Performance Management is an enterprise-wide program that provides a structured approach for achieving an organization's strategy in a consistent and continuous manner.
A Performance Management program gives an organization the capability to effectively communicate its strategy and to ensure that business processes and people are aligned to support the achievement of that strategy. When fully deployed, Performance Management transforms strategic planning from an academic exercise into the nerve center of an enterprise.
The ExactCost Performance Management Framework© encompasses the five key ingredients necessary to achieve breakthrough results in performance management.
These five ingredients include:
- Enterprise Strategy
An organization needs to have a clearly articulated strategy that includes mission, vision, values, strategic objectives, and market differentiators. The strategy represents the destination everyone in the organization is attempting to reach. The rest of the framework provides the tools needed to insure each entity within the organization steers toward the same destination with the least amount of effort and cost.
- Performance Management Process
A performance management process is simply a means to analyze your operations, identify opportunities for improvement, develop changes that address the opportunities, and monitor the effectiveness of those changes. The ExactCost Performance Management Process© utilizes the methodology called “Activity Based Methods”. Activity-Based Methods apply the fundamental principles of Activity-Based Costing (ABC) and Activity-Based Management (ABM) to optimize performance. ExactCost solutions fully implement the fundamental principles of the ABC and ABM approach to cost management for use by healthcare managers - providing an effective interface between strategic decision-makers and operational management. These tools highlight the relationship between the things we do everyday and the resources required to successfully serve the needs of our patients. Equipped with this information, a departmental manager can identify, and act on, improvement opportunities.
- Performance Management Infrastructure
The complexity of healthcare requires technology that can define precisely define actual resources consumed at the activity level. The ExactCost solution is a powerful state-of-the-art computer system that comes to an organization pre-populated with the activities and resources identified at the procedure and workstation level. With the ExactCost technology, you can dissect the process and cost for a CT-Scan w/wo contrast on the Siemens 64 slice in room 1 with little to no on-going maintenance.
- Performance Management Culture
The most ignored yet lethal ingredient of performance is an organization's culture. Simply dictating that your organization will improve, or worse, buying a computer system or training program from a consultant and believing that everyone will get in line to achieve improved performance, is a fantasy that continues to play out in the healthcare industry. The culture of healthcare is centered on the patient. Reducing cost and improving throughput to improve patient care conflicts with every principle and belief system in the healthcare industry. This is why ExactCost incorporates cultural change management as part of our framework. Our tools can only work if the people, who have the ability to achieve performance improvements, use the tools.
- Balanced Measurement System
Improved performance doesn’t happen by accident. It requires robust tools, state-of-the-art technology, and above all, continuous monitoring and improvement. This requires a measurement methodology that provides a 360o view. The “ExactCost Balanced Measurement System©” is designed to provide continuous monitoring of your operating departments performance while minimizing the adverse affect of a single measure that could place your organization in jeopardy. Our approach includes four key measures including Cost, Quality, Customer Satisfaction, and Learning.
