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/
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/ )
One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India. Source: The Straits Times/
Thaksinomics (after Thaksin Shinawatra, PM)/ Bangkok Fashion City: managed asset reflation (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/
1. Re-imagine Permanence: The Emperor Has No Clothes!
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 S&P 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 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
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
Re-imagine General Electric Welch was to a large degree a growth by acquisition 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
Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth a marvel of earnings consistency. Immelt hasnt turned his back on the old ways. But in his GE, the new imperatives are risk-taking, sophisticated marketing and, above all, innovation.BW/032805
Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companies those that failed to make a leap or, if they did, failed to sustain itoften tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness. Jim Collins/ Time/
I dont believe in economies of scale. You dont get better by being bigger. You get worse. Dick Kovacevich/ Wells Fargo/Forbes (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)
No Wiggle Room! Incrementalism is innovations worst enemy. Nicholas Negroponte
Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things. Roger Enrico, former Chairman, PepsiCo
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
Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec
Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher (out of 10) on a Weirdness/Profundity/ Game-changer Scale?
Kevin Roberts Credo 1. 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!
Sir Richards Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson/10.03
The SE22: Origins of Sustainable Entrepreneurship
SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of todays $$$ winners (Apple, Cirque du Soleil, Microsoft, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use Strategic Thrust Overlays to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a Be on the COOL Team Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically Noisy (Intel, Apple, Microsoft, CitiGroup, PepsiCo) 8. Culturally as well as organizationally Decentralized (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo, Time Warner)
SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizingtireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partnersespecially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Dont overdo pursuit of synergy (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it … dont obsess on how it fits the business model. (3M, J & J) 15. Find and Encourage and Promote Strong-willed/Hyper- smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs/Intrapreneurs (3M, Microsoft) 17. Ferret out Talent … anywhere and everywhere/No limits approach to retaining top talent (Nike, Virgin, GE, PepsiCo)
SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 21. Bi-polar Top Team, with Unglued Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)
3. Re-imagine the Roots of Innovation: THINK WEIRD … the High Value Added Bedrock.
Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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
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
Employees: Are there enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director
Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us- who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky timessee immediately above.) (5) Freaks are the only (ONLY) ones who succeedas in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of usand our organizationsare in ruts. Make that chasms.)
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
Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D spending!* *Inspired by Hummingbird
The Bottleneck is at the Top of the Bottle Where 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
4. Re-imagine Organizing I: IS/IT as Disruptive Tool!
We all live in Dell-Wal*Mart- eBay-Google World!
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
5. Re-imagine Organizing II: What Organization?
Organizations will still be critically important in the world, but as organizers, not employers! Charles Handy
07.04/TP In Nagano … Revenue: $10B FTE: 1* *Maybe
Not out sourcing Not off shoring Not near shoring Not in sourcing but … Best Sourcing
6. Re-imagine Organizing III: The White-Collar Tsunami and the Professional Service Firm (PSF) Imperative.
E.g. … Jeff Immelt: 75% of admin, back room, finance digitalized in 3 years. Source: BW ( )
Hospital Services Performed Overseas headline, Washington Post/ When patients needed urgent CT scans, MRIs and ultrasounds late at night at St. Marys Hospital in Waterbury CT, emergency room workers used to rouse a bleary-eyed staff radiologist from his bed to read the images. Not anymore. The work now goes to Arjun Kalyanpur8,000 miles away in Bangalore …
Sarah: Papa, what do you do? Papa: Im overhead.
Sarah: Papa, what do you do? Papa: I manage a cost center.
Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
The PSF35 : Thirty-Five Professional Service Firm Marks of Excellence
The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (Every Practice Group: If you cant explain your position in eight words or less, you dont have a positionSeth Godin) 2. DRAMATIC DIFFERENCE (We are the only ones who do what we doJerry Garcia) 3. Stretch Is Routine (Never bite off less than you can chewanon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling Best TeamFast) 5. Playful Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small Uneconomic Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: Dent the UniverseSteve Jobs) 9. Fire-on-the-spot Anyone Who Says, Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a commodity 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) RADICAL
The PSF35: The Client Experience 11. Always team with client: full partners in achieving memorable results (Wanted: Chimeras of Moonstruck Minds!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was the Peak Experience of my Career 14. The jobs not done until implementation is % complete (Those who dont get it must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED CULTURE CHANGE 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT (Teach a man to fish …) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?
The PSF35: The People & The Leadership 18. TALENT FANATICS (Best-Coolest place to work) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond same old, same old) 20. Early Opportunities (vs. Wait your turn) 21. Up or Out (Based on Legacy/Mentoring as much as Billings/Rainmaking) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #R [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills 25. A PROPRIETARY TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views
The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (My life is my messageGandhi) 29. Excellence+ in EXECUTION … % of the Time (No such thing as a small sins/World Series Ring to the Batboy!) 30. Drop everything/Swarm to Support a Harried-On The Verge Team 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEIL 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. Web (Technology) Obsession 34. BRAND/LOVEMARK MANIACS (Organize Around a Point of View Worth BROADCASTING: You must be the change you wish to see in the worldGandhi) 35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as much a place at the Head Table in a PSF as in a widgets factory: You cant behave in a calm, rational manner. Youve got to be out there on the lunatic fringeJack Welch)
1. REFRAME: NEVER... EVER!... ACCEPT A PROJECT/ASSIGNMENT AS GIVEN! 2. TRANSLATE YOUR DAILY EXPERIENCES INTO COOL STUFF TO DO. 2A. Become a Benchmarking Fanatic: LOOK at every-small-thing-that-happens-to- you as a Golden Learning Opportunity. 3. Improve your vocabulary! Learn to love WOW! Use the word. WOW! 4. There are no small projects: IN EVERY LITTLE FORM OR PROCEDURE, IN EVERY LITTLE PROBLEM THERE USUALLY LURKS A B-I-G PROJECT! 4A. CONVERT today's annoying chore into a WOW! Project. THE B-I-G IDEA: THERE'S NO SUCH THING AS A GIVEN. 5. Put on the brakes! DONT BETRAY WOW! 6. LOVE MAKES THE WORLD GO ROUND! 7. Will itthe project, our babybe beautiful? Yes... BEAUTIFUL! 8.Design-Is-It. I.e.: One of the single most powerful forces in the whole bloody universe. 9. IS THE PROJECT REVOLUTIONARY? (ARE YOU SURE?)
The Project Is the Web factored into the project? In a b-i-g way? 11. Impact. Henry James asked this, as his ultimate question, of an artist's work: Was it worth doing? 11A. Made Anybody(s) Angry Lately? 12. RAVING FANS! 12A. Women-as-Raving Fans. Women take to products/servicesand, thence, project deliverablesfor (very) different reasons than men. 13. Pirates-on-the-high-seas. We are on a Mission/Crusade. We plan to upset the applecart (convention wisdom) Big Time... and Make a Damn Difference. 14. If you can (hint: you can!), create a place. That Is... Pirates Need Ships at Sea and Caves on Land. (Safe Houses in Spy-speak.) 15. Put it in your resume. NOW! PICTURE YOURSELF CROSSING THE FINISH LINE. 16. THINK RAINBOW! 17. THINK... OR RETHINK... OR REFRAME... YOUR CONCEPT... INTO A BUSINESS PLAN. 18. Think/obsess... D-E-A-D-L-I-N-E. Be ridiculously/absurdly/insanely demanding of yourself/your little band of renegades.
The Project Find a Wise Friend. WOW Projects Aint Easy! They Stretch You, Stress You, and Often Vex You. And the Organization. 20. FINDAND THEN NURTUREA FEW (VERY FEW) CO-CONSPIRATORS. 20A. Find at least one user/co-conspirator. NOW. Think user from the start. 21. Consider carrying around a little card that reads: WOW! BEAUTIFUL! REVOLUTIONARY! IMPACT! RAVING FANS! 22. Be S-U-C-C-I-N-C-T. Describe your project (its benefits and its WOW!) in T-H- R-E-E minutes. 22A. METAPHOR TIME! The pitchand every aspect of the projectworks best if there is a compelling theme/image/hook that makes the whole thing cohere, resonate, and vibrate with life. 23. SALES MEANS SELLING... EVERYONE! 24. Hey: WOW Project Life = Sales. Right? So... WORK CONSCIOUSLY ON BUZZ. GET VISIBLE AND STAY VISIBLE. 25. Do your Community Work. Start to Expand the Network! ASAP.
