Distinct or … ExtinctTom Peters Seminar2000

Carpet OneTampa Convention Center

12 August 2000

www.cyveillance.com

08.12.2000/0509AM:

2,337,711,647

www.cyveillance.com

08.12.2000/0942AM:

2,339,010,606

Summer 2000 …

KOA wires up!

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-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

“It means nothing less than the total

reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPointFord + Yahoo!

Ford + Oracle [Now Covisint]

Ford + HP/WorldcomEtc.Etc.

Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work I

The Destruction Imperative!

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

The [New] Ge Way

DYB.com

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

And Now the Equivalent …

White Collar Revolution!

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

Brand Inside

Brand Work: The WOW Project

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Characteristics of the “Also Rans”

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

Source: Fortune on “most admired global corporations” (10/26/98)

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

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

“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

“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)

Home Depot Goes Long!

7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH

INITIATIVE

E.g.: COO of IKEA to head international expansion

Ed Michaels, War for Talent (05.17.00)

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An

outstanding software product developer may create a product worth $1M to $300M. 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)

“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)

Dudes With ’Tude“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

It’s 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

Talent = Brand

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work II

The Commodity Trap

Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

“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 Nordstrom and Jonas Ridderstrale, Funky Business

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

Brand Outside

Strategy 1:Use E-Commerce to

Re-invent Everything!

?????

$40,000,000.

Dell’s Web sales … daily

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the

Web per se.

Schwab: $25B per week in asset transactions [80% of trades]

[Transition to e.Schwab: Rev. fell, then quickly doubled]

Oracle: Service Call Center

$300.00 per transaction to $1.50

Savings: $550,000,000.00

Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B; $1B addnl. this year]

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

Tomorrow Today: Cisco!

87% of $20B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

Chat Rooms/Collaborative Design ($1B “free” consulting)

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

Shop in your Underwear

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

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

“In the network economy, the Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front,

store interior, sales staff and post-sales support all rolled into one.”

Jakob Nielsen, Designing Web Usability

“Most companies would do more business on the Internet if they

fired their entire marketing department and replaced it with

people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00)

75% of online shoppers don’t complete their

purchase!

Case in Point …

L.L.Bean’s incredibly awful, amazingly

pathetic, hopelessly misleading, purely putrid

“Web site” (TP 08.01.2000)

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

“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]

When?

NOW!

“It’s better to be first with less than last with more. Success on

the Web isn’t just about time to market, it’s also about

‘time to learning.’ ”

Jeff Levy, eHatchery

Getting Right Down to Brass Tacks …

Bricks & Mortar?

Bricks &Clicks?

All Clicks All the time?

#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING

TO GIVE UP THE IN-STORE SHOPPING

EXPERIENCE FOR THE INTERNET IS JUST THAT.

AN IDIOT.

#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO

BE HANGING OUT IN STORES 15 YEARS FROM

NOW IS JUST THAT. AN IDIOT.

TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE

OF THE ABOVE TWO STATEMENTS IS TRUE IS THE BIGGEST IDIOT

OF ALL.

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Norwest/ Wells

Brand Outside

Strategy 2: Fighting Back via

Systems Integration!

Message: Do More & More & More & More

& More & More & More … for the

Customer!

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

Defense-Offense: Systems Integration/HVA

Delphi, DanaUnited Technologies,

Corning, GE, Sun, Bud …

[Anybody in their right mind!]

E.g. …

GE: boxes [transformers, etc.] to “air traffic controllers of electrons”

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

P&W, etc.: boxes to major aircraft subsystems

Hospitality World Translation:

You are responsible, in my mind,

for … THE TURNKEY TRAVEL EXPERIENCE … and I don’t discriminate among

who provides what.

Hotel in Las Vegas

MY STAY HAS BEEN LOUSY!

YOUR PROBLEM: A GROTESQUE START. To wit: 1 hour, 7 minutes in an airport cab line @ 10:30 P.M.

(1:30 A.M. EDT)

Brand Outside

Strategy 3:

Design Matters!

Message: Great Stuff Trumps Not-So-Great

Stuff!

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

“Design is treated like a religion at BMW.”

Fortune (10/98)

Drop-dead Charm!

“The new Beetle fails at most categories. The only

thing it doesn’t fail in is drop-dead charm.”

Jerry Hirshberg, Nissan Design International

Design as Soul

“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

Message Beetle & iMac: “Great Stuff”

Takes Guts!

Brand Outside

Strategy 4:

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

“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 that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride

through small towns and have people be afraid of him.”Harley exec, quoted in Results-based

Leadership

“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

WHAT’S THE PLOT?

Brand Outside

Strategy 5:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

$4.8T > Japan

9/27.5/3.6T > Germany

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 51% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week (11-99);

Jupiter Communications (8-00)

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*

[* No shit!]

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.”

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

“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 carefully and hold on for the long term)

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

Steve Sanger, CEO, General Mills

“Can we make it ‘one-handed’?”

“Women and men use the Web differently. Women are more

pressed for time. For them, the Internet is really a productivity tool. … Men tend to spend more time on

line just playing around.”

USAToday, 08.09; Media Metrics/Jupiter Communications

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

Not a Morality Play!

“It is critical that we all understand that IBM is not marketing to women

entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge

opportunity.”

Cherie Piebes

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d 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!”

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. PLEASE: THINK ABOUT IT!

Brand Outside

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]

What Can [Can’t] 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

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an

emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that

connects with something very deep - a fundamental appreciation of mythology.

Stories create the emotional context people need to locate themselves in a larger experience.”

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, Tom’s of Maine

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Rules of “Radical Marketing”

Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!

Celebrate Craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

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)

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

“A leader is a dealer in hope.”

Napoleon

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti