“Like any business, a hospital must be true to its core values in order to succeed. ‘Trickle-down values’ start at the top with the best leadership, so that all the stakeholders understand and carry out the institution’s mission. That is the gift that David F einberg has brought to U CLA. I am in awe of his management skills.”
—Lynda Resnick, owner of Pom Wonderful, Fiji Water, Teleflora, and Wonderful Pistachios
“With clear purpose, unwavering principles, and steadfast leadership, the people at UCLA have established a new bar, a compelling promise, for what healthcare can and should be.”
—David M. Lawrence, M.D., former CEO, Kaiser Permanente
“An absorbing and educational account of a large institution’s astonishing transformation. The strong, courageous, and focused leadership of David Feinberg and his outstanding team is evident on every page. A tremendous lesson for all large enterprises.”
—William E. Simon, Jr., cochairman, William E. Simon & Sons
“Most leadership authors describe how to apply common-sense principles. Michelli is a notable exception. He artfully describes the compelling, uncommon leadership practices that transformed UCLA Health System. The resulting lessons are plentiful and powerful for today’s business leader.”
—Lee J. Colan, Ph.D., author of Sticking to It: The Art of Adherence
About the Book:
Joseph Michelli, author of The Starbucks Experience and The New Gold Standard, is among the world’s top authorities on the principles of creating an organizational culture dedicated to service excellence. In these bestselling books, he examines how leading service companies dominate their respective industries with innovative customerexperience strategies.
Now, Michelli turns his attention to one of the most complex, controversial, and critical industries—healthcare.
In Prescription for Excellence, Michelli provides an inside look at an organization that has become the envy of its industry—and explains how you can dominate your own industry by using the same approach.
UCLA Health System is revered worldwide for its top-tier patient/customer care. Great physicians, nurses, researchers, and staff are only part of the equation; UCLA’s overall success is a result of organization-wide collaboration that is driven by leaders with a shared vision of unyielding excellence. Michelli breaks down UCLA’s approach into five simple principles:
From administrative offices to operating rooms to research centers, continued adherence to these five principles has guided UCLA to financial strength, social significance, and sustainability.
The best part is that these principles translate to any industry, so you, too, can achieve similar goals. Michelli gives you the tools to adapt UCLA’s ideas, systems, and leadership principles into your own best practices. Whether it is a healthcare organization, a financial institution, or a neighborhood hair salon, good business begins and ends with customer connection. When all workers in an organization focus on providing quality care for those they serve, success inevitably follows.
Business is always personal; UCLA’s leadership ensures that this simple truth drives every UCLA employee, every day. Apply the lessons Michelli spells out in Prescription for Excellence to create a system that ensures that your people take business personally, day in and day out.
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Joseph A. Michelli, Ph.D., is an internationally sought-after speaker and business consultant whose clients include Bridgestone Firestone, Nokia, The Hartford Insurance Group, and UCLA Health System. The author of the bestselling The Starbucks Experience, he has appeared on The Glenn Beck Show and CNBC’s On the Money.
Foreword Eugene Washington, M.D., M.Sc., vice chancellor, UCLA Health Sciences, and dean, David Geffen School of Medicine at UCLA | |
Acknowledgments | |
CHAPTER 1 The UCLA Health System Experience: What Everyone Can Learn from Greatness in Healthcare | |
PRINCIPLE 1 COMMIT TO CARE | |
CHAPTER 2 Care Takes Vision, Clarity, and Consistency | |
CHAPTER 3 Never Enough Care | |
PRINCIPLE 2 LEAVE NO ROOM FOR ERROR | |
CHAPTER 4 Setting the Foundation: Safety Is a Matter of Culture | |
CHAPTER 5 Safety—Science, Selection, and Challenge | |
PRINCIPLE 3 MAKE THE BEST BETTER | |
CHAPTER 6 Delivering Exceptional Outcomes Here and Now | |
CHAPTER 7 Quality for Less and for All | |
PRINCIPLE 4 CREATE THE FUTURE | |
CHAPTER 8 High-Value Innovation—Leveraging the Risk of Excellence | |
CHAPTER 9 Transformative Evolution | |
PRINCIPLE 5 SERVICE SERVES US | |
CHAPTER 10 Service Experience—More than Just Pretty Words | |
CHAPTER 11 Sustainable Success through Service without Bounds | |
CONCLUSION Your Follow-up Care Plan | |
Appendix A | |
Appendix B | |
Appendix C | |
Notes | |
Sources | |
Index |
The UCLA Health System Experience: What Everyone Can Learn from Greatness inHealthcare
Greatness is so often a courteous synonym for great success.
