Blog : Leadership Innovation

Can an old dog learn new innovation tricks?

Can an old dog learn new innovation tricks?

Innovation at Microsoft

I had the opportunity to spend some time at Microsoft recently toting their new retail stores and their innovation center. They seem to have a laser focus on the consumer and their new product lines are exciting. Here is to the old dog learning new tricks.

Here is a quick video that I put together of what I saw. I was impressed to say the least.

To your health,

The Team at imagine.GO

 

My year of living wired (for health)

My year of living wired (for health)

 My Quantified Self

2013 was a big year for me. I resigned as Chief Innovation Officer of a major insurance plan at the end of 2012 to pursue what I consider to be the culmination of things I have been working on for well over a decade. I call this Health Model Innovation. My technical definition for it is to develop profitable and sustainable business models by creating and realigning the activity systems that improve member experience, boost provider performance, and enable payer cost control. Simply put, my goal is drive start-up businesses and new product lines that create disruptive change in the healthcare space.

This alone will be a big challenge for me in 2013. But I also need to save some time focusing on my personal health. That’s why in 2013 I am publicly challenging myself to exercise regularly and validating my journey through verifiable data. That means I’m recording the exercise that I do so that I have the data about my progress. Based on Wired magazine’s Thomas Goetz and his work on the “quantified self”, I will be using several tools to reach health goals and track my progress.

The Power of Habit: Why We Do What We Do in Life and BusinessSo you all know, I am fully aware that no one besides myself and my wife and child care about this endeavor – but my hope is that my fear of public shaming for not sticking to my guns pushes past my desire to take a nap or procrastinate. Moreover, I want this to be a sustained effort. I am a big believer in the power of habit, so I am trying to re-establish a good habit of daily exercise through the combination of incentives and dis-incentives – and a little bit of fun along the way.

Getting the Data

Nike+ FuelBand

To get the data I want, I need to start with a pedometer. Better yet, an accelerometer. You might be asking, “Kevin, what is the difference between an accelerometer and a pedometer?” Well, from a mechanical standpoint, accelerometers measure vertical acceleration, while pedometers are much simpler and only respond to vertical acceleration. Another difference is around $100 price point.

Nike Fuel BandSo, my accelerometer of choice is the Nike+ FuelBand. Keep in mind, I tested most of the major brands: the FitBit Classic, the BodyMedia FIT LINK, and the Striiv Smart Pedometer. First, I wanted something that was simple. Second, I wanted something that was unobtrusive. Third, I wanted something I would remember to carry with me at all times. For these reasons I settled on the Nike+ FuelBand – however, I am not sure the Nike+ FuelBand is as accurate as the FitBit, as it seems to count movement that I do not consider exercise – like typing up a new BLOG.

In any case, this is what I will be wearing to collect data on my exercise whether I’m doing P90X, running or sweating it out at boot camp in the morning.

Xbox Kinect

Another means to acquire data is using my Xbox Kinect. By now if you are unaware of what these nifty little devices do, you really must get out more. The Xbox Kinect is a motion sensing “camera” that inputs data into the Microsoft Xbox 360 video game console. At its launch in 2010, it set the Guinness World Record for being the “fastest selling consumer electronics device” with 8 million units sold in its first 60 days.

Along with the device though you need a game. I bought the new Nike+ Kinect Training. This game “creates a personalized, dynamic workout program based on your body, performance, fitness goals, schedule, and level of commitment.” You can check it out here. So far I like it.

 

The Workout

I was an athlete in college, and I am far from that now. I sustained a pretty severe back injury and my flexibility is something I am constantly fighting with. Moreover, I am pretty busy with work and being a father and husband. Finally, I can get bored doing the same thing too long.

So knowing all this – I have opted for a mix of the workouts provided in P90X (although not all of them), the Nike+ Kinect Training Game, riding my bike 1X per week, running 2X per week, and trying to do Yoga 2-3X per week.

