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Strategy Failing Because of Leadership?

Strategy Failing Because of Leadership?

Mike Tyson

Regardless of what type of strategy planning system your organization utilizes, there is one thing you can be assured of;  not everything will go as planned.  Former world heavyweight boxing champion Mike Tyson put it bluntly, “Everyone has a plan until they get punched in the mouth.”  Former U.S. President, Dwight D. Eisenhower stated it like this“…the very definition of “emergency’ is that it is unexpected, therefore it is not going to happen the way you are planning.”

 Former President Dwight D. Eisenhower

While strategy can fail for any number of reasons, it is the leadership of an organization that bears the responsibility for ensuring the successful execution of an organization’s strategy. Another Eisenhower quote simply states, “Leadership consists of nothing but taking responsibility for everything that goes wrong and giving your subordinates credit for everything that goes well.” 

There are a number of reasons why leaders are unsuccessful. In some cases, leaders are simply out of touch or living in the past. They have failed to stay abreast of the changing times in a changing world. Other leaders may have delegated responsibility to incompetent staff or have allowed “venomous” individuals to be able to exert too much power and influence within the organization leading to chaos, dissent and dysfunction. Another problem may be incompetence at the top level of the organization based on the “Peter Principle,” where people advance up the chain of command until they reach their level of incompetence. Finally a fourth area that can severely hamper an organization is organizational structure and bureaucracy.

Effective leadership starts with an individual in a leadership role who is effective in delegating responsibilities and empowering employees with the ability to accomplish what needs to be done. Leaders must inspire their subordinates to action, challenging them to perform at the highest possible level and developing future leaders for the organization. Simultaneously, the effective leader will also be building a culture of trust. Outstanding leaders not only are able to accomplish these things, but also create a culture with a positive view of change and accountability.

Granted, a leader cannot do it alone. He or she must build a team of individuals who are aligned for the purpose of obtaining organizational excellence and achieving the organizational goals. Effective leaders listen and observe; they solicit honest feedback and recognize what the healthy heartbeat of their organization looks like. They are not micro-managers, nor dictators, but rather have the ability to build and encourage teamwork and creativity. Leaders must learn to exercise discretion in selecting future leaders and managers in the organization and should also not be afraid to address issues and individuals detrimental to the success of the organization.

The fact is strategy often does fail. Sometimes it may be the right people were not included in the effort, or perhaps the goals set forth in the strategy were unrealistic to begin with. Maybe the organization lacks accountability, honesty and is resistant to change. Whatever the reason, leadership, in one way or another bears the responsibility for the failure. Often, the tendency is to shift the blame to lower levels of the organization, but in truth, strategy failure ultimately falls on the executive level of leaders in the organization.

The Nine Steps to Success™ methodology for building a balanced scorecard is one approach that supports the empowerment and delegation of responsibility throughout the organization. It utilizes a healthy cross-section of employees from throughout the organization, obtains their commitment and buy-in and fosters active and open communication through all levels of the organization. As a result, silos begin to disappear, employees become engaged, energized and responsive to change. Communication improves and the organization moves towards alignment and becoming an organization of continual improvement.

For more information on the Nine Steps Balanced Scorecard process or to see how it could work for your organization, contact info@strategymanage.com

 

Sources:

Business Strategy – The Art, Science and Craft of Decision-Making: Failure of Strategies, Retrieved from: https://en.wikibooks.org/wiki/Business_Strategy/Failure_of_Strategy

53 Insightful Dwight D. Eisenhower Quotes that Are Timeless. Retrieved from: https://quotes.thefamouspeople.com/dwight-d-eisenhower-1270.php

Organizations from Hell: When Leadership Fails, Ronald E Riggio, Ph.D., 2019, Retrieved from: https://www.psychologytoday.com/us/blog/cutting-edge-leadership/200906/organizations-hell-when-leadership-fails

South Florida Sun Sentinel – Mike Tyson Explains One of His Most Famous Quotes, Retrieved from: https://www.sun-sentinel.com/sports/fl-xpm-2012-11-09-sfl-mike-tyson-explains-one-of-his-most-famous-quotes-20121109-story.html

 

 

Strategic Planning in the Healthcare Industry

Strategic Planning in the Healthcare Industry

Over the last 10 years we have seen a tremendous change in the healthcare industry.  Whether it is a shift in philosophy to focus on more value-based care or navigating the impact of implementing the Affordable Care Act here in the United States, significant shifts and changes have occurred and are occurring every day.  Given the relative unpredictability of how the healthcare market will change, is there really any use for those in the industry to go through a strategic planning initiative?  The answer is of course yes, but the real question is “how?”

To be successful in the future, no matter how turbulent the path forward may be, organizations need to create a vision based on the best future assumptions they can identify.  With any strategic planning effort is it really important to have at its foundation key assumptions about how the world will be different.  Organizations then can describe what they need to look like given those future assumptions, and then design a strategy to help them bridge the gap between where they are today and achieving that future success.  But if all our assumptions of the future are up in the air, then how can we really build a strategy effectively?

