TRANSFORMATIONAL LEADERSHIP Healthcare’s New Business Model

The Law of Disruption

While  People  Change  Incrementally,  Technology  Improves  

EXPONENTIALLY

Mobile, Social, Camera, Sensors, Cloud and Data

$36  Trillion  in  stock  market  value  is  up  for  

RE-IMAGINATION

1 | WORK ON THE BUSINESS The most successful transformational leaders I've known spend time each week working “On The Business.”

TRANSFORMATIONAL LEADERSHIP

THE BUSINESS JOURNEY THERE’S NO STRAIGHT LINE FROM “A” TO “B”

Leadership

Planning & Strategy Customer & Market Focus

Analytics People Focus

Process Knowledge Business Information

Goal

Business Process: Working IN your business

Business Capability: Working ON your business

Today’s Reality Tomorrow’s Opportunity

You can spend all day, all week, all year on the business in survival or maintenance mode

But growth happens when you work on this!

Business Process

Business Capability

THE SECRET | FOCUS ON THE BUSINESS MODEL Make fundamental adjustments that enhance your competitive advantages. New entrants often offer a “better mouse-trap” – superior benefits and lower costs.

A Business Model is simply a representation of how an organization makes money.

The Business Model has Become a Given Our Professional Lives Are Simply “to do” Lists

There are 7 core business model types from which every business model

is created.

BUSINESS MODELS | 7 CORE TYPES

WHO WHAT HOW is your

customer? do you offer

your customers? do you do this?

Markets

Customer Segments

Individual Customers

Products & Services

Solutions

Experiences

Create Value

Deliver Value

Capture Value

Value Proposition

What Is A Business Model? The Essence & Main Components

Who is your customer?

What is your value proposition?

How are you creating and delivering your offer?

Source: Marc Sniukas

Describe Your Business Model Describe Your Business by Answering These 3 Questions

Most of Our Strategies are “off” by 10 Degrees … so are most of our competitors

Closing the Gap Defines Success

2 | DIFFERENTIATE

FIVE TRAITS OF TRANSFORMATIONAL LEADERS

Differentiate yourself as a leader by combining 3 puzzle pieces:

Your Assets

Your Aspirations

The Market

Realities

Delivery Skills

Emotional Intelligence

Discovery Skills

1. Insight: Compelling vision of the future that attracts others

2. Expertise: Ability to show others how to get things done

3. Relationships: Capable people actually choose to follow you

TRANSFORMATIONAL LEADERSHIP

37% Only of Individuals Think their Organization is Innovative

WHERE IS THE INNOVATION?

Yet 79%

work environments.

would feel motivated

by innovative

WHAT MOST OF OUR STAFF AND CUSTOMERS THINK WE ARE TRYING TO BUILD

WHAT MOST OF OUR CUSTOMERS WANT

•  WE DO NOT LEAD an organization, department or group; and your people do not follow strategic plans, fancy goals or year-end reports | THEY FOLLOW A PERSON

•  Often, our understanding id diluted with operational plans, goal setting, revenue and sales forecasting, cash flow, HR, compliance and the company’s bottom line.

•  How You Influence Others is the Most Important Part of Leadership

You Are Messing with Peoples’ Lives!

Individuals are hard-wired to belong

To groups and communities That acknowledge their existence, accept them

And help them define their identity.

Boy  Scouts  or  Gangs,  It’s  all  about  

BELONGING

•  How does the plan build Awareness? •  How do we create Interest? •  What are the drivers of team Desire? •  How do we cause Adoption | Buy In?  

BUILDING AIDA | AFFECTING CHANGE

COGNITIVE STAGE | THINK

Awareness | The cognitive component deals with cognition, or knowledge; it is the power of knowing, perceiving or conceiving ideas about the product. It is dealing with the basic information that our team needs to know. Our team must to be exposed to the plan – and understand the WHY before we discuss HOW and WHAT.

