Distinct or … Extinct Tom Peters Seminar2000 CEDIA Indianapolis 9 September 2000.

Distinct or … ExtinctTom Peters Seminar2000

CEDIAIndianapolis

9 September 2000

NAPM (April 2000): “You are the Rock Stars

of the B2B Age!”

CEDIA Members:

THIS IS YOUR MOMENT!

“Electronic Lifestyles

Industry” = THE WORLD

Summer 2000 …

KOA wires up!

N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.

Auto-dimming

Map lights

Emergency assistance

Cell phones, Voice mail, email, Internet access

Levi’s and Philips

Stephano Marzano (Philips Design), Levi Strauss, Italian

designer Massimo Ossi: jacket with cell phone and MP3 player

built into pockets!

Source: Red Herring (09.00)

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

Cisco, Dell =

Brand-owning companies

who sell Customer Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

Brand Inside

Brand Talent: The Great War for Talent

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

Obsession! Greatness!

Performance!Pay!

Women!Weird!

1. Obsession

P.O.T.* = All Consuming

*Pursuit of 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

2. Greatness

Only The Best!

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH

INITIATIVEE.g.: COO of IKEA to head

international expansion

Ed Michaels, War for Talent (05.17.00)

3. Performance

Up or out!

“We believe companies can increase their market cap 50 percent in 3 years. Steve

Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put

more talented, higher paid managers in charge. He increased

profitability from $25 million to $80 million in 2 years.”

Ed Michaels, War for Talent (05.17.00)

4. Pay

Fork Over!

“Technically savvy and innovative people have become unbelievably

expensive.”

Peter Drucker, Business 2.0/08.2000 [Drucker adds that there’s no reason for

them to be on anyone’s payroll.]

“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. Women

Born to Lead!

Women and new-economy

management …

The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

“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

“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

6. Weird

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

Mantra2000

Talent = Brand

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work II

The Commodity Trap

“The ‘surplus society’ has a surplus of similar companies, employing similar

people, with similar educational backgrounds, working in similar jobs,

coming up with similar ideas, producing similar things, with similar

prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

Brand Outside

Strategy 1:Use E-Commerce to

Re-invent Everything!

OVERVIEW

Tomorrow Today: Cisco!

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

Save $500M(service and tech support)

* = $48,000,000 … per DAY

COMMUNITY!/ COMMUNITY SERVICES!

B2C Success

“Genuine brand strength”

“Build community”Source: Geoffrey Moore

Tomorrow Today: Cisco!

87% of $20B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

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

CUSTOMER PERSPECTIVE:

D.I.Y./ CONTROL

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

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

I’net Freedom Manifesto

I AM IN CHARGE HERE! I CAN DO WHATEVER

I NEED OR WANT TO DO WHENEVER I WANT

TO DO IT!

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 Nordstrom and Jonas Ridderstrale, Funky Business

Brand Outside

Strategy 2: Fighting Back via

Systems Integration!

THE CASE

B2B

1999 – 2004: 50X

2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)

T

GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

Solectron, IBM, Nortel, Matsushita, Seagate, Etc.

E2Open.com

$700B

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

THE RESPONSE

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

“Systems Integrators” Unite [And Conquer]

Cisco’s winning strategy

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

Provider”

Defense-Offense: Systems Integration/HVA

Delphi, DanaUnited Technologies,

Corning, GE, Sun, Carpet One, Bud …

[Anybody in their right mind!]

E.g. …

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

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

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

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.)

Brand Outside

Strategy 3:

Design Matters!

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

Design =

“There are three basic principles behind any well-

designed product: truth, humanity, and

simplicity.”Sohrab Vossoughi,

Ziba Design

Design =

SIMPLICITY … HONESTY … ACCESSIBILITY …

ENJOYMENTJonathan Ive (iMac)

“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

Most Recent Entry/06.22.00

The “manual …

HP LaserJet 1100

Brand Outside

Strategy 4:

It’s the Experience!

“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 [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

“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

T.T.D.

WHAT’S THE [your] PLOT?

Notes Page

• WHAT IS YOUR STORY? [Be specific!] Message: This applies to every [Finance] project!

“This is the end of the pure product era. For instance, car

makers are beginning to understand that the car is a

platform for delivering services that drive the customer

experience.”Carly Fiorina, HP @ Comdex ’99

“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct.

Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a

rolling wireless portal on wheels, connecting you to your kitchen, your bank,

your kids, your office.”

Business 2.0, “Four Wheel Drive,” 08.22.00

??????????

THE HOME IS A [mere] PLATFORM FOR THE

SERVICES YOU SELL!*

*You are “the dog,” not the tail!

T.T.D.

Carefully examine/think through every aspect of “the experience of us.”*

*This holds for the Finance Dept. as well as the corporation’s “products”

Notes Page

• This demands a lot of care! THINK OF YOURSELF AS A DRAMATIST, A DIRECTOR. THINK ABOUT “THE WAY WE COME ACROSS.” Be … ridiculously … specific! [God is in the Details.]

ExperiencingOxymoron: Respect from an

Airline!

I can cope with delays. I cannot cope with lies … especially Sins

of Omission.

IT IS DISRESPECTFUL TO ME AS A HUMAN BEING!

5:47 “Amber light, back to you in a coupla minutes”

6:00 NO WORD YET6:08 “Be about ten minutes …

I know it’s hot in here …

it’s not our fault”GAP = 21 MINUTES

[All’s NOT well that “ends well”][21 minute “gap” SUCKS]

“Born without a brain” Award!

“Firestone Chief: I’m Sorry. He says that motorists are

partly to blame for the problems, though.”

Headline, front section, Des Moines Register, 09.07.2000

Brand Outside

Strategy 5:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

$4.8T > Japan

9/27.5/3.6T > Germany

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

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.”

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Marketing to Women: Help Them Save Time!

80% … work86% … cook

58% … run errands with kids38% … take child to school

21% … go to the gym21% … take outside classes

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

Q: Why do guys like pagers?

A1: Sense of importance [Pager Dude]

A2: Cubicle Slaves’ replacement for “real guys” tool belts

Q: Why do women like pagers?

A: Get the news A.S.A.P. if her child is in the Nurse’s Office

Q: Why do women hate pagers?

A: They find nothing romantic about wearing a Stetson wrench or Stanley hammer attached to their waist! [Note

the pager’s clip-on device … guys ]

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

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 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

[ It’s Simple …

Women are more thoughtful and more deliberate

than men!]

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!”

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. [PLEASE: THINK ABOUT IT!]

Brand Outside

Strategy 6:

BRAND POWER!

Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take

up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

Who is going to be the Home Depot

/PricewaterhouseCoopers of the

Electronic Lifestyles Industry?

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Leadership

Passion Rules!

Brand Leadership!

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

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

Message

Your Moment! [if you “get it”]

Simplicity! [the box is not the thing]

Experience! [the box is not the thing]

Women! [the box is not the thing]