Thinking Frameworks Lead to Successful Change Management

Transcription

1 Thinking Frameworks Lead to Successful Change Management Presented by: Penny Crow, MS, RHIA, Senior Principal, Cornerstone Advisors Group Paul Selivanoff, CPA, Manager, Adventist Health/West Wednesday June 25, 11:00 am 12:45 pm Penny Crow, RHIA Certified in Six Thinking Hats, Facilitation, and Lateral Thinking Speaker, author and consultant in thinking frameworks, leadership, Privacy, ICD-10 Readiness, and Revenue Cycle Healthcare experience includes practice management and hospital administration Industrial & Organizational Psychology experience includes organizational succession planning, change management, corporate training, and organizational development Page [ 2 ]

2 Paul Selivanoff, CPA Trained in process improvement at the U.S. Air Force Academy, The Joint Commission on Accreditation of Healthcare Organizations and W. Edwards Deming. Led a 9 month project to startup new hospital. Consolidated 5 hospital revenue cycle programs into a single program. Led process improvement teams that resulted in a $3 million swing in net income over 24 months. Recognized in 1992, when the hospital was named 1st runner up in American Hospital Association s annual hospital turnaround contest. Started a residential construction firm which became a high quality, low cost producer of entry level homes. Pioneered the use of a menu driven report writer and developed a machine language based disk copy protection scheme. Speaker, author and consultant in performance management, finance and technology issues. Page [ 3 ] Objectives Participants will understand the impact of people and culture on change activities Participants will understand the three ingredients necessary to every change process Participants will understand the importance of using a thinking framework to focus team thinking and tap individual perspectives Participants will be able to apply a thinking framework to their change management efforts. Participants will be able to demonstrate a thinking framework which will result in faster decisions, increased productivity, and permanent behavior change in their own organizations. Page [ 4 ]

3 Presentation Outline The imperative to manage change How are we doing? Elements of Successful Change Process: SWITCH model Understanding thinking failures Introducing the 6 Thinking Hats model Exercise: Using the 6 hats model to strategize around the three change ingredients. 5 Industry Changes are Perpetual Access Utilization Management Disease Management Population Health Culture of Health 6

4 Changes Currently Happening Reform Rise in M&A and Divestures Regulatory Climate Public expectations Price Transparency Expansive interconnected IT systems in organizations that are highly compartmentalized. Rise in chronic disease in population Changes in loyalty, morals and ethics 7 How are we doing 40% of projects meet schedule, budget and quality goals. - IBM Study 61% of projects analyzed were deemed a failure. 75% cost at least 30% more than budget. - KPMG Canada Survey % of IT projects with budgets of over $15 million dollars run 45% over budget, are 7% behind schedule and deliver 56% less functionality than predicted. - McKinsey/Oxford study. 8

5 How are we doing. (continued) 70% of organizations have suffered at least one project failure in the prior 12 months and 50% of respondents indicated that their project failed to consistently achieve what they set out to achieve. - KPMG New Zealand. 9 Causal Factors failure correlated most strongly with ineffective leadership and the clash with the existing culture.. - Martin Smith in Changing an organization s culture: correlates of success and failure, Leadership & Organizational Development Journal Vol 24 p the biggest barriers to success are people factors. - IBM Study 10

6 Causal Factors (continued). Bad communications between parties are the cause of IT project failures in 57% of cases they studied. - Canadian Study Biggest barrier to achieving sustainable organizational change: 18% organizational culture 15% physician hospital relationship. - Cost Containment Harnessing Data to Drive Revenue Cycle and Productivity 12/ How people respond to change 1. DENIAL How good things were in the past They don t really mean it It can t happen here Numbness Everything as usual attitude Minimizing Refusing to hear new information 3. EXPLORATION What s going to happen to me See possibilities Chaos Indecisive Unfocused Work Energy Clarifying Goals Seeing Resources Exploring Alternatives Learning new skills 2. RESISTANCE Anger Loss and Hurt Stubbornness Blaming Others Complaining 4.COMMITMENT Where am I headed Focus Teamwork Vision Co-Operating 12

7 CHANGE IS HARD. IS THERE A BETTER WAY? SWITCH Change Management Model Intellectual Emotion Culture/Environment Direct the Rider Motivate the Elephant Shape the Path Find & Follow The Bright Spots Script the Critical Moves Point to the Destination Investigate what works and clone it Think specific behaviors Change Is easier when you know why and value the result Find the Feeling Shrink the Change Grow your People Knowing something isn t enough. Make them feel it Break it down into pieces Cultivate a sense of identify and instill a mindset Tweak the Environme nt Build Habits Rally the Herd Make it easier to do the right thing Habits are free. Choices are taxing Spread good behavior From the book SWITCH

8 Why Strategies Fail Culture drives organizational behavior Culture trumps strategy but structure trumps Culture. Fred Lee, If Disney Ran your Hospital : 9 ½ Things You Would Do Differently People don t change unless certain conditions exist: More uncomfortable to remain than to change 15 Why Strategies Fail 16

9 Significance of changing structures. Measurement shapes the path You get what you reward You reward based on what you measure You measure based on what you want to achieve The very act of measuring changes the environment 18

10 Metrics help St. Helena drive change 250 Began reporting here Support Tickets > 6 Days Old How Dashboards Helped CC Profits Changed to metric based management Tom Wadsworth

11 The problems of today will not be solved by the same thinking that produced them in the first place. Everything has changed except the way we think. Albert Einstein Traditional Thinking in a Group (max group size = 6) In your group, do some thinking and talking about this focus topic: Marriage is a five-year contract

12 Traditional Thinking in a Group Where did you focus your thinking? What thinking behaviors did you observe? Five Common Thinking Failures 1. We fail to look for something. 2. We see only part of the situation. 3. We leave things out. 4. We fail to take consequences or other people s thinking into account. 5. We fail to generate enough ideas and alternatives.

13 Traditional Thinking What is Parallel Thinking? Getting everyone focused on using the same thinking tool at the same time Encourages the sharing of information

14 Six Thinking Hats The Framework Unbundles thinking Explore ideas in parallel Separates ego from performance Specific time for creativity Signals the thinking process

15 The Benefits Simple to Learn Easy to Use Immediate Results Reduces Conflict Encourages Cooperation Opens up New Possibilities Pertinent Applications Creative Training Reporting (Ensures all aspects are covered) Meeting Facilitation and Meeting Management Critical and Analytical Thinking Team Productivity and Communication Problem Solving Product Development Decision Making Process Improvement Where ever High Project Management Performance Thinking is Needed

16 The Quality of Your Thinking will determine the Quality of your Future! - Edward de Bono Where to start? You have to be the change you want to create. - Gandhi 32

17 Let s Talk About You Where do you do your best thinking? What thinking system do you use to make important decisions? With Skill and Practice, change can be executed successfully 34

18 Practice Group Exercise (max group size = 6) Create a program to: (pick one) Get 100% compliance with hand washing policy Organize yourselves. Report on your proposed solution and how it Directs, Motivates, and Shapes the path. Identify any thinking failures that occurred 35 Questions?

19 For More Information Penny Crow (512) Paul Selivanoff (402)