to be the air traffic controllers of electrons.
Bob Nardelli, GE Power Systems Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the customers profitability. Are customers bottom lines really benefiting from
what we provide them? Bob Nardelli, GE Power Systems Keep In Mind: Customer Satisfaction versus
Customer Success Was: Big Iron Transformer Dudes Division.
Is: Air Traffic Controllers of Electrons. Was: Bunch of Guys Who Make Circuit Breakers
Division. Is: GE Industrial Systems. E.g. UTC/Otis + Carrier: boxes to integrated
building systems Units of Coolth Leased AC: 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 A little-known fact: Siemens is now the worlds largest application service provider* to the health business. Digitally stored X rays, recordkeeping, the cameras that guide surgeons in the operating theaterall run on Siemens
software Forbes/09.16.2002 *E.g.: Siemens is giving Health South an all-digital hospital of the future. UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers) New Springs = Turnkey Flexible sourcing. Collections. Packaging. Merchandising.
Promotion. Systems & Site mgt. No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether its financial security, buying a car, paying
for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group Our mission is to go from being the worlds premier timesharewhich is a large idea in a small industryto being what we call the market makers for global travel and leisure. We need
to enable developers to be involved in more travel and leisure products, rather than just the timeshare side. Ken May, RCI (Source: Developments) VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings
in the United States. Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location. New York Times (12.16.2001) Architecture is
becoming a commodity. Winners will be Turnkey Facilities Management providers. SMPS Exec We are a real estate facilities consulting
organization, not just an interior design firm. Jean Bellas, founder, SPACE (from SMPS Marketer) Omnicom: 57%
(of $6B) from marketing services Who was the number one employer of architecture school grads in the U.S.
last year? Eat Or Be Eaten. Message: HP. Sun. IBM. GE/PS. GE/IS. (GE/AE. GE/MD.) UTC. Farmers. Delphi.
UPS/ FedEx/ Ryder. Springs. Omnicom. IDEO. Accenture. Equity Office Properties. RCI. Etc. Etc. Words: Partners Value Added Intellectual-capital Added Consultative-skills Added Implementation Added Model
PSF Outsourcing (??) Acquisitions-led (Omnicom et al.) Experiences- (Solutions-) (Customer Success-) driven. (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/
Solutions/ Customer Success. Core Logic: Model2002/3/4/5/?? Dell* + IBM** = Magic
*Cut (ALL) the bullshit **Add (LOTSA) soft/integrative/experiences value The Seagate Exception. (Paradox? Possibility?) 7. The
Solutions25.* *NO MORE SILOS. NO MORE STOVEPIPES. (DAMN IT.) 1. Its the (OUR!) organization, stupid! 2. Friction free! 3. No STOVEPIPES! 4. Stovepiping is a F.O.Firing Offense. 5. ALL on the web! (ALL = ALL.)
6. Open access! 6. Project Managers rule! (E.g.: Control the purse strings and evals.) 7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.) 8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.) 9. Solutions = Our culture.
10. Partner with B.I.C. (Best-In-Class). Period. The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational
diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Rene Tissen, Zero Space: Moving Beyond Organization Limits. In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils
and paperwork, and archaic computer systems that dont talk to each other. Boston Globe (09.30.2001) Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. Bill Owens, Lifting the Fog of War
By combining powerful computer technology and other modern information-based systems we could make a revitalized, leaner military force that is designed to outsee, outmaneuver and outfight any foe. Bill Owens, Lifting the Fog of War
P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say Over Research Advertising Age (03.25.2002)
12. All functions contribute equallyIS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc. 13. Project Management can come from any function. 14. WE ARE ALL IN SALES. PERIOD. 15. We all invest in wiring the customer organization. 16. WE ALL LIVE THE BRAND. (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMERPARTNER.)
17. We use the word PARTNER until we all want to barf! 18. We NEVER BLAME other parts of our organization for screw-ups. 19. WE AIM TO REINVENT THIS INDUSTRY! 20. We hate the word-idea COMMODITY. 21. We believe in High tech, High touch. 22. We are DREAMERS.
23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.) 24. If we play the SOLUTIONS GAME brilliantly, no one can touch us! 25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE All Hands affair! Q: Is that all there is? A: Quite possibly.
Roches New Scientific MethodFast Company. And? X-Functional Teams (NO STOVEPIPES!). Fail fast. The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.
Duh???*: Weve come up with a solution. Weve begun to create a form of communications that is much better than we had before, and thats allowed us to gather better data. Weve finally realized that we have an interplay with other hospitals and with pre-hospital.Dr. Ben Honigman, ER, U. Colorado Hospital, on diverts (Denver Post/05.05.02)
*Internet + Data + Open data exchange + Barrier busting Innovation & Speeds New Basics* 1. XFTs are the culture. 2. Project-centric. 3. Open talent market. 4. Cause-based projects. 5. Ubiquitous open systems ISat home & throughout
supply chain. Web based. 6. F-L-A-T. 7. EVP (S.O.U.B), etc. *Innovation, Speed, CRM, Experience/ Solution demand this XF25: WOW Projects (100%). Physical Co-location (geologists & geophysicists). Strategic firings of turf kings (top performer goes). Bonuses
(big). Deep dipping. Job rotation (musical chairs at the top). EVP/SOUB. Lots of kids (Instant Messaging). Early Proj Mgt experience. Take techies on sales calls. Symbolic stuff (black berets). Supply Chain 2000: When Joe Employee at Company X launches his
browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs world customers, other employees, distributors, suppliers, manufacturers, consultants. The browser that is, the portal resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers dont have to be in the office. They can log on from a cell
phone, Palm Pilot, pager or home office system. Red Herring (09.2000) KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences. WHICH REQUIRES: Total
Enterprise Responsiveness beyond functional walls. The Real New Economy Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on the board stays the same but the capabilities of the pieces randomly change. Knights now move like bishops, bishops like rooks Technology does that.
It rubs out boundaries that separate industries. Suddenly new competitors with new capabilities will come at you from new directions. Lowly truckers in brown vans become geeky logistics experts. Business 2.0 (8.2001) IV. NEW BUSINESS. NEW BRAND.
8. A World of Scintillating/ Awesome/ WOW Experiences. Experiences are as distinct from services as services are from
goods. Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage 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 The [Starbucks] Fix Is on We have identified a third place. And I really believe that
sets us apart. The third place is that place thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager 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 Guinness as a brand is all about community.
Its about bringing people together and sharing stories.Ralph Ardill, Imagination, in re Guinness Storehouse WHAT CAN BROWN DO FOR YOU? From Service to Cause
7X. 730A800P. F12A.* *Plus: WOW Department Kill a Stupid Rule contests, etc. 2001R: 34%; P: 29%; 90-00: 2,048%. Commerce Bank/NJ ($10B). Source: FC05.02. The Experience Ladder Experiences Services
Goods Raw Materials 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00 Message: Experience is the Last 80% P.S.: Experience applies to all work!
1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy):
$10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00 I see us as being in the art business. Art,
entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation. Bob Lutz: Source: NYT 10.19.01
Experience It! Living Room, To Go: Cars of the future will be sanctuaries, with mood lighting, aroma therapy and massage seats. For long drives: movies and popcorn headline,
Newsweek/11.25.2002 Lexus sells its cars as containers for our sound systems. Its marvelous.Sidney Harman/ Harman International 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
Car designers need to create a story. Every car provides an opportunity to create an adventure. The Prowler makes you smile. Why? Because its focused. It has a plot, a reason for being, a passion. Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): Only Words Story Adventure Smile Focus Plot Passion
LAN Installation Co. to Geek Squad (2% to 30%/Minn.) Hire a theater director, as a consultant or
FTE! First Step (?!): Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of physical products to
choose between. Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.] Extraction & Goods: Male dominance Services & Experiences: Female dominance
Women dont buy They join them. brands. EVEolution
The Experience Ladder Experiences Services Goods Raw Materials Ladder Position
Measure Solutions Success (Experiences) Services
Satisfaction Goods Six-sigma 9. Experiences+: 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 Common Products Dream Products Maxwell House
BVD Payless Hyundai Suzuki Atlantic City New Jersey Carter Conners CNN
Starbucks Victorias Secret Ferragamo Ferrari Harley-Davidson Acapulco California Kennedy
Pele Millionaire Source: Gian Luigi Longinotti-Buitoni Building the Creative Organization Choose a creator: The cultural leader who gives the company an aesthetic point of view. Hire eclectically: Hire collaborators with different
cultures and past histories in order to balance rigor with emotion. Prepare vertically: Develop a rigorous understanding of the product and the client. Develop horizontally: Promote curiosity in unrelated disciplines. Lead emotionally: Engender passionate dedication through vision and freedom. Build for the long haul: Creativity requires a lifetime
commitment. Source: Gian Luigi Longinotti-Buitoni Emotional Design that Interprets Dreams Zero defects: Only the starting point. Love at first sight. Design for the five senses.
Develop to expand the Main Dream. Design so as to seduce through the peripheral senses. Source: Gian Luigi Longinotti-Buitoni The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients dreams. Dreamketing: The art of telling stories and
entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the buzz, the hype, the cult. Source: Gian Luigi Longinotti-Buitoni
Constantly Magnify Perceived Value Maximize your value-added by fulfilling the dreams of your clients. Only invest in what is valuable for your client. Dont let the short-term results weaken the long-term value of your brand. Balance rigorous control of the financial endeavor with the emotional management of your brand. Build a financial structure that allows risk-taking:
NO RISKSNO DREAMS. Establish long-term price power in order to avoid the trap of the commodity product. Source: Gian Luigi Longinotti-Buitoni 10. The Soul of Experiences: [Mostly Ignored]
Design Rules! Design Myths. Unconventional [Design] Messages Not about ... Lumpy Objects!
Not about ... $79,000 objects The I.D. [International Design] Forty* Airstream Alfred A. Knopf Apple Computer Amazon.com Bloomberg Caterpillar CNN Disney FedEx Gillette IBM Martha Stewart New Balance Nickelodeon Patagonia The New
York Yankees 3M Etc. * List No. 1, 1999 Unconventional [Design] Messages Not about ... Lumpy Objects! Not about ... $79,000 objects
Design Transforms even the [Biggest] Corporations! TARGET the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)
Lady Sensor, Mach3, and $70M on developing the OralB CrossAction toothbrush 23 patents, including 6 for the packaging Source: www.ecompany.com [06.00] Design2002 LISTERENEs PocketPaks
WESTINs Heavenly Westins Heavenly Bed Designs place in the universe.
And Tomorrow Fifteen years ago companies competed on price. Now its Tomorrow its design. quality.
Robert Hayes All Equal Except At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only
thing that differentiates one product from another in the marketplace. features. Norio Ohga Design is treated
like a religion at BMW. Fortune The new Beetle fails at most categories. The only thing it doesnt fail in is drop-dead charm.
