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Live Life Love | Volume Thirty

Hello Everyone,

Starting next quarter I am going to fundamentally change the format of this newsletter, but before I do that I wanted to write one last traditional post. I also want to make sure for those that do not have time to read this entire post, I at least have a chance to express my gratitude for sticking with me through these seven plus years. I usually leave life experience for the end of this newsletter, but in the context of this one I feel having it up front is appropriate. This month I made the cover of Club Solutions with the rest of the Active Sports Clubs leadership team.

Active Sports Clubs Dream Team | Club Solutions | 2015

For those of you that have been with me since the start, you will remember I began Live Life Love back in 2007 to ensure I did not lose sight of my passion for wellness as my career was pulling me in another direction. In 2011, I unabashedly asked for help to stay the course as my position at SBT Group was moved offshore to France. In 2015, through a long road of grinding and hustling, humbling experiences, and late nights, I have now arrived at my proverbial 10,000 hours. I am a sought out expert in the area of workplace wellness and proud of where I sit today.  

One thing I have realized along the way is I do not make a good Napolean Hill, Jim Rohn… or even a Matt Foley for that matter. While I have a pretty solid track record as a marketer, in sales I bat about average. As my good friend and past interviewee Jeff Atkinson put it, “you are living an extraordinary life, and you can talk circles around bull$h!t, but I still don’t know what you DO… or WHY?” Funny Jeff, and fair play. I have gotten this far basically mumbling to myself and taking you all along for the ride. It is time to take this project to a different level. Serendipitously the three things I know best are clearly tenets of successful employee wellness programs: strategic communication, foundational physical & psychological well-being, and technology. The “why” is easy for me to answer: I get off on seeing people thrive and flourish and want to spend the rest of my life finding ways to do this that scale. The “do” is still a work in progress but I am heading in the right direction and moving quicker each year — in large part from the opportunity you have given me to check-in with you once every three months.

I committed back in 2007 to seeing this through to the end, and I am a man of my word; however I don’t have much more to share in the line of general anecdotes. In this area you are better served by someone else. Although spirituality is clearly a key part of wellness, it is also sacred and personal so as a practice guideline I shy away from open discourse in this area. However, in developing my own concept of spirituality, one thing that is clear for my personal growth is that the pursuit of maximizing meaningful experience has continued to give me greater context. Similar to an artist broadening their palette to create, I have benefited from having an expanding repertoire of concepts to pull from while innovating new ideas. This quarter is no exception and I was quite fortunate to learn from the following two brilliant individuals.

This quarter’s health and wellness interview is with James Pshock who is the president and founder of Bravo Wellness. James is an Ernst & Young Entrepreneur of the Year Award winner, a committee member of HERO, and a thought leader in the area of workplace wellness. My interview with James Pshock on the topic of workplace wellness can be found here.

This quarter’s entrepreneurial interview is with Dr. Chris Bingham who is an award-winning professor of Strategy and Entrepreneurship at the Kenan-Flager Business School at the University of North Carolina. He received his PhD in strategy, organizations and entrepreneurship from Stanford University. My interview with Dr. Chris Bingham about fostering innovation can be found here.

Contribution this quarter came in the form of a couple random acts of kindness. Someone I do not really know reached out to a general audience asking for support in his effort to Spin4Kids …exercise for a good cause …I obliged; it made his day. I was also moved deeply by the story of Kayla Mueller. I’m not going to go too deep into her story here, you can read about her by using the link I’ve provided. I will simply say the world needs more people like Kayla, and we need to talk more about people like Kayla, and consume less manufactured news. The world already has more Kaylas than most of us believe, yet these exceptional people are only heralded during tragedy, in contrast to hooligans whose actions seem to be promulgated constantly through every media channel confusing eager minds that notoriety is somehow on par with legacy. In honor of Kayla I donated to Kayla’s Hands.

