Strategic Planning for Alternate Site Infusion Professionals. David M. Franklin, MSA, Chief Strategy Officer, Ambient Healthcare, Davie, FL

Transcription

1 Strategic Planning for Alternate Site Infusion Professionals David M. Franklin, MSA, Chief Strategy Officer, Ambient Healthcare, Davie, FL

2 CE Credit in Four Easy Steps! 1. Scan your badge as you enter each session. 2. Carry your Evaluation Packet to every session so you can add session evaluation forms to it. 3. Track your hours on the Statement of Session Attendance Form as you go. 4. At your last session, total the hours and sign both pages of your Statement of Session Attendance Form. Keep the PINK copy for your records. Put the YELLOW and WHITE copies in your Evaluation Packet. o Make sure a completed Session Evaluation Form is in your Evaluation Packet for each session you attended. o Miss one? Extras are in a file near Registration. Complete the General Attendance Evaluation Form located in your Evaluation Packet. Fill out the information on the outside of your Evaluation Packet envelope, seal it, and drop it in the box near Registration. Applying for Pharmacy CPE? If you have not yet registered for an NABP e Profile ID, please visit to do so before submitting your packet. o You must enter your NABP e Profile ID in order to receive CE credit this year! 3/26/2013 2

3 Speaker Disclosures David Franklin declares no conflict of interest or financial disclosures. Clinical trials and off label/investigational uses will not be discussed during this presentation. 3/26/2013 3

4 Sections Introduction and core concepts Tools and infrastructure Environmental analysis Planning template Other elements Summary

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6 Strategic Planning Defined: Process of self-examination Charting of a course thought to be wise A tool that provides guidance Defines who you are A method of prioritization

7 Strategic Planning Defined: Ensure that day-to-day decisions conform with long term goals A tangible implement A method of organizing activities A map

8 Structure Analyze Plan Implement

9 Examples of Strategies: The market in which to compete: Service lines offered / not offered Markets to serve / not serve Competitors to compete with / avoid Level of investment Invest to grow Invest to maintain Milk it Prep for divestment

10 Examples of Strategies: Operational strategies: Pricing Distribution Information systems Process flow Competency strategies Focus on doing something different exceptionally well

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12 The Team: Point person Organizational / departmental leaders All required skill sets represented Balance strategic planning needs with productivity needs Division of labor with coordination Outside facilitator

13 Administrative Infrastructure: Clear identification of participants Meeting schedule Minutes Written document accessible by team

14 Data: Removal of subjectivity Trending and benchmarking in place of guessing and assuming Multiple sources Perfection is the enemy of good Clearly identified sources and processes Any change resets trending

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16 Internal Environment: Honest and candid assessment of issues Structure of the organization Work flow processes Deployment of resources Financial analysis

17 Minimal Financial Data: Current ratio Quick ratio Net working capital Total asset turnover Inventory turnover Debt ratio Gross profit margin Net profit margin Return on assets ratio Labor percentage COGS percentage Other expense percentage DSO Paid to sales ratio AR > 120 ratio AR by bucket Bad debt ratio

18 External Analysis: Legislative / Regulatory National State and local Licensing Zoning

19 Competitive Analysis: What business models have been successful? What competencies seem to offer the largest ROI? What is the most significant value add? What market needs are not being met?

20 Competitive Analysis: Who are they? Who is most formidable? Who is less intense but still serious? Can they be grouped by assets, competencies, strategies, or other? Who might enter the market and how can they be discouraged?

21 Competitive Evaluation: What are their strategies? What is their cost structure? What are their strengths and weaknesses? What leverage points do you possess? What are their core competencies?

22 External Analysis: PEST / PESTLE: Political Economic Social Technological Legal Environmental

23 External Analysis: Seeks to answer questions: What will affect growth of the industry? What is the likely effect of these elements on my business? What are the opportunities? What are the threats? How do I stack up against others?

24 SWOT: Strengths / Weaknesses / Opportunities / Threats Internal and external Summarization of key components Warts and all Has to be honest to be effective

25 Core capabilities Tangible Strengths: Plant and equipment Market leading therapies Size Intangible Name recognition Relationships Intellectual capital

26 Weaknesses: Competitors have an advantage Tangible: Old / absent plant and equipment Consolidation Lack of capital Intangible Nobody knows you Limited relationships Limited experience

27 External Opportunities: Environmental conditions that can improve upon your competitive position Exit of a competitor Regulatory change Other

28 Threats: Environmental condition beyond your control Competition Regulation Substitution Demographics Identify those not addressed by current strategy

29 Sources of Data: One of the most difficult elements No single method Former employees Google Suppliers Referral sources Payers

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31 Mission: Why are you in business? Profit Community service Values What markets do you serve? Counties? States? Non defined?

32 Mission: Who are your customers: Patients Referral sources Medical community Payers Governments Accreditors Others

33 Vision: Directional in nature Concise We are committed to Desert island exercise All applicable areas

34 Goals: Goals and Objectives: Broad-based ambitions Cover all applicable areas Objectives: The targeted value of the goals A quantification of the goals

35 Focal Points and CSFs: Focal points: An act of prioritization 3 8 per area Critical Success Factors: What you would fail without Customized by area of the plan Quality / cost / profit / market share / customer service / operations / etc

36 Focal Point CSF Target Goal Objective Revenue Cycle Suitable payer mix Min. 60% commercial Desirable Payer Mix 80% commercial Pharmacy Operations Prescription error rate Max. 0.5% med error rate Improved error rates 0.01% med error rate Customer Satisfaction Survey results Min. 80% satisfied Improved customer satisfaction 95% satisfied Business Development Market Share 35% within 100 mile radius Increased market share 65% within 100 mile radius

37 Strategies: Using the advantages identified to gain the upper hand Exploitation of strengths and opportunities Avoidance of weaknesses and threats Decisions as to where to allocate resources More a set of options than a fixed point Just ideas at this point

38 Tactics: Specific steps, processes, procedures Entering the nutrition business is a strategy Hiring a dietician is a tactic Require resources Multiple tactics may serve a single strategy Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

39 Endgame The SCA: Sustainable competitive advantage Technological innovation Strategic relationship Specific program Marketing Diversification Acquisition Low cost / no frills What s yours?

40 Endgame The SCA: The way you compete Service strategy Positioning strategy Distribution strategy Basis for competition Assets / competencies Where you compete Market strategy Who you compete against Competitor strategy

41 Audit and Adapt: Comparison of stated objectives to actual outcomes Celebrate success Honest revision as necessary Address failure Root causes Structural issues Failure to implement Unforeseen circumstances

42 Common Mistakes: No process Skipping steps Little emphasis on differentiation / SCAs Differing evaluators Incomplete assessments

43 Common Mistakes: Too rigid / lack of flexibility Not linking actions to results of plan Failure to quantify Failure to support Ritualization

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45 Process Summary: Administrative infrastructure Team Schedule Data Documents Analyze Internal External SWOT

46 Plan Process Summary: Mission and vision Goals and objectives Focal points and critical success factors Strategies and tactics Implement Execute Audit / monitor Adapt Dominate!

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