2 developing hr metrics to drive high performance...
TRANSCRIPT
9/4/2011
1
1
Developing HR Metrics to Drive High Performance
sSeptember 15, 2011
Janet L. Walsh
Outline
How To Work With Metrics
Example: Health Care Metrics
Workout Session: Individual Metric Creation
2
How to Work With Metrics
Why Use Metrics?
GIGO
The Bottom Line in Business
Obtaining Data
Communicating with CEO’s
Dashboards and Scorecards
3
9/4/2011
2
The Bottom Line in Business
What are the key organizational metrics for your business?
4
Obtaining DataSources of Comparative Data
EBASCO Host-On Line Data Base
Develop internal analysis of data-not just company surveys
On Line References
Government Statistical Data
Federal, State, Local and Foreign Governments
SHRM Websites
Industry Associations
Consulting Partners
IIBA
5
Communicating with CEO’s
CEO’s Focus on Three Key Issues Increase revenues
Reduce costs
Improve operating efficiency
Dashboards/Scorecards/Metrics
Communication and knowledge-sharing ensures that C-level executives understand the considerable gap between actual customer experience metrics and C-Suite knowledge1
61. “Bridging the C-Level Gap”, By: Hash, Susan. Customer Management Insight, Jul2008, p5-5, 1/2p
9/4/2011
3
Scorecards vs. Dashboards
Scorecards Measures and manages
progress toward strategic objectives
Provides internal and industry benchmarks, goals and targets
Spans operational, tactical and strategic aspects
Dashboards Visual indication of key
performance metrics
Simple, visual indicators
Communicate performance data
May measure non-financial aspects of business performance i.e. customer satisfaction
7
8http://www.dashboardzone.com/hospital-dashboard-metrics-and-scorecard-for-hospital-managment-dashboards
Hospital Dashboard
“Balanced” Scorecard
Financial Cash Flow Return on Investment Financial Results Return on Capital Employed Patient Care Hours
Customer Delivery Performance to
Customer Quality Performance Customer Satisfaction Physician Loyalty
Internal business processes Unit Efficiency Accident Ratios Infection Rates Equipment Effectiveness
Learning and growth Internal Promotions Employee Turnover Gender Ratios Bench Strength
9
9/4/2011
4
Developing High Performance HR Metrics for a Hospital
Review Environmental Trends, Specific Issues, Concerns of CEO, Hospital Metrics, HR Trends
Hospital Staffing Metrics
HR Programs to Improve Staffing Metrics
10
Environmental Trends
11
Productivity and CostDemographics
Globalization
Aging Workforce
Staffing Shortages
Medical Tourism
Legal/Political
“Say on Pay”
Social Legislation
Healthcare Legislation
Quality Focus
Technology
Branding
Social Networking
HITECH ACT
HRIS/ERP Systems
Environmental Trends
12
Productivity and CostLegal/Political TechnologyDemographics
9/4/2011
5
Specific Issues Confronting Hospitals AHA Survey
Medicaid reimbursement
Bad debts
Medicare reimbursement
Increasing costs for staff, supplies, etc.
Inadequate funding for capital improvements
Managed care payments
Other commercial insurance reimbursement
Medicaid
Advocacy for funding
Underwriting costs
Reaching out to all community members
Response to other hospital closings
Increasing numbers
Emergency department overuse
13
Specific Issues Confronting Our Business
Key Issues Key Issues
Concerns of Hospital CEO’s
Issue 2009 2008 2007Financial challenges 76 77 71
Healthcare reform implications 53 - -
Care for the uninsured 37 41 38
Patient safety and quality 32 43 -
Governmental mandates 30 26 22
Physician-hospital relations 25 32 35
Patient satisfaction 15 22 17
Personnel shortages 13 30 30
Capacity 7 16 11
Technology 7 9 8
“CEO Survey”, Healthcare Executive; Mar/Apr2010, Vol. 25 Issue 2, p98-98, 1p 15
9/4/2011
6
Concerns of the CEO
Issue 2010 2011 2012
16
Key Hospital Metrics
Financial strength
Profitability
Liquidity
Debt-to-asset ratio
Times interest earned ratio
Age of physical facilities (accumulated depreciation to gross fixed assets)
Medicare length of stay (ease mix adjusted)
Hospital charge index
Inpatient surgery percentage
Market share percentage
Change in Medicare case mix index
Nongovernment inpatient days
Hospital cost index
Net patient revenue per FTE
17
Key Business Metrics
Financial strength
Profitability
Liquidity
Debt-to-asset ratio
Market share percentage
18
9/4/2011
7
HR Trends
Economic conditions
Health Care Reform
“Say on Pay” Legislation
Political Trends
Legal Trends
HR as business partner
HR performance
Social and demographic changes
Technological changes
HRIS and ERP systems
Social networking
“Brand” ownership
Green Initiatives
19
HR Trends
Economic conditions
Health Care Reform
“Say on Pay” Legislation
Political Trends
Legal Trends
HR as business partner
HR performance
Lean
Social and demographic changes
Technological changes
HRIS and ERP systems
Social networking
“Brand” ownership
Green Initiatives
Cost Sharing
20
Hospital Staffing Metrics
Vacancy rates as a percentage of totals
Annualized voluntary turnover
Voluntary turnover as a percentage of total
Average tenure for voluntary turnovers
Requisitions closed per month
Internal transfers
Cycle times for recruiter reviews
Percentage of background checks
Manager reviews
Total cycle time for hiring
21
9/4/2011
8
Our Company’s Key Metrics
1.
