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Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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Page 1: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Tom’s 60TIBs*

*TIB = This I Believe

Version: 08.30.2002

Page 2: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief

of Staff, U.S. Army

Page 3: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

1. TECHNICOLOR RULES! (Passion Moves Mountains!)2. Audacity Matters!3. Revolution Now!4. Question Authority! (& Hire & Cherish & Promote Disrespectful People.) 5. Disorganization Wins! (LOVE THE MESS!)

Page 4: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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

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No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Page 6: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Just Say No …

“I don’t intend to be known as the ‘King of

the Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

Page 7: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

Page 8: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

!

Page 9: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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

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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.

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If you’re not pissing people off, you’re not making

a difference!

Page 12: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“I’m not happy unless

I’m uncomfortable.”—Jay Chiat

Page 13: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

Page 14: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

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“Organize” for … performance & customer satisfaction.

“Disorganize” for … renewal & innovation.

Page 16: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“In Italy for 30 years under the Borgias they had warfare, terror, murder,

bloodshed—and 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”

Page 17: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

6. Think 3M: Markets Matter Most. ONLY EXTREME COMPETITION STAVES OFF STALENESS. (You can take the boy out of Silicon Valley, but you can’t 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, Bio-sciences) Is in Its Infancy! (WE AIN’T 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.)

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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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“I genuinely believe we are living through the greatest intellectual moment in history.”

Matt Ridley, Genome

Page 21: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

Page 22: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“When asked to name just one big merger that had lived up to expectations, Leon

Cooperman, former cochairman of Goldman Sachs’ Investment Policy

Committee, answered: I’m sure there are success stories

out there, but at this moment I draw a blank.”

Mark Sirower, The Synergy Trap

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“Conglomerates don’t work” —James

Surowiecki, The New Yorker (07.01,2002)

Page 24: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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

Page 25: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Deviants, Inc. “Deviance tells the story of every mass

market ever created. What starts out weird and dangerous

becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way

out there.”

Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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11. “Permanence” Is a Snare & a Delusion. (Forget “Built to Last.” It’s Yesterday’s 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.)

Page 27: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Jim & Tom. Joined at the

hip. Not.

Page 28: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Built to Last v. Built to Flip

“The problem with Built to Last is that it’s 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)

Page 29: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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)

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W.A. Mozart W.A. Mozart 1756 – 17911756 – 1791

HE CHANGED THE WORLDHE CHANGED THE WORLD

AND AND

ENRICHED HUMANITY ENRICHED HUMANITY

Page 31: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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

Page 32: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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

Page 33: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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 Innovator’s Dilemma

Page 34: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

Page 35: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

CUSTOMERS: “Future-defining customers may

account for only 2% to 3% of your total, but they represent a crucial

window on the future.”Adrian Slywotzky, Mercer Consultants

Page 36: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

COMPETITORS: “The best swordsman in the world doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t

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

Page 37: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Employees: “Are there enough weird

people in the lab these days?”

V. Chmn., pharmaceutical house, to a lab director (06.01)

Page 38: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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

Page 39: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Leaders know … WE BECOME WHO

WE HANG WITH!

Page 40: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Message: TAKE

SOMEONE NEW & WEIRD TO LUNCH

TODAY OR TOMORROW. [Inundate yourself with weird.]

Page 41: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

The [New] Ge Way

DYB.com

Page 42: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

16. Boring Begets Boring. (Cool Begets Cool.)17. Think “Portfolio.” (We’re All V.C.s.)18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism of What They’re 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!

Page 43: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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!)

Page 44: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“If it works, it’s

obsolete.”

—Marshall McLuhan

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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.)

Page 46: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Sam’s

Secret #1!

Page 47: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“Fail faster. Succeed sooner.”

David Kelley/IDEO

Page 48: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Fail. Forward. Fast. –High-tech Exec

Page 49: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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)

Page 50: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Read This!

