Advanced Strategic Planning in Home Health Care
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1 Advanced Strategic Planning in Home Health Care With Stephen C. Tweed, CSP Chairman & CEO Leading Home Care a Tweed Jeffries Company This handout is intended for exclusive use by authorized viewers who have purchased this seminar from the Home Care Information Network Leading Home Care a Tweed Jeffries company P O Box 24475, Louisville, KY * * Stephen@leadinghomecare.com
2 Advanced Strategic Planning in Home Health Care As a leader in home health care, one of your primary responsibilities is to get ready for the future. In this seminar, Stephen Tweed discusses the importance of developing a strategic plan to grow your home health care business. Stephen presents a model for strategic thinking and reviews major forces and trends that are shaping the future of healthcare in America. He describes a strategic planning process and then walks viewers through the process of developing plans to grow your business. Purpose: To share with you a model of Strategic Thinking in Home Health Care, and help you create a Strategic Planning process and action plan that will help you grow your business and get ready for the future. Objectives: As a result of this program, participants will be able to Present a Model of Strategic Thinking. Discuss the Forces and Trends shaping the future of Home Care. Describe a process for Strategic Planning in Home Care. Develop specific action plans to grow your business and get ready for the future Content: The Four Fundamental Factors that will Affect your Describe and Assess your Current Reality Five Forces Affecting your Five Trends that are Leading the Way Measuring your Success Model of Strategic Thinking 2006 Leading Home Care a Tweed Jeffries company P O Box 24475, Louisville, KY * * Stephen@leadinghomecare.com 1
3 Advanced Strategic Planning in Home Health Care with Stephen C. Tweed, CSP CEO Leading Home Care a Tweed Jeffries company Louisville, KY The four fundamental factors that will determine your future The Forces and Trends shaping the future of healthcare in America Your desired future Competitive Advantage Leadership (c) 2006 Leading Home Care 2
4 Objectives Present a Model of Strategic Thinking Discuss the Forces and Trends shaping the future of home care Describe a process for Strategic Planning in Home Care Develop specific action plans to grow your business and get ready for the future Download Your Handouts Go to lower left hand corner of your screen. Click on the Details button. Click on Collateral Materials link. A PDF file will open. Print the handout and make copies for everyone who will be viewing this program. A Model of Strategic Refocusing Now 2001 Stephen C. Tweed (c) 2006 Leading Home Care 3
5 Now A Model of Strategic Refocusing Your Current Reality 2001 Stephen C. Tweed Three Ways to Describe the Current Reality 1. Intuitively 2. Anecdotally 3. Quantitatively Assessing Your Current Reality Intuitive Check How do you feel about how things are going? What frustrates you? What are you most proud of? What keeps you awake at night? If you could wave your magic wand, what three things would you fix? (c) 2006 Leading Home Care 4
6 Assessing Your Current Reality Anecdotal Check What are the greatest accomplishments of the past year? What are people saying about us? What are my staff members concerned about? What are they saying? What is the level of staff morale? Storyboarding Involve your team members Make ideas visible Stimulate creative thinking Focus critical thinking Capture the results Summarize your plan Major Accomplishments Select the reporter recorder for your group. Brainstorm a list of your major accomplishments in the past 12 months. Select the Top Five most significant accomplishments. Be prepared to report to the full group. (c) 2006 Leading Home Care 5
7 Assessing Your Current Reality Data Check What are the key quantitative indicators of our success? What do these numbers show us about our performance? Which of our goals have we achieved? Which of our goals have we missed? What are our customer satisfaction ratings? What is our financial performance? Payor Mix Medicare 49% Medicaid 25% Self-pay 2% Commercial Ins. 24% Revenue Growth $14,000,000 $12,000,000 $12,233,672 $10,000,000 $8,692,183 $9,597,917 $8,000,000 $6,000,000 $5,765,360 $4,882,835 $4,000,000 $2,000,000 $ (c) 2006 Leading Home Care 6
8 Profits $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 $435,404 $382,503 $352,940 $188,705 $481, (c) 2006 Leading Home Care 7
9 Current Reality What other observations would you make about our Current Reality? Now A Model of Strategic Refocusing Strategic Profile 2001 Stephen C. Tweed (c) 2006 Leading Home Care 8
10 Now A Model of Strategic Refocusing Forces Trends Strategic Profile 2001 Stephen C. Tweed A Model of Strategic Refocusing Forces: Those outside pressures that cause change Trends: Those patterns of change that are caused by the forces Five Forces Affecting Your List your Top Five here Stephen s Top Five (c) 2006 Leading Home Care 9