When I switch to the new format any personal updates will likely be few and far between, so in closing I’d like to vaunt that over the next 12 months Anna and I will be proudly welcoming a new son into this world, and I will also finally finish my PhD. I owe so much to the people that read this: my friends, my family, my colleagues. I am not delusional. I am at where I am today because I asked for and received help. A special thanks to those that have hung around this far but have little personal interest in wellness and/or entrepreneurship. Thanks so much for being a part of the ride up until now. For those of you that stay with me I stay committed to bringing you awesome content from remarkable thought leaders and will continue to keep my blog updated regarding contribution and life experience for those of you who might want to check-in from time to time to see how that is still going (or better yet, who want to join along on an adventure or two).

I hope your 2015 is off to an epic start and that you continue to flourish throughout the year.

In health,
Michael
@PerformBetter

Interview with James Pshock about Workplace Wellness

James Pshock is a well-established thought leader in the area of workplace wellness. He is the president and founder of Bravo Wellness, whose mission is to deliver exceptional services and products to organizations seeking to help their workforce achieve optimal health through incentives. His experience in the health insurance and wellness industry spans over two decades. James is an Ernst & Young Entrepreneur of the Year Award winner, and is also a committee member of HERO, an advocacy group for the advancement of workplace wellness.


1) The recent documentary, Fed Up, presented evidence that lobbyists potentially have garnered a narrative regarding obesity to be too heavily focused on activity, resulting in a lackluster focus on nutrition and food intake. In parallel, there seems to be an abundant focus on physical activity with regards to workplace wellness in comparison to other areas of behavior change. In your opinion, why do you think that is?

I am not sure I completely share this observation, although it’s true most programs are activity-based (in the sense that many programs involve activities, like taking part in a step challenge or watching an instructional video) and I think in many ways it’s because activities can be measured, and because these programs are relatively easy to implement. Whereas, with food, we can think back to second grade when your mom sent you to school with an apple in your lunchbox, and you would trade it for a Twinkie, and she would never find out. You can educate people. You can give them the food, but it doesn’t mean they are actually going to eat it. And, plus, you have the complexities of allergies, and food preferences, and people who just don’t like the taste of what you’re telling them to eat.

Focusing on nutrition can open a Pandora’s Box. If you’re going to go down that path of telling someone what they ought to be eating, then you’re going to have to be willing to deal with a lot of personalization and accommodations, which is no easy feat. We tend to focus more on the “why” than the “what”, and sharing the message of personal accountability for your health… this empowers the individual with a directive, but also the power of autonomy to achieve it.

2) In a 2014 New York Times article about Workplace Wellness the author contends that programs that focus on lifestyle change potentially do not reduce costs but move them from the employer to the employee. Putting aside there is evidence to refute this claim as factual, where does the responsibility of the company end and the responsibility of the employee start?

There are a lot of deep issues loaded in this question, everything from an entitlement mentality to employees who recognize health insurance as a “benefit”. Almost any company was not founded on the premise of being a health insurance provider. Insurance is meant to be a benefit. Yet, so many people just kind of have an entitlement mentality that really shelters them from understanding the true cost. Most people are unaware of the role that they individually play in determining what that cost is. Dental insurance is a great example. Historically, dental insurance has had 100% coverage for preventative services and something like 50% coverage for restorative or repair services. Look at the statistics. The result has been a phenomenally high rate of prevention because the benefits are typically pretty inadequate for major restorative services. People take better care of their teeth. Prescription utilization versus generic utilization is another good example. For years organizations asked people to use generics and told them how much money the company would save if they used generics, but it was not until employees saw a pretty dramatic difference between the co-pays for generics versus the co-pays for branded drugs that companies began benefiting from the shift in consumerism to utilizing more generic drugs.

A final example is pension plans versus 401(k)s. For decades, the norm was to have a pension plan and your employer would pay you after you retired. And, as that shifted to a 401(k) model – you put money away, we’ll match it – it shifted the responsibility for post-retirement security to the individual versus the expectation that the company I work for is going to take care of me regardless of how I behave.

