Path to Organizational Excellence and Culture...
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Path to Organizational Excellence and Culture Transformation – Part I Sep 21, 2016 Canadian Quality Congress, Montreal Presented by: Sumeet Kumar, B.Eng., MBA, Lean Six Sigma Black Belt, PMP, OCAI Founding Partner, KFI Management Consulting, Ontario, Canada Natalie Lepine and Micheline Demers, Managing Partners at KFI
Transcript of Path to Organizational Excellence and Culture...
Path to Organizational Excellence and Culture Transformation – Part I
Sep 21, 2016 Canadian Quality Congress, Montreal
Presented by: Sumeet Kumar, B.Eng., MBA, Lean Six Sigma Black Belt, PMP, OCAI
Founding Partner, KFI Management Consulting, Ontario, Canada
Natalie Lepine and Micheline Demers, Managing Partners at KFI
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Agenda
About KFI Simulation on Types of Change Case Study & Video on Path to
Organizational Excellence Q & A
2
Question Assumptions Bias for Action Build Relationships Creativity & Fun
KUMAR FRIENDS INC., is a management consulting firm that specializes in supporting clients in their journey to organizational excellence and culture transformation.
We are one of only three firms in Canada certified to conduct the organization culture assessment instrument, align it with strategy, and integrate it into daily operations
Sumeet NatalieMicheline
DIAGNOSE PROBLEM DEVELOP PEOPLE
TRANSFORMATION
OPTIMIZE PROCESSES AND RESOURCES
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Our Industry Experience
PEMBERTONHEALTH CENTRE
Yarn & Textiles
Agro Veterinary
Chemical/
Call Centre
Automotive
Food
Education
Healthcare Housing
Construction
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‘More Time to Care’ Clinical and Organizational Excellence at
North Bay Regional Health CentreSimulation on Types of Change
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Incremental Change
F1 F2 F3
Time
Per
form
ance
Transitional Change
F1 F2 F3
P/S 1
P/S 3
P/S 2
P/S 1
P/S 3
P/S 2
F1 F2 F3
Old State
Transition State
New State
Transformational Change
New Management System
Types of Organizational Change and their characteristics
Measurement, Analysis, and Knowledge Management
Workforce
Operations
Leadership and Strategy
Customers
Organizational Excellence and Culture Transformation
Co
ntin
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us
Imp
rove
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Case Study & Video on Path to Organizational Excellence
As one of the largest hospitals in Northeast Ontario, Canada, NBRHC was formed in 2011 through the amalgamation of a general hospital and a regional mental health centre.
The amalgamation of two hospitals came with many challenges and push back from all levels. Some of the key challenges included:
o Disparate cultural differences
o Varying management styles
o No strategic plan
o Lack of accountability and role clarity at all levels
o Departmental silo work ethic
o Culture of blame and Fear of failure
o Resource skill underutilization and over allocation
o No sense of urgency for change
• Video of More Time to Care 7
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Question Assumptions Bias for Action Build Relationships Creativity & Fun
SNAPSHOT OF WORK FEATURED AT
American Society for Quality (ASQ)
https://www.youtube.com/watch?v=8057u4Kx3Ws
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The Results: Quantitative
StrategicDirections
Metric Before(October 2013)
After(December 2014)
Wise Choices
# of Units with Performance Scorecards 0 80
# of continuous improvement projects across the organization >600 45(Focussed Priorities)
# of Over Time days paid 8.37 days 4.79 days(43% reduction)
Partnerships with Purpose
# of Partnerships with a Common Metric 0 5
% of Initiatives that include Patient/Family partners, where identified as a stakeholder
0% 100%
Access to theRight Care
% of Medication Reconciliation on admission 60.4% 83.7%
ALC (Alternate Level of Care) Acute Care 9.46%(ON Provincial Target)
2.1%
ALC (Alternate Level of Care) Mental Health 21% 13%
Emergency Department Length of Stay (EDLOS) 18 hours 9.2 hours(49% reduction)
Our People Achieving their
Best
# of Illness days per employee 13.23 10.1
% of areas conducting huddles across the organization 0% 100%
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The Results: Qualitative
• Culture of Measurement
• Organizational Focus aligned to Strategic Plan
• Shared Accountability
• Frontline Ownership
• Communication
• Transparency
• Employee Morale
• Physician engagement
• Quality of Care
• Patient & Family Involvement
• External Partnerships
• Employee Satisfaction
• Employee Development
• Leadership Development
• Visual Management
• Project Prioritization
• Successful Project Closure
• Creativity & Innovation
• Courage to Experiment
• No Blame Culture
AFTERB
EFO
RE
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How do you sustain the gains?
