Tom Peters

1
Tom Peters Manifestos2002 The Solutions
Imperative From Customer Satisfaction to
Customer SuccessVersion 02.23.2002
2
1. Base Case
3
Customers will try low cost providers
because the Majors have not given them any clear
reason not to.Leading Insurance Industry
Analyst
4
SWA gt American Continental Delta Northwest
United USAirways.Source Boston Globe
(12.22.2001)
5
Getting Beyond Lip Service!No longer are we
only an insurance provider. Today, we also
offer our customers the products and services
that help them achieve their dreams, whether its
financial security, buying a car, paying for home
repairs, or even taking a dream vacation.Martin
Feinstein, CEO, Farmers Group
6
TP2002 GE Industrial Systems. Farmers. Message
I Same-same kills. Go way up the VA Chain. (Or
else.) Transformation or bust Full-service/
solutions provider. Great rep but NOBODY
OWNS THE SPACE. Message II All dogs must learn
lotsa new tricks. (Bad news Everybodys
after the same space. Mr. Darwin is on the prowl!)
7
Diversity Marketing Communities of Interest
Bank of America relationship specialized
acquisitions Farmers Agency Dashboard
HelpPoint licensed financial planners etc.
etc. etc.
8
2. The Enemy
9
Quality as defined by few defects is becoming
the price of entry for automotive marketers
rather than a competitive advantage.J.D. Power
10
While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
11
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
12
The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices and similar quality.Kjell Nordstrom and
Jonas Ridderstrale, Funky Business
13
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
14
10X/10X
15
Customers will try low cost providers
because the Majors have not given them any clear
reason not to.Leading Insurance Industry
Analyst
16
3. Cut The Internal Crap
17
Dells OptiPlex FacilityBig Job 6 to 8
hours.(80,000 per day)Parts Inventory 100
square feet.
18
In an era when terrorists use satellite phones
and encrypted email, US gatekeepers stand armed
against them with pencils and paperwork, and
archaic computer systems that dont talk to each
other.Boston Globe (09.30.2001)
19
Once devised in Riyadh, the tasking order took
hours to get to the Navys six aircraft
carriersbecause the Navy had failed years
earlier to procure the proper communications gear
that would have connected the Navy with its Air
Force counterparts. To compensate for the lack
of communications capability, the Navy was forced
to fly a daily cargo mission from the Persian
Gulf and Red Sea to Riyadh in order to pick up a
computer printout of the air mission tasking
order, then fly back to the carriers, run
photocopy machines at full tilt, and distribute
the documents to the air wing squadrons that were
planning the next strike. Bill Owens, Lifting
the Fog of War
20
Cisco!90 of 20B (50M/day)Annual savings
in service and support from customer
self-management 550M (P.S. C.Sat e gtgt C.Sat h)
21
Secret Cisco Community!Customer Engineer
Chat Rooms/Collaborative Design (1B free
consulting) (45,000 customer problems a week
solved via customer collaboration)
22
The Real News X1,000,000TowTruckNet.com
23
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
24
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
25
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
26
Reuters (12.11.01) Teens and young adults are
flocking to the Web for health-related
information as much as they are downloading music
and playing games online and more often than
shopping online, according to a national survey
from the Kaiser Family Foundation.
27
One in Four Internet Users Seek Religious
InformationReuters (12.24.2001) (God trumps
money, sex.)
28
One Persons OpinionTP to reporter Service
is MUCH better! Would you go back to bank
tellers and phone operators? Value that I place
on a smile 3 on a scale of 10. Value I place
on fast accurate digital response 11 on a
scale of 10!!
