The pursuit of innovation is a process that pharmacists seem to have
forgotten, if indeed, they ever embraced it.
As we move forward in the new millennium and seek a competitive advantage
in the marketplace, we are finding it unsustainable to develop a competitive
advantage in quality, cost, or speed of service.
This is because the gap between our rivals in quality, cost and speed
has already closed, or is rapidly closing.
And by rivals, I don't mean just other pharmacists.
I mean every other organisation that competes with pharmacy services,
in niche areas, or across the board, and can include major retailers,
health food stores, naturopaths, other health professionals (including
nurses and doctors), Internet pharmacies, integrated medical corporations-the
list is ever widening.
For the
consumer, the bulk of these entities appear indistinguishable in quality,
cost and speed, for their specific need, and they will naturally choose
the service that offers them the very best choice.
It is only the "stand out" entity that will attract.
So, the
only sustainable organisation for the future is the one that relies
on innovation as its point of difference, evoking sensory and emotional
responses.
This is described as the "Ahhh" factor, which is that "look
at this" experience that dazzles and captures a customer/patient's
attention to win ultimate loyalty.
I once
read a very interesting and well-known book about the history of pharmacy
in Australia, where it was stated that in the roughly 200 plus years
of development and growth, no single major initiative in pharmacy had
ever occurred from within pharmacy ranks. It had always been foisted
on pharmacy by governments, the medical profession, or other external
organisations.
It was these external influences that shaped pharmacy of today.
Not very inspiring, is it?
And I remember mentally reacting against that image, but with considered
reflection, and an experience acquired from the "school of hard
knocks", I am now in total agreement with that point of view.
Why is it that over the years, we have had umpteen dozen reviews of
pharmacy activities by government agencies, culminating in the Wilkinson
Review of recent times, the CoAG Review etc ?
As they say, we have not learned the lessons of history.
Given the
turmoil that is manifest in the community pharmacy of today, and the
unsustainable workload that is upon us, where is the starting line to
begin a new and sustainable process to ensure survival ?
Mindset
is the starting point.
Forget about what you want, what wholesalers and manufacturers want,
what your staff wants, what governments and official pharmacy organisations
want.
Filter out all the noise created by these "wants".
The only opinion that matters is the opinion of the customer/patient;
the ultimate consumer of your service offerings.
Have you ever asked your existing patient/customer base what it was
that attracted them to your pharmacy, and if they had the opportunity,
what they would like to see changed or added to your offerings?
When you think about it, it is a simple starting point.
What are the needs, lifestyles and the aspirations of your current (and
potential) customers/patients.
What is the secret of having them say "Ahhh" to your most
recent service offering?
Beware of initial consumer responses to your questions.
Initial reaction is not always a good guide to a product or service
being successful, and consumers sometimes have to be led into the process
in a carefully focussed and attentive manner. For example, when the
computer mouse was first invented, most consumers reacted negatively,
preferring to type in commands that they were previously used to doing.
When answering machines were introduced, they were felt to be disrespectful
and impersonal to callers.
And so it may be with the new range of services being rolled out utilising
consultant pharmacists.
There may be a million reasons why these services may not seem to be
needed by our patients.
Just ask your local G.P.
The chances are he/she will trot out a litany of reasons, ranging from
a questioning of your skill base to the mountains of paperwork you are
generating for G.P's.
Do pharmacy patients (Yes, I said pharmacy patients - we do genuinely
have them) need these new pharmacy services?
Well, the only way to find out is to ask patients, trial the services
and continually innovate and focus, until we get a perfect "fit".
The "Ahhh" solution.
And what about the cost?
Well, cost is relative.
If the consumer genuinely desires and needs a service, the cost will
be willingly met directly by the patient, or be subsidised by health
insurers or governments in some way.
The need is the all-important, driving factor.
This is the reason, in my previous articles, I have encouraged pharmacists
to be innovative and not be satisfied with government subsidised services,
but to get out and develop a range of private activity to fill all those
obvious gaps within pharmacy patient need.
There is a term for this approach in the commercial (generally IT) world,
and it is called "expeditionary marketing".
Basically, it is a strategy involving a series of low cost and fast
paced market incursions.
Instead of waiting for the market to reveal itself and unfold the perfect
and financially safe (for a pharmacist) service model, an undeveloped
product is brought to an ill-defined market.
Based only on previous experience, judgments on how to proceed are made.
The model might have to be scrapped entirely if it does not gain acceptance.
Most likely, it will be reconfigured and refined, and sent out for another
foray.
This process is continually repeated, and with each experience (positive
or negative), new insights are gained into what will be the ultimate
"Ahhh-inspiring" model of service.
All the time you will be asking patients, actual or potential, what
they need and like within your model.
