Management Lessons from Mayo Clinic
Dörthe PrestelBUS 550 Minder ChenMay 24, 2011
Practicing destination medicine
Historical Background Dr. William W. Mayo, settled in Rochester, MN, in 1863 sons, Drs. William J. Mayo and Charles Mayo, joined 1883
/1888 1893 patients came from 11 different states to receive medical
care 1914 Mayo Clinic world's first integrated private group practice
was found 3 campuses: Minnesota; Arizona; Florida 1983-2003: number of physicians & scientists increased from
838 to 2,700 Number of employees increased from 6,000 to 42,000 Patient care revenue increased from $345 mill to $4 bill
2003: 500,000 patients served at 3 campuses
How it worksMayo clinic is not a single-specialty boutique but rather a department store of medical care capable of addressing virtually all medical needs from cancer care to cosmetic surgery to joint replacement or organ transplantation
MissionTo inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research.
3 Key Principles Continuing pursuit of ideal service, not profit Continuing sincere concern for the care and
welfare of individual patient Continuing interest by every member of staff
in professional progress
Human Resources Top of talent pool: team players,
commitment to high quality care and service, positive attitude, strong work ethic, understanding of cultural diversity
Hiring for life: behavioral interviewing techniques > extensive, expensive process
Employees are salaried, no incentive payments > unbinding self interest
Technology / Infrastructure 1 1907 implementation of medical
records and MR numbers 1914 Conveyance systems to move
medical records 1928 lifts and chutes system Strategic investment of millions of
dollars each year in industrial engineering
Technology / Infrastructure 2 Starting in the 1990s, in 2005 EMR
replaced paper charts In- and outpatient records are instantly
available to Mayo caregivers via 16,000 computer terminals on site
7.5 million transactions processed between 8-9 am
Around noon up to 15 million transactions
Scheduling 1 Rapid growth in 1950s urged development
of central appointment desk (CAD) Initial system adopted from railway
company Pullman 1950s: card system 1960s: telephony system replaced card
system
Scheduling 2 1970s: computer technology with
software ideas from Boeing and NASA to accommodate complex rules of Mayo schedulers
establish time intervals between appointments and determine length of appointment types < using stop watches
2005: genetic algorithm system
Strategy Branding a labor intensive services company Health management is the key business
strategy - identifying population health concerns, targeting those issues proactively, and gathering the information needed to measure progress over time
Marketing strategy: customer and employee satisfaction, Facebook, and Podcasts
Collaboration EMR, internal paging, telephone and video
conferencing, physical spaces that encourage communication
Using cross-functional teams > using Six Sigma and Lean
net operating income increased by 40% in 3 years
85% of patients complete clinical itineraries in 5 business days
Radiology department reduced time per appointment by average of 6 minutes
Team Leadership Model Physician-led institution: clinical practice, education,
research Physicians experience learning-by-doing leadership
training at the clinic while practicing medicine Physician leader + administrator = marriage Administrative partner = management coach,
confidant, reality checker, implementer Balancing business-vs.-caregiving tensions Teaching for tomorrow’s patients – its okay for highly
trained providers to ask for help > strong collegial attitude
Destination Medicine Each year 140,000 patients travel more than
120 mi to receive medical care at Mayo Clinic Patients receive efficient, time-compressed
care that can usually provide definite diagnosis and sometimes initial treatment – including major surgery – within 3 – 5 days
Scheduling system is backbone of destination medicine
Learning from Mayo 1 Customer demand is unevenly spread Customer needs are diverse Speed and accuracy are essential to performance Multiple service providers contribute to customer’s
service experience Service chain is complex
Combining talent where its needed, encourage and enable internal communication, foster organizational competence
Learning from Mayo 2 Molding firm’s resources and talents to each
individual customer Practice “patience” hiring Invest in systems that help employees practice
well and encourage to teach coworkers Continuously stress organizations core values
Candidates for organization designs like Mayo: high reliability organizations – atomic energy plants, aircraft carriers, petrochemical plants
Conclusion Cutting edge advantage of Mayo – TIME! Mayo clinic is constantly working on solving
the customer’s whole problem, using technology to support values and strategy, and innovating with systems engineering
However, Mayo Clinic does not work flawless – 85% success in their goals
How will they be affected by healthcare reform?
Quiz
Which of the following is NOT a success driving factor for Mayo Clinic?a) Strong organizational cultureb) constant innovationc) Time efficiencyd) Location of their campuses
Thank you for listening.
Works Cited http://www.mayoclinic.org/rochester/?
wt.srch=1&wt.mc_id=google&keyword=minnesota_Mayo_Clinic_Mayo_Clinic&campaign[...}
http://bush.tamu.edu/nonprofitspring09/PresentionBerry.pdf
http://ftmba.tamu.edu/research/publication/951/
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