FutureThink

QUANTUM VALUE LEADERSHIP IN

21ST CENTURY ORGANIZATONS
STAYING COMPETITIVE NOW AND IN THE NEW ERA

From the
FROG POND WISDOM CIRCLE DIALOGUES
with
CASTLE SKIP NEWELL III

How to be a profitable Business

NOW

Tulsi Publishing - Ukiah, California

Published by: Tulsi Publishing
PO Box 384
Ukiah, CA 95482
Printed in the United States of America.
Cover photos by Tom Liden
The author and Tulsi Publishing Company shall have neither liability nor responsibility
for errors, inaccuracies, or omissions in Future Think: Quantum Value Leadership in
21st Century Organizations Staying Competitive Now and in the New Era: From the Frog
Pond Wisdom Circle Dialogues with Castle Skip Newell III - How to be a Profitable
Business Now.

Ebook edition: Copyright © 2011 by Castle Skip Newell III

Conversion Services by: Creation Designs

Hard Copy First edition: July 2003 (ISBN-0-9703411-1-3)

Library of Congress Cataloging in Publication Data
Newell III, Castle
Future Think: Quantum Value Leadership in 21st Century Organizations Staying Competitive
Now and in the New Era: From the Frog Pond Wisdom Circle Dialogues with Castle Skip
Newell III - How to be a Profitable Business Now.
Bibliography.
Nonfiction / Business Reference
Summary: A personal narrative on how to be a profitable business
Imagine
- Albert Einstein
 CONTENTS

ACKNOWLEDGMENTS IX
About the Author
CASTLE SKIP NEWELL III XI
Part One
INTRODUCTION 1
Part Two
STAYING COMPETITIVE NOW AND IN THE NEW ERA 5
Part Three
CUSTOMERS-HERE AND GONE 9
Part Four
PHYSICS, SCIENCE AND THE NEW ERA OF BUSINESS 13
Part Five
A LARGER WORLD 19
Part Six
NEWELLIAN PARADOX 23
Part Seven
THE KNOWLEDGE ERA 27
Part Eight
YOUR UNIQUE LIFE EXPERIENCE 35
Part Nine
ORGANIZATIONAL SUSTAINABILITY IN THE NEW ERA 39
Part Ten
NEW AGE MARKETING 43
Part Eleven
A NOTE FROM THE FROG POND 47

VII
 ACKNOWLEDGEMENTS

This book is dedicated to my wonderful wife, Barbara Newell, PhD. She is the
founder of Penofin-Performance Coatings Inc., the high quality wood finish
company with sales across the U.S., Canada and used in some of the world’s out-
standing museums, theme parks, homes and commercial buildings. As CEO, CFO
and Chairman of the Board, she leads a very successful organization using many
of the skills outlined in this book. As an accountant and scientist with a Doctorate
in Medieval Literature, Barbara’s biography is listed in Who’s Who in American
Women and Who’s Who in the World. She is a tremendous volunteer, serving as
Chairman of the Board of the 200-employee Mendocino Community Health Clinic,
which serves thousands without regard for income, race or background. She is a
pilot, is very involved in the arts and raises Arabian horses for pleasure.

IX
About the Author
CASTLE SKIP NEWELL III
As an Expert Color Commentator for ABC Television’s Wide World of Sports and
winner of a Cannes Film Festival Golden Globe Award for the show he did with
ABC’s Bill Flemming at the Huntington Beach Surfing Contest as the best one hour
sports show of the year, he’s spent time on-camera around the world. Simulta-
neously developing a career in publishing, Mr. Newell worked as Advertising
Manager for such magazines as Surfer, Surfing, Cycle World and other special
interest publications. Working for N.W. Ayer, Jorgenson and McDonald, one of
the world’s oldest and one of the largest advertising agencies, he developed a
background in client services for some of the biggest national accounts. In order
to gain first-hand knowledge of the client side, he joined Kawasaki Motorcycle
Corporation, the American division of the huge Kobe, Japan based Kawasaki
Heavy Industries and spent years in Japan, England, Italy, Canada and across
the U.S. He served on the Consumer Product Safety Commission in Washington
D.C. on the B-175 Committee for Power Tool Safety from 1985-1990 and taught
Forestry Safety Engineering as a part time Instructor on the College level. He is the
only four-time guest speaker to the Alaska Loggers Association and has given
talks to varied business groups on the subject of growing business.
Mr. Newell owned his own business consulting firm for some years, Castle
Newell and Associates, and advised diverse industries such as manufacturing,
hi-tech electronics, wineries, microbreweries, mail order firms, agri-business,
contractors and builders, cosmetics, farms and nurseries, real estate, home improve-
ment companies, banks, attorneys and CPA’s. As a long-time public speaker and
writer of a best-selling business book, he is a member of the National Speakers
Association. Mr. Newell is President and Chief Operations Officer of Penofin-

XI
Performance Coatings Inc., founded 33 years ago by his wife, Dr. Barbara Newell
Ph.D. Penofin wood finishes are sold in thousands of stores across the U.S., Canada
and several foreign countries.
His speaking topics from his book FutureThink, Quantum Value Leadership
in 21st Century Organizations “How To Be A Profitable Business Now,” include his
Quantum Value formula of K+2CxE+ QV. This concept uncovers the secrets
to understanding and leveraging organization’s hidden values to meet customer
expectations in the new era. Audiences discover his concepts of “Wetware”, Intellectual
Capital, Quantum Customer Value, New Global Quality Movement, the Newellian
Paradox, the Doubler Factor, Quantum Physics, Organizational Structure, Using
Knowledge to Compete, Creativity, The Multiplier Factor, Visionary Leadership,
and New Age Marketing.
Castle Newell III has an incredible background in volunteerism as well. He has
been listed in the U.S. Congressional Record, tributes from the U.S. Senate, the
237th American Point Of Light Award for Volunteerism from President George
H.W. Bush, the California Governor’s Award, the California Assembly Resolution,
honored in the U.S. House of Representatives, a U.S. Congressional Salute, and
honors from President Ronald Reagan and Oprah Winfrey.

XII
 PART ONE

INTRODUCTION
The purpose of the Quantum Value equation is to help you understand your
potential and your place in the world as the universe goes through some turbulent
times in the entrepreneurial setting and in our social world.
This book is about understanding the Quantum Value concept, and how the
Quantum Value formula works. Drawing the formula on the blackboard would look
like this: it would be “K” standing for Knowledge, plus “C” for Creativity, doubled
and multiplied as a component by “E”, representing Unique Life Experiences, which
equals Quantum Value. This formula helps us capture the essence of the individual
in the New Age because it’s so simple to grasp and assists the entrepreneur, and
business person, in knowing his or her potential. It’s adding Creativity to Knowledge,
and then magnifying each with Unique Life Experiences to create added value.
My Quantum Value theory is about fundamental physical reality, about the
latest insights of quantum physics and quantum thermodynamics and how these
insights can relate to our everyday concerns about self and society and our entre-
preneurial business. The idea of a quantum society stems from our conviction that a
whole new paradigm is emerging from our description of quantum reality, and this
paradigm can be extended to radically change our perception of ourselves and the
society in which we live.
The word “Quantum” is defined as a quantity or an amount. In the world of
physics it’s the smallest amount by which certain physical quantities can change,
especially a discrete quantity of electromagnetic radiation. This amount of energy is
regarded as a unit.
This unit in the world of business and entrepreneurship is the individual. The
key to Quantum value is an understanding that these “hidden assets” are really what
is going to drive the next quality movement globally. It is the intangible assets in a
company and in small entrepreneurial settings that are the real source of strength
for an organization to distinguish itself in the marketplace or, in the case of the
internet, the “marketspace”.
We’re going to have to develop a deeper understanding of just who is the
individual and how their knowledge, creativity and unique life experience creates
Quantum Value for themselves, and for the businesses in which they own or work.
Let’s look at this more deeply. “K” for Knowledge is the first component of the
Quantum Value formula. This intellectual capital or “wetware,” the value of knowl-
edge in an organization, can leverage the organization’s hidden value by increas-
ing the individual’s competency levels and adding to the number of completed new
products per year.
When Knowledge is gathered and then Creativity (“C”) is applied, we have
achieved what I call the “Doubler Factor.” The Creativity we bring to a situation
is the real “Doubler” over and above Knowledge. We can know a lot of things. But
what we do with this, to get and keep customers or to be more competitive in the
marketplace, takes immense Creativity.
But Creativity alone does not complete the Quantum Value formula. Creativity
without the template of Unique Life Experiences is just brainstorming in the dark.
To make Quantum Value happen, the creative insight must be viewed from the
perspective of Life Experience. How and in what ways do I draw parallels between
my business and my days in the rodeo? (Answer: plenty) Or surfing? Or parenting?
How do these experiences increase my understanding of how the world works?
Quantum Value is going to revitalize organizations, particularly since
September 11th, the war, the craziness in huge corporate accounting abuses and
lost shareholder value, because it’s going to help renew and change the human
individual. I think this is the way you can understand, and I hope my teaching helps
you, to comprehend what it’s going to be like to take quality to the next level. What
are consumers demanding? What makes a transaction happen?
In that world of entrepreneurship, nothing happens until a transaction happens.
Until you cause somebody to go on-line, pick up a phone and dial an 800 number,
or cause a customer to walk into a store or sign a check or put a credit card number

