Information technology has progressively moved from the periphery to the center of corporate strategy. This brief is not a prescription or an exhaustive recommendation but only brings to fore some of points to trigger in depth analysis on IT-Business alignment.
To build an effective foundation for execution, an organization has to pay attention to its operating model, enterprise architecture, and IT engagement model. Such a foundation calls for formulating an IT strategy that aligns with the business strategy, building internal partnerships between IT and business units, and reengineering of IT as a business partner. IT must enable, support, and drive organization growth. Creating or changing the information strategy impacts corporate strategic planning process, organizational structure and power equations, information systems responsibilities, and technology stack.
The first step to having an empowering IT agenda is to recognize the associated cost implications, complexity, and consequences. “Defensive IT” ensures operational reliability while “Offensive IT” helps organizations leapfrog the competition through clever use of emerging technologies and carries an element of risk. Each style has unique governance needs and must be lead by a skilled communicator who can challenge entrenched in-house thinking. An important point to keep in mind is that achieving and sustaining IT-business alignment is difficult and often treacherous.
Health sector in general has been lagging in adopting information technology for a variety of reasons like lack of demonstrated cost effectiveness, interoperability, high adoptions cost, and confidentiality requirements. Some of the challenges are unique to the health industry alone but many are common to industries at large and it may be worthwhile taking lessons from outside of this vertical.
Bringing information strategy into the boardroom makes the organization agile and equips it to respond quickly to a fast changing and evolving market. It brings together motivated experts, empowered decision makers and digitized process. A strategic execution officer or the CIO, under the umbrella of a “Center of Excellence for Innovation and Technology,” could evangelize the need for strategic information management, make IT investment decisions, transition management, and coordinate enterprise change projects.
Showing posts with label Change. Show all posts
Showing posts with label Change. Show all posts
Monday, November 29, 2010
Wednesday, April 21, 2010
A thing or two about change - William Bridges way - Final part
Launching the new beginning - facilitating people to emerge from the neutral zone and allow them to be fully expressed in the new order.
New starts are not enough. There could be several of them. A start is made on the formal date of announcement but people continue on the 2 train architecture. They have a shadow existence meeting their old team mates for lunch and going to their old bosses for advice. In such cases the new beginning has not been made because people have not put in their emotional commitment to do things the new way. The beginning is the final phase of the transition and the timing is not set by the bosses or the steering committees.
Sometimes when the neutral zone has been long enough, people resist beginnings for the following reasons:
1. Uncertainty about what this new future has in store for us
2. New beginnings may bring back the ghosts from the past
3. A new beginning creates the need to re-establish credibility and accountability
Beginnings may be facilitated by 4Ps
Purpose: Communicate why and how the new beginning was envisaged in terms of "what is in it for me". Sometimes there may be no purpose or the communication may be intentionally withheld leading to a loss of trust. Poor or mismanaged communication can seriously jeopardize any change program. The communication does not reflect the true intent of the leadership it means nothing to the people. This often leads to one start after another leaving people worn out without making any difference to the underlying scheme of things.
Picture: Imagery is very powerful. People need to create a mental picture of the new environment in which they will participate. This includes spatial layout, organization structure and experience. However a picture cannot replace the hard work of the leadership. Usually the change leaders typically go through their transition before they launch the change initiative. As a result they may fail to recognize the stages of transition the other are in. The imagery also has to be kept simple to allow people to relate to it meaningfully and not be overwhelmed.
Plan: Create a transition plan (different from a regular change plan). Transition plan is addresses at a personal level rather than a collective level. It is oriented to the process rather than the outcome.
Part to play: People need a part to may in the due course of the transition and in their relationship with others in the post change era. This allows people to gain firsthand knowledge on solving the problems associated with the change initiative and align themselves better.
As a final note, in order to reinforce the new beginning, there must be consistent, well aligned communication without sending conflicting messages. There must quick success navigating out the neutral zone with minimum time. The leadership must acknowledge the new identity. Symbolism is important as everything means something in the process of change.
New starts are not enough. There could be several of them. A start is made on the formal date of announcement but people continue on the 2 train architecture. They have a shadow existence meeting their old team mates for lunch and going to their old bosses for advice. In such cases the new beginning has not been made because people have not put in their emotional commitment to do things the new way. The beginning is the final phase of the transition and the timing is not set by the bosses or the steering committees.
