Showing posts with label Business Solutions. Show all posts
Showing posts with label Business Solutions. Show all posts

Tuesday, September 8, 2015

New Blog Header, Updates, Etc.

Hello everyone!

This blog has under gone several header titles as best fits the season of the life cycle to which it resides. I've actually noticed that depending on the type of blog, most blog based websites tend to have a 1-2 year life cycle where things need a little mixing up and changing around.

Well, my blog is no exception. By now, I'm sure you've noticed I've taken a lot of my thoughts and content in a partnership with UpDoc Media, appropriately serving as their Chief Content Officer. As such, I've been using this platform more as a personal, reflective, advisory, mentoring, and expanded outlet for my personal thoughts and philosophies as it pertains to life, academics, career, and business.

It's exciting for me since I had a fairly successful Periscope session (still just getting into it), ran as a Q&A. I'm planning on doing more of this in the future.

What is MOST exciting for me is revitalizing this blog as a place for honest conversations about life. As we continue to forge through the millennial age, we're realizing together that much of what we thought and expected of our futures is unfolding in a much different way. In fact, it is unfold in a fairly dis-congruent fashion to that which we were otherwise told it would.

Now, there are no promises in life. Certainly. However, there just seems to be such a disconnect between the social contract we signed up for and the present state of the social contract to which we are now living in.

So, what can you expect? Well, I'm going to be delving into some areas of concern in our academic system. I'm also going to continue to expand my thoughts on career strategies, the good, the bad, the ugly, and the opportunities for change. I'm going to talk a lot about relationships. THIS is exciting me. I think, as a culture, we're all obsessed with relationships... so it's going to be a lot of fun ;)

Yes, of course, I'll talk business. I ALWAYS talk business. But, what I really want to utilize this outlet for is fostering some honest thoughts and conversations about how things are, how things should be, and how we can get there together.

Many of you have already reached out privately via email, Twitter DMs, and other private channels. Awesome. Though, it seems a hashtag was needed... some were carved out for me... another I made for myself just because... sometimes, you need honest conversations during an open break time where people can just talk, as people.

So, I'll be talking to you, soon!

Take care,
-Ben

PS. Here are some hashtags which I've been mentioned on:
#btwbf (this one I use personally, it stands for Break Time with Ben Fung)
#BizFungShui (primarily in association with UpDoc Media)

Friday, July 3, 2015

2015 New Grad Physical Therapy Job Market Outlook

It's called a "Compensation Package."

Say it with me: C-O-M-P-E-N-S-A-T-I-O-N  P-A-C-K-A-G-E.

It's everything. It's your pay grade/rate, your benefits, your perks (fringe benefits), the mentorship program, the CEU reimbursement, the tuition assistance program, the opportunity, the upward mobility, the brand name association, the exposure... everything. It's the whole kit-and-caboodle when it comes to making a judgment call on accepting, rejecting, or counter-offering a job.

But, what's normal? How do I figure out where my baseline is? Well, today you're in luck! Thanks to a #DPTstudent conversation on Facebook, I'm going to share a mid-2015 baseline for the New Grad Physical Therapy Job Market.

Here is..........!!!

The 2015 New Grad Physical Therapy Job Market Outlook

Ahh... fake out! First, there's a LOT I can speak on this topic. In fact, I could probably give a weekend seminar on this. That said, I come at this topic from the perspective of a strategic consultant as well as a former rehab director. To this, I'll highlight the interesting numbers in the top 3 categories of interest. Then, I'll close out by talking about the 6 dimensions of compensation. Enjoy!

1. The Pay
For every business model, there exists a cost of business and acceptable profit margins which they can operate within to hire employees. Those employees must live within the means of their own cost of living and acceptable work-life-balance. Essentially, employees can not cost a business more than they can pay out, and, employees themselves must be willing to work in the conditions given. Thus yields a healthy economic ecosystem.

For Physical Therapy, there are 4 major segments where pay is severely different for operating reasons. They are:
  • Outpatient
    • New grad PT ranges from $27-35 per hour.
    • New grad PTA ranges from $20-25 per hour.
    • On a regional level, the suburbs pay the best followed by urban then rural.
    • On a principles level, outpatient makes 15-25% less than in SNFs.
    • OP makes the lowest revenue per volume, which means scale is severely important. The more capacity and the more patients a business can process in their supply chain, the more money they will make and the more money they are able to pay you.
  • Acute Care Hospital
    • New grad PT ranges from $30-37 per hour.
    • New grad PTA ranges from $22-27 per hour.
    • The same regional & principle variations exist.
    • As hospitals make a lot of money, it's all about the split for them. Which department gets to keep how much of the pie per patient. This becomes a function of departmental leadership clout as well as the general job market. Most places yield a happy medium because of cost of business vs. cost of living. Eventually, no one wants to / can work at a place which pays too little. This means companies end up contracting out very expensive temp staff. After a while, upper management takes the hint and raises the pay grade.
  • Skilled Nursing, Long Term, & Acute Rehab
    • New grad PT ranges from $38-45 per hour.
    • New grad PTA ranges from $27-33 per hour.
    • Again. the same regional & principle variations exist.
    • Generally, PTs make $10/hr more than PTAs.
    • The wiggle room in negotiation has to do with the CFO's operational budget. They have set a profit margin which they basically promised the owners/shareholders which managers must make. The revenue per labor in SNF is the highest and historically (although this is changing) most stable of all the settings. For this reason, this setting pays the best -- along with the fact that this setting is the least "fun" (perk!) to work in... and more frequently than not, has questionable ethical boundaries. (Wait?! Who said that?!)
  • Home Health
    • This is the most variable in pay.
    • Many companies do not pay by the hour; rather, they pay by the service. In essence, you keep a piece of the pie for the work you do. As such, I'll translate out a full time equivalent which again, is highly variable.
    • Example: For a treatment, a PT can earn $60. For an OASIS start of care, they can earn $180. It's not time dependent but completion of service dependent.
    • New grad PT ranges from $40-50 per hour or ~$100,000 if productivity is met.
    • New grad PTA ranges from $30-40 per hour or ~$80,000 if productivity is met.
2. The Benefits

Health Benefits
Health benefits are typically one of three kinds. A classic HMO, a PPO, or a high deductible PPO with an HRA or FSA account. Typically, working for health systems like a hospital base or medical group based company will yield an HMO. The same types of firms will also offer a PPO which means you pay a lot out of pocket until you reach a magic number.

A lot of companies are going lean and are headed towards the High Deductible Health Plan (HDHP). This is excellent for very healthy individuals with no history (including family) who have a low risk lifestyle. The HRA and FSA accounts also offer some tax benefits but may require more calculation... sometimes this means you end up putting money away you never get back.

Retirement
Most companies offer a 401k while some offer a 403b. Regardless, you don't really get a choice. The retirement plan is the plan and the company has made a contract with their wealth management company to provide options in a very specific way. The key is when these plan kick in and how much of it is matched. Companies that tend to pay less tend to match more; it's not uncommon for companies that pay poorly to match 5-8%. In contrast, firms that pay handsomely match none the first year, 1% the 2nd year, 2% the 3rd year, and finally 3% the 4th year of your loyalty to the company. Worth it? Meh... it's free money, right?

Adjunct Insurance
To me, this isn't really important to the new grad. Honestly, there are better options via life insurance agents. In any case, the same deal occurs here. The plan is the plan; you can't really change it or negotiate for it. For the most part, this is just a way for any given firm to be more competitive compared to the next in hopes of retaining or attracting the best talent. This is also a way for a company to protect itself from too much work comp and/or litigious complications. "Hey, we offered... you got disabled on your own." #ClassyOfThem

CEU Reimbursement & Tuition Programs
Some companies will offer unlimited CEUs while others only give a percentage of a couple hundred to a couple thousand dollars worth until you reach a certain level of seniority. Again, the same idea for retirement funds run here -- the better they pay, the less likely they will pay for your education. On the level, most corporations will give you $1000 as a good baseline. $2000 if they don't pay you all that well. If they run percentages, you get 50% of each bill reimbursed the 1st year of loyalty, 75% the 2nd, and finally 100% of all CEU costs the 3rd and going forward.

