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MAX MCKEOWN
FUTURE
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building." FOR
“If you ain’t got
culture, you ain’t
got shit.”
         Herb Kelleher, Chairman, Southwest Airlines
“We’re willing to be
misunderstood for
a long time.”  Jeff Bezos, Amazon
FUTURE
Max Mckeown PhD
“Innovation
is new ideas
    made
   useful.”
what if?
fiasco
STABILITY IS A
DANGEROUS
ILLUSION
STUPID
SURVIVES UNTIL
SMART
SUCCEEDS
LEARNING FAST
BETTER THAN
FAILING FAST
PLAY YOUR
OWN
GAME
EMBRACE
UNACCEPTABLE
WISDOM
PLAN B
MATTERS
MOST
F*** WITH
THE RULES
GET A
KICK-ASS
PARTNER
THINK
BETTER
TOGETHER
ALL SUCCESS IS
ADAPTATION
FUTURE
FREE RADICALS
Dissolving the contradictions




Law of Increasing Ideality
Maverick                     Soldier

 Commitment to
Strategy/Purpose




                    Rebel                       Adapter


                              Commitment to
                              Structure/Rules
Inside presentation   max mc keown

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Inside presentation max mc keown

Editor's Notes

  1. The Missing Phase 2 (How to?)Story of underpants gnomes (South Park)Gnomes have a three phase plan1. Collect underpants2. 3. Make a profit.There is no phase 2 because they haven’t thought through their plan.This is why plans often don’t succeed.How do you imagine your current plan with lead to achieving your objectives?What is missing from your Phase 2?© Mckeown 1999-2011 – All Rights Reserved
  2. Yesterday I went to a speech given by the famous founder of Southwest Airlines, Herb Kelleher. As always, watching Herb speak was a great time!I have great admiration for this man and his unconventional ways of running things. His willingness to be different and excitingeventually earned the envy of all other airlines.“Professor” Kelleher speaking:The speech started off with the actual professor of the class (Who is a Southwest Airlines board member) showing “Malice in Dallas”which was a spoof video about a Southwest Airline lawsuit where an aviation company threatened to sue Southwest for using the motto“Just Plane Smart.” Herb Kelleher challenged the CEO of the company to an arm wrestling match to settle the issue (seriously). The video ended up being shown world-wide and is sometimes billed as the greatest publicity stunt ever. The video was absolutely hilarious!! It really showed Mr. Kelleher’s funny side, wish I could find it on YouTube or Google Video.The entire time Mr. Kelleher spoke mainly about company culture….constantly instilling into everyone in the room just how important people are, and how if you take care of your people, they will take care of you. I’ve heard the same thing from other CEO’s, but he literally talked about it the WHOLE time…..and he’s obviously quite serious that his #1 priority is the people within Southwest. Some quotes from his mouth were:“If you ain’t got culture, you ain’t got shit.”“Competitors can buy tangible assets, but they can’t buy culture.”He also just like last time lit up a cigarette soon after he started speaking. The man is notorious for loving cigarettes, Wild Turkey Whiskey and candy bars. So the day before I bought some props from the liquor store to use in the picture I would inevitably take with him!It was actually the first pack of cigarettes I ever bought. In the Q&A session he answered questions pertaining to his many law battles all the way up to the Supreme Court (half the room was law students) and questions about how Southwest became the envy of the entire airline industry….and has become the only one to be profitable for so many years in a row.One thing I really admire about him is his personality. The second he entered he room, he turned it from dull and quite to loud and FUN. He obviously loves having a good time, and you can see that reflected in the Southwest staff. A great example of leadership by example.At the end of the speech I got out my Wild Turkey whiskey and cigarettes and took a great picture of me and Herb. I still get a kick out of this picture!Then after the speech we both went to Cancun and ripped it up!!Ok, that last part was obviously fake….but the speech was fun anyway! The guy is absolutely hilarious, smokes like a chimney and drinks like a sailor….but is one of the most famous CEO’s of all time because of his willingness to put people first and do things different.
  3. Herb KelleherChairman, Southwest AirlinesThe role of the appropriate CEO is, in my opinion, most important in both creating and guiding the brand and, to this end, I met about once per month with our Marketing Department, advertising agency, and Public Relations Department in creative sessions.The objectives of my participation were manifold:1. To license participants to be creative, rather than mechanistic and bureaucratic in approach;2. To license participants to be daring, rather than humdrum in approach;3. To help ensure that our advertising and PR content were congruent with our strategic and operational intentions, our corporate values and Culture, and our ethical standards;4. To help ensure that we were paying contextual attention to changes in societal mores, interests, and trends;5. To help ensure that our advertising and PR resources were being spent and expended in a manner appropriate to our allocation of aircraft seats; impending competitive confrontations; and potential service opportunities;6. To help ensure that there was continuity and consistency to our advertising and PR over a span of years;7. To help ensure that our advertising and PR had the potential for a substantive and lasting impact, rather than just an insubstantial, ephemeral presence;8. To help ensure that the creative process was both uncontrained and a barrel of fun.Caveat: I wrote "appropriate" CEO above because some CEOs, regardless of their merits in other areas, might deaden, rather than enliven, creative sessions.
  4. Angry ManPopular online characterThe idea is to complete what the angry man is saying“Y U NO” + “??????”Or “Why You Don’t” Or “PourquoiTu Ne Peux Pas?”What would you say to leaders?What would they say to you?What would patients say to doctors?What would doctors say to pharma?Best done by getting people to think through examples and then saying them outloud.Eventually (if possible) get people to shout!© Mckeown 1999-2011 – All Rights Reserved
