Dr. Steve Pollock & Jyl HildrethDirectors Humana Enterprise Solutions

Daro Mott, PMP Chief of Staff

Innovation Applied to Internal ConsultingAIMC Conference – April 2015

1. Humana, Inc.

2. Louisville Metro Government

3. Q&A

Agenda

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Innovation loves challenges

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• Yearly innovation rate per U.S. citizen increasing

1800 1 per 175,000 2000 1 per 4,000

18701 per 7,000 19911 per 400

19551 per 1,35020051 per 250

“Put simply, we all have creative minds”…BUT, can we all be innovative?

How to Fly A Horse; The Secret History of Creation, Invention, and Discovery by Ashton, 2015

Patents

Copyright

Scientific Papers

Innovation is scalable

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• There are many options for applying innovation

“Choose the Right Innovation Method at the Right Time,” Furr & Dyer, Harvard Business Review December 31, 2014

WHAT Savorsurprises

DiscoverJob-to-be-

done

Prototypeminimumawesome

product

Validate go-to-market

strategy

SCALABLE INSIGHT PROBLEM SOLUTION BUSINESS MODEL

HOW

Creativity & Ideation

Open Innovation

Design Thinking

Agile Software

Lean Startup

Business Model Canvas

Innovation is not accidental

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• May look like your internal consulting approach

Where does innovative thought occur?How would one know it is OK to apply innovation?

Environmental Analysis• Problem• Scope • Internal Analysis• External Analysis

Methodologies• Hypotheses• Objectives• Timeline• Frameworks

Research & Analysis• Data Collection• Market Analysis• Current State• Best Practices

Recommendations• Analyze Options• Future State• Financial Issues• Roadmap

Action Plan• Change Mgt.• Resources Needs• Expected Results• Project Plan

Innovation operational definitions

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• Generating new ideas (AKA brainstorming)Creativity & Ideation

• Leveraging external innovation sources or releasing of internal innovations Open Innovation

• Visually showing data to solve problemsDesign Thinking

• Iteratively evolving requirements and solutions through collaborationAgile Software

• Changing quickly (build, test, learn)Lean Startup

• Strategically examining a business modelBusiness Model Canvas

Innovation helps change management

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Cost Quality Innovation

Often engagements emphasize cost or quality at expense of innovation

Cost Conscious

Quality Oriented

Leading with innovation spurs thinking that provides broad

value

CostQuality Innovation

CostQualityInnovation

“The Innovation Process and Quality Tools, ” Walker & Levesque, Quality Progress, 2007

Innovation challenges us

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“Profiling the Innovation Practitioner,” Bolton, ?WHAT IF! website

PEOPLE

Behaviors- Likes challenges- Makes things real- Avoids data analysis- Owns their mistakes- Loves their work- Relates to othersIs a Doer & Thinker

PROCESS

Types- Recruitment- Retention- Knowledge Mgt. - Engagement Pipeline- Engagement Delivery- Metrics & Reporting

TECHNOLOGY

Tools- Research- Analysis- Collaboration

Clients face challenges

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Environment of

Uncertainty

Strategy

Cost

Culture

Technology

Process

Learning

Combination of challenges requires

innovative responses

How to Fly A Horse; The Secret History of Creation, Invention, and Discovery by Ashton, 2015

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CREATIVITY vs. INNOVATIONhttps://www.youtube.com/watch?v=FXJUDyqobbM

“Applied Innovation” in Consulting

Innovation requires strategy

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What is our innovation approach?

When will we use innovation?

How will we make it safe to innovate?

How will we help clients support innovation?

How will we keep the process simple & flexible?

How will we know if “it” is working?

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Being innovative in a new world…

Consulting leads to Innovation

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Create

TryDecide

• Build process model• Integrate with Microsoft OneNote

• Try model and OneNote• Separate model and OneNote

• Refine OneNote• Iterate OneNote

• Refine process model• Iterate process model

Innovation tools critical

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Solution Card

Mind Mapping

Storyboard

Quality Tried-

and-True

Strategy Card

Innovation supports engagements

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1

Design a meaningfully unique Oncology Perfect Experience that partners with providers and members in their health journey which promotes ongoing improvements in quality, efficiency and affordability.

Oncology Perfect

Experience1

Re-Imagining

Engagement2

Re-Imagining Humana

Guidance Center’s4

Leverage research findings to develop new concepts and different approaches to increase member engagement.

Create a meaningfully unique Consumer Experience in the lab space while achieving optimal financial success.

Pathology/Clinical

Governance3

Optimize the use of the Health & Well Being Center’s through the duration of the lease. Past engagement efforts have been largely unsuccessful, so we are re-thinking the purpose and suite of services provided.

Team Capture

TRICARE Contract5 Evaluate core business processes to win 2017 TRICARE contract.

