UBC – Pharm 400Pharmacy Management

Strategic Business Planning

Sept 30, 2011Gerry Spitzner

retailSOS.ca

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Old School meets new school

Bringing a new perspective

“It was the best of times, it was the worst of times” – Charles Dickens

The Game Has Changed

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Dramatic change community Pharmacy is going through right now.

A very large shift is occurring in the market – a disruptive one, some would argue.

The Game Has Changed

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Thoughtstarters Leadership Brand and Branding Strategic approach to planning Your Clinical Service Business Plan

Objectives

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Are you ready to charge for the time it took and it’s going to take to keep your knowledge up?

You worked hard to advance your education; you deserve more than a “gold star”.

Thoughtstarters

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The Declining Need for and Escalating Value of Human Service

Are Pharmacists the ultimate barrier to Pharmacy practice change?

Thoughtstarters

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Do you want to make an impact?

Video: TED Talk by Derek Sivers Start a movement; with the power of two

Thoughtstarters

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Definition of Leadership

Trust Other People Act With Integrity Show the way then get out of the way

Leadership

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What’s the difference?

Brand - the message you push out Branding - the message that pulls people

Horizontal Branding – one for all Vertical Branding – all for one

Brand and Branding

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Are you ready...??

What is the REAL purpose of a business?

In retail it used to be...

It’s all right up here...

Thoughtstarters

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Three broad areas

Finance, Marketing, Operations

Why do I need a plan?

The Business Plan

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To build a successful Pharmacy practice you need a strategic approach with a tactical business plan that communicates benefits and answers the question...

“Why should I do business with you?”

BREAK

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What is your why?

Video: TED Talk by Simon Sinek - How great leaders inspire action

Thoughtstarters

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“What are you offering to your customers that sets you apart from the competition?”

Be Different or Be Dead

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“We... have been doing business here for nearly three decades. Offering quality products, great prices and excellent service in an easy-access location is definitely the foundation to our success.” – a carpet company

“What are you offering...?

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“Variety of unique and effective programs for weight loss that you won’t find anywhere else, certified professional trainer, registered nutritionist on site, work with you one-on-one.” – a weight loss business

“What are you offering...?

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“Fast, friendly prescription service. We accept 3rd party plans, provide delivery service and blister packing for our valued customers.” – a drug store

“Helpful, friendly professionals who enjoy assisting patients. It is our goal to maintain exceptional service as our top priority.” - hearing consultants

“What are you offering...?

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The “only” statement; the birth of differentiation

We are the ONLY ones that...

The “only” statement

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“AM730. All traffic. All the time. AM 730 Vancouver’s Traffic Station is the only station providing traffic twenty four hours a day seven days a week. AM 730’s audience has grown over 500% since launching, and more and more people are saving time and money by listening every day.”

A Worthy Only Statement

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The only statement forces you to consider customer benefits that only you provide; aspirations do nothing but make you feel good.

The only statement will set your team apart from all others in the market who are striving to avoid failure; you will be the long term winner.

Quick Bites

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The “Be Different” mantra is to be the only one that provides a service or product in a way that mirrors what customers want.

Keep checking your only statement with your customers to test it’s validity over time. Don’t forget your competitors aren’t sleeping.

Quick Bites

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Strategically only 3 questions that matter...

HOW BIG do we want to be?

WHO do we want to SERVE?

HOW will we COMPETE and WIN?

Strategic Approach

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HOW BIG do we want to be?

What are the financial goals in order to satisfy the owners of the business?

Strategic Approach

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WHO do we want to SERVE?

Who are the customers to whom you intend allocating scarce resources because you believe they represent the best economic opportunity for the firm?

Strategic Approach

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HOW will we COMPETE and WIN?

How do you intend to compete with other companies available to your targeted customers and win?

Strategic Approach

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Here’s an example...

“Our basic competitive approach will be to develop intimate one-to-one relationships with our diabetic patients (customers) and be the only Pharmacy in our community that delivers healthy living offers to match each one’s unique needs and preferences.”

How Win Statement

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The strategic game plan statement combines the answers to the questions: HOW BIG? WHO to SERVE? HOW WIN?

“We intend to (HOW BIG) by [desired time frame] by focusing our scarce resources on (WHO to SERVE). We will compete by (HOW to WIN).”

Strategic Game Plan Statement

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Financial goals determine the character of your strategy. Morph from a strategy-drives-financials paradigm to a financials-drive-strategy one.

There is no such thing as a bad customer; it’s just that some are better than others.

Strategic Summary

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Lifetime value = present value + strategic value. It separates the good customers from the great ones.

If a customer segment can’t deliver your financial goals why would you bother with it?

Strategic Summary

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If frontline people can’t answer the customer question ‘Why should I do business with you as opposed to someone else?’ you haven’t done your only work.

The Strategic Game Plan statement is your strategic anchor; it communicates the essence of your strategy.

Strategic Summary

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If people are not accountable, nothing happens.

Too many objectives paralyzes progress; define the critical few and do them.

Strategic Summary

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Financial spreadsheet template

Begin with start up Sales and revenue Then expenses Review your cash flow

Financial Plan (HOW BIG)

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Stop Marketing. Start Engaging.

The four principles of Marketing strategy

Market research

Marketing Plan (WHO SERVE)

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Deliver the promise

The 1 degree of difference

Operations Plan (HOW WIN)

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Make meaning Make mantra Get going Define a business model Weave a MAT (milestones, assumptions, tasks)

What Next?

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Niche thyself Find and work with infected people Lower the barriers to adoption Seed the clouds Don’t let the bozo’s get you down

What Next?

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Connect with me

Twitter: @passion4retail LinkedIn: Gerry Spitzner Blog: retailsos.ca Email: gerry@retailsos.ca Info: gerryspitzner.tel Info: retailsos.tel

Thanks

Gerry Spitzner