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Title: Why%20Are%20We%20Here?%20Tom%20Peters/%20spbt/%20Toronto/%2006.17.2002


1
Why Are We Here?Tom Peters/ spbt/ Toronto/
06.17.2002
2
Q Why are we here?A/TP I am increasingly
unclear.
3
All Slides Available at tompeters.comNote
Lavender text in this file is a link.
4
Brown.
5
Nardellis goal (50B to 100B by 2005)
move Home Depot beyond selling goods to selling
home services. He wants to capture home
improvement dollars wherever and however they are
spent. E.g. house calls (At-Home Service
10B by 05?) pros shops (Pro Set) home
project management (Project Management System
a deeper selling relationship).Source USA
Today/06.14.2002
6
One persons opinion
7
Sorry, Elliott/spbt the issue is not the
delivery of training. The issue is training for
WHAT!
8
Issue 1NOT How to do what we do
better.IS What the hell should we be
doing?I am convinced that both your content
and field processes are all screwed up.
9
From We are pill peddlers. To We are
providers of Integrated, demonstrable health-
wellness-enhancing outcomes in partnership
with CMOs, HMOs, state AGs Govs, Patients,
docs of which pills may or may not be a/the
central part.
10
E.g. Should we abolish drug co. salesforces?
And replace them with Integrated Marketing
Services/ Solutions Teams that (1) focus on
outcomes, (2) include sales, marketing, drug
discovery process teams, and various outsiders?
11
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
12
The Future of Healthcare Whoops I
13
Golden Age of Patient-centric, Genetics-driven
Healthcare Looms! Current status 1.3T.
30M-70M uninsured. 90K killed and 2M injured p.a.
in hospitals. 85 treatments unproven. Cure
depends on locale in which treated. 50
prescriptions do not work. 2X docs. 2X hospitals.
IS primitive. Accountability measurement nil.
And everybodys mad and feels powerless docs,
patients, nurses, insurers, employers, pharma
device cos, hospital administrators and staff.
14
The Future of Reps Whoops II
15
Consultative selling requires dialogue and the
time for that dialogue. Unfortunately, this
seldom happens in todays hurry-up complex world
of pharmaceutical selling.newspost/spbt
16
Study of 500 Reps 65 had face-to-face
conversation with the physician for less than 30
seconds per visit. In fact, more than half of the
65 admitted that the average time is less than
15 seconds.Holy shit!Source newspost
17
Research reveals no evidence of overall superior
selling behavior related to experience beyond
five years. Quite the opposite newspost/spbt
18
TP/06.2002 So, tell me about reps
19
Pediatric cardiologist practice head I dont
see them, period. I study, write papers, use the
Web, attend a minimum of 4 or 5 major conferences
a year. My staff may see them, but I in general
find their views uselessly prejudiced. Call it,
Im afraid to say, hucksterism. If I want
anything at all from them, its
thoughtfulnessgood luck!
20
Urologist Practice Head A few of thema very
feware excellent. The good ones are
self-deprecating. If their product is not all
that great, theyll admit it. Mostly, its a
waste of my time. I let the staff handle it.
21
Family Practice Office Administrator (3
Docs, Midsize town)TP How often does Dr. X
see Reps?PA He doesnt. Emphatic.TP
That was sharp in tone! Why?PA We used to
set aside a two-hour block, once a month. But a
lot of the Reps missed appointments. That,
however, was the least of it. The biggest
problems were the Reps who kept pushing the same
thing, visit after visit. They had absolutely
nothing new to say.TP So how does Doc X keep
up?PA The Internet. T.O.V. What else?
22
Internist (Silicon Valley) The Web is generally
better. I spent a year of painstaking study, and
now I have a system that keeps me informed in a
push fashion. I began as a skeptic, harassed by
a few of my techie patientsand Ive become a
believer and proselytizer. Now I find myself
haranguing other doctors.
