leading in totally screwed-up times, johannesburg, south africa
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TRANSCRIPT
Tom Peters/SouthAfrica2002
Leading in Totally Screwed-Up Times
12August2002/Johannesburg
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief
of Staff, U. S. Army
Tom’s 15 TIBs
1. Technicolor.2. Passion.3. Action/R.F!A.4. Screw-ups.5. Mess.6. Revolution.7. eALL.8. Forgetting/Destruction.9. Daring.10. Talent.11. Talent+/Diversity.12. Talent++/Women.13. Design.14. Experiences.15. New Demographics/Women/Aging/Green.
The Context.
“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
The
Leadership50
The Basic Premise.
1. Leadership Is a …
Mutual Discovery Process.
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, mostly—caveat: “they”
don’t engage unless they’re “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-teachers-
leaders) had never dreamed existed—and 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!
1A. Leaders …
Cede Control.
“I don’t know.”
1B. Leaders Try … Not to Screw
Things Up
“Ninety percent of what we call ‘management’ consists of making it
difficult for people to get things done.” – P.D.
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!)
Whoops: Jack didn’t have a vision!
2A. “Just One”: Great Leading = Great
Mentoring.
T.A.: 3
2B. Great Leaders are …
Great V.C.s.
“Basically [Omnicom’s John] Wren makes aggressive bets on entrepreneurs and
gives them tremendous autonomy, on the assumption that the risk-taking will pay off
in new ideas, connections, businesses, and, yes, revenues and profits. …
‘Omnicom operates like a venture-capital firm,’ says Sir Martin
Sorrell [of WPP].”
Business 2.0 (09.17.2001)
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
(+TP’s writing room pics)
4. Find the “Businesspeople”!
(Type III Leadership)
I.P.M. (Inspired Profit
Mechanic)
4A. All Organizations
Need the Golden Leadership
Triangle.
The Golden Leadership Triangle: (1) Creator-
Visionary … (2) Talent Fanatic-Mentor-V.C. …
(3) Inspired Profit Mechanic.
5. Leadership Mantra
#1: IT ALL DEPENDS!
Renaissance Men are … a snare, a
myth, a delusion!
5A. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky
Anderson—1 season.
The Leadership
Dance.
6. Leaders …
SHOW UP!
Rudy!
P.S. …
Mark McCormack: 5,000 miles for a 5
min. meeting!
6A. Leaders … LOVE the
MESS!
“I’m not happy unless
I’m uncomfortable.”—Jay Chiat
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
7. 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!)
Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
7A. Leaders
Re-do.
“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through version after version, until they get
something good enough. Then they leverage the power they’ve gained in
other markets to enforce their standard.”Seth Godin, Zooming
“Sony Electronics has a well-earned reputation for persistence. The company’s first entry into a
new field often isn’t very good. But,
as it has shown in laptops, Sony will keep trying until it gets
it right.”Business Week (5/01)
“If it works, it’s
obsolete.”
—Marshall McLuhan
7B. Leaders Are
PLAYFUL.
“You can’t be a serious innovator unless and until you are ready,
willing and able to seriously play. ‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage, Serious Play
8. BUT … Leaders
Know When to Wait.
Tex Schramm: The
“too hard” box!
Leaders know when to …
RETREAT.
Axioms: (1) Pick your battles carefully. (2) Sometimes inaction
promotes sorting out & preserves options.
9. Leaders …
DELIVER!
9A. Leaders
KNOW They Can Make a Difference!
“Leaders don’t
‘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 necessary.” —WSC
“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 played—or does she keep
wandering back to strategy or philosophy?” —Larry Bossidy,
Honeywell/AlliedSignal, in Execution
9B. Leaders Are …
Optimists.
Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
10. BUT … Leaders Are
Realists/Leaders Win Through LOGISTICS!
The “Gus [Pagonis]
Imperative”!
11. Leaders
FOCUS!
“To Don’t ” List
11A. Leaders …
Set CLEAR DESIGN SPECS.
Danger: S.I.O. (Strategic
Initiative Overload)
JackWorld/1@T: (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!
11B. 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?”
It’s Relationships,
Stupid.
12. Leaders Trust in
TRUST!
Credibility!
12A. Leaders Infuse the Dreaded-All Important “Evaluation Process”
with CREDIBILITY!
25 = 100
13. Leaders …
Understand the Ultimate Power of RELATIONSHIPS.
“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, America’s 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 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
14. Leaders Know …
Women Roar/ Women Rule.
“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
Women’s 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, America’s Competitive Secret
If It Ain’t Broke … Break It.
15. Leaders …FORGET!/
Leaders … DESTROY!
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
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
“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 Innovator’s Dilemma
Whaddaboutheproduct?
20 of 267 of top 10*
*P&G: Declining domestic sales in 20 of 26
categories; 7 of top 10 categories. (The “billion-
dollar” problem.)
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
Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
Cortez!
Jim & Tom. Joined at the
hip. Not.
The [New] Ge Way
DYB.com
16. BUT … Leaders
Have to Deliver, So They Worry About “Throwing the Baby Out with the
Bathwater.”
“Damned If You Do, Damned If You Don’t, 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)
“Organize” for … performance & customer satisfaction.
“Disorganize” for … renewal & innovation.
17. Leaders …
HONOR THE USURPERS.
Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
CUSTOMERS: “Future-defining customers may
account for only 2% to 3% of your total, but they represent a crucial
window on the future.”Adrian Slywotzky, Mercer Consultants
COMPETITORS: “The best swordsman in the world doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t
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
17A. Leaders …
HANG OUT WITH FREAKS!
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
Deviants, Inc. “Deviance tells the story of every mass
market ever created. What starts out weird and dangerous
becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way
out there.”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
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) don’t 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) Don’t try to learn anything from people who seem to have solved the problems you face.
(11) Forget the past, particularly your company’s success.
Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation
Leaders know … WE BECOME WHO
WE HANG WITH!
Message: TAKE
SOMEONE NEW & WEIRD TO LUNCH
TODAY OR TOMORROW. [Inundate yourself with weird.]
18. Leaders Make [Lotsa] Mistakes
– and MAKE NO BONES ABOUT IT!
Sam’s
Secret #1!
“Fail faster. Succeed sooner.”
David Kelley/IDEO
Fail. Forward. Fast. –High-tech Exec
“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)
Read This!
Richard Farson & Ralph Keyes: Whoever Makes the Most
Mistakes Wins: The Paradox of Innovation
18A. Leaders Make …
BIG MISTAKES!
“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
18B. Leaders Honor Mistakes & Create
“Blame-free ‘Cultures.’ ”
Winning By Acknowledging Failures
Wernher Von Braun, the Redstone missile engineer who “confessed” & the bottle of champagne. Award to the sailor on the Carl Vinson—for reporting the lost tool. Amy Edmondson & the successful nursing units with the highest reported
adverse drug events.Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected
Accountability: YES!Never-ending witch
hunts: NO!
Create.
19. Leaders Know that
THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW
MARKETS.
“Acquisitions are about
buying market share. Our challenge is to create markets.
There is a big difference.” Peter Job, CEO, Reuters
No one ever made it into the Business Hall of Fame on a record of
“line extensions.”
20. 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 Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to
5%)
Source: Jump Start Your Business Brain, Doug Hall
“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the
message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,
major consumer goods company
20A. Leaders … Make Their Mark /
Leaders … Do Stuff That Matters
“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
Trends.
21. Leaders “Get” the …
Big3 Trends
Trends I:
Women Roar.
?????????
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%
2/3rds working women/50+% working wives > 50%
80% checks61% bills
53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
$4.8T > Japan
9M/27.5M/$3.6T > Germany
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.”
