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Disruptive Innovation and Transformation in Healthcare Paul Plsek Consultant on Innovation and Change in Complex Systems, Atlanta Mark Hutcheson Chair of Innovation, Virginia Mason Medical Center, Seattle

Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

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Page 1: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Disruptive Innovation and Transformation

in Healthcare

Paul Plsek Consultant on Innovation and Change in Complex Systems, Atlanta Mark Hutcheson Chair of Innovation, Virginia Mason Medical Center, Seattle

Page 2: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Outline The call for transformation in healthcare Definitions of terms Understanding disruptive innovation and

transformation in healthcare Challenges

Page 3: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

The growing demand… Improved access… less waiting… faster

diagnosis and paths to treatment… more convenience… less anxiety … even better outcomes… more involvement in care… greater sensitivity to cultural differences…

Around the world, the talk is about the need for reforms US Europe (e.g., UK, Germany, Scandinavia)

Australia

Page 4: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

“Healthcare systems around the world are engaged in striving to make radical and sustainable changes through various programmatic approaches to improvement... The words…leave no doubt that what is being envisaged is big, bold, transformational change…Internationally there is a parallel realization and understanding that the design of the existing healthcare system will not deliver what is required for the future.”

Bate, P., Robert, G. & Bevan, H. (2004). The next phase of healthcare improvement: what can we learn from social movements? Quality and Safety in Health Care, 13 (1), 62-66.

Page 5: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

“The challenge is to bring the full potential benefit of effective health care to all… this challenge demands a readiness to think in radically new ways about how to deliver health care services.”

US Institute of Medicine “ Crossing the Quality Chasm”

Page 6: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

“You cannot solve a problem using the thinking that got you there”

Albert Einstein

Page 7: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex
Page 8: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Innovation…

The purposeful production of creative ideas in a given topic area, followed up by deliberate efforts to

implement some of those ideas.

Page 9: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Creativity... The connecting and rearranging of

knowledge — in the minds of people who will allow themselves to think

flexibly — to generate new, often surprising ideas

that others judge to be useful.

Plsek PE. Creativity, Innovation and Quality. ASQ Press, 1997.

Page 10: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Edward deBono’s Mental Valleys Model for Thinking

Streams of thinking Valleys

Page 11: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Existing Mental Models Block Innovative Thinking Our mental models become natural way of

seeing and explaining things Difficult to see (“like water to a fish”) Hard to imagine any other way Filters our perception of reality and keeps

us in our mental valleys Reinforces the status quo and locks us into

incremental thinking Innovation = Breaking the ‘rules’

Page 12: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

“Creative thinking involves breaking out of established patterns (valleys) in order to look at things in a different way.” de Bono

Purposeful channel Random jump

Page 13: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Creative addition…

+

Page 14: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

The drive-thru flu shot at Virginia Mason Medical Center in Seattle…

Page 15: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Creative addition…

+

Page 16: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Creative addition…

+

Page 17: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Creative addition…

Read more: http://channel.nationalgeographic.com/series/explorer/4828/luke#ixzz1JEZibfmB

Luke Massella

Page 18: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Directed Creativity via 4Ws Tool Usual primary care Alternatives???

Who Doctor is main care giver. Doctor manages disease, patient is expected to be compliant.

What (or

How)

Some pro-active and preventative care, but mostly care and information-giving in reaction to symptoms, delivered primarily face-to-face in office visits.

When On doctor’s schedule.

Where Primarily in doctor’s office.

Page 19: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Incremental Improvement to Radical Innovation Continuum

© 2003 Paul E. Plsek & Associates, Inc.

Doing what we do better

Doing what we do in a

more clever way

Doing something that has

never been done before, challenging

many paradigms

Doing something different by challenging

1-2 paradigms

Incremental Improvement

Radical Innovation

Page 20: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Defining Service Innovation

“A step change in the who, what, when and where (4Ws) of health service delivery —relative to the usual approach in a comparison context—that produces a step change in performance when implemented.”

Source: Maher LM and Plsek PE. Making a Bigger Difference: A Guide for NHS Front-Line Staff and Leaders on Assessing and Stimulating Service Innovation. NHS Institute for Innovation and Improvement, 2008.

