Tom Peters’
How New Business
Works: Rules for
Re-invention
01.20.2003
“If you don’t like
change, you’re
going to like
irrelevance even
less.” —General Eric Shinseki, Chief of
Staff, U. S. Army
Sequenom/David Ewing Duncan/Wired11.02
“Sequenom has industrialized the SNP [single
nucleotide polymorphisms] identification
process.” “This, I’m told, is the first time a
healthy human has ever been screened for the
full gamut of genetic-disease markers.” “On the
horizon: multi-disease gene kits, available at
Wal*Mart, as easy to use as home-pregnancy
tests.” “You can’t look at humanity separate from
machines; we’re so intertwined we’re almost the
same species, and the difference is getting
smaller.”
“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
“IT MAY SOMEDAY BE SAID THAT THE 21ST
CENTURY BEGAN ON SEPTEMBER 11, 2001. …
“Al-Qaeda represents a new and
profoundly dangerous kind of
organization—one that might be called
a ‘virtual state.’ On September 11 a virtual
state proved that modern societies are
vulnerable as never before.”—Time/09.09.2002
“The deadliest strength of America’s new adversaries
is their very fluidity, Defense Secretary Donald
Rumsfeld believes. Terrorist networks, unburdened by
fixed borders, headquarters or conventional forces, are
free to study the way this nation responds to threats
and adapt themselves to prepare for what Mr. Rumsfeld
is certain will be another attack. …
“ ‘Business as usual won’t do it,’ he said. His
answer is to develop swifter, more lethal ways to
fight. ‘Big institutions aren’t swift on their feet in
adapting but rather ponderous and clumsy and
slow.’ ”—The New York Times/09.04.2002
From:
To:
Weapon v.
Weapon
Org structure v.
Org structure
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“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.
“In an era when terrorists use satellite
US
gatekeepers stand armed
against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
phones and encrypted email,
Boston Globe (09.30.2001)
“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made
one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The
implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an
ineffective bombing campaign, and Washington was anguishing over whether
to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used
satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen
(much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures
to allow intelligence analysts and attack planners to work directly together.
Their favorite tool, incidentally, was instant messaging over a secure
network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/
OCT2002
“A Big Electronics
Show Is All About
Connections” —headline,
New York Times/ 01.13.2003/
Consumer Electronics Show >
COMDEX
NOKIA
Connecting
People
“SOS
: Emergency
Agencies Often Unable to Talk to
Each Other” —headline, p1, USA
Today/11.20.2002
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from
the lab to X-ray to records to physician order entry.
Patients don’t have to wait for anything. The
information from the physician’s office is in
registration and vice versa. The referring physician is
immediately sent an email telling him his patient has
shown up. … It’s wireless in-house. We have 800
notebook computers that are wireless. Physicians can
walk around with a computer that’s pre-programmed. If
the physician wants, we’ll go out and wire their house
so they can sit on the couch and connect to the
network. They can review a chart from 100 miles
away.—David Veillette, CEO, Indiana Heart Hospital
(Healthleaders/12.2002)
“If early soldiers idealized Napoleon or
Patton, network-centric warriors
admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce
data that is mined to help leaders develop
new strategic or tactical plans. Wal*Mart is
an example of translating information into
competitive advantage.”—Tom Stewart,
Business 2.0
The New Infantry Battalion/
New York Times/12.01.2002
“Pentagon’s Urgent Search for
Speed.” 270 soldiers (1/3rd normal
complement); 140 robotic off-road
armored trucks. “Every soldier is a
sensor.” “Revolutionary capabilities.”
Find-to-hit: 45 minutes to 15 minutes
… in just one year.
Eric’s Army
Flat.
Fast.
Agile.
Adaptable.
Light … But Lethal.
Brand You/ Talent/ “I Am An ARMY Of
One.”
Info-intense.
Network-centric.
The New Infantry Battalion/
New York Times/12.01.2002
“Pentagon’s Urgent Search for
Speed.” 270 soldiers (1/3rd normal
complement); 140 robotic off-road
armored trucks. “Every soldier is a
sensor.” “Revolutionary capabilities.”
Find-to-hit: 45 minutes to 15 minutes
… in just one year.
Uncertainty: We
don’t know
when things will get back
to normal.
We no longer
know what “normal”
means.
Ambiguity:
I Believe …
1. Change will accelerate. DRAMATICALLY.
2. We will RE-INVENT THE WORLD IN THE
NEXT TWO GENERATIONS. (Business …
Health Care … Politics … War …
Education … Fundamentals of Human
Interaction.)
3. OPPORTUNITIES are matchless.
4. You are either … ON THE BUS …
or … OFF THE BUS.
5. I WANT TO PLAY! AND YOU?
I. NEW
BUSINESS.
NEW
CONTEXT.
1.All Bets
Are Off.
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 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
Vernor Vinge/Mr. Singularity
“The transition time from human
history to post-human singularity
time, Vinge thinks, will be
astonishingly short—maybe one
hundred hours from the first
moment of computer selfawareness to computer world
conquest.”—Esquire/12.2002
“We are at a pivotal point in
history. … We are at one of a
half dozen turning points that
have fundamentally changed
the way societies are organized
for governance.” —Philip Bobbitt, The Shield
of Achilles: War, Peace, and the Course of History
“There’s going to be a
fundamental change in the
global economy unlike
anything we have had since
the cavemen began bartering.”
Arnold Baker, Chief Economist,
Sandia National Laboratories
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
“In 25 years, you’ll
probably be able to get the
sum total of all human
knowledge on a personal
device.”
Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T]
[Barron’s 11.13.2000]
“I genuinely believe we
are living through the
greatest intellectual
moment in history.”
Matt Ridley, Genome
“Doctors are faced with the very
real threat of irrelevance in ten
years. You’ll go to a lab, have a
blood sample drawn, and a readout
of your genetic deficiencies will be
produced—along with ‘Doctor’s
Orders’ for appropriate treatment;
only there won’t be any doctor.”
—Leading Pediatric Cardiologist (11.2002)
Yo, Bioinformatics!
“Researchers say they have found
a way to mate human cells with
circuitry in a ‘bionic chip’ … The
tiny device – smaller and thinner
than a strand of hair – combines a
healthy human cell with an
electronic circuitry chip.”
AP/AOL/02-00
“Help! There’s nobody in the
cockpit. In the future, will the
airlines no longer need pilots?”
Grumman Global Hawk/
24 hours/ Edwards to South
Australia
Source: The Economist/12.21.2002
“We are in a
brawl with no
rules.”
Paul Allaire
“Strategy meetings held once
or twice a year” to “Strategy
meetings needed several
times a week”
Source: New York Times on Meg Whitman/eBay
2. The
Destruction
Imperative.
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
C.E.O.
to
C.D.O.
“Facing Crisis, Media
Giants Scrounge for
Fresh Strategies”
—headline, P1, Wall Street
Journal/ 01.14.2003
“We must not only transform our armed forces
but the Defense Department that serves them—
by encouraging a culture of creativity and
intelligent risktaking. We must promote a more
entrepreneurial approach: one that encourages
people to be proactive, not reactive, and to
behave less like bureaucrats and more like
venture capitalists; one that does not wait for
threats to emerge and be ‘validated,’ but rather
anticipates them before they appear and
develops new capabilities to dissuade them and
deter them.” —Donald Rumsfeld, Foreign Affairs
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
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
found that none of the long-term
survivors managed to outperform the
market. Worse, the longer companies
had been in the database, the worse
they did.”—Financial Times/11.28.2002
Survivors
underperform.”
“It’s just a fact:
—Dick Foster
“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
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
I’m sure
there are success stories
out there, but at this
moment I draw a blank.”
Committee, answered:
Mark Sirower, The Synergy Trap
“Conglomerates
don’t work” —James
Surowiecki, The New Yorker (07.01,2002)
“MERGERS: Why Most Big
Deals Don’t Pay Off. A
BusinessWeek analysis
shows that 61% of buyers
destroyed shareholder
wealth.” —BusinessWeek/10.14.2002
“I believe large research
organizations are less transparent,
with less communication and more
bureaucracy and it is more difficult
and problematic to produce
innovations in large institutions.”—
Franz Humer, CEO, Roche
Way to Go, Guys …
2002 write downs
from recent
acquisitions …
$1,000,
000,000,
000*
*$1 trillion (Source: Harper’s Index 04.2002)
“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
The [New] Ge Way
DYB.com
Top-performing Companies
“Extremely contentious
boards that regard
dissent as an obligation
and that treat no subject
as undiscussable”
—Jeffrey
Sonnenfeld, Yale School of Management
“Change the
rules before
somebody else
does.”
—Ralph Seferian, VP, Oracle
“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
RM: “A lot of companies in the
Valley fail.”
RN: “Maybe not enough fail.”
RM: “What do you mean by that?”
RN: “Whenever you fail, it means
you’re trying new things.”
Source: Fast Company
“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)
Silicon Valley Success
[Failure?] Secrets
“Pursuit of risk”: 4 of 20 in V.C.
portfolio go bust; 6 lose money;
6 do okay; 3 do well;
1 hits the jackpot
Source: The Economist
Axiom (Hypothesis): We have
been screwed by Benchmarking
… Best Practice … C.I./Kaizen.
Axiom (Hypothesis): We need
Masters of Discontinuity/
Masters of Ambiguity … in
discontinuous/ambiguous
times.
“In the modern military, risk is
anathema to rising stars, who
cannot afford any slip-ups on
their records. ‘Zero defects’ and
‘zero tolerance’ are common
bywords.”—Newsweek/09.16.02
“Organize” for …
performance & customer
satisfaction.
“Disorganize” for …
renewal & innovation.
“Rumsfeld values
mavericks and tries
to protect and
promote them.” —
Newsweek/ 09.16.02
“Rose gardeners face a choice every spring: how to prune our roses. The
long-term fate of a rose garden depends on this decision. If you want to have
the largest and most glorious roses of the neighborhood, you will prune
hard. You will reduce each rose plant to a maximum of three stems. This
represents a policy of low tolerance and tight control. You force the plant to
make the maximum use of its available resources, by putting them into the
the rose’s ‘core business.’ However, if this is an unlucky year [late frost, deer,
green-fly invasion], you may lose the main stems or the whole plant! Pruning
hard is a dangerous policy in an unpredictable environment. Thus, if you are
in a spot where you know nature may play tricks on you, you may opt for a
policy of high tolerance. You will leave more stems on the plant. You will
never have the biggest roses, but you have a much-enhanced chance of
having roses every year. You will achieve a gradual renewal of the plant. In
short, tolerant pruning achieves two ends: (1) It makes it easier to cope with
unexpected environmental changes. (2) It leads to a continuous restructuring
of the plant. The policy of tolerance admittedly wastes resources—the extra
buds drain away nutrients from the main stem. But in an unpredictable
environment, this policy of tolerance makes the rose healthier. Tolerance of
internal weakness, ironically, allows the rose to be stronger in the long
run.”—Arie De Geus, The Living Company
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.”
“The Word(s)” on Vitality:
Gary Hamel
“Sell By” [jettison old crap]
Spin Out [support entrepreneurs]
Spin In [buy young firms]
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)
Jim & Tom.
Joined at the
hip.
Not.
Huh?
“Quiet, workmanlike, stoic
leaders bring about the big
transformations.”--JC
Pastels?
T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin
A. Lincoln/U. S. Grant/W. T. Sherman
TR/FDR/LBJ/RR/JFK
M.L. King
C. de Gaulle
M. Gandhi
W. Churchill
M. Thatcher
Picasso
Mozart
Copernicus/Newton/Einstein
J. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S.
McNealy
A. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison
Jim Collins vs. Michael Maccoby
“quiet, workmanlike, stoic”
vs.
“larger-than-life leaders”/ “egoists,
charmers, risk-takers with big
visions”: Carnegie, Rockefeller,
Edison, Ford, Welch, Jobs, Gates
“But what if [former head of strategic planning
at Royal Dutch Shell] Arie De Geus is wrong in
suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is
fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a
business organization, an artist, an athlete or a
stockbroker may be to explode in a dramatic
frenzy of value creation during a short
space of time, rather than to live forever.”
Kjell Nordström and Jonas Ridderstråle,
Funky Business
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)
“The Futility of Size …
“Virtualization is the recognition
that territorial size does not
solve economic problems. …
Economic access must become
the substitute for increasing
domain.”
Richard Rosecrance, The Rise of the Virtual State
“In Italy for 30 years under the Borgias
they had warfare, terror, murder,
bloodshed—and produced
Michelangelo, da Vinci and the
Renaissance. In Switzerland they had
brotherly love, 500 years of democracy
and peace, and what did they
produce—the cuckoo clock.”
Orson Welles, as Harry Lime, in “The Third Man”
Warren Bennis & Patricia Ward Biederman/
Great
Groups Don’t
Last Very Long!
Organizing Genius:
W.A. Mozart
1756 – 1791
HE CHANGED THE WORLD
AND
ENRICHED HUMANITY
“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)
“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!
Jane Jacobs:
Exuberant
Variety vs. the Great Blight of Dullness.
F.A. Hayek: Spontaneous
Discovery Process.
Joseph Schumpeter: the Gales of
Creative Destruction.
Eglin Flag: “100% AGAINST
ZERO DEFECTS”
“General, if you’re not having
accidents, your training program is
not what it should be. … You need
to kill some pilots.”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
OODA Loop/Boyd Cycle
“Unraveling the competition”/ Quick
Transients/ Quick Tempo (NOT JUST
SPEED!)/ Agility/ “So quick it is
disconcerting” (adversary over-reacts or
under-reacts)/ “Winners used tactics that
caused the enemy to unravel before the
fight” (NEVER HEAD TO HEAD)
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
“Fast Transients”
“Buttonhook turn” (YF16:
“could flick from one maneuver to
another faster than any aircraft”)
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
“Blitzkrieg is far more than lightning
thrusts that most people think of
when they hear the term; rather it was
all about high operational tempo
and the rapid exploitation of
opportunity.”/ “Arrange the mind of
the enemy.”—T.E. Lawrence/
“Float like a butterfly, sting like a
bee.”—Ali
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
F86 vs. MiG/Korea/10:1
Bubble canopy (360 degree view)
Full hydraulic controls (“The F86
driver could go from one maneuver to
another faster than the MiG driver”)
MiG: “faster in raw acceleration and
turning ability”; F86: “quicker in
changing maneuvers”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
USMC COL Mike Wyly: “kept
the enemy off-balance;
they knew Delta
Company [RVN] could
show up anywhere,
anytime”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
“Maneuverists”
BOYD: The Fighter Pilot Who
Changed the Art of War (Robert Coram)
“The stuff has got to be
implicit. If it is explicit,
you can’t do it fast
enough.”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
II. NEW
BUSINESS.
