Distinct or … Extinct
Tom Peters Seminar2000
Corning
Quality Milestone 2000
29 June 2000
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
An Age of Passion:
1 Year = 1.5 Wal*Marts
03.27.99: $167B
03.27.00: $555B
P.S.: Wal*Mart = #8 in 2000
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
Forget > Learn
“The problem is never
how to get new,
innovative thoughts into
your mind, but how to get
old ones out.”
Dee Hock
Headlines 06.15.00: Your Call!
Bell Atlantic-GTE
vs.
Lucent
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
“Our ideal acquisition is a small
startup that has a great
technology product on the
drawing board that is going to
come out in six to twelve months.
We buy the engineers and
the next generation
product. …”
John Chambers, Cisco
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
Expected “Batting Average”?
Intel’s venture fund:
275 investments, $8B
Source: Fast Company , eCompany
C.E.O.
to
C.D.O.
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Brand Inside
Brand Org:
Lean, Linked,
Electronic & Malleable
108 X 5
vs.
8 X 1*
* 540 vs. 8
And Now the Equivalent …
White Collar
Revolution!
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon/WebMD
* ’twixt docs, patients, insurers and providers;
$275B of $400B in waste; source: Michael Lewis,
The New New Thing
[ Incidentally …
CEO Jeff Arnold
Age: 30
First Start-up: Age 24]
“This is the Age of Ageism: The
real innovator’s dilemma isn’t
‘disruptive technologies;’ it’s
the relentless rise of the quasiadolescents who wield them.”
Michael Schrage
“A good plant engineer in a paper mill may
create $100K to $300K in value per year. An
outstanding software product developer may
create a product worth $1M to $300M. Talented
people are less likely to wait their turn. We
used to view young people as trainees;
now they are authorities. Arguably this is
the first time the older generation can –
and must – leverage the younger
generation very early in their careers”
Ed Michaels, War for Talent (05.17.00)
“We want to be the
air traffic controllers
of electrons.”
Bob Nardelli,
GE Power Systems
So does Enron!
[et al.]
Brand Inside
Brand Work!
So what will be the
Basic Building
Block of the
New Org?
New Orleans
April 2000:
Jazz Festival +
NAPM
Welcome to the Y2K
New Orleans Jazz
and Real Cool
Purchasing Dudes
Festival!
You are the
Rock Stars
of the
B2B Age!
Chicago
November 1999:
SHRM
“support function” / “cost
center” / “bureaucratic
drag”
or …
“Rock Stars of the
‘Age of Talent’ ”
Enter …
The WOW
Project!*
*The Project50
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget …
who cares?”
anon. seminar participant (4/99)
“You really got to me. So
many of our information technology
projects take on a life of their own,
and I know they’ll never end up as
more than ‘mediocre successes.’ ”
CEO, F100 financial
services company (10-98)
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Brand Inside
Brand You:
Distinct …
or
Extinct
DISTINCT … OR EXTINCT!
“If there is nothing very special
about your work, no matter how
hard you apply yourself, you won’t
get noticed and that increasingly
means you won’t get paid much,
either.”
Michael Goldhaber, Wired
Brand Inside
Brand Talent: The
Great War for Talent
Issue Y2K
The Great War
for Talent!
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
“The market’s being divided
up right now. We’re in a
tough competition [with the
U.S. and the U.K.] for
the best brains.”
Gerhard Schroeder, on Germany’s new
tech immigration policy
[Frankfurter Allgemeine/06.02.00]
Winner Take All!
From “1, 2 or 3” [JW] to “Best
talent in each industry segment
to build better
models and proprietary
intangibles” [EM]
Ed Michaels, War for Talent (05.17.00)
Home Depot Goes Long!
