All you have to do is listen. How often do we forget this simple little rule? Why are certain organizations doing so well in healthcare while others, in the same field, are having difficulties? Why are some organizations being touted as examples of what seems to be working and others continue to be targets of finger pointing and accusations? As simple as it sounds: The successful ones are listening.

To paraphrase Steven Covey, first try to understand, then try to be understood. In other words, don’t have the answer before you have heard the whole question. When I apply this concept to our industry, some examples of not listening would involve most of the dot-coms and certain group purchasing organizations. Some examples of listening well would be GHX (a dot-com) and MedAssets, Consorta and Broadlane (GPOs).

What’s interesting is that GHX was not perceived to be a major player at the height of the dot-com craze some four to five years ago. For many reasons GHX could sit back, take its time and listen to potential customers, unlike its key competitors who had all the answers and refused to believe that their potential customer base could not see what a great concept they had. By the time they had realized the errors of their ways it was too late. GHX is now one of the only remaining players in this field and has developed a model that, over time, seems to be appealing to the average user.

You’ll find a similar story in the GPO market. The three fastest growing GPOs, MedAssets, Consorta and Broadlane, have significantly different models and when asked, they acknowledge knowing that they will not be the right choice for everyone. How do they know that? They listened to the marketplace, realized it had different needs, decided on a model and moved on it.

The most flexible of these models appears to be MedAssets. The GPO portion of the MedAssets model is based on volume. With IDNs having the largest volumes and since most IDNs believe they can do some portion of their buying better then a GPO, MedAssets encourages it. Which other GPOs will be blunt enough to state that you don’t have to use all of their contracts? In fact, they know that you can do better in some cases and they will help you do it. Because they listened carefully to their potential customers, they see the accomplishments of their clients as proof that their "plan" is working. They are catering to a specific subset in the IDN market.

With Consorta and Broadlane you have models that require a higher level of participation from their members. However, it appears their objective is not to have as many members as MedAssets. They seem to be catering to a clientele that would rather spend their time and energy on other aspects of their operations instead of negotiating contracts or managing vendor relationships. In the case of Broadlane, they will even assume the management of the physical operations. Why are these models being so successful? Why do all of them seem to be taking business away from the "big two?" Simply, they were – and are – in a position to grow into the needs of their members.

While the giants slept and assumed they knew what was in the best interest of their members, the three upstarts actually talked to their potential members and listened to their needs. Now we see the slumbering giants awakening to the voices of their remaining customers. One example is the newly announced Premier agreement with the Greater New York Hospital Association, allowing for and publicizing just how flexible Premier can be.

As supply chain executives, what can we learn from these examples?

Listen to your customers – physicians, clinicians, executives, suppliers, etc. You can learn a lot from them. Do not assume that Nurse Ratchet is just on the warpath again. Talk to her, find the root cause of the problem and involve her in the design of the solution.

Previous experience and success does not mean you have the answers. Because you have been successful in the past does not ensure success in your next job. Each situation has its own dynamics. Learn from your previous experiences and always avoid making the assumption that you do not have a need to expand your base of knowledge.

Challenge the norm. Although you should be aware of the culture of an organization, do not be afraid to challenge those aspects that are detrimental to the success of operations.

Never assume that your work is done. If you look at the most successful supply chain executives, they are always looking for new ideas and encourage challenges to their own systems.

Where, when and how you listen are also extremely important factors. Go to your customers – don’t wait for them to come to you. People are always more comfortable in their own environment. When you prepare to go to your customers, make sure they will have the time for a productive conversation. Be flexible and understanding of their restraints and previous time commitments. How you listen may be the most important component. Look at the other person’s body language and observe their environment. Listen not just to what they are saying but how they are saying it. Are they giving you all the information? If you’re not sure, be prepared to invest the time to make them more comfortable with you. Creating a rapport is not an overnight process. It is a process that will take time and a lot of work, but it will be worth the effort if you are truly prepared to listen to what is said and interpret its applicability.

Only if you continue to listen to the ever-changing needs of your customers and are willing to change with those needs, will you have a chance of being successful, today and in the future.

Joe Colonna is the president of Strategic Initiatives in Healthcare, a Seattle-based consulting firm specializing in expense management strategies. Previously, he served as one of the top executives at a leading regional GPO that now is a member of MedAssets. Colonna also is a member of Healthcare Purchasing News’ editorial advisory board. HPN