Moneyball and the Beginning, Middle, and End of Innovation

Moneyball and the Beginning, Middle, and End of Innovation

by | Feb 24, 2021 | Innovation, Stories & Examples

Last week, pitchers and catchers reported to MLB Spring Training facilities in Florida and Arizona.  For baseball fans, this is the first sign of Spring, an occasion that heralds months of warmth and sunshine, ballparks filled (hopefully) with cheering fans, dinners of beers and brats, and the undying belief that this year will be the year.

Of course, there’s still a lot of dark, dreary cold between now and Opening Day.  Perfect weather for watching baseball movies – Bull Durham, Major League, The Natural, Field of Dreams, and, of course, Moneyball.

Moneyball is based on the book of the same name by Michael Lewis and chronicles the 2002 Oakland Athletics season.  The ’02 Oakland A’s, led by General Manager Billy Beane (played by Brad Pitt), forever changed baseball by adopting an approach that valued rigorous statistical analysis over the collective wisdom of baseball insiders (coaches, scouts, front office personnel) when building a team.  This approach, termed “Moneyball,” enabled the A’s to reach the postseason with a team that cost only $44M in salary, compared to the NY Yankees that spent $125M to achieve the same outcome.

While the whole movie (and book) is a testament to the courage and perseverance required to challenge and change the status quo, time and again I come back to three lines that perfectly sum up the journey of every successful intrapreneur I’ve ever met.

The Beginning

“I know you’ve taken it in the teeth out there, but the first guy through the wall…he always gets bloody…always always gets bloody.  This is threatening not just a way of doing business… but in their minds, it’s threatening the game. Really what it’s threatening is their livelihood, their jobs. It’s threatening the way they do things… and every time that happens, whether it’s the government, a way of doing business, whatever, the people who are holding the reins – they have their hands on the switch – they go batshit crazy.”

John Henry, Owner of the Boston Red Sox

Context

The 2002 season is over, and the A’s were eliminated in the first round of the playoffs.  John Henry, an owner of the Boston Red Sox, has invited Bill Beane to Boston to offer him the Red Sox GM job. 

Lesson

This is what you sign up for when you decide to be an Intrapreneur.  The more you challenge the status quo, the more you question how business is done, the more you ask Why and demand an answer, the closer you get to “tak(ing) it in the teeth.”

This is why courage, perseverance, and an unshakeable belief that things can and should be better are absolutely essential for intrapreneurs.  Your job is to run at the wall over and over until you get through it.

People will follow.  The Red Sox did.  They won the World Series in 2003, breaking an 84-year-old curse.

The Middle

“It’s a process, it’s a process, it’s a process”

Bill Beane

Context

Billy has to convince the ballplayers to forget all the habits that made them great and embrace the philosophy of Moneyball.  To stop stealing bases, turning double plays on bunts, and swinging for the fences and to start taking walks, throwing to first for the easy out, and prioritize getting on base over hitting a home run.

The players are confused and frustrated.  Suddenly, everything that they once did right is wrong and what was not valued is deeply prized.

Lesson

Innovation is something new that creates value.  Something new doesn’t just require change, it requires people to stop doing things that work and start doing things that seem strange or even wrong.

Change doesn’t happen overnight.  It’s not a switch to be flipped.  It’s a process to be learned.  It takes time, practice, reminders, and patience.

The End

“When you get an answer you’re looking for, hang up.”

Billy Beane

Context

In this scene, Billy has offered one of his players to multiple teams, searching for the best deal.  When the phone rings with a deal he likes, he and the other General Manager (GM) agree to it, Billy hangs up.  Even though the other GM was in the middle of a sentence.  When Peter Brand, the Assistant GM played by Jonah Hill, points out that Billy had just hung up on the other GM, Billy responds with this nugget of wisdom.

Lesson

It’s advice intrapreneurs should take very much to heart.  I often see Innovation teams walk into management presentations with long presentations, full of data and projections, anxious to share their progress, and hoping for continued funding and support.  When the meeting starts, a senior exec will say something like, “We’re excited by the progress we’re hearing about and what it will take to continue.” 

That’s the cue to “hang up.”

Instead of starting the presentation from the beginning, start with “what it will take to continue.”  You got the answer you’re looking for – they’re excited about the progress you’ve made – don’t spend time giving them the info they already have or, worse, could raise questions and dim their enthusiasm.  Hang up on the conversation you want to have and have the conversation they want to have.

In closing

Moneyball was an innovation that fundamentally changed one of the most tradition-bound businesses in sports.  To be successful, it required someone willing to take it in the teeth, to coach people through a process, and to hang up when they got the answer they wanted.  It wasn’t easy but real change rarely is.

