Tom Peters Re-Imagine! New Business for a Disruptive Age 03.05.2003 If you dont like change, youre
going to like irrelevance even less. General Eric Shinseki, Chief of Staff, U. S. Army You must become an ignorant man again And see the sun again with an ignorant eye And see it clearly in the idea of it. --Wallace Stevens/Notes Toward a Supreme Fiction
Sequenom/David Ewing Duncan/Wired11.02 Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification process. This, Im told, is the first time a healthy human has ever been screened for the full gamut of genetic-disease markers. On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy
tests. You cant look at humanity separate from machines; were so intertwined were almost the same species, and the difference is getting smaller. 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 IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. Al-Qaeda represents a new and
profoundly dangerous kind of organizationone that might be called a virtual state. On September 11 a virtual state proved that modern societies are vulnerable as never before.Time/09.09.2002 The deadliest strength of Americas new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by
fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. Business as usual wont do it, he said. His answer is to develop swifter, more lethal ways to fight. Big institutions arent swift on their feet in adapting but rather ponderous and clumsy
and slow. The New York Times/09.04.2002 From: To: Weapon v. Weapon
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
The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational Limits. In an era when terrorists use satellite US gatekeepers stand armed against them with pencils
and paperwork, and archaic computer systems that dont talk to each other. phones and encrypted email, Boston Globe (09.30.2001) Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 her office
quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.
In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys command and control) and working directly with the real players. The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.Ned Desmond/Broadbands New Killer App/Business 2.0/ OCT2002 A Big Electronics
Show Is All About Connections headline, New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX NOKIA Connecting People
SOS : Emergency Agencies Often Unable to Talk to Each Other headline, p1, USA Today/11.20.2002
Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can
walk around with a computer thats pre-programmed. If the physician wants, well go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002) If early soldiers idealized Napoleon or Patton, network-centric warriors
admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.Tom Stewart, Business 2.0 The New Infantry Battalion/ New York Times/12.01.2002
Pentagons Urgent Search for Speed. 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities. Find-to-hit: 45 minutes to 15 minutes in just one year. Erics Army
Flat. Fast. Agile. Adaptable. Light But Lethal. Brand You/ Talent/ I Am An ARMY Of One. Info-intense. Network-centric.
The New Infantry Battalion/ New York Times/12.01.2002 Pentagons Urgent Search for Speed. 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities. Find-to-hit: 45 minutes to 15 minutes
in just one year. GUERRILLA SHIPS FOR A NEW KIND OF WAR: The Navy Is Preparing for Battles Closer to Shore BW/01.2003/LCS/Littoral Combat Ship
Uncertainty: We dont know when things will get back to normal. We no longer know what normal means.
Ambiguity: I Believe 1. Change will accelerate. DRAMATICALLY. 2. We will RE-INVENT THE WORLD IN THE NEXT TWO GENERATIONS. (Business Health Care Politics War Education Fundamentals of Human
Interaction.) 3. OPPORTUNITIES are matchless. 4. You are either ON THE BUS or OFF THE BUS. 5. I WANT TO PLAY! AND YOU? Successful Businesses Dozen Truths: TPs 30-Year Perspective 1. Insanely Great & Quirky Talent.
2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the Bullshit that Marks Normal Industry Behavior. 5. A Maniacal Bias for Execution and Utter Contempt for Those Who Dont Get It. 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy.
9. Willingness to Lead the Customer and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. Reward Excellent Failures. Punish Mediocre Successes. 11. Courage to Stand Alone on Ones Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power. I. NEW
BUSINESS. NEW CONTEXT. 1.All Bets Are Off. <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift
1800s: > prior 900 years 1900s: 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 Vernor Vinge/Mr. Singularity The transition time from human
history to post-human singularity time, Vinge thinks, will be astonishingly shortmaybe one hundred hours from the first moment of computer selfawareness to computer world conquest.Esquire/12.2002 We are at a pivotal point in history. We are at one of a
half dozen turning points that have fundamentally changed the way societies are organized for governance. Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History Theres going to be a fundamental change in the global economy unlike
anything we have had since the cavemen began bartering. Arnold Baker, Chief Economist, Sandia National Laboratories NOW THATS B-I-G! The period 2000-2002 will bring the single greatest change in
worldwide economic and business conditions since we came down from the trees. David Schneider & Grady Means, MetaCapitalism In 25 years, youll probably be able to get the
sum total of all human knowledge on a personal device. Greg Blonder, VC [was Chief Technical Adviser for Corporate Strategy @ AT&T] [Barrons 11.13.2000] I genuinely believe we are living through the
greatest intellectual moment in history. Matt Ridley, Genome Doctors are faced with the very real threat of irrelevance in ten years. Youll go to a lab, have a blood sample drawn, and a readout of your genetic deficiencies will be
producedalong with Doctors Orders for appropriate treatment; only there wont be any doctor. Leading Pediatric Cardiologist (11.2002) Yo, Bioinformatics! Researchers say they have found a way to mate human cells with circuitry in a bionic chip The
tiny device smaller and thinner than a strand of hair combines a healthy human cell with an electronic circuitry chip. AP/AOL/02-00 Help! Theres nobody in the cockpit. In the future, will the airlines no longer need pilots?
Grumman Global Hawk/ 24 hours/ Edwards to South Australia Source: The Economist/12.21.2002 We are in a brawl with no
rules. Paul Allaire S.A.V. Strategy meetings held once or twice a year to Strategy meetings needed several
times a week Source: New York Times on Meg Whitman/eBay 2. The Destruction Imperative. It is generally much easier to kill an
organization than change it substantially. Kevin Kelly, Out of Control C.E.O. to C.D.O.
Facing Crisis, Media Giants Scrounge for Fresh Strategies headline, P1, Wall Street Journal/ 01.14.2003 We must not only transform our armed forces but the Defense Department that serves them
by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be validated, but rather anticipates them before they appear and develops new capabilities to dissuade them and
deter them. Donald Rumsfeld, Foreign Affairs 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
Analysts said we dont care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see 2 or 3 years of EPS growth. I preached revenue and the analysts eyes would glaze over. Now revenue is in because so many got caught, and earnings went to hell. They
said, Oh my gosh, you need revenues to grow earnings over time. Well, Duh! Dick Kovacevich, Wells Fargo (in ABA Banking Journal) 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 Mr. Foster and his McKinsey
colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.Financial Times/11.28.2002
Survivors underperform. Its just a fact: Dick Foster 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 Innovators Dilemma 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 When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Im sure
there are success stories out there, but at this moment I draw a blank. Committee, answered: Mark Sirower, The Synergy Trap Conglomerates dont work James
Surowiecki, The New Yorker (07.01,2002) MERGERS: Why Most Big Deals Dont Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth. BusinessWeek/10.14.2002
I believe large research organizations are less transparent, with less communication and more bureaucracy and it is more difficult and problematic to produce innovations in large institutions. Franz Humer, CEO, Roche Way to Go, Guys
2002 write downs from recent acquisitions $1,000, 000,000, 000* *$1 trillion (Source: Harpers Index 04.2002)
Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, CEO, Reuters
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
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. [Natures] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for mergings 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] TP on Acquisitions 1. Big + Big = Disaster. (Statistically.) (There are exceptions; e.g., Citigroup.)
2. Big (GE, Cisco, Omnicon) acquires small/specialist = Good if you can retain Top Talent. 3. Odds on achieving projected synergies among Mixed Big cultures: 10%. 4. Max Scale Advantages are achieved at a smaller size than imagined. 5. Attacked by Big, Mediocre Medium marries Mediocre Medium to bulk up. Result: Big Mediocrity or worse. 6. Any sizeif Great & Focusedcan win, locally or globally.
7. Increasingly, Alliances deliver more value than mergers and clearly abet flexibility. A Bakers Dozen Merger Messages: Private Sector & DHS/BTSD 1. Attitude Rules: Opportunity or Pain in 2. Unique time for Deep Re-assessment. (WE MUST RE-INVENT THE ESSENTIAL IDEA OF HOMELAND SECURITY.) 3. THIS SORT OF THING ONLY HAPPENS ONCE EVERY SEVERAL DECADES! (I.E.: Dont blow the Main Chance!)
4. Avoid getting totally caught up in (necessary) details. (KEEP YOUR EYE ON THE B-I-G OPPORTUNITY.) 5. Lets assume you only hold this job for the next few months. MAKE A DAMN DIFFERENCE EVERY DAMN DAY. 6. What happens in the next few months is the principal basis by which your entire professional career will be judged. 7. How well (IMAGINATIVELY!!!) you do this matters to 280,000,000 Americans. 8. Every morning, say quietly to yourself, GROW UP. Forget Age Old Turf Disputes. (TURF WARFARE IS OSAMAs-TERRORISMs NO. 1 OPPORTUNITY.)
9. Inclusiveness matters. Be incredibly careful about Respect & Involvement. 10. Score some Quick Wins. (Rudys Rule.) Needed: New Behaviors. Focus on the Positives. (Bobs Rule.) 11. BE INSANELY LAVISH IN PRAISE OF SMALL ACTS OF COOPERATION. (Be publicly brutal to the smallest act of turf warfare.) 12. GOOD DECISIONS MADE TODAY BEAT GREAT DECISIONS DELAYED FOR MONTHS. MOMENTUM & MORALE MATTER. DELAY = CANCER. 13. VISIBILITY RULES!
CEOs appointed after 1985 are 3X more likely to be fired than CEOs appointed before 1985 Warren Bennis, MIT Sloan Management Review The [New] Ge Way DYB.com
Top-performing Companies Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable Jeffrey
Sonnenfeld, Yale School of Management Change the rules before somebody else does. Ralph Seferian, VP, Oracle
Most of our predictions are based on very linear thinking. Thats why they will most likely be wrong. Vinod Khosla, in GIGATRENDS, Wired 04.01 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
RM: A lot of companies in the Valley fail. RN: Maybe not enough fail. RM: What do you mean by that? RN: Whenever you fail, it means youre trying new things. Source: Fast Company
The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo (03.02) 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 Axiom (Hypothesis): We have
been screwed by Benchmarking Best Practice C.I./Kaizen. Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity in discontinuous/ambiguous times.
In the modern military, risk is anathema to rising stars, who cannot afford any slip-ups on their records. Zero defects and zero tolerance are common bywords.Newsweek/09.16.02 Organize for performance & customer
satisfaction. Disorganize for renewal & innovation. Rumsfeld values mavericks and tries to protect and promote them.
Newsweek/ 09.16.02 Rose gardeners face a choice every spring: how to prune our roses. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. You will reduce each rose plant to a maximum of three stems. This represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the the roses core business. However, if this is an unlucky year [late frost,
deer, green-fly invasion], you may lose the main stems or the whole plant! Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will leave more stems on the plant. You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes
resourcesthe extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier. Tolerance of internal weakness, ironically, allows the rose to be stronger in the long run.Arie De Geus, The Living Company Japans Science Gap * Rice farming culture: uniqueness suppressed. Govt 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 December 2000: Swiss House for Advanced Research &
Education. Cambridge, Massachusetts. Xavier Comtesse: You never hear a Swiss say, I want to change the world. We need to take more risks. The Word(s) on Vitality: Gary Hamel
Sell By [jettison old crap] Spin Out [support entrepreneurs] Spin In [buy young firms] No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte Just Say No I dont intend to be known as the King of the Tinkerers. CEO, large financial services company
(New York, 5-99) Jim & Tom. Joined at the hip. Not. Huh?
Quiet, workmanlike, stoic leaders bring about the big Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U. S. Grant/W. T. Sherman TR/FDR/LBJ/RR/JFK M.L. King C. de Gaulle
M. Gandhi W. Churchill M. Thatcher Picasso Mozart Copernicus/Newton/Einstein J. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S. McNealy A. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison
Jim Collins vs. Michael Maccoby quiet, workmanlike, stoic vs. larger-than-life leaders/ egoists, charmers, risk-takers with big visions: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates
But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of time, rather than to live forever. Kjell Nordstrm and Jonas Ridderstrle, Funky Business Built to Last v. Built to Flip The problem with Built to Last is that its a romantic notion. Large companies are
incapable of ongoing innovation, of ongoing flexibility. Increasingly, successful businesses will be ephemeral. They will be built to yield something of value and once that value has been exhausted, they will vanish. Fast Company (03-00) The Futility of Size
Virtualization is the recognition that territorial size does not solve economic problems. Economic access must become the substitute for increasing domain. Richard Rosecrance, The Rise of the Virtual State
In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshedand produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce the cuckoo clock. Orson Welles, as Harry Lime, in The Third Man
Warren Bennis & Patricia Ward Biederman/ Great Groups Dont Last Very Long! Organizing Genius: W.A. Mozart
1756 1791 HE CHANGED THE WORLD AND ENRICHED HUMANITY 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) The difficulties arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourishand old ones to die a
timely death. We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. The current apocalypsethe transition from a state of continuity to state of discontinuityHas the same suddenness [as the trauma that beset civilization in 1000 A.D.]
Richard Foster & Sarah Kaplan, Creative Destruction (The McKinsey Quarterly) The Three Levels of Innovation Transformational Substantial Incremental Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!
Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of
Creative Destruction. Boyd Eglin Flag: 100% AGAINST ZERO DEFECTS
General, if youre not having accidents, your training program is not what it should be. You need to kill some pilots. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) OODA Loop/Boyd Cycle Unraveling the competition/ Quick
Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ So quick it is disconcerting (adversary over-reacts or under-reacts)/ Winners used tactics that caused the enemy to unravel before the fight (NEVER HEAD TO HEAD) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
Fast Transients Buttonhook turn (YF16: could flick from one maneuver to another faster than any aircraft) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Blitzkrieg is far more than lightning thrusts that most people think of
when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity./ Arrange the mind of the enemy.T.E. Lawrence/ Float like a butterfly, sting like a bee.Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
F86 vs. MiG/Korea/10:1 Bubble canopy (360 degree view) Full hydraulic controls (The F86 driver could go from one maneuver to another faster than the MiG driver) MiG: faster in raw acceleration and turning ability; F86: quicker in changing maneuvers
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) USMC COL Mike Wyly: kept the enemy off-balance; they knew Delta Company [RVN] could show up anywhere, anytime
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Maneuverists BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) The stuff has got to be implicit. If it is explicit,
you cant do it fast enough. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) II. NEW BUSINESS. NEW TECH.