Sometimes when the neutral zone has been long enough, people resist beginnings for the following reasons:
1. Uncertainty about what this new future has in store for us
2. New beginnings may bring back the ghosts from the past
3. A new beginning creates the need to re-establish credibility and accountability
Beginnings may be facilitated by 4Ps
Purpose: Communicate why and how the new beginning was envisaged in terms of "what is in it for me". Sometimes there may be no purpose or the communication may be intentionally withheld leading to a loss of trust. Poor or mismanaged communication can seriously jeopardize any change program. The communication does not reflect the true intent of the leadership it means nothing to the people. This often leads to one start after another leaving people worn out without making any difference to the underlying scheme of things.
Picture: Imagery is very powerful. People need to create a mental picture of the new environment in which they will participate. This includes spatial layout, organization structure and experience. However a picture cannot replace the hard work of the leadership. Usually the change leaders typically go through their transition before they launch the change initiative. As a result they may fail to recognize the stages of transition the other are in. The imagery also has to be kept simple to allow people to relate to it meaningfully and not be overwhelmed.
Plan: Create a transition plan (different from a regular change plan). Transition plan is addresses at a personal level rather than a collective level. It is oriented to the process rather than the outcome.
Part to play: People need a part to may in the due course of the transition and in their relationship with others in the post change era. This allows people to gain firsthand knowledge on solving the problems associated with the change initiative and align themselves better.
As a final note, in order to reinforce the new beginning, there must be consistent, well aligned communication without sending conflicting messages. There must quick success navigating out the neutral zone with minimum time. The leadership must acknowledge the new identity. Symbolism is important as everything means something in the process of change.
Wednesday, April 7, 2010
Nimble management
Introduction
Healthcare, like other sectors, has evolved to service a societal need. With a high number of players, interlocking systems and regulations, it is sensitive to the forces of people, process, and technology. The proposed reform will drive hospitals (also referred to as healthcare organization or provider in this essay) to be more competitive, bring down costs, and provide better outcomes. These are possible through transformational initiatives, none of which may be easy or intuitive. This essay highlights an alternate view of value and the factors that are crucial to succeed in instituting change.
Defining and locating value
Every organization exists because of a customer need it serves. A hospital helps a citizen to remain and stay healthy, and in the process creates and delivers value to the patient. Value may be defined as a product of quality of care, price paid for care and image of the hospital. Perception of value varies depending on type of care and other available choices e.g. patients seeking cardiac care may be fine spending high dollar amount as opposed to those seeking cure for common flu. Every interaction the patient has with the provider erodes or adds to patient loyalty. Value is greater than the sum of all services rendered to the patient. While it is convenient to work with an internal definition of value, a patient centric view is likely to fetch favorable results. A strong commitment to customer value increases organization’s competitive advantage, market share, and profitability. Drawing out a value stream is a key activity in the process of discovering this strategic measure of success.
Building blocks of a value stream
A value stream is a traditional six-sigma tool that allows us to analyze and align the sense of value within and beyond the enterprise. Admit-Discharge-Transfer-FollowUp (for in-patient) and Appointment-Diagnosis-Treatment-FollowUp (for outpatient) are typical value streams in health delivery. A business process is a set of activities that builds the value stream. An activity is a task or business function that has a hand-off either to another activity or to an end customer and has some measure of value. Activities may be of three types
• Those that create value
• Those that do not create value but cannot be dropped immediately
• Those that do not create value and are considered for elimination
While in the process of detailing the value stream, it is tempting to start reductionist, cost cutting changes mid way through the exercise. On the other hand, organizations need not go overboard with minutiae and must learn to prioritize the processes to balance the effort and gain. Surveys show that one of every five Medicare beneficiaries discharged from the hospital undergo readmission within 30 days, and half of non-surgical patients are readmitted to the hospital without having been seen by a doctor in an outpatient follow-up. There is opportunity in extending the scope of the value stream beyond the traditional enterprise boundaries. Providers, for example, can offer great value through post-discharge medication management. Creation of value stream forms a foundation for integrated health delivery. Such new models of business require innovative teams and leadership to succeed.