23
Oncologist (Urban Med Center) They are, or can
be, helpful to the two-thirds of docs, to be
frank, who dont study much. Ive got one or two
Ill call, but otherwise Im not available.
Quiet study, and increasingly the Internet, are
my tools of renewal.
24
Pharmaceutical exec Truthfully, we hire
attractive women as much as we can get away with.
That plus pens are huge influencersits what our
focus groups tell us. (The attractive young
women theme was a constant refrain. I find it
laughable, to a point, a female M.D. told me.
What I fear is that it works.)
25
ER doc/exec Its pathetic. The docs are half
assed in their learning styles. Most dont even
pretend they are keeping up. Reps? She who has
the best pens wins. Health care is out of
controland laughably unscientific. Whatever your
nightmare stories are, Tom, trust me and my 25
years of experience, the reality is far worse.
26
Plastic surgeon practice head My practice has
changed 100 in the last 10 years. Sadly, thats
not true for three-quarters of my colleagues.
Information technology is a big part of it. Its
extremely user-unfriendly. It took me and my
partners and office staff a year to customize our
approachand as we did so the role of the reps
became less and less important. I wont even let
our staff schedule time with them. Its
inefficient, and most of them are humorously
biasedand insult us by imagining its not
transparent. Im not complainingbut,fact is, Im
busy.
27
My voyage (1) Hey, Ill do TPs eLearning
pitch. (Not as good as Masies.) (2) Why do
docs waste time with reps? Isnt the Web the
answer? (A Docs dont waste time/much time with
reps.) (3) Hey, the fundamental concept of the
selling relationship may be all bollixed up.
(Hmmmmm )
28
Health Care Embraces Modern IT and Management
Practice Maybe.
29
Any Idiots Conclusion The System Is Busted.
(And You are part of the system not spectators
from the priviledged drug co.s)
30
Were in the Internet age, and the average
patient cant email their doctor.Donald
Berwick, Harvard Med School
31
Want email consultation 90 patients, 15
docs. Evidence Patients do not pester docs.
Time is saved. No one has sued (shows care
connectionthe absence of which is the major
cause of suits).Source New York Times/06.06.02
32
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
33
A healthcare delivery system characterized by
idiosyncratic and often ill-informed judgments
must be restructured according to evidence-based
medical practice.Demanding Medical Excellence
Doctors and Accountability in the Information
Age, Michael Millenson
34
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
35
Quality of care is the problem, not managed
care.Institute of Medicine (from Michael
Millenson, Demanding Medical Excellence)
36
RAND(1998) 50, appropriate preventive care.
60, recommended treatment, per medical studies,
for chronic conditions. 20, chronic care
treatment that is wrong. 30 acute care treatment
that is wrong.
37
CDC 1998 90,000 killed and 2,000,000 injured
from nosocomial hospital-caused drug errors
infections
38
1,000,000 serious medication errors per year
illegible handwriting, misplaced decimal points,
and missed drug interactions and
allergies.Source Wall Street Journal/
Institute of Medicine
39
Various studies 1 in 3, 1 in 5, 1 in 7, 1 in 20
patients harmed by treatment Demanding
Medical Excellence Doctors and Accountability
in the Information Age, Michael Millenson
40
RAND (1998) 50, appropriate preventive care.
60, recommended treatment, per medical studies,
for chronic conditions. 20, chronic care
treatment that is wrong. 30 acute care treatment
that is wrong.
41
YE GADS! New England Journal of Medicine/
Harvard Medical Practice Study 4 error rate (1
of 4 negligence). Subsequent investigations
around the country have confirmed the ubiquity of
error. In one small study of how clinicians
perform when patients have a sudden cardiac
arrest, 27 of 30 clinicians made an error in
using the defibrillator. Mistakes in
administering drugs (1995 study) average once
every hospital admission. Lucian Leape,
medicines leading expert on error, points out
that many other industrieswhether the task is
manufacturing semiconductors or serving customers
at the Ritz Carltonsimply wouldnt countenance
error rates like those in hospitals.Complication
s, Atul Gawande
42
Established state-of-the-art cancer careabout
which there is no longer any debateis
erratically applied.Source Institute of
Medicines National Cancer Policy Board
43
In a disturbing 1991 study, 110 nurses of
varying experience levels took a written test of
their ability to calculate medication doses.
