Newsletter

Chairman's Message

Hopefully, everyone had a holly, jolly time over the holidays. I managed to do my share of celebrating (naturally!), and realized that it takes some skill and planning to enjoy oneself at parties these days. Before we get to the serious stuff today, I’d like to take a moment to share some dinner party tips fresh from the recent holiday season:

1. Arrive late – never before 8:00 p.m. And remember, a dinner party is like a marathon; you need to be prepared, so enjoy plenty of munchies and libations beforehand.
   
   
2. Leave late – opting out because of work the next day is for wimps and malcontents. But if it’s critical that you show up the next day, refer to my recent best seller – Positive Body Language for the Comatose.
   
   
3. Ensure (and this is vital) at the end of each dinner party that there are more empty wine bottles than guests.

Finally, keep the chitchat suitably shallow and varied. Admirable topics include the latest neighborhood gossip, a juicy political scandal and the price of hogs. Tally Ho!

Succession Planning Success: Growing From Within

About 10 years ago, I began to notice more senior-level turnover at hospitals. To be sure, there were always changes of the guard, but they were infrequent and almost exclusively the consequence of retirement, or an executive making his way to that Great Hospital In The Sky. Times have changed, and hospital CEO turnover is now deemed ”high” according to the American College of Healthcare Executives (ACHE), which reports a rate of 14% - 18% per year. And while many departures these days are voluntary, a fair number of them occur at the direction of an unhappy Board of Directors.

I promise not to bore you with too many statistics, but you must know that according to the ACHE, the average stay for a CEO at a hospital is 5.5 years. And once a CEO departs, many top-level managers (Vice Presidents, Chief Financial Officers, Chief Nursing Officers, Chief Operating Officers, etc.) follow him/her out the door within a year.

This all leads to the point of this month’s newsletter: now more than ever, succession planning is essential to an institution’s success. Savvy organizations understand that putting a thoughtful plan in place, that might include several tiers of management, can serve three purposes:

• Allows for smooth transitions when leaders leave. This, of course, is the reason for a succession plan, but including multiple layers makes transitions less disruptive throughout an organization, not just at the highest level.
  
  
• Ensures institutional knowledge will be preserved. People don’t just leave an empty seat when they move on. Often, an enormous amount of information about the organization, position, clients, vendors, customers, etc., follows them out the door.
  
  
• Becomes an effective retention tool. People are motivated to stay at an organization that promotes talent from within. In order to stay engaged, employees must understand their career paths, be recognized for their accomplishments, and have an opportunity to advance.
  

Putting a succession plan in place is neither easy nor a quick fix. It takes time and commitment to manage a plan through to the point where results are realized. Below are a few questions to ask yourself as you and your team develop a succession plan:

• Am I, as a top executive, committed to this process?
  The major reason succession planning fails is because of apathy at the C-level. Let your management team know that you are committed to the process and are willing to participate in developing and supporting those in the pipeline.
  
  
• What does our current pool of talent look like?
  Take a good look at your talent pool, and then a closer look. If you are trying to cultivate a more diverse workforce, this is an excellent opportunity to develop women and minorities and move them into the upper ranks.
  
  
• What about all the gaps in talent that exist now?
  There are at least two solutions: 1) external recruiting, and 2) in-house training and development. It’s a good idea to develop an outside hiring strategy to parallel the succession plan. Developing existing staff through in-house training programs or outside courses and advanced degree programs are all ways to maintain a base of institutional knowledge and home grown talent.
  
  
• How will we know if the plan works?
  Establish metrics at the onset. As transitions happen and people move around, share the data and the return on your investment with management. Celebrate the organic growth you are fostering.
  

In summary, while I recommend you start parties late, it’s never too early to put a succession plan in place. Preparation is critical to the success of just about any venture you can think of. Making sure your institution is prepared for expected and unexpected departures is your responsibility. A solid plan, started earlier rather than later, will make most transitions seamless under your watch.

Shameless Self Promotion

Some of our current engagements include:

Franklin Medical Center – Nurse Manager, ED
St Vincent Healthcare – Director, Medical/Surgical Nursing
Cape Cod Hospital – Chief Nursing Officer
Ellis Hospital – Director of Nursing School
Emerson Hospital – Director of Facilities
Rhode Island Hospital – Director TICU & SICU

Leadership Quote of the Month

“Forgiveness is easier to get than permission.”

~ Anonymous