Our customer has experienced some natural challenges in parallel with their growth agenda as costs have continued to rise whilst the organisation started to fall behind some of its competitors in terms if the digital transformation agenda and patient proposition. They desired to retain its market leadership position but also continue to grow revenues and overall market share.
Through 2023, patient numbers and revenue continued to grow broadly in line with the growth of the private healthcare market following the pandemic and the inability of the NHS to fulfil with historically high levels of demand. Despite several substantial improvement initiatives however, our customer overall market share remained relatively flat, if even suffering a mild decline. It was felt that perhaps they were falling behind the competition in terms of service offering and ease of doing business with, both from a patient and consultant partner perspective and needed additional support to maintain and build upon it market position.
As a response, the organisation’s leadership team commissioned the development of a new strategy, centred around technology-driven operational improvements. In order to meet this ambitious new strategy, the Board made a significant financial commitment to a 5-year programme of change including the transition to a new IT operating model.
As with many enterprises adopting such and ambitious programme of change, they faced with delivering the existing portfolio of transformation initiatives whilst also having to establish how it would support this new portfolio. Not only did this present a challenge in terms of alignment across the different programmed and projects, but also alignment in terms of resource allocation across multiple interdependent projects.
Secondly, with the Board signing-off on the agenda, there was significant time pressure to launch a series of new value streams as part of a transition to a new IT Target operating model (ITOM). The initiation of the new value stream, and the transition to the new ITOM naturally served as a significant distraction to the ongoing programme delivery function.
Thirdly, there was a fundamental lack of capacity and capability within the organisation to deliver the scale and complexity of change demanded by the business. The IT / change organisation was not resourced sufficiently to support the delivery of the existing change portfolio, transition to the new value stream structure and IT operating model whilst also initiating the programmes under the new agenda. They suffered from legacy ways of working in an organisation with relatively low turnover and a lack of fresh approaches and thinking around IT delivery. Like many businesses, there was a sentiment that the IT function was holding the business back from modernising the way it delivered care.
Therefore, the organisation needed to find a way to reconcile the current change portfolio with the new IT transformation agenda whilst also designing and embedding the new IT operating model and required external expertise to support this.