Tom Peters

1
Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeSouth Africa/18August2003
2
Slides at tompeters.com
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It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public from the Foreword, Re-imagine
4
I. NEW BUSINESS. NEW CONTEXT.
5
Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff, U.
S. Army
6
You must become an ignorant man againAnd see the
sun again with an ignorant eyeAnd see it clearly
in the idea of it. --Wallace
Stevens/Notes Toward a Supreme Fiction
7
1. The Destruction Imperative.
8
The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically.Peter Drucker,
Business 2.0 (08.00)
9
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
10
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
11
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
12
The difficulties arise from the inherent
conflict between the need to control existing
operations and the need to create the kind of
environment that will permit new ideas to
flourishand old ones to die a timely death. We
believe that most corporations will find it
impossible to match or outperform the market
without abandoning the assumption of continuity.
The current apocalypsethe transition from a
state of continuity to state of discontinuityHas
the same suddenness as the trauma that beset
civilization in 1000 A.D. Richard Foster
Sarah Kaplan, Creative Destruction (The
McKinsey Quarterly)
13
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
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MERGERS Why Most Big Deals Dont Pay Off. A
BusinessWeek analysis shows that 61 of buyers
destroyed shareholder wealth. BusinessWeek/10.14
.2002
15
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
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The Three Levels of InnovationTransformational
SubstantialIncrementalSource Dick Foster,
Business 2.0 (05.01) Note Each level requires
totally different processes!
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II. NEW BUSINESS. NEW TECH.
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2. The White Collar Revolution the Death of
Bureaucracy.
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E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
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IBMs Project eLiza! Self-bootstrapping/
Artilects
22
BW Cover/02.2003IS YOUR JOB NEXT? A New Round
of GLOBALIZATION Is Sending Upscale Jobs
Offshore. They Include Chip Design, Basic
Researcheven Financial Analysis. Can America
Lose These Jobs and Still Prosper?
23
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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The virtual corporation is research,
development, design, marketing, financing, legal,
and other headquarters functions wth few or no
manufacturing capabilities a company with a
head but no body.Richard Rosecrance, The Rise
of the Virtual State
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Ford Vehicle brand owner (design, engineer,
and market, but not actually make)Source The
Company, John Micklethwait Adrian Woolridge
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3. IS/ IT/ Web On the Bus or Off the Bus.
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100 square feet
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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 Organizational
Limits.
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Dawn Meyerreicks, CTO of the Defense Information
Systems Agency, made one of the most fateful
military calls of the 21st century. After 9/11
her office quickly leased all the available
transponders covering Central Asia. The
implications should change everything about U.S.
military thinking in the years ahead. The U.S.
Air Force had kicked off its fight against the
Taliban with an ineffective bombing campaign, and
Washington was anguishing over whether to send in
a few Army divisions. Donald Rumsfeld told Gen.
Tommy Franks to give the initiative to 250
Special Forces already on the ground. They used
satellite phones, Predator surveillance drones,
and GPS- and laser-based targeting systems to
make the air strikes brutally effective.In
effect, they Napsterized the battlefield by
cutting out the middlemen (much of the militarys
command and control) and working directly with
the real players. The data came in so fast that
HQ revised operating procedures to allow
intelligence analysts and attack planners to work
directly together. Their favorite tool,
incidentally, was instant messaging over a secure
network.Ned Desmond/Broadbands New Killer
App/Business 2.0/ OCT2002
30
A Big Electronics Show Is All About Connections
headline, New York Times/ 01.13.2003/ Consumer
Electronics Show gt COMDEX
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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
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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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
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Case CRM
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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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
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CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
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No! No! No! FT The aim of CRM is to make
customers feel as they did in the pre-electronic
age when service was more personal.
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CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
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Here We Go Again Except Its Real This
Time!Bank online 24.3M (10.2002) 2X
Y2000.Wells Fargo 1/3rd 3.3M 50 lower
attrition rate 50 higher growth in balances
than off-line more likely to cross-purchase
happier and stay with the bank much
longer.Source The Wall Street
Journal/10.21.2002
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III. NEW BUSINESS. NEW VALUE PROPOSITION.
