Survey shows shift in health care industry priorities

Organizational growth and profitability top the list of issues leaders across Washingtons health care industry are dealing with. For an industry that has traditionally been focused more on patient care and medical outcomes, this issue may come as a surprise. However, health care reform, the uncertain economy and other strategic external forces have made the business of health care just as important as the delivery of care.

Leaders from across the industry responded to a survey conducted by the Albers School of Business and Economics Center for Leadership Formation (home of the new Health Leadership EMBA). The survey was conducted during Seattle Business magazines Leaders in Health Care awards event in February. The Centers new Health Leadership EMBA was the key sponsor of the event.

Results from the survey indicated that:

• 27% of leaders indicate that growth and profitability is the top issue to be dealt with over the next 12-18 months.
• 22% believe that the uncertain economy is the key lever that will drive decisions for their organization over the next 12-18 months.
• 20% indicate that the implementation of health care reform is the biggest external pressure influencing organizational decision making.

Other issues include attracting and retaining top talent (16%), government regulation (12%) and all of the above (2%).

These issues compel leaders across the health industry to scan their organizations in search of the competencies and skills required to deal with issues. The survey conducted by the Center for Leadership Formation provided a list of important leadership competencies and asked survey respondents to rank the competencies that would best help the organization cope with organizational change over the next 18 months. The competencies are Strategic Skill, Results Orientation, Drive for Excellence, Agility and Courage, Interpersonal Skills, Integrity and Collaborative Influence. Results indicated that:

Results Orientation and Agility and Courage are the top competencies. Both hits the top of the list from 21% of respondents, perhaps suggesting a balance between long-term goals (results orientation) and the ability to alter the course when change inevitably surfaces (agility and courage).

Strategic Skill is just behind the lead competencies noted above, at 19%.

Collaborative Influence (15%), Interpersonal Skills (10%), Drive for Excellence (9%), and Integrity (5%) round out the list.

These results suggest an important equilibrium of skills exists between strong analytical capabilities and behavioral capacities or soft skills. This is supported by the book Rethinking the MBA: Business at a Crossroads by Srikant Datar, David A. Garvin, and Patrick G. Cullen. In the book, the authors discuss how recent MBA graduates lack the essential leadership and behavioral competencies to be effective in todays business environment.

The Leadership EMBA and new health Leadership EMBA use a balanced curriculum where a full 50% of program curriculum focuses on well-known leadership competencies. Additionally, nearly 17% of the curriculum is dedicated to strategy formation and implementation. The balance of the curriculum brings the spotlight to analytical topics such as accounting, finance, and marketing. The outcomes of this curriculum have produced alumni who are able to lead effectively and have the business acumen to make decisions that maximize growth and profitability, while ensuring that care and quality are at the top of the list. For example, alumni from two different health care organizations have been instrumental in the development of new facilities that allow clinicians to provide care that is efficient and effective, while creating a building that supports a culture of collaboration and community.

Change in the health care industry is inevitable. What is your organization doing to provide the next level of tools to ensure that growth is maximized but quality is maintained?

Reference:

Datar, S., Garvin, D. A., Cullen, P. G. (2008). Rethinking the MBA: Business at a Crossroads. Harvard Business School Publishing. Cambridge, MA.

Penny Koch-Patterson, Ed.D., is associate director of the Center for Leadership Formation in the Albers School of Business and Economics at Seattle University.