OUTSMARTING THE COMPETITION or… There’s Not Much New In Management, But There Is A Lot New In Business Jim Champy

Where Smart Companies Find Opportunity Compete by seeing what others don’t. Compete by thinking outside the bubble. Compete by using all you know. Compete by changing your frame of reference. Compete by doing everything yourself. Compete by tapping the success of others. Compete by creating order out of chaos. Compete by simplifying complexity.

Compete by seeing what others don’t.

Compete by thinking outside the bubble.

Compete by using all you know.

Compete by changing your frame of reference.

Compete by doing everything yourself.

Compete by tapping the success of others.

Compete by creating order out of chaos.

Compete by simplifying complexity.

The Flavor or Leadership in Smart Companies Leaders are inspired and engage others in their inspiration. The engagement goes deep into the organization. (Under Armour and Smith & Wesson) Leaders are open, transparent, and vulnerable – prepared to be proven wrong and ready to change course. (Sonicbids) Leaders sense no risk – there is a “just-do-it” sensibility.

Leaders are inspired and engage others in their inspiration. The engagement goes deep into the organization. (Under Armour and Smith & Wesson)

Leaders are open, transparent, and vulnerable – prepared to be proven wrong and ready to change course. (Sonicbids)

Leaders sense no risk – there is a “just-do-it” sensibility.

What it does: Provides access to a global community of over 120,000 performers. What it saw: A global love for music, but an inability to globally access performers; a “cottage” industry that could be transformed. How it operates: Performers register with their portfolios Customers subscribe to the service Services are booked over the Internet

What it does: Provides access to a global community of over 120,000 performers.

What it saw: A global love for music, but an inability to globally access performers; a “cottage” industry that could be transformed.

How it operates:

Performers register with their portfolios

Customers subscribe to the service

Services are booked over the Internet

What it does: Provides non-critical, clinical care from a storefront facility. What it saw: Most healthcare providers have focused on diagnosis and treatment. Minute Clinic’s founders saw the opportunity to change how healthcare is delivered. How it operates: A retailer mentality Staffed by nurse practitioners Enabled by information technology Open 7 days a week Patients are seen in ten to fifteen minutes Complements the healthcare system

What it does: Provides non-critical, clinical care from a storefront facility.

What it saw: Most healthcare providers have focused on diagnosis and treatment. Minute Clinic’s founders saw the opportunity to change how healthcare is delivered.

How it operates:

A retailer mentality

Staffed by nurse practitioners

Enabled by information technology

Open 7 days a week

Patients are seen in ten to fifteen minutes

Complements the healthcare system

What it does: Manufactures pistols and revolvers. What it saw: The value of its brand and the need to return to operating basics. How it operates: Utilizes continuous improvement techniques Adopts state-of-the art manufacturing processes Maintains a strong focus on product quality Builds brand loyalty Leverages its brand awareness to expand product segments

What it does: Manufactures pistols and revolvers.

What it saw: The value of its brand and the need to return to operating basics.

How it operates:

Utilizes continuous improvement techniques

Adopts state-of-the art manufacturing processes

Maintains a strong focus on product quality

Builds brand loyalty

Leverages its brand awareness to expand product segments

What it does: Publishes, packages, and distributes photographs in various forms. Growing at 50% a year. What it saw: Shutterfly’s competitors see themselves as photo finishers. Shutterfly thinks of itself as a social expression and personal publishing service. How it operates: Provides dozens of ways for customers to use and share their photos Easy-to-use Internet site Superior customer service Vertically integrated capability

What it does: Publishes, packages, and distributes photographs in various forms. Growing at 50% a year.

What it saw: Shutterfly’s competitors see themselves as photo finishers. Shutterfly thinks of itself as a social expression and personal publishing service.

How it operates:

Provides dozens of ways for customers to use and share their photos

Easy-to-use Internet site

Superior customer service

Vertically integrated capability

What it does: Designs and manufactures handling equipment for high- risk environments (e.g., nuclear waste). What it saw: An underserved market that attracted little interest. How it operates: A fully integrated manufacturing capability A willingness to solve tough delivery problems A commitment to the safety of its customers (e.g., cleaning oil tanks) Zero employee attrition!!

What it does: Designs and manufactures handling equipment for high- risk environments (e.g., nuclear waste).

