What Does Google Health's Failure Have To Do With Watergate ?

I like good movies for a lot of reasons but often for the memorable quotes you get from time to time. I enjoy sharing a line from an iconic film at a cocktail party when referencing the latest topic Du jour. In All The President's Men, Deep Throat, the government informant who spoke in riddles and metaphors in response to Woodward and Bernstein's questions recounted, "follow the money". Following the money is often good advice and is one of those quotes that I love to use. It explains a lot of things.

So what does Google's recent announcement that it is discontinuing Google Health have to do with Watergate ? Just "Follow The Money".

I a March 2011 post "Where Is Google Health In The Evolution Of Wellness ?" I talked about the promise of technology in evolving health care and fitness into wellness. Interestingly I received a number of communications following the post from people who seemed to know Google Health was being shuttered. But why would this promising idea get the shaft ? In a recent Technology Review article , How A Broken Medical System Killed Google Health , correspondent David Talbot wrote:

At the end of this year, Google Health will flat line. The service couldn't encourage many people to import or analyze their health data, and experts say its untimely death is, in many ways, an extension of U.S. health-care providers' failure to share data across institutions, or make it easy for patients to obtain it.

David's tag line to the article said it best, "Google would have had to fix a balkanized U.S. health-care system to make the service catch on." He's right and I know it first hand.

I recall my treatment for colon cancer and repeated and unsuccessful attempts to get my group of five physicians to utilize Google Health. Despite Quest Diagnostics providing access to my diagnostic records electronically for free on Google Health, not one my physicians knew about it or cared to use it. Instead I would have to suffer duplicate tests, hauling records around and harassing people to fax results. Even more interesting was a strategic session with leaders in the Medical Fitness field. Not one of the participants knew what Google Health was. Amazing but why ? Why would a system that offered real solutions to a broken system be so unfamiliar to so many ? Follow the Money.

The failing of and lack of awareness of solutions like Google Health in either the "Sick Care" system or the "Wellness" prevention system highlights the obvious: there is NO money in improving health outcomes. As Bryce William's recent article in Fast Company "There Is No Such Thing As A Health Care Consumer" points out about the failure of Google Health:

...the underlying cause is that there is no such thing as a consumer in the American health care system today. A consumer is someone who uses personal dollars to buy goods and services for his or her own use. In our health care system, the users of medical services are, of course, individuals. But users don’t pay the largest share of costs for these services. Employers, the government, and health insurance companies do. So while people may be highly concerned about quality medical care, most are not motivated to manage costs.
 With that fundamental understanding, it’s easy to see why Google Health failed.

And that is the problem, its up to consumers, who have no real incentive to improve their health, and its up to delivery systems that have no incentive to deliver it. So when I ask What does Google Health's Failure Have To Do With Watergate, you might just "follow the money".

So tell me, Bryan O'Rourke, why do you think Google Health failed ? Why has the U.S. and world's populations become less healthy while the cost of care sky-rockets amid a push for healthier lifestyles by the fitness industry. Is it a broken system ?

Do You Have A Social Media Policy For Your Organization ?

One of the biggest questions I get from fitness industry leaders including YMCA executives and health club managers and owners is this: "Can We Control How Our Employees Use Social Media and How Do We Do It ?" The main point of the question is concern over what an employee might do given how that could reflect on the business.

its a good question and it really involves a few issues rolled into one.

The first is this: "What is your social media strategy?;

The second is, "What is your culture?"; and

The third question is, "Where is your business located?"

Many organization's don't really have a clear social media strategy and until one is established how you might benefit from or be harmed by employees participation in the strategy will be unclear. You need a plan with defined outcomes. If your employees are very clear about what your brand represents and how you want and need to communicate that to the world, implementing an integrated policy around that strategy is much easier (see my post on the transformation of customers and organizations - Empowered).

The first point closely relates to the second of culture. How much control do you really want to have ? Some organizations are far more controlling than others. They might chose to govern and control ALL content regarding their business in the social space. While this often is very short cited and limits the upside of social media, it would have a significant implication on the rules. Some organizations have more open cultures. I've actually seen a social media policy for employees that simply said, ""Be on brand, be interesting".There isn't a cookie cutter answer and what is even more challenging is that good social media strategy requires continual learning, so policy and practice is going to change over time. You need flexibility.

Finally, the legal rules on employment policies vary from state to state. You will need to reference your legal counsel to take a look at the policy initiatives you have to confirm they are enforcable and act in tandem with your overall employment policy practices.

