Tom Peters 2002 We Are In A Brawl With No Rules! MASTER/01.07.2002.

Tom Peters’ 2002

We Are In A Brawl With No

Rules!MASTER/01.07.2002

All Slides Available at …

tompeters.com

More at … tompeters.comSlides from this seminar;

Master Presentation, for in-depth; annotated Special Presentations

[Women Rule!, Design!, etc.].“Cool Friends” (referenced in seminar).

Discussions re this stuff.Calendar of events.

Note: Lavender text in this file is a link.

Confusion Reigns.

“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

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

BMcC: (1) Hierarchy vs. “Network organization.” (2)

NWO = “Doctrine as center of gravity”/source of motivation;

distributed support & decision-making;largely self-organizing; “outside the military sphere.”

Per capita scientists: 12,000-60,000 per 1,000,000 in developed world. 1 per 4,000,000

in Muslim countries. (Ratio = 144,000:1)

Source: FT 20Oct2001

From: Weapon v. Weapon

To: 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

“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)

“One of the 19 hijackers was stopped by a Maryland state

trooper before September 11 but was released because the

trooper had no way of knowing the man was on a CIA terrorist

watch list.” Source: AP (12.12.2001)

Per capita scientists: 12,000-60,000 per 1,000,000 in developed world. 1 per 4,000,000

in Muslim countries. (Ratio = 144,000:1)

Source: FT 20Oct2001

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 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

1 day 2001 = Year’s trade in 1949, year’s FEX in 1979, year’s

global calls in 1984.

Source: Charles Handy, The Elephant and the Flea

7 Rules for Leading/THRIVING in a Recession+

1. It’s ALREADY too late.2. Show up & tell the truth—CREDIBILITY rules.3. Kill with KINDNESS.4. Sharp pencils are imperative—but don’t forget that the CUSTOMER & our TALENT & RISKY INVESTMENTS are still our long-term Bread & Butter.

5. Everything’s different, everything’s the same—it’s the NEW ECONOMY, more than ever, stupid!6. “Use” the trauma to mount the bold initiatives you should have long before mounted: Flux = OPPORTUNITY.7. We’re in a War of Organizational Models—from retail to the Pentagon. IDEAS MATTER MOST.

SWA = American +

Continental + Delta + Northwest + United + USAirways.

Source: Boston Globe (12.22.2001)

The Destruction Imperative.

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

Message*: Are all CEOs bozos? Was Darwin a

genius, or what? So, Boss, whaddaya say about

“risk taking” now?*And “all that” (2 of 100; 12 of 500) was in relatively placid times.

CEOs appointed after

1985 are 3X more likely to be fired than CEOs appointed before 1985

Warren Bennis, MIT Sloan Management Review

“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

“A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in

older products. This results in a surge of productivity and performance that may take the old technology to unheard of

heights. But in most cases this is a sign of impending death.”

Jim Utterback, Mastering the Dynamics of Innovation

“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

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

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

The [New] Ge Way

DYB.com

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

“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

“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

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

“When asked to name just one big merger that had lived up to expectations, Leon

Cooperman, former cochairman of Goldman Sachs’ Investment Policy

Committee, answered: I’m sure there are success stories

out there, but at this moment I draw a blank.”

Mark Sirower, The Synergy Trap

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]

“Terror cells are superb, malevolent examples of what Information Age

organizations can be. So how do you kill them? … Soldiers used to idolize

Napoleon or Patton. Network-centric warriors admire Wal*Mart for using ‘information superiority’ to crush

rivals. … [The Navy’s John] Arquilla calls for small, fast, information-enabled units.” –America’s Secret Weapon,

Business 2.0 (DEC2001)

A White Collar Revolution.

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

The Pincer 5

1. “Destructive” entrepreneurs/ Global Competition

2. “White Collar Robots”

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

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

5. Speed!!

Automation+

75% of what we do: 40 “expert” decision rules!

IBM’s Project

eLiza!

“Unless mankind redesigns itself by changing our DNA through altering our genetic

makeup, computer-generated robots will take

over the world.” – Stephen

Hawking, in the German magazine Focus

The Pincer 5

1. “Destructive” entrepreneurs/ Global Competition

2. “White Collar Robots”

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

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

5. Speed!!

“So what does Drexel’s demise tell us about

Enron? Companies may die (or commit suicide), but ideas—if they’re any good—

survive.” James Surowiecki, The New Yorker

New Org I: IS/IT … “On the Bus” or “Off the Bus.”

Dell’s OptiPlex Facility

Big Job: 6 to 8 hours.(80,000 per day)

Parts Inventory: 100 square feet.

Cisco!

90% of $20B (=$50M/day)Annual savings in service

and support from customer self-management: $550M (P.S.: C.Sat e >> C.Sat h)

Secret Cisco: Community!

Customer Engineer Chat Rooms/Collaborative

Design ($1B “free” consulting) (45,000 customer problems a week solved via

customer collaboration)

The Real “News”: X1,000,000

TowTruckNet.com

Webcor. Construction. Web site for each project. Instant info on

status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage.

Source: Business Week (09.00)

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!

WebWorld = Everything

Web as a way to run your business’s innardsWeb 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 LifeWeb = Everything (P.D. to after-sales)

Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything

as next door neighbor

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,

bottlenecked-communication, 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

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 freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

“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)

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 (9-10.2001)

The Real “New Economy”

“Only a few times in history have interaction costs

radically changed—one was the railroads, then the telegraph

and telephone. We’re going through another one right now.”

Jeff Skilling, Enron

Read It Closely: “We don’t sell

insurance anymore. We sell speed.”

Peter Lewis, Progressive

Case: CRM

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)

No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre-

electronic age when service was more personal.”

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!!

M. Rogers: -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.)

CGE&Y (Paul Cole): “Pleasant

Transaction” vs. “Systemic Opportunity.” “Better job

of what we do today” vs. “Re-think overall

enterprise strategy.”

