TOM PETERS LESSONS IN LEADERSHIP2000 1 FEBRUARY ALBUQUERQUE

1
TOM PETERS LESSONS IN LEADERSHIP20001 FEBRUARY
ALBUQUERQUE
2
ALL SLIDES ARE AVAILABLE ATtompeters.com
3
Seminar Y2K Brand EverythingDistinct or
Extinct
4
Microsoft R.O.W.Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhauser Union Pacific
Kodak Sears Marriott Safeway
KelloggSource Business Week data through 5-99
5
Microsoft R.O.W. (II)Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhauser Union Pacific
Kodak Sears Marriott Safeway Kellogg
McDonalds Bank One General Mills American
Airlines United Airlines Delta Air Lines
US Airways Quaker OatsSource Yastrow
Marketing (through 11-23-99)
6
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
7
Just Say No I dont intend to be known as
the King of the Tinkerers. CEO, large
financial services company (New York, 5-99)
8
Forces at WorkThe Destruction Imperative!
9
64/24
10
Forget LearnThe problem is never
how to get new, innovative thoughts into your
mind, but how to get old ones out.
Dee Hock
11
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
12
Q What do you do when you are a big, dopey
company and out of ideas?
13
A You merge with another big, dopey company
that doesnt have any ideas either.
14
R An incredibly big, incredibly dopey company
going nowhere.
15
When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
co-chairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
16
I feel betrayed. I bought stock in a company
that was going to change the world. I didnt buy
a big, fat, stupid conglomerate. And now Ive got
one.Alan Towers, consultant, quoted in
Business Week BW The irony is that AOL Time
Warner is a vertically integrated conglomerate.
Not exactly the sort of nimble competitor that
will thrive in cyberspace.
17
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

18
We chose not to do a discounted cash flow
analysis of their future earnings. We wanted
their talent and we wanted their intellectual
property. Art Reidel, CEO, Pharsight
19
Our ideal acquisition is a small startup that
has a great technology product on the drawing
board that is going to come out in six to twelve
months. We buy the engineers and the next
generation product. - John Chambers,
Cisco Systems
20
Dept. Head Sports GMDept. Head V.C.
21
Silicon Valley Success SecretsPursuit of
risk 4 of 20 in V.C. portfolio go bust 6 lose
money 6 do okay 3 do well 1 hits the
jackpotSource The Economist
22
R DIntels venture fund 275 investments,
3.5BSource Fast Company (12-99)
23
EcoNets/Internet ZaibatsusThe model is about
partial acquisitions and ownerships that then
form a whole. Each part has to have value
separately, be able to raise capital separately,
and motivate employees separately. Corporations
of the past never had that.Flip Filipowski,
divine interVentures (Red Herring)
24
The brick and mortars will die, no matter what.
So you have to take your best employees and
best businesses and spin them off and just own 40
percent of everything thats left. Do that and
you survive.Flip Filipowski, divine
interVentures (Red Herring)
25
DYB.com
26
DestroyYourBusiness.com (GE)
27
It used to be that the big ate the small. Now
the fast eat the slow.Geoff Yang, IVP/
(Institutional Venture Partners)
28
E.g. Craig Venter/Celera Genomics
29
The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
30
But what if former head of strategic planner 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
Nordstrom and Jonas Ridderstrale, Funky Business
31
ALL OF THESE CONVERSATIONS TODAY ABOUT THE
WEB WILL APPEAR SO BLOODY DAMN SILLY AND
PEDESTRIAN TEN FIVE? THREE? YEARS FROM
NOW. Tom Peters (11-99) P.S. Read Ray
Kurzweils The Age of Spiritual Machines When
Computers Exceed Human Intelligence
32
BW human brain has only a short time left as
the smartest thing on earth/ subjugate humanity
by 2050 Health Forum Journal In one
generation or less, every element of health care,
every assumption, will be changed or gone./ We
are not aging gracefully.Dr. George Poste,
SKB 500 molecular targets in 95 to 70,000 in
99/ 35 compounds per year to2M
33
Wired Feb 2000Cyborg 1.0 Kevin Warwick
Outlines His Plan to Become One with His Computer
34
Medicine looks likely to change more in the next
20 years than it has in the last 200.British
Medical Journal (11-11-99)
35
TTTTTurbulent Times!Top 3 Americans 48
poorest nationsSource Newsweek 12-99
36
Brand InsidePSF 1Brand Org!
37
108 X 5vs. 8 X 1 540 vs. 8
38
ERP, ECM, Web, Etc.ITS THE GIANT SUCKING SOUND
OF SLACK BEING EXTRACTED FROM THE GLOBAL
ECONOMY!
39
The coefficient of friction associated with the
grunge of business is amazing!Michael Schrage
40
Cemex and FDX!
41
CCC Information Services!
42
Assetless CompanyJ.B.
43
RR on Sara LeeThe most profitable businesses
in the future will act as knowledge brokers,
linking insights into whats available with
insights into the customers individual needs and
preferences.
44
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
45
The -!! in the middleJim Clark on
Healtheon twixt docs, patients and
providers 250B in waste source Michael
Lewis, The New New Thing
46
Dont own nothin if you can help it. If you
can, rent your shoes. F.G.
47
RD Outsourcing/ Big Pharma31 (70 now 5 in
5 years)12 (5 now 20 in 5 years)Source
IN VIVO
48
PSF 1.0Professional Service Firm Conversion Kit
/ Release 1.0
49
White Collar Revolution(Finally!!)90 in 10
years!PSFs .. All!Brand Yous All!WOW
Projects All!
50
PSF 1.0 Department Head to Managing
Partner, HR IS, etc. Inc.
51
CredoWORK WORTH PAYING FOR
52
support function / cost center /
bureaucratic dragor Rock Stars of the
Age of Talent
53
Why are there no books on how to create a Cool,
Rocking, WOW-producing Finance Department?
54
Real PSF