2
in the mail. .. nothing happens until that transaction happens. So, we focus very
carefully on why and how that needs to happen in a way that consumers today will
select you, your product or service. By the way, the word entrepreneur comes from
the French word “entreprendre”, which means to take a risk, and that certainly
applies to business today.
I’m going to teach you about the Newellian Paradox. I want you to under-stand
that there are paradoxes and things happening today, perhaps like no other time in
history. I want you to understand the Newellian Paradox, as I’ve called it, and I’m
going to show you what the Doubler Factor is all about...how it works and how you
can apply it. These are concepts that everyone must understand to compete in the
future. When I work with companies and organizations, I call it “Renewell.” It’s the
Renewell of an organization. And, in these Frog Pond Wisdom Circles, we’re going
to talk about some things that I want to cover with you, so when they come along,
you will understand what it is that was important in the discussion that we had.
We’re going to talk about 21st Century competitiveness. We’re going to talk
about organizational knowledge and discuss Intellectual Capital awareness. Here’s
one that is so important: customer service on the next level. Soft and intangible
assets. What are they? How do you understand them? How do you value them?
How do you give worth to them now in this rapidly changing era?
We’re also going to talk about New World Marketing. I want you to be able to
understand from the Quantum Value view what it’s going to take in New World
Marketing to stay competitive and to survive as an entrepreneurial organization.
I also want to talk about the conceptual thinking process and Creativity ... where
and how to find it. I’m going to discuss Visionary Leadership, that component of
this formula under Life Experience that is so vital to our survival as a society.
We’ll be discussing Customer Defined Quality. I’m going to give you a couple of
paradox situations, a couple of paradigm shifts that are happening.
A great phase I saw on a bumper sticker the other day said, “Shift Happens,” and
that’s what we are going to talk about.
I’m going to talk about team thinking. We’re going to cover Creativity and
spirituality of the Universe. We’re going to talk about the Life Experience component
in the Quantum Value Individual. Understanding Quantum Value as a total human

3
and how we use FutureThink here in the Wisdom Circle Dialogues, as well as
understanding the art of the “long view” ... which is the “what might be” of scenario
planning.
I’d like to begin by telling you what I do, what I bring to the table and why I’m
doing so much research and study now into this Quantum Value concept that will
lead us into the next Global Quality movement.
My claim to fame is that I’m an “Entrepreneurial Medicine Man.” I look at
companies and solve problems. I’m kind of a Doctor of Entrepreneurship. I’m a
generalist. I’m a very broad generalist, but I bring changes in thinking, and bring
new options to the table. In the next era, this is going to be, and already is, so
incredibly valuable.
I identify with you, because I come from business. My life has been framed in the
business world and I share with you the fervor, the deliciousness, and the optimism
of this next era. The velocity at which our world is changing requires us to have
discussions like this on an on-going basis. So having Wisdom Circle Dialogues like
this inside organizations and corporations, groups and associations is so extremely
valuable because it disturbs particles, it gets people thinking, it gets them refocused,
renewed and re-visioned, and it jump-starts and creates magic dust. These kinds of
discussions can do that. This is what I do.

4
 PART TWO

STAYING COMPETITIVE NOW

AND IN THE NEW ERA
This part of the lecture consists of “Staying Competitive Now in the New Era.
The revolution really is upon us, and it isn’t going to stop. You can call it the
Customer Revolution or whatever you like. But, all of the various energies and lines
of action that businesses are putting forth right now are beginning to converge into a
single focus: winning and keeping the customer’s business by doing the right things
outstandingly well.
The so-called “Quality Movement” is one of the most confusing and frustrating
panaceas ever to hit the business scene. Other companies have focused on the ideas
of customer service, getting employees to be nice to customers, to be happy. You
and I know that there’s no point in trying to make quality a thing unto itself, and no
point in trying to love the customer to pieces if we don’t make a profit or meet the
related business objectives.
Quality and service are no longer two separate issues: they are now one and the
same. Once we leave behind the archaic distinction between products and services,
we understand the only thing that really matters in business is delivering Customer
Value ... which is always a combination of tangibles and intangibles. Quality is not
the objective; service is not the objective; Customer Value is the objective.
The customer buys a Total Value Experience. A Total Customer Value Package.
Retailing is a customer value business. So is banking, direct mail, hotels, shipping
and transportation, health care, construction, insurance, and even governments are
customer value businesses. Managing customer out-comes is going to be the key
to managing today and in the next era. We must move beyond just quality and
processes and focus on perpetually improving the customer’s total experience.

5
 There is a big shift to customer value and organizations must be focused on
adding value for customers, either internal or external. The loss of focus on the
customer as a human being is probably the single most important fact about the
state of service and service management in the Western world during the opening
years of the 21st century.
The customer should not be seen as an outsider. Rather, great companies
see each customer as an individual and make every possible attempt to get inside
his or her mind. Remember: marketing takes place in the mind. Think small to
win big. Single particles. Micro-marketing is making “1” the only number that
counts. Great companies “customerize” by committing themselves through their
research, product design, and service delivery to win customers 1 by 1. And, the
really competitive businesses in the age of 21st-century thinking have a motto of
“zero defects,” but the real concept of today is “zero defections.” The bottom line of
business, again, is to get and keep a customer. A company’s health in the new era
will be measured on the attrition of its customers!
When it comes to quality in the marketplace, the only thing that matters is the
customer’s experience. The Quantum Customer Value package is a combination of
things and experiences that create a total customer perception of value received.
Remember that perception can be more powerful than reality!
What we need to deliver is a complete Quantum Customer Value package. This
is a combination of tangibles and intangibles and experiences and outcomes
needed to win the customer’s approval and secure the right to survive and thrive in our
marketplace. Therefore, the answer to business success lies in creating barriers
to entry by competitors. You do this by bundling the product into a Complete
Customer Package, comprised of process, practices and various intangible features
and benefits that take longer for a competitor to duplicate or surpass.
Dr. W. Edwards Deming, the great quality guru, has said, and I think it’s so
important, “Customer satisfaction is not enough.” You’ve got to move beyond
customer satisfaction to customer delight.” So, we have to understand Quality in
the 21st century must start with the customer, not with the tangible products sold
or in the work process that creates them. This is a profound change in focus; from
activities to outcomes.

6
 Feelings are contagious, too. Remember, the way your employees feel is
ultimately the way your customers will feel. And, I want you to know about MOTs,
Moments of Truth. These are any episodes, however brief, in which a customer
comes into contact with some aspect of the organization and forms an impression
of its services.

7
 PART THREE

CUSTOMERS-HERE AND GONE

Now, the next Wisdom Circle Dialogue I’d like to discuss is about understanding
where have all the customers gone? This is part of Staying Competitive ... Now and
in the New Era. Customer satisfaction is heading down in the United States, a
surprising and troubling trend. Recent measures of the annual American Customer
Satisfaction Index, coordinated by the American Society for Quality Control,
looked at thousands of products and services, from computers to cars to municipal
agencies to movies, rating how hard-to-please Americans view things in the world
of commerce.
Why such dissatisfaction? One reason is that Americans are hard to please.
Defect-free products alone don’t make them happy, nor does kid-glove service.
Ultimately, a business is worth nothing if it fails to satisfy its customers. American
consumers are activists. If they feel mistreated, they walk. Even worse, they talk!
Research shows that people tell only eight friends about a truly satisfying experi-
ence. Deliver one bum ride, though, and more than 20 people will hear about it!
Yet, how little we know about these indispensable strangers, our customers. Are
they happy, restless? Was it good for them too? Will they come back tomorrow? The
answers to these questions profoundly affect any business. Indeed, one could say
they define a business. They also define the meaning of economic activity. In the
larger sense, an economy cannot be described by adding up how many tons of
rebar it makes, how many passenger miles of air travel it logs, or how much wood
its woodchucks chuck per hour. All these count, but in the final analysis what
matters is how well an economy satisfies its customer’s needs and wants.

