Business Process
Redesign Initiative – Frequently Asked Questions
Q: What is CHE’s Business Process Redesign (BPR)
Initiative?
A: The Business Process Redesign Initiative is a
System-wide approach to improving operations in Supply Chain, Financial
Management, and Human Resource/Payroll functions at Catholic Health East. It
will accomplish this goal through the utilization of best practices and
System-wide standardization of business processes, data and supporting
technology, e.g., business process re-design.
Q: Is it the same thing as the Lawson project?
A: CHE’s Business Process Redesign Mission Synergy
Initiative was previously known as the Lawson Project. The name change is
deemed important, as Lawson is not a strategy in and of itself. Rather it is a
tool, a software system, developed to support strategic initiatives in supply
chain, finance and human resources.
Q: What exactly is
Lawson?
A: Lawson is information system software that integrates all financial, human
resources, payroll, and supply chain data and functions across an organization
onto a single computer system that can serve all those different areas’
particular needs. CHE plans to implement this system at all acute care RHCs over
the next five years. In healthcare, Lawson serves over 400 customers
representing 4,500 facilities and is used by 7 of the 10 largest healthcare
systems in the country. The Lawson system has been around for nearly 30 years
and is used by many large corporations such as McDonalds and Target.
Q: So this is a computer
system implementation?
A: Not exactly. We will be installing Lawson, but this initiative is much
different than a traditional information system implementation. Instead of
configuring the system to accommodate the “way things are done” now, the primary
focus will be to improve the way work is done throughout CHE. We will also be
standardizing certain kinds of data. For example, we will be defining a
standard Chart of Accounts and developing standard codes for certain human
resources data so that we can more easily share information in meaningful ways.
This will enable CHE to attain improved operational and financial performance
throughout all RHCs.
Q: Why is CHE doing this
now? What are we trying to accomplish?
A: The Sponsors of our various ministries have entrusted us with the ongoing
viability and vitality of the CHE mission, that is, to be a transforming,
healing presence within the communities we serve. To meet this mission, CHE has
significant capital needs – estimated at $1.6 billion over the next 5 years. RHC
and JOA CEOs and Boards agreed to launch a series of Mission Synergy Initiatives
designed to improve operational performance across the system through
synergistic efforts. The BPR/Lawson project is one of these mission synergy
initiatives.
Q:
What will BPR accomplish?
A: The key objective of this initiative is to use
Lawson applications as the vehicle to attain value in the following areas:
Q: Is this about reducing headcount? Will
people lose their jobs?
A: FTE reductions are
not the primary goal of this effort. However, it is likely that jobs will
change as CHE’s standard operating model and best practices are implemented, and
ultimately, there may be some reductions in overall headcount.
Q: How will I know what this means to me and
my job?
A: Prior to your RHC’s
implementation, there will be focused communication from your executives and the
implementation team for your RHC. There will also be training for everyone
involved with the implementation of redesigned business processes and every user
who will use Lawson to perform their jobs. You may find that the way you do
specific tasks will change and you will be provided with training and reference
material to assist you with learning the new processes.
Q: Where does the project stand right now?
What are the next steps?
A: The BPR project is
divided into three major phases – Phase I is currently underway and will be
complete by April 2004. In Phase I, design teams consisting of HR, finance, and
Supply Chain representatives from across CHE are collaborating to design CHE’s
standard operating model. The new operating model will take into account the
needs and requirements of each RHC, commonalities and differences across RHCs,
and best practices. At the same time, the Training and Assessment plan is being
formulated and a Communications strategy has been developed to provide
information to all employees at various times throughout the process. During
Phase II, which is set to begin in April 2004, the new operating model and the
Lawson technology will be implemented at St. Peters, and knowledge will be
transferred to the CHE implementation team for subsequent implementations.
During Phase III, the new operating model and technology will be installed at
the remaining acute care RHCs over a three-tear period beginning in 2005.
Q: We have already implemented Lawson. Why
not just adopt our model for the whole system?
