We continue our series on Strategic Management this month, and I trust you are finding the information useful. 

Strategy is a key component of our success, and must be considered, particularly in the economic conditions of today. In the first article, we introduced Strategic Management as a concept, followed by last month’s look at the external environment and its effect on our organizations. We must know what is going on around us if we are to remain competitive, so the environment in which we live and operate is important for us to understand. This month we will evaluate the internal environment, but from a slightly different point of view. We will evaluate the concept of value and how we can provide that perception in the eyes of those we seek to serve. I think you will find this of great benefit to your office.

Value
The key issue we should concern ourselves with from an internal perspective is how we can create value. We want those who come to us for care to feel as though they received a real value for their hard earned dollars. I think that is what all of us expect, and we need to consider our own office operations from that perspective. Taking a long, hard look at ourselves will often pay dividends. That can be difficult, because we are often looking through a cloudy lens.

We must be completely objective so seeking opinions of the patients we serve can really be beneficial. We need input from the stakeholders with which we interact, and also the advice of a professional consultant may be a benefit. These folks are trained to assist you in improving your organization’s performance, and if you can, seek their advice.

The Organizational Value Chain
What is value? According to most “experts”, value has two primary factors, cost and performance. Does it perform at the level it is supposed to, and is it fairly priced? Low-cost and cheap are not related to value in this context. To evaluate how our organizations can provide real value, Swayne, et.al. (2008) provide us with a descriptor they call the Organizational Value Chain. Porter and others have used the term in previous publications, but this one is especially good for our purposes.

This chain consists of several points along a service continuum where we have opportunities to provide value to patients. Pre-service, point-of-service, and after-service activities are a part of the chain that are opportunities for us to provide value. All of these are supported by three support activities: organizational culture, organizational structure, and strategic resources.

Pre-service activities- these activities are undertaken before patients ever choose to come into our office. These activities include marketing activities that define and attract our target patients/customers to the office. Important is our pricing and distribution models as well as promotional activities.

Point-of-service activities- These include our clinical operations, processes, and point-of-purchase marketing activities. In essence, these are activities that relate immediately to patient satisfaction. How are patients treated across the office? Was the receptionist friendly and helpful? Was the clinical staff able to handle the patient’s wants and needs efficiently and effectively? These and many other activities are important to our success in this step in the chain.

After-service activities- This is an often neglected factor in the chain. Correct billing, follow-up on services and product performance, and follow-up marketing are among the very important steps in after-service activities. Correct billing is especially significant in third-party billing, to assure all parties are accurately compensated and paid. Anyone who has had to deal with today’s third-party payment system realizes that it can often be inefficient. Billing in a reasonable time frame is important to assure greater efficiencies.

Often we can also assure repeat visits and a long term patient if we do not forget them after they are gone from immediate service. Using patients newsletters, and direct mail to current patients/customers is always an excellent tool to drive them back in for additional services and products.

Support Activities
I don’t know about you, but nothing irritates me like poor service. I do some consulting across the country and I must say that I have seen both ends of that spectrum. There are several factors that can define a patient’s perception of the service we provide. The first of which is organizational climate. In one office I was in recently, I was in the place for approximately 10 minutes, and not one person spoke to me in any fashion. In fact, it was a large chain organization that featured an Optometric office in the front of the establishment with the dispensary to the left. As I entered the facility the doctor’s receptionist saw me come in, and actually looked away without so much as a welcome, and I was left with a very poor first impression.

Often that is all you get in today’s ultra-competitive environment. I went into the dispensing area, which was very attractive and inviting, but again, not one person spoke to me at all. I left without meeting or speaking to a soul, and they were not busy. In my travels, I often go into Opticians and Optometrists offices to say hello, and encourage them to read our publication. I am always amazed at the responses I get. Some are pleased to see you and speak immediately, some never speak. While I will never know the bottom lines of these organizations, which would you perceive as having the higher level of customer service? This is what we mean by organizational climate, and it can be taught.

Make sure your staff greets people, even when busy. It takes only a moment to say sorry to keep you waiting; we’ll be with you in a short while. Remember, and this is very important, that this idea of a positive organizational climate begins at the top of the food chain……..meaning you if you are the boss! You must be a model for the staff to emulate, especially when it involves ethics and customer service.

The second is the organizational physical structure. Is the office laid out to maximize patient/customer processes and efficiency? Do patients have to travel excessively to get to their destination? For example is the dispensary convenient to the refraction area? In other words is the office efficiency at the level it needs to be for staff and patients in order to facilitate ease of utilization? In larger organizations, the actual design of the organization is more important. Is it departmentalized, functionally designed, or is a matrix organizational design employed? We will leave that for another article, since most of those in eyecare are smaller organizations. These specific office issues are much more important for us.

Our final topic is strategic resources. Do we provide sufficient funds to support our initiatives? Technological and human resource needs are examples of initiatives that require adequate funding. One office I visited had patients backed up three deep and had a sole receptionist on duty to meet the demand, which made for unhappy patients and inefficient office flow. Having the right number of staff available is an example of strategic resources. Technology today is important, and probably more than ever before. Patients expect to see the bells and whistles and they can provide us with a significant competitive advantage. If we are not up-to-date, we often are seen as “less than” the competition.

Conclusion
As we conclude this month’s article, let me encourage each of you to consider this concept of an Organizational Value Chain. Making certain we can remain competitive requires that we consider the value we provide in our service area. Our target market has specific needs and wants, and those who meet them will be successful long into the future. But keep in mind, the process is on-going. We must always remain cognizant of changes within the marketplace and adjust accordingly. In previous articles, I have addressed SWOT, reviewing our strengths, weaknesses, opportunities and threats. This month, we have described a second way we should evaluate ourselves…the value we offer our patients.

Next month we continue with this concept of Strategic Management. I hope this topic has been useful and has provided some insight into methods we can use to be more competitive in our individual markets.