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Catalysts: How to Build an Adaptable Organization that Thrives During Uncertainty

Prophet’s 2023 Catalyst research highlights how companies can thrive despite disruption, stay on course for long-term transformation and turn change into a strategic advantage. 

The turbulence and upheaval of the last few years have become routine. That’s good since many believe this era of volatility, uncertainty, complexity and ambiguity is here to stay. Business leaders should pay close attention to the post-pandemic twist on Darwin’s law. 

It is not the most intellectual of the species that survives; but the species that is best to adapt and adjust to the changing environment which it finds itself.

Charles Darwin 

Recent disruptions have proved that while some companies are already impressively agile, many aren’t. Many larger businesses have spent the last few years lurching from one crisis to another, relying on limited moves torn from old playbooks.  

This article – the first in a series – is based on interviews with senior leaders and is focused on how enterprises can tap into variety, building organizational flexibility.  

Our respondents detailed their successes and setbacks, and ultimately illuminated five critical principles for creating adaptability at multiple speeds during this critical moment in time.  

Defining Adaptability in a Post-Pandemic World 

At Prophet, we define “adaptability” as the ability to anticipate and respond to opportunities created by a shifting market. And we define “at multiple speeds” across three horizons.  

Something that separates humans from other animals is the ability to plan ahead and imagine multiple potential futures. In modern life, we do this quite naturally:  

  • What’s for dinner tonight?  
  • Where might we take the family on vacation this year?  
  • When can I retire, and how much must I save?  

Here are just a few ways our respondents are anticipating and responding to uncertainty across these three key horizons.  

Optimizing for Today 

Our respondents are evolving operating models to deliver the current portfolio of products and services to the same customers. They are organizing resources to increase customer satisfaction and profitability. And they are hunting for efficiencies, like centralizing or outsourcing back-office functions for greater scale or lower costs. 

Innovating for Tomorrow  

Planning within medium-range windows includes expanding product and service portfolios or reaching out to adjacent target customers. And while many of our respondents may be leveraging brand relevance to expand into new categories and integrate new capabilities, it’s still happening within the boundaries of the existing business model. 

Building the Future  

To build for the future, our respondents are transforming their business models and fundamentally changing how the business makes money and creates value for customers. It’s a seismic shift, like Netflix’s move from mail-order DVD business to a content studio. 

Five Ways to Build Adaptive Organizations 

Our research led to five key strategies to enhance adaptability and create future-ready, resilient organizations.  

1. Put Purpose to Work  

Purpose-driven branding has been part of the corporate playbook for over a decade. Yet the definition and expression of that purpose keep gaining importance. Customers increasingly demand that companies stand for something, and people insist employers care about more than money. They won’t settle for a slogan on a wall or some fluffy catchphrase dreamed up at an executive retreat. It must mean something. 

Like human DNA, an organization’s purpose is fixed. “To operate in an environment filled with uncertainty, you have to create stability in other ways,” says Kris Ahrend, chief executive officer of the Mechanical Licensing Collective, a nonprofit focused on streaming royalty distribution. “Our culture is what gives us stability.” 

But while purpose may be steadfast, it can still be leveraged differently and more effectively, filtering throughout an organization’s activities. That way, it can provide renewed focus, guiding decisions and strategies. 

“Our purpose is always at the root of our decisions for what to do next and why,” says an executive at a large banking company. “We never take our eyes off why we’re here as an organization.” 

2. Gain Control by Letting Go 

Decentralizing governance can feel counterintuitive in these turbulent times. “We’re all moving forward wishing we had a crystal ball,” one human resources executive says. “Between the war in Europe, pandemic recovery, economic instability, and return to office policy, everything feels more uncertain.” 

But respondents feel strongly that this uncertainty is what makes pushing decision rights down even more important. Many wish they’d worked harder for this change in the past.  

Decentralization lets those closest to customers and operating problems make better and faster decisions. “It’s not just about tactical changes,” says Danielle Clark, a talent executive at eBay. “We have to address the underlying behaviors that enable leaders to step back and lead differently. It requires trust and a greater appetite for thinking boldly.” 

3. Lower the Cost of Experimentation 

 Adaptability requires innovation. And innovation, by definition, involves failure. Organizations must have realistic conversations and processes about what that means and what those failures might cost, especially in an uncertain economy. It’s easy to invest in experimentation when business is good. But experimentation is too often a prime target for budget cuts when revenue gets tight.  

“To be truly resilient, your organization must practice failing,” says one tech executive. “This is supported by a culture that encourages fast and safe failure with risk mitigation measures in place, so resiliency is exercised regularly.” 

4. Reinvest to Realign  

Aligning new strategies with existing structures is often challenging, especially for big companies that typically overinvest in growth areas during prosperous times and overcorrect in culling these growth areas during times of economic uncertainty.  

Over the last year, we’ve seen this pattern emerge within the technology industry, resulting in a hemorrhage of talent, confusing investors and disappointed customers. These massive gaps between their current structure and new strategy inhibit growth.  

The companies that overcome this risk and protect their business from boom-and-bust cycles are the ones creating agile operating models and continuously aligning structure with strategy.  

It is critical that business leaders get crystal clear about what the organization will not do going forward. “We have a strong understanding of who we are at our core,” says eBay’s Clark. “The work over the past few years has been to innovate boldly to maintain relevance while delivering with impact. This has led to our focused category strategy.” 

5. Embrace the Next Wave of Digital Transformation 

 Digital transformation continues to reshape how industries operate and deliver value to customers. The recent explosion in AI makes automation more accessible than ever before and will usher in the next generation of digital transformation.  

Best-in-class organizations embrace new technology to innovate the customer experience and streamline operations. They are using it to redefine systems, making work and life better. Rather than fearing it, they’re upskilling employees to work with these innovations, finding ways to drive a better business outcome.  

“We are asking questions about the business and people benefits,” says Jane Jin, a vice president at Takeda, a multinational pharmaceutical company. “What productivity might we gain when using these technologies? How might we develop our people so they continue to bring value to the company if technologies automate some of their tasks? How do we innovate responsibly and remove bias? How do our values translate in this digital age?” 

With a leadership team determined to decide when and how to adopt new technologies proactively, companies can guarantee decisions that boost productivity and encourage growth while staying true to their DNA. 

If history is any guide, these companies will grow faster and have an outsized advantage in attracting talent. Those that don’t will fall further behind. 

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FINAL THOUGHTS

As leaders grow increasingly comfortable with uncertainty, they’re hungry for strategies to build resilience and flexibility. In this series, we’ll explore why your company’s purpose needs to play a different role and how the most adaptive companies use their purpose to carve out compelling new business strategies. 

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Impossible Math

Why the healthcare labor crisis is more than just a people problem – and how to solve it.

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The healthcare industry is facing a massive labor and operating model problem – one that involves a predicted workforce shortage of up to 3.2 million people. With more than a quarter of the industry workforce planning to leave in the next two years and $9 billion in annual burnout-related turnover costs the healthcare industry is at a crossroads. So, where do we start?  

Prophet suggests that the solution starts with our nurses. In this report, we clarify the magnitude of the crisis, identify tangible issues to tackle and introduce viable solutions that will begin to drive impact against this behemoth of a challenge.  

Key Takeaways:  

  • Addressing the workforce shortage starts with a focus on nurses. By starting with the largest population of clinical workers, we can begin to make a more meaningful impact on the collective workforce challenge.
  • Sustainable solutions to this crisis are not just about workforce retention. They will require us to revisit hiring and talent development practices, redesign care delivery models and the roles required, and rethink the infrastructure needed to support innovation and scale care.
  • Ultimately, to drive meaningful impact for nurses, we need to hear from nurses. Once nurses have a say in the tools and solutions we develop for them, real change can happen.
  • Before jumping to the most ground-breaking innovations, we must bring ourselves back to the day-to-day needs of our nurses. Simplifying their routines with technology can help them feel heard and improve employee and patient satisfaction.
  • Prophet’s Human-Centered Transformation Model can help you understand where your organization can begin to tackle organizational and cultural dynamics that contribute to the labor crisis.

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Five Rules for Optimizing Omni-channel Clinical Care Models 

Building a human-centric healthcare organization that delivers on patients’ needs. 

With the pandemic increasingly in the rearview mirror, many healthcare organizations are coming to terms with the big and small changes that have become permanent parts of the healthcare landscape. Ushered in during the pandemic, omnichannel care delivery is now a fixture and will play an influential role for many years to come; that’s a good thing, as patients prefer having options and are often enthusiastic about new channels, technologies and treatments. More caregivers now see the value of omnichannel care, especially telehealth and in-home care, because they work so well for patients.    

