We began this series with a detailed explanation of four key criteria for selecting capital projects. In our previous installment, we focused on five critical factors for optimal implementation. Together, these principles form a strong foundation for successful capital investments. However, in today’s fast-evolving operating environment, a few additional considerations can make all the difference—insights our clients consistently emphasize as essential.

Speed to Market  While careful execution is crucial, speed is equally important—not just for maintaining a competitive edge but for addressing urgent population need(s) as soon as possible. Internal politics and roadblocks can slow implementation and allow competitors to catch up or delay the critical population health benefits. Assigning a dedicated project manager can help mitigate these challenges. They can navigate such obstacles, identify time saving modifications and keep all stakeholders informed —minimizing confusion-driven delays and ensuring the project stays on track.

Partnering  While partnership opportunities should ideally be explored early in the project planning phase, new collaboration possibilities often emerge as awareness of the project grows within the community. These opportunities may arise with a competitor, in a different economic sector (e.g. retail setting), or with another organization in the human services sector focusing on one or more relevant social determinants. To assess these potential partnerships effectively, revisit the four Project Selection Criteria discussed earlier (see sidebar). Evaluate each opportunity for strategic alignment, financial impact, organizational/system influence, and risk. A well-chosen partnership can enhance project success, expand resources, and create long-term value.

Stakeholder Buy-In  Like partnerships, stakeholder identification should ideally occur during the project’s conception and planning phases. Initial buy-in typically involves leadership, key staff, and referral sources who support the project’s vision and goals. However, as implementation unfolds, new challenges and opportunities may highlight the need for additional stakeholders with specialized expertise, resources, or influence. The implementation phase also presents an opportunity to reinforce and sustain stakeholder engagement…and avoid losing it. Regular updates, clear communication, and ongoing reinforcement of mutual benefits can help maintain alignment. Proactive ongoing communication minimizes the risk of roadblocks stemming from a surprised stakeholder, and the dilemma of whether to change the project in a way that accommodates them but doesn't fit with the original intent and purpose of the project.

Outsourcing  Consideration should also be given to selective outsourcing, leveraging the same understanding of the operating system at the main component levels that would have been used with some of the implementation planning tools. For services, these are often considered to be people, environment, equipment, and policies & procedures. Can elements of any of these be outsourced in a manner that provides better value to the end customer?

The “Last Word”: Flexibility  Even with a well-defined Capital Project Selection process built on the four key criteria and five implementation best practices discussed in this series, one personal trait remains critical: Flexibility. Market conditions, industry advancements, or even the nature of the project itself may shift after approval. A competitor may launch a similar initiative, or new technologies could impact project requirements—much like how the rapid adoption of virtual meetings during the COVID-19 pandemic reshaped space planning needs. Remaining flexible throughout Implementation Planning and Management is essential as changes of varying scale emerge. Allow teams to assess, adapt, and integrate necessary changes without losing sight of overall strategic goals.

Summary: Throughout this series, we’ve explored key criteria and tools to help you make informed, strategic capital investment decisions in an era of constrained funding. Even as capital pools begin to recover, demand for capital investments, driven by innovation and evolving market needs, will outpace available resources. Now more than ever, applying rigorous selection criteria and effective implementation strategies is crucial for maximizing impact. By leveraging the four key selection criteria, the implementation best practices, and the final concepts we’ve discussed, you can make the most of every capital investment—ensuring both resource stewardship and meaningful community impact.

Contact us at your convenience if we can be of any help or if you would like all seven parts of this series in a single article format.

Roberta Jelinek and Jeff Schilling

Welcome to a new year, filled with new opportunities.  And what better time to set the stage for success than at the beginning?  You’ve probably heard this kind of thinking in one or more quotes (e.g. Well begun is half done – Aristotle).  In fact, these first few weeks of the year really are ideal to engage in a couple of key activities that will create momentum and pay dividends through the months ahead.  Let’s run through a short list of ways to leverage this perfect timing.

Industry / Environmental Assessments: Over the years, I’ve come to believe “there’s an Association for everything.”  This belief stems from the fact that in nearly 30 years of Strategic Planning consulting, I’ve always been able to find and leverage valuable information from at least one National or State level Association relevant to my client.  And these Associations frequently publish an annual “Assessment” for their members containing a digest of the latest issues, trends, and emerging best practices in their industry or economic sector.  These Assessments are usually released in the month of – you guessed it – January (sometimes even in December).  Be sure to download the latest assessment from your relevant association(s) this month and review the content.  (Let me know if you want help finding them…I’ve had lots of practice).  Knowing the latest developments in your economic sector, and giving careful thought to the implications for your own organization’s Strategic Plan, is one of the most important ways to avoid obsolescence and embrace continuous planning.

