Tuesday, September 25, 2007

A Healthcare Solution for America

The healthcare solution for America is simple, but it certainly isn’t easy.

While the United States arguably has the finest healthcare professionals and treatment facilities in the world, many Americans cannot get access to our outstanding healthcare system because of the prohibitive cost, insurance restrictions, and arcane government regulations that work against wellness in our country.

It’s time to move beyond the finger pointing, doubts, and philosophical arguments by special interest groups and adopt a national healthcare reform program in which every American can participate at little or no cost. The solution is the adoption of a progressive healthcare program for the United States which would be created by an Act of Congress, paid for mostly by taxpayers like you and me, and managed by an independent, non-profit agency under the direction of the Secretary of the Department of Health and Human Services.

I am proposing a program that would be voluntary. But, I believe its strength and innovative approach would attract more than 90 percent all of medical professionals, universities, clinics, non-profit service agencies, and industry organizations that currently serve the healthcare industry in America. I also think it would set a precedent for other nations that wish to provide a universal healthcare benefit for their citizens.

Let me note that I am neither a physician nor healthcare expert. Frankly, I don’t think those credentials are necessary or beneficial in this discussion because those individuals -- and rightly so -- have devoted their adult lives to healthcare and, thus, they have hardened opinions and biases as to whether or not a national healthcare program is a good idea and how it should be managed. I think we need to get past those discussions and, at the appropriate time, seek the input of healthcare professionals on how to best manage a program.

Also, I have not been asked to write this article, nor am I being paid for it. Finally, I am not championing the cause of any special interest group. I am simply a citizen who has worked in the non-profit sector for many years and I currently pay a substantial monthly premium for my healthcare insurance. To date, my insurance provider has been responsive and fair to me. I have no issues or complaints with my insurance provider or any of the outstanding medical professionals who have cared for me over the past fifty years. I have never suffered a major health issue, and I count myself fortunate that I am able to afford healthcare insurance although it becomes more expensive each year.

Having said that, I think our healthcare management and distribution system is broken and needs fixing. I am appalled that every American does not currently receive free primary healthcare services as an entitlement of their citizenship. It’s time we emerged from the dark ages of “healthcare for the privileged” and adopt a progressive healthcare program that provides outstanding healthcare for all Americans and legal visitors to our country.

But, who will pay for it, you might ask? The honest answer is that it will be paid for by you and me -- the taxpayers of the United States of America. Nothing is free in the Land of the Free, but there are certain things that every American needs and should demand. A quality education and comprehensive healthcare are two such things that will raise our standard of living and create a stronger nation. I believe a national healthcare initiative is the most efficient and comprehensive way to advance healthcare for all and will keep the costs from spiraling out of control.

My motive in proposing a national healthcare initiative is selfish. I want access to the best healthcare in the world for the rest of my life -- whether I live a thousand days or 10,000 days; and, I don’t want to be told by some faceless individual working in a corporate building whose job it is to save his/her insurance company money, that a vital medical procedure, treatment, or drug will not be authorized because their bottom line is valued more than my life. It’s that simple! Here’s a true story that illustrates my point.

A few weeks ago, I read a very disturbing front page story in the Wall Street Journal about a middle-aged woman who worked in a small town in Texas as a hairdresser. She discovered a lump in her breast and went to a private hospital for diagnosis and care. Unable to pay for the necessary treatment, she was shuffled from one doctor to another over several months until a free service could be found. Regrettably, she was denied the proper care because she was unable to pay the costs for her surgery. Furthermore, federal regulations that would have allowed for free treatment, were unknown to the patient and she was caught in a Catch-22 cycle. Eventually, the woman died despite receiving a mastectomy and good follow-up care in Colorado where her daughter lived. The patient had to sell her home, relocate to Colorado, move-in with her daughter, and be subjected to the humiliating rules of the state and federal healthcare bureaucracy. Despite the heroic efforts by her daughter, who was a nurse, to get her mother timely and proper care, the patient died from the cancer. But, as I read this heartbreaking story, it occurred to me that the woman’s death was also expedited by insensitive people in the healthcare industry who made a series of life-and-death decisions to deny her treatment in the early stages of her diagnosis. Had that been their mother, I am sure the roadblocks and outdated regulations would have been removed to facilitate the best possible care. This is not only a tragedy but a disgrace to the dignity of every American. Frankly, reading this story angered me because nobody should deserve to suffer and die -- let alone go broke -- when the best medical care in the world is readily available. There are certain national issues and causes whose interests are poorly served by the twin engines of capitalism and profit. Healthcare is one such issue.

So, here’s my proposal to remedy the healthcare problem in America.

Step 1. Create the National Healthcare Foundation.
The United States Congress should approve and fund a National Healthcare Foundation (NHF) within the Department of Health and Human Services. The role of the NHF would be to administer a national healthcare program through a network of state agencies that entitles every American citizen and authorized visitors (tourist, student, visa holder, etc) to unlimited primary and emergency healthcare services for any treatment that will enhance their wellness or preserve their life.

