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Customer Intimacy, Meet Operational Excellence

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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?

Customer Intimacy, Meet Operational Excellence

  1. 1. Customer Intimacy, Meet Operational Excellence Brad Power FCB Partners Webinar October 2, 2013
  2. 2. 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
  3. 3. 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 XG G G Performance Gap
  4. 4. 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
  5. 5. 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 XG G G Performance Advantage Opportunity
  6. 6. 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
  7. 7. Can You Have Both Customer Intimacy and Operational Excellence? 6 Standards for consistency, reliability, and low cost Autonomy to make customer-specific decisions
  8. 8. 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 7

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