Message CRM: Madness = 600 CRM vendors. ???: “Do it all” or “do

something.” Past: over-invest in low-value 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.

I’net …

… allows you to dream dreams

you could never have dreamed

before!

“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

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

New Org II: “PSF” …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.

“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%++)

TP to NAPM: You are the …

Rock Stars of the

B2B Age!

“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%++)

BMW’s Designworks/USA:

>50% from outside work

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!

New Org III : PSF Unbound … the Heart

of the Value-added Revolution.

Animating Force: The Sameness Trap

Quality Not Enough!

“Quality as defined by few defects is becoming the

price of entry for automotive marketers

rather than a competitive advantage.”

J.D. Power

“While everything may

be better, it is also increasingly the same.”

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

“We make over three new product announcements a

day. Can you remember them?

Our customers can’t!”Carly Fiorina

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, 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

“Companies have defined so much

‘best practice’ that they are now more or

less identical.”Jesper Kunde, A Unique Moment

10X/10X

The Big Day!

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

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Delphi … Etc. … Etc.

“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

“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

Collections.Flexible sourcing.

Packaging.Merchandising.

Promotion.Systems & Site mgt.

Omnicom: 57%

(of $6B) from marketing services

Who was the number one employer of

architecture school grads in the U.S.

last year?

“We are a ‘real estate facilities consulting’

organization, not just an ‘interior design’ firm.”

Jean Bellas, founder, SPACE (from SMPS Marketer)

“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)

Problem: Everybody is going after the same space!

“Assetless Company”

John Bryan, CEO, on selling all Sara Lee’s manufacturing

“Don’t own nothin’ if you can

help it. If you can, rent your

shoes.”F.G.

Better Red than Dead?/Better Dead than Red?

“We will see more and more outsourcing of

discovery processes.”Craig Venter

Pfizer: 1,000 projects with academics and biotechs. Novartis:

30% of R&D is via collaborations.

Better Red than Dead?/Better Dead than Red?

“If we completely outsourced all of our genetic

analysis, we’d be held hostage by outside people.”

Brian Spear, Director of Pharmacogenomics, Abbott Labs

NC2001: Furniture company outsources all mfg. to

Asian firm. Asian firm gets financing, buys

NC company. Hmmm!!??

“The move toward outsourced manufacturing represents an obvious

opportunity for contract manufacturers [such

as Flextronics: $93M to $15B, ’93-’00], but it’s also a potential boon to product innovation. The

future of gadget-making is not about making gadgets; it’s about imagining them.

Someone else makes the imaginary real. ‘All that money that used to go to fund infrastructure is going into design and

innovation,’ says Flex CEO Michael Marks.”Wired/11.2001

Markets to networks. Hierarchies to networks. Sellers and buyers to suppliers and users.

Ownership to access. (Age of Access.) Marginalization of physical property. Weightless

economy. Protean generation. Outsourcing of everything. Franchising of everything. (Business format franchising.) (Leasing DNA.) Everything is a service/platform for services delivery. (Give away

the goods, charge for the services. VALUE = THE RELATIONSHIP. “Share of market” to “Share of

customer.”) Every business is show business.

Source: Jeremy Rifkin, The Age of Access

Bottom Line: The …

Solutions Imperative

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.

11. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.12. Project Management can come from any function.13. WE ARE ALL IN SALES. PERIOD.14. We all invest in “wiring” the customer organization.15. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)16. We use the word “PARTNER” until we all want to barf!17. We NEVER BLAME other parts of our organization for screw-ups.18. WE AIM TO REINVENT THIS INDUSTRY!19. We hate the word-idea “COMMODITY.”

20. We believe in “High tech, High touch.”21. We are DREAMERS.22. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)23. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!24. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!25. This is a hoot!

TP2002: GE Industrial Systems. Farmers. Message I: Same-same.

Way up the VA Chain. (Or else.) Transformation: Full-service/

solutions provider. Great rep …

but … NOBODY OWNS THE SPACE. Message II: All dogs

must learn … lotsa … new tricks. (Bad news: Everybody’s after the same space. Mr.

Darwin is on the prowl!)

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

Diversity Marketing … Communities of Interest … Bank

of America relationship … specialized acquisitions …

Farmers Agency Dashboard … HelpPoint … licensed financial

planners … etc. … etc.

PSF Unbound+ … 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

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): $10.001990: Party @ Chuck E. Cheese

(experience economy) $100.00

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

The “Experience Ladder”

Experiences Services

Goods Raw Materials

Ladder Position Measure

Solutions Success

Services Satisfaction

Goods Six-sigma

Sales2002.

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.)

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 E-NOTES.) (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!

Re-inventing the Individual: Ahoy

BRAND YOU.

2010 “Demographics”:

By 2010, full-time workers will be in the

minoritySource: MIT study (28August2000)

New World of Work

< 1 in 10 F500#1: Manpower Inc.

Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27MTotal: 31M-55M

Source: Daniel Pink, Free Agent Nation

“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

“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

Minimum New Work SurvivalSkillsKit2001

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

Sam’s Secret #1!

Minimum New Work SurvivalSkillsKit2001

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

Stan Davis & Christopher Meyer, futureWEALTH

“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)

E-LEARNING: 2M students in U.S. 4,000 colleges & universities offer. Target: Developing world.

E.g.: U. of Melbourne & McGill, part of U21 (with Thompson Learning), expect 100K students by 2010—mostly Asians. Army’s $500M contract with PWC (eArmyU)—includes degrees @ 24

colleges. Mixed models: Fuqua—9 to 11 weeks “in residence” over 2 years. Dentist gets law degree—25 to 30 hours per week. IBM trained 200K online in 2000—saved $350M. “Tricks”:

Small classes, required student involvement at U. of Phoenix Online (76% growth in Y2K.).

Source: Business Week (12.03.2001)

26.3

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

[very much]?

Conclusion: “We” are not

serious!

Invent. Reinvent. Repeat.

Source: HP banner ad

“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

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

Great Great Granddad: Pushes the plow.

