Leading Your Strategy Development - & Your Team In Uncertain Times

Transcription

1 Leading Your Strategy Development - & Your Team In Uncertain Times The 2017 OPEN MINDS Executive Leadership Retreat September 28, :30 am 9:30 am Monica E. Oss, Chief Executive Officer, OPEN MINDS Lincoln Square, Gettysburg, Pennsylvania Phone: info@openminds.com

2 What I ve Learned The Past Three Days Increasing agreement among stakeholders that the current financing system doesn t work for payers, health plans, or provider organizations Bundled rates appear to be here to stay but mean different things to different people Managed care will continue to have more impact of LTSS and human services in different models Health plan investment is focused on use of peer models and techenabled consumer-directed interventions Primary care capacity is consolidating more than I thought In their communication, leaders need to separate constructive criticism from anger don t say anything unless it will create positive change Great events sometimes turn on comparatively small affairs. 2

3 We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction. Bill Gates 3

4 The Big Leadership Questions Where is the health and human service market headed? What are the key drivers of the New Normal? How do organizations in the field create a plan for sustainability? How does that plan become a reality? 4

5 What are the key drivers of the New Normal? Acute Care Post-Acute Care Long-Term Care Primary Care Social & Human Services Facility-Based Care Community-Based Care Home-Based Care Consumer-Enabled Services The Goal Of Integration Is To Reduce Overall Spend & Will Disrupt Entire Service Delivery Sectors In The Process 5

6 Where is the health and human service market headed? The Drivers Of the New Normal Integration Reducing specialty funding Reducing specialist income Driving value-based reimbursement Value-Based Reimbursement Changing the fundamental business model for provider organizations Driving consolidation and collaboration Platform for competition based on technology deployment Emerging Tech & Tech Leverage Analytics are the new EHR Technology for consumer engagement and consumer self-management the holy grail The new market differentiator 6

7 Complexity Where is the health and human service market headed? Value-Based Reimbursement From The Provider Organization Strategy Perspective Fee-forservice One service One payment Risk Continuum Pay for Performance Upside only Process measures Case Rate Group of services Unified payment Periodic payment Bundled Payment Bundle of services Unified payment Quality targets Episode-based payment Capitation Full risk Population target Disease specific all in Total Health Outcomes Shared risk on total member experience Financial Risk Increased management complexity and financial risk require enhancements to organizational capabilities driving need for capital and consolidation 7

8 Where is the health and human service market headed? Where Does Technology Fit In This Equation? Necessary To Manage Risk & Compete On Value Analytics technology to support performance measurement capability Treatment technology into increase value of consumer care For analytics technologies, use of the data for decision making is key to ROI For treatment technologies, increasing treatment value is key to ROI Technology not valuebased payment will be the big disruptor 8

9 Where is the health and human service market headed? The Emerging Tech-Enabled Service System 1. Tech Facilitating Consumer Convenience 4. The Tech Substitution Effect 2. Tech Driving Selection Of The Right Service 3. Tech Facilitating The Right Service Location 9

10 Where is the health and human service market headed? Business Model Transition For Service Provider Organizations Payer Policy = Pay For Cost Or Volume Payer Policy = Pay For Value What is paid for is good for the consumer - and doing more is the business model A revolution in performance management required Giving the consumer (and their payer) what they want and need is the business model Good outcome at low cost conveniently 10

11 How do organizations create a plan for sustainability? How To Maintain Competitive Advantage & Financial Sustainability? Three Strategy Questions What is your organization s vertical strategy - preferred position with health plans and consumer care coordination organizations? What is your next generation service line? How does your organization create that next generation service line and stay a market leader? 11

12 How do organizations create a plan for sustainability? Identifying Future Competitive Advantage Vision of future service lines and market positioning Current consumers and their future payers Future competitive approaches to core customers Connect your mission and current customer value proposition to realities of the future environment Core competency and value to customers 12

13 How do organizations create a plan for sustainability? The Sustainability Issue Aligning Vision In Three Domains Programmatic offering for service delivery and positioning of services (horizontal) The challenge? Creating service models and an organizational management model for financial sustainability in new environment Financing options Role in care management and structural positioning (vertical) 13 Balancing these three elements is key to specialist organization market positioning

14 How do organizations create a plan for sustainability? Transforming Your Business Model - In Three Steps Principle 1 - Redesign programs to serve unique customers Principle 2 - Accelerate the value of self-service through automation Principle 3 - Transform practice through analytics 14 Graphic: Deloitte University Press PUPress.com

15 How does that plan become a reality? What Management Best Practices Are Needed To Assure Sustainability? Strategy development scenario-based with planning for disruption Leadership with the ability to manage complexity Rapid cycle innovation Organizational evolution with emerging technology Metrics-based performance management 15 Sustainable financial model with reimbursement tied to value

16 How does that plan become a reality? Health & Human Service Market Has Gone From Complicated To Complex When things interact, they change one another in unexpected and irreversible ways creating unexpected innovations and outcomes - or systems emergence. Complicated systems may have many parts but when the parts interact they do not change each other The distinction between complexity and complicated Complexity is about rich interconnectivity 16

17 How does that plan become a reality? Leading In A Complex Environment Does Not Demand More Order & Control It takes complexity to succeed in complex environments! When environments become complex, the natural reaction of executives is to respond with order to turn to hierarchical approaches of leading and managing change top-down. Why? Provides a false sense of control for managers Why? Provides a false sense of leaders taking care of things 17

18 How does that plan become a reality? Leading In A Complex Environment Does Requires Adaptive Response Complex environments need structures and leaders that enable adaptive response! Adaptive space requires two systems operational and entrepreneurial Allows team members to take innovation to commercialization and create a new business model Provides an organizational construct to resist the orthodoxy from winning (allows change to happen) 18

19 How does that plan become a reality? Leadership Needed For Adaptive Response Enabling Leadership Operational Leadership Entrepreneurial Leadership 19

20 How does that plan become a reality? Enabling Leadership Principles Leverage Complexity Thinking & Use Organizational Pressure To Drive Change Enable Adaptive Space With Conflicting Goals Enabling Leadership Practices Brokering & Linking Up Of Ideas Managing Tension Creating The Simple Rules 20

21 How does that plan become a reality? Creating Your Team Of Enabling Leaders... Comfortable with uncertainty and confident that, even with ambiguity, information and patterns will provide clues for guiding action. Willing to take great risks in opening up adaptive space for others - and humble enough to step back so others can step forward. Enabling leaders do all this because they see the bigger objective - ensuring ongoing viability and fitness of the organization. Trust in ability to innovate - and engage in it with strategic thinking and a keen sense of timing Comfortable with tension and willing to use it - including putting others in tension in ways that may at times make them uncomfortable. 21

22 How does that plan become a reality? The leadership model for sustainable organizations in a complex health and human service environment Complexity Enabling Leadership Meta-Leadership Ethical Leadership Transformational Leadership 22 Transactional Leadership

23 We ve got 21st century technology and speed colliding head-on with 20th and 19th century institutions, rules, and cultures. -Amory Lovins 23

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