Date: e: Thursday, February 20, 2014 Ho Hosted ed by: : HNHB - PowerPoint PPT Presentation

Date: e: Thursday, February 20, 2014 Ho Hosted ed by: : HNHB Community Leaders Council

 This workshop is hosted by the HNHB Community Leaders Council  Council is co-chaired by Brother Richard MacPhee, Executive Director, Good Shepherd, and Melody Miles, CEO, HNHB CCAC  We’re pleased to have Nathan Doidge and Matthew Ramenaden from Health Quality Ontario with us today to lead us in a workshop regarding Balanced Scorecards

Beth h Beader der, Execut cutive ive Directo ctor, r, North h Hamilton n Community unity Healt lth h Cent ntre re Mary Burnett, nett, CEO, , Dementia ia Alliance nce Mary Lee e Bull, Regi gion onal l Independent endent Living ng Manage ager, r, Ontario ario March ch of Dimes Jan Narduzzi uzzi, Executi cutive ve Directo tor, r, Brain Injur ury y Servi vices ces Tim Siemens mens, Executi ecutive ve Director, tor,Tab Tabor or Manor Marg Pattillo llo, Adminis istrat rator or, Creek Way Village ge Brother her Richard ard MacPhe hee, Execu cutive ive Directo ctor, r, Good Sheph pherd rd Steve Sherrer, CEO, AbleLiving Services Inc.

Donna a Cripps, CEO, HNHB B LHIN Melody y Miles, CEO, HNHB B CCAC Terry ry McCart rthy hy, CEO, Hamilton n Family y Health th Team am Marce cel Castonguay onguay, Executi cutive ve Directo tor, r, Centr ntre de santé té communauta unautair ire Hamilton/N n/Niag agar ara Pamela la Blackwell kwell, Executi cutive ve Directo tor, r, McNal ally ly House Lori Santel telli li, Executi cutive ve Directo tor, r, Adult t Recre reati tion on Thera rapy py Centre tre (ARTC RTC) Trish h Balardo, Execu cutive ive Directo ctor, r, Seni niors rs Activati ation on Maintenance tenance Program am Karen n Candy, y, Executi cutive ve Directo ctor, The Carpenter nter Hospice ce

Balanced Scorecard Workshop Nathan Doidge & Matthew Ramenaden February 20, 2014 www.HQOntario.ca

Workshop Outline Module Time Introduction 09:00 - 09:15 Theory Burst #1: Introduction to Balanced Scorecards 09:15 - 09:30 Practice: Group Exercise 09:30 - 10:00 Practice: Group Discussion 10:00 - 10:15 Coffee break 10:15 - 10:30 Theory Burst #2: Balanced Scorecards in Healthcare 10:30 - 10:45 Practice: Group Exercise & Group Discussion 10:45 - 11:15 Practice: Peer Discussion 11:15 - 11:45 Wrap-up 11:45 - 12:00 www.HQOntario.ca 7

About Health Quality Ontario • HQO works in partnership with Ontario’s health care system to support a better experience of care, better outcomes for Ontarians and better value for money. • HQO’s legislated mandate under the Excellent Care for All Act , 2010 is to: – monitor and report to the people of Ontario on the quality of their health care system – support continuous quality improvement, and – promote health care that is supported by the best available scientific evidence • HQO is an arms-length agency of the Ontario government. Visit www.hqontario.ca for more information. www.HQOntario.ca 8

Balanced Scorecard Workshop Theory Burst #1: Introduction to Balanced Scorecards (BSCs) www.HQOntario.ca

Learning Objectives: Module 1 At the end of the module, participants will be able to answer: • What problem are Balanced Scorecards trying to solve? • What are the benefits of using Balanced Scorecards? • What are SMART objectives? • What are key considerations when selecting measures? www.HQOntario.ca 10

Scenario • It’s 1980 and you are the CEO of Smith Corona, one of the largest typewriter manufacturers in the world • The organization is celebrating its 94 th year in business and once again has healthy profits • All of your performance reports look great: revenues are up & expenses are under control • Based on these reports, your Board tells you to grow: Open 10 new factories in the next 5 years! www.HQOntario.ca 11