NEW TECH.
3. The White
Collar Revolution
& the Death of
Bureaucracy.
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
“The coefficient of
friction associated with
the grunge of business
is amazing!”
Michael Schrage
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
IBM’s Project
eLiza!*
* “Self-bootstrapping”/ “Artilects”
There Is No Such Thing
as the Tooth Fairy.
IBM Self-healing
eServers*
*Approximate TV ad copy (11.2002)
“We own all the intellectual
property, we farm out all the
direct labor.”
Jim McDonnell, VP, IBM
[“Don’t own nothin’ if
you can help it. If you
can, rent your shoes.”
F.G.]
“The virtual corporation is
research, development, design,
marketing, financing, legal, and
other headquarters functions wth
few or no manufacturing
capabilities – a company with
a head but no body.”
Richard Rosecrance, The Rise of the
Virtual State
Deep Blue Redux*: 2,240
EKGs
… 1,120 heart attacks.
Hans Ohlin
: 620.
Lars Edenbrandt’s
software: 738.
(50 yr old chief of coronary care, Univ of
Lund/SW)
*Only this time it matters!
“Most physicians believe that
diagnosis can’t be reduced to a set of
generalizations—to a ‘cookbook.’ …
How often does my intuition lead me
astray? The radical implication of the
Swedish study is that the
individualized, intuitive approach that
lies at the center of modern medicine
is flawed—it causes more mistakes
than it prevents.” —Atul Gawande, Complications
“Doctors are faced with the very
real threat of irrelevance in ten
years. You’ll go to a lab, have a
blood sample drawn, and a readout
of your genetic deficiencies will be
produced—along with ‘Doctor’s
Orders’ for appropriate treatment;
only there won’t be any doctor.”
—Leading Pediatric Cardiologist (11.2002)
Probable parole violations: Simple model
(age, # of previous offenses, type of crime)
beats M.D. shrinks.
100 studies: Statistical formulas > Human
“In virtually all
cases, statistical thinking
equaled or surpassed
human judgment.”—Atul Gawande,
judgment.
Complications
“Unless mankind redesigns
itself by changing our DNA
through altering our genetic
makeup, computergenerated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
Vernor Vinge/Mr. Singularity
“The transition time from human
history to post-human singularity
time, Vinge thinks, will be
astonishingly short—maybe one
hundred hours from the first
moment of computer selfawareness to computer world
conquest.”—Esquire/12.2002
N.W.O./Holy Moly:
Unemployment up 2%
… real wage growth
highest since 60s …
productivity soaring.
Source: BW/02.11.2002
E.g. …
Jeff Immelt: 75% of “admin, back
room, finance” “digitalized” in
years.
Source: BW (01.28.02)
Everybody’s Doin’ It!
“The leading Indian
outsourcers reckon that the
key to their long-term
prosperity is bagging ever
larger deals and moving
ever higher up the value
chain.” —The Economist/01.11.2003
4. IS/ IT/
Web … “On the
Bus” or “Off the
Bus.”
2.5G, 3G, 4G
Windows
Symbian
Java
Bluetooth
Wi-Fi
PCs-PDAs-Cell“phones”
E-business vs. M-business
Etc.
Outsider’s view: (1) Billions are
being spent, even in a down
market. (2) NOBODY HAS A
CLUE AS TO WHO THE
WINNERS—AND LOSERS—
WILL BE. (3) Yet you must play.
Now. Hard. Fast.
square feet
Dell’s OptiPlex Facility
Big Job: 6
to 8 hours.
(80,000 per day)
Parts Inventory:
square feet.
The Real “News”: X1,000,000
TowTruckNet.com
Impact No. 1/ Logistics &
Wal*Mart …
Dell … Amazon.com …
Autobytel.com …
FedEx … UPS … Ryder
… Cisco … Etc. … Etc.
… Ad Infinitum.
Distribution:
$400.
Wal*Mart: 13%.
Autobytel:
Source: BW(05.13.2002)
“If early soldiers idealized Napoleon or
Patton, network-centric warriors
admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce
data that is mined to help leaders develop
new strategic or tactical plans. Wal*Mart is
an example of translating information into
competitive advantage.”—Tom Stewart,
Business 2.0
Supply-chain
Optimization
From:
Design-chain
Optimization
To:
Source: Cadence Design Systems
“A Big Electronics
Show Is All About
Connections” —headline,
New York Times/ 01.13.2003/
Consumer Electronics Show >
COMDEX
NOKIA
Connecting
People
“SOS
: Emergency
Agencies Often Unable to Talk to
Each Other” —headline, p1, USA
Today/11.20.2002
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from
the lab to X-ray to records to physician order entry.
Patients don’t have to wait for anything. The
information from the physician’s office is in
registration and vice versa. The referring physician is
immediately sent an email telling him his patient has
shown up. … It’s wireless in-house. We have 800
notebook computers that are wireless. Physicians can
walk around with a computer that’s pre-programmed. If
the physician wants, we’ll go out and wire their house
so they can sit on the couch and connect to the
network. They can review a chart from 100 miles
away.—David Veillette, CEO, Indiana Heart Hospital
(Healthleaders/12.2002)
All to All
?: Americans on the Web/03.2002
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
157,000,000*
* +2M/mo.
Source: Newsweek (03.25.2002)
WebWorld = Everything
Web as a way to run your business’s innards
Web 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 Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction-free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
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,
bottleneckedcommunication, six-layer
organization.
“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
We
sell speed.”
insurance anymore.
Peter Lewis, Progressive
The New Infantry Battalion/
New York Times/12.01.2002
“Pentagon’s Urgent Search for
Speed.” 270 soldiers (1/3rd normal
complement); 140 robotic off-road
armored trucks. “Every soldier is a
sensor.” “Revolutionary capabilities.”
Find-to-hit: 45 minutes to 15 minutes
… in just one year.
“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!
…
“Don’t rebuild.
Reimagine.”
The New York Times Magazine on the future of
the WTC space in Lower Manhattan/09.08.2002
HUMANA’s Dreams. Emphesys: “Put everything
on the Internet.” CEO Mike McCallister, charge to
200-person “outside” I’net unit: “Imagine an
ideal Web-based health insurance system and
then create a product as close as possible to
that vision.” Start with own employees:
SmartSuite. Member employees: “Plan their
own coverage and shoulder more costs.” Dell
is model: “Fully customized health for every
individual.” Marketing pitch for employers:
“Buy choice for employees through a single
source—Humana.”
Source: Fortune/05.27.2002
“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
[ Words to Live By …
“Hierarchy is an
organization with its face
toward the CEO and its ass
toward the customer.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business]
“Hyperlinks subvert
hierarchy!”
The Cluetrain Manifesto
Case:
CRM
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“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
“Parents, doctors, stockbrokers,
even military leaders are starting to
lose the authority they once had.
There are all these roles premised on
access to privileged information. …
What we are witnessing is a
collapse of that advantage,
prestige and authority.”
Michael Lewis, next
“A seismic shift is underway in
healthcare. The Internet is
delivering vast knowledge and new
choices to consumers—raising their
expectations and, in many cases,
handing them the controls.
[Healthcare] consumers are driving
radical, fundamental change.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
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!
UBIQUITY! “It’s the cars, not
the tires, that squeal”:
NYT/Circuits/10.25.01): E-ZPass
(6M in NE), tests with McD’s,
gas stations and parking lots
next. OnStar (GM/1.5M). Plus:
“black boxes,” GPS (the case of
the $450 ticket), CA smog
offenders.
“CRM has, almost
universally, failed
to live up to
expectations.”
Butler Group (UK)
FT: “The aim [of
CRM] is to make customers
feel as they did in the preelectronic age when service
was more personal.”
No! No! No!
Rebuttal: (1) Service sucked in the
“pre-electronic” age. (2) NewGen
believes in the screen! (So do I.)
One Person’s Opinion
TP to reporter:
“Service is
MUCH better! Would you go
back to bank tellers and phone
operators? Value that I place on
a “smile”: 3 on a scale of 10. Value
I place on fast & accurate “digital”
response: 11 on a scale of 10!!
-5% defections =
+25% to +85% profit. Lose
15% to 35% p.a. 69% defect
as a result of lousy sales or
service experience. (Q: But
is this the point???? A: Yes.
No.)
M. Rogers:
CGE&Y (Paul Cole): “Pleasant
“Systemic
Opportunity.” “Better job
of what we do today” vs. “Rethink overall
enterprise strategy.”
Transaction” vs.
Message CRM: Madness = 600 CRM
vendors. ???: “Do it all” or “do
something.” Past: over-invest in lowvalue customers. Idea: better
experience, not off-load work to
customer. Relationship = f(dialogue
& knowledge & duration). Key: new
attitudes, DESTRUCTION of
functional barriers to info & action.
Wells Fargo ($285B): Master of B&C
3M
$900M since ’99.
. 1/3rd of chk
acct customers on line. 5,400
branches: 4 of 5 who do product
research on line purchase at branch.
Wire transfer, save 30%; 17% less
calls. Material diff to bottom line.
Source: BW Online (03.20.02)
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 offline; 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
The Cluetrain
Manifesto
“Hyperlinks subvert
hierarchy!”
The Cluetrain Manifesto
Corporate Resistance to “It”
“It all goes back to fear of
losing control!”
The Cluetrain Manifesto
“E-business is the
final nail in the coffin
for bureaucracy at
GE.”
Jack Welch/
GE Annual Report 2000
[ Words to Live By …
“Hierarchy is an
organization with its face
toward the CEO and its ass
toward the customer.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business]
Richard Rosecrance, The
Rise of the Virtual State:
Wealth and Power in the
Coming Century
Hong Kong:
Prototypical “Virtual State”
83% Service
8% 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
“Imagine a world where a citizen
could search the globe to
assemble “my government,”
the ultimate in customized,
customer-centric services. Health
care from the Netherlands,
business incorporation in
Malaysia …”
Don Tapscott
“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/Flextronics
2. Substantial R&D to India
3. Division for licensing technology
4. JV with Sony on “crown jewel” handsets
5. 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.
“At the ultimate stage, competition
among nations will be competition
among educational systems, for
the most productive and richest
countries will be those with the
best education and training.”
Richard Rosecrance,
The Rise of the Virtual State
What’s the Common Denominator?
The Dutch … the British … the
Rothschilds … Cargill … Sumitomo …
the KGB … the CIA … Mossad …
Enron … Wal*Mart … McKinsey …
FedEx … UPS … Mr. Speaker … Henry
Kissinger … Executive secretaries …
the Corner Grocer … Women-ingeneral?
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.
TP to NAPM:
You are the …
Rock Stars
of the
B2B Age!
Message: You are
Re-invention
Evangelists!
Chicago
November 1999:
HRMAC
“support function” / “cost
center” / “bureaucratic
drag”
or …
Are you “Rock
Stars of the
Age of Talent”
“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Proprietary Point of View (Methodology)
W.W.P.F. (100%)/Outside Clients (25%++)
When: Now!
BMW’s
Designworks/USA:
>50% from outside
work
Bill of (SELECTIVE) Rights
YOU HAVE THE RIGHT TO CHOOSE
YOUR CLIENTS! (Wanna be-stay-get
COOL … Work With Cool Clients!)
(YOU ARE YOUR CLIENT LIST.) (LIFE
IS TOO SHORT TO WORK WITH
JERKS.) (Mass marketers: TARGET
INNOVATION. E.g.: African-Americans
… Hispanics … the Aging Population
… Greens … Women)
Culture Change is not “Corporate.”
Culture Change is not a “Program.”
Culture Change does not take “Years.”
Culture Change does not start “Today.”
Culture Change starts Right
Culture Change
Now!
Lives in the Moment!
Culture Change is
Entirely in Your Hands!
What Do I “Do” First?
One Minute
Excellence!*
*Thomas Watson
C.I.O.
to
C.E.F.R.N.S.*
*Chief Evangelist For
Really Neat Stuff
G.M. = The Recruitment and
Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets
on Projects. [Period!]
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
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)
The “PSF Problem”
“Professionalism” =
Arrogance = Pseudoscience. “Hear no evil,
see no evil, don’t rat out
your peers” … Docs, Teachers,
Clergy (Law), Accts (Berardino)
Everybody’s Doin’ It!
“The leading Indian
outsourcers reckon that the
key to their long-term
prosperity is bagging ever
larger deals and moving
ever higher up the value
chain.” —The Economist/01.11.2003
6. The Heart of the Value
Added Revolution:
PSFs Unbound/ The
“Solutions
Imperative.”
Base Case: The
Sameness Trap
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, A Unique Moment
“While everything may
it is also
increasingly
the same.”
be better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“When McDonald’s first started
exporting its formula of quality,
cleanliness and service, it was
something of a novelty. … These
days, quality, cleanliness and
service are a given—and people
are becoming more interested in
what they are eating.” —FT/12.21.2002
“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, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
Funky Business: “To succeed we
must stop being so goddamn
normal. In a winner-takes-all world,
normal =
nothing.”
“When we did it
‘right’ it was
still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
“Customers will try ‘low cost
providers’ … because
the
Majors have not
given them any clear
reason not to.”
Leading Insurance Industry Analyst
SWA >
American +
Continental + Delta + Northwest +
United + USAirways.
Source: Boston Globe (12.22.2001)
Getting Beyond Lip Service!
“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
“The Internet is the most effective profitkiller on earth … it stimulates a TRUE
FREE MARKET; and a real free market is
the most dangerous of marketplaces for
companies selling the SAME OLD STUFF.
To those with COURAGE, free markets are
great—they help kill off the deadwood
competitors who don’t have the courage
to change—making way for them to
LEVERAGE their DRAMATIC DIFFERENCE
into profitable growth.”—Doug Hall
Everybody’s Doin’ It!
“The leading Indian
outsourcers reckon that the
key to their long-term
prosperity is bagging ever
larger deals and moving
ever higher up the value
chain.” —The Economist/01.11.2003
The
Day!
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Systems
Integrator of
choice. Global Services:
Gerstner’s IBM:
$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/Flextronics
2. Substantial R&D to India
3. Division for licensing technology
4. JV with Sony on “crown jewel” handsets
5. 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
Was: “Big
Iron”
Transformer Dudes
Division.
Is: Air
Traffic Controllers
of Electrons.
Was: Bunch
of Guys Who
Make Circuit Breakers
Division.
Is: GE
Industrial Systems.
E.g. …
UTC/Otis + Carrier:
boxes to “integrated
building systems”
Units of
“Coolth”
Leased AC:
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
“A little-known fact: Siemens is
now the world’s largest application
service provider* to the health
business. Digitally stored X rays,
recordkeeping, the cameras that
guide surgeons in the operating
theater—all run on Siemens
software” —Forbes/09.16.2002
*E.g.: “Siemens is giving Health South an all-digital ‘hospital of the future.’ ”
“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)
New Springs = Turnkey
Flexible sourcing.