• Think Inc. (Mindset Step No.1!)
• Clients rule!
• Engage Clients in deep dialog/ Join us in an
  Adventure/ Fire duds!
• Work WOW Projects (100)
• Practice serial monogamy
• Think impact!/ Embrace politics!
• Master the economics!

55
Real PSF

• WE HELP PEOPLE!
• Co-habit with the Client!
• Create a Culture of Urgency!
• Love thy Support Staff!
• You need a Methodology!
• Obsess on RD!
• BECOME A CONNOISSEUR OF TALENT!

56
Real PSF WE OWN THIS PLACE!THIS IS COOL
STUFF!WE ARE THE WORLD!Why no books on
Cool Finance Depts.?
57
The 7Ps of PSF 1.0Projects!Passion!Provocati
on!Partnership!Politics!Professionalism!Perfor
mance!
58
C.I.O. to C.E.F.R.N.S.
59
Chief Evangelist For Really Neat Stuff
60
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
61
Brand InsidePSF 2Brand Work!
62
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
63
But Does It Matter????On time, on budget who
cares? anon. seminar participant (4/99)
64
You really got to me. So many of our information
technology projects take on a life of their own,
and I know theyll never end up as more than
mediocre successes. CEO, F100 financial
services company (10-98)
65
WOW Project AnatomyI. Create!II. Sell!III.
Implement! IV. Exit!
66
I. Create!Reframe! THERE ARE NO SMALL
PROJECTS! Observe Record!!Head for the
trenches!You gotta love it!Measure WOW!,
Beauty, Raving Fans, Impact!Build a no-baloney
Business PlanCreate community. Now!Obsess on
the End User. Now!
67
Reframers RulesRule 1 Never accept an
assignment as given!Rule 2 Youre never so
powerful as when you are powerless!Rule 3
Every small project contains the entire
enterprise DNA!
68
Measures

• WOW!
• Beauty!
• Raving Fans!
• Impact!

69
E.g. WOW Scale1. Dull as dishwater.5.
Gets the job done.7. Good work!.10. A
serious Braggable!
70
Kaiser 4.15.29
71
Liberty Ship2 years240 days9 hours4 days,
15 hours, 29 minutes
72
Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
73
WOW Project Acid TestCan you explain it -
with zest - to your 14-year-old?
74
The Alumni Meeting Test!
75
II. Sell!Master The Pitch!Build Buzz.
Consciously.Network maniacally!Preach to the
choir!Forget your enemies. Surround and
marginalize!Money kills!SELL, SELL, SELL!
76
III. Implement!- Live, eat, sleep Quick
Prototype-Play! - Keep on recruiting! (Sell!)-
Obsess on the End User Community! (Sell!)-
Become a Milestone Maniac! / a Timeline Tyrant! /
a List Freak! / find Ms. Last 2!- Appoint a
Marketing Director!- Keep the WOW front and
center!
77
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

78
You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.Micha
el Schrage, Serious Play
79
I view models and prototypes as the battleground
for thoughts and behaviors.Michael Schrage
80
Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
81
Prototypers LawsDefine a small, practical test
of something on a page or less of text.
Now.Gather found materials on the very
cheap.Find a/one partner-customer wholl
provide a test site.Set a very tight deadline of
about 5 days for the next concrete step.Conduct
the test! Debrief A.S.A.P.Set the next test
date. Now. No more than 5 days hence.
82

• Secret No. 1 Go horizontal Find a (one!) line
  ally in the Boonies
• Secret No. 2 Powerless allies are Cool!
• Secret No. 3 Passion Rules!
• Secret No. 4 Become a Prototyping Maniac!
• Secret No. 5 Embrace Politics / Community
  Organizing!

