Game Changers - On Reflection...

So we have been considering Game Changers for the past few weeks. I’ve shared the trends that I am tracking. I’ve gone out on a limb and shared what I see in my “Crystal Ball”. Now I’d like to share a brief case study that comes from my personal / professional experience that is relevant to these discussions...


As I look about the industry today, I see signs that are reminiscent of 1995. At that time I was privileged to be a senior executive with an innovative, fast growing, quality oriented rehabilitation practice that operated 180+ clinical operations in 7 states with a staff of over 900 people. While the company had been growing at an average of 30% annually for over a decade with exceptional success, and the previous year had been the best on record, we sensed that significant change was imminent. Most others in the industry didn’t agree.


We followed our intuition and I accepted the challenge of taking a cross disciplinary team offline for five months to research the market, consider the situation, develop a strategy, and implement a plan of action. In our findings we concluded that within three years there would be surplus of professional staff (unheard of, in fact we were recruiting internationally to meet staffing needs) and that the company would need to reduce its expenses by 25% within 18 months without resorting to layoffs (we believed there were growth opportunities ahead for us). The goal was to enhance performance. The goal was achieved.


Then in 1997 the Federal Balanced Budget Act was enacted. It was implemented in FY 1998 for the purpose of reducing Medicare costs. Over the next three years there was indeed a surplus of physical therapy staff. Competitors laid-off staff and more than a few went out of business. Meanwhile, our company used its new competitive advantage (less overhead and greater productivity) to take on new business and lay the ground work for a major expansion.


As I said, I see signs reminiscent of 1995 in today’s market only on a greater scale. History, experience, and intuition suggest it is time for reflection, decisions and actions. It is in that context that I read my “Crystal Ball”.


In the next post I’ll discuss some of the strategies that I’m privileged to be working on with leading practices around the nation.


Bob


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Performance Builders