BEWARE!
Many companies require you work one or two FULL CALENDAR months before benefits kick in. Be VERY clear about this because you may work on the first Monday of a month. However, because that date is say... March the 2nd... you will not get benefits until MAY!!! So, be crystal clear about when benefits kick in and WHY.

3. The Opportunity 
So, this is where I'm going to talk about balance. Every compensation package has 6 dimensions:
  • Pay
  • Benefits
  • Fringe (aka "Perks)
  • Balance (work-life-balance)
  • Culture
  • And, Opportunity
They are coupled in triplets; Pay, Benefits, Fringe (vs) Balance, Culture, and Opportunity. As such, there is an overall value of compensation any business can give. And, in healthcare, particularly in PT, there is certainly a limit. After all, unless creative billing or strained operations is involved... outpatient PTs all have 8 hrs to bill a max of 32 units, right? So... there exists a maximum revenue per labor unless you start taking advantage of the 8 minute rule (another talk for another time).

As such, the higher the pay, the lower the benefits and fringe. The higher the benefits, the lower the pay and fringe. The same exists for balance, culture, and opportunity. For a new grad, opportunity is very important.

The opportunity for new grad who wish to climb the administrative ladder need to pay attention to culture and balance upon interviewing/hiring in. Poor balance leads to stressed out employees and a sad culture (ie. low moral, back stabbing, grumpy people). This environment leads to lots of turn over, and therefore, the opportunity to move up and get that promotion. HOWEVER, you're not immune after the fact. You'll likely burn out just as quickly as your former boss just did. Nevertheless, it is something of interest in getting that early promotion so you can transfer laterally to a more favorable situation.


So...........! My fingers are tired. I hope that answered some questions for you students who have coursework to answer for. I also hope this helps those of you in the process of looking for a job or on the edge of graduation, taking the boards, etc.

As always, if you have ANY questions... I'm only a Tweet or Email away (too tired to link).


So, until next time, I remain yours in service!
-Ben

If you want to learn more about the hiring, applying, interviewing process... here are some links:

Thursday, June 25, 2015

What's Your Brand Appearance?

Does how you look really matter? It's not a matter of "should it," because the answer is... IT DOES! One's appearance matters because of hardwired consumer biases we have, such as the Halo Effect. Effective brand management requires that marketers labor to continually press the congruence between their brand appearance and their brand image.

And so, today we're talking...!

What's Your Brand Appearance?

First, let's define our terms.
  • Brand Appearance is the physical look, and in the case of e-commerce, the experience of browsing, researching, comparing, purchasing, and re-experiencing a brand. The scope of brand appearance reaches as far as a business logo to a brick-and-mortar ambiance, to the physical look of the staff. It serves as the first impression gauge to which all other impressions are then measured.
  • Brand Image is the conceptual construct to which your consumer base imagines your brand to be. When someone asks you if you want a cup of coffee, you think... Starbucks. If someone wants a recommendation on workout gear, you may say... Under Armor. If you hear the word "Costco," you may think... cheap/buying-in-bulk. Rolex? Luxury. In all cases, whatever image flows into the mind's eye of the consumer, THAT is your brand image.

The connection is then clear. Your brand appearance is the first stop shop of developing your brand image, and ultimately, the creation and completion of your brand promise.


Therefore, it's crucial to consider these three brand experience tenets:
  1. Aesthetics. Be it a physical location, website, app, or portal, your appearance must match your brand image's brand promise. A minimalist, time saving service/product should have a similar look throughout the continuum of brick-and-mortar into the website structure. A service brand which trumps a 5-star experience should project an image of happiness and satisfaction beyond measure. Your look is part of the brand experience that you give your customers; therefore, it fully carries over to the conversion of consumer purchase. Perhaps more importantly, it translates to customer retention. Loyalty, is many times, far more important.
  2. Voice. In many similarities to a dating experience, looks are many times the first impression a brand will give to the prospective customer. Yet, once we get past this point and interest is gathered, it is the voice and tone throughout the first date that seals the deal for date number two. Companies express their voice via blogs, website content, social media posts, ads, labels, etc. Just about anything with printed image or published multimedia serves as a brand's vocal expression. Therefore, a brand's voice must also match the brand's appearance and identity to maximize the congruence of customer expectations of the brand promise. Welcome based brands should have a voice which is conversational, minimizes jargon, and encourages community. Solution based brands should offer small teases and pearls of wisdom as it pertains to actionables. Experience based brands should assume a tonal posture which gives customers a platform to share their own wonderful experiences as a strategy of perpetuating brand equity elevation.
  3. Flow. Keeping with the dating metaphor, the flow of the first date is crucial to landing the second date (customer loyalty). If the date goes bad with awkward silences and the like, it ultimately sullies the experience itself. The same goes for a company's brand experience as it relates to the initial appearance of the brand. If the first impression of the brand appearance is that of cost savings, what it is really communicating to the consumer is that this brand will save you time. Therefore, the experience must be polished, streamlined, and exceptionally efficient. Wait times will betray the brand promise. Similarly, if the first impression from a brand appearance is that of catered customization, a lack of fleshed out options and a poor browsing vehicle will also betray the promise and brand experience itself. 

So, I ask you: What's Your Brand Appearance?
  • Is it in line with your brand identity?
  • Does it create synergies with your brand promise?
  • And, is it congruent with your brand image?
If your answer to these three questions were, "YES!" Congratulations! You have created a wonderful threshold to nail the brand experience from the get go.


Announcements & Mentions!
  1. If you haven't heard already, it's official! I will be joining UpDoc Media with several heavy hitters including that of Dr. Gene Shirokobrod, Dr. Erson Religioso, and more... so stay tuned! As a teaser: my focus will be on a section called "Business Fung Shui: Doing Business The Fung Way." To hear more about it, go to the Therapy Insiders' Podcast HERE. Just remember, at UpDoc Media, you will find the "Content you NEED to know, delivered with clinical precision."
  2. I'm continuing my vlog episodes in spurts given kiddo management ;) And, as you've noticed, it's more about having fun. Still, if you have anything you want covered, just let me know via email or tweet me @DrBenFung.
  3. One final mention, I want to thank FreshBooks for the inspiration for this post on brand appearance. FreshBooks specializes in cloud accounting and is a great resource in keeping your brand experience fluid, seamless, and consistent. After all, who wants to have a great brand experience only to get tied up and fumble at the end when invoicing and accounting is concerned? Save time and check out FreshBooks. After all, time is money!

ALLLLLLRIGHT! That's all folks. As always, if there is anything you want covered or talked about, please reach out. I'm only an email or a tweet away!

Take Care!
-Ben

Monday, June 15, 2015

Higher Education: Lowering Costs & Improving Compensation

It's an age old problem: You must spend money to make money. In this case, it is spending money on education to make money after graduation.

The above conversation on Twitter lead to some immediate thoughts and then some pensive action. Given, I'm not a formal educator. I'm not a professor. I'm not a credentialed teacher. However, I do teach... a lot. I do so through this blog (and others), my VLOG, as a consultant, as a clinician, as a mentor, and certainly, I have had formal training in the educational process.

All that said, the solutions I recommend come from a perspective of business. They do not fully nor remotely take into consideration the litany of regulations required for academic accreditation nor anything else in the spirit of the like.

Lowering Costs & Improving Compensation

First, I think we need to be honest with ourselves regarding what higher education is, has been, and should become. Education was the original one-up in the working world, an experience where students could gather true life and career skills to become more valuable in the workplace for hire. However, as schooling evolved, the experience became far more theoretical and academic rather than applicable and practical. Moreover, there became this lattice work of degrees to which students need to climb in order to get to the next higher rung for hopefully better compensation in the workplace.