Great Granddad: Horse now walks ahead of the plow.

Granddad: Farm Hand to Factory Factotum.

Dad: Factory Factotum to White Collar Cubicle Slave.

And You: V.A. Player (“Brand You”) … or else!

America[ns] The … Beautiful Re-inventors

Ben F.Ralph W.E.

Dale C.N.V.P.

Werner E./ESTTony R.Stephen

Brand You, Big Time!

I AM AN ARMY OF

ONE

Message: Distinct … or Extinct.

Brand You+ … a New Age of Self-determination.

(+Trends I: Health Care Center Stage.)

“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”

Is: “Age of Customer Control”

Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

Reuters (12.11.01): “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.”

“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 (Patient-

centric Healthcare)

“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”

Reuters (12.11.01): “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.”

Consumer Imperatives

ChoiceControl (Self-care, Self-management)

Shared Medical Decision-makingCustomer Service

InformationBranding

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

“Patient by patient, problem by problem—drug reactions, hospital

caused infections—Salt Lake City’s LDS Hospital has attacked treatment-

caused injuries and deaths. One of the secrets of LDS’s success is a custom-

built 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. Bar-coded 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%. Blame-free 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

“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

“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 (or heirs

& assigns)

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)

Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22)

Barrie James, Pharma Strategy Consulting: “We’re moving from a blunderbuss approach to laser-

guided 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 partial-

bypass surgery

Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 30M-70M 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, hospitals administrators and staff.

Message: (1) An unparalleled time

for imagination and bold action. (2) A time of unprecedented

opportunities. (3) A time

of unprecedented risk.

Trends II: Welcome to “Old World.”

“ ‘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

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%)

“NOT ACTING THEIR AGE: As Baby Boomers

Zoom into Retirement, Will America Ever Be the

Same?”USN&WR Cover/06.01

Member Growth: 1987 – 1997

18 – 34: 26%35 – 49: 63%

50+: 118%Source: IHRSA

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

50+

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

79% own homes/40M credit card users41% new cars/48% luxury

$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

Stupid!

No: “Target Marketing”

Yes: “Target

Innovation” & “Target Delivery Systems”

Redefining the Work

Itself I: B.H.A.G.s and WOW Projects.

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Language matters! Wow! BHAG! “Takes

your breath away!”

“Intimidate their [users] imaginations”

… “Where’s the revolution?” –J Allard,

on the Xbox

“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!)

“Learn not to be

careful.”

Photographer Diane Arbus, to her students

Re-defining the Work

Itself II: WOW Projects for the

“Powerless.”

Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

World’s Biggest Waste …

Selling “Up”

THE IDEA: Model F4

Find a Fellow

Freak Faraway

Heart of the Matter

F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.

THE NUGGET

Do Something. Do Anything.

Get Going.Now.

Opportunity ALWAYS Knocks

VFCJ* “Strategy”

*Volunteer For Crappy Jobs

Is It …

“The Oh-Hell-I-Wish-It-Were-Over Memorial Day picnic”

or

“The First Annual Seriously

Kewl Celebration of Our Incredible Staff”

Is It …

Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?

Or …

A stealth opportunity to address the War for Talent via … a thoroughgoing review

of how safety and environmental issues contribute to making this a

Great Place to Work?

Reframers’ Rules:

Rule 1: Never accept an

assignment as given! (Please.)

Rule 2: You’re never so powerful as when you are “powerless”!

Rule 3: Every “small” project contains the entire

enterprise DNA!

THE TOOL

Prototyping Mania!

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

THE Process

Building Buzz!

Boss-free “Selling” of a WOW! Idea

Get a Zany [WOW!] Idea/Shop it with a coupla good pals.

Surface [using your network] a list of [operational] folks who might be interested in playing.

Call, visit and choose a coupla prospects.Engage the prospects [they must “own” “it”].

Concoct a rough plan and a prototype schedule. Move forward [Ready. Fire! Aim.].

Keep on recruitin’.Get the Test Customer to recruit some buddies for Round #2 tests [Meanwhile Customer #1 expands

program]

Get going with Round #2 prototypesStart conscious “buzz building” [Let “the word” of

successful tests trickle out]Have the “line dudes” put on a demo for, say, a coupla

“cool” regional bossesEtc.Etc.

Have the growing Network of Converts initiate a Major Program Proposal

Etc.Etc.

BOTTOM LINE

The Enemy!

Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001

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!

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

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

Message to “scientists”: It AIN’T about the science. It’s

NEVER about the science. It’s ALWAYS

about the PASSION for the IDEA.

“In a long and honorable career, a Ph.D. scientist

in a pharmaceutical house is not likely –

statistically – to experience a success.”

Pharmaceutical Exec

“Statistically speaking,” Churchill shouldn’t have been able to fend off

Hitler. “Statistically speaking,” de Gaulle shouldn’t have been able to

revive the French. “Statistically speaking,” Jefferson & Adams &

Hamilton shouldn’t have been able to create America.

I wonder …

Will one of you be awoken

some December morning in Stockholm by candle-carrying

kids?

If you are not prepared to be fired over your

beliefs … you are working on the

wrong project.- TP

Charles Handy on the “alchemists”: “Passion was what drove these people, passion for their product or their cause. If you

care enough, you will find out what you need to know. Or you will experiment and not worry if the experiment goes wrong. Passion as the

secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. Sadly, passion is not a word often heard in the elephant organizations, nor in schools,

where it can seem disruptive.”

John Jumper and

Predator, the armed

unmanned drone.

Walsh: Height—shrimp. Arm—okay. Quickness—okay. Speed—

slow. Zeal—PLANET CLASS. “People can’t

measure your heart. They look at my size, my arm strength and

knock me for that”—Jeff Garcia.

Source: USA Today, 11.23.2001

Re-defining the Work Itself III:

Starting a Wow Projects Epidemic.

Premise: “Ordering” Systemic Change is a Stupid Waste

of Time!

Demos! Heroes! Stories!

Demos! Heroes! Stories!

