Tom Peters SeminarM3 Rollercoaster Days: Learning to Rock

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Tom Peters SeminarM3 Rollercoaster Days
Learning to Rock Roll!Clark/Bardes/22Feb2
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There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
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Rollercoaster Days2001 Blood on retails
streets Montgomery Ward, Bradlees, Sears,
Penney. Layoffs/10K Chrysler 27K, Lucent,
WorldCom, GM, Dana. GE 80,000??? Inet
driven. Other Big Sara Lee, Ford, Caterpillar,
Motorola. Human genome map published. Human
cloning within 1 year. First space tourist in
training.
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108 X 5 vs. 8 X 1 White Collar Revolution!
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Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
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Brand InsideBrand Talent The Great War for
Talent
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When land was the productive asset, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
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We have transitioned from an asset-based
strategy to a talent-based strategy.Jeff
Skilling, COO, Enron
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersConsulting bus! (31,000
bods)
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1. ObsessionP.O.T. All ConsumingPursuit
of Talent
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From 1, 2 or 3 JW to Best talent in
each industry segment to build best proprietary
intangibles EMSource Ed Michaels, War for
Talent (05.17.00)
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2. GreatnessOnly The Best!
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Home Depot 7 new growth initiatives (20B to
100B in 5-7 years)Arthur Blank BEST PERSON IN
THE WORLD TO HEAD EACH INITIATIVEE.g. COO of
IKEA to head international expansionEd
Michaels, War for Talent (05.17.00)
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3. PerformanceUp or out!
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.Ed
Michaels, War for Talent (05.17.00)
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Message Some people are better than other
people. Some people are a helluva lot better than
other people.
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4. PayFork Over!
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Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
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We value engineers like professional athletes.
We value great people at 10 times an average
person in their function.Jerry Yang, Yahoo
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So-so plant manager, 1M per year. Pay 110,000
plus 60,000. Top plant manager, 3-4M per year.
Pay 135,000 plus 90,000. Net 2-3M for
50K.Source Ed Michaels et al., The War for
Talent, re Georgia Pacific
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What gets measured gets done. What gets paid
for gets done more. What gets paid a lot for
gets done a lot more.
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Banking Incentive Pay for X-selling
30Customer Retention 4Source ABA Banking
Journal
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5. WomenBorn to Lead!
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
Business Week, 11.20.00
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Women and new-economy management
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The New Economy Shout goodbye to command and
control!Shout goodbye to hierarchy!Shout
goodbye to knowing ones place!
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Womens Stuff New Economy MatchImprov
skillsRelationship-centricLess rank
consciousnessSelf determinedTrust sensitive
IntuitiveNatural empowerment freaks less
threatened by strong peopleIntrinsic
motivation Extrinsic
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TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
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Investors are looking more and more for a
relationship with their financial advisers. They
want someone they can trust, someone who listens.
In my experience, in general, women may be better
at these relationship-building skills than are
men.Hardwick Simmons, CEO, Prudential
Securities
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Read This!Winning the Talent War for Women
Sometimes It Takes a Revolution Douglas
McCracken, HBR 11-12/2000
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Deloitte was doing a great job of hiring
high-performing women in fact, women often
earned higher performance ratings than men in
their first years with the firm. Yet the
percentage of women decreased with step up the
career ladder. Most women werent leaving to
raise families they had weighed their options in
Deloittes male-dominated culture and found them
wanting. Many, dissatisfied with a culture they
perceived as endemic to professional service
firms, switched professions.Douglas McCracken,
Winning the Talent War for Women HBR
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63 of 2,500 top earners in F5008 Big 5
partners 14 partners at top 250 law firms43
new med students 26 med faculty 7
deansSource Susan Estrich, Sex and Power
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MantraM3Talent Brand
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Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
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EVP Challenge, professional growth, respect,
satisfaction, opportunity, reward EVP The
companys fingerprint B.P.Source Ed
Michaels et al., The War for Talent
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Dick Kovacevitch (Wells Fargo) on TalentYou
dont just write a memo saying people are a
competitive advantage. You back that up with
training, incentives and the interpersonal
relationships developed over time that add up to
your employees caring more about their customers
than the employees of your competitors. I cant
overstate how differentiating that is, as opposed
to a silver bullet about figuring out some way
to segment the market.Source ABA Banking
Journal
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Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
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The Death Knell for Ordinary Pursuing
Difference!
