Strategies for Success: Focus on Five Method to Achieving

Functional Balance

FINANCIAL PERSPECTIVES

Presented By:

Colleen Rudio, Chief Strategist

406.239.3547 colleen.rudio@cascadiabusiness.com

Review: Seek Functional Balance

Strategic Goals

Purpose Management

Process Management

Profit Management

People Management

Product & Service

Management

Awareness of desired change

Understanding of change direction

Commitment to the work setting

Action to change personally

Internalization of new behaviour

Information with some

involvement sufficient here

Significant

involvement

needed

Review: Understand Change Stages

Top Priority

Fully Supported

Painful and Costly

Threatening or Useful

Easy or Burdensome

QUESTION….What is your team’s view

on gaining financial perspective?

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FINANCIAL

CONSTRAINTS

ARE GETTING

TOUGHER…

TIME AND

AVAILABILITY

IS GETTING

SHORTER…

PATIENT AND

TEAM

EXPECTATIONS

ARE HIGHER…

So…what can we do about it?

Today we will

FOCUS on…

Defining

Understanding

Identifying

Designing

Mitigating

Balanced

Scorecard

The balanced scorecard is unique to

the organization, the people and the

industry. It is a strategic

performance management tool that provides performance direction or

serves as risk management.

Kaplan and Norton

Scorecard Purpose:

Understand Key Perspectives

• How do you increase value? Financial Perspective

• How do you appear? Customer Perspective

• How do you excel? Operational Perspective

• How do you improve? Growth & Innovation Perspective

Revenues

Costs (Fixed / Variable)

UN’s, RE’s, MIS’s

KPIs

Provider Support

Vendor Relationships

Team Performance

Lost Opportunities

Turnover / Low Morale

Unspoken Expectations

Scorecard Intention: Drive Results Below The Surface

Accounting Systems are accurate and timely. Accurate Numbers, Reliable Reports, Realistic Budget

Core Functions are properly aligned & efficiently

performing. Organizational Structure, Operational Flow, Lean Performance

Improvement Strategies are

clearly defined and assigned. Profit Initiatives, Continuous Improvement,

Resource Leveraging

Scorecard Assumption: Organizational Capacity to Perform

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Sample Balanced Scorecards

Success Factor: Know what to

measure and why it matters.

Key Financial Reports in all organizations Balance Sheet – presents an organizations financial position at

the end of a specified date.

Income Statement – shows the profitability of the organization for a specified time period (e.g. Month, Quarter, Year).

Cash Flows – reports the cash generated and used during the time interval specified.

Ratios and Industry Benchmarks – key performance indicators (KPIs), key ratios such as current ratio, debt to equity, turnover, etc. compared to industry and company trends

Gaining Financial Perspective

Financial statements are used by two types of users

Internal Users

Owners/Managers/Team

Manage income & expenses

Manage growth

Manage staffing

Analyze performance

Determining profitability

Future planning

External Users

Banks/Funding Sources

Shareholders/Investors

Vendors/Suppliers

Tax Preparers

Gaining Financial Perspective

Gaining Financial Perspective

How can you increase and measure value? Increase

Staff retention, cash flow, operating income by care unit, net patient

revenue, total ROI per improvement initiative, net profitability,

Reduce

Staff turnover and/or absenteeism, average hospital bed occupancy,

average patient discharge time, cost of care per patient, average

patient stay, cost per patient day, days for insurance reimbursement,

supply expense as a % of net patient revenue, total costs per hospital

bed, average employee cost, discharge delays

Improve

Total patient value, efficiency of care delivery, utilization of staff

resources, projected vs actual financial results, hospital discharge

success

Success Factor:

Integrate Versus Create

Budgeting Processes

Scorecard Systems

Workforce Management

Performance Management

Cost Management

Cash Flow Management

Profit Management

Inventory Controls

Efficiency Reviews

Workload Management

What are you currently

MEASURING?

How does it help increase

VALUE?

Is everyone AWARE of why it

matters?

Does everyone UNDERSTAND

how they can impact it?

Participant Activity:

Target Your Financial Perspective

Your ultimate challenge is often the

people...find value and build influence

from a different perspective.

•GET IT RIGHT

• GET ALONG

•GET EXCITED • GET IT DONE

Dominant Expressive

Analytical Solid

Get It Done: Dominant

Financial Perspective Strengths: Dominants see the end

results, measure value quickly, determine non are fast-moving, can

keep a group aimed in the right direction, see new ideas, get things

done fast, strong-willed, and goal-oriented.

Influencing KPIs: • Final performance-based outcomes

• Project’s return on investment

• Implementation pace

• Improved workflows

• Downtime reduced or eliminated

• Efficiency ratios

Get Excited: Expressive

Common Strengths: Expressives are enthusiastic, talkative,

outgoing and people-oriented. They have the ability to persuade other

people to work together and thrive on new projects.

Influencing KPIs: • Final performance-based outcomes

• Impact on team and/or patients

• Level of team engagement

• Team and/or patient satisfaction ratio

• Reduction in unnecessary workflows/steps

• Increase in talent utilized and/or skills gained

Get It Right: Analytical

Common Strengths: Analyticals are logical, detailed, highly

dependable, careful, and compliant. Decisions are made after researching

and they are very persistent in their problem solving efforts.

Influencing KPIs: • Final financial-based outcomes

• Project return on investment

• Cost vs benefit analysis

• Efficiency ratios

• Reduction of costs and/or resource allocations

(people, inventory, assets, etc.)

• Team and/or patient cost(s)

• Project completion on-time and on-budget

Get Along: Solid

Common Strengths: Solids are good listeners, seemed to be

“plugged in” to the work environment, agreeable and cooperative. They

focus on being a team player and communicate well in most situations.

Influencing KPIs: • Impact on team and/or patients

• Increase in care and/or service delivery

• Length of time/resources per patient

• Project cost(s) vs benefit(s)

• Team and/or patient satisfaction ratio

• Increase in talent utilized and/or skills gained

Success Factor:

Understand the Right KPIs Matter

Staff development and

training

Culture of accountability

by the numbers

Use KPIs to prove

team’s ability to set and

accomplish goals

Focus on

Communication

Measure without blame

Success Factor:

Build Team’s Financial Perspective

Here is where I am today?

Where do I want to be?

How do I begin to move?

What do I need to do next?

Who will be responsible?

What techniques will help?

What outside resources will I

need?

Participant Activity:

Achieve Functional Balance

Final Thought…Avoid Overloading

and Find “Your” Perfect Balance

Colleen Rudio, Chief Strategist

Colleen.rudio@cascadiabusiness.com

406.239.3547

Thank You!

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