Porsche Consulting’s roots lie in the automotive industry, but the parallels between sports car production and the service sector are by no means distant. In more than 300 banking, insurance, and healthcare projects, tested industrial methods have demonstrably raised efficiency for service providers.
The healthcare system in Germany is efficient and of high quality. It serves as an example for many countries. Constant improvements to treatment and advances in medical technology as well as changing and improved living conditions lay the foundations for longer and healthier lives. But this is also associated with higher costs. Healthcare system expenses in the Federal Republic of Germany are currently around 300 billion euros a year – an increase of nearly 50 percent over the turn of the millennium. The country’s approximately 2,500 hospitals bear around one quarter of these costs. But more than one third of these hospitals are operating at a deficit – despite the introduction of diagnosis-related groups (DRGs). Surveys by Porsche Consulting show that hospital employees spend only around 40 percent of their time on their core activity – treating patients. The rest of the time is spent on administration. Restructuring here could help everyone – patients, personnel, and hospital operators.
- How can sustainable structures be created to set hospitals on a profitable basis for the long term?
- What strategies effectively increase performance?
- How can gross margins be raised despite tightly defined framework conditions?
- How can value addition be increased in medical areas?
- How can costs be reduced while ensuring equally good or even better patient care?
- How can hospital administration help to increase efficiency?
Strategies and solutions
Our expert team with particular strengths in analysis and implementation has supported hospitals and clinics in raising revenues and reducing costs in more than 100 projects. For the benefit of patients – and for better health.
To increase turnover, hospital employees work together with the Porsche consultants to optimize admissions and occupancy management and to add more services. One example is to expand the range of optional services. The expert team has also developed a tool known as “Optimize,” which enables potential to be rapidly and efficiently identified.
The project guidance provided by the Porsche consultants is very intensive, and extends from analysis to implementation. Well-founded numerical analyses, interviews, and on-site observation of processes are means that have proven themselves in more than 100 hospital projects. The consultants have best-practice solutions at hand, which they adapt precisely to hospitals’ individual needs. IT instruments and benchmarking databases are also available. Typical areas include: OP (“OP check”), emergency admission, intensive care unit, functional departments, ward organization, medical documentation, and layout planning (“layout check”) as well as internal logistics (“logi-lean”).
Although many hospitals already consolidate their purchasing, rapid success can be achieved by reducing procurement costs. The focus is on establishing a clear item group strategy that streamlines the range, invites new bids, and renegotiates contracts. To determine the right number of employees for individual hospitals, the experts from Porsche Consulting perform personnel requirement calculations. Different methods are employed that produce a neutral picture: such as a bottom-up workplace method, top-down orientation with InEK reference analyses, and benchmarking using the instrument “Compare”. The experts also check the right ratio of insourcing to outsourcing, for which they have developed a method known as “Rightsourcing.” It is used in the areas of laundry, food services, cleaning, laboratories, guesthouses, fleets, maintenance, and writing services. If investment decisions are to be made, it is also important to draw up comprehensive business cases for evaluation.
To ensure future viability, it is necessary to analyze future developments on the market. Porsche Consulting supports its clients in generating the right strategy as well as a five-year plan. The “Growth” instrument is used for this purpose. Rigorous implementation is ensured by continuous change management plus close involvement by the employees. The Porsche Consulting Academy also offers suitable qualification programs for clients. In addition, the consultants provide support for changing organizational structures, mergers, and defining hospital information systems (HIS).
Financial services are exerting considerable influence on the development of prosperity worldwide. On account of their economic import, financial service providers attract far more public attention than do most other industries. More regulations, changes in customer behavior, and new competitors are causing banks, savings banks, and insurance companies to examine their business models at ever more frequent intervals. Despite the wide range of products and market conditions, these service providers are facing similar tasks and questions.
- How can we make optimum use of capacities, simplify control processes, and increase transparency at the same time?
- Which services should we provide ourselves and which are better outsourced?
- Are we aware of customer potential and are our sales departments using it efficiently?
- We anticipate a decline in profits: what means can we use to reduce costs accordingly?
Strategies and solutions
Our team of commercially informed experts has many years of experience in the service sector, but also in the automotive industry. It advises banks, insurance companies, and financial service providers. The consultants examine business challenges from the perspective of the management and the employees. The team supports globally active groups as well as branch offices at individual sites.
Classical organizational structures and operations are still the rule for financial service providers – yet they now hinder business in many ways. This type of organizational form lacks a comprehensive view of the process as seen in the end by the customer. Improvements generally only focus on individual process steps, which in turn can lead to extra work for other departments. The experts from Porsche Consulting therefore take an overarching view of the organization and processes. And by the way – companies do not have to do everything themselves. The automotive industry successfully outsources 80 percent of its value addition to external partners. Financial service providers can also derive clear benefits from consolidating repeat tasks such as data input at shared service centers. Together with clients, our consultants put restructuring projects such as these successfully into practice.
In the past, financial service providers have been able to accommodate rising personnel and material costs comparatively well. However, the current low-interest period is compelling them to take a more intensive look at these and other costs. This pays off. Companies that lower IT operational costs and optimize their overall processes, for example, generate rapid and substantial success. With our operational excellence programs, effects are also lasting.
Growth can be generated not only as a result of acquiring new customers and markets. Another promising approach is to make better use of existing customer potential. Whether customers wish to purchase a financial product or take out an insurance policy, first-class service – online as well as offline – is the key to new business. The Porsche consultants support banks and insurance companies in creating a unique service experience for their customers. To do so, all points of customer contact are defined and carefully controlled. This generates a high level of customer loyalty and excellent quality service.
More regulations usually also mean greater complexity. When companies address new legal requirements with only short-term measures, this can lead to the negative result of inefficient structures. Those that no longer wish to put their valuable energy into ad hoc actions integrate the regulations systematically into their existing organizational forms. The experts at Porsche Consulting support their clients in doing so, and also provide them with tools to increase transparency.