Setting The BarCategory 2: Strategic Planning

Richard Heim

Vice President, Business Development

Leadership System

Understand

Stakeholder Requirements

1

Accountability

for Results

PatientCommunity

Suppliers

Partners

Physicians

Volunteers

Associates

Families

Mission

Values

Philosophy

Integrity

Passion

Caring

Organize,

Plan & Align

Perform to

Plan

Develop, Reward

& Recognize

Learn, Improve

& Innovate

Set Direction

Establish Goals

The number of times the Strategic

Planning Process (SPP) is referenced

in our application

How Important is the Strategic Plan

World-class Criteria

2.1: How does your organization conduct its strategic

planning? What are the KEY PROCESS steps?

What are your most important GOALS for your

STRATEGIC OBJECTIVES?

Managers had Multiple Goals & Initiatives

. .

Business Analysis

Review of

Organizational

Challenges &

Priorities

Environmental

Scan

SWOT

Analyses(SLine / Pillar / Org)

January - May1

2 3

Strategy Development

Establish

Annual Direction

By Pillar for

Leadership

Validate Vision, Core

Competencies, Success

Factors, Advantages,

Challenges &

Objectives

Perform

Analysis &

Budgeting

Process

June - September

4 5

6

Validate &

Finalize Goals &

Action Plans

Goal

Deployment(Communication)

Goal Alignment

& Development

Strategy Deployment

October - December7

89

Gap Planning

GSAM

SPP

Strategy Achievement & Improvement

Organizational

Pillar Review(Jan – Dec)

Evaluate &

Improve SPP(Jan – Dec)

10

11

PLAN

DO

STUDY

ACT

January - December

Business Analysis

Review of

Organizational

Challenges &

Priorities

Environmental

Scan

SWOT

Analyses(SLine / Pillar / Org)

January - May1

2 3

GSAM

SPP

Strategy Development

Establish

Annual Direction

By Pillar for

Leadership

Validate Vision, Core

Competencies, Success

Factors, Advantages,

Challenges &

Objectives

Perform

Analysis &

Budgeting

Process

June - September

45

6

GSAM

SPP

Validate &

Finalize Goals &

Action Plans

Goal

Deployment(Communication)

Goal Alignment

& Development

Strategy Deployment

October - December

7

89

GSAM

SPP

GSAM

SPP

Strategy Achievement & Improvement

Organizational

Pillar Review(Jan – Dec)

Evaluate &

Improve SPP(Jan – Dec)

10

11

PLAN

DO

STUDY

ACT

January - December

Business Analysis

Review of

Organizational

Challenges &

Priorities

Environmental

Scan

SWOT

Analyses(SLine / Pillar / Org)

January - May1

2 3

Strategy Development

Establish

Annual Direction

By Pillar for

Leadership

Validate Vision, Core

Competencies, Success

Factors, Advantages,

Challenges &

Objectives

Perform

Analysis &

Budgeting

Process

June - September

4 5

6

Validate &

Finalize Goals &

Action Plans

Goal

Deployment(Communication)

Goal Alignment

& Development

Strategy Deployment

October - December7

89

Gap Planning

GSAM

SPP

Strategy Achievement & Improvement

Organizational

Pillar Review(Jan – Dec)

Evaluate &

Improve SPP(Jan – Dec)

10

11

PLAN

DO

STUDY

ACT

January - December

Associate Engagement

Patient Satisfaction

Physician Engagement

GrowthFunding

Our Future

Health Outcomes

Key Strategic Objectives

•Sustain

Excellence

of Health

Outcomes

•Reduce

Preventable

Harm to

Patients

•Sustain Loyal

Associate

Relationships

•Sustain Loyal

Patient

Relationships

•Sustain Loyal

Physician

Relationships

•Grow

Service Area

Overall Net

Revenue

•Generate

Financial

Resources

to Fund

Our Future

World-class Criteria

2.2: How does your organization deploy your STRATEGY?

7.5 Core Measures

4.5 Falls with Injury

4.5 CPOE

4.5 Post OP DVT/PE

3.0 ICU Central Line

Infection

3.0 ICU Mortality

1.5 Acute Care Readmits

1.5 ED Sepsis Mortality

0.0 LOS

30% 5% 20% 10% 5% 30%

35%

Building Loyal Relationships

Organizational Alignment

5.0 Assoc Sat 5.0 Inpatient

5.0 Outpatient

5.0 ED

5.0 HCAHPS

10.0 Physician Sat 5.0 Net Revenue 15.0 Oper Margin

12.0 Expenses

3.0 Philanthropy

Associate Engagement

Patient Satisfaction

Physician Engagement

GrowthFunding

Our Future

Health Outcomes

Mission Critical: Goal AlignmentAdvocate Goals

/ Strategy GSAM ET Determines

Preliminary Goals & Targets

Goal Deployment

Worksheet Completed

Directors Provide Input into

Goals/Targets

Goals/Targets Finalized

Individual Goals Populated

Organizational and Department

Action Plans Created

Goals, Targets, Action Plans

Shared with Teams

GSam Strategy

Regulatory

Sample Deployment with Weights

Core

Measure

Bundles

Executive

Team

Weight

7.5%

(AMI/PN/CHF/SCIP)