The Project Last is as good as first. If they support you... they are your friends. 27. Preach to the choir! Never forget your friends! 28. Don't try to convert your enemies. Dont waste time on them. 29. CREATE AN A-TEAM ADVISORY BOARD. 30. Become a Master Bootstrapper. You heard it here first: Too much initial money... kills! 31. Think B-E-T-A! As in... Beta Site(s). You need customer-partners... as safe- haven testing grounds for rough prototypes. 32. CHUNK! CHUNK! CHUNK! Weve gotta break itour project, now on the movedown into tidbit/do-it-today/do-it-in-the-next-four-hours pieces. 33. Live... Eat... Sleep... Breathe: Prototype! I.e.: BECOME AN UNABASHED PROTOTYPING FANATIC. 33A. Teach prototyping. Prototyping is a corporate culture issue. I.e.: Work to create a Culture of Prototyping. 34. PLAY! FIND PLAYMATES! 35. Scrunch the Feedback Loops! 36. BLOW IT UP! PLAY... AND DESTRUCTION... ARE HANDMAIDENS.
The Project Keep recruiting! Iron Law: WOW Projects Call for WOW! People. Never stop recruiting! 37A. WANTED: COURT JESTER. 38. Make a B-I-G binder! This is the Project Bible. It's the Master Document... the macro-map. 39. List mania. Ye shall make lists... and the lists shall make ye omniscient. (No joke.) 40. Think (live/sleep/eat/breathe) Timeline/ Milestones. 40A. WANTED: MS. LAST TWO PERCENT! 41. Master the 15-Minute Meeting. You can change (or at least organize) the world in 15 minutes! 42. C-E-L-E-B-R-A-T-E! 42A. CELEBRATE FAILURES! 43. Station break! The keynote here is action. Exactly right! But: Don't allow the action fanaticism to steer you off course re WOW!/Beauty/Revolution/Impact!/Raving Fans. 44. A Project Has an Identity. Its Alive. PROJECT = LIFE... SPIRIT... PERSONALITY.
The Project Cast the Net a Little/Lot Farther Afield. 46. It's the U-S-E-R, stupid! Never lose sight of the user community. 47. Concoct a B.M.P./Buzz-Management Program. Marketing is Implementation. 48. SELL OUT! It's been us against them... and one heck of a ride. But now the time has come to dance with the suits... if we really want full impact. 48A. Recruit a Mr. Follow-up... Who Is as Passionate as You Are! (And L-O-V-E- S Administration.) 49. SEED YOUR FREAKS INTO THE MAINSTREAM... WHERE THEY CAN BECOME MUTANT VIRUSES FOR YOUR (QUIRKY) POINT OF VIEW! 50. Write up the project history. Throw a Grand Celebratory Bash!
7. Re-imagine Businesss Fundamental Value Proposition: PSFs Unbound … Fighting Inevitable Commoditization via The Solutions Imperative.
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
And the M Stands for … ? Gerstners IBM: Systems Integrator of choice. (BW) IBM Global Services: $55B
Planetary Rainmaker-in-Chief [Sam] Palmisanos strategy is to expand techs borders by pushing usersand entire industries toward 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/
Big Browns New Bag: UPS Aims to Be the Traffic Manager for Corporate America Headline/BW/
New York-Presbyterian: 7-year, $500M enterprise- systems consulting and equipment contract with GE Medical Systems Source: NYT/
Customer Satisfaction to Customer Success Were 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
Bear In Mind: Customer Satisfaction versus Customer Success
Beyond the Transaction Mentality Good hotel/ Happy guest vs. Great Vacation/ Great Conference/ Operation Personal RenewalGood to Be Home
8. Re-imagine Enterprise as Theater I: A World of Scintillating Experiences.
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
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
The Experience Ladder Experiences Services Goods Raw Materials
The Experience Ladder/TP Experiences Solutions/Success Services Goods Raw Materials
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.]
