Innovation in community pharmacy—a necessity for survival and success

The COVID-19 pandemic has reshaped the world of community pharmacy. Some pharmacies have thrived, while others have struggled to survive. So what is the key factor that separates the winners from the losers? Innovation.

In this article, we will explore why innovation is so important for community pharmacies in the face of unprecedented challenges and opportunities, and will explore some practical tips on how to cultivate an innovative mindset and overcome barriers to innovation in your own pharmacy.

The Crucial Role of Innovation

The pandemic has tested the resilience and adaptability of community pharmacies like never before. Pharmacies have had to cope with increased demand, supply chain disruptions, staff shortages, safety protocols, and changing customer expectations.

Today, the looming threat of increased dispensing quantities (otherwise known as 60-Day Dispensing) brings about a raft of challenges due to the financial impact of reduced foot traffic. Paired with decreasing margins and increased competition, current, emerging, and future threats continue to put pressure on the viability of community pharmacies.

In this context, innovation is not a luxury, but a necessity. Innovation is not just about adopting new technologies or products, but about finding new ways of doing things better, faster, cheaper, or more effectively. Innovation is about creating value for your customers, your team, and your business.

The Flawed ‘Sit and Wait’ Approach

It’s a common but flawed belief among some pharmacy owners that they can simply ‘sit and wait’ for the consequences of 60-day dispensing to become clear. This complacent attitude is what ultimately results in the failures of community pharmacies. We saw it when Price Disclosure happened, and we’re seeing it today.

This approach, along with a mindset to blame others for the negative impacts that their business has and will endure, does the business, their teams, and the communities they serve a complete disservice. And in reality, it leaves pharmacies unprepared and vulnerable to changes that are out of their control, such as government reforms that reduce profitability and ongoing viability.

Embracing the Need for Innovation

To innovate successfully, you need more than just tools and resources. You need a willingness to first embrace the need to adapt a mindset of innovation. And this has to be internally driven and also inspired by those who have stood in the face of similar challenges before and have come out on top.

A mindset of innovation is a way of thinking that goes beyond adaptation to proactive growth. It is a way of seeing problems as challenges and challenges as opportunities. It is a way of embracing change and uncertainty as sources of learning and improvement.

A mindset of innovation is not something you are born with but something you can develop and nurture. It requires curiosity, creativity, courage, and collaboration. It also requires a clear vision of what you want to achieve and why.

The Importance of Proactive Responses

As a community pharmacy owner or manager, you may be tempted to adopt a ‘sit and wait’ approach to the current situation. You may hope that things will go back to normal soon or that someone else will solve your problems for you. However, this is a dangerous strategy that will put your pharmacy at risk.

The pandemic has created lasting changes in the pharmacy landscape that you cannot ignore or avoid. And now with the introduction of the 60-day dispensing policy, customers will visit your pharmacy less frequently, decreasing your revenues, and reducing your opportunities to engage with them and to offer additional services or products, unless you do something about it NOW.

But innovating to survive is one thing. Innovating to thrive is much more.

To thrive and succeed in this new environment, you need to anticipate future challenges and respond proactively. You need to find ways to create value for your customers beyond dispensing medications and saying “you offer good service” (what does this even mean these days???). You need to differentiate yourself from your competitors by offering unique solutions that meet your customers’ needs and preferences.

And most importantly, you need to cultivate an innovative mindset throughout your organisation.

Cultivating an Innovative Mindset

So how can you develop a mindset of innovation in yourself and your team? Here are some steps you can take:

1. Establish A Clear Purpose
   
   Having a clear purpose of what you want to achieve and why can help you stay focused and motivated. It can also help you communicate your goals and expectations to your team and your customers. Your purpose should be aligned with your mission and values, as well as with the needs and desires of your target market.
   
   
2. Seek Feedback And Input
   
   Innovation is not a solo activity, but a collaborative one. You can benefit from the insights and ideas of others who have different perspectives and experiences. You can seek feedback and input from your customers, your staff, your suppliers, your peers, and other stakeholders. You can also use data and research to inform your decisions and validate your assumptions.
   
   
3. Embrace Change And Uncertainty
   
   Change and uncertainty are inevitable in today’s world. Instead of resisting or fearing them, you can embrace them as opportunities to learn and grow. You can adopt a learning mindset that allows you to avoid repeating the failures of others, and learn from those who have done the hard work of trial and error already, to find and implement holistic and proven solutions that will work for you.
   
   
4. Invest in Learning and Development
   
   Innovation requires constant learning and development. You need to keep up with the latest trends, technologies, best practices, and regulations in your industry. You also need to invest in developing the skills and capabilities of yourself and your team. You can do this by investing (notice it’s not an expense, but an investment) in training, coaching, and mentoring.
   
