The Challenge: To Create More Value in All Negotiations

The Challenge: To Create More Value in All Negotiations

Excellence 2008: valueadded By Design Tom Peters/for the Korea Design Forum 2008 NOTE: To appreciate this presentation [and ensure

that it is not a mess], you need Microsoft fonts: Showcard Gothic, Ravie, Chiller and Verdana

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part one 56 Random Thoughts on Design Tom Peters/for the Korea Design Forum 2008 56 Random Thoughts on Design

**Great things are more valuable than not-so-great things. **It is everything. **Everybodys doin it. **If everybodys doin it, then how do we do it differently-sustainably? **Everybody will do it differently. (Sorta design zealots in Japan are about the same

as design zealots in Italy.) **It works only if it is a way of life. (Apple, BMW, Cirque du Soleil) **Consider my term-of-choice: Designmindedness. (Design-mindedness is an attitude.) **It is not about recruiting a rock star designerthis may be counterproductive, at least at first.

**Dreamers with deadlinescreative & loose with deliverables. **Its already faddish. **Dont try to engineer itthere is an essential spontaneity dimension. (SWA) **In the case of goods, it starts with the vendors and especially includes packaging and delivery folks and parking lot attendantsthink Disney and gum and the Orlando airport.

**In the long run, the Mittelstand will make the difference! **Acquiring design firms is tricky. **There are no exemptsit applies as much, albeit in a different way, in purchasing as in marketing. **IT IS NOT ABOUT MARKETING! (Except a little bit.)

**The entire supply chain must be on board. **As always, MBWA rulesembedding something new in a culture is a walk around affair. **It is about the way every individual conducts himself or herself. (E.g., hotel housekeeper) **Aesthetics and usability are equally importantwith perhaps a slight edge to

usability. ( It won a prize is the ultimate criticismDN) **There is a bet the farm element at play Dubai, Apple. **There must be a far higher than normal dose of autonomyin the end this is about valueadded through creativity. **It must show up in the schools by age 5. **It becomes the chief organizing principal

for education. **When it comes to aesthetics, you get most of it from the genes you were dealt. Every child is born an artist. The trick is to remain an artist. Picasso

**Beware of engineers! (Said with affection I am one.) **Beware of MBAs (Said with no affection, even though I am one.) **The education bit is less about aesthetics and more about encouraging individualism to take a risk on design, you must have a burning desire to do things differently.

(Schoolsours, yours, everyonesare brilliant at suppressing creativity and excessive shows of passion.) **Capturing best practice only goes so far. **Six Sigma can be a deadly enemy. differences are enormous. **Women buy stuff, hence women must design stuff. (And be very

amply represented in management ranksfor reasons of profit, not social justice.) **Think: Women!!!!!!!!!!!! **If you are interested in selling to Europe and the U.S. and Japan (etc) then you must explicitly (!!!) focus on the over

**If you are serious, the Chief Design Officer (Chief Experience Officer) must sit at the same level as the CFO. So, too the Chief People Officer!!!! **It must be on every (literally) agenda; in project reviews of every type it must hold its own with, say, the budget discussion. **Youll never be able to explain it to the

analysts. **Steve Jobs is luckyas well as good. **Steve Jobs is too abnormal to learn from. **Design competitions at all levels of societybusiness must be very big deals. **Buy art. (All businesses of all sizes.) **In the public sector, it starts at the airport for foreign visitors especiallyan experience that includes traffic, air quality, etc.

**You can do a lot for 2-cents! **And dont ignore with the subway map. **Or the public toilets. **Be merciless about urban trashspend yourself poor on this if necessary. **Good design transforms healthcare facilities (especially hospitals)and abets healing. **Good design in eldercare facilities extends life and enhances quality of life.

(usually?) more important than big things. **Design Is Free is closer to the truth than you would think. **Throwing money at problems is almost always a dumb thing to doDesign Excellence

included. **Training in service excellence is often a better design investment than capital **This aint limited to global enterprises. **The overall quality of small firms equals (exceeds?) the value added by big firms. **Gandhi and Mandela and Churchill and JFK

and Reagan and Thatcher and Sarkozy and Franklin and Washington set the tone to an incredible degreetheir personal style was their brand. (It starts with personal style of the tip-top leadership team. Sorry to be politically insensitive, but who would give a hoot about Tibet if it werent for the look and style of the Dalai Lama?) Boss: Youre either

on the it boator not. part TWO EXCELLENCE. VALUE ADDED. UP THE LADDER. 4 of 7. Tom Peters for the Korea Design Forum 2008

Up, Up, Up, Up the Value-added Ladder.

