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SMG Managed Care Insider Home

Vol. 3. No. 2


March/April 2001

In This Issue...

Insider Vision: The Price of Glory - The Cost of Change: An Owner's Reflection on the Media and Managed Care by Barry Scheur

Performance Improvement: Six Steps to an Organizational-Wide Common Sense Approach





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--- The Managed Care ---
I N S I D E R

is published six times a year by
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Publisher ... Barry S. Scheur
Editor ... Ruth M. Aaron
Research ... Judith A. Jaffe

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Nancy K. Belle

©2002 By The Scheur Management

Group, Inc. All rights reserved.
Reproduction by any means of any
portion of The Managed Care Insider
without prior permission is strictly
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ISSN 1523-6110

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Performance Improvement: Six Steps to an Organizational-Wide Common Sense Approach
by Lynne A. Wolff

Healthcare in general, and managed care in particular, has been an ongoing target for consumer, provider and media dissatisfaction. Sometimes it appears the harder we try to better our industry, the further behind we fall.

There is no easy answer to this dilemma, given the many variables and barriers currently in existence, but there is a back to basics approach that is highly effective. Call it what you will: PI, QI, QM, CQI, TQM or any other acronym, it really works!

The word "quality" seems to have been reduced to nothing more than a sound bite that is universally over-utilized within organizational processes as well as in advertising and sales promotions. Everyone talks about quality but very few actually have developed the environment or focus to achieve it. The term "performance improvement" is more preferable because it combines process and people to achieve measurable and objective performance goals and outcomes. It serves as the foundation upon which an organization is able to build and continuously improve.

The brevity of this article precludes anything but an overview of the six key steps in the implementation of an effective organizational performance improvement program.

They are as follows:

Step One.
Define, communicate and believe in your company mission. All activities should be directed in the support of the fulfillment of the mission.

Step Two.
Hire only those people who have the right personal characteristics and professional competencies to consistently and effectively meet the requirements of the mission. Hiring should be based on objective criteria and processes. It doesn't work to hire someone for customer service who hates to talk to people on the phone and wouldn't recognize empathy if he/she tripped over it. Along with effective hiring and performance measurement and appraisal practices, there must be ongoing training and development designed to provide the knowledge, tools and resources to support optimal performance.

Step Three.
This is, perhaps, the most challenging step. Establish the ongoing assessment and promotion of a positive environment. In so many instances, corporate America has ceased to recognize the value and contributions of their employees. There is no sense of loyalty from or to anyone and there is the belief that everyone is replaceable. How sad! If employees are unhappy with their jobs and employer, you can be assured customers are not getting the care and service they need and deserve. Effective human resources and performance improvement initiatives go a long way to creating and maintaining a healthy climate in which people are valued and therefore empowered to create value. Incorporate these basic elements of a healthy work place climate: supportive management, clarity of job roles and expectations, encouragement of individual contributions, recognition and appreciation of individual and organizational efforts, the freedom to ask questions and make suggestions, challenges to learn and grow, and, most importantly, collective harmony.

Step Four.
This is a critical step. Everyone in the organization must understand who their customers are, both internally (employees) and externally (those who receive our product or service), and what they expect and need. Any organization that does not make its customers the top priority will not enjoy long-term success. One's finger must always be on the pulse of customer satisfaction and immediate measures taken whenever problems are identified.

Step Five.
The focus of this article. Create a living, breathing, highly visible performance improvement program and mindset. In order to be effective, performance improvement must belong to everyone in the organization from the top down. It is not about empty words or paper compliance. It is about a dedication to quality and a constant striving for improvement. It is based on understanding the important aspects of the care and/or service provided and the objective measurement of performance in the meeting and exceeding of established goals and expectations. It is not about assigning blame or passing judgment, but it is always about acknowledging problems and determining improvements. A successful performance improvement program is focused and structured as well as flexible enough to meet changing needs and requirements. It is based on effective communication that consistently travels up and down -- up to the executive staff and Board as well as down to the line employees. It employs a scientific approach through the collection, assessment and reporting of relevant data. It measures progress and recognizes patterns and trends. It consistently meets and endeavors to exceed regulatory and legislative requirements. It is understood by everyone in the organization and is embodied by the leaders and embraced by the employees. It should be dynamic, visible and, here's a revelation, fun. Essentially, performance improvement is the fabric that holds an organization together and makes it whole.

Step Six.
The final step. Evaluate. Never stop checking what has been planned and done and always act on opportunities for improvement and change. Never accept second best and always focus on the customers.

About the author: Lynne A. Wolff's mission is to maximize performance, both for Scheur Management Group clients and for the health plans owned through SMG's new business initiative, Venture Health Partnership Group (VHPG). With 20 years of proven results in guiding quality and performance improvement for health care businesses and managed care plans, Ms. Wolff puts that know-how to work in identifying and implementing best practices across the board. Ms. Wolff conducts comprehensive evaluation of processes, policies and practices, from administration and operations to clinical services and staffing. In each case, the goal is to identify, document and implement best practices and to establish performance accountability standards that both meet regulatory requirements and assure organizational and financial effectiveness.


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