American Skandia Leaders Council Ojai03.04.00

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American SkandiaLeaders CouncilOjai/03.04.00
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Only in Palo Alto CLASSIFIED AD WILL TRADE
Domain name thiswiredhouse.com or
etake-out.com for Palo Alto living situation.
Panet_at_nanospace.comSource San Jose Merc
(3-22-00)
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Pentium III 800MHz 42,893.00/Hermes Scarf
1,964.29Saving Private Ryan on DVD
874.75Mercedes-Benz 18.98Hot-rolled steel
0.19Source Fortune (3.20.00)
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
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64/24
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Goal?
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It means nothing less than the total reinvention
of this company.
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Jacques New New FordFord MSN CarPointFord
Yahoo!Ford OracleFord HP/MCIWorldcomEtc.Et
c.
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TP2000 A Broken RecordGE Power
SystemsAnheuser BuschFitLinxxYellow
FreightFidelityTime Inc.
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WebTotal ReinventionConsumer ControlSpeedTerro
r/OpportunityBrand Power/ Communication
Imperative
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There is probably going to be more confusion in
the business world in the next decade than there
has been in any decade in history.Steve Case
(2-00)
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We are in a brawl with no rules.Paul Allaire
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Forces _at_ WorkThe Destruction Imperative!
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Forget LearnThe problem is never
how to get new, innovative thoughts into your
mind, but how to get old ones out.
Dee Hock
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Q What do you do when you are a big, dopey
company and out of ideas?
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A You merge with another big, dopey company
that doesnt have any ideas either.
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R An incredibly big, incredibly dopey company
going nowhere.
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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 Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
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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
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R DIntels venture fund 275 investments,
3.5BSource Fast Company (12-99)
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C.E.O. to C.D.O.
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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Paradox ReduxAtlanta 113,600 1 metro
areaLayoffs major BellSouth, Lockheed,
Coca-Cola
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Brand InsideBrand Org!
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And Now the Equivalent White Collar
Revolution!
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108 X 5vs. 8 X 1 540 vs. 8
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The coefficient of friction associated with the
grunge of business is amazing!Michael Schrage
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And 50M _at_ 20,000 1TMichael
Dertouzos, MIT, on Indias back office
outsourcing potential 02-08-00/Delhi
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The Pincer 5Destructive entrepreneurs/ Global
CompetitionWhite Collar RobotsTHE INTERNET!
E.g. GM Ford DaimlerChryslerGlobal
Outsourcing E.g. India, MexicoSpeed!!
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Assetless CompanyJ.B.
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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.
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The -!! in the middleJim Clark on
Healtheon/WebMD twixt docs, patients and
providers 300B in waste (?) source Michael
Lewis, The New New Thing
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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PSF 1.0Professional Service Firm Conversion Kit
/ Release 1.0
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PSF 1.0 Department Head to Managing
Partner, HR IS, etc. Inc.
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Why are there no books on how to create a Cool,
Rocking, WOW-producing Finance Department?
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C.I.O. to C.E.F.R.N.S.
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Chief Evangelist For Really Neat Stuff
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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!
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Brand InsideBrand Work!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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But Does It Matter ????On time, on budget
who cares? anon. seminar participant (4/99)
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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)
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Kaiser 4.15.29
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Liberty Ship2 years240 days9 hours4 days,
15 hours, 29 minutes
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Just Say No to S-t-r-e-t-c-h
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Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
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Characteristics of the Also Rans

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

Source Fortune on most admired
global corporations (10/26/98)
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Brand InsideBrand You!
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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
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If one quarter cant make the journey, thats
the way it has to be.Carly Fiorina
(1-00/Forbes)
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Personal Brand Equity Evaluation

• I am known for 2 to 3 things next year at this
  time Ill also be known for 1 more thing.
• My current Project is challenging me
• New things Ive 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
  years at this time

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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!

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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!

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Well-behaved women rarely make history.Anita
Borg, Institute for Women and Technology
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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

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Rules per the Cluetrain ManifestoRelax!Have
a sense of humor!Find your voice and use
it!Tell the truth!Dont panic!Enjoy
yourself!Be Brave!Be curious!Play more!Dream
always!Listen up!Rap on!
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Brand InsideBrand Talent!
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Issue Y2KThe Great War for Talent!
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There is no talent shortage if you are
a GPTWGreat Place To Work
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Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
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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
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The NAESP
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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

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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!

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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!