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 itsHo-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
Tom Ps Hotel10 / Brand Distinction (dramatic difference or bust) must be … Crystal Clear. 2. SPARE NO EXPENSE IN FINDING THE BEST (AWESOME) PROPERTY MANAGER. 3. The individual propertys Point of View must be Clear to One & All. (Beyond the generic brand promise.) 4. Aim Strategically at WOMEN as Guests & Meeting Planners. 5. Aim directly at BOOMERS & GEEZERS. 6. #4 & #5 above call for cultural re-alignment, not mere strategic programs. 7. Never assume youre Okay on the basics. (YOU PROBABLY ARENT.) 8. MBWA (Managing By Wandering Around) is Alive & Well … and applies to Owners! 9 Fortune says Wegmans (groceries!!!) is the # 1 Place to Work in America … WHAT ABOUT/WHY NOT YOUR HOTEL/S? 10. AMAZE ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
9. Re-imagine Enterprise as Theater II: Embracing the Dream Business.
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
The Marketing of Dreams (Dreamketing) Dreamketing: 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
Experience Ladder/TP Dreams Come True Awesome Experiences Solutions/Success Services Goods Raw Materials
The Ritz-Carlton experience enlivens the senses, instills well- being, and fulfills even the unexpressed wishes and needs of our guests. from the Ritz-Carlton Credo
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. … 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 Society:How the Coming Shift from Information to Imagination Will Transform Your Business
10. Re-imagine the Soul of New Value: Design Rules!
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
Design is treated like a religion at BMW. Fortune
Having spent a century or more focused on other goals solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energywe are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, were adding sensory, emotional appeal to ordinary function. Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness
Marketing Magic* The Missing 95%: The Unconscious! *E.g. ZMET/Zaltman Metaphor Evaluation Technique
Hypothesis:Design is the principle metaphor for the encompassing Value- added Imperative!
Design at Apple/Starbucks/ BMW is a state of mind [cultureTP], not a program. Tom Kelley/IDEO
Better By Design The Design49 Tom Peters/Auckland/30March2005
Better By Design: Toms Design49 1. There are only 2 rules. 2. Rule #1: You cant beat Wal*Mart on price or China on cost. 3. Rule #2: See Rule #1. 4. Econ Survival = Innovate and Sprint Up the Value-added Chain … OR DIE! 5. DESIGN (WRIT LARGE) (DESIGN MINDFULNESS) IS THE SOUL/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE. 6. Design as Soul-Core Competence #1 is a cultural imperative, not a programmatic or process or throw $$$ at it issue! 7. CDEs (Culturally Design-driven Enterprises) use Design- Experiences-Dream Merchantry-Lovemarks as the Lead Dog(s) in the Olympian Innovation-Strategy-Value Proposition Struggle. 8. Dream Merchant makes as much sense for IBM or GE or UPS as for Starbucks!
Better By Design: Toms Design49 9. At CDEs, Design is the Heart of the Emotional Branding Process. 10. CDEs wholeheartedly embrace ideas such as mystery, surprise, sensuality. 11. CDEs love WOW! and B.H.A.G. and Insanely Great and Gasp-worthy and Passion and Love! (Axiom: Extreme language breeds extreme products and services.) 12. Staff at CDEs laugh and cry a lot! (Axiom: Calm enterprise = Crappy enterprise.) 13. CDEs love strange and weird. 14. CDEs scour the earth for strange and weird people. (CDEs know: FREAKS RULE!) 15. CDEs are extremists. (KR: Avoid moderation.) 16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH! (We must use non-linear measures!)
Better By Design: Toms Design CDEs seek Discontinuities. (JG: We dont want to be the best of the best, we want to be the only ones who do what we do.) 18. CDEs are respectful of their customers, but not slaves to their customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: Listening to customers is over-rated! Focus groups suck!) 19. But: Lead customers are an entirely different matter! 20: Yet: CDEs turn customers into Raving Fans. (Think: Tattoo Brand!) 21. CDEs abide by Phil Daniels Credo: REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES. 22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she is the CEO). 23. Design Directors at large companies not worth $5,000,000 per year arent worth hiring! (DD$21M.)
