the roi of kainexus and the workout methodology
TRANSCRIPT
A System-Wide Approach to
Driving Process Improvement
Mark Graban KaiNexus
@MarkGraban
Jason Coons Kettering Health Network
@coonsja81
(Skip to slide #27 to watch this webinar)
• 10+ years in healthcare, medical device, and consulting industry
• Education – Industrial Engineering, Health Administration
• Various certifications – Lean, 6 Sigma, PMP, ITIL
• Joined Kettering Health Network in 2010
About Jason Swartz (Skip to slide #27 to watch this webinar)
Kettering Health Network A System-wide Approach to Process
Improvement
(Skip to slide #27 to watch this webinar)
Today’s Goals
• See how Kettering's system-wide approach to projects, training, and daily problem solving led to $2.6 million of financial impact last year
• Learn about KaiNexus, the continuous improvement software platform that spread continuous improvement by enabling change management and accountability within the system
• Get actionable advice from lessons learned in Kettering Health Network's 5 year process improvement journey
(Watch this webinar)
Our Journey
2010
2012
2013
2014 To the future…
Expand resources to meet increased demand / support
A team of one… Supporting two hospitals (KMC/SMC)
Expand to support all Network facilities
Integration of analytics and
strategy deployment
Year-long process to hire team completed
Partnership with KaiNexus
KMC/SMC achieves great financial and operational success
(Watch this webinar)
Support All of KHN?!?
• Network awareness
• No central or standard structure to track and trend areas of opportunity
• No sustainable method to engage and empower front-line staff
• Ability to find and hire talented people
• Network data management and governance
• No standard model to track actions required for follow through (accountability)
(Watch this webinar)
Overcoming Our Challenges
• Leadership training and awareness
• KaiNexus as a platform, not just technology
– Creating improved awareness and heightened accountability
– Standardized structure for tracking improvement within projects
• Ability to move beyond the “project”
• Rigorous 6 step interview process
• Integration of Process Excellence and Business Intelligence
(Watch this webinar)
A System-wide Approach
Training / Development
Building internal capabilities to identify and eliminate waste.
Key Services
• Novice Training
• Advanced Training
• CPEL program
• Coaching / Mentoring
Process Improvement
Identification, resolution, and
sustainment of OFIs across direct and
indirect patient care
Key Services
• Lean improvement
• Data Analysis
• Operational Assessments
• Simulation
• Facility redesign
Change
Implementation
Management oversight required to successfully
deliver or create a unique, product, service, or result.
Key Services
• Project Management Services
• Strategy deployment/oversight
(Watch this webinar)
Developing Our People
Understand the foundation of Lean methodology and key tools to improvement
Awareness of Lean Management Model and definitions
Change Management / Culture shift
Novice Training Advanced Training CPEL Program
Deeper understanding of Lean methodology and problem solving techniques
Lean Management Model review
Understand key attributes of a Lean leader
A3 Problem Solving
Understand all aspects of Lean management system
The ability to instill lean thinking into their area
The ability to facilitate rapid improvement events and process improvement tools
Ongoing CI expectations
(Watch this webinar)
CPEL Projects (Sample)
• 100% reduction in Flash sterilization rates @ Soin OR
• 50% reduction in pre-admission testing time @ GV
• Improved pain management PG score from 42% to 89% @ Soin
• Abstraction training improvements result in 50% decrease in hardware and zero build issues @ IS/KPN
• ED Navigator resulted in 25% increase in e-visits, 44% increase in follow up charges, 15% increase e-visit charges @ FHH
(Watch this webinar)
Staff Trained
0
100
200
300
400
500
600
700
800
900
1000
2011 2012 2013 2014 2015
Formal and Project Training
Training Projects
Nearly 2,500 leaders and staff trained
(Watch this webinar)
Project Governance
Strategic Alignment • Utilize multi-
factor strategic alignment scoring model
Organizational Need • Alignment to
OneBest • Evaluation of
tactical need • Campus level
needs
Change Readiness • Assessment of
organization cultural and overall readiness
Project Business Case
(Watch this webinar)
Standard Project Approach
Business Case Development:
Business Relationship Manager and/or assigned Project
Manager works with requestor and
stakeholders to develop or validate
business case (problem statement,
metrics, etc.)
