The healthcare industry like many other industries (manufacturing, package express, and the airline industry to name a few) have deployed Lean and Six Sigma tools towards the goal of improving customer value performance by reducing cost while simultaneously improving quality.
Unfortunately, when asked, most healthcare executives remain unable to describe a single value-based promise that their customers, patients and health plan members, can specifically count on every time.
For example, when FedEx first started, their value-based promise was, “we will get your package to you by 10:30 am the next day.” Time is a measurement we all agree on. So, if the package arrived prior to 10:30 am, the promise was kept.
Starting at 10:31 am, the promise was broken. In that context of a clear and measurable promise, let me ask again “what value-based promise” can patients or health plan members count on every time in a measurable way?
Some joke that perhaps an example is that a patient will receive a bill. While this may be humorous to some, executives will quickly concede that this is not of measurable value or consistently on-time, complete, and correct. (OTCC is a hallmark of high-performing organizations).
Why is this the case? Particularly in an industry which has invested heavily in Lean Six Sigma tools, the very initiatives which are intended to reduce non-value added white space and variation?
Let’s consider another value-based performance example, this one financial.
In the volume to value transition healthcare reimbursement may soon become entirely risk-based, meaning that plan participants will expect that all of their care will be provided at a fixed cost-per-head rate, a payment arrangement know as capitation.
With capitated payment rushing at us, is it not perplexing that most hospitals are still unable to function at Medicare break even, which represents a fixed payment per diagnosis or DRG for case rate patients? Yet those same organizations expect to do well in full value-based risk scenarios? How so?
Unless a dramatic shift in performance planning and daily operational process execution occurs many healthcare organizations, who plan to take on full population health risk, will fail.
What is missing is strategy deployment competency.
Strategy deployment is a comprehensive planning and execution discipline which essentially serves as the ‘brain and nervous system’ of a Lean Six Sigma operation.
The purpose of strategy deployment is to focus and align the organization’s activities to achieve customer first, zero defect performance, and to be able to rapidly respond to market threats and opportunities.
This is especially important for executives and Lean Six Sigma practitioners because it ensures that customer value creation is aimed at the heart of the enterprise, and does not simply become a peripheral function.
Within the strategy deployment discipline, customer value is defined at the highest levels of the organization as the system approach to organizational planning and continuous improvement.
Centrally coordinated strategy deployment keeps the organizational focus on creating maximum value for customers, so that Lean Six Sigma tools like value-stream mapping, standard work, variation control, and pull systems become a means to an end and not the end in themselves.
Mastering the strategy deployment discipline helps organizations, like healthcare systems, overcome the inertia and incoordination of silo-based operations, and drives out all of the non-value added waste in order to ensure that organizational performance success is reliably and predictably achieved regardless of changes in the market environment.
This gap in strategy deployment competency, particularly in healthcare, is why the Strategy Deployment Institute has been formed.
Our mission is to help organizations SOAR by achieving customer first, zero defect transformational performance through high quality strategy deployment education and guided engagements.
Our approach is summarized below:
Step 1: Learn
Comprehensive Strategy Deployment Education
Starting with a Foundations course we provide a total of seven (7) sequential courses to enable participants to understand and apply the principles and tools of strategy deployment effectively within their own organization.
Step 2: Discover
Performance Gap Assessment
At the conclusion of the Foundations course we encourage participants to complete a ‘grasp the situation’ (GTS) analysis of their organization to clarify the planning and execution challenges their organization faces, and to quantify the specific performance gap measures they would like to address in the subsequent strategy deployment courses.
If preferred, an organization can also ask one of the participating Strategy Deployment Institute consulting organizations, such as the SOAR Vision Group LLC, to complete an on-site GTS analysis.
Step 3: Engage
Participants Aligned with Goals
Of the seven courses, the first and last, Foundations and Sustain, are provided via an online e-learning experience, to give your organization maximum flexibility for broad organizational participant learning and engagement.
The middle five courses, Strategize–Organize-Deploy– Monitor–Improve, are delivered using both interactive e-learning and on-site interactive team engagement sessions to ensure that the key executive and department leaders responsible for Strategy Deployment are able to effectively achieve the desired operational transformation.
Step 4: SOAR
Guided Strategy Deployment
On-site guided strategy engagements are offered to organizations through the Strategy Deployment Institute, via the SOAR Vision Group consulting team, to comprehensively manage a successful on-site Strategy Deployment.
Due to the scope and transformative nature of strategy deployment these engagements are extended engagements and include the delivery of all seven Strategy Deployment courses during the course of the engagement.
A guided engagement process addresses all of the organization adoption, execution, and result management challenges helping your organization to SOAR.