American Medical Association

National Leadership Development Conference

Fontainebleau Hilton03.26.00

Hen scratches @ 37,000 feet …

Microsoft = R.O.W.

Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99

Microsoft = R.O.W. (II)

Microsoft > GM + Ford Boeing + Lockheed

Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg

+ McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker OatsSource: Yastrow Marketing (through 11-23-99)

No Wiggle Room!

“Incrementalism is innovation’s worst

enemy.” Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of the

Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

64/24

Goal?

“It means nothing less than the total

reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPointFord + Yahoo!Ford + Oracle

Ford + HP/MCIWorldcomEtc.Etc.

TP2000: A broken Record

GE Power SystemsAnheuser Busch

FitLinxxYellow Freight

Time Inc.Etc.

WebTotal ReinventionConsumer Control

SpeedTerror/

OpportunityBrand Power/

Communication Imperative

“There’s going to be a fundamental change in the

global economy unlike anything we have had since

the cavemen began bartering.”

Arnold Baker, Chief Economist, Sandia National Laboratories

“Medicine looks likely to change more in the next 20 years than it has in

the last 200.”

British Medical Journal (11-11-99)

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

Tom Friedman on Bob Rubin*

No phone on his desk.

Why?

No one to call!

*NGA address/CSPAN/02-27-00

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

C.E.O. to

C.D.O.

“It used to be that the big

ate the small. Now the fast eat the slow.”Geoff Yang, IVP (Institutional

Venture Partners)

E.g.: Craig Venter/Celera Genomics

BW: “human brain has only a short time left as the smartest thing on earth”/ “subjugate

humanity by 2050”

Health Forum Journal: “In one generation or less, every element of health care, every assumption, will be changed or gone.”

Dr. George Poste, SKB: 500 molecular targets in ’95 to 70,000 in ’99/ 35 compounds

per year to 2M

“Researchers say they have found a way to mate human cells with

circuitry in a ‘bionic chip” … The tiny device – smaller and thinner

than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”

AP/AOL/02-00

And Now the Equivalent …

White Collar Revolution!

“The coefficient of friction associated with the grunge

of business is amazing!”

Michael Schrage

RR on Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon/WebMD

* ’twixt docs, patients and providers; $300B in waste (?); source: Michael Lewis,

The New New Thing

[ Incidentally …

CEO Jeff ArnoldAge: 30

First Start-up: Age 24]

Hewitt & HMO e-bids!

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

“E-business is the final nail in the coffin

for bureaucracy at GE.”

Jack Welch/GE Annual Report 2000

The Character of the Web, per The Cluetrain Manifesto …

HyperlinkedDecentralized

HypertimeOpen, direct access

Rich dataBroken [no one owns it or controls it]

Borderless

Jargon Bath!

Bureaucracy free …Systemically integrated …

Internet intense …Knowledge based …

Time and location free …“Instantly” responsive …

Customer centric …Mass customization enabled.

Translation …

Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain

tightly wired/ friction freeInternet intense = Do it all via the Web

Knowledge based = Open accessTime and location free = Whenever, wherever

“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product

and service rapidly tailored to client requirements

“Our business needs a massive transfusion of talent. And talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.” David Ogilvy

“The boundaries for acceptable weirdness have

dramatically expanded.”

Michael Schrage

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

$35,000,000. = ???

Dell’s Web sales … daily

2X = 100 days (Internet traffic)

2X = 9 months (network capacity)

Source: Red Herring (1-00)

I-24 to 1-28: BizRate.com Online Shopping Index [Consumer Goods]

52 Weeks: +622%

Source: The Industry Standard/02-00

Time to 50M Users

Radio … 38 years TV … 13 years PC … 16 years

Internet … 4 years

Source: Business 2.0 [01-00]

Tomorrow Today: Cisco!

$7B of $10BSave $500M (service and tech

support)

C.Sat e >> C.Sat HCustomer Engineer Chat Rooms ($1B?)

Community rules!

SoftWatch (MS)

“Manage relationships across the healthcare continuum”/ Amir Kishon

Establish e-relationships with customers/retain customers/collect data

Patients record info + receive feedback/ Online access to nurses

Community with others with MS

Etc.

