STRATEGIC MANAGEMENTOF
HEALTH CARE ORGNIZATION
CHAPTER (8) PRESENTATION;

TOPIC:-

VALUE ADDING SERVICE DELIVERY
STRATEGIES
IBRAHIM ZUBAIRU ABUBAKAR
-----------------------------
INTRODUTION
DEVELOPING STRSTEGIES
Directional

MISSION
VISION
VALUE
GOAL

Adaptive

Market entry

PURCHASE
E.g. production
EXPANSION
Development
SCOPE
COORPERATE
REDUCTION
Merger
SCOPE
Joint venture
MAINTENANCE
DEVELOPSCOPE
MENT
Internal Devt.

Competitive

STRATEGIC
POSTURE
POSITIONING
MARKET
SEGMENT

Implementation

SERVICE
DELIVERY
SERVICE
SUPPORT
ACTION
PLAN

Implementation Strategies' are directed toward value adding services &
value adding support
Reasons for adding values
Because of the competition and complexity in
the marketplace, the health care provider must
add value in order to survive the value chain
consist of;IMPLEMENTATION STRATEGIES

Value adding service delivery

Value adding services support
Value chain
Are primarily operational & market oriented

Value added service delivery strategies
Pre-service
-Market & market research
-Target market
-Branding
-Distribution/logistic
-Promotion

Point of service
-Clinical operations
Quality
-Process innovation
-Marketing
-Patient satisfaction

After-service
-Follow-up
Clinical
-Marketing
Billing
-Follow-on
Clinical
-Marketing

Matching—to the strategies/maintaining activities
VALUE ADDING SERVICE DELIVERY
STRATEGIES

• Value adding service delivery strategies translate the

•
•

directional, adaptive, market entry and competitive
strategies into action as a critical component of the
value chain
Attempt to repositioning health care organization in
the environment to create new competitive advantage
Value added service delivery strategies are critical to
the success of the organization because they are the
principal methods for creating value. Therefore,
explicit strategies must be developed for each
VALUE ADDING SERVICE DELIVERY
STRATEGIES
The components must be coordinated and work in
concert. It is the role of strategic managers
responsible for developing and managing the strategic
plan to ensure their Compatibilities. Value adding
service delivery strategies include:-

• Pre-service
• Point-of-service, and
• After-service strategies
PRE-SERVICE
ACTIVITIES

Entails the planning and activities that enable the
organization to determine its customers and the
services that will be offered to them as they enter the
system Pre-service marketing include:1- Market and marketing research
 2- Design services
 3- Brand
 4- Price
 5-Distribution/logistics
 6- Promotion
Marketing and market research
1- Market and marketing research
enables the organization to determine the
appropriate customers (target market) &
type of services to delivers by;• a - Gathering data about the market itself
• b - Potential customers
• c - Their want and needs & what will
satisfy them
• d -customers habit in term of health care
2- Design service

2- Design service that will provide satisfaction
to them
• a- Consumers
• b- Physicians
• c- Friends
• d- Families and to include
Multiple service categories such as• a- Long term care
• b- Emergency medication or segmentation (a
recognizable group that makes your market as
target market)
Brand

•
•
•
•

3- Branding represents three things :a- what an organization offers to the market?
b - What organization does?
c- What organization is?

•
•
•
•
•

It implies trust
- Consistency
- Defined set of expectation
- It sets promise
Strong brands have a unique position in the
mind of the buyer and can be usually articulated
Price
4- Pricing : • Moderate price strategy must be selected
carefully because is very difficult to
determine price and consumers don’t
have the ability to judge quality
Distribution/logistic;•
•
•
•
•

5- Distribution/logistic;a- Location of health care provider will impact
the number of people to seek the service
because people don’t want to travel great
distance
b- Demographic studies of the population are
important part of choosing location 4 facilities
c- Satellite offices & hospital branches are
important
d- Convenience factors drives people in
c- Mobile unit
Promotion :- a- Advertisements
• b- Public relation events
• c- Personal selling’s
• d- Sales promotions
• e- Contests participation in trade shows
Point of service








