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Title: 'There will be more confusion in the business world in th


1
Tom Peters Seminar2001 We Are in a Brawl with
No Rules!Toledo/10.16.2001
2
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
3
Uncertainty We dont know when things will get
back to normal.Ambiguity We no longer know
what normal means.
4
BMcC (1) Hierarchy vs. Network organization.
(2) NWO Doctrine as center of gravity/source
of motivation distributed support
decision-makinglargely self-organizing outside
the military sphere.
5
From Weapon v. Weapon To
Org structure v. Org structure
6
Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
7
I dont like the looks of this. Seeing as how
crazy and scattered entrepreneurs have beaten the
crap out of the monoliths over the last 44 years
in almost every situation, I dont like the
situation. The actual terms of engagement work
against us. For some time, its going to be
ugly.Rich Karlgaard, Publisher, Forbes
8
StructurePart I Brand InsidePart II Brand
OutsidePart III Brand Leadership
9
All Slides Available at tompeters.comNote
Lavender text in this file is a link.
10
Bonus.
11
Boss Talk/WSJProvide a
simple, clear, cool energizing focus.Obsess on
TALENT.Speed gt Perfection. (Clarity, motivation,
rapid adjustment.)Leap gt Line extension. (Beware
me-too, perfecting yesterday.)Tell the
truth.Get out of the office.Listen to customers
face-to-facein their place. Control your
calendar.
12
Juergen Schrempp/DaimlerChryslerDigital
decision making/ the danger of the deadly wish
for harmony
13
Branding Kevin Roberts The great brands have
mystery and sensuality. Apple is the most sensual
product since the vibrator./ Tina Brown You
should be able to throw a magazine on the floor
at any page and know whose magazine it is./
14
The Perils of Me-too Stephen Hardis (Eaton)
Dont have your resources trapped in areas that
are inherently zero-sum games with a very
marginal return./ Phil Condit (Boeing) Just
doing what your competitor does is the biggest
opportunity to lose money. Douglas and Lockheed
built tri-jets to the identical specs and beat
each other silly.
15
Jeff Bezos Its easy to let the in-box side of
your life overwhelm you, so you become a totally
reactive person. The only remedy I know is to set
aside some fraction of your time as your own. I
use Tuesdays and Thursdays as my proactive days,
when I try not to schedule meetings.
16
Jeff Bezos I'm often encouraging people to go
faster, even if it means a worse initial product.
I want us to start learning. The cost of trying
to avoid mistakes is huge in terms of speed.
17
Robert Miller (Federal-Mogul), on Turnarounds
(1) Tell the truth. Play it straight. (2) Make
decisions. Dont study things to death. (3)
Listen to the customer. They are usually more
perceptive than you are about what needs to be
done.
18
Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
19
Forces _at_ Work IThe Destruction Imperative!
20
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
21
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
22
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
23
The New Ge WayDYB.com
24
The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
25
Brand InsideBrand Org Lean, Linked,
Internet-driven, Virtual
26
White Collar Revolution!
27
108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
28
The Pincer 51. Destructive
entrepreneurs/ Global Competition2. White
Collar Robots3. THE INTERNET! E.g. GM
Ford DaimlerChrysler4. Global Outsourcing
E.g. India, Mexico5. Speed!!
29
A bureaucrat is an expensive microchip.Dan
Sullivan, consultant and executive coach
30
Automation75 of what we do 40 expert
decision rules!
31
IBMs Project eLiza!
32
The Pincer 51. Destructive
entrepreneurs/ Global Competition2. White
Collar Robots3. THE INTERNET! E.g. GM
Ford DaimlerChrysler4. Global Outsourcing
E.g. India, Mexico5. Speed!!
33
Assetless CompanyJohn Bryan, CEO, on selling
all Sara Lees manufacturing
34
Dont own nothin if you can help it. If you
can, rent your shoes.F.G.
35
Brand InsideBrand Work The Professional
Service Firm Model
36
So what will be the Basic Building Block of the
New Org?
37
Every job done in W.C.W. is also done outside
for profit!
38
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
39
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)
40
BMWs Designworks/USA gt50 from outside work
41
eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
42
(1) Translate departmental affairs
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!
