Presentation to Leadership Team at Vanderbilt University Medical Center on Transformational Leadership. A Discussion of Disruption in the Market, Becoming a Leader in Creating Change, and Tools for Self Improvement as a Leader.

1. TRANSFORMATIONAL LEADERSHIP
Healthcare’s New Business Model

2. The Law of Disruption
While
People
Change
Incrementally,
Technology
Improves
EXPONENTIALLY

3. Mobile, Social, Camera, Sensors, Cloud and Data
$36
Trillion
in
stock
market
value
is
up
for
RE-IMAGINATION

4. 1 | WORK ON THE BUSINESS
The most successful transformational leaders I've known spend time
each week working “On The Business.”
TRANSFORMATIONAL LEADERSHIP

5. THE BUSINESS JOURNEY
THERE’S NO STRAIGHT LINE FROM “A” TO “B”
Leadership
Planning & Strategy
Customer & Market Focus
Analytics
People Focus
Process Knowledge
Business Information
Goal

6. Business Process:
Working IN your business
Business Capability:
Working ON your business
Today’s Reality
Tomorrow’s Opportunity

7. You can spend all day, all week, all year
on the business in survival or maintenance mode
But growth happens when you work on this!
Business
Process
Business
Capability

8. THE SECRET | FOCUS ON THE BUSINESS MODEL
Make fundamental adjustments that enhance your competitive
advantages. New entrants often offer a “better mouse-
trap” – superior benefits and lower costs.
A Business Model is simply a representation of how an
organization makes money.

9. The Business Model has Become a Given
Our Professional Lives Are Simply “to do” Lists

10. There are 7 core business model types
from which every business model
is created.
BUSINESS MODELS | 7 CORE TYPES

11. WHO
WHAT
HOW
is your
customer?
do you offer
your customers?
do you
do this?
Markets
Customer Segments
Individual Customers
Products & Services
Solutions
Experiences
Create Value
Deliver Value
Capture Value
Value Proposition
What Is A Business Model?
The Essence & Main Components

12. Who is your
customer?
What is your
value
proposition?
How are you
creating and
delivering your
offer?
Source: Marc Sniukas
Describe Your Business Model
Describe Your Business by Answering These 3 Questions

13. Most of Our Strategies are “off” by 10 Degrees
… so are most of our competitors
Closing the Gap Defines Success

14. 2 | DIFFERENTIATE
FIVE TRAITS OF TRANSFORMATIONAL LEADERS
Differentiate yourself as a leader by
combining 3 puzzle pieces:
Your
Assets
Your
Aspirations
The
Market
Realities

15. Delivery
Skills
Emotional
Intelligence
Discovery
Skills
1. Insight:
Compelling vision of the
future that attracts others
2. Expertise:
Ability to show others how
to get things done
3. Relationships:
Capable people actually
choose to follow you
TRANSFORMATIONAL
LEADERSHIP

16. 37%
Only of Individuals Think their Organization is Innovative
WHERE IS THE INNOVATION?

17. Yet
79%
work environments.
would
feel
motivated
by
innovative

18. WHAT MOST OF OUR STAFF AND CUSTOMERS
THINK WE ARE TRYING TO BUILD

19. WHAT MOST OF OUR CUSTOMERS WANT

21. • WE DO NOT LEAD an organization, department or group;
and your people do not follow strategic plans, fancy goals
or year-end reports | THEY FOLLOW A PERSON
• Often, our understanding id diluted with operational plans,
goal setting, revenue and sales forecasting, cash flow, HR,
compliance and the company’s bottom line.
• How You Influence Others is the Most Important
Part of Leadership
You Are Messing with Peoples’ Lives!

22. Individuals are hard-wired to belong
To groups and communities
That acknowledge their existence, accept them
And help them define their identity.
Boy
Scouts
or
Gangs,
It’s
all
about
BELONGING

23. • How does the plan build Awareness?
• How do we create Interest?
• What are the drivers of team Desire?
• How do we cause Adoption | Buy In?
BUILDING AIDA | AFFECTING CHANGE

24. COGNITIVE STAGE | THINK
Awareness | The cognitive component deals with cognition,
or knowledge; it is the power of knowing, perceiving or
conceiving ideas about the product. It is dealing with the
basic information that our team needs to know.
Our team must to be exposed to the plan – and understand
the WHY before we discuss HOW and WHAT.