Jerry Hirshberg, Nissan Design International Auto Designers at Milan Fashion Shows! Welcome to the world of the celebrity car designer, a new breed increasingly responsible for the fortunes of the worlds big car companies. We live in a
designer world, and the car designers are at its heart. The Economist/12.21.2002 Object of Desire! Every now and then, a design comes along that radically changes the way we think about a particular object. Case in point: the
iMac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at. Katherine McCoy & Michael McCoy, Illinois Institute of Technology The good 10 percent of
American product design comes out of big-idea companies that dont believe in talking to the customer. They're run by passionate maniacs who make everybodys life miserable until they get what they want. Bran Ferren, Applied Minds/Wired 1-2001
We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. But to me, nothing could be further from the Design is the fundamental soul meaning of design.
of a man-made creation. Steve Jobs Check Out the Language: Tomorrow its design Design is the only thing Design is religion ...
Drop-dead charm Object of desire Passionate maniacs Fundamental soul Bottom Line. Design is WHAT & WHY I LOVE.
LOVE. I LOVE my ZYLISS Garlic Peeler!
All Time No.1 (TP) Ziplocs Design is WHY I GET MAD.
MAD. Wanted: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward!
Design is never neutral. DESIGN is the principal difference between love and hate! Hypothesis:
THE BASE CASE: I am a design fanatic. Though not artistic, I love cool stuff. But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR
SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out or doesnt. Furthermore, its another one of those things that damn few companies put consistently on the front burner. Message (?????): Men cannot design for womens
needs. Perhaps the macho look can be interesting if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuitionits female.
Source: Philippe Starck, Harvard Design Magazine (Summer 1998) Step No. 1: NOTEBOOK POWER! [Start recording the awesome & the awful]
User STOP BLAMING YOURSELF! (Don Norman/Design of Everyday Things)
Sometimes I have episodes of wild fury in rental cars. Its not road rage. Its more like design rage. Susan Casey, www.ecompany.com
11. Design+ = Beautiful Systems. Fred S.s mediocre thesis. Herb K.s napkin. Great design =
One-page business plan (Jim Horan) There Are Lawyers and Then There Are Lawyers: John De Laney/ICM ANYTHING TRULY IMPORTANT CAN BE
BOILED DOWN TO RD 1/3 PAGE.* (*NO SHIT.) K.I.S.S.: Gordon Bell (VAX
500/50. daddy): Chas. Wang (CA): Behind schedule? Cut least productive 25%.
have. Must hate. / Must design. Must undesign. Systems: Must Mgt. Team includes EVP
(S.O.U.B.) Executive Vice President, Stomping Out Unnecessary Bullshit Ninety percent of what we call management consists of making it difficult for people to
get things done. P.D. First Steps: Beauty Contest! 1. Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty.
Grace. Clarity. Simplicity. 3. Re-invent! 4. Repeat, with a new selection, every 15 working days. 12. It all adds up to THE
BRAND. The Heart of Branding WHO ARE WE? Most companies tend to equate branding with the
companys marketing. Design a new marketing campaign and, voil, youre on course. They are wrong. The task is much bigger. It is about fulfilling our potential not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand
has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether or not you want to be UNIQUE NOW. Jesper Kunde, A Unique Moment WHATS OUR STORY?
We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion will affect everything from our purchasing decisions Companies will thrive on the basis of their stories
and myths. Companies will need to understand to how we work with others. that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton protests. Brands are not nouns but verbs. Source: Jean-Marie Dru, Disruption DO THE HOUSEKEEPERS & CLERKS BUY
IT? [ARE YOU V-E-R-Y SURE?] EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT? 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or
2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD
Law: DRAMATIC DIFFERENCE (Execs Dont Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug Hall 2 Questions: How likely are you to
purchase this new product or service? (95% to 100% weighting by execs) How unique is this new product or service? (0% to 5%*) *No exceptions in 20 years Doug Hall, Jump Start Your Business Brain They [consumer goods company] have acquired a bunch of
products, which is what everyone is doing. But whats the point, the message, the story line, the Big Idea that makes it all hang together? Exec, major consumer goods company Instead of having the
brand be seen as goodbetter-best for the same type of clothing, theyve got to give it more uniqueness. David Martin, Interbrand US, on The Gaps problems You do not merely want to be the best of the best. You
want to be considered the only ones who do what you do. Jerry Garcia A great company is defined by the fact that it is not compared
to its peers. Phil Purcell, Morgan Stanley Brand = You Must Care! Success means never letting the competition define you. Instead you have to define yourself based on a
point of view you care deeply about. Tom Chappell, Toms of Maine Were not going to be driven by where we think a funding agency would like to see us go. Were going to build our case and then find an organization
that agrees with us. Stephen Spongberg, Polly Hill Arboretum WHY DOES IT MATTER TO THE CLIENT? EXACTLY HOW DO I PASSIONATELY
CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ? Brand Promise Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which we are UNIQUE to our Clients.
(3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct us/them differences. (5) Try results on your teammates. (6) Try em on a friendly Client. (7) Try em on a 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 Salt is salt is salt. Right? Not when it
blue box comes in a with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is
demonstrably the same as many other products on the shelf. Tom Asaker, Humanfactor Marketing What Can [Cant] Be Branded? Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch.
Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, Gang, if they can do it, we can do it. Barry Gibbons V. NEW
BUSINESS. NEW WORK. 13. Toward Work that Matters: The WOW Project. Reward excellent
failures. Punish mediocre successes. Phil Daniels, Sydney exec TP: Your signature is not I work for Dow. Its, I accomplished [INCREDIBLY COOL PROJECT] while I
was associated with Dow.* *Terms: Signature. Portfolio. Projects. Braggables. Language matters! Wow! BHAG! Takes your breath away!
Lets make a dent in the universe. Steve Jobs Your Current Project? 1. Another days work/Pays the rent. 4. Of value.
7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!) Measures WOW!
Beauty! Raving Fans! Impact! Langua ge matter We shape our
buildings. Thereafter they shape us.WSC We shape our words. Thereafter they shape us.TJP Astonish me! / S.D.
Build something great! / H.Y. Immortal! / D.O. No damn J.A.M.S. Motto:
What the dot-com boom made vivid was that a significant portion of the workforce was disenchanted with the conventional office landscape and was looking for a viable alternative to the cubicle. Lise Anne Couture, designer/Metropolis/Reimagining Work/11.2002
I think its a chicken and egg proposition: do furniture manufacturers make cubes because of the demand, or is the demand there because its artificially created by the absence of any real alternatives? Lise Anne Couture, designer/Metropolis/Reimagining Work/11.2002
Why Not? My ideal office wouldnt have a chair. You would do two things there: stand up or lie down. These are the bodys most natural positions. Niels Diffrient, designer and
F500 consultant/Metropolis/Reimagining Work/11.2002 Legacy! TP: Your signature is not I work for Dow. Its, I accomplished [INCREDIBLY COOL PROJECT] while I
was associated with Dow.* *Terms: Signature. Portfolio. Projects. Braggables. Herman Edwards: I picked up one of those Jets books and I told them, What you do as a football team is your legacy. When youre 80 years old, what youve done will be in this book and no one can take that away from you. Your grandkids,
your kids after that, they will know what you did. Its about leaving your name in stone. Source: The New York Times (12.31.02) COL Richard Hallock (to incoming SECDEF James Schlesinger): You must understand that if you want to leave a legacy it is vital for you to make a quick decision about what you want the legacy to be
because after several months you become so caught up in the business of the Pentagon, so overwhelmed, that it will be too late. Pick a few projects and put the full weight of the office behind them. Guide the projects. Nurture them. Know from the very beginning that this will be your legacy. Force them through the bureaucracy. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
14. WOW Projects for the Powerless: A Surefire Recipe. Topic: Boss- free
Implementation of STM /Stuff That MATTERS! Worlds Biggest Waste Selling Up THE IDEA:
Model F4 Find a Fellow Freak Faraway F2F!/K2K!/ [email protected]/R.F!A.* *Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
And K2KK* S2SS** *Kook to Kooky Kustomer **Skunk to Scintillating Supplier Find something small
that you can turn around. If youre on a 9game losing streak, you need to start with one great inning.Rudy BOTTOM LINE The Enemy!
Joe J. Jones 1942 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM! 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 Nobody gives you
power. You just take it.Roseanne Kurt Carlson to young Marilyn Carlson: If you dont like Sunday School, change it! (She did.)
Obeying the rules is obeying their rules. [Women] can never be powerful as long as they try to be in charge in the same way men take charge. Harriet Rubin, The Princessa: Machiavelli for Women
Dont just express yourself. Invent yourself. And dont restrict yourself to off-the-shelf models.Henry Louis Gates, Jr., commencement address, Hamilton College Characteristics of the Also rans* Minimize risk
Respect the chain of command Support the boss Make budget *Fortune, article on Most Admired Global Corporations To Be somebody or to
Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Epitaphs from Hell Joe J. Jones
1942 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM! Joe J. Jones 1942 2002
HE MADE BUDGET! (AGAIN & AGAIN.) Joe J. Jones 1942 2002 HIS NET WORTH WAS $11,000,000. Joe J. Jones 1942 2002
HE HIT QUARTERLY EARNINGS TARGETS 44 TIMES IN A ROW. WHO WILL GO TO STOCKHOLM? (Damn it.) Very simple. I never edited
books I didnt love. J.O., on her consistent success as an editor If you are not prepared to be fired over your
beliefs you are working on the wrong project - TP If your boss demands loyalty, give him integrity. But if he demands integrity, give him loyalty.
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) IMPLEMENTATION SECRETS. Credibility. Demos & End Runs & Being There. Mr. OSHA Maine. Find three COs. Seek determined alumnae. Go to
Bangkok. (Forget: How do I erase the old? Supplant rather than change the regnant heirarchs.) Its politics, stupid! (Play or sit on the sidelines.)
White-wagon kill BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) 15. Bringing WOW Work to Fruition: The Sales
25. The Sales25: Great Salespeople 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customers consultants.) (And especially the corporate culture.) 4. Love internal politics at home and abroad.
5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customers org. (Relationships at all levels & functions.) 7. Wire the home teams org. and vendors orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)
Its politics, stupid! (Play or sit on the sidelines.) Great Salespeople 8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable
opportunities. (Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of moneyheres exactly how.) (IS THIS A PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?) 10. Will involve anybodyincluding mortal enemiesif it enhances the scope of the problem we can solve and
increases the scope of the opportunity we can encompass. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.) Great Salespeople 12. Think Turnkey. (Its always your problem!) 13. Act as orchestra conductor: You are responsible for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendors organization & build up their Rolodex. 15. Walk away from bad business. (Even if it gets you fired.) 16. Understand the idea of a good loss. (A bold effort thats sometimes better than a lousy win.) 17. Think those who regularly say Its all a price issue suffer from rampant immaturity & shrunken imagination. 18. Will not give away the store to get a foot in the door.
19. Are wary & respectful of upstartsthe real enemy. 20. Seek several cool customerswholl drag you into Tomorrowland. Great Salespeople 21. Use the word partnership obsessively, even though it is way overused. (Partnership includes folks at all levels throughout the supply chain.)
22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for little things.) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word we. 23. When you look across the table at the customer, think religiously to yourself: HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED? 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED
CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple! 16. Boss Work: Demos, Heroes, Stories Or: Starting a WOW Projects Epidemic.
Ordering Systemic Change is a Stupid Waste of Time! Premise: Demos! Heroes! Stories!
