Transcript Slide 1
Reengineering Reengineering is necessary when: 1. Organizational performance lags substantially behind your competitors, or you fear a business crisis (losing market share). Need improvements of 50% or more to catch up. 2. New developments, often technological advancements, change your marketplace and demand action. 3. Your competitors undertake proven innovation and you must respond. 4. You wish to establish or maintain competitive advantage. Common Focus for Hospital Reengineering 1. Patient aggregation 2. Clinical Resource Management (CRM) 3. Management Structure 4. Service decentralization 5. Downsizing layoffs 6. Skill mix changes 7. Non-core cost savings. Reengineering (work redesign) is defined as: “The fundamental rethinking and radical redesign of business processes to cause dramatic improvements in performance.” Business processes are: The activities within an organization that add value from the perspective of the customer and resolve a discontinuous, dramatic alteration of current business practices. Reengineering Projects 1. 2. 3. 4. 5. 6. 7. 8. 9. Planned layoffs Forced retirements Executive mandated changes Major facilitation (managed care) Partnerships Product line development Contracted services Computer-assisted decision making Standardized clinical protocols (clinical paths with outcome measures) 10. Decentralized decision-making. Reengineering (Work Design) Several elements of reengineering differentiate it from the current quality methodologies: 1. Reengineering requires actual renovation of at least one of an organization’s major processes as opposed to the refinement of existing processes. 2. Reengineering aims for quantum leaps of improvement as opposed to incremental, step-by-step improvements. 3. Reengineering is driven from the top of the organization and demands senior management’s continuing participation. 4. Reengineering always includes the innovative use of informative technology. Reengineering conflicts with CQI. Common Operating Principles in Reengineered Organizations • Line up organizational responsibility with core business processes. • Give organizational units responsibility for a process from beginning to end. • Greatly reduce management layers since the need for synchronization between narrowly defined functional departments and jobs is reduced. • Define individual jobs more broadly to include multiple skills and functions. • Use full-time, permanent teams (multiple people with the same responsibility) as common organizational units. Common Operating Principles in Reengineered Organizations, cont. • Push towards self-management (individual employees and/or teams) as the norm. • Use technology to make information available on an ‘anytime, anywhere’ basis. • Establish spans of control 2 to 10 times greater than in traditional organizations. • Reconfigure information to match process-related measures rather than functional/departmental indicators. • Extend the design, operation and management of business processes into supplier and customer organizations. • Focus on time-related measures as important operating indicators. PITFALLS • • • • • • • • • • Try to fix a process instead of changing it. Don’t focus on business processes. Ignore everything except process redesign. Neglect people’s values and beliefs. Be willing to settle for minor results. Place prior constraints on the definition of the problem and the scope of the change effort. Quit too early. Allow existing cultures and attitudes to prevent the effort from getting started. Try to make the change happen from the bottom up. Assign someone as “change czar” who doesn’t understand reengineering. Pitfalls, cont. • • • • • • • • • Skimp on the resources devoted to reengineering. Bury the effort in the middle or the corporate agenda. Dissipate energy across a great many change efforts. Attempt to change when the CEO is two years from retirement. Fail to distinguish reengineering from other business improvement programs. Concentrate exclusively on design. Try to make reengineering happen without making anybody unhappy. Pull back when people resist the changes. Drag the effort out. New Rules to Redesign and Improve Care Private and public health purchasers, health care organizations, clinicians and patients should work together to redesign health care processes in accordance with the following rules: 1. Care based on continuing healing relationships. Patients should receive care whenever they need it and in many forms, not just face to face visits. This rule implies that the health care system should be responsive at all times (24 hours a day, every day) and that access to care should be provided over the internet, by telephone, and by other means in addition to face to face visits. 2. Customization based on patient needs and values. The system of care should be designed to meet the most common types of needs, but have the capability to respond to individual patient choices and preferences. New Rules to Redesign and Improve Care, cont. 3. The patient as a source of control. Patients should be given the necessary information and the opportunity to exercise the degree of control they choose over the health care decisions that affect them. The health system should be able to accommodate differences in patient preferences and encourage shared decision making. 4. Shared knowledge and the free flow of information. Patients should have unfettered access to their own medical information and to clinical knowledge. Clinicians and patients should communicate effectively and share information. 5. Evidence based decision making. Patients should receive care based on the best available scientific knowledge. Care should not vary illogically from clinician to clinician or from place to place.