29
CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
30
CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
31
WebWorld Everything Web as a way to run your
businesss innardsWeb as connector for your
entire supply-demand chain Web as spiders web
which re-conceives the industryWeb/B2B as
ultimate wake-up call to commodity
producersWeb as the scourge of slack,
inefficiency, sloth, bureaucracy, poor customer
dataWeb as an Encompassing Way of LifeWeb
Everything (P.D. to after-sales)Web forces you
to focus on what you do bestWeb as entrée, at
any size, to Worlds Best at Everything as next
door neighbor
32
Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
33
Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
34
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
35
Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
36
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
37
Supply Chain 2000When Joe Employee at
Company X launches his browser, hes taken to
Company Xs personalized home page. He can
interact with the entire scope of Company Xs
world customers, other employees, distributors,
suppliers, manufacturers, consultants. The
browser that is, the portal resembles a My
Yahoo for Company X and hooks into every network
associated with Company X. The real trick is that
Joe Employee, business partners and customers
dont have to be in the office. They can log on
from a cell phone, Palm Pilot, pager or home
office system.Red Herring (09.2000)
38
The Real New EconomyImagine a chess game in
which, after every half dozen moves, the
arrangement of the pieces on the board stays the
same but the capabilities of the pieces randomly
change. Knights now move like bishops, bishops
like rooks Technology does that. It rubs out
boundaries that separate industries. Suddenly new
competitors with new capabilities will come at
you from new directions. Lowly truckers in brown
vans become geeky logistics experts. Business
2.0 (9-10.2001)
39
The Real New EconomyOnly a few times in
history have interaction costs radically
changedone was the railroads, then the telegraph
and telephone. Were going through another one
right now.Jeff Skilling, Enron
40
4. A Pitiful Showing
41
Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
42
From Weapon v. Weapon To
Org structure v. Org structure
43
Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.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
44
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
45
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
46
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
47
Chivalry is dead. The new code of conduct is an
active strategy of disrupting the status quo to
create an unsustainable series of competitive
advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of
cunning, speed and surprise. It may be hard for
some to hang up the chain mail of sustainable
advantage after so many battles. But
hypercompetition, a state in which sustainable
advantages are no longer possible, is now the
only level of competition.Rich DAveni,
Hypercompetition Managing the Dynamics of
Strategic Maneuvering
48
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

49
Wendell Phillips, abolitionist Republics exist
only on the tenure of being constantly agitated.
There is no republican road to safety but in
constant distrust.Source Louis Menand, The
Metaphysical Club A Story of Ideas in America
50
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
51
Read This!Richard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
52
5. A White Collar Revolution
53
108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
54
The Pincer 51. Destructive
entrepreneurs/ Global Competition2.
White Collar Robots3. THE INTERNET!
E.g. GM Ford DaimlerChrysler4. Global
Outsourcing E.g. India, Mexico5.
Speed!!
55
IBMs Project eLiza! Self-bootstrapping/
Artilects
56
So what does Drexels demise tell us about
Enron? Companies may die (or commit suicide), but
ideasif theyre any goodsurvive. James
Surowiecki, The New Yorker
57
Every job done in W.C.W. is also done outside
for profit!
58
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
59
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)
60
Model PSF
61
(1) Translate ALL departmental
activities into discrete W.W.P.F.
Products.(2) 100 go on the Web.(3)
Non-awesome are outsourced (75??).(4)
Remaining Centers of Excellence are
retained leveraged to the hilt!
62
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.
63
6. Searching for New Bases for Value Added
64
The Big Day!
65
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
66
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
67
HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
68
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
69
Customer Satisfaction to Customer
SuccessWere 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
70
Keep In Mind Customer Satisfaction versus
Customer Success
71
HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
72
Gerstners IBM Systems Integrator of choice.
(BW/12.01). Global Services 35B. Pledge/99
Business Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house programs/products.
73
HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
74
UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves
represent.ecompany.com/06.01 (E.g., UPS
Logistics manages the logistics of 4.5M Ford
vehicles, from 21 mfg. sites to 6,000 NA dealers)
75
HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
76
New Springs TurnkeyCollections.Flexible
sourcing.Packaging.Merchandising.Promotion.Sys
tems Site mgt.
77
Omnicom 57 (of 6B) from marketing services
78
Who was the number one employer of architecture
school grads in the U.S. last year?
79
The Pursuit of Whatever Accenture to do
ATTs sales customer service for 2.6B/5
years savings to ATT of 50. Accenture to
do Avayas corporate learning training.
Source BW (02.04.2002)
80
VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell
is not a man plagued by self doubt. Mr. Zell
controls public companies that own nearly 700
office buildings in the United States. Now Mr.
Zell says he will transform the real estate
market by turning those REITs into national
brands. Mr. Zell believes clients will start
to view those offices as something more than a
commodity chosen chiefly by price and location.
New York Times (12.16.2001)
81
Problem Everybody is going after the same space!
82
Assetless CompanyJohn Bryan, CEO, on selling
all Sara Lees manufacturing
83
Dont own nothin if you can help it. If you
can, rent your shoes.F.G.
