Putting Points on the Board in Consumer Service

Kaufman Hall is a management consultant and performance management software provider to the healthcare industry. Paul

Crnkovich leads the firm's Consumer Strategy Practice which advises hospitals and health systems on consumer-centric

delivery strategies, pricing strategies, enterprise strategic planning, and market development and growth strategies. Mr. Crnkovich has more than 25 years of consulting and marketing experience in the consumer products and healthcare

industries. He received his M.B.A. from Harvard Business School and his B.A. in Government from Harvard University.

PC: The good news is that, according to our recent survey, healthcare organizations are placing a high priority on many

areas that could make the healthcare experience better for consumers. Executives understand the need to fix the front door—for example, to have a strong web presence and to develop diverse physical access points and telehealth options.

Executives also are focused on solving persistent problems associated with the consumer experience, particularly by using online tools for scheduling, provider communication, and bill paying. Executives are also starting to pay more attention to pricing strategy for certain services. Overall, we're glad to see this level of interest, because access, experience, and price are vulnerabilities for traditional organizations—and areas that nontraditional competitors are targeting.

That's the good news. The not-so-good news is that organizations still have a long way to go to develop the capabilities they need in these areas.

PC: I'd suggest they think of this in two ways. One is that a consumer orientation needs to be integrated into all aspects of strategic-financial planning—from gathering market intelligence to capital planning. Consumer-related metrics should be key to the executive dashboard. Healthcare providers need to think in terms of building long-term relationships with consumers, not simply growing the number of healthcare encounters. The ability to grow will depend on one's ability to both attract and retain consumers.

Second, organizations should look for specific consumer-related initiatives that they can focus on and really master. These may relate to something that enhances access, such as virtual visits, or to something that relieves a nagging problem, such as extending hours for primary care. Those initiatives should be chosen based on factors such as number of consumers affected, cost and revenue implications, and degree of need.

In this way, organizations are both laying the foundation for a broad-based consumer orientation and putting points on the board with some early successes.

PC: I believe the biggest barrier is time. With revenue pressure, cost pressure, and competitive pressure, healthcare leaders have a list priorities so intense it can seem difficult to add one more. However, we view meeting consumer expectations not as a problem to be solved or another item on the priority list, but as intrinsic to everything a healthcare organization does. A deep understanding of consumer expectations should inform strategic planning, performance improvement, and growth opportunities. Consumers who are given better access, a better experience, and an acceptable price are more likely to be engaged in their care and loyal over time. This level of loyalty will be key to an organization's continued competitive strength, and strategic and operational success.

PC: My background is mostly in consumer product strategy. I worked with companies such as Kraft Foods and Procter

& Gamble to develop consumer insights and apply them to creating strong and meaningful brands. As I started to do more work in healthcare, I saw a tremendous opportunity in a field that affects the entire population in a deeply personal way. Traditionally, healthcare has had more of a paternalistic role toward the people it serves. However, socioeconomic forces create a serious need for hospitals and health systems to think differently about consumers—to understand the different expectations of different types of people and to tailor services that will create even stronger consumer loyalty. I am thrilled to bring my consumer product strategy background to bear on such an important challenge for this country.

To learn more about Kaufman Hall & Associates, please visit kaufmanhall.com/consumer.