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Title: Tom Peters


1
Tom Peters Inspiring Strategies A
One-day National Management Conference1 October
2004/Hilton London Metropole
2
Slides at tompeters.com
3
V.A. Moment 1Y/2N Commerce Bank2 Pizzas
JBPlastic Bulldozer MD
4
Re-imagine!Summer 2004 Not Your Fathers World
I.
5
Chinas size does not merely enable low-cost
manufacturing it forces it. Increasingly, it is
what Chinese businesses and consumers choose for
themselves that determines how the American
economy operates. Ted Fishman/The Chinese
Century/The New York Times Magazine /07.04.04
6
Vaunted German Engineers Face Competition From
China Headline, p1/WSJ/07.15.2004
7
The Ultimate Luxury Item Is Now Made in China
Headline/p1/The New York Times/
07.13.2004/Topic Luxury Yachts made in Zhongshan
8
When the Silk Road Gets Paved/Forbes
Global/09.04Express highways 168 miles in 89
18,500 in 03 51,000 in 08 (v. U.S.
Interstate 46,500)Implications 200M Intel
plant in Chengdu (pop. 9.9M) 1/3rd Shanghai wage
rate
9
International Herald Tribune /09.13.2004 p1/600
foreign RD labs in China, 200 new per year
10
You get an educated workforce, remarkable
infrastructure, a lot of government support.
These Southeast Asian governments have made
life sciences a top priorityand they have a
great venture capital community there. Glenn
Rice, VP Pharmaceutical Discovery and
Development, SRI International (On the rapid
migration of drug discovery from the U.S. at a
20 to 40 cost saving. Rice adds that 40 to 60
of U.S. postdocs are from China and Taiwan) From
Stanford Business /August 2004
11
60,000New factories in China opened by
foreigners/2000-2003/Edward Gresser, Progressive
Policy Institute/Wall Street Journal 09.27.04
12
60,000600/200168/18,500/51,000
13
Re-imagine!Summer 2004 Not Your Fathers World
II.
14
No Limits?Short on Priests, U.S. Catholics
Outsource Prayer to Indian Clergy Headline, New
York Times/06.13.04 (Special intentions, .90
for Indians, 5.00 for Americans)
15
About a year ago I hired a developer in India to
do my job. I pay him 12,000 to do the job I get
paid 67,300 for. He is happy to have the work. I
am happy that I only have to work about 90
minutes per day (I still have to attend meetings
myself, and I spend a few minutes every day
talking code with my Indian counterpart.) The
rest of my time my employer thinks Im
telecommuting. They are happy to let me
telecommute because my output is higher than most
of my coworkers. Now Im considering getting a
second job and doing the same thing with it. That
may be pushing my luck though. The extra money
would be nice, but that could push my workday
over five hours. from posting at Slashdot
(02.04.04), reported by Dan Pink in A Whole New
Mind
16
Re-imagine!Summer 2004 Not Your Fathers World
III.
17
A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
18
Were now entering a new phase of business where
the group will be a franchising and management
company where brand management is central.
David Webster, Chairman, InterContinental
Hotels GroupInterContinental will now have far
more to do with brand ownership than hotel
ownership. James Dawson of Charles Stanley
(brokerage)Source International Herald
Tribune, 09.16, on the sacking of CEO Richard
North, whose entire background is in finance
19
Biases.
20
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
21

Everything You Need to Know about
Strategy 1. Do you have awesome Talent
everywher? Do you push that Talent to pursue
Audacious Quests? 2. Is your Talent Pool loaded
with wonderfully peculiar people who others
wouldcall problems? And what about your
Extended Community of customers, vendors et
al? 3. Is your Board of Directors as cool as your
product offerings and does it have50 percent
(or at least one-third) Women Members? 4.
Long-term, its a Top-line World Is creating a
culture that cherishes above all things
Innovation and Entrepreneurship your primary aim?
Remember Innovation not Imitation! 5. Are the
Ultimate Rewards heaped upon those who exhibit an
unswerving Bias for Action, to quote the
co-authors of In Search of Excellence? Are your
O.O.D.A. loops shorter than the next guys? 6.
Do you routinely use hot, aspirational
words-terms like Excellence and B.H.A.G. (Big
Hairy Audacious Goal, per Jim Collins) and Lets
make a dent in the Universe (the Word according
to Steve Jobs)? Is Reward excellent failures,
punish mediocre successes your de facto or de
jure motto? 7. Do you subscribe to Jerry Garcias
dictum We do not merely want to be the best of
the best, we want to be the only ones who do what
we do? 8. Do you elaborate on and enhance Jerry
Gs dictum by adding, We subscribe to Best
Sourcingand only want to associate with the
best of the best. 9. Do you embrace the new
technologies with child-like enthusiasm and a
revolutionarys zeal? 10. Do you serve and
satisfy customers or go berserk attempting
to provide every customer with an awesome
experience that does nothing less than
transform the way she or he sees the world?11.
Do you understand to your very marrow that
the two biggest under-served markets are Women
and Boomers-Geezers? And that to take advantage
of these two Monster Trends (FACTS OF LIFE)
requires fundamental re-alignment of the
enterprise? 12. Are your leaders accessible? Do
they wear their passion on their sleeves? Does
integrity ooze out of every pore of the
enterprise? Is We care your implicit motto? 13.
Do you understand business mantra 1 of the 00s
DONT TRY TO COMPETEWITH WALMART ON PRICE OR
CHINA ON COST? (And if you get this last idea,
then see the 12 above!)
22
We all agree your theory is crazy. The question,
which divides us, is whether it is crazy enough.
Niels Bohr, to Wolfgang Pauli
23
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!
24
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source
Fortune/10.03
25
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
26
Purpose.
27
It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public. from the back cover,
Re-imagine!
28
Its no longer enough to be a change agent.
You must be a change insurgentprovoking,
prodding, warning everyone in sight that
complacency is death. Bob Reich
29
Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max De Pree, Herman
Miller
30
Total Enterprise Revision Not optionalTotal
Value proposition revision Not
optionalAll-the-way IS/IT solutions Not
optionalFull-scale globalization Not
optionalWork done where it best makes sense
Not optional
31
I. NEW BUSINESS. NEW CONTEXT.
32
Re-imagine Everything All Bets Are Off.
33
Jobs TechnologyGlobalization War, Warfighting
Security
34
Jobs New TechnologyGlobalization War,
Warfighting Security
35
When I was growing up, my parents used to say to
me Finish your dinnerpeople in China are
starving. I, by contrast, find myself wanting to
say to my daughters Finish your homeworkpeople
in China and India are starving for your job.
Thomas Friedman/06.24.2004
36
Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.04
37
There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
38
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/08.18.03
39
Thaksinomics (after Thaksin Shinawatra, PM)/
Bangkok Fashion City/ managed asset reflation
(add to brand value of Thai textiles by
demonstrating flair and design excellence)Sourc
e The Straits Times/03.04.2004
40
People skills emotional intelligence
(financial service sales, 78/248K RNs,
28/512K lawyers, 24/182K)Imagination
creativity (architects, 44/60K designers,
43/230K photographers, 38/50K)Analytic
reasoning (legal assts, 66/159K electronic
engs, 28/147K)Source Where the Jobs
Are/NYT/05.13.2004/data 1994-2004
41
-Formulaic intelligence (health record clerks,
63/36K secretaries typists, 30/1.3M
bookkeepers, 13/247K)Manual dexterity (sewing
machine ops, 50/347K lathe ops, 49/30K
butchers, 23/67K)Muscle power (timber cutters,
32/25K farm workers, 20/182K) Source Where
the Jobs Are/NYT/05.13.2004/data 1994-2004
42
Over the last decade the biggest employment
gains came in occupations that rely on people
skills and emotional intelligence and among jobs
that require imagination and creativity. Trying
to preserve existing jobs will prove futiletrade
and technology will transform the economy whether
we like it or not. We will be better off if they
strive to move up the hierarchy of human talents.
