RPM - Case for Excellence
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Building and Implementing a Balanced Scorecard at Mid-Valley Hospital A Tool for Continuous Improvement RPM Rural Performance Management, LLC a Stroudwater Associates company 443 Congress Street Portland, Maine 04101 (207) 756-6090 ext. 227 (800) 947-5712 Toll Free
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Transcript of RPM - Case for Excellence
Building and Implementinga Balanced Scorecard at Mid-Valley Hospital
A Tool for Continuous Improvement
RPMRural Performance Management, LLC
a Stroudwater Associates company443 Congress Street
Portland, Maine 04101(207) 756-6090 ext. 227(800) 947-5712 Toll Free
RPM Balanced Scorecard: Continuous Improvement Tool
Improvement Doesn’t Just Happen
Finances
Processes
Customers
People
RPM Balanced Scorecard: Continuous Improvement Tool
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)
RPM Balanced Scorecard: Continuous Improvement Tool
9 of 10 Companies Fail to Execute Strategy
Four Barriers toStrategy
Execution
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
Kaplan and Norton’s The Strategy Focused Organization
RPM Balanced Scorecard: Continuous Improvement Tool
Bridging the Gap Between Strategy & Action
MISSION
VALUES
VISION
STRATEGY: Our game plan
The Balanced ScorecardSTRATEGIC INITIATIVES: What we need to do
STRATEGIC OUTCOMES
SatisfiedCOMMUNITY
Delighted CUSTOMERS
Efficient &Effective
PROCESSES
Motivated &Prepared
WORKFORCE
PERSONAL OBJECTIVES: What I need to do
RPM Balanced Scorecard: Continuous Improvement Tool
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
RPM Balanced Scorecard: Continuous Improvement Tool
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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
RPM Balanced Scorecard: Continuous Improvement Tool
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
RPM Balanced Scorecard: Continuous Improvement Tool
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.
RPM Balanced Scorecard: Continuous Improvement Tool
Measurement communicates, it does not control
Measurement communicates, it does not control
Financial Perspective
•Profitability•Growth •Operational Efficiency
MissionVision & 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
Mapping Strategic Outcomes
Measurement is the language that gives clarity to vague concepts
Measurement is the language that gives clarity to vague concepts
Finances
Processes
Customers
People
RPM Balanced Scorecard: Continuous Improvement Tool
Strategy Map Example
“Through long term sustainability (including financial), we will seek to improve the health opportunities for county residents.”
“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 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 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.”
“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.”
RPM Balanced Scorecard: Continuous Improvement Tool
Review PastPerformance
(40%)
DiscussImplications
(30%)
Review StrategicIssues(30%)
PRESENT(Event-Driven Learning)
THE QUARTERLY REVIEW MEETING
The Balanced Scorecard Collaborative
Shift Focus to Strategy
FUTURE(Continuous Learning)
BETWEEN THE MEETINGS
THE QUARTERLY STRATEGIC
REVIEW MEETING
• Provide input to strategic issues currentlybeing worked
DiscussImplications
(30%)
Review StrategicIssues(60%)
• 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 PastPerformance (10%)
RPM Balanced Scorecard: Continuous Improvement Tool
The Right Thing at the Right Time
RPM Balanced Scorecard: Continuous Improvement Tool
Results Are What Count!
The Balanced Scorecard is quick, efficient, proactive and provides a common language for organizational improvement.
Finances
Processes
Customers
People
RPMRural Performance Management, LLCa Stroudwater Associates company443 Congress StreetPortland, Maine 04101(207) 756-6090 ext. 227(800) 947-5712 Toll Free
