Do You Have The Right Tech Strategy? An Executive Seminar ...€¦ · Strategic planning is your organization’s process of continually assessing its internal capabilities and the

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www.openminds.com15 Lincoln Square, Gettysburg, Pennsylvania 17325

Phone: 717-334-1329 - Email: [email protected]

#OMTechnology

Monday, November 6, 2017 ⅼ 1:00pm – 4:00pm

Matt Chamberlain, Senior Associate, OPEN MINDS

Do You Have The Right Tech Strategy? An Executive Seminar On Technology Selection & Budgeting


I. The Importance Of Strategic Planning For Technology Strategy

II. Why Scenario-Based Planning May Be The Best Option In A Changing Market

III. The OPEN MINDS Approach To Developing An Effective Strategic Plan

IV. Sample Analysis Data

V. Developing the Right Technology Strategy & Budget

VI. Technology Planning Case Study #1

VII. Technology Planning Case Study #2

VIII. Technology Planning Case Study #3 - Workgroup

IX. Technology Planning Discussion Questions

Agenda

The Importance Of Strategic Planning For Tech Strategy


Perspectives…

“Our goals can only be reached through a vehicle

of a plan, in which we must fervently believe, and

upon which we must vigorously act. There is no

other route to success. ”

- Pablo Picasso


Technology Investments Must Be In Sync With Strategy & Strategic ROI

Your tech strategy can’t

be “successful” without

having an overall

organizational strategy…

"If you don't know where you are going,

any road will get you there."

- Lewis Carroll


What Is Strategic Planning?

Strategic planning is your organization’s process of

continually assessing its internal capabilities and the

external environment (payers, consumers, and

competitors) in order to determine how best to use its

limited resources to meet your strategic objectives.


The Strategic Part Of Technology Planning

The Strategic Technology plan identifies technological infrastructure

needed for organization to reach its strategic objectives

Should demonstrate (and quantify) that proposed technology

investments deliver return in:

a. Increased revenues

b. Improved performance

c. Reduced operating costs

d. Improved stakeholder preference or market position


Strategy In An Uncertain Landscape

Need three plans –

1. The strategic plan for the current market – should focus on optimizing the performance of current operations (market positioning, market share, revenue, margins, etc.)

2. The strategic plan for the future market – should have a vision for your organization in its ‘next generation’ – and determine the time and resource required to make that change

3. The transition plan to the future market – the framework for moving from current market to future market



Value Of Planning For CEO & Management Team

Provides clarity from the board regarding organizational

priorities and performance expectations

Serves as the basis for development of organizational

infrastructure and operating plans

Serves as the basis for departmental and program plans


Value Of Planning For Your Organization

Interprets the mission and vision, providing clear direction for

the short-term and for the future

Serves as a formal process to allocate limited resources

Establishes strategic priorities

Ensures organizational alignment

Establishes the basis for on-going performance reporting on

organizational status provided by the chief executive officer to

the board


What Emerging Science Will Have The Greatest Impact On Behavioral Health?

New Understanding

Of Central Nervous

System & Brain

Chemistry

Technology To

Optimize the Value

of Consumer Care

Technology To

Support System

Performance

Improvement


Reducing Service Cost

Engaging Consumers

Technology Infrastructure To Optimize Value Of Consumer Care

Patient portals,

websites, and

web-based

consumer tools

Automated

consumer outreach

Telehealth and

telemedicine

Remote

monitoring

Tech improving

admin

efficiencies

Tech-enabled

treatment


Diagnost ics

Consumer

Educat ion

/ Dec is ion

Support

C l in ica l

T reatmen

t

Cognit ive

Funct ion

Restoration

Ear ly

Detect ion

of

Re lapse

Re lapse

Preventio

n

Remote

Monitor in

g of

Pat ient

Heal th

Treatment-Enabling Technologies Available All Along The Service Continuum

• Video Doctor

• Common Ground

• Virtual Handheld Clinic

• PTSD Coach

• True Colours

• ChronoRecord

• Health Steps for Bipolar

• Biomarker: BDNF levels

• myStrength

• Tele-psychiatry using IronWorks™

• M3 (My Mood Monitor™)

• Brain scanning tech

• TMS Therapy®

• Beating the Blues

• SilverCloud

• My Mood Map

• eCBT Mood©

• MyBrainSolutions

• Automatic Trail Making Tests™

• fMRI

• ITAREPS

• MONARCA

• Actiwatch

• Health Buddy®

• OPTIMI

• Technology Enhanced Recovery™

• REAC-CRM (REAC-lithium)

• PSYCHE

• Personalised Ambient Monitoring (PAM)

• MoodMapping

• ViTelCare™ T400

• SenseWear® Armband System

• MagneTrace

• ID-Cap

• Electronic Medication Management Assistant® (EMMA)

• Implantable RF Transceiver ZL70102

• Motionlogger Actigraph

• Helius™

• MOBUS


Optimizing Organizational

Performance, Care

Coordination & Population

Health Management

Getting The Necessary

Data

Technology Infrastructure To Support Performance Management

Electronic

health records

Health information

exchange and data

aggregation

Care

coordination

platforms

Advanced

population analytics

and clinical decision

support

Performance

monitoring and

management tools

Consumer

segmentation

and health risk

stratification

Consumer referral

tracking

Patient

registries







So Where Does Technology Fit In This Equation? Necessary To Manage Risk & Compete On “Value”

Analytics technology to

support performance

measurement

capability

Treatment technology

into increase ‘value’ of

consumer care

For analytics

technologies,

use of the data

for decision

making is key

to ROI

For treatment

technologies,

increasing

treatment

‘value’ is key to

ROI


Technology Has Changed The Expectations Of Payers & Consumers

1. Personalization of

consumer treatment

through analytics-

informed decision

support

2. More efficient and

effective

coordination of

consumer services

across the service

system

3. The measurement of

“value” of services

Telehealth and

virtual

consultation

changing

geographic market

boundaries for

services

Smartphone and

other technologies

for inexpensive

consumer-

directed disease

management

Health information

exchange provides

data exchange and

creates ‘big data’ for

consumer service

planning

New treatment

technologies have

changed the

options for

consumers


New Genetics, Pharma, &

Neurotech:

The “What” of Service

Telehealth & Remote Services:

The “Where” of Service

Web-Enabled Admin Tools:

The “How” of Service

Analytics & Decision Support:

The “Right” Service

New Service

Delivery

Paradigm

A New Market Model Is Emerging


Technology Adoption in Health & Human Services Is Slow

Conflict between

the technical

capabilities of

HIEs and HIPAA

Slow change in

reimbursement

models to

support (require)

new tech

adoption

Lack of ‘best

practice’ models

and expertise to

reengineer

service delivery


34.7% 30.6%25.5%

16.8%

4.1%

13.3%13.8%

15.8%

18.4%

3.6%

31.1%30.6% 33.2%

38.3%

22.4%

0.0%

20.0%

40.0%

60.0%

80.0%

Text messaging/email

communication with

consumer

Telehealth/telepsychiatry Consumer portal Patient engagement

apps/tools

eCBT

Adoption Of Technology Innovations By Specialty Provider

Organizations, 2017, %Currently implemented Implementation in process Considering implementing in future


Strategic Success Requires New Management Practices & Discipline

1. Develop vision of future competitive advantage and market positioning

2. Scenario-based strategic plan incorporating alternate future positioning options

3. Detailed plans – marketing, financial, operational, capital, HR, etc. – to implement

strategy and future vision

4. Key performance metrics and metrics-based management to track strategy

implementation (and allow mid-course adjustments)

5. Optimization of current operations to keep current programs as competitive (and

profitable) as possible as long as possible

6. New service model development to support future vision

7. Collaborations as needed to facilitate new market vision


Where Does Technology Fit In?

