Al Cleinman's Blog

At What Stage is VSP?

Recent articles in the eyecare press have reported that the American Optometric Association (AOA) ruffled the feathers of VSP and the National Association of Vision Care Plans by suggesting to a senator instrumental in the currrent health care reform debate that stand-alone vision plans are aiming to "turn back the clock by continuing to segment vision from eye health," and said such plans are "seeking to impose misguided limits on the care that our patients—especially children—receive."

Logically, reaction to those statements was aggressive.  After all, it doesn't take a rocket-scientist to recognize that, with optometry's increased scope of practice and their inclusion in most medical plans, such stand-alone plans may have run the course of their usefulness to anyone but the plans promotors and owners.

A follow-on joint statement issued by the AOA and VSP after their recent meeting said "both organizations are committed to expanded access to eyecare," and that both "recognize the importance of including provider non-discrimination provisions that will safeguard patient access to optometric care in any health-care bill."  AOA president Randy Brooks, O.D. said some statements in the earlier AOA/AAO letter may have been misinterpreted.  Brooks said the AOA would "never do anything to compromise existing vision care," noting "we're not against stand-alone vision plans."

Logically, reaction to the AOA's statement by the the Managed Vision Care industry was strong.  With VSP and their breathren being major contributors to various association activities, it's logical that they used their political clout to soften the AOA's position.  Afterall, money talks.

Yes, consider whether it really matters whether the AOA is against stand-alone plans or not.  Are Providers, who represent the key ingredient of both the AOA's and VSP's success, fed up with low reimbursments and arrogant unilateral actions by the likes of VSP?  Are Providers at the stage where they are sick and tired and near the point where they're not going to take it anymore?  What's really going on here?

Perhaps there's a roadmap for what's been unfolding for VSP over the past number of years.  I find it in Jim Collins' latest volume of management thinking, How the Mighty Fall ... and Why Some Companies Never Give In.  This great read begins with Collins recalling the advice of his mentor, Stanford professor Bill Lazier: "Don't try to come up with the right answers; focus on coming up with good questions." And certainly that describes Collins' achievement in this book. The question of why leading companies, seemingly in possession of every competitive advantage, so often manage to blow it is surely a good one.

Collins provides the five stages of a company's demise:

1. Hubris born of success
2. Undisciplined pursuit of more
3. Denial of risk and peril
4. Grasping for salvation
5. Capitulation to irrelevance or death

I've often said that the questions are far more important than the answers.  Have you read the book?

Norm and Bo...You had me at Hello!

I just bought Norm Brodsky's and Bo Burlingame's new book, The Knack...How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up.  Having met these two wonderful authors in a serendipitous way(see my post of May 3, 2008), I was excited to dig into their latest offering.  It took me all the way to the middle of page two to recognize that this book is a winner.  I share the excerpt:

"One of my best habits, for example, grew out of my father's practice of breaking down problems and challenges into their basic components.  He believed that most issues in business -- and in life -- are fundamentally simple, even though they appear complicated at first.  He taught me that, to deal with them, you have to examine the underlying elements and figure out what's really going on.  Never assume, moreover, that the real issues are those that you see on the surface.  That way of thinking has been one of my most powerful business tools over the years."

Norm Brodsky has very effectively communicated a fundamental that has served me well.  First, I purposely practice what might be termed a bit of "schizophrenia."  What I mean by this is that I enjoy debate, with myself and my team, which results in looking at issues from every possible angle.  This can be somewhat frustrating to my team, as they sometimes find me arguing against what they thought was my own position.  I find it very effective to verbalize both sides of any position.  I feel strongly that passionate debate is a very powerful tool in arriving at good decisions and this methodology has served me well.

Equally as important, Norm strongly advises that often the real issues are not those on the surface.  We find this the case in many of our consulting projects...what the client believes is the issue is simply not.  In my opinion, the hallmark of a good advisor is one who forces the client to dig below the surface of an issue.  Giving a client exactly what they want when they've self-diagnosed their challenge is easy.  Helping the client see below the surface and face the underlying issues that are the root cause of a challenge requires experience, courage and understanding.  However, the rewards are worth the effort. 

Don't take either the first solution or the one that comes easy...it may lead to ineffective results or worse.  Oh...and buy this book!