Eight out of 10 made calculation mistakes at
least 10 of the time, while four out of 10 made
mistakes 30 of the time.Demanding Medical
Excellence Doctors and Accountability in the
Information Age, Michael Millenson
44
In health care, geography is destiny.Dartmouth
Medical School 1996 report, from Demanding
Medical Excellence Doctors and Accountability in
the Information Age, Michael Millenson
45
Geography Is DestinyE.g. Ft. Myers 4X
Manhattanback surgery. Newark 2X New
Havenprostatectomy. Rapid City SD 34X Elyria
OHbreast-conserving surgery. VT, ME, IA 3X
differences in hysterectomy by age 70 8X
tonsillectomy 4X prostatectomy (10X Baton Rouge
vs. Binghampton). Breast cancer screening 4X NE,
FL, MI vs. SE, SW. (Source various)
46
Geography Is DestinyOften all one must do to
acquire a disease is to enter a country where a
disease is recognizedleaving the country will
either cure the malady or turn it into something
else. Blood pressure considered treatably high
in the United States might be considered normal
in England and the low blood pressure treated
with 85 drugs as well as hydrotherapy and spa
treatments in Germany would entitle its sufferer
to lower life insurance rates in the United
States. Lynn Payer, Medicine Culture
47
Its (measurable, systemic) outcomes, stupid!
48
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
49
Leapfrog Group/med errors Not since Jackson
Hole Group guru Paul Ellwood, Jr., M.D., coined
the term HMO in 1970 has one idea so fully
captured the imagination of the healthcare
industry.HealthLeaders/06.2002
50
Leapfrog Group
CPOE/Computerized Physician Order
EntryICU staffing by trained
intensivistsEHR/Evidence-based Hospital
ReferralDuh I Welcome to the computer
age.Duh II How about using experts?Duh
III If you do stuff a lotta times, you tend to
get/be better.
Source HealthLeaders/06.2002
51
Empire Blue Cross and Blue Shield 4 quarterly
bonus for hospitals that meet Leapfrogs CPOE and
ICU-staffing standards.Source
HealthLeaders/06.2002
52
The Benefits of FOCUSED EXCELLENCE
Shouldice/Hernia Repair 30-45 min, 1
recurrence. Avg 90 min, 10-15
recurrence.Source Complications, Atul Gawande
53
The VHA gets it! E.g. Laptop at bedside calls
up patient e-records from one of 1,300 hospitals.
Bar-coded wristband confirms meds. National
Center for Patient Safety in Ann Arbor. Docs
and researchers discuss optimal treatment
regimensresearch center in Durham NC. Doc
measures guidelines e.g., pneumonia
vaccinations from 50 to 84. Blame-free
system, modeled after airlines. Whats needed
in the U.S. is nothing short of a medical
revolution and the VHA has gone further than most
any other organization to revamp its culture and
systems.Rand/SourceWSJ 12.10.2001
54
Computerized Physician Order Entry/CPOE 5 of
U.S. hospitalssource HealthLeaders/06.02
55
Winning By Acknowledging FailuresWernher Von
Braun, the Redstone missile engineer who
confessed the bottle of champagne. Award to
the sailor on the Carl Vinsonfor reporting the
lost tool. Amy Edmonson the successful nursing
units with the highest reported adverse drug
events.Source Karl Weick Kathleen Sutcliffe,
Managing the Unexpected
56
PARADOX Many, many formal case reviews failure
to systematically/ systemically/ statistically
look at and act on evidence.C.f.,
Complications, Atul Gawande
57
Message (1) Effective encompassing use of IT
is the healthcare revolution. (2) Get on
all-the-way on board or get discarded. (3) The
situation as it stands is pathetic.