L.B.I.W.D. (Leading

By Inducing Weird Demos)

Leaders aiming to change their world

… troll for & identify palpable heroes, who executed

palpable projects—then they point to these people and say to the

masses, “See, here it is, done by one of your own.” (And then they “deep-dip” a few of

those heroes to demo their seriousness.)

Trolling for radicals. ER Doc Ken Kizer (former VA Undersecretary):

Spots patient wrist band during 1998 visit to Topeka. Finds RN Sue

Kinnick. (She’d gotten the idea from Avis.) Kizer orders systemic

experiment. 170 hospitals by 09.2000. Topeka: 70% reduction in

meds errors.

Demos! Heroes! Stories!

Demo = Story

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

effective communication of a story.”

Howard Gardner, Leading Minds: An Anatomy of Leadership

MBSA!*

*Managing By Story-ing Around/David Armstrong

Boss Advice I: The “Poster Kids” Strategy

Chat up the organization. Develop a tentative list of Pioneers.

Hang with those Pioneers, discover the “stuff I’ve long wanted to do”/Encourage

them to “Do it!”Begin to showcase their developing results

[with your public stamp of approval]. Dip deep[ish] and early - promote a Pioneer into

the [New] Establishment.Incorporate the Pioneers’ work into your Vision

Chatter/Welcome ALL aboard!

Boss Advice II: The “Flypaper” Strategy

“Event Marketing”: Idea Fair/Internal “Tradeshow”/Bragfest. Or: Seminar Series, with

“strange” outsiders/insiders (not the usual suspects); intense Web-based follow-up and community creation

(Neighborhoods of Common Interest).

“Play Fund,” around a topic of importance. Small-ish grants. Easy application process. Short-ish

timeframes. (Gerstner @ American Express re AI.)

“Scholarships” (not the usual suspects). Sabbatical funds (contest?). Placement on customer or supplier

project teams (not the usual suspects).

Each VP a V.C.: Portfolio of high-risk

investments … in people/ideas … from

all across the company.

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

Freaks need mentors/

guardians!

Summary

Don’t try to “change the culture”!

Do create flypaper which attracts Mavericks & Pirates!

Let the new culture (which is already lurking around you) find you!

Publicize, at the appropriate moment, the New Hall of Fame; help the New Culture Adherents create & nurture Community!

“The” Unsung Work Tool: Design Mindfulness.

What is it?

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]

Packaging Power: From Quaker

Oats to … Listerine PocketPaks

Packaging, Power of …

1870: animal feed.

1890: “A delicacy for the epicure, a nutritious dainty for the invalid,

a delight to the children”

Source: Thomas Hine, The Total Package: The Evolution and Secret Meanings of Bottles, Boxes,

Cans and Tubes (on Quaker Oats)

“Packages are

about containing and labeling and informing and celebrating. They are

about power and flattery and trying to win people’s trust. They are about

beauty and craftsmanship and comfort. They are about color,

protection, survival.” –Thomas Hine, The Total Package

“During the 30 minutes you spend on an average trip to the supermarket, about 30,000 different

products vie to win your attention and ultimately to make you believe in their promise. When the

door opens, automatically, before you, you enter an arena where your emotions and your

appetites are in play, and a walk down the aisle is an exercise in self definition. Are you a good parent, a good provider? … do you care about the environment? Do you appreciate the finer things in life? Are you enjoying what you’ve accomplished?” –Thomas Hine, The Total Package

Bottom Line.

Design “is” … WHAT & WHY I LOVE.

LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I

GET MAD. MAD.

Wanted: THE DESIGNER OF MY

RADIO SHACK PHONE. Major

Reward!

“I’m just going to come right out and say it: Ericsson lost $2.3B on mobile phone

handsets last year because its products are ugly.”

Peter Martin (FT 04.24.01)

Design is never neutral.

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.

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

“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

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

“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

“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

Check Out the Language:

“Tomorrow it’s design …”“Design is the only thing …”

“Design is … religion ...”“Drop-dead charm …”“Object of desire …”

“Fundamental soul …”“Passionate maniacs …”

Philippe Starck

“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

“[At Thompson] I outlawed the word ‘consumer’ in all company meetings, and insisted it be

replaced by the words ‘my friend,’ ‘my wife, ‘my daughter,’ ‘my mother,’ or ‘myself.’ It doesn’t sound the same at all, if you say: ‘It doesn’t

matter, it’s shit, but the consumers will make do with it,’ or if you start over again and say, ‘It’s shit, but it doesn’t matter,

my daughter will make do with it.’ All of a sudden, you can’t get away with it anymore.

There is an enormous task to be done with this kind of symbolic repositioning.”

Philippe Starck

“Today, 80 per cent of objects are

unnecessarily macho. Yet it is plain: The intelligence of a truly

modern society must be feminine. … Apart from a machine pistol, I can’t think of many objects

which actually need to be extravagantly masculine.”

Philippe Starck

Message (?????): Men cannot design for women’s

needs.

Architect to TP: “The only house with a second-

floor laundry was designed by a

woman.”

Message: Design is the wellspring of branding. Great

design takes guts and is “soul deep.”

T.T.D./Design “Awareness”!

STEP No. 1: NOTEBOOK![Start recording the awesome

and the awful.]

Compare 10 order forms or data fields at a Web site.

Save great and awful junk mail.

Go on a <$10 shopping spree.

Pay attention to signage. (And instruction manuals.)

Start a notebook. NOW.

Design-Minded Company: CredoDesign matters! Everywhere!

The Brand Promise rules! Everywhere!All can answer: WHO ARE WE? HOW ARE

WE DISTINCT?Words such as beauty & grace & emotion

& connection & Wow & adventure are okay ’twixt 9 and 5.

Non-Wow doesn’t cut it. Anywhere!We aim to attract Best-In-Planet TALENT; non-traditional hiring, with an emphasis

on the arts, is part of this. Diversity-R-Us!

