Thought of the Day – On Strength
Category Archives: Strengths
Thought of the Day: On Leadership
Is the Traditional Hospital Strategy Aging Out?
https://www.kaufmanhall.com/insights/thoughts-ken-kaufman/traditional-hospital-strategy-aging-out
On October 1, 1908, Ford produced the first Model T automobile. More than 60 years later, this affordable, mass produced, gasoline-powered car was still the top-selling automobile of all time. The Model T was geared to the broadest possible market, produced with the most efficient methods, and used the most modern technology—core elements of Ford’s business strategy and corporate DNA.
On April 25, 2018, almost 100 years later, Ford announced that it would stop making all U.S. internal-combustion sedans except the Mustang.
The world had changed. The Taurus, Fusion, and Fiesta were hardly exciting the imaginations of car-buyers. Ford no longer produced its U.S. cars efficiently enough to return a suitable profit. And the internal combustion technology was far from modern, with electronic vehicles widely seen as the future of automobiles.
Ford’s core strategy, and many of its accompanying products, had aged out. But not all was doom and gloom; Ford was doing big and profitable business in its line of pickups, SUVs, and -utility vehicles, led by the popular F-150.
It’s hard to imagine the level of strategic soul-searching and cultural angst that went into making the decision to stop producing the cars that had been the basis of Ford’s history. Yet, change was necessary for survival. At the time, Ford’s then-CEO Jim Hackett said, “We’re going to feed the healthy parts of our business and deal decisively with the areas that destroy value.”
So Ford took several bold steps designed to update—and in many ways upend—its strategy. The company got rid of large chunks of the portfolio that would not be relevant going forward, particularly internal combustion sedans. Ford also reorganized the company into separate divisions for electric and internal combustion vehicles. And Ford pivoted to the future by electrifying its fleet.
Ford did not fully abandon its existing strategies. Rather, it took what was relevant and successful, and added that to the future-focused pivot, placing the F-150 as the lead vehicle in its new electric fleet.
This need for strategic change happens to all large organizations. All organizations, including America’s hospitals and health systems, need to confront the fact that no strategic plan lasts forever.
Over the past 25-30 years, America’s hospitals and health systems based their strategies on the provision of a high-quality clinical care, largely in inpatient settings. Over time, physicians and clinics were brought into the fold to strengthen referral channels, but the strategic focus remained on driving volume to higher-acuity services.
More recently, the longstanding traditional patient-physician-referral relationship began to change. A smarter, internet-savvy, and self-interested patient population was looking for different aspects of service in different situations. In some cases, patients’ priority was convenience. In other cases, their priority was affordability. In other cases, patients began going to great lengths to find the best doctors for high-end care regardless of geographic location. In other cases, patients wanted care as close as their phone.
Around the country, hospitals and health systems have seen these environmental changes and adjusted their strategies, but for the most part only incrementally. The strategic focus remains centered on clinical quality delivered on campus, while convenience, access, value, affordability, efficiency, and many virtual innovations remain on the strategic periphery.
Health system leaders need to ask themselves whether their long-time, traditional strategy is beginning to age out. And if so, what is the “Ford strategy” for America’s health systems?
The questions asked and answered by Ford in the past five years are highly relevant to health system strategic planning at a time of changing demand, economic and clinical uncertainty, and rapid innovation. For example, as you view your organization in its entirety, what must be preserved from the existing structure and operations, and what operations, costs, and strategies must leave? And which competencies and capabilities must be woven into a going-forward structure?
America’s hospitals and health systems have an extremely long history—in some cases, longer than Ford’s. With that history comes a natural tendency to stick with deeply entrenched strategies. Now is the time for health systems to ask themselves, what is our Ford F150? And how do we “electrify” our strategic plan going forward?
Cartoon – Effective Leadership
Are You A Carrot, Egg or Coffee?
Granddaughter Says Life Is Too Hard. That’s When Grandma Pulls Out A Carrot, Egg & Coffee
As the story begins, a woman goes to visit her grandmother. She is stressed and frustrated by the way that her life has been going— in a way that many can relate. No sooner is one problem dealt with than another one rises in its place.
