Industry Accelerator for Healthcare with KPMG from Workday
Technology is going to be the critical enabler that provides information to executives, decision makers, and ultimately employees and staff, to help them make the most effective decisions as quickly as they can.
I'd say there's three major challenges that our health care clients are facing. The first one has to do with nursing staffing and the challenges with maintaining staff throughout the pandemic and the challenges as a result of the Great Resignation and what's followed.
The second is-- increasing supply chain costs, also as a result of the pandemic, as providers have had to shift to more local providers of their medical and surgical supplies, and the impacts that both of those challenges actually have had on their operating margins. And I'd say a third major factor has to do with changes in the reimbursement models that health care providers are facing as they shift more from a traditional fee-for-service model to more of a value-based care model.
Technology is an important role, because there are not enough people to throw at a particular problem. And so, as our health care customers scale their organizations technology is really an enabler that allows them to grow and to operate more efficiently than they could than they could without it.
Health care providers have focused the majority of their technology investments on improvements in electronic medical records with minimal investment in the core business management capabilities that these customers need in and an increase in cost for both materials and people have squeezed the margins.
The health care industry accelerator program that KPMG and Workday are developing together is really a continuation of the kind of work that we've been doing together for the past several years, to help to drive value for our health care clients.
It's about implementing more than technology. It's about helping our clients to redefine their technology investments by looking holistically at how they can impact their operating model, their business processes, their technology, and providing supporting data and analytics, they can truly transform their back-office functions.
The idea is that if we can get our customers to own and operate Workday, then they'll begin to deliver value back to the organization faster.
We worked with a large health care organization in the Northeast that needed to dramatically improve their supply chain function. They were suffering from rogue spend and a lot of purchasing that was not on purchase order. By transforming their supply chain operating model, by implementing Workday, we were able to take significant cost out of the supply chain function. In the first year after this transformation, they saved over $17 million.
The staffing challenges that health care providers have faced over the last few years are only going to continue, and it's going to be incumbent on HR organizations to develop strategies to partner with their employees and treat them with the same value that they treat their customers.
There'll be continued changes in the revenue and billing models in health care. And we also expect that the cost of both people, in terms of clinical staff, and the cost of materials will continue to increase. Health care customers expect that we will engage with them, and industry accelerators are a mechanism for Workday and our software partners and our delivery Partners to communicate the way that they expect us to.
Measuring Value with the Metrics That Matter
Good afternoon, everyone, and welcome to Measuring Value at the metrics that matter. Really excited to have everyone in here with us today and hopefully everyone's enjoying their rising experience after it's been so many years since the last rising event. So, John, actually, you want to give me the clicker dial? The remote would help to move us forward in the presentation.
So first, just get started with some brief introductions. I'm Laura Self. I'm a director with KPMG. I would KPMG was the implementation partner with Laurie Children's as we did our full platform implementation. And my role on the program was the lead director. So, in charge of the overall day to day program management and coordination across the program.
John, Everyone, good afternoon. My name is John Lehman. I am the director of the Financial System Management Team at and in Robert H. Laurie Children’s Hospital. I've been with Lori for approximately two years. Prior to Laurie Children’s, I was at a different Workday customer where we implemented Workday back in 2015.
So, John loves implementing Workday so much that he said, I need to do it again really quick. As you've probably seen in all your presentations, Safe Harbor Statement. But where I'm going to jump to get us started first is just level setting a little bit on ERP implementations and a little bit of background and context on Lori.
So, I see a whole bunch of blue lanyards out there, but I also see some orange and what I'm going to say will surprise no one. ERP implementations just are hard. A lot of work whether you're doing HR only things only or a full platform like Laurie that included HR, Payroll, financials, supply chain.
I think you got them all.
I get them all. And as i think about back when we first started with Laurie Children’s, as they were wrapping up their systems selection, this is back in 2020 and they started thinking about their system implementation. If everyone can recall back then, spring of 2020, covid was coming to the US. A lot of things were shutting down. And why do metrics matter?
