NAHQ Vision for the Future: September 2010 Board Workshop Jim Austin austinjh60610@yahoo.com

NAHQ Vision for the Future:September 2010 Board

Workshop

Jim Austinaustinjh60610@yahoo.com

2

Where are we going?

"If You Don't Know Where You're Going, Any Road Will Get You There."

The Cheshire Cat, Alice In Wonderland

3

Vision and Mission

Vision

• Mission

• A (realistic) desired future state, aspiration goals

• Why the organization/unit exists—its core purpose and values

• Encompasses the organization

• A value proposition•The type of business/activity•The customers it serves•Scope of activities

• A daily call to action• At the unit or group level

Mission = Vision

4

Agenda

Introductions/Expectations• Overview of NAHQ Membership

Decision “Traps” and the Association of the Future?

Core Elements of a Vision? Next Steps

NAHQ Overview

NAHQ• 3 components

−NAHQ-membership−HQCB-certification−HQF-foundation

• Profile• Current state

5

NAHQ

1975 National Association of Utilization Review Coordinators

1978 National Association of Quality Assurance Professionals

1990 National Association for Healthcare Quality

6

NAHQ Profile 4,600 members Primarily acute care & nursing Average time in profession

7

8

9

NAHQ Profile Budget $2 M Annual conference Journal for Healtcare Quality E-News

10

HQCB 1984 first exam 7,000 certificants

• 60% non-members

First international exam in 2000

11

HQF Small foundation to support education,

leadership and certification Raise $12,000/year Grant $8,000/year

12

Current Issues Internal vs. external focus Diversity in customer base Changing role of quality in healthcare “Sweet spot”?

13

Warm-up Exercise

Can you name any of the top ten U.S. Industrial companies from 1910 (measured by size of assets)?

How many are still around today?

15

Why Do Great Entities Fail?

15

16

How do we make decisions? What is the problem? Are we independent?

16

GM’s Mental Model (circa 1968)

Key Assumptions• GM is in the business of making money, not just cars• Success flows from rapid adaptation, not

technological leadership • US car market is isolated from the rest of the world• Fossil fuels (oil) will remain cheap and abundant

• Government is an enemy and so are unions

18

What are your assumptions?

What are your assumptions about the future for NAHQ and the quality profession in general?

What could disrupt those assumptions

18

19

How do we make decisions?

What is the problem? Are we independent?

19

20

Which line equals the test line?

Test Line A B C

Asch’s Conformity Study

21

Democracy in America (1835, 1840)

“I know of not country in which...there is less independence of mind and true freedom of discussion than in America....As long as the majority is still undecided, discussion is carried on; but as soon as its decision is irrevocably pronounced, everyone is silent.”

- Alexis de Tocqueville

22

Four Components...

Data Driven

Clear Decision

Rules

Seek Optionsand

Discuss

K.M. Eisenhardt, et al, How Management Teams Can Have a Good Fight, HBR, Jul 1, 1997 

Ideal Group Process

23

Kleiner-Perkins “Balance Sheet”

Ideal Group Process (II)

Questions to Ask

What don’t we know that we should and can?

Are we framing too narrowly? Is some of our information slanted or

biased? What options do we have?

25

Protecting against Cognitive Errors

“Most errors are mistakes in our thinking. I learned from this to always hold back, to make sure that even when I think I have the answer, to generate a short list of alternatives...this simple strategy is one of the strongest safeguards against cognitive errors.”

-Dr. Jerome Groopman,How Doctors Think

26

Agenda

Introductions/Expectations-Overview of NAHQ/Membership

Decision “Traps” and the Association of the Future?

Core Elements of a Vision? Draft Vision for NAHQ Next Steps

Associations of the 21st Century

Traditional

Abundant

Wikinomics

Scarce

So

urc

e o

f F

un

din

g?

Level of Intermediation?

Scenario DScenario C

Scenario BScenario A

Slim Pickens

Wild, Wild West

Virtuality

Yesteryear

27

Ex #1: Association of 2015 10 minutes Individually, write down:

• What will be the general characteristics of NAHQ association members in 2015?

− Age ranges? − Top four (4) member professions?− Other demographic characteristics?

