trends from the trenches - mastering the front and back end of innovation
DESCRIPTION
Healthcare Innovation: Trends From The Trenches Mastering the Front and Back End of Innovation Featured Speaker: Andrea (Andi) Simon, PhD and President of Simon Associates Management Consultants In this next webinar, we will be talking about healthcare innovation in three areas: - Taking data and ideas and envisioning new ways to solve old problems simpler, easier and better. - Taking these ideas and turning them into testable innovations. - Building this into a culture of innovation for your institution.TRANSCRIPT
The Front End and Back End of Innovation
Healthcare Innovation: Trends from the Trenches
Andrea J. Simon Ph.D. February 14, 2014
Our Presenter
Andrea Simon, Ph.D., President and CEO
Simon Associates Management Consultants (SAMC)
Dr. Simon (Andi) is a Corporate Anthropologist and Culture
Change specialist as well as an award-winning Branding
and Marketing consultant.
SAMC specializes in helping companies change.
Webinar Series
Healthcare Innovation: Trends From The Trenches
Dianne Auger
Senior Vice President, Marketing
St. Vincent’s Medical Center
President of the St. Vincent’s
Foundation
Linda MacCracken, MBA
Vice President, Advisory Services
Truven Health Analytics
Kriss Barlow RN, MBA
Principal, Barlow/McCarthy
Agenda For Today
Front End of Innovation: How can you “see, feel and
think” in new ways?
Back End of Innovation: How can you turn abundant
ideas into effective innovations?
How You can begin to develop a Culture of Innovation!
10 Steps to Help You Innovate.
Think About It…
"Ideas are like rabbits. You get a couple and learn
how to handle them, and pretty soon you have a
dozen." - John Steinbeck
The Idea Of “Innovation”
At recent workshops I held on
“Change Matters,” I was fascinated
by the answer to my question: “Is your
organization focused on innovation?”
Everyone said “Yes!”
But Doing “Innovation?”
But, when I asked: “What are
you actually doing that is
innovative?”
Their answers: “Not much!”
Not For Lack Of Spending
U.S. government spending on health care R&D,
which came to $53 billion in 2013, is topped
only by the government’s spending on defense
R&D.
Private-sector spending on health care R&D
also runs into the tens of billions of dollars.
Yet, Too Many Efforts Do Not Work
Despite this enormous investment and the magnitude
of the opportunity for innovators to both do good and
do well…
Too many efforts fail
Losing billions of investor dollars along the way.
Some Well-Known “Big” Examples
The disastrous outcome of the managed care
revolution.
The $40 billion lost by investors to biotech ventures.
The collapse of numerous businesses aimed at
bringing economies of scale to fragmented physician
practices.
Today, Let’s Think About This
How can you:
Turn the undesirable to desirable, leading to fresh innovative solutions.
Develop the skills to do this.
Build an affection for ideas -- “see, feel and think” in new ways.
And, a process to “do” things that help implement ideas into effective innovations.
Create a culture that embraces change and keeps it coming.
12
Market Evolution: Adapt Or Die!
Change
Matters !!!
The Brain, Habits and Culture
Why We Hate Change
You See Things As You Are
“We don’t see things as they are. We see things as we
are.” ~Anais Nin
14
Need New Eyes
“The real voyage of discovery consists not in seeking
new landscapes but in having new eyes.” ~Marcel Proust
You Don’t Know What You Don’t Know
What we know
What we know we don’t
know: like how to fly a plane
or speak Japanese
What we don’t know we
don’t know—
EVERYTHING ELSE
16
Brain Hates To Change
17
Change creates Pain
in the Brain
Power Of Habits
While we love to think that
we are full of “free will”
But, we are really products
of well-honed habits.
Comfort Of The Herd--Culture
Randomness To Fool The Mind
To create new solutions, innovate we have to Fool the Mind.
Have to look outside your current path and capture ideas from other places.
“See” in new ways.
20
You Have Great Ideas
Best ideas are with You!
And with your customers and partners.
How can you tap into them?
But, Scary, Fuzzy Goals Hold You Back 22
Trends In The Trenches: We See All Kinds And In
All Ways
Innovation Is Happening
Turning Reluctant Innovators..
It use to take physicians 13
years to adopt new evidence-
based medicine protocols.
Now it is down to 10 years.
Physician Engagement To Change
Summit Medical: Paving the way for accountability
Deciding to become a Medicare ACO, Summit Medical Group—a 218-physician group with approximately 140 primary care physicians—had a Real Challenge.
What did they do? Got the physicians engaged to change.
Organizations Re-Designed To Innovate
…at the Cleveland Clinic, they are teaching doctors, nurses and staff to “think of themselves and act like an innovator, to try and come up with new and better ways of doing their job, then to use the organization that (Chris) Coburn's created to make something from it.”
New Technology Is Transformative
New Entrants: Walgreens “Take Care” Clinics
Changing The ED Experience
Innovative New Solution: Sending EMS out to
people’s homes to do triage rather than just bringing
them back to the Emergency Department—such as
Christian Hospital in St. Louis has just launched.
Innovations At The Intersections
New Uses for Technology Solutions: Telemedicine
services in pediatricians' office to connect with the
specialists at the Academic Medical Center—such as the University of Michigan is doing.
Different Types Of Outreach
Addressing Problems In
New Ways: Doing extensive
high school student cardiac
screenings to eliminate the
risk of undetected heart
attacks on the sports field—
as Hurley Medical Center has
been aggressively promoting.
Little Steps That Lead To Big Wins
1. Front-line hospital staff as daily problem solvers
by Marcelo Zottolo
Want to drive performance? Stop telling your front-line staff what to do and engage them in daily problem solving.
One of the biggest wastes in healthcare, aside from the wasteful
spending, is the waste of not reaching to your front-line staff for daily
problem solving.
At Cape Coral Hospital, in southwest Florida, we have been experimenting with daily
improvement huddles in the emergency department. These are five- to 10-minute stand-up
meetings, twice a day, to review service, safety and quality performance. It also provides
staff-generated opportunities and ideas for improvement.
Read more > >
Business Model Innovations
BayCare Health System with 10
Hospitals on the West Coast of
Florida is changing its business
model to transform its mission
from fixing you when you are
broken or sick to population
health and keeping you well.
Mobile Medicine That Comes To You
www.mymobilemedicine.com
Or This Type Of Mobile Medicine
Then There Is Innovative Pediatricians
Coming Soon To Disrupt Even More
Smart Contact Lenses from Google with chips that
can read your tears and evaluate your blood sugar
for diabetes.
Feels Like Everyone Else Is Doing It
“Why Not Me?”
How do you really “see, feel and think in new
ways?”
And then how do you actually “do” innovation?
What To Do?
Grab hold and start building something quickly, or
else watch your brand wash away into
obsolescence.
Continuous Improvement?
Incremental Innovation?
Blockbuster Change?
What Do We Mean By Innovation?
Think About A Continuum Of Innovation
Create New
Market
Manage Existing
Market
Radical
Change
Minimal
Change Customer Experience,
Cost Savings Strategy
Low Risk, Many
Competitors
High Risk, High
Reward, Offensive
High Risk, Defensive
Strategy
Some Initial Observations To Consider
Innovation is not a lot of ideas sitting around
searching for some meaning.
It is critically important that it is tied into business
strategy, customer experiences, organizational
processes, structure, and capability.
It doesn’t do well by itself.
Execution Wins!
Innovation is when you turn ideas into action—and
preferably ones that add value in new ways.
It can be incremental or market changing.
But how do we know which ones will work?
Innovative Cultures
The big differentiator between vibrant innovative cultures and those that speak about innovation and hope it happens lies in these values and beliefs:
Risk tolerance
Idea sourcing
Collaboration
Small wins, win!
A No Failure attitude: success and learning experiences
Measure a lot to learn what works all along the way
Build A Culture Of Innovation
An organization that can execute well on a few
good “wins” and keep learning is more powerful
than one that has lots of great ideas with no way
to execute.
The Challenge
All too often a company has established and
branded itself as leaders in its industry.
But over time, the company has fallen into old habits
addressing client needs with the same solutions.
Frequently, we find the “factory” driving the
business strategy.
Away From Competitive Advantage
As times change, the old strategy of benchmarking
your system against others is no longer useful.
In-industry competition as systems consolidate
around you no longer works.
Time to look elsewhere for new ideas.
To Create -- Not Compete.
And…
Customers are finding new solutions that are simpler,
easier and faster—and often less costly.
Staff are ill-prepared to change and resist efforts
to transform what they are doing and how they are
doing it—that culture.
So, let’s begin to change…
Let’s Talk About The Front End Of
The Front End Of Innovation
What Problem Do You Really Want To Solve?
What Job Needs To Be Done – For Whom?
First, Define The Job To Be Done
What do you think you want to change?
To solve what problem?
What job is to be done?
Maybe You Want To Respond To…
Newly Insured?
Build an effective ACO and/or Medical Home?
Unmet Needs of Men?
