Tom Peters Seminar2000 Distinct or …
ExtinctRochester
04October2000
Summer 2000 …
KOA wires up!
When Mike Charles gets lonely, who does he talk to …
Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2%
milk. Tap keypad on door. Webvan.com delivers in hours. Next, he sends his
washer an email …Source: Business Week (09.00)
Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.
Cell phones, Voice mail, email,
Internet access
Um … Eduardo Kac and Alba, the glowing*
bunny rabbit!
*You can thank one selfless jellyfish and several French scientists!
Source: Boston Globe (10.01.00)
Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
NOW THAT’S B-I-G!
“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)
“We are in a
brawl with no rules.”
Paul Allaire
S.A.V.
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge customers on the attack.
2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology
and products our customers need.4. Success is achieved by leading change,
not waiting for it.5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“It used to be that the big
ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional
Venture Partners)
Progressive
“We don’t sell insurance anymore.
We sell speed.” – Peter Lewis
Digital cameras, wireless Net links,
etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!
Source: Business Week (09.00)
“Michael Dell comes on the scene and eliminates the retailer. If you order a
Dell computer before 1030 in the morning, he will fabricate it in the
afternoon, burn it in later in the day, and ship it to you at night. You
cannot compete with Dell if you’re trying to ship boxes to a store.”
Peter Sealey, marketing prof, UC Berkeley
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Tom Peters Seminar2000
Brand Everything:Distinct or Extinct!
Structure
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
Forget > Learn
“The problem is never how to get new, innovative thoughts into
your mind, but how to get old ones out.”
Dee Hock
“When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of Goldman Sachs’ Investment Policy
Committee, answered: I’m sure there are success stories
out there, but at this moment I draw a blank.”
Mark Sirower, The Synergy Trap
“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.
We buy the engineers and the next generation product. …”
John Chambers, Cisco
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
Lessons from the Bees!
Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into
smaller colonies which can grow value faster. What the bees are telling us is that the corporate
world has got it all wrong.”David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth, Lockheed, Coca-Cola
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut … 10,000 Jobs”
“Middle-level and senior managers are expected to be
the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)
Qwest Announces 11,000 Layoffs
“The cuts will be concentrated among
management employees.”
Source: AOL 09.07.2000
White Collar Revolution!
108 X 5vs.
8 X 1*
* 540 vs. 8 (-98.5%)
The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
Automation+
75% of what we do: 40 “expert” decision rules!
“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
“Don’t own nothin’ if you can help it. If you can, rent your shoes.”
F.G.
Cisco, Dell =
Brand-owning companies who sell Customer
Satisfaction
Source: David Schneider & Grady Means, MetaCapitalism
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.”
Cemex and FDX!
[Pervasive “Risk Markets”
“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to
install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which
neighborhoods you go. The premium you pay reflects your actual driving risk.”
Stan Davis & Christopher Meyer, futureWEALTH]
Advance Paradigm
Data on 165,000,000 prescriptions per year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)
Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
So what will be the Basic Building
Block of the New Org?
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
New OrleansApril 2000:
NAPM
You are the … Rock Stars
of the B2B Age!
Message: You are Re-invention Evangelists!
ChicagoNovember 1999:
HRMAC
“support function” / “cost center” / “bureaucratic
drag”
or …
Are you “Rock Stars of the
Age of Talent”
Every job done in W.C.W. is also done
“outside” … for profit!
Credo
“WORK WORTH
PAYING FOR”
C.I.O. to
C.E.F.R.N.S.*
*Chief Evangelist For
Really Neat Stuff
“P.S.F.”: Summary
H.V.A. Projects (100%)Pioneer Clients
WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”
Point of View (Methodology)W.W.P.F. (100%)
When: Now!
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget … who cares?”
anon. seminar participant (4/99)
Measures
–WOW!–Beauty!–Raving Fans!–Impact!
T.T.D.sThe next slide is the first of many
“T.T.D.” activities. I.e.: Things To Do, shorthand forms of training
exercises I use. Also: Many of these T.T.D. slides, as
well as most of the “Stuff That Matters” section, have accompanying Notes. (Use Normal View to access.)
