How to use Organization Values
to Achieve Mission Alignment:
The OSF HealthCare Story
Presented by:
James G. Farrell, MBA
Senior Vice President
Marketing & Communications
OSF HealthCare
Helen Carol Krewson, MS, SPHR
Lead Consultant
Morehead Associates
AGENDA
Introductions and background for study
Why the focus on values
Values as mission drivers at OSF
Employee perceptions of performance
Using key driver analyses to measure
alignment
• The role of the leader in modeling the
way
• Ensuring accountability at every level
• Summary: creating a values-driven
culture
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About Morehead Associates
Morehead Associates specializes in conducting employee
opinion surveys and research that increase employee
engagement and commitment and help you:
• Improve business results through effective change
management
• Reduce turnover
• Identify which employee groups are vulnerable to labor
relations issues
• Impact financial performance through employee
engagement
Since 1979, our surveys have given leading organizations data and
tools to drive business outcomes like employee commitment,
quality, customer satisfaction, public trust and profitability.
Morehead has surveyed over six million healthcare employees
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About Morehead Partnerships
Our clients know how to—
• Use human capital metrics to improve organizational performance
• Build employee engagement during times of uncertainty
• Develop and retain key talent
• Focus on minimizing turnover as a long-term strategy
• Manage labor relations in a dynamic environment
• Sustain key human capital initiatives
Taking the uncertainty out of managing human capital through:
• Employee
Opinion
Surveys
• Physician
and Faculty
Surveys
• Exit and
Onboarding
Solutions
• Retention
Solutions
• Specialized
Research
Services
About Morehead Associates
Our clients include—
• Over 50 ANCC Magnet-designated nursing facilities
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•
•
38% of U.S. News & World Report’s ―Honor Roll Hospitals‖
43% of Child Health Corporation of America
organizations
53 University HealthSystem Consortium organizations
Morehead has surveyed over six million healthcare employees
5
Morehead/OSF HealthCare Partnership
• Began in 2001 with full system survey
• Intent to measure ―systemness‖ and support cultural and
leadership development
• Full survey of all entities every 24 months
• Interim ―pulse‖ survey for lower performing entities/work
units
• Performance target: top decile of Morehead’s database
About OSF HealthCare
OSF HealthCare is a multi-state corporation operating in IL and MI with:
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•
•
•
7 acute care hospitals
1 long term care facility
2 colleges of nursing
500+ employed physicians in more than 60 locations
Parent company, The Sisters of the Third Order of St. Francis is a not-for-profit
corporation reinvesting resources into the communities it serves since 1877.
―In the spirit of Christ and the example of Francis of Assisi, the Mission of OSF
HealthCare is to serve persons with the greatest care and love in a community
that celebrates the gift of life.‖
SOME THINGS NEVER CHANGE.
A COMMITMENT TO LIFE. A COMMITMENT TO THE
COMMUNITIES WE SERVE. A COMMITMENT TO CARING.
In the more than 130 years
since The Sisters of the Third
Order of St. Francis were
called ―to care for the sick,‖
our Mission of healing has
remained steadfast. And while
we now have more than 12,000
employees and a vast network
of health care facilities, one
thing has stayed the same…
our commitment to you.
OSF HEALTHCARE SYSTEM PEORIA, ILLINOIS | OSF SAINT JAMES-JOHN W. ALBRECHT MEDICAL CENTER PONTIAC, ILLINOIS
OSF SAINT FRANCIS MEDICAL CENTER PEORIA, ILLINOIS | OSF SAINT CLARE HOME PEORIA HEIGHTS, ILLINOIS
OSF HEALTHCARE FOUNDATION PEORIA, ILLINOIS | OSF HOME CARE SERVICES PEORIA, ILLINOIS | OSF MEDICAL GROUP
PEORIA, ILLINOIS
OSF ST. FRANCIS HOSPITAL & MEDICAL GROUP ESCANABA, MICHIGAN | OSF ST. MARY MEDICAL CENTER GALESBURG, ILLINOIS
OSF ST. JOSEPH MEDICAL CENTER BLOOMINGTON, ILLINOIS | OSF SAINT ANTHONY MEDICAL CENTER ROCKFORD, ILLINOIS
OSF SAINT FRANCIS, INC. PEORIA, ILLINOIS | OSF HOLY FAMILY MEDICAL CENTER MONMOUTH, ILLINOIS
Financial Overview
OSF Healthcare
Fiscal Year 2009
Annual Gross Patient Revenue: $4 billion
Total Assets:
$2 billion +
Total Acute/LTC Admissions:
56,000
Total Number Beds:
1,295
OSF Healthcare ranks 16thamong the nation’s 580
Integrated Health Networks
OSF HealthCare Story
The OSF HealthCare story is derived from the organization’s
focused and value-based drive to provide patient care and
service through daily living of its mission, vision and values at
every level, and how:
• Strategy and language are chosen
• Communications align and reinforce perceptions of what
constitutes effective care and service delivery
• Leaders are oriented and developed to model the way
• Every employee, leader, physician is measured and held
accountable
• A strong, value-based culture has enabled change
What are you doing today
to reinforce your
organization’s mission,
vision and values
alignment?
Core Values as
Drivers of Behavior
The Value of Values
Core values are deeply held principles that people hold to
when making decisions. Truly value-driven organizations
are more successful because:
1. Values drive culture
2. Culture drives employee fulfillment
3. Employee fulfillment drives patient/customer
satisfaction
4. Patient/customer satisfaction drives brand and
reputation
Research shows that there is a strong link between organizational
performance and the alignment of operating values to employees
personal values.
The Erosion of Trust
• Recent study by PriceWaterhouseCoopers’ Saratoga
Institute stated that just 39% of employees trust their
senior leaders
• 82% of Americans believe that executives help
themselves at the expense of their employees
• 34% of workers agree that I can trust management in
my organization to always communicate honestly
• Only 50% of workers believe that managers in their
organization are concerned for the well-being of
employees
OSF HealthCare Purpose and Meaning
OSF Mission
In the spirit of Christ and the example of Francis of Assisi, the
Mission of OSF Healthcare is to serve persons with the greatest
care and love in a community that celebrates the Gift of Life.
Vision
Recognizing God’s great gift of life, we will be a community of
caregivers pursuing perfection in healthcare quality, safety,
service and financial integrity.
More than 133 years answering the call.
OSF HealthCare Values
Justice
Compassion
Integrity
Teamwork
Employee well-being
Supportive work environment
Trust
Stewardship
Leadership
―Serving persons with the greatest care and love‖
Defining the Meaning of Trust at OSF
Open and honest communication to foster trust
relationships among ourselves and those we serve
Trust: fundamental to the therapeutic alliance between
clinician and patient and care team members – what we refer
to as our Community of Caregivers
Measuring Mission & Values
Alignment
System-wide Survey
12,218 employees invited
100%
90%
81%
90%
95%
80%
70%
60%
50%
40%
30%
2005
2007
11,554 Respondents
2009
Survey Design
• Morehead works with the client to identify outcomes and
measures to be derived from survey data
• Focus for OSF:
– Assess the strength of perceptions and performance
around key elements of Mission and Values
– Determine the extent of ―systemness‖ across all
entities and down through reporting lines
– Achieve improvements against benchmark
Morehead’s Model of Workforce
Commitment™
Organization
Domain
Workforce
Commitment
Manager
Domain
High
Performance
Organization
Employee
Domain
Model based on Factor Analysis and
Structural Equation Modeling
Morehead’s National Healthcare Average
Updated annually and reflective of more than 350 organizations, our
National Healthcare Average is a benchmark designed to mirror the
distribution (geography and sector) of the U.S. healthcare labor force.
A representative sample of organizations included in this benchmark includes:
• Advocate Healthcare
• Mount Sinai Medical Center
• Beth Israel Deaconess Medical Ctr
• Roswell Park Cancer Institute
• Carolinas HealthCare System
• Scottsdale Healthcare
• Catholic Health East
• Sharp Healthcare
• Cambridge Health Alliance
• Texas Children’s Hospital
• Cedars-Sinai Medical Center
• The Methodist Hospital System (TX)
• Children’s Hospital of Philadelphia
• University of California Medical Centers
• John C. Lincoln Health Network
• University of Chicago Medical Center
Morehead’s National Benchmarks
Updated annually, Morehead’s norms are weighted averages designed
to mirror the target population of focus. Currently, Morehead
maintains more than 100 separate normative benchmarks specific to
the healthcare sector.
Organizational Characteristics
Workforce Attributes
• Healthcare Sector (i.e., Academic &
Teaching, Acute Care, Children’s, etc.)
• Position (Faculty, Administrator, Research
Scientist, RN, Licensed Technical, etc.)
• Geographic Location (Census Region &
Division, MSA, Urban, Rural, etc.)
• Function/Business Line (Registration, Intensive
Care, Labor and Delivery, etc.)
• Performance (High Performing, Magnetdesignated, Top 100, etc.)
• Shift and Status (night, rotating, full time, etc.)
• Size (number of beds, number of
employees, admission volume, etc.)
• Tenure and Level (years worked, supervisor,
manager, senior leader)
• Race, Sex, Age/Generation
• Work Unit
Morehead’s Definition of Commitment
• Willing to go “above and beyond,” exerting additional
effort
• Demonstrating energy and enthusiasm for their work
• Loyalty to the organization – greater likelihood to stay
employed
• Pride in the organization and willingness to recommend
the organization as a place to work and to receive care
• Greater overall satisfaction
Workforce commitment is often used synonymously with employee
“engagement,” currently a popular term in organizational leadership.
