MORE WITH less (Oh not again!)

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MORE WITH less(Oh not again!)

• Kathleen L. Lewton, MHA, Fellow PRSA
• Steven V. Seekins, MPA, Fellow PRSA
• Kenneth G. Trester, Fellow PRSA
• Lewton,SeekinsTrester
• PRSA International Conference October 17, 2010

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We come with (some) good news

• Cutting budgets can be an opportunity . . . . to
  reinvent your work in a newbetter wayReally.
  Glass half-full and all that!
• We are here with PRACTICAL counsel on how to do
  itAnd whats the alternative? Just say NO?

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Overview Weve heard it all before

• Tighten belts
• Cut out the fat
• Across the board reductions
• Support areas (staff functions, aka fluff) take
  the first hits
• And theres only one difference today . . . . .

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This economic downturn is even impacting
healthcare

• Provider organizations are desperately seeking to
  mitigate the effect of the financial crisis
  says HealthLeaders national exec survey
• And they are walkin the walk
• Cost reduction one of top 3 priorities of CEOs
• They see hospitals really ARE closing
• If NYC is a bellweather . . . . . small and large
  alike are going down
• Rx companies are looking at less-than-robust
  pipelines, patents expiring, ever lurking threat
  of (more) government regulations
• Docs ready to sell practices to best bidder

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And even organizations that are doing OK . . .
. .

• Are looking three or four years out and (if
  theyre paying attention), theyre worried
• The cost slashing consulting firms are doing a
  lot of business
• And they love to look at the expense side of the
  ledger first
• Even IF you may avoid budget or staff cuts, you
  are surely being asked to do more, more, more

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We could (and would) go on and on . . . .

• The CEOs were hearing from are battening down
  the proverbial hatches
• SO when the phone rings or the email arrives
  saying Tell me what youll do to cut 30 out
  of your budget . . . . . OR
• Here are six more things we need your team
  to handle . . . . .

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Is it mean to be leanORkeen to be lean??
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More with less IS an opportunity!

• Weve all been through this in the past
• First reaction oh my, but not US?
• Is it something Ive done? Or said?
• But were doing SUCH great work!
• Ive tried SO HARD . . .

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Time to remember . . . .

• Its not personal. Its business.
• Thats how the CEO sees it, so if you react
  personally . . . . .

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Yes, we CAN fight the fight

• Make a great, and 100 accurate, case for the
  value of the work we do
• Explain and explain why were different, should
  be exempt, are better than the others, help the
  others, etc.
• But really do we want to be perceived as
  DIFFERENT than the rest of our management peers?
  Is that the way to the CEOs heart?

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Because even IF its true . . .

• What youre really asking for with that line of
  attack is
• Take less from my division and MORE from
  somewhere else
• Nursing?
• And what we sound like is
• Tone deaf, self-centered or truly clueless

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I said we are in bad shape, and my PR VP said
but I still need this budget
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The other scenario . . .

• OK, Ill get a plan together.
• And do you also want us to start working on a
  communications plan so we can be ready to present
  this to the organization?
• THAT is music to the CEOs ears
• PS You have to really mean it. You cant go
  back in two weeks with Heres why we really
  cant cut OUR budget.

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SO . . . . . where do you start and what do you
do?

• A practical 5-step
• analytic approach

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Our 5-Step Approach

• Lock in the essentials that must stay (but may be
  revamped).
• Then look at whats left and
• Ruthlessly assess the high cost items
• Analyze and evaluate remaining programs and
  prioritize the keepers
• Identify NEW best practice efforts that you want
  to add
• Finally go back over whats left on the table
  and ask How can we do this more cost
  effectively

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• Step One Identify, justify and recommit to the
  ESSENTIALS

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LST Short List of Essentials

• Customer satisfaction (and the culture change to
  get there, if needed)
• Employee communications
• Online/website core channel, front door
• These have to stay -- but that doesnt mean as
  is all can be revised and revamped with an eye
  toward leaner, keener

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Essential 1 Customer SatisfactionPR plays a
leading role
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The core of any organization Customer
carecaring

• Reputation is built on reality -- how we perform,
  how we take care of and build relationships with
  our core stakeholders,
• Promotion builds awareness and supports
  perception but the foundation is performance
• So marketing/PR must be integrally involved in
  this key arena of organizational performance, not
  just relegated to promotion or communications

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Up Close Customer satisfaction

