Case Study: Performance Management at Intermountain Healthcare

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Kuan-Chung (Bill) Wu
HPM540: Professor Kamke
HPM540: Case Study 3: Performance Management at Intermountain Healthcare

1. What is your assessment of the Performance Management system developed at Intermountain Healthcare?
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The Performance Management (PM) system developed by Intermountain has become a model for many healthcare organizations. Intermountain’s PM system includes the following elements: 1) Identifying six most important performance criteria, 2) Developing goals for different groups within the organization, and 3) implementing the goals by creating an incentive compensation scheme. This PM system design has proven to be effective in many perspective, ranging from individual staff to administration and to the organization as a whole. First and most importantly, this PM system aligns Intermoutain’s mission and values/commitments to its employees and their performances. Their employees and administration do not just talk about their values, they live those values – committing to best practice with quality and accountability. Secondly, this PM system is effective in regards of beneficial and useful as development tool and administrative tool. The system not only allows administration to accountably designed, implemented, reached, and evaluated the goals for different groups in the organization, but also allows employees to engaged and contribute organizational goals by developing their career and earning incentives. As a result, different groups in the organization were able to remain focused on accomplishing all the goals as a whole team. Lastly, most employees in Intermountain had positive and fair views for the PM system. For example, employees in Intermountain expressed embarrassment, rather than complaints of not getting incentives, when they did not reach a certain objective, even it was missed by less than 1%. Lastly, this PM system allowed administration and management team at Intermountain to effectively and accurately measure employee...
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