Well, with COVID occurring wasn't going to be enough to do an ERP implementation that was on time on budget. Lori was focused on how we are going to provide value, business, strategic value to the organization, and if we're going to undertake an implementation, particularly at a time where you think about a children's hospital, hospital and being faced with what was occurring with COVID 19 and no one really knowing where some of that was going right, a lot of us were suddenly becoming remote.
We all know health care workers, hospital. Not everyone can go remote. You have to go in, do your job. Clinicians supporting. Lori is a research institution, so thinking about the helping in terms of children and if they get infected with COVID 19. And so really important time and to think about Laurie Children’s choosing to bite off an ERP implementation.
It was really important that we were going to provide strategic value to the organization if they were going to undertake it at that time. But with that, before we dive too far into talking about measuring metrics and bringing business value through an ERP implementation like Workday. John is going to provide us some background and context on Laurie Children’s as an organization.
Thanks, Laura. So, to quickly set the stage of who we are. So as previously mentioned, Laurie Children’s Hospital, located in Chicago, Illinois, we are a market leading children's academic medical center with annual revenues north of 1.4 billion, along with a 2 billion investment portfolio. We serve over 200,000 patients a year with a 364-bed hospital in downtown Chicago.
We have we have 15 outpatient centers. We have strategic partnerships with 15 hospitals in the region, along with a groundbreaking research center. Finally, we do have a foundation arm. And just as a quick shout out to them, we have just completed a 500 million fundraising campaign in the prior year from an employee count perspective, we have approximately 7200 active employees with another 4200 of contingent workers.
All told, within the organization we have 13 legal entities with the three largest being the three that I have that I mentioned previously Research Foundation, Children's Hospital.
Laura And so this quick plug, as you can hear from those stats, Lori loves their data, right?
But jumping in today, so what are we going to cover? We're going to talk about first and foremost driving value and delivering value to Workday. So, thinking about strategically, how are you going to enable value through a workday implementation? Then as we think about the implementation, what are the key steps to be able to leverage and get that value out of the system?
And then where are our initial results? So, we've been live for about a quarter, a little bit more than a quarter. And so, some good or early results, but just as equally important opportunity to identify chances to continue to enhance and improve. Last but not least, where is Lori going to continue to go? And then we'll wrap up with some Q&A.
So, first thing I'll mention and then I'll hand it over to John, is that I mentioned before earlier slide that if Lori was going to implement Workday, especially with everything that was happening with COVID 19, the resource constraints that go with it, that increased remote work, there had to be the delivery of business value that supported the strategic goals of the organization.
The mission that Laurie Children’s has in terms of providing health care out to the Chicagoland and the greater Midwest area. And so, I'm going to hand it over to John to talk a little bit about how Lori, from the top all the way down to the bottom, thought about the thought about what types of foundation workday would need to provide to support their strategic initiatives and their vision.
Yep. So, let's rewind a little bit back to 2020. The organization at the time developed a five-year strategic plan, which was dubbed Vision 2025. Vision 2025, as you can see in the slide, lays out our primary goal as an organization to be a national leader in achieving a healthier future for every child. We broke down this goal into five essential pillars that spans the entire academic medical center.
We first wanted to provide the best care and experience for our children. We wanted to advance pediatric medicine and science. We wanted to be an employer of choice and care for more children. And then finally, we wanted to do this all with maintaining our fiscal strength within each of these pillars. The organization then identified opportunities of improvement, compared to current state at the time.
For example, from a fan perspective, if you take a peek over at the Green Pillar, we wanted to improve our financial and regulatory reporting and compliance process from be the employer of choice perspective, which is the yellow pillar. We wanted to offer more self-service functionality for our employees, along with being able to complete more transactions within mobile. Having this vision identified early and clearly communicated from our executive sponsors.
It was instrumental in getting our organization focused and moving down the right path together. As you can see in the five Pillars, our strategic initiative covered across the entire organization. It wasn't just going to be a back-office project. It wasn't just going to be about our nurses. It's everyone within the organization moving forward in one path. So as Laura said, how did Workday kind of play a role in this vision?
We believed Workday was the best vehicle to get us to those improvements that we're looking to achieve by 2025.