Tom Peters
T.T.D.: Now!– List all projects– Carefully describe a “WOW Outcome” for you
and the Client– Score (!) all projects on WOW, Beauty, Impact,
Raving Fan-hood– Pick one project with a high combined score– Draft a one-page New Description that
emphasizes WOW, Beauty, etc.– Circulate and edit … for three days – Reduce to 5 bullet points
Brand Inside
Brand You: Distinct …
or Extinct
2010 “Demographics”:
By 2010, full-time workers will be in the
minoritySource: MIT study (28August2000)
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
MasteryRolodex Obsession
Finishing SkillsEntrepreneurial Instinct
CEO/Leader/BusinesspersonMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
“You must realize that how you invest your human capital matters as much as how you
invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they
appreciate? How much will my portfolio of career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
T.T.D./Your R.I.P.
IS IT … FORMAL? IS IT ... WOW!?
“The average knowledge worker will outlive the average employing organization. This is the first time in history that’s happened. … So
the center of gravity of higher education is shifting from the education of the young to the
continuing education of adults.”
Peter Drucker, Business 2.0 (08.22.00)
“Our education system is a second-rate, factory-style organization, pumping out
obsolete information in obsolete ways. [Schools] are simply not
connected to the future of the kids they’re responsible for.”
Alvin Toffler, Business 2.0 (09.00)
Seminar Y2K/Brand Inside
Message: Distinct … or
Extinct!
T.T.D./Assignment
Construct a 1/8-page or 1/4-page ad for
Brand You … for the Yellow Pages
[ T.T.D.: How About It?
Replace your current evaluation process with
Yellow Pages ads.]
America[ns] The … Beautiful Re-inventors
Ben F.Ralph W.E.
Dale C.N.V.P.
Werner E./EST“Tony R.”/“Coals Dude”
Stephen
Bill Parcells’ World/ Brand You World!
BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
NY Post (9/99)
Invent. Reinvent. Repeat.
Source: HP banner ad
Brand Inside
Brand Talent: The Great War for Talent
The Case
“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
The Talent Ten
Obsession! Greatness!
Performance!Pay!
Youth!Diversity!Women!Weird!
Opportunity!Leading Genius!
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
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)
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH
INITIATIVEE.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“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 (05.17.00)
4. Pay
Fork Over!
“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)
5. Youth
Grovel Before the Young!
“Davids vs. Corporate Goliaths: Could the
Record and Film Industries Be Brought Down by Teenagers?”Headline: The New York Times (08.06.00)
“The Rise of the Teen Guru”
“They’re brilliant, ambitious, and almost intuitively gifted at technology. A new generation
of whiz kids are gaining unprecedented power and
authority.”Source: Cover story, Brill’s Content, 7-8/00
“Talented people are less likely to wait their turn. We used to
view young people as trainees; now they are authorities. Arguably
this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
6. Diversity
Mess Rules!
“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
“Diversity defines the health and wealth of nations in a new century. Mighty is the
mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the
rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
7. Women
Born to Lead!
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
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)
8. Weird
The Cracked Ones Let in the Light!
“We are in a
brawl with no rules.”
Paul Allaire
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
Axiom: Never hire anyone without an aberration in their
background. (Find the One Ton Cookie Man!)
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human Enablement Department
“Firms will not ‘manage the careers’ of their employees. They
will provide opportunities to enable the employee to develop
identity and adaptability and
thus be in charge of his or her own career.”
Tim Hall et al., “The New Protean Career Contract”
“The challenge for IBM, AT&T and other mainstream companies
is to re-instill a sense of adventure in recruits.”
Burke Stinson, AT&T
10. Leading Genius
We are all unique!
44 Players = 44 Projects = 44 different success
measures = 44 different styles (of you)
Exec: Can we really use individualized evaluations for everyone?
TP: We do routinely for “Top 25,” so why not? Few supervisors have more than 10
folks directly reporting to them. True, there’d have to be some bounds. I guess. But why not a $60,000 housekeeper who
sets the character of a full floor of a $150,000,000 hotel property?
Employee retention & satisfaction:
Overwhelmingly, based on their immediate manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Insights from 80,000 managers:
“People don’t change much.“Don’t waste time trying to put in
what was left out.“Try to draw out what was left in.
“That is hard enough.”
Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Mantra2000
Talent = Brand
Brand Inside
Brand Action:Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
“This is all I ‘know’ in the
world!”Tom Peters
I. THE IDEA
“4Fs”: Find a
Fellow Freak
Faraway
Heart of the Matter
F2F!*
*Freak to Freak … or K2K [Kook to Kook]
World’s Biggest Waste …
Selling “Up”
Axiom: Never waste compelling evidence on people who don’t
agree with you, especially bosses. The principal purpose of such evidence is to inflame people who already agree with you – to the point that they will
take hard action.