Thats where our future lies. Michael Cox,
Richard Alm and Nigel Holmes/Where the Jobs
Are/NYT/05.13.2004
43
The past few decades have belonged to a certain
kind of person with a certain kind of
mindcomputer programmers who could crank code,
lawyers who could craft contracts, MBAs who could
crunch numbers. But the keys to the kingdom are
changing hands. The future belongs to a very
different kind of person with a very different
kind of mindcreators and empathizers, pattern
recognizers and meaning makers. These
peopleartists, inventors, designers,
storytellers, caregivers, consolers, big picture
thinkerswill now reap societys richest rewards
and share its greatest joys. Dan Pink, A Whole
New Mind
44
Agriculture Age (farmers)Industrial Age (factory
workers)Information Age (knowledge
workers)Conceptual Age (creators and
empathizers)Source Dan Pink, A Whole New Mind
45
(No Transcript)
46
Jobs TechnologyGlobalization War, Warfighting
Security
47
Behind Surging Productivity The Service Sector
Delivers. Firms Once Thought Immune to Boosting
Worker Output Are Now Big Part of the Trend
Headline/WSJ/11.03
48
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
49
UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes, upon naming UPS Company of the
Year in Y2000
50
Jobs TechnologyGlobalization War, Warfighting
Security
51
Asias rise is the economic event of our age.
Should it proceed as it has over the last few
decades, it will bring the two centuries of
global domination by Europe and, subsequently,
its giant North American offshoot to an end.
Financial Times (09.22.2003)
52
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
53
Jobs TechnologyGlobalization War, Warfighting
Security
54
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
55
All Bets Are Off!
56
We are in a brawl with no rules.Paul Allaire
57
S.A.V.
58
Strategy meetings held once or twice a year to
Strategy meetings needed several times a week
Source New York Times on Meg Whitman/eBay
59
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control? Or evolution
and learning? Do we think that progress
requires a central blueprint? Or do we see it as
a decentralized, evolutionary process? Do we
see mistakes as permanent disasters? Or the
correctable byproducts of experimentation? Do
we crave predictability? Or relish surprise?
These two poles, stasis and dynamism,
increasingly define our political, intellectual
and cultural landscape. Virginia Postrel, The
Future and Its Enemies
60
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
61
2. Re-imagine Permanence The Destruction
Mandate.
62
Montgomery Ward Kmart Sears Macys DEC
Wang Compaq Chase Manhattan American Motors
Chrysler U. S. Steel Bethlehem Steel
ATT Soviet Union
63
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
64
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
65
I dont believe in economies of scale. You dont
get better by being bigger. You get worse. Dick
Kovacevich/Wells Fargo/Forbes08.2004 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
66
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
67
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
68
Market Share, Anyone? 240
industries market-share leader is ROA
leader 29 of the time Profit / ROA leaders
aggressively weed out customers who
generate low returns
Source Donald V. Potter, Wall Street Journal
69
Welch was to a large degree a growth-by-acquisiti
on man. In the late 90s, Immelt says, We
became business traders, not business growers.
Today organic growth is absolutely the biggest
task of everyone of our companies. If we dont
hit our organic growth targets, people are not
going to get paid. Immelt has staked GEs
future growth on the force that guided the
company at its birth and for much of its
history breathtaking, mind-blowing,
world-rattling technological innovation. GE
Sees the Light/Business 2.0/July 2004
70
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
71
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
72
Bottom line No promotion to senior levels of
public or private enterprise should ever again be
granted to anyone who does not present a CV
saturated by a clear and compelling demonstration
of sustained commitment to Radical Change. Do we
wish for good strategists? Why not! But the
heart of the matter goes far beyond any plan, no
matter how brilliant. The heart of the matter is
Heart Will ... a record of upsetting apple
carts, dislodging establishments, and
fundamentally altering deep-rooted cultures to
embrace change of the most primal sort. I titled
my most recent book Re-imagine! Business
Excellence in a Disruptive Age. Excellence in a
disruptive age is not excellence amidst placid
waters. The notion of excellence itself changes
... dramatically. We need our public and private
Churchills, leaders who can re-imagine, who can
call forth wellsprings of Daring and Guts and
Spirit and Spunk, from one and all, to topple the
way things may have been for many generationsand
who inspire us to venture forth into todays and
tomorrows whitewater with Insouciance and
Bravado and Determination.TP
73
2A. Re-imagine Tomorrows Organizations
Itinerant Potential Machines.