Part II at 3.15pm
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Q&A
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Sumeet Kumar, BEng., MBA, Lean Six Sigma Black Belt, PMP, OCAI
Founding Partner,
KFI Management Consulting
[email protected] Cell : (705) 498-7758 www.kumarfriends.com Offices in Toronto and North Bay
Path to Organizational Excellence and Culture Transformation – Part II
Sep 21, 2016 Canadian Quality Congress, Montreal
Presented by: Sumeet Kumar, B.Eng., MBA, Lean Six Sigma Black Belt, PMP, OCAI
Founding Partner, KFI Management Consulting, Ontario, Canada
Natalie Lepine and Micheline Demers, Managing Partners at KFI
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Agenda
About KFI The Missing Link to getting
results you need Q & A
14
Question Assumptions Bias for Action Build Relationships Creativity & Fun
KUMAR FRIENDS INC., is a management consulting firm that specializes in supporting clients in their journey to organizational excellence and culture transformation.
We are one of only three firms in Canada certified to conduct the organization culture assessment instrument, align it with strategy, and integrate it into daily operations
Sumeet NatalieMicheline
DIAGNOSE PROBLEM DEVELOP PEOPLE
TRANSFORMATION
OPTIMIZE PROCESSES AND RESOURCES
1616
Our Industry Experience
PEMBERTONHEALTH CENTRE
Yarn & Textiles
Agro Veterinary
Chemical/
Call Centre
Automotive
Food
Education
Healthcare Housing
Construction
How do you sustain the gains?
CULTURE
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Of respondents believe their organization’s culture is critical to business success.
Said culture is more important than company’s strategy or operating model.
Said some form of culture change is needed within their organization.
Believe their organization is in need of a major culture overhaul.
Do not think their culture is being effectively managed.
Key Findings from Research
“Culture and Change Management Survey”, conducted by Booz & Company, Nov 2013.
85%
60%
96%
51%
45%
Leaders must learn how to tap company culture as an enabler of speed, so this
essential asset can become fuel for profitable growth
in a change-driven era.
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The irony
• All organizations have budget, time and resources allocated for Operations and Strategy. However, none dedicated towards building an organization’s Culture.
Inhibitions
• Culture is typically understood as warm and fuzzy. Organizations do not know how to quantify and measure culture, and identify the gap between their current state and desired future state.
• Considering the reducing tenures of the CEO’s at any one organization, the focus tends to be towards delivering short term tangible benefits with heavy reliance on change management, continuous process improvement methodologies and HR initiatives.
Is CULTURE a resultant or a driver of Strategy and Operations?
