EMBRACING TRANSFORMATION
– SUSTAINING OUR MISSION
ROCKLON B. CHAPIN, FACHE
BHS PRESIDENT/CEO
BHS = 30!
Do you remember turning
30?
or
What would turning 30 be
like?
“oh joy!?! …now I have to
be a grown-up…”
(end of youth)
or
“oh joy!?! …now I get to be
a grown-up!
(beginning of life)
2015 in Review
• Workforce Challenges
• Community CEO and DON Turnover = 7 & 13
• Demand Shifting Away from SNF
• The Four Initiatives
– Funding the Journey
– Winning in the Medium Term
– Establishing Right Team, Organization and Culture
4
2015 in Review
• Financially Challenged
• Leadership:
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Expanded SMT to include Clinical, Quality, Technology
New SVP, Community Engagement & Innovation
New COO
New VP, People Development
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2015 in Review
• New Brighton to Shoreview = CBO!
• Innovation Discussions Continued
• Projects
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Interlude
Small House Memory Care at Madonna
The Summit by Madonna Towers: Byron, MN
St. Gabriel’s Housing Development
• Our Dashboard
Results!
– 5 Star/Pain/Falls/Re-hospitalization/Satisfaction
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Vision for BHS and the Industry
“DON’T DICTATE A VISION – SET A GRAND CHALLENGE”
“If we ask you to think of a leader setting a grand innovation challenge, what
might come to mind is some story about Steve Jobs – maybe the one in which
he challenges his team to put 1,000 songs in your pocket.
That’s not what we’re talking about here. Nor are we talking about setting a
vision the way traditional leaders do, by laying out the company's strategic
priorities. Both approaches imply the leader’s role is to decide what to do and
then direct the organization to do it.
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Vision for BHS and the Industry
“DON’T DICTATE A VISION – SET A GRAND CHALLENGE”
Innovation is at heart a process of discovery, and so the role of the person leading
it is to set other people down a path, not to short-circuit it by jumping to a
conclusion right at the start. To lead innovation you don’t need to be the next
Steve Jobs, nor do you need to guess the future. Rather, you must carve out the
mental space within which the innovation process can be carried out.”
From: Leading Your Team into the Unknown, Furr & Dyer
HBR December 2014
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CEO’s “TRIPLE AIM”
Fall 2013
• Standardization
• Innovation
• Seek “Big Deals”
Summer 2015
• One BHS
• Innovation
• Strengthen “Brand”
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A Grand Challenge – “Filling it in…”
• Industry/Sector Factors to Consider
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Inadequate Workforce Across the Spectrum
Downward Trends in Reimbursement
Increasing Regulation Across Continuum
Disruptive Technology and Service Offerings
Market Demand is Moving to Alternative Settings
Consolidation of Providers
Financing Models Changing
Competition Becoming More Aggressive
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Strategic Context – a “Picture Frame”
Transformation: The Imperative to Change
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Funding the Journey
Winning in the Medium Term
Establishing Right Team, Organization and Culture
There’s No Such Thing as Corporate DNA
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Restructure:
• Portfolio
• Organization
• Team
Nothing is Sacred – Only Your Stakeholder Relationships Matter
• The heart and soul of your company is defined by your relationships with employees,
customers, suppliers, investors and communities
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The “New” BHS?
• Portfolio
– Services and Products?
• Organization
– Business Model
• Vertically or Horizontally Integrated?
• Operating Company?
• Management/Consulting Company?
• Team
– Talent Mix for Tomorrow?
•
Clinical/marketing/technology/people development/systems and process
management, other?
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The “New” BHS
• Growth through “Vertical” (with Health Systems) and/or “Horizontal”
(with Sr. Services Providers) Integration?
• Upper Midwestern Service Area?
– “Competitive Markets” Focus (30K+ Population)
• Benedictine Living Communities (#>50@<8%)?:
– Peri-Acute Care (includes “@Home,” AL, IL, SNF & PAC)
– Affordable Housing
– CCAH/CCRC
• Management/Consulting Services?
• The Catholic “Expert” for Senior Care Options?
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The “New” BHS
• “Cooperative” Membership (AAA/AARP+ for Seniors and their
caregivers) =“Connections for Life”?
• Comfortable with “Bundled Payment” and Acceptance of Risk?
• Robust Internet Portal for BHS “Members” = “New Front Door”?
