Part 1.4 Tom Peters’ EXCELLENCE. ALWAYS. NEW MASTER/21 August 2008

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and [and

insure that it is not ainsure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

and and “Verdana”“Verdana”

Part 1.4Part 1.4Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

NEW MASTER/21 August 2008NEW MASTER/21 August 2008

Slides at …Slides at …

tompeters.comtompeters.com

Ten PartsTen Parts

P1.1, P1.2, P1.3, P1.1, P1.2, P1.3, P1.4P1.4//GenericGenericP2/LeadershipP2/LeadershipP3/TalentP3/TalentP4/“Value-added Ladder”P4/“Value-added Ladder”P5/“New” Markets P5/“New” Markets P6/“The Equations”P6/“The Equations”P7.1/ImplementationP7.1/ImplementationP7.2/ActionP7.2/ActionP8/13 “Guru Gaffes”P8/13 “Guru Gaffes”P9/Health“care”P9/Health“care”P10/“The Lists”P10/“The Lists”

Part 1.4Part 1.4

#25#25

EXCELLENCE. EXCELLENCE.

SOUL.SOUL.DESIGN.DESIGN.

All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all products of “At Sony we assume that all products of our competitors have basically the same our competitors have basically the same

technology, price, performance and technology, price, performance and

features.features. Design is the only Design is the only thing that thing that

differentiates one differentiates one product from another product from another in the marketplacein the marketplace.”.”

—Norio—Norio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

““We don’t have a good language to talk We don’t have a good language to talk about this kind of thing. In most people’s about this kind of thing. In most people’s

vocabularies, design means veneer. … vocabularies, design means veneer. … But to me, nothing could be further from But to me, nothing could be further from

the meaning of design.the meaning of design. Design Design is the is the fundamentalfundamental

soulsoul of a man- of a man-made creation.”made creation.” ——

Steve JobsSteve Jobs

““With its carefully conceived mix of colors and textures, With its carefully conceived mix of colors and textures,

aromas and music,aromas and music, StarbucksStarbucks is more is more indicative of our era than the iMac. It is to the Age of indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass ProductionConvenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the quality of enhance the quality of everything the customers see, everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writes writes

CEO Howard Schultz.”CEO Howard Schultz.” -—Virginia Postrel, -—Virginia Postrel, The Substance of Style: How the Rise of AestheticThe Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and ConsciousnessValue Is Remaking Commerce, Culture and Consciousness

““Having spent a century or more focused on other goalsHaving spent a century or more focused on other goals—solving manufacturing problems, lowering costs, —solving manufacturing problems, lowering costs,

making goods and services widely available, increasing making goods and services widely available, increasing convenience, saving energy—we are increasingly convenience, saving energy—we are increasingly

engaged in making our world special. More people in engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and from the way their persons, places and things look and

feel.feel. Whenever we have Whenever we have the chance, we’re the chance, we’re addinaddingg sensor sensoryy, ,

emotional aemotional appppeal to eal to ordinarordinaryy function function.”.” — Virginia — Virginia

Postrel, Postrel, The Substance of Style: How the Rise of Aesthetic The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and ConsciousnessValue Is Remaking Commerce, Culture, and Consciousness

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

and and hate!*hate!**Not “like” and “dislike”*Not “like” and “dislike”

CCDDOO**Chief DesignDesign Officer

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

““Steve Jobs Steve Jobs ggives almost as much ives almost as much thouthougght to the cardboard boxes ht to the cardboard boxes

his his ggadadggets come in as the ets come in as the pproducts themselvesroducts themselves.. This is not This is not

for reasons of taste or elegance—for reasons of taste or elegance—though that’s part of it. To Jobs, though that’s part of it. To Jobs, the act of pulling a product from the act of pulling a product from

its box is an important part of the its box is an important part of the user experience, and like user experience, and like

everything else he does, it’s very everything else he does, it’s very

carefully thought out.”carefully thought out.” ——Leander Kahney, Leander Kahney,

Inside Steve’s BrainInside Steve’s Brain

#25.1#25.1

Better By DesignBetter By Design

The The Design49Design49

Tom Tom Peters/Auckland/30March2005Peters/Auckland/30March2005

Better By Design: Tom’s Design49Better By Design: Tom’s Design49

1. There are only 2 rules.1. There are only 2 rules.2. Rule #1: 2. Rule #1: You can’t beat Wal*Mart on price or China on cost.You can’t beat Wal*Mart on price or China on cost.3. Rule #2: See Rule #1.3. Rule #2: See Rule #1.4. Econ Survival = Innovate and Sprint Up the Value-added4. Econ Survival = Innovate and Sprint Up the Value-addedChain … Chain … OR DIEOR DIE!!5. 5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE “SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.“SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.6. Design as Soul-Core Competence #1 is a 6. Design as Soul-Core Competence #1 is a “cultural imperative,”“cultural imperative,” not not a “programmatic” or “process” ora “programmatic” or “process” or“throw $$$ at it” issue!“throw $$$ at it” issue!7. CDEs 7. CDEs (Culturally Design-driven Enterprises)(Culturally Design-driven Enterprises) use Design- use Design-Experiences-Dream Merchantry-Lovemarks as the LeadExperiences-Dream Merchantry-Lovemarks as the LeadDog(s) in the OlympianInnovation-“Strategy”-ValueDog(s) in the OlympianInnovation-“Strategy”-ValueProposition Struggle.Proposition Struggle. 8. “Dream Merchant” makes as much sense for IBM or GE or UPS as 8. “Dream Merchant” makes as much sense for IBM or GE or UPS as for Starbucks!for Starbucks!


9. At CDEs, Design is the Heart of the “Emotional Branding” 9. At CDEs, Design is the Heart of the “Emotional Branding” Process.Process.10. 10. CDEs wholeheartedly embrace ideas such as “mystery,” CDEs wholeheartedly embrace ideas such as “mystery,” “surprise,” sensuality.”“surprise,” sensuality.”11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great”11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great”and “Gasp-worthy” and “Passion” and “Love”! and “Gasp-worthy” and “Passion” and “Love”! ((Axiom: Extreme Axiom: Extreme language breeds extreme products and serviceslanguage breeds extreme products and services.).)12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise = 12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise = Crappy enterprise.)Crappy enterprise.)13. CDEs love “strange” and “weird.”13. CDEs love “strange” and “weird.”14. CDEs scour the earth for “strange” and “weird” people. (CDEs 14. CDEs scour the earth for “strange” and “weird” people. (CDEs know: know: FREAKS RULEFREAKS RULE!)!)15. CDEs are “extremists.” (KR: “Avoid moderation.”)15. CDEs are “extremists.” (KR: “Avoid moderation.”)16. CDEs know that … 16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH!EXCELLENCE IS NOT GOOD ENOUGH!(We must use (We must use non-linearnon-linear measures!) measures!)


17. 17. CDEs seek Discontinuities.CDEs seek Discontinuities. (JG: “We don’t want to be the best of (JG: “We don’t want to be the best of the best, we want to be the only ones who do what we do.”) the best, we want to be the only ones who do what we do.”) 18. 18. CDEs are “respectful” of their customers, but not slaves to their CDEs are “respectful” of their customers, but not slaves to their customers! CDEs … LEAD THEIR CUSTOMERS!customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: “Listening (Axioms: “Listening to customers” is over-rated! Focus groups suck!)to customers” is over-rated! Focus groups suck!)19. But: “Lead” customers are an entirely different matter!19. But: “Lead” customers are an entirely different matter!20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo 20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo Brand”!)Brand”!)21. CDEs abide by Phil Daniels’ Credo: 21. CDEs abide by Phil Daniels’ Credo: “REWARD EXCELLENT “REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES.”FAILURES. PUNISH MEDIOCRE SUCCESSES.”22. At CDEs the Design Director is at least an Exec Vice President, a 22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she has an office within 10 meters of the CEO (unless she isis the CEO). the CEO). 23. Design Directors at large companies 23. Design Directors at large companies notnot worth worth $5,000,000$5,000,000 per year aren’t worth hiring! per year aren’t worth hiring! (DD$21M.)(DD$21M.)


24. Great Designers are 24. Great Designers are “10,000X”“10,000X” better than “good designers.” better than “good designers.”25. At CDEs CFOs are 25. At CDEs CFOs are nevernever former CFOs! The CEO former CFOs! The CEO alwaysalways doubles doubles as the Chief Innovation Officer.as the Chief Innovation Officer.26. 26. CDEs are “Top-line Obsessed.”CDEs are “Top-line Obsessed.”27. CDE execs know there is a chasm between “excellent design” 27. CDE execs know there is a chasm between “excellent design” and “game-changer design.”and “game-changer design.”28. Gasp-worthy design is a moving target!28. Gasp-worthy design is a moving target!29. No Broadway shows last forever. So too, great designers!29. No Broadway shows last forever. So too, great designers!(Hire them! Pay them! Cherish them! Nurture them! (Hire them! Pay them! Cherish them! Nurture them! Fire them!Fire them!))30. Great design wrestles incessantly with the issue of “cool” 30. Great design wrestles incessantly with the issue of “cool” and/versus “usability.”! and/versus “usability.”! 31. 31. Designers “get” the stunning principles of Wabi Sabi.Designers “get” the stunning principles of Wabi Sabi. (Great (Great designers side with Chris Alexander against the A.I.A.)designers side with Chris Alexander against the A.I.A.)32. CDEs “get” the “feminine side” of life.32. CDEs “get” the “feminine side” of life.


33. CDEs Know I: 33. CDEs Know I: WOMEN BUY EVERYTHING!WOMEN BUY EVERYTHING!34. CDEs Know II: 34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. FOR WOMEN. 35. CDEs understand that “We’re getting’ older”—and vigorously 35. CDEs understand that “We’re getting’ older”—and vigorously embrace the Boomer-Geezer market.embrace the Boomer-Geezer market.36. 36. CDEs understand: Boomers-Geezers have “ALL THE MONEY” … CDEs understand: Boomers-Geezers have “ALL THE MONEY” … are by and large healthy … and have 20 or so years left!are by and large healthy … and have 20 or so years left!37. CDEs wonder: Can 28-year-olds design “experiences” for 68-37. CDEs wonder: Can 28-year-olds design “experiences” for 68-year-olds?year-olds?38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-Greenie-38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-Greenie-Wellness.Wellness.39. “Design-mindfulness” is as apparent in the CDE’s facilities as in 39. “Design-mindfulness” is as apparent in the CDE’s facilities as in its products-services!its products-services!


40. 40. “Design mindfulness” is as apparent in HR and “Design mindfulness” is as apparent in HR and Engineering and Logistics and IS/IT as in NPD.Engineering and Logistics and IS/IT as in NPD.41. 41. CDEs will settle for nothing less then “beautiful,” “gasp-CDEs will settle for nothing less then “beautiful,” “gasp-worthy” Business Processes/Infrastructure!worthy” Business Processes/Infrastructure!42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!) 42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!) (450/8.)(450/8.)43. “Design-mindfulness”/“aesthetic sensibility” is a requisite 43. “Design-mindfulness”/“aesthetic sensibility” is a requisite for Every Hire—including waiters and waitresses in Fast Food for Every Hire—including waiters and waitresses in Fast Food outlets and Housekeepers in hotels.outlets and Housekeepers in hotels. 44. Gasp-worthy Design is as essential to “service 44. Gasp-worthy Design is as essential to “service companies” as to “manufacturers.”companies” as to “manufacturers.”45. Gasp-worthy design can transform any “commodity,” 45. Gasp-worthy design can transform any “commodity,” including ag!including ag!


46. 46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER.THE FIRST ORDER.47. “Small” is no disadvantage in an Age of Creativity!47. “Small” is no disadvantage in an Age of Creativity!48.48. There is no such thing as a “National Design There is no such thing as a “National Design Advantage” unless the current school system is Destroyed Advantage” unless the current school system is Destroyed & Re-imagined& Re-imagined—to emphasize creativity and risk-taking and —to emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness … the acceptance of failure. (Design Mindfulness … the suppression thereof … typically begins at Age suppression thereof … typically begins at Age 44.).)

49.49. How sweet it is!How sweet it is! (If your head is screwed on right.)(If your head is screwed on right.)

#26#26

Up, Up, Up,

Up

the Value-added Ladder.

Auckland/pmAuckland/pmtaipei/vptaipei/vp

singapore/pmsingapore/pmbangkok/dpmbangkok/dpm

flandersflandersamsterdam/MPamsterdam/MPss

barcelona/mbarcelona/maa

Kuala Lumpur/CMKuala Lumpur/CMlisbon/mlisbon/maa

dublin/pmdublin/pmbuenos airesbuenos aires

são paulosão pauloWarsaw/MPWarsaw/MPss

london/mplondon/mpss

milanmilanSEOUL/MSEOUL/Maa

mexico d.f./mmexico d.f./mistanbul/dpmistanbul/dpm

dubai/rfmdubai/rfmoman/rfmoman/rfm

usausastockholm/mpstockholm/mpss

shanghaishanghaimauritius/pmmauritius/pmjohannesburgjohannesburgbucharest/CMbucharest/CM

EXCELLENCE.EXCELLENCE.