Traditional frameworks of education have always been in the classroom setting. A teacher with the knowledge would dispense their life's work (not always in books), understanding, and wisdom in exchange for money. That cost would hopefully translate into a valuable combination of a degree (piece of paper) and real life skill sets to which an employer would be willing to hire for better rate of compensation -- or -- that the person could go out and earn money for themselves as their own business person (entrepreneur).

So where are we now? Well... if we're truly honest with ourselves. Higher education has certain ironies that are perpetuating unnecessary costs.
  • The Classroom: Why not switch to mobile teaching? Why not switch to virtual classrooms? The overall costs saved for all the parties involved here are tremendous when done correctly. Given, most online programs actually cost a pretty penny. However, it is done so in the face of the marketplace -- the value exchange is the convenience of doing things online.
  • The Redundancies: I find it quite ironic that each higher education program actually creates for itself redundancies in prerequisites through undergraduate studies. In many international systems of education, one doesn't have to take undergraduate courses then take the same courses in graduate school. It is all streamlined. If you got into medical school, you did so practically straight out of high school. I think it'd be a lot more affordable if schools started to allow for a la carte style prerequisites (inclusive of the undergraduate degree itself) that should a student realize they wish to pursue graduate studies, they could streamline in rather than double their efforts. An example for myself, I've taken statistics 4 times now!
  • The Theoreticals: Its also saddening to me that higher education is becoming increasingly theoretical. Of course, this is all done under the name of "foundations" and "general education." Yet, when I showed my chemistry course work to an internationally trained pharmacist years ago, her response was "that isn't chemistry, that's theory!" Expanding on her point, she challenged any student taking undergraduate or even graduate chemistry studies to create for themselves a common OTC drug. They couldn't.
So! Decrease cost by become more mobile, more virtual, accepting prerequisites and using the internal testing process as a measure of if a student is worth it or not. After all, if performance is ultimately the judge, why not let it reign supreme? If a student is doing well, OBVIOUSLY, their credits are good as were their course work. However, if they are doing poorly, I don't care if they got their degree from Harvard with a 4.0. They are STILL failing. Besides, the acceptance in larger volumes in early prerequisites (bar the hands on stuff) allows for a decrease in cost due to scale. It also allows for the expense to students to be lowered as well. It also allows for the right performers rather than the right prerequisites to dictate who wins and who loses.

I would offer this in all cases: Decreasing the cost of higher education is hard. It also, is perhaps, less important than improving compensation for our new graduates.

How To Improve Compensation?

Well, to answer that... it's VLOG time!

Saturday, May 23, 2015

The MBA: Now that it's done...

Just in case you're new to this blog, for the last three years, I've dedicated my life to juggling family, finances, and finishing a Master's of Business Administration with a concentration in Marketing at the University of Michigan, Dearborn campus. The program was 100% online with strong focal points in international business, supply chain operations, digital business, marketing and communications, and remote collaborative models. After all, it was online, right? Made sense; so I went for it!

Well, during this time I changed many jobs, several health insurances, bit my nails at my dwindling bank account, had our baby boy... but, most importantly, I had the support of my endearing, adoring, and perfectly awesome wife. Add that, with the support of family and friends (you included!), I finally graduated with honors this past Sunday, April 26th, 2015.


But, how did I come to this? Who get's a DPT and turns around to head in the direction of business? What were my motivations? What were my take away experiences? And, what are my goals?

PS. I've got a few questions on why my face was all reddish/beat-up, especially that mark on my right eye. "That's normal! LOL...". No. Actually, that was from a Brazilian Jiu-Jitsu training session earlier in the day. =P

The MBA: Now that it's done...


LOL! So... I (kinda) lied, in that I decided to take out the script. It was just easier to do it this way.

To sum it up, I learned anything from the MBA, I learned that knowledge isn't precisely equal to power. And, while the MBA taught me much knowledge; more interestingly it taught me HOW TO USE IT. That was the greatest challenge in the program was when marketing and strategy professors jumped in on threads to discuss with us, not only the finer details, but some of the out-of-the-box applications one could derive -- truly mind blowing stuff.

I learned a lot of skill sets surrounding numbers, business models, optimization frameworks, and strategic planning... but, all in all, I learned also that the practice of business requires a steady , organized, and intentional discipline in continually becoming better than you were yesterday.

So, what am I going to do now? Well, despite how fun it is serving as a consultant, it's a tough living getting paid case by case -- especially as a single practitioner versus an established firm. You know the saying, "feast or famine." And, when it comes to supporting a family, it can be tough doing it this way. My wife and son deserve more. So, I've been perusing opportunities as well as sifting through the very regular head hunting calls. It's actually crazy how much more frequently I've been head hunted since posting my MBA credential.

Well... I think that's it! Thanks for watching and for sharing in my thoughts and life. I'm looking forward to your feedback as I'm organically figure out this world of Vlogging.

By popular demand, me... and, me.
I'm Ben Fung. And, until next time, I remain yours in service. Take care!

Monday, May 18, 2015

Healthcare, the Mechanic's Dilemma, and the Tragedy of the Commons

Hi everyone! Welcome to my first combined blog and vlog episode. In this, and the next four vlog episodes, we'll be sharing some time together where sadly, I'll be wearing the exact same shirt since I recorded as many thoughts as I could during the time of my son's nap. He'll be joining us in Episode 4. It'll be fun ;)

In any case, thank you all in advance for the support in starting this video blog add on. I've decided to keep things casual. I, personally, used #casversation (casual conversation) in a happenstance since I don't plan on editing anything really. To which, I'm working on a hashtag. Brooke McIntosh already started using the #drbenfung hashtag... ugh, LOL! It's just weird for your name to become a hashtag (if that's what the people want, I'm all for it). But.... yeah. If you can come up with a good hashtag for my vlog so I can answer questions, address concerns, talk about the stuff you want to hear about... just let me know!

So, without further ado!

Healthcare, the Mechanics Dilemma, and the Tragedy of the Commons



  • The Mechanic's Dilemma occurs when a mechanic is paid by the service and not by the long term results of how well your car runs. As such, a mechanic tends to worry about doing too good of a job, that business will suffer in the short run.
  • This relates to healthcare as most providers are paid by each service but NOT by the long term health results of their patients.
  • The Tragedy of the Commons is a popular allegory taught in business school and environmental studies to cover the disastrous effects on common resources when people don't work together; without a cooperative force, the entire land is decimated with all natural resources depleted.
  • The Solution:  Judge and pay healthcare providers by the long term results of their patient populations. Forge a unity between provider, patient, and payers such that the interest and greatest value of generation is done so considering the greatest long term value in concert in promoting sustainability.

Thursday, April 30, 2015

Upcoming Webinar: "Advanced Branding Concepts"

Hi everyone!

I'm very excited to share with you that in less than two weeks, on Wednesday May 13th, 2015, I'll be giving a webinar through the Private Practice Section of the American Physical Therapy Association.

You can register for this webinar linked below, titled:


There are going to be some very exciting topics starting with some foundational marketing and branding principles, extending to management levers, and perhaps most excitingly, I'll be sharing with you several marketing metrics to measure the financial returns on your branding initiatives.

Oh, and there's that added bonus of our time together counting as CEUs.

See you there!
-Ben

Thursday, April 23, 2015

The Success Dilemma In Healthcare (Part 2)

Continued from The Success Dilemma In Healthcare (Part 1), this post offers solutions to the situation analysis made available in Part 1. Just in case you missed it, follow the link above. Otherwise, here's a quick refresher:
  1. Being honest with ourselves, "healthcare" as we know it has become a monster of our own doing.
  2. The use of care extenders is nothing novel; at the base of it, this is just a "strategy" of cheaper labor. You get for what you pay for; quality always suffers when downsizing and substituting.
  3. The gatekeeper model has failed. WE have failed. Consumers seek value; not information or rationing of products and services.
  4. Unity is paramount to success in healthcare.
  5. Value Based Healthcare is the solution to breaking out of the Success Dilemma.
The Success Dilemma In Healthcare (Part 2)

3(b). What's my solution?

