healthcare in the new reputation economy becker's may 8 · healthcare in the new reputation...

5/4/2015

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This is a confidential ProMedica document. You are prohibited from duplicating or otherwise disseminating any of the information contained herein.

HEALTHCARE IN THE NEW

REPUTATION ECONOMY

KAREN STRAUSS – CHIEF STRATEGY, MARKETING AND HR OFFICER

May, 2015


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It takes 20 years to build a reputation

and five minutes to ruin it. If you think

about that, you’ll do things differently.

– Warren Buffett

“”


Our Agenda

� Reputation is undeniably an Organization’s Most Valuable Asset

� There’s an Art and Science of Reputation Management

� Putting Reputation Management into Practice

� Case Studies - A Tale of Two Challenges

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Notable Reputational Crises

• British Petroleum advertises “being green”. April, 2010, Deepwater Horizon drilling rig exploded. 11 killed. CEO resigns after making insensitive remarks “I would like my life back”. Found “grossly negligent”; spent $43 billion to-date

• Google aficionados believe/love the “Do No evil” mantra. Then, self-censoring in China, a $500M legal settlement with the U.S. Justice Department to avoid prosecution on charges that it knowingly accepted hundreds of millions of dollars in illegal ads from Canadian online pharmacies… is it time for a new slogan?

• Texas Presbyterian Hospital and Ebola.

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Reputation and Financial Implications

Dow Jones Industrial Average

+72%

BP Stock

-11.7%

April 2010 (Oil Spill) – May 1, 2015


…It’s never been a worse time to have bad news circulate

about your organization.

…It’s never been a better time to have good news circulate

about your organization.

• “If it is clear that there is a crisis breaking about your organization, I think to have a benchmark of a response within 15 minutes is a good target to have,” “Many organizations are not geared up to hit that, but if it gets to more than an hour, then you really are behind the eight ball.” Jonathon Hemus-Insignia Communications

SOCIAL MEDIA:A CHANGE IN PERSPECTIVE

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Brand & Reputation Framework

Government

Investors

Community

Employees

Customers

Company/Organization

Products/Services

Values

Words Actions

Prices Channels

MarketingCommunications

REPUTATION

BRAND


The language of reputation

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Identity: that which is central, distinctive and enduring about a company

Image: the reflection of the organization’s identity from the vantage point of one constituency

Reputation: collective images. How all constituencies view the organization. Built up over time

The fluctuating value of the company’s reputation is its reputational capital

Reputational risk is the range of possible gains and losses in reputational capital for a given firm


Reputation Management Goal

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Reputational

Capital

Reputational

Risk

BUILD MITIGATE+

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Where is ProMedica on the reputation management journey?

Agree: We don’t

have a structured process for

implementing reputation

management into our business planning

88%

n=25

Reputation Institute model


Reputation: A Marketplace Reality

1

1

79%Agree that we are competing

in a Reputation Economy

20%Say they are ready to take advantage of it

but

only

Integrating Reputation Into Decision-Making Is Still A Major Challenge

Source: 2013 Reputation Institute, Reputation Leader Study (Based on responses from leaders at 292 of the world’s largest and most influential companies)


Reputation Leadership Priorities

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Reputation Business Impact for ProMedicaReputation is a critical input for strategic and business planning

0

%80%

Competitive differentiation

Improve crisis management and post crisis recovery

Top talent acquisition and retention

Support entry into new markets

Ability to collaborate/partner with key opinion leaders or policy makers

1

2

3

4

5

n=25

Question Text: Where do you see a strong Corporate Reputation having a business impact on your company?

Please select the top three.

Source: Reputation Diagnostic among ProMedica Board Members, Executives, Marketing & Communications Department


But, how to execute?


Media MonitoringLagging Indicators vs. Leading Indicators

0%

8%13%

0%

45%

34%46%

20%

35%

0%

10%

30%

54%

72%

52%

100%

45%36%

0%

25%

50%

75%

100%

January February March April May June

Re

lativ

e V

isib

ility

Visibility Negative Neutral Positive

• Bay Park Hospital data breach

• Sexual assault jeopardized Flower's access to Medicare, Medicaid

• ProMedica’s Diabetes Center opens

• ProMedica kicks-off “March for Babies”fundraising campaign

• Volunteers with 4-wheel drive come to the aid of health workers

• ProMedica’s plan to move its headquarters to Downtown Toledo

• ProMedica Innovations Conference and Partnership with Cleveland Clinic

• More coverage of the downtown relocation

Me

dia

Co

ve

rag

e T

on

ali

ty

n = 12n = 18 n = 63 n = 78 n = 33 n = 74

• Sixth Circuit strikes down St. Luke joinder case

• Bay Park Hospital notifies patients of data breach

Source: Q1 – Q2 2014 ProMedica media coverage

Methodology: RI coded Q1-Q2 articles, taking into consideration length of article and prominence of ProMedica within article, prominence of dimension within article, and tonality associated with each dimension

Note: Due to visibility weighting, ProMedica has a higher relative visibility in June as compared to March despite a slightly smaller article count.

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Social Media Monitoring


The seven dimensions of the RepTrak® system broadly define what impacts our perception of any particular organization. They are the rational, actionable components behind reputation.

Dimensions

FEELING – ESTEEM – ADMIRATION – TRUST

These four ideas define reputation in the marketplace – serving as the foundation of any stakeholder’s emotional bond with the organization. Together they create a 0 –100 Reputation Pulse score that has been validated by academics and is used by marketing and communication practitioners worldwide.

