Ep. 110: Mitch Perry - Business Transformation (in the Context of Accounting & Finance)

Contact Mitch Perry: https://www.linkedin.com/in/mitch-perry-6111b61/

FULL EPISODE TRANSCRIPT:
Mitch: (00:00)

Thanks for coming back and listening to another episode of Count Me In, I'm your host Mitch Roshong, and this is the 110th episode of IMA's podcast series. Today you will hear from Mitch Perry, CFO for Blue Cross Blue Shield of North Carolina. Mitch is an experienced executive with a demonstrated history of leading effectively across multiple industries, including healthcare, energy, and insurance. In this episode, he talks about business transformation in the context of accounting and finance. Keep listening to hear about some keys, best practices and strategies, for overcoming challenges associated with business transformation.

Adam: (00:47)

Mitch, what is the current nature of business transformations and what do businesses hope to accomplish by going through a business transformation?

Mitch P.: (00:56)

Yeah. Well, thanks, Adam, for that question, it's, it was really timely. For us, we're seeing, you know, a lot of change in healthcare and trying to lead transformation in healthcare, you know, it's at its most basic form, I look at it as a need to be responsive to really what's going on in the marketplace, how rapidly business conditions are changing. What you need to do to, as a company is not only to stay current, but hopefully stay in, stay in the lead. I think about healthcare, maybe even business in general, what we're living through right now with COVID-19, has really underscored, how, how important it is to be ready, to adapt and change and transform to the external market. And what we've seen, to some extent, even gives a little bit of an opportunity to accelerate some of that transformation. I view us as an industry that is transforming right before our eyes, and I see us as Blue Cross, North Carolina as playing a role on helping to transform leading the transformation of health healthcare for the better, in our state. And the way we look at it is largely from an affordability lens that, we got to drive transform ourselves and help transform the system in a way that, is, provides for more affordable healthcare for our customers, and a major way we're doing that is through how we transform our, our payment approach with our provider partners, and you're paying them for, quality and outcomes as opposed to a fee for service. And even though we're a leader, maybe especially because we're a leader, you know, we're doing it from a position of strength, we're making certain that we're focusing on, what we should be doing for the long-term,and it kind of allows us to play offense as opposed to maybe having to react and try to transform from a position of defense later r. You know, the final point I would make on, on this question, Adam is, we have, had really strong momentum with our provider partners and transforming, the payment system before the pandemic, and it really, because of that has allowed us to maintain momentum and even accelerated, some things that weren't initially on the roadmap is, have now allowed us to even go faster. So think in terms of how we're able to add telehealth, into what we're, in, into what we're really, completing as part of our transformation, structure, and then, you know, how we're working and bringing our primary care along as well. So it really, put us in a position to not only be strong coming into it, but to maybe even go faster through it.

Adam: (04:13)

So I think you've given us some great examples of how you've been able to have a successful transformation. What are some of the keys that you've been able to apply to make it a successful transformation?

Mitch P.: (04:23)

Yeah, and Adam, I will acknowledge, that, you know, we are, in the middle of this and maybe all businesses are at some stage in the middle of transformation, but, you know, the good news is I think I've got some really timely, feedback, but there's also the reality that we learn and learning every day. You know, one of the things I think about is, innovation is important. I think sometimes when you talk about transformation, people think about innovation and clearly there is an aspect of that, but I think about it as, as being more than about innovation, I think about it as execution the really the most critical part. I don't know if you've had exposure to John Doerr, a very successful investor with Kleiner Perkins. He was late investor, Google, Amazon recently, Door Dash, and, I've heard him say before, that ideas are easy execution is everything. And it really hits home for me that, yeah, it's, it's great to have all these great ideas, but there are a lot of great ideas, you know, really the key to success is can you execute on those ideas? And so with that, you know, I've done a little thinking around what are some successful events and, you know, almost think about it like a little bit of a recipe. This recipe happens to have six items. I will say I'm a pretty simplistic baker. Six items is quite, quite a bit, but transformation has some complexity to it, and I think six probably makes sense and they all happen to begin with the letter C. So hopefully they're easy to remember, but not the six c's. The first one is courage. I think it takes courage to make changes to the status quo. You have to have energy to continue to be curious. You have to find ways to take measured risks so that you move forward without putting too much of your existing model at risk. The second is, communication. You know, I'd say it starts at the executive level, but it has to go all the way through the organization. Being clear about what you're driving towards, you know, what we're trying to achieve, why it's better, you know, why, you know, not just trying to make a change for change sake, but why it makes sense for what we're doing. The third is collaboration, and I think what we're doing with our provider partners provides, or will a good example of that. transformation requires partnerships. I don't think there's really any way to do it effectively unless you deal with partnerships, whether they be internal partnerships or external. And I think it's important that you invest the time is early. She can, and your transformation process there to build those partnerships so that you can get some early wins and you can withstand the challenges later, and where in, you're able to pick up momentum as you, as you move. The fourth, is change management and, you know, I think about change management as being almost a process to itself. You have to be purposeful. We all understand that, as an organization and as individuals, we embrace change differently. We have different risk tolerances, but important, that you're able to, bring everyone along. And there's no way to do that, I think, but to be purposeful around kind of how you, how you work through the organization and when you're doing it outside the organization, how you work outside the organization to make certain, everyone has a common understanding. The fifth, and this one may become a little more obvious given the, for the fact that the four score probably has some complexity to them, but it is commitment. I'd like to say that you have to be patient, but you also have to be persistent. You can't change momentum overnight. There will be setbacks. There will be opportunities for people to say this doesn't work, but you have to make certain that you've got the commitment and fortitude to continue to move forward even during the challenges. And the final one, which I really think underpins them all is culture. And, you know, the culture of blue cross North Carolina is going to be different say than ...