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How organizations currently evaluate CULTURE
Team Building
Worklife Pulse
Patient satisfaction Surveys
Staff & Physician engagement SurveysLeadership Development Programs
Patient Safety Survey
Diffe
ren
tiation
and
Partn
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Innovation and
Growth Culture
Customer Oriented
and
Competitive Benchmarking Culture
Process Culture
People Culture EX
TERN
AL FO
CU
S
INTE
RN
AL
FOC
US
Stability and Control
Flexibility and freedom to act
Inte
grat
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an
d C
om
mu
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2
Defining Organizational Culture and types
Competing Values Framework
Characteristics of each Culture Type
Customer Oriented & Competitive CultureProcess Culture
People Culture Innovation & Growth
Culture
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0
10
20
30
40Flexibility
Create
External
Compete
Stability
Control
Internal
Collaborate
2. Organizational leadership
NOW PREF
0
10
20
30
40Flexibility
Create
External
Compete
Stability
Control
Internal
Collaborate
3. Management of employees
NOW PREF
0
10
20
30
40Flexibility
Create
External
Compete
Stability
Control
Internal
Collaborate
4. Organization glue
NOW PREF
0
10
20
30
40Flexibility
Create
External
Compete
Stability
Control
Internal
Collaborate
5.Strategic emphases
NOW PREF
0
10
20
30
40Flexibility
Create
External
Compete
Stability
Control
Internal
Collaborate
6. Criteria of success
NOW PREF
0
10
20
30
40Flexibility
Create
External
Compete
Stability
Control
Internal
Collaborate
1. Dominant characteristics
NOW PREF
Innovation and Growth
Customer Oriented and Competitive Benchmarking
People
Process
Innovation and Growth
Customer Oriented and Competitive Benchmarking
People
Process
Innovation and Growth
Customer Oriented and Competitive Benchmarking
People
Process
Innovation and Growth
Customer Oriented and Competitive Benchmarking
People
Process
Innovation and Growth
Customer Oriented and Competitive Benchmarking
People
Process
Innovation and Growth
Customer Oriented and Competitive Benchmarking
People
Process
6 DIMENSIONS TO MEASURE ORGANIZATIONAL CULTURE
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Innovation & Growth
Customer Oriented & Competitive Culture
Process
People
Identify gaps that are statistically significant
Avg Peo I&G C&C Pro TOTAL
NOW 39 20.5 18.7 21.8 100
PREF 35.8 26.8 21.1 16.3 100
Diff -3.25 6.33 2.35 -5.44
DC Peo I&G C&C Pro TOTAL
NOW 43 18 19.5 19.5 100
PREF 38 24.5 20.5 17 100
Diff -5 6.5 1 -2.5
OL Peo I&G C&C Pro TOTAL
NOW 39.5 19.5 15.5 25.5 100
PREF 35.5 26 20.5 18 100
Diff -4 6.5 5 -7.5
MoE Peo I&G C&C Pro TOTAL
NOW 38 25.5 17 19.5 100
PREF 37 28 21 14 100
Diff -1 2.5 4 -5.5
OG Peo I&G C&C Pro TOTAL
NOW 40 16.5 17.9 25.6 100
PREF 35.5 25.5 20.5 18.5 100
Diff -4.5 9 2.6 -7.1
SE Peo I&G C&C Pro TOTAL
NOW 32.5 27.5 16.5 23.5 100
