This is the AHRMM Subject Matter Expert Podcast hosted by Justin Poulin. Tune in every month as we speak with Industry Experts to highlight success stories and solutions from the field that advance the healthcare supply chain. And now, Justin Poulin with this month’s Expert…
Guest: Joseph Jang, Partner @ Pathstone Partners
Topic: How to drive and scale change & impact (cost savings & margin improvement) to your organization
- Intro
- Driving Change - Key Formula - (1) Addressable Spend x (2)
Yield x (3) Speed to Value
* 1 – Increase Addressable Spend
- 30% of spend is represented by traditional supply chain
areas of influence (clinical supplies, implants, distribution)
- We need to leverage power of informal networks to scale
change; supply chain teams are brokers of networks
- Benefit of increasing addressable spend? Diversification
effect; every category represents a different risk vs. reward
ratio; stock market vs. mutual fund approach
* 2 – Increase Yield & Results
- Definition: How effective are we in driving results with what’s
given?
- We need to pursue a multi-value lever approach beyond price
to drive results
- Benefit: Leverage resides with you as the organization +
optionality
* 3 - Speed to Value
- Definition: How quickly can we drive results with what’s given
in an annual time period?
- Fuel vs. Friction Concept
- Benefit: Increase your speed by up to 2x by removing
psychological barriers (friction) to adopt and scale change
- Scaling Change – Two key concepts
* Every successful change effort takes the form of the S-
Curve; we need to find the early adopters and mavens to let
your change effort spread like wildfire
* Forgetting Curve – supply chain leaders need to give
themselves more credit! Constantly communicate progress
and wins or change efforts will be forgotten