2000 sc johnson global forum honoring our heritage/ mastering our future hong kong 17october2000
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2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000. When Mike Charles gets lonely, who does he talk to …. - PowerPoint PPT PresentationTRANSCRIPT
2000 SC JohnsonGlobal Forum
Honoring Our Heritage/Mastering Our Future
Hong Kong17October2000
When Mike Charles gets lonely, who does he talk to …
Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2%
milk. Tap keypad on door. Webvan.com delivers in hours. Next, he sends his
washer an email …Source: Business Week (09.00)
Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
NOW THAT’S 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
“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)
“We are in a
brawl with no rules.”
Paul Allaire
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge customers on the attack.
2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology
and products our customers need.4. Success is achieved by leading change,
not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“It used to be that the big
ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional
Venture Partners)
Progressive
“We don’t sell insurance anymore.
We sell speed.” – Peter Lewis
Digital cameras, wireless Net links,
etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!
Source: Business Week (09.00)
Tom Peters Seminar2000
Brand Everything:Distinct or Extinct!
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut … 10,000 Jobs”
“Middle-level and senior managers are expected to be
the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)
White Collar Revolution!
The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
Cisco, Dell =
Brand-owning companies who sell Customer
Satisfaction
Source: David Schneider & Grady Means, MetaCapitalism
RR on “Assetless” [J.B.] Sara Lee
“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available
with insights into the customer’s individual needs
and preferences.”
Advance Paradigm
Data on 165,000,000 prescriptions per year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)
Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
So what will be the Basic Building
Block of the New Org?
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Measures
–WOW!–Beauty!–Raving Fans!–Impact!
Brand Inside
Brand You: Distinct …
or Extinct
DISTINCT … OR EXTINCT!
“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”
Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2000
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Finishing SkillsEntrepreneurial Instinct
CEO/Leader/BusinesspersonMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
Invent. Reinvent. Repeat.
Source: HP banner ad
Brand Inside
Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“Seller’s Market”: Tomorrow’s Headline*
“Molecular biologists are up 3 points, economists
down 1/4, in moderate trading”
*futureWEALTH, Stan Davis and
Christopher Meyer
From “1, 2 or 3” [JW] to … “Best talent in each
industry segment to build best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH
INITIATIVEE.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent (05.17.00)
“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)
“Talented people are less likely to wait their turn. We used to
view young people as trainees; now they are authorities. Arguably
this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
“Where do good new ideas come from? That’s 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 mélange, 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
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
Women and new-economy
management …
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s Stuff = New Economy Match
Improv skillsRelationship-centric
Less “rank consciousness”Self determinedTrust sensitive
IntuitiveNatural “empowerment freaks” [less
threatened by strong people]Intrinsic [motivation] > Extrinsic
“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 day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
“Tomorrow belongs to women.”
Helen Fisher, The First Sex: The Natural Talents of Women and How They Are
Changing the World
Mantra2000
Talent = Brand
Brand Inside
Brand Action:Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
THE IDEA
“4Fs”: Find a Fellow
Freak Faraway
Heart of the Matter
F2F!*
*Freak to Freak … or K2K [Kook to Kook]
World’s Biggest Waste …
Selling “Up”
BOTTOM LINE
The Enemy!
Epitaph from Hell … Epitaph from Hell …
Joe T. Jones Joe T. Jones
1942 - 20001942 - 2000
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
Characteristics of the “Also Rans”
“minimize risk” “respect the chain of command” “support the boss” “make budget”
Source: Fortune on “most admired global corporations”
N.W.O.: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are
for fools.”)• I love “Yes men”• Self-contained
• Seat 9B, UA233• Address: [email protected]• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal
as breathing• I love Misfits!• I love partners
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Outside
The Death Knell for Ordinary:
Pursuing Difference!
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
The “10X/10X Phenomenon”
10 Times Better/
10 Times Less Different
Brand Outside
Strategy 1:
Lead the Customer!
“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing.
