Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age New York /05.06.2004.

Tom Peters’

Re-Imagine!Business Excellence in a Disruptive Age

New York /05.06.2004

Slides at …

tompeters.com

“Uncertainty is the only thing to be sure of.” —Anthony Muh,

head of investment in Asia, Citigroup Asset Management

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief of Staff,

U. S. Army

Montgomery Ward … Kmart … Sears … Macy’s … DEC … Wang

… Compaq … Chase Manhattan … American Motors … Chrysler …

U. S. Steel … Bethlehem Steel … AT&T … Soviet Union …

Wal*Mart … Dell … Microsoft … U.S.A. …

1. All Bets Are Off.

“14 MILLION service jobs are in

danger of being shipped overseas” —

The Dobbs Report/USN&WR/11.03/re new UCB

study

“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04

“One Singaporean worker costs as much as …

3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”

Source: The Straits Times/08.18.03

“Thaksinomics” (after Taksin Shinawatra, PM)/ “Bangkok

Fashion City”/ “managed asset reflation” (add to brand value of

Thai textiles by demonstrating flair and design excellence)

Source: The Straits Times/03.04.2004

“There is no job that is America’s God-given right

anymore.” —Carly Fiorina/ HP/

01.08.2004

“Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it

will bring the two centuries of global domination by Europe and,

subsequently, its giant North American offshoot to an end.”

—Financial Times (09.22.2003)

“The world has arrived at a rare strategic inflection point where

nearly half its population—living in China, India and Russia—have been

integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004

“This is a dangerous world and it is going to become more

dangerous.”

“We may not be interested in chaos but chaos is interested

in us.”

Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective

1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.

2. The Destruction Imperative.

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

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

“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

“Acquisitions are about buying market share.

Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

Market Share, Anyone?

240 industries: Market-share leader is ROA leader

29% of the time.

Source: Donald V. Potter, Wall Street Journal

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

“Beware of the tyranny of making Small Changes

to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman,

PepsiCo

2A. Yo, Jim . Or:

The Case for …

Technicolor!

I. Good to GreatII. Quiet, Humble Leaders

I. Good to GreatII. Quiet, Humble Leaders

Good to Great: Fannie Mae … Kroger … Walgreens … Philip

Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo

Great Companies … SET THE AGENDA.

(Period.)

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers

US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3M …

Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle …

Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express

… Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN …

I. Good to GreatII. Quiet, Humble Leaders

Huh?

“Humility: The Surprise Factor in Leadership … bosses with Gung-

ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/

re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)

WellingtonNelsonDisraeliChurchill

MontgomeryThatcher

“Humble” Pastels?

T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S. Grant/W.T. Sherman

TR/FDR/LBJ/RR/JFKPatton/Monty/Halsey

M.L. King/C. de Gaulle/M. Gandhi/W. ChurchillPicasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson

H. Clinton/G. Steinem/I. Gandhi/G. Meir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/

S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/

T.A. Edison Rummy/Norm/Henry/Wolfie

Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth

Dickinson/Arabella Babb Mansfield/Margaret Sanger

“You can’t behave in a calm, rational

manner. You’ve got to be out there on the lunatic fringe.”

— Jack Welch

“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

3. The “PSF Solution”:

The Professional Service Firm Model.

Sarah: “ Daddy, what do you do?”

Daddy: “I’m a ‘cost center.’ ”

Answer: PSF![Professional Service Firm]

Department Head

to …

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

4. The Heart of the Value

Added Revolution: PSFs Unbound/ The

“Solutions Imperative.”

“While everything may

be better, it is also increasingly the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“Customers will try ‘low cost

providers’ … because the Majors have not

given them any clear reason not to.”

Leading Insurance Industry Analyst

“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

“Companies have defined so much ‘best practice’

that they are now more or less identical.”

Jesper Kunde, Unique Now ... or Never

“We make over three new product announcements a

day. Can you remember

them? Our customers can’t!”Carly Fiorina

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersconsulting business!

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

price of entry.”Ann Livermore, Hewlett-Packard

Gerstner’s IBM: Systems Integrator of

choice. Global Services:

$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,

aim for 200. Drop many in-house

programs/products. (BW/12.01).

“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

“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)

Omnicom: 60% (of

$7B) from marketing services

And the Winners Are …

Televisions –12%Cable TV service +5%

Toys -10%Child care +5%

Photo equipment -7%Photographer’s fees +3%

Sports Equipment -2%Admission to sporting event +3%

New car -2%Car repair +3%

Dishes & flatware -1%Eating out +2%

Gardening supplies -0.1%Gardening services +2%

Source: WSJ/05.16.03

IBM/Q3/10.15.03/Rev: +5%

Services/Consulting: +11%Software: +5%Hardware: -5%

PCs: -2%Technology/Chips: -33%

5. A World of Scintillating

“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

The “Experience Ladder”

Experiences Services

Goods Raw Materials

“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

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride

through small towns and have people be afraid of him.”