EXCELLENCE. VALUE-ADDED LADDER I, II, III. The Value-added Ladder/ BEDROCK Raw Materials* *Farmers and Miners (Degree: Weightlifting)

The Value-added Ladder/ THINGS Goods* Raw Materials *Engineers and Factory Workers (Degree: Engineering) The Value-added Ladder/TRANSACTIONS Services* Goods

Raw Materials *Clerks (Degree: Process Engineering) EXCELLENCE. VALUE-ADDED LADDER IV. SOLVE IT. IB : $55B*

M *Also HP-EDS THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.: IPM [Integrat5ed Project Management] strays from [Schlumbergers] traditional role

as a service provider and moves deeper into areas once dominated by the majors. Source: BusinessWeek cover story, January 2008 IBM HP Schlumberger GE Energy GE Infrastructure

UPS MasterCard etc. etc. etc. Results are measured by the success of all those who have purchased

your product or service Jan Gunnarsson & Olle Blohm, The Welcoming Leader Huge: Customer Satisfaction versus

Customer Success The business of selling is not just about matching viable Its equally about managing the change process the customer will need to go through to

implement the solution and achieve the value promised by the solution. One of the key solutions to the customers that require them. differentiators of our position in the market is our attention to managing change and making change stick in our customers organization.* (*E.g.: CRM failure rate/Gartner: 70%) Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

The Value-added Ladder/TRANSFORMATION Customer Success through Implemented Gamechanging Solutions* Services Goods Raw Materials

*Subject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organizational Psychology) EXCELLENCE. SOLVE IT. NO OPTION. PSF. Are you

Rock Stars of the Age of Talent Department Head to Managing

Partner, IS Inc. [HR, R&D, etc.] Are you the Principal Engine of Value Added

*E.g.: Your R&D budget as robust as the New Products team? Core Mechanism: Game-changing Solutions PSF (Professional Service Firm model/The Organizing Principle) +

Brand You (Distinct or Extinct/The Talent) + Wow! Projects (Different vs Better/The Work) The

PSF35: Thirty-Five Professional Service Firm Marks of Excellence The PSF35: The Work & The Legacy 1.

CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: If you cant explain your position in eight words or less, you dont have a positionSeth Godin) 2. DRAMATIC DIFFERENCE (We are the only ones who do what we doJerry Garcia) 3. Stretch Is Routine (Never bite off less than you can chewanon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling Best TeamFast) 5. Playful Clients (Adventurous folks who unfailingly Aim to Change

the World) 6. Small Uneconomic Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: Dent the UniverseSteve Jobs) 9. Fire-on-the-spot Anyone Who Says, Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a commodity 10. Consistent with #9 above DO NOT SHY AWAY FROM THE WORD (IDEA) RADICAL

Technology Executive (workin in a hospital) HCare CIO: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospitals Senior

Healing-Services Team (who happens to be a techie) Or/to: Up, Up, Up,

Up the Value-added Ladder. EXCELLENCE. VALUE-ADDED LADDER V. EXPERIENCE IT. 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 thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager Experiences

are as distinct from services as services are from goods. Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

Q: Why did you buy Jordans Furniture? A: Jordans is Its all showmanship. spectacular.

Source: Warren Buffet interview/Boston Sunday Globe/12.05.04 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 Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences* Customer Success/Implemented Gamechanging Solutions

Services Goods Raw Materials *Theatrical Skills (Degree: Theater Arts) Beyond the Transaction/ Satisfaction Mentality Good hotel/ Happy guest/ Exceeded Expectations vs.

Great Vacation/ Great Conference/ Operation Personal Renewal XO* C

*Chief e Xperience Officer Hire a theater director, as a consultant or FTE! First Step (?!):

Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of physical products to choose

between. Jesper Kunde, Unique Now ... or Never Extraction & Goods: Male dominance Services & Female dominance Experiences:

TGR [Things Gone WRONG/Things Gone RIGHT] 3Ms Innovation Crisis: How Six Sigma Almost

Smothered Its Idea Culture Source: Title/Cover Story, BW, 0611.07 (Whats remarkable is how fast a culture can be torn apart, 3M lead scientist; In an innovation economy, [6 Sigma] is no longer a cure all/ BW) Perfection is achieved only by institutions on the point of collapse. C. Northcote Parkinson

Up, Up, Up, Up the Value-added Ladder.

THE ESSENCDE OF EXPERIENCES: BONUS #1 Forget China, India and the Internet: Economic Growth Is Driven by

Women. Headline, Economist, April 15, 2006, Leader, page 14 Women are the majority market

Fara Warner/The Power of the Purse Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from womens increased purchasing power; over the past decade the value of shares in Goldmans basket has risen by 96%, against the Tokyo

stockmarkets rise of 13%. Economist, April 15 The Perfect Answer Jill and Jack buy slacks in black AS LEADERS, WOMEN

RULE: New Studies find that female managers outshine their male counterparts in almost every measure Its gotta be a majority

10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Womens work force participation rates have soared worldwide. Women are closing in on same pay for same job. Women are penetrating senior ranks rapidly [even if the pace is slow for the corner

office per se]. Womens leadership strengths are exceptionally well aligned with new organizational (more or less) imperatives. (circa 0331.2007) effectiveness Women are better salespersons than men. Women buy [almost] everythingcommercial as well as consumer goods.