I propose that Value Based Healthcare requires two things before it can truly come to fruition.
  1. As healthcare as an industry can no longer sustain fee-for-service reimbursement and hourly-based pay, we need to restructure the financial workings and supply chain effects so that VALUE is the currency at hand. To do this, we will very likely need to see a relative blunting of compensation for the continuum of healthcare providers based on contributed value.
  2. Physicians can no longer serve as arbiter and absolute authority of the care team. Instead, the CONSUMER must take this role; responsible for their own health, both personally (as it is, of course their health), financially (as a consumer), and systemically (as a return customer). Content experts will take point of care for each case while an entire network of providers provide integral care throughout the life span of the patient.
Proposition #1 will probably cause the most upheaval if not outright angst against the very idea. But, just bear with me. We are discussing a re-evaluation of how we use our resources and how we can be more responsible about it. Again, I refer to the prior mention: Is it realistically worth ANYONE's time for a physician to sit down in person and educate a patient about how an antibiotic won't cure a flu when other processes can be laid in place for the same qualitative effect with better quantitative measures?

Does it sound better or worse that the physician will bill a $100-200 dollars for that 4 minute visit?

It sounds awful! So, instead of fee-for-service paradigm, I would propose and reasonable surmise that value based compensation will cause a blunting effect since those 4 minutes are not likely very valuable. The following is a table and graphs of the value based blunting effect and is only a theoretical estimate based on financials that healthcare can become sustainable in the long run (beyond the bickering of extenders and best practice).




Why do I even DARE to suggest this? Aren't I afraid the AMA and other healthcare godfathers will come after me? Nope... Because, the recent literature in health sciences have shown us that many of the interventions we've touted aren't actually causing the effect we had hoped. Bluntly put, there are many unnecessary surgeries, interventions, drug prescriptions and the like which are truly affecting the broad spectrum of population based health outcomes. And, guess who is most vocal about this? PHYSICIANS! The ones who became medical doctors because it was a calling, not an earning. They are thought leading, sacrificing their own pocketbooks for the betterment of us all -- and, kudos to them!

But, back on the main issue at hand, consumers don't value visits. They value timely access, effective intervention, and long lasting outcomes. They value the CNA when no one else can help them clean themselves in the hospital. They value the PT when no one else will listen about their chronic pain. They value the social worker when they've lost all hope on how to pay for their bills. THAT is what the healthcare consumer values.

As such, we need the professionals who are the content experts to be directly accessible to the consumers such that they don't go through some gatekeeper, wait in line and a funnel system which only serves as temporal-crowd-control-barriers to their good health. Moreover, so much resource in time, repeat visits, repeat tests, and "failed conservative care" are used to "justify" "medical necessity" of big name drugs, surgeries, equipment, etc. that would quite likely never have been wasted would be averted if the content expert was directly consulted in the first place.

This proposal means that the healthcare supply chain needs itself to change; it can no longer be linear. It must be agile and multidimensional; it must be a well tuned, collaborative, data focused, tech driven, consumer oriented cooperative that ALL internal stakeholders value consumer outcomes above their own billed hours. Under a value based system, fee-for-service disappears, and therefore, much of the conflict of interest of a "follow up visit" or the "mechanic's dilemma" disappears. It also means the initial blunting is just that, initial.

This is just a mock-up of what could be; those who contribute more value get paid more for their value. Those that don't... don't. The system would have to iteratively re-evaluate what is and isn't valuable, and, how much value it actually is worth -- the system, driven by the healthcare consumer.

Imagine that, get paid for the worth of what you do.

This proposal also means academic institutions and professional organizations will need to also get honest with themselves as well; what is the real value (or cost to student) of education, and therefore, what is the best mode of said education? Questions a little beyond my scope of expertise at the moment.

This value based system will have a blunting effect carrying over as a value based compensation for healthcare providers, from the CNA all the way "up to" the neuro surgeon. After all, it is no long service people want, it is VALUE.

Now, I made all this reference about CSR and social responsibility as a whole. Therefore, let me run this through some CSR frameworks and an ethical screen to demonstrate that it fits the mold, and therefore, is a recommendation worthy to be considered as a prototype solution.


3(c). CSR and Socially Responsible Healthcare

Going beyond direct access and into the forays of a truly collaborative community of healthcare providers who are paid by value added versus service rendered, this is my CSR analysis. It also serves to explain Proposition #2 in the section 3(b) above.

Carroll's 4 part definition of being CSR is this:
  • Be economically/financially responsible (create value, earn money).
  • Be legal (obey the laws, play within the rules).
  • Be ethical (be moral, act socially respectable & responsible).
  • Be a good corporate citizen (philanthropy, paying it forward, giving back).
Considering this, AND, the image below depicting prevalence of health concerns (a BIG shoutout to Jerry, Sturdy, and the whole team at SF Physical Therapy):

I hope we can agree that a value based, collaborative system with direct channels to content experts is FAR superior to a gatekeeper and justification mechanism. Instead, if ALL providers were empowered by society (laws and all) to practice at the top of their credentials, so much would be solved in this regard. I have a physician/medical director to thank for this part of this idea from way back when (but, he has yet given me okay to name him publically. No worries, his thoughts have already been recognized at official ranks of national policy concerns and will be published soon and therefore I respect his privacy) -- nevertheless, there has been a name given this functional model to which I credit him once he feels ready.

This solution is not leader based; it is network based. A network of healthcare providers lead by mutual interests of the consumer's best health. It has nothing to do with who gets what piece of the pie. It has nothing to do with who is billing for what. It has to do with who is contributing, and, to what value is that contribution represents in the lives of our consumers.

Testing for social responsibility (pass/no pass):
  • Be economically/financially responsible: Value based, agile network model will allow for consumers to lead with their market demand and their dollars for an entire collaboration of healthcare providers to optimize resource use per outcome. Pass.
  • Be legal: Instead of finding loopholes for extenders, billing creatively and what not, this agile model will already connect a direct line for a basic health concerns to NP/PA/PT, etc. In cases such as an emergent concern, it goes directly to an urgent care/emergency physician. For musculoskeletal concerns, a physical therapist. Therefore, best candidate within the network of providers to best address the concern is operationally (and legally) highlighted as the case lead in a specific circumstance of patient concern. Pass.
  • Be ethical (be moral, act socially respectable & responsible). This value based, agile network model also provides care accessible in an on demand/ASAP basis. This is excellent because society wants their health concerns addressed NOW. Not after a 6 week health scare. Not after going through several hoops of failed conservative measures. They want their concerns to be treated as such; CONCERNS! Pass.
  • Be a good corporate citizen (philanthropy, paying it forward, giving back). While the value based, agile network model may not directly contribute funds back to society, what it will do is set up society to adopt a culture of health. This is something Western culture has desperately struggled against. Pursuit of best health seems to be an arduous task. This model will allow for PTs, OTs, RNs, dieticians.nutritionists, social works, counselors and like-minded professionals to keep consumers aware, accountable, and active in their own health. Pass.
Since the conditions of social responsibility are sufficed, let's make sure a micro-version of an Ethics Screen is also passed for extra measure. By the way, I challenge you to try fitting any one of our current models (or suggested models) through the Ethics Screen (via Carroll). It will likely fail.

