Distinct or … ExtinctTom Peters Seminar2000
AmeriCreditFort Worth
22 September 2000
Summer 2000 …
KOA wires up!
“Amazon.com Plans to Offer Cars Online”Headline: New York Times 08.24.00
N.W.O. Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.
Cell phones, Voice mail, email, Internet access
Levi’s and Philips
Stephano Marzano (Philips Design), Levi Strauss, Italian
designer Massimo Ossi: jacket with cell phone and MP3 player
built into pockets!
Source: Red Herring (09.00)
“Davids vs. Corporate Goliaths: Could the
Record and Film Industries Be Brought Down by Teenagers?”Headline: The New York Times (08.06.00)
“The period 2000-2002 will bring the single greatest change in
worldwide economic and business conditions since we came down from the trees.”
David Schneider & Grady Means, MetaCapitalism
“The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and
financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
And Now the Equivalent …
White Collar Revolution!
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
RR on “Assetless” [J.B.] Sara Lee
“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available
with insights into the customer’s individual needs
and preferences.”
Brand Inside
Brand You: Distinct …
or Extinct
DISTINCT … OR EXTINCT!
“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”
Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2000
Sense of Humor = N0.1Mastery
Rolodex ObsessionFinishing Skills
Entrepreneurial InstinctCEO/Leader/Businessperson
Mistress of ImprovIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
Brand Inside
Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“Seller’s Market”: Tomorrow’s Headline*
“Molecular biologists are up 3 points, economists
down 1/4, in moderate trading”
*futureWEALTH, Stan Davis and
Christopher Meyer
From “1, 2 or 3” [JW] to … “Best talent in each
industry segment to build best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
“Top performing companies are two to four times more likely
than the rest to pay what it takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s
the relentless rise of the quasi-adolescents who wield them.”
Michael Schrage
“Where do good new ideas come from?That’s simple! From
differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to
mix ages, cultures and disciplines.”
Nicholas Negroponte
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
Women and new-economy
management …
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s Stuff = New Economy Match
Improv skillsRelationship-centric
Less “rank consciousness”Self determinedTrust sensitive
IntuitiveNatural “empowerment freaks” [less
threatened by strong people]Intrinsic [motivation] > Extrinsic
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
Mantra2000
Talent = Brand
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“The ‘surplus society’ has a surplus of similar companies, employing similar
people, with similar educational backgrounds, working in similar jobs,
coming up with similar ideas, producing similar things, with similar
prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Brand Outside
Strategy 1:
Lead the Customer!
“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing.
Companies should be idea-led and consumer-
informed.”Doug Atkin, partner,Merkley Newman Harty
“Our strategies must be tied to leading edge
customers on the attack. If we focus on the defensive
customers, we will also become defensive.”
John Roth, CEO, Nortel
Brand Outside
Strategy 2:Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.30.2000/1221AM:
2,461,940,629
www.cyveillance.com
09.22.2000/0603AM:
2,633,116,056
23 days, 5 hours, 42 minutes …
+171,175,427
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Savings in service and support from customer self-management: $500M
Oracle: Service Call Center
$300.00 per transaction to $1.50
Savings: $550,000,000
Source: Ralph Seferian, Oracle [part of O’s $1B saving – on a rev. base of $9B;
$1B additional this year]
Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the
Web per se.
Schwab: $25B per week in asset transactions [80% of trades]
[Transition to e.Schwab: Rev. fell, then quickly doubled]
COMMUNITY!/ CUSTOMER CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
I Can Immediately …
Shop for $1,000,000 homes or $1.95 office supplies, at best price and with best advisors
Manage all my financial dealingsWork with my doc, or world’s best medical experts, or
humble support groups, on any health issueRecruit talent to help me with any project
Develop professional docs collaboratively, with anyoneShare my ideas with the worldChat with anyone, anywhere
Research anythingTake a course on any topic, from cooking to software
Stay in touch with my 90 year old momPlay a gajillion games to while away the time
RADICAL STRATEGIES
REQUIRED
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.” Jack Welch
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
REINVENT EVERYTHING
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
“Supply Chain” 2000:
“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized
home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My
Yahoo for Company X and hooks into every network associated with Company X. And Joe Employee,
business partners and customers don’t have to be in the office. They can log on from their own cell phone,
Palm Pilot, pager or home office system.”
