The shift to value-based contracting and pay-for-performance is creating the need for all stakeholders in health and human service organizations to create a new business model for future sustainability (see The Business Model Transition To Value-Based Care, from yesterday). This new business model requires an executive team that is tuned into excellence in performance management. Many organizations are creating the metrics-based management tools they need. But the question remains – are they ready to change their organizations based on their performance data? This is the essence of a performance-driven culture.

What are the elements of organizations with a performance-driven culture? See how your organization stacks up…

1. Visible metrics – both customer-centric and organizational – and an automated process for reporting them routinely
2. Actionable insights based on rich data and identification of the actions needed to improve performance
3. Clear team member accountability for specific performance metrics
4. Real-time performance feedback at all levels of the organization
5. Targeted coaching based on performance data with individualized goals to improve team member performance
6. Recognition of great performers
7. Team celebrations of great performance
8. An interactive strategy and budgeting process
9. Nimble and data-driven service line reengineering and development

This list is the framework of a good assessment of (and plan to achieve) the performance-driven culture needed for performance excellence. But I do have a short hand “test” when I’m getting to know a new organization and to see how ready they are for a competitive market place. I ask these six questions:

1. Is it clear what specific team member is accountable for each critical performance metric – revenue, program profitability, etc.?
2. Are your C-Suite incessantly monitoring customer performance data – both payer and consumer?
3. Does customer experience drive your executive decisionmaking?
4. Does performance measures change staffing – qualitatively and quantitatively?
5. Are team members terminated because they don’t perform?
6. Are team members rewarded because they have superior performance?

So how does your organization score? If you need to dive a little deeper in some areas, check out my presentation, Are You Really Ready For Value-Based Payment?, from yesterday’s institute, or these resources the OPEN MINDS Industry Library:

1. Culture Will Trump Strategy Every Time
2. Creating A Culture Where Metrics-Based Management Can Succeed
3. Two Uses Of Metrics-Based Management – Strategy & Business Process Management
4. Optimizing Your Operations With Analytics, Performance Measurement & Metrics-Based Management
5. Integrating Predictive Analytics Into Clinical Practice For Improved Outcomes & Financial Performance
6. Performance Measurement & Value-Based Payment In Medicare & Medicaid: An Executive Update
7. The Continuum Of Change Management
8. How To Tackle Performance-Based Compensation

And for each more, check out our archived coverage of The 2016 OPEN MINDS Performance Management Institute on Twitter @openmindscircle – #OMPerformance and join us this June in New Orleans for my keynote session at The 2016 Strategy & Innovation Institute, “Is Your Organization Innovation-Ready? How To Transform Innovation Into Strategic Advantage.”