At the core of this innovative national healthcare program would be a network of medical facilities, hospitals, shelters, clinics, and providers who would all be required to operate as independent, self-operated, not-for-profit entities. In other words, no shadow subsidiaries would be allowed in order to protect the integrity of this reformed healthcare service. Obviously, this would require many for-profit medical facilities and hospitals to change their status from “for-profit” to “not-for-profit” in order to participate. It might even result in some for-profit corporations selling off certain facilities or medical practices to convert them to not-for-profit status. Individual physicians and other medical professionals would be exempt from this requirement and eligible to participate in the NHF provided their billings were directed through a not-for-profit entity such as an eligible hospital or clinic.

Step 2. The National Healthcare Foundation (NHF) will be funded and paid for by the United States Government through its taxpayers. Every citizen has the right and privilege for primary and emergency healthcare under the same legal protections that ensure “life, liberty, and the pursuit of happiness.”

I estimate the annual cost for this program as outlined herein would be $350 billion in its first year. It would not be cheap; the cost of good healthcare never is. But, this is also a way to control the spiraling costs of healthcare, and, as you’ll read, we can achieve a significant return-on-investment within three years of this plan through some innovative methods and self-funded programs. In three years, this program could actually cost us less than we are currently spending on healthcare today.

As part of the new NHF, all physicians, nurses, clinicians, pharmacists, researchers, technicians and other healthcare professionals -- as well as all healthcare facilities such as hospitals, teaching universities, clinics, and laboratories -- would be paid a fair market wage or fee for their services based on current wages and fees-for-services. These wages and fees would also be reviewed annually for cost-of-living adjustments. This proposal does not require anyone -- doctors, dentists, nurses, clinicians, teachers, administrators, or technicians -- to take a pay cut. These people are professionals and deserve to be paid a premium wage for their services.

As part of this proposal, Congress would create an independent Healthcare Compensation & Insurance Commission (HCIC) within the NHF consisting of nine individuals appointed by the president and confirmed by the Senate from the private and public sector who would establish a code of ethics for all NHF participants and an annual compensation and fee-for-services schedules that ensure fair compensation for all medical professionals and participating non-profit healthcare and educational institutions. The HCIC would also establish regional malpractice insurance rates and approve jury award limits for financial claims against medical professionals and institutions that are sued for malpractice and related claims. This would dramatically reduce the exorbitant cost of malpractice insurance.

Step 3. The National Healthcare Foundation (NHF) would consist of ten divisions. The purpose of these divisions is not to ensure adequate representation for the healthcare industry, but rather, to ensure all Americans receive primary and urgent healthcare as well as foster the research, education, and advancement of the healthcare profession. Each division is described below in general terms outlining their major roles and responsibilities. Additional divisions could be created as warranted.

Primary Care
Urgent Care
Assisted Care, Long-term Care, Child Services, Shelters, Hospices, and Therapy Services
Research & Technology
Organ Donor Programs
Education, Training, and Accreditation
Wellness Treatments
Licensing, Regulations, and Insurance
Payment, Audits, and Enforcement
Administration

1. Primary Care would include areas such as pre-natal, pediatrics, dental, oral surgery, family physicians, orthopedics, chiropractics, and other traditional medical practices (there are many more than can be listed here) that care for patients through office visits and preventive disease treatments. Primary Care would also include care for the developmentally disabled, mentally impaired, and treatment programs for diseases such as alcoholism and drug addiction. The NHF would pay for one hundred percent of these services based on a regional formula that fairly reimburses physicians and/or medical providers such as hospitals, clinics, and social services agencies. In other words, a family physician in New York City might be reimbursed using Schedule A while a community clinic in Albany might be reimbursed according to Schedule B. The adoption center in Macon, Georgia might be paid according to Schedule C and so forth.

2. Urgent Care is defined as any medical treatment that requires emergency room-related services and ambulatory services to treat life-and-death situations such as heart attacks, seizures, car accidents, shotgun wounds, etc. Such care would be provided by licensed emergency rooms or 24-hour emergency care clinics located across the nation. This non-profit network currently exists with the exception of several rural and poor communities that desperately need medical professionals and local facilities. This level of service would also apply to animal care through veterinarians with a limited annual dollar amount for pet owners. The NHF would pay for one hundred percent of these human services based on a regional formula and payment schedule that fairly reimburses the medical providers for their services and procedures. Veterinarian care would be reimbursed at fifty percent of the cost with pet owners paying the remaining balance.

3. Assisted Care, Long-Term Care, Child Services, Shelters, Hospice, and Therapy. This division would advance the needs of those persons who are unable to independently care for themselves including persons suffering from mental illness, Alzheimer, AIDS, and terminal illnesses. This division would also be the champion of children who require adoption, foster homes, and day-care services for working parents. This division would also support the needs of persons requiring mental or physical therapy.