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4. The PSF SolutionThe Professional Service
Firm Model.
43
Sarah Daddy, what do you do?Daddy Im a
cost center, honey.
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Bobby Daddy, what do you do?Daddy Im
what they call overhead, son.
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So what will be the Basic Building Block of the
New Org?
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Every job done in W.C.W. is also done outside
for profit!
47
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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TP to HRMAC You are the Rock Stars of the
Age of Talent!
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DD21M
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eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
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Model PSF
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(1) Translate ALL departmental
activities into discrete W.W.P.F.
Products.(2) 100 go on the Web.(3)
Non-awesome are outsourced (75??).(4)
Remaining Centers of Excellence are
retained leveraged to the hilt!
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Typically in a mortgage company or financial
services company, risk management is an
overhead, not a revenue center. Weve become more
than that. We pay for ourselves, and we actually
make money for the company.Frank Eichorn,
Director of Credit Risk Data Management Group,
Wells Fargo Home Mortgage (Source sas.com)
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5. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
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Base Case The Sameness Trap
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While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
57
When McDonalds first started exporting its
formula of quality, cleanliness and service, it
was something of a novelty. These days,
quality, cleanliness and service are a givenand
people are becoming more interested in what they
are eating. FT/12.21.2002
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When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
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Customers will try low cost providers
because the Majors have not given them any clear
reason not to.Leading Insurance Industry
Analyst
60
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
61
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
62
Fight til Death!I thought, What a dreadful
mission I have in life. Id love to get
six-thousand restaurants up to spec, but when I
do its Ho-hum. Its bugged me ever since. Its
one of the great paradoxes of modern business. We
all know distinction is key, and yet in the last
twenty years we have created a plethora of ho-hum
products and services. Just go fly in an
airplane. It could be such an enlightening
experience. Ho-hum. We swim in an ocean of
ho-hum, and Im going to fight it. Im going to
die fighting it. Barry Gibbons
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The Big Day!
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
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These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
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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).
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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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
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Keep In Mind Customer Satisfaction versus
Customer Success
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E.g. UTC/Otis Carrier boxes to integrated
building systems
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Leased AC Units of Coolth
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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
73
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)
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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
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Omnicom 57 (of 6B) from marketing services
76
And
the Winners Are Televisions 12Cable TV
service 5Toys -10Child care 5Photo
equipment -7Photographers fees 3Sports
Equipment -2Admission to sporting event
3New car -2Car repair 3Dishes
flatware -1Eating out 2Gardening supplies
-0.1Gardening services 2Source
WSJ/05.16.03
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Core Logic (1) 108X5 to 8X1/ eLiza/ 100sf.
(2) Dept. to PSF/ WWPF. (3) V.A. via PSFs
Unbound/ Solutions/ Customer Success.
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IV. NEW BUSINESS. NEW BRAND.
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6. A World of Scintillating/ Awesome/ WOW
Experiences.
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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
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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
82
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
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Guinness as a brand is all about community. Its
about bringing people together and sharing
stories.Ralph Ardill, Imagination, in re
Guinness Storehouse
84
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
85
The Experience LadderExperiences
ServicesGoods Raw Materials
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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
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First Step (?!) Hire a theater director, as a
consultant or FTE!
88
Quality Service... Superb, graceful,
beautiful, divine, wonderful, an aesthetic
gesture James Hillman, Kinds of Power
89
Words! Magician of
Magical Moments Maestro of Moments of Truth
Recruiter of Raving Fans Impresario of First
Impressions Wizard of WOW Captain of
Brilliant Comebacks Director of Electronic
Customer Experiences Conductor of Customer
Intimacy King of Customer Community Queen of
Customer Retention CEO of Ownership
Experience Managing Director of After-sales
Experience
90
Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, A Unique Moment on the
excellence of Nokia, Nike, Lego, Virgin et al.