Sponsor Approval: The project sponsor
signs off on the project business case,
indicating it’s an initiative that should
be facilitated by a Project Manager.
Project Research: Project will be
researched based upon project type
Project Charter: A draft project charter
will be developed, which is a preliminary high-level outline of
the project that helps define scope and financial impact.
Project Selection The project will be evaluated against
project portfolio by appropriate approving body. This determines prioritization against
other initiatives.
Build Project Plan: A detailed project plan
will be developed, which includes:
Project Plan Approval:The executive
summary will be presented to the
appropriate operational approving body at which point
funding will be released for projects
that require capital or operating
expenditures.
Execute Project Plan:Once approved, the
project will be worked on by the Project
Manager and/or teams assigned, based on the timeline as outlined in
the project plan.
Transitioning Out: Project Manager will meet with Sponsor to review all necessary
critical hand off items.
Deliverables Accepted:
Upon completion of project
implementation, final deliverables will be
reviewed and approved by Sponsor
and operational approving body.
Initiation Planning Execution Closing
Build Executive Summary:
Project Manager develops an executive
summary of the project plan
Project Closing: Project Manager will
conduct final review of project with sponsor,
key stakeholders, and/or operational
approving body for final acceptance.
Charter Sign off: The project sponsor must sign off on the
project charter to move forward.
Risk RegisterProject ScheduleCommunication PlanResource PlanBudget
Project Approvals: All approvals are iterative and will continue until approval
or project cancellation.
(Watch this webinar)
PROCESS EXCELLENCE
Aligning Analytics to Drive Action
STRATEGY
BI GOVERNANCE DATA DELIVERY
BUSINESS INTELLIGENCE
(Watch this webinar)
CONFIDENTIAL DATA, NOT SHARED
Another Story…
• Length of Stay Initiative
– #1 Initiative across KHN
– Affects 7 facilities & 50+ units
(Watch this webinar)
Our Impact
$636,563
$2,054,498
$2,360,423
$4,058,034
$4,854,084
0.00
1.00
2.00
3.00
4.00
5.00
6.00
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2011 2012 2013 2014 2015
True Financial Impact & ROI
Cumlative $ Impact Annual Impact
*Financial impact validated and annualized one year. Does not account for cumulative impact.
(Watch this webinar)
Lessons Learned: Starting the Journey
• Organizational alignment
– Strategy linkage
– Relationships / Partnerships
• Agreed upon metrics of success and “runway length”
• Governance of project selection
• Organizational data management
(Watch this webinar)
Lessons Learned: Starting the Journey
• Key project roles defined
• Process improvement approach
• Training model developed
• Hire the right people
(Watch this webinar)
Lessons Learned: For Lasting Success
• Integral part of strategic direction and future
• Resources match commitment and demand
• Clear understanding of data and goals (data infa-structure)
• Viewed as a management philosophy
(Watch this webinar)
Lessons Learned: For Lasting Success
• President driven
• Everyone expected to participate
• Patient Centric
• Focus on the right things, ROI will follow
• Use of technology to better enable improvement
(Watch this webinar)
Thanks!
Mark Graban KaiNexus
@MarkGraban
Joe Swartz Franciscan St. Francis
@JoeKaizeneer
• Web:
– www.kainexus.com
– blog.kainexus.com
• Past Webinars:
– www.kainexus.com/webinars
• Social media:
– www.twitter.com/kainexus
– www.linkedin.com/company/kainexus
– www.facebook.com/kainexus
To learn using a system-wide approach
to drive process improvement, watch
the full webinar:
Watch Now
A System-Wide Approach to Driving Process Improvement
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