Measure, Monitor...and Be Flexible!

Part 3 of 3

We've talked about creating a model that lets us know where our organization is, with respect to the critical functions, so we know where we're starting from. Only then can we prioritize and aggressively seek solutions to our most critical issues. Once the model is in place, we don’t want it to sit on a shelf! Periodic (no less than monthly) status reviews must take place. Where timetables are not being met, serious dialogue must be entered into, to get things back on track. A periodic progress report to Senior Management should also be incorporated in the process.

A side, and not so incidental, benefit of the process will be the development of performance metrics to facilitate measuring progress toward the goals inherent in certain of the tasks. Again quoting from “Hospital Strategies for Effective Performance Management”, “ …performance management rests on a relatively straightforward process of monitoring core metrics to gauge how well the organization is reaching its goals and adjusting strategies accordingly. …Effective management of healthcare organizations, therefore, requires looking at more metrics and comprehending a wider scope of information than most businesses. Only by developing a deeper understanding of performance drivers can leadership address such an incredibly complex environment involving everything from clinical care and patient satisfaction to cash flow and supply chain costs.”
Finally, flexibility is crucial. As the organization's’s situation and the impact of external factors (regulatory, reimbursement, competition, etc.) evolve, priorities and timetables will shift, and must be reflected in the model.

The development of such a model is admittedly a time-consuming task, involving much collaboration. In some circumstances, it may even require external assistance – “CFO Extenders”, if you will. But the benefit of this exercise should be readily apparent. You will identify and address those areas of opportunity to strengthen your organization, focusing on the basics and positioning yourself to meaningfully attack the imperatives for future success.

Good luck, and let me know whether this discussion has proved helpful.