My past few days have been full of discussion of change and new developments that are showing up in the field—smartphone-based web apps for consumer engagement, new programs to provide social supports to health plan members, national ranking systems for addiction treatment programs, and much more. With The 2019 OPEN MINDS Management Best Practices Institute coming to a close, I think I can sum up the event with this conclusion: the greatest challenge for the executives of most organizations serving complex consumers is coming up with “the next big thing.”
Structural changes in the health and human service value chain will make many services obsolete (or at least in need of a serious remake) over time. The growing shift in stakeholder roles—tech and pharma companies offering services, health plans providing clinical services, health systems managing health benefit plans, and national specialty contracting—is changing the “value chain.” And with it the demand for (and margins of) traditional services. For long-term sustainability, executive teams will need to look ahead and come up with the market positioning and service offerings that are in high demand and have profitability in the emerging market—the “next big thing.”
Some of the market effects of these structural changes are service specific—primary care will be redefined with new functions and delivered by different professionals in new settings. Behavioral health services will be increasingly virtual. Social services will have more funding dependent on consumer impact. Consumerism will drive transparency of price and experience information and growing non-fee for service value-based reimbursement (VBR) models will open the flood gates for tech substitution. Thinking through these changes for undiscovered market opportunities is the stuff of identifying the new market opportunities.
The focus of my closing keynote, The ‘Melting’ Value Chain: Best Practice Management (& Leadership) In An Era Of Change, was answering the question: how to accomplish this? Metrics-based strategy development and strategy implementation with two different areas of focus: First, optimizing the performance of current services lines and, second, developing new or enhanced services for the emerging market. Optimizing current services involves improving performance for customers and knowing when to “retire” any particular service line when it is non-performing in the portfolio. At the same time, organizations need to develop that new sustainable service line for the future.
Developing this strategic road map for future success is a challenge and implementing it even more challenging. Leading an organization that is making the shift from one business model to the next requires an executive team with the ability to manage complexity; leading operational activities and entrepreneurial initiatives at the same time. Managing in this environment requires executives who are comfortable with risk taking and uncertainty, are comfortable with tension, and—to quote Peter Drucker—”are comfortable making sacrifices of parts of the organizations for the broader enterprise.”
For more on the structural disruptions facing the field, check out some of our recent coverage:
- UnitedHealth Group Purchases Equian For $3.2 Billion
- Kaiser Permanente & Unite Us Team To Launch Referral Network For Social Services
- Anthem & Indiana Legal Services Create Partnership To Provide Free Legal Services For Medicaid Consumers
- CVS Health Announces ‘Destination: Health,’ A New Platform Addressing Social Determinants Of Health
- WellCare Creates Partnership With VillageMD To Provide Members With In-Home Primary Care
- Centene Launches OpiEnd Youth Challenge Program
- Otsuka & Click Therapeutics To Develop Digital Therapeutics For Major Depressive Disorder
- Novartis, Pear Move Digital Schizophrenia Treatment Into Phase 2
- Livongo Integrates With Leading Smartwatches; Delivers Personalized Health Insights To People With Chronic Conditions
- Bezos Joins Gates-Backed Alzheimer’s Diagnostics Accelerator With New Focus On Digital Biomarkers
And, to further develop your team’s leadership skills, we’ll be exploring the issue of leadership in a complex market next month at The 2019 OPEN MINDS Executive Leadership Retreat in September. This is our annual executive event focused solely on building the leadership team of the future. The retreat has three elements—briefings and case studies by thoughtleaders, opportunities for executive personal development, and the opportunity for “experiential” leadership learning with our faculty of historians and consultants on the battlefields of the Gettysburg National Military Park.
For more live coverage from Long Beach on The 2019 OPEN MINDS Management Best Practices Institute, check out Twitter @openmindscircle – #OMBestPractices.