91
Extraction Goods Male dominanceServices
Experiences Female dominance
92
Women dont buy brands. They join
them.EVEolution
93
The Experience LadderExperiences
ServicesGoods Raw Materials
94
Ladder Position MeasureSolutions
Success(Experiences)Services
SatisfactionGoods Six-sigma
95
7. The Mostly Ignored Soul of Experiences
Design Rules!
96
Designs place in the universe.
97
And Tomorrow Fifteen years ago companies
competed on price. Now its quality. Tomorrow
its design.Robert Hayes
98
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
99
Design is treated like a religion at
BMW.Fortune
100
The new Beetle fails at most categories. The
only thing it doesnt fail in is drop-dead
charm.Jerry Hirshberg, Nissan Design
International
101
Object of Desire!Every now and then, a design
comes along that radically changes the way we
think about a particular object. Case in point
the iMac. Suddenly, a computer is no longer an
anonymous box. It is a sculpture, an object of
desire, something that you look at.Katherine
McCoy Michael McCoy, Illinois Institute of
Technology
102
The good 10 percent of American product design
comes out of big-idea companies that dont
believe in talking to the customer. They're run
by passionate maniacs who make everybodys life
miserable until they get what they want.Bran
Ferren, Applied Minds/Wired 1-2001
103
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
104
Check Out the LanguageTomorrow its design
Design is the only thing Design is
religion ...Drop-dead charm Object of
desire Passionate maniacs Fundamental
soul
105
Bottom Line.
106
Design is WHAT WHY I LOVE. LOVE.
107
Design is WHY I GET MAD. MAD.
108
Design is never neutral.
109
Hypothesis DESIGN is the principal difference
between love and hate!
110
Step No. 1 NOTEBOOK POWER!Start recording the
awesome the awful
111
User STOP BLAMING YOURSELF! (Don
Norman/Design of Everyday Things)
112
The Designers RingFor years I thought that
Dante should have established a designers ring
in his Hell. If any designers product raised a
blister, caused a bruise, ripped a stocking, or
caused any of the thousand things that frustrate
us with the products we use, that designer would
be assigned the designers ring in Hell and
forced to use that product for all of eternity.
James Pirki, designer and professor,
Syracuse University
113
Message (?????) Men cannot design for womens
needs.
114
Perhaps the macho look can be interesting if
you want to fight dinosaurs. But now to survive
you need intelligence, not power and aggression.
Modern intelligence means intuitionits female.
Source Philippe Starck, Harvard Design
Magazine (Summer 1998)
115
8. The Ultimate Market Megatrend Women Roar.
116
?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (home projects)
80Consumer Electronics 51 Cars 60
(90)All consumer purchases 83 Bank Account
89Health Care 80
117
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
118
Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
119
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.
120
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!)
121
Women's View of Male SalespeopleTechnically
knowledgeable assertive get to the point
pushy condescending insensitive to womens
needs.Source Judith Tingley, How to Sell to
the Opposite Sex (Martha Barletta, Marketing to
Women)
122
Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
123
It is obvious to a woman when another woman is
upset, while a man generally has to physically
witness tears or a temper tantrum or be slapped
in the face before he even has a clue that
anything is going on. Like most female mammals,
women are equipped with far more finely tuned
sensory skills than men. Barbara Allan
Pease, Why Men Dont Listen Women Cant Read
Maps
124
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
125
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
126
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
127
SensesVision Men, focused Women,
peripheral.Hearing Womens discomfort level I/2
mens.Smell Women gtgt Men.Touch Most sensitive
man lt Least sensitive women.Source Martha
Barletta, Marketing to Women
128
When a woman is upset, she talks emotionally to
her friends but an upset man rebuilds a motor or
fixes a leaking tap.Barbara Allan Peace, Why
Men Dont Listen Women Cant Read Maps
129
Editorial/Men Tables, rankings.Editorial/Women
Narratives that cohere.Redwood (UK)
130
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
131
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
132
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
133
2.6 vs. 21
134
Women dont buy brands. They join
them.EVEolution
135
Purchasing PatternsWomen Harder to convince
more loyal once convinced.Men Snap decision
fickle.Source Martha Barletta, Marketing to
Women
136
Not!Year of the Woman
137
Enterprise Reinvention!RecruitingHiring/Rewardi
ng/PromotingStructure ProcessesMeasurementStra
tegyCulture VisionLeadershipTHE BRAND ITSELF!
