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Outrunning the Tsunami of Change
                        7 Keys to Leadership in a World of Unknowns




                                                    HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
it is 2000
                               HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Value: i.e.
                        Warren Buffett
                                 HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
2005
                        switches strategies

                                     HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
april 2008
                              HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
$1 = $.50
                        $1 = $1000
                               HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
2 years of income
                          in lost wealth

                                   HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
what did he see?

                                  HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
the rules changed



                                   HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
why?

                               HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
aspergers
                        syndrome
                               HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
tour guide

                        framework
                               HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
2011 Economic Score Card
                        •Construction & Real Estate
                         •renovation up 25%
                         •public sector flat
                         •private sector off 40%
                         •@17% vacancy in Denver
                        •8,000,000 jobs lost
                         •100,000 jobs/month to keep even
                         •Estimated 10 years to climb back to pre-2008 levels
                        •GDP @$14.5 trillion 2008 - 2011
                        •Companies are profitable but holding cash
                         •Government dysfunction creates uncertainty
                         •European uncertainty
                        •Our banking system is weak
                        •Financial industry has returned to pre-2008 behavior

                                                                                HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
2011 Summary of Score Card
                        •Low Demand
                        •More Output with Less
                        •Uncertainty
                        •Old Behaviors
                        •Lack of Confidence in Leadership
                                                     HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Friday, October 7, 11
Eras	
  of	
  Rule	
  Change


                                      Oral Age                 Print Age             Broadcast Age Digital Age
                                                Prin%ng	
  Press             Television             Internet
                                                    1455                       1950                   1992



                                       Ancient                 Modern Era                Contempory              Post Modern
                        Authority      Kings                   Elected                   Visionaries             Grass Roots




                                                      CRISIS




                                                                                CRISIS




                                                                                                        CRISIS
                        Credentials    Position                Credentials               Appeal                  Community
                        Influence      Elders                  Experts                   Influentials            Creatives
                        Commerce       Agriculture             Factory                   Service                 Federation




Friday, October 7, 11
7 Mega-Shifts
                        1.Turbulence and Uncertainty
                        2.Low Trust
                        3.Smaller Footprint
                        4.Generation Tsunami
                        5.Digital Natives
                        6.Mobility
                        7.Death of the Industrial Mindset
                                                            HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Different Seas     Different Ships




                                 The New Normal
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Silents: 1925 - 1942     (86-69)
                        Boomers: 1943 - 1960 (68-51)
                        GenX’rs: 1961 - 1981     (50-30)
                        Millennials: 1982 - 2000 (29-11)
                        New Silents: 2001 -


                                             HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Friday, October 7, 11
2011
                                       Boomer
                                        55%


                        Millennials
                           12%


                                      GenX
                                       33%

Friday, October 7, 11
Friday, October 7, 11
2018
                                Millennials
                                   48%




                               GenX           Boomers
                                24%             28%




Friday, October 7, 11
Digital Immigrants   Digital Natives




Friday, October 7, 11
Print
                Linear, Sequential, Rational,
                Hierarchical, Autonomous
         Broadcast
                Fluid, Fragmented, Emotional, Flat,
                Isolated
         Digital/Interactive
                Holistic, Non-linear, Whole-Brain
                Systems Thinkers, Interconnected,
                Self-Organizing


Friday, October 7, 11
What does it
                        mean to have an
                         organization of
                        mobile knowledge
                            workers?


Friday, October 7, 11
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Friday, October 7, 11
What is the Real Crisis?




                                           HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Friday, October 7, 11
Sutter Health Past Experience




Friday, October 7, 11
Results of a Broken System

           • $300-$500 billion annual WASTE
                 (buildingSmartAlliance)


           • 50%+ Waste in the System
                 (buildingSmartAlliance and Lean Construction Institute)


           • 70% Over Budget and Late
                 (Egan report)


           • 48% of Green House Gases
                 (Energy Info Admin Statistics and Pew Climate report)




Friday, October 7, 11
Uncovering the Hidden Waste
          • Labor = 50% @ 30% efficiency = 35% waste

          • Materials = 40% @ 70% efficiency = 12% waste

          • QTO = up to10% of the cost

          • Change orders between 2-10% of the cost

          • Contingencies up to 7%

          • Team Learning Curve = 5%+

          • 3-7% is lost in project cost reduction by not
            maximizing Construction Tax Planning


