The Transformed Map of a Recovering Management Accountant

Deming Institute

We call this approach Professional Management, and have developed a system to implement it influenced by Dr. W. Dr. Tom Johnson, an economist and self-described “recovering management accountant,” is well known for his early contributions to the traditional accounting profession. Kaplan, and Relevance Regained , focused on improving the information available to management accountants. The focus must be on managing work activities as components of an ecosystem.

A Closed-Loop Strategy Execution System

Six Disciplines

Breakdowns in a company’s management system, not managers’ lack of ability or effort, are what cause a company’s underperformance. By management system, they're referring to the integrated set of processes and tools that a company uses to develop its strategy, translate it into operational actions, and monitor and improve the effectiveness of both. By creating a closed-loop management system, companies can avoid such shortfalls.

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A Closed-Loop Strategy Execution System

Six Disciplines

Breakdowns in a company’s management system, not managers’ lack of ability or effort, are what cause a company’s underperformance. By management system, they're referring to the integrated set of processes and tools that a company uses to develop its strategy, translate it into operational actions, and monitor and improve the effectiveness of both. By creating a closed-loop management system, companies can avoid such shortfalls.

Health Care Providers Need a Value Management Office

Harvard Business Review

Many health care organizations today are striving to deliver better patient outcomes at lower cost and to be rewarded for accomplishing both. Most have begun this journey with pilot projects to obtain valid measures of outcomes and cost for one or two medical conditions. A “value management office” can greatly enhance an institution’s ability to improve outcomes and costs across the enterprise. Expand from process excellence to population management.

Do You Know What Your Company’s Data Is Worth?

Harvard Business

In the same way that banks must constantly balance assets and liabilities, data-laden firms need to move from cyber-defense and fire-fighting toward more proactive management of what could prove to be their most important asset. In 2015, Lloyd’s (the world’s specialist insurance market) estimated that cyber-attacks cost businesses as much as $400 billion per year , which includes direct damage plus post-attack disruption to the normal course of business.

Lessons from Mayo Clinic’s Redesign of Stroke Care

Harvard Business

Facing escalating costs of medications and technology, health care patients and providers in the United States continue to search for opportunities to reduce overall costs while maintaining and improving health care outcomes. At the Mayo Clinic Comprehensive Stroke Center Practice, we conducted a project to design and deliver care more customized to the needs of individual patients while reducing cost and resource constraints. David Pereiras/Getty Images.

Mayo 28

How Hospitals Are Using Patient-Reported Outcomes to Improve Care

Harvard Business

Dr. Niazi’s team has used Time-Driven Activity-Based Costing to prove that this program is cost effective, and is currently collecting data to assess its impact on patient outcomes. In collaboration with Dr. Heidi Crane at the University of Washington, he built a model that can reveal suicidal ideation based on outpatient survey answers and coordinate a response to it. Phil Ashley/Getty Images.

Mayo 30

The Mayo Clinic Model for Running a Value-Improvement Program

Harvard Business Review

In the last six years, a Harvard Business School team has worked with dozens of health care organizations to help them understand the true costs of their treatments for many medical conditions. These efforts were part of the providers’ quest to increase the value of their care delivery — in other words, achieve better outcomes at the lowest-possible cost. measure both costs and outcomes for comparative analyses of care variation. Measure outcomes and costs.

Delivering Higher Value Care Means Spending More Time with Patients

Harvard Business Review

Unfortunately, the same problem often arises when physicians manage the care of patients with chronic conditions such as diabetes, heart failure, and kidney disease. Pressuring physicians to maximize the number of patients they see and minimizing the time they spend with each is one of five counterproductive mistakes that health care providers often make in trying to reduce costs — the subject of a recent article in the Harvard Business Review.

There's a Way to Win the Showdown with Your Customer

Harvard Business Review

Product "rationalization" is all well and good, but you've probably already figured out that it puts you, the sales manager, in a serious bind. Then along came a wave of tools such as activity-based costing for figuring out each product's value to the company, and a lot of those offerings got washed away. And for good reason: Some of them were costing your company a bundle and weren't paying for themselves. You've reduced your company's cost-to-serve.

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Measuring and Communicating Health Care Value with Charts

Harvard Business Review

Some leading proponents of health care reform have argued that the goal of any health care system should be to deliver the most value to patients : the outcomes achieved for treating a medical condition relative to the costs incurred over a complete care cycle. We have found that a radar chart is an effective means to visually depict outcome and cost data simultaneously. Measuring Costs and Outcomes in Healthcare. Operations Operations management Pricing Healthcare Article

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Getting Bundled Payments Right in Health Care

Harvard Business Review

Bundled payments — single payments that cover all the care for a patient’s medical condition or treatment over a specified timeframe — are increasingly being deployed to motivate the delivery of better patient outcomes at lower costs. They have successfully used bundled payments to capture the value created by cost-effectively delivering superior patient outcomes. Data on Outcomes and Costs. Proactive Management of Patients.

Intelligent Redesign of Health Care

Harvard Business Review

The health care industry has survived economically by cross-subsidizing margin shortfalls in one activity with the revenues generated from others. As we move forward we need to be mindful of two principles that must be at the heart of any fundamental health care reform: “no margin, no mission” and “if you can’t measure it, you can’t manage it.” Specifically, the center wants estimates of: The costs of caring for groups of patients with similar conditions.

Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

Tommy was a director and Jane was the Midlands regional sales manager for Egan & Sons, a supplier of doors and staircases to Westmid for 63 years. The Power of Customer Costing. With careful study, Tommy had figured out that the company's costing system had made it blind to its own operations: It allocated factory overhead to products as a percentage markup over direct labor costs, and corporate overhead as a percentage of sales.

How to Design a Bundled Payment Around Value

Harvard Business Review

The traditional fee-for-service reimbursement model is widely acknowledged to be a major driver of escalating health care costs. It also penalizes cost reduction since eliminating unnecessary procedures leads to lower reimbursements. Bundled payments (BP) have the potential to reward providers that deliver more value to their patients — better outcomes at lower costs. Estimating Costs.