Culture Change. 5 Big Mistakes Healthcare Organizations Make

Transcription

1 Culture Change 5 Big Mistakes Healthcare Organizations Make

2 Agenda 1. Trends in Healthcare 2. The 5 Big Mistakes We Make 3. Components of Culture Change 4. Quiz Results

3 Who We Are: Lynn Godat Corporate Experience Five years in OD with Sprint Three years in OD with Cigna Healthcare Ten years with international consulting firm One and half years with Catholic Healthcare West/Dignity Health Specialty Areas Culture Change Leadership Development Talent Management Organizational and Individual Assessment

4 Who We Are: Angie Smith Field & Corporate Experience Nine years Hilton Hotels Corporation Four years Consulting Five years with Nestle USA Seven years with Catholic Healthcare West/Dignity Health Specialty Areas Change Leadership Organizational & Executive Development Talent Management

5 Hospitals & Care Systems of the Future Hospitals and Health systems in the United States are facing an unparalleled force to change. Industry experts have projected that multiple, intersecting pressures will drive the transformation of healthcare delivery. American Hospital Association 2011

6 Times are a changin

7 Culture Change Quiz

8 Healthcare Trends 1. Hospital CEOs will focus on cost-cutting, volume and hospital-physician alignment. 2. The stagnant economy and high unemployment rate will restrict growth but not costs. 3. New care models and health IT will demand attention and capital.

9 Healthcare Trends Continued 4. Access to capital will be paramount. 5. Weak hospitals/medical groups will merge or fold. 6. C-suites will experience high turnover. *Camden Group - Jan 2012 Healthcare Predictions

10 Five Big Mistakes 1. Not focusing on the customer 2. Not providing adequate funding for culture change 3. Not performing workforce planning 4. Giving HR responsibility without authority 5. Not developing and following a plan 6. Not aligning mission, vision & values 7. Giving employees too much information 8. Changing the strategy too frequently 9. The mindset it doesn t apply to us 10. Not creating a sense of urgency

11 Five Big Mistakes #1 Thinking That Healthcare is Unique #2 Not Performing Workforce Planning #3 Not Communicating the Urgency of Change #4 Running Amuck-Not Having a Plan #5 Not Recognizing Who the Customer Is

12 #1. Thinking That Healthcare is Unique

13 Healthcare Is Like Every Other Organization In many ways, we re no different than Corporate America & Fortune 500 companies Healthcare is struggling to sustain, grow, capture market share, and cut costs Strategic imperatives drive our focus -our identity and how services are delivered

14 How We Got It Wrong Thinking Healthcare & non-profits are different Thinking that we could skip OVERCOMMUNICATING & LESSONS LEARNED

15 How We Got It Wrong Continued Not considering an individual s motivation when selling a change Failing to link financials & metrics to the patient and improved patient care

16 What We Are Doing Now Made financials and current-state challenges real & relevant to employees

17 Healthcare 2012

18 #2. Not Performing Workforce Planning

19 How We Got It Wrong Hoped that the current talent was the right talent for future

20 Saratoga WFI Maturity Curve

21 Costs of a Bad Hire The Harvard Business Review points out as much as 80% of employee turnover is due to bad hiring decisions Some estimates suggest costs associated with TO & poor performance are 1-2 times annual salary

22 What We Are Doing Now Aligning Talent with Strategy: 1. Using workforce intelligence to drive decisions 2. Hiring for future environment - Job analysis 3. Developing incumbent competencies - Strategic Partnering

23 #3. Not Communicating Urgency

24 The Story Behind the Burning Platform 1988-disastrous explosion on oil platform 168 deaths-63 survivors Andy Mochan jumped 150 ft into freezing water filled with burning oil &debris Asked why? It was jump or fry

25 How We Got It Wrong Not emphasizing changing landscape Not giving all the facts Not involving staff in creating vision

26 The Reality We are creatures of habit

27 Establishing Need for Change Does the Vision grab people? Why are we doing this? WIIFM? How will it impact me? Does the need exceed resistance?

28 What We Are Doing Now Communicating the reality behind change Sharing clear, compelling vision & sharing Our Vision: To be a vibrant, national health care system known for service, chosen for clinical excellence, standing in partnership with patients, employees and physicians to improve the health of all communities served.

