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

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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 Presentation

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Page 1: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

2000 SC JohnsonGlobal Forum

Honoring Our Heritage/Mastering Our Future

Hong Kong17October2000

Page 2: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

When Mike Charles gets lonely, who does he talk to …

Page 3: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 4: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 5: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 6: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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)

Page 7: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“We are in a

brawl with no rules.”

Paul Allaire

Page 8: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 9: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“It used to be that the big

ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional

Venture Partners)

Page 10: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 11: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

Page 12: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Page 13: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

Page 14: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 15: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

White Collar Revolution!

Page 16: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

Page 17: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Assetless Company”

John Bryan, CEO, on selling all Sara Lee’s manufacturing

Page 18: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

Page 19: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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.”

Page 20: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 21: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Inside

Brand Work: The Professional Service

Firm Model & The WOW Project

Page 22: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

So what will be the Basic Building

Block of the New Org?

Page 23: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

Page 24: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

The Raw Material …

The WOW Project!

Page 25: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Page 26: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

Page 27: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Inside

Brand You: Distinct …

or Extinct

Page 28: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 29: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 30: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Invent. Reinvent. Repeat.

Source: HP banner ad

Page 31: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Inside

Brand Talent: The Great War for Talent

Page 32: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

Page 33: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 34: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 35: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 36: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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)

Page 37: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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)

Page 38: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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)

Page 39: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 40: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 41: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 42: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Women and new-economy

management …

Page 43: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Page 44: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 45: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 46: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

Page 47: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Tomorrow belongs to women.”

Helen Fisher, The First Sex: The Natural Talents of Women and How They Are

Changing the World

Page 48: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Mantra2000

Talent = Brand

Page 49: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

Page 50: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

Page 51: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

THE IDEA

“4Fs”: Find a Fellow

Freak Faraway

Page 52: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Heart of the Matter

F2F!*

*Freak to Freak … or K2K [Kook to Kook]

Page 53: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

World’s Biggest Waste …

Selling “Up”

Page 54: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

BOTTOM LINE

The Enemy!

Page 55: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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!

Page 56: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations”

Page 57: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 58: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Page 59: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

The Death Knell for Ordinary:

Pursuing Difference!

Page 60: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

Page 61: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 62: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

Page 63: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 1:

Lead the Customer!

Page 64: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 65: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 66: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 2:Use E-Commerce to

Re-invent Everything!

Page 67: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

OVERVIEW

Page 68: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

www.cyveillance.com

08.30.2000/1221AM:

2,461,940,629

Page 69: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

www.cyveillance.com

10.15.2000/0217AM:

2,797,588,916

Page 70: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

46 days, 1 hour, 56 minutes …

+335,648,287

Page 71: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 72: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

COMMUNITY SERVICES!/ CUSTOMER CONTROL!

Page 73: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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)

Page 74: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 75: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Page 76: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

Page 77: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

RADICAL STRATEGIES

REQUIRED

Page 78: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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]

Page 79: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

SUMMARY: REINVENT

EVERYTHING

Page 80: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 81: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Message: eCommerce is not a technology play! It is a

relationship, partnership, organizational and

communications play, made possible by new

technologies.

Page 82: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Message: There is no such thing as an effective B2B or

Internet-supply chain strategy in a low-trust,

bottlenecked-communication, six-layer

organization.

Page 83: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

A DREAMER’S MEDIUM!

Page 84: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 85: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

I’net …

… allows you to dream dreams you could never have imagined before!

Page 86: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 3: Fighting Back via

Systems Integration!

Page 87: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

THE CASE

Page 88: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

Page 89: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

Page 90: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Message: “BOX” SELLERS LOSE!

Page 91: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

THE RESPONSE

Page 92: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

Page 93: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

09.11.2000: HP bids $18,000,000,000

for PricewaterhouseCoopers

Consulting bus! (31,000 bods)

Page 94: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“These days, building the best server isn’t enough. That’s the

price of entry.”

Ann Livermore, Hewlett Packard

Page 95: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

Page 96: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

E.g. …

UTC/Otis + Carrier: boxes to “integrated building systems”

Page 97: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 4:

Design Matters!

Page 98: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 99: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 100: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Lady Sensor, Mach3, and …

$70M on developing the OralB CrossAction toothbrush

23 patents, including 6 for the packaging

Source: www.ecompany.com [06.00]

Page 101: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

TARGET … “the champion of America’s new design

democracy” (Time)

Page 102: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Design “is” … WHAT &

WHY I LOVE. LOVE.

Page 103: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Design “is” … WHY I

GET MAD. MAD.

Page 104: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Design is never neutral.

Page 105: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

B-I-G …hypothesis: DESIGN is the principal difference between love and

hate!

Page 106: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 5:

It’s the Experience!

Page 107: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 108: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 109: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 110: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

Page 111: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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 = ?

Page 112: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 6:

Women Rule!

Page 113: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 80%Consumer Electronics … 51%

Cars … 50%+/80%Etc.

Page 114: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 115: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Page 116: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Yeow!

1970 … 1%

2002 … 50%

Page 117: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

OPPORTUNITY

NO. 1!

Page 118: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

Page 119: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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.”

Page 120: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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!)

Page 121: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 122: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

Page 123: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

Page 124: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 125: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 126: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Women don’t buy

brands. They join them.”

Faith Popcorn, EVEolution

Page 127: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Enterprise Reinvention!

RecruitingHiring/Rewarding/ Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

Page 128: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Honey, are you sure you have the kind of money it takes to be looking at a car like

this?”

Page 129: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Excuse me, doctor, but it’s my neck that’s

in pain!”

Page 130: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. [PLEASE: THINK ABOUT IT!]

Page 131: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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

Page 132: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Speaking of Enormous

[Missed] [Huge] Opportunities ...

Page 133: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Subject: Marketers & Stupidity

It’s 18-44, stupid!

Page 134: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Subject: Marketers & Stupidity

Or is it: 18-44 is stupid, stupid!

Page 135: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

2000-2010 Stats

18-44: -1%55+: +21%

(55-64: +47%)

Page 136: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

Page 137: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!

Page 138: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 139: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Outside

Strategy 7:

BRAND POWER!

Page 140: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

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]

Page 141: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“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

Page 142: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Page 143: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Leadership

Passion Rules!

Page 144: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Page 145: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

Page 146: 2000 SC Johnson Global Forum Honoring Our Heritage/ Mastering Our Future Hong Kong 17October2000

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander