the pmo: mission critical for the volume-to-value transition .pdf•acknowledge the critical role...
TRANSCRIPT
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The PMO: Mission Critical for the Volume-to-Value Transition
March 1, 2016
Heather Spyke, Director of PMO & Services, Children’s Healthcare of Atlanta
Bob Schwyn, Partner, The Chartis Group
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Conflict of Interest
Heather Spyke, MBA, PMP
Has no real or apparent conflicts of interest to report.
Bob Schwyn, MBA
Is employed by The Chartis Group, which provides services that are discussed
as a part of this presentation.
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Agenda
• Volume to Value: Industry Perspective on
the Changing Role of Project Management
• Children’s Journey
• Lessons Learned
• Q&A
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Learning Objectives
• Explain the value of formalized PMO functions and the critical role they
play in supporting the shift from volume to value and tightening budgets in
a post-EHR era.
• Describe how to implement a roadmap to improve the maturity of your
project delivery engine.
• Explain how to identify key factors to ensure consistent high-quality project
delivery.
• Identify the most useful lessons learned from this organization’s experience
and how these takeaways can be deployed in your own organization.
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http://www.himss.org/ValueSuite
Value of Health: STEPS
ATISFACTION
AVINGS
S
S
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Volume to Value: Industry Perspective on the Changing Role of
Project Management
• Children’s Journey
• Lessons Learned
• Q&A
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The Industry is Changing
The healthcare industry is in the midst of a multi-faceted shift that is fundamentally
changing the context in which providers are delivering care.
• The role of the provider is being
transformed and will continue to evolve
over the next 10 years.
• Business strategy and information and
technology strategy are increasingly
merging into one.
RISE OF THE
CONSUMER
STRATEGIC
IMPLICATIONS
TECHNOLOGY
ADVANCEMENTS
MIGRATION
TO VALUE
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Reorienting Care Delivery
The most successful organizations will reorient their system of care from a reactive illness-driven model
to one that creates value — for consumers and payors — by promoting and sustaining health.
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Where We Can Go
Relative
Value
Opportunities
IT
Savings
TOTAL OPPORTUNITY
Operations
Benefits
Clinical
Outcomes Enterprise
Gains
Illustrative Value Realization
Operations IT
Enterprise Strategy growth, partnerships, patient engagement,
population health, value based purchasing,
new models of care
Value
(ROI)
Relative Effort - Complexity of Change
Much of the
industry today
Clinical Transformation
Improvements to care delivery, effective capacity, evidence
based practices, and predictive analytics
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The Need to Expand Project Management Methodology
With a rapid industry shift towards value-based care,
organizations have an increasingly stronger need for more
efficient and effective project portfolios that are well
aligned with the business objectives and are
maximizing the value of IT investments.
Value Management
Project Management
Benefits Management
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Implementation Oriented Organization
• Technology is viewed as a solution to problems and a driver of processes.
• Business justification is provided up front and used for project approval only.
• Success is defined by projects being on-time and on-budget.
• Clinicians and staff members are engaged primarily for the implementation effort.
• Projects end at go-live and operationalization of technology.
Value Oriented Organization
• Technology solutions are viewed as a means to realizing productivity and quality gains in conjunction with process.
• Business objectives are identified for all initiatives.
• User and patient experience are measured and are a key indicator of success.
• Clinicians and staff members are engaged in continuous process improvement, and IS a partner.
• KPIs and metrics are used to drive accountability for sustained and continued value.
Orienting Toward Value
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3 Required PMO Practice Disciplines
VALUE
MANAGEMENT
PORTFOLIO
MANAGEMENT SPONSOR
MANAGEMENT
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Requirements Benefits
Planning phase and execution phase
deliverables
Value realization document
Documented SOP and training material
Validation of project results to the original
benefits outlined in the business case
document that are aligned with the
organizational business imperatives.
The Value realization document includes a plan
for measuring hard and soft benefits, such as
increased savings or improved customer
satisfaction.
