Distinct or … ExtinctTom Peters Seminar2000

ASAE Annual Meeting and Exposition

Orlando Convention Center13 August 2000

Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29

Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19

Source: Fortune (3.20.00)

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

The [New] Ge Way

DYB.com

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

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.”

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

Brand Inside

Brand Work: The WOW Project

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations” (10/26/98)

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

Winner Take All!

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)

“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)

“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

“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

Dudes With ’Tude“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

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, 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!

“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

“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

Brand Outside

Strategy 2:Use the Web/

E-Commerce to Re-invent Everything!

www.cyveillance.com

08.12.2000/0509AM:

2,337,711,647

www.cyveillance.com

08.13.2000/0506AM:

2,344,831,197

Or …

23hrs57min = 7,119,550

Tomorrow Today: Cisco!

87% of $20B*(Cisco Connection ONLINE)

Save $500M(service and tech support)

* = $48,000,000 per … DAY

COMMUNITY!/ COMMUNITY SERVICES!

Tomorrow Today: Cisco!

87% of $20B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

Chat Rooms/Collaborative Design ($1B “free” consulting)

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut

Hook: community services (database, catalogs, forums,

industry job bank, etc.)

SoftWatch (MS)“Manage relationships across the

healthcare continuum”/ Amir Kishon

Establish e-relationships with customers/retain customers/collect data

Patients record info + receive feedback/ online access to nurses

Community with others with MS

Etc.Source: Start-Up

B2C Success

“Genuine brand strength”

“Build community”Source: Geoffrey Moore

Bruce Butterfield, CEO, The Forbes Group …

“self-forming groups”“catalyst for community”

“participant-determined world”

Source: Association Executive 4/00

Community …

Somewhat mediated, segmented chat rooms (must be “managed”/ seeded)User-friendly technical/ professional info

Industry “intelligence”Some very timely stuff/ attractors

Hotlinks by the gazillion (to professional and unrelated stuff)

Expert/ advisor opinions (info, chats, etc.)Opportunity for users to build

own Web page & create own communities

Some Lessons from AOL (Yahoo, etc.) …

Customized InfoCustomer Control

Utility (convenience, speed, control, insta-choice)

Self-created CommunityChat/Sociability!

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

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

Web Fallout I (-)

“Associations have lost their information

franchise.”Bruce Butterfield, CEO, The Forbes Group

(Association Executive 4/00)

Web Fallout II (-)

TP: Associations are also losing their “community

franchise”!

Web Fallout III (+)

TP: All “the rules” are changing. Who will make the new rules-

frameworks? NEED SOLIDARITY-SUSTAINED PASSION-

EDUCATION-P.R.-BRAND STRENGTH IN D.C., THE W.T.O., THE MEDIA, ETC. …NOW MORE

THAN EVER!

Web Fallout IV (+)

ONLY INSPIRED, RISK-TAKING,

ENTREPRENEURIAL LEADERSHIP WILL

PREVAIL!

Brand Outside

Strategy 3: Fighting Back via

Systems Integration!

“Systems Integrators” Unite [And Conquer]

Cisco’s winning strategy

[USAToday 07.11]: “Become the ‘Go-to’ Systems

Provider”

“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, Carpet One, Bud …

[Anybody in their right mind!]

E.g. …

GE: boxes [transformers, etc.] to “air traffic controllers of electrons”

UTC/Otis + Carrier: boxes to “integrated building systems”;

P&W, etc.: boxes to major aircraft subsystems

Brand Outside

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]

Brand Leadership

Passion Rules!

Brand Leadership!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

[ Message to NAPM: You are Re-invention Evangelists! ]

How sweet it is!

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti