ACHA Innovation & Baldrige program panel slides FINAL v1 (1)

8/17/2015
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Breakthrough Healthcare
Innovation and the
Baldrige Excellence Framework
American College of Healthcare Architects / Academy of Architecture for Health
Summer Leadership Series – The Role of Innovation in Healthcare – July 18th, 2015
Mark Erath, CPA, CGMA, FACHE, FHFMA
Senior Examiner, Baldrige Performance Excellence Program
Independent Performance Excellence Consultant
Harry Hertz, PhD, FAAAS, HFACHE
Director Emeritus, Baldrige Performance Excellence Program
National Institute of Standards and Technology
Michael Pulido, SPHR
Chief Administrative Officer
Mosaic Life Care – 2009 Malcolm Baldrige National Quality Award Winner
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Results
 Change your thinking with knowledge, insights
 Empower you to use unique talents differently
 Inspire you to be an active innovation partner
Process
 Describe context of our Baldrige journey
 Explain innovation through the Baldrige lens
 Interactive discussion
Innovation and the Baldrige Excellence Framework
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Thank you, customers, for your valuable impact upon the healthcare field, patients, families and society!
 ACHA’s vision: Transform healthcare through better built environments. (You deliver unique value!)
 Unique disciplines: planning, designing, programming, integrating, managing change, executing vision
 Unique talents: knowledge, creativity, objectivity, judgment, practical science, rigor, collaboration
 Unique contributions: wisdom, perspective, possibility champions, constraint navigators, vision translators
 Unique relationships, role: trusted advisors, partners, innovators – ahead of the curve
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Form
In this period of transformational change, given that the drivers haven’t changed…
Function
How do we discern the ever-changing answers to the questions of value…
 What does it mean to really perform?
 What does it mean to be really excellent?
 What does it mean to innovate?
We have a
system that
can help you
determine
the answers.
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Strategy

