Daniel Morris, Founder Success Leaves Clues -...
Transcript of Daniel Morris, Founder Success Leaves Clues -...
1
Daniel Morris, Founder VeraSage Institute
Twitter @morriscpa
Success Leaves Clues
Genuine People. Creative Ideas. Valuable Results.
2
Beliefs Behavior Results
“Creating Significantly Better Results that are Sustainable ALWAYS Requires a
change in Beliefs”
Anchors and Drag are Below the Surface
2
Changing beliefs requires a different vocabulary
Words Matter
Better Words = Better World
1 Theme and 4 Voices with an Optimistic Future • Dan Ariely: We really don’t know what we want
• Simon Sinek: Understanding why we do what we do
• Joseph Pine: The Experience Economy
• Rory Sutherland: All Value is Subjective
Success Leaves Clues: You Are What You Charge For
3
Some Fundamentals:
• The Value Curve
• 4 Ways to Spend Money
• Top versus Bottom Lines
• Innovation
Success Leaves Clues: You Are What You Charge For
The Value Curve
High
Low
Relative Value Added
Unique Services
Experiential Services
Brand Name Services
Commodity Services
Price- Insensitive
Price- Sensitive
Volume of Work Available © William C. Cobb SOURCE: Adapted from William C. Cobb, "The Value Curve and the Folly of the Billing-Rate Pricing," in Beyond the Billable Hour: An Anthology of Alternative Billing Methods Richard C. Reed, ed. Chicago: American Bar Association, 1989, p 18.
4 Ways to Spend Money
Yours
Someone else’s
You Someone else
Family car
Gift
Expense account
Government
4
Confusing Revenue with Profits
Gross Revenues Per Team Member KPMG: $23.42B $155k EY: $25.83B $148k PWC: $32.09B $174k Deloitte: $32.40B $160k McKinsey: $ 8.00B $417k Apple: $170B $1,840 with profits of $584k/team member
Would You Have Invested?
Microsoft 1978
5
Opera Grows while Symphonies Suffer
Even as movie going stagnates and symphony attendance declines, opera in America keeps growing. Over a 20-year period, the number of people at live opera performances grew 46 percent
Success Leaves Clues: Lessons from Amazon, Netflix & Google
Karl Albrecht
“The loss of focus on the customer as a human being is probably the single most important fact about the state of service and service
management in the Western world today.”
6
Not jet engines.
Flying time.
BUT
Not cement. BUT On-time delivery.
“Worth noticing or commenting on.”
Remarkable:
7
If I had a son or daughter, would I be willing to have him or her work for this company? If yes, why? If
no, why?
Peter Drucker
9
Relative vs. Absolute Price
Couple w/o children
Couple w/children
Expensive Date
Cheap Date
Dinner + Concert = $150
Dinner + Movie =
$75
$150 + $50 Babysitter
$75 + $50 Babysitter
2:1
1.6:1
Framing
10
Simon Sinek, Start with Why www.ted.com
1. It’s inspiring. 2. It’s about meaning, not money. 3. It comes from the inside; what you really believe,
not what others think you should believe. 4. In some small way, it contributes to something
greater than earning a living. 5. It’s difficult – maybe impossible – to fully achieve.
How do you know you’ve reached deep enough to find your purpose?
11
The Five Most Important Questions
1. What is our purpose (“Why”)? 2. Who is our customer? 3. What does the customer value?
(Most important and least asked) 4. What are our results? 5. What is our plan?
Chinn and Associates
“I believe in handling divorce so there is
a family left standing, even if
there is no marriage.”
12
“The customer never buys a product. By definition the
customer buys the satisfaction of a want. He
buys value.”
Peter Drucker
Are You a Commodity?
13
You are what you charge for.
¢ If you charge for stuff, you are in the commodity business (fungible)
¢ If you charge for tangible things, you are in the goods business (tangible)
¢ If you charge for the activities you execute, you are in the service business (intangible)
¢ If you charge for the time customers spend with you, you are in the experience business (memorable)
¢ If you charge for outcomes the customer achieves, then you are in the transformation business (effectual)
14
4 Bucks
The Customer Experience
The sum total of all interactions a person has with a company (Moments
of Truth = MOTs).
