Categories
Business Ethics

Affordable “Snare” Act: ObamaCare Website Fails to Launch

Something’s on the roast, but it’s not Thanksgiving turkey. After a complete failure in its official launch last month, Obamacare’s HealthCare.gov is under tremendous public criticism. Will this project burn to a crisp, or is there a way to salvage it?

Signed into American legislation on March 23rd, 2010, the Patient Protection and Affordable Care Act is a national health care reform aimed at changing the future of the American health care system especially for the millions who previously could not afford it. The idea is to reduce government spending in and provide better, cheaper options of health care for all Americans. As part of this reform, affectionately referred to as “ObamaCare,” the online health insurance marketplace HealthCare.gov was launched on October 1st, 2013 that allows Americans to determine if they are eligible for government-subsidized coverage and compare prices on affordable, quality insurance.

So what went wrong at launch?

  • The unanticipated flood of users interested in the website lead to a virtual “wait room” for all users who could not even log in due to massive lag and denied access.
  • There were further glitches in the website that prevented certain payment transactions.
  • The website was criticized for difficulty in navigation on top of the technical problems.

What was the damage of the unsuccessful launch?

  • After one month of launch, only 106,185 Americans chose Obamacare out of all health insurance plans available and only 25.2% purchase through HealthCare.gov.[1]
  • HealthCare.gov cost upwards of $600 million[2], more than triple the amount spent to build LinkedIn ($200 million).

What additional problems arose after the launch?

  • On October the 20th, well over two weeks after the website’s launch, U.S. President Obama himself admitted to being disappointed at the website’s launch. The Department of Health and Human Services published a blog post acknowledging previous hiccups during the site’s testing and even promotional phases, and promised to bring in “the best and the brightest” to fix it. This provoked critics to disparage why that was not done in from the onset.
  • Earlier this week on November the 26th, the Obama administration announced a one-year delay for small businesses in signing up coverage via HealthCare.gov and forcing them to go through offline enrollment while they fix the user functionality. [3]

So what actually went wrong?

This, of course, is a huge discussion. Aside from the political nature of this website, additional volatility surrounds the vast amount of stakeholders and uncertainty in predicting website usage. As expected, a lot of fingers have been pointed at different stakeholders, but it is still ultimately the U.S. government’s responsibility to establish a working website.

LACK OF AN OFFICIAL PROJECT CHARTER

This project bares similarity to the TAURUS project developed by the London Stock Exchange which failed because they were over-ambitious, tried to appeal too many stakeholders, and never clarified a starting point and ending goal. A clear project charter would have helped to clarify the stakeholders, requirements, timeline, and key objectives of HealthCare.gov, thereby eliminating scope creep and assigning accountability. Clearly outlining the project requirements and expectations across all contractors could have also aligned them towards a common set of goals and deliverables. They could have even outlined performance metrics or used an earned value management tool to track the progress of the project during development to keep both the budget and timeline tight. The result of not having a project charter? Overpromising and under-delivering.

OUTSOURCING METHOD WAS OVERLY COMPLEX

Given all the stakeholders HealthCare.gov had to address, the Obamacare website was already complicated enough without 55 different contractors. Out of the 55, CGI Federal was the main contractor, handling the Federally Facilitated Marketplace, QSSI lead the registration tool and data transfer service, Equifax verified the income data to determine eligibility to health care, and Serco handled paper applications[4]. Proprietary software was impossible to integrate, functionality and speed was not well considered, and communication was difficult to facilitate across all different parties. This unnecessary complexity lead to critical functionalities of the website being sub-par even at launch.

LACK OF CLEAR RISK MITIGATION STRATEGY

Not only was end-to-end testing held off until a couple weeks before launch[5], and even so the failed testing should have been a clear red flag, but even that was overlooked. Using a Risk Matrix could have been established even before the website launch to anticipate a proper mitigation strategy should the launch fail (which happened to be the case). Inability to handle more than peak load could have been one of these risks, and a simple solution would be waiting for the results on legal compatibility with Amazon Cloud Services to establish a central, scalable solution.

So what should they do now?

An initial failure to launch does not mean that the project cannot be salvaged. By establishing structure and seeking the right help, HealthCare.gov still has the chance to become a service Americans can be thankful for.

First and foremost, they need to seek the right help to help them get back on track. Aneesh Chopra, former White House CTO, suggests the Presidential Innovation Fellows to help pair the U.S. government with the “best and brightest” from the private sector with a track-record in restoring programs that have faced technical troubles like this. Finding one capable and experienced leader who knows politics, technology, and the healthcare industry is crucial in overseeing the IT project, and will help to centralize communication.

