Malcolm Baldrige National Quality Award

Transcription

1 Malcolm Baldrige National Quality Award Presented to: King Abdullaziz Quality Award October 25, 2016 Presented by: Rulon F. Stacey, Ph.D., FACHE Chair, Malcolm Baldrige Award Board of Overseers Managing Director, Navigant

2 Malcolm Baldrige National Quality Award 2016 Established by United States Congress 1987 Signed into Law by President Ronald Reagan Managed United States Department of Commerce, National Institute of Standards and Technology Identify/recognize high performance Establish gold standard criteria Disseminate/share best practices Expanded to health care, education (1998) Expanded to nonprofit sector (2005) As of 2015, 109 awards given to 103 organizations

3 2016

4 Steps Toward Mature Processes Reacting to Problems (0 25%) Early Systematic Approaches (30 45%) Aligned Approaches (50 65%) Integrated Approaches (70 100%)

5 What is Baldrige? A systems approach to improving your organization Baldrige Performance Excellence Program 2015

6 Navigant s Blueprint for Organizational Capabilities Your Strategic Fundamentals your unique situation and direction Leadership System and Culture Strategy and Execution Workforce Engagement Market and Customers Operations and Processes RESULTS Measurement and Information Use Your Leadership and Management Methods The Results You Achieve Adapted from Baldrige Framework Purposefully aligned with key elements of High Reliability including: Leadership, Safety, Cultural Blueprinting, Reliable Care Blueprinting

7 Transformational Journey Progress and Assessment Score Stage 0 Reaction Regulatory and external compliance only Stage 1 Projects Project mentality, characterized by individual tactical improvement activities Transformation start Stage 2 Traction Alignment of projects to strategy; Focus on leadership and management processes, systems approach Stage 3 Integration Integrate across key leadership and management processes and key operational processes Baldrige Worthy OR: Give up on the process when managed as a delegated project Stage 4 Sustain Continued improvement as methodologies are embedded into the organization s culture OR: Decline, as the organization loses discipline and changes course Time ~ 3 10 Years

8 Navigant Client Examples

9 Baldrige Award Participants Since Baldrige Award recipients (109 awards) 1,700 award applications

10 Baldrige in 3 minutes

11 Blueprint for Performance Excellence Approaches, Processes, Tactics Organizational Performance Results How do Leaders create results?

12 Linking the Pieces Great organizations link it all together: what s important, what they do and what they measure What is important to us? Organizational Profile Who are we? What do we do? Who are our customers? What are our challenges? Who are our competitors? How do we improve? How do we lead and manage? Process Categories Leadership 2 Strategy 3 Customers 4 Measurement, Analysis and Knowledge Management 5 Workforce 6 Operations How are we doing? Results Category Health Care/ Process 7.2 Customers 7.3 Workforce 7.4 Leadership/ Governance 7.5 Financial/ Market

13 Business Case for Baldrige Baldrige users with national award site visits Faster five-year performance improvement than peers 83% more likely to be among Thomson Reuters 100 Top Hospitals Outperformed non-baldrige hospitals on 6 of Top Hospitals measures Source: Foster, D. A., and Chenoweth, J. 2011, October. Comparison of Baldrige Award Applicants and Recipients with Peer Hospitals on a National Balanced Scorecard. Thomson Reuters.

14 Adoption of Baldrige Practices Top 100 hospitals winners extensively use Baldrige practices (80%) Highest formal use: Teaching hospitals (nearly 70%) Source: Shook, J., and Chenoweth, J. 2012, October. 100 Top Hospitals CEO Insights: Adoption Rates of Select Baldrige Award Practices and Processes. Truven Health Analytics.

15 Adoption of Baldrige Practices (2) By 2018, U.S. hospitals likely to: Use the Baldrige Criteria for improvement or assessment: 65% Apply for the Baldrige Award or a state-level Baldrige-based award: 41% Source: Futurescan 2013: Healthcare Trends and Implications American Hospital Association, Society for Healthcare Strategy & Market Development.

16 United States Performance Data National Institute of Standards and Technology Survey of United States Stock Prices: 2016 Baldrige Award Recipients (all industries) as a group outperformed the S&P 500 by 2.5 : 1 (Fourth year in a row) Whole-Company recipients outperformed S&P 500 by 3 : 1 (fourth year in a row) The 52 companies which were 1) publicly traded and 2) had a Baldrige Site Visit out performed the S&P 500 by 80 percent o Publicly traded, site visited companies achieved 216% rate of return o S&P 500 during the same period was 118.7% rate of return Source: National Institute of Standards and Technology (NIST) review of stock prices

17 European Performance Data European award winners outperformed similar size and industry organizations 11 consecutive years Australian winners outperformed non recipients 3.5 : 1 (until 2003, no data since) New Zealand Study by Mann and Saunders showed correlation for higher performance in organizations following Baldrige type principles. Source:

18 Benefits of Baldrige Prioritize organizational activity o Take non-aligned activity off the plate Engage and align the entire workforce o Build a goal cascade process - line of sight o Much needed accountability and excitement Grow process literate Drive comprehensive enterprise results

19 Our Success Rests on Building relationships with employees (do we have the triangle?) Meeting needs of providers Providing better quality than ever before Emphasizing what we have Working as ONE Quality Providers Employees

20 Treating Employees as Customers In any organization, managers provide a service; the service they provide is leadership, and the customers of that service are the employees. Leadership action plans based on employee engagement survey results (spring and fall) Visibility Harder to fear someone you know Hold employees accountable Hold leaders accountable for fully engaging employees Quality Providers Employees

21 Provider Engagement Engaging all our providers is critical Providers connect with Fairview in 3 ways: Independent Faculty Employed Quality Providers Employees

22 Develop People Performance Review Process Reward & Recognition, including Peer-to-Peer Coupons Optional Performance Plan Learn & Lead, Building Blocks of Leadership Learn & Grow Grand Rounds, Tuesday Afternoon Conferences Mentoring Program Tuition Reimbursement Professional Associations, Conferences

23 Develop People Performance Review Process Best Practice: Integration of Values, Behavior Standards, Core Competencies, Key Customer Requirements & Personal Goal Cards

24 Execute the plan & drive performance personal goal cards link individual goals to vision

25 Results Gabriel, NICU Graduate

26 Baldrige National Quality Award (2008) 8 national applications 6 state applications 4 national site visits 3 state site visits Colorado Performance Excellence Peak Award (2004, 2008, 2012) PVHS Feedback Report Scoring Bands

27 Healthcare Outcomes Risk-Adjusted Mortality Rate

28 Customer-focused Outcomes Top box scores for Patient Satisfaction 10 years of consistent improvement

29 Financial & Market Outcomes Patient Discharges: 59% increase from % increase in PVHS discharges from 2000 to % population growth in Larimer County from 2000 to % increase in Competitor discharges from 2000 to % population growth in Competitor s home county from 2000 to 2010

30 Workforce-focused Outcomes Staff Voluntary Turnover

31 Our Vision To provide world-class health care Molly 4th generation treated at PVH

32 Contacts 2016 RULON F. STACEY, PhD Managing Director 30 S. Wacker Drive, Suite 3100 Chicago, Illinois GREGORY BURGER Director 7B, 7 th Floor, Rolex Tower Sheikh Zayed Road PO Box Dubai +971 (0) gregory.burger@navigant.com navigant.com