The same is true in corporations.  They need their own Bill Beanes.

Are you willing to step up to the plate?

3 Insights from an Idea Generation Program that Actually Works!

3 Insights from an Idea Generation Program that Actually Works!

by | Nov 18, 2020 | Innovation, Stories & Examples

Companies love to invest in idea generation – challenges, hackathons, software platforms to collect and sort submissions.

Companies do not love the ROI of these investments because they require a lot of money and time and the ideas rarely become real and create value.

But one company is doing it right and they are loving the early results.

This morning I chatted with a graduate of the Intrapreneurship Academy that I teach in partnership with The Cable Center.  It was the kind of life-affirming call that consultants rarely get to enjoy, one that is evidence that the work you do matters to both people and businesses.

During the program, he focused on solving a problem related to surfacing ideas within the organization, rather than relying on management to come up with new ideas and initiatives.  As he worked through the innovation process, he found other passionate intrapreneurs and champions within his organization willing to lend their time, energy, and political clout to developing a solution.

In May, the idea generation solution went live.

A mere 6 months later:

  • 20% of the organization submitted ideas
  • 2 ideas, on average, were submitted by each person
  • 60% of submitted ideas were presented to senior leadership
  • ~20% of the ideas submitted were approved for further development
  • 10% of ideas submitted are in the process of being launched

10% of ideas received funding and are being launched! 

VCs would kill for that kind of success rate.

Ahh, but what about ROI?  Launches do not equal market success. Value creation, specifically financial returns, are evidence of market success.

This was all done with $0 investment.

The team used internal resources for everything – existing software platforms and programs, design and marketing talent, and passionate staff and leaders to promote and participate in the program.

3 lessons learned on the path to success

Like all good innovators, the team prioritized moving quickly with “good enough” solutions and learning and adjusting rapidly based on feedback.  Here are three of their top insights:

1. It’s all about People.  People define organizations.  People create ideas.  People motivate and inspire other people. So, if you want to succeed, focus on people.

For example, every person who submits an idea receives personalized feedback about what worked or didn’t and how, if possible, they could make their idea more attractive to the business.  Originally, this feedback was given by email because let’s be honest, it’s a lot more efficient.  But people felt that the feedback was “cold” and felt discouraged and demotivated after reading it.  Now, all feedback is delivered in a quick conversation that feels more personal and leaves people feeling heard and motivated

2. Build a Habit, not an Event.  Early in the design process, the team spoke with a group in another region that was also creating an idea generation program.  The difference was that they were designing it as an annual event (and spending hundreds of thousands of dollars to buy and implement an idea management software platform).

But people don’t have ideas just once a year.  They have ideas all the time.  And the business needs new ideas for revenue generation and cost savings constantly, not just once a year.

So this team designed their program to be on-going – people can submit ideas at any time for feedback, senior management meets once every 1-2 months to review and approve ideas, and teams are started (and ended) based on data, not the calendar.

3. Imperfect Action is more important than Perfect Inaction – “Frameworks are great and really helpful, but….” As my former student’s voice trailed off, I couldn’t help but laugh.  He was trying so hard to be polite, after all, I’m the person who taught him the frameworks, but we both knew that the end of that sentence was, “…you need to actually do things in the real world to know what works.”

Yes, frameworks, theories, templates, best practices, are all useful AS STARTING POINTS.  They reflect what has worked in the past for other companies so, while they can help you avoid common mistakes or accelerate decision-making, they’re not perfect reflections of the current reality of your company and innovation.  To know what will work for your idea, in your company, in your market, in your geography, with your team, and your customers, you need to get off the page and into the real world.

The next challenge – how to scale

With such clear early success, there’s huge demand to expand the program rapidly within the region.  But premature scaling is the death-knell of many innovations.

So, the question facing the team is when and how to expand?

Should they expand laterally, rolling their country’s program out to other countries in the region, or should they expand vertically, moving the program up to be managed at the regional level?

Should they seek to increase participation in their current program, or should they expand their program’s offering to include trainings and challenges?

When should all of this expansion happen?  What should happen first?

The fact that these questions are being asked is a clear sign of success.  While there are no obvious answers, I do not doubt that the team will find them.

The 5 Gifts of Uncertainty

The 5 Gifts of Uncertainty

by | Sep 30, 2020 | Innovation, Leadership, Stories & Examples

“How are you doing?  How are you handling all this?”

It seems like 90% of conversations these days start with those two sentences.  We ask out of genuine concern and also out of a need to commiserate, to share our experiences, and to find someone that understands.

The connection these questions create is just one of the Gifts of Uncertainty that have been given to us by the pandemic.

