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IT Essentials for Non-IT Executives Making IT a “Team Sport” April 12, 2015
DISCLAIMER: The views and opinions expressed in this presentation are those of the author and do not necessarily represent official policy or position of HIMSS.
Today’s Panel
Jim Adams, MBA Executive Director
Health Care IT Advisor Program The Advisory Board Company
Chad Eckes, MBA VP and CIO
Wake Forest University Baptist Medical Center
Edward Marx, FHIMSS, FCHIME Senior VP and CIO
Texas Health Resources
Conflict of Interest
Jim Adams, MBA Has no real or apparent conflicts of interest to report. Chad Eckes, MBA Has no real or apparent conflicts of interest to report. Edward Marx, FHIMSS, FCHIME Has no real or apparent conflicts of interest to report.
© HIMSS 2015
Learning Objectives
• Explain how to facilitate meaningful dialogue to improve decision making among IT and non-IT leaders.
• Outline actions required by non-IT leaders to maximize IT-enabled value.
• Identify critical knowledge areas and “must know”� IT-related topics needed to educate non-IT leaders to empower them to successfully fulfill their IT-related roles and responsibilities.
Four Perspectives on the Use of IT in Health Care 5
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
Many Organizations Moving to “IT-Enabled Strategies”
People and Process Change
Technology Change
IT as a cost to be minimized
IT as efficiency tool
IT-enabled strategies
IT-driven industry transformation
Books, Retail
Music
Long Distance
Transportation
Manufacturing
Agriculture
Health Care?
Going Beyond Enterprise Architecture 6
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
Optimization and Integration Require Alignment with Business Strategy
Stage Characteristics Potential Pluses Potential Minuses
Best-of-Breed
• Local autonomy • High degree of heterogeneity in systems, processes, and data
• Speed to value • Primary user functionality
• High IT costs • Poor data sharing and access
• Complex interfaces
Enterprise Architecture
• Infrastructure and application standardization
• Shared-services funding
• Lower IT costs • Improved security, reliability
• Faster to implement changes
• Loss of local autonomy • Suboptimal functionality for some areas
• Possible over-standardization (one size fits all)
Optimization • Enterprises benefits focus • Strong non-IT leadership with guidance from IT leadership
• Process and data standardization
• Appropriately standardized processes and data
• IT-related value
• Can create dissension among people using optimized systems and processes (everybody’s cheese gets moved)
Integration (Extended Enterprise)
• Extended enterprise focus • Clearly articulated strategy • Pieces / parts work well together
• Process coordination • Data access, analysis • Decision optimization
• Difficult to implement technically and culturally
• How to achieve both integration and agility?
The Future of IT and Health Care? 7
Source: Adapted by ABC HCITA from “Leading Digital” written by George Westerman, Didier Bonnet, and Andrew MacAfee; The Advisory Board Company Health Care IT Advisor research and analysis.
Very Few Provider Organizations are “Digital Masters”
Change in Health Care Industry
Change in Technology Capabilities
Technology Substitution
Status Quo
IT-Driven Health Care Transformation
IT-Enabled Strategies
Competing Visions for Technology and Health Care
• Accelerating or exponential change in technology
• No incumbents, new entrants, or substitutions disrupting the industry
• Accelerating or exponential change in technology
• Changes in business models and the basis for competition, in part due to technology
• Rate of change in technology slows considerably or stops
• Forces driving health care change pass
• Rate of change in technology slows considerably or stops
• Changes in business models and the basis for competition
Low
High
Low High
Multiple IT-Related Challenges 8
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
Cost pressures
1
Time pressures
2
More IT-enabled initiatives
3
Non-IT leaders not educated and empowered
6
CIO either not in the room or not at the table
5
Higher need and expectations for value
4
Personally, I am always ready to learn, although I do not always like being taught.
Winston Churchill
”
A classic is something that everyone wants to have read but nobody wants to read.
Mark Twain
”
Critical Area About Which CxOs May Know the Least 9
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
Finance HR IT
Why is it important?
What should it do?
What do I need to know and do?
How does it work?
Satisfactory Levels of Knowledge to Derive Value? Example of Functional Areas Supporting 3 Critical Resources
It’s hard to be a team player if you don’t understand the game.
! Translate strategic goals into specific CxO competencies.
!
Changing Question Marks to Checkmarks for IT
These Actions May Not Fix the Problem 10
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
Possibly Necessary But Generally Not Sufficient Examples of Actions Taken to Improve IT-Enabled Value
Action Taken Potential Benefits Potential Problems
Increase spending levels
Adequate funding for ongoing and new initiatives
Must first fix what is broken – e.g. governance, resources or capacity to change
Decrease spending levels
Short-term positive financial impact
Longer-term negative impacts on costs and competitiveness
Replace core systems More functional or user-friendly systems; better integration
Must be affordable and align with business strategy; change processes and people
Replace key IT leaders
Better skills or culture match
May be abdicating accountability for IT value
Outsource key components of IT
Improved performance or favorable pricing
Reduced agility; must first fix what is broken
Decentralize IT Distribute the “pain”; short-term stakeholder satisfaction
Increased spending; impaired standardization and integration
A Clear Need for Collaboration 11
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
Does Your Organization Have a Full CEO-CIO Partnership?
CEO • Align with and appropriately
shape a clearly defined enterprise strategy
• Support IT-enabled process transformation and organizational change management
• Manage demand and match it with the supply of IT-related resources
• Obtain funding for IT-related operations and infrastructure
CIO • Clearly define the IT-enabled enterprise
strategy and help implement the enterprise strategy for IT
• Lead IT-enabled process transformation and organizational change management; clearly define roles, accountabilities, and rationale for transformation
• Help prioritize demand; have justified confidence that the IT function and IT infrastructure are managed well
• Understand different funding approaches for different types of investments
Key Areas of Interdependence
Strategy
Change
Demand
Funding
CxO Education: “What Do I NEED to Know?” 12
Source: The Advisory Board Company Health Care IT Advisor research and analysis.
IT Must Be a “Team Sport” at All Levels
Possible Domains and Sample Topics for Basic Education
• IT capacity • IT cost management • Sourcing strategies
• Prioritization processes and criteria • Funding mechanisms and levels • Roles and responsibilities • Principles
IT governance is frequently the strongest predictor of value from IT-related investments. It is hard to govern what you don’t understand.
• IT for accountable care • IT-enabled PHM • IT for the retail environment • Meaningful Use • ICD-10 • EMR optimization • Business Intelligence
• Mobility strategies • Interoperability strategies • Cloud computing strategies • Privacy and security issues
Enabling Capabilities
Enabling Technologies
IT Operations Governance
Panel Discussion
Jim Adams, MBA [email protected]
Chad Eckes, MBA [email protected]
Ed Marx, FHIMSS, FCHIME [email protected] www.linkedin.com/in/edwardmarx Twitter: @marxists