Tom Peters 2002 We Are In A Brawl

Tom Peters’ 2002 We Are In A Brawl With No Rules! Farmers/01. 11. 2002

“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. 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 it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation. ”—Martin Feinstein, CEO, Farmers Group

TP 2002: GE Industrial Systems. Farmers. Message I: Same-same kills. Go way up the VA Chain. (Or else. ) Transformation or bust: Fullservice/ solutions provider. Great rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same space. Mr. Darwin is on the prowl!)

Diversity Marketing … Communities of Interest … Bank of America relationship … specialized acquisitions … Farmers Agency Dashboard … Help. Point … licensed financial planners … etc.

A Brawl With No Rules.

All Slides Available at … tompeters. com Note: Lavender text in this file is a link.

“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

1 day 2001 = Year’s trade in 1949, year’s FEX in 1979, year’s global calls in 1984. Source: Charles Handy, The Elephant and the Flea

<1000 A. D. : paradigm shift: 1000 s of years 1000: 100 years for paradigm shift 1800 s: > prior 900 years 1900 s: 1 st 20 years > 1800 s 2000: 10 years for paradigm shift 21 st century: 1000 X tech change than 20 th 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

TP/12. 01: 7 Rules for Leading/THRIVING in a Recession+ 1. It’s ALREADY too late. 2. Show up & tell the truth—CREDIBILITY rules. 3. Kill with KINDNESS. 4. Sharp pencils are imperative—but don’t forget that the CUSTOMER & our TALENT & RISKY INVESTMENTS are still our long-term Bread & Butter. 5. Everything’s different, everything’s the same—it’s the NEW ECONOMY, more than ever, stupid! 6. “Use” the trauma to mount the bold initiatives you should have long before mounted: Flux = OPPORTUNITY. 7. We’re in a War of Organizational Models—from retail to the Pentagon. IDEAS MATTER MOST.

New Org I: A White Collar Revolution.

108 X 5 vs. 8 X 1 = 540 vs. 8 (-98. 5%)

“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

IBM’s Project e. Liza!

New Org II: IS/IT … “On the Bus” or “Off the Bus. ”

Cisco! 90% of $20 B (=$50 M/day) Annual savings in service and support from customer self-management: $550 M (P. S. : C. Sat e >> C. Sat h)

Secret Cisco: Community! Customer Engineer Chat Rooms/Collaborative Design ($1 B “free” consulting) (45, 000 customer problems a week solved via customer collaboration)

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

“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. ”)

Anne Busquet/ American Express Not: “Age of the Internet” “Age of Customer Control” Is:

Amen! “The Age of the Never Satisfied Customer” Regis Mc. Kenna

One Person’s 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!!

“CRM has, almost universally, failed to live up to expectations. ” Butler Group (UK)

CGE&Y (Paul Cole): “Pleasant “Systemic Opportunity. ” “Better job of what we do today” vs. “Rethink overall enterprise strategy. ” Transaction” vs.

Web. World = Everything Web as a way to run your business’s innards Web as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry Web/B 2 B 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 entrée, at any size, to World’s Best at Everything as next door neighbor

New Org III: The … SOLUTIONS IMPERATIVE.

Animating Force: The Sameness Trap

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

“While everything may it is also increasingly the same. ” be better, Paul Goldberger on retail, “The Sameness of Things, ” The New York Times

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

“Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to. ” Leading Insurance Industry Analyst

The Big Day!

09. 11. 2000: HP bids $18, 000, 000 for Pricewaterhouse. Coopers consulting business!

“These days, building the best server isn’t enough. That’s the price of entry. ” Ann Livermore, Hewlett-Packard

“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. 5 M Ford vehicles, from 21 mfg. sites to 6, 000 NA dealers)

“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

New Springs = Sheets & Towels to Turnkey Collections. Flexible sourcing. Packaging. Merchandising. Promotion. Systems & Site mgt.

Omnicom: 57% (of $6 B) from marketing services

Who was the number one employer of architecture school grads in the U. S. last year?

“We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm. ” Jean Bellas, founder, SPACE (from SMPS Marketer)

“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. ” (12. 16. 2001) –New York Times

Bottom Line: The … Solutions Imperative

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 it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation. ”—Martin Feinstein, CEO, Farmers Group

TP 2002: GE Industrial Systems. Farmers. Message I: Same-same kills. Go way up the VA Chain. (Or else. ) Transformation or bust: Fullservice/ solutions provider. Great rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same space. Mr. Darwin is on the prowl!)

Re-inventing the Individual.

“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

“My ancestors were printers in Amsterdam from 1510 or so until 1750 … and during that entire time they didn’t have to learn anything new. ” Peter Drucker, Business 2. 0 (08. 22. 00)

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 don’t businesspeople do it [very much]?

Invent. Reinvent. Repeat. Source: HP banner ad

Brand = Talent

Sports Franchise GM Model 24/7*: *25/8/53

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)

Message: Some people are better than other people. Some people are a helluva lot better than other people.

“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

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

“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

“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

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

Mantra. M 3 Talent = Brand

Speaking of … Women.

Women & the Marketspace.

? ? ? ? ? Home Furnishings … 94% Vacations … 92% Houses … 91% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80%

2/3 rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500 K 95% financial decisions/ 29% single handed

$4. 8 T > Japan 9 M/27. 5 M/$3. 6 T > Germany

OPPORTUNITY NO. 1!

Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

Female. Think/ 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. ”

Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t 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 Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s 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 Don’t Listen & Women Can’t 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 Don’t Listen & Women Can’t Read Maps

“Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. They are excellent at imitating animal sounds. ” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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

“Women don’t buy brands. They join them. ” EVEolution

“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 women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that women’s 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

27 March 2000: email to TP from Shelley Rae Norbeck “I make 1/3 rd 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!”

It all adds up to … THE BRAND.

“WHO ARE YOU [these days] ? ” TP to 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 skeptical Client!

The Heart of Branding …

“WHO ARE WE? ”

“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT? ”

1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing. ” Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE Source: Jump Start Your Business Brain, Doug Hall

“ WHY DOES IT MATTER TO THE CLIENT? ”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ”

“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

TP 2002: GE Industrial Systems. Farmers. Message I: Same-same kills. Go way up the VA Chain. (Or else. ) Transformation or bust: Fullservice/ solutions provider. Great rep … but … NOBODY OWNS THE SPACE. Message II: All dogs must learn … lotsa … new tricks. (Bad news: Everybody’s after the same space. Mr. Darwin is on the prowl!)

Thank You !