Yes, I know that the idea of uncertainty, especially in big things like our lives and businesses, being a gift is bizarre.  When one of my friends first suggested the idea, I rolled my eyes pretty hard and then checked to make sure I was talk to my smart sarcastic fellow business owner and not the Dali Lama.

But as I thought about it more, started looking for “gifts” in the news and listening for them in conversations with friends and clients, I realized how wise my friend truly was.

Faced with levels of uncertainty we’ve never before experienced, people and businesses are doing things they’ve never imagined having to do and, as a result, are discovering skills and abilities they never knew they had.  These are the Gifts of Uncertainty

  1. Necessity of offering a vision – When we’re facing or doing something new, we don’t have all the answers. But we don’t need all the answers to take action.  The people emerging as leaders, in both the political and business realms, are the ones acknowledging this reality by sharing what they do know, offering a vision for the future, laying out a process to achieve it, and admitting the unknowns and the variables that will affect both the plan and the outcome.
  2. Freedom to experiment – As governments ordered businesses like restaurants to close and social distancing made it nearly impossible for other businesses to continue operating, business owners were suddenly faced with a tough choice – stop operations completely or find new ways to continue to serve. Restaurants began to offer carry out and delivery.  Bookstores, like Powell’s in Portland OR and Northshire Bookstore in Manchester VT, also got into curbside pick-up and delivery game.  Even dentists and orthodontists began to offer virtual visits through services like Wally Health and Orthodontic Screening Kit, respectively.
  3. Ability to change – Businesses are discovering that they can move quickly, change rapidly, and use existing capabilities to produce entirely new products. Nike and HP are producing face shields. Zara and Prada are producing face masks. Fanatics, makers of MLB uniforms, and Ford are producing gowns.  GM and Dyson are gearing up to produce ventilators. And seemingly every alcohol company is making hand sanitizer.  Months ago, all of these companies were in very different businesses and likely never imagined that they could or would pivot to producing products for the healthcare sector.  But they did pivot.
  4. Power of Relationships – Social distancing and self-isolation are bringing into sharp relief the importance of human connection and the power of relationships. The shift to virtual meetups like happy hours, coffees, and lunches is causing us to be thoughtful about who we spend time with rather than defaulting to whoever is nearby.  We are shifting to seeking connection with others rather than simply racking up as many LinkedIn Connections, Facebook friends, or Instagram followers as possible.  Even companies are realizing the powerful difference between relationships and subscribers as people unsubscribed en mass to the “How we’re dealing with COVID-19 emails” they received from every company with which they had ever provided their information.
  5. Business benefit of doing the right thing – In a perfect world, businesses that consistently operate ethically, fairly, and with the best interests of ALL their stakeholders (not just shareholders) in mind, would be rewarded. We are certainly not in a perfect world, but some businesses are doing the “right thing” and rea being rewarded.  Companies like Target are offering high-risk employees like seniors pregnant women, and those with compromised immune systems 30-days of paid leave.  CVS and Comcast are paying store employees extra in the form of one-time bonuses or percent increases on hourly wages.  Sweetgreen and AllBirds are donating food and shoes, respectively, to healthcare workers.  On the other hand, businesses that try to leverage the pandemic to boost their bottom lines are being taken to task.  Rothy’s, the popular shoe brand, announced on April 13 that they would shift one-third of their production capacity to making “disposable, non-medical masks to workers on the front line” and would donate five face masks for every item purchased.  Less than 12 hours later, they issued an apology for their “mis-step,” withdrew their purchase-to-donate program, and announced a bulk donation of 100,000 non-medical masks.

Before the pandemic, many of these things seemed impossibly hard, even theoretical.  In the midst of uncertainty, though, these each of these things became practical, even necessary.  As a result, in a few short weeks, we’ve proven to ourselves that we can do what we spent years saying we could not.

These are gifts to be cherished, remembered and used when the uncertainty, inevitably, fades.

Originally published on Mat 19, 2020 on Forbes.com

What’s next for higher ed? Mt Holyoke gave us a hint. In the 1980s.

What’s next for higher ed? Mt Holyoke gave us a hint. In the 1980s.

by | May 21, 2020 | Customer Centricity, Stories & Examples, Strategy

D-Day is less than 2 weeks away. On June 1, high school seniors and recent graduates will decide which, if any college to attend in the Fall. But, for most, they still won’t know where they’ll be living first semester.

Higher education, like so many other industries, has been rocked by the Coronavirus pandemic – classes are taught entirely on-line, students moved out of dorms and back home months before they planned, campuses are closed, and thousands of employees have been laid off or furloughed.