Design-Minded Company: Operating Philosophy

All work is the product of Hot Teams of peers.Hierarchy is minimal, and usually a distraction.

We understand that “disrespect” is the ultimate in respect in crazy times.The Work Matters! Wow … or bust!

All work reflects design-mindfulness & the brand promise.

Promotion comes immediately if the work is Wow.NO BULLSHIT. We keep our word to our teammates and other partners.

Integrity = No.1 outcropping of design-mindfulness.We are a business. Results matter!

Design+ = Beautiful Systems.

Fred S.’s “mediocre” thesis. Herb K.’s

napkin.

Great design = One-page

business plan (Jim Horan)

K.I.S.S.: Gordon Bell (VAX

daddy): 500/50. Chas.

Wang (CA): Behind schedule?

Cut least productive 25%.

Scaled De-Compression, Rule Of …

5 days “on the

ground” = 5 weeks (MONTHS?) in absentia

“Most companies would do more business on the Internet if they

fired their entire marketing department and replaced it with

people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

SWA

Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t

believe they’re done)

30% of revenues directly from site (vs. 6% for others)

Source: Business Week (09.00)

Read It Closely: “We don’t sell

insurance anymore. We sell speed.”

Peter Lewis, Progressive

K.I.S.S./Jack “1@T” Welch: (1)

Neutron 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!

Systems: Must have. Must

hate. / Must design. Must un-

design.

“Ninety percent of what we call ‘management’ consists of making it difficult for people to

get things done.” – P.D.

Mgt. Team

includes … EVP (S.O.U.B.)

Executive Vice President, Stomping Out Unnecessary Bullshit

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.

Systems Design Matters!

Palm Beach County’s U.C.B.* [*Utterly Confusing Ballot]

N.W.O. I: Brand = Talent

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

Yikes: “What worries me is that I can’t see why any ambitious young person would want to

join my company, or stay here for long if they did join. My most important job is to change that

as fast as I can.”—CEO, giant multinational, to Charles Handy

The Talent Ten

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

Model 24/7*: Sports Franchise GM

*25/8/53

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 (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)

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

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)

What gets measured gets done. What gets

paid for gets done more. What gets paid

a lot for gets done a lot more.

5. Youth

Grovel Before the Young!

“Why focus on these late teens and twenty-

somethings? 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]

6. Diversity

Mess Rules!

“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

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”!

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

“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

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)

Okay, you think I’ve gone tooooo far.

How about this: DO ANY OF YOU SUFFER

FROM TOO MUCH TALENT?

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. 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

Encouraging signs: CEO, HP. CEO, eBay. CEO, Avon. CEO, Mirant.

CEO, Xerox. President, Pharmaceutical Group, Pfizer.

President, Chevron Products. Co-CEO, Kraft. President, PepsiCo.

CEO, Ogilvy & Mather. COO, Enron Americas. COO, Colgate-Palmolive.

President, Southwest Airlines.

Message S. Estrich: Re-invent the Culture!

S. Estrich: The Magic Number 3! [Partners, Tenured Profs, Directors]

“Deloitte was doing a great job of hiring high-performing 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 male-dominated 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]

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

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

“I would like to think we could

attract students with green

hair. We will take pink and

blue and orange hair, too.”

Shirley Tilghman, Princeton

Would Craig Venter (Luciano Benetton)

come to work for us?

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Human

Enablement

Department

Titles!

Manager HRIS to Manager Human Capital

Assets or Manager Employee Marketing*

*IHRIM.link (2-3.2001)

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 …

EVP?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

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.

Trends III: Speaking of …

Women.

Women & the Marketspace.

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Consumer Electronics … 51%

Cars … 60% (90%)All consumer purchases … 83%

Bank Account … 89%Health Care … 80%

????

80%

Riding Lawnmowers

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

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

$4.8T > Japan

9M/27.5M/$3.6T > Germany

New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874?

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!*[* No shit!]

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.”

“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!)

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

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

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

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?”

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!”

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

Psssst! Wanna see my “porn” collection?

“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

Stupid!

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

The Furniture Industry …

doesn’t understand BRANDINGdoesn’t understand FASHIONdoesn’t understand WOMENdoesn’t understand SPEED & RESPONSIVENESS & VALUE-ADDED SERVICESdoesn’t understand EXCITING RETAIL PRESENTATION & “EXPERIENCE” MARKETING.

And is run by old, conservative white guys … who don’t even understand what they don’t understand.

Prescription …

SHE is the Consumer. (PERIOD.)

SHE is the Brand. (PERIOD.)

75% women designers* (*Men CANNOT design for women. PERIOD.)

75% women reps.“Cool” retail spaces in high-rent districts

(à la Ethan Allen).

Match furniture with accessories … i.e., create an “experience.”

FOCUS ON “RELATIONSHIPS-FOR-LIFE”, not “transactions.”

Stupid: “Amazing, now that I think about it. A bunch of

guys --developers, architects, contractors--sitting around designing

shopping centers. And the ‘end users’ will be

overwhelmingly women!”

Whose pelvis is it, anyway?

Stupid: Nike. The “pelvis pics.” Research in

h.care. Georgene Terry’s “finding.” Etc. Etc. Etc.

Etc. Etc.

Harmony. From

General Mills. Low-fat cereal fortified with calcium, folic acid

and iron. “Breakfast of Heroines”

Source: Business Week’s “The Best Products of 2001”

Brand Talent+: The Education Fiasco

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

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

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 low-

level 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

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

Tom’s Edu3M

Manifesto**Manifesto for Education in the 3rd Millennium

Education3MLearning 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 imparters-of-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 anti-learning 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.]

N.W.O. II, New Org IV

& Reprise: THINK WEIRD … the H.V.A.

Bedrock.

THINK WEIRD: The High Standard

Deviation Enterprise.

“The corporate faith in big industrial mergers [2/3rds of which

fail] is a vestige of the spats-and-spittoons era.” —James Suroweicki, The New Yorker (More, a Buffett annual-report quote: “Many managers were overexposed in

impressionable childhood years to the story in which the imprisoned handsome prince is released from a toad’s body by a kiss from the beautiful princess.”)