43
Brand InsideThe Heart of the Value Creation
Revolution PSF Unbound!
44
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
45
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
46
HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
47
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
48
Forget Customer satisfaction! B.N.
49
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
50
GEs Six Sigma ApproachOld view Out of
service 9 days. 4 days are transport, which is
client responsibility.New view ALL 9 DAYS ARE
OUR RESPONSIBILITY! Why? 9 days Clients
World.Source Steve Kerr, VP, GE
51
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)
52
New Springs TurnkeyCollections.Flexible
sourcing.Packaging.Merchandising.Promotion.Sys
tems Site mgt.
53
Brand InsideBrand You Distinct or Extinct
54
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
55
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
56
Sams Secret 1!
57
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
58
You must realize that how you invest your human
capital matters as much as how you invest your
financial capital. Its rate of return determines
your future options. Take a job for what it
teaches you, not for what it pays. Instead of a
potential employer asking, Where do you see
yourself in 5 years? youll ask, If I invest my
mental assets with you for 5 years, how much will
they appreciate? How much will my portfolio of
career options grow? Stan Davis Christopher
Meyer, futureWEALTH
59
Invent. Reinvent. Repeat.Source HP banner ad
60
Brand InsideRedefining the Work Itself The WOW
Project
61
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
62
Brand InsideBrand ActionGetting Started a
Personal Perspective
63
The following slide begins the Boss-Free
Implementation of Stuff That Matters Section.
The slides in this section are heavily
annotated.Use Normal or Notes Page View to
access the notes.
64
Topic Boss-free Implementation of STM /Stuff
That MATTERS!
65
Worlds Biggest Waste Selling Up
66
THE IDEA Model F4 Find a Fellow Freak Faraway
67
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.
68
THE NUGGETDo Something. Do Anything.Get
Going.Now.
69
Opportunity ALWAYS Knocks VFCJ
StrategyVolunteer For Crappy Jobs
70
Is It The Oh-Hell-I-Wish-It-Were-Over
Memorial Day picnicor The First Annual
Seriously Kewl Celebration of Our Incredible
Staff
71
Is It Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?Or A
stealth opportunity to address the War for Talent
via a thoroughgoing review of how safety and
environmental issues contribute to making this a
Great Place to Work?
72
Reframers RulesRule 1 Never accept an
assignment as given! (Please.)Rule 2 Youre
never so powerful as when you are
powerless!Rule 3 Every small project
contains the entire enterprise DNA!
73
BOTTOM LINEThe Enemy!
74
Joe J. Jones 1942 2001 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
75
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
76
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
77
Sales2001
78
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.)
79
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.)
80
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.
81
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!
82
Brand InsideBrand Talent The Great War for
Talent
83
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
84
The Talent Ten
85
1. ObsessionP.O.T. All ConsumingPursuit
of Talent
86
Model 24/7 Sports Franchise GM
87
2. GreatnessOnly The Best!
88
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)
89
3. PerformanceUp or out!
90
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)
91
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
92
4. PayFork Over!
93
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)
94
What gets measured gets done. What gets paid
for gets done more. What gets paid a lot for
gets done a lot more.
95
5. Youth Grovel Before the Young!
96
Why focus on these late teens and
twenty-somethings? Because they are the first
young who are both in a position to change the
world, and are actually doing so. For the first
time in history, children are more comfortable,
knowledgeable and literate than their parents
about an innovation central to society. The
Internet has triggered the first industrial
revolution in history to be led by the
young.The Economist 12/2000
97
6. DiversityMess Rules!
98
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
99
7. WomenBorn to Lead!
100
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
101
The New Economy Shout goodbye to command and
control!Shout goodbye to hierarchy!Shout
goodbye to knowing ones place!
102
Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversitySource Judy B. Rosener, Americas
Competitive Secret
103
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
104
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
105
Its Girls, Stupid!1996 8.4M women, 6.7M men
in college (est 9.2 to 6.9 in 2007) more women
than men in high-level math and science
coursesMore girls in student govt., honor
societies girls read more books, outperform boys
in artistic and musical ability, study abroad in
higher numbersBoys do rule crime, alcohol,
drugs, failure to do homework (41)Source The
Atlantic Monthly (May2000)
106
Okay, you think Ive gone tooooo far. How about
this DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?
