PEAKHow Great Companies Get Their Mojo from Maslow

Chip ConleyFounder & CEO

Joie de Vivre

Life, and business,is all about

where you payyour attention.

Just as people experience varying levels of fulfillment…

…so do companies.

JOB

CAREER

CALLING

My calling in life?

Create Joie de Vivre!

where you sleep.

You are…

Boutique hotels are mirrors for the aspirations of their customers and create an “Identity Refreshment”

Psychographics vs. Demographics

We grew into one of the three most prominent boutique hoteliers in the U.S. with 20 properties by the year 2000.

1

2

3

Creating a Unique Corporate Culture

Building an Enthusiastic Staff

Developing Strong Customer

Loyalty

Maintaining a Profitable &

Sustainable Business

4

Joie de Vivre Heart : Karmic Capitalism

“Service Profit Chain”

By early 2001, JDV was flying high.

MASLOW’S HIERARCHY OF NEEDS PYRAMID

PHYSIOLOGICAL

SAFETY

SOCIAL / BELONGING

SELFACTUALIZATION

ESTEEM

Joie de Vivre = Self Actualization

Where “peak experiences” occur

If humans aspire to self-actualization, why can’t companies— which are really just a collection of people —

aspire to this peak, too?

WHAT DOES A SELF-ACTUALIZED COMPANY LOOK LIKE?

A great leader knows how to tap into potential and actualize it into reality.

A great business leader deeply understands the motivations of their employees,

customers and investors.

HOTEL HIERARCHY OF NEEDS PYRAMID

A COMFORTABLE AND CLEAN BED

A QUIET AND SAFE ROOM

RESPONSIVE STAFF SERVICE

IDENTITYREFRESHMENT

FEELING LIKE A VIP ESTEEM

SELFACTUALIZATION

SOCIAL/BELONGING

SAFETY

PHYSICAL

TRANSFORMATION PYRAMID

SURVIVE

(Physiological & Safety)

SUCCEED

(Social /Belonging & Esteem)

TRANSFORM

(Self-Actualization)

Employee Pyramid

Which asset does the hotel industry value more?

EMPLOYEE RELATIONSHIP TRUTH

MONEY

CREATES:

BASE MOTIVATION

RECOGNITION

INSPIRATIONMEANING

LOYALTY

(Survival)

(Succeed)

(Transform)

EMPLOYEE RELATIONSHIP TRUTH

MONEY

CREATES:

BASE MOTIVATION

RECOGNITION

INSPIRATIONMEANING

LOYALTY

CALLING

JOB

CAREER

(Succeed)

(Survival)

(Transform)

JDV Example

Finding one’s calling by looking at one’spurpose and its impact, not the task

“If I had asked my customers what they wanted, they would have said a faster horse.” Henry Ford

Customer Pyramid

CUSTOMER RELATIONSHIP TRUTH

MEETS EXPECTATIONS

CREATES:

SATISFACTION

MEETS DESIRES

EVANGELISMMEETS UNRECOGNIZED

NEEDS

COMMITMENT

(Succeed)

(Survival)

(Transform)

Apple Retail Stores

Procare/ Genius Bar

Freedom of Expression

“Clubhouse” where you can communicate

your identity

Harley Owner Groups (H.O.G.)

Harley-Davidson

Nice Product Displays / Good Service Rider’s Edge

Any company can create their own Customer Pyramid

1. Help your customers meet theirhighest goals.

• Nike: “Just Do It.”

• Home Depot: “You can do it.We can help.”

• Bank of America:“Keep the Change”Program

Bank of America:“Keep the Change” Program

• 8 million people

• $1 billion savings

• Matches dollar for dollar every amount saved for first 3 months, and 5% there after up to $250/year

2. Give your customers the ability to truly express themselves.

• Harley-Davidson tattoos

• Apple halo effect

• Jones Soda:Customers on the bottle

Jones Soda:Customized Labels

• “My Jones”

• $29.99/12 pack

• photo and quote

• 858,582 photos submitted

3. Make your customers feel like they’re part of a bigger cause.

• Prius: “I can buy a car& save the world!”

