Sunday, November 17, 2013

Success Measured By Votes Vs Success Measured By Profits: LinkedIn Comment About ACA

A comment I posted on LinkedIn to an article, "CEO Lessons from Obamacare" by Mohamed El-Erian, CEO of PIMCO:
A successful roll out does not mean the product will be successful with customers. In the corporate world, CEO implementation failure is different than marketplace failure. Many products have met all internal steps yet failed with customers due to pricing, competition, or product acceptance. The reverse also happens, such as Apple's initial iPhone antenna problems, where despite a major failure, the product succeeds. Successful products are measured by revenues and profits and not internal corporate processes.

Unfortunately for the ACA, it has numerical targets for young adults enrolled, for uninsured and for Medicaid enrollment. Unfortunately for US citizens, the ACA is a legislated program and legislated programs almost never go away even if they do not succeed in meeting their goals.

The ACA mandates insurance and eliminates many insurance policies that were previously purchased. Whether justified or not, the government is acting as a monopolist. The choice left for those that want a different product or the choice not to buy is to voice their unhappiness. Voicing about the ACA in the political arena is partisanship, Republicans vs Democrats, Liberal Democrats vs Moderate Democrats. Voicing is also voting at the polls.

In the corporate world, there are revenue and profit measurements. In the political, legislative world there are votes. The strategies used to increase revenues and profits are different than the strategies used to increase and retain votes. Part of the difference in the management of the ACA roll out versus a corporate product roll out reflects the difference between success measured by revenue and profit and success measured by votes.

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