grass-roots driven six sigma
TRANSCRIPT
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Grass-roots driven Six Sigma
Mary Jim Montgomery, COOBrit Watts, Six Sigma Black BeltBay Medical Center, Panama City, FL
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What keeps you up at night?
• High turnover?• No money?• Organizational conflict?• Lack of focus?• Unsure direction?• Stakeholder complaints?
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Our Journey to Excellence“A Kodak Moment”
• Identified burning platform• Leveraged Six Sigma into strategy• Made the most of limited resources• Built support & demonstrated value• Facilitated grass-roots collaboration
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The Burning Platform:Financial Vulnerability
•Break-even margins•Over-extended capital•Takeover threats looming
• Public hospital• Disproportionate share• No tax support• Aging facility (1949)
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• Low morale• Low empowerment• Lack of confidence• Crisis management
The Burning Platform:Cultural Crisis
• MD dissatisfaction• Hostile work climate• Antagonistic
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The Burning Platform:Lack of Focus
• Dissatisfied customers• Board interference• Delays & wastefulness• No consistency• Quality cycles
• No strategic plan• No shared vision• No goals
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Initiated Enterprise-wide Interventions
TO DO LIST:• Create multi-year strategic plan• Educate Board on governance• Restore physician relations• Stabilize financial position• Change the culture
…..In the next two years
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Integrated Six Sigma into Organization’s Strategic Plan
• Align 6σ to strategic initiativeso Reduce financial vulnerabilities
• Improve efficiency and eliminate wasteo Contribute to cultural shift
• Build leadership competencies & accountabilities
• Support data-based decision making• Initiate customer focus• Improve communications across
organization
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Six SigmaFinancing & Resources
• Begin with internal resourceso Executive sponsoro Industrial engineer/performance
improvement/change management skillso Involve functional leaders with vested
interest (& accountability) for change• Acquire affordable Six Sigma training
o Black Belt: In residence plus project support
o Green Belt: Supported by Black Belt
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Building Support & Demonstrating Value
• Align projects to organizational goalso Customer serviceo Financial performanceo Business practice improvemento Employee innovation & knowledge
• Follow DMAIC processo Customer focusedo Data-centeredo Project managemento Tollgate reviews
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Speak to Executive Audience• Logic (Logos)
o Chartso Datao Analysis
• Values (Ethos)o Qualityo Best in classo Competitive position
• Emotion (Pathos)o Serviceo Storieso Relationships
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Build Momentum Through Teams
• Support teams for successo Prepare for tollgate presentationso Independently confirm resultso Team members deliver findings
• Reinforce communication strategyo MDs, Board & CEO: Strategic impact,
competitive advantage & bottom-line results
o CFO: ROI, efficiency & effectivenesso COO & CNO: Effectiveness,
collaboration, service and quality
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Six Sigma.....the rest of the storyTeam
Efficiency & Effectiveness
Satisfaction & Service
Financial Impact/Yr
Reduced wait time from 45 min to less than 10 minReduced cycle time from 180 min to 45 min
Improved charge capture from 56% to over 92% Easier to useImproved layout and eliminated non-value-added steps
Better accountability & tracking
Reduced scheduled no-shows from 36% to less than 8%
Expedited arrival processing
Improved flow capacity for walk-in patients50% reduction in transcription backlog
MD satisfaction rose from 77% to 90%
40% increase in volumesANNUAL TOTAL $ 2,196,671.00
$ 526,146.00
$1,230,000.00
$ 328,525.00
$ 112,000.00
Preoperative AssessmentReduced cancelled
surgeries from 144 to 27/month
MRI Results reporting
Open Pyxis 5-S Redesign
Pre-registration
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Organizational Results:Financial Viability
0.41%
1.88%
2.40%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
2002 2003 2004
585 % increase in operating margin
• Multi-year capital plan• Collaborative priorities• Active business planning
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Organizational Results:Cultural Transformation
31.8%
23.1%
16.8%
0%
5%
10%
15%
20%
25%
30%
35%
2002 2003 2004
71% decrease in turnover
Savings & avoided costs = $ 1.4 million
•Competency-focused •Learning leaders•Engaged workforce•Shared confidence
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New Strategic DirectionIncludes Six Sigma deployment
• Physician partners• Shared accountability• Centers of Excellence
• Executive sponsors• Performance focused• Values-centered• Employee champions
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Questions?