Team and Leadership
Most organizations are set up to operate in functional silos. During projects, resources from different departments combine to form a virtual team (matrix based). This is a winning formula so long as people are rational, share common motives and prioritize project goals in favor of departmental interests. However, in practice, managers struggle to get stakeholders aligned, provide contextual leadership, and retain a well performing team. One of the ways to have a focused team is to have it assigned to relevant business processes. The importance of team-based collaboration in healthcare is a difficult yet important agenda to pursue. Typically, the CxO owns the value stream and the dedicated senior management oversee each business process. Reformulation of the organization personnel along lines of business process often creates dramatic shifts in power. In general, people resist such initiatives making change management an important part of any innovation. The diagram below shows the connections between value stream, business process, activity, and organizational hierarchy.
A strategic transformation without strong leadership seldom has a chance to succeed. An empowered workforce that shares the strategic vision with its senior management creates an environment where change can thrive.
Socio technical aspect of change
Projects may fail for a number of reasons including lack of change management, resistance of stakeholders (including end user) and incorrect definition of value. Projects seldom fail for technical reasons as they do due to poor expectation and change management. Organizations need to recognize the interdependency between social and technical subsystems during periods of change. The technical subsystem consists of tools and techniques used to deliver favorable outcomes using given inputs. The social subsystem comprises of the people, knowledge, attitudes, needs, and chain of command affecting the workforce.
Psychological barriers
Altering knowledge and attitude is an effective and sustainable way to transform human behavior. Typical barriers in warming up to change include:
• Differences of opinion - people impacted by change often question its concept and are pessimistic about benefits arising from it
• Not participating in change - not acknowledging initiatives and not familiarizing with contents of the initiative
• Inertia of past practice has no motivation to adopt innovation
• Lack of preparation, lack of confidence and fear of job loss - during change, it is common for people to lose jobs. Paradoxically, it creates new jobs too. Employees who find it difficult keeping pace with change drop out and create skill gaps filled through lateral recruitment.
• External barriers – limited time, resource constraint, conflict between patient preferences and organization culture.
Illustrating the impact of barriers on change, a survey of over 800 participants at an annual electronic medical record (EMR) trade fair in the US in 2007 found that 19% of respondents reported that they had or were in the process of de-installing an EMR system.
Group dynamics
Diffusion of change across professions or groups depends on prevalent belief system and shared work experience. Lack of explicit tasks, lack of local leadership, and influence of professional socialization; all are factors that slow down change. Physicians train to be fiercely independent and exercise high levels of autonomy. Practice of medicine by its very nature is fluid with few formalized control mechanisms. Integrated inter-professional education is only starting to gain recognition in healthcare. Organizations realize collaboration and inter-professional relationship are critical success factors in patient care. Targeted workplace based training will prove to be vital for providers to manage group dynamics, keeping in mind that interventions aimed at one group could impact other professional groups.
The Brain factor
Any disruption in routine is potential change and is intimidating for most parts. Physiologically, the prefrontal cortex of the brain handles multiple threads of logic. However, its processing capacity is limited producing fatigue and possible anger upon reaching the threshold. Activity in the pre-frontal cortex burns a lot of metabolically expensive blood glucose. In contrast, the basal ganglia use blood sugar more economically and have higher processing capacity. This part of the brain stores the hardwired memories and habits and allows us to do the task mechanically. The interplay between the two parts of the brain gives us an insight into workforce resistance towards change. Traditional change management does not sufficiently address psychology and/or physiology. Reward-rebuke approach, unless applied system-wide, yields predictably low results. Surveys suggest that primary driver in workplace is neither money nor promotion, but a personal interest in the job, a conducive environment and fulfilling inter-professional relationship with colleagues.
When the prefrontal cortex perceives a well-meaning initiative as a threat, it soon becomes exhausted and just as quickly gets the individual to resist. One way to get past the brain defense is to help people to assimilate change contextually; get them to see the big picture and connect the dots. Brains scans show a tremendous amount of activity during moments of insights with the brain busy building complex connections. Good change management needs a lot of patience. Leaders have to resist their urge to be prescriptive. When the front line employees do not have the time window to make these connections on their own, they view change adversely. Addressing the physiological impulses constructively can be soothing to the prefrontal cortex.
