The Evolution of a Professional Association What Needs to Shift over the Next Decade?

1. The Evolution of a Professional Association What Needs to Shift over the Next Decade? Allan Macdonald, PT, MBA OPA Interaction 2018 April 14, 2018

2. Session Learning Objectives • After attending this session participants will be able to... • Describe the trends that are driving change for professional associations • Discuss the various value propositions of a professional association • Recognize aspects of a professional association’s strategic direction that may need to evolve in order to deliver on its mission

3. Trends Driving Change

4. Changing Nature of Work Source: David H. Autor, Brendan Price. The Changing Task Composition of the US Labor Market: An Update of Autor, Levy, and Murnane (2003)∗, June 21, 2013. http://economics.mit.edu/files/9758

5. Changing Nature of Work Source: David H. Autor, Brendan Price. The Changing Task Composition of the US Labor Market: An Update of Autor, Levy, and Murnane (2003)∗, June 21, 2013. http://economics.mit.edu/files/9758

6. Our Opportunity Major Trend Wicked Question • Has the evidence based care movement turned us into automatons? Changing Nature of Work • How do we bring craftwork back into the equation?

7. Competitive Red Zone Ligament Sprain Adapted from Michael E. Porter, Elizabeth Teisberg. Redefining Healthcare, 2008 Prescription -advise and authorize the use of (a medicine or treatment) for someone Intervention -Manual therapy -Modalities -Exercise Therapy Monitoring -Modifying home exercise program Prevent recurrence -Design off-season training program Diagnosis -Hx and Physical -Ordering tests -Consulting other HPs

8. Our Opportunity Major Trend Wicked Question • When do we collaborate, and when do we compete? Competitive Red Zone • Using a strategic framework to make key competition based decisions…

9. Consolidation Across Markets • Source: http://www.stmichaelshospital.com/media/detail.php?source=hospital_news/2017/0801

10. Our Opportunity Major Trend Wicked Question • Will we be the consolidator, or the consolidated? • How do we get out ahead of consolidation in the professions? Consolidation Across Markets

11. The Amazon EffectHyper Consumer Driven Market • Growing demand for everything right away, the job to be done concept more important that ever • Job to be done • I want to stay healthy. • Once I am unhealthy/don’t feel well, I want to know why. • Once I know why, I want to know how to get back to being healthy • Once I’m healthy again, I want to know how I can stay healthy • What does the client want… really? • Blockbuster example (customer experience) • They don’t necessarily want PT…They want the outcomes those things deliver. Status, feeling good, peace of mind, freedom, etc. 

12. Our Opportunity Major Trend Wicked Question • What would the Amazon Association look like? • What is it that Members really want? Really? The Amazon Effect

13. The Devolution of the Hospital • Hospitals were once a place to go where when only sick++, and self-management and home based care dominated most households (too expensive, outcomes just as good) • Along with many heroic discoveries and innovations along the way, (cardiac surgery anyone??) hospitals have been trying to position themselves as the one stop shop for everything from shopping for pharmaceuticals to blood work to chemotherapy. • Unbelievably expensive • Care is moving ”to the community”, with a shift towards more self management and “ageing at home”….

14. Our Opportunity Major Trend Wicked Question • What would happen tomorrow if hospitals disappeared? • The power is shifting away from its traditional power base - how do we get ahead of the curve? The Devolution of the Hospital

15. Value Proposition for Professional Associations

16. Providing value within the evolving client/health professional relationship Creating Value: People come to you with a “job to be done” that they cannot do themselves. Helping them accomplish that job is the way that you create value. "People don't want to buy a quarter-inch drill. They want a quarter-inch hole!“ Theodore Levitt, Harvard Business School Source for “Job to be done”: Christensen, C. The Innovator’s Prescription.

17. What do clients/families want? What jobs does she/he want done? • I want to stay healthy. • Once I’m unhealthy/don’t feel well, I want to know why. • Once I know why, I want to know how to get back to being healthy. • Once I’m healthy again, I want to know how I can stay healthy And most importantly, I need all of these jobs done effectively, affordably, and conveniently.

18. What are “jobs to be done” for association members?

19. Definition of a Business Model A business model describes the rationale of how an organization creates, delivers, and captures value Other Definitions Rationale: A set of reasons or a logical basis for a course of action. Value creation and delivery: Providing a product or service that fulfills a need that someone couldn’t fulfill themselves, don’t want to fulfill themselves, or they didn’t even know they had that need in the first place. Value capture: Retain some of the value you create (for profit sector). Renewal of grants, donations (not for profit sector). Source: Osterwalder, A & Pigneur, Y. (2010). Business Model Generation.

20. Business Model – A Simple Example A business model is not one thing, but rather a set of decisions that a business makes in order to deliver on the “job to be done”

21. Business models – Business Model Canvas 7 Most important things a company must do to make its business model work 4 Types of relationships an enterprise establishes with specific CS’s 8 Network of suppliers and partners that make the business model work 2 Bundle of services that create value for a specific CS 1 Different groups of people an enterprise aims to reach and serve 3 How an enterprise communicates with and reaches its CS to deliver its VP 6 Most important assets required to make the business model work 5 Cash an enterprise generates from each CS 9 All costs incurred to operate the business model

22. “TYPICAL PROFESSIONALASSOCIATION” PROBLEM SOLVING INFLUENCING, MARKETING, BRANDING MEMBERS ADVOCACY ACTIVITIES TOOLKITS INSURANCE PROGRAMS TRANSACTIONAL ACADEMIA REGULATORY COLLEGE HEALTH HUMAN RESOURCES, SPACE EMAIL NEWLETTER WEBSITE STAFFING, EQUIPMENT, LEASE, MARKETING COSTS FEES PAID BY MEMBERS CONFERENCE JOB LISTINGS

23. “THE MATRIX” RELATONSHIP MANAGEMENT, NETWORK/ PLARFORM MGMT, COMMUNITY ENGAGEMENT HELP KEEP PEOPLE HEALTHY LIFELONG RELATIONSHIP HEALTH CONSCIOUS WAGE EARNERS ENGAGED PROFESSIONALS SPECIALISTS CONTRIBUTE TO MEMBER SUCCESS CREATE CONDITIONS FOR CONNECTION ONLINE PLATFORM TO HOST PD OPPORTUNITIES VIRTUAL NETWORK/ PLATFORM EXPERTS PD VENDORS HHR, NETWORK SECURITY AGREEMENTS, VIRTUAL NETWORK PLATFORM VIRTUAL NETWORK PD ONLINE PLATFORM MEMBERSHIP FEES ACCESS TO VIRTUAL NETWORK (MEMBERS) ACCESS TO PLATFORM (PD DEVELOPERS) NETWORK/PLATFORM CREATION, NETWORK UPKEEP/UPGRADES, CONTRACT/RELATIONSHIP MGMT

24. Source: Osterwalder et al. (2014). Value proposition design.

25. Evolution of an Association’s Strategic Direction

26. The Association as …. Connector Disruptor Filter

27. Any questions… would be great to chat Allanandrew.macdonald@utoronto.ca macdo1977@gmail.com www.linkedin.com/in/allanajmacdonald @thearmchairpt