Background • Historically, performance Financial reporting was focused on Health financial measures alone • General assumption: How an Unhappy Supply Clients Shortages organization performed in the past is how they’ll perform in Staff the future Antiquated Attrition Technology • Problem: Quickly changing technology and business Poorly environments make the past a Trained Employees very poor predictor of the future www.HQOntario.ca 12

A Balanced View • Balanced Scorecards (BSC) allow companies to track Financial Customer financial results and • How do we • How satisfied simultaneously monitor progress look to are our in building capabilities needed shareholders? customers? for future growth • BSCs produce a balance between: Internal Learning & – How the organization sees Process Growth itself and how others see it • How efficient • How can we – Short run and long run are we? continue to improve? – Internal and external – Leading and lagging www.HQOntario.ca 13

Scorecard Illustration: Telephone Company Objective Measure(s) Target Initiatives What are we specifically trying to How will be measure our progress in What target value is needed What are we doing to reach our achieve in each perspective? achieving the objective? to meet our objective? target? • Proportion of budget allocated to • Switch telecom service to Reduce “overhead” expenses Financial < 10% administrative expenses less expensive provider • Advertising campaign in • # of customers Expand market share 7,000,000 Northern Ontario • Customer satisfaction survey • Customer service training Customer Improve customer satisfaction 4.5 (out of 5) scores for all employees • Number of customer complaint • Operational service Reduce customer complaints < 10/week letters management reporting • Reduce helpdesk call answer Add additional customer Processes • # of rings before answering < 3 Internal times service representatives • # of days customer waits for • Develop “quick response” Improve service activation < 2 turnaround time new service activation teams • Develop employee health Learning & • Staff turnover rate Improve staff retention < 5% Growth & wellness program • Deploy laptops to staff • # of pages printed Enable paperless offices < 10,000 / month • Prevent email printing www.HQOntario.ca 14

Be SMART! Are these SMART objectives S pecific for a hospital? 1. Be a leader in cardiac care M easurable 2. Improve patient satisfaction scores by 5% 3. Provide the best coffee in the A ttainable world! 4. Reduce childhood cancer rates in Ontario by 10% R elevant 5. Work in collaboration with key partners 6. Reduce annual operating T ime Bound expenses by 2% www.HQOntario.ca 15

Selecting Measures • Ultimate Goal: Measures perfectly indicate the degree of progress made toward achieving the corresponding objective • Reality: – Perfect measures rarely exist! – Therefore, practical goal is to come as close as possible • Considerations: – Leading vs lagging measures – Data quality, availability, cost & reporting turnaround time – Accountabilities – Proxies Practice choosing measures for these objectives: 1. Be a leader in cardiac care 2. Improve patient satisfaction scores by 5% www.HQOntario.ca 16

Setting Targets • SMART objectives suggest what the target should be • Consider “stretch” targets that are demanding but attainable • Targets can be set based on: – Your own historical performance – Peer performance – Recognized standards or benchmark • Think how a patient would set your targets • To improve buy-in, discuss targets with your staff rather than simply announcing them www.HQOntario.ca 17

Learning Objectives: Module 1 Can you answer: • What problem are Balanced Scorecards trying to solve? • What are the benefits of using Balanced Scorecards? • What do SMART objectives look like? • What should you consider when selecting measures? www.HQOntario.ca 18

End of Theory Burst #1 www.HQOntario.ca

Group Exercise: Module 1 • Glance over the case study, 10 minutes • Divide into groups and design a scorecard by filling in the worksheet, 20 minutes • Within your group, discuss the questions, 15 minutes www.HQOntario.ca 20

Group Discussion 1) Given the objectives and measures you’ve chosen, now describe the strategy you’re trying to achieve 2) What story can you tell about how the objectives and measures work together to achieve your strategy? 3) Reflect on the four perspectives of the balanced scorecard. Which one perspective will be most important: – Over the next one year? – Over the next five years? www.HQOntario.ca 21

Balanced Scorecard Workshop Theory Burst #2: Balanced Scorecards in Healthcare www.HQOntario.ca

Learning Objectives: Module 2 At the end of the module, participants will be able to answer: • How are Balanced Scorecards used today? • What are strategy maps and why are they used? • How are Balanced Scorecards used in healthcare settings? www.HQOntario.ca 23