I believe we are just on the forefront of that happening in health insurance, where it’s not a cost shift thing. It’s simply shared responsibility. And, as that message of shared responsibility takes root, there are people who are going to say, “Well, you just shifted the cost to the people who refused to do anything about their personal health or their preventative risks.” And you could absolutely look at that and say, “I guess that’s one way to look at it.” But, the lens we look at it through is really more in line with the concept of transparency and shared responsibility. And for those who have a hard time accepting responsibility, they will likely be resistant to this change because their perception skews towards entitlement.  

3) For a small to midsize business (SMB) with limited resources, how does a SMB choose what aspect of wellness to focus on and what role does a company like Bravo Wellness play in that decision making process?

There is a value in having some type of wellness program regardless of the size of your organization. However, when you talk about the concept of workplace wellness, it is important to note that it is enormous and complex. For example, you might be looking at something as basic as smoking and say, “Well, you’re going to add years to the end of your life if you quit. Don’t believe us? Here, we can show you all these studies of morbidity rates improving if you stop smoking.” But smoking is not the problem, in this case it is a symptom of severe depression. I mean the last thing on their mind is living longer, and we are discussing morbidity. We are making all these assumptions that what is important to us is important to them.

There is not a one size fits all unfortunately. What I have seen is that where you might see fantastic results in one environment, you take that exact same program and put it in a different company, with a different environment and culture, and it could fail. An environment that is based on teamwork, and very collectively working towards common goals adopt things differently than siloed organizations. Bravo Wellness helps organizations think through what they are trying to accomplish. What has been surprising for me is how many companies want a wellness program, but have no idea what they’re trying to accomplish. If your goal is to try to be recognized as the “healthiest employer in your city”, what does that mean to you? Your health related costs are going up 20% a year but the health of your organization has vastly improved, that might be what you are after. An assessment needs to be done of the organization: What are they trying to solve for? How will they handle those issues that will appeal to the broadest number of people? If further down the road they still have some people who aren’t making any good choices, how will they pivot?

4) The definition of wellness coined in 1995 by Anspaugh, Hunter, & Mosley talks about wellness in the context of the workplace as ‘a composite of physical, emotional, spiritual, intellectual, occupational, and social health’; Given the complexity of what constitutes one’s “wellness” is it even realistic to expect workplace wellness programs to encompass all the components of wellness? Or is it suitable to assume that programs should focus on maximizing efficacy by doing a few things really well in concert with other wellness providers (outside of work)?

How wellness is defined and how you start to educate your population, you treat this as a mission. I like the fact that we’re not just saying wellness means the five biometrics mandated by legislation. Like in our case, we’re limited somewhat in that by way of regulation we really only have five things that we can tie into and have contingent incentives or penalties against. That doesn’t mean in any way we are not trying to identify other risks, educate people, and equip them to take positive action for their emotional health, spiritual health, and other things that could really have a profound impact in their life. You should put it all out on the table. Where you’re going to focus your actual interventions, after all my experience on the TPA side as a buyer of wellness programs, and then our experience in the last six years facilitating them …I have landed on saying: educate and equip, provide the tools and resources, but reward people for results, not how they chose to get there.

An important consideration is the privacy aspect of wellness, employer’s limitations on asking certain wellness questions (even if well-intended), let alone obvious legal exposure regarding spirituality and things of that nature …there’s certain angles here that no employer, after they talk to their attorney, are going to be willing to do or should do for that matter.

5) Looking back at your extensive experience in the industry, what are the key elements that contribute most to the success of a corporate wellness program? Have there been any surprises?

The sole message of equipping people versus mandating how they need to get to “wellness”, the right tools, and a focus on results is what I have become more and more convinced is critical. Trust throughout the entire organization is also important. There needs to be transparency, so the employer can share the true cost of benefits. For example, a company says, “We get charged $1,100 a month from Blue Cross. We’re paying 80% of it. But, we are willing to pay up to 90% of it if you do these things.” It is eye-opening for a lot of employees who had no idea how much the employer was already paying on their behalf and what they were basically getting for free. And that certainly adds to their acceptance of responsibility, as well as better buy-in which is at the heart of success of any wellness program that is used as a tool to improve some aspect of employee well-being.