83
K2K
84
IV. Exit!Sell out! / Embrace The
Suits!Recruit a passionate Ms./Mr.
Follow-up!Seed your freaks into the
mainstream!Celebrate!Exit!
85
SOOOO HOW MANY OF YOUR COLLEAGUES ARE BACK
HOME AT WORK ON NO-BALONEY WOW PROJECTS!
WOW Will be remembered fondly/ bragged about 5
years from now
86
Epitaph from Hell Joe T. Jones 1942 - 2000
HE WOULDA DONE SOME REALLY COOL STUFF BUT
HIS BOSS WOULDNT LET HIM!
87
T.T.D. Now!

• List all your projects.
• Carefully describe a WOW Outcome for you and
  the Client.
• Score (!) all projects on WOW, Beauty, Impact,
  Raving Fan-hood.
• Pick one project with a high combined score.
• Draft a one-page New Description that emphasizes
  WOW, Beauty, etc.
• Circulate and edit for three days.
• Reduce to 5 bullet points.

88
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
89
Characteristics of the Also Rans

• minimize risk
• respect the chain of command
• support the boss
• make budget

Source Fortune on most admired global
corporations
90
We are not trying to WOW you up.We think you
are/have WOW.We are trying to give you
permission to be WOW.
91
Seminar Y2KMESSAGE THE WORK MATTERS!
92
1) Turn ignition key.2) Shift into drive.3)
Press foot firmly on the throat of
mediocrity.Source Mercedes ad
93
Brand InsidePSF 3Brand You!
94
The fundamental unit of the new economy is not
the corporation, but the individual. Tasks arent
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.
Thomas Malone and Robert Laubacher

95
DISTINCT OR EXTINCT!If there is nothing
very special about your work, no matter how hard
you apply yourself, you wont get noticed and
that increasingly means you wont get paid much,
either. Michael Goldhaber, Wired
96
If one quarter cant make the journey, thats
the way it has to be.Carly Fiorina
(1-00/Forbes)
97
Personal Brand Equity Eval

• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• I am known for
• Additions to my Rolodex include
• My resume is discernibly different from last
  years at this time

98
Icon Woman

• Totally turned on by her work!
• It matters / a WOW Project!
• It is COOL!
• It is BEAUTIFUL!
• She is in your face!
• She is an adventurer!
• She is CEO of her own life!

99
Icon Woman

• She is at least a little funky!
• Her curiosity is insatiable!
• She thinks screwups are as normal as
  breathing!
• She hangs out with some seriously rad Dudes!
• She is not God. She is not Bionic Woman. She is
  determined to make a damned difference!

100
Well-behaved women rarely make history.
Anita Borg,Institute for
Women and Technology
101
Icon Woman Meets the Web

• submits resume on the Web
• recruited on the Web
• hired on the Web
• trained on the Web
• creates and conducts projects with virtual teams
  on the Web
• manages project and client follow-up on the Web
• manages career/reputation-building on the Web

102
The Brand Called URL/Nathan Shedroff, Vivid
Studios24 X 7 storefront devoted exclusively
to The Brand Called You. NSPersonal publicity
represents the next big paradigm shift on the
Web. Jerry Yang, Yahoo!
103
R.D.A.Rate 15?, 25?Formal Investment
Strategy/R.I.P.
104
R.I.P.IS IT ... WOW!?
105
There is an internal and an external pressure to
keep doing the same thing. People liked it. You
got rewarded. So do it again! The same only
different. So it becomes something you have to
fight.Michael Crichton
106
R.I.P.10 Major job change new area of
concentration major offsite educational
investment extensive sabbatical oddball
learning experience of 2 months exceptional
community project presidency of fundraising
drive, run for school board.
107
R.I.P.5 ... Extensive course work in oddball
area of passionate interest major off-the-job
activity community involvement, learn to play
the cello, study Chinese.1 Company training,
as directed.
108
R.I.P./Practical Step No. 1Go some place
totally different for vacation!
109
R.I.P.Use by yourself.Use with your
mates.Use quantitatively? as a measure of
departmental/ P.S.F. renewal.Use in formal eval
process.
110
Training Y2KAnytime, anywhere!Whatever!Con
cocted by the employee/ Training Account
111
Assignment!Construct a 1/8-page or 1/4-page ad
for Brand You for the Yellow Pages
112
How About It?Replace your current evaluation
process with Yellow Pages ads.
113
Bill Parcells World/ Brand You World!BLAME
NOBODY!EXPECT NOTHING!DO SOMETHING!Source NY
Post
114
Its Attitude, Baby!9-10, 4.2310-1, 1.28
115
Seminar Y2KMessage Distinct or Extinct!
116
Everything can be taken from man but one thing
the last of human freedoms - to choose ones own
attitude in any set of circumstances, to choose
ones own way.Victor Frankl, Auschwitz survivor
117
2 folks in Hartford
118
MY ONLY GOAL - AS YOUR BOSS - IS TO HELP YOU
DECIDE WHAT TO MAKE OF YOUR LIFE!
119
There comes a time in everyones life when they
realize they work for a dead guy.FreeAgent.com
ad
120
Brand InsidePSF 4Brand Talent!
121
Issue Y2KThe Great War for Talent!
122
Develop people quickly and effectively
5Truly know who our strongest and weakest
performers are 17Source War for Talent
research/ McKinsey Co.
123
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
124
Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
125
A Connoisseur of Talent