Here are many examples of social media policies for you to review. Its a great tool. My thanks to the Social Media Governance Organization for sharing them.

So tell me, Bryan O'Rourke, does your organization have a social media policy ? What is your culture like and how has social media played into it ? Watch the video below.

Being Wrong - A Key To Innovation

How does it feel to be wrong ? How does it feel to realize you were really really wrong ? Culture trumps strategy and often a leader's ego is the BIGGEST stumbling blocks to an organization's progression and important innovations.

Watch Kathryn Schulz , @wrongologist and author of Being Wrong, Adventures In The Margins Of Error talk about culture and  common attitudes about right and wrong and the problem it creates. In my view its THE key problem to industries, organizations and people progressing to new and better ways of solving our biggest challenges.

Tell me, Bryan O'Rourke, what do you think about being right and being wrong ? Do you agree with Kathryn's views ? Is ego a big obstacle to you or your organization progressing to a new level ?

Update on 2011-06-24 08:12 by Bryan K. O'Rourke

I POSTED THIS MESSAGE FROM DAVE BALTER AS A FOLLOW UP TO MY POST ON BEING WRONG AND IN PARTICULAR AS IT PERTAINS TO LEADERS AND EGOS.

The Humility Imperative: CEOs, Keep Your Arrogance in Check

Dave Balter's ego almost ruined BzzAgent, his fourth start-up, before Tesco's Dunnhumby bought it for a reported $60 million last month. Here, he implores entrepreneurs to find humility.

This is a message to every entrepreneur, CEO, and leader: Dig a hole, throw your ego into it, and pour concrete on top. Find humility instead.

Hello, my name is Dave Balter, and I'm a CEO who used to be totally ego-driven. (There. I said it.) This ego gave me the confidence to be a great leader, but also nearly destroyed BzzAgent, the word-of-mouth pioneer I created. Had I not dramatically adjusted my leadership style, in all likelihood my partners and I wouldn't have found our way to a successful exit: This spring Tesco subsidiary Dunnhumby acquired BzzAgent.

I believe—due to an inflated market, easy cash, and entrepreneur glorification—that there are thousands of companies destined to fail if their leaders, who may feel like business deities today, don't immediately turn their hubris into humility. 

I learned the hard way that a CEO isn't God. I launched BzzAgent, my fourth start-up, in 2001. By 2005 I had a tiger by the tail: Venture capitalists were wooing us, competitors studied us—and the media swooned. BzzAgent was featured on the cover of The New York Times Magazine and the company was the subject of two Harvard Business School cases. I was called a genius, and I believed it: In 2004 we generated $3 million in revenue. That rocketed to $8 million—profitably—in 2005. Our clients included some of the biggest companies in the world—from Procter & Gamble and L'Oreal to Penguin Publishing. In January 2006, the company closed a groundbreaking $14 million round of institutional financing.

At the same time, my entire style evolved from confident to cocky. When I heard rumblings that members of my family were put off by my "inflated self-worth because of BzzAgent," I chalked it up to being shortsighted. When I interviewed job candidates, I was less conversational and more confrontational. I refused to attend conferences that didn't choose me as a keynote speaker. By the time 2007 rolled around I was blinded by my own press and felt BzzAgent was unstoppable. Sure, I thought I listened to others, but looking back I realize now the only voices I heard were the ones in my head: I made every product decision, shunned investment overtures, and ignored competitors as wannabes and copycats. I believed my vision was untouchable. These were signals of CEO behavior that could doom any company, even in good times.  

Then came 2009. The recession started to pull against BzzAgent. It was a tough period for many businesses, but it was especially hard for us because of my outsized ego and the way I was leading the company. New rivals emerged and social media platforms evolved. My attitude prevented us from seeing changes coming until they were choking our business. Innovative clients who wanted to try new concepts didn't get it. In the world according to Balter, there was only Balter's view. 

BzzAgent's revenues flattened, which made our budgeted expenses unsustainable. In 2009, we let go of more than 40 people—nearly half of our staff—in three separate rounds of reductions. Talented 'A' players who weren't let go ended up taking other jobs. My partners and I strategized and debated and fought and, in scarier moments, wondered if this was the end of the road for BzzAgent. 

Board meetings became tense as we recognized the problems stretched beyond the economic climate, but struggled to identify the root cause. After one such meeting in early 2010, our chairman pulled me aside and said it was the worst meeting we'd had in five years but not because of how the business was faring. My attitude was the problem. That was the wakeup moment. 