9
 Three villains that allowed U.S. companies’ overall customer satisfaction ratings
to decrease year after year are number one, misconceived penny pinching; number
two, failure to respond to customer’s rising expectations; and, the third is insuffi-
ciently rigorous ways of tracking customer attitudes. Dial 911. Red lights and sirens!
There is no evidence that customer satisfaction is increasing despite declining
gross domestic product (GDP) and productivity. In fact, as the index shows,
the overall decline is faltering. It has moved in the wrong direction. That’s not
encouraging, especially after years of Malcolm Baldridge awards and thousands of
customer surveys by banks, hotels, and airlines. How in the world can American
consumers, the ungrateful wretches, be less satisfied? Since the customer is always
right, has business done it wrong? Yes. Business has always viewed customer service
as a cost rather than an investment. It has been insufficiently aware of customers’
rising expectations, and it has not yet figured out how to define customer satisfac-
tion in a way that links it to financial results.
Few companies in any industry realize the awesome financial leverage of a loyal
customer base. Keeping customers is a great way to grow. Office of Consumer
Affairs Studies shows that the price of acquiring new customers is five times as great
as keeping old ones. You can fill a bucket a lot faster if it’s not leaking.
As customers get better treatment, they demand even better treatment. What
makes customer satisfaction so difficult to achieve is that you have to constantly
raise the bar, extend the finish line. You can never stop. Here’s a great example of
a conundrum businesses face now and in the New Era. A bank might think it has
done a great job if it processes mortgage applications in three days instead of ten,
but still might not impress a customer who can buy a pair of boots from L.L. Bean
on-line at 2 a.m. Sunday morning and have one-day delivery.
Here’s a test: If you can’t determine the link between increased customer satis-
faction and improved financial results, you’re not measuring customer satisfaction
correctly. Happy customers should exhibit at least one of three measurable charac-
teristics: One is loyalty or retention rates; two is increased business or what I call
“share of wallet,” and three is insusceptibility to rivals theft or competition.
The efforts a business takes to increase customer satisfaction should be the one
that it knows, not just by gut feel, but from rigorous study to have a provable effect

10
on these characteristics. If you want your customers to stay longer, you should find
out what specific factors, such as faster delivery, electronic billing and payment, or
better trained personnel, makes the most difference in your retention rate and how
much that difference is worth. This means measuring and managing customer
satisfaction cannot just be the private preserve of the market research department.
It’s the job of the whole business. It is the whole business.

11
 PART FOUR

PHYSICS, SCIENCE AND THE

NEW ERA OF BUSINESS
Now I’d like to discuss with you the world of physics, the world of new
science, and specifically, understanding the world of quantum mechanics and
quantum physics, as it relates to organizations. Quantum systems have the ability to
replace the politics of conflict and confrontation in small organizations. Quantum
systems can replace collision with a tendency to overlap and combine when they
meet. Quantum study can be applied to human behavior as it relates to the search
for a more flexible, less hierarchic management and organizational structure. We
can discover a more flexible response to the increasing confusion surrounding our
individual and group role and relationships in society at large. Could we build a new
quantum based society? Of course! A new business Ethos? Absolutely!
The main challenge of our times is to link the inner world of the self with the
outer world of society and to see both within the larger context of the natural world.
Yet, we human beings are really physical creatures. The dynamics of both our
bodies and our minds emerge from the same laws and forces that move the sun and
the moon or that bind atoms together.
Physics tells us about the processes of creativity and transformation in the
natural world, and physics is what Quantum Value is all about. The physics of
consciousness tells us about those same processes within ourselves and our society.
Still, to speak of physics in the same context that we speak of something like
consciousness, self-development, or social transformation, will confound most
people who are accustomed to thinking of a science, and particularly of physics, as
a force that has tended to dehumanize and demystify so much of our experience.

13
 The physics of Sir Isaac Newton is now known to be only a limited approximation,
valid only within a narrow range of our experience. It has been superseded primarily
by quantum physics, and more recently still by the exciting new physics of chaos
and complexity theory. There is a whole rich repository of language, metaphor and
illusion in these new scientific ideas of quantum mechanics and Quantum Value, as
well as practical applications for understanding human nature and how we might
raise our consciousness regarding business.
Quantum physics, in particular, almost cries out for Use as a more general model
for a whole new kind of thinking about ourselves, our careers, and our experience.
There is an uncanny and intriguing similarity between the way we are now beginning
to understand about human social relations and how they apply to the business
world.
I hope we can gain much positive understanding about the possible link
between quantum phenomena and brain processes. The main point of all this is
simply to say that there are good reasons for Supposing that the mind actually has
a quantum dimension and therefore, our social and business potential might derive
literally, in part, from this.
My Quantum Value theory is about fundamental physical reality, about the
latest insights of quantum physics and quantum thermodynamics, and how these
insights can relate to our everyday concerns about self and society and our entre-
preneurial business. The whole idea of a quantum society stems from our conviction
that a whole new paradigm is emerging from our description of quantum reality,
and this paradigm can be extended to change radically our perception of ourselves
and the social world We Want to live in.
I’d like to talk to you for a minute more about the world of quantum mechanics and
quantum physics. The quantum world teaches that there are no prefixed definitely
describable destinations. There are, instead, potentials that will form into real ideas
depending on Who the discoverer is and what he or she is interested in discovering.
Only by venturing into the unknown do We enable new ideas to take shape, and
those shapes are different for each voyager.
Three branches that you might want to study at your own leisure would
be quantum physics, self-organizing systems and Chaos theory. Quantum physics

14
challenges our thinking about observation and perception, participation and
relationships, and the influences and connections that are created across large and
complex systems.
Also study self-organizing or dissipative structures, new ways of understanding
the disequilibrium and change we’re now facing, as well as the uses of disorder in
creating new possibilities for evolutionary growth. Information in this context of
our self-organizing universe is the primal energy that structures matter into form,
the necessary ingredient for continued life. Self-organizing structures demonstrate
new relationships between autonomy and control, showing how a system is able
to maintain its overall form and identity only because it tolerates great degrees of
individual freedom.
Classic physics in the now-passe model of Sir Isaac Newton refers to the de-
scription of the world in terms of objects, atoms, marbles, planets and galaxies that
move along precise trajectories through space and time. It is the world of the base-
ball diamond and of the solar system; predictable, familiar, and readily visualized.
Particle physics, on the other hand, describes the quantum world, populated
with such subatomic objects as quarks and electrons, whose existence can be detected
only through the most indirect means. Though every bit as successful in its own sphere
as classical physics is in the ordinary world, quantum physics describes a world
that is unimaginable. It deals as much with potentiality and possibility as with
actuality. It speaks not of certainty but of chance and randomness. Its abstract
mathematical equations defy translation into visual terms. How exciting, how
delicious, how wonderful to be around on this stage when our creativity, our own
knowledge and our desire for the entrepreneurial excitement will come from worlds
we are just exploring.
I believe that a wider appreciation of the revolutionary nature of quantum reality
and of the possible links between quantum processes and our own brain processes
can give us the conceptual foundations we need to bring about a positive revolution
in business and in society.
What’s next in the fascinating world of quantum physics and how will it affect
us in 21st-century organizations? The quantum computer is closer than we think.
Mechanics who design quantum computers hope to use the increasingly spooky
behavior of electronic components as they grow smaller, due to the effects predicted

15
by quantum theory, and turn it into advantage. These quantum mechanics hope to
use one of that theory’s main planks, the uncertainty principle, to allow them
to design machines that can accomplish “massively parallel” calculations which are
way beyond even the theoretical capabilities of conventional computers.
And in discussing Quantum Value, I’d like to talk about this formula: K plus C
(doubled) x E = Quantum Value. This formula helps us capture the essence of the
individual in the New Age because it’s so simple to grasp and assists the entrepre-
neur, the business person, in knowing his or her potential. It’s adding Creativity to
Knowledge to make added value.
This is my formula for the New Age potential of the individual and the company.
Quantum Value of the Knowledge Era again is K plus C (doubled) x E = Quantum
Value. Knowledge plus Creativity doubled, times Unique Life Experience equals
Quantum Value for the 21st century.
Quantum Value is making a total human being and/or company for the new
age by self-awareness of Quantum Value theories and education. Sort of a self
realization, if you will. It’s the ability to create value in the new era. It’s dynamic in
nature. Intellectual capital creates human capital, structural capital, customer
capital and financial capital. Using knowledge and creativity in business gained
from unique Life Experiences to obtain Quantum Value. And here’s a framework for
understanding intellectual capital as Quantum Value.
Intellectual capital, or “wetware,” the value of knowledge in an organization,
can leverage the organization’s hidden values to meet customer expectation in the
new era by using Knowledge and Creativity in business, plus gained unique Life
Experiences to attain Quantum Value, It’s our ability to create real Quantum Customer
Value in the new era.
This is the excitement of a worldwide creation truly leading human change and
thus revitalizing business. Quantum Value causes individual change and then com-
pany change. It makes us leaders in the next quality movement globally. Quantum
Value is the new era Doubler Factor. Everyone must have it. In the Knowledge Era,
intangible assets are the real source of strength for the firm to distinguish itself in
the marketplace. Knowledge plays a key role in the formation of intangible assets

16
and is increasingly referred to as intellectual capital. And remember the four
kinds of capital: human capital, structural capital, customer capital, and financial
capital.
Quantum Value is a framework for understanding intellectual capital as
Quantum Value. Quantum Value is making a total human and/or company for the
new age by awareness and education of Quantum Value theories. Quantum Value is
a philosophy for doing business in the 21st century that delivers much more added
value and huge customer-perceived value, which is vital to staying competitive now
and in the next era.
The Quantum Value individual for the 21st century will understand creativity of
the universe, and knowledge awareness, and have a valued life experience component.
Quantum Value also brings about a total human being in the 21st century. It teaches
organizational knowledge; it teaches intellectual capital awareness; it teaches
customer service focus and soft and intangible assets; New Age marketing; visionary
leadership; conceptual thinking; creativity and customer-defined quality; and team
thinking.
Quantum Customer Value, when it’s present in a company, can result in a greater
percentage and coverage in the penetration of market segments. It can result
in longevity of relationships with customers. It multiplies the perception of huge
added-value and it leads to a higher customer satisfaction index.
Quantum Value and Quantum Customer Value affect the company by increasing
the individual’s competency levels and adds to the number of completed new
products per year. It increases the capability for huge new arenas of teamwork,
and pushes our capability to develop and maintain larger relationships. Quantum
Value can result in more revenue per employee and more income from new revenue
streams. So, Knowledge plus Creativity doubled (the Doubler Factor) times Unique
Life Experience, as a component, equals Quantum Customer Value.

