The evolution Of project management, process engineering, And quality At LHI

The evolution Of project management, process engineering, And quality At LHI

PMI Chapter Meeting 09.22.2014

© 2014 Logistics Health Incorporated. All rights reserved.2

Discussion Points

› LHI Corporate Overview

› PMO – How It All Started

› Organizational Challenges

› Project Management

› Process Engineering

› Quality and Continuous Improvement

› Acceptance Study

› Take-A-Ways


Headquartered in La Crosse, WI

› LHI was founded in La Crosse in 1999 and has additional offices in

Detroit and Chicago

› Purchased by Optum in March 2011

› LHI employs nearly 1,000 people across its three locations


Competencies and Customers

Government

› U.S. Department of Defense

› Active/Reserve Components

› Timely medical processing for military applicants

› Reserve Components and National Guard Bureau

› Ensuring a medically ready force

› U.S. Department of Veterans Affairs

› Veterans Health Administration

› Timely disability exams for veterans

› U.S. Department of Health & Human Services

› National Institute for Occupational Safety and Health

› Care for first responders

Private-Sector

› America’s leading transportation companies: CSX, BNSF,

Union Pacific, Norfolk Southern

› Medical Support for rail and transportation

LHI is a trusted partner of the top government agency clients as well as several industry leading private-sector clients

4


Care for Mission Critical

› Service Types

› Medical, Dental, and Behavioral Health

› Pre and post-deployment medical readiness evaluations

› Comprehensive Veterans’ disability exams

› Service delivery platforms to administer large-scale health care programs to ensure

physical and mental readiness for duty

› On-Location Group events

› In-clinic Appointments

› Call Center Services

› Provider Strength

› Over 18,500 trained and credentialed network providers

› In 2013, LHI provided more than 1.9 million health care services and served nearly 480,000

service members and veterans

5


Organization Departments

Operational Support

Dental OperationsMedical OperationsAccount Services

Data ControlHealth Services Call Center

Workflow ManagementCustomer Service

Provider Network ManagementCredentialingGroup Events

Event Operations CenterVADEM

Distribution and Operations Center

Business Operations Human Capital

MarketingFinance

Information TechnologyProject Management Office

IT Platform: MedNet› Custom Developed to meet the needs of our business

› Workflow Management System that tracks orders from start to finish and uploads results to

customer databases


PMO – How It All Started

› PMO

› Established – November 2007 with

3 employees

› Run Projects and “Center of

Excellence” for Project

Management knowledge

› Mission

› Support the business goals of the

Organization by providing a

managed approach to projects,

process, and quality.

› Guiding Principle› The success of the PMO is weighed and

measured by the Organization’s ability

to meet commitments with confidence


Reactive Nature of Companies

› Innovation is born out of unique challenges

› Capitalize on industry concepts and right size for the organization

› Build your tool box


Organizational Challenges

› Challenge #1 – Everything got done

› Whatever it Takes – “The few the proud”

› Functional Operational Silos

› IT decides what you need

› Challenge #2 – Focus on the right projects

› Contract Implementations

› IT/Operational Blank Checks


Project Management Group

› 4 staged approach to Project Management

› Initiation, Planning, Execute, Close-Out

› Strong Matrixed

› Project Mix: Operational, Operational/IT, IT

› Project Architecture – 80% Cost Time Solution

› Goals – Increased Visibility, More accurate Estimates,

Strategic Alignment

› Project Discovery

› Concept Definition

› ROI Pipeline

› 80% Cost Time Solution

› Committee – Project Manager, Business Analyst, Process

Engineers

› Governance

› Ensure projects align with strategic direction

› Committee – VPs, Directors, and Program Managers

Project Discovery

ROI

Governance


Project Management Challenges & Benefits

› Challenges

› The Culture

› Information Technology Group

› Project Predictability and Visibility

› Dumping Grounds

› Level of Effort

› Leadership Accountability

› Benefits

› Project Visibility

› Customer Representation

› Focus on the “Right” Projects

› Start of Process Awareness



› Challenge #3 – Process Efficiency and Proactive Improvement

› Poor Process Awareness

› KPI Crisis


Process Engineering Group

› Analysis Infrastructure (AI) – Framework developed for process

improvement

› Process Flows

› Graphical representation of the steps in a process

› Process Binders

› Documented SOPs, WI, and Measures

› Measures

› Time studies; IT Platform

› Business Intelligence (BI)

› Focal point for all analysis -- Website

› Process Improvement Teams

› Meetings to discuss Process Improvements

› Review data from Audits

AI

Process Flows

Process Binders

MeasuresBusiness Intelligence

D

MA

I

CProcess

Improvement Teams


Lean at LHI

› Value Added Time - required steps customers pay for

› Value Enabling Time – necessary for delivery of services

› Non-Value Added Time - do not contribute to process, waste

Use LEAN to Eliminate “Waste”, Improve Process Flow

Future State Result Less Waste Reduced Process Time Higher Capacity Lower Cost

Current State


Process Engineering Challenges & Benefits

› Challenges

› The Culture

› Creation and Execution of the Framework

› Process Ownership

› Realization of Savings

› Benefits

› Process Awareness

› Vetting Work

› Six Sigma and Lean

› Business Intelligence Website

› Start of Continuous Improvement



› Challenge #4 – Quality had a very narrow focus

› Contract Customer Satisfaction and KPI Monitoring

› Not Aligned

› Unrealized Potential

› No defined Quality Management System


Quality Assurance Group

› Continuous Improvement

› Create a collaborative culture that empowers employees through data

driven process improvement

› ISO Certification 9001:2008 – 2013

› Defined Quality Management System and created Document

Management System

› URAC Accreditation – 2013

› Health Call Center and Core Standards]

› Strengthen Quality Process

› Audit, CAPA, Incident Management

› Quality Planning Process

› Pursuing NCQA Accreditation – 2015


Quality Maturity Curve


Quality Assurance Challenges & Benefits

› Challenges

› The Culture

› Benefits

› Unified Approach to Quality

› Quality Planning and Quality Control

› Auditing for Improvement and Conformance

› Documented Quality Management System

› Communication


LHI Model for Continuous Improvement

ISOAIProcess Flows

Process Binders

Measures

Business Intelligence

ImprovementMeetings

D

MA

I

C Lean



› On-Going Challenge #5 – Leadership Accountability

› Executive End-Run Around

› Show me the Money

› Leveraging the Framework


PMO Acceptance Study

Executive Buy-In

• Support

• Promote

• Accountability

Operatio

nal

Buy-In

• Acknowledgement

• Support

• Consensus

IT Buy-

In

• Acknowledgement

• Support

• Consensus


Take-A-Ways

› Right size methods

› Aggressive maturity

› Capitalize on a crisis

› Spring board to standardized process

› Communicate, communicate, communicate!

› Sometimes positive change requires a change in leadership

› Cannot influence and negotiate with everyone

› Do not become complacent

› “No growth in a comfort zone and no comfort in a growth zone”

› Do not underestimate the culture factor

› The most significant challenge will be changing the culture

› Leadership Accountability

› Essential to reduce end-runs around formalized and approved process


Contact me to learn more

› Wiliam T. Arnold, PMP

› LHI | 328 Front Street | La Crosse WI 54601

› 608.783.7560 x4608

› [email protected]

The evolution Of project management, process engineering, And quality At LHI

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