Inside the transformational mindset
That health care is undergoing a period of transformation is by now well-known fact among industry professionals. It is especially well known by Startup Health, whose director of strategic partnerships Katya Hancock shared with attendees of the Drug Store News/Mack Elevation Future Leaders Summit the mindset innovative companies seeking to transform health care all share in common.
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Startup Health, launched five years ago, partners with health technology startups, offering coaching, community, promotion and access to a global network of investors and customers. Now is a uniquely fruitful time for organizations looking to innovate in the healthcare space, Hancock explained.
To better illustrate the moment in which health care finds itself, Hancock discussed economist Joseph Schumpeter’s idea of creative destruction, which outlines the cycle of innovation and growth of business. A new industry emerges and witnesses some type of innovation, which sparks growth. Once growth plateaus, the business moves from “status” to “depleted industry.” This last state is where Hancock says health care finds itself right now.
“That moment of creative destruction where new industries are born — that’s where what we call ‘healthcare transformers’ are coming into health care,” Hancock said. “They’re coming in with new companies [and] new business models and disrupting the entire industry. And it’s a moment of opportunity for folks in the incumbent industry to partner with those organizations.”
Hancock outlined 10 traits that transformation-minded companies have in common:
Transformation is a CEO priority: Transformation begins at the top, and the head of the company needs to be committed to the task of transformation.
Long-term commitment: Companies with transformational mindsets must be committed for the long haul.
Self-awareness: Leaders at transformational companies are coachable and comfortable listening rather than talking.
Open collaboration: “If you have the stagnation mindset, you think you’re going to build everything internally,” Hancock said. “The transformational mindset realizes it’s a big world out there, and others might have a better idea than [you].”
Eliminate friction: Companies that work to constantly remove internal barriers to progress are better equipped to figure out new solutions — sometimes that means failing fast.
Defining team and process: Rather than simply appointing a person to head up innovation, it must be incorporated into the larger business plan.
Sense of urgency: “Sales cycles can be 12 to 18 months, but innovation is happening faster than that,” Hancock said.
Lead versus follow: Transformational companies are not content to wait for someone else to develop a solution.
Active with startups: Is your company simply dabbling in transformation or has it established relationships with startups trying to transform the industry?
“Batteries included:” People leading transformation-minded companies provide energy to their team, rather than draining it. “Don’t just say no, tell them why not. Give them feedback,” she said.