                                                            HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
7 Keys to Leading A Movement
               1.Motive: Adventure, Fear or Fed-Up
               2.Find Like-Minded Souls
               3.Get Cover
               4.Study the Outliers
               5.Connect the Dots
               6.Create Proof of Concept
               7.Be the Change You Want to See


                                                     HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Who we are so far…




Friday, October 7, 11
Built-In
      Sustainability
         Aardex - Signature Center
         Golden, Colorado

                                LEED Platinum

                   $3/sqft less than conventional
                   21% lease premium
                        - 45%


                        Tenants reported increased productivity


                                                                  HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Sutter Health Now Experience




                          Now                Before

Friday, October 7, 11
GSA
      Edith Green
      Wendell Wyatt

             HS Wright/Balfour & SERA
             500,000 square feet
             CMc
             47 months
             Save 15 - 27 months of design
             Zero energy




                                             HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Improvements

                   •Tools Alone - 5% - 7%

                   •Principles Alone - 10% - 15%

                   •Principles AND Tools - 15% - 30%+


                                                        HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
10,400
                          out of
                        4.7 million
                            HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Energy Savings Improvement

                                  35%                                                                                                                26 Year Payback



                                  30%




                                                            (38%)
                                  25%




                                                         EMPIRE STATE BUILDING
                                  20%
                                                                                                                            8.8 Year Payback

                                  15%                                                                                          11 Year Payback




                                                                                                 (21.5%)
                                                                                    (23%)
                                  10%                                                                                            12.2 Year Payback




                                                                                                            BEACH (15.8%)
                                                                                   CHICAGO


                                                                                                BALTIMORE

                                                                                                             NEWPORT
                                   5%




                                                                                                                             0      3   6      9     12   15    18     21   24   27   30
                                                                                 NAIOP study results*

                                         * NAIOP results under 25% improvements and average a 10 year payback



                                                                                                                                                   HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
A Brown Process
                        Can Not Create a
                         Green Solution

                                   HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Holy Grail




           Workplace Performance




                                   HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
2.0


                        HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Performance and Resilience
                        1.Cultural Alignment
                        2.Engagement
                        3.Well-Being
                        4.Work Flow
                        5.Health & Safety
                        6.Tools
                        7.Teams



                                               HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
7 Keys to Leading A Movement
               1.Motive: Adventure, Fear or Fed-Up
               2.Find Like-Minded Souls
               3.Get Cover
               4.Study the Outliers
               5.Connect the Dots
               6.Create Proof of Concept
               7.Be the Change You Want to See


                                                     HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
Call To Action

        •Shirtless Dancer? - Michael Burry

        •First Follower? - Mindshift

        •Wait Until there is a Crowd? - Green Movement

        •Sit and Watch?


Friday, October 7, 11
HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11
www.rexmiller.net

                        www.thecrerevolution.com

                           twitter: @mrmiller




                                                   HELPING CLIENTS EXPERIENCE TRANSFORMATION
Friday, October 7, 11

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Outrunning the Tsunami of Change

