Sector

10 Healthcare Innovations

The Harvard Business Review’s Health Care Innovations Insight Center has listed ten innovations it thinks could eventually improve healthcare (“Health Care of the Future,” Gardiner Morse, March 8, 2010).

Checklists. A checklist at Johns Hopkins Hospital required doctors to confirm, among other things, that they had washed their hands before inserting a central line. The 10-day line-infection rate went from 11% to zero. But getting people to use checklists can be a struggle.

Behavioral Economics. Nudge patients to comply with doctors’ orders, and nudge doctors to improve care.

Patient Portals. Patients could log onto their own secure portal to access and share their medical records, check lab results, renew prescriptions, deal with insurers, and communicate with doctors and nurses.

Payment Innovations. “Any hope of affordable, quality care lies partly in payment reform.”

Evidence-Based Decision Making. Electronic medical records should help doctors make better decisions based on the best evidence.

Accountable Care Organizations. The health reform bill includes plans for a pilot ACO whose job is to keep people healthy and out of the hospital and reward doctors and hospitals when they do.

Virtual Visits. Televisiting, a la Ellen Page talking to her doctor, who is in Denmark, in the Cisco ad.

Regenerative Medicine. “Stem cells…can potentially cure an array of devastating, once intractable conditions.”

Surgical Robots. The jury is still…

9Mar2010 | Steve George | 1 comment | Continued

The Best Way to Measure Company Performance

OK, I stole the title. John Hagel III, John Seely Brown, and Lang Davison posted on this very topic on the Harvard Business Review today. And then they spent the entire time dissing return on equity and touting return on assets in its place.

Hello? I understand the whole “business-exists-to-make-a-profit-and-nothing-else-really-matters” position, but are ROA or ROE really the best ways to measure company performance? I thought the balanced scorecard came along because our obsession with financial performance wasn’t working. Apparently, a lot of folks can’t stop obsessing.

Case in point: HuffPost Business. If you visited its home page today you would find articles on Goldman Sachs, predatory lending, Hank Paulson, the Treasury Department, AIG’s bonus cutbacks, robber barons, financial crisis, financial innovation, bank bailouts, Federal Reserve, credit card blacklists, financial reform, economic oracles, Citigroup, China, more on the Federal Reserve, home sales, jobs bill, dollar vs. euro, Greece bailout, still more Federal Reserve, etc. About the only articles on the home page that weren’t about money were about health care and fast cars.

It shouldn’t be HuffPost Business; it should be HuffPost Finance. And they’re far from alone. Pick any random site that purports to tell you what’s happening in the business world and you’ll find that 90% of their articles revolve around…

5Mar2010 | Steve George | 0 comments | Continued

The Real Heroes

Toyota’s front-page fall-from-grace has rivaled that of Tiger Woods, a business world parallel to the sporting world’s latest scandal. No wonder. Our business publications, from BusinessWeek to Fortune to Fast Company to the Wall Street Journal, weave their stories around the companies and executives who have risen to the top today. It is a cult of personality, no different than the teams and stars in the athletic world or the TV shows and actors in the entertainment world. We read about a company’s breakthrough performance or an executive’s startling turnaround and we place them on a pedestal and feel betrayed when they fall off.

They always do, of course. No company or leader can sustain performance excellence indefinitely. There are Baldrige Award winners that have failed after they received the Award, but so what? The Baldrige Award doesn’t guarantee unending success. It simply recognizes that, in the year it was received, that organization was one of the best-run organizations in the country. Next year, who knows? It’s like winning the Super Bowl one year (not that I’d know what that’s like, living in Minnesota) and expecting to win it next year and the year after, ad infinitum.

We’re focusing on the wrong thing. Baldrige Award winners have a lot to teach us about designing, managing,…

24Feb2010 | Steve George | 2 comments | Continued

The Top Innovative Companies

Fast Company has named The World’s Most Innovative Companies 2010. The top 50 companies were not selected by scientific process but rather by a committee that heard arguments for and against each candidate. As the editor states, “we amass and assess information on thousands of businesses, looking for creative models, far-sighted risk taking, and paradigm-busting execution.”

The top 20 most innovative companies are: (1) Facebook; (2) Amazon; (3) Apple; (4) Google; (5) Huawei–a Chinese telecom equipment provider; (6) First Solar; (7) PG&E; (8) Novartis; (9) Walmart; (10) HP; (11) Hulu; (12) Netflix; (13) Nike; (14) Intel; (15) Spotify–a European music-streaming site; (16) BYD–a Chinese car-and-battery maker; (17) Cisco Systems; (18) IBM; (19) GE; and (20) Disney.