Red Herring (09.2000)
“Banking is
necessary. Banks are not.”
Dick Kovacevich, Norwest/ Wells
“It” is real! It is “Life and Death”!Dream BIG!
Start Now! Study Hard! Play Hard! Play Fast! Go on Offense!
Hire great folks! (They ain’t cheap. They are young!)
Don’t cut corners on infrastructure!
Rem: “Age of the Never Satisfied Customer”!
We ain’t seen nothin’ yet!
TP on 2005
90% visit
30% “buy” (25%-40%)
10K dealers (7K-15K)
Franchise laws severely tested
Your Potential-Opportunity?
Help your dealer-partners migrate up the value chain
Be prepared for a much altered landscape
Brand Outside
Strategy 3: Fighting Back via
Systems Integration!
“We can expect markets as efficient as capital markets for everything.
Time-shared airplane space, time in Denton Cooley’s operating schedule, eggs from 5’10” Radcliffe graduates, baseball cards. Once these markets are established, futures, derivatives
and all the rest will follow.”
Stan Davis & Christopher Meyer, futureWEALTH
HealthMarket.com
“The exchange is designed to enable consumers to purchase a wide range of health-care services – from
insurance plans to episodes of care for such procedures as heart surgery and hip replacement – on the Internet, much as they can now purchase groceries
and airline tickets. … The new venture reflects a growing interest in returning responsibility for day-to-
day medical decisions to consumers and their physicians. ”
Source: The Wall Street Journal (07.24.00); also covered: HealthAllies.com
GM/Ford/DaimlerChrysler (02-27)
Covisint$240B (+$500B)
Goal?
Drive profits to zero!*
*Remember AMR and “dynamic pricing.”
“Net Nips Real Estate Sales Fees”
Headline, p.1B, USAToday 07.05.00*
*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.
Response: Racing up the V.A. Ladder. Doing More & More … & More & More &
More … for/with the Customer and the Supply-
Demand Chain!
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
The eProcess Edge
Embed processes in software (My.Yahoo, MySchwab)
Outsource processes electronically (Gateway and eCredit)
In-source new capabilities electronically (Fidelity’s services from outside)
Handle exceptions exceptionally (Schwab)
Source: The eProcess Edge, Peter Keen & Mark McDonald
Brand Outside
Strategy 4:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 75%Etc.
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family
healthcare, finances, education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9/27.5/3.6T > Germany
OPPORTUNITY
NO. 1!
FemaleThink/ Popcorn
“Men and women don’t think the same way, don’t communicate the same
way, don’t buy for the same reasons.”
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,
they make connections.”
Women and Healthcare
Women are … more dissatisfied, frustrated by the way they are treated
and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $
$$$ [and constitute 2/3 of health care employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.
Women do not want … an in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
“Women Beat Men at Art of Investing”Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of
stocks more often; women choose carefully and hold on for the long term)
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“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
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the
female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment. Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her intelligence and ability.”
EVEolution
“What kind of car does Mommy want?”
27 March 2000: email to TP from Shelley Rae Norbeck
“I make 1/3rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women
friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
Grameen Bank/Bangladesh
“It’s not people who aren’t credit-worthy. It’s banks that aren’t
people worthy.”$2.3B to 2.3M [typical 1st loan: $15.]
98% recovery rate [94% to women!]
1/3rd out of poverty; 1/3rd up to non-poverty threshold
Muhammad Yunus, Banker to the Poor
Brand Outside
Strategy 5 & Summary:
BRAND POWER!
“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
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, Tom’s of Maine
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander