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People, Places, Processes & Products that Influence the Supply Chain

 

INSIDE THE CURRENT ISSUE

August 2009

2009 Supply Chain Mavericks

Supply chain’s triple play

Meet 3 professionals who are outliers to the status quo

by Rick Dana Barlow

Before Sen. John McCain (R-AZ) staked his claim on the term "maverick" and draped the unofficial title over his running mate Gov. Sarah Palin (R-AK) during their failed campaign for the presidency, the word conjured up some vivid mental images.

Those visions may include Hollywood actors James Garner, Mel Gibson or Tom Cruise, all of whom starred in television programs or films that liberally used the term because they lived up to it. (Or it was their name or nickname.)

But in the generally conservative, stoic and risk- and change-averse healthcare industry, one might find it particularly hard to spot a maverick – even, if not especially, supply chain management.

Yet, that didn’t stop Healthcare Purchasing News from scanning for those buoys of independent, non-conformist strategies and tactics who weather the storms and conventional thinking while remaining steadfastly afloat.

Mavericks see the possibility for failure and shrug because the potential for success is that much brighter.

So who are these trailblazers that work against the grain, swim upstream, take risks and revel in disruptive innovations to thrust themselves, their facilities, their departments as well as their profession, forward? For the second consecutive year, HPN searched for those who have tried new processes, strategies and tactics, using failure as a slingshot to success.

We asked readers to nominate colleagues, competitors, customers, peers and supervisors by answering the following questions:

1. What makes this person a maverick – his or her overall philosophy and thinking or something he or she did?

2. What did they do that was so innovative?

3. How did their colleagues, superiors, customers and facility react?

From the list of nominations, we selected five to profile, but only three were willing to participate. Following are those three in alphabetical order by last name. What they say, do and have done may be edgy or surprising. They may be inspiring. Read on to know them through this ever-so-brief glimpse into their worlds.


Brent Johnson
Chief Purchasing Officer,
Vice President Supply Chain,
Intermountain Healthcare,
Salt Lake City


Talk to any of the small but growing number of supply chain professionals migrating to healthcare from other industries and you’ll likely engender one of three typical reactions. Either they will quickly, if not eventually, skedaddle kicking and screaming out of the perceived needlessly complex industry, or they’ll coast below the radar and toe the corporate line until something better surfaces or they’ll register disbelief before suspending it and rolling up their sleeves to make improvements they know are possible.

Intermountain Healthcare’s Brent Johnson, who leapt into the healthcare supply chain nearly four years ago with nearly 30 years of industry experience in his repertoire, clearly resides in the third group.

A staunch advocate of strategic sourcing, Johnson knows what works and continues to implement plans to get there, motivating his team and sharing his perspectives with any who will listen and learn.

Pivotal maverick moment: In 1994, as a supply chain leader for an electric utility I was faced with a major problem. The pending deregulation of the electric industry had forced utility executives to entertain cost cutting initiatives of all kinds. We had found it difficult to get cooperation with system-wide purchasing in a company with 10 power plants, six coal mines and service territory in seven states. A consortium of two major purchasing firms had approached our company executives with promises of $50 million of guaranteed savings if purchasing and inventory management would be outsourced to the consortium. Our company executives gave me 90 days to come up with an alternative. It was then that I introduced best practices of supply chain management to the company and said to them, ‘if you will support me as much as you will the consortium, then more than $50 million is available.’ They did support the ‘in-house’ option and we did exceed the savings promised.

Claim to fame: Putting together a world-class supply chain organization at Intermountain Healthcare has been a significant accomplishment, but I didn’t do this alone. With strong support from senior management we combined the best employees within the company with some significant new talent from outside the company and industry. Now with three and a half years experience and a commitment to implement best practices of supply chain in this already great company, significant benefits have been achieved with more to come.

Unlikely source of inspiration: Karl Malone. I love basketball and the Utah Jazz. Twenty-plus years ago, due to my sons’ participation in a Karl Malone basketball camp I played Karl Malone one-on-one for 30 minutes and I have it on video tape to prove it! They don’t make basketball players like Karl Malone any more. Malone, chosen as the 13th pick in the 1985 draft ended up the second-leading all-time scorer in the NBA. Dedicated to keeping himself fit and willing to play every night, even when hurt, he missed only 10 games in 18 seasons. His nickname is the ‘Mailman’ because he always ‘delivers.’ He was dedicated, worked hard, excelled and was a great team player, as evidenced by the success of working with his partner, John Stockton. I would like to be like Karl Malone in my work.

Biggest influence: With a passion for supply chain from only one major company in the electric utility industry I thought I knew a lot. The reality, as to how much I needed to learn, came from working with a very good supply chain consulting company called Denali Consulting for almost three years from 2000 to 2003. Working with some brilliant people I gained exposure to templates, processes, benchmarking, data, best practices and strategic thinking that far exceeded my expectations yet prepared me so well for my future. Additionally, this consulting experience gave me exposure to many large companies in multiple industries and how best practices of supply chain management can help each.

Two adjectives to describe yourself that also could be applied to a medical device: Contributive and passionate. Just as a medical device contributes to clinical excellence, I believe strongly that supply chain management contributes to clinical excellence via reduced costs and increased quality. And a medical device is passionate about going and going. 

Your closest brush with career immolation: Leaving a traditional job with a traditional company 11 months before the devastating impacts of 9/11 (September 11, 2001). But it turned out to be the best thing that could have happened to me.