• What will they be seeking by joining NAHQ? Be ready to report out

Value of Visions Are clear and challenging--and about excellence Make sense and stress flexibility for a turbulent

environment Must be grasped when all else is up for grabs Prepare for the future while honoring the past Empower

Visions: Preserve core values, inspire change

Vision = Core Ideology + Envisioned Future• Core Ideology = Core Values + Core Pupose• Envisioned Future = Big Hairy Audacious

Goals + Vivid Description

source: Jim Collins

30

Examples of Visions

"FedEx is committed to our People-Service-Profit Philosophy. We will produce outstanding financial returns by providing totally reliable, competitively superior, global, air-ground transportation of high-priority goods and documents that require rapid, time-certain delivery." (Federal Express)

s) “To give ordinary folk the chance to buy the same thing as rich people.“ (Wal Mart)

32

Not so Good… Pfizer will strive to achieve and sustain its

leading place as the world’s premier research-based pharmaceutical company. The company’s continuing success benefits patients, customers, shareholders, business partners, families and the communities in which they operate all around the world. Pfizer’s mission is to become the world’s most valued company to all of these people.

Sony’s Vision Core Values

• Elevation of the Japanese culture and national status• Being a pioneer – not following others; doing the impossible• Encouraging individual ability and creativity

Core Purpose• To experience the sheer joy of innovation and the

application of technology for the benefit and pleasure of the general public

• Become the company most known for changing the worldwide image of Japanese products as being of poor quality

Henry Ford’s Envisioned Future BHAG

• “I will build a motor car for the great multitude.”

Vivid Description• “It will be so low in price that no man making a

good salary will be unable to own one—and enjoy with his family the blessing of hours of pleasure in God's great open spaces. ... When I’m through everybody will be able to afford one, and everyone will have one. The horse will have disappeared from our highways...”

Forging the Team Battle of Gettysburg, July 1-4, 1863 – the turning point

of the Civil War Chamberlain’s regiment (20th Maine) lost 70% of its

contingent Mutineers from the 2nd Maine Regiment have been

marched at gunpoint to Chamberlain’s command 20th Maine about to go into battle, guarding the

Union’s flank on Little Round Top

35

“The Terrain”

36

Ex #2: Forging the Team

10 minutes In your teams:

• How do you motivate the union deserters to join in the battle?

• What are the inspirational/practical reasons?

Be ready to report out

Core ValuesCore Ideology = Core values + Core purpose

If you were to start a new organization, would you build it around this core value regardless of the industry?

Would you want your organization to continue to stand for this core value 100 years into the future, no matter what changes occur in the outside world?

Would you want your organization to hold this core value, even if at some point in time it became a competitive disadvantage—even if in some instances the environment penalized the organization for living this core value?

Do you believe that those who do not share this core value—those who breach it consistently—simply do not belong in your organization?

Core Purpose ExamplesCore Ideology = Core values + Core purpose

3M To solve unsolved problems innovatively

Boeing To push the leading edge of aviation, taking on huge challenges and doing what others cannot do

Merck To preserve and improve human life

Nike To experience the emotion of competition, winning, and crushing competitors

Sony To experience the sheer joy of advancing and applying technology for the benefit of the public

Walt Disney To make people happy

Marriott To make people away from home feel they are among friends and really wanted

Mary Kay To give unlimited opportunity to women

McKinsey To help leading corporations and governments be more successful

WL Gore To have fun doing innovative things that make money

Patagonia To be a role model and tool for social change

WalMart To give ordinary folk the chance to buy the same things as rich people

Ex #3: Core Values/Purpose of NAHQ

Core Values: Individually, list the characteristics of the “ideal” future NAHQ member• Think of a specific individual…what are they like?

• What are their core values?• What are the core values of NAHQ that you will stick with

even if it hurts

Core Purpose: Complete or expand upon the following sentence...

• If NAHQ ceased to exist, what would the world have lost?

Be ready to report out

Ex #4: Putting the Elements Together

In your teams:• Putting all the previous ideas together, draft a

new Vision for NAHQ• Write it out on your flip chart

42

Strategic Objectives: Company XFocus on Growth

Commitment to Innovation

Leverage Global Structure

Drive Operational Excellence

Enhance Portfolio Management

Vision

Goals

To be the leading global company that enables medical miracles through innovative products

Achieve Strategic Plan targets of X% sales and Y% operating Income growth in a $10B category that is growing at 5-6%

Drive our transformation as a growth company by focusing on delivering innovative products to the market

Deliver against objectives through core and incubator strategy• Invest today to accelerate longer term growth

in incubator businesses• Delivering near term growth and bottom line

results in core businesses

Aspiration

Achieve $ZB in global revenue by 2011 and be seen as an innovative leader in the eyes of surgeons and patients

43

Ex #5: Summary/Next Steps In your teams, put together a list of:

• Key Actions from this meeting?• Critical next steps?

Record on your flip-chart and be ready to report out

Thank You!

Jim Austin

austinjh60610@yahoo.com

312-388-2750

44