Oklahoma Blood Inst. - 700 people,  $70mm

“I think we are the best managed we have ever been in the history of OBI. We are really changing the whole culture, by changing the way we look at how we operate as an organization. We haven't compromised the integrity of the health care and medical side, while going after the business acumen that this company has always needed. Its really commendable how everyone has pitched in and pulled together over the last year”.

Mark Patterson, VP Finance & Corporate Development, at Huddle # 8, 2/18/10

In late 2007, Dr. Andrew Gin, MD, a neurologist in Oklahoma, was asked by the Oklahoma City University Business School if he would consider teaching a class for Health Care Professionals for their Executive MBA. After choosing Chuck Kremer’s Managing by the Numbers as his text book, he contacted PMI about using our software in the class, and conducted due diligence on the methodologies PMI uses to apply its Financial Dashboard and Scoreboard. Completing that, Dr. Gin introduced PMI to The Oklahoma Blood Institute’s CEO and CFO. OBI is a decades-old, successful $50m+/year mission-driven organization of 700 staff, 800 Volunteers and thousands of donors, producing up to 150k blood units/year.  

Ten years of OBI sales (light brown), Operating cash flow (green), and Profit (dark brown).
Below the line shows a profit or operating cash flow loss
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After a decade of steady growth to well over $50 million, with some early scaling challenges, in 2008, OBI’s decision team could see that the issues in the industry as a whole were catching up with them. Randy Stark, CFO, who had been tasked with spearheading a ‘Metrics-driven Culture Change’, decided to use PMI’s Integral Operations Finance approach to meet the challenge.

 A core PMI secret is building a ‘Sacred Glossary’ of agreed-upon terms and numbers, all focused through a total system set of Key Performance Indicators that the key people actually craft over time in teams responsible for driving operational changes into financial results. In Huddle #2, as the Data Collection Teams were reporting on their initial findings, an idea bubbled up in the Performance Management Group Huddle. 

What emerged in a few minutes clarified an activity that was part of standard operating procedure that was not accomplishing any required purpose, had no value-add for any external or internal customers, and was taking needed resources. Within another few minutes, different folks chimed in so that all the pieces fell into place to structure and implement a change. This was coordinated for execution in the following couple of weeks, with neither the CFO or CEO needing to do anything during the process, other than watch the whole thing happen in front of their eyes. 

The savings over the next 12 months? Potentially in the neighborhood of $250,000.

“This is a good example of fulfilling the promise for why we are implementing the PMI Discovery Process” – OBI’s CEO, Dr. John Armitage, MD

"Given our fiscal challenges when OBI started implementing Agile Accounting 3.0, when the board heard reports of the more than doubling of both profit and cash reserves 18 months after the huddles launched, I knew that our organization development initiatives like lean manufacturing change initiatives, information technology conversions, strategic planning and leadership development had combined well with PMI's tools, self-auditing skill-building and highly effective monthly meeting structure."  – A. Gin, MD, OBI Executive Committee of the Board.

OBI Executive Committee Member letter can be read here.

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