1. Develop vision of future competitive advantage and market positioning

2. Scenario-based strategic plan incorporating alternate future positioning options

3. Detailed plans – marketing, financial, operational, capital, HR, etc. – to implement

strategy and future vision

4. Key performance metrics and metrics-based management to track strategy

implementation (and allow mid-course adjustments)

5. Optimization of current operations to keep current programs as competitive (and

profitable) as possible as long as possible

6. New service model development to support future vision

7. Collaborations as needed to facilitate new market vision


Shifting Role of Technology In Health & Human Services

Administrative

Tool

Compliance

Requirement

Platform For

Competitive

Advantage


The Shift From The Functional To The Strategic

The result of compliance focus of the past ten years – less focus on

usability and clinical effectiveness

– From ‘cost’ to ‘investment’

– From ‘administrative management’ to ‘imbedded in service lines’

Essential for competitive advantage – and market positioning - over

the next five years

Why Scenario-Based Planning May Be The Best Option In A Changing Market


Scenario-Based Planning Is A Tool For Planning In A Chaotic Market

1. Most organizations need to

move forward with

implementation without

“final” information

2. Most practical option is

concurrent scenario building

and planning

1. Most organizations need to

move forward with

implementation without

“final” information

2. Most practical option is

concurrent scenario building

and planning

A Scenario Is. . .

An outline of an hypothesized chain of events

Depictions of a future that are useful to clarify thinking – not predictions or forecasts of what will happen; rather, a suggestion of what might happen

Several (usually 3-5) descriptions of hypothetical situations –interspersed with extrapolations of trends; more useful for understanding options and dealing with uncertainty than in predicting specific events


Scenario-Based Planning Process

1. Build scenarios of likely future situations and high-level implementation plans for each

2. Determine the “common elements” in the scenario implementation plans – common organizational capabilities, resource investments, partnerships, etc.

3. Select the “most likely” scenario to occur as the basis for the strategic plan

4. When building the operational implementation plan, implement the “common elements to all scenarios” first

5. Monitor events to update scenarios and action plans

6. Continuously update both the scenarios and the implementation plans based on new developments


Strategy Development - Common Strategic Options For Consideration

Closure of services/service lines that are not profitable and/or

affordable and/or “good fit”

Strategies to improve margins of existing service line

Building “value added” products to increase margins

Expansion of successful service lines (expansion of geography, new

customer base, etc.)

Diversification of revenue sources

Reconfiguration of services within “value chain”

Strategies to address shifting “economy of scale” issues


Factors Contributing To Failed Plan Implementation

Poor preparation of

line managers

Definitions of

service lines and

operating units not

precise

Vaguely

formulated goals

Inadequate

information for

action planning

Badly handled

reviews of business

unit plans

Inadequate linkage

of strategic plan

with other control

systems

The OPEN MINDSApproach To Developing An Effective Strategic Plan


Recommended Phased Business Strategy Development Process

Phase One

Scenario-based strategy

development

Phase Two

Modification of

business unit plans to

support strategy

implementation

Phase Three

Development of

executive team

performance dashboard


Phase One: Scenario-Based Strategy Development

Confirm short-term and long-term organizational

objectives

Analyze external and internal factors that affect

strategy

Identify likely environmental scenarios and related

strategic issues and priorities

Develop strategic priorities and related tactics

Develop a strategic action plan with a high-level

implementation plan


Phase Two: Modification Of Business Unit Plans To Support Strategy Implementation

Marketing and

development plan

Technology and

communications

plan

Operations

management plan

Human resource

and talent

management plan

Financial

management plan

Organizational and

program budgets

Financial

management

organizational

strategies

Recommendations

regarding

organizational

structure


Phase Three: Development Of Executive Team Performance Dashboard

Determine critical performance outcomes for success of

strategy

Identify leading indicators and metrics that track these

performance outcomes

Develop key performance indicator metrics and related

specifications

Create an executive team performance dashboard

based on these strategy key performance indicators


Overview Of Strategic Planning Process

Develop Key Performance Indicators

Develop Detailed Implementation Action Plan

Develop Budget & Financing Plan

Develop Operational Plans – Marketing & Business Development, HR & IT

Identify Options for Achieving Objectives - Strategies, Tactics, Markets & Services

Gather Internal Information/Internal Analysis – Service Portfolio Analysis

Gather External Information/External Analysis – Trends & Competitors

Review/Establish Mission/Vision/Objectives


Typical Strategic Plan Outline

Executive Summary

Statement of Annual Goals & Objectives (3 Year)

Summary of Internal Organizational Analysis

Summary of External Market Research

Possible Environmental Market Scenarios

Organizational Strategies & Tactics for the Most Likely Strategic Scenario

– Strategic Issues & Objectives

– Strategic Initiatives

– Key Tactical Elements of Each Strategic Initiative

Implications of Proposed Strategy & Tactics on Operations

– Marketing & Development Implications of Organizational Strategies

– Operational & Technology Implications of Organizational Strategies

– Financial Management Implications of Organizational Strategies

Strategic Action Plan: High-Level Implementation Plan for Each Strategic Initiative

Sample Analysis Data


Analysis Data Points

State Trends

Consumer Data

– Population / Demographics

Payor Coverage

– Medicaid, Medicare, Commercial, other

Competitors

– Size, Population, Service Lines, Branding


Internal Analysis

Revenue

– By service line

– Payer mix

Profit and loss

Number of consumers served by service line

Unit cost data

SWOT Analysis


Revenue Mix By Service Line

15% 15%12%

28% 28% 28%

4% 3%2%

47% 46%

50%

1% 2% 2%3% 3% 2%3% 3% 3%

2010 2011 2012

Partial Care Services Adult Residential Supported Housing

Other Services Adult PACT

Adult Intensive Case Mangement Services PATH

Adult Supported Employment

2015 2016 2017


Profit and Loss by Service Line, 2017

Revenues

Allocated & Direct Expenses

Percentage of Revenue by Service Line

Profit/Loss (Margin)

Margin (Percentage)

Funding Mix

Medicaid

Other state funds/ grants

Other local funds/ grants

Partial Care Services $2,387,697 $2,583,957 12.5% ($196,260) -8.22% 43% 55% 2%

Adult Residential Supported Housing $5,400,241 $5,298,334 28.2% $101,907 1.89% 13% 86% 1%

Other Services $419,493 $451,558 2.2% ($32,065) -7.64% 99% 1%

Adult PACT $9,589,380 $9,370,374 50.0% $219,006 2.28% 42% 58%

Adult Intensive Case Management Services $364,118 $428,828 1.9% ($64,710) -0.67% 31% 69%

PATH $410,177 $401,618 2.1% $8,559 0.09% 21% 79%

Adult Supported Employment $600,715 $576,691 3.1% $24,024 6.60% 100%

Total $19,171,821 100.0%


2017 Unit Cost of Services Unit of

Length Unit Cost Statewide

Median, 2010

Partial Care Services A County - Adult Only - Partial Care Services hour $38.35 $22.03

B County - Adult Only - Partial Care Services hour $16.51 $22.03

Adult Residential Supported Housing A County - Adult Only - Supported Housing 15 min $42.07 $43.14

B County - Adult Only - RIST 15 min $74.94 $50.05

B County - Adult Only - RIST 2 hour $22.49

C - Adult Only - RIST Tri-County 15 min $90.65 $50.05

C - Adult Only - At Risk 15 min

D County - Adult Only - Supported Housing 15 min $54.70 $43.14

E County - Adult Only - Supported Housing 15 min $39.04 $43.14

UnEion County - Adult Only - Enhanced Support 15 min $48.28 $43.14

Other Services Regional - Adult Only - Supported Education hour $66.22

Statewide - PACT TTA

Adult PACT E County - Adult Only - PACT 9 hour $261.81

D County - Adult Only - PACT 5 hour $274.71

B County - Adult Only - PACT 7 hour $237.53

B County - Adult Only - PACT 8 hour $250.76

A County - Adult Only - PACT 6 hour $223.41

C County - Adult Only - PACT 1 15 min $205.85



Z County - Adult Only - PACT 4 15 min $274.57

Adult Intensive Case Management Services F County - Adult Only – ICMS 15 min $82.23 $58.85

PATH F County - Adult Only – PATH 15 min $92.63 $56.63

F County - Child & Adult - PATH 15 min $53.53

Adult Supported Employment E County - Adult Only - Supported Employment 15 min $58.62

B County - Adult Only - Supported Employment 15 min $65.13


Unit Cost Data

Developing The Right Technology Strategy


Overview

The planning process can represent a significant challenge. It takes

time and resources in an already taxed environment

Planning

– Remove obstacles

– Look for process improvements

– Define best practices

– Consider new technologies (Broaden the scope of technology – don’t see what

you have now as all you’ll ever need)


The Strategic Part Of Technology Planning

Are you a small or large business?

What is your current technology investment?

