Healthcare Strategy with Cole Lyons | E. 109

Strategic planning is vital to successful healthcare management. President & Co-Founder of The American Healthcare Journal, Cole Lyons, explains his goal of fostering a community of education to Jim Cagliostro. 

 

Episode Introduction

Cole explains why transfer of knowledge is a key goal of the Journal, why healthcare strategy can be described as moving from checkers to chess and emphasizes the importance of thinking before you speak. He also explains the importance of competition in healthcare and identifies humility as an essential leadership trait.

 

Show Topics

 

Redefining healthcare strategy

A strategic alternative for nonprofits 

Breaking down silos in healthcare

Join Cole’s community on LinkedIn

Applying economic theories to healthcare strategy

Leadership tip: why humility matters

 

 

05:36 Redefining healthcare strategy 

Cole explained why thinking about the impact of your actions matters. 

‘’For me, it's kind of thinking before I speak. I think that's the best way that I've come up with how to explain it. In operations, day-to-day, things are quite hectic, especially at high volume clinics. And you have to make very quickly, fairly educated decisions based on standard operating procedures. But sometimes that doesn't always lead us down the best path. So part of that is creating standard operating procedures that allow you time to think about how it impacts things long-term. So, thinking before you speak for me means instead of just saying what I need to say in the moment, I think about what I say, how it will impact the person hearing it, how it'll impact my image. And if you apply that kind of thinking before acting approach to your actions in the operations space, it means taking a step back and looking at the competitive landscape in your industry, looking at the competitive landscape in your institution, different departments competing for funding, different departments competing for exposure, and looking at how even small actions in the operations world will impact that.’’

 

08:12 A strategic alternative for nonprofits

Cole said the Journal aims to foster improvement and education in strategic thinking for nonprofit institutions. 

‘’… the problem right now is VC-backed healthcare firms, those that are backed by venture capital. They have a high concentration of MBAs who have really good strategic insights. So don't get me wrong, and we can always go into this anytime, but there's a problem with a lot of the strategy theories out there in general that are taught to MBA graduates because it's based on economic theories that don't always play out in the real world. But still when they make decisions, it is much more strategic than in nonprofit healthcare. And so, one of the issues is that I'm not a fan of government-run healthcare, which is a little contrarian. I'm just not particularly a fan of it. I think that free market healthcare is good, nonprofit institutions are my favorite. I love nonprofit institutions. I think that that's the best form of delivering healthcare. But they don't act very strategically, especially compared to VC-backed or for-profit healthcare, which employ all these MBAs, they recruit MBAs from the top schools, they can pay them. …I'm not saying that they're any less educated, they're just educated differently. They have MHAs, they have MPAs, a lot of them have MDs, and they are educated in a very different way. So the journal's purpose is how can we foster this community of improvement and education in strategic thinking for these people who are educated in a much more practical way? An MHA isn’t sitting in their office thinking and going into philosophy a lot of times. A lot of times they're figuring out, how can we solve this problem? How can we deal with this emergency situation?’’

 

13:36 Breaking down silos in healthcare 

Cole said administrative fellowships can help to develop a well-rounded approach.

‘’One of the ways that this is going to work out really well, and a lot of programs are doing this, is through administrative fellowships. I actually have a lot of different things that we're involved with with that, trying to get fellowship certified, trying to get fellowships publicized a lot because administrative fellowships have to rotate through every department in the organization usually. They know all the leaders. And so when they go and work in operations, they are very well-rounded. They have a much better strategic vision of the organization. They know clinicians, they know the house staff, they know the janitors, they know everybody. A lot of times they know the people who are on construction teams building the building. And so that gives them a huge, well-rounded approach that's also going to massively improve strategy. So yeah, the majority of organizations are still struggling. They're siloed or they don't even have really a strategy team, but there is a good trend for improvement I think on the way.’’

 

16:32 Join Cole’s community on LinkedIn

Cole said anyone who wishes to get involved with the Journal can connect on LinkedIn and YouTube. 

