Hello from sunny Florida, where today we started off The 2015 OPEN MINDS Performance Management Institute with a pre-institute seminar – Performance Measurement & Management For Successful Strategy Implementation – hosted by my colleague and OPEN MINDS Senior Associate, Steve Ramsland. Steve started off the seminar with a theme that I think will be important over the next two days at the institute – There are very few places in the health and human service industry where “performance” doesn’t matter – but the challenge is identifying how (and why) performance matters for your organization.
As OPEN MINDS‘ CEO Monica E. Oss is fond of saying, “performance is not something that matters in a vacuum. You need to understand the context.” This afternoon, Steve put this question to the attendees: “what is driving how you define performance for your organization?” Here are some of the great responses that are guiding today’s health and human service organizations:
Meeting the obligations of “the contract” – “Proving” yourself in the eyes of payers and care management organizations is a big one for many organizations. Organizations are preparing for contracts that include pay-for-performance arraignments, gainsharing, risk-based contracts, case rates, episode-based payment, bundled payments, social-impact bonds, and more. This means thinking about performance metrics in terms of meeting the requirements of payers. For more, check out these resources from the OPEN MINDS Industry Library:
- Beyond FFS
- Medicare Bets Big On Pay-For-Value
- Beyond FFS: Like It Or Not, Performance-Based Reimbursement Is Your Future Session 3:Performance-Based & Risk-Based Reimbursement
Spending money “the way it should be spent” – Basic organizational administration, and specifically managing unit costs and performance, is a big reason organizations should adopt a performance mindset. For the whole to be greater than the parts, and for organizations to meet the performance requirements of many of the payment arraignments above, detailed tracking of unit performance is mandatory. For more, check out these resources from the OPEN MINDS Industry Library:
- ‘Competitive Advantage’ Drives Your Operational Performance Metrics
- Tools For Managing Your Unit Costs In A Market With Shifting Reimbursement
- Reengineering Your Organization to Manage Unit Cost: Translating Activity-Based Cost Management Into A Model You Can Use
Recognizing staff performance – This means both recognizing the employees that are doing a good job and rewarding them, and for those employees who aren’t getting the job done, making changes to bring their performance in line with the organization’s goals. There is no better way to keep your organization moving forward, than to track staff productivity and then manage to the metrics. For more, check out these resources from the OPEN MINDS Industry Library:
- Performance, Productivity & Compensation: How To Maximize Staff Performance In An Era Of Change
- Pay For The Performance You Want
- Enhance Productivity!
Achieving both cost and quality – For many organizations, there are a limited number of things that can really support the financial bottom line and at the same time fulfill the mission of the organization. Performance metrics are a great way for executive teams to find where these two equally important motivations overlap, by finding what works and what is also reimbursed. For more, check out these resources from the OPEN MINDS Industry Library:
- Performance Metrics Matter
- Making The Most Of Your Performance Data With Metrics-Based Management
- Metrics-Based Managing As ‘Cause & Effect’
While the reasons “why” may be varied, understanding all of your organization’s performance goals is a big part of building a long-term strategy – and can help your organization to determine which metrics are most important. Truly understanding the connections between the many reasons for performance management is central to performing competitively, increasing quality, and reducing costs.
It’s a truism that not all “performance” can be quantified, and not all your organization’s “results” can be tracked. That said, attempting to operate without performance metrics – whether you are a provider organization, a payer, a managed care organization, or a government entity – is all but guaranteed to be a lesson in failure.
For more on developing your performance management program, and to prepare for this week’s 2015 OPEN MINDS Performance Management Institute, check out these resources from the OPEN MINDS Industry Library.
- Your Unread Book
- Better Data = Better Decisions: Using Metrics To Manage In A Competitive Environment
- Metrics-Based Management: Key Performance Indicators
- Using KPIs in Behavioral Health & Social Service Organizations: Put Management Back Into Management Information Systems
And for more as it happens, follow our live coverage at the 2015 OPEN MINDS Performance Management Institute. If you couldn’t join us in Florida, follow us on Twitter @openmindscircle with the official institute hashtag #OMPerformance; check out pictures live from the event on our Facebook page; and stay tuned for OPEN MINDS Circle briefings live from the institute all week!