The "bulls-eye" must eventually be hit, with practice.
To bring
a new innovation on stream you will have to develop an organisation
that is quick on its feet, so that development and delivery times for
innovative new models of service can be reduced.
This is where the real level of competition exists.
Already, some of our competitors can deliver models of service with
as short a lead time as 30 days, from conception to delivery.
To be able to compete into the future, we will have to get as close
to a "zero lead time" as we can.
To enable this process we have to be up with the best in the Information
Technology stakes, to ensure that we have access to information inputs,
control of overheads (gateway purchasing technologies) and equally fast
access to consumers with our outputs.
These outputs will rely more and more on Web-based systems.
To create
the innovative pharmacy, traditional models of management will have
to be changed. Teams of employees will have to be developed around major
processes within a pharmacy, and be given access to information (traditionally
guarded as being confidential), to enable them to produce a measurable
result
What can be measured can be easily managed.
These workplace teams will need to be empowered to act on their own
research and apply their findings in a decision making process normally
reserved for a hierarchical middle-management structure.
This type of line management is now obsolete.
It is too slow, it is costly, and can be obstructive.
The entire line is replaced with a leader, who will have the capability
of drawing the individual workplace teams into a cohesive unit, will
give credit and value to each unit and will continually provide feedback
between units.
Employees may belong to more than one workplace team, and non-employees
may need to be co-opted at various times, to introduce skills not inherent
within the existing groups. These co-opted people will be consultative-type
persons who will be drafted for a short term, sharply focussed learning
project, and then move out.
As the teams grow in productivity, these co-opted skills may need to
be permanently employed to facilitate innovation and sustain growth.
The whole process is energised by encouraging "out of the box"
thinking in all facets of daily work activity, and from all participants.
One of
the major tasks of a workplace team is to identify activities that are
not running smoothly, or processes that continually present frictions
between employees, or worse, at the customer/patient interface.
In many instances, these problems have been inherent and traditional
within the pharmacy workplace and have just been accepted e.g. the pharmacy
may have the traditional system of borrowing between pharmacies-a scrap
of paper on a bulldog clip, which may eventually be thrown away, because
no one is sure that it has been redeemed by a return product.
Or the system for ordering individual special purchases for customers
continually breaks down because no single person is responsible for
the process. There is no ownership, and customers/patients are continually
being disappointed.
The "Ahhhh" turns to "Ugh!"
Pharmacy is littered with these inefficient and outmoded methods of
conducting a business.
The workplace team must design a system to eradicate these inefficiencies,
which in turn, leads to errors and adverse events. Errors can be life
threatening once they enter the professional area, and they are costly,
because they should not be there in the first place.
They are a constant threat to customer/patient loyalty.
Innovation begins with these small events-the design of a simple system
to eradicate a problem.
From small things, bigger things evolve and it just takes the spark
of leadership to set it aflame.
We used
to think of the marketplace as being a series of "market segments"
and logically began to set about controlling as large a portion of that
segment as possible.
Now there are only "fragments" - tiny "market fragments",
which, if we take a systematic approach to, we can win.
Because these fragments are "bite-sized" they may represent
a consumer need that other competitors have overlooked, or find too
paltry for them to service.
Pick up on this process.
What have you done before that you are no longer doing?
Is there an obvious need that you can service that fits your scale of
operation?
And look at modularity.
Can you build one market fragment in conjunction with another or as
an extension?
Can a service be designed so that a consumer can select their own modules
to suit their particular needs?
A "mix-and-match" approach can be an innovative process in
itself and be an encouragement for your customer/patients to suggest
ideas for future modules.
This can be an ongoing and innovative process once started.
Innovation
is the constant search for the new, the different, the better value-adding
product or service that creates the "Ahhh factor".
For pharmacies that embrace innovation as the primary basis for achieving
a sustainable competitive advantage, it will mean that this pursuit
becomes the quest for knowledge, and for mechanisms to translate knowledge
into customer/patient benefit.
For the organisation itself, something positive begins to happen.
Gradually the old mechanistic ways of thinking about the organisation
give way to newer and better concepts. The organisation itself becomes
a living, learning and growing entity that processes knowledge and interacts
continuously with its environment and its customers/patients.
This type of organisation is different, it is customer/patient sensitive,
it is knowledge creating and it is totally agile.
The flexibility and adaptability generated, creates the ability to thrive
on chaos, uncertainty, unpredictability and continuous change.
It is lean in its use of resources, it services small niche markets
(sometimes as small as a single customer) and it delivers highly customised
services (virtually on the spur of the moment).
Such organisations do exist, but are not very evident in pharmacy.
A pharmacy meeting the above specifications would be a highly sought
after place to work in.
A profession built on the same platform, would be a prestigious one
indeed.
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