17
 PART FIVE

A LARGER WORLD
The next part of the Wisdom Circle Dialogues and discussion will concentrate
on the part of Quantum Value that has to do with world thinking, because world
thinking and world events are reshaping our future. How the Quantum Value move-
ment fits into this, I think, is extremely important.
When Robert Noyce stumbled on the conductive qualities of silicone sand and
the microprocessor, the defining technological concept of our age, he initiated
a global transformation of our social and economic life. What is the promise of
George Gilder’s telecosm for the enterprise in the microcosm? The law of the
microcosm essentially says that if you take any number of transistors functioning as
electronic components and put them on a silicone wafer, you net N to the second
power, performance and value. In other words, the more transistors you can configure
on a single sliver of silicon, the better, faster, and cheaper they are. What is meant
here is that the cheapest computers will prevail.
Moore’s Law, which postulates that the performance of Information Technology
will double in 18 months, while the price point of the original performance drops
by 50 percent in the same time, is only causing the interval between customer need
and satisfaction of that need to grow shorter and shorter!
Let’s talk then about niches. Niches are small, delicate places. In the science of
evolutionary biology, we are very much aware of just how fragile life is in these highly
competitive environments. When you occupy a niche, you often find precious little
time to respond to a competitive opportunity and strengthen your position; or to
fend off the challenge of a predator. We, and those around us, must be observant,
technologically equipped, and able to think, decide and act faster than ever before if
we’re going to survive in the niches.

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 In today’s economy, we can’t just sit there. Planning in a niche market economy
must be incredibly dynamic. Strategic marketing plans for the future look more like
personal journals and e-mail logs than they do the neatly stacked tomes that
compile dust on shelves today.
A business or a market is not like an erector set you bolt together. It’s like a life,
spontaneous, reckless, mostly unpredictable and chaotic. It’s like the life force that
could not be restrained in “Jurassic Park”. It’s the emergent, synergistic miracle that
the Austrian economists like Schumpeter, Von Mises, and Von Hayek have taught
us occurs when people are free to live their lives.
Niche markets are by definition, savvier and better informed than the mass
market. And the customers of those groups hunger for intellectual nourishment.
Niches are made up of individuals who possess specialized knowledge. These are
customers whose background, education, training, and experience make them
expert, at least to some degree, in a particular area of special interest. Marketing
communications directed at a niche market must then be very substantive and
content-rich. There are currently well over 15,000 magazines, trade or special
interest, published in this country and 100,000 books published every year, all aimed
at niches.
Remember, too, the balance of power will continue to shift towards small
companies. And that trend has been demonstrably underway for most of the post-
war era in the United States. Small companies are becoming more and more potent
because a single person at a workstation can now command the creative power of a
factory tycoon or broadcasting magnate of the Industrial Era. It represents a huge
increase in the creative communications power of individuals.
It doesn’t matter whether you’re in goods or you’re in services. Today we’re all
beginning to understand that the ultimate source of differentiation in the market-
place is customer-defined quality. Just as quality has become the imperative of all
our business processes, we would submit substance, likewise, must become the
imperative of all our marketing communications. As markets fragment and disin-
tegrate, our entire marketing challenges must become the satisfaction of individual
customers in these tightly-defined niches. To satisfy them requires genuine,
continuously improving quality, and to persuade them, will require increasingly
more substantive presentations. Yet, we dare not deliver substance without style.

20
 A typical issue of The New York Times contains more information than a citizen
of the Renaissance considered in a lifetime. More new products were introduced in
1995 than existed during the entire 19th century. The noise level rings at high
decibels, and to break through the clutter will still require, more than ever, just a
clever phrase of the artistry of visual imagery in order to entertain in the way
Webster’s dictionary defines entertainment, which is to “hold the mind.”
But we’re also entering an age in which we are forced to consider stopping
power. We’ll not get away with tricking and teasing people to consider our messages
in this new world. In many cases, they will decide to consider our messages on an
on-demand basis, knowing or believing that they’ll find the substantive context they
seek beneath the next interactive button.
It’s a world in which we need to be as concerned with the communications we
have with customers as we have, therefore, been with communicating to or at them.
On the whole, marketers are much more prepared to talk to customers than hear
from them. People in this New Era who think you can’t go broke underestimating
the intelligence of their customers are going to go broke.
I’d like to talk with you for a minute about the global aspect and some things that
are happening on the larger playing field ... and certainly playing fields are moving
these days with rapidity. Somebody asked me recently if I like to ski. I said “yes,” but
I told them I was raised around the sport of surfing-and they asked me whether I
thought skiing was more fun, easier to do and provided more thrills than surfing.
And I said, “No” the challenge of surfing is even greater, because in surfing the hill is
moving too. There’s another dimension, another dynamic. That’s sort of what’s going
on in the business world today. Playing fields are shifting and moving. But the bigger
the world’s economy, the more powerful are its smallest players. In the 21st century,
particle physics, which is the study of the smallest structures in nature, joins forces
with cosmology, which is the study of the universe as a whole.
It used to be “bigger is better.” But now it’s the smaller, speedier players, more
flexible and nimble, that are going to win. In the process, the telecommunications
industry, which encompasses telephones, televisions, computers and consumer
electronics, has moved into a period of thrashing, creative chaos. Today there are
more microprocessors, or computers on a chip, than there are people on earth. The
ability to process enormous amounts of information keeps expanding.

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 PART SIX

NEWELLIAN PARADOX
Here are some thoughts about the Newellian Paradox. The Newellian Paradox
basically postulates that the technology revolution is gaining such momentum, and
as it gains the velocity and then the momentum, the role of the individual’s thought
power and knowledge creation will be imperative. That’s the paradox. The faster
we receive technology and information, the more we will need to be grounded in
leadership, ethics and free-form thinking to solve problems and achieve life satisfac-
tion. The role of the individual becomes singularly more important as technology
advances. From the field at Kitty Hawk, or the Iron Age we’re just leaving, eye-to-eye
contact between people, hand shakes, personal commitments and a helping hand to
nurture and teach the unfortunate of the world will be the measure of human beings
in the 21st century. The Newellian Paradox basically says the role of the individual’s
thought power and knowledge creation and leadership will be imperative as the
technology revolution gains momentum.
Here is something about emerging markets that we’re all watching constantly.
Markets can emerge and markets can change, or markets can disappear. Looking at
emerging markets, barring any widespread plague or catastrophe, the world popula-
tion will increase by nearly three billion over the next 25 years, with four out of five
people living in developing countries. As the average in wealthier economies climbs,
the once touted “youth boom” is a bust.
Watching the shrinking of the younger population globally is astounding. Not
since the dying days of the Roman Empire have we seen anything like this. In
every single developed country, including China and Brazil, the birthrate is now
well below the replacement rate of 2.2 live births per woman of reproductive age. In
the world of politics, this means immigration will become an important and divisive
issue in all rich countries. It splits the understanding of marketing into two distinct

23
groups: a middle-aged deter-mined mass market and a much smaller youth-
determined one. Its because the supply of young people will shrink that we will see
the creation of new employment patterns to attract and hold the growing number of
older people, especially educated older people.
What we’re just now grasping is that a growing number of older people, say those
over fifty, will not keep on working as traditional full-time, nine-to-five employees,
but will increasingly participate in the labor force in many new and different ways:
as temps, as part-timers, and as consultants on special assignments.
The results of this baby boom will not be the same as the impact of the youth
culture of the 1960s in America. The world is a bigger and more diverse place, and
the social mood is different from what it was 30 or 40 years ago. But young people
in those days knew some of the uncertainties to watch out for. There is a generalized
feeling that the circumstances of modem life to this global teenager are new and
dire, that something like a global crisis is under way, and that they, the young, must
find some original solution and resources to apply to them. This young revolution
still is most likely to be entrepreneurial and capitalistic.
There’s also more market-based democracy than ever before. From 22 demo-
cratic states out of 154 countries in 1950, the year 2000 saw 119 of 192 as democratic
states. Concurrently, state-controlled economies are transitioning to market-based
systems that support more stable operating environments and the adoption of
internationally accepted rules of competition, notably the World Trade Organization.
These huge markets, with growing demands for adequate food, health care, educa-
tion and jobs along with affordable products, present unprecedented opportunities
and commensurate risks.
Those are just some thoughts on emerging markets. How do you understand
them, how do you watch for them, how do you target them, and how do you create
Moments of Truth and quality movements within emerging markets? I’m often
astonished to observe just what a frontier discipline marketing really is and continues
to be.
Typically, advertising is the stuff of mass markets. In many cases, the market
niches have been so small, remote and obscure that our cost in reaching them may
often be expressed in hundreds of tens versus the conventional cost-per-thousand