Staying Motivated

For me, staying motivated is a mix of incentives and dis-incentives. The dis-incentive part is my public commitment to track and publish the data of my workouts and write about my progress on occasion. Fortunately, my Nike FuelBand publishes the data “auto-magically” for me, as does the Kinect game. I also need to mark things in the – old fashion way – and send a tweet now and again. So if you do not see a tweet now and again about my workouts – send me a not-so-gentle reminder. Finally, I am using some wellness apps to help me set goals, record progress, and win prizes.

RunKeeper

RunKeeper1

RunKeeper is a mobile app and website that helps keep track of running, walking, biking activities. Since running and riding my mountain bike are part of my regimen, I might as well track them and compare them against my friends. I also gave myself a goal inside of Run Keeper – to run in a 5K race by Feb 23, 2013. I think I may need to push that out a month or so.

There are several useful and cool features that RunKeeper provides. First, I can look for a local 5K to run in. I wanted to select the GATE River Run on March 9th (yes, I know that is past the 23rd) and then I remembered I will be at SXSW in Austin, TX at that time. I will need to keep looking for something that fits my goals and my schedule.

RunKeeper3

The second useful feature is a training plan. I signed up for the Beginner 5K plan that Mike Deibler M.S., C.S.C.S put together. Sweet!

RunKeeper2

Finally, I downloaded the iTunes App and uploaded it to my iPhone and iPod Touch that I will carry with me when I run.

Everymove

I also joined Everymove. This is part of the incentive portion of my program. My reasoning is if I am going to exercise anyway, I might as well get some rewards for it. I looked at several of these reward programs – CoolLeaf, ShapeUp, Trim Challenge, and a few more. The idea behind these companies is connecting health and wellness related vendors with consumers in a manner that drives access to discounts through activity. In some cases, they get employer and insurance companies to sponsor and even subsidize “points” that their employees and members earn for healthy behavior. It works well with airlines and hotels, why not health?

Everymove Logo 1

Nike Missions

Finally and just for fun, I am going to try out the Nike Fuel Missions. Nike has once again taken things to the next level by integrating their activity tracking products with a game that is powered by the user’s activity. This is something much bigger than Microsoft Kinect. Take a look.

Final Words

So as I get ready to embark on this journey, I ask that you all feel free to keep me honest and motivated. Here is to a healthy and happy new year for all of us.

 

To your health,

The Team at imagine.GO

Does Healthcare Need a Chief Experience Officer (CXO)?

Does Healthcare Need a Chief Experience Officer (CXO)?

Do Healthcare Companies need a Chief Exp. Officer?

What do I mean by Experience? Great customer-focused companies have built their business around the voice and perspectives of their customers. Healthcare companies, more specifically health insurance companies, are typically not primarily viewed as consumer-centric entities. The Affordable Care Act is a major impetus in changing healthcare from an almost industrialized, business-to-business modality to a retail one. This change is also driving healthcare companies to adopt the best practices of big box retailers and banks. One of those practices, albeit still somewhat new, is to have a C-level position dedicated to bringing emphasis on the customer to the forefront, as well as to govern the traditional business in how they “go retail.”

I advocate that all healthcare companies follow suit – provider, payers, and everyone in between – and create a Chief Experience Officer or Chief Customer Experience Officer.

Forrester has done some great research (April 2011 “Customer Experience Index, 2011: Health Insurance Plans”) on how customers feel about various industries. In 2009 health insurance ranked near the bottom at 51% – in 2011, it remained relatively unchanged – at 53%. What makes it worse is that other forms of insurance, like auto and life, rank much higher at 72%, so there should be no excuse for the healthcare companies to be satisfied with status quo. To also be perceived as lower than the cable companies is shocking, as it is nearly impossible in my experience to find someone who thinks they create great customer experiences.

Source Forrester Research
Source Forrester Research

Too many companies equate customer experience with customer service (or support). Service is a part of what makes a great overall customer experience. Experience is a lot more than just service and is certainly more than just a measure of your “first call resolution.” If you are more worried about solving the problems you create, as opposed to ceasing to cause problems altogether, you have missed the boat. Furthermore, if you consider “first call resolution” to technically be a good experience when the customer stays on the same phone call but talks with 3 or 4 “support specialists” and managers then you have again missed the boat.

WIKI defines “customer experience” as: “the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy.”

