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Episode Overview
LISTEN TO THE EPISODE:
Host:
Daniel J. Marino
Managing Partner, Lumina Health Partners
Guest:
Annette Kenney
Healthcare Strategist and C-Suite Executive
Daniel Marino:
Welcome to value-based care insights. I am your host, Daniel Marino. Over the last couple of years many organizations have started to ramp up their strategic planning process. If you recall back during the Covid years, it seems like strategy was kind of put on the back burner. Many organizations were forced to deal with many, put in place a lot of the tactical type initiatives just to accommodate and deal with many of the issues that we saw around Covid, around changes and reimbursement around some of the industry and political changes. So I think that area really from 2020 2021, up till maybe 2023 was really around the tactics to keep all of our healthcare organizations moving forward. And then over the last year, year and a half we've started to see strategic planning come in to come into play more for organizations and to really think about how they can position themselves in the market and really accommodate a lot of the of the needs of their of their patients in their communities. But the strategic planning process is difficult. It's difficult, from the standpoint of not necessarily creating the plan. Actually, that's the easy part. But activating the plan. Putting a document in place that becomes a living, breathing component of your organization that allows the all of the leaders, the team members to really rally around our common goal and to think about where we want to go as an organization and how we get there. That's really the key to that strategic plan. And it's really around that activation.
Well, I'm excited today to have a strong colleague, somebody who's very knowledgeable in the strategic planning process. Annette Kenny. She's a former chief strategy officer for a large healthcare organization. She has put together numerous strategic plans both for the organization for clinical service lines for value-based care. And not only has she been successful in putting forth the plan, but has been very successful in helping to activate that plan. Annette, welcome to the program.
Annette Kenney:
Well, thank you, and thank you for the kind introduction. Dan.
Daniel Marino:
So when you think about the strategic planning process, why do you think organizations struggle so much with the activation of that plan?
Annette Kenney:
You know it. It's interesting. And I appreciate your comments. Early on, because you know the bottom line, they struggle because healthcare is so complex, right? There are so many things we could be doing any given day. You're distracted by a number of operational challenges, financial challenges, local market challenges. It's, you know, you. You need to actively prioritize on an ongoing basis to make sure you're working on the right things. And you're allocating resources to the right things. And so that's where strategic planning comes in. It's a discipline that allows you to do that. Exactly how it's done in different organizations may be a little different, but it's always an opportunity to bring order to chaos. And I think organizations struggle because they're just distracted. And it's a little bit ironic, because the strategic planning process can help you from being distracted. But yet it often gets pushed aside.
Daniel Marino:
Well, absolutely. And we've done a lot of strategic planning over the years. And one of the things that I often when I go into the strategic planning process. I often say to a lot of the leaders, what do you? Why do you want to do this? Right. What do you wanna accomplish? Is it that you want to grow into new markets? Are you doing this as a defensive measure to make sure you're competitive against you know your other market competitors? Are there some industry things that are changing? Are there other areas that help to say, motivate the team around strategic planning? What are those core things other than you know, what I had mentioned? What are the other core things that really need to be considered as you kind of define the why around strategic planning?
Annette Kenney:
Yeah. Well, I think you know, some of the why will be a little bit different for every organization. But every organization is dealing with challenges and prioritization that can benefit and resource allocation quite frankly, that can benefit from a strategic planning process. So you don't have to wait for a seismic event to start thinking, “Oh, wow! Now we need a strategic plan.” It needs to be, as you mentioned, a living, breathing process. Not that not a document, but a process. So that you're working on the right things. So I, I tend to think about people, process and data. It doesn't quite answer your question. I think your question is around what kinds of things will motivate an organization to do a strategic plan. Again, I'm advocating for it being built into your regular process. So you don't have to wait for something to trigger a strategic plan. But one experience I've had most recently was a merger so part of an organization that came together in pieces over the Covid period quite frankly between 2020 and end of 2022. And you can imagine doubling its size in that period of time, in that period of time of incredible chaos. And you know that was a trigger. We you know we thought hard about saying, Is this the right time to do strategic planning? Or should we wait until the dust settles? In retrospect it turned out to be exactly the right time to do strategic planning because it helped to form the basis of our culture. It helped to provide clarity for the organization. And it helped us really early on to align people and energize people around where we were going as a new organization.
