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Showing posts from 2008

Employee Satisfaction + Service Excellence = Customer Evangelists

The Crisis Faced with a well documented financial meltdown , the global consequences and a deep national recession , how can a hospital or system CEO keep the doors open and the lights on? The answer is simple, yet complex and difficult to carry out. Few try and most of those that do fail. Think about this for a moment, there is little if any differentiation in the healthcare marketplace . Hospitals on average look the same . They provide the same services, have the same managed contracts contract and even have similar medical staffs. Patient satisfaction runs in the 80th – 90th percentile satisfied. Looks like an industry that is very close to becoming a commodity which will eventually compete on price alone. The hospital CEO, medical business leader, managing partner, vice president, director or manger needs to be creating customer evangelists to not just survive, but grow and thrive in this and any future environment. The answer: Customer Evangelists! A customer evangelist i

Financial meltdown, recession, mergers, affiliations, uninsured and retail clinics

With the financial market meltdown, worldwide recession I say look for new mergers and closings in the hospital industry. Even though many are profitable, well at least slightly, that will go by the way side with investment income losses, higher numbers of uninsured, rising bad debt and lengthening delays in Medicaid payments from the states, the picture is bleak. Declining utilization and tighter reimbursement from managed care doesn’t help either. Oh yea, those pesky retail clinics won’t help either. I am surprised more hospitals don’t go that route, partner with their doctors and drive those babies out of their markets. Insuring the 45 million and growing uninsured is not in the cards fore the foreseeable future, not till 2010 at the earliest . President-elect Obama has his hands full. First priority is fixing the financial system, second is the economy, and third is healthcare. Without the first two, the third never happens. Hospitals are cutting back, but it is in marketing as a

Marketing's Planning Process: An Ongoing Activity, not an Annual "Trip to the Dentist"

As your marketing organization approaches the end of its annual planning cycle, remember that it shouldn't end on January 1, 2009. As marketers we must get better at managing our annual and intra-year process as a part of our regular business processes vs. a once per year disruptive event. Doing so could be a helpful step forward in improving our ability to manage investment, shift resources in response to market conditions, and improve alignment within marketing and with the rest of the organization. Based upon interviews with marketing leaders in the technology industry and findings from IDC's recent Marketing Operations Board meeting, I'd like to offer the following "food for thought": 1. Staffing : Do you have an individual or team who's accountable for developing, executing and governing your planning process? The marketing operations function can provide the foundation and discipline for a well-orchestrated and managed planning process. Although this

2009 Guidance for CMOs. . .

When budgets are on the cutting board, the marketing function often has to shoulder more than its fair share of the pain. The cuts of 2008 and 2009 will be no exception. In IDC's most recent budget survey, closed in September 2008, actual 2008 spend increase will be just 3.5%, a reduction from the 4% predicted earlier this year. In addition to the short term budget cuts, the pressures of the current downturn will usher in a period of more sweeping marketing organization change. In my five years as a CMO Advisory analyst at IDC, I have never observed so much management analysis regarding potential marketing-organization change. Here are some things to think about to help you to survive and thrive in 2009: Transformation Starts at the Top. Many tech marketing organizations have far too many silos and lack alignment. For these companies, there is too much independent resource and spending at corporate and, in some cases, in the business units; and not enough spending in the field,

Rise of the Campaign Manager Role

Even the most successful technology firms continue to struggle with consistent and effective execution of their campaigns and related go-to-market strategies, unable to improve their alignment with marketing or the organization as a whole. The campaign management function provides the opportunity to solve the foremost problem of tech marketing today: that of the declining return on marketing investment that results from executing marketing mix elements in separate and disintegrated streams. Tech marketing departments that have not structured for this role yet should do so. Here is some key guidance and insight based upon my recent interviews with marketing leaders in the technology industry as well as findings from IDC's recent Marketing Operations Board meeting with 33 marketing professionals: Campaign managers provide the missing link between the business units, marketing shared services and regional marketing. At Quest Software, campaign management serves as the liaison between

Been busy and P4P

Its been a long time since I posted. Much has been happening in healthcare, but frankly, family has been at the forefront of my life. My daughter plays fast-pitch travel softball, so know you know the rest of the story. Weekend tourney's, lots of practices and games. No national bids this year but it was a lot of fun. Try-outs last weekend for 12U, start again and she's playing fall ball. Left-hander, pitches and plays first base and outfield. Pretty good from Dad's point of view.... Now back to the issues.... P4P, Patient Satisfaction and my read on what you need to do Mr. Hospital CEO...... Attempts at payment system reform to stem rising healthcare costs by controlling access and utilization through various insurance programs and market based reforms- PPOs, HMOs, MSAs and HSAs to name a few, have meet with limited success. With projected healthcare spending to potentially exceed $4.1 trillion by 2016 [1] , Pay-for-Performance (P4P) represents a potential mechanism to r

Common Attributes of Today's Leading Tech CMOs

Each year IDC completes a rigorous study of technology marketers' efficiency of their marketing organization. This includes over 100 of the leading tech. firms, representing over $400 B in revenue. To help separate the "leaders" from the "laggards", I've developed a Marketing Performance Matrix (2x2 matrix) to stratify marketing leaders and laggards. Each participating company is located on the Matrix as a function of the efficiency of its organizations' operations and the effectiveness of its execution. However, the numbers are only part of the analysis. We also interview the CMOs at several companies within the leadership quadrant. Here's a bit of what we've learned from these market leaders: Gain the trust of your CEO and CFO. Nothing gains the C-level team’s trust of marketing more than demonstrating fiscal management responsibilities and receiving high praise from the sales organization. Nortel’s executive team was extremely impressed with t

Stop Doing "More with Less"!

For several years now I've heard the adage that marketers need to "do more with less". That is, during the "Internet boom" technology marketers enjoyed the "excesses of marketing investment", resulting in the luxury of having a sufficient number of people and significant backing for program investment; while today, as a result of significant budget cuts and reorganizations, we feel the need to maintain the same number (or more) of programs and campaigns with fewer people to support them. Well, I think that we need to stop doing "more with less". That is, aim for quality and impact from a fewer number of marketing campaigns, programs and activities. Sun demonstrated this discipline in 2007. Sun's marketing leadership team has been driving the marketing organization to develop fewer but more effective go-to-market campaigns; reducing the number of worldwide campaigns from over 75 in the past ( pre 2007), to no more than six-to-ten campaign

Have we made any progress in marketing & sales alignment?

Over the past five years that I've been speaking with CMOs as part of my work here at IDC, sales alignment continues as one of the top priorities on every CMO’s to-do list. The increasing maturity of the technology sector accompanied by significant consolidation will only increase the importance of marketing and sales working in unison as part of the customer creation process. In a recent study, we asked marketing and sales folks to rate marketing’s effectiveness at optimizing sales’ worldwide efficiency and effectiveness (1 = not effective, 100 = very effective). Marketing executives rated marketing’s contribution to sales higher than the ratings provided by sales executives: 62 versus 57, respectively. The key message here is not that marketing gave itself a higher grade but that, more importantly, both scores remain low relative to the importance of this alignment to the success of the organization; and with an average of 15% of revenue, or more, being invested in sales and mark

An Industry-Proven Framework for Managing Marketing's Investment

Given the economic backdrop of 2008, there are more good reasons than ever for sales and marketing executives to engage in a deep scrutiny of their costs. Many organizations have made good progress on cost control, but there is much to be done; and our IDC CMO Advisory research continues to identify big pockets of wasteful spending in these functions. To help technology marketers better manage their investments, we have just completed our second edition of the sales, marketing, and market intelligence (MI) taxonomy. (email me at mgerard@idc.com for a free copy of this extensive marketing investment framework) This expanded taxonomy includes several new line items that need greater "illumination" of spending and staffing, so that executives can make decisions about their investments. These areas include: Digital Marketing. Growth in this area continues to outpace other marketing areas, and in many cases takes funds from these other areas. (e.g., more traditional advertising)

Universal Health Insurance Coverage

As the Democratic primaries come to a merciful end, focus will shift to the November general election. The topic that waxes and wanes depending on which voting group the contestants are reaching for is the rekindled discussion on national health insurance. Clearly, as time and time again we are reminded, the healthcare system is in crisis and something must be done. No argument there. The question is fixed by whom and how much is this going to cost? Will the American public be willing to see taxes rise to support a universal health system? Will the insurance companies willingly give up billions of dollars under a one-payer system? Will the healthcare providers see this as a the savior of their way of life? Who has the ability to bring all of the groups together, consumers, doctors, hospitals, nurses, insurance companies, government, employers, states, etc.? Any meaningful reform will need to be accomplished in year two and three of any new administration. Should anyone consider that re

Is MPM 3.0 Even on Your Radar? (Marketing Performance Measurement)

Marketers in the technology sector have made significant strides in developing and deploying their marketing performance measurement(MPM) strategies. Most have moved beyond the unrealistic quest to establish the perfect return on investment (ROI) metric, and have developed a solid marketing operations area that focuses on maintaining a set of pragmatic marketing performance objectives and metrics. Even so, many companies remain behind the MPM development curve, with the economic, marketplace, and corporate pressures continuing to grow. Where are the best practice leaders today (i.e., MPM 2.0), and what does their next generation MPM process look like? Here's a quick look at the state of the industry today for MPM based upon a recent study by IDC's CMO Advisory Service: Marketing Operations is "leading the charge" to improve the group's measurement process and drive analytical rigor across the organization in addition to the more familiar art of marketing. (refer t

Only Sixty-Eight Percent Satisfied?

Or as the Rolling Stones put it, I can't get no... satisfaction. My very second blog last year was on patient satisfaction. Well, I said it then and I will say it again, its more than the hotel services. Its not entertainment so Disney doesn't work well in serious life and death situations. Its about understanding and creating a culture of satisfaction which most healthcare professionals and organizations are clueless about. Clueless organizationally and clueless from a leadership perspective. So in the interest if time, here is the voice from the wilderness again...... The Patient Satisfaction Imperative Ever wonder why in the healthcare industry that satisfaction is sometimes so hard to come by? That is not to say that every hospital or health system has a satisfaction or service problem. There are many exemplary examples of service focused healthcare organizations that day-in and day-out deliver high levels of patient and physician satisfaction. Yet, in an industry where we

Closings, Mergers and New Services

SSM Healthcare SSM Healthcare in St. Louis, MO, announced that they will be closing St. Francis Hospital and Medical Center in Blue Island, Illinois after years of sustaining losses for that hospital in eight figure range annually. In the press reports SSM could not even give it way. They have taken some hits in the media, but decision like this are never taken lightly. I know some of the senior leadership at SSM and I can assure you that they took this decision with the greatest of care and deliberation. Mission has always come first. And I do agree that SSM has to consider the viability of the system as a whole to carry out their mission of service and care to all. Sometimes one part must be sacrificed so that the mission can continue on for the greater good. What is missed in all of this is question: where were the other Catholic systems in the Chicago area, Provena, Resurrection, Loyola, and St. James, Palos Community (yes they are Catholic but keep it a secret), Mercy and St. Jose

Highlights from IDC's Sales & Mktg. Effectiveness Summit

IDC just completed its 4 th annual Sales & Mktg . Effectiveness Summit. This was a full day event in NYC that included a great line-up of executive speakers from Careerbuilder , Akamai , Salesforce .com, ESPN, American Express and others. Although this certainly won't do the event justice, here are a couple of the "gold nuggets" that I took away from the event: Sales may be the "top scorer" in your company, but marketing most likely has the most "assists". [Mary Delaney, Chief Sales Officer, Careerbuilder .com] Do your sales & marketing teams appreciate the contribution of each group as well as the need to work as a team? "Candor", not "Cancer". [Delaney] That is, honest feedback can either be brought to the right person/team so that something can be done about it - Candor; or it can spread to every other individual in the organization resulting in lack of action and a reduction in efficiency and moral-Cancer. (I believe M

What Where They Thinking?

The last couple of weeks have been interesting in the world of hospital marketing. It was one of those what were they thinking moments. Let me set the stage. A new hospital opens in Bolingbrook, Illinois. It has been under construction for two years and is the first new greenfield hospital in 25 years. Looks like a major PR opportunity but no. The marketing consisted of some billboards without any mention of location, one full page advertisement, and one direct mail piece. Most of which happened during that two years before the hospital opens. Now that's useful. So what do they do, open the hospital, a couple of newspaper stories and a billboard way off the expressway and a radio commercial. Build it and they will come mentality. Guess what? People are not coming. So for the last couple of weeks high on top of the hospital, the Adventist's and yes its Adventist Bolingbrook Hospital puts a giant black sign with white letters saying "NOW OPEN". Oh, I bet that will draw

New Beginnings in Healthcare

Its been a short while since I have posted. The main reason being the wealth of new knowledge and lessons learned at the American College of Healthcare Executives, 75th Annual Congress on Healthcare Leadership. The theme of this years Congress was Redefining Healthcare. Much to ponder from new insights and understandings. An under-current of thought at the Congress was the sense that healthcare is undergoing some fundamental restructuring. No, not the kind that really addresses the underlying systemic process and care issues, not the "medicalized" social issues like the estimated 47 million men, women and children without health insurance, nor the crisis in Medicare solvency. The kind of change that over a generation will have a basic and fundamental shift based on the transparency of quality and data reporting. Where we were Healthcare in general for far too long, has been mired in secrecy and arrogance. No data releases, no voluntary reporting of adverse events, little effo

2008 Outlook for Tech. Mktg. Investment

Well, we've just completed our 6th annual technology marketing barometer study, and I have some good news and bad news to share with you. Let's get the bad news over with first. As marketers, we have our challenges cut out for us in 2008: Challenging economic environment in 2008: An unsteady marketplace is introducing significant aversion to risk by tech executives. Drive for overall marketing efficiency and effectiveness will continue with mounting budget pressure and market competitiveness. Market and marketing channels will continue to proliferate, creating challenges and opportunities. Tech marketing budgets will increase by 4% for the full year 2008. Although this is an increase, it is the lowest that IDC has forecast in the past four years and portends further pressure on the marketing function for cost control and productivity increases. Now a bit of good news. For the companies that have been diligent in improving their marketing operations and effectiveness during th

Accountability, Responsibility and Change

$1.5 Trillion and Counting A couple of weeks ago, Health Affairs reported that healthcare spending increased by $750 billion to $1.5 trillion. It was also predicted that by 2017 healthcare spending would increase to $4 trillion. Okay, can anybody without giggling too hard really admit that they can comprehend and understand exactly what $4 trillion means? Monopoly money... it has no meaning except for those that can figure out how to be part of that spending. Hospitals, health systems, medical device manufacturers, pharma, physicians, associations etc., all looking at what piece of the pie is theirs. The economist's know what that means. So what else are we to spend our money on? Well, that kind of spending is unsustainable and will force concrete action to fix a broken healthcare system. Just what that will look like is any ones guess at this time. Don't fix it and we will have rationing, long waits and a national healthcare system where no one is cared for. And a dollar th

An Inconvenient Truth for Marketers: The Role and Value of Information

An inconvenient truth for IT vendors: The factors least considered by vendors in go-to-market programs are those most valued by technology buyers: IT vendors focus on the ROI of their marketing programs and their sales programs. They might also talk about the ROI a buyer can expect to achieve with their product (i.e., product ROI). Few sufficiently consider the ROI a buyer expects to achieve by spending time with a vendor’s information and people -- the relationship ROI. Technology marketers build marketing mix plans based on format (e.g., advertisement versus conference versus blog) and communications channel (e.g., TV versus Web versus print). But, in making IT purchase decisions, corporate buyers value content relevance and credibility over format and channel. When it comes to mobilizing a sales force, most tech vendors subscribe to one sales methodology or another and institute a sequence of selling stages. Meanwhile, the buying process is far from standard. According to a recent

