The Business of Social Responsibility.

Business and social responsibility are frequently regarded as opposite poles in a decision spectrum.  This is unfortunate and may result from the way such questions are posed.  Sometimes, knowing the right questions or how to look at the decision can frame the decision in a way that makes sense to everyone. 

Several years ago, a Baldrige award winner recalled the day when his lawyer advised him that the state had issued a warrant for his arrest because of the environmental pollution from his factory.  His first thought was to close the factory.  Then, he thought of the employees who would be out of work if he closed, so he decided to stay open.  In looking at the sources of pollution, he realized that the material going into the local streams was waste from his processes and that he had paid for that waste.  Perhaps, if the processes were more efficient, he would be putting less money into the local water.  A few years later, he received an award from the state for environmental stewardship . . . and a Baldrige Award.  Socially responsible decisions made ultimate business sense.

About ten years ago, I installed solar photovoltaic panels on my roof at considerable expense.  The decision was motivated by a love of technology, a need for back-up power, and a desire to reduce the consumption of grid power by my home.  Friends and neighbors laughed and pointed to the long payback period.  However, “payback” is not the only way for a business to evaluate an investment.  My system makes enough electricity to return 6% per year on my investment—and that’s tax free.  (You never pay tax on savings.)  Another socially responsible decision that makes business sense, but only if you know how to evaluate the decision.  I’ll take a 6% tax free return any day.

I once visited a hospital in CA that sponsored a health fair that provided well-child exams and some immunizations without charge to a local indigent population.  I asked why his hospital would do this, and he replied: “My kids play with their kids.  When their kids are healthy, my kids are healthy.  Besides, when they do get a job and money, guess where they buy their healthcare!”  There was more.  He pointed to a pushcart in the hospital lobby.  “That guy used to be on a street corner in town.  Business was poor, and he had no health insurance for his family.  Now, my employees have ready access to good coffee, he has health insurance, and guess where he comes for care!” It’s still not clear that the health fair was a good business decision, but the CEO had evaluated it from social and business aspects and made his decision.  Even considering the donated time and medications, you’d probably have to include the enormous PR value to sell this to the board.  The CEO had done this, and the board had signed off on the health fair for several years. 

My point is that social responsibility and business decisions are not really such strange bedfellows.  Sometimes it means making the decision to “do the right thing,” and then finding a way to make money off that decision.  It’s all in asking the right questions and framing the answers in a way that business people understand.  Perhaps the quality professional is uniquely positioned to help with these decisions, given our emphasis on data collection, analysis, and presentation. 

DEFINITIONS AGAIN

In his 7 Jun posting, Paul Borawski asks whether “quality” is more related to the product/service or to the organization as a whole.  In his speculation, he references a report written by an ASQ Board member for The Conference Board.  The Quality Council of The Conference Board opines that Quality is not merely a set of tools, but they’re a little unsure about what the alternative is. 

The subject of the paper is ostensibly what CEOs are thinking about, but most of the discussion centers on how to achieve excellence in the areas under discussion.  How do you “create a culture of innovation?”  How do you achieve “Global expansion” without over extending.  Human Capital is a perennial problem—how do you get the best employees and then get the best out of the employees you have? 

 Is any of this relevant to healthcare?  Does anyone on the sharp end of healthcare care about innovation?  Global expansion?  Human capital?  Without any real competition—particularly price competition, there is little serious interest, and we even seem to be getting less competitive, as major players stake out spheres of influence.

Whither “quality” in healthcare?  If it’s not a set of tools or techniques, what does quality look like in healthcare?  Part of the answer comes in one of the strategies from the Conference Board under Innovation: “Create a culture of innovation . . . .”  In a comment on Paul Borawski’s original blog, Mike Alumbaugh refers to an “excellence centric culture.”  So what’s a culture anyway?  And how does it relate to quality (whatever that is!).  Think of culture as “a collection of beliefs shared by a defined population.”  Think for a moment, if everyone in your organization worked every day to do whatever they do better than anyone anywhere.  Congratulations.  Assuming you define “quality” as doing something really well, you have just created a quality culture.  Everyone in the organization shares the belief that quality is important.  They know the CEO believes it is important, so quality is now a culture, and employees will work to further that goal. 

