“Innovation in Healthcare – The Future of Employee Benefits”

Employers realize their employee benefits may be the deciding factor in their ability to recruit and retain the top talent. 

Adopting innovation as the foundation of a company strategy to provide employees with high quality, cost efficient benefits is a trend that is changing employer thinking. Making a transition to a strategic approach requires companies of all sizes to engage in a different way to purchase, manage and evaluate their benefit plans.

At the August CEOtoCEO Breakfast AristaPoint CEO Pat Chestnut and UHC Northwest CEO Claire Verity presented how to make the transition to Strategic Thinking and present the latest Innovations that employers are implementing to have a “Best Company” employee benefit program.

The Strategic Approach to purchase, manage and evaluate their benefit plans.

  1. Define Written Goals & Objectives
  2. Establish a Purchasing Process
  3. Know Your Market Segment & Rating Options
  4. Require Transparency of Cost
  • Marketing Compensation & Services
  • Evaluate Internal Administration Costs
  1. Benchmark Benefits
  • Versus Competitors
  • Region
  • Industry
  1. Establish a Healthcare Budget
  • % of Compensation
  • Total Expenditure
  1. Develop a Contribution Strategy
  • Defined Contribution vs Percentage
  1. Data Driven Decisions
  • Determine Data Points for Evaluation
  1. Develop a Product / Benefit Plan Strategy
  1. Analyze Carrier Performance

Rate Filings

Network Changes

Product Diversity

  1.  Review Communication Tools
  2.  Inventory Engagement Tools

Access to Care

Decision Making

Wellness Resources

 

 

Surviving the Age of Disruption

At the April CEOtoCEO Breakfast the discussion focused on how to lead during a time of wide spread disruption. Disruption within the business community has also created anxiety for many CEOs. According to its 2015 survey, IBM

John Buller

found that 54 percent of CEOs expect to contend with competition from outside their industries — rising from 43 percent in 2013.

CEO speaker John Buller of Loyalty Solutions posed the the following CEO round table discussion:

What are the most important changes that a company in your industry should make to thrive these disruptions?

The CEO’s discussion led to 5 leadership strategies to survive and thrive during periods of disruption

1. Having the right Organizational Culture

The culture needs to be built to allow change, with all of the voices from all levels of the organization participating.

Some comments were:

  • Create a culture that embraces change –find the right people to champion this change
  • Work with the willing – hire people that are willing to change
  • Build a Culture of Engagement (creating internal buy-in, bottom-up information flow, adaptability)
  • Make sure senior management is aligned and become promoters of change

2. Redefine your corporate strategies

The change from incremental improvement to a culture that is flexible to make change, needs to become your organizational strategy.

Some comments were:

  • Create an education effort around organizational change ‘How do we change?’
  • Purposeful/and deliberate plan for the future – ‘Create a process’.
  • Self-awareness – listening to changes – being able to be wrong.
  • Make sure you have a capital investment plan to be able to adjust to the disruption expense issues.

3. Identify organization change agents

The organizations needs to have change agents at all levels of the organization.

Some comments were:

  • Identify leaders that can champion change, find them at all levels of the organization.
  • Find the best communicators in your organization ,empower them to communicate like crazy
  • Coach up –Show you can adapt and support the change.

4. Embrace Technology Changes

In most cases the disruption will involve new technology and applications embrace the change.

Some comments were.

  • Have capital set aside to buy and train the technology change.
  • Educate your customers – expect they will need to be trained

5. Understanding Generational Differences

There is a definite difference in the skill level and motivation between the 3 generations now working in these organizations.

Some comments were:

  • The makeup of your organizational generations will have a significant impact on how you define and react to disruption.
  • Define and identify your next generations of leaders.
  • Focus on your company’s demographic – understand the differences

3 Strategies for Overcoming the Threat of Disruption

The topic of the April CEOtoCEO Breakfast was “Can You Survive the Age of Disruption?”

In the current business environment, operational excellence has become an imperative for business rather than a competitive advantage. The ability to rapidly adapt to a change in circumstances is what really sets companies apart today.

Consequently, chief executives need to deliver more than quality control, cost control and continuous improvement. They need not only to manage the continuous threat of disruption and ride the waves of change, but to overcome them, rather than be overwhelmed by them.

Here are 3 ways chief executives can out-fight the disruption beast.

“Companies should not fight disruptive ideas, but try them out on a small scale to see if they work.”

