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Strategy Management

Sharing the Canadian Blood Services Experience

Sophie de Villers Vice-President, Strategy Management April 15, 2009

Content
• Overview of Canadian Blood Services • The CBS Change Agenda • Strategy Management System Components
– The Office of Strategy Management

• Breakthrough Performance • Sustaining Momentum and Continuous Improvement

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• Overview of Canadian Blood Services • The CBS Change Agenda • Strategy Management System Components • The Office of Strategy Management • Breakthrough Performance • Sustaining Momentum and Continuous Improvement

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in 1998. Canadian Red Cross operated Canada’s blood supply system • Early 1980s to mid 1990s: – tainted blood scandal – largest public health crisis in the history of Canada • Culminated in the Krever Commission of Inquiry on the Blood System in Canada 4 .Overview of Canadian Blood Services Who is Canadian Blood Services? • Founded over 10 years ago. to manage the blood supply system in Canada (outside of Quebec) • For over 50 years.

Today è872.405: number of registrants in OneMatch è732: number of healthcare facilities served è4.103: total number of active donors è234.Overview of Canadian Blood Services Facts at a Glance .447 collection clinics 12 manufacturing centres.179: number of apheresis platelet donations received è17. 3 blood-testing centres 11 bone marrow donor centres .700: number of employees èC$935 million annual budget 5 42 permanent collection sites 20.770: number of apheresis plasma donations received è36.000: number of volunteers è454.506: whole blood donations received è51.

• Overview of Canadian Blood Services • The CBS Change Agenda • Strategy Management System Components • The Office of Strategy Management • Breakthrough Performance • Sustaining Momentum and Continuous Improvement 6 .

Overview of Canadian Blood Services Canadian Blood Services was born in an environment of failure and scandal… 7 .

we have been engaged in transformation Phase 1 (1998 to 2003) Phase 2 (2003 to 2007) Phase 3 (2007 to ongoing) Crisis Manamgement • Restore trust • Restore safety • Rebuild core operations • Stabilize facilities • Manage crises • Tactical management Strategic Management • Become model for health care delivery in Canada • From blood manufacturers to “stewards” of the blood system • Embed strategy and quality excellence across organization Strategy Management Renewal • New mandate – no longer “only” a blood operator • Sufficient time to evaluate the value of the system and identify opportunities for improvement 8 .Since 1998.

modern. purpose-built Targeted. near benchmark Connected to the strategy 9 . empower Well defined.The 2005 CBS Change Agenda from… Blood products Tactical. ineffective. crisis Resisted and not understood Short term. develop. strong and visible thought leadership Standardized and automated Identify. operational. strategic investments Refurbished. single source funding Inherited. Responsive and limited visibility Manual Top down unclear benchmark Priorities and strategy unclear Mission EMT focus Implementation of Quality Systems Funding Infrastructure Medical R&D Core Processes Leadership Unit Cost People …to Expanded products and services Longer term strategic dialogue Championed and owned Multi-source funding.

affordable and accessible supply of quality blood.Corporate Strategy Map Fulfill our Mission to ensure we The Change Agenda Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. talent and knowledge + E2. Openness April 2007 10 . Ensure a healthy financial structure R2. Develop the quality system and culture + E2. Develop our skills. talent and knowledge Developing strategic assets E1. Respect. Integrity. Develop the quality system and culture Our Enabling Resources R1. Support the business through information technology + E3. Quality. at the right place. cost-effective. efficient and trusted blood system for Canadians” S5. Enable the optimal use of product S7. secure. Understand and assess the future Customer Service Excellence S2. Deliver efficiency and productivity gains Prepare for Tomorrow C3. Monitor known and emerging hazards Developing strategic assets enable us to execute Developing strategic assets E1. “CBS manages an effective. Deliver the right product. Optimize donor recruitment and retention S3. Accountability. Develop the quality system and culture + E2. Excelling. Support the business through information technology + E3. “CBS provides us with safe products and services” Operational Excellence C2. Support the business through information technology + E3. commitment and confidence of all Canadians by providing a safe. talent and knowledge E1. Protect against risks which drive the Strategic Actions S1. Develop our skills. Develop our skills. Plan for the future S4. Safety C1. Identify and introduce innovative ways of doing business S8. Build and sustain facilities that support our business requirements Our Values: Safety. blood products and their alternatives. “CBS proactively prepares for the future” S9. at the right time S6.

