Services How Value Capture Can Help These cases highlight strategies to perfect hospital processes so they can simultaneously produce world class quality, drop non-personnel costs 30-50%, with very short lead times (creating happy patients, staff, and the ability to increase volume without addtional resource investment). In an environment where most hospitals are "price takers," the power of these ideas to reduce costs via the same process stabilization that leads to better results for patients and staff is ever more attractive to hospital leaders. Value Capture Opportunity: Worker Injuries Value Capture Opportunity: All Unsafe Conditions Value Capture Opportunity: Eliminate Medication Errors and Waste Value Capture Opportunity: Eliminate Infections and Waste Value Capture Opportunity: Service Line/Core Process Audit Value Capture Opportunity: Testing the VC System in a Service Line Implementation Support - Value Capture helps CEOs achieve business case results via transfer of skills from Value Capture to CEO & hospital team SUPPORT TO TRANSFORM PERFORMANCE OF MAJOR SERVICE LINES ON QUALITY, COST AND LEAD TIME DIMENSIONS Begin teaching stabilization techniques (5S) and work standardization. Begin teaching leaders to systemically eliminate all error and waste by equipping everyone to redesign work processes and providing them with the problem solving experience and structure necessary to continually improve. Value Capture provides 5S and work standardization modules and develops appropriate trainers within hospitals. Value Capture guides CEO and hospital leaders in each sequential step of process redesign, helping hit defined outcomes and transferring necessary skills so that leaders can replicate results in scalable fashion through involvement of entire workforce. Expected Outcomes: Classes of problems and waste related to lack of organization are rapidly reduced. Setup in place for more rapid system redesign. This initial phase alone can produce a 15:1 return on investment in large institutions and a $10,000 per bed benefit in all institutions, dependening on service lines. Quality outcomes approach perfect with corresponding reductions of 30-50% in non-personnel costs. Leaders have experience necessary to begin to replicate results in scalable fashion through the involvement of the entire workforce. OPPORTUNITY OBSERVATION SEQUENCE: ALIGNING LEADERS FOR TRANSFORMATION (4 days) Value Capture works with the CEO to facilitate a series of shared experiences for the hospital's leadership team. Through observation on the hospital floor, leaders experience the gap between the challenges staff face in delivering care - how problems occur - and how problems are presently addressed in the organization. Leaders self-diagnose opportunities in their hospital's current state and then design and test improvements to strategy, structure, and daily management that transformational levels of performance will require. This activity is followed by planning to implement those changes into the daily management system of the institution. Expected Outcomes: Typically initiates critical pieces of a hospital's transformation strategy, including: aiming for goals set at the ideal in safety/quality, cost, and lead time; attempting to solve problems in "real time" vs. retrospective committee-based approaches, and teaching everyone to solve problems to root every day. Allows leader to bring up to 21 key stakeholders through a set of experiences that align them around leaders' transformation plan. Produces concrete management system improvements that allow the institution to begin to progress more quickly toward its audacious, measurable safety and quality goals. VALUE CAPTURE UNIVERSITY (5 days) Originally developed by Alcoa, Harvard Business School and the Toyota Supplier Support Center, this is an intensive hands-on training in the use of Toyota Production System principles, adapted to health care. Expected Outcomes: The University helps top operating leaders convert from "push" traditional process thinking to "pull" - and gets them committed to deeper learning via implementing the ideas in the processes they control, with coaching support. Preparing CEOs to Lead Transformation through the Value Capture System CEO PREPARATION: LEADING A PERFORMANCE TRANSFORMATION USING THE VALUE CAPTURE SYSTEM 7 sessions (2-4 hours each) conducted on-site to help CEOs properly scope the opportunity in their own institutions. A series of on-the-floor observations are coupled with data analysis, Harvard Business School leadership strategy cases, and customized strategy development. Expected Outcomes: The CEO will be equipped with the knowledge needed to create and initiate a successful performance transformation strategy for their institution. The CEO will have created a preliminary plan to capture ideal quality, and reduce costs and lead time. Exposing CEOs to the Value Capture System - for leaders considering the Value Capture approach for transforming their organizations CEO PREVIEW SESSION: SCOPING THE OPPORTUNITY IN YOUR OWN HOSPITAL (3 hours) Following a discussion of the needs of the institution and the Value Capture principles, observations of front-line work and the formal problem solving systems in the hospital are conducted jointly with the CEO. Expected Outcomes: CEO assesses the scope of the opportunity in their own institution and understands how the use of the Value Capture System can capture lost value. THE NEW AMERICAN HOSPITAL: EXECUTIVE STRATEGY SEMINAR (2 days) Value Capture has come together with a team of national leaders to create a seminar for transformation-minded hospital CEOs and future CEOs, demonstrating how they can dramatically improve results at their organizations by changing how they approach their roles and work every day. Faculty include Former U.S. Treasury Secretary and Alcoa CEO Paul O'Neill Sr.; Dr. Richard Shannon, Chief of Medicine at the University of Pennsylvania and national leader on safety, quality and financial improvement; Steve Spear, author of Chasing the Rabbit and thought leader on the world's highest performing organizations; and Kathryn Correia, President of ThedaCare's two urban hospitals, who helped create the Collaborative Care Model which has produced safer, higher quality care at 25% less cost. Expected Outcomes: Understand the core values and strategies that you can embed in your organization to create the potential for the highest levels of performance. Become inspired by examples of how this framework has been successfully applied inside and outside of healthcare. Begin to form a clear strategy of how you can transform the performance of your organization and decide on concrete initial steps towards implementing it. OVERVIEW: THE TOYOTA PRODUCTION SYSTEM (1 day) (This exercise was originally developed by the Toyota Supplier Support Center and is used extensively at Alcoa. Value Capture principals and colleagues have customized it for health care leaders.) Participants experience running and improving a mock manufacturing company. In between production runs, they are sequentially educated in the underlying ideas and key elements of the Toyota Production System. Expected Outcomes: Leaders gain knowledge of the Toyota Production System (TPS - a building block of the Value Capture System) and can envision using it to accelerate toward performance goals. Leaders experience using TPS ideas to solve problems and redesign work, and see that it is possible to dramatically and simultaneously improve quality/safety, reduce costs, and reduce lead times.