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On being resourceful: the problem

David Hodes, Founder

Most organisations vastly underestimate how wasteful they are with their resources. We need to get much better at thinking systemically and acting systematically in the planning and performance of our work. To aspire to achieve lofty goals, we must lift our ability to properly measure and deeply understand the immutable laws of the supply of, and demand for, the human, material, information and financial resources that power our intentions.


This is Part 1 of a series. Read the other parts here:

Part 1: On being resourceful: the problem
Part 2: A quantum leap in resourcefulness

[Listen to audio version, read by David Hodes]

In my article on two-tier scheduling, I wrote about the demand side of the supply and demand equation. The schedule, based on the scope, determines the demand for resources; the challenge is then to find the Goldilocks value of the supply side. Here, I’d like to highlight the supply side. Overloading on resources not only costs money, it also creates complexity and confusion. How do we know what resources you have available to do the work demanded by your plans?

Let’s start with what I mean by resources in the first place. Any resource taxonomy must begin with identifying the human, material, information and financial resources—by type, in time and space—able to do the the work of turning intention into reality. Human resources can be broken down into the specific capabilities required in a given work environment. Material resources include parts, whether manufactured or bought, and equipment, whether owned or hired. Treating information as a class of resource is not so common. But when you properly manage all the terabytes of data you produce—and ask the right questions of this repository—you uncover a resource of strategic competitive advantage. And of course, money makes the world go round.

“All systems have constraints governing
the rate at which value is created”

At its root, the Theory of Constraints (TOC) is a means of understanding, at an operational level, the laws of supply and demand. Through the genius of its inventor, the late Eli Goldratt, we have come to better understand the fundamental axiom that all systems have constraints governing the rate at which value is created. In the language of the laws of supply and demand, if I have demand articulated by a project or production schedule and supply articulated by my resource availability, then I should be able to compute where my bottleneck is.

The domain of expertise where these calculations are done is called finite scheduling or, in the language of capability maturity models, quantitative work management. Whilst it sounds simple in theory, moving to a capability that allows the organisation to quantitatively express supply and demand is anything but. Why?

A taxonomy of capability
Let’s look at the three key stakeholders involved in resource management: Finance, HR and Operations, whether projects or production. Finance is interested in two fundamentals: how much are we going to spend and when are we going to spend it? Typically, they will control outgoings through purchase orders and are only really interested in matching the claim from the vendor with what has been agreed to contractually. HR is primarily concerned with recruitment, on-boarding and off-boarding, and ensuring that qualifications are valid for the scopes of work being undertaken.

Within Operations, the project teams need to know to a much finer level of resolution how many people of each capability are available on any given day, what they are capable of doing and how the work they have in front of them is going to be effectively supervised. Think about that for a moment. Firstly, project managers have to have a resource taxonomy which clearly defines, in terms which database queries can process, what discipline the person comes from, what skill type is required, with what level of specialisation, where they are in the hierarchy, what organisation they belong to, and where they are going to do the work.

Once you’ve decided on the taxonomy for the master data, it has to be applied to both the schedule side of the equation, such that it can articulate demand, and to the budgeted positions to articulate supply. Let’s suppose you’ve managed to sort out this non-trivial exercise, and are able to control the propensity of one set of people to call someone a ‘mechanical engineer’ and another to go for ‘engineer: mechanical’. What then? Well, when are they going to be available to do work? What rates will apply—for standard time, as well as overtime? What are their rosters and when will they have time off? What if they want to take a holiday or have reason to be away from the project because of some form of business travel? And how do you know they’re even there? Because you’re being billed for it?

On most of the assignments I’ve worked on there is an additional complicating factor: not all resources required for a given project come from a single organisation. Indeed, there are often several organisations, with overlapping and complementary skillsets. How do these all get reconciled to form a view of who is legitimately on board? Who is actually available to do the work? One company uses SAP, another PeopleSoft and yet another Oracle for their HR records.

