Cultural Transformation Drives Breakthrough

Performance

Cone Health

R. Timothy Rice CEO

November 13, 2012 | Chicago, IL

Joan Evans Vice President for People Development & Chief Learning Officer

Transformational Leadership for

Top Tier Performance Tim Rice, CEO

Joan Evans, Vice President, People Development

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Cone Health – System Overview

• Facilities • 5 Hospitals - 1,035 Acute Care Beds • 2 Ambulatory Surgery Centers • 1 Nursing Home – 92 Beds • 2 Freestanding Ambulatory Care Campuses, Including

a Freestanding ED • 100+ Outpatient and MD Facilities, Including JVs in

Imaging, Cardiovascular Services, and Oncology Services

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Cone Health – System Overview • People

• Over 8,600 Employees • 1,000+ Medical Staff Members; 320+ Employed

Physicians in Cone Health Medical Group

• Patient Care (FY 2012 Estimated) • 48,860 Discharges; 60,666 Discharges + Observations • 229,842 Inpatient Days; 4.68 ALOS • 460,856 Outpatient Visits; 255,730 ED Visits

• Finances • Over $1 Billion Revenues; $1.9 Billion in Assets • Financial Ratios At or Above AA Benchmarks

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Strategic Target

Our Mission We serve our communities by preventing illness, restoring health and providing comfort, through exceptional people delivering exceptional care. Our Vision Cone Health will be a national leader in delivering measurably superior healthcare.

Our 2009 Strategic Plan

“…Culture is everything” Louis V. Gerstner, Jr.

Former CEO IBM

The Case for Change

• New COO from outside – tough transitions

• Several leadership changes in process

• Assessment of current culture – not congruent with Senior Leadership’s view

• Organizational complexity over time

To achieve new vision – breakthrough thinking is needed!!

Infrastructure for our Transformation

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Leadership Coalition

High Performance Leader

Keystone Project

Enrollment Team

Projects Projects Projects

Breakthrough Workshops; Breakthrough Projects

People Excellence Celebrations

New Values, Principles and Practices

Used with Permission

Understanding Breakthrough!

Executive Steering Committee Concerns

• Need breakthrough performance in the areas of service, quality and cost.

• Need to accelerate change to be top decile organization by 2015.

• Need new tools and competencies to lead this.

Reward effort Reward results

Talk about Take action about

Strong management Leadership & vision

Finance focused Patient focused

“Do a good day’s work.” Inspiration & Passion

Silos Shared commitment

Accept the “drift” Breakthrough

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Transforming our Leaders

Then Now

Key Concerns for Leadership

• Could current leaders help us transform and could they adapt to leading in a new culture?

• What new competencies did our leaders need to help Cone Health transform and how would we build those competencies?

• What behaviors would be rewarded in our new culture? How different or similar would these be compared to our existing culture?

Developing Breakthrough Leaders

• New leadership competency model and new performance management tool

• 9 month High Performing Leader executive development

• Mandatory 3 day + 1 day Breakthrough Workshop for ALL leaders (400 to date)

• Extensive coaching for leaders at all levels

Developing Breakthrough Leaders

• We taught our leaders how to leverage the generative power of language to create a future aligned with our vision.

http://www.youtube.com/watch?v=Hzgzim5m7oU

Developing Breakthrough Leaders

• Breakthrough Projects launched.

– In the context of our new culture with extensive training and coaching for all participants.

• Engaging physicians and employees throughout CH.

– Action plans developed to engage, to spread and build on the leadership’s efforts

Leadership Excellence Symposium

Putting our Values into action… our NEW

Operating Principles and Practices

Our Results to Date

“One of the best implementations I’ve

ever seen” – quote from Epic Team Lead

Cone HealthLink (EPIC) Implementation Commenced 2/1/12, Go Live At Remaining Sites on 11/4/12:

Cone Health Improvement = 3.0 improvement from Jan ‘11 to Sep ‘12 *Average Hospital Improvement (1,600 hospitals in database) = 0.31 improvement. Top improving hospitals achieve = 1.41

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Culture work began

Patient Satisfaction Cone Health has improved 9x more than other

hospitals across the country*

2012 Employee Partnership Scores – July 2012

Cone Health Employee Turnover Decreases!

Culture Creates Context for Quality Improvements

• “I know that as a direct result of our focus on culture, the very fiber of “who we are being” every day, the patients we serve are measurably safer. Achieving high quality and highly reliable care is a journey that begins with culture, and Cone Health is well on that journey, I can feel it…”

Dennis T. Campbell II, MS, BSN, RN

Executive Director, Quality and Patient Safety

Other Results

• Risk Adjusted Complications Index

20 % decrease

• MRSA rates 44% decrease

• Re-admission rates for AMI, HF and Pneumonia decrease

Partnering With Physicians

• 44% increase in MD satisfaction

• Creation of Clinically Integrated Network

– ACO in Medicare Savings Project – 32,000 lives

– Developed MD trust – MD leadership

• Creating Cone Health Medical Group

– Out of 350 employed MDs without structure

– MD led!!!

• MD to MD trust, MD to System trust

Critical Success Factors

• Leadership from the top of the organization, including Board of Trustees

• Alignment of work with critical elements of our strategic plan

• Enrollment of physicians and employees at all levels.

• Unhooking from the past; not settling for past successes

Full Steam Ahead