107
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
108
Encouraging signs CEO, HP. CEO, eBay. CEO, Avon.
CEO, Mirant. CEO, Xerox. President,
Pharmaceutical Group, Pfizer. President, Chevron
Products. Co-CEO, Kraft. President, PepsiCo. CEO,
Ogilvy Mather. COO, Enron Americas. COO,
Colgate-Palmolive. President, Southwest Airlines.
109
8. WeirdThe Cracked Ones Let in the Light!
110
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
111
Are there enough weird people in the lab these
days?V. Chmn., pharmaceutical house, to a lab
director (06.01)
112
9. OpportunityMake It an Adventure!
113
H.R. to H.E.D. ???Human
Enablement Department
114
Leaders-Teachers Do Not Transform People!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a
luxuriant portfolio of meaningful opportunities
(projects) which (3) allow people to fully (and
safely, mostlycaveat they dont engage unless
theyre mad about something) express their
innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams,
assisted by an extensive self-constructed
network) by which those people (5) go to-create
places they (and their mentors-teachers-leaders)
had never dreamed existedand then the
leaders-mentors-teachers (6) applaud like hell,
stage photo-ops, and ring the church bells 100
times to commemorate the bravery of their
followers explorations!
115
10. Leading GeniusWe are all unique!
116
Beware Lurking HR Types One size NEVER fits
all. One size fits one. Period.
117
48 Players 48 Projects 48 different success
measures
118
MantraM3Talent Brand
119
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
120
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
121
Brand InsideBrand Talent The Education Fiasco
122
Losing the War to Bismarck
123
My wife and I went to a kindergarten
parent-teacher conference and were informed that
our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in
art. We were shocked. How could any childlet
alone our childreceive a poor grade in art at
such a young age? His teacher informed us that he
had refused to color within the lines, which was
a state requirement for demonstrating
grade-level motor skills. Jordan Ayan, AHA!
124
How many artists are there in the room? Would
you please raise your hands. FIRST GRADE En mass
the children leapt from their seats, arms waving.
Every child was an artist. SECOND GRADE About
half the kids raised their hands, shoulder high,
no higher. The hands were still. THIRD GRADE At
best, 10 kids out of 30 would raise a hand,
tentatively, self-consciously. By the time I
reached SIXTH GRADE, no more than one or two kids
raised their hands, and then ever so slightly,
betraying a fear of being identified by the group
as a closet artist. The point is Every school
I visited was was participating in the
suppression of creative genius.Gordon
MacKenzie, Orbiting the Giant Hairball A
Corporate Fools Guide to Surviving with Grace
125
J. D. Rockefellers General Education Board
(1906) In our dreams people yield themselves
with perfect docility to our molding hands. The
task is simple. We will organize children and
teach them in a perfect way the things their
fathers and mothers are doing in an imperfect
way.John Taylor Gatto, A Different Kind of
Teacher
126
An Unnatural Way to Learn
127
Schools Kafka-like rituals enforce sensory
deprivation on classes of children held in
featureless rooms sort children into rigid
categories by the use of fantastic measures such
as age-grading, or standardized test scores
train children to drop whatever they are occupied
with and to move as a body from to room at the
sound of a bell, buzzer, horn, or klaxon keep
children under constant surveillance, depriving
them of private time and space John Taylor
Gatto, A Different Kind of Teacher
128
Kafka-like rituals (cont.) assign children
numbers constantly, feigning the ability to
discriminate qualities quantitatively insist
that every moment of time be filled with
low-level abstractions forbid children their
own discoveries, pretending to possess some vital
secret to which children must surrender their
active learning time to acquire.John Taylor
Gatto, A Different Kind of Teacher
129
Doing Stuff that Matters!
130
During the first years of life, youngsters all
over the world master a breathtaking array of
competences with little formal tutelage.