15
Who Is Our Competition?
We compete against any organization that has the
capability of increasing our customer’s expectations
16
American Girl
American Girl Birthday Party
“Selling is persuading someone to buy something that you had and wanted to sell while marketing
is having something that a prospect already wanted to buy. In a perfect world, the aim of
marketing is to make selling superfluous.”
Peter Drucker
17
“Advertising is a tax for having an unremarkable product.”
Robert Stephens Founder, Geek Squad
Mini Cooper Ship Tracker
“Harley-Davidson offers the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”
––Harley-Davidson Executive, explaining what
customers really buy
18
Results from a Excellent Customer Experience
1. Willingness to buy more 2. Reluctance to switch
suppliers 3. Likelihood to recommend 4. Willingness to pay a price
premium
19
“The business enterprise has two -- and only two -- basic functions: marketing and innovation.
Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business."
Peter Drucker
“If you don’t like change, you are going to like irrelevance
even less.”
General Eric Shinseki
“There is NEVER a good sale for Neiman Marcus unless it’s a good
buy for the customer.” ––Herbert Marcus, advice to his son, Stanley
Marcus, upon his arrival to work at Neiman Marcus, 1926
Stanley Marcus 1905 – 2002
20
NAGBA is Part of the Problem: A
Better Evaluation Form
1. What did you hope to gain from your participation in this learning experience? What did you contribute to the dialogue?
2. When were you the most anxious or fearful?
3. When were you the most inspired or ecstatic?
4. What did you learn about yourself?
Discussion Questions
¢ What makes your CPE special? What’s our “Why”?
¢ Who is our competition?
¢ How can we exceed our customers’ expectations?
¢ What “plussing” opportunities could we add?
¢ What “Moments of Magic” could we offer our customers?
¢ What is the (your) core offering?
What if Disney entered your industry?
21
“Tell me ten things you never hear said about this industry?”
––Branson’s challenge before entering a new industry
Richard Branson, Founder, Virgin
All Value is Subjective
“When it leaves the factory, it’s lipstick. But when it crosses the counter in the department store, it’s hope.”
Charles Revson, Founder, Revlon
22
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Cost
Price
Value
Rory Sutherland, Vice-Chairman, Ogilvy Group,
UK
23
Why?
The Problem with Efficiency
The Antithesis of Efficiency
• Continuing education • Knowledge management/CKO • Total Quality Service (Ritz-
Carlton) • Mentoring and coaching • Social media • Pricing on Purpose
24
Competing with Zero Pricing
High
Low
Defection Rate
Immediate
Threat
Business Model Threat
Minor Threat Delayed Threat
Low High
Growth Rate
A Gedanken
A Gedanken
Air Canada’s KPIs: v On Time
Performance v Lost Luggage v Customer
Complaints
25
“When we’re looking for goals for an entire company, we make sure our employees know what we’re going for: to get the planes on time, not to aim for a certain return on investment. Goals such as certain equity or debt ratios…work fine for accountants…But when it concerns the whole company, we need a companywide goal–something that employees can immediately identify.”
–Gordon Bethune, CEO, Continental Airlines, From Worst to First: Behind the Scenes of Continental’s Remarkable Comeback
“This is one of the most common problems in businesses. Businesses fail because they want the right things but measure the wrong things–or they measure the right things in the wrong way, so they get the wrong results. Remember? Define success the way your customers define it.”
–Gordon Bethune, CEO, Continental Airlines, From Worst to First: Behind the Scenes of Continental’s Remarkable Comeback
“The only way to look into the future is use theories since conclusive data is only available about the
past.”
–-Clayton Christensen, et. al. Seeing What’s Next
26
Thank You!
Twitter @morriscpa
VeraSage website/blog www.verasage.com (408) 292-2892