Interview with Dr. Chris Bingham about Fostering Innovation

Dr. Chris Bingham is an award-winning professor of Strategy and Entrepreneurship at the Kenan-Flager Business School at the University of North Carolina. Dr. Bingham received his undergraduate accounting degree and MBA from Brigham Young University, and received his PhD in strategy, organizations and entrepreneurship from Stanford University. Currently Dr. Bingham’s focus is the process of accelerated learning in the context of seed accelerators. Dr. Bingham’s complete biography can be found here.


1) You have presented how one can use the Nadler and Tushman’s Congruence Model to foster and/or improve innovation within an organization. Is this more a function of a healthy organization being more innovative, or are there certain aspects specific to the Congruence Model that lend itself to creating an innovative environment within an organization?

There are different components of the Congruence Model, right? You’ve got task, you’ve got structure, you have got people, and you have got culture. And, sometimes, people will tweak this model a little bit, but those are basically the four parts. The whole point is, if one of them is off-kilter, then you can have some problems.

So, I believe in the model. I believe in the congruence. If I were to look at one of the elements that I find the most intriguing, it’s probably structure and here is why: Because I believe the counter-intuitive insight when you’re trying to innovate is that when markets become more dynamic, more ambiguous, often the best strategies are the most simple. And that’s an insight that a lot of people don’t get because what happens over time in organizations is you build up more and more structure – that is, more policies, more rules, more manuals, more routines… what that ultimately does is create inertia. It creates bureaucracy. It makes it difficult to change. Organizations are trying to become more efficient and that’s what the structure does, organizations become efficient but at the expense of flexibility.

So, if you think about a spectrum, you’ve got efficiency on one end and you have got flexibility on the other. There is a natural force pushing firm imperceptibly towards efficiency at the expense of flexibility. And so I think, as leaders, what you have to do – if innovation is key for you – is you’ve got to deliberately pare back structure. I’ve been looking at innovative companies across many different industries, and what you see is they will provide a little bit of structure, but within that structure, there’s a lot of room to adapt. For example, Yahoo, in its early years had a few simple rules shaping their partnerships: (1) don’t do deals if it jeopardizes the user experience, (2) no exclusive deals, and (3) the product or service must be free.  Those rules provide some structure and guidance (securing some efficiency), but within those rules there was a lot of room to adapt.

2) You have also stated that there is evidence to suggest a diverse team dynamic promotes an innovative culture (highlighting Under Armour’s Board as an example of this). In addition to simply gaining expertise outside of an organization’s industry, are there other considerations or strategies one can use in building an effective team through diversity?

You can think about diversity from lots of different angles, right? Functional diversity, gender diversity, age diversity. But, I believe the key point here is trying to find people who disagree with you. And that’s a little non-obvious. You want to create task conflict (i.e. when people disagree with you) without creating affective or personal conflict. Task conflict often is helpful because an organization can avoid premature convergence on what might be a suboptimal plan. It keeps you from jumping into things too quickly. Also, studies show task conflict leads to improvement in team decision making effectiveness. And when this works, team decision making effectiveness improves not only satisfaction with the team, but also team performance.

The other question is, how can you find these sort of disagreements naturally occurring within organizations and what do you want to do about it? I think what you want to start looking for is internal disagreements that might come up when you are trying to develop a new service or a new product. Marketing and finance almost always are going to support the status quo because their incentives generally come from knowing the existing product. New innovation presents a risk to their livelihood.

Engineers and R&D folks are often the ones who will be pushing new and disruptive ideas. They are looking for what’s going to be best from a customer perspective and/or from a product perspective. This natural tension is good. Look for those natural disagreements to find balance.

