achieving growth in the health care...

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Achieving Growth in the Health Care Marketplace By: Tom Arndt, Chief Market Development Officer, Bellin Health

Linda Roethle, MS, FACHE, Vice President, Bellin Health

Session Code: C16This presenter has

nothing to disclose

December 9, 2014

1:30 – 2:45 pm

Session Objectives

• Identify best practice research in new product development.

• Develop a systematic and intentional framework for growing the business.

• Streamline the time from product identification through offering the product in the marketplace.

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Agenda

• Overview of Bellin Health

• Imperative for Growth

• Strategic Alignment

• Best Practice Research

• Bellin’s Product Development Process

• What We Have Learned

• Question & Answer

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Packer’s Stadium: Bellin Gate

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Pioneer Results

Comparative (Moody’s)

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2010 2011 2012 2013 2014

Total Revenue Growth Total Revenue Growth Moodys

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Operating and Net Income

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

2010 2011 2012 2013 2014

Operating Income Net Income

Compounded Annual Growth Rate since 2005 – 9.93%

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What Features/

Functions Should

Our Products

Have?

What Should

We Make?

How Will We

Make It?

What Do We Need

to Improve/

Redesign?

Do People Buy Our

Products?

Products and

Services

SYSTEM OF

PRODUCTION

SYSTEM OF

MEASUREMENT

Is It Made Well?

SYSTEM OF

IMPROVEMENT

SALES

MARKETING

- Market/Customer

Knowledge

- Organizational Knowledge

ORGANIZATIONA

L STRUCTURE

ALIGNMENT AND

DEPLOYMENT

ROAD MAP

BRANDS

Strategic Position

SYSTEM OF

LINKED MEASURE

Platform

Knowledge

Action

ResultsOFFERED / CHOSEN

“VOICE OF THE

MARKETPLACE”

External Focus

“VOICE OF THE CUSTOMERS”

External Focus

High Performance Health Care Model

The Business of Health Care

©Knox 2000

-------------------------------------------------------------------------

-------------------------------------------------------------------------

“VOICE OF THE PROCESS”

Internal Focus

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5 6

Focus

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Research in Product Development

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• Make operational excellence in your core business your cornerstone.

� Gives you funds to support new-growth initiatives.

� Core business can help uncover other customer needs that involve using products more effectively

• Treat growth as a discipline to be pursued at all levels throughout the

organization

• Develop many ideas

• Shift resources – new-growth businesses require people and assets that

differ from the core business in some important way

• Organize to suit the needs of the new business as much as the core

business

• Use selective acquisitions and alliances to catalyze growth


• Why are some companies so successful at product development and others not?

• Why do some new products fail commercially and others are successful?

• How do we position ourselves to move through this dynamic time in healthcare?

APQC Study in Dec 2010

• Healthcare Service Industries

• Telecommunication Electronics/Computers

• Software Consumer goods

Sources: New Product Development, Process Benchmarks and Performance Metrics, APQC, Performance Benchmarks, Product Development Institute Inc.; New Product Development: Embracing an Adaptable Process, QPCQ, Dec 2010

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New Product Development Success Rate

Ave Business Top 25% Bottom 25%

Success Rate 53.2% 70.00% 35.0%

Failure Rate 26..5% 10.0% 35.0%

Kill Rate 20.3% 50.0% 30.0%

On Time/On Budget

Projects on time 44.4% 70.0% 20.0%

Projects on Budget 56.5% 81.0% 40.0%

Source: New Product Development, Process Benchmarks and Performance Metrics, APQC, Performance Benchmarks, Product Development Institute Inc.; New Product Development: Embracing an Adaptable Process, QPCQ, Dec 2010


What does it take to consistently produce profitable new products?

• Document lessons learned and use to improve their product processes

• What worked well? What could be improved?

• Identify patterns that could help future projects be successful

• Identify opportunities for efficiencies in the process

• How to improve post-launch efficiency? Learn from it.

• Importance of reviewing the results of each new project

• Did we do the right things? Was the flow right?

• Did we have the right people? Right skills? Team Dynamics

• Adequate Resources?

• Decisions made, decision making process

• How efficient are organizations? Most are “somewhat” efficient.

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Product Development Process

Stage-Gate Product Innovation Process

Build Testing and

Scoping Business Case Development Validation Launch

Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Idea Second Go to Go To Go to

Screen Screen Development Testing Launch

Stages Gates

Activities + Analysis = Deliverables Deliverables + Criteria = Output

Sources: The Stages. Taken from: SG Navigator, The Gates. Taken from: SG Navigator

Product Development – Best Practices

Have and Utilize a Systematic Product Development Process• Process is clearly defined

• Process is visible and documented

• Process is adaptable and scalable

• Process is used

• Process has leadership commitment

Build in the Voice of the Customer• Up front and throughout process

Decision Making and Governance • Criteria defined

• Utilized? Effective? Honored?

Sources: What’s Next: After Stage-Gate, Stage-Gate International,; Best Practices in the Idea-to-Launch Process and Its Governance, Stage-Gate International and Product Development Institute Inc; American Productivity and Quality Center (APQC);

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Product Development – Best Practices

Create & Utilize Effective Cross Functional Teams• Who are the right people for the team?

• How is the team organized?