Like most other industries, colleges and universities have scrambled to respond and to prepare for what’s next.  Most pushed Decision Day back a month, from May 1 to June 1, to give prospective students more time to learn about schools offering admission and to assess their own ability to pay for and attend schools when classes resume.

But colleges and universities are facing a challenge that most industries are not.

Their customers are rebelling.  They are filing lawsuits.  They are asking a fundamental question, “What does my tuition actually buy?”

Before the pandemic, people though they knew.

It was only 30 years ago that most high school graduates opted to go to college.  According to research from the Georgetown Center on Education and the Workforce, in 1970, only 26% of middle-class workers had any post-high school education.  By 1992, it had jumped to 56% and 62% in 2018.

Today, prospective students, and their families believe that a college education is the cost of entry to a middle-class life.  You hear it in the Jobs to be Done (problems to be solved, goals to be achieved) they express when you ask why they want to go to college:

  • “I want to get a good job when I graduate” – functional Job to be Done
  • “I want to make a good living” – functional Job to be Done
  • “I want to have more independence” – Emotional Job to be Done (i.e. how I want to feel)
  • “I want to be part of something bigger than myself” – Social Job to be Done (i.e. how I want others to see me).

In response, colleges invested huge sums of money to convince students and their families that they offer the best solution to all of these Jobs to be Done.

  • Functional Jobs to be Done:. “I want to get a good job when I graduate” and “I want to make a good living”
    • Elements of the “College Solution”
      • Strong reputation
      • World-class education
      • Renowned faculty
      • Access to alumni network
      • Active Career services department
      • Relationships with employers
  • Emotional Job to be Done: “I want to have more independence”
    • Elements of the “College Solution”
      • Location near a major metro area or a fun college town
      • Access to student housing
      • Access to food
  • Social Job to be Done: “I want to be part of something bigger than myself”
    • Elements of the “College Solution”
      • Student clubs
      • Social clubs
      • Diverse student population
      • Championship athletics
      • Great living facilities

These elements and more are marketed in beautiful glossy brochures, recruiting roadshows, and campus tours.

The message is clear, “All of this and more could be yours if you are accepted and willing to pay.” And pay the students and their families did.

But here’s the rub.

When America went on lock-down in mid-March, colleges and universities were forced to close their campuses and send home students.  Classes were moved to virtual settings with little to no training to help faculty adjust to the new format. Overnight, almost all the elements of the “College solution” disappeared or were compromised, leaving a list that looks like this:

  • Functional Jobs to be Done:. “I want to get a good job when I graduate” and “I want to make a good living”
    • Elements of the “College Solution”
      • Strong reputation
      • World-class education*
      • Renowned faculty
      • Access to alumni network*
      • Active Career services department*
      • Relationships with employers*
  • Emotional Job to be Done: “I want to have more independence”
    • Elements of the “College Solution” – n/a
  • Social Job to be Done: “I want to be part of something bigger than myself”
    • Elements of the “College Solution” – n/a

(* = significantly compromised due to moving to a virtual setting or to economic conditions)

Yet the price of the “College solution” did not change. What happens when the customer thinks they’re paying for one thing (long list of elements) and the seller gives them something less (short list of elements) and refuses to refund a portion of their money? Lawsuits. As Mark Schaffer, the parent of a George Washington University student, explained in his Washington Post Oped:

“When my daughter was deciding where to go to college, we were persuaded by George Washington University’s promises of an extraordinary on-campus experience. The school’s recruiting materials tout a dazzling array of opportunities — to engage one-on-one with renowned faculty, join more than 450 clubs and organizations, or explore passions in high-tech labs, vast libraries, and state-of-the-art study spaces.

The university promises that living at the school opens the door to “world-class” internships, lifelong friendships with neighbors and roommates, and the chance to “become a part of the nation’s capital and make a difference in it every day.” In exchange, GWU expects around $30,000 per semester.   As college campuses across the country have shut down to slow the spread of the novel coronavirus, most schools, including GWU, have offered only online classes since mid-March. The reason for the shift is not the schools’ fault. But this remote education is nowhere near the caliber of the on-campus experience students were promised. For this reason, I and other GWU parents have requested a partial refund of this semester’s tuition and fees.   Unfortunately — and offensively — the university has refused these requests. This is why I am suing GWU for damages to compensate my family for losses suffered because of the school’s breach of contract, and why I am seeking to represent all families similarly harmed by the school through a class action.”

