John F. Talbot, PhD Executive Vice President and Senior Associate, OPEN MINDS Pre-Institute Seminar sponsored by Credible Behavioral Healthcare

Similar documents
Performance Data, Dashboards, & Metrics-Based Management

Rejean Carlson, President, OPEN MINDS 2012 OPEN MINDS Best Management Practices Institute February16, 2012 / 11:00am

Estimating & Achieving a Positive ROI from EHR Adoption: The OPEN MINDS EHR ROI Model

msd medical stores department Operations and Sales Planning (O&SP) Process Document

Denials Management: Key Assessment Steps to Prevent and Recover Repetitive Revenue Leakage

Moving Forward: Ten Keys to Profitability

ElegantJ BI. White Paper. Key Performance Indicators (KPI) A Critical Component of Enterprise Business Intelligence (BI)

Best practices for planning and budgeting. A white paper prepared by Prophix

Client Onboarding Process Reengineering: Performance Management of Client Onboarding Programs

Key performance indicators

Revenue Cycle Management

Final. North Carolina Procurement Transformation. Governance Model March 11, 2011

Best Practices for Planning and Budgeting. A white paper prepared by PROPHIX Software October 2006

PRODUCT OVERVIEW. Sunrise Revenue Cycle. It s all about Outcomes

NICE BACK OFFICE SOLUTIONS. Improve the Efficiency and Effectiveness of Your Back Office Operations. Insight from Interactions

A proven 5-step framework for managing supplier performance

Performance Management. Date: November 2012

Develop Project Charter. Develop Project Management Plan

Scioto Paint Valley Mental Health Center. Quality. Assurance Plan

MEDICAL MANAGEMENT PROGRAM LAKELAND REGIONAL MEDICAL CENTER

Designing a Metrics Dashboard for the Sales Organization By Mike Rose, Management Consultant.

trilyst TM Presents Valeh Nazemoff

Exempt Performance Reviews. Date Approved: June 23, 2008 Last Edited: June 3, 2014

Measuring your most important Asset: Human Capital

Revenue Cycle Assessment

How To Use Business Intelligence (Bi)

Better Analysis of Revenue Cycle and Value-Based Purchasing Data Improves Bottom Line

2012 National BDPA Technology Conference. Defining Project and PMO Metrics

Selecting. CRM: Selecting, Customizing, and Utilizing for Effectiveness. Traversing Your Course. It s About the Indicators. Key Performance Indicators

WHITE PAPER From BetaSphere. The Five Secrets Of A Successful Launch

ICD-10 Remediation: Post Go-Live Activities

How Do I Choose my KPIs?

POLAR IT SERVICES. Business Intelligence Project Methodology

How To Use Therapysource

Measurement Information Model

Business Intelligence Analyst Position Description

Dashboard Reporting Business Intelligence

Practice profitability

BENCHMARKING IN HUMAN RESOURCES

Revenue Cycle Questions to Ask Yourself

Selecting The Right EHR Partner: An EHR Return-On- Investment Analysis

CA Service Desk Manager

Buy versus Build Considerations for Clients Purchasing CLO Dashboard

Among the many challenges facing health care

Populating a Data Quality Scorecard with Relevant Metrics WHITE PAPER

Welcome Strategy Leader!

An Example of Using Key Performance Indicators for Software Development Process Efficiency Evaluation

Joseph Naughton-Travers, Ed.M., Senior Associate, OPEN MINDS The 2014 OPEN MINDS Planning & Innovation Institute June 3, :45am 11:00am

Why Your CRM Process is Destroying Your Team s Prospecting and How to Fix It

Beyond the Basics: Accelerating the Revenue Cycle Through Advanced KPI s

Understanding Revenue Cycle Strategy How to Optimize Process and Performance

PROJECT COST MANAGEMENT

Payment Reform -- do you have the tools to be successful?

Tim Snyder, Vice President Of Marketing, OPEN MINDS Eron Cohen, Internet Marketer, Fuuzio Internet Marketing OPEN MINDS Planning & Innovation

QUALITY AND PERFORMANCE IN PROJECTS. Project Management and Leadership 2015D, PhD, PMP

The Landscape of Health Information Management

Executive Summary...2. Introduction...3. Definitions...3. Why Operational Performance Optimization...4

Performance-based Incentive Compensation Plan

How to Improve the Impact of L&D Function on Business Outcomes

a Foundation for Change

Effective Workforce Development Starts with a Talent Audit

Guide for the Development of Results-based Management and Accountability Frameworks

Office of Inspector General Evaluation of the Consumer Financial Protection Bureau s Consumer Response Unit

Using dashboard reports. Selecting KPIs

How Technology Helps Win and Manage Grants. Table of Contents

STAYING AHEAD OF THE CURVE WITH AGILE FINANCIAL PLANNING, BUDGETING, AND FORECASTING

Best Practices In Vendor Selection & Contracting

How to Lead a CRM Planning Workshop

Physician Enterprise The Importance of Charge Capture, Business Intelligence and Being a Data Driven Organization

