Brand Revolution: Embracing Change to Thrive in the 21st Century

1. Tom Peters Seminar2000:Distinct or … ExtinctThe 21st Century CFODeloitte & ToucheLaguna Niguel09November2000

2. StructurePart I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

3. Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

4. Forces @ Work IThe Destruction Imperative!

5. “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

6. 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

7. “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

8. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

9. “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

10. 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]

11. Brand InsideBrand Org:Lean, Linked, Electronic & Malleable

12. White Collar Revolution!

13. “AssetlessCompany”John Bryan, CEO, on selling all Sara Lee’s manufacturing

14. 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.”

15. Advance ParadigmData on 165,000,000 prescriptions per year; docs and insurers have access to recordsReduces med errors; saves $2.88 per scrip [prescribing errors]; docs save $14,000 per year in review timeRev in ’99: $2B; $477M in ’98Source: Business Week (09.00)

16. Cisco, Dell =Brand-owning companies who sell Customer SatisfactionSource: David Schneider & Grady Means, MetaCapitalism

17. Brand InsideBrand Work: The Professional Service Firm Model

18. So what will be the Basic Building Block of theNew Org?

19. Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.

20. “P.S.F.”: SummaryH.V.A. Projects (100%)Pioneer Clients Hot “Talent” (see below)Adventurous “culture”Point of View (Methodology)W.W.P.F. (100%)

21. Brand InsideBrand Talent: The Great War for Talent

22. “When land was the scarce resource, nations battled over it. The same is happening now for talented people.”Stan Davis & Christopher Meyer, futureWEALTH

23. “We have transitioned from an asset-based strategy to a talent-based strategy.”Jeff Skilling, COO, Enron

24. From “1, 2 or 3” [JW] to …“Best talent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent (05.17.00)

25. “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia Pacificchanged 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)

26. “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

27. “The Rise of the Teen Guru”“They’re brilliant, ambitious, and almost intuitively gifted at technology. A new generation of whiz kids are gaining unprecedented power and authority.”Source: Cover story, Brill’s Content, 7-8/00

28. 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

29. Women and new-economy management …

30. The New Economy …Shout goodbye to “command and control”!Shout goodbye to hierarchy!Shout goodbye to “knowing one’s place”!

31. Women’s Stuff =New Economy MatchImprov skillsRelationship-centricLess “rank consciousness”Self determinedTrust sensitive IntuitiveNatural “empowerment freaks” [less threatened by strong people]Intrinsic [motivation] > Extrinsic

32. “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

33. “Boys are trained in a way that will make them irrelevant.”Phil Slater

34. Mantra2000Talent = Brand

35. Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (“Failures are for fools.”) I love “Yes men” Self-contained Seat 9B, UA233 Address: Rick@Corp.com Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners New Economy: Was-Is

36. Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

37. Forces @ Work IIThe Commodity Trap

38. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business

39. “We make over three new product announcements a day. Can you remember them? Our customers can’t!”Carly Fiorina

40. Brand OutsideThe Death Knell for Ordinary: Pursuing Difference!

41. The Eight StrategiesPursue Pioneering CustomersRe-invent via E-commerce & the WebScramble up the V.A. ChainEmbrace DesignEmphasize the Total ExperienceSeek Out “Opportunity #1” [& #1A]Cede ControlBecome Brand-obsessed

42. Brand OutsideStrategy 1:Hitch Your Wagon to Pioneers!

43. “Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.”John Roth, CEO, Nortel

44. Brand OutsideStrategy 2:Use E-Commerce toRe-inventEverything!

45. Tomorrow Today: Cisco!90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships directGross margin: 65%; Net margin: 28%Savings in service and support from customerself-management:$500M

46. Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the Web per se.Schwab: $25B per week in asset transactions [80% of trades] [Transition to e.Schwab: Rev. fell, then quickly doubled]

47. Tomorrow Today: Cisco!90% of $20B; save $550MC.Sat e >> C.Sat HCustomer Engineer Chat Rooms/CollaborativeDesign ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

48. Anne Busquet/ American ExpressNot: “Age of the Internet”Is: “Age of Customer Control”

49. WebWorld = EverythingWeb as a way to run your business’ innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor

50. Message:eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.