Collections.
Packaging.
Merchandising.
Promotion.
Systems & Site mgt.
“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
“Our mission is to go from being the
world’s premier timeshare—which is a
large idea in a small industry—to being
what we call the market makers for
global travel and leisure. We need
to enable developers to be involved in
more travel and leisure products,
rather than just the timeshare side.”—
Ken May, RCI (Source: Developments)
“VISIONS OF A BRAND-NAME
OFFICE EMPIRE. Sam Zell is not a man
plagued by self doubt. Mr. Zell controls public
companies that own nearly 700 office buildings
in the United States. … Now Mr. Zell says he will
transform the real estate market by turning
those REITs into national brands. … Mr. Zell
believes [clients] will start to view those offices
as something more than a commodity chosen
chiefly by price and location.” –New York Times
(12.16.2001)
“ ‘Architecture’ is
becoming a commodity.
Winners will be ‘Turnkey
Facilities Management’
providers.”
SMPS Exec
“We are a ‘real estate
facilities consulting’
organization, not just
an ‘interior design’
firm.”
Jean Bellas, founder, SPACE (from SMPS Marketer)
Omnicom:
57%
(of
$6B) from marketing services
Who was the
number one
employer of
architecture school
grads in the U.S.
last year?
Eat Or
Be Eaten.
Message:
HP. Sun. IBM. GE/PS.
GE/IS. (GE/AE. GE/MD.)
UTC. Farmers. Delphi.
UPS/ FedEx/ Ryder.
Springs. Omnicom. IDEO.
Accenture. Equity Office
Properties. RCI. Etc. Etc.
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.
(1) 108X5 to
8X1/ eLiza/ 100sf. (2)
Dept. to PSF/ WWPF. (3)
V.A. via PSFs Unbound/
“Solutions”/ “Customer
Success.”
Core Logic:
Model2002/3/4/5/??
Dell* + IBM** =
Magic
*Cut (ALL) the bullshit
**Add (LOTSA) “soft”/“integrative”/“experiences” value
The Seagate
Exception. (Paradox?
Possibility?)
7. The …
Solutions25.*
*NO MORE “SILOS.” NO MORE
“STOVEPIPES.” (DAMN IT.)
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.
“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 &
Rene Tissen, Zero Space: Moving Beyond Organization Limits.
“In an era when terrorists use
satellite phones and encrypted
email, US gatekeepers stand
armed against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
Boston Globe (09.30.2001)
“Once devised in Riyadh, the tasking order took hours
to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper
communications gear that would have connected the
Navy with its Air Force counterparts. … To
compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to
pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy
machines at full tilt, and distribute the documents to
the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful
computer technology and other
modern information-based
systems we could make a
revitalized, leaner military force
that is designed to outsee,
outmaneuver and outfight any
foe.” —Bill Owens, Lifting the Fog of War
“P&G, Unilever and
Others Are Trying an
Experiment: Giving
Marketing More Say
Over Research”
—Advertising
Age (03.25.2002)
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 CUSTOMERPARTNER.)
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!
Q: Is that all there is?
A: Quite possibly.
“Roche’s New Scientific Method”—Fast
Company. And? X-Functional
Teams (NO STOVEPIPES!).
“Fail fast.” “The only way to
embrace a technological revolution,
Roche has discovered, is to unleash
an organizational revolution.”
Duh???*: “We’ve come up with a solution.
… We’ve begun to create a form of
communications that is much better than
we had before, and that’s allowed us to
gather better data. We’ve finally realized
that we have an interplay with other
hospitals and with pre-hospital.”—Dr. Ben
Honigman, ER, U. Colorado Hospital, on “diverts” (Denver
Post/05.05.02)
*Internet + Data + Open data exchange + Barrier busting
Innovation & Speed’s “New Basics”*
1. XFTs are the “culture.”
2. Project-centric.
3. Open “talent market.”
4. “Cause-based” projects.
5. Ubiquitous “open systems”
IS—at home & throughout
supply chain. Web based.
6. F-L-A-T.
7. EVP (S.O.U.B), etc.
*Innovation, Speed, CRM, “Experience”/ “Solution” demand this
XF25: WOW Projects (100%). Physical
Co-location (geologists &
geophysicists). Strategic firings of turf
kings (top performer goes). Bonuses
(big). Deep dipping. Job rotation
(musical chairs at the top). EVP/SOUB.
Lots of kids (Instant Messaging). Early
Proj Mgt experience. Take techies on
sales calls. Symbolic stuff (black
berets).
“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
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 [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
“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
“Guinness as a brand
is all about community.
It’s about bringing people
together and sharing
stories.”—Ralph Ardill, Imagination, in re
Guinness Storehouse
WHAT CAN BROWN DO FOR YOU?
From “Service’ to “Cause”
7X. 730A800P. F12A.*
*Plus: WOW Department’” “Kill a Stupid Rule” contests,
etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce
Bank/NJ ($10B). Source: FC05.02.
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
Message:
“Experience” is the
“Last 80%”
P.S.: “Experience” applies to all work!
1940: Cake from flour, sugar (raw materials
economy): $1.00
1955: Cake from Cake mix (goods economy):
$2.00
1970: Bakery-made cake (service
economy):
$10.00
1990: Party @ Chuck E. Cheese
(experience economy)
$100.00
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
Experience It!
“Living Room, To Go: Cars of
the future will be sanctuaries,
with mood lighting, aroma
therapy and massage seats. For
long drives: movies and
popcorn” —headline,
Newsweek/11.25.2002
“Lexus sells its cars as
containers for our
sound systems. It’s
marvelous.”—Sidney Harman/
Harman International
It’s All About EXPERIENCES: “Trapper” to
“Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”;
$750-$1,000 for flood-control
piping … so that beavers
can stay.
Source: WSJ/05.21.2002
“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 …
Story
Adventure
Smile
Focus
Plot
Passion
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
Hire a
theater director, as
a consultant or
FTE!
First Step (?!):
“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, A Unique Moment [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
“Women don’t buy
They
join them.”
brands.
EVEolution
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
Ladder Position
Measure
Solutions
Success
(Experiences)
Services
Satisfaction
Goods
Six-sigma
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
BVD
Payless
Hyundai
Suzuki
Atlantic City
New Jersey
Carter
Conners
CNN
Starbucks
Victoria’s Secret
Ferragamo
Ferrari
Harley-Davidson
Acapulco
California
Kennedy
Pele
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
“Soul”
of “Experiences”:
[Mostly Ignored]
Design Rules!
Design Myths.
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
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
Lady Sensor, Mach3, and …
$70M on developing the
OralB CrossAction toothbrush
23 patents, including 6 for the
packaging
Source: www.ecompany.com [06.00]
Design2002
LISTERENE’s … PocketPaks
WESTIN’s … Heavenly
Westin’s …
Heavenly
Bed
Design’s place in
the universe.
And Tomorrow …
“Fifteen years ago companies
competed on price. Now it’s
Tomorrow
it’s design.”
quality.
Robert Hayes
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
“Design is treated
like a religion at
BMW.”
Fortune
“The new Beetle fails at
most categories. The only
thing it doesn’t fail in is
drop-dead charm.”
Jerry Hirshberg, Nissan Design International
Auto Designers at Milan Fashion Shows!
“Welcome to the world of the
celebrity car designer, a new
breed increasingly responsible
for the fortunes of the world’s
big car companies. We live in a
designer world, and the car
designers are at its heart.” —The
Economist/12.21.2002
Object of Desire!
“Every now and then, a design comes
along that radically changes the way we
think about a particular object. Case in
point: the
iMac. Suddenly, a computer
is no longer an anonymous box. It is a
sculpture, an object of desire,
something that you look at.”
Katherine McCoy & Michael McCoy,
Illinois Institute of Technology
“The good 10 percent of
American product design comes
out of big-idea companies that
don’t believe in talking to the
customer. They're run by
passionate maniacs who make
everybody’s life miserable until
they get what they want.”
Bran Ferren, Applied Minds/Wired 1-2001
“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
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
Check Out the Language:
“Tomorrow it’s design …”
“Design is the only thing …”
“Design is … religion ...”
“Drop-dead charm …”
“Object of desire …”
“Passionate maniacs …”
“Fundamental soul …”
Bottom Line.
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
All Time
No.1 (TP)
Ziplocs
Design “is” … WHY I
GET MAD.
MAD.
Wanted: THE
DESIGNER OF MY
RADIO SHACK
PHONE. Major
Reward!
Design is never
neutral.
DESIGN is the
principal difference
between love and
hate!
Hypothesis:
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 productservice-experience stands out … or doesn’t.
Furthermore, it’s another “one of those things”
that damn few companies put – consistently – on the
front burner.
Message (?????): Men
cannot design for women’s
needs.
“Perhaps the macho look
can be interesting … if you
want to fight dinosaurs. But
now to survive you need
intelligence, not power and
aggression. Modern intelligence
means intuition—it’s female.”
Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
Step No. 1:
NOTEBOOK
POWER!
[Start recording the awesome & the
awful]
User …
STOP
BLAMING
YOURSELF!
(Don
Norman/Design of Everyday Things)
“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
11. Design+ =
“Beautiful”
Systems.
Fred S.’s “mediocre”
thesis. Herb K.’s
napkin.
Great design =
One-page
business plan (Jim
Horan)
There Are Lawyers … and Then There Are
Lawyers: John De Laney/ICM
ANYTHING TRULY
IMPORTANT CAN BE
BOILED DOWN TO
RD
1/3 PAGE.*
(*NO SHIT.)
K.I.S.S.:
Gordon Bell (VAX
500/50.
daddy):
Chas.
Wang (CA): Behind schedule?
Cut least
productive 25%.
have. Must
hate. / Must
design. Must undesign.
Systems: Must
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, A Unique Moment
“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
Companies will
thrive on the basis of their stories
and myths. Companies will need to understand
to how we work with others.
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!)
RD
3
Law: DRAMATIC
DIFFERENCE (Execs Don’t Get It:
See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions:
“How likely are you to
purchase this new product or
service?” (95% to 100% weighting by execs)
“How unique is this new
product or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall,
Jump Start Your Business Brain
“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
“Instead of having the
brand be seen as goodbetter-best for the same
type of clothing, they’ve
got to give it more
uniqueness.” —David Martin,
Interbrand US, on The Gap’s problems
“You do not merely want to
be the best of the best. You
want to be considered
the only ones who do
what you do.”
Jerry Garcia
“A great company
is defined by the
fact that it
is not compared
to its peers.”
Phil Purcell, Morgan Stanley
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
“We’re not going to be driven
by where we think a funding
agency would like to see us go.
We’re going to build our case …
and then find an organization
that agrees with us.”
Stephen Spongberg, Polly Hill Arboretum
“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!
Branding: Is-Is Not “Table”
TNT is not:
TNT is:
TNT is not:
Juvenile
Contemporary
Mindless
Meaningful
Elitist
Predictable
Suspenseful
Dull
Frivolous
Exciting
Superficial
Powerful
Old-fashioned
Slow
Self-important
“Salt is salt is salt. Right? Not when it
blue box
comes in a
with a
picture of a little girl carrying an umbrella.
Morton International continues to
dominate the U.S. salt market even though
it charges more for a product that is
demonstrably the same as many other
products
on the shelf.”
Tom Asaker, Humanfactor Marketing
What Can [Can’t] Be Branded?
“Branding is not a problem if you have the
right mentality. You go to your team and
you pin up a $200 Swiss Army Watch.
Competing in the ridiculously crowded
sub-$200 watch market, they made it into
a brand name, named after the most
irrelevant and useless thing in history [the
Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
V. NEW BUSINESS.
NEW WORK.
13. Toward Work
that Matters: The
WOW Project.
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
TP: “Your ‘signature’ is not
‘I work for Dow.’ It’s, ‘’I
accomplished [INCREDIBLY
COOL PROJECT] while I
was associated with Dow.’”*
*Terms: Signature. Portfolio. Projects. Braggables.
Language
matters! Wow!
BHAG! “Takes
your breath
away!”
“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!)
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
Language
matters!
“We shape our
buildings. Thereafter
they shape us.”—WSC
“We shape our
words. Thereafter
they shape
us.”—TJP
“Astonish me!” / S.D.
“Build something great!” /
H.Y.
“Immortal!” / D.O.
No damn
J.A.M.S.
Motto:
“What the dot-com boom made
vivid was that a significant portion
of the workforce was
disenchanted with the
conventional office landscape and
was looking for a viable alternative
to the cubicle.” —Lise Anne Couture,
designer/Metropolis/“Reimagining Work”/11.2002
“I think it’s a chicken and egg
proposition: do furniture
manufacturers make cubes
because of the demand, or is the
demand there because it’s
artificially created by the absence
of any real alternatives?” —Lise Anne
Couture, designer/Metropolis/“Reimagining
Work”/11.2002
Why Not?
“My ideal office wouldn’t
have a chair. You would do
two things there: stand up
or lie down. These are the
body’s most natural
positions.” —Niels Diffrient, designer and
F500 consultant/Metropolis/“Reimagining
Work”/11.2002
Legacy!
TP: “Your ‘signature’ is not
‘I work for Dow.’ It’s, ‘’I
accomplished [INCREDIBLY
COOL PROJECT] while I
was associated with Dow.’”*
*Terms: Signature. Portfolio. Projects. Braggables.
Herman Edwards: “I picked up one of
those Jets books and I told them, ‘What
you do as a football team is your legacy.
When you’re 80 years old, what you’ve
done will be in this book and no one can
take that away from you. Your grandkids,
your kids after that, they will know what
you did. It’s about leaving your name in
stone.”
Source: The New York Times (12.31.02)
COL Richard Hallock (to incoming SECDEF James
Schlesinger): “You must understand that if you want
to leave a legacy it is vital for you to make a quick
decision about what you want the legacy to be …
because after several months you become so caught
up in the business of the Pentagon, so overwhelmed,
that it will be too late. Pick a few projects and put
the full weight of the office behind them. Guide the
projects. Nurture them. Know from the very
beginning that this will be your legacy. Force them
through the bureaucracy.”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
14. WOW
Projects for the
“Powerless”: A
Surefire Recipe.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
Model F4
Find a Fellow
Freak Faraway
F2F!/K2K!/
[email protected]/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
And …
K2KK*
S2SS**
*Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
“Find something small
that you can turn
around. If you’re on a 9game losing streak, you
need to start with one
great inning.”—Rudy
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2002
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
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.