84
Better Red than Dead?/Better Dead than Red?We
will see more and more outsourcing of discovery
processes.Craig Venter
85
Better Red than Dead?/Better Dead than Red?If
we completely outsourced all of our genetic
analysis, wed be held hostage by outside
people. Brian Spear, Director of
Pharmacogenomics, Abbott Labs
86
Pfizer 1,000 projects with academics and
biotechs. Novartis 30 of RD is via
collaborations.
87
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
88
Markets to networks. Hierarchies to networks.
Sellers and buyers to suppliers and users.
Ownership to access. (Age of Access.)
Marginalization of physical property. Weightless
economy. Protean generation. Outsourcing of
everything. Franchising of everything. (Business
format franchising.) (Leasing DNA.) Everything
is a service/platform for services delivery.
(Give away the goods, charge for the services.
VALUE THE RELATIONSHIP. Share of market to
Share of customer.) Every business is show
business. Source Jeremy Rifkin, The Age of
Access
89
7. It Adds Up to an Experience
90
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
91
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
92
The Experience LadderExperiences
ServicesGoods Raw Materials
93
1940 Cake from flour, sugar (raw materials
economy) 1.00 1955 Cake from Cake
mix (goods economy) 2.00 1970
Bakery-made cake (service economy) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
94
Message Experience is the Last 80P.S.
Experience applies to all work!
95
1940 Cake from flour, sugar (raw materials
economy) 1.00 1955 Cake from Cake
mix (goods economy) 2.00 1970
Bakery-made cake (service economy) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
96
Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
97
The Experience LadderExperiences
ServicesGoods Raw Materials
98
Ladder Position MeasureSolutions
SuccessServices SatisfactionGoods
Six-sigma
99
8. Create Beautiful Systems.
100
Fred S.s mediocre thesis. Herb K.s napkin.
101
Great design One-page business plan (Jim Horan)
102
K.I.S.S. Gordon Bell (VAX daddy) 500/50.
Chas. Wang (CA) Behind schedule? Cut least
productive 25.
103
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
104
SWASimple!!!!!!!!!!!! (customers call because
the process is so easy they cant believe theyre
done)30 of revenues directly from site (vs. 6
for others)Source Business Week (09.00)
105
Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
106
Systems Must have. Must hate. / Must design.
Must un-design.
107
Mgt. Team includes EVP (S.O.U.B.)
108
Executive Vice President, Stomping Out
Unnecessary Bullshit
109
Revised wisdom Forget best practice
(stultifying). Concentrate on Driving out worst
practice.Source Equinox Manifesto (12.01)
110
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
111
First Steps Beauty Contest!

• Select one form/document invoice, air bill, sick
  leave policy, customer returns-claim form.
• 2. Rate the selected doc on a scale of 1 to 10
  1 Bureaucratica Obscuranta/ Sucks 10 Work
  of Art on four dimensions Beauty. Grace.
  Clarity. Simplicity.
• 3. Re-invent!
• 4. Repeat, with a new selection, every 15
  working days.

112
9. Renaissance Man/Woman Emerges
113
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
114
N.W.O./Holy Moly Unemployment up 2 Real wage
growth highest since 60s Productivity
soaring.Source BW/02.11.2002
115
Minimum New Work SurvivalSkillsKit2001MasteryRo
lodex Obsession (vert. to horiz.
loyalty)Entrepreneurial InstinctCEO/Leader/Bus
inessperson/CloserMistress of ImprovSense of
HumorIntense Appetite for TechnologyGroveling
Before the YoungEmbracing MarketingPassion
for Renewal
116
Brand You, Big Time!I AM AN ARMY OF ONE
117
Message Distinct or Extinct.
118
My ancestors were printers in Amsterdam from
1510 or so until 1750 and during that entire
time they didnt have to learn anything
new.Peter Drucker, Business 2.0 (08.22.00)
119
26.3
120
3 Weeks in MayTraining Prep 187Work
41(Other 17)
121
1 vs. 367
122
Divas do it. Violinists do it. Sprinters do it.
Golfers do it. Pilots do it. Soldiers do it.
Surgeons do it. Cops do it. Astronauts do it. Why
dont businesspeople do it very much?
123
Invent. Reinvent. Repeat.Source HP banner ad
124
10. Solutions Imperative 100 Work That
Matters WOW Flavor
125
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
126
Language matters! Wow! BHAG! Takes your breath
away!
127
Intimidate their users imaginations
Wheres the revolution? J Allard, on the Xbox
128
Your Current Project?1. Another
days work/Pays the rent.4. Of value.7.
