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1 First: Second: Preparing organization for the future is the key - PDF document

Hunkering down or Staying the Course Not betting on particular future, then devising a strategy to reach David M. Lawrence Not short-termingcutting costs, finding the February 2015 next profit center, or following crowd to


  1.  Hunkering down or Staying the Course…  Not betting on particular future, then devising a strategy to reach… David M. Lawrence  Not short-terming…cutting costs, finding the February 2015 next profit center, or following crowd to consolidate and/or buy doctor’s practices…  Identify many possible futures (scenarios)…  Strong, resilient, responsive, innovative organization (people, balance sheet, margins, reputation, ties to communities, innovation  Build organizational capacity to succeed engine, etc.) under widest range of them…  Obsessed with delivering the best care  Consistent with critical outcomes and values possible to every patient, every family, every that define you and determine your future consumer, and the communities you serve. success…  Best possible care  Scenario-based planning…  Innovation  Four interlocking, often synergistic capabilities…  Competitive Intelligence and Responsiveness  Building and strengthening these capabilities over time  Strong margins 1

  2.  First:  Second:  Preparing organization for the future is the key job of leaders…Board, management, clinical leaders…everyone responsible for ensuring a future  Arthur Ashe: “You start where you are, use what you for your organization. have, and do the best you can.”  Even with good balance sheet, strong margins, and exciting new profit centers, the job of leadership is incomplete until these capabilities are established.  Leaders, then, must manage the short term while laying groundwork for the future.  Especially challenging in healthcare.  Goal: establish explicit boundaries around  Best Possible Care “what ifs”.  Safest and most effective, timely, responsive, efficient and equitable care we know, can find, or can discover.  Open minds of those involved to how well  Care that improves quality of life for patient, lowers organization positioned to respond. the costs of care, and improves the health of the community (Triple Aim)  Agree on key steps must take to build the  Results from relentless elimination of waste…poor capacity required to address those scenarios. quality…through focus on elimination of unnecessary and/or inappropriate variation in care and care  Recommit to values and core capabilities that processes…the underlying driver of costs and the are non-negotiable. major cause of harm, poor outcomes and poor experiences.  Exercise and dialogue as important as  An unending journey. outcomes.  Variation often misunderstood, especially by  Innovation clinicians…  Discovering or finding, anywhere we can, then  Key words: “unnecessary” and inappropriate” adopting as appropriate, new and better ways of doing  Every step in care process must be subjected to that test by what we do now. those who know and those affected.  Purposeful and directed, encouraging spontaneity and  Rarely able to limit clinical decision-making to single path. creativity. Must construct variation limits based on evidence and clinical consensus.  Requires staffing, funding, flexibility and agility  Most if not all non-clinical decision-processes (steps) can and should be standardized.  But always with ability to “pull the cord”, stop the process, step beyond limits as necessary. 2

  3.  Competitive Intelligence (and ability to  Margin Protection respond)  Margin is what’s left over after expenses are paid.  Drives financial stability, ability to reinvest, and to  Know and follow what all possible competitors are grow. doing, and understand potential impact on organization if succeed.  No margin, no mission.  Constant vigilance, discussion, debate, analysis in  Top line growth getting harder order to respond appropriately.  So bottom line (cost management) increasingly critical  Critically important because healthcare is shifting from to maintain margins. small and incremental impacts from competitive threats to large, lumpy losses because of providers and/or consumers switching in blocks.  Systems  Explicit, designed, managed, accountable, focused, practical, robust, local and nested in  Partnerships core values and aspirations of the organization.  Personal Leadership  Language  Language  Learning  What you say about and do in your organization: its values, purpose and direction.  Transparency  Requires attention to words, phrases, actions,  Innovation symbolism, stories.  Information  Must assess relative weight of words and phrases: especially mixing “quality”, “patient satisfaction” and  Prods “costs”…(for clinicians “costs” especially loud and  Accountability and Compensation troublesome.  Operating Discipline 3

