In this special episode of the Experience Strategy Podcast, Joe Pine shares with Dave and Aransas background about the book! To celebrate the release of his new book, The Transformation Economy. The conversation traces the book's origins from the final two chapters of The Experience Economy, explores why the world is finally ready for this idea, and unpacks key frameworks — including encapsulation (preparation, reflection, and integration) — that make experiences truly transformative. The trio also discusses the role of AI in enabling transformation, why businesses must foster human flourishing, and who stands to benefit most from reading the book.

Why now for The Transformation Economy? Joe waited over 25 years because "the world wasn't ready" and he "didn't know enough." Research through Stone Mantle's collaboratives, the World Experience Organization, and post-COVID shifts toward meaningful experiences signaled the time had come.

Catalysts for transformation. The most prevalent catalyst is trauma — illness, loss, job changes, retirement. These disruptions create the conditions where people seek to see, do, and be differently.

The four spheres of human flourishing:

1. Health & well-being
2. Wealth & prosperity
3. Knowledge & wisdom
4. Purpose & meaning

Encapsulation — the essential framework (Chapter 4): To turn a memorable experience into a transformative one, you need three layers around the core experience: preparation (priming beforehand), reflection (making meaning afterward — which retroactively increases the value of the experience), and integration (sustaining change over time).

The business model problem. Most companies get paid for the event, not the outcome. Shifting to outcome-based pricing — as McKinsey is doing with AI projects — aligns incentives with lasting transformation.

AI as a transformation enabler. AI makes the hardest parts of delivering transformation (especially ongoing integration and support) dramatically more accessible and affordable.

• Companies in education, finance, health, and well-being
• Any business focused on improving the lives of families and individuals
• The creator economy — creators already doing transformation work who need frameworks to do it well and realize its full value

• "The entire raison d'être of business is to foster human flourishing." — Joe Pine
• "Reflection retroactively increases the value of the experience." — Joe Pine
• "If you don't do it, it's just lazy." — Aransas Savas, on using available technology to encapsulate experiences

• The Transformation Economy by Joe Pine
• The Experience Economy by Joe Pine & Jim Gilmore
• Stone Mantel's Experience Strategy Collaboratives
• The World Experience Organization (founded by James Wallman)
• Arrival 360 Conference
• Daniel Kahneman's experiencing self vs. remembering self
• McKinsey's outcome-based AI pricing model

Podcast Sponsors:

Learn more about Stone Mantel

https://www.stonemantel.co

Sign up for the Experience Strategist Substack here:

https://theexperiencestrategist.substack.com

Summary

In this episode of the Experience Strategy Podcast, hosts Aransas Savas, Joe Pine, and Dave Norton discuss the burgeoning field of longevity and transformation. They explore the aspirations of individuals seeking to live longer and healthier lives, the shift in healthcare from a reactive to a proactive approach, and the role of social proof in driving transformation. The conversation also touches on the evolution of trust in the age of social media, the changing narrative around aging, and the future accessibility of longevity solutions.

Takeaways

• People aspire to live longer and healthier lives.
• The healthcare industry is shifting from fixing problems to promoting flourishing.
• Social proof is becoming increasingly important in the transformation economy.
• Decentralized trust is shaping how people validate health claims.
• The placebo effect plays a significant role in perceived health outcomes.
• Aging is often misunderstood; many peak in their 50s and 60s.
• The evolution of science and brand is changing customer expectations.
• Wealthy individuals often drive innovation in health and longevity.
• The future of longevity solutions may become more accessible over time.
• Trust in brands is less centralized and more influenced by personal experiences.

Chapters

00:00 Introduction to Transformation and Longevity
03:10 The Ambition of Living Longer and Healthier
05:59 The Shift in Healthcare: From Fixing to Flourishing
09:07 The Role of Social Proof in the Transformation Economy
12:16 The Impact of Personal Research and Influencers
15:13 The Evolution of Science and Brand in Health
18:02 Reframing Aging: Opportunities in the Second Half of Life
21:14 The Future of Longevity and Accessibility

Podcast Sponsors:

Learn more about Stone Mantel

https://www.stonemantel.co

Sign up for the Experience Strategist Substack here:

https://theexperiencestrategist.substack.com

In this episode of the Experience Strategy podcast, hosts Aransas Savas, Joe Pine, and Dave Norton discuss the recent developments in AI leadership, particularly focusing on Sam Altman's 'code red' declaration regarding OpenAI's competition with Google. They explore the importance of experience in AI development, the frameworks that should guide AI companies, and the evolving expectations of users. The conversation delves into the distinctions between 'stupid', 'dumb', 'smart', and 'genius' AI, emphasizing the need for contextual understanding and anticipation in AI solutions. The episode concludes with thoughts on the future of AI personal assistants and the potential for a more integrated AI experience.

Takeaways

• Experience is the key differentiator in AI competition.
• Frameworks like 'Stupid, Dumb, Smart, Genius' help understand AI evolution.
• Consumer expectations for AI are rapidly changing.
• AI must focus on contextual understanding to improve user experience.
• The distinction between smart and genius AI is crucial for development.
• AI hallucinations undermine user trust and effectiveness.
• Companies need to anticipate user needs for better AI solutions.
• Personal assistant AI must fulfill its promise to users.
• The future of AI lies in creating integrated, context-aware systems.
• Experience strategy is essential for navigating the AI landscape.

Chapters

00:00 Introduction to Experience Strategy Podcast
01:26 AI Leadership and Experience Focus
06:22 Frameworks for AI and Experience Strategy
11:56 Understanding AI: Stupid, Dumb, Smart, Genius
19:24 The Future of AI and Personal Assistants

Podcast Sponsors:

Learn more about Stone Mantel

https://www.stonemantel.co

Sign up for the Experience Strategist Substack here:

https://theexperiencestrategist.substack.com