Lead Frogs Leapfrog Group: Demo = Story A key perhaps the key
to leadership is the effective communication of a story. Howard Gardner, Leading Minds: An Anatomy of Leadership MB S
A!* *Managing By Story-ing Around/David Armstrong 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 Success is the ability
to go from failure to failure without losing your enthusiasm. Winston Churchill (as quoted by John Peterman) Some people look for things that went wrong and
I look for things that went right and try to build on them. try to fix them. Bob Stone/ Mr.Rego/ Lessons from an Uncivil Servant
Find something small that you can turn around. If youre on a 9game losing streak, you need to start with one great inning.Rudy 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
VI. NEW BUSINESS. NEW YOU. 17. Re-inventing the Individual: Brand You/ You Inc./ Free Agent Nation
(Or Else.) 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 What strategic motto will dominate this transition from nation-state to marketstate? If the slogan that animated the liberal, parliamentary nation-states was make the world safe for democracy, what will the forthcoming motto be? Perhaps making the world available, which is to say creating new worlds of choice and
protecting the autonomy of persons to choose. Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History better material welfare vs. maximize the opportunity of its people Philip Bobbitt, The Shield of Achilles:
War, Peace, and the Course of History 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 New World of Work < 1 in 10 F500 #1: Manpower Inc. Freelancers/I.C.: 16M-25M Temps: 3M (incl. CEOs & lawyers) Microbusinesses: 12M-27M
Total: 31M-55M Source: Daniel Pink, Free Agent Nation Minimum New Work SurvivalSkillsKit2002 Mastery Rolodex Obsession (vert. to horiz. loyalty) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv
Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing Marketing Passion for Renewal Sams Secret #1!
Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. loyalty) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young
Embracing Marketing Passion for Renewal My ancestors were printers in Amsterdam from 1510 or so until 1750, and during that entire time they didnt
have to learn anything new. Peter Drucker, Business 2.0 (08.22.00) Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the
No. 1 industry in the next 30 years mostly on line. Peter Drucker, Business 2.0 (22August2000) 26.3 3 Weeks in May
Training & Prep: 187 Work: 41 (Other: 17) 1% vs. 367%
Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why dont businesspeople do it? Edward Jones Training Machine*
146 hours/employee/year New hires: 4X avg. 3.8% of payroll * #1, The 100 Best Companies To Work For/Fortune/01.2003 R.D.A. Rate: 15%?, 25%?
Therefore: Formal Investment Strategy/R.I.P. Invent. Reinvent. Repeat. Source: HP banner ad You are the storyteller of your own life, and you
can create your own legend or not. Isabel Allende PRECEDENT! No prudent man dared to be too certain of exactly who he was. Everyone had to be prepared to become someone else. To be
ready for such perilous transmigrations was to become an American.Daniel Boorstin Personal Brand Equity Evaluation I am known for [2 to 3 things]; next year at this time Ill also be known for [1 more thing]. My current Project is challenging me New things Ive learned in the last 90 days include
My public recognition program consists of Additions to my Rolodex in the last 90 days include My resume is discernibly different from last years at this time T.T.D./Assignment
Construct a 1/8-page or 1/4-page ad for Brand You for the Yellow Pages They Get it?! stone mason electrician
plumber tiler cabinet maker contractor blacksmith well driller blaster sheep shearer etc.
When was the last time you asked, What do I want to be? Sara Ann Friedman, Work Matters
The time seems appropriate to rethink the notions of self and identity in this rapidly changing age Tara Lemmey, Project LENS, past president Electronic Frontier Foundation I am an American, Chicago
born, and go at things as I have taught myself, free-style, and will make the record in my own way. Saul Bellow, The Adventures of Augie March I dont think theres anything
worse than being ordinary. American Beauty 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 Thriving in 24/7 (Sally Helgesen)
START AT THE CORE. Nimbleness only possible if we locate our inner voice, take regular inventory of where we are. LEARN TO ZIGZAG. Think gigs. Think lifelong learning. Forget old loyalty. Work on optimism. CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business. WEAVE A STRONG WEB OF INCLUSION. Build your
own support network. Master the art of looking people up. THE I work for a company called Me STREET JOURNAL Adventures in Capitalism
THE rise up and flee your cubicle STREET JOURNAL Adventures in Capitalism Bill Parcells World/ Brand You World! BLAME NOBODY!
EXPECT NOTHING! DO SOMETHING! NY Post (9/99) SARA HOROWITZ, Founder, Working Today & Portable Benefits Network Source: Esquire/12.2002
18. Boss Job One: The Talent Obsession. Brand = Talent.* *Duh.
Talent! Tina Brown: The first thing to do is to hire enough talent that a critical mass of excitement starts to grow. Source: Business2.0/12.2002-01.2003
The Talent Ten 1. Obsession P.O.T.* = All Consuming *Pursuit of Talent
Model 25/8/53 Sports Franchise GM 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 Visibly energetic/ Passionate/ Enthusiastic about everything. Engaging/ Inspires others. (Inspires the interviewer!) Loves messes & pressure.
Impatient/ Action fanatic. A finisher. Exhibits: Fat WOW Project Portfolio. (Loves to talk about her work.) Smart. Curious/ Eclectic interests/ A little (or more) weird. Well-developed sense of humor/ Fun to be around. ****** No. 1 re bosses: Exceptional talent selection & development
record. (Former co-workers: Did you visibly grow while working with X? / How has the department/team grown on a world-class scale during Xs tenure?) 2. Greatness Only The Best! From 1, 2 or youre out [JW]
to Best Talent in each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent Differentiation is all about being
extreme, rewarding the best and weeding out the ineffective. You build strong teams by treating individuals differently. Just look at the way baseball teams pay 20game winning pitchers and 40-plus homerun hitters.Jack Welch 3. Performance
Up or out! We believe companies can increase their market cap 50 percent in 3 years. Steve changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased
Macadam at Georgia-Pacific profitability from $25 million to $80 million in 2 years. Ed Michaels, War for Talent Message: Some
people are better than other people. Some people are a helluva lot better than other people. $1.00 for
competence. $249.00 for attitude/ honesty. Bonus/TP: 4. Pay Fork Over!
Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.
Ed Michaels, War for Talent (05.17.00) 5. Youth Grovel Before the Young! Why focus on these late teens and twentysomethings? Because they are the first
young who are both in a position to change the world, and are actually doing so. For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. The Internet has triggered the first industrial revolution in history to be led by the young. The Economist [12/2000]
8 Minutes* Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then theres oya yubi sedai, the thumb generation 6. Diversity
Mess Rules! Where do good new ideas come from? Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and
disciplines. Nicholas Negroponte Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mlange, the adulterated, the blemished, the rough, the black-and-blue, the mixand-match these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It
spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations. G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge CM Prof Richard Florida on Creative Capital: You cannot get a technologically
innovative place unless its open to weirdness, eccentricity and difference. Source: New York Times/06.01.2002 Duh! We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace,
basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood its in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. Thats what Super Saver is. All the signage is in both languages. Theres a 100 percent Spanish-speaking staff in the store.Larry Johnston, CEO, Albertsons
Expose yourself to the best things humans have done and then try to bring those things into what you are doing. Steve Jobs, on the eclectic nature of the teams he concocts; people of extraordinary tastes with intriguing backgrounds
Capitalism and the conditions for creating wealth have changed in ways that play to the strengths of hybrid individuals, organizations and nations. And those that wish to profit from changing economic conditions must view hybridity as their first and best option. This bold claim warrants an explanation. The ability to apply knowledge to new situations is the most valued currency in todays economy. Highly creative people
are misfits on some level. They tend to question accepted views and consider contradictory ones. This appreciation defines the mongrel mentality. Strangers instinctively question things that natives take for granted. Many things strike them as odd or stupid. G. Pascal Zachary, The Global Me 7. Women
Born to Lead! AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure Title, Special Report, Business Week, 11.20.00
The New Economy Shout goodbye to command and control! Shout goodbye to hierarchy! Shout goodbye to knowing ones place!
Guys want to put everybody in their hierarchical place. Like, should I have more respect for you, or are you somebody thats south of me? Paul Biondi, Mercer Consultants [from Its Not Business, Its Personal, Ronna Lichtenberg]
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 On average, women and men possess a number of different innate skills. And current trends suggest
that many sectors of the twentyfirst-century economic community are going to need the natural talents of women. Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World American women possess leadership abilities that are particularly effective in todays organizations, yet their abilities
remain undervalued and underutilized. In the future, what will distinguish one organization and one country from another will be its use of human resources. Today human resource utilization is not only a matter of social justice but a bottom-line issue. Judy Rosener, Americas Competitive Secret
TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list?
Who enjoys a recap to the days events? Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Investors are looking more and more for a relationship with their financial advisers. They
want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men. Hardwick Simmons, CEO, Prudential Securities
Thank you 17 Men: 8 4 Women: 19 Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership Team In a lot of countries of the world, it
would be very difficult for a woman to be a good CEO. I have a responsibility to do the best we can for shareholders. * ** *Source: New York Times/05.05.02 **Wouldnt you love to watch him tell that face-to-face to Margaret Thatcher or Carly Fiorina? (I would.)
Okay, you think Ive gone tooooo far. DO ANY OF YOU SUFFER FROM TOO MUCH TALENT? How about this: 63 of 2,500 top earners in F500
8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med faculty; 7% deans Source: Susan Estrich, Sex and Power 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
Its Girls, Stupid! 1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in high-level math and science courses More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1) Source: The Atlantic Monthly (May2000) Boys are trained in a way that will make them irrelevant. Phil Slater
Read This! Winning the Talent War for Women: Sometimes It Takes a Revolution Douglas McCracken, HBR [11-12/2000] Deloitte was doing a great job of hiring highperforming women; in fact, women often earned higher performance ratings than men in their first
years with the firm. Yet the percentage of women decreased with step up the career ladder. Most women werent leaving to raise families; they had weighed their options in Deloittes maledominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions. Douglas McCracken, Winning the Talent War for Women [HBR]
The process of assigning plum accounts was largely unexamined. Male partners made assumptions: I wouldnt put her on that kind of company because its a tough manufacturing environment. That client is difficult to deal with. Travel puts too much pressure on women.
Douglas McCracken, Winning the Talent War for Women [HBR] Goldsmith College research (UK): Gender stereotypes re-enforced. Men who extoll successes rewarded, women not. Men who face interviewer head on upgraded; women who look at floor or use sidelong glances do better. Women who nod
repeatedly do better, not men. Men who give long answers score well, women who give short answers do well. (College grads seeking jobs; HR interviewers2 M, 2F.) Source: The Observer/ London/ 01.12.2003 Would Congress [the Boardroom] be a different place if half the members
were women? From Sex and Power, Susan Estrich Norwegian Law: Boards must have at least 40% women.
8. Weird The Cracked Ones Let in the Light! The Cracked Ones Let in the Light Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels. David Ogilvy enough weird people in Are there
the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01) A great idea always comes from one persons mind, someone who is, by definition, local. If you place 10 people in Brussels to conceive a European [ad/marketing]
campaign, youll get nothing. Source: Jean-Marie Dru, Disruption 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) The A students work for the B students. The
C students run the business. The D students dedicate the buildings. Assertion to Kinkos founder Paul Orfalea from his Mom (Fortune/05.13.02) Most good ideas are born out of a little sketch. [They] probably dont occur when
everybody is sitting around a table, but rather when youre having something to eat or having a talk in a bar.Adrian Caddy, Imagination 9. Opportunity Make It an
Adventure! H.R. to H.E.D. ??? Human Enablement Department 10. Leading Genius
We are all unique! Beware Lurking HR Types One size NEVER fits all. One size fits one. Period.
