A VIEW FROM THE EDGE

Directions for the Next Millennium
“Success is a journey, not a destination.” Yet as leaders and their organizations venture into this new century, most want assurance of the destination, not the opportunity.

Before becoming too anxious about the future, one should remember Christopher Columbus. He was an entrepreneur, who seized an opportunity. He solicited venture capitalists to outfit three boats that today would not meet OSHA or other regulatory standards and could not be insured on a venture with such high risk of falling off the edge of the world.

Mr. Columbus’ trip was unique. When he left, he did not know where he was going; once he got there, he did not know where he was and when he returned home, he did not know where he had been. The greatest testimony to his courage is the fact that 95+% of the trip was completed without the goal in sight.

In spite of this, most are grateful that he tried!

Compared to Chris’ experience, venturing into the 21st century is really low risk. With some direction, an awareness of hazards along the way, a good plan, implementation, continuous monitoring and adjusting, the journey will be successful and the destination reasonably assured.

The following essay is a “best guess” of general directions and road hazards that must be addressed along the way. Enjoy the DISCOVERY! -- Bon Voyage!

DEFINITIONS:
Tomorrow’s world will still have hospitals, banks, agencies, financial statements, etc. These however, will be redefined.. Prosperity will depend upon the ability to recreate organizations, products, services and results. Those that can’t or won’t adapt will be the fossils that become the fuel for the survivors.

People will need “high touch” in this growing “high tech” world. Community will become more important. Banks, hospitals, schools, and other community-based systems will be tomorrow, what “Main Street” and Malls are today -- meeting places / social systems. The community served will define the provider. Banks and agencies will consolidate into financial service centers and more. Schools will meet the needs of the community — parents and students -- not the needs of the education system. Hospitals will change from serving the sick to meeting a community’s needs — in sickness and wellness.

Financial statements will be changed to include the real assets of an organization, its people, their knowledge and relationships.

INTERNET / TECHNOLOGY:
PCs and the Internet will be recognized as “tools”, not the “be all and end all” of society. Relative to today’s world these are probably no more significant than were yesterday’s invention of “harnessed” electricity, the telephone and air travel. Measured against tomorrow’s greatest breakthrough — neutralizing gravity — the Internet is modest.
The danger is that many people are confusing the Internet and the data it provides with communications. People and relationships will remain most important. The Internet and technology can facilitate these but not replace them. Unfortunately many people will attempt to “hide” behind computer screens and become less experienced / competent in the social graces and people skills that are so important in tomorrow’s (and any other) world.

SEPARATION:
This country (and maybe the world) will polarize not between black and white, rich and poor, male and female, etc. Tomorrow ‘s battle line will be drawn between entrepreneurs / risk takers and bureaucrats (institutional thinkers) / non-risk takers.

The risk takers will take charge (that is their style) of and fund more of our systems. They will not be tolerant of the status quo. They will demand accountability and results. They will not fund indecision, bureaucracy, attendance-based systems, etc. They will force change and the chaos that often results.

Many lifetime bureaucrats will not be able to (or will choose not to) change and compete. They will seek an early out via an “entitlement” based program - disability income, retirement, unemployment, etc.

Most will later reenter the competitive market — motivated by survival and security needs and a realization that disability and retirement cannot sustain their lifestyle and future. Some will become entrepreneurs, some will obtain better opportunities and some will end up in lesser jobs. Some will never return to a productive role in society and will remain dependent on the system.

COMMUNITY — COOPERATIVE BUYING:
Historically, “producers”, agents, brokers and sales people have “balanced” the relationship between manufacturers, the insurance company, or provider and the customer. In fact, these have been more manufacturer representatives than allies of the customers.

Yesterday’s world was about “shoving” a shelf product down the throat of a consumer. Tomorrow’s world will be about going to the marketplace and finding one customer or a collection of customers and asking them what they want / need and then creating the product or service to meet these wants and needs.

