tom peters’ how new business works: rules for re-invention 10.10.2002

Tom Peters’

How New Business Works: Rules for

Re-invention10.10.2002

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief

of Staff, U. S. Army

“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

“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …

“Al-Qaeda represents a new and profoundly dangerous kind of

organization—one that might be called a ‘virtual state.’ On September a virtual state proved that modern societies are vulnerable as

never before.”—Time/09.09.2002

“The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald

Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are

free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. …

“ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways

to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy

and slow.’ ”—The New York Times/09.04.2002

From: Weapon v. Weapon

To: Org structure v. Org structure

“Our military structure today is essentially one

developed and designed by Napoleon.”

Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

“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 & Rene 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)

“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office

quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the

years ahead.

“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to

give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based

targeting systems to make the air strikes brutally effective.

“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the

real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly

together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business

2.0/ OCT2002

Eric’s Army

Flat.Fast.Agile.Adaptable.Light … But Lethal.Brand You/ Talent/ “I Am An ARMY Of One.”Info-intense.Network-centric.

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

I Believe …

1. Change will accelerate. DRAMATICALLY.2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS. (Business … Health Care … Politics … War … Education … Fundamentals of Human Interaction.)

3. OPPORTUNITIES are matchless. 4. You are either … ON THE BUS … or … OFF THE BUS.5. I WANT TO PLAY! AND YOU?

I. NEW BUSINESS.

NEW CONTEXT.

1.All Bets Are Off.

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 1st 20 years > 1800s

2000: 10 years for paradigm shift

21st century: 1000X tech

change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it

represents a rupture in the fabric of human history”)

Ray Kurzweil

“There’s going to be a fundamental change in the

global economy unlike anything we have had since the cavemen began bartering.”

Arnold Baker, Chief Economist, Sandia National Laboratories

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

“In 25 years, you’ll probably be able to get the

sum total of all human knowledge on a personal

device.”Greg Blonder, VC [was Chief Technical

Adviser for Corporate Strategy @ AT&T] [Barron’s 11.13.2000]

“I genuinely believe we are living through the greatest intellectual moment in history.”

Matt Ridley, Genome

Yo, Bioinformatics!

“Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner

than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”

AP/AOL/02-00

“We are in a

brawl with no rules.”

Paul Allaire

“Strategy meetings held once

or twice a year” to “Strategy meetings needed several

times a week”

Source: New York Times on Meg Whitman/eBay

2. The Destruction Imperative.

“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

C.E.O. to

C.D.O.

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

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

“When asked to name just one big merger that had lived up to expectations, Leon

Cooperman, former cochairman of Goldman Sachs’ Investment Policy

Committee, answered: I’m sure there are success stories

out there, but at this moment I draw a blank.”

Mark Sirower, The Synergy Trap

“Conglomerates don’t work” —James

Surowiecki, The New Yorker (07.01,2002)

Way to Go, Guys …

2002 write downs from recent

acquisitions …

$1,000,000,000,

000**$1 trillion (Source: Harper’s Index 04.2002)

“Acquisitions are about buying market share.

Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“Active mutators in placid times tend to die off. They

are selected against. Reluctant mutators in

quickly changing times are also selected against.”

Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors

Lessons from the Bees!

“Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in

nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no

megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into

smaller colonies which can grow value faster. What the bees are telling us is that the corporate

world has got it all wrong.”David Lascelles, Co-director of The Centre for the

Study of Financial Innovation [UK]

CEOs appointed after

1985 are 3X more likely to be fired than CEOs appointed before 1985

Warren Bennis, MIT Sloan Management Review

The [New] Ge Way

DYB.com

“Change the rules before

somebody else does.” —Ralph Seferian, VP,

Oracle

“Most of our predictions are based

on very linear thinking. That’s why they will

most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

“The secret of fast progress is

inefficiency, fast and furious and numerous

failures.”Kevin Kelly

RM: “A lot of companies in the Valley fail.”

RN: “Maybe not enough fail.”

RM: “What do you mean by that?”

RN: “Whenever you fail, it means you’re trying new things.”

Source: Fast Company

“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)

Silicon Valley Success [Failure?] Secrets

“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money;

6 do okay; 3 do well; 1 hits the jackpot

Source: The Economist

Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen.

Axiom (Hypothesis): We need Masters of Discontinuity/

Masters of Ambiguity … in discontinuous/ambiguous

times.

“In the modern military, risk is anathema to rising stars, who cannot afford any slip-ups on

their records. ‘Zero defects’ and ‘zero tolerance’ are common

bywords.”—Newsweek/09.16.02

“Organize” for … performance & customer satisfaction.

“Disorganize” for … renewal & innovation.

“Rumsfeld values mavericks and tries

to protect and promote them.” —

Newsweek/ 09.16.02

“Rose gardeners face a choice every spring: how to prune our roses. The long-term fate of a rose garden depends on this decision. If you want to have

the largest and most glorious roses of the neighborhood, you will prune hard. You will reduce each rose plant to a maximum of three stems. This

represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the

the rose’s ‘core business.’ However, if this is an unlucky year [late frost, deer, green-fly invasion], you may lose the main stems or the whole plant!

Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will leave more stems on the plant.

You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to

cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes

resources—the extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose

healthier. Tolerance of internal weakness, ironically, allows the rose to be stronger in the long run.”—Arie De Geus, The Living Company

Japan’s Science Gap *

Rice farming culture: uniqueness suppressed. Gov’t control of R & D. Promotion based on

seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. “bold

leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe:

“What we need to create is job insecurity rather than security to make people compete more.”

*Hideki Shirakawa, Nobel laureate, chemistry

December 2000: Swiss House for Advanced Research &

Education. Cambridge, Massachusetts. Xavier

Comtesse: “You never hear a Swiss say, ‘I want to change the

world.’ We need to take more risks.”

“The Word(s)” on Vitality: Gary Hamel

“Sell By” [jettison old crap]

Spin Out [support entrepreneurs]

Spin In [buy young firms]

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of

the Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

Jim & Tom. Joined at the

hip. Not.

“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms

should aspire to live forever? Greatness is fleeting and, for corporations, it will become

ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic

frenzy of value creation during a short space of time, rather than to live forever.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

Built to Last v. Built to Flip

“The problem with Built to Last is that it’s a romantic notion. Large companies are

incapable of ongoing innovation, of ongoing flexibility.”

“Increasingly, successful businesses will be ephemeral. They will be built to yield

something of value – and once that value has been exhausted, they will vanish.”

Fast Company (03-00)

“The Futility of Size …

“Virtualization is the recognition that territorial size does not

solve economic problems. … Economic access must become

the substitute for increasing domain.”

Richard Rosecrance, The Rise of the Virtual State

“In Italy for 30 years under the Borgias they had warfare, terror, murder,

bloodshed—and produced Michelangelo, da Vinci and the

Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce

—the cuckoo clock.”

Orson Welles, as Harry Lime, in “The Third Man”

Warren Bennis & Patricia Ward Biederman/

Organizing Genius: Great Groups Don’t

Last Very Long!

W.A. Mozart W.A. Mozart 1756 – 17911756 – 1791

HE CHANGED THE WORLDHE CHANGED THE WORLD

AND AND

ENRICHED HUMANITY ENRICHED HUMANITY

“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)

“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a

timely death. … We believe that most corporations will find it impossible to

match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in

1000 A.D.]”

Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

The Three Levels of Innovation

Transformational

Substantial

Incremental

Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!

Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness.

F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.

II. NEW BUSINESS. NEW TECH.

3. The White Collar Revolution

& the Death of Bureaucracy.

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

“The coefficient of friction associated with the grunge of business

is amazing!”Michael Schrage

“A bureaucrat is an expensive

microchip.”Dan Sullivan, consultant and

executive coach

IBM’s Project

eLiza!** “Self-bootstrapping”/ “Artilects”

“We own all the intellectual property, we farm out all the

direct labor.”

Jim McDonnell, VP, IBM

[“Don’t own nothin’ if you can help it. If you can, rent your shoes.”

F.G.]

“The virtual corporation is research, development, design, marketing, financing, legal, and

other headquarters functions wth few or no manufacturing

capabilities – a company with a head but no body.”


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!

“Most physicians believe that diagnosis can’t be reduced to a set of generalizations—to a ‘cookbook.’ … How often does my intuition lead me astray? The radical implication of the

Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawed—it causes more mistakes

than it prevents.” —Atul Gawande, Complications

Probable parole violations: Simple model (age, # of previous offenses, type of crime)

beats M.D. shrinks.

100 studies: Statistical formulas > Human

judgment. “In virtually all cases, statistical thinking

equaled or surpassed human judgment.”—Atul Gawande,

Complications

“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

N.W.O./Holy Moly:

Unemployment up 2% … real wage growth highest since 60s … productivity soaring.

Source: BW/02.11.2002

E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

4. IS/ IT/ Web … “On the Bus” or “Off the

Bus.”

100 square feet

Dell’s OptiPlex Facility

Big Job: 6 to 8 hours.(80,000 per day)

Parts Inventory: 100 square feet.

The Real “News”: X1,000,000

TowTruckNet.com

Impact No. 1/ Logistics &

Distribution: Wal*Mart … Dell … Amazon.com …

Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.

… Ad Infinitum.

Autobytel: $400.

Wal*Mart: 13%.Source: BW(05.13.2002)

?: Americans on the Web/03.2002

50,000,000

75,000,000

100,000,000

125,000,000

150,000,000

175,000,000

157,000,000*

* +2M/mo.Source: Newsweek (03.25.2002)

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

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction-freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

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.

“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

Read It Closely: “We don’t sell

insurance anymore. We sell speed.”

Peter Lewis, Progressive

“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!

“Don’t rebuild. Reimagine.”

The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002

HUMANA’s Dreams. Emphesys: “Put everything on the Internet.” CEO Mike McCallister, charge to 200-person “outside” I’net unit: “Imagine an ideal Web-based health insurance system and then create a product as close as possible to

that vision.” Start with own employees: SmartSuite. Member employees: “Plan their

own coverage and shoulder more costs.” Dell is model: “Fully customized health for every individual.” Marketing pitch for employers: “Buy choice for employees through a single

source—Humana.”

Source: Fortune/05.27.2002

“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

[ 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]

“Hyperlinks subvert hierarchy!”

The Cluetrain Manifesto

Case: CRM

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

“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.”


“Parents, doctors, stockbrokers, even military leaders are starting to

lose the authority they once had. There are all these roles premised on access to privileged information. …

What we are witnessing is a collapse of that advantage,

prestige and authority.”Michael Lewis, next

“A seismic shift is underway in healthcare. The Internet is

delivering vast knowledge and new choices to consumers—raising their

expectations and, in many cases, handing them the controls.