48 Players = 48 Projects = 48 different success measures. MantraM3 Talent = Brand
Whats your companys EVP? Employee Value Proposition, per Ed Michaels et al., The War for Talent EVP = Challenge, professional growth,
respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent The Top 5 Revelations Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon
and stars. Over-deliver on peoples dreams they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent 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 Leaders-Teachers Do Not Transform People! Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostlycaveat: they dont engage unless theyre mad about something) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachersleaders) had never dreamed existedand then the leaders-mentors-teachers (6) applaud like hell, stage
photo-ops, and ring the church bells 100 times to commemorate the bravery of their followers explorations! First Steps Make a list of the traits you really want to unearth. (TP & sense of humor; GR & jaywalking.)
Promote for TDS/Talent Development Skills. Work up an EVP. ADDENDA: Tom Peters The
Talent50 The Talent50 1. People first! 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added. 4. Talent excellence in every part of the
organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is cool. The Talent50 8. Re-name HR. (Talent Department, Center of Talent Excellence) 9. Theres an HR Strategy
10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a world class Leadership Development Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The Top100, and every units Top10, are consciously managed.
The Talent50 15. People/Talent Reviews are the FIRST reviews. 16. HR Strategy = Business Strategy. 17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21. 20. Pursue the Best!
21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay! The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% business people. 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief.
28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect! 31. INTEGRITY! 32. Treat the Whole Individual. The Talent50 33. Places of grace.
34. MBWA: The Rudy Rule. 35. Thank You! 36. Promote for people skills. (ALL ELSE IS SECONDARY.) 37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring.
The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors. 43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses win people over. 47. GOAL: Adventures of Mutual
Discovery. 48. Foster Independence. 49. Enthusiasm! The Talent50 50. Talent =
Brand. VII. NEW BUSINESS: (NEW) BRAND INSIDE RULES Message 2002
BI > BO Brand Inside Rules! I came to see in my time at IBM that culture isnt just one aspect of the gameit is the game
Lou Gerstner, Who Says Elephants Cant Dance? Brand Inside Rules! If I could have chosen not to tackle the IBM culture head-on, I probably wouldnt have. My bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Lou Gerstner, Who Says Elephants Cant Dance? 19. THINK WEIRD the HVA/ High Value Added
Bedrock. The Cortez Strategy! The High Standard Deviation Enterprise. THINK WEIRD:
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
CUSTOMERS: Futuredefining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. Adrian Slywotzky, Mercer Consultants
If you worship at the throne of the voice of the customer, youll get only incremental advances. Joseph Morone, President, Bentley College These days, you cant succeed as a
company if youre consumer led because in a world so full of so much constant change, consumers cant anticipate the next big thing. Companies should be idealed and consumerinformed. Doug Atkin, partner, Merkley Newman Harty The future has
already happened. Its just not evenly distributed. Adrian Slywotzky Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive
customers, we will also become defensive. John Roth, CEO, Nortel I made a note. Im going after [PIONEER CO.], not the two establishment firms who were formerly at the top of my
2001 target list. We need a jolt. Things are going too well. Sales Exec, high-tech superstar ! W.I.W? 20 of 26
7 of top 10* *P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 (The billiondollar problem.) categories.
Source: Advertising Age 01.21.2002/BofA Securities Primary Obstacles to Marketing-driven Change 1. Fear of cannibalism. 2. Excessive cult of the consumer/ customer driven/ slavery to demographics, market research and focus groups.
3.Creating sustainable advantage. Source: John-Marie Dru, Disruption Account planning has become focus group balloting. Lee
Clow Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of sustainable
advantage after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition. Rich DAveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering HAVE MBAs KILLED OFF MARKETING?
Prof Rajeev Batra says: What these times call for is more creative and breakthrough reengineering of product and service benefits, but we dont train people to think like that. The way marketing is taught across business schools is far too analytical and datadriven. Weve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs. In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, McCann Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea. Businessworld/04Nov2002/Why Is Marketing Not Working? BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs dont work well for about half the patients for whom they are
prescribed, and experts believe genetic differences are part of the reason. The technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies it could limit the market for some of their blockbuster products that many of them are resisting its widespread use. The Wall Street Journal (06.18.2001)
Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Clayton Christensen, The Innovators Dilemma
It sees all its competitors accomplishments merely as conventions to be overturned. Sony is the epitome of discontinuity.
Source: Jean-Marie Dru, Disruption 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 Employees: Are there
enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01) Suppliers: There is an ominous downside to strategic supplier
relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees Top-performing Companies
Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable Jeffrey Sonnenfeld, Yale School of Management
Enormous sums of money are invested to reduce cycle time, improve quality, reengineer Much of this money is simply wasted. The waste is due to companies inability to develop wide-angle vision and tap into the power of the edge. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue
Employees Corporate consciousness is predictably centered around the mainstream. The best customers, biggest competitors, and model employees are almost invariably the focus of attention. Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees WE BECOME WHO WE HANG Message: TAKE
SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.] Big Idea/s V.C. GM
Portfolio Roster ????? Come up with three Crazy Ideas, one of which might work.
Fr Timothy Radcliffe, Master of the Dominicans, to his friars WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) dont need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy
superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Dont try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your companys success.
Bob Sutton, Weird Ideas That Work: 11 Ideas for Promoting, Managing, and Sustaining Innovation Advice to Corporate Leaders: Consider the metaphor of the windmill: You can harness raw power but you cant control it. Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. Hire a corporate anthropologist to analyze how tolerant
your organization is of deviants and other innovators. Once the anthropologist leaves, hire a shaman to drive out the evil spirits of conformity. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) Deviance tells the story of every mass
market ever created. What Deviants, Inc. starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there way out there.
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) Innovation Source No. 1*: PPPs/Personally Pissed-off People Branson started Virgin Atlantic because flying other airlines was so dreadful. Fortune/05.13.2002
*And there is no No. 2! As Francois Dalle, the chairman of LOreal, puts it, the planner must catch what is barely beginning. Source: Jean-Marie Dru, Disruption
Renewal = The Weird 10 = The High S.D. Enterprise/Individual Pioneer [Weird] Acquisitions Pioneer Customers & Alliance Partners [Measure the Portfolios S.D.] Divide & Conquer/Sell-by [Lessons from the Bees, Sir Richard, Gary H.] Pioneer Assignments/Pioneer Projects [F2F & K2K] 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 Failures] Re-enforce a Culture of Disrespect/Piracy 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 Button-down Org
H.S.D.E. 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 ?????: Get better organized to do good work vs. Get better disorganized to do great work
Big Idea/s V.C. GM Portfolio Roster 20. Brand Inside
The 10 Basics Summary: Message 2002
BI > BO The Brand Inside 10 BI1. The Execution Imperative: An Action Culture BI2. Cherish Failures
BI3. Dent the Universe: WOW Projects/BHAGs BI4. Tell Me a Story: Demo Mania BI5. Cut the Crap: WebWorld = ALL BI6. Beautiful Systems BI7. The Modified Basis for Value Added: The New Brand Inside Warriors BI8. Talent Time BI9. The HSDE: Weird Begets Weird BI10. A Brand New/Brand You World
21. Tomorrows Organizations Itinerant Potential Machines. New Organizational World: Shifts of Emphasis Staffing
Organization Workforce Power Source Loyalty Career Asset Fat Vertical Homogeneity
Status/Command Rights Company Organizational Capital Thin Horizontal Diversity Expertise/Relationships Project
Reputational Capital Source: The Workforce of the Future, IHRIM Journal (12.2000) 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.
VIII. NEW BUSINESS. NEW BEDROCK. (Or: Upending The Big 3.) 22. Brand Talent+: Addressing the
Education Fiasco At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.
Richard Rosecrance, The Rise of the Virtual State FES/NOV2001: New Work. New Education. The Twain Must Meet.
TP Mood Anger. Despair. Hopelessness. Losing the War to Bismarck (and Rockefeller)
J. D. Rockefellers General Education Board (1906): In our dreams people yield themselves with perfect docility to our molding hands. The task is
simple. We will organize children and teach them in a perfect way the things their fathers and mothers are doing in an imperfect way. John Taylor Gatto, A Different Kind of Teacher My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How
could any childlet alone our childreceive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor skills. grade in art at such a young age?
Jordan Ayan, AHA! How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the
time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a closet artist. The point is: Every school I visited was participating in the suppression of creative genius. Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fools Guide to Surviving with Grace An Unnatural
Way to Learn Schools Kafka-like rituals: enforce sensory deprivation on classes of children held in featureless rooms sort children into rigid categories by the use of fantastic measures such as age-grading, or standardized test scores train children to drop whatever they are occupied with
and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon keep children under constant surveillance, depriving them of private time and space John Taylor Gatto, A Different Kind of Teacher Kafka-like rituals (cont.): assign children numbers constantly, feigning the ability to discriminate qualities quantitatively insist
that every moment of time be filled with lowlevel abstractions forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their active learning time to acquire. John Taylor Gatto, A Different Kind of Teacher Doing Stuff that Matters!
During the first years of life, youngsters all over the world master a breathtaking array of competences with little formal tutelage. Howard Gardner, The Unschooled Mind Children should be taught in an
active way by doing things and playing games. Its very different to what is taught in schools which involves sitting back and absorbing information. Edward de Bono/The Independent/10.28.2002 The Learners Manifesto
The brain is always learning. Learning does not require coercion. Learning must be meaningful. Learning is incidental. Learning is collaborative. The consequences of worthwhile learning are obvious. Learning always involves feelings. Learning must be free of risk.
Frank Smith, Insult to Intelligence Really bright kids who just needed to get excited teacher, Oakley School Toms
Edu3M Manifesto* *Manifesto for Education in the 3rd Millennium Education3M Learning is a normal state. Children are learnavores. Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]
We learn at different rates. We learn in different ways. Boys and girls learn [very] differently. In a class of 25, there are 25 different trajectories. Learning in 40-minutes blocks is bullshit. Learning for tests is utterly insane. There are numerous rigorous evaluation schemes, of which testing is but oneand abnormal, by real
world standards. Education3M We learn most/fastest/most completely when we are passionate about what we are learning and it matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/ Learning by Internship. Classrooms are abnormal places.
We need changes of pace. [Japanese recesses after each class.] International test scores are not correlated with hours-per-year in class. Big classes are slightly problematic. Big schools suck. Period. Education3M
All thisthe right stufffits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.] U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning. Cutting art-music budgets is truly dumb. Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.] Teachers need enough space-time-flexibility to get
to know kids as individuals. Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.] Education3M Our toughest learning achievement mastering our native languagedoes not require schools, or even competent parents. [It does require a desperate need-to-know.]
Great teachers are great learners, not impartersof-knowledge. Great teachers ask great questionsthat launch kids on lifelong quests. The world is not about right & wrong answers; it is about the pursuit of increasingly sophisticated questionsjust ask a ski instructor or neurosurgeon.
Education3M Most schools spend most of their time setting up contexts in which kids learn not to like particular subjects. [Evidence shows that such antilearning sticks!] Vigorous exploration is normal until you are incarcerated in a school. Bite size education-learning is neither education nor learning.
Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in the hyper-structured classroom. Education3M The school reform movement is a giant step backwards embracing the Prussian-Fordist paradigm with renewed vigorat exactly the
wrong time. There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps. Alas, the teaching profession does not ordinarily attract cool dudes & dudettes. Schools of education should by and large have their charters revoked.
Education3M Stability is dead; education must therefore educate for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static body of facts.
Education must develop in youth the capabilities for engaging in intense concentrated involvement in an activity. [James Coleman, 1974.] [Hint: It doesnt.] [Hint: Understatement.] The boys who made the best Grotties usually turned out to be nonentities later; boys who hated
Groton did much better. FDR biographer John Gunther (quoted in Whoever Makes the Most Mistakes Wins, Richard Farson & Ralph Keyes) Fail . Forward. Fast. High Tech CEO, Pennsylvania
Read This! Whoever Makes the Most Mistakes Wins: The Paradox of Innovation Richard Farson & Ralph Keyes:
Ye gads: Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, hes actually found a negative correlation. It seems that schoolrelated evaluations are poor predictors of economic success, Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational
systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on. Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins 23. Revolution Required: The Healthcare
Mess. Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. What we are witnessing is a
collapse of that advantage, prestige and authority. Michael Lewis, next Anne Busquet/ American Express Not: Age of the Internet Age of
Customer Control Is: Amen! The Age of the Never Satisfied
Customer Regis McKenna Teens and young adults are flocking to the Web for health-related information as much as they are downloading music and playing games online and more often than shopping online,
according to a national survey from the Kaiser Family Foundation. Reuters (12.11.01): One in Four Internet Users Seek Religious Information
Reuters (12.24.2001) (God trumps money, sex.) Impact #1: Healthcare HealthCare2001
Consumerism X Demographics X IS/Internet X Info Consolidators X Genetics & Devices = YIKES! 1. Consumerism
centric Healthcare) (Patient- A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumersraising their expectations and, in many cases,
handing them the controls. [Healthcare] consumers are driving radical, fundamental change. Deloitte Research, Winning the Loyalty of the eHealth Consumer Teens and young adults are flocking to the Web for health-related information as much
as they are downloading music and playing games online and more often than shopping online, according to a national survey from the Kaiser Family Foundation. Reuters (12.11.01): Consumer Imperatives
Choice Control (Self-care, Self-management) Shared Medical Decision-making Customer Service Information Branding Source: Institute for the Future
Consumerism: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention. Info availability (disease, health, docs, support groups, outcomes). Self-care (chronic disease). High expectations (genetics, etc.). Boomers (see below). Savior for the Sick
vs. Partner for Good Health Source: NPR/VPR 08.15.00 He shook me up. He put his hand on my shoulder, and simply said, Old friend, you
have got to take charge of your own medical care. Hamilton Jordan, No Such Thing as a Bad Day (on a conversation with a doctor pal, following Jordans cancer diagnosis) 2. Demographics:
The BOOMERS Reach 55! Boomer World From jogging to plastic surgery, from vegetarian diets to Viagra, they are fighting to
preserve their youth and defy the effects of gravity. M.W.C. Howgill, Healthcare Consumerism, the Information Revolution and Branding Message Boomer: (1) There are l-o-t-s of us. (2) We have the $$$$$$. (3) Were/Im in
charge! (4) Well take no guff from anyone. (5) We know the emperor has no clothes. 3. The IS/Web REVOLUTION Were in the Internet
age, and the average patient cant email their doctor. Donald Berwick, Harvard Med School In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils
and paperwork, and archaic computer systems that dont talk to each other. Boston Globe (09.30.2001) Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the
Navy with its Air Force counterparts. To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. Bill Owens, Lifting the Fog of War
By combining powerful computer technology and other modern information-based systems we could make a revitalized, leaner military force that is designed to outsee, outmaneuver and outfight any foe. --Bill Owens, Lifting the Fog of War
Without being disrespectful, I consider the U.S. healthcare delivery system the largest cottage industry in the world. There are virtually no performance measurements and no standards. Trying to
measure performance is the next revolution in healthcare. Richard Huber, former CEO, Aetna As unsettling as the prevalence of inappropriate care is the enormous amount of what can only be called ignorant care. A surprising 85% of everyday medical
treatments have never been scientifically validated. For instance, when family practitioners in Washington were queried about treating a simple urinary tract infection, 82 physicians came up with an extraordinary 137 strategies. Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson
In health care, geography is destiny. Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson Geography Is Destiny
E.g.: Ft. Myers 4X Manhattanback surgery. Newark 2X New Haven prostatectomy. Rapid City SD 34X Elyria OHbreast-conserving surgery. VT, ME, IA: 3X differences in hysterectomy by age 70; 8X tonsillectomy; 4X prostatectomy (10X Baton Rouge vs. Binghampton). Breast cancer screening: 4X NE, FL, MI vs. SE, SW. (Source: various)
Geography Is Destiny Often all one must do to acquire a disease is to enter a country where a disease is recognizedleaving the country will either cure the malady or turn it into something else. Blood pressure considered treatably high in the United States might be considered normal in England; and the low blood pressure treated
with 85 drugs as well as hydrotherapy and spa treatments in Germany would entitle its sufferer to lower life insurance rates in the United States. Lynn Payer, Medicine & Culture Practice variation is not caused by bad or ignorant doctors. Rather, it is a natural consequence of a system that systematically tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good intentions and good training lead automatically to good results. Providers remain more comfortable with the habits of a guild, where each craftsman trusts his fellows, than with the demands of the information age. Michael Millenson, Demanding Medical Excellence CDC 1998: 90,000 killed
and 2,000,000 injured from nosocomial [hospital-caused] drug errors & infections Quality of care is the problem, not managed care. Institute of Medicine (from Michael
Millenson, Demanding Medical Excellence) RAND (1998): 50%, appropriate preventive care. 60%, recommended treatment, per medical studies, for chronic conditions. 20%, chronic
care treatment that is wrong. 30% acute care treatment that is wrong. In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to calculate medication doses. Eight out of 10 made calculation mistakes at
least 10% of the time, while four out of 10 made mistakes 30 % of the time. Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson The EMS Myth
Speed has never saved anybodys life. Period.W.H. Leonard, Medical Transportation Insurance Professionals Source: USA Today (03.21.02) 1,000,000
serious medication errors per year illegible handwriting, misplaced decimal points, and missed drug interactions and allergies. Source: Wall Street Journal/ Institute of Medicine Answer: (1)
Physician order-entry system, (2) stick to treatment guidelines for high-risk patients, (3) adequate ICU staffing. The perils/costs of folk wisdom:
Pills vs. IV/$100. Per use. Patient by patient, problem by problemdrug reactions, hospital caused infectionsSalt Lake Citys LDS Hospital has attacked treatmentcaused injuries and deaths. One of the secrets of LDSs success is a custombuilt clinical computer system that
may serve as a national model for how to save patient lives. Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson The VHA gets it! E.g.: Laptop at bedside calls up patient e-records from one of 1,300 hospitals. Barcoded wristband confirms meds. National Center for
Patient Safety in Ann Arbor. Docs and researchers discuss optimal treatment regimensresearch center in Durham NC. Doc measures & guidelines; e.g., pneumonia vaccinations from 50% to 84%. Blamefree system, modeled after airlines. Whats needed in the U.S. is nothing short of a medical revolution and the VHA has gone further than most any other organization to revamp its culture and systems. Rand/Source:WSJ 12.10.2001
Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to Xray to records to physician order entry.David Veillette, CEO, Indiana Heart Hospital (Healthleaders/12.2002) 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) When a plane crashes, they ask, What happened? In medicine they ask: Whose fault
was it? James Bagian, M.D. & former astronaut, now working with the VHA. Winning By Acknowledging Failures Wernher Von Braun, the Redstone missile engineer who confessed & the bottle of champagne. Award to the sailor on the Carl Vinsonfor
reporting the lost tool. Amy Edmonson & the successful nursing units with the highest reported adverse drug events. Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected 4. Information Consolidators: The Network Maestros
America has twice as many hospitals and physicians as it needs. Med Inc., Sandy Lutz, Woodrin Grossman & John Bigalke Specialty! Without having nearly the
infrastructure costs or the labor costs that a larger organization has to deal with, we can be more profitable. We can turn patients quicker, and we can have shorter lengths of stay with equal to or better outcomes.David Veillette, CEO, Indiana Heart Hospital (Healthleaders/12.2002)
The future of hospitals is murky. A combination of technological advances, managed care, and changes in Medicare reimbursement policy means that the underlying demand for inpatient services will continue to fall. Institute for the Future
Virtual health care webs force providers to focus on their areas of excellence and to invest in areas where they can generate a sustainable competitive advantage. Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide
WebMD & assigns) (or heirs 5. Genetics & Devices
Recognizing that a single misspelled gene means the difference between being poisoned and being cured was the first victory for the new science of pharmacogenetics. Newsweek (06.25.01)
Genetic data: 2X every 6 months. Pharmacogenomics could fundamentally change the nature of
drug discovery and marketing, rendering obsolete the pharmaceutical industrys practice of spending vast amounts of time and money to craft a single medicine with mass-market appeal. The Industry Standard (05.28.01) E.g., Genentechs
Herceptin, useful in 25% of advanced breast cancer cases. Would probably have been uneconomic if subjected to 9X patients in phase III clinical trials. Source: FT (11.27.01) Sequenom/David Ewing Duncan/Wired11.02 Sequenom has industrialized the SNP [single
nucleotide polymorphisms] identification process. This, Im told, is the first time a healthy human has ever been screened for the full gamut of genetic-disease markers. On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests. You cant look at humanity separate from machines; were so intertwined were almost the same species, and the difference is
getting smaller. Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22) Barrie James, Pharma Strategy Consulting: Were moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for the industry. The implications for existing business models are devastating. Allen Roses,
SVP Genetic Research, GlaxoSmithKline: minibuster. Rob Arnold, Euro head of life sciences, PWC: Once you start dealing with minority treatments, small biotechs who are more nimble and dont need $500-million-a-year drugs to make money could be at a real advantage. BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs dont work well for about half the patients for whom they are prescribed, and experts believe genetic differences are part of the reason. The technology for genetic testing is now in use. But the technique threatens to be so disruptive to the business of big drug companies it could limit the market for some of their blockbuster products that many of them are resisting its
widespread use. The Wall Street Journal (06.18.2001) Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 are in 87 F100; the 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from
1917 to 1987. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market Biotechs: Amgen, Genentech, Biogen, Genzyme, Celltech, ImClone Systems. Bioinformatics: Accelrys, Cognia, Double Twist, IBM Lifesciences, NetGenics, SAS
Institute. Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the operating table. That day may come sooner than you think. Newsweek (06.25.01)
There is no question in my mind that the future of heart surgery is in robotics. Dr. Robert Michler, OSU Med Center, upon the FDAs approval of robotic partialbypass surgery Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status: $1.3T. 40M uninsured. 90K killed and 2M
injured p.a. in hospitals. 85% treatments unproven. Cure depends on locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS primitive. Accountability & measurement nil. And everybodys mad and feels powerless: docs, patients, nurses, insurers, employers, hospital administrators and staff.