The winners will be those individuals and organizations that are known and trusted by market segments to serve as their “buyer”. Successful “sellers” of tomorrow will bring customers to manufactures (product / service providers), not products to customers.

OMNI (ALL):
The whole is greater (or at least more efficiently and effectively delivered) than the sum of its parts. In a future that demands simple & more for less, holistic will be a necessity.

Marcus Welby medicine that treated the “whole body” (and in reality the whole body and soul) evolved into a system of “organs du jour”, that became incredibly expensive, more impersonal and not coordinated. This segmented system has imploded and is being reformed.

Resource Management, financial service centers, integration of alternative care into traditional medicine and Point of Service (POS) plans are examples of holistic systems. Systems, products, services and delivery may be bundled and unbundled during the “manufacturing and distribution stages” but the end result will be consolidated and simplified for delivery to the end user / consumer.

VALUE:
The success stories of tomorrow will be written by those that add value to the system. Excellent service, discounted pricing, user friendly, etc. will all be minimum standards in the future. All competitors will provide these. You must constantly do more with less.

Everything we do and the amount we charge for what we do, will be known to the consumer. This more sophisticated consumer will no longer pay for redundancy, windfall profits, fraud, inefficiency, etc. The consumer will pay for each step necessary in each process but they will pay only once and only to the most efficient provider. This, in effect, will put “glass doors on our bathrooms” — we will not be able to hide.

The only benchmark will be in the eye of the consumer — Do you “add value”? Do you simplify and enhance the life of the customer? If yes, you’re a winner! If no, good bye!

EARS (LISTENING VERSUS TALKING):
Communications used to be whatever the person or organization with the power said it was. Ours was a command and control world. “Daddy’s” style of “because I said so” will be replaced by “mamma’s” more listening, trusting, nurturing, and questioning methods.

In a diverse world — where old white guys are the minority and no longer control the power or the knowledge — communications will become the negotiation of meaning. Listening will be more important than “talking”. Win / Win will replace Win / Lose as the benchmark for success.

Successful communicators will be able to get “what is in their heart, out through their mouth.” Family and workplace violence, drive-by shootings, etc. will be recognized to be communication problems. Our needs in a diverse society — fairness, order, structure and opportunity are all driven by communication skills -- the most important “tool”.

RISK TRANSFER TO LOSS FUNDING:
Yesterday’s world was based upon a transfer of catastrophic risk and a clear understanding that all the government / insurance in the world could not eliminate all risk in life. Insurance companies underwrote (selected customers), defined coverage and established prices. Companies effective in these steps, made profits and survived — others failed.

Many people in tomorrow’s world, believe that the government and insurance companies should remove all risk from life (we’re victims!). Today’s insurance will not work tomorrow because courts, legislators, regulators, etc. are expanding / redefining coverage after the premiums have been collected. For this reason — we’ll move to a claims made world that funds losses more than just transferring risk. Claims management, loss control, and behavior modification tools will be more important than underwriting.

YOU - YOUR WANTS AND NEEDS:
Historically, the consumer bought and assembled the products, commodities or services necessary to meet his / her needs. As the world becomes more complex, quick and confusing, customers will want one thing — integrated solutions to their problems.

Product “peddlers” will be replaced by resource managers. Those professionals committed to working with an individual, a niche of one, to meet his / her needs. Resource Managers will know what the customer wants / needs and will build the “team” necessary to meet these needs. Making life simple and creating positive experiences will add value.

! = RELATIONSHIPS:
“People, people who need people are the luckiest people in the world”. People, people who understand people will be the most successful and fulfilled people in the world. The more “high tech” the world becomes the more necessary and important is “high touch”. NEVER, NEVER, NEVER UNDERESTIMATE THE IMPORTANCE OF “TOUCHING” THE HEADS, HEARTS AND SOULS OF AN INDIVIDUAL AND A COMMUNITY.

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