3. The White Collar Revolution & the Death of Bureaucracy. 108 X 5 vs. 8X1
= 540 vs. 8 (-98.5%) The coefficient of friction associated with the grunge of business is amazing! Michael Schrage A bureaucrat is an
expensive microchip. Dan Sullivan, consultant and executive coach IBMs Project eLiza!* * Self-bootstrapping/ Artilects
There Is No Such Thing as the Tooth Fairy. IBM Self-healing eServers* *Approximate TV ad copy (11.2002) We own all the intellectual property, we farm out all the
direct labor. Jim McDonnell, VP, IBM [Dont own nothin if you can help it. If you can, rent your shoes. F.G.] The virtual corporation is
research, development, design, marketing, financing, legal, and other headquarters functions wth few or no manufacturing capabilities a company with a head but no body. Richard Rosecrance, The Rise of the Virtual State
Deep Blue Redux*: 2,240 EKGs 1,120 heart attacks. Hans Ohlin : 620. Lars Edenbrandts software: 738.
(50 yr old chief of coronary care, Univ of Lund/SW) *Only this time it matters! Most physicians believe that diagnosis cant be reduced to a set of generalizationsto a cookbook.
How often does my intuition lead me astray? The radical implication of the Swedish study is that the individualized, intuitive approach that lies at the center of modern medicine is flawedit causes more mistakes than it prevents. Atul Gawande, Complications Doctors are faced with the very
real threat of irrelevance in ten years. Youll go to a lab, have a blood sample drawn, and a readout of your genetic deficiencies will be producedalong with Doctors Orders for appropriate treatment; only there wont be any doctor. Leading Pediatric Cardiologist (11.2002)
Probable parole violations: Simple model (age, # of previous offenses, type of crime) beats M.D. shrinks. 100 studies: Statistical formulas > Human In virtually all cases, statistical thinking equaled or surpassed human judgment.Atul Gawande,
judgment. Complications Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computergenerated robots will take over the world. Stephen
Hawking, in the German magazine Focus Vernor Vinge/Mr. Singularity The transition time from human history to post-human singularity time, Vinge thinks, will be astonishingly shortmaybe one hundred hours from the first moment of computer selfawareness to computer world
conquest.Esquire/12.2002 N.W.O./Holy Moly: Unemployment up 2% real wage growth highest since 60s productivity soaring. Source: BW/02.11.2002
E.g. Jeff Immelt: 75% of admin, back room, finance digitalized in 3 years.
Source: BW (01.28.02) Everybodys Doin It! The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever
larger deals and moving ever higher up the value chain. The Economist/01.11.2003 BW Cover/02.2003 IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore.
They Include Chip Design, Basic Researcheven Financial Analysis. Can America Lose These Jobs and Still Prosper? 4. IS/ IT/ Web On the Bus or Off the Bus.
2.5G, 3G, 4G Windows Symbian Java Bluetooth Wi-Fi PCs-PDAs-Cellphones E-business vs. M-business
Etc. Outsiders view: (1) Billions are being spent, even in a down market. (2) NOBODY HAS A CLUE AS TO WHO THE WINNERSAND LOSERS WILL BE. (3) Yet you must play.
Now. Hard. Fast. 100 square feet Dells OptiPlex Facility Big Job: 6
to 8 hours. (80,000 per day) Parts Inventory: 100 square feet.
The Real News: X1,000,000 TowTruckNet.com This is the first meter of a 10-kilometer race. Eventually, all markets will come to resemble todays
foreign exchange market. Hamid Biglari, Head of Corporate Strategy, Citigroup, in GIGATRENDS, Wired 04.01 Impact No. 1/ Logistics & Wal*Mart Dell Amazon.com Autobytel.com
FedEx UPS Ryder Cisco Etc. Etc. Ad Infinitum. Distribution: $400. Wal*Mart: 13%. Autobytel:
Source: BW(05.13.2002) If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into
competitive advantage.Tom Stewart, Business 2.0 Supply-chain Optimization From: Design-chain
Optimization To: Source: Cadence Design Systems A Big Electronics Show Is All About Connections headline,
New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX NOKIA Connecting People NTT/DoCoMo/i-motion/remote control
for your life/If Tokyo and DoCoMo are the first capitals of the wireless Internet industry, Helsinki and Nokia have been the wellsprings of mobile telephonyFinland leads the world in both Internet connections and mobile phones per capita. Source: Howard Rheingold/Smart Mobs
m-On or Out of the Loop Managers in Finland always keep their phones on. Customers expect fast reactions. And if you cant reach a superior, you make many decisions yourselfmanagers who want to influence decisions of subordinates must keep their phones open. Risto Linturi, Finnish m-guru, in Howard Rheingolds Smart
Mobs SOS : Emergency Agencies Often Unable to Talk to Each Other headline, p1, USA Today/11.20.2002
Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800
notebook computers that are wireless. Physicians can walk around with a computer thats pre-programmed. If the physician wants, well go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002) All to All
Karl Marx Meets Adam Smith: Lessons from the Bush (1) Specialization-excellence. (Or death.) (2) Luck is irrelevant. (In a drought, drought specialists survive.) (3) Bigger is not necessarily better. (All hail the termites + bacteria!) (4) Efficiency matches effectiveness: no wasted motion, no
bureaucratic B.S., very low transaction costs. (Inet does this. C.f. Dell.) (5) Hyperinterdependence. (The power resides in the network: Self-organization is the rule. Inet redux. Viral marketing. Farm-out is the norm.) ?: Americans on the Web/03.2002 50,000,000 75,000,000
100,000,000 125,000,000 150,000,000 175,000,000 157,000,000* * +2M/mo. Source: Newsweek (03.25.2002)
WebWorld = Everything Web as a way to run your businesss innards Web as connector for your entire supply-demand chain Web as spiders 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 Life
Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entre, at any size, to Worlds Best at Everything as next door neighbor 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-free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever Instantly responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements
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, bottleneckedcommunication, 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 Read It Closely: We dont sell We
sell speed. insurance anymore. Peter Lewis, Progressive The New Infantry Battalion/ New York Times/12.01.2002 Pentagons Urgent Search for
Speed. 270 soldiers (1/3rd normal complement); 140 robotic off-road armored trucks. Every soldier is a sensor. Revolutionary capabilities. Find-to-hit: 45 minutes to 15 minutes in just one year. Theres no use trying, said Alice. One cant believe impossible things.
I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast. Lewis Carroll
Inet allows you to dream dreams you could never have dreamed before!
Dont rebuild. Reimagine. The New York Times Magazine on the future of HUMANAs Dreams. Emphesys: Put everything on the Internet. CEO Mike McCallister, charge to 200-person outside Inet unit: Imagine an ideal Web-based health insurance system and then create a product as close as possible to
that vision. Start with own employees: SmartSuite. Member employees: Plan their own coverage and shoulder more costs. Dell is model: Fully customized health for every individual. Marketing pitch for employers: Buy choice for employees through a single sourceHumana. Source: Fortune/05.27.2002
Supposejust supposethat the Web is a new world were just beginning to inhabit. Were like the earlier European settlers in the United States, living on the edge of the forest. We dont know whats there and we dont 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 doesnt hold here, and uncommon sense hasnt yet emerged. David Weinberger, Small Pieces Loosely Joined The e-conomy is one of re-intermediation, where new
technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change. Thomas Koulopoulos, Delphi Group
[ Words to Live By Hierarchy is an organization with its face toward the CEO and its ass toward the customer. Kjell Nordstrom and Jonas Ridderstrale, Funky Business]
Hyperlinks subvert hierarchy! The Cluetrain Manifesto Case: CRM
Anne Busquet/ American Express Not: Age of the Internet Age of Customer Control Is:
Amen! The Age of the Never Satisfied Customer Regis McKenna The Web enables total
transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead. Kjell Nordstrm and Jonas Ridderstrle, Funky Business
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 A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumersraising 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 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! UBIQUITY! Its the cars, not the tires, that squeal:
NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McDs, 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) FT: The aim [of CRM] is to make customers feel as they did in the preelectronic age when service was more personal.
No! No! No! Rebuttal: (1) Service sucked in the pre-electronic age. (2) NewGen believes in the screen! (So do I.) One Persons 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!!
-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.) M. Rogers:
CGE&Y (Paul Cole): Pleasant Systemic Opportunity. Better job of what we do today vs. Rethink overall enterprise strategy. Transaction vs.
Message CRM: Madness = 600 CRM vendors. ???: Do it all or do something. Past: over-invest in lowvalue 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.
Wells Fargo ($285B): Master of B&C 3M $900M since 99. . 1/3rd of chk acct customers on line. 5,400 branches: 4 of 5 who do product
research on line purchase at branch. Wire transfer, save 30%; 17% less calls. Material diff to bottom line. Source: BW Online (03.20.02) Here We Go Again: Except Its Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3rd; 3.3M; 50% lower attrition rate; 50% higher growth in balances than offline; more likely to cross-purchase; happier and
stay with the bank much longer. B of A: 4M of 15M ( way beyond the early adopters). Source: The Wall Street Journal/10.21.2002 The Cluetrain Manifesto Hyperlinks subvert
hierarchy! The Cluetrain Manifesto Corporate Resistance to It It all goes back to fear of losing control! The Cluetrain Manifesto
E-business is the final nail in the coffin for bureaucracy at GE. Jack Welch/ GE Annual Report 2000 [ Words to Live By
Hierarchy is an organization with its face toward the CEO and its ass toward the customer. Kjell Nordstrom and Jonas Ridderstrale, Funky Business] Richard Rosecrance, The Rise of the Virtual State:
Wealth and Power in the Coming Century Hong Kong: Prototypical Virtual State 83% Service 8% Mfg. Source: Richard Rosecrance,
The Rise of the Virtual State The new dependence on productive assets located within someone elses state represents an unprecedented trust in the integrity and peacefulness of strangers. In its pure form an ideal model toward which many states are tending the virtual state carries within it the possibility of an entirely
new system of world politics. Richard Rosecrance, The Rise of the Virtual State Imagine a world where a citizen could search the globe to assemble my government, the ultimate in customized, customer-centric services. Health care from the Netherlands,
business incorporation in Malaysia Don Tapscott The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions with few or no manufacturing
capabilities a company with a head but no body. Richard Rosecrance, The Rise of the Virtual State We own all the intellectual property, we farm out all the direct labor. Jim McDonnell, VP, IBM
Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on crown jewel handsets 5. Net: a wireless specialist that depends on services more than
manufacturing, on knowledge more than metal Source: BW/11.04.02 The Futility of Size [Regarding this issue] the new process of virtualization fully exerts itself. Virtualization is the recognition
that territorial size does not solve economic problems. Economic access must become the substitute for economic domain. Richard Rosecrance, The Rise of the Virtual State TP: Skill at creating, exploiting, and exiting
crucial alliances beats ownership of fixed assets. At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the
best education and training. Richard Rosecrance, The Rise of the Virtual State Whats the Common Denominator? The Dutch the British the Rothschilds Cargill Sumitomo the KGB the CIA Mossad
Enron Wal*Mart McKinsey FedEx UPS Mr. Speaker Henry Kissinger Executive secretaries the Corner Grocer Women-ingeneral? Masters of information acquisition, manipulation, dissemination, and utilization. Networkmeisters.
Agile. Temporary. Virtual is thy name. Motto: Applied information is power/wealth. III. NEW BUSINESS. NEW VALUE PROPOSITION.
5. The PSF Solution: 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. TP to NAPM:
You are the Rock Stars of the B2B Age! Message: You are Re-invention
Evangelists! Chicago November 1999: HRMAC support function / cost center / bureaucratic drag
or Are you Rock Stars of the Age of Talent Daddy, what do you do?
Sarah: Im a cost center. Daddy: DD$21M
Talent Department 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%++) When: Now! BMWs Designworks/USA: >50% from outside work
Bill of (SELECTIVE) Rights YOU HAVE THE RIGHT TO CHOOSE YOUR CLIENTS! (Wanna be-stay-get COOL Work With Cool Clients!) (YOU ARE YOUR CLIENT LIST.) (LIFE IS TOO SHORT TO WORK WITH JERKS.) (Mass marketers: TARGET INNOVATION. E.g.: African-Americans
Hispanics the Aging Population Greens Women) 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 Culture Change
Now! Lives in the Moment! Culture Change is Entirely in Your Hands! What Do I Do First?
One Minute Excellence!* *Thomas Watson C.I.O. to C.E.F.R.N.S.*
*Chief Evangelist For Really Neat Stuff G.M. = The Recruitment and Development of Top Talent. [Period!] V.C. = Bets on Talent.
Bets on Projects. [Period!] Dept. Head I = Sports G.M. Dept. Head II = V.C. 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! Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve become more than that.
We pay for ourselves, and we actually make money for the company. Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com) The PSF Problem
Professionalism = Arrogance = Pseudoscience. Hear no evil, see no evil, dont rat out your peers Docs, Teachers, Clergy (Law), Accts (Berardino) Everybodys Doin It!
The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain. The Economist/01.11.2003 6. The Heart of the Value
Added Revolution: PSFs Unbound/ The Solutions Imperative. Base Case: The Sameness Trap
Companies have defined so much best practice that they are now more or less identical. Jesper Kunde, Unique now ... or never While everything may
it is also increasingly the same. be better, Paul Goldberger on retail, The Sameness of Things, The New York Times
When McDonalds first started exporting its formula of quality, cleanliness and service, it was something of a novelty. These days, quality, cleanliness and service are a givenand people are becoming more interested in what they are eating. FT/12.21.2002
Nobody brags about going to McDonaldsSF professional. Subway > McDs (USA). We make over three new product announcements a day. Can you remember
them? Our customers cant! 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 Nordstrm and Jonas Ridderstrle, Funky Business Funky Business: To succeed we must stop being so goddamn normal. In a winner-takes-all world,
normal = nothing. When we did it right it was still pretty ordinary. Barry Gibbons on
Nightmare No. 1 This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats working in the real world and determine what the successes have in common. But what could the Four Seasons
and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Gameboy 14 years in a row)? Its like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. Theyre on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely
because he did something remarkable. And that remarkable thing is now takenso its no longer remarkable when you decide to do it. Seth Godin, Fast Company/02.2003 Customers will try low cost providers because the Majors have not
given them any clear reason not to. Leading Insurance Industry Analyst SWA > American + Continental + Delta + Northwest +
United + USAirways. Source: Boston Globe (12.22.2001) 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 its financial security, buying a car, paying for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group The Internet is the most effective profitkiller on earth it stimulates a TRUE FREE MARKET; and a real free market is the most dangerous of marketplaces for companies selling the SAME OLD STUFF.
To those with COURAGE, free markets are greatthey help kill off the deadwood competitors who dont have the courage to changemaking way for them to LEVERAGE their DRAMATIC DIFFERENCE into profitable growth.Doug Hall Everybodys Doin It!