The woman tells her grandmother that she’s reaching the end of her rope and doesn’t know how she can go on.
Without a word, the grandmother goes to her kitchen, fills three pots with water, and puts the pots on the stove to boil. Once the water is bubbling away, the grandmother puts a few carrots in one pot, several eggs in the second pot, and ground coffee beans in the third.
After about twenty minutes or so, the grandmother turns off the heat and puts the contents of each pot in a bowl.
She then asks her granddaughter what she sees.
The answer seems obvious. “Carrots, eggs, and coffee,” the granddaughter replies.
The grandmother then tells her granddaughter to feel the softened, boiled carrots, to crack the hard-boiled egg and look at it, and to take a sip of the coffee.
Having done so, the granddaughter asks what it all means. The story continues:
“Her grandmother explained that each of these objects had faced the same adversity — boiling water — but each reacted differently.
“The carrot went in strong, hard and unrelenting. However, after being subjected to the boiling water, it softened and became weak. The egg had been fragile. Its thin outer shell had protected its liquid interior. But, after sitting through the boiling water, its inside became hardened.
“The ground coffee beans were unique, however. After they were in the boiling water, they had changed the water.”
The question for the granddaughter — and for the reader as well — is which one represents how you respond to adversity. Are you the egg? The carrots? Or the coffee?
“Think of this: Which am I? Am I the carrot that seems strong, but with pain and adversity? Do I wilt and become soft and lose my strength?
“Am I the egg that starts with a malleable heart, but changes with the heat? Did I have a fluid spirit, but after a death, a breakup, a financial hardship or some other trial, have I become hardened and stiff? Does my shell look the same, but on the inside am I bitter and tough with a stiff spirit and a hardened heart?
“Or am I like the coffee bean? The bean actually changes the hot water, the very circumstance that brings the pain. When the water gets hot, it releases the fragrance and flavor of your life. If you are like the bean, when things are at their worst, you get better and change the situation around you. When the hours are the darkest and trials are their greatest, do you elevate to another level?”
Of course, the question is posed not just as a way to examine how you respond to adversity now, but in order to learn how to adapt in the future.
We are not permanently carrots or eggs or coffee. Perhaps you have responded as an egg before. Perhaps you’re currently feeling a bit carrot-y. But that doesn’t mean that you can’t make a change.
Cartoon – My Particular Strength
THE NUMBER ONE FACTOR IN EMPLOYEE SATISFACTION
Respectful treatment of all employees at all levels was rated as very important by 67% of employees in 2015, making it the top contributor to overall employee job satisfaction for the second year in a row.
8 out of 10 employees who feel disrespected are less committed.
You could use carrots and sticks to energize performance but showing respect is simpler and less expensive.
How to show respect:
I was asked during an interview, “How do you respect your customers when all you need is for them to make a purchase?” My thoughts went beyond customers to respect in general. The word ‘compassion’ came to mind.
Compassion feels like respect.
#1. Show respect by acknowledging personal struggle. Some team members have wayward children, others have financial stress, still others struggle with their marriage.
When you learn of a person’s struggle:
- Resist the urge to solve struggles for people. You disrespect the struggle when you offer off-handed solutions.
- Listen with interest.
- Express compassion. “I’m sorry you’re going through this difficult situation.”
- Express empathy. “It must be tough to face this challenge.”
- Offer kindness. “I can’t pay your bills, but is there anything I can do to make today a little better?”
- Show appreciation. “I appreciate your contributions while you’re carrying these personal concerns.”
#2. Show respect by acknowledging responsibility. Employees carry important responsibilities. Leading is tough and often under-appreciated.
You show respect when you:
- Appreciate the burden, even if you don’t feel it yourself.
- Realize that easy for you may be heavy to another.
- Notice strengths. “You’re really good at … .”
- Acknowledge progress. “I believe you’re an important factor in the way our meetings are improving.”
Research adds 5 ways to show respect:
- Delegate important tasks.
- Receive advice.
- Provide freedom to pursue creative ideas.
- Take an interest in someone’s nonwork life.
- Stand with people during critical situations.
What makes you feel disrespected?
How might you show respect to team members? Leaders?
HENRY KOTULA 