Harley exec, quoted in Results-Based Leadership

WHAT CAN BROWN DO FOR YOU?

Bob Lutz: “I see us as being in the art business. Art,

entertainment and mobile sculpture, which,

coincidentally, also happens to provide transportation.”

Source: NYT 10.19.01

“Lexus sells its cars as containers for our

sound systems. It’s marvelous.”—Sidney Harman/

Harman International

Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of

undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” …

consumer: “They are our little mechanical buddies. They have personality. When they are

running efficiently, our lives are running efficiently. They are part of my family.” …

“machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry

room” (complements Sub-Zero refrigerator and home-theater center)

Source: New York Times Magazine/01.11.2004

1997-2001

>$600: 10% to 18%$400-$600: 49% to 32%

<$400: 41% to 50%

Source: Trading Up, Michael Silverstein & Neil Fiske

“Most executives have no idea how to add value to a market in the metaphysical

world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to

choose between.”

Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods: Male dominance

Services & Experiences: Female

dominance

6. 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

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

(Revised) Experience Ladder

Dreams Come True Awesome Experiences

SolutionsServicesGoods

Raw Materials

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as

companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major

portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional

value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

“Trustmarks come after brands; Lovemarks come after Trustmarks.

Think about how you make the most money. You make it when loyal users, heavy users, use your product all the

time. So having a long-term Love affair is better than having a trusting

relationship.” —Kevin Roberts, Saatchi & Saatchi, The Future Beyond Brands: Lovemarks

7. The [Mostly Ignored] “Soul” of “Experiences”:

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

LISTERINE’s …

PocketPaks

Westin’s …

Heavenly Bed

Design’s place in the universe.

And Tomorrow …

“Fifteen years ago companies competed on price. Now it’s

quality. Tomorrow it’s design.”

Robert Hayes

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

“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

Hypothesis: DESIGN is the principal difference between love and

hate!

THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much]

further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL

REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR

SERVICE OR EXPERIENCE. Design, as I see it, is

arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t.

Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the

front burner.

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)

8. Trends Worth Trillion$$$ I:

Women Roar.

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%D.I.Y. (major “home projects”) … 80%

Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)All consumer purchases … 83%

Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%

Health Care … 80%

2/3rds working women/50+% working wives > 50%

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

1970-1998

Men’s median income: +0.6%Women’s median income: + 63%

Source: Martha Barletta, Marketing to Women

91% women: ADVERTISERS DON’T

UNDERSTAND US. (58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (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!)

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)

“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

Editorial/Men: Tables, rankings.*

Editorial/Women: Narratives that cohere.*

*Redwood (UK)

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

“Women don’t buy

brands. They join them.”

EVEolution

2.6 vs. 21

Not!“Year of the

Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/Promoting

Structure Processes

MeasurementStrategyCulture 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?”

Psssst! Wanna see my “porn” collection?

Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How

Retailing’s Most Successful Stay that Way”

Presenting Experts: M = 16;

F = ?? (94% = 272)

0

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.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

“And even if they manage to get the age thing right, [Marti] Barletta says companies still tend to screw up in fairly predictable ways when they add women to the equation. Too often, their first impulse is to paint the

brand pink, lavishing their ads with flowers and bows, or, conversely, pandering with images of women

warriors and other cheesy clichés. In other cases they use language intended to be empathetic that come

across instead as borderline offensive. ‘One bank took out an ad saying, We recognize women’s special

needs,’ says Barletta. ‘No offense, but doesn’t that sound like the Special Olympics?’ ” —Fast Company/03.04

9. Trends Worth Trillion$$$ II: Boomer

Bonanza/ Godzilla Geezer.

Subject: Marketers & Stupidity

“It’s 18-44, stupid!”

Subject: Marketers & Stupidity

Or is it: “18-44 is stupid,

stupid!”

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

44-65: “New Consumer Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

“The New Consumer Majority is the only adult

market with realistic prospects for significant

sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert

Snyder, Ageless Marketing

“Baby-boomer Women: The Sweetest

of Sweet Spots for Marketers” —David Wolfe and Robert

Snyder, Ageless Marketing

“NOT ACTING THEIR AGE: As Baby Boomers

Zoom into Retirement, Will America Ever Be the

Same?”USN&WR Cover/06.01

“Sixty Is the New Thirty”

—Cover/AARP/11.03

50+

$7T wealth (70%)/$2T annual income50% all discretionary spending

79% own homes/40M credit card users41% 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)

“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

“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-

olds. 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

Possession Experiences /“Desires for things”/Young adulthood/to 38

Catered Experiences/ “Desires to be served by others”/Middle adulthood

Being Experiences/“Desires for trancending experiences”/Late

adulthood

Source: David Wolfe and Robert Snyder/Ageless Marketing

“ ‘Age Power’ will rule the 21st 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”

10. Boss Job One:

The Talent Obsession.

