tom peters’ we are in a brawl with no rules dubai/02november2002
TRANSCRIPT
Tom Peters’
We Are in a Brawl with No RulesDubai/02November2002
“We are in a
brawl with no rules.”
Paul Allaire
“There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of
change will only accelerate.”Steve Case
I. NEW BUSINESS.
NEW CONTEXT.
1.All Bets Are Off.
<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
“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)
2. The Destruction Imperative.
“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
“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
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 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
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the 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
“Active mutators in placid times tend to die off. They
are selected against. Reluctant mutators in
quickly changing times are also selected against.”
Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors
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]
TP on Acquisitions
1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.)2. Big (GE, Cisco, Omnicon) acquires small/specialist = Good … if you can retain Top Talent.3. Odds on achieving “projected synergies” among Mixed Big “cultures”: 10%.4. Max Scale Advantages are achieved at a smaller size than imagined.5. Attacked by Big, Mediocre Medium marries Mediocre Medium to “bulk up.” Result: Big Mediocrity … or worse.6. Any size—if Great & Focused—can win, locally or globally.7. Increasingly, Alliances deliver more value than mergers —and clearly abet flexibility.
CEOs appointed after
1985 are 3X more likely to be fired than CEOs appointed before 1985
Warren Bennis, MIT Sloan Management Review
“Most of our predictions are based
on very linear thinking. That’s why they will
most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
“The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.”—Newsweek/ Paul Saffo (03.02)
C.E.O. to
C.D.O.
“Organize” for … performance & customer satisfaction.
“Disorganize” for … renewal & innovation.
Japan’s Science Gap *
Rice farming culture: uniqueness suppressed. Gov’t control of R & D. Promotion based on
seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. “bold
leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe:
“What we need to create is job insecurity rather than security to make people compete more.”
*Hideki Shirakawa, Nobel laureate, chemistry
December 2000: Swiss House for Advanced Research &
Education. Cambridge, Massachusetts. Xavier
Comtesse: “You never hear a Swiss say, ‘I want to change the
world.’ We need to take more risks.”
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be known as the ‘King of
the Tinkerers.’ ”CEO, large financial services company
(New York, 5-99)
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a
timely death. … We believe that most corporations will find it impossible to
match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in
1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
The Three Levels of Innovation
Transformational
Substantial
Incremental
Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!
II. NEW BUSINESS. NEW TECH.
3. The White Collar Revolution
& the Death of Bureaucracy.
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
4. IS/ IT/ Web … “On the Bus” or “Off the
Bus.”
100 square feet
Dell’s OptiPlex Facility
Big Job: 6 to 8 hours.(80,000 per day)
Parts Inventory: 100 square feet.
Impact No. 1/ Logistics &
Distribution: Wal*Mart … Dell … Amazon.com …
Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.
… Ad Infinitum.
Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
WebWorld = Everything
Web as a way to run your business’s 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
“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
Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
“There’s 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!
“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have
known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold
here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined
Case: CRM
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
“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 Nordström and Jonas Ridderstråle, Funky Business
Amen!
“The Age of the
Never Satisfied Customer”
Regis McKenna
“CRM has, almost universally, failed
to live up to expectations.”
Butler Group (UK)
CGE&Y (Paul Cole): “Pleasant
Transaction” vs. “Systemic Opportunity.” “Better job
of what we do today” vs. “Re-think overall
enterprise strategy.”
Here We Go Again: Except It’s Real This Time!
Bank online: 24.3M (10.2002); 2X Y2000.
Wells Fargo: 1/3rd; 3.3M; 50% lower attrition
rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and
stay with the bank much longer.”
B of A: 4M of 15M (“… way beyond the early adopters”).
Source: The Wall Street Journal/10.21.2002
Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the
Coming Century
Hong Kong: Prototypical “Virtual State”
83% Service8% Mfg.
Source: Richard Rosecrance, The Rise of the Virtual State
“The new dependence on productive assets located within someone else’s state represents
an unprecedented trust in the integrity and peacefulness of strangers.”
“In its pure form – an ideal model toward which many states are tending – the virtual state
carries within it the possibility of an entirely new system of world politics.”