– How far is it from where you need to be? (Timeline & Budgeting Effects)

In-House or Cloud-Based

– It’s not just EHRs!

– Moving to the Cloud? Internet bandwidth could be an issue

Current and future needs – hardware, software and support

Staffing - Less or More?


The Strategic Part Of Technology Planning Continued

Organizational Impact – How will it affect:

– People

IT

Management

Clinical

Billing

– Time

– Processes

– Training

– It is easy to underestimate

The most important question is WHY?


The Strategic Part Of Technology Planning Continued

The Strategic Technology plan identifies technological infrastructure

needed for organization to reach its strategic objectives

Should demonstrate (and quantify) that proposed technology

investments deliver return in:

– Increased revenues

– Improved performance

– Reduced operating costs

– Improved stakeholder preference or market position


Broad Categories Of Technology Use In Behavioral Health Care

The Basics:

• Electronic Health Records

• Operations Software Applications – HR / Payroll; GL / Accounting

Telehealth Technologies

Consumer-Focused Technologies

Informatics, Analytics & Decision Support Technologies

Website & Social Media Usage


Three-Phase Review Of Technologies

Strategic

review

phase

Clinical

review

phase

Business

model

review

phase

.


Start With Strategy & Positioning Of Each Service Line

Strategy should set the context

for tech selection – what markets

and what service lines?

Key question is competitive

advantage of each service line in

the selected markets

What are the

competitive

threats to keeping

targeted customer

and consumer

markets?


Technology Investment Should Serve Strategic Purpose

Reduce cost of service per unit

Reduce cost of service per case

Improve payer preference

Improve consumer preference

Improve operating performance

Improve consumer outcome or

functioning

Facilitate new consumer service

Facilitate new payer relationship

Strategic review

Short list of

technologies for

each service line

Clinical review


Phase 2: Clinical Review Phase

The technologies that meet the strategic review

criteria form a short list for clinical review.

Review of clinical leadership of proposed

technology

– Clinical methodology and operational use of

technology

– Scientific development and research data

– Outcomes and performance data

– Customer/consumer acceptance

Select treatment technologies to build into

service process

.

Does the new

technology

meet your

organization’s

clinical

standards?


Phase 3: Business Model Review Phase

Define the revised service line business

model with embedded technology

Determine financing model and

reimbursement for service

Process mapping of revised service line

Develop a financial sustainability plan for the

business model – breakeven and P/L

Establish key performance metrics for

tracking performance


Step 1 & Step 2. Define The Business Model & The Financing Model For The Service Line

Structural

Financing

Model

Service

Delivery

Model


Step 3. Creating Process Map Of Revised Service Line


Step 4. Develop Financial Sustainability Plan For Business Model

Conduct a

breakeven analysis

Develop profit/loss

projections

Business model to

imbed in

organizational

strategic plan,

operating plans,

and final budget


Conduct Breakeven Analysis

Breakeven analysis answers question: At what level of revenue (how many consumers) will the program break even?

Breakeven analysis is a supply side (i.e., costs only) analysis –does not address revenue side of the equation

Construct breakeven analysis for the specific coordinated care business model both with and without organizational overhead

Key breakeven analysis factors:

1. Annual yield/productivity of service units (by type) per direct service (billable) clinical team member

2. Average annual total compensation cost per direct service (billable) clinical team member

Assumptions in breakeven analysis:

1. Constant fixed costs

2. Average variable costs with assumptions

3. Relationship of revenue to variable expense in assumptions

4. Factors affecting assumption of yield/productivity of team members


Develop Profit/Loss Projections

1. P/L determines the margin of service line based on revenue projections and operating cost model

2. Financial statement summarizing revenues (with associated costs and expenses) incurred during a specific period of time

3. Illustrate the ability of the program to generate a margin by increasing revenue and reducing costs

4. Revenue projections – and assumptions – are key element of P/L projections

5. Typically, revenue projections in health and human services are created by payer/contract

Key Variables In Profit/Loss Projections

1. All services provided

2. Number of annual unique consumers by payer

3. Number of annual service units (by type) per consumer by payer

4. Negotiated contract rate for each service unit, case, or population, by type and by payer

5. Billing and collections yield (% of total units billed that are collected) by payer

6. If P4P bonuses or penalties, the projected performance on each P4P performance measure


Analysis Of Program Business Model

1. Does the investment in technology

achieve objectives and improve the

performance of the service line?