• Spends time on Talent!
• Becomes a student of Talent!
• Puts Talent on the agenda!
• Practices D.I.Y.
• Uses Plain English! (If you want sunny ask
  for sunny!)
• Creates Workspaces that foster energy,
  entrepreneurship and creativity!
• Recruits from oddball places! / Recruits
  Oddballs!

126
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
127
Axiom Never hire anyone without an aberration
in their background. (Find the One Ton Cookie
Man!)
128
A Connoisseur of Talent

• Recruits M.I. (Gardner Logical-mathematical,
  linguistic, artistic, musical, bodily-kinesthetic,
  intrapersonal-self, intrapersonal-others)
• Recruits arts!
• Becomes de facto C.D.O. (Chief Diversity Officer)
• Turns the pay scale upside down! / Pays Talent!
• Rewards Promotes all on Talent Development
  Skills!
• Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

129
Every school I visited was participating in the
systematic suppression of creative genius.
Gordon MacKenzie
130
Where do good new ideas come from? ...Thats
simple! From differences. Creativity comes from
unlikely juxtapositions. The best way to maximize
differences is to mix ages, cultures and
disciplines.Nicholas Negroponte
131
Attributes of Those Who Made the 10th Grade
History Book

• Committed!
• Determined to make a difference!
• Focused!
• Passionate!
• Irrational about their lifes project!
• Ahead of their time/ Paradigm busters!
• Impatient/ Action Obsessed!

132
Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar!
• Rebels!
• Irreverent!
• Masters of improv / Thrive on chaos/ Exploit
  chaos!

133
Attributes of Those Who Made the 10th Grade
History Book

• Forgiveness Permission
• Bone honest!
• Flawed as the dickens!
• In touch with their followers aspirations
• Damn good at what they do!

134
Conformity is the enemy of freedom and the
jailer of growth.J.F.K.
135
Just Say No to Grout! Participant Dont
you need grout between the tiles?TP No!
med staff, NFL Special Teams,waiters, PFCs,
cymbals player, bit parts, waiters
136
TPs Ideal JobHead of Housekeeping!
137
The boundaries for acceptable weirdness have
dramatically expanded.Michael Schrage
138
Yes! Director of Bringing in the Really Cool
People
139
All You Need to Know?Chief Evangelist For
Really Neat StuffDirector Of Bringing In The
Really Cool People
140
Talent War Y2K!

• All out!/ Time consuming!
• Never ending!/ Unwinnable!
• Includes everybody!/ Everybodys game! (Were
  all in sales.)
• Expensive!
• Cool!/ WOW!/ Fun!/ Creative!
• Strategic!/ Core competence!

141
Talent Brand
142
Brand OutsideBrand Inside
143
Emotional values are replacing physical
attributes as the fundamental market influence.
Only with a strong spirit at its foundation
can a company achieve strong market
position.Jesper Kunde, Corporate Religion
144
PSF Y2K Final Exam

• Are you working with awesome/freaky peers?
• Are you working with cool/pioneering Clients?
• Are you a player?
• Are you pushing the envelope and putting yourself
  at risk on every project?
• Are you doing WOW work?
• Are you having fun?
• Are a lotta theys mad at you?
• Will you look back on all this as the time of
  your life?