Richard Rosecrance, The Rise of the Virtual State
“The virtual corporation is research, development, design, marketing, financing, legal, and
other headquarters functions with few or no manufacturing
capabilities – a company with a head but no body.”
Richard Rosecrance, The Rise of the Virtual State
“We own all the intellectual property, we farm out all the
direct labor.”
Jim McDonnell, VP, IBM
Is There a There There: The Ericsson Case
1. 50+% Mfg to Solectron/Flextronics2. Substantial R&D to India3. Division for licensing technology4. JV with Sony on “crown jewel” handsets5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal”
Source: BW/11.04.02
“The Futility of Size …
“[Regarding this issue] the new process of virtualization fully exerts
itself. Virtualization is the recognition that territorial size does not solve economic problems. … Economic
access must become the substitute for economic domain.”
Richard Rosecrance, The Rise of the Virtual State
TP: Skill at creating, exploiting, and exiting crucial alliances beats
ownership of fixed assets.
What’s the Common Denominator?
The Dutch … the British … the Rothschilds … Cargill … Sumitomo …
the KGB … the CIA … Enron … Wal*Mart … McKinsey … FedEx …
UPS … Mr. Speaker … Henry Kissinger … Executive secretaries … the Corner
Grocer?
Masters of information acquisition, manipulation, dissemination, and
utilization.
Networkmeisters.
Agile.
Temporary.
Virtual is thy name.
Motto: Applied information is power/wealth.
III. NEW BUSINESS. NEW
VALUE PROPOSITION.
5. The “PSF Solution”:
The Professional Service Firm Model.
So what will be the Basic Building
Block of the New Org?
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.
eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
Model PSF …
(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.
(3) Non-awesome are outsourced (75%??).
(4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!
“Typically in a mortgage company or financial services company, ‘risk
management’ is an overhead, not a revenue
center. We’ve become more than that.
We pay for ourselves, and we actually make money for the company.”—Frank Eichorn,
Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
6. The Heart of the Value
Added Revolution: PSFs Unbound/ The
“Solutions Imperative.”
The Big Day!
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
Gerstner’s IBM: Systems Integrator of
choice. Global Services:
$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“You are headed for commodity
hell if you don’t have services.”—Lou Gerstner on IBM’s coming
revolution (1997)
Service-Systems Paradox: Cut & Grow
Automate 75% of “commodity” service activities
and/but
Add value via people-intensive “strategic/systems-integration
activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)
AT&T: President David Dorman: Back to long distance … but with “bundles of lucrative corporate services” for the likes of Merrill
Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers
(50%)—hold on to high enders.
Source: BW/05.20.2002
Is There a There There: The Ericsson Case
1. 50+% Mfg to Solectron/Flextronics2. Substantial R&D to India3. Division for licensing technology4. JV with Sony on “crown jewel” handsets5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal”
Source: BW/11.04.02
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”
Bob Nardelli, GE Power Systems
Keep In Mind: Customer
Satisfaction versus
Customer
Success
E.g. …
UTC/Otis + Carrier: boxes to “integrated building systems”
Leased AC: Units of “Coolth”
Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ …
He wants to capture home improvement dollars wherever and
however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling relationship”).
Source: USA Today/06.14.2002
“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
“No longer are we only an insurance provider. Today,
we also offer our customers the products and services that help them
achieve their dreams, whether it’s financial security, buying a car, paying
for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,
Farmers Group
Omnicom: 57% (of
$6B) from marketing services
Words: Partners … Value Added … Intellectual-capital Added … Consultative-skills Added …
Implementation Added … Model “PSF” … Outsourcing (??) …
Acquisitions-led (Omnicom et al.) … “Experiences”- (“Solutions”-) (“Customer Success”-) driven.
Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2)
Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer
Success.”
Model2002/3/4/5/??
Dell* + IBM** =
Magic
*Subtract (ALL) the friction
**Add (LOTS OF) “soft”/“integrative”/“experiences” value
7. The …
Solutions25.**NO MORE “SILOS.” NO MORE
“STOVEPIPES.” (DAMN IT.)
“The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.)9. Solutions = “Our ‘culture.’ ”10. Partner with B.I.C. (Best-In-Class). Period.
12. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.13. Project Management can come from any function.14. WE ARE ALL IN SALES. PERIOD.15. We all invest in “wiring” the customer organization.16. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)17. We use the word “PARTNER” until we all want to barf!18. We NEVER BLAME other parts of our organization for screw-ups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”
21. We believe in “High tech, High touch.”22. We are DREAMERS.23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)24. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!
“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 a cell phone, Palm Pilot, pager or home office system.”
Red Herring (09.2000)
KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.
WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.
The Real “New Economy”
“Imagine a chess game in which, after every half dozen moves, the arrangement of the pieces on the
board stays the same but the capabilities of the pieces randomly change. Knights now move like
bishops, bishops like rooks … Technology does that. It rubs out boundaries that separate industries.
Suddenly new competitors with new capabilities will come at you from new directions. Lowly truckers in
brown vans become geeky logistics experts. …”
Business 2.0 (8.2001)
IV. NEW BUSINESS. NEW
BRAND.
8. A World of Scintillating/
Awesome/ WOW “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
“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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
WHAT CAN BROWN DO FOR YOU?
Bob Lutz: “I see us as being in the art business. Art,
entertainment and mobile sculpture, which,
coincidentally, also happens to provide transportation.”
Source: NYT 10.19.01
“Lexus sells its cars as containers for our
sound systems. It’s marvelous.”—Sidney Harman/
Harman International
“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
“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.]
9. Experiences+: 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
Common Products “Dream” Products
Maxwell House StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners PeleCNN Millionaire
Source: Gian Luigi Longinotti-Buitoni
Building the Creative Organization
Choose a creator: The cultural leader who gives the company an aesthetic point of view.Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion.Prepare vertically: Develop a rigorous understanding of the product and the client.Develop horizontally: Promote curiosity in unrelated disciplines.Lead emotionally: Engender passionate dedication through vision and freedom.Build for the long haul: Creativity requires a lifetime commitment.
Source: Gian Luigi Longinotti-Buitoni
Emotional Design that Interprets Dreams
“Zero defects”: Only the starting point.
Love at first sight.Design for the five senses.
Develop to expand the Main Dream.Design so as to seduce through the
peripheral senses.
Source: 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
Constantly Magnify Perceived Value
Maximize your value-added by fulfilling the dreams of your clients.
Only invest in what is valuable for your client.Don’t let the short-term results weaken the
long-term value of your brand.Balance rigorous control of the financial endeavor
with the emotional management of your brand.Build a financial structure that allows risk-taking:
NO RISKS—NO DREAMS.Establish long-term “price power” in order to avoid
the trap of the commodity product.
Source: Gian Luigi Longinotti-Buitoni
10. The [Mostly Ignored] “Soul” of “Experiences”:
Design Rules!
Design’s place in the universe.
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
“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
Bottom Line.
Design “is” … WHAT & WHY I LOVE.
LOVE.
Design “is” … WHY I
GET MAD. MAD.
Design is never neutral.
Hypothesis: DESIGN is the principal difference between love and
hate!
THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much]
further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL
REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR
SERVICE OR EXPERIENCE. Design, as I see it, is
arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t.
Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the
front burner.
11. Design+ = “Beautiful” Systems.
Fred S.’s “mediocre” thesis. Herb K.’s
napkin.
K.I.S.S.: Gordon Bell (VAX
daddy): 500/50. Chas.
Wang (CA): Behind schedule?
Cut least productive 25%.
Systems: Must have. Must
hate. / Must design. Must un-
design.
Mgt. Team
includes … EVP (S.O.U.B.)
Executive Vice President, Stomping Out Unnecessary Bullshit
“Ninety percent of what we call ‘management’ consists of making it difficult for people to
get things done.” – P.D.
First Steps: “Beauty Contest”!
1. Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form.
2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work
of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity.
3. Re-invent!4. Repeat, with a new selection, every 15 working
days.
12. “It” all adds up
to … THE BRAND.
The Heart of Branding …
“WHO ARE WE?”
“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, 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, Unique Now ... or Never
“WHAT’S OUR
STORY?”
“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
“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
DO THE HOUSEKEEPERS & CLERKS “BUY
IT”? [ARE YOU V-E-R-Y SURE?]