The Power of Business Intelligence in the Revenue Cycle

5 PLACES IN YOUR HOSPITAL WHERE ENTERPRISE CONTENT MANAGEMENT CAN HELP

CDC UNIFIED PROCESS PRACTICES GUIDE

DISCHARGE FOCUS PUTS HOSPITAL CAPACITY ISSUE TO BED By Terry Maher, Healthcare Practice Leader, USC Consulting Group

Best Practice exensys Vendor Performance Management

GE Capital Measuring success: Creating metrics that deliver the information you need

Making sales sizzle for success

PREDICTIVE ANALYTICS FOR THE HEALTHCARE INDUSTRY

Center for Business and Industrial Marketing

Keynote: How to Implement Corporate Performance Management (CPM), Pervasive BI & ROI: Hard & Soft

Process Intelligence: An Exciting New Frontier for Business Intelligence

Maximizing Customer Retention: A Blueprint for Successful Contact Centers

EFFECTIVE ROOT CAUSE ANALYSIS AND CORRECTIVE ACTION PROCESS

MANUSCRIPT THE DETROIT WATER AND SEWERAGE DEPARTMENT S PERFORMANCE AND DASHBOARD SYSTEM (PADS): STRATEGIES, ACTIONS, AND MEASURES FOR OPTIMAL RESULTS

Copyright 2015 Human Capital Institute. All rights reserved.

Provider Revenue Cycle Management (RCM) and Proposed Solutions

Data Governance A Big Step for your Big Data Initiatives

Oracle ERP Support Benchmark Findings

WHITEPAPER: Why Your EMR Alone Won t Drive Value-Based Care

SAP BUSINESSOBJECTS SUPPLY CHAIN PERFORMANCE MANAGEMENT IMPROVING SUPPLY CHAIN EFFECTIVENESS

Patient Relationship Management

Achieving Business Analysis Excellence

Annex 5 Performance management framework

The Evolution of Quality Monitoring. How Technology Can Enhance the Effectiveness of Quality Monitoring Programs

The Search for a Holy Grail: Best Practices for Defining KPIs

Capacity Management: Patient Throughput and Case Management Improvement. February 25, 2015

DEPARTMENT OF LOCAL GOVERNMENT AND COMMUNITY SERVICES. Performance Indicators Information Paper

Data Driven Audiology Practice Management

Key Findings 3. The Workforce Management Technology Maturity Model 4. Present Challenges 6. Workforce Automation 8

Dashboard solutions Executive brief April Capitalize on the value of active dashboards to improve business flexibility and decision making.

Considered at its broadest level, a collaborative process consists of five sequential pieces:

Transcription:

John F. Talbot, PhD Executive Vice President and Senior Associate, OPEN MINDS Pre-Institute Seminar sponsored by Credible Behavioral Healthcare Software October 16, 2012 1:30pm

I. Creating A Culture Of Organizational Measurement II. The Four Cornerstones Of Metrics-based Management III. Management Dashboards And Alerts 2

I. Creating A Culture Of Organizational Measurement 3

Whatever gets measured Gets attention Gets done If you don t measure it, you can t manage it Essential in a turbulent environment 4

Metrics-based management is a performance management system that relies on three components, each of which must be quantitatively and qualitatively expressed. Current state: baseline measures of your organization s current performance Desired state: where your organization wants to be regarding key priorities Bridging the gaps: a definitive plan for how you'll move your organization to achieve the desired performance 5

Opinions Decisions Decisions Opinions 6

Data Decisions Analysis 7

Stage 1: Data Collection Identifying the Key Performance Indicators for the organization as a whole and for each department. Determining what data needs to be captured and setting up the data reporting procedures Stage 2: Data Analysis Process of analyzing the data to ensure that the organization is meeting performance targets Using data analysis for continuous improvement Stage 3: Benchmarking Using appropriate benchmarks from customer/marker/regulatory expectations Benchmarking best-in-class across industries Benchmarking industry peers as appropriate Stage 4: Decision Making & Process Improvement Take decisions based on data collected to alter your processes and also look at improvements in data being collected and ensuring quality of data.. Stage 5: Follow-Up & Continuous Improvement Follow up on the decisions taken for process improvement and measure effectiveness of the decisions after new numbers are available. Do this repetitively. 8

Measure the metric Launch the improvement Learning about markets, customers, competitors, and processes Analyze the metrics Design and develop improvement Identify improvement opportunities 9

Cultural shift toward accountability for performance metrics executive team, program managers, and supervisors Role of the manager is to ensure the targets are met planning, human capital, processes, policies, etc. Metrics at all levels are used to for performance measurement 10