Pressure to reduce readmissions and frequent users of your ED?
Changing demographics and lifestyles of the future users -- that Gen Y Generation?
Pick One
All of them are challenging the status quo in
healthcare systems today – whether you are selling
people pharmaceuticals or trying to engage them
with your PCP’s or Medical Homes.
Now, Let’s Go Through A Process
• Deconstruct today
• Build an idea bank
• Pull in the information
from across other
industries, markets, etc.
• Examine
• Explore
• Experiment
• Testable Prototypes
• Include Customers in
Creation Process
• Test, Test, Test and Learn
• Decisions
• Action
Goals Converge Emerge Diverge Ideas
Bundles
Intersections
53
Divergence Comes First
How can we take the
problem and think in new
ways about how to solve it?
Must deconstruct it.
We love Innovation
Games® for taking things
apart.
Divergence: Or Go Exploring
Must watch and listen
Research is clear: people
cannot tell you what they
are doing.
Be an amateur
anthropologist.
55
56
Divergence: Other Tools
Go Exploring: Like “Undercover Boss”
Spend a “Day in the Life of a Customer”
Have Lunch and Listen
Take a Camera
Divergence: Goal To Build An Idea Bank
A place to capture and
park ideas before you
know what to do with
them.
Who And What Are You Looking For?
Nonusers
Unmet needs and go-arounds
Emerging trends
Pain Points you can help resolve
Better use of resources
Better experiences
What Are Key Levers?
Faster: How can you make something faster?
Simpler: How can you make using you, choosing you, simpler and easier?
More Productive: How could you make them more productive?
More Fun: Maybe make the experience less complex, even fun!
Industry
Strategic group
Buyer group
Scope of product or service
offering
Functional-emotional orientation of
an industry
Time
Where Should You Look?
Not where you think!
Must look outside of
what you know
today.
Look across…
But Don’t Forget Employees
Engage employees across the organization.
Employees have an abundance of ideas but no
place to put them.
Use Modelling
Ideas come together at the
Intersections.
Often they need a picture
to allow the team to see it
together. It helps the brand
visualize the end result.
What About Execution?
With All Those Ideas What Happens Next?
How Do You Know Which Ideas Are Worth Pursuing?
How Do You Turn Them Into Effective “Innovations?”
Themes Emerge
• Deconstruct today
• Build an idea bank
• Pull in the information
from across other
industries, markets, etc.
• Examine
• Explore
• Experiment
• Testable Prototypes
• Include Customers in
Creation Process
• Test, Test, Test and Learn
• Decisions
• Action
Goals Converge Emerge Diverge Ideas
Bundles
Intersections
64
Searching For Small Wins
How do we convert the abundance of ideas into testable new solutions?
How radical do you want or need to be?
Are we going to do something that is just incrementally better than before? Which is fine!
Or something this is a “really big idea” that will “WOW” the market?
Remember The Continuum Of Innovation
Create New
Market
Manage Existing
Market
Radical
Change
Minimal
Change Customer Experience,
Cost Savings Strategy
Low Risk, Many
Competitors
High Risk, High
Reward, Offensive
High Risk, Defensive
Strategy
With Abundant Ideas…
See how ideas emerge in new ways.
Watch for ideas at the intersections.
Several Research-Based Models
First, Business Model Generation and Canvases
Alex Osterwalder along with co-author Yves Pigneur and 470 co-
creators, wrote a truly innovative bestseller on business model design
and innovation.
A Second: Blue Ocean Strategy®
Blue Ocean Strategy is a book published in 2005 and written by
W. Chan Kim and Renée Mauborgne, Professors at INSEAD and
Co-Directors of the INSEAD Blue Ocean Strategy Institute about
how to create demand and open new market space--innovate.
A Third: Discovery Driven Growth
Discovery-Driven Growth: A Breakthrough Process to Reduce Risk
and Seize Opportunity by Rita Gunther McGrath and
Ian C MacMillan.
They All Share Same Starting Point
Clarity of a Business Strategy
How to turn the undesirable to the most desirable?
(Maybe Bundle Pricing is ‘cool.’)
How to open new market space addressing unmet
needs? (What about Men?)
How about finding non-users and new users (those
newly insured, perhaps?)
Each Leads To…
Clear, simple story. A Strategy.
With specific steps on how you are going to achieve it.
Becomes a framework, that sets forth how you are going to innovatively add value to solve a problem, perhaps open new markets and grow within them.
Within That New Strategic Vision
What is it you are trying to do?
This must be clear at the beginning or ideas will
wander around in searching of a reason for being — a
mission.