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Core Values and Concepts
Systems perspective
Delivering value and results
Visionary leadership
Ethics and transparency Patient-focused excellence
Organizational learning & agility
Focus on success
Managing for innovation
Management by fact
Valuing peopleSocietal responsibility
PROCESSES RESULTS
PERFORMANCE EXCELLENCE
ROLE MODELS
What’s distinctive about
the Baldrige framework?
 A comprehensive
system to improve
performance: proven,
universal, scalable,
non-prescriptive
 A highly selective
award, with objective
criteria scoring to
distinguish the truly
excellent
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Baldrige Performance Excellence Scoring System - Category Point Values
1 Leadership 120
2 Strategy 85
3 Customers 85
4 Measurement, Analysis, &
Knowledge Management 90
5 Workforce 85
6 Operations 85
7 Results 450
Total points 1,000
Processes:
550 points
Holistic
The “how” of
innovation
processes
&
“what” of
innovation
results
integrate
across all 7
categories.
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Innovation (requires people & processes)
Making meaningful change to improve health care
services, processes, or organizational effectiveness &
create new value for stakeholders.
 Discontinuous, breakthrough change
 Transformational: new performance dimensions
 New, or new to its application
 Includes adaptations from other industries
 Supported by the performance improvement
system: not just the purview of researchers
 Integrated in daily work, organization-wide
collaboration. Learning culture; team wisdom.
 Pervasive practical relevance: ideas, organizational
structure, business model, services, work systems,
care delivery and support processes, therapies,
facility design, technology
 Complementary to, but different from,
incremental continuous improvement
1) Idea
development &
knowledge
sharing
2) Decision to
implement
3) Implement4) Evaluate
5) Learn
Systems Perspective: Managing for Innovation
Strategic
Opportunity
Identification
Agile,
Supportive
Environment
Intelligent Risk
Pursuit
(Wisdom, Will)
I = IR + SE
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Steps toward Mature Processes
Reacting to Problems (0–25%)
1
Early Systematic Approaches (30–45%)
2
Aligned Approaches (50–65%)
3
Integrated Approaches (70–100%)
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From Fighting Fires to Innovation: An Learning Analogy
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How does Baldrige distinguish an organization’s innovation excellence?
Organizational profile:
What role do suppliers, partners & collaborators play in contributing and implementing INNOVATIONS in your organization?
What KEY changes are affecting your competitive situation, including changes that create opportunities for INNOVATION
and collaboration, as appropriate?
Category 1: Leadership processes
How do your senior leaders create an environment for INNOVATION and INTELLIGENT RISK taking, achievement of your
STRATEGIC OBJECTIVES, and organizational agility?
HOW do SENIOR LEADERS create a focus on action that will improve the organization’s PERFORMANCE, achieve
INNOVATION and INTELLIGENT RISK taking, and attain its VISION?
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Category 2: Strategy Development processes
HOW does your strategy development PROCESS stimulate and incorporate INNOVATION?
Category 4: Measurement, Analysis, and Knowledge Management processes
HOW do you use findings from PERFORMANCE reviews to develop priorities for continuous improvement and opportunities
for INNOVATION? HOW do you DEPLOY these priorities and opportunities?
HOW do you manage organizational knowledge? HOW do you assemble and transfer relevant knowledge for use in your
INNOVATION and strategic planning PROCESSES?
Category 5: Workforce processes
HOW does your learning and development system support organizational PERFORMANCE improvement, organizational
change, and INNOVATION?
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Category 6: Operations processes
HOW do you manage for INNOVATION? HOW do you pursue the STRATEGIC OPPORTUNITIES that you determine are
INTELLIGENT RISKS? HOW do you make financial and other resources available to pursue these opportunities?
HOW do you discontinue pursuing opportunities at the appropriate time to enhance support for higher-priority
opportunities?
Category 7: Results
What are your current LEVELS and TRENDS in KEY MEASURES or INDICATORS of the operational PERFORMANCE of your KEY
WORK and support PROCESSES, including PRODUCTIVITY, CYCLE TIME, and other appropriate MEASURES of PROCESS
EFFECTIVENESS, efficiency, and INNOVATION?
How do these RESULTS compare with the PERFORMANCE of your competitors and other organizations with similar
PROCESSES?
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 Established by Congress in 1987 to recognize U.S. companies for their achievements in quality and
business performance and to raise awareness about the importance of quality and performance
excellence in gaining a competitive edge
 Only public-private partnership and Presidential award and education program dedicated to improving
U.S. organizations
 Malcolm Baldrige National Quality Award is the highest level of national recognition for performance
excellence that a U.S. organization can receive
 Originally included manufacturing, service, and small business organizations; education and health
care organizations added in 1998. Nonprofit organizations, including government agencies, in 2007
 To receive the Baldrige Award, an organization must have a role-model organizational management
system. The award is not given for specific products or services
Key Facts About the Baldrige Performance Excellence Program
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 From 1988 through 2014, more than 1,600 applications have been submitted for the Malcolm
Baldrige National Quality Award.
 Separately, over 11,000 applications have been submitted to allied programs administered at the
State, Regional and Local level.
 Ninety-nine organizations from a wide variety of industries have received the national award: 6.1%
of national award applications submitted resulted in award recognition.
 Six organizations received the national award twice.
 Four-hundred and nine health care organizations applied for the national award from 1999 (first
application submitted) through 2014, of which nineteen, or 4.6%, earned award recognition.
Key Facts About the Baldrige Performance Excellence Program
http://www.nist.gov/baldrige/
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Malcolm Baldrige National Quality Award Winners – Health Care Sector
2014
Hill Country Memorial (TX)
St. David’s HealthCare (TX)
2013
Sutter Davis Hospital (CA)
2012
North MS Health Services (MS)
2011
Henry Ford Health System (MI)
Schneck Medical Center (IN)
Southcentral Foundation (AK)
2010
Advocate Good Samaritan Hospital (IL)
2009
AtlantiCare (NJ)
Mosaic Life Care (MO)
2008
Poudre Valley Health System (CO)
2007
Mercy Health System (WI)
Sharp HealthCare (CA)
2006
North MS Medical Center (MS)
2005
Bronson Methodist Hospital (MI)
2004
RW Johnson Univ. Hospital Hamilton (NJ)
2003
Baptist Hospital, Inc. (FL)
Saint Luke's Health System (MO)
2002
SSM Health Care (MO)
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Lower Health Care Costs, Improved Quality
Baldrige hospitals:
• Faster five-year performance improvement than peers
• 83% more likely to be among Thomson Reuters’ 100 Top Hospitals®
• Outperformed non-Baldrige hospitals on 6 of 7 100 Top Hospitals measures
Source: Foster, D. A., and Chenoweth, J. 2011, October. Comparison of Baldrige Award Applicants and
Recipients with Peer Hospitals on a National Balanced Scorecard. Thomson Reuters.
http://www.nist.gov/baldrige/upload/baldrige-hospital-research-paper.pdf.
Demonstrated Value of the Baldrige Program in Healthcare