A: Four RHCs (Our Lady
of Lourdes, Holy Cross Hospital, Sisters of Providence Health System, and Mercy,
Miami) are currently live with certain components of Lawson Systems. Baycare
has also had significant experience in implementing the Lawson Human Resource
and Payroll Suite. However, none of these organizations designed their model
with the needs of ALL the RHCs in mind. The standard operating model being
developed right now is taking into account lessons learned at each of the
current sites, as well as the RHCs that do not yet have Lawson. Because we are
focusing this effort on all RHCs, we are working together to redesign our
business processes for greater efficiencies and want to be sure each RHC will
benefit from the efficiencies gained. Also, some of the RHCs implemented prior
releases of Lawson and will benefit from the upgrades in the newer release(s).
Q: How are the needs of my organization going to
be considered in the design of the enterprise operating model?
A: The design team consists of, and will be working closely with,
representatives from the RHCs throughout the duration of the Design Phase. The
design team members have been chosen from across the various RHCs. The design
teams have also surveyed each RHC to understand the way things currently work,
and are in communication with staff at the RHCs to discuss key factors to be
considered in design of the operating model. In addition, the Design Team is
working closely with the Human Resources, Finance, and Supply Chain Management
Councils, also comprised of representatives from each RHC, to review and refine
CHE’s standard operating model.
Q: What is the
implementation schedule? When will my organization be affected?
A: The model implementation at St. Peters in Albany is scheduled for go-live in
December 2004. The plan is for 4 additional acute care RHCs to implement in
2005, 5 additional in 2006, and the remaining 4 to implement in 2007. An
organizational readiness assessment is currently being completed to determine
the sequencing of implementations across the remaining RHCs after St. Peters.
The assessment will consider four primary areas:
-
People and Organization
– which will consider factors such as leadership commitment, resource
availability, the presence or absence of competing priorities within the RHC,
and other skills, experiences and resources available to assist in successful
BPR implementation.
-
Technology Need and Readiness – which will consider
whether the RHC has any major system replacement requirements on the horizon, as
well as whether the required platforms, technical infrastructure, and staff IT
skills sets are in place.
-
Business Value – which will estimate the potential
for technology-enabled performance improvement that exists within the RHC.
-
Other Considerations – which will include, for
example, the size, composition, and capacity of the implementation team.
Objective and subjective information in each of
these areas is being collected through a variety of sources, including
interviews with each RHC CEO, surveys of each RHC, and benchmarking. The target
date for completion of the sequencing recommendation is April 2004, at which
time a recommendation will be made to the Lawson Steering Committee and the RHC
CEOs.
Q: What
happens in the meantime? Are there things we can or should be doing to prepare?
A: There are a number of things you can do while waiting for implementation at
your RHC. First, you can participate in the design of CHE’s standard operating
model by providing suggestions and feedback to and design team members from your
organization and your Council members. Because the Councils meet regularly with
the design teams during Phase I of the project, they will be able to pass along
your ideas for consideration in the design of the new model. Second, you should
stay informed of the BPR project’s status by reading and/or viewing the upcoming
communications regarding this initiative, including regular updates in your RHC
publications. And third, you can help prepare for implementation at your RHC by
participating in process change. Because this is a Business Process Redesign
project rather than just a system implementation, many of the process changes
will not be Lawson dependent. Therefore, once CHE’s standard operating model
has been finalized and approved, your RHC will likely begin to make process
changes to move towards the new operating model.
Q: What is the
commitment to training?
A: An extensive training program will be put in place to support implementation
of the new operating model and the Lawson system. The detailed training plan is
currently being developed, and is expected to include both Instructor-Led
Training (ILT) and Computer-Based Training (CBT). Every individual who will need
to use Lawson to perform his or her job will receive training. The training
will be consistent with end users’ jobs and roles and will cover both Lawson
functionality and CHE’s new standard operating model.
Please call 610.355.2000 or e-mail info@che.org for more information.
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