Thanks, John. And I want to highlight a key thing that I heard John mention in there, and that was the idea of the executive sponsor was conveying the need for this to support the strategic goal. And maybe, John, you can just spend one minute before we flip forward talking a little bit about how the executive sponsors thought about this being crucial, as you said, organizational wide and not just the back office.
Right. From office, from a Vision 2025 perspective, it became extremely important as an organization to have one goal in mind. We wanted to make sure that the organization as a whole understood that this vision, the strategic plan that was being developed, it was now being developed just for an individual group within the organization. But instead, it was holistically viewed as, we need to achieve this as a team, We need to achieve this as an organization in order to move forward.
And as we shift forward to talk then a little bit about then tactically, how did we select things to measure? I'll just say one of the things that impressed me most about the Lurie Children's organization was that desire from the executive sponsors to support this. Our steering committee was made up not only of the CFO, the CEO, HRO, and the CIO, but also the chief operating officer.
This was critical to Lurie as an organization that as we thought about this, not just finance, not just H.R., but the clinicians, the researchers, everyone needed to be engaged. Everyone's role may be different. Some of us were full time dedicated to the project and others. Their main component may ultimately to be engaged in as part of training or to provide a perspective on what certain reports or business processes looked like.
But from the top down, we really did see the organizational commitment to the success of this program. And so shifting gears, talking a little bit about then, how do we define measurable metrics, because it's great to say that as part of this implementation, our goal is to help to provide more care to more children. But it's another thing to determine it in a measure of all actionable way.
We want to talk a little bit around how did we drill down? And so, John, maybe I'll ask you to give this group a little bit of insight into drilling down from those strategic objectives into some of the measurable things that we sought to measure that we felt could move the dial on the bigger vision. The bigger vision.
2025 picture.
Yep. Yep. So, what have we done so far? We talked about kind of what Laurie Children’s is. We talked about our Vision 2025. Now we'll be done during this slide is talk a little bit more in depth about each of the individual pillars using 2025 as I see the lights here using the Vision 2025 as kind of our guiding light.
Now, our next step in the whole process was to talk through with our Workstream leads, with our executive sponsors to develop the critical, the relevant, the measurable metrics that Laura was alluding to. Identifying the metrics was extremely important, and during this process, we needed a way to tell the story to our executive sponsors that all of those opportunities and improvements that we were mentioning in the other slide is going to be measured in a certain way so that we can show that there is progress being made as part of this project.
Additionally, having those metrics identified, it will help support the argument that we are meeting the goals identified during the Vision 2025 Strategic Vision. So, as I mentioned before, each Workstream worked with their executive sponsors. We worked hand-in-hand to develop the individual metrics were where we were determining how we're going to measure success along the project. In many cases, from a fin and supply chain perspective, we did have many of these metrics already identified along Children's, where we were able to use this as our baseline for future comparisons as we go live in Workday.
We we're able to leverage these established metrics and use them, as I mentioned to baseline for future enhancements.
A key thing I will call out before we move off the slide, on this slide, we talk a lot about what we were going to choose to measure, to provide value. But back to that earlier point around, it was an organizational objective. One of the metrics you don't see on this slide, though, that was also determined to help define the success of the program were metrics around training and change management.
Because Lurie Children's was committed to this idea. Organizational goal. If we are going to do this as an organization, then we need our back office, we need our clinicians, we need our researchers, we need our doctors. We need everyone to attend the training and the change management that will help to make this successful. And so just a key call out.
I mentioned while we're focused here on the success metrics of how value was provided, it was equally important as we think about getting to those to obtaining those targets with the commitment from the organization to do training, to do change management. And I'll say one of the reasons when we flipped to another side to talk about some of the early successes we're thinking is in large part, I think due to leadership not only being committed to that idea of having goals for training, but making sure that the individual organizations within the hospital obtain those objectives and that was all the way from the CEO, Dr. Shanley, each of the chief executive sponsors and chiefs of
other departments, and our VP's directors within the organization that ensured that their teams were meeting those commitments.
So, we talked a little bit about metrics, and John started to shift us in to talk about some of the earlier setup in terms of how we chose metrics. And so, we want to spend a little bit of time on the implementation itself to talk about some of the things we thought were really successful and we'd wholeheartedly recommend.