Second, they should develop project plan and management structure. Knowing the complexities in the backend working with an abundance of contractors and databases, managing all these parties in an effective way will help streamline the project delivery. All the time while developing the functionality, they must remember to anticipate risk.

Next, they need to get the website to function properly. This starts with gathering user feedback, prioritizing what to fix, and starting with guaranteeing the core functionalities of the website: “organizing insurance plans, assessing program eligibility, facilitating consumer enrollment.”[1] These are the “minimum viable product” for the website, or the bare minimum for the website to function.”

In the long term, after they finally launch a bug-free version website, HealthCare.gov should to consistently monitor the activity to ensure first response to unanticipated problems.



 

Categories
Business Ethics Insight Marketing Strategies Product Positioning & Branding

Macklemore’s Thrift Shop affects Consumer Behaviour…?

Macklemore

Who hasn’t heard of Macklemore’s 99-cent leopard mink coat from his smash hit, Thrift Shop?

“Vintage” is the new class.

 

After the financial crisis in 2008, there seems to be a large rise in price sensitivity amongst consumers. Even thrifting, an endearing abbreviation which modern-day hipsters have coined for thrift shopping, has transformed from a shameful to shameless activity. Celebrities have been advocating it in music videos like Thrift Shop, in sitcoms like 2 Broke Girls, and even in fashion magazines like GQ Magazine. YouTube  personalities and beauty gurus have also been showing off their great buys and pretty looks using drugstore, on sale or thrift store items. Heck, as someone who had never thrifted before, I have even gone out to find some clever buys of myself. And, as I did so last Friday after studying for my consumer behaviour midterm, I had the sudden realization that I had been subject to a form of observational learning.

 

There are four conditions to modelling, which is a significant type of observational learning. In “self-diagnosis,” I found that I managed to satisfy all of them:

  1. ATTENTION: the model must be desirable to emulate: I followed and took note of the trend amongst big time celebrities in pop culture, beautiful makeup and beauty gurus on YouTube, magazine guides, friends who come back with awesome clothes
  2. RETENTION: the consumer must remember what model says or does: magazine guides give you the “top 3 rules to keep in mind while thrifting”
  3. PRODUCTION PROCESSES: the consumer must convert information into action: I went out to an actual thrift store to try out those tips
  4. MOTIVATION: the consumer must be motivated to perform these actions: I felt motivated because… well hey, who wouldn’t like to get trendy clothes for a fraction of the price? It’s what I like to call a guilt-free deal-steal. It gave me a kind of thrill, and I would do it again. 

 

I learned, through observing the personalities that I follow online and my peers, that thrift shopping is the new, “in” thing to do, and throughout this time, I have not even seen one single thrift shop advertisement. In hindsight, it could almost be a type of negative reinforcement created unintentionally by social pressures; in this era, you are applauded for a clever, thrifty purchase and have also avoided the unpleasantness of  overpaying.

Who knew that marketing could be applied  in such a non-conventional way!

Categories
Business Ethics

Quick Case Studies #1: Preventing Millennials From Chegg-ing Out

 Category: HR |     Who: Chegg Inc., an online textbook-rental service based in Silicon Valley.

This is Chegg! How cute is that logo?

 

Problem: Employers are in high demand of millennials, but millennials also have their own high demands. In addition, baby boomers are retiring. Employers are trying to replace them with millennials, but have been encountering high turnover rates. How can they attract and attain the young generation emerging into the job market?


Analysis: Gen Y’s are ” tech-savvy, racially diverse, socially interconnected and collaborative.” They have high demands themselves – they want good working hours, they want additional benefits, they want to be heard, they want to contribute something useful, and they really want to like their jobs.

Solution: Chegg “eliminated some middle-management positions to give younger hires more exposure to projects, and they introduced an unlimited paid vacation policy. He said no one has abused that policy.” Another company,  Aprimo, guaranteed “recent college graduates a promotion within one year, assuming performance is up to par.”

Results: For Chegg, “the annual turnover rate among millennials has since fallen by 50% each year for the last two years.” As for Aprimo, “100% of participants have received a promotion and salary bump,” not to mention “helped double the share of millennials at the 1,200-person company to roughly 20%.”