Message: (1) An unparalleled time imagination for and bold action. (2) A time of unprecedented
opportunities. (3) A time of unprecedented risk. HealthCare 21 HealthCare21: 21 Ideas for Century21 1. Hospitals kill people. (And many of those they dont kill, they
wound.) (And they deny it.) (ERRORS RULE!) And: Hustling ambulances kill pedestriansand dont save patients. 2. Doctors are spoiled bratswho dont like measurements. Or any form of interference. Docs are also cover-up artists. The REAL Hippocratic Oath: DONT RAT ON A FELLOW DOC. 3. Most prescription drugs dont workfor a PARTICULAR patient. Current drugs = Blunderbusses. 4. Think WELLNESS. Think PREVENTION.
5. THERE IS LITTLE SCIENCE IN MEDICINE. (See state to state variations country to country variations the general lack of agreed upon treatments.) 6. You could save thousands of lives (think Schindler)if you just outlawed handwritten prescriptions. 7. Detailers will disappear when GenX docs arrive. HealthCare21 (Cont.) 8. IS/IT in hospitals is sub-primitive (despite enormous
expenditures). 9. Systemic IS/IT is worselinks between docs, insurers, providers, patients. 10. ELECTRONIC MEDICAL RECORDS TO UNIFORM STANDARDS. (NOW.) (PLEASE.) 11. THE WEB WILL LIBERATE. (Info = Power.) (BELIEVE IT.) 12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e CONTROL. NOW. LEADERSHIP OF AGING PROCESS.) 13. Drug Discovery processes at Big Pharma are hopelessly
over-complicated. (???: Bye Bye Big Pharma.) 14. 90% of the healthcare fix: HARVEST THE LOW-HANGING FRUIT. They are NOT the Enemy. I have seen the enemy and it am me. Damn it. HealthCare21 (Cont.) 15. The number of U.S. un-insured is the nations #1 disgrace. That said, insured consumers are spoiled brats. They/we/me
act as if healthcare were a free good and believe that an incipient hangnail calls for at least a CAT scan or two. ANSWER: MAKE US FEEL THE PAIN. 16. Genetic engineering & biotech change EVERYTHING. (Within 15 years.) 17. New Medical Devices change EVERYTHING. (Within 15 years.) 18. IS/IT changes EVERYTHING. (Within 10 years.) 19. New Docs change EVERYTHING. (Within 10 years.)
20. New Patients change EVERYTHING. (Within 5 years.) * * HealthCare21 (Cont.) ALL THIS = ENORMOUS OPPORTUNITY.
21. The Opportunity of Several Lifetimes. (For the Bold & Brave.) HCare WILL be TOTALLY re-invented in the next two decades. (And, hey, it is our largest industry.) 24. RevGov:
Re-inventing Government. WE NEED IDEAS! Uncertainty: We
dont know when things will get back to normal. We no longer know what normal means. Ambiguity:
BMcC: (1) Hierarchy vs. Network organization. (2) NWO = Doctrine as center of gravity/source of motivation; distributed support & decisionmaking;largely self-organizing; outside the military sphere. Our military structure
today is essentially one developed and designed by Napoleon. Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff In an era when terrorists use satellite US
gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont talk to each other. phones and encrypted email, Boston Globe (09.30.2001)
From: To: Weapon v. Weapon Org structure v. Org structure
Ideas > Leadership NO: Good govt YES: EFFECTIVE Govt (in altered/ambiguous times) A Plea for
virtual [RESPONSIVE] government Agile. WALLS MUST
FALL! The W.O.G. (Work-of- Insta/ Targeted WPTs (WOW Government):
(B.H.A.G.) Project Teams (with Experiments rule!
Failures rule! Talent matters! New Heroes/
Hall of Fame IS/IT to the Max! Streamlin ed procurement (esp. IS/IT)
Bill Owens Lifting the Fog of War Case: The 1990s was a decade of multiple revolutions political, economic, technologicalthat
changed so thoroughly the way we live that the past no longer seems a good guide to the future (in fact the past seems precisely the wrong guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the militaryin a way that could reinvigorate American political, diplomatic and
economic leadership in the world for decades to come. Bill Owens, Lifting the Fog of War Our military is very good at doing things as they are supposed to be done, but it is not always good at changing the way things ought to be done. Highly professional militaries can be very good at maintaining the institutions traditions, mores and cultures in the face of rapid and important change.
Equating professionalism with automatically defending the status quo can be disastrous. This is the mindset that drives service loyalties toward narrow parochialism, and congeals organizations into brittle shells. We end up ignoring opportunities that could actually offer higher military effectiveness. Bill Owens, Lifting the Fog of War
How dare you. If you dont support us, our opponents will take advantage and use this to cut the force. CNO staffer [Flag officer] to Bill Owens, 6th Fleet Commander
Mike [Boordas] self-avowed priority was to preserve and protect the size, budget and structure of the U.S. Navyhis Navy irrespective of any other consideration because he deeply believed that the Navy was the core of Americas military capability. My view over the years had shifted toward the conviction that we in the Navy need to
implement major changes in order to become more jointto work better and more closely with the other services. Bill Owens, Lifting the Fog of War Many flaws remainedflaws not from poor performance, but from an ingrained command hierarchy and an outmoded concept of war that had taken root during World War II and then
during the cold war. Desert Storm was a joint military operation in name rather than in fact. The battlefield was divided among service components. The fiefdoms existed not only because of tradition, service rivalry and the egos of the commanders; they were also there because of technological limitations. We did not have the communications capability to do it differently. Bill Owens, Lifting the Fog of War
Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. Bill Owens, Lifting the Fog of War By combining powerful computer technology and other modern information-based systems we could make a
revitalized, leaner military force that is designed to outsee, outmaneuver and outfight any foe. --Bill Owens, Lifting the Fog of War RMA: (1) Battlespace awareness. (2) C4I. (Command, control, communications, computers &
(3) Precision force use. intelligence.) [The RMA] means creating a synergy in new weapons, sensors and communications that is made possible by the successful
melding of the technological applications with an informationage military organization. Bill Owens, Lifting the Fog of War In the second half of the twentieth century a new society of individuals emergeda breed of people unlike any the world has ever seen. Educated, informed, traveled, they work with their brains, not their bodies. They do not assume that their lives can
be patterned after their parents or grandparents. Throughout human history, the problem of identity was settled in one wayI am my mothers daughter; I am my father's son. But in a discontinuous and irreversible break with the past, todays individuals seek the experiences and insights that enable them to find the elusive pattern in the stone, the singular pattern that is me. Shoshana Zuboff & James Maxmin, The Support Economy
If you dont like change, youre going to like irrelevance even less. General Eric Shinseki, Chief of Staff, U. S. Army Old: Heavy. Seek direct contact. New: Stryker brigade. Stealth.
Avoid direct contactchoose your moment. Depend heavily on information technology, and enhanced intelligence, surveillance and reconnaissance capabilities. Source: A Different War, Peter Boyer (The New Yorker/07.01.2002) Substituting information for armor is a disconcerting notion
to a tank soldier. Soldiers will learn that battle field awareness can be as comforting as armor. Source: A Different War, Peter Boyer (The New Yorker/07.01.2002) From Tank to Future Combat System (e.g., virtual tank) Analogous to switch from circuit breaker makers to GE Industrial
Systems, or guys in brown trucks to Let Brown do it. Source: A Different War, Peter Boyer (The New Yorker/07.01.2002) VIII. NEW BUSINESS. NEW MARKETS.
25. Trends I: Women Roar. Women & the Marketspace. ?????????
Home Furnishings 94% Vacations 92% (Adventure Travel 70%/ $55B travel equipment) Houses 91% D.I.Y. (home projects) 80% Consumer Electronics 51% Cars 60% (90%) All consumer purchases 83%
Bank Account 89% Health Care 80% ???? 80% Riding Lawnmowers
2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed
1970-1998 Mens median income: +0.6% Womens median income: + 63% Source: Martha Barletta, Marketing to Women $4.8T > Japan 9M/27.5M/$3.6T > Germany
Business Purchasing Power Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women Women-owned Bus. U.S. employees > F500 employees worldwide
Source: Martha Barletta, Marketing to Women 2000-2010 55-64: 48%; 25-54: 2% 65+/2001: M, 14.6M; F, 20.5M Source: Martha Barletta, Marketing to Women
New golfers 37% Basketball 13.5M 1 in 27 (70) 1 in 3 (96) 1874? 1874 Jock Strap 1977 Jogbra 1977 ... 25K
1996 42 M Yeow! 1970 1% 2002
50% OPPORTUNITY NO. 1!* [* No shit!] 91% women:
ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women) Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect
Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities Men: Individual perspective. Core unit is me. Pride in self-reliance. Women: Group perspective. Core
unit is we. Pride in team accomplishment. Source: Martha Barletta, Marketing to Women FemaleThink/ Popcorn Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons.
He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections. Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They
usually dont like asking where things are. Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly hes ready to buy. For a man, ignoring the price tag is almost a sign of virility. Paco Underhill, Why
We Buy* (*Buy this book!) Shopping: A Guys Nightmare or a Girls Dream Come True? Buy it and be gone vs. Hang out and enjoy the
experience Source: The Charleston [WV] Gazette/06.22.2002 Antaun Hughes, Capital High School, Women enjoy going through the actual process of everything, while guys like
to get straight to the point. on M-F shopping habits: Source: The Charleston [WV] Gazette How Many Gigs You Got, Man? Hard to believe Different criteria Every research study weve done indicates that women really care
about the relationship with their vendor. Robin Sternbergh/ IBM Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to
womens needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women) Read This: Barbara & Allan Peases Why Men Dont Listen & Women Cant Read Maps
It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned
sensory skills than men. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Resting State: 30%, 90%: A woman knows her childrens friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short
people also living in the house. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps As a hunter, a man needed vision that would allow him to zero in on targets in the distance whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can
find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Female hearing advantage contributes significantly to what is called womens intuition and is one of the reasons why a woman can read
between the lines of what people say. Men, however, shouldnt despair. They are excellent at imitating animal sounds. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Senses Vision: Men, focused; Women,
peripheral. Hearing: Womens discomfort level I/2 mens. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women Sensitivity to differences: Twice as
many card stacks. More contextual, holistic. People powered: Age 3 days, baby girls 2X eye contact. Source: Martha Barletta, Marketing to Women Barbara & Allan Peace, Why Men Dont Listen & Women Cant Read Maps: Women love to
talk. Men talk silently to themselves. Women think aloud. Women talk, men feel nagged. Women multitask. Women are indirect. Men are direct. Women talk emotively, men are literal. Men listen like statues. Boys like things, girls like people. Boys compete, girls cooperate. Men hate to be wrong. Men hide their emotions.
When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap. Barbara & Allan Peace, Why Men Dont Listen & Women Cant Read Maps
Stress* ** Men: Fight or flee Women: Seek the company of friends *Source: UCLA, Female Response to Stress: Tend and Befriend, Not Fight or Flight/Psychological Review **90% of stress research: men We Really Dont Get It!
