Culture: Solving for Why Mitch Wasden Ed.D CEO OHSU Healthcare
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1 Culture: Solving for Why Mitch Wasden Ed.D CEO OHSU Healthcare
2 OHSU: Oregon Health & Science University 1. $3.0 Billion in Clinical Revenues 2. 1,200 Employed Physicians 3. 14,000 Employees 4. Nationally Ranked in 13 Specialties by US News & WR 5. #30 in NIH Funding - $300M+ in research spend annually 6. Received $1 Billion from Nike Founder Phil Knight for Cancer Research 2
3 SURVEY Q1. How many of you have strategic planning retreats? Q2. How many have strategic plans? 3
4 Culture eats strategy for breakfast. Peter Drucker- 4
5 SURVEY Q3. How many of you have Culture retreats? Q4. How many of you have Culture Plans? 5
6 Culture eats strategy for breakfast -Peter Drucker If culture is that powerful, why do we have strategy retreats and strategic plans, but NO culture retreats and culture plans? 6
7 RESULTS FROM LEADING WITH CULTURE 7
8 Benefits of Engagement in Culture Create 22% higher productivity (Gallup survey of 1.4M employees) Doubles the rate of success of an organization Lower absenteeism 25% lower turnover Higher quality 41% fewer patient safety incidents 41% fewer quality incidents (defects)
9 Results at Ochsner Medical Center-Baton Rouge How identity drove results from Hospital: From 15 th percentile patient satisfaction to 90 th (3 years running) Clinic: From 50 th to 95 th (3 years running) Employee engagement from worst in the 8 hospital system to #1 in the 8 hospital system RAMI/RACI from worst in system and city to tied for 1 st From unprofitable to profitable
10 Results at MU Health Care How identity drove results from 2012-present Hospital: From 15 th percentile patient satisfaction to 89 th Exceeded budget 5 straight years, margins from 4% in 2012 to 8.75% in 2016 Employee engagement increases for four consecutive years from 14 th to 60 th percentile UHC/Vizient Ranked MUHC #9 in the nation in 2014, tracking in top quartile. Market share growth from 19.6% to 26.7% in four years 1,200 PDSA/QI projects done per year by 5,500 employees
11 KNOWING + DOING = SKILL USELESS USEFUL KNOWING KNOWING DOING DOING SKILL! 11
12 BKD Model: Work is MEANINGFUL when we see our identity in it. USELESS USEFUL MEANINGFUL WORK KNOWING KNOWING BEING DOING SKILL DOING DOING MEANINGFUL WORK KNOWING 12
13 WE LIVE IN COMPLEX TIMES 13
14 Exponential Intellectual Property Applications Doubling every 2 years US Patent Applications EU Patent Applications Source: USPTO and EU PCT and EPC 14
15 Explosive Risk - Bankruptcy Doubling every 10 years Personal Bankruptcy/1000 persons Source: Administrative Office of the US Courts and Census Bureau 15
16 World Population (Billions) Booming Population Growth Source: World Population Growth: Historical Trends & Future Prospects, Charles Hirschman 16
17 Our Mental Dilemma 25 YEARS AGO: 5 15 YEARS AGO: TODAY: MEMOS/WEEK VOIC S/ DAY S OR TEXTS/DAY What is noise and what is signal? 17
18 Complexity in the Healthcare Industry The healthcare industry is the most complex form of organization we have attempted to manage in human history. Peter Drucker-
19 IDENTITY AS A BUTTERFLY EFFECT Cultural Identity is the Butterfly Effect Butterfly effects explain how tiny actions can cause huge results The problem is these actions are nonlinear and so are difficult to flow chart out. As a result we often discount them.
