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David takes on Goliath

David takes on Goliath

Mukesh Lad chief executive of Mr Pickford's Pharmacy and chairman of Pharmacy Northants-MK, describes how a group of independents fought a supermarket chain over a contract application

In October last year, my admin team was advised that one of the largest national supermarket chains had submitted a pharmacy relocation application under the 'ownership with no significant change' ruling. The actual relocation, however, referred to a small 100-hour pharmacy contractor site. The supermarket, on the other hand, was moving several miles from its previous location into a new giant superstore. And all this within a stone's throw of one of my pharmacies.

My board of directors were obviously on high alert with the inevitable €what are we going to do about it?€ question pointed firmly in my direction. As chief executive officer and superintendent pharmacist for my group, I knew I was about to lead an offensive to the frontline against a very successful commercial organisation.

Having already accepted the lack of any alternative, I swung into action with a SWOT analysis to reflect the strengths, weaknesses, opportunities and threats for my affected pharmacy and those of our board of directors. In any challenging situation, it's fundamental to evaluate the facts and take account of the information and skills already available to you. I had to identify the core strengths and any weaknesses of Mr Pickford's Group. We had to become the much-loved, patient-focused David that would slay the 'open-late-everyday- regardless-of-outcomes' Goliath.

Two key actions

Our research confirmed two key actions: first €“ the need to secure current business by retaining our existing customers, and second €“ lodge a legal challenge with NHS England against the application. This wasn't something to be taken lightly in any sense. The cost and complexity of a legal challenge would be staggeringly high. So back to the drawing board of evaluation and I soon realised our pharmacy was one of at least six independents that would be affected by this commercial giant.

One of the key tools in any dispute is communication, and it offers real value in business. It could allow me to gain more information as well as the trust and partnership of professional colleagues who had only considered themselves competitors until now.

I wrote to the contractors outlining the impending threat to our livelihood and I listened to the specific suggestions and feedback from the three colleagues that responded. We created a coalition and pooled financial and human resources. Now we could seriously find a solution to the challenge.

In any challenging situation, it's fundamental to evaluate the facts and take account of the information and skills already available to you

With a specialist law firm signed up and me representing our independent coalition, the incessant trail of emails and data gathering started to evolve. It was important to identify every legal point we could contest, and by late November the NHS area team had been formally advised of our objections to the proposal. Our position was supported by the LPC, who have the statutory option to comment on any market entry application. In their response, they recommended the application be rejected as it did not satisfy regulatory tests.

Building on success

In February this year, we were delighted to receive confirmation that the relocation had been refused by NHS England. Just like the biblical David, not only had I braved the giant but it had also given me the opportunity to do more. I had reviewed our pharmacy 'default settings' because the legal challenge had precipitated the need for a detailed review of systems and process to ensure what we were offering to customers would maintain their loyalty to us in the future. This led to major investment, including the development of new IT systems, operational processes and staff training.

By April of this year the supermarket, unsurprisingly, appealed to the NHS Litigation Authority. The NHS area team decision was overturned and we were heading for an appeal hearing. Our final observations and response statement were filed less than two weeks later and we waited for the date of the oral hearing.

When it finally came, the announcement came as a blow to us because I would be on annual leave. David may not be my middle name but I'm never one to give up, so I set to work with the legal team on a fact-finding mission.

The final piece of the jigsaw was a detailed site survey and we were ready to hand over to another board director who was fit and ready to face our Goliath again.

Secret rendezvous on holiday

It's a fine art trying to balance family holidays with checking emails remotely. Already committed to the demand of undivided domestic attention for once in my elusive family year, I was having to secretly rendezvous with my inbox, the now common mistress of any pharmacist committed to their business and patients.

So when the Litigation Authority upheld the NHS area team's decision to reject the no significant change application, it was most certainly the successful result of a significant change for me and the team that united to support the action.

When reflecting on the challenge of how to reconcile the complex demands of an ever-growing business with the compelling demands of family life, nothing could have felt more appropriate that celebrating the slaying of this Goliath with family and friends.

It's been 3,000 years since that shepherd boy felled a mighty warrior, but ever since he's stood for battles between underdogs and giants. I've used his example to challenge how we think about obstacles and disadvantages and how we can overcome apparent threats by reshaping the way we operate. By working together in new ways we can build individual and collective confidence for the greater good of our pharmacy profession.

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