Distinct or Extinct: Design Differentiator

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Distinct or ExtinctDesign Differentiator
1Unilever/IDEO/TPCThe Design
Museum/28.11.2001
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All Slides Available at tompeters.comNote
Lavender text in this file is a link.
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I. Welcome to the Age of GAK!
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lt1000A.D. paradigm shift 1000s of years1000
100 years for paradigm shift1800s gt prior 900
years1900s 1st 20 years gt 1800s2000 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
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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)
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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.SP
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
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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 Innovators Dilemma
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A pattern emphasized in the case studies in this
book is the degree to which powerful competitors
not only resist innovative threats, but actually
resist all efforts to understand them, preferring
to further their positions in older products.
This results in a surge of productivity and
performance that may take the old technology to
unheard of heights. But in most cases this is a
sign of impending death.Jim Utterback,
Mastering the Dynamics of Innovation
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7 Rules for Leading/THRIVING in a
Recession1. Its ALREADY too late.2. Show up
tell the truthCREDIBILITY rules.3. Kill with
KINDNESS.4. Sharp pencils are imperativebut
dont forget that the CUSTOMER our TALENT
RISKY INVESTMENTS are still our long-term
Bread Butter. 5. Everythings different,
everythings the sameits the NEW ECONOMY,
more than ever, stupid!6. Use the trauma to
mount the bold initiatives you should have
long before mounted Flux OPPORTUNITY.7.
Were in a War of Organizational Modelsfrom
retail to the Pentagon. IDEAS MATTER MOST.
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Message Everybodys scrambling. Nobodys got it
right.
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II. The 3B ProblemBetter But Boring!
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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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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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Message Find an edge. Or else.
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III. We Must Lead Different or Doomed!
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If 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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These days, you cant succeed as a company if
youre consumer led because in a world so full
of so much constant change, consumers cant
anticipate the next big thing. Companies should
be idea-led and consumer-informed.Doug Atkin,
partner, Merkley Newman Harty
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Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
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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
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COMPETITORS 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
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Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
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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
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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) dont 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) Dont try to learn
anything from people who seem to have solved the
problems you face. (11) Forget the past,
particularly your companys success. Bob
Sutton, Weird Ideas that Work 11½ Ideas for
Promoting, Managing and Sustaining Innovation
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Message You are paid to lead. So lead!
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IV. Design The No.1 Source of Passionate
Attachment! (Or undying despair)
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Design is WHAT WHY I LOVE. LOVE.
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I LOVE my ZYLISS Garlic Peeler!
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Design is WHY I GET MAD. MAD.
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Wanted THE DESIGNER OF MY RADIO SHACK PHONE.
Major Reward!
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Design is never neutral.
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Hypothesis DESIGN is the principal difference
between love and hate.
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We 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.Steve Jobs
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Philippe Starck
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Today the problem is not how to produce more to
sell more. The fundamental question is that of
the products right to exist. And it is the
designers right and duty to question the
legitimacy of the product.Philippe Starck
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My main task when I was artistic director at
Thompson for four years to make the company
virtuous. Not because there was a desire to do
evil, but because they had simply forgotten their
purpose in lifeto be of service.Philippe
Starck
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I invented the slogan Thompson From Technology
to Love. That completely repositioned the
problem. Because now we were saying that
technology wasnt an end in itself, but just a
meansand that the real goal was what had
always been there, the original priority,
humanity, whose ultimate criterion is love. That
connects back to the idea of the friendly object,
the good object.Philippe Starck
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At Thompson I outlawed the word consumer in
all company meetings, and insisted it be replaced
by the words my friend, my wife, my
daughter, my mother, or myself. It doesnt
sound the same at all, if you say It doesnt
matter, its shit, but the consumers will make do
with it, or if you start over again and say,
Its shit, but it doesnt matter, my daughter
will make do with it. All of a sudden, you cant
get away with it anymore. There is an enormous
task to be done with this kind of symbolic
repositioning.Philippe Starck
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Message Engage your Client in an examination-
exploration of why we care about stuff. Or dont.
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THE BASE CASE I am a design fanatic.
Personally, though not artistic, I love cool
stuff. I love what I love and I hate what I
hate. 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 doesnt. Furthermore, its one of those
things that damn few companies put
consistently on the front burner.
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V. Design is a Great Story!
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A key perhaps the key to leadership is
the effective communication of a story.Howard
Gardner Leading Minds An Anatomy of Leadership
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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
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Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
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PlotWilliams Sonoma 6 was 10Crate Barrel
8Sharper Image 9Smith Hawken 8Garnet
Hill 9L.L. Bean 4 was 9Lands End
7Colonial Williamsburg ?