Daniel Marino:
Well, and that's such a that's such a great example. Because, you know you, a key component of a strategic plan is addressing the culture change and the and currently where we're at now and where we want to go. But I think another interesting point that you brought up is alignment. So when you're going through something as challenging and potentially as disruptive as a merger could be, I mean, it's exciting as it is, it's also very disruptive to the organization.
Annette Kenney:
Okay.
Daniel Marino:
Getting leaders getting the team getting employees getting. you know, even the community aligned around why you want to do this and what the end goal is, and how we're going to do it from a strategic standpoint. God! I can. Only I can only imagine. I mean that that's that has to be the biggest benefit coming out of it.
Annette Kenney:
Yeah, in. In, in my experience, it has been. It almost feels hokey in a way to focus on mission vision values it, you know, it sounds like, just a lot of a lot of verbiage. But it's really meaningful what we did again, very early in the merger is engage community members, employees throughout the organization managers, of course, executive leadership as well in defining what's what is our mission? What is our vision? What does it? What are values? You know? How? How do we want to behave as an organization? What does success look like long term. What's important to the people who are our stakeholders, our community as well as our workforce. So we actually hit the ground running with focus groups with surveys. Just a lot of talking to people. I call it a listening tour. That's probably for 3 months or so. But we engage people throughout the organization and really kind of learned that there was common ground, even though we're all coming together with different perspectives, different experiences. Maybe even different goals. We have a lot of things in common, and that helped to inform again our mission vision values which in turn help to inform our executive leadership team around. Okay, what do we have to do to prioritize all things we have to do in order to achieve these results that are going to be so meaningful for our stakeholders.
Daniel Marino:
Well, and I think I that's a that's a key part of it. There's so many, especially with a large organization, but even small organizations. There's so many competing priorities, and everybody has an opinion of where to go. I liked what you mentioned about trying to get the data and to listen and to understand where the different parts of the organization is. but also making sure that somebody has to help bring the group together to identify the strategic priorities. Otherwise, I think you just get wrapped in this.
in this, this wheel of never ending movement without really identifying what direction we want to go. When you when you think about, then the success of that strategic plan defining priorities has to be key. I would also think the data. What are some other elements that you in your experience have been successful to the strategic planning process?
Annette Kenney:
Well, I think you touched on it. You know, I mentioned people process data. People's all around alignment, right? And educating them in communicating to them the process right? And what's their role in that process? Because you mentioned as well, It's all about execution. I don't care what the plan is if we don't execute the plan, and you need the people who are doing the work to execute the plan. So aligning them through the process, getting engagement with them throughout the process and fundamentally educating them to the process. It's kind of a funny thing, because I've been doing this for so long, I take it for granted. But you bring teams together, and whether it's where people have been in the career or how their organization has functioned. You can't assume that everybody understands how a strategic planning process works or what their role is. It is in it. People don't necessarily connect the dots between strategic planning and operational budgeting and capital budgeting and incentive planning and business planning. They don't because they haven't been through that process. So having a process communicating that process and working with people to get them engaged and get them excited about it. So they understand their role. I think all those things are critical.
Daniel Marino:
If you're just tuning in, I'm Daniel Marino. You're listening to value-based care insights. I'm talking today with Annette Kenny, former chief strategy officer of a of a large healthcare system. And we're talking about the strategic planning process. Annette, you know. I interesting comments in terms of being able to make sure that you're educating folks on what the strategic plan is, and then the process. How do you make sure in the strategic planning process? Maybe at the end of the plan that you're not taking on too much?
Annette Kenney:
That is one of the biggest challenges. I have not been with an organization that hasn't complained that they have too many priorities. And they, you know. I wish I had the match exhausted to cut that down. The fact is, there's a lot of enthusiasm. There's a lot of really good ideas, right? And they're all good ideas. And there's a lot of competing forces that you know make the process very complex. I think it requires a certain level of discipline. You know I you, you go through a process, and as I mentioned, there are many ideas that are valid. But you can use data. You can weigh these opportunities against each other. You may not have the time to do a fully developed business plan, but you know enough.
Daniel Marino:
Yeah.
Annette Kenney:
Is this initiative weigh against that initiative, and does it? What? What is going to accelerate your achievement of the goals that you're setting out. So I think, having those goals, making sure they're measurable. helps a lot.