 

 

Personal Learnings, Comments, and Recommendations: To retain millennials and not upset their seniors, unique incentives should be implemented but not without strategy. It is important to effectively and clearly negotiate to all employees to make sure no group feels segregated or mistreated because of new policies or incentives that they are not receiving. How? I would dive back down to assess the basics of human nature starting from McClelland’s Human Motivation Theory and Sirota’s Three-Factor Theory and then make executive decisions on what incentives to implement after:

 

 Millennials 

Achievement (more dominant): 

They want to feel like they are contributing, and they want to receive active feedback for how they are doing. They are motivated by challenge and the chance to fully use their talents. They like being directed with goals, and want their jobs to be non-routine. 

Affiliation: 

Millennials were brought up in a diverse and collaborative environment, so they are comfortable. At the same time, millennials prefer change and a little risk. They are more likely to hop companies and try new things. 

Power: 

They look for opportunities for growth and, well let’s be honest, more money to buy their iPhone 5’s and ultrabooks.

 Baby Boomers 

Achievement: 

Baby boomers have more years in the field, and thus they tend to follow the system for feedback.They have good work ethic and are alright with routine. 

Affiliation: 

They tend to be more independent, and would likely would find motivation in passing on their knowledge and exemplifying their skills to the younger, arrogant generation who couldn’t properly wear a suit if their lives depended on it. 

Power (more dominant): 

They want to feel important and respected, and could feel threatened when they feel as if their seniority is not being enforced. They are more likely to enjoy a bit of competition and are quite good at communicating their needs.

 Both 

Equity/fairness: 

At the same time that millennials should be able to receive incentives, baby boomers must not be neglected because ultimately, “they were there first.” They want to ensure job security. 

Achievement: 

In that sense, incentive programs that could promote/motivate millennials should be countered with programs to recognize seniors. Boomers want to know that their wages are still relatively competitive. 

Camaraderie: 

Of course, the best case scenario is that the two generations get along. This will help increase employee morale and productivity. 

It’s really interesting to read about the actual trends in employee attraction and retention as I prepare to emerge into the job market as a Gen Y myself. How fast will the market change in 2 years?

 


About Quick Cases:

In order to train my critical thinking and analysis skills, I have decided to blog about case studies at least twice a week. The ultimate challenge? Complete each one within an hour. I will summarize the case and comment on any ideas I absolutely loved, or anything I would have done differently. Stay tuned for another!

Update:

Just came across another case study talking about youth unemployment and Benetton’s solution: the “Unemployee of the Year” campaign. Interesting read!

Categories
Business Ethics

Taking Over the World… Wide Web

 

Social media” — two words that we Generation Y’s have been constantly bombarded with these past few years.

 

It is very interesting to look back at the progression of social media and migrating trends on the interwebs (as I affectionately call it) thus far, from MySpace to Facebook to Twitter and Youtube, as well as the evolution in the definition of the word itself. An interesting blog post  describes a wide variety of definitions for social media, leading to a hefty discussion about what social media really is. What amazes me is the deviance between definitions given by people of different statuses, roles, or industries.

 

 

For example, Wikipedia defines social media as “web-based and mobile technologies to turn communication into an interactive dialogue.” A response to the blogpost suggested that “social marketing is the art of encouraging consumers to shift between audience, author and influencer.” European marketing professors, Andreas Kaplan and Michael Haenlein, emphasize the technical aspects of social media as  “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content.”

 

 

Personally, acknowledging that there is no set definition, I believe the blog definition comes extremely close to grasping the essence of social media in its current state. A pessimist would say that social media has deviated from pure social interaction to strategic engagement, usually with monetary benefits. However, the way I see it, social media is just a simple method organizations or companies are using to interact with individuals through a more personable approach, and in this case, individuals would be the audience. Consumers can also play the role of “author” by creating online materials to respond back (for instance through blogging), and then “influencing” peers by sharing pages or tweeting news about organizations. This “online presence” that acts as a link between consumers and the online community has become increasingly important.

 

 

Out of personal experience, in an application for an innovative technology solutions company, I was asked to my amusement the amount of Facebook friends and Twitter followers I had. Has online presence has somehow become correlated to influential power, social skills and credibility? After immediate research, I noticed that it wasn’t just the technology industries. Even the hotel industry is looking to increase revenue and booking volume by investing in more social media which, according to the article, has become as popular as pay-per-click or more.

 

All of this just leaves me to wonder, has social media become integral to all aspects (of life, of business, of jobs, and even of education) in our generation, and can it keep being revamped and innovated, or is it just another trend that is about to reach its plateau?

