Dr. Larry Hollier, Chancellor J Pegues, Vice Chancellor

Town Hall Meeting
December 2014
Dr. Larry Hollier, Chancellor
J Pegues, Vice Chancellor
Why?
Why Now?
What Have We Done?
What Have We Discovered?
What Have We Created?
What’s Next?
Why?
We have to know precisely where we want to go
and make sure the whole organization is
enthusiastically aware of where that is.
Because unless we know where we are going,
any road will take us there.
Why Now?
• Dramatically Changing External Environment
- Uncharted territory nationally, statewide, and locally.
- Unprecedented pressure on all aspects of health care.
• Answer the Questions “What is important and What is not?” and
“What do we have to be able to do in order to be successful in the
expected future environment?”
- Sharpen focus on and direct investments to what is important.
- Eliminate attention to what is not.
- Build advantages that will serve to differentiate us in the future.
• Structure and Align the Organization to the LSU Health of the Future.
• If We Don’t Know Where We’re Going, We’ll End Up Somewhere Else.
So, What Have We Done?
Establish a Shared Organizational Vision
First, You Need a Fram ew ork
Purpose
Core Values
and Beliefs
Guiding Philosophy
Mission
Expected
Future
Environment
Description
of Our
Future
Tangible Image
Shared Vision Gives Strategy A Foundation
Strategy
Situation
Analysis
Organization
Structure
Industry
Structure
Strategic
Objectives
Implications &
Alternatives
Shared
Vision
Competitive
Advantage
Mission
Purpose
Environment
Core Values
& Beliefs
Description
of Our
Future
Core Values and Beliefs
Purpose
Core Values
and Beliefs
Guiding Philosophy
Mission
Expected
Future
Environment
Vivid
Description
Tangible Image
Who Are We? What’s Important to Us?
Core Values
Beliefs
L
S
U
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
Core Values and Beliefs Don’t Change
• The 11th Commandment: Thou shalt not kill a new product
idea.
• We should always be the pioneers with our products – out
front leading the market. We believe in leading the public
with new products rather than asking them what kind of
products they want.
• We believe in good design in every aspect of our business.
• We believe that if you sell good merchandise at a reasonable
price and treat your customers like you would your friends,
the business will take care of itself.
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
Our Core Values and Beliefs
LSU Health New Orleans is dedicated
to Excellence in Patient Care,
Mastery in Teaching, and
Continuous Learning.
We believe in the relentless pursuit
of Knowledge and Discovery in order
to improve health care.
We are committed to Serving – our
patients, our students, each other,
and our communities.
All our energies should lead to
Improving Health and Wellbeing of
our patients and our communities.
Being part of this team is a
commitment to perform our duties
with Compassion and Respect for
others.
Everything we do should reflect
Professionalism at its highest level.
Being part of LSU Health New
Orleans is about Commitment:
• To the institution and its mission
• To our individual roles and
responsibilities
• To advancing the wellbeing of all
our stakeholders
We believe in going The Extra Mile.
Purpose
Purpose
Core Values
and Beliefs
Guiding Philosophy
Mission
Expected
Future
Environment
Vivid
Description
Tangible Image
Purpose – Our Fundamental Reason For Being
Why don’t we just shut the doors and sell off all the assets?
What would the world be missing if we did?
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
A Good Purpose Should Last At Least 100 Years
• “Our purpose is to organize the world’s information and
make it universally accessible and useful.”
• “We exist to help people with serious mental illness realize
their full potential.”
• “Our purpose is to make the world more secure.”
• “AT&T is dedicated to being the world’s best at bringing
people together – giving them easy access to each other –
anytime, anywhere.”
• “To make a contribution to the world by making tools for
the mind that advance humankind.”
Our Purpose
Our Fundamental Reason for Existence
LSU Health New Orleans exists to educate, to care for patients,
and to discover.
For these purposes, we ensure a continuous supply of trained Louisiana
health care professionals who will:
Provide patient care to their communities,
Train future generations of health care professionals, and
Lead in the discovery of medical and scientific breakthroughs.
Discover
Educate
Care for
Patients
Mission
Purpose
Core Values
and Beliefs
Guiding Philosophy
Mission
Expected
Future
Environment
Description
of Our
Future
Tangible Image
Mission
What Goal Are We Targeting? What Do We Want to Accomplish?
Should Release Our Passion and Clearly Focus Our Efforts
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
Mission – Your Big, Hairy, Audacious Goal (BHAG)
Walks The Boundary Between Possible and Impossible
• “Beat Coke.”
(1971)
• “Become a $1B company in four years.”
(1977)
• “Achieve the goal, before this decade is out, of landing a man
(1961)
on the moon and returning him safely to earth.”
• “Become the IBM of the real estate industry.”
(1969)
• “?” – LSU Health New Orleans, 2015
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
Our Mission
Our Big, Hairy, Audacious Goal (BHAG)
Mission 2030
LSU Health New Orleans will be the #1 health sciences university
in the Southeast, surpassing all other health science universities.
We will be #1 in student, faculty, and staff achievement.
We will be the #1 choice for residency training.
We will be #1 in patient satisfaction.
We will be #1 in Genomics-based research in the Southeast.
4
3
2
2
3
4
Vivid Description of the Future
Purpose
Core Values
and Beliefs
Guiding Philosophy
Mission
Expected
Future
Environment
Description
of Our
Future
Tangible Image
Vivid Description of Our Future
What Will It Look Like When We Get There? How Good Can It Get?