24
arithmetic of mass media. But what a fortuitous accident of history it has been for us
to be born at the advent of the microprocessor. There is an emerging new character
of marketing communications in general. We must realize how information tech-
nology will enable us to be increasingly more effective in performing new miracles
in our client’s microcosmic markets.
Here’s an astounding concept that illustrates the importance of e-commerce.
New distribution channels are changing who the customers are and, not only what
they buy, but also how they buy. They change consumer behavior, saving patterns,
the basic structure of industries, and the entire economy. This is happening now, not
only in the United States, but increasingly in the whole of the developed world, and
in many emerging countries, including China.
Whether you’re in goods or services today, we’re all beginning to understand
that the ultimate source of differentiation in the marketplace is customer-defined
quality. Just as quality has become the imperative of all of our business processes, we
think also substance, likewise, must become the imperative of all of our marketing
communications. As markets fragment and disintegrate, our entire marketing
challenge is becoming the satisfaction of individual customers in these tightly
defined niches. To satisfy them requires genuine, continuously improving quality,
and to persuade them will require increasingly more substantive presentations.

25
 PART SEVEN

THE KNOWLEDGE ERA

Continuing on with our Wisdom Circle Dialogues teaching discussions under
the title of “Staying Competitive Now and in the New Era-Tools for Transformation,
What We’re Going to Need to Stay Competitive.”
I’d like to discuss now the whole understanding of knowledge and using knowl-
edge to compete. In the knowledge era, the intangible assets are the real source of
strength to distinguish a company in the marketplace. It cannot be easily duplicated
by competitors or obtained instantaneously.
Intellectual capital is a dynamic commodity, and again, it’s the sum of the
human, structural and customer capital. It’s the unique difference in tacit knowledge
that makes valuation difficult. In the knowledge era, the value chain is really changing
from a production focus to a customer service focus. And, the human capital
aspect of a business affects whether it is building or depleting customer capital. In
a knowledge economy the bottom line of an organization is geared to thrive by looking
forward to the future by focusing on renewal and development indices related to
intellectual capital.
Entrepreneurial leadership, flexibility, agility, and nimbleness in a changing
marketplace, or marketspace, are going to be based on knowledge gathered and
creatively applied. Life is a creative and evolutionary happening. The New World
view is a messiness-norm, meaning messiness is normal. Chaos is too much infor-
mation. Life is a system on the edge of out of control.
The 80-20 rule of perception is something that I want to discuss with you and
help you understand. Twenty percent is in viewing something, 80 percent is based
on information that is already inside us. Twenty percent of seeing is disturbing the
80 percent.

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 Companies in the new era need to develop and find “wild geese.” They’re the
ones that make change happen, and change is the new name of the game. A
disturber is the New Wave person who makes paradigm shifts inside companies.
I am a disturber. Are you? Innovation technology! Here’s a quote: “If you’re not living
on the edge, you’re taking up too much space.” Many companies are not improving
knowledge, understanding or gathering. Managing and valuing intellectual capital
will promote organizational learning and dynamic generation of organizational
capabilities. A new systemized approach to tracking and managing intellectual capital
is required in addition to the standard book value of the official balance sheet.
If growth of customer’s expectations exceeds the growth of human and structural
capital, it will have an exponential impact on customer capital. Knowledge is every-
one’s job in the company, to create it and to use it. And here’s the key: Delivering
organizational knowledge through people. You have to use organizational knowl-
edge as the larger picture and then deliver it through your people. When you put
together a group, every individual contributes to the system, and then it becomes
something totally different. Systems are different than the sum of their parts. They’re
not predictable just by studying individuals in isolation.
The words knowledge industries, knowledge work, and knowledge worker are
only forty years old. They were coined about 1960, simultaneously but indepen-
dently: the first by a Princeton economist, Fritz Machlup, the second and third by
Peter Drucker.
I want to talk to you for just a minute about the understanding of the property
of emergence. Now, what that means is you put something together and it will be
something new. Knowledge is emergent. Put people together in a room and some-
thing new will occur. And this is creating huge impacts in the performance of an
enterprise.
An enterprise is a combination of intangible assets, of course, and is the sum of
human, structural and customer capital. Capital is any source of profit, advantage,
assets or leverage to create value. Intellectual capital is a dynamic commodity. And
this formula that we use-Knowledge plus Creativity (doubled), times Unique Life
Experience equals Quantum Value-allows an organization to use hidden values that
will be required to meet tomorrow’s customer expectations on an ongoing basis.
It’s really creating value in a totally different way. An intensive focus on new ways

28
of thinking about the value of knowledge in companies is receiving attention from
many areas around the world. The search is on for the methodology in which
intellectual capital can be managed, transferred, generated and measured. It is now
understood that intellectual capital impacts the financial performance of an enter-
prise. But it is an elusive aspect of corporate understanding. The paradox is that the
more it’s used, the more there is of it. You can’t store it because it has a short shelf
life. Intellectual capital is a dynamic commodity and one that is gaining a new label
under the heading of “Organizational Knowledge.”
Heretofore, tangible assets tended to receive the most managerial attention,
along with a disproportionate amount of the resources available for investment. In
the knowledge era, however, the intangible assets are the true source of strength a
company has to distinguish itself in the marketplace. This competitive advantage
can’t be easily imitated by others or obtained instantaneously.
An enterprise is a combination of intangible assets, intellectual capital, finan-
cial capital and tangible assets. Tangible assets are required for business operations:
plant, equipment, building, elements, and physical infrastructure. Intangible assets
are the key to a competitive advantage in the knowledge era, and they include intel-
lectual capital, technology, know-how, customer loyalty and business processes.
Intellectual capital—here’s a thought—the more it’s used, the more of it there
is. And you can’t store it. It really has a short shelf life. Intellectual capital is a
dynamic commodity. And remember, the dynamics of intellectual capital are
delivered through Quantum Value and is that Knowledge plus Creativity (doubled)
times Unique Life Experience and that equals Quantum Value.
Continuing with our discussion on “Staying Competitive Now and in The New
Era”, we’ve talked about knowledge as the first component of the Quantum Value
formula. Let’s talk about the “Doubler factor, Creativity.” When knowledge is
gathered and then creatively applied, we have that thing that we call the “Doubler
Factor.” The creativity we can apply is the real “Doubler” over and above Knowledge.
We can know a lot of things. But what we do with this, to get and keep customers
or to be more competitive in the marketplace, takes immense Creativity. How does
the creativity of companies by doubling knowledge work? Well, by Knowledge and
Creativity, doubled, plus Unique Life Experiences.

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 The “QV” in Our formula equals Quantum Value, and that comes through
flexibility, nimbleness and creative solutions. Creativity is the maximum use of
knowledge. Creativity is the multiplier of knowledge. Creativity is the fulfillment of
knowledge. Add value to information to make knowledge; add creativity to knowl-
edge to make added value.
Western industrial society is faced with challenges that may well imperil
civilization as we know it. The old solutions and procedures for dealing with political
and social problems no longer appear to work. Hope seems to lie in beginning to
seek new creative solutions, new approaches and breakthroughs for the global
dilemmas We now face. Any breakthrough to creativity that has led to past social
and political advances has high promise for helping us in our present travail.
It appears that We are in the middle of yet another Such transformation of Our
thinking. This time, though, the subject is not the shape of the earth or the energy
at the heart of atoms, but what might be the most awesome pulse of all, the source
of human creative power. Because this emergent field of knowledge is intimately
related to our ideas about Our own limits and abilities, the changes in our personal
lives, and in Our entire society, are likely to be scientifically valid methods for culti-
vating breakthrough experiences.
The current change is happening at a much faster rate than previous system-
wide transformations. Latest change will become evident in less than a generation.
We must make radical changes in our present beliefs about the limits of human
creative capacity.
Creative thinking may simply mean that We understand the realization that
there’s no Particular virtue in doing things the way we’ve always done them. We
speak of a capacity for creative breakthrough, a capacity that might be independent
of talent or field of endeavor or life circumstances. The role of inner-listening in our
cultural history is largely ignored or dismissed. Inner-listening might be the capacity
that lies dormant with everybody, waiting to be awakened.
Creativity is not just for professional artists or wild eccentrics. It’s everyone’s
birthright. Creative expression is the life lived creatively, originally, true to one’s
heart. Creativity is the combination of your life knowledge and your imagination.
It’s expressed in forms that are original and of value to you and others. Creativity
is a performing art! Having creative ideas, though, is not enough. They must be