74
The Case for IPMs (Itinerant Potential
Machines)It is almost impossible to take
action to prevent something that hasnt occurred
previously Judge Richard Posner, The 9/11
Report A Dissent/New York Times
75
TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal if youre
stretching. Want to make their bones in the
revolution.Love the new technologies. Well
rewarded. Dont plan to be around 10 years from
now.
76
TALENT POOL PLUS. Seek out and work with
worlds best as needed (its often needed). We
aim to change the world, and we need gifted
colleagueswho well may not be on our payroll.
77
ALLIANCE MANIACS. Dont assume that the best
resides within. WORK WITH A SHIFTING ARRAY OF
STATE-OF-THE-ART PARTNERS FROM ONE END OF THE
SUPPLY CHAIN TO THE OTHER. Including vendors
and consultants and especially PIONEERING
CUSTOMERS who will pull us into the future.
78
TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet at Internet speed.
Reluctant to work with those who dont share
this (radical) vision.
79
BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont
knowand then unleash the TALENT. Have a vision
to be DRAMATICALLY DIFFERENTbut dont expect the
co. to be around forever. Will scrap pet
projects, and change course 180 degreesand take
a big write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT
REGRETS AT TIME WASTED ON ME TOO PRODUCTS
AND PROJECTS.
80
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
Visionary leaders matched by leaders with
shrewd business sense HOW DO WE TURN A PROFIT
ON THIS GORGEOUS IDEA? Appreciate market
creation as much as or more than market share
growth. ARE INSANELY AWARE THAT MARKET LEADERS
ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT
MARKET SHARE WILL NOT PROTECT US, IN TODAYS
VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND
KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Case. Etc.)
81
POTENTIAL MACHINES-ORGANISMS. Dont know whats
coming next. But are ready to jump at
opportunities, especially those that
challenge-overturn our own way of doing things.
82
II. NEW BUSINESS. NEW TECH.
83
3. Re-imagine IS/ IT/ the WebNo Room for Wimps!
84
E-commerce is happening the way all the hype
said it would. Internet deployment is happening.
Broadband is happening. Everything we ever said
about the Internet is happening. And it is very,
very early. We cant even glimpse ITs potential
in changing the way people work and live. Andy
Grove (BusinessWeek/August 2003)
85
Productivity!McKesson 2002-2003 Revenue 7B
Employees 500Source USA Today/06.14.04
86
Most of what I see is elimination of the middle
people. Lee Scott, CEO, WalMart, on the
relentless drive to even further reduce costs
(Christmas tree lights at Asda v. WalMart USA
21 v 6, same factory)
87
Our entire facility is digital. No paper, no
film, no medical records. Nothing. And its all
integratedfrom the lab to X-ray to records to
physician order entry. Patients dont have to
wait for anything. The information from the
physicians office is in registration and vice
versa. The referring physician is immediately
sent an email telling him his patient has shown
up. Its wireless in-house. We have 800
notebook computers that are wireless. Physicians
can walk around with a computer thats
pre-programmed. If the physician wants, well go
out and wire their house so they can sit on the
couch and connect to the network. They can review
a chart from 100 miles away. David Veillette,
CEO, Indiana Heart Hospital (HealthLeaders/12.2002
)
88
MIT Everyware EVERY LECTURE, EVERY QUIZ, ALL
ONLINE, FOR FREE. MEET THE GLOBAL GEEKS GETTING
AN MIT EDUCATION, OPEN SOURCE-STYLE.
Headline/Wired/09.03
89
e-piphanyepicurious.com
90
Dan Rather!
91
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
92
IS/IT is strategy!
93
5 F500 have CIO on Board While some of the
worlds most admired companiesTesco,
WalMartare transforming the business landscape
by including technology experts on their boards,
the vast majority are missing out on ways to
boost productivity, competitiveness and
shareholder value.Source Burson-Marsteller
94
3A. Re-imagine IS/ IT/ the WebDirect!
95
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
96
MassNarrowcast1t1 DBM/CRM1t1 Web1t1
Direct Mail1t1 Telemarketing1t1 Door-to-door
Reps1t1 MLM
97
Growth Projections 2003-2010Narrowcast media
13.5Mass media 3.5Source Sanford C.