Some years ago, I was standing on the deck of the Queen Mary 2.  Three senior officers came thru a door onto the deck near me, and as they did so, one of them bent over to scoop up a scrap of paper from the deck.  Why did she do that?  Cleaning the deck was not her job!  But, yes, it really was her job.  Keeping a neat ship was part of their culture, so of course she would pick up a stray scrap of paper, as would any other employee.

A patient’s family wrote me a thank you note after one of our employees changed a flat tire so the departing patient wouldn’t have to wait for the repair truck.  I knew nothing about this but I wasn’t surprised.  It was consistent with our culture of providing exemplary service—of course he would change the flat tire and not regard that as anything special.  That’s what culture does for you—shared beliefs.  Of course the nurse would make her intake visit in the parking lot, so mom wouldn’t have to awaken her sleeping child. That's what we do here.

You can define “quality” any way you want.  It can mean excellence in customer service.  It can mean cost effective care.  It can mean all of the above or other things.  The only trick is getting employees to share that definition.  That’s leadership. The end result is a culture of quality in the organization.  Tools may be useful and used, but it is the pervasive culture that defines quality in the organization.   A collection of beliefs in a defined population.  

Quality in Government

Is this an oxymoron?  Well, it kind of depends on how you define “quality” and who your customers are.  I work in the Office of Medical Services of the Department of State (DOS).  One customer group we deal with is DOS employees who want to serve overseas.  Our other customer group consists of job applicants with some medical condition that may prevent them from being hired. 

Those in the employee group have little clout as individuals, but as a group they are potent.  If enough of them become unhappy with our services, a directive comes down from above to “FIX THIS PROBLEM!!”  Once we understand what excites senior management, we fix that problem.  And then we fix it again, until it is so slick, we get kudos from customers. 

The applicant group is less powerful.  Some write their Congressman, and that gets attention tho not usually the desired result.  Some hire lawyers.  Again, attention but not usually the desired result. 

And then, a funny thing happened.  Five years ago, we adopted ISO 9001 as a management system.  Now, each of the 30+ sub-processes in MED has a written procedure about how they do what they do.  They know who their customers are and actively solicit input.  The most common metric is clock time, and “stuff happens faster now.” (A quote from an employee survey.)  One process in my office that routinely took 60 to 90 days now gets done routinely in 2 to 4 hours.  A few years ago, it took, on average, 11 months to hire a new employee.  Last month, we interviewed an applicant who applied only two months ago. 

If this still seems long to you, you’ve never dealt with OPM or applied for a Federal job.  If you do so, the person who wants to hire you may never see your application.  Some clerk in HR, who knows nothing about the job will decide how well qualified you are.  The office that has the opening will only see the top three names on her list.  For the rest, it’s a coin toss.

Are we truly worse that the civilian healthcare industry, as Paul Borawski suggests?  No.  We’re better, and I can prove it.  We collect HEDIS data every month from each of our 180 primary care offices around the world.  (Now there’s a challenge!)  Three times a year, we compare our data to the best US healthcare system results and discuss improvement strategies at the senior management level.  In general, we do well, although there are some special challenges in our system.  (Like getting a frozen vaccine to Ulaanbaatar.)  One thing we have that makes all this work is a culture of quality—the universal desire to do a good job coupled with the knowledge that senior management shares that goal.  Each quarter, we discuss errors, deaths, and complaints with those providers stationed in Washington.  I once received this email from a medical officer overseas: “Bob, we made the following mistake in our health unit this week.  Please discuss it at your next meeting.  I’d like to see what the group thinks.” 

How do you get there?  It takes leadership, consistency, and credibility.  It can be done in government. 

But Are we Happy?

Are software quality engineers really the happiest employees, as suggested by Forbes Magazine?

Is happiness related to occupation?  Or what does make us happy anyway. 

The country of Bhutan famously publishes a Gross National Happiness Index for the country and has a minister of happiness.  (Policies in Bhutan must pass a Gross National Happiness review.)  By definition, happiness in Bhutan includes the following goals:

1. Sustainable development
2. Preserve cultural values 
3. Conserve the natural environment
4. Good governance. 

I think good governance would not include prostitutes and parties in Las Vegas.  Mountain top mining in WVA would also probably fall out, so the US would probably not do well, but we are considering a measure of Gross National Happiness. 