If you do it really well what do you imagine will occur?
Visualization really matters!
Next, Backward Plan
The military uses it; great management consultants
use it; the brain loves it.
Use A Game: “Remember the Future”
Begin with the end in mind and then imagine each step that you need to complete backwards to get there.
Don’t start with today’s assumptions and march forward.
Leadership Engagement
I often begin here and repeat often.
Having a clear focus and specific vision and strategies that senior-level executives embrace is essential to success.
Senior leadership also needs to change its own thinking on the role of innovation in the overall success of the organization.
Change core values and beliefs.
Discovery Driven Growth Conventional
Corporate Culture
Discovery-Driven Culture
Success Makes your numbers; hit
projections
Learning as much as you can for the least
possible cost
Management Focus Day-to-day operations Innovation: Top of Agenda; Top of Mind
Timing Dictated by budget or
planning cycle
Dictated by key learning checkpoints
Revision Indicates a mistake Indicates a learning
Funding Allocated all at once or not
linked to milestones
Limited to amount needed to achieve next
milestone
Termination Decision Delayed, avoided or
reluctantly pursued
Occurs as part of the planning process;
disciplined disengagement
This Is Where The Ideas Really Turn To Testable
Models
Convergence And Your Goals
Themes Emerge
• Deconstruct today
• Build an idea bank
• Pull in the information
from across other
industries, markets, etc.
• Examine
• Explore
• Experiment
• Testable Prototypes
• Include Customers in
Creation Process
• Test, Test, Test and Learn
• Decisions
• Action
Goals Converge Emerge Diverge Ideas
Bundles
Intersections
79
Engage Partners
Include Customers
Ongoing Innovative Culture
Innovation is a process and you can put one into place.
Four of the most damaging words an employee can say:
“Aww, forget about it”
It leads to a culture where we never rest on what we
have always done but we search for new learnings and
constant choices.
Focus employees’ innovation priorities.
Change The Story
Story telling is very powerful. Brain loves stories to
organize the facts.
Innovation is all about changing the story.
Visualization Is Key
Brain has to see it to believe it—really!!
Try to create an amazing abundance of ideas in a
space in which people can express relationships
between concepts, features or other priorities by
manipulating objects on the visual field.
To Get To Your Goals
Recognize innovation as a
bucket with valuable leaks.
10 Steps To Remember
1. Begin with what you think you want to achieve—
fuzzy goals are good ones.
2. Take apart everything you do today. Divergence is
key.
3. Go explore visually, through games, through “deep
hanging out” and in different places.
10 Steps To Remember
4. Build an abundance of ideas—more you have
more likely you will have great ones.
5. Let them Emerge. At the Intersections.
6. Engage lots of people—employees, partners,
customers/patients.
10 Steps To Remember
7. Develop testable prototypes, models, visualization.
8. Test some more. Learn from each test.
9. Get ready to launch. But remain open to pivot and
redirect.
10. Make sure you have the metrics in place to know if
it is working or you might as well start all over.
Innovation Comes From Inside
“If an egg is
broken by outside force, life
ends. If broken by inside
force, life begins. Great
things always begin from
inside.” – Jim Kwik
Next Webinar March 14 At Noon EST.
Join our next webinar.
Featured Speaker: Margaret Davino, Attorney and Partner, Kaufman Borgeest &
Ryan, Chair Elect, New York State Bar Association Health Law Section.
“As the Affordable Care Act is implemented and healthcare expenditures continue
to rise, providers and payers need to explore how to best set themselves up to
succeed in an evolving marketplace. In this 5th webinar, Margaret Davino will
discuss how the relationships between hospitals, physicians and other providers are
changing and what structures are being used for providers and payers to work
together, including accountable care organizations (ACOs). Margaret will also
describe the different models of collaboration between hospitals and physicians,
how these affect reimbursement, and what to expect in the future.”
Thanks To Our Sponsor: HIxD
Healthcare Innovation by Design (HIxD) is a global
network of healthcare delivery and experience
innovators. HIxD is the premiere resource for
healthcare innovation knowledge, networking and
career development. HIxD's 6800 members are
executives, entrepreneurs, clinicians, designers,
architects, engineers and IT professionals.
Discussion And Questions
Share what you see happening in “the trenches.”
Take as many questions as we can now and we can
continue the discussion after the close of the webinar.
For More Conversation And Information
Andrea J. Simon PhD
Corporate Anthropologist
President, Simon Associates
Management Consultants
Office 914-245-1641
www.simonassociates.net
@simonandi
@andisamc