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Source: McKinsey analysis Performance is what an organisation needs to accomplish in both the short and long terms. Health is not synonymous with long-term performance; instead, it comprises the qualities, attributes, and actions that will make the enterprise more likely to perform well in the future. * * Each hospital sits within a different context that shapes the opportunities and challenges it presents. There are four key aspects of the context (all inter-linked): The potential for improvement Every transformation is launched because of a belief that there is a prize to be gained – whether on clinical outcomes, patient experience or productivity Leaders need to look outside their organization to size up the potential (benchmarking), and use a broad range of analytical approaches to triangulate the estimate of potential improvement The strategy Sometimes a reappraisal of the strategy triggers a transformation; other times some transformative initiatives can cause a rethink of the strategy Whichever way around, there must be a tight link between an organization’s overall corporate strategy and its transformation The readiness for change This is a function of both ‘skill’ and ‘will’ It fluctuates over time (e.g. recent failed change efforts cause cynicism which decreases change readiness) and must therefore be assessed/managed throughout the journey The organization’s heritage All organizations carry their past into their futures. Heritage affects everything from IT systems to cultural norms A ‘clean slate’ view of the future is never fully convincing – the transformation must reflect what staff recognize in their organization today It is important to manage the context actively throughout the transformation – not just to analyze it at the beginning and then accept it as organizational fate – it is a variable, not a constant (e.g. an organization’s change readiness can be increased; new potential opportunities may arise throughout the transformation; change
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