In our recent work with clients, we’ve seen how different types of healthcare organizations can capitalize on leading practices for change and transformation as they seek to refine, optimize and expand their omnichannel clinical care models.  

The common denominator with healthcare leaders is human centricity. Organizations that successfully drive change design their care models around what patients want and need. Similarly, organizations that adopt a human-centered approach to transformation are more likely to succeed in winning hearts and minds, instilling new behaviors and changing the culture in sustainable ways.  

1. When transforming the clinical care model, start small and iterate fast. 

There are ample transformation opportunities across healthcare but organizations that take on too much change too fast are bound to struggle. The key is to focus on the achievable while understanding the distinct needs of underserved populations and addressing drivers of high cost. 

Organizing around a condition or a use case, rather than a service line, can be useful both for making progress and setting up for broader change over the long term. Breaking down big changes into manageable steps is the only way to go. For example, to redesign diabetes care, leaders will need first to address issues typically treated by primary care, endocrinologists and cardiologists, as well as supporting clinicians in nutrition and other related aspects of care.  

Our work with one national player confirmed how many patients with kidney failure “crash” into dialysis in an unplanned fashion when longitudinal care models can address the holistic needs of such patients. When Geisinger launched a home care program, it realized impressive results, including reduced ER visits and lower costs, largely due to its careful patient selection, a focus on chronic conditions and proactive outreach by care teams.   

Within value-based care models, better patient communication can increase HCAHPS scores, which directly impacts reimbursement. That’s a relatively small-bore change that can yield potentially big results. 

2. Recognize that every healthcare organization is also a software company. And an AI and data science firm, too.  

Whether or not they want to be, all types of healthcare companies are in the technology business – and we’re not referring exclusively to electronic medical records (EMRs). Software now underpins every step of the care delivery process and is essential to making the “anytime care from anywhere” vision a workable operational reality. And yet, there’s no denying that tech has contributed to significant burnout among healthcare workers, including physicians.  

Healthcare organizations would benefit from several tech innovations, including agile sprints and experience design principles, to continuously enhance features. Had EMRs been designed in this manner, they would more seamlessly fit into the clinical workflow and not contribute to provider burnout as they are today. Healthcare organizations can take a similar approach as they design omnichannel care delivery models and deploy new technology.  

Thinking like a service designer will help orchestrate the linkages between backstage systems and data sources and, ultimately, create a seamless experience for all types of users. Accommodating the needs of users with different levels of technology access and literacy – including both patients and caregivers – is the key to developing high-impact solutions. When designing a patient app for patients receiving home dialysis, we went through multiple rounds of design and user testing to ensure that the experience met patient needs in an intuitive way and delivered the right information at the right time. That’s how to empower – rather than overwhelm – users.  

Organizations must also change the perception, common after initial rollouts of EMR systems, that technology is the enemy. One way to overcome that persistent bias is to co-create solutions with patients, caregivers and providers. That’s what we did with a national player seeking to shift the site of care from clinics and inpatient settings to the home. Service designers worked directly with nurses and nurse practitioners who could speak empathetically to the day-to-day needs and challenges faced by home healthcare teams and provide feedback on initial design sketches. These foundational insights, as well as those from patient groups, guided the design of new tools.  

AI Goes Everywhere

There’s no talking about tech without talking about artificial intelligence (AI). AI seems to be taking over healthcare. Payers are using it to digitize claims, conduct audits and monitor payments. Clinically, AI is helping physicians scan X-rays and get ahead of emerging risks and adverse outcomes. Providers use AI to design care paths, personalize care coordination and model the financial impacts of different treatment plans. AI promises to revolutionize clinical trials in the pharmaceutical sector.  

Embedding AI-enabled technology deeply into care delivery processes can make routine tasks simpler, faster and safer. And it’s the most effective way to use technology as a “force multiplier” in delivering care, which is the primary motivation for many healthcare organizations that acquire technology companies. Technology that enables caregivers to do their jobs more effectively and operate at the top of their licenses is invaluable in a time of provider shortages. Equipping end-users (including physicians) with training, skills and knowledge to use the right tech at the right time is how tech can directly support better outcomes.  

That sort of human-centered approach is necessary to change minds, create advocates and smooth the transition as the organization evolves from being healthcare-centric to thinking and acting like tech, AI and data science companies.  

3. Transformation takes an ecosystem.  

Achieving ambitious change objectives will almost certainly require collaboration with others – including payers, specialty care providers, technology companies or other third parties. So finding the right partners is critical, even when focusing on a manageable, well-defined issue or opportunity.  

The massive complexity of healthcare – both as a business and in terms of delivering care – makes broad organizational buy-in an absolute imperative for effective transformation. Overlooking a key constituency can make the difference between success and failure.  

We define stakeholders as anyone playing a role in care or invested in its outcomes. Thus, the universe of stakeholders includes everyone from institutions (e.g., payers and large employers) to back-stage actors (e.g., hospital management, pharmacies) to front-line care providers (e.g., PCPs, specialists, therapists, care coordinators, social workers) and, of course, patients who must remain at the center. These stakeholders have wildly different incentives, hold different values and operate with different information and authority. 

The broadest ecosystems require teams to think like systems designers in working outward from the patient to the entire stakeholder ecosystem, including front-stage actors (e.g., caregivers, PCPs and specialists) and back-stage actors (e.g., care managers, pharmacists, hospitals, payers, regulators).  

Ecosystem design requires incorporating the needs and perspectives of many different stakeholders.  

All of these players have widely different incentives, hold different values and operate with different information and authority. Misalignment among ecosystem partners can manifest in systemic problems that reach deeper than any single touchpoint. When we design healthcare ecosystems, we apply such principles to understand current systems and envision those that will be necessary tomorrow. Design tools such as ecosystem and value exchange mapping are a critical part of incorporating the entire innovation ecosystem into specific solutions. 

Leveraging Internal Ecosystems

The most successful transformation programs also involve many different internal constituencies. One Fortune 500 healthcare organization seeking to disrupt renal care with increased use of in-home dialysis built a diverse, cross-functional team, including digital strategists, product teams, client nurses, nephrologists and other specialists, in its ideation process. It gathered ongoing input via iterative design and feedback sessions. The testing process of initial solutions involved 40+ external users, including patients, nurses and other caregivers and social workers.  

Organizations enacting large-scale strategic change often convene a leadership council for regular reviews and feedback. Typically, such groups include chief medical officers, clinical business unit leaders, medical specialists and senior operational and administrative leaders.  

4. Embrace regulation and payer mandates as inspiration for innovation.  

The expanding adoption of value-based care shows how regulatory requirements can prompt necessary change for organizations with creative leadership and high degrees of operational agility. By default, many leaders resist new rules and love to complain about old ones, which can lead to regulatory oversight being used as an excuse not to change.  

Federal regulators are certainly looking to foster innovation and prompt greater use of in-home dialysis via reimbursement changes in kidney care and other areas. The acute shortage of clinicians is another area where regulators are likely to be flexible in allowing healthcare organizations to experiment with new care delivery options. Consider how pandemic-era stop-gap measures to allow providers to practice telemedicine across state lines have remained in place. We believe the clinician shortage is an existential threat that must be at the forefront of the design of omnichannel care delivery models. Certainly, it will force provider organizations to automate more low-value tasks as they seek to expand their reach.  

Social determinants of health (SDoH) are also being incorporated into regulatory frameworks as their importance to health becomes clearer. Medicaid changes are more likely in the short term, with Medicare following suit in the long term. Organizations that are proactive in developing solutions – ideally in collaboration with regulators and other partners – will be positioned for future success.  

Working with a national provider organization to address the needs of diabetes patients, we focused on SDoH in determining how to shift the site of care to the home. Patients with mobility issues, those that lived in food deserts, or lacked reliable WiFi for remote diagnostics each required different design decisions. As innovation strategies more frequently intersect with regulatory requirements, we help clients think through the implications and find opportunities to streamline compliance processes as an outgrowth of experience design and technology development.  

5. You can’t change your clinical care model without changing your business model.     

This might be the hardest challenge in healthcare, because of the frequent tension between what’s good for patients and what’s good for the bottom line. In theory, clinical care organizations can find the financial backing to move to a more consumer-centric clinical care model in one of two ways:    

  • Improving patient loyalty and outcomes to become a recognized market leader or provider of choice, with the net effect of boosting both patient volumes and financial returns. 
  • Maximizing reimbursement for all kinds of clinical care services including those delivered outside the traditional clinic.    

We’ve found the first is a harder recipe for success and following it can lead to internal disbelief at best and barriers at worst. Financial incentives need to align with care incentives. Organizations that invest in transforming their care model should expect to realize financial rewards or at least figure out how to get paid for providing services that benefit patients.  