Howard Gardner, The Unschooled Mind
131
The Learners ManifestoThe brain is always
learning.Learning does not require
coercion.Learning must be meaningful.Learning
is incidental.Learning is collaborative.The
consequences of worthwhile learning are
obvious.Learning always involves
feelings.Learning must be free of risk.Frank
Smith, Insult to Intelligence
132
Toms Edu3M ManifestoManifesto for Education
in the 3rd Millennium
133
Education3MLearning is a normal state.Children
are learnavores.Prodigious feats of learning are
common as dirt. Watch an H.S. QB studying game
film.We learn at different rates.We learn in
different ways.Boys and girls learn very
differently.In a class of 25, there are 25
different trajectories.Learning in 40-minutes
blocks is bullshit.Learning for tests is utterly
insane.There are numerous rigorous evaluation
schemes, of which testing is but oneand
abnormal, by real world standards.
134
Education3MWe learn most/fastest/most
completely when we are passionate about what we
are learning and it matters to us. Salience
rules! Think EBI/LBI Education by
Interest/Learning by Internship.Classrooms are
abnormal places.We need changes of pace.
Japanese recesses between each
class.International test scores are not
correlated with hours-per-year in class.Big
classes are slightly problematic. Big schools
suck. Period.
135
Education3MAll thisthe right stufffits the
NWW/New World of Work hand-in-glove. NWW Age
of Creativity.U.S. schools circa 2001 are a
vestige of the Prussian-Fordist model, more
interested in shaping behavior than stoking the
fires of lifelong learning.Cutting art-music
budgets is truly dumb.Learning is a matter of
Intensity of Engagement, not elapsed time.
Aargh 11 minutes on the Battle of
Gettysburg.Teachers need enough
space-time-flexibility to get to know kids as
individuals.Scientific discovery processes and
the teaching of science are utterly at odds.
Exploration vs. spoon-feeding.
136
Education3MOur toughest learning
achievementmastering our native languagedoes
not require schools, or even competent parents.
It does require a desperate need-to-know.Great
teachers are great learners, not
imparters-of-knowledge.Great teachers ask great
questionsthat launch kids on lifelong
quests.The world is not about right wrong
answers it is about the pursuit of increasingly
sophisticated questionsjust ask a ski instructor
or neurosurgeon.
137
Education3MMost schools spend most of their
time setting up contexts in which kids learn not
to like particular subjects. Evidence shows that
such anti-learning sticks!Vigorous exploration
is normal until you are incarcerated in a
school.Bite size education-learning is neither
education nor learning.Learning takes place
rapidly on the cheerleading squad, the football
team, the school newspaper, the drama club, at
the after-class job--just not in the
hyper-structured classroom.
138
Education3MThe school reform movement is a
giant step backwards embracing the
Prussian-Fordist paradigm with renewed vigorat
exactly the wrong time.There are large numbers
of superb schools, superb principals, superb
teachers sadly, they not only fail to infect the
largely timid rest, but are ordinarily
supplanted by wusses wimps.Alas, the teaching
profession does not ordinarily attract cool
dudes dudettes.Schools of education should
by and large have their charters revoked.
139
Education3MStability is dead education must
therefore educate for an unknowable, ambiguous,
changing future thence, learning to learn
change is far more important than mastery of a
static body of facts. Education must
develop in youth the capabilities for engaging
in intense concentrated involvement in an
activity. James Coleman, 1974. Hint It
doesnt. Hint Understatement.
140
Brand InsideReprise THINK WEIRD The High
Standard Deviation Enterprise
141
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
142
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
143
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
144
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
145
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
146
Message TAKE SOMEONE NEW WEIRD TO LUNCH TODAY
OR TOMORROW. Inundate yourself with weird.
147
Insight 818a.m. Get better organized to do good
workvs.Get better disorganized to do great
work
148
Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
149
Forces _at_ Work IIThe Sameness Trap
150
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
151
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
152
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
153
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
154
10X/10X
155
Brand OutsideStrategy 1AUse E-Commerce to
Re-invent Everything!
