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ACHA Innovation & Baldrige program panel slides FINAL v1 (1)

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ACHA Innovation & Baldrige program panel slides FINAL v1 (1)

  1. 1. 8/17/2015 1 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework American College of Healthcare Architects / Academy of Architecture for Health Summer Leadership Series – The Role of Innovation in Healthcare – July 18th, 2015 Mark Erath, CPA, CGMA, FACHE, FHFMA Senior Examiner, Baldrige Performance Excellence Program Independent Performance Excellence Consultant Harry Hertz, PhD, FAAAS, HFACHE Director Emeritus, Baldrige Performance Excellence Program National Institute of Standards and Technology Michael Pulido, SPHR Chief Administrative Officer Mosaic Life Care – 2009 Malcolm Baldrige National Quality Award Winner 1 Results  Change your thinking with knowledge, insights  Empower you to use unique talents differently  Inspire you to be an active innovation partner Process  Describe context of our Baldrige journey  Explain innovation through the Baldrige lens  Interactive discussion Breakthrough Healthcare Innovation and the Baldrige Excellence Framework 2
  2. 2. 8/17/2015 2 Thank you, customers, for your valuable impact upon the healthcare field, patients, families and society!  ACHA’s vision: Transform healthcare through better built environments. (You deliver unique value!)  Unique disciplines: planning, designing, programming, integrating, managing change, executing vision  Unique talents: knowledge, creativity, objectivity, judgment, practical science, rigor, collaboration  Unique contributions: wisdom, perspective, possibility champions, constraint navigators, vision translators  Unique relationships, role: trusted advisors, partners, innovators – ahead of the curve Breakthrough Healthcare Innovation and the Baldrige Excellence Framework 3 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Form In this period of transformational change, given that the drivers haven’t changed… Function How do we discern the ever-changing answers to the questions of value…  What does it mean to really perform?  What does it mean to be really excellent?  What does it mean to innovate? We have a system that can help you determine the answers. 4 Strategy
  3. 3. 8/17/2015 3 Core Values and Concepts Systems perspective Delivering value and results Visionary leadership Ethics and transparency Patient-focused excellence Organizational learning & agility Focus on success Managing for innovation Management by fact Valuing peopleSocietal responsibility Breakthrough Healthcare Innovation and the Baldrige Excellence Framework PROCESSES RESULTS PERFORMANCE EXCELLENCE ROLE MODELS What’s distinctive about the Baldrige framework?  A comprehensive system to improve performance: proven, universal, scalable, non-prescriptive  A highly selective award, with objective criteria scoring to distinguish the truly excellent 5 Baldrige Performance Excellence Scoring System - Category Point Values 1 Leadership 120 2 Strategy 85 3 Customers 85 4 Measurement, Analysis, & Knowledge Management 90 5 Workforce 85 6 Operations 85 7 Results 450 Total points 1,000 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Processes: 550 points Holistic The “how” of innovation processes & “what” of innovation results integrate across all 7 categories. 6
  4. 4. 8/17/2015 4 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Innovation (requires people & processes) Making meaningful change to improve health care services, processes, or organizational effectiveness & create new value for stakeholders.  Discontinuous, breakthrough change  Transformational: new performance dimensions  New, or new to its application  Includes adaptations from other industries  Supported by the performance improvement system: not just the purview of researchers  Integrated in daily work, organization-wide collaboration. Learning culture; team wisdom.  Pervasive practical relevance: ideas, organizational structure, business model, services, work systems, care delivery and support processes, therapies, facility design, technology  Complementary to, but different from, incremental continuous improvement 1) Idea development & knowledge sharing 2) Decision to implement 3) Implement4) Evaluate 5) Learn Systems Perspective: Managing for Innovation Strategic Opportunity Identification Agile, Supportive Environment Intelligent Risk Pursuit (Wisdom, Will) I = IR + SE 7 Steps toward Mature Processes Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Reacting to Problems (0–25%) 1 Early Systematic Approaches (30–45%) 2 Aligned Approaches (50–65%) 3 Integrated Approaches (70–100%) 4 8
  5. 5. 8/17/2015 5 From Fighting Fires to Innovation: An Learning Analogy Breakthrough Healthcare Innovation and the Baldrige Excellence Framework 9 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework How does Baldrige distinguish an organization’s innovation excellence? Organizational profile: What role do suppliers, partners & collaborators play in contributing and implementing INNOVATIONS in your organization? What KEY changes are affecting your competitive situation, including changes that create opportunities for INNOVATION and collaboration, as appropriate? Category 1: Leadership processes How do your senior leaders create an environment for INNOVATION and INTELLIGENT RISK taking, achievement of your STRATEGIC OBJECTIVES, and organizational agility? HOW do SENIOR LEADERS create a focus on action that will improve the organization’s PERFORMANCE, achieve INNOVATION and INTELLIGENT RISK taking, and attain its VISION? 10
  6. 6. 8/17/2015 6 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework How does Baldrige distinguish an organization’s innovation excellence? Category 2: Strategy Development processes HOW does your strategy development PROCESS stimulate and incorporate INNOVATION? Category 4: Measurement, Analysis, and Knowledge Management processes HOW do you use findings from PERFORMANCE reviews to develop priorities for continuous improvement and opportunities for INNOVATION? HOW do you DEPLOY these priorities and opportunities? HOW do you manage organizational knowledge? HOW do you assemble and transfer relevant knowledge for use in your INNOVATION and strategic planning PROCESSES? Category 5: Workforce processes HOW does your learning and development system support organizational PERFORMANCE improvement, organizational change, and INNOVATION? 11 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework How does Baldrige distinguish an organization’s innovation excellence? Category 6: Operations processes HOW do you manage for INNOVATION? HOW do you pursue the STRATEGIC OPPORTUNITIES that you determine are INTELLIGENT RISKS? HOW do you make financial and other resources available to pursue these opportunities? HOW do you discontinue pursuing opportunities at the appropriate time to enhance support for higher-priority opportunities? Category 7: Results What are your current LEVELS and TRENDS in KEY MEASURES or INDICATORS of the operational PERFORMANCE of your KEY WORK and support PROCESSES, including PRODUCTIVITY, CYCLE TIME, and other appropriate MEASURES of PROCESS EFFECTIVENESS, efficiency, and INNOVATION? How do these RESULTS compare with the PERFORMANCE of your competitors and other organizations with similar PROCESSES? 12