Initiating Process Improvement Projects: Last month I included FY Milestone Reviews in my blog post of “December Tips for a Great New Year”.  Since December is often the end or midpoint of a Fiscal Year, review of performance data at that point can point to the need for improvement in one or more core processes.  You may have even laid the groundwork for just such an initiative by creating the team charter, measures of success, and critical team members, including those closest to the process.  Even if you didn’t, now is still a good time to make those preparations and then hit the start button. Without the time off and distractions of the holidays, team member focus will be higher and insightful.

Begin Work on Feasibility Studies and Business Plans: Last month I also described how the year end is the perfect time to review progress (and delays) related to your current Strategic Plan.  This includes checking the desired timing of important pre-work for capital investments, new service or product development, or any other major initiative that will require significant monetary funding. This pre-work sometimes involved preparing a Feasibility Study or Business Plan.  If you are at the point in your Plan where this pre-work should be getting underway, January is great timing, for reasons similar to initiating improvement projects.  It will be easier to garner the attention and obtain input from key subject matter experts, stakeholders, and internal resources (financial, HR, etc.), thereby avoiding delays in completing the Feasibility Study or Business Plan.

December is a great month for analysis and reflection…and even some preparation.  January is great month for starting the work.  Finding time for some key related activities in each month can go a long way to realizing success in this new year.

Have a great start to your 2025 and contact me with questions or if I can be of any help.

Jeff

As the calendar draws to a close it's a great time to look forward by looking back. What do I mean? You can use data from past performance to identify opportunities for future improvement. And none of this requires a lot of time, which probably sounds especially good during this holiday-infused, busy time of year. Let's take a closer look at several ways to “pay it forward” with your data.

FY Milestone Reviews: December is often the fiscal year midpoint or year-end for many organizations. We usually think of these milestones as a chance to look back and evaluate performance against targets, and check for trends, positive or negative. The data is definitely useful in that way, but the findings can be inspiration for new improvement initiatives.  In this sense, we use the insights gained from analysis of past performance as the starting point to plan one or more process improvement efforts designed to deliver better results in future.  An outside facilitator can ensure this work gets off to a great start with some careful planning, preparation, and unbiased facilitation.

Planning a Customer Knowledge Refresh: As the year draws to a close, give some thought to whether or not your customers’ needs and expectations may be changing. This may be the result of some new developments in your market or industry, but for many, the holidays are also a time to re-center and reflect.  That alone may lead to changing expectations or rearranged priorities.  This makes December a good time to consider, and begin planning for, a fresh round of customer research to take place early in the new year.  The beginning steps include formulating research objectives, selecting the best listening post (survey, interview, focus group, etc.), and taking early steps to create a data collection plan, all of which can be done with relatively little time, even less with a little help from someone with research experience.

Strategic Initiatives Prep: While you're taking a little time to think about your customers and their needs it makes sense to step back and evaluate your strategic plan against measures. Are the tactics achieving the anticipated results, or might it be time to re-evaluate any of them?  And how is it going with tactics implementation…are they on schedule?  Lastly, if your Strategic Plan calls for initiating a new service or product, the start of the new year (after the holiday rush) will be a much easier time to focus attention and resources.  Whether you need an expedited look at a new opportunity (Feasibility Study) or a more thorough and comprehensive path to follow (Business Plan), a little planning now will go a long way toward a strong start after the holidays.

These are just a few examples of how time spent in December can set you up for real progress in January, and beyond.

If I can be of any help in these closing weeks of the year don't hesitate to contact me.

Happy Holidays!

Jeff

In an era of limited capital, and slowly recovering margins, organizations must exercise more caution and scrutiny than ever in deciding what will be funded.  The changing landscapes of competition and consumer expectations can further complicate these decisions.  In this series, we describe four types of criteria, and then some additional considerations, all designed to to help you choose the projects most likely to succeed.  In the previous two posts, we introduced the first two of four important criteria: Strategic Alignment and Financial Feasibility.

Like Strategic Alignment, the third criterion, Organizational / System Impact, is based on a broader, overall view of the organization. It could be seen as a derivative or hybrid of strategic and financial views. However, it can add some additional helpful perspectives in evaluating a capital investment.

Growth and Sustainability: Each of these first two attributes have their own separate value and importance.  However, when they are considered together, they have the added value of taking a more complete, longer view. Which potential projects have growth - in volume, revenue, and/or market share - as likely short-term outcomes, thereby helping to restore depleted capital reserves?  While this is important, the possibility of organizational failure looms beyond the short term as competition responds, resource costs increase, or ever-changing consumer expectations outpace product/service improvements. These threats to long term sustainability suggest prioritizing projects that also have well-substantiated longer term growth projections, thereby contributing to organizational sustainability.