Review of Unfaithful: the latest entry in the category of male directors clueless fantasies concerning what women fantasize about in their nonexistent free time. Source: Julie Iovine, NYT (05.19.2002)
Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave their mate. WOMEN: women controlled by the men in their lives, who would rather be dead than oppressed. Source: Judy Rosener, Americas Competitive Secret
[The Hollywood scripts that men write tend to be direct and linear, while womens compositions have many conflicts, many climaxes, and many endings. Helen Fisher, The First Sex: The Natural Talents of Women and How They Are
Changing the World] 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 [I only really understand myself, what Im really thinking and feeling, when Ive talked it over with my circle of female friends. When days go by
without that connection, I feel like a radio playing in an empty room. Anna Quindlen] Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* TP/Furniture: Tech Specs vs.
Soul. ** *Redwood (UK) **High Point furniture mart (04.2002) Initiate Purchase Men: Study facts & features. Women: Ask lots of people for input.
Source: Martha Barletta, Marketing to Women Storytelling: Men start with the headline. Women start with the context. Source: Martha Barletta, Marketing to Women Tomboy Tools. E.g.:
smaller, lighter in weight. Tupperware party model. Darcy Winslow is a leading figure in Nike Goddess, a companywide grassroots team whose goal is a once-and-for-all shift in how a high-testosterone outfit sells to, designs for, and
communicates with women. Fast Company/08.2002 Women werent comfortable in our stores. So I figured out where they would be comfortablemost likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have
furniture, not fixtures. Above all, I didnt want it to be girlie. John Hoke, designer, Nike Read This Book EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand
The Connection Proclivity in women starts early. When asked, How was school today? a girl usually tells her mother every detail of what happened, while a boy might grunt, Fine. EVEolution What If
What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners? What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with todays skills?
EVEolution The New New Jiffy Lube In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the lets get it fixed fast, no conversation required experience. New JL: Control over her environment.
Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability. EVEolution Lowes Gets it.
1989: 13%/lumber shop 2002: >50% Yes!: Crest Spinoff Targets Womencover story, Ad Age/06.03.02 Crest Rejuvenating Effects.
Chicks in charge team. $50M launch. Packaging. Taste. Features. Mattel Sees Untapped Market for Blocks: Little GirlsHeadline, WSJ/04.06.02 Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello
with interconnecting plastic squares, balls, triangles, squiggles, flowers and sticks, in pastel colors and with rounded cornerswill go beyond Legos linear play patterns. Women dont buy They
join them. brands. EVEolution Not !
Year of the Woman Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement
Strategy Culture Vision Leadership THE BRAND ITSELF! Honey, are you sure you have
the kind of money it takes to be looking at a car like this? STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick.
My game is haranguing business leaders about my fact-based conviction that womens increasing power leadership skills and purchasing power is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Alto resident THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters
If we are single, they say we couldnt catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldnt keep him. If we are widowed, they say we killed him. Kathleen Brown, on the joys of female political candidacy
27 March 2000: email to TP from Shelley Rae Norbeck I make 1/3rd more money than my husband does. I have as much financial pull in the relationship as he does. Id say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to spend and nobody wants it! Psssst! Wanna see my porn collection? Norwegian Law: Boards must have
at least 40% women. Duh! We want our associate population to mirror our customer population at every level, from the executive
suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood its in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. Thats what Super Saver is. All the signage is in both languages. Theres a 100 percent Spanish-speaking staff in the store.Larry Johnston, CEO, Albertsons
Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership Team In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. I have a responsibility to do the best we can for shareholders. * **
*Source: New York Times/05.05.02 **Wouldnt you love to watch him tell that face-to-face to Margaret Thatcher or Carly Fiorina? (I would.) Ad from Furniture /Today (04.01): MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that Way
Presenting Experts: M = F= ?? 16; (94% = 272)
Please just one couch or chair where my feet hit the ground! Owner,
5 furniture stores, UK Stupid! Stupid: Amazing, now that I think about it. A bunch of guys --developers, architects, contractors, engineers, bankers--sitting
around designing shopping centers. And the end users will be overwhelmingly women! Instructions: 1. Purchase ticket to symphony 7:30 p.m. show. 2. Drink three large bottles of water between 3 p.m. and 7 p.m.
3. X-dress. 4. Wait in queue at Ladies at Intermission. 5. Realize what total wretches you are. 6. Seize a microphone and apologize publicly to every woman in the hall. Customer is King:
4,440 Customer is Queen: 29 F.Y.I. Women Beat Men
at Art of Investing Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are in and out of stocks more often; women choose Purchasing Patterns Women: Harder to convince; more
loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women Investment Club Returns Women-only clubs 1997 17.9% Mixed 17.3% Men-only 15.6% Source: National Assoc. Investors
Value Line: Top State* Investment Clubs 2000 8 All male 19 Coed 22 All FEMALE * VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots! Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe theyre smarter than the market.
Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives. Source: Newsweek 01.08.01 Notes to the CEO --Women are not a niche; so get this out of the Specialty Markets group. --The competition is starting to catch on.
(E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.) --If you dip your toes in the water, what makes you think youll get splashy results? --Bust through the walls of the corporate silos. --Once you get her, dont let her slip away. --Women ARE the long run! Source: Martha Barletta, Marketing to Women
1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 4. Women buy lotsa stuff. 5. WOMEN BUY A-L-L THE STUFF. 6. Womens Market = Opportunity No. 1.
7. Men are (STILL) in charge. 8. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 9. Womens Market = Opportunity No. 1. 10. NO SHIT. 26. Trends II: Boomer
Bonanza/ Godzilla Geezer. 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%) Aging/Elderly $$$$$$$$$$$$ Im in charge!
NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same? USN&WR Cover/06.01 The Latest Golden years Trend:
Going Back to College Headline, Newsweek/06.10.02 Member Growth: 1987 1997 18 34: 26% 35 49: 63%
50+: 118% Source: IHRSA 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users
41% new cars/48% luxury cars $610B healthcare spending/ 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Advertisers pay more to reach the kid
because they think that once someone hits middle age hes too set in his ways to be susceptible to advertising. In fact this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywoods cult of youth.James Surowiecki (The New
Yorker/04.01.2002) Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Marketers attempts at reaching those over 50 have been miserably unsuccessful. No markets motivations and needs are so poorly understood.Peter Francese, founding publisher, American Demographics
Households headed by someone 40 or older enjoy 91% ($9.7T) of our populations net worth. The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category. Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders The mature market cannot be dismissed as entrenched in its brand loyalties. Carol Morgan &
Doran Levy, Marketing to the Mindset of Boomers and Their Elders Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may
enjoy 20 or 30 years of life. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders While the average American age 12 or older watched at least five movies per year in a theater, those 40 and older were the most frequent moviegoers, viewing 12 or
more a year.Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-yearolds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But
who in the fashion industry is currently pursuing this market? Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders Take the Road Less TraveledAdvertising Age headline re Sony, upon targeting Zoomers, the
neglected 34% of its customers who are age 50+ Stupid! Age Power will rule the 21 century, and we are woefully
unprepared. st Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old No: Target Marketing Yes:
Target Innovation & Target Delivery Systems Women! Boomers! Design!
The Royal Tenenbaums The New Pillow Talk: Specialty Pillows Are Big Sellers as Achy Boomers Seek Sleep WSJ (03.22.2002)
Nice Job Title, Frito-Lay! Rebecca Johnson, VPEthnic and Urban Marketing 27. Trends III:
Green = $$$$$ $ Of all the ways the company will be judged over the next decade, none will be greater than our response to the issue of
climate change. William Clay FORD Jr. BP has not just met its targetto reduce emissions of greenhouse gases by 10 percent below 1990 levels [more stringent than Kyoto]it had
exceeded it, done so eight years ahead of schedule and with no net economic cost. In fact, because of energy efficiency measures, the emissions reductions amounted to a net gain of $600 million. The New York Times Magazine/12.08.2002 50% to 36%:
Protect Environment > Economic Growth. And #3: GREEN?????: 58% to 34%: Protect Plants & Animals > Preserve Private Property Rights.
E.g.: Genetically Altered Food Would eat: M, 71%; F, 50% Give to children: M, 59%; F, 37% Pay more for non-altered: M, 35%; F, 47% Source: www.pulse.org & USA Today Three Most Important Upgrades
Home Purchasers Consider Energy efficiency/83% Kitchen cabinets/66% Indoor air quality/50% Source: Professional Builder The U.S. building and construction industry reinvest only about 1 percent
of their revenue in R & D, compared to 10 to 20 times that for cutting edge industries like electronics and pharmaceuticals. No wonder their techniques and materials are so antediluvian. Paul Hawken et al., Natural Capitalism No: Target Marketing
Yes: Target Innovation & Target Delivery Systems Womens [Aging,Green] Market: Why
Tough Encompassing Attitude CULTURAL! Of all the ways the company will be judged over the next decade, none will be
greater than our response to the issue of climate change. William Clay FORD Jr. No: Target Marketing
Yes: Target Innovation & Target Delivery Systems 28. Trends IV:
Think Global! THE EIGHT RULES Rule #1 Theres no such
thing as too small to be global. [GET A LIFE.] Rule #2 If it is [truly] good then its good enough for
THE WORLD. Rule # 3 When? Now. Rule #4
Hang out vigorously! Rule #5 Seek Talent! Send Talent!
Message(s) ABB, Shell ELITE Global Cadre Genuinely Global BOARD Rule #6 Glom onto a [modest-sized]
partner who loves/ gets you! Rule #7 Tailor!! [But dont give away the store.] Rule #8
Phil Crosby notwithstanding, youll not [likely] get it right the first time! IX. NEW BUSINESS. NEW LEADERSHIP.
29. The Passion Imperative: Leadership The 50
The Basic Premise. 1. Leadership Is a Mutual Discovery Process. I dont
know. Leaders-Teachers Do Not Transform People! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostlycaveat: they dont engage unless theyre mad about something) express their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachersleaders) had never dreamed existedand then the leaders-mentors-teachers (6) applaud like hell, stage photo-ops, and ring the church bells 100 times to commemorate the bravery of their followers explorations! The
Leadership Types. 2. Great Leaders on Snorting Steeds Are Important but Great Talent Developers (Type I Leadership) are the Bedrock
of Organizations that Perform Over the Long Haul. 25/8/53* (*Damn it!) 3. But Then Again, There Are Times When This Cult of Personality
(Type II Leadership) Stuff Actually Works! A leader is a dealer in hope. Napoleon (+TPs writing room pics)
4. Find the Businesspeople! (Type III Leadership) I.P.M. (Inspired Profit Mechanic)
5. All Organizations Need the Golden Leadership Triangle. The Golden Leadership Triangle: (1) CreatorVisionary (2) Talent
Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic. 6. Leadership Mantra #1: IT ALL DEPENDS!
Renaissance Men are a snare, a myth, a delusion! 7. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0. Walter Alston1AB. Tony LaRussa 132 games, 6 seasons. Tommy LasordaP, 26 games. Sparky Anderson1 season.
The Leadership Dance. 8. Leaders SHOW UP! P.S.
5,000 miles for a 5 min. meeting! Mark McCormack: 9. Leaders LOVE the
MESS! Im not comfortable unless Im uncomfortable. Jay Chiat
If things seem under control, youre just not going fast enough. Mario Andretti 10. Leaders
DO! The Kotler Doctrine: 1965-1980: R.A.F. (Ready.Aim.Fire.) 1980-1995: R.F.A. (Ready.Fire!Aim.)