“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE
Source: Jump Start Your Business Brain, Doug Hall
“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the
message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,
major consumer goods company
“A great company is defined by the
fact that it is not compared
to its peers.”Phil Purcell, Morgan Stanley
“WHY DOES IT MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25
words.) (2) List three ways in which we are UNIQUE … to our Clients.
(3) Who are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Try ’em on a
skeptical Client!
V. NEW BUSINESS. NEW
YOU.
13. Re-inventing the Individual: Brand
You/ You Inc./ Free Agent Nation (Or Else.)
“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
“My ancestors were printers in Amsterdam from 1510 or so until
1750, and during that entire time they didn’t have to learn anything
new.”Peter Drucker, Business 2.0 (08.22.00)
“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
Invent. Reinvent. Repeat.
Source: HP banner ad
In Store: International Equality, Intranational Inequality
“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great
rewards for merit and great individual autonomy. This will leave individuals far more responsible for
themselves than they have been accustomed to being during the industrial period. It will also reduce the
unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies
throughout the 20th century.”
James Davidson & William Rees-Mogg,The Sovereign Individual
14. Toward Work that Matters: The
WOW Project.
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
“Let’s make a dent in the universe.”
Steve Jobs
Your Current Project?
1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)
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
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”*Fortune, article on “Most Admired Global Corporations”
15. Boss Job One:
The Talent Obsession.
Brand = Talent.*
*Duh.
Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Model 25/8/53
Sports Franchise GM
“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
Greatness
Only The Best!
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent
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
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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)
Youth
Grovel Before the Young!
“Why focus on these late teens and twenty-
somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history,
children are more comfortable, knowledgeable and literate than their parents about an
innovation central to society. … The Internet has triggered the first industrial revolution in history
to be led by the young.”
The Economist [12/2000]
8 Minutes*
—Dr. Sugata Mira, NIIT/ New Delhi/ 1999**
*Ignorance to Surfing**And then there’s oya yubi sedai, the “thumb generation”
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
CM Prof Richard Florida on
“Creative Capital”: “You cannot get a technologically
innovative place unless it’s open to weirdness,
eccentricity and difference.”
Source: New York Times/06.01.2002
Weird
The Cracked Ones Let in the Light!
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
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
The Top 5 “Revelations”
Better talent wins.
Talent management is my job as leader.
Talented leaders are looking for the moon and stars.
Over-deliver on people’s dreams – they are volunteers.
Pump talent in at all levels, from all conceivable sources, all the time.
Source: Ed Michaels et al., The War for Talent
First Steps
Make a list of the traits you really want to unearth. (TP &
“sense of humor;” GR & jaywalking.)
Promote for TDS/Talent Development Skills.
Work up an EVP.
VI. NEW BUSINESS: (NEW) BRAND INSIDE RULES
16. THINK WEIRD … the HVA/
High Value Added Bedrock.
The Cortez Strategy!
THINK WEIRD: The High Standard
Deviation Enterprise.
Saviors-in-Waiting
Disgruntled CustomersOff-the-Scope Competitors
Rogue EmployeesFringe 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
W.I.W?
20 of 267 of top 10*
*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10
categories. (The “billion-dollar” problem.)
Source: Advertising Age 01.21.2002/BofA Securities
Primary Obstacles to “Marketing-driven Change”
1. Fear of “cannibalism.”2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.”3.Creating “sustainable advantage.” Source: John-Marie Dru, Disruption
Account planning has become “focus group balloting.”
—Lee Clow
“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo
to create an unsustainable series of competitive advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable
advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the
only level of competition.”
Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering
“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative
and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is
taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice
president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist
thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is
Marketing Not Working?”
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are
prescribed, and experts believe genetic differences are part of the reason. The
technology for genetic testing is now in use. But the technique threatens to be so disruptive to the
business of big drug companies – it could limit the market for some of their blockbuster
products – that many of them are resisting its widespread use.”
The Wall Street Journal (06.18.2001)
“Generally, disruptive technologies underperform
established products in mainstream markets. But they have other features that a few
fringe (and generally new) customers value.”
Clayton Christensen, The Innovator’s Dilemma
COMPETITORS: “The best swordsman in the world doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t
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
“Sony is the epitome of discontinuity. It sees all its competitors’ accomplishments
merely as conventions to be overturned.”