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
“Women don’t buy
brands. They join them.”
EVEolution
Not!“Year of the
Woman”
“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 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 Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M = 16;
F = ?? (94% = 272)
0
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!”
Stupid!
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 carefully and hold on for the long term)
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 male19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
“Customer is King”: 4,440
“Customer is Queen”: 29
Source: Steve Farber/Google search/04.2002
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
Trends II:
Boomer Bonanza/ Godzilla Geezer.
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%)
50+
$7T wealth (70%)/$2T annual income50% all discretionary spending
79% own homes/40M credit card users41% 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
“Marketers attempts at reaching those over 50 have been miserably
unsuccessful. No market’s motivations and needs
are so poorly understood.” —Peter Francese,
founding publisher, American Demographics
“ ‘Age Power’ will rule the 21st century, and we are woefully
unprepared.”Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
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.
And #3: GREEN?????: 50% to 36%: Protect Environment >
Economic Growth.
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
No: “Target Marketing”
Yes: “Target
Innovation” & “Target Delivery Systems”
Women’s/Aging/Green Market: Why Tough?
Encompassing!Attitude!
CULTURAL!
New Model.
22. Leaders … Understand the
Enormity of the White Collar Revolution.
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks.
Hans Ohlin (50 yr old chief of coronary care, Univ of
Lund/SW) : 620. Lars Edenbrandt’s
software: 738.
*Only this time it matters!
“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
23. Leaders … Turn All
Departments into “PSFs.”
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.
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. We’ve 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)
24. Leaders Push Their
Organizations W-a-y Up the Value-added/
Intellectual Capital Chain
The Big Day!
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Gerstner’s IBM: Systems Integrator of
choice. Global Services:
$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 don’t have services.”—Lou Gerstner on IBM’s coming
revolution (1997)
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s 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.
Nardelli’s 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
E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
“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)
“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 it’s financial security, buying a car, paying
for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,
Farmers Group
“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)
Omnicom: 57%
(of $6B) from marketing services
25. Leaders …
Demolish Stovepipes!
“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 & René 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 don’t
talk to each other.”Boston Globe (09.30.2001)
“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because 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
The …
Solutions25.
1. It’s 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.
12. All functions contribute equally—IS, 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 CUSTOMER- PARTNER.)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!
Innovation & Speed’s “New Basics”*
1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems.” IS—at home & throughout supply chain. Web based.6. F-L-A-T.
*Innovation, Speed, CRM, “Experience”/ “Solution” demand this
KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.
WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.
“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
[ 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]
“Supply Chain” 2000:
“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized
home page. He can interact with the entire scope of Company X’s 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 don’t 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)
26. Leaders Know that the “HVA/Solutions
Revolution” rests upon: Experiences … Dream Fulfillment … Design.
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
“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“Guinness as a brand is all about community.
It’s about bringing people together and sharing
stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
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 “Experience Ladder”
Experiences Services
Goods Raw Materials
Bob Lutz: “I see us as being in the art business. Art,
entertainment and mobile sculpture, which,
coincidentally, also happens to provide transportation.”
Source: NYT 10.19.01
“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
“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.]
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 StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners PeleCNN 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
The [Mostly Ignored] “Soul” of “Experiences”:
Design Rules!
Design’s place in the universe.
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
“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
Bottom Line.
Design “is” … WHAT & WHY I LOVE.
LOVE.
Design “is” … WHY I
GET MAD. MAD.
Design is never neutral.
Hypothesis: DESIGN is the principal difference between love and
hate!
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 doesn’t.
Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the
front burner.
Message (?????): Men cannot design for women’s
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
intuition—it’s female.”
Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
Technology.
27. Leaders
LOVE the New Technology!
100 square feet
WebWorld = Everything
Web as a way to run your business’s 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.
“There’s 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 dreamed
before!