Daniel Marino:
Yeah, I agree with you. And I think, having the goals of what you want to. What? What do you want to get out of this strategic plan, I think, is absolutely key and sort of having that North start right? So why do we want to do the plan? What are we helping to accomplish out of the planning process? What's our goal at the end of that planning process, I think, is really important. A colleague used to save. If you don't. If you don't have a goal, if you don't know where you're going, any road will any road will take you to, you know, to nowhere. Right? So you need to, you need to have that idea of where you're going. You keep on mentioning the data. Let's talk a little bit about that for a second. Obviously, data is important to the strategic planning process. But I also feel like you could have too much data. Right? So what's that balancing act between having enough data and what would be considered kind of that? Enough data versus data overload.
Annette Kenney:
Yeah, well, I think you hit on a common challenge, too. Is that people say, Okay, we don't have the data. so we can't do our strategic planning process. You know enough. You probably know enough. I mean, certainly you need good baseline financial data. You know what your quality metrics are your patient experience. You kind of know where you are. You don't have to wait for perfect data to execute or develop a strategic planning process. It just needs to be good enough so that you establish some credibility with your stakeholders. Right?
Daniel Marino:
The data, especially the market data. And this is where I see a lot of the challenge come in. The market data needs to inform your strategic planning process. It doesn't define your strategic planning initiatives. And I and I get the impression sometimes when I'm when we've done some strategic planning and worked with organizations, some leaders dive into the data because they think that's going to give them the answers when you can need to come up with the answers yourself. Right? The data needs to inform. It doesn't direct.
Annette Kenney:
That's absolutely right, absolutely right. Again, it gives you a sense of what your baseline is. If you have a sense of what your vision is and the challenges in front of you. You know, you can use that data to say, Okay, we've got to get from A to B, and that helps you to find your initiatives right? And again, it does not have to be perfect. In fact, I would encourage organizations to resist too much data. Somebody needs to know all of this information, but your stakeholders don't need to know everything.
Daniel Marino:
Yeah, it's true.
Annette Kenney:
Right, they need to know what is going to be. The information is necessary to make an informed decision.
Daniel Marino:
Yeah, right.
Annette Kenney:
And that's all. So.
Daniel Marino:
Sometimes I just I think folks just get too buried in that in the data. So Le let me switch gears just a little bit and talk about the activation component of the plan. Because again, I feel like. obviously, the plan is important, because that's the roadmap that tells you where you want to go. But if you don't, if you don't have the key elements that help you to activate, then all the plan is is a series of good meetings. in your experience. What are the activation steps, or what are the key things that have to come out of the plan that allows the organization that next day to begin rallying the troops and begin getting the activation components in place?
Annette Kenney:
Yeah, I think it begins with something I alluded to earlier, which is communicating the process so people understand, you know, how a strategic plan connects to all of the other many processes we have in place in healthcare. You know the cat, you know, people don't necessarily associate budget process. But it's it needs to be very, very much aligned. Same with operating budget. I mean, this is where you make sure you have the resources to do what you said. Your strategic plan is so I think educating people to the process, how it links to other processes that they may be more familiar with is particularly operational leaders. Cascading the plan, you know, we talked about aligning people through engaging early process. So they get a taste of what this plan is. But then they need to say they play a role leaders at all levels, play a role in cascading that plan throughout the organization. So they can activate their teams and prioritize effectively with their teams so that they're, you know, focusing on the things that that the strategic plan is saying is our most foreign.
Daniel Marino:
Right? Right? Right? Do in your experience when you've done strategic planning. And I guess it depends upon the type of strategic plan. Obviously, the leaders have been health care Leaders have been involved. How have you engaged the board in your strategic planning?
Annette Kenney:
Yeah. Well, the board is critical. The board needs to. I mean, ultimately, they're responsible for approving the strategic plan. So I have engaged the Board early on as well. I think the Executive leadership team needs to really define the process lead this, but they need to engage the Board as critical stakeholders, so they need to stay educated. that doesn't happen to happen in just a strategic planning exercise. It can happen through regular board meetings. Just keeping a pulse on what are the forces that are impacting our ability to succeed as an organization? I think that active education of Board members, not just board members, but leaders throughout the organization is really critical. And they board members and other leaders need to understand the why. the why behind things, and you know, so you can engage them in a series of retreats, and but also in board agendas. Once the plan is approved. Keep it fresh, right? Structure, the agenda around the key elements of the strategic plan and bring the topics forward. You say, okay, we're making progress on this front. We're not making progress on this front, but keeping that ongoing engagement around what the strategic plan said, how we're proceeding against it, what forces might be getting in the way.
