No industry relies more on information than banking does, vet Continental, one of America's largest banks, outsources its information technology. Why? Because that's the best way to service the customers that ...
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No industry relies more on information than banking does, vet Continental, one of America's largest banks, outsources its information technology. Why? Because that's the best way to service the customers that form the core of the bank's business, says vice chairman Dick Huber. In the late 1970s and early 1980s, Continental participated heavily with Penn Square Bank in energy investments. When falling energy prices burst Penn Square's bubble in 1982, Continental was stuck with more than $1 billion in bad loans. Eight years later when Dick Huber came on board, Continental was working hard to restore its once solid reputation. Executives had made many tough decisions already, altering the bank's focus from retail to business banking and laying off thousands of employees. Yet management still needed to cut costs and improve services to stay afloat. Regulators, investors, and analysts were watching every step. Continental executives, eager to focus on the bank's core mission of serving business customers, decided to outsource one after another in-house service - from cafeteria services to information technology. While conventional wisdom holds that banks must retain complete internal control of IT, Continental bucked this argument when it entered into a ten-year, multimillion-dollar contract with Integrated Systems Solutions Corporation. Continental is already reaping benefits from outsourcing IT. Most important, Continental staffers today focus on their true core competencies: intimate knowledge of customers' needs and relationships with customers.
Rural communities have not kept pace with the recent dramatic changes in health care financing and organization. However, the Medicare provisions in the Balanced Budget Act of 1997 will require rural providers to part...
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Rural communities have not kept pace with the recent dramatic changes in health care financing and organization. However, the Medicare provisions in the Balanced Budget Act of 1997 will require rural providers to participate in the new systems. Case studies revealed the degree of readiness for change in six rural communities and charted their progress along a continuum, as reflected in three sets of activities: the development of networking;the creation of new strategies for managing patient care;and the adoption of new methods for contracting with health insurers. Some communities had constructed highly integrated systems, whereas others were just beginning to change their billing practices;a few were signing contracts fbr capitated fare, in contrast to those that were resisting discounts in current fee structures. These six rural areas still have considerable ground to cover before their health fare organization and financing reach the levels achieved by urban communities.
Focuses on problems related to organizational change. Organization structure; Work processes; Management and information processes; Benefits from reorganization and right sizing. INSET: THE VISION THING.
Focuses on problems related to organizational change. Organization structure; Work processes; Management and information processes; Benefits from reorganization and right sizing. INSET: THE VISION THING.
BACKGROUND: Understanding change is crucial to implementing quality improvement (QI) initiatives. Widespread change will be required to correct what many consider to be outmoded and deficient systems of care. This art...
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BACKGROUND: Understanding change is crucial to implementing quality improvement (QI) initiatives. Widespread change will be required to correct what many consider to be outmoded and deficient systems of care. This article summarizes the current literature--within both health care and the fields of business and management--regarding how change occurs at the individual and organizational levels. Part 1 focuses on changing clinician behavior, which is instrumental to any effort directed in the health care setting. Part 2 examines the culture of change. Part 3 addresses issues of leadership, along with the necessary steps to guide change in an organization. Part 4 summarizes key elements of change. Finally, Part 5 provides three case examples of QI initiatives reported in the recent literature to illustrate how the application of the knowledge of change management can assist in the successful implementation of QI programs. KEY ELEMENTS OF CHANGE: The knowledge base regarding successful change in health care organizations can be summarized in eight crucial strategies or principles: (1) develop a vision for change, (2) focus on the change process, (3) analyze which individuals in the organization must respond to the proposed change and what barriers exist, (4) build partnerships between physicians and the administration, (5) create a culture of continuous commitment to change, (6) ensure that change begins with leadership, (7) ensure that change is well communicated, and (8) build in accountability for change. CONCLUSION: A knowledge of change management can help leaders of QI programs in health care organizations successfully apply these concepts to bring about much-needed transformations in health care.
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