This division of services also would include those patients who require assisted care living or long-term care situations including hospices. Also, it would apply to those patients who are under psychiatric care, medical counseling, the aged, developmentally disabled, persons suffering from physical injuries including paralysis, or persons requiring rehabilitation treatment and therapy.

This division would also fund homeless shelters, runaway shelters, and homes for victims of family violence or spousal abuse. The NHF would also provide greater grant funding to support various state and county government social service agencies.

The NHF program would pay for ninety percent of these services. The other ten percent would be funded through private contributions, grants, and fundraising activities. Patients or family members would not be charged any fee for receiving these services.

4. Research and Technology would advance and encourage the development of innovative medical practices including new medical procedures and treatments, product design, drug research, and other such developments that would enhance the advancement of medicine and its treatment of patients. The NHF program would pay for eighty percent of these services to bona fide not-for-profit institutions and research centers. The other twenty percent would be funded through private sector and public sector grants, individual contributions, and fundraising or advancement campaigns. For profit entities including drug manufacturers would fund their own research and be eligible for grants under other federal agency programs as is currently the case.

5. Organ Donor Programs. This division would advance the existing international network of organ donors, recipients, maintain a national database, and work to promote public awareness and support for organ donations while expanding the international network. This program would be completely funded by NHF including the costs associated with transporting patients, family members, and organs for a medical procedure.

6. Education, Training and Accreditation. This division’s mission would be to advance enrollment and training capabilities of teaching universities and hospitals as well as all other certified and licensed not-for-profit educational institutions that train medical professionals including doctors, nurses, and technical professionals. The NHF would pay for ninety percent of a student’s educational and medical tuition or training that requires a medical degree or healthcare professional certificate. The remaining ten percent would be paid for by the student or through scholarships and grants. The cost of continuing medical education programs would be borne by the individual unless it leads to a medical degree or post-degree certification.

A scholarship program would be required of each participating not-for-profit teaching institution to fund “special need” applicants and non-residents (foreign citizens). Institutions would be required to fund all non-educational programs and services such as administration, facilities management, and human resources as is currently the case. All students receiving funding support from NHF would be obligated to serve-with-compensation in an NHF-certified healthcare facility or practice of their choosing for an period of time equal to the funding they received from the NHF. The current system for accrediting medical colleges, schools, and universities would remain in place and not be funded by NHF.

7. Optional Treatment and Wellness Programs. This division of the NHF would be responsible for overseeing and advancing those medical treatments that are deemed non-life threatening but do enhance the health and self-esteem of individuals. Cosmetic surgery, plastic surgery (not required from a related illness or medical emergency such as an auto accident or burn incident), and wellness treatments such as spas and weight loss clinics would be covered under this section. The NHF program would pay for twenty-five percent of all such services with an annual and lifetime limit expenditure-per-person to be set by the HCIC.

8. Licensing, Regulations, and Insurance. This division of NHF would be responsible for overseeing three key areas -- licensing, regulations, and insurance programs associated with the NHF.

In the Licensing area, all not-for-profit medical facilities seeking to participate in the NHF program, and receiving any federal funds through the NHF, would be required to be certified by NHF or its designees. For example, a not-for-profit medical lab in St. Louis would have to apply for “NHF Licensing” in order to participate in the volunteer NHF program. Certain licensing reciprocity would be available -- including any hospital, laboratory, or medical facility that is accredited by the Joint Commission -- so long as that facility maintained its Joint Commission certification.

The Regulatory unit of NHF would oversee two major reforms that effect healthcare. First, the creation of a national malpractice insurance fund to protect all practitioners and facilities; and, secondly, oversight for the regulation, distribution, and enforcement of all “Re-classified Prescription Drugs” including many of those drugs that are currently deemed illegal today such as marijuana, cocaine, and heroin. These particular reforms are urgently needed in order to curb excessive malpractice insurance rates and end America’s fledgling war on illegal drugs which is costing taxpayers hundreds of millions of dollars. Here is how these two reform programs would work in concert with other federal agencies.

A special Malpractice & Medical Claims Insurance Fund (MMCIF) would be established by Congress as part of the enabling NHF legislation to cover all medically-related lawsuits or malpractice claims against program participants. Why? Because this element of the NHF is the “hook” that will single-handledly encourage over 90 percent of all physicians, dentists, and other healthcare practitioners, who must pay costly malpractice insurance premiums, to enroll in the NHF and support its success. Also, as a volunteer program, the benefits of participating in the NHF must be significant in order to attract widespread national participation among medical professionals and medical care facilities. Regardless of their status as not-for-profit entities or for-profit businesses, medical professionals and healthcare institutions will follow the money! It’s the American way.

