The Operational Excellence Healthcare Alliance (OEHA) is an innovative membership organization dedicated to improving clinical, operational, and financial outcomes by shaping the future of healthcare operations.

1. Operational Excellence Healthcare Alliance – An Introduction
May 2016
Innovate, Collaborate, Excel

2. The healthcare industry is getting increasingly competitive & the challenges
impact employees & patients more and more - new solutions are needed
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3. The problem: Hospitals face financial challenges that need to be addressed
Overview of challenges in the healthcare industry
» Push for profit maintenance while having to increase quality outcomes
and patient satisfaction in a world of lower reimbursements
» Complex organizational structures, systems and processes with
heavily divided cultural silos as a result of merger trends
» Complicated and misunderstood cost drivers
» Insufficient data utilization hinder information flow and impact (e.g.
patient data)
» Healthcare reform & governmental ramifications
» Expected capacity shortages as a result of the aging population: 2014:
54.0 million seniors → 2030: 81.4 million seniors
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Many healthcare organizations face the possibility of serious financial hardship if these issues
are not tackled directly
Industry Trends and Issues

4. The solution: A holistic approach to Operational Excellence
Building a foundation of continuous improvement
Understand costs &
organizational complexity
Identify the state of
operations in your
organization
Prepare for the future with
Predictive Analytics
OEHA Building Blocks Goal: An Operationally Excellence Hospital
» This holistic approach will drive improvement in operational,
clinical, and financial results throughout the hospital
» Operational Excellence strives for perfection, which is a required
trait for hospitals that will thrive during the changing reimbursement
structures
» The healthcare industry is one of
the most complex, and the
associated costs must be examined
and understood
» OEHA delivers the solution to
provide superior care and patient
outcomes, while directly
addressing financial components
of the organization

5. Operational Excellence (OpEx) is “doing the right things right”
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Core values that can lead hospitals into a sustainable future
Seek perfection
Assure quality at the source
Flow & pull value
Create constancy of purpose
Create value for the customer
Focus on the processes
Embrace scientific thinking
Think systemically
Respect every individual
Lead with humility
Operational Excellence is a culture of leadership, collaboration, & problem solving that drives
continuous improvement throughout the hospital, while delivering value & quality care to patients.

6. Operational Excellence in healthcare: Improve clinical, operational &
financial outcomes
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Clinical Operational Financial
Operational Excellence in Healthcare
Gauge Control
Meaningful Cost Allocation
High Patient Satisfaction
Minimal Measurement
Variation
Functioning
Complexity Control
Unified Management &
Control System
Continuous Improvement Culture
First Class
Quality Management
Capable Knowledge
Management
(Self)-Leadership
of Workforce
Low Lead Times
Short Waiting Times
Meaningful Key
Performance Indicators
Standardized High Excellence
Discharge Process
Healthy Revenue Stream
Clear Cost Understanding
Low Bad Complexity Costs
Minimal Number
of Defects
Data Driven
Diagnosis
World Class Resource
Management
Functioning
Rounding Scheduling
Modern Data Management
Clearly communicated
Vision & Strategy
Low Readmission
Rates
Engaged Workforce
No Organizational
& Cultural Silos
Clear Understanding
of your Non-Value vs.
Value-Add Activities
Communication
Strategy& Structure
Effective
Improvement
Program
Competitive
Workforce
Compensation
& Benefits
Baselined Processes
Statistic Process Control
for Key Parameters
Clear Roles &
Responsibilities
Three pillars of OpEx

7. 7
Operational Excellence requires a holistic approach to be successful - Look
at all the areas and links to identify your opportunities for improvement

8. An alliance built on collaboration between members with proven success,
experience, and methodologies
OEHA is an innovative network dedicated to shaping future healthcare operations
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» OEHA is a membership based network of
hospitals, hospital systems & other
healthcare organizations
» Vision: OEHA strives for the best quality of
patient care by optimizing healthcare
operations & increasing workforce
satisfaction & patient experience, which will
improve the profitability of all member
organizations
» Will promote the exchange of knowledge
in operations & healthcare to shape
operational excellence in the industry
» Charter membership has been
established
OEHA Charter Members
Guiding Principle: Operations are the foundation for superior financial and clinical outcomes in all
healthcare organizations

9. Kienbaum’s Expertise
» An integrated consulting concept with
interdisciplinary teams
» A focus on results with proven experience
in the field
» Established transformation & change model
» Top expertise in executive search, human
capital services, communication,
organization & process consulting
» Reconciling digital and analogue processes
& business models (work 4.0)
» Practice-oriented innovation processes
(dedicated research institute)
Kienbaum: A top consultancy for Leadership,
People & Organizations for over 70 years
Kienbaum Management Consultants Transformation Model
Structures &
Management
Processes &
Systems
Competences &
Culture
Strategy &
Direction
Levers
Effective,
innovative,
sustainable
Results
Competent,
diverse, motivated,
engaged, optimistic
People
Success Factors
Agile, learning,
efficient, effective,
competitive,
connected, digital
Organization
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Transformation Model
In all of our projects, we focus on people and organizations as the key factor for the sustainable
success of our members

