Trends From The Trenches - Mastering the Front and Back End of Innovation

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Healthcare Innovation: Trends From The Trenches
Mastering the Front and Back End of Innovation

Featured Speaker:
Andrea (Andi) Simon, PhD and President of Simon Associates Management Consultants

In this next webinar, we will be talking about healthcare innovation in three areas:
- Taking data and ideas and envisioning new ways to solve old problems simpler, easier and better.
- Taking these ideas and turning them into testable innovations.
- Building this into a culture of innovation for your institution.

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Trends From The Trenches - Mastering the Front and Back End of Innovation

  1. 1. The Front End and Back End of Innovation Healthcare Innovation: Trends from the Trenches Andrea J. Simon Ph.D. February 14, 2014
  2. 2. Our Presenter Andrea Simon, Ph.D., President and CEO Simon Associates Management Consultants (SAMC) Dr. Simon (Andi) is a Corporate Anthropologist and Culture Change specialist as well as an award-winning Branding and Marketing consultant. SAMC specializes in helping companies change.
  3. 3. Webinar Series  Healthcare Innovation: Trends From The Trenches Kriss Barlow RN, MBA Principal, Barlow/McCarthy Dianne Auger Senior Vice President, Marketing St. Vincent’s Medical Center President of the St. Vincent’s Foundation Linda MacCracken, MBA Vice President, Advisory Services Truven Health Analytics
  4. 4. Agenda For Today     Front End of Innovation: How can you “see, feel and think” in new ways? Back End of Innovation: How can you turn abundant ideas into effective innovations? How You can begin to develop a Culture of Innovation! 10 Steps to Help You Innovate.
  5. 5. Think About It… "Ideas are like rabbits. You get a couple and learn how to handle them, and pretty soon you have a dozen." - John Steinbeck
  6. 6. The Idea Of “Innovation”   At recent workshops I held on “Change Matters,” I was fascinated by the answer to my question: “Is your organization focused on innovation?” Everyone said “Yes!”
  7. 7. But Doing “Innovation?”   But, when I asked: “What are you actually doing that is innovative?” Their answers: “Not much!”
  8. 8. Not For Lack Of Spending U.S. government spending on health care R&D, which came to $53 billion in 2013, is topped only by the government’s spending on defense R&D.  Private-sector spending on health care R&D also runs into the tens of billions of dollars. 
  9. 9. Yet, Too Many Efforts Do Not Work  Despite this enormous investment and the magnitude of the opportunity for innovators to both do good and do well… Too many efforts fail  Losing billions of investor dollars along the way. 
  10. 10. Some Well-Known “Big” Examples    The disastrous outcome of the managed care revolution. The $40 billion lost by investors to biotech ventures. The collapse of numerous businesses aimed at bringing economies of scale to fragmented physician practices.
  11. 11. Today, Let’s Think About This  How can you: Turn the undesirable to desirable, leading to fresh innovative solutions.  Develop the skills to do this.  Build an affection for ideas -- “see, feel and think” in new ways.  And, a process to “do” things that help implement ideas into effective innovations.  Create a culture that embraces change and keeps it coming. 
  12. 12. Market Evolution: Adapt Or Die! Change Matters !!! 12
  13. 13. Why We Hate Change The Brain, Habits and Culture
  14. 14. You See Things As You Are 14 “We don’t see things as they are. We see things as we are.” ~Anais Nin
  15. 15. Need New Eyes “The real voyage of discovery consists not in seeking new landscapes but in having new eyes.” ~Marcel Proust
  16. 16. 16 You Don’t Know What You Don’t Know What we know What we know we don’t know: like how to fly a plane or speak Japanese What we don’t know we don’t know— EVERYTHING ELSE
  17. 17. Brain Hates To Change Change creates Pain in the Brain 17
  18. 18. Power Of Habits   While we love to think that we are full of “free will” But, we are really products of well-honed habits.
  19. 19. Comfort Of The Herd--Culture
  20. 20. Randomness To Fool The Mind To create new solutions, innovate we have to Fool the Mind.  Have to look outside your current path and capture ideas from other places.  “See” in new ways.  20
  21. 21. You Have Great Ideas    Best ideas are with You! And with your customers and partners. How can you tap into them?
  22. 22. But, Scary, Fuzzy Goals Hold You Back 22
  23. 23. Innovation Is Happening Trends In The Trenches: We See All Kinds And In All Ways
  24. 24. Turning Reluctant Innovators..   It use to take physicians 13 years to adopt new evidencebased medicine protocols. Now it is down to 10 years.