Bernstein Co
98
Money that used to go for 30-second network
spots now pays for closed-circuit sports
programming piped into Hispanic bars and for ads
in Upscale, a custom-published magazine
distributed to black barbershops. We are a big
marketerwe are not a mass marketer, says
Lawrence Light, McDonalds chief marketing
officer. BW/0704
99
Old
NewConsumers Couch
potatoes, passively Empowered media users
control receive
whatever the and shape the
content, thanks
networks broadcast to TiVo, iPod
and the Internet
Aspirations To keep up with the crowd
To stand out from the crowd TV Choice
Three networks plus a Hundreds of
channels, plus PBS
station, maybe video on
demandMagazines Age of the big
glossies Age of the special interest
Time, Life, Look and
A magazine for every hobby
Newsweek
and affinity groupAds
Everyone hums the Talking to a
group of one
Alka-Seltzer jingle Ads go ever
narrowerBrands Rise of the big,
ubiquitous Niche brands, product extensions
brands, from Coca-Cola
and mass customization mean
to Tide
lots of new variationsSource
BusinessWeek/07.12
100
Direct Sellings Potent Promise -- This
industry is global and is growing
exponentially. Roger Barnett, investment banker
specializing in direct selling-- DSA 175,000
Americans sign up per week (475,000 world
wide)-- All industries (wellness, telecoms,
financial services Crayolas Big Yellow
Box)-- Global Avon, 70 Tupperware, 75
China India huge-- MLMs share of direct
selling 56 in 1990 to 82 in 2003
101
DIM/Self-service Rules!ATMsCheckoutPhonesSpee
dpassThe Web (eBay, Amazon,Travelocity,
Mapquest, banking et al.)HR, Project management,
etc.Minus 1.3M secretaries
102
Self-serve Nation!Radisson check-in via Web up
to 1-week prior to arrivalHoliday Inn computer
menu, also keeps track bill and a running total
of calories and carbsHilton roaming check-in
clerks, WiFi-enabledSource USA Today/08.31.04
103
4. Re-imagine Jobs The White Collar Bloodbath.
104
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
105
I was described in public as a radical by a
senior Japanese official, during a Summer 2004
conference in Nagano. (Actually, which I guess
even amplifies the label, he was a
Japanese-American, who spent much of his career
in Silicon Valley.) I retorted sharply that I was
no such animal! Alas, hed been taking detailed
notes during my presentation. But didnt you say
you could readily imagine a 50 billion
corporation, perhaps in pharmaceuticals, which
had only two full-time employeesyou and one
other. And outsourced everything else? Then he
added that one of the two would, of course, be a
woman.
106
Ford Vehicle brand owner (design, engineer,
and market, but not actually make)Source The
Company, John Micklethwait Adrian Wooldridge
107
Not out sourcingNot off shoringNot near
shoringNot in sourcingbut Best Sourcing
108
III. NEW BUSINESS. NEW VALUE PROPOSITION.
109
5. Re-imagine the Organization The Professional
Service Firm (PSF) Imperative.
110
Sarah Daddy, what do you do?Daddy Im a
cost center.
111
So what will be the Basic Building Block of the
New Org?
112
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
113
DD21M
114
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)
115
6. Re-imagine Business Basic Value Proposition
PSFs Unbound/ The Solutions Imperative.
116
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
117
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
118
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
119
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
120
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).
121
Sam Palmisanos strategy is to expand techs
borders by pushing usersand entire
industriestoward radically different business
models. The payoff for IBM would be access to an
ocean of revenuePalmisano estimates it at 500
billion a yearthat technology companies have
never been able to touch. Fortune/06.14.04
122
By making the Global Delivery Model both
legitimate and mainstream, we have brought the
battle to our territory. That is, after all, the
purpose of strategy. We have become the leaders,
and incumbents IBM, Accenture are followers,
forever playing catch-up. However, creating a
new business innovation is not enough for rules
to be changed. The innovation must impact
clients, competitors, investors, and society. We
have seen all this in spades. Clients have
embraced the model and are demanding it in even
greater measure. The acuteness of their
circumstance, coupled with the capability and
value of our solution, has made the choice not a
choice. Competitors have been dragged kicking and
screaming to replicate what we do. They face
trauma and disruption, but the game has changed
forever. Investors have grasped that this is not
a passing fancy, but a potential restructuring of
the way the world operates and how value will be
created in the future.Narayana Murthy,
chairmans letter, Infosys Annual Report 2003
123
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)
124
SCS/Supply Chain Solutions 750 locations
2.5B fastest growing division 19 acquisitions,
including a bankSource Fast Company/02.04
125
Omnicom 60 (of 7B) from marketing services
126
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
127
IV. NEW BUSINESS. NEW BRAND.
128
7. Re-imagine Enterprise as Theater I A World
of Scintillating Experiences.
