going radical
DESCRIPTION
Closing Plenary Address: Gerard van Grinsven, President and CEO of Henry Ford West Bloomfield HospitalTRANSCRIPT
GERARD VAN GRINSVENPresident & CEO
Henry Ford West Bloomfield Hospital
Henry Ford West Bloomfield Hospital
GOING RADICALGOING RADICAL
WASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAW WAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNE
OAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMB ST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIR
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HFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCH
KingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswood
HFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt Share
> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%303030303030303030%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 505050505050505050%%%%%%%%%101010101010101010%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 303030303030303030%%%%%%%%%555555555%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 101010101010101010%%%%%%%%%
< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%
HFMHHFMHHFWBHHFWBH
Columbus CtrColumbus Ctr
Henry Ford WB Henry Ford WB and Novi and Novi Medical CentersMedical Centers
CHSCHS
HFMH-WHFMH-W
HFHS/Consortium HFHS/Consortium Proton Beam Proton Beam
Therapy CenterTherapy Center
A Competitive and Crowded Market
WASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAW WAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNE
OAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMB ST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIR
HFWBHHFWBHHFWBHHFWBHHFWBHHFWBHHFWBHHFWBHHFWBH
HFHHFHHFHHFHHFHHFHHFHHFHHFH
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HFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCH
KingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswood
HFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt Share
> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%303030303030303030%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 505050505050505050%%%%%%%%%101010101010101010%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 303030303030303030%%%%%%%%%555555555%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 101010101010101010%%%%%%%%%
< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%
HFMHHFMH
Medical School with
Oakland Univ.
Beaumont Independence. Twp Medical Center
HFWBH
Columbus CtrColumbus Ctr
Henry Ford WB and Novi Medical Centers
CHSCHS
HFMH-WHFMH-W
Beaumont Proton Beam Therapy Center - $160M
HFHS/Consortium Proton Beam
Therapy Center
Beaumont children’s surgery center
A Competitive and Crowded Market
WASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAW WAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNE
OAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMB ST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIR
HFWBHHFWBHHFWBHHFWBHHFWBHHFWBHHFWBHHFWBHHFWBH
HFHHFHHFHHFHHFHHFHHFHHFHHFH
HFWHHFWHHFWHHFWHHFWHHFWHHFWHHFWHHFWH
HFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCH
KingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswood
HFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt Share
> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%303030303030303030%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 505050505050505050%%%%%%%%%101010101010101010%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 303030303030303030%%%%%%%%%555555555%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 101010101010101010%%%%%%%%%
< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%
McLaren: Health Care
VillageHFMHHFMH
POH: trauma center
Providence Park
Medical School with
Oakland Univ.
Beaumont Independence. Twp Medical Center
HFWBH
Columbus CtrColumbus Ctr
Henry Ford WB and Novi Medical Centers
Botsford Cancer Center
CHSCHS
HFMH-WHFMH-W
Beaumont Proton Beam Therapy Center - $160M
HFHS/Consortium Proton Beam
Therapy Center
Beaumont children’s surgery center
A Competitive and Crowded Market
WASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAWWASHTENAW WAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNEWAYNE
OAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDOAKLANDLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONLIVINGSTONMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMBMACOMB ST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIRST. CLAIR
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HFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCHHFBCH
KingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswoodKingswood
HFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt ShareHFHS Mkt Share
> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%> 50%303030303030303030%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 505050505050505050%%%%%%%%%101010101010101010%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 303030303030303030%%%%%%%%%555555555%%%%%%%%% ~ ~ ~ ~ ~ ~ ~ ~ ~ 101010101010101010%%%%%%%%%
< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%< 5%
McLaren: Health Care
VillageHFMHHFMH
POH: trauma center
Providence Park
Medical School with
Oakland Univ.
Beaumont Independence. Twp Medical Center
HFWBH
Columbus CtrColumbus Ctr
Henry Ford WB and Novi Medical Centers
Botsford Cancer Center
CHSCHS
HFMH-WHFMH-W
Beaumont Proton Beam Therapy Center - $160M
HFHS/Consortium Proton Beam
Therapy Center
Beaumont children’s surgery center
With all of these projects, our delivery of health services to Oakland County residents
will have to be extraordinary.