25. AFFECTIVE STAGE | FEEL
Interest & Desire | The effective component deals with the
affections/emotions.
For example, feelings of likes or dislike towards the plan. It is
at this stage that the team will emotionally connect and
engage or they will disconnect and disengage.

26. BEHAVIOR STAGE | DO
Action | This is the stage when the team, after having the
knowledge and developing the liking or disliking towards the
plan (and emotional buy in), will ultimately lead to action and
execution.

27. LESSONS LEARNED
IN LEADERSHIP
Great Communicators Tell 3 Stories:"
1. Tell a compelling story about yourself..
2. Tell a compelling story about the organization..
3. Stories of your people & how the work they do is an
essential part of the team.

28. 3 | NETWORK & COLLABORATE
A Leader must have a broader view that goes outside the healthcare
business. We get that broader perspective out there in our networks.
In those networks you find information to bring it back into the business.
7 BUSINESS GROWTH STRATEGIES
FIVE TRAITS OF TRANSFORMATIONAL LEADERS

29. EMPLOYERS
SEARCH
PROVIDERS
SERVICE VENDORS
HEALTH PLANS
APP MAKERS
Customers
AROUND THE CONSUMER
HEALTHCARE STAKEHOLDERS ARE ALIGNING
You are competing with
every other type of
healthcare entity for “shelf
space” with the consumer.

30. WHAT IS YOUR BRAND?
…what do people say about you when you leave the room

31. MY DEVELOPMENT
The 500 People That
Connect Me to Anyone in the World
Opportunity Development
The 50 People That
Are Key to Professional Growth
Professional Development
The 5 People That
Most Influence Who I Become
Personal Development
1.
2.
3.
4.
5.

32. 4 | THINK VALUE
Challenge traditional thinking in healthcare – focus on the customer,
whose wants and needs change.
7 BUSINESS GROWTH STRATEGIES
FIVE TRAITS OF TRANSFORMATIONAL LEADERS

33. Competitive Advantage | our ability to outperform our competitors:
Valuable, Rare, Sustainable, Hard to Imitate.
THE HALO
VALUE CREATION FOR OUR CUSTOMERS
V = Value to consumer
P = Price
C = Costs of production
C
P – C = Margin
V – P = Halo

34. V – P = Halo
C
Competitive Advantage | our ability to outperform our competitors:
Valuable, Rare, Sustainable, Hard to Imitate.
THE HALO
VALUE CREATION FOR OUR CUSTOMERS
V = Value to consumer
P = Price
C = Costs of production
P – C = Margin

35. Source: The New Multi-Screen World Study | Google, August 2013
CONSUMER VALUE IS OFTEN INFERRED IN CONTEXT OF
TIME AND ACCESSIBILITY

36. 5 | ENGAGE CONSUMERS
Healthcare’s consumer is increasingly mobile and lives online. Consider a
C2B Model – using customer data to engage and build loyalty.
It will take more than a website to thrive in the New Health Economy.
7 BUSINESS GROWTH STRATEGIES
FIVE TRAITS OF TRANSFORMATIONAL LEADERS

37. MULTI-CHANNEL LIFE
MOST CONSUMERS HAVE A
Customers
Use Consumer Data To:
• Refine business
models
• Enhance consumer
experience
• Earn greater loyalty

38. LOOK FOR TREND
Challenge traditional thinking in healthcare – focus
on the customer, whose wants and needs change.
9 BUSINESS GROWTH STRATEGIES

39. The next “New Thing” happens because we see
in our peripheral vision emerging opportunities…
You Can Almost Feel the Change

40. THE NEXT NEW THING | Begins with an Idea

41. GET THE IDEA
OUT OF YOUR HEAD!
…and into a Picture!

42. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
Company Name
Version Number
Date
THE IDEA FRAME | WHAT IF

43. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
THE PRODUCT QUESTIONS
• What is it?
• Who has one like it?
• Why now?
• Why me?
Company Name
Version Number
Date

44. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
THE CUSTOMER QUESTIONS
• Who are early adopters?
• What is their pain?
• How do they solve it today?
• What brands do they buy?
• What causes them to choose us?
Company Name
Version Number
Date

45. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
THE DISTRIBUTION QUESTIONS
• How do customers hear of us?
• How do they buy?
• Do we make it easy to buy?
• At what price will they buy?
Company Name
Version Number
Date

46. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
Why do early adopters like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
THE INTIMACY QUESTIONS
• Why do early adopters like us?
• How are we engaging them?
• Will they become ambassadors?
Company Name
Version Number
Date

47. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?"
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
KEY INGREDIENTS
• What are the core elements of
the product or service that are
unique to our team?
• What are the critical ingredients in
my design that I must own?
Company Name
Version Number
Date

48. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?"
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
PARTNERS
• Who are the key partners who
will provide outsource and supply
chain services?
• What are the brands that will help
us look larger than life?
Company Name
Version Number
Date

49. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
What is the perfect mix of the core elements I must
do? What partnership | outsource activities that meet
the customers needs without being overly
complicated?
8. COST MODEL
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?"
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
ESSENTIAL RECIPE
• What is the perfect mix of the
core elements I must do?
• What partnership activities that
meet the the customers needs
without being overly
complicated?
Company Name
Version Number
Date

50. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
What is the perfect mix of the core elements I must
do? What partnership | outsource activities that meet
the customers needs without being overly
complicated?
8. COST MODEL
Do items (5-7) create an affordable cost structure?
Can I create a competitive market margin for the
product or service at the price I can charge? What is
my best guess of the margin?
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?"
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
MY COST MODEL
• Do items 5-7 create an affordable
cost structure?
• Can I create a competitive margin?
• What is my best guess of the
margin?
Company Name
Version Number
Date

51. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
What is the perfect mix of the core elements I must do
and the partnership | outsource activities that meet the
customers needs without being overly complicated
nor costly?
8. COST MODEL
9. REVENUE MODEL
What can I charge for the product or service? Based
upon my cost model, is the business sustainable?
Does it attract investors? Can it scale and grow?
How do I know?
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?"
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Do items (5-7) create an affordable cost structure?
Can I create a competitive market margin for the
product or service at the price I can charge? What is
my best guess of the margin?
MY REVENUE MODEL
• What can I charge for the product
or service?
• Based upon my cost model, is the
business sustainable?
• Does it attract investors?
• Can it scale and grow?
• How do I know?
Company Name
Version Number
Date

52. LEADERSHIP DECISION MAKING
REQUIRES AN ENTREPRENEURIAL MINDSET

53. F
Frame the
Opportunity or
Issue
O
Organize the
Information you
Have
C
Clarify What You Know and Do Not Know
U
Understand Your Options.
Develop a “Plan A” and a “Plan B”
Validation of Options:
• ROI (Return on Investment)
• Value
• Projected Growth in Revenue, Margin, Customer Volume
S
Select Your Best Option.
Execute it Well.
Does your solution Address the Client’s or
Organization’s “Pain”?
Does it match the Company’s Strategic Objective (s)?
Is it a realistic?
Is it affordable?
Is it an executable solution?
PDCA
Instructio nal
Cycle
PLA N
A C T
DO
CHECK
• Data
Disaggregation
• Calendar
Development
• Direct
Instructional
Focus
• Tutorials
• Enrichment
• Assessment
• Maintenance
• Monitoring
FOCUS MODEL | DECISION MAKING

54. We Become
ü What we Eat | Both body and brain health
ü What we Read | Reading changes brain structure & performance
ü The 5 People | With whom we spend most of our time
Knowing this, I use the following tool to map out my on
personal development plan – to ensure I have an active role in
the person I am becoming…

55. TO-BE
SITUATION
Ÿ Performance
Ÿ Skills
Ÿ Perceptions
A Transformation Map is a simple but powerful framework
against which to chart our progress
AS-IS
SITUATION
Ÿ Performance
Ÿ Skills
Ÿ Perceptions
TO
Performance
Q3 Q4Q2Q1
FROM

56. Personal
Life
My
Well
Being
My
Brand
|
Iden5ty
Network
|People
Skill
|
Knowledge
Experiences
My Goal:
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

57. CONTACT INFORMATION
Dr. Michael R. Burcham
c. 615.400.7662
e.
michael@michaelburcham.com
w.
www.michaelburcham.com
t. www.twitter.com/michaelrburcham
l. www.linkedin.com/in/michaelburcham
Handouts Available: www.slideshare.net/michaelburcham