1. The Passionate Pursuit of Organizational Excellence Using the Baldrige Model as a Blueprint A Presentation for VHA Central Kendall L. Stewart, M.D. February 24, 2006

2. Why is this topic important? All of us say we want to build and sustain excellent organizations. But mediocre health care organizations are often financially successful, and nothing stymies like success. For various reasons, we are now demanding more of ourselves. In this environment, many health care leaders are finding the comprehensive Baldrige model attractive. This presentation summarizes SOMC’s long-term commitment to this model as our blueprint for building and sustaining an exceptional health care organization. After mastering the information in this presentation, you will be able to identify –The core values and concepts that are the foundations of the Baldrige model. –The categories included in the Baldrige model, –Three reasons why you may want to adopt this model as your blueprint for building an exceptional organization, –Three common barriers to the successful adoption of this model, –Three practical strategies that the Baldrige model might suggest in your pursuit of organizational excellence.

3. What are the core values and concepts in the Baldrige model? Visionary leadership Patient-focused excellence Organizational and personal learning Valuing staff and partners Agility Focus on the future Managing for innovation Management by fact Social responsibility and community health Focus on results and creating value Systems perspective

4. Why did SOMC adopt the Baldrige model? The model was entirely consistent with the organizational culture we were already building. The model was comprehensive. The model was supportive of our relentless and unending quest for excellence. We had leaders who were willing to pay the price. 1,2 We saw an opportunity to build a strategic partnership with The Ohio Partnership for Excellence™.

5. What are some of the barriers you can expect? This model is tough. This model requires senior leaders to get personally involved and to be patient. This model is exceedingly humbling for those leaders who already consider themselves successful. People will initially see this as just another program- of-the-month. Cynics will complain that leaders just want to win awards. Most of us in health care “just know” we are the best, and it is annoying to be confronted with evidence that we could improve. 1,2 Many will say, “We are making money. What else matters?”

6. What strategies might the Baldrige model suggest? Leadership –Align the organization around a few key strategic values. –Deploy leadership teams throughout the organization. –Define the “Rules of Engagement.” –Field the best possible leaders at every level of the organization. –Require all leaders to serve as state or national quality examiners. –Implement a practical succession planning process. Strategic Planning –Deploy a strategic planning process that focuses on organizational performance. Focus on Patients, Other Customers, and Markets –Sustain the delivery of exceptional customer service. –Implement a comprehensive physician relationship management process. Page 1 of 2

7. What strategies might the Baldrige model suggest? Measurement, Analysis, and Knowledge Management –Identify key performance indicators. –Demand comparative data. –Deploy balanced dashboards throughout the organization. Staff Focus –Deploy a comprehensive initiative to achieve and sustain exceptional employee satisfaction. Process Management –Document key processes. –Deploy an understandable process improvement methodology. Organizational Performance Results –Set measurable short- and long-term goals. –Insist on detailed action plans and hold leaders accountable. Page 2 of 2

8. What is the evidence that our commitment to this model is paying off? Our safety indicator percentile rankings Our quality indicator percentile rankings Our patient satisfaction percentile rankings Our employee satisfaction percentile rankings 1 Our physician satisfaction percentile rankings Our financial performance Our Baldrige scorecard results 1,2,3

9. Overall Application Band Score  Safety  Quality  Service  Relationships  Performance 

10. Overall Number of Strengths  Safety  Quality  Service  Relationships  Performance  90 63 86 97

11. Overall Number of OFIs  Safety  Quality  Service  Relationships  Performance  39 78 74

12. What have you learned? The Baldrige model offers an excellent model for those health care organizations seeking to achieve and sustain exceptional performance. This approach is not quick, and it is not easy. If you are just looking for a quick award, do something else. If you are willing to invest the time and energy, there is no better way to run the business. If you adopt this blueprint, –Prepare to be humbled, –Prepare to be challenged, and –Prepare to walk among the very best.

13. Where can you learn more? Southern Ohio Medical Center, 2005 Baldrige Application, March 2005 Ohio Partnership for Excellence, http://www.oae.org/ http://www.oae.org/ Baldrige National Quality Program, http://baldrige.nist.gov/ http://baldrige.nist.gov/ Stewart, Kendall L., et. al., A Portable Mentor for Organizational Leaders, SOMCPress, 2003 Stubblefield, Al, The Baptist Health Care Excellence: Creating a Culture that WOWs, John Wiley & Sons, 2004 Studer, Quint, Hardwiring Excellence: Purpose, Worthwhile Work, Making a Difference, Fire Starter Publishing, 2004 Visit www.KendallLStewartMD.com to download related White Papers and presentations.www.KendallLStewartMD.com

14. How can we contact you? Kendall L. Stewart, M.D. VPMA and Chief Medical Officer Southern Ohio Medical Center President & CEO The SOMC Medical Care Foundation, Inc. 1805 27th Street Portsmouth, Ohio 45662 740.356.8153 stewartk@somc.org Webmaster@KendallLStewartMD.com www.somc.org www.KendallLStewartMD.com

15.   Safety Safety  Quality Quality  Service Service  Relationships Relationships Performance  Are there other questions? www.somc.org