Michelangelo
“Nobody gives you
power. You just
take it.”—Roseanne
Kurt Carlson to
young Marilyn
Carlson: “If you don’t
like Sunday School,
change it!” (She did.)
“ ‘Obeying the rules’ is
obeying their rules.
[Women] can never be
powerful as long as they try
to be in charge in the same
way men take charge.”
Harriet Rubin,
The Princessa: Machiavelli for Women
“Don’t just express yourself.
Invent yourself. And don’t
restrict yourself to off-the-shelf
models.”—Henry Louis Gates, Jr.,
commencement address, Hamilton College
Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of
command”
“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
“To Be
somebody or to
Do something”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
Epitaphs
from
Hell
Joe J. Jones
1942 – 2002
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
LET HIM!
Joe J. Jones
1942 – 2002
HE MADE BUDGET!
(AGAIN & AGAIN.)
Joe J. Jones
1942 – 2002
HIS NET WORTH WAS
$11,000,000.
Joe J. Jones
1942 – 2002
HE HIT QUARTERLY
EARNINGS TARGETS 44
TIMES IN A ROW.
WHO WILL GO TO
STOCKHOLM? (Damn it.)
“Very simple. I
never edited
books I didn’t
love.” — J.O., on her consistent
success as an editor
If you are not
prepared to be
fired over your
beliefs … you are
working on the
wrong project - TP
“If your boss demands
loyalty, give him integrity.
But if he demands
integrity, give him
loyalty.”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
IMPLEMENTATION
SECRETS. Credibility. Demos
& End Runs & Being There. Mr.
OSHA Maine. Find three COs. Seek
determined alumnae. Go to
Bangkok. (Forget: “How do I
erase the old?” Supplant rather
than change the regnant
heirarchs.)
It’s politics,
stupid!
(Play or sit on the sidelines.)
“White-wagon kill”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
15. Bringing WOW
Work to Fruition:
The Sales
25.
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.
3. Know the customer. (Including the customer’s
consultants.) (And especially the “corporate culture.”)
4. Love internal politics at home and abroad.
5. Religiously respect competitors. (No badmouthing, no
matter how provoked.)
6. Wire the customer’s org. (Relationships at all levels &
functions.)
7. Wire the home team’s org. and vendors’ orgs.
(INVEST Big Time time in relationships at all levels & functions.)
(Take junior people in all functions to client meetings.)
It’s politics,
stupid!
(Play or sit on the sidelines.)
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.)
9. Sell only by solving problems-creating profitable
opportunities. (“Our product solves these problems, creates
these unimagined INCREDIBLE opportunities, and will make you
a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT
SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF
5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE
TRADE PRESS?)
10. Will involve anybody—including mortal enemies—if
it enhances the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.
11. Know the Brand Story cold; live the Brand Story. (If
not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible
for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s
organization & build up their Rolodex.
15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort
that’s sometimes better than a lousy win.)
17. Think those who regularly say “It’s all a price issue”
suffer from rampant immaturity & shrunken imagination.
18. Will not give away the store to get a foot in the door.
19. Are wary & respectful of upstarts—the real enemy.
20. Seek several “cool customers”—who’ll drag you into
Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even
though it is way overused. (“Partnership” includes folks at
all levels throughout the supply chain.)
22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for “little things.”) (50% of those notes are
sent to those in our company!) Remember birthdays. Use
the word “we.”
23. When you look across the table at the customer,
think religiously to yourself: “HOW CAN I MAKE THIS
DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?”
24. Great salespeople can affirmatively respond to the
query in an HP banner ad: HAVE YOU CHANGED
CIVILIZATION TODAY?
25. Keep your bloody PowerPoint slides simple!
16. Boss Work:
Demos, Heroes,
Stories … Or: Starting
a WOW Projects
Epidemic.
“Ordering”
Systemic Change
is a Stupid Waste
of Time!
Premise:
Demos!
Heroes!
Stories!
“Lead
Frogs”
Leapfrog Group:
Demo = Story
“A key – perhaps the key –
to leadership is the
effective communication
of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
MB
A!*
*Managing By Story-ing Around/David Armstrong
Culture of Prototyping
“Effective prototyping may be
the most valuable
core competence an
innovative organization can
hope to have.”
Michael Schrage
Think about It!?
Innovation = Reaction to
the Prototype
Michael Schrage
He who has the
quickest O.O.D.A.
Loops* wins!
*Observe. Orient. Decide. Act. /
Col. John Boyd
“Success is the ability
to go from failure to
failure without losing
your enthusiasm.”
Winston Churchill
(as quoted by John Peterman)
“Some people look for
things that went wrong and
I look for
things that went right
and try to build on
them.”
try to fix them.
—Bob Stone/ Mr.Rego/ Lessons from an
Uncivil Servant
“Find something small
that you can turn
around. If you’re on a 9game losing streak, you
need to start with one
great inning.”—Rudy
REAL Org Change: Demos & Models (“Model
Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned
to reinvent gov’t”)/ Stories & Storytellers (Props!)/
Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/
Cheerleaders & Recognition (Pos>>Neg, Volume)/
New Language (Hot/Emotional/WOW)/ Seekers
(networking mania)/ Protectors/ Support Groups/
End Runs—“Pull Strategy” (weird alliances, weird
customers, weird suppliers, weird alumnae-JKC)/ Field
“Real People” Focus (3 COs) (long way away)/
Speed (O.O.D.A. Loops—act before the “bad guys” can react)
C.f., Bob Stone, Lessons from an Uncivil Servant
VI. NEW
BUSINESS. NEW
YOU.
17. 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
“What strategic motto will dominate this
transition from nation-state to marketstate? If the slogan that animated the
liberal, parliamentary nation-states was
‘make the world safe for democracy,’ what
will the forthcoming motto be? Perhaps
‘making the world available,’ which is to
say creating new worlds of choice and
protecting the autonomy of persons to
choose.” —Philip Bobbitt, The Shield of Achilles:
War, Peace, and the Course of History
“better material
welfare” vs. “maximize
the opportunity of its
people”
—Philip Bobbitt, The Shield of Achilles:
War, Peace, and the Course of History
“In a global economy, the
government cannot give
anybody a guaranteed success
story, but you can give people
the tools to make the most of
their own lives” —WJC, from Philip Bobbitt, The
Shield of Achilles: War, Peace, and the Course of History
New World of Work
< 1 in 10 F500
#1: Manpower Inc.
Freelancers/I.C.: 16M-25M
Temps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27M
Total: 31M-55M
Source: Daniel Pink, Free Agent Nation
Minimum New Work SurvivalSkillsKit2002
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Sam’s
Secret #1!
Minimum New Work SurvivalSkillsKit2001
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
“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)
3 Weeks in May
“Training” & Prep: 187
“Work”: 41
(“Other”: 17)
1%
vs.
367%
Divas do it. Violinists do it.
Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it.
Surgeons do it. Cops do it.
Astronauts do it. Why don’t
businesspeople do it?
Edward Jones’ Training Machine*
146 hours/employee/year
New hires: 4X avg.
3.8% of payroll
* #1, “The 100 Best Companies To Work
For”/Fortune/01.2003
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
Invent. Reinvent. Repeat.
Source: HP banner ad
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
PRECEDENT!
“No prudent man dared to be too
certain of exactly who he was.
Everyone had to be prepared to
become someone else. To be
ready for such perilous
transmigrations was to become
an American.”—Daniel Boorstin
Personal “Brand Equity” Evaluation
– I am known for [2 to 3 things]; next year at this time I’ll
also be known for [1 more thing].
– My current Project is challenging me …
– New things I’ve learned in the last 90 days include …
– My public “recognition program”
consists of …
– Additions to my Rolodex in the last 90 days include …
–My resume is discernibly different
from last year’s at this time …
T.T.D./Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
They “Get it”?!
– stone mason
– electrician
– plumber
– tiler
– cabinet maker
– contractor
– blacksmith
– well driller
– blaster
– sheep shearer
– etc.
“When was the last
time you asked,
‘What do I want to
be?’ ”
Sara Ann Friedman,
Work Matters
“The time seems
appropriate to rethink the
notions of self and
identity in this rapidly
changing age …”
Tara Lemmey, Project LENS, past president
Electronic Frontier Foundation
“I am an American, Chicago
born, and go at things as I have
taught myself, free-style, and
will make the record in my own
way.”
Saul Bellow,
The Adventures of Augie March
“I don’t think
there’s anything
worse than being
ordinary.”
American Beauty
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
Thriving in 24/7 (Sally Helgesen)
START AT THE CORE. Nimbleness only possible if we
“locate our inner voice,” take regular inventory of
where we are.
LEARN TO ZIGZAG. Think “gigs.” Think lifelong
learning. Forget “old loyalty.” Work on optimism.
CREATE OUR OWN WORK. Articulate your value.
Integrate your passions. I.D. your market. Run your
own business.
WEAVE A STRONG WEB OF INCLUSION. Build your
own support network. Master the art of “looking
people up.”
THE I work for a
company called Me
STREET JOURNAL
Adventures in Capitalism
THE rise up and flee
your cubicle STREET
JOURNAL
Adventures in Capitalism
Bill Parcells’ World/
Brand You World!
BLAME NOBODY!
EXPECT NOTHING!
DO SOMETHING!
NY Post (9/99)
SARA HOROWITZ, Founder,
Working Today & Portable Benefits
Network
Source: Esquire/12.2002
18. Boss Job One:
The Talent
Obsession.
Brand =
Talent.*
*Duh.
Talent!
Tina Brown: “The
first thing
to do is to hire enough
talent that a critical mass
of excitement starts to
grow.”
Source: Business2.0/12.2002-01.2003
The Talent Ten
1. 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
Visibly energetic/ Passionate/ Enthusiastic … about
everything.
Engaging/ Inspires others. (Inspires the
interviewer!)
Loves messes & pressure.
Impatient/ Action fanatic.
A finisher.
Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about
her work.)
Smart.
Curious/ Eclectic interests/ A little (or more) weird.
Well-developed sense of humor/ Fun to be around.
******
No. 1 re bosses: Exceptional talent selection & development
record. (Former co-workers: “Did you visibly grow while
working with X?” / “How has the department/team grown
on a ‘world-class’ scale during X’s tenure?”)
2. 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
“Differentiation is all about being
extreme, rewarding the best and
weeding out the ineffective. … You
build strong teams by treating
individuals differently. Just look at
the way baseball teams pay 20game winning pitchers and 40-plus
homerun hitters.”—Jack Welch
3. Performance
Up or out!
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia-Pacific
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.
$1.00 for
“competence.”
$249.00 for
“attitude”/
“honesty.”
Bonus/TP:
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!
“Why focus on these late teens and twentysomethings? 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”
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 mixand-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
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
Duh!
“We want our associate population to mirror our
customer population at every level, from the executive
suite all the way to the retail floor. In the marketplace,
basically what I want to do is draw a concentric circle
around every one of our 2,300 stores, and I want the
assortment in that store to match the ethnicity of the
neighborhood it’s in. Some neighborhoods are all
Hispanic, so we can put in a full Hispanic format. That’s
what Super Saver is. All the signage is in both
languages. There’s a 100 percent Spanish-speaking
staff in the store.”—Larry Johnston, CEO, Albertson’s
“Expose yourself to the best
things humans have done and
then try to bring those things
into what you are doing.”
Steve Jobs, on the eclectic nature of the
teams he concocts; people of
“extraordinary tastes” with “intriguing
backgrounds”
“Capitalism and the conditions for creating wealth have
changed in ways that play to the strengths of hybrid
individuals, organizations and nations. And those that
wish to profit from changing economic conditions must
view hybridity as their first and best option. This bold
claim warrants an explanation. The ability to apply
knowledge to new situations is the most valued
currency in today’s economy. Highly creative people …
are misfits on some level. They tend to question
accepted views and consider contradictory ones. This
appreciation defines the mongrel mentality. Strangers
instinctively question things that natives take for
granted. Many things strike them as odd or stupid. …”
G. Pascal Zachary, The Global Me
7. Women
Born to Lead!
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
“Guys want to put everybody
in their hierarchical place.
Like, should I have more
respect for you, or are you
somebody that’s south
of me?”
Paul Biondi, Mercer Consultants [from It’s Not
Business, It’s Personal, Ronna Lichtenberg]
Women’s Strengths Match New Economy
Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style
[empowerment beats top-down decision making];
sustain fruitful collaborations; comfortable with
sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret
“On average, women and men
possess a number of different innate
skills. And current trends suggest
that many sectors of the twentyfirst-century economic community
are going to need the natural
talents of women.”
Helen Fisher, The First Sex: The Natural Talents of
Women and How They Are Changing the World
“American women possess leadership
abilities that are particularly effective in
today’s organizations, yet their abilities
remain undervalued and underutilized.
In the future, what will distinguish one
organization and one country from
another will be its use of human
resources. Today human resource
utilization is not only a matter of social
justice but a bottom-line issue.”
Judy Rosener, America’s Competitive Secret
“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
“Investors are looking more and more
for a relationship with their financial
advisers. They
want someone
they can trust, someone who
listens. In my experience, in general,
women may be better at these
relationship-building skills than are
men.”
Hardwick Simmons, CEO, Prudential Securities
“Thank you”
17 Men: 8
4 Women: 19
Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on
the Company’s New (All Male) Leadership Team
“In a lot of countries of the world, it
would be very difficult for a woman to
be a good CEO. … I have a
responsibility to do the best we can for
shareholders.” * **
*Source: New York Times/05.05.02
**Wouldn’t you love to watch him tell that … face-toface … to Margaret Thatcher or Carly Fiorina? (I would.)
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
Opportunity!
U.S.
M.Mgt.
41%
T.Mgt.
4%
Peak Partic. Age 45
% Coll. Stud.
52%
G.B. E.U. Ja.
29% 18% 6%
3%
2%
<1%
22
27
19
50% 48% 26%
Source: Judy Rosener, America’s Competitive Secret
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)
“Boys are trained in
a way that will make
them irrelevant.”
Phil Slater
Read This!
“Winning the Talent War
for Women: Sometimes It
Takes a Revolution”
Douglas McCracken, HBR [11-12/2000]
“Deloitte was doing a great job of hiring highperforming women; in fact, women often earned
higher performance ratings than men in their first
years with the firm. Yet the percentage of women
decreased with step up the career ladder. … Most
women weren’t leaving to raise families; they
had weighed their options in Deloitte’s maledominated culture and found them wanting.
Many, dissatisfied with a culture they perceived as
endemic to professional service firms, switched
professions.”
