Business Process Outsourcing (BPO) - Optimising Market Positioning and Placement for the new NHS
We are in the midst of unprecedented levels of change to our national healthcare system. Motivations vary, but there is an evidence-based view, that a centrally planned economy serving any vertical does not allocate resource in a necessarily efficient manner. Relative to a fiscally funded national healthcare system such as the UK NHS, the implications are potentially grave in terms of the State's obligation to tend to the public and medical health of the overwhelming majority of our population over the medium to long term. A correction is required.
Hence an invitation to the private sector to assist, but the public/private 'marriage' is far from straightforward as all stakeholders will testify. Standard business theory would dictate that these are ventures to be avoided - too many dissonant objectives, not least the merger of shareholder wealth and not for profit. However, we have little choice but to re-write standard business theory and facilitate the marriage.
If the above assertions are correct, then the forecast medium to long term potential for outsourcing business is overwhelmingly positive and this view is shared by the major forecasters. But what are the general rules for companies, irrespective of whether you're a turnkey operator at point-of-care or provider of F&A/Supply Chain outsourcing.
1. Configure your competences to the client - there is no 'one-size' and no standard rate-card;
2. Lead with your most accomplished relationship managers - you have a significant bridge to cross;
3. Adapt your marketing plan to the domain - particularly your sales force and their techniques;
4. Major on illustrative analytics and value-added - evidence on service efficacy is key;
5. Retain agility and flexibility to your offering - few plans survive that first contact;
6. Test the assumptions to your business, marketing and project planning with all relevant stakeholders - one flawed assumption can make the difference in attaining that positive ROI.
Planning wise, gap analysis on say a quarterly basis or as required is a very good practice, combined with subsequent rapid action.
Whilst there is no revelation to the above, compliance may still not be sufficient in an increasingly competitive landscape, to differentiate winners and losers. Market players should begin thinking and acting as venture partners with their NHS clients. This trend is apparent in the turnkey point-of-care vertical, where macro/micro healthcare system understanding is an absolute pre-requisite for private providers, but less so in the more generic F&A and Supply Chain outsourcing.
This is a time of great uncertainty in our healthcare system, but also great opportunity. Those companies with the right blend of leadership and execution can prevail however.