II. THE NUGGET
Do Something. Do Anything.
Get Going.Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Shit-I-Wish-It-Were-Over Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War for Talent via … a thoroughgoing review
of how safety and environmental issues contribute to making this a
Great Place to Work?
Is It …
Fix these bloody customer problems that have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young division GM on …
using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the
heart of the Product Design Process?
Reframers’ Rules:
Rule 1: Never accept an assignment as given! (Please.)
Rule 2: You’re never so powerful as when you are “powerless”!
Rule 3: Every “small” project contains the entire
enterprise DNA!
III. THE TOOL
Prototyping Mania!
Culture of Prototyping
“Effective prototyping may be
the most valuable core competence an innovative organization can
hope to have.”
Michael Schrage
IV. THE SOFT STUFF
Connect!Infect!
Message: It’s Community
Organizing, stupid!
See: Saul Alinsky’s Rules for Radicals
V. BOTTOM LINE
The Enemy!
Epitaph from Hell … Epitaph from Hell …
Joe T. Jones Joe T. Jones
1942 - 20001942 - 2000
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
Characteristics of the “Also Rans”
“minimize risk” “respect the chain of command” “support the boss” “make budget”
Source: Fortune on “most admired global corporations”
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
Reprise: Brand Inside
The White Collar Revolution & The Web [DYB.com!]
PSF as Building Block [Work Worth Paying For!]
Work Worth Paying For = WOW Projects!
Brand You [Everybody!]
The Great War for Talent!
Boss-free Implementation of STM! [F2F]
N.W.O.: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are
for fools.”)• I love “Yes men”• Self-contained
• Seat 9B, UA233• Address: [email protected]• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal
as breathing• I love Misfits!• I love partners
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
In the Beginning …
“The audit has become a
commodity.”Big 5 audit partner to TP
Quality Not Enough!
“Quality as defined by few defects is becoming the
price of entry for automotive marketers
rather than a competitive advantage.”
J.D. Power
Quality Not Enough!
“While everything may be better, it is also increasingly the
same.”Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
“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
The “10X/10X Phenomenon”
10 Times Better/
10 Times Less Different
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
“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President,
Bentley College
“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
Lucent Stumbles!
Cause(s): (1) Listening to BIGGEST, SLUGGISH
customers. (2) Failing to exploit the Web internally or externally
Source: Business Week (08.07.00)
Message …
Biggest is not always [often?] most beautiful!
F2F Rules: How’s your “freaks” portfolio?
Nypro!
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
10.04.2000/0632AM:
2,719,660,789
35 days, 6 hours, 11 minutes …
+257,720,160
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]
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
COMMUNITY SERVICES!/ 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)
Cisco’s Secret
Trust (Openness to partners!!!!!)
Welcome to
D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as
a business go down and
perceived service goes up because customers are conducting it
themselves.” Ray Lane, Oracle
Psych 101: Strongest Force on Earth?
My need to be in perceived control of my universe!
“The moral is that in an imperfect world of customer
service, most customers prefer to cut to the chase
and help themselves.”
Adrian Slywotzky & David Morrison, Mercer Consulting
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
“The Web enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“In the network economy, the Website becomes the company’s primary interface to the customer.
The user interface becomes the marketing materials, store front,
store interior, sales staff and post-sales support all rolled into one.”
Jakob Nielsen, Designing Web Usability
“Most companies would do more business on the Internet if they
fired their entire marketing department and replaced it with
people who could produce interactive content that actually made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
Red Herring (01/00)
75% of online shoppers don’t complete their
purchase!
SWA
Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t
believe they’re done)
30% of revenues directly from site (vs. 6% for others)
Source: Business Week (09.00)
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]
ACT NOW, ACT FAST,
KEEP ACTING
“It’s better to be first with less than last with more. Success on
the Web isn’t just about time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
SUMMARY: 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. The real trick is that 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)
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
A DREAMER’S MEDIUM!
“There is no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams you could never have imagined before!
“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!
“Banking is
necessary. Banks are not.”
Dick Kovacevich, Wells Fargo
Brand Outside
Strategy 3: Fighting Back via
Systems Integration!
THE CASE
B2B
1999 – 2004: 50X
2004: $7.4TSource: GartnerGroup (per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint$240B (+$500B)
I.P.O.
Solectron, IBM, Nortel, Matsushita, Seagate, Etc.
E2Open.com
$700B
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.
Message: “BOX” SELLERS LOSE!