Douglas McCracken, “Winning the Talent War for Women” [HBR]
“The process of assigning plum
accounts was largely unexamined. …
Male partners made assumptions:
‘I wouldn’t put her on that kind of
company because it’s a tough
manufacturing environment.’ ‘That
client is difficult to deal with.’ ‘Travel
puts too much pressure on women.’ ”
Douglas McCracken, “Winning the Talent War for
Women” [HBR]
Goldsmith College research (UK): Gender
stereotypes re-enforced. Men who extoll
successes rewarded, women not. Men
who face interviewer head on upgraded;
women who look at floor or use sidelong
glances do better. Women who nod
repeatedly do better, not men. Men who
give long answers score well, women who
give short answers do well. (College grads
seeking jobs; HR interviewers—2 M, 2F.)
Source: The Observer/ London/ 01.12.2003
“Would Congress [the
Boardroom] be a different
place if half the members
were women?”
From Sex and Power, Susan Estrich
Norwegian Law: Boards must have
at least
women.
8. 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
enough
weird people in
“Are there
the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
“A great idea always
comes from one person’s
mind, someone who is, by
definition, local. If you place 10
people in Brussels to conceive
a European [ad/marketing]
campaign, you’ll get nothing.”
Source: Jean-Marie Dru, Disruption
“Deviance tells
the story of every mass
market ever created. What
Deviants, Inc.
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)
“The A students work for
the B students. The C
students run the
business. The D
students dedicate the
buildings.” —Assertion to Kinko’s founder
Paul Orfalea from his Mom (Fortune/05.13.02)
“Most good ideas are born
out of a little sketch. [They]
probably don’t occur when
everybody is sitting around
a table, but rather when
you’re having something to
eat or having a talk in a
bar.”—Adrian Caddy, Imagination
9. Opportunity
Make It an
Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
48 Players =
48 Projects =
48 different success
measures.
MantraM3
Talent = Brand
What’s your company’s …
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
“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”
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-teachersleaders) 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!
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.
ADDENDA: Tom Peters’
The
Talent50
The Talent50
1. People first!
2. Soft is Hard.
3. FUNDAMENTAL PREMISE: We are in an Age
of Talent/ Creativity/ Intellectual-capital
Added.
4. Talent “excellence” in every part of the
organization.
5. P.O.T./Pursuit Of Talent = Obsession.
6. HR sits at The Head Table.
7. HR is “cool.”
The Talent50
8. Re-name “HR.” (Talent Department, Center of Talent
Excellence)
9. There’s an HR Strategy
10. There is a FORMAL Recruitment Strategy.
11. There is a FORMAL Leadership Development
Strategy.
12. There is a “world class” Leadership Development
Center.
13. There is a FORMAL-STRATEGIC HR Review
Process.
14. The “Top100,” and every unit’s Top10, are
consciously managed.
The Talent50
15. “People/Talent Reviews” are the FIRST reviews.
16. HR Strategy = Business Strategy.
17. Make it a Cause Worth Signing Up For..
18. Set Sky High Standards.
19. Enlist everyone in
Challenge Century21.
20. Pursue the Best!
21. Up or Out.
22. Ensure that the Review Process has INTEGRITY.
23. Pay!
The Talent50
24. Training I: Train! Train! Train!
25. TII: 100% “business people.”
26. TIII: 100% Leaders.
27. TIV: Boss as Trainer-in-Chief.
28. Open Communication I: NO BARRIERS.
29. Open Communication II: Share Information.
(ALL!)
30. Respect!
31. INTEGRITY!
32. Treat the Whole Individual.
The Talent50
33. Places of “grace.”
34. MBWA: The “Rudy Rule.”
35. Thank You!
36. Promote for “people skills.”
(ALL ELSE IS SECONDARY.)
37. Honor youth.
38. Early leadership assignments.
39. Fast Tracking is the norm.
40. Create a System of Mentoring.
The Talent50
41. Diversity!
42. Diversity starts on the Board of
Directors.
43. WOMEN RULE.
44. Weird Wins.
45. We are all unique.
46. Bosses “win people over.”
47. GOAL: Adventures of Mutual
Discovery.
48. Foster Independence.
49. Enthusiasm!
The Talent50
50.
Talent =
Brand.
VII. NEW BUSINESS:
(NEW) BRAND
INSIDE RULES
2002 …
Message
BI > BO
Brand Inside Rules!
“I came to see in my time
at IBM that culture isn’t
just one aspect of the
game—it is the game” —Lou
Gerstner, Who Says Elephants Can’t Dance?
Brand Inside Rules!
“If I could have chosen not to tackle
the IBM culture head-on, I probably
wouldn’t have. My bias coming in was
toward strategy, analysis and
measurement. In comparison,
changing the attitude and behaviors of
hundreds of thousands of people is
very, very hard.” —Lou Gerstner, Who Says
Elephants Can’t Dance?
19. THINK
WEIRD … the HVA/
High Value Added
Bedrock.
The Cortez Strategy!
The
High Standard
Deviation
Enterprise.
THINK WEIRD:
Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: “Futuredefining customers may
account for only 2% to 3%
of your total, but they
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
“If you worship at the
throne of the voice of the
customer, you’ll get only
incremental advances.”
Joseph Morone, President,
Bentley College
“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 idealed and consumerinformed.”
Doug Atkin, partner, Merkley Newman Harty
“The future has
already happened. It’s
just not evenly
distributed.”
Adrian Slywotzky
“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
“I made a note. I’m going after
[PIONEER CO.], not the
two ‘establishment firms’ who
were formerly at the top of my
2001 target list. We need a jolt.
Things are going too well.”
Sales Exec, high-tech superstar
W.I.W?
20 of 26
7 of top 10*
*P&G: Declining domestic sales
in 20 of 26 categories; 7 of top 10
(The “billiondollar” problem.)
categories.
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 datadriven. ‘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
It sees
all its competitors’
accomplishments
merely as conventions
to be overturned.”
“Sony is the epitome of discontinuity.
Source: Jean-Marie Dru, Disruption
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
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
Top-performing Companies
“Extremely contentious
boards that regard
dissent as an obligation
and that treat no subject
as undiscussable”
—Jeffrey
Sonnenfeld, Yale School of Management
“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
WE BECOME
WHO WE
HANG WITH!
Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.
[Inundate yourself with weird.]
Big Idea/s
V.C.
GM
Portfolio
Roster
?????
“Come up with three
‘Crazy Ideas,’ one
of which might
work.”
Fr Timothy Radcliffe,
Master of the Dominicans,
to his friars
WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the
organizational code). (1.5) Hire people who make you
uncomfortable, even those you dislike. (2) Hire people you
(probably) don’t need. (3) Use job interviews to get ideas, not
to screen candidates. (4) Encourage people to ignore and defy
superiors and peers. (5) Find some happy people and get them
to fight. (6) Reward success and failure, punish inaction.
(7) Decide to do something that will probably fail, then convince
yourself and everyone else that success is certain. (8) Think of
some ridiculous, impractical things to do, then do them.
(9) Avoid, distract, and bore customers, critics, and anyone who
just wants to talk about money. (10) Don’t try to learn anything
from people who seem to have solved the problems you face.
(11) Forget the past, particularly your company’s success.
Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting,
Managing, and Sustaining Innovation
Advice to Corporate Leaders: “Consider the
metaphor of the windmill: You can harness raw
power but you can’t control it. … Hire artists,
clowns, or other disrupters to come in and
challenge your corporate environment. … Hire a
corporate anthropologist to analyze how tolerant
your organization is of deviants and other
innovators. … Once the anthropologist
leaves, hire a shaman to drive out the
evil spirits of conformity. …”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
“Deviance tells
the story of every mass
market ever created. What
Deviants, Inc.
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
Renewal = The Weird 10 =
The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer Customers & Alliance Partners [Measure the Portfolio’s S.D.]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects [F2F & K2K]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs &
Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/
Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Failures]
Re-enforce a “Culture of Disrespect”/Piracy
Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners
[Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects/Pioneer Partners
[F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs &
Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/
Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/PassionatePiracy
Button-down Org
•
•
•
•
•
•
•
H.S.D.E.
Acquire for market share
Suck up to biggest customers
Pursue “strategic vendors”
Bigger is better
Accept assignments as given
Hire 4.0s from “top schools”
Promote when they’ve “paid
their dues”
• Appoint a “prestigious” board
•
•
•
•
•
•
•
• Hang out with my pals
• R.A.F.
• Be “professional” at all
times/Honor thine elders
•
•
•
•
.
Acquire for innovation
Partner with cool customers
Seek out pioneering vendors
Break it up … to refresh
Reframe all tasks to innovate
Hire “intriguing,” wherever
Promote tomorrow if the work
product is weird and WOW
Appoint an interesting,
headstrong board
Take a freak to lunch today
F.F.F.
Stay loose, stay cool/The hell
with thine elders
?????: Get better
organized to do good
work
vs.
Get better disorganized
to do great work
Big Idea/s
V.C.
GM
Portfolio
Roster
20. Brand Inside
The
10 Basics
Summary:
2002 …
Message
BI > BO
The Brand Inside
10
BI1. The Execution Imperative: An “Action Culture”
BI2. Cherish Failures
BI3. Dent the Universe: WOW Projects/BHAGs
BI4. “Tell Me a Story”: Demo Mania
BI5. Cut the Crap: WebWorld = ALL
BI6. “Beautiful” Systems
BI7. The Modified Basis for Value Added: The New
“Brand Inside Warriors”
BI8. Talent Time
BI9. The “HSDE”: Weird Begets Weird
BI10. A Brand New/Brand You World
21. Tomorrow’s
Organizations …
Itinerant Potential
Machines.
New Organizational World: Shifts of Emphasis
Staffing
Organization
Workforce
Power Source
Loyalty
Career Asset
Fat
Vertical
Homogeneity
Status/Command Rights
Company
Organizational Capital
Thin
Horizontal
Diversity
Expertise/Relationships
Project
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-YETCOME. 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.”
VIII. NEW
BUSINESS. NEW
BEDROCK. (Or:
Upending The Big 3.)
22. Brand Talent+:
Addressing the
Education
Fiasco
“At the ultimate stage, competition
among nations will be competition
among educational systems, for
the most productive and richest
countries will be those with the
best education and training.”
Richard Rosecrance,
The Rise of the Virtual State
FES/NOV2001: New
Work. New Education.
The Twain Must
Meet.
TP Mood
Anger.
Despair.
Hopelessness.
Losing the War
to Bismarck
(and Rockefeller)
J. D. Rockefeller’s General Education Board
(1906):
“In our dreams people
yield themselves with
perfect docility to our
molding hands. … The task is
simple. We will organize children and teach
them in a perfect way the things their fathers
and mothers are doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
“My wife and I went to a [kindergarten] parent-teacher
conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a
grade of Unsatisfactory in art. We were shocked. How
could any child—let alone our child—receive a poor
His teacher
informed us that he had refused to
color within the lines, which was a
state requirement for
demonstrating ‘grade-level motor
skills.’ ”
grade in art at such a young age?
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En masse the children leapt from
their seats, arms waving. Every child was an artist. SECOND
GRADE: About half the kids raised their hands, shoulder high, no
higher. The hands were still. THIRD GRADE: At best, 10 kids out
of 30 would raise a hand, tentatively, self-consciously. By the
time I reached SIXTH GRADE, no more than one or two kids
raised their hands, and then ever so slightly, betraying a fear of
being identified by the group as a ‘closet artist.’ The point is:
Every school I visited was participating
in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
An Unnatural
Way to
“Learn”
Schools’ “Kafka-like rituals”: “enforce sensory
deprivation on classes of children held in
featureless rooms … sort children into rigid
categories by the use of fantastic measures such as
age-grading, or standardized test scores … train
children to drop whatever they are occupied with
and to move as a body from room to room at the
sound of a bell, buzzer, horn, or klaxon … keep
children under constant surveillance, depriving
them of private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children
numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist
that every moment of time be filled with lowlevel abstractions … forbid children their own
discoveries, pretending to possess some vital
secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
Doing Stuff
that Matters!
“During the first years of
life, youngsters all over
the world master a
breathtaking array of
competences with little
formal tutelage.”
Howard Gardner, The Unschooled Mind
“Children should be taught in
an active way by doing things
and playing games. It’s very
different to what is taught in
schools which involves sitting
back and absorbing
information.” —Edward de Bono/The
Independent/10.28.2002
The Learner’s Manifesto
The brain is always learning.
Learning does not require coercion.
Learning must be meaningful.
Learning is incidental.
Learning is collaborative.
The consequences of worthwhile learning
are obvious.
Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
“Really bright
kids who just
needed to get
excited” —teacher, Oakley
School
Tom’s Edu3M
Manifesto*
*Manifesto for Education in the 3rd Millennium
Education3M
Learning is a normal state.
Children are learnavores.
Prodigious feats of learning are common as dirt.
[Watch an H.S. QB studying game film.]
We learn at different rates.
We learn in different ways.
Boys and girls learn [very] differently.
In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.
Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes,
of which testing is but one—and abnormal, by “real
world” standards.
Education3M
We learn most/fastest/most completely when we
are passionate about what we are learning and it
matters to us. [Salience rules!]
Think EBI/LBI: Education by Interest/
Learning by Internship.
Classrooms are abnormal places.
We need changes of pace. [Japanese recesses after each
class.]
International test scores are not correlated with
hours-per-year in class.
Big classes are slightly problematic. Big schools
suck. Period.
Education3M
“All this”—the right stuff—fits the NWW/New World
of Work hand-in-glove. [NWW = Age of Creativity.]
U.S. schools circa 2001 are a vestige of the
Prussian-Fordist model, more interested in shaping
behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.
Learning is a matter of Intensity of Engagement, not
elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get
to know kids as individuals.
Scientific discovery processes and the teaching of
science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3M
Our toughest “learning achievement”—
mastering our native language—does not
require schools, or even competent parents. [It
does require a desperate need-to-know.]
Great teachers are great learners, not impartersof-knowledge.
Great teachers ask great questions—that launch
kids on lifelong quests.
The world is not about “right” & “wrong”
answers; it is about the pursuit of increasingly
sophisticated questions—just ask a ski
instructor or neurosurgeon.
Education3M
Most schools spend most of their time setting
up contexts in which kids learn not to like
particular subjects. [Evidence shows that such antilearning sticks!]
Vigorous exploration is normal … until you are
incarcerated in a school.
“Bite size” education-learning is neither
education nor learning.
Learning takes place rapidly on the cheerleading
squad, the football team, the school newspaper,
the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3M
The “school reform” “movement” is a giant step …
backwards … embracing the Prussian-Fordist
paradigm with renewed vigor—at exactly the
wrong time.
There are large numbers of superb schools, superb
principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily
supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily
attract “cool dudes & dudettes.”
Schools of “education” should by and large have
their charters revoked.
Education3M
Stability is dead; “education” must
therefore “educate” for an unknowable,
ambiguous, changing future; thence,
learning to learn & change is far more
important than mastery of a static
body of “facts.”