Diversity is also key for brainstorming. A dictum at IDEO is, “Go for quantity” in its brainstorming sessions. So, it’s not untypical in an hour-long brainstorming session at IDEO for them to come up with ~100 different ideas for something. Without this practice guideline what will often happen is the power players in the room are going to get out their ideas first. And, then other players in the organization start conforming. They are going to start saying, “Oh, yeah, that’s a good idea.” Any idea they might have had gets stifled and factions start to form around the power people’s suggestions and you don’t get much further than that. And, then, it becomes just sort of a power game. In contrast, if you can just start saying, “Hey, look. Let’s get out 30 ideas in the next 30 minutes and let’s get 100 ideas in the next hour,” what happens is it quickly becomes more objective. So, you actually depersonalize it by getting high numbers of ideas out there from a diverse group maximizing the organization’s available choices.

3) One way an organization can successfully tap their market for ways to innovate is to ask themselves, “what job is our customers hiring us for?” What are some other key strategies an organization can use to tap their external market for ways to innovate, rather than simply continuing to iterate and improve?

There is an innovator’s series of books: Innovator’s Dilemma, Innovator’s Solution, Innovator’s DNA. There is now a new one out, Innovator’s Method. What I believe these books are missing is an understanding about the social innovator. Not social in the sense of social causes, but in the sense of innovators that tap community. Crowdsourcing is a great example. For example, Monopoly fans voted on Hasbro’s Facebook page to get rid of the old flat iron playing piece and adopt a new cat playing piece instead. Scrabble players vote on which new word to add to the Scrabble dictionary. It is a really powerful channel when an organization taps into its external constituents.

The other thing you’re starting to see, from a social perception, is innovation tournaments. Netflix did this a couple years ago to improve one of their predictive algorithms. My understanding is it was a very diverse team of academics and industry experts that came together for this. You are starting to see more of these innovation tournaments produce some really amazing ideas. Customers prove to be really helpful for insights. They can help you identify problems and solutions in ways that prove difficult for internal resources (for a variety of reasons).

4) It appears that health-related wearables are in the process of “crossing the chasm” and are here to stay. In your opinion, what is important to get right as we move on from early adopters, to catering to the early majority regarding these products?

So I think your question, simply put is, “how can you help the early majority?” In other words, how can you help cross the chasm, right? What do you need to do to help this new market? If you look at innovation diffusion theory, it’s actually a pretty old, well-established theory. We know early adopters are a fairly small group, where the early majority is a bigger category (more than double that of the early adopter group). If you look at differences between early adopters and the early majority, what you will see is the early majority is more pragmatic, a little more cautious, and want some proof of benefit. What they really want is the understanding that this is going to become a social norm, not just a benefit. They want refined technology to improve ease and convenience. They want a lot of stories of the innovation’s effectiveness. An interesting thing that builds on this diffusion model is actually looking at how adoptions occur. And what you’ll find – and this is actually pretty interesting – is in the early years adoption is generally based on mass media, but when you start hitting the early majority, what becomes really critical is adoptions occur more due to interpersonal communication. The social component therefore becomes really critical to get the early majority onboard.

5) The way people consume fitness is changing, especially with regards to modality, delivery, and provider. Michael Porter says a disruptive technology is, “one that would invalidate important competitive advantages.” Now that you have examined the health and wellness landscape, what are some of your predictions about how people will consumer fitness and wellness over the next five to ten years, and what does that mean for traditional health clubs?

I wish I could look into my crystal ball and get a more precise answer for you. There are broad trends that are affecting lots of different industries we can discuss. One key trend is mobility. If you look at the time spent in mobile apps in 2014, it’s gone up 50% from 2013. And that’s crazy, 50% in one year, and most of this is coming from just mobile apps. How does that exactly work for the fitness industry? I’m not quite sure. But, I think ignoring it or assuming that you don’t need to address it is not the right approach. So, I think that’s one very big influence that’s going to affect how people consume fitness and wellness over the next five to ten years.

Another trend is the idea of accessibility and simplicity. Some think of innovation as additive. I’m adding new features, new services, or whatever. Yet some companies like Google are innovating by subtracting things, and pulling things out, and making their product simpler, and more accessible. With Google Docs you don’t get all the features of Word, but you get the most essential ones. I think if you think about these three big trends of mobility, simplicity and accessibility; I think that’s going to really influence the way that people consume fitness and wellness over the coming years.