2. Improve margin and sustainability?

3. Reduce costs to customers (payer or

consumer)?

4. Improve performance or outcome in

metrics that are of interest to

customers?

If no demonstrable

improvement in

cost reduction,

margin

improvement, or

revenue – no reason

to invest in

technology…


Step 5: Establish Key Performance Metrics To Track Clinical & Financial Performance

If you don’t measure it, you can’t manage it

Having a plan is not enough – tracking and managing

performance of plan is key…

Whatever gets measured...

Gets attention

Gets done


The Budget Issue… Can You Afford The Technology You Need?

1. Capitalization of the initial purchase is

smaller issue

2. The big question – on-going costs of

technology and systems to support it

3. Part of financial analysis – breakeven

points and on-going P&L

4. It’s all about ROI

"Price is what

you pay. Value

is what you

get.“

Warren Buffet


From Technology Planning To Budgeting

Organizational Strategy & Vision For IT

Current IT Environment: Gap Analysis &

Assessment

Future IT Environment: What It Will Look Like &

Performance Expectations

Detailed Plan

Budget & Other Resource Requirements


A Review: Budgeting 101

A balanced financial plan that promotes the efficient allocation and use

of resources and ensures that all funds received and disbursed are

accounted for in accordance with current laws, regulations, and policies

– A plan

– Identifies receipts and expenditures in specific amounts

– Specific cost categories

– Set period of time

– Monitoring mechanisms


Technology Plan

Budget

• Ensuring that

technology aids

in your objectives

Basic Expenses

• Covering all the

basics to support

infrastructure,

applications, and

staff

Routine Capital

Budget

• Maintaining and

enhancing

technology

infrastructure

Three Key Components Of Technology Budget


1. Technology Plan Budget Components

This one is easy – it’s the current budget year costs as laid out in your

detailed technology plan


2. Basic Technology Budget Expenses

This is the bigger list of items:

Information technology staff and benefits

Telecommunication/connectivity costs

Internet access costs

Software maintenance and help desk fees

Training costs

Consulting/customization costs

Outsourced IT service costs

Other?

Must-Have Basic IT

Budget Expenses

Infrastructure support

and maintenance

Application support

and maintenance

User support (Help

Desk)


3. Technology Capital Budget Expenses

This includes your typical

capital budget expenses

– Hardware, networks, and upgrade

costs

– Software and software upgrade

costs

– Other capital expenses and related

depreciation

Use both strategies in your IT

budgeting process:

– Top Down – IT initiatives are pushed

from the top executive level on

down to the masses, based on

strategic objectives and initiatives

– Bottom Up – Where they start at

the department level and roll

upward for approval


Common Questions Related To Technology Planning & Budgeting

What percentage of your overall budget should the technology budget be ?

How many FTEs should you have in your technology department and who

does it report to?

What are the key initiatives and objectives of your organization’s technology

plan for the next 3-5 years?

What major expenses are you anticipating in your technology budget and how

are you funding them?

How is your technology staffing changing (if at all) to meet your organization’s

needs over the coming years?

How are you building in mechanisms to support your staff’s increased use of

technology?


Major Data Systems Analysis: EHR

Inventory your current use of your electronic health record software

solution

– Using all major modules and components?

– Keeping abreast of updates and new functionality?

– Ensuring data quality?

– Good end user training materials and documentation?

– Routine reporting set-up with documentation on use?

– Other?


Major Data Systems Analysis: GL/Accounting Systems

Inventory your current use of your GL/accounting software solution



– Fully integrated with human resource and payroll applications?

Broad areas of functionality

– Budgeting and financial reporting

– Contract & grant management

– Unit cost reporting and management

– Forecasting

– Fixed asset management

– Electronic banking


Major Data Systems Analysis: Integrated HR System

Inventory your current use of human resource software solution



Broad areas of functionality

– Basic employee information

– Position control

– Education and certification tracking

– Electronic timesheets

– Employee self-service (demographic information, benefits, etc.)

– Manager self-service (position changes, evaluations, etc.)


Video & Telehealth Technologies

Do you use video technologies for staff meetings and staff contracts to

reduce travel time and costs?