To make it happen, we have helped strong leaders think outside of existing markets to create new categories of care based on patient needs. To model the potential for a new home health business that a diversified healthcare giant was launching, we created a consensus view of existing service lines that could be brought together to meet patient needs in the home, from infusions, to telehealth, to diagnostics and monitoring. Here again, the key was getting stakeholders to collaborate and communicate in new ways.  

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FINAL THOUGHTS

Is there a more human-centric industry than healthcare? With technology becoming ubiquitous in all forms of care delivery, it may seem an odd time to ask the question. But in our experience, healthcare organizations that master the human touch in both care delivery and designing and implementing their own transformation initiatives realize the best clinical and business outcomes.  

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Celebrating Earth Awareness Month

From internal initiatives to a client panel focusing on sustainability, Prophet continued to build internal momentum on ESG.

Prophet celebrated Earth Awareness Month with a series of events to raise internal awareness and find measurable ways to reduce our carbon footprint. Throughout the month, Prophet’s global offices held shoe and clothing drives leading to an impressive number of items (600+) being donated to local organizations to help combat the growing number of textiles ending up in U.S. landfills (85% of all discarded clothing). Offices also participated in an informative, earth-month-themed trivia event. Prophet partner, Tosson El Noshokaty hosted an internal learning session on decarbonization and how we can apply this thinking to assist our clients. Finally, the capstone event was a panel discussion on sustainability with representatives from two Prophet clients, Cool Earth and Rainforest Partnership.  

About the Panelists

Cool Earth is a climate change charity that champions the relationship between people, rainforests, and climate. The organization gives cash directly to rainforest communities, to fund the root causes of deforestation, and protects vital carbon sinks. Cool Earth also aims to increase inclusion and connection to produce collaborative climate solutions across geographies. Through a series of working sessions and stakeholder interviews, Prophet co-created a revised set of corporate values and behaviors.  

Rainforest Partnership is an environmental organization working to conserve rainforests around the world. They work to create sustainable livelihoods in areas affected by deforestation, aim to increase biodiversity, and champion long-term forest protection by working directly with indigenous and local communities as guardians and economic participants. Prophet worked with Rainforest Partnership to redefine and activate new brand positioning and architecture framework. 

Client Panel Recap

Hannah Peck, deputy director, Magda Pieta, partnerships manager at Cool Earth and Niyanta Spelman, Founder and CEO of Rainforest Partnership joined Prophet for a moderated conversation that focused on everyday actions that we can do impact rainforest conservationism and sustainability. 

Four takeaways from the discussion: 

1. Avoiding inaction in the face of the staggering size of the climate crisis is incredibly important. 

“[We must] keep banging the drum and continue talking about it to get as many people on board as you can. There is no one magical thing that will fix it all. We need to make sure that we keep staying front and center in people’s attention and focus”

Magda Pieta, Cool Earth 

“[We should think through] how we can be an example. Grab a glass instead of grabbing a plastic bottle. Find what is the easiest for you to start doing and incorporate it into your home”

Niyanta Spelman, Rainforest Partnership

2. Even in the face of the current odds and predictions, we can still dream big.  

“Stabilizing the climate is this generations biggest challenge”

Hannah Peck, Cool Earth

“Can you imagine what we can do together? A world where 145 countries would actually write something down that they are going to end deforestation by 2030″

Niyanta Spelman, Rainforest Partnership

3. Every small change has a waterfall effect that can create real change, beyond just recycling, e.g., getting involved with World Rainforest Day or contacting local politician(s).  

Let’s [drive change] together. The sum of our parts is so much larger. Everyone can be an amplifier, no matter where you are in the world, what role you play, and whomever you know”

Niyanta Spelman, Rainforest Partnership

“One thing I recently realized I could change easily is where I bank, I can choose a more ethical bank… You can also write to your local politician about something you care about in your local environment to make an impact”

Hannah Peck, Cool Earth

4. When choosing what organizations to work with or donate to, it is pivotal to choose ones that are working in partnership with individuals on the ground.    

“Funding is almost always the biggest challenge for every rainforest conservation organization. The most impactful organizations are the ones that work closely on the ground. You should choose where you give money carefully and pick those that are the most impactful and work in partnership with communities”

Niyanta Spelman, Rainforest Partnership

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FINAL THOUGHTS

While Earth Month may have ended, our conversations around climate and sustainability continue. We know it will take a coordinated effort between governments, institutions, businesses, and people all over the world to build a more sustainable future. Our Earth Month activities reiterated that the best way to tackle societal, economic, and environmental challenges is by working together.

Prophet has resources for helping business leaders create and implement a sustainability mindset. Learn more about our ESG offerings here. 

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Why Do Only Some Social Media Brands Inspire?

Relentlessly relevant brands find ways to drive connection – see how social media brands are succeeding and struggling.

Each year Prophet surveys thousands of U.S. consumers about brands that are most relevant in their lives. The 2023 Relentlessly Relevant Brands report shows the brand relevance of more than 250 brands using data from those familiar with them. Analyzing the results from different perspectives yields provocative findings. This year we decided to take a close look at seven of the major social media brands on the “makes me feel inspired” survey question. Many people are impacted by social media brands in some way on a daily basis. We also decided to dissect this angle in part because the pinnacle of a brand connection is to be inspiring. We found an interesting dichotomy. The brands either fell into a clear high or low inspiring grouping. 

Social Media Brands That Inspire 

The high group included YouTube and TikTok, which were in the top 8%, and Pinterest was in the top 1% in the sample of 257 brands. Facebook, Twitter, Snapchat and WhatsApp, in sharp contrast, were in the lowest 20%.   

Each brand has its own story, which is interesting and insightful. It is hard to generalize, but it seems true that the high group has coolness, momentum and a superior ability to gain engagement in competition with those in the low group. Let’s take a closer look. 

The inspiration level at Pinterest is amazing and worth exploring. Why? First, it is user personalized—content relevant to a person, for example, can be pinned to their own board. There are also niche communities so that ideas can be shared around common topics. Second, the experience is visual, easy to use and inspiring. The user gets to discover high-quality images and use a search tool to find others. Third, the experience is enriched by having e-commerce opportunities embedded. 

The characteristics of the other two high group members are of interest as well. TikTok has short-video content that satisfies people’s attention span and is entertaining, discoverable and sharable with the possibility that any one spot could go viral. It has a user-friendly interface with creative tools and effects to enhance and customize videos that attract top talent. YouTube is convenient, assessable, and has vast user-generated content all of which attracts content creators and audience members. It offers high-quality educational, novel, entertaining and provocative content which means every person will find something that appeals to them. The AI algorithm is advanced; you are served up content that you will like. 

Social Media Brands Lacking Inspiration 

The lower four brands are not judged in isolation. They can slip by simply being “not as good as” the big three. But individually they each have issues that are not easy to deal with. 

Facebook has been battling negative public perception with respect to privacy and misinformation, fake news, and generally harmful or inappropriate content. This has spread into the political realm and has been amplified by polarizing attitudes. For the younger audience, the appeal of alternatives is a factor. 

Twitter has a character limit that can be limiting next to alternatives and suggests a lack of content. It is associated with cyberbullying, trolling and frenetic overuse among the young. Twitter has also received critical media coverage for its acquisition by Elon Musk and his controversial views and his decision to sharply downsize the staff. 

Snapchat has an interface that is harder to use than competitors. It is aimed at younger users where TikTok has made inroads. While disappearing content has plusses, it can be inconvenient especially if it is the preferred social media vehicle for a person. Their story is interesting because Snapchat was a breakthrough brand at the time of launch (almost like a fad), but other social media brands have replicated their unique features making them easily replaceable and relevant among the core user base who now tend to prefer TikTok. 

Because WhatsApp was acquired by Meta, concerns about privacy, data sharing and the potential appearance of targeted advertising have become visible. It is dependent on an internet connection and requires a valid phone number, which some are uncomfortable giving up. Because of their end-to-end encryption, it can be hard to control false information. Finally, it can consume significant storage space on devices. However, even with these limitations, WhatsApp continues to be the most popular messaging app with more than 2 billion global users and may offer Meta an opportunity to reverse some of their negative in-market perceptions.  

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FINAL THOUGHTS

Having a brand that inspires usually means that an exceptionally strong brand relationship has been established. Inspiration is associated with having momentum in the marketplace, an engaging offering that is unique, self-expressive benefits and an absence of negatives. Want to learn more about the most relevant brands in the U.S. Download the Relentlessly Relevant Brands report today. 

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Winning Hearts and Minds in Financial Services: The Imperatives to Amplifying Purpose

Purpose isn’t a mere sales tactic; it’s how you forge deep trust with your organization’s stakeholders. 