But these are National goals, not individual, personal ones.  What makes individuals happy?  If it’s job related, I guess that would rule out wealthy wives who “never worked a day in her life.”  What about the money that allows some to live without working?  (Personal note:  Since my wife won’t read this, I can define “work” as an activity that someone else pays you to do.)  Numerous studies have concluded that a lack of money dissatisfies (makes you unhappy), but after a basic amount, more money doesn’t further enhance happiness. 

Health?  You would think so, but some sick people are also very happy.  Listened to an NPR interview  with a woman who sat at the bedside as her brother died of AIDS.  His last words were “I’m a happy man.”  Of course, you would then have to define what “health” means, and who is responsible for health.  Most would agree that air pollution (as a source of ill health) is the responsibility of the Federal government.  But the US life expectancy took a dip—first time ever—in 2011 due to obesity.  Now whose fault is that?  Health can certainly be a factor, but the correlation is missing.

Occupation and employment.  Some occupations are indeed happier than others.  Or maybe it’s just that happy people just gravitate to those occupations.  Employment is better than unemployment, and there are companies that are better places to work than others.  While we may be enjoy our job and be happy at work, these are factors on the fringes and probably not the defining factor for personal happiness.

It’s decision time!  Can I have the envelope please?  Happiness is . . . love.  It’s having someone to love and being loved in return.  In her poem, “The 5:32” Phyllis McGinley wrote:

“This hour best of all the hours I knew:” (while waiting at a suburban rail station)

“And a man coming toward me, smiling, the evening paper
Under his arm, and his hat pushed back on his head;
And wood smoke lying like haze on the quiet town,
And dinner waiting, and the sun not yet gone down.”

Q For Sale

What is this “quality” that we’re being asked to sell?  Using the word as a noun implies that it is concrete—a product that you can package and put on the shelf.  “I’ll have three pounds of quality, please.”  More frequently, it’s used as an adjective, as in “quality service” or “quality products.”  It’s common to see a mission statement profess to provide “The highest quality healthcare,” whatever that means. 

The term has become a slang expression, having no intrinsic meaning, and some organizations have dropped it.  “Quality” appears only once in a footnote on the Baldrige Award web site.  The American Society for Quality is now known as ASQ, and you won’t find a translation of those letters on their web site.  It is possible to go thru the ISO 9001 standards and remove the word “quality” entirely, without altering the meaning of any sentence. 

So then, what is it we’re being asked to sell?  What does “quality” look like, and why would anyone spend good money for it?  Perhaps it is an ethereal concept that we can sense or feel but cannot define.  More likely, it is an aspect of organizational culture, relating back to the concept of Total Quality Management.  Every employee has a compulsion to do whatever they do better than anyone else, anywhere.  But that’s not enough.  Employees must perform together to provide a service or product that is best in class.  But even that’s not enough.  They must do this reliably, every day, as a habit.  “This is how we do things here.” 

More than once, a Baldrige Award winner has been asked, “You just won this nice award, but what are you going to do on Monday, when you go home?”  Without exception, the astonished CEOs have replied, “We’ll do what we always do on Mondays. This is who we are.”

So, back to the original question: What is it that we’re selling? A concept?  Well no, it’s more like a culture.  Can you sell culture?  Can you impose a culture as an outside consultant?  No to both, but you can help senior management change the culture in their organization, assuming they see the benefits in doing so.  And that’s something we can sell.  AHRQ and others have demonstrated that you can create or improve a patient safety culture.  You can, of course have both—a safety culture and a quality culture.  They are not incompatible, but they are also not identical.  In either case, you have to work at it.  As Paul’s quote from Deming implies, “Success is not guaranteed.”  I like the quote from Paloma Herera (see last month), “First you must have a passion.  Then you must work very hard.”  That’s a formula for success in almost anything. 

STEM

Paul Borawski asks why students aren’t flocking to Science, Technology, Engineering, and Math (STEM) as career fields.  The responses and his analysis focus mainly on how to improve the educational process in these fields.  Maybe it’s time to do a root cause analysis and a contrarian analysis of why anyone studies STEM, or anything else.