129
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
130
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
131
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
132
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
133
WHAT CAN BROWN DO FOR YOU?
134
The Experience LadderExperiences
ServicesGoods Raw Materials
135
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
136
Now Youve Heard It All We want our branches
to be a place where people come as a
destination. Amy Brady, on the BofA effort to
learn from Starbucks and Gap (The Fun
Factor/The Boston Globe/08.30.04
137
Moving CompaniesWSJ/08.2003 In Texas, Theyll
fill your empty fridge with brie and wine. An
outfit in New York promises quick high-speed
Internet hookup. And when Allied Van Lines
finishes unloading your couch, theyll have a
feng shui expert figure out the right spot.
138
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
139
1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
140
Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
141
Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
142
First Step (?!) Fire one accountant. Hire one
theater director!
143
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, Unique Now ... or Never
on the excellence of Nokia, Nike, Lego, Virgin
et al.
144
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
145
Extraction Goods Male dominanceServices
Experiences Female dominance
146
Women dont buy brands. They join
them.EVEolution
147
8. Re-imagine Enterprise as Theater II
Embracing the Dream Business.
148
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
149
The Marketing of Dreams (Dreamketing)Drea
mketing Touching the clients dreams.Dreamketing
The art of telling stories
and entertaining.Dreamketing Promote the
dream, not the
product.Dreamketing Build the brand around
the main dream.Dreamketing
Build the buzz, the
hype, the cult.Source Gian Luigi
Longinotti-Buitoni
150
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
151
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
152
(Revised) Experience LadderDreams Come True
Awesome ExperiencesSolutionsServicesGoodsRaw
Materials
153
9. Re-imagine the Soul of Enterprise Design
Rules!
154
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
155
Design is treated like a religion at
BMW.Fortune
156
Design is
157
Design is SURPRISE!
158
Ralph Kaplan, By Design What effects us so
strongly when we see an MG or a beautifully
balanced knife is that someone has pleased us by
making what we wanted and never knew we wanted.
159
DESIGN transforms the perception of whats
possible. E.g. Plate-glass windows. Apple II.
160
Great design One-page business plan (Jim Horan)
161
First Steps Beauty Contest!
  • Select one form/document invoice, air bill, sick
    leave policy, customer returns-claim form.
  • 2. Rate the selected doc on a scale of 1 to 10
    1 Bureaucratica Obscuranta/ Sucks 10 Work
    of Art on four dimensions Beauty. Grace.
    Clarity. Simplicity.
  • 3. Re-invent!
  • 4. Repeat, with a new selection, every 15
    working days.

162
Design Character (which is why knock offs are
so easy to see through) (Design WHO ARE WE?!)
163
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
164
Design is why it takes a year to do a
165
!
166
Message (?????) Men cannot design for womens
needs.
167
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)
168
User STOP BLAMING YOURSELF! (Don
Norman/Design of Everyday Things)
169
Step No. 1 NOTEBOOK POWER!Start recording the
awesome the awful
170
I love stuff I love.I hate stuff I hate.I
take my loves and hates seriously.DESIGN is the
principal difference between the two reactions.
171
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer 2002
172
Thomas Hine The Total Package The Secret
History and Hidden Meanings of Boxes, Bottles,
Cans and Other Persuasive Containers
173
The most fundamental difference between a
traditional market and the places through which
you push your cart is that in modern retailing
all the selling is done without people. It
replaces people with packages. Thomas Hine/The
Total Package
174
Packages have personality. They create
confidence and trust. They spark fantasies. They
move the goods! Thomas Hine/The Total Package
175
Oatmeal/1870 horses and a few stray
ScotsOatmeal/1890/Quaker a delicacy for the
epicure, a nutritious dainty for thr invalid, a
delight to the childrenDifference
Packaging!Thomas Hine/The Total Package
176
Whats important to recognize is that fast-food
and hotel chains are not like packages, but that
they are packagespackaged places and
experiences. Thomas Hine/The Total Package
177
10. Re-imagine the Fundamental Selling
Proposition It all adds up to THE BRAND.