Communicating. Reporting • The Office of Strategy Management • Breakthrough Performance • Sustaining Momentum and Continuous Improvement 11 .• Overview of Canadian Blood Services • The CBS Change Agenda • Strategy Management System Components: – Planning. Managing.

Planning CBS has adopted a three part Balanced Scorecard system to 1) improve the management of strategy and 2) optimize corporate governance. CEO Balanced Scorecard 12 .

Develop our skills. Support the business through information enable technology us to execute + E3. cost-effective. Support the business through information technology + E3. Support the business through information technology which drive to ensure we + E3. commitment and confidence of all Canadians by providing a safe. blood products and their alternatives. Develop the quality system and culture + E2. Develop the quality system and culture + E2. Develop our skills. talent and knowledge Developing strategic assets E1. secure. talent and knowledge + E2. Support the business through information enable technology us to execute + E3. Develop the quality system and culture 13 . affordable and accessible supply of quality blood. cost-effective. secure. Support the business through information technology which drive + E3. talent and knowledge Developing strategic assets E1. cost-effective. blood products and their alternatives. Develop the quality system and culture the Strategic Actions Customer Service Excellence Our Enabling Resources Developing strategic assets E1. talent and knowledge Developing strategic assets E1. Safety Operational Excellence Plan for Tomorrow Our Enabling Resources Developing strategic assets E1. talent and knowledge Developing strategic assets E1. Develop the quality system and culture + E2. Support the business through information technology + E3. Develop our skills. Develop the quality system and culture + E2. make strategic alignment more explicit Planning Fulfill our Mission Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. Develop our skills. Develop our skills. Develop our skills. affordable and accessible supply of quality blood. Develop the quality system and culture + E2. cost-effective. talent and knowledge Developing strategic assets E1. commitment and confidence of all Canadians by providing a safe. talent and knowledge Developing strategic assets E1. secure. Develop our skills. Develop our skills. Develop the quality system and culture Our Enabling Resources Developing strategic assets E1. Develop our skills. Support the business through information technology + E3. talent and knowledge + E2. Support the business through information technology + E3. Develop the quality system and culture + E2. Develop the quality system and culture the Strategic Actions Customer Service Excellence Fulfill our Mission Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. Develop our skills. Safety Operational Excellence Plan for Tomorrow Our Enabling Resources Developing strategic assets E1. affordable and accessible supply of quality blood. Develop our skills. cascaded to divisions. Develop our skills. Support the business through information technology which drive to ensure we + E3. Support the business through information technology + E3. Support the business through information technology + E3. Develop the quality system and culture + E2. talent and knowledge + E2.Common themes. blood products and their alternatives. blood products and their alternatives. Develop the quality system and culture + E2. talent and knowledge Developing strategic assets E1. blood products and their alternatives. Support the business through information technology + E3. talent and knowledge + E2. Support the business through information enable technology us to execute + E3. Develop our skills. Develop our skills. Develop the quality system and culture + E2. Develop our skills. affordable and accessible supply of quality blood. commitment and confidence of all Canadians by providing a safe. Safety Operational Excellence Plan for Tomorrow to ensure we Customer Service Excellence Fulfill our Mission Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. affordable and accessible supply of quality blood. commitment and confidence of all Canadians by providing a safe. talent and knowledge Developing strategic assets E1. talent and knowledge Developing strategic assets E1. commitment and confidence of all Canadians by providing a safe. Develop the quality system and culture + E2. Support the business through information enable technology us to execute + E3. secure. cost-effective. Safety Operational Excellence Plan for Tomorrow which drive to ensure we enable us to execute the Strategic Actions Customer Service Excellence Fulfill our Mission Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. Safety Operational Excellence Plan for Tomorrow which drive to ensure we the Strategic Actions Customer Service Excellence Fulfill our Mission Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. talent and knowledge Developing strategic assets E1. secure. talent and knowledge + E2. Develop the quality system and culture the Strategic Actions Our Enabling Resources Developing strategic assets E1. Support the business through information technology + E3.

other business lines) Christian Choquet C1b. •0 critical observations •25% annual reduction in major observations •25% reduction in other observations annually C1b. Strategy Map Theme: Safety Objective / Performance Advocate Balanced Scorecard Measurement Target Action Plan Initiative C1. Safe products and services C1. how we plan to achieve it and the specific actions we are taking. • 0 extremes •25% reduction in recalls events (per quarter) Illustration Only 14 . “CBS provides us with safe products and services” C1a.Planning Details behind the Strategy Map • CBS has adopted a simple way to show what we are trying to achieve. Audit findings (manufacturing. Recall events (E/As and PDIs ) C1a.

