Let’s be honest, the strategy-setting process in corporate healthcare kind of sucks. Secretly, we all know this but let’s dive into the reasons why. We will also dip our toe into the strategy of private exchanges, and I’ll share a book that I promise is not just another strategy framework book with a cool title
Bad strategies can be bad for a multitude of reasons, but by definition, a bad strategy is one that attempts to accommodate far too many varying demands. As a result of this trying-to-please-everyone and perhaps trying to kill five birds with one stone, few tradeoffs happen and the proper (and sometimes tough) allocation of resources that can really see a strong strategy succeed, plays it safe and keeps it balanced. This. Doesn’t. Work. I’m not saying that strategic planning process is crap, we’ve all got to go through it. But some companies are nailing it, and I’m here to talk about how. Beyond telling you what’s working with these uber-successful strategic companies, I’ll pass off a few tools (and resources) your own company can use to improve those inspirational but actionless strategy meetings. Whether your business’s strategy process is stuck in the mud or flying high on the tailwinds of other industries, this episode will help you #ElevateYourHealthCareThinking. Turn up the volume. Let’s do this.
Research Links & Show Notes:
(0:42) Want to know hear about a bad strategy? A strategy that’s put in play the accommodates to many demands without any tradeoffs.
(1:18) We all want to talk about what’s wrong with strategy and what opportunities we might have, but what about the small details behind good strategies? What about the resource allocation needed to see those opportunities succeed?
(2:26) More often than not, there is a kind of even coding approach that just smooths over the resources across the team, division. This can create a wide and thin view of the allocation of resources at an organization.
(3:31) Strategy today is a lot of teams playing the political gain to maximize resources or to not loose resources. This is really just a mess and results in a company playing it safe. You stay in the middle of the pack, not moving forward or back.
(4:36) Speaking of politics: the press is going wildwith comments from David Cordani, CEO of Cigna and keynote speaker at AHIPa few days ago in Nashville. Cordani suggested we all press pause on the Medicare for all debate – this was a WTF moment. Irresponsible and untimely for this to be thrown out as we head straight into the heart of a democratic primary.
(5:22) In case you haven’t been tuned in (and are curious), I’m an advocate for free markets and capital being invested into companies to benefit everyone.
(8:23) The polls are telling us the #1 priority coming out of the midterm and headed into an election year is healthcare (for blue voters). Kaiser Metrics reported 87%of democratic voters said healthcare has to be talked about in this upcoming primary.
(9:19) Kaiser Metrics survey found a tie for the most important factor voters want politicians focus on: reduce out-of-pockets costs and & reducing premiums and deductibles. Curious about the fifth most important? Improving value.
(10:17) Are we reaching a price tipping point? Is the point coming in 5 years? 10 years? This populism is only growing, it won’t be taking a break anytime soon.
(12:40) Surprise Billing legislationthat is going on right now, the American Hospital Association (AHA) talking to the senators who are trying to pass this bill. AHA is trying to keep government out of medical bill regulation.
(16:24) We have to recognize the inevitabilities in the tipping points of price, at some point, the cost of these services are untenable. When considering setting benchmark prices to some percentage, an entrepreneur will just figure out how to deliver that service more efficiently and effectively.
(17:35) As tough as it is, we have to find a balance between free market principles and common-sense regulation. If we go too far with the free market or too far with regulation, innovation will be stifled.
(18:05) Let’s talk organization strategy meeting: yes, they can stir inspiration but don’t necessarily lead to change, growth, and actionable items.
(19:50) Sometimes the best strategy is knowing when to cut bait on a strategy.
(20:57) We try to bring science, logic, and evidence to it but so much of strategy it is a delicate art form.
(22:32) Are you coming to 4mul8 2019 Atlantato talk product & distribution? We will be giving you a lot of things but we will also be passing off a book called Strategy Beyond the Hockey Stick. These folks are looking at what makes a company exceptional vs. broad average vs. laggard.
(24:35) Strategy Beyond the Hockey Stick took a long hard look at the long-term performance of thousands of global companies. They discovered that over a 10-year period, just 1 in 12 companies manage to jump from the middle tier of corporate performance—where 60% of companies reside, making very little economic profit—to the top tier where 90% of global economic profit is made.
(28:49) Nokia is explored within the book for bringing so many innovations to the cell phone industry (even before Apple and the iPhone) but these big ideas and strategies were shot down. Insider politics and a shitty strategy process took them down.
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