Conclusion
“And let it be noted that there is no more delicate matter to take in hand, nor more dangerous to conduct, nor more doubtful in its success, than to set up as a leader in the introduction of changes. ” – Niccolo Machiavelli
Healthcare, like other sectors, has evolved to service a societal need. With a high number of players, interlocking systems and regulations, it is sensitive to the forces of people, process, and technology. The proposed reform will drive hospitals (also referred to as healthcare organization or provider in this essay) to be more competitive, bring down costs, and provide better outcomes. These are possible through transformational initiatives, none of which may be easy or intuitive. This essay highlights an alternate view of value and the factors that are crucial to succeed in instituting change.
Defining and locating value
Every organization exists because of a customer need it serves. A hospital helps a citizen to remain and stay healthy, and in the process creates and delivers value to the patient. Value may be defined as a product of quality of care, price paid for care and image of the hospital. Perception of value varies depending on type of care and other available choices e.g. patients seeking cardiac care may be fine spending high dollar amount as opposed to those seeking cure for common flu. Every interaction the patient has with the provider erodes or adds to patient loyalty. Value is greater than the sum of all services rendered to the patient. While it is convenient to work with an internal definition of value, a patient centric view is likely to fetch favorable results. A strong commitment to customer value increases organization’s competitive advantage, market share, and profitability. Drawing out a value stream is a key activity in the process of discovering this strategic measure of success.
Building blocks of a value stream
A value stream is a traditional six-sigma tool that allows us to analyze and align the sense of value within and beyond the enterprise. Admit-Discharge-Transfer-FollowUp (for in-patient) and Appointment-Diagnosis-Treatment-FollowUp (for outpatient) are typical value streams in health delivery. A business process is a set of activities that builds the value stream. An activity is a task or business function that has a hand-off either to another activity or to an end customer and has some measure of value. Activities may be of three types
• Those that create value
• Those that do not create value but cannot be dropped immediately
• Those that do not create value and are considered for elimination
While in the process of detailing the value stream, it is tempting to start reductionist, cost cutting changes mid way through the exercise. On the other hand, organizations need not go overboard with minutiae and must learn to prioritize the processes to balance the effort and gain. Surveys show that one of every five Medicare beneficiaries discharged from the hospital undergo readmission within 30 days, and half of non-surgical patients are readmitted to the hospital without having been seen by a doctor in an outpatient follow-up. There is opportunity in extending the scope of the value stream beyond the traditional enterprise boundaries. Providers, for example, can offer great value through post-discharge medication management. Creation of value stream forms a foundation for integrated health delivery. Such new models of business require innovative teams and leadership to succeed.
Team and Leadership
Most organizations are set up to operate in functional silos. During projects, resources from different departments combine to form a virtual team (matrix based). This is a winning formula so long as people are rational, share common motives and prioritize project goals in favor of departmental interests. However, in practice, managers struggle to get stakeholders aligned, provide contextual leadership, and retain a well performing team. One of the ways to have a focused team is to have it assigned to relevant business processes. The importance of team-based collaboration in healthcare is a difficult yet important agenda to pursue. Typically, the CxO owns the value stream and the dedicated senior management oversee each business process. Reformulation of the organization personnel along lines of business process often creates dramatic shifts in power. In general, people resist such initiatives making change management an important part of any innovation. The diagram below shows the connections between value stream, business process, activity, and organizational hierarchy.
A strategic transformation without strong leadership seldom has a chance to succeed. An empowered workforce that shares the strategic vision with its senior management creates an environment where change can thrive.
Socio technical aspect of change
Projects may fail for a number of reasons including lack of change management, resistance of stakeholders (including end user) and incorrect definition of value. Projects seldom fail for technical reasons as they do due to poor expectation and change management. Organizations need to recognize the interdependency between social and technical subsystems during periods of change. The technical subsystem consists of tools and techniques used to deliver favorable outcomes using given inputs. The social subsystem comprises of the people, knowledge, attitudes, needs, and chain of command affecting the workforce.
