customer intimacy, meet operational excellence
TRANSCRIPT
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