What happens in the Fall is unclear

As lawsuits against GWU, Northwestern, University of Chicago, NYU, Columbia, and other schools wind their ways through the legal system, everyone is scrambling to figure out what happens in the Fall. Most schools haven’t made decisions and the few schools that have seem to be falling into 3 buckets:

  • Return to pre-pandemic normal by resuming all on-campus classes, activities, and operations: Brown University (as advocated by their president in a NYT Oped), Purdue University
  • Proceed cautiously with a phased approach to resuming on-campus operations, classes, and living: UC Berkeley
  • Stayed closed and continue virtual classes: California State University (the largest university system in the US)

Students are also struggling with their decisions.  Without clarity as to what the Fall semester looks like and certainty as to their families’ financial means due to the economic downturn and rising unemployment, many students are considering taking a gap year or enrolling in a lower-cost option, such as a community college or public university.

What happens in 2021 and beyond is much easier to predict.

Certainly, the impact of decisions made about the Fall semester will reverberate for years to come as colleges cope with lost revenue from enrollment and a fairly high fixed costs base.

But the greater impact will come from students’ and families’ sudden awareness of the Mt. Holyoke Phenomenon and the role it’s played in their decision making.

First witnessed in the 1980s, the “Mt. Holyoke Phenomenon” reveals that  “charging higher tuition leads to a greater number of applicants, as well as academically higher quality applicants.”

The impact of this phenomenon is simple – higher tuition attracts better students, better students demand better education and experiences, better education and experiences improve the school’s brand, a better brand means schools can raise tuition and make more money.

Given that college tuition has increased 260% since 1980, compared to the 120% increase in all consumer items, it’s reasonable to assume that, more and more, tuition is buying access to the college’s reputation.

And, as the lawsuits and declining enrollments suggest, people thought skyrocketing tuition paid for a lot more and, suddenly aware that it doesn’t, may no longer be willing to pay the premium.

The result will re-shape higher education as we know it.

Instead of getting into the most prestigious school possible and relying on financial aid and loans to pay for it, high school seniors will consider a wider variety of post-high school options, including:

  • Trade schools which lead to high-paying and highly in demand skilled work
  • Community colleges that grant Associate’s degrees and/or a path to transfer to a 4-year college
  • Co-op programs that allow them to gain work experience at the same time as a college degree

Colleges, too, will step away from their all (on-campus) or nothing solution to offer a wider portfolio of options.  In fact, some schools already have:

  • Miami University has several campuses, one in Oxford offering a traditional, residential 4-year experience, and two other campuses nearby that offer part-time associates and bachelor’s degrees
  • Harvard University offers a traditional 4-year college education, and undergraduate and graduate degrees through the nonresidential Harvard Extension School, and online certificates through Harvard X
  • SNHU famously offers online and campus degree programs and a special “Military Experience” that offers generous tuition discounts, credit transfers, and support programs to active duty military and their spouses

 It will take years for demand (what students want and are willing to pay for) and supply (what colleges and universities can offer) to reach equilibrium.  But that equilibrium will look very different than it does today.  Mt Holyoke taught us that in the 1980s.  The coronavirus reminded us.

Isaac Newton Knows What’s Next for Air Travel

Isaac Newton Knows What’s Next for Air Travel

by | May 13, 2020 | Customer Centricity, Innovation, Stories & Examples, Strategy

I took my last flight on Friday, March 13, two days after the president’s first address to the nation about COVID-19.

It was a JetBlue flight from Charlotte, NC back home to Boston.  And it was awesome!

Setting aside the fact that I was wearing disposable gloves and wiping down every surface with Clorox wipes, I felt like I was flying private. I was the only person in my row, with no one in the row ahead of or behind me.  Snacks and drinks were plentiful.  The stewards were friendly and attentive.  Even the boarding process was swift and orderly.

But when stay-at-home orders went into effect the following Monday and I shared my travel story with clients, they were aghast.  How could I take such risks?  Did I feel safe?  Did I wear a mask?

Their reactions surprised me.  After all, these executives are frequent travelers, even road warriors they travel so much.  Yet the fear in their voices revealed a changing perception of travel.  What was once a necessary evil for work and an efficient solution for vacation had, in just 3 days, become a senseless risk.

In the 2 months since that flight, the airline industry has been rocked.  Consider:

  • 94% drop in US commercial airlines’ passenger volume
  • 80% decrease in US private jet flights
  • 75% decrease in the number of worldwide commercial flights per day
  • 80% decline in the global daily number of flight searches
  • 61% increase in the amount of time between booking and traveling

That last stat – 61% increase in the amount of time between booking and traveling – indicates that people don’t expect to fly any time soon.  But is that expectation a reaction to the drastic measures taken to flatten the curve or is it a sign of changing travel habits?