Elizabeth Cady Stanton So what exactly is the point of men? THE ESSENCE OF EXPERIENCES: BONUS #2 7/1

!!!!!!!!!!!!!!!!! People turning 50 today have more than half of their adult life ahead of them.

Bill Novelli, 50+: Igniting a Revolution to Reinvent America We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the

most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the we will be the Center of your universe for the next twenty-five years. We have arrived! worldand

THE ESSENCDE OF EXPERIENCES: BONUS #3 flush $500,000 down the toilet

< CAPEX > People! #1/10 0 Best Companies to Wegmans People want to be part

of something larger than themselves. They want to be part of something theyre really proud of, that theyll fight for, sacrifice for , trust. Howard Schultz, Starbucks (IBD/09.05)

We are a Life Success Company. Dave Liniger, founder, RE/MAX The role of the Director is to create a space where the actors

become more than theyve ever been before, more than theyve dreamed of being. and actresses can Robert Altman, Oscar acceptance speech Organizations exist to serve. Period.

Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of

diverse individuals is unleashed In passionate pursuit of jointly are perceived soaring purpose and personal and community and client service Excellence. Why in the

World did An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the

wholehearted service of others.** others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners 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 Up, Up, Up,

Up the Value-added Ladder. EXCELLENCE. SOUL I. DESIGN. All Equal Except

At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only thing that differentiates one product from another in the marketplace.

features. Norio Ohga Design is treated like a religion at BMW.

Fortune We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. But to me, nothing could be further from Design is the fundamental soul of a manmade creation.

the meaning of design. Steve Jobs You know a design is good when you want to lick it.

Steve Jobs Source: Design: Intelligence Made Visible, Stephen Bayley & Terence Conran With its carefully conceived mix of colors and textures, Starbucks aromas and music,

is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonalds was to the Age of Convenience or Ford was to the Age of Mass Production the touchstone success story, the exemplar of the aesthetic imperative. Every Starbucks store is carefully designed to enhance the quality of

everything the customers see, touch, hear, smell or taste, writes CEO Howard Schultz. -Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness Having spent a century or more focused on other goals solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energywe are increasingly

engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and Whenever we have the chance, were adding sensory, emotional appeal to ordinary function. Virginia feel.

Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness D O* C

*Chief Design Officer Business people dont need to understand designers better.

Businesspeople need to be designers. Roger Martin, Dean, Rotman Management School, University of Toronto Message: Men

cannot design for womens needs. Period. Perhaps the macho look can be interesting

if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition its female. Source: Philippe Starck, Harvard Design Magazine Bottom Line.

Design is WHAT & WHY I LOVE. LOVE. All Time No.1

(TP) Ziplocs Design is WHY I GET MAD. MAD.

DESIGNER OF MY KRUPPS/ CUISINART COFFEEMAKER. Design is never neutral.

DESIGN is the principal difference between love and hate!* Hypothesis: *Not like and dislike

Better By Design The Design49 Tom Peters Auckland/30March2005 Better By Design: Toms Design49 1. There are only 2 rules.

2. Rule #1: You cant beat Wal*Mart on price or China on cost. 3. Rule #2: See Rule #1. 4. Econ Survival = Innovate and Sprint Up the Value-added Chain OR DIE! 5. DESIGN (WRIT LARGE) (DESIGN MINDFULNESS) IS THE SOUL/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE. 6. Design as Soul-Core Competence #1 is a cultural imperative, not a programmatic or process or throw $$$ at it issue! 7. CDEs (Culturally Design-driven Enterprises) use DesignExperiences-Dream Merchantry-Lovemarks as the Lead

Dog(s) in the OlympianInnovation-Strategy-Value Proposition Struggle. 8. Dream Merchant makes as much sense for IBM or GE or UPS as for Starbucks! The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences via Soul Through Design*

Customer Success/ Implemented Gamechanging Solutions Services Goods Raw Materials * *Blending Beauty, Usability, Theatricality (Degree: MFA/ Master of Fine Arts, D-school, Cultural Anthropology)

EXCELLENCE. SYSTEMS. DESIGN. K.I.S.S. Lisbon/New Biz: Weeks to

Minutes (!!!!) 90K in U.S.A. ICUs on any given day; 178 steps/day in ICU. 50% stays result

in serious complication Source: Atul Gawande, The Checklist (New Yorker, 1210.07) **Peter Pronovost, Johns Hopkins, 2001 **Checklist, line infections **1/3rd at least one error when he started **Nurses/permission to stop procedure if doc, other not following checklist

**In 1 year, 10-day line-infection rate: 11% to 0% Source: Atul Gawande, The Checklist (New Yorker, 1210.07) First Steps: Beauty Contest! 1. Select one form/document: invoice, airbill,

sick leave policy, customer returns claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. 3. Re-invent!