This works for me. What is to be understood from this is that many single experiences accumulated together provide an overall customer experience, which in turn drives the attitudes and behaviors of a customer towards a company. Let’s take a look at what this might look like for an average healthcare consumer.

A Consumer’s Healthcare Vignette

Sam is employed and has his benefits through his employer. His company has sponsored an annual worksite wellness event where Sam gets his blood glucose and cholesterol checked. Sam also plans to get a full diagnostic screening using ultrasound technology sometime this year from his in-network primary care provider.   He also scheduled an annual physical that includes a full blood lipid panel workup. Additionally, Sam has access to a kiosk located in his worksite clinic to check and report on his glucose levels. He also has a WebMD account through his employer but chooses not to use it because he perceives it as too complex. Sam’s wife gets a mailer from their insurance company inviting them to come in at the newly opened insurance retail center. If they do so – they get a free screening.

None of these experiences communicate to each other electronically, and none of them automatically or conveniently store Sam’s data in his Microsoft Health Vault account.

Because his previous annual physical showed a high glucose score, Sam was identified as pre-diabetic. He has received messages and calls about pre-diabetes care options from a “consultant” at his insurance provider. He wonders if this nurse works for his doctor and if not, does his doctor know she is calling and what she is saying. He wonders if his doctor would agree?

This only gets more confusing the more we go on. Consumer oriented or consumer focused companies understand and plan for an intentional customer experience. To drive a consistent customer experience (a branded experience) across all of your channels, you need someone in control who has both the purview and the spine to get things done. This example is where a Chief Experience/Customer Experience Officer comes in.

What is a Chief Experience Officer?

Chief Customer Officer: Getting Past Lip Service to Passionate ActionThis C-level position is most commonly referred to as the Chief Customer Officer (CXO), though other titles are used: Chief Client Officer (at OptumHealth), Chief Experience Officer (at Cigna), or Executive Vice President, Member Experience (at USAA). What is important to note is that these individuals are empowered to design, orchestrate, and improve customer experiences across every customer interaction.

In The Rise Of The Chief Customer Officer, a report by Forrester Research, they looked closely at this growing corporate trend. In summary, the report found that the role is far beyond just fixing the problems of unhappy customers. It is ultimately responsible for determining how to accelerate the practice of customer-centricity throughout an organization by teaching the techniques and building the capabilities that are needed to serve a consumer. This report, like many reports that deal with change management, also echoes the need for change to stem from the executive management team, which brings the impetus for change to the company and the customer’s voice into the boardroom.

In Chief Customer Officer – Getting Past Lip Service to Passionate Action, the role of the CXO is defined as:

  • Influence agreement on what and how to deliver the greatest value to customers
  • Establish metrics for defining relationships and value creation with customers
  • Drive accountability through the organization for those data and metrics
  • Clarify a common approach and process for driving the work across the organization

The Key Takeaways

So what should you get if your take the leap and create your own CXO role?

Better Design

You cannot have a good experience without good design. The CXO must be a believer in the principles of User Centered Design and invest in bringing those techniques into their company. In this role, creativity – not productivity is the key to business success. In my opinion, the incumbent should serve as the chief design officer as well. It does not mean that the CXO has to be a great designer, but they must appreciate the need for great design, recognize when they do not have it, and push to ensure they get it across all touch-points. This consistency can also be served by having a strong partnership with the brand team and brand officer.

Better Consistency

Consistently clear messages and appealing design only come when a company has a common design language and consistent design principles. If your company does not integrate the communications and consumer experience efforts, you will send mixed and probably confusing signals to your customers – without even trying. Brand is brand, and should stay that way. But ensuring the promise of the brand is delivered in a consistent and clear way, across channels, synchronized for maximum effectiveness, requires a CXO, in partnership with business operations and the brand team, to bring it to action.

Better Transparency

Consumers’ standards for clarity have changed. Regardless of what industry you are in, the best-in-class retailers are setting your customers’ expectations for a clear understanding of your products, their price, and what you are going to do when something goes wrong. But it is complex to deliver a good customer experience. Forrester analyst Liz Boehm says it best when she states the goal “it is not simply to provide what the consumer wants but provide it in a way that gives them information about something they might not want to understand.” Your customers expect you to have access to the same information about them as Amazon does, and the same winning attitude as Zappos does. Chances are that you are probably not there on either count right now. The role of the CXO is to bridge the communication gap and close the consumer’s disconnect between expectations and reality.