138
Honey, are you sure you have the kind of money
it takes to be looking at a car like this?
139
Customer is King 4,440Customer is Queen
29Source Steve Farber/Google search/04.2002
140
Notes to the
CEO--Women are not a niche so get this out
of the Specialty Markets group.--The
competition is starting to catch on. (E.g.
Nike, Nokia, Wachovia, Ford, Harley-Davidson,
Jiffy Lube, Charles Schwab, Citigroup,
Aetna.)--If you dip your toes in the water,
what makes you think youll get splashy
results?--Bust through the walls of the
corporate silos.--Once you get her, dont let
her slip away.--Women ARE the long run!
Source Martha Barletta, Marketing to Women
141
No Target MarketingYes Target Innovation
Target Delivery Systems
142
1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
143
9. It all adds up to THE BRAND.
144
The Heart of Branding
145
WHO ARE WE?
146
WHATS OUR STORY?
147
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
148
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
149
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
150
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
151
WHY DOES IT MATTER TO THE CLIENT?
152
EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
153
Message REAL Branding is personal. REAL
Branding is integrity. REAL Branding is
consistency freshness. REAL Branding is the
answer to WHO ARE WE? WHY ARE WE HERE? REAL
Branding is why I/you/we all get out of bed in
the morning. REAL Branding cant be faked.
REAL Branding is a systemic, 24/7, all
departments, all hands affair.
154
DO THE HOUSEKEEPERS CLERKS BUY IT? ARE YOU
V-E-R-Y SURE?
155
Branding Is-Is Not TableTNT is not
TNT is TNT is notJuvenile
Contemporary Old-fashionedMindless
Meaningful ElitistPredictable
Suspenseful DullFrivolous
Exciting SlowSuperficial
Powerful Self-important
156
Message Is Not gtgt Is
157
V. NEW BUSINESS. NEW WORK.
158
10. Toward Work that Matters The WOW Project.
159
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
160
Language matters! Wow! BHAG! Takes your breath
away!
161
Your Current Project?1. Another
days work/Pays the rent.4. Of value.7.
Pretty Damn Cool/Definitely subversive.10.
WE AIM TO CHANGE THE WORLD.
(Insane!/Insanely Great!/WOW!)
162
Lets make a dent in the universe.
Steve Jobs
163
11. WOW Projects for the Powerless A Surefire
Recipe.
164
Worlds Biggest Waste Selling Up
165
THE IDEA Model F4 Find a Fellow Freak Faraway
166
F2F!/K2K!/1_at_T/R.F!A.Freak to
Freak/ Kook to Kook/ One at a Time/
Ready.Fire!Aim.
167
And K2KKS2SSKook to Kooky
KustomerSkunk to Scintillating Supplier
168
BOTTOM LINEThe Enemy!
169
Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
170
Audie Murphy was the most decorated soldier in
WW2. He won every medal we had to offer, plus 5
presented by Belgium and France. There was one
common medal he never won
171
the Good Conduct medal.
172
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
173
12. Boss Work Demos, Heroes, Stories Or
Starting a WOW Projects Epidemic.
174
Premise Ordering Systemic Change is a Stupid
Waste of Time!
175
Demos! Heroes! Stories!
