Kent Seltman - Management Lessons from Mayo

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Kent Seltman
Management Lessons from Mayo
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  • CP1332175 Seltman, KD KK 10-24-2008
  • Kent Seltman - Management Lessons from Mayo

    1. 1. Service Systems: Lessons from Mayo Clinic CP1332175- Kent D. Seltman, PhD Mayo Clinic Marketing Division Chair Emeritus
    2. 2. Professor Leonard L. Berry <ul><li>Distinguished Professor of Marketing, Texas A&M </li></ul><ul><li>Founder of Services Marketing </li></ul><ul><ul><li>First to argue that marketing services ≠ marketing products </li></ul></ul><ul><ul><li>Limited power of marketing communications </li></ul></ul><ul><ul><ul><li>No advertising can rescue poor service </li></ul></ul></ul><ul><ul><li>Your service IS your marketing </li></ul></ul><ul><li>Career – financial, hospitality (hotels & restaurants), retail and healthcare services </li></ul>CP1332175-
    3. 3. Management Lessons from Mayo Clinic <ul><li>Why “Management” not just “Marketing”? </li></ul><ul><li>Great service needs the “whole village” </li></ul><ul><ul><li>ALIGNMENT </li></ul></ul><ul><ul><li>Service systems more than service heroes </li></ul></ul><ul><li>Managing the Clues of Excellence </li></ul><ul><ul><li>Tools for seeing how your organization presents itself through its service delivery </li></ul></ul>CP1332175- Leonard Berry and Kent Seltman, Management Lessons from Mayo Clinic, McGraw-Hill, 2008
    4. 4. Why a Mayo Clinic Case Study? <ul><li>A “Premier Services Provider” for more than a century </li></ul><ul><ul><li>Founders got so much so right that the values and business strategy are unchanged </li></ul></ul><ul><li>Serves a real market – common folk (farmers, laborers, shop owners, executives) in addition to small numbers of celebrities </li></ul><ul><li>Arguably the world’s strongest healthcare brand </li></ul><ul><ul><li>Created without a marketing department </li></ul></ul><ul><ul><li>Word of mouth from satisfied patients built the brand </li></ul></ul>CP1332175-
    5. 5. Patient Loyalty <ul><li>95% said “good things” about Mayo Clinic after visits </li></ul><ul><ul><li>Average of 46 heard these “good things” </li></ul></ul><ul><li>90% recommended Mayo Clinic </li></ul><ul><ul><li>Average of 20 advised to come </li></ul></ul><ul><ul><li>Average of 7 actually came </li></ul></ul>CP1332175- 2003 Patient Brand Monitor Study
    6. 6. Healthcare Hospitality’s Unique Challenges <ul><li>Customers are sick or injured and many have pain and/or high anxiety </li></ul><ul><li>Many customers live in for a few days and give up freedoms </li></ul><ul><li>A “need” not a “want” service </li></ul><ul><li>Healthcare is inherently personal </li></ul><ul><li>Customer’s require holistic and customized services </li></ul><ul><li>Risk of being harmed beyond their existing medical problems </li></ul>CP1332175-
    7. 7. <ul><li>“ See a doctor. Tell him you need a spine evaluation.” </li></ul>
    8. 8. Mayo Clinic’s Service System <ul><li>The organization controls most parts of the complex service chain </li></ul><ul><ul><li>Outpatient practice, testing labs, and hospital </li></ul></ul><ul><li>Highly skilled service performers who work as a team </li></ul><ul><li>Comprehensive portfolio of skills and resources available </li></ul><ul><li>Reliability of its services based on the science of industrial engineering/systems engineering </li></ul><ul><ul><li>Science of healthcare delivery </li></ul></ul>CP1332175-
    9. 9. <ul><li>“ . . . he was not willing to </li></ul><ul><li>take off the table grim </li></ul><ul><li>possibilities like ALS*.” </li></ul>*Amyotrophic lateral sclerosis
    10. 10. CP1332175- Questions

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