Flevy Management Insights Case Study
Telehealth Expansion Strategy for Healthcare Providers in North America


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Workplace Productivity to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A prominent healthcare organization specializing in telehealth services faced declining patient engagement and rising operational costs due to inefficiencies in service delivery. By modernizing its digital infrastructure and implementing Lean Six Sigma, the organization achieved a 25% increase in operational efficiency and a 20% improvement in patient engagement, highlighting the importance of aligning technology with strategic objectives.

Reading time: 9 minutes

Consider this scenario: A prominent healthcare organization specializing in telehealth services is facing challenges with workplace productivity amid a rapidly evolving digital health landscape.

The organization has experienced a 20% decline in patient engagement rates over the last quarter, coupled with a 15% increase in operational costs due to inefficiencies in service delivery and administrative processes. External pressures include heightened competition from burgeoning telehealth startups and changing healthcare regulations that impact service reimbursement and patient privacy. The primary strategic objective of this organization is to enhance workplace productivity and operational efficiency to improve patient engagement and reduce costs.



This healthcare organization, a leader in telehealth services, is at a critical juncture. The decline in patient engagement and rising operational costs suggest underlying issues in workplace productivity and service delivery efficiency. Amidst a digital health transformation, the organization must recalibrate its strategy to stay competitive and meet evolving patient expectations.

External Analysis

Telehealth is experiencing unprecedented growth, driven by technological advancements and changing patient preferences. However, this growth brings new challenges and competitors to the forefront.

Examining the competitive landscape reveals:

  • Internal Rivalry: High, as established healthcare providers and new entrants vie for market share in a rapidly expanding telehealth sector.
  • Supplier Power: Moderate, with a relatively small number of technology platform providers catering to a growing number of healthcare organizations.
  • Buyer Power: High, given patients' increasing options for telehealth services and their growing expectation for convenience and quality.
  • Threat of New Entrants: High, due to low barriers to entry for digital-first startups offering niche telehealth services.
  • Threat of Substitutes: Moderate, with in-person healthcare services still being preferred by some patient demographics.

Emerging trends include the integration of artificial intelligence for diagnostics and patient management, and a shift towards value-based care models. These trends signal:

  • Increased demand for personalized telehealth experiences, creating opportunities for differentiation but also the risk of lagging behind in technology adoption.
  • Regulatory changes favoring telehealth reimbursement, offering financial opportunities but requiring agility to navigate complex healthcare laws.
  • Technological advancements that can enhance service delivery, presenting an opportunity to reduce costs and improve patient outcomes, but also requiring significant investment in digital infrastructure.

A STEER analysis highlights significant technological, economic, and regulatory factors shaping the telehealth industry. Technological advancements offer both opportunities and challenges in delivering cost-effective, high-quality care. Economic uncertainties and healthcare policies also impact organizational strategies and patient behaviors.

For a deeper analysis, take a look at these External Analysis best practices:

Strategic Analysis Model (Excel workbook)
Consolidation-Endgame Curve Framework (29-slide PowerPoint deck)
Porter's Five Forces (26-slide PowerPoint deck)
Market Entry Strategy Toolkit (109-slide PowerPoint deck)
PEST Analysis (11-slide PowerPoint deck)
View additional Workplace Productivity best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Environmental and Internal Assessment

The organization operates in a dynamic environment, with strong capabilities in delivering telehealth services but facing challenges in operational efficiency and technological innovation.

A MOST Analysis reveals the organization's mission aligns with the growing demand for telehealth, but operational strategies need refinement to improve productivity and service quality. Strengths include a strong patient base and brand reputation, while weaknesses are seen in adapting to technological changes and managing operational costs.

A Gap Analysis identifies discrepancies between current operational capabilities and the desired state of efficiency and innovation required to lead in the telehealth market. Addressing these gaps is crucial for enhancing workplace productivity and patient engagement.

A Distinctive Capabilities Analysis suggests the need for improvement in digital innovation, patient-centric service design, and operational agility to maintain a competitive edge.

Strategic Initiatives

Based on the insights from the external and internal analyses, the following strategic initiatives are defined to be pursued over the next 12-18 months :

  • Digital Infrastructure Overhaul: This initiative aims to modernize the technological platform to enhance service delivery and operational efficiency. The expected value includes improved patient engagement and reduced service delivery costs. Required resources involve investments in technology and training for staff.
  • Workplace Productivity Enhancement: Focus on optimizing administrative processes and leveraging technology to free up medical staff to spend more time on patient care. This initiative is expected to lower operational costs and improve patient satisfaction. Resources required include process reengineering expertise and technology solutions for workflow management.
  • Patient Engagement Strategy Redefinition: Redesigning the patient journey to offer more personalized and accessible telehealth experiences. The value creation comes from increased patient loyalty and engagement, translating into higher service utilization rates. This will require investments in customer relationship management systems and patient experience design.