156
Dells OptiPlex FacilityBig Job 6 to 8
hours.(20,000 per day)Parts Inventory 100
square feet. (Overall, 5 days vs. 50 to 90 days
target is 2.5 days)
157
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)
158
Secret Cisco Community!Customer Engineer
Chat Rooms/Collaborative Design (1B free
consulting) (45,000 customer problems a week
solved via customer collaboration)
159
WebWorld Everything Web as a way to run your
business 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
160
Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
161
Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
162
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
163
Theres no use trying, said Alice. One cant
believe impossible things. I daresay you
havent had much practice, said the Queen. When
I was your age, I always did it for half an hour
a day. Why, sometimes Ive believed as many as
six impossible things before breakfast.Lewis
Carroll
164
Inet allows you to dream dreams you could
never have dreamed before!
165
Brand OutsideStrategy 1BEmbracing an e-Led
Age of Self-Determination
166
Parents, doctors, stockbrokers, even military
leaders are starting to lose the authority they
once had. There are all these roles premised on
access to privileged information. What we are
witnessing is a collapse of that advantage,
prestige and authority.Michael Lewis, next
167
Impact 1 Healthcare
168
HealthCare2001Consumerism X Demographics X
IS/Internet X Info Consolidators X Genetics
Devices YIKES!
169
1. Consumerism (Patient-centric Healthcare)
170
A seismic shift is underway in healthcare. The
Internet is delivering vast knowledge and new
choices to consumersraising their expectations
and, in many cases, handing them the controls.
Healthcare consumers are driving radical,
fundamental change.Deloitte Research, Winning
the Loyalty of the eHealth Consumer
171
Consumer ImperativesChoiceControl (Self-care,
Self-management)Shared Medical
Decision-makingCustomer ServiceInformationBrand
ingSource Institute for the Future
172
Consumerism HMO backlash (e.g., plans with
more choice). Alternative Medicine, Wellness
Prevention. Info availability (disease, health,
docs, support groups, outcomes). Self-care
(chronic disease). High expectations (genetics,
etc.) Boomers (see below).
173
2. Demographics The BOOMERS Reach 55!
174
Boomer WorldFrom jogging to plastic surgery,
from vegetarian diets to Viagra, they are
fighting to preserve their youth and defy the
effects of gravity.M.W.C. Howgill, Healthcare
Consumerism, the Information Revolution and
Branding
175
Message Boomer (1) There are l-o-t-s of us.
(2) We have the . (3) Were/Im in
charge! (4) Well take no guff from from
anyone. (5) We know the emperor has no
clothes.
176
3. The IS/Web REVOLUTION
177
Were in the Internet age, and the average
patient cant email their doctor.Donald
Berwick, Harvard Med School
178
Without being disrespectful, I consider the U.S.
healthcare delivery system the largest cottage
industry in the world. There are virtually no
performance measurements and no standards. Trying
to measure performance is the next revolution
in healthcare.Richard Huber, former CEO, Aetna
179
As unsettling as the prevalence of inappropriate
care is the enormous amount of what can only be
called ignorant care. A surprising 85 of
everyday medical treatments have never been
scientifically validated. For instance, when
family practitioners in Washington were queried
about treating a simple urinary tract infection,
82 physicians came up with an extraordinary 137
strategies.Demanding Medical Excellence
Doctors and Accountability in the Information
Age, Michael Millenson
180
In health care, geography is destiny.Dartmouth
Medical School 1996 report, from Demanding
Medical Excellence Doctors and Accountability in
the Information Age, Michael Millenson
181
CDC 1998 90,000 killed and 2,000,000 injured
from nosocomial hospital-caused drug errors
infections
182
Practice variation is not caused by bad or
ignorant doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.Michael
Millenson, Demanding Medical Excellence
183
4. Information Consolidators The Network Maestros
184
WebMD (or heirs assigns)
185
5. Genetics Devices
186
Recognizing that a single misspelled gene means
the difference between being poisoned and being
cured was the first victory for the new science
of pharmacogenetics.Newsweek (06.25.01)
187
Pharmacogenomics could fundamentally change the
nature of drug discovery and marketing, rendering
obsolete the pharmaceutical industrys practice
of spending vast amounts of time and money to
craft a single medicine with mass-market
appeal.The Industry Standard (05.28.01)
188
There is no question in my mind that the future
of heart surgery is in robotics.Dr. Robert
Michler, OSU Med Center, upon the FDAs approval
of robotic partial-bypass surgery
189
Golden Age of Patient-centric, Genetics-driven
Healthcare Looms! Current status 1.3T. 70M
uninsured. 90K killed and 2M injured p.a. in
hospitals. 85 treatments unproven. Cure depends
on locale in which treated. 50 prescriptions
not work. 2X docs. 2X hospitals. IS primitive.
