Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeFrito Lay/Austin/05.04.2004
2
Slides at tompeters.com
3
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
4
Montgomery Ward K-Mart Sears Macys
Hutzlers Wannamakers DEC Wang Compaq
Chase Manhattan American Motors Chrysler
U. S. Steel Bethlehem Steel ATT Soviet
Union
5
WalMart Dell Microsoft U.S.A.
6
All Bets Are Off.
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14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
8
The world has arrived at a rare strategic
inflection point where nearly half its
populationliving in China, India and Russiahave
been integrated into the global market economy,
many of them highly educated workers, who can do
just about any job in the world. Were talking
about three billion people. Craig
Barrett/Intel/01.08.2004
9
There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
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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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This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
12
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.
13
Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
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Erics ArmyFlat.Fast.Agil
e.Adaptable.Light But Lethal.Talent/ I Am
an Army of One.Info-intense.Network-centric.
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Float like a butterfly. Sting like a bee. Ali
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Boyd
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OODA Loop/Boyd CycleUnraveling the
competition/ Quick Transients/ Quick Tempo (NOT
JUST SPEED!)/ Agility/ So quick it is
disconcerting (adversary over-reacts or
under-reacts)/ Winners used tactics that caused
the enemy to unravel before the fight (NEVER
HEAD TO HEAD)BOYD The Fighter Pilot Who
Changed the Art of War (Robert Coram)
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Blitzkrieg is far more than lightning thrusts
that most people think of when they hear the
term rather it was all about high operational
tempo and the rapid exploitation of
opportunity./ Arrange the mind of the
enemy.T.E. Lawrence BOYD The Fighter Pilot
Who Changed the Art of War (Robert Coram)
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Thunder Run/3rd Infantry Division/04.07.2004/We
wanted to create as much chaos as possible.COL
David Perkins/Disorient and demoralizeDHR
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There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
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We are in a brawl with no rules.Paul Allaire
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S.A.V.
23
Strategy meetings held once or twice a year to
Strategy meetings needed several times a week
Source New York Times on Meg Whitman/eBay
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Successful Businesses Dozen Truths TPs
30-Year Perspective1. Insanely Great Quirky
Talent.2. Disrespect for Tradition.3. Totally
Passionate (to the Point of Irrationality) Belief
in What We Are Here to Do.4. Utter
Disbelief at the Bullshit that Marks Normal
Industry Behavior.5. A Maniacal Bias for
Execution and Utter Contempt for Those Who
Dont Get It.6. Speed Demons.7. Up or Out.
(Meritocracy Is Thy Name. Sycophancy Is Thy
Scourge.)8. Passionate Hatred of Bureaucracy.9.
Willingness to Lead the Customer and Take the
Heat Associated Therewith. (Mantra Satan
Invented Focus Groups to Derail True
Believers.)10. Reward Excellent Failures.
Punish Mediocre Successes. 11. Courage to Stand
Alone on Ones Record of Accomplishment
Against All the Forces of Conventional
Wisdom.12. A Crystal Clear Understanding of
Brand Power.
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2. The Destruction Imperative.
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Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown.Kevin Kelly,
New Rules for the New Economy
27
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
28
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
29
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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Perfection is achieved only by institutions on
the point of collapse. C. Northcote Parkinson
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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
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2A. Yo, Jim Collins. OrThe Case for
Technicolor!
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I. Good to GreatII. Built to LastIII. Quiet,
Humble Leaders
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I. Good to GreatII. Built to LastIII. Quiet,
Humble Leaders
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Good to Great Fannie Mae Kroger Walgreens
Philip Morris Pitney Bowes Abbott
Kimberly-Clark Wells Fargo
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Great Companies SET THE AGENDA. (Period.)
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AGENDA SETTERS Set the Table/ Pioneers/
Questors/ AdventurersUS Steel Ford Macys
Sears Litton Industries ITT The Gap
Limited WalMart PG 3M Intel IBM
Apple Nokia Cisco Dell MCI Sun Oracle
Microsoft Enron Schwab GE Southwest
Laker People Express Ogilvy Chiat/Day
Virgin eBay Amazon Google Sony BMW
CNN
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I. Good to GreatII. Built to LastIII. Quiet,
Humble Leaders
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Built to Last v. Built to FlipThe problem with
Built to Last is that its a romantic notion.
Large companies are incapable of ongoing
innovation, of ongoing flexibility.Increasingl
y, successful businesses will be ephemeral. They
will be built to yield something of value and
once that value has been exhausted, they will
vanish.Fast Company
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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)
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I. Good to GreatII. Built to LastIII. Quiet,
Humble Leaders
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Huh?Quiet, workmanlike, stoic leaders bring
about the big transformations.--JC
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WellingtonNelsonDisraeliChurchillMontgomeryTh
atcher
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Humble Pastels?T. Paine/P. Henry/A.
Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S.
Grant/W.T. ShermanTR/FDR/LBJ/RR/JFKPatton/Monty/
HalseyM.L. King/C. de Gaulle/M. Gandhi/W.
