Distinct or … Extinct Tom Peters Seminar2000 WMA/ZILLIONAIRE.COM/ DOTPLANET.COM Las Vegas 07.09.00

Distinct or … ExtinctTom Peters Seminar2000

WMA/ZILLIONAIRE.COM/DOTPLANET.COM

Las Vegas 07.09.00

Defeated Before The Starter’s Gun!

“Track 4: Managing Organization Change (Helping

Tired and Overworked Professionals with Today’s

Workplace Realities)”

NAPM: “You are the

Rock Stars of the

B2B Age!”

Message2000

“The point is the passion!”

Charles Handy

Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

Forces @ Work

The Destruction Imperative!

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

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)

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

The [New] Ge Way

DYB.com

“Change the rules before

somebody else does.”

Ralph Seferian, VP, Oracle

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

108 X 5vs.

8 X 1*

* 540 vs. 8

And Now the Equivalent …

White Collar Revolution!

The Pincer 5

“Destructive” entrepreneurs/ Global Competition

“White Collar Robots”

THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing [E.g.: India, Mexico]

Speed!!

RR on “Assetless” [J.B.] 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.”

Cisco, Dell =

Brand-owning companies who sell Customer

Satisfaction

Source: David Schneider & Grady Means, MetaCapitalism

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon/WebMD

* ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael

Lewis, The New New Thing

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

Brand Inside

Brand Work!

New OrleansApril 2000:

Jazz Festival + NAPM

You are the Rock Stars

of the B2B Age!

Message: You are Re-invention Evangelists!

ChicagoNovember 1999:

SHRM

“support function” / “cost center” / “bureaucratic

drag”

or …

“Rock Stars of the ‘Age of Talent’ ”

The Nub …

The WOW Project!*

*The Project50

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”

CEO, F100 financial services company (10-98)

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

“Death is only one of many ways to lose your life.”

Alvah Simon, North to the Night

G: How’d that herringbone pattern for the hearth come out?

T: Great! But the tile guy’d like to get his hands on you; it was a royal pain.G: But it looks good, right?

T: Fabulous.G: That’s what matters. I tell my guys, “It may be a lot of work, but think about it this way:

Would you bring your kid back, 10 years from now, to see the job?”

1) Turn ignition key.2) Shift into drive.

3) Press foot firmly on the throat of mediocrity.

Source: Mercedes ad

Implementation 101

Mark McCormack: 5,000 miles for a 5

min. meeting.

ESP to TJP: DON’T FORGET YOUR

THANK YOU NOTES!

“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

“The deepest human need is

the ... NEED TO BE APPRECIATED.”

William James

Brand Inside

Brand You: Distinct …

or Extinct

“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by

independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.”

Thomas Malone and Robert Laubacher

DISTINCT … OR EXTINCT!

“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

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

“When was the last time you asked, ‘What do I want to be?’ ” Sara Ann Friedman, Work Matters

“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

America[ns] The …

Beautiful Re-inventors

Ben F.Ralph W.E.

Dale C.N.V.P.

Werner E.Tony R.

Stephen C.

Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

When you love what you do, you’re alive.

jobs.com

Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

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, futureWEALTH

Winner Take All!

From “1, 2 or 3” [JW] to … “Best talent in each

industry segment to build best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

“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

Alan Kay on PARC’s Bob Taylor

“He was a connoisseur of

talent.”

Dudes With ’Tude“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

Talent = Brand

Forces @ Work II

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

What’s Special?

“Customers will try ‘low cost providers’ because the Majors have not given them any clear

reason not to.”

Leading Insurance Industry

Analyst (10-98)

“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

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

“When we did it ‘right’ it was still pretty

ordinary.”

Barry Gibbons on

“Nightmare No. 1”

Brand Outside

Strategy 1:

Lead the Customer!

“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 idea-led and consumer-

informed.”Doug Atkin, partner,Merkley Newman Harty

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

Brand Outside

Strategy 2:

Use E-Commerce

to Re-invent the Business!

?????

$35,000,000.

Dell’s Web sales … daily

2X = 100 days (Internet traffic)

2X = 9 months (network capacity)

Source: Red Herring (1-00)

Web World as of 05.00

1B pages7B hotlinks+1M per day

The New Yorker/05.29.00

Tomorrow Today: Cisco!

90% of $14.4B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

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

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.

B2B = No.1

CarStation (auto-body shops), ChemConnect (chemicals),

Collabria (commercial printing), DigitalThink (corporate training), E-Steel (steel), Medibuy (medical

supplies), Portera (knowledge workers), Etc., Etc., Etc., Etc.

And …

THE WORLD: Alibaba.com*

200,000 members in 194 countries

*China

Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

“Net Nips Real Estate Sales Fees”

Headline, p.1B, USAToday 07.05.00*

*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

Message: The “distributor” is dead. Long live the value-added, knowledge-intensive “business

partner.”

Defense-Offense: Systems Integration/HVA

Delphi, DanaUnited Technologies

CorningGE

Etc. [Anybody in their right mind!]

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

Shop in your Underwear

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

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Norwest/ Wells

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Psych 101: Strongest Force on Earth?

My need to be in perceived control of my universe!

The Supply Side …

The Age of the ChoiceboardThe War of the Choiceboards

Source: Adrian Slywotzky, HBR 1-2/2000 [<1%]

“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

“In the network economy, the Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front,

store interior, sales staff and post-sales support all rolled into one.”

Jakob Nielsen, Designing Web Usability

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

“One cannot be tentative about this. Excuses like ‘channel

conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24v months ago.”

Jack Welch [07.00/Forbes.com]

Brand Outside

Strategy 3:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

$3.3T + $1.5T = $4.8T*

* Larger than Japan!

Most Under-reported story!

9M*/28M(1 of 4)/$3.6T [> Germany]

* 400K in ’72; 132% since ’92

Sources: NFWBO, Cognetics, Business Wire (030600)

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,

finances, education.

Source: Business Week (11-99)

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

E.g.: Quicken.com: gender-neutralTheStreet.com: male-ish (“aggressive,

we-tell-you-what-to-think”)MotleyFool.com: female-ish

(“inquisitive, open, supportive”)WFN and MsMoney.com: female (e.g.:

emphasize parenting and divorce issues)

Source: Red Herring, Kathleen Morris of WFN

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

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

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!

Speaking of Enormous

[Missed] [Huge] Opportunities ...

74/55

“At each stage of their lives, the needs and desires of the baby

boomers have become the dominant concerns of American business and popular culture. If you can anticipate

the movement of the baby-boom generation’s life-span migration, you

can see the future.”Ken Dychtwald, Age Wave

Aging/“Elderly”

2X growth rate$$$$$$$$$$$$

“I’m in charge!”

Good source: Ken Dychtwald, Age Wave

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!

Reprise: Dawn of an Age of Self-Determination?

Brand You [end of corporate paternalism]

D.I.Y. [the Internet]Boomers [“I’m in charge here!”]

Health [“I’m in charge here!”]

Brand Outside

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]

“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

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

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

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)

Brand Leadership

Passion Rules!

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm”/ Ben

Zander

“I don’t care how old you are. I focus on

energy level.”David Beirne, VC/Headhunter,

on Dotcom recruiting

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

BE ASHAMED TO DIE UNTIL YOU HAVE

WON SOME VICTORY FOR HUMANITY!

Horace Mann, founder, Antioch College

“If things seem under control, you’re just

not going fast enough.”

Mario Andretti