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Residents
Guests
Tenants
Clients
Families & Advocates
Associates
Partners
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Care Pillar Desired State
Current
We guide our associates, residents and
guests to optimal health and wellness by
providing exceptional care and services
utilizing effective technology and practices.
Proposed
By 2020 we will have increased our clinical
capacity resulting in a higher level of care,
focusing on a range of clinical needs that
include:
• Dementia/Alzheimer’s
• End-of-Life Care
• Post-Acute and Transitional Care
• Chronic Disease Management and
Palliative Care
15
Service Pillar Desired State
Current
Guided by our Mission and
Core Values, we create
trusting relationships with
those we serve through our
commitment to exceptional
care and service.
Proposed
By 2020, grounded in our Mission
and Core Values, we will have
defined and implemented the
“BHS experience” to provide a
unique and memorable encounter
for all we serve.
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People Pillar Desired State
Current
We engage, empower and equip
Compassionate professionals to
help those we serve live fully and
live well.
Proposed
By 2020 we will provide
personalized development plans
and activities for all associates
that enhance their personal and
professional commitments to
quality and engagement.
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Finance Pillar Desired State
Current
Proposed
We sustain this ministry by
operating efficiently, prudently
managing resources and providing
services that meet the changing
needs of our associates, residents
and guests.
We will support sustainable growth
through consistent operating
margins and our ability to manage
risk across all settings (Bundled
payments and PMPM.) Our needs
for investments in technology,
growth and innovation will be met
by the BHS Strategic Capital Fund.
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Growth Pillar Desired State
Current
Our communities grow as we
partner with those who share our
vision, values and commitment
to living fully and living well.
Proposed
By 2020 BHS’ growth has occurred
through creating partnerships with
providers of senior services and
health care. In addition, we will
have expanded our presence in the
home, and in housing with services
(assisted living and independent
living apartments and townhomes.)
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Technology Pillar Desired State
Current
We will maximize the effectiveness
and efficiency of care and service
through the use of integrated
technology systems
Proposed
By 2020, BHS investments in
technology will have focused on
improving consistency of services
delivery, reducing data entry by
associates and partners, facilitating
analysis of data and providing
instant access to information
needed by associates, partners and
those we serve.
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Innovation Pillar Desired State
Current
Collectively, we will apply
innovative thinking and processes
to transform the care and service
we deliver.
Proposed
By 2020, BHS will have worked
with partners to streamline
education and training programs
that help associates develop and
grow their capacity to help those
we serve “live fully and live well.”
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Confidence (with a “C”!)
• We have 30 years of preparation
• We are beginning to focus on the people we serve and
the people who serve
– Regional Support
– Training and Development Initiatives
• Clinical and Leadership
• Clarifying roles and responsibilities across all of BHS
22
Confidence (with a “C”!)
• BHS Board is changing with new members and creation of a
Strategy Committee
– Sr. Beverly Raway, Prioress
– Dr. Dean Fox, Chair
– Quality Committee to add Physician and Health Information
Management expert
– New Members: Dr. Dan Zismer & Jerry Carley
• Planning underway to establish a “Center for Aging and Innovation”
with St. Catherine’s University and Presbyterian Homes and
Services.
23
Confidence (with a “C”!)
• Chartered new operating committees to guide
development in 2 key areas:
– IT Steering
– Purchasing
• Moving away from “Management Holding
Company” Model to “Operating Company” Model
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Confidence (with a “C”!)
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Confidence (with a “C”!)
• Management/Holding
– Focus on Managers &
Opportunities
– Strategy
– “What’s Best for Me?”
– High Variability Accepted
– B2B Brand is Key
– Quality Results
• Operating Company
– Focus on Customers &
Associates
– Execution
– “What’s Best for Us?”
– High Consistency Required
– B2C Brand is Key
– Quality Results
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Confidence (with a “C”!)
• “One BHS” is more than a phrase (or a three ring binder!?!)
– The “BHS experience” is REAL for those we serve and those
serving
– Training and Development of associates is a clear priority
(with a budget to match!)
– Specific key processes that deliver consistent results are used
across BHS
– Our information helps us consistently improve and provides
tangible proof of our value
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Confidence (with a “C”!)
• BHS may only be 30 years old, but its
Commitment to Serve goes back nearly
1500 years to a community who believed
that we exist to serve others as though
Christ. We are doing work that is Sacred.
Let us not forget!
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Go in peace to
love and serve
others in the
name of Christ!