Meet the Speakers Gary Strack Michael Helm Jon Lehman

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2 Meet the Speakers Gary Strack is President and Chief Executive Officer of Boca Raton Community Hospital. He has a very clear professional goal: to lead the team that will build upon the hospital's foundation of clinical excellence and compassionate care to create a 21st Century community hospital of distinction. Michael Helm is senior vice president of human resources for Sutter Health, a system of not-for-profit hospitals, physician organizations and other health care service providers that share resources and expertise to advance health care quality in more than 100 Northern California communities. Jon Lehman, Associate Dean for Health Care, Vanderbilt University, is responsible for the Health Care MBA program. Previously he served as Adjunct Assistant Professor of Management at Owen while continuing his responsibilities as President and CEO of Evolved Digital Systems, a leading provider of digital-based image and information management systems for the health care industry.

3 Leadership The art of mobilizing others to want to struggle for shared aspirations. (Kouzes & Posner, 1995)

4 Five Practices of Effective Leadership Challenge the process Inspire a shared vision Enable others to act Model the way Encourage The Heart

5 The Four Quadrants of Reality Individual Quadrant 1 Quadrant 2 Internal External Quadrant 3 Group/collective Quadrant 4 (Wilbur, 1996)

6 The Four Quadrants of Reality Individual Quadrant 1 Quadrant 2 Internal (I) (We) Beliefs Values Thoughts Feelings Culture Beliefs Actions Behavior Performance System of performance (It) External (It) Quadrant 3 Group/collective Quadrant 4 (Wilbur, 1996)

7 Linkage Between Effective Leadership and the Four Quadrants Quadrant 1 Individual Quadrant 2 Internal Encourage The Heart Inspire a shared vision Model the way Enable others to act Challenge the process External Quadrant 3 Group / Quadrant 4 collective (Strack, 2001)

8 Who is crazy? Am I crazy because I see the world as it could become? Or is the world crazy because it sees itself as it is? Don Quixote

9 Sutter Health Vital Statistics Serving more than 100 Northern California communities 26 acute care hospitals 3,400 physicians (seven physician medical foundations) 41,000 employees $6.3 billion in revenues $5.7 billion in assets Home health and hospice/long-term care services Medical research and medical education/training

10 Sutter Health Effectiveness Model Stakeholder requirements Sutter values Sutter vision and mission Sutter strategy Patients Care processes Support processes Governance Org structure Change/improvement process Leadership Culture External Environment Dashboard goals Leadership is critical to driving our transformation

11 Sutter Health Executive Age Demographics 1% 20% 53% 26% <

12 Key Measure of Success 100% Sutter Health Percent of Internal Executive Hires YTD 90% 80% 70% 60% Target 56% 69% 60% 50% 40% 30% 28% 20% 10% 0% 10% YTD Updated 05/16/2006

13 HealthLeaders Recognized Early Foundational Process 2003 management continuity process Top 50 executives Industrial psychologist Interview/assessment CEO/COO reviews

14 Current Process, Key Elements Succession planning and executive development as a routine business process (known as Performance Success and Development Process, or PSDP) Strategy execution linked with developing leaders, similar to GE s Crotonville model A grow vs. buy approach to executive recruitment and retention Supported by Sutter Health University Developed as driver of dashboard outcomes

15 What is PSDP? Performance Success and Development Process (PSDP) An online application service provider (SuccessFactors) Used for Performance management Objective management Succession planning Talent management

16 Current Process for Succession Planning Annual business process on the management calendar A bubble-up series of meetings Performance and development matrix (the 9-box grid) System CEO and board-level report-outs Position candidate slates serve as staffing plans for internal promotions

17 Succession Planning and Talent Management

18 SH University: Strategy Execution and Developing Leaders Leader performance Motivation Capacity Health Skill Launched early 2005, mostly repackaging of existing leadership development programs GE Crotonville experience in August 2005 refocused the role of the university Now strategy support and executive development

19 Our Leadership Standards and Cultural Transformation Full-Range Leadership Transformational leadership Transactional leadership Passive/avoidant leadership Management Strategic management: environmental scanning and strategy execution The Sutter Difference Leadership standards Performance Improvement Leads the application of the One Sutter Toolbox to the vital few Accelerates system wide change by giving up some local control for patientcentered, perfect care

20 In Closing The make/buy decision up-front is crucial Executive development and succession planning has to be a routine business process The model you use can vary. But having a model any model is a must Should not be left to chance

21 Health Care Is Headed For Change The value proposition of cost/quality/service must be reexamined Rising Costs- Percentage of GDP rising to nearly 20% Barriers to Quality- Errors cost $29B annually Not Consumer Focused- Inefficient and Ineffective No other industry offers as many dynamic and challenging career opportunities We need to prepare leaders who will shape and create the future of the industry

22 Advanced Health Care Degrees Masters in Public Health (NYU) Masters in Health Administration (Trinity) MBA with Health Care Major (Duke) Health Care MBA (Vanderbilt)

23 What Does it Take to Train the Next Generation of Health Care Leaders? A broad view of the industry A complete range of program offerings Innovative curriculum Partnership with HC industry Top Business School Top Medical Center Top Law School

24 Broad-Based View of the Health Care Industry PRODUCTS EQUIPMENT PHARMA SERVICES BIOTECH DEVICES

25 Complete Range of Health Care Educational Programs Board & C-Level Execs Senior Management Rising Stars MBA Clinically/ Technically Trained HC Strategy HC Leadership HC Innovation HC MBA HC Business Accelerator

26 Innovative Curriculum Immersion experiences to provide integrated clinical and business perspectives Broad introductory courses covering entire spectrum of health care industry Extensive required courses including policy, finance, and HCIT Numerous electives including innovation, entrepreneurship and biotech Independent studies in specialized areas Internships across all industry segments Hands-on strategy projects

27 Partnership with Health Care Industry Engages outstanding professionals from all phases of industry Guide direction of program Participate in the classroom and through Speaker Series Provide opportunities for internships and study groups Mentor and advise students

28 Vanderbilt Health Care Management Education Program Innovative, immersion-focused curriculum Real-world experience and teaching professionals in the classroom Exposure to HC companies and executives through internships, strategy projects and speaker series Access to Nashville HC industry resources and associations Faculty working on applied research and cutting-edge course material development Integration with resources across Vanderbilt University: Medical Center and Law School

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