KEY PERFORMANCE INDICATORS

measurement = management

AGENDA

What are Key Performance Indicators (KPIs)?

Examples of KPIs

How are KPIs selected?

Alignment to Strategic Goals

IT KPI Examples

Questions

KPI DEFINITION

At an organizational level, a Key Performance Indicator (KPI) is a quantifiable metric that reflects how well an organization is achieving its stated goals and objectives.

EXAMPLES OF KPIS

HEALTHCARE – READMISSION RATES, CLINICAL OUTCOMES, COSTS PER TREATMENT, MORTALITY RATES, TIME BETWEEN ED ADMIT AND SEEING PHYSICIAN, LOS, HCAHPS SCORES, PROFIT MARGIN, COSTS AS A % OF REVENUE, FTE PER ADJUSTED OCCUPIED BED, PATIENT ENGAGEMENT

SUPPLY CHAIN – COSTS PER UNIT, SALES YOY, ON-TIME SCHEDULING AND DELIVERY

FINANCIAL – RETURN ON INVESTMENT, COSTS OF CAPITAL, REVENUES PER EMPLOYEE, MARGINS BY PRODUCT LINE

IT KPI EXAMPLES (NOT ALL-INCLUSIVE LIST)

Costs – Costs of IT as a % of budget, IT costs per employee, Avg costs per IT project, TCO, IT investments as a % of total investments

Incident Management – Uptime, response time, resolution time, MTBF (mean time between failures), avg # of complaints per employee, # tickets closed first call

Data Warehousing – Costs per terabyte (acquisition costs), Avg storage costs per terabyte

KPI SELECTION measurement = management

KEY FACTORS TO CONSIDER Understanding the Context

What is the vision for the future?

What is the strategy? How will the strategic vision be accomplished?

What are the organization's objectives? What needs to be done to keep moving in the strategic direction?

What are the Critical Success Factors? Where should the focus be to achieve the vision?

KEY FACTORS TO CONSIDER KPI Development

Which metrics will indicate that you are successfully pursuing your vision and strategy?

How many metrics should you have? (Enough, but not too many!)

How often should you measure?

Who is accountable for the metric?

How complex should the metric be?

KEY FACTORS TO CONSIDER KPI Development

What should you use as a benchmark? Standards?

How do you ensure the metrics reflect strategic drivers for organizational success?

How could the metrics be cheated, and how will you guard against this?

What negative incentives would be set up if this metric was used, and how will you ensure these incentives are not created?

TOOLS TO USE measurement = management

MEASUREMENT PLAN EXAMPLE

Hospital Area Key Performance Indicator Description Purpose for Tracking Data Location Data Owner Related KPIs/Data Collection Frequency Reports KPI to be used forEmergency Dept Patients LWBS - Target 2% Patients who left without being seen Understand patient flows

Workload impact on patientsPatient engagement opp's

EMR ED Administrator Daily at 7AM Hospital Ops DashboardCMS Payer reports

KPI Measurement Plan

DASHBOARD EXAMPLE

COMMUNICATION PLAN EXAMPLE

Objective Audience Purpose of communication What will be communicated How When Communication OwnerBring Awareness All Staff Build buy-in for strategy

Hold morale steadyKeep the focus on patients

How the change aligns to org vision and strategyThe value of the new EMR to patientsFinancialsNext stepsWhats needed from everyone

TownhallsPhysician MeetingsStaff MeetingsEmail

January 2016, dates TBD CIO, COO

Project Update Board of Directors Inform members on project statusAsk for inputBuild ownership

Project milestones achievedRisksCosts to dateShort-term wins

Board meetingEmail

25-Jan-16 CEO

Communication PlanInitiative: Implement EMR across organization

QUESTIONS measurement = management