In a world where trust in financial institutions is being shaken up and consumers have more options than ever, organizations must tap into their purpose to assure they can be counted on for more than high-quality products and services.  

As Prophet’s Vice Chairman David Aaker states in his latest book, “The new purpose-driven revolution is leading firms beyond a focus on growing sales, profits, and shareholder return to having a business purpose that does more.” This shift should come as no surprise given what we know about purpose’s powerful influence on business outcomes: Purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction.  

Research shows that purpose-related drivers rise to the top in motivating consumer choice – especially in financial services. Prophet’s 2023 Relentlessly Relevant Brands report found that consumers are shifting to brands that spark an emotional connection—reaching beyond functional needs. And we’re not the only ones tracking this trend: IBM and the National Retail Federation found that, for the first time, more consumers are driven by purpose than by value. 

But simply having a purpose does not move the needle. To effectively build trust and harness the power of purpose, organizations must amplify their purpose. It must be fully integrated into the business, showing up in key moments and being championed authentically by employees—otherwise, it’s just lip service that leaves consumers doubting that the organization truly delivers on its promises.  

In our research, we found there are four key imperatives financial services organizations must work toward to effectively amplify and deliver on their purpose: 

1. Have a clear and inspiring purpose. 

Taking the first step means clearly defining your organization’s purpose. It should be both authentic while also being aspirational, meaningful, and engaging for all relevant stakeholders (e.g., consumers, investors, and employees). Your organization’s purpose should be clear enough that it can be used as a locus for decision-making. Once it’s clearly defined, time and resources must be invested to socialize it internally. Employees should be able to not only understand your organization’s purpose, but easily reference and use it in their daily work.  

What this looks like: 

Edward Jones recently made a significant investment in defining their purpose, working to create an authentic, clear, and compelling North star for their organization. Beyond just crafting an inspiring purpose statement, they Identified clear purpose impact areas to focus their work. 

Edward Jones’ purpose is to “partner for positive impact by improving the lives of their clients and colleagues and bettering their communities and society.” They achieve this by focusing on three key areas: partnering for lasting financial strength, promoting healthier futures, and advancing inclusive growth.  

Questions you might ask about your organization’s purpose: 

  • Is it clearly defined? 
  • Is it relevant to key stakeholders? 
  • Is it clear enough to guide decision making? 
  • Do employees know it and understand how their role contributes to delivering against it? 

2. Own your purpose. 

Don’t outsource purpose through philanthropy. Instead, embed it across the organization and ways of working. Leaders at all levels should be taking actionable steps to integrate your organization’s purpose into everyday operations, making it easy for employees to action against it in their daily lives. Purpose should be inherent to each project and every team, not a siloed effort or initiative.  

What this looks like: 

FinTech Current’s purpose is to “create better financial outcomes for more people.” They don’t just talk about it—they deliver on it through their product. Believing that legacy banks constrain consumers, Current moves consumers forward by helping them make the most of what they have, specifically by removing all fees (minimum fees, overdraft fees, transfer fees, ATM fees, etc.), expediting direct deposits and simplifying saving through Savings Pods and Round-Ups. 

Questions you might ask about your organization’s purpose: 

  • Is it being outsourced (e.g., focused on delivery through philanthropic donations alone)? 
  • How is it being actioned against in day-to-day operations?
  • Are there metrics in place to measure progress as it relates to delivering on purpose?  

3. Build the capabilities to deliver on your purpose. 

Purpose must be engrained into your organization’s operating model, guiding each change and transformation. The operating model should be organized to hold leaders and teams accountable for delivering on purpose through incentives and business structures. Additionally, employees should be equipped with the right tools and skillsets to effectively live out the organization’s purpose.  

What this looks like: 

Mastercard’s purpose is “connecting everyone to priceless possibilities.” To help employees deliver on their purpose, Mastercard created a new compensation model that ties bonus calculations to the organization’s performance on purpose across three key areas: carbon neutrality, financial inclusion, and gender pay parity.   

Questions you might ask about your organization’s purpose: 

  • Are employees adequately incentivized to deliver on it? 
  • What tools and skills are needed to equip employees to deliver on it?  
  • Is it a central consideration in business decisions? 

4. Ensure that your purpose shows up in key moments. 

After establishing purpose as a foundational component to how your organization operates, it’s time for stakeholders to feel its impact. Employees, consumers, and investors should be able to experience your organization’s purpose firsthand—whether through communications, experiences or other touchpoints. When purpose shows up in key moments, internal and external stakeholders are inspired to join in, contribute and learn more.  

What this looks like: 

USAA’s purpose is to “empower members to achieve financial security through highly competitive products, exceptional service and trusted advice,” and “be the #1 choice for the military community and their families.” One way they bring this to life is through their annual Poppy Wall of Honor and other Memorial Day-related installations. Aligning closely with their purpose, USAA uses their Poppy Wall of Honor to help raise awareness of the true meaning of Memorial Day and provide visitors of the National Mall an opportunity to remember the service members who have died in service to our nation since World War I. Throughout the year, USAA’s Memorial Day microsite allows users to remember heroes, visit the virtual Poppy Wall and honor heroes through action.  

Questions you might ask yourself: 

  • How is it being activated with both internal and external stakeholders? 
  • How does it show up in the moments that matter for employees, investors and consumers? 

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Simply put, financial services organizations must do more than just have a purpose to build trust with consumers. Recent shakeups across the Industry elevate the need for companies to put their purpose into action, amplifying it across all levels of the organization and creating a shared experience for all stakeholders alike.  

Contact us to learn more about how to develop and put an authenticate purpose Into action for your organization. organization’s purpose to life and put it into action. 

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Creating a More Sustainable Employee Value Proposition

Purpose has power. Learn how ESG can help retain and engage your employees.

Earlier this year, Meta, Facebook’s parent company, completed its second round of layoffs in 2023, with a third wave planned for May.  

Meta is not alone. Alphabet, Google’s parent company, laid off 12,000 people this year, its largest reduction ever. Amazon has eliminated 27,000 jobs. And Disney plans to reduce its total workforce by 7,000. Some experts anticipate that one out of three companies plans to cut 30% or more of their people in 2023. 

Downsizing isn’t just rough on those who are laid off. Researchers found that `survivors‘ in companies with reductions experienced a 41% decline in job satisfaction, a 36% dip in organizational commitment and a 20% drop in job performance. 

Yet, the talent war still rages in other areas of the economy. “In 2023, talent will become one of our top priorities,” said a large accounting firm recently.  

“Our leadership focus will be on ensuring we have a clear employer value proposition, on providing the right learning culture, offering the necessary flexibility, and on leading with purpose.”  

Growth in the renewable energy sector is outstripping the leadership talent pool, forcing companies into more imaginative talent strategies. Healthcare, too, faces a worsening shortage.  

Regardless of whether your company is hiring or in retention mode, your Employee Value Proposition (EVP) attracts employees, gives them a reason to stay and is critically important to future growth. And some companies are sitting on a secret weapon: Their environmental, social and governance (ESG) policies. 

ESG Plays a Crucial Role in Employee Engagement 

While most businesses know how vital an EVP is, with 86% of human resources executives naming it a top priority in a recent study, many are missing the opportunity to include ESG policies. 

ESG elements are a significant factor in employees’ decision to join, stay or leave a company: 

  • 58% of employees consider a company’s social and environmental commitments when deciding where to work.  
  • Employees are three times more likely to stay and 1.4 times more engaged at what they consider purpose-driven organizations. 
  • 93% of employees who believe their company is making a strong positive impact on the world say they plan to stay in their jobs. Of workers who disagree with that statement, only 43% plan to remain with their employer. 

And integrating ESG and goals into an organization’s EVP can also help employers gain the upper hand in acquiring and retaining Gen Z and Millennial employees.  

For example, 64% of Gen Z workers say the companies they work for must act on environmental issues. For Millennials, 96% cite sustainability as a key issue, and one in four say they’d quit if they found out their company had a poor environmental record. Women, people with higher incomes and those with higher levels of education are also significantly more likely to choose ethical employers.  

Three Ways to Infuse ESG Strategies Into Your EVP 

1. Put your ESG goals and achievements center stage  

Companies can do more to communicate sustainability achievements via social media and websites, increasing visibility to current and future employees. 

Starbucks anchors its EVP on the commitment to “inspire positive change in the world while you grow in your career and in your community.” One way it demonstrates that is by offering the Starbucks Greener Apron program, a partnership with Arizona State University. This program helps employees learn about global sustainability practices and create personal pledges to support them. 

2. Make ESG part of the candidate’s experience  

Companies can show how they bring ESG initiatives to life by connecting prospective talent with employees deeply engaged in sustainability and social programs. They can also infuse interview guides with questions that test affinity to ESG goals or dedicate time in the “pitch” materials to highlight ESG opportunities for perspectives.  

