Aligning Performance Evaluations with Organizational Strategies

Holly Winn, Vice President, Human Resources and Ancillary Services

Best Practices Event Series Brought to you by the

Wisconsin Office of Rural Health In Partnership with the

Rural Wisconsin Health Cooperative

Funding provided by the Medicare Rural Hospital Flexibility Grant for 2012-2013

Best Practices Event Series 8:30 Arrival and Check In 9:00 Welcome by Beth Dibbert 9:15 BRMH Presentation 11:15 Closing by Beth Dibbert 11:30 Lunch 12:00 BRMH Tour

Who We Are

• Rural community hospital

• Accredited critical access facility

• Independent, non-profit

• Located in West Central Wisconsin

• 315 Employees/206 Volunteers

• Physicians (employed and non-employed)

• 60 minutes from tertiary hospitals

Where We Were

• Goals with no alignment

• Organizational strategies not communicated well

• Flat engagement level

• Missed deadlines

• Subjective vs. Objective

• Paper, paper, paper

Performance Appraisal Paper Copy

EXCELLENCE E S D U POINTS BRMH identifies quality as a distinguishing characteristic of individual and organizational performance. 3 2 1 0

1. Understands and actively participates in department and hospital performance improvement.

2. Demonstrates quality is an intrinsic part of every employee’s work environment and practice.

3. Responds to customer complaints or concerns appropriately. 4. Demonstrates effective reasoning ability and judgment in all aspects of

performance.

5. Understands and effectively utilizes hospital and departmental policies and procedures relevant to position.

6. Knowledgeably promotes BRMH’s service-oriented philosophy and commitment to improving the provision of community-based health programs/services.

7. Participates actively on inter-disciplinary committees or teams. TOTAL

Performance Appraisal Guide EXCELLENCE: BRMH identifies quality as a distinguishing characteristic of individual and

organizational performance. 1. Understands and actively participates in department and hospital performance improvement.

Exceptional: • Actively participates in 2 or more department improvement projects and/or 1 hospital project

(formal and/or informal). • Is a leader/chair of a PI Task Force Committee. • Demonstrates leadership role on a hospital committee to implement a suggestion. • Uses knowledge and skill to teach, coach and/or mentor others about the PI process. • Viewed by others as a resource person relating to the PI process.

Successful: • Applies PI concepts in daily performance of duties. • Initiates and presents a PI Suggestion Form to PI Council (PIC)/Administrative Director. • Submits 1-2 ideas to the suggestion system relating to PI, H&S, and Management. • Leads the implementation of a suggestion. • Suggests possible PI projects to Administrative Director.

Developing: • Needs reminders/assistance to understand and or participate in PI activities. • Inconsistently incorporates PI into everyday practice, participating in PI project only when

assigned. • Manager may be new to the position and learning about the organization, duties, and/or processes.

Unsatisfactory: • Demonstrates little or no knowledge of PI process or suggestion system, demonstrating lack of

motivation/willingness to learn about the PI process. • Refuses to participate in the PI process when asked. • Unwilling to follow through on suggested ideas. • After coaching/mentoring, Manager continues to be non-compliant with policies/procedures

relating to the PI process.

Our Transformation Begins • Defined objectives

– Initial objective was to streamline our performance appraisal process and reduce or eliminate paper

– Support our existing appraisal process – Provide us with a tool that would assist in goal alignment

• Networked – Reached out to ASHHRA, SHRM, other rural facilities, large

system hospitals

• Researched – Assessed functionality of three products – Received demonstrations, checked customer references

Finding a Solution

• Why Halogen? – Would allow us to use our current practice for

performance reviews – Functionality – Ease of use – Peer review capabilities – Goal setting capabilities – Succession planning capabilities – Performance Journal

Finding a Solution

• Why LEM (Leader Evaluation Manager)? – Transparency – Functionality – Ease of Use – 90-day plans – Weighting – Pillars

Step One: Automation

• Automated our current practice • Self appraisals, peer reviews, manager meetings • Rate both job specific competencies and

personal/interpersonal skills • Three ratings - Exceptional, Successful or Developing

– Includes criteria to help identify which rating should apply

– Attach supporting documentation or development plan

• Appraisal scores drive merit increases

Results

More Results

• Have continually enhanced what we offer to managers and staff – 3 and 6 month appraisals for new hires – 360 reviews for every employee, including new hires

• Speeds up Joint Commission audit • Performance Journal has become a terrific

repository for employees and managers – Allows them to track accomplishments, recognition

throughout the year

Step Two: Goal Setting and Alignment

• Initially set goals within appraisal process • In 2010, set up a separate process to focus on alignment • Started with organization-wide goals from

our strategic plan • Managers develop and align their own

goals with organizational goals, then meet with the employee to do the same

• Quarterly meetings to review status and progress • New employees added as they become eligible – no

waiting to participate

Step Three: Pay For Performance

• Implemented in 2010 • Everyone participates! • Recognizes staff contributions to the success of the

organization • Not meaningful without goal alignment • Employees are focused on organizational results and

their role in achieving them • Managers know how to direct their time, what is

important • If it doesn’t align, do you need to be doing it

So, did all this effort pay off?

Increased Employee Engagement

Lower than Benchmark Turnover

Improved Bottom Line

Other Measures of Success

• 2012 & 2011 Modern Healthcare's Best Places to Work in Healthcare

• The Jackson Group’s Laureate Award for Workplace Excellence 2007, 2009, 2010, 2011and 2012

• May 2011 Studer Group® Health Care Organization of the month winner

• 2012 & 2011 Five Star Excellence Award for Inpatient overall quality of care rating as "excellent" - top 10%

• 2011 Top 100 Critical Access Hospital’s

Tips for Success

• Communicate regularly with employee to share results – Quarterly employee forums – Monthly department manager meetings or weekly

forums • Hold regular education sessions for staff

– HR hosts regular training sessions – one hour, once a month

• Allow employees time to complete evaluation – Added computer lab – Takes less time than old paper process

Tips for Success

• Provide an easy way for employees to keep track of accomplishments throughout the year – i.e. Halogen’s Performance Journal

• Be proactive, not reactive – Focus your organization on pay for performance

helps the organization reach goals mandated by the Government’s Pay for Performance

– Positions the organization to adapt to changes as required

Questions?