That’s quite a variety of companies, from the “old guard”—Intel, IBM, GE, and Disney—to the “tech titans”—Amazon, Apple, and Google—to “green” companies First Solar and BYD.

Fast Company also identified the ten most innovative companies by industry, including consumer products, retail, technology, the Web, and consumer electronics.

It’s interesting to note that two-thirds of the 50 were not on last year’s list. As the chairman of HTC, ranked second in consumer electronics, said, “What you have learned is never enough.”

To read more about innovation, click on these articles:

19Feb2010 | Steve George | 0 comments | Continued

How Can You Stay on Top?

For years, if you wanted the highest quality car, you bought a Toyota. Ford, General Motors, and Chrysler floundered. Toyota’s reputation grew. The Toyota Production System was the poster child for Lean, for eliminating waste and shortening cycle times while improving quality in the process.

And then its goal changed from being first in quality to being first in global sales. A culture built on slow-and-steady, where teams were given months to find solutions and leaders spent years developing their capabilities, gave way to quicker product launches, faster plant openings, and rapidly expanding supplier networks. Customer started to grumble. Flaws appeared. Recalls tarnished a reputation that seemed indestructible.

The Baldrige Criteria ask how you create a sustainable organization. That’s not the same question as how you sustain a great organization, and based on results, you can’t, at least not indefinitely. Companies rise and fall. Some reach the top and dominate the landscape for years, even decades, but they, too, eventually lose the lead.

Why is that inevitable? The Baldrige model can help your organization achieve performance excellence and it can help you sustain it, but for how long? New owners and chief executives enforce new agendas, hungry competitors draw away customers, and markets, economies, and industries change.

So how can you stay on top?…

17Feb2010 | Steve George | 0 comments | Continued

Engaging Customers in a Digital Age

In a recent survey of businesses in the UK, mainland Europe, and the U.S., 62% of respondents agreed that differentiating their value proposition by customer service rather than by product was essential or very important (click here for the article). In fact, as customers, 74% said they were likely or very likely to buy more from a company as a result of service excellence that goes beyond expectations.

The Baldrige Criteria ask how you engage customers to serve their needs and build relationships. Engaged customers are loyal, do more business with you, and recommend your products and services to others, which is why more and more companies are taking steps to develop “very satisfied”—as opposed to merely “satisfied”—customers.

One obstacle to engaging customers, according to Pegasystems, which commissioned the survey, is the constraints imposed by legacy Customer Relationship Management (CRM) platforms. Only 43% of respondents can provide a consistent customer experience across all delivery channels. Part of the problem can be traced to the digital divide: legacy CRM systems don’t have the flexibility to adapt to differing requirements and can’t deliver a high-quality customer response to all customers.

I’m reminded of a story Michael Dell tells in Behind the Cloud by Marc Benioff and Carlye Adler. Benioff had told Dell about an internal networking technology…

15Feb2010 | Steve George | 0 comments | Continued

99% Above Average

Call it the Lake Wobegon effect after Minnesota’s very own Garrison Keillor, that fictional place where “all the women are strong, all the men are good looking, and all the children are above average.”

Only in this case, they’re not children: They are the chairmen of 722 nonprofit hospitals, and 99% of them think their hospitals fare at least as well as a typical hospital on standard quality measures, according to a survey published in Health Affairs. Even worse, 100% of the chairmen of hospitals that perform the worst think they are at least as good as a typical hospital. (“Only 1% of Hospitals Are Below Average,” Jacob Goldstein, WSJ Blogs, November 9, 2009)

It’s hard to know what’s most appalling about this ignorance:

  • The chairmen don’t know how their hospitals perform on standard quality measures, information that is available to anyone on the Internet.
  • The chairmen don’t know what “typical” performance is—also available on the Internet.
  • No one has bothered to share this information with the people who bear some responsibility for their hospitals’ performance or, worse yet—
  • The chairmen don’t care.

The Baldrige Criteria ask how you evaluate the performance of your board members. I would add questions about how the board reviews the hospital’s quality performance to that evaluation. The Criteria also ask how you…

12Feb2010 | Steve George | 0 comments | Continued