“Unfit” organizations aren’t likely to be successful with growth. That’s a bold statement but one that I see as a growing problem among specialty provider organizations. Changes in the market and leadership inaction have let the fitness of many organizations atrophy—financially, operationally, and in terms of market positioning. In a market where successful growth strategies are both market-driven and capabilities-driven, organizational fitness is key. It’s hard to grow from a position of weakness.
So which organizations are “fit” and ready for the challenges of growth? These organizations have clear priorities, their investments and management team attention mirror those top priorities, they understand how their services stack up in terms of customer preference and the competition, and the focus of the management team is on improving those metrics. The big issue is that most organizations don’t have the performance data they need to set priorities, create services lines with competitive market positioning, and put forward a winning value proposition for customers.
As our team looks ahead to next week’s 2019 OPEN MINDS Performance Management Institute, we will be talking about the links between performance measurement, strategy, growth, performance management, and sustainability. The right metrics are essential to understanding the distinctive capabilities that your organization has that can fill an “unfilled” gap in the market and continue to remain competitive. And, that’s not enough—managing the performance of your organization to hit the performance you promised is essential for the long-term (see Positioning – And Managing – For Competitive Success). (For more, check out these resources from the OPEN MINDS Circle Library What Does It Take To Outlast The Disruptors?, Make Change Or Be Changed, and Innovation Success In Three Steps.)
This ability to identify unique capabilities—and keep ahead of the competition using data is the critical factor. The organization that is most successful in continually positioning and repositioning its service lines—and delivering on that positioning promise—will be the winner. The key is keeping your portfolio stocked with services that are relevant and competitive. While these are challenges of technology, they are also challenges of executive culture (see Challenges In Changing To A Culture Of Value (Or Making Any Culture Change). For more on defining unique capabilities, check out these resources from the OPEN MINDS Circle Library:
- ‘Productizing’ Services For Competitive Success
- Adaptable Standardization-In Service Of Mission?
- New Service Line Development: The OPEN MINDS Step-By-Step Approach To Developing Innovative Programs
- Consumer Sovereignty: Better Care = Financial Success
- The Enablers Of Competitive Advantage
- The Path To Long-Term Sustainability
- Health Plan Relationship Building Skills Key To VBR Success
For much of my career, provider organization executive teams have talked about performance management, but left the tough issues on the table with the thought that they would get to it at some point in the future. I think that future has arrived.
For more on best practices in the move to pay for value, stay tuned next week for our coverage of The 2019 OPEN MINDS Performance Management Institute through our live social media coverage @openmindscircle under the official hashtag #OMPerformance.