Are We Prepared?
A Competitive and Crowded Market
Value Innovation: The Cornerstone of Blue Ocean Strategy
Cost savings are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economies kick in due to the high sales volumes that superior value generates.
Costs
Buyer Value
Value
Innovation
The Simultaneous Pursuit of Differentiation and Low Cost
Red Ocean Versus Blue Ocean Strategy
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space
Beat the competition. Make the competition irrelevant.
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost.
Align the whole system of a firm’s activities in pursuit of differentiation and low cost.
The Four Actions Framework
ReduceWhich factors should
be reduced wellbelow the industry’s
standard?
EliminateWhich of the factors
that the industrytakes for granted
should be eliminated?
RaiseWhich factors should
be raised wellabove the industry’s
standard?
CreateWhich factors should
be created thatthe industry hasnever offered?
A NewValueCurve
Eliminate-Reduce-Raise-Create Grid: The Case of Cirque du Soleil
Eliminate
Star performers
Animal shows
Aisle concession sales
Multiple show arenas
Raise
Unique venue
Reduce
Fun and humor
Thrill and danger
Create
Theme
Refined environment
Multiple productions
Artistic music and dance
“If you don’t like change,
you are going to like
irrelevance even less”
General Eric Shinseki
“Doing more of what you are already doing and expecting a different result is a sign of insanity.”
Albert Einstein
Taking Health & Healing Beyond
the Boundaries of Imagination
PATIENTS & FAMILIESCOMMUNITY
Health HealingWellbeing
“Taking health and healing beyond the boundaries of imagination”
Respect for People
High Performance
Social Conscience
Learning & Continuous Improvement
Our Values
Community Center for Well-Being
Commitments
The 4 Filters
Our Framework for Decision Making1. Quality and Safety
2. Compassionate Care
3. Memorable Experiences
4. Efficiency
Healthcare is Undergoing a Seismic Shift Environment is becoming increasingly competitive
– HCAHPS– Rising health consumer orientation
Expanded choice Expanded information
Implication: Healthcare systems must undergo fundamental change in ways they serve patients– Simply “satisfying” patients will no longer be enough– Change in the culture and delivery systems oriented to viewing
patients as consumers who are both “patients” (treated) and “customers” (served) is mandatory
Adapting healthcare service models to be more customer oriented (i.e.,, retail, hospitality)
Measurement only no longer adequate– System of change management driving learning to front-line
Satisfaction Is Not Enough | Three Kinds of “Satisfaction”
1 2 3 4 5
Not at all satisfied
Extremely satisfied
Dissatisfied
“1-4”
EmotionallySatisfied
“5”“5”
RationallySatisfied
Business performance among “rationally satisfied” is no better thanamong “dissatisfied”. Only “emotional satisfaction” delivers superior results
Building Stronger Patient/Customer RelationshipsBuilding Stronger Patient/Customer Relationships
What Is the Solution?
The Right Measures – Systems have been aiming at the wrong target:
“satisfied patients defect.”– They’ve had an incomplete picture of the
patient/customer relationship: “rational + emotional.”
The Right Interventions – Wherever, however, and whenever customers are
“touched.”
CEO’s are moving human capital management to the top of the agenda, recognizing that it is an indispensable element of organization success…For healthcare to survive and prosper in the wake of the worst workplace shortage in years, focused attention needs to be placed on the attraction, development, and retention of employees.