Psychological barriers
Altering knowledge and attitude is an effective and sustainable way to transform human behavior. Typical barriers in warming up to change include:
• Differences of opinion - people impacted by change often question its concept and are pessimistic about benefits arising from it
• Not participating in change - not acknowledging initiatives and not familiarizing with contents of the initiative
• Inertia of past practice has no motivation to adopt innovation
• Lack of preparation, lack of confidence and fear of job loss - during change, it is common for people to lose jobs. Paradoxically, it creates new jobs too. Employees who find it difficult keeping pace with change drop out and create skill gaps filled through lateral recruitment.
• External barriers – limited time, resource constraint, conflict between patient preferences and organization culture.
Illustrating the impact of barriers on change, a survey of over 800 participants at an annual electronic medical record (EMR) trade fair in the US in 2007 found that 19% of respondents reported that they had or were in the process of de-installing an EMR system.
Group dynamics
Diffusion of change across professions or groups depends on prevalent belief system and shared work experience. Lack of explicit tasks, lack of local leadership, and influence of professional socialization; all are factors that slow down change. Physicians train to be fiercely independent and exercise high levels of autonomy. Practice of medicine by its very nature is fluid with few formalized control mechanisms. Integrated inter-professional education is only starting to gain recognition in healthcare. Organizations realize collaboration and inter-professional relationship are critical success factors in patient care. Targeted workplace based training will prove to be vital for providers to manage group dynamics, keeping in mind that interventions aimed at one group could impact other professional groups.
The Brain factor
Any disruption in routine is potential change and is intimidating for most parts. Physiologically, the prefrontal cortex of the brain handles multiple threads of logic. However, its processing capacity is limited producing fatigue and possible anger upon reaching the threshold. Activity in the pre-frontal cortex burns a lot of metabolically expensive blood glucose. In contrast, the basal ganglia use blood sugar more economically and have higher processing capacity. This part of the brain stores the hardwired memories and habits and allows us to do the task mechanically. The interplay between the two parts of the brain gives us an insight into workforce resistance towards change. Traditional change management does not sufficiently address psychology and/or physiology. Reward-rebuke approach, unless applied system-wide, yields predictably low results. Surveys suggest that primary driver in workplace is neither money nor promotion, but a personal interest in the job, a conducive environment and fulfilling inter-professional relationship with colleagues.
When the prefrontal cortex perceives a well-meaning initiative as a threat, it soon becomes exhausted and just as quickly gets the individual to resist. One way to get past the brain defense is to help people to assimilate change contextually; get them to see the big picture and connect the dots. Brains scans show a tremendous amount of activity during moments of insights with the brain busy building complex connections. Good change management needs a lot of patience. Leaders have to resist their urge to be prescriptive. When the front line employees do not have the time window to make these connections on their own, they view change adversely. Addressing the physiological impulses constructively can be soothing to the prefrontal cortex.
Conclusion
“And let it be noted that there is no more delicate matter to take in hand, nor more dangerous to conduct, nor more doubtful in its success, than to set up as a leader in the introduction of changes. ” – Niccolo Machiavelli
Friday, March 19, 2010
A thing or two about change - William Bridges way - Part 2
Continuing on transitions
Often i hear programs started with lot of fanfare and then all of a sudden the environment is rife with rumors and disappointment. Characteristically marked by low motivation, low productivity and fatigue; people seem lost.
This is the neutral zone where people are in suspended animation trying to cope with life cut of from old ways of being and in anticipation of the new order. Well covered weaknesses are suddenly brought out into the open. A major concern in this state of affairs is that priorities get confused, risk of miscommunication. Under this polarized environment, it is easy for consensus to break apart and people say to themselves "get off the sinking ship Asap".
However, the neutral zone is also a time to plant seeds of innovation into the organizational psyche. It is a time weakness when organization culture is weak and offers minimal resistance to new ideas. In a well managed neutral zone, reorientation and redefinition may be effectively achieved. When people are ambivalent it is necessary and critical to address their doubts and reinforce the directional strategies.
When people pass through no-man land, they feel confident when they are able to remain interconnected. Training helps. Letting people know that we are all in it together helps them relate and bond better. The neutral zone is also a time to seek creative ideas inside the organization. Over the years in most companies the organizational immune system(the culture of business as usual) chokes off creativity. A neutral zone is a great platform to shake that feeling of status quo.
