Management Lessons from Mayo Clinic
Management
Lessons from
Mayo Clinic
Practicing destination medicine
Dörthe Prestel
BUS 550 Minder Chen
May 24, 2011
Historical Background
Dr. William W. Mayo, settled in Rochester, MN, in 1863 sons, Drs. William J. Mayo and Charles Mayo, joined 1883 /1888
1893 patients came from 11 different states to receive medical care
1914 Mayo Clinic world's first integrated private group practice was found
3 campuses: Minnesota; Arizona; Florida
1983-2003: number of physicians & scientists increased from 838 to
2,700
Number of employees increased from 6,000 to 42,000
Patient care revenue increased from $345 mill to $4 bill
2003: 500,000 patients served at 3 campuses
How it works
Mayo clinic is not a single-specialty boutique but rather a department store of medical care capable of addressing virtually all medical needs from cancer care to cosmetic surgery to joint replacement or organ transplantation
Mission
To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research.
3 Key Principles
Continuing pursuit of ideal service, not profit
Continuing sincere concern for the care and welfare of individual patient
Continuing interest by every member of staff in professional progress
Human Resources
Top of talent pool: team players, commitment to high quality care and service, positive attitude, strong work ethic, understanding of cultural diversity
Hiring for life: behavioral interviewing techniques > extensive, expensive process
Employees are salaried, no incentive payments > unbinding self interest
Technology / Infrastructure 1
1907 implementation of medical records and MR numbers
1914 Conveyance systems to move medical records
1928 lifts and chutes system
Strategic investment of millions of dollars each year in industrial engineering
Technology / Infrastructure 2
Starting in the 1990s, in 2005 EMR replaced paper charts
In- and outpatient records are instantly available to Mayo caregivers via 16,000 computer terminals on site
7.5 million transactions processed between
8-9 am
Around noon up to 15 million transactions
Scheduling 1
Rapid growth in 1950s urged development of central appointment desk (CAD)
Initial system adopted from railway company Pullman
1950s: card system
1960s: telephony system replaced card system
Scheduling 2
1970s: computer technology with software ideas from Boeing and NASA to accommodate complex rules of Mayo schedulers establish time intervals between appointments and determine length of appointment types < using stop watches
2005: genetic algorithm system
Strategy
Branding a labor intensive services company
Health management is the key business strategy
- identifying population health concerns, targeting those issues proactively, and gathering the information needed to measure progress over time
Marketing strategy: customer and employee satisfaction, Facebook, and Podcasts
Collaboration
EMR, internal paging, telephone and video conferencing, physical spaces that encourage communication
Using cross-functional teams > using Six Sigma and Lean
net operating income increased by 40% in 3 years
85% of patients complete clinical itineraries in 5 business days
Radiology department reduced time per appointment by average of 6 minutes
Team Leadership Model
Physician-led institution: clinical practice, education, research
Physicians experience learning-by-doing leadership training at the clinic while practicing medicine
Physician leader + administrator = marriage
Administrative partner = management coach, confidant, reality checker, implementer
Balancing business-vs.-caregiving tensions
Teaching for tomorrow’s patients – its okay for highly trained providers to ask for help > strong collegial attitude
Destination Medicine
Each year 140,000 patients travel more than
120 mi to receive medical care at Mayo Clinic
Patients receive efficient, time-compressed care that can usually provide definite diagnosis and sometimes initial treatment – including major surgery – within 3 – 5 days
Scheduling system is backbone of destination medicine
Learning from Mayo 1
Customer demand is unevenly spread
Customer needs are diverse
Speed and accuracy are essential to performance
Multiple service providers contribute to customer’s service experience
Service chain is complex
Combining talent where its needed, encourage and enable internal communication, foster organizational competence
Learning from Mayo 2
Molding firm’s resources and talents to each individual customer
Practice “patience” hiring
Invest in systems that help employees practice well and encourage to teach coworkers
Continuously stress organizations core values
Candidates for organization designs like Mayo: high reliability organizations – atomic energy plants, aircraft carriers, petrochemical plants
Conclusion
Cutting edge advantage of Mayo – TIME!
Mayo clinic is constantly working on solving the customer’s whole problem, using technology to support values and strategy, and innovating with systems engineering
However, Mayo Clinic does not work flawless
– 85% success in their goals
How will they be affected by healthcare reform?
Quiz
Which of the following is NOT a success driving factor for Mayo Clinic?
a) b)
Strong organizational culture constant innovation c) d)
Time efficiency
Location of their campuses
Thank you for listening.
Works Cited
http://www.mayoclinic.org/rochester/?wt.srch=1&wt.m
c_id=google&keyword=minnesota_Mayo_Clinic_Mayo_
Clinic&campaign[...} http://bush.tamu.edu/nonprofitspring09/PresentionBerry.
pdf http://ftmba.tamu.edu/research/publication/951/