Better By Design: Toms Design Great Designers are 10,000X better than good designers. 25. At CDEs CFOs are never former CFOs! The CEO always doubles as the Chief Innovation Officer. 26. CDEs are Top-line Obsessed. 27. CDE execs know there is a chasm between excellent design and game-changer design. 28. Gasp-worthy design is a moving target! 29. No Broadway shows last forever. So too, great designers! (Hire them! Pay them! Cherish them! Nurture them! Fire them!) 30. Great design wrestles incessantly with the issue of cool and/versus usability.! 31. Designers get the stunning principles of Wabi Sabi. (Great designers side with Chris Alexander against the A.I.A.) 32. CDEs get the feminine side of life.
Better By Design: Toms Design CDEs Know I: WOMEN BUY EVERYTHING! 34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. 35. CDEs understand that Were getting olderand vigorously embrace the Boomer-Geezer market. 36. CDEs understand: Boomers-Geezers have ALL THE MONEY … are by and large healthy … and have 20 or so years left! 37. CDEs wonder: Can 28-year-olds design experiences for 68- year-olds? 38. CDEs seek the sweetest sweet spot: Woman-Boomer- Greenie-Wellness. 39. Design-mindfulness is as apparent in the CDEs facilities as in its products-services!
Better By Design: Toms Design Design mindfulness is as apparent in HR and Engineering and Logistics and IS/IT as in NPD. 41. CDEs will settle for nothing less then beautiful, gasp-worthy Business Processes/Infrastructure! 42. CDEs obsess on K.I.S.S. (Beware creeping feature- itis!) (450/8.) 43. Design-mindfulness/aesthetic sensibility is a requisite for Every Hireincluding waiters and waitresses in Fast Food outlets and Housekeepers in hotels. 44. Gasp-worthy Design is as essential to service companies as to manufacturers. 45. Gasp-worthy design can transform any commodity, including ag!
Better By Design: Toms Design DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER. 47. Small is no disadvantage in an Age of Creativity! 48. There is no such thing as a National Design Advantage unless the current school system is Destroyed & Re-imaginedto emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness … the suppression thereof … typically begins at Age 4.) 49. How sweet it is! (If your head is screwed on right.)
11. Re-imagine the Fundamental Selling Proposition: It all adds up to … (THE BRAND.) (THE STORY.) (THE DREAM.) THE LOVE.
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
12. Re-imagine the Customer I: Trends Worth Trillion$$$ … Women Roar.
????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major home projects) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%
91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women)
FemaleThink/ Popcorn & Marigold Men 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.
Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK)
Initiate Purchase Men: Study facts & features. Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women
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 Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity No. 1.
44-65: New Customer Majority * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder
The New Customer 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
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
14. Re-imagine the Individual: Welcome to a Brand You World … Distinct or Extinct
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
New Work SurvivalKit Mastery! (Best/Absurdly Good at Something!) 2. Manage to Legacy (All Work = Memorable/Braggable WOW Projects!) 3. A USP/Unique Selling Proposition (R.POV8: Remarkable Point of View … captured in 8 or less words) 4. Rolodex Obsession (From vertical/hierarchy/suck up loyalty to horizontal/colleague/mate loyalty) 5. Entrepreneurial Instinct (A sleepless … Eye for Opportunity! E.g.: Small Opp for Independent Action beats faceless part of Monster Project) 6. CEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!) 7. Mistress of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring interesting you to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. Embrace Marketing (Your own CSO/Chief Storytelling Officer) 12. Passion for Renewal (Your own CLO/Chief Learning Officer) 13. Execution Excellence! (Show up on time! Leave last!)
Getting Things Done: The Power & Implementation 34.
