customer intimacy, meet operational excellence

Customer Intimacy, Meet Operational

Excellence

Brad Power

FCB Partners Webinar

October 2, 2013

1

There are three common strategic themes

or “customer value propositions.”

Best Product

Consistent Best Total Solution

Operational Excellence

Customer Intimacy

Product Leadership

Travel agent

Financial

consultant

Source: “The Discipline of Market Leaders”, Michael Treacy and Fred Wiersema

2

L.L.Bean Is Increasing Operational

Excellence to Address a Performance Gap

Product Leadership

Operational Excellence

Customer Intimacy

Competitively Disadvantaged

World-Class

Competitive Parity

Industry Leadership

X = Where we are performing today

G = Goal

X

X

X G

G G

Performance Gap

L.L.Bean’s Journey to Operational

Transformation

From

• Home grown

systems

• Complexity, heroics

• High cost

To

• Standard systems for

back office functions

• Standard processes

• Operational excellence

3

4

ThedaCare Is Using Operational Excellence

to Differentiate Itself

Product Leadership

Operational Excellence

Customer Intimacy

Competitively Disadvantaged

World-Class

Competitive Parity

Industry Leadership

X = Where we are performing today

G = Goal

X X

X G

G G

Performance Advantage Opportunity

ThedaCare’s Journey to Operational

Transformation

From

• Ad hoc improvement

efforts

• Inconsistent clinical

performance

• Average cost

To

• ThedaCare Improvement

System

• Consistent clinical

performance

• Lowest costs in the state

5

Can You Have Both Customer Intimacy and

Operational Excellence?

6

Standards for

consistency, reliability,

and low cost

Autonomy to make

customer-specific

decisions

Continue the Dialogue

Hammer Forum:

Connecting Across

Boundaries

Best Practices Conference

October 17-18, 2013

The Westin Copley Place

Boston, MA

Process Redesign

Hammer Process Mastery

November 19-22, 2013

The Colonnade Hotel

Boston, MA

The Power of Process

Hammer Process Mastery

November 25-26, 2013

The Colonnade Hotel

Boston, MA

Leading Business

Transformation

Hammer Process Mastery

December 3-5, 2013

The Colonnade Hotel

Boston, MA

7

Version 1: 30th October 2007