Achieving Growth in the Health Care...
Transcript of Achieving Growth in the Health Care...
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Achieving Growth in the Health Care Marketplace By: Tom Arndt, Chief Market Development Officer, Bellin Health
Linda Roethle, MS, FACHE, Vice President, Bellin Health
Session Code: C16This presenter has
nothing to disclose
December 9, 2014
1:30 – 2:45 pm
Session Objectives
• Identify best practice research in new product development.
• Develop a systematic and intentional framework for growing the business.
• Streamline the time from product identification through offering the product in the marketplace.
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Agenda
• Overview of Bellin Health
• Imperative for Growth
• Strategic Alignment
• Best Practice Research
• Bellin’s Product Development Process
• What We Have Learned
• Question & Answer
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Pioneer Results
Comparative (Moody’s)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2010 2011 2012 2013 2014
Total Revenue Growth Total Revenue Growth Moodys
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Operating and Net Income
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2010 2011 2012 2013 2014
Operating Income Net Income
Compounded Annual Growth Rate since 2005 – 9.93%
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What Features/
Functions Should
Our Products
Have?
What Should
We Make?
How Will We
Make It?
What Do We Need
to Improve/
Redesign?
Do People Buy Our
Products?
Products and
Services
SYSTEM OF
PRODUCTION
SYSTEM OF
MEASUREMENT
Is It Made Well?
SYSTEM OF
IMPROVEMENT
SALES
MARKETING
- Market/Customer
Knowledge
- Organizational Knowledge
ORGANIZATIONA
L STRUCTURE
ALIGNMENT AND
DEPLOYMENT
ROAD MAP
BRANDS
Strategic Position
SYSTEM OF
LINKED MEASURE
Platform
Knowledge
Action
ResultsOFFERED / CHOSEN
“VOICE OF THE
MARKETPLACE”
External Focus
“VOICE OF THE CUSTOMERS”
External Focus
High Performance Health Care Model
The Business of Health Care
©Knox 2000
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“VOICE OF THE PROCESS”
Internal Focus
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Focus
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Research in Product Development
• Make operational excellence in your core business your cornerstone.
� Gives you funds to support new-growth initiatives.
� Core business can help uncover other customer needs that involve using products more effectively
• Treat growth as a discipline to be pursued at all levels throughout the
organization
• Develop many ideas
• Shift resources – new-growth businesses require people and assets that
differ from the core business in some important way
• Organize to suit the needs of the new business as much as the core
business
• Use selective acquisitions and alliances to catalyze growth
Research in Product Development
• Why are some companies so successful at product development and others not?
• Why do some new products fail commercially and others are successful?
• How do we position ourselves to move through this dynamic time in healthcare?
APQC Study in Dec 2010
• Healthcare Service Industries
• Telecommunication Electronics/Computers
• Software Consumer goods
Sources: New Product Development, Process Benchmarks and Performance Metrics, APQC, Performance Benchmarks, Product Development Institute Inc.; New Product Development: Embracing an Adaptable Process, QPCQ, Dec 2010
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Research in Product Development
New Product Development Success Rate
Ave Business Top 25% Bottom 25%
Success Rate 53.2% 70.00% 35.0%
Failure Rate 26..5% 10.0% 35.0%
Kill Rate 20.3% 50.0% 30.0%
On Time/On Budget
Projects on time 44.4% 70.0% 20.0%
Projects on Budget 56.5% 81.0% 40.0%
Source: New Product Development, Process Benchmarks and Performance Metrics, APQC, Performance Benchmarks, Product Development Institute Inc.; New Product Development: Embracing an Adaptable Process, QPCQ, Dec 2010
Research in Product Development
What does it take to consistently produce profitable new products?
• Document lessons learned and use to improve their product processes
• What worked well? What could be improved?
• Identify patterns that could help future projects be successful
• Identify opportunities for efficiencies in the process
• How to improve post-launch efficiency? Learn from it.
• Importance of reviewing the results of each new project
• Did we do the right things? Was the flow right?
• Did we have the right people? Right skills? Team Dynamics
• Adequate Resources?
• Decisions made, decision making process
• How efficient are organizations? Most are “somewhat” efficient.
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Product Development Process
Stage-Gate Product Innovation Process
Build Testing and
Scoping Business Case Development Validation Launch
Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Idea Second Go to Go To Go to
Screen Screen Development Testing Launch
Stages Gates
Activities + Analysis = Deliverables Deliverables + Criteria = Output
Sources: The Stages. Taken from: SG Navigator, The Gates. Taken from: SG Navigator
Product Development – Best Practices
Have and Utilize a Systematic Product Development Process• Process is clearly defined
• Process is visible and documented
• Process is adaptable and scalable
• Process is used
• Process has leadership commitment
Build in the Voice of the Customer• Up front and throughout process
Decision Making and Governance • Criteria defined
• Utilized? Effective? Honored?
Sources: What’s Next: After Stage-Gate, Stage-Gate International,; Best Practices in the Idea-to-Launch Process and Its Governance, Stage-Gate International and Product Development Institute Inc; American Productivity and Quality Center (APQC);
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Product Development – Best Practices
Create & Utilize Effective Cross Functional Teams• Who are the right people for the team?
• How is the team organized?
