Stakeholder Engagement in Healthcare: A Case Study of Alberta Blue Cross, Assignments of Organization Theory and Design

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Assignment #1: Stakeholder System: Alberta Blue Cross University of Fredericton: MBA Prof. Todd Johnson January , 2024

Contents

• Overview of the Organization.........................................................................................................
• Stakeholders, Requirements, and Performance Measures...............................................................
  • Customers.....................................................................................................................................
  • Workforce....................................................................................................................................
  • Suppliers and Partners..................................................................................................................
  • Society or Community.................................................................................................................
  • Investors.......................................................................................................................................
  • Natural Environment....................................................................................................................
• Stakeholder System.........................................................................................................................
  • Inter-relationships between stakeholders.....................................................................................
• Leverage Points and Recommendations........................................................................................
  • Analysis of stakeholder system..................................................................................................
  • Key leverage points....................................................................................................................
  • Opportunities for improvement..................................................................................................
  • Recommendations for improvement..........................................................................................
• References......................................................................................................................................

Superior service quality and affordability are the cornerstone needs for Alberta Blue Cross customers. They measure success through high customer satisfaction ratings, ensuring excellence in service provision. Retaining over 80% of their customers annually signifies the value they offer, reflected in the customer retention rate. Ultimately, the company's ability to align service costs with customers' budgets speaks volumes about its cost-effectiveness, ensuring accessibility and customer-centricity. Workforce Alberta Blue Cross highly values its workforce, aiming to provide fair compensation, growth opportunities, and a secure work environment. They strive for competitive salaries, performance- driven incentives, and a robust benefits package to retain top talent. Their dedication to staff development is evident through investment in training programs. Metrics such as turnover rates, satisfaction surveys, and the number of training initiatives help track employee satisfaction, retention, and continuous learning. Alberta Blue Cross aims for a seamless onboarding process within 90 days, maintaining a retention rate of over 90%, and fostering team cohesion with four annual employee referrals. They prioritize skill enhancement through employee competency models, emphasize career progression and offer market-leading compensation for market- competitive pay. Furthermore, they ensure employee welfare with comprehensive benefits, and boost team cohesion through regular social gatherings, reflecting a commitment to employee engagement. Suppliers and Partners Suppliers and partners are integral to Alberta Blue Cross's operations, requiring timely payments, clear communication, and transparent practices. Alberta Blue Cross maintains strong relations by ensuring prompt payments, fostering open communication, and emphasizing transparent business conduct. They track on-time payments, conduct satisfaction surveys, and monitor strategic partnerships to gauge engagement effectiveness. For website developers, achieving 100% deliverables stands key, while meeting commitments defines effective communication. Human resource specialists focus on hitting hiring targets and maintaining an applicant-to-hire ratio. Maintaining a high employee retention rate is crucial, along with timely financial compliance and accurate reporting for legal, accounting, and bookkeeping partners. These efforts reinforce trust and efficiency in the relationships with suppliers and partners.

Society or Community Society holds significant importance for Alberta Blue Cross, expecting active involvement in community welfare through CSR initiatives like donations, volunteer programs, and community engagement. Alberta Blue Cross measures its impact through donation amounts, employee volunteer hours, and community engagement levels. By participating in societal initiatives, the company shows commitment to social responsibility, building trust within the community it serves. Fiscal responsibility is ensured through annual tax filing, ethical practices are maintained by handling incidents ethically, and community support is gauged through impactful volunteer events and charity work, all reinforcing the company's commitment to ethical conduct and community welfare. Investors Investors hold significant sway within Alberta Blue Cross, deeply concerned about financial growth and returns. Their key requirement is the company's ability to generate profitable growth and deliver satisfactory returns on their investments. Performance metrics such as return on equity, earnings per share, and dividend yield are essential benchmarks for them. Their decisions greatly influence the company's strategic direction and success. By fostering a transparent, accountable approach and achieving set financial goals, Alberta Blue Cross aims to maintain a positive relationship with investors, ensuring financial sustainability and growth. Investors' decisions heavily impact the company's strategic direction and success, making it crucial for Alberta Blue Cross to maintain transparency, accountability, and strong financial performance to secure their continued support. Natural Environment Alberta Blue Cross acknowledges the natural environment as a crucial stakeholder, aiming to minimize its environmental impact and promote sustainability. Efforts include reducing energy use, implementing waste reduction strategies, and adhering to environmental regulations. The