—Philip Guedalla
Imagine having to run a successful business that requires the innovation ofApple, the commitment to safety of NASA, and the customer service of Ritz-Carlton.Furthermore, imagine that your mandate demands that you be a world-classeducator, your work product holds life and death in the balance, and youare responsible for discoveries that shape the future of medicine. But wait;there's more! You have to achieve your complex mission in a highly political,cost-competitive industry. From imagination to reality, you are about to divedeeply into the challenges and leadership lessons of UCLA Health System!
While a book about a premier medical research and training center is obviouslyrelevant for anyone who is in healthcare, its appropriateness for otherindustries might not be readily apparent. In fact, you may be asking: what doesUCLA Health System, a leader in a complicated and often maligned sector of oureconomy, have to offer me if my business is banking, retail, hospitality, orsomething else? The short, albeit incomplete, answer is how to
• Catapult your business to preeminence at an unusually rapid pace.
• Transform the satisfaction and engagement of your customers through aservice-centric approach.
• Achieve meteoric profitability during economic downturns—despiteaggressive competition.
• Achieve decades of recognition as a quality and safety leader.
• Create revolutionary improvement in your employee engagement and empowerment.
• Redesign, elevate, and humanize your customer experience.
Despite having a background working as an organizational development specialist,when UCLA approached me to write this book I was initially skeptical aboutwhether UCLA Health System would be the "right" source for business lessons. (Ofcourse, my cynicism may have been amplified by my not having been accepted byUCLA's graduate school years ago, and instead having attended its crosstownrival USC.)
For me, an author of books about businesses that provide great customer andemployee experiences, such as the Pike Place Fish Market in Seattle, StarbucksCoffee and Tea Company, and the Ritz-Carlton Hotel Company, UCLA Health Systemseemed an unlikely subject for a book. Suffice it to say that my experienceswith the UCLA leadership convinced me that these lessons needed to be told. Infact, the profits from this book will be donated to Operation Mend (more on thisprogram in Chapter 11) in support of UCLA Health System's overallmission.
Are you ready to learn from one of America's top healthcare systems, owned by 30million citizens of California, with 4 hospitals; more than 75 clinics; inexcess of 80,000 inpatient hospital contacts; 1,000,000 clinic visits annually;1,500 physicians; 1,500 residents and fellows; 3,500 nurses, therapists,technologists, and support personnel; 1,000 volunteers; 120 physicians cited inthe "Best Doctors in America" poll; and a world-renowned medical school that isamong the top 10 in the nation in medical-research funding, the David GeffenSchool of Medicine at UCLA? If so, your lessons are about to begin. But let'sfirst examine UCLA Health System's humble start and rapid ascent to the top tierof medical excellence.
GOING WEST IN THE ATOMIC AGE
Traditionally, centers of medical excellence were found in the northeastern andGreat Lakes regions of the United States, with highly revered institutions suchas Johns Hopkins in Baltimore, Maryland, and the Mayo Clinic in Rochester,Minnesota. As World War II came to a close, however, a group of physicians beganpressuring the University of California to create a premier medical center insouthern California. In response to these influential physicians, the Universityof California Board of Regents voted in 1945 to appropriate $7 million to fund amedical school at UCLA.