The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain. The Economist/01.11.2003 The
Big Day! 09.11.2000: HP bids $18,000,000,000 for
PricewaterhouseCoopers consulting business! These days, building the best server isnt enough. Thats the price of entry. Ann Livermore, Hewlett-Packard
Systems Integrator of choice. Global Services: Gerstners IBM: $35B. Pledge/99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house
programs/products. (BW/12.01). You are headed for commodity hell if you dont have services. Lou Gerstner on IBMs coming revolution (1997)
Service-Systems Paradox: Cut & Grow Automate 75% of commodity service activities and/but Add value via people-intensive strategic/systems-integration activities (E.g.: Could Suns
service/sysint business be 60% of revenues?) (Hiring from PWC, etc.) AT&T: President David Dorman: Back to long distance but with bundles of lucrative corporate services for the likes of Merrill Lynch, MasterCard, Hyatt. Consumer: Dump 25M subscribers
(50%)hold on to high enders. Source: BW/05.20.2002 Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on crown jewel handsets 5. Net: a wireless specialist that
depends on services more than manufacturing, on knowledge more than metal Source: BW/11.04.02 We want to be the air traffic controllers of
electrons. Bob Nardelli, GE Power Systems Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the customers 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 Was: Big Iron Transformer Dudes
Division. Is: Air Traffic Controllers of Electrons. Was: Bunch of Guys Who
Make Circuit Breakers Division. Is: GE Industrial Systems. GEs 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 = Clients World. Source: Steve Kerr, VP, GE E.g. UTC/Otis + Carrier:
boxes to integrated building systems Units of Coolth Leased AC: Nardellis goal ($50B to $100B by 2005):
move Home Depot beyond selling goods to selling home services. He wants to capture home improvement dollars wherever and however they are spent. E.g.: house calls (At-Home Service: $10B by 05?) pros shops (Pro Set) home project management (Project Management System a deeper selling
relationship). Source: USA Today/06.14.2002 A little-known fact: Siemens is now the worlds largest application service provider* to the health business. Digitally stored X rays, recordkeeping, the cameras that guide surgeons in the operating
theaterall run on Siemens software Forbes/09.16.2002 *E.g.: Siemens is giving Health South an all-digital hospital of the future. 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 Flexible sourcing. Collections. Packaging.
Merchandising. Promotion. Systems & Site mgt. 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 its
financial security, buying a car, paying for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group Our mission is to go from being the worlds premier timesharewhich is a large idea in a small industryto being what we call the market makers for
global travel and leisure. We need to enable developers to be involved in more travel and leisure products, rather than just the timeshare side. Ken May, RCI (Source: Developments) 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)
Architecture is becoming a commodity. Winners will be Turnkey Facilities Management providers. SMPS Exec We are a real estate
facilities consulting organization, not just an interior design firm. Jean Bellas, founder, SPACE (from SMPS Marketer) Omnicom: 57%
(of $6B) from marketing services Who was the number one employer of architecture school
grads in the U.S. last year? Eat Or Be Eaten. Message: HP. Sun. IBM. GE/PS. GE/IS. (GE/AE. GE/MD.)
UTC. Farmers. Delphi. UPS/ FedEx/ Ryder. Springs. Omnicom. IDEO. Accenture. Equity Office Properties. RCI. Etc. Etc. Words: Partners Value Added Intellectual-capital Added Consultative-skills Added
Implementation Added Model PSF Outsourcing (??) Acquisitions-led (Omnicom et al.) Experiences- (Solutions-) (Customer Success-) driven. (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3)
V.A. via PSFs Unbound/ Solutions/ Customer Success. Core Logic: Model2002/3/4/5/?? Dell* + IBM** =
Magic *Cut (ALL) the bullshit **Add (LOTSA) soft/integrative/experiences value The Seagate Exception. (Paradox? Possibility?) 7. The
Solutions25.* *NO MORE SILOS. NO MORE STOVEPIPES. (DAMN IT.) 1. Its 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. The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we
drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational Limits. 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 dont talk to each other. Boston Globe (09.30.2001) Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause 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 P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say Over Research Advertising
Age (03.25.2002) 12. All functions contribute equallyIS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc. 13. Project Management can come from any function. 14. WE ARE ALL IN SALES. PERIOD. 15. We all invest in wiring the customer organization. 16. WE ALL LIVE THE BRAND. (Brand = Solutions.
That MAKE MONEY FOR OUR CUSTOMERPARTNER.) 17. We use the word PARTNER until we all want to barf! 18. We NEVER BLAME other parts of our organization for screw-ups. 19. WE AIM TO REINVENT THIS INDUSTRY! 20. We hate the word-idea COMMODITY. 21. We believe in High tech, High touch.
22. We are DREAMERS. 23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.) 24. If we play the SOLUTIONS GAME brilliantly, no one can touch us! 25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE All Hands affair! Q: Is that all there is?
A: Quite possibly. Roches New Scientific MethodFast Company. And? X-Functional Teams (NO STOVEPIPES!). Fail fast. The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.
Duh???*: Weve come up with a solution. Weve begun to create a form of communications that is much better than we had before, and thats allowed us to gather better data. Weve finally realized that we have an interplay with other hospitals and with pre-hospital.Dr. Ben Honigman, ER, U. Colorado Hospital, on diverts (Denver
Post/05.05.02) *Internet + Data + Open data exchange + Barrier busting Innovation & Speeds New Basics* 1. XFTs are the culture. 2. Project-centric. 3. Open talent market. 4. Cause-based projects. 5. Ubiquitous open systems
ISat home & throughout supply chain. Web based. 6. F-L-A-T. 7. EVP (S.O.U.B), etc. *Innovation, Speed, CRM, Experience/ Solution demand this XF25: WOW Projects (100%). Physical Co-location (geologists & geophysicists). Strategic firings of turf
kings (top performer goes). Bonuses (big). Deep dipping. Job rotation (musical chairs at the top). EVP/SOUB. Lots of kids (Instant Messaging). Early Proj Mgt experience. Take techies on sales calls. Symbolic stuff (black berets). Supply Chain 2000:
When Joe Employee at Company X launches his browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs 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 dont
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) KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.
WHICH REQUIRES: Total Enterprise Responsiveness beyond functional walls. 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 (8.2001) IV. NEW BUSINESS. NEW
BRAND. 8. A World of Scintillating/ Awesome/ WOW Experiences. 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 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 [Starbucks] Fix Is on We have identified a third
place. And I really believe that sets us apart. The third place is that place thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager Club Med
is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new me. Source: Jean-Marie Dru, Disruption Guinness as a brand
is all about community. Its about bringing people together and sharing stories.Ralph Ardill, Imagination, in re Guinness Storehouse WHAT CAN BROWN DO FOR YOU? From Service to Cause
7X. 730A800P. F12A.* *Plus: WOW Department Kill a Stupid Rule contests, etc. 2001R: 34%; P: 29%; 90-00: 2,048%. Commerce Bank/NJ ($10B). Source: FC05.02. 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):
$10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00 I see us as being in
the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation. Bob Lutz:
Source: NYT 10.19.01 Experience It! Living Room, To Go: Cars of the future will be sanctuaries, with mood lighting, aroma therapy and massage seats. For long drives: movies and
popcorn headline, Newsweek/11.25.2002 Lexus sells its cars as containers for our sound systems. Its marvelous.Sidney Harman/ Harman International
Its All About EXPERIENCES: Trapper to Wildlife Damage-control Professional Trapper: <$20 per beaver pelt. WDCP: $150/problem beaver; $750-$1,000 for flood-control piping so that beavers can stay. Source: WSJ/05.21.2002
Car designers need to create a story. Every car provides an opportunity to create an adventure. The Prowler makes you smile. Why? Because its 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 Its a question of how to marshal our resources. Id like us to be really great in four or five areas. We have to make some hard choices. weve got to get a
story about science thats completely understandable. To get The big challenge is, money in wholesale amounts, youve got to sell concepts. Larry Small, Smithsonian Institution
LAN Installation Co. to Geek Squad (2% to 30%/Minn.) Hire a theater director, as a consultant or FTE!
First Step (?!): Experience Cirque du Soleil DO YOU MEASURE UP?* *If not, why not?
Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of physical products to choose between. Jesper Kunde, A Unique Moment [on the
excellence of Nokia, Nike, Lego, Virgin et al.] Extraction & Goods: Male dominance Services & Experiences: Female dominance Women dont buy
They join them. brands. EVEolution The Experience Ladder
Experiences Services Goods Raw Materials Ladder Position Measure
Solutions Success (Experiences) Services Satisfaction
Goods Six-sigma When Pete Rozelle ran the league, it was a football business and a good one. Now its truly
an entertainment business. Paul Much, Investment Advisor 9. Experiences+: Embracing the Dream Business.
DREAM: A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be. Gian Luigi Longinotti-Buitoni
Common Products Dream Products Maxwell House BVD Payless Hyundai
Suzuki Atlantic City New Jersey Carter Conners CNN Starbucks Victorias Secret
Ferragamo Ferrari Harley-Davidson Acapulco California Kennedy Pele Millionaire
Source: Gian Luigi Longinotti-Buitoni Building the Creative Organization Choose a creator: The cultural leader who gives the company an aesthetic point of view. Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion. Prepare vertically: Develop a rigorous understanding
of the product and the client. Develop horizontally: Promote curiosity in unrelated disciplines. Lead emotionally: Engender passionate dedication through vision and freedom. Build for the long haul: Creativity requires a lifetime commitment. Source: Gian Luigi Longinotti-Buitoni
Emotional Design that Interprets Dreams Zero defects: Only the starting point. Love at first sight. Design for the five senses. Develop to expand the Main Dream. Design so as to seduce through the peripheral senses.
Source: Gian Luigi Longinotti-Buitoni The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product.
Dreamketing: Build the brand around the main dream. Dreamketing: Build the buzz, the hype, the cult. Source: Gian Luigi Longinotti-Buitoni Constantly Magnify Perceived Value Maximize your value-added by fulfilling the dreams of your clients.
Only invest in what is valuable for your client. Dont let the short-term results weaken the long-term value of your brand. Balance rigorous control of the financial endeavor with the emotional management of your brand. Build a financial structure that allows risk-taking: NO RISKSNO DREAMS. Establish long-term price power in order to avoid the trap of the commodity product.
Source: Gian Luigi Longinotti-Buitoni Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of physical products to choose between.
Jesper Kunde, Unique now ... or never [on the excellence of Nokia, Nike, Lego, Virgin et al.] 10. The Soul of Experiences: [Mostly Ignored] Design Rules!
Design Myths. 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 Americas 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] Design2002 LISTERENEs PocketPaks WESTINs Heavenly
Westins Heavenly Bed Designs place in the universe. And Tomorrow
Fifteen years ago companies competed on price. Now its Tomorrow its design. quality. Robert Hayes
All Equal Except At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only thing that differentiates one product from another in the
marketplace. features. Norio Ohga Design is treated like a religion at BMW.
Fortune The new Beetle fails at most categories. The only thing it doesnt fail in is drop-dead charm. Jerry Hirshberg, Nissan Design International
Auto Designers at Milan Fashion Shows! Welcome to the world of the celebrity car designer, a new breed increasingly responsible for the fortunes of the worlds big car companies. We live in a designer world, and the car designers are at its heart. The
Economist/12.21.2002 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 The good 10 percent of American product design comes out of big-idea companies that
dont believe in talking to the customer. They're run by passionate maniacs who make everybodys life miserable until they get what they want. Bran Ferren, Applied Minds/Wired 1-2001 We dont have a good language to talk about this kind of thing. In most peoples
vocabularies, design means veneer. But to me, nothing could be further from the Design is the fundamental soul meaning of design. of a man-made creation.
Steve Jobs Check Out the Language: Tomorrow its design Design is the only thing Design is religion ... Drop-dead charm Object of desire
Passionate maniacs Fundamental soul Bottom Line. Design is WHAT & WHY I LOVE. LOVE.
I LOVE my ZYLISS Garlic Peeler! All Time
No.1 (TP) Ziplocs Design is WHY I GET MAD. MAD.
Wanted: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward! Design is never
neutral. DESIGN is the principal difference between love and hate! Hypothesis: 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 doesnt. Furthermore, its another one of those things that damn few companies put consistently on the front burner. Message (?????): Men cannot design for womens needs.
Perhaps the macho look can be interesting if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuitionits female. Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
Step No. 1: NOTEBOOK POWER! [Start recording the awesome & the awful] User
STOP BLAMING YOURSELF! (Don Norman/Design of Everyday Things) Sometimes I have
episodes of wild fury in rental cars. Its not road rage. Its more like design rage. Susan Casey, www.ecompany.com Design Case I Thomas Hine: The Total
Package: The Secret History and Hidden Meanings of Boxes, Bottles, Cans, and Other Persuasive Containers The most fundamental difference between a traditional market and the places through which you push your cart is that in modern retailing
all the selling is done without people. It replaces people with packages. Thomas Hine/The Total Package Packages have personality. They create confidence and trust. They spark fantasies. They move the goods!
Thomas Hine/The Total Package Oatmeal/1870: horses and a few stray Scots Oatmeal/1890/Quaker: a delicacy for the epicure, a nutritious dainty for thr invalid, a delight to the children Difference: Packaging!
Thomas Hine/The Total Package During the thirty minutes you spend on an average trip to the supermarket, about thirty thousand different products vie to win your attention and ultimately to make you believe in their promise. When the door opens, you enter an arena where your emotions are in playand a walk down the
aisles is an exercise in self-definition. Few experiences in life offer the visual intensity of a Safeway, a Krogers. Thomas Hine/The Total Package Research: customers aware of 11,000 packages in 1,800 seconds walking the aisles.
Opportunity = 1/6 th second! Source: Thomas Hine/The Total Package
Packaging strives at once to offer excitement and reassurance. It promises something newer and better, but not necessarily different. When we talk about a tourist destination, or even a presidential contender, being packaged, thats not really a metaphor. The same projection of intensified ordinariness, the same combination of titillation and reassurance, are used for
laundry detergents, theme parks and candidates alike.Thomas Hine/The Total Package One, consumers really do not distinguish between a product and its package. Two, consumers relate emotionally not to the facts (the realities) of the product/packages they are
involved with, but rather to their perceived realities. Walter Stern in Thomas Hine/The Total Package Whats important to recognize is that fast-food and hotel chains are not like packages, but that they are packagespackaged places
and experiences. Thomas Hine/The Total Package I am a frustrated artist at heart so I am constantly sketching designs for our new hotels. Design is my passion. I was recently in the new Prada store in Aspen and I loved the design so much that I tracked down the Milanbased designer, Roberto Baciocchi, to
do our Milan hotel. Thats typical of how we do business around here. Barry Sternlicht, CEO, Starwood 11. Design+ = Beautiful Systems. Fred S.s mediocre
thesis. Herb K.s napkin. Great design = One-page business plan (Jim Horan) There Are Lawyers and Then There Are
Lawyers: John De Laney/ICM ANYTHING TRULY IMPORTANT CAN BE BOILED DOWN TO RD 1/3 PAGE.* (*NO SHIT.)
