Tag Archives: ritz carlton

One question to help you innovate how you innovate

break out of your comfort zone to innovateHow do you innovate how you innovate? Easy, stop doing what worked before and start looking for insights outside the mainstream.


Because I haven’t found any, and conduct them myself, a couple of weeks ago I wrote a short guide on how to conduct outside industry benchmarks for innovation. Part of this process is to consistently step out of your domain and learn how others approach similar business challenges; a few years ago I wrote about my experience at Disney Animation Studios.

The point of benchmarking outside your industry is to overcome the human tendency of letting what we know limit what we can imagine; to look outside your domain for inspiration.

What business are you really in?

It’s not the most obvious one.

Do you think Zappos is in the online retail business? Not according to Tony Hsieh:


Because they’re in ‘the stories & memories business’ they operate differently than traditional retailers. In their eyes they don’t compete with Amazon, they compete with the Ritz Carlton.

Empathy drives experience innovation

The Walt Disney Company

Image via Wikipedia

Recently I was in Mexico to have lunch with a friend. I went to pick him up from from a meeting but had to wait a few minutes outside of his offices. As I was waiting for him I parked in front of a pharmacy and it dawned on me that in this particular area there where five pharmacies in about a half mile radius. These pharmacies all looked alike, they were not from the same brand and the only distinction was the color of their walls. I have no doubt they operate the same way. It got me thinking about how I could differentiate one from the others…

Experience innovation is a difference maker

Innovating an experience improves or reinvents the customer experience in the purchase or usage of a product or service. Companies such as Disney stand out as a prime example of what it means to innovate a customer experience. Apple is right there too with their Apple store. The reason both stand out is because they’ve , says Scott Gould.

Another great example of a company that stands out is Umpqua. We all know what a traditional bank looks like, well :

Umpqua’s 15-year track record of growth has little to do with the products it markets, which are virtually identical to the products offered by other banks. What’s distinctive about Umpqua has to do with how it offers those products — its commitment to reimagining the experience of interacting with a bank. Davis puts is this way: “If you took a person, blindfolded them, sent them to a bank, and took the blindfold off, 99% percent of them would say, ‘I’m in some bank somewhere.’ We want our customers to say, ‘I’m in an Umpqua bank.’ We don’t want the experience of banking here to feel like banking anywhere else.”

That’s why Umpqua designs its branches to appeal to all five human senses.

What Umpqua understands it that to be and stay relevant, you have to be different in every sense of the word. Not just ‘be different’ as marketing ploy, but ‘do different’ and make a difference. In the video below, Fast Company Co-founder, Bill Taylor starts talking about Umpqua around the 9 minute mark to help clarify my point (watch the whole talk, it’s worth it):

See what I mean?

What Not to be

Slice Perfect is another fine example. They’re not your typical pizza place. Just like Umpqua they started by asking ‘’. The result is a different kind of pizza place that goes deeper than just looks. When searching for a sustainable competitive advantage, experiences are the hardest to copy. No experience is the same. How many have tried to copy Disney and failed? Starbucks?

The Killer App of Trust

Trust is an often overlooked competitive advantage. The Ritz Carlton knows this very well and have been creating trust with it customers for a long long time. They understand than . This means that that by creating a level of trust between a companies employees and it’s customers, authentic value in the form of better service can be delivered. That’s not manufactured value, it’s real authentic. Zappos also understands that by empowering employees to develop their own customer relationship breakthroughs it makes the customer experience more authentic. The result is more trust with customers.

Experience innovation is also difficult to accomplish. Jeffrey Phillips of OVO Innovation says:

Customer experience innovation requires understanding what customers value in the “touch points” and interactions with your products, services and your firm, and placing the right investments on the most important and valuable touch points.  Customer experience needs to consider each “channel” a customer may use to interact with your firm:  retail locations, telephone, web, email, direct mail, advertising, etc.  The total customer experience cuts across a number of vertical silos within many organizations, including sales, marketing, products and customer support and service.

Authenticity is the result of human innovation

If you’re familiar with the Experience Economy, then all of the above is nothing new. But if you’re not, in the video below Joseph Pine talks about how customers really want an authentic experience:

So how do you start thinking about innovating your own experience?

Remember the What Works Matrix? Here’s the time to use it. I’ve already given you some examples of companies that have distinct customer experiences, you can pick them apart for ideas. You can then .

wrote a great presentation of the 4 practical steps he took to create . You can use the customer experience cycle map to look at where a ‘shake up’ might come useful to deliver a better experience to the customer. Once you identify those critical touch points you have your challenge that needs to be addressed, it’s time to go to the What Works Matrix and start searching for alternatives that you can the bring over and implement yourself.

Though going through these steps will not result in instant results, it’s an exercise in opening your mind on how your customers experience you. Once your mind is open you’ll be a lot more concerned about your customer experience and start thinking up ideas in no time.

Remember: Empathy drives experience innovation

Break out of orbit!

Disney, Apple, Ritz Carlton, Starbucks all provide a distinct experience when compared with the ‘old way’ of doing things. If you sell commodities (like Starbucks) you can change how your customers purchase or use your products or services to create a distinct customer experience.

The point is to understand this. Ask yourself: What don’t you want to be? Do you want to be like your competitors?

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The power of bringing in an outsider for innovation


, CEO of Rubicon Consulting, that if organizations want to be innovative they should stop hiring the same type of people just to meet the requirements of the job position:

It seems to me we ought to also know how to get diverse points of view into the system, because that is what allows us to see things from different angles and fundamentally shift our approach from seeing the problem the way it’s always been seen (and thus unsolved, one could presume) and see it afresh to create the shift in viewpoint that allows for a new creative act.

I think she makes a very important point, hiring an outsider or bringing in someone who is hasn’t worked in your industry, who has no experience in what you do can bring in a fresh perspective that can yield new insights. For example Henry Ford West Bloomfield is a well known hospital in the Detroit area, they recently built the first hotel since it’s founding in 1915. The new hospital is anything but a hospital, it was and to do this they brought in an outsider to spearhead the project:

The imitate to benefit syndrome gets you nowhere

Every once in awhile, I get an email that asks me to give out ideas (strategy) that previous clients used to achieve a particular goal. I’ve attached part of an email conversation below. It only explains part of the story, but let’s just say that I’m being asked for a secret recipe that they can plug-and-play and voila!

I can give you this information, but it’s no use to you because if all you want is to try to copy their success, let’s just say you’re going nowhere.

Best practices that worked for someone else don’t necessarily mean they’ll work for you. You shape your business based on your own strategy that works to your unique mix of strengths and weaknesses.