In 1947, Stafford L. Warren, a professor from the University of RochesterMedical School in New York, was appointed as the UCLA medical school's firstdean. Picking a handful of exceptional faculty leaders from the University ofRochester and Johns Hopkins, UCLA School of Medicine began without a hospital oradvanced research facilities. Scientists instead worked in temporary Quonsethuts in distant locations around the campus. As construction of the new medicalcenter began in 1951, the first UCLA School of Medicine class was beingadmitted. Fifteen faculty members provided courses to 28 students—26 menand 2 women—who attended classes in a reception lounge of an old religiousconference building.
In 1950, just prior to the beginning of construction on the medical centerbuilding, a Los Angeles Times reporter called it "one of the greatestmedical meccas in the world." Newspaper reports indicated that the medicalcenter would "combine a complete undergraduate medical school, a fully equippedand staffed hospital and the most advanced research facilities possible." In thearticle, Dean Stafford Warren remarked that the medical campus would be "thefirst structure of its size and nature to be specifically designed for theAtomic Age with operating rooms and radiology department built where they serveboth the flow of function and, incidentally, protection against disaster."
That protection from disaster served the UCLA medical complex well from itsopening in 1955 until 1994, when the main medical building experienced interiorstructural damage as a result of the Northridge earthquake. Given concerns forpatient safety in the context of earthquake risks, the California legislatureamended existing legislation and required all hospitals to house their acute-andintensive-care units in earthquake-safe buildings by 2008. As a result of thatlegislation, the "medical mecca" of the 1950s gave way to the Ronald Reagan UCLAMedical Center (RRUCLA).
SCOPE OF THE MODERN ENTERPRISE
The Ronald Reagan UCLA Medical Center is named after the former U.S. presidentand California governor. Including state-of-the-art equipment purchases, theconstruction costs exceeded $1 billion. Funding sources included more than $300million in private donations, including $150 million in the name of PresidentReagan; $432 million in federal earthquake relief funds; and $44 million inCalifornia state contributions. The 10-story building, with more than a millionsquare feet, has 520 private patient rooms and employs 1,500 full-timephysicians and more than 2,500 support staff. The building, which opened topatients in June 2008, is constructed to withstand an 8.0 magnitude earthquakeand was one of the first buildings in California created to meet the state'selevated seismic standards.
The Mattel Children's Hospital UCLA occupies a 90-bed unit in the Ronald ReaganUCLA Medical Center. Similarly, the medical center houses the Stewart and LyndaResnick Neuropsychiatric Hospital at UCLA, a 74-bed independently accredited andlicensed hospital.
In addition to the hospitals housed in the Ronald Reagan UCLA Medical Center onUCLA's Westwood, California, campus, UCLA Health System also owns and operatesthe 271-bed acute-care Santa Monica–UCLA Medical Center and OrthopaedicHospital in the neighboring community of Santa Monica. The Santa Monica hospitalhas had a presence in its community since 1926 and was acquired in 1995. Muchlike the Ronald Reagan UCLA campus, the Santa Monica–UCLA Medical Centerhas been modernized to the highest technology standards and serves as a parallelextension of the academic medical center in Westwood.
Adjacent to the Ronald Reagan UCLA Medical Center are three professional officebuildings that make up the UCLA Medical Plaza. These buildings house more than75 outpatient clinics providing care across a wide range of medical specialties.In addition to these clinics, UCLA Health System oversees the UCLA MedicalGroup, which is composed primarily of UCLA faculty physicians from the DavidGeffen School of Medicine at UCLA. The UCLA Medical Group provides traditionalcommunity-based outpatient health services to private-pay patients, as well asthose covered by all forms of insurance, via regional clinics found in the LosAngeles area.
The hospitals and clinics exist not only for the clinical care of patients, butalso to support the educational and research objectives of the David GeffenSchool of Medicine at UCLA. While providing world-class education for medicalstudents, residents, and fellows, the medical school also participates inresearch designed to create breakthroughs in diagnosis, treatment, and medical-care delivery. The integration of medical school training, research, andclinical care is reflected in the institutes and centers that are a part of UCLAHealth System. A list of these programs can be found in Appendix A.