4. Repeat, with a new selection, every 15 working days. Beauty Grace Clarity Simplicity The Value-added Ladder/ MEMORABLE CONNECTION

COURTESY THE ENTIRE SUPPLY CHAIN Work as Art* Customer Success/ Implemented Gamechanging Solutions Services Goods Raw Materials *Artists and Process Engineers working in tandem

EXCELLENCE. VALUE-ADDED LADDER VI. DREAM IT. Furniture vs. Dreams We do not sell furniture at We sell

dreams. This is Domain. accomplished by addressing the halfformed 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 The sun is setting on the Information Societyeven 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 We stand facing

the fifth kind of society: the Dream Society. Future computer. 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

The Marketing of Dreams (Dreamketing) Dreamketing: Touching the clients dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream,

Dreamketing: Dreamketing: not the product. Build the brand around the main dream. Build the buzz, the hype, the cult. Source: Gian Luigi Longinotti-Buitoni

Up, Up, Up, Up the Value-added Ladder.

The Value-added Ladder/ EMOTION Dreams Come True* Design-driven Spellbinding Experiences Customer Success/Implemented Gamechanging Solutions Services Goods

Raw Materials *Psychologists (Degree: Psychology) DM* C The Dream Manager Matthew

Kelly An organization can only become the-best-version-ofitself to the extent that the people who drive that organization are striving to become better-versions-ofthemselves. A companys purpose is to become thebest-version-of-itself. The question is: What is an employees purpose? Most would say, to help the company achieve its purposebut they would be wrong. That is certainly part of the employees role, but an employees primary purpose is to become the-bestversion-of-himself or herself. When a company forgets that it exists to serve customers, it quickly goes

Our employees are our first customers, and our most important customers. out of business. EXCELLENCE. SOUL II. THE STORY.

Storytelling is the core of culture. Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell Car designers need to create a story. Every car provides an opportunity to create an adventure.

The Prowler makes you smile. Why? Because its 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 ST C

O* *Chief Storytelling Officer 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 Companies will thrive on the basis of their stories and myths. Companies will need to understand that we work with others. their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies

The Value-added Ladder/ EMOTION Dreams Come True/Best Story Wins* Design-driven Spellbinding Experiences Customer Success/Implemented Gamechanging Solutions

Services Goods Raw Materials *Anthropology (Degree: Anthropology) EXCELLENCE. VALUE-ADDED LADDER VII. ALL YOU NEED IS

LOVE. Brands have run out of juice. Theyre dead. Kevin Roberts/Saatchi & Saatchi

Brands Are Out of Juice 1. Brands are worn out from overuse. 2. Brands are no longer mysterious. 3. Brands cant understand the new consumer. 4. Brands struggle with good old-fashioned competition. 5. Brands have been captured by formula. 6. Brands have been smothered by creeping conservatism.

Source: Lovemarks: The Future Beyond Brands, Kevin Roberts Kevin Roberts: Lovemar ks! 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

Up, Up, Up, Up the Value-added Ladder.

The Value-added Ladder/ ECSTASY Lovemark* Dreams Come True/ Best Story Wins Spellbinding Experiences/ Soul Through Design Customer Success/Implemented Gamechanging Solutions

Services Goods Raw Materials *Passion (Degree: ????) L C O*

*Chief Lovemark Officer Up, Up, Up, Up

the Value-added Ladder. 4/7 Ladder.2008: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences

Gamechanging Solutions Services Goods Raw Materials New (4 of 7) Value-added Ladder: Plays to Womens Inherent Strengths! Lovemark/F Dreams Come True/F

Spellbinding Experiences/F Gamechanging Solutions/F Services/F-M Goods/M Raw Materials/M Note #1: Men: Reductionist/ Things

Women: Holistic/ Relationships One thing is certain: Womens rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. This is just the beginning. The phenomenon will only grow as girls prove to be more successful than

For a number of observers, we have already entered the age of womenomics, the economy as thought out and practiced by a woman. Aude boys in the school system. Zieseniss de Thuin, Financial Times, 10.03.2006

Note #2: The composition of work groups engaged in the 4 of 7 new steps on the Ladder must look like the global market we serve!

EXCELLENCE. DOES MATTER MATTER? What Isnt Matter Is What Matters section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

VA Teaching Moment Andy pointed to a molding, about halfway up the wall The Boot and Timberland

The Tomato/ Farmer and Campbells Ladder.2008: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions

Services Goods Raw Materials 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 Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think

is practical; ... expect more than others think is possible. Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) CELLENC ALWA E VALUE-ADD HE LADDER.

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