Age of AgricultureIndustrial Age

Age of Information IntensificationAge of Creation Intensification

Source: Murikami Teruyasu, Nomura Research Institute

Brand = Talent.

“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

Les Wexner: From sweaters to people!

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

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

Deviants, Inc. “Deviance tells the story of every mass

market ever created. What starts out weird and dangerous

becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way

out there.”

Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report, BusinessWeek, 11.20.00

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: Women Managers

Opportunity!

U.S. G.B. E.U. Ja.

M.Mgt. 41% 29% 18% 6%

T.Mgt. 4% 3% 2% <1%

Peak Partic. Age 45 22 27 19

% Coll. Stud. 52% 50% 48% 26%

Source: Judy Rosener, America’s Competitive Secret

“Internationally, the United States ranked sixtieth in

women’s political leadership, behind Sierra

Leone and tied with Andorra.” —Marie Wilson, Closing the Leadership Gap

“Are men obsolete?” —Headline,

USN&WR/06.03.03

Our Mission

To develop and manage talent;to apply that talent,

throughout the world, for the benefit of clients;to do so in partnership;

to do so with profit.

WPP

11. Brand Talent+: Addressing the

Education Fiasco.

“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

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ”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

15 “Leading” Biz Schools

Design/Core: 0Design/Elective: 1Creativity/Core: 0

Creativity/Elective: 4Innovation/Core: 0

Innovation/Elective: 6

Source: DMI/Summer 2002

“There is little evidence that mastery of the knowledge

acquired in business schools enhances people’s careers, or

that even attaining the MBA credential itself has much effect on graduates’ salaries or career attainment.” —Jeffrey Pfeffer (tenured professor,

Stanford GSB/2004)

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 school-

related 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

12. THINK WEIRD … the HVA/

High Value Added Bedrock.

THINK WEIRD: The High Standard

Deviation Enterprise.

Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

CUSTOMERS: “Future-defining customers may

account for only 2% to 3% of your total, but they represent a crucial

window on the future.”Adrian Slywotzky, Mercer Consultants

“If you worship at the throne of the voice of the customer, you’ll get only

incremental advances.”Joseph Morone, President,

Bentley College

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

W.I.W?

20 of 267 of top 10*

*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10

categories. (The “billion-dollar” problem.)

Source: Advertising Age 01.21.2002/BofA Securities

Account planning has become “focus group balloting.”

—Lee Clow

“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo

to create an unsustainable series of competitive advantages. This is not an age of defensive

castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable

advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the

only level of competition.”

Rich D’Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering

“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative

and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is

taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice

president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist

thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is

Marketing Not Working?”

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

“To grow, companies need to break out of a vicious

cycle of competitive benchmarking and

imitation.” —W. Chan Kim & Renee Mauborgne,

“”Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

“The short road to ruin is to emulate the

methods of your adversary.”

— Winston Churchill

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

Boards: “Extremely contentious boards that regard dissent as an

obligation and that treat no subject as undiscussable” —Jeffrey

Sonnenfeld, Yale School of Management

“The Bottleneck is at the Top of the Bottle”

“Where are you likely to find people with the least diversity of experience, the largest investment in the past, and

the greatest reverence for industry dogma?

At the top!”

— Gary Hamel, “Strategy or Revolution/ Harvard Business Review

We become who we

hang out with!

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

Kevin Roberts’ Credo

1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.10. Avoid moderation!

Big Idea/s

V.C. GM

PortfolioRoster

Innovation Index: How many of your Top 5

Strategic Initiatives score 7 or higher (out of 10) on a “Weirdness/Profundity

Scale”?

The Re-imagineer’s Credo … or, Pity the Poor Brown*

Technicolor Times demand …Technicolor Leaders and Boards who recruit …

Technicolor People who are sent on …Technicolor Quests to execute …

Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …

Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …

Technicolor Times.

*WSC

13. Leading in Totally Screwed-Up Times: The

Passion Imperative.

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.

“Ninety percent of what we call ‘management’ consists of making it

difficult for people to get things done.” – P.D.

“I don’t know.”

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or her absolute best.”

“The best thing a leader can do for a Great Group is to allow its members to

discover their greatness.”

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!)

“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

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

“I’m not comfortable unless

I’m uncomfortable.”—Jay Chiat

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

“Dream as if you’ll live

forever. Live as if you’ll die today.”

—James Dean

“the wildest chimera of a moonstruck

mind” —The Federalist on

Jefferson’s Louisiana Purchase