*Send Thank You notes! Its (always) all about relationships. And at the Heart of Effective Relationships is … APPRECIATION. (Oh yeah: Never, ever forget a birthday of a co-worker.) *Bring donuts! Small gestures of appreciation (on a rainy day, after a long days work the day before) are VBDs … Very Big Deals. *Make the call! One short, hard-to-make call today can avert a relationship crisis that could bring you down six months from now. *Remember: There are no little gestures of kindness. As boss, stopping by someones cube … for 30 seconds … to inquire about their sick parent will be remembered for … 10 years. (Trust me.) *Make eye contact! No big deal? Wrong! It is all about … Connection! Paying attention! Being there … in the Moment … Present. So, work on your eye contact, your Intent to Connect. *Smile! Or, rather: SMILE. Rule: Smiles beget smiles. Frowns beget frowns. Rule: WORK ON THIS. *Smile! (If it kills you.) Energy & enthusiasm & passion engender energy-enthusiasm-passion in those we work with.
*Its all … RELATIONSHIPS. Remember: Business is a relationships business. (Period.) Were all in sales! (Period.) Connecting! Making our case! Following up! Networking! Relationships are what we do. *You = Your Calendar. Your true priorities are given away by your calendar. YOUR CALENDAR NEVER LIES. What are you truly spending your time on? Are you distracted? Focused? *Whats in a number? EVERYTHING! While we all do a hundred things, we may not/should not/cannot have more than 2 (or 3) true strategic priorities at any point in time. BELIEVE IT. *She (he) who is best prepared wins! Out study, out-read, out-research the competition. Know more (lots more!) than the person on the other side of the table. *Excellence is the Ultimate Cool Idea. The very idea of pursuing excellence is a turn onfor you and me as well as those we work with. (And, I find to my dismay, its surprisingly rare.) *Think WOW! Language matters! Hot words generate a Hot Team. Watch your language! *Take a break! We need all the creativity we can muster these days. So close your office door and do 5 (FIVE) minutes of breathing or yoga; get a bag lunch today and eat it in the park.
*You are the boss! Old ideas of lifetime employment at one company (maybe where Dad/Mom worked) are gone. No matter what your current status, think of your self as CEO of Brand Me, Inc. We are all Small Business Owners … of our own careers. *Do something in … the next half hour! Dont let yourself get stuck! There is … ALWAYS … something little you can start/do in the next thirty minutes to make a wee, concrete step forward with a problem-opportunity. *Test it! NOW! We call this the Quick Prototype Attitude. One of lifes, especially business lifes, biggest problems is: Too much talk, too little do. If youve got a Cool Idea, dont sit on it or research it to death. Grab a pal, an empty conference, and start laying out a little model. That is, begin the process of transforming the Idea to Action … ASAP. Incidentally, testing something quarter-baked in an approximation of the real world is the quickest way to learn. *Expand your horizons. Routinely reach out beyond your comfort zone. TAKE A FREAK TO LUNCH TOMORROW! Call somebody interesting youve been meaning to get in touch with; invite them to lunch tomorrow. (Lunch with the same ole gang means nothing new learned. And thats a guarantee.) (Remember: Discomfort = Growth.) *Build a Web site. The Web is ubiquitous. Play with it! Be a presence! Start You.com … ASAP!
*Spread the credit! Dont build monuments to yourself, build them to othersthose whose contributions we wholeheartedly acknowledge will literally follow us into machine gun fire! *Follow Toms patented VFCJ strategy! VFCJ = Volunteer For Crappy Jobs. That is, volunteer for the crummy little assignment nobody else wants, but will give you a chance to (1) be on your own, (2) express your creativity, and (3) make a noticeable mark when it turns out Wow. *VOLUNTEER! Lifes a maze, and you never know whats connected to what. (Six degrees of separation, and all that.) So volunteer for that Community Center fund raising drive, even though youre busy as all get out. You might end up working side-by-side with the president of a big company whos looking for an enthusiast like you, or someone wealthy who might be interested in investing in the small business you dream of starting. *Join Toastmasters! You dont need to try and match Ronald Reagans speaking skills, but you do need to be able to speak your piece with comfort, confidence and authority. Organizations like Toastmasters can help … enormously. *Dress for success! This one is old as the hills and I hate it!! But its true. FIRST IMPRESSIONS DO MATTER. (A lot!!!)
