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…
- Visible metrics – both customer-centric and organizational – and an automated process for reporting them routinely
- Actionable insights based on rich data and identification of the actions needed to improve performance
- Clear team member accountability for specific performance metrics
- Real-time performance feedback at all levels of the organization
- Targeted coaching based on performance data with individualized goals to improve team member performance
- Recognition of great performers
- Team celebrations of great performance
- An interactive strategy and budgeting process
- 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:
- Is it clear what specific team member is accountable for each critical performance metric – revenue, program profitability, etc.?
- Are your C-Suite incessantly monitoring customer performance data – both payer and consumer?
- Does customer experience drive your executive decisionmaking?
- Does performance measures change staffing – qualitatively and quantitatively?
- Are team members terminated because they don’t perform?
- 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:
- Culture Will Trump Strategy Every Time
- Creating A Culture Where Metrics-Based Management Can Succeed
- Two Uses Of Metrics-Based Management – Strategy & Business Process Management
- Optimizing Your Operations With Analytics, Performance Measurement & Metrics-Based Management
- Integrating Predictive Analytics Into Clinical Practice For Improved Outcomes & Financial Performance
- Performance Measurement & Value-Based Payment In Medicare & Medicaid: An Executive Update
- The Continuum Of Change Management
- 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.”