58
Whose motto We hate change!Choices AMA,
AHA. Both
59
Toms World
60
NEW BUSINESS. NEW CONTEXT.
61
All Bets Are Off.
62
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
63
Way to Go, Guys 2002 write downs from recent
acquisitions
64
1,000,000,000,0001 trillion (Source
Harpers Index 04.2002)
65
The Destruction Imperative.
66
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
67
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
68
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
69
When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank.Mark Sirower, The Synergy Trap
70
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
71
The New Ge WayDYB.com
72
Change the rules before somebody else does.
Ralph Seferian, VP, Oracle
73
Most of our predictions are based on very linear
thinking. Thats why they will most likely be
wrong.Vinod Khosla, in GIGATRENDS, Wired
04.01
74
Axiom (Hypothesis) We have been screwed by
Benchmarking Best Practice C.I./Kaizen.
Axiom (Hypothesis) We need Masters of
Discontinuity/ Masters of Ambiguity in
discontinuous/ambiguous times.
75
BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS.
Most drugs dont work well for about half the
patients for whom they are prescribed, and
experts believe genetic differences are part of
the reason. The technology for genetic testing is
now in use. But the technique threatens to be so
disruptive to the business of big drug companies
it could limit the market for some of their
blockbuster products that many of them are
resisting its widespread use.The Wall Street
Journal (06.18.2001)
76
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)
77
Pharmacogenomics End of Blockbusters by
End-of-Decade (Reuters/5-22)Barrie James,
Pharma Strategy Consulting Were moving from a
blunderbuss approach to laser-guided munitions,
and it marks a sea change for the industry. The
implications for existing business models are
devastating. Allen Roses, SVP Genetic
Research, GlaxoSmithKline minibuster. Rob
Arnold, Euro head of life sciences, PWC Once
you start dealing with minority treatments, small
biotechs who are more nimble and dont need
500-million-a-year drugs to make money could be
at a real advantage.
78
NEW BUSINESS NEW TECH
79
IBMs Project eLiza! Self-bootstrapping/
Artilects
80
Deep Blue Redux 2,240 EKGs 1,120 heart
attacks. Hans Ohlin (50 yr old chief of coronary
care, Univ of Lund/SW) 620. Lars Edenbrandts
software 738.Only this time it matters!
81
Most physicians believe that diagnosis cant be
reduced to a set of generalizationsto a
cookbook. How often does my intuition lead me
astray? The radical implication of the Swedish
study is that the individualized, intuitive
approach that lies at the center of modern
medicine is flawedit causes more mistakes than
it prevents. Atul Gawande, Complications
82
Unless mankind redesigns itself by changing our
DNA through altering our genetic makeup,
computer-generated robots will take over the
world. Stephen Hawking, in the German magazine
Focus
83
IS/IT/Web On the Bus or Off the Bus.
84
100 square feet
85
Impact No. 1/ Logistics Distribution
WalMart Dell Amazon.com Autobytel.com
FedEx UPS Ryder Cisco Etc. Etc. Ad
Infinitum.
86
Autobytel 400. WalMart 13.Source
BW(05.13.2002)
87
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
88
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
89
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
90
Inet allows you to dream dreams you could
never have dreamed before!
91
HUMANAs Dreams. Emphesys Put everything on the
Internet. CEO Mike McCallister, charge to
200-person outside Inet unit Imagine an
ideal Web-based health insurance system and then
create a product as close as possible to that
vision. Start with own employees SmartSuite.
Member employees Plan their own coverage and
shoulder more costs. Dell is model Fully
customized health for every individual.
Marketing pitch for employers Buy choice for
employees through a single sourceHumana.Source
Fortune/05.27.2002
92
Supposejust supposethat the Web is a new world
were just beginning to inhabit. Were like the
earlier European settlers in the United States,
living on the edge of the forest. We dont know
whats there and we dont know exactly what we
need to do to find out Do we pack mountain
climbing gear, desert wear, canoes, or all three?