IT'S COMPLICATED, IT'S BROAD IN SCOPE, BUT HOW IS IT EXCELLENT?
While you now have a sense of the wide scope of UCLA Health System, scope shouldnot be confused with significance, and we all know that bigger often does notmean better. So, what has the leadership at UCLA done to warrant your time andattention? From UCLA Health System's inception, its leaders have achievedsuccess in four areas that are critical to every business enterprise:
1. Growing while maintaining quality
2. Inspiring innovation while generating cohesion
3. Balancing technological advances with humanity
4. Achieving recognition and respect for extraordinary accomplishments
A GLIMPSE AT BREAKTHROUGHS
The chapters that follow will primarily address issues of growth, quality,innovation, and service excellence; very little time will be spent talking aboutthe recognition and reputation that UCLA has achieved. Clearly a book could bewritten on UCLA's medical breakthroughs alone, but for our purposes, a fewhighlights should suffice.
In the 1950s, UCLA surgeons performed the first open-heart surgeries on the WestCoast of the United States, and researchers developed the initial techniques forfetal monitoring. In the 1960s, surgeons at UCLA brought the first mother-to-daughter kidney transplants to the western United States. In the 1970s, UCLAphysicians and scientists developed a durable artificial hip, and surgeonsperformed the first shoulder replacement. During the 1980s, UCLA doctorsinnovated and delivered the first PET scan services and identified the nation'sfirst case of AIDS. In the decade of the 1990s, Dr. Hillel Laks pioneered thefirst Alternative Heart Transplant Program in the United States and was thefirst U.S. cardiac surgeon to perform bypass surgery on a donor heart prior totransplantation. In the same time period, UCLA surgeons and transplantspecialists were the first in the west to perform a remarkably successfulcombined small bowel/liver transplant.
Since 2000, doctors and researchers at UCLA Health System have continued togenerate innumerable research breakthroughs, innovative accomplishments, andmedical firsts. For instance, cardiothoracic surgeons developed a technique toharvest an artery from a patient's wrist for heart bypass surgery, and Dr.Ronald Busuttil performed the nation's first combined unrelated living liver and"domino" transplant in response to the national shortage of livers fortransplant. This process essentially saves two patients through one liverdonation. The donated liver comes from a nonrelated living donor and istransplanted into a patient with an otherwise genetically deficient liver. Thegenetically deficient liver is then transplanted into the second patient, whosuffers from liver cancer. The genetically deficient liver, while less thanperfect, dramatically extends the life expectancy of the patient with livercancer.
Similarly, a team of more than 50 surgeons, nurses, and technicians led by Dr.Jorge Lazareff and Dr. Henry Kawamoto successfully separated two-year-oldcraniopagus twin girls from Guatemala in a 22-hour surgery. Fused at the tops oftheir heads, craniopagus twins are among the rarest of conjoined twins,accounting for just 2 percent of cases worldwide.
UCLA Health System's hospitals also became the world's first to introduce remotepresence robots in its neurosurgery intensive-care unit. This allows doctors to"virtually" consult with patients, family members, and healthcare staff at amoment's notice, even if they are miles away from the hospital.
RECOGNITION ABOUNDS
From the standpoint of peer and organizational recognition, a select few of UCLAHealth System's noteworthy achievements include:
• U.S. News & World Report's America's Best Hospital Honor Rollconsistently ranks Ronald Reagan UCLA Medical Center as one of the top hospitalsin the nation and, for more than 21 years, as the best hospital in the westernUnited States. UCLA's nationally recognized programs based in Westwood and inSanta Monica have been ranked among the top 20 in 15 of the 16 medicalspecialties. At least 12 of those specialties have achieved ranks in the top 10.
• Integrated Healthcare Association consistently ranks UCLA Medical Group as oneof California's top-performing physicians' organizations.
• UCLA Medical Group was one of only 6 organizations in California and one ofonly 28 in the United States to meet the strict standards required to receive aCertificate in Credentialing and Recredentialing through the National Committeefor Quality Assurance (NCQA) Physician Organization Certification Program.