  25. 25. Physician Engagement To Change    Summit Medical: Paving the way for accountability Deciding to become a Medicare ACO, Summit Medical Group—a 218physician group with approximately 140 primary care physicians—had a Real Challenge. What did they do? Got the physicians engaged to change.
  26. 26. Organizations Re-Designed To Innovate  …at the Cleveland Clinic, they are teaching doctors, nurses and staff to “think of themselves and act like an innovator, to try and come up with new and better ways of doing their job, then to use the organization that (Chris) Coburn's created to make something from it.”
  27. 27. New Technology Is Transformative
  28. 28. New Entrants: Walgreens “Take Care” Clinics
  29. 29. Changing The ED Experience  Innovative New Solution: Sending EMS out to people’s homes to do triage rather than just bringing them back to the Emergency Department—such as Christian Hospital in St. Louis has just launched.
  30. 30. Innovations At The Intersections  New Uses for Technology Solutions: Telemedicine services in pediatricians' office to connect with the specialists at the Academic Medical Center—such as the University of Michigan is doing.
  31. 31. Different Types Of Outreach  Addressing Problems In New Ways: Doing extensive high school student cardiac screenings to eliminate the risk of undetected heart attacks on the sports field— as Hurley Medical Center has been aggressively promoting.
  32. 32. Little Steps That Lead To Big Wins 1. Front-line hospital staff as daily problem solvers by Marcelo Zottolo Want to drive performance? Stop telling your front -line staff what to do and engage them in daily problem solving. One of the biggest wastes in healthcare, aside from the wasteful spending, is the waste of not reaching to your front -line staff for daily problem solving. At Cape Coral Hospital, in southwest Florida, we have been experimenting with daily improvement huddles in the emergency department. These are five- to 10-minute stand-up meetings, twice a day, to review service, safety and quality performance. It also provides staff-generated opportunities and ideas for improvement. Read more > >
  33. 33. Business Model Innovations  BayCare Health System with 10 Hospitals on the West Coast of Florida is changing its business model to transform its mission from fixing you when you are broken or sick to population health and keeping you well.
  34. 34. Mobile Medicine That Comes To You www.mymobilemedicine.com
  35. 35. Or This Type Of Mobile Medicine
  36. 36. Then There Is Innovative Pediatricians
  37. 37. Coming Soon To Disrupt Even More  Smart Contact Lenses from Google with chips that can read your tears and evaluate your blood sugar for diabetes.
  38. 38. Feels Like Everyone Else Is Doing It    “Why Not Me?” How do you really “see, feel and think in new ways?” And then how do you actually “do” innovation?
  39. 39. What To Do?  Grab hold and start building something quickly, or else watch your brand wash away into obsolescence.
  40. 40. What Do We Mean By Innovation? Continuous Improvement? Incremental Innovation? Blockbuster Change?
  41. 41. Think About A Continuum Of Innovation Create New Market High Risk, High Reward, Offensive Low Risk, Many Competitors Minimal Change Customer Experience, Cost Savings Strategy High Risk, Defensive Strategy Manage Existing Market Radical Change
  42. 42. Some Initial Observations To Consider    Innovation is not a lot of ideas sitting around searching for some meaning. It is critically important that it is tied into business strategy, customer experiences, organizational processes, structure, and capability. It doesn’t do well by itself.
  43. 43. Execution Wins!    Innovation is when you turn ideas into action—and preferably ones that add value in new ways. It can be incremental or market changing. But how do we know which ones will work?
  44. 44. Innovative Cultures  The big differentiator between vibrant innovative cultures and those that speak about innovation and hope it happens lies in these values and beliefs:       Risk tolerance Idea sourcing Collaboration Small wins, win! A No Failure attitude: success and learning experiences Measure a lot to learn what works all along the way
  45. 45. Build A Culture Of Innovation  An organization that can execute well on a few good “wins” and keep learning is more powerful than one that has lots of great ideas with no way to execute.
  46. 46. The Challenge    All too often a company has established and branded itself as leaders in its industry. But over time, the company has fallen into old habits addressing client needs with the same solutions. Frequently, we find the “factory” driving the business strategy.
  47. 47. Away From Competitive Advantage     As times change, the old strategy of benchmarking your system against others is no longer useful. In-industry competition as systems consolidate around you no longer works. Time to look elsewhere for new ideas. To Create -- Not Compete.
  48. 48. And…    Customers are finding new solutions that are simpler, easier and faster—and often less costly. Staff are ill-prepared to change and resist efforts to transform what they are doing and how they are doing it—that culture. So, let’s begin to change…
  49. 49. Let’s Talk About The Front End Of The Front End Of Innovation What Problem Do You Really Want To Solve? What Job Needs To Be Done – For Whom?
  50. 50. First, Define The Job To Be Done    What do you think you want to change? To solve what problem? What job is to be done?