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Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
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Analysts said we dont care about revenue, just
give us the bottom line. They preferred cost
cutting, as long as they could see 2 or 3 years
of EPS growth. I preached revenue and the
analysts eyes would glaze over. Now revenue is
in because so many got caught, and earnings
went to hell. They said, Oh my gosh, you need
revenues to grow earnings over time. Well,
Duh!Dick Kovacevitch, Wells Fargo (in ABA
Banking Journal)
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What weve been doing is underserving our best
customers. Its easy to reprice our unprofitable
customers, to take away branches from them and
save some cost, but what are we doing to delight
our best customers?James McCormick, First
Manhattan Consulting Group (ABA Banking Journal)
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Forces _at_ Work IIThe Commodity Trap
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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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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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Brand OutsideStrategy 1Use E-Commerce to
Re-invent Everything!
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OVERVIEW
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Tomorrow Today Cisco!90 of 20B
(50M/day)75 mfg. outsourced 50 of orders
routed to supplier who ships directGross
margin 65 Net margin 28Annual savings in
service and support from customer
self-management 550M
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Enron eWorld Price a structured trade, per
John Arnold, 26 Early 1999 30 times a day. Late
2000 30 times per minute.Long-term gas
contract. 1989 9 months, 400 deals. Late 90s
2 weeks, 2 per week. Late 2000 5 such deals per
daySource www.ecompany.com (1/2001)
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COMMUNITY SERVICES!/ CUSTOMER CONTROL!
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Tomorrow Today Cisco!90 of 20B save
550MC.Sat e C.Sat HCustomer Engineer
Chat Rooms/Collaborative Design (1B free
consulting) (45,000 customer problems a week
solved via customer collaboration)
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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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Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
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RADICAL STRATEGIES REQUIRED
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One cannot be tentative about this. Excuses like
channel conflict or marketing and sales arent
ready cannot be allowed. Delay and you risk
being cut out of your own market, perhaps not by
traditional competitors but by companies you
never heard of 24 months ago.Jack Welch
07.00/Forbes.com
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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Banking is necessary. Banks are not.Dick
Kovacevitch
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Brand OutsideStrategy 2Women Rule!
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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
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Riding Lawnmowers
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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 50(!!!) of Web users 6 of 10 new
users 83 of wired women are primary decision
makers for family healthcare, finances,
education.Source Business Week Jupiter
Communications
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Yeow!1970 12002 50
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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Mars Venus!Men 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.Faith Popcorn
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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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What If What if ExxonMobil or Shell dipped
into their credit card database to help commuting
women interview and make a choice of car pool
partners?What if American Express made a
concerted effort to connect up female
empty-nesters through on-line and off-line
programs, geared to help women re-enter the
workforce with todays skills?EVEolution
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Women dont buy brands. They join them.Faith
Popcorn, EVEolution
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THIS JUST MIGHT BE THE BIGGEST THING IN THIS
SEMINAR. PLEASE THINK ABOUT IT!
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Honey, are you sure you have the kind of money
it takes to be looking at a car like this?
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27 March 2000 email to TP from Shelley Rae
Norbeck I make 1/3rd more money than my
husband does. I have as much financial pull in
the relationship as he does. Id say this is also
true of most of my women friends. Someone should
wake up, smell the coffee and kiss our asses long
enough to sell us something! We have money to
spend and nobody wants it!
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If we are single, they say we couldnt catch a
man. If we are married, they say we are
neglecting him. If we are divorced, they say we
couldnt keep him. If we are widowed, they say
we killed him.Kathleen Brown, on the joys of
female political candidacy
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Brand OutsideStrategy 3BRAND POWER!
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Cisco, Dell Brand-owning companies who sell
Customer SatisfactionSource David Schneider
Grady Means, MetaCapitalism e.g. Cisco owns 2
of 38 assembly plants
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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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WHO ARE YOU these days ?TP to Client
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Brand Promise Exercise (1) Who Are WE? (1
page, 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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Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
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Brand LeadershipPassion 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)