Planning High-level process flow of the proposed initiative management process Strategy “Clear measurable goals” EMT Councils identify performance gaps and drive new investment priorities New Ideas Project execution and management through gating process Division “pre-screen” Council review and approval CBS Master Prioritized Initiative Portfolio Rejected Initiatives logged in change control database to maintain active inventory of all CBS initiatives Outside of gating process and divisionspecific Division Portfolio Manager 15 .

“CBS manages an effective. commitment and confidence of all Canadians by providing a safe. Optimize donor recruitment and retention S3. Develop our skills. blood products and their alternatives. Excelling. Deliver efficiency and productivity gains Prepare for Tomorrow C3. Quality. at the right place. Develop the quality system and culture Our Enabling Resources R1. at the right time S6. “CBS provides us with safe products and services” • Initiative Portfolio Management helps Canadian Blood Services choose the “right” initiatives … Customer Service Excellence S2. Develop our skills. talent and knowledge Developing strategic assets E1. Deliver the right product. talent and knowledge E1. Operational Excellence C2. “CBS proactively prepares for the future” S9. Ensure a healthy financial structure R2. efficient and trusted blood system for Canadians” S5. Plan for the future S4. Respect. Accountability. Develop the quality system and culture + E2. cost-effective. Support the business through information technology + E3. Monitor known and emerging hazards Developing strategic assets enable us to execute Developing strategic assets E1. Support the business through information technology + E3. secure.Initiative Portfolio Management & Project Management Fulfill our Mission to ensure we Strategy Management System Components Canadian Blood Services operates Canada's blood supply in a manner that gains the trust. affordable and accessible supply of quality blood. Protect against risks which drive the Strategic Actions S1. talent and knowledge + E2. Develop the quality system and culture + E2. Identify and introduce innovative ways of doing business S8. Openness • …and Project Management helps Canadian Blood Services delivers initiatives the “right” way 16 . Build and sustain facilities that support our business requirements Our Values: Safety. Understand and assess the future Safety C1. Enable the optimal use of product S7. Integrity. Develop our skills. Support the business through information technology + E3.

an anonymous Intranet-based forum for staff to ask executives questions.Communications • communicating strategy and performance results throughout the organization • manages a variety of communication vehicles – Intranet. Annual Report Communicating 17 . electronic news releases. newsletters.

Strategic Councils • Strategic Councils are theme-based – Safety. Operational Excellence. Prepare for Tomorrow – Meet monthly for ½ day – Organized and chaired by VPs/COO – Facilitated by OSM Managing • Membership – Subset of Executive Management Team and subject matter experts 18 .

Managing Mandate of Strategic Councils • Identify and lead discussion on strategic issues. and ensure follow-up • Oversee performance initiatives and budget associated with each theme • Ensure alignment with operational day-to-day activities and with activities under theme 19 . manage action items.

Reporting •From Performance Advocates to Strategic Councils •From Strategic Councils to EMT •CEO Report to Board •Board Report to Corporate Members 20 .

• Overview of Canadian Blood Services • The CBS Change Agenda • Strategy Management System Components • The Office of Strategy Management • Breakthrough Performance • Sustaining Momentum and Continuous Improvement 21 .

Strategy Management reporting directly to the CEO §manages processes and structure around development and execution of corporate strategy §leads through business integration and partnerships 22 .OSM Strategic Alignment •Scorecard Management •Organization Alignment •Strategy Reviews •Performance Reporting Portfolio Management •Initiative Management •Project Management •Project Integration Business Development •Strategic Planning – new business Strategy Communications •Strategy Communication •Internal Communication §15 staff – great development opportunity §VP.

• Overview of Canadian Blood Services • The CBS Change Agenda • Strategy Management System Components • The Office of Strategy Management • Breakthrough Performance • Sustaining Momentum and Continuous Improvement 23 .

” Donors: 92% Public: 75% IPSOS-Reid public opinion survey.Breakthrough Performance “I trust Canadian Blood Services to act in the best interests of the public. Winter 2008 Public trust in the scandal ridden blood system measured < 50% 24 .