  51. 51. Maybe You Want To Respond To…      Newly Insured? Build an effective ACO and/or Medical Home? Unmet Needs of Men? Pressure to reduce readmissions and frequent users of your ED? Changing demographics and lifestyles of the future users -- that Gen Y Generation?
  52. 52. Pick One  All of them are challenging the status quo in healthcare systems today – whether you are selling people pharmaceuticals or trying to engage them with your PCP’s or Medical Homes.
  53. 53. 53 Now, Let’s Go Through A Process Diverge Emerge Converge Goals Ideas Bundles Intersections • Deconstruct today • Build an idea bank • Pull in the information from across other industries, markets, etc. • Examine • Explore • Experiment • Testable Prototypes • Include Customers in Creation Process • Test, Test, Test and Learn • Decisions • Action
  54. 54. Divergence Comes First    How can we take the problem and think in new ways about how to solve it? Must deconstruct it. We love Innovation Games® for taking things apart.
  55. 55. 55 Divergence: Or Go Exploring    Must watch and listen Research is clear: people cannot tell you what they are doing. Be an amateur anthropologist.
  56. 56. Divergence: Other Tools     Go Exploring: Like “Undercover Boss” Spend a “Day in the Life of a Customer” Have Lunch and Listen Take a Camera 56
  57. 57. Divergence: Goal To Build An Idea Bank  A place to capture and park ideas before you know what to do with them.
  58. 58. Who And What Are You Looking For?       Nonusers Unmet needs and go-arounds Emerging trends Pain Points you can help resolve Better use of resources Better experiences
  59. 59. What Are Key Levers?     Faster: How can you make something faster? Simpler: How can you make using you, choosing you, simpler and easier? More Productive: How could you make them more productive? More Fun: Maybe make the experience less complex, even fun!
  60. 60. Where Should You Look?    Not where you think! Must look outside of what you know today. Look across… Industry Strategic group Buyer group Scope of product or service offering Functional-emotional orientation of an industry Time
  61. 61. But Don’t Forget Employees  Engage employees across the organization. Employees have an abundance of ideas but no place to put them.
  62. 62. Use Modelling   Ideas come together at the Intersections. Often they need a picture to allow the team to see it together. It helps the brand visualize the end result.
  63. 63. What About Execution? With All Those Ideas What Happens Next? How Do You Know Which Ideas Are Worth Pursuing? How Do You Turn Them Into Effective “Innovations?”
  64. 64. 64 Themes Emerge Diverge Emerge Converge Goals Ideas Bundles Intersections • Deconstruct today • Build an idea bank • Pull in the information from across other industries, markets, etc. • Examine • Explore • Experiment • Testable Prototypes • Include Customers in Creation Process • Test, Test, Test and Learn • Decisions • Action
  65. 65. Searching For Small Wins     How do we convert the abundance of ideas into testable new solutions? How radical do you want or need to be? Are we going to do something that is just incrementally better than before? Which is fine! Or something this is a “really big idea” that will “WOW” the market?
  66. 66. Remember The Continuum Of Innovation Create New Market High Risk, High Reward, Offensive Low Risk, Many Competitors Minimal Change Customer Experience, Cost Savings Strategy High Risk, Defensive Strategy Manage Existing Market Radical Change
  67. 67. With Abundant Ideas…   See how ideas emerge in new ways. Watch for ideas at the intersections.
  68. 68. Several Research-Based Models  First, Business Model Generation and Canvases Alex Osterwalder along with co-author Yves Pigneur and 470 cocreators, wrote a truly innovative bestseller on business model design and innovation.
  69. 69. A Second: Blue Ocean Strategy® Blue Ocean Strategy is a book published in 2005 and written by W. Chan Kim and Renée Mauborgne, Professors at INSEAD and Co-Directors of the INSEAD Blue Ocean Strategy Institute about how to create demand and open new market space--innovate.
  70. 70. A Third: Discovery Driven Growth Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity by Rita Gunther McGrath and Ian C MacMillan.
  71. 71. They All Share Same Starting Point  Clarity of a Business Strategy  How to turn the undesirable to the most desirable? (Maybe Bundle Pricing is ‘cool.’)  How to open new market space addressing unmet needs? (What about Men?)  How about finding non-users and new users (those newly insured, perhaps?)
  72. 72. Each Leads To… Clear, simple story. A Strategy.  With specific steps on how you are going to achieve it.  Becomes a framework, that sets forth how you are going to innovatively add value to solve a problem, perhaps open new markets and grow within them. 
  73. 73. Within That New Strategic Vision  What is it you are trying to do?  This must be clear at the beginning or ideas will wander around in searching of a reason for being — a mission.  If you do it really well what do you imagine will occur?  Visualization really matters!
