2. Health of Australians
2
1 in 2
Australians do not get enough exercise to
maintain their health.
AIHW 2017
1 in 2 Australians reported having at least 1
of 8 chronic conditions
AIHW, 2016
Top 8: cancer, cardiovascular disease,
mental health conditions, arthritis, back
pain and problems, chronic obstructive
pulmonary disease, asthma and diabetes.
Mental illness is the largest cause of disability in
Australia
ABS, 2007
Two thirds of people with anxiety / depression
will have had their first episode before 21 years
of age
ABS, 2007
1 in 2 Australians experience a mental
health condition in their lifetime
ABS, 2009
Population distribution: Australia
54% of people with mental illness do not access
any treatment
AIHW, 2014
63% of Australians are overweight /obese.
This is projected to climb >80% by 2025 if we
don’t do anything.
AIHW 2017
3. Customer Centricity and Innovation in Health
3
Could the healthcare sector accelerate
innovation by engaging with consumers
as co-creators?
42% of Australian consumers rated our
healthcare system as Excellent or Very
good compared with 62% of doctors
EY: Consumer-patient and staff experience at the center Australia insights report November 2018
4. Innovation is more than a side show
Innovation is no longer a side show – it is the way to do business in the
21st century and a key driver of sustainable growth
The Corporate Start up, (Tendayi Viki, Dan Toma, Esther Gons)
This is an era where innovation is undeniable:
Companies need to change or they will be changed
5. Resource challenges to innovation
5
Traditional investment requires hockey stick style return projections
Shareholder expectations; often results in internal focus on the core
The only way to allocate resources is to deallocate them
Businesses are not traditionally good at stopping things
Availing resources to establish to a business case often requires one
Innovation de-prioritisation
6. Organisational obstacles to Innovation
6
From <https://hbr.org/2018/07/the-biggest-obstacles-to-innovation-in-large-companies>
Responses
0% 30% 60%
Politics/ Turf wars/ No alignment
Cultural issues
Inability to act on critical signals or developments
Lack of budget
Not adopting emerging technologies
Lack of executive support
Inability to catch critical signals or developments
Lack of CEO support
Other
8. The climate change deniers
8
‘They can see the changes
happening in the business
world, but deny their relevance
to the company’
The Corporate Start up
9. The Naysayers
9
Mr and Ms No – keen to
maintain things as they are
Prefer certainty and control
Fear career risk
11. Innovation - an adaptive challenge
Ronald Heifetz describes two types of challenges in
change – Technical and Adaptive
• Have known solutions
• Use existing know how
• Resolved though authorised expertise, structures
and procedures
• Addressed through changes in peoples priorities,
beliefs, habits and loyalties
• Requires learning
11
Adaptive Challenges
Technical Problems
12. Innovation and collaboration
12
An adaptive challenge takes time and often a cultural shift – must be solved by people and requires
collaboration, has long term outcomes- it’s the long but rewarding game!
Three C troll’s which kill collaboration :
• Control
• Competition
• Commitment
The Australian Leadership Paradox
Geoff Aigner and Liz Skelton 2013
13. Innovation – from the Inside Out
13
You cannot outsource your adaptive change– it’s a process that needs
to be solved by your people to be repeatable and sustainable
A holding environment consists of all those ties that bring people together and
enable them to maintain their collective focus on what they are trying to do (Heifetz et al.,
2009).
Build your holding environment for lasting system
change
14. Innovation Council (growth board concept) –senior and cross
functional
Set innovation priorities and themes
Language and methodology – share a common framework and
reference points
Learn from others: Execs and Boards from non competitive
innovative companies
Alignment from the top
14 *deloitte.wsj.com/riskandcompliance/2018/12/11/digital-innovation-how-board-oversight-can-keep-pace/>
‘The ability to “think digitally” is a success factor for boards and executive teams
alike, which must now exercise oversight in ways that reflect current modes of
innovation and business challenges’
Deloitte 2018
15. The exploration framework(s)
15
Innovation lends its self to methods used in digital product development - rapid prototyping and
testing, actual user feedback and successive iterations:
The viability of a business case is then likely to be far more accurate than without this
experimentation
Benefits include:
Demonstrating how this differs from the more traditional approaches of going straight
from concept to project
Assist where the scope is unclear and ambiguity high (as is common in innovation)
Speed up discovery, reduce cost and risk through techniques such as design
thinking, lean start up and agile methods
17. Find, Quote and Book – concept to prototype
17
• Concept was to build a valued connection between Medibank, customer and providers
• Used a design thinking approach to customer and provider workshops
• Explored the capabilities and what was important to build vs partner
Developed a
prototype for deeper
testing and iteration
18. Find, Quote and Book – the MVP
Soft launch of MVP features with our Members Choice Advantage dental network with a continuous
monitor, test and learn based on customer and provider feedback
19. Release is planned late May – small test and learn
with Medibank Specialists prior to further iteration
Provider Portal – the MVP
19
Key to creating connectivity for improved provider experience, advocacy and self service
Concept was tested with Practice
Managers to determine what was
most attractive for them to use
Feedback from
subsequent practice
manager session was
used to iterate
20. The Learnings
20
Aircover – for example an Innovation Council
Diplomats the individuals who will do the hard work of corporate politics
and smooth the path for innovation projects. They are well connected and
respected – who can call in favours and get things done
Showcasing- builds momentum
Detractors- don’t spend too much time trying to convince – work through
established lines or your Aircover
Find ways to align with internal processes without being drawn into
bureaucracy – some will be excited and others will see it as nebulous and
off script
Build holding environment – some safe space to progress, The Corporate Start Up
refers to
21. Balance Grit and Neutrality
21
Balanced with neutrality regarding if the idea will progress–
it’s more about the opportunity
Importance of grit & the right employee psych profiles
(interest + effort)
Determination that it will not be process that kills the
concept
22. Summary and Conclusion
Innovation is important –
Healthcare needs
transparency and customer
centricity
Embedding an innovation
culture is an adaptive
challenge
Move from Inside Out:
• Build your holding
environment
• Take small steps and build
momentum
22