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

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

Elliott Masie, on desirable eLearning vendors: “I want a ‘sandbox partner,’ someone

who will openly say, ‘This is not the last word; we

don’t know exactly where we’re going.’ ”

Step 1: TAKE SOMEONE

NEW & WEIRD TO LUNCH TODAY OR

TOMORROW. [Inundate yourself with weird.]

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

The GM/VC “model” of

leadership.

Logic: Cut from 1,000 brands to 500 brands, for efficiency’s sake. Need 10% p.a. growth in reduced # of brands to get

“guaranteed” corporate growth of 5%. (AND YOU DON’T GET

“AVERAGE” GROWTH IN EVERY BRAND—DUH.) Hence, 10% across-the-board growth will mostly come from 40% growth in small # of

brands (Pareto: 80/20 rule; blah, blah, blah).

Axiom: 40% growth will only come from high-risk bets—and accompanying failures—across

the portfolio. Hence, the “VC [GM] model.”

Axiom/Statistical Truism: The more challenging the goal and the

more elusive the target … the more dependant we are on the

“outliers” … the serendipitous/“long shot” results that only emanate from a portfolio of “tries”/projects laden with risk.

ALL HAIL THE HSDE!

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

The Top Creators of Shareholder Value

Accept depressed earnings for several quarters to support hot productExpense rather than capitalize new venture costs

Bonuses without caps

Source: Fortune (09.17.201)

New Org IV+: Tomorrow’s Organizations …

Itinerant Potential Machines.

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-YET-COME. 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.”

New Org IV++:

NewGov2002.

WE NEED …

IDEAS!

“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

BMcC: (1) Hierarchy vs. “Network organization.” (2)

NWO = “Doctrine as center of gravity”/source of motivation;

distributed support & decision-making;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

From: Weapon v. Weapon

To: 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”

Agile.

WALLS MUST FALL!

The W.O.G. (Work-of-

Government): Insta- Targeted

WPTs (WOW (B.H.A.G.)

Project Teams (with

clout) )

Experiments rule!

Failures rule!

Talent matters!

IS/IT to the Max!

Streamlined

procurement (esp. IS/IT)

“THE MARINES LEARN NEW

TACTICS—FROM WAL*MART”—Business

Week (12.24.2001)

N.W.O. III: It all adds up to …

THE BRAND.

“WHO ARE YOU [these days] ?”

TP to Client

“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

“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

to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand

that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

“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!

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:

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

Message: “Branding” is B.S. long-term if the product is not

supercalifragilisticexpealidocious (e.g., see sections on Design &

Experience above)

The Heart of Branding …

“WHO ARE WE?”

WHAT’S OUR

STORY?

DO THE HOUSEKEEPERS & CLERKS “BUY

IT”? [ARE YOU V-E-R-Y SURE?]

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

“ WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DRAMATIC DIFFERENCE TO THE

CLIENT ”

Leading in Totally Screwed

Up Times.

The Context.

“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

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

BMcC: (1) Hierarchy vs. “Network organization.” (2)

NWO = “Doctrine as center of gravity”/source of motivation;

distributed support & decision-making;largely self-organizing; “outside the military sphere.”

From: Weapon v. Weapon

To: 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

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 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

1 day 2001 = Year’s trade in 1949, year’s FEX in 1979, year’s

global calls in 1984.

Source: Charles Handy, The Elephant and the Flea

The

Leadership50

The Basic Premise.

1. Leadership Is a …

Mutual Discovery Process.

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-teachers-

leaders) 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!

I am inalterably opposed to “organization change,”

“empowerment,” “motivation.” The goal: to awaken the latent talent

already within, by providing opportunities worthy of the

individual’s investment of her or his most precious resources …

time and emotional commitment.

1A. Leaders …

Cede Control.

“I don’t know.”

“The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame

where the old tools of logic may be its undoing rather than its salvation. To drop these tools is

not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the

unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the

form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in

the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick

1B. Leaders Try … Not to Screw

Things Up

“Ninety percent of what we call ‘management’

consists making it difficult for people to get

things done.” – P.D.

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!)

Whoops: Jack didn’t have a vision!

2A. “Just One”: Great Leading = Great

Mentoring.

T.A.: 3

Goal of the Year No. 1*: Find-Develop-Mentor

ONE Extraordinary Person.

*CEO, large financial advisory firm, April 2001

2B. Great Leaders are …

Great V.C.s.

“Basically [Omnicom’s John] Wren makes aggressive bets on entrepreneurs and

gives them tremendous autonomy, on the assumption that the risk-taking will pay off

in new ideas, connections, businesses, and, yes, revenues and profits. …

‘Omnicom operates like a venture-capital firm,’ says Sir Martin

Sorrell [of WPP].”

Fortune (09.17.2001)

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)

4A. All Organizations

Need the Golden Leadership

Triangle.

The Golden Leadership Triangle: (1) Creator-

Visionary … (2) Talent Fanatic-Mentor-V.C. …

(3) Inspired Profit Mechanic.

Project Team Golden Triangle

(1) Champion-Maniac. (2) Implementer-Pol. (3)

Schedule & Budgets Fanatic.

5. Leadership Mantra

#1: IT ALL DEPENDS!

Renaissance Men are … a snare, a

myth, a delusion!

6. 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.

7. Leaders …

SHOW UP!

Rudy!

P.S. …

Mark McCormack: 5,000 miles for a 5

min. meeting!

7A. Leaders … LOVE the

MESS!

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

going fast enough.”

Mario Andretti

7B. Leadership

Is Improv!

Duct Tape Rules!

“Andrew Higgins, who built landing craft in WWII, refused to hire graduates of

engineering schools. He believed that they only teach you what you can’t do in engineering

school. He started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D.

Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ”

Stephen Ambrose/Fast Company

8. Leaders Groove on

AMBIGUITY!

“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

9. Leaders

DO!