   
5. Experimentation and Iteration
   
   Innovation is not a one-time event, but a continuous process. You need to be willing to try new things, measure the results, learn from the outcomes, and make changes as needed. You need to be flexible and agile enough to respond to changing circumstances and customer feedback, and always be on the pursuit of a better way of doing things.

Overcoming Barriers to Innovation

While innovation is essential for community pharmacies, it is not easy.

It is, however, the “lack” mindset without any evidence of the truth of these following objections that truly stifles innovation:

1. Lack of Time
   
   Hands down, this is the most common objection we face when working with pharmacies. But let me ask you this:
   
   
   • If not now, when?
     
     
   • If you don’t have the time, then who does?
     
     
   • We’re all given 24 hours in a day. So why can others do it, and you can’t?
     
     
     
2. Lack of Resources
   
   You may lack the financial, human, or technical resources to support innovation, but where is the actual hard evidence in this? And on the flip side, if you don’t invest in ways to learn how to innovate and build your business, how can you grow?
   
   
   
3. Lack of Skills
   
   This is totally understandable because at the end of the day, running a pharmacy didn’t come with an owner’s manual. So to overcome this, you need to learn from someone that’s been in your shoes and knows exactly what you need to do to thrive.
   
   
   
4. Lack of Support
   
   Working in, leading, running, or owning a community pharmacy can often feel isolating and lonely. But it doesn’t have to be. And when you’re on a journey of change, bouncing ideas off trusted advisors and a network of people without fear of judgment or lack of confidentiality is essential.
   
   
   
5. Lack of Confidence
   
   A lack of confidence comes from a lack of certainty. So to build certainty, you need to utilize a robust system that provides you with the tools and resources to innovate, change, adapt, and thrive.
   
   

To build on the above, here are some more strategies you can use to overcome the barriers you might be facing toward innovation:

1. Prioritize Innovation
   
   Make innovation a priority for yourself and your team. Set aside time and resources for innovation activities, such as brainstorming, researching, testing, or learning. Reward and recognize innovation efforts and achievements.
   
   
2. Start Small
   
   You don’t have to innovate everything at once. Start with small changes that can have a big impact. Focus on one problem or opportunity at a time. Use existing tools or resources that are readily available.
   
   
3. Seek Help
   
   You don’t have to innovate alone. Seek help from others who can support you in your innovation journey. Find mentors or coaches who can guide you and share their expertise. Join networks or communities of practice where you can exchange ideas and learn from others. Partner with external providers who can offer specialized services or solutions.
   
   
4. Involve Others
   
   Engage your team, customers, and other stakeholders in co-creating value for them. Solicit their feedback and input throughout the process. Communicate your vision and goals clearly and frequently. Build trust and rapport with them.
   
   
5. Believe in Yourself
   
   You don’t have to innovate perfectly. Believe in yourself and your ability to innovate successfully. Embrace failure as an opportunity to learn and improve. Celebrate your progress and achievements. Seek constructive feedback and criticism that can help you grow.
   

Points to Leave With

If you’re sitting and waiting to see what happens with 60-Day Dispensing, ask yourself if your competitor is doing the same. Because they’re not.

Innovation is a necessity, not an option, for community pharmacies in today’s world. It is the key to surviving today’s challenges, and the ones that will undoubtedly come tomorrow.

To innovate successfully, you need a mindset of innovation that goes beyond adaptation to proactive growth. You need a clear purpose of what you want to achieve and why. You need to seek feedback and input from others who can help you create value for your team, and the various other stakeholders in your business. You need to embrace change and uncertainty as sources of learning and improvement. You need to invest in learning and development for yourself and your team. You need to understand that change and innovation doesn’t happen overnight, and the return on your investment of time and resources is a direct result of your efforts towards innovating and learning new ways to do things better and smarter.

But without prioritizing innovation, starting small, seeking help, involving others, and believing in yourself, your ability to innovate will always be hindered. You will forever have a “lack” mindset and blame others for your challenges, rather than doing the work needed with the support of trusted experts to thrive while others fail.

Your future in pharmacy depends on your proactive approach to innovation.

So what will you choose?

Be coached and mentored to innovate and build a future-proofed and thriving pharmacy?

Or do nothing, and simply sit and wait and end up wondering why your business is failing?

ABOUT THE AUTHOR

Zamil Solanki works with healthpreneurs – from individuals to large multi-national organisations – to help them overcome unique challenges and achieve their goals through curated training programs and tailored holistic solutions. Unlike other coaches and consultants, we pair global research and techniques with our own experiences, having grown our own pharmacy by $4 million and exiting it for 3x the industry average multiple.

To do this, we focus holistically using 5 key pillars – mindset, planning, leadership, marketing and sales – and specialize in workflow, innovation, automation, and systems.

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