Reputation Pulse

The REPTRAK® ModelA Framework for managing complexity


The REPTRAK® ModelSeven Drivers Explain the Emotional Bond

PRODUCTS & SERVICES:Delivers consistent, high-quality healthcare services that are a good value

PRODUCTS & SERVICES:Delivers consistent, high-quality healthcare services that are a good value

INNOVATION:Adapts quickly to changes in the healthcare industry

INNOVATION:Adapts quickly to changes in the healthcare industry

WORKPLACE:Has excellent physicians and clinical staff and rewards employees fairly

WORKPLACE:Has excellent physicians and clinical staff and rewards employees fairly

PERFORMANCE:Is financially stable and shows strong prospects for future growth

PERFORMANCE:Is financially stable and shows strong prospects for future growth

LEADERSHIP:Is a well-run organization with strong and appealing leadership and a clear vision for its future

LEADERSHIP:Is a well-run organization with strong and appealing leadership and a clear vision for its future

CITIZENSHIP:Has a positive economic impact on the communities in which it operates

CITIZENSHIP:Has a positive economic impact on the communities in which it operates

GOVERNANCE:Is an open and transparent organization that behaves ethically (“walk the talk”)

GOVERNANCE:Is an open and transparent organization that behaves ethically (“walk the talk”)

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Applying the Reputational Lens @ ProMedica

Shading reflects quantity

of mentions about a given dimension

COVERAGE HEAT MAP KEY:Rather than placing too much emphasis on stories focused on citizenship dimension, tie communications more directly to the full spectrum of Community & Patient expectations

Source: Q1 – Q2 2014 ProMedica media coverage

ProMedica Media Coverage

ProMedica media coverage well-aligned to Community & Patient expectations

ProMedica media coverage missing the mark on Community & Patient expectations

Reputation Dimension Drivers for Patients and the Community


Neutral

Positive

Negative

Dimension Coverage Tonality Top Headlines

Products & Services

Tonality Key

Leadership

Governance

Innovation

ProMedica Toledo Hospital

merits awards for clinical

excellence and patient safety

ProMedica planning to

move headquarters to

downtown Toledo

6th Circuit Agrees With

FTC And Strikes Down

Ohio Hospital Merger

ProMedica Bay Park

Hospital investigates

patients' privacy breach

ProMedica conducts

research of non-

invasive treatment

2013 brings

renovations, technology

upgrades, accolades

Fostoria hospital is

adding Orthopedic &

Rehab Center

Area Healthcare CEOs

share insights on a

dynamic year ahead

n = 62

n = 48

n = 10

n = 68

DimensionCoverage Tonality Top Headlines

Applying the Reputational Lens @ ProMedica


ProMedica’s Customized ScorecardPro-active opportunities to build reputational capital across all stakeholdersReputational

Capital

BUILDBUILD

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STRUCTURING A PROCESS/SYSTEM For Reputation Management


Risk Identification & Monitoring(Which risks are out there?)

Source: ProMedica Major Announcement Timeline (as of 072514)

Reputational

Risk

Mitigate


Factors related to likelihood of occurrence/visibility and

reputational impact

• How likely is the issue to happen?

o Somewhat likely to happen

o Very likely to happen

o This is definitely going to happen or is happening

• How high will news media visibility be for this issue?

o Not at all

o Low

o Medium

o High

• What impact?

Reputational

Risk

MitigateMitigateAssessment of Risks

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Likelihood of Occurrence, Visibility

Re

pu

tati

on

Im

pa

ct

Need a plan

that’s on-the-

shelf and ready-

to-go

Potential noise

to consider

All hands on deck

with transparent

corrective actions

Requires

everyday

operational

attention

HI

HILow

Reputational

Risk

MitigateMitigateAssessment of Risks


• Get all internal stakeholders together

o HR, Communications, Legal, Operations, Leadership, etc.

• Define the problem

• Gather relevant information

• Own the issue

• Apologize

• Execute a practical plan that mitigates the problem, minimizes the damage, and offers concrete steps to rebuild confidence among those directly impacted

Reputational

Risk

MitigateMitigateCrisis Management Process


n = 409 Note: Showing individual touchpoints with highest experience recall within each influencer channel grouping

Direct Experiences

What You Say/Do

What Others Sayabout You

• Received Care

• Talked to a HCP or

Employee

• Website

• ProMedica

HealthConnect

• Social Media

• Patient Advocates

• News Media

• Support Groups

INFLUENCE CHANNELS TOP RECALL

• All Clinical

• Human Resources

• IT

• Population Health

• Advocacy

• Philanthropy

• Public Relations

• Communications

• Marketing

• Strategy

• Clinical

• Human Resources

• IT

• Population Health

• Advocacy

• Philanthropy

• Public Relations

• Communications

• Marketing

• Strategy

PROMEDICA FUNCTIONAL & SERVICE UNITS

Operations and communicationsTeamwork is Essential

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Case History: The Tale of Two Challenges WHERE IT WORKED …

Community Hospital• Rape case at psych unit

• Hospital leadership, public relations, HR, legal, operations, all collaborated on strategy

– Owned the issue IMMEDIATELY

– Apologized

– Took aggressive/expensive actions to prevent from happening again

• Result: News cycle and reputational impact minimized


Community Hospital• Employee stealing syringes from sharpies; looking at

patient records; no financial information taken

• Different internal team: more conservative … do what is legally necessary; at first didn’t think it was a big deal since no financial info was breached

• Nuance missed: Should have contacted the local sheriff even though nothing legally wrong

• Result: News cycle and negative media extended by 6 – 8 weeks … Much longer for community hospital to recovery reputation

Case History: The Tale of Two Challenges WHERE IT DIDN’T WORK…


“

How Much is your Reputation Worth?

Who steals my purse steals trash … But he that filches from me my good name, robs me of that which not enriches him, and makes me poor indeed.

”– William Shakespeare

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THANK YOU

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