[Healthcare] consumers are driving radical, fundamental change.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

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

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my universe!

UBIQUITY! “It’s the cars, not the tires, that squeal”:

NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McD’s, gas stations and parking lots

next. OnStar (GM/1.5M). Plus: “black boxes,” GPS (the case of

the $450 ticket), CA smog offenders.

“CRM has, almost universally, failed

to live up to expectations.”

Butler Group (UK)

No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre-

electronic age when service was more personal.”

Rebuttal: (1) Service sucked in the “pre-electronic” age. (2) NewGen believes in the screen! (So do I.)

One Person’s Opinion

TP to reporter: “Service is MUCH better! Would you go back to bank tellers and phone

operators? Value that I place on a “smile”: 3 on a scale of 10. Value I place on fast & accurate “digital”

response: 11 on a scale of 10!!

M. Rogers: -5% defections = +25% to +85% profit. Lose

15% to 35% p.a. 69% defect as a result of lousy sales or

service experience. (Q:But is this the point???? A: Yes.

No.)

CGE&Y (Paul Cole): “Pleasant

Transaction” vs. “Systemic Opportunity.” “Better job

of what we do today” vs. “Re-think overall

enterprise strategy.”

Message CRM: Madness = 600 CRM vendors. ???: “Do it all” or “do

something.” Past: over-invest in low-value customers. Idea: better experience, not off-load work to

customer. Relationship = f(dialogue & knowledge & duration). Key: new

attitudes, DESTRUCTION of functional barriers to info & action.

Wells Fargo ($285B): Master of B&C

$900M since ’99. 3M. 1/3rd of chk

acct customers on line. 5,400 branches: 4 of 5 who do product

research on line purchase at branch. Wire transfer, save 30%; 17% less calls. Material diff to bottom line.

Source: BW Online (03.20.02)

“Hyperlinks subvert hierarchy!”


Corporate Resistance to “It”

“It all goes back to fear of losing control!”


“E-business is the final nail in the coffin

for bureaucracy at GE.”

Jack Welch/GE Annual Report 2000

[ 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]

Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the

Coming Century

Hong Kong: Prototypical “Virtual State”

83% Service8% Mfg.

Source: Richard Rosecrance, The Rise of the Virtual State

“The new dependence on productive assets located within someone else’s state represents

an unprecedented trust in the integrity and peacefulness of strangers.”

“In its pure form – an ideal model toward which many states are tending – the virtual state

carries within it the possibility of an entirely new system of world politics.”


“Imagine a world where a citizen could search the globe to

assemble “my government,” the ultimate in customized,

customer-centric services. Health care from the Netherlands, business incorporation in

Malaysia …”

Don Tapscott

“The virtual corporation is research, development, design, marketing, financing, legal, and

other headquarters functions with few or no manufacturing

capabilities – a company with a head but no body.”


“We own all the intellectual property, we farm out all the

direct labor.”

Jim McDonnell, VP, IBM

“The Futility of Size …

“[Regarding this issue] the new process of virtualization fully exerts

itself. Virtualization is the recognition that territorial size does not solve economic problems. … Economic

access must become the substitute for economic domain.”


TP: Skill at creating, exploiting, and exiting crucial alliances beats

ownership of fixed assets.

“At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.”


III. NEW BUSINESS. NEW

VALUE PROPOSITION.

5. The “PSF Solution”:

The Professional Service Firm Model.

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.

TP to NAPM: You are the …

Rock Stars of the

B2B Age!

Message: You are Re-invention Evangelists!

ChicagoNovember 1999:

HRMAC

“support function” / “cost center” / “bureaucratic

drag”

or …

Are you “Rock Stars of the

Age of Talent”

“P.S.F.”: Summary

H.V.A. Projects (100%)Pioneer Clients

WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”

Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++)

When: Now!

BMW’s Designworks/USA:

>50% from outside work

Bill of (SELECTIVE) Rights

YOU HAVE THE RIGHT TO CHOOSE YOUR CLIENTS! (Wanna be-stay-get COOL … Work With Cool Clients!)

(YOU ARE YOUR CLIENT LIST.) (LIFE IS TOO SHORT TO WORK WITH

JERKS.) (Mass marketers: TARGET INNOVATION. E.g.: African-Americans … Hispanics … the Aging Population

… Greens … Women)

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!

What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

C.I.O. to

C.E.F.R.N.S.*

*Chief Evangelist For

Really Neat Stuff

G.M. = The Recruitment and Development of Top Talent.

[Period!]

V.C. = Bets on “Talent.” Bets on Projects. [Period!]

Dept. Head I = Sports G.M.

Dept. Head II = V.C.

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)

The “PSF Problem”

“Professionalism” = Arrogance = Pseudo-

science. “Hear no evil, see no evil, don’t rat out

your peers” … Docs, Teachers, Clergy (Law), Accts (Berardino)

6. The Heart of the Value

Added Revolution: PSFs Unbound/ The

“Solutions Imperative.”

Base Case: The Sameness Trap

“Companies have defined so much ‘best practice’

that they are now more or less identical.”

Jesper Kunde, A Unique Moment

“While everything may

be better, it is also increasingly the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“We make over three new product announcements a

day. Can you remember

them? Our customers can’t!”Carly Fiorina

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, coming up

with similar ideas, producing

similar things, with similar prices

and similar quality.”


Funky Business: “To succeed we must stop being so goddamn

normal. In a winner-takes-all world,

normal = nothing.”

“When we did it ‘right’ it was still pretty ordinary.”

Barry Gibbons on “Nightmare No. 1”

“Customers will try ‘low cost

providers’ … because the Majors have not

given them any clear reason not to.”

Leading Insurance Industry Analyst

SWA > American +

Continental + Delta + Northwest + United + USAirways.

Source: Boston Globe (12.22.2001)

Getting Beyond Lip Service!

“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

“The Internet is the most effective profit-killer on earth … it stimulates a TRUE FRE

MARKET; and a real free market is the most dangerous of marketplaces for

companies selling the SAME OLD STUFF. To those with COURAGE, free markets are

great—they help kill off the deadwood competitors who don’t have the courage

to change—making way for them to LEVERAGE their DRAMATIC DIFFERENCE

into profitable growth.”—Doug Hall

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)

Service-Systems Paradox: Cut & Grow

Automate 75% of “commodity” service activities

and/but

Add value via people-intensive “strategic/systems-integration

activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)

AT&T: President David Dorman: Back to long distance … but with “bundles of lucrative corporate services” for the likes of Merrill

Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers

(50%)—hold on to high enders.

Source: BW/05.20.2002

“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.

E.g. …

UTC/Otis + Carrier: boxes to “integrated building 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

“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)

New Springs = Turnkey

Flexible sourcing.Collections.Packaging.

Merchandising.Promotion.

Systems & Site mgt.

“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

“Our mission is to go from being the world’s premier timeshare—which is a large idea in a small industry—to being

what we call the market makers for global travel and leisure. We need to enable developers to be involved in

more travel and leisure products, rather than just the timeshare side.”—

Ken May, RCI (Source: Developments)

“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)

“ ‘Architecture’ is becoming a commodity.

Winners will be ‘Turnkey Facilities Management’

providers.”SMPS Exec

“We are a ‘real estate facilities consulting’ organization, not just

an ‘interior design’ firm.”

Jean Bellas, founder, SPACE (from SMPS Marketer)

Omnicom: 57% (of

$6B) from marketing services

Who was the number one employer of

architecture school grads in the U.S.

last year?

Message: Eat Or Be Eaten.

HP. Sun. IBM. GE/PS. GE/IS. (GE/AE. GE/MD.)

UTC. Farmers. Delphi. UPS/ FedEx/ Ryder.

Springs. Omnicom. IDEO. Accenture. Equity Office

Properties. RCI. Etc. Etc.

Words: Partners … Value Added … Intellectual-capital Added … Consultative-skills Added …

Implementation Added … Model “PSF” … Outsourcing (??) …

Acquisitions-led (Omnicom et al.) … “Experiences”- (“Solutions”-) (“Customer Success”-) driven.

Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2)

Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer

Success.”

Model2002/3/4/5/??

Dell* + IBM** =

Magic

*Cut (ALL) the bullshit

**Add (LOTSA) “soft”/“integrative”/“experiences” value

The Seagate Exception. (Paradox?

Possibility?)

7. The …

Solutions25.**NO MORE “SILOS.” NO MORE

“STOVEPIPES.” (DAMN IT.)

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.

“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 & Rene 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


“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

“By combining powerful computer technology and other

modern information-based systems we could make a

revitalized, leaner military force that is designed to outsee,

outmaneuver and outfight any foe.” —Bill Owens, Lifting the Fog of War

“P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say Over Research”—Advertising

Age (03.25.2002)

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!

Q: Is that all there is?

A: Quite possibly.

“Roche’s New Scientific Method”—Fast

Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.” “The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.”

Duh???*: “We’ve come up with a solution. … We’ve begun to create a form of

communications that is much better than we had before, and that’s allowed us to gather better data. We’ve finally realized

that we have an interplay with other hospitals and with pre-hospital.”—Dr. Ben Honigman, ER, U. Colorado Hospital, on “diverts” (Denver

Post/05.05.02)

*Internet + Data + Open data exchange + Barrier busting

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.7. EVP (S.O.U.B), etc.*Innovation, Speed, CRM, “Experience”/ “Solution” demand this

XF25: WOW Projects (100%). Physical Co-location (geologists &

geophysicists). Strategic firings of turf kings (top performer goes). Bonuses

(big). Deep dipping. Job rotation (musical chairs at the top). EVP/SOUB. Lots of kids (Instant Messaging). Early Proj Mgt experience. Take techies on

sales calls. Symbolic stuff (black berets).

“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)

KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.

WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.

The Real “New Economy”

“Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on the

board stays the same but the capabilities of the pieces randomly change. Knights now move like

bishops, bishops like rooks … Technology does that. It rubs out boundaries that separate industries.

Suddenly new competitors with new capabilities will come at you from new directions. Lowly truckers in

brown vans become geeky logistics experts. …”

Business 2.0 (8.2001)

IV. NEW BUSINESS. NEW

BRAND.

8. 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

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 [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

“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

WHAT CAN BROWN DO FOR YOU?

From “Service’ to “Cause”

7X. 730A-800P. F12A.*

*Plus: WOW Department’” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce

Bank/NJ ($10B). Source: FC05.02.

The “Experience Ladder”

Experiences Services

Goods Raw Materials

1940: Cake from flour, sugar (raw materials economy): $1.00

1955: Cake from Cake mix (goods economy): $2.00

1970: Bakery-made cake (service economy): $10.00

1990: Party @ Chuck E. Cheese (experience economy) $100.00

Message:

“Experience” is the

“Last 80%”

P.S.: “Experience” applies to all work!