7 new growth initiatives ($20B to
$100B in 5-7 years)
Arthur Blank: BEST PERSON IN
THE WORLD TO HEAD EACH
INITIATIVE
E.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
There is no “talent shortage” …
if …
you are a
GPTW*
*Great Place To Work
“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
“The Silent Battlefield”
50% of middle mgrs. in big corps. report
“moderate to high” chance they’ll change
companies within 3 years
More loyalty to geography than companies
Most companies: don’t know how many 2540 year olds they’re losing, have no special
retention programs
Ed Michaels, War for Talent (05.17.00)
“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)
Dudes With ’Tude
“Our business needs a massive
transfusion of talent. And talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
“He grew his hair long, played
guitar in a rock band, chased
girls, got into trouble. At age 17
he was flogged by his house
master, who described him as
‘the most difficult boy I’ve ever
had to deal with.’ ”
Solution?
Slip Ritalin into his food …
Or …
Elect Him Prime Minister
Tony Blair*
*talk/May 2000
Talent War Y2K!
–All out!/ Time consuming!
–Never ending!/ Unwinnable!
–Includes everybody!/ Everybody’s
game! (“We’re all in sales.”)
–Expensive!
–Cool!/ WOW!/ Fun!/ Creative!
–Strategic!/ Core competence!
Talent = Brand
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity 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
“We make over three new
product announcements a
day. Can you remember
them?
Our customers can’t!”
Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing similar
people, with similar educational
backgrounds, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“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
GE’s New Six Sigma Approach
Old view: Out of service 9 days. 4
days are transport, which is client
responsibility.
New view: ALL 9 DAYS ARE OUR
RESPONSIBILITY! Why? 9 days =
Client’s World.
Source: Steve Kerr, VP, GE
Brand Outside
Strategy 1:
Lead the Customer!
“These days, you can’t succeed as a
company if you’re consumer led –
because in a world so full of so much
constant change, consumers can’t
anticipate the next big thing.
Companies should be idealed and consumerinformed.”
Doug Atkin, partner,Merkley Newman Harty
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the
Business!
Tomorrow Today: Cisco!
90% of $14.4B
(Cisco Connection ONLINE)
Save $500M
(service and tech support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting)
And Larry?
Service Call Center
$300.00 per transaction
to $1.50
Savings: $550,000,000.00
Source: Ralph Seferian, Oracle
[part of O’s $1B saving – on a rev.
base of $9B; $1B addnl this year]
GM/Ford/DaimlerChrysler (02-27)
Covisint
$240B (+$500B)
I.P.O.
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
No Room for “Competent”* Sorts
Beer Wholesalers
Personal Trainers [FitLinxx]
Financial Planners
Car Dealers
* LVA, “M”VA … vs.
HVA [Web-enhanced]
Defense-Offense:
Systems Integration/HVA
United Technologies
GE
Delphi
E.g. …
GE: boxes [transformers, etc.] to
“air traffic controllers of electrons”
UTC/Otis + Carrier: boxes to
“integrated building systemssolutions”; P&W, etc.: boxes to
major aircraft subsystems
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
Brand Outside
Strategy 3:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater &
Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-based
Leadership
“Car designers need to create a
story. Every car provides an
opportunity to create an adventure.
…
“The Prowler makes you smile. Why?
Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer
Audi TT
Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Plot
Passion
“This is the end of the pure
product era. For instance, car
makers are beginning to
understand that the car is a
platform for delivering services
that drive the customer
experience.”
Carly Fiorina, HP @ Comdex ’99
Brand Outside
BRAND POWER!
Brand It!
Now, More Than Ever!
“The increasing difficulty in
differentiating between products and
the speed with which competitors take
up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant,
Management [New Zealand]
“Create a Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“The challenge for IBM, AT&T and
other mainstream companies is to
re-instill a sense of adventure in
recruits.”
Burke Stinson, AT&T
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
“If things seem under
control, you’re just
not going
fast enough.”
Mario Andretti
Main Messages …
War for Talent!
[pay, early responsibility, recruit rebels]
Value Added Through Systems
Integration [commodity “boxes” to “air
traffic controllers for electrons”]
Run All on the Internet [Oracle model]
Brand Power! [for a “Tech Company”]