• Timberland, Kenneth Cole,The Body Shop, Ben & Jerry’s

• Patagonia:“1% for the Planet”

Patagonia:“1% for the Planet”

• 1% of sales since 1985

• $31 million donated

• Alliance of 1,000 companies that are supporting nearly 2,000 environmental organizations

4. Offer your customers something of real value that they

hadn’t even imagined.

• FedEx

•The Geek Squad

• Jet Blue: DirecTV

JetBlue: DirecTV

• David Neeleman, founder: “bringing the living room couch to coach, coast to coast”

Investor Pyramid

Transactional investors focus on the milk.Relationship investors focus on the cow.

INVESTOR RELATIONSHIP TRUTH

TRANSACTION ALIGNMENT

CREATES:

TRUST

RELATIONSHIP ALIGNMENT

LEGACY

CONFIDENCE

PRIDE OF OWNERSHIP

(Succeed)

(Survival)

(Transform)

INVESTOR TRUTHEMPLOYEE TRUTH

Money

Recognition

Meaning

TransactionAlignment

RelationshipAlignment

MeetsExpectations

MeetsDesires

MeetsUnrecognized

Needs

CREATES:

Evangelism

Commitment

Satisfaction

CREATES:

Inspiration

Loyalty

BaseMotivation

CREATES:

Pride of Ownership

Confidence

Trust

Peak Experiences Create

Peak Performance

CUSTOMER TRUTH

RelationshipTruths

Pyramid

Legacy

INVESTOR TRUTHEMPLOYEE TRUTH

Money

Recognition

Meaning

TransactionAlignment

RelationshipAlignment

MeetsExpectations

MeetsDesires

MeetsUnrecognized

Needs

CREATES:

Evangelism

Commitment

Satisfaction

CREATES:

Inspiration

Loyalty

BaseMotivation

CREATES:

Pride of Ownership

Confidence

Trust

1

2

3

Creating a UniqueCorporate Culture

Building an Enthusiastic Staff

Developing Strong Customer

Loyalty Maintaining a Profitable & Sustainable

Business4

Peak Experiences Create

Peak Performance

CUSTOMER TRUTH

RelationshipTruths

Pyramid

Legacy

OTHER PEAK PERFORMING ORGANIZATIONSConsciously using Maslow…

What can hospitals (and the health care industry) learn from the hospitality

business?

LESSON 1: THE PATIENT IS YOUR GUEST

• They want to be treated well, not just be cured. It’s all about the experience.

• The higher you move up the customer pyramid, the more you move from a commodity to a premium-priced product.

• Motel 6 is at the bottom of the customer pyramid. Four Seasons is at the top. Where are you?

LESSON 2: IT’S THE WHOLE PICTURE THAT THE PATIENT EXPERIENCES• Just like the bartender or bellman can make or

break the hotel experience, every touch point in the hospital matters – not just the nurse and the doctor – but also the parking attendant, the custodian, the food carriers, and the phlebotomist.

• The patient sees the entire event and interaction as one, so everyone needs to be moving up that continuum from job to calling.

• Many hospitals get the bottom and top of the employee pyramid right (money and meaning) but they forget about the relationship issues on the middle level (recognition).

LESSON 3: BECOME OBSESSIVE ABOUT YOUR CULTURE

• Culture is the glue that keeps your team together and it’s the magnet that attracts talented people to work for you.

• Make a list of the 10 elements of your culture that truly differentiate you from other health care providers.

LESSON 4: BE READY TO REMAKE YOUR BUSINESS MODEL

• Hotel companies had to remake their distribution strategies when the “disruptive innovation” of third party travel websites (like Expedia) emerged as the “Wal-Mart of Travel.”

• Is Wal-Mart (or some other company or the government) about to disruptively innovate your approach to distributing or delivering your product?

• How can you create an Yvette the Hotel Matchmaker mass customized experience that will move you above the coming commoditization of health care?

“Creating Peak Experiences Creates Peak Performance.”

Conventional wisdom is wrong: (1) money isn’t the primary

motivator for employees; (2) customers don’t stay loyal

when purely “satisfied”; and (3) many investors have needs

beyond ROI. Loyalty is created at the peak of each pyramid.

YOUR COMPANY

(Survive)

YOUR COMPANY

(Succeed)

YOUR COMPANY

(Transform)

Seek the

Peak

www.chipconley.com

www.jdvhotels.com

www.peakorganizations.com

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