W HY STUDY MANAGEMENT ????

OBJECTIVES Describe how pharmacy practitioners and educators viewed the need for management skills as the roles of pharmacists evolved Evaluate the need for a management perspective to better serve patients and improve outcomes to drug therapy. List the managerial sciences, and describe their use as tools to assist pharmacists in practice.

GOOD MANAGEMENT PRACTICE AND MEDICATION THERAPY MANAGEMENT—A WINNING COMBINATION series of studies examined the use of strategic planning by pharmacists in both community and hospital settings Evidence of the success of a management perspective in pharmacy practice abounds studies showed that among community pharmacy owners, those who fully incorporated strategic planning saw higher sales volume and profitability than did those who did not or who did so just partially

studies suggest that pharmacists’ perceived ability to adhere to standards of pharmacy practice hinged considerably on the effectiveness of supervisors to provide them with feedback and facilitate their satisfaction on the job. same study also demonstrated that pharmacists designating themselves as “managers” were less satisfied with their own jobs, likely as a result of their lack of training in such areas Surveys indicate that working pharmacists wish if they had more training in management than what they had.

business/work orientation is a skill needed very much in practice. to achieve excellence in the implementation of MTM services, pharmacists must obtain and properly allocate resources, design efficient distribution systems, select and train adequate support staff, develop systems for disseminating knowledge on new drugs and technology, and document and evaluate the cost- effectiveness of the services provided—all of which are tasks that require management skills

First, the demographic composition has changed dramatically. The mean age of continues to increase, as does life expectancy. This results in a greater proportion of patients presenting with multiple disease states and complex therapeutic regimens. This will require more attention and responsibility from pharmacists.

shrinking profit margins is a challenge Management minded pharmacist looks for other opportunities to bring in additional revenues and decrease expenses, such as implementing cognitive services, selling ancillary products, effectively purchasing and maintaining proper levels of inventory, effective marketing, and having the appropriate amount and type of personnel needed to do the job. management-minded pharmacist also maintains software and automated dispensing technologies that free up time formerly spent in the dispensing process.

THE MANAGERIAL SCIENCES

SCIENCE OF ACCOUNTING The science of accounting involves keeping track of the business’s transactions, such as sales revenues, wages paid to employees, prescription product purchases from suppliers, rent, and utility bills. This must be done to ensure that the company is meeting its debts and achieving its financial goals. Accounting is also used to determine the amount of taxes owed, to make reports to external agencies and/or auditors, and to identify areas where the company’s assets could be managed more efficiently

FINANCE finance is more concerned with the sources and uses of funds 1. Where will the money come from to pay for new and existing services? 2. Which services are most likely to enhance profitability for a pharmacy?

E CONOMICS Economics is a tool to evaluate the inputs and outcomes of any number of processes like: A. right mix of personnel and automated dispensing technologies, B. the optimal number of prescriptions dispensed given current staffing levels, C. whether or not a pharmacy should remain open for additional hours of business D. how much to invest in theft deterrence. E. It is also used to determine the most appropriate drugs to place on a formulary or to include in a critical pathway.

H UMAN RESOURCES MANAGEMENT optimize the productivity of any pharmacy’s people. It involves determining: 1. the jobs that need to be done, 2. recruiting people for those jobs 3. hiring the right persons for those jobs 4. training them appropriately, appraising their performance, motivating them, and seeing that they are justly rewarded for their efforts. It also involves issues such as a) determining the right mix of fringe benefits and retirement programs, setting vacation and absentee policies, b) assistance with career planning, ensuring employees’ on-the-job safety, and complying with laws and rules established by regulatory bodies

MARKETING its activities include 1. Identifying the company’s strengths over its competitors, 2. Properly identifying consumer bases to which marketing strategies will be directed, 3. Carrying the right mix of goods and services, arranging these products for optimal “visual selling,” 4. Establishing the right prices for goods and services. Price setting is critical not only for products but also especially for services

O PERATIONS MANAGEMENT It involves establishing policy delineating 1. the activities of each employee on a day-to-day basis, 2. what tools they will use to accomplish their tasks, 3. where those tasks will be performed 4. maintaining the proper inventory of prescription 5. and nonprescription products so that, on the one hand, the pharmacy is not consistently running out of drug (workflow design)

there are not excess amounts of products reaching their expiration date prior to sale or otherwise taking up valuable space that could be used for other purposes

good business and good patient care are not mutually exclusive. In fact, they are almost entirely mutually dependent. Superior patient care and the implementation of clinical services are made possible by pharmacists who are skilled in management

1.Would you be willing to extend your commute or make other similar sacrifices to work at a place where you enjoyed your job? Why or why not? 2. How do you feel about the role that management plays in the practice of pharmacy? 3. Can you identify someone in a managerial position who is very good at what he or she does? What is it that makes him or her effective? 4. Do you believe that you are going to be an effective pharmacist? What makes you think so? 5. Do you think that you are going to ascend eventually to a managerial position? Why or why not?