145
Brand OutsideContextNo Commodities!
146
In the Beginning The audit has become a
commodity.Big 5 audit partner to TP
147
Quality Not Enough!Quality as defined by few
defects is becoming the price of entry for
automotive marketers rather than a competitive
advantage.J.D. Power
148
Quality Not Enough!While everything may be
better, it is also increasingly the same.Paul
Goldberger on retail, The Sameness of Things,
The New York Times
149
Whats Special?Customers will try low cost
providers because the Majors have not given them
any clear reason not to.Leading Insurance
Industry Analyst (10-98)
150
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina, HP
151
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, similar warranties and similar
quality.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
152
The 10X/10X Phenomenon10 Times Better/10
Times Less Different
153
TPs Campaign Y2KJust say shout No! to the
inevitable commoditization of anything.
154
When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
155
Pretzel Crumb-less-ness Plus The Ritz Carlton
Experience enlivens the senses, instills
well-being and fulfills even the unexpressed
wishes and needs of the guest.from the Ritz
Carlton Credo
156
We want to create waves of lust for our
product.Andy Grove (on the Pentium Processor)
157
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
158
Lust HierarchySatisfy Conform to Requirements
Exceed Expectations Delight! WOW! Lust!
ONLY ONES WHO DO WHAT WE DO!
159
New Customer Offering at Virgin Must Be of
the best quality innovative provide good
value for money challenge existing
alternatives add a sense of fun or cheekiness
Source Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
160
customer satisfaction to customer
successSource GE Power Systems
161
Were getting better at Six Sigma every day.
But we really need to think about the customers
profitability. Are customers bottom lines really
benefiting from what we provide them?Bob
Nardelli, GE Power Systems
162
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
163
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
164
Brand OutsideStrategy 1Lead the Customer!
165
The customer is a rear view mirror, not a guide
to the future.George Colony, Forrester
ResearchIf you worship at the throne of the
voice of the customer, youll get only
incremental advances.Joseph Morone, President,
Bentley College
166
Early Customer RejectionPost-Its 12
years!Chrysler MinivansVCRsFax
machinesFedExCNNHeart-assist
pumpsEtc.Source Fortune
167
Good Bad/ 1 of 30,000We are crazy. We
should do something when people say it is
crazy. If people say something is good, it
means someone else is already doing it.Hajime
Mitarai, Canon
168
Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown.Kevin Kelly,
New Rules for the New Economy
169
The numbers declining market share dont lie.
Detroits single biggest failure has been its
unwillingness to innovate. It is less risky to
simply develop a new version of an existing
product than to pioneer a new category.Alex
Taylor (Fortune)
170
AgainBRAND OUT BRAND INHIRE DULL GET
DULL!
171
Benchmarking, Perils of The best swordsman in
the world doesnt 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 doesnt
do the thing he ought to do, and so the expert
isnt 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
172
Lead customers!K2K redux!
173
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
174
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
175
Brand OutsideStrategy 2Master E-Commerce!
176
30,000,000. ???
177
Dells Web sales daily
178
350,000 ?????
179
New items going on sale at eBay daily (12-99)
180
2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
181
Tomorrow Today Cisco!7B of 10BSave 500M
(service and tech support)C.Sat e C.Sat
HCustomer Engineer Chat Rooms (1B?)
182
And Larry?
183
Business 2.0 20 Industries About To Be
Fossilized by The Net (3-99)Travel Agents (2B
now, 30B in 2003) Apparel (1-21) Autos
(4-213) Home Electronics (1-21) Paper and
Office Supplies (1-65) Food ((7-170) Computing (20-400) Newspapers (5B of
19B classifieds)
184
Cherry PickingVertical MarketsPlasticsnet.com
370B sellers pay 5K to 8K for storefront
5 to 10 cut Hook community services
(database, catalogs, forums, industry job bank,
etc.)
185
W.W. Grainger2X phone/fax220B MRO
market (per Business 2.0/02-00)
186
B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 1-26-00)
T
187
Consumer Health Care Sovereignty!
E.g.Empowered consumers influenced by medical
advertising and educated by information on the
Internet are driving demand for new vision
correction options. Start Up (10-99) Take
your White Coat and
188
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
189
Autoweb. Take the Wheel. Advertising Age
190
Shop in your UnderwearSource SMd logo for
www.ae.comae American Eagle Outfitters
191
Psych 101 Strongest Force on Earth?My need to
be in perceived control of my universe!
192
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
193
IT enables total transparency. People with
access to relevant information are beginning to
challenge any type of authority. The stupid,
loyal and humble customer, patient, employee or
citizen is dead.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
194
Patricia Seybolds BasicsThe E-Customer Bill
of RightsDont waste my time!Remember who I
am!Make it easy for me to order and procure
service!Customize your products and services for
me!Source customers.com
195
Welcome back, Tommy!
196
In the network economy, the Website becomes the
companys primary interface to the customer. The
user interface becomes the marketing materials,
store front, store interior, sales staff and
post-sales support all rolled into one.Jakob
Nielsen, Designing Web Usability
197
Read This. No INGEST This!Jakob
NielsenDesigning Web Usability The Practice of
Simplicitywww.useit.com
198
Most companies would do more business on the
Internet if they fired their entire marketing
department and replaced it with people who could
produce interactive content that actually made it
easier for users to buy.Jakob Nielsen, Nielsen
Norman Group
199
Red Herring (01/00)75 of online shoppers dont
complete their purchase!
200
Nielsen/Designing Web UsabilityAll Web projects
are customer-interface projects! Simplicity
rules! Make it easy for customers to perform
useful tasks!Less cool, more useful!Speed
rules!Link madly!
201
Nielsen/ ContinuedMust work on a small
screen!Must work w/o graphics
loading!Scannability rules! Users pick out
key words.Navigation page No
scrolling!Remember 25 to 50 successful use
202
When you click on Yahoo! today you get the same
simple, nearly graphics-free home page you would
have seen had you clicked three years
ago.Fortune, on Zod Nazem, Yahoo! CTO
203
Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