Slack, for instance, focuses on how it has reworked and implemented diversity, equity and inclusion policies into the candidate experience. It started by sharing the company’s current ethnic and gender makeup and strategies for improvement. 

 Slack implemented some of these experiences to rework and promote more equitable hiring practices, including revising job descriptions with more inclusive phrases like “care deeply” and “build relationships,” eliminating whiteboard interviews and replacing them with blind code reviews and using co-worker role-plays for anyone conducting interviews. 

3. Make your employees part of your ESG program 

Organizations can mobilize initiatives to engage existing employees in contributing to ESG goals and celebrate those “from the front lines” stories, especially via social media.  

Chipotle delivers its “Cultivate a Better World” EVP to employees all the time, including using more local produce in restaurants. Employee-led organizations provide millions of fresh food to local food banks. It funds fledgling Agri-Tech businesses, encourages micro-producers and helps provide meals for food-insecure members of the LGBTQIA community. It further fosters accountability by linking executives’ annual bonuses to ESG strides. This compensation plan is another way it hopes to champion responsible leadership and sustainable solutions. 

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ESG can become a company’s secret weapon in modernizing its EVP and revitalizing its culture, regardless of the economic climate. People want to work for companies making the world a better place, which is why infusing your EVP with your ESG strategy can help strengthen your recruitment and retention efforts.

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Your M&A is Likely Hurting Your M&S (Martech & Salestech)

Avoid falling victim to cost-focused consolidation efforts that potentially limit growth. 

Historically, corporate mergers and acquisitions (M&A) were undertaken to help companies scale, find cost efficiencies, gain access to distribution and block competitors. In the past decade, we’ve seen a digitally driven shift in M&A activity, with the focus moving away from barriers and efficiencies, and towards true growth: leveraging digital technology and business models to offer better products, more engaging experiences and more effective ways of working. 

Beware of Antiquated Approaches to Integrated Management Offices 

The most important role in a successful M&A event is the Integration Management Office, or “IMO”.  With the digital-centric M&A model, IMOs need to change their approach from an operational focus of pruning off duplicate assets, consolidating teams and looking for organizational synergy, to a strategic rethinking of the firm’s approach to growth. 

One critical foundation of growth that IMOs typically mismanage during M&A activity is the MarTech & SalesTech infrastructure. IMOs often focus on identifying and eliminating duplication of systems and subsequent cost reduction but don’t proactively explore improvements such as tighter cross-system integrations, cleaner data or more thoughtful process automation. While these sound like minor operational factors, they can become the underpinnings of more effective customer engagement strategies, compelling user experiences and powerful upsell/cross-sell/retention initiatives. 

If organizations aren’t careful, MarTech and SalesTech can fall victim to cost-focused consolidation efforts and might come out of an M&A deal tied to systems that will suffocate growth. Here’s how to spot these dangers and avoid them. 

Do Not Assume Your Options are Binary 

We have yet to see a sales or marketing team 100% satisfied with their existing tech stacks and workflows. After a deal, you will have to invest time and money into consolidating and migrating systems. You will also have a large pool of vendors -many of which you have great interpersonal relationships with- feeling the pressure to hold onto their accounts. 

Fight the urge to pick from a subset of existing vendors. You may find yourself with a system that is only designed for half of the company, or unable to scale into the new larger enterprise. Take the time to step back and make a holistic and strategic set of choices before diving into a large migration effort. It’s better to be at the bottom of the right ladder than halfway up the wrong one. As Amber Sundell, head of demand generation at Merative, a data and technology healthcare company, puts it, “We might have fewer marketing and sales systems these days, but everyone in this space continues to feel those budget and data standardization cuts/missteps.” 

Clarify Your Desired Future State and Look Backwards  

Your CEO and the deal team likely won’t stop talking about this future utopia of the new combined organization. That utopia two, five, or ten years from now probably doesn’t have tech stacks designed when the two companies were operating with different intentions.  

For example, lead handling systems typically put potential customers into different categories or types. What if those categories are different between the two merging companies? And what if those categories are hard-coded into all sales flows and reporting systems — how will you operate? 

Or what if your organization uses Platform X for email campaign management, and the acquired firm uses Platform Y, but they both use different sets of templates and other source data to trigger the message? Is it possible to send a demand generation campaign or order confirmation message without a manual workaround? 

These sorts of “differences” are assumed and understood when framing an M&A event, but rarely is there budgeting for the hard work of standardizing data taxonomies, refactoring (reducing) templates, or re-integrating systems outside of core billing. What starts as potential synergy quickly becomes invisible technical debt. Often, that debt becomes a long-term liability for the resulting Marketing or Sales Operations Teams, and it persists for years beyond the merger event. 

You are Building Pipes and Plumbing, not a Funnel  

If you’re not already operating in a multi-business unit enterprise, the latest acquisition might spur it, or will in the near future.  There is already an invisible wall between marketing and sales on a variety of dimensions, incentives, cultures, skills, styles, etc. And as you move towards –or deeper into – a multi-BU enterprise, you’ll likely have fragmented sales teams and centralized and decentralized marketing teams. From a demand gen perspective, you need to stop thinking of lead flows as a funnel, and more like pipes and plumbing. And don’t underestimate the people risks associated with M&A activities. Sundell states, “The employees who are redistributed or leave the organization after an integration, take legacy knowledge with them. You also find yourself missing reasons why things were or were not done in a certain way.” 

How do you move forward with this approach? Examine each joint and pipe and look for leaks. Measure the pressure and flow rate at each valve and faucet.  

And check the temperature frequently. 

Translation: Standardize data formats and integration points to make sure systems are talking and information flows correctly from one step to the next. Use reporting to capture meaningful operational metrics and KPIs for each overall process and important sub-step. And use ROI analyses with clear and simple dashboards to know when the process is working and the effort was successful. 

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It is said that most mergers and acquisitions fail. Many believe that it is because deals are normally predicated on growth, but the integration process is dominated by cost-related decisions.  The answer is both, and most importantly, your Salestech and Martech are your biggest demand gen investments. There will be opportunities to combine stacks to lower ongoing operating expenses.  But don’t lose the opportunity to step back and fully re-evaluate your platforms to maximize your demand gen efforts to support the growth of the newly combined enterprise. 

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Four Ways to Futureproof and Build Resilience Through Innovation in Southeast Asia 

Building innovation for resilience is no longer a good to have, but a must-have for companies in Southeast Asia.

In today’s world of volatility, uncertainty, complexity and ambiguity (VUCA), businesses continue to be challenged and their resilience tested. Innovation is increasingly crucial for enhancing resilience, yet most organizations still see tension between the two instead of the potential for a more positive business outcome. In our latest global research and report, Building Business Resilience Through Innovation, we found that the most successful organizations are using innovation to drive business resilience.  

Southeast Asia (SEA), one of the world’s fastest-growing regions, faces unique challenges such as limited resources, inadequate infrastructure, and complex cultural and socio-economic contexts. Yet these constraints are also the reasons why the region is one of the most creative in problem-solving due to its frugal yet bold innovation culture. In fact, according to the Global Innovation Index 2022, SEA is one of the only regions globally closing the gap on North America and Europe in terms of innovation and has become a hotbed for tech startups and a home to a number of highly successful companies with soaring valuations.  

Leading the pack is Singapore which positions itself as a hub for innovation in the SEA region. With plans to invest SG$24 billion ($18.1 billion USD) over the next three years to help local businesses build “deep, future-ready” capabilities for innovation and transformation. The country has already attracted Google, Dyson, Visa and Hyundai which have chosen to set up their APAC headquarters and innovation labs in Singapore.  

Our research further unveils that several companies in SEA  innovate better than many global players by leveraging diverse innovation techniques across an organization. Here are four successful innovation techniques we uncovered: 

1. Embrace a Lean Startup Mentality to Drive Organization-wide Innovation 

Large enterprises today possess years of built-up legacy practices and a bureaucracy that is often hard to change. A lean startup mentality allows large enterprises to operate more nimbly and flexibly, adapting to business needs or customer feedback in real time. This is achieved by organizing traditionally large innovation teams into pod-like working squads, each with the goal of building new products, testing features, and validating ideas in an agile manner. Firms in Singapore are using this tactic well and are in fact, twice as likely to use pod-like team structures / decentralized teams than in the US and UK (27% vs 13%).  