None of these systems talks to each other and, besides, how they represent their resources in those ERP systems is of no use to a project manager trying to match them with the resource types used in their own schedules. Maybe they have a learning management system (LMS) which can identify people’s qualifications. But again, more often than not, these are set up to meet regulatory requirements and the structure of the data is not fit for the purpose of articulating aggregate supply by type, in buckets of time, in specific locations. And of course it’s very difficult in most scheduling tools to articulate a clear management hierarchy with managers, supervisors and team members all accounted for down to the level of the finite element of work.

So, all the information that’s fit to process ends up in the mother of all spreadsheets, with little to no control of data integrity and significant lag between what the records are showing and what’s actually happening in the field. Somewhere in all of this, a pitiful data clerk tries to keep up with the vendor claims, looks out for double-dipping and goes to extraordinary efforts to reconcile the plethora of rates and allowances agreed to in the contract.

Avoiding the thieves of value
There are three material consequences to not getting the resource mix right—that is, having too many or too few of any given resource type:

  1. You burn through more money than you need to
  2. You clog or starve the flow of work, and hence limit value
  3. You delay the achievement and reduce the magnitude of profit potential

Make no mistake, the consequence of not taking a disciplined approach to managing resources mindfully can be enormous. On one assignment I led, we were onto the fourth release and ninth Go Live of a multi-year implementation of a global ERP system. We thought we had our act together and that our resource and schedule management was best of breed. Indeed, in a previous release, an independent peer review gave us only a 3% chance of hitting our Go Live date—yet we got it done on time and well below budget.

However, when we plotted the load versus capacity for this fourth release, we looked at the graph (recreated below) and scratched our heads: with the tight discipline we applied to the planning and performing of work, how could we achieve a schedule density of only 34%? That is, for that class of resource who had no other work to perform other than what was in the Gantt chart, we were paying them for twice as much time as the schedule said we needed them—and that itself was planning to a prudent 80% of nameplate capacity. The difference between the 34% and the 80% utilisation amounted to anywhere between $100m and $200m, depending on how it was calculated.

Schedule density

To this day, I think the insights gained in that exercise are as significant as Taichi Ohno’s revelation that despite the machine-time spent on a part being measured in minutes, the inventory held of that part is often measured in months. How could such waste be tolerated, let alone sustained?

In my next article, we’ll explore the methods and tools required to effectively articulate the supply of resources so they can be measured to meet the demand of the work planned within your enterprise. This is an unglamorous undertaking but pays enormous dividends not only to your organisation’s productivity and financial health, but to all those working in the system. People can finally understand the goal and see upcoming tasks in a way that lets them work in flow without burning out.

How do you bring this together to do more with less? Find out in Part Two: A quantum leap in resourcefulness

If you want to learn more about how TOC can help you focus where it really counts, why not schedule a video call.

This is Part 1 of a series. Read the other parts here:

Part 1: On being resourceful: the problem
Part 2: A quantum leap in resourcefulness

____________________________

What’s next?

The change from standard thinking to Theory of Constraints (TOC) is both profound and exhilarating. To make it both fun and memorable, we use a business simulation we call The Right Stuff Workshop.

We’d love to run it with you. To learn more:

  • download the brochure (no email required)
  • schedule a call

    ____________________________

    Complicated computer code
    [Background photo: ‘Computer code’
    by Markus Spiske on Unsplash]

    “Progress cannot be generated when we are 

    satisfied with existing situations”
    —Taichi Ohno

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The healthcare professional: the hidden constraint in patient flow

Ensemble Administrator

Healthcare professionals are central to the patient’s progress from awareness of a therapy to successful long-term use. They identify risk, interpret evidence, diagnose conditions, discuss options, perform procedures, provide training and monitor outcomes.

Yet many medical device development programs treat healthcare professionals primarily as users to be trained or customers to be persuaded.