Under this proposal, the MMCIF would pay up to ninety percent of all medical malpractice insurance premiums -- as established by the HCIC -- and have the power to cap the dollar amount for all malpractice claims as part of their independent administrative law authority. Participants (physicians, dentists, and healthcare facilities) in the NHF program would pay the remaining ten percent which would sufficiently fund the malpractice program as well as other activities of the NHF. The NHF would be able to contract with insurance companies and agents across the country to administer this program and ensure all participants are in compliance. A reasonable fee-for-service, as approved by the HCIC, would be paid to these companies and agents for their services.

The second major reform deals with solving America’s problem with illegal drugs. Each year, the United States Government spends billions of dollars trying to stop the flow of illegal drugs into our country and arrest, prosecute, and imprison drug offenders and traffickers. While the merits of this effort are laudable, it is a costly war that requires a different solution in today’s global environment. That solution is not the legalization of drugs, but rather, a program that would allow for the regulation and distribution of those drugs under a system similar to our current prescription and pharmaceutical distribution of prescribed drugs.

Under this proposal, the Food and Drug Administration would authorize American-owned drug companies to manufacturer certain drugs in various dosages -- including marijuana, cocaine, and heroin -- to ensure these prescriptions meet rigid federal guidelines for dosage and/or treatment. Federal and state healthcare agencies that oversee current licensing requirements for pharmacies and other prescription drug providers, would license certain drug distribution facilities to dispense medically-approved prescriptions of those drugs to persons who require them for medicinal purposes or to treat their addiction. As part of any legal prescription from a physician, every patient using these “recreational” drugs would be required to participate in a licensed counseling and treatment program which would be paid for by the NHF as part of its Primary Care Division.

This drug reform program would have many beneficial effects. First, it would severely reduce the activities of illegal drug cartels in foreign countries and allow the Drug Enforcement Agency (DEA) to focus its vital resources on other important activities. Secondly, it would reduce property crimes and felonies by drug users who must “feed their addiction.” Thirdly, it would reduce gang violence in major cities and reduce the need for gang involvement. Fourthly, it would allow the medical community to adequately treat people with addictions. Fifth, it would reduce the prison population since more people will receive treatment for substance abuse in a medically-controlled environment and, thus, they will not be engaged in criminal activities nor be imprisoned for criminal offenses. This program would be funded completely by NHF. The cost savings to DEA and other drug-fighting agencies justifies this reform proposal.

9. Payments, Audits, and Enforcement. The NHF would establish a Payments, Audit, and Enforcement Division to handle all claims and funding requests from program participants. By law, payments for treatment and services would be paid within thirty days of billing to all approved, first-party payees (physicians, hospitals, clinics, etc) or the NHF would be required to pay interest to those providers. The NHF could contract out payment services to approved third party contractors or state agencies.

The Audit Division would be responsible for overseeing compliance of all NHF and HHS rules and requirements for billings and payments.

The Enforcement Branch would be given full federal law enforcement powers and be responsible for enforcing all NHF and HHS laws and regulations. Alleged violators would be referred to the United States Attorney for prosecution. Violators also could be fined, imprisoned, or banded from NHF program participation if found guilty of fraudulent activities or unethical conduct.

10. Administration. This division would encompass the typical administrative and support functions of a major government agency including but not limited to: human resources, government relations, inspector general, legal, regulatory affairs, and budget.

In Conclusion:
This description is not meant to be all encompassing, but rather, it is an attempt to further the discussion on how to establish a progressive healthcare program that ensures all Americans will receive the finest medical care in a timely and affordable manner.

Certainly, there will be some people who do not believe in free primary and urgent medical care. Others will argue the national cost for such a program is too high. I would strongly disagree with both arguments because I believe that every human being has the right to life, liberty, and the pursuit of happiness. I also believe that wellness and health play a major part in that formula. If we do not create a meaningful healthcare solution soon, the costs will soar beyond our control. A progressive healthcare program is the right thing to do given who we are as a people and what we stand for as a nation. Certainly, a network of not-for-profit healthcare facilities, staffed by America’s best-and-brightest medical professionals, would be money well spent and enhance the quality of life for all Americans.

Also, let me comment on the naysayers who are critical of national healthcare programs in England, France, Canada, Australia, and elsewhere. I am not suggesting that these program must become our model. Nor am I suggesting that we must emulate all of their practices. But, I am suggesting that if those programs were terrible, citizens would be revolting in the streets. So, there must be some merit in those programs. My question is this. What are their best practices? And, secondly, can we apply those best practices to a “Made in America” healthcare model?

In closing, I would not wish it upon anyone to be that person who must look your mother in the eye and tell her, “I’m very sorry, but we will not treat your breast cancer at this physician’s office or medical facility because you don’t have adequate insurance and our doctors aren’t able to take on any more charity cases.”

Regrettably, those words are being repeated over and over every day in medical offices and insurance companies by otherwise caring people whose job it is to put profits ahead of the healthcare needs of human beings. It’s time we put an end to this unethical and inhumane practice in the United States of America. Through this proposal we can achieve something significant that all Americans will be proud of.

I welcome your comments.