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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
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Talent Brand
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Brand OutsideBrand Inside
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Brand OutsideContextNo Commodities!
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In the Beginning The audit has become a
commodity.Big 5 audit partner to TP
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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
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Quality Not Enough!While everything may be
better, it is also increasingly the same.Paul
Goldberger on retail, The Sameness of Things,
The New York Times
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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)
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, working in similar jobs,
coming up with similar ideas, producing similar
things, with similar prices and similar
quality.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
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The 10X/10X Phenomenon10 Times Better/10
Times Less Different
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When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
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Nirvana!- Nordstrom- Ritz Carlton- Adirondack
Guide Boat- OXO- Ziplocs- Magnificent Mile
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Why?Cool!/Surprising!Reliable!Friendly!/Comfor
table!Aesthetically pleasing!
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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
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customer satisfaction to customer
successe.g. commissioning of plant, not
delivery of equipmentSource GE Power Systems
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Brand OutsideStrategy 1Lead the Customer!
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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
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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
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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
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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Brand OutsideStrategy 2Use E-Commerce to
Re-invent the Business!
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35,000,000. ???
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Dells Web sales daily
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2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
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Tomorrow Today Cisco!7B of 10BSave 500M
(service and tech support)C.Sat e C.Sat
HCustomer Engineer Chat Rooms (1B?)
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B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 1-26-00)
T
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GM/Ford/DaimlerChrysler (02-27)Auto parts
supply Co.240B (500B)I.P.O.
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B2B No.1CarStation (auto-body shops),
ChemConnect (chemicals), Collabria (commercial
printing), DigitalThink (corporate training),
E-Steel (steel), Medibuy (medical supplies),
Portera (knowledge workers), Etc., Etc., Etc.,
Etc.
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Welcome to D.I.Y. Nation!Changes in business
processes will emphasize self service. Your costs
as a business go down and perceived service goes
up because customers are conducting it
themselves. Ray Lane, Oracle
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Shop in your UnderwearSource SMd logo for
www.ae.comae American Eagle Outfitters
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Psych 101 Strongest Force on Earth?My need to
be in perceived control of my universe!
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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
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Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
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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
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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
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Red Herring (01/00)75 of online shoppers dont
complete their purchase!
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Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

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There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
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E-business is the final nail in the coffin for
bureaucracy at GE.Jack Welch/GE Annual Report
2000
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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
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Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
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Translation Bureaucracy free Flat org, no
B.S.Systemically integrated Whole supply chain
tightly wired/ friction freeInternet intense
Do it all via the WebKnowledge based Open
accessTime and location free Whenever,
whereverInstantly responsive Speed
demonsCustomer centric Customer calls the
shotsMass customization enabled Every product
and service rapidly tailored to client
requirements
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Getting Right Down to Brass Tacks Bricks
Mortar?Clicks Mortar?All Clicks All the
time?
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1 ANY IDIOT WHO THINKS CONSUMERS ARE GOING TO
GIVE UP THE IN-STORE SHOPPING EXPERIENCE FOR THE
INTERNET IS JUST THAT. AN IDIOT.
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2 ANY IDIOT WHO THINKS WE ARE STILL GOING TO BE
HANGING OUT IN STORES 15 YEARS FROM NOW IS JUST
THAT. AN IDIOT.
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TP ANY IDIOT WHO THINKS THEY KNOW WHICH ONE OF
THE ABOVE TWO STATEMENTS IS TRUE IS JUST THAT.
AN IDIOT.
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Brand OutsideStrategy 3Women Rule!
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?????????Home Furnishings 94Vacations
92Houses 91Bank Account 89Health Care
75Etc.
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48 working wives 5080 checks61 bills53
stock (mutual fund boom)43 500K95
financial decisions/ 29 single handed
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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)
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3.3T 1.5T 4.8T Larger than Japan!
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Most Under-reported story!9M/28M(1 of 4)/3.6T
Germany 400K in 72 132 since
92Sources NFWBO, Cognetics, Business Wire
(030600)
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Yeow!1970 12000 50
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Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
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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.
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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
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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
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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
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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
Sternbergh/ IBM
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Not!!Year of the Woman
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Enterprise Reinvention!RecruitingHiring/Rewardi
ng/ PromotingStructure ProcessesMeasurementStr
ategyCulture VisionLeadershipTHE BRAND ITSELF!
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What kind of car does Mommy want?
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I didnt know company were giving company cars
to secretaries.Source UK financial services
CEO, 12/99
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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
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Speaking of Enormous Missed Huge
Opportunities ...
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74/55At 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
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Aging/Elderly2X growth rateIm
in charge!Experiences vs. ProductsDesign
revolution!Good source Ken Dychtwald, Age Wave
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1965 Doctor will see you now. Doctor will
take care of you.YES, NURSE. ME GOOD PUPPY
DOG.1995 HMO will take care of you.
BULLSHIT.2005 I will take care of me. Id
like your expert help.P.S. THE VIAGRA ETC.
I ORDERED ON LINE IS GREAT.
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Patient-centric Health CareWellness (Fix to
prevent.)Partnership (Tour guide
model.)RESPECT! (Mutual.)WOMEN RULE!Not
HMO-centric, Employer-centric, Insurer-centric,
Doc-centric
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Brand OutsideStrategy 4Its the Experience!
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
143
Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-based Leadership
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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
Theatre Every Business a Stage
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Brand OutsideBRAND POWER!
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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
147
No Room for Brands?NikeSaturnCNNAmerica
OnlineCharles SchwabStarbucksThe GapIntelEtc.
148
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
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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
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Wheres the Corporate Shrink!Organizational
Psychotherapy/WHO WE ARE!
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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
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We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
153
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
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Brand LeadershipLead Out Loud!
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Brand Leadership!A key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner Leading Minds An
Anatomy of Leadership
156
Leadership is a performance. You have to be
conscious of your behavior, because everybody
else is. Carly Fiorina
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Ann Richards DogmaShow up!Know your
message!PUT YOURSELF AT RISK EVERY DAY!