204
Web Strategy GE Power SystemsLaunch and
Learn/4 sites in 30 days
205
Goodhome.com / 10 weeks!
206
Change Or Die!Most of the brick and mortars
look at the Internet as an add-on business
until they get a major scare. Then they either
change or die. You have to put all your heart
and soul in that direction, the way Charles
Schwab and Dell did.Flip Filipowski, divine
interVentures (Red Herring)
207
I have this chance for changing the
world.Marco Boerries, Sun, re StarOffice
(Business 2.0, 2-00)
208
There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
209
MagsAdvertising AgeBusiness 2.0Fast
CompanyRed HerringScientific American Wired
210
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
211
Brand OutsideStrategy 3Women Rule!
212
?????????Home Furnishings 94Vacations
92Houses 91Bank Account 89Health Care
75Etc.
213
48 working wives 5080 checks61 bills53
stock (mutual fund boom)43 500K95
financial decisions/ 29 single handed
214
Women 49 of Web users 6 of 10 new users 83
of wired women are primary decision makers for
family healthcare, finances, education.Source
Business Week (11-99)
215
3.3T 1.5T 4.8T Larger than Japan!
216
Most Under-reported story!9M/20M/4T
Germany 400K in 72 132 since
92source NFWBO, Cognetics
217
New golfers 37Basketball 13.5M1 in 27
(70) 1 in 3 (96)
218
1874?
219
1874 Jock Strap1977 Jogbra1977 ...
25K1996 42M
220
Yikes? Ho-hum?1970 12000 50
221
OPPORTUNITY NO. 1! No shit!
222
Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
223
FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons. ...He simply
wants the transaction to take place. Shes
interested in creating a relationship. Every
place women go, they make connections.
224
Men seem like loose cannons. Men always move
faster through a stores aisles. Men spend less
time looking. They usually dont like asking
where things are. Youll see a man move
impatiently through a store to the section he
wants, pick something up, and then, almost
abruptly hes ready to buy. For a man, ignoring
the price tag is almost a sign of
virility.Paco Underhill, Why We Buy Buy
this book!
225
Women and Financial AdvisorsWomen want a
plan, to be listened to, to be taken seriously,
to read about it, to think about it.Women do
not want an in-your-face sales pitchSource
Kathleen Boyle, Wheat Boyle Butcher Singer
226
Women and HealthcareWomen are more
dissatisfied, frustrated by the way they are
treated and spoken down to by physicians, seek
more information, are more pressed for time and
make 75 of health care decisions and control
2/3 of health care and constitute 2/3 of
health care employees.Source Patricia Braus,
Marketing Healthcare to Women
227
Marketing to Women Help Them Save Time!80
work86 cook58 run errands with kids38
take child to school21 go to the gym21
take outside classes
228
How Many Gigs You Got, Man?Hard to believe
Different criteria Every research study
weve done indicates that women really care about
the relationship with their vendor. Robin
Sternberg/ IBM
229
The Net hasnt lived up to its hype. Its a
distant, cold, alien, threatening world called
cyberspace. The challenge is to make the Net
into something intimate, warm, friendly, useful,
personal.Carly Fiorina, CEO, HP _at_ Comdex 99
230
Not!!Year of the Woman
231
Enterprise Reinvention!RecruitingHiring/Rewardi
ng/ PromotingStructure ProcessesMeasurementStr
ategyCulture VisionLeadershipTHE BRAND ITSELF!
232
What kind of car does Mommy want?
233
I didnt know company were giving company cars
to secretaries.Source UK financial services
CEO, 12/99
234
Not a Morality Play!It is critical that we all
understand that IBM is not marketing to women
entrepreneurs because it is the thing to do, or
even the right thing to do. We are marketing to
women entrepreneurs because it is a huge
opportunity.Cherie Piebes
235
Top 25 Cos. For Executive Women/Working
Woman/1Y2KAvon Chas. Schwab Scholastic
Fannie Mae Dayton Hudson Knight Ridder
Pitney Bowes Advantica Gap Nordstrom
Sallie Mae Gannett Golden West Aetna
Mattel IBM SBC Comm. Merck State Street
Corp. Sara Lee Prudential Baxter PG
WellPoint Xerox
236
Speaking of Enormous Missed Huge
Opportunities ...
237
74M/ Front Edge55At each stage of their
lives, the needs and desires of the baby boomers
have become the dominant concerns of American
business and popular culture. If you can
anticipate the movement of the baby-boom
generations life-span migration, you can see the
future.Ken Dychtwald, Age Wave
238
Aging/Elderly2X growth rateIm
in charge!Experiences vs. ProductsDesign
revolution!Good source Ken Dychtwald, Age Wave
239
Priorities Aging/ElderlyExperiences
Convenience Comfort Access Respect!
240
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
241
Brand OutsideStrategy 4Design Rules!
242
And Tomorrow Fifteen years ago companies
competed on price. Now Its quality. Tomorrow
its design.Robert Hayes
243
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
244
Design is treated like a religion at
BMW.Fortune (10/98)
245
Drop-dead Charm!The new Beetle fails at most
categories. The only thing it doesnt fail in is
drop-dead charm.Jerry Hirshberg, Nissan Design
International
246
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
247
Design as SoulWe dont have a good language
to talk about this kind of thing. In most
peoples 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 that ends up expressing itself
in successive outer layers of the product or
service.Steve Jobs
248
Check Out the LanguageTomorrow its design
Design is the only thing Design is
religion ...Drop-dead charm Object of
desire Soul
249
The I.D. International Design FortyAirstream
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
250
Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
251
One-sixth Second per Item!During the 30
minutes you spend on an average trip to the
supermarket, about 30,000 products vie to win
your attention and ultimately to make you believe
in their promise.Thomas Hine, The Total Package
252
Design Moments!Shopping cart 2X heavy
itemsSource Wall Street Journal (11-24-99)
253
Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
254
Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
255
MessageServices are Not Intangible!You give
off hundreds of design cues daily!YOU ARE A
DESIGNER!
256
Graceful language!
257
Susan Sargent Designs PLEASE COMPLAIN!Thanks
for your order!We dearly want everything to go
p-e-r-f-e-c-t-l-y!If the order was late. Or
wrong.Or if any of the goods are damaged in the
slightest.Or if youre just having a lousy day
and want to unload on someone Call our
Customer Care Hotline!
258
Beauty Contest!1. Pick one form/ document
invoice, airbill, sick leave policy, returns
claim form.2. Rate it on a 1 to 10 scale (1
Awful 10 Scintillating) on three dimensions
Beauty, Grace, Clarity. 3. Repeat every 15
days.
259
WEB Words TPNO CLUTTER!
260
No Clutter! CNNSI.com developed an increasingly
common problem. In the midst of adding material,
its design went bad. CNNSI became so packed with
links, new sections and graphics that it actually
became hard to find something as basic as the
score of last nights ballgame. Then it got
worse. The team tried to make new graphic
elements eye-catching enough to stand out from
the sites clutter. But the surfers ignored them,
thinking they were ads.Business Week 9-99
261
Huge Opportunities That Damn Few Are
Pursuing! Women!The rapidly aging
population!Design!
262
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
263
Brand OutsideStrategy 5Its the Experience!
264
Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theater
Every Business a Stage
265
Whats the plot?Freeman Thomas, designer
266
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
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
267
Safe, On Time and We defined personality as a
market niche. We seek to amuse, to surprise, to
entertain.Herb Kelleher, Main Man, LUV
Airlines
268
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
269
Mantra Any good can be ing-edthe driving
experiencethe pumping experiencethe sitting
experiencethe reading experiencethe washing
experiencethe cooking experienceJoseph Pine
James Gilmore, The Experience Economy Work Is
Theater Every Business a Stage
270
Cars are not simply to get you from place to
place. They ought to be entertainment. We are
sort of in the entertainment business.J Mays,
Ford
271
This is the end of the pure product era. For
instance, car makers are beginning to understand
that the car is a platform for delivering
services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
272
Experiencing1 Oxymoron Respect from an
Airline!I can cope with delays. I cannot cope
with lies especially Sins of Omission. IT IS
DISRESPECTFUL TO ME AS A HUMAN BEING!!
273
Marketing Aestheticsmanaging aesthetics
experiences aesthetics strategy marketing
of sensory experiences that contribute to the
organizations or brands identity mapping
strategic vision to sensory stimuliSource
Marketing Aesthetics, Bernd Schmitt Alexander
Simonson
274
Look Feel Taste Touch Sound Smell
Texture Color Typeface Etc. EXPERIENCE
Bernd Schmitt Alexander Simonson,
Marketing Aesthetics
275
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Women Rule! (and the elderly)S4 Design Rules!