Of course while the settlers may not have known
what the geography of the New World was going to
be, they at least knew that there was a
geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It
has nothing natural in it. It has few rules of
behavior and fewer lines of authority. Common
sense doesnt hold here, and uncommon sense
hasnt yet emerged. David Weinberger, Small
Pieces Loosely Joined
93
Case CRM
94
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
95
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
96
The Web enables total transparency. People with
access to relevant information are beginning to
challenge any type of authority. The stupid,
loyal and humble customer, employee, patient or
citizen is dead.Kjell Nordström and Jonas
Ridderstråle, Funky Business
97
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
98
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
99
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
100
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.
101
We expect consumers to move into a position of
dominance in the early years of the new
century.Dean Coddington, Elizabeth Fischer,
Keith Moore Richard Clarke, Beyond Managed Care
102
Todays Healthcare Consumer skeptical and
demandingSource Ian Morrison, Healthcare in
the New Millennium
103
Medical care has traditionally followed a
professional model, based on two assumptions
that patients are unable to become sufficiently
informed about their own care to allow them a
pivotal role, and that medical judgments are
based on science.Joseph Blumstein, Vanderbilt
Law School
104
He shook me up. He put his hand on my shoulder,
and simply said, Old friend, you have got to
take charge of your own medical care.
Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal, following
Jordans cancer diagnosis)
105
Consumer ImperativesChoiceControl (Self-care,
Self-management)Shared Medical
Decision-makingCustomer ServiceInformationBrand
ingSource Institute for the Future
106
E-consumers want knowledgeare already
connectedwant conveniencewant it to be all
about themwant control.Douglas Goldstein,
e-Healthcare
107
Savior for the Sickvs. Partner for Good
Health Source NPR/VPR 08.15.00
108
No one currently owns the eHealth Consumer.
Its an open playing field.Deloitte Research,
Winning the Loyalty of the eHealth Consumer
109
We find that eHealth consumers are willing to
payand even switch health plansfor the services
they most want.Deloitte Research, Winning the
Loyalty of the eHealth Consumer
110
The curative model narrowly focuses on the
goal of cure. From many quarters comes evidence
that the view of health should be expanded to
encompass mental, social and spiritual
well-being. Institute for the Future
111
Internet User, F4163,000 HHI64 work FT54
moms6 hours/week onlineSource NetSmart
Research
112
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
113
CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
114
CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
115
Wells Fargo (285B) Master of BC900M since
99. 3M. 1/3rd of chk acct customers on line.
5,400 branches 4 of 5 who do product research
on line purchase at branch. Wire transfer, save
30 17 less calls. Material diff to bottom
line.Source BW Online (03.20.02)
116
Problem 1 The left hand doesnt talk to the
right hand.And there is no Problem 2.
117
The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez René
Tissen, Zero Space Moving Beyond Organization
Limits.
118
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)
119
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
120
PG, Unilever and Others Are Trying an
Experiment Giving Marketing More Say Over
ResearchAdvertising Age (03.25.2002)Duh.
121
NEW BUSINESS. NEW VALUE PROPOSITION.
122
The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
123
Base Case The Sameness Trap
124
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
125
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 Nordström
and Jonas Ridderstråle, Funky Business
126
The Big Day!
127
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
128
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
129
Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
130
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
131
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
132
Keep In Mind Customer Satisfaction versus
Customer Success
133
Was Big Iron Transformer Dudes Division. Is
Air Traffic Controllers of Electrons.
134
Was Bunch of Guys Who Make Circuit Breakers
Division. Is GE Industrial Systems.
135
Nardellis goal (50B to 100B by 2005)
move Home Depot beyond selling goods to selling
home services. He wants to capture home
improvement dollars wherever and however they are
spent. E.g. house calls (At-Home Service
10B by 05?) pros shops (Pro Set) home
project management (Project Management System
a deeper selling relationship).Source USA
Today/06.14.2002
136
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)
137
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
138
Our mission is to go from being the worlds
premier timesharewhich is a large idea in a
small industryto being what we call the market
makers for global travel and leisure. We need to
enable developers to be involved in more travel
and leisure products, rather than just the
timeshare side.Ken May, RCI (Source
Developments)
139
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)
140
Architecture is becoming a commodity. Winners
will be Turnkey Facilities Management
providers.SMPS Exec
141
We are a real estate facilities consulting
organization, not just an interior design
firm.Jean Bellas, founder, SPACE (from SMPS
Marketer)
142
Omnicom 57 (of 6B) from marketing services
143
NEW BUSINESS. NEW BRAND.
144
A World of Experiences.
145
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
146
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
147
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
148
Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
149
Guinness as a brand is all about community. Its
about bringing people together and sharing
stories.Ralph Ardill, Imagination, in re
Guinness Storehouse
150
Brown.
151
The Experience LadderExperiences
ServicesGoods Raw Materials
152
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
153
Message Experience is the Last 80P.S.
Experience applies to all work!
154
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
155
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
156
Its All About EXPERIENCES Trapper to
Wildlife Damage-control ProfessionalTrapper
lt20 per beaver pelt.WDCP 150/problem
beaver 750-1,000 for flood-control piping
so that beavers can stay.Source
WSJ/05.21.2002
157
The Experience LadderExperiences
ServicesGoods Raw Materials
158
Ladder Position MeasureSolutions
Success(Experiences)Services
SatisfactionGoods Six-sigma
159
It all adds up to THE BRAND.
160
The Heart of Branding
161
WHO ARE WE?
162
Most companies tend to equate branding with the
companys marketing. Design a new marketing
campaign and, voilà, 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
163
WHATS OUR STORY?
164
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
165
Apple opposes, IBM solves, Nike exhorts, Virgin
enlightens, Sony dreams, Benetton protests.
Brands are not nouns but verbs.Source
Jean-Marie Dru, Disruption
166
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
167
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
168
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
169
They consumer goods company have acquired a
bunch of products, which is what everyone is
doing. But whats the point, the message, the
story line, the Big Idea that makes it all hang
together? Exec, major consumer goods company
170
You do not merely want to be the best of the
best. You want to be considered the only ones who
do what you do.Jerry Garcia
171
Brand You Must Care!Success means never
letting the competition define you. Instead you
have to define yourself based on a point of view
you care deeply about. Tom Chappell, Toms of
Maine
172
WHY DOES IT MATTER TO THE CLIENT?
173
EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
174
Branding Is-Is Not TableTNT is not
TNT is TNT is notJuvenile
Contemporary Old-fashionedMindless
Meaningful ElitistPredictable
Suspenseful DullFrivolous
Exciting SlowSuperficial
Powerful Self-important
175
NEW BUSINESS. NEW WORK.
176
The WOW Project.
177
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
178
Lets make a dent in the universe.
Steve Jobs
179
WOW Projects for the Powerless.
180
Topic Boss-free Implementation of STM /Stuff
That MATTERS!
181
Worlds Biggest Waste Selling Up
182
THE IDEA Model F4 Find a Fellow Freak Faraway
183
F2F!/K2K!/1_at_T/R.F!A.Freak to
Freak/ Kook to Kook/ One at a Time/
Ready.Fire!Aim.
184
BOTTOM LINEThe Enemy!
185
Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
186
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
187
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
188
WHO WILL GO TO STOCKHOLM? (Damn it.)
189
Nobody gives you power. You just take
it.Roseanne
190
The Sales25.
191
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.)
192
Its politics, stupid! (Play or sit on the
sidelines.)
193
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.)
194
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.)
195
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
Tomorrow land.
196
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!
197
The deepest human need is the need to be
appreciated.William James
198
The two most powerful things in existence a
kind word and a thoughtful gesture.Ken
Langone, CEO, Invemed Associates from Ronna
Lichtenberg, Its Not Business, Its Personal
199
Thank you17 Men 84 Women 19
200
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
201
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
202
Women speak and hear a language of connection
and intimacy, and men speak and hear a language
of status and independence. Men communicate to
obtain information, establish their status, and
show independence. Women communicate to create
relationships, encourage interaction, and
exchange feelings.Judy Rosener, Americas
Competitive Secret
203
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!