Source: Jean-Marie Dru, Disruption
Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
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
“Enormous sums of money are invested to reduce cycle time, improve quality,
reengineer … Much of this money is simply wasted. The waste is due to companies’
inability to develop wide-angle vision and tap into the … power of the edge.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
“Corporate consciousness is predictably centered around the
mainstream. The best customers, biggest competitors, and model
employees are almost invariably the focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
Deviants, Inc. “Deviance tells the story of every mass
market ever created. What starts out weird and dangerous
becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way
out there.”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
Innovation Source No. 1*:
PPPs/Personally Pissed-off
People
“Branson started Virgin Atlantic because flying other airlines was
so dreadful.” —Fortune/05.13.2002
*And there is no No. 2!
“As Francois Dalle, the chairman of L’Oreal, puts it, the
planner must … catch what is barely beginning.”
Source: Jean-Marie Dru, Disruption
?????: Get better organized to do good
workvs.
Get better disorganized to do great work
17. Brand Inside
Summary: The 10 Basics
Message2002 …
BI > BO
The Brand Inside10BI1. The Execution Imperative: An “Action Culture”BI2. Cherish FailuresBI3. Dent the Universe: WOW Projects/BHAGsBI4. “Tell Me a Story”: Demo ManiaBI5. Cut the Crap: WebWorld = ALLBI6. “Beautiful” SystemsBI7. The Modified Basis for Value Added: The New “Brand Inside Warriors”BI8. Talent TimeBI9. The “HSDE”: Weird Begets WeirdBI10. A Brand New/Brand You World
18. Tomorrow’s Organizations …
Itinerant Potential Machines.
New Organizational World: Shifts of Emphasis
Staffing Fat ThinOrganization Vertical HorizontalWorkforce Homogeneity DiversityPower Source Status/Command Rights Expertise/RelationshipsLoyalty Company ProjectCareer Asset Organizational Capital Reputational Capital
Source: “The Workforce of the Future,” IHRIM Journal (12.2000)
TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to “make their
bones” in “the revolution.”Love the new technologies. Well rewarded. Don’t plan to
be around 10 years from now.
TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often
needed). “We aim to change the world, and we need gifted colleagues—who well may
not be on our payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT.
Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180
degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME
HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS
AND PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?”
Appreciate “market creation” as much as or more than “market share growth.” ARE
INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS,
AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD,
FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Case. Etc.)
ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A
SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER.
Including vendors and consultants and … especially … PIONEERING CUSTOMERS …
who will “pull us into the future.”
TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all
outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share
this (radical) vision.
POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing
things.”
VII. NEW BUSINESS. NEW LEADERSHIP.
19. The Passion
Imperative: The
Leadership50
The Basic Premise.
1. Leadership Is a …
Mutual Discovery Process.
“I don’t know.”
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
The Leadership
Types.
2. Great Leaders on Snorting
Steeds Are Important – but
Great Talent Developers (Type I
Leadership) are the Bedrock of Organizations that Perform Over
the Long Haul.
25/8/53*(*Damn it!)
3. But Then Again, There Are Times When This “Cult of Personality”
(Type II Leadership) Stuff Actually Works!
“A leader is a dealer in hope.”
Napoleon
(+TP’s writing room pics)
4. Find the “Businesspeople”!
(Type III Leadership)
I.P.M. (Inspired Profit
Mechanic)
5. All Organizations
Need the Golden Leadership
Triangle.
The Golden Leadership Triangle: (1) Creator-
Visionary … (2) Talent Fanatic-Mentor-V.C. …
(3) Inspired Profit Mechanic.
6. Leadership Mantra
#1: IT ALL DEPENDS!
Renaissance Men are … a snare, a
myth, a delusion!
7. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14
World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky
Anderson—1 season.
The Leadership
Dance.
8. Leaders …
SHOW UP!
P.S. …
Mark McCormack: 5,000 miles for a 5
min. meeting!
9. Leaders … LOVE the
MESS!
“I’m not comfortable unless
I’m uncomfortable.”—Jay Chiat
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
10. Leaders
DO!
The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
11. Leaders
Re-do.