Pretty Damn Cool/Definitely subversive.10.
WE AIM TO CHANGE THE WORLD.
(Insane!/Insanely Great!/WOW!)
129
Learn not to be careful. Photographer Diane
Arbus, to her students
130
Goal Drive out fear. (Deming et al.)Solution
Passion (alone?) drives out fear.
Source Equinox Manifesto (12.01)
131
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
132
BOTTOM LINEThe Enemy!
133
Joe J. Jones 1942 2001 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
134
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
135
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
136
Rule No. 1 (and there are no other rules) How do
we configure our company/operation so that were
truly able to provide talented people the ride
of their lives?Source Equinox Manifesto
(12.01)
137
Sales2001
138
The Sales25 Great Salespeople 1.
Know the product. (Find cool mentors, and use
them.)2. Know the company.3. Know the customer.
(Including the customers consultants.) (And
especially the corporate culture.)4. Love
internal politics at home and abroad.5.
Religiously respect competitors. (No badmouthing,
no matter how provoked.)6. Wire the customers
org. (Relationships at all levels
functions.)7. Wire the home teams org. and
vendors orgs. (INVEST Big Time time in
relationships at all levels functions.) (Take
junior people in all functions to client
meetings.)
139
Great Salespeople 8.
Never overpromise. (Even if it costs you your
job.) 9. Sell only by solving problems-creating
profitable opportunities. (Our product solves
these problems, creates these unimagined
INCREDIBLE opportunities, and will make you a ton
of moneyheres exactly how.) (IS THIS A
PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL
BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE
WRITTEN UP IN THE TRADE PRESS?)10. Will involve
anybodyincluding mortal enemiesif it enhances
the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.11. Know the Brand Story cold live
the Brand Story. (If not, leave.)
140
Great Salespeople 12.
Think Turnkey. (Its always your problem!)13.
Act as orchestra conductor You are responsible
for making the whole-damn-network respond.
(PERIOD.)14. Help the customer get to know the
vendors organization build up their
Rolodex.15. Walk away from bad business. (Even
if it gets you fired.)16. Understand the idea of
a good loss. (A bold effort thats sometimes
better than a lousy win.)17. Think those who
regularly say Its all a price issue suffer
from rampant immaturity shrunken
imagination.18. Will not give away the store to
get a foot in the door. 19. Are wary
respectful of upstartsthe real enemy.20. Seek
several cool customerswholl drag you into
Tomorrowland.
141
Great Salespeople
21. Use the word partnership obsessively,
even though it is way overused. (Partnership
includes folks at all levels throughout the
supply chain.)22. Send thank you notes by the
truckload. (NOT E-NOTES.) (Most are for little
things.) (50 of those notes are sent to those
in our company!) Remember birthdays. Use the word
we. 23. When you look across the table at the
customer, think religiously to yourself HOW CAN
I MAKE THIS DUDE RICH FAMOUS GET HIM-HER
PROMOTED? 24. Great salespeople can
affirmatively respond to the query in an HP
banner ad HAVE YOU CHANGED CIVILIZATION
TODAY?25. Keep your bloody PowerPoint slides
simple!
142
11. The V.A./Solutions Imperative The Talent
Imperative
143
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
144
Model 25/8/53 Sports Franchise GM
145
From 1, 2 or youre out JW to Best
Talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent (05.17.00)
146
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
147
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
148
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
149
Are there enough weird people in the lab these
days?V. Chmn., pharmaceutical house, to a lab
director (06.01)
150
12. V.A. Freakiness
151
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
152
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
153
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
154
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
155
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
156
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
157
The GM/VC model of leadership.
158
The Top Creators of Shareholder ValueAccept
depressed earnings for several quarters to
support hot productExpense rather than
capitalize new venture costsBonuses without
caps
Source Fortune (09.17.2001)
159
13. Tomorrows Organizations Itinerant
Potential Machines
160
TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal if youre
stretching. Want to make their bones in the
revolution.Love the new technologies. Well
rewarded. Dont plan to be around 10 years from
now.
161
TALENT POOL PLUS. Seek out and work with
worlds best as needed (its often needed). We
aim to change the world, and we need gifted
colleagueswho well may not be on our payroll.
162
BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont
knowand then unleash the TALENT. Have a vision
to be DRAMATICALLY DIFFERENTbut dont expect the
co. to be around forever. Will scrap pet
projects, and change course 180 degreesand take
a big write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT
REGRETS AT TIME WASTED ON ME TOO PRODUCTS
AND PROJECTS.