• Have Defined Roles
• Senior Management buy in
Effective Portfolio Management• Project Management
• Metrics
• Pipeline of products
• Review of project
Sources: What’s Next: After Stage-Gate, Stage-Gate International,; Best Practices in the Idea-to-Launch Process and Its Governance, Stage-Gate International and Product Development Institute Inc; American Productivity and Quality Center (APQC);
Bellin’s Product Development Process OLD WAY
• Cumbersome
• Multiple steps to navigate
• Various decision points
• Inconsistent execution
• Silo thinking and approval
• Hard to track and measure results
• Decisions could be stopped throughout the process
• Little leadership awareness of leadership approved growth projects/products
• Multiple calendars
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Process Flow Old Way
Bellin’s New Product Development Process
• Aligned strategically with high performance healthcare model and financial plan
• Review results, lessons learned
• Continually improve
• Utilize Project Management
• Product/Project Review
• Enabling process, not a burden – get to market
• Full leadership buy in, commitment and ownership
• More intentional and disciplined
• Cross functional teams engaging Subject Matter Experts upfront
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Standardize Process for Product Development 2015
Bellin’s Product Definitions
• New Products – Something made available to a market to fulfill customer need and wants. New business for which we are not currently receiving revenue.
• Product Revision – a new way of doing services that we already have, requires significantly new competencies and significant system or process changes.
• Incremental –an extension of an existing product or service that we have competency in producing today.
• Promotional – a way to communicate knowledge of the product to a target audience, ie. advertising, price changes, packaging changes, sales.
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Standardize Process for Product Development 2015
What Features/
Functions Should
Our Products
Have?
What Should
We Make?
How Will We
Make It?
What Do We Need
to Improve/
Redesign?
Do People Buy Our
Products?
Products and
Services
SYSTEM OF
PRODUCTION
SYSTEM OF
MEASUREMENT
Is It Made Well?
SYSTEM OF
IMPROVEMENT
SALES
MARKETING
- Market/Customer
Knowledge
- Organizational Knowledge
ORGANIZATIONA
L STRUCTURE
ALIGNMENT AND
DEPLOYMENT
ROAD MAP
BRANDS
Strategic Position
SYSTEM OF
LINKED MEASURE
Platform
Knowledge
Action
ResultsOFFERED / CHOSEN
“VOICE OF THE
MARKETPLACE”
External Focus
“VOICE OF THE CUSTOMERS”
External Focus
High Performance Health Care Model
The Business of Health Care
©Knox 2000
-------------------------------------------------------------------------
-------------------------------------------------------------------------
“VOICE OF THE PROCESS”
Internal Focus
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2
3
4
5 6
Focus
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SYSTEM 120-DAY PERFORMANCE PLAN MATRIX(November 2014 - February 2015)
Patient,
Family &
Customer-
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Organizatio
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Engaged
Staff &
Partners
Improved Health
of the Population
Growth &
Prosperity
Breakthrough Initiatives
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Business Development & Growth(Tom A)
Primary:
1. Execute Marinette/Menominee Market Strategy X X X X X X X X X X X
1. Grow Oconto Procedures and Services X X X X X X X X X
1. Transition PPL to integrated Network X X X X
1. Develop State Value Network X X X X X X X
1. Implement Individual Exchange Strategy X X X X X X X
1. Increase Referral Capture X X X X X X X X
1. Implement Mobile Mammography X X X X X X X X X
1. Expand Women’s Health Service Line X X X X X X
1. Recruit Specialty Providers (ENT, Onc, Psych, Phys, Card) X X X X X
1. Product Development – Operationalize Phase 1-3 X X X X X X
1. Recruit and Grow Primary Care Provider Practices X X X X X X X X X
1. Submit Dickinson RFP X X X X X X
Secondary:
13. Deliver National Strategy for Employers X X X X X
13. Explore Urgent Care in Green Bay X X X X X X X X
13. Add Strategic Partners and grow revenue X X X X X X X X X X
13. Grow Invasive Clinical Services X X X X X
13. Develop viable Payer relationships & products X X X X X X X X X
13. Grow Bellin Home Care Equipment Business X X X X
13. Expand Orthopedic Service Line X X X X X X
13. Implement eVisits X X X X X X X X X X
13. Complete Howard Clinic Expansion X X X X X X X
13. Develop Communication platform of Specialty Services to
PCX
XX X
13. Pilot, Refine, and Spread Package Pricing Heart X X X X X X X X
13. Grow Telemedicine Services X X X X X X X X X X X X
13. Expand Behavioral Health Service Line X X X
13. Develop Multidiscipline Clinic X X X X X X
What Have We Learned
• Change Management
• Incorporated what was working well into new process
• Impact to Culture
• Getting people to think BOLDLY and INNOVATIVELY
• Translate difficult concepts into concrete work flows and processes (Just tell me what you want me to do!)
• Involved key stakeholders in the redesign critical
• Holding on to old ways – those who played the old game well, didn’t want to let go
• Leadership approval, support, and ownership of new process
• Realign resources earlier in the process
• Recognition that calendars not aligned & need for change
• CEO & CFO
• Implemented the process mid-year and mid-cycle
• Living in two worlds
• Getting people to think of products vs projects
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Standardize Process for Product Development2016
2015
Next Steps
• Continue to align workplans and calendars of the support departments to the growth projects
• Involve key stakeholders– adding Director of the Revenue Cycle to the Growth Steering
• Educate the System on the changes to the process
• Develop workforce competencies needed to be successful
• Product Development processes are adaptable, scalable and flexible processes
• Monitor, measure, report out results, review processes
Source: What’s Next?: After Stage-Gate, Reference Paper #52, Robert G. Cooper, Stage-Gate International