1. Jason Reese – “The Pivot”
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LinkedIn Profile | Professional Experience Summary
The following describes a recent professional experience that demonstrates my strategic thinking, problem
solving and management capabilities. While it is specific to the healthcare sector, it is indicative of many other
similarly successful efforts I led while running a Congressional Office in Washington, D.C., as a management
consultant with McKinsey & Company, and in engagements across numerous sectors.
The Pivot | Using Disruptive Innovation to Reorient an Organization
CHALLENGE My boss, the CEO of a mid-size healthcare management services provider, faced a seemingly
unsolvable problem.
His once-thriving company was at a standstill. Its primary expertise was in helping hospital systems
conceptualize and open new outpatient surgery centers. With the market for outpatient facilities close to a
saturation point and the economy in a downturn, new builds were at a halt and unlikely to bounce back.
The company’s profitable niche was quickly disappearing. Its core business was on life support. Despite the
circumstances, the organization—populated largely by those who had grown up in the industry—was
reluctant to change.
The CEO’s senior executive team periodically went through the motions, attempting to brainstorm ways to
pivot existing capabilities towards new market opportunities more conducive to growth. But the team
routinely came up empty. Absent any clear answers or ideas, it seemed as though they had given up—content
to wait and hope for the best.
With struggling business results and a senior team that was stumped, the CEO was in despair. After 30 years
leading healthcare businesses through all sorts of challenges, he worried this one just might be unsolvable.
FRESH PERSPECTIVE As a newcomer to a company dominated by individuals with years of clinical operations
experience, I was a bit of an outlier. I represented a new generation within the organization whose expertise
was outside the operating room. In an industry where the ‘insiders’ had seemingly failed, I had been recruited
as an ‘outsider’ for my ability to critically analyze the business and strategically align it to improve financial and
operational results—as I had done before in turning around a US Congressional office in Washington, DC and
helping numerous clients as a management consultant with McKinsey & Company. Now my boss seemed in
need of those skills more than ever.
I knew something was up when the CEO uncharacteristically approached me one day and asked me to join him
for lunch. Over hamburgers he shared his frustrations about the organization’s inability to move away from
our shrinking core business and find new, more profitable uses for our skills and expertise. He also let me
know that he had been receiving some preliminary interest from a private equity group eager to diversify their
portfolio by buying a company in the outpatient healthcare space.
It became clear as the conversation went on that the only way to ensure the company’s successful sale was to
develop new products and platforms that would significantly improve our growth trajectory. By the end of the
meal, he asked me if I would try my hand at solving this problem that had confounded his most senior
deputies.
2. Jason Reese – “The Pivot”
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DIAGNOSIS Given my outsider’s perspective as someone unencumbered by the way things had always been
done, I came into this daunting task with a clear perspective on what I felt were my organization’s
undervalued assets that could be leveraged to harness growth opportunities in other fields.
In my perspective, the company had three unique competencies:
deep relationships with a broad network of large health systems across the country;
clinical expertise that was equally applicable in the inpatient and outpatient markets; and
a deep data set generated from years of opening and operating healthcare facilities.
I knew that properly packaging and monetizing these three core assets would be key to successfully building
new products and services that would enable us to thrive.
But while these ingredients were clear, the recipe by which they be could successfully combined to create
offerings that were salable in the marketplace was not.
So, after developing a deeper understanding of my organization’s key capabilities, I hit the road to meet with
some of the company’s longtime clients. I wanted to get a more nuanced understanding of their needs and of
what services we might be able to develop to address them. I listened closely. In meeting after meeting, I
heard variations on the same critique of my organization: our legacy on-the-ground management services
were largely taken for granted and often viewed as a short-term solution until the hospitals themselves
developed the capacity to provide those services in-house. We had become a commodity.
However, in nearly every meeting, often towards the end, the health system executive asked some variation
of the same question - “Do you know of anyone who might be able to help us understand and benchmark our
operational performance relative to industry standards?”
A light bulb went off immediately.
SOLUTION After taking inventory of our core competencies and listening deeply to those in the
marketplace whose needs were unmet, I set about trying to build a suite of products and services that could
become our platform for growth.
While my organization provided on-site management services in markets from New York to Hawaii, we did
very little to capture and synthesize the byproducts of all of that physical work. We generated tons of
information and data. We could tell you the average time needed to conduct almost any procedure, how
much you should be getting paid for it, and how frequently certain categories of your patients cancelled their
appointments. But we were a management services company at heart. We did very little to package and sell
our intellectual property.
My listening tour had convinced me that what our target customers were craving wasn’t the physical
management that we had provided for years, but rather a suite of consulting services that could help them to
successfully navigate the full lifecycle of their facility…on their own!
In partnership with one of our larger clients, I formed a consulting team and sold our first engagement. We
worked directly with the client to understand their experience with the common challenge of trying to
manage a facility in an area with a less-than-favorable payer mix. Over six months, we worked to distill all of
3. Jason Reese – “The Pivot”
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the operational benchmarks that my organization had generated and used them to inform the creation of a
robust model that was customized to meet their specific needs.
The results were breathtaking. In an industry where management was often directionally correct but
imprecise, we gave the client the opportunity to manage their cost structure and profitability down to fifteen
minute increments of a single doctor’s time.
When we finished the engagement the client was not just left with a sizable and complex model, but one that
they could continue to customize to their evolving needs. The customer was so impressed that they hired us
to come back and replicate our work for another division within their health system. What’s more, they
thought the model was so powerful that they boasted about it to a number of their competitors—generating a
sales pipeline that was finding us, rather than vice versa.
The engagement became the first of a number of products that we created to exploit the need for an
operational benchmarking and consulting platform. In an industry whose new-starts had dried up, we quickly
learned how ripe it was for an offering that wasn’t focused on the beginning of a facility’s lifecycle, but rather
on increasing its profitability as it matured.
IMPACT This new business line ultimately became the pivot point for the company that the CEO had
hoped for. Our new consulting platform became the growth engine of the organization, opening up a number
of new revenue streams, all of which had significantly higher margins and greater growth potential than the
legacy management business that it increasingly replaced.
Based on this new growth trajectory, the CEO was successful in closing a deal to have the company acquired
by a private equity consolidator in the space. It turned out that new owners chose to scrap the core business -
the legacy management services offering - once the two organizations integrated. They invested heavily in
expanding the consulting platform that we had built. The Private Equity investors confided that it was our
innovative consulting platform that had separated us from the other healthcare companies in which they had
expressed a preliminary interest.
CORE COMPETENCIES
1. New Product Development
2. Operationalizing Strategy
3. Disruptive Innovation
SKILLS
1. Active Listening
2. Strategic Thinking
3. Structuring Complexity