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Tom Peters SeminarM3
Rollercoaster Days: Learning to … Rock & Roll!
ING Aetna Financial Services
Dallas/03.21.2001
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“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
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Everything has changed: E.g., profits & cash flow matter in valuing a stock; the I’net & B’tech revolutions haven’t nullified the business cycle; people aren’t panicky.
Nothing has changed: E.g., 25 years of whitewater ahead; there is a New Economy; the Internet will change EVERYTHING; there
are many revolutions to come … hence many unforeseen winners & many unforeseen
losers; Duke has a good basketball team; don’t short Krispy Kreme.
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Structure
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Forces @ Work I
The Destruction Imperative!
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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
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The [New] Ge Way
DYB.com
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The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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Brand Inside
Brand You: Distinct …
or Extinct
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White Collar Revolution!
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2010 “Demographics”:
By 2010, full-time workers will be in the
minoritySource: MIT study (28August2000)
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“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
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“New Economy changes how
firms treat layoffs”
Headline, USA Today (03.19.2001)
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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
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Brand Inside
Brand Talent: The Great War for Talent
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“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, COO, Enron
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From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
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MantraM3
Talent = Brand
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“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
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Women and new-economy
management …
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The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
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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
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“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
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“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
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“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
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Okay, you think I’ve gone tooooo far.
How about this: DO ANY OF YOU SUFFER
FROM TOO MUCH TALENT?
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Brand InsideReprise
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N.W.O.: Was Is 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
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Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
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Forces @ Work II
The Commodity Trap
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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
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What’s Special?
“Customers will try ‘low cost providers’ because the
Majors have not given them any clear reason not to.”
Leading Insurance Industry
Analyst (10-98)
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“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
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“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
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Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
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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%
Annual savings in service and support from customer
self-management: $550M
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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)
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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
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Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
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“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
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Brand Outside
Strategy 1A:Healthcare et al.:
Embracing ane-Led Age of
Self-Determination
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“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 Nordstrom and Jonas Ridderstrale, Funky Business
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“I’m old enough to remember when you went into a bar in the summer,
they were watching a baseball game. Now, they’re
watching CNBC.”Byron Wien, Chief U.S. equity strategist,
Morgan Stanley Dean Witter
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The control revolution. The potentially monumental shift in
control from institutions to individuals made possible by new technology such as the Internet.
Source: Introduction, The Control Revolution, Andrew Shapiro
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“It may be the most far-reaching evolution of them all: the
metamorphosis of passive patient into consumer – and well-informed, assertive consumer at that. The
defining axiom of traditional medicine – ‘doctor’s orders’ is being turned on its head. These days it’s the patients
who are armed, the doctors who must get wired to keep nimble.”
Richard Firstman, “Heal Thyself,” On Magazine (04.01)
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THE FUTURE: Patients Rule!
Control Over Aging! [M&F Cosmetic Surgery, Viagra] Targeted Therapies = High Expectations The Internet! [meds, expert consultation, info-
knowledge incl. outcome data & own recs, interaction with peers & docs, awareness that experts aren’t]
Alt Therapies! [more visits, some insurer recognition]Awareness [medicine as front-page news, ads]
Boomers! [#s, $$$, Ethos of self-control]Prevention/Wellness
HMO [no-choice] Revolt“Age of Talent” [Be nice, boss!]
Speed! [surgicenters, out-patient, self-admin regimens]
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Sooooo …
Is your strategy centered around customer-client empowerment & self-
determination? Hint: This means letting go
of traditional sources of power!
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Brand Outside
Strategy 2:
Women Rule!
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?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Consumer Electronics … 51%
Cars … 60% (90%)All consumer purchases … 83%
Bank Account … 89%Health Care … 80%
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????
80+%
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Riding Lawnmowers
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$4.8T > Japan
9M/27.5M/$3.6T > Germany
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Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
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“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.”
Faith Popcorn
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EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
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“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
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“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
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“Honey, are you sure you have the kind of money it takes to be looking at a car like
this?”
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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
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Brand Outside
Strategy 3:
BRAND POWER!
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“WHO ARE YOU [these days] ?”
TP to Client
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“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
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“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voila, you’re 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
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“Brand Promise” Exercise: (1) Who Are WE? (1 page, 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) Big Enchilada:
Try ’em on a skeptical Client!
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“Create a Cause, not a ‘business.’
”Gary Hamel, Fortune (06.00)
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“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
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“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
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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
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Message: REAL Branding is personal. REAL Branding is integrity. REAL
Branding is consistency & freshness. REAL Branding is the answer to WHO
ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments,
all hands affair.
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“WHO ARE WE?”
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“WHO AM I ?”
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“EXACTLY HOW AM I/
ARE WE DIFFERENT?”
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“HOW DO I CONVEY THAT
DIFFERENCE TO THE CLIENT ”
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“You must be the change you
wish to see in the world.”
Gandhi
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Brand Leadership: ENTHUSIASM RULES!
Ben Zander: “I am a dispenser of
enthusiasm.”
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“A leader is a dealer in hope.”
Napoleon
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“ WHY DOES IT MATTER TO
THE CLIENT?”
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“Let’s make a dent in the universe.”
Steve Jobs