PREF 32.5 31 20 16.5 100
Diff 0 3.5 3.5 -7
CoS Peo I&G C&C Pro TOTAL
NOW 41 16 26 17 100
PREF 36 26 24 14 100
Diff -5 10 -2 -3
DC: Dominant Characteristics, OL: Organizational Leadership, MoE: Management of Employees, OG: Organizational Glue, SE: Strategic Emphasis, CoS: Criteria of Success
MANAGERS CORPORATE MANAGERS CLINICAL DIRECTORS SENIOR EXECUTIVE TEAM BOARD
Avg Peo I&G C&C Pro TOTAL Avg Peo I&G C&C Pro TOTAL Avg Peo I&G C&C Pro TOTAL Avg Peo I&G C&C Pro TOTAL Avg Peo I&G C&C Pro TOTAL
NOW 39 20.5 18.7 21.8 100 NOW 38.9 21.8 14.3 24.9 100 NOW 23.3 17.3 22.8 36.67 100 NOW 32.9 21.1 16.5 29.52 100 NOW 35 24.8 18.3 21.8 100
PREF 35.8 26.8 21.1 16.3 100 PREF 34.7 25.4 22.4 17.5 100 PREF 29.5 24.5 22.9 23.13 100 PREF 34.3 25.3 22.8 17.62 100 PREF 36 28 20.3 16.2 100
Diff -3.25 6.33 2.35 -5.44 Diff -4.19 3.56 8.08 -7.45 Diff 6.21 7.29 0.04 -13.5 Diff 1.39 4.21 6.31 -11.9 Diff 0.5 3.17 2 -5.66
DC Peo I&G C&C Pro TOTAL DC Peo I&G C&C Pro TOTAL DC Peo I&G C&C Pro TOTAL DC Peo I&G C&C Pro TOTAL DC Peo I&G C&C Pro TOTAL
NOW 43 18 19.5 19.5 100 NOW 40 18.3 17.2 24.4 100 NOW 22.5 15 21.3 41.25 100 NOW 37.4 18.9 15.1 28.57 100 NOW 37 23 16 24 100
PREF 38 24.5 20.5 17 100 PREF 35.8 23.3 23.3 17.6 100 PREF 28.4 21.6 24 26 100 PREF 35.4 23.6 22 19 100 PREF 41 23 21 15 100
Diff -5 6.5 1 -2.5 Diff -4.22 5 6.11 -6.88 Diff 5.88 6.63 2.75 -15.3 Diff -2 4.71 6.86 -9.57 Diff 4 0 5 -9
OL Peo I&G C&C Pro TOTAL OL Peo I&G C&C Pro TOTAL OL Peo I&G C&C Pro TOTAL OL Peo I&G C&C Pro TOTAL OL Peo I&G C&C Pro TOTAL
NOW 39.5 19.5 15.5 25.5 100 NOW 40.6 20.6 12.9 26 100 NOW 26.3 15.6 24.4 33.75 100 NOW 34.3 22.1 14.3 29.29 100 NOW 38 29 18 15 100
PREF 35.5 26 20.5 18 100 PREF 35.8 26.8 20.2 17.2 100 PREF 29 24.4 23.5 23.13 100 PREF 34.3 26.9 20 18.86 100 PREF 39 27 21 13 100
Diff -4 6.5 5 -7.5 Diff -4.78 6.22 7.33 -8.78 Diff 2.75 8.75 -0.88 -10.6 Diff 0 4.72 5.71 -10.4 Diff 1 -2 3 -2
MoE Peo I&G C&C Pro TOTAL MoE Peo I&G C&C Pro TOTAL MoE Peo I&G C&C Pro TOTAL MoE Peo I&G C&C Pro TOTAL MoE Peo I&G C&C Pro TOTAL
NOW 38 25.5 17 19.5 100 NOW 47.2 19.8 9.67 23.3 100 NOW 22.5 20.6 15.6 41.25 100 NOW 37.9 15 15 32.14 100 NOW 34 23 19 24 100
PREF 37 28 21 14 100 PREF 38.6 22.1 23.4 15.9 100 PREF 28.8 25 22.8 23.5 100 PREF 35.1 25.6 22.7 16.57 100 PREF 40 26 14 20 100
Diff -1 2.5 4 -5.5 Diff -8.66 2.33 13.8 -7.44 Diff 6.25 4.37 7.12 -17.8 Diff -2.72 10.6 7.71 -15.6 Diff 6 3 -5 -4
OG Peo I&G C&C Pro TOTAL OG Peo I&G C&C Pro TOTAL OG Peo I&G C&C Pro TOTAL OG Peo I&G C&C Pro TOTAL OG Peo I&G C&C Pro TOTAL
NOW 40 16.5 17.9 25.6 100 NOW 33.3 24.4 14.4 27.8 100 NOW 18.4 16 27.5 38.13 100 NOW 31.4 18.6 20 30 100 NOW 28 22 23 27 100
PREF 35.5 25.5 20.5 18.5 100 PREF 31.3 26.8 22 19.9 100 PREF 28.5 26.9 23.5 21.13 100 PREF 38.6 23.6 21.7 16.14 100 PREF 29 29 21 21 100
Diff -4.5 9 2.6 -7.1 Diff -2 2.34 7.56 -7.89 Diff 10.1 10.9 -4 -17 Diff 7.14 5 1.71 -13.9 Diff 1 7 -2 -6