30
expressed in a tangible way. Of the nearly seven billion people on this planet, there
is no one like you. No two of us share a common fingerprint. No one has a life like
yours. Just as your fingerprints are unique to you, so is your creative expression.
The difference between creative people and those who are not is purely a
matter of self-perception. If you perceive yourself as creative, you are. If you don’t,
you won’t be.
A life creatively lived is a life joyfully lived. Joy is a state of mind. Joy is the essential
sense of being connected to the Universe. Creativity is the component to living a
joyful, meaningful life. The one overriding quality that joyful people share is that
they’re living creative lives, expressing their uniqueness, singing their own song. By
expressing yourself creatively through your work, your hobbies, your personal life
and relationships and in your business, you can become the joyful, fulfilled person
you were meant to be.
Our planet is running out of natural resources. The only resource we have in
abundance is human creative potential. Quantum Creativity is the capacity that we
each possess to surpass ourselves, to go beyond our former limits, to exceed our
highest self-expectations by continually setting new standards of performance. You
experience Quantum Creativity when you realize your creative potential is limitless
in any area you wish to pursue.
Here are the four steps of the creative process that were first identified in the
late 19th century by the German physiologist and physicist Hermon Von Helmholz
and later expanded upon in 1926 by Graham Wassas in the “Art of Thought.” The
four steps of the creative process that become such an important component of the
Quantum Value individual are: (1) preparation; (2) incubation; (3) illumination;
and, (4) verification.
The first one, preparation, includes your education and experience regarding
the problem that you are trying to solve. Incubation, the second phase in the
creative process, is when the magic of creativity transforms the raw material of
preparation and begins to percolate on an unconscious level, so the new idea can
surface, Incubation is the critical process of letting the problem go, putting it on the
back burner and delegating the problem to your subconscious mind. It gives your
subconscious mind an opportunity to “quiet” the incessant internal chatter. One can

31
refer to incubation as “time out.” The value of time in liberating creativity cannot be
overstated. Taking “time out” is a prerequisite for reaching new creative heights and
further self-expression. Incubation is “down time.” And “down time” is necessary
for Quantum Creativity.
The third Part of the creative process is illumination. This is the moment when
an idea or solution explodes into your mind. Carl Jung called this awareness level
“Primordial mind.” Others call it “reverie.” Many people experience this heightened
creative awareness just before drifting off to sleep. Sleep researchers call this the
hypnagogic state, when our mental images are a mixture of dream pictures and
conscious thoughts. The hypnopompic state, on the other hand, is the one you
enter upon Waking up, when the brain is in the theta wave stage, also filled with a
mixture of dream and Controlled images. Both these stages are trance-like states
and have been called the “gateways to creativity.”
Then, the last one is verification. This state simply involves trying out the solution
and making sure it works. Sometimes ideas need time to ripen.
Remember too, the key to longevity is creativity. There is a direct connection
between creative thought and involvement in life and the production of epinephrine
by the adrenal gland. When the challenge stops, the Supply is turned off, the will to
live atrophies and the body chemistry no longer functions. Disease is combated by
will. The proper prescriptions are Written by the body itself but only in a condition
of balance and a state of grace.
Also, I Want you to understand the Word “teleology.” That’s the intuitive
conversion by brain and mind of special case subjective experiences into gener-
alized principles which permit the individual to reform the environment so as to
provide ultimately higher advantages for mankind and to inspire others to do so
likewise. Teleology.
Continuing on with our Wisdom Circle discussions on Staying Competitive
Now and In The New Era, I’d like to talk to you again about new ways of thinking,
flying upside down, outside the lines kinds of thinking.
Much of what I do inside companies is getting them and their component
individuals to look at new ways of doing things; to look at new ways of thinking,
free-form conceptual thinking.

32
 Make it a practice to keep on the lookout for novel and interesting ideas that
others have used successfully. Your idea has to be original only in its adaptation
to the problem you are working on. Emil Chartier, the French philosopher, said,
“Nothing is more dangerous than an idea when it is the only one you have.” Two-
time Nobel prize-winner Linus Pauling said, “The best way to get a good idea is to
get a lot of ideas.” He was describing the low probability nature of creative thinking.
The odds that any particular idea will help solve your problem aren’t that high. It’s
important to get as many right answers as you can. That’s why a good photographer
takes as many photos as he or she can. Shoot the place up! One will be great.
Nineteen out of 20 ideas aren’t any good, but it’s because I can generate so many
ideas, I’m able to come up with a few exceptional ones. Apple Computer inventor
Steve Jobs says, “Innovation is usually the result of connection of past experiences
and luck.” It’s difficult to see the picture when you are inside the frame. And here’s
another great quote: “The dog that trots about finds the bone.”
Much of creative thinking involves connecting two previously unconnected
ideas and turning them into something new. And here’s a little joke about different
kinds of engineering, software engineering, systems engineering and knowledge
engineering. Software engineering is like looking for a black cat in a dark room.
Systems engineering is like looking for a black cat in a dark room in which there is
no cat. Knowledge engineering is like looking for a black cat in a dark room where
there is no cat and someone yells, “I’ve got him!”

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 PART EIGHT

YOUR UNIQUE LIFE EXPERIENCE

Now the Life Experience component of the formula, Knowledge plus Creativity
(doubled) times Unique Life Experience equals Quantum Value, is an understanding that
includes such things as your own upbringing, your own experiences, the uniqueness
of you as an individual, and your visionary leadership.
It’s the higher ethical standard of what you do inside companies and outside
communities. My belief is that the most successful organizations in the future will
be those that take seriously, and sustain through action, the understanding that their
competitive advantage is based on the development and growth of their people. The
men and women who are guiding the entrepreneurial ship into the future will be
different leaders than we’ve known in the past.
In the new era, leaders are discovering that the systems over which they preside
require continuous renewal. One sees organizations whose structure and processes
were designed to solve problems that no longer exist. If regenerative forces are not
at work during this time of undulating playing fields, the demise of the entity can be
predicted. Remember the saying: driver, passenger or roadkill.
In business the game has changed. Strange new rules are appearing. The deck
has been shuffled and as someone said, the Jokers have been added. We’re on the
verge of a transition from one world economic order to another—a fundamental
shift that has the potential of bringing about one of the most exciting periods in
human history. We are in the early years of a new century when profound changes
are taking place that cause us to have to reinvent not only our organizations and
institutions, but ourselves as leaders. This is where creativity occurs.
Leaders today are by no means ordinary people. They work out there on the

35
frontier where tomorrow is taking shape, and they serve as guides. Guides, to things
as they are and as they will be. Leadership is a fundamental and profound engage-
ment with the world and the human condition. Leadership is fir being and then
doing. Everything that the leader does reflects what he or she is. The concept of
visionary leadership frames the successful company in the new Quantum Value era.
We’re all made of our experiences, and each one of us is terribly unique. How to
develop the tools we need to adapt to change is now coming out at a velocity speed
that focuses on personal achievement, contributions to others who are in need and
the understanding of the Newellian Paradox: that as technology revolution gains
momentum, the role of the individual and his or her thought power and knowledge
creation will be imperative.
The faster we receive technology and information, the more we will need to
be grounded in leadership, ethics and free-form thinking to solve problems and
achieve life satisfaction. As I discussed earlier, eye-to-eye contact between people,
handshakes, personal commitments, and a helping hand to nurture and teach the
unfortunate of the world will be the measure of human beings. That’s the Newellian
Paradox.
Here again, leadership, ethics and free-form thinking can lift the individual and
the corporation or small business to new levels of contributions. This combination
is gained through methods used in my own life as a business advisor.
I want to tell you about the new wave of the 21st century and how to face it
without fear, but rather with optimism and the New Age tools each one of us already
has inside as a gift of human spirit. The Quantum Value formula shows you how to
be a 21st-century individual by starting now in the first decade of the new century.
The 21st-century organization virtually demands visionary leadership. The rates
of change and effects of global complexity conspire to make any particular vision
useful only for a limited time. Visionary leaders will have to be a step ahead of those
they lead and in the business world of their competitors by dreaming about what the
future holds and what role the organization should play in it.
Visionary leadership will be as indispensable for renewing organizations as for
starting up new entrepreneurial and nonprofit ventures. The visionary leader has a
role as change agent, promoting experimentation, creating a sense of urgency for

36
change and establishing internal cultures in which risk-taking and broad participa-
tion are highly valued.
“Visionary leaders have a duty to issue a stirring call to action, a desperate sense
of dissatisfaction with the present and a muffled cry for hope for a better future.
What else can it be but the beginning of a grassroots search for vision? It remains
only to point out that there are millions of people out there: workers, young people
and ordinary citizens starved for a sense of direction. “It’s not a thousand or even a
million points of light that are needed, but hundreds of powerful beacons to show
the way,” proposed the late Dr. John Gardner. He was Holder of the Miriam and
Peter Hass Centennial Professorship in Public Service at Stanford University and
founded Common Cause.
Visionary leadership can be developed or at least improved. Indeed, the country’s
future demands it, our children deserve it, corporations cannot survive without it,
and time is running out. It’s time for you to lead the way, to state your vision loud
and clear and to put your organization at the leading edge of a renewal that will
make the next decade one of optimism and promise for the people who work with
you and for the entire country.
Vision is your key to leadership, and leadership is the key to organizational
success. A leader’s vision also inspires action and helps shape the future. But unlike
a personal vision, it does so through the powerful effects it has on the people who
work for you or otherwise have an interest in the leader’s organization.
Leaders are pioneers. They are people who venture out into unexplored territory.
They guide us to new and often unfamiliar destinations. People who take the leader
role are the foot soldiers in the campaign for change. The unique reason for having
leaders is that their differentiating function is to move us forward. Leaders get us
going someplace.
Leaders take charge, make things happen, dream dreams, and then translate
them into reality. Leaders attract voluntary commitment of followers, energize them
and transform organizations into new entities with greater potential for survival,
growth and excellence. You need to be a direction-setter, a change agent, a spokes-
person, a coach.