VALUE ADDED. VALUE ADDED.UP THE LADDER.UP THE LADDER.

NoT Optional.NoT Optional.

The Value-added Ladder/ The Value-added Ladder/ “BEDROCK” “BEDROCK”

Raw Materials*Raw Materials*

**Farmers and Miners (“Degree”: Weightlifting)Farmers and Miners (“Degree”: Weightlifting)

The Value-added Ladder/ The Value-added Ladder/ THINGSTHINGS

Goods*Goods* Raw MaterialsRaw Materials

**Engineers and Factory Workers (Degree: Engineering)Engineers and Factory Workers (Degree: Engineering)

The Value-added Ladder/TRANSACTIONSTRANSACTIONS

Services*Services*GoodsGoods

Raw Materials Raw Materials

**Clerks (Degree: Process Engineering)Clerks (Degree: Process Engineering)

#26.1#26.1

Up, Up, Up,

Up



VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.

LEAVE ITLEAVE IT

TO TO BEAVER.BEAVER.

Trapper:

<$20<$20 per beaver pelt.

Source: WSJ

wdcp/“Wildlife wdcp/“Wildlife Damage-control Damage-control

Professional”:Professional”: $$150150 to “remove” “problem to “remove” “problem

beaver”; beaver”; $$750750-$-$1,0001,000 for flood-control piping … for flood-control piping … so that beavers can stay.so that beavers can stay.

Source: Source: WSJWSJ

Trapper = Trapper = RedneckRedneck

WDCP = WDCP = PSF/ PSF/ Professional Professional

Services ProviderServices Provider

7X7X toto 40X40Xfor for

“Solution”“Solution” [rather than “service transaction”][rather than “service transaction”]


VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.

““M” = M” = $0$0

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of choice.”/BW

(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )

IBM Global ServicesIBM Global Services* (*Integrated Systems

Services Corp.): $$55B55B

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM

would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

““By making the Global Delivery Model both legitimate and mainstream, By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents of strategy. We have become the leaders, and incumbents [IBM, Accenture][IBM, Accenture]

are followers, forever playing catch-up. … However, creating a new are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The business innovation is not enough for rules to be changed. The

innovation must impact clients, competitors, investors, and society. We innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are have seen all this in spades. Clients have embraced the model and are

demanding it in even greater measure. The acuteness of their demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking made the choice not a choice. Competitors have been dragged kicking

and screaming to replicate what we do. They face trauma and disruption, and screaming to replicate what we do. They face trauma and disruption,

but the game has changed forever.but the game has changed forever. Investors have Investors have ggrasraspped that this is not a ed that this is not a ppassinassingg

fancfancyy, but a , but a ppotential otential restructurinrestructuringg of the wa of the wayy the world the world

oopperates and how value will be erates and how value will be created in the futurecreated in the future.”.” —Narayana Murthy,

chairman’s letter, Infosys Annual Report

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL:

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

Energy Game.”:Energy Game.”: “IPM [Integrated “IPM [Integrated Project Management] strays from Project Management] strays from [Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

A January 2008 BusinessWeek cover story informed us that Schlumberger may well take over the world: “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.” In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. (The pictures in the article from Siberia alone are worth the cover price.) At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” The Schlumberger version is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to production”—that is, as BusinessWeek put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.)

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Aims to Be the Traffic

Manager for Corporate Manager for Corporate AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

MasterCard MasterCard AdvisorsAdvisors

“ ‘“ ‘Architecture’ is Architecture’ is becoming a becoming a

commodity. Winners commodity. Winners will be will be ‘Turnkey ‘Turnkey

Facilities Facilities Management’ Management’ providers.”providers.”

SMPS ExecSMPS Exec




SMPS ExecSMPS Exec

““We want to be We want to be the air traffic the air traffic controllers of controllers of

electrons.”electrons.”Bob Nardelli, Bob Nardelli, GE Power SystemsGE Power Systems




SMPS ExecSMPS Exec

California Closets:California Closets: “a “a whole-life upgrade, not whole-life upgrade, not just a tidy bedroom.”just a tidy bedroom.” —WSJ/0329.07, —WSJ/0329.07, “Why the Container-“Why the Container-

Store Guy Wants to Be Your Therapist”Store Guy Wants to Be Your Therapist”

IBMIBMHPHP

SchlumbergerSchlumbergerGE EnergyGE Energy

GE InfrastructureGE InfrastructureUPSUPS

MasterCardMasterCardetc.etc.etc.etc.etc.etc.etc.etc.

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by Best Buy.

IV. Flagship of Best BuyFlagship of Best Buy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle Blohm, The —Jan Gunnarsson & Olle Blohm, The

Welcoming LeaderWelcoming Leader

““Customer Satisfaction” to “Customer Customer Satisfaction” to “Customer

Success”:Success”: “We’re getting better at “We’re getting better at [Six [Six Sigma]Sigma] every day. But we really need every day. But we really need

to think about the customer’s to think about the customer’s

profitability: profitability: Are customers’ Are customers’ bottom lines really bottom lines really

benefiting from benefiting from what we provide what we provide

them?” them?” —Bob Nardelli, then chief of —Bob Nardelli, then chief of

GE Power SystemsGE Power Systems

““He had done nothing to sell me on his He had done nothing to sell me on his business, yet he had given me the most business, yet he had given me the most

powerful sales pitch of my life.powerful sales pitch of my life. Because Because his his sole sole concern had concern had been been mymy welfare and welfare and

the success of the success of mymy business.”business.”

—Jim Penman, on learning how to sell (—Jim Penman, on learning how to sell (What WillWhat Will They Franchise Next? The Story of Jim’s Group They Franchise Next? The Story of Jim’s Group))

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutions

ServicesServicesGoodsGoods


““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success through Customer Success through ImImpplementedlemented

Gamechanging Solutions*Gamechanging Solutions*ServicesServicesGoodsGoods


**Subject-matter Professionals andSubject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organization Effectiveness Experts (Degree: MBA,

Organizational Psychology)Organizational Psychology)




SMPS ExecSMPS Exec

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, is : “Our ‘it’ works, is delivered on time” (“Close”)delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our ‘it’ “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)can add value—a ‘useful it’ ” (“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and deliver our ‘system’ can change you and deliver

‘business advantage‘business advantage’’ ” (“Culture- ” (“Culture-Strategic change”)Strategic change”)

Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

#26.1.1#26.1.1

Up,Up, Up,Up, Up, Up,

UpUp



SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.PSF. (PSF++)PSF. (PSF++)

“Organizations will Organizations will still be critically still be critically important in the important in the

world, but as world, but as ‘organizers,’ not ‘organizers,’ not

‘employers’!”‘employers’!” — Charles — Charles

HandyHandy

“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be

afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …

yyou’ve ou’ve become become

irrelevant irrelevant toto y your our

customerscustomers.”.”

—John Battelle/Point/Advertising Age/07.05

“Deutsche Bank Moves Half of Its Back-office Jobs to India”/

headline/FT/0327 (500 (500 of 900 of 900

ResearchResearch))

Every job done Every job done in W.C.W. in W.C.W. [White Collar World][White Collar World]

is also done is also done “outside” …“outside” …for profit!for profit!

Chicago:

HRMACHRMAC

Sarah: “ Mom, what do you do?”

Mom: “I’m ‘overhead.’‘overhead.’””

““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”

oror … …

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Answer:

PSFPSF

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

Series/Reinventing WorkSeries/Reinventing Work

The ProThe Projject 50ect 50:: Fifty Ways To Transform Fifty Ways To Transform Every “Task” Into A Project That MattersEvery “Task” Into A Project That Matters

The Professional Service Firm 50The Professional Service Firm 50:: Fifty Fifty Ways To Transform Your “Department” Ways To Transform Your “Department” Into A Professional Service Firm Whose Into A Professional Service Firm Whose Trademarks Are Passion And InnovationTrademarks Are Passion And Innovation

The Brand You 50The Brand You 50:: Fifty Ways To Fifty Ways To Transform Yourself From An “Employee” Transform Yourself From An “Employee” Into A Brand That Shouts Distinction, Into A Brand That Shouts Distinction, Commitment And PassionCommitment And Passion

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

#26.1.2#26.1.2

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

Pointed Pointed Point of Point of View!View!

R.POV8R.POV8**Remarkable Point Of View/8 Words or less: “If *Remarkable Point Of View/8 Words or less: “If you can’t state your position in eight words or you can’t state your position in eight words or

less you don’t have a position.”less you don’t have a position.”——SGSG

Richard Sennett: Richard Sennett: “Craftsmanship,” “Craftsmanship,” “a sustaining life “a sustaining life

narrative”narrative”Source: Stefan Stern on Management, FT, 0710.07

The PSF35: The Client Experience11. Always team with client: “full partners in 11. Always team with client: “full partners in achieving memorable results” achieving memorable results” (Wanted: “Chimeras(Wanted: “Chimeras of Moonstruck Minds”!) of Moonstruck Minds”!)12. We will seek assistance Anywhere to assemble the Best-in-12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project Planet Team for the Project13. Client Team Members routinely declare that working with us13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” was “the Peak Experience of my Career”14. The job’s not done until implementation is14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) “100.00% complete” (Those who don’t “get it” must go)

15.15. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL THE CLIENT HAS EXPERIENCED “CULTURE THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” CHANGE”16.16. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT TAKEN PLACE-ROOT (“Teach a man to fish …”)(“Teach a man to fish …”)

17.17. The Final Exam: The Final Exam: DID WE MAKE A DRAMATIC,DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? LASTING, GAME-CHANGING DIFFERENCE?

“The business of selling is not just about matching viable solutions to the customers that require

them. It’s eIt’s eqqualluallyy about mana about managginingg the chanthe changge e pprocess the customer rocess the customer

will need to will need to ggo through to o through to imimpplement the solution and lement the solution and

achieve the value achieve the value ppromised byromised by the solutionthe solution.”*

(*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

Ideal “finance staffer”:Ideal “finance staffer”: Full-scale Full-scale “business partner” “business partner” [CFO?] to the/each [CFO?] to the/each

department she department she serves.serves.

Ideal “finance staffer”: Ideal “finance staffer”:

**Full-scale “business partner”**Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves.she serves.**Not cop—obsessed instead with**Not cop—obsessed instead with value-addedvalue-added**Integration first, “stovepipe” **Integration first, “stovepipe” secondarysecondary**MBWA/bigtime**MBWA/bigtime**Networker to the rest of Finance**Networker to the rest of Finance

The PSF35: The People & The Leadership

18. 18. TALENT FANATICSTALENT FANATICS (“Best-Coolest place to work”) (PERIOD) (“Best-Coolest place to work”) (PERIOD)19. 19. EYE FOR THE PECULIAREYE FOR THE PECULIAR (Hiring: Go beyond “same old, (Hiring: Go beyond “same old, same old”) same old”) 20. Early Opportunities (vs. “Wait your turn”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as21. Up or Out (Based on “Legacy”/Mentoring as much as “ “Billings”/“Rainmaking”)Billings”/“Rainmaking”)22. Slide the Old Aside/Make Room for Youth (Find oldsters22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?)new roles?)23. 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” DAY #“R” [R = Retirement][R = Retirement]24. Office/Practice Leaders Evaluated Primarily on 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building SkillsMentoring-Team Building Skills25. 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)26. Team Leadership Skills Valued Early26. Team Leadership Skills Valued Early27. Partner with B.I.W. [Best In World] Outsiders as Needed27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Viewsand to Infuse Different Views

The PSF35: The Firm & The Brand

28. 28. EAT-SLEEP-BREATHE-OOZE INTEGRITYEAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life (“My life is my message”—Gandhi)is my message”—Gandhi)

29. Excellence+ in 29. Excellence+ in EXECUTIONEXECUTION … 100.00% of the Time… 100.00% of the Time30. “Drop everything”/“Swarm” to Support a Harried-On30. “Drop everything”/“Swarm” to Support a Harried-On The Verge TeamThe Verge Team

31. 31. SPEND ON R&D LIKE A TECH FIRM.SPEND ON R&D LIKE A TECH FIRM.32. 32. A PROPRIETARY METHODOLOGYA PROPRIETARY METHODOLOGY (FBR, McKinsey, (FBR, McKinsey, Chiat Day, IDEO, old EDS)Chiat Day, IDEO, old EDS)

33. 33. BRAND MANIACSBRAND MANIACS (Organize Around a Point of View Worth(Organize Around a Point of View Worth BROADCASTING)BROADCASTING)

3434. . PASSION! ENTHUSIASM!PASSION! ENTHUSIASM!

35.35. EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

(1) Translate ALL departmental(1) Translate ALL departmental activities into activities into discretediscrete W.W.P.F. “Products.” W.W.P.F. “Products.”(2) (2) 100% go on the Web.100% go on the Web.

(3)(3) Non-awesome areNon-awesome are outsourced outsourced (75%??). (75%??).

(4)(4) Remaining Remaining “Centers of “Centers of Excellence” are retained & Excellence” are retained & leveraged to the hilt! leveraged to the hilt!

BMW’s BMW’s Designworks/USA: Designworks/USA:

>50%>50% from from

outside workoutside work

Static/Imitative

Integrity.Integrity.Quality.Quality.