Richard Farson & Ralph Keyes: Whoever Makes the Most

Mistakes Wins: The Paradox of Innovation

Page 51: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

Page 52: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“You can’t 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

Page 53: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

From “1, 2 or you’re out” [JW] to …

“Best Talent in each industry segment to build

best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

Page 54: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

Page 55: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

25/8/53*(*Damn it!)

Page 56: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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

Page 57: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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 child—let alone our child—receive a poor

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ”Jordan Ayan, AHA!

Page 58: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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 Fool’s Guide to Surviving with Grace

Page 59: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

26. Diversity’s 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. (Message: TRILLIONS OF $$$$$ Are at Stake.) (Message: NOBODY … Gets It.) (Message: 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.)

Page 60: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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

Page 61: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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

Page 62: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

CM Prof Richard Florida on

“Creative Capital”: “You cannot get a technologically

innovative place unless it’s open to weirdness,

eccentricity and difference.”

Source: New York Times/06.01.2002

Page 63: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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

Page 64: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Women’s 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, America’s Competitive Secret

Page 65: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

?????????

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%

Page 66: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

2/3rds working women/50+% working wives > 50%

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Page 67: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“Honey, are you sure you have

the kind of money it takes to

be looking at a car like this?”

Page 68: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

Page 69: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

50+

$7T wealth (70%)/$2T annual income50% all discretionary spending

79% own homes/40M credit card users41% 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

Page 70: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“Marketers attempts at reaching those over 50 have been miserably

unsuccessful. No market’s motivations and needs

are so poorly understood.” —Peter Francese,

founding publisher, American Demographics

Page 71: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“ ‘Age Power’ will rule the 21st century, and we are woefully

unprepared.”Ken Dychtwald, Age Power: How the 21st

Century Will Be Ruled by the New Old

Page 72: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

And #3: GREEN?????: 50% to 36%: Protect Environment >

Economic Growth.

58% to 34%: Protect Plants & Animals > Preserve Private

Property Rights.

Page 73: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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.

Page 74: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

No: “Target Marketing”

Yes: “Target

Innovation” & “Target Delivery Systems”

Page 75: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

HealthCare21

Page 76: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

HealthCare21: 21 Ideas for Century211. Hospitals kill people. (And many of those they don’t kill, they wound.) (And they deny it.) (ERRORS RULE!) And: Hustling ambulances kill pedestrians—and don’t save patients.2. Doctors are spoiled brats—who don’t like measurements. Or any form of “interference.” Docs are also cover-up artists. The REAL Hippocratic Oath: “DON’T RAT ON A FELLOW DOC”. 3. Most prescription drugs don’t work—for 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 Schlindler)—if you just outlawed handwritten prescriptions.7. “Detailers” will disappear … when GenX docs arrive.

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HealthCare21 (Cont.) 8. IS/IT in hospitals is sub-primitive (despite enormous expenditures). 9. Systemic IS/IT is worse—links 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.

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HealthCare21 (Cont.)15. The number of U.S. un-insured is the nation’s #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.)

* *

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HealthCare21 (Cont.)

21. ALL THIS = ENORMOUS OPPORTUNITY. The

Opportunity of Several Lifetimes. (For the Bold & Brave.) H’Care WILL be … TOTALLY … re-invented in the next two decades. (And, hey, it is our largest “industry.”)

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The Big Day!

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09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

Page 82: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“These days, building the best server isn’t enough. That’s the

price of entry.”

Ann Livermore, Hewlett-Packard

Page 83: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Gerstner’s IBM: Systems Integrator of

choice. Global Services:

$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,

aim for 200. Drop many in-house

programs/products. (BW/12.01).

Page 84: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

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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

Page 86: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Keep In Mind: Customer

Satisfaction versus

Customer

Success

Page 87: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

“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)

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“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 it’s financial security, buying a car, paying

for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,

Farmers Group

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A World of Scintillating/

Awesome/ WOW “Experiences.”

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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

Page 91: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

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

Page 92: Tom’s 60TIBs* *TIB = This I Believe Version: 08.30.2002

Bob Lutz: “I see us as being in the art business. Art,

entertainment and mobile sculpture, which,

coincidentally, also happens to provide transportation.”

