1. Re-imagine Permanence: The Emperor Has No Clothes!
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
2. Re-imagine: Innovate or Die!
“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)
“To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” —W. Chan Kim & Renée Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03
“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/02.2003
Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!
3. Re-imagine Enterprise as Theater I: A World of Scintillating “Experiences.”
“While everything may be better, it is also increasingly the same.” Paul Goldberger on retail, “The Sameness of Things,” The New York Times
“Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, Unique Now or Never
Variety(11.04): 150 speakers @ $40K+
“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
“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
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
The “Experience Ladder” Experiences Services Goods Raw Materials
Q: “Why did you buy Jordan’s Furniture?” A: “Jordan’s is spectacular. It’s all showmanship.” Source: Warren Buffet interview/Boston Sunday Globe/12.05.2004
4. Re-imagine Enterprise as Theater II: Embracing the “Dream Business.”
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
Experience Ladder/TP Dreams Come True Awesome Experiences Services Goods Raw Materials
“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
5. Re-imagine the Fundamental Selling Proposition: “It” all adds up to … (THE BRAND.) (THE STORY.) (THE DREAM.) THE LOVE.
“WHO ARE WE?”
“WHAT’S OUR STORY?”
“WHAT’S THE DREAM?”
“Brands have run out of juice. They’re dead.” —Kevin Roberts/Saatchi & Saatchi
Kevin Roberts*: Lovemarks! *CEO/Saatchi & Saatchi
*Mystery *Magic *Sensuality *Enchantment *Intimacy *Exploration Source: Kevin Roberts (e.g. Apple/iMac/ “Yum.”)
Top 10 “Tattoo Brands”* Harley .… 18.9% Disney .... 14.8 Coke …. 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 *BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom
Explanation for prior slide: The % of users who would tattoo the brand name on their body!
ABCDEAvg Toilets 0 0 1 1 4 D Gen’l Cleanliness 0 0 2 3 1 D Speed 1 2 3 0 0 B Attitude 0 1 3 2 0 C- Overall “Experience” 00420 C- TOTAL 1 3 13 8 5
“They need to devote less money to advertising and more to operations (pay their workers more) so as to insure a Quality Experience. All great advertising does is frustrate their consumers. They say ‘come experience this great place’ ... and customers experience something else and they get mad … AND WON'T COME BACK.” (Anon.)
ABCDEAvg Food 0 1 12 4 0 C/C-
Fight ’til Death! “I thought, ‘What a dreadful mission I have in life.’ I’d love to get six-thousand restaurants up to spec, but when I do it’s ‘Ho-hum.’ It’s bugged me ever since. It’s one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we have created a plethora of ho-hum products and services. Just go fly in an airplane. It could be such an enlightening experience. Ho-hum. We swim in an ocean of ho-hum, and I’m going to fight it. I’m going to die fighting it.” — Barry Gibbons
“There’s nothing worse than being normal” —Mena Suvari/ American Beauty
Ray. Finding Neverland. Kinsey.
“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 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
8. Re-imagine the Customer I: Trends Worth Trillion$$$ … Women Roar.
????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) Allconsumerpurchases … 83%Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%
91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)
FemaleThink/ Popcorn & Marigold “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.”
Senses Vision: Men, focused; Women, peripheral. Hearing: Women’s discomfort level I/2 men’s. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women
The Perfect Answer
Jill and Jack buy slacks in black…
1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.
44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing
Possession Experiences /“Desires for things”/Young adulthood/to 38 Catered Experiences/ “Desires to be served by others”/Middle adulthood Being Experiences/“Desires for transcending experiences”/Late adulthood Source: David Wolfe and Robert Snyder/Ageless Marketing
“Thanks to a rising tide of aging baby boomers determined to unwind and look good as long as they can, the U.S. spabusiness is surging. In the past five years the number of spas has more than doubled to more than 12,000.” —The Wall Street Journal Europe/01.21.2005
10. Re-imagine Excellence I:The Talent Obsession.
“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
“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.” Ed Michaels, War for Talent (05.17.00)
“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report/BusinessWeek
“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
12. Re-imagine Leadership for Totally Screwed-Up Times: The Passion Imperative.
Start a Crusade!
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Whodowe intendtobe?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller
Trumpet an Exhilarating Story!
“Leaders don’t just make products and make decisions. Leaders make meaning.” – John Seely Brown
Leader Job 1 Paint Portraits of Excellence!
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
Free the Lunatic Within!
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
“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch
“There’s nothing worse than being normal” —Mena Suvari/ American Beauty