SE Peo I&G C&C Pro TOTAL SE Peo I&G C&C Pro TOTAL SE Peo I&G C&C Pro TOTAL SE Peo I&G C&C Pro TOTAL SE Peo I&G C&C Pro TOTAL
NOW 32.5 27.5 16.5 23.5 100 NOW 34.4 25.6 18.3 21.7 100 NOW 23.1 20 23.8 33.13 100 NOW 27.9 24.3 17.1 30.71 100 NOW 38 25 15 22 100
PREF 32.5 31 20 16.5 100 PREF 31.4 28.8 23.1 16.7 100 PREF 28.1 28.1 21.9 21.88 100 PREF 29.7 27.4 24.1 18.71 100 PREF 34 32 16 18 100
Diff 0 3.5 3.5 -7 Diff -3 3.22 4.78 -5 Diff 5 8.13 -1.87 -11.3 Diff 1.85 3.14 7 -12 Diff -4 7 1 -4
CoS Peo I&G C&C Pro TOTAL CoS Peo I&G C&C Pro TOTAL CoS Peo I&G C&C Pro TOTAL CoS Peo I&G C&C Pro TOTAL CoS Peo I&G C&C Pro TOTAL
NOW 41 16 26 17 100 NOW 38 22.2 13.4 26.3 100 NOW 26.9 16.3 24.4 32.5 100 NOW 28.6 27.9 17.1 26.43 100 NOW 35 27 19 19 100
PREF 36 26 24 14 100 PREF 35.6 24.4 22.3 17.7 100 PREF 34.1 21.3 21.5 23.13 100 PREF 32.6 25 26 16.43 100 PREF 30 31 29 10 100
Diff -5 10 -2 -3 Diff -2.44 2.22 8.89 -8.66 Diff 7.25 5 -2.88 -9.37 Diff 4 -2.86 8.86 -10 Diff -5 4 10 -925
DC: Dominant Characteristics, OL: Organizational Leadership, MoE: Management of Employees, OG: Organizational Glue, SE: Strategic Emphasis, CoS: Criteria of Success
INNOVATION & GROWTH
Culture of continuous quality improvement not established
Weak creative problem solving muscleUntapped new business opportunities
‘Fear to Innovate & Change’ CultureInability to leverage partnerships
No Systems Thinking approachLack of service innovations
Low revenueStagnate growth
CUSTOMER ORIENTEDNESS & COMPETITIVE BENCHMARKING
No Strategic PlanFunding Deficit
No roadmap to Patient Centered CareLow Patient Satisfaction scores
Lack of or too many metricsInability to meet industry benchmarks
Lack of Strategic FocusService alignment issues
Core business not clearly defined
PROCESS
Competing PrioritiesProcess inefficienciesFlow and intake issuesUnderutilized resources Inaccessibility to servicesInadequate process improvement results Low return on investmentPerson dependent processesLack of sustainability‘Fear of failure’ Culture
PEOPLE
Low morale Lack of engagementOvertime & absenteeismInterpersonal conflictsFrontline disconnected from strategySkill, knowledge and ability gapsLack of accountabilityDepartmental silosLack of TrustCulture of Blame LEADERSHIP
COMMITMENT
Incremental Change
F1 F2 F3
Time
Per
form
ance
Transitional Change
F1 F2 F3
P/S 1
P/S 3
P/S 2
P/S 1
P/S 3
P/S 2
F1 F2 F3
Old State
Transition State
New State
Transformational Change
New Management System
Types of Organizational Change and their characteristics
Measurement, Information Systems, and Knowledge Management
Workforce
Operations
Leadership and Strategy
Customers
Organizational Excellence and Culture Transformation
Co
ntin
uo
us
Imp
rove
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Improved QualityAn organization that empowers people at all levels to optimize their work processes to free up time for
care, and partner with patients to improve patient experience.