ChurchillPicasso/Mozart/Copernicus/Newton/Einstei
n/Djarassi/Watson H. Clinton/G. Steinem/I.
Gandhi/G. Meir/M. Thatcher E. Shockley/A.
Grove/J. Welch/L. Gerstner/L. Ellison/B.
Gates/S. Jobs/S. McNealy/T. Turner/R. Murdoch/W.
Wriston A. Carnegie/J.P. Morgan/H. Ford/S.
Honda/J.D. Rockefeller/T.A. Edison
Rummy/Norm/Henry/Wolfie Elizabeth Cady
Stanton/Susan B. Anthony/Martha Cary
Thomas/Carrie Chapman Catt/Alice Paul/Anna
Elizabeth Dickinson/Arabella Babb
Mansfield/Margaret Sanger
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch, on GEs quality program
48
In Italy for 30 years under the Borgias they had
warfare, terror, murder, bloodshedand produced
Michelangelo, da Vinci and the Renaissance. In
Switzerland they had brotherly love, 500 years of
democracy and peace, and what did they
producethe cuckoo clock.Orson Welles, as
Harry Lime, in The Third Man
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3. The Heart of the Value Added Revolution The
Solutions Imperative.
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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
51
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
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Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique Now ... or Never
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Funky Business To succeed we must stop being so
goddamn normal. In a winner-takes-all world,
normal nothing.
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This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Gameboy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to follow
the leader is this The leader is the leader
precisely because he did something remarkable.
And that remarkable thing is now takenso its no
longer remarkable when you decide to do it.
Seth Godin, Fast Company/02.2003
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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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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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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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
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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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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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4. A World of Scintillating 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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The Experience LadderExperiences
ServicesGoods Raw Materials
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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
66
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
68
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
69
WHAT CAN BROWN DO FOR YOU?
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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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Lexus sells its cars as containers for our sound
systems. Its marvelous. Sidney Harman/ Harman
International
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Duet Whirlpool washing machine to fabric
care system white goods a sea of
undifferentiated boxes 400 to 1,300 the
Ferrari of washing machines consumer They
are our little mechanical buddies. They have
personality. When they are running efficiently,
our lives are running efficiently. They are part
of my family. machine as aesthetic showpiece
laundry room to family studio / designer
laundry room (complements Sub-Zero refrigerator
and home-theater center)Source New York Times
Magazine/01.11.2004
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1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
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5. Experiences Embracing the Dream Business.
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DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
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The marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
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(Revised) Experience LadderDreams Come True
Awesome ExperiencesSolutionsServicesGoodsRaw
Materials
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The sun is setting on the Information
Societyeven before we have fully adjusted to its
demands as individuals and as companies. We have
lived as hunters and as farmers, we have worked
in factories and now we live in an
information-based society whose icon is the
computer. We stand facing the fifth kind of
society the Dream Society. The Dream Society
is emerging this very instantthe shape of the
future is visible today. Right now is the time
for decisionsbefore the major portion of
consumer purchases are made for emotional,
nonmaterialistic reasons. Future products will
have to appeal to our hearts, not to our heads.
Now is the time to add emotional value to
products and services. Rolf Jensen/The Dream
SocietyHow the Coming Shift from Information to
Imagination Will Transform Your Business
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Six Market Profiles1.
Adventures for Sale2. The Market for
Togetherness, Friendship and Love3. The
Market for Care4. The Who-Am-I Market5. The
Market for Peace of Mind6. The Market for
Convictions Rolf Jensen/The Dream Society
How the Coming Shift from Information to
Imagination Will Transform Your Business
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6. The Mostly Ignored Soul of Experiences
Design Rules!
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Design Transforms even the Biggest
Corporations!TARGET the champion of
Americas new design democracy (Time) Marketer
of the Year 2000 (Advertising Age)
82
Lady Sensor, Mach3, and 70M on developing
the OralB CrossAction toothbrush23 patents,
including 6 for the packagingSource
www.ecompany.com 06.00
83
LISTERINEs PocketPaks
84
Westins Heavenly Bed
85
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
86
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
87
Hypothesis DESIGN is the principal difference
between love and hate!
88
THE BASE CASE I am a design fanatic. Though
not artistic, I love cool stuff. But it
goes much further, far beyond the personal.
Design has become a professional obsession. I
SIMPLY BELIEVE THAT DESIGN PER SE IS THE
PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT or
detachment RELATIVE TO A PRODUCT OR SERVICE OR
EXPERIENCE. Design, as I see it, is arguably
the 1 DETERMINANT of whether a
product-service-experience stands out or
doesnt. Furthermore, its another one of those
things that damn few companies put
consistently on the front burner.
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Message (?????) Men cannot design for womens
needs.