37
 I want to talk for just a minute about vision. A vision is a realistic, credible,
attractive future for your organization. A vision is only an idea or an image of a
more desirable future for the organization, but the right vision is an idea so energizing
that it, in effect, jump starts the future by calling forth the skills, talents and resources
to make it happen.
A vision is central to leadership. It is the indispensable tool, without which
leadership is doomed to failure. And measuring leadership is a part of measuring
quality.
Here are some thoughts about Unique Life Experience and this component that
values our diversity and our life’s work and our uniqueness. Each of us is so terribly
unique and must be valued, and then that value must be added into the formula and
measured to equal Quantum Value in the new area.
Here’s how, perhaps, you can gain a better understanding of the value of your
own Unique Life Experience component. Sometimes I like to do what I call a life
photograph or a life portrait. I put a piece of white paper up on the wall and ask
somebody to use a crayon and trace my outline onto the vertical butcher paper on
the wall. Then I try to find a couple of good photographs of myself that I’ve taken in
recent times and put them through a copier and enlarge them and paste them up in
the area of the face on the cutout drawing of myself on the wall.
Then I like to draw lines off to the side from all points of the body. And I try to
write on those lines important, interesting, unique differences about myself: who I
am, where I came from, my successes, my failures, my unique upbringing, and some
of the successes I’ve had in the business world. And pretty Soon a life portrait begins
to emerge. The more you can spend some time identifying and mapping the unique-
ness of your life portrait, I think the more understandable and more credible that
uniqueness will become in valuing your component in the Quantum Value formula
for the future.

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 PART NINE

ORGANIZATIONAL SUSTAINABILITY
IN THE NEW ERA

Organizational Sustainability is a concept that must be understood and applied

because it focuses on social responsibility and citizenship and a new theory of
“triple bottom line” thinking. It doesn’t matter what you want to call it, these
concepts collectively represent the greatest movement for change confronting the
business world today.
When organizations grasp the Sustainability Concept, they understand it is the
umbrella for an expanding set of challenges that touch the most important aspects
of business performance, its competitiveness and even survival. The term “stakeholders”
is very important to business today. My definition of stakeholders is everyone and
every entity that a company affects, and everyone and every entity that impacts
that company. How a business engages relevant stakeholders and addresses its own
Organizational Sustainability can have a very direct bearing on its access to markets
and capital, its ability to attract and retain a quality workforce, the fine-tuning of its
operations, and its reputation and brand value.
“Triple-bottom line” accounting is coming to represent how a company’s
environmental, social, and economic performance are considered, measured, and
reported in a similar way as financial reporting. John Elkington, noted author and
founder of Sustainability, a foundation in Great Britain, first conceived the phrase
and its benefits to modem organizations. It has been used to report social, environ-
mental and economic performance. Yet, many companies and entrepreneurs have
been slow to be persuaded there really is a business case to justify the investment
and difficult decisions, especially in small and medium-sized businesses. Next Wave
companies must use these theories to better align their businesses with society, thus

39
creating added-value to their own financial bottom lines as they support societal
interests.
I want you to understand that creating new kinds of value and reporting it at
the bottom line, using accepted accounting and reporting methods, can really drive
change ... and at a speed that quickly impacts the whole global economy and society
at large. Internal value creation is what business does best. Its how a company
devotes most of its resources and innovation, how it rewards its employees and how
stakeholders judge it.
The increasing speed of organizational sustainability as a focus concept is being
driven by global mega-trends that are rapidly creating a new operating environment
for business in the 21st century. Governments globally are repositioning themselves
in this manner. Business and society are more powerful and more globally orga-
nized with this focus. Everyone is better connected and appreciation is growing of
just how unsustainable our present socio-economic paradigm has become. A great
picture of this vast sweeping concept is featured in TOMORROW’S MARKETS,
jointly published by the World Resources Institute, UNEP and the WBCSD.
Organizational performance metrics haven’t changed much in the last century
and are increasingly less useful as a measure of value and future growth prospects.
Ordinary balance sheets and income statements don’t reflect the value of the
organization’s intellectual capital, human capital, social capital and structural capital,
the people, the innovations, the ideas, the processes and, to a great degree,
the reputation, which will have a huge effect on the growth and success of the
venture. It is largely these intangibles that are the difference in the valuation of an
organization.
Environmental issues, for instance, involve impacts to climate change, water
usage, habitat and species protection, and sustainable agriculture. Our planet is
rapidly being depleted of its soils, fisheries and coral reefs. Long term measures
are needed to slow and reverse these negative trends. New Era organizations must
understand that huge leaps are needed, but also the will and resources to change
existing policies and infrastructures. Likewise, our social concerns expressed in
volunteerism and the helping to create a “changed human being”are vital. According
to Labor Department’s newest estimate, 59 million Americans performed volunteer

40
work this past year. They tutor, mentor, build affordable housing, teach computer
skills, clean parks and streams, and help communities respond to disasters.
The connection between organizational sustainability performance and stake-
holder value may be the most compelling reason to get many companies to pay
careful attention. When companies can “grok” organizational sustainability concepts,
they out-perform their competitors as well as the leading market indices. The
winning concept is that these companies are able to deal with complex organizational
sustainability issues and usually have superior employees, managers and manage-
ment structures. Many companies are focusing on improving their rankings to
increase their appeal to investors, bankers, potential employees, and customers-
at-large in the changing world of “survive and thrive” business in the new century.

41
 PART TEN

NEW AGE MARKETING

This teaching discussion, Wisdom Circles on Staying Competitive Now and in
the New Era, has to have a section on New Age Marketing. I want to start with
a basic concept that most buyers and consumers or clients really feel there’s not
much difference among top competitor’s services and products. And if that’s the
case, proven through surveys and research, you’re really going to have to find your
own unique identity. Customers will have to be coaxed to consume, and they’ll only
buy what they really want.
Consumers are putting in remarkable amounts of time and effort to get quality
at a bargain price. And relationship marketing, my goodness, there’s nothing more
important, because we know that the profit is not in the first sale. It takes repetitive
sales to really earn that profit. And that takes an ongoing relationship. Developing a
dialogue with your most important customers is known as relationship marketing.
Marketers had better get themselves out of the transaction business and into the
relationship business fast.
In brand identity, the future holds an array of opportunities. There will be more
opportunities for an entrepreneur than ever before, but these opportunities will also
be shared by fewer people. So if you own or represent a small growing company,
you’re going to have to develop a unique brand identity.
Again, we’ve learned that most buyers believe there’s not much difference among
top competitors’ products. Therefore, the method of bringing your product to your
customers may well be more important than the product you bring. Maybe you’ve
already developed a workable and successful brand identity for your product or
service.
Try this easy test to see if you’re succeeding. You’re winning if your customers:

43
one, understand what makes your product or service special; two, understand your
product or service well enough to be able to describe it clearly; three, are willing
to pay more for whatever it is that makes your brand so special; and four, feel so
strongly about your brand that they will defend it under attack, even at a higher
price.
And here’s just a bit of thinking on understanding tactics and strategies. A tactic
is a competitive mental angle. A competitive angle means there must be an element
of differentness. What is your element of competitive differentness? How are you
competitively different? And, how is that perception understood by your customers?
And, is that perception by your customers the same perception that you have of
your own product or service?
A strategy, however, encompasses coherent marketing activities. Price, products,
distribution, advertising, sales promotion ... all of the activities of the marketing mix.
They have to be coherently focused on the tactic. A strategy is a coherent marketing
direction. Once the strategy is established, the direction shouldn’t be changed.
In marketing, as in warfare, the safest strategy is rapid exploitation of the tactic.
Rest is for losers. Winners keep the pressure on. A marketing campaign consists of
holding onto your customers while at the same time attempting to take customers
away from your competitors. Marketing is a battle of concepts, not products.
The true measure of a tactic is whether or not you have a concept or an idea to
drive your business and whether or not it is truly a competitive difference. A basic
attitude is needed from managing businesses to managing change. And it’s done by
moving with the market. You steer your ship by trying to catch the long term tides
and dealing with perceptions. Dealing with perceptions. Remember, perception can
be more powerful than reality.
What is your defining difference? Can you state it, and do your customers know
it? Do they understand it? Can they spell it out to people? Will they seek it? Will
they pay more for it? Will they defend it under attack?
And here’s another thought. People want to buy from someone. Give them a
“someone.” If you don’t have a “someone,” create a “someone.” People want to buy
from an individual or from a character. People want to buy from someone that they

