From Test Cricket to T20 Playing to win in the new aged care game. Richard Ainley & Steve Teulan Monday 16 October 2017

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1 From Test Cricket to T20 Playing to win in the new aged care game Richard Ainley & Steve Teulan Monday 16 October 2017

2 The game plan for today Know the rules Build the team Craft the tactics

3 The rules

4 It s just not cricket two journeys of transformation 1882: Original Ashes match 1977: Start of World Series 1969: First One cricket Day domestic tournament 1996: First Women s One Day domestic competition 2007: First IPL series 2011: KFC Big Bash League (BBL) 2015: First Women s BBL 2017: First Day/Night Ashes Cricket Customer experience Choice Flexibility Aged Care 2022 Objectives: 1963: Introduction of nursing home benefits 1980s: Home and community care focused reforms 1990s: Residential aged care reform 2004: Hogan Review of pricing arrangements 2011: Productivity Commission review 2013: Living Longer, Living Better reforms enacted 2015: Commonwealth Home Support program replaces HACC 2016: Amendments to Aged Care Act 1997 Sustainable and affordable Greater choice & flexibility Support home and community care Encourage investment & growth Diverse and rewarding career options

5 Past Future Relaxed and comfortable Provider-centred One-size-fits-all Heavily regulated Low customer satisfaction Ambitious and agile Customer-centred Choice, flexibility and diversity Regulation provides the baseline Serial disruption of new products and providers

6 Learning the new rules of the new aged care game The customer decides who wins New ideas and new players will disrupt the game Agility, flexibility and creativity will be needed If we know the rules, are we playing to win?

7 The team

8 Building a championship team The first eleven The right structures A winning culture Equipped with new skills for new service models Drawn from a diverse range of backgrounds Able to be all-rounders holistic, collaborative, agile Leaders developed at every level of the organisation Connected to the broader health and aged care system Organised to deliver personcentred care and experiences Enable flexibility and responsiveness Increase local control and accountability Expertise and knowledge leveraged across the organisation Underpinned by robust systems and measurement A compelling vision and shared values Person-centred behaviours modelled and reinforced by the leaders Resident and family experience is everyone s business Innovation, prototyping and controlled risk-taking are celebrated

9 Nous playbook Seven levers of cultural change Using leadership to inspire high performance by consistently modelling and driving the desired culture. Ensuring the workforce, particularly leaders, is equipped with the skills and qualities that enable cultural change and the valued behaviours to be lived everyday. Confirming that barriers are removed and policies, practices and procedures realigned to shift habitual behaviour. Ensuring the identification, measurement and reporting on cultural change for early insight and iterative adjustment to the approach. 1. Leadership commitment 3. Workforce capability 5. Practices and procedures 7. Monitor and evolve What s modelled What s expected Who s equipped What s reinforced What s habitual What enables What s measured 2. Values and behaviours Creating a workforce that is clear about what s expected of them and hold themselves and others to account. 4. Recognition and consequences Reinforcing the desired culture when valued behaviours are frequently identified and recognised and poor behaviours are actively addressed. 6. Underpinning structures Aligning Organisation structures, hierarchy, locations, physical layout and ICT investment with organisation s mission, values and behaviours.

10 The tactics

11 The tactics It s tribal we know our customers It s a customer participation sport putting the customer in charge We try new things (regularly) - rapid, safe to fail service development

12 Nous playbook Rapid service design Changing environment requires organising around customer outcomes Kano effect of changing customer expectation Search for sustainable meaningful growth Digital disruption from alternate competitors New business models creating better customer experiences Employee expectations of environment that fosters innovation Essential tests of fit Problem Solution Fit What are the emerging customer needs? What is the current market failure? Which solutions have best chance of success? Iterative evidence-based design of services Essential capabilities Rapid customer insights Human centred design techniques in customer research to understand and prioritise opportunities, customer expectation and fit with capabilities and brand Product Market Fit What opportunities exist for services to better meet customer needs? How do customers react to the new service or improvement? Business Model Fit How can we sustainably deliver this ideal service to the customers? What operating model changes are required for success? Co-design and prototyping Bring together customers, staff and external partners to design a fit for purpose service model and iteratively test prototypes to market success Agility Develop radically new service delivery models inspired from emerging digital business models to improve revenues and take out costs

13 Play

14 How are you playing the game? OPTIMISING HYBRID PROTOTYPING Consumer-directed traditional models Service extension and new formats Service reinvention

15 About Nous Nous is the largest Australian-founded management consulting firm with over 250 staff across Australia and the UK. We partner with leaders to shape worldclass businesses, effective government and empowered communities PEOPLE PRINCIPALS OFFICES COUNTRIES