1940: Cake from flour, sugar (raw materials economy): $1.00

1955: Cake from Cake mix (goods economy): $2.00

1970: Bakery-made cake (service

economy): $10.001990: Party @ Chuck E. Cheese

(experience economy) $100.00

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

“Lexus sells its cars as containers for our

sound systems. It’s marvelous.”—Sidney Harman/

Harman International

It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”

Trapper: <$20 per beaver pelt.

WDCP: $150/“problem beaver”; $750-$1,000 for flood-control

piping … so that beavers can stay.

Source: WSJ/05.21.2002

“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

LAN Installation Co.

to

Geek Squad (2% to 30%/Minn.)

First Step (?!): Hire a theater director, as

a consultant or FTE!

“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.]

Extraction & Goods: Male dominance

Services & Experiences: Female

dominance

“Women don’t buy

brands. They join them.”

EVEolution

The “Experience Ladder”

Experiences Services

Goods Raw Materials

Ladder Position Measure

Solutions Success(Experiences)

Services Satisfaction

Goods Six-sigma

9. 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.


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.


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.”


Constantly Magnify Perceived Value

Maximize your value-added by fulfilling the dreams of your clients.

Only invest in what is valuable for your client.Don’t let the short-term results weaken the

long-term value of your brand.Balance rigorous control of the financial endeavor

with the emotional management of your brand.Build a financial structure that allows risk-taking:

NO RISKS—NO DREAMS.Establish long-term “price power” in order to avoid

the trap of the commodity product.


10. The [Mostly Ignored] “Soul” of “Experiences”:

Design Rules!

Design Myths.

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

The I.D. [International Design] Forty*

Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …

Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …

Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.

* List No. 1, 1999

Unconventional [Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

Design Transforms even the [Biggest] Corporations!

TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”

(Advertising Age)

Lady Sensor, Mach3, and …

$70M on developing the OralB CrossAction toothbrush

23 patents, including 6 for the packaging

Source: www.ecompany.com [06.00]

Design2002

LISTERENE’s … PocketPaks

WESTIN’s … Heavenly

Westin’s …

Heavenly Bed

Design’s place in the universe.

And Tomorrow …

“Fifteen years ago companies competed on price. Now it’s

quality. Tomorrow it’s design.”

Robert Hayes

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

“The new Beetle fails at most categories. The only

thing it doesn’t fail in is

drop-dead charm.”Jerry Hirshberg, Nissan Design International

Object of Desire!

“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in

point: the iMac. Suddenly, a computer

is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.”

Katherine McCoy & Michael McCoy, Illinois Institute of Technology

“The good 10 percent of American product design comes

out of big-idea companies that don’t believe in talking to the

customer. They're run by passionate maniacs who make everybody’s life miserable until

they get what they want.”

Bran Ferren, Applied Minds/Wired 1-2001

“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

Check Out the Language:

“Tomorrow it’s design …”“Design is the only thing …”

“Design is … religion ...”“Drop-dead charm …”“Object of desire …”

“Passionate maniacs …” “Fundamental soul …”

Bottom Line.

Design “is” … WHAT & WHY I LOVE.

LOVE.

I LOVE my ZYLISS Garlic Peeler!

All Time No.1 (TP)

Ziplocs

Design “is” … WHY I

GET MAD. MAD.

Wanted: THE DESIGNER OF MY

RADIO SHACK PHONE. Major

Reward!

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)

11. Design+ = “Beautiful” Systems.

Fred S.’s “mediocre” thesis. Herb K.’s

napkin.

Great design = One-page

business plan (Jim Horan)

K.I.S.S.: Gordon Bell (VAX

daddy): 500/50. Chas.

Wang (CA): Behind schedule?

Cut least productive 25%.

Systems: Must have. Must

hate. / Must design. Must un-

design.

Mgt. Team

includes … EVP (S.O.U.B.)

Executive Vice President, Stomping Out Unnecessary Bullshit

“Ninety percent of what we call ‘management’ consists of making it difficult for people to

get things done.” – P.D.

First Steps: “Beauty Contest”!

1. Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form.

2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work

of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity.

3. Re-invent!4. Repeat, with a new selection, every 15 working

days.

12. “It” all adds up

to … THE BRAND.

The Heart of Branding …

“WHO ARE WE?”

“Most companies tend to equate branding with the company’s marketing. Design a new marketing

campaign and, voilà, 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

“WHAT’S OUR

STORY?”

“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

“Apple opposes, IBM solves, Nike exhorts,

Virgin enlightens, Sony dreams, Benetton

protests. … Brands are not nouns but verbs.”


DO THE HOUSEKEEPERS & CLERKS “BUY

IT”? [ARE YOU V-E-R-Y SURE?]

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

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:

See the next slide.)

Source: Jump Start Your Business Brain, Doug Hall

2 Questions:

“How likely are you to purchase this new product or service?” (95% to 100% weighting by execs)

“How unique is this new product or service?” (0% to 5%*)

*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

“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

“Instead of having the brand be seen as good-better-best for the same type of clothing, they’ve

got to give it more uniqueness.” —David Martin,

Interbrand US, on The Gap’s problems

“You do not merely want to be the best of the best. You

want to be considered the only ones who do

what you do.”

Jerry Garcia

“A great company is defined by the

fact that it is not compared

to its peers.”Phil Purcell, Morgan Stanley

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

“We’re not going to be driven by where we think a funding

agency would like to see us go. We’re going to build our case …

and then find an organization that agrees with us.”

Stephen Spongberg, Polly Hill Arboretum

“WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DRAMATIC DIFFERENCE TO THE

CLIENT ?”

“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, 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) Try ’em on a

skeptical Client!

Branding: Is-Is Not “Table”

TNT is not: TNT is: TNT is not:

Juvenile Contemporary Old-fashioned

Mindless Meaningful Elitist

Predictable Suspenseful Dull

Frivolous Exciting Slow

Superficial Powerful Self-important

“Salt is salt is salt. Right? Not when it

comes in a blue box with a

picture of a little girl carrying an umbrella. Morton International continues to

dominate the U.S. salt market even though it charges more for a product that is

demonstrably the same as many other products

on the shelf.”

Tom Asaker, Humanfactor Marketing

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

V. NEW BUSINESS. NEW

WORK.

13. Toward Work that Matters: The

WOW Project.

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Language matters! Wow! BHAG! “Takes

your breath away!”

“Let’s make a dent in the universe.”

Steve Jobs

Your Current Project?

1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

Measures

–WOW!–Beauty!–Raving Fans!–Impact!

Language

matters!

“We shape our buildings. Thereafter

they shape us.”—WSC

“We shape our words. Thereafter

they shape us.”—TJP

“Astonish me!” / S.D.

“Build something great!” / H.Y.

“Immortal!” / D.O.

Motto: No damn

J.A.M.S.

14. WOW Projects for the “Powerless”: A

Surefire Recipe.

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

World’s Biggest Waste …

Selling “Up”

THE IDEA: Model F4

Find a Fellow

Freak Faraway

F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.

And …

K2KK*S2SS***Kook to Kooky Kustomer

**Skunk to Scintillating Supplier

BOTTOM LINE

The Enemy!

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!

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

“Nobody gives you power. You just take it.”—Roseanne

Kurt Carlson to young Marilyn

Carlson: “If you don’t like Sunday School,

change it!” (She did.)

“ ‘Obeying the rules’ is

obeying their rules. [Women] can never be

powerful as long as they try to be in charge in the same

way men take charge.”Harriet Rubin,

The Princessa: Machiavelli for Women

“Don’t just express yourself. Invent yourself. And don’t

restrict yourself to off-the-shelf models.”—Henry Louis Gates, Jr.,

commencement address, Hamilton College

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”*Fortune, article on “Most Admired Global Corporations”

Epitaphs Epitaphs

from from

HellHell

Joe J. Jones Joe J. Jones 1942 – 20021942 – 2002

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T HIS BOSS WOULDN’T

LET HIM! LET HIM!


HE MADE BUDGET! HE MADE BUDGET!

(AGAIN & AGAIN.)(AGAIN & AGAIN.)


HIS NET WORTH WAS $11,000,000.HIS NET WORTH WAS $11,000,000.


HE HIT QUARTERLY HE HIT QUARTERLY

EARNINGS TARGETS 44 EARNINGS TARGETS 44

TIMES IN A ROW.TIMES IN A ROW.

WHO WILL GO TO STOCKHOLM? (Damn it.)

“Very simple. I never edited

books I didn’t love.” — J.O., on her consistent

success as an editor

If you are not prepared to be fired over your

beliefs … you are working on the

wrong project - TP

IMPLEMENTATION SECRETS. Credibility. Demos & End Runs & Being There. Mr. OSHA Maine. Find three COs. Seek

determined alumnae. Go to Bangkok. (Forget: “How do I

erase the old?” Supplant rather than change the regnant

heirarchs.)

It’s politics, stupid! (Play or sit on the sidelines.)

15. Bringing WOW Work to Fruition:

The Sales25.

The Sales25: Great Salespeople …

1. Know the product. (Find cool mentors, and use them.)

2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

It’s politics, stupid! (Play or sit on the sidelines.)

Great Salespeople …

8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)


12. Think “Turnkey.” (It’s always your problem!)

13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)

14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business. (Even if it gets you fired.)

16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.


21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!

16. Boss Work: Demos, Heroes,

Stories … Or: Starting a WOW Projects

Epidemic.

Premise: “Ordering” Systemic Change is a Stupid Waste

of Time!

Demos! Heroes! Stories!

Leapfrog Group: “Lead Frogs”

Demo = Story

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

effective communication of a story.”

Howard Gardner, Leading Minds: An Anatomy of Leadership

MBSA!*

*Managing By Story-ing Around/David Armstrong

Culture of Prototyping

“Effective prototyping may be

the most valuable core competence an innovative organization can

hope to have.”

Michael Schrage

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

He who has the quickest O.O.D.A.

Loops* wins!*Observe. Orient. Decide. Act. /

Col. John Boyd

“Success is the ability to go from failure to

failure without losing your enthusiasm.”

Winston Churchill (as quoted by John Peterman)

“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

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

VI. NEW BUSINESS. NEW

YOU.

17. Re-inventing the Individual: Brand

You/ You Inc./ Free Agent Nation (Or Else.)

New World of Work

< 1 in 10 F500#1: Manpower Inc.

Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27M

Total: 31M-55MSource: Daniel Pink, Free Agent Nation

“If there is nothing very special about

your work, no matter how hard you apply yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2002

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

Sam’s Secret #1!

Minimum New Work SurvivalSkillsKit2001

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

“My ancestors were printers in Amsterdam from 1510 or so until

1750, and during that entire time they didn’t have to learn anything

new.”Peter Drucker, Business 2.0 (08.22.00)

“Knowledge becomes obsolete incredibly fast. The

continuing professional education of adults is the

No. 1 industry in the next 30 years … mostly on line.”

Peter Drucker,Business 2.0 (22August2000)

3 Weeks in May

“Training” & Prep: 187“Work”: 41

(“Other”: 17)

1% vs.

367%

Divas do it. Violinists do it. Sprinters do it. Golfers do it.

Pilots do it. Soldiers do it. Surgeons do it. Cops do it.

Astronauts do it. Why don’t businesspeople do it?

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

Invent. Reinvent. Repeat.

Source: HP banner ad

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

PRECEDENT!

“No prudent man dared to be too certain of exactly who he was.

Everyone had to be prepared to become someone else. To be

ready for such perilous transmigrations was to become

an American.”—Daniel Boorstin

Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].– My current Project is challenging me …– New things I’ve learned in the last 90 days include …– My public “recognition program”

consists of …– Additions to my Rolodex in the last 90 days include …

–My resume is discernibly different from last year’s at this time …

T.T.D./Assignment

Construct a 1/8-page or 1/4-page ad for

Brand You … for the Yellow Pages

They “Get it”?!– stone mason– electrician– plumber– tiler– cabinet maker– contractor– blacksmith– well driller– blaster– sheep shearer– etc.

“When was the last time you asked,

‘What do I want to be?’ ” Sara Ann Friedman, Work Matters

“The time seems appropriate to rethink the

notions of self and identity in this rapidly

changing age …”

Tara Lemmey, Project LENS, past president Electronic Frontier Foundation

“I am an American, Chicago born, and go at things as I have taught myself, free-style, and will make the record in my own way.”

Saul Bellow, The Adventures of Augie March

“I don’t think there’s anything worse than being

ordinary.”American Beauty

In Store: International Equality, Intranational Inequality

“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great

rewards for merit and great individual autonomy. This will leave individuals far more responsible for

themselves than they have been accustomed to being during the industrial period. It will also reduce the

unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies

throughout the 20th century.”

James Davidson & William Rees-Mogg,The Sovereign Individual

Thriving in 24/7 (Sally Helgesen)

START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of

where we are.

LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.

CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your

own business.

WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking

people up.”

THE I work for a company called

Me STREET JOURNAL

Adventures in Capitalism

THE rise up and flee your cubicle STREET JOURNAL

Adventures in Capitalism

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

18. Boss Job One:

The Talent Obsession.

Brand = Talent.*

*Duh.

The Talent Ten

1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

Model 25/8/53

Sports Franchise GM

“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,

Organizing Genius

Visibly energetic/ Passionate/ Enthusiastic … about everything.

Engaging/ Inspires others. (Inspires the interviewer!)

Loves messes & pressure. Impatient/ Action fanatic.

A finisher.Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about

her work.)Smart.

Curious/ Eclectic interests/ A little (or more) weird.Well-developed sense of humor/ Fun to be around.

******

No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: “Did you visibly grow while

working with X?” / “How has the department/team grown on a ‘world-class’ scale during X’s tenure?”)

2. Greatness

Only The Best!

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

“Differentiation is all about being extreme, rewarding the best and

weeding out the ineffective. … You build strong teams by treating

individuals differently. Just look at the way baseball teams pay 20-

game winning pitchers and 40-plus homerun hitters.”—Jack Welch

3. Performance

Up or out!

“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

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

4. Pay

Fork Over!

“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)

5. Youth

Grovel Before the Young!

“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”

6. Diversity

Mess Rules!

“Where do good new ideas come from? That’s simple! From

differences. Creativity comes from unlikely juxtapositions.

The best way to maximize differences is to mix ages, cultures and

disciplines.”

Nicholas Negroponte

“Diversity defines the health and wealth of nations in a new

century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the

blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth.

Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs

economic growth and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

CM Prof Richard Florida on

“Creative Capital”: “You cannot get a technologically

innovative place unless it’s open to weirdness,

eccentricity and difference.”

Source: New York Times/06.01.2002

“Expose yourself to the best things humans have done and then try to bring those things

into what you are doing.”

Steve Jobs, on the eclectic nature of the teams he concocts; people of

“extraordinary tastes” with “intriguing backgrounds”

“Capitalism and the conditions for creating wealth have changed in ways that play to the strengths of hybrid

individuals, organizations and nations. And those that wish to profit from changing economic conditions must view hybridity as their first and best option. This bold

claim warrants an explanation. The ability to apply knowledge to new situations is the most valued

currency in today’s economy. Highly creative people … are misfits on some level. They tend to question

accepted views and consider contradictory ones. This appreciation defines the mongrel mentality. Strangers

instinctively question things that natives take for granted. Many things strike them as odd or stupid. …”

G. Pascal Zachary, The Global Me

7. Women

Born to Lead!

“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

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

“Guys want to put everybody in their hierarchical place. Like, should I have more

respect for you, or are you somebody that’s south

of me?”Paul Biondi, Mercer Consultants [from It’s Not Business, It’s Personal, Ronna Lichtenberg]

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

“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-

first-century economic community are going to need the natural

talents of women.”Helen Fisher, The First Sex: The Natural Talents of

Women and How They Are Changing the World

“American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one

organization and one country from another will be its use of human

resources. Today human resource utilization is not only a matter of social

justice but a bottom-line issue.”

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

“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

“Thank you”

17 Men: 84 Women: 19

Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team

“In a lot of countries of the world, it would be very difficult for a woman to

be a good CEO. … I have a responsibility to do the best we can for

shareholders.” * **

*Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face

… to Margaret Thatcher or Carly Fiorina? (I would.)

Okay, you think I’ve gone tooooo far.

How about this: DO ANY OF YOU SUFFER

FROM TOO MUCH TALENT?

63 of 2,500 top earners in F500

8% Big 5 partners

14% partners at top 250 law firms

43% new med students; 26% med

faculty; 7% deans

Source: Susan Estrich, Sex and Power

Opportunity!

U.S. G.B. E.U. Ja.

M.Mgt. 41% 29% 18% 6%

T.Mgt. 4% 3% 2% <1%

Peak Partic. Age 45 22 27 19

% Coll. Stud. 52% 50% 48% 26%

Source: Judy Rosener, America’s Competitive Secret

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

Read This!

“Winning the Talent War for Women: Sometimes It

Takes a Revolution” Douglas McCracken, HBR [11-12/2000]

“Deloitte was doing a great job of hiring high-performing women; in fact, women often earned

higher performance ratings than men in their first years with the firm. Yet the percentage of women

decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male-dominated culture and found them wanting.

Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched

professions.”

Douglas McCracken, “Winning the Talent War for Women” [HBR]

“The process of assigning plum accounts was largely unexamined. …

Male partners made assumptions: ‘I wouldn’t put her on that kind of

company because it’s a tough manufacturing environment.’ ‘That

client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ”

Douglas McCracken, “Winning the Talent War for Women” [HBR]

“Would Congress [the Boardroom] be a different place if half the members

were women?”

From Sex and Power, Susan Estrich

8. Weird

The Cracked Ones Let in the Light!

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

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

“A great idea always comes from one person’s

mind, someone who is, by definition, local. If you place 10

people in Brussels to conceive a European [ad/marketing]

campaign, you’ll get nothing.”Source: Jean-Marie Dru, Disruption

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)

“The A students work

for the B students. The

C students run the

business. The D students dedicate the buildings.” —Assertion to Kinko’s founder

Paul Orfalea from his Mom (Fortune/05.13.02)

“Most good ideas are born out of a little sketch. [They] probably don’t occur when everybody is sitting around

a table, but rather when you’re having something to

eat or having a talk in a bar.”—Adrian Caddy, Imagination

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Human

Enablement

Department

10. Leading Genius

We are all unique!

Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

48 Players = 48 Projects =

48 different success measures.

MantraM3

Talent = Brand

What’s your company’s …

EVP?Employee Value Proposition, per Ed

Michaels et al., The War for Talent

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward

Source: Ed Michaels et al., The War for Talent

The Top 5 “Revelations”

Better talent wins.

Talent management is my job as leader.

Talented leaders are looking for the moon and stars.

Over-deliver on people’s dreams – they are volunteers.

Pump talent in at all levels, from all conceivable sources, all the time.

Source: Ed Michaels et al., The War for Talent

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

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!

First Steps

Make a list of the traits you really want to unearth. (TP &

“sense of humor;” GR & jaywalking.)

Promote for TDS/Talent Development Skills.

Work up an EVP.

ADDENDA: Tom Peters’

The

Talent50

The Talent50

1. People first!2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added.4. Talent “excellence” in every part of the organization.5. P.O.T./Pursuit Of Talent = Obsession.6. HR sits at The Head Table.7. HR is “cool.”

The Talent50

8. Re-name “HR.” (Talent Department, Center of Talent Excellence)9. There’s an HR Strategy10. There is a FORMAL Recruitment Strategy.11. There is a FORMAL Leadership Development Strategy.12. There is a “world class” Leadership Development Center.13. There is a FORMAL-STRATEGIC HR Review Process.14. The “Top100,” and every unit’s Top10, are consciously managed.

The Talent50

15. “People/Talent Reviews” are the FIRST reviews.16. HR Strategy = Business Strategy.17. Make it a Cause Worth Signing Up For..

18. Set Sky High Standards.19. Enlist everyone in Challenge Century21.20. Pursue the Best!21. Up or Out.22. Ensure that the Review Process has INTEGRITY.23. Pay!

The Talent50

24. Training I: Train! Train! Train!25. TII: 100% “business people.”26. TIII: 100% Leaders.27. TIV: Boss as Trainer-in-Chief.28. Open Communication I: NO BARRIERS.29. Open Communication II: Share Information. (ALL!)30. Respect!31. INTEGRITY!32. Treat the Whole Individual.

The Talent50

33. Places of “grace.”34. MBWA: The “Rudy Rule.”35. Thank You!36. Promote for “people skills.” (ALL ELSE IS SECONDARY.)37. Honor youth.38. Early leadership assignments.39. Fast Tracking is the norm.40. Create a System of Mentoring.

The Talent50

41. Diversity!42. Diversity starts on the Board of Directors.43. WOMEN RULE.44. Weird Wins.45. We are all unique. 46. Bosses “win people over.”47. GOAL: Adventures of Mutual Discovery.48. Foster Independence.49. Enthusiasm!

The Talent50

50. Talent = Brand.

VII. NEW BUSINESS: (NEW) BRAND INSIDE RULES

Message2002 …

BI > BO

19. THINK WEIRD … the HVA/

High Value Added Bedrock.

The Cortez Strategy!

THINK WEIRD: The High Standard

Deviation Enterprise.

Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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

“The future has already happened. It’s

just not evenly distributed.”