Continuous Improvement.Continuous Improvement.Superior Service Superior Service (Exceeds Expectations.)(Exceeds Expectations.)

Completely Satisfactory Transaction.Completely Satisfactory Transaction.Smooth Evolution.Smooth Evolution.

Market Share.Market Share.

Dynamic/Different

Dramatic Difference!Dramatic Difference!Disruptive!Disruptive!

Insanely Great! Insanely Great! (Quality++++)(Quality++++)

Life-(Industry-)changing Experience!Life-(Industry-)changing Experience!Game-changing!Game-changing!

WOW!WOW!Surprise!Surprise!Delight!Delight!

Breathtaking!Breathtaking!Punctuated Equilibrium!Punctuated Equilibrium!

Market Creation!Market Creation!

EXCELLENCEEXCELLENCE = =

Flawless Flawless EXECUTIONEXECUTION + Continuous + Continuous IMPROVEMENTIMPROVEMENT

+ Brilliantly Trained + Brilliantly Trained PEOPLEPEOPLE

+Gamechanging Gamechanging QUESTSQUESTS + +

WEIRD WEIRD Rosters +Rosters + GASPWORTHYGASPWORTHY Results Results

EXCELLENCEEXCELLENCE = =

Flawless Flawless EXECUTIONEXECUTION + Continuous + Continuous IMPROVEMENTIMPROVEMENT

+ Brilliantly Trained + Brilliantly Trained PEOPLEPEOPLE

+Gamechanging Gamechanging QUESTSQUESTS + +

WEIRD WEIRD Rosters +Rosters + GASPWORTHYGASPWORTHY Results Results

#26.1.3#26.1.3

Psf.Psf.Bedrock.Bedrock.

PSFPSF/Professional Service Firm/Beliefs/Professional Service Firm/Beliefs

ProfessionProfession: : Calling/Passion to make aCalling/Passion to make a difference/Excellence difference/Excellence (always)(always)

point of viewpoint of view: : know exactly what weknow exactly what we stand for/ stand for/ “Dramatic “Dramatic Difference”Difference”

ClientClient: : enduring, test-the-limits enduring, test-the-limits relationship/“Trusted advisor” relationship/“Trusted advisor”

SolutionSolution: : Rock His-her World/ Rock His-her World/ “wow”“wow”// implemented “Culture implemented “Culture change”/change”/ >>>>>> “satisfaction” >>>>>> “satisfaction”

#26.1.3.1#26.1.3.1

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

#26.1.3.2#26.1.3.2

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet LifetimeChief of Fleet Lifetime Value Value MaximizationMaximization

StrategicStrategic Supply-chain Executive Supply-chain Executive

Customer Customer ExperienceExperience Director Director (via drivers)

#26.1.3.3#26.1.3.3

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)

#26.1.3.4#26.1.3.4

PSF Transformation: Credit Department/Trek

Was Is

Credit Dept Financial ServicesFinancial Services

Hammer on dealers until Make dealers successful so theyMake dealers successful so theythey pay CAN payCAN pay

AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany

23 employees 12 employees12 employees

Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M

Identify risky dealers Identify opportunitiesIdentify opportunities

Cost Center Profit CenterProfit Center

No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments

Source: John Burke/0330.06

#26.1.3.5#26.1.3.5

Ideal “finance staffer”:Ideal “finance staffer”: Full-scale Full-scale “business partner” “business partner” [CFO?] to the/each [CFO?] to the/each

department she department she serves.serves.

Ideal “finance staffer”: Ideal “finance staffer”:

**Full-scale “business partner”**Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves.she serves.**Not cop—obsessed instead with**Not cop—obsessed instead with value-addedvalue-added**Integration first, “stovepipe” **Integration first, “stovepipe” secondarysecondary**MBWA/bigtime**MBWA/bigtime**Networker to the rest of Finance**Networker to the rest of Finance

#26.1.3.6#26.1.3.6

Photographer: Louise Roach

Big Idea:

“Corporation” as “Corporation” as

Mega-“PSFMega-“PSF”” (Professional (Professional Service Firm*)Service Firm*)

* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”)

Creating/Applying Intellectual Capital (“Work Product”)

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

Core Mechanism:“Game-changing Solutions”

Brand You(S)Brand You(S)(“Distinct” or “Extinct”/The Talent)

+

Wow! Project(s)Wow! Project(s) (“Different” vs “Better”/The Work)

==

PSF(S)PSF(S) (Professional Service Firm “model”/The Organizing Principle)

=

“Corporation” as“Corporation” as

“Mega-“Mega-PSF”PSF”

PSF (VA, Wow)PSF (VA, Wow) + XFX (Wow) = + XFX (Wow) =

X (Wow) X (Wow)

Photographer: Mike Brake

The FEVP/Fundamental EnterThe FEVP/Fundamental Enterpprise Value-Added rise Value-Added Proposition-EProposition-Eqquation/Mark2008uation/Mark2008

(1) 100% (1) 100% “WOW PROJECTS”“WOW PROJECTS” (New Org “DNA”/“The Work”)(New Org “DNA”/“The Work”)

++ (2) Incredible (2) Incredible “TALENT”“TALENT” Transformed intoTransformed into (3) Entrepreneurial (3) Entrepreneurial “BRAND YOUs”“BRAND YOUs” and and

(4) Given Room-to-Roam & Launched on(4) Given Room-to-Roam & Launched on Awesome Awesome “QUESTS”“QUESTS”

== (5) Internal (5) Internal ““Rockin’ PSFs”Rockin’ PSFs” (Staff Depts. Morphed into (Staff Depts. Morphed into

Wildly Innovative Wildly Innovative PProfessional rofessional SService ervice FFirms) … irms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise

Value Proposition from “Superior Products & Services” to Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” “ENCOMPASSING SOLUTIONS” &&

“GAME-CHANGING CLIENT“GAME-CHANGING CLIENT SUCCESS” SUCCESS”

Big Idea/“Meta”-Idea/Premier “Engine of Value Added”

(1) (1) The TalentThe Talent: “Best Roster” of Entrepreneurial-: “Best Roster” of Entrepreneurial-minded minded Brand Yous.Brand Yous.

(2) (2) The (Virtual) OrganizationThe (Virtual) Organization: Internal or : Internal or External External “PSF”/Professional Service Firm“PSF”/Professional Service Firm

working with “Best Anywhere” = Engine of working with “Best Anywhere” = Engine of Value Added through the Application of Creative Value Added through the Application of Creative

“Intellectual Capital”“Intellectual Capital”

(3) (3) The Work ProductThe Work Product: “Game Changer”/ : “Game Changer”/ “Gaspworthy” “Gaspworthy” WOW ProjectsWOW Projects

“… “… but I'm having a hard timebut I'm having a hard time imagining 300 million Brand Yous.”imagining 300 million Brand Yous.”

““Would you call a clerk in a purchasing Would you call a clerk in a purchasing department at a big insurance company department at a big insurance company

"brand you"? Probably not. But what "brand you"? Probably not. But what about a single Hispanic Mom, age 32, about a single Hispanic Mom, age 32,

raising 3 kids in the LA area and holding raising 3 kids in the LA area and holding 2.5 jobs to do so? I'd call her a hero, self-2.5 jobs to do so? I'd call her a hero, self-

reliant, resilient--and a Brand You!”reliant, resilient--and a Brand You!”

Posted by tom peters at November 20, 2006 10:16 PM

#26.1.4#26.1.4

The WOWWOW!! Project.

A “position” is A “position” is

notnot an an

“accomplishment.”“accomplishment.” —TP

““Let’s make Let’s make a dent in the a dent in the universe!”universe!” —Steve

Jobs

Your Current Project?Your Current Project?

1. Another day’s work/Pays1. Another day’s work/Pays the rent. the rent.4. Of value.4. Of value.7. Pretty Damn Cool/Definitely7. Pretty Damn Cool/Definitely subversive. subversive.10.10. WE AIM TO CHANGE THEWE AIM TO CHANGE THE WORLD. WORLD. (Insane!/Insanely(Insane!/Insanely Great!/WOW!) Great!/WOW!)

““Every project we undertake starts with Every project we undertake starts with

the same question:the same question: ‘‘How can How can we do what has we do what has never been done never been done bebefforeore?’”?’” —Stuart Hornery, Lend Lease—Stuart Hornery, Lend Lease

If you are not If you are not prepared to be prepared to be fired over your fired over your

beliefs … you are beliefs … you are working on the working on the

wrong project.wrong project. —TP

#26.1.5#26.1.5

WOWWOW!! Projects:

Nuts & Bolts (a few)

Playmate!*Playmate!*Playpen!Playpen!

Prototype!Prototype!

*Can be Client, supplier … as well as Insider

Where to look for “Playmates”:

F.F.F.F.F.F.F.F. (Find a Fellow Freak Faraway)

F2FF2F!/!/f2fKf2fK!/!/1@T1@T//R.F!A.R.F!A.***Freak-to-Freak/Freak-to-Freaky Kustomer/ One at a Time/ Ready.Fire!Aim.*Freak-to-Freak/Freak-to-Freaky Kustomer/ One at a Time/ Ready.Fire!Aim.

Forward, march: : The The “Sri Lanka “Sri Lanka Stratagem”Stratagem”

Where NOT to look for “Playmates”: BIGBIG Division, BIGBIG Customer, BIGBIG Vendor,

UPUP

Culture of Prototyping

“Effective prototyping may be

the most valuable core the most valuable core competencecompetence an innovative

organization can hope

to have.” —Michael Schrage

#26.1.6#26.1.6

Starting a WOWWOW!! Projects Projects

Epidemic:Epidemic:

Demos, Heroes, Demos, Heroes, Stories!Stories!

Premise:

““Ordering” Ordering” Systemic Systemic

Change is a Change is a Waste of Waste of

Time!Time!

““Somewhere in your Somewhere in your organization, groups of people organization, groups of people

are already doing things are already doing things

differently and better. differently and better. To To create lasting change, create lasting change,

find these areas of find these areas of positive deviance and positive deviance and fan the flamesfan the flames.”.” —Richard Tanner —Richard Tanner

Pascale &Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” Jerry Sternin, “Your Company’s Secret Change Agents,” HBRHBR

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them.and try to fix them. II look for things that look for things that went right, and try went right, and try to build off themto build off them.”.” ——

Bob Stone (Mr ReGo)Bob Stone (Mr ReGo)

JKCJKC

JKC

1. Scour for renegades; wine & dine.

2. Go outside for funds.

Demo = Story“A key – perhaps the key –

to leadership is thethe effective communication effective communication

of a storof a story.”y.”—Howard Gardner, Leading Minds:

An Anatomy of Leadership

Best Best story story wins!wins!

REAL Org Change: Demos & ModelsDemos & Models (“Model (“Model

Installations,” “ReGo Labs”)/ Installations,” “ReGo Labs”)/ HeroesHeroes (mostly extant: “burned to (mostly extant: “burned to

reinvent gov’t”)/ reinvent gov’t”)/ StoriesStories && StorytellersStorytellers (Props!)/ (Props!)/

ChroniclersChroniclers (Writers, Videographers, Pamphleteers, Etc.)/ (Writers, Videographers, Pamphleteers, Etc.)/

CheerleadersCheerleaders && RecognitionRecognition (Pos>>Neg, Volume)/ (Pos>>Neg, Volume)/

New LanguageNew Language (Hot/Emotional/WOW)/ (Hot/Emotional/WOW)/ SeekersSeekers

(networking mania)/ (networking mania)/ ProtectorsProtectors/ / Support GroupsSupport Groups/ /

End Runs—“Pull Strategy”End Runs—“Pull Strategy” (weird alliances, weird (weird alliances, weird

customers, weird suppliers, weird alumnae-JKC)/ customers, weird suppliers, weird alumnae-JKC)/ Field “Real Field “Real People” FocusPeople” Focus (3 COs) (long way away)/(3 COs) (long way away)/

SpeedSpeed (O.O.D.A. Loops—act before the “bad guys” can react) (O.O.D.A. Loops—act before the “bad guys” can react)

C.f., Bob Stone, C.f., Bob Stone, Lessons from an Uncivil ServantLessons from an Uncivil Servant

Demos!Demos! Heroes! Heroes! Stories!Stories!

Build a “School on top of a school”/Continuing-Exec

Ed (The Parallel (The Parallel Universe Strategy)Universe Strategy)

Stories … Stories … Paint me a Paint me a picturepicture … Story … Story

“infrastructure” … “infrastructure” … Demos Demos … Quick … Quick prototypes … prototypes …

ExperimentsExperiments … Heroes … … Heroes … Renegades Renegades … …

Skunkworks … Demo Skunkworks … Demo Funds … Funds … V.C.V.C. … G.M. … … G.M. … RosterRoster … Portfolio … … Portfolio … Stone’s Rules … Stone’s Rules … JKC’s JKC’s

RulesRules

Subversive Change

Be(very)ware “genetic constraints” (history’s looong Be(very)ware “genetic constraints” (history’s looong arm)arm)

You must “do” GandhiYou must “do” Gandhi

Hire weird (fulltime or temp)Hire weird (fulltime or temp)

Find the extant crazies (troll for them via offers to join Find the extant crazies (troll for them via offers to join weird project teams)weird project teams)

Create a (quiet) “Crazies Club”/Keep extendin’ the WebCreate a (quiet) “Crazies Club”/Keep extendin’ the Web

Create “boondocks projects” by the truckload (with Create “boondocks projects” by the truckload (with partners of every flavor)partners of every flavor)

Understand: Yours is a “protection racket”Understand: Yours is a “protection racket”Sky High Standards!! (There’s a deadly serious reason Sky High Standards!! (There’s a deadly serious reason

for “all this”—life or death)for “all this”—life or death)

TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John BoydKelly Johnson; John Boyd

SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?”