2- Point of service : -is oriented around
patient care and delivery (clinical), market
activities, market study in order to suggest good
manner in health care delivery
1- Point of service clinical operations
2- Point of service marketing
3- Clinical innovation
4- Marketing
5- Patient satisfaction
Point of service clinical
operations:1- Point of service clinical operations:• a- Intensive care required, such as acute illness
with quick recovery, significant illness (chronic
but manageable) & catastrophic illness –AIDS
• b- Mass customization (is a way of capturing
customers by friendly benefit of long term
physician –patients relationship)
• c - Quality operation must be maintained owing
to the media report that 98,000 deaths yearly
due to medical errors
Clinical innovation
2- Clinical innovation
• - Expects organization to come-up with
entirely new ways, systems or ideas to
improve patient care
• -Achieving high performance via mode of
operations
Point of service
marketing
3- Point of service marketing:•
•
•
•
•
•
•
•

3- Point of service marketing:a- Redesigning service lines around by
enhancing the patient experiences rather than
the financial aspects of delivering care
b- Multi-specialists, physician care team
c-Increase physician patients' communications
Matching point of service to the strategy
Quality
Efficiency
Speed
Innovations and
Flexibility
After service activities
(Back office strategies)
This is the final contact customer has with
the health care organization or next
appointment for further service is built for
customer satisfaction: 1- Follow –up (both clinical and marketing)
 2- Billing activities
 3- Follow –on
(Both clinical and marketing)
Follow –up activities
1- Follow –up activities (caring &
concerned)
• a- Calling out patient to ask if everything is
going as expected or whether additional
prescriptions are needed
• b- Patients’ satisfaction studies to
determine how she or he was treated can
save pain, complications & unnecessary
anxiety
• C- Follow-up says to customer “we care”
Billing activities
Billing activities describe customers
decision whether value receive or not
-Redesigning billing process reduced consumer
complaints from about 30 percent
• Avoid billing error
• Address complaints
• Explain service charges
• Use medical terminology that patients
understand
Follow-on activities;Follow-on activities; - is the last
stage include nursing home, care
arrangement after hospitalization
It identifies failure and rectify immediately
• a- It gives room for further services
• b- It gives chance for further check up to
make sure the problem is no longer
present
• c- It gives additional care
Conclusion
Finally, follow up can cement or destroy
a good customer relationship