• Customers are expert endorsers their
  opinions based on experiences and their
  satisfaction drives word-of-mouth endorsements
• Todays picture isnt pretty
• Banks, airlines, pharmacies, hotels, Netflix,
  Pampers the blogosphere is rife with UNHAPPY
  CUSTOMERS
• As prices increase, crankiness and expectations
  increase and poor service results in REALLY MAD
  people

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Culture change may be required

• Customer satisfaction often requires true culture
  change, and PR/marketing staff are the culture
  change warriors
• McKinsey study of execs in companies that
  successfully implemented change
• Clear, comprehensive and compelling communication
• Define and share clear goals
• Communicate a compelling story
• Acknowledge success regularly and publicly

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PR Culture Changers

• CEOs of top performers in the quality and
  customer satisfaction arena say it has to start
  at the top
• Ideal place for PR/marketing to step up and help
  CEO make it happen
• If you have a crisis, leverage it
• If you dont have a crisis, lead by inspiration,
  persuasion, threats . . . . .
• Use communications, research and planning skills
  to ensure that data is translated into action

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The public relations role also includes

• Culture management
• Keep the platform burning
• Provide measurement tools
• Manage the customer research
• Shoppers
• Other feedback mechanisms (Web, callbacks)
• Spread the message
• Successes AND failures/challenges
• Metrics outcomes and benchmarks
• Keep it on top managements agenda

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Make it stick - even if youre big, complex
decentralized

• Cant be Change Initiative du Jour
• New processes to support new cultures
• HR policies and practices critical
• Reliable tracking systems
• Accountability mechanisms
• Disciplined, methodical rollout plan with
  standardized communications
• Benchmark against national peers, AND your own
  market competition

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Essential 2 Internal CommsCreating a motivated
workforce
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Employee Communications A core sustainable
strategy

• Employee behavior drives QUALITY,customer
  satisfaction, market share, efficiency and more
• Employees can support or undercut all messages to
  other stakeholders

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Workforce communications

• Require multiple channels
• Education/literacy variations
• Employee preferences
• Repetition important
• AND Face to face with supervisor remains 1
  preferred channel
• Publications, e-mail, videos, etc., can be used
  to reinforce, explain details

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Case in Point The Huddle

• Organizational problem
• Low employee satisfaction with intradepartmental
  communications
• Low employee satisfaction with trust
• Bottom quartile patient satisfaction
• Serious financial losses

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Solution The Huddle Breakthrough
communications tool

• Systematic process for assuring group discussions
  every day
• Simplicity 5 to 10 minute meeting
• Consistency everyone, everyday, every shift
• Interactivity discuss customer service standards
• Motivational reinforce personal values
• Fun engender team spirit

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Do you rely on huddles for information?
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Patient loyalty scorescause and effect?
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Other major gains
Pre Post Change
Consumer Top-of-mind Awareness 36.3 44.2 ? 7.9
Consumer Preference 31.2 41.6 ? 10.4

Market Share 35.3 38.9 ? 3.6
Profitability -2 1 ?3pts
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Chain of success starts with satisfied employees
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Essential 3 Web PresenceIts the foundation
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We really dont need a slide here

• We all know we live in a www. World
• But how many sites are truly best in class?
• Easily, easily navigable
• Eye-catching and easy to READ
• Great copy thats exciting
• CURRENT and instantly updated
• If not, why not?
• Facebook friends and tweets dont make up for a
  HOME page thats not top notch

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Now that we know whats staying . . . .

• . . . . .How to sort out the rest

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Once the essentials are nailed . . .

• The hard part starts
• What stays as is
• What stays but is downsized or restructured
• What goes on the auction block (back to the
  departments who should be doing it)
• What goes in the dark of night
• Whats given a decent public burial
• And whats added

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There IS an upside opportunity to lose dead
wood, streamline, enhance

• Yes, some of this will be painful (we all love
  our four color glossy magazines)
• BUT this is also an opportunity to get rid of
  things you have hated for years
• If youve always done it for TEN years
• And to ADD best practices youve wanted to add
  but couldnt get extra budget for
• Slash enough and theres suddenly money available

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Recap Steps 2-5

• Step 2 Assess the high ticket items
• Step 3 Rank order the rest of the list using a
  defined, rigorous process
• Step 4 Determine what youd like to add
• Step 5 Go back and look at every program with
  your Is there a better, cheaper way to do THIS
  radar