Tom Hinton
www.tomhinton.com

Monday, September 24, 2007

Reputation Leadership™

How to Rank First in the Hearts, Minds and Wallets of Global Prosumers”
by Tom Hinton

A new battle is taking place in the trenches of consumer marketing. At stake is not only which companies will win the hearts and minds of nearly 400 million Global Prosumers (GPs), but also their wallets! When you consider that GPs will spend more than two trillion dollars on products and services this decade, the importance of quality and innovation have never been higher. One of the strategic tools companies are using to capture Global Prosumers is Reputation Leadership™, a strategic initiative that helps companies establish brand dominance in their industry through their service, products, or principles.

First, let’s analyze the global world of Prosumers through the eyes of Reputation Leadership™. The word Prosumer was coined in 1980 by the author and futurist Alvin Toffler in his book, The Third Wave. It is the blend of two words -- producer and consumer. Toffler used it to describe a type of consumer who would become involved in the design and manufacture of products and services so they could be made to individual specification. Little did Toffler know that within thirty years, the generation that was being born as he wrote The Third Wave would, in fact, become a reality and change how businesses think and respond to consumers in a truly global marketplace.

The Battle for Global Prosumers:
The battle for Global Prosumers is taking place in the traditional retail market as well as in the design and manufacturing of everything from automobiles to airplanes to residential communities. Around the world, GPs are actively engaged in helping companies innovate and produce dynamic new products and services to ensure they meet their personal requirements.

There are some key success factors companies must build into each product or service they deliver. Reputation Leaders™ understand the importance of this strategy. Among the most desired attributes coveted by GPs are quality, service, reliability, and techno-friendly features. Interestingly, the price tag is not a key factor when it comes to owning the latest, greatest tech gadget like Apple’s new iPhone or a fuel-efficient hybrid car.

As Global Prosumers begin to purchase more expensive items such as autos, homes, vacations, and household goods including appliances and furniture, businesses are re-evaluating the best way to win over these affluent, new customers. This is causing businesses to rethink their marketing strategies and customer relations tactics. It is also forcing them back to the quality tools they put away at the turn of the century. Companies are also reallocating their marketing and advertising dollars in unique ways to attract GPs.

For example, the most progressive companies have recognized that non-traditional, GP-friendly venues are the best way to market to Global Prosumers. The beneficiaries of this spending increase include satellite radio stations, internet sites such as You Tube and My Space, internet and retail book stores and coffee cafes, non-traditional sporting events such as the X Games, social networking venues, and anything related to cell phone text messaging services or hand-held consumer technology. The losers are the traditional venues including most major newspapers (with very few exceptions), network television, and traditional AM/FM radio stations that have lost ground because of their antiquated formats and heavy commercials that turn off GPs. This is one reason why early converts to Internet marketing and user-friendly websites and consumer policies such as Toyota, Patagonia, Southwest Airlines and JetBlue Airlines have been able to corner their respective markets with Global Prosumers and capture their industry’s Reputation Leadership™ flag.

How Does Reputation Leadership™ Work?
Reputation Leadership™ is defined as the recognition of a company’s indisputable ranking as the pre-eminent leader in its industry or a global improvement niche as determined by consumers, brand loyalty, and measured by the Five P’s -- Purpose, Principles, People, Process, and Performance.

Here’s how Reputation Leadership™ works. The first step to implementing a Reputation Leadership™ initiative is to perform a comprehensive Brand Effectiveness Assessment. This would include your organization’s customer contact and operational support activities which includes: sales, marketing, billing, call centers, shipping, and other customer support activities that can make-or-break customer relationships. In step one, your goal is to measure your organization’s consumer performance against the Five P’s -- Purpose, Principles, People, Processes, and Performance. By responding to 66 key questions that are part of the Reputation Leadership™ initiative, your organization will gain a comprehensive understanding of its strengths and weaknesses through the eyes of the consumer experience. This important step reveals the linkage between your organization’s customer performance and sales results as measured against customer satisfaction ratings and an analysis of your Five Ps.

Step two of the Reputation Leadership™ initiative is to focus on your strengths while fixing any potential fatal flaws that could damage your reputation or brand image. An example of the “Fatal Flaw” factor could be a product recall such as the disastrous Made-in-China toy recall facing Mattel, corporate ethics violation, or some other scandal that tarnishes your brand or corporate identity. GPs want major products to work right the first time; and, they expect competence at the service delivery level. With regard to the focus on your organizational strengths, we have found that GPs look for unique factors that distinguish your product from the competition. This is why innovation, quality, and consumer-friendly products rank high among GPs and are rated very high in any Reputation Leadership™ initiative.

Step Three is to determine which leg of the Reputation Leadership™ Triad you want to base your brand leadership strategy. The three legs of the triad are: Service, Products, and Principles.