“Education” must “develop in youth the
capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.]
[Hint: It doesn’t.] [Hint: Understatement.]
“The boys who made the
best ‘Grotties’ usually
turned out to be nonentities
later; boys who hated
Groton did much better.”
FDR biographer John Gunther (quoted in Whoever Makes the
Most Mistakes Wins, Richard Farson & Ralph Keyes)
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
Read This!
Whoever
Makes the Most
Mistakes Wins: The
Paradox of Innovation
Richard Farson & Ralph Keyes:
Ye gads: “Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, he’s actually found
a negative correlation. ‘It seems that schoolrelated evaluations are poor predictors of
economic success,’ Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most
schools penalized risk takers. Most educational
systems reward those who play it safe. As a
result, those who do well in school find it hard to
take risks later on.”
Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
23. Revolution
Required: The
Healthcare
Mess.
“Parents, doctors, stockbrokers,
even military leaders are starting to
lose the authority they once had.
There are all these roles premised on
access to privileged information. …
What we are witnessing is a
collapse of that advantage,
prestige and authority.”
Michael Lewis, next
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“Teens and young
adults are flocking to the Web for
health-related information as much
as they are downloading music
and playing games online and
more often than shopping online,
according to a national survey
from the Kaiser Family
Foundation.”
Reuters (12.11.01):
“One in Four
Internet Users
Seek Religious
Information”—Reuters
(12.24.2001) (“God trumps money, sex.”)
Impact #1:
Healthcare
HealthCare2001
Consumerism X
Demographics X
IS/Internet X
Info Consolidators X
Genetics & Devices
= YIKES!
1. Consumerism
centric Healthcare)
(Patient-
“A seismic shift is underway in
healthcare. The Internet is
delivering vast knowledge and new
choices to consumers—raising their
expectations and, in many cases,
handing them the controls.
[Healthcare] consumers are driving
radical, fundamental change.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“Teens and young
adults are flocking to the Web for
health-related information as much
as they are downloading music
and playing games online and
more often than shopping online,
according to a national survey
from the Kaiser Family
Foundation.”
Reuters (12.11.01):
Consumer Imperatives
Choice
Control (Self-care, Self-management)
Shared Medical Decision-making
Customer Service
Information
Branding
Source: Institute for the Future
“Consumerism”: HMO backlash
(e.g., plans with more choice). Alternative
Medicine, Wellness & Prevention.
Info availability (disease, health, docs,
support groups, outcomes). Self-care
(chronic disease). High expectations
(genetics, etc.). Boomers (see below). …
“Savior for the Sick”
vs.
“Partner for Good
Health”
Source: NPR/VPR 08.15.00
“He shook me up. He put his hand
on my shoulder, and simply said,
‘Old friend, you
have got to
take charge of your
own medical care.’ ”
Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal,
following Jordan’s cancer diagnosis)
2. Demographics:
The BOOMERS
Reach 55!
Boomer World
“From jogging to plastic
surgery, from vegetarian diets
to Viagra, they are fighting to
preserve their youth and
defy the effects of gravity.”
M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in
charge!” (4) “We’ll take no
guff from anyone.” (5) “We
know the emperor has no
clothes.”
3. The IS/Web
REVOLUTION
“We’re in the Internet
age, and the average
patient can’t email
their doctor.”
Donald Berwick, Harvard Med School
“In an era when terrorists use
satellite phones and encrypted
email, US gatekeepers stand
armed against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
Boston Globe (09.30.2001)
“Once devised in Riyadh, the tasking order took hours
to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper
communications gear that would have connected the
Navy with its Air Force counterparts. … To
compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to
pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy
machines at full tilt, and distribute the documents to
the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful
computer technology and other
modern information-based
systems we could make a
revitalized, leaner military force
that is designed to outsee,
outmaneuver and outfight any
foe.” --Bill Owens, Lifting the Fog of War
“Without being disrespectful, I
consider the U.S. healthcare delivery
system the largest cottage industry in
the world. There
are virtually no
performance measurements
and no standards. Trying to
measure performance … is the next
revolution in healthcare.”
Richard Huber, former CEO, Aetna
“As unsettling as the prevalence of
inappropriate care is the enormous amount of
what can only be called ignorant care. A
surprising 85% of everyday medical
treatments have never been
scientifically validated. … For instance,
when family practitioners in Washington were
queried about treating a simple urinary tract
infection, 82 physicians came up with an
extraordinary 137 strategies.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“In health care,
geography is
destiny.”
Dartmouth Medical School 1996 report, from Demanding Medical
Excellence: Doctors and Accountability in the Information Age,
Michael Millenson
Geography Is Destiny
E.g.: Ft. Myers 4X Manhattan—back
surgery. Newark 2X New Haven—
prostatectomy. Rapid City SD 34X Elyria
OH—breast-conserving surgery. VT, ME,
IA: 3X differences in hysterectomy by age
70; 8X tonsillectomy; 4X prostatectomy
(10X Baton Rouge vs. Binghampton).
Breast cancer screening: 4X NE, FL, MI
vs. SE, SW. (Source: various)
Geography Is Destiny
“Often all one must do to acquire a disease is
to enter a country where a disease is
recognized—leaving the country will either
cure the malady or turn it into something else.
… Blood pressure considered treatably high in
the United States might be considered normal
in England; and the low blood pressure treated
with 85 drugs as well as hydrotherapy and spa
treatments in Germany would entitle its
sufferer to lower life insurance rates in the
United States.” – Lynn Payer, Medicine & Culture
“Practice variation is not caused by ‘bad’ or
‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.”
Michael Millenson, Demanding Medical Excellence
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
“Quality of care is
the problem, not
managed care.”
Institute of Medicine (from Michael
Millenson, Demanding Medical Excellence)
RAND (1998): 50%,
appropriate
preventive care. 60%,
recommended treatment, per
medical studies, for chronic
conditions. 20%, chronic
care treatment that is wrong.
30% acute care treatment
that is wrong.
“In a disturbing 1991 study, 110
nurses of varying experience levels
took a written test of their ability to
calculate medication doses. Eight out
of 10 made calculation mistakes at
least 10% of the time, while four out
of 10 made mistakes 30 % of
the time.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
The EMS Myth
“Speed has never
saved anybody’s
life. Period.”—W.H.
Leonard, Medical Transportation Insurance
Professionals
Source: USA Today (03.21.02)
1,000,000
“serious
medication errors per year” …
“illegible handwriting, misplaced
decimal points, and missed drug
interactions and allergies.”
Source: Wall Street Journal/ Institute of Medicine
Answer: (1)
Physician
order-entry system, (2)
stick to treatment
guidelines for high-risk
patients, (3) adequate ICU
staffing.
The perils/costs of folk wisdom:
Pills vs. IV/$100.
Per use.
“Patient by patient, problem by
problem—drug reactions, hospital
caused infections—Salt Lake City’s
LDS Hospital has attacked treatmentcaused injuries and deaths. One of the
secrets of LDS’s success is a custombuilt clinical computer system that
may serve as a national model for how
to save patient lives.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
The VHA gets it!
E.g.: Laptop at bedside calls
up patient e-records from one of 1,300 hospitals. Barcoded wristband confirms meds. National Center for
Patient Safety in Ann Arbor. Docs and researchers
discuss optimal treatment regimens—research center
in Durham NC. Doc measures & guidelines; e.g.,
pneumonia vaccinations from 50% to 84%. Blamefree system, modeled after airlines. “What’s needed
in the U.S. is nothing short of a medical revolution and
the VHA has gone further than most any other
organization to revamp its culture and systems.”—
Rand/Source:WSJ 12.10.2001
“Our entire facility is digital. No
paper, no film, no medical
records. Nothing. And it’s all
integrated—from the lab to Xray to records to physician
order entry.”—David Veillette, CEO, Indiana Heart
Hospital (Healthleaders/12.2002)
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from
the lab to X-ray to records to physician order entry.
Patients don’t have to wait for anything. The
information from the physician’s office is in
registration and vice versa. The referring physician is
immediately sent an email telling him his patient has
shown up. … It’s wireless in-house. We have 800
notebook computers that are wireless. Physicians can
walk around with a computer that’s pre-programmed. If
the physician wants, we’ll go out and wire their house
so they can sit on the couch and connect to the
network. They can review a chart from 100 miles
away.—David Veillette, CEO, Indiana Heart Hospital
(Healthleaders/12.2002)
“When a plane crashes,
they ask, ‘What
happened?’ In medicine
they ask: ‘Whose fault
was it?’ ”—James Bagian, M.D. &
former astronaut, now working with the VHA.
Winning By Acknowledging Failures
Wernher Von Braun, the Redstone
missile engineer who “confessed” &
the bottle of champagne. Award to the
sailor on the Carl Vinson—for
reporting the lost tool. Amy Edmonson
& the successful nursing units with the
highest reported adverse drug events.
Source: Karl Weick & Kathleen Sutcliffe, Managing the Unexpected
4. Information
Consolidators: The
Network Maestros
“America has twice
as many hospitals
and physicians as
it needs.”
Med Inc., Sandy Lutz, Woodrin Grossman
& John Bigalke
Specialty!
“Without having nearly the
infrastructure costs or the labor
costs that a larger organization
has to deal with, we can be more
profitable. We can turn patients
quicker, and we can have shorter
lengths of stay with equal to or
better outcomes.”—David Veillette, CEO, Indiana
Heart Hospital (Healthleaders/12.2002)
“The future of hospitals is
murky. A combination of
technological advances,
managed care, and changes in
Medicare reimbursement policy
means that the underlying
demand for inpatient services
will continue to fall.”
Institute for the Future
“Virtual health care webs force
providers to focus on their
areas of excellence and to
invest in areas where they can
generate a sustainable
competitive advantage.”
Healthcare.com: Rx for Reform, David
Friend, Watson Wyatt Worldwide
WebMD
& assigns)
(or heirs
5. Genetics &
Devices
“Recognizing that a
single misspelled gene
means the difference
between being poisoned
and being cured was the
first victory for the new science
of pharmacogenetics.”
Newsweek (06.25.01)
Genetic data:
2X
every 6
months.
Source: FT, 11.27.2001
“Pharmacogenomics could
fundamentally change the nature
of drug discovery and marketing,
rendering obsolete the
pharmaceutical industry’s practice of
spending vast amounts of time and
money to craft a single medicine with
mass-market appeal.”
The Industry Standard (05.28.01)
E.g., Genentech’s
Herceptin, useful in 25% of
advanced breast cancer cases.
Would probably have been
uneconomic if subjected to 9X
patients in phase III clinical trials.
Source: FT (11.27.01)
Sequenom/David Ewing Duncan/Wired11.02
“Sequenom has industrialized the SNP [single
nucleotide polymorphisms] identification
process.” “This, I’m told, is the first time a
healthy human has ever been screened for the
full gamut of genetic-disease markers.” “On the
horizon: multi-disease gene kits, available at
Wal*Mart, as easy to use as home-pregnancy
tests.” “You can’t look at humanity separate from
machines; we’re so intertwined we’re almost the
same species, and the difference is getting
smaller.”
Pharmacogenomics: End of Blockbusters
by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re
moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for
the industry. The implications for existing
business models are devastating.” Allen Roses,
SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences,
PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble
and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
“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)
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.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why
Companies That Are Built to Last Underperform the Market
Biotechs: Amgen, Genentech,
Biogen, Genzyme, Celltech,
ImClone Systems. Bioinformatics:
Accelrys, Cognia, Double Twist,
IBM Lifesciences, NetGenics, SAS
Institute.
“Imagine the day that your
surgeon performs your heart
bypass sitting at a computer
thousands of miles from the
operating table. That day may
come sooner than you think.”
Newsweek (06.25.01)
“There is no question in my
mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon
the FDA’s approval of robotic partialbypass surgery
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status:
$1.3T. 40M uninsured. 90K killed and 2M
injured p.a. in hospitals. 85% treatments
unproven. Cure depends on locale in which
treated. 50% prescriptions do not work. 2X
docs. 2X hospitals. IS primitive.
Accountability & measurement nil. And
everybody’s mad and feels powerless:
docs, patients, nurses, insurers,
employers, hospital administrators and
staff.
Message: (1) An unparalleled time
imagination
for
and bold
action. (2) A time of unprecedented
opportunities. (3) A time
of unprecedented risk.
HealthCare
21
HealthCare21: 21 Ideas for Century21
1. Hospitals kill people. (And many of those they don’t kill, they
wound.) (And they deny it.) (ERRORS RULE!) And: Hustling
ambulances kill pedestrians—and don’t save patients.
2. Doctors are spoiled brats—who don’t like measurements.
Or any form of “interference.” Docs are also cover-up artists.
The REAL Hippocratic Oath: “DON’T RAT ON A
FELLOW DOC”.
3. Most prescription drugs don’t work—for a PARTICULAR
patient. Current drugs = Blunderbusses.
4. Think … WELLNESS. Think … PREVENTION.
5. THERE IS LITTLE “SCIENCE” IN “MEDICINE.” (See state to
state variations … country to country variations … the general
lack of agreed upon treatments.)
6. You could save thousands of lives (think Schindler)—if you
just outlawed handwritten prescriptions.
7. “Detailers” will disappear … when GenX docs arrive.
HealthCare21 (Cont.)
8. IS/IT in hospitals is sub-primitive (despite enormous
expenditures).
9. Systemic IS/IT is worse—links between docs, insurers,
providers, patients.
10. ELECTRONIC MEDICAL RECORDS …TO UNIFORM
STANDARDS. (NOW.) (PLEASE.)
11. THE WEB WILL LIBERATE. (Info = Power.) (BELIEVE IT.)
12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e
CONTROL. NOW. “LEADERSHIP” OF AGING PROCESS.)
13. “Drug Discovery” processes at Big Pharma are … hopelessly
over-complicated.
(???: Bye Bye … Big Pharma.)
14. 90% of the “healthcare fix”: HARVEST THE LOW-HANGING
FRUIT. “They” are … NOT … the Enemy. “I have seen the
enemy … and it am me.” Damn it.
HealthCare21 (Cont.)
15. The number of U.S. un-insured is the nation’s #1 disgrace.
That said, insured “consumers” are spoiled brats. They/we/me
act as if healthcare were a free good … and believe that an
incipient hangnail calls for at least a CAT scan … or two.
ANSWER: MAKE US FEEL THE PAIN.
16. Genetic engineering & biotech change … EVERYTHING.
(Within 15 years.)
17. New Medical Devices change … EVERYTHING. (Within 15
years.)
18. IS/IT changes … EVERYTHING. (Within 10 years.)
19. New Docs change … EVERYTHING. (Within 10 years.)
20. New Patients change … EVERYTHING. (Within 5 years.)
*
*
HealthCare21 (Cont.)