Value Management
Value Management
Value Management is a process that spans
the full project lifecycle and may occur
months after the project is completed. Its
purpose is to determine, track and ensure
delivery of value in support of the
organization’s strategic initiatives.
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Value Management: Core Competencies
• Usability
Experience
• Quality
• Safety
• Financial
MANAGEMENT
PORTFOLIO
PROGRAM &
PROJECT DISCIPLINE
• Governance
• Change
Management
• Continuous
Improvement
• Outcomes
Driven
• IT Services
VALUE
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Requirements Benefits
Documented SOP and training material that
focuses on leveraging use of the Project
Portfolio Management (PPM) System.
Portfolio management will focus on reviewing
projects and programs and prioritizing resource
allocation to ensure alignment with
organizational strategies.
Portfolio Management
Portfolio Management
A portfolio refers to projects and programs
managed as a group to achieve strategic
objectives. Portfolio management refers to
the centralized management of one or
more portfolios.
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Portfolio Management
Portfolio management makes use of evaluation, prioritization, selection and ongoing optimization to achieve business value from IT investments.
Right Things
Done Well
Portfolio
Management
Program
Management
Project
Management
Value
Management
Source: Adapted from The Information Paradox by John Thorp. McGraw Hill 2003 and Val IT 2.0 Framework ISACA 2008.
Right Way
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Portfolio Management Focus
Valu
e Cost /
Complexity
L
H
L H
Ideal Portfolio Balance
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Requirements Benefits
Project Sponsor and PM self-assessment
plan to ensure continuous communication
throughout the project lifecycle.
Documented sponsor training material.
Stakeholders are engaged in project decisions,
execution, and addressing issues as they
occur.
Stakeholder satisfaction is managed as a key
project objective.
Sponsor Management
Sponsor Management
Sponsor management is a process of
continuous communication to understand the
needs and expectations of sponsors, which
may change throughout the project life cycle.
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Audience Polling: Are the demands for project delivery and quality increasing
more now as your organization shifts from volume to value?
• Yes definitely
• Just a bit
• Not sure
• Not at all
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Audience Polling: Do you believe the role of Project Management and the PMO in
delivering value to the organization will be more important in the
near future?
• Yes definitely
• Maybe a little bit
• Not sure
• Not at all
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Children’s Journey
• Volume to Value: Industry
Perspective on the Changing Role of
Project Management
• Lessons Learned
• Q&A
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The “Way We Were”
Heather Spyke
Director
Manager,
Implementations
Manager,
Implementations
PMO/EPM
Resources
(3)
Program Manager
Info Sec Project Managers
(9)
Manager,
PMO/EPM
Program Manager
Infrastructure
Manager
IS&T Resource
Allocation
Res. Mngmnt.
Resources
(4)
Project Managers
(5)
Project Managers
(4)
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Structured
Initial
Optimized
Managed
Institutionalized
Resource
Management
Project Intake
Schedule
Management
Issue and Risk
Management
Budget
Management
Change
Management
Reporting and
Communication
Demand and
Capacity
Management
Project Transition
and Closure
Benefits
Realization
Portfolio
Management No Established
Processes –
Limited/Basic
Management
Documented and
Repeatable Processes
Established
Efficient/Effective
Performance Measures
Where we
want to be Where we
thought we were
Where we
really were
The “Way We Were”
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Where We REALLY Were
• More mature in:
– Scope management
– Risk and issue management
– Schedule management
– Budget management
– Reporting
– Supplier management
– Portfolio management
– EPM support and usage
• Less mature in:
– Project resource management
– Project change management
– Value management
– Project quality management
– Sponsor management
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Where We Want to Be
• Good at core facets, not everything
• What are those facets?