Disney, Coca Cola, Southwest Airlines, Wal-Mart, and Starbucks have based their Reputation Leadership™ strategy on “Principles.” If you examine each of these company’s slogans and consumer messages, you’ll note their branding strategy has little to do with a specific product or service. Instead, they win Prosumers through “the senses” that are based on a Principle.

Home Depot and Sharp use Products to establish its Reputation Leadership™ strategy while Apple actually uses a rare blend of both Products and Principles to win over Prosumers. However, the key principle behind Apple’s brand leadership remains cool technology.

Finally, Nordstrom, Ritz-Carlton, Four Seasons, and Washington Mutual have chosen Service as their Reputation Leadership™ strategy.

Once your organization has adopted its Reputation Leadership™ strategy, it is essential to invest in your people by training them to serve customers at a level that is memorable; and, adequately fund your marketing campaign especially in the area of brand recognition or a global improvement niche. It is imperative that your employees be trained to delight customers. This means being responsive to their concerns and needs at every point of customer contact. This is especially true (and frustrating) among call center operations. Our research shows that a growing number of GPs resist calling corporate call centers because they don’t like being placed on hold for several minutes or dealing with people who are uninformed, poorly coached in phone etiquette, or unresponsive to basic questions about how a products works as well as exchange/refund policies. The largest number of complaints we noted from GPs dealt with their frustration in telephoning cable companies and internet services. Another big offender are the major airlines who cannot seem to deliver such basic services as seat assignments on co-share flights with their international travel partners. Apparently, the major airlines cannot access their alliance partner’s seating charts! Another complaint area among GPs is the frustration of dealing with outdated website information. This is definitely a deal-breaker for GPs.

While there are other components to a Reputation Leadership™ initiative, these three steps represent the heart of a successful program that can help boost your brand success, increase sales, and improve your customer service ratings.

Two Ways to Capture the Prosumer Flag through Reputation Leadership™
Through Reputation Leadership™, a company can distinguish itself not only as a brand leader but also as a niche leader in a Global Improvement area. For example, several companies have captured the Reputation Leadership™ flag because they are recognized for their outstanding quality products/services. Among these Reputation Leaders™ are Toyota/Lexus, Singapore Airlines, Nordstrom, 3M, Boeing, Microsoft, Apple, Google, Whole Foods Market, and Harley-Davidson.

But, there are also a number of companies that reap the benefits of Reputation Leadership™ status because of their good deeds as corporate citizens in global improvement areas such as the environment, human rights, healthcare, diversity, employee relations, working with the poor, and other noble endeavors. These companies demonstrate their commitment to global improvement initiatives without any expectations in return. But, because of their unselfish commitment to global improvement causes, GPs take notice and spread the word quickly via the Internet that such companies merit their support. One recent example is (Red), a movement that was created by musician Bono and political activist Bobby Shriver, to raise awareness and money to eradicate AIDS in Africa. Companies produce red-branded products -- everything from cell phones to credit cards -- and donate a percentage of sales to the global fund. GPs strongly support these global improvement companies and spend billions of dollars in the process.

Enlightened business leaders know there is more money to be made in the long term by responding to the wants and needs of Global Prosumers. This includes embracing their social agenda. This is one reason why companies, that have initiated the Reputation Leadership™ strategy, are realigning their values and principles with those of the Global Prosumers. Some of the values and principles that resonate with GPs are: peace, freedom, diplomacy, environmentalism, universal health, self-expression, social acceptance, two-way conversations, democracy, and personal fulfillment.

Who Are the Reputation Leaders™?
Let’s look at some interesting examples of Reputation Leaders™ from three industries - Commercial Airplanes, Fast Foods and Hotels.

In the commercial airplane business, Boeing is the undisputed Reputation Leader™ and has gained a decided competitive edge over its competitors by including the wants and needs of Global Prosumers in the design of its exciting, new Dreamliner 787 jet. Nearly fifty percent of the new airplane is made from composite materials which increases its fuel efficiency and makes it more environmentally-friendly. The twin aisle jets are wider; and, the spacious seats provide more leg room making the airplane more comfortable for coach cabin passengers on long hauls. Overhead luggage space has been increased as have the size of cabin windows. Boeing even considered the importance of onboard ambiance by developing a cabin lighting system that can be altered to create different moods depending on day or nighttime flights.

Atop the list of fast food restaurants are two chains that stand-out among GPs. First, is In-N-Out Burgers, the popular fast food restaurant chain founded in 1948 in Baldwin Park, California. It’s family-owned and operated with more than 150 locations in California, Arizona, and Nevada. For sixty year In-N-Out Burgers has honored it slogan, “Quality You Can Taste.” GPs flock to In-N-Out not only because they deliver on their quality promise, but also, they enjoy the youthful, upbeat ambiance that is generated by well-trained, well-mannered, and well-groomed college-age employees who work hard to ensure a clean environment.

