Do you know why your company exists?
If you answer is something like to provide high quality medical services or to provide a specific type of solution to the healthcare industry, you’re telling me about your company’s what – not the why.
The why is the reason the company was founded and continues to exists. The why embodies the company’s beliefs about those that it serves and reflects the values that guide how the company operates.
I reviewed an investor report on One Medical recently that had a really wordy description of why the company exists. It made me wonder whether the company is loosing touch with their why or if the why was just lost in translation.
Most people are familiar with the company so it seemed like a good example to explain the differences between why – what – how and the value of focusing on why.
1/ Why: The founder, Tom Lee MD believed waiting 29 days [the average wait time in the US] to see a primary care physician was unacceptable. So the company’s core belief or in other words, there why is timely service is most important to their customers and members.
2/ What: One Medical found customers willing to pay a premium for on demand access to care. Employers and those without an established relationship with a primary care physician were willing to pay the premium.
3/ How: The company solved the wait problem by incorporating nurse practitioners and technology into their service so that most if not all of their members are seen within 24-48 hours of scheduling an appointment. They also increased the length of the appointment to minimize the risk of wait times on the date of service.
Growth + Profitability
The why has defined the company and is the reason existing customers and members value the company. As the company enters new markets and partnerships, the management needs to consider:
1/ Do other populations value timely access to care as much and are they willing to pay a premium for it?
2/ Are they able to modify the how without sacrificing the why to achieve long term growth and profitability?
It will be interesting to see how the next chapter turns out.