Many experts and industry associations are looking to data about the airline industry’s recovery post-9/11 and the 2008 global financial crisis.  According to data from Airlines for America, it took 3 years for passenger volume and revenue to return to pre-9/11 levels and approximately 7 years to recover to pre-2008 financial crisis levels.

Here’s the harsh truth – we cannot possibly know what will happen next.  9/11 and the 2008 financial crisis were fundamentally different events than what we’re experiencing now.

So while I understand why people are looking to these past events – data offers a sense of comfort and control over the future – using data from them is pointless.  It offers a warm snuggly illusion that things won’t change that much and a return to the old days is inevitable.

Instead of looking to the past for answers, we need to look to physics.

Newton’s 3rd Law, to be precise.  It states that for every action, there is an equal and opposite reaction.

By looking at the actions that airlines, and regulatory and legislative bodies, are currently considering, it’s possible to predict customers’ equal and opposite reactions and, as a result, what the new normal could look like.

Photo by Nadine Shaabana on Unsplash

Action: Travelers who cross state or country borders must quarantine for 14-days unless they can prove that they are COVID-19 negative
Reaction: People will limit their travel to within their home states or countries

Most US states and many countries have 14-day mandatory quarantines in place for people traveling into their jurisdictions.  Given that most trips last less than two weeks, these restrictions essentially make most travel impractical.

Some places, like Hong Kong and Vienna, are trying to lessen that barrier by testing arriving passengers at the airport and, if they test negative for COVID-19, exempting them from quarantine.

But until a vaccine is widely available, “travel is likely to return first to domestic markets with ‘staycations,’ then to a country’s nearest neighbors before expanding across regions, and then finally across continents to welcome the return of journeys to long-haul international destinations,” according to Cecilia Rodriguez, a senior contributor to Forbes.

Photo by Dino Reichmuth on Unsplash

Action: Prices increase due to fewer flights, reduced capacity
Reaction: Demand decreases as vacations become road trips and business travelers continue to use virtual meeting technology

According to research by Longwoods International, a research firm focused on the tourism industry, 82% of people traveling in the next 6 months have changed their travel plans.  22% of these people have changed from flying to driving. “Our clients are a little hesitant to get on an airplane right now,” Jessica Griscavage, director of marketing at McCabe World Travel in McLean, Virginia, told CNBC. “We’re already preparing for the drive market for the remainder of the year, and probably into 2021.”

In conversations I’ve had with business clients, the shift isn’t from air to road travel, the shift is more drastic – from traveling to not traveling.  For most large companies, business hasn’t stopped or even slowed. Instead, it’s shifted to technologies like Zoom and Microsoft Teams.  As people become more comfortable working “virtually,” these solutions will become far more attractive and just as effective as hopping on a plane.

Photo by CDC on Unsplash

Action: 4-hour pre-flight processing to ensure that all bags are sanitized, and all passengers are healthy
Reaction: Business travelers will choose private flights or fractional jet ownership over commercial air travel

The average business trip is approximately 3 days long according to Travel Leaders Corporate, an award-winning leader in business travel.  With most days packed with meetings, executives will have neither the time nor the patience to devote half-a-day to check-in, security and health screening, and boarding.

Instead, they’ll opt for private or private-like offerings such as NetJets that offer an expedited check-in, screening, and boarding process.

Photo by JC Gellidon on Unsplash

Action: Longer flight turnarounds due to the need to sanitize planes
Reaction: Demand (and prices) for direct flights will increase while demand to get to places that don’t offer direct flights will decrease

Consultants often joke about the “Misery Tax” – the premium that clients in hard reach location have to pay to make it “worth the firm’s wile” to serve them.  Although that may seem crass, there’s no debating that direct flights are significantly easier and less painful than ones that require connections.

The pain of connecting flights, however, is likely to go through the roof as the 30-minute turn-around times that airlines have been chasing become nearly impossible due to increased cleaning and sanitation guidelines.  Gone will be the days when travelers worried about making their connections.  Instead, they’ll worry about how to fill the hours between flights.

In fact, it’s likely that the misery of a given itinerary will shift from being a “tax” passed on to clients to a filter that business and leisure travelers will use when deciding where to travel.

Photo by Sharon McCutcheon on Unsplash

Action: Airlines will use the need for more screening and sanitizing to justify more fees
Reaction: People will fly only when needed, instead opting for other, cheaper, and easier convenient options.

With $82B in additional revenue from add-on fees, airlines aren’t going to pull back from charging for “extras.”  Instead, the need for more passenger screening, social distancing, and control over what is allowed in the cabin, will inspire even more add-on fees.

For example, airline industry consulting firm, Simplifying, predicts that airlines will no longer allow passengers to pick their seats but will instead assign seats to ensure proper social distancing and offer passengers the opportunity to pay for premium seats and/or keep the seat next to them empty.

