Professional Documents
Culture Documents
How To Obtain Operational Effectiveness in The Health Care Arena
How To Obtain Operational Effectiveness in The Health Care Arena
Operational
Effectiveness in the
Health Care Arena
Would it help the health care manager to eliminate the frustration
of disorderly operations? To focus and fuel up the well meaning,
yet disarrayed team?...
Admin
|Dec 12| 14 min read
Would it help the health care manager to eliminate the frustration of disorderly
operations? To focus and fuel up the well meaning, yet disarrayed team?
Would it not, to put it simply, be nice to know how to develop, organize and
implement operations that propel the organization, rather than anchor it?
Indeed. Let’s see how.
What is Operational Effectiveness?
Any established set of business practices that enable an organization to
optimize how it functions – how quickly and successfully it does what it
intends to do – especially in comparison to competitors, is known as
Operational Effectiveness (OE), a term originated by Michael E. Porter at
Harvard School of Business.
An organization that enjoys OE is one that finds ways and means to perform
its business faster and better at a lower cost than other similar organizations.
Another way to state this is that OE will optimize the customer satisfaction at
the lowest possible cost to the organization.
Pillars of OE will include infrastructure (how resources are organized and
allocated), processes, performance and care delivery standards, regulatory
compliance safeguards, performance trackers and metrics, change
management, and performance improvement systems. The question, then, is
how to organize these components (and others) systematically so that they
serve as a firm foundation and a compass? We stand on firm ground; we
know where we’re going; we know how to get there.
Porter has described a four-part OE cycle:
1. Lead and control functional performance
2. Measure and improve processes
3. Leverage and automate processes
4. Continuously improve functional performance
In practice in the health care setting, these translate to: (see table below)
1. Manage, control and evolve individual and departmental performance:
develop and instill repeatable processes
2. Measure, track and improve processes
3. Optimize use of technology (and other resources) to enhance effectiveness
and efficiency of people and processes
4. Continuous improvement