Have you implemented the use of video technologies for service

delivery and consumer contacts?


Research & Plan for Use of Other Consumer-Focused Technologies

Which categories of consumer-technologies make sense for your

organization? How to you decide which to use?

– Diagnostics

– Consumer education

– Treatment technologies

– Cognitive function restoration

– Early detection of relapse

– Relapse prevention

– Remote monitoring


Data Analytics Plan

What reporting do you want from your various software systems and

databases?

– Define reporting and dashboard needs.

– Identify data points and locations.

– Identify tools (data warehouse, data exports, business intelligence tools, etc.) to

aggregate and analyze data.

– Train staff in using the reports, dashboards, and data analysis tools


Resources To Support Your Technology Use

Application support

– Do you have staff members who are the ‘expert users’ as well as those that

support your key software applications? Are the basics documented so that you

are not dependent on individuals?

Technology infrastructure support and maintenance

– What is your plan for maintaining and upgrading your technology infrastructure?

Help Desk

– Do you have formal help desk functions, require response times, and reporting

to support all technologies?


Six Simple Rules For Tech Investment

1. Buy technological functionality like you buy anything else

2. Don't be swayed into buying new technology simply for the sake of the

technology

3. Don't immediately reject technology that re-engineers your work processes

4. Assess potential technology vendors like you would potential business partners

5. If a reasonable person can't understand it, don't buy it

6. Choose wisely, plan carefully, and monitor progress


Sample Technology Plan Outline

Executive Summary

a. The executive summary is a snapshot of the entire plan, highlighting the key areas of the plan, which include goals, vision, needs, priorities, and proposed solutions. It conveys how you will use technology to achieve your strategic and operational goals in alignment with your agency's mission.

Organization Profile

a. Include a short description of the organization to set the context, including a summary of the current state of technology use in comparison with the rest of the industry

Goals & Technology Vision

a. Describe the vision of how you see your organization using technology in light of its strategic and operational objectives.

Current Technology & Resources

a. Describe your current technology use and staff resources.


Sample Technology Plan Outline

Priority Needs

a. Develop a bullet list of priority technology needs for the next 3-5 years, referencing how they support the strategic and operational goals. Focus on what you want to do with technology, not simply what you want to purchase.

Technology Solutions

a. Detail the proposed technology solutions as a discreet list of items

Timeline

a. Develop a reasonable timeline to complete all phases of the technology plan. Set deadlines for phases and milestones.

Budget

a. Develop a budget for all of the items detailed in the technology solutions section.

Supporting Documentation

a. Include an appendix at the end of the plan for any support documentation.

Technology Planning Case Study #1


The Situation

County-based provider

$15 million in annual revenue

Medicaid; Medicare; Commercial; DHHS

230 Employees

3 Locations

Key state trends:

– Privatization of the management of some of the behavioral health services

– One million more individuals expected to obtain coverage through the Medicaid expansion provisions of the health care reform legislation

– The state has added or restored funding to improve the system of care for individuals with intellectual and developmental disabilities due to assorted court decrees

Service Lines

– Adult services (adult outpatient,

community support)

– Child, adolescent & families services

– Senior services

– Emergency services

– Housing services

– Medical (medication) services


Strategic Objectives

#1 Continue to develop the administrative systems and

service array necessary to maintain and further ABC

Organization’s reputation as a premier service provider in

the context of the changing state human service market.

#2 Pursue further revenue diversification and expansion

of services, supports, and prevention activities so that

ABC Organization can expand its impact on individuals,

families, and communities.

#3 Celebrate and communicate ABC Organization’s

performance and reputation as a center of excellence,

center of influence, and employer of choice.


Strategic Initiatives

Initiate a formal process for enhancing or developing relationships with

MBHOs or other parties who are likely to win the contract for privatization

Enhance the unit cost reporting and management and financial reporting

systems to ensure the ability of the ABC Organization to set target costs and

prices and manage them for all lines of service as well as provide all managers

with up-to-date financial reports with analysis and trend reporting

Implement a comprehensive technology infrastructure that:

– Supports the organization’s administrative, management, and compliance functions

– Creates new revenue and market opportunities

– Ensures successful implementation of electronic health records and meets all federal

requirements of meaningful use



Develop and expand the business development office to include

marketing, public relations, grant writing, and advocacy functions at

ABC Organization.