Other options under consideration are banning carry-on baggage (which conveniently increases the number of bags checked and therefore the revenue from checked-bag fees) and selling safety kits containing face masks, disposable gloves, and cleaning wipes.

Already tired of being nickel-and-dimed, travelers are unlikely to willingly pay extra for required services and, as a result, are more likely to be open to alternatives such as car trips or virtual face-to-face meetings.

Photo by JESHOOTS.COM on Unsplash

There will always be demand for air travel.
But it may take generations for demand to pre-COVID levels.

Unlike 2001 and 2008, air travelers have options beyond commercial air carriers.  Wealthy and business travelers can opt for private jets or services offering fractional ownership.  Businesses, already eager to cut costs, will be more open to virtual face-to-face meetings.  Families can re-discover the adventure of road trips and the creativity of staycations.

It is the availability of these comparable options combined with the invisible threat of disease that will cause people to re-think their habits and default options and slow the airline industry’s recovery.  If it ever fully recovers at all.

5 Unexpected Uses of Telemedicine and How They May Help You

5 Unexpected Uses of Telemedicine and How They May Help You

by | May 6, 2020 | Innovation, Stories & Examples

There is more to telemedicine – the exchange of medical information from one site to another through electronic communication to improve a patient’s health – than virtual visits with physicians.

Specialists like dentists, orthodontists, ophthalmologists, psychologists, and even veterinarians are using telemedicine solutions during the pandemic.

Like their physician counterparts, many resisted virtual visits until it became the only way to continue to care for patients and stay in business, as stay-at-home orders expanded from weeks to months.

Here’s a quick run-down of telemedicine’s use in other specialties and what the road ahead could look like for each.

DENTISTRY

Where we are now

According to the American Dental Association, since early March, 79% of dentistry practices closed except for emergency procedures, and another 18% closed completely.

This isn’t surprising given how COVID-19 is transmitted but, for patients in pain, it can be hard to know what constitutes a true emergency and what can be managed at home.  Helping patients figure out what needs immediate attention and what can wait seems to be tele-dentistry’s sweet spot.

“Research indicates that 80% of acute dental concerns can be addressed at home without an in-person visit,” explains Chelsea Acosta Patel, Head of Wally Experience at Wally Health, a dental care start-up based in Boston.  “Using technology, dentists can triage issues and care for patients while keeping them out of the chair.”

Where we go from here

The bigger, long-term opportunity, according to Patel, may be in preventative care by creating and monitoring at-home preventive care solutions across the patient dental journey.

“Most dentists don’t have the tools to keep an ongoing pulse with patients.  They just assume that if a patient has an issue or a question, they’ll call the office.  Teledentistry solutions enable dentists to develop customized, ongoing touchpoints to help patients remain healthy and catch potential issues early. This improves the patient’s experience, drives loyalty and word of mouth (pun intended) for the dentist, creating a virtuous oral health cycle.”

ORTHODONTICS

Where we are now

While Dentists need a way to answer questions, triage issues, and provide follow-up care, Orthodontists have a more pressing need – to make sure their patients’ jaws continue to develop and their teeth continue to move in the right way.

“We serve a vulnerable pediatric population whose jaws are developing.  The adjustments we make as part of their treatment affect that growth and development,” explains Dr. Adam Welmerink of Welmerink Orthodontics in Reno Nevada.  “When we realized this would be more than a 2-week shutdown, we needed a way to keep our patients safe, make sure their appliances weren’t doing any harm, and ensure their treatment was progressing as planned,”

Through services like Orthodontic Screening Kit (OSK), patients receive instructions on how to take photos and upload them to the OSK site for review by their orthodontists.  Of course, the orthodontist’s ability to assess the patient’s need is determined by the quality of the photos, but, at a minimum, the service creates an opportunity for orthodontists to reconnect with their patients and give them guidance on signs that could trigger an in-office visit.

Where we go from here

Telemedicine in orthodontics, like many other specialties, will likely continue to be used to triage issues or to serve patients in remote rural areas.

“Many of our patients live in rural areas, with some driving 2 hours for a 10-minute appointment.  We’ll probably continue to use (OSK) to see if they need to come in.  And I could see using it in a limited capacity to triage patients who call with an emergency to assess if they can treat the issue at home or if they need to come in.” Dr. Welmerink mused.  “Honestly, time-wise, it’s quicker to see a patient in the office. But this is great for right now.”

OPTHALMOLOGY & OPTOMETRTRY

Where we are now

Telemedicine’s use as a way to calm patients and triage concerns, deciding whether or not an in-office visit is required, continues with eye care.