  1. Reinvent your company, don’t just optimize it.As Theodore Levitt explained in his classic “Marketing Myopia”, one of the reasons for the decline of the railroad companies in the U.S. was that they saw themselves as railroad companies rather than as transportation companies. This led them to a focus on optimizing their companies, while the entire railroad business model was being outflanked by newer means of transportation: car, trucks and airplanes. So define your business on the basis of the customer need you are trying to meet, not the product or service you are currently offering.
  2. Disrupt your own business.As Arie de Geus documented in his “The Living Company”, one of the keys to corporate longevity is a willingness to trying out new things. Using what essentially is a lean approach, companies should not fight disruptive ideas, new ways of meeting the customer need, but try them out on a small scale, see if they work, and take things from there. (I would recommend undertaking such activities in isolation from the core business. Let it be done by different people and house them in a different building. As Kodak experienced when it came to the digital camera business too late, new ideas have a habit of not developing well or soon enough when surrounded by those they could potentially disrupt.)
  3. Manage your company as a “portfolio of opportunities”.This includes moving away from the traditional, linear strategy process. Strategic planning should not be about identifying the most likely future, but the range of possible futures, including extremes. (Often it is the extremes where your competition makes advancements, so it’s critical to keep informed about these.) Strategy formulation discussions should then be about how your company could best position itself, and which business to give prominence in each of these futures. Final commitment of resources should be delayed as long as possible and, thus, made part of strategy execution, when you know how the market is really changing. This enables you to optimize utilization of the resources of your company whatever the future turns out to be.

GE is an excellent example of how this is done in practice. It recently launched “Current”, bringing together its various businesses of relevance to Renewable Energy – LED, Solar, Energy Storage, Electric Vehicle and Predix, its predictive analytics technology. It had been developing and trying these technologies for years, and now feels the time is right to push them forward and make them a focus for the company.

ANDREAS DE VRIES

How to Avoid Hiring and Recruiting Mistakes

CEOtoCEO Breakfast speaker Benson Porter CEO of BECU shared the “BECU special sauce” that has brought BECU into an era of unprecedented growth in member service, community giving, and technological development.  A key ingredient of BECU’s success is hiring for attitude over skill.

According to a groundbreaking study by Leadership IQ, 46% of newly hired employees will fail within 18 months, while only 19% will achieve unequivocal success. But contrary to popular belief, technical skills are not the primary reason why new hires fail; instead, poor interpersonal skills dominate the list, flaws which many of their managers admit were overlooked during the interview process.

The study (reported in Fortune and Forbes) found that 26% of new hires fail because they can’t accept feedback, 23% because they’re unable to understand and manage emotions, 17% because they lack the necessary motivation to excel, 15% because they have the wrong temperament for the job, and only 11% because they lack the necessary technical skills.

The typical interview process fixates on ensuring that new hires are technically competent. But coachability, emotional intelligence, motivation and temperament are much more predictive of a new hires’ success or failure. Do technical skills really matter if the employee isn’t open to improving, alienates their coworkers, lacks drive and has the wrong personality for the job?

To improve the success of your hiring practices by hiring for attitude and training for skill click here

What are the unique qualities of an excellent leader?

The round table question at the February CEOtoCEO Breakfast was “What are the unique qualities of an excellent leader?”  Attending CEOs offered a variety of responses including a compelling vision, active listening, rational decisions and strong relationships were offered by participants.

One of our speakers, Karen Lee, CEO of Pioneer Human Services who has previously excelled in leadership positions in government, utilities, education, law and the military offered Courage as the unique quality of an excellent leader.

Thought you might be interested in an expert from a post by Bill Treasurer that speaks to why courage is a central quality of excellent leaders.

Aristotle called courage the first virtue, because it makes all of the other virtues possible. In addition to being the most important human virtue, it is the most important business virtue, as well. Think about it: Other important business concepts like leadership, innovation and sales wither in the absence of courage. Leadership takes making bold and often unpopular decisions. Leadership takes courage. Innovation involves creating ground-breaking but tradition-defying ideas. Innovation takes courage. Sales requires being repeatedly rejected before closing a deal. Sales takes courage. Take away courage, and sales, innovation and leadership lose their potency.

Contrary to popular belief, courage is a teachable and learnable skill, and most everyone has the capacity to be courageous. Moreover, nearly all courageous acts represent one or more of three types of courage:

TRY Courage: The courage of initiative and action— making first attempts, pursuing pioneering efforts and stepping up to the plate.

TRUST Courage: The courage of confidence in others— letting go of the need to control situations or outcomes, having faith in people and being open to direction and change.

TRY Courage: The courage of voice— raising difficult issues, providing tough feedback and sharing unpopular opinions.

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At last week’s CEOtoCEO Breakfast speaker Bobby Herrera, President of the Populace Group, shared that one of the things that companies with great cultures do is select and hire the best people.  The following are some tips and tools I put together for you to help improve your employee selection process. Know what you are looking for.… Continue Reading