Accountability measurement nil. And everybodys
mad and feels powerless docs, patients, nurses,
insurers, employers, hospital administrators and
staff.
190
Message Embrace R R radical and rapid Change
or Become Historys Footnote
191
Brand OutsideStrategy 2AWomen Rule!
192
?????????Home Furnishings 94Vacations
92Houses 91Consumer Electronics 51 Cars
60 (90)All consumer purchases 83 Bank
Account 89Health Care 80
193
????80
194
Riding Lawnmowers
195
2/3rds working women/50 working wives gt
5080 checks61 bills53 stock (mutual fund
boom)43 gt 500K95 financial decisions/ 29
single handed
196
4.8T gt Japan9M/27.5M/3.6T gt Germany
197
New golfers 37Basketball 13.5M1 in 27
(70) 1 in 3 (96)
198
1874?
199
1874 Jock Strap1977 Jogbra1977 ...
25K1996 42M
200
Yeow!1970 12002 50
201
OPPORTUNITY NO. 1! No shit!
202
Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
203
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.
204
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!)
205
Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
206
It is obvious to a women 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
207
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
208
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
209
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
210
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
211
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
212
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
213
Women dont buy brands. They join
them.EVEolution
214
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
215
Not!!Year of the Woman
216
Enterprise Reinvention!RecruitingHiring/Rewardi
ng/PromotingStructure ProcessesMeasurementStra
tegyCulture VisionLeadershipTHE BRAND ITSELF!
217
Honey, are you sure you have the kind of money
it takes to be looking at a car like this?
218
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!
219
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 Alto resident THIS IS EVEN
BIGGER THAN THE INTERNET!Tom Peters
220
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
221
Ad from Furniture /Today (04.01)MEET WITH THE
EXPERTS! How Retailings Most Successful Stay
that WayPresenting Experts M 16F ??
(94 272)
222
0
223
Stupid!
224
Brand OutsideStrategy 2BWelcome to Old
World!
225
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
226
Subject Marketers StupidityIts 18-44,
stupid!
227
Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
228
2000-2010 Stats18-44 -155 21(55-64
47)
229
NOT ACTING THEIR AGE As Baby Boomers Zoom into
Retirement, Will America Ever Be the
Same?USNWR Cover/06.01
230
Member Growth 1987 199718 34 2635
49 6350 118Source IHRSA
231
Aging/ElderlyIm in charge!
232
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
233
Brand OutsideStrategy 2CWelcome to Green
World!
234
And 3 GREEN????? 50 to 36 Protect
Environment gt Economic Growth.58 to 34
Protect Plants Animals gt Preserve Private
Property Rights.
235
E.g. Genetically Altered FoodWould eat M,
71 F, 50Give to children M, 59 F,
37Pay more for non-altered M, 35 F,
47Source www.pulse.org USA Today
236
No Target MarketingYes Target Innovation
Target Delivery Systems
237
Brand OutsideStrategy 3ADesign Matters!
238
All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
239
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
240
Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
241
The I.D. International Design FortyAirstream
Alfred A. Knopf Apple Computer Amazon.com
Bloomberg Caterpillar CNN Disney FedEx
Gillette IBM Martha Stewart New Balance
Nickelodeon Patagonia The New York Yankees
3M Etc. List No. 1, 1999
242
Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
243
Design Transforms even the Biggest
Corporations!TARGET the champion of
Americas new design democracy (Time) Marketer
of the Year 2000 (Advertising Age)
244
Design is WHAT WHY I LOVE. LOVE.
245
I LOVE my ZYLISS Garlic Peeler!
246
Design is WHY I GET MAD. MAD.
247
Wanted THE DESIGNER OF MY RADIO SHACK PHONE.