AFFECTIVE STAGE | FEEL

Interest & Desire | The effective component deals with the affections/emotions. For example, feelings of likes or dislike towards the plan. It is at this stage that the team will emotionally connect and engage or they will disconnect and disengage.

BEHAVIOR STAGE | DO

Action | This is the stage when the team, after having the knowledge and developing the liking or disliking towards the plan (and emotional buy in), will ultimately lead to action and execution.

LESSONS LEARNED IN LEADERSHIP

Great Communicators Tell 3 Stories:"

1.  Tell a compelling story about yourself.. 2.  Tell a compelling story about the organization.. 3.  Stories of your people & how the work they do is an

essential part of the team.

3 | NETWORK & COLLABORATE A Leader must have a broader view that goes outside the healthcare business. We get that broader perspective out there in our networks. In those networks you find information to bring it back into the business.

7 BUSINESS GROWTH STRATEGIES FIVE TRAITS OF TRANSFORMATIONAL LEADERS

EMPLOYERS

SEARCH

PROVIDERS

SERVICE VENDORS

HEALTH PLANS

APP MAKERS

Customers

AROUND THE CONSUMER HEALTHCARE STAKEHOLDERS ARE ALIGNING

You are competing with every other type of

healthcare entity for “shelf space” with the consumer.

WHAT IS YOUR BRAND? …what do people say about you when you leave the room

MY DEVELOPMENT The 500 People That

Connect Me to Anyone in the World

Opportunity Development

The 50 People That Are Key to Professional Growth

Professional Development

The 5 People That Most Influence Who I Become

Personal Development

1. 2. 3. 4. 5.

4 | THINK VALUE Challenge traditional thinking in healthcare – focus on the customer, whose wants and needs change.

7 BUSINESS GROWTH STRATEGIES FIVE TRAITS OF TRANSFORMATIONAL LEADERS

Competitive Advantage | our ability to outperform our competitors: Valuable, Rare, Sustainable, Hard to Imitate.

THE HALO

VALUE CREATION FOR OUR CUSTOMERS

V = Value to consumer P = Price C = Costs of production

C

P – C = Margin

V – P = Halo

V – P = Halo

C

Competitive Advantage | our ability to outperform our competitors: Valuable, Rare, Sustainable, Hard to Imitate.

THE HALO

VALUE CREATION FOR OUR CUSTOMERS

V = Value to consumer P = Price C = Costs of production

P – C = Margin

Source: The New Multi-Screen World Study | Google, August 2013

CONSUMER VALUE IS OFTEN INFERRED IN CONTEXT OF TIME AND ACCESSIBILITY

5 | ENGAGE CONSUMERS Healthcare’s consumer is increasingly mobile and lives online. Consider a C2B Model – using customer data to engage and build loyalty. It will take more than a website to thrive in the New Health Economy.

7 BUSINESS GROWTH STRATEGIES FIVE TRAITS OF TRANSFORMATIONAL LEADERS

MULTI-CHANNEL LIFE MOST CONSUMERS HAVE A

Customers

Use Consumer Data To: •  Refine business

models •  Enhance consumer

experience •  Earn greater loyalty

LOOK FOR TREND Challenge traditional thinking in healthcare – focus on the customer, whose wants and needs change.

9 BUSINESS GROWTH STRATEGIES

The next “New Thing” happens because we see in our peripheral vision emerging opportunities…

You Can Almost Feel the Change

THE NEXT NEW THING | Begins with an Idea

GET THE IDEA OUT OF YOUR HEAD!…and into a Picture!

1. P

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5. KEY INGREDIENTS

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL

Wha

t is

it? W

ho h

as o

ne lik

e it?

W

hy n

ow?

Why

me?

2. CUSTOMER

4. INTIMACY

3. DISTR

IBUTIO

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Company Name Version Number Date

THE IDEA FRAME | WHAT IF

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5. KEY INGREDIENTS

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

4. INTIMACY

3. DISTR

IBUTIO

N

THE PRODUCT QUESTIONS •  What is it? •  Who has one like it? •  Why now? •  Why me?

