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Patrick Sulzberger, CPA, CHC

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Patrick Sulzberger, CPA, CHC

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My connection to strategic positioning and change readiness

My connection to YOU

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We are resource to help our clients position themselves for

sustainable success in a rapidly changing environment.

www.tsphealthcare.com

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The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic

Peter Drucker

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Rapidly changing environment

Is change the only constant in business?

What should be our focus?

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Rapid change creates chaos

Traits for consistent success

◦Culture of “change readiness”

◦Goal alignment among stakeholders

◦Well developed Strategic Plan

◦ Leadership at all levels

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◦ Respond to changes in a way that minimize risk

◦Create advantages

◦ Facilitate sustainable success (key)

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Behaviors that are rewarded or punished

What our team members think and believe

o Values that establish the norm for

behavior

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Currently, do our behavioral “norms” (all levels of the organization)

◦ Allow us to respond to change constructively and timely to minimize risk

◦ Create advantages for the organization (and our customers)

◦ Provide a foundation for sustainable success

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Policy ◦ Statement about our intent

“Employees are key stakeholders, and their feedback is vital to our success”

“Customer service is #1 priority”

Cultural aspect◦ What actually occurs routinely?

◦ Which team members are rewarded?

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Can the CEO or “C-Suite” alone position the organization for sustainable success in a rapidly changing environment?

◦ Who must predominantly execute change successfully?

Pervasive Hierarchal

C Suite

Managers

Staff

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Culture

C suite

Board

Staff

Managers

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C = D x V x F > R

C = Change

D = Dissatisfaction with the current state

V = (Positive) vision for the future

F = First concrete steps toward the vision

R = Resistance to change

Source: Richard Beckhard and David Gleicher, refined by Kathie Dannemiller

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An individual’s perception of the organization’s readiness for change can impact their involvement in implementing change initiatives

Fear of failure creates a fear of learning, which parallels a fear of change

◦ Many staff members may believe change implies a loss of the security that goes with a specific job

Source: (organizational readiness for change: an empirical investigation – journal of personal selling and sales management)

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Leadership’s role

◦ Communicate the need to become change ready

◦ Communicate the vital role the team plays in developing and executing the strategy

◦ Demonstrate commitment (change is tough)

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Tendency of leadership to look for quick fixes in lieu of taking a longer term perspective**

Implementing piece-meal solutions in lieu of a systems perspective**

Does our culture reward intelligent risk taking?

** Source: (organizational readiness for change: an empirical investigation – journal of personal selling and sales management)

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Detrimental Change

Change for the sake of change

Change based primarily upon fear

Constructive Change

Decisions are made from relevant facts

Communication across all levels

Recognize & acknowledge

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Change for the sake of change

If it ain’t broke don’t fix it

Culture

C suite

Board

Staff

Managers

Reactive

Resistance

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Strategic Consideration

Can we execute on the change?

Do we need help?

Communication across the organization should answer these key questions

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A first step toward change readiness – assess your team’s beliefs (Board through staff)

Reconcile perceptions

Subjective process – but important

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Barriers to success

Facilitators to success

Operational

Strategic

Organizational Readiness

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Different questions may apply to different groups

◦ Board vs. management vs. staff

Scale 1 – 10, and include “don’t know” as an option

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Sample operations question

◦ Departments do not operate in “silos,” rather, operational decisions are made in consideration of the organization overall

Managers, staff

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Our physicians / providers believe they have a leadership role in positioning our organization for success under ACA payment reform

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Sample Board Governance question

◦ The Board understands its fiduciary requirements as outlined by the OIG with regard to quality, patient safety and compliance

◦ The Board believes it has the resources necessary to assist in preparing the organization for the future

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Compute an average score for each question

Pay attention to variance between high and low scores (perception gap)

Share results with stakeholders and discuss next steps

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A quick and fun exercise you can perform with your staff

What is our initial perspective about change?

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Leadership is not a position on the organization chart, it’s an attitude (i.e. some leaders are not decision-makers)

Ratio of leaders required during times of rapid change

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Leadership:

• Presses for change

• Deals with change

Management:

• Promotes Stability

• Deals with Complexity

Leadership Actions

• Setting Direction

• Aligning

• Communicating

• Motivating and Inspiring

Management Actions

• Planning

• Organizing & Staffing

• Problem Solving

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Organizations follow where their cultures lead, not the other way around.

Are your leaders equipped to positively influence your organizational culture?

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What about your culture?

◦ Allow us to respond to change constructively and timely to minimize risk

◦ Create advantages for the organization (and our customers)

◦ Provide a foundation for sustainable success

A leader has the right to be beaten, but never the right to be surprised

Napoleon

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[email protected]

888.885.1977

www.tsphealthcare.com

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