TP: ““YesYes! Work with him/her to re-frame ! Work with him/her to re-frame their principal project to the point that their principal project to the point that their their eeggoo is fully engaged and it becomes is fully engaged and it becomes something of a ‘life compulsion.’something of a ‘life compulsion.’ ” *

* “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”


UpUp


#26.2#26.2


VALUE-ADDED LADDER II.VALUE-ADDED LADDER II. EXPERIENCE IT. EXPERIENCE IT.

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

“The ‘surplus society’ has a surplus of

similarsimilar companies, employing

similarsimilar people, with

similarsimilar educational backgrounds,

coming up with similarsimilar ideas,

producing similarsimilar things, with

similarsimilar prices and

ssimilarimilar quality.” —Kjell Nordström and Jonas Ridderstråle, Funky Business

This is notnot a “mature

category.”

This is an “undistinguished category.”

“When we did it When we did it ‘right’ it was still ‘right’ it was still

pretty ordinary.”pretty ordinary.” —Barry Gibbons on “Nightmare No. 1”

““Companies have Companies have defined so much defined so much

‘best practice’ ‘best practice’ that they are now that they are now

more or less more or less identical.”identical.”

—Jesper Kunde, —Jesper Kunde, Unique Now ... or NeverUnique Now ... or Never

“The [Starbucks] Fix” Is on …

“We have “We have identified a identified a

‘third place.’‘third place.’ And

I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District

Manager

Warren Goes Warren Goes Shopping …Shopping …

QQ: : “Why did you buy “Why did you buy Jordan’s Furniture?”Jordan’s Furniture?”

AA: : “Jordan’s is “Jordan’s is

spectacular.spectacular. It’s all It’s all showmanship.showmanship.””Source: Warren Buffet interview/Source: Warren Buffet interview/Boston Sunday GlobeBoston Sunday Globe/12.05.04/12.05.04

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding Experiences*Experiences*

Customer Success/Implemented Customer Success/Implemented Gamechanging SolutionsGamechanging Solutions



**Theatrical Skills (Degree: Theater Arts)Theatrical Skills (Degree: Theater Arts)

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/ “Exceeded Expectations”

vs.

“Great “Great VacationVacation”/ ”/ “Great “Great ConferenceConference”/”/ “Operation “Operation PersonalPersonal

RenewalRenewal””

CCXXOO**Chief eXperience Officer

First Step (?!)First Step (?!): : Hire a Hire a theater directortheater director, , as a consultant as a consultant

or FTE!or FTE!

““Car designers need to create aCar designers need to create a storstoryy. Every car provides an . Every car provides an

opportunity to create anopportunity to create an adventureadventure. . ……

“The Prowler makes you“The Prowler makes you smilesmile. . Why? Because it’s Why? Because it’s focusedfocused. It has a. It has a pplotlot, a reason for being, a, a reason for being, a ppassionassion.”.”

Freeman Thomas, co-designer VW Beetle; designer Audi TTFreeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words …Hmmmm(?): “Only” Words …

StoryStoryAdventureAdventure

Smile Smile FocusFocus

PlotPlotPassionPassion

““Most executives Most executives have no idea how to have no idea how to

add value to a add value to a market in the market in the

metaphysical world.metaphysical world. But that is what the market

will cry out for in the future. There is no lack of

‘physical’ products to choose between.”

Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods: MaleMale dominance

Services &

Experiences: FemaleFemale dominancedominance

#26.2.1#26.2.1

FiveFivepianopiano

ss

PlanetreePlanetree:: A Radical Model for A Radical Model for

New New Healthcare/Healing/Healthcare/Healing/Wellness Wellness ExcellenceExcellence

"All sane persons agree that 'healthcare needs an overhaul.' And that's "All sane persons agree that 'healthcare needs an overhaul.' And that's where the agreement stops. Healthcare issues are thorny, and system where the agreement stops. Healthcare issues are thorny, and system

panaceas are about as likely as the sun rising in the West. But there is good panaceas are about as likely as the sun rising in the West. But there is good news here and there--and great news courtesy the Planetree Model.news here and there--and great news courtesy the Planetree Model.

"In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the "In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the

patient and frontline staff often get lost in the shuffle. Enter Planetree. While patient and frontline staff often get lost in the shuffle. Enter Planetree. While oceanic systemic solutions remain out of reach, Planetree provides a oceanic systemic solutions remain out of reach, Planetree provides a

remarkable demonstration of what healthcare--with the patient at the remarkable demonstration of what healthcare--with the patient at the center--can be all about; and is all about among Planetree Alliance members.center--can be all about; and is all about among Planetree Alliance members.

"I know this may sound ridiculous, but everything about the 'model' works. It "I know this may sound ridiculous, but everything about the 'model' works. It

is great for patients and their families--and is truly about humanity and is great for patients and their families--and is truly about humanity and healing and health and longterm wellness, not just a 'fix' for today's problem. healing and health and longterm wellness, not just a 'fix' for today's problem.

It is great for staff--Planetree-Griffin is rightly near the top of the 'best It is great for staff--Planetree-Griffin is rightly near the top of the 'best places to work in America' list, year in and year out. And Planetree also places to work in America' list, year in and year out. And Planetree also

works as a 'business model'--any effectiveness measure you can name is in works as a 'business model'--any effectiveness measure you can name is in the Green Zone at Griffith.the Green Zone at Griffith.

"For 25 years my 'gig' has been 'excellence.' Put simply, there is no better "For 25 years my 'gig' has been 'excellence.' Put simply, there is no better

exemplar of customer-centered, employee-friendly excellence, in any exemplar of customer-centered, employee-friendly excellence, in any industry, than Griffin-Planetree. The Planetree model works--and in my industry, than Griffin-Planetree. The Planetree model works--and in my

extensive work in the health sector, I 'sell' it shamelessly, and pray that my extensive work in the health sector, I 'sell' it shamelessly, and pray that my clients are taking it all in."clients are taking it all in."

tom peters/response to request for comment on Planetreetom peters/response to request for comment on Planetree

The 9 Planetree Practices

1.1. The Importance of Human InteractionThe Importance of Human Interaction2. Informing and Empowering Diverse Populations: Consumer Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Health Libraries and Patient Information3. Healing Partnerships: The importance of Including Healing Partnerships: The importance of Including Friends and Family Friends and Family4. Nutrition: The Nurturing Aspect of Food Nutrition: The Nurturing Aspect of Food5. Spirituality: Inner Resources for Healing Spirituality: Inner Resources for Healing6.6. Human Touch: The Essentials of Communicating Human Touch: The Essentials of Communicating Caring Through Massage Caring Through Massage7.7. Healing Arts: Nutrition for the Soul Healing Arts: Nutrition for the Soul8.8. Integrating Complementary and Alternative Practices Integrating Complementary and Alternative Practices into Conventional Care into Conventional Care9.9. Healing Environments: Architecture and Design Healing Environments: Architecture and Design Conducive to Health Conducive to Health

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

The Patient-Family Experience

“Patients are stripped of Patients are stripped of control, their clothes are control, their clothes are

taken away, they have little taken away, they have little say over their schedule, and say over their schedule, and

they are deliberately they are deliberately separated from their family separated from their family

and friends. Healthcare and friends. Healthcare professionals control all of professionals control all of the information about their the information about their patients’ bodies and access patients’ bodies and access

to the people who can to the people who can answer questions and answer questions and

connect them with helpful connect them with helpful resources. Families are resources. Families are

treated more as intruders treated more as intruders than loved ones.”than loved ones.” —Putting Patients First,

Susan Frampton, Laura Gilpin, Patrick Charmel

1. The The Importance of Importance of

Human Human InteractionInteraction

Press Ganey Assoc: 139,380 former patients from 225 hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome

PSPS directldirectly related to y related to StaffStaff InteractionInteraction

PSPS directldirectly correlated with y correlated with Employee Employee SatisfactionSatisfaction


“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their

questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a

positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

2. Informing and Informing and Empowering Diverse Empowering Diverse

Populations: Populations: ConsumerConsumer Health Libraries and Health Libraries and

Patient InformationPatient Information

Planetree Health Resources Center/1981Planetree Health Resources Center/1981Planetree Classification SystemPlanetree Classification System

Consumer Health LibrariansConsumer Health LibrariansVolunteersVolunteers

Classes, lecturesClasses, lecturesHealth FairsHealth Fairs

Griffin’s Mobile Health Resource CenterGriffin’s Mobile Health Resource CenterOpen Chart PolicyOpen Chart Policy

Patient Progress NotesPatient Progress NotesCare Coordination ConferencesCare Coordination Conferences (Est (Est

goals, timetable, etc.)goals, timetable, etc.)


3. Healing Healing Partnerships: Partnerships: The The

Importance of Importance of IncludingIncluding

Friends and Friends and FamilyFamily

Care Partner ProgramsCare Partner Programs (IDs, discount meals, etc.)

Unrestricted visitsUnrestricted visits (“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one

hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members

may be present.”)

Collaborative Care ConferencesCollaborative Care ConferencesClinical Guidelines DiscussionsClinical Guidelines Discussions

Family SpacesFamily SpacesPet VisitsPet Visits (POP: Patients’ Own Pets)


4. Nutrition: Nutrition: The Nurturing The Nurturing Aspect of FoodAspect of Food

KitchenKitchen

Beautiful cutlery,Beautiful cutlery, plates, etc plates, etc

Chef reputationChef reputation


5. Spirituality: Spirituality: Inner Resources Inner Resources

for Healingfor Healing

Griffin: redesign chapelredesign chapel (waterfall, quiet music, open prayer book)

Other: music, flowers, portablemusic, flowers, portable labyrinth labyrinth


6. Human Touch: Human Touch: The Essentials of The Essentials of CommunicatingCommunicating

Caring Through Caring Through MassageMassage

Mid-Columbia Medical Center/Center for Mind and Body

Massage for every patient scheduled for Massage for every patient scheduled for ambulatory surgery ambulatory surgery (“Go into surgery with(“Go into surgery witha good attitude”) a good attitude”) Infant massageInfant massageStaff Staff massage massage (“caring for the caregivers”)(“caring for the caregivers”)Healing environments: chemo!Healing environments: chemo!


7.7. Healing Arts: Healing Arts: Nutrition forNutrition for

the Soul the Soul

GriffinGriffin:: Music in the parking Music in the parking lot; professional musicians in lot; professional musicians in

the lobby the lobby (7/week, 3-4hrs/day)(7/week, 3-4hrs/day) ; ;

5 5 pianospianos ; ;

volunteers volunteers (120-140 hrs arts & (120-140 hrs arts &

entertainment per month).entertainment per month).

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

8. Integrating Integrating Complementary and Complementary and

Alternative Practices Alternative Practices into Conventional into Conventional

CareCare

Griffin IMC/Integrative Medicine Center

MassageMassageAcupunctureAcupunctureMeditationMeditation

ChiropracticChiropracticNutritional supplementsNutritional supplements

Aroma therapyAroma therapy


9.9. Healing Healing Environments: Environments:

Architecture andArchitecture and Design ConduciveDesign Conducive

to Healthto Health

“Planetree Look”

Woods and natural materialsWoods and natural materialsIndirect lightingIndirect lighting

Homelike settingsHomelike settings

Goals: Goals: Welcome patients, friends and Welcome patients, friends and family … Value humans over family … Value humans over

technology .. Enable patients to technology .. Enable patients to participate in their care … Provide participate in their care … Provide

flexibility to personalize the care of each flexibility to personalize the care of each patient … Encourage caregivers to be patient … Encourage caregivers to be

responsive to patients … Foster a responsive to patients … Foster a connection to nature and beautyconnection to nature and beauty


Access to nurses station:

“Happen to”“Happen to”vs

“Happen with”“Happen with”Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Conclusion: Conclusion: Caring/Growth Caring/Growth “Experience“Experience””

““It was the goal of It was the goal of PlanetreePlanetree to help to help

patients not only get patients not only get well faster but also well faster but also

to stay well longer.”to stay well longer.”

—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

(Planetree Alliance/Griffin Hospital)

Care!/Love!/Spirit!Care!/Love!/Spirit!

Self-Control!Self-Control!

Connect!/learn!/Connect!/learn!/involve!/Engage!involve!/Engage!

Understanding!/Growth! Understanding!/Growth!

De-stress!/heal! De-stress!/heal!

Whole patient & family Whole patient & family & friends! & friends!

be well!/stay well!be well!/stay well!