  74. 74. Next, Backward Plan  The military uses it; great management consultants use it; the brain loves it.
  75. 75. Use A Game: “Remember the Future”   Begin with the end in mind and then imagine each step that you need to complete backwards to get there. Don’t start with today’s assumptions and march forward.
  76. 76. Leadership Engagement     I often begin here and repeat often. Having a clear focus and specific vision and strategies that senior-level executives embrace is essential to success. Senior leadership also needs to change its own thinking on the role of innovation in the overall success of the organization. Change core values and beliefs.
  77. 77. Discovery Driven Growth Conventional Corporate Culture Discovery-Driven Culture Success Makes your numbers; hit projections Learning as much as you can for the least possible cost Management Focus Day-to-day operations Innovation: Top of Agenda; Top of Mind Timing Dictated by budget or planning cycle Dictated by key learning checkpoints Revision Indicates a mistake Indicates a learning Funding Allocated all at once or not linked to milestones Limited to amount needed to achieve next milestone Termination Decision Delayed, avoided or reluctantly pursued Occurs as part of the planning process; disciplined disengagement
  78. 78. Convergence And Your Goals This Is Where The Ideas Really Turn To Testable Models
  79. 79. 79 Themes Emerge Diverge Emerge Converge Goals Ideas Bundles Intersections • Deconstruct today • Build an idea bank • Pull in the information from across other industries, markets, etc. • Examine • Explore • Experiment • Testable Prototypes • Include Customers in Creation Process • Test, Test, Test and Learn • Decisions • Action
  80. 80. Engage Partners
  81. 81. Include Customers
  82. 82. Ongoing Innovative Culture     Innovation is a process and you can put one into place. Four of the most damaging words an employee can say: “Aww, forget about it” It leads to a culture where we never rest on what we have always done but we search for new learnings and constant choices. Focus employees’ innovation priorities.
  83. 83. Change The Story   Story telling is very powerful. Brain loves stories to organize the facts. Innovation is all about changing the story.
  84. 84. Visualization Is Key   Brain has to see it to believe it—really!! Try to create an amazing abundance of ideas in a space in which people can express relationships between concepts, features or other priorities by manipulating objects on the visual field.
  85. 85. To Get To Your Goals  Recognize innovation as a bucket with valuable leaks.
  86. 86. 10 Steps To Remember 1. 2. 3. Begin with what you think you want to achieve— fuzzy goals are good ones. Take apart everything you do today. Divergence is key. Go explore visually, through games, through “deep hanging out” and in different places.
  87. 87. 10 Steps To Remember 4. 5. 6. Build an abundance of ideas—more you have more likely you will have great ones. Let them Emerge. At the Intersections. Engage lots of people—employees, partners, customers/patients.
  88. 88. 10 Steps To Remember 7. 8. 9. 10. Develop testable prototypes, models, visualization. Test some more. Learn from each test. Get ready to launch. But remain open to pivot and redirect. Make sure you have the metrics in place to know if it is working or you might as well start all over.
  89. 89. Innovation Comes From Inside  “If an egg is broken by outside force, life ends. If broken by inside force, life begins. Great things always begin from inside.” – Jim Kwik
  90. 90. Next Webinar March 14 At Noon EST.    Join our next webinar. Featured Speaker: Margaret Davino, Attorney and Partner, Kaufman Borgeest & Ryan, Chair Elect, New York State Bar Association Health Law Section. “As the Affordable Care Act is implemented and healthcare expenditures continue to rise, providers and payers need to explore how to best set themselves up to succeed in an evolving marketplace. In this 5th webinar, Margaret Davino will discuss how the relationships between hospitals, physicians and other providers are changing and what structures are being used for providers and payers to work together, including accountable care organizations (ACOs). Margaret will also describe the different models of collaboration between hospitals and physicians, how these affect reimbursement, and what to expect in the future.”
  91. 91. Thanks To Our Sponsor: HIxD  Healthcare Innovation by Design (HIxD) is a global network of healthcare delivery and experience innovators. HIxD is the premiere resource for healthcare innovation knowledge, networking and career development. HIxD's 6800 members are executives, entrepreneurs, clinicians, designers, architects, engineers and IT professionals.
  92. 92. Discussion And Questions   Share what you see happening in “the trenches.” Take as many questions as we can now and we can continue the discussion after the close of the webinar.
  93. 93. For More Conversation And Information Andrea J. Simon PhD Corporate Anthropologist President, Simon Associates Management Consultants asimon@simonassociates.net Office 914-245-1641 www.simonassociates.net @simonandi @andisamc

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