“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through version after version, until they get
something good enough. Then they leverage the power they’ve gained in
other markets to enforce their standard.”Seth Godin, Zooming
“If it works, it’s
obsolete.”
—Marshall McLuhan
12. BUT … Leaders
Know When to Wait.
Tex Schramm: The
“too hard” box!
13. Leaders Are …
Optimists.
Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
14. Leaders …
DELIVER!
“It is no use saying ‘We are doing our best.’ You have got to succeed in doing
what is necessary.” —WSC
“When assessing candidates, the first thing I looked for was energy and
enthusiasm for execution. Does she talk about the thrill of getting things
done, the obstacles overcome, the role her people played—or does she keep
wandering back to strategy or philosophy?” —Larry Bossidy,
Honeywell/AlliedSignal, in Execution
15. Leaders
FOCUS!
“To Don’t ” List
16. Leaders …
Set CLEAR DESIGN SPECS.
Danger: S.I.O. (Strategic
Initiative Overload)
JackWorld/1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
17. Leaders …
Send V-E-R-Y Clear Signals About
Design Specs!
Ridin’ with Roger: “What have you done to
DRAMATICALLY IMPROVE quality in the
last 90 days?”
It’s Relationships,
Stupid.
18. Leaders Trust in
TRUST!
Credibility!
If It Ain’t Broke … Break It.
19. Leaders …FORGET!/
Leaders … DESTROY!
Cortez!
Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
20. BUT … Leaders
Have to Deliver, So They Worry About “Throwing the Baby Out with the
Bathwater.”
“Damned If You Do, Damned If You Don’t, Just Plain
Damned.”Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)
21. Leaders …
HONOR THE USURPERS.
Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
22. Leaders Make [Lotsa] Mistakes
– and MAKE NO BONES ABOUT IT!
“Fail faster. Succeed sooner.”
David Kelley/IDEO
23. Leaders Make …
BIG MISTAKES!
“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
Create.
24. Leaders Know that
THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW
MARKETS.
No one ever made it into the Business Hall of Fame on a record of
“line extensions.”
25. Leaders Pursue
DRAMATIC DIFFERENCE!
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to
5%)
Source: Jump Start Your Business Brain, Doug Hall
26. Leaders … Make Their Mark /
Leaders … Do Stuff That Matters
“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
27. Leaders Push Their
Organizations W-a-y Up the Value-added/
Intellectual Capital Chain
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
28. Leaders
LOVE the New Technology!
100 square feet
29. Needed? Type IV Leadership: Technology
Dreamer-True Believer
The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent
Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True
Believer
Talent.
30. When It Comes to
TALENT … Leaders Always Swing
for the Fences!
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
31. Leaders “Manage” Their
EVP/Internal Brand Promise.
MantraM3
Talent = Brand
32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.
“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
Passion.
33. Leaders …
Out Their
PASSION!
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
34. Leaders Know: ENTHUSIASM
BEGETS ENTHUSIASM!
35. Leaders Focus on the
SOFT STUFF!
“Soft” Is “Hard”
- ISOE
The “Job” of Leading.
36. Leaders Know It’s
ALL SALES ALL THE TIME.
TP: If you don’t LOVE SALES … find
another life. (Don’t pretend
you’re a “leader.”) (See TP’s The Project50.)
37. Leaders
LOVE “POLITICS.”
TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend
you’re a “leader.”)
38. But … Leaders Also
Break a Lot of China
If you’re not pissing people off, you’re not making
a difference!
39. Leaders
Give … RESPECT!
“It was much later that I realized Dad’s secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a
bishop or a college president. He was seriously interested in who you were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
40. Leaders Say
“Thank You.”
“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
41. Leaders Are …
Curious.
TP/08.2001: The Three Most Important Letters …
WHY?
42. Leadership Is a …
Performance.
“It is necessary for the President to be the
nation’s No. 1 actor.”
FDR
43. Leaders … Are The Brand
The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-
to-moment actions.
44. Leaders …
Have a GREAT STORY!
Leaders don’t just make products and make decisions.
Leaders make meaning. – John Seeley Brown
Introspection.
45. Leaders …
Enjoy Leading.
“Warren, I know you want to ‘be’
president. But do you want to ‘do’
president?”