Adrian Slywotzky

“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

“I made a note. I’m going after

[PIONEER CO.], not the two ‘establishment firms’ who were formerly at the top of my 2001 target list. We need a jolt.

Things are going too well.”

Sales Exec, high-tech superstar

W.I.W?

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

Account planning has become “focus group balloting.”

—Lee Clow

“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo

to create an unsustainable series of competitive advantages. This is not an age of defensive

castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable

advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the

only level of competition.”

Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

“BIG DRUG MAKERS TRY TO POSTPONE

CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are

prescribed, and experts believe genetic differences are part of the reason. The

technology for genetic testing is now in use. But the technique threatens to be so disruptive to the

business of big drug companies – it could limit the market for some of their blockbuster

products – that many of them are resisting its widespread use.”

The Wall Street Journal (06.18.2001)

“Generally, disruptive technologies underperform

established products in mainstream markets. But they have other features that a few

fringe (and generally new) customers value.”

Clayton Christensen, The Innovator’s Dilemma

“Sony is the epitome of discontinuity. It sees all its competitors’ accomplishments

merely as conventions to be overturned.”


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

“Enormous sums of money are invested to reduce cycle time, improve quality,

reengineer … Much of this money is simply wasted. The waste is due to companies’

inability to develop wide-angle vision and tap into the … power of the edge.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe

Competitors, Lost Customers, and Rogue Employees

“Corporate consciousness is predictably centered around the

mainstream. The best customers, biggest competitors, and model

employees are almost invariably the focus of attention.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,

Lost Customers, and Rogue Employees

WE BECOME WHO WE

HANG WITH!

Message: TAKE SOMEONE NEW & WEIRD TO LUNCH

TODAY OR TOMORROW. [Inundate yourself with weird.]

?????“Come up with three

‘Crazy Ideas,’ one of which might

work.”

Fr Timothy Radcliffe, Master of the Dominicans,

to his friars

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

Advice to Corporate Leaders: “Consider the metaphor of the windmill: You can harness raw

power but you can’t control it. … Hire artists, clowns, or other disrupters to come in and

challenge your corporate environment. … Hire a corporate anthropologist to analyze how tolerant

your organization is of deviants and other

innovators. … Once the anthropologist leaves, hire a shaman to drive out the

evil spirits of conformity. …”


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.”


Innovation Source No. 1*:

PPPs/Personally Pissed-off

People

“Branson started Virgin Atlantic because flying other airlines was

so dreadful.” —Fortune/05.13.2002

*And there is no No. 2!

“As Francois Dalle, the chairman of L’Oreal, puts it, the

planner must … catch what is barely beginning.”


Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual

Pioneer [Weird] Acquisitions

Pioneer Customers & Alliance Partners [Measure the Portfolio’s S.D.]

Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]

Pioneer Assignments/Pioneer Projects [F2F & K2K]

Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board

Weed Un-weird [“One Sigma” “Talent,” etc.]

Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird

R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]

Sense of Humor [Rhapsodize Over Thine Failures]

Re-enforce a “Culture of Disrespect”/Piracy

Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual

Pioneer [Weird] Acquisitions

Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]

Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]

Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]

Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board

Weed Un-weird [“One Sigma” “Talent,” etc.]

Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird

R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]

Sense of Humor [Rhapsodize Over Thine Cool Failures!]

Re-enforce a “Culture of Disrespect”/PassionatePiracy

Button-down Org H.S.D.E. .

• Acquire for market share• Suck up to biggest customers• Pursue “strategic vendors”• Bigger is better• Accept assignments as given• Hire 4.0s from “top schools”• Promote when they’ve “paid

their dues”• Appoint a “prestigious” board

• Hang out with my pals• R.A.F.• Be “professional” at all

times/Honor thine elders

• Acquire for innovation• Partner with cool customers• Seek out pioneering vendors• Break it up … to refresh• Reframe all tasks to innovate• Hire “intriguing,” wherever• Promote tomorrow if the work

product is weird and WOW• Appoint an interesting,

headstrong board• Take a freak to lunch today• F.F.F.• Stay loose, stay cool/The hell

with thine elders

?????: Get better organized to do good

workvs.

Get better disorganized to do great work

20. Brand Inside

Summary: The 10 Basics

Message2002 …

BI > BO

The Brand Inside10BI1. The Execution Imperative: An “Action Culture”BI2. Cherish FailuresBI3. Dent the Universe: WOW Projects/BHAGsBI4. “Tell Me a Story”: Demo ManiaBI5. Cut the Crap: WebWorld = ALLBI6. “Beautiful” SystemsBI7. The Modified Basis for Value Added: The New “Brand Inside Warriors”BI8. Talent TimeBI9. The “HSDE”: Weird Begets WeirdBI10. A Brand New/Brand You World

21. Tomorrow’s Organizations …

Itinerant Potential Machines.

New Organizational World: Shifts of Emphasis

Staffing Fat ThinOrganization Vertical HorizontalWorkforce Homogeneity DiversityPower Source Status/Command Rights Expertise/RelationshipsLoyalty Company ProjectCareer Asset Organizational Capital Reputational Capital

Source: “The Workforce of the Future,” IHRIM Journal (12.2000)

TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to “make their

bones” in “the revolution.”Love the new technologies. Well rewarded. Don’t plan to

be around 10 years from now.

TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often

needed). “We aim to change the world, and we need gifted colleagues—who well may

not be on our payroll.”

BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT.

Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180

degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME

HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS

AND PROJECTS.

BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with

shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?”

Appreciate “market creation” as much as or more than “market share growth.” ARE

INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS,

AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD,

FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter.

McNealy. Walton. Case. Etc.)

ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A

SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER.

Including vendors and consultants and … especially … PIONEERING CUSTOMERS …

who will “pull us into the future.”

TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all

outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share

this (radical) vision.

POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing

things.”

VIII. NEW BUSINESS. NEW

BEDROCK. (Or: Upending The Big 3.)

22. Brand Talent+:

Addressing the Education

Fiasco

“At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.”


FES/NOV2001: New Work. New Education.

The Twain Must Meet.

TP Mood

Anger.Despair.

Hopelessness.

Losing the War to Bismarck (and Rockefeller)

J. D. Rockefeller’s General Education Board

(1906): “In our dreams people yield themselves with perfect docility to our

molding hands. … The task is simple. We will organize children and teach

them in a perfect way the things their fathers and mothers are doing in an imperfect way.”

John Taylor Gatto, A Different Kind of Teacher

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding

refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ”Jordan Ayan, AHA!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND

GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out

of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:

Every school I visited was participating in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

An Unnatural Way to “Learn”

Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in

featureless rooms … sort children into rigid categories by the use of fantastic measures such as

age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving

them of private time and space …


Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to

discriminate qualities quantitatively … insist that every moment of time be filled with low-

level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their

active learning time to acquire.”


Doing Stuff that Matters!

“During the first years of life, youngsters all over

the world master a breathtaking array of

competences with little formal tutelage.”

Howard Gardner, The Unschooled Mind

The Learner’s Manifesto

The brain is always learning.Learning does not require coercion.

Learning must be meaningful.Learning is incidental.

Learning is collaborative.The consequences of worthwhile learning

are obvious.Learning always involves feelings.

Learning must be free of risk.

Frank Smith, Insult to Intelligence

“Really bright kids who just needed to get excited” —teacher,

Oakley School

Tom’s Edu3M

Manifesto**Manifesto for Education in the 3rd Millennium

Education3MLearning is a normal state.Children are learnavores.

Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]

We learn at different rates.We learn in different ways.

Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.

Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.

There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real

world” standards.

Education3M

We learn most/fastest/most completely when we are passionate about what we are learning and it

matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/

Learning by Internship.Classrooms are abnormal places.

We need changes of pace. [Japanese recesses after each class.]

International test scores are not correlated with hours-per-year in class.

Big classes are slightly problematic. Big schools suck. Period.

Education3M

“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]

U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.

Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]

Teachers need enough space-time-flexibility to get to know kids as individuals.

Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

Education3M

Our toughest “learning achievement”—mastering our native language—does not

require schools, or even competent parents. [It does require a desperate need-to-know.]

Great teachers are great learners, not imparters-of-knowledge.

Great teachers ask great questions—that launch kids on lifelong quests.

The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly

sophisticated questions—just ask a ski instructor or neurosurgeon.

Education3M

Most schools spend most of their time setting up contexts in which kids learn not to like

particular subjects. [Evidence shows that such anti-learning sticks!]

Vigorous exploration is normal … until you are incarcerated in a school.

“Bite size” education-learning is neither education nor learning.

Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in

the hyper-structured classroom.

Education3M

The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the

wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail

to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.

Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”

Schools of “education” should by and large have their charters revoked.

Education3M

Stability is dead; “education” must therefore “educate” for an unknowable,

ambiguous, changing future; thence, learning to learn & change is far more

important than mastery of a static body of “facts.”

“Education” must “develop in youth the capabilities for engaging in intense concentrated

involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]

“The boys who made the best ‘Grotties’ usually

turned out to be nonentities later; boys who hated

Groton did much better.”FDR biographer John Gunther (quoted in Whoever Makes the

Most Mistakes Wins, Richard Farson & Ralph Keyes)

“Fail . Forward.

Fast.”High Tech CEO, Pennsylvania

Read This!

Richard Farson & Ralph Keyes: Whoever Makes the Most

Mistakes Wins: The Paradox of Innovation

Ye gads: “Thomas Stanley has not only found no correlation between success in school and an

ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-

related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.

Yet the success-failure standards of most schools penalized risk takers. Most educational

systems reward those who play it safe. As a result, those who do well in school find it hard to

take risks later on.”Richard Farson & Ralph Keyes, He Who Makes the Most Mistakes Wins

23. Revolution

Required: The Healthcare

Mess.

“Parents, doctors, stockbrokers, even military leaders are starting to

lose the authority they once had. There are all these roles premised on access to privileged information. …

What we are witnessing is a collapse of that advantage,

prestige and authority.”Michael Lewis, next

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

Reuters (12.11.01): “Teens and young adults are flocking to the Web for

health-related information as much as they are downloading music and playing games online and

more often than shopping online, according to a national survey

from the Kaiser Family Foundation.”

“One in Four Internet Users Seek Religious

Information”—Reuters

(12.24.2001) (“God trumps money, sex.”)

Impact #1:

Healthcare

HealthCare2001

Consumerism X Demographics X

IS/Internet X Info Consolidators X Genetics & Devices

= YIKES!

1. Consumerism (Patient-

centric Healthcare)

“A seismic shift is underway in healthcare. The Internet is

delivering vast knowledge and new choices to consumers—raising their

expectations and, in many cases, handing them the controls.

[Healthcare] consumers are driving radical, fundamental change.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

Reuters (12.11.01): “Teens and young adults are flocking to the Web for

health-related information as much as they are downloading music and playing games online and

more often than shopping online, according to a national survey

from the Kaiser Family Foundation.”

