Going forward, PDI will monitor progress through a variety of measures: Future Measures for Monitoring Success • Tracking progress against the baseline data gathered at the beginning of
Trang 1customer who participated in the customer focus conferences has inquired how they might run a conference for their own customers And the PDI distributor network has expressed similar interest
Although it is difficult to quantify the impact, improving business results are clearly related to employee and managerial actions Sales are running below planned growth, due to the recession in the North American manufac-turing economy But operating profit is on or close to plan Employees are show-ing evidence of understandshow-ing the business realities and are committed to doshow-ing their part to control costs, reduce customer turnover, and win new business Going forward, PDI will monitor progress through a variety of measures:
Future Measures for Monitoring Success
• Tracking progress against the baseline data gathered at the beginning of implementation
• Monitoring employee survey results
• Tracking the adoption of new customer contact behaviors via customer scorecards
• Following the turnover rate among employees, which is expected to drop as a result of changed management practices
• Monitoring the rate of customer churn, which is expected to slow as new customer contact behaviors build stronger ties to customers
• Measuring the new customer win rate, also expected to improve as new product and service offerings, coupled with differentiating actions and attitudes, create a more compelling offering
LESSONS RELEARNED
Someone once observed that “experience is recognizing the same mistake when you make it again.” PDI’s experience with large-scale change has proven again some familiar truths for managing change What is noteworthy about PDI’s change initiative is how it is engaging its people as a source of sustainable competitive advantage Market advantage gained through technology, product functionality, geographic presence, or financial positioning is easily matched by competitors in ever-decreasing cycle times The one competitive advantage that is difficult to duplicate is that gained through people Wayne Yakich and his team of senior man-agers realized that the packaged gas business is a people business In order to turn around a stalled strategic rollup plan, he needed the commitment of all 750 man-agers and 3500+ employees at 435 locations Rather than making the same mis-take as his predecessors, Yakich opted for a different approach He knew that a business strategy based on different products and services, while desirable, could
Trang 2eventually be duplicated, but that a leadership strategy that differentiated employ-ees could complement the business strategy and quite possibly add a sustainable advantage that would translate into market leadership
NOTES
1 Kocourek, Paul F., Chung, Steven Y., and McKenna, Matthew G Strategic Rollups:
Overhauling the Multi-Merger Machine (Strategy Publication Issue 19) New York:
Booz Allen Hamilton Available at http://www.strategy-business.com/export/
export.php?article_id=16858
2 See “Executive vs Leaders: Is There a Difference,” Rich Rardin, Manchester
Review, Spring/Summer, 1999.
3 Four-step leadership strategy design tool Step 1: Identify those customer contact behaviors that would truly differentiate PDI employees from all others suppliers Step 2: Identify current and desired leadership philosophy within PDI using the leadership philosophy map Step 3: Make explicit the new leadership values that are implicit in the desired leadership philosophy Step 4: Redesign current man-agement practices to reflect the new leadership values These manman-agement prac-tices, when implemented, will give substance to the new values, which in turn will reflect the new leadership philosophy, which when followed will reinforce the new customer contact behaviors.
4 PDI’s leadership philosophy map reflects the current leadership philosophy among managers as well as their desired one (see Exhibit 15.2) The definitions to each
of the four parts follow:
Mental Model—the culturally accepted understanding of the leader’s role Motive—the driving force behind the leader’s actions
Manner—the way in which employees are treated Methods—the overall characterization of the processes or procedures leaders use
5 Leadership culture assessment model and tool adapted from Roger Harrison and
Herb Stokes, Diagnosing Organizational Culture (San Francisco: Jossey-Bass, 1992).
