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Summer 2000 … KOA wires up!

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Distinct or … Extinct Tom Peters Seminar2000 The Ackerley Group Sales Conference Seattle 18 September 2000. Summer 2000 … KOA wires up!. “Amazon.com Plans to Offer Cars Online” Headline: New York Times 08.24.00. - PowerPoint PPT Presentation
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Distinct or … Extinct Tom Peters Seminar2000 The Ackerley Group Sales Conference Seattle 18 September 2000
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Page 1: Summer 2000 … KOA wires up!

Distinct or … ExtinctTom Peters Seminar2000

The Ackerley GroupSales Conference

Seattle18 September 2000

Page 2: Summer 2000 … KOA wires up!

Summer 2000 …

KOA wires up!

Page 3: Summer 2000 … KOA wires up!

“Amazon.com Plans to Offer Cars Online”Headline: New York Times 08.24.00

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N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.

Auto-dimming

Emergency assistance

Cell phones, Voice mail, email, Internet access

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Levi’s and Philips

Stephano Marzano (Philips Design), Levi Strauss, Italian

designer Massimo Ossi: jacket with cell phone and MP3 player

built into pockets!

Source: Red Herring (09.00)

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“Davids vs. Corporate Goliaths: Could the

Record and Film Industries Be Brought Down by Teenagers?”Headline: The New York Times (08.06.00)

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“There’s 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

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NOW THAT’S 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

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“We are in a

brawl with no rules.”

Paul Allaire

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Tom Peters Seminar2000

Brand Everything:Distinct or Extinct!

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Structure

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

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Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

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Forces @ Work I

The Destruction Imperative!

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“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

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The [New] Ge Way

DYB.com

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“It used to be that the big

ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional

Venture Partners)

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“The Word(s)” on Vitality: Gary Hamel

“Sell By” [jettison old crap]

Spin Out [support entrepreneurs]

Spin In [buy young firms]

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Brand Inside

Brand Work: The WOW Project

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White Collar Revolution!

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Fighting Back: The Raw Material

The WOW Project!

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“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

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“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

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Brand Inside

Brand You: Distinct …

or Extinct

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DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

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Minimum New Work SurvivalSkillsKit2000

Sense of Humor = N0.1Mastery

Rolodex ObsessionFinishing Skills

Entrepreneurial InstinctCEO/Leader/Businessperson

Mistress of ImprovIntense Appetite for Technology

Groveling Before the YoungEmbracing “Marketing”

Passion for Renewal

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Seminar Y2K/Brand Inside

Message: Distinct … or

Extinct!

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Brand Inside

Brand Talent: The Great War for Talent

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There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

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The Case

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“When land was the scarce resource, nations battled

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

Stan Davis & Christopher Meyer, futureWEALTH

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The Talent Ten

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Obsession! Greatness!

Performance!Pay!

Youth!Diversity!Women!Weird!

Opportunity!Leading Genius!

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1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

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From “1, 2 or 3” [JW] to … “Best talent in each

industry segment to build best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

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2. Greatness

Only The Best!

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Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)

Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH

INITIATIVEE.g.: COO of IKEA to head

international expansion

Ed Michaels, War for Talent (05.17.00)

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3. Performance

Up or out!

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“We believe companies can increase their market cap 50 percent in 3 years. Steve

Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put

more talented, higher paid managers in charge. He increased

profitability from $25 million to $80 million in 2 years.”

Ed Michaels, War for Talent (05.17.00)

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4. Pay

Fork Over!

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“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)

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5. Youth

Grovel Before the Young!

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“The Rise of the Teen Guru”

“They’re brilliant, ambitious, and almost intuitively gifted at technology.

A new generation of whiz kids are gaining unprecedented power and

authority.”

Case in point: Shawn Fanning, 19, Northeastern dropout, Napster founder

Source: Cover story, Brill’s Content, 7-8/00

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6. Diversity

Mess Rules!

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“Where do good new ideas come from?That’s simple! From

differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to

mix ages, cultures and disciplines.”

Nicholas Negroponte

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“Diversity defines the health and wealth of nations in a new century. Mighty is the

mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the

rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps

isolation. It spawns creativity, nourishes the human spirit, spurs economic growth

and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

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7. Women

Born to Lead!

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Women and new-economy

management …

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The New Economy …

Shout goodbye to “command and control”!

Shout goodbye to hierarchy!

Shout goodbye to “knowing one’s place”!

