Thursday, February 9, 2012

Pruning The Idea Tree

Every organization is looking at adding new service lines these days – or should be. The market is shifting, reducing demand for some services and increasing demand for others. And, there is the issue of diversification – with organizations trying to decrease their financial dependence on a single payer or single consumer type.

What our team has observed at many organizations is that the approach to adding new services is haphazard at best. There are lots of half-developed ideas – selected for reasons that can't be explained fully. Our advice – use a disciplined process in evaluating and selecting your investments in service line development. This is not an expensive process – but it is a process that demands some rigor in strategy, market analysis, and financial projections.

Where to start? You may say that you start with the new service line ideas, but that is only half true. What we find is most organizations have way more ideas than they have the time or the money to implement them. The "idea tree" in most organizations is very full of fruit. So keep that long list of ideas – from your staff, from your customers, from your research. Then, consult your strategic plan. I'm assuming you have one (but if not, take a look at The OPEN MINDS Guide To Strategic Planning: Best Practices In A Turbulent Market premium members). The strategic plan should be your framework for what types of new service lines fit your strategic vision – population, geography, payer, service type, etc. The strategic plan will provide you with the guidance to eliminate a number of those ideas before you move ahead (see Adding A New Service Line: A Disciplined Planning Process Is Key To Success premium members). They may be good ideas – but not ideas that fit with your organization's go-forward strategy. This is the first step in pruning the idea tree.

Undoubtedly, as the health care market changes, you will need to develop new services or modify your existing ones based on consumer preference, policy changes, competition, etc. But be certain that as you develop these new services, they are the right ones to help your organization to gain the competitive advantage in the market.

To learn more, join me for my presentation, "Designing New Services (& Redesigning Current Services) For A Changing Market: Tools For Engineering Your Market Success" at The 2012 OPEN MINDS Planning & Innovation Institute. And, if you have any questions in the meantime, please email me at openminds@openminds.com.

Sincerely,
John F. Talbot, Ph.D.
Executive Vice President, OPEN MINDS

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For another free resource, see: Deciding On Your Next New Service Line Investment  all members 

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