2.
3.
4.
5.
6.
7.
22
Insufficient Employee Metrics
23
HR Metrics
Employee Satisfaction
Turnover
Better HR Metrics
24
Key Industry Metric
Net Patient Revenue/Infection Rate
Key Hospital Metric
Nurse Satisfaction
HR Metric
Nurse Turnover
9/4/2011
9
Nurse Satisfaction Cost Metrics
25
Staffing Metrics
26
Key Industry Metric-Adverse Outcomes
Key Hospital Metric-Length of Stay
HR Metric-Available Nurse Hours
Availability of Nursing Staff, Net Revenue and Adverse Outcomes
27
9/4/2011
10
Staffing Metrics
28
Key Industry Metric-Profitability
Key Hospital Metric-Personnel Costs
HR Metric-Involuntary Turnover
Hospital Profitability and Non-Nurse Turnover
29
Company Metrics
9/4/2011
11
Top employees are attracted by...A winning profile of high performance, recognition in the marketplace and a strong sense of direction
Emphasis on career or technical training, interesting and creative work with clear opportunities for advancement
Unique and leading HR practices, strategy integrated HR systems and employment “branding”
Compelling argument to join
An open and fair organizational culture and environment that place a premium on innovation and creativity and values diversity and individuality
Competitive reward strategies that are linked to performance
Innovative benefit plans that are designed to meet individual needs
Well trained managers who can inspire
31
Top Retention Techniques
Management Training
Challenging Work
Cross Functional Teams
Recognition
Pay/Rewards
Flexible Benefits…ski passes
Company Reputation
Increase Training-State/Business Partner/On Line
32
Conclusion…
Use business specific and focused metrics
Know your CEO Maximize the use of
internal cause and effect analysis
Publically measure your progress on key metrics
Distinguish between process and strategy in your metrics
Develop professional competency and strategic planning skills
9/4/2011
12
Janet L. WalshVice President Human Resources
Minerals Technologies622 Third Avenue
New York, NY 10506Phone: 212 878 1878
Full Slides These are some of the slides already provided in the 3‐slides per page. They are intended to provide a better view of the detail.
9/4/2011
1
8http://www.dashboardzone.com/hospital-dashboard-metrics-and-scorecard-for-hospital-managment-dashboards
Hospital Dashboard
9/4/2011
2
“Balanced” Scorecard
Financial Cash Flow Return on Investment Financial Results Return on Capital Employed Patient Care Hours
Customer Delivery Performance to
Customer Quality Performance Customer Satisfaction Physician Loyalty
Internal business processes Unit Efficiency Accident Ratios Infection Rates Equipment Effectiveness
Learning and growth Internal Promotions Employee Turnover Gender Ratios Bench Strength
9
9/4/2011
3
Specific Issues Confronting Hospitals AHA Survey
Medicaid reimbursement
Bad debts
Medicare reimbursement
Increasing costs for staff, supplies, etc.
Inadequate funding for capital improvements
Managed care payments
Other commercial insurance reimbursement
Medicaid
Advocacy for funding
Underwriting costs
Reaching out to all community members
Response to other hospital closings
Increasing numbers
Emergency department overuse
13
9/4/2011
4
Nurse Satisfaction Cost Metrics
25
9/4/2011
5
Hospital Profitability and Non-Nurse Turnover
29