Read this article about Blue Cross Blue Shield of Michigan, one of our finalists, in the category Best Achievement of Operational Excellence in Healthcare, selected by the independent judging panel, for the 2019 Business Transformation & Operational Excellence Industry Awards program. Click here to read articles on other finalists.

Early in the decade, Blue Cross Blue Shield Michigan (BCBSM) faced rising competition in a challenging and uncertain industry landscape — the Affordable Care Act significantly changed the regulatory and market environments, competition from large, for-profit insurers was increasing, and the rising cost of care was a growing burden for individuals and employers. These developments created threats to BCBSM’s market position, but also presented opportunities to strengthen its competitive position and the company’s performance. In response, BCBSM embarked on an enterprise transformation centered around three areas of emphasis:

• Understanding customers and their interactions with BCBSM to identify ways to delight them with consistently exceptional experiences
• Developing a deep understanding of core business processes and diagnosing problems to develop and implement improvements to drive operational efficiency and effectiveness
• Creating the energy, skill and commitment in employees and leaders to deliver sustained excellence, with a customer focus
  
  
  
  

The results of the transformation were impressive – more than $1 billion in total business value delivered, consistently exceeded targets, and double-digit improvements. Behind the astounding results, is the vision of a leadership team that understood the critical importance of blending Customer Experience, Operational Excellence and Corporate Culture – not as three initiatives, but as inseparable parts of the transformation itself – all aligned with the organization’s Mission, its core customer commitment and its social mission.

The BCBSM mission is to be its members’ trusted partner, providing affordable, innovative products that improve their care and overall health. Doing this with a relentless customer-focus, BCBSM aspires to clear and simple communication, that helps members make the right choices for themselves and their families. Therefore, the ultimate measure of success is customer satisfaction. Since 2014, BCBSM has measured this with its annual Member Score – a single metric that scores the entire member experience through “Easy, Useful, Enjoyable.” Despite rising member expectations, and an increasingly complex health care environment, the BCBSM Member Score has remained steady – an impressive achievement, evidenced by the organization earning the 2018 J.D. Power and Associates for “Highest Member Satisfaction among Michigan Commercial Health Plans.”

Because BCBSM is a non-profit mutual company, it holds itself to standards beyond its financial performance – the primary objective of for-profit organizations. Stable finances are critical to effective operation and sustainability, but since BCBSM is owned by its policyholders, there are no traditional shareholders within its stakeholders, so it is able to serve a broader social mission as well. BCBSM leads efforts in Michigan to address the opioid crisis, and BCBSM has contributed $355 to the Michigan Health Endowment Fund over the past four years and made a total commitment of $1.56 Billion to this fund, to improve the health of all citizens of the state.

Through its operational excellence, BCBSM has not only transformed its own culture to ensure sustainable customer-focused, excellence-driven business operations, it has strengthened its ability to expand access to quality health care for all, address unique health needs of diverse populations and enable sustainable communities.