176
Some people look for things that went wrong and
try to fix them. I look for things that went
right and try to build on them. Bob Stone/
Mr.Rego/ Lessons from an Uncivil Servant
177
Leapfrog Group Lead Frogs
178
Demo StoryA key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner, Leading Minds An
Anatomy of Leadership
179
MBSA!Managing By Story-ing Around/David
Armstrong
180
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

181
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
182
REAL Org Change Demos Models (Model
Installations, ReGo Labs)/ Heroes (mostly
extant burned to reinvent govt)/ Stories
Storytellers (Props!)/ Chroniclers (Writers,
Videographers, Pamphleteers, Etc.)/ Cheerleaders
Recognition (PosgtgtNeg, Volume)/ New Language
(Hot/Emotional/WOW)/ Seekers (networking mania)/
Protectors/ Support Groups/ End RunsPull
Strategy (weird alliances, weird customers,
weird suppliers, weird alumnae-JKC)/ Field Real
People Focus (3 COs) (long way away)/ Speed
(O.O.D.A. Loopsact before the bad guys can
react)C.f., Bob Stone, Lessons from an Uncivil
Servant
183
Stories Paint me a picture Story
infrastructure Demos Quick prototypes
Experiments Heroes Renagades Leadfrogs
Skunkworks Demo Funds V.C. G.M. Roster
Portfolio Stones Rules JKCs Rules
184
VI. NEW BUSINESS. NEW YOU.
185
13. Re-inventing the Individual Welcome to a
Brand You World
186
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
187
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
188
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)
189
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)
190
26.3
191
3 Weeks in MayTraining Prep 187Work
41(Other 17)
192
1 vs. 367
193
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?
194
Edward Jones Training Machine146
hours/employee/yearNew hires 4X avg.3.8 of
payroll 1, The 100 Best Companies To Work
For/Fortune/01.2003
195
R.D.A.Rate 15?, 25?Therefore Formal
Investment Strategy/R.I.P.
196
Personal Brand Equity Evaluation

• I am known for 2 to 3 things next year at this
  time Ill also be known for 1 more thing.
• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• Additions to my Rolodex in the last 90 days
  include
• My resume is discernibly different from last
  years at this time

197
You are the storyteller of your own life, and
you can create your own legend or not.Isabel
Allende
198
14. Boss Job One The Talent Obsession.
199
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
200
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
201
Brand Talent.
202
The Talent Ten
203
1. ObsessionP.O.T. All ConsumingPursuit
of Talent
204
Model 25/8/53 Sports Franchise GM48 500M
205
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
206
PARCs Bob Taylor Connoisseur of Talent
207
Les Wexner From sweaters to people!
208
2. GreatnessOnly The Best!
209
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
210
3. PerformanceUp or out!
211
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
212
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
213
4. PayFork Over!
214
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)
215
5. Youth Grovel Before the Young!
216
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
217
8 Minutes Dr. Sugata Mira, NIIT/ New Delhi/
1999Ignorance to SurfingAnd then theres
oya yubi sedai, the thumb generation
218
6. DiversityMess Rules!
219
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
220
7. WomenBorn to Lead!
221
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
222
8. WeirdThe Cracked Ones Let in the Light!
223
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
224
The Bottleneck is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma? At the top!
Gary Hamel, Strategy or Revolution/ Harvard
Business Review
225
9. OpportunityMake It an Adventure!
226
H.R. to H.E.D. ???Human
Enablement Department
227

• Firms will not manage the careers of their
  employees. They will provide opportunities to
  enable the employee to develop identity and
  adaptability and
• thus be in charge of his or her own career.
• Tim Hall et al., The New Protean Career
  Contract

228
Talent Department
229
People DepartmentCenter for Talent
ExcellenceSeriously Cool People Who Recruit
Develop Seriously Cool PeopleEtc.
230
10. Leading GeniusWe are all unique!
231
Beware Lurking HR Types One size NEVER fits
all. One size fits one. Period.
232
48 Players 48 Projects 48 different success
measures.
233
MantraM3Talent Brand
234
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
235
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
236
Talents Big Two RulesGREAT Finance Dept.