I would argue that in industries that are experiencing a lot of change it is even more important to be strategic!  Yes, there are many unknowns given the relative volatility of the US political landscape as it pertains to healthcare.  But there are some key assumptions that can be made that are relative certainties regardless of any potential future political or regulatory shifts?  If we can identify those “most probable” assumptions in the healthcare industry or in our particular marketplace, then it would be worth our time to identify them and begin building our response strategies accordingly.  I would like to present the follow set of ideas as examples of assumptions that most participants in the healthcare sector need to consider over the next five years and could be the basis for strategic discussion.  These are not meant to be all inclusive, but merely to demonstrate that there are fundamental assumptions that can be identified even in a marketplace where significant uncertainty exists.

The need to provide ever increasing quality patient care will continue.  The focus over the next five years will continue to be on delivering highly impactful, cost-effective healthcare.  Whether it is driven by key stakeholder requirements or customer expectations, we know that successful players in the healthcare industry will be those that can generate healthy outcomes for their patients.  Fundamentally having strategies built around improved effectiveness and efficiency in delivering quality patient care will be a fundamental requirement in the future.  No real surprises but any strategic discussion in the healthcare sector must begin with patient care!  The point is that the ability to differentiate regarding healthcare outcomes will be the bases for any future success in the industry.

Changing in customer volume and demographics will continue. The fact is that the US population is going to continue to grow over the next five years.  In May of 2017, the US passed the 325 million mark and is expected to be over 332 million by 2020 (US Census data).  That means essentially there will be more people needing care in the future with some healthcare markets seeing fairly dramatic increases in patient populations.   We have seen a significant impact in demographic shifts in the US over the last five years and this trend will continue over the next five years as the increases in Hispanic and Asian demographic groups continues at a high rate.  How will these assumptions impact capacity requirements or service delivery requirements within the healthcare sector?

Labor supply changes.  The US has seen labor supply grow by 2.6 percent per year over the last decade, but that trend will not continue.  Rand researchers (Karoly & Panis, 2004) have postulated that the growth of labor supply will only be around .04 percent over the next decade and will be even smaller the following decade.  Also, while the trend has been a more aging workforce over the last 20 years this will also change with the workforce being more evenly balanced across age groups in the future.  How will this impact the availability of skill workers and experience levels in the healthcare industry?  What does this mean for how we need to recruit and retain of workforce?

Continued increase on wellness and prevention.  Significant increase in innovation with regard to nutrition for example will be driven by increase consumer demand for wellness. Patients are sharing that they want advice on weight management and diet therapies (PwC Health Research Institute, 2016) for example leading to increased focus on these services within the industry.  Smoking cessation and fitness programs are other programs that are already tied to health outcomes and will continue to be important in the future.  How will this trend impact the future services healthcare practitioners will provide?  Or the information they make available to their patients?

Emerging technologies in the healthcare marketplace.  PWC reports that “the US health industry lags behind other industries, such as retail and telecommunications, in deploying emerging technologies, including artificial intelligence, drones and virtual reality but that this trend is about to change.” (PwC Health Research Institute, 2016).  Accenture reports that “the global healthcare industry in the year 2020 will be a highly connected environment powered by large data networks, cloud computing, and mobile devices. There will be widespread increases in the number of connected healthcare networks providing seamless integration between care providers, patients, pharmaceutical companies, health insurers, and other invested parties anywhere in the world. Care within this model will become more patient-centric, less expensive to provide, and more innovative.” (Meissner, 2013).  These assumptions would call for a need to invest in breakthrough technologies that impact how patient care is provided and operational business processes are managed moving forward.  This will also impact the types of skills needed in the future within the industry.

Rising operating costs driven by government regulations and expanded capacity requirements will impact the financial viability of healthcare systems (Jonash & Ronanki, 2015).  Healthcare CEO’s and COO’s must find innovative was to drive revenue and decrease costs.  How will rising costs impact the future viability of healthcare providers?  How must they change how they do business?  In what areas must they innovate to reduce costs?

I share these discussion points as merely a sampling of assumptions that could be discussed by healthcare industry players in formulating their 3-5-year strategies.  With proper research conducted, there are dozens of additional assumptions that we could discuss to really understand the future of the healthcare industry.  I provide these few ideas as evidence that even in an industry that is experiencing rapid, constant change, there is a need to really understand how the world will be different in the future.  To do so, we must first understand what assumptions can be made and set out to use a strategic planning framework to understand how our healthcare organization must transform in the future in the face of those assumptions.  Once we are able to articulate that future successful state, we can then work to understand what must be accomplished to get from where we are today to achieving the needed transformation that must take place in the next few years – our strategy becomes the path and the plan to future success.

Sources:

Jonash, Ben & Rajeev Ronanki (2015). The convergence of health care trends: Innovation strategies for emerging opportunities. Retrieved from: https://www2.deloitte.com/us/en/pages/life-sciences-and-health-care/articles/convergence-health-care-trends.html?id=us::3bi:confidence:eng:cons::::qQmDoWY2::77378163007585:bb:::nb

Karoly, Lynn A. and Constantijn (Stan) Panis (2004). The Future at Work: Trends and Implications. Retrieved from: https://www.rand.org/pubs/research_briefs/RB5070.html

Meissner, Armin (2013). The Global Healthcare Industry in the Year 2020. Retrieved from: https://www.mddionline.com/global-healthcare-industry-year-2020.

PwC Health Research Institute (2016). Top health industry issues of 2017: A year of uncertainty and opportunity. Retrieved from:  https://www.pwc.com/us/en/health-industries/pdf/pwc-hri-top-healthcare-issues-2017.pdf

U.S. Census Bureau (n.d.). Retrieved from: https://www.census.gov/2020census

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