Measurement and Information Systems
Monthly Performance Scorecard Review Benchmarking and Reflection Cross Pollination
PeopleEducation and
CoachingTeam Huddles
Recognition and Development Reviews
Individual Performance Measures
Leader Standard Work
Team Report Outs
ProcessesVisual
ManagementTeam-based Creative
Problem SolvingManaging to
DemandNo Meeting
ZoneGo See and
LearnDaily Status
sheetStandard Work
Observation
Standard Work for Key Unit Level
Processes
Leadership and Strategy
Hospital Report Card Team Performance Scorecard Systems Thinking Change Management
Patients
Patient and Family Partnered Care Practices
More Time To Care Management SystemGuided by our patients and led by our people & partners, we travel together on our journey towards excellence
Co
ntin
uo
us
Imp
rove
men
t P
DSA
Cyc
les
North Bay Regional Health Centre: 400 bed hospital in North East Ontario, Canada
Example: Lean Management System elements
People
Process
Customer
Financial
StrategicDirection
StrategicObjectives
StrategicInitiatives
PotentialProjects
Big Dot Measures
f
SO 1
SO 2
SO 3
A1
A2
A3
A4
A5
a
b
c
d
e
A1a.1
Improvement Projects
Improvement Projects
A1a.2 A1a.3
A4c.1 A4c.2 A4c.3
A6All Projects must connect
Innovation & Growth
Customer Oriented & Competitive Culture
Process
People
Desired CultureAlign and Integrate Culture with Strategy Align and Integrate Culture with Operations
How Culture Supercharges Quality Improvement
YES YES
NO
NO
Yes Yes Yes
No No No
Pilot
PDSA cycles
Cycle through PDSA until Reliability threshold > 80% met
100% of the process steps are completed 80% of the time (with agreed sample size)
RELIABILITY PHASE SUSTAINABILITY PHASE
> 80% Reliability SustainedMEASURE
Process MetricOutcome MetricBalancing Metric
30 day intervals for 90 days
Standard Work Observation
Relibilitythreshold
met
> 80% Reliability SustainedMEASURE
Process MetricOutcome MetricBalancing Metric
Continuous Improvement
Project
Management System Elements
Reliabilitythreshold
met
Sustained to 90 days
LEVELS OF BEHAVIOUR ADOPTION DEFINE SUSTAINABILITY OF CULTURE
Levels of Maturity
Level 1:
Learn
Cycle throughPDSA until
level 1 criteria met
Education to > 80% of staff
All criteria met?
Level 3:
Align
Cycle throughPDSA until
level 3 criteria met
> 60% of staff using tool
Level 2:
Apply
Cycle throughPDSA until
level 2 criteria met
> 40% of staff using tool
Level 4:
Integrate
Cycle throughPDSA until
level 4 criteria met
> 80% of staff using tool
All criteria met?
All criteria met?
Diffe
ren
tiation
and
Partn
ersh
ip
Innovation and
Growth Culture
Customer Oriented and
Competitive Benchmarking CultureProcess Culture
People Culture
EXTER
NA
L FOC
US
INTE
RN
AL
FOC
US
Stability and Control
Flexibility and freedom to act
Inte
grat
ion
an
d C
om
mu
nic
atio
n
Ask yourself
Do you have the culture that will get
the new results you need to
achieve?
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Q&A
32
Sumeet Kumar, BEng., MBA, Lean Six Sigma Black Belt, PMP, OCAI
Founding Partner,
KFI Management Consulting
[email protected] Cell : (705) 498-7758 www.kumarfriends.com Offices in Toronto and North Bay