– Marketing and business development

– Referral generation and management

– Grant and contract writing and management

– Market research and service line development

– Partner selection and management

– Public relations

– Advocacy and lobbying efforts with communities and government stakeholders



Implement a formal balanced scorecard performance measurement

system and performance dashboard at ABC organization.

Develop a key stakeholder reporting and communication system to

communicate ABC organization’s performance and reputation as a

center of excellence, center of influence, and employer of choice.

Technology Planning Case Study #2


The Situation

Multi-County Provider

Annual Budget $130 million

97 county contracts, the majority are line-item cost reimbursement

contracts with performance reporting

The organization put together a seven component plan to be

implemented over an 18-month period



#1 Ensure the organization maximizes

reimbursement by spending exactly the

budgeted amount on each line item of

each cost-reimbursement contract

#2 Provide better data and

reporting to financial and clinical

staff to manage report financial

and performance data on each

contract



Implementing an electronic health record (EHR) to provide:

– Data on consumer demographics and service delivery

– Management reporting for operations

Restructuring the general ledger chart of accounts to:

– Enhance financial reporting and projections

– Allow the system to be used for reporting actual versus budgeted expenses for each contract

Implementing new A/P process to:

– To coach program managers in using management reporting

– To aid programs in managing expenses to hit budgeted numbers and service delivery to hit targets



– Designating financial analysts for each clinical program:

– To coach program managers in using management reporting

– To aid programs in managing expenses to hit budgeted numbers and service

delivery to hit targets

Designing and implementing CRM-based software solution to:

– Manage all RFP opportunities and proposal development and submission

– Manage all current payer contracts, including contact information, billing and

reporting, and summary actual versus budget expenses



Implement an overarching business intelligence tool on top of the EHR,

GL, and CRM systems to:

– Address the complexity of the contract financial performance reporting

– Simplify the process of allocating shared expenses each month across contracts

and programs

– Generate required service and demographic reporting

– Address executive and management metrics dashboard needs

Involving quality assurance and clinical leadership in providing

oversight to ensure performance targets are achieved

Technology Planning Case Study #3 -Workgroup


The Situation

Mental Health/IDD Authority

in the State of Texas

600 employees

$60 million operating

budget

16 locations

25 combined program /

service lines

Key Issues:

– Clinician Shortage

– Lack of local contribution to service delivery system

– Low per capita income; provide services to some the poorest zip codes in the country

– Historical reliance on State contracting and general revenue

– Staff in the field complain about documentation (want mobile)

– Difficulty keeping OP in the black

Need to grow caseloads and do more with less

Staff pushback

– Management complains about poor data and reporting capabilities



#1

#2

#3


Strategic Initiatives: Discussion

Where does Technology fit in?

How will it affect the budget?

Technology Planning Discussion Questions


Case Model Discussion Questions

Organizational Situation

– What is your assessment of the Center’s current situation?

– What questions would you want to ask the CEO?

Developing A Plan

– What options do you see as available to the Center at this point? What are the

advantages and disadvantages of pursuing each of them?

– If you were to replace the current CEO, what tactics would you include in your

plan for the next 90 days?


Review Of Technology Planning Process

Develop Key Performance Indicators

Develop Detailed Implementation Action Plan

Develop Budget & Financing Plan

Develop Operational Plans – Marketing & Business Development, HR & IT

Identify Options for Achieving Objectives - Strategies, Tactics, Markets & Services

Gather Internal Information/Internal Analysis – Service Portfolio Analysis

Gather External Information/External Analysis – Trends & Competitors

Review/Establish Mission/Vision/Objectives


Review - Technology Planning To Budgeting

Organizational Strategy & Vision For IT

Current IT Environment: Gap Analysis &

Assessment

Future IT Environment: What It Will Look Like &

Performance Expectations

Detailed Plan

Budget & Other Resource Requirements

-Michael Porter

“Finally, strategy must have continuity. It can't be constantly reinvented.”

Questions & Discussion

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Documents

Do You Have The Right Tech Strategy? An Executive Seminar ...€¦ · Strategic planning is your organization’s process of continually assessing its internal capabilities and the