Paduda: More About Innovation

Thursday, July 1, 2021 | 0

After re-reading my last rant about the lack of real innovation in workers’ comp, I decided to stop complaining and instead lay out a few recommendations.

Joe Paduda

Think impact, not features and benefits.

The “solution” and vendor selection process starts out way too detailed, down in the weeds instead of up in the strategic clouds. Instead of diving into the minutiae, both buyers and sellers should take a giant step back and focus on the buyer’s strategic goals.

What is the C-suite focused on? What are the top execs worried about? What are their long-term goals?

Only after the vendor really understands those strategic objectives, how they were developed, why they are so important and what the buyer is doing to reach them should the vendor say anything that isn’t a question.

That’s the easy part.

Next, the vendor must build a story around how it will help the buyer meet those strategic objectives. Do not discuss anything that is not directly tied to those strategic objectives. Do not talk about your features and benefits. The buyer does not care.

Things buyers care about may include:

• Reducing the combined ratio.
• Reducing reserves.
• Reducing the administrative burden on staff.

But you won’t know what is important unless you do the really hard work to find out.

What does this mean for you?

To get a buyer to care, you need to know what it cares about — and why.

Joseph Paduda is co-owner of CompPharma, a consulting firm focused on improving pharmacy programs in workers’ compensation. This column is republished with his permission from his Managed Care Matters blog.