RPM - Case for Excellence


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

    1. 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. 2. Improvement Doesn’t Just Happen
    3. 3. Execution of Strategy: The Corporate Challenge of Our Times! <ul><li>“ Strategy has never been more important” </li></ul><ul><li>Business Week </li></ul><ul><li>“ Less than 10% of strategies effectively formulated are effectively executed” </li></ul><ul><li>Fortune Magazine </li></ul><ul><li>“ 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.” </li></ul><ul><li>“ Why CEO’s Fail,” Ram Charan and Geoffrey Colvin Fortune (6/21/99) </li></ul>
    4. 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. 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. 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. 7. Creating Long Term Value <ul><li>The Balanced Scorecard tracks performance of the factors that create long-term economic value in an organization </li></ul><ul><ul><li>Customer Focus: satisfy, retain and acquire customers in targeted segments </li></ul></ul><ul><ul><li>Clinical/Business Processes: deliver the value proposition to targeted customers </li></ul></ul><ul><ul><li>Organizational Learning & Growth </li></ul></ul><ul><ul><li>Financial Health and Accountability </li></ul></ul>. Finances Processes Customers People
    8. 8. It’s About Vision, Strategy & Action <ul><li>Provides a visual framework for moving from vision to strategy to action </li></ul><ul><li>Provides a communication tool about progress toward planned improvement </li></ul><ul><li>Draws a cause and effect roadmap in a one-page strategy document </li></ul><ul><li>Supports a systems approach to form an Integrated Management Process </li></ul>
    9. 9. Focused Outcomes <ul><li>Helps employees focus, coordinate and collaborate on meeting organizational goals </li></ul><ul><li>Speeds and informs decision-making about prioritization of work and resource allocation </li></ul><ul><li>Improves management effectiveness by having a shared plan for continuous improvement </li></ul><ul><li>Communicates clearly and visually the alignment needed to execute hospital strategy across the organization. </li></ul>
    10. 10. Mapping Strategic Outcomes Measurement communicates, it does not control Financial Perspective <ul><li>Profitability </li></ul><ul><li>Growth </li></ul><ul><li>Operational Efficiency </li></ul>Mission Vision & Values Customer Perspective <ul><li>Confidence </li></ul><ul><li>Service </li></ul><ul><li>Quality </li></ul>Internal Perspective Learning and Growth <ul><li>New Skills </li></ul><ul><li>Strategic Awareness </li></ul><ul><li>Technology </li></ul>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? <ul><li>Patient Safety </li></ul><ul><li>Operational Improvement </li></ul><ul><li>MD Needs </li></ul>Measurement is the language that gives clarity to vague concepts
    11. 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. 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 <ul><li>Provide input to strategic issues currently being worked </li></ul>Review Strategic Issues (60%) FUTURE (Continuous Learning) BETWEEN THE MEETINGS THE QUARTERLY STRATEGIC REVIEW MEETING Discuss Implications (30%) <ul><li>Review performance data (available on-line) </li></ul><ul><li>Dialogue about performance </li></ul><ul><ul><li>Explain anomalies </li></ul></ul><ul><ul><li>Suggest solutions </li></ul></ul><ul><ul><li>Identify issues </li></ul></ul><ul><li>Identify strategic issues for next discussion at next group meeting </li></ul>Review Past Performance (10%)
    13. 13. The Right Thing at the Right Time
    14. 14. Results Are What Count! The Balanced Scorecard is quick, efficient, proactive and provides a common language for organizational improvement.
    15. 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