An Ethics Screen
  • Conventional Approach
    • Is this the best representation of healthcare as an organization of sorts?
      • Conventional Model: Fails. Why back our consumers up and make them assume a holding pattern in the supply chain?
      • Agile Model: There is no holding pattern in this model and the supply chain is networked so that consumers are served as directly as possible. PASS.
    • Is this the best representation of societal concerns?
      • Conventional Model: With all the political and social upheaval on affordable healthcare and what not, I'd say this is a definite fail. Things are not working at present (circa 2015).
      • Agile Model: Society is familiar with agile access to products and services. Look at Amazon, Google, Ebay, etc. People KNOW where to get the answers. They go there directly. Healthcare has been trying to safeguard its secrets; it's infantile since all of our "secrets" are already out there. Consumers that don't know who they need are victims of our selfishness. Consumers who know who they need are frustrated by the conventional model. Agile network access to healthcare = PASS.
  • Principles Approach (Just to save blog space and you're reading time, I'll hold off on this section to compare and such... all to say: Yes, the Value Based, Agile Network model passes).
    • Does this model have utilitarian benefits?
    • Does this model have virtue?
    • Is this model caring?
    • Is this model following the Golden Rule?
  • Ethics Tests Approach
    • Does this model suffice Common Sense?
      • Duh! This model is practically the model for every other industry. This is a Pass.
    • Is this model a representation of "One's Best Self?"
      • I think the Agile Model is definitely a representation of healthcare's best self; having content experts directly connected to patient concerns while the network of providers assume consultative and collaborative roles to the lead of the content expert is a GREAT way of expressing our best self. Musculoskeletal concern? Why not a physical therapist take lead, internist & pharmacists consult regarding any medication concerns, have pain psychology and social work hover as support? I can't give a reason, why not! Pass.
    • Does this model pass the "Gag Test?"
      • To this, I'll just say that many of the "extender" conversations I've heard does NOT pass the Gag Test. If it makes you gag even a little, it's a fail.

WRAPPING THIS MONSTROUS BLOG POST UP!

In my humble opinion, healthcare is at a crossroads where: We can all win; and, we can all win together. Or... we can all lose, one by one until it's all tragically and agonizingly gone.

We caused this problem together. Times got tough, so we billed more (creatively), downsized, used cheaper labor, etc. We found ways to make people wait, or stay away, to our benefit. Or, we got them to come back regularly, to our benefit. We created our own bottlenecks, gatekeepers, and circular referral processes. Payers started noticing what we were doing, so they kept decreasing what they were willing to pay because obviously we were trying to increase what we were going to fairly get.

Around and around this went until we come to now: a breaking point.

The conventional model as we know it has failed. We need to STOP redesigning the horse and buggy and we need to start crafting the horseless carriage.

I've covered organizational, cultural, professional, financial, and societal perspectives on this problem... this Success Dilemma in Healthcare.

I humbly present my recommendation as proposed, for healthcare to adopt a Value Based Agile Network model. This keeps people healthy and directly connects them to the expert of best position when a concern comes up, all the while being supported by the entire community of healthcare professionals in a collaborative network.

It capitalizes on what our society is doing best, right now: TECHNOLOGY.

And, it returns healthcare back to the core of it's identity: HUMANITY.

This model acknowledges that information is everywhere... the rationing, distribution, and social monopolization of health information/services is no longer seen as fair nor acceptable. Therefore, this model provides healthcare in a fashion which society deems responsible.

The appropriately lower margins of costs driven by "value based provider compensation" makes the burden of healthcare more evenly dispersed across the continuum providers and the consumers. Moreover, it is sustainable.

Rather than an interventive, reactive pattern to which so often, things come up typically too little, too late (like running around with a garden hose, hoping it will reach all the hotspots of a fire)... the Agile Network model serves the consumer on both an on demand basis as well as via an integral approach, taking many snapshots of a patient's health over small bits of time to assure there are no alarming trends towards disease, dysfunction, or disability.

The Value Based Network Model has the greatest scope of reach with the highest levels of credenced practice for all providers in the network. Moreover, it directly connects consumers for early intervention, serves as a preventive and proactive measure, and is highly educative to its consumers such that consumers benefit through the lifespan of their health needs versus a dissociated event-by-event basis.

Most importantly, the Value Based Network Model breaks out of the Success Dilemma. Instead of beating the same horse to move the same buggy, we finally broach the subject of designing and implementing a horseless carriage.

Ironically enough, Henry Ford did not invent the automobile, neither did he come up with the idea of an assembly line; he made cars accessible and affordable for consumers. That is spirit of success behind the horseless carriage.

My answer to the Success Dilemma in Healthcare?

Let us unify and disrupt ourselves; together, forge a better, stronger, and sustainable future to turn this social burden into a societal value.

The Success Dilemma In Healthcare (Part 1)

There has been a LOT of clamoring in social media about licensed healthcare providers and their licensed and/or unlicensed care extenders; believe you me, it's not just the physical therapy world that has been talking about this. Care extension has been at the center of a rather heated, uncomfortable, and disuniting talk for MANY healthcare circles including that of physicians, PAs, NPs, RNs, LVNs, CNAs, rad techs, diet techs, nutritionists..... need I go on?

So, after reviewing the true spirit of the discussions, debates, yellings, and social media japs as of late, I've come across this post (which has been in sitting in my blog queue for some time) and realized.... THIS is the center of our problem.

PS. Yeah... this may be a tiny bit of a rant; but I do offer real solutions with plenty of background.

PPS. I've split this post up into Parts 1 & 2. Part 1 as the situation analysis & Part 2 as the solution. Enjoy!

The Success Dilemma In Healthcare

In once sentence, here is our problem: "We're still trying to make a better horse and buggy when we should actually be working on a horseless carriage."

A reference to the oft quoted to Henry Ford, though perhaps not so accurately attributed in this case.

I feel as an industry, and certainly an economic construct, healthcare as we know it has topped out. It has been spinning its wheels in its own Success Dilemma; the vicious repetition of what worked in the past in hopes it continues to work for the future. This particular dilemma is not unique to any one industry. It happened to the horse and buggy when replaced with the horseless carriage. It happened to radios when they went from tube to transistors. It happened to Blockbuster when it got paved over by digital streaming, NetFlix, and the like. It happened and will continue to happen when sticking to whatever once made success, ultimately creates the rigidity that causes its failure.

As for healthcare, let's all be honest for just one moment.

Just even for a moment...

EVERYONE is talking about care extenders. And, why? It isn't for the greater good. It isn't for better efficiency or even the brainstorming of "innovative" care models.

Because, again, we're being honest right now, right? This talk has been around since commerce has been around: "If someone can do something for cheaper..."

I'll come right out & say it even if no one else will: IT'S ABOUT THE MONEY!

Extenders are cheaper by the hour than for whomever's care they extend; therefore, by being less costly upon a business based on human labor and time, it makes the margins better to substitute as such. Yet, We've TRIED this already. What has happened? Healthcare is STILL way too expensive and beyond sustainable for any local, regional, or national economy. And, it is unsustainable for all areas of practice.

The problem is SYSTEMIC. And guess what? Our consumers are absolutely sick (ha ha) of our internal bickerings -- they want applicable solutions TO THEM, not you clinic, business, firm, or organization.

Yet still, what have we all been yammering about? Finding new ways, crafting new laws, enabling new policies, and trying to sway professional opinions amongst our colleagues in such a way that doing things "differently" in the name of cost savings or what have you is then a good thing. Now, there are times when it is certainly necessary. When the automatic blood pressure cuff came out, did you really need a physician or nurse to do duplicate this manually as a health screening? NO! This  and many more types of care elements in this vein exists throughout the continuum of healthcare.

However, this isn't where our problem is. This, again, is a Success Dilemma. We're trying to do the same thing over and over again (definition of insanity); because it has once worked, it has been working, and we can only expect it to work again.

The problem is, everyone is doing it. Everywhere, in health systems, healthcare companies, private practice, for profit multi-center firms... everyone is focusing on better margins. As margins have been falling with lower earnings (due to various factors, including declining reimbursement rates), dismal growth is being reported; that's a bad thing when considering the shareholders. Since firms don't want investors to start dumping their shares, the knee jerk reaction for any company when costs are squashing margins comes to play. Reimbursements went down, so what did we do?

We billed more and paid our people less. When that didn't work, we downsized. When that didn't work, we started using cheaper labor that could hopefully substitute for quantity and quality. We hoped all of our management decision wouldn't affect quality, or, that no one would notice. We hoped that as our little management tricks served to inflate our earnings, improve margins, and hopefully restore growth, that quality care would not suffer. But, it didn't work and it doesn't work. Quality ALWAYS suffers.

And, this is where we fail... this is where the Success Dilemma destroys us. So, what's the answer? Well, it's nothing organic nor is it new. Nope. It's absolutely intentional. When success fails, disruption occurs.

Industry disruptions have historically happened when characteristics of products (or services) offer inherently novel combinations of traits which allow people to go about their day in a way never done before. I need to stress here that it isn't about performance features; making something fast faster isn't disruptive per se -- this just makes all the other competitor shift their understanding of the status quo (ie. "Henry Ford's" faster horse + faster buggy vs. horseless carriage).

Disruptive innovation creates entirely new markets because of the RESULTS of their products; entirely new ways of thinking; entirely new lifestyles; and entirely new sets of human behaviors.

If what you're trying to do is same thing but faster and/or more efficiently, it isn't anything innovative at all. It certainly isn't "different." If you go down this road long enough, you'll find the same "solution" humanity has always found when things can't go any faster.... you take SHORTCUTS.


So, what's my recommendation, you ask?

1. First, I suggest we take a look at what healthcare was and has become. During its inception, healthcare was really the practice of healing arts when it came to the human experience. Be it physician or surgeon (yes, they were considered different in a time before), sage, shaman, healer, priest, witch, whatever... the human experience looked to experts for their knowledge as well as their information and understanding of the human body. As science began to take hold for the human experience, societies started to notice certain reliabilities and consistencies and gravitated to what was termed as the practice of "medicine."

Nevertheless, the skill sets involved all circulated around one thing: Information. As various perspectives on the human experience and health evolved, healthcare eventually became a business model with many disciplines to create a care team, typically headed up by a chief physician and governed by an administrator.

As costs started to present themselves insurmountable, we tried different things. A gatekeeper model, a maintenance model, preferred provider, wellness... you name it. The problem is, the whole time we were still rationing and distributing knowledge in the form of access to care, prescription of pharmaceuticals, and scheduling of procedures. We failed addressed the one thing that could help us.

Value.

Since information is practically free now, it is no longer valuable as it stands alone. And, while certainly, the information isn't always accurate as framed on any given website due to generalization or what not, consumers don't care. They already have their information, what they are now seeking is value. As such, my first recommendation is that we get honest with ourselves, our consumers, and all of our stakeholders.

Healthcare has spun out of control in so far that it is no longer a viable business model in and of itself. And trust me, that is HARD for me to say. I spent a lot of time, blood, sweat, tears, and money getting my degrees and training to be licensed to do what I do. I pay good money to maintain my license to have the privilege to provide care for others.

Still, it isn't enough. Honesty declares that the monster we've helped create by ALL the current practices we have participated in... has failed.

We, have failed.


2. Arriving here, my second recommendation becomes a little more obvious. Healthcare is a social burden. As such, solutions must be forged together. All this talk about extenders, cost savings, and blah blah blah... it only divides us. It never unites us.

Unity is what we need. Unity within the professions; unity amongst the professions.

This is part of the big picture I've been talking about.

The solution I recommend has to do with social responsibility as form of economic sustainability and competitive strategy. I base this off of what I'm observing in the grumblings, debates, and opinions in the healthcare marketplace at large. I also base this on the many business studies that have proven a properly leveraged corporate social responsibility (CSR) as that which adds significant value, and sustainable value at that, for consumers. As such, I think it is fair to say: Healthcare is facing a crisis in social responsibility.

The IRON LAW of Social Responsibility:
The iron law of responsibility says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it.

So I ask you, are our healthcare systems using its power responsibly? I would offer the answer is "No." If we were, we wouldn't be in this pickle. We wouldn't be arguing amongst ourselves while all of our consumers, shareholders, and stakeholders are at our throats in one form or another.

So again, my second recommendation is UNITY. We can't do this if we're divided. We can't solve this if we're bickering over the most minute of things which do NOT cause to help the big picture. This means that each profession needs to humble themselves and stop thinking about their supply side perspectives. Sure, physicians do more than prescribe. Sure, pharmacists do more than dispense. Sure, nurses do more than attend. Sure, rehab therapists do more than massage or exercise. Sure, technicians of all sorts do more than press buttons, wave wands, or take blood. Yes. Yes. Sure. Sure. All of it is correct.

But, the fact of the matter is this, all this bickering is going to take the power away from both provider and consumer... and place it completely into a third arbitrary party. At that point, no one gets a say. Don't think so? Just ask those struggling with new contracts; it is so. And, it is terrifying.


3(a). As such, this is my third recommendation: pursue Value Based Healthcare. What?! This isn't anything new, you say? Well... it isn't. People have talked about it. But, people have never AGREED on it. There are 101 definitions to what value based healthcare is and should look like.

This is what I'd like to suggest: Let's examine value from the perspective of the healthcare consumer.

A quote (likely a paraphrase) from one of my business professors goes something like this: "What companies need to do is to develop products by understanding circumstances in which they are used by customers... " It is here that I believe value can be found for how we can provide healthcare.

We, all of us, as internal stakeholders and a community of healthcare professionals need to look at our consumers and external stakeholders and ask ourselves what their circumstances are to which the need arises that they demand (want/need) healthcare services. For it is in those circumstances we find the first seeds of value.

Therefore, I will share again my taken formula for value in healthcare:

As such, let's work from the bottom up. Healthcare consumers want two things: (1) to stay as healthy as possible for as long as possible, and, (2) when health concerns inevitably arise, to have immediate access to expertise and care.

With this in mind, I ask the rhetorical: Is a 4 minute office visit by a physician educating you that you have a flu and don't need antibiotics valuable to its cost? Or, is it better that a message be sent by a patient, screened by a provider, and response given through a digital patient portal?

Is making that same 4 minute office visit to discuss your back pain really all that valuable? Especially when the result is "do these nonspecific print out stretches," take "these pills," and "come see me in 4-6 weeks if you don't feel better" truly valuable?

Even worse, when after those 6 weeks, you get referred to a physical therapist only to wait for another week or two to get scheduled? Or, would it have been better to register a digital health concern of a musculoskeletal nature and get immediately referred to your physical therapist?

The way things have always been is not driving a Value Based Healthcare System. It is neither good business, nor is it socially responsible. So I continue this vein to ask you the following:

How it is even remotely socially responsible that I regularly hear customers complain...
  • a doctor's visit wasn't worth a copay or time
  • that a PTA did more than the PT ever did
  • when an aide provided ultrasound (and it was billed for)
  • that the CNA is the "real" nurse
  • when the OT seemed to just be following what the PT was saying
  • any ungodly wait time for healthcare services
  • that an MRI was used to both fear monger and justify medical necessity for a surgery (and PT was never consulted)
  • a PT "walks a patient" (noncardiac) for 1000ft and doesn't d/c services in a hospital
  • patients get the imaging run around until they receive a referral to a physical therapist months later
  • prescription drugs are ordered brand name and not generic when possible
  • I mean... the list goes ON!.... FOREVER
The answer is obvious: It isn't. It isn't responsible. It isn't ethical. It isn't right.


The situation is clearing wrong. It is no where near functional, efficient, good for providers, good for consumers, nor right for society. Value Based Healthcare sounds like a great idea; but, does it have any backing? Does the framework even have theoretical grounds for building? What about the "evidence?"