• Have Defined Roles

• Senior Management buy in

Effective Portfolio Management• Project Management

• Metrics

• Pipeline of products

• Review of project

Sources: What’s Next: After Stage-Gate, Stage-Gate International,; Best Practices in the Idea-to-Launch Process and Its Governance, Stage-Gate International and Product Development Institute Inc; American Productivity and Quality Center (APQC);

Bellin’s Product Development Process OLD WAY

• Cumbersome

• Multiple steps to navigate

• Various decision points

• Inconsistent execution

• Silo thinking and approval

• Hard to track and measure results

• Decisions could be stopped throughout the process

• Little leadership awareness of leadership approved growth projects/products

• Multiple calendars

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Process Flow Old Way

Bellin’s New Product Development Process

• Aligned strategically with high performance healthcare model and financial plan

• Review results, lessons learned

• Continually improve

• Utilize Project Management

• Product/Project Review

• Enabling process, not a burden – get to market

• Full leadership buy in, commitment and ownership

• More intentional and disciplined

• Cross functional teams engaging Subject Matter Experts upfront

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Standardize Process for Product Development 2015

Bellin’s Product Definitions

• New Products – Something made available to a market to fulfill customer need and wants. New business for which we are not currently receiving revenue.

• Product Revision – a new way of doing services that we already have, requires significantly new competencies and significant system or process changes.

• Incremental –an extension of an existing product or service that we have competency in producing today.

• Promotional – a way to communicate knowledge of the product to a target audience, ie. advertising, price changes, packaging changes, sales.

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Standardize Process for Product Development

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30

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2015 Product Portfolio

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What Features/

Functions Should

Our Products

Have?

What Should

We Make?

How Will We

Make It?

What Do We Need

to Improve/

Redesign?

Do People Buy Our

Products?

Products and

Services

SYSTEM OF

PRODUCTION

SYSTEM OF

MEASUREMENT

Is It Made Well?

SYSTEM OF

IMPROVEMENT

SALES

MARKETING

- Market/Customer

Knowledge

- Organizational Knowledge

ORGANIZATIONA

L STRUCTURE

ALIGNMENT AND

DEPLOYMENT

ROAD MAP

BRANDS

Strategic Position

SYSTEM OF

LINKED MEASURE

Platform

Knowledge

Action

ResultsOFFERED / CHOSEN

“VOICE OF THE

MARKETPLACE”

External Focus

“VOICE OF THE CUSTOMERS”

External Focus

High Performance Health Care Model

The Business of Health Care

©Knox 2000

-------------------------------------------------------------------------

-------------------------------------------------------------------------

“VOICE OF THE PROCESS”

Internal Focus

1

2

3

4

5 6

Focus

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SYSTEM 120-DAY PERFORMANCE PLAN MATRIX(November 2014 - February 2015)

Patient,

Family &

Customer-

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Engaged

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Improved Health

of the Population

Growth &

Prosperity

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Business Development & Growth(Tom A)

Primary:

1. Execute Marinette/Menominee Market Strategy X X X X X X X X X X X

1. Grow Oconto Procedures and Services X X X X X X X X X

1. Transition PPL to integrated Network X X X X

1. Develop State Value Network X X X X X X X

1. Implement Individual Exchange Strategy X X X X X X X

1. Increase Referral Capture X X X X X X X X

1. Implement Mobile Mammography X X X X X X X X X

1. Expand Women’s Health Service Line X X X X X X

1. Recruit Specialty Providers (ENT, Onc, Psych, Phys, Card) X X X X X

1. Product Development – Operationalize Phase 1-3 X X X X X X

1. Recruit and Grow Primary Care Provider Practices X X X X X X X X X

1. Submit Dickinson RFP X X X X X X

Secondary:

13. Deliver National Strategy for Employers X X X X X

13. Explore Urgent Care in Green Bay X X X X X X X X

13. Add Strategic Partners and grow revenue X X X X X X X X X X

13. Grow Invasive Clinical Services X X X X X

13. Develop viable Payer relationships & products X X X X X X X X X

13. Grow Bellin Home Care Equipment Business X X X X

13. Expand Orthopedic Service Line X X X X X X

13. Implement eVisits X X X X X X X X X X

13. Complete Howard Clinic Expansion X X X X X X X

13. Develop Communication platform of Specialty Services to

PCX

XX X

13. Pilot, Refine, and Spread Package Pricing Heart X X X X X X X X

13. Grow Telemedicine Services X X X X X X X X X X X X

13. Expand Behavioral Health Service Line X X X

13. Develop Multidiscipline Clinic X X X X X X

What Have We Learned

• Change Management

• Incorporated what was working well into new process

• Impact to Culture

• Getting people to think BOLDLY and INNOVATIVELY

• Translate difficult concepts into concrete work flows and processes (Just tell me what you want me to do!)

• Involved key stakeholders in the redesign critical

• Holding on to old ways – those who played the old game well, didn’t want to let go

• Leadership approval, support, and ownership of new process

• Realign resources earlier in the process

• Recognition that calendars not aligned & need for change

• CEO & CFO

• Implemented the process mid-year and mid-cycle

• Living in two worlds

• Getting people to think of products vs projects

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Standardize Process for Product Development2016

2015

Next Steps

• Continue to align workplans and calendars of the support departments to the growth projects

• Involve key stakeholders– adding Director of the Revenue Cycle to the Growth Steering

• Educate the System on the changes to the process

• Develop workforce competencies needed to be successful

• Product Development processes are adaptable, scalable and flexible processes

• Monitor, measure, report out results, review processes

Source: What’s Next?: After Stage-Gate, Reference Paper #52, Robert G. Cooper, Stage-Gate International

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Questions & Answers

achieving growth in the health care...

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