11 Five Forces Affecting Your 1. Economic Pressures 2. Demographic Changes 3. Consumer Choice 4. Technology 5. Political Change Economic Pressures What are the major economic pressures you are seeing in your marketplace? Data points and examples that show the patterns of change which we can identify as a trend. Watching Trendicators over time enables you to spot trends and anticipate the most likely patterns of change. Our purpose is not to predict the future but to prepare our organizations for the changes that are likely to occur. (c) 2006 Leading Home Care 10
12 Most Important Benefits to Employees Medical Insurance Paid Vacation & Holidays Employer paid pension Retirement savings plan Prescription drug card Dental insurance Ability to choose benefits Sick Leave and short-term disability Long-term disability insurance Preventive/wellness coverage Source: Aon Consulting Survey of 1800 Americans Demographic Change How will changing demographics affect the future of home care? Population Growth The U. S. population is growing about 1% annually. This adds some 2.5 million people every year -- equivalent to a new city the size of San Diego. (c) 2006 Leading Home Care 11
13 Population Growth by State The U.S. population is undergoing at least two major shifts: a significant change in its geographic distribution and a similarly important change in ethnic composition. Aging Population The fastest growing segment of our population is the over-85 group. Consumer Choice What are consumers of home care wanting and expecting? (c) 2006 Leading Home Care 12
14 Wealthy Baby Boomers By 2030, the year that the last of the Boomers reaches age 65, the number of Americans age 65+ will reach 71.5 million, double the 35.6 million today. They will also control 40% of disposable income and 77% of private investments. Source: Technology Trends Getting Smaller Getting Cheaper Getting Easier to Use Disruptive Technologies that will change your world Rational drug design Advances in imaging Minimally invasive surgery Genetic mapping and therapy Vaccines Artificial blood Xenotransplantation (c) 2006 Leading Home Care 13
15 Performance Accelerating Technologies Taking Healthcare into the Home Telehealth Point-of-care palm top computing Digital imaging Micro diagnostics Wireless connectivity Web-based data access Voice recognition 7 Political Trends? What s happening politically that will affect the future of healthcare? Red states vs. Blue states (c) 2006 Leading Home Care 14
16 Five Trends that are Leading the Way 1. From consolidated corporations to community based delivery systems 2. From acute care to post-acute and long term care (c) 2006 Leading Home Care 15
17 3. From institutions to home and community based care 4. From payors in control to consumers in control 5. From high-tech to cyber-tech in medicine and information (c) 2006 Leading Home Care 16
18 A Model of Strategic Refocusing Now Forces Trends Strategic Profile Your Desired Mission Vision Values 2001 Stephen C. Tweed Your Desired Mission The Why we exist... that brings meaning to our work. Vision A clear mental picture of a possible and desirable future State... the Dream! Values The core beliefs that guide your thoughts and actions Mission Purpose Plus Action What we do and why we do it A one sentence description of your purpose for being (c) 2006 Leading Home Care 17
19 Vision A clear mental picture of a possible and desirable future A consciously created fantasy of what we aspire to be If you could wave your magic wand, what would your company look like? Values What are the core beliefs that guide your thoughts and actions? What is your Guiding Philosophy? How do your values guide your business decisions? How do your values guide your staffing selections? Code of Conduct Turn your Values into a Code of Conduct for all of your team members. List of Core Values What does it look like when we live that value? What behavior is expected? What behavior is not acceptable? (c) 2006 Leading Home Care 18
20 A Model of Strategic Refocusing Now Forces Trends Strategic Profile Your Desired Mission Vision Values Competitive Advantage 2001 Stephen C. Tweed Competitive Advantage To be successful in business, you must be unique. You must be so different that if people want what you have, they must come to you to get it. Walt Disney What is your Unique Factor? Seven Sources of Competitive Advantage in Home Care Perceived Quality of Care Innovative Applications of Technology Narrow Market Focus Exceptional Customer Service Ease of Access Relationships Low Price / Low Cost (c) 2006 Leading Home Care 19
21 Communicating Your Competitive Advantage Internal communication to all team members Crafting your Marketing Message Effective MAP Attack: Marketing, Advertising & Promotion Measure Competitive Advantage through Patient & Referral Source Satisfaction Now A Model of Strategic Refocusing Forces Trends Strategic Profile Your Desired Mission Vision Values Measurement Competitive Advantage 2001 Stephen C. Tweed Measure Your Success (c) 2006 Leading Home Care 20