‘’LinkedIn is one of the best knowledge communities. There's a bunch of knowledgeable people. All my mentors have come from LinkedIn. The past two jobs I've gotten, including the journal, so I guess my past three jobs, have all come from people I've met on LinkedIn. So I would say go to LinkedIn, the American Journal of Healthcare Strategy is on there. I am on there. Happy to network and connect with anyone. Also, just happy to be kind of a funnel connecting you to other people. If you want to meet someone in the Philadelphia region, I know most of the senior leaders here at least casually, so I can always connect you to somebody if there's somebody you want to meet. So yeah, LinkedIn is definitely the best way until we get that website and mobile app up and running…. I know sales teams have told me that they've benefited a lot, our YouTube channel and our LinkedIn, a lot of time our LinkedIn will link to the YouTube channel.’’

 

19:08 Applying economic theories to healthcare strategy

Cole said education is important to help hospitals adapt to strategy.

‘’I think the first reason that it's important is because if you're an MHA grad and you're interfacing with an MBA graduate or somebody who's a consultant, I guess classically trained in business, you need to understand the economic theories that they're going to be using and you also need to understand why they seem flawed. So when you go through a strategic plan and you utilize one of these theories, it could be like Blue Ocean or you utilize Porter's Five Forces, I like them, I think they're excellent, but they are flawed in some situations. And coming from operations, you'll identify, "Oh, there's something wrong with this," but you might not exactly know how to explain it. And it'll give you the language, it'll give you the techniques. You'll be able to construct these Five Forces plans, the Blue Ocean Plan. There's another one I can't remember off the top of my mind. But then it'll take you and say, "Okay, here's the problems with some of them. Here's how you can identify what the issues are, and here's how you can fix them as well." So, when a consultant comes in and gives you this awesome plan, it'll not have you throw plan in the trash. It'll have you say, "Oh, here's how I can adapt it to fit my organization." 

 

21:55 Leadership tip: why humility matters

Cole said humility enables leaders to make connections. 

‘’Humility is really, really important. I've been so privileged to sit with most of the CEOs of hospitals in the Philadelphia region. I think that the humility of some of them is really astounding and it leaves a lasting impact on me. I also think that those are usually the ones who are most respected, being down to earth and being humble, speaking with all the members of staff because you actually need to and want to and not just because it makes you look good…Also, the other lesson Six Sigma, the Gemba walk, the... Before you can become a manager in Japan, you have to go through all the departments…When these people rotate through these departments, I was talking to one the other day that she was in the parking lot looking at the road signs in the parking garage and working with the builders in the state to make sure that these parking lot road signs were constructed correctly. A few years later, she's going to be a hospital administrator, but that experience in the parking lot looking at the road signs, invaluable, because now she has a connection to the whole organization. And you can only make that connection if you're humble.’’

 

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You’ll also hear: 

 

Transfer of knowledge, the goal of the American Journal of Healthcare Strategy: ‘’It’s really essential that we think of things differently. …. what we're trying to figure out is how to transfer knowledge around in a better way, whether that is through consulting one-on-one, whether that's through one-on-one coaching, or whether that's through podcast or video. How can we get a community that is knowledgeable and is empowered by that knowledge? That's what our real goal is at the end of the day.‘’  

 

From checkers to chess; another way of looking at healthcare strategy: ‘’So with checkers, you're kind of looking at the very next move. With chess, the best players are looking many moves ahead. And how one move in one side of the board will affect the move in the other side of the board. It's a pattern of thinking that's very hard to develop even. In the first way I mentioned with thinking before I speak, it's very challenging.’’

 

The role of competition in American healthcare: ‘’Even though we have problems with our population care, our actual procedures that we perform, there are lots of medical tourists coming from other countries to receive care in the United States because our healthcare is really excellent in terms of a lot of the quality. We want want these nonprofit firms to be able to compete really well against VC-backed. And so that's what motivates us.’’

 

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