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
Vivid Description of Our Future
LSU Health New Orleans will be a central player in developing and delivering the
world’s best-trained health care professionals, and the best health care professionals
will want to work on our teaching, research, and clinical teams.
As a result of our matchless and consistent delivery of patient care and our services
that unfailingly exceed all expectations, LSU Health New Orleans will be the health
center of choice among students, faculty, patients, and researchers. We will receive
unsolicited testimonials saying, “You make me feel as though I am your only focus.”
We will be discovering solutions to the world’s most troubling health problems and
making meaningful contributions to the health of local communities around the world.
Our employees will take pride in their contributions to health care and feel this is the
best place they’ve ever worked, and LSU Health will be recognized as one of the best
organizations to work for in the Southeast.
In making all their health care decisions, people will ask, “Can I have access to LSU
Health?” And, when seeking health care and training recommendations, people will
frequently hear, “Insist on LSU Health professionals.”
Foundation In Place –
We Need a Strategy To Pursue Our Vision
A Path To Strategy
Strategy
Situation
Analysis
Industry
Structure
Organization
Structure
Implications &
Alternatives
Strategic
Objectives
Shared
Vision
Competitive
Advantage
Purpose
Core Values
& Beliefs
Mission
Environment
Vivid
Description
Situation Analysis
Examine both external and internal
environments for factors likely to have
material effect on our operations over
the next five years.
External Environment
• Changing Louisiana hospital landscape.
• Insured population expansion (PPACA).
• Growing consumer engagement in
health care decisions and choices.
• Continued move to outpatient and
non-physician care.
• Diminishing state funding for health
care.
• Emergence of preventative, genomicbased medicine.
• Clinical and information technology
advances.
A Path To Strategy
Situation
Analysis
Industry
Structure
Organization
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Situation Analysis
Internal Environment
• Uncertain ownership and usage of
ILH building.
• Diminishing funded research in key
areas.
• Deferred capital projects and facility
maintenance.
• Absence of annual merit increases’
effect on recruiting and retention.
• Absence of deliberate and systematic
brand management.
• Limitations of existing information
technology platforms.
A Path To Strategy
Situation
Analysis
Industry
Structure
Organization
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Industry Structure
Examine the set of fundamental
economic and technical characteristics
that rule a business.
• Who is leading the evolution of our
industry and where?
• What are the economies of scale?
• What are the entry and exit barriers?
• What are the mobility barriers and
are they increasing or decreasing?
• How are substitutions occurring?
A Path To Strategy
Situation
Analysis
Industry
Structure
Organization
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Implications and Alternatives
With understanding of the Situation
Analysis and Industry Structure in hand:
A Path To Strategy
• Determine implications to LSU Health.
Examples:
– We must buy, build, or partner opportunities to
grow our ambulatory care capabilities.
– Invest in and build personalized medicine
expertise and delivery capabilities.
• Surface alternatives for our responses.
Examples:
– Build multi-discipline, inter-professional LSU
Health practices in key locations throughout
the state.
– Create and launch LSU Direct Primary Care
model.
– Create and launch LSU Mobile Care model.
– Secure LSU Network participation in each
Bayou Health (Managed Medicaid) contractor’s
network.
– Launch LSU Tele-Medicine model.
Situation
Analysis
Organization
Structure
Industry
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Competitive Advantage
LSU Health’s competitive advantage will be a
combination of successful structural positioning
(that is, in markets, geography, technologies)
and focus on building specific capabilities.
A Path To Strategy
Situation
Analysis
Considerations:
• Largest, most comprehensive health sciences
center in the state; we have all the disciplines;
inter-professional education capability.
• Providers we train stay in this state. As such,
we have a huge, concentrated alumni base.
• Statewide geographically. We have access to
patients and community resources throughout
the state.
• Unique population (pathology / racial mix / comorbidities).
• LSU brand.
• Loyalty to LSU.
• One of two nursing schools in state offering
doctoral nursing degree.
Organization
Structure
Industry
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Strategic Objectives
With:
A Path To Strategy
• Mission in place.
• Situation Analysis and Industry
Structure understood.
• Implications and Alternatives surfaced.
We can establish our Strategic
Objectives.
• More immediate and concrete than the
Vision.
• Measurable, closed-end targets.
• Hurdles that directly motivate behavior.
• Near-term milestones we need to
achieve in implementing our strategy.
• General or specific (for example, to
secure at least two new funding
sources with $25MM multi-year
commitments by June 2015).
Situation
Analysis
Industry
Structure
Organization
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Organization Structure
Structure follows strategy.
– Alfred Chandler
• Key question is “How must we
structure and coordinate LSU Health’s
schools, systems, and processes in
order to realize the benefits of our
multi-market activity?”
• Structure must be derived from and
aligned with the competitive
advantage we are pursuing.
A Path To Strategy
Situation
Analysis
Organization
Structure
Industry
Structure
Strategic
Objectives
Implications &
Alternatives
Competitive
Advantage
Mission 2030
LSU Health New Orleans will be the #1 health sciences university
in the Southeast, surpassing all other health science universities.
We will be #1 in student, faculty, and staff achievement.
We will be the #1 choice for residency training.
We will be #1 in patient satisfaction.
We will be #1 in Genomics-based research in the Southeast.

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