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!)

9A. Leaders

Re-do.

“Sony Electronics has a well-earned reputation for persistence. The company’s first entry into a

new field often isn’t very good. But,

as it has shown in laptops, Sony will keep trying until it gets

it right.”Business Week (5/01)

“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

He who has the

quickest O.O.D.A. Loops* wins!

*Observe. Orient. Decide. Act. / Col. John Boyd

9B. Leaders Are

PLAYFUL.

“You can’t be a serious innovator unless and until you are ready,

willing and able to seriously play. ‘Serious play’ is not an oxymoron;

it is the essence of innovation.”

Michael Schrage, Serious Play

Axiom: Never trust a “boss” with

no toys in his/her office!

10. BUT … Leaders

Know When to Wait.

Tex Schramm: The

“too hard” box!

Axioms: (1) Pick your battles carefully. (2) Sometimes inaction

promotes sorting out & preserves options.

11. Leaders …

DELIVER!

11A. Leaders

KNOW They Can Make a Difference!

“Leaders don’t

‘want to’ win.

Leaders ‘need to’ win.”

#49

WILLPOWER RULES! (12.12.2001) “In the end the war is not about statistics, deadlines, short

attention spans of 24 hour news cycles. It’s about will, the projection of will, the clear, unambiguous

determination of the president of the United States and the American people to see this through.—DR.

Given our lack of knowledge, LT investments made on the basis of “animal spirits—a spontaneous

urge to action rather than inaction, not as the outcome of a weighted average of quantitative benefits multiplied

by quantitative probabilities.”—JMK.

Texas’ “top ten percenters” GPAs > than those with SATs 200-300 points higher.

“A real superstar is mean in a particular way. He is Michael Jordan or

Cal Ripken, greedy for records and history. Armored and self-contained, his

inner core is a hard knot of physical talent and fierce will. Nothing penetrates that core, and anybody or anything that

gets too close is out of his life.”

Michael Sokolove, “The last Straw”

11B. Leaders Are …

Optimists.

Hackneyed but none the less

true: LEADERS SEE CUPS AS “HALF

FULL.”

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

12. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

The “Gus Imperative”!

13. Leaders

FOCUS!

“To Don’t ” List

14. Leaders …

Set CLEAR DESIGN SPECS.

JackWorld/1@T: (1) Neutron 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!

Danger: S.I.O. (Strategic

Initiative Overload)

15. 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.

16. Leaders Trust in

TRUST!

Credibility!

16A. Leaders Infuse the Dreaded-All Important “Evaluation Process”

with CREDIBILITY!

25 = 100

17. Leaders …

Understand the Ultimate Power of RELATIONSHIPS.

“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

17A. Leaders

Wire the Joint!

Winners wire. Losers are

slaves to rank.

“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

17B. Leaders Are

Natural EMPOWERMENT

FREAKS!

18. Leaders Know …

Women Roar/ Women Rule.

“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

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

(18A. Oh Yeah … and Women Buy All the Stuff)

$4.8T > Japan

9M/27.5M/$3.6T > Germany

If It Ain’t Broke … Break It.

19. Leaders …FORGET!/

Leaders … DESTROY!

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

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

Cortez!

Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.

The [New] Ge Way

DYB.com

20. 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)

21. Leaders …

HONOR THE USURPERS.

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

22. Leaders …

HANG OUT WITH FREAKS!

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

Axiom: Never hire anyone without an aberration in their

background!

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

Would Craig Venter (Luciano Benetton)

come to work for us?

“I would like to think we could

attract students with green

hair. We will take pink and

blue and orange hair, too.”

Shirley Tilghman, Princeton

Yikes: “What worries me is that I can’t see why any ambitious young person would want to

join my company, or stay here for long if they did join. My most important job is to change that

as fast as I can.”—CEO, giant multinational, to Charles Handy

Message: TAKE

SOMEONE NEW & WEIRD TO LUNCH

TODAY OR TOMORROW. [Inundate yourself with weird.]

23. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

Sam’s

Secret #1!

“Fail faster. Succeed sooner.”

David Kelley/IDEO

24. Leaders Make …

BIG MISTAKES!

“Reward excellent

failures. Punish mediocre successes.”

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

24A. Leaders Honor Mistakes & Create

“Blame-free ‘Cultures.’ ”

Accountability: YES!Never-ending witch

hunts: NO!

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

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.”

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

The Top Creators of Shareholder Value

Accept depressed earnings for several quarters to support hot productExpense rather than capitalize new venture costs

Bonuses without caps

Source: Fortune (09.17.201)

“The highest performing companies have well-developed systems for killing ideas

their customers don’t want. As a result, these companies find it very difficult to invest adequate resources in disruptive

technologies—lower margin opportunities that their customers don’t want—until they

want them. And by then it’s too late.”

Clayton Christensen, The Innovator’s Dilemma

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

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

26A. Leaders … Make Their Mark /

Leaders … Do Stuff That Matters

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

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

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

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

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Delphi … Etc. … Etc.

Springs

Collections.Flexible sourcing.

Packaging.Merchandising.

Promotion.Design.

Systems & Site mgt.

= Turnkey.

28. Leaders

LOVE the New Technology!

100 square feet

“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!

28A. Needed? Type IV Leadership: Technology

Dreamer-True Believer

The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent

Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True

Believer

Talent.

29. 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.

30. Leaders Don’t Create “Followers”:

THEY CREATE LEADERS!

Brand You, Big Time!

I AM AN ARMY OF

ONE

31. Leaders “Win Followers Over”

WHAT AN IDIOT: “Instead of employees being in the driver’s

seat, now we’re in the driver’s seat.”

PJ: “Coaching is winning

players over.”

32. Leaders “Manage” Their

EVP/Internal Brand Promise.

MantraM3

Talent = Brand

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward

Source: Ed Michaels et al., The War for Talent

33. 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

33A. Leaders Pursue

Poets!

