HR Owns the BRAND! (Damn it!)

Tom Peters

IHRIM/06.17.01/San Diego

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 1st 20 years > 1800s

2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th

century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture

in the fabric of human history”)

Ray Kurzweil, talk april2001

“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)

Built to Last v. Built to Flip

“The problem with Built to Last is that it’s a romantic notion. Large companies are

incapable of ongoing innovation, of ongoing flexibility.”

“Increasingly, successful businesses will be ephemeral. They will be built to yield

something of value – and once that value has been exhausted, they will vanish.”

Fast Company (03-00)

Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by

20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.

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 1997.

Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies that Are Built to Last Underperform the

Market

“Good management was the most powerful reason [leading firms] failed to stay atop

their industries. Precisely because these firms listened to their customers, invested aggressively

in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied

market trends and systematically allocated investment capital to innovations that promised

the best returns, they lost their positions of leadership.”

Clayton Christensen, The Innovator’s Dilemma

The [New] Ge Way

DYB.com

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

White Collar

Revolution!

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Inside

Brand Work: The Professional Service

Firm Model & The WOW Project

Every job done in W.C.W. is

also done “outside”

…for profit!

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

Credo: W.W.P.F.

“WORK WORTH PAYING

FOR”

11 September 2000

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

[“These days, building the best server isn’t enough. That’s the

price of entry.”

Ann Livermore, Hewlett-Packard]

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Etc. … Etc.

“ ‘Architecture’ is becoming a commodity.

Winners will be ‘Turnkey Facilities Management’

providers.”SMPS Exec

eHR*/PCC***All HR on the Web

**Productivity Consulting Center

Source: E-HR:A Walk through a 21st Century HR Department, John Sullivan, IHRIM

Brand Inside

Brand Talent: The Great War for Talent

“When land was the productive asset, nations

battled over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“We have transitioned from an asset-based strategy

to a talent-based strategy.”

Jeff Skilling, CEO, Enron

Enron

COO: Louise Kitchen, F, 29; created

EnronOnline as “Skunkworks”

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

“Are there

enough weird people in the

lab these days?”V.Chmn., pharmaceutical house, to a lab director (06.01)

“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”

“H.R.” to “H.E.D.” ???

Human

Enablement

Department

MantraM3

Talent = Brand

What’s your company’s …

EVP?Employee Value Proposition, per Ed Michaels et al., The War for Talent

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward

Source: Ed Michaels et al., The War for Talent

HR Folks: YOU – not

“marketing” - “OWN” THE “BRAND PROMISE”!

(If you wish.)

Titles!

Manager HRIS to Manager Human Capital

Assets or Manager Employee Marketing*

*IHRIM.link (2-3.2001)

Version TP: Managing Director, Human

Capital Assets Inc.

Brand Inside

Brand Action:Getting Started … a

Personal Perspective

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

World’s Biggest Waste …

Selling “Up”

Heart of the Matter

F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.

Message to “scientists”: It AIN’T about the science. It’s

NEVER about the science. It’s ALWAYS

about the PASSION for the IDEA.

Politics Rules!

Project Team Golden Leadership Triangle

(1) Champion-Maniac. (2) Implementer-Pol.

(3) Schedule & Budgets Fanatic.

BOTTOM LINE

The Enemy!

Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001

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!

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

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work II

The Commodity Trap

“Companies have defined so much ‘best practice’

that they are now more or less identical.”

Jesper Kunde, A Unique Moment

“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:Use E-Commerce to

Re-invent 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

“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 dreamed

before!

“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

“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

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

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“The Age of the

Never Satisfied Customer”

Regis McKenna

“HR Employee Self-Service/

ESS”John Pask/IHRIM

B2E*

*Business to Employee (IHRIM.link)

“Systems supporting one-to-one employee relationships

will add competitive advantage.” “Employees

expect far more access and control over their own

information.”Source: IHRIM.link (2-3.2001)

I’net …

… allows you to dream dreams

you could never have dreamed

before!

The Raw Material …

The WOW Project!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

“Learn not to be careful.”

Photographer Diane Arbus to her students

Brand Outside

Strategy 2:

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

The “Experience Ladder”

Experiences Services

Goods Raw Materials

HP Revisited

PWC Consultants lead Business Re-invention Process (“Experience

Economy”)

Fabulous Customer Service (“Service Economy”)

Terrific Servers (“Goods Economy”)

“Experience”: Home to [tomorrow’s]

Market Cap!

Brand Outside

Strategy 3:

BRAND POWER!

“Most companies tend to equate branding with the company’s marketing. Design a new marketing

campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how

clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO

I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To

put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”

Jesper Kunde, A Unique Moment

“WHO ARE WE?”

WHAT’S OUR

STORY?

“ WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DIFFERENCE TO THE CLIENT ”

HR Folks: YOU – not

“marketing” - “OWN” THE “BRAND PROMISE”!

(If you wish.)

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)

“Let’s make a dent in the universe.”

Steve Jobs

“I’d rather regret the things I have

done than the things I have not.”

Lucille Ball