Kent Seltman - Management Lessons from Mayo

Service Systems: Lessons from Mayo Clinic CP1332175- Kent D. Seltman, PhD Mayo Clinic Marketing Division Chair Emeritus

Professor Leonard L. Berry
Distinguished Professor of Marketing, Texas A&M
Founder of Services Marketing
First to argue that marketing services ≠ marketing products
Limited power of marketing communications
No advertising can rescue poor service
Your service IS your marketing
Career – financial, hospitality (hotels & restaurants), retail and healthcare services
CP1332175-

Management Lessons from Mayo Clinic
Why “Management” not just “Marketing”?
Great service needs the “whole village”
ALIGNMENT
Service systems more than service heroes
Managing the Clues of Excellence
Tools for seeing how your organization presents itself through its service delivery
CP1332175- Leonard Berry and Kent Seltman, Management Lessons from Mayo Clinic, McGraw-Hill, 2008

Why a Mayo Clinic Case Study?
A “Premier Services Provider” for more than a century
Founders got so much so right that the values and business strategy are unchanged
Serves a real market – common folk (farmers, laborers, shop owners, executives) in addition to small numbers of celebrities
Arguably the world’s strongest healthcare brand
Created without a marketing department
Word of mouth from satisfied patients built the brand
CP1332175-

Patient Loyalty
95% said “good things” about Mayo Clinic after visits
Average of 46 heard these “good things”
90% recommended Mayo Clinic
Average of 20 advised to come
Average of 7 actually came
CP1332175- 2003 Patient Brand Monitor Study

Healthcare Hospitality’s Unique Challenges
Customers are sick or injured and many have pain and/or high anxiety
Many customers live in for a few days and give up freedoms
A “need” not a “want” service
Healthcare is inherently personal
Customer’s require holistic and customized services
Risk of being harmed beyond their existing medical problems
CP1332175-

“ See a doctor. Tell him you need a spine evaluation.”

Mayo Clinic’s Service System
The organization controls most parts of the complex service chain
Outpatient practice, testing labs, and hospital
Highly skilled service performers who work as a team
Comprehensive portfolio of skills and resources available
Reliability of its services based on the science of industrial engineering/systems engineering
Science of healthcare delivery
CP1332175-

“ . . . he was not willing to
take off the table grim
possibilities like ALS*.”
*Amyotrophic lateral sclerosis

CP1332175- Questions

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Kent Seltman - Management Lessons from Mayo

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