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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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Three major external forces are impacting the health care industry today

◦ Legislative / Regulatory

◦Demographics (aging population)

◦ Federal and State Deficits

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• “A critical part of HHS’s strategy is to give the American public the means to make more informed choices to ensure optimal health care by improving transparency regarding the quality and costs of health services, better coordinating care, fostering patient-centered care, and promoting consumers’ participation in their health and health care.”

(source: Department of Health and Human Services)

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Better

Health

Better

Value

Better

Care

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Primary Care Transformation

Episodes of Care

Long Term Services & Support

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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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A quick and fun exercise you can perform with your staff

What is our initial perspective about change?

◦ Respond to changes in a way that minimize risk

◦ Create advantages

◦ Facilitate sustainable success

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Values that establish the norm for

behavior

Behaviors that are rewarded or punished

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Currently, do our behavioral “norms”

◦ 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?

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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

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Recognize & acknowledge

Decisions are made from relevant facts

Communication across all levels

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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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Leadership is not a position on the organization chart

Ratio of leaders required during times of rapid change

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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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LinkedIn https://www.linkedin.com/company/total-solution-

partners

Facebook https://www.facebook.com/TotalSolutionPartners

Twitterhttps://twitter.com/TSPHealthcare

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psulzberger@tsphealthcare.com

888.885.1977

www.tsphealthcare.com

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