163
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
Visionary leaders matched by leaders with
shrewd business sense HOW DO WE TURN A PROFIT
ON THIS GORGEOUS IDEA? Appreciate market
creation as much as or more than market share
growth. ARE INSANELY AWARE THAT MARKET LEADERS
ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT
MARKET SHARE WILL NOT PROTECT US, IN TODAYS
VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND
KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Case. Etc.)
164
ALLIANCE MANIACS. Dont assume that the best
resides within. WORK WITH A SHIFTING ARRAY OF
STATE-OF-THE-ART PARTNERS FROM ONE END OF THE
SUPPLY CHAIN TO THE OTHER. Including vendors
and consultants and especially PIONEERING
CUSTOMERS who will pull us into the future.
165
TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet at Internet speed.
Reluctant to work with those who dont share
this (radical) vision.
166
POTENTIAL MACHINES-ORGANISMS. Dont know whats
coming next. But are ready to jump at
opportunities, especially those that
challenge-overturn our own way of doing things.
167
14. V.A./ Solutions Imperative The Brand
168
Brand Promise Exercise (1) Who Are WE?
(poem/novella/song, then 25 words.) (2) List
three ways in which we are UNIQUE to our
Clients. (3) Who are THEY (competitors)? (ID, 25
words.) (4) List 3 distinct us/them
differences. (5) Try results on your
teammates. (6) Try em on a friendly Client. (7)
Try em on a skeptical Client!
169
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
170
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
171
The Heart of Branding
172
WHO ARE WE?
173
WHATS OUR STORY?
174
DO THE HOUSEKEEPERS CLERKS BUY IT? ARE YOU
V-E-R-Y SURE?
175
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
176
WHY DOES IT MATTER TO THE CLIENT?
177
EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
178
15. The Solutions ImperativeFrom Customer
Satisfaction to Customer Success.
179
The Solutions25
180
1. Its the (OUR!) organization,
stupid!2. Friction free! 3. No STOVEPIPES!4.
Stovepiping is a F.O.Firing Offense.5. ALL on
the Web! (ALL ALL.)6. Open access!7. Project
Managers rule! (E.g. Control the purse
strings and evals.)8. VALUE-ADDED RULES!
(Services Rule.) (Experiences Rule.) (Brand
Rules.)9. SOLUTIONS RULE! (We sell SOLUTIONS.
Period. We sell PRODUCTIVITY
PROFITABILITY. Period.)10. Solutions Our
culture. 11. Partner with B.I.C.
(Best-In-Class). Period.
181
12. All functions contribute equallyIS, HR,
Finance, Purchasing, Engineering,
Logistics, Sales, Etc.13. Project Management can
come from any function.14. WE ARE ALL IN SALES.
PERIOD.15. We all invest in wiring the
customer organization.16. WE ALL LIVE THE
BRAND. (Brand Solutions. That MAKE
MONEY FOR OUR CUSTOMER- PARTNER.)17. We
use the word PARTNER until we all want to
barf!18. We NEVER BLAME other parts of our
organization for screwups.19. WE AIM TO
REINVENT THIS INDUSTRY!20. We hate the word-idea
COMMODITY.
182
21. We believe in High tech, High touch.22. We
are DREAMERS.23. We deliver . (PROFITS.)
(CUSTOMER SUCCESS.)24. If we play the SOLUTIONS
GAME brilliantly, no one can touch us!25.
Our TEAM needs 100 I.C.s (Imaginative
Contributors). This is the ULTIMATE All Hands
affair!26. This is a hoot!
183
Q Is that all there is?A Quite
possibly.Roches New Scientific MethodFast
Company. And? X-Functional Teams (NO
STOVEPIPES!). Fail fast. The only way to
embrace a technological revolution, Roche has
discovered, is to unleash an organizational
revolution.
184
No longer are we only an insurance provider.
Today, we also offer our customers the products
and services that help them achieve their dreams,
whether its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
185
TP2002 GE Industrial Systems. Farmers. Message
I Same-same kills. Go way up the VA Chain. (Or
else.) Transformation or bust Full-service/
solutions provider. Great rep but NOBODY
OWNS THE SPACE. Message II All dogs must learn
lotsa new tricks. (Bad news Everybodys
after the same space. Mr. Darwin is on the prowl!)
186
Thank You!