HCP-Centered Design takes a wider view. It examines the work healthcare professionals must perform, the system in which they perform it and the constraints that limit their ability to move suitable patients through the care pathway.

“If patient flow depends on a healthcare professional, that professional’s available capacity may determine how many patients ultimately receive the therapy.”

Healthcare professionals govern critical transitions

A medical device patient journey commonly depends on several healthcare professionals:

  • A primary care professional recognizes a problem or makes a referral.
  • A specialist assesses the patient and manages the disease pathway.
  • Diagnostic professionals generate and interpret evidence.
  • A managing physician supports authorization or reimbursement.
  • An interventional specialist confirms eligibility and performs a procedure.
  • Nurses, educators or allied health professionals help the patient adapt.
  • Follow-up teams monitor efficacy and coordinate adjustments.

Each professional governs a transition in the flow of patients.

If one transition lacks sufficient capacity, information or clarity, the whole pathway slows. More marketing, sales activity or production capacity will not compensate for a shortage of specialist time or a burdensome diagnostic process.

This is why HCP-Centered Design is not simply about making an interface easier to use. It is about enabling the system of care to perform.

The HCP works within a system

A healthcare professional’s work depends on information and actions supplied by others. They may rely on referrals, patient histories, pathology, imaging, electronic records, clinical guidelines and the availability of equipment or trained colleagues.

After reaching a decision, they may need to explain it, document it, arrange authorization, coordinate treatment and prepare the next person in the pathway.

A technically strong solution can still create difficulty if it:

  • Requires information that is hard to obtain
  • Interrupts established clinical workflows
  • Produces outputs that are difficult to interpret
  • Adds documentation without removing other work
  • Fails to connect with existing systems
  • Demands training that cannot be sustained
  • Transfers work or risk to another professional
  • Provides a result without clarifying the next action

The relevant design question is not merely, “Can the HCP use this product?”

It is, “Does this solution improve the HCP’s ability to complete important clinical work within the conditions in which care is actually delivered?”

Identify the real healthcare professional personas

“HCP” is not one persona.

A general practitioner, specialist, interventional physician, nurse, technician and clinical administrator encounter different stages of the pathway. Each has different responsibilities, authority, expertise and exposure to risk.

Even within a profession, context matters. An experienced specialist in a major hospital may approach the same task differently from a professional who encounters the condition infrequently or works without immediate specialist support.

Useful HCP personas distinguish factors that influence work:

  • Clinical responsibility and decision authority
  • Frequency of encountering the condition
  • Experience with the procedure or technology
  • Access to information and specialist support
  • Available time
  • Confidence in interpreting results
  • Responsibility for follow-up
  • Exposure to clinical, legal or financial risk

These personas clarify who performs each job and what support each person requires.

Map the HCP journey

The HCP journey often begins before the visible clinical procedure.

It may include receiving a referral, gathering information, forming an initial view, ordering investigations, interpreting results, deciding whether the patient is eligible, discussing treatment, obtaining authorization, preparing for the procedure, delivering care and arranging follow-up.

At each stage, ask:

  • What is the HCP trying to accomplish?
  • What information is required?
  • Where does the information come from?
  • What decision must be made?
  • What could cause delay or rework?
  • Who depends on this action?
  • What must happen before the patient can progress?

The resulting journey map should distinguish processing time from waiting time. A decision may require only minutes of specialist attention while patients wait weeks to access that attention.

This reveals the practical relationship between HCP capacity and patient flow.

Find the HCP constraint

The Theory of Constraints directs attention to the factor limiting the performance of the entire system.

In some pathways, the constraint may be the number of qualified interventional specialists. In others, it may be diagnostic capacity, physician confidence, authorization effort, operating room access or the time required to train patients.

The constraint may also be hidden inside the HCP’s working day.

A specialist supporting a therapy must still manage other clinical duties, administration, meetings, documentation and urgent cases. The question is not simply how many specialists exist. It is how much of their usable capacity is available for the activities upon which patient flow depends.