Page 21: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Tool: Seven Dimensions of Performance (IOM+1)

Source: Maher LM and Plsek PE. Making a Bigger Difference: A Guide for NHS Front-Line Staff and Leaders on Assessing and Stimulating Service Innovation. NHS Institute for Innovation and Improvement, 2008.

Safety Timeliness Effectiveness Efficiency Equity Coordination *

(across the whole system)

Patient-centeredness

Page 22: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Tool: 4Ws Table

Current thinking…

Potentially innovative alternatives…

Who?

Does What? (or How?)

When?

Where?

Page 23: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Incremental Improvement to Radical Innovation Continuum

© 2003 Paul E. Plsek & Associates, Inc.

Doing what we do better

Doing what we do in a

more clever way

Doing something that has

never been done before, challenging

many paradigms

Doing something different by challenging

1-2 paradigms

Incremental Improvement

Radical Innovation

Page 24: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

AHRQ’s Health Care Innovations Exchange Web-based Repository of Service Innovations

National electronic learning hub for sharing health care service innovations, bringing innovators and adopters together

Searchable database featuring innovation successes and failures, expert commentaries, lessons learned, etc.,

Designed to help health care “Agents of Change” improve quality

innovations.ahrq.gov

Page 25: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

What is Disruptive Innovation? Coined by Clayton Christensen, Harvard

“Cheaper, simpler, more convenient technologies, products or services that ultimately let less expensive professionals provide sophisticated services in affordable settings, or that enable customers (patients) to service themselves.”

Requires fundamental shifts in thinking about the who, what, when, and where of service delivery value streams

Page 26: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Tertiary hospital

General hospital

Outpatient clinic

Office

Home

Patient AHP Nurse Family MD Specialist Disruption

Disruptive Innovation in Health Care

“…typically driven by scientific understanding that shifts the method used to diagnose and treat disorders from an unstructured, experimental, problem-solving process that demands a high level of professional expertise towards a rules-based regime that is less demanding.” Christensen CM and Anthony SD. Cheaper, faster, easier: disruptive innovation in the service sector. Strategy & Innovation. January-February 2004. (Harvard Business School reprint number S0401A)

Page 27: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Disruptive Innovation Examples The PC displacing mainframes ATMs and Internet banking On-line/distance/franchise education (e.g., Univ of Phoenix) Paralegals and websites (e.g., LegalZoom.com) providing ‘good

enough’ legal advice on some topics Retail primary care clinics staffed by RNs and NPs Angioplasty as an alternative to thoracic surgery for substantially

more patients Home blood glucose monitors and mail-in clinical tests for

people with diabetes Note changes in who, what, when, or where at

various points in overall system

Page 28: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Outline The call for transformation in healthcare Definitions of terms Understanding disruptive innovation and

transformation in healthcare Challenges

Are we training the next generation of clinicians to lead disruptive innovation and transformation of health care?

Page 29: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Some Challenges for Leaders of Transformational Innovation

Deep knowledge in specialized topics, with curiosity, inquisitiveness and openness to new ways of thinking

Generative relationship skills Systems thinking Multi-lingual (in sense of professions/disciplines)

Team leadership Optimism, hopefulness and inspiration

Page 30: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex
Page 31: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Four Venues of Leadership for Transformational Change

Political process

Bureaucratic process Adaptive action

process

Community process

Adapted from: Westley F. The devil in the dynamics: Adaptive management on the front lines. In Gunderson LH, Holling CS. Panarchy: Understanding Transformations in Human and Natural Systems. Island Press, 2002.

Page 32: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Outline The call for transformation in healthcare Definitions of terms Understanding disruptive innovation and

transformation in healthcare Challenges

Page 33: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Be of strong heart, innovation is nearly always opposed initially…

“That it will ever come into general use, not withstanding its value, is extremely doubtful because its beneficial application requires much time and gives a good bit of trouble; both to the patient and practitioner. Its hue and character are foreign and opposed to all our habits and associations.”

A physician writing to the editor of The Times of London, in 1834

The stethoscope!…

Page 34: Disruptive Innovation and Transformation in Healthcare · PDF fileDisruptive Innovation and Transformation in Healthcare Paul Plsek . Consultant on Innovation and Change in Complex

Disruptive Innovation and Transformation

in Healthcare

Paul Plsek Consultant on Innovation and Change in Complex Systems, Atlanta Mark Hutcheson Chair of Innovation, Virginia Mason Medical Center, Seattle