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TRANSCRIPT
Strategies for Success: Focus on Five Method to Achieving
Functional Balance
FINANCIAL PERSPECTIVES
Presented By:
Colleen Rudio, Chief Strategist
406.239.3547 [email protected]
Review: Seek Functional Balance
Strategic Goals
Purpose Management
Process Management
Profit Management
People Management
Product & Service
Management
Awareness of desired change
Understanding of change direction
Commitment to the work setting
Action to change personally
Internalization of new behaviour
Information with some
involvement sufficient here
Significant
involvement
needed
Review: Understand Change Stages
Top Priority
Fully Supported
Painful and Costly
Threatening or Useful
Easy or Burdensome
QUESTION….What is your team’s view
on gaining financial perspective?
5
FINANCIAL
CONSTRAINTS
ARE GETTING
TOUGHER…
TIME AND
AVAILABILITY
IS GETTING
SHORTER…
PATIENT AND
TEAM
EXPECTATIONS
ARE HIGHER…
So…what can we do about it?
Today we will
FOCUS on…
Defining
Understanding
Identifying
Designing
Mitigating
Balanced
Scorecard
The balanced scorecard is unique to
the organization, the people and the
industry. It is a strategic
performance management tool that provides performance direction or
serves as risk management.
Kaplan and Norton
Scorecard Purpose:
Understand Key Perspectives
• How do you increase value? Financial Perspective
• How do you appear? Customer Perspective
• How do you excel? Operational Perspective
• How do you improve? Growth & Innovation Perspective
Revenues
Costs (Fixed / Variable)
UN’s, RE’s, MIS’s
KPIs
Provider Support
Vendor Relationships
Team Performance
Lost Opportunities
Turnover / Low Morale
Unspoken Expectations
Scorecard Intention: Drive Results Below The Surface
Accounting Systems are accurate and timely. Accurate Numbers, Reliable Reports, Realistic Budget
Core Functions are properly aligned & efficiently
performing. Organizational Structure, Operational Flow, Lean Performance
Improvement Strategies are
clearly defined and assigned. Profit Initiatives, Continuous Improvement,
Resource Leveraging
Scorecard Assumption: Organizational Capacity to Perform
Key Financial Reports in all organizations Balance Sheet – presents an organizations financial position at
the end of a specified date.
Income Statement – shows the profitability of the organization for a specified time period (e.g. Month, Quarter, Year).
Cash Flows – reports the cash generated and used during the time interval specified.
Ratios and Industry Benchmarks – key performance indicators (KPIs), key ratios such as current ratio, debt to equity, turnover, etc. compared to industry and company trends
Gaining Financial Perspective
Financial statements are used by two types of users
Internal Users
Owners/Managers/Team
Manage income & expenses
Manage growth
Manage staffing
Analyze performance
Determining profitability
Future planning
External Users
Banks/Funding Sources
Shareholders/Investors
Vendors/Suppliers
Tax Preparers
Gaining Financial Perspective
Gaining Financial Perspective
How can you increase and measure value? Increase
Staff retention, cash flow, operating income by care unit, net patient
revenue, total ROI per improvement initiative, net profitability,
Reduce
Staff turnover and/or absenteeism, average hospital bed occupancy,
average patient discharge time, cost of care per patient, average
patient stay, cost per patient day, days for insurance reimbursement,
supply expense as a % of net patient revenue, total costs per hospital
bed, average employee cost, discharge delays
Improve
Total patient value, efficiency of care delivery, utilization of staff
resources, projected vs actual financial results, hospital discharge
success
Success Factor:
Integrate Versus Create
Budgeting Processes
Scorecard Systems
Workforce Management
Performance Management
Cost Management
Cash Flow Management
Profit Management
Inventory Controls
Efficiency Reviews
Workload Management
What are you currently
MEASURING?
How does it help increase
VALUE?
Is everyone AWARE of why it
matters?
Does everyone UNDERSTAND
how they can impact it?
Participant Activity:
Target Your Financial Perspective
Your ultimate challenge is often the
people...find value and build influence
from a different perspective.
Get It Done: Dominant
Financial Perspective Strengths: Dominants see the end
results, measure value quickly, determine non are fast-moving, can
keep a group aimed in the right direction, see new ideas, get things
done fast, strong-willed, and goal-oriented.
Influencing KPIs: • Final performance-based outcomes
• Project’s return on investment
• Implementation pace
• Improved workflows
• Downtime reduced or eliminated
• Efficiency ratios
Get Excited: Expressive
Common Strengths: Expressives are enthusiastic, talkative,
outgoing and people-oriented. They have the ability to persuade other
people to work together and thrive on new projects.
Influencing KPIs: • Final performance-based outcomes
• Impact on team and/or patients
• Level of team engagement
• Team and/or patient satisfaction ratio
• Reduction in unnecessary workflows/steps
• Increase in talent utilized and/or skills gained
Get It Right: Analytical
Common Strengths: Analyticals are logical, detailed, highly
dependable, careful, and compliant. Decisions are made after researching
and they are very persistent in their problem solving efforts.
Influencing KPIs: • Final financial-based outcomes
• Project return on investment
• Cost vs benefit analysis
• Efficiency ratios
• Reduction of costs and/or resource allocations
(people, inventory, assets, etc.)
• Team and/or patient cost(s)
• Project completion on-time and on-budget
Get Along: Solid
Common Strengths: Solids are good listeners, seemed to be
“plugged in” to the work environment, agreeable and cooperative. They
focus on being a team player and communicate well in most situations.
Influencing KPIs: • Impact on team and/or patients
• Increase in care and/or service delivery
• Length of time/resources per patient
• Project cost(s) vs benefit(s)
• Team and/or patient satisfaction ratio
• Increase in talent utilized and/or skills gained
Staff development and
training
Culture of accountability
by the numbers
Use KPIs to prove
team’s ability to set and
accomplish goals
Focus on
Communication
Measure without blame
Success Factor:
Build Team’s Financial Perspective
Here is where I am today?
Where do I want to be?
How do I begin to move?
What do I need to do next?
Who will be responsible?
What techniques will help?
What outside resources will I
need?
Participant Activity:
Achieve Functional Balance
Colleen Rudio, Chief Strategist
406.239.3547
Thank You!
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