K.I.S.S.: Gordon Bell (VAX 500/50. daddy): Chas. Wang (CA): Behind schedule?
Cut least productive 25%. have. Must hate. / Must design. Must undesign. Systems: Must
Mgt. Team includes EVP (S.O.U.B.) Executive Vice President, Stomping Out Unnecessary Bullshit Ninety percent of what
we call management consists of making it difficult for people to get things done. P.D. 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.
12. It all adds up to THE BRAND. The Heart of Branding
WHO ARE WE? Most companies tend to equate branding with the companys marketing. Design a new marketing campaign and, voil, youre 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, Unique now ... or never
WHATS OUR STORY? 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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others. that their products are less important than their stories.
Rolf Jensen, Copenhagen Institute for Future Studies Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. Brands are not nouns but verbs. Source: Jean-Marie Dru, Disruption
ALL BUSINESS MODELS ARE IN FACT BRAND STATEMENTS! Message: DO THE
HOUSEKEEPERS & CLERKS BUY IT? [ARE YOU V-E-R-Y SURE?] EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
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!) 3
RD Law: DRAMATIC DIFFERENCE (Execs Dont 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
They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But whats the point, the message, the story line, the Big Idea that makes it all hang together? Exec, major consumer goods company
Instead of having the brand be seen as goodbetter-best for the same type of clothing, theyve got to give it more uniqueness. David Martin, Interbrand US, on The Gaps problems You do not merely want to
be the best of the best. You want to be considered the only ones who do what you do. Jerry Garcia A great company is defined by the
fact that it is not compared to its peers. Phil Purcell, Morgan Stanley Brand = You Must Care! Success means never letting the competition
define you. Instead you have to define yourself based on a point of view you care deeply about. Tom Chappell, Toms of Maine Were not going to be driven by where we think a funding agency would like to see us go.
Were going to build our case and then find an organization that agrees with us. Stephen Spongberg, Polly Hill Arboretum WHY DOES IT MATTER TO THE CLIENT?
EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ? 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
Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency & freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding cant be faked. REAL Branding is
a systemic, 24/7, all departments, all hands affair. Rules of Radical Marketing Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA) Branding: Is-Is Not Table TNT is not: TNT is: TNT is not:
Juvenile Contemporary Mindless Meaningful
Elitist Predictable Suspenseful Dull Frivolous
Exciting Superficial Powerful Old-fashioned
Slow Self-important Salt is salt is salt. Right? Not when it blue box comes in a with a
picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf. Tom Asaker, Humanfactor Marketing
What Can [Cant] Be Branded? Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, Gang, if they
can do it, we can do it. Barry Gibbons V. NEW BUSINESS. NEW WORK. 13. Toward Work that Matters: The
WOW Project. Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec
TP: Your signature is not I work for Dow. Its, I accomplished [INCREDIBLY COOL PROJECT] while I was associated with Dow.* *Terms: Signature. Portfolio. Projects. Braggables. Language matters! Wow!
BHAG! Takes your breath away! Lets make a dent in the universe. Steve Jobs
Your Current Project? 1. Another days work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)
Measures WOW! Beauty! Raving Fans! Impact! Langua
ge matter We shape our buildings. Thereafter they shape us.WSC We shape our words. Thereafter
they shape us.TJP Astonish me! / S.D. Build something great! / H.Y. Immortal! / D.O. No
damn J.A.M.S. Motto: NEW WORK NEW SPACES The fact is, a person is so far
formed by his surroundings, that his state of harmony depends entirely on his harmony with his surroundings. Christopher Alexander, A Timeless Way of Building What the dot-com boom made vivid was that a significant portion
of the workforce was disenchanted with the conventional office landscape and was looking for a viable alternative to the cubicle. Lise Anne Couture, designer/Metropolis/Reimagining Work/11.2002 I think its a chicken and egg proposition: do furniture
manufacturers make cubes because of the demand, or is the demand there because its artificially created by the absence of any real alternatives? Lise Anne Couture, designer/Metropolis/Reimagining Work/11.2002 Why Not?
My ideal office wouldnt have a chair. You would do two things there: stand up or lie down. These are the bodys most natural positions. Niels Diffrient, designer and F500 consultant/Metropolis/Reimagining Work/11.2002
Legacy ! TP: Your signature is not I work for Dow. Its, I accomplished [INCREDIBLY COOL PROJECT] while I
was associated with Dow.* *Terms: Signature. Portfolio. Projects. Braggables. Herman Edwards: I picked up one of those Jets books and I told them, What you do as a football team is your legacy. When youre 80 years old, what youve done will be in this book and no one can take that away from you. Your grandkids,
your kids after that, they will know what you did. Its about leaving your name in stone. Source: The New York Times (12.31.02) COL Richard Hallock (to incoming SECDEF James Schlesinger): You must understand that if you want to leave a legacy it is vital for you to make a quick decision about what you want the legacy to be
because after several months you become so caught up in the business of the Pentagon, so overwhelmed, that it will be too late. Pick a few projects and put the full weight of the office behind them. Guide the projects. Nurture them. Know from the very beginning that this will be your legacy. Force them through the bureaucracy. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
14. WOW Projects for the Powerless: A Surefire Recipe. Topic: Boss- free
Implementation of STM /Stuff That MATTERS! Worlds Biggest Waste Selling Up THE IDEA:
Model F4 Find a Fellow Freak Faraway F2F!/K2K!/ [email protected]/R.F!A.* *Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
And K2KK* S2SS** *Kook to Kooky Kustomer **Skunk to Scintillating Supplier Find something small
that you can turn around. If youre on a 9game losing streak, you need to start with one great inning.Rudy Culture of Prototyping Effective prototyping may be
the most valuable core competence an innovative organization can hope to have. Michael Schrage BOTTOM LINE The Enemy!
Joe J. Jones 1942 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM! 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
Nobody gives you power. You just take it.Roseanne If anyone can do it, John [Rebus], Ive always had confidence in your sheer pig-headedness and
inability to listen to your senior officers. you can. from Ian Rankin, The Falls Kurt Carlson to young Marilyn Carlson: If you dont
like Sunday School, change it! (She did.) Obeying the rules is obeying their rules. [Women] can never be powerful as long as they try to be in charge in the same way men take charge.
Harriet Rubin, The Princessa: Machiavelli for Women Dont just express yourself. Invent yourself. And dont restrict yourself to off-the-shelf models.Henry Louis Gates, Jr., commencement address, Hamilton College
Characteristics of the Also rans* Minimize risk Respect the chain of command Support the boss Make budget *Fortune, article on Most Admired Global Corporations
To Be somebody or to Do something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Epitaphs from
Hell Joe J. Jones 1942 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM!
Joe J. Jones 1942 2002 HE MADE BUDGET! (AGAIN & AGAIN.) Joe J. Jones 1942 2002 HIS NET WORTH WAS $11,000,000.
Joe J. Jones 1942 2002 HE HIT QUARTERLY EARNINGS TARGETS 44 TIMES IN A ROW. WHO WILL GO TO STOCKHOLM? (Damn it.)
Very simple. I never edited books I didnt love. J.O., on her consistent success as an editor
If you are not prepared to be fired over your beliefs you are working on the wrong project - TP If your boss demands loyalty, give him
integrity. But if he demands integrity, give him loyalty. BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) IMPLEMENTATION SECRETS. Credibility. Demos & End Runs & Being There. Mr.
OSHA Maine. Find three COs. Seek determined alumnae. Go to Bangkok. (Forget: How do I erase the old? Supplant rather than change the regnant heirarchs.) Its politics,
stupid! (Play or sit on the sidelines.) White-wagon kill BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) 15. Bringing WOW
Work to Fruition: The Sales 25. The Sales25: Great Salespeople 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customers
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 customers org. (Relationships at all levels & functions.)
7. Wire the home teams org. and vendors orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.) Its politics, stupid! (Play or sit on the sidelines.)
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 moneyheres exactly how.) (IS THIS A PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)
10. Will involve anybodyincluding mortal enemiesif 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. (Its 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 vendors 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 thats sometimes better than a lousy win.)
17. Think those who regularly say Its 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 upstartsthe real enemy. 20. Seek several cool customerswholl 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 ENOTES.) (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! 16. Boss Work: Demos, Heroes, Stories Or: Starting
a WOW Projects Epidemic. Ordering Systemic Change is a Stupid Waste of Time! Premise:
Demos! Heroes! Stories! Lead Frogs Leapfrog Group:
Demo = Story A key perhaps the key to leadership is the effective communication of a story. Howard Gardner, Leading Minds: An Anatomy of Leadership
MB S A!* *Managing By Story-ing Around/David Armstrong Culture of Prototyping
Effective prototyping may be the most valuable core competence an innovative organization can hope to have. Michael Schrage
Think about It!? Innovation = Reaction to the Prototype Michael Schrage You cant 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 He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. /
Col. John Boyd Success is the ability to go from failure to failure without losing your enthusiasm. Winston Churchill (as quoted by John Peterman)
Some people look for things that went wrong and I look for things that went right and try to build on them. try to fix them.
Bob Stone/ Mr.Rego/ Lessons from an Uncivil Servant Find something small that you can turn around. If youre on a 9game losing streak, you need to start with one great inning.Rudy
REAL Org Change: Demos & Models (Model Installations, ReGo Labs)/ Heroes (mostly extant: burned to reinvent govt)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors/ Support Groups/ End RunsPull Strategy (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field
Real People Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loopsact before the bad guys can react) C.f., Bob Stone, Lessons from an Uncivil Servant VI. NEW BUSINESS. NEW YOU. 17. Re-inventing the
Individual: Brand You/ You Inc./ Free Agent Nation (Or Else.) If there is nothing very special about your work, no matter how hard you apply yourself, you
wont get noticed, and that increasingly means you wont get paid much either. Michael Goldhaber, Wired What strategic motto will dominate this transition from nation-state to marketstate? If the slogan that animated the liberal, parliamentary nation-states was make the world safe for democracy, what
will the forthcoming motto be? Perhaps making the world available, which is to say creating new worlds of choice and protecting the autonomy of persons to choose. Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History better material welfare vs. maximize
the opportunity of its people Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History In a global economy, the government cannot give anybody a guaranteed success
story, but you can give people the tools to make the most of their own lives. WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History New World of Work < 1 in 10 F500 #1: Manpower Inc. Freelancers/I.C.: 16M-25M
Temps: 3M (incl. CEOs & lawyers) Microbusinesses: 12M-27M Total: 31M-55M Source: Daniel Pink, Free Agent Nation Minimum New Work SurvivalSkillsKit2002 Mastery Rolodex Obsession (vert. to horiz. loyalty)
Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing Marketing Passion for Renewal
Sams Secret #1! Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. loyalty) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv
Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing Marketing Passion for Renewal My ancestors were printers in Amsterdam from 1510 or so until 1750, and
during that entire time they didnt 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) 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 dont
businesspeople do it? Edward Jones Training Machine* 146 hours/employee/year New hires: 4X avg. 3.8% of payroll * #1, The 100 Best Companies To Work For/Fortune/01.2003
R.D.A. Rate: 15%?, 25%? Therefore: Formal Investment Strategy/R.I.P. Invent. Reinvent. Repeat. Source: HP banner ad
You are the storyteller of your own life, and you can create your own legend or not. Isabel Allende PRECEDENT! No prudent man dared to be too
certain of exactly who he was. Everyone had to be prepared to become someone else. To be ready for such perilous transmigrations was to become an American.Daniel Boorstin Personal Brand Equity Evaluation I am known for [2 to 3 things]; next year at this time Ill
also be known for [1 more thing]. My current Project is challenging me New things Ive learned in the last 90 days include My public recognition program consists of Additions to my Rolodex in the last 90 days include My resume is discernibly different from last years at this time
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?
youll 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 T.T.D./Assignment Construct a 1/8-page or
1/4-page ad for Brand You for the Yellow Pages They Get it?! stone mason electrician plumber
tiler cabinet maker contractor blacksmith well driller blaster sheep shearer etc.
When was the last time you asked, What do I want to be? Sara Ann Friedman, Work Matters 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 I am an American, Chicago born, and go at things as I have
taught myself, free-style, and will make the record in my own way. Saul Bellow, The Adventures of Augie March I dont think theres anything worse than being
ordinary. American Beauty Well-behaved women rarely make history. Anita Borg, Institute for Women and Technology
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 Thriving in 24/7 (Sally Helgesen) START AT THE CORE. Nimbleness only possible if we locate our inner voice, take regular inventory of where we are. LEARN TO ZIGZAG. Think gigs. Think lifelong
learning. Forget old loyalty. Work on optimism. CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business. WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of looking people up. THE I work for a
company called Me STREET JOURNAL Adventures in Capitalism THE rise up and flee your cubicle STREET JOURNAL Adventures in Capitalism
Bill Parcells World/ Brand You World! BLAME NOBODY! EXPECT NOTHING! DO SOMETHING! NY Post (9/99)
SARA HOROWITZ, Founder, Working Today & Portable Benefits Network Source: Esquire/12.2002 Managing Benefits: Let Workers Do It Source: Headline, Money & Medicine, New
York Times (12.06.00); cited are specialist companies such as eBenX and Vivius of Minneapolis Systems supporting one-toone employee relationships will add competitive advantage. Employees expect far more access and control over their own
information. Source: IHRIM.link (2-3.2001) Human resource management (HRM) systems will begin to look more like customer relationship management (CRM) systems where we must know as much about our people (existing and future) as we do about our customers.
Applications in the future will be much more personalizable. Every user will have a customized way of working with their information. There will be more of a self-learning and intuitive model than we have today. Source: IHRIM Journal (12.2000) 18. Boss Job One:
The Talent Obsession. When land was the scarce resource, nations battled over it. The same is happening now for talented people. Stan Davis & Christopher Meyer, futureWEALTH
Sellers Market: Tomorrows Headline* Molecular biologists are up 3 points, economists down 1/4, in moderate trading *futureWEALTH, Stan Davis and Christopher Meyer
Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute Brand = Talent.*
*Duh. Talent! Tina Brown: The first thing to do is to hire enough talent that a critical mass of excitement starts to
grow. Source: Business2.0/12.2002-01.2003 The Talent Ten 1. Obsession P.O.T.* = All Consuming
*Pursuit of Talent Model 25/8/53 Sports Franchise GM* *48 = $500M
In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.Ed
Michaels 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
PARCs Bob Taylor: Connoisseur of Talent Les Wexner: From sweaters to people! Visibly energetic/ Passionate/ Enthusiastic about
everything. Engaging/ Inspires others. (Inspires the interviewer!) Loves messes & pressure. Impatient/ Action fanatic. A finisher. Exhibits: Fat WOW Project Portfolio. (Loves to talk about her work.) Smart.
Curious/ Eclectic interests/ A little (or more) weird. Well-developed sense of humor/ Fun to be around. ****** No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: Did you visibly grow while working with X? / How has the department/team grown on a world-class scale during Xs tenure?) 2. Greatness
Only The Best! From 1, 2 or youre out [JW] to Best Talent in each industry segment to build best proprietary
intangibles [EM] Source: Ed Michaels, War for Talent best person in the world Arthur Blank Differentiation is all about being extreme, rewarding the best and
weeding out the ineffective. You build strong teams by treating individuals differently. Just look at the way baseball teams pay 20game winning pitchers and 40-plus homerun hitters.Jack Welch 3. Performance Up or out!
We believe companies can increase their market cap 50 percent in 3 years. Steve changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased
Macadam at Georgia-Pacific profitability from $25 million to $80 million in 2 years. Ed Michaels, War for Talent Message: Some people are
better than other people. Some people are a helluva lot better than other people. $1.00 for competence.
$249.00 for attitude/ honesty. Bonus/TP: 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)
5. Youth Grovel Before the Young! Why focus on these late teens and twentysomethings? 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]
8 Minutes* Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then theres oya yubi sedai, the thumb generation 6. Diversity Mess Rules!
Where do good new ideas come from? Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.
Nicholas Negroponte Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mlange, the adulterated, the blemished, the rough, the black-and-blue, the mixand-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 CM Prof Richard Florida on Creative Capital: You cannot get a technologically innovative place unless its
open to weirdness, eccentricity and difference. Source: New York Times/06.01.2002 Duh! We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle
around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood its in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. Thats what Super Saver is. All the signage is in both languages. Theres a 100 percent Spanish-speaking staff in the store.Larry Johnston, CEO, Albertsons Expose yourself to the best
things humans have done and then try to bring those things into what you are doing. Steve Jobs, on the eclectic nature of the teams he concocts; people of extraordinary tastes with intriguing backgrounds
Capitalism and the conditions for creating wealth have changed in ways that play to the strengths of hybrid individuals, organizations and nations. And those that wish to profit from changing economic conditions must view hybridity as their first and best option. This bold claim warrants an explanation. The ability to apply knowledge to new situations is the most valued currency in todays economy. Highly creative people are misfits on some level. They tend to question
accepted views and consider contradictory ones. This appreciation defines the mongrel mentality. Strangers instinctively question things that natives take for granted. Many things strike them as odd or stupid. G. Pascal Zachary, The Global Me 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 ones place! Guys want to put everybody
in their hierarchical place. Like, should I have more respect for you, or are you somebody thats south of me? Paul Biondi, Mercer Consultants [from Its Not Business, Its Personal, Ronna Lichtenberg] Womens 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, Americas Competitive Secret On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twentyfirst-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 American women possess leadership abilities that are particularly effective in todays organizations, yet their abilities remain undervalued and underutilized.
In the future, what will distinguish one organization and one country from another will be its use of human resources. Today human resource utilization is not only a matter of social justice but a bottom-line issue. Judy Rosener, Americas 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 days events?
Who is better at keeping in touch with others? Source: Selling Is a Womans 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 Thank you
17 Men: 8 4 Women: 19 Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership Team In a lot of countries of the world, it would be very difficult for a woman to
be a good CEO. I have a responsibility to do the best we can for shareholders. * ** *Source: New York Times/05.05.02 **Wouldnt you love to watch him tell that face-to-face to Margaret Thatcher or Carly Fiorina? (I would.) Okay, you think Ive gone tooooo far.
DO ANY OF YOU SUFFER FROM TOO MUCH TALENT? How about this: 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 Its time for U.S. organizations to act. No other country in the world has a comparable supply of professional women waiting
to be called into action. This is Americas competitive secret. Judy B. Rosener, Americas Competitive Secret Opportunity! U.S. M.Mgt. 41% T.Mgt.
4% Peak Partic. Age 45 % Coll. Stud. 52% G.B. E.U. Ja. 29% 18% 6% 3% 2%
<1% 22 27 19 50% 48% 26% Source: Judy Rosener, Americas Competitive Secret Its 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) M-F GPAs: All: 2.92M vs. 3.07F; Arts: 3.08M, 3.13F; Bus: 2.79M, 2.96F; Science/Math: 2.98M, 3.18F; Eng/CompSci: 2.96M, 3.17F. % Professional Degrees: F 77: 19%; F 94: 41% (45% Ph.D.s)
Boys are trained in a way that will make them irrelevant. Phil Slater Read This! Winning the Talent War for Women: Sometimes It
Takes a Revolution Douglas McCracken, HBR [11-12/2000] Deloitte was doing a great job of hiring highperforming 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 werent leaving to raise families; they
had weighed their options in Deloittes maledominated 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 wouldnt put her on that kind of company because its 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] Goldsmith College research (UK): Gender
stereotypes re-enforced. Men who extoll successes rewarded, women not. Men who face interviewer head on upgraded; women who look at floor or use sidelong glances do better. Women who nod repeatedly do better, not men. Men who give long answers score well, women who give short answers do well. (College grads seeking jobs; HR interviewers2 M, 2F.)
Source: The Observer/ London/ 01.12.2003 Would Congress [the Boardroom] be a different place if half the members were women? From Sex and Power, Susan Estrich Norwegian Law: Boards must have
at least 40% women. 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
enough weird people in Are there the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01) A great idea always
comes from one persons mind, someone who is, by definition, local. If you place 10 people in Brussels to conceive a European [ad/marketing] campaign, youll get nothing. Source: Jean-Marie Dru, Disruption Deviance tells
the story of every mass market ever created. What Deviants, Inc. starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there way
out there. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) The A students work for the B students. The C students run the business. The D students dedicate the buildings. Assertion to Kinkos founder
Paul Orfalea from his Mom (Fortune/05.13.02) Most good ideas are born out of a little sketch. [They] probably dont occur when everybody is sitting around a table, but rather when youre having something to eat or having a talk in a
bar.Adrian Caddy, Imagination 9. Opportunity Make It an Adventure! H.R. to H.E.D. ???
Human Enablement Department Talent Department People Department Center for Talent Excellence
Seriously Cool People Who Recruit & Develop Seriously Cool People Etc. Firms will not manage the careers of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and
thus be in charge of his or her own career. Tim Hall et al., The New Protean Career Contract 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 Whats your companys 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
The Top 5 Revelations Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on peoples dreams they are volunteers. Pump talent in at all levels, from all
conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent 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, mostlycaveat: they dont engage unless theyre 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-teachersleaders) had never dreamed existedand 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!
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.
ADDENDA: Tom Peters The Talent50 The Talent50 1. People first!
2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added. 4. Talent excellence in every part of the organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is cool.
The Talent50 8. Re-name HR. (Talent Department, Center of Talent Excellence) 9. Theres an HR Strategy 10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a world class Leadership Development
Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The Top100, and every units Top10, are consciously managed. The Talent50 15. People/Talent Reviews are the FIRST reviews. 16. HR Strategy = Business Strategy.
17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21. 20. Pursue the Best! 21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay!
The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% business people. 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect!
31. INTEGRITY! 32. Treat the Whole Individual. The Talent50 33. Places of grace. 34. MBWA: The Rudy Rule. 35. Thank You! 36. Promote for people skills. (ALL ELSE IS SECONDARY.)
37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring. The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors.
43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses win people over. 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm!
The Talent50 50. Talent = Brand. VII. NEW BUSINESS: (NEW) BRAND
INSIDE RULES Message 2002 BI > BO Brand Inside Rules!
I came to see in my time at IBM that culture isnt just one aspect of the gameit is the game. Lou Gerstner, Who Says Elephants Cant Dance?
Brand Inside Rules! If I could have chosen not to tackle the IBM culture head-on, I probably wouldnt have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is
very, very hard. Lou Gerstner, Who Says Elephants Cant Dance? 19. THINK WEIRD the HVA/ High Value Added Bedrock. We are crazy. We should do
something when people say it is If people say something is good, it means someone else is already doing it. crazy. Hajime Mitarai, Canon
The Cortez Strategy! The High Standard Deviation Enterprise. THINK WEIRD:
Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: Futuredefining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. Adrian Slywotzky, Mercer Consultants If you worship at the
throne of the voice of the customer, youll get only incremental advances. Joseph Morone, President, Bentley College These days, you cant succeed as a company if youre consumer led
because in a world so full of so much constant change, consumers cant anticipate the next big thing. Companies should be idealed and consumerinformed. Doug Atkin, partner, Merkley Newman Harty The future has already happened. Its
just not evenly distributed. Adrian Slywotzky Generally, disruptive technologies underperform established established products in mainstream markets. But they have other features that a few fringe
(and generally new) customers value. Clayton Christensen, The Innovators Dilemma 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 I made a note. Im going after [PIONEER CO.], not the two establishment firms who were formerly at the top of my 2001 target list. We need a jolt.
Things are going too well. Sales Exec, high-tech superstar ! W.I.W? 20 of 26 7 of top 10*
*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 (The billiondollar problem.) categories. Source: Advertising Age 01.21.2002/BofA Securities
Primary Obstacles to Marketing-driven Change 1. Fear of cannibalism. 2. Excessive cult of the consumer/ customer driven/ slavery to demographics, market research and focus groups. 3.Creating sustainable
advantage. Source: John-Marie Dru, Disruption Account planning has become focus group balloting. Lee Clow
Ways to Raise a Purple Cow Think small. One vestige of the TVindustrial complex is a need to think mass. If it doesnt appeal to everyone, the thinking goes, its not worth it. Think of the smallest conceivable marketand describe a product that overwhelms it with remarkability. Go
from there. Source: Seth Godin, Fast Company (02.2003) 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 DAveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering HAVE MBAs KILLED OFF MARKETING?
Prof Rajeev Batra says: What these times call for is more creative and breakthrough reengineering of product and service benefits, but we dont train people to think like that. The way marketing is taught across business schools is far too analytical and datadriven. Weve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs. In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice
president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea. Businessworld/04Nov2002/Why Is Marketing Not Working? BIG DRUG MAKERS TRY TO POSTPONE CUSTOM REGIMENS. Most drugs dont 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) Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value.
Clayton Christensen, The Innovators Dilemma It sees all its competitors accomplishments merely as conventions to be overturned. Sony is the epitome of discontinuity.
Source: Jean-Marie Dru, Disruption COMPETITORS: The best swordsman in the world doesnt 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 doesnt do the thing he ought to do, and so the expert isnt 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
Top-performing Companies Extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable Jeffrey Sonnenfeld, Yale School of Management
Enormous sums of money are invested to reduce cycle time, improve quality, reengineer Much of this money is simply wasted. The waste is due to companies inability to develop wide-angle vision and tap into the power of the edge. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees Corporate consciousness is predictably centered around the mainstream. The best customers, biggest competitors, and model employees are almost invariably the focus of attention.
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees WE BECOME WHO WE HANG
Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.] Big Idea/s V.C.
GM Portfolio Roster ????? Come up with three Crazy Ideas, one of which might work.
Fr Timothy Radcliffe, Master of the Dominicans, to his friars 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) dont 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) Dont try to learn anything from people who seem to have solved the problems you face.
(11) Forget the past, particularly your companys success. Bob Sutton, Weird Ideas That Work: 11 Ideas for Promoting, Managing, and Sustaining Innovation Advice to Corporate Leaders: Consider the metaphor of the windmill: You can harness raw power but you cant control it. Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. Hire a
corporate anthropologist to analyze how tolerant your organization is of deviants and other innovators. Once the anthropologist leaves, hire a shaman to drive out the evil spirits of conformity. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) Deviance tells
the story of every mass market ever created. What Deviants, Inc. starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there way
out there. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) Giant projects contain within them the almost certain seeds of mediocrity. The very fact of their size causes constant scrutiny and thence political interference. Such oversight drains the passion of the champions and risksto the point of
certaintyfatal dumbing down and thence loss of the very distinction and quirkiness sought in the first place. Exec, Hollywood Innovation Source No. 1*: PPPs/Personally Pissed-off People
Branson started Virgin Atlantic because flying other airlines was so dreadful. Fortune/05.13.2002 *And there is no No. 2! As Francois Dalle, the chairman of LOreal, puts it, the planner must catch
what is barely beginning. Source: Jean-Marie Dru, Disruption Renewal = The Weird 10 = The High S.D. Enterprise/Individual Pioneer [Weird] Acquisitions Pioneer Customers & Alliance Partners [Measure the Portfolios S.D.] Divide & Conquer/Sell-by [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects [F2F & K2K] 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 Failures] Re-enforce a Culture of Disrespect/Piracy
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
Button-down Org H.S.D.E. Acquire for market share Suck up to biggest customers Pursue strategic vendors Bigger is better
Accept assignments as given Hire 4.0s from top schools Promote when theyve paid their dues Appoint a prestigious board
Hang out with my pals R.A.F. Be professional at all times/Honor thine elders
. Acquire for innovation
Partner with cool customers Seek out pioneering vendors Break it up to refresh Reframe all tasks to innovate Hire intriguing, wherever Promote tomorrow if the work product is weird and WOW Appoint an interesting, headstrong board
Take a freak to lunch today F.F.F. Stay loose, stay cool/The hell with thine elders ?????: Get better organized to do good work vs.
Get better disorganized to do great work Big Idea/s V.C. GM Portfolio
Roster 20. Brand Inside The 10 Basics Summary:
Message 2002 BI > BO The Brand Inside 10
BI1. The Execution Imperative: An Action Culture BI2. Cherish Failures BI3. Dent the Universe: WOW Projects/BHAGs BI4. Tell Me a Story: Demo Mania BI5. Cut the Crap: WebWorld = ALL BI6. Beautiful Systems BI7. The Modified Basis for Value Added: The New Brand Inside Warriors
BI8. Talent Time BI9. The HSDE: Weird Begets Weird BI10. A Brand New/Brand You World Jesper Kundes Challenge: All business processes should be aligned with the Brand/Value Promise.
Think Brand Driven Systems! 21. Tomorrows Organizations Itinerant Potential Machines.
New Organizational World: Shifts of Emphasis Staffing Organization Workforce Power Source Loyalty Career Asset Fat
Vertical Homogeneity Status/Command Rights Company Organizational Capital Thin Horizontal Diversity
Expertise/Relationships Project Reputational Capital Source: The Workforce of the Future, IHRIM Journal (12.2000) TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal if
youre stretching. Want to make their bones in the revolution.Love the new technologies. Well rewarded. Dont plan to be around 10 years from now. TALENT POOL PLUS. Seek out and work with worlds best as needed (its often needed). We aim to change the world, and we need gifted colleagueswho well may
not be on our payroll. BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont knowand then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENT but dont expect the co. to be around forever. Will scrap pet projects, and change course 180 degreesand 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 TODAYS VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Case. Etc.)
ALLIANCE MANIACS. Dont 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 dont share this (radical) vision. POTENTIAL MACHINES-ORGANISMS. Dont know whats coming next. But are ready to jump at opportunities, especially those that
challenge-overturn our own way of doing things. VIII. NEW BUSINESS. NEW BEDROCK. (Or: Upending The Big 3.) 22. Brand Talent+:
Addressing the Education Fiasco At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest
countries will be those with the best education and training. Richard Rosecrance, The Rise of the Virtual State FES/NOV2001: New Work. New Education. The Twain Must
Meet. TP Mood Anger. Despair. Hopelessness. Losing the War
to Bismarck (and Rockefeller) J. D. Rockefellers 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 childlet alone our childreceive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor
skills. grade in art at such a young age? 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 Fools 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 lowlevel 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! What actually correlates with success are not grades but engagementgenuine involvement in courses and campus activities. Engagement leads to deep learning. Thats very different from just memorizing stuff for an exam. As Russ Edgerton of the Pew Forum on Undergraduate Learning notes, What counts is what students
do in college, not who they are or where they go to college, or what their grades are. John Merrow/USA Today/02.2003 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 Children should be taught in an active way by doing things and playing games. Its very different to what is taught in schools which involves sitting
back and absorbing information. Edward de Bono/The Independent/10.28.2002 The Learners 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 Really bright kids who just
needed to get excited teacher, Oakley School Toms Edu3M Manifesto* *Manifesto for Education in the 3rd Millennium
Education3M Learning 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 oneand 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 thisthe right stufffits 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 languagedoes not require schools, or even competent parents. [It does require a desperate need-to-know.] Great teachers are great learners, not impartersof-knowledge. Great teachers ask great questionsthat launch kids on lifelong quests.
The world is not about right & wrong answers; it is about the pursuit of increasingly sophisticated questionsjust 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 antilearning 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 vigorat 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 doesnt.] [Hint: Understatement.]
The boys who made the best Grotties usually turned out to be nonentities later; boys who hated Groton did much better. FDR biographer John Gunther (quoted in Whoever Makes the Most Mistakes Wins, Richard Farson & Ralph Keyes)
Fail . Forward. Fast. High Tech CEO, Pennsylvania Read This! Whoever Makes the Most
Mistakes Wins: The Paradox of Innovation Richard Farson & Ralph Keyes: Ye gads: Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, hes actually found
a negative correlation. It seems that schoolrelated evaluations are poor predictors of economic success, Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on. Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
The NAESP Attributes of Those Who Made the 10th Grade History Book Committed! Determined to make a difference! Focused! Passionate!
Irrational about their lifes project! Ahead of their time / Paradigm busters! Impatient! / Action Obsessed Attributes of Those Who Made the 10th Grade History Book Made lots of people mad! Flouted the chain of command!
Creative / Quirky / Peculiar! / Rebels! / Irreverent! Masters of improv / Thrive on chaos / Exploit chaos! Attributes of Those Who Made the 10th Grade History Book Made lots of people mad!
Flouted the chain of command! Creative / Quirky / Peculiar! / Rebels! / Irreverent! Masters of improv / Thrive on chaos / Exploit chaos! Attributes of Those Who Made the 10th Grade History Book
Forgiveness > Permission Bone honest! Flawed as the dickens! In touch with their followers aspirations Damn good at what they do! 23. Revolution Required: The
Healthcare Mess. 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
Age of Customer Control Is: Amen! The Age of the
Never Satisfied Customer Regis McKenna 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. Reuters (12.11.01): 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 centric Healthcare) (Patient- A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new
choices to consumersraising 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 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. Reuters (12.11.01):
Consumer Imperatives Choice Control (Self-care, Self-management) Shared Medical Decision-making Customer Service Information Branding
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 Jordans 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) Were/Im in charge! (4) Well take no guff from anyone. (5) We know the emperor has no clothes. 3. The IS/Web REVOLUTION
Were in the Internet age, and the average patient cant 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 dont talk to each other. Boston Globe (09.30.2001) Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause 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 Manhattanback surgery. Newark 2X New Haven prostatectomy. Rapid City SD 34X Elyria OHbreast-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 recognizedleaving 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
The EMS Myth Speed has never saved anybodys life. Period.W.H. Leonard, Medical Transportation Insurance Professionals Source: USA Today (03.21.02)
1,000,000 serious medication errors per year illegible handwriting, misplaced decimal points, and missed drug interactions and allergies. Source: Wall Street Journal/ Institute of Medicine
Study: Medical Errors Affect 20 Percent of Patients Boston Herald/ 02.04.2003 Answer: (1)
Physician order-entry system, (2) stick to treatment guidelines for high-risk patients, (3) adequate ICU staffing. The perils/costs of folk wisdom:
Pills vs. IV/$100. Per use. Patient by patient, problem by problemdrug reactions, hospital caused infectionsSalt Lake Citys LDS Hospital has attacked treatmentcaused injuries and deaths. One of the secrets of LDSs success is a custombuilt 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. Barcoded wristband confirms meds. National Center for Patient Safety in Ann Arbor. Docs and researchers
discuss optimal treatment regimensresearch center in Durham NC. Doc measures & guidelines; e.g., pneumonia vaccinations from 50% to 84%. Blamefree system, modeled after airlines. Whats 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 Our entire facility is digital. No
paper, no film, no medical records. Nothing. And its all integratedfrom the lab to Xray to records to physician order entry.David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002) Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integratedfrom the lab to X-ray to records to physician order entry.
Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer thats pre-programmed. If the physician wants, well go out and wire their house so they can sit on the couch and connect to the
network. They can review a chart from 100 miles away.David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002) 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 Vinsonfor reporting the lost tool. Amy Edmondson & 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 Specialty! Without having nearly the infrastructure costs or the labor
costs that a larger organization has to deal with, we can be more profitable. We can turn patients quicker, and we can have shorter lengths of stay with equal to or better outcomes.David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002) 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 & assigns) (or heirs 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. Pharmacogenomics could fundamentally change the nature of drug discovery and marketing,
rendering obsolete the pharmaceutical industrys 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., Genentechs 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) Sequenom/David Ewing Duncan/Wired11.02 Sequenom has industrialized the SNP [single nucleotide polymorphisms] identification
process. This, Im told, is the first time a healthy human has ever been screened for the full gamut of genetic-disease markers. On the horizon: multi-disease gene kits, available at Wal*Mart, as easy to use as home-pregnancy tests. You cant look at humanity separate from machines; were so intertwined were almost the same species, and the difference is getting smaller.
Pharmacogenomics: End of Blockbusters by End-of-Decade (Reuters/5-22) Barrie James, Pharma Strategy Consulting: Were moving from a blunderbuss approach to laserguided 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 dont 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 dont 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 FDAs approval of robotic partialbypass surgery Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status: $1.3T. 40M 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 everybodys mad and feels powerless: docs, patients, nurses, insurers, employers, hospital administrators and staff.
Message: (1) An unparalleled time imagination for and bold action. (2) A time of unprecedented opportunities. (3) A time
of unprecedented risk. HealthCare 21 HealthCare21: 21 Ideas for Century21 1. Hospitals kill people. (And many of those they dont kill, they wound.) (And they deny it.) (ERRORS RULE!) And: Hustling
ambulances kill pedestriansand dont save patients. 2. Doctors are spoiled bratswho dont like measurements. Or any form of interference. Docs are also cover-up artists. The REAL Hippocratic Oath: DONT RAT ON A FELLOW DOC. 3. Most prescription drugs dont workfor a PARTICULAR patient. Current drugs = Blunderbusses. 4. Think WELLNESS. Think PREVENTION. 5. THERE IS LITTLE SCIENCE IN MEDICINE. (See state to
state variations country to country variations the general lack of agreed upon treatments.) 6. You could save thousands of lives (think Schindler)if you just outlawed handwritten prescriptions. 7. Detailers will disappear when GenX docs arrive. HealthCare21 (Cont.) 8. IS/IT in hospitals is sub-primitive (despite enormous expenditures).
9. Systemic IS/IT is worselinks between docs, insurers, providers, patients. 10. ELECTRONIC MEDICAL RECORDS TO UNIFORM STANDARDS. (NOW.) (PLEASE.) 11. THE WEB WILL LIBERATE. (Info = Power.) (BELIEVE IT.) 12. 80M BOOMERS RULE. ($$$$$. Desire for c-o-m-p-l-e-t-e CONTROL. NOW. LEADERSHIP OF AGING PROCESS.) 13. Drug Discovery processes at Big Pharma are hopelessly over-complicated.
(???: Bye Bye Big Pharma.) 14. 90% of the healthcare fix: HARVEST THE LOW-HANGING FRUIT. They are NOT the Enemy. I have seen the enemy and it am me. Damn it. HealthCare21 (Cont.) 15. The number of U.S. un-insured is the nations #1 disgrace. That said, insured consumers are spoiled brats. They/we/me act as if healthcare were a free good and
believe that an incipient hangnail calls for at least a CAT scan or two. ANSWER: MAKE US FEEL THE PAIN. 16. Genetic engineering & biotech change EVERYTHING. (Within 15 years.) 17. New Medical Devices change EVERYTHING. (Within 15 years.) 18. IS/IT changes EVERYTHING. (Within 10 years.) 19. New Docs change EVERYTHING. (Within 10 years.) 20. New Patients change EVERYTHING. (Within 5 years.)
* * HealthCare21 (Cont.) ALL THIS = ENORMOUS OPPORTUNITY. 21.
The Opportunity of Several Lifetimes. (For the Bold & Brave.) HCare WILL be TOTALLY re-invented in the next two decades. (And, hey, it is our largest industry.) 24. RevGov: Re-inventing
Government. WE NEED IDEAS! A Bakers Dozen Merger Messages: Private Sector & DHS/BTSD 1. Attitude Rules: Opportunity or Pain in 2. Unique time for Deep Re-assessment. (WE MUST RE-INVENT THE
ESSENTIAL IDEA OF HOMELAND SECURITY.) 3. THIS SORT OF THING ONLY HAPPENS ONCE EVERY SEVERAL DECADES! (I.E.: Dont blow the Main Chance!) 4. Avoid getting totally caught up in (necessary) details. (KEEP YOUR EYE ON THE B-I-G OPPORTUNITY.) 5. Lets assume you only hold this job for the next few months. MAKE A DAMN DIFFERENCE EVERY DAMN DAY. 6. What happens in the next few months is the principal basis by which your entire professional career will be judged.
7. How well (IMAGINATIVELY!!!) you do this matters to 280,000,000 Americans. 8. Every morning, say quietly to yourself, GROW UP. Forget Age Old Turf Disputes. (TURF WARFARE IS OSAMAs-TERRORISMs NO. 1 OPPORTUNITY.) 9. Inclusiveness matters. Be incredibly careful about Respect & Involvement. 10. Score some Quick Wins. (Rudys Rule.) Needed: New Behaviors. Focus on the Positives. (Bobs Rule.) 11. BE INSANELY LAVISH IN PRAISE OF SMALL ACTS OF COOPERATION. (Be publicly brutal to the smallest act of turf warfare.) 12. GOOD DECISIONS MADE TODAY BEAT GREAT DECISIONS DELAYED FOR
MONTHS. MOMENTUM & MORALE MATTER. DELAY = CANCER. 13. VISIBILITY RULES! Uncertainty: We dont know when things will get back to normal.
We no longer know what normal means. Ambiguity: BMcC: (1) Hierarchy vs. Network organization. (2) NWO = Doctrine as center of
gravity/source of motivation; distributed support & decisionmaking;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 In an era when terrorists use satellite US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont
talk to each other. phones and encrypted email, Boston Globe (09.30.2001) From: To:
Weapon v. Weapon Org structure v. Org structure Ideas > Leadership NO: Good govt
YES: EFFECTIVE Govt (in altered/ambiguous times) A Plea for virtual [RESPONSIVE] government
Agile. WALLS MUST FALL! The W.O.G. (Work-of-
Insta/ Targeted WPTs (WOW Government): (B.H.A.G.) Project Teams
(with Experiments rule! Failures rule!
Talent matters! New Heroes/ Hall of Fame IS/IT to the Max!
Streamlin ed procurement (esp. IS/IT) Bill Owens Lifting the Fog of War
Case: The 1990s was a decade of multiple revolutions political, economic, technologicalthat 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 militaryin 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 Our military is very good at doing things as they are
supposed to be done, but it is not always good at changing the way things ought to be done. Highly professional militaries can be very good at maintaining the institutions traditions, mores and cultures in the face of rapid and important change. Equating professionalism with automatically defending the status quo can be disastrous. This is the mindset that drives service loyalties
toward narrow parochialism, and congeals organizations into brittle shells. We end up ignoring opportunities that could actually offer higher military effectiveness. Bill Owens, Lifting the Fog of War How dare you. If you dont support us, our opponents will take
advantage and use this to cut the force. CNO staffer [Flag officer] to Bill Owens, 6th Fleet Commander Mike [Boordas] self-avowed priority was to preserve and protect the size, budget and structure of the U.S. Navyhis Navy irrespective of any other consideration
because he deeply believed that the Navy was the core of Americas military capability. My view over the years had shifted toward the conviction that we in the Navy need to implement major changes in order to become more jointto work better and more closely with the other services. Bill Owens, Lifting the Fog of War
Many flaws remainedflaws not from poor performance, but from an ingrained command hierarchy and an outmoded concept of war that had taken root during World War II and then during the cold war. Desert Storm was a joint military operation in name rather than in fact. The battlefield was divided among service components. The fiefdoms existed not only because of tradition,
service rivalry and the egos of the commanders; they were also there because of technological limitations. We did not have the communications capability to do it differently. Bill Owens, Lifting the Fog of War Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause 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
RMA: (1) Battlespace awareness. (2) C4I. (Command, control, communications, computers & (3) Precision force use. intelligence.)