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Women’s Stuff = New Economy Match

Improv skillsRelationship-centric

Less “rank consciousness”Self determinedTrust sensitive

IntuitiveNatural “empowerment freaks” [less

threatened by strong people]Intrinsic [motivation] > Extrinsic

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“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it

easier to meet new people? Who asks more questions in a conversation? Who is a better

listener? Who has more interest in communication skills? Who is more inclined to get involved?

Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &

Susan Kane-Benson

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“Boys are trained in a way that will make

them irrelevant.”

Phil Slater

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It’s Girls, Stupid!

1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in

high-level math and science courses

More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in

higher numbers

Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)

Source: The Atlantic Monthly (May2000)

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8. Weird

The Cracked Ones Let in the Light!

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“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

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9. Opportunity

Make It an Adventure!

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“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”

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10. Leading Genius

It’s All Theater All the Time!

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44 Players = 44 Projects = 44 different success

measures = 44 different styles (of you)

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Insights from 80,000 managers:

“People don’t change much.“Don’t waste time trying to put in

what was left out.“Try to draw out what was left in.

“That is hard enough.”

Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s

Greatest Managers Do Differently

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Mantra2000

Talent = Brand

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Brand Inside

Brand Action:Getting Started … a

Personal Perspective

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The following five slides, as well as slide #85, have comments in

the notes section.

Please use Normal View to access.

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Topic: Boss-free

Implementation of STM /Stuff That

MATTERS!

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I. THE IDEA

“4Fs”: Find a

Fellow Freak

Faraway

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Heart of the Matter

F2F!*

*Freak to Freak … or K2K [Kook to Kook]

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II. BOTTOM LINE

The Enemy!

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Epitaph from Hell … Epitaph from Hell …

Joe T. Jones Joe T. Jones

1942 - 20001942 - 2000

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

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Characteristics of the “Also Rans”

“minimize risk” “respect the chain of command” “support the boss” “make budget”

Source: Fortune on “most admired global corporations” (10/26/98)

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The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

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Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

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Forces @ Work II

The Commodity Trap

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Quality Not Enough!

“Quality as defined by few defects is becoming the

price of entry for automotive marketers

rather than a competitive advantage.”

J.D. Power

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Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

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“The ‘surplus society’ has a surplus of similar companies, employing similar

people, with similar educational backgrounds, working in similar jobs,

coming up with similar ideas, producing similar things, with similar

prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

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Brand Outside

Strategy 1:

Lead the Customer!

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“These days, you can’t succeed as a company if you’re consumer led –

because in a world so full of so much constant change, consumers can’t

anticipate the next big thing.

Companies should be idea-led and consumer-

informed.”Doug Atkin, partner,Merkley Newman Harty

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“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

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Brand Outside

Strategy 2:Use E-Commerce to

Re-invent Everything!

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OVERVIEW

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www.cyveillance.com

08.30.2000/1221AM:

2,461,940,629

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www.cyveillance.com

09.18.2000/0559AM:

2,604,296,483

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19 days, 5 hours, 38 minutes …

+142,355,854

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Tomorrow Today: Cisco!

90% of $20B (=$50M/day)

75% mfg. outsourced; 50% of orders routed to supplier who ships direct

Gross margin:65%; Net margin: 28%

Savings in service and support from customer self-management: $550M

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Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the

Web per se.

Schwab: $25B per week in asset transactions [80% of trades]

[Transition to e.Schwab: Rev. fell, then quickly doubled]

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COMMUNITY!/ COMMUNITY SERVICES!

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Tomorrow Today: Cisco!

90% of $20B; save $550M

C.Sat e >> C.Sat H

Customer Engineer Chat Rooms/Collaborative

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

customer collaboration)

Page 87: Summer 2000 … KOA wires up!

Some Lessons from AOL (Yahoo, etc.) …

Customized InfoCustomer Control

Utility (convenience, speed, control, insta-choice)

Self-created CommunityChat/Sociability!

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B2C Success

“Genuine brand strength”

“Build community”Source: Geoffrey Moore

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CUSTOMER PERSPECTIVE:

D.I.Y./ CONTROL

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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

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Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

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I Can Immediately …

Shop for $1,000,000 homes or $1.95 office supplies, at best price and with best advisors

Manage all my financial dealingsWork with my doc, or world’s best medical experts, or

humble support groups, on any health issueRecruit talent to help me with any project

Develop professional docs collaboratively, with anyoneShare my ideas with the worldChat with anyone, anywhere

Research anythingTake a course on any topic, from cooking to software

Stay in touch with my 90 year old momPlay a gajillion games to while away the time

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Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

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“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 Nordstrom and Jonas Ridderstrale, Funky Business

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RADICAL STRATEGIES

REQUIRED

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“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

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“One cannot be tentative about this. Excuses like ‘channel

conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you

never heard of 24 months ago.”