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Step Two Look at the high cost programs

• CRM Highly expensive not always effectively
  used. Can you do just as well buying segmented
  mailing lists?
• Ratings services (pay2play) Expensive, seldom
  worth the investment. Consumers dont use them,
  and everyone can get some sort of high rating,
  thus leveling the playing field.
• Consultants Often theyre first to go, but
  carefully evaluate their value in resetting
  strategy or outsourcing project work.
• Sponsorships Rigorously assess ROI. If a
  sponsorship has no purpose but to gratify
  someone, assign the cost to that someones
  budget.
• Publications Do they really have a purpose
  anymore? Havewe maximized what we can
  communicate for free? Can we do more
  face-to-face communication?

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Step Three Assess and prioritize (How to retain
your sanity, your employment status and your
peers)

• Hint use a PROCESS,
• not a dart board

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Look at your to do list strategically

• Assessment and analysis
• Know your audiences and how to best reach them
• Identify how each project you do ties
  specifically to key business objectives
• Ask around interview the key players and find
  out what they need, want and expect from PR
• Clues to what you can broom away
• Also fodder if they end up saying dont cut
  anything (because no one is willing to give up
  anything)
• Do THEY agree on corporate business objectives?

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By going through this process

• You build and maintain credibility and support
  from the rest of the management team,
• Youre seen as a canny innovator whos clearly
  trying to craft win-win solutions in lean times

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Then start sorting

• Create a set of criteria to assess each program
  or project your department now handles
• Adds a level of objectivity to the process and
  helps you sort through it all

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Marketing and Communications Prioritization
Methodology
Program Priority Decision
Publicity
Marketing
Key Client Business as Usual
Included in Strategic Plan
Not Included in Strategic Plan
Potential
No Potential
OUT (3)
IN (7)
IN (8)
IN (1)
Marketing can Impact
Low Marketing Impact
High ROI
Low ROI
OUT (3)
KEY 1 Will do major program 2 Planning
support may do 3 Wont do 7 Publicity
effort only 8 Key client business as usual
Low Backing
High Backing
Resources Available
No Resources Identified
No Resources Identified
Resources Available
IN (2)
IN (1)
IN (2)
OUT (3)
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For example
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Criteria to consider

• Does this program/project
• Have a champion (CEO, Board?)
• Support market growth (raise funds, recruit
  students, etc.)
• Enhance our reputation
• Build relationships with a key audience
• Highlight a niche thats unique to our
  organization
• Contribute to employee morale
• Have a measurable impact

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This process gets you to

• The point where you have looked at everything you
  are doing with a rigorous eye, using facts and
  data
• And you have numbers to help you rank order the
  list
• That helps when someone says we MUST keep doing
  18, because you can say OK, then 4 has to go

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Step Four Whats shall we add?

• What new channels/tactics can you create/enhance
  to deliver their message to the right audience
• Social media
• Blogs
• Thought leader programs cost almost nothing,
  and if you make 200 key opinion leaders
  insiders youre reaching 20,000 people
• Community-based events
• Affinity groups
• AND . . . . . . (yall share your ideas now)

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Step 5 One last lookCan we do it cheaper?

• Take your final list the essentials, the
  keepers in priority order, and the new additions,
  and look at each tactic, askingIs there a way
  to do this less expensively?
• Online vs.printed
• Market to docs vs consumers or consumers VIA docs
• Face to face, the cheapest channel of all . . . .

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Having completed the five steps . . . .
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Now you have a PLAN

• Begins with the Essentials
• Omits high ticket items that dont deliver real
  value
• Rank orders programs and projects, eliminating
  the low rankers to make more time for . . . . .
• New programs
• AND everything has been scrutinized for cost
  efficiency and effectiveness

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So sell it . . . . .

• It meets needs within budget constraints
• Its based on best practices, proven effective
• Youve built in metrics and research dollars to
  ID results!
• Have an expert or expert opinion available to tee
  up or back up your plan
• Pre-sell it to key peers so they get it and
  will speak up in support
• Youve created a better program, with more
  content and results, for the same or less money .
  . . AND youre free from the things that never
  worked!

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Stay in touch

• We welcome phone or email questions and dialogue
• Klewton_at_LSTLLC.com 917 734 5376
• Sseekins_at_LSTLLC.com 818 378 6664
• Ktrester_at_LSTLLC.com 313-515-0321
• www.lstllc.com