Companies should be idea-led and consumer-
informed.”Doug Atkin, partner,Merkley Newman Harty
“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
Brand Outside
Strategy 2:Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.30.2000/1221AM:
2,461,940,629
www.cyveillance.com
10.15.2000/0217AM:
2,797,588,916
46 days, 1 hour, 56 minutes …
+335,648,287
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin:65%; Net margin: 28%
Savings in service and support from customer self-management: $500M
COMMUNITY SERVICES!/ CUSTOMER CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
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
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
RADICAL STRATEGIES
REQUIRED
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
SUMMARY: REINVENT
EVERYTHING
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s 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 LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
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,
bottlenecked-communication, six-layer
organization.
A DREAMER’S MEDIUM!
“There is no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams you could never have imagined before!
Brand Outside
Strategy 3: Fighting Back via
Systems Integration!
THE CASE
GM/Ford/DaimlerChrysler (02-27)
Covisint$240B (+$500B)
I.P.O.
Goal?
Drive profits to zero!*
*Remember AMR and “dynamic pricing.”
Message: “BOX” SELLERS LOSE!
THE RESPONSE
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers
Consulting bus! (31,000 bods)
“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
Brand Outside
Strategy 4:
Design Matters!
All Equal Except …
“At Sony we assume that all products of our competitors have basically the same
technology, price, performance and
features. Design is the only thing that differentiates one product from another in the
marketplace.”Norio Ohga
“We don’t have a good language to talk about this kind of thing. In most people’s
vocabularies, design means veneer. … But to me, nothing could be further from the
meaning of design. Design is the fundamental soul
of a man-made creation.”Steve Jobs
Lady Sensor, Mach3, and …
$70M on developing the OralB CrossAction toothbrush
23 patents, including 6 for the packaging
Source: www.ecompany.com [06.00]
TARGET … “the champion of America’s new design
democracy” (Time)
Design “is” … WHAT &
WHY I LOVE. LOVE.
Design “is” … WHY I
GET MAD. MAD.
Design is never neutral.
B-I-G …hypothesis: DESIGN is the principal difference between love and
hate!
Brand Outside
Strategy 5:
It’s the Experience!
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater & 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
“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
PlotWilliams Sonoma = 6 [was 10]
Crate & Barrel = 8Sharper Image = 9+
Smith & Hawken = 8+Vermont Country Store = 8+
Garnet Hill = 9L.L. Bean = 5 [was 9+]
Land’s End = 7+Colonial Williamsburg = ?
Brand Outside
Strategy 6:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 80%Consumer Electronics … 51%
Cars … 50%+/80%Etc.
Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family
healthcare, finances, education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9M/27.5M/$3.6T > Germany
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!
Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same way, don’t communicate the same
way, don’t buy for the same reasons.”
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,
they make connections.”
“Men seem like loose cannons. Men always move faster through a store’s
aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants,
pick something up, and then, almost abruptly he’s ready to buy. … For a
man, ignoring the price tag is almost a sign of virility.”
Paco Underhill, Why We Buy* (*Buy this book!)
Marketing to Women: Help Them Save Time!
80% … work86% … cook
58% … run errands with kids38% … take child to school
21% … go to the gym21% … take outside classes
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
Weight Watchers International “Model”
“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 today’s
skills?”
EVEolution
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
Enterprise Reinvention!
RecruitingHiring/Rewarding/ Promoting
Structure Processes
MeasurementStrategyCulture 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?”
“Excuse me, doctor, but it’s my neck that’s
in pain!”
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS
SEMINAR. [PLEASE: THINK ABOUT IT!]
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s 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 Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
Speaking of Enormous
[Missed] [Huge] Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44, stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is stupid, stupid!
2000-2010 Stats
18-44: -1%55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Priorities: Aging/“Elderly”
Experiences … Convenience … Comfort
… Access … Respect!
“Such a critical mass of older women with a tradition
of rebellion and independence and a way of
making a living has not occurred before in history.”
Gerda Lerner, historian
Brand Outside
Strategy 7:
BRAND POWER!
Brand It! Now, More Than Ever!
“The increasing difficulty in differentiating between products and
the speed with which competitors take
up innovations will assist in the rise and rise of the brand.”
Gillian Law and Nick Grant, Management [New Zealand]
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
to how we work with others. Companies will thrive on the basis of their stories and
myths. Companies will need to understand that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander