Introduction
The pandemic has brought sharp focus on the Senior Care Industry, especially Long-term Care. In Ontario, the recent change in the Long-term Care Act to new Fixing Long-Term Care Act, 2021 has brought the risk of operating a home into sharp focus with changes to the inspection processes and fines that can be levied against a non-compliant home. More than ever, homes need to be able to see operations at a glance and finances need to be monitored carefully to ensure that spending is in line with the government funding and care goals.
What is Digital Transformation
Digital transformation requires a high degree of support from top management and the full commitment of the organization. To transform is to refrain from old ways and adopt others, ultimately leaving your comfort zone. If you do not see transformation in those who lead your organization, you will not believe it, and it will not work. A leader who takes notes with a pen and paper and asks for e-mails to be printed out will not be able to lead a digital transformation process, however much authority they have.
Cultural change management and transformation are key enablers of success. Change is scary and the fear of the unknown is real. In the January 2022 issue of Harvard Business Review, authors Leeward, Mani and Sheppard “Reinventing Your Leadership Team” discuss an approach to building a leadership team that is up to the challenge of Digital Transformation. The four key components are:
Moving towards Digital Transformation
After developing your team to manage the Digital Transformation, begin by differentiating between strategic and non-strategic processes and assets. What can you do to move non-value-added processes to standard software solutions? Rely on partners to provide the innovation and speed you need. Customize where you need to and recognize out-of-the-box software will help you move faster than highly customized software.
The best place is to start with your accounting software. Does it use the old Chart of Accounts which means you have a thousand accounts and every time the ministry provides new funding, a new account needs to be added to the chart and to every cost centre. What about your Financial Reporting – is it flexible; can it easily handle the changing report needs of funders, management, and other stakeholders. Perhaps you need a new solution that accumulates your data in a much more flexible way. Maybe you need Dimensions.
What is a “Dimensional Accounting” System?
Dimensional accounting replaces the different account segments and just retains the natural account. To record different information for each segment, you just set up a dimension for each. Then, you simply tag each entry with the appropriate dimension. This creates a smaller account list that is easier to maintain and report against. A modern Accounting System allows for appropriate Dimensions to be textual such as location, department, or fund name rather than just a number.
The Benefits
This simplified structure provides numerous benefits. Consider four.
Instead of spending days preparing reports, wouldn’t you like an accounting system that allows your Finance team to provide a real-time view of where the company stands within minutes? View performance from any angle you wish. Create reports using simple drop-down lists. Filter, group and organize your data at the request of any stakeholder.
Conclusion
Whether you accept change or not, digital transformation is the future of senior living facilities. Adapting to technological changes can propel management teams within senior living facilities to better outcomes. Providing the latest tools to organize, manage, and protect your organization is how facilities can stay innovative and in control of the operation and minimize risks.