Daniel Marino:
Sure.
Annette Kenney:
Of us achieving these plans and then engaging them about. Hey? Sometimes you might have to pivot right? Best. Late plan. Sometimes things happen. You know. So board education ongoing board engagement is really critical.
Daniel Marino:
Well, and I think defining the role of the board even during within the activation phase, right? Because the board should have some type of a role as well as providing strategic guidance. A lot of times board members have great relationships with their community leaders that allows you to position the organization differently or allow some level of activation, which certainly is key to the overall process. So if you're if you're thinking, I'm going to take us back. Then, you know, went over a number of a of elements. The data process, people, I think, is absolutely key communication education in the in the strategic planning process is really important. If you were to think through the 3 or 3, 4 5 elements of a strategic plan that really makes it effective, what would they be?
Annette Kenney:
I think. really saying it's not about the plan. It's about the execution. And you know, keeping that execution in focus is key to actually getting it done. Yeah, so, but in terms of the key elements of the strategic plan. Yeah, I do think we touched on that? It's it's getting the right alignment. It's communicating with people getting them energized around that and doing that ongoing basis. Right? I mentioned with board meetings, setting agendas with the strategic plan in mind. Same with management team meetings, same with town halls, and that kind of thing. Touch on the strategic plan each time. So you make it living, breathing.
Daniel Marino:
You typically in your, in a lot of your plans, do you include measures of success? In other words, how you track whether the plan is on is on pace, or whether you need to pivot.
Annette Kenney:
Yes, absolutely and that's where data comes in. And also process as well. You look back and say, okay, we said we were going to accomplish these things. I mean, I like looking at them on a quarterly basis. Right? Are we.
Daniel Marino:
Really having a scorecard right.
Annette Kenney:
Yes.
Daniel Marino:
You're going to track it!
Annette Kenney:
So having a simple, simple, limited corporate scorecard. Where you can actually say, Hey, we're on base, or we're not on base. And then you can dive deeper into that. So I think that that is absolutely critical to it. And that is where data comes in.
Daniel Marino:
Yeah. Well, I'll tell you. I you know I'm a big proponent of the strategic planning process I've said for years. If you don't have a plan, if you don't know what direction, then you're sort of, you know a boat without a rudder, just spinning in circles. So I think it's really, really key to have that if, and I know many of our audience members either are going through a strategic planning process, or maybe embarking in the strategic planning process, they enter into 2025, any final thoughts, or maybe suggestions on how some of our listeners can get a hold of you if they have some specific questions?
Annette Kenney:
Sure, absolutely, you know. And I would encourage people say that you don't have this muscle in your organization, develop it because it is really effective and helping your workforce and helping you achieve your goals and achieving sustainable success. So I developed that that muscle. You can do it independently. But you could also work with consultants. you know, and that brings a certain level of objectivity that that kind of helps along with the process so you can get a hold of me. At akenney@ahiconsulting.org and be happy to talk you through. If you have any questions.
Daniel Marino:
Great. Well, thanks, Annette. I really appreciate your time. This, again is an is an important topic. Certainly, when you think about strategic planning either for the organization as a whole or even a clinical service line. The more that you can think strategically about your direction. I think it's really key for the organization. So I want to thank you for coming on the show. Really appreciate your thoughts and your comments.
Annette Kenney:
Thank you. It's a real passion of mine, and I could go on and on, but I appreciate the opportunity.
Daniel Marino:
And I want to thank you, our listeners, for tuning in until the next insight. I am Daniel Marino bringing you 30 min of value to your day. Take care.
About Value-Based Care Insights Podcast
Value-Based Care Insights is a podcast that explores how to optimize the performance of programs to meet the demands of an increasingly value-based care payment environment. Hosted by Daniel J. Marino, the VBCI podcast highlights recognized experts in the field and within Lumina Health Partners
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