suppliers and partners form an inter-dependent relationship with Alberta Blue Cross, as they provide essential resources and collaborate to improve service offerings. Society, as a stakeholder, not only influences the organization through its societal, ethical, and environmental expectations, but also serves as a customer and employee base. Lastly, the natural environment is affected by the organization's activities, highlighting the importance of adopting sustainable practices. Understanding and managing these inter-relationships is crucial for Alberta Blue Cross to effectively address stakeholder needs and maintain a sustainable and successful operation. Leverage Points and Recommendations In analyzing the stakeholder system for Alberta Blue Cross, several key leverage points have been identified. These leverage points represent areas where changes or improvements can have a significant impact on the overall performance of the organization. The first leverage point is the relationship between the workforce and the customers. By ensuring that employees are trained, motivated, and equipped with the necessary resources to meet customer needs, Alberta

Blue Cross can improve customer satisfaction and loyalty. Another leverage point is the collaboration between the organization and its suppliers and partners. By developing strong relationships and clear communication channels, Alberta Blue Cross can enhance the quality and efficiency of its services. Additionally, leveraging the influence of society and the natural environment can lead to greater corporate social responsibility and sustainability practices. These leverage points present opportunities for improvement and growth for Alberta Blue Cross. Analysis of stakeholder system An analysis of the stakeholder system reveals the complex interrelationships between the different groups. The customers are at the center of the system, as their needs and requirements drive the organization's activities. The workforce plays a crucial role in meeting these customer needs and ensuring a positive experience. Suppliers and partners provide the necessary resources and support for Alberta Blue Cross to deliver its services effectively. Society, represented by government agencies, regulators, and the general public, influences the organization through policy changes, societal expectations, and public perception. The natural environment has a significant impact on Alberta Blue Cross, as it must consider sustainability practices and minimize its ecological footprint. Understanding these interrelationships is essential for effective stakeholder management and organizational success. Key leverage points Leverage points denote specific junctures within a business framework where a slight adjustment can trigger widespread changes (Meadows, 1999). When employing Meadows' twelve leverage points, identifying the precise leverage point and steering it in the correct direction becomes crucial. In the context of Company X's system, pivotal leadership decisions and smoothly operating feedback loops, where outputs feed into operational inputs, necessitate accurate information and up-to-date data. The stakeholder system of Alberta Blue Cross highlights several key leverage points that can drive improvements. One crucial leverage point is the relationship between the organization and its workforce. By investing in employee training, development, and well-being, Alberta Blue Cross can enhance productivity, job satisfaction, and employee retention. Another key leverage point is the collaboration between the organization

 Embrace sustainability at the core of operations by implementing eco-friendly policies, reducing waste, and championing environmentally conscious initiatives.  Create effective customer feedback mechanisms like surveys and focus groups to consistently improve service quality based on customer preferences and evolving needs.  These initiatives aim to elevate stakeholder satisfaction, build lasting relationships, and drive long-term success in improving overall well-being and healthcare experiences for stakeholders at Alberta Blue Cross. References

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   3. Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge, UK: Cambridge University Press.
   4. Clarkson, M. B. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92-117.
   5. Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.
2. Corporate Finance Institute (CFI. (2022), Stakeholder. Retrieved on April 17th, 2022 from https://corporatefinanceinstitute.com/resources/knowledge/finance/stakeholder/. Meadows, D. (1999). Leverage Points: Places to Intervene in a System. The Sustainability Institute Read Online and Download PDF at: http://donellameadows.org/archives/leveragepoints- places-to-intervene-in-a-system/