For example, MB Bank, a leading bank in Vietnam, spun off a business unit when it embarked on its digital banking journey. To accelerate digital transformation, the digital bank operated much like a lean and agile startup to ramp up its digital product development process. The new digital banking model was then reverse-engineered across the legacy bank as part of the enterprise-wide transformation. Today, MB is highly regarded as one of the most innovative banks in Vietnam and has close to a thousand employees in its digital, IT and tech divisions working in pod-like structures to continuously deliver products ahead of its competition. It is therefore no surprise that MB digital banking has acquired close to 20 million retail customers today in a short period of just 3 years since its launch and is the only banking app in Apple’s Top 10 Apps two years in a row. Learn more about Prophet’s work with MB Bank.  

In Singapore, DBS, one of Asia’s most digitally advanced and innovative banks, set up DBS Asia X (DAX), a collaborative innovation facility where it runs all open innovation-related initiatives, supported by partners, startups, and its other innovation teams such as DBS Ventures and DBS Xchange. Separate from its headquarters in the central business district, employees and external resources in this facility work in pod-like teams with startup mentalities to design and deliver digital products that help DBS remain one of the top digital banks in the world. 

Takeaway: Large traditional organizations must break down the walls of bureaucracy, and function like startups to stay agile and ahead of the innovation curve. 

2. Leverage Open Innovation to Expand Innovation Horizons 

Open innovation is an approach that involves working with external partners to generate and implement new ideas. Instead of relying solely on internal resources, companies engage with a variety of external stakeholders, such as customers, suppliers, universities, startups, and other companies, to develop new products, services and processes. Our research shows that organizations in Singapore are more likely to have formal innovation incubation programs than in the West (35% vs 15%). 

Singapore’s government remains one of the most innovative countries in its “Smart Nation” endeavor and continues to lead by example when it comes to open innovation. The Infocomm Media Development Authority (IMDA), a part of Singapore’s Ministry of Communications and Information, promotes open innovation through its Open Innovation Platform which offers co-funding support for prototyping and deployment of ideas from the public.  

Across Singapore and Hong Kong, DBS has also been running several pre-accelerator programs, which allows them to stay connected with new, emerging fintech; resulting in new mobile features such as conversational banking, which is a combination of AI technologies from fintech startups such as Moneythor, V-Key and Kasisto.  

The Malaysia-based airline, AirAsia, established Redbeat Ventures to expand its offerings beyond flights to include other travel-related products, such as hotels and travel insurance. The company also organized hackathons to generate ideas and solutions for specific challenges, inviting employees, customers and external partners to participate and providing resources and support to help teams prototype and test their ideas. 

Takeaway: Organizations should adopt open innovation and increased collaboration as a strategic approach to tap into the expertise of external partners and stakeholders, and drive innovation, growth, and competitive advantage. 

3. Adopt Design Thinking to build and meet dynamic consumer needs 

Many innovation initiatives fail due to a lack of structure and process when developing new services and products. This is where design thinking comes in. It is a powerful tool for fostering innovation by understanding user needs, questioning existing assumptions, reframing problems, and generating pioneering solutions that can be prototyped and tested. Design thinking methods are well implemented by firms, especially in Singapore, and twice as likely to use this tactic for innovation as compared to the West (39% vs 23%). 

CP Group, a Thai conglomerate with operations in agribusiness, retail, and telecommunications, embraced design thinking boldly when they set up True Digital Academy in partnership with the US-based design thinking institute, General Assembly. The Academy doubles down on the adoption of design thinking for innovating new products and services to meet shifting consumer needs. In fact, CP group’s newly launched line of high-protein instant noodles targeted at health-conscious consumers, and a plant-based brand, MEAT-ZERO is the result of the new design thinking approach. The Group’s ambition is to make MEAT-ZERO one of the top three alternative meat brands in the world by 2026. 

Unilever is another example of a company that leverages design thinking to drive innovation in its target markets and has succeeded in being the first in market for many of its hair care products. In recent years, the proportion of Indonesian women wearing the hijab has grown significantly (~ 20% since 2018). In response, Unilever began increasing efforts to innovate hair care via design thinking frameworks to better serve this target segment, by taking into consideration the human truths such as pain points and needs of the hair care routine across various hijaber personas. By leveraging design thinking, Unilever can better serve the ever-changing needs of its target markets and customers.  

Takeaway: The use of design thinking to innovate and adapt to shifting consumer needs and market trends, coupled with a long-term commitment to innovation, is a key driver of business resilience and growth. 

4. Leverage Scenario Planning to Stay Future Proof 

In the wake of increased economic unpredictability and global instability, scenario planning has become more important than ever. Scenario planning allows organizations to prepare for potential future events or unforeseen market changes. For example, DBS Bank used scenario planning to anticipate the impact of digital disruption on the banking industry and developed a digital transformation roadmap to stay ahead of the curve. It also developed a “Future of Work” scenario to anticipate how work and workplaces may change in the future and are using the scenario to inform their HR policies and strategies. 

Elsewhere in Singapore, Keppel Corporation assessed multiple challenges such as overcapacity, low oil prices, prolonged downturn and increased competition from China. With scenario planning, Keppel developed the “2030 Energy Scenario” assessment which involved solutions such as diversifying their business into areas such as renewables and data centers to reduce their dependence on the oil and gas industry.  

Takeaway: To future-proof their business, organizations must incorporate scenario planning into their strategy development process to identify potential risks and opportunities to develop contingency plans to mitigate risks. 

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Forward thinking companies in SEA are leveraging multiple techniques in tandem to stay ahead, de-risk their business, and win against competitors. Innovation, however, doesn’t start and end within the company – tapping into both internal and external resources and expertise can be crucial, especially during this period of VUCA. Building innovation for resilience is no longer a nice to have, but a must-have for all organizations. Embracing an innovation culture and integrating an innovative way of life takes time and patience. Most importantly, organizations need to foster the right innovation approach and tools in a structured manner to achieve the desired goals and results.  

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3 Ways to Transform Customer Engagement for the Future of Medtech  

Customer engagement models are essential to maintain a thriving business, learn how Medtech firms can get theirs fit for purpose.

For a long time, the customer relationship between MedTech companies and healthcare professionals (HCPs), as well as healthcare providers (HPs), has been changing. The Medtech industry, like many others in the past couple of years, has been faced with an acceleration of nascent changes such as digital transformation and an increase in customer expectations – causing trends to solidify and become the new normal. Now, with basic assumptions around interactions and relationship building fundamentally altered, traditional customer engagement models can no longer deliver against their ambition for the future. We have witnessed different approaches by Medtech companies, some learning from inside and others from outside the healthcare space, to rethink their approach to customer engagement and how to make it more future fit.  

Based on our experience, we have identified three crucial ways to transform customer engagement strategies so businesses can succeed in this new world of Medtech. 

Hybrid Engagement with a Purpose 

COVID-19 has permanently changed how the healthcare system works, forcing Medtech to quickly shift to remote engagements and digitize offline processes. Now, that the pandemic is more under control, it is apparent that there is no way back. Today’s customer engagement preferences have changed.  

So, what does this mean for Medtech moving forward?  

Medtech needs to engage with customers in a blended way – balancing the online and offline worlds – making permanent use of remote channels while at the same time recognizing the points at which a more human interaction makes a difference. In-person interactions remain a valid and irreplaceable tool at various points in the customer journey, but Medtech companies need to be targeted and purposeful in which types of interactions they favor for this and leveraging virtual interactions and multi-channel where relevant and feasible. 

How to achieve a more hybrid engagement model? 

  • Shift your mindset from sales to customer: One crucial element in our work in this space is about the organizational mindset shift – from a sales funnel mindset that focuses on closing the “deal”, to more of a customer journey mindset, where building longer-term relationships is of higher priority. The closing of a sale no longer marks the end of the journey, it is only one additional step in the MedTech-HCP/HP relationship.
  • Adapt engagement approach to customer type and journey stage: Different customer groups have different needs and preferences at different stages of the customer journey – understanding the journey both from a funnel perspective (awareness to conversion to loyalty/recommendation), but also from a touch point perspective (I.e. which touchpoints does a customer use across their journey). For instance, a hospital’s procurement lead will have different engagement needs than a physician who owns a single practice. Vivantes, the biggest hospital system in Germany, has different needs than a rural doctor. Understanding these needs and preferences is key to identifying which type of interaction adds the most value at each point along the customer journey.  
  • Capture individual customer preferences: Medtech should focus on customer preferences and align with them where possible. Accurate tagging in CRM systems helps paint a stronger picture of customer understanding and personalization. It is important that this knowledge is shared within the Medtech organization so that all stakeholders act upon it accordingly (sales reps from different divisions, marketing, etc). 
  • Ensure engagement and experiences align seamlessly: Individual high-quality interactions are relevant but diminished if a customer feels that follow-on connections are disjointed. A set of well-orchestrated interactions across the journey can improve the overall customer experience. MedTech organizations should work towards ensuring sales and marketing have a holistic view of the customer and follow through on the captured learnings. 

