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SNAPSHOT
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There’s an old maxim: “form follows function.” The organizational equivalent is “structure determines behavior.” When reorganization is truly strategic, results can exceed expectations.
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Redesigning a Hospital System
Senior management of a large regional HMO/Hospital System wanted to architect a new organizational strategy for several related functions: Sales, Marketing, Account Service, Underwriting and Contracts. The existing system and cross-functional interactions were causing poor execution and declining customer satisfaction. In addition, rates needed to increase, but sales and service processes were ill equipped to handle changes.
The
client engaged Innolect Associates on a project to overhaul and
reduce Complexity
within and between functions. The system was redesigned from functional
silos to cross-functional teams supporting customer segments – for
example, Small Business and National Accounts. In addition, Innolect
Associates and hospital management:
- Streamlined processes
- Adjusted compensation mechanisms
- Redefined
roles (including those union members)
- Upgraded management practices
Results. In the next two cycles, the HMO/Hospital
System raised rates 10 percent with no net loss of customers. Management
attributed the success to the re-structuring and re-engineering
of processes.
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