6 Process steps for conducting customer focus conferences:
Preconference
• Launch employee participant nomination process: three to four people from each of four to five customer contact groups
• Invite local customers to participate
• Prepare local meeting space and related logistics
Conference Design
• Welcome, introductions, and ground rules
• Customer presentations
Trang 3• Employee small groups to review their own customer contact behaviors; prepare presentation to customers
• Dialogue between customers and employees; employees revisit attitudes and actions and recommend five each
• Lunch
• Employee small groups discuss and report barriers to being more customer focused
• Employees report actions needed from managers to enhance customer focus
• Employees report on ways to train colleagues in new attitudes and actions and
on how to monitor successful implementation
Postconference
• Explain conference outcomes to all employees
• Design training on new customer contact behaviors
• Budget and conduct training
• Create and begin using customer scorecards for feedback on effectiveness
Exhibit 15.2 PDI’s Leadership Philosophy Map
Past: Get results,
no excuses
Desired: Get results
through motivated people
Past: Expendable assets Desired: Trusted partners
Past: Self-preservation
Desired: Help others
succeed
Past: Controlling and
inconsistent
Desired: Consistent and
growth-oriented
Leadership
Motive
Methods
Mental model
Manner
Trang 47 Here’s a sample of attitudes and actions for one role group, counter sales:
Counter Sales: Attitudes and Actions
• Attitude: safety first Demonstrates a safety-first attitude Advises customers on safe handling of products Helps load product safely into customer’s vehicle The store is free from tripping and other safety hazards
• Attitude: “can-do” problem solver Displays and uses flyers, Solution Guides, and other resources Probes, listens, understands customer needs, and offers best solution Demonstrates knowledge of our products and business
Answers questions and explains related products and services Someone from Praxair has called to see whether all is well after I have made a significant purchase (for example, a welding machine)
• Attitude: responsive and reliable Provides accurate and reliable information Fills orders quickly and accurately Returns phone calls promptly Follows up on orders Stocks items I frequently use
• Attitude: honesty Tells the truth, does not hide mistakes Finds out correct answers when not sure Keeps commitments to get back to customers
• Attitude: professional and positive Acknowledges customer even when tied up with someone else Greets customer by name, smiles, makes eye contact
Comes out from behind the counter, shakes hands, and gives name Treats all customers as though it was their first visit
Keeps store clean and appealing Helps customers take product to vehicle Takes pride in personal appearance
• Attitude: team player
I get high-quality service at all Praxair stores Offers to share technical expertise
Draws on other Praxair resources to solve my problem
Trang 5ABOUT THE CONTRIBUTORS John Graboski is director, human resources, at Praxair Distribution, Inc He has
worked in the corporate world for twenty-five years, in marketing and sales, as well as HR, in three very different industries (telecommunications, health care insurance, and industrial gases) Still a marketing guy at heart, he looks at his role as one of helping employees sell not only the company’s products but also themselves successfully to customers He lives with his wife, Ginny, and two teenage daughters, Caitlin and Lexi, in Cheshire, Connecticut
Ruth Neil is manager, training and development, at Praxair Distribution, Inc.
She has a thirty-four-year track record in organizational change initiatives, espe-cially through training and development, employee relations, and employee communications interventions Her focus has been on grassroots implementa-tion of strategic change leading to service excellence in organizaimplementa-tions and to increased employee competence and commitment
Rich Rardin is president of BenchStrength Development, LLC He helps
orga-nizations develop leadership strategies that align with and drive their business strategies in order to achieve marketplace objectives A skilled facilitator, Rich empowers teams, as well as individual executive leaders, to overcome barriers
to organizational change objectives while living out their core values He has worked in leadership and organization development with a variety of Fortune
500 and nonprofit companies for over twenty-five years He has presented his proprietary executive coaching model at human resource conferences world-wide Rich and his family reside in Newtown, Connecticut
Trang 6CHAPTER SIXTEEN
St Luke’s Hospital and Health Network
This case study describes how this hospital and health network implemented
a leadership development program that achieved breakthrough results in patient satisfaction, improved quality of care, overall service, efficiency, and top status in the industry through a series of quality improvement initiatives, behavioral change programs, and an emphasis
on a five-point leadership model that is focused on results.
Exhibit 16.1: Strategic Plan Goals and Objectives 384 Exhibit 16.2: Management Philosophy, Vision for Patient
Satisfaction, PCRAFT Core Values, Service Excellence Standards of Performance, and Performance Improvement Plan 386 Exhibit 16.3: Leadership Steering Committee Mission, Vision,
365
Trang 7Exhibit 16.6: 2000–January 2004: St Luke’s Hospital and Health Network Major Accomplishments by Five Points
Exhibit 16.8: Accountability Grid for Best “People Point
of the Star,” Fall 2003: Linking Education to Changing Behavior 393
OVERVIEW
This case study illustrates the unique methodology taken by St Luke’s Hospi-tal and Health Network in assisting its managers become stronger leaders Led
by the leadership steering committee, a deliberate approach with a creative delivery strategy has been used for nearly three years in efforts to continuously develop the leadership skills and abilities of the over 260 managers in the health network
The strategy stems from a five-point model that embodies the foundation principles that are required for managers and leaders to realize the St Luke’s mission and vision The implementation of these principles is primarily realized through the delivery of regular leadership forums This casual learning envi-ronment is where managers can frequently interact, ask questions, and chal-lenge themselves by learning from other colleagues in different clinical, fiscal, and operational environments These forums, and subsequent associated events, provides additional outlets where managers can use new methodologies and ideas to better maximize their resources in accordance with the Five Points of the Star model
While this program is in its infancy, St Luke’s has already realized the ben-efits in areas of fiscal, clinical, operational, managerial, and human resource performance
HISTORY
St Luke’s Hospital and Health Network has a rich history of providing quality health care to generations of families Since it was chartered in 1872, St Luke’s has grown from a community hospital to the region’s most nationally honored integrated health care network; it comprises tertiary, nonprofit hospitals, more than 1,400 physicians, and numerous other related health organizations The
