Selling to the C-Suite

1. Selling to the C-Suite Concepts

2. Objectives • Profile: Build a typical profile for each of the C-Suite positions in terms of role and responsibilities • Politics: Provide a sense of the politics often seen between the C-Suite, Department Directors and Physicians • Challenges: Give a realty-check of the obstacles we will have trying to get time with the C-Suite

3. Section 1: C-Suite Profiles and Politics

4. Profile CEO – Chief Executive Officer • Very strategic responsibilities. Community-facing ambassador for the hospital. • Little focus on hospital operations or tactics. These they defer to other members of the C-Suite. • Though powerful, may not be the person to involve in a supply chain decision. • Focus Areas: • Fundraising for hospital projects • Recruiting of executives and VIP physicians • Community relations and goodwill • Large insurance and provider contracts • Direct Reports: All other C-Suite members. However, they rarely question the recommendations of a competent CFO.

5. Profile CFO – Chief Financial Officer • Very strategic responsibilities. Typically, most powerful C-Suite executive. Other C-suite members often need CFO approval for their initiatives (especially CIO, CNO, CMO and often COO). • Has been assuming more responsibilities from COO, CNO. • Also, the most over-scheduled C-Suite person. Hard for us to justify a CFO appointment. • CFO will typically send supply chain issues to DMM or Clinical Department Directors. Also, CFO has little clinical or quality orientation. • You may need a Department Director (CV, Materials) other C-Suite executive to sponsor you for a CFO meeting. • Focus Areas: • Strategic margin management • Revenue cycle management • Improving hospital bond ratings • Supply Chain – Typically only involved in consulting engagements, GPO issues, etc. • Direct Reports: DFPS, DMM, IT, sometimes key Clinical Department Managers

6. Profile COO – Chief Operating Officer • Strategicand tactical responsibilities. Charged with integrating the hospital’s strategic plan with daily operations. • COO is more powerful if they manage Clinical Department Directors and/or Materials Management Director. • If COO doesn’t manage DMM’s and CDD’s, then COO may have little influence on supply chain decisions. • Focus Areas without CDD or DMM reporting: • HR, recruiting and hospital morale • Compliance • Environmental services • Often they run P&L • Direct reports: Head of HR, Legal, various department directors. COO’s have been ceding responsibilities to CFO.

7. Profile CNO – Chief Nursing Officer • Very tactical position. CNO’s have typically been promoted due to clinical competence. Are not conditioned to think in terms of economic strategy. • CNO usually has to get approval from CFO for economic initiatives. • Occasionally, certain Clinical Department Directors will report to a CNO. If so, the CNO can be an ally in supply chain decisions. • Focus Areas: • Quality – Ensures low patient event reporting • Staffing – Oversees optimal staffing and avoidance of costly agency nursing labor • Throughput – Provides adequate processes for efficient patient throughput. • Direct Reports: CCU, ICU, Post-Op. Some CNO’s have Clinical Department Directors.

8. Profile CMO – Chief Medical Officer • A consular position, often does not have significant daily departmental responsibilities . • CMO often acts as chief clinical advisor to CEO, CFO and COO. • One of their main responsibilities is patient quality and safety. If so, CMO can be an advocate in supply chain decisions. • The CMO position has grown in economic stature with the recent CMS rulings around in-hospital events. • Focus Areas: • Quality and safety – Charged with patient outcomes • Hospital-Physician relations • Hospital-Provider relations • Direct Reports: Usually not a large number. Sits on important hospital committees and is seen as a moral compass for patient care.

9. Section 2: Challenge of Calling on the C-Suite

10. Targeting Within the C-Suite • Who: Will depend on hospital. • CEO – Usually not involved in supply chain • CFO – Ideal target, hard to see • COO – Only if DMM or CDD’s report in • CNO, CMO – Influencers • DMM’s, CDD’s – Normally, must-have allies at a C-Suite meeting • How: It’s really tough to get on a CFO or COO’s calendar. Their admins will check with them before scheduling any meeting. We need a compelling reason for a C-Suite meeting.

11. C-Suite: Topics with Value Revenue Enhancement ex: Market-Development activities that will drive private-insurance coverage to their hospital. Strategic Cost Reduction ex: Models that work for gaining physician agreement to consolidate vendors for key PPI service lines. Regional Market Information ex: Latest data showing percent changes in community payor mix as a result of last month’s layoffs at the local manufacturing plant. National Best Practices ex: How hospitals are leveraging their acquisitions of physician practices to maximize supply chain savings. Financial Tools ex: Techniques CFO’s use to reduce their cost to service debt through innovative methods of improving hospital bond ratings.

12. C-Suite: Topics with Value (cont’d) What Won’t Work: • “We can save 15% on your EP budget.” You will be directed to talk with the DMM or CDD. • “Our lead failure rate is the best in the industry.” Unless they have had significant patient safety issues, you will be directed to a CDD. Caveat: Most DMM’s and CDD’s don’t want us talking to their bosses. It’s important to first build that Director-level relationship. In many instances, the Director can help you gain entrée to the C-suite. Takeaways: • Meeting content must have strong strategic value. • During first meeting, this value will set the table for a need for a subsequent meeting.

13. Section 3: For Discussion, “How do we create content that will be compelling to the C-Suite?”

14. C-SUITE SELLING Strategic Corporate Sales/ National Accounts Meeting 11/10/10 For SJM Internal Use Only – Do Not Distribute

15. Objectives • Profile: Build a typical profile for each of the C-Suite positions in terms of role and responsibilities • Politics: Provide a sense of the politics often seen between the C-Suite, Department Directors and Physicians • Challenges: Give a realty-check of the obstacles we will have trying to get time with the C-Suite

16. Section 1: C-Suite Profiles and Politics

17. Profile CEO – Chief Executive Officer • Very strategic responsibilities. Community-facing ambassador for the hospital. • Little focus on hospital operations or tactics. These they defer to other members of the C-Suite. • Though powerful, may not be the person to involve in a supply chain decision. • Focus Areas: • Fundraising for hospital projects • Recruiting of executives and VIP physicians • Community relations and goodwill • Large insurance and provider contracts • Direct Reports: All other C-Suite members. However, they rarely question the recommendations of a competent CFO.

18. Profile CFO – Chief Financial Officer • Very strategic responsibilities. Typically, most powerful C-Suite executive. Other C-suite members often need CFO approval for their initiatives (especially CIO, CNO, CMO and often COO). • Has been assuming more responsibilities from COO, CNO. • Also, the most over-scheduled C-Suite person. Hard for us to justify a CFO appointment. • CFO will typically send supply chain issues to DMM or Clinical Department Directors. Also, CFO has little clinical or quality orientation. • You may need a Department Director (CV, Materials) other C-Suite executive to sponsor you for a CFO meeting. • Focus Areas: • Strategic margin management • Revenue cycle management • Improving hospital bond ratings • Supply Chain – Typically only involved in consulting engagements, GPO issues, etc. • Direct Reports: DFPS, DMM, IT, sometimes key Clinical Department Managers

19. Profile COO – Chief Operating Officer • Strategicand tactical responsibilities. Charged with integrating the hospital’s strategic plan with daily operations. • COO is more powerful if they manage Clinical Department Directors and/or Materials Management Director. • If COO doesn’t manage DMM’s and CDD’s, then COO may have little influence on supply chain decisions. • Focus Areas without CDD or DMM reporting: • HR, recruiting and hospital morale • Compliance • Environmental services • Often they run P&L • Direct reports: Head of HR, Legal, various department directors. COO’s have been ceding responsibilities to CFO.

20. Profile CNO – Chief Nursing Officer • Very tactical position. CNO’s have typically been promoted due to clinical competence. Are not conditioned to think in terms of economic strategy. • CNO usually has to get approval from CFO for economic initiatives. • Occasionally, certain Clinical Department Directors will report to a CNO. If so, the CNO can be an ally in supply chain decisions. • Focus Areas: • Quality – Ensures low patient event reporting • Staffing – Oversees optimal staffing and avoidance of costly agency nursing labor • Throughput – Provides adequate processes for efficient patient throughput. • Direct Reports: CCU, ICU, Post-Op. Some CNO’s have Clinical Department Directors.

21. Profile CMO – Chief Medical Officer • A consular position, often does not have significant daily departmental responsibilities . • CMO often acts as chief clinical advisor to CEO, CFO and COO. • One of their main responsibilities is patient quality and safety. If so, CMO can be an advocate in supply chain decisions. • The CMO position has grown in economic stature with the recent CMS rulings around in-hospital events. • Focus Areas: • Quality and safety – Charged with patient outcomes • Hospital-Physician relations • Hospital-Provider relations • Direct Reports: Usually not a large number. Sits on important hospital committees and is seen as a moral compass for patient care.

22. Section 2: Challenge of Calling on the C-Suite

23. Targeting Within the C-Suite • Who: Will depend on hospital. • CEO – Usually not involved in supply chain • CFO – Ideal target, hard to see • COO – Only if DMM or CDD’s report in • CNO, CMO – Influencers • DMM’s, CDD’s – Normally, must-have allies at a C-Suite meeting • How: It’s really tough to get on a CFO or COO’s calendar. Their admins will check with them before scheduling any meeting. We need a compelling reason for a C-Suite meeting.

24. C-Suite: Topics with Value Revenue Enhancement ex: Market-Development activities that will drive private-insurance coverage to their hospital. Strategic Cost Reduction ex: Models that work for gaining physician agreement to consolidate vendors for key PPI service lines. Regional Market Information ex: Latest data showing percent changes in community payor mix as a result of last month’s layoffs at the local manufacturing plant. National Best Practices ex: How hospitals are leveraging their acquisitions of physician practices to maximize supply chain savings. Financial Tools ex: Techniques CFO’s use to reduce their cost to service debt through innovative methods of improving hospital bond ratings.

25. C-Suite: Topics with Value (cont’d) What Won’t Work: • “We can save 15% on your EP budget.” You will be directed to talk with the DMM or CDD. • “Our lead failure rate is the best in the industry.” Unless they have had significant patient safety issues, you will be directed to a CDD. Caveat: Most DMM’s and CDD’s don’t want us talking to their bosses. It’s important to first build that Director-level relationship. In many instances, the Director can help you gain entrée to the C-suite. Takeaways: • Meeting content must have strong strategic value. • During first meeting, this value will set the table for a need for a subsequent meeting.

26. Section 3: For Discussion, “How do we create content that will be compelling to the C-Suite?”