OK campers, if you have been following along with our meaningful use papers, you are ready for the first test of what you have learned. Put your books aside. We are having a pop quiz!
This quiz will not be too hard. It is multiple choice, so you can guess and maybe youu2019ll luck out. The answers are at the end.
1. Which has higher value for managing an organizationu2019s strategy?
a. A balanced scorecard
b. A strategy map
c. A club to whack underperforming managers
2. What is a more effective and higher ROI way to retain, grow, win back and acquire customers?
a. Spray-and-pray advertising campaigns.
b. Appeal to their greed and wager a u201ccanu2019t loseu201d bet opportunity.
c. Work backward, understand the unique situation of provider segments (and ideally individual clients) and tailor deals, offers, discounts, etc. to them.
3. True or false: The annual budgeting process is so broken and dysfunctional that it should be abandoned altogether.
4. Which is the correct relationship between performance management methodologies and business intelligence/data warehousing?
a. Performance management is a subset of BI/DW
b. BI/DW is a subset of performance management
c. They are unrelated
5. Which will have more impact?
a. Implementing and integrating many performance management methodologies without any embedded analytics.
b. Implementing and integrating fewer performance management methodologies, but embedding analytics in each methodology.
c. Maintaining the status quo and not implementing anything.
1. B. The strategy map has all the intelligence in it. The balanced scorecard, although also important, is the feedback mechanism that should be derived from the executive teamu2019s strategy map.
2. C. If you answered A or B, please email very soon, I have some helicopters for you to pass out.
3. C. u201cTr-alse.u201d Trick question; the answer is kind of both. The annual budget is typically obsolete even before the fiscal year starts. Budgeted department costs are padded by veteran managers who sandbag their numbers. Department budgets cave in to the loudest voice or strongest muscle and, worse, are overinflated by needless u201cuse-it-or-lose-itu201d fiscal year-end spending, as the next yearu2019s spending for each expense is typically incremented by 3 percent for inflation. But if you abandon the annual budget, what do you replace it with to satisfy the purposes of a budget? Those who asked that question get extra credit.
4. B. BI/DW is a subset of performance management, but they are inextricably linked together. Performance management deploys the potential power in BI/DW. Performance management applies BI/DW in the context of the problem to be solved or system to be optimized.
5. C. Doing nothing will have a sufficient adverse impact that eventually an organization will fail or go bankrupt. (The strategic inflection point for rehab providers is technology and intelligence driven, more about that at the Annual Meeting.) The more interesting question is whether A or B will have more impact. The answer is that it depends, but I lean toward B, because embedding analytics with outcome measures and performance indicators with a strategy will show more effect compared to having many performance improvement pots cooking at once.
No one ever said that tests were easy or fair. It is an even greater challenge working with rehabilitation providers who need answers to questions and have no source for intelligence from where to start! A healthcare information exchange or knowledge community is the first step in providing the data and management of clinical intelligence to point the way.