Trang 8network provides direct services to people in the Lehigh Valley, surrounding counties, and, in some cases, neighboring states The network includes more than 800 licensed beds, 72 medical specialties, more than 5,500 employees, and 40,000 annual patient admissions and is the second largest employer in Lehigh County As it has evolved, St Luke’s has always stayed at the forefront of med-ical technology Today St Luke’s is known for its nationally recognized heart and ICU care, its preeminence as a teaching institution, the excellence of its physi-cian, nursing, and other clinical staff, and its superior customer service In its
130 years, St Luke’s has stayed true to its mission to provide excellent care
INTRODUCTION
At St Luke’s, the board of trustees provides the stimulus, vision, and resources
to develop and successfully implement an effective strategic plan The plan pro-vides an overall foundation within which the network and its entities operate and form their own strategic plans The goals and objectives of the plan also align targets and interests of the network’s constituents, whose success is inter-dependent (see Exhibit 16.1)
As noted in the excerpts from the strategic plan, St Luke’s has a strong foun-dation and a clear commitment to its people as evident in its mission, vision, and guiding principles In addition, St Luke’s builds upon that foundation through the management philosophy, vision for patient satisfaction, PCRAFT (pride, caring, respect, accountability, flexibility, teamwork) core values, service excellence standards of performance, and performance improvement plan (see Exhibit 16.2 for all elements listed above)
St Luke’s mission, vision, and guiding principles are communicated through-out the network in varied written and verbal ways—such as framed, hanging copies of the mission, vision, values, and management philosophy; the mnemonic PCRAFT visually presented in creative ways; the Wall of Fame; the employee handbook; the standards of performance booklet; customer service
and management tips; Essentials (the annual mandatory education newsletter);
the network web site (www.slhhn.org)—stated as part of new employee orientation, and reinforced in educational programs and at employee meetings Richard A Anderson, president and CEO of St Luke’s Hospital and Health Network, is often heard to say, “St Luke’s is more than bricks and mortar
it is people.” Through its people, the network is steadfast in its commitment to
a mission of healing, realized through a sustained effort to create a lasting culture of service excellence The administration throughout the network, led
by Mr Anderson, embraces some basic concepts that foster a culture of service excellence Those concepts include
Trang 91 Employee satisfaction yields patient satisfaction yields a successful business (Build your people they build your business)
2 Employee satisfaction begins and ends with effective leaders who provide
• Vision
• Clear expectations regarding care and service
• Development and education
• Effective communication
• Role modeling
• Constructive feedback
• Recognition
3 Effective leaders can and need to be developed
4 Leadership development and education is based on educating to change behavior
Evidence of this is reflected in the interviewing (and hiring) practices, job descriptions, performance evaluations, and ongoing assessment of competence Employee involvement is actively and perpetually encouraged at St Luke’s Many workplace processes and systems exist to reinforce that involvement
DIAGNOSIS
Leadership “owns” the responsibility to create, support, and sustain an environment that values St Luke’s employees, physicians, and volunteers.
—Richard Anderson, president & CEO, St Luke’s Hospital and Health Network
In late 2000, senior administration began to realize that the health care envi-ronment was becoming increasingly challenging to all hospitals in the United States From reimbursement to privacy, a wide array of large issues consistently presented itself to the senior administrators across the health care landscape Being cognizant of these early challenges, St Luke’s was assertive in already implementing plans to handle the operational, clinical, and fiscal challenges of its immediate environment However, management uncovered that although it had action plans to take on all challenges in these three areas, it was not tak-ing the same assertive approach to meettak-ing the needs of its managers St Luke’s was not fully providing its own team with the ability to grow and expand their management and leadership skills in parallel with the environmental challenges that surrounded them
In embracing the concepts noted above, the St Luke’s Hospital and Health Network Administration recognized the need to provide consistent, effective
Trang 10leadership development across the network In order to accomplish that end,
a leadership steering committee, chaired by Robert P Zimmel, senior vice president of human resources for the network, was formed in June 2001 The leadership steering committee includes representation from the different network entities and, by design, teams people with varied backgrounds, communication styles, and skill sets The mission, vision, goals, and member roles of the committee were initially established and remain as guides to all that
is planned and implemented by the committee (see Exhibit 16.3) Completion
of the initial foundation work allowed the leadership steering committee to move into the process of design
DESIGN
The beginning steps to this change effort began by looking around, getting “out
of our woods,” if you will, and seeking out other models of leadership in health care The leadership steering committee performed the obvious literature search; however, not many substantial and successful models were found
Following the research assessment, members of the leadership steering com-mittee visited several sites that were considered qualitative performance indi-cators The target group was specific hospitals highly ranked in numerous categories of the Press Ganey survey While the visits were helpful and some knowledge was gained, committee members also left these sites with a strong belief that St Luke’s was on the right track with many of its existing practices
A key learning for this leadership group was the recognition that these organi-zations were intentional in their leadership development They designed set times throughout the year when they brought leaders together to educate These set times seemed to serve as the “milestone” days when growth opportunities would be deployed to employees
DEVELOPMENT
Prior to forming the committee that currently exists, a few charting members of the leadership steering committee traveled to St Charles, Illinois to attend a seminar hosted by Delnor Hospital It was there that the leadership steering committee was introduced to philosophies and methodologies of Quint Studer From Quint Studer and other industry leaders, the mantra, “As you grow your leaders, you grow your organization” was introduced to the St Luke’s team In addition to Studer’s influential philosophies, the St Luke’s team was introduced
to Studer’s “Five Pillars of Success.” From these pillars, the leadership steering committee designed the Five Points of the Star model (A star has significant