THE RESPONSE
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
“Systems Integrators” Unite [And Conquer]
Cisco’s winning strategy
[USAToday 07.11]: “Become the ‘Go-to’ Systems
Provider”
09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers
Consulting bus! (31,000 bods)
“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
Defense-Offense: Systems Integration/HVA
Delphi, DanaUnited Technologies, Corning, GE, Sun, HP,
Carpet One, Bud …[Anybody in their right mind!]
E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
Brand Outside
Strategy 4:
Design Matters!
And Tomorrow …
“Fifteen years ago companies competed on price. Now it’s
quality. Tomorrow it’s design.”Robert Hayes
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
“We don’t have a good language to talk about this kind of thing. In most people’s
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
Message: “Great - Cool Stuff” Matters.
Great & Cool Trumps Not-So-Great &
Ho Hum!
Message iMac:
“Great Stuff” Takes Guts!!
Unconventional [Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple Computer … Amazon.com …
Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New York Yankees … 3M … Etc.
* List No. 1, 1999
Lady Sensor, Mach3, and …
$70M on developing the OralB CrossAction toothbrush
23 patents, including 6 for the packaging
Source: www.ecompany.com [06.00]
TARGET … “the champion of America’s new design
democracy” (Time)
Web = PURE DESIGN MEDIUM
Message:“Services” are Not Intangible!
You “give off” hundreds of design cues … daily!
YOU ARE A DESIGNER!
T.T.D./“Beauty Contest!”
1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim
form.2. Rate it on a 1 to 10 scale
(1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity.
3. Repeat … every 15 days.
“My favorite word is grace –
whether it’s amazing grace,
saving grace, grace under
fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or
the environment.”
Celeste Cooper, designer
Design “is” … WHAT &
WHY I LOVE. LOVE.
I LOVE my ZYLISS Garlic Peeler!
Design “is” … WHY I
GET MAD. MAD.
Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK
PHONE. Major Reward!
Design is never neutral.
Hypothesis: DESIGN is the principal difference between love and
hate!
T.T.D./Design “Awareness”!
STEP No. 1: NOTEBOOK![Start recording the awesome
and the awful.]
“Sometimes I have episodes of wild fury in rental cars. It’s not road
rage. It’s more like design rage.”
Susan Casey, www.ecompany.com
Brand Outside
Strategy 5:
It’s the Experience!
“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
“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 that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
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
“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
T.T.D.
WHAT’S THE [your] PLOT?
PlotWilliams Sonoma = 6 [was 10]
Crate & Barrel = 8Sharper Image = 9+
Smith & Hawken = 8+Vermont Country Store = 8+
Garnet Hill = 9L.L. Bean = 5 [was 9+]
Land’s End = 7+Colonial Williamsburg = ?
The “Experience Ladder”
Extraction/Raw MaterialsGoods
ServicesExperiences
To 1940: Cake from flour, sugar (extraction economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1985+: Party @ Chuck E. Cheese (experience economy) $100.00
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
Brand Outside
Strategy 6:
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
9M/27.5M/$3.6T > Germany
New golfers … 37%Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!*
[* No shit!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, familyWomen: Connect
Men: Self-orientedWomen: Other-oriented
Men: RightsWomen: Responsibilities
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.”
“Men seem like loose cannons. Men always move faster through a store’s
aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants,
pick something up, and then, almost abruptly he’s ready to buy. … For a
man, ignoring the price tag is almost a sign of virility.”
Paco Underhill, Why We Buy* (*Buy this book!)
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)
Marketing to Women: Help Them Save Time!
80% … work86% … cook
58% … run errands with kids38% … take child to school
21% … go to the gym21% … take outside classes
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done indicates that women really care about the relationship with their
vendor.”
Robin Sternbergh/ IBM
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
Not!!
“Year of the Woman”
Enterprise Reinvention!
RecruitingHiring/Rewarding/ Promoting
Structure Processes
MeasurementStrategyCulture Vision
Leadership
THE BRAND ITSELF!
“What kind of car does Mommy want?”
“I didn’t know [company] were giving
company cars to secretaries.”
Source: UK financial services CEO, 12/99
Psssst! Wanna see my “porn”
collection?
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!”
THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS
SEMINAR. [PLEASE: THINK ABOUT IT!]
“If we are single, they say we couldn’t catch a man. If we are
married, they say we are neglecting him. If we are divorced,
they say we couldn’t keep him. If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female political candidacy
Speaking of Enormous
[Missed] [Huge] Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44, stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is stupid, stupid!