Scale and Significance
Performance Scale
Strongly Disagree
1
Disagree
2
Neutral
3
% Unfavorable
Agree
Strongly Agree
4
5
% Favorable
Note – In this presentation GREEN represents a favorable statistically significant
difference and RED represents a negative difference:
National Healthcare Average +/- .03
OSF HealthCare History 2007 +/- .03
Workforce Commitment Score™ at OSF
Average of
Workforce
Commitment
survey items
2009
OSF
HealthCare
4.25
Performance Difference:
2008
Nat'l HC
Avg
2007
OSF
HealthCare
+.23
+.17
2007
OSF
HealthCare
Significantly
Favorable
Difference
4.08
26
WFC
Percentile
Ranking
92nd
OSF HealthCare’s Overall Performance
Domain
2009
Perf.
Score
%
Unf.
Diff from
Nat'l HC
Avg
Diff
from
2007
ORG
4.41
2%
+.38
+.06
ORG
4.51
2%
+.30
+.15
ORG
4.41
3%
+.25
+.12
ORG
4.30
3%
+.25
+.24
I would like to be working at OSF HealthCare
three years from now
CI
4.42
3%
+.23
+.11
I am proud to tell people I work for OSF
HealthCare
CI
4.42
2%
+20
+.14
ORG
4.34
5%
+.18
+.17
Item: Strengths as compared to the National
Healthcare Average
Our facility is respected in the community
I would recommend OSF HealthCare to family
and friends who need care.
Our facility provides high-quality
care/service.
Our facility conducts business in an ethical
manner
Our facility makes every effort to deliver (or
support delivery) of safe, error-free care.
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Assessing Organizational Alignment
Domain
2009
Perf.
Score
%
unfav
Diff from
Nat'l HC
Avg
Diff
from
2007
Employees’ actions support our facility’s
Mission and Values
EMP
4.02
6%
+.18
+.18
The actions of the person I report to support
our facility’s Mission and Values
MGR
4.20
6%
+.06
N/A
I have confidence in senior management’s
leadership
ORG
3.76
14%
+.07
+.23
There is effective communication within my
work unit.
EMP
3.79
15%
+.26
+.24
Different levels of our facility communicate
effectively with each other.
ORG
3.54
16%
+.34
+.44
Items:
Mission/Values
Communications
28
Key Drivers of Workforce Commitment
Employee Opinion
Survey Topics
Workforce
Commitment
• Based on multiple regression techniques
• Determines the impact of individual survey items
(topics) on an outcome of interest (e.g.,
Workforce Commitment)
• Illuminates the items that significantly impact or
―drive‖ the outcome of interest
What is driving Commitment at OSF HealthCare?
Key Driver Analyses
• Based on a sample of OSF facilities
– OSF Saint Francis Medical Center, OSF St. Joseph Medical Center, OSF
St. Mary Medical Center, OSF Saint Anthony Medical Center, OSF Saint
James–John W. Albrecht Medical Center, Corporate Office
• Trust Composite
– There is a climate of trust in our facility
– There is a climate of trust within my work unit
• Communication Composite
– Different levels of our facility communicate effectively with each other
– The person I report to is a good communicator
– There is effective communication within my work unit
Key Drivers of Trust
Difference from:
Drivers in order of influence
2009
OSF*
%
Unf
2008
Natl
HC Avg
2007
OSF
Employees’ action support our facility’s Mission and Values. [EMP]
4.02
6%
+.18
+.18
There is effective communication within my work unit. [EMP]
3.77
15%
+.24
+.22
Our facility treats employees with respect. [ORG]
4.00
8%
+.24
+.23
My work unit works well together. [EMP]
4.01
10%
.00
+.05
Physicians treat other staff members in our facility with respect
[ORG]
3.73
10%
+.26
+.15
Members of my work unit accept responsibility for their performance
[EMP]
3.82
13%
+.03
+.12
I have confidence in management’s leadership. [ORG]
3.76
14%
+.07
+.23
I respect the abilities of the person to whom I report. [MGR]
4.13
9%
-.04
+.14
I have the authority to determine the best care for my patients. [EMP]
3.91
8%
NA
NA
My ideas and suggestions are seriously considered. [MGR]
3.65
16%
.00
NA
Different levels of our facility communicate effectively with each
other. [ORG]
3.56
15%
+.36
+.46
Key Drivers of Communication
Difference from:
Drivers in order of influence
2009
OSF*
%
Unf
2008
Natl
HC Avg
2007
OSF
6. The person I report to communicates important information to me
in a timely manner [MGR]
3.85
14%
+.13
+.15
37. The person I report to cares about my job satisfaction. [MGR]
3.93
11%
+.01
+.17
29. There is a climate of trust within my work unit. [EMP]
3.78
15%
+.14
+.16
11. Different work units work well together in our facility. [ORG]
3.60
14%
+.10
+.07
35. Our facility promotes a culture of patient safety. [ORG]
4.35
3%
NA
NA
44. The person I report to gives me useful feedback [MGR]
3.88
12%
+.09
NA
2. The person I report to encourages teamwork. [MGR]
4.14
8%
+.07
+.15
13. Physicians and staff work well together. [ORG]
3.83
7%
+.19
+.21
7. I have confidence in management’s leadership. [ORG]
3.76
14%
+.07
+.23
19. Members of my work unit accept responsibility for their
performance [EMP]
3.82
13%
+.03
+.12
27. There is a climate of trust in our facility. [ORG]
3.70
14%
+.29
+.24
How do your organization’s leaders
demonstrate/model its values at all
levels?
How do you know your leadership
strategies around mission/vision and
values are effective?
How OSF Reinforces
Mission/Cultural Strengths
1. Building the connection. Employee orientation video: Mission,
Vision and Values – history and the call to work at OSF. 2½ days
first year for new managers. ―What commitment means‖
2. Annual leadership retreat: ―How do you make the Mission come
alive?‖ Exploring goals and challenges through the Mission lens
3. Annual employee Mission renewal: ½ day for everyone
4. Employees’ personal pledge to support mission and values
5. Executive compensation. Living the mission, achieving goals:
50/50—how well you do locally and how well within the system
How OSF Reinforces
Mission/Cultural Strengths
6. Clinical staff complete orientation on community of Caregivers:
• Attending Mission Integration session
• Integrating Mission, Vision, Values with actions
• Developing trusting relationships with patients/coworkers
• Listening to all encountered with respect and compassion
7. Sharing Best Practice through Case discussions
8. Ministry Development – beginning every meeting with a
reflection/prayer
9. CEO Blog: ―chats‖ through the year on challenges facing the
system
Consistency of Message
Instilling Accountability at
Every Level
Achieving ―Systemness‖
Alignment and Accountability
How leadership is oriented and held accountable for value-driven
behavior:
• Annual Performance Evaluations
– Mission & Values
– Personal Commitment Pledge
•
•
•
•
•
Quarterly 1-day meetings with system counterparts
Quarterly meetings with boss to review goals/objectives
Quarterly ―rounding‖ of SVPs with cohorts thru-out system
CEO’s monthly meetings with top leadership
Separate annual meetings for:
– Management Plans
– Budgets
– Leadership Development
The Mission Renewal Agenda
―Acknowledges their
critical role in
championing a ―Culture of
Respect‖ among our
Community of
Caregivers…
OSF Employee ―Personal Pledge‖
Measuring Team Results
Metric for Mission Renewal in Team Award
MEASURE
Community of
Caregivers
Mission
Integration
OUTSTANDING
TARGET
99% +/-1% of
90% of Corporate
Corporate
employees
employees
complete Phase II
complete Phase II of Mission
of Mission
Integration
Integration
Program
Program
Dollar Value
THRESHOLD
(PERFORMANCE
LESS THAN
THRESHOLD
RESULTS
IN NO PAYOUT)
MEASURE
85% of Corporate
employees
complete Phase II
of Mission
Integration Program
Community of
Caregivers
Mission
Dollar Value
Dollar Value
Integration
Entity Leaders
• OSF Saint Francis Medical Center completed new 440,000
square foot patient tower this summer housing new Children’s
Hospital of Illinois in a setting that is patient/family/staff centric…
• NICU at Children’s Hospital ranked #1 in world by Vermont
Oxford Collaborative at Johns Hopkins for infant mortality and
morbidity
• In-patient satisfaction, as measured by Press Ganey, indicates OSF
St. Joseph Medical Center has been 96th percentile or higher for
past 8 quarters
• OSF St. Francis Hospital, Escanaba, received the Governor’s
Award of Excellence for quality care for the 8th consecutive year
• 96% of regional referring physicians surveyed by the OSF
Children’s Service Line were very satisfied with the quality,
service and access to pediatric care
Summary
Summary
OSF HealthCare systematically developed its value-driven culture
through:
1. Clarity and consistency of mission/vision/values
2. Regular reinforcement through use of values language
3. Orientation and development of employees, physicians
and leadership
4. Rounding and leadership retreats
5. Annual mission renewal
6. Personal performance pledges and goals, and survey
measurement to reinforce accountability
7. Incentives tied to executive and team compensation
Identify one takeaway from
today’s case study
How will you take action in
your own organization?
How to use Organization Values
to Achieve Mission Alignment:
The OSF HealthCare Story
Presented by:
James G. Farrell, MBA
Senior Vice President
Marketing & Communications
OSF HealthCare
Helen Carol Krewson, MS, SPHR
Lead Consultant
Morehead Associates