Gardner’s MI7: Logical-mathematical, Linguistic,

Spatial, Musical, Bodily-kinesthetic,

Interpersonal, Intrapersonal.

“Expose yourself to the best things humans

have done, and then try to bring those things

into what you’re doing.”Steve Jobs

Passion.

34. Leaders …

Out Their

PASSION!

!

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

35. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

BZ: “I am a … Dispenser of Enthusiasm!”

36. 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.]

36A. Leaders Know …

“Culture Change” Takes But a Minute. (No Bull!)

What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

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 Now!Culture Change

Lives in the Moment!Culture Change is

Entirely in Your Hands!

The “Job” of Leading.

37. Leaders Know It’s

ALL SALES ALL THE TIME.

TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”) (See TP’sThe Project50.)

37A. Leaders

LOVE “POLITICS.”

TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

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!

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

Joe J. Jones Joe J. Jones 1942 – 2001 1942 – 2001

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!

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

“Leaders are living individuals whom employees smell, feel, touch their

presence.”#49

“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop

and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ ‘You can tell

that this is really Prof. C’s life.’ ”

Parker Palmer, The Courage to Teach

40. Leaders Say

“Thank You.”

“The deepest human

need is the need to be appreciated.”

William James

“The two most powerful things

in existence: a kind word and a thoughtful gesture.”

Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

40A. Leaders Are …

Graceful.

“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under

fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

Rodale’s on “Grace” …

elegance … charm … loveliness … poetry in motion … kindliness ..

benevolence … benefaction … compassion … beauty

41. Leaders

LISTEN!

See Stephen! (Empathetic Listening)

41A. Leaders Are …

Curious.

41B. Leaders

Are … Great Learners.

TP/08.2001: The Three Most Important Letters …

WHY?

42. Leadership Is a …

Performance.

“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

43. Leaders … Are The Brand

“WHO ARE YOU [these days] ?”

TP to Client

“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

to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand

that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-

to-moment actions.

“You must be the change you

wish to see in the world.”

Gandhi

44. Leaders …

Have a GREAT STORY!

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

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“Early in my career in the law I learned

that … he who has the best story

wins.”JQ Adams/A Hopkins to T Joadson/M Freeman

“Stories of identity – narratives that help individuals think about

and feel who they are, where they come from, and where they

are headed – constitute the single most powerful weapon

in the leader’s arsenal.”Howard Gardner, Leading Minds: An Anatomy of Leadership

MBSA!*

*Managing By Story-ing Around/David Armstrong

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley Brown

45. Leaders Seed & Pursue &

Recognize (Weird) “Demos.”

45A. Leaders

Create BUZZ!

Demos! Heroes! Stories!

L.B.I.W.D. (Leading

By Inducing Weird Demos)

Leaders aimed on changing their

world identify palpable heroes, who executed palpable projects—they

point to these people and say to the masses, “See, here it is, done by one of your own.” (And then they

“deep-dip” a few of those heroes to demo their seriousness.)

Each VP a V.C.: Portfolio of high-risk investments in

people & ideas from all across the company.

Introspection.

46. Leaders …

Enjoy Leading.

Warren’s “Whoops Moment” …

“Warren, I know you want to ‘be’

president. But do you want to ‘do’

president?”

Thom Mayer: Docs who want to heal the

sick vs. Docs who want to be M.D.s.

46A. 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.)

46B. But …

Leaders have MENTORS.

The Gospel According to TP: Upon having the Leadership

Mantle placed upon thine head, thou shalt never hear the unvarnished

truth again!* (*Therefore, thy needs one faithful

compatriot to lay it on with no jelly.)

47. Leaders

LAUGH!

47A. But … Leaders Know

“It’s My Fault.”

You recruited ’em.You hired ’em.

You trained ’em. You evaluated ’em.

You “motivated” ’em.

47B. Leaders Don’t Scapegoat /

Allow Scapegoating.

“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.

48. Leaders … Take Breaks.

Zombie!Zombie!Zombie!Zombie!

The End Game.

49. Leaders ???

:

“Leadership is the PROCESS of

ENGAGING PEOPLE in CREATING a LEGACY

of EXCELLENCE.”

“ ‘It’s only business, not personal’ … IT

ALWAYS IS PERSONAL.”

“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”

Bonus: Boss Talk

Branding: Kevin Roberts: “The great brands have mystery and

sensuality. Apple is the most sensual product since the

vibrator.”/ Tina Brown: “You should be able to throw a magazine on the floor at any page and know

whose magazine it is.”/

The Perils of “Me-too”: Stephen Hardis (Eaton): “Don’t have your

resources trapped in areas that are inherently zero-sum games with a very marginal return.”/ Phil Condit (Boeing): “Just doing what your competitor does

is the biggest opportunity to lose money. Douglas and Lockheed built

tri-jets to the identical specs and beat each other silly.”

Jeff Bezos: “It’s easy to let the in-box side of your life overwhelm

you, so you become a totally reactive person. The only remedy I know is to set aside some fraction

of your time as your own. I use Tuesdays and Thursdays as my proactive days, when I try not to

schedule meetings.”

Jeff Bezos: “I'm often encouraging people to go faster, even if it means a

worse initial product. I want us to start learning. The cost of trying to avoid mistakes is huge in terms of speed.”

Robert Miller (Federal-Mogul), on Turnarounds: (1) Tell the truth.

Play it straight. (2) Make decisions. Don’t study things to

death. (3) Listen to your customers. They are usually more perceptive than you are

about what needs to be done.”

Juergen Schrempp/DaimlerChrysler

“Digital decision making”/ “the danger of the deadly

wish for harmony”

Boss Talk/WSJ

Provide a simple, clear, exciting & energizing focus.Obsess on TALENT.Speed > Perfection. (Clarity, motivation, rapid adjustment.)

Leap > Line extension. (Beware “me-too,” perfecting yesterday.)

Tell the truth.Control your calendar.Get out of the office.Listen to customers face-to-face—at their place.

50. Leaders Know

WHEN TO LEAVE!

Thank You!