First guess is money.  People study fields where they can make money.  Yes, some do.  And many are happy doing that, tho 2008 brought a sobering reappraisal of careers in banking and finance.  However, salary is not on every employee’s top five list, and not every medical student wants to be an orthopedic surgeon.  For most people, once you make enough money, more is not a sufficient attraction to do something you don’t like.

Family tradition figures prominently but again not an invariable indicator.  If you grow up in the industry and hear conversations at the dinner table, you will at least have an interest in the field.

Talent or genetic predisposition is important in music, art, acting, etc.  Math and engineering; perhaps.  I’ll put personality into this category:”I like doing things that this field requires.”

  

Passion.  An inspirational teacher or mentor may be enough to create a college major and perhaps launch a career.   Some months ago, a young girl asked ballerina Paloma Herera for the secret to becoming a good dancer.  “There is no secret,” she replied.  “You have to have a passion, and then you have to work very hard.” So passion is required, but it’s not enough.

To some extent, we need to differentiate between a career and a hobby.  I know many people who are good at music or art but don’t depend on those skills for their income.

All of the above factors may push a student toward STEM, but what about the attractive factors that attract him to those fields?  On a survey, State Department employees checked that they identified with our mission and felt that they were making a positive contribution.  Meaningful work that is appreciated—but not very much.  Anyone want to be a Federal employee today?  Maligned and attacked almost daily.  Salary stagnant, and future benefits in doubt. 

OK, what about the STEM fields.  Are Science and Technology respected and valued?  When science says the world is getting warmer because of the release of CO2 by humans, does Congress respond with a carbon tax and other measures to reduce the burning of fossil fuels?  Do we embrace the science of stem cell research to relieve the disease burden of man?  When engineers (including quality professionals) offer tools and techniques to improve the efficiency of  healthcare services and thereby reduce costs, do we implement their advice?  In short, are STEM fields valued and respected in our society?  If not, how can we expect to attract students to careers where their scholarship is denigrated and their advice ignored?

What can we do?  One easy answer is to appoint and elect individuals who do respect STEM to positions responsibility.  Make that a litmus test for politicians: “If science dictates a politically unpopular stance, how would you vote?”  Blind acceptance is not required, but the facts cannot be denied out of hand.  Decisions must be made by rational process that conveys a message of respect for the STEM fields.  Then, students with the requisite talents and inclination will be attracted to fields where they can make a meaningful contribution to society. 

An Outmoded Concept

Paul Borawski offers examples of the good and the bad of 2011 in his recent post .  His use of the word "quality" highlights the abstract nature of that word--something the world is no longer willing to accept.  You have to be more specific and tell us what you mean by "quality" before we're willing to agree with you that "quality works" or that it has a rightful place in society.  What good is it?  What has it done for me lately?  The Institute of Medicine assessed the impact of their publications, "To Err is Human" and " Crossing the Chasm."  These two works sharply criticized the US healthcare system for its many failings and prescribed broad approaches for improvement.  Ten years later, nothing has happened.  Various quality initiatives in healthcare have essentially failed to address either the incidence of errors or the cost of the services provided. One can point to various initiatives or projects that have demonstrated small improvements, but nothing has spurred the industry to emulate these successes everywhere.  The reason for this general failure is pretty clear--money.  It's not that there isn't money to implement change, but that there is no financial incentive to do so.  There is no financial incentive for improvement.

Following that negative note, what were the discrete disappointments of 2011?  Paul cites the discontinuance of funding for the Baldrige award.  ASQ has a financial interest in the Award, and it's always disappointing to lose a client, so he’s hardly an impartial observer.  Beyond that, Baldrige was a concept that came and went.  Applications have diminished in the last several years, and the whole system has degenerated into a commercial enterprise, with consultants and writers to enhance your application and improve your chance of success.  The original concept of identifying a few examples of excellence for others to model has become a competition.  The ideas and criteria are still valid and still provide an excellent guide to excellence in any industry.  We just don't need shining examples any more.

 Don Berwick/s departure from CMS should be on most people's list of disappointments.  A victim of Republican ideology, he brought credibility and stature to the position.  Not everyone agreed with all of his ideas, but then, not everyone agrees with me either.  I hope that's OK.

Paul cites the high point of his year as going to a meeting in China.  Maybe that's a sad commentary on the real absence of anything good.