Leadership continuity = business continuity

Transcription

1 Leadership continuity = business continuity Why identifying, evaluating and developing your internal talent is the most pressing need in healthcare HR. Presented by September 12, 2011

2 Presenters Judy West VP, Human Resources Stephanie Sloan, Ph.D. Senior Consultant

3 Our organizations Maine Medical Center is a nonprofit, private corporation governed by volunteer trustees from the communities we serve. MMC serves as a community hospital for the people of greater Portland, Maine and as the premier tertiary care center for northern New England. Hay Group is a global management consulting firm that works with leaders to transform strategy into reality and to help people and organizations realize their potential. In 2010, we advised 448 US healthcare organizations with challenges on pay, performance and talent.

4 No secret: it s an issue Healthcare is leading industry for exec turnover in 2011 UPI newswire, May 2011 Turnover amongst hospital CEOs was 16 percent in 2010 ACHE press release, March 2011 Hospital CEO turnover rate increases Healthcare Finance News, March 2011 Meet our new CEO. Oops, too late. H&HN Daily, April 2011

5 On healthcare executive turnover: Still too high, says ACHE president Thomas Dolan. Now, more than ever, hospitals need to ensure they have the appropriate succession plans in place to minimize any potential negative impact of unexpected turnover. It is critical that hospital boards and CEOs work together to this end. Source: ACHE press release, March 14, 2011

6 HR as strategic partner Dynamic transformation in healthcare will happen through people, not policy Everyone is in the same boat, and we must be facing the same direction to progress downstream You are the one your hospital is turning to for help, even if they don t know it yet

7 Biggest assets, biggest issues Almost every organization s biggest asset is also their biggest expense: people. Minimizing disruptions to assets can help improve quality, integrity and performance. Nursing shortage Physician shortage Physician and nursing leader shortage Executive turnover Clinical IT shortage Baby-boomer retirements

8 Bench strength

9 What are we trying to accomplish? Do we have the right talent pipeline for mission-critical roles? What is our culture? What attracts people to Maine Medical Center? Why are people leaving when they do? Is it enough to stop at succession planning for the c- suite? What is our expected turnover? Do we have people ready to take on roles for both planned retirements and unexpected losses?

10 Setting the stage All leaders were assessed and evaluated to establish a starting point for development plans All leaders asked to identify a sudden-loss leader Development tool kits were created to show others how to discuss a continuity plan Senior management established a commitment to conduct an annual system talent review

11 Priority 1: Identifying sudden-loss leaders AKA The winning the scenario The hit by a scenario

12 Handling the truth Maine Medical Center will lose 50 percent of their directors over the next 10 years to retirements alone. Do we have people ready to move into missioncritical leadership roles? Do we have the right people in leadership roles now? Do we have the right expectations of our leaders now and for unknown, future scenarios?

13 Leadership continuity process Training & Development Mentoring Experience the Next Level Talent Pool Gap Analysis Identify Interim Leader Today

14 A leadership continuity plan

15 The talent progression Hire solid talent Development programs Self-guided development Career aspirations Pathing plans Strategic projects Giving back Being a mentor Growing talent beneath Our retention is influenced through culture, not caveats

16 Next steps Identify paths Development Communication plan Interim Leaders Identify fast track needs Curriculum Identify interest Mentoring Measurement tools High Potential Leaders Development

17 Addressing risks and roadblocks Managers hiding high potential talent for fear of losing their team Investing time and money in a hi-po to develop that the organization does not see as a future leader Losing developed talent (including time and money to develop them) to competition

18 Strength in numbers 33 senior leaders have a Leadership Continuity Plan consisting of a descriptive outline for their interim leader s development/mentoring needs, as well as a detailed plan describing their personal commitment to leadership growth 55 directors have completed their Leadership Continuity plans 55 additional directors are in the process of completing their Leadership Continuity plans

19 The pond gets bigger Any guesses how many potential leaders will be evaluated at Maine Medical Center?

20 The pond gets bigger 450

21 Changing the paradigm Leaders CAN advance their careers inside a single health system Promotions can be used as developmental opportunities Breaking down silos in design and mindset Learning from employee opinion surveys: they want to be developed and grow internally

22 Spreading through the system Bench strength of talent needed not only at MMC, but throughout the system to better maintain culture Five hospitals, a physician practice network, a home health service, a lab network and a petting zoo (no petting zoo, just seeing if you were awake ) 15,000 total employees who could be potential leaders

23 We cannot afford to fail Stakes are too high for Maine Medical Center and for a community dependent upon us We need visionary leaders who can see us through We cannot afford to gamble on winning the leadership shortage shuffle

24 Per cent Great leadership creates business results Hay Group s 2010 Best Companies for Leadership study 20 Top 20 Best Companies for Leadership vs S&P Top 20 S&P (5.0) (2.17) (0.17) (0.76) (10.0) (6.77) 1 year total return 3 year total return 5 year total return 10 year total return

25 What organizations value most in leaders Hay Group s 2010 Best Companies for Leadership study Global top 20 BCL vs all others Strategic thinking Execution Ethics Inspiring leadership Technical competence/expertise Decision making Teamwork Capacity to learn Social responsibility Top 20 All others Per cent of respondents

26 Leadership continuity = business continuity Business challenges Visionary leaders

27 Leadership continuity = business continuity Questions for Judy or Stephanie? Stephanie Sloan will also be available to speak from 1:00-2:00 pm today at Hay Group s booth (#219) in the exhibit hall.