“The scarcest resource may not be the healthcare professional. It may be the few hours of focused capacity available for the critical work.”

Improvement away from this constraint can make performance worse. Sending more referrals to an already overloaded specialist increases the queue. Adding information may increase cognitive burden. Creating another approval may consume the capacity required to treat patients.

HCP-Centered Design seeks to protect and expand the capacity that governs flow.

Go to the clinical Gemba

Policies and procedures describe how clinical work should happen. Observation reveals how it actually happens.

Healthcare professionals routinely compensate for missing information, awkward interfaces and unreliable handovers. These workarounds may become so familiar that nobody reports them as problems.

Gemba research should examine:

  • How the HCP prepares
  • Which tools and information sources are used
  • What interrupts the work
  • Where the HCP waits or repeats activity
  • How uncertainty is communicated
  • What must be documented
  • How work passes to the next person
  • How the HCP recognizes that the job is complete

The purpose is not to judge the healthcare professional. It is to understand the system surrounding the work.

“A workaround is often evidence that the system has failed to support the person doing the work.”

Define the HCP’s job to be done

Healthcare professionals do not simply use devices. They use them to make progress in clinical work.

An HCP may need to identify risk, reach a confident diagnosis, select an intervention, perform a procedure safely, explain options, monitor progress or recognize deterioration.

A structured job map divides this work into eight stages:

  1. Define the intended clinical outcome.
  2. Locate the necessary information and resources.
  3. Prepare the patient, equipment and environment.
  4. Confirm readiness and choose between alternatives.
  5. Execute the clinical activity.
  6. Monitor its progress and results.
  7. Modify the approach when circumstances change.
  8. Conclude, document and prepare for subsequent care.

This wider view prevents the product team from concentrating exclusively on the procedure.

The greatest value may come from reducing preparation, improving decision confidence, clarifying an exception, simplifying documentation or improving the handover to follow-up care.

Convert experience into measurable outcomes

Comments such as “the interface is difficult” or “we need better information” indicate dissatisfaction, but do not provide sufficient direction for design.

They should be translated into measurable outcome statements, such as:

“Minimize the time required to identify which clinical information is missing before making a treatment decision.”

Or:

“Reduce the likelihood that a clinically significant change goes unrecognized between scheduled reviews.”

A broader population of healthcare professionals can then assess the importance of each outcome and their satisfaction with their current ability to achieve it.

Highly important and poorly satisfied outcomes provide a rational basis for prioritizing innovation.

“Adoption follows when a solution makes important clinical work safer, clearer or easier to complete.”

Apply FOCUS to HCP capacity

The five-step FOCUS process creates a practical improvement cycle.

Find the constraint. Determine which HCP activity or resource currently limits patient flow.

Optimise for it. Protect the constraint from avoidable work, missing information, interruptions and rework.

Collaborate around it. Align upstream and downstream teams so patients, information and resources arrive when required.

Uplift it. Add capacity, redesign responsibilities, improve technology or remove restrictive policies.

Start Again. Identify the new constraint once flow improves.

This approach allows the organization to distinguish activity from value. It also turns HCP engagement into an ongoing management discipline.

Connect HCP evidence with enterprise execution

HCP-Centered Design must connect clinical reality with patient needs, technology, regulation and business strategy.

A Value Management Office can help coordinate these perspectives across the product lifecycle. Its role is to ensure that projects, resources and stage-gate decisions remain connected to patient flow and business value.

The organization should be able to show:

  • Which HCP groups influence the pathway
  • What each group is trying to accomplish
  • How the work happens in practice
  • Which outcomes remain poorly served
  • Where HCP capacity constrains patient flow
  • How the proposed solution changes the wider care system
  • How improvement will be measured

The goal is not simply a device that healthcare professionals can operate. It is a solution they can confidently incorporate into care and a delivery system capable of getting that solution to more patients.


What’s next?

