Case Study:  Medical Society Administrators Conduct Operational Assessment

Contributed by Jennifer J. Jones, Plexus Consulting Group

Situation

A professional medical society with several hundred on staff and over 125,000 members has seen its membership begin to decline and its available assets decrease.  Previously, the society had real estate and investments that covered any of its losses.  However, when the stock market declined in September 2008 the society was faced with loss-making operations.  This almost 100-year-old organization needs to maximize its staff and financial resources to increase its perceived membership value, focus its efforts only on the most profitable and high-quality products, and ensure that its staff is working most efficiently to this end.  In today’s economy, this situation is being encountered by many not-for-profit entities - including  various hospitals, community health organizations, health associations and research foundations.

The society also seeks to increase effective cross-departmental communication among its membership, marketing, and product development staff.  The organization lacks synergy across departments where they are currently operating in isolation, and where the staff is not necessarily operating according to the organization’s overall strategic plan.  In order to ensure the organization’s viability, the society needs more efficient, focused staff operations and a reduction in its duplicate and misinformed efforts.  Therefore, the society also seeks to increase effective cross-departmental communication among its membership, marketing, and product development staff.

Action

The society’s administration conducted an operational assessment to promote staff productivity, membership recruitment and retention, and effective marketing and product development.  They specifically examined the following factors:

1. Staff Activities and Attitudes
2. Cross-Departmental Efficiencies
3. Membership and Stakeholder Needs
4. Membership Value
5. Product Value and Profitability

The assessment facilitated a fact-based, consensus-building approach by considering staff, member, and stakeholder responses.

Balancing more efficient staff activities with the most valued products and stakeholder needs allows the administration to maximize its staff and financial resources and eliminate time spent on non-value added activities. 

From the early phases of the research, the society was able to determine the products of most value to its stakeholders, as well as opportunities for future growth in programs and product development.  Furthermore, the society’s administration and staff were able to see the state of cross-departmental communications and staff activities based on staff responses.

To improve efficiency and revenue generating opportunities, new allocations of staff and financial resources were then balanced with stakeholder needs, based on the research and best practices from organizations that have experienced similar situations.

Result

Based on the findings from the operational assessment, the most profitable products were kept, while those determined to be less valued based on the research were re-evaluated.  Additionally, data concerning the communication across departments and staff time spent on non-value added activities was applied for improved operational functioning that maximized staff productivity, and inherently the financial capital of the organization.  Finally, the areas stakeholders identified as potential opportunities for growth and preferred member benefits were incorporated into future strategic planning and departmental activities. 

The medical society’s administration was able to ensure that energy and resources being used internally matched what the external world needed and wanted from their society.  This promoted the organization’s continued viability, particularly during these evolving economic times.

Contributed by Health Administration Member:
Jennifer J. Jones
Plexus Consulting Group
jjjones@plexusconsulting.com
(202) 777-8904 direct
(202) 785-8940 main