And then with any implementation, some opportunities we see in ourselves that we ourselves even could do better and we would do differently. When John goes to do his third, third workday implementation someday, this Joakim, we have a huge contingency from learning. So. So obviously every workday implementation, we follow our phased deployment path. So, we've got planning and architect.
Then configure, prototype and test and deploy. And as John mentioned, with planning and architecture, we really got started. Identify saying, okay, if we know what our strategic objectives are, let's identify the metrics, let's determine where our baseline is, and then let's set a target. Let's set an objective of where we'd like to be post goal five. And so, John, you know, I'd ask you for your thoughts, particularly having been through multiple implementations.
What are the some of the things that we did well are opportunities for improvement as you think about that planning architecture phase and selecting metrics and determining baselines and targets.
From an implementation standpoint, I would say I think we've worked really well at Laurie Children’s was the executive sponsor communication that we had with them. As Laura mentioned, they were heavily involved from the very start with not only identifying the vision but also being in the details when we're deciding on what reports to write, what integrations to be involved in, why are we pivoting from one change to a different change?
At first it was kind of awkward to have our CFO and our CIO in those detailed meetings, but at Lurie Children's, they were heavily, heavily involved, which now looking back on it, made the process that much easier. Whenever we need to pivot, whenever we need to make changes. They were in the weeds from the beginning, therefore making the decision-making process a lot more efficient compared to if we needed to get them up to speed as to why things needed to happen certain way.
So then shifting gears, obviously after we got through Architect, so we had set metrics set, got in the baseline data, agreed upon targets and as you mentioned, had executive sponsor sign off. We started to shift into configure prototype and testing. And so, since we talked about something that worked really well there, maybe I'll ask you for, for flip perspective, every implementation opportunity for us to do something a little bit better, take a lesson learned forward.
What was our opportunity to do something better as part of that phase?
Yeah, so the easy one that pops out and for those of you that our clients are really with Workday, you guys are well aware of the plethora of standard reports that are out there. However, in Laurie Children’s case, we did need a large amount of customer reports where, looking back on it, we wish we spent more time in developing testing those reports.
There is an infinite number of data points within Workday, but being able to extract that data, either visualize it through dashboards or discovery boards, or even just getting that data out through a report sometimes is difficult and you don't necessarily want to drill in when you're trying to just extract the data as quickly as possible. So, looking back on it, customer reports kind of stick out.
I wish if there was more time within the project, we would have developed or created and developed our report repository a little bit more. At the same time, we could even take this one step further, developing our dashboards, developing our discovery boards. All of those bells and whistles that is available within Workday, if we could have kind of developed those more upfront and had those as a those available go live versus developing them, post-school life I think would have been a big win for the organization.
Yeah, completely fair. And I'm sure as those of you with Blue Lanyards know what that pressure feels like when you're during an implementation and you're determining what are the things you're going to get done prior to go live versus the things you choose to do. Post goes live, enhance that one month post, go live two months post, go live.
Sometimes there's tough decisions to be made.
Agreed. And that was sort of the expectation. Obviously, going through any implementation project, there's going to be competing priorities, new priorities that you had no idea that's going to come up. By no means was that a dealbreaker, by no means where there are no workarounds and go live. But to answer your question, if we had to do one thing all over again, customer reports for sure is something that we would spend more time on.
Perfect. Appreciate that perspective. And, you know, I'll say now we're really not that that far from deployment. So, Laurie Children’s went live April April 1st of this year and is typical doing some stabilization. We started to get some metrics in so maybe a perspective you guys had a relatively calm goal line, which is always an exciting thing.
So, any good news or things that you'd reflect to the group that you do a little bit differently for deployment related to metrics.
From an initial results perspective or where are you going with this one? Okay.
I know I'll clarify. So just from a metrics and monitoring and measuring results if we think about that time period. So went live April 1st. Obviously, you know, to some extent can start measuring data right away. Financials sometimes a little bit on a lag because if we think about April, you you're closing your books in your old system before you really start to transition in the new environment and ACM is obviously ordering supplies day one in the new system.