*Follow the Gospel of Experience Marketing in all you do. The shrewdest marketers today tell us that selling a product or service is not enough in a crowded marketplace for everything. Every interaction must be reframed as a … Seriously Cool Experience. That includes the little 15-minute presentation you are giving to your 4 peers tomorrow. *Think of your resume as an Annual Report on Brand Me Inc. Its not about keeping your resume updated. It is about having a Super-cool Annual Report. (Tom Peters Inc 2004.) What are your stunning accomplishments that you can add to that Report each 6 months, or at the most annually? *Build a Great Team … even if you are not boss. Best roster wins, right? So, work on your roster. Meet someone new at Church or your kids birthday party? Add them to your team (Team Tom); you never know when they might be able to assist you or give you ideas or support for something you are working on. *She or he who has the Fattest & and Best-managed Rolodex wins. Your Rolodex is your most cherished possession! Have you added 3 names to it in the last 2 weeks? Have you renewed acquaintance ( , lunch, gym date) with 3 people in your Rolodex in the last month? MANAGE YOUR ROLODEX!
*Start your own business! Sure thats radical. But people are doing it especially womenby the millions. Let the idea percolate. Chat about it, perhaps, with pals. Start a file folder or three on things you Truly Care About … that just might be the basis for Cool Self-employment. *Theres nothing cooler than an Angry Customer! The most loyal customers are ones who had a problem with us … and then marveled when we went the Extra Ten Miles to fix it! Business opportunity No. 1 = Irate customers converted into fans. So … are you on the prowl for customer problems to fix? *All marketing is Relationship Marketing. In business, profit is a byproduct of bringing em back. Thus, systematic and intense and repeated Follow-up and After-sales Service and Scintillating New Hooks are of the utmost importance.
*BRANDING aint just for Big Dudes. This may well be Business Mistake No. 1 … the idea that branding is only for the likes of Coke and Sony and Nike. Baloney! Branding applies as much for the one-person accountancy run out of a spare bedroom as it does for Procter & Gamble. *Credibility! In the end … Character Matters Most. Does he/she give their word, and then stick to it … come hell & high water? Can you rely on Her/Him in a pinch? Does she/he … CARE? *Grace. Is it a pleasure to do business with you? Is it a pleasure to be a member of your team?
16. Re-imagine Excellence I: The Talent Obsession.
Human creativity is the ultimate economic resource. Richard Florida, The Rise of the Creative Class
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
From 1, 2 or youre out [JW] to …Best Talent in each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent
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
In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies. Ed Michaels
Did We Say Talent Matters? The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X. Nathan Myhrvold, former Chief Scientist, Microsoft
The Cracked Ones Let in the Light Our 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
Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP
RE/MAX K associates/5K offices (52 countries) transactions/agent vs 7-10 $360B-$400B transactions 32 consecutive years of growth Source: Everybody Wins, Phil Harkins & Keith Hollihan
Agent-centric: Youre not in the real estate business anymore; youre in the real estate agent business! Source: Everybody Wins, Phil Harkins & Keith Hollihan
RE/MAX: A Life Success Company Source: Everybody Wins, Phil Harkins & Keith Hollihan
16. Re-imagine Excellence II: Meet the New Boss … Women Rule!
AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure Title, Special Report/BusinessWeek
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: Women Managers
17. Re-imagine Leadership for Totally Screwed-Up Times: The Passion Imperative.
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
Ah, kids: What is your vision for the future? What have you accomplished since your first book? Close your eyes and imagine me immediately doing something about what youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
Organizing Genius / Warren Bennis and Patricia Ward Biederman Groups 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.
Yes!!!!!!!!!!!!!!!!! free to do his or her absolute best … allow its members to discover their greatness.
In the end, management doesnt change culture. Management invites the workforce itself to change the culture. Lou Gerstner
We have a strategic plan. Its called doing things. Herb Kelleher
I used to think that the mark of a good businessman was to not make mistakes. But then I met a lot of successful businessmen and realized that … the key to their success was they were willing to try a lot of things. That also means being willing to make mistakes. Gordon Segal, CEO, Crate & Barrel
A man approached JP Morgan, held up an envelope, and said, Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000. Sir, JP Morgan replied, I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask. The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000.
1. Every morning, write a list of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR
To Be somebody or to Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)