Consumer Imperatives

ChoiceControl (Self-care, Self-management)

Shared Medical Decision-makingCustomer Service

InformationBranding

Source: Institute for the Future

“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention. Info availability (disease, health, docs,

support groups, outcomes). Self-care (chronic disease). High expectations (genetics, etc.). Boomers (see below). …

“Savior for the Sick”

vs.

“Partner for Good Health”

Source: NPR/VPR 08.15.00

“He shook me up. He put his hand on my shoulder, and simply said,

‘Old friend, you have got to take charge of your own medical care.’ ”Hamilton Jordan, No Such Thing as a Bad Day

(on a conversation with a doctor pal, following Jordan’s cancer diagnosis)

2. Demographics: The BOOMERS

Reach 55!

Boomer World

“From jogging to plastic surgery, from vegetarian diets

to Viagra, they are fighting to preserve their youth and

defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the

Information Revolution and Branding”

Message Boomer: (1) “There are

l-o-t-s of us.” (2) “We have

the $$$$$$. (3) “We’re/I’m in charge!” (4) “We’ll take no

guff from anyone.” (5) “We

know the emperor has no clothes.”

3. The IS/Web REVOLUTION

“We’re in the Internet age, and the average

patient can’t email their doctor.”

Donald Berwick, Harvard Med School

“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





outmaneuver and outfight any foe.” --Bill Owens, Lifting the Fog of War

“Without being disrespectful, I consider the U.S. healthcare delivery system the largest cottage industry in

the world. There are virtually no performance measurements

and no standards. Trying to measure performance … is the next

revolution in healthcare.”Richard Huber, former CEO, Aetna

“As unsettling as the prevalence of inappropriate care is the enormous amount of

what can only be called ignorant care. A surprising 85% of everyday medical

treatments have never been scientifically validated. … For instance, when family practitioners in Washington were queried about treating a simple urinary tract

infection, 82 physicians came up with an extraordinary 137 strategies.”

Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

“In health care,

geography is destiny.”

Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age,

Michael Millenson

Geography Is Destiny

E.g.: Ft. Myers 4X Manhattan—back surgery. Newark 2X New Haven—

prostatectomy. Rapid City SD 34X Elyria OH—breast-conserving surgery. VT, ME, IA: 3X differences in hysterectomy by age 70; 8X tonsillectomy; 4X prostatectomy

(10X Baton Rouge vs. Binghampton). Breast cancer screening: 4X NE, FL, MI

vs. SE, SW. (Source: various)

Geography Is Destiny

“Often all one must do to acquire a disease is to enter a country where a disease is

recognized—leaving the country will either

cure the malady or turn it into something else. … Blood pressure considered treatably high in the United States might be considered normal in England; and the low blood pressure treated with 85 drugs as well as hydrotherapy and spa

treatments in Germany would entitle its sufferer to lower life insurance rates in the

United States.” – Lynn Payer, Medicine & Culture

“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural

consequence of a system that systematically tracks neither its processes nor its outcomes,

preferring to presume that good facilities, good intentions and good training lead automatically

to good results. Providers remain more comfortable with the habits of a guild, where

each craftsman trusts his fellows, than with the demands of the information age.”

Michael Millenson, Demanding Medical Excellence

CDC 1998: 90,000 killed

and 2,000,000 injured from nosocomial

[hospital-caused] drug errors & infections

“Quality of care is the problem, not managed care.”

Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)

RAND (1998): 50%, appropriate preventive care. 60%,

recommended treatment, per medical studies, for chronic

conditions. 20%, chronic care treatment that is wrong.

30% acute care treatment that is wrong.

“In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to

calculate medication doses. Eight out of 10 made calculation mistakes at

least 10% of the time, while four out of 10 made mistakes 30 % of the

time.”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

The EMS Myth

“Speed has never saved anybody’s life. Period.”—W.H.

Leonard, Medical Transportation Insurance Professionals

Source: USA Today (03.21.02)

1,000,000 “serious

medication errors per year” … “illegible handwriting, misplaced decimal points, and missed drug

interactions and allergies.”

Source: Wall Street Journal/ Institute of Medicine

Answer: (1) Physician order-entry system, (2)

stick to treatment guidelines for high-risk

patients, (3) adequate ICU staffing.

The perils/costs of folk wisdom:

Pills vs. IV/$100. Per use.

“Patient by patient, problem by problem—drug reactions, hospital

caused infections—Salt Lake City’s LDS Hospital has attacked treatment-

caused injuries and deaths. One of the secrets of LDS’s success is a custom-

built clinical computer system that may serve as a national model for how

to save patient lives.”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

The VHA gets it! E.g.: Laptop at bedside calls up patient e-records from one of 1,300 hospitals. Bar-coded wristband confirms meds. National Center for Patient Safety in Ann Arbor. Docs and researchers

discuss optimal treatment regimens—research center in Durham NC. Doc measures & guidelines; e.g.,

pneumonia vaccinations from 50% to 84%. Blame-free system, modeled after airlines. “What’s needed in the U.S. is nothing short of a medical revolution and

the VHA has gone further than most any other organization to revamp its culture and systems.”—

Rand/Source:WSJ 12.10.2001

“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.

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 Edmonson & the successful nursing units with the highest reported adverse drug events.

Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected

4. Information Consolidators: The Network Maestros

“America has twice as many hospitals and physicians as

it needs.”Med Inc., Sandy Lutz, Woodrin Grossman

& John Bigalke

“The future of hospitals is murky. A combination of technological advances,

managed care, and changes in Medicare reimbursement policy

means that the underlying demand for inpatient services

will continue to fall.”Institute for the Future

“Virtual health care webs force providers to focus on their areas of excellence and to

invest in areas where they can generate a sustainable

competitive advantage.”

Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide

WebMD (or heirs

& assigns)

5. Genetics & Devices

“Recognizing that a single misspelled gene means the difference

between being poisoned and being cured was the

first victory for the new science of pharmacogenetics.”

Newsweek (06.25.01)

Genetic data: 2X every 6 months.

Source: FT, 11.27.2001

“Pharmacogenomics could

fundamentally change the nature of drug discovery and marketing,

rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and

money to craft a single medicine with mass-market appeal.”

The Industry Standard (05.28.01)

E.g., Genentech’s Herceptin, useful in 25% of advanced breast cancer cases.

Would probably have been uneconomic if subjected to 9X

patients in phase III clinical trials.

Source: FT (11.27.01)

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)

Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-

guided munitions, and it marks a sea change for the industry. The implications for existing

business models are devastating.” Allen Roses, SVP Genetic Research, GlaxoSmithKline:

“minibuster.” Rob Arnold, Euro head of life sciences, PWC: “Once you start dealing with minority

treatments, small biotechs who are more nimble and don’t need $500-million-a-year drugs to make

money could be at a real advantage.”

“BIG DRUG MAKERS TRY TO POSTPONE

CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are

prescribed, and experts believe genetic differences are part of the reason. The

technology for genetic testing is now in use. But the technique threatens to be so disruptive to the

business of big drug companies – it could limit the market for some of their blockbuster

products – that many of them are resisting its widespread use.”

The Wall Street Journal (06.18.2001)

Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100

“survivors” underperformed the

market by 20%; just 2 (2%), GE & Kodak, outperformed the market from

1917 to 1987.

Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

Biotechs: Amgen, Genentech, Biogen, Genzyme, Celltech,

ImClone Systems. Bioinformatics: Accelrys, Cognia, Double Twist,

IBM Lifesciences, NetGenics, SAS Institute.

“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the

operating table. That day may come sooner than you think.”

Newsweek (06.25.01)

“There is no question in my mind that the future of heart

surgery is in robotics.”

Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-

bypass surgery

Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 30M-70M uninsured. 90K killed and

2M injured p.a. in hospitals. 85% treatments unproven. Cure depends on

locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS

primitive. Accountability & measurement nil. And everybody’s mad and feels powerless: docs, patients, nurses,

insurers, employers, hospitals administrators and staff.

Message: (1) An unparalleled time

for imagination and bold action. (2) A time of unprecedented

opportunities. (3) A time

of unprecedented risk.

HealthCare21

HealthCare21: 21 Ideas for Century211. Hospitals kill people. (And many of those they don’t kill, they wound.) (And they deny it.) (ERRORS RULE!) And: Hustling ambulances kill pedestrians—and don’t save patients.2. Doctors are spoiled brats—who don’t like measurements. Or any form of “interference.” Docs are also cover-up artists. The REAL Hippocratic Oath: “DON’T RAT ON A FELLOW DOC”. 3. Most prescription drugs don’t work—for a PARTICULAR patient. Current drugs = Blunderbusses.4. Think … WELLNESS. Think … PREVENTION.5. THERE IS LITTLE “SCIENCE” IN “MEDICINE.” (See state to state variations … country to country variations … the general lack of agreed upon treatments.)6. You could save thousands of lives (think Schlindler)—if you just outlawed handwritten prescriptions.7. “Detailers” will disappear … when GenX docs arrive.

HealthCare21 (Cont.)8. IS/IT in hospitals is sub-primitive (despite enormous expenditures).

9. Systemic IS/IT is worse—links between docs, insurers, providers, patients.10. ELECTRONIC MEDICAL RECORDS …TO UNIFORM STANDARDS. (NOW.) (PLEASE.) 11. THE WEB WILL LIBERATE. (Info = Power.) (BELIEVE IT.) 12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e CONTROL. NOW. “LEADERSHIP” OF AGING PROCESS.)13. “Drug Discovery” processes at Big Pharma are … hopelessly over-complicated. (???: Bye Bye … Big Pharma.)14. 90% of the “healthcare fix”: HARVEST THE LOW-HANGING FRUIT. “They” are … NOT … the Enemy. “I have seen the enemy … and it am me.” Damn it.

HealthCare21 (Cont.)15. The number of U.S. un-insured is the nation’s #1 disgrace. That said, insured “consumers” are spoiled brats. They/we/me act as if healthcare were a free good … and believe that an incipient hangnail calls for at least a CAT scan … or two. ANSWER: MAKE US FEEL THE PAIN.

16. Genetic engineering & biotech change … EVERYTHING. (Within 15 years.)17. New Medical Devices change … EVERYTHING. (Within 15 years.)18. IS/IT changes … EVERYTHING. (Within 10 years.)19. New Docs change … EVERYTHING. (Within 10 years.)20. New Patients change … EVERYTHING. (Within 5 years.)

* *

HealthCare21 (Cont.)

21. ALL THIS = ENORMOUS OPPORTUNITY. The

Opportunity of Several Lifetimes. (For the Bold & Brave.) H’Care WILL be … TOTALLY … re-invented in the next two decades. (And, hey, it is our largest “industry.”)