Can it work at a legacy Healthcare company?

How do we make it (customer experience focus) work?  This question is a far better question for healthcare companies to ask then- can it work? For any healthcare company that is preparing to conduct business in an environment impacted by reform, the voice of the customer is, and should be, a priority. I advocate here to create the role and office of a CXO to drive, help lead, and manage your company’s journey towards ensuring that the customer’s perspective is always brought to the forefront, storefront, and boardroom for consideration in all business decisions.

It bears repeating that the CXO role is not a senior support role. A company should not, as Forrester’s research indicates, rush to appoint a CXO in the attempt to solve poor customer satisfaction ratings. As Hagan suggests in his HBR article, creating a CXO requires three preconditions for success:

  • a mandate to differentiate based on customer experience, preferably from the CEO,
  • a portfolio of successful projects that create buy-in across the organization, and
  • a uniform understanding on the leadership team for what the position can accomplish.

While all retail companies must place emphasis on their customers’ perspective, a brand new C-level position may not always be necessary. As Manning states, the work of the CXO function is vital to achieving customer-centricity, but may be able to be fulfilled by an existing executive dedicated to overseeing and linking different functional groups, with the ultimate objective of maximizing customer and corporate value. Whether you appoint a CXO or not, it is clear that healthcare companies will benefit from a single executive, sitting on the executive management team, focused exclusively on the customer experience.

Some quick tips to get started

I plan to write more on these later but should you decide to create a CXO role here is a basic

6-step plan to get you started.

  1. Announce the Role and its Premise
  2. Design the Framework in which the role it will Exist and Operate
  3. Define the Resources internal and external to the Department
  4. Explain the Process, Tools, and Techniques that will support the framework
  5. Outline the Governance model for the strategy and work
  6. Publish the Metrics for Measurement

 

Here are some other good sources on Customer Experience.

 

To your health,

The Team at imagine.G

 

3 Ingredients for Health Innovation

3 Ingredients for Health Innovation

Healthcare Innovation Require Three Things

For well over the past decade I have made innovative healthcare companies my home. In that time, I have developed a simple litmus test to determine if the company I am working with is ready, willing, and able to create breakthrough innovation. Let’s call it my “3-legged Stool of Innovation Readiness.”  Like any three- legged stool, it cannot stand on only one or two legs – it takes all three.

An externality creating an impetus (Ready)

I have heard that only wet babies like change. While I am sure the part about the babies is true, I am not convinced that most companies are truly resistant to change. The inherent desire is there, which we will talk about next, but without some external force applying pressure, most companies will forgo change to focus on the problems of the here and now. I think of this as needing equal parts carrot (desire) and stick (impetus). However, very few companies are disciplined enough to apply their own stick. Ingredient number one of the three-legged stool is that impetus.

Look at the healthcare industry as an example. With the exception of those services rendered to consumers for direct cash payment (such as Lasik and liposuction), we have seen little change in quality or cost. In fact, many trends seem to point in the opposite direction. Now this is obviously not the entire fault of the healthcare industry – I have always argued that consumers are equally culpable. However like those folks that would rather eat potato chips and sit on the couch instead of getting out and exercising, companies do not often seek out a change in lifestyle – even when, change is necessary.

So along comes some outside force to require that change – The Affordable Care Act. Say what you will about its inability to address the underlying cost issues; Reform has forced the hand of the healthcare industry to do something about the problems at hand. And now that we are past the point of no return, these companies must act or potentially cease to exist.

Without PPACA, I am convinced there would be little or no room for disruptive innovators like myself within the “healthcare industrial complex”. As it turns out, we are now in high demand.

But even with the requirement to change, some companies are not willing to change. Many say they are but are merely paying lip service to that fact. Let’s talk more about that notion.

A real desire to change (Willing)

So the second ingredient is a deep desire or a sincere willingness to embrace change.

