DRIVING CHANGE - Wins the Leadership Superbowl

By Barbara Carey, President, TCI

Ochsner Health System recently announced the layoff of 770 employees. This is a major change because Ochsner always said that it would never have layoffs. They were across the board and affected executives as well as staff.

When CEOs are instituting major change, their job is on the

line. Witness the recent firing of Chris Licht, the CEO and Chairman of CNN. His change strategies he said were to “restore the reputation of CNN” and they totally misfired and led to his departure.

If you are a CEO and considering driving change in your organization, your success depends on your ability to sell and communicate the strategy. Effective communication can be summarized into WHY, WHAT, WHO, WHEN and HOW. Answer these questions thoroughly for people at all levels and you increase your chances of success.

WHY is the Change Necessary?

Consider the general reasons for change and select the one that is driving change in your organization.

Growth Opportunities - easy to explain and demonstrate

Competitive Pressure - your employees already know this is having an effect Cultural Shifts - the wants and needs of consumers and employees change over time Technological Innovation - EX: banks using remote banking and ATMs need fewer branches
Process Improvement - costs need containment, better outcomes are required
Strategy Changes - EX: need more outpatient services, fewer inpatient needs
New Products and Services - need more infusion centers, need a focus on new cancer drugs and therapies. Laser surgery requires different skills and equipment, etc

The CEO must carefully tell the story of why the change is really necessary. He or she must also acknowledge that the proposed change will bring on some challenges.

WHAT Will Be Different?

Will departments change structure, be eliminated, hours increased, new facilities built, organization chart shifted? Plan and answer specifically what will happen.

WHO Will Be Affected?

CEO communication should delineate as much as possible who will be affected. If it is system wide change, will a certain group be more affected than others?

WHEN Will It Happen?

The CEO needs to be clear in all communications what the time frame will be. Timing is important. If layoffs are part of the plan, morale will be affected and even more affected when the time frame is vague and drawn out. Talented people will start searching for other opportunities.

HOW Will the Organization, Patients and Employees Benefit From the Proposed Change?

The CEO must sell the change by presenting the benefits. Employees always want to know how they personally will be affected.

The CEO must discuss the benefits of the change whatever they may be. Some options are: more growth (promotion, salary increases possible) or better processes may lighten the workload. The anticipated change may make the organization more competitive within the region with more market share which may lead to staff opportunities or job security. A larger, more prominent organization may engender pride in staff and physicians and attract other highly skilled health providers.

CEOs should envision the benefits of the proposed change for all stakeholders and communicate with them using a variety of platforms. Even large organizations can communicate directly with employees using technology.

During the acquisition of another organization, these questions are extremely important both to the merged staff and the current staff. Communication before, during and after will enable the true value of the merged entity to be realized.

One thing that TCI has observed is that if the CEO really manages a major change well, then the organization becomes more accepting of changes in the future and develops the ability to change without a lot of pushback. This is a major competitive advantage in the dynamic world of healthcare.

Playing in the big game of change, putting points on the board and winning is a huge boost to an organization and the CEO’s career.

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CEO Leadership