II. The Four Cornerstones Of Metrics-Based Management 11

12

Routine Operational & Management Reports Key Performance Indicators Benchmarking & Performance Targets Management Dashboards & Alerts 13

14

Start your metrics management approach by ensuring that staff have access to data via routine reporting to manage day-to-day operations and supervise staff. 15

These ensure that all staff has access to the accurate, up-to-date information that they need to do their jobs on a daily basis. With roughly ninety percent of the reporting needs for organizations being planned and predictable, this simply means producing and using meaningful reports from the management information system and making certain that staff know how to use them. 16

1. Caseload report 9. No-show and cancellation report 2. Staff productivity report 10. Discharge report 3. Care access measures reports 11. Consumer demographics reports 4. Waiting list 12. Mandated treatment monitoring reports 5. Closed case notification 13. Medication profile and report 6. Care provider and program admissions report by client 14. Daily census 7. External referral report 15. Tickler report 8. Internal referral report 16. Crisis call tracking 17

18

Internal reports are reports identified for use by the agency staff to manage operations. External reports are those required periodically by outside parties (such as state agencies). Additionally, reports are given a preliminary priority level by the management team. The priority levels are as follows: Priority 1 An essential report that must be operational on the day the organization begins to use its new software application Priority 2 A non-essential report, but highly desired as soon as possible after the new software implementation Priority 3 A non-essential report, but anticipated as part of a longer term expansion of management reporting and enhanced operations 19

20

21

Key Performance Indicators (KPIs) Are financial and nonfinancial measures used by management team to ensure that organization is on track with strategic objectives KPIs represent those data points that measure the health of your organization KPIs are typically tied to an organization's strategy using concepts or techniques such as the Balanced Scorecard Ideal Performance Indicators A ideal KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target, and time frame. For example: "Increase average revenue per customer from $30 to $50 by 2008." In this case, 'Average revenue per customer' is the KPI. 22

A KPI should follow the SMART criteria. S The measure has a Specific purpose for the business. M It is Measurable to really get a value of the KPI. A The defined norms have to be Achievable. R The KPI has to be Relevant to measure (and thereby to manage). T It must be Time-Phased, which means the value or outcomes are shown for a predefined and relevant period. 23

Coincident indicator Leading indicator Lagging indicator 24

Provide a quantifiable measure to monitor strategic objectives Focus attention the attention of staff on performance required for success Allow measurement of accomplishments, not just of the work that is performed Provide a common language for communication Are explicitly defined in terms of owner, unit of measure, collection frequency, data quality, expected value (targets), and thresholds Increases accountability Are valid, to ensure measurement of the right things Are verifiable, to ensure data collection accuracy 25

Monitor representative metrics of organization s performance To stretch to better performance! Proactively address problems ( leading indicator concept) Use as guide to selecting issues for further exploration 26

Overall Organizational Level Strategic Objectives Department/Program Level Finance IT HR Programs/Clinical 27

Organization Strategic Plan & Objectives Organization-Wide Performance Indicators Operating Unit Plan & Objectives Operating Unit Performance Indicators Program Plan & Objectives Program-Specific Performance Indicators Individual Staff Performance Objectives 28

Revenue (overall and by service line) Expenses (overall and by service line) Profit/loss (overall and by service line) Unit cost by service by site Cash reserves Accounts receivable Number/$ amount of denied claims, by payer 29

Number of referrals by referral category Conversion rate for referrals Number of complaints 30

Human Resources Number of new hires Number of terminations Rolling turnover rate (3- month) by site 31

Clinical Quality of care measures Client satisfaction Sentinel events Adherence to documentation and other compliance requirements Percent of staff who met clinical productivity requirements by site No-show rate for MDs Readmissions to hospital 32

Number of new programs implemented Internal process innovations resulting in better service to customers and/or greater efficiencies 33

34

The third cornerstone is using benchmarks and performance targets to challenge and drive continuous improvement in service quality and operations. 35

Establish your KPIs Continued measurement Conduct research to find appropriate benchmarks Modify your KPIs as needed Incremental versus stretch targets Compare your KPIs with benchmarks Analyze gaps 36

Best in class within behavioral health Best in class in healthcare Best in class in other industries Beware the benchmarking mediocrity trap!! 37

38

III. Management Dashboards & Alerts 39

The last phase in implementing metrics-based management is to make certain that your managers and staff cannot miss key performance information by using some form of a management dashboard. Typically, management dashboards or alerts include discrete performance metrics that measure critical operational components of your organization. Warn you about problems before it is too late! 40

A computer interface that organizes key performance indicators in an easy to read format, displaying the information that executives need to run an organization. 41

Step One: Determine what dashboards are needed, and who will receive them, and at what frequency Step Two: Design the prototype dashboards Step Three: Test drive the dashboards and train staff how to use them Step Four: Use the dashboards! 42