10. Wilson Perumal & Company is helping companies
win in the age of complexity
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For many companies, complexity is a defining issue
Complexity Costing as the cost allocating tool Complexity Costs
» Wilson Perumal & Company is the authority on complexity, with deep
client experience and unique methodologies and approaches
» The healthcare industry is one of the most complex industries, facing
obstacles such as process complexity and organizational misalignment
» WP&C helps organizations identify, quantify, and take action on the
complexity of their business
» This information is used to build the capabilities to manage complexity on
an ongoing basis
» Reduce complexity where the market allows, and reduce the cost of
complexity, where it doesn't
Complexity management will optimize services and processes in order to deliver care to patients in
the most cost effective manner, while maintaining patient satisfaction

11. Battelle: Science for a healthier human race
Battelle Health and Analytics
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» The world’s largest independent research
and development organization, applying
cutting-edge research methods to some of
today’s most complex healthcare challenges
» The trusted research provider for NIH, CDC,
FDA, and many other public and private
entities
» Leading experts in data analytics, public
health, pharmacology, and other related
disciplines for a multidisciplinary approach
to healthcare and public research
» An objective source for accurate, trusted data
to guide healthcare providers and
organizations
Technical
On-site
Professional
Services
Public Health
Support
Services
Behavioral
Health Services
Public Health
Tobacco
Research
Medical
Readiness &
Response
Repository
Management
Healthcare
Quality
Improvement
Healthcare
Analytics
Who is Battelle?

12. Battelle Healthcare Quality Improvement: Improving
healthcare quality and patient outcomes
WayFinder Q.I. Dashboard – Analyze the cost and risk of care delivery
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» Cloud-based quality improvement analytical tool that allows hospitals to:
» The RiskFinder tool has the unique capability to assess risks associated
with specific care delivery processes
» By using tool, providers are able to assess their current offerings and
procedures in parallel with their understanding of complexity to appropriately
assess the cost of care and associated value
» Predictive analytics in healthcare will benefit patient outcomes, and
minimize risk for physicians and providers
» Analyze cost trends
» Determine industry benchmarks
» Predict clinical performance
» Compare performance to peers
WayFinder provides the clinical and financial insight to select focus areas for improvement based on
critical cost drivers and expected return
WayFinder Q.I. Dashboard

13. Collaboration is essential for maximizing success – We believe in
connecting organizations and people to make a difference
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14. OpEx hospitals will achieve success as a result integrating proven tools in
a holistic approach to organizational transformation
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Outcomes of sustainable operational excellence
Control processes and inputs
that affect clinical and financial
outcomes
Understand the voice of the
patient and increase satisfaction
Share crucial knowledge
through case examples and best
practices
Communicate your
commitment to delivering quality
care and value to patients
Utilize data sources to
appropriately identify improvement
opportunities
Benchmark performance and
address areas with proven tools
and methodologies
Collaborate to identify similarities
and address critical issues
throughout the industry
Adapt quickly to industry trends
by learning through membership
connections and peer verification

15. The vision: A powerful network of organizations that will thrive in today’s
challenging environment
Collaboration between OEHA members
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» The challenges faced today present
opportunities for the healthcare
organizations that tackle them properly
» OEHA provides an arena for all interested
organizations to share proven methods
and innovative solutions
» Members will create links across
organizational boundaries that have
hindered knowledge transfer
» Success will be achieved in operational,
clinical, and financial results
Hospitals &
Providers
Healthcare
Organization
Hospital
Systems
Charter
Members
Network for Continue SuccessBenefits of the Alliance
Knowledge transfer is critical in order to excel in today’s fast paced environment. Proven tools and
experience from across industries will help members thrive.

16. OpEx Snap Shot: The starting block to your hospitals journey towards
operational excellence
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Operational Excellence Snap Shot process
» Online self-assessments for pre-visit
evaluation and first benchmarking
» Focus interviews with key personnel
» Utilization of organizational evaluation tools
& checklists
» Based on key characteristics of operational
excellence, strategy, culture, systems and
processes
» Happens annually as part of membership
so hospitals can benchmark against
themselves over time and other members
2 weeks after
site visit
Step 3:
Report &
Discussion
Action plan
Benchmark
results
OpEx
Improvement
Roadmap
Step 1:
Web-based self
assessment
10 -30 key
personnel on a
standardized
20-30 min
questionnaire +
5 open- ended
questions
2 weeks prior to
Site Visit
Step 2:
Site Visit & Data
Collection
2 days, 2
managers
Tool based
standardized
hospital site
visit. SIS level,
assessment
pyramids,
interviews
Results are presented & the improvement
roadmap discussed with the member

17. Operational Excellence Healthcare Alliance
Contacts
Eric M. Lavelle
Chief Executive Officer
Phone: +1 843 804 0020
Fax: +1 213 805 5337
Mobile: +1 843 804 0020
Eric.Lavelle@kienbaum.com
Martin Neuhold
Chairman of the Board
Phone: +49 211 965 9263
Fax: +49 211 965 9335
Mobile: +49 172 620 7148
Martin.Neuhold@kienbaum.de
Contacts
Operational Excellence Healthcare Alliance
Kienbaum Consultants Inc.
2300 Lakeview Parkway, Suite 700
Alpharetta, GA 30009
USA
Address
www.kienbaum.com
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