– Project management
– Portfolio management
– Resource management
– Change management
– Project quality management
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Consistency
Simplicity
Measurable
Compliance /
Accountable
Balance
Action
Guiding Principles of This Project
Getting From Here to There
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Q1 Q2 Q3 Q4
Getting From Here to There
Initiate Hardwiring Drive Discipline & Rigor
Measure and Monitor The Project Portfolio
Enhance Value Discipline
Establish PMO Absolutes
Define roles and accountabilities
Initiate performance expectations
Expect progress and results
Reset customer expectations
Measure PMO Program progress
Launch performance dashboard (metric targets)
Monitor portfolio performance/risk
Improve PMO performance
Introduce strong business case requirements
Confirm benefits realization accountabilities
Focus on achievement of greatest returns
Define desired future state
Confirm critical project management expectations
Simplicity and consistency
Determine baseline targets
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Children’s Portfolio Management Focus – Illustrative
Va
lue
Complexity L
H
L H
CHOA.org Enhancements
Ambulatory Therapy
Plans
CIN Subspecialty
Measure Reporting
Epic Optimization for MCC
BCA Epic Downtime Module
Ambulatory Reference Lab
Authority Controls in
Epic for APPs
Electrophysiology Pruka
Upgrade
Day Rehabilitation Epic
Epic Report for
Audiology
o Barcoding – Blood
o Barcoding – Rx Admin ED
o Implement Security
Operations Center
Services
o API Upgrade
o CA UIM Phase 3
o SSO Upgrade-
Expansion
o XLTek Interface EPIC
Legend
Operational/
Routine Project
o Strategic Project
ASC Planning
o Anesthesia Machine
Replacements
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Getting From Here to There
Metrics:
• Strategic alignment improved
• Quality indicators
• Improved decision making
• PMO professionalism
• PM efficiency
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Where We Are
• Project status
– Project close out completed December 2015
– 100% objectives satisfied, 100% success criteria met
– 26 major deliverables accomplished – all but one were new
– 3 deliverables outstanding with plans to accomplish post-project
• Metric status
– Improved strategic alignment
Measures 2014 2015 Change
Strategy-Related Projects 15 23 + 53%
Total Strategy Budget $11,157,467 $16,339,996 + 46%
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Where We Are
• Quality indicators:
– Post-live support reduction
– Completed projects
– Hours devoted to Project Management
• Improved decision making:
– PMO insights available to all management
– PMO insights includes portfolio, program and project
– PMO insights includes resource management
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Where We Are
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Executive Dashboards
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Portfolio Dashboards
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Portfolio Dashboards
Program Dashboards
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Project Dashboards
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Portfolio Insights
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Program Dashboards
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Project Insights
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Portfolio Gantt
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Where We Are
• PMO Professionalism
• PM Efficiency – Automated Status Reports (ASR)
– 56% increase in timely project status reports (2014-2015)
– In month following ASR go-live:
• 2.6 day reduction in time between project updates
• 137% increase in risks logged/tracked
• 142% increase in Issues logged/tracked
• 61% increase in schedule planning
• 21% increase in projects with baselines
– Tracking of % complete, all project data, more accurate
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Project Exceptions
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Lessons Learned
• Volume to Value: Industry
Perspective on the Changing Role of
Project Management
• Children’s Journey
• Q&A
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Lessons Learned
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Lessons Learned
• What worked?
– Treating transformation as project
– Communication
– Buy-in
• Team
• Leadership
• What could have worked better?
– Focus and accountability after de-centralization
– All stakeholders on same page
• What was more challenging than we thought?
– Value management
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Take-A-Ways
• Acknowledge the critical role the PMO plays in delivering on the transition from volume to value for the enterprise.
• Obtain commitment and prioritize the value of an optimal PMO.
• Set clear expectations with leadership – educate, if needed.
• Understand current state and define future vision.
• Use industry best practices where possible.
• Measure the outcomes and communicate those results broadly.
• Treat the transformation as a project.
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http://www.himss.org/ValueSuite
Value of Health: STEPS
ATISFACTION
AVINGS
S
S
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Questions
Heather Spyke
(404) 785-7159
Bob Schwyn
(937) 243-2400