“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we don’t 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 doesn’t hold
here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined
28. Needed? Type IV Leadership: Technology
Dreamer-True Believer
The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent
Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True
Believer
Talent.
29. When It Comes to
TALENT … Leaders Always Swing
for the Fences!
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)
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
30. Leaders Don’t Create “Followers”:
THEY CREATE LEADERS!
“I start with the premise that the
function of leadership is to produce more leaders, not more
followers.”—Ralph Nader
Brand You, Big Time!
I AM AN ARMY OF
ONE
31. Leaders “Win Followers Over”
WHAT AN IDIOT: “Instead of employees being in the driver’s
seat, now we’re in the driver’s seat.”
PJ: “Coaching is winning
players over.”
32. Leaders “Manage” Their
EVP/Internal Brand Promise.
MantraM3
Talent = Brand
EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
33. Leaders LOVE KIDS.
“Why focus on these late teens and twenty-
somethings? 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 there’s oya yubi sedai, the “thumb generation”
33A. Leaders Pursue
Poets!
Gardner’s MI7: Logical-mathematical, Linguistic,
Spatial, Musical, Bodily-kinesthetic,
Interpersonal, Intrapersonal.
Passion.
34. Leaders …
Out Their
PASSION!
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
“Vision is a
love affair with an idea.”—Boyd Clarke & Ron
Crossland, The Leader’s Voice
“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
!
35. Leaders Know: ENTHUSIASM
BEGETS ENTHUSIASM!
35A. Leaders Watch Their …
LANGUAGE!
Language
matters!
36. 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. TP’s final words: CYNICISM SUCKS.]
36A. Leaders Know …
“Culture Change” Takes But a Minute. (No Bull!)
What Do I “Do” First?
One Minute Excellence!*
*Thomas Watson
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 Now!Culture Change
Lives in the Moment!Culture Change is
Entirely in Your Hands!
The “Job” of Leading.
37. Leaders Know It’s
ALL SALES ALL THE TIME.
TP: If you don’t LOVE SALES … find
another life. (Don’t pretend
you’re a “leader.”) (See TP’s The Project50.)
37A. Leaders
LOVE “POLITICS.”
TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend
you’re a “leader.”)
38. But … Leaders Also
Break a Lot of China
If you’re not pissing people off, you’re not making
a difference!
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002
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!
39. Leaders
Give … RESPECT!
“It was much later that I realized Dad’s 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
“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop
and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ ‘You can tell
that this is really Prof. C’s life.’ ”
Parker Palmer, The Courage to Teach
40. Leaders Say
“Thank You.”
“The deepest human
need is the need to be appreciated.”
William James
“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
40A. Leaders Are …
Graceful.
“My favorite word is grace –
whether it’s amazing grace,
saving grace, grace under
fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or
the environment.”
Celeste Cooper, designer
Rodale’s on “Grace” …
elegance … charm … loveliness … poetry in motion … kindliness ..
benevolence … benefaction … compassion … beauty
41. Leaders
LISTEN!
See Stephen! (Empathetic Listening)
41A. Leaders Are …
Curious.
TP/08.2001: The Three Most Important Letters …
WHY?
42. Leadership Is a …
Performance.
“It is necessary for the President to be the
nation’s No. 1 actor.”
FDR
“You can’t lead a cavalry charge if you think you look funny on a
horse.” —John Peers, President, Logical
Machine Corporation
43. Leaders … Are The Brand
“WHO ARE YOU [these days] ?”
TP to Client
The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-
to-moment actions.
“You must be the change you
wish to see in the world.”
Gandhi
“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
44. Leaders …
Have a GREAT STORY!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
“Stories of identity – narratives that help individuals think about
and feel who they are, where they come from, and where they
are headed – constitute the single most powerful weapon
in the leader’s arsenal.”Howard Gardner, Leading Minds: An Anatomy of Leadership
“Early in my career in the law I learned
that … he who has the best story
wins.”JQ Adams/A Hopkins to T Joadson/M Freeman
MBSA!*
*Managing By Story-ing Around/David Armstrong
45. Leaders Seed & Pursue &
Recognize (Weird) “Demos.”