But as we think about measuring metrics and having the things in place, I guess any tidbits, any lessons learned for things you thought that that went well on day one or things that you think, hey, if I had the opportunity to do this all over again, I do it slightly differently.
From a metrics standpoint. I believe our expense report process actually has gone very well. That is one, once we get to the initial results, slide the turnaround time that we have within expense reports. That was one key metric that we identified within our EP space. Part of that was due to the just the workday process is a lot more efficient compared to what we were doing back in our old system.
But the other piece to that is just the transformation that we went through from the loss world to workday definitely attributed to some of the better metrics, I would say, around the expense report reimbursement process.
So obviously, you know, pay off for for going on this journey with John and I, we do have some early results, Like I said, were actually these are from the first quarter for about four months, but there have been some early wins. So, some really great successes that we're seeing in payroll space, a couple of other spaces. So, before I transitioned to talk about what's also equally important, you know, where we're still looking to achieve some metrics.
Maybe, John, if there's one or two metrics and you hear that, you know that particularly you're excited about or you think are providing value for the organization that you'd share with the group.
Yeah, I mean, we talked a little bit about expense reports. That's kind of the key one from a finance perspective, from my lens to we don't have this one necessarily on our board, but in regard to our period close schedule. So, we are trending towards a lower number of days within our period close scheduled. So that is all encompassing of account reconciliations, posting accruals, all that good stuff within the month on closed process.
So that's one that is kind of overarching across the accounting department where we feel very proud that we are starting to see the benefits of our implementation or we're starting to get a lower number of month than close dates.
And so, as I mentioned before, we've got some program wise, some early wins that are really excited. But as important as the early wins, we do have some metrics that quite aren't hitting target yet. And I just highlight that that doesn't make the program failure a failure, but it's just as important. So, you can focus and home in on the opportunities that either continue to refine a process, continue to either change in integration.
I'll report to really be able to achieve those objectives that you were looking to set forth as part of an implementation. And so, metrics to me, the successes are as important as where sometimes you sometimes fall a little bit short early on because it gives you the focus to know what you need to work on. And so, any thoughts on that, John?
No, I think you hit it right on the head. I mean, metrics is not meant to just be a way to measure your successes. If you're truly being honest with your metrics, there are going to be areas of improvement that then just helps you again, tell the story of kind of where you're at from an implementation standpoint. So, metrics is not meant to be only show the good stuff on a page, right?
Metrics is supposed to be where do you want to be as an organization and factually support that information through metrics to determine where you at in that original thought process. If you're not there yet, then you have the opportunity and you do have the data to then say, here is where we need to focus on in order to optimize and get to a better place compared to where we are currently.
And so last parting thought, we'll leave this group with before we open up to Q&A is just where is Lurie Children's going? None of these are specifically planned, but they're things that we've talked about. You heard John mentioned before Laurie Children's had a wealth of data to help us baseline before they got started. That's because they're a data and insight-oriented organization.
And as part of the work, they implementation, they continue to be a data and insights-oriented organization. And so, as they think about some of the opportunities in front of them, it's continuing to think about what are the opportunities in Workday to have more data, more insights, improve processes. And so, some of the things that have been discussed potentially for roadmap, thinking about position control, productivity reporting, as well as planning, budgeting and forecasting.
Through adaptive and through business. Yeah, exactly.
So with that, we're at the end of planned remarks and we'd love to open up for Q&A. And so just friendly reminder, if anyone has any questions, we'd ask you to go up to the microphone that's in the center aisle so that everyone can hear you and this is being recorded so that the recording picks up the question.
Hi there. I'm Angela with University of Virginia. And I'm wondering about your Metrics.
Kind of transitioning from hyper care to stabilization and not quite.
Sure, where you.
Are in that journey since April. But what were some indicators that, one, you've either hit or you're trying to hit and to kind of know about where you are in that in that process?
Yeah. You want to take them? Yeah.
Okay. Great question, Angela. And what I'd say is, so first and foremost, just a little bit from a timeline perspective. So went live on April 1st, I'll say very intense hyper care for the six-week period. Afterwards, though, we know that stabilization often continues to take place for time beyond, I'll say, that hyper care period. But we were lucky in the fact that a lot of either security cost center and those type of issues able to get resolved very quickly in the first six weeks.