GREAT Football TeamDIFFERENCES Among Cello
Players DIFFERENCES Among Hotel GMs
237
15. Meet the New Boss Women Rule!
238
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
239
Lawrence A. Pfaff Assoc. 2 Years, 941 mgrs
(672M, 269F) 360º feedback Women 20 of 20
15 of 20 with statistical significance, incl.
decisiveness, planning, setting stds.) Men
are not rated significantly higher by any of the
raters in any of the areas measured. (LP)
240
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
241
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
242
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
243
Thank you17 Men 84 Women 19
244
Okay, you think Ive gone tooooo far. How about
this DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?
245
16. Brand Talent Addressing the Education
Fiasco
246
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!
247
How many artists are there in the room? Would
you please raise your hands. FIRST GRADE En
masse 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 participating in the
suppression of creative genius.Gordon
MacKenzie, Orbiting the Giant Hairball A
Corporate Fools Guide to Surviving with Grace
248
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
249
Ye gads Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, hes actually found
a negative correlation. It seems that
school-related evaluations are poor predictors of
economic success, Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most schools
penalized risk takers. Most educational systems
reward those who play it safe. As a result, those
who do well in school find it hard to take risks
later on.Richard Farson Ralph Keyes, Whoever
Makes the Most Mistakes Wins
250
The NAESP
251
Attributes of Those Who Made the 10th Grade
History Book

• Committed!
• Determined to make a difference!
• Focused!
• Passionate!
• Irrational about their lifes project!
• Ahead of their time / Paradigm busters!
• Impatient! / Action Obsessed

252
Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar! / Rebels! /
  Irreverent!
• Masters of improv / Thrive on chaos / Exploit
  chaos!

253
Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar! / Rebels! /
  Irreverent!
• Masters of improv / Thrive on chaos / Exploit
  chaos!

254
Attributes of Those Who Made the 10th Grade
History Book

• Forgiveness gt Permission
• Bone honest!
• Flawed as the dickens!
• In touch with their followers aspirations
• Damn good at what they do!

255
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
256
VII. NEW BUSINESS (NEW) BRAND INSIDE RULES
257
Message2002 BI gt BO
258
Brand Inside Rules!I came to see in my time at
IBM that culture isnt just one aspect of the
gameit is the game Lou Gerstner, Who Says
Elephants Cant Dance?
259
Brand Inside Rules!If I could have chosen not
to tackle the IBM culture head-on, I probably
wouldnt have. My bias coming in was toward
strategy, analysis and measurement. In
comparison, changing the attitude and behaviors
of hundreds of thousands of people is very, very
hard. Lou Gerstner, Who Says Elephants Cant
Dance?
260
17. THINK WEIRD the HVA/ High Value Added
Bedrock.
261
We are crazy. We should do something when
people say it is crazy. If people say something
is good, it means someone else is already doing
it.Hajime Mitarai, Canon
262
THINK WEIRD The High Standard Deviation
Enterprise.
263
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
264
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
265
If you worship at the throne of the voice of
the customer, youll get only incremental
advances.Joseph Morone, President, Bentley
College
266
These days, you cant succeed as a company if
youre consumer led because in a world so full
of so much constant change, consumers cant
anticipate the next big thing. Companies should
be idea-led and consumer-informed.Doug Atkin,
partner, Merkley Newman Harty
267
HAVE MBAs KILLED OFF MARKETING? Prof Rajeev
Batra says What these times call for is more
creative and breakthrough reengineering of
product and service benefits, but we dont train
people to think like that. The way marketing is
taught across business schools is far too
analytical and data-driven. Weve taken away the
emphasis on creativity and big ideas that
characterize real marketing breakthroughs. In
India there is an added problem most senior
marketing jobs have been traditionally dominated
by MBAs. Santosh Desai, vice president, McCann
Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like
approach, tend to reduce marketing into neat
components. This reductionist thinking runs
counter to the idea that great brands must have a
core, unifying idea. Businessworld/04Nov2002/W
hy Is Marketing Not Working?
