The New Operational Reality: Building a Framework for Value An Evidence-Based Approach

Transcription

1 The New Operational Reality: Building a Framework for Value An Evidence-Based Approach April 7 th, st Annual CHA Rural Health Care Symposium Dan Collard, Senior Leader

2 Today s Objectives: Learn the components of a framework for value Understand how an emphasis on customer service, employee engagement and overall accountability can dramatically improve quality Connect to the need for leadership development as demonstration of values Leverage strengths of rural providers and communities to navigate the pathway to value Slide 2

3 May You Live in Interesting Times ~ Ancient Chinese Curse Environmental Drivers: The Game Changers - Weak Economy - Changing Demographics - Increased Regulation - Politics of Deficit Spending & Reduction Industry Pressure Points - Increased Uncompensated Care - Declining Commercial Volumes - More Physician Employment - Reimbursement Cuts The New Operating Reality

4 Why Do We Need a Culture of High Performance? The external environment demands it Our Rural Health values will not let us do anything different Slide 4

5 All Businesses are Susceptible to Inflections Inflection Point That which causes a business to make a fundamental shift in their strategy New Technology Regulatory Change Affordability Customer Convenience When is the Right Time to Change and How Do You Do It Without Disruption? Industry transformation is neither predictable nor linear Established organizations have difficulty overcoming resistance and/or try to wait for the perfect time to change (which may be too late) 1975 Source: A Crucial Conversation About Healthcare Acquired Inflections; Nathan Kaufman, Managing Director, Kaufman Strategic Advisors, LLC, Slide 5

6 Culture: Successfully Dealing with Inflection Points Focus of Leadership Focus of Organization Why ** Inflection Point Burning* Platform (motivation: fear of failure in the FUTURE) Burning Ambition (motivation: to make things better) Deny Demonize Depart Depression Innovation Selfselection Excitement Pride Who What When Where * In the whole repertoire of human behavior, there are almost no behaviors in which we take the long-term future into account. ~ Dan Ariely ** Referenced in A Culture of High Performance, By Quint Studer, Page 68 Source: A Crucial Conversation About Healthcare Acquired Inflections; Nathan Kaufman, Managing Director, Kaufman Strategic Advisors, LLC, Slide 6

7 Consumerism Yet Another Inflection Southwest Airlines is successful because the company understands it's a customer service company. It also happens to be an airline. Harvey Mackay, Columnist Slide 7

8 Consumerism Takes the Shape of Competition Slide 8

9 Studer Group Mission and Vision Mission: To make healthcare a better place for employees to work, physicians to practice medicine and patients to receive care. Vision: To be the intellectual resource for healthcare professionals, combining passion with prescriptive actions and tools, to drive outcomes and maximize the human potential within each organization and healthcare as a whole. Slide 9

10 Best Performers Make it Their Own Advocate Experience

11 ENGAGEMENT QUALITY SAFETY FINANCIAL PERFORMANCE & PATIENT EXPERIENCE

12 Patient Perception of Care = Quality Slide 12

13 Patient Perception of Care = Quality Slide 13

14 Patient Perception of Care = Quality Slide 14

15 Readmissions by Hospital Ranking on HCAHPS Discharge Instructions Slide 15

16 Hospitals with Better Patient Experiences are Less Expensive Slide 16

17 My Role as a Leader Know the data Know/Learn the solution Know/Learn my role in the solution

18 Evidence-Based Leadership SM Foundation STUDER GROUP : Objective Evaluation System Leader Development Must Haves Performance Gap Standardization Accelerators Aligned Goals Aligned Behavior Aligned Process Implement an organizationwide staff/leadership evaluation system to hardwire objective accountability Create process to assist leaders in developing skills and leadership competencies necessary to attain desired results Agreed upon tactics and behaviors to achieve goals (Must Haves ) Re-recruit high and middle/solid performers Move low performers up or out Processes that are consistent and standardized Process Improvement PDCA Lean Six Sigma Baldrige Framework Software Slide 18

19 Evidence-Based Leadership SM Foundation STUDER GROUP : Objective Evaluation System Leader Development Must Haves Performance Gap Standardization Accelerators Aligned Goals Aligned Behavior Aligned Process Implement objective accountability system Better align training to outcomes Sequence tools and techniques Retain High Performers, Coach Mid Performers, Help deal with low performers Hardwire consistency Improve survivability Slide 19

20 Reducing Variance 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Feb Goal = 90% Apr Jun Aug Oct Dec Feb Inpatient Monthly Percentile Score Year 1 Year 5 Why Organization Retained SG Apr Jun Aug Oct Dec Feb Apr Jun Aug Year 1 Year 2 Year 3 Year 4 Year 5 Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun 95% Leader Evaluation Tool Implemented Aug

21 Reducing Tolerance for Variance 100% 90% Goal = 90% Inpatient Monthly Percentile Score Year 5 Year 7 99% 80% 70% 60% 50% 40% 30% 20% 10% Leader Evaluation Tool Implemented 0% Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Year 5 Year 6 Year 7

22 Leadership Foundational Skills SKILL SET DESCRIPTION Managing change Running effective meetings Managing financial resources Answering tough questions so as to not create a we/they culture (compensation with salaries) Selection of talent Development of talent Critical thinking De-selection Understanding the external environment Manage up the positive, the solution and the decision Improving processes Communication

23 A Day in the Life Slide 23

24 Change Reimbursement changes, technology changes, procedures change, medications change, events and people change, the most important skill is to create a culture that has the agility and ability and to adapt to the changes. Slide 24

25 Change Not Always Bad or Feared Slide 25

26 The biggest obstacle in achieving high performance is not achieving the needed urgency for change. Kotter, John P (2008) A Sense of Urgency. United States: Harvard Business Review Press.

27 Because at the Center of it All: Slide 27

28 Questions?

29 Thank You! Dan Collard Studer Group (850)