Workplace Productivity 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

  • Patient Engagement Rate: Measures the effectiveness of the new patient engagement strategies.
  • Operational Cost Reduction: Tracks the financial impact of workplace productivity initiatives.
  • Employee Satisfaction Score: Assesses the impact of new processes and technologies on staff morale and productivity.

These KPIs offer insights into the strategic initiatives' effectiveness, guiding continuous improvement and ensuring alignment with the organization's overarching goals.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Workplace Productivity Best Practices

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

Workplace Productivity Deliverables

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

  • Technology Upgrade Roadmap (PPT)
  • Operational Efficiency Framework (PPT)
  • Patient Engagement Strategy Plan (PPT)
  • Workplace Productivity Improvement Toolkit (PPT)

Explore more Workplace Productivity deliverables

Digital Infrastructure Overhaul

The Value Chain Analysis was selected to guide the Digital Infrastructure Overhaul initiative. This framework, developed by Michael Porter, emphasizes understanding the series of activities that an organization performs to deliver a valuable product or service to the market. It proved invaluable for identifying and optimizing the telehealth service delivery process. The organization meticulously applied this framework to ensure that each segment of the value chain, from initial patient contact to post-consultation follow-up, was enhanced through digital technology. The process included:

  • Mapping out the existing value chain specifically for telehealth services, identifying key activities such as patient intake, consultation, follow-up, and support services.
  • Assessing each activity for digital enhancement opportunities, focusing on areas where technology could significantly improve efficiency and patient experience.
  • Implementing targeted digital solutions, such as automated patient intake forms and AI-driven diagnostic tools, to optimize these key activities.

Another framework that was instrumental is the Balanced Scorecard, which helped align the digital overhaul objectives with the organization's broader strategic goals. This approach ensured that technological enhancements contributed not only to operational efficiency but also to patient satisfaction, employee engagement, and financial performance. The implementation steps included:

  • Developing a Balanced Scorecard that linked digital infrastructure improvements to specific metrics in patient outcomes, operational efficiency, employee satisfaction, and financial performance.
  • Setting targets for each metric that reflected the desired impact of the digital overhaul.
  • Regularly reviewing progress against these targets to ensure the initiative remained aligned with the organization's strategic objectives.

The results of implementing these frameworks were transformative. The Value Chain Analysis ensured that digital enhancements were precisely targeted to improve service delivery and patient experience. Meanwhile, the Balanced Scorecard provided a comprehensive view of the initiative's impact, confirming improvements in patient engagement, operational efficiency, and financial performance.

Workplace Productivity Enhancement

For the Workplace Productivity Enhancement initiative, the organization employed the Lean Six Sigma framework. Lean Six Sigma focuses on reducing waste and improving process efficiency, which was crucial for addressing the identified operational inefficiencies. The use of this framework was pivotal in streamlining administrative processes and enhancing the productivity of medical staff. The implementation process involved:

  • Conducting a comprehensive review of existing processes to identify non-value-adding activities that could be eliminated or automated.
  • Applying Six Sigma tools to analyze process variations and identify root causes of inefficiencies.
  • Implementing solutions, such as process automation and re-engineering, to eliminate waste and reduce variation, thereby improving consistency and quality of service.

The Resource-Based View (RBV) framework was also applied to ensure the organization leveraged its unique resources and capabilities to improve workplace productivity. This perspective helped in identifying internal strengths, such as proprietary technology and skilled staff, that could be optimized to enhance productivity. The steps taken included:

  • Identifying key resources and capabilities that provide a competitive advantage in telehealth service delivery.
  • Aligning these resources with the productivity enhancement initiative to ensure they were fully leveraged.
  • Developing training programs to enhance staff skills in using new technologies and processes, thereby maximizing the value of these resources.

The combination of Lean Six Sigma and the Resource-Based View frameworks led to significant improvements in operational efficiency and employee productivity. Processes were streamlined, reducing administrative burdens on medical staff and enabling them to dedicate more time to patient care. Furthermore, leveraging unique organizational resources enhanced the effectiveness of these improvements, contributing to a more productive and engaged workforce.

Patient Engagement Strategy Redefinition

Utilizing the Customer Journey Mapping framework, the organization redefined its Patient Engagement Strategy to offer more personalized and accessible telehealth experiences. Customer Journey Mapping allowed for a deep understanding of the patient's experience, from initial awareness to post-treatment follow-up, highlighting areas for improvement. The organization followed these steps:

  • Mapping out the entire patient journey for telehealth services, identifying key touchpoints and moments of truth that influence patient satisfaction and engagement.
  • Gathering patient feedback at various stages of the journey to identify pain points and areas for enhancement.
  • Implementing changes based on this feedback, such as simplifying the appointment booking process and providing more personalized follow-up care.

The Service-Dominant Logic (SDL) framework was also applied, emphasizing the co-creation of value with patients and viewing telehealth services through the lens of service rather than a transaction. This shift in perspective was critical for developing a more patient-centric engagement strategy. Implementation involved:

  • Identifying opportunities for patients to actively participate in their healthcare, such as through shared decision-making and feedback mechanisms.
  • Enhancing communication channels to facilitate more effective patient-provider interactions.
  • Developing educational resources to empower patients, making them active participants in their healthcare journey.

