W3, Strategic & change management Flashcards
What are some issues in changing pharmacy environment?
Regulatory change
- PBS reform- turnover and margin reduction for pharmacies, products originally exclusive to pharmacy are now being sold in supermarkets eg cetaphil and difflam, de listing PBS items–> panamax, panadol osteo, upscheduling of codeine
- Changes in the market and disruptive business models
- Mergers and takeovers- terrywhite and chemmart
What is the challenge in the changing pharmacy environment?
“What we are seeing is the need for community pharmacy to adapt and continue to redefine itself and to proactively explore ways to remain relevant in the face of significant industry change”
How can we respond to the changing pharmacy environment challenge?
- 2 ways
Through:
- Sound operations management
- Stategic management
What is Sound operations management?
- managing resources
- meeting customer requirements (through delivery of product or service)
- streamlining operational process
What is stategic management?
- The objective of strategic management is to address fundamental challenges to the business in the medium to long term
- Requires analysis of the factors associated with customers and other pharmacies including competitors such as supermarkets. (the external environment); and
- The organisation itself (the internal environment) to provide the basis for maintaining the best management practices
- It is therefore important to have access to accurate financial data and business operations data in a timely manne
What is SWOT analysis?
S- strengths [Internal]
W-weaknesses [Internal]
O-opportunities [External]
T-threats [External]
What is SMART?
S- specific (clear, concise & tangible)
What do you want to accomplish? Who needs to be included? When do you want to achieve this?
M- measurable (dollars, volume, time, experiences)
A- actionable (you can do something to actually make this happen)
R- realistic (50% realistic is fine)
T- timed (deadlines announced, committed to)
Somme further thoughts…
- Broaden lines of business and offer a diverse range of products and services to meet consumer demands.
- Competing on price may work in the short term but it will be unsustainable in the long run.
- Look to pharmacy innovation, redefine what you offer
- You must be able to adapt quickly with change
- Offer a competitive product mix
- Introduce a niche area
- Use current resources - pharmacist only interactions
- Professional services
- Focus on better health outcomes leading to increase in trust and loyalty-rapport
- Use your vision to plan ahead. Clearly define where you are going. Match KPI’s to performance and use them to Benchmark against other pharmacies
What are KPIs?
- quantifiable measure
- used to gauge long term overall performance
- a subset of business metrics- measurements of business processes
- all KPIs are metrics but not all metrics are KPIs
- may apply to a whole business, division or individuals
- useful in determining a compants strategic, financial and operational achievements
- especially compared to those of other businesses within the same sector
What are examples of KPIs?
- Script Numbers
- Customer numbers
- Basket size
- Dispensary sales (remove any high cost drugs to avoid skewing data)
- Retail sales
- Gross profit $ and %
- Stock on hand
- Stock turnover
- Wages
- Wages to GP$ ratio
- Expenses
- Profit
- Compare and track major departments
- Generic conversion
What are some types of KPIs?
- financial
- typically focus on revenue & profit margins
- customer
- institute per customer efficiency, customer satisfaction and customer retention
- process
- meausre
What are some examples of SMART goals?
- By December 2021, have 100 loyalty club members making store purchases at least twice per month
- >90% satisfaction rating from loyalty club members on club promotions, value for money & relevance on an ongoing basis by March 2022
