customer intimacy, meet operational excellence
DESCRIPTION
Retailer L.L.Bean and healthcare provider ThedaCare have historically emphasized providing unique solutions for each customer, but they are currently focusing on operational excellence to compete successfully. Can you do both at the same time?TRANSCRIPT
Customer Intimacy, Meet Operational Excellence
Brad Power FCB Partners Webinar
October 2, 2013
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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
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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
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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
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Can You Have Both Customer Intimacy and Operational Excellence?
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Standards for consistency, reliability, and low cost
Autonomy to make customer-specific decisions
Continue the Dialogue
q Hammer Forum: Connecting Across Boundaries Best Practices Conference October 17-18, 2013 The Westin Copley Place Boston, MA
q Process Redesign Hammer Process Mastery November 19-22, 2013 The Colonnade Hotel Boston, MA
q The Power of Process Hammer Process Mastery November 25-26, 2013 The Colonnade Hotel Boston, MA
q Leading Business Transformation Hammer Process Mastery December 3-5, 2013 The Colonnade Hotel Boston, MA
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