The redefinition of the Patient Engagement Strategy through Customer Journey Mapping and Service-Dominant Logic frameworks led to a marked increase in patient engagement and satisfaction. By focusing on the entire patient journey and fostering a more collaborative relationship, the organization was able to create a more personalized and engaging telehealth experience.

Additional Resources Relevant to Workplace Productivity

Here are additional best practices relevant to Workplace Productivity from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

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

  • Modernized digital infrastructure resulted in a 25% increase in operational efficiency, enhancing service delivery.
  • Implementation of Lean Six Sigma reduced administrative process time by 30%, allowing medical staff more patient interaction time.
  • Patient engagement rates improved by 20% following the redefinition of the patient engagement strategy.
  • Operational costs decreased by 15% due to streamlined processes and better resource utilization.
  • Employee satisfaction scores rose by 10% as a result of reduced administrative burdens and enhanced workplace productivity tools.

The strategic initiatives undertaken by the healthcare organization have yielded significant improvements in operational efficiency, patient engagement, and cost reduction. The modernization of digital infrastructure and the application of frameworks such as the Value Chain Analysis and Balanced Scorecard have directly contributed to these outcomes, demonstrating the importance of aligning technological enhancements with strategic objectives. The use of Lean Six Sigma and the Resource-Based View framework successfully addressed operational inefficiencies, highlighting the effectiveness of combining process improvement methodologies with an emphasis on leveraging organizational strengths. However, while patient engagement rates improved, the increase was not as high as anticipated, suggesting that further enhancements in patient experience and engagement strategies may be needed. Additionally, the initial investment in digital infrastructure and training posed financial challenges, underscoring the need for careful financial planning in future initiatives.

Given the results, it is recommended that the organization continues to invest in technology that enhances patient experience and operational efficiency. Further research into patient needs and preferences should guide the development of more personalized engagement strategies. Additionally, exploring partnerships with technology providers could mitigate financial risks associated with digital infrastructure investments. Continuous training for staff on new technologies and processes will ensure that the organization maximizes the benefits of its strategic initiatives. Finally, a more detailed analysis of patient feedback and engagement metrics should be conducted to identify specific areas for improvement in the patient journey.

Source: Telehealth Expansion Strategy for Healthcare Providers in North America, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Telecom Workforce Productivity Enhancement

Scenario: The organization is a mid-sized telecom operator in North America struggling with lagging workforce productivity.

Read Full Case Study

Workplace Productivity Enhancement in Education Sector

Scenario: A firm operating a network of charter schools across the United States is facing challenges in enhancing Workplace Productivity among its administrative and teaching staff.

Read Full Case Study

Global Security Solutions Strategy for SMBs in Cybersecurity

Scenario: A small to medium-sized business (SMB) operating within the cybersecurity sector is confronting significant challenges related to Workplace Productivity.

Read Full Case Study

Efficiency Enhancement Initiative in Life Sciences R&D

Scenario: The organization is a life sciences company specializing in biotechnology research and development, facing a stagnation in productivity despite increasing R&D investments.

Read Full Case Study

Operational Productivity Strategy for Independent Film Production Company

Scenario: An independent film production company, specializing in documentary and feature films, is experiencing a decline in productivity due to outdated production processes and a highly competitive market.

Read Full Case Study

Workplace Productivity Strategy for Technical Consulting Firm in North America

Scenario: A leading technical consulting firm in North America is experiencing a decline in workplace productivity, impacting its competitive advantage and revenue growth.

Read Full Case Study

Innovative Strategy for Virtual Reality Arcade in Recreation Industry

Scenario: A burgeoning virtual reality (VR) arcade firm is confronting dwindling workplace productivity amidst surging demand in the recreation sector.

Read Full Case Study

Global Market Penetration Strategy for Luxury Watch Brand

Scenario: A renowned luxury watch brand is experiencing a plateau in productivity despite its prestigious market position.

Read Full Case Study

Productivity Optimization Strategy for Dairy Farms in Animal Production

Scenario: A medium-sized dairy farm is grappling with declining productivity amid fluctuating milk prices and rising feed costs.

Read Full Case Study

Operational Efficiency Strategy for Automotive Parts Manufacturer

Scenario: An established automotive parts manufacturer is facing challenges related to productivity within its operations.

Read Full Case Study

Operational Excellence Strategy for Telecom Provider in Southeast Asia

Scenario: A leading telecom provider in Southeast Asia is experiencing a decline in productivity due to outdated infrastructure and processes.

Read Full Case Study

Productivity Enhancement Strategy for Non-Profit Organizations in Education

Scenario: A mid-sized non-profit organization specializing in educational programs faces significant challenges in maintaining workplace productivity due to limited resources and high operational demands.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.