Transcript Comprehensive Business Continuity Management

What the CEO Expects of IT Strategy
February 10, 2003
Reginald M. Ballantyne III, FACHE
1997 Chairman of the Board, American Hospital Association
Corporate Officer and Senior Vice President, Market Strategy
and Government Affairs, Vanguard Health Systems, Inc.
Objectives…
Learn, Review, Gain insight…
 CEO perspective on the key ingredients for
enterprise success – including the role of IT
 IT’s location on the radar screen of the CEO and how to assure that it does not become a
“hostile target”
 How to align IT with enterprise strategy
IT Leadership Priorities*
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Implement POC Clinical Decision
Support
Implement Speech Recognition
Implement Enterprise Master Patient
Index
Replace/Upgrade Ambulatory
System
Implement Supply Chain
Management System
Process/Workflow Redesign
Implement Wireless System
Replace/Upgrade Inpatient
Financial/Administrative Information
System
Implement ERP System
Personnel Training (System Use)
* 13th Annual HIMSS Leadership Survey
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Integrated Systems Environment
Implement Computer-Based
Patient Record System
Improve IS Department Cost
Effectiveness
Implement EDI (HIPAA
Compliance)
Deploy Web Technology
Upgrade Network Infrastructure
Replace/Upgrade Inpatient
Clinical Information System
Reduce Medical Errors/Promote
Patient Safety
Upgrade Security (HIPAA
Compliance)
Implement Telemedicine System
CEO Priorities*…
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Personnel Shortages
Reimbursement
Malpractice Insurance
Governmental Mandates
Physician – Hospital Relations
Capacity
Care for the Uninsured
Patient Safety
Technology
Patient Satisfaction
* ACHE Hospital CEO Survey, November 2002
From the mind of the CEO . . .
Deliver me a
“single version of the
truth”
Deliver Me a “Single Version of
the Truth”
 Data integration, integrity and reliability
 Top-down and bottom-up navigation across
performance management applications and
systems
 A seamless data access model
– delivering a “single version
TRUTH
of the truth” encompassing
clinical, operational, financial,
quality management, and legal
processes and business objectives
Don’t Sell Me Another Fad!
The tendency to follow fads is a
significant pitfall for IT leadership
Results in:
• Wasted resources
• Failure to support business objectives
• Damaged credibility
Don’t Sell Me Another Fad!
 Develop the courage to manage your operation
 Focus on the real issues and unique needs and
challenges of your organization
Learn from the Successes of Others!
Consider these examples…
… and remember, the strange mind of
the CEO …
Learn from the Successes of Others!
 Transportation
• Reduction of travel agent costs to airlines
• Efficiency of equipment scheduling for airlines,
railroads, trucking
 Communications
• Reduced costs by substituting information
technology for labor (e.g., operators)
 Banking
• From tellers to ATMs
• Online banking
Learn from the Successes of Other
Industries!
 Other industries measure (ta dah!!):
increased cash, reduced expenses and
better use of capital to evaluate IT projects
 Healthcare should use all of these plus
better care quality to measure (ta dah!!) IT
projects
Are We Doing the Right Things in IT?
 Many CEOs have not seen the operational
benefits or financial returns in IT
• 50 percent of projects finish late or over budget, or
they under-deliver on their promised value(1)
• 85 percent of IT departments or companies fail to
meet strategic business needs of the hospital or
system(2)
(1)
(2)
Financial Executives Institute, Morristown, NJ and 1999 Annual Joint Study, Computer Sciences Corporation
Howard Rubin’s Worldwide IT Trends and Benchmark Report
Are We Doing the Right Things in IT?
 When evaluating new IT initiatives. . .
• Define the desired outcomes precisely
• Identify all viable alternatives
• Establish a strong business case that is aligned with
corporate/organization objectives
• Define the impact on business operations
• Monitor and report on performance benchmarks
Avoid the Clichés and Jargon!
CEOs do not necessarily
know as much as people
assume they know…
Avoid the Clichés and Jargon!
 Consider the “CEO-lag” on your understanding of
technology
 “Education without embarrassment” - develop executive
primers and other resources on IT issues and
vocabulary
 Provide CEO-focused briefings (YES!)
 Describe analyses in plain English and avoid
professional jargon
 Communicate in practical and specific terms
• Is it “Patient Safety” or “Preventing Medication Errors”?