Dig Deeper: More on Leadership & Managing

The Humility Imperative: How I Changed

I was forced to grasp that I didn't have all the answers. In fact, I had to face the fact that I was pretty lousy at some things—the process of product development, for instance. Humbled, I started to change my mindset. I became a student and a sponge. I sought and analyzed as many different perspectives, management styles, and corporate structures as possible. I joined a CEO group and learned to listen to and communicate with a dozen other leaders who had experienced similar challenges and understood the reality of needing to evolve. 

I changed the way I made decisions, too. Rather than just say I valued input from employees and peers, I followed their opinions. I turbocharged BzzAgent's social media efforts, and embraced social networks as an important tool for our volunteer citizen marketeers. I even started housing start-up companies in our Boston office. From individuals to recently funded companies, I literally surrounded the company with other innovators, ideas, and points of view. Gradually, my inward gaze turned outward. 

With persistence, BzzAgent came out leaner, better, smarter, and stronger. While the effort we made to redefine our vision, and become a client-driven business helped us tremendously, none of it would have happened had I not embraced vulnerability and humility. 

I worry now that other entrepreneurs are about to repeat my mistakes. There's a bubble brewing in the rich and frothy start-up market. A new class of CEOs and entrepreneurs are finding it easy to get funding from top-tier VCs or big-name executive backers from Facebook or Groupon. Their names pop up in TechCrunch and AllThingsD.com, and they're on the map. They're being recognized at the Google I/O Developer Conference or slapping one another on the back over bacon and eggs at Henrietta's Table, a Cambridge gathering spot for the best and brightest. Man, oh man, they're even dressing up for fashion shoots. The biggest concern for the class of 2011? A dearth of talent to build bigger teams now. But the easy money and the fashion shoots will dry up. Cheerleaders will disappear, rivals will emerge, and the market will become less forgiving. Arrogant CEOs won't see the changes coming.

Dig Deeper: Becoming A Better Leader

The Humility Imperative: How to Make It Work for You

The humility imperative is simple: If you're an ego-fueled leader, find humility today, before it's too late. Disregard the fawning fanboys and king-like power you feel right now. Instead, choose to recognize your place in the universe is no more important than anyone else's. Know you can learn from every single interaction—no matter the person's credentials. Understand that your competitors are smart—perhaps (gasp!) even smarter than you. Believe that media glory is fleeting. Remember that fundraising is a tactic, not a strategy. Your reputation isn't forever golden because VC firm Kleiner Perkins Caufield & Byers backed you. Here's what matters more: You treat your employees with kindness; You are willing to be wrong; and—yes, this is hard—you share the spotlight. 

Having trouble admitting your ego is out of control? Ask your family, friends, or most trusted adviser. Find someone willing to tell you straight. Your business will be much better for it and you'll truly have the opportunity to create something great. Humility will prepare you for the endurance test to come. It will give you the flexibility to create a business that can thrive in good times and survive the bad.  

Have humility, or your hubris will have you.

Dave Balter is the founder and chief executive of the social marketing company BzzAgent. He is also a founder and executive chair of skill-testing platform Smarterer, and an investor or advisor to a dozen start-ups.



Mobile Trends Are Creating Change & Opportunities For Health Clubs

Mobile Trends And Their Impact On Health Clubs

View more presentations from Bryan ORourke

Check out this PPT deck on Mobility trends and their impact on the health club business. Tell me what you think. Are you laying plans for the future of mobility ? You should.

Bryan O’Rourke is a health club industry expert, technologist, financeer, shareholder and executive in several fitness and health club business service companies and has advised many global brands on strategy and execution. He is also a partner in The Health Club For Women and Chairman of the Medical Fitness Association’s Education Committee. To learn more contact Bryan here today .

Mobile Trends And Fitness - The Future Is Here

Dan Frommer's recent post, "The Future Of Mobile Is The Future Of Everything" quoted Matt Galligan, co-founder of SimpleGeo, a location services company. When asked about the future of mobile Matt said, "In my opinion, the 'future of mobile' is the 'future of everything'.", hence the article's title. Matt's right and in the world of fitness and health he's even more right.

Check out what 20 thought leaders are saying about mobile trends here and tell me, Bryan O'Rourke, how are you planning for the mobile revolution when intelligent devices like smartphones and tablets will be THE key way people interact with the web and manage major aspects of their lives ? Do you realize how much Internet search is being conducted using mobile devices ? Do you know how to create a unique application for your business for under $500 ? Is your website mobile friendly ? For more interesting tidbits check out this article.