1995-????: F.F.F. (Fire!Fire!Fire!) 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 If it works, its obsolete. Marshall McLuhan 12. BUT Leaders
Know When to Wait. Tex Schramm: The too hard box!
13. Leaders Are Optimists. Hackneyed but none the less LEADERS SEE CUPS AS HALF
FULL. true: [Ronald Reagan] radiated an almost transcendent happiness. Half-full Cups:
Lou Cannon, George (08.2000) 14. Leaders DELIVER! Leaders dont want to win.
Leaders need to win. #49 It is no use saying We are doing our best. You have got to
succeed in doing what is When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people playedor does she keep
wandering back to strategy or philosophy? Larry Bossidy, Honeywell/AlliedSignal, in Execution 15. BUT Leaders Are Realists/Leaders Win Through LOGISTICS!
The Gus Imperative! 16. Leaders FOCUS!
To Dont List 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? Its Relationships,
Stupid. 19. Leaders Trust in TRUST! Credibility
! $1.00 for competence. $249.00 for attitude/ honesty. Bonus/TP:
If It Aint Broke Break It. 20. Leaders FORGET!/ Leaders DESTROY!
Cortez! Leaders dump the ones who brung em Nokia, HP, 3M, PerkinElmer, Corning, etc.
WCW Monday Nitro was our top rated show by more than double anything else [and the top rated show on basic cable], and we dumped it! Can you name another network that dropped its top-rated show? I dont know if consumers noticed, but it said everything to our staff.Scot Safon, on the successful reinvention of TNT
to embody its new vision, TNT: We know drama. 21. 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) 22. Leaders
HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers
Wayne Burkan, Wide Angle Vision WE BECOME WHO WE HANG WITH! Leaders know 23. Leaders Make
[Lotsa] Mistakes and MAKE NO BONES ABOUT IT! Fail faster. Succeed sooner. David Kelley/IDEO
No matter. Try again. Fail again. Fail better. Samuel Beckett The Silicon Valley of today is built less atop the spires of earlier
triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo (03.02) 24. Leaders Make BIG MISTAKES! Reward excellent
failures. Punish mediocre successes. Phil Daniels, Sydney exec (and, de facto, Jack) Create. 25. Leaders Know that THERES MORE TO LIFE THAN LINE EXTENSIONS.
Leaders Love to CREATE NEW MARKETS. No one ever made it into the Business Hall of Fame on a record of line extensions. They [consumer goods company]
have acquired a bunch of products, which is what everyone is doing. But whats the point, the message, the story line, the Big Idea that makes it all hang together? Exec, major consumer goods company
I never, ever thought of myself I was interested in creating things I would be proud of. Richard Branson as a businessman. 26. Leaders Pursue
DRAMATIC DIFFERENCE! 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: intent to purchase 100%; unique 0% to 5%) Source: Jump Start Your Business Brain, Doug Hall 26A. 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! Herman Edwards: I picked up one of those Jets books and I told them, What you do as a football team is your legacy. When youre 80 years old, what youve done will be in this book and no one can
take that away from you. Your grandkids, your kids after that, they will know what you did. Its about leaving your name in stone. Source: The New York Times (12.31.02) COL Richard Hallock (to incoming SECDEF James Schlesinger): You must understand that if you want to leave a legacy it is vital for you to make a quick
decision about what you want the legacy to be because after several months you become so caught up in the business of the Pentagon, so overwhelmed, that it will be too late. Pick a few projects and put the full weight of the office behind them. Guide the projects. Nurture them. Know from the very beginning that this will be your legacy. Force them through the bureaucracy. BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram) TPs least favorite term: Stewardship* *I want to have exploited resources, not conserved resources CEO Assignment2002 (Bermuda): Please leap forward to 2007, 2012, or
2022, and write a business history of What will have been said about your company during your tenure? Bermuda. Ah, kids: What is your vision for
the future? What have you accomplished since your first book? Close your eyes and imagine me immediately doing something about what youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
Ideas > Leadership Today the problem is not how to produce more to sell more. The fundamental question is that of the products right to exist. And it is the designers
right and duty to question the legitimacy of the product. Philippe Starck 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. TPs least favorite term: Stewardship* *I want to have exploited resources, not conserved resources
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? NO: Good govt YES: EFFECTIVE Govt (in altered/ambiguous times) By combining powerful
computer technology and other modern information-based systems we could make a revitalized, leaner military force that is designed to outsee, outmaneuver and outfight any foe. --Bill Owens, Lifting the Fog of War 27. Leaders Push Their
W-a-y Up the Value-added/ Intellectual Capital Chain Organizations 09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers Consulting business! 28. Leaders LOVE the New Technology!
100 square feet 29. Needed? Type IV Leadership: Technology Dreamer-True Believer
The Golden Leadership Quadrangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer Talent.
30. When It Comes to TALENT Leaders Always Swing for the Fences! Message: Some
people are better than other people. Some people are a helluva lot better than other people. 31. Leaders
Manage Their EVP/Internal Brand Promise. MantraM3 Talent = Brand
32. Leaders LOVE RAINBOWS for Pragmatic Reasons. Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mlange, the adulterated, the blemished, the rough, the black-and-blue, the
mix-and-match these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations. G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
Passion. 33. Leaders Out Their PASSION! Create a cause, not a
business. G.H.: Vision is a love affair with an idea. Boyd Clarke & Ron Crossland, The Leaders Voice
A winning attitude takes a lot of hard, It begins with an assumption that we do have a choice, we can make a difference among others and within ourselves.James Cramer, The Greenway
honest work. Group & former CEO of the AIA ! 34. Leaders Know: ENTHUSIASM BEGETS
ENTHUSIASM! BZ: I am a Dispenser of Enthusiasm! 34A. Leaders Are
in a Hurry The Urgency Factor: LEADERS have a distorted sense of time. (E.g.: Rummy thinks he asked months ago it was
the day before yesterday.) 35. Leaders Focus on the SOFT STUFF! Soft Is Hard
- ISOE Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TPs final words: CYNICISM SUCKS.] The references were there; the But there was no fire, no foot halfway over the starting line eager to sprint down the track to
success.James Cramer, The Greenway portfolio was dazzling. Group & former CEO of the AIA (on the rejection of a famous firm) 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 If youre not
pissing people off, youre not making a difference! 39. Leaders Give RESPECT!
It was much later that I realized Dads secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you
were and what you had to say. Sara Lawrence-Lightfoot, Respect 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 You cant lead a cavalry charge if you think you look funny on a horse. John Peers, President, Logical Machine Corporation
Find something small that you can turn around. If youre on a 9game losing streak, you need to start with one great inning.Rudy 43. Leaders
Are The Brand The BRAND lives (OR DIES) in the minutiae of the leaders momentto-moment actions.
44. Leaders GREAT STORY! Have a Leaders dont just make products and make decisions.
Leaders make meaning. John Seeley Brown Introspection. 45. Leaders
Enjoy Leading. Warren, I know you want to be president. But do you want to do president? [Bertelsmans Reinhard]
Mohn wasnt a creative type. What got him juiced was the art of running an organization and motivating the people who work there. Fortune/05.27.2002 46. Leaders KNOW
THEMSELVES. Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (Leaders who are not
comfortable with themselves become petty control freaks.) 47. But Leaders have MENTORS. Upon
having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* The Gospel According to TP: (*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.) 48. Leaders Take Breaks. Zombie! Zombie! Zombie! Zombie!
The End Game. 49. Leaders ??? : Hire smart go
bonkers have grace make mistakes love technology start all over again. LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES
50. Leaders Know WHEN TO LEAVE! XI. NEW BUSINESS. NEW RULES.
30. Toms 60TIBs* *TIB = This I Believe 1. TECHNICOLOR RULES! (Passion Moves Mountains!) 2. Audacity Matters!
3. Revolution Now! 4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!) 6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you cant take
Silicon Valley out of the boy!) 7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AINT SEEN NOTHIN YET!) 9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT OR DIE!
10. Big Sucks. (Mostly.) (VERY Mostly.) 11. Permanence Is a Snare & a Delusion. (Forget Built to Last. Its Yesterdays Idea.) 12. Kaizen (Continuous Improvement) Is Dangerous. 13. DESTRUCTION RULES! 14. Forget It! (Learning = Easy. Forgetting =
Nigh on Impossible.) 15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.) 16. Boring Begets Boring. (Cool Begets Cool.) 17. Think Portfolio. (Were All V.C.s.) 18. Perception Is All There Is. (Insiders ALWAYS overestimate the Radicalism of
What Theyre Up To.) 19. Action ALWAYS Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns! 21. Haste Makes Waste. (SO GO WASTE!)
22. Screw-ups are the Mark of Excellence. (Do It Right the First Time Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!) 24. TALENT TIME! (He/She Who Has the Best Roster Rules!) 25. Re-do Education. Totally. (FOSTER CREATIVITY NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)
26. Diversitys Hour Is Now! 27. SHE Is the Best Leader! 28. MARKETING MANTRA: Embrace the BIG THREE Demographics. (1) SHE is the Customer. (For everything.) (2) Rapidly Aging Boomers Have ALL THE MONEY. (3) Green Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY Gets It.) (Mere Programs Will Not Suffice.)
29. Re-boot Healthcare. (UNDERSTATEMENT.) 30. WHAT ARE WE SELLING? Experiences & Solutions > Quality & Satisfaction. (The Traditional Value-added Equation Is Being Set on Its Ear.) 31. DESIGN = New Seat of the Soul. 32. Branding Is for EVERYONE. He Who Has the BEST STORY Takes Home the
Marbles. 33. DRAMATIC DIFFERENCE = Only Difference. 34. WORDS/Language Matters a Lot. (E.g.: Three Hearty Cheers for Wow!) 35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: Are You Proud of It?) 36. eALL. (IS/IT: Half-way = No Way.) 37. DREAM Big! DREAM Enormous.
DREAM Gargantuan. (These Are XXXL Times.) 38. THINK MIKE! (Michelangelo: The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.) 39. There Is Only ONE BIG ISSUE. Crossfunctional Communication. 40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF UN-DUMBING.)
41. Beautiful Systems Are BEAUTIFUL. 42. The WHITE-COLLAR REVOLUTION Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT OR EXTINCT! 44. Powerlessness Is a State of Mind! Think: King. Gandhi. DeGaulle. 45. Pursue Adventure in Every Task.
46. EXCELLENCE Is a State of Mind. (Excellence Takes a Minute.) (No Bull.) 47. SHOW UP! (If You Care, Youre There.) 48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your TO DONT List.) 49. LIFE IS SALES. (The Rest Is Details.) 50. Boss Mantra #1: I DONT KNOW. (I Dont Know = Permission to Explore.)
51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (Manager = Hurdle Removal Professional.) 52. Epitaph from Hell: He Woulda Done Some Truly Cool Stuff But His Boss Wouldnt Let Him. 53. Change Takes However Long You Think It Takes. (Eschew Incrementalism.)
54. Respect! (Rule 1: Dont Belittle!) 55. Thank You Trumps All! 56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.) 57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.) 58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.)
59. DISPENSE ENTHUSIASM! 60. FUN Is Not a 4-Letter Word. So, too JOY. (And GRACE.) Have you changed civilization today? Source: HP banner ad
Thank You !