“It is certainly a way to reassure patients that we are there for them, which is most important in these scary times,” NYC optometrist Dr. Susan Resnick told All About Vision.

While reassurance is important, most eye care professionals agree that telemedicine’s use is extremely limited.  Proper eye care requires pupil dilation and specialized tools to accurately identify problems like glaucoma or assess the health of optic nerves and retinas.

Where we go from here

Despite its limitations, Dr. Resnick sees value in continuing to use telemedicine, “We will continue to utilize this platform whenever necessary.  We do not view it as a disruptor or threat, but rather as a way to bolster our practice.”

Not everyone agrees.

“I’m not terribly enthusiastic (about remote eye exams),” Illinois ophthalmologist Dr. Benjamin Ticho told All About Vision.  “There’s going to be too many mistakes.  Plus, it diminishes the warmth and personality of the interaction.  For many patients, a good doctor visit is a pleasant social occasion, and for many doctors, that’s part of why we went into medicine.”

MENTAL HEALTH

Where we are now

The data is staggering.

Before the crisis, 20% of US adults lived with mental illness but less than half received treatment according to federal statistics.

In the last two weeks of March, 45% of US adults felt that worry and stress related to COVID-19 were harming their mental health.  It’s likely that number has increased as stay-at-home orders extend, and job losses and furloughs increase.

Yet the adoption of telemedicine to address mental health concerns has been slow.  A phenomenon that is far from new.  Case in point – over a decade ago, Congress excluded mental health providers from a $30M investment in digitizing patient health records.  Even now, as CMS, private insurers, and state regulators are easing restrictions and increasing reimbursement for telemedicine to treat physical concerns, similar attention and flexibility have not been shown to mental health concerns.

As a result, “(providers) are kind of trying everything right now and seeing what can work,” John Torous, director of the digital psychiatry division at Beth Israel Deaconess Medical Center told Politico.

Where we go from here

More than other specialties, the jury is out on what happens next with regards to telemedicine for mental health.

On one hand, “so much of counseling has to do with body language, being physically present in the room, intonation,” Lynn Linde for the American Counseling Association told Politco.  “Sometimes, that’s lost when you don’t have a good internet connection, or one of your starts getting garbled.”

On the other, this could be a “tipping point for the way we practice,” said Peter Yellowlees, a professor of clinical psychiatry at the University of California, Davis and former president of the American Telemedicine Association.

Optum, a division of UnitedHealth, seems to be betting on the latter.  Last week it announced that it was in talks to acquire AbleTo, a New York-based virtual therapy provider for $470M, or 10x forward revenue.

VETERINARY CARE

Where we are now

If telemedicine is good enough for humans, it’s good enough for our animal companions.

A relatively new addition to the specialties offering telemedicine solutions, only a handful of companies are currently playing in this field.  TeleVet, a “Texas-based, digitally optimized company focused on veterinary care,” is one.

Before the outbreak, TeleVet was in use in 1000 clinics across the US and even closed a $2M seed round in January.

“We can check for infections such as ear infections or drainage from either a still picture or a video, or even a live video conference with the owner,” Dr. Amy Garrou as Houston-area vet explained to Innovation Map. “The platform has been useful because we can do any of those consultations and get the information we need to manage the case without the pet owner having to come into the clinic.”

Where we go from here

Like dentistry, orthodontics, and eye care, telemedicine’s use in the Veterinary space is a boon for providers and patients at a time when it’s not safe to be in a crowded office.  But as restrictions lift, like the other health care fields, it’s likely to be used primarily to answer questions, triage concerns, and perform post-surgery check-ups.

 

THE CLINICAL APPLICATIONS ARE DIFFERENT BUT  THE ROAD AHEAD IS THE SAME.

Yes, telemedicine is an incredible tool to have in our collective healthcare toolkit.  Its use across medical specialties is evidence that it fills a need for clinicians (provide care for my patients) and patients (address my concerns).

In “normal” times, those needs are well addressed by in-office visits, retail clinics, and urgent care.  It is only in very specific circumstances, like when medical professionals cannot easily or safely see patients in-person, that existing solutions fall short and telemedicine becomes the most attractive option.

However, telemedicine only became an available option when regulators relaxed rules, insurers increased reimbursement, and patients accepted emails and video-chats as treatment.

It took a pandemic to create the confluence of circumstances required for physicians, dentists, orthodontists, eye care professionals, mental health caregivers, veterinarians, and other clinicians to begin or expand the use of telemedicine.  It’s their experience, and the experiences and decisions of other players in the healthcare ecosystem, that will lead them back to the office and the hands-on care that is both desired and required.