In Kingsport, Tennessee you’ll find Pal’s Sudden Service, another small, privately-owned burger chain. With 20 locations within sixty miles of the Virginia-Tennessee border, Pal’s beats out the competition with superior service and great burgers, fries, soda, and milkshakes. Pal’s also won the Malcolm Baldrige Award in 2001 and continues to focus on excellence with its 500 youthful employees. Pal’s is a great example of how a company can remain small, keep it simple, and satisfy the hunger needs of its customers.

In the hotel industry, Sol Melia Hotels is a Reputation Leader™. Founded by Gabriel Escarrer Julia in 1956 in Palma on the Mediterranean island of Mallorca in Spain, this unheralded hotel chain is making noise by capturing a growing share of the resort and conference market throughout Europe and the Americas. With 350 hotels in 30 countries on four continents, Sol Melia is the third largest hotel chain in Europe and the 12th largest hotel chain in the world. Because of its quiet reputation for service excellence, Sol Melia is ranked as the world leader in resort hotels and also ranked number one in Latin America and the Caribbean.

Calculating the ROI for Reputation Leadership™
Ultimately, the key question any senior executive should ask when weighing the benefit of this initiative is: What can I reasonably expect within 3-6 months of my investment? While the answers will vary depending on a company’s market, size, reputation, and commitment to the process, CRI Global developed a revenue formula known as the RL™ Factor that calculates the anticipated financial gain from a Reputation Leadership™ initiative. CRI Global studied the financial data of leading companies in six major industries over the past four years and measured their financial results against the results of their four closest competitors.

The preliminary results show some impressive numbers when calculating the ROI for Reputation Leadership™. In the chart below, the RL™ Factor shows what the anticipated ROI will be for a company with annual sales of $10 million that implements a Reputation Leadership™ initiative.


RL™ Factor Chart. (Based on Annual Gross Sales of $10 Million)
If your Industry Ranking is first, second, third, or fourth, your expected "ROI Percentage" and "Revenue Realized" from a Reputation Leadership™ initiative is noted below:
1st .012% $120,000
2nd .008% $80,000
3rd .006% $60,000
4th .004% $40,000


To determine the potential ROI for your company from a Reputation Leadership™ initiative, multiple your gross revenues by the ROI percentage above depending on your industry ranking (if you rank lower than 5th place, use .0012 as your percentage). For example, if your business generates $10 million in gross sales, and you currently rank third in your market, your ROI for a Reputation Leadership™ initiative should average $60,000 in the first year. As your brand acceptance and customer performance levels increase, your ROI will increase annually at that rate.

But, here’s the exciting part. Your ROI gets even better when you factor in one more key variable -- the Accelerator Value Factor (AVF). This means that your ranking as the Reputation Leader™ in your industry or a Global Improvement niche is worth considerably more because of the market place benefits your company will derive as the Reputation Leader™. Below is an example, based on your Reputation Leadership™ status. Let’s say your pizza shop won top honors in a newspaper poll as “the best pizza place is town!” Assuming your current gross annual revenues are $400,000, your AVF factor on top of gross sales would be:

Industry Ranking: Percentage: AVF:
1st 2.8% $11,200
2nd 2.2% $ 8,800
3rd 1.8% $ 7,200

If you are the top-ranked pizza shop in your region, multiple your gross sales by 2.8% to determine your AVF benefit. In the example above, the pizza shop that is ranked Number 1, would see a windfall of $11,200 due to its ranking and increased customer business. That’s some nice dough for a pizza place that has been recognized as the “best pizza in town!” For a business that ranks below 3rd place, the AVF is insignificant to your top line.

Global Improvement Niche Leader Factor:
Finally, if you are a Global Improvement niche leader, the top ranking is worth 1.2%; a second place ranking is worth .008%. Below that level, the Global Improvement niche benefit to a company’s bottom line is insignificant.
Global Improvement ROI Factor Chart (based on $1 million in gross sales):

Your GI Industry Ranking: ROI Percentage: Revenue Realized
1st .012% $12,000
2nd .008% $8,000


As an example, let’s look at Vanity Fair magazine, which is very supportive of the (Red) campaign mentioned earlier। Vanity Fair’s African-themed July issue is being guest edited by music superstar Bono and it is carrying more than twice the number of advertising pages as the July 2006 issue. Bono's issue will have 105 pages of advertising, compared with last July's, which had 49, making it the biggest July issue ever for Vanity Fair. The potential increase in single-issue sales for July could be as high as $1 million. Additional advertising revenues (for fifty full-page ads at a cost of $80,000 per page) could reach $4,000,000. While the numbers won’t be known for a few months, suffice it to say Vanity Fair will reap the benefits of its global improvement commitment. By the way, the July issue will far exceed the 1.2% revenue bump we’ve calculated for Global Improvement niche leaders.


In the final analysis, launching a Reputation Leadership™ initiative pays! It can boost sales and profits for your organization. It can also help you re-position your company as a brand leader or global improvement niche leader which will also contribute to your bottom line. Marketing alone will only carry you so far with Global Prosumers. The benefit of a Reputation Leadership™ initiative is that it will ultimately strengthen your reputation, reliability, and relationships with Global Prosumers.