  7. 7. 8/17/2015 7 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework  Established by Congress in 1987 to recognize U.S. companies for their achievements in quality and business performance and to raise awareness about the importance of quality and performance excellence in gaining a competitive edge  Only public-private partnership and Presidential award and education program dedicated to improving U.S. organizations  Malcolm Baldrige National Quality Award is the highest level of national recognition for performance excellence that a U.S. organization can receive  Originally included manufacturing, service, and small business organizations; education and health care organizations added in 1998. Nonprofit organizations, including government agencies, in 2007  To receive the Baldrige Award, an organization must have a role-model organizational management system. The award is not given for specific products or services Key Facts About the Baldrige Performance Excellence Program 13 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework  From 1988 through 2014, more than 1,600 applications have been submitted for the Malcolm Baldrige National Quality Award.  Separately, over 11,000 applications have been submitted to allied programs administered at the State, Regional and Local level.  Ninety-nine organizations from a wide variety of industries have received the national award: 6.1% of national award applications submitted resulted in award recognition.  Six organizations received the national award twice.  Four-hundred and nine health care organizations applied for the national award from 1999 (first application submitted) through 2014, of which nineteen, or 4.6%, earned award recognition. Key Facts About the Baldrige Performance Excellence Program http://www.nist.gov/baldrige/ 14
  8. 8. 8/17/2015 8 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Malcolm Baldrige National Quality Award Winners – Health Care Sector http://www.nist.gov/baldrige/ 2014 Hill Country Memorial (TX) St. David’s HealthCare (TX) 2013 Sutter Davis Hospital (CA) 2012 North MS Health Services (MS) 2011 Henry Ford Health System (MI) Schneck Medical Center (IN) Southcentral Foundation (AK) 2010 Advocate Good Samaritan Hospital (IL) 2009 AtlantiCare (NJ) Mosaic Life Care (MO) 2008 Poudre Valley Health System (CO) 2007 Mercy Health System (WI) Sharp HealthCare (CA) 2006 North MS Medical Center (MS) 2005 Bronson Methodist Hospital (MI) 2004 RW Johnson Univ. Hospital Hamilton (NJ) 2003 Baptist Hospital, Inc. (FL) Saint Luke's Health System (MO) 2002 SSM Health Care (MO) 15 16 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Lower Health Care Costs, Improved Quality Baldrige hospitals: • 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 7 100 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. http://www.nist.gov/baldrige/upload/baldrige-hospital-research-paper.pdf. Demonstrated Value of the Baldrige Program in Healthcare
  9. 9. 8/17/2015 9 17 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Adoption of Baldrige Practices • 100 Top 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. http://www.nist.gov/baldrige/upload/100-Top-Hosp-CEO-Insights-RB-final.pdf. Demonstrated Value of the Baldrige Program in Healthcare 18 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Adoption of Baldrige Criteria By 2018, 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 2013-2018. American Hospital Association, Society for Healthcare Strategy & Market Development. http://www.nist.gov/baldrige/upload/Futurescan-2013-p44-2.pdf. Demonstrated Value of the Baldrige Program in Healthcare
  10. 10. 8/17/2015 10 19 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Probortunity* • The Unity between Problems and Opportunity - Looking at Ways to Turn Problems into Opportunities • The “Easiest” Change to Accomplish * Gerry Sandusky, http://www.qualitydigest.com/inside/quality-insider-column/probortunities.html 20 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Stratovation • The Unity between Innovation and Strategy - Strategy: your organization’s approach to the future - Innovation: adopting an idea, process, product, or business model that is new - Strategy Is about Clarity in Direction; Innovation Is about Possibility • You Need Ongoing Innovation Efforts to Feed Organizational Strategy • A Harder Process to Implement and Sustain Stratovation
  11. 11. 8/17/2015 11 more than health care … life care 21 https://www.mymosaiclifecare.org/ 22 more than health care … life care https://www.mymosaiclifecare.org/
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  14. 14. 8/17/2015 14 27 Breakthrough Healthcare Innovation and the Baldrige Excellence Framework Mark Erath, CPA, CGMA, FACHE, FHFMA Senior Examiner, Baldrige Performance Excellence Program Independent Performance Excellence Consultant mark.e.erath@gmail.com 703-673-6971 Harry Hertz, PhD, FAAAS, HFACHE Director Emeritus, Baldrige Performance Excellence Program National Institute of Standards and Technology hertzhs@gmail.com 301-975-5312 Michael Pulido, SPHR Chief Administrative Officer Mosaic Life Care – 2009 Malcolm Baldrige National Quality Award Winner michael.pulido@mymlc.com 816-271-7535 Interactive Discussion 28 Resources: Mosaic Life Care https://www.mymosaiclifecare.org/ • Mosaic Life Care National Institutes Baldrige Performance Excellence Program http://www.nist.gov/baldrige/ • Baldrige Performance Excellence Framework, other publications and self-help tools • Malcolm Baldrige National Quality Award applicant information (application summaries) • Participation as a Member of the Board of Examiners, or as an MBNQA Applicant Breakthrough Healthcare Innovation and the Baldrige Excellence Framework

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