[The RMA] means creating a synergy in new weapons, sensors and communications that is made possible by the successful melding of the technological applications with an informationage military organization. Bill Owens, Lifting the Fog of War
In the second half of the twentieth century a new society of individuals emergeda breed of people unlike any the world has ever seen. Educated, informed, traveled, they work with their brains, not their bodies. They do not assume that their lives can be patterned after their parents or grandparents. Throughout human history, the problem of identity was settled in one wayI am my mothers daughter; I am my father's son. But in a discontinuous and
irreversible break with the past, todays individuals seek the experiences and insights that enable them to find the elusive pattern in the stone, the singular pattern that is me. Shoshana Zuboff & James Maxmin, The Support Economy If you dont like change, youre going to like irrelevance
even less. General Eric Shinseki, Chief of Staff, U. S. Army Old: Heavy. Seek direct contact. New: Stryker brigade. Stealth. Avoid direct contactchoose your moment. Depend heavily on information technology, and enhanced intelligence, surveillance
and reconnaissance capabilities. Source: A Different War, Peter Boyer (The New Yorker/07.01.2002) Substituting information for armor is a disconcerting notion to a tank soldier. Soldiers will learn that battle field awareness can be as comforting as armor. Source: A Different War, Peter Boyer (The New Yorker/07.01.2002)
From Tank to Future Combat System (e.g., virtual tank) Analogous to switch from circuit breaker makers to GE Industrial Systems, or guys in brown trucks to Let Brown do it. Source: A Different War, Peter Boyer (The New Yorker/07.01.2002)
VIII. NEW BUSINESS. NEW MARKETS. 25. Trends I: Women Roar.
Women & the Marketspace. ????????? Home Furnishings 94% Vacations 92% (Adventure Travel 70%/ $55B travel equipment)
Houses 91% D.I.Y. (home projects) 80% 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% checks 61% bills
53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed 1970-1998 Mens median income: +0.6% Womens median income: + 63% Source: Martha Barletta, Marketing to Women
$4.8T > Japan 9M/27.5M/$3.6T > Germany Business Purchasing Power Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50%
Source: Martha Barletta, Marketing to Women Women-owned Bus. U.S. employees > F500 employees worldwide Source: Martha Barletta, Marketing to Women 2000-2010
55-64: 48%; 25-54: 2% 65+/2001: M, 14.6M; F, 20.5M Source: Martha Barletta, Marketing to Women New golfers 37% Basketball 13.5M 1 in 27 (70) 1 in 3 (96)
1874? 1874 Jock Strap 1977 Jogbra 1977 ... 25K 1996 42 M
Yeow! 1970 1% 2002 50% OPPORTUNITY NO.
1!* [* No shit!] 91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.) Source: Greenfield Online for Arnolds Womens Insight Team
(Martha Barletta, Marketing to Women) Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities
Men: Individual perspective. Core unit is me. Pride in self-reliance. Women: Group perspective. Core unit is we. Pride in team accomplishment. Source: Martha Barletta, Marketing to Women
FemaleThink/ Popcorn Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons. He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make
connections. Men seem like loose cannons. Men always move faster through a stores aisles. Men spend less time looking. They usually dont like asking where things are. Youll see a man move impatiently through a store to the section he wants, pick something up, and then, almost
abruptly hes ready to buy. For a man, ignoring the price tag is almost a sign of virility. Paco Underhill, Why We Buy* (*Buy this book!) Shopping: A Guys Nightmare or a Girls Dream Come True?
Buy it and be gone vs. Hang out and enjoy the experience Source: The Charleston [WV] Gazette/06.22.2002 Antaun Hughes, Capital High School,
Women enjoy going through the actual process of everything, while guys like to get straight to the point. on M-F shopping habits: Source: The Charleston [WV] Gazette
How Many Gigs You Got, Man? Hard to believe Different criteria Every research study weve done indicates that women really care about the relationship with their vendor. Robin Sternbergh/ IBM
Women's View of Male Salespeople Technically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to womens needs. Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)
Read This: Barbara & Allan Peases Why Men Dont Listen & Women Cant 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 Dont Listen & Women Cant Read Maps Resting State: 30%, 90%: A
woman knows her childrens 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 Dont Listen & Women Cant 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 Dont Listen & Women Cant Read Maps
Female hearing advantage contributes significantly to what is called womens intuition and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldnt despair. They are excellent at imitating
animal sounds. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Senses Vision: Men, focused; Women, peripheral. Hearing: Womens discomfort level I/2 mens. Smell: Women >> Men.
Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women Sensitivity to differences: Twice as many card stacks. More contextual, holistic. People powered: Age 3 days, baby girls 2X eye contact.
Source: Martha Barletta, Marketing to Women Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps: Women love to talk. Men talk silently to themselves. Women think aloud. Women talk, men feel nagged. Women multitask. Women are indirect. Men are direct. Women talk
emotively, men are literal. Men listen like statues. Boys like things, girls like people. Boys compete, girls cooperate. Men hate to be wrong. Men hide their emotions. When a woman is upset, she talks emotionally to her friends; but an upset
man rebuilds a motor or fixes a leaking tap. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Stress* ** Men: Fight or flee Women: Seek the company of friends
*Source: UCLA, Female Response to Stress: Tend and Befriend, Not Fight or Flight/Psychological Review **90% of stress research: men We Really Dont Get It! Review of Unfaithful: the latest entry in the category of male directors clueless
fantasies concerning what women fantasize about in their nonexistent free time. Source: Julie Iovine, NYT (05.19.2002) Men & Women on Thelma & Louise. MEN: Sundance Kid; women who get angry, swear, go to bars, leave their mate. WOMEN: women
controlled by the men in their lives, who would rather be dead than oppressed. Source: Judy Rosener, Americas Competitive Secret [The Hollywood scripts that men write tend to be direct and linear, while womens
compositions have many conflicts, many climaxes, and many endings. Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World] 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, Americas Competitive Secret
[I only really understand myself, what Im really thinking and feeling, when Ive talked it over with my circle of female friends. When days go by without that connection, I feel like a radio playing in an empty room. Anna Quindlen]
Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* TP/Furniture: Tech Specs vs. Soul. ** *Redwood (UK) **High Point furniture mart (04.2002)
Initiate Purchase Men: Study facts & features. Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women Men & women on ambiguous problem [no answer]: MEN:
quickly arrive at right answer WOMEN: longer time, multiple options in if, then form Source: Judy Rosener, Americas Competitive Secret Storytelling: Men start with the headline. Women start with the
context. Source: Martha Barletta, Marketing to Women Tomboy Tools. E.g.: smaller, lighter in weight. Tupperware party model. Darcy Winslow is a leading figure in Nike Goddess, a
companywide grassroots team whose goal is a once-and-for-all shift in how a high-testosterone outfit sells to, designs for, and communicates with women. Fast Company/08.2002 Women werent comfortable in our stores. So I figured out where
they would be comfortablemost likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have furniture, not fixtures. Above all, I didnt want it to be girlie. John Hoke, designer, Nike 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 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 todays skills? EVEolution The New New Jiffy Lube In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the
female mold, women were being turned off by the lets get it fixed fast, no conversation required experience. New JL: Control over her environment. Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability. EVEolution
Lowes Gets it. 1989: 13%/lumber shop 2002: >50% War has broken out over
your home-improvement dollar, and Lowes has superpower Home Depot on the defensive. Its not-sosecret ploy: Lure women. Forbes.com
Home Depot is still very much a guys chain. But women, according to Lowes research, initiate 80 percent of all homeimprovement purchase decisions, especially the big ticket orders like kitchen cabinets, flooring and bathrooms. We focused on a customer nobody in home improvement has focused on. Dont get me wrong, but women are far more discriminating than men, says CEO Robert
Tillman, 59, a Lowes lifer. Forbes.com Yes!: Crest Spinoff Targets Womencover story, Ad Age/06.03.02 Crest Rejuvenating Effects. Chicks in charge team. $50M launch. Packaging.
Taste. Features. Mattel Sees Untapped Market for Blocks: Little GirlsHeadline, WSJ/04.06.02 Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello with interconnecting plastic squares, balls, triangles, squiggles,
flowers and sticks, in pastel colors and with rounded cornerswill go beyond Legos linear play patterns. Women dont buy They join them. brands.
EVEolution Not ! Year of the Woman
Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy Culture
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? STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick. My game is haranguing business leaders about my fact-based conviction that womens
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 If we are single, they say we
couldnt catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldnt keep him. If we are widowed, they say we killed him. Kathleen Brown, on the joys of female political candidacy 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. Id 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!
Each time a womens movie is a success [e.g., First Wives Club] everybody is surprised all over again. But if any action movie is a hit, it instantly spawns a dozen knockoffs. Exec [F], major Hollywood studio
Psssst! Wanna see my porn collection? Norwegian Law: Boards must have at least
40% women. Duh! We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the
assortment in that store to match the ethnicity of the neighborhood its in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. Thats what Super Saver is. All the signage is in both languages. Theres a 100 percent Spanish-speaking staff in the store.Larry Johnston, CEO, Albertsons Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Companys New (All Male) Leadership Team
In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. I have a responsibility to do the best we can for shareholders. * ** *Source: New York Times/05.05.02 **Wouldnt you love to watch him tell that face-to-face
to Margaret Thatcher or Carly Fiorina? (I would.) Ad from Furniture /Today (04.01): MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that Way Presenting Experts: M = F=
?? 16; (94% = 272) Please just
one couch or chair where my feet hit the ground! Owner, 5 furniture stores, UK Stupid!
Stupid: Amazing, now that I think about it. A bunch of guys --developers, architects, contractors, engineers, bankers--sitting around designing shopping centers. And the end users will be overwhelmingly
women! Instructions: 1. Purchase ticket to symphony 7:30 p.m. show. 2. Drink three large bottles of water between 3 p.m. and 7 p.m. 3. X-dress. 4. Wait in queue at Ladies at Intermission. 5. Realize what total wretches you are.
6. Seize a microphone and apologize publicly to every woman in the hall. Customer is King: 4,440 Customer is Queen:
29 F.Y.I. Women Beat Men at Art of Investing Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC
Davis (Cause: Guys are in and out of stocks more often; women choose Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women
Investment Club Returns Women-only clubs 1997 17.9% Mixed 17.3% Men-only 15.6% Source: National Assoc. Investors Value Line: Top State* Investment Clubs 2000
8 All male 19 Coed 22 All FEMALE * VT & Maine not included; D.C. included JBQ: Stop Treating Women Investors Like Idiots! Why all this focus on women and our lack of
investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe theyre smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives.
Source: Newsweek 01.08.01 Notes to the CEO --Women are not a niche; so get this out of the Specialty Markets group. --The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)
--If you dip your toes in the water, what makes you think youll get splashy results? --Bust through the walls of the corporate silos. --Once you get her, dont let her slip away. --Women ARE the long run! Source: Martha Barletta, Marketing to Women 1. Men and women are different. 2. Very different.
3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 4. Women buy lotsa stuff. 5. WOMEN BUY A-L-L THE STUFF. 6. Womens Market = Opportunity No. 1. 7. Men are (STILL) in charge. 8. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.
9. Womens Market = Opportunity No. 1. 10. NO SHIT. 26. Trends II: Boomer Bonanza/ Godzilla Geezer.
Subject: Marketers & Stupidity Its 18-44, stupid! Subject: Marketers & Stupidity 18-44 is stupid,
stupid! Or is it: 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)
Aging/Elderly $$$$$$$$$$$$ Im in charge! NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement,
Will America Ever Be the Same? USN&WR Cover/06.01 The Latest Golden years Trend: Going Back to College Headline,
Newsweek/06.10.02 Member Growth: 1987 1997 18 34: 26% 35 49: 63% 50+: 118% Source: IHRSA
50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $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 Advertisers pay more to reach the kid because they think that once someone hits middle age hes too set in his ways to be susceptible to advertising. In fact this
notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywoods cult of youth.James Surowiecki (The New Yorker/04.01.2002) Read This!
Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders Marketers attempts at reaching those over 50 have
been miserably unsuccessful. No markets motivations and needs are so poorly understood.Peter Francese, founding publisher, American Demographics Households headed by someone 40 or older enjoy 91% ($9.7T) of
our populations net worth. The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders The mature market
cannot be dismissed as entrenched in its brand loyalties. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
While the average American age 12 or older watched at least five movies per year in a theater, those 40 and older were the most frequent moviegoers, viewing 12 or more a year.Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-yearolds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market? Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders Take the Road Less TraveledAdvertising Age headline re Sony, upon targeting Zoomers, the neglected 34% of its customers who are age 50+
Stupid! Age Power will rule the 21 century, and we are woefully unprepared. st
Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old No: Target Marketing Yes: Target
Innovation & Target Delivery Systems Women! Boomers! Design! The Royal Tenenbaums
The New Pillow Talk: Specialty Pillows Are Big Sellers as Achy Boomers Seek Sleep WSJ (03.22.2002) Nice Job Title, Frito-Lay!
Rebecca Johnson, VPEthnic and Urban Marketing Hispanics: 38.5% growth, 1990-2000, vs. 9.3%
overall* *Source: Communispace/2003 Relative to the demand, the success stories are pitifully few Andrew Nuttney, Research Director, The Research & Advisory Group; on marketing effectively to Hispanics
27. Trends III: Green = $$$$$ $ Of all the ways the company will be judged over the next decade, none will be
greater than our response to the issue of climate change. William Clay FORD Jr. Police
Vehicles Go Green and Save Green Wall Street Journal/02.06.03 BP has not just met its targetto reduce emissions of greenhouse
gases by 10 percent below 1990 levels [more stringent than Kyoto]it had exceeded it, done so eight years ahead of schedule and with no net economic cost. In fact, because of energy efficiency measures, the emissions reductions amounted to a net gain of $600 million. The New York Times Magazine/12.08.2002
50% to 36%: Protect Environment > Economic Growth. And #3: GREEN?????: 58% to 34%: Protect Plants & Animals > Preserve Private
Property Rights. E.g.: Genetically Altered Food Would eat: M, 71%; F, 50% Give to children: M, 59%; F, 37% Pay more for non-altered: M, 35%; F, 47% Source: www.pulse.org & USA Today
Three Most Important Upgrades Home Purchasers Consider Energy efficiency/83% Kitchen cabinets/66% Indoor air quality/50% Source: Professional Builder
The U.S. building and construction industry reinvest only about 1 percent of their revenue in R & D, compared to 10 to 20 times that for cutting edge industries like electronics and pharmaceuticals. No wonder their techniques and materials are so antediluvian. Paul Hawken et al., Natural Capitalism
No: Target Marketing Yes: Target Innovation & Target Delivery Systems
Womens [Aging,Green] Market: Why Tough Encompassing Attitude CULTURAL! Of all the ways the company
will be judged over the next decade, none will be greater than our response to the issue of climate change. William Clay FORD Jr.
No: Target Marketing Yes: Target Innovation & Target Delivery Systems
28. Trends IV: Think Global! THE EIGHT RULES Rule #1
Theres no such thing as too small to be global. [GET A LIFE.] Rule #2 If it is [truly] good
then its good enough for THE WORLD. Rule # 3 When? Now.
Rule #4 Hang out vigorously! Rule #5 Seek Talent!
Send Talent! Message(s) ABB, Shell ELITE Global Cadre Genuinely Global BOARD Rule #6
Glom onto a [modest-sized] partner who loves/ gets you! Rule #7 Tailor!! [But dont give away the store.]
Rule #8 Phil Crosby notwithstanding, youll not [likely] get it right the first time! IX. NEW BUSINESS.
NEW LEADERSHIP. 29. The Passion Imperative: Leadership The
50 The Basic Premise. 1. Leadership Is a Mutual Discovery Process.
I dont know. 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, mostlycaveat: they
dont engage unless theyre 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-teachersleaders) had never dreamed existedand 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!