I have heard that addicts will not change their lifestyle until they hit bottom and bounce. I am not sure it is that drastic for healthcare companies. But obviously, a company must be willing to make room for new thinking and new thinkers before it can change.

Let’s take a lesson from science here. Consider that adding any catalyst to a mixture creates some reaction. However, most catalysts get used up in the reaction. If you are being asked to both implement a new disruptive idea and create a culture of change readiness (where none exists) at the same time – be forewarned. What I have found is that you do not want to be the straw that breaks the camel’s proverbial back.

What I mean by this is that to realize large-scale sustained change within a large company, you need an established platform for change in place. Staring from a cold stop requires all of your energy to just get the ball rolling, and leaves you no time or resources to implement your new ideas. So, if you find yourself in this scenario, ask yourself if you are primarily a “change agent” or an “innovator.” A change agent is willing to focus on creating the infrastructure required to sustain change and introduce new ideas –which may or may not be their own. This is noble work and requires a full commitment to the long-term culture of the company that one is changing. An innovator, as described in this discussion, is about creating new value and getting new ideas to market fast.

So, if you are primarily an innovator and you are focused on getting your idea to market quickly, without having the luxury of a change platform in place – you will likely meet roadblock after roadblock. And you will become frustrated. And you will want to quit or be asked to as you gain the reputation for not being able to “get anything done.”

So this cautionary tale is for both you the employee and for you the employer. To the employer, I recommend investing time and energy in facilitating change readiness so that you can bring change agents in and they will have success. For you the employee – make sure you know who you are and which role you are being asked to play. This will ensure your happiness and their success.

A means to invest in the future (Able)

So the final ingredient is the hardest to come by – ability. Even with the previous two (assuming they are ready and willing) – a company must be able to change. They must be financially stable enough to commit resources in the form of capital and talent directly to unknown or uncertain outcomes. For a company struggling to stay afloat, or concerned with the cost of upgrading their core “plumbing”, this can be a frightening and unrealistic necessity.

So know the environment you are going into and the one that you are in. If your company is not willing to dedicate at least 1% of their capability budget to innovation/R&D, then you will forever be chasing ideas and never implementing them. Great leaders like AJ Lafley from Procter & Gamble understood the need to invest in radical ideas. Ask your leadership if they are willing to “put their money where their mouth is” – with no strings attached.

A quick note of caution in this respect – if you are promised a budget based on other conditions (like finding savings elsewhere) – you are most likely not going to get it. We all know that overruns and unforeseen circumstances or priorities are common occurrences, and if you budget is relying on the efficiency and generosity of another group – be prepared.

A Final Note

When you find all three of these ingredients in a company – jump on the opportunity. My coming to Florida Blue (the Blue Cross Blue Shield Plan of Florida) in January of 2010 to be their Chief Innovation Officer, was predicated on their alignment with these three requirements for “breakthrough innovation.” As such, we were able to accomplish some amazing things and be counted among leaders in the healthcare payer space in innovation.

And if you are lucky enough to find all three ingredients, it is your job as an innovator and/or change agent to respect and nurture them within the organization. Ensure that you continually and effectively lead the clarion call for the importance and progress of your work. Congratulate your peers and leadership for their commitment to innovation, and remind them of their professional responsibility to advocate for, and push change in your company. Most importantly share in the victories you have created with and because of their sacrifices.

To your health

The Team at imagine.GO

Sponsor Customer Teams Not Sports Teams

Sponsor Customer Teams Not Sports Teams

The Current Marketing Model

Today I happened to notice the TV at the restaurant while eating brunch at with my family. The pre-game football fact was sponsored by Aetna and one of the football teams was sponsored by Florida Blue. It piqued my interest because at first it seemed novel, but as I thought more on it I wondered if it was a high-value use of marketing spend.

Recently, I have noticed the proliferation of health insurance companies sponsoring major sports franchises. As a marketer and capitalist, I get it – exposure to large audiences – but as a healthcare executive on the consumer side of the business, I hesitate. I pose this simple question, would it not be more sensible to invest advertising dollars in actual consumer sports leagues rather than professional sports? I believe that health insurance companies should sponsor sports, not sports teams.