• Provide examples
The Top IT Priority in
CY 2003 – CY 2005
Alignment
Ask Yourself These Key Questions
How is your Information Systems Strategic
Plan supporting execution of current
organizational business strategies and
initiatives?
Ask Yourself These Key Questions
How is your current Information Systems
environment supporting the key processes of
your organization? Consider:
 Clinical processes (managing care at the bedside)
 Medical management (evidence-based medicine)
 Patient management (service, communication, access)
 Outcomes and quality management (including medication
error reduction)
 Financial management (revenue cycle)
Ask Yourself These Key Questions
How are your Information Systems projects
prioritized?
How does your organization’s Information Systems
environment support the individual?
How is your IS infrastructure preparing to support
your organization’s new initiatives?
Ask Yourself These Key Questions
How is your organization benefiting from recent and
past investments in Information Systems?
How is your organization exploiting the Web for
consumer service, operational and financial
competitive advantages?
The Top IT Priority in
CY 2003 – CY 2005
Aligning your IT Strategy with
the Enterprise Strategy
Formulate Your IT Strategies in
Three-Part Harmony…
 Establish a Realistic Vision
 Develop an Effective Plan
 Activate the Plan
Evolve from a support function to a
strategic contributor in your organization. . .
The IT Vision
 Picture of the future
 “Stretch. . . But get real”
 Reflects environment
 Establishes timeframe
 Measurable
 Compelling/motivating
 Supports enterprise vision
The IT Plan
Key Tenets. . .
 Planning process must include education, active
user participation and significant user and
management concurrence
 Must reflect your organization’s business strategy
and address targeted areas for improvement
 Must strike balance among strategic, tactical and
operational considerations
The IT Plan
Must…
 Provide complete inventory and analysis of current
information systems environment
 Summarize IS requirements, issues, user
satisfaction and unmet needs
 Support compliance with regulatory and
accrediting demands
 Include consideration of choices that maximize
existing IS investments
The IT Plan
Should. . .
 Improve patient/family satisfaction
 Facilitate integration of care delivery
process
 Strengthen physician relations and
recruitment
 Support research initiatives and provide
foundation for evidence based medicine
The IT Plan
Should…
 Improve charge capture
(financial survival)
 Enhance employee satisfaction
(recruitment, on-line HR system)
 Reduce costs
 Negate enormous IT investments
and overcome limitations of “closed systems”
Fewer than 10 percent of
effectively formulated
strategies are successfully
implemented*
* Strategy Focused Organization; Kaplan and Norton
Implementation success is not
restricted by technology. . .
Failure to recognize economics
and culture impedes success
Plan Activation
 Communicate the Strategic Plan to all
stakeholders
 Develop a Tactical Plan
• Define programs and projects – including value,
operations impact, and potential benefit
• Prioritize projects with full descriptions:
 scope, impact on strategic business initiatives
 estimated resource and capital requirements
 project dependencies, estimated implementation timeframes
 expected results
Plan Activation
 Outline an IS organizational model that
identifies staffing needs, skill mix requirements,
performance measurements, etc.
 Establish program management responsibility
(e.g., PMO) to coordinate activities (e.g., ontime delivery, within budget, promised benefits)
 Seek and implement process change (e.g.,
work-flow analysis and user-side
implementation)
Plan Activation
 Explore Sourcing Options
• Facilitates best practice and critical analysis of
where IT can create greatest value to the
organization
• Simplifies management agenda and enables IT
leadership to be available for strategic role
• Expands resource alternatives
Benefits of Effective Plan Activation
 Business strategies, initiatives and
processes are supported
 Targeted areas of improvement are
addressed
 Care providers work more
collaboratively and efficiently
 Key data is available at the point of
decision
 Barriers to optimal care delivery and
operational performance are
removed
Benefits of Effective Plan Activation
 Costs and resource consumption are
lower; quality is higher
 Stakeholders (patients, providers,
payers and employees) are satisfied
 IT leadership is strategically oriented
and focused on high value areas
 Best practice model in all phases of
IT delivery is promoted
SUCCESS!
 IS is focused on areas of highest real value to
healthcare organization
 Visibility is raised in recognition of strategic
impact
 Transformation from “support manager/do-er” to
executive leadership “where would we be without
(your name)” is complete!