HIPAA and the Press

The Chicago Bears, Brian Urlacher and HIPAA No, this is not a joke. It has been most interesting reading sports columnists and broadcasters lament to a great common chorus that no one knows about the extent of Urlacher’s injury and his neck surgery. The Bears aren’t talking, the doctors aren’t talking and nobody else is talking. It is as if some serious plot has developed to keep the real story from the media. Hogwash….. As a 20 year healthcare executive life changed a few years ago when HIPAA became the law of the land. Simply put, if an individual does not want anything released about their medical condition, treatment, so forth and so on, that was that. No press leaks, no briefings from the Bears, no info from the hospital, doctor’s or anybody else. The federal government has clamped down really hard on the privacy issue and this falls into that. Urlacher is the only person, who can make the decision on who does or does not receive any information about his medical condition or trea

Competiton in healthcare? Now that's an oxymoron.

A most interesting column appeared in the Tuesday, January 29, 2008 Wall Street Journal "The GOPs Prescription for Health Care", by Grace-Marie Turner. A good read and provides valuable information. Ms. Turner is the president of the Galen Institute and editor of "Empowering Health Care Consumers through Tax Reform", University of Michigan Press, 1999. But and this is a big but, the premise of empowering consumers is that competition in the marketplace will fix the healthcare ills of the US faces some serious questions. On the face of it potentially true. In most markets competition drives down cost, improves quality and diversity of choice. Healthcare does not operate as a true free-market competitive environment. It is more complex than the private health insurance, workplace, choice debate. The fundamental problem with the healthcare landscape is that until the very basics of regulatory reform are made to impact and make it a true competitive environment, all the

The more things change, the more they stay the same

Economy With the economy nearing recession it is a safe bet all the talk about healthcare reform and national health insurance will slow down. People want jobs and economic security. That debate is beginning to overshadow everything. Politicians are like a 3 year old child's short attention span and they focus on the flavor of the day. Until someone comes up with that private government combo plan for reform, its dead in the water. Look for incremental change that tinkers around the edges but fails to address underlying systemic issue. If real change is going to come it will have to come from employers large and small. As the old saying goes....Money talks and ........, well you know the rest. Hospital margins We all know that hospital margins for the most part have been showing signs of improvement the last couple of years. With the growth in spending in Medicare and Medicaid, and CMS realizing its out of control faster than they even thought, reductions are in the works. That wil

B-to-B Online and Interactive Marketing - Cutting Through the Hype

Online advertising, social networking, search engine marketing (SEM), Internet broadcasting, wikis, Web 2.0 … what do these terms mean for your marketing strategy? How do you harness the power of this new medium without straying from your current strategy? The new and constantly changing digital marketplace represents great opportunity for your marketing organization and your company; however, many tech marketers are off to some operational false starts in this area. I recently completed a study of the online and interactive marketing area and related processes of 15+ tech marketing leaders. This included in-depth interviews with marketers as well as spending a full day with ~20 leading tech marketers discussing these issues as part of an IDC Marketing Operations Board meeting. Here is some key insight and guidance based upon this research: Consolidate online and interactive marketing efforts from a process, infrastructure, and governance perspective, yet continue collaborating with bu

Quick Hits and Other Notes

Happy New Year everyone. Jan, 1, 2008 and another year starts anew. Check out the poll on Certificate of Need. Quality Ads Been seeing a lot of hospital quality ads lately. HealthGrade ratings are out touting we are the best. How many people out there really understand that hospitals and health systems have to pay a lot of money to use the HealthGrade logo and rankings? Not many I expect. Five stars, four stars etc, kind of like choosing from a menu at a restaurant. Wish my doctor had admitting privileges at all those hospitals, then we could pick and choose where to go. Like that is going to happen. I'd rather have info about medication and surgical error rate and malpractice suit results, physician qualifications and satisfaction rates. Hospital Ad Wars Always fun to watch hospital dueling in the marketplace with ads. Especially in a two hospital town. Lots of ad dollars and the only ones that profit are the local papers and radio stations. The ads are silly, cover nothing, have