Donor Satisfaction Breakthrough Performance “I am satisfied with the overall donation experience in my last visit.” 100% 75% 50% 25% 0% Pre-BSC ”Top Box” = 10 on a scale of 1 to 10 26% 43% 39% 60% 50% 53% Post-BSC Satisfied Top Box Now 25 .

Hospital Satisfaction Breakthrough Performance Overall hospital satisfaction with CBS services 100% 17% 75% 50% 77% 25% 0% Pre-BSC ”Top Box” = 10 on a scale of 1 to 10 29% 32% 69% 67% Post-BSC Satisfied Top Box Now 26 .

Breakthrough Performance Monthly hospital order fill rates Monthly RBC Order Fill Rates 100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 89% 88% 87% 86% 85% 84% 83% 82% 81% 80% 79% 78% Sustaining ~ 98% order fill rate 13 week labour disruption BSC program initiated – national inventory system as major strategy post 9/11 inventory surge 20 01 /A pr 20 01 /Ju l 20 01 /O ct 20 02 /Ja n 20 02 /A pr 20 02 /Ju l 20 02 /O ct 20 03 /Ja n 20 03 /A pr 20 03 /Ju l 20 03 /O ct 20 04 /Ja n 20 04 /A pr 20 04 /Ju l 20 04 /O ct 20 05 /Ja n 20 05 /A pr 20 05 /Ju l 20 05 /O ct 20 06 /Ja n 20 06 /A pr 20 06 /Ju l 20 06 /O ct 20 07 /Ja n Historic level of 80% order fill rate Pre-BSC Post-BSC 27 .

Collections have grown more than 30% since 1998 – Whole Blood (27%) – Plasmapheresis (40%) – Plateletpheresis (180%) 28 .Results amid change: the new model in action Breakthrough Performance • CBS year-over-year increases in core funding have declined below the general Health Care rate yet we have delivered increased value to Canadians • CBS has increased operational effectiveness.

• • • • Overview of Canadian Blood Services The CBS Change Agenda The Office of Strategy Management Strategy Management System Components • Breakthrough Performance • Sustaining Momentum and Continuous Improvement 29 .

Operational Strategic 30 .Sustaining Momentum Linking Strategy to Operations • Evolve the existing strategy management system to a more comprehensive strategy and performance management system Form an explicit link between the strategic management system and the operational management system without getting drawn into day-to-day performance.

Canadian Blood Services Business Lines Transfusable Products Plasma Protein Products Stem Cells Diagnostic Services Knowledge and Education Organs and Tissues 31 Current New .

Risk Matrix – version 2007-09-28 (CRP FY2007/2008) IMPACT Definition Insignificant Can be absorbed within day-to-day operations Minor Hardly noticeable loss to CBS operations Moderate Noticeable loss to CBS operations in the short term Major Large loss to blood system over the medium term Catastrophic Beyond CBS' ability to manage.Corporate Risk Profile – Risks to CBS strategy LIKELIHOOD Almost certain (will occur once per year or more frequently) Likely (will occur once every three years) 33% chance in next year Possible (will occur once every ten years) 10% chance in next year Unlikely (will occur once every 30 years) 3% chance in next year Rare (will occur once every 100 years) 1% chance in next year Sustaining Momentum Risk Identification and Analysis (risks threatening the achievement of strategic objectives) Canadian Blood Services. threatens the viability of blood system Strategy Refresh (risk as an input) Risk Monitoring and Reporting (within Strategic Performance Reporting framework) 32 .

Sustaining Momentum Performance Management Alignment Canadian Blood Services’ Canadian Blood Services’ Organizational Strategy and Operating Plans Organizational Strategy and Operating Plans VISION STRATEGIC OBJECTIVES VISION //STRATEGIC OBJECTIVES Work Unit or Team GOALS Work Unit or Team GOALS Individual Individual OBJECTIVES OBJECTIVES STANDARDS STANDARDS Performance management at CBS will help align what we are expected to do with the direction the organization is taking 33 .

Closing Thoughts • CBS has come a long way in rebuilding the blood system in Canada and in gaining the trust of Canadians • BSC helps to fundamentally change the way the organization is managed • Sustained efforts required to engrain strategy execution as a core competency of every leader • CBS continues to move forward as our mandate is expanded • CBS continues to strive to be a model for healthcare delivery at a national scale 34 .

Feb 10. 2009: • Canadian Blood Services and TransAlta Tie as Overall Winner of 2009 National Awards in Governance 35 .

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