  4.  Learning  Transparency  Enables organization to learn, discover, challenge,  Enables you and everyone in the organization to know debate. what is happening and why; how you are performing; how you are threatened by competition and other  Focused on operations, scenarios, and competitors. outside forces, etc.  Defined accountabilities and budget.  Enables people outside the organization to see into the  Method for capturing and disseminating learning organization and its performance.  And trying, failing, and learning from mistakes.  “No secrets” within reason…  Protect organization as required but err on side of disclosure.  Protect the rights and privacy of individuals within the organization or once associated with the organization.  Innovation  Information  Already discussed  The data, information and insights needed to run, assess, correct, and learn.  Both the care itself, and the operation of the organization and its parts.  A strategic and operationally driven system not a product.  Prods  Accountability and Compensation  Organizational “Picadores”: provoke, weaken, forestall  A communications tool: reinforces mission, values, tendency to spring-back to prior behaviors objectives.  Institutes, internal and external consultants and  Rewards what the organization needs and values. experts.  Group incentives wherever possible (including with physicians) as opposed to individual incentives.  Quality gate. 4

  5.  Operating Discipline…the big one  Difficult to design, implement and manage.  Especially difficult to drive into the  The overarching system (not a tool)  One not many organization.  Focuses on how work is done everywhere  Cannot be done alone or by the Executive  Enables best care possible. Team of the organization. Must engage all  Teachable and reproducible the constituents working in and affected by  Analytical and data driven the organization.  This means Partnerships…  Best Known System for Healthcare: Six Sigma. Also the hardest.  Board of Directors  Board of Directors  Accountable for values, objectives, performance, and  Executive Team future  Employ the executive team  Keepers of the moral/integrity of the organization  Physicians  Thought partners for Executive and Executive Team  Workforce  Patients, Families, Consumers, and Community  Executive Team  Physicians  Built to have diverse skills, perspectives, backgrounds,  Common Ground essential. styles…not diverse values.  Acknowledge and honor overlapping ethical  Encouraged to debate and disagree both in camera and frameworks: the best for each patient vs. the best for throughout the organization. the organization, in order to reach the most appropriate solution for a particular issue or problem.  Encouraged to bring feedback to team from their natural constituencies.  Engage, engage, engage.  Named members: CFO and HR Leader. Others depend  Honor, honor, honor on organization.  Remove cancers. 5

  6.  Patients, Families, Consumers, Communities  Workforce  “Marinate in their voices”  Same as physicians  The super glue for your organization (the “heart” of the  Engage, engage, engage matter)  Honor, honor, honor  The most powerful lever for change you have.  The LMP experience  The most powerful source of support against competitors you can have.  Ordered, educated, coached, and routinely and formally part of decisions at four levels  1. Individual clinical decisions  2. Assessment and design of clinical systems  3. Assessment of organizational performance  4. Participation in organizational strategy and decision- making.  Board of Directors  Preparing and Leading  Executive Team  First Steps  Physicians  Maintaining Focus and Drive  Workforce  Maintaining Personal Health  Patients, Families, Consumers, and  Managing Loneliness Communities  Preparing and Leading  First Steps  Your moral core  Resignation Date  Your flat spots…strengths and weaknesses in skills,  Succession Plan experience, and perspective.  Communications Network…listening instead of doing 6

  7.  Managing focus and drive  Managing Personal Health  True north as the primary source  Exercise, diet, sleep  Private/quiet time and space  Family…a safe harbor  Managing Loneliness  Uncertain future.  Maintaining perspective…family, partner, hobbies  Specific capacities required to create  Recognizing the symptoms so can resist the need to organizational flexibility and responsiveness. become part of the crowd.  To build need systems, partnerships, and  Other leaders…the value of social networks. personal leadership.  Read.  A moral journey without end.  The primary job of organizational leaders. 7

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