―The Road to Recovery, AON Healthcare Study
Best Practice Human Capital Strategies are
Shifting to the Top…
Talent
Unteachables
Imagine. …Teach
ab
les
Ski
ll/K
now
led
ge
70 3065 3560 3055 4550 5045 5540 6035 6530 7025 75% %
PeopleBusiness/FinanceOutcomes
Team/OrganizationCultures
Customer Loyalty(Guest, Client, Patient)
BY DEFAULT –— TYPICAL ORGANIZATION
2
4
7-8
5
Talent-BasedOrganizationSM
(TBOSM)
SustainedExcellence
(SE)
High PerformanceCulture(HPC)
Customer Advocacy
(CA)
8-10
8-10
8-10
8-10
Vision
Mission
VALUES
BY DESIGN –— WORLD CLASS/BEST PRACTICE ORGANIZATION
Building a Foundation with Impact Concepts, Tools, and Processes
Talent vs. Competency– Understand the foundation of top
performance
KNOWLEDGE—What I know
SKILLS—What I do
TALENT—Natural predispositions, spontaneous, recurring patterns of
thought, feeling, and behavior
CO
MP
ETE
NC
IES
( Talent + Fit ) x Investment = GrowthSM
Work Style
People Acumen
Influence
Thought Process
Drives & Values
( T + F ) x I = GSM
( Talent + Fit ) x Investment = GrowthSM& Impact
Location
Organization
Manager / Team
Role/ Position
Pay / Benefits / Working Conditions
Career Needs
( T + F ) x I = GSM
( Talent + Fit ) x Investment = GrowthSM and Impact
Recognize / Reward - Appreciate
Communication – Expectations, Feedback, Dialogue, etc.
Relationships – Mgr., Team, Customers
Support & Equip – Set up for Success
Performance Planning – Maximizing Impact
Train & Develop – Prepare and Grow
Career Pathing – Future Plans
( T + F ) x I = GSM
16%
Engaged NotEngaged
ActivelyDisengaged
30% 54%
Engaged NotEngaged
ActivelyDisengaged
Loyal, Psychologically Committed, More Productive,
Higher Retention
Productive but Not Psychologically Connected, More Missed Days, More
Likely to Leave
Physically Present but Psychologically Disruptive, Unhappy and Insist on Sharing Their Unhappiness with
Others
Three Employees (US)
Associate Retention + 50%
Customer + 56%
Safety + 63%
ENGAGEDWORK UNIT
Meta-Analysis 2003 — Conclusions
Profitability + 27%
Productivity + 38%
+78%Overall Performance
(composite of all five outcomes)
+94%Composite Performance
(composite of direct outcomes)
Engaged work units have higher success rates(improvement in probability of success: above-average performance)
Employee Engagement Outcomes
Top quartile compared to bottom quartile
-51% -51%
-62%
12%18%
12%
-31%-27%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%Turnover
Absenteeism ShrinkageSafety
Incidents
Customer Productivity Profitability
Difference between engaged and actively disengaged employees in unexcused absences
High- Turnover
Orgs.
Low- Turnover
Orgs.
-680,000 employees-24,000 business units-125 companies-37 industries
Companies in the most engaged quartile have significantlybetter performance than those in the least engaged quartile
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
Most Engaged
2nd Quartile
3rd Quartile
Least EngagedQuartile
.
Employee Engagement Correlates with Malpractice Payments
Hospitals in the most engaged quartile pay $1,120,000 less in annual malpractice claims than hospitals in the least engaged quartile.
3.28 3.33
3.683.80
3.23.43.63.84.0
Year One Year Two Year Three Year Four
Results — Workplace Engagement
Results — Nurse Turnover
Employee Engagement is Directly Related to Nurse Turnover
32.9%23.2%
13.8%
0%
20%
40%
Year One Year Two Year Three*360 Bed Facility *360 Bed Facility
4242
Customers are not strictly rational – healthy, engaged customer relationships have a significant emotional dimension which must be measured and managed.
“When it comes to customers, feelings are facts.”
-Simon CooperPresident & COO,
Ritz-Carlton Hotel Company LLC.
Understanding Customer Engagement
Simply satisfying customers on a rational basis is not enough to drive financial performance.
Customer Engagement
What is Customer Engagement?– Customer Engagement describes the health of the
relationship between a customer and a brand…the rational and the emotional.
– Great brands and great customer relationships are underpinned by emotion.
– Has a stronger relationship than satisfaction to performance outcomes Physicians (i.e., referrals, share of procedures,
retention) Patients (i.e., return, use of other facilities such as
Wellness Center & Spa)
Per-Customer Revenue
87
99
107
123
Indexed Performance (100= Average)
Actively Disengaged Not Engaged Engaged Fully Engaged
Customer Engagement DrivesFinancial Performance
23% Premium
13% Discount
36% Net Difference