Personal Alignment: A second kind of sustainability is important to a growing number of customers who look beyond the goods or services received for a way in which they can personally connect with the providing organization. Some of these consumers are “shopping” for organizations that promote environmental sustainability, as evidenced through measures such as Carbon Footprint, LEED Certification, or Biodiversity Impact.  For others, environmental sustainability is only part of a broader commitment expressed in the form of an Environmental, Social, and Governance (ESG) Score. Still others look for organizations with clear tangible evidence of Fair Trade or Diversity, Equity, and Inclusion practices. In health care, successful achievement of objectives outlined in a Community Health Improvement Plan will be valued by those looking to have a substantive impact on the health of their local community. Capital projects including one or more points of personal alignment will resonate and engender loyalty.

Portfolio View: Will the investment maintain favorable share in a growing market (Star Quadrant) or possibly fuel growth by improving share in a growing market (Question Quadrant)?  How do you maintain items still providing high return but pay attention to product or service life cycles? The answers can be found by understanding where the capital investment fits in the traditional portfolio view (see Diagram). However, also take stock of how all other current services would be positioned in the portfolio.  Remember the best portfolio for achieving long term sustainability is one with investments balanced among the four quadrants. Your organization may be better served by a capital project fitting into an under-represented quadrant.

Patient Flow: Enhancing the patient’s experience is one of four critical components of the Quadruple Aim. Careful consideration should be given to the potential each capital project has to directly improve the customer experience. In addition, look for projects likely to improve the patient’s flow across the continuum of care. Will the project benefit the transitions to and from other services? Will it eliminate the need for additional service encounters or abbreviate the overall care experience by requiring fewer patient visits? Does it positively impact any other part of the patient’s journey? For example, Care/Case Management efforts are having significant beneficial impact on patient care and overall outcomes. This beneficial impact can be augmented through capital investments that, in and of themselves, make it easier for patients to transition from one care setting to the next.

Are you and your leadership team prepared to get the most out of your capital investments?  Let us know if you have any additional thoughts as this series unfolds, or if we can be of any help applying these ideas in your capital project review, selection, and implementation processes.

Roberta Jelinek and Jeff Schilling

(This is the 4^th of 7 posts in the series.  For the full article, contact either one of us.)

When capital is limited and the possible investment opportunities are numerous, how can organizations select the “best” ones for funding?

This is the current environment for most health and human service organizations.  The starting point might seem obvious – apply selection criteria and see which projects “score” the best!  With tight capital and lower margins, short-term financial impact is an obvious important criterion.  And, with little room for failure, another might have more to do with more with likelihood to succeed, especially in the long run.

Four types of criteria (see sidebar) when taken as a group, help us in both ways. One includes important aspects of financial feasibility, while the other three add other considerations that reflect how the role of health care (and health care providers) is evolving.  This broader definition of success mirrors the broader definition posed by concepts like the Balanced Scorecard and the Quadruple Aim.

Let’s explore the first one, Strategic Alignment, in more detail.  The best projects make sense strategically, and the following five elements are particularly important in the era of tight capital. The first two are well established ways to evaluate strategic alignment, while the remaining three reflect more recently developed points of strategic focus:

1. Fit with Vision / Goals: Preference would always be given to projects that have a clear, direct fit with the organization Vision and at least one of the Goals or Objectives. Projects that will help enable multiple Goals or Objectives deserve even more consideration.
2. Leverage Industry Trends: Since sound strategy should be influenced by developments in the broader industry, the best projects are those that leverage one or more industry trends, respond to one or more industry issues, or adapt one or more emerging industry best practices.
3. Community Benefit / Market Need: Sound strategy is also derived from a thorough market assessment. The best projects are those that would address one or more high priority needs identified in the Community Health Needs Assessment (CHNA), and even better, be instrumental in implementing one or more recommendations in the Community Health Improvement Plan (CHIP).
4. Customer Satisfaction: Capital projects that related to one or more Key Quality Characteristics (the dimensions of quality deemed most important by your customers) should receive extra consideration. Customer satisfaction is critical to patient loyalty (driving volume) and engagement (driving outcomes and referrals).
5. Health Equity Impact: The Covid19 Pandemic highlighted growing disparities in care access and health. Increasingly highlighted in thorough CHNAs, the best capital investments will address health inequity at some level.

Are you and your leadership team prepared to get the most out of your capital investments?  Let us know if you have any additional thoughts as this series unfolds, or if we can be of any help applying these ideas in your capital project review, selection, and implementation processes.

Roberta Jelinek  and  Jeff Schilling

(This is the 2nd of 7 posts in the series.  For the full article, contact either one of us.)