22 A Model of Strategic Refocusing Now Strategic Profile Forces Leadership Your Desired Mission Vision Values Trends Measurement Competitive Advantage 2001 Stephen C. Tweed A Model of Strategic Refocusing Now Strategic Profile Forces Leadership Focus Your Desired Mission Vision Values Trends Measurement Competitive Advantage 2001 Stephen C. Tweed (c) 2006 Leading Home Care 21
23 A Model of Strategic Refocusing Now Strategic Profile Forces Leadership Focus Action Your Desired Mission Vision Values Trends Measurement Competitive Advantage 2001 Stephen C. Tweed Seven Steps from Success to Significance 1. Objectively assess your current reality 2. Define your desired future 3. Craft your uniqueness 4. Rev up your economic engine 5. Create a culture of accomplishment 6. Develop and implement your Action Plan 7. Measure your success with undisputed facts Template for Strategic Plan Current Reality of Your Agency Forces & Trends in your Marketplace Mission, Vision, Values Competitive Advantage Goals and Action Steps Strategic Scorecard (c) 2006 Leading Home Care 22
24 Strategic Goals 5 7 key strategic outcomes we expect to achieve as a result of this planning process. Writing SMART Goals Specific Measurable Achievable Relevant Time-based Goal: Strategic Action Plan Measurement Standard: Strategic Actions Minimum of 7 action steps Who to do Target Date Resources / Comments (c) 2006 Leading Home Care 23
25 An Effective Action Step is Assign-able Do-able Cost-able Setting Up Your Strategic Plan Select 5 7 of your Critical Measures of Success Set Stretch Goals Develop at least 7 action steps for each Goal Implement your action steps Capture results monthly and post to your Scorecard Share the results with your team and adjust your action plan Celebrate your successes Reward your team Questions?????? Your Questions to Stephen@leadinghomecare.com (c) 2006 Leading Home Care 24
26 Register for your FREE Subscription to the bi-weekly Electronic Newsletter Keepers List the three things from this program that have the most take-home value for you What are you going to do with these keepers? (c) 2006 Leading Home Care 25
27 Stephen C. Tweed, CSP Home Care Strategist Speaker * Author * Consultant Bringing a unique perspective to home care strategy & leadership A nationally known healthcare and business strategist, professional speaker, author and consultant, Stephen Tweed works with home care organizations that want to grow, and with home care leaders who want to get ready for the future. Stephen is Chairman and CEO of Leading Home Care... a Tweed Jeffries company. A much sought after professional speaker, Mr. Tweed presents keynotes and breakout sessions at association conventions, and he speaks and leads board and management retreats for healthcare organizations. He combines a powerful speaking style, warm humor, and practical take-home examples that leave audiences asking for more. He has been awarded the prestigious designation of CSP Certified Speaking Professional by the National Speakers Association. Mr. Tweed is the author of STRATEGIC FOCUS: A Gameplan for Developing Competitive Advantage, and co-author of five books specifically written for the home care industry. He is a frequent contributing editor to leading home care periodicals. In addition to his roles of strategist, speaker, author, and consultant, Stephen Tweed wears two more healthcare hats board member and consumer. He has served on the Boards of Directors of three home care companies, and as the Interim President and CEO of a $25 million, 400 employee home care company. He is also the father of a 36 year old son who is physically disabled, lives in a wheelchair and uses the service of private duty home health care on a daily basis. Jason now works closely with his father as Director of Business Development at Leading Home Care... a Tweed Jeffries company Leading Home Care a Tweed Jeffries company P O Box 24475, Louisville, KY * * Stephen@leadinghomecare.com 26
28 Other Resources to Grow Your Home Health Care Business Get Ready, Get Set, GO GO GO!: A Marketing Primer for Home Health Care Professionals Edited. Various contributing authors A 256 page soft cover book with a chapter by Stephen Tweed on Developing Your Strategic Marketing Plan. Strategic Staffing: Finding and Keeping the Employees You Need in Home Care By Stephen Tweed and Catherine Fyock A 116 page E-manual which you can download from the internet. It provides a detailed process for recruiting and retaining critical home care staff members. Strategic Marketing: The Top Ten Techniques of Highly Effective Home Care Marketers By Stephen Tweed and Jason Tweed A 90 page E-manual which you can download from the internet. It provides the detailed results of the Leading Home Care 2004 Marketing Study. Building Relationships with Physicians With Stephen Tweed and M. Tray Dunaway, MD, FACS A 4-CD audio learning program recorded during live teleseminars with Dr. Dunaway. Subscribe to the FREE Electronic newsletter, Stephen Tweed s Leading Home Care Report! Leading Home Care a Tweed Jeffries company P O Box 24475, Louisville, KY * * Stephen@leadinghomecare.com 27
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