““Planetree is about Planetree is about human beings human beings caring for other caring for other

human beings.”human beings.”

——Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin,, Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving Patrick Charmel (“Ladies and gentlemen serving

ladies and gentlemen”—4S credo) ladies and gentlemen”—4S credo)

F.Y.I.: It F.Y.I.: It works!works!

Griffin HosGriffin Hosppital/Derbital/Derbyy CT (Planetree Alliance “HQ”) CT (Planetree Alliance “HQ”) ResultsResults::

Financially successful. Financially successful. Expanding programs-Expanding programs-

physically.physically. Growing market Growing market share. share. Only hospital in Only hospital in

“100 Best Cos to Work for”—“100 Best Cos to Work for”—7 consecutive years, 7 consecutive years,

currently #6.currently #6. —“Five-Star Hospitals,” Joe Flower, strategy+business (#42)

9 July 2008/HealthLeaders Media9 July 2008/HealthLeaders Media

2008 Top 2008 Top Leadership Team in Leadership Team in Healthcare: Griffin Healthcare: Griffin

HospitalHospital

““How will you know when the healthcare industry has How will you know when the healthcare industry has finally entered the 21finally entered the 21stst century? century? When error rates at When error rates at hospitals are close to zero. hospitals are close to zero. When doctors and nurses When doctors and nurses

use evidence-based protocols in your treatment. use evidence-based protocols in your treatment. When When you can decide how much to spend on treatment, and you can decide how much to spend on treatment, and

you have the information and the opportunity to you have the information and the opportunity to determine the best value.determine the best value. When your primary care When your primary care physician is in charge of your extended care team, physician is in charge of your extended care team,

operating as your command central. operating as your command central. When all When all members of the medical community—nurses, doctors, members of the medical community—nurses, doctors,

pharmacists and specialists—work together seamlessly pharmacists and specialists—work together seamlessly on your behalf.on your behalf. When their combined efforts are When their combined efforts are

tracked, measured, and reported on—and the insurance tracked, measured, and reported on—and the insurance reimbursements awarded to them are based on reimbursements awarded to them are based on

performance. performance. When you see that hospitals, pharmacies When you see that hospitals, pharmacies and doctors are working harder in all aspects to and doctors are working harder in all aspects to

make sure you are an informed consumer who hasmake sure you are an informed consumer who has trust and confidence in the services they offer and the trust and confidence in the services they offer and the

prices they charge.” prices they charge.” —John Hammergren & Phil Harkins,—John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First TodaySkin in the Game: How Putting Yourself First Today

Will Revolutionize Healthcare Tomorrow Will Revolutionize Healthcare Tomorrow

““What’s Really Propping What’s Really Propping Up the Economy: Up the Economy:

Healthcare has added 1.7 Healthcare has added 1.7 million jobs since 2001. million jobs since 2001. The rest of the private The rest of the private

sector? sector? NoneNone.”.”

Source: Title, cover story, Source: Title, cover story, BusinessWeekBusinessWeek, 0925.2006, 0925.2006

#26.2.1.1#26.2.1.1

Part One:Part One: A A Civilian Looks Civilian Looks at Your Worldat Your World

““If we sent 30 percent If we sent 30 percent of the doctors in this of the doctors in this country to Africa, we country to Africa, we

might raise the level of might raise the level of health on both health on both

continents.”continents.” —Dr Elliott Fisher, —Dr Elliott Fisher,

Center of Evaluative Clinical Sciences, Dartmouth Medical SchoolCenter of Evaluative Clinical Sciences, Dartmouth Medical School (“Overdose,” (“Overdose,” AtlanticAtlantic, Shannon Brownlee.), Shannon Brownlee.)

The Healthcare14: U.S. Healthcare Trauma in 2008The Healthcare14: U.S. Healthcare Trauma in 2008

U.S. Life expectancy rank: U.S. Life expectancy rank: #45.#45.WHO, overall American healthcare system performance: WHO, overall American healthcare system performance: #37#37 (#1 in cost).(#1 in cost).Access: Denied to 10s of millions un/underinsured.Access: Denied to 10s of millions un/underinsured.Unnecessary annual health-system deaths: 200,000-400,000 orUnnecessary annual health-system deaths: 200,000-400,000 or more.*more.*Performance/top med centers: Problematic re quality of carePerformance/top med centers: Problematic re quality of care and follow-up.*and follow-up.*Over-treatment (meds, tests, procedures): Pandemic.*Over-treatment (meds, tests, procedures): Pandemic.*Use of hard evidence in medical decision-making: Spotty at best.*Use of hard evidence in medical decision-making: Spotty at best.*Collection of evidence based on reported treatment errors: Low.*Collection of evidence based on reported treatment errors: Low.*Use of S.O.P.s in treatment regimes: Spotty.*Use of S.O.P.s in treatment regimes: Spotty.*Incentives for appropriate care: Low.*Incentives for appropriate care: Low.*Incentives for Incentives for inin-appropriate care: High.*-appropriate care: High.*Emphasis on prevention and wellness: Low.*Emphasis on prevention and wellness: Low.*Emphasis on chronic-care: Low.*Emphasis on chronic-care: Low.*State-of-the-art IS/IT: Rare.*State-of-the-art IS/IT: Rare.*

*Fixable without legislation or major societal change—eg can by and large be improved dramatically without *Fixable without legislation or major societal change—eg can by and large be improved dramatically without some form of mandated universal access to care and in the absence of, say, a full-fledged War on Obesity. some form of mandated universal access to care and in the absence of, say, a full-fledged War on Obesity. (Evidence in support of this proposition is the fact that in every category starred above there are Pockets of (Evidence in support of this proposition is the fact that in every category starred above there are Pockets of Excellence—hospitals and other health-service organizations, facing the same realities as their peers, that Excellence—hospitals and other health-service organizations, facing the same realities as their peers, that really “get it.”)really “get it.”)

TP & Healthcare/May 2008:TP & Healthcare/May 2008:

***Prevention and wellness***Prevention and wellness***Population outcomes, outcomes in general;***Population outcomes, outcomes in general; key metricskey metrics***EMR, info-tech for procedural integration and guidance for***EMR, info-tech for procedural integration and guidance for evidence-based treatment.evidence-based treatment.***Safety***Safety***Quality***Quality***Chronic care***Chronic care***Provision of the basics***Provision of the basics***Simple tools (Checklists)***Simple tools (Checklists)***Clinical micro-systems (Patient Care Teams)***Clinical micro-systems (Patient Care Teams)***Patient Quarterbacks (Family Practice specialists, ***Patient Quarterbacks (Family Practice specialists, PAs, Nurses)PAs, Nurses)***Patient-centric/Healing environments (Planetree/Griffin)***Patient-centric/Healing environments (Planetree/Griffin)***Evidence-based medicine***Evidence-based medicine***Primary care***Primary care***Overtreatment***Overtreatment***Obesity***Obesity

Outline: 17 Outline: 17 “Chapters”“Chapters”

1.1. Some ResourcesSome Resources2.2. “ ‘“ ‘Bottom’ Line” Bottom’ Line” (??)(??): U.S. Life Expectancy : U.S. Life Expectancy

Ranks Ranks #45#453.3. K.I.A. & Wounded: A House (Hospital) of a K.I.A. & Wounded: A House (Hospital) of a

Half-million Horrors Half-million Horrors 4.4. How “It” “Works” (And Feels to the How “It” “Works” (And Feels to the

Inmates)Inmates)5. You Must Be Your Own Boss! 5. You Must Be Your Own Boss! 6. Over-treatment6. Over-treatment!!!!!!!!!!!! !!!!!!!!!!!! (One-third of Total (One-third of Total

Cost)Cost)7. F.Y.I.: The Dominating 7. F.Y.I.: The Dominating (!)(!) Role of Healthcare Role of Healthcare in the American Economyin the American Economy8. Pick of the Litter: Our 8. Pick of the Litter: Our “Best”“Best” Hospitals? Hospitals?

(Hint: Drum Roll for the (Hint: Drum Roll for the VAVA!) !) 9. See No Evil, Report No Evil: A Culture of9. See No Evil, Report No Evil: A Culture of Cover-upCover-up

10. And “They” Call It “Science” I: The10. And “They” Call It “Science” I: The Overwhelming Lack of Treatment ValidationOverwhelming Lack of Treatment Validation11. And “They” Call It “Science” II: Astounding11. And “They” Call It “Science” II: Astounding Geographic Treatment VariationGeographic Treatment Variation12. Shining Star, A/12. Shining Star, A/TheThe … …13. IS/IT: The “Dark Ages” Saga Continues 13. IS/IT: The “Dark Ages” Saga Continues 14.14. K.I.S.S./Keep It Simple, Stupid: Un-sexyK.I.S.S./Keep It Simple, Stupid: Un-sexy “ “Stuff” Could Save Tens of Thousands ofStuff” Could Save Tens of Thousands of Lives and Extend Hundreds of ThousandsLives and Extend Hundreds of Thousands of Others of Others 15. Wellness-Prevention: No Good Deed Goes15. Wellness-Prevention: No Good Deed Goes UnpunishedUnpunished16. From “Healthcare” to “Health”: 16. From “Healthcare” to “Health”: The “Oughtas” The “Oughtas” 17. Healthcare Meets Health: The Incredible17. Healthcare Meets Health: The Incredible Case of the Planetree AllianceCase of the Planetree AllianceBonus: Tom’s NobelsBonus: Tom’s Nobels

10. And “They” Call It “Science” I: The10. And “They” Call It “Science” I: The Overwhelming Lack of Treatment ValidationOverwhelming Lack of Treatment Validation11. And “They” Call It “Science” II: Astounding11. And “They” Call It “Science” II: Astounding Geographic Treatment VariationGeographic Treatment Variation12. Shining Star, A/12. Shining Star, A/TheThe … …13. IS/IT: The “Dark Ages” Saga Continues 13. IS/IT: The “Dark Ages” Saga Continues 14.14. K.I.S.S./Keep It Simple, Stupid: Un-sexyK.I.S.S./Keep It Simple, Stupid: Un-sexy “ “Stuff” Could Save Tens of Thousands ofStuff” Could Save Tens of Thousands of Lives and Extend Hundreds of ThousandsLives and Extend Hundreds of Thousands of Others of Others 15. Wellness-Prevention: No Good Deed Goes15. Wellness-Prevention: No Good Deed Goes UnpunishedUnpunished16. From “Healthcare” to “Health”: 16. From “Healthcare” to “Health”: The “Oughtas” The “Oughtas” 17. Healthcare Meets Health: The Incredible17. Healthcare Meets Health: The Incredible Case of the Planetree AllianceCase of the Planetree AllianceBonus: Tom’s NobelsBonus: Tom’s Nobels

CEO, CMO/CHIEFCEO, CMO/CHIEF MEDICAL OFFICER, CNO/CHIEF NURSING OFFICER, CFO, ETC. [traditional jobs]MEDICAL OFFICER, CNO/CHIEF NURSING OFFICER, CFO, ETC. [traditional jobs]DEPUTY CEO/PATIENT SAFETY & QUALITYDEPUTY CEO/PATIENT SAFETY & QUALITY Director “Hands Clean” MandateDirector “Hands Clean” Mandate Director Error-free Medications ProgramDirector Error-free Medications Program Director Simple-Tools-That-Save-Lives ProgramsDirector Simple-Tools-That-Save-Lives Programs Director Over-treatment Evaluation & ManagementDirector Over-treatment Evaluation & ManagementCHIEF CLINICAL EVALUATIONS OFFICERCHIEF CLINICAL EVALUATIONS OFFICER Director Evidence-based Medicine InitiativesDirector Evidence-based Medicine Initiatives Director Best-practices Program Director Best-practices Program Director Error Reporting & Evaluation InitiativeDirector Error Reporting & Evaluation InitiativeCISO/CHIEF INFORMATION SYSTEMS OFFICERCISO/CHIEF INFORMATION SYSTEMS OFFICER Director Electronic Medical RecordsDirector Electronic Medical Records Director Cross-functional IS Engagement & ImplementationDirector Cross-functional IS Engagement & Implementation TeamsTeamsDEPUTY CEO/HEALTH & HEALING & COMMUNITY OUTREACHDEPUTY CEO/HEALTH & HEALING & COMMUNITY OUTREACH Director Wellness & Prevention ProgramsDirector Wellness & Prevention Programs Director Follow-up Patient Behaviors ProgramDirector Follow-up Patient Behaviors Program Director Public Health InitiativesDirector Public Health Initiatives Director Wellness ProgramsDirector Wellness Programs Director Kids’ Education ProgramsDirector Kids’ Education ProgramsCPCCO/CHIEF PATIENT-CENTRIC CARE OFFICERCPCCO/CHIEF PATIENT-CENTRIC CARE OFFICER Director Patient Experience ProgramsDirector Patient Experience Programs Director Planetree Practices ProgramsDirector Planetree Practices Programs Director Patient “Home Port” & Self- & Family-Director Patient “Home Port” & Self- & Family- Management Programs Management Programs DEPUTY CEO/PEOPLEDEPUTY CEO/PEOPLE Director Teams-based OrganizationDirector Teams-based OrganizationCCCO/CHIEF CHRONIC-CARE OFFICERCCCO/CHIEF CHRONIC-CARE OFFICERDEPUTY CEO CROSS-FUNCTIONAL COORDINATION OFFICERDEPUTY CEO CROSS-FUNCTIONAL COORDINATION OFFICER Director Patient-Treatment Teams ImplementationDirector Patient-Treatment Teams Implementation Director Cross-functional Communications InitiativesDirector Cross-functional Communications Initiatives