About the Author:
Tom Hinton is president & CEO of CRI Global, LLC, an international consulting and training firm that helps its clients create a culture of excellence and implement Reputation Leadership™ initiatives. Tom is the author of four books including: The Spirit of Service, Customer-Focused Quality: What to Do on Monday Morning, Leadership Lessons I Learned on the Links, and, 10,000 Days: Finding Purpose, Peace and Passion for the Rest of Your Life. He is a popular speaker at corporate and association meetings. Contact: tom@tomhinton.com

Sunday, September 16, 2007

Travel to Cape Cod in the Fall to Recharge Your Creative Energy

It's September and there's something special about traveling to Cape Cod in the fall. Most of the tourists have gone back to their suburban homes and workplaces in the bordering New England states. But, die-hard devotees who love this special region, continue to visit this slice of paradise that juts out nearly forty miles into the Atlantic Ocean. Although the late summer air is cooler and the evenings are crisp, this is a beautiful time of year to visit Cape Cod. As autumn fast approaches, locals are taking full advantage of empty parking spaces that line these small town mainstreets. They window shop at old brick store fronts, specialty shops, and dine in fine restauants and delis. Locals also know the best places to sleep including intimate bed and breakfast inns that once served as magnificant homes for the leading families of Massachusetts.


History has been preserved in these quaint villages and townships where bicycles continue to be a favorite mode of transportation while the toll ferries to Martha's Vineyard and Nantucket Island still run full on the weekends. Not much has changed in the past one hundred years on Cape Cod. The courthouses and libraries are being restored to preserve their original glory. The sloping fairways of Woods Hole Golf Club and Cape Code Country Club still present a formidable challenge for golfers with their closely-lined trees and strong cross winds. And, hundreds of fishing trawlers and sailboats clog the harbors along Buzzards Bay and Nantucket Sound.


It's refreshing to see couples walking hand-in-hand down the sidewalks and shady streets of towns like Falmouth, Hyannis, and Chatham. These charming towns and villages are an inspiring mecca for writers, artists, and thought leaders. The deep blue ocean waters and quiet hideaways are the perfect setting for stimulating new ideas and reinvigorating the spirit. If you're looking for a wonderful setting where you can recharge your batteries amid the changing summer winds, travel to Cape Cod in the fall. Be sure to take a ferry ride and dine at one of the many weather-worn, clapboard restaurants along the narrow main streets where the seafood entrees were caught just hours before. Set aside time to stretch your legs and windowshop a while as you breathe in the fresh salt air. It will fill your senses with new ideas and warm your spirits as autumn signals its arrival with changing colors and frosty evenings.

Tom Hinton
www.tomhinton.com

Monday, September 10, 2007

Lead

How do leaders achieve excellence?
That was a question I put to a panel of CEOs recently and here are some of the comments that offered.
You can never manage people to excellence. Great leaders understand that people want to be led to excellence and they achieve this by creating a culture of excellence that touches the spirit of their employees.
The best leaders are authentic. They are people of depth who share their life experiences including the highs and lows, ups and downs, successes and failures. Why? Because everyone has had them and leaders know that it humanizes them to their employees.
Another way leaders achieve excellence is by mastering their profession. Great leaders spend thirty minutes every day for one year developing an expertise in something. This is why great leaders appear to be knowledgable and fluid in certain subjects. The truth is, they are!
Leaders give people permission to have ambition, to dream, and succeed.
Leaders also emit confidence and success so that the doubters have faith and overcome their insecurities.
Finally, here's one thought that summarizes the difference between managers and leaders. Managers are focused on today. But leaders are focused on tomorrow!
Remember, leadership isn't about a job title or a diploma.
Everyone has the ability to lead and we do so frequently in our jobs, as a volunteer, and with our family.
Inspire people and bring out the best in them!

Welcome to Tom Hinton's Blog

If you want to improve your personal performance and achieve your goals, this Blog is for you! Business author and professional speaker Tom Hinton will facilitate this Blog and invites your comments, perspectives, and postings.

Tom Hinton is the author of The Spirit of Service; Customer-Focused Quality: What to Do on Monday Morning; Leadership Lessons I Learned on the Links: 72 Ways to Par the Course of Business and Life; and, his newest book (which will be published in 2008, entitled, 10,000 Days: Finding Purpose, Peace, and Passion for the Rest of Your Life.

Tom's philosophy is that leaders create successful organizations by modeling the Five Ps of Business Excellence: Purpose, Principles, People, Processes, and Performance. Tom also believes that success in our personal life is about planning our work and working our plan.

This blog was created to help you discover your dreams and achieve your life goals. It was also created to introduce success secrets from people and organizations so that you can use their success tips and strategies to live your dreams.

For more information on Tom Hinton and his products or speaking topics, please visit www.tomhinton.com