Organization Strategic Plan & Objectives Organization-Wide Performance Indicators Operating Unit Plan & Objectives Operating Unit Performance Indicators Program Plan & Objectives Program-Specific Performance Indicators Individual Staff Performance Objectives 43

Dashboard Contents Audience Frequency Organizational Strategic Plan Objectives KPIs for each strategic objective Executive team, Board of Directors Minimum: monthly Organizational Operations Measures Critical organization operational KPIs (usually selected department/program measures Executive team, Department program directors Minimum: monthly (some could be weekly / daily: P4P contract indicators, cash flow) Department Program Measures Department / program KPIs Department / program directors Minimum: monthly (some could be weekly / daily: P4P contract indicators, cash flow) 44

For Financial Managers For Clinical Managers Revenue (overall, and by program) Key compliance requirements, especially documentation Margin (overall, and by program) Unit cost by program/productivity Cash flow No-show rate Days in A/R Sentinel events Billings Rejected (by dollars or %) Billings Rejected (by dollars or %) Any financial P4P measures Any clinical P4P measures Outcome/quality measures 45

An intuitive graphical display that is thoughtfully laid-out and easy to navigate A logical structure that makes information easily accessible Little or no user training is required Data displays that can be customized and categorized to meet the specific needs of each user. Regular and frequent updates of dashboard information for accuracy and relevance to current conditions Information from multiple sources, departments, or markets can be viewed simultaneously 46

47

48

49

50

51

52

53

54

Root cause analysis (RCA) A process designed for use in investigating and categorizing the root causes of events with negative safety, quality, reliability and operational impacts. Simply stated, RCA is a tool designed to help identify not only what and how an event occurred, but also why it happened. You can only correct the problem when you are able to determine why the problem occurred. 55

Root causes are specific underlying causes Root causes are those that can reasonably be identified Root causes are those management has control to fix Root causes are those for which effective recommendations for preventing recurrences can be generated The more specific the team can be about why an event occurred, the easier it will be to arrive at recommendations that will prevent recurrence Pareto principle: roughly 80% of the effects come from 20% of the causes The entire healthcare system is in chaos is not a root cause Recommendations should directly address the root causes identified during the investigation If the team arrives at vague recommendations such as, Improve adherence to written policies and procedures, then they probably have not found a basic and specific enough cause and need to expend more effort in the analysis process 56

Define the problem Implement and monitor the recommendation Data collection Development of recommended solution Causal factor charting Root cause identification 57

The problem must be clearly operationally defined Rather than: Our documentation is terrible Instead: 80% of the treatment plans in the children s outpatient clinic were not completed within the required timeframe of 72 hours after intake 58

Without complete information and an understanding of the problem, the causal factors and root causes associated with the event cannot be identified. The majority of time spent analyzing an event is spent in gathering data. For our problem with treatment plans not being completed on time, data that could be gathered includes: Completion rate by team, therapist Data about what elements of the plan are not completed on time Other? 59

Causal factor charting Provides a structure for investigators to organize and analyze the information gathered during the investigation and identify gaps and deficiencies in needed data as the analysis progresses A sequence diagram with logic tests that describes the steps in a process Begin with a skeleton flow chart that is modified as more relevant facts are uncovered Data collection continues until the team is satisfied with the thoroughness of the chart Allows the team to identify causal factors Those contributors (human errors and system problems 85% of problems are system problems 60

Start Consumer Arrives For Appointment Payment Collected & Receipt Given Therapist Sees Consumer Data Entered Charge Tickets Complete? Charge Tickets Turned In Weekly Charge Ticket Completed End Returned To Therapist Chart Ticket Corrected 61

Track the effectiveness of the solution through the KPIs 62

Identify solution(s) based on the results of the analysis that will address control root cause(s) of the problem 63

From Electronic File Cabinet To: Development of organizational strategy using data to assess internal resources and performance against external environment Design of operating unit plans to support strategy implementation using data to conduct operational business unit gap analysis and set performance standards Management of performance using data to manage the organization s operations to the performance metrics required for strategic success Evolution of market positioning using data to compare organizational performance against competitors to gain competitive advantage through refined market positioning Participation in performance-based contract arrangements using data to prospectively estimate (and manage) performance 64

65

2013 Performance Management Institute February 14-15, 2013 Clearwater Beach, Florida 2013 Planning & Innovation Institute June 11-13, 2013 New Orleans, Louisiana 2013 Executive Leadership Institute September 11-13, 2013 Gettysburg, Pennsylvania 2013 Technology & Informatics Institute October 24-25, 2013 Philadelphia, Pennsylvania 66

The market intelligence to navigate. The management expertise to succeed. www.openminds.com openminds@openminds.com 717-334-1329 877-350-6463 163 York Street, Gettysburg, Pennsylvania 17325