Use the HCP-Centered Design assessment to determine how well your organization understands clinical work, HCP capacity and the constraints governing patient flow.

The resulting evidence should guide product design, process improvement and investment toward better products, delivered faster, with more lives changed for good.

READ MORE

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Patient flow: the missing system in Patient Centered Design

Ensemble Administrator

Medical device companies devote enormous skill and investment to developing safe, effective products. Yet a technically successful device changes no lives while suitable patients remain unable to reach it.

Between a patient becoming aware of a therapy and receiving its intended benefit lies a pathway of referrals, consultations, diagnostics, approvals, procedures, training and follow-up. Every step consumes time. Between the steps, patients wait. At some points, they become confused, discouraged, ineligible or lost to the process.

Patient Centered Design must therefore address more than the design of the device. It must improve the performance of the entire system through which patients reach, receive and live successfully with the solution.

“A life-changing therapy changes no lives while patients remain trapped in the pathway leading to it.”

The patient journey is a flow system

A typical medical device journey may include:

  1. The patient becomes aware of a possible therapy.
  2. A primary care professional or specialist assesses the patient.
  3. Diagnostic work determines whether the therapy is appropriate.
  4. The patient secures authorization or reimbursement.
  5. An interventional specialist confirms and plans the procedure.
  6. The patient receives the device or therapy.
  7. The patient learns how to live with the solution.
  8. Follow-up identifies any necessary adjustments.
  9. Periodic reviews monitor longer-term efficacy.

Companies often manage these stages as separate functions. Marketing works on awareness. Medical affairs supports clinicians. Market access addresses reimbursement. Sales works with specialists. Clinical teams gather evidence. Training teams support adoption.

The patient, however, experiences one journey.

From the patient’s perspective, a delay between two organizational functions remains a delay. A repeated test remains repeated work. An unclear handover creates uncertainty regardless of which department owns it.

Patient Centered Design begins when the organization sees and manages this journey as a connected system.

Processing time tells only part of the story

Every step contains some necessary processing time. A consultation takes time. A diagnostic test takes time. An authorization must be assessed. A procedure must be performed.

The patient’s total lead time, however, also includes the waiting between these activities.

A consultation may take 30 minutes, but the patient could wait six weeks for it. A diagnostic test may take an hour, followed by another delay before a specialist reviews the result. Prior authorization may require little actual work while adding weeks to the pathway.

This distinction matters because organizations often improve processing time while leaving the larger queues untouched. Saving five minutes during an appointment produces little benefit if the patient waits months to reach it.

Patient Centered Design therefore asks:

  • How long does each activity take?
  • How long do patients wait between activities?
  • How many suitable patients enter each stage?
  • How many progress to the next stage?
  • Where and why do patients leave the pathway?
  • How much total time passes before the patient receives the solution?

The answers reveal the true performance of the patient system.

Find the constraint

Theory of Constraints teaches that the performance of any system is limited by a constraint. Improving a part of the system that is not constraining flow may create more activity without increasing results.

If diagnostic capacity is the constraint, generating more awareness may simply produce a longer queue for diagnosis. If specialist capacity is the constraint, accelerating authorization may move patients more quickly into another wait. If training after first use is inadequate, increasing procedures may produce poor experiences and avoidable follow-up demand.

“More activity at a non-constraint creates work in process. More capability at the constraint improves the system.”

The constraint is not always a physical resource. It may be a policy, an eligibility rule, missing evidence, a fragmented handover, an information delay or the cognitive burden placed on the patient.

The most important question is therefore not, “How do we improve every step?”

It is, “What currently limits the flow of suitable patients to successful use of the therapy?”

Understand why patients remain in or leave the flow

Numbers show where patients are lost. Patient research helps explain why.

Two patients with the same diagnosis may respond very differently. One may actively seek new treatment options. Another may delay action until symptoms become severe. A third may want help but lack confidence in navigating the healthcare system.