THANKS for LISTENING

Strategic management for health care organization

  • 1.
    STRATEGIC MANAGEMENTOF HEALTH CAREORGNIZATION CHAPTER (8) PRESENTATION; TOPIC:- VALUE ADDING SERVICE DELIVERY STRATEGIES IBRAHIM ZUBAIRU ABUBAKAR -----------------------------
  • 2.
    INTRODUTION DEVELOPING STRSTEGIES Directional MISSION VISION VALUE GOAL Adaptive Market entry PURCHASE E.g.production EXPANSION Development SCOPE COORPERATE REDUCTION Merger SCOPE Joint venture MAINTENANCE DEVELOPSCOPE MENT Internal Devt. Competitive STRATEGIC POSTURE POSITIONING MARKET SEGMENT Implementation SERVICE DELIVERY SERVICE SUPPORT ACTION PLAN Implementation Strategies' are directed toward value adding services & value adding support
  • 3.
    Reasons for addingvalues Because of the competition and complexity in the marketplace, the health care provider must add value in order to survive the value chain consist of;IMPLEMENTATION STRATEGIES Value adding service delivery Value adding services support
  • 4.
    Value chain Are primarilyoperational & market oriented Value added service delivery strategies Pre-service -Market & market research -Target market -Branding -Distribution/logistic -Promotion Point of service -Clinical operations Quality -Process innovation -Marketing -Patient satisfaction After-service -Follow-up Clinical -Marketing Billing -Follow-on Clinical -Marketing Matching—to the strategies/maintaining activities
  • 5.
    VALUE ADDING SERVICEDELIVERY STRATEGIES • Value adding service delivery strategies translate the • • directional, adaptive, market entry and competitive strategies into action as a critical component of the value chain Attempt to repositioning health care organization in the environment to create new competitive advantage Value added service delivery strategies are critical to the success of the organization because they are the principal methods for creating value. Therefore, explicit strategies must be developed for each
  • 6.
    VALUE ADDING SERVICEDELIVERY STRATEGIES The components must be coordinated and work in concert. It is the role of strategic managers responsible for developing and managing the strategic plan to ensure their Compatibilities. Value adding service delivery strategies include:- • Pre-service • Point-of-service, and • After-service strategies
  • 7.
    PRE-SERVICE ACTIVITIES Entails the planningand activities that enable the organization to determine its customers and the services that will be offered to them as they enter the system Pre-service marketing include:1- Market and marketing research  2- Design services  3- Brand  4- Price  5-Distribution/logistics  6- Promotion
  • 8.
    Marketing and marketresearch 1- Market and marketing research enables the organization to determine the appropriate customers (target market) & type of services to delivers by;• a - Gathering data about the market itself • b - Potential customers • c - Their want and needs & what will satisfy them • d -customers habit in term of health care
  • 9.
    2- Design service 2-Design service that will provide satisfaction to them • a- Consumers • b- Physicians • c- Friends • d- Families and to include Multiple service categories such as• a- Long term care • b- Emergency medication or segmentation (a recognizable group that makes your market as target market)
  • 10.
    Brand • • • • 3- Branding representsthree things :a- what an organization offers to the market? b - What organization does? c- What organization is? • • • • • It implies trust - Consistency - Defined set of expectation - It sets promise Strong brands have a unique position in the mind of the buyer and can be usually articulated
  • 11.
    Price 4- Pricing :• Moderate price strategy must be selected carefully because is very difficult to determine price and consumers don’t have the ability to judge quality
  • 12.
    Distribution/logistic;• • • • • 5- Distribution/logistic;a- Locationof health care provider will impact the number of people to seek the service because people don’t want to travel great distance b- Demographic studies of the population are important part of choosing location 4 facilities c- Satellite offices & hospital branches are important d- Convenience factors drives people in c- Mobile unit
  • 13.
    Promotion :- a-Advertisements • b- Public relation events • c- Personal selling’s • d- Sales promotions • e- Contests participation in trade shows
  • 14.
    Point of service       2-Point of service : -is oriented around patient care and delivery (clinical), market activities, market study in order to suggest good manner in health care delivery 1- Point of service clinical operations 2- Point of service marketing 3- Clinical innovation 4- Marketing 5- Patient satisfaction
  • 15.
    Point of serviceclinical operations:1- Point of service clinical operations:• a- Intensive care required, such as acute illness with quick recovery, significant illness (chronic but manageable) & catastrophic illness –AIDS • b- Mass customization (is a way of capturing customers by friendly benefit of long term physician –patients relationship) • c - Quality operation must be maintained owing to the media report that 98,000 deaths yearly due to medical errors
  • 16.
    Clinical innovation 2- Clinicalinnovation • - Expects organization to come-up with entirely new ways, systems or ideas to improve patient care • -Achieving high performance via mode of operations
  • 17.
    Point of service marketing 3-Point of service marketing:• • • • • • • • 3- Point of service marketing:a- Redesigning service lines around by enhancing the patient experiences rather than the financial aspects of delivering care b- Multi-specialists, physician care team c-Increase physician patients' communications Matching point of service to the strategy Quality Efficiency Speed Innovations and Flexibility
  • 18.
    After service activities (Backoffice strategies) This is the final contact customer has with the health care organization or next appointment for further service is built for customer satisfaction: 1- Follow –up (both clinical and marketing)  2- Billing activities  3- Follow –on (Both clinical and marketing)
  • 19.
    Follow –up activities 1-Follow –up activities (caring & concerned) • a- Calling out patient to ask if everything is going as expected or whether additional prescriptions are needed • b- Patients’ satisfaction studies to determine how she or he was treated can save pain, complications & unnecessary anxiety • C- Follow-up says to customer “we care”
  • 20.
    Billing activities Billing activitiesdescribe customers decision whether value receive or not -Redesigning billing process reduced consumer complaints from about 30 percent • Avoid billing error • Address complaints • Explain service charges • Use medical terminology that patients understand
  • 21.
    Follow-on activities;Follow-on activities;- is the last stage include nursing home, care arrangement after hospitalization It identifies failure and rectify immediately • a- It gives room for further services • b- It gives chance for further check up to make sure the problem is no longer present • c- It gives additional care
  • 22.
    Conclusion Finally, follow upcan cement or destroy a good customer relationship THANKS for LISTENING