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Control the Narrative or Squander it

Control the Narrative or Squander it. Creating and Executing a Supply Chain Marketing Strategy to Propel Your Change Management Efforts. Why Is Marketing Important in Supply Chain?. Why Is Marketing Important in Supply Chain?. Learning outcomes. Learn the 5 steps to build a marketing strategy

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Control the Narrative or Squander it

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  1. Control the Narrative or Squander it Creating and Executing a Supply Chain Marketing Strategy to Propel Your Change Management Efforts

  2. Why Is Marketing Important in Supply Chain?

  3. Why Is Marketing Important in Supply Chain?

  4. Learning outcomes • Learn the 5 steps to build a marketing strategy • Learn branding language and tactics • Get inspired to dedicate more time to communicate your successes

  5. St. Luke’s Health System (Boise, Id) IBM Watson Top 5 Quality: • $2.5B annual revenue • Eight hospitals, 300 clinics • 15,000 employees

  6. My Job Description • Supply Chain Management (SCM) Director of Systems Support, Performance, Risk and Analytics: • Unexpected requirements: • 10 years of Communications, Marketing, Public Affairs, or Supply Chain experience • Performance in developing Communications strategy

  7. My Background

  8. Polling Question • Does your Supply Chain department have someone with formal Marketing responsibilities in their job descriptions?

  9. Marketing 4 PS IN Supply Chain Product = what: services as Supply Chain professionals Price = how: amount of savings we deliver Promotion = why: communicating product benefits Place = where: accessibility of our services

  10. 5 Steps to a Supply Chain Marketing Plan • Assess current situation vs. where you’re going? • Conduct a stakeholder assessment • Develop a marketing strategy to support your goals • Develop the supporting communications tactics • Execute, assess, and adjust based on assessment

  11. #1 Gap Analysis: Current vs. Goal • Higher quality products/care • Lower cost • Stakeholder engagement St. Luke’s Supply Chain = poor reputation Goal

  12. #1 Example: Gap Analysis of Heart PPI • Beginning: • Mature service line • Impatient physicians • West vs. East hospitals divergent strategies • Distracted Supply Chain • Goals: • Early win with big savings • Successful model for other service lines • West and East unified • Personal success

  13. #2 Stakeholder Assessment –Heart PPI example

  14. #3 Develop a marketing strategy to support your goals

  15. #3 Heart PPI Example

  16. #4 Develop the supporting Marketing and communications tactics • Regular 1:1 conversations with most influential stakeholders • Strong committees, include and leverage if physicians if possible • Presentations – Board, System Ops (5 out of 8 months) Management Councils, etc. • Health System articles • Monthly newsletter to 1600 ERP requestors • Emails – internal within SCM and external

  17. #4 Heart PPT Example • 6:30am – 8am: 18 Heart physicians vote to standardize for $700K savings • Drive 2 hours from Twin Falls to Boise • Announce news on stage with two physicians to 300 people at 10:30am • Tell a great story widely, publish an article, and drive traffic to article

  18. # 4 Additional examples - Financials Communicate Finance-validated savings constantly

  19. # 4 Example – Financials Falling Short SCM always provides transparency and accountability

  20. # 4 Example - Simplistic Venn Diagram

  21. # 4 Additional Examples - Analytics • Celebrate how far have we come on clinical standardization • Cajole how much room for improvement remains Cajole Celebrate!

  22. # 4 Example to Staff - ELEVATE Series • Multi-channel approach to unify our department with educational, interactive, & social opportunities • Bi-weekly, targeted approach to implement positive changes in attitude, communication & job satisfaction Elevate performance. Elevate Skills. Elevate Confidence. Elevate Each Other.

  23. Marketing Article Example – CEO Tour • Sharing this unique experience with the rest of our system through our system-wide Source article. • Featuring leadership’s efforts to see ground-level operations and communicate goals and priorities personally. • Highlights our innovation with Concordance, transparency, and focus on patients and staff.

  24. DR. “Ethi” Korn Article

  25. Summer Picnic Article

  26. VP Promotion article

  27. Cultivating Culture article https://www.linkedin.com/pulse/how-st-lukes-supply-chain-management-cultivating-lisa-baratcart/

  28. # 4 Additional Examples - Unfavorable Variances $24.4M in Supply Chain Savings $16.2M in Supply Expense Variance Partial Root Causes: No formal budget expense management plan Bait and switch vendor strategy, CCSIs, % on PO

  29. Supply Chain Management – FY18 Summary Supply Chain has transformed itself from a tactical department into a trusted and strategic partner for the health system. Using influence and collaboration, we continue to expand our partnerships with clinicians, physicians, operations and suppliers to drive down supply and service costs while mitigating risk and ensuring that safety, quality and the patient experience are not compromised through irrational variation. • Best Practice Professionals: • Employ these repeatable, scalable practices in all our interactions with our customers: influence model, project/change/stakeholder management, process improvement, analytics, communication, risk mitigation, and a Finance-validated measurement system • Lead strategic negotiations and have different RFP options depending on how involved and/or fast it needs to be • Organizational Leadership: • FY18: 6.3M in hard dollar savings; Supplies as a % of Net Revenue below Budget, $13M below volume adjusted budget; $5.3M cost avoidance savings • Transparency and accountability: actuals vs. planned • Strong partnerships with physicians including CMO’s Surgical Supply Affinity Group • Continued especially strong partnerships with IT, Pharmacy, Clinical Engineering, Legal, and Finance • Innovation: • Continue optimizing a new hybrid distribution model • Continued success in Group Purchasing Organization change to HealthTrust with 80% compliance achieved and 1,038 items converted in FY18 alone • Only non-owner with participation on all HealthTrust Advisory Councils • National presentations at AHRMM, HealthTrust, and Infor/Lawson

  30. Best Practices Professionals: • Employ these repeatable, scalable practices in all our interactions with our customers: • Influence model, project/change/stakeholder management, process improvement, analytics, communication, risk mitigation, and a Finance-validated measurement system • Lead strategic negotiations and have different RFP options depending on how involved and/or fast it needs to be

  31. #5 Execute, assess, and adjust based on assessment Ranked #19th Healthcare Supply Chain out of 83 total(!) by Gartner Analysts; #52 overall on Gartner Top 25 Ranking methodology

  32. #5 assess and Adjust • Project post mortems • 1:1s with key stakeholders, bi-monthly at least • Survey Supply Chain staff annually on engagement and satisfaction • Regularly refer to North Star goals: • Does it relate to physicians? • Does it deliver impactful savings? • Does it foster key stakeholder relationships?

  33. Thank you!

  34. Why Is Marketing Important in Supply Chain?

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