So, we really were able to move into what, I'll say, a more calm stabilization period after those six weeks. These initial results are from the first quarter. So, they are as of the end of June. And the good thing is, while John made the comment that we would have loved, they have some customer reports, dashboards available on day one, we did have the means to get the data out of the system.
It wasn't just quite as automated, stable, easy button as we would have liked. So, we were able to start tracking metrics as early as May for April, June for July. But we've continued to work on and really made progress towards is now having some dashboards in place that, you know, you hit the easy button and we can track results.
But as those initial results were as of the end of June, so early indicators are that we're seeing a lot of the value that we were looking for. As John mentioned, we've got one or two areas specifically in an app where we're looking to continue to drive value, continue to make strides forward. But as we mentioned, we've got the metrics in the data to really try to be able to hone on in terms of trying to get some success metrics there.
So, we want to get further along in our optimization efforts as well. So, I would say that compared to we're still going based upon our original hyper care metrics, we are going through our first year and as well. So, Laurie Children’s of Year End is August 31st. So, once we get a couple of quarters under our belt, once we get through some more of our optimization efforts, then I believe at that point we'll be able to relook at those metrics to determine if is still applicable given where we are in our workday journey.
Most of those metrics you were showing were comparison to the system you had previously, right? You said, for example. And so, are you bringing that historical data into PRISM and generating benchmarks to create those comparisons, or is that done externally so we don't have PRISM currently? PRISM is still a decision to be made if and when we're going to implement that.
We did bring in Lawson data from AGL conversion perspective, but a lot of the benchmarking that we're talking about is comparing data within Workday to benchmark reports that we already had created from Lawson from our Lawson list. Mm hmm.
Hi, I'm Marjorie from Ultimate Health Services. Earlier, you had mentioned that your organization was made up of three entities. Are those three separate companies filing taxes separately?
Yeah. So, the three entities were mentioned before. Those were primarily our main three from Laurie Children’s. Overall, we have 13 legal entities. The three main ones that we're in with that I mentioned earlier in the slides was our research foundation and children's hospital companies. Those are standalone companies within our company hierarchy.
And they all go live at the same time.
Oh yeah. Oh yeah.
Can you give me help?
Yep.
My next question is post implementation or during implementation. Did you staff augment?
So, the one was I'm sorry, I didn't hear the piece did.
Either during implementation or post implementation. Did you staff augment, did you increase your staffing, salary?
Children's did choose to, to get contracted resources to help support and backfill. Again, executives very focused on the success of the programs. And one of the things that was critical to them was that the core project team members had enough time to devote to the implementation. So, they selectively chose key areas to have backfill and contractor resources come on board to support.
Or any of them converted to full time employees.
Yes. Yes. Okay.
Thank you.
Sure.
Hi, I'm Diana Staples from Barnes Point Healthcare, and I also worked on Lawson a long time ago. Are you using dashboards, worksheets, or discovery boards to put that information in front of your management team?
Yeah. So currently we have customer reports, so we're the ground level from a reporting perspective. At Laurie Children’s, we have developed a number of customer reports all throughout advance reports, Matrix reports, compiles, and reports. Our next optimization effort or our next enhancement around reporting is the use of dashboards. We do have some dashboards created for specific areas around app around accounting, but I wouldn't say it's widely used across the organization just yet.
That is definitely a plan that we have, and it's one of the things that we're going to be focusing on once we get through year end. But beyond dashboards, then it's discovery boards. A lot of good things that are out there, but unfortunately, we're just not at that point just yet. Your worksheets.
Have you ever put the stuff? Correct?
And be able to show it on here? Correct?
Correct. Our use of worksheets in the current moment from offline perspective is primarily for budgeting actual comparisons. We are starting to use worksheets more and more as we get through different month and closes, but as of right now, our main vehicle for reporting is just customer reports.
Any other questions? Everyone's getting ready for the customer appreciation. Pretty good. I like it.
Well, then we would just like to really thank everyone for the time today and hope you enjoy tonight's event.
Thank you.
