Leadership Forum
20 June 2000
Tom Peters
Brand Everything:
Distinct or Extinct!
Brand It!
Now, More Than Ever!
“The increasing difficulty in
differentiating between products and
the speed with which competitors take
up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant,
Management [New Zealand]
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Corporate Religion is a completely new way
of thinking about companies. Today, the
product is still the main communication
highway in the company. When companies
make the shift to selling solutions, brands and
attitudes … communicating the
company’s attitudes and values
becomes the decisive parameter for
success. It demands that you find
out who you are as a company.”
Jesper Kunde, Corporate Religion
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
No Wiggle Room!
“Incrementalism is
innovation’s worst
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)
“Change the
rules before
somebody else
Ralph Seferian, VP, Oracle
The [New] Ge Way
New Game!
Reinventing The Hospitality
Starwood Goes for It!
Brand Inside
Brand Org: Lean,
Linked & Electronic
And Now the Equivalent …
White Collar
Robert Reich on Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
“We want to be the
air traffic controllers
of electrons.”
Bob Nardelli,
GE Power Systems
Good Start
Starwood Preferred Guest
Technology and Revenue
Brand Inside
Brand Talent: The
Great War for Talent
Issue Y2K
The Great War
for Talent!
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
John Chambers
“Gets it”!!
There is no “talent shortage” …
if …
you are a
*Great Place To Work
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Outside
The Commodity Trap
Quality Not Enough!
“While everything may be
better, it is also increasingly
the same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“The ‘surplus society’ has a surplus of
similar companies, employing similar
people, with similar educational
backgrounds, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“When we did it ‘right’
it was still pretty
Barry Gibbons on
“Nightmare No. 1”
The Character-less Hotel
Brand Outside
Strategy 1:
Lead the Customer!
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
Kevin Kelly, New Rules for the New Economy
“The Age of the
Never Satisfied
Regis McKenna
Singapore Air: $18.5K/seat for
entertainment systems
Peninsula NY: $17K/room on
personal technology
Westin (Heavenly Bed) vs. Ritz
Carlton (300 count Italian sheets)
vs. Four Seasons (mattress
GE’s New Six Sigma Approach
Old view: Out of service 9 days. 4
days are transport, which is client
New view: ALL 9 DAYS ARE OUR
Client’s World.
Source: Steve Kerr, VP, GE
You are responsible, in my mind,
for … THE
and I don’t discriminate among
who provides what.
Hotel in Las Vegas
START. To wit: 1 hour, 7 minutes
in an airport cab line @ 10:30 P.M.
(1:30 A.M. EDT)
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the
Dell’s Web sales
Tomorrow Today: Cisco!
90% of $14.4B
(Cisco Connection ONLINE)
Save $500M
(service and tech support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting)
Lessons from Earth’s Richest Human
Everything [In & Out] via Internet
$1B in ’99-’00
[on a cost base of $6B]
$1B in ’00-’01
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
Ray Lane, Oracle
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age
of Customer
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
There are 2 Kinds of …
*Fend off upstarts.
**Reinvent our marketspace!
Web Strategy: GE Power Systems
“Launch and Learn”
(4 sites in 30 days)
“It’s better to be first with less
than last with more. Success on
the Web isn’t just about
time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
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
Brand Outside
Strategy 3:
Women Rule!
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
1970 … 1%
2002 … 50%
NO. 1!
Read This Book …
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
The Difference Factor!
“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.”
EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their
credit card database to help commuting women
interview and make a choice of car pool
“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
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”
Brand Outside
Strategy 4:
Design Rules!
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
Norio Ogha
Design as Soul
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
meaning of design. Design
is the
fundamental soul of a
man-made creation.”
Steve Jobs
Brand Outside
Strategy 6:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater &
Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a
43-year-old accountant to dress in
black leather, ride through small
towns and have people be afraid
of him.”
Harley exec, quoted in Results-based
“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 …
Williams Sonoma = 6 [was 10]
Crate & Barrel = 8
Sharper Image = 9+
Smith & Hawken = 8+
Garnet Hill = 9
L.L. Bean = 5 [was 9+]
Land’s End = 7+
Colonial Williamsburg = ?
Hotel World
Hotel Hell
No Fresh Air!
Smoke Stink!
Polyester Blankets!
Lousy Technology!
< 24 Hour Room Service!
< 24 Hour Fitness Club!
Long check-in Line!
No Taxis!
“Hotel Feel” [No Soul!]
“It was much later that I realized Dad’s
secret. He gained respect by giving it.
He talked and listened to the fourthgrade 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
Sara Lawrence-Lightfoot, Respect
“The deepest human need is
the ... NEED
William James
Brand Outside
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
“Create a Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
Scott Bedbury/ Nike, Starbucks
“A Great Brand taps into emotions. Emotions drive
most, if not all, of our decisions. A brand reaches
out with a powerful connecting experience. It’s an
emotional connecting point that
transcends the product.
“A Great Brand is a story that’s never completely
told. A brand is a metaphorical story that
connects with something very deep - a
fundamental appreciation of mythology.
Stories create the emotional context people need
to locate themselves in a larger experience.”
Brand = Special =
Passion = Plot =
Mythology = Cause =
Connection = Caring
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
Reprise: Top Opportunities
Tech In & Out
Women (Etc.)
Brand Power
Reinvent “Hospitality
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
Brand Leadership:
“I am a dispenser of
enthusiasm”/ Ben
“If things seem under
control, you’re just
not going
fast enough.”
Mario Andretti

Issue Y2K The Great War for Talent!