A project that turned out differently than you thought it would: I’m a maverick because I challenge the ‘norm’ in healthcare, but I also have great respect for the industry and love working in it. One of my first major sourcing projects at Intermountain Healthcare and in the healthcare industry came when we bid out our largest spend category, pharmaceutical distribution. Trying to duplicate a strong total cost of ownership, level playing field and competitive RFP process that I have done many times in other industries, I uncovered supplier behavior and results that taught me that healthcare is very unique from other industries. Some of the uniqueness is very good and noble, but some of it also adds unnecessary higher costs and complexities to the industry. Now that I understand this uniqueness, I love working in healthcare and love the challenge to take the knowledge and skills that I have to help my company and the industry.


Nancy LeMaster
Vice President Supply Chain Operations,
BJC HealthCare,
St. Louis


As another indu-stry import, BJC HealthCare’s Nancy LeMaster understands the value of "no" – particularly when to say and wield it as well as when to ignore it.

A skilled strategist and tactician with data, LeMaster has demonstrated how to collect, analyze and manipulate numbers to legitimately help her organization improve its supply chain performance for the dual benefit of caring for patients and remaining in business.

LeMaster’s quick to credit her team with BJC’s supply chain success even as she draws the most dedication out of them and streamlines their workflow for optimal results.

Pivotal maverick moment: When I first moved into supply chain operations I attended several professional meetings where I observed that there appeared to be two broad schools of thought regarding the industry. The first spent a lot of time focused on the problems, barriers and shortcomings of the industry. The second, which was a much smaller group, was focused on possibilities and potential. I made an immediate commitment that I wanted to be part of the group that would create the future state and change the current landscape.

Claim to fame: The ability to look at issues from all sides and help groups find the common ground.

Unlikely source of inspiration: My staff. I’m fortunate to work with a very talented group of people that keep me energized and challenged. I’m especially inspired when I see how hard our buyers and material handlers work to make sure our physicians and clinicians have the products they need to provide high quality care. A quick walk through a patient care division always leaves me feeling very fortunate that I’m part of the healthcare system.

Biggest influence: My grandfather Walter Appenzeller. He was a living testament to the power of combining hard work and a positive attitude. He thrived on change and saw potential in every person and situation. He overcame significant financial- and health-related challenges that would have left many bitter and discouraged. His ability to embrace life with courage and grace is something I’ll always try to emulate.

Two adjectives to describe yourself that could be used to describe a medical device: Minimally invasive and reliable.

Your closest brush with career immolation: Early in my career I put together a meeting of orthopedic surgeons from across our hospital system. I thought we’d just get together and ‘talk about issues.’ I had not done a good job of thinking through exactly what I wanted out of the meeting, nor had I done any pre-work to manage expectations. The meeting quickly got out of control, and my boss had to step in and manage the situation. He was very patient with me but made sure I understood you never bring together a group – especially surgeons – without a robust agenda and a lot of pre-work!

A project that turned out differently than you thought it would: Like many organizations, BJC has begun utilizing Lean/Six Sigma tools to drive performance improvement and transformation initiatives. I anticipated the tools would help us get better results but never expected the magnitude of the results or the way the staff would embrace the process. The price exception team reduced errors 75 percent and have established a whole new level of collaboration and communication that has had a positive impact on day-to-day operations. The distribution team has undertaken three complex projects that will drive significant productivity and customer service improvements. The team now thinks in terms of process and metrics and has aggressively worked to eliminate silos and barriers.


David Reiter, M.D., MBA, FACS
Associate Chief Medical Officer,
Thomas Jefferson University Hospital,
Professor of Otolaryngology-Head & Neck Surgery (Facial Plastic & Reconstructive Surgery), Jefferson Medical College, Philadelphia


Physicians carry a certain stigma about them as stereotypically profiled by the typical supply chain management professional. They spend a lot of money, make a lot of noise – particularly if they don’t have their own toys – and overexert their influence even when a facility is hamstrung by reimbursement woes and cash flow concerns.

Thomas Jefferson University Hospital’s David Reiter, M.D., MBA, FACS, however, shatters that mold and likely represents one of supply chain management’s most powerful allies in clinical circles and a strong believer in value analysis.

With a sharp wit that wins raves, Reiter recognizes and embraces the balancing act he must master on a daily basis. A Six Sigma green belt, he jokes of being the customer relationship management guy who has to wear the Kevlar vest if he says "no" in those contentious product evaluation committee meetings.

A no-nonsense guy who advised a supply chain crowd at the Healthcare Information and Management Systems Society (HIMSS) in Chicago in early April that medical evidence not only should be used to improve clinical outcomes but supply chain management operations, too. "You don’t have to succeed at first or every time," he said. "Failure is okay so long as you have more successes than failures."

Pivotal maverick moment: Learning that the first million-dollar deal I dreamed up to align the interests and efforts of the hospital and my medical staff colleagues by improving care, reversing an operating loss in a clinical program and increasing medical staff reimbursement, succeeded on all counts.

Claim to fame: Having gained the respect of hospital administration and senior management without losing the respect of the medical staff.

Unlikely source of inspiration: The blues. "Whatever it is you like to do, as long as it gets you through, make sure nobody gotta suffer through, when you do your personal thing." by Larry Garner, a long-time friend and Louisiana Blues Hall of Fame member. "Negative attitudes like a fire that’s burning all the things you should be learning. And positive attitudes help you in growing towards the things you should be knowing." by Little Feat, Gordon DeWitty and Sam Clayton.

Biggest influence: Walt Kelly [creator of the comic strip] "Pogo." "We have met the enemy and he is us."

Two adjectives to describe yourself that also could be applied to a medical device: Updated and improved.

Your closest brush with career immolation: Pushing a physician colleague so hard to change his position that he exploded angrily at me at a meeting in our executive boardroom.

A project that turned out differently than you thought it would: Trying only to get our Product Review Committee to adopt objective criteria for evaluation of new products and ending up as leader of the entire Value Analysis process at our institution.