2000-2010 Stats
18-44: -1%55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Priorities: Aging/“Elderly”
Experiences … Convenience … Comfort
… Access … Respect!
Brand Outside
Strategy 7:Embracing an
Age of Self-Determination
“We are in a
brawl with no rules.”
Paul Allaire
The Individual
“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
The Work
Enter …
The WOW Project!*
*The Project50
The Organization:
Seller’s [Talent] Market
“Talented people are less likely to wait their turn. We used to view young people as trainees; now
they are authorities. Arguably this is the first time the older
generation can – and must – leverage the younger generation
very early in their careers”
Ed Michaels, War for Talent (05.17.00)
The Market: Fighting
Sameness with Distinction
“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing.
Companies should be idea-led and consumer-
informed.”Doug Atkin, partner,Merkley Newman Harty
Web World: POWER TO
THE PEOPLE
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Women Get Respect … and
Take Charge
$4.8T > Japan
9/27.5/3.6T > Germany
The Elderly Get Respect … and
Take Charge
Aging/“Elderly”
$$$$$$$$$$$$“I’m in charge!”
Our Biggest Industry: The Patient Takes
Charge
“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00
“Online Medical Records Seen Empowering
Patients”
Source: Headline, Boston Globe, 07.31.2000, re 1K docs and 700K
patients @ CareGroup
1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”
YES, NURSE. ME GOOD PUPPY DOG.
1995: “HMO will take care of you.”
BULLSHIT.
2005: “I will take care of me. I’d like your expert help.”
Patient-centric* Health Care
Wellness (Fix to prevent.)
Partnership (“Tour guide” model.)
Web (Info and support group availability
RESPECT! (Mutual.)
WOMEN RULE!*Not: HMO-centric, Employer-centric, Insurer-
centric, Doc-centric
The Poor Get Respect
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
“The Grameen loan is not simply cash. It
becomes a kind of ticket to self-discovery and
self-exploration.”
Muhammad Yunus
Etc.
Self-Determination Redux
Micropower (fuel cells) …Microgrids …
“Virtual Utilities”
Source: The Economist (08.2000)
Sooooo …
Is your strategy centered around customer-client empowerment & self-
determination? Hint: This means letting go
of traditional sources of power!
Brand Outside
Strategy 8 & Summary:
BRAND POWER!
Brand It! Now, More Than Ever!
“The increasing difficulty in differentiating between products and
the speed with which competitors take
up innovations will assist in the rise and rise of the brand.”
Gillian Law and Nick Grant, Management [New Zealand]
Scott Bedbury/ Nike, Starbucks
“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an
emotional connecting point that transcends the product.
“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that
connects with something very deep - a fundamental appreciation of mythology.
Stories create the emotional context people need to locate themselves in a larger experience.”
“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
“In the funky village, real competition no longer revolves
around marketshare. We are competing for attention –
mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
T.T.D./Calling the Corporate Shrink!
“Organizational Psychotherapy”/
WHO WE ARE!
T.T.D.: “How can I know what I think till I see what I say”*
Exercise : Write copy for a bookmark! (Etc.)
*Graham Wallas, The Art of Thought
Brand Outside
Reprise: Wimps & Weenies Need Not
Apply!
Lead the Customer: Why Tough
Guts!Failures!
Re-invention via ecommerce: Why Tough
Total commitment to total enterprise [and supply
chain] reinvention!
Yo, C.D.O.!!!!!!!!
Systems Integration: Why Tough
Completely new view of what a “product” is.
Design: Why Tough
True-believer-dom-shipEncompassing/Cultural
Ing-ing/Experience: Why Tough
Total Reorientation
Women’s Market: Why Tough
EncompassingAttitude
CULTURAL!
Self-Determination: Why Tough
Cede Control
Brand Power: Why Tough
Way of LifeForever!
Passion Rules!Touches Everything!It Am Me [Personal!]
Message :
Not for the Faint of Heart!
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Leadership is a performance. You have to be
conscious of your behavior, because everybody else is.”
Carly Fiorina
“It is necessary for the President to be the
nation’s No. 1 actor.”FDR
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
“A leader is a dealer in hope.”
Napoleon
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander
How sweet it is!
“I’d rather regret the things I have done than the things I have not.”
Lucille Ball
“If things seem under control, you’re just
not going fast enough.”
Mario Andretti
Have you changed civilization today?
Source: HP banner ad