268
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
269
The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
270
EMPLOYEES Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
271
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
272
BOARDS Extremely contentious boards that
regard dissent as an obligation and that treat no
subject as undiscussable Jeffrey Sonnenfeld,
Yale School of Management, on top performers
273
We become who we hang out with!
274
WEIRD IDEAS THAT WORK (1) Hire slow learners (of
the organizational code). (1.5) Hire people who
make you uncomfortable, even those you dislike.
(2) Hire people you (probably) dont need. (3)
Use job interviews to get ideas, not to screen
candidates. (4) Encourage people to ignore and
defy superiors and peers. (5) Find some happy
people and get them to fight. (6) Reward
success and failure, punish inaction. (7)
Decide to do something that will probably fail,
then convince yourself and everyone else that
success is certain. (8) Think of some
ridiculous, impractical things to do, then do
them. (9) Avoid, distract, and bore
customers, critics, and anyone who just wants to
talk about money. (10) Dont try to learn
anything from people who seem to have solved the
problems you face. (11) Forget the past,
particularly your companys success. Bob
Sutton, Weird Ideas That Work 11½ Ideas for
Promoting, Managing, and Sustaining Innovation
275
Deviants, Inc. Deviance tells the story of
every mass market ever created. What starts out
weird and dangerous becomes Americas next big
corporate payday. So are you looking for the next
mass market idea? Its out there way out
there.Source Ryan Matthews Watts Wacker,
Fast Company (03.02)
276
Big Idea/sV.C. GMPortfolioRoster
277
VIII. NEW BUSINESS. NEW LEADERSHIP.
278
18. The Passion Imperative The Leadership50
279
The Basic Premise.
280
1. Leadership Is a Mutual Discovery Process.
281
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!
282
I dont know.
283
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
284
The Leadership Types.
285
2. Great Leaders on Snorting Steeds Are Important
but Great Talent Developers (Type I Leadership)
are the Bedrock of Organizations that Perform
Over the Long Haul.
286
25/8/53(Damn it!)
287
Whoops Jack didnt have a vision!
288
3. But Then Again, There Are Times When This
Cult of Personality (Type II Leadership) Stuff
Actually Works!
289
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
290
4. Find the Businesspeople! (Type III
Leadership)
291
I.P.M. (Inspired Profit Mechanic)
292
5. All Organizations Need the Golden Leadership
Triangle.
293
The Golden Leadership Triangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic.
294
6. Leadership Mantra 1 IT ALL DEPENDS!
295
Renaissance Men are a snare, a myth, a delusion!
296
7. The Leader Is Rarely/Never the Best Performer.
297
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.
298
The Leadership Dance.
299
8. Leaders SHOW UP!
300
Rudy!
301
9. Leaders LOVE the MESS!
302
Im not comfortable unless Im
uncomfortable.Jay Chiat
303
If things seem under control, youre just not
going fast enough.Mario Andretti
304
10. Leaders DO!
305
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!)
306
You miss 100 percent of the shots you dont
take. Wayne Gretsky
307
We have a strategic plan. Its called doing
things. Herb Kelleher
308
11. Leaders Re-do.
309
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
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
310
If it works, its obsolete. Marshall McLuhan
311
12. BUT Leaders Know When to Wait.
312
Tex Schramm The too hard box!
313
13. Leaders Are Optimists.
314
Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
315
Half-full Cups Ronald Reagan radiated an
almost transcendent happiness.Lou Cannon,
George (08.2000)
316
14. Leaders DELIVER!
317
Leaders dont want to win. Leaders need to
win.49
318
It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
319
When assessing candidates, the first thing I
looked for was energy and enthusiasm for
execution. Does she talk about the thrill of
getting things done, the obstacles overcome, the
role her people playedor does she keep wandering
back to strategy or philosophy? Larry Bossidy,
Honeywell/AlliedSignal, in Execution