Flevy Management Insights Case Study
Human-Centered Design Strategy for Administrative Services Firm in Healthcare


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TLDR A healthcare admin services org faced declining client retention and rising costs due to outdated processes and competition from tech startups. By adopting a Human-Centered Design Framework and undergoing Digital Transformation, it boosted client satisfaction, cut operational costs by 15%, and increased retention by 20%, underscoring the value of prioritizing client needs.

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Consider this scenario: An established administrative services organization, focusing on the healthcare sector, is encountering barriers in enhancing client satisfaction and operational efficiency through outdated processes that lack a human-centered design approach.

The organization is facing a 20% decline in client retention rates and a 15% increase in operational costs, attributed to inefficient service delivery and client management systems. Externally, the organization is up against growing competition from tech-driven startups offering more personalized and efficient administrative solutions. The primary strategic objective is to overhaul its service design and delivery model to prioritize client needs and preferences, thereby improving client retention and reducing operational inefficiencies.



This administrative services organization has reached a critical juncture where its traditional approaches are no longer sustainable amidst the rapidly evolving healthcare sector. The absence of a human-centered design in its service delivery has been identified as a key contributor to its declining market position and operational challenges. Addressing this core issue is imperative for the organization's turnaround and future growth.

Industry Analysis

The administrative services industry within healthcare is undergoing significant transformation, driven by technological advancements and changing client expectations. The introduction of digital platforms and AI for client management and service delivery is setting new industry standards.

Upon analyzing the competitive landscape, we identify:

  • Internal Rivalry: Moderate, with a mix of established firms and emerging tech-driven startups increasing competitive pressures.
  • Supplier Power: Low, due to the abundance of technology and service providers in the market.
  • Buyer Power: High, as clients increasingly demand more customized and efficient services.
  • Threat of New Entrants: High, given the low barriers to entry for tech-based startups.
  • Threat of Substitutes: Moderate, with the potential for technology to replace traditional administrative services.

Emergent trends include the digitalization of services, the rise of personalized client experiences, and the integration of AI for operational efficiency. These trends are reshaping the industry, presenting both opportunities and risks:

  • Adoption of digital platforms offers the opportunity to enhance service efficiency and client satisfaction but requires significant investment in technology and skills training.
  • The shift towards personalized client experiences opens new avenues for service differentiation but demands a deep understanding of client needs and preferences.
  • AI integration can streamline operations and reduce costs, yet poses challenges in terms of data security and privacy compliance.

The PESTLE analysis highlights the impact of technological advancements, regulatory changes, and evolving client expectations as key external factors influencing the industry. Organizations must navigate these dynamics skillfully to remain competitive and relevant.

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Internal Assessment

The organization boasts extensive experience in the healthcare sector and a loyal client base but is hampered by outdated processes and a lack of innovation in service design.

SWOT Analysis

Strengths include deep industry knowledge and established client relationships. Opportunities lie in leveraging technology to enhance service delivery and client engagement. Weaknesses are evident in operational inefficiencies and the slow adoption of digital tools. Threats stem from increasing competition and the rapid pace of technological change.

Core Competencies Analysis

Core competencies should evolve to encompass digital innovation, client-centric service design, and data-driven decision-making. Strengthening these areas can transform service delivery, improve client satisfaction, and drive operational efficiency.

McKinsey 7-S Analysis

Alignment across strategy, structure, systems, staff, skills, style, and shared values is crucial. Currently, misalignments, especially in systems (lack of digital tools) and skills (need for digital literacy and human-centered design expertise), are evident. Addressing these gaps is essential for the strategic transformation of the organization.

Strategic Initiatives

  • Implement a Human-Centered Design Framework: Redesign service offerings and processes to prioritize client needs and preferences, aiming to enhance client satisfaction and operational efficiency. The value creation lies in improved client retention and reduced operational costs. This initiative requires investment in human-centered design training and technology infrastructure.
  • Digital Transformation of Service Delivery: Adopt digital platforms and AI to streamline service delivery and administrative tasks. This will create value by reducing service delivery times and operational costs. Resources needed include technology investment and staff training in digital tools.
  • Client Engagement and Feedback Program: Establish a continuous feedback loop with clients to gather insights and improve services. The intended impact is to foster client loyalty and identify new service opportunities. This initiative will require resources for client engagement tools and analytics capabilities.

Human-centered Design Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated.
     – John E. Jones

  • Client Satisfaction Score: Measures the impact of the human-centered design approach on client satisfaction.
  • Operational Cost Reduction: Tracks cost savings achieved through digital transformation and process optimization.
  • Client Retention Rate: Indicates success in enhancing client loyalty through improved service delivery and engagement.

These KPIs will provide insights into the effectiveness of the strategic initiatives in meeting the organization’s objectives of improving client satisfaction, operational efficiency, and competitive positioning.

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Human-centered Design Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Human-centered Design. These resources below were developed by management consulting firms and Human-centered Design subject matter experts.

Human-centered Design Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Human-Centered Design Implementation Plan (PPT)
  • Digital Transformation Roadmap (PPT)
  • Client Engagement Strategy Report (PPT)
  • Operational Efficiency Improvement Framework (PPT)
  • Financial Impact Model (Excel)

Explore more Human-centered Design deliverables

Implement a Human-Centered Design Framework

The organization adopted the Design Thinking and Value Proposition Canvas frameworks to guide the implementation of its Human-Centered Design initiative. Design Thinking provided a user-centric approach to reimagining service offerings, emphasizing empathy, ideation, and experimentation. This framework was instrumental in identifying unmet client needs and developing innovative solutions to address them. The Value Proposition Canvas complemented this by focusing on aligning the organization's services with the client's pains and gains, ensuring that the redesigned services offered tangible value.

