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3 Best Practices for Measuring Digital Transformation KPIs

With digital transformation and the consumer experience top of mind for most healthcare organizations these days, it may be surprising to learn that measurement and key performance indicators that demonstrate the value of digital programs and investments are often lacking. In a recent Gartner survey on digital transformation, only about half of the CEOs Gartner surveyed indicated KPIs were in place to measure digital success.*

From my experience, this appears to stem from the fact that digital marketing, experience and information technology executives have yet to focus on aligning KPIs for digital transformation and experience initiatives with the overarching organization or service line goals and objectives – tying the value of digital transformation to the value realized for the business and clinical enterprise overall.

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Ideally, performance measurement and KPIs are built into the digital strategy, when the vision and aspirations are first established. This ensures the digital transformation initiatives align with the broader organizational objectives, thus demonstrating not only the progress being made as transformation evolves, but also the ability to link and measure the impact of specific initiatives against the stated organizational goals, such as growth and volume, utilization, access, cost reduction, and improved patient and member satisfaction.

Gartner’s Proctor suggested digital KPIs should begin by targeting two broad categories:

  1. Progress toward digitizing the current business model
  2. New revenue sources resulting from new digital business models

While there is no perfect formula for the development of meaningful KPIs, there are some best practices:

  1. Assess and quantify the benefits of each digital initiative, working with executive leadership from across the organization to do so. Understand the outcomes they expect to achieve.
  2. Establish the KPIs using specific reference to the value each digital initiative is expected to drive. For example, the KPI for Online Patient Scheduling might measure the expected to actual number of online appointments, against the corresponding expected increase in patient volume, or perhaps physician wRVUs, patient member satisfaction or net promotor scores.
  3. Make sure to include KPIs that measure the overall progress of the digital transformation program, and establish a scorecard that is visible to the rest of the organization.

Digital transformation is key strategy for most organizations, and given how competitive the healthcare landscape is these days, the stakes are often high. Following these basic principles and engaging with business executives and clinical leaders will ensure the focus is on the right initiatives and the investments are achieving the desired outcomes.

*Digital Business KPIs: Defining and Measuring Success, Gartner, James Michael Andersen and Paul E. Proctor 2017

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Juliet Silver, General Manager, Corporate Operations, EMEA

Juliet has over 20 years of executive leadership in management consulting, IT, finance, and operations. She provides thought leadership backed by extensive experience in all strategy phases, including initial business visioning, strategy and roadmaps, ROI justification, and program execution. She leverages her cross-industry experience and management consulting and technology experience to support European clients in realizing their vision.

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