Management 2.0: Discovery of Integrated Enterprise Excellence (Management and Leadership System 2.0 Book 1) by Forrest W. Breyfogle III

Author:Forrest W. Breyfogle III [Breyfogle III, Forrest W.]
Language: eng
Format: azw3
ISBN: 9781735288215
Publisher: Citius Publishing, Inc.
Published: 2020-09-08T16:00:00+00:00

Figure 7.12: Enterprise Improvement Plan (EIP) for a Hospital

“If you recall from the 9-step IEE system, the first step is vision and mission; the second step is the organization’s IEE value chain, which describes what the organization does and how it measures what’s done. The third step involves analyzing the enterprise. The fourth step uses a total-system-of-processes perspective in the creation of realistic financial goals. This figure’s four-column graphic summarizes actions for steps 4 through 7 for an organization’s big-picture improvement effort. In IEE, the reference to this collective description of 30,000-foot-level performance metric and process improvement work is the organization’s enterprise improvement plan (EIP).

“I’ll now provide more information about each EIP column from left to right. The furthest column on the left offers an agreed-to mean or median monthly-reported financial target objective, with an associated achievement time frame.

“Before beginning, I need to provide some background information for this illustrative example. Consider that this hospital had a decline in revenue since a competing facility opened its doors. Because of this occurrence and the associated financial impact, the set monetary goal was a profit level enhancement to a level consistent with what existed before the competitor moved into town. Because of this hospital’s underlying situation, the created EIP’s specific, measurable, actionable, relavant, and time-based (SMART) business goal in the left-most column was determined to be ‘Return reported monthly profit margin median to 11.9% in 14 months.’

“It’s important to note that this financial target is stated as a median or mean monthly monetary value, not a particular value next month, quarter, or year. A mean or median goal for the financials should lead to an overall process improvement mindset, where many processes may need to be targeted for improvement to achieve this enterprise objective. This goal-setting-approach is in contrast to the common goal-setting practice of meeting a specific financial number for next month or next quarter, which can result in behaviors that don’t have a long-lasting positive impact on the financials and organization as a whole. The associated time frame for the mean or median financial target achievement should be aggressive but not unrealistic. SmarterSolutions.com has an article that highlights the importance of setting a median or mean monthly financial goal, as opposed to the common-place goal-setting practice of meeting a particular financial number at the end of a quarter or month (Reference Appendix A, Web page 5).

“The second from the left column is strategies, while the third column from the left is high potential areas, where, again, each area for these strategically identified business improvement metrics is to have an owner. The final column, which is on the right, is a metric description of the expectations from the identified improvement projects to undertake.

“Note how each of these improvement project statements in the right-most column is specified relative to a futuristic process output response for a 30,000-foot-level metric. To elaborate more on this point, look at the comment to describe the last project listed in this right-most column. The statement for this project is ‘Reduce wastage by 10% in 10 months.

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