Coca-Cola — The Real Thing??
David Chou recently published an article in Forbes Magazine suggesting healthcare organizations follow the example of Coca Cola in how it has transformed over decades to sustain itself as one of the great corporations in America. Great being defined by profit and shareholder return. Though its mission statement - To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference – can be correlated to many hospital mission statements. The article focused on five themes.
Expand the portfolio
Maintain a growth mindset
Orient around consumer preference
Innovation and partnerships
Non-traditional partnerships
These strategic imperatives have been talked about in many forums, articles, books and well written strategic plans. It is a bit of a “Duh” list. However, I do applaud the author for calling attention to these themes. Even though, there are some great success stories (Intermountain Healthcare, Northwell Health) in our industry, there are very few examples of one healthcare enterprise winning in all five. And we must to sustain our relevance and deliver on our missions.
So, the headlines are right on the mark with one major element missing - Workforce. Execution of any strategy without the human capital on the front lines just won’t happen. Today, every strategic plan must address short and long-term gaps in the workforce. This industry relies on so many roles that require significant post baccalaureate education and training. The decades of an inadequate pipeline are bringing harsh seemingly insurmountable consequences to our doorstep.
The examples supporting these headlines is a little weak, but may at least be thought provoking. His best points are around consumer preference and non-traditional partnership. Least relevant may be the growth mindset. How many systems can really expand into Abu Dhabi? How many even want to? There are far more relevant growth strategies across our sector than this. Think about the endless demand in primary care, 30% of which will shift from traditional delivery channels to new competitors currently outside our industry over the next decade. Think about new business models leveraging technology, care coordination wrapped around a value-based relationship with local government or employer groups. What about wellness or radically transformed chronic care delivery? Please somebody, Ignite the Spark here! Now!
What if?
This article could have greater relevance if some of the key environmental factors in healthcare existed in the soft drink industry. For example:
Coca Cola must give free soda to anyone presenting at its doorway with dehydration.
Coca Cola must accept federal payment for all soda provided to those over 65, and that payment will not exceed 80% of the cost. And, must accept payment from each state it serves for those customers consuming coca cola under the age of 65 but at or near the federal poverty level. That payment will not exceed 60% of the cost of the beverage and will be received at least 90 days post sale.
By the way, marketing budgets are not covered by federal and state funded programs. Sorry.
Coca Cola must publish its wholesale contract agreements on the internet for all to see.
I could go on, but I think the point is made. It is very easy to point out the top line strategies for success. However, execution is nuanced based on the unique challenges of the industry. For those of us in the business of delivering healthcare our first focus is our workforce. Leverage partnerships, innovation and emerging technologies that will close this gap in addition to fueling growth and dazzling our customers.