"When old words die out on the tongue, new melodies break forth from the heart; and where old tracks are lost, new country is revealed with its wonders"... Rabindranath Tagore
Often i hear programs started with lot of fanfare and then all of a sudden the environment is rife with rumors and disappointment. Characteristically marked by low motivation, low productivity and fatigue; people seem lost.
This is the neutral zone where people are in suspended animation trying to cope with life cut of from old ways of being and in anticipation of the new order. Well covered weaknesses are suddenly brought out into the open. A major concern in this state of affairs is that priorities get confused, risk of miscommunication. Under this polarized environment, it is easy for consensus to break apart and people say to themselves "get off the sinking ship Asap".
However, the neutral zone is also a time to plant seeds of innovation into the organizational psyche. It is a time weakness when organization culture is weak and offers minimal resistance to new ideas. In a well managed neutral zone, reorientation and redefinition may be effectively achieved. When people are ambivalent it is necessary and critical to address their doubts and reinforce the directional strategies.
When people pass through no-man land, they feel confident when they are able to remain interconnected. Training helps. Letting people know that we are all in it together helps them relate and bond better. The neutral zone is also a time to seek creative ideas inside the organization. Over the years in most companies the organizational immune system(the culture of business as usual) chokes off creativity. A neutral zone is a great platform to shake that feeling of status quo.
"When old words die out on the tongue, new melodies break forth from the heart; and where old tracks are lost, new country is revealed with its wonders"... Rabindranath Tagore
Saturday, February 20, 2010
A thing or two about change - William Bridges way - Part 1
I was reading Managing Transitions by William Bridges. A great read for anyone into IT consulting.
There is a distinction between change and transition. Change is situational characterized by the movement from one state to the other. It is outcome driven. Transition is psychological, a journey that makes change possible. It is the process by which people internalize and come to terms with the new order introduced by change. Most often than not, an apparently logical and well intended change fails miserably because the tansition is mismanaged.
The first step of transition is to recognize that it is time to bring the curtain down on the old ways; at least some of them. So transition starts with an ending of sorts. It is critical for change managers and project managers to understand the while people have no inhibition to the very outcome generated by the change, they naturally tend to resist the losses and endings that come with it.
Often the change creates a series of Brownian collisions making a far reaching impact. Everyone is losing something and many of the losses are not concrete because change is perceived through the filters of the mind.
Dynamic leadership
Enables the workforce to accept the realities of change
Does not get upset with overreaction
Acknowledge the losses openly and tries to compensate for it(does not have to be monetarily)
The underlying substratum of change is communication. It important that people are not misinformed (usually misinformation spreads at the speed of light). It pays to reiterate what's coming to an end and what is new order in Simple messages. Not all things about the past is necessarily bad and so it deserves some reverance. But it is important to show how the past has ceded the way to the future to unfold like the pupa has to give itself up to become the butterfly.
There is a distinction between change and transition. Change is situational characterized by the movement from one state to the other. It is outcome driven. Transition is psychological, a journey that makes change possible. It is the process by which people internalize and come to terms with the new order introduced by change. Most often than not, an apparently logical and well intended change fails miserably because the tansition is mismanaged.
The first step of transition is to recognize that it is time to bring the curtain down on the old ways; at least some of them. So transition starts with an ending of sorts. It is critical for change managers and project managers to understand the while people have no inhibition to the very outcome generated by the change, they naturally tend to resist the losses and endings that come with it.
Often the change creates a series of Brownian collisions making a far reaching impact. Everyone is losing something and many of the losses are not concrete because change is perceived through the filters of the mind.
Dynamic leadership
Enables the workforce to accept the realities of change
Does not get upset with overreaction
Acknowledge the losses openly and tries to compensate for it(does not have to be monetarily)
The underlying substratum of change is communication. It important that people are not misinformed (usually misinformation spreads at the speed of light). It pays to reiterate what's coming to an end and what is new order in Simple messages. Not all things about the past is necessarily bad and so it deserves some reverance. But it is important to show how the past has ceded the way to the future to unfold like the pupa has to give itself up to become the butterfly.
Subscribe to:
Posts (Atom)