““1-in-7 Chance 1-in-7 Chance of Medical of Medical

Mishap: Health Mishap: Health Ministry Report”Ministry Report”

Source: Headline, The Press, Christchurch, NZ, Source: Headline, The Press, Christchurch, NZ, 0216.08 (odds of a screw-up during a hospital stay)0216.08 (odds of a screw-up during a hospital stay)

DVM/Lyme/2005-2008DVM/Lyme/2005-2008

**Multiple diagnoses (>5)**Multiple diagnoses (>5)**Specialist self-certainty**Specialist self-certainty**Health deterioration failed to produce urgency-**Health deterioration failed to produce urgency- communication communication**Virtually no communications between specialists**Virtually no communications between specialists**Follow-up very spotty unless bugged incessantly**Follow-up very spotty unless bugged incessantly**Lost major test results, mis-placed 3 or 4**Lost major test results, mis-placed 3 or 4 occasions occasions**Near fatal drug mistake (one nurse takes charge)**Near fatal drug mistake (one nurse takes charge)**Effectively, disinterest in chronic-care**Effectively, disinterest in chronic-care**Lack of curiosity**Lack of curiosity

4545

““Bottom line” :Bottom line” : 19001900--19601960, , life expectancy grew life expectancy grew 0.64 0.64 %% per year; per year; 19601960--20022002, ,

0.24%0.24% per year, half from per year, half from airbags, gun locks, airbags, gun locks,

service employment …service employment …

Source:Source: Best Care Anywhere: Why VA Healthcare Is Better Than YoursBest Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman/Phillip Longman

““The more doctors and specialists around, the more The more doctors and specialists around, the more tests and procedures performed. And the results of all tests and procedures performed. And the results of all these tests and procedures? Lots more medical bills, these tests and procedures? Lots more medical bills,

exposure to medical errors, and a exposure to medical errors, and a loss of life exloss of life exppectancectancy.y.

““It was this last conclusion that was truly shocking, but it became It was this last conclusion that was truly shocking, but it became unavoidable when [Dartmouth’s Dr. Jack] Wennberg and others unavoidable when [Dartmouth’s Dr. Jack] Wennberg and others

broadened their studies.broadened their studies. They found it’s not They found it’s not just that renowned hospitals just that renowned hospitals and their specialists tend to and their specialists tend to

engage in massive engage in massive overtreatment. They also tend overtreatment. They also tend to be pto be pooroor atat p providinroviding g criticalcritical

butbut routine careroutine care.”.”Source:Source: Best Care Anywhere: Why VA Healthcare Is Better Than YoursBest Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman /Phillip Longman

““If we sent 30 percent of If we sent 30 percent of the doctors in this the doctors in this

country to Africa, we country to Africa, we might raise the level of might raise the level of

health on both health on both continents.”continents.” —Dr Elliott Fisher, —Dr Elliott Fisher,

Center of Evaluative Clinical Sciences, Dartmouth Center of Evaluative Clinical Sciences, Dartmouth Medical SchoolMedical School (“Overdose,” (“Overdose,” AtlanticAtlantic, Shannon , Shannon

Brownlee.)Brownlee.)

CDC 1998CDC 1998:: 98,00098,000 killedkilled and and 2,000,0002,000,000

injuredinjured from from hospital-caused drug hospital-caused drug

errors & infectionserrors & infections

1,000,0001,000,000 “serious medication errors per “serious medication errors per year” … “illegible handwriting, year” … “illegible handwriting, misplaced decimal points, and misplaced decimal points, and missed drug interactions and missed drug interactions and

allergies.”allergies.”

Source: Source: Wall Street Journal /Wall Street Journal /Institute of MedicineInstitute of Medicine

““HosHosppital infections kill an ital infections kill an estimated 103,000 estimated 103,000 ppeoeopplele

in the United States a in the United States a yyear, ear, as manas manyy as AIDS, breast as AIDS, breast

cancer and auto accidents cancer and auto accidents combinedcombined.. … Today, experts estimate that more than 60 percent of … Today, experts estimate that more than 60 percent of

staph infections are M.R.S.A. [up from 2 percent in 1974]. Hospitals in Denmark, staph infections are M.R.S.A. [up from 2 percent in 1974]. Hospitals in Denmark, Finland and the Netherlands once faced similar rates, but brought them down to below Finland and the Netherlands once faced similar rates, but brought them down to below

1 percent. How? Through the rigorous enforcement of rules on hand washing, the 1 percent. How? Through the rigorous enforcement of rules on hand washing, the meticulous cleaning of equipment and hospital rooms, the use of gowns and meticulous cleaning of equipment and hospital rooms, the use of gowns and

disposable aprons to prevent doctors and nurses from spreading germs on clothing disposable aprons to prevent doctors and nurses from spreading germs on clothing and the testing of incoming patients to identify and isolate those carrying the germ. … and the testing of incoming patients to identify and isolate those carrying the germ. … Many hospital administrators say they can’t afford to take the necessary precautionsMany hospital administrators say they can’t afford to take the necessary precautions ..””

—Betsy McCaughey, founder of the Committee to Reduce Infection Deaths (—Betsy McCaughey, founder of the Committee to Reduce Infection Deaths (New York TimesNew York Times/06.06.2005)/06.06.2005)

““ExExpperts estimate that moreerts estimate that more than a hundred thousand than a hundred thousand

Americans die each Americans die each yyear notear not from illness but from their from illness but from their pprescrirescripption drution druggss.. Those deaths, Those deaths,

occurring quietly, almost without notice in hospitals, emergency occurring quietly, almost without notice in hospitals, emergency rooms, and homes, make medicines one of the leading causes of rooms, and homes, make medicines one of the leading causes of death in the United States. On a daily basis, prescription pills are death in the United States. On a daily basis, prescription pills are

estimated to kill more than 270 Americans. … Prescription medicines, estimated to kill more than 270 Americans. … Prescription medicines, taken according to doctors’ instructions, kill more Americans than taken according to doctors’ instructions, kill more Americans than

either diabetes or Alzheimer’s disease.”either diabetes or Alzheimer’s disease.”

Source:Source: Our Daily Meds: How the Pharmaceutical Companies Our Daily Meds: How the Pharmaceutical Companies Transformed Themselves into Slick Marketing Machines and Transformed Themselves into Slick Marketing Machines and Hooked the Nation on Prescription Drugs Hooked the Nation on Prescription Drugs —Melody Petersen—Melody Petersen

140,000,000 140,000,000 illegible illegible

prescriptions prescriptions per yearper year

——John Hammergren & Phil Harkins, John Hammergren & Phil Harkins, Skin in the Game: How Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Putting Yourself First Today Will Revolutionize Healthcare

Tomorrow Tomorrow

**1,500,000,000,000**1,500,000,000,000 claims per year claims per year**30% errors**30% errors**15% lost**15% lost**25% paper-based**25% paper-basedSource: Source: John Hammergren & Phil Harkins, John Hammergren & Phil Harkins, Skin in the Game: Skin in the Game: How Putting Yourself First Today Will Revolutionize How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow Healthcare Tomorrow

““stunning lack of stunning lack of scientific knowledge scientific knowledge

about which about which treatments and treatments and

procedures actually procedures actually work”work”

Source:Source: Best Care Anywhere: Why VA Healthcare Is Better Than YoursBest Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman/Phillip Longman

““The results are deadly. In addition The results are deadly. In addition

to the to the 98,00098,000 killed by medical killed by medical

errors in hospitals and the errors in hospitals and the 90,00090,000 deaths caused by hospital deaths caused by hospital

infections, another infections, another 126,000126,000 die die from their doctor’s failure to from their doctor’s failure to

observe evidence-based protocols observe evidence-based protocols for for jjustust fourfour common conditions: common conditions:

hypertension, heart attack, hypertension, heart attack, pneumonia, and colorectal cancer.” pneumonia, and colorectal cancer.”

[TP: total [TP: total 314,000314,000]]Source:Source: Best Care Anywhere: Why VA Healthcare Is Better Than YoursBest Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman/Phillip Longman

““Plus God alone Plus God alone knows how many knows how many

casualties in casualties in doctors’ offices, doctors’ offices,

Tom”Tom” —Thom Mayer—Thom Mayer

Skin in the Game: How Skin in the Game: How Putting Yourself First Putting Yourself First

Today Will Revolutionize Today Will Revolutionize Healthcare TomorrowHealthcare Tomorrow

——John Hammergren (CEO, McKesson) & Phil HarkinsJohn Hammergren (CEO, McKesson) & Phil Harkins

2008: $2.2 trillion2008: $2.2 trillion2016: $4 trillion2016: $4 trillion

Source: Source: John Hammergren & Phil Harkins, John Hammergren & Phil Harkins, Skin in the Game: Skin in the Game: How Putting Yourself First Today Will Revolutionize How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow Healthcare Tomorrow

“ … “ … 25 to 30 percent of our 25 to 30 percent of our $2.2 trillion goes to wasted $2.2 trillion goes to wasted

care* in the form of care* in the form of preventable errors, incorrect preventable errors, incorrect

diagnoses, redundant diagnoses, redundant treatment, unnecessary treatment, unnecessary

infections, and extra time infections, and extra time spent in the hospital.spent in the hospital.

*and *and another 20%another 20% to paperwork to paperwork

Source: John Hammergren & Phil Harkins, Source: John Hammergren & Phil Harkins, Skin inSkin in the Game: How Putting Yourself First Today the Game: How Putting Yourself First Today

Will Revolutionize Healthcare Tomorrow Will Revolutionize Healthcare Tomorrow

140,000,000 140,000,000 illegible illegible

prescriptions prescriptions per yearper year

——John Hammergren & Phil Harkins, John Hammergren & Phil Harkins, Skin in the Game: How Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Putting Yourself First Today Will Revolutionize Healthcare

Tomorrow Tomorrow

**1,500,000,000,000**1,500,000,000,000 claims per year claims per year**30% errors**30% errors**15% lost**15% lost**25% paper-based**25% paper-basedSource: Source: John Hammergren & Phil Harkins, John Hammergren & Phil Harkins, Skin in the Game: Skin in the Game: How Putting Yourself First Today Will Revolutionize How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow Healthcare Tomorrow

””I can receive a BlackBerry I can receive a BlackBerry message from a colleague message from a colleague

climbing a mountain, yet I still climbing a mountain, yet I still show up at a doctor’s office show up at a doctor’s office [and after a 45-minite wait] [and after a 45-minite wait] learn that my hospital test learn that my hospital test

results have not arrived results have not arrived weeks after they should weeks after they should

have.”have.” ——John Hammergren & Phil Harkins, John Hammergren & Phil Harkins, Skin in the Game: Skin in the Game:

How Putting Yourself First Today Will Revolutionize How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow Healthcare Tomorrow

Up To 500,000 Lives:Up To 500,000 Lives: “The medical “The medical system has been unable to turn proven system has been unable to turn proven

remedies into everyday care.* Half the people remedies into everyday care.* Half the people who need to be treated to prevent heart who need to be treated to prevent heart attacks are not treated and half who are attacks are not treated and half who are

treated are treated inadequately. Patients go treated are treated inadequately. Patients go home with the wrong drugs or the wrong home with the wrong drugs or the wrong

doses or misimpressions about the doses or misimpressions about the importance of taking their medications.”importance of taking their medications.”

*More: 55% chance of “receiving the best *More: 55% chance of “receiving the best recommended care—which means getting scientifically recommended care—which means getting scientifically

appropriate, evidence-based medical treatment”appropriate, evidence-based medical treatment”

——The New York TimesThe New York Times, from John Hammergren &, from John Hammergren & Phil Harkins, Phil Harkins, Skin in the Game:How Putting YourselfSkin in the Game:How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow First Today Will Revolutionize Healthcare Tomorrow

““The private insurance industry The private insurance industry has little incentive to see people has little incentive to see people live healthy lives beyond 65 when live healthy lives beyond 65 when

their customers automatically their customers automatically drop out of the employer-based drop out of the employer-based

system and enter the system and enter the government-based system.”government-based system.”