Following these insights, the organization undertook the following steps:

  • Conducted empathy interviews and observations to deeply understand the needs, motivations, and challenges of their clients.
  • Utilized ideation workshops to generate a wide range of solutions aimed at addressing the identified client needs.
  • Mapped out clients' jobs-to-be-done, pains, and gains using the Value Proposition Canvas to align the organization's services with client expectations.
  • Developed prototypes of redesigned services and conducted iterative testing with a small group of clients to gather feedback and refine the offerings.

The implementation of Design Thinking and the Value Proposition Canvas significantly enhanced the organization's ability to deliver services that were both valuable to clients and operationally efficient. Client satisfaction scores saw a marked improvement, and the organization was able to identify several areas for cost reduction in service delivery, leading to a noticeable decrease in operational expenses.

Digital Transformation of Service Delivery

For the Digital Transformation initiative, the organization utilized the Digital Maturity Model (DMM) and the Agile Project Management framework. The DMM helped assess the organization's current state of digital capabilities and identify specific areas for improvement. This framework was crucial for developing a clear roadmap for digital transformation. Agile Project Management then provided a flexible and iterative approach to implementing digital solutions, allowing the organization to quickly adapt to challenges and opportunities that arose during the transformation process.

In applying these frameworks, the organization:

  • Assessed its current digital maturity using the DMM, identifying gaps in digital infrastructure, skills, and processes.
  • Set clear, measurable goals for digital transformation, prioritizing initiatives that offered the highest value to clients and the organization.
  • Adopted Agile methodologies to manage digital transformation projects, organizing cross-functional teams into sprints to rapidly develop, test, and refine digital solutions.
  • Implemented feedback loops with clients and staff to continuously improve digital services based on real-world use and experiences.

The adoption of the Digital Maturity Model and Agile Project Management frameworks enabled the organization to successfully navigate its digital transformation, leading to a significant reduction in service delivery times and operational costs. Moreover, the agility afforded by these methodologies allowed the organization to remain responsive to client needs and industry trends, positioning it as a leader in digital innovation within its sector.

Client Engagement and Feedback Program

To enhance client engagement and systematically gather and act on client feedback, the organization implemented the Net Promoter Score (NPS) and Customer Journey Mapping frameworks. NPS provided a straightforward metric for measuring client satisfaction and loyalty, making it easier to track improvements over time. Customer Journey Mapping offered a detailed understanding of the client's experience with the organization's services, identifying key touchpoints where improvements could enhance satisfaction and engagement.

With these frameworks in place, the organization proceeded to:

  • Implement an NPS survey across all client interactions to regularly measure client satisfaction and identify areas for improvement.
  • Map out the entire customer journey for its key services, identifying moments of friction and opportunities to exceed client expectations.
  • Use insights from the Customer Journey Mapping to redesign service touchpoints, making them more intuitive, efficient, and responsive to client needs.
  • Establish a cross-functional team responsible for monitoring NPS results and implementing initiatives to address client feedback.

The implementation of the NPS and Customer Journey Mapping frameworks significantly improved the organization's client engagement and retention rates. The focused efforts on enhancing client experiences at every touchpoint led to higher NPS scores and positive feedback from clients, demonstrating the value of a systematic approach to client engagement and feedback management.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Client satisfaction scores improved significantly, reflecting the positive impact of the Human-Centered Design approach on service perception.
  • Operational costs were reduced by 15% through efficiencies gained in service delivery and administrative processes.
  • Client retention rates increased by 20%, reversing the previous decline and indicating enhanced client loyalty.
  • Service delivery times were reduced by 30%, demonstrating the effectiveness of digital transformation initiatives.
  • Net Promoter Score (NPS) results showed a substantial improvement, indicating higher client satisfaction and loyalty.

The strategic initiatives undertaken by the organization to implement a Human-Centered Design Framework, undergo Digital Transformation, and enhance Client Engagement have yielded significant positive outcomes. The improvement in client satisfaction scores and the reversal of the decline in client retention rates are particularly noteworthy, directly addressing the organization's primary objectives. The reduction in operational costs and service delivery times further underscores the success of these initiatives in enhancing operational efficiency. However, while these results are commendable, the journey towards digital transformation and client-centric service design is ongoing. The rapid pace of technological change and increasing competition from tech-driven startups present continuous challenges. The organization's initial reluctance to adopt digital tools and processes may also indicate underlying cultural or skill-related barriers to change that could impede future progress.

To build on the current momentum, it is recommended that the organization continues to invest in technology and staff training, with a particular focus on emerging technologies that could further enhance service delivery and client engagement. Additionally, fostering a culture of innovation and agility will be crucial to adapt to the fast-evolving healthcare sector. Establishing partnerships with tech startups could also offer new avenues for innovation and differentiation. Finally, regular reassessment of the organization's strategic alignment with industry trends and client expectations will ensure that it remains competitive and continues to deliver value to its clients.

Source: Human-Centered Design Strategy for Administrative Services Firm in Healthcare, Flevy Management Insights, 2024

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