Let me make clear, this is not a commentary on insurance companies – I recognize that as businesses they need to attract consumers and I feel they are a necessary part of the healthcare equation in America, and for the most part really do try to bring value to their customers. But with the affordable care act now in place, these traditional B2B companies are rushing headlong towards consumer markets. It is unfortunate that the advertising agencies they use have convinced them that their dollars are best spent associating their brands with Lebron James and Tiger Woods, as opposed to their actual constituents.

We did some research and found this interesting website that shows which companies sponsor what businesses. The graphic below from sponsorship.com is very telling – assuming it is accurate. Even without offering a total spend number, you can assume it is large as both professional sports and healthcare are big business.

Plan Sponsorship

 

Source: Sponsorship.com

Here are some examples of major insurance plans and their sports franchise sponsorships:

It even extends past the majors into college sports: Aetna sponsors the Taxslayer.com Gator Bowl in Jacksonville, Florida and Florida Blue sponsors the Florida Classic. Florida Blue also sponsors the Florida Sports Foundation which promotes Florida’s sports industry.

I am sure I missed more than a few, as this was just a basic search.

So, I asked myself, what is the motivation for an insurance plan to use professional sports as a brand booster? It must be two-fold, 1) the linkage with the sports as a model for healthy behavior and 2) brand differentiation via the association.

So, this is where the model breaks down for me. I can see Nike sponsoring pro sporting events as their constituents want to emulate the pro athletes that wear Nike gear. Seeing their favorite quarterback wearing branded wristbands results in a purchase decision for a young athlete. It also plays well for non-athlete fans that want to wear their favorite player’s jersey. A purchase decision ensures and the brand association works either way.

Now consider seeing a major insurer’s logo on a teams jersey, or up on the jumbotron. What effect does this have on influencing a consumer’s purchase decision? I would argue that the answer is resounding NONE. To be clear, I am arguing that a health insurer associating with a professional or college sports team has little or no bearing on a purchase decision by a consumer to buy or forgo an insurance product. Unlike the Nike example above, there is likely no transference of that brand association on a point of sale decision of one insurance product over another. One might argue that it actually has a negative effect in that with the perception of insurance premiums being so high – is that money better spent making insurance more affordable?

If this is actually not true – please someone show me, as I am very curious as to the true return on investment for this type of marketing spend.

A Better Way

There are some insurers that are actually focusing on sponsorship of sporting events that will likely result in healthy behaviors for their customers. This is a better model as it promotes the outcomes they most desire – healthy members. Remember, healthy people use health insurance products less than unhealthy ones do.  The result is a more profitable customer for the insurance plan.

  • Cigna has been involved heavily in the Walt Disney World Marathon Weekend.
  • Humana sponsors the National Senior Games Association, the governing organization for the largest multi-sport event in the world for adults over age 50; They also sponsor, thru their subsidiary HumanaVitality, many endurance sporting events (like the Kentucky Derby Festival Marathon and miniMarathon) to promote their wellness loyalty program.
  • Florida Blue sponsors a series of running events throughout its state. In fact, almost all health insurers sponsor local 5 and 10K in their hometowns.

 

This model makes great sense and should be continued. They might even consider getting some of the paid athletes to meet the insurance plan’s customers at the finish line as a reward. Something like “run a 5K and get a picture with your favorite sports hero” – this would be motivation for consumers indeed.

A Much Better Way

But I believe there is even a better way. Here is my idea. Health insurance companies should 100% subsidize both youth and adult sports leagues for the communities they serve.

This is good for the plan and consumer for a host of reasons:

  • First, Insurer X would actually be contributing to ensuring their customers are living healthy lives by investing in a healthy activity. They could then reward participants in the free league that are also their members – creating an incentive for those who are not to consider. Coupled with a well-designed channel-threading strategy plans could “gently” direct non-members to online, telephone, and in store sales reps to learn more.
  • Second, the publicity it will create for Insurer X. This would in effect be a perpetual positive PR generation machine.
  • Third, the experience it will create with mothers, who in fact are the key healthcare decision makers. Knowing they can afford to have their child participate in youth sports because of the investment of Insurer X would go a long way and yield fantastic word of mouth advertising.