—John Hammergren & Phil Harkins, —John Hammergren & Phil Harkins, Skin in the Game:Skin in the Game: How Putting Yourself First Today Will Revolutionize How Putting Yourself First Today Will Revolutionize

Healthcare TomorrowHealthcare Tomorrow

““How will you know when the healthcare industry has finally How will you know when the healthcare industry has finally entered the 21entered the 21stst century? When error rates at hospitals are century? When error rates at hospitals are close to zero. When doctors and nurses use evidence-based close to zero. When doctors and nurses use evidence-based

protocols in your treatment. When you can decide how protocols in your treatment. When you can decide how much to spend on treatment, and you have the information much to spend on treatment, and you have the information

and the opportunity to determine the best value. When and the opportunity to determine the best value. When your primary care physician is in charge of your extended your primary care physician is in charge of your extended care team, operating as your command central. When all care team, operating as your command central. When all

members of the medical community—nurses, doctors, members of the medical community—nurses, doctors, pharmacists and specialists—work together seamlessly on pharmacists and specialists—work together seamlessly on

your behalf. When their combined efforts are tracked, your behalf. When their combined efforts are tracked, measured, and reported on—and the insurance measured, and reported on—and the insurance reimbursements awarded to them are based on reimbursements awarded to them are based on

performance. When you see that hospitals, pharmacies and performance. When you see that hospitals, pharmacies and doctors are working harder in all aspects to make sure you doctors are working harder in all aspects to make sure you are an informed consumer who has trust and confidence in are an informed consumer who has trust and confidence in

the services they offer and the prices they charge.” the services they offer and the prices they charge.”

—John Hammergren & Phil Harkins, —John Hammergren & Phil Harkins, Skin in the Game: How PuttingSkin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow Yourself First Today Will Revolutionize Healthcare Tomorrow

“ … “ … 25 to 30 percent of our $2.2 trillion goes to25 to 30 percent of our $2.2 trillion goes to wasted care in the form of preventable errors, wasted care in the form of preventable errors,

incorrect diagnoses, redundant treatment, incorrect diagnoses, redundant treatment, unnecessary infections, and extra time spent in the unnecessary infections, and extra time spent in the

hospital.hospital. Team-based medicine, bar-Team-based medicine, bar-code prescription scanning, code prescription scanning,

evidence-based medicine—all of evidence-based medicine—all of these are systems and these are systems and

innovations that are being put innovations that are being put into place to eliminate waste so into place to eliminate waste so

that we can that we can re-apply the money.”re-apply the money.”



““We spend more time and We spend more time and effort buying a disposable effort buying a disposable good like a car than we do good like a car than we do

looking after an indispensable looking after an indispensable good—our health.”good—our health.”



#26.2.2#26.2.2

Excellence.Excellence.Bank on it.Bank on it.(commerce (commerce

bank.)bank.)

The Commerce Bank ModelThe Commerce Bank Model

“Are you going to “Are you going to costcost cutcut your way to prosperity?your way to prosperity?

Or …Or …

are you going to are you going to spendspend your your way to prosperity?”way to prosperity?”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman


*deposit focused.*deposit focused.*Customer value-added.*Customer value-added.*Great retail experience.*Great retail experience.

*Best facilities. Best locations.*Best facilities. Best locations.*No stupid rules.*No stupid rules.

*Driven by revenue growth, *Driven by revenue growth, not cost reduction.not cost reduction.




“cost cutting “cost cutting is a death is a death spiral.”spiral.”



““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hills (Top-line driven; standard —Vernon Hills (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)


““overover-invest in -invest in our people, our people, overover--

invest in our invest in our facilities.”facilities.”




“we “we wantwant them in our them in our

stores.”stores.”Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth


Commerce Bank: From “Service” to “Experience”Commerce Bank: From “Service” to “Experience”

7X. 730A-7X. 730A-800P. 800P.

F12A.F12A.**

**’93-’03/10 yr annual return: CB: 29%; ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.WM: 17%; HD: 16%. Mkt Cap: 48% p.a.


“we don’t accept the 80/20 “we don’t accept the 80/20 theory. We believe every customer theory. We believe every customer has value, that you can’t tell whichhas value, that you can’t tell which

one is the high-value customer one is the high-value customer over time, and that thatover time, and that that

philosophy degrades the brand.” philosophy degrades the brand.”




“every computer at commerce bank has a “every computer at commerce bank has a

specialspecial redred keykey on it that on it that

says, ‘found something stupid that we are says, ‘found something stupid that we are doing that interferes with our ability to service doing that interferes with our ability to service the customer? Tell us about it, and if we agree, the customer? Tell us about it, and if we agree,

we will give you $50.’”we will give you $50.’”



YESBANKYESBANK**

*Commerce Bank*Commerce Bank

““You do not merely want to be You do not merely want to be

the best of the best.the best of the best. You You want to be want to be

considered the considered the onlonlyy ones who ones who do what do what yyou ou

dodo.”.” —Jerry Garcia—Jerry Garcia

#26.2.3#26.2.3

WallopWal*Mart16*WallopWal*Mart16*

*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16

**Niche-aimed.Niche-aimed. (Never, ever “all things for all people,” a “mini- (Never, ever “all things for all people,” a “mini-Wal*Mart.)Wal*Mart.)

**Never attack the monsters head on!Never attack the monsters head on! (Instead steal niche (Instead steal niche business and lukewarm customers.)business and lukewarm customers.)

**““DramaticallDramatically y DifferentDifferent”” (La Difference ... within our community, (La Difference ... within our community,

our industry regionally, etc … is as obvious as the end of one’s nose!) our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)

**Compete on value/experience/intimacy, not price.Compete on value/experience/intimacy, not price. (You (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)

**Emotional bond with Clients, Vendors.Emotional bond with Clients, Vendors. (BEAT THE BIGGIES (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)ON EMOTION/CONNECTION!!)

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-

Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive

looking in the rearview mirror. The thinThe thingg that all that all these companies have in these companies have in common is that thecommon is that theyy have have nothinnothingg in common in common.. They are outliers.

They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this:

The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do

it.”

—Seth Godin, Fast Company


**Hands-on, emotional leadership.Hands-on, emotional leadership. (“We are a great & (“We are a great & cool & intimate & joyful & dramatically different team working to cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible transform our Clients lives via Consistently Incredible Experiences!”)Experiences!”)

**A community star!A community star! (“Sell” local-ness per se. Sell the hell (“Sell” local-ness per se. Sell the hell out of it!)out of it!)

**An incredible experience, from the first to last An incredible experience, from the first to last moment—and then in the follow-up!moment—and then in the follow-up! (“These guys (“These guys are cool! They ‘get’ me! They love me!”)are cool! They ‘get’ me! They love me!”)

**DESIGN DRIVEN!DESIGN DRIVEN! (“Design” is a premier weapon-in- (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the pursuit-of-the sublime for small-ish enterprises, including the professional services.)professional services.)


**Employer of choice.Employer of choice. (A very cool, well-paid (A very cool, well-paid place to work/learning and growth experience in at place to work/learning and growth experience in at least the short term … marked by notably progressive least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)policies.) (THIS IS EMINENTLY DO-ABLE!!)

**Sophisticated use of information Sophisticated use of information technologytechnology. (Small-“ish” is no excuse for “small . (Small-“ish” is no excuse for “small aims”/execution in IS/IT!)aims”/execution in IS/IT!)

**Web-power!Web-power! (The Web can make very small very (The Web can make very small very big … if the product-service is super-cool and one big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.)purposefully masters buzz/viral marketing.)

**Innovative!Innovative! (Must keep renewing and expanding (Must keep renewing and expanding and revising and re-imagining “the promise” to and revising and re-imagining “the promise” to employees, the customer, the community.)employees, the customer, the community.)


**Brand-Lovemark* Brand-Lovemark* (*Kevin Roberts)(*Kevin Roberts) Maniacs Maniacs! ! (“Branding” is not just for big folks with big budgets. And modest (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”)niche “lovemark.”)

**Focus on women-as-clients.Focus on women-as-clients. (Most don’t. How stupid.) (Most don’t. How stupid.)

**Excellence!Excellence! (A small player … per me … (A small player … per me …

has no right or reason to exist unless they are in Relentless has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen client experience at a time!—to beat the Big Guys in your chosen niche!)niche!)

The Small*Mart The Small*Mart Revolution: How Revolution: How Local Businesses Local Businesses Are Beating Local Are Beating Local

CompetitionCompetition —Michael Shuman

#26.2.3#26.2.3

<TG<TGWWvs.vs.

>TG>TGRR[Things Gone [Things Gone WRONGWRONG/Things Gone /Things Gone RIGHTRIGHT]]

“Perfection is achieved only by institutions on the

point of collapse.”— C. Northcote Parkinson

3M’s Innovation3M’s Innovation Crisis: How Six Crisis: How Six Sigma Almost Sigma Almost

SmotheredSmothered Its Idea Culture Its Idea Culture

Source: Title/Cover Story, Source: Title/Cover Story, BWBW, 0611.07 (, 0611.07 (“What’s remarkable is “What’s remarkable is how fast a culture can be torn apart,”how fast a culture can be torn apart,” 3M lead scientist; “In 3M lead scientist; “In

an innovation economy, [6 Sigma] is no longer a cure all”/ an innovation economy, [6 Sigma] is no longer a cure all”/BWBW))

““What Rikyu What Rikyu demanded was demanded was not cleanliness not cleanliness alone, but the alone, but the

beautiful and the beautiful and the natural also.”natural also.” —Kakuzo —Kakuzo

Okakura, Okakura, The Book of TeaThe Book of Tea

““Rikyu was watching his son Sho-an as he Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been nothing more to be done. The steps have been washed for the third time, the stone planters washed for the third time, the stone planters and the trees are well sprinkled with water, and the trees are well sprinkled with water, moss and lichens are shining with a fresh moss and lichens are shining with a fresh

verdure; not a twig, not a leaf have I left on the verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden, shook a tree and scattered over the

garden gold and crimson leaves, scraps of the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the not cleanliness alone, but the beautiful and the

natural also.”natural also.” —Kakuzo Okakura, —Kakuzo Okakura, The Book of TeaThe Book of Tea

Masters of “TGR” Cont.Masters of “TGR” Cont.

Granite Rock CoGranite Rock Co.. ((Cross it outCross it out if you think we did it poorly) if you think we did it poorly)

Elgin Corrugated BoxElgin Corrugated Box (days (days beforebefore--afterafter promised delivery) promised delivery)


UpUp


#26.3#26.3


SOUL I.SOUL I.DESIGN.DESIGN.

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Experiences Spellbinding Experiences viavia

“Soul” Through Design*“Soul” Through Design*

**Customer Success/Customer Success/Implemented Gamechanging SolutionsImplemented Gamechanging Solutions



**Blending Beauty, Usability, Theatricality (Degree: MFA/Blending Beauty, Usability, Theatricality (Degree: MFA/Master of Fine Arts, “D-school,” Cultural Anthropology)Master of Fine Arts, “D-school,” Cultural Anthropology)

““Business people Business people don’t need to don’t need to ‘understand ‘understand

designers better.’ designers better.’ Businesspeople need Businesspeople need

to be designers.”to be designers.” —Roger Martin/Dean/Rotman Management School/—Roger Martin/Dean/Rotman Management School/

University of TorontoUniversity of Toronto

Message (?????): Message (?????):

Men Men cannotcannot

design for women’s design for women’s needs.needs.

““Perhaps the macho Perhaps the macho look can be interestinglook can be interesting

… if you want to fight … if you want to fight dinosaurs. But now to dinosaurs. But now to

survive you need survive you need intelligence, not power and intelligence, not power and

aggression. Modern aggression. Modern intelligence means intuitionintelligence means intuition

—it’s female—it’s female..””

Source: Philippe Starck, Harvard Design MagazineSource: Philippe Starck, Harvard Design Magazine

#26.3.1#26.3.1


SYSTEMS. SYSTEMS. DESIGN. DESIGN. K.I.S.S.K.I.S.S.

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

Minutes Minutes (!!!!)(!!!!)

450/8450/8

Great design Great design == OneOne-page -page

business planbusiness plan (Jim Horan)(Jim Horan)

First Steps: “Beauty Contest”!

1. Select one form/document: invoice, 1. Select one form/document: invoice, airbill, sick leave policy, customer airbill, sick leave policy, customer returns claim form.returns claim form.

2.2. Rate the selected doc on a scale of 1 to Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions:10 = Work of Art] on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

Beauty Beauty Grace Grace

Clarity Clarity SimplicitySimplicity

“One bank is currently One bank is currently claiming to … claiming to …

‘leverage its global footprint to provide effective financial solutions for its customers by providing a

gateway to diverse markets.’”

——Charles HandyCharles Handy

“I assume that it is I assume that it is just saying that it isjust saying that it is

there tothere to ‘‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.”

—Charles Handy

““Seek honest, minimalist management. Seek honest, minimalist management. Look for companies run by a team that Look for companies run by a team that explains things clearly and briefly. … explains things clearly and briefly. …

You can tell a lot about the firm by You can tell a lot about the firm by

reading an annual report or two. reading an annual report or two. If If management can’t explain the management can’t explain the business in business in pplain English, move lain English, move

on to another firmon to another firm.. If you see If you see phrases like ‘creating knowledge-based phrases like ‘creating knowledge-based value in emerging markets’ … someone value in emerging markets’ … someone is trying to pull the wool over your eyes, is trying to pull the wool over your eyes, you lazy Fool. Run.” you lazy Fool. Run.” —Seth Jayson, “Stocks for the

Lazy Investor,” The Motley Fool

The Value-added Ladder/The Value-added Ladder/ MEMORABLE CONNECTION MEMORABLE CONNECTION

COURTESY THE “ENTIRE SUPPLY CHAIN”COURTESY THE “ENTIRE SUPPLY CHAIN”

WorkWork as Art* as Art*Customer Success/Customer Success/

Implemented Gamechanging SolutionsImplemented Gamechanging SolutionsServicesServicesGoodsGoods


**Artists and Process Engineers working in tandem Artists and Process Engineers working in tandem

#26.4#26.4


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.

