Corporate Performance Management Best Practices: A Case Study Approach to Accelerating CPM Results

325 Pages·2013·3.01 MB·English

by  Bob Paladino

Additional praise for
Corporate Performance Management
Best Practices
“Bob Paladino’s writing blends his skill as a business leader, consultant, and
teacher to deliver guidance that can harness the power of integrated effort toward
the same goal.  As you read it, you can visualize the difference it makes when
individuals and departments are working with a compelling and clear end in
mind all while chartering their improvement and progress toward the goal.
Whether Bob is ‘hands on’ helping businesses achieve the performance they
desire or putting his principles into a guidebook for business leaders, he always
leaves you and your organization with a different mindset and a set of tools to
raise the bar and achieve far more than what existed before.
For any business leader wanting to accelerate performance and get his or her
organization moving in a new direction, Bob’s Corporate Performance Manage-
ment Best Practices supplies the roadmap, toolkit, and guidance you need.  With
just a few talented people who believe in your vision and the principles in Bob’s
book, you can achieve your mission and achieve results that your team prob-
ably didn’t imagine possible.”
—Brad Wheeler
President, Genworth Financial Trust Company
Bob illuminates a clear path to developing and executing corporate perfor-
mance management. This proven, easily-understood and executed method to
connect strategy, metrics and performance management is one from which
companies of any size can benefit.”
—Mike Premo
President and CEO, ARC Corp
“Many companies struggle to successfully implement best practices and drive
strategy through their organization. Bob Paladino transforms theoretical
approaches and applies them to real life case studies by sharing the ways com-
panies have adopted and adapted the use of the balanced scorecard and per-
formance management within their companies. Bob continues to demonstrate
that success is possible no matter the industry, the size of the company or the
operating culture.”
—Joseph Martucci
Performance Lead, PSE&G
“Bob Paladino’s straight-forward, easy-to-use methods break down the obsta-
cles keeping organizations from world-class performance. This book extends
Bob’s approach with tools to make even the best organizations better.”
—Mark C. Lack
Manager, Strategy Analytics & Business Intelligence,
Mueller, Inc.
“Much has been written about the theory of creating strategic alignment and
creating a sustainable improvement system. Theory is sometimes hard to
implement.  Bob leverages his practical experiences in showing how his con-
cepts have been implemented and proven successful. His are the best “how-to”
books on the subject.”
—Mark Voigt
Senior Director, Diebold, Inc.
“Bob Paladino’s career experience as a chief performance officer comes to light
in this book that provides a roadmap for any company to accelerate its busi-
ness improvement program. The book is grounded in actual case studies, so no
there is no theory, but rather a practical template to improve your financial,
customer, process, and people results; public, nonprofit and government orga-
nizations take note.”
—Ted B. Miller, Jr.
President, 4M Investments, LLC
Chairman, Intercomp Global Services
former Chairman, Crown Castle International
former Chairman, M7 Aerospace
“Bob Paladino’s wisdom and experience are evident in this book. The true value
is from the logical, real world case studies focused on improving performance,
whether a novice or experienced organization.”
—Robin Ellingson
Learning & Development Director
Midwest Fortune 500 Insurance Company
Corporate Performance
Management Best Practices
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The Wiley Corporate F&A series provides information, tools, and insights to
corporate professionals responsible for issues affecting the profitability of their
company, from accounting and finance to internal controls and performance
management.
Corporate Performance
Management
Best Practices
A Case Study Approach to
Accelerating CPM Results
BOB PALADINO
John Wiley & Sons, Inc.
Cover design: John Wiley & Sons, Inc.
Cover illustration: © Christos Georghiou/iStockphoto
