Leading Change With Vigor: 6 Questions and Answers for Hospital CEOs

As the visionaries of their hospitals, CEOs are responsible for keeping their organization energized, operating at peak performance and staying up-to-date with changes in the industry. New initiatives should be tackled and implemented with zest and enthusiasm, but that is not always the case as CEOs often feel overworked, burned out or restricted by red-tape.

Kathy Gersch is chief marketing officer with Kotter International, which is headquartered in Boston with offices in Chicago and Seattle. The firm works with large, complex organizations that are undertaking major change at an accelerated rate. Here, Ms. Gersch shared insights on why healthcare organizations often hesitate to get creative, how CEOs can navigate around red-tape and what traits are proving to be more critical in the hospital C-Suite.  

Q: What leadership skills might CEOs and other executives need to embrace that weren't as critical before?

Kathy Gersch: I think something we've noticed and that Kotter International has been researching is that the rate of change is accelerating more and more rapidly. The changes you used to have time to react to, you no longer have that luxury of time. The need to build an organization that is adaptable to change and can handle change on an on-going basis is becoming more critical to survival. The traditional approach does not work anymore, like managing change through hierarchy. Now you need to move outside hierarchy and existing work processes to look at things in a different way.

Most people are trained in their career to manage, and it's important, but it's about controlling things and driving processes in the day-to-day. It's not as focused on the big picture. I think there's a set of skills leaders need to develop to lead change. It's critical to their success in the long-term, particularly in healthcare since there are so many dramatic changes right now.

It's often harder to drive change in healthcare environments, because people hold to what they know out of fear of impact to patients. But that can't allow you to not change and adapt going forward. Leaders should try to find a balance.

Q: How would you recommend leaders maintain a steady momentum and not burn out, both professionally and personally?

KG: The process we use relies upon developing leaders at all levels. It's critical that senior leaders be a large part, but they can't carry all of the weight. Executives often burn out because they're used to operating in a system where senior leaders need all the answers. The burden of change should be shared among a team of leaders from throughout the hospital who are passionate about achieving a long-term change and transforming healthcare.  

This is no small task. The inertia of the status quo can weigh down efforts to drive changes like the creation of accountable care organizations or efforts to take costs out of the hospital system. To overcome that resistance, organizations must create an aligned sense of purpose across the majority of the people in the organization to release the creativity and fight the fatigue that can otherwise create a barrier to change.

Q: How can CEOs introduce change without rattling an organization?

KG: It is critical for them to create a clear picture of the opportunity facing an organization, why there is a window of opportunity right now to make the changes, and what's in it for those folks who will be affected by the change. In terms of galvanizing the organization, it's critical to communicate clearly. You can't wait until you think you have all of the answers. Communicate right away, and talk to the head and the heart of the organization about what can be accomplished together.

I will give you a simple example. A hospital we worked with was struggling to get people to keep proper next of kin records. They were constantly keeping metrics on how many were filed properly and trying to raise the incidence of proper record keeping, They were not moving the needle at all. Finally, they brought in the stories of some real life examples of how the lack of recorded emergency contact information cost a life because there was no one to ask some vital questions and alternatively how it saved a life when the next of kin had the proper knowledge of allergies to a drug that was causing a life threatening reaction. After people understood the real impact that "paperwork" could have on patients the results changed immediately.   

Q: How can CEOs reduce red-tape/bureaucracy without creating problems?

KG: We really have a need for some level of bureaucracy in creating appropriate controls around healthcare, but it's also important to create a complementary structure to drive change. Maybe it's the creation of a coalition that operates with guidance from senior leadership, but focuses on opportunities [or change]. Innovation drives change.

Find a set of people that want to help. Guiding coalitions are typically made up of people who go through an application process; they are volunteers who really want to be there.  You want a cross-section of folks from the organization, senior leaders and entry-level folks. They might be natural leaders or casual leaders. Initiatives will have different paces, but a coalition allows them to maintain energy and urgency to not nosedive.

Q. How much should patients know about changes within a hospital?

KG: It depends on what they're doing. We've seen organizations that have initiatives and they might get patients on the team behind them. In general, the patient is concerned about what affects them and what's in it for them. You want to communicate to them to the extent they'll be affected. They don't need to know what changes you're making, they need to know what's in it for them.

Q: How can leaders communicate a hospital's new philosophy, focus or values? Can this be done short of a major rebranding campaign?

KG: It's about creating an experience for employees and patients. You can't go out and tell people, 'Here's our new way!' You just create an experience to introduce it. You can do an ad campaign, but if you don't experience it, it's just words. A new experience is what generates energy around a brand being changed. When hospital leaders go out and talk about values, and new people come in and experience those values, then that reinforces the brand.

Related Articles on Leadership:

A Relationship Checklist for Hospital CEOs: 7 Behaviors to Ace
10 Traits of Top Healthcare Leaders
5 Things Nobody Told Me Before I Became CEO


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