DREAM IT.DREAM IT.

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We

convert ‘needs’ into ‘dreams.’ Sales are the

inevitable result.” — Judy George,

Domain Home Fashions

““No longer are we only an No longer are we only an

insurance provider.insurance provider. Today, Today, we also offer our we also offer our

customers the products customers the products and services that help and services that help

them achieve their them achieve their

dreamsdreams —whether it’s —whether it’s financial security, buying a car, financial security, buying a car,

paying for home repairs, or even paying for home repairs, or even taking a dream vacation.”taking a dream vacation.” ——Martin Martin

Feinstein, CEO, Farmers GroupFeinstein, CEO, Farmers Group

The Marketing of Dreams (Dreamketing)

DreamketingDreamketing:: Touching the clients’ Touching the clients’ dreams.dreams.DreamketingDreamketing:: The art of telling storiesThe art of telling stories and entertaining.and entertaining.DreamketingDreamketing: : Promote the dream,Promote the dream, not the product. not the product.DreamketingDreamketing:: Build the brand aroundBuild the brand around the main dream.the main dream.DreamketingDreamketing:: Build the “buzz,” theBuild the “buzz,” the “hype,” the “cult.”“hype,” the “cult.”

Source: Gian Luigi Longinotti-Buitoni


UpUp


The Value-added Ladder/ EMOTIONEMOTION

Dreams Come True*Dreams Come True*Design-driven Spellbinding

Experiences Customer Success/Implemented

Gamechanging SolutionsServicesGoods

Raw Materials

**Psychologists (Degree: Psychology)Psychologists (Degree: Psychology)

CCDMDM*

*Chief Dream Merchant

Six Market Profiles

1. Adventures for Sale1. Adventures for Sale2. The Market for Togetherness,2. The Market for Togetherness, Friendship and Love Friendship and Love3. The Market for Care3. The Market for Care4. The Who-Am-I Market4. The Who-Am-I Market5. The Market for Peace of Mind5. The Market for Peace of Mind6. The Market for Convictions6. The Market for Convictions

Rolf Jensen/The Dream Society: How the Coming Shift from

Information to Imagination Will Transform Your Business

Six Market Profiles

1. Adventures for Sale/ IBM-UPSIBM-UPS2. The Market for Togetherness, Friendship and Love/ IBM-UPSIBM-UPS3. The Market for Care/ IBM-UPSIBM-UPS4. The Who-Am-I Market/ IBM-UPSIBM-UPS5. The Market for Peace of Mind/ IBM-UPSIBM-UPS6. The Market for Convictions/ IBM-UPSIBM-UPS

Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as

individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we

live in an information-based society whose icon is the

computer. We stand facinWe stand facingg the fifth kind of societthe fifth kind of societyy: : the Dream Societthe Dream Society.y. … Future

products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to

products and services.”

Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

#26.4.1#26.4.1


SOUL II.SOUL II.THE STORY.THE STORY.

““StorytellinStorytelling g

is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

MarketMarket Power = Power =

StoryStory Power Power

Best Best story story wins!wins!

CCSTSTOO*

*Chief Storytelling Officer

“We are in the twilight of a society based on data. As information and intelligence become the domain of

computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from

our purchasing decisions to how we work with others.

ComComppanies will thrive anies will thrive on the basis of their on the basis of their stories and mstories and myythsths..

Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen

Institute for Future Studies

The Value-added Ladder/ EMOTIONEMOTION

Dreams Come Dreams Come True/Best Story Wins*True/Best Story Wins*Design-driven Spellbinding Experiences

Customer Success/Implemented Gamechanging Solutions

ServicesGoods

Raw Materials

**Anthropology (Degree: Anthropology)Anthropology (Degree: Anthropology)

#26.5#26.5


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.

ALL YOU NEED IS ALL YOU NEED IS LOVE.LOVE.

““Brands Brands have run out have run out

of juice. of juice. They’re They’re

deaddead.”.” —Kevin Roberts/Saatchi &

Saatchi

““Brands Are Out of Juice”Brands Are Out of Juice”

1. 1. Brands are worn out from overuse.Brands are worn out from overuse.2. 2. Brands are no longer mysterious.Brands are no longer mysterious.3. Brands can’t understand the new consumer.3. Brands can’t understand the new consumer.4. Brands struggle with good old-fashioned4. Brands struggle with good old-fashioned competition. competition.5. 5. Brands have been captured by formula.Brands have been captured by formula.6. 6. Brands have been smothered by creepingBrands have been smothered by creeping conservatism. conservatism.

Source: Source: Lovemarks: The Future Beyond BrandsLovemarks: The Future Beyond Brands, Kevin Roberts, Kevin Roberts

Kevin Roberts:

LovemarLovemar

ksks!!

““When I first suggested that When I first suggested that LoveLove was the was the way to transform business, grown CEOs way to transform business, grown CEOs

blushed and slid down behind annual blushed and slid down behind annual accounts. But I kept at them. I knew it was accounts. But I kept at them. I knew it was

LoveLove that was missing. I knew that that was missing. I knew that

LoveLove was the only way to ante up the was the only way to ante up the emotional temperature and create the new emotional temperature and create the new

kinds of relationships brands needed. I knew kinds of relationships brands needed. I knew

that that LoveLove was the only way business was the only way business could respond to the rapid shift in control to could respond to the rapid shift in control to

consumers.”consumers.” —Kevin Roberts/—Kevin Roberts/LovemarksLovemarks

Brand …………………………………………………. Lovemark

Recognized by consumers ………………. Loved by PeopleGeneric ………………………………………………… PersonalPresents a narrative ………………….. Creates a Love storyThe promise of quality ……………… A touch of SensualitySymbolic ………………………………………………….. IconicDefined ………………………………………………….. InfusedStatement ………………………………………………….. StoryDefined attributes ……………………... Wrapped in MysteryWrapped in MysteryValues ………………………………………………………. SpiritProfessional …………………………... Passionately CreativeAdvertising agency ………………………….. Ideas company

Source: Kevin Roberts, Lovemarks

“When we were working through the essentials of

a Lovemark,

MMyystersteryy was always at the top of the

list.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

Tattoo BrandTattoo Brand: What % of users would tattoo the brand name on their

body?

Top 10 “Tattoo Brands”*

Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8

Coke …. 7.7Coke …. 7.7Google .... 6.6Google .... 6.6Pepsi .... 6.1Pepsi .... 6.1Rolex …. 5.6Rolex …. 5.6Nike …. 4.6Nike …. 4.6

Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6

Nintendo …. 1.5Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

Top 10 “Tattoo Brands”*

Harley .… 18.9%Disney .... 14.8

Coke …. 7.7Google .... 6.6Pepsi .... 6.1Rolex …. 5.6

Bunge … ??Bunge … ??Nike …. 4.6

Adidas …. 3.1Absolut …. 2.6

Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom


UpUp


The Value-added Ladder/ The Value-added Ladder/ ECSTASYECSTASY

Lovemark*Lovemark* Dreams Come True/Dreams Come True/

Best Story WinsBest Story Wins Spellbinding Experiences/ Spellbinding Experiences/

“Soul” Through Design“Soul” Through DesignCustomer Success/Implemented Customer Success/Implemented

Gamechanging SolutionsGamechanging SolutionsServicesServicesGoodsGoods

Raw MaterialsRaw Materials

**Passion (Degree: ????)Passion (Degree: ????)

CCLL OO*

*Chief Lovemark Officer


UpUp


#26.6#26.6

4/74/7

Ladder.2008: 4 of Ladder.2008: 4 of 7!7!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions


Raw MaterialsRaw Materials

New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/Services/F-MF-MGoods/Goods/MM

Raw Materials/Raw Materials/MM

Note #1:Note #1:

Men:Men: Reductionist/Reductionist/ Things ThingsWomen:Women: Holistic/Holistic/ Relationships Relationships

Note #2:Note #2: The composition The composition of work groups engaged of work groups engaged

in the “4 of 7” “new in the “4 of 7” “new steps” on the Ladder steps” on the Ladder must “look like” the must “look like” the

global market we serve!global market we serve!

#26.7#26.7

EXCELLENCE. EXCELLENCE. DOES MATTER DOES MATTER

MATTER?MATTER?

““What Isn’t What Isn’t Matter Is Matter Is

What What Matters”Matters”

—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

4/4/96964/4/1.301.30

The The BootBoot … and … and TimberlandTimberland

The The TomatoTomato// FarmerFarmer … and … and

Campbell’sCampbell’s

VA “Teaching Moment”

““Andy pointed to Andy pointed to a molding, about a molding, about halfway up the halfway up the

wall …”wall …”

Ladder.2008: 4 of Ladder.2008: 4 of 7!7!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials

#26.7.1#26.7.1

EXCELLENCE.EXCELLENCE.NEW VALUE NEW VALUE EQUATION.EQUATION.

NEW “C-levels”. NEW “C-levels”.

C.E.O.C.E.O. to

C.D.O.C.D.O.

CCRROO*

*Chief RevenueRevenue Officer

CCXXOO**Chief eeXXperience perience Officer

CCDMDM*

*Chief DreamDream Merchant

CCFFO*O*

*Chief Festivals Officer

CCPIPI***Chief Portal Impresario

C C WWww

M*M*

*Chief *Chief WikiWorldWikiWorld Maniac Maniac

CCCCO*O*

*Chief Conversations Officer

CCLL OO*

*Chief LovemarkLovemark Officer

CCSSO*O*

*Chief Seduction Officer

CCSTSTOO*

*Chief StorytellingStorytelling Officer

CCDD OO**Chief DesignDesign Officer

CCtataOO*

*Chief talent acquisitiontalent acquisition Officer

CCFAFAOO*

*Chief *Chief freaks acquisitionfreaks acquisition OfficerOfficer

CCQQOO*

*Chief quest-meisterquest-meister

CCTTOO**Chief ThrillsThrills Officer

CCWWOO**Chief*Chief WOWWOW OfficerOfficer

CCDDoo* Chief DESTRUCTION DESTRUCTION Officer

CCTRTR oo**Chief TranscendenceTranscendence Officer

CC!!OO**Chief ! Officer

#27#27


BEDROCK.BEDROCK.LEADERSHIP. LEADERSHIP.

THE 9Ps. THE 9Ps. THE 1M.THE 1M.

““The West spent … The West spent … $$2.32.3 trilliontrillion

on foreign aid over the last five decades on foreign aid over the last five decades and still has and still has not not managed to get twelve-managed to get twelve-

cent medicines to children to prevent half of cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 all malaria deaths. The West spent $2.3

trillion and still trillion and still notnot managed to get three managed to get three dollars to each new mother to prevent five dollars to each new mother to prevent five

million child deaths. …million child deaths. … But I and But I and many other like-minded many other like-minded

people keep trying, not to people keep trying, not to abandon aid to the poor, but abandon aid to the poor, but

to to makemake suresure it reachesit reaches themthem.”.”

L(+21) = L(-L(+21) = L(-21)21)

““The West spent … The West spent … $$2.32.3 trilliontrillion

on foreign aid over the last five decades on foreign aid over the last five decades and still has and still has not not managed to get twelve-managed to get twelve-

cent medicines to children to prevent half of cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 all malaria deaths. The West spent $2.3

trillion and still trillion and still notnot managed to get three managed to get three dollars to each new mother to prevent five dollars to each new mother to prevent five

million child deaths. …million child deaths. … But I and But I and many other like-minded many other like-minded

people keep trying, not to people keep trying, not to abandon aid to the poor, but abandon aid to the poor, but

to to makemake suresure it reachesit reaches themthem.”.”

Leadership(21A.D.) = Leadership(21A.D.) = Leadership(21B.C.)Leadership(21B.C.)

THE 9PTHE 9Ps.s.

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..



PositivePositive..

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

““I never, ever thought of I never, ever thought of

myself as a businessman.myself as a businessman.

I was interested in I was interested in creating things creating things

I would be I would be proud of.”proud of.” ——Richard BransonRichard Branson

PURPOSEPURPOSE..

PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

““I am a … I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”

—Ben Zander—Ben Zander

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors

and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

MBWAMBWA

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi



PositivePositive..

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant


PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

Kevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt

““Ever notice that Ever notice that ‘what the hell’‘what the hell’ is is always the right always the right

decision?”decision?”

Source: unknown Hollywood script writer (courtesy The Borealis Press)Source: unknown Hollywood script writer (courtesy The Borealis Press)



PositivePositive..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”



PositivePositive..

The 1mThe 1m

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo

#28#28

““Excellence can be obtained if you:Excellence can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

Excellence Is a Excellence Is a Universal Universal Striving.Striving.

If Not Excellence, If Not Excellence, What? What?

#29#29

Ger-Ger-onon-i--i-momo!!

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

ENDENDPart 1.4Part 1.4

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Part 1.4 Tom Peters’ EXCELLENCE. ALWAYS. NEW MASTER/21 August 2008

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