NEIL JOHNSTON Management Consultant Perspective |
When
Rape is Imminent
|
One of
the most obvious attitudes, that I picked up after running a group
of articles relating to Woolworths last month (follow
this link), is the feeling of inevitability expressed by a
large number of pharmacists. |
If
Pharmacy was a well-led business/profession, there would be no underlying
concerns when a Woolworths comes on to the scene, because there
would be that inner confidence of individuals, and the cohesiveness
around leadership, that would dissipate concerns and develop genuine
strategies to cope with all levels of competition. This does not seem to exist. Instead, we
have the national leader of the Pharmacy Guild of Australia (PGA)
going to print in the Australian Journal of Pharmacy on two occasions--one
to give spurious arguments against a corporate pharmacy model,
the other to publicly admit defeat in preliminary negotiations
with Woolworths, to try and head off their involvement in pharmacy. Since then,
we have seen some party-political leaders making statements of
support for pharmacy (The Nationals federally and state Labor
in NSW) and possibly others I am unaware of. It is this image of a weak PGA (despite its lobbying successes) that will encourage Roger Corbett to "go for broke"! Reinforcing
these feelings of inevitability are the range of "bitter-sweet"
comments posted on AuspharmList by individual pharmacists, ranging
from the exasperated to the resigned. Do they have the capacity? Judging the current performance, I doubt it! Does this have to be? Hell no! It would not
take too much imagination to set up a task force that draws from
a wide range of pharmacist "thinkers". The terms
of reference of such a task force could also be broadened to include
rationalisation of the various pharmacy bodies. Remember too that the PGA have a conflict of interest with any corporate model, in fact any model outside of the "cottage garden" variety. These are the models that will not likely be members of the PGA, simply because services and activities would not "fit" with pharmacies strong enough to stand on their own two feet. That is, unless the PGA changed its delivery of service structure. In a very
real sense, the PGA is between a rock and a hard place. From the correspondence
I am receiving, I know that Woolworths have been in discussion
with pharmacy wholesalers, that Woolworths can deliver traditional
health services at a cheaper price (because of its infrastructure
and supply chain reforms-see the research of Con Berbatis in this
edition) and that it has more than enough interested pharmacists
to launch its program successfully. Also from
this point onwards, any serious pharmacists will have an extra
cause for concern, for they now face the prospect of losing control
over a substantial component of the direction of their business/professional
activity. "I
am watching all the pharmacist's discussions on Auspharmalist
and it is very interesting how Woolies want to get hold of pharmacy
ownership in Australia, hopefully the Guild can stop them. The New Clicks
organisation mentioned above, is of course, the Priceline organisation
here in Australia. Woolworths is adopting a similar strategy, the only differences being cosmetic in nature (details in the October edition). So I would
now see the challenge of developing Plan B back with John Bronger
and the PGA, because of the central and pivotal role they play
in community pharmacy. The "grass roots" had better start stirring, and an insistence of the development of a task force would seem to be a good starting point. Don't let Woolworths (or anyone else) in, don't allow open ownership and control, but do develop equivalent corporate structures that will deliver professional health care at the lowest possible prices. That has to be the message! |