90
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)
91
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer 2002
92
7. Trends Worth Trillion I Women Roar.
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 (66
home computers) Cars 68 (90)All consumer
purchases 83 Bank Account 89Household
investment decisions 67Small business
loans/biz starts 70Health Care 80
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2/3rds working women/50 working wives gt
5080 checks61 bills53 stock (mutual fund
boom)43 gt 500K95 financial decisions/ 29
single handed
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1970-1998Mens median income 0.6Womens
median income 63Source Martha Barletta,
Marketing to Women
96
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
97
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.
98
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
99
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
100
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
101
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
102
Editorial/Men Tables, rankings.Editorial/Women
Narratives that cohere.Redwood (UK)
103
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
104
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
105
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
106
Women dont buy brands. They join
them.EVEolution
107
2.6 vs. 21
108
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.
109
Customer is King 4,440Customer is Queen
29Source Steve Farber/Google search/04.2002
110
8. Trends Worth Trillion II Boomer Bonanza/
Godzilla Geezer.
111
Subject Marketers StupidityIts 18-44,
stupid!
112
Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
113
2000-2010 Stats18-44 -155 21(55-64
47)
114
44-65 New Consumer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
115
The New Consumer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for
thousands of companies. David Wolfe Robert
Snyder, Ageless Marketing
116
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
117
507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury cars610B
healthcare spending/74 prescription drugs5
of advertising targetsKen Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
118
Households headed by someone 40 or older enjoy
91 (9.7T) of our populations net worth. The
mature market is the dominant market in the U.S.
economy, making the majority of expenditures in
virtually every category. Carol Morgan Doran
Levy, Marketing to the Mindset of Boomers and
Their Elders
119
Advertisers pay more to reach the kid because
they think that once someone hits middle age hes
too set in his ways to be susceptible to
advertising. In fact, this notion of
impressionable kids and hidebound geezers is
little more than a fairy tale, a Madison Avenue
gloss on Hollywoods cult of youth.James
Surowiecki (The New Yorker/04.01.2002)
120
Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly understood.
Peter Francese, founding publisher, American
Demographics
121
Focused on assessing the marketplace based on
lifetime value (LTV), marketers may dismiss the
mature market as headed to its grave. The reality
is that at 60 a person in the U.S. may enjoy 20
or 30 years of life. Carol Morgan Doran Levy,
Marketing to the Mindset of Boomers and Their
Elders
122
Women 65 and older spent 14.7 billion on
apparel in 1999, almost as much as that spent by
25- to 34-year-olds. While spending by the older
women increased by 12 from the previous year,
that of the younger group increased by only 0.1.
But who in the fashion industry is currently
pursuing this market? Carol Morgan Doran
Levy, Marketing to the Mindset of Boomers and
Their Elders
123
Age Power will rule the 21st century, and we
are woefully unprepared.Ken Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
124
No Target MarketingYes Target Innovation
Target Delivery Systems
125
9. THINK WEIRD the HVA/ High Value Added
Bedrock.
126
THINK WEIRD The High Standard Deviation
Enterprise.
127
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
128
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
129
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
130
20 of 267 of top 10
131
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
132
Account planning has become focus group
balloting.Lee Clow
133
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
134
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?
135
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
136
To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renee Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/08.11.03
137
The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
138
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
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We become who we hang out with!
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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
141
Kevin Roberts Credo1. Ready. Fire! Aim.2. If
it aint broke ... Break it!3. Hire crazies.4.
Ask dumb questions.5. Pursue failure.6. Lead,
follow ... or get out of the way!7. Spread
confusion.8. Ditch your office.9. Read odd
stuff.10. Avoid moderation!
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Advice to Corporate Leaders Consider the
metaphor of the windmill You can harness raw
power but you cant control it. Hire artists,
clowns, or other disrupters to come in and
challenge your corporate environment. Hire a
corporate anthropologist to analyze how tolerant
your organization is of deviants and other
innovators. Once the anthropologist leaves,
hire a shaman to drive out the evil spirits of
conformity. Source Ryan Matthews Watts
Wacker, Fast Company (03.02)
143
Innovation Index How many of your Top 5
Strategic Initiatives score 7 or higher (out of
10) on a Weirdness/Profundity Scale?
144
10. Leading in Totally Screwed-Up Times The
Passion Imperative
145
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
146
I dont know.
147
Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
148
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!)
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Im not comfortable unless Im
uncomfortable.Jay Chiat
150
If things seem under control, youre just not
going fast enough.Mario Andretti
151
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
152
BZ I am a Dispenser of Enthusiasm!
153
In Toms world, its always better to try a swan
dive and deliver a colossal belly flop than to
step timidly off the board while holding your
nose.Fast Company /October2003
154
The Re-imagineers Credo or, Pity the Poor
BrownTechnicolor Times demand Technicolor
Leaders and Boards who recruit Technicolor
People who are sent on Technicolor Quests to
execute Technicolor (WOW!) Projects in
partnership with Technicolor Customers and
Technicolor Suppliers all of whom are in
pursuit of Technicolor Goals and Aspirations
fit for Technicolor Times.WSC
155
Dream as if youll live forever. Live as if
youll die today. James Dean
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the wildest chimera of a moonstruck mind The
Federalist on Jeffersons Louisiana Purchase