 

Why not extend this sponsorship to adult sports leagues as well? All those twenty-somethings’ being influenced by the brand that cares which may translate to who they choose on the exchange.

What do you think?

To your health,

The Team at imagine.GO

How Do You Judge a Great Start-Up?

How Do You Judge a Great Start-Up?

Some good advice please

Seriously, how do you judge one start up against the next? I ask because I seem to be neck deep in looking at and evaluating start-ups lately.

Over the last 10 months, I have been busy designing and getting funded a (soon-to-be-launched) Healthbox accelerator in Florida, acting as a mentor for Start-Up America, judging regional start-ups for an entrepreneurial 503(C), and awarding innovativeness for the World Healthcare Innovation and Technology Congress.

Start-ups come in many shapes and sizes. Some have had series A-B-C or angel funding, some are just a smart person with a great idea looking to get incubated. Some have proven their market space; some have yet to do so?

So how do you judge across such a spectrum of diversity and maturity? Some standard valuation points investors look at are as follows:

  • Value proposition – who perceives what you do as valuable and how is it offered?
  • Market size and potential – how many customers can you get?
  • Investors already on-board – who thinks it’s a good idea, enough to commit funding?
  • Pedigree of the leadership team – who is driving the idea to market?
  • Exit strategy – how can this idea be monetized, for the company and for investors?

All of these are important and I take no case with any. But since I spend most of my time looking at how to change the healthcare ecosystem for the better, I am going to offer some additional points for any start-up looking into the healthcare domain.

First, who pays?

Seems obvious, right? You would be surprised at how many ideas I have heard from very bright people that have no clue as to how revenue will actually be generated.  And if your answer is “the plan will pay for it” – let me know how that works out for you? The plans are being pushed beyond their limits to find efficiencies in a rush to meet the reform market. There is some money available – but not as much as you might think. More so, they are distracted. If you really think the plan will pay for it, you need a clear and present value proposition that cuts through the noise and makes the case why your additional cost will be justified against squeezed margins.

Second, what is the ability to make a lasting and meaningful change?

The Power of Habit: Why We Do What We Do in Life and BusinessIf you are going to effect change, you must change behavior. Behavior change takes time. You cannot be the app de jour but rather a meaningful part of a person’s daily workflow. Since the axiom of no size fits all is relevant here, your great tool must be aligned to a specific user group – be specific and create meaning. Be general and users will not gain value from the interaction and lose interest. If users lose interest, their behavior does not change. See my point. For more on behavior change read The Power of Habit: Why We Do What We Do in Life and Business by Charles Duhigg.

Personally, I also invest in companies that work in areas I love and understand. Here is a company I am proud to say I am invested in. I use their services as often as my wife will allow me to do so! Deneki Outdoors owns and operates fly fishing lodges in Alaska, British Columbia, and the Bahamas. Take a look at their tag line – we run fishing lodges! Pretty simple and very understandable.

Deneki Outdoors

If you want to ever talk more with me on this idea, or any of my ideas, please meet me down in the Bahamas at our Andros South lodge. I will be waiting for you with a drink in hand and fly rod in the other.

To your health,

The Team at imagine.GO

Play to Your Personal Strengths

Play to Your Personal Strengths

Strive to know thyself!

I am a believer in the Gallup StrengthsFinder concept of self-recognition. The notion behind this bestselling book disassembles the myth that we need to be well-rounded in all aspects to be great leaders, successful business people, and happy humans. In summary, it states that we are all born with certain inherent talents, and instead of trying to improve in areas that are not natural to us, we should focus intently and intentionally on making our core talents become absolute strengths.

Of course, StrengthsFinder also states that you need to mitigate those behaviors that otherwise do not contribute to or are debilitating to your success – the equivalent of behaviorally not yelling “fire” in a crowded theater. But do not confuse something you do not do well (and some one else does) with a deficit or flaw.

Strengths Finder 2.0These are my talents, which I work every day to turn into strengths: Achiever, Strategic, Positivity, Connectedness, and Competition.

I can say unequivocally that these are me to a tee!

