Tom Peters’ Marketing@Microsoft: We Are [Still] in a Brawl with No Rules Seattle/01.24.2003

1. Tom Peters’ Marketing@Microsoft: We Are [Still] in a Brawl with No RulesSeattle/01.24.2003

2. Thank You & Godspeed!

3. Slides at …tompeters.com

4. “We are in abrawl with no rules.”Paul Allaire

5. “IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …“Al-Qaeda represents a new and profoundly dangerous kind of organization—one that might be called a ‘virtual state.’ On September 11 a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

6. “The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. …“ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy and slow.’ ”—The New York Times/09.04.2002

7. From: Weapon v. WeaponTo:Org structure v. Org structure

8. Eric Shinseki’s [New] ArmyInfo-intense.Network-centric.Flat.Fast.Agile.Adaptable.Light but Lethal.Talent-driven/ “I Am An Army Of One.”

9. “Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002

10. “If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart,where point-of-sale-scanners share information on a near real-time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.”—Tom Stewart, Business 2.0

11. 1. The Destruction Imperative.

12. “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”—Bill Gates

13. 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

14. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.”—Financial Times/11.28.2002

15. “It’s just a fact: Survivors underperform.”—Dick Foster

16. The Seven Deadly SinsArroganceArroganceArroganceArroganceArroganceArroganceArrogance

17. 2. IS/ IT/ Web: It’s the Organization, Stupid

18. “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 & René Tissen, Zero Space: Moving Beyond Organizational Limits.

19. “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

20. “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

21. “Don’t rebuild. Reimagine.”The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002

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

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

24. 3. The Heart of the Value- Added Revolution: The “Solutions Imperative.”

25. 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).

26. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

27. “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

28. Keep In Mind: Customer Satisfactionversus Customer Success

29. 4. A World of Scintillating/ Awesome “Experiences.”

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

31. “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

32. “Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ”Source: Jean-Marie Dru, Disruption

33. 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

34. WHAT CAN BROWN DO FOR YOU?

35. 5. “It” all adds up to … THE BRAND.

36. “WHO ARE WE?”

37. “WHAT’S OUR STORY?”

38. “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

39. BIBO: “You must be the change you wish to see in the world.”Gandhi

40. “The events of the last four years and the changes in our industry make this a good point to take stock of ourselves and our mission, to understand how others perceive us, and to think about how we can do a better job explaining who we are and what matters to us. Many of us feel a disconnect in the way we see ourselves and our mission and motives, and the way we are portrayed, and only we can change that.” —Steve Ballmer/NY Times Magazine/11.24.2002

41. 6. Boss Job One: The Talent Obsession.

42. Talent!Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.”Source: Business2.0/12.2002-01.2003

43. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.”Warren Bennis & Patricia Ward Biederman, Organizing Genius

44. “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

45. 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

46. 7. Trends I: Women Roar.

47. ?????????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%)Allconsumerpurchases … 83%Bank Account … 89%Health Care … 80%

48. 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”)Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

49. Women's View of Male SalespeopleTechnically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to women’s needs.Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

50. Initiate PurchaseMen: Study “facts & features.”Women: Ask lots of people for input.Source: Martha Barletta, Marketing to Women