• UCLA Stroke Center received the American Heart Association's (AHA) Get withthe Guidelines™ Gold Performance Achievement Award for commitment andsuccess in implementing a higher standard of stroke care by ensuring that strokepatients receive treatment according to nationally accepted standards andrecommendations. In fact, UCLA cardiologist Dr. Gregg Fonarow was recognized asgenerating one of the top research advances for establishing the CardiovascularHospitalization Atherosclerosis Management Program guidelines promoted by theAHA.
• The National Cancer Institute has designated the Lung Cancer Program at UCLAHealth System's Jonsson Comprehensive Cancer Center a Specialized Program ofResearch Excellence (SPORE), making it one of only a handful of programsnationwide to receive national recognition and substantial research funding toimprove the prevention, detection, and treatment of lung cancer.
• The National Cancer Institute designated UCLA Health System's Prostate CancerProgram as a Specialized Program of Research Excellence, distinguishing theprogram as one of only a few nationwide that was tapped to improve theprevention, detection, and treatment of prostate cancer.
• National Institutes of Health (NIH) has designated UCLA Health System'sprostate cancer and kidney cancer programs as Centers of Excellence according toNIH guidelines.
• UCLA's Jonsson Comprehensive Cancer Center was officially designated by theNational Cancer Institute as one of only 40 comprehensive cancer centers in theUnited States.
• UCLA's Heart Transplant Program was recognized as the nation's best by theU.S. Department of Health and Human Services.
• Ronald Reagan UCLA Medical Center was honored by OneLegacy, the transplantdonor network serving southern California, for achieving a high organ conversionrate.
• The American Alliance of Healthcare Providers (AAHP) recognized Ronald ReaganUCLA Medical Center as one of America's Most Customer-Friendly Hospitals in theorganization's Hospital of Choice Award.
• Ronald Reagan UCLA Medical Center and Santa Monica–UCLA Medical Centerand Orthopaedic Hospital rank among the top three hospitals in Los AngelesCounty for the highest percentages of mothers discharged from the hospital whilefeeding their babies exclusively with breast milk.
• UCLA Health System has earned the American Society for Metabolic & BariatricSurgery (ASMBS) Center of Excellence designation by demonstrating a track recordof favorable outcomes in bariatric surgery.
• Ronald Reagan UCLA Medical Center earned Magnet Status for Nursing Excellencefrom the American Nurses Credentialing Center.
• The Leapfrog Group named Ronald Reagan UCLA Medical Center as a Leapfrog TopHospital based on results from an annual Leapfrog Hospital Quality and SafetySurvey.
• UCLA Medical Group is a qualified data registry under the Physician QualityReporting Initiative (PQRI), a Medicare pay-for-reporting program. UCLA MedicalGroup was one of only 10 organizations in the nation affiliated with teaching oracademic medical centers to earn this designation from the Centers for Medicareand Medicaid Services (CMS).
• U.S. News & World Report ranks Mattel Children's Hospital UCLA amongthe top pediatric hospitals in the United States.
• Resnick Neuropsychiatric Hospital UCLA consistently ranks number one in thewest and number six in the country in U.S. News & World Report.
• Ophthalmology services at Jules Stein Eye Institute rank number five in thecountry in U.S. News & World Report.
WHERE IT MATTERS MOST
While breakthroughs and critical acclaim are vital to business success, for theleaders at UCLA Health System, the ultimate validation comes from the countlessstories of appreciation offered by the medical professionals that the systemtrains, the staff members it employs, and the patients it serves. In essence,the greatest measure of success for the UCLA leadership is the degree to whichcompassionate care matches or exceeds the quality of the clinical outcomes.
(Continues...)
Excerpted from Prescription for Excellence by JOSEPH A. MICHELLI. Copyright © 2011 by The Regents of the University of California and UCLA Health System. Excerpted by permission of The McGraw-Hill Companies, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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