Company Name Version Number Date

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5. KEY INGREDIENTS

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

What is the pain? Who are early adopters?

What brands do they buy today? What causes them to choose us?

4. INTIMACY

3. DISTR

IBUTIO

N

THE CUSTOMER QUESTIONS •  Who are early adopters? •  What is their pain? •  How do they solve it today? •  What brands do they buy? •  What causes them to choose us?

Company Name Version Number Date

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5. KEY INGREDIENTS

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

What is the pain? Who are early adopters?

What brands do they buy today? What causes them to choose us?

4. INTIMACY

3. DISTR

IBUTIO

N

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

THE DISTRIBUTION QUESTIONS •  How do customers hear of us? •  How do they buy? •  Do we make it easy to buy? •  At what price will they buy?

Company Name Version Number Date

1. P

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5. KEY INGREDIENTS

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

What is the pain? Who are early adopters?

What brands do they buy today? What causes them to choose us?

4. INTIMACY

3. DISTR

IBUTIO

N

Why do early adopters like us? How do we engage them?

Will they become our Ambassadors?

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

THE INTIMACY QUESTIONS •  Why do early adopters like us? •  How are we engaging them? •  Will they become ambassadors?

Company Name Version Number Date

1. P

RO

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5. KEY INGREDIENTS What are the core elements of the product or service that are unique to our team? What are the critical ingredients in my design that I must own?

6. PARTNERS

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

What is the pain?"Who are early adopters?

What brands do they buy today? What causes them to choose us?

4. INTIMACY

3. DISTR

IBUTIO

N

What causes customers to like us? How do we engage them?

Will they become our Ambassadors?

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

KEY INGREDIENTS •  What are the core elements of

the product or service that are unique to our team?

•  What are the critical ingredients in my design that I must own?

Company Name Version Number Date

1. P

RO

DU

CT

5. KEY INGREDIENTS What are the core elements of the product or service that are unique to our team? What are the critical ingredients in my design that I must own?

6. PARTNERS Who are the key partners who will provide certain outsource and supply chain services? What partner brands help us look larger than life?

7. ESSENTIAL RECIPE

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

4. INTIMACY

3. DISTR

IBUTIO

N

What is the pain?"Who are early adopters?

What brands do they buy today? What causes them to choose us?

What causes customers to like us? How do we engage them?

Will they become our Ambassadors?

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

PARTNERS •  Who are the key partners who

will provide outsource and supply chain services?

•  What are the brands that will help us look larger than life?

Company Name Version Number Date

1. P

RO

DU

CT

5. KEY INGREDIENTS What are the core elements of the product or service that are unique to our team? What are the critical ingredients in my design that I must own?

6. PARTNERS Who are the key partners who will provide certain outsource and supply chain services? What partner brands help us look larger than life?

7. ESSENTIAL RECIPE What is the perfect mix of the core elements I must do? What partnership | outsource activities that meet the customers needs without being overly complicated?

8. COST MODEL 9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

4. INTIMACY

3. DISTR

IBUTIO

N

What is the pain?"Who are early adopters?

What brands do they buy today? What causes them to choose us?

What causes customers to like us? How do we engage them?

Will they become our Ambassadors?

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

ESSENTIAL RECIPE •  What is the perfect mix of the

core elements I must do? •  What partnership activities that

meet the the customers needs without being overly complicated?

Company Name Version Number Date

1. P

RO

DU

CT

5. KEY INGREDIENTS What are the core elements of the product or service that are unique to our team? What are the critical ingredients in my design that I must own?

6. PARTNERS Who are the key partners who will provide certain outsource and supply chain services? What partner brands help us look larger than life?

7. ESSENTIAL RECIPE What is the perfect mix of the core elements I must do? What partnership | outsource activities that meet the customers needs without being overly complicated?

8. COST MODEL Do items (5-7) create an affordable cost structure? Can I create a competitive market margin for the product or service at the price I can charge? What is my best guess of the margin?