46. Leaders …
KNOW THEMSELVES.
Individuals (would-be leaders) cannot engage in a
liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty
control freaks.)
47. But … Leaders
have MENTORS.
The Gospel According to TP: Upon having the Leadership
Mantle placed upon thine head, thou shalt never hear the unvarnished
truth again!* (*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.)
48. Leaders … Take Breaks.
Zombie!Zombie!Zombie!Zombie!
The End Game.
49. Leaders ???
:
“LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES”
50. Leaders Know
WHEN TO LEAVE!
VIII. NEW BUSINESS. NEW
RULES.
20. Tom’s
60TIBs**TIB = This I Believe
1. TECHNICOLOR RULES! (Passion Moves Mountains!)2. Audacity Matters!3. Revolution Now!4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!)
6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you can’t take Silicon Valley out of the boy!)7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AIN’T SEEN NOTHIN’ YET!)9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT … OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)
11. “Permanence” Is a Snare & a Delusion. (Forget “Built to Last.” It’s Yesterday’s Idea.)12. Kaizen” (Continuous Improvement) Is … Dangerous.13. DESTRUCTION RULES!14. Forget It! (“Learning” = Easy. “Forgetting” = Nigh on Impossible.) 15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.)
16. Boring Begets Boring. (Cool Begets Cool.)17. Think “Portfolio.” (We’re All V.C.s.)18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism of What They’re Up To.)19. Action … ALWAYS … Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH … INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns!
21. Haste Makes Waste. (SO GO WASTE!)22. Screw-ups are … the … Mark of Excellence. (“Do It Right the First Time” Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!)24. TALENT TIME! (He/She Who Has the Best “Roster” Rules!)25. Re-do Education. Totally. (FOSTER CREATIVITY … NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)
26. Diversity’s Hour Is Now!27. SHE … Is the Best Leader!28. MARKETING MANTRA: Embrace the “BIG THREE” Demographics. (1) SHE … is the Customer. (For everything.) (2) Rapidly Aging Boomers Have … ALL THE MONEY. (3) Green … Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY … Gets It.) (Mere “Programs” Will Not Suffice.)29. Re-boot Healthcare. (UNDERSTATEMENT.)30. WHAT ARE WE SELLING? “Experiences” & “Solutions” > “Quality” & “Satisfaction.” (The Traditional Value-added Equation Is Being Set on Its Ear.)
31. DESIGN = New Seat of the Soul. 32. Branding Is for … EVERYONE. He Who Has the … BEST STORY … Takes Home the Marbles.33. DRAMATIC DIFFERENCE = Only Difference.34. WORDS/Language Matters … a Lot. (E.g.: Three Hearty Cheers for “Wow”!)35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: “Are You Proud of It?”)
36. eALL. (IS/IT: Half-way = No Way.)37. DREAM … Big! DREAM … Enormous. DREAM … Gargantuan. (These Are XXXL Times.)38. THINK MIKE! (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”)39. There Is Only … ONE BIG ISSUE. Cross- functional Communication.40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF “UN-DUMBING.”)
41. Beautiful Systems Are … BEAUTIFUL.42. The … WHITE-COLLAR REVOLUTION … Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT … OR EXTINCT!44. “Powerlessness” Is a State of Mind! Think: King. Gandhi. De Gaulle.45. Pursue Adventure … in Every Task.
46. EXCELLENCE … Is a State of Mind. (Excellence Takes a Minute.) (No Bull.)47. SHOW UP! (If You Care, You’re There.)48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your “TO DON’T” List.)49. LIFE IS SALES. (The Rest Is Details.)50. Boss Mantra #1: “I DON’T KNOW.” (“I Don’t Know” = Permission to Explore.)
51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (“Manager” = Hurdle Removal Professional.)52. Epitaph from Hell: “He Woulda Done Some Truly Cool Stuff … But His Boss Wouldn’t Let Him.”53. Change Takes However Long You Think It Takes. (Eschew … “Incrementalism.”)54. Respect! (Rule 1: Don’t Belittle!)55. “Thank You” Trumps All!
56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.)57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.)58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.)59. DISPENSE ENTHUSIASM!60. FUN …Is Not a 4-Letter Word. So, too … JOY. (And … GRACE.)
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