44
can know. And you need to develop a story. If you don’t have a story, make up a
story. Find a story. People want to buy from “someone.”
Just a word, too, about the soft step and the hard step. Sometimes in helping a
customer make the hard step to a transaction, we can often help them take a soft step
by requesting more information or giving them more added value. And information
is a great, great source of added value.
Our company, Performance Coatings Inc.—makers of fine wood finishes—
makes a tiny CD-ROM called “Quick N’ Easy Guide to Ultimate Wood Care.” It’s
available free to professional contractors and Do-It-Yourselfers at paint counter and
pro-desks in stores across the U.S. and Canada. It takes the viewer through all
aspects of preparation and application of Penofin to all species of wood. Viewers
can click on English or Spanish versions and gain tremendous knowledge about
wood care. We can’t make these CD’s fast enough! Guess what brand they’ll buy
after getting this free gift! Naturally, the CD-ROM is featured on our award-
winning website too, www.penofin.com. Giving knowledge and information, plus a
great high quality wood finish leads to great customer retention over time!
How do we break out? How do we get out into the arena that provides us with
our competitive difference? And what’s the mix? Marketing basics are service,
quality and delivery. But if everybody is capable of providing those, then it is added
value that becomes the real difference in the competitive arena. And added value is
intelligence, information ideas and innovation.
Let’s talk for just one more minute about Quantum Value. Again, Quantum
Value is going to be important to understand because it’s leveraging an organization’s
hidden values to meet customer expectations in the New Era, using Knowledge and
Creativity in business plus gained Unique Life Experiences to attain Quantum
Value. It’s our ability to create tremendous value in the new era.
Quantum Value is the excitement of a new worldwide creation that truly leads
human change and thus revitalizes business. It causes individual change and
company change, and makes us leaders in the next quality movement globally.
And Quantum Value is the understanding of the New Era “Doubler Factor.” In
the knowledge era, it’s the intangible assets that are the real source of strength for the

45
firm to distinguish itself in the marketplace. Quantum is making a total human and/
or company for the New Age by awareness education of Quantum Value theories.
Quantum value is a philosophy of doing business in the 21st century that deliv-
ers much more added value. Quantum Value delivers huge customer perceived
value, and it’s through the understanding that working down into the tiniest
particles of an organization, which are its individuals, developing them, giving
them a new self-awareness of Knowledge and Creativity (doubled) and Unique Life
Experiences that they then are able to form groups that a able to deliver what we’re
going to call Quantum Customer Value to customers in the next era. We have to
go deeper inside our organizations to create self-awareness of Quantum Value in
order to be able to deliver it as Quantum Customer Value and become survivors in
the marketplace.

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 PART ELEVEN

A NOTE FROM THE FROG POND

I guess I’ve jaywalked through my career and I wouldn’t change any direction
I’ve traveled. “Filling your life’s knapsack with unique experiences” is something
I coach many individuals to accomplish. It polishes you in many ways and gives
one the needed background to face the tremendous array of skills and experience
needed to take organizations to success in today’s rapidly changing world.
I started my career in the publishing world, in advertising sales. This taught me
to not only convince an advertiser to take space in our magazines, but to be able to
sketch out the size and makeup of the ad as we talked together. Then, I could work
with our graphic arts department and provide an ad that the customer approved and
that brought sales that could be measured. I worked for special interest maga-
zines ... there is that concept “niche marketing” that I talk about so much. Graphic
design, sales techniques, solid customer service that continues over time, special
event planning and four-color printing are some of the gifts I received in this field
of endeavor. At the same time, I was serving as an expert color commentator for
ABC Television’s “Wide World of Sports” for some years and was able to spend time
around the world with great producers and directors.
I was taught by such wonderful announcers as the incredible Jim McKay, who
was constantly doing sports shows all over the world and who set a standard for all
of us in television. The interviews were live on-location and the remainder of the
show went to Manhattan for editing. I would join them in the studio at 52nd and
6th avenue (the Avenue of the Americas) for a week or so, and watch the edited
version. Then, we were on-air, live, describing the action into microphones. This is
called an audio-layover and presented many opportunities to work and visit the east
coast. Bi-coastal, I call it, and I’m thankful for that fulfillment. A great experience,
culminating in the Cannes Film Festival award for the “Best One Hour Sports Show

47
Segment in the World”. It gave me so much in the way of understanding how the
television medium works and afforded me the opportunity to work with so many
creative people.
Wanting to see the latest options, I went to work for the N.W. Ayer Advertising
Agency, the world’s oldest advertising firm and one of the top ten in account billing
in the world at that time. Working on national and international accounts gave me
more time in the area of client relations and creative work. Partnering with copy-
writers, creative teams and, again, art departments, really polished me with skills I
would be able to use throughout my career.
Then, I wanted to see the client side, firsthand. As head of Public Relations for
Kawasaki Corporation U.S.A., part of the huge Kawasaki Heavy Industries in Kobe,
Japan, I was able to work with media, research and development, racing teams and
new product introduction. When we introduced the new Kawasaki 901cc Z-l
motorcycle, a rental agreement with Daytona Speedway was signed for three days
and nights track use. We filmed our European and American racers during 24-hour
endurance tests. I invited many journalists to the event who watched as we set 55
world speed and endurance records in the three days, including the fastest one-lap
speed record ever set for a stock motorcycle! This did more for the company and it’s
dealers than anything I’ve ever seen. It also provided a chance to travel on business
to Tokyo and Kobe, Japan, as well as England, Italy, Greece, and Canada. More polish!
As a principal in one of San Francisco’s north bay accounting firms, I set up their
in-house consulting side and worked with organizations on all kinds of products
and services. This gave me an opportunity to work with very “left brain” individuals,
as well as attorneys and executives of all kinds. What an experience for a “right
brainer” kid like me!
The “Frog Pond Wisdom Circle Dialogues” came from a series of lectures and
live radio shows, one hour at noon, that I wrote and produced while working daily
as head of consulting in the accounting firm. This taught me preparation, timing
and delivery of needed business information, and I was able to keep the ratings and
interest high among listeners. I read literally hundreds of business books and news-
papers over the years to prepare these live shows, and interviewed dozens of guests
with a variety of backgrounds in all kinds of organizations.

48
 “Lead, follow, or get out of the way!” I learned that message early and I continue
to do things differently. “The playing field is always moving” is another phrase I use to
help people experience personal growth in their careers. Growing people is one of
the most important roles for leaders today. Studying the “SWOT” concept is also
important. Understanding “strengths, weaknesses, opportunities and threats” and
sharing them in positive, optimistic, creative meetings can lead to unparalleled
success in organizations. Again, the smallest particle, the individual, is the key to
organizational and stakeholder growth in these fast-forward times.
Heading my own consulting company, I was able to advise all kinds of organiza-
tions from start-ups to multi-nationals. Now, we are all being measured on a global
scale in all that we do. I was able to help a west coast mail order catalog company from
a garage start-up to a multi-million dollar player with warehouses in the northeast
and the south. Everything I learned growing companies came into play on this one!
Having spent some years volunteering on the back roads of northern California’s
“lost coast,” I undertook a corporate sabbatical and served as a volunteer firefighter,
Emergency Medical Technician and a volunteer Reserve Deputy Sheriff. What a
learning experience for me! Nightly call-outs taught me to take calculated risks,
something directly related to staying alive. But it taught me a tremendous level of
skill for running an international business. I learned first hand, about the uniquely
American spirit of volunteer ism ... something that my wife Barbara and I promote
highly in our company. Reaching out to help the sick, injured and needy is not only
rewarding to us, but con¬tributes to the “triple bottom line” that companies and
their employees must understand in the 21st century to be successful and survive as
“global citizens.”
One of my favorite techniques is “management by wandering around.” I didn’t
invent it, but it has been my style for some years. It’s really simple and it works!
Moving constantly among our employees, our vendors, our suppliers and our stake-
holders. I see things that can be improved and I’m able to move easily among our
employees, the smallest particles, creating a partnership for success. A great culture
internally is absolutely necessary!
My favorite concept is of “Louise,” my imaginary chicken. She is a beautiful hen
and she follows me as I wander about looking at improvements and changes in our
company. I love how chickens peer at objects and “cluck” with interest. I once

49
observed ball bearings on the floor of our factory and used my imaginary “Louise”
to follow the trail of these somewhat quantum objects. Soon, I found a forklift with
a disintegrating axle and was able to get it fixed and continue the day’s critical
production. I’ve seen so many things that most people miss in organizational structure
and always thank my mythical hen, “Louise.”
Many times, our people quote Albert Einstein when we are at our wits-end with
a particular problem. Someone jumps up and shouts “Einstein!.” What that means
is that we verbally recite his famous quote: “Insanity is doing the same thing over
and over again and expecting different results!” Then we jump outside the box and
fly the plane upside down and do it differently. It works!

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NOTES

51