Marsh in Motion
VeLOCITY Rules!
2000 Managing Directors Meeting
of the Americas
The Greenbrier
22 May 2000
Defeated Before
The Starter’s Gun!
“Track 4: Managing
Organization Change (Helping
Tired and Overworked
Professionals with Today’s
Workplace Realities)”
NAPM: You are the
Rock Stars
of the
B2B Age!
Message2000
“The point is the
passion!”
Charles Handy
An Age of Passion:
1 Year = 1.5 Wal*Marts
03.27.99: $167B
03.27.00: $555B
P.S.: Wal*Mart = #8 in 2000
No Wiggle Room!
“Incrementalism is
innovation’s worst
enemy.”
Nicholas Negroponte
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)
64/24
Goal?
Welcome to the Land of the True Believers!
“We have the ability to turn the
economy upside down, to
enhance lives, and to drive
civilization forward.”
Michael Saylor,
MicroStrategy
“It means nothing
less than the total
reinvention of
this company.”
Jacques’ New New Ford
Ford + MSN CarPoint
Ford + Yahoo!
Ford + Oracle
Ford + HP/MCIWorldcom
Etc.
Etc.
“We are in a
brawl with no
rules.”
Paul Allaire
S.A.V.
Net World!
Act now. Analyze
later.
Avram Miller
“R & D”
Intel’s venture fund:
275 investments, $8B
Source: Fast Company , eCompany
“Our ideal acquisition is a small
startup that has a great
technology product on the
drawing board that is going to
come out in six to twelve months.
We buy the engineers and the
next generation product. …”
John Chambers, Cisco
Brand Inside
Brand Org!
108 X 5
vs.
8 X 1*
* 540 vs. 8
And Now the Equivalent …
White Collar
Revolution!
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon/WebMD
* ’twixt docs, patients, insurers and providers;
$275B of $400B in waste; source: Michael Lewis,
The New New Thing
[ Incidentally …
CEO Jeff Arnold
Age: 30
First Start-up: Age 24]
“We want to be the
air traffic controllers
of electrons.”
Bob Nardelli,
GE Power Systems
These are …
L.A.D.T.I.R.S.*
*Life-and-death-total-industry-reinventionstruggles
Brand Inside
Brand Work!
Why are there no
books on how to create
a “Cool, Rocking,
WOW-producing
Finance Department”?
[NAPM Redux: Welcome
to the Y2K New Orleans
Jazz and Real Cool
Purchasing Dudes
Festival!]
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget …
who cares?”
anon. seminar participant (4/99)
“You really got to me. So
many of our information technology
projects take on a life of their own,
and I know they’ll never end up as
more than ‘mediocre successes.’ ”
CEO, F100 financial
services company (10-98)
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
Brand Inside
Brand You!
DISTINCT … OR EXTINCT!
“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
“If one quarter can’t make
the journey, that’s the way it
has to be.”
Carly Fiorina (1-00/Forbes)
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 …
Icon Woman …
–Totally turned on by her work!
–“It” matters / a WOW Project!
–“It” is … COOL!
–“It” is … BEAUTIFUL!
–She is … in your face!
–She is an … adventurer!
–She is … CEO of her own life!
Icon Woman …
- She is … at least … a little funky!
–Her curiosity is … insatiable!
–She thinks screwups are …
as normal as breathing!
–She hangs out with some …
seriously rad Dudes!
–She is not God. She is not Bionic
Woman. She is … determined
to make a damned difference!
“Well-behaved
women rarely
make history.”
Anita Borg,
Institute for Women and Technology
Icon Woman Meets the Web …
– submits resume on the Web
– recruited on the Web
– hired on the Web
– trained on the Web
– creates and conducts projects with
virtual teams on the Web
– manages project and client
follow-up on the Web
– manages career/reputation-building
on the Web
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
“Firms will not ‘manage the
careers’ of their employees. They
will provide opportunities to
enable the employee to develop
identity and adaptability and
thus be in charge of his or her
own career.”
Tim Hall et al., “The New Protean Career Contract”
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
Women and
new-economy
management …
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (5/2000)
Brand Inside
Brand Talent!
Issue Y2K
The Great War
for Talent!
Tomorrow’s Headlines
“Molecular biologists are up 3
points, economists down 1/4,
in moderate trading”
futureWEALTH, Stan Davis and
Christopher Meyer
There is no “talent shortage” …
if …
you are a
GPTW*
*Great Place To Work
Talent war, Web-speed!
Every resume or employment
question that comes to Lucent via
the Web gets answered in 30
minutes or less. [24/7.]
Red Herring [06.00], on Lucent Director of
Recruitment Jim Baughman
“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
“He grew his hair long, played
guitar in a rock band, chased
girls, got into trouble. At age 17
he was flogged by his house
master, who described him as
‘the most difficult boy I’ve ever
had to deal with.’ ”
Solution?
Ritalin [“a chemical virtually
identical to cocaine”/Reason
magazine]
Or …
Elect Him Prime Minister
Tony Blair*
*talk/May 2000
“Whoever is the
most impertinent
has the best
chance.”
W.A. Mozart
Talent = Brand
Brand Outside
=
Brand Inside
Brand Outside
Context:
No “Commodities”!
In the Beginning …
“The audit has become a
commodity.”
Big 5 audit partner to TP
What’s Special?
“Customers will try ‘low cost
providers’ because the Majors
have not given them any clear
reason not to.”
Leading Insurance Industry
Analyst (10-98)
“We make over three new
product announcements a
day. Can you remember
them?
Our customers can’t!”
Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing similar
people, with similar educational
backgrounds, working in similar jobs,
coming up with similar ideas,
producing similar things, with similar
prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
The “10X/10X
Phenomenon”
10 Times Better/
10 Times Less Different
“When we did it ‘right’
it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
TP’s “Mega-marketing-trends”
Rapidly aging population!
Health fanaticism!
Environmental concerns!
Freaky independence!
Women rule!
Brand Outside
Strategy 1:
Lead the Customer!
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the
Business!
Tomorrow Today: Cisco!
90% of $14.4B
Save $500M++ (service and tech
support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms ($1B?)
Cherry Picking
Vertical Markets
Plasticsnet.com: $370B;
sellers pay $5K to $8K for
“storefront”; 5% to 10% cut
Hook: community services
(database, catalogs, forums,
industry job bank, etc.)
Message …
COMMUNITY!/
COMMUNITY
SERVICES!
B2B
1999 – 2004: 50X
2004: $7.4 T
Source: GartnerGroup
(per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint
$240B (+$500B)
I.P.O.
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
Paradox?
Community Services/V.A.
Waste Extraction
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
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age
of Customer
Control”
The Supply Side …
The Age of the Choiceboard
The War of the Choiceboards
Source: Adrian Slywotzky,
HBR 1-2/2000 [<1%]
“In the network economy, the
Website becomes the company’s
primary interface to the customer.
The user interface becomes the
marketing materials, store front,
store interior, sales staff and postsales support all rolled into one.”
Jakob Nielsen,
Designing Web Usability
“Most companies would do more
business on the Internet if they
fired their entire marketing
department and replaced it with
people who could produce
interactive content that actually
made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
[Ge Miscellany …
Polymerland: 75% to Web
Appliances: $5 to 20 cents
[Web vs. call Service Rep; 20
million calls per year
Source: Fast Company]
“Even if executives of established
businesses grasp the impact of new
technologies … they still face a massive
competitive disadvantage precisely
because they are incumbents. … They
do complex financial calculations and
get bogged down in internal political
debates. Insurgents have no such
inhibitions.”
Philip Evans & Thomas Wurster,
Blown to Bits
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.
**Reinvent our marketspace!
Web Strategy: GE Power Systems
“Launch and Learn”
(4 sites in 30 days)
“It’s better to be first with less
than last with more. Success on
the Web isn’t just about
time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
[He who has the quickest
O.O.D.A. Loops* wins!
*Observe. Orient. Decide. Act. /
Col. John Boyd]
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
“E-business is the
final nail in the coffin
for bureaucracy at
GE.”
Jack Welch/
GE Annual Report 2000
[ 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]
Brand Outside
Strategy 3:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
Women … 49% of Web users; 6
of 10 new users; 83% of wired
women are primary decision
makers for family healthcare,
finances, education.
Source: Business Week (11-99)
Yeow!
1970 … 1%
2000 … 50%
OPPORTUNITY
NO. 1!*
[* No shit!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
FemaleThink/ 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.”
Women and Healthcare
Women are … more dissatisfied,
frustrated by the way they are treated
and spoken down to by physicians,
seek more information, are more pressed
for time … and make 75% of health care
decisions and control 2/3 of health care
$$$$ [and constitute 2/3 of health care
employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be
listened to, to be taken seriously,
to read about it, to think about it.
Women do not want … an
in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done
indicates that women really care
about the relationship with their
vendor.”
Robin Sternbergh/ IBM
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/ Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
Not a Morality Play!
“It is critical that we all understand
that IBM is not marketing to women
entrepreneurs because it is the thing
to do, or even the right thing to do.
We are marketing to women
entrepreneurs because it is a huge
opportunity.”
Cherie Piebes
27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3rd 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!”
Wanna see my
“porn”
collection?
TP: A Modest AttaMarsh!
Karen Horn
Sally Bott
23% MDs in last year
Brand Outside
Strategy 4:
It’s the Experience!
“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
Mantra: “Any good can be
ing-ed”
the driving experience
the pumping experience
the sitting experience
the reading experience
the washing experience
the cooking experience
Joseph Pine & James Gilmore, The Experience
Economy: Work Is Theatre & Every Business a Stage
And Now For A
th
Nod To 1/7 of
Our Economy!
Health Care Tsunami
Prevention/Wellness/Fitness
Proactive Engineering/Gene
“stuff”[Blockbuster-Bazooka to
Specific-Sniper’s Rifle]
Holistic/Homeopathic/Non-traditional
Patient-centric/Web-led
No waste [Healtheon/WebMD et al.]
Etc.
TP 03.26.00:
AMA Riff
1965: “ ‘Doctor’ will see you now. ‘Doctor’
will take care of you.”
YES, NURSE.
ME GOOD PUPPY DOG.
1995: “HMO will take care of you.”
BULLSHIT.
2005: “I will take care of me. I’d like your
expert help.”* [*P.S.: THE VIAGRA, ETC.] I
ORDERED ONLINE IS GREAT.]
Patient-centric* Health Care
Wellness (Fix to prevent.)
Partnership (“Tour guide” model.)
RESPECT! (Mutual.)
WOMEN RULE!
*Not: HMO-centric, Employer-centric,
Insurer-centric, Doc-centric
Brand Leadership
Passion Rules!
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“The challenge for IBM, AT&T and
other mainstream companies is to
re-instill a sense of adventure in
recruits.”
Burke Stinson, AT&T
Talent “War,” Marketplace “War”
“The successful company has to
create an environment that imbues
its employees with a sense of
passion.”
Joe Nocera, eCompany, on David Pottruck
Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF
AT RISK EVERY DAY!