178
The Heart of Branding
179
WHO ARE WE?
180
WHATS OUR STORY?
181
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
182
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
183
Doug Hall, PG vet and long-time proprietor of
Eureka Ranch, is my favorite marketing guru. One
reason is his ... Declaration of Dramatic
Difference. Well, he doesnt call it thatI do.
In Jump Start Your Business Brain, Hall gives us
his Three Laws of Marketing Physics. The Law of
Dramatic Difference is number three. It goes this
way. Prospective customers evaluate a new
product. Then theyre asked (1) if theyd buy it
and (2) if they see it as unique. The firms
execs in turn evaluate and weigh the prospective
customers reactions. Without fail, the execs
deciding to launch or not bet close to
one-hundred of their marbles on the intent-to-buy
question, and virtually ignore the uniqueness
issue. The problem, or should I say THE
PROBLEM In actual fact the intent-to-buy
response is a poor predictor of subsequent
real-world success (or failure), while the
uniqueness assessment almost perfectly predicts
the true response to the product.
184
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
185
EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
186
Rules of Radical MarketingLove Respect Your
Customers!Hire only Passionate
Missionaries!Create a Community of
Customers!Celebrate Craziness!Be insanely True
to the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
187
10A. Re-imagine 2004 Excellence Found!
188
And the Winner is 1.
Audacity of Vision2. Innovation/RD/Design3.
Talent Acquisition Development4. Resultant
Experience5. Strategic Alliances6.
Operations7. Financial Management8.
Overall/Sustaining Excellence9. Wow!
189
Cirque du Soleil!
190
Cirque du Soleil Talent (12 full-time scouts,
database of 20,000). RD (40 of profits 2X
avg corp). Controls (shows are profit centers
partners like Disney offset costs 100M on
500M). Scarcity builds buzz/brand (1 new show
per year. People tell me were leaving money on
the table by not duplicating our shows. Theyre
right.Daniel Lamarre, president).Source The
Phantasmagoria Factory/Business 2.0/1-2.2004
191
V. NEW BUSINESS. NEW MARKETS.
192
11. Re-imagine the Customer I Trends Worth
Trillion Women Roar.
193
?????????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
194
Business Purchasing PowerPurchasing mgrs.
agents 51HR gtgt50Admin officers
gt50Source Martha Barletta, Marketing to Women
195
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
196
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)
197
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.
198
Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
199
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
200
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
201
How many men does it take to change a roll of
toilet paper?Its unknown. Its never
happened.Source Allan Pease Barbara Pease,
Why Men Can Only Do One Thing at a Time and Women
Never Stop Talking
202
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
203
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
204
Stress Men
Fight or flee Women Seek the company of
friendsSource UCLA, Female
Response to Stress Tend and Befriend, Not Fight
or Flight/Psychological Review90 of stress
research men
205
I only really understand myself, what Im really
thinking and feeling, when Ive talked it over
with my circle of female friends. When days go by
without that connection, I feel like a radio
playing in an empty room.Anna Quindlen
206
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
207
Women are more comfortable talking or thinking
about people and relationships, while men prefer
to contemplate things. research reported in the
New York Times (08.10.2003)
208
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
209
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
210
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
211
Women dont buy brands. They join
them.EVEolution
212
Purchasing PatternsWomen Harder to convince
more loyal once convinced.Men Snap decision
fickle.Source Martha Barletta, Marketing to
Women
213
2.6 vs. 21
214
War has broken out over your home-improvement
dollar, and Lowes has superpower Home Depot on
the defensive. Its not-so-secret ploy Lure
women. Forbes.com
215
Volvo Teams Up to Build What Women Want Concept
Car Goes for Great Storage, Easy Maintenance
headline/USA Today/12.16.2003/140-person
team80 women
216
Cents Sensibility Our advisory sessions
with women changed from a purely analytical,
male approach to something that starts with the
heart and ends with the figures.
217
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.