Optimized Interactions in the Virtual Space 

The pandemic has forced many to embrace tools they weren’t previously comfortable with, and these changes are permanent. The use of online tools has grown – and HCPs are using online information sources more than ever. The key benefits of more digital interactions are around convenience – research shows aspects such as flexibility of timing, less travel, less impact on workload and a more extensive selection of webinars instead of conferences. But purely digital interactions also have their shortcomings: loss of personal relationships with the sales reps, inability to network and overall, less engagement between reps and their customers. The focus should be on optimizing virtual interactions and reducing these drawbacks.  

With so many competing demands on attention, nurturing and managing leads with targeted engagement is even more relevant in categories where the typical product lifespan is longer, given fewer windows of opportunity to sell the product. And digital channels allow for much more customized and recurrent interactions that permit Medtech to stay within the relevant consideration set. 

Excellence in virtual events is driven by recognizing where efforts should be refocused when designing the experience. The key is to ensure virtual interactions are optimized to take advantage of the technologies used to engage customers, rather than be seen as a lesser alternative to in-person interaction. How can that be done? 

  • Update and optimize content online: While online sessions are usually seen as more convenient, it is also harder to keep the participants engaged and focused. Digitizing content used in offline interactions was the first step many Medtechs took – and quickly found that this was not sufficient. The content needs to be fully adapted to fit different channels and delivery mechanisms, in terms of level of detail, structure etc. 
  • Use data and insights to underpin decisions: One benefit of digital is its measurability. Data and insights need to be used to ‘test and learn’ when selecting and enhancing channels, content and delivery methods. Establishing the right KPIs and monitoring them is key. Virtual interactions provide an excellent opportunity to collect further customer insights, which can help inform both future remote and in-person interactions.
  • Reimagine interactions to facilitate discussion: Oftentimes, virtual interactions don’t provide the same opportunities for participants to connect with peers and share experiences. Duplicating offline approaches into an online channel does not work, and MedTechs need to refocus their activities accordingly. Optimized virtual events prioritize connection and community elements while reducing the relevance of purely communicational elements.  

Content is King (even more than before) 

Customers are looking for convenient ways to educate themselves on specific topics. An individual Medtech’s authority in specific fields can make them a trusted source to provide education or even build connections in a non-commercial way. But they are not alone in this endeavor, and companies are feeling the pressure to deliver high-quality, relevant digital content like never before. While not all companies can keep up with the accelerated pace of content creation, Prophet’s Altimeter colleagues found that those that are successful in meeting this demand have implemented an “Agile Content System.” For many Medtechs in particular, and healthcare companies in general, internal compliance processes  are a key obstacle to timely content creation, but there are simple ways to improve this:  

  • Ensure technology and workflows are working to streamline approval processes: Approval and compliance processes need to be structured in a way that allows for speedy, efficient publishing. In healthcare specifically, reviews by multiple stakeholder groups such as the ethics boards, legal teams and subject matter experts can slow down the approval process significantly. A modular content creation approach can help, as well as clearer content ownership and roles. 
  • Restructure content teams for greater agility: A centralized content team does not necessarily work for all Medtech firms. Depending on the key objective and business need (i.e. brand awareness building vs demand/revenue generation), the ideal structure should be set up but it’s essential they work together on a shared agenda. Our research shows that the most effective organizations balance both brand and demand.
  • Set bolder, clearer goals that go beyond brand: Oftentimes, Medtech organizations are focused on content to drive brand awareness. With the changing preferences of their customers, there is a need to revise this approach. This shift in thought leadership (i.e. Siemens Healthineers Insights series or their Healthcare Challenges podcast), also requires a review of the KPIs to ensure the correct content metrics are being tracked and reported on. 

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Customer engagement is a critical aspect of any business, and this is no exception in the Medtech industry. The complex ecosystem and the diversity of customers do not make this an easy task for Medtech organizations, but there are strategies that can help to transform and succeed in this new world of customer engagement, enabling Medtechs to become the customer’s first choice of engagement. 

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Bringing Trust Back to Barclays: When a Strong Social Purpose Pays Off 

Not all brands create purpose-led products. Winning in the purpose era sometimes means using branded signature social programs.

There is a general acceptance that an organization’s effective social effort should also boost business, but many suggest that the route to winning in the purpose era is by directly helping society through efforts like manufacturing wind turbines, distributing healthy food or saving costs from reduced energy use. The problem is that few companies make wind turbines or offer organic food, and energy use goals over time become less and less dramatic in part because incremental progress gets harder.  

An alternative is to use branded signature social programs, whether internal or through a partnership with an external nonprofit, to advance the brand driving the business by providing energy and visibility, an image lift, and engagement opportunities for employees and other stakeholders.  

A reasonable question that comes to mind—can a signature program truly help a business that may not be closely related to the program? There is research in psychology and elsewhere that supports the belief that elements of an admired social program can affect the perception and liking for the sponsoring brand. However, more definitive and rare evidence comes from brands that have demonstrated the impact of a signature social program on a brand in the field. An example is Barclays, that conducted what is termed a “before-after: experiment,” where relevant measures such as perceived trust are taken before the “treatment,” in this case the communication of stories around new social programs and compared to those same measures after.  

Barclays is a role model for how to use branded signature social programs to regain trust, a key brand dimension in the financial services industry. The Barclays brand was damaged by the 2008 financial crisis with accusations that Barclays had manipulated key interest rates. In 2012, the trust level for Barclays in the United Kingdom was well below that of its competitors despite several years of PR and advertising arguing that the “new” Barclays should be trusted. It is not a stretch to conclude that Barclays was one of the least trusted brands in a heavily mistrusted sector in the U.K., Needing a restart, Barclays created a new brand purpose: “Helping people achieve their ambitions—in the right way.”    

The 140,000-employee base was encouraged to create programs responsive to the new purpose. Dozens of programs emerged. The Digital Eagles was created by a 17-person employee group (a decade later the team had grown to 17,000 employees) with a mission to teach the public, especially the older cohort, about surviving and even thriving in the digital world. Stories about how the Digital Eagles and other programs affected real people helped shine a light on the social purpose initiatives at Barclays. 

One story featured Steve Rich, a sports development officer, who had lost his ability to play football (soccer to Americans) because of a car accident. However, he could participate in “walking football”—usually played with a six-person team on a small field with no running—and again experience the joy of the sport. Wanting to help others do the same, he decided to raise awareness of walking football and turn it into a nationwide game in Britain. With the help of the Digital Eagles, Rich created a website that linked over 400 teams across the country and connected individuals with teams. It was partly responsible for the growing interest the sport has generated, the emergence of a national tournament, and the ability of people to connect with former football mates. His accomplishments and personal regeneration are inspiring indeed. 

Employees were inspired and energized by the programs driven by Barclay’s new higher purpose. And customers and prospective customers changed their perceptions of the brand (as reported by the Edelman Financial Trust Barometer for 2014 summarized in the WARC Study noted above). Two years after the emergence of the signature stories, such as those involving the Digital Eagles, trust in Barclays was up 33%, consideration was up 130%, the emotional connection was up 35% (versus 5% for the category average) and “reassurance that your finances are secure” was up 46%. The new campaign drove six times as much change in trust and five times as much change in consideration as the descriptive “this is the new Barclays” campaign that preceded it. In addition, Barclays received 5,000 positive mentions in the press.  

Barclays vividly demonstrates that a signature social program such as the Digital Eagles can lift a brand and is uniquely capable of doing so. There is little doubt that a sharp increase in trust and consideration means an increase in loyalty and even the size of the customer base. Barclays explicitly observes in the 2021 Barclays PLC Strategic Report that offering a complete menu of services to customers is dependent on the earned trust attached to the Barclays brand. The further implication is the Digital Eagles will be supported over decades because its impact on the Barclays brand makes the program a business asset.  

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In the purpose era, trust is an even more valued attribute and, when lost, it is hard to earn back. Barclays demonstrates that communicating different intentions and programs does not move the trust needle. But the right social purpose and program such as the Digital Eagles told with emotional stories can climb the hill.  

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Future Back Planning: Maximizing Future Growth Opportunities 

Future back planning is key to unlocking uncommon growth during times of economic uncertainty. 

Future back planning is key to unlocking uncommon growth during times of economic uncertainty. 

In our latest global research report, Building Business Resilience Through Innovation, we found that a leading barrier to increasing innovation efforts is that the organization lacks a long-term planning process. Unfortunately for many companies, this has only worsened in the last few years as reactive thinking characterized by the pandemic era.   

