RPM - Case for Excellence
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  • (11) Does a strategic focus make sense in a tactical business world?
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Transcript

  • 1. Building and Implementing a Balanced Scorecard at Mid-Valley Hospital A Tool for Continuous Improvement Rural Performance Management , LLC a Stroudwater Associates company 443 Congress Street Portland, Maine 04101 (207) 756-6090 ext. 227 (800) 947-5712 Toll Free
  • 2. Improvement Doesn’t Just Happen
  • 3. Execution of Strategy: The Corporate Challenge of Our Times!
    • “ Strategy has never been more important”
    • Business Week
    • “ Less than 10% of strategies effectively formulated are effectively executed”
    • Fortune Magazine
    • “ In reality, strategy is less than half the battle. .. In the majority of cases – we estimate 70% – the real problem isn’t [bad strategy]…. It’s bad execution.”
    • “ Why CEO’s Fail,” Ram Charan and Geoffrey Colvin Fortune (6/21/99)
  • 4. 9 of 10 Companies Fail to Execute Strategy Four Barriers to Strategy Execution Kaplan and Norton’s The Strategy Focused Organization Only 25% of managers have incentives linked to strategy The People Barrier Only 5% of the work force understands the strategy The Vision Barrier 85% of executive teams spend less than one hour per month discussing strategy The Management Barrier 60% of organizations don’t link budgets to strategy The Resource Barrier
  • 5. Bridging the Gap Between Strategy & Action STRATEGY: Our game plan STRATEGIC INITIATIVES: What we need to do PERSONAL OBJECTIVES: What I need to do MISSION VALUES VISION The Balanced Scorecard STRATEGIC OUTCOMES Satisfied COMMUNITY Delighted CUSTOMERS Efficient & Effective PROCESSES Motivated & Prepared WORKFORCE
  • 6. The Balanced Scorecard is a way to collect data and information that helps organizations move from strategies to action that improves performance. Adapted from Kaplan and Norton’s The Strategy Focused Organization
  • 7. Creating Long Term Value
    • The Balanced Scorecard tracks performance of the factors that create long-term economic value in an organization
      • Customer Focus: satisfy, retain and acquire customers in targeted segments
      • Clinical/Business Processes: deliver the value proposition to targeted customers
      • Organizational Learning & Growth
      • Financial Health and Accountability
    . Finances Processes Customers People
  • 8. It’s About Vision, Strategy & Action
    • Provides a visual framework for moving from vision to strategy to action
    • Provides a communication tool about progress toward planned improvement
    • Draws a cause and effect roadmap in a one-page strategy document
    • Supports a systems approach to form an Integrated Management Process
  • 9. Focused Outcomes
    • Helps employees focus, coordinate and collaborate on meeting organizational goals
    • Speeds and informs decision-making about prioritization of work and resource allocation
    • Improves management effectiveness by having a shared plan for continuous improvement
    • Communicates clearly and visually the alignment needed to execute hospital strategy across the organization.
  • 10. Mapping Strategic Outcomes Measurement communicates, it does not control Financial Perspective
    • Profitability
    • Growth
    • Operational Efficiency
    Mission Vision & Values Customer Perspective
    • Confidence
    • Service
    • Quality
    Internal Perspective Learning and Growth
    • New Skills
    • Strategic Awareness
    • Technology
    What financial resources are required to fulfill our mission? What do customers want, need, or expect? To satisfy our customers, at which clinical/ business processes must we excel? What resources skills, training, and support do staff have in order to work effectively?
    • Patient Safety
    • Operational Improvement
    • MD Needs
    Measurement is the language that gives clarity to vague concepts
  • 11. Strategy Map Example “ Through long term sustainability (including financial), we will seek to improve the health opportunities for county residents.” Long-Term Sustainability Patients and Community Clinical and Business Processes Staff and Infrastructure Improve the health opportunities for County residents Strive to provide the best rural healthcare services in a modern setting Develop growth opportunities internally and externally Improve the quality and safety of Patient Care Be the employer of choice by recruiting, developing, and retaining a highly productive and motivated workforce “ In order to achieve long term sustainability, we will meet patient and community needs by providing the best rural health care services in a modern setting.” “ In order to provide the best services, we will develop business growth opportunities and provide the highest quality clinical and operation services.” “ In order to support our processes for growing services and providing high quality care, we will be the employer of choice for a highly productive and motivated workforce.”
  • 12. Shift Focus to Strategy Review Past Performance (40%) Discuss Implications (30%) Review Strategic Issues (30%) PRESENT (Event-Driven Learning) THE QUARTERLY REVIEW MEETING The Balanced Scorecard Collaborative
    • Provide input to strategic issues currently being worked
    Review Strategic Issues (60%) FUTURE (Continuous Learning) BETWEEN THE MEETINGS THE QUARTERLY STRATEGIC REVIEW MEETING Discuss Implications (30%)
    • Review performance data (available on-line)
    • Dialogue about performance
      • Explain anomalies
      • Suggest solutions
      • Identify issues
    • Identify strategic issues for next discussion at next group meeting
    Review Past Performance (10%)
  • 13. The Right Thing at the Right Time
  • 14. Results Are What Count! The Balanced Scorecard is quick, efficient, proactive and provides a common language for organizational improvement.
  • 15. Rural Performance Management , LLC a Stroudwater Associates company 443 Congress Street Portland, Maine 04101 (207) 756-6090 ext. 227 (800) 947-5712 Toll Free