Please continue reading and find my solution for breaking out of the Success Dilemma in Healthcare... AND, an entirely new paradigm of healthcare here at:

The Success Dilemma In Healthcare (Part 2)

Saturday, April 4, 2015

5 Ways Twitter Changed My Life

As part of my efforts in both advocacy and mentorship, I've found that Twitter has been the most effective social media platform. Now, this is an experience in and for myself -- not to say that other outlets such as Facebook, G+, Linked In, etc. are not better or worse. It's simply that I've found that Twitter works for me. And, we tend to favor things we're good at. In any case, I can't advocate enough that both students and young professionals of all walks and of all industries find their way to Twitter that they may benefit as I have.

Here are...!

5 Ways Twitter Changed My Life

1. Connectivity
Perhaps the biggest benefit I've experienced via Twitter has been connectivity. A broader reach, a stronger platform, and, a more visible personage has been the wonderful results of how Twitter has changed my life. There are many months that I've seen my organic Twitter circles help me reach easily in the millions of unique connectivities in just 7-10s of any given campaign, initiative, or effort of awareness. When Twitter is used naturally (without gimmicky follow-backs and such), it truly becomes a social connection. And, as such, people learn about you, grow to know you with their trust thusly earned. As such, they are willing to lend a helping hand to deserving causes and intents. Twitter has exponentially elevated my connectivity.

2. Community
The Twitter community is something truly interesting. Everyone goes about it their own way; through lists, following apps, hashtags, etc. Nevertheless, people develop a community based on mutual interest, shared values, common goals, and a passion to make better the lives around us. The Twitter community is strong; perhaps stronger than any other social media platform. It is stronger, as I see it, because there are no privacy settings to hide behind. Twitter is largely public. And, it is an outlet for voices; for ideas. A community of ideas can lead to an outbreak of action; it can, it has, and it will continue to. Twitter has grown the community to which I belong.

3. Collaborativity
As if it were such a word... the opportunities to collaborate have been never more accessible than via Twitter. The etiquette of many other methods of communication tend to be more stringent, formal, and closed. It is seen as invasive if unanticipated or uninvited solicitations arrive via email, Facebook messaging, etc. Yet, with Twitter... our words and our ideas are open. Thus, such also is our invitations to more closely connect with each other and work with each other. Twitter has given me more opportunities to collaborate than I've ever experienced before.

4. Calling
I've noticed that through my interactions using Twitter, I've found new and expanded purpose... a calling really. It first expressed itself in the realm of exercise and wellness. Then, it came through the promotion of advocacy issues. Finally, it has matured to the realm of student mentorship and business/management consulting. It is easy to have the blinders on too tight; to be too focused on the issues at hand and be blind to all the glorious opportunities available. Twitter allowed me a far broader scope of examination to the areas which I could serve others... the calling to which I could answer. Twitter has the ability to inspire a new calling.

5. Continued Learning
I've heard it said before that Twitter is the world's best community college. I tend to agree! The plethora of new views, novel considerations, radical methods of approach, controversial mindsets, conflicting but constructive interactions... all of which, many times, leads to finding mutual solutions. Such is the benefit of continued learning in the context of Twitter. There have been personages, video channels, blogs, and Tweet chats that I've been exposed to and have taken part of that have completely blown my mind. Such opportunities to learn that I can assure you after 2 bouts of graduate school and 1 bout of undergraduate work that such experiences do not occur in formal education. And, as I've heard so many times from others (to which I've seen as well), such learnings through Twitter are often times far more influential. Twitter has opened my eyes to continued learning in ways never seen through formal didactics.

Some Closing Thoughts
And, so! These are but five ways Twitter has changed my life. Perhaps even 2 or 3 years ago, such a post may have been considered fickle, shallow, even self serving. But truly, Twitter is a unique platform of communication, and of, information exchange. There is an elemental rawness, even nakedness of expression, that makes us interact in a way which perhaps is more real.... than is real.

Certainly there are those who may be considered "trolls." That's what the block function is for. As to the rest of those many wonderful individuals to whom you can connect, commune, collaborate, find a calling with, and continue to learn from... such are the ways Twitter can change your life.

I hope you give it a chance.

Wednesday, April 1, 2015

Developing A Marketing Plan

One of the true joys of this blog is the interactions I get to have with you. One of the interactions I love the most is answering your questions. To this, we have Zack Duhamel to thank for today's post.
Developing A Marketing Plan

There are perhaps an infinite amount of approaches to how experts feel one should develop any given marketing plan for any given service and/or product. The discussion can be broken down by emerging or incumbent products (to which for the sake of this post, we'll include services), emerging or existing markets, sustaining or disruptive innovations, and-on-and-on it can go.

Personally, when I'm thinking through the steps in developing a marketing plan, I tend to want to start with the question "Why?" Why do I need a marketing plan? The purpose is severely important. It is too easy to be blinded as a supplier, "I need plan because I have a product." But, does the consumer need that product, or even, your product? Maybe, and, maybe not. Nevertheless, if one is trying to develop a plan (new or updating the old), it is prudent to at least mentally approach it with a fresh start.

And, while a good marketing plan has many feedback loops, for the sake of this blog let's begin with a three part framework in developing a marketing plan from scratch.

Part 1: The Pains & Gains
This idea is best known from the canvas model; it adapts the jobs to be done approach with the concept of a value proposition. In essence, starting here determines if there is even a market for your product. It's a good place to start; sometimes there is no need for a marketing plan because no market actually exists for you. A good example to think on is this:

Does your product fill a need or reduce a cost? If so, you have just created a customer.

To the customer: What need (job) requires filling? What about filling that need is the most cumbersome for them - their pains? And, what about filling that need do they wish for the most - their gains? Harvard business professor Theodore Levitt is famous for saying, "Nobody wants a 1/4 inch drill—what they want is a 1/4 inch hole.”

Then you must answer, does your product kill pains and make gains for the prospective consumer? If so, you have the foundations of your marketing plan.


Part 2: What Is Your Marketing Mix?
After establishing the fact you do indeed have a market for your product, and, that your product does present a unique value, now we have something to talk about. Your marketing mix.

Most marketers consider the marketing mix as the "4 Ps"
  • Product
  • Price
  • Placement
  • Promotion
Some schools of thought have also included a 5th "P" in the form of Profit. The nice thing about this 3 part framework I'm offering you is that Part 1 *is* your first P, your product. To know that you actually have a product is important! I can't tell you how many times I've seen businesses simply produce something and call it a product when its not really marketable. That's not a product; it's a hobby. In any case, following the 4 Ps, we need to talk about price.

Oh, real quick: Depending on the school of thought, these 4 Ps can occur various orders; but, the idea is the same. You must clearly define each. Personally, I find price to be next after product, for the reason that most consumers are quite price sensitive. Defining the price gives you an internal feedback loop on your value proposition. I've found a commonly accepted definition of value as:

Value = Benefit / Price aka "bang per buck."

I've also seen equations like: Value = Outcome / Cost. But, really, it's all the same.

Value = (Gains made + Pains killed) / Price of product.

Right? All the same. It's a matter of perspective. So check your price. Where would it be that you could make your product the most valuable to them? It's not always the lowest price; lowering your price many times lowers the amount of benefit your product can offer as you may not be able to afford high quality products with such low returns -- so think on that.

Then, we must think of placement. Many marketers also call this "positioning" to some extent. Where will you be placing your product for sales? Online? Retail? Direct sales? B2B? Will it be sold on the top shelf? Middle? In bulk? How will it be made available for consumers? Will you do a product launch or small market tests? Etc. etc. etc.

Finally, you must think of promotions. How will you promote your product? Will you have parallel promotions? Freebies? How will you advertise? Will you engage in guerilla marketing? What's your plan in generating awareness and demand? What about co-branding? Endorsements? Maybe in person sales and demonstrations? All the various ways you have to make your product more interesting and raise share of mind in the general consumers must be considered for this step to be successful. Most importantly, the mental framework of this step must be from the perspective of the consumer.