Source: Start-Up

B2B = No.1

CarStation (auto-body shops), ChemConnect (chemicals),

Collabria (commercial printing), DigitalThink (corporate training), E-Steel (steel), Medibuy (medical

supplies), Portera (knowledge workers), Etc., Etc., Etc., Etc.

Welcome to

D.I.Y. Nation!“Changes in business processes will emphasize self service. Your costs as

a business go down and

perceived service goes up because customers are conducting it

themselves.” Ray Lane, Oracle

Psych 101: Strongest Force on Earth?

My need to be in perceived control of

my universe!

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

“IT enables total transparency. People with

access to relevant information are beginning to challenge any type of

authority. The stupid, loyal and humble customer, employee, patient

or citizen is dead.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Patricia Seybold’s “Basics”:The E-Customer Bill of Rights

Don’t waste my time!Remember who I am!

Make it easy for me to order and procure service!

Customize your products and services for me!

Source: customers.com

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.” Jack Welch

There are 2 Kinds of …

Defense*

vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,

finances, education.

Source: Business Week (11-99)

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated

and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care $

$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Marketing to Women: Help Them Save Time!

80% … work86% … cook

58% … run errands with kids38% … take child to school

21% … go to the gym21% … take outside classes

74/55

“At each stage of their lives, the needs and desires of the baby

boomers have become the dominant concerns of American business and popular culture. If you can anticipate

the movement of the baby-boom generation’s life-span migration, you

can see the future.”Ken Dychtwald, Age Wave

Aging/“Elderly”

2X growth rate$$$$$$$$$$$$

“I’m in charge!”“Experiences” vs. Products

Design revolution!

Good source: Ken Dychtwald, Age Wave

Leadership: Ann Richards’ Dogma

Show up!

Know your message!

PUT YOURSELF AT RISK!

“If you ask me what I have come to do in this world, I

who am an artist, I will reply, I am here to live my

life out loud.”Emile Zola

“I’d rather regret the things I have done than the things I have not.”

Lucille Ball

Foot-in-Mouth Moment!

Dr. PeabodyDr. Bill[ingsly]

Dr. HahnDick Bartlett

Rich LanzerottiMark Novotny

Are You Fighting Yesterday’s War?Docs don’t know it all.

There are a lotta bad medical decisions. “Hospitals” kill far too many people.

(Bad decisions, bad execution.)

Systemic waste is stratospheric. (Still.)

Patients are getting (much) smarter.Patients have had it with HMOs. (And Docs with the

“white-coat syndrome.”) You are not smarter than I am. (I am your partner.)

You are not busier than I am. (!!!!!)Patients want more data. (And can readily get it.)

Boomers will control their lives. Period. Medicine is about to be overwhelmed with a tsunami!

“Is it good medicine?”

WHO KNOWS??!!

Marketing “gurus” see all business problems as “marketing issues”!

Etc.

IF YOU [TOTALLY] TRUST YOUR LAWYER/

MANAGEMENT GURU/ARCHITECT …

YOU ARE … A PERFECT IDIOT.

1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”

YES, NURSE. ME GOOD PUPPY DOG.

1995: “HMO will take care of you.”

BULLSHIT.

2005: “I will take care of me. I’d like your expert help.” [P.S.: “HEY, DOC,THE VIAGRA,

ETC. I ORDERED ON LINE IS GREAT.”]

YES … patients WILL make mistakes … just like Chevrolet owners!

Patient-centric* Health Care

Wellness (Fix to prevent.)

Partnership (“Tour guide” model.)

RESPECT! (Mutual.)

WOMEN RULE!

*Not: HMO-centric, Employer-centric, Insurer-centric, Doc-centric

Partnership

ArchitectLawyer

Accountant***

Doctor (??)

AMA: Push “Patient

Partnership” Model????

Present: Nostalgia

Absent: Tomorrow/ Cool

How sweet it is!

F.Y.I.: Slides are available in Power Point at …

www.tompeters.com