As innovation leaders emerge from this reactive phase and begin to chart out the next few years of growth during a time of great economic uncertainty, it is essential to create a growth strategy that spans these three-time horizons.

Across these horizons, there is an inverse relationship between the investment in resources and the investment in strategic decisions. Running the business of today is resource intensive and requires operating with excellence with much less space for strategic exploration. In contrast, exploring the business’ target destination over the next five to ten years within a wide open divergence environment is time intensive. Due to the scarcity of resources, it often requires time-bound investment to collect data on the most relevant drivers of change, model potential scenarios that could unfold over time, and based on that, determine what new opportunities are worth further validation and investment.  

In Horizon 1, the existing value chain is used to optimize and scale the business, but in Horizon 3, the needed value chain will most likely be adjacent to today’s value chain. The inversion point of building the new value chain is challenging to manage because resources are ramping up as the ability to make strategic decisions is fading. At this point, the skills required to be successful change. It is operationally complex to get something to move through the inversion curve.   

If a business neglects Horizon 3 activities today, it sets itself up to be leapfrogged by the competition because it will not have invested in the assets and capabilities needed to act on emerging opportunities.

Future Back Helps Companies Maximize Growth Opportunities in Horizon 3  

While it is impossible to predict the future, market leaders and makers proactively anticipate preferred and disruptive future scenarios. The first step is understanding the most impactful drivers of change that will shape the future market landscape. Drivers of change come from a range of sources: the classic Porter’s Five Forces of suppliers, buyers, new entrants, substitutes and competitors that determine industry profitability, as well as macro-forces that are broader than industry boundaries, often categorized as social, technological, economic, environmental, and regulatory drivers (STEER).  

From doing future back work across industries, we have found three non-mutually exclusive factors that help us see around corners. Across these factors, emerging technology is critical in reshaping societal norms, enabling new interaction modes, and determining future profitability and competitive advantage sources. 

3 Non-MECE Factors that Shape the Future Market Landscape 

1. The Overton Window describes the range of policies that are accepted by the mainstream at a given time and can be used to identify ideas on the threshold of gaining mainstream acceptance. For example, over the last 50 years, public acceptance of in-vitro fertilization (IVF) has rapidly increased as the availability of IVF technology has also grown. In 2021, fertility support startups raised $345M, up 35% from the previous year. Health systems and payors that anticipated this shift ten years ago were able to differentiate themselves within a rapidly growing market. However, with the overturning of Roe v. Wade, societal progress regarding IVF is now under threat. Industries heavily funded by the government, such as healthcare and clean energy, are also strongly shaped by changing societal norms. 

2. Behavioral shifts often emerge due to technological advancements that make it easier to do more with less or create new modes of interaction between humans and machines. For example, Figma’s significant innovation was being browser-first, with the ability to edit files in real-time in the cloud, allowing teams of developers, designers, and product managers to collaborate in one place efficiently.  
 
Adobe was late to the game of browser-first collaboration and, as a result, paid $20 billion to acquire Figma, which had roughly $400M in revenues at the time. The steep price was considered a solid investment given the future value of Figma’s product spaces. Thinking more broadly, technological advancements across the Internet of Things, artificial intelligence, artificial and virtual reality, and autonomous machines will enormously impact behavior and interaction modes, changing how we learn, work, collaborate and entertain ourselves.  

3. Business model shifts are often required to capitalize on or meet emerging technology demands, regulation, the economic environment, and ESG agendas. For example, Fundrise was the first company to crowdfund real estate investment successfully, and the founders did it by seeking the expertise of regulators from the beginning. Working with a former regulator, Ben Miller figured out how to use Regulation A to raise money from non-accredited investors, which was the first time anyone had ever done. Eventually, the regulation changed to Regulation A+, which allowed the company to raise more equity from non-accredited investors while streamlining the filing process. Still, at that point, Fundrise was already the category leader in a new market.

Four Questions to Determine a Company’s Options within the Future Market Landscape 

Once we understand the most impactful drivers of change, the next step is modeling the most viable opportunities for a specific company to pursue. We begin with four questions:  

1. How is a company encumbered and advantaged?  

This includes understanding a company’s options based on its funding and regulatory moats. Firms funded by unregulated capital have an entirely different set of options than firms funded by regulated capital. A venture capital-funded firm can take on much higher fixed costs to stand up a new capability without a near-term path to profitability. For example, the data cloud company Snowflake raised $2.1B over eleven rounds of funding since 2012 and isn’t expected to reach profitability until 2023.    

On the other hand, an advantage of being a large, publicly traded company is that it is easier to find suppliers and partners to test and validate Horizon 3 growth hypotheses with and bring new offerings to market. Along with understanding the implications of funding sources, it’s essential to know where margins come from today – is it from hardware, software, or services? Who has the most power in the value chain to extract more margin over time? What parts of a company’s existing product line, assets, and capabilities might serve as a moat? Does it have access to a rare resource on the supply side or a lock-in effect on the consumer side? Finally, is there a regulatory moat that will make it difficult to unseat an incumbent?   

2. Who has the preferred position in the market to launch and scale this idea?  

The most critical mindset of future back work is humility. We always assume that another player is better set up to execute an idea. The big four (Alphabet/Google, Amazon, Apple, Meta/ Facebook) dominate their innovation ecosystems due to their scale, network effects, and ability to buy entire markets. Firms operating within these ecosystems are often unlikely to win share-of-wallet among end consumers and are much more likely to succeed by playing a critical infrastructure or support role. We look at the role of aggregators and integrators in the innovation ecosystem to understand how parts of the market are consolidating and where technology is being abstracted away from the end user.   

3. Who is the player that can shut this idea down? 

As Archimedes said, “The shortest distance between two points is a straight line.” In highly regulated industries such as financial services and healthcare, a significant source of Horizon 3 growth is creating new business models based on the changing regulatory landscape. Like the Fundrise example, the founder of Coinbase realized that abiding by U.S. law rather than moving offshore could act as a long-term defendable moat for the company. With the collapse of FTX, that bet has already paid off.   

4. What has prevented this idea from being launched and adopted before? 

Is the idea on the threshold of becoming mainstream? Is there a consumer experience problem or a price-to-value problem? Or does capital not think it’s worth an investment? The inevitable endpoint of markets is to solve consumer problems rather than business and technical problems. Enterprise capital is good at solving Horizon 1 business problems, such as increasing conversion in existing channels, creating efficiencies, and increasing margins.  

On the other hand, venture capital is good at investing in long-plays that create new consumer markets because it has a risk appetite and is willing to be too early. Too early might mean taking on the cost of educating the market about a problem that they should have realized could be solved. For example, Netflix was loved for eliminating late fees (a consumer problem previously considered unavoidable in a physical rental market). Still, the company was perceived as shifting to a digital-first business model too quickly. Success in bridging the gap between its Horizon 3 digital-first business and its Horizon 1 DVD rental business required subsidizing the price of the new service for end consumers.   

The Mindset We Bring to Future Back Work 

The future back process combines design methodology (outside-in and hypothesis-led) with business rigor (commercial opportunity assessment with an asset-forward view of value-chain adjacencies and potential competitive moats).   

The mindset we apply to this work draws from design and consulting. We’ve distilled it into three design principles: 

Humble 

We begin this work by assuming that another player has a better solution as well as a preferred position in the market.  

Anti-fragile 

We create a durable portfolio of growth moves in order to hedge our bets, with the understanding that it is impossible to know exactly how the market will reshape over time. 

Effective collaboration  

You need to keep running the business of today while exploring what your business might be in the future. At the same time, your hypotheses around how the market might shift and what options are most attractive for your company are the entry point into this work. We design future back engagements to extract maximum input in the most time-efficient way by starting with stakeholder hypotheses, bringing in external experts to identify new opportunities and threats quickly, and then designing workshops and executive communications that bring your team along the right way at the right time. 

The Outcomes We Achieve Through Future Back Work 

There are three main outcomes that we have consistently achieved through this work: 

  1. Board-level alignment and buy-in on a future vision. For example, supporting the approval of a board-level, multi-hundred-million-dollar M&A strategy in order to create an entirely new product category. 
  2. Driving capital allocation for new business building. For example, on a recent project, this work led to a $5 billion acquisition as the centerpiece of a new business unit. 
  3. Updating the product roadmap to transition from now and near-term investments to decisions that will drive the next horizon of the business. 

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We would love to do this work with you. If you already have hypotheses on the future of your business, we can dive into a Future Back project to explore, validate, design and quantify those opportunities. If you know that your company needs a Horizon 3 growth strategy, but your leadership team isn’t bought in, we have interim steps to drive alignment among stakeholders while collecting initial hypotheses on potential sources of long-term growth. 

Interested in maximizing your future growth opportunities? Please get in touch. 

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