What it saw: An underserved market that attracted little interest.

How it operates:

A fully integrated manufacturing capability

A willingness to solve tough delivery problems

A commitment to the safety of its customers (e.g., cleaning oil tanks)

Zero employee attrition!!

What it does: Designs and manufactures decorations to fill the holes in Crocs. What it saw: A fashion phenomena in which people could actively participate, customize, and enjoy. How it operates: Constant flow of new releases 1,100 products now available Expanded to other “charms”

What it does: Designs and manufactures decorations to fill the holes in Crocs.

What it saw: A fashion phenomena in which people could actively participate, customize, and enjoy.

How it operates:

Constant flow of new releases

1,100 products now available

Expanded to other “charms”

What is does: Provides access to 8 million parts and accessories for more than 560 brands covering consumer electronics, major appliances, wireless devices, and outdoor power equipment. What it saw: The complexity of the electronics industry and the futility of finding a replacement part. How it operates: Rationalized the cataloging process in a chaotic market Provides services through major retail channels – and directly to consumers An internet-based service, complemented by a competent, high-touch service center

What is does: Provides access to 8 million parts and accessories for more than 560 brands covering consumer electronics, major appliances, wireless devices, and outdoor power equipment.

What it saw: The complexity of the electronics industry and the futility of finding a replacement part.

How it operates:

Rationalized the cataloging process in a chaotic market

Provides services through major retail channels – and directly to consumers

An internet-based service, complemented by a competent, high-touch service center

What it does: Provides customized, pre-packaged supplements and medications for horses. What it saw: Most barn operations fail to manage the complexity of providing a horse with multiple supplements and medications on a daily basis. The potency of supplements and medications were also being reduced. How it operates: Delivers a 30-day supply of supplements and medications customized for each horse Substances are contained in a single plastic container for each day, clearly marked with the horse’s name Works with suppliers to achieve efficiencies and bulk discounts Provides a high-level of customer service

What it does: Provides customized, pre-packaged supplements and medications for horses.

What it saw: Most barn operations fail to manage the complexity of providing a horse with multiple supplements and medications on a daily basis. The potency of supplements and medications were also being reduced.

How it operates:

Delivers a 30-day supply of supplements and medications customized for each horse

Substances are contained in a single plastic container for each day, clearly marked with the horse’s name

Works with suppliers to achieve efficiencies and bulk discounts

Provides a high-level of customer service

What I liked about… Sonicbids : Inventing a new business to tap a 13 billion dollar market / organizes the marketplace Minute Clinic : Challenges an industry’s sacred cows Smith & Wesson : The application of management basics and fundamental skills / the inspiration of a brand revival / engagement of all it’s people Shutterfly : A simple shift in lense / perspective opens broad opportunity S.A. Robotics : A tightly integrated design and delivery process creates higher value for the customer

Sonicbids : Inventing a new business to tap a 13 billion dollar market / organizes the marketplace

Minute Clinic : Challenges an industry’s sacred cows

Smith & Wesson : The application of management basics and fundamental skills / the inspiration of a brand revival / engagement of all it’s people

Shutterfly : A simple shift in lense / perspective opens broad opportunity

S.A. Robotics : A tightly integrated design and delivery process creates higher value for the customer

What I liked about… (cont’d) Jibbitz : A quirky idea is elevated to a real business Partsearch : The ambition to solve a real hairy problem and the persistence to do it Smartpak : How a personal (but shared need) is turned into a business (There is no single business formula!)

Jibbitz : A quirky idea is elevated to a real business

Partsearch : The ambition to solve a real hairy problem and the persistence to do it

Smartpak : How a personal (but shared need) is turned into a business

(There is no single business formula!)

How Smart Companies Behave Ambition matters Intuition reigns Focus prevails Customers rule Calm enables Innovation lives Culture drives Everyone plays

Ambition matters

Intuition reigns

Focus prevails

Customers rule

Calm enables

Innovation lives

Culture drives

Everyone plays

From Reengineering to OUTSMART Next to ENGAGE , - Under Armour - Honest Tea - Big Green Egg INSPIRE , and DELIVER

Next to ENGAGE ,

- Under Armour

- Honest Tea

- Big Green Egg

INSPIRE ,

and DELIVER