9. REVENUE MODEL W

hat i

s it?

Who

has

one

like

it?

Why

now

? W

hy m

e?

2. CUSTOMER

4. INTIMACY

3. DISTR

IBUTIO

N

What is the pain?"Who are early adopters?

What brands do they buy today? What causes them to choose us?

What causes customers to like us? How do we engage them?

Will they become our Ambassadors?

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

MY COST MODEL •  Do items 5-7 create an affordable

cost structure? •  Can I create a competitive margin? •  What is my best guess of the

margin?

Company Name Version Number Date

1. P

RO

DU

CT

5. KEY INGREDIENTS What are the core elements of the product or service that are unique to our team? What are the critical ingredients in my design that I must own?

6. PARTNERS Who are the key partners who will provide certain outsource and supply chain services? What partner brands help us look larger than life?

7. ESSENTIAL RECIPE What is the perfect mix of the core elements I must do and the partnership | outsource activities that meet the customers needs without being overly complicated nor costly?

8. COST MODEL 9. REVENUE MODEL What can I charge for the product or service? Based upon my cost model, is the business sustainable? Does it attract investors? Can it scale and grow? How do I know?

Wha

t is

it? W

ho h

as o

ne lik

e it?

W

hy n

ow?

Why

me?

2. CUSTOMER

4. INTIMACY

3. DISTR

IBUTIO

N

What is the pain?"Who are early adopters?

What brands do they buy today? What causes them to choose us?

What causes customers to like us? How do we engage them?

Will they become our Ambassadors?

How do custom

ers hear about us? How

do they buy? Is it easy to buy? At w

hat price?

Do items (5-7) create an affordable cost structure? Can I create a competitive market margin for the product or service at the price I can charge? What is my best guess of the margin?

MY REVENUE MODEL •  What can I charge for the product

or service? •  Based upon my cost model, is the

business sustainable? •  Does it attract investors? •  Can it scale and grow? •  How do I know?

Company Name Version Number Date

LEADERSHIP DECISION MAKING REQUIRES AN ENTREPRENEURIAL MINDSET

F Frame the Opportunity or Issue

O Organize the Information you Have

C Clarify What You Know and Do Not Know

U Understand Your Options. Develop a “Plan A” and a “Plan B” Validation of Options: •  ROI (Return on Investment) •  Value •  Projected Growth in Revenue, Margin, Customer Volume

S Select Your Best Option. Execute it Well. Does your solution Address the Client’s or Organization’s “Pain”? Does it match the Company’s Strategic Objective (s)? Is it a realistic? Is it affordable? Is it an executable solution?

PDCA  In struct io na l  C y cle

PLAN

A CT

DO

CHECK

• Data  Disagg regation

• Calendar  Development• Direct  Instructional

Focus

• Tutoria ls

• Enrichment

• Assessment

• Maintenance

• Monitoring

FOCUS MODEL | DECISION MAKING

We Become

ü  What we Eat | Both body and brain health ü  What we Read | Reading changes brain structure & performance ü  The 5 People | With whom we spend most of our time Knowing this, I use the following tool to map out my on personal development plan – to ensure I have an active role in the person I am becoming…

TO-BE SITUATION �  Performance �  Skills �  Perceptions

A Transformation Map is a simple but powerful framework against which to chart our progress

AS-IS SITUATION �  Performance �  Skills �  Perceptions

TO

Performance

Q3 Q4 Q2 Q1

FROM

Person

al  Life

 My  Well  Being  

My  Brand  |  Iden5ty  Network  |People  Skill  |  Knowledge  

Expe

riences  

My Goal: 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

CONTACT INFORMATION

Dr. Michael R. Burcham c.  615.400.7662 e. michael@michaelburcham.com w. www.michaelburcham.com t.  www.twitter.com/michaelrburcham l.  www.linkedin.com/in/michaelburcham

Handouts Available: www.slideshare.net/michaelburcham