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Adoption of Baldrige Practices
• 100 Top Hospitals winners extensively use Baldrige practices: 80%
• Highest formal use: Teaching hospitals: nearly 70%
Source: Shook, J., and Chenoweth, J. 2012, October. 100 Top Hospitals CEO Insights:
Adoption Rates of Select Baldrige Award Practices and Processes. Truven Health Analytics.
http://www.nist.gov/baldrige/upload/100-Top-Hosp-CEO-Insights-RB-final.pdf.
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Adoption of Baldrige Criteria
By 2018, hospitals likely to…
• Use the Baldrige Criteria for improvement or assessment: 65%
• Apply for the Baldrige Award or a state-level Baldrige-based award: 41%
Source: Futurescan 2013: Healthcare Trends and Implications 2013-2018. American Hospital
Association, Society for Healthcare Strategy & Market Development.
http://www.nist.gov/baldrige/upload/Futurescan-2013-p44-2.pdf.

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Probortunity*
• The Unity between Problems and Opportunity
- Looking at Ways to Turn Problems into Opportunities
• The “Easiest” Change to Accomplish
* Gerry Sandusky, http://www.qualitydigest.com/inside/quality-insider-column/probortunities.html
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Stratovation
• The Unity between Innovation and Strategy
- Strategy: your organization’s approach to the future
- Innovation: adopting an idea, process, product, or business model that is new
- Strategy Is about Clarity in Direction; Innovation Is about Possibility
• You Need Ongoing Innovation Efforts to Feed Organizational Strategy
• A Harder Process to Implement and Sustain
Stratovation

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more than health care … life care
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https://www.mymosaiclifecare.org/
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more than health care … life care

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Mark Erath, CPA, CGMA, FACHE, FHFMA
Senior Examiner, Baldrige Performance Excellence Program
Independent Performance Excellence Consultant
mark.e.erath@gmail.com
703-673-6971
Harry Hertz, PhD, FAAAS, HFACHE
Director Emeritus, Baldrige Performance Excellence Program
National Institute of Standards and Technology
hertzhs@gmail.com
301-975-5312
Michael Pulido, SPHR
Chief Administrative Officer
Mosaic Life Care – 2009 Malcolm Baldrige National Quality Award Winner
michael.pulido@mymlc.com
816-271-7535
Interactive Discussion
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Resources:
Mosaic Life Care
• Mosaic Life Care National Institutes
Baldrige Performance Excellence Program
• Baldrige Performance Excellence Framework, other publications and self-help tools
• Malcolm Baldrige National Quality Award applicant information (application summaries)
• Participation as a Member of the Board of Examiners, or as an MBNQA Applicant

ACHA Innovation & Baldrige program panel slides FINAL v1 (1)

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