“Some people look for things that went wrong and
try to fix them. I look for things that went right
and try to build on them.” —Bob Stone/ Mr. Rego/ Confessions of an
Uncivil Servant
Leaders aimed on changing their
world identify palpable heroes, who executed palpable projects—they
point to these people and say to the masses, “See, here it is, done by one of your own.” (And then they
“deep-dip” a few of those heroes to demo their seriousness.)
REAL Org Change: Demos & Models (“Model
Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned
to reinvent gov’t”)/ 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 Runs—“Pull Strategy” (weird alliances, weird
customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/
Speed (O.O.D.A. Loops—act before the “bad guys” can react)
C.f., Bob Stone, Confessions of an Uncivil Servant
Each VP a V.C.: Portfolio of high-risk investments in
people & ideas from all across the company.
Introspection.
46. Leaders …
Enjoy Leading.
Warren’s “Whoops Moment” …
“Warren, I know you want to ‘be’
president. But do you want to ‘do’
president?”
46A. 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.)
46B. But …
Leaders have MENTORS.
The Gospel According to TP: Upon having the Leadership
Mantle placed upon thine head, thou shalt never hear the unvarnished
truth again!* (*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.)
47. Leaders
LAUGH!
47A. But … Leaders Know
“It’s My Fault.”
You recruited ’em.You hired ’em.
You trained ’em. You evaluated ’em.
You “motivated” ’em.
47B. Leaders Don’t Scapegoat /
Allow Scapegoating.
“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.
48. Leaders … Take Breaks.
Zombie!Zombie!Zombie!Zombie!
The End Game.
49. Leaders ???
:
“Leadership is the PROCESS of
ENGAGING PEOPLE in CREATING a LEGACY
of EXCELLENCE.”
“ ‘It’s only business, not personal’ … IT
ALWAYS IS PERSONAL.”
“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”
Bonus: Boss Talk
Branding: Kevin Roberts: “The great brands have mystery and
sensuality. Apple is the most sensual product since the
vibrator.”/ Tina Brown: “You should be able to throw a magazine on the floor at any page and know
whose magazine it is.”/
The Perils of “Me-too”: Stephen Hardis (Eaton): “Don’t have your
resources trapped in areas that are inherently zero-sum games with a very marginal return.”/ Phil Condit (Boeing): “Just doing what your competitor does
is the biggest opportunity to lose money. Douglas and Lockheed built
tri-jets to the identical specs and beat each other silly.”
Jeff Bezos: “It’s easy to let the in-box side of your life overwhelm
you, so you become a totally reactive person. The only remedy I know is to set aside some fraction
of your time as your own. I use Tuesdays and Thursdays as my proactive days, when I try not to
schedule meetings.”
Jeff Bezos: “I'm often encouraging people to go faster, even if it means a
worse initial product. I want us to start learning. The cost of trying to avoid mistakes is huge in terms of speed.”
Robert Miller (Federal-Mogul), on Turnarounds: (1) Tell the truth.
Play it straight. (2) Make decisions. Don’t study things to
death. (3) Listen to your customers. They are usually more perceptive than you are about what needs to be done.
Juergen Schrempp/DaimlerChrysler
“Digital decision making”/ “the danger of the deadly
wish for harmony”
Boss Talk/WSJ
Provide a simple, clear, exciting & energizing focus.Obsess on TALENT.Speed > Perfection. (Clarity, motivation, rapid adjustment.)
Leap > Line extension. (Beware “me-too,” perfecting yesterday.)
Tell the truth.Control your calendar.Get out of the office.Listen to customers face-to-face—at their place.
50. Leaders Know
WHEN TO LEAVE!
Thank You!