Re-imagine2005: The “psf” Is Everything! (Or: Making the psf a “Lovemark” in an Age of “Managed Asset Reflation”) Tom Peters/01. 13. 2005

Re-imagine2005: The “PSF” Is Everything! (Or: Making the PSF a “Lovemark” in an Age of “Managed Asset Reflation”) Tom Peters/01.13.2005

“One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.” Source: The Straits Times/08.18.03

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

“Them.”

And the Winner is … 1. Audacity of Vision 2. Innovation/R&D/Design 3. Talent Acquisition & Development 4. Resultant “Experience” 5. Strategic Alliances 6. Operations 7. Financial Management 8. Overall/Sustaining Excellence 9. “Wow!” 10. Lovemark!

Cirque du Soleil!

My Favorite Term!

“PSF”

FBR!

I Borrowed Your Watch: Here’s What Time It Is Make a Difference Add Exceptional Value Enduring Relationships with Companies that Have the Potential to Be Great After-market Performance Focus/Strong Sectoral Approach Focus/Underserved Middle Market/Mid-cap Cos Dramatic Difference Research Roots Research Investment Unique Analytic Process Highly Disciplined Fundamental Intrinsic Value Analysis Partnership Culture Mutual Support Enthusiasm Make a Difference D.C. as D.C. D.C. as not Wall Street Visibility/Tell Story/Brand

FBR: Fundamental Intrinsic Value Analysis Focus (You know what you’re doing) Difference (You know how you’re doing it) Culture (You understand the roots)

Infosys!

Infosys/Planet-warping Aspirations … “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report 2003

+49%/profits +52%/revenue Source: WSJ/10.13.2004/“Infosys 2nd-Period Profit Rose Amid Demand for Outsourcing”

Cirque du Soleil FBR Infosys IBM UPS GE McKinsey Nancy Dean Bob Zang Fred Free Agents/Brand Yous Bill Murray The Photo Dept @ London Drug Kevin Carroll/Rules of the Red Rubber Ball Rajesh Setty/BEYOND CODE

The Case Writ Large.

“About a year ago I hired a developer in India to do my job. I pay him $12,000 to do the job I get paid $67,300 for. He is happy to have the work. I am happy that I only have to work about 90 minutes per day (I still have to attend meetings myself, and I spend a few minutes every day talking code with my Indian counterpart.) The rest of my time my employer thinks I’m telecommuting. They are happy to let me telecommute because my output is higher than most of my coworkers. Now I’m considering getting a second job and doing the same thing with it. That may be pushing my luck though. The extra money would be nice, but that could push my workday over five hours.” —from posting at Slashdot (02.04.04), reported by Dan Pink

No Limits? “Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy” —Headline, New York Times/06.13.04 (“Special intentions,” $.90 for Indians, $5.00 for Americans)

!!!!!! IBM-Lenovo

26m

43h

35/70

“One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.” Source: The Straits Times/08.18.03

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

“A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

“We’re now entering a new phase of business where the group will be a franchising and management company where brand management is central.” —David Webster, Chairman, InterContinental Hotels Group “InterContinental will now have far more to do with brand ownership than hotel ownership.” —James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance

The White Collar Tsunami and the Professional Service Firm (“PSF”) Imperative.

E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW (01.28.02)

CompleteCase.com ($249 vs $3,000) USLegalForms.com TurboTax.com YourDiagnosis.com

Sarah: “ Papa, what do you do?” Papa: “I’m ‘overhead.’ ”

Sarah: “ Papa, what do you do?” Papa: “I manage a ‘cost center.’ ”

Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.

“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that. We pay for ourselves, and we actually make money for the company.” —Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)

Mantra: “Eichorn it!”

Eichorning Mantra: “We’re Eichorning”

eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

Model PSF …

(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.” (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!

What “Organization”?

“Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy

07.04/TP In Nagano … Revenue: $10B FTE: 1* *Maybe

“Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.

Not “out sourcing” Not “off shoring” Not “near shoring” Not “in sourcing” but … “Best Sourcing”

“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

Re-imagine Tomorrow’s Organizations: Itinerant Potential Machines.

TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to “make their bones” in “the revolution.” Love the new technologies. Well rewarded. Don’t plan to be around 10 years from now.

TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often needed). “We aim to change the world, and we need gifted colleagues—who well may not be on our payroll.”

BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I don’t know”—and then unleash the TALENT. Have a vision to be DRAMATICALLY DIFFERENT—but don’t expect the co. to be around forever. Will scrap pet projects, and change course 180 degrees—and take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON “ME TOO” PRODUCTS AND PROJECTS.

BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) “Visionary” leaders matched by leaders with shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?” Appreciate “market creation” as much as or more than “market share growth.” ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Case. Etc.)

ALLIANCE MANIACS. Don’t assume that “the best resides within.” WORK WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE END OF THE “SUPPLY CHAIN” TO THE OTHER. Including vendors and consultants and … especially … PIONEERING CUSTOMERS … who will “pull us into the future.”

TECHNOLOGY-NETWORK FANATICS. Run the whole-damn-company, and relations with all outsiders, on the Internet … at Internet speed. Reluctant to work with those who don’t share this (radical) vision.

POTENTIAL MACHINES-ORGANISMS. Don’t know what’s coming next. But are ready to jump at opportunities, especially those that challenge-overturn our own “way of doing things.”

PSFs Unbound: Everybody’s Doin’ It!

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

09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

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

And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.” (BW) IBM Global Services: $35B

“P&G Hires Out Employee Services to IBM” —Burlington Free Press/09.10.03/ on IBM’s 10-year, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June)

Rainmaker-in-Chief “[Sam] Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year—that technology companies have never been able to touch.” —Fortune/06.14.04

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/07.19.2004

“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)

“SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank Source: Fast Company/02.04

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

New York-Presbyterian: 7-year, $500M consulting (generic) and equipment contract with GE Medical Systems Source: NYT/07.18.2004

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

“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

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

Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”). Source: USA Today/06.14.2002

John Deere Landscapes: “This is our future.”

Staples New CEO Ron Sargent: 2X to $20B, in face of Wal*Mart (et al.) via delivery and other services Source: BusinessWeek/08.03

E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”

Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on “crown jewel” handsets 5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal” Source: BW/11.04.02

Flextronics --$14B; 100K employees; 60% p.a. growth (’93-’00) -- “contract mfg” to EMS/Electronics Manufacturing Services (design, mfg, logistics, repair); “total package of outsourcing solutions” (Pamela Gordon, Technology Forecasters) -- “The future of manufacturing isn’t just in making things but adding value” (3,500 design engineers) Source: Asia Inc./02.2004

“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.” –New York Times (12.16.2001)

“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

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

“We’re now entering a new phase of business where the group will be a franchising and management company where brand management is central.” —David Webster, Chairman, InterContinental Hotels Group “InterContinental will now have far more to do with brand ownership than hotel ownership.” —James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

Moving to … “SX” World: Create Scintillating eXperiences.

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

“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

“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

“Guinness as a brand is all about community. It’s about bringing people together and sharing stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse

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

2/503Q04

Build-A-Bear --1997 to 2004: $0 to $300M --Maxine Clark/CEO (25 yrs May Dept Stores) --Build-A-Bear Workshops --Engagement! (“Where Best Friends Are Made”) --http://www.buildabear.com/buildaparty

Experience Ladder Experiences Services Goods Raw Materials

The “Experience Ladder”/TP Experiences Solutions Services Goods Raw Materials

WHAT CAN BROWN DO FOR YOU?

1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.00 1990: Party @ Chuck E. Cheese (experience economy) $100.00

“Motown Is Stealing Hollywood’s Best Tricks … With Oprah’s 276-car giveaway all over the news last week, GM got just what it wanted: a blockbuster debut [for its ‘unheralded Pontiac G6’].” Source: Newsweek/09.27.04 (Cost: $7 million … “A car that gets off to a slow start has little hope of ever losing the stigma of distressed merchandise.”)

Now You’ve Heard It All … “We want our branches to be a place where people come as a destination.” —Amy Brady, on the BofA effort to learn from Starbucks and Gap (“The Fun Factor”/The Boston Globe/08.30.04

LAN Installation Co. to Geek Squad (2% to 30%/Minn.)

It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional” Trapper: <$20 per beaver pelt. WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ/05.21.2002

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

Moving Companies WSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and wine. An outfit in New York promises quick high-speed Internet hookup. And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui expert figure out the right spot. …”

One company’s answer: CXO* *Chief eXperience Officer

“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

Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion

Scaling the Heights: Becoming “DreamMerchants.”

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

The Marketing of Dreams (Dreamketing) Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz,” the “hype,” the “cult.” Source: Gian Luigi Longinotti-Buitoni

“The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.” — from the Ritz-Carlton Credo

Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions

HORCHOW.COM Furniture. Accessories. Dreams.

Safe, On-time and ... “We defined personality as a market niche. We seek to amaze, surprise, entertain.” — Herb Kelleher, SWA / LUV

“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

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

“In Denmark, eggs from free-range hens have conquered over 50 percent of the market. Consumers do not want hens to live their lives in small, confining cages. They are willing to pay 15 percent to 20 percent more for the story about animal ethics. This is classic Dream Society logic. Both kind of eggs are similar in quality, but consumers prefer eggs with the better story. After we debated the issue and stockpiled 50 other examples, the conclusion became evident: Stories and tales speak directly to the heart rather than the brain. After a century where society was marked by science and rationalism, the stories and values are returning to the scene.” —Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

Six Market Profiles 1. Adventures for Sale/IBM-UPS-GE 2. The Market for Togetherness, Friendship and Love/IBM-UPS-GE 3. The Market for Care/IBM-UPS-GE 4. The Who-Am-I Market/IBM-UPS-GE 5. The Market for Peace of Mind/IBM-UPS-GE 6. The Market for Convictions/IBM-UPS-GE Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

IBM, UPS, GE … Dream Merchants!

Experience Ladder/TP Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials

Experience Ladder/TP Dreams Come True/PSF Awesome Experiences/PSF Solutions/PSF Services Goods Raw Materials

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

The “PSF33”: Thirty-Three Professional Service Firm Marks of Excellence

IBM, UPS, GE … Dream Merchants!

PSFs (PSF33) … Dream Merchants!

The PSF33: The Client Experience 11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER” HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?

Static/Imitative Integrity. Quality. Excellence. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dynamic/Different Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation!

Point of View!

Best is not good enough!

????? Do good (excellent?!) work Make a lot of money

R.POV8* *Remarkable Point Of View/8 Words or less/“If you can’t state your position in eight words or less you don’t have a position.”--SG

“If you can’t write your movie idea on the back of a business card, you ain’t got a movie.” —Samuel Goldwyn

*Mystery *Magic *Sensuality *Enchantement *Intimacy *Exploration Source: Kevin Roberts (e.g. Apple/iMac/ “Yum.”)

Paint Portraits of Excellence!

“Make your life itself a creative art.” —Mike Ray, The Highest Goal

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

“This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one … the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy.” —GB Shaw/ Man and Superman (from Mike Ray, The Highest Goal)

“This is an important speech! Why? You are important people! And why the hell do I have to persuade you of that? Get the %$^&&* chip off your shoulders! Stand tall! DARE TO BE ‘INSANELY GREAT.’ Act like the stalwart heroes you truly are! Damn it!” —TP to CIOs, HR directors/11.04

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

NB: Waaaaay Beyond The “Knowledge Economy”!

“It” all adds up to … THE BRAND. (THE STORY.) (THE DREAM.) (THE LOVE.)

“WHO ARE WE?”

“Brand”? It’s all about “Character”!

“WHAT’S OUR STORY?”

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions 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

“WHAT’S THE DREAM?”

Nothing Is Impossible To Be Revered As A Hothouse For World-changing Creative Ideas That Transform Our Clients’ Brands, Businesses, and Reputations Source: Kevin Roberts/ Lovemarks /on Saatchi & Saatchi

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” Jerry Garcia

“Brands have run out of juice. They’re dead.” —Kevin Roberts/Saatchi & Saatchi

Kevin Roberts*: Lovemarks! *CEO/Saatchi & Saatchi

“When I first suggested that Love was the way to transform business, grown CEOs blushed and slid down behind annual accounts. But I kept at them. I knew it was Love that was missing. I knew that Love was the only way to ante up the emotional temperature and create the new kinds of relationships brands needed. I knew that Love was the only way business could respond to the rapid shift in control to consumers.” —Kevin Roberts/Lovemarks

Brand …………………………………………………. Lovemark Recognized by consumers ………………. Loved by People Generic ………………………………………………… Personal Presents a narrative ………………….. Creates a Love story The promise of quality ……………… A touch of Sensuality Symbolic ………………………………………………….. Iconic Defined ………………………………………………….. Infused Statement ………………………………………………….. Story Defined attributes ……………………... Wrapped in Mystery Values ………………………………………………………. Spirit Professional …………………………... Passionately Creative Advertising agency ………………………….. Ideas company Source: Kevin Roberts, Lovemarks

Story > Brand

Market Power = Story Power = Dream Power

“Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead

Experience Ladder/TP Lovemark Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials

Experience Ladder/TP Lovemark/PSF Dreams Come True/PSF Awesome Experiences/PSF Solutions/PSF Services Goods Raw Materials

HouseValues.com … HomeGain.com … House.com … ServiceMagic.com … LendingTree.com … har.com … ZipRealty.com … homedepot.com … forsalebyowner.com … homestore.com … HomeLoanCenter.com … owners.com … CompleteHome.com … Reply.com* *70% start search on Web (vs 49% newspaper) (1.9 weeks with Realtor vs 7.1); 35% of leads from Web (25-35% of fee); commission, 6%-4.5% ($60B)

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

Experience Ladder/TP Lovemark Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials

Sell One: A Trustworthy Knowledge/Prep/Presentation Reputation Doesn’t pawn off to asst. Returns phone calls promptly Regularly in touch, even when nothing to report (eg, chatty, informative emails) Flexible (we pulled it off the market after 1st firm offer; re-listed 8 months later) Realistic/insistent (eg, $10,000 cosmetic fix-up) Details/Stay-the-course (e.g., inspections!!)

Buy One: A+ Entry: Rental … absurdly helpful, incredible staff Clear rep leader (Brand Roberta!) Knowledge edge Intro to community Connected to all service needs Follow-up excellent Stays in touch Trustworthy!

Cut Two Rep Knowledgeable Etc Did not keep informed!

New “C-Levels”

CXO* *Chief eXperience Officer

CFO* *Chief Festivals Officer

CCO* *Chief Conversations Officer

CPI* *Chief Portal Impresario

CLO* *Chief LoveMark Officer

CWO* *Chief WOW Officer!

CDM* *Chief Dream Merchant

CSTO* *Chief StoryTelling Officer

Bedrock: Brand Inside!

The New Enterprise Value-Added Equation/Mark2005 (1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”) + (2) Incredible “TALENT” Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Launched on Awesome “QUESTS” = (5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” & “GAME-CHANGING CLIENT SUCCESS”

Experience Ladder/TP Lovemark Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials

Experience Ladder/TP Lovemark/PSF Dreams Come True/PSF Awesome Experiences/PSF Solutions/PSF Services Goods Raw Materials

Experience Ladder/TP+BEDROCK Lovemark/PSF Dreams Come True/PSF Awesome Experiences/PSF Solutions/PSF BRAND YOU/TALENT WOW PROJECTS

Welcome to a Brand You World.

“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

Distinct … or … Extinct

The Talent Obsession.

Brand = Talent.

“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

The WOW Project.

Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

Measures

• WOW!
• Beauty!
• Raving Fans!
• Impact!

“Astonish me!” / S.D. “Build something great!” / H.Y. “Immortal!” / D.O.

“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

“Insanely Great”

LeadershipLessons for Dream Merchants: The Passion Imperative.

Experience Ladder/TP+BEDROCK Lovemark/PSF Dreams Come True/PSF Awesome Experiences/PSF Solutions/PSF BRAND YOU/TALENT WOW PROJECTS

Start a Crusade!

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

“the wildest chimera of a moonstruck mind” —The Federalist on TJ’s Louisiana Purchase

Think Yankees!

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

PARC’s Bob Taylor: “Connoisseur of Talent”

“THE HEART OF CELERA … IS THE WORLD’S LARGEST PRIVATE SUPERCOMPUTER … FED 24 HOURS A DAY … BY SEQUENCING ROBOTS … AND CREATED-PROGRAM CONTROLLED … BY A DOZEN GREAT MINDS.” Source: Juan Enriquez/As the Future Catches You

“Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class

Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” —Nathan Myhrvold, former Chief Scientist, Microsoft

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

Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

Think Legacy!

“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Do you feel you have an obligation to ‘Make the world a better place’?”

Trumpet an Exhilarating Story!

“Leaders don’t just make products and make decisions. Leaders make meaning.” – John Seely Brown

Make It a Grand Adventure!

Quests!

Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

Yes!!!!!!!!!!!!!!!!! “free to do his or her absolute best” … “allow its members to discover their greatness.”

“Until there is commitment there is hesitancy, the chance to draw back. Concerning all acts of initiative and creation, there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence moves too. All sorts of things occur to help one that would never otherwise have occurred. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now!” —Johann Wolfgang von Goethe

Dispense Enthusiasm!

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

“A man without a smiling face must not open a shop.” —Chinese Proverb* *Courtesy Tom Morris, The Art of Achievement

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

“To change minds effectively, leaders make particular use of two tools: the stories that they tell and the lives that they lead.” —Howard Gardner, Changing Minds

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004

The New Enterprise Value-Added Equation/Mark2005 (1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”) + (2) Incredible “TALENT” Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Launched on Awesome “QUESTS” = (5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” & “GAME-CHANGING CLIENT SUCCESS”

Let Us March!

“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch

“If I had any epitaph that I would rather have more than any other, it would be to say that I had disturbed the sleep of my generation.” —Adlai Stevenson

It is the foremost task—and responsibility— of our generation to re-imagine our enterprises, private and public. —from the back cover, Re-imagine!

“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

“In classical times when Cicero had finished speaking, the people said, ‘How well he spoke,’ but when Demosthenes had finished speaking, they said, ‘Let us march.’” —Adlai Stevenson

Let us march!