ALL THIS =
ENORMOUS
OPPORTUNITY.
21.
The
Opportunity of Several Lifetimes. (For the Bold & Brave.)
H’Care WILL be … TOTALLY … re-invented in the next two
decades. (And, hey, it is our largest “industry.”)
24. RevGov:
Re-inventing
Government.
WE NEED …
IDEAS!
Uncertainty: We
don’t know
when things will get back
to normal.
We no longer
know what “normal”
means.
Ambiguity:
BMcC: (1) Hierarchy vs.
“Network organization.” (2)
NWO = “Doctrine as center of
gravity”/source of motivation;
distributed support & decisionmaking;largely self-organizing;
“outside the military sphere.”
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“In an era when terrorists use satellite
US
gatekeepers stand armed
against them with pencils
and paperwork, and archaic
computer systems that don’t
talk to each other.”
phones and encrypted email,
Boston Globe (09.30.2001)
From:
To:
Weapon v.
Weapon
Org structure v.
Org structure
Ideas > Leadership
NO: “Good gov’t”
YES: EFFECTIVE Gov’t
(in altered/ambiguous
times)
A Plea for
“virtual
[RESPONSIVE]
government”
WALLS
MUST
FALL!
The W.O.G. (Work-of-
Insta/
Targeted WPTs
Government):
(WOW
Project
Teams
)
(B.H.A.G.)
(with clout)
Experiments rule!
Failures
rule!
Talent
matters!
New Heroes/
Hall of Fame
IS/IT to
the Max!
Streamlined
procurement (esp.
IS/IT)
Bill Owens …
Lifting the Fog
of War
Case:
“The 1990s was a decade of multiple
revolutions—political, economic, technological—
that changed so thoroughly the way we live that
the past no longer seems a good guide to the
future (in fact the past seems precisely the
wrong guide). So it is in the world of military
affairs. The RMA is our opportunity to use the
new information technology to change the very
nature of the military—in a way that could
reinvigorate American political, diplomatic and
economic leadership in the world for decades to
come.” –Bill Owens, Lifting the Fog of War
“Our military is very good at doing things as they are
supposed to be done, but it is not always good at
changing the way things ought to be done. Highly
professional militaries can be very good at
maintaining the institution’s traditions, mores and
cultures in the face of rapid and important change. …
Equating professionalism with automatically
defending the status quo can be disastrous.
This is the mindset that drives service loyalties
toward narrow parochialism, and congeals
organizations into brittle shells. We end up
ignoring opportunities that could actually offer higher
military effectiveness.” –Bill Owens,
Lifting the Fog of War
“How dare you. If you
don’t support us, our
opponents will take
advantage and use this to
cut the force.” –CNO staffer
[Flag officer] to Bill Owens,
Fleet Commander
th
6
“Mike [Boorda’s] self-avowed priority was to
preserve and protect the size, budget and
structure of the U.S. Navy—his Navy—
irrespective of any other consideration—
because he deeply believed that the Navy was
the core of America’s military capability. My
view over the years had shifted toward the
conviction that we in the Navy need to
implement major changes in order to
become more joint—to work better and
more closely with the other services.”
–Bill Owens, Lifting the Fog of War
“Many flaws remained—flaws not from poor
performance, but from an ingrained command
hierarchy and an outmoded concept of war that
had taken root during World War II and then
during the cold war. Desert Storm was a joint
military operation in name rather than in fact. … The
battlefield was divided among service components. …
The fiefdoms existed not only because of tradition,
service rivalry and the egos of the commanders; they
were also there because of technological limitations.
We did not have the communications capability to do it
differently.” –Bill Owens, Lifting the Fog of War
“Once devised in Riyadh, the tasking order took hours
to get to the Navy’s six aircraft carriers—because the
Navy had failed years earlier to procure the proper
communications gear that would have connected the
Navy with its Air Force counterparts. … To
compensate for the lack of communications capability,
the Navy was forced to fly a daily cargo mission from
the Persian Gulf and Red Sea to Riyadh in order to
pick up a computer printout of the air mission tasking
order, then fly back to the carriers, run photocopy
machines at full tilt, and distribute the documents to
the air wing squadrons that were planning the next
strike.” –Bill Owens, Lifting the Fog of War
“By combining powerful
computer technology and other
modern information-based
systems we could make a
revitalized, leaner military force
that is designed to outsee,
outmaneuver and outfight any
foe.” --Bill Owens, Lifting the Fog of War
RMA: (1) Battlespace
awareness. (2) C4I.
(Command, control, communications, computers &
(3) Precision
force use.
intelligence.)
“[The RMA] means creating a
synergy in new weapons, sensors
and communications that is made
possible by the successful
melding of the technological
applications with an informationage military organization.” –Bill Owens,
Lifting the Fog of War
“In the second half of the twentieth century a new
society of individuals emerged—a breed of people
unlike any the world has ever seen. Educated,
informed, traveled, they work with their brains, not
their bodies. They do not assume that their lives can
be patterned after their parents’ or grandparents’.
Throughout human history, the problem of identity was
settled in one way—I am my mother’s daughter; I am
my father's son. But in a discontinuous and
irreversible break with the past, today’s individuals
seek the experiences and insights that enable them to
find the elusive pattern in the stone, the singular
pattern that is ‘me.’” —Shoshana Zuboff & James Maxmin,
The Support Economy
“If you don’t like
change, you’re going
to like irrelevance
even less.” —General Eric
Shinseki, Chief of Staff, U. S. Army
Old: Heavy. Seek direct contact.
New: Stryker brigade. Stealth.
Avoid direct contact—“choose your
moment.” “Depend heavily on
information technology, and
enhanced intelligence, surveillance
and reconnaissance capabilities.”
Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)
“Substituting information for
armor is a disconcerting notion
to a tank soldier. … Soldiers will
learn that battle field awareness
can be as comforting as armor.”
Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)
From “Tank” to Future Combat
System (e.g., “virtual tank”)
Analogous to switch from “circuit
breaker makers” to GE Industrial
Systems, or “guys in brown trucks”
to “Let Brown do it.”
Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)
VIII. NEW
BUSINESS.
NEW
MARKETS.
25. Trends I:
Women
Roar.
Women & the
Marketspace.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%
D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
Health Care … 80%
????
Riding Lawnmowers
2/3rds working women/
50+% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
1970-1998
Men’s median income: +0.6%
Women’s median income: + 63%
Source: Martha Barletta, Marketing to Women
$4.8T > Japan
9M/27.5M/$3.6T
> Germany
Business Purchasing Power
Purchasing mgrs. & agents: 51%
HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
Women-owned Bus.
U.S. employees > F500
employees worldwide
Source: Martha Barletta, Marketing to Women
2000-2010
55-64: 48%; 25-54: 2%
65+/2001: M, 14.6M;
F, 20.5M
Source: Martha Barletta, Marketing to Women
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42
M
Yeow!
1970 … 1%
2002 …
50%
OPPORTUNITY
NO.
1!*
[* No shit!]
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
Men: Individual perspective. “Core
unit is ‘me.’ ”
Pride in self-reliance.
Women: Group perspective. “Core
unit is ‘we.’ ” Pride in team
accomplishment.
Source: Martha Barletta, Marketing to Women
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!)
“Shopping: A Guy’s Nightmare or a
Girl’s Dream Come True?”
“Buy it and be gone”
vs.
“Hang out and enjoy the
experience”
Source: The Charleston [WV] Gazette/06.22.2002
Antaun Hughes, Capital High School,
“Women
enjoy going through the
actual process of
everything, while guys like
to get straight to the point.”
on M-F shopping habits:
Source: The Charleston [WV] Gazette
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
Women's View of Male
Salespeople
Technically knowledgeable;
assertive; get to the point; pushy;
condescending; insensitive to
women’s needs.
Source: Judith Tingley, How to Sell to the Opposite Sex
(Martha Barletta, Marketing to Women)
Read This: Barbara & Allan Pease’s
Why Men Don’t
Listen & Women
Can’t Read Maps
“It is obvious to a woman when
another woman is upset, while a man
generally has to physically witness
tears or a temper tantrum or be
slapped in the face before he even has
a clue that anything is going on. Like
most female mammals, women are
equipped with far more finely tuned
sensory skills than men.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Resting” State: 30%, 90%: “A
woman knows her children’s
friends, hopes, dreams, romances,
secret fears, what they are
thinking, how they are feeling. Men
are vaguely aware of some short
people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that
would allow him to zero in on targets in the
distance … whereas a woman needed eyes
to allow a wide arc of vision so that she
could monitor any predators sneaking up
on the nest. This is why modern men can
find their way effortlessly to a distant pub,
but can never find things in fridges,
cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage
contributes significantly to what is
called ‘women’s intuition’ and is one
of the reasons why a woman can read
between the lines of what people say.
Men, however, shouldn’t despair.
They are excellent at imitating
animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Senses
Vision: Men, focused; Women,
peripheral.
Hearing: Women’s discomfort
level I/2 men’s.
Smell: Women >> Men.
Touch: Most sensitive man <
Least sensitive women.
Source: Martha Barletta, Marketing to Women
Sensitivity to differences: Twice as
many card stacks.
More “contextual,” “holistic.”
“People powered”: Age 3 days, baby
girls 2X eye contact.
Source: Martha Barletta, Marketing to Women
Barbara & Allan Peace, Why Men Don’t Listen &
Women Can’t Read Maps: Women love to
talk. Men talk silently to themselves.
Women think aloud. Women talk, men
feel nagged. Women multitask. Women are
indirect. Men are direct. Women talk
emotively, men are literal. Men listen like
statues. Boys like things, girls like
people. Boys compete, girls cooperate.
Men hate to be wrong. Men hide
their emotions.
“When a woman is upset,
she talks emotionally to
her friends; but an upset
man rebuilds a motor or
fixes a leaking tap.”
Barbara & Allan Peace, Why Men Don’t Listen &
Women Can’t Read Maps
Stress* **
Men: Fight or flee
Women: Seek the company of
friends
*Source: UCLA, “Female Response to Stress: Tend and
Befriend, Not Fight or Flight”/Psychological Review
**90% of stress research: men
We Really … Don’t Get It!
Review of “Unfaithful”: “ … the
latest entry in the category of
male directors’ clueless
fantasies concerning what
women fantasize about in their
nonexistent free time.”
Source: Julie Iovine, NYT (05.19.2002)
Men & Women on Thelma & Louise.
MEN: Sundance Kid; women who
get angry, swear, go to bars, leave
their mate. WOMEN: women
controlled by the men in their lives,
who would rather be dead than
oppressed.
Source: Judy Rosener,
America’s Competitive Secret
[“The Hollywood scripts that
men write tend to be direct and
linear, while women’s
compositions have many
conflicts, many climaxes, and
many endings.”
Helen Fisher, The First Sex: The Natural
Talents of Women and How They Are
Changing the World]
“Women speak and hear a language of
connection and intimacy, and men
speak and hear a language of status
and independence. Men communicate
to obtain information, establish their
status, and show independence.
Women communicate to create
relationships, encourage interaction,
and exchange feelings.”
Judy Rosener, America’s Competitive Secret
[“I only really understand
myself, what I’m really thinking
and feeling, when I’ve talked it
over with my circle of female
friends. When days go by
without that connection, I feel
like a radio playing in an empty
room.”
Anna Quindlen]
Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that
cohere.*
TP/Furniture: “Tech Specs” vs.
“Soul.” **
*Redwood (UK)
**High Point furniture mart (04.2002)
Initiate Purchase
Men: Study “facts & features.”
Women: Ask lots of people for
input.
Source: Martha Barletta, Marketing to Women
Storytelling: Men start
with the headline.
Women start with the
context.
Source: Martha Barletta, Marketing to Women
Tomboy Tools. E.g.:
smaller, lighter in weight.
Tupperware “party” model.
“Darcy Winslow is a leading
figure in Nike Goddess, a
companywide grassroots team
whose goal is a once-and-for-all
shift in how a high-testosterone
outfit sells to, designs for, and
communicates with women.” —Fast
Company/08.2002
“Women weren’t comfortable in
our stores. So I figured out where
they would be comfortable—most
likely their own homes. The [first
Nike Goddess] store has more of a
residential feel. I wanted it to have
furniture, not fixtures. Above all, I
didn’t want it to be girlie.” —John Hoke,
designer, Nike
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
What If …
“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
Lowe’s …
Gets it.
1989:
13%/“lumber shop” … 2002: >50%
Yes!: “Crest Spinoff Targets
Women”—cover story,
Ad Age/06.03.02
Crest Rejuvenating Effects.
“Chicks in charge” team.
$50M launch. Packaging.
Taste. Features.
“Mattel Sees Untapped Market for
Blocks: Little Girls”—Headline,
WSJ/04.06.02
“Last year more than 90% of Lego sets
purchased were for boys. Mattel says
Ello—with interconnecting plastic
squares, balls, triangles, squiggles,
flowers and sticks, in pastel colors and
with rounded corners—will go beyond
Lego’s linear play patterns.”
“Women don’t buy
They
join them.”
brands.
EVEolution
Not
!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
STATEMENT OF PHILOSOPHY: I am a
businessperson. An analyst. A pragmatist. The
enormous social good of increased women’s
power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders
about my fact-based conviction that women’s
increasing power – leadership skills
and purchasing power – is the strongest and
most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo
Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
“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
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!”
Psssst! Wanna
see my “porn”
collection?
Norwegian Law: Boards must have
at least
women.
Duh!
“We want our associate population to mirror our
customer population at every level, from the executive
suite all the way to the retail floor. In the marketplace,
basically what I want to do is draw a concentric circle
around every one of our 2,300 stores, and I want the
assortment in that store to match the ethnicity of the
neighborhood it’s in. Some neighborhoods are all
Hispanic, so we can put in a full Hispanic format. That’s
what Super Saver is. All the signage is in both
languages. There’s a 100 percent Spanish-speaking
staff in the store.”—Larry Johnston, CEO, Albertson’s
Ass Of The Year2002: Maurice Greenberg, A.I.G.,
on the Company’s New (All Male) Leadership Team
“In a lot of countries of the world, it
would be very difficult for a woman to
be a good CEO. … I have a
responsibility to do the best we can for
shareholders.” * **
*Source: New York Times/05.05.02
**Wouldn’t you love to watch him tell that … face-toface … to Margaret Thatcher or Carly Fiorina? (I would.)
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
16;
(94% = 272)
“Please … just
one couch or
chair where my feet
hit the ground!”
—Owner,
5 furniture stores, UK
Stupid!
Stupid: “Amazing, now that I
think about it. A bunch of
guys --developers, architects,
contractors, engineers,
bankers--sitting around
designing shopping centers.