204
NEW BUSINESS. NEW YOU.
205
Re-inventing the Individual BRAND YOU. (Or
Else.)
206
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
207
Minimum New Work SurvivalSkillsKit2002MasteryRo
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
208
Sams Secret 1!
209
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
210
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)
211
Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is
the No. 1 industry in the next 30 years mostly
on line.Peter Drucker,Business 2.0
(22August2000)
212
26.3
213
3 Weeks in MayTraining Prep 187Work
41(Other 17)
214
1 vs. 367
215
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?
216
Invent. Reinvent. Repeat.Source HP banner ad
217
Boss Work The Talent Imperative.
218
Brand Talent.Duh.
219
Model 25/8/53 Sports Franchise GM
220
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
221
Visibly energetic/ Passionate/ Enthusiastic
about everything.Engaging/ Inspires
others. (Inspires the interviewer!)Loves
messes pressure. Impatient/ Action fanatic.A
finisher.Exhibits Fat WOW Project Portfolio.
(Loves to talk about her
work.)Smart.Curious/ Eclectic interests/ A
little (or more) weird.Well-developed sense of
humor/ Fun to be around. No. 1 re
bosses Exceptional talent selection
development record. (Former co-workers
Did you visibly grow while working with
X? / How has the department/team grown
on a world-class scale during Xs tenure?)
222
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
223
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
224
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
225
Where do good new ideas come from? Thats
simple! From differences. Creativity comes from
unlikely juxtapositions. The best way to maximize
differences is to mix ages, cultures and
disciplines.Nicholas Negroponte
226
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
227
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
228
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
diversity.Source Judy B. Rosener, Americas
Competitive Secret
229
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
230
Are there enough weird people in the lab these
days?V. Chmn., pharmaceutical house, to a lab
director (06.01)
231
MantraM3Talent Brand
232
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
233
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
234
H.R. to H.E.D. ???Human
Enablement Department
235
I dont know.
236
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!
237
THINK WEIRD the H.V.A. Bedrock.
238
THINK WEIRD The High Standard Deviation
Enterprise.
239
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
240
Problem 1 Corporate consciousness is
predictably centered around the mainstream. The
best customers, biggest competitors, and model
employees are almost invariably the focus of
attention.Wayne Burkan, Wide Angle Vision
Beat the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
241
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
242
The future has already happened. Its just not
evenly distributed.Adrian Slywotzky
243
W.I.W?20 of 267 of top 10
244
PG Declining domestic sales in 20 of 26
categories 7 of top 10 categories. (The
billion-dollar problem.)Source Advertising
Age 01.21.2002/BofA Securities
245
Primary Obstacles to Marketing-driven
Change1. Fear of cannibalism.2. Excessive
cult of the consumer/ customer driven/
slavery to demographics, market research and
focus groups.3.Creating sustainable
advantage. Source
John-Marie Dru, Disruption
246
Account planning has become focus group
balloting.Lee Clow
247
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
248
BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS.
Most drugs dont work well for about half the
patients for whom they are prescribed, and
experts believe genetic differences are part of
the reason. The technology for genetic testing is
now in use. But the technique threatens to be so
disruptive to the business of big drug companies
it could limit the market for some of their
blockbuster products that many of them are
resisting its widespread use.The Wall Street
Journal (06.18.2001)
249
Generally, disruptive technologies underperform
established products in mainstream markets. But
they have other features that a few fringe (and
generally new) customers value.Clayton
Christensen, The Innovators Dilemma
250
Sony is the epitome of discontinuity. It sees
all its competitors accomplishments merely as
conventions to be overturned.Source
Jean-Marie Dru, Disruption
251
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
252
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
253
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
254
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.
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