Meaningful patient segmentation considers characteristics that influence behavior:

  • The importance the person gives their health
  • Their confidence in dealing with healthcare professionals
  • Whether they act independently or need encouragement
  • Their comfort with technology
  • The pressures of work, family and daily life
  • Their ability to understand and act on clinical information
  • Their willingness and ability to pay
  • The outcomes they most want to achieve

These differences affect whether patients enter the pathway, remain engaged and successfully adopt the solution.

Go to the patient’s Gemba

The Gemba is the place where work actually happens. For patients, this includes the home, clinic, hospital and all the places where they manage their condition between formal encounters.

Interviews alone may miss important evidence. People normalize inconvenience, forget workarounds and simplify their past decisions. Observation allows the development team to see what patients actually do.

Good research combines three activities.

Observe. Watch how patients obtain information, prepare, use the solution and respond when something goes wrong.

Immerse. Understand the physical, emotional and practical conditions surrounding the experience.

Engage. Ask open questions that allow patients to describe their goals, fears and frustrations in their own language.

The purpose is to discover the patient’s reality before asking them to evaluate the organization’s preferred answer.

Understand the patient’s job to be done

Patients rarely want a medical device for its own sake. They want the progress it may enable.

They may want to recognize deterioration earlier, preserve independence, reduce pain, avoid repeated visits, return to work or prevent a disease from controlling daily life.

A useful job map examines eight recurring stages:

  1. Define what must be achieved.
  2. Locate the required information and resources.
  3. Prepare for the activity.
  4. Confirm readiness and choose between alternatives.
  5. Execute the activity.
  6. Monitor whether it is working.
  7. Modify the approach when circumstances change.
  8. Conclude or prepare for what follows.

This reveals opportunities beyond the immediate use of the device. The most valuable improvement may involve helping patients prepare, confirm readiness, recognize an exception or understand what happens next.

Turn patient experiences into evidence

Stories create understanding, but investment decisions require structured evidence.

Patient observations and comments should be converted into outcome statements that identify:

  • The desired direction of improvement
  • A measure of success
  • The object being controlled
  • The circumstances in which it matters

For example:

“Minimize the time required to recognize that my condition has changed sufficiently to require clinical help.”

Patients can then assess the importance of each outcome and their satisfaction with their current ability to achieve it.

Highly important and poorly satisfied outcomes represent genuine opportunities. This prevents teams from prioritizing attractive features that do not materially improve the patient’s life or progress through the pathway.

“Innovation becomes valuable when it improves an outcome that matters and remains poorly served.”

Apply the five-step FOCUS process

The Patient Centered Design pathway can be improved through a repeating discipline:

Find the constraint. Identify what currently limits patient flow or successful use.

Optimise for it. Make the best possible use of existing constraint capacity.

Collaborate around it. Align functions and partners so their actions support the constraint.

Uplift it. Add capability, remove restrictive policies or redesign the pathway.

Start Again. Once the constraint moves, identify and address the next limiting factor.

This prevents improvement from becoming a collection of disconnected initiatives. It directs scarce resources toward the factor that most strongly governs the result.

Patient Centered Design is an operating system

Patient insight should influence more than early product design. It should shape clinical evidence, regulatory strategy, reimbursement, manufacturing, education, market development and post-market support.

The organization should be able to show:

  • Which patients it intends to serve
  • What those patients are trying to accomplish
  • How the complete patient pathway operates
  • Where patients wait or leave the flow
  • Which outcomes remain poorly served
  • What currently constrains successful patient access
  • How the proposed solution improves the whole system

The goal is not simply to place the patient at the center of a diagram. It is to organize the enterprise around delivering better products faster, so that more lives can be changed for good.


What’s next?

Use the Patient Centered Design assessment to determine how well your organization understands its patient journeys, priority outcomes and constraints to patient flow.

The result should be more than another collection of patient opinions. It should provide evidence that directs strategy, investment and execution toward the changes that matter most.

READ MORE

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