Here are my paraphrased definitions borrowed from Gallup’s StrengthsFinder 2.0:

  • Achiever – I have a great deal of stamina. I love to work hard and I take great satisfaction from being busy and productive.
  • Strategic – I create alternative ways to move something forward. When I am faced with any given situation, I can quickly spot the relevant patterns and issues, and see a path from A to Z.
  • Positivity – My enthusiasm is contagious, and I can get others excited and rally around a common mission. Moreover, I thrive on it.
  • Connectedness – I have an abounding faith in the links between all things. I believe there are few coincidences and that through this connection every event happens for a reason.
  • Competition – I measure progress against the performance of some mark. I revel in contests and I love to win. I will push others to be part of that pursuit of victory.

 

Why is this important?

It is important because no person is an island. And in business you have to assemble a team of individuals that can focus on, and be committed to, a common purpose or deliverable. As a leader, if you know yourself and your strengths, you will look to find others that can bolster that strength – and contribute other strengths for the benefit of the larger purpose. This is part of the most important puzzle facing business leaders – “how do I build the most effective team?”

To explain, I’d like to use a simple analogy.

Well-rounded people are like marbles – smooth, no sharp points, and easily moved. However, they only way they can “fit” with others in close quarters is to have a rigid structure holding them in. Think of the jar that holds a child’s marbles in place – without the jar there is chaos. As a leader of well-rounded people, you have to be the jar. That is a lot of effort and meaningless to boot. If all of your time is spent keeping the marbles stacked, how are you moving forward?

High-performers are like triangles – a secure base and an obvious point of strength. The triangle is one of the strongest shapes in nature and used often in building construction. It keeps its shape, rests on a strong footing, and can act as a strong support to other triangles stacked together. Now think of stacking triangles. Think about what you can build with lots of well-placed (high performers) triangles. The pyramids have stood the test of time. Will your team?

Don't Be Well Rounded

Understand what functions each role on your team or in your company performs. Create your teams so that the role aligns and draws on the strengths (and mitigates the weaknesses) of your team members. This means you have to hire well. Fit is part experience and part strength alignment with the rest of the team. Start with the end result in mind and build to that vision. Most importantly, do not hire when there is not a real fit or when the individual’s strengths do not contribute to the overall team – no matter the deadlines. Teams are living entities. They are the sum of the individuals within it, magnified by the relationships they have with each other.

When those relationships are based on strengths, the results will be good and they will be long lasting.

To your health,

The Team at imagine.GO

Creativity versus Best Practices

Creativity versus Best Practices

Harness Creativity Through Best Practice

I just perused a presentation that one of my team members gave me from another business pundit that thinks that best practices are a bad idea. It reminds of a book I read called Be an Orange in B-school 15 years ago, and other books I have seen since.

They all expound on the need for us each to be “different” in all ways in how we approach our work. Imagine a company where everyone does everything different – chaos and unhappiness!

This premise that to be different requires avoiding anything in the realm of wisdom or best practices is bad advice. These books seem to be written by folks who while creative have limited understanding on how to lead others.

Keep in mind, at the fundamental level, it is people that get any great idea built and people who must operate a successful company.

creativity through lens of best practice

There are certain types who are better-suited work on the “new-new” and some who prefer absolute consistency. Both are required to run a company. When you find the former, keep and nurture them. But even the ability to thrive in the ambiguity of disruption (new markets and new systems) requires a basis of predictability and consistency in the approach to getting the work done.

In my opinion, these books are outright false, or at least in-genuine. Innovators should always strive for creativity, but leaders must constantly seek a means to simplify what we do through the pragmatism of process and best practice. This makes life easier for those who help us get our ideas to market.

Final Words

Execution: The Discipline of Getting Things DoneBy the way, I went to Amazon to see if I could find that Orange book, and as I expected it was not there. Looks like the author has finally come around and has written a new book called The Simple Truth About Your Business: Why Focused and Steady Beats Business at the Speed of Light. I wondered what happened to all those oranges he made? If you want really good advice I suggest skipping the snake oil salesman and reading Execution: The Discipline of Getting Things Done by Larry Bossidy and Ram Charan. These are innovators and leaders that are worth the listen.

To your health,

The Team at imagine.GO