  5. $2.5 billion industry – years unifying the system – serves 10,000 routes. Sales tripled last year adding 4.2 million riders. PhanindaSama missed bus and then saw opportunity.
  6. Global average is 14 per 10,000. Cuba is 67 per 10,000. France is 35 per 10,000. UK is 27 per 10,000 (43rd) India has 6 per 10,000 (97th).NarayanaHrudayalaya is Walmart meets Mother Teresa.The organization, a complex of health centers based in southern India (narayanahrudayalaya means "God’s compassionate home" in Sanskrit), offers low-cost, high-quality specialty care in a largely impoverished country of 1.2 billion people. By thinking differently about everything from the unusually high number of patients it treats to the millions for whom it provides insurance--and by thinking a lot like the world’s largest retailer--the hospital group is able to continually wring out costs. NarayanaHrudayalaya’s operations, for instance, include the world’s largest and most prolific cardiac hospital, where the average open-heart surgery runs less than $2,000, a third or less what it costs elsewhere in India and a fraction of what it costs in the U.S.NarayanaHrudayalaya’s origins date back to 2001, when it built its massive cardiac center on the outskirts of Bangalore. But it has expanded since then into what founder Dr. Devi Shetty calls a "health city," a series of larger-than-usual centers specializing in eye, trauma, and cancer care on 35 sprawling acres. What’s more, NarayanaHrudayalaya now manages or owns hospitals in 14 other Indian cities. Its telemedicine practice, in which each surgeon has Skype on his laptop, extends its reach even further, to 100 facilities throughout the country and more than 50 in Africa. The newest initiative, dispersing 5,000 dialysis machines, will make the company the country’s largest kidney-care provider.Expanding access is paired with a relentless focus on efficiency. Typically, says Shetty, private hospitals in India focus on patients who can easily afford treatment. "We did it the other way around," he says. "This hospital is for poor people, but we also treat some rich people. So we’re mentally geared for people who are shabbily dressed and have trouble paying. We don’t look at them as outsiders. We look at them as customers." NarayanaHrudayalaya’s flagship hospital has 3,000 beds, more than 20 times as many as the average American hospital. The company (mostly family owned, with JPMorgan among a handful of investors) negotiates for better prices and buys directly from manufacturers, cutting out distributors. Starting with cardiac care, an equipment-intensive specialty, made it easier for the hospital group to expand into other areas that require the same infrastructure. "Cardiac surgery is like a moving train," Shetty says. "We’re just adding other cars."The company targets even routine inefficiencies. A beefed-up support staff handles the onerous paperwork for surgeons, freeing Shetty and his colleagues to perform more operations than a typical cardiac surgeon would, about a dozen a week. And because they work on a fixed salary instead of per operation, the cost to the hospital drops when the number of procedures increases. "More than 100 years after the first heart surgery, less than 10% of the world’s population can afford it," says Shetty. "That’s why we concentrate on the mechanics of delivery. It’s the Walmart approach."In addition to cost-cutting, NarayanaHrudayalaya finds creative ways to make the economics work. The company started a micro-insurance program backed by the government that enables 3 million farmers to have coverage for as little as 22 cents a month in premiums. Patients who pay discounted rates are in effect compensated by those who pay full price or opt for extra perks. Typically, the latter group includes foreigners for whom a $7,000 heart operation, access to an experienced specialist, and a deluxe private room is a relative bargain. The balance of patients is, in fact, crucial. Every day, NarayanaHrudayalaya’s surgeons receive a P&L statement of the previous day that describes their operations and the various levels of reimbursement. The data allow them to add more full payers, if necessary (unless urgent health issues dictate otherwise). "When you look at financials at the end of the month, you’re doing a postmortem," says Dr.AshutoshRaghuvanshi, NarayanaHrudayalaya’s CEO. "When you look at it daily, you can do something."And doing something--doing more, actually--is the point. By 2017, Shetty, 58, envisions expanding from 5,000 hospital beds throughout India to 30,000. He could barely have imagined such an empire 15 years ago. Before becoming one of India’s best-known health-care entrepreneurs, Shetty was its best-known heart surgeon. He was interrupted in surgery one day during the 1990s by a request to make a house call. "I said, 'I don’t make home visits,' " Shetty says, "and the caller said, 'If you see this patient, the experience may transform your life.' " Which is exactly what happened. The request was from Mother Teresa. Inspired by the iconic nun’s work with the poor, he then set out to create a hospital to deliver care based on need, not wealth. No doubt she would be pleased by the results. "One lesson she taught me," he says, quoting a saying he keeps framed in his office, "is 'Hands that sew are holier than lips that pray.' "
  7. English: A charitable Trust started in 1890, The NMTBSA or commonly known as The Bombay Dabawalla has achieved 6 Sigma.They collect the Lunch Tiffin from home and deliver at the work place in a record time. Approximately 400,000 transactions are done per day with a work force of approximately 5000 employees.. The Error rate is 1 in 16 million transactions. (6 Sigma performance requires 99.999999 % efficiency) The charge ? Rs 300/- per month ($6 per month) This rate is standard for any distance or weight. Their latest marketing strategy is Marketing pamphlets in the “Dabba”By the way NMTBSA stands for Nutan Mumbai Tiffin Box Supplier’s Association.