Copyright © 2013 by Bob Paladino. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data
Paladino, Bob, 1959-
Corporate performance management best practices : a case study approach to
accelerating CPM results/Bob Paladino.
p. cm. — (Wiley corporate F&A series)
Includes bibliographical references and index.
ISBN 978-1-118-47858-5 (cloth); ISBN 978-1-118-50746-9 (ebk);
ISBN 978-1-118-50769-8 (ebk); ISBN 978-1-118-50745-2 (ebk)
1. Organizational effectiveness—Case studies. 2. Performance—Management—
Case studies. 3. Management—Case studies. 4. Health care reform—Case
studies. I. Title.
HD58.9.P348 2013
658.4′013–dc23 2012030209
Printed in the United States of America.
10 9 8 7 6 5 4 3 2 1
To My Family
Thank you to my parents, Albert and Dorothy, for their continued
support. Special admiration to my wife, Ellen, and to my children,
Joseph and Natalie, for keeping me inspired.
To Our Freedom
I am grateful to have freedom of speech and faith and have immense
respect for those who have preserved it. Consistent with prior books, I
continue to donate royalties to fund injured soldiers and to the United
Flight 93 Tower of Voices Memorial near my home. It contains
40 wind chimes; sounds of the wind are a living memory of the
40 persons honored, many whose last contact was through their
voices. To express your appreciation, please go to www.honorflight93
.org and www.saluteheroes.org, both IRS Section 501(c) (3) nonprofit
organizations.
And unto whomsoever much is given, of him much shall be required.
—Mark 12:48
To Principled Living
I tithe earnings to numerous nonprofit organizations to assist others to
become self-reliant, self-assured, and prosperous.
Be great in act, as you have been in thought.
—William Shakespeare
Contents
Preface xi
Acknowledgments xv
Chapter 1 Introduction 1
Corporate Performance Management Best Practices 4
Executive Views on CPM 7
MidMichigan Awards, Honors, and Results 9
My Promise 13
Chapter 2 Corporate Performance Management
Core Best Practices 15
Principle 1: Establish and Deploy a CPM Offi ce and Offi cer 16
Principle 2: Refresh and Communicate Strategy 17
Principle 3: Cascade and Manage Strategy 19
Principle 4: Improve Performance 20
Principle 5: Manage and Leverage Knowledge 22
CPM Maturity Model and Best Practice Pentagon
Scoring Diagnostic 25
Note 26
Chapter 3 Corporate Performance Management at
MidMichigan Health 27
Strategic Context and CPM Approach 27
MidMichigan Health CPM Program Overview and Journey 30
Principle 4: Improve Performance, 10-Step Business
Improvement Approach 31
Principle 4: Improve Performance, 10-Step Business
Improvement Case Study 35
Summary 47
Notes 48
vii
viii ◾ Contents
Chapter 4 Principle 4: Improve Performance—
The MidMichigan Health System Journey 49
CPM Maturity Levels for Principle 4: Improve Performance 50
Summary 76
Note 77
Chapter 5 Improve Performance Best Practices 79
Core Best Practices 80
35 New Best Practices 80
Summary 92
Notes 92
Chapter 6 Shared Services: 10-Step Team Best
Practice Cases 93
Finance: Accounts Payable and Disbursements 10-Step
Team Case Study, Smart Spending 94
Finance: Financial and Management Reporting 10-Step
Team Case Study, Streamline Information 113
Human Resources: New Employee Requisition 10-Step
Team Case Study, Simplify Hiring 129
Supply Chain Management: New Product Requisition 10-Step
Team Case Study, Manage Innovation 146
Note 167
Chapter 7 Support Units: 10-Step Team Best
Practice Cases 169
Laboratory Services 10‐Step Team Case Study, Optimize the
System 170
Pharmacy Services 10‐Step Team Case Study, Smarter
Formularies 190
Notes 206
Chapter 8 Core and Specialty Businesses:
10-Step Best Practice Cases 207
Emergency Department 10‐Step Team Case Study, Improve
Throughput, Customer Scores, and Revenue 208
Care Coordination 10‐Step Team Case Study, Improve
Medical Outcomes 221
Contents ◾ ix
Orthopedics Department 10‐Step Team Case Study,
Grow the Business 240
Women’s Health Services 10‐Step Team Case Study,
Grow the Business 258
Note 277
Chapter 9 Improve Performance Self-Scoring
Diagnostic and Roadmap 279
Maturity Model Criteria 280
Five Key Principles of CPM Best Practice Blueprint 281
CPM 10-Step Improve Performance 35 Best Practices Blueprint 284
Summary 286
About the Author 287
Index 289