Shared Values-Shared Results: Health as A Win-Win Organizational Philosophy Realizing the promise and Competitive Advantage of a: “Thriving, Healthy, High-Performing and Sustainable Workplace and Workforce” Edington Associates LLC June 12, 2015 ©2015 Edington Associates Questions to Address the Future State of Wellness What will be the Future State of Wellness and Well-Being (Build on our Strengths) 1. Maintain the course of Prevention, Wellness and Well-Being (Controlling risks and evolving to Quality of Life) 2. Evolution to The Clinical Man (Quantifiable Man/Woman) (Using wearable technology to report clinical and other measures) 3. Develop a Healthy Organizational Environment, Culture and Climate (Create a Culture and Environment where Health Thrives and Flourishes) 4. Evolve to a Shared Values-Shared Results: Health as a Win-Win Organizational Strategy/Philosophy Taking Health and Wellness to a Higher Level ©2015 Edington Associates 2 First Story 1978 to 2008 From The Unknown: (Risks to Costs Relationship) to Low-Risk - Low Cost (Zero Trends) Health as a Serious Economic Strategy ©2012 Edington Associates 3 Estimated Prevalence of Health Risks Health Risk Measure High Risk 41.8% Body Weight 31.8% Stress 28.6% Safety Belt Usage 23.3% Physical Activity 22.8% Blood Pressure 22.4% Life Satisfaction 14.4% Smoking 13.7% Perception of Health 10.9% Illness Days Existing Medical Problem 9.2% 8.3% Cholesterol 2.9% Alcohol 14.0% Zero Risk OVERALL RISK LEVELS Low Risk = 0-2 risks Medium Risk = 3-4 risks High Risk = 5 or more From the UM-HMRC Medical Economics Report Estimates based on the agegender distribution of a specific corporate employee population ©2012 Edington Associates 4 Excess Diseases Associated with Excess Risks (Heart, Diabetes, Cancer, Bronchitis, Emphysema Percent with Disease 100.0% 80.00% 80.0% 56.40% 61.40% 60.0% 25.30% 40.0% 20.0% 32.00% High Med Risk 9.50% 3.00% 10.50% 18.60% Low Risk 0.0% Less than 45 45 to 64 Greater than 65 Age Musich, McDonald, Hirschland, Edington. Disease Management & Health Outcomes 10(4):251-258, 2002. Range Excess Medical Costs due to Excess Risks $6,000 $5,000 Excess Costs Base Cost $4,000 $3,321 $3,000 $840 $1,261 HRA NonParticipant Medium Risk (34 Risks) $2,000 $1,000 $0 Low Risk (0-2 Risks) High Risk (5+ Risks) Edington, AJHP. 15(5):341-349, 2001 ©2012 Edington Associates 6 Cost increased Change in Costs follow Change in Risks $600 $400 $200 Cost reduced $0 -$200 -$400 Risks Reduced -$600 3 2 1 Risks Increased 0 1 2 3 Overall: Cost per risk reduced: $215; Cost per risk avoided: $304 Actives: Cost per risk reduced: $231; Cost per risk avoided: $320 Retirees<65: Cost per risk reduced: $192; Cost per risk avoided: $621 Retirees>65: Cost per risk reduced: $214; Cost per risk avoided: $264 Updated from Edington, AJHP. 15(5):341-349, 2001. Natural Flow: by Risk Status 2,373 (50.6%) 1,961 (18.4%) Medium Risk (3 - 4 risks) 1640 (35.0%) 4,546 10,670 (24.6%) (42.6%) 4,691 (10.8%) High Risk (>4 risks) 5,226 (12.1%) 678 (14.4%) 892 (3.2%) 11,495 (26.5%) 5,309 (19.0%) 4,163 (39.0%) 27,951 (64.5%) Average of three years between measures Modified from Edington, AJHP. 15(5):341-349, 2001 ©2012 Edington Associates 26,591 (61.4%) 21,750 (77.8%) Low Risk (0 - 2 risks) 8 Cluster Analysis Health Measure Smoking Alcohol Physical activity Safety belt usage Body mass index Systolic blood pressure Diastolic blood pressure Cholesterol HDL cholesterol Self-perceived health Life satisfaction Stress Illness days Overall Risks Low risk (0-2 risks) Medium risk (3-4 risks) High risk (5+ risks) Average Number of risks Cluster 1: Cluster 2: Risk taking Low Risk (N=6688) (N=3164) Cluster 3: Cluster 4: Biometrics Psychological (N=3100) (N=3927) 31% 10% 28% 36% 27% 9% 5% 19% 34% 13% 4% 9% 21% 0% 0% 0% 0% 25 % 0% 0% 19 % 10 % 0% 0% 0% 0% 16% 3% 19% 22% 38% 81% 61% 27% 33% 9% 2% 2% 12% 27% 5% 26% 31% 27% 23% 20% 22% 24% 28% 73% 76% 26% 50.2% 35.7% 14.1% 2.8 97.6% 2.4% 0 0.6 26.5% 48.9% 24.7% 3.6 18.9% 35.9% 45.2% 4.4 ©2012 Edington Associates Baunstein, Yi, Hirschland, McDonald, Edington. Am. J. Health Behavior. 