29 #4. Running Amuck

30 Why Failure Happens 2/3 of change initiatives fail due to lack of attention to cultural components

31 How We Got It Wrong Not using a systematic approach that addresses the people side of change

32 Biggest Obstacles to Success 1. Poor Sponsorship 2. Resistance change is personal 3. Poor Support and alignment with middle management 4. Lack of change management resources and planning Prosci Best Practices in Change Management

33 What We Are Doing Now Using GE Change Acceleration Process

34 If You Don t Know Where You re Going More than any other type of change, culture change requires planning and a commitment to creating the environment of the intended culture -Richard Beckhard, the founder of Organizational Development

35 The Long-Term Strategy

36 #5. Not Recognizing Who the Customer Is CEO Carl the CEO Pearl the Patient Dan the Doctor

37 How We Got It Wrong That depended who you were talking to: Sometimes the customer was Corporate Sometimes the customer was the patient Sometimes the customer was CMS Sometimes the customer was the doctor Sometimes the customer was the CEO

38 Are You Customer Focused? Customer survey Employee survey Strategy Mission, Vision, Values

39 What We Are Doing Now Implemented Patient and Family Centered Care to assure the focus on our vision & mission: the Patient and Family Emphasized that the role of the physician, the nurse, and support staff exists to attain the goal of PFCC Again, we reinforced the PFCC focus through a systematic change-management plan

40 Planning Culture Change

41 What Are the Critical Components of a 1. Planning Culture Change Plan? 2. Implementation 3. Monitoring 4. Adjusting

42 Planning Most of the work done here Compelling Vision and clear Strategy important Use project planning tool

43 Planning

44 Implementation Identify & implement short term wins Engage & empower employees Communicate, motivate & acknowledge Follow the plan

45 Monitoring Check on milestones and timelines Hold people accountable Don t be afraid of the plan

46 Adjusting Keep the end in mind Sometimes you need to change a few things

47 Linking Metrics and Evaluating the Change Against 5 Mistakes 1. Thinking That You Are Unique- EAS & the Implementing the Plan 2. The Right Workforce- EAS & Turnover 3. Establishing Urgency- EAS & Speed to Adoption 4. Running Amuck- EAS & Strategic Change Management 5. Customer Focus- EAS & HCAHPS & Physician Satisfaction Survey

48 Creating a Culture Change Strategy Critical Steps The change must be aligned with the Strategy Start with the end in mind and work backwards Identify quick hits and low-hanging fruit Overkill on communication Identify simple metrics and track progress

49 What s Your plan? Specific Measurable Actionable Realistic Time bound

50 What Do You Know About Culture Change? 1. Which of the following best describes organizational culture? A. Geographic location of the workplace B. The collective behaviors of individuals within an organization C. Organizational procedures, manuals and dress codes D. Executive directives on how things should get done

51 What Do You Know About Culture Change? 2. Which of the following has the most significant influence on the formation of an organization s culture? A. Union representatives and bargaining agreements B. HR policies and procedures C. The organization s approach towards total rewards D. The industry, environment and leaders of the organization

52 What Do You Know About Culture Change? 3. Which of the following best describes why it is so difficult to change organizational culture? A. People are likely to keep their belief system even if data contradicts it B. Senior management will not support changes when a company is performing successfully C. It is costly to update all the policies and procedures D. Supervisors lack good communication skills

53 What Do You Know About Culture Change? 4. Which of the following must be done when defining the desired culture? A. Describe specifics of future state B. Take a cultural walk C. Review exit interview data D. Rely solely on senior management for direction

54 What Do You Know About Culture Change? 5. What is the desired outcome of a gap analysis? A. A strategy for communicating the changes B. A detailed picture of the current situation C. A realistic picture of where the organization wants to go D. A plan that leverages things that are working well and addresses issues that need to be changed

55 What Do You Know About Culture Change? 6. Why is it important to create a sense of urgency when planning for change? A. It catches the attention of stakeholders when it s shown how change will result in either avoiding a great loss or adding great value. B. It helps identify key stakeholders more quickly and effectively. C. It allows for change agents to pilot programs early on. D. It results in a business case that will be approved and supported by all.

56 Your Input Questions? Comments?

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