Finally, a blip about profits. Marketers and business strategists (for myself, I identify as a marketing strategist since I generally am involved less in sales and more in the planning, execution, and supply chain side of business)... are regularly guilty of being too theoretical; requiring financiers and accountants to pull them back into reality. Or, making less than happy friction against supply chain and operations managers who have to deal with the day-to-day results of their ivory tower shenanigans. THEREFORE, it is always important to refresh your screen and examine the 4Ps established against the reality: IS YOUR MARKETING MIX PROFITABLE?

If so, PROCEED!


Part 3: Plot Your Strategic Approach
One of the biggest (and most difficult) responsibilities of any marketer is the screening for future opportunities and threats. Nearly every strategic theorist and marketing guru will hold a different method of approach. Some say go where the demand will be. Others say, go to where the money is. Yet still, another school of thought may be to quell threats and stay ahead of your own strengths.

Regardless of how you decide to plot your strategic approach, you MUST include a regular screening of the future market projections. You can use any framework really: SWOT, Porter's 5 Forces, Blue Ocean Strategy... just to name a few.

Personally, I'm a big fan of the SWOT analysis because it serves as such a great reality check. And, it also loops back to Part 2 which then bounces back to Part 1. SWOT also allows you to analyze your competition to which then you can attack their weaknesses, follow fast and swoop in on their opportunities, and even split their resources such that they must address their threats, minimizing their ability to attend to current strengths. It's a powerful tool if done correctly, systematically, and with the right gauge of reference points.

Perhaps the most important part of Part 3 is the feedback toward Part 2 and Part 1. Just as Part 1 fed-forward to Part 2, Part 2 helps define where you're going with Part 3. But, Part 3 then returns back to Part 1 to answer the question: "Is my plan sustainable?" Will it work out in the long run? If so, push that same thought forward to Part 2 and update your marketing mix. Feed that data into Part 3 again and ensure you're still on course for long term gains. And, of course, continue the loop back to Part 1 to ensure that your product is still marketable - BECAUSE - once it's not, you need to either change your product, change your marketing mix, or change your strategic approach entirely.

So you can see, even just the development of a marketing plan is FOUR DIMENSIONAL! The execution, now there's a chess game to be played.


Some Closing Thoughts:
And so, this is my three part framework for developing a marketing plan. And, I call it "development" because a good marketing plan is never complete. It needs to be constantly updated, refreshed, and made relevant to the ever changing market environment. Also, it is JUST the beginning as there are sooooo many other frameworks and strategies of approach for success. These are just the first steps in making sure the foundations of any marketing plan you slate out is done so on solid ground.

I hope you've enjoyed this episodic Q&A blog. Again, thanks to Zack for bringing up the topic. I hope you all have found it beneficial to your practice, business, organizations, and sense of personal edification.


Until Next Time,
-Ben

PS. Any and all questions for future blog posts are warmly welcome. Talk soon!

Thursday, March 5, 2015

5 Wasteful Management Tasks

This post is inspired by my random pontifications as I'm closing upon the completion of my MBA in April. Being an MBA candidate has been very exciting; the finish line is near and now is the time to keep the momentum up! Well, I was thinking one day about some of the tasks I had to do as a manager and tasks done to me by managers. Some management processes are simply in place as the nature of the organizational beast. Other times, they are implemented by the managers themselves as a personal lever. In either case, I find that there exists (at least!) five management tasks that are truly wasteful and destructive to organizational values.

Here are...!

Five Wasteful Management Tasks
1. Scheduling
  • Scheduling is perhaps my biggest pet peeve when it comes to the misuse of managerial resources. It doesn't take a manager to schedule. In fact, it is a double waste as this takes away from a manager's productivity and ability to attend to business unit issues on a daily basis and forces them to do something less profitable to the company at large. Scheduling is better performed by an internal call center department. Having a department specifically dedicated to the scheduling, pulling, and pushing of human resources on a day to day and hour by hour basis under request of the managers of each business unit centralizes human resources when it comes to labor hours. It also allow the manager to be a manager, not his/her own secretary per se. The way I see it, managers are paid and tasked as stewards of business units. They add value by their very presence, their ability to maintain healthy operations and optimize them over time. It is their job to develop and cultivate the growth of excellence in their business unit, and, to bear the weighted duty of problem solving when the proverbial fecal matter hits the fan. Companies are far better suited in freeing managers to do their job and not bear down upon them tasks better suited for a separate department which can by itself already create far more value across the organization than an over tasked manager repeated in series throughout the chain of command.
2. Performance Assessment Robbery... Oh, sorry. I mean "reviews."
  • Let's face it, yearly reviews tend to have some element injected into the process where the most deserving employees are typically docked just enough points to rob them from a meritorious raise. WHY is this generally ubiquitous across nearly all organizations? Honestly, I have no good answer. Everyone says this is to cut costs. But, I think not only does it do that, it discourages good staff (possibly decreasing their productivity) and honestly puts them at risk of leaving the organization, lowering the human capital available to the firm. This is truly a stupid process. If employees perform well, reward them! Don't take from them simply because it is the thing to do. If times are tough, say so. People will get it. But, this underhanded way of cutting people off at the knees.... Ugh! Makes me mad.
3. Intra-departmental Politics
  • While maneuvering through external politics is absolutely a critical function and required skill of a manager, making sure everyone is playing nice in the playground is an infantile and rather ridiculous task given to management. I found that one of the most insane and ridiculous tasks I had to do as a manager was playing teacher for kids to play nice with each other. Honestly, if the policies were in place, I'd have a better solution. GO TO HR! That is what HR is for. It is wasteful for managers to play mediator between team members for petty differences. Now, for professional disagreements, there is definitely a duty upon the manager to resolve the issues. However, when things are truly petty... that is when they should go the proverbial principal. Go. To. HR! Deal with it there and don't come back until you do. The workplace is no place for personal drama.
4. "The budget"
  • Corporate accounting is usually in charge of accounting these days. Having managers re-double their efforts on the numbers, in my opinion, is a little redundant and qualitatively backwards. Corporate accountants are highly trained for the very specific purpose of making sure the budget will fit operational goals. The job of the manager is to fit their operations within those parameters, and if unable, to put in a request/report for variance. Nevertheless, I've seen this redundancy occur (typically in larger organizations) by where both accountant and manager go over the same budgetary considerations. Unless the manager needs to serve as an accountant for lack of one, this just seems silly. Wouldn't it be a better use of resources for the manager to dedicate themselves to the operational aspects of their business unit if they have the support elsewhere? I'm not saying for managers to ignore their own budget, I'm simply saying there is no need for two people to do the same job when one is clearly better at it -AND- is going to be the final say anyway. A manager's responsibility over the budget should be operational; the accountant's responsibility should be financial. That is where they should meet and those are the grounds they should work from.
5. Meetings
  • Surely, there are meetings where management level staff need to be present. However, my experience is that the majority of meetings exist because they always have. Some meetings can be attended to by line-staff or senior-staff as a better allocation of resources. Why? Well, first the staff member will feel privileged to go to a management meeting to represent the manager, the team members, and the department at large. Secondly, many "meetings" are merely grumblings on the daily grind of things. Managers tend to know less about this than those who are already in the front line. Who better to represent concerns and bring solutions to issues than front line staff? Also, so very many meetings can and should be done virtually; either through live digital means or through shared online documents. Really, the purpose of meetings is to conglomerate ideas; if this process can be done with more agility, why not do it?

So, those are my top five pet peeve management tasks which I think should simply be erased off the face of the earth if possible. Now, certain firms will require cross-functionality because of size, scale, or leanness. In which case, sure, having a manager schedule because the business unit is the manager and two other team members... that makes perfect sense. In that same situation, the manager should certainly also serve as the accountant if there is no further infrastructure in their firm. However, should the firm be of scale and have the available resources, doesn't it simply make more sense to have value added across two business units than for double the value to be taken from one, by making managers perform tasks outside of their true purpose and cut value to a fraction? I think so! But, that's just me.

Just my thoughts until next time!

Take care,
-Ben