25(4):407-417, 2001 9 Natural Flow of a Population by: Risks-Costs-Age Annual Medical Costs $11,909 $11,965 $10,785 $12,000 $8,927 $7,991 $9,000 $6,625 $5,710 $5,114 $7,989 $6,636 $4,620 $6,000 $5,212 $3,353 $3,800 $2,565 $2,944 $1,414 $3,000 $1,776 $2,193 $8,110 $3,734 Med Risk $2,740 Non-Participant $0 19-34 35-44 45-54 High $5,756 $4,613 55-64 65-74 75+ Low Age Range ©2012 Edington Associates 10 Edington. AJHP. 15(5):341-349, 2001 Learnings from the First 30 Years 1. Risk status is related to costs (pain and Suffering) 2. Excess costs are related to excess risks 3. Risks travel in clusters 4. Change in costs follow change in risks Controlling risks leads to Zero Trends IF people and organizations control and maintain their risks 11 The Promise of Zero Trends Zero Trends: Health as a Serious Economic Strategy (2009) required 30 years of complexity* to arrive at simplicity First Part of Zero Trends Do not get worse Help the low-risk stay low-risk Help the high-risk move to low-risk Second Part of Zero Trends Use the five pillars to move to a Culture of Health Engage Strategic, Systematic, Systemic and sustainable strategies Measure What Matters to the Organization and the People *800 articles and presentations, over $60M total revenue. From 2 to 34 staff per year ©2010 Edington Associates 12 Vision from Zero Trends Zero Trends provides a transformational approach Populations throughout the world live and work within a thriving, healthy, high performing and sustainable workplace and workforce Based upon over 900 Publications and Presentations 13 Second Story (Part A) 2009 to 2025 From “Low Risk-Low Cost:” Health as a Serious Economic Strategy To Individual and Organizational Health ©2014 Edington Associates 14 Business Strategy for Health ©2014 Edington Associates 15 Living and Thriving Assessment Supportive Community Individual Thriving Employee Supportive Family and Friends Supportive Workplace Living and ©2012 Thriving Assessment Edington Associates 16 What is SELF-LEADERSHIP? Self-leadership is the process of purposefully… engaging in change making thoughtful decisions having resilience which builds on strengths and is continuously learning and growing in thriving relationships © 2012 Edington Associates 17 Vision for Self-Leadership in Individuals Environment and culture Purpose, Values, Mission, Vision Personal Control Resilience Consumerism Engaged patient role Optimism Self-Leadership Confidence/ Self-efficacy Knowledge Health Literacy Negotiation Skills SelfEsteem Vitality/Vigor Low-Risks and Behaviors Social Support − Colleagues − Community − Family Other characteristics: Mindfulness, Integrity, Trust, Thrive, Enthusiasm, Ethical, Spiritual, Creative, Flexible, Gratitude, 18 © 2012 Edington Associates Fundamental Skills to Build Life Skills Positive Outlook Happiness Brain Health Values Purpose Vision Focusing on Strengths Positive Reframing Creating a Plan for Change Emotions & Intuitions Mental Shortcuts and Biases Environment Second Story (Part B) 2009 to 2025 From Individual and Organizational Health to Shared Values-Shared Results: Health as A Win-Win Organizational Philosophy ©2015 Edington Associates 20 Business Strategy for Health ©2014 Edington Associates 21 Thought Questions: A Game Changer for me Think about “healthy” individuals: • What words would you use to describe the most outstanding low-risk people you know? • Are all low-risk individuals the same? Think about “successful” companies: • What words would you use to describe the best of the workplaces you know? • Are all workplaces the same? ©2014 Edington Associates 22 Challenge for 2015-2025 How can we make today's positive outliers tomorrow's norm? What if anything will we do differently? ©2015 Edington Associates 23 New Knowledge Driving Future Trends in Health • The science behind thriving and positive outlook • New insights in mind-body connection • Forming good habits while replacing old habits • The impact of context: Environment, Climate, Culture and Social Support • Cultivating intrinsic motivation • Decision making, change, resilience • New methods, measures and metrics (ROI-VOI-VOC) ©2014 Edington Associates 24 Increase in “Positive” Disciplines Positive Psychology – Evaluation of positive