Jack Welch [07.00/Forbes.com]

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SUMMARY: REINVENT

EVERYTHING

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WebWorld = Everything

Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry

Web/B2B as ultimate wake-up call to “commodity producers”

Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data

Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)

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

as next door neighbor

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“It” is real! It is “Life and Death”!Dream BIG!

Start Now! Study Hard! Play Hard! Play Fast! Go on Offence!

Hire great folks! (They ain’t cheap. They are young!)

Don’t cut corners on infrastructure!

Rem: “Age of the Never Satisfied Customer”!

We ain’t seen nothin’ yet!

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“Banking is

necessary. Banks are not.”

Dick Kovacevich, Norwest/ Wells

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Brand Outside

Strategy 3: Fighting Back via

Systems Integration!

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THE CASE

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GM/Ford/DaimlerChrysler (02-27)

Covisint$240B (+$500B)

I.P.O.

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Solectron, IBM, Nortel, Matsushita, Seagate, Etc.

E2Open.com

$700B

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Goal?

Drive profits to zero!*

*Remember AMR and “dynamic pricing.”

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“Net Nips Real Estate Sales Fees”

Headline, p.1B, USAToday 07.05.00*

*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

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Message: “BOX” SELLERS LOSE!

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THE RESPONSE

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Message I: Racing up the V.A. Ladder. Doing More & More … & More & More &

More … for/with the Customer and the Supply-

Demand Chain!

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09.11.2000: HP bids $18,000,000,000

for PricewaterhouseCoopers

IT consulting bus!

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“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

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Defense-Offense: Systems Integration/HVA

Delphi, DanaUnited Technologies,

Corning, GE, Sun, Carpet One, Bud …

[Anybody in their right mind!]

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E.g. …

GE: boxes [transformers, etc.] to “air traffic controllers of electrons”

UTC/Otis + Carrier: boxes to “integrated building systems”;

P&W, etc.: boxes to major aircraft subsystems

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“Customer Satisfaction” to “Customer Success”

“We’re getting better at [Six Sigma] every day. But we really

need to think about the customer’s profitability. Are customers’

bottom lines really benefiting from what we provide them?”

Bob Nardelli, GE Power Systems

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Brand Outside

Strategy 4:

It’s the Experience!

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“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

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“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

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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

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“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

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Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

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Brand Outside

Strategy 5:

Women Rule!

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?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

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48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

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Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

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$4.8T > Japan

9/27.5/3.6T > Germany

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Yeow!

1970 … 1%

2002 … 50%

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OPPORTUNITY

NO. 1!

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Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

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FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

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Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

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Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

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“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 carefully and hold on for the long term)

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How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

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Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

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EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

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“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

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Weight Watchers International “Model”

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

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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 ‘let’s 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

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Not a Morality Play!

“It is critical that we all understand that IBM is not marketing to women

entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge

opportunity.”

Cherie Piebes

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“What kind of car does Mommy want?”

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27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

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THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS

SEMINAR. [PLEASE: THINK ABOUT IT!]

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Brand Outside

Strategy 6 & Summary:

BRAND POWER!

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Brand It! Now, More Than Ever!

“The increasing difficulty in differentiating between products and

the speed with which competitors take

up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant, Management [New Zealand]

Page 146: Summer 2000 … KOA wires up!

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.

Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions

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

myths. Companies will need to understand that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

Page 147: Summer 2000 … KOA wires up!

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, Tom’s of Maine

Page 148: Summer 2000 … KOA wires up!

Message: You are not “ad salespeople.” YOU ARE

… FULL-SCALE PARTNERS IN THE

INTEGRATED BRAND-BUILDING PROCESS!

Page 149: Summer 2000 … KOA wires up!

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Page 150: Summer 2000 … KOA wires up!

Brand Leadership

Passion Rules!

Page 151: Summer 2000 … KOA wires up!

“Leadership is a performance. You have to be

conscious of your behavior, because everybody else is.”

Carly Fiorina

Page 152: Summer 2000 … KOA wires up!

Brand Leadership!

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

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Page 153: Summer 2000 … KOA wires up!

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

Page 154: Summer 2000 … KOA wires up!

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander


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