24. RevGov: Re-inventing Government.

WE NEED …

IDEAS!

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

BMcC: (1) Hierarchy vs. “Network organization.” (2)

NWO = “Doctrine as center of gravity”/source of motivation;

distributed support & decision-making;largely self-organizing; “outside the military sphere.”

“Our military structure today is essentially one

developed and designed by Napoleon.”

Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

“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


From: Weapon v. Weapon

To: Org structure v. Org structure

Ideas > Leadership

NO: “Good gov’t”

YES: EFFECTIVE Gov’t (in altered/ambiguous

times)

A Plea for “virtual

[RESPONSIVE] government”

Agile.

WALLS MUST FALL!

The W.O.G. (Work-of-

Government): Insta/ Targeted

WPTs (WOW (B.H.A.G.)

Project Teams (with

clout) )

Experiments rule!

Failures rule!

Talent matters!

New Heroes/Hall of Fame

IS/IT to the Max!

Streamlined

procurement (esp. IS/IT)

Case: Bill Owens … Lifting the Fog

of War

“The 1990s was a decade of multiple revolutions—political, economic, technological—that

changed so thoroughly the way we live that the past no longer seems a good guide to the future (in fact the past seems precisely the wrong

guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the military—in a way that could

reinvigorate American political, diplomatic and economic leadership in the world for decades to

come.” –Bill Owens, Lifting the Fog of War

“Our military is very good at doing things as they are supposed to be done, but it is not always good at changing the way things ought to be done. Highly

professional militaries can be very good at maintaining the institution’s traditions, mores and

cultures in the face of rapid and important change. … Equating professionalism with automatically defending the status quo can be disastrous.

This is the mindset that drives service loyalties toward narrow parochialism, and congeals organizations into brittle shells. We end up

ignoring opportunities that could actually offer higher military effectiveness.” –Bill Owens,

Lifting the Fog of War

“How dare you. If you don’t support us, our opponents will take

advantage and use this to cut the force.” –CNO staffer

[Flag officer] to Bill Owens, 6th Fleet Commander

“Mike [Boorda’s] self-avowed priority was to preserve and protect the size, budget and

structure of the U.S. Navy—his Navy—irrespective of any other consideration—

because he deeply believed that the Navy was the core of America’s military capability. My

view over the years had shifted toward the conviction that we in the Navy need to implement major changes in order to

become more joint—to work better and more closely with the other services.”

–Bill Owens, Lifting the Fog of War

“Many flaws remained—flaws not from poor performance, but from an ingrained command

hierarchy and an outmoded concept of war that had taken root during World War II and then during the cold war. Desert Storm was a joint

military operation in name rather than in fact. … The battlefield was divided among service components. …

The fiefdoms existed not only because of tradition, service rivalry and the egos of the commanders; they were also there because of technological limitations.

We did not have the communications capability to do it differently.” –Bill Owens, Lifting the Fog of War

RMA: (1) Battlespace awareness. (2) C4I.

(Command, control, communications, computers &

intelligence.) (3) Precision force use.

“[The RMA] means creating a synergy in new weapons, sensors and communications that is made

possible by the successful melding of the technological

applications with an information-age military organization.” –Bill Owens,

Lifting the Fog of War

“In the second half of the twentieth century a new society of individuals emerged—a breed of people

unlike any the world has ever seen. Educated, informed, traveled, they work with their brains, not

their bodies. They do not assume that their lives can be patterned after their parents’ or grandparents’.

Throughout human history, the problem of identity was settledv in one way—i am my mother’s daughter; I am

my father's son. But in a discontinuous and irreversible break with the past, today’s individuals

seek the experiences and insights that enable them to find the elusive pattern in the stone, the singular

pattern that is ‘me.’” —Shoshana Zuboff & James Maxmin, The Support Economy

“If you don’t like change, you’re going

to like irrelevance even less.” —General Eric

Shinseki, Chief of Staff, U. S. Army

Old: Heavy. Seek direct contact.

New: Stryker brigade. Stealth. Avoid direct contact—“choose

your moment.” “Depend heavily on information technology, and

enhanced intelligence, surveillance and reconnaissance capabilities.”

Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)

“Substituting information for armor is a disconcerting notion to a tank soldier. … Soldiers will learn that battle field awareness can be as comforting as armor.”


From “Tank” to Future Combat System (e.g., “virtual tank”)

Analogous to switch from “circuit breaker makers” to GE Industrial

Systems, or “guys in brown trucks” to “Let Brown do it.”


VIII. NEW BUSINESS.

NEW MARKETS.

25. Trends I:

Women Roar.

Women & the Marketspace.

?????????

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%

????

80%

Riding Lawnmowers

2/3rds working women/50+% working wives > 50%

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

1970-1998

Men’s median income: +0.6%Women’s median income: + 63%

Source: Martha Barletta, Marketing to Women

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Business Purchasing Power

Purchasing mgrs. & agents: 51%HR: >>50%

Admin officers: >50%


Women-owned Bus.

U.S. employees > F500 employees worldwide


2000-2010

55-64: 48%; 25-54: 2%65+/2001: M, 14.6M;

F, 20.5M


New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*[* No shit!]

91% women: ADVERTISERS DON’T

UNDERSTAND US. (58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

Men: Individual perspective. “Core unit is ‘me.’ ”

Pride in self-reliance.

Women: Group perspective. “Core unit is ‘we.’ ” Pride in team

accomplishment.


FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in

creating a relationship. Every place women go, they make

connections.”

“Men seem like loose cannons. Men always move faster through a store’s

aisles. Men spend less time looking. They usually don’t like asking where things are.

You’ll see a man move impatiently through a store to the section he wants,

pick something up, and then, almost abruptly he’s ready to buy. For a

man, ignoring the price tag is almost a sign of virility.”

Paco Underhill, Why We Buy* (*Buy this book!)

“Shopping: A Guy’s Nightmare or a Girl’s Dream Come True?”

“Buy it and be gone”vs.

“Hang out and enjoy the experience”

Source: The Charleston [WV] Gazette/06.22.2002

Antaun Hughes, Capital High School,

on M-F shopping habits: “Women enjoy going through the

actual process of everything, while guys like to get straight to the point.”

Source: The Charleston [WV] Gazette

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

Women's View of Male Salespeople

Technically knowledgeable; assertive; get to the point; pushy;

condescending; insensitive to women’s needs.

Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness

tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned

sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s

friends, hopes, dreams, romances, secret fears, what they are

thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes

to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,

but can never find things in fridges, cupboards or drawers.”


“Female hearing advantage contributes significantly to what is

called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.

They are excellent at imitating animal sounds.”


Senses

Vision: Men, focused; Women, peripheral.

Hearing: Women’s discomfort level I/2 men’s.

Smell: Women >> Men.Touch: Most sensitive man <

Least sensitive women.


Sensitivity to differences: Twice as many card stacks.

More “contextual,” “holistic.”

“People powered”: Age 3 days, baby girls 2X eye contact.


Barbara & Allan Peace, Why Men Don’t Listen & Women Can’t Read Maps: Women love to

talk. Men talk silently to themselves. Women think aloud. Women talk, men

feel nagged. Women multitask. Women are indirect. Men are direct. Women talk

emotively, men are literal. Men listen like statues. Boys like things, girls like

people. Boys compete, girls cooperate. Men hate to be wrong. Men hide

their emotions.

“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or

fixes a leaking tap.”Barbara & Allan Peace, Why Men Don’t Listen &

Women Can’t Read Maps

We Really … Don’t Get It!

Review of “Unfaithful”: “ … the latest entry in the category of

male directors’ clueless fantasies concerning what

women fantasize about in their nonexistent free time.”

Source: Julie Iovine, NYT (05.19.2002)

Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave

their mate. WOMEN: women controlled by the men in their lives,

who would rather be dead than oppressed.

Source: Judy Rosener, America’s Competitive Secret

[“The Hollywood scripts that men write tend to be direct and

linear, while women’s compositions have many

conflicts, many climaxes, and many endings.”

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

Changing the World]

“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

[“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female

friends. When days go by without that connection, I feel

like a radio playing in an empty room.”

Anna Quindlen]

Editorial/Men: Tables, rankings.*

Editorial/Women: Narratives that cohere.*

TP/Furniture: “Tech Specs” vs. “Soul.” **

*Redwood (UK)**High Point furniture mart (04.2002)

Initiate Purchase

Men: Study “facts & features.”

Women: Ask lots of people for input.


Storytelling: Men start with the headline.

Women start with the context.


Tomboy Tools. E.g.:

smaller, lighter in weight. Tupperware “party” model.

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

What If …

“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

The New New Jiffy Lube

“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the

female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation

required’ experience.”

New JL: “Control over her environment. Comfort in the service setting. Trust that her car

is being serviced properly. Respect for her intelligence and ability.”

EVEolution

Lowe’s …

Gets it. 1989:

13%/“lumber shop” … 2002: >50%

Yes!: “Crest Spinoff Targets Women”—cover story,

Ad Age/06.03.02

Crest Rejuvenating Effects. “Chicks in charge” team. $50M launch. Packaging.

Taste. Features.

“Mattel Sees Untapped Market for Blocks: Little Girls”—Headline,

WSJ/04.06.02

“Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello

—with interconnecting plastic squares, balls, triangles, squiggles,

flowers and sticks, in pastel colors and with rounded corners—will go beyond

Lego’s linear play patterns.”

“Women don’t buy

brands. They join them.”

EVEolution

Not!“Year of the

Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“Honey, are you sure you have

the kind of money it takes to

be looking at a car like this?”

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

“If we are single, they say we couldn’t catch a man. If we are

married, they say we are neglecting him. If we are divorced,

they say we couldn’t keep him. If we are widowed, they say we

killed him.”Kathleen Brown, on the joys of female political candidacy

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!”

Psssst! Wanna see my “porn” collection?

Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team

“In a lot of countries of the world, it would be very difficult for a woman to

be a good CEO. … I have a responsibility to do the best we can for

shareholders.” * **

*Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face

… to Margaret Thatcher or Carly Fiorina? (I would.)

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)

“Please … just

one couch or

chair where my feet hit the ground!” —Owner,

5 furniture stores, UK

Stupid!

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!”

Instructions: 1. Purchase ticket to symphony … 7:30 p.m. show. 2. Drink three large bottles of water

between 3 p.m. and 7 p.m. 3. X-dress. 4. Wait in queue at

Ladies at Intermission. 5. Realize what total wretches you are. 6. Seize a microphone and

apologize publicly to every woman in the hall.

“Customer is King”: 4,440

“Customer is Queen”: 29

Source: Steve Farber/Google search/04.2002

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)

Purchasing Patterns

Women: Harder to convince; more loyal once convinced.

Men: Snap decision; fickle.