20 INSIGHT #1 YOU CAN ONLY MANAGE COMPLEXITY WITH SIMPLICITY 20
21 Group Behavior: Complex Flocking Behaviors 21
22 What complex flocking birds can teach us 3 individual instructions creates group order: 1. ALIGNMENT: Steer toward the average heading of the flock (see the vision) 2. COHESION: Steer toward the average position of local flock mates (stay close to your team) 3. SEPARATION: Avoid crowding other birds (but not too close need for autonomy) 22
23 3 Rules make Order from Chaos 23
24 INSIGHT #2 YOU MUST CREATE IDENTITY WITH THE BRAIN IN MIND 24
25 Identity is behind every action Identity is the butterfly effect, that small thing that creates large scale change IDENTITY - drives - ACTION - drives - RESULTS VS. 25
26 Ingredients for a Mental Identity Map IDENTITY MAP: I am a Mizzou Fan 1) Emotion Pride/Joy 2) Instructions Shout: Go Blue! Yell at the other team Wear Maize & Blue 1) EMOTION How we feel about the identity Emotion is encoded on each mental map The stronger the emotion, the more quickly it can recruit the mental identity map (for good and bad) In a new context, identity maps generally recruit.05 to 8 seconds before we are consciously aware of them affecting our behavior 2) INSTRUCTIONS The brain creates a list of instructions regarding behavior associated with that identity 26
27 When we perceive a situation through identity filters, reality is obscured Every situation recruits new identities which want to be validated or enhanced. Only occasionally do we drop identities that don t serve us. The Identities cloud reality and keep us from seeing things clearly. Recruited Identities Activated by the Situation Mother Doctor Stressed Victim Possible Identities The Situation You are running behind schedule and have three more patients before you can leave. One of your partners told the receptionist to send any walkin patients to you so they can leave early for a social function. You then walk into the room to see the patient Fear based identities keep us from seeing clearly given they are more clouded than power-based identities (due to a limbic hangover) 27
28 INSIGHT #3 WE ALL THINK IN IDENTITY NARRATIVES 95% OF THE TIME 28
29 The Narcissist Test When you see a group photo that you were in, who is the first person you look for? 29
30 Science has proven the brain broadcasts on 2 channels CHANNEL 1: NARRATIVE Plays our favorite program called Me and My Story We are always the main character We broadcast on this channel 95% of our waking hours High ego needs CHANNEL 2: DIRECT EXPERIENCE We broadcast on this channel 5% of the time We are not the main character but rather feel at one with the story line and those in it. No ego needs 30
31 Why can you listen to an hour lecture and only recite back 7% of it s content but remember almost 100% of the stories that were told? 31
32 INSIGHT #4 MAKING THE SCIENCE OF IDENTITY PRACTICAL 32
33 The Practice: Culture Building through Attention Density PROGRAMS THAT ENFORCE IDENTITY Power of One Awards Linking behaviors in evaluations Reciting the identity at the start of staff meetings Making the phrases part of the public language Power of One stated at the end of e- mails signatures, memos, etc 33
34 The Power of One: Together we Imagine, Inspire, Engage, & Excel Imagine Inspire Engage Excel Invent the future Simplify complexity Connect to the mission Lift others 10/5 Rule Assume positive intent Say Do Ratio 1:1 Reach higher
35 INSIGHT #5 OTHER ORGANIZATION WHO HAVE DELIBERATELY FOCUSED ON CULTURE AND BEHAVIORS 35
36 Culture as a trade secret 36
37 INSIGHT #6 EMPLOYEES FOCUS ON WHAT THE LEADER FOCUSES ON. SO FOCUS ON THE DESIRED ORGANIZATIONAL IDENTITY. 37
38 Leader as a museum curator 38
39 39
40 40
41 41
42 Museum Curators make choices about what they want people to focus on... Leaders make choices about what they want people to focus on... 42
43 43
44 44
45 CULTURE AND MISSION EMPLOYEES 45
46 The Power of One: Together we Imagine, Inspire, Engage, & Excel Imagine Inspire Engage Excel Invent the future Simplify complexity Connect to the mission Lift others 10/5 Rule Assume positive intent Say Do Ratio 1:1 Reach higher
47 What employees focus on Employees focus on what the leader (curator) is focused on... If you don t want employees to focus on something (drama, victim mentality, etc ) get it out of the gallery. 47
48 What to Expect It will take 18 months to get 12,000 people to memorize 1 sentence It will feel cool in the first six months, stale from 7-12 months, and then become who we are at months Employees will never model it if the leader doesn t model it and recite it at huddles, reward for it, and hire for it. 48
49 Strong Identities Drive Higher Performance MOUNTAIN TRIBE VALLEY TRIBE 49
50 You were not his mother 50
51 Education is not the filling of a pail, but the lighting of a fire. W.B. Yeats 51
52 52 Thank You
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