  • 1. Outrunning the Tsunami of Change 7 Keys to Leadership in a World of Unknowns HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 2. it is 2000 HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 3. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 4. Value: i.e. Warren Buffett HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 5. 2005 switches strategies HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 6. april 2008 HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 7. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 8. $1 = $.50 $1 = $1000 HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 9. 2 years of income in lost wealth HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 10. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 11. what did he see? HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 12. the rules changed HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 13. why? HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 14. aspergers syndrome HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 15. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 16. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 17. tour guide framework HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 18. 2011 Economic Score Card •Construction & Real Estate •renovation up 25% •public sector flat •private sector off 40% •@17% vacancy in Denver •8,000,000 jobs lost •100,000 jobs/month to keep even •Estimated 10 years to climb back to pre-2008 levels •GDP @$14.5 trillion 2008 - 2011 •Companies are profitable but holding cash •Government dysfunction creates uncertainty •European uncertainty •Our banking system is weak •Financial industry has returned to pre-2008 behavior HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 19. 2011 Summary of Score Card •Low Demand •More Output with Less •Uncertainty •Old Behaviors •Lack of Confidence in Leadership HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 21. Eras  of  Rule  Change Oral Age Print Age Broadcast Age Digital Age Prin%ng  Press Television Internet 1455 1950 1992 Ancient Modern Era Contempory Post Modern Authority Kings Elected Visionaries Grass Roots CRISIS CRISIS CRISIS Credentials Position Credentials Appeal Community Influence Elders Experts Influentials Creatives Commerce Agriculture Factory Service Federation Friday, October 7, 11
  • 22. 7 Mega-Shifts 1.Turbulence and Uncertainty 2.Low Trust 3.Smaller Footprint 4.Generation Tsunami 5.Digital Natives 6.Mobility 7.Death of the Industrial Mindset HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 23. Different Seas Different Ships The New Normal Friday, October 7, 11
  • 24. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 25. Silents: 1925 - 1942 (86-69) Boomers: 1943 - 1960 (68-51) GenX’rs: 1961 - 1981 (50-30) Millennials: 1982 - 2000 (29-11) New Silents: 2001 - HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 27. 2011 Boomer 55% Millennials 12% GenX 33% Friday, October 7, 11
  • 29. 2018 Millennials 48% GenX Boomers 24% 28% Friday, October 7, 11
  • 30. Digital Immigrants Digital Natives Friday, October 7, 11
  • 31. Print Linear, Sequential, Rational, Hierarchical, Autonomous Broadcast Fluid, Fragmented, Emotional, Flat, Isolated Digital/Interactive Holistic, Non-linear, Whole-Brain Systems Thinkers, Interconnected, Self-Organizing Friday, October 7, 11
  • 32. What does it mean to have an organization of mobile knowledge workers? Friday, October 7, 11
  • 34. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 36. What is the Real Crisis? HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 38. Sutter Health Past Experience Friday, October 7, 11
  • 39. Results of a Broken System • $300-$500 billion annual WASTE (buildingSmartAlliance) • 50%+ Waste in the System (buildingSmartAlliance and Lean Construction Institute) • 70% Over Budget and Late (Egan report) • 48% of Green House Gases (Energy Info Admin Statistics and Pew Climate report) Friday, October 7, 11
  • 40. Uncovering the Hidden Waste • Labor = 50% @ 30% efficiency = 35% waste • Materials = 40% @ 70% efficiency = 12% waste • QTO = up to10% of the cost • Change orders between 2-10% of the cost • Contingencies up to 7% • Team Learning Curve = 5%+ • 3-7% is lost in project cost reduction by not maximizing Construction Tax Planning HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 41. 7 Keys to Leading A Movement 1.Motive: Adventure, Fear or Fed-Up 2.Find Like-Minded Souls 3.Get Cover 4.Study the Outliers 5.Connect the Dots 6.Create Proof of Concept 7.Be the Change You Want to See HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 42. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 43. Who we are so far… Friday, October 7, 11
  • 44. Built-In Sustainability Aardex - Signature Center Golden, Colorado LEED Platinum $3/sqft less than conventional 21% lease premium - 45% Tenants reported increased productivity HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 45. Sutter Health Now Experience Now Before Friday, October 7, 11
  • 46. GSA Edith Green Wendell Wyatt HS Wright/Balfour & SERA 500,000 square feet CMc 47 months Save 15 - 27 months of design Zero energy HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 47. Improvements •Tools Alone - 5% - 7% •Principles Alone - 10% - 15% •Principles AND Tools - 15% - 30%+ HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 48. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 49. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 50. 10,400 out of 4.7 million HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 51. Energy Savings Improvement 35% 26 Year Payback 30% (38%) 25% EMPIRE STATE BUILDING 20% 8.8 Year Payback 15% 11 Year Payback (21.5%) (23%) 10% 12.2 Year Payback BEACH (15.8%) CHICAGO BALTIMORE NEWPORT 5% 0 3 6 9 12 15 18 21 24 27 30 NAIOP study results* * NAIOP results under 25% improvements and average a 10 year payback HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 52. A Brown Process Can Not Create a Green Solution HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 53. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 54. Holy Grail Workplace Performance HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 55. 2.0 HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 56. Performance and Resilience 1.Cultural Alignment 2.Engagement 3.Well-Being 4.Work Flow 5.Health & Safety 6.Tools 7.Teams HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 57. 7 Keys to Leading A Movement 1.Motive: Adventure, Fear or Fed-Up 2.Find Like-Minded Souls 3.Get Cover 4.Study the Outliers 5.Connect the Dots 6.Create Proof of Concept 7.Be the Change You Want to See HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 58. Call To Action •Shirtless Dancer? - Michael Burry •First Follower? - Mindshift •Wait Until there is a Crowd? - Green Movement •Sit and Watch? Friday, October 7, 11
  • 59. HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11
  • 60. www.rexmiller.net www.thecrerevolution.com twitter: @mrmiller HELPING CLIENTS EXPERIENCE TRANSFORMATION Friday, October 7, 11