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

JBQ: Stop Treating Women Investors Like Idiots!

“Why all this focus on women and our lack of investment guts? A far greater problem, it seems to

me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south

with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their

accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain.

Praise their own genius when stocks go up. Hide their mistakes from their wives.”

Source: Newsweek 01.08.01

Notes to the CEO

--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)

--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!


26. 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%)

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

“NOT ACTING THEIR AGE: As Baby Boomers

Zoom into Retirement, Will America Ever Be the

Same?”USN&WR Cover/06.01

“The Latest Golden –years Trend: Going Back to College” —Headline,

Newsweek/06.10.02

Member Growth: 1987 – 1997

18 – 34: 26%35 – 49: 63%

50+: 118%Source: IHRSA

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

“Advertisers pay more to reach the kid because they think that once someone hits

middle age he’s too set in his ways to be

susceptible to advertising. … In fact this notion of impressionable kids and hidebound geezers is little more

than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of

youth.”—James Surowiecki (The New Yorker/04.01.2002)

Read This!

Carol Morgan & Doran Levy,

Marketing to the Mindset of Boomers

and Their Elders

“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

“Households headed by someone 40 or older enjoy 91% ($9.7T) of

our population’s net worth. … The mature market is the dominant

market in the U.S. economy, making the majority of

expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to

the Mindset of Boomers and Their Elders

“The mature market cannot be dismissed as entrenched in its

brand loyalties.” —Carol Morgan &

Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Focused on assessing the marketplace based on lifetime

value (LTV), marketers may dismiss the mature market as

headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol

Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“While the average American age 12 or older watched at least five

movies per year in a theater, those 40 and older were the most

frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-

olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But

who in the fashion industry is currently pursuing this market?” —Carol

Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

Stupid!

“ ‘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”

The Royal Tenenbaums

“The New Pillow Talk: Specialty Pillows Are Big Sellers as Achy Boomers

Seek Sleep”—WSJ (03.22.2002)

Nice Job Title, Frito-Lay!

Rebeca Johnson, VP—Ethnic and Urban

Marketing

27. 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


Yes: “Target


Women’s [Aging,Green] Market: Why Tough

EncompassingAttitude

CULTURAL!

“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.


Yes: “Target


28. Trends IV: Think Global!

THE EIGHT “RULES”

Rule #1

There’s no such thing as “too small to

be global.”[GET A LIFE.]

Rule #2

If “it” is [truly] good … then it’s good

enough for … THE WORLD.

Rule # 3

When?

Now.

Rule #4

Hang out … vigorously!

Rule #5

Seek Talent!Send Talent!

Message(s) ABB, Shell

ELITE Global CadreGenuinely Global BOARD

Rule #6

Glom onto a [modest-sized] partner … who

loves/ “gets” you!

Rule #7

Tailor!! [But don’t give

away the store.]

Rule #8

Phil Crosby notwithstanding,

you’ll not [likely] “get it right the first time”!

IX. NEW BUSINESS. NEW LEADERSHIP.

29. The Passion

Imperative: The

Leadership50

The Basic Premise.

1. Leadership Is a …

Mutual Discovery Process.

“I don’t know.”

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!

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!)

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)

5. All Organizations

Need the Golden Leadership

Triangle.

The Golden Leadership Triangle: (1) Creator-

Visionary … (2) Talent Fanatic-Mentor-V.C. …

(3) Inspired Profit Mechanic.

6. Leadership Mantra

#1: IT ALL DEPENDS!

Renaissance Men are … a snare, a

myth, a delusion!

7. 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.

8. Leaders …

SHOW UP!

P.S. …

Mark McCormack: 5,000 miles for a 5

min. meeting!

9. Leaders … LOVE the

MESS!

“I’m not comfortable unless

I’m uncomfortable.”—Jay Chiat

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

10. 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!)

11. 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

“If it works, it’s

obsolete.”

—Marshall McLuhan

12. BUT … Leaders

Know When to Wait.

Tex Schramm: The

“too hard” box!

13. 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)

14. Leaders …

DELIVER!

“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

15. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

The “Gus Imperative”!

16. Leaders

FOCUS!

“To Don’t ” List

17. 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!

18. 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.

19. Leaders Trust in

TRUST!

Credibility!

If It Ain’t Broke … Break It.

20. Leaders …FORGET!/

Leaders … DESTROY!

Cortez!

Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.

“WCW Monday Nitro was our top rated show by more than double anything else [and the top rated show on basic cable],

and we dumped it! Can you name another network that dropped its top-rated show? I

don’t know if consumers noticed, but it said everything to our staff.”—Scot Safon,

on the successful reinvention of TNT to embody its new vision, “TNT: We

know drama.”

21. 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)

22. Leaders …

HONOR THE USURPERS.

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

Leaders know … WE BECOME WHO

WE HANG WITH!

23. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

“Fail faster. Succeed sooner.”

David Kelley/IDEO

“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)

24. Leaders Make …

BIG MISTAKES!

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

Create.

25. Leaders Know that

THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW

MARKETS.

No one ever made it into the Business Hall of Fame on a record of

“line extensions.”

“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

“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

26. 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

26A. Leaders … Make Their Mark /

Leaders … Do Stuff That Matters

Ideas > Leadership

“Today the problem is not how to produce more to sell more.

The fundamental question is that of the product’s right to exist. And it is the designer’s right and duty to question the

legitimacy of the product.”

Philippe Starck

“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

NO: “Good gov’t”

YES: EFFECTIVE Gov’t (in altered/ambiguous

times)

27. Leaders Push Their

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

28. Leaders

LOVE the New Technology!

100 square feet

29. 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.

30. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

31. Leaders “Manage” Their

EVP/Internal Brand Promise.

MantraM3

Talent = Brand

32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.

“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

Passion.

33. 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

“A winning attitude takes a lot of hard,

honest work. It begins with an assumption that we do have a choice, we can

make a difference among others and within

ourselves.”—James Cramer, The Greenway

Group & former CEO of the AIA

34. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

BZ: “I am a … Dispenser of Enthusiasm!”

35. 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.]

“The references were there; the

portfolio was dazzling. But there was no fire, no foot halfway over the starting line eager to sprint down the track to success.”—James Cramer, The Greenway

Group & former CEO of the AIA (on the rejection of a “famous firm”)

The “Job” of Leading.

36. 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.)

37. 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!

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

40. Leaders Say

“Thank You.”

“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]

41. 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

The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-

to-moment actions.

44. Leaders …

Have a GREAT STORY!

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley Brown

Introspection.

45. Leaders …

Enjoy Leading.

“Warren, I know you want to ‘be’

president. But do you want to ‘do’

president?”

“[Bertelsman’s Reinhard] Mohn wasn’t a creative type. What got him juiced was the

art of running an organization and motivating the people who work there.”

—Fortune/05.27.2002

46. 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.)

47. 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.)

48. Leaders … Take Breaks.

Zombie!Zombie!Zombie!Zombie!

The End Game.

49. Leaders ???

:

“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”

50. Leaders Know

WHEN TO LEAVE!

XI. NEW BUSINESS. NEW

RULES.

30. Tom’s

60TIBs**TIB = This I Believe

1. TECHNICOLOR RULES! (Passion Moves Mountains!)2. Audacity Matters!3. Revolution Now!4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!)

6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you can’t take Silicon Valley out of the boy!)7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AIN’T SEEN NOTHIN’ YET!)9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT … OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)

11. “Permanence” Is a Snare & a Delusion. (Forget “Built to Last.” It’s Yesterday’s Idea.)12. Kaizen” (Continuous Improvement) Is … Dangerous.13. DESTRUCTION RULES!14. Forget It! (“Learning” = Easy. “Forgetting” = Nigh on Impossible.) 15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.)

16. Boring Begets Boring. (Cool Begets Cool.)17. Think “Portfolio.” (We’re All V.C.s.)18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism of What They’re Up To.)19. Action … ALWAYS … Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH … INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns!

21. Haste Makes Waste. (SO GO WASTE!)22. Screwups are … the … Mark of Excellence. (“Do It Right the First Time” Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!)24. TALENT TIME! (He/She Who Has the Best “Roster” Rules!)25. Re-do Education. Totally. (FOSTER CREATIVITY … NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)

26. Diversity’s Hour Is Now!27. SHE … Is the Best Leader!28. MARKETING MANTRA: Embrace the “BIG THREE” Demographics. (1) SHE … is the Customer. (For everything.) (2) Rapidly Aging Boomers Have … ALL THE MONEY. (3) Green … Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY … Gets It.) (Mere “Programs” Will Not Suffice.)29. Re-boot Healthcare. (UNDERSTATEMENT.)30. WHAT ARE WE SELLING? “Experiences” & “Solutions” > “Quality” & “Satisfaction.” (The Traditional Value-added Equation Is Being Set on Its Ear.)

31. DESIGN = New Seat of the Soul. 32. Branding Is for … EVERYONE. He Who Has the … BEST STORY … Takes Home the Marbles.33. DRAMATIC DIFFERENCE = Only Difference.34. WORDS/Language Matters … a Lot. (E.g.: Three Hearty Cheers for “Wow”!)35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: “Are You Proud of It?”)

36. eALL. (IS/IT: Half-way = No Way.)37. DREAM … Big! DREAM … Enormous. DREAM … Gargantuan. (These Are XXXL Times.)38. THINK MIKE! (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”)39. There Is Only … ONE BIG ISSUE. Cross- functional Communication.40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF “UN-DUMBING.”)

41. Beautiful Systems Are … BEAUTIFUL.42. The … WHITE-COLLAR REVOLUTION … Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT … OR EXTINCT!44. “Powerlessness” Is a State of Mind! Think: King. Gandhi. DeGaulle.45. Pursue Adventure … in Every Task.

46. EXCELLENCE … Is a State of Mind. (Excellence Takes a Minute.) (No Bull.)47. SHOW UP! (If You Care, You’re There.)48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your “TO DON’T” List.)49. LIFE IS SALES. (The Rest Is Details.)50. Boss Mantra #1: “I DON’T KNOW.” (“I Don’t Know” = Permission to Explore.)

51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (“Manager” = Hurdle Removal Professional.)52. Epitaph from Hell: “He Woulda Done Some Truly Cool Stuff … But His Boss Wouldn’t Let Him.”53. Change Takes However Long You Think It Takes. (Eschew … “Incrementalism.”)54. Respect! (Rule 1: Don’t Belittle!)55. “Thank You” Trumps All!

56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.)57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.)58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.)59. DISPENSE ENTHUSIASM!60. FUN …Is Not a 4-Letter Word. So, too … JOY. (And … GRACE.)

Have you changed

civilization today?Source: HP banner ad

Thank You!

tom peters’ how new business works: rules for re-invention 10.10.2002

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