Source: NYT 10.19.01

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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

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WHAT CAN BROWN DO FOR YOU?

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31. DESIGN = New Seat of the Soul. 32. Branding Is for … EVERYONE. He Who Has the … BEST STORY … Takes Home (All) 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?”)

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Design Transforms even the [Biggest] Corporations!

TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”

(Advertising Age)

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All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

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“Design is treated like a religion at

BMW.”Fortune

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“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul

of a man-made creation.”

Steve Jobs

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Bottom Line.

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Design “is” … WHAT & WHY I LOVE.

LOVE.

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Design “is” … WHY I

GET MAD. MAD.

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Design is never neutral.

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Hypothesis: DESIGN is the principal difference between love and

hate!

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“Early in my career in the law I learned

that … he who has the best story

wins.”JQ Adams/A Hopkins to T Joadson/M Freeman

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“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

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

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

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“Stories of identity – narratives that help individuals think about

and feel who they are, where they come from, and where they

are headed – constitute the single most powerful weapon

in the leader’s arsenal.”Howard Gardner, Leading Minds: An Anatomy of Leadership

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“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the

message, the story line, the Big Idea that makes ‘it’ all hang together?” —Exec,

major consumer goods company

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“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

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“You must be the change you

wish to see in the world.”

Gandhi

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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 Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to

5%)

Source: Jump Start Your Business Brain, Doug Hall

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“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 Nordström and Jonas Ridderstråle, Funky Business

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Funky Business: “To succeed we must stop being so goddamn

normal. In a winner-takes-all world,

normal = nothing.”

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“We make over three new product announcements a

day. Can you remember

them? Our customers can’t!”Carly Fiorina

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“When we did it ‘right’ it was still pretty ordinary.”

Barry Gibbons on “Nightmare No. 1”

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“Customers will try ‘low cost

providers’ … because the Majors have not

given them any clear reason not to.”

Leading Insurance Industry Analyst

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Language

matters!

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“We shape our buildings. Thereafter

they shape us.”—WSC

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“We shape our words. Thereafter

they shape us.”—TJP

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“Let’s make a dent in the universe.”

Steve Jobs

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Language matters! Wow! BHAG! “Takes

your breath away!”

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“Astonish me!” / S.D.

“Build something great!” / H.Y.

“Immortal!” / D.O.

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“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

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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: (Crappy) Cross-functional Communication.40. Stop Doing Dumb Shit. (SYSTEMATIZE THE PROCESS OF “UN-DUMBING.”)

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100 square feet

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WebWorld = Everything

Web as a way to run your business’s 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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Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

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Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction-freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

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“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

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Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

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Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

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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 Nordström and Jonas Ridderstråle, Funky Business

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“There’s no use trying,” said Alice. “One can’t believe impossible things.”

“I daresay you haven’t had much practice,” said the Queen. “When I was

your age, I always did it for half an hour a day. Why, sometimes I’ve

believed as many as six impossible things before breakfast.”

Lewis Carroll

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I’net …

… allows you to dream dreams

you could never have dreamed

before!

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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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“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 &

Rene Tissen, Zero Space: Moving Beyond Organizational Limits.

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“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 don’t

talk to each other.”Boston Globe (09.30.2001)

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“Supply Chain” 2000:

“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized

home page. He can interact with the entire scope of Company X’s 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 don’t 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)

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Innovation & Speed’s “New Basics”*

1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems.” IS—at home & throughout supply chain. Web based.6. F-L-A-T.

*Innovation, Speed, CRM, “Experience”/ “Solution” demand this

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[ 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]

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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.

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Fred S.’s “mediocre” thesis. Herb K.’s

napkin.

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Systems: Must have. Must

hate. / Must design. Must un-

design.

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Mgt. Team

includes … EVP (S.O.U.B.)

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Executive Vice President, Stomping Out Unnecessary Bullshit

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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.

