acha innovation & baldrige program panel slides final v1 (1)

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Breakthrough HealthcareInnovation and the Baldrige Excellence Framework

American College of Healthcare Architects / Academy of Architecture for HealthSummer Leadership Series – The Role of Innovation in Healthcare – July 18th, 2015

Mark Erath, CPA, CGMA, FACHE, FHFMASenior Examiner, Baldrige Performance Excellence ProgramIndependent Performance Excellence Consultant

Harry Hertz, PhD, FAAAS, HFACHEDirector Emeritus, Baldrige Performance Excellence ProgramNational Institute of Standards and Technology

Michael Pulido, SPHRChief Administrative OfficerMosaic Life Care – 2009 Malcolm Baldrige National Quality Award Winner

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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


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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


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Form

In this period of transformational change, given that the drivers haven’t changed…

FunctionHow 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.

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Strategy

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Core Values and Concepts

Systems perspectiveDelivering 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


PROCESSES RESULTS

PERFORMANCE EXCELLENCEROLE MODELS

What’s distinctive aboutthe 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

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Baldrige Performance Excellence Scoring System - Category Point Values

1 Leadership 1202 Strategy 853 Customers 854 Measurement, Analysis, &

Knowledge Management 905 Workforce 856 Operations 857 Results 450

Total points 1,000


Processes:550 points

HolisticThe “how” of

innovation processes

&“what” of innovation

results integrate

across all 7 categories.

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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

StrategicOpportunity Identification

Agile, Supportive

Environment

Intelligent Risk Pursuit

(Wisdom, Will)

I = IR + SE

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Steps toward Mature Processes


Reacting to Problems (0–25%)

1Early Systematic Approaches (30–45%)

2Aligned Approaches (50–65%)

3Integrated Approaches (70–100%)

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From Fighting Fires to Innovation: An Learning Analogy


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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?

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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?

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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?

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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

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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

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Malcolm Baldrige National Quality Award Winners – Health Care Sector

http://www.nist.gov/baldrige/

2014Hill Country Memorial (TX)St. David’s HealthCare (TX)

2013Sutter Davis Hospital (CA)

2012North MS Health Services (MS)

2011Henry Ford Health System (MI)Schneck Medical Center (IN)Southcentral Foundation (AK)

2010Advocate Good Samaritan Hospital (IL)

2009AtlantiCare (NJ)Mosaic Life Care (MO)

2008Poudre Valley Health System (CO)

2007Mercy Health System (WI) Sharp HealthCare (CA)

2006North MS Medical Center (MS)

2005Bronson Methodist Hospital (MI)

2004RW Johnson Univ. Hospital Hamilton (NJ)

2003Baptist Hospital, Inc. (FL)Saint Luke's Health System (MO)

2002SSM Health Care (MO)

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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

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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.


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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.


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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

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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

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more than health care … life care21

https://www.mymosaiclifecare.org/

22more than health care … life care


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Mark Erath, CPA, CGMA, FACHE, FHFMASenior Examiner, Baldrige Performance Excellence ProgramIndependent Performance Excellence [email protected]

Harry Hertz, PhD, FAAAS, HFACHEDirector Emeritus, Baldrige Performance Excellence ProgramNational Institute of Standards and [email protected]

Michael Pulido, SPHRChief Administrative OfficerMosaic Life Care – 2009 Malcolm Baldrige National Quality Award [email protected]

Interactive Discussion

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Resources:Mosaic Life Care


• 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


acha innovation & baldrige program panel slides final v1 (1)

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