And the ‘end users’ will be
overwhelmingly women!”
Instructions: 1. Purchase ticket to
symphony … 7:30 p.m. show. 2.
Drink three large bottles of water
between 3 p.m. and 7 p.m.
3. X-dress. 4. Wait in queue at
Ladies at Intermission. 5. Realize
what total wretches you are.
6. Seize a microphone and
apologize publicly to every woman
in the hall.
“Customer is King”:
4,440
“Customer is Queen”:
29
Source: Steve Farber/Google search/04.2002
“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)
Purchasing Patterns
Women: Harder to convince; more
loyal once convinced.
Men: Snap decision; fickle.
Source: Martha Barletta, Marketing to Women
Investment Club Returns
Women-only clubs 1997 … 17.9%
Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
Value Line: Top State* Investment
Clubs 2000
8 … All male
19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots!
“Why all this focus on women and our lack of
investment guts? A far greater problem, it seems to
me, is trigger-happy speculation, mostly by men.
The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money
mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market.
Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide
their mistakes from their wives.”
Source: Newsweek 01.08.01
Notes to the CEO
--Women are not a “niche”; so get this out of
the “Specialty Markets” group.
--The competition is starting to catch on.
(E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube,
Charles Schwab, Citigroup, Aetna.)
--If you “dip your toes in the water,” what makes
you think you’ll get splashy results?
--Bust through the walls of the corporate silos.
--Once you get her, don’t let her slip away.
--Women ARE the long run!
Source: Martha Barletta, Marketing to Women
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
4. Women buy lotsa stuff.
5. WOMEN BUY A-L-L THE STUFF.
6. Women’s Market = Opportunity No. 1.
7. Men are (STILL) in charge.
8. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
9. Women’s Market = Opportunity No. 1.
10. NO SHIT.
26. Trends II:
Boomer
Bonanza/
Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
“The Latest Golden
–years Trend:
Going Back to
College” —Headline,
Newsweek/06.10.02
Member Growth: 1987 – 1997
18 – 34: 26%
35 – 49: 63%
50+: 118%
Source: IHRSA
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$610B healthcare spending/
74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“Advertisers pay more to reach the kid
because they think that once someone hits
middle age he’s too set in his ways to be
susceptible to advertising. … In fact this
notion of impressionable kids and
hidebound geezers is little more
than a fairy tale, a Madison Avenue
gloss on Hollywood’s cult of
youth.”—James Surowiecki (The New
Yorker/04.01.2002)
Read This!
Carol Morgan &
Doran Levy,
Marketing to the
Mindset of Boomers
and Their Elders
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“Households headed by someone
40 or older enjoy 91% ($9.7T) of
our population’s net worth. … The
mature market is the dominant
market in the U.S. economy,
making the majority of
expenditures in virtually every
category.” —Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders
“The mature market
cannot be dismissed
as entrenched in its
brand loyalties.”
—Carol Morgan &
Doran Levy, Marketing to the Mindset of Boomers and Their
Elders
“Focused on assessing the
marketplace based on lifetime
value (LTV), marketers may
dismiss the mature market as
headed to its grave. The reality is
that at 60 a person in the U.S. may
enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“While the average American age
12 or older watched at least five
movies per year in a theater, those
40 and older were the most
frequent moviegoers, viewing 12
or more a year.”—Carol Morgan & Doran Levy,
Marketing to the Mindset of Boomers and Their Elders
“Women 65 and older spent $14.7
billion on apparel in 1999, almost as
much as that spent by 25- to 34-yearolds. While spending by the older
women increased by 12% from the
previous year, that of the younger
group increased by only 0.1%. But
who in the fashion industry is
currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“Take the Road Less
Traveled”—Advertising Age
headline re Sony, upon
targeting “Zoomers,” the
neglected 34% of
its customers who are
age 50+
Stupid!
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
Women!
Boomers!
Design!
The Royal
Tenenbaums
“The New Pillow Talk:
Specialty Pillows Are Big
Sellers as Achy Boomers
Seek Sleep” WSJ (03.22.2002)
—
Nice Job Title, Frito-Lay!
Rebecca Johnson,
VP—Ethnic and
Urban Marketing
27. Trends III:
Green =
$$$$$$
“Of all the ways the company
will be judged over the next
decade, none will be
greater than our
response to the issue of
climate change.”
William Clay
FORD Jr.
“BP has not just met its target—to
reduce emissions of greenhouse
gases by 10 percent below 1990 levels
[more stringent than Kyoto]—it had
exceeded it, done so eight years ahead
of schedule and with no net economic
cost. In fact, because of energy
efficiency measures, the emissions
reductions amounted to a net gain of
$600 million.” —The New York Times
Magazine/12.08.2002
50% to 36%:
Protect Environment >
Economic Growth.
And #3: GREEN?????:
58% to 34%: Protect Plants &
Animals > Preserve Private
Property Rights.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered:
M, 35%; F, 47%
Source: www.pulse.org & USA Today
Three Most Important Upgrades
Home Purchasers Consider
Energy efficiency/83%
Kitchen cabinets/66%
Indoor air quality/50%
Source: Professional Builder
“The U.S. building and construction
industry reinvest only about 1 percent
of their revenue in R & D, compared to
10 to 20 times that for cutting edge
industries like electronics and
pharmaceuticals. No wonder their
techniques and materials are so
antediluvian.” —Paul Hawken et al., Natural
Capitalism
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
Women’s [Aging,Green] Market: Why
Tough
Encompassing
Attitude
CULTURAL!
“Of all the ways the company
will be judged over the next
decade, none will be
greater than our
response to the issue of
climate change.”
William Clay
FORD Jr.
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
28. Trends IV:
Think Global!
THE EIGHT
“RULES”
Rule #1
There’s no such
thing as “too small to
be global.”
[GET A LIFE.]
Rule #2
If “it” is [truly] good
… then it’s good
enough for …
THE WORLD.
Rule # 3
When?
Now.
Rule #4
Hang out …
vigorously!
Rule #5
Seek Talent!
Send Talent!
Message(s) ABB, Shell
ELITE Global Cadre
Genuinely Global BOARD
Rule #6
Glom onto a
[modest-sized]
partner … who
loves/ “gets” you!
Rule #7
Tailor!! [But don’t give
away the store.]
Rule #8
Phil Crosby
notwithstanding,
you’ll not [likely] “get
it right the first time”!
IX. NEW BUSINESS.
NEW LEADERSHIP.
29. The Passion
Imperative:
Leadership
The
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-teachersleaders) 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) CreatorVisionary … (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. …
5,000
miles for a 5
min. meeting!
Mark McCormack:
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
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
LEADERS SEE
CUPS AS “HALF
FULL.”
true:
“[Ronald
Reagan] radiated an
almost transcendent
happiness.”
Half-full Cups:
Lou Cannon, George (08.2000)
14. Leaders …
DELIVER!
“Leaders don’t
‘want to’ win.
Leaders ‘need
to’ win.”
#49
“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. BUT …
Leaders Are
Realists/Leaders
Win Through
LOGISTICS!
The “Gus
Imperative”!
16. Leaders
FOCUS!
“To
Don’t ”
List
17. Leaders …
Set CLEAR
DESIGN SPECS.
Danger:
S.I.O.
(Strategic
Initiative Overload)
[email protected]: (1) Neutron
JackWorld/
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!
18. 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.
19. Leaders
Trust in
TRUST!
Credibility
$1.00 for
“competence.”
$249.00 for
“attitude”/
“honesty.”
Bonus/TP:
If It Ain’t Broke
… Break It.
20. Leaders …
FORGET!/
Leaders …
DESTROY!
Cortez!
Leaders “dump
the
ones who brung
’em” —Nokia, HP, 3M,
PerkinElmer, Corning, etc.
“WCW Monday Nitro was our top rated
show by more than double anything else
[and the top rated show on basic cable],
and we dumped it! Can you name another
network that dropped its top-rated show? I
don’t know if consumers noticed, but it
said everything to our staff.”—Scot Safon,
on the successful reinvention of TNT
to embody its new vision, “TNT: We
know drama.”
21. 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)
22. Leaders …
HONOR THE
USURPERS.
Saviors-in-Waiting
Disgruntled Customers
Upstart Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision
WE
BECOME WHO
WE HANG
WITH!
Leaders know …
23. Leaders Make
[Lotsa] Mistakes
– and MAKE NO
BONES ABOUT IT!
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
“No matter. Try
again. Fail
again. Fail
better.” —Samuel Beckett
“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)
24. Leaders Make …
BIG MISTAKES!
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
Create.
25. 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.”
“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
“I never, ever thought of myself
I was
interested in creating
things I would be
proud of.” —Richard Branson
as a businessman.
26. 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
26A. Leaders … Make
Their Mark /
Leaders … Do Stuff
That Matters
“I never, ever thought of myself
I was
interested in creating
things I would be
proud of.” —Richard Branson
as a businessman.
Legacy!
Herman Edwards: “I picked up one of
those Jets books and I told them, ‘What
you do as a football team is your legacy.
When you’re 80 years old, what you’ve
done will be in this book and no one can
take that away from you. Your grandkids,
your kids after that, they will know what
you did. It’s about leaving your name in
stone.”
Source: The New York Times (12.31.02)
COL Richard Hallock (to incoming SECDEF James
Schlesinger): “You must understand that if you want
to leave a legacy it is vital for you to make a quick
decision about what you want the legacy to be …
because after several months you become so caught
up in the business of the Pentagon, so overwhelmed,
that it will be too late. Pick a few projects and put
the full weight of the office behind them. Guide the
projects. Nurture them. Know from the very
beginning that this will be your legacy. Force them
through the bureaucracy.”
BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram)
TP’s least favorite
term: “Stewardship”*
*I want to have “exploited” resources,
not “conserved” resources
CEO Assignment2002 (Bermuda):
“Please leap forward to 2007, 2012, or
2022, and write a business history of
What will have
been said about your
company during your
tenure?”
Bermuda.
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first
book?” “Close your eyes and
imagine me immediately doing
something about what you’ve
just said. What would it be?”
“Do you feel you have an
obligation to ‘Make the world a
better place’?”
Ideas > Leadership
“Today the problem is not how
to produce more to sell more.
The fundamental question is
that of the product’s right to
exist. And it is the designer’s
right and duty to question the
legitimacy of the product.”
Philippe Starck
CEO Assignment2002 (Bermuda):
“Please leap forward to 2007, 2012, or
2022, and write a business history of
What will have
been said about your
company during your
tenure?”
Bermuda.
TP’s least favorite
term: “Stewardship”*
*I want to have “exploited” resources,
not “conserved” resources
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first
book?” “Close your eyes and
imagine me immediately doing
something about what you’ve
just said. What would it be?”
“Do you feel you have an
obligation to ‘Make the world a
better place’?”
NO: “Good gov’t”
YES: EFFECTIVE Gov’t
(in altered/ambiguous
times)
“By combining powerful
computer technology and other
modern information-based
systems we could make a
revitalized, leaner military force
that is designed to outsee,
outmaneuver and outfight any
foe.” --Bill Owens, Lifting the Fog of War
27. Leaders Push Their
W-a-y Up the
Value-added/
Intellectual Capital
Chain
Organizations
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
28. Leaders
LOVE the
New Technology!
square feet
29. Needed? Type IV
Leadership:
Technology
Dreamer-True
Believer
The Golden Leadership
Quadrangle: (1) CreatorVisionary … (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!
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“Vision is a love
affair with an
idea.”
—Boyd Clarke & Ron
Crossland, The Leader’s Voice
“A winning attitude takes a lot of hard,
It begins with an
assumption that we do
have a choice, we can
make a difference among
others and within
ourselves.”—James Cramer, The Greenway
honest work.
Group & former CEO of the AIA
34. Leaders Know:
ENTHUSIASM
BEGETS
ENTHUSIASM!
BZ: “I am a …
Dispenser of
Enthusiasm!”
34A. Leaders Are
…
in a Hurry
The Urgency
Factor: LEADERS
… have a distorted
sense of time. (E.g.:
Rummy thinks he asked months ago … it was
the day before yesterday.)
35. Leaders
Focus on the
SOFT STUFF!
“Soft” Is
“Hard”
- ISOE
Message: Leadership is
all about love! [Passion,
Enthusiasms, Appetite for Life,
Engagement, Commitment, Great
Causes & Determination to Make a
Damn Difference, Shared Adventures,
Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother?
Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
“The references were there; the
But there
was no fire, no foot halfway
over the starting line eager
to sprint down the track to
success.”—James Cramer, The Greenway
portfolio was dazzling.
Group & former CEO of the AIA (on the rejection of a
“famous firm”)
The “Job” of
Leading.
36.
Leaders Know It’s
ALL SALES ALL
THE TIME.
If you don’t LOVE
SALES … find
another life. (Don’t pretend
TP:
you’re a “leader.”) (See TP’s
The Project50.)
37. Leaders
LOVE
“POLITICS.”
If you don’t LOVE
POLITICS … find
another life. (Don’t pretend
TP:
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
a kind
word and a
thoughtful
gesture.”
in existence:
Ken Langone, CEO, Invemed Associates [from Ronna
Lichtenberg, It’s Not Business, It’s Personal]
41. Leaders
Are …
Curious.
The Three Most
Important Letters …
TP/08.2001:
42. Leadership
Is a …
Performance.
“It is necessary for the
President to be the
No. 1
actor.”
nation’s
FDR
“You can’t lead a
cavalry charge if
you think you
look funny on a
horse.” —John Peers, President, Logical
Machine Corporation
“Find something small
that you can turn
around. If you’re on a 9game losing streak, you
need to start with one
great inning.”—Rudy
43.
Leaders …
Are
The Brand
The BRAND lives (OR
DIES) in the “minutiae”
of the leader’s momentto-moment actions.
44. Leaders …
GREAT
STORY!
Have a
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?”
“[Bertelsman’s Reinhard]
Mohn wasn’t a creative type.
What got him juiced was the
art of running an
organization and motivating
the people who work there.”
—Fortune/05.27.2002
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.
Upon
having the Leadership
Mantle placed upon thine
head, thou shalt never
hear the unvarnished
truth again!*
The Gospel According to TP:
(*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
???:
“Hire smart – go
bonkers – have grace –
make mistakes – love
technology – start all
over again.”
“LEADERS NEED TO
BE THE ROCK OF
GIBRALTAR ON
ROLLER BLADES”
50. Leaders Know
WHEN TO
LEAVE!
XI. NEW
BUSINESS. NEW
RULES.
30. 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. Crossfunctional 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. DeGaulle.
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.)
Have you
changed
civilization
today?
Source: HP banner ad
Thank You
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Issue Y2K The Great War for Talent!