Major Reward!
248
Design is never neutral.
249
Hypothesis DESIGN is the principal difference
between love and hate!
250
THE BASE CASE I am a design fanatic.
Personally, though not artistic, Im a
cool-stuff guy. I love what I love and I hate
what I hate. Openly. 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-experienc
e stands out or doesnt. Furthermore, its one
of those things that damn few companies put
consistently on the front burner.
251
Brand OutsideStrategy 3BIts the Experience!
252
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
253
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
254
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
255
The Experience LadderExperiences
ServicesGoods Raw Materials
256
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
257
Message Experience is the Last 80P.S.
Experience applies to all work!
258
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
259
Brand OutsideStrategy 4BRAND POWER!
260
WHO ARE YOU these days ?TP to Client
261
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
262
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
263
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!
264
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
265
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
266
WHO ARE WE?
267
WHATS OUR STORY?
268
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
269
WHY DOES IT MATTER TO THE CLIENT?
270
EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DIFFERENCE TO THE CLIENT
271
Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
272
The Leadership50Leading in Totally Screwed Up
Times
273
The Leadership50
274
1. Leaders Cede Control.
275
I dont know.
276
1A. Leadership Is a Mutual Discovery Process.
277
I am inalterably opposed to organization
change, empowerment, motivation. The goal
to awaken the latent talent already within, by
providing opportunities worthy of the
individuals investment of her or his most
precious resources time and emotional
commitment.
278
Ninety percent of what we call management
consists of stuff that make it difficult for
people to get things done. P.D. My goal is
not to motivate them. Its to not de-motivate
em. N.D. fball coach
279
2. Great Leaders on Snorting Steeds Are Important
but Great Managers/Talent Developers (Type I
Leadership) are the Bedrock of Organizations that
Perform Over the Long Haul.
280
Whoops Jack didnt have a vision!
281
Model24/7 Sports Franchise GM
282
2A. Just One Great Leading Great Mentoring.
283
Goal of the Year No. 1 Find-Develop-Mentor ONE
Extraordinary Person.CEO, large financial
advisory firm, April 2001
284
3. But Then Again, There Are Times When This
Cult of Personality (Type II Leadership) Stuff
Actually Works!
285
A leader is a dealer in hope.Napoleon
286
4. Find the Businesspeople! (Type III
Leadership)
287
I.P.M. (Inspired Profit Mechanic)
288
4A. All Organizations Need the Golden Leadership
Triangle.
289
The Golden Leadership Triangle (1)
Creator-Inventor-Visionary (2) Talent Fanatic
(3) Inspired Profit Mechanic.
290
Project Team Golden Triangle(1)
Champion-Maniac. (2) Implementer-Pol. (3)
Schedule Budgets Fanatic.
291
5. Leadership Mantra 1 IT ALL DEPENDS!
292
Renaissance Men are a snare, a myth, a delusion!
293
6. The Leader Is Rarely/Never the Best Performer.
294
33 Division Titles. 26 League Pennants. 14 World
Series Earl Weaver0. Tom Kelly0. Jim
Leyland0. Walter Alston1AB. Tony LaRussa132
games, 6 seasons. Tommy LasordaP, 26 games.
Sparky Anderson1 season.
295
7. Leaders LOVE the MESS!
296
If things seem under control, youre just not
going fast enough.Mario Andretti
297
7A. Leadership Is Improv!
298
Duct Tape Rules!Andrew Higgins, who built
landing craft in WWII, refused to hire graduates
of engineering schools. He believed that they
only teach you what you cant do in engineering
school. He started off with 20 employees, and by
trhe middle of the war had 30,000 working for
him. He turned out 20,000 landing craft. D.D.
Eisenhower told me, Andrew Higgins won the war
for us. He did it without engineers. Stephen
Ambrose/Fast Company
299
8. Leaders DO!
300
The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
301
8A. Leaders Re-do.
302
Sony Electronics has a well-earned reputation
for persistence. The companys first entry into a
new field often isnt very good. But, as it has
shown in laptops, Sony will keep trying until it
gets it right.Business Week (5/01)
303
If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something