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What Kind of Terrain Analysis Is Needed in Hospitals?
From a Workshop Attendee

You asked about the kinds of analysis that sales reps might want to makeconcerning their local hospital accounts. There is the obvious set of questions concerning clinical issues and influencers, and you have the questions that are in the program materials from our Building Competitive Immunity workshop.

I believe that sales people could learn from the work done by Hamel and Prahalad in their book "Competing for the Future."   They suggest that one assess the opportunity by answering the following questions concerning the account (I am paraphrasing these to be more specific to healthcare):

1) Are the Providers reasonably concentrated, with fairly stable marketshare positions? Are they participating in "gentlemanly" competition in order to maintain their margins or are they competing directly?

2) Is the Provider system fragmented? (Economies of scale are not being leveraged.)

3) When you ask your customers (at all levels) what they see as their secret to being a leading provider (their strategies), how do they respond? Do you hear anything that helps you to see that there is an understanding of differentiation? Why would they tell a local employer that they should consider their provider network for healthcare needs?

4) What is the background of the executives within the Hospital/System?  Have they spent their entire professional lives within the industry? (This can lead to less creativity and innovation.)

5) Is the provider's acceptance of new technology or products slower than most? (Are they innovators?)

6) Have the provider systems enjoyed a large presence in the community?  Have they enjoyed large barriers to entry of competitors? (They may have been able to rest on their laurels.)

7) Has the basic concept of products and services offered remained the same?  Is their any provider system that is pushing innovative offerings (i.e.community involvement programs, etc.)

8) Are the high-level providers blaming their business challenges on regulations? (They may have given up on creating innovative ways of addressing business challenges.)

If you find those individuals who are leading in these areas, then you have

found someone who either has, or will have, power in the industry.

Be certain to refresh your personal knowledge of those questions that

Stovall Grainger Modleski consultants ask when they work with sales people in the

field:

* How is change affecting your organization?

* In the next three years, how do you see the evolution of your business or responsibilities?

* How will the future be different from today?

* What do you see as some of the most critical issues facing your industry?

* If you look at your organization, how do you feel that you aredifferentiated from others in your market?

* If I were a CEO considering contracting for my organization's healthcare, why would I choose you as a provider?

* What would you say the core competencies are for your organization?

* What percentage of your patient load is currently: Capitated; Fee for Service; Medicare/Medicaid?

* What trends do you expect in terms of payor mix?

* What new types of providers do you see emerging on the healthcare scene?

* What would you see as the "ideal" structure of the healthcare organization of tomorrow?

* What do you see as the major advantages of being a (for profit/not for profit organization) such as yours, compared to the alternative?

* Where do you see horizontal and vertical integration going in terms of your organization/practice?

* In the next few years, how will you position your organization to be a leading provider of services?

* How will you balance the need for improving quality and, yet controlling costs?

* What are some of the organizations to which you belong?

* If you could suggest one printed source for me to consider as I try to increase my knowledge of your business issues, what would that be?

* Where can I go to learn more about the challenges facing you and others in your position? What can I read...? What organizations might I consider joining...?

* How can I learn more about the "business" aspects of healthcare?

* Who might I speak to in your organization that can give me another perspective on the needs of your hospital/network/office?

* What other organizations have an impact on how you provide your healthcare services?

* What do you see as the ideal relationship between your organization and those who wish to provide you with products and services?

* What does this term "partnership" mean to you?

* Are there any other healthcare related services that you see falling under your organizational umbrella in the near term?

* What are some of the ways that you see your organization linking itself with your customers or with the community?

* What are some of the ways that you are encouraging the continued growth of your organization in order for it to continue to be a leader in the healthcare industry?

* Where do you look to get an idea of the challenges you might be facing in the short term?

* We've talked a great deal about change and its impact on your business, but as the _____________ of this organization, over the next 6-9 months, what would you see as one or two goals that you feel absolutely must be achieved if this organization is to be a leader?

Strategic Sales Consultants realize the importance of addressing the clinical and business performance needs of their customers.  In order to achieve this high-level of service, knowledge of the customer must include their business operations.

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