This is a guest post by Marcus Hammarberg, author of Salvation: The Bungsu Story, How Lean and Kanban saved a small hospital in Indonesia. Twice. And can help you reshape work in your company. (available on Amazon)
When we first started to work with the Bungsu hospital they were in a devasting situation. Their finances were at an all-time low after years of decline in patient visits. Their operational permit had not been renewed and they were operating on probation, the staff was disengaged and blasé … oh, and one more thing: the roof of the entire second floor had collapsed.
Still, to my great surprise, not many people were upset, engaged or even cared about the survival of the hospital.
Fast forward 1,5 years and you would see a hospital that was making money every day, had not only an operational permit but also got awards for their services, happy and engaged staff … oh yes, and they had a newly renovated roof.
We didn’t hire or fire a single person during this time – and all the work to save The Bungsu was done by the people in the hospital, I merely acted as a guide for new ways of working.
In the end, we turned the hospital from a situation where only the director and her closest staff cared, to a situation where 100 people in the hospital were actively engaged in everyday improvements.
How is this possible? What kind of magic was applied?
We soon realized that the scary state of the hospital’s finances was not only our number one priority but it was also too vague for the staff when expressed in numbers. Billions of rupiah in deficit didn’t mean a thing for the staff.
First of all, those numbers were unrelatable for the average employee, even if we broke it down per day. Saying “we need 18.000.000 rupias per day” to someone that earns 1.000.000 per month doesn’t spark engagement.
We need 18.000.000 rupias per day!
Secondly, and perhaps most important, the staff in the hospital was not interested in budgets, forecasts or financial plans. They worked with patients! We needed something more concrete and closer to their day-to-day reality.
Armed with those two realizations we started to track “the number of patients we served per day”. We hoped this concrete metric would engage the staff. The numbers of presented were truly awful; our financial target was 134 services sold per day and we were averaging on 60-70. Half of what we needed to be able to improve the financial situation!
our financial target was 134 services sold per day and we were averaging on 60-70. Half of what we needed to survive!
I was shocked but the reaction in the room was something very different. Indifferent, unfocused or the occasional shrug. Almost angry, I got up and added a new line, for the number of patients required to break-even; 120. In my upset mood I blurted out:
Below this line we lose money by having the hospital open and we may need to close it!
That got their attention. The jaws of the 70 people in the room dropped to the floor at once. We now had our one metric that matters and most importantly: everyone understood it.
In the next blog post, you will see how this metric, visualized and understandable not only helped us focus on what is important but also made us into a team.
Do you need the one metric that matters to engage your team? This booklet is for you!
In the Bungsu’s Pirate Code for Visualization downloadable booklet I will go into details on how we made this “one metric that matters” engaging, kept it relevant and ultimately saved the hospital by keeping our focus there – using what we referred to as the Bungsu Pirate Code. Click here to download your guide to using the “one metric that matters” in your own team.
This is a very actionable tool that you can you use today in your organisation to make your visualizations matter to everyone all the time.
The Bungsu Story is a fascinating account of a real-life crisis, and how Agile, Lean and Kanban saved the Hospital from bankruptcy! Twice! Get ready for the journey, it’s going to be a bumpy ride!
About Marcus Hammarberg
Marcus is the author of Salvation: The Bungsu Story (available on Amazon), an inspiring and actionable story about how simple tools can help transform the productivity and impact of an organization. The real-life stories in The Bungsu can help you transform the productivity of your team. Marcus is also an renowned author and consultant in the Kanban community, he authored the book Kanban in Action with Joakim Sundén.
You can link with Marcus Hammarberg on LinkedIn, and connect with Marcus Hammarberg on twitter.