(too)S5 Its the Experience!Bottom Line
Glorious Age of the BRAND!
276
Brand OutsideBRAND POWER!
277
Brand?DistinctionExcellenceEmotional
SignatureTrustworthinessConsistencyShorthand
278
Brand It! Now, More Than Ever!The increasing
difficulty in differentiating between products
and the speed with which competitors take up
innovations will assist in the rise and rise of
the brand.Gillian Law and Nick Grant,
Management New Zealand
279
No Room for Brands?NikeSaturnCNNAmerica
OnlineCharles SchwabStarbucksThe GapIntelEtc.
280
Brand Trust!Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but Intel Inside has become a
trust mark - a trademark that consumers put
their faith in.The Economist
281
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
282
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
283
Calling the Corporate Shrink!Organizational
Psychotherapy/WHO WE ARE!
284
Scott Bedbury/ Nike, StarbucksA Great Brand
taps into emotions. Emotions drive most, if not
all, of our decisions. A brand reaches out with a
powerful connecting experience. Its an emotional
connecting point that transcends the
product.A Great Brand is a story thats never
completely told. A brand is a metaphorical story
thats evolving all the time. This connects with
something very deep - a fundamental appreciation
of mythology. Stories create the emotional
context people need to locate themselves in a
larger experience.
285
Consumers dont simply buy products, they buy
attitudes as well. When confronted with
proliferation and diversity, choices become
increasingly informed by belief. Consumers want
to know who is behind the products that they buy.
They want to know the company. They want to know
what you think.Jesper Kunde, Corporate
Religion
286
Corporate Religion is a completely new way of
thinking about companies. Today, the product is
still the main communication highway in the
company. When companies make the shift to selling
solutions, brands and attitudes communicating
the companys attitudes and values becomes the
decisive parameter for success. It demands that
you find out who you are as a company.Jesper
Kunde, Corporate Religion
287
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, Toms of
Maine
288
Dare to be different. Make people notice. The
world is brimming with new competitors and
look-alike products. How do you stand
out?James Daly, Editor, Business 2.0
289
Brand Special Passion Connection
Caring (Way) beyond market research
290
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
291
In the funky village, real competition no longer
revolves around marketshare. We are competing for
attention mindshare and heartshare.Kjell
Nordstrom and Jonas Ridderstrale, Funky Business
292
The Ten Rules of Radical MarketingCEO must
own the marketing function!Hyper-lean Mktg.
Dept. (No filters!)CEO hangs out with
customers!Love Respect your customers!Just
Say No to market research!Hire only passionate
missionaries!Create a Community of
users-customers!Emphasize one-to-one marketing
tools!Celebrate craziness!Be insanely True to
the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
293
P.S. All this applies to the Finance
DepartmentNow Finance Inc.
294
T.T.D. 1 How can I know what I think until I
see what I say Exercise Write copy for a
bookmark! (Etc.)Graham Wallas, The Art of
Thought
295
Brand LeadershipLead Out Loud!
296
Live the Brand!
297
ENTHUSIASM RULES!I am a dispenser of
enthusiasm. Ben ZanderTP on Bob
Nardelli/GE Power Systems
298
Astonish me! S.D.Build something great!
H.Y.Immortal! D.O.
299
Leadership is a performance. You have to be
conscious of your behavior, because everybody
else is. Carly Fiorina
300
If you want to be persuasive, you have to
generate a high level of energy. Its energy that
makes you visible, that gives you presence. I
call it performance energy, and its the basis
of dynamic leadership. There is nothing
artificial about it. Performance energy is an
authentic part of who you are. You just have to
access it.Martha Burgess, Theater Techniques
for Business People
301
Ann R.s Gospel

• Show up!
• Know your message!
• Put yourself at risk!

302
BE ASHAMED TO DIE UNTIL YOU HAVE WON SOME VICTORY
FOR HUMANITY!Horace Mann, founder, Antioch
College
303

• It was much later that I realized Dads 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

304
If you ask me what I have come to do in this
world, I who am an artist, I will reply, I am
here to live my life out loud.Emile Zola
305
Id rather regret the things I have done than
the things I have not.Lucille Ball
306
If things seem under control, youre just not
going fast enough.Mario Andretti
307
THE END