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Message Whats the plot? is a compelling
exercise!
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VI. Great Design is Respectful
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Sometimes I have episodes of wild fury in rental
cars. Its not road rage. Its more like design
rage.Susan Casey, www.ecompany.com
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User STOP BLAMING YOURSELF! (Don
Norman/Design of Everyday Things)
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Paradox ?!Great Design WOW! GRACE
usability writ large
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My favorite word is grace whether its amazing
grace, saving grace, grace under fire, Grace
Kelly. How we live contributes to beauty
whether its how we treat other people or the
environment.Celeste Cooper, designer
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Rodales on Grace elegance charm
loveliness poetry in motion kindliness ..
benevolence benefaction compassion beauty
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Message Usability rules! Grace is a better
word than usability.
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VII. Caution!
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Message All the cool stuff looks exactly
like all the other cool stuff in this , THE
BRIGHT NEW AGE OF DESIGN.
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Against Smoothness (Harpers Magazine 07.2000)
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Message Buy a new CAD package. Or a set of
pencils.
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VIII. Design Work Down with Dilbert!
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White Collar Revolution!
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So what will be the Basic Building Block of the
New Org?
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Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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P.S.F. SummaryH.V.A. Projects (100)Pioneer
ClientsWOW Work (see below)Hot Talent (see
below)Adventurous cultureProprietary Point
of View (Methodology)W.W.P.F. (100)/Outside
Clients (25)
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BMWs Designworks/USA gt50 from outside work
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Language matters! Wow! BHAG! Takes your breath
away!
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Intimidate their users imaginations
Wheres the revolution? J Allard, on the Xbox
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Lets make a dent in the universe.
Steve Jobs
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11Sept2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
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New Springs TurnkeyCollections.Flexible
sourcing.Packaging.Merchandising.Promotion.Sys
tems Site mgt.
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We are a real estate facilities consulting
organization, not just an interior design
firm.Jean Bellas, founder, SPACE (from SMPS
Marketer)
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Who was the number one employer of architecture
school grads in the U.S. last year?
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Omnicom 57 (of 6B) from marketing services
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The move toward outsourced manufacturing
represents an obvious opportunity for contract
manufacturers such as Flextronics 93M to 15B,
93-00, but its also a potential boon to
product innovation. The future of gadget-making
is not about making gadgets its about imagining
them. Someone else makes the imaginary real. All
that money that used to go to fund infrastructure
is going into design and innovation, says Flex
CEO Michael Marks.Wired/11.2001
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IX. Get Over It ALL YOU NEED IS ONE!
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Topic Boss-free Implementation of STM /Stuff
That MATTERS!
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Worlds Biggest Waste Selling Up
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Heart of the MatterF2F!/K2K!/1_at_T/R.F!A.Fre
ak to Freak/Kook to Kook/One at a Time/
Ready.Fire!Aim.
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Joe T. Jones 1942 - 2000HE WOULDA DONE SOME
REALLY COOL STUFF BUT HIS BOSS WOULDNT LET
HIM!
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Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
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Message Find one freak. Find one offline
project. Forget selling up. Quit bitching about
powerlessness.
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X. The All-Out WAR FOR TALENT!
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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
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The Cracked Ones Let in the LightOur 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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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
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Message Design - writ large, as the Mother of
Passion dramatically affects the basic Great
Place to Work value proposition.
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XI. Design Women Opportunity No.1?
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?????????Home Furnishings 94Vacations
92Houses 91Consumer Electronics 51 Cars
60 (90)All consumer purchases 83 Bank
Account 89Health Care 80
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????80
90
Riding Lawnmowers
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2/3rds working women/50 working wives gt
5080 checks61 bills53 stock (mutual fund
boom)43 gt 500K95 financial decisions/ 29
single handed
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4.8T gt Japan9M/27.5M/3.6T gt Germany
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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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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!)
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Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
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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 Dont Listen Women Cant Read
Maps
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Resting State 30, 90 A woman knows her
childrens 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 Dont Listen Women Cant
Read Maps
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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.Barbara Allan Pease, Why Men
Dont Listen Women Cant Read Maps
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Female hearing advantage contributes
significantly to what is called womens
intuition and is one of the reasons why a woman
can read between the lines of what people say.
Men, however, shouldnt despair. They are
excellent at imitating animal sounds.Barbara
Allan Pease, Why Men Dont Listen Women Cant
Read Maps
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
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The Connection Proclivity in women starts
early. When asked, How was school today? a girl
usually tells her mother every detail of what
happened, while a boy might grunt, Fine.