PN

Bundle

Med/Surg Nursing

Director

Weight

10.0%

(8 CMS Measures)

Pneumoccocal

Vaccination

Nurse Manager

Weight

15.0%

(1 Measure)

Integration Using Automation

Advocate Management

System (AMS)

• Profiles

• Annual Goals, Weights & Results

• Quarterly Action Plans

• Annual performance evaluation

– GSAM beta tested

– Goals are Objective

& Measureable

– Intranet based for all

85 Leaders

– Evaluation and

Management System

Recently added:

2010 Baldrige

Recipient

Deployment Organization-wide

Hospital Goals

& Results

Dept Goals &

Results

Information

Sharing

Department Pillar Boards

Cycles of Improvement

Strategic Planning Process– Capital Process changes

– Environmental Scan enhancements

– Physician involvement increased (Service Lines & leadership)

Strategy Deployment – Hold all leaders to the level of goal achievement

– Systematic communication

– Use Results (data) to determine goals & weights

– Deploy to front-line staff

How do we

measure

and know

the strategic

plan is

effective

Organizational Report Card December 2010

Weighting Goal (Stretch) Result Score Item Score

7.5% Core Measure Bundles 97 5.00 0.375

4.5% CPOE 113,146 4.797 0.216

4.5% AHRQ - Post Op DVT/PE 11.8 1.00 0.045

4.5% NDNQI - Falls With Injury 0.32 2.72 0.122

3% ICU Central Line Infection 0.70 3.25 0.098

3% ICU Mortality Index 0.69 4.636 0.139

1.5% Acute Care Readmission 11.1 1.333 0.02

1.5% ED Sepsis Mortality Index 0.99 2.05 0.031

0% LOS Index 0.83 5.00

5% Associate Satisfaction 97th 5.00 0.25

15% IP, OP, & ED Satisfaction 85th 5.00 0.75

5% H C A H P S: Rate Hosp 1-10 66th 2.20 0.11

10% Physician Satisfaction 97th 5.00 0.50

5% Service Area Net Revenue

Growth4.84% 2.62 0.131

15% Service Area Operating Margin 6.73% 5.00 0.75

12% Expenses 95.34% of Net

Revenues

93.27% 5.00 0.60

3% Philanthropic Giving $1,924,000 5.00 0.15

4.287

GROWTH

FUNDING OUR FUTURE

Overall Performance Score (on a 5-point scale):

HEALTH OUTCOMES

ASSOCIATE ENGAGEMENT

PATIENT SATISFACTION

PHYSICIAN ENGAGEMENT

John Kotter

Leaders establish the vision for the

future and set the strategy for getting

there; they cause change. They

motivate and inspire others to go in the

right direction and they, along with

everyone else, sacrifice to get there.

Thank You

Questions

Panelists:

Marjorie Maurer, Chief Nurse Executive

Peter Bury, Vice President of Finance

Sandra Norton, Vice President of Human Resources

Chuck Derus, M.D., Vice President of Medical Management

Paula Timmerman, Director of Oncology & Post Surgical Nursing

2011- 2015 Strategic Plan Summary

Vision

To provide an exceptional patient experience

marked by superior health outcomes,

service and value

Core Competency

Building Loyal Relationships

Long Term

Strategic

FrameworkOperational Excellence Strategic Agility

Short Term

Operating

Framework

(Pillars)

Health

Outcomes

Associate

Engagement

Patient

Satisfaction

Funding our

Future

Physician

EngagementGrowth

Key

Success

Factors

Excellent Care

With Consistently

Superior Health

Outcomes

An Environment

Where All Associates

& Volunteers Feel

Valued

Exceptional Service

to Patients &

Families

Superior Value to

Generate

Resources in

Service of Our

Mission

A Hospital Where

MDs Feel Valued

& Their Patients

Receive

Exceptional Care

Develop and Grow

Needed Services for

Our Communities

Strategic

Advantages

Loyal Relationships with customers & stakeholders

Effective Senior Leadership (Early adopters / superior execution / creation of culture)

Superior Outcomes in all Key Result Areas (KRAs)

Nationally Recognized PHO & Clinical Integration Program

Outstanding Reputation within the Market

Strategic

Challenges

Sustainability of Financial & Operational Excellence with a Changing Economic Model

Growing Need to Better Manage the Patient Population Across the Continuum of Care

Breakdown of the Physician Business Model

High Level Key Strategic Objectives 2011-2015

1. Advance Operational Excellence to Maintain Our Competitive Advantage

2. Expand the G2G Culture to Reduce Waste and Increase Value

3. Develop Partnerships with Pre and Post-Hospital Providers to Improve Outcomes

4. Strengthen Hospital and Physician Alignment & Integration