218
And even if they manage to get the age thing
right, Marti Barletta says companies still tend
to screw up in fairly predictable ways when they
add women to the equation. Too often, their first
impulse is to paint the brand pink, lavishing
their ads with flowers and bows, or, conversely,
pandering with images of women warriors and other
cheesy clichés. In other cases they use language
intended to be empathetic that come across
instead as borderline offensive. One bank took
out an ad saying, We recognize womens special
needs, says Barletta. No offense, but doesnt
that sound like the Special Olympics? Fast
Company/03.04
219
Five Clichés of Women (as Portrayed by
Advertisers) Perfect MumAlpha
FemaleFashionistaBeauty BunnyGreat
GrannySource The Independent /09.29.04 (on
forthcoming First London Think Pink Conference
220
Unilever brand Doves use of six generously
proportioned real women to promote its
skin-firming preparations must qualify as one of
the most talked-about marketing decisions taken
this summer. It was also one of the most
successful Since the campaign broke, sales of
the firming lotion have gone up 700 percent in
the UK, 300 percent in Germany and 220 percent in
the Netherlands. Financial Times/09.29.04
221
Secrets of Marketing to Women1.
Show her real women and reliable scenarios.2.
Focus on connection and teamwork.3. Capture her
imagination by using stories.4. Make it
multisensory.5. Add the little extras.6. Tap
the emotional power of music.7. Create customer
evangelists.8. Form brand alliances.
Source Lisa Johnson Andrea Learned, Dont
Think Pink What Really Makes Women Buy
and How to Increase Your
Share of This Crucial Market
222
12. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
223
2000-2010 Stats18-44 -155 21(55-64
47)
224
44-65 New Consumer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
225
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
226
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
227
Tap into a midlife womans renewed sense of
self, and your cash registers are likely to start
ringing Headline/Fast Company/03.04
228
Sixty Is the New Thirty Cover/AARP/11.03
229
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
230
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
231
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)
232
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
233
Net Worth Household Heads 55-64 15X
lt35Source U.S. Census/WSJ
234
The mature market cannot be dismissed as
entrenched in its brand loyalties. Carol Morgan
Doran Levy, Marketing to the Mindset of Boomers
and Their Elders
235
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
236
Possession Experiences /Desires for
things/Young adulthood/to 38Catered
Experiences/ Desires to be served by
others/Middle adulthoodBeing
Experiences/Desires for trancending
experiences/Late adulthoodSource David Wolfe
and Robert Snyder/Ageless Marketing
237
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
238
No Target MarketingYes Target Innovation
Target Delivery Systems
239
Marketing to Women, Martha BarlettaEVEolution
The Eight Truths of Marketing to Women, Faith
Popcorn Lys Marigold Dont Think Pink What
Really Makes Women Buy, Lisa Johnson and Andrea
Learned Ageless Marketing, David Wolfe Robert
SnyderMarketing to the Mindset of Boomers and
Their Elders, Carol Morgan Doran LevySelling
Dreams How to Make Any Product Irresistible,
Gian Luigi Longinotti-BuitoniThe Dream Society
How the Coming Shift from Information to
Imagination Will Transform Your Business, Rolf
JensenTrading Up The New American Luxury,
Michael Silverstein Neil Fiske
240
12A. Re-imagine the Customer III The Hunch of a
Lifetime!?
241
The Hunch of a Lifetime An
Emergent (Market) Nexus I have a sense/hunch
theres an interesting nexus among several of the
ideas about New Market Realities that I promote
namely Women-Boomers-Wellness-Green-Intangibles.
Each one drives the Fundamental (Traditional)
Economic Value Proposition toward the softer
side From facts- figures-obsessed males
toward relationship-oriented Women. From
goods-driven youth toward experiences-craving
Boomers. From quick-fix pill-popping
healthcare toward a holistically inclined
Wellness Revolution. From mindless exploitation
of the Earths resources toward increased
awareness of the fragility and preciousness of
our Environment. From goods and services
toward Design- Creativity-rich
Intangibles-Experiences-Dreams Fulfilled. This
so-called softer sideas the disparate likes of
IBMs Sam Palmisano and Harley-Davidsons Rich
Teerlink teach usis now increasingly where
the loot is, damn near all the loot. That is,
the softer side has become the Pri
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