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Part I: Brand Inside Part II : Brand Outside Part III : Brand Leadership

Tom Peters Seminar M3 Rollercoaster Days: Learning to …Rock & Roll! IMRA/Logistics2001 Orlando 01.09.01. “There will be more confusion in the the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case.

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Part I: Brand Inside Part II : Brand Outside Part III : Brand Leadership

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  1. Tom Peters SeminarM3Rollercoaster Days: Learning to …Rock & Roll!IMRA/Logistics2001Orlando 01.09.01

  2. “There will be more confusion in the the business world in the next decadethan in any decade in history. And the current pace of change will only accelerate.”Steve Case

  3. “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)

  4. Zounds: Bradlees. Wards. Sears/89. Same-store Xmas sales. Olds. Cherokee. CEOs @ P&G, Coca Cola, Gillette, Xerox, Lucent, Aetna, Mattel, Chrysler USA, Home Depot (sorta). AT&T Breakup III. NASDAQ.

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

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

  7. 90% DoomedWhite Collar Revolution!

  8. New OrleansApril 2000:NAPM

  9. Youare the …Rock Stars of the B2B Age!

  10. Brand InsideBrand Talent: The Great War for Talent

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

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

  13. “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)

  14. So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager, $3-4M per year. Pay: $135,000 plus $90,000. Net: $2-3M for $50K.Source: Ed Michaels et al., The War for Talent, re Georgia Pacific

  15. Women in the ’00s:Born to Lead!

  16. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts on almost every measure”Title, Special Report, Business Week, 11.20.00

  17. “On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-first-century economic community are going to need the natural talents of women.Helen Fisher, The First Sex: The Natural Talents of Women and How They are Changing the World

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

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

  20. Brand InsideReprise:THINK WEIRD: The High Standard Deviation Enterprise

  21. Renewal = The Weird 10 = The “High S.D.” Enterprise/IndividualPioneer [Weird] AcquisitionsPioneer [Weird] Customers & Alliance Partners[Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]Divide & Conquer/“Sell-by” Pioneer Assignments/Pioneer Projects/Pioneer PartnersHire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird BoardWeed 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. Sense of Humor [Rhapsodize Over Thine Cool Failures!]Re-enforce a “Culture of Disrespect”/Passionate Piracy

  22. Saviors-in-WaitingDisgruntled CustomersFringe CompetitorsRogue EmployeesEdge SuppliersWayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

  23. “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

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

  25. Forces @ Work IIThe Commodity Trap

  26. “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 Businessrosecr

  27. Brand OutsideStrategy 1:Use E-Commerce toRe-inventEverything!

  28. 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%Annual savings in service and support from customer self-management: $550M

  29. Enron eWorld: 30 times a day (“price a structured trade”/early 1999, per John Arnold, 26); late 2000: 30 times per … minute.Long-term gas contract, 1989: 9 months, 400+ deals; late 90s: 2 weeks, 2 per week; late 2000: 5 such deals per daySource: www.ecompany.com (1-2/2001)

  30. 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)

  31. SUMMARY: REINVENT EVERYTHING

  32. “Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.”Jack Welch

  33. “We’ve put the word out to all of our suppliers: by the end of the year [2000] we’ll only do purchasing over the Internet.”John Paterson, C.P.O., IBM [$50B from 18,000 suppliers]

  34. 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

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

  36. Message:There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.

  37. “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. …“In a true ebusiness, customers can come to your Website and evaluate products, be connected to the supply chain to get commitment for delivery and pricing. It also includes all the tangential services like billing and customer service, which should be automatic and simultaneous.”Ray Lane, Kleiner Perkins

  38. Brand OutsideStrategy 2:Design Matters!

  39. 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

  40. Design Transforms Even the [Biggest] Corporations!TARGET… “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

  41. Design “is” … WHAT & WHY I LOVE. LOVE.

  42. Design “is” … WHY I GET MAD. MAD.

  43. Design is neverneutral.

  44. Hypothesis:DESIGN is the principaldifference between love and hate!

  45. THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what I love and I hate what I hate. [Openly.] 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 “one of those things” … that damn few companies put – consistently – on the front burner.

  46. Brand OutsideStrategy 2A:It’s the Experience!

  47. “Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & Every Business a Stage

  48. “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

  49. 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

  50. “Car designers need to create astory. Every car provides an opportunity to create anadventure. …“The Prowler makes yousmile. Why? Because it’s focused. It has aplot, a reason for being, apassion.”Freeman Thomas, co-designer VW Beetle; designer Audi TT

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