Supply chain’s triple play
Meet 3 professionals who are outliers to the status quo
by Rick Dana Barlow
B efore 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.
 
|