 

Categories
Business Ethics

Zaha Hadid

Zaha Hadid

Beautiful architecture by one of TIME magazine’s top 100 most influential people, Zaha Hadid. Click photo for link to album containing her works.

Categories
Business Ethics Technology Top News

Internet Kill Switch: Egypt

A world with no Facebook? A world with no Youtube? A world… with no internet?

We already know about censorship in China and North Korea. According to most recent updates, the Egyptian government apparently has cut off all internet in response to the public protesting. (Try it out here: http://www.sis.gov.eg/) How did they do it? In essence, by forcing the nation’s service providers.

It started with Twitter, then Facebook, and eventually the entire internet. They even blocked all text messaging services.

Protests are increasingly getting violent; a curfew was disobeyed, leading to reported deaths (unconfirmed). Molotov’s were thrown, and teargas thrown back. The world is tense in anticipation of Egypt’s new government. Live updates here.

Our lives today are so much dependent on the convenience of the internet – we wake up, check our e-mails, read some news feeds, go to work/school, type up some more documents, waste time on Youtube, update our Facebook status, and repeat. All joking aside, can you even imagine a powerful nation such as the United States cutting off all their internet?

“There’s no way that will happen.” I can already hear the mocking voices of cynics. Such a metaphorical button may, in fact, be in existence. There has been abill proposed in the US, the “Protecting Cyberspace as a National Asset Act,” last year that has been brought back again this year.

For future reference, FOTP: Fresh off The Press

Categories
Business Ethics

Screwing Around (Facts)

Chopsticks are traditionally used with (amongst others) Chinese, Japanese, Korean, Vietnamese, Laotian, Thai, Burmish cuisines. It is such a popular eating utensil in Asia that up to 130 million pairs of chopsticks, and equivalent of 100 acres of trees, are used every day.
The wooden version of this widely used eating utensil often seen in restaurants and food courts, however, has a very negative impact on the world and health.
So how is a pair of take-out chopsticks made (credit)?
1. Bamboo trees cut
2. Production in central Vietnam
3. Bleaching
4. Drying
5. Packing
6. Shipping
7. Wrapping
Now after the consumers use the chopsticks in restaurants, here is what happens:
To conserve money and “resources”, some people in China even resort to picking out thicker pairs of bamboo chopsticks and shaving off the outer sides to prepare for repackaging.
What other harmful effects do disposable chopsticks cause?
– factor to deforestation & desertification in China (causes landslides and floods)
– because bamboo can be expensive, chopsticks are often made from birch, a tree that takes 30 – 40 years to mature
So, let’s screw around, on the go, wherever we go.
One last video here showcasing reusable chopsticks that can be bought at Tzu Chi: https://www.youtube.com/watch?v=NnpVcL5FpbE
Categories
Business Ethics

Business Ethics: Nestle Milk Misleading with Melamine?

DURING the September of 2008, a huge scandal broke. The parents of a baby Chinese boy, whom had developed kidney stones after drinking milk powder manufactured in China, filed a lawsuit against Sanlu (biggest  producer of milk powder in China) for the damage to their son’s health (seeking a $22,000 compensation).

Baby checked for kidney stones in China (click any picture for source link)

The article by National Post, “More than 54,000 affected by China milk scandal,” reports of four infant deaths attributed to the chemical additive, not to mention more than a hundred with other serious conditions. The number climbed to an estimate of 300,000 victims and 13 infant deaths.

Milk powder is dumped in protest

In this ordeal, Nestle (Northeastern China manufacturer) was also found guilty of having minor levels of melamine in its milk powder products (source: Taiwan says melamine found in Nestle milk powders). So why would a such a big and renowned company insert harmful additives “traditionally used to create durable dishware and clear resins” into foods consumed by infants?

Apparently, there is more reason to boycott Nestle...?

Nestle’s contemptible reason was to falsify food quality checks of water-downed milk by  increase nutrient and protein levels with nitrogen-rich melamine.  Now let’s take a look at Nestle Canada’s vision:

Our vision is to be the leading nutrition, health and wellness company in Canada bringing Good Food, Good Life to Canadians throughout their lives.

Is this not a drastic and outrageous contrast? The companies abused the public’s trust in their brand name and have harmed tens of thousands of infants by limiting materials for the benefit of, well, conserving money alone… and they are still up and running.

Spam prevention powered by Akismet