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!) 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
(+TPs writing room pics) 4. Find the Businesspeople! (Type III Leadership) I.P.M. (Inspired Profit
Mechanic) 5. All Organizations Need the Golden Leadership Triangle.
The Golden Leadership Triangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic. 6. Leadership Mantra #1: IT
ALL DEPENDS! Renaissance Men are a snare, a myth, a delusion! 7. The Leader Is
Rarely/Never the Best Performer. 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0. Walter Alston1AB. Tony LaRussa 132 games, 6 seasons. Tommy
LasordaP, 26 games. Sparky Anderson1 season. The Leadership Dance. 8. Leaders SHOW UP!
The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it. John Keegan, The Masks of Command
P.S. 5,000 miles for a 5 min. meeting! Mark McCormack: 9. Leaders
LOVE the MESS! Im not comfortable unless Im uncomfortable. Jay Chiat
If things seem under control, youre just not going fast enough. Mario Andretti 10. 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!) 11. Leaders Re
-do. If Microsoft is good at anything, its avoiding the trap of worrying about criticism. Microsoft fails constantly. Theyre eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they
leverage the power theyve gained in other markets to enforce their standard. Seth Godin, Zooming The lesson is the importance of relentless readjustment. At Microsoft they never get it right, but theyre constantly, relentlessly adjusting. And somehow, through
constant readjustment practice over time, they gradually weave their way to the right place. George Colony, Forrester Research If it works, its obsolete. Marshall McLuhan
12. BUT Leaders Know When to Wait. Tex Schramm: The
too hard box! 13. Leaders Are Optimists. Hackneyed but none the less
LEADERS SEE CUPS AS HALF FULL. true: [Ronald Reagan] radiated an almost transcendent
happiness. Half-full Cups: Lou Cannon, George (08.2000) 14. Leaders DELIVER!
Leaders dont want to win. Leaders need to win. #49 It is no use saying We are
doing our best. You have got to succeed in doing what is When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things
done, the obstacles overcome, the role her people playedor does she keep wandering back to strategy or philosophy? Larry Bossidy, Honeywell/AlliedSignal, in Execution 15. BUT Leaders Are Realists/Leaders
Win Through LOGISTICS! The Gus Imperative! 16. Leaders
FOCUS! To Dont List 17. Leaders CLEAR
DESIGN SPECS. Set Danger: S.I.O. (Strategic
Initiative Overload) JackWorld/ [email protected]: (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! 18. 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?
Its Relationships, Stupid. 19. Leaders Trust in TRUST!
Credibility ! $1.00 for competence. $249.00 for attitude/ honesty.
Bonus/TP: If It Aint Broke Break It. 20. Leaders FORGET!/ Leaders
DESTROY! Cortez! Leaders dump the ones who brung
em. Nokia, HP, 3M, PerkinElmer, Corning, etc. WCW Monday Nitro was our top rated show by more than double anything else [and the top rated show on basic cable], and we dumped it! Can you name another network that dropped its top-rated show? I dont know if consumers noticed, but it
said everything to our staff.Scot Safon, on the successful reinvention of TNT to embody its new vision, TNT: We know drama. 21. BUT Leaders Have to Deliver, So They Worry About Throwing the Baby Out with the
Bathwater. Damned If You Do, Damned If You Dont, 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)
22. Leaders HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers Upstart Competitors
Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision WE BECOME WHO WE HANG WITH! Leaders know
23. Leaders Make [Lotsa] Mistakes and MAKE NO BONES ABOUT IT! Fail faster. Succeed sooner.
David Kelley/IDEO No matter. Try again. Fail again. Fail better. Samuel Beckett Success is the ability
to go from failure to failure without losing your enthusiasm. Winston Churchill (as quoted by John Peterman) The Silicon Valley of today is built less atop the spires of earlier
triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo (03.02) 24. Leaders Make BIG MISTAKES! Reward excellent
failures. Punish mediocre successes. Phil Daniels, Sydney exec (and, de facto, Jack) 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 Create. 25. Leaders Know that THERES 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. They [consumer goods company]
have acquired a bunch of products, which is what everyone is doing. But whats the point, the message, the story line, the Big Idea that makes it all hang together? Exec, major consumer goods company
I never, ever thought of myself I was interested in creating things I would be proud of. Richard Branson as a businessman. 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 Dont Get It: intent to purchase 100%; unique 0% to 5%) Source: Jump Start Your Business Brain, Doug Hall 26A. Leaders Make Their Mark /
Leaders Do Stuff That Matters I never, ever thought of myself I was interested in creating things I would be proud of. Richard Branson
as a businessman. Legacy! Herman Edwards: I picked up one of those Jets books and I told them, What you do as a football team is your legacy. When youre 80 years old, what youve done will be in this book and no one can
take that away from you. Your grandkids, your kids after that, they will know what you did. Its about leaving your name in stone. Source: The New York Times (12.31.02) COL Richard Hallock (to incoming SECDEF James Schlesinger): You must understand that if you want to leave a legacy it is vital for you to make a quick
decision about what you want the legacy to be because after several months you become so caught up in the business of the Pentagon, so overwhelmed, that it will be too late. Pick a few projects and put the full weight of the office behind them. Guide the projects. Nurture them. Know from the very beginning that this will be your legacy. Force them through the bureaucracy. BOYD: The Fighter Pilot Who Changed
the Art of War (Robert Coram) TPs least favorite term: Stewardship* *I want to have exploited resources, not conserved resources CEO Assignment2002 (Bermuda): Please leap forward to 2007, 2012, or
2022, and write a business history of What will have been said about your company during your tenure? Bermuda. Ah, kids: What is your vision for
the future? What have you accomplished since your first book? Close your eyes and imagine me immediately doing something about what youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
Ideas > Leadership Today the problem is not how to produce more to sell more. The fundamental question is that of the products right to exist. And it is the designers
right and duty to question the legitimacy of the product. Philippe Starck CEO Assignment2002 (Bermuda): Please leap forward to 2007, 2012, or 2022, and write a business history of What will have
been said about your company during your tenure? Bermuda. TPs least favorite term: Stewardship* *I want to have exploited resources, not conserved resources
Ah, kids: What is your vision for the future? What have you accomplished since your first book? Close your eyes and imagine me immediately doing something about what youve just said. What would it be? Do you feel you have an
obligation to Make the world a better place? NO: Good govt YES: EFFECTIVE Govt (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
W-a-y Up the Value-added/ Intellectual Capital Chain Organizations 09.11.2000: HP bids $18,000,000,000
for PricewaterhouseCoopers Consulting business! 28. Leaders LOVE the New Technology!
100 square feet 29. Needed? Type IV Leadership: Technology Dreamer-True Believer
The Golden Leadership Quadrangle: (1) CreatorVisionary (2) Talent Fanatic-Mentor-V.C. (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer Talent.
30. 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. 31. Leaders
Manage Their EVP/Internal Brand Promise. MantraM3 Talent = Brand
32. 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 mlange, 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
Passion. 33. Leaders Out Their PASSION! Create a cause, not a
business. G.H.: Vision is a love affair with an idea. Boyd Clarke & Ron Crossland, The Leaders Voice
A winning attitude takes a lot of hard, It begins with an assumption that we do have a choice, we can make a difference among others and within ourselves.James Cramer, The Greenway
honest work. Group & former CEO of the AIA ! 34. Leaders Know: ENTHUSIASM BEGETS
ENTHUSIASM! BZ: I am a Dispenser of Enthusiasm! 34A. Leaders Are
in a Hurry The Urgency Factor: LEADERS have a distorted sense of time. (E.g.: Rummy thinks he asked months ago it was
the day before yesterday.) 35. 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. TPs final words: CYNICISM SUCKS.] The references were there; the But there was no fire, no foot halfway over the starting line eager to sprint down the track to
success.James Cramer, The Greenway portfolio was dazzling. Group & former CEO of the AIA (on the rejection of a famous firm) The Job of Leading.
36. Leaders Know Its ALL SALES ALL THE TIME. If you dont LOVE SALES find
another life. (Dont pretend TP: youre a leader.) (See TPs The Project50.) 37. Leaders
LOVE POLITICS. If you dont LOVE POLITICS find another life. (Dont pretend TP: youre a leader.)
38. But Leaders Also Break a Lot of China If youre not
pissing people off, youre not making a difference! 39. Leaders Give RESPECT!
It was much later that I realized Dads 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 40. Leaders Say Thank You. The two most powerful things
a kind word and a thoughtful gesture. in existence: Ken Langone, CEO, Invemed Associates [from Ronna
Lichtenberg, Its Not Business, Its Personal] The deepest human need to be appreciated. need is the William James
41. Leaders Are Curious. The Three Most Important Letters
TP/08.2001: WHY? 42. Leadership Is a Performance.
It is necessary for the President to be the No. 1 actor. nations FDR
You cant lead a cavalry charge if you think you look funny on a horse. John Peers, President, Logical Machine Corporation Find something small
that you can turn around. If youre on a 9game losing streak, you need to start with one great inning.Rudy 43. Leaders
Are The Brand The BRAND lives (OR DIES) in the minutiae of the leaders momentto-moment actions.
44. Leaders GREAT STORY! Have a Leaders dont just make products and make decisions.
Leaders make meaning. John Seeley Brown Introspection. 45. Leaders Enjoy Leading.
Warren, I know you want to be president. But do you want to do president? [Bertelsmans Reinhard] Mohn wasnt a creative type.
What got him juiced was the art of running an organization and motivating the people who work there. Fortune/05.27.2002 46. 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.) 47. But Leaders have MENTORS. Upon having the Leadership
Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* The Gospel According to TP: (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.)
48. Leaders Take Breaks. Zombie! Zombie! Zombie! Zombie!
The End Game. 49. Leaders ??? : 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
50. Leaders Know WHEN TO LEAVE! XI. NEW BUSINESS. NEW RULES.
30. Toms 60TIBs* *TIB = This I Believe 1. TECHNICOLOR RULES! (Passion Moves Mountains!) 2. Audacity Matters! 3. Revolution Now!
4. Question Authority! (& Hire Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!) 6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you cant take Silicon Valley out of the boy!)
7. Three Hearty Cheers for Weirdos. (Bill Gates, Steve Jobs, Larry Ellison, Scott McNealy, Craig Venter et al.) 8. Message 2003: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AINT SEEN NOTHIN YET!) 9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT OR DIE! 10. Big Sucks. (Mostly.) (VERY Mostly.)
11. Permanence Is a Snare & a Delusion. (Forget Built to Last. Its Yesterdays Idea.) 12. Kaizen (Continuous Improvement) Is Dangerous. 13. DESTRUCTION RULES! 14. Forget It! (Learning = Easy. Forgetting = Nigh on Impossible.)
15. Innovation Is Easy: Hang Out with Freaks. (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.) 16. Boring Begets Boring. (Cool Begets Cool.) 17. Think Portfolio. (Were All V.C.s.) 18. Perception Is All There Is. (Insiders ALWAYS overestimate the Radicalism of What Theyre Up To.)
19. Action ALWAYS Takes Precedence. Think: R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD FAILURE. PUNISH INACTION.) 20. He Who Makes & Tests the Quickest & Coolest Prototypes Reigns! 21. Haste Makes Waste. (SO GO WASTE!) 22. Screw-ups are the Mark of Excellence.
(Do It Right the First Time Is a Very Stupid Idea.) 23. Play Hard! Play Now! (Cherish Play!) 24. TALENT TIME! (He/She Who Has the Best Roster Rules!) 25. Re-do Education. Totally. (FOSTER CREATIVITY NOT UNIFORMITY.) (THE NOISIEST CLASSROOM WINS.)
26. Diversitys Hour Is Now! 27. SHE Is the Best Leader! 28. MARKETING MANTRA: Embrace the BIG THREE Demographics. (1) SHE is the Customer. (For everything.) (2) Rapidly Aging Boomers Have ALL THE MONEY. (3) Green Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY Gets It.) (Mere Programs Will Not Suffice.) 29. Re-boot Healthcare. (UNDERSTATEMENT.)
30. WHAT ARE WE SELLING? Experiences & Solutions > Quality & Satisfaction. (The Traditional Value-added Equation Is Being Set on Its Ear.) 31. DESIGN = New Seat of the Soul. 32. Branding Is for EVERYONE. He Who Has the BEST STORY Takes Home the Marbles.
33. DRAMATIC DIFFERENCE = Only Difference. 34. WORDS/Language Matters a Lot. (E.g.: Three Hearty Cheers for Wow!) 35. WHAT MATTERS IS STUFF THAT MATTERS. (Query #1: Are You Proud of It?) 36. eALL. (IS/IT: Half-way = No Way.) 37. DREAM Big! DREAM Enormous. DREAM Gargantuan. (These Are XXXL
Times.) 38. THINK MIKE! (Michelangelo: 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.) 39. There Is Only ONE BIG ISSUE. Crossfunctional Communication. 40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF UN-DUMBING.)
41. Beautiful Systems Are BEAUTIFUL. 42. The WHITE-COLLAR REVOLUTION Will Devour Everything in Its Path. 43. Take Charge of Your Destiny! BrandYou Moment! DISTINCT OR EXTINCT! 44. Powerlessness Is a State of Mind! Think: King. Gandhi. De Gaulle. 45. Pursue Adventure in Every Task.
46. EXCELLENCE Is a State of Mind. (Excellence Takes a Minute.) (No Bull.) 47. SHOW UP! (If You Care, Youre There.) 48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your TO DONT List.) 49. LIFE IS SALES. (The Rest Is Details.) 50. Boss Mantra #1: I DONT KNOW. (I Dont Know = Permission to Explore.)
51. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (Manager = Hurdle Removal Professional.) 52. Epitaph from Hell: He Woulda Done Some Truly Cool Stuff But His Boss Wouldnt Let Him. 53. Change Takes However Long You Think It Takes. (Eschew Incrementalism.) 54. Respect! (Rule 1: Dont Belittle!)
55. Thank You Trumps All! 56. Integrity Matters! Integrity = Credibility. (Dennis K. Is a Jerk.) 57. SOFT IS HARD. HARD IS SOFT. (Numbers Are Soft. People Are Not.) 58. Try Sunny! (Sunny Begets Sunny. Gloomy Begets Gloomy.) 59. DISPENSE ENTHUSIASM!
60. FUN Is Not a 4-Letter Word. So, too JOY. (And GRACE.) Successful Businesses Dozen Truths: TPs 30-Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the Bullshit that Marks Normal Industry Behavior.
5. A Maniacal Bias for Execution and Utter Contempt for Those Who Dont Get It. 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. Reward Excellent Failures. Punish Mediocre Successes.
11. Courage to Stand Alone on Ones Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power. Have you changed civilization today? Source: HP banner ad
Thank You !