Tools to Achieve Performance Excellence

1. Tools to Achieve Performance Excellence

2. Dr. Kevin Anderson, Senior Consultant at Accelare, Kevin.anderson@accelare.com Your toolbox is full: Now what?

3. Your tool box is full: now what? • Objective: • You have dozens of process tools in your toolkit • The question now is “how” to approach your work • Our Topics: • Get to the heart of the problem – Gemba! • Change the culture, Do not say the word “culture” • Our process for selecting tools to impact outcome • Good News: Interaction

4. Accelare: strategy to execution • Accelare Turns Strategy Into Action: Accelare has a simple method for leveraging capability models to deliver upon strategy and projects of any kind. We work with C-Level, Operations, Talent and Training. • The Strategy to Execution (S2E) process involves identifying the capabilities for value creation.We then mobilize to take action based on where the capability model indicates focus is needed.

5. Q1: About my ability to witness the source of the problem first hand • Gemba: “The Real Place”

6. Gemba: getting below the iceberg Rework Inaccurate process outputs Technology Downtime Lower Sales Policy changes Visible to Leadership Customer Cancellations Product sent late Opportunity cost of sales Audits Visible to Front-line Resources Vendor confusion Cycle times long Inefficient policies Process control Brand reputation Lowered customer loyalty Poor product availability Risk Higher cost to customers Ineffective Inspections Average industry COPQ = 15% - 25% of revenue Source: Deming Center at Columbia University

7. Capability Model = identification of key areas for improvement, value creation (and tools) 1.1 Develop & Manage Master Offering Portfolio 1.2 Analyze Environment 1.3 Conduct Segmentation 1.4 Identify Constituent Unmet Needs & Expectations 1.5 Develop Offering Strategy 1.6 Define and Develop New Offering and Enhancements 1.7 Offering Development Life Cycle (Planned Variety) 2.1 Develop, Maintain Provider Network 2.2 Segment Providers 2.3 Develop Engagement Strategy 2.4 Develop TREND management initiatives 2.5 Develop/Implement Performance Incentives 2.6 Develop Contract Models 2.7 Contract w/Providers 2.8 Enroll, Set Up, Credential 2.9 Manage Provider Relationships 2.10 Manage Regulatory Compliance 2.11 Manage Provider Performance/Cont 2.12 Manage Provider/Network Experience 3.1 Determine Market Segment Strategy 3.2 Manage Distribution Channels 3.3 Manage Intermediary Experience 3.4 Develop 3rd Party Strategy 3.5 Prospect Customers 3.6 Advertise and Market Brand & Solutions 3.7 Respond to Presale Inquiries and Questions 3.8 Determine Customer Needs and Offering Options 3.9 Underwrite and Determine Rates/Pricing 3.10 Determine Quality Measures and Targets 3.11 Develop Cust. Value Proposition/Present Proposal 3.12 Negotiate and Close Accounts 3.13 Set up Account 3.14 Configure Account Contract 3.15 Train Plan Administrators 3.16 Educate, Enroll & Profile Members 3.17 Issue Customer Materials 4.1 Capture Data 4.2 Analyze Data for Future Program Planning 4.3 Analyze Data Retrospective Program Impact 4.4 Report Results and Future Plans 4.5 Review/Refine Offerings Based on Analysis 4.6 Identify Populations 4.7 Engage Members 4.8 Interact/Intervene with Members 4.9 Oversee End-to-End Process Quality 4.10 Delegate Process Components to Providers 5.1 Transition Account Relationship 5.2 Implement Lifestyle/Wellness Offerings 5.3 Define reporting needs & metrics 5.4 Deliver Self-Service Capability Needs 5.5 Provide Reporting and Analysis 5.6 Provide Reporting and Analysis 5.7 Manage Loyalty and Renewals 5.8 Renew Business 5.9 Manage 360 Degree View of the Customer 6.1 Service Accounts 6.2 Service Members 6.3 Service Providers 6.4 Adjudicate Claims/HIPAA Transactions 6.5 Invoice Accounts 6.6 Manage Account Receivable 6.7 Prepare Account Financial Reports 6.8 Self Service 6.9 Service Analytics and Feedback 6.10 Profiling and Routing Develop & Manage Offerings Service Accts, Membs & Pvdr’s Manage Provider Engagement Awareness to Card Health and Wellness Management Manage Customer Relationships 6 4 2 3 1 5

8. Q2: About how we change the culture of the organization without using the word “culture” TheFirst RuleofFight Club http://www.bing.com/images/search?q=fight+club+movie+poster&id=DDE381C1BA22472E712683587F39983A641C7EA8&FORM=IQFRBA#view=detail&id=0CCF047E1A1CD5A07211A3CB210F146B9721EEAB&selectedIndex=1

9. Organizational culture definition Organizational Culture is… • “The set of beliefs, values, and norms, together with symbols like dramatized events and personalities, that represent an organization's unique character and provide the context for action in it and by it.” Gareth Morgan • As a Result Organizational Culture: • Is about fundamental traditions, authority, routines and structure • Profoundly impacts attitudes, actions and outcomes • Is unique and can be shaped for the benefit of all

10. Culture Initiatives = Bumper Stickers I am a slogan, I willchange your life! To REALLY Influence culture: Ethos = Trust Pathos = Emotions Logos = Logic

11. Q3: Our process for selecting tools which drive the desired outcomes? • Focus on the critical few tools that work

12. Checklist – tools should be… • Effective in practice (Pilot them!) • Fits the organization • Validated to an extent • Get enough training [Be proficient] • Resonate with practitioner • Other….?

13. Discussion at your tables example • Sample Discussion: • Praise: Tie up various concepts into a nice bow • Concern: Exhaustion!

14. Table discussions – 10 minutes