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E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

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IBM’s Project

eLiza!** “Self-bootstrapping”/ “Artilects”

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“Unless mankind redesigns itself by changing our DNA through altering our genetic

makeup, computer-generated robots will take

over the world.” – Stephen

Hawking, in the German magazine Focus

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THE I work for a company called

Me STREET JOURNAL

Adventures in Capitalism

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THE rise up and flee your cubicle STREET JOURNAL

Adventures in Capitalism

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New World of Work

< 1 in 10 F500#1: Manpower Inc.

Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27M

Total: 31M-55MSource: Daniel Pink, Free Agent Nation

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“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 SurvivalSkillsKit2002

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

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Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].– My current Project is challenging me …– New things I’ve 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 year’s at this time …

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T.T.D./Assignment

Construct a 1/8-page or 1/4-page ad for

Brand You … for the Yellow Pages

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“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

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“When was the last time you asked,

‘What do I want to be?’ ” Sara Ann Friedman, Work Matters

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“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

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Bill Parcells’ World/ Brand You World!

BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!

NY Post (9/99)

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“Nobody gives you power. You just take it.”—Roseanne

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“ ‘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

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Kurt Carlson to young Marilyn

Carlson: “If you don’t like Sunday School,

change it!” (She did.)

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Brand You, Big Time!

I AM AN ARMY OF

ONE

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World’s Biggest Waste …

Selling “Up”

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THE IDEA: Model F4

Find a Fellow

Freak Faraway

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F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.

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46. EXCELLENCE … Is a State of Mind. (Excellence Takes a Minute.) (No Bull.)47. SHOW UP! (If You Care, You’re There.)48. YOUR CALENDAR KNOWS ALL. (You = Calendar.) (Mind Your “TO DON’T” List.)49. LIFE IS SALES. (The Rest Is Details.)50. Boss Mantra #1: “I DON’T KNOW.” (“I Don’t Know” = Permission to Explore.)

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What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

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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 Now!Culture Change

Lives in the Moment!Culture Change is

Entirely in Your Hands!

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Rudy!

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P.S. …

Mark McCormack: 5,000 miles for a 5

min. meeting!

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“To Don’t ” List

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Danger: S.I.O. (Strategic

Initiative Overload)

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TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”) (See TP’s The Project50.)

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The Sales25: Great Salespeople …

1. Know the product. (Find cool mentors, and use them.)

2. Know the company.3. Know the customer. (Including the customer’s 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 customer’s org. (Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

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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 money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if 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.)

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Great Salespeople …

12. Think “Turnkey.” (It’s 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 vendor’s 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 that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s 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 upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.

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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 E-NOTES.) (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!

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“I don’t know.”

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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 Wouldn’t Let Him.”53. Change Takes However Long You Think It Takes. (Eschew … “Incrementalism.”)54. Respect! (Rule 1: Don’t Belittle!)55. “Thank You” Trumps All!

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“Ninety percent of what we call ‘management’ consists of making it

difficult for people to get things done.” – P.D.

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Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002

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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“It was much later that I realized Dad’s 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

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“It is impossible to claim that all good teachers use similar techniques: some lecture nonstop

and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. ‘Dr. A is really there when he teaches.’ ‘Mr. B has such enthusiasm for his subject.’ ‘You can tell

that this is really Prof. C’s life.’ ”

Parker Palmer, The Courage to Teach

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“The deepest human

need is the need to be appreciated.”

William James

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“The two most powerful things

in existence: a kind word and a thoughtful gesture.”

Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

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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.)

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“Soft” Is “Hard”

- ISOE

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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. TP’s final words: CYNICISM SUCKS.]

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BZ: “I am a … Dispenser of Enthusiasm!”

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“A leader is a dealer in hope.”

Napoleon

(+TP’s writing room pics)

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Hackneyed but none the less

true: LEADERS SEE CUPS AS “HALF

FULL.”

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Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

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“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under

fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

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Rodale’s on “Grace” …

elegance … charm … loveliness … poetry in motion … kindliness ..

benevolence … benefaction … compassion … beauty

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The End.