emotion (the pleasant life), engagement (the engaged life), and purpose (the meaningful life). Positive Health – Examines positive subjective, biological, and functional health. Positive Neuroscience – Explores the neural mechanisms of human thriving and flourishing. Positive Organizational Scholarship – Study of positive outcomes, processes, and attributes of organizations and their stakeholders. Positive Leadership – Process of cultivating positive climate, positive relationships, positive communication, and positive meaning in work and overall life ©2015 Edington Associates 25 Redefining Success for Individuals and Organizations We imagine flourishing organizations whose criteria for success is about more than just power and wealth creation. Positive Organizational Health We see a world where healthy, thriving and high-performing individuals are engaged in high quality meaningful work, collaborating with creative and inspired colleagues in healthy, thriving and high-performing organizations where they feel supported, valued, and challenged. Positive Individual Health Win-Win Philosophy: Shared Values-Shared Results © 2014 Edington Associates 26 Three Major Themes ©2015 Edington Associates 27 The Promise of Shared Values-Shared Results Shared Values-Shared Results: Health as a Win-Win Organizational Strategy (2015) The Promise Employees and the Organization Share the Value of Health and Win-Win Philosophy Shared Values Shared Results Value of Health A Win-Win Strategy Employees Organization Employees ©2015 Edington Associates Organization 28 Holistic Model or Medical Model for Individuals Medical Model Holistic Model • Focus of Wellness (holistic) • Focus on Sickness (defects) • Focus on Strengths • Focus on Weaknesses • Focus on Wellness/Well-Being • Focus on risks and behaviors • Focus on appropriate stress • Focus on stress reduction • Focus on natural body weight • Reduce body weight • Build new competencies • Reduce Personal Weaknesses • Focus on top line revenue • Focus on cost-avoidance ©2015 Edington Associates 29 Integrated Dimensions of Health (Thriving Individual) ©2015 Edington Associates 30 Shared Values-Shared Results Healthy Foundations Pillar 5: Measure What Matters (Continuous Evaluation and Meaningful Feedback) Pillar 4: Recognition (Approaches that Build Intrinsic Motivation) Pillar 1: Senior Leadership (Collaborate to Create and Live a Shared Vision) Thriving Individuals Pillar 2: Positive Organizational Health Pillar 3: Positive Individual Health (Support Positive Outliers) (Create Conditions for Positive Outliers ) Aligned purpose, values, mission and vision Healthy Environment Healthy Climate and Culture Healthy Relationships At the Workplace At Home, and With Family, Friends In the Community ©2015 Edington Associates All stakeholders share value How both Employees and Employers Win with Shared Values – Shared Results Employees Organization Maintain health High energy levels Ability to do meaningful work Opportunity to grow and thrive Autonomy and creativity Adequate compensation Respect and recognition Safe and reasonable work design Positive relationships More Quality products and services Superior customer experience Appropriate employee turnover Appropriate absenteeism Appropriate productivity Innovation Profitability Great place to work Loyalty and enthusiasm More ©2015 Edington Associates 32 Measure What Matters ©2015 Edington Associates 33 Our Fundamental Belief We believe that everything that happens in an organization • impacts the wellness and well-being of the organization; • impacts the wellness and well-being of the individual stakeholders; and, • impacts the wellness and well-being of families and the community. ©2015 Edington Associates 34 Going Forward What’s The Point? ©2012 Edington Associates 35 Thank you for your attention Phone: 734.998.8326 (USA) Email: dwe@edingtonassociates.com jspitts@edingtonassociates.com acamilleri@edingtonassociates.com jmrichardson@edingtonassociates.com jeanettemay@edingtonassociates.com Website: www.edingtonassociates.com Address: Edington Associates LLC 1300 Bardstown Trail Ann Arbor MI 48105 ©2014 Edington Associates 36