EVEolution
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Women dont buy brands. They join them.Faith
Popcorn, EVEolution
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Today, 80 per cent of objects are unnecessarily
macho. Yet it is plain The intelligence of a
truly modern society must be feminine. Apart
from a machine pistol, I cant think of many
objects which actually need to be extravagantly
masculine.Philippe Starck
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STATEMENT OF PHILOSOPHY I am a businessperson.
An analyst. A pragmatist. The enormous social
good of increased womens power is clear to me
but it is not my bailiwick. My game is
haranguing business leaders about my fact-based
conviction that womens increasing power
leadership skills and purchasing power is the
strongest and most dynamic force at work in the
American economy today. Dare I say it as a
long-time Palo Altan THIS IS EVEN BIGGER THAN
THE INTERNET!Tom Peters
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Stupid!
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Ad from Furniture /Today (04.01)MEET WITH THE
EXPERTS! How Retailings Most Successful Stay
that WayPresenting Experts M 16F ??
(94 272)
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0
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The Furniture Industry
doesnt understand BRANDINGdoesnt understand
FASHIONdoesnt understand WOMENdoesnt
understand SPEED RESPONSIVENESS
VALUE-ADDED SERVICESdoesnt
understand EXCITING RETAIL
PRESENTATION
EXPERIENCE MARKETING. And is run
by old, conservative white guys who dont even
understand what they dont understand.
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Prescription SHE is the Consumer.
(PERIOD.)SHE is the Brand. (PERIOD.)75 women
designers (Men CANNOT design for women.
PERIOD.)75 women reps.Cool retail spaces in
high-rent districts (à la Ethan Allen).Match
furniture with accessories i.e., create an
experience.FOCUS ON RELATIONSHIPS-FOR-LIFE,
not transactions.
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Message Men cannot design for womens needs??????
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XII. Design the Aging Opportunity No. 1A?
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Subject Marketers StupidityIts 18-44,
stupid!
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Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
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2000-2010 U.S. Stats18-44 -155
21(55-64 47)
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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
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Aging/ElderlyIm in charge!
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507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury610B
healthcare spending/74 prescription drugs5 of
advertising targetsKen Dychtwald, Age Power
How the 21st Century Will Be Ruled by the New Old
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Message You wannabe relevant? This is a VERY
Big Deal. Listen up.
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XIII. Design Cornerstone of the Age of the Brand
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WHO ARE YOU these days ?TP to Client
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Design Character (which is why knock offs are
so easy to see through) (Design WHO ARE WE?!)
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Most companies tend to equate branding with the
companys marketing. Design a new marketing
campaign and, voila, youre on course. They are
wrong. The task is much bigger. It is about
fulfilling our potential not about a new logo,
no matter how clever. WHAT IS MY MISSION IN
LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW
DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE
WORLD IS ACTUALLY UNIQUE? The brand has to give
of itself, the company has to give of itself, the
management has to give of itself. To put it
bluntly, it is a matter of whether or not you
want to be UNIQUE NOW.Jesper Kunde, A
Unique Moment
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We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
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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)
Big Enchilada Try em on a skeptical Client!
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1st Law Mktg Physics OVERT BENEFIT (Focus 1 or
2 gt 3 or 4/One Great Thing. Source 1
Personal Passion)2ND Law REAL REASON TO
BELIEVE (Stand Deliver!)3RD Law DRAMATIC
DIFFERENCE (Execs Dont Get It See the next
slide.)Source Jump Start Your Business Brain,
Doug Hall
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2 QuestionsHow 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
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The Heart of Branding
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WHO ARE WE?
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WHATS OUR STORY?
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EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
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WHY DOES IT MATTER TO THE CLIENT?
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EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DIFFERENCE TO THE CLIENT
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Message THIS IS THE BIG ENCHILADA. Case logic
(1) Brand is it. (2) Brand Emotional
reaction. (3) Design is THE KEY to emotional
reaction. (4) Designers are the key to the
strategic success of the enterprise. If theyd
only flick the chip off their collective
shoulders.
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XIV. Design Leadership Passion Rules!
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Create a Cause, not a business. Gary Hamel,
Fortune (06.00), on re-inventing a company
(Exemplar 1 Charles Schwab)
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I am a dispenser of enthusiasm.Ben Zander
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Message Designers appropriately considered
are the script writers for The Compelling Story
called Our Company Matters Because