Innovation systematic approach is “key”

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• System Purpose– Provide tools and structure for facilitating

Applied Innovation • Major Components

– Session Scheduling - Tool for Applied Innovation Community to create, schedule, and invite participants to Applied Innovation Strategy and Solutions sessions

– Stimulus Submission - System for participants to submit session stimuli to be leveraged in spark deck presentations during sessions

– Innovation Assessment - System for surveying participants on their beliefs and overall perspective around innovation

– Innovation Pipeline - Innovation database with custom Strategy and Solution cards and the projects that align with each

Innovation lessons learned

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• Clients enjoy experience when process is simple

• Innovation may lead to transformative change

• Little training needed but access to innovators key

• Examples helpful for people to “get it”

• Innovation must be planned and encouraged

• Execution vital – not enough to have lots of ideas

Innovation suggested reading list

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• Ashton How to Fly a Horse• Blank The Startup Owner’s Manual• Furr & Dyer “Choose the Right Innovation Method at the Right Time” Harvard Business Review• Furr Nail It then Scale It• Furr The Innovator’s Method: Bringing Lean Start-up into Your Organization• Huff Leading Open Innovation• Lockwood Design Thinking• Michalko Thinkertoys: A Handbook of Creative-Thinking Techniques• Ries The Lean Startup• Ritter & Brassard’s The Creativity Tools Memory Jogger• Sims Scrum: a Breathtaking Brief and Agile Introduction• Skarzynski The Innovator’s Field Guide• Walker & Levesque “The Innovation Process and Quality Tools” Quality Progress

Thank you!

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Louisville Metro Jefferson County Government

Office of Performance Improvement Value Proposition

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THE MISSION

Mission. To help Louisville Metro Government become the best managed city government in the country.

Better than the BestOUR VISION

Every Louisville Metro Government employee is an agent of change capable of using data and best-in-class management practices to create the best city government possible.

BY THE NUMBERSOUR TEAM...• Nine Internal Consultants

• 1 World Class Consultant• 1 Aspiring City Manager• 1 Economist & Strategist• 1 Chemical Engineer• 2 PhD’s; 11 Master’s Degrees; 1

Statistician• 5 BSPs, 3 Black Belts, 2 Lean Leaders,

1 PMP, 1 PHR• Top 5 Strengths: Achiever, Learner,

Relator, Analytical, Focus

CAPABILITIES

OUR SERVICES...• Innovation• Management Consulting• Strategic Planning• Enterprise Modeling• Performance Management• Capability Building• Cross-Functional Team Facilitation• Data Analysis• Lean , 6-Sigma , & Project

Management Training and Certifications

• Sponsorship & Leadership Training• Performance Reporting• Business Solutions

Performance Improvement Merges w/ Innovation

Continuous improvement is an ongoing effort to improve products, services or processes-- American Society for Quality

The term “innovation” refers to making meaningful change to improve products, processes, or organizational effectiveness and to create new value for stakeholders-- Malcolm Baldrige Performance Excellence

Identify Opportunity or Challenge

Scope & Investigate

Generate Ideas

Prepare to Deliver

Deliver & Adapt Evaluate

Do we Innovate or Improve?

Identify Opportunity or Challenge

Finalize Problem

Statement & Set the Goal

Measure, Research and

Analyze

Generate Solutions

Prioritize and Pilot Evaluate

Innovation Process

Performance Process

The consultancy innovates if the nature of the opportunity or challenge is high impact with low knowledge

The consultancy innovates if the nature of the opportunity or challenge is high impact and internal knowledge

The business innovates when there is high impact and internal knowledge, scaling and implementing impact as appropriate.

The business innovates when there is high impact and internal knowledge, scaling and implementing impact as appropriate.

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•Chief of Performance & Technology is a Senior Leader•Both HR, IT & the Internal Consultancy report to herLeadership & Governance

•Embedded strategic monitoring and diagnosis into weekly meetings with the city’s senior executive leadership team

•Uses the Balanced Scorecard method to improve strategy Strategic Planning

•Deploys a citizen survey about city services•Learns and innovates from key customer segmentsCustomer & Stakeholders

•Opens performance of government to the public•Shares publicly owned data; creates enterprise dashboardsKnowledge Management

•Transformed employee onboarding to focus on the performance improvement system

•Internal consultancy deploys enterprise training fundHuman Resources

•Identifies critical business processes, benchmarks capabilities, competencies and tethers improvement to the root causes of gaps in performance

Process & Operations Management

•Helped improve safety, reduce absenteeism and hospital turn around times, restaurant inspections & overtime, etc.

•Numerous project outcomes and trained employeesBusiness Results

Examples of Improvement & Innovation

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Practical Examples

• Manages the performance and innovation system to help the city-government become the best managed city government in the nation

• Hosted the first Governing Summit on Government Performance and Innovation, critical for benchmarking

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Practical Examples

• The consultancy measures the performance of the entire organization and is both supportive and directive of improvement

• Leverages continuous improvement as a professional development opportunity and tactic to close gaps in critical business processes and competencies

Open discussion