By Dan Phillips
Partner, Phillips DiPisa
This is the second of five posts from our most recent white paper.
1. Matrix Management
As recently as ten years ago, some of the most successful executives in our industry were “top-down managers” – decision-makers who used a command and control approach in running their respective organizations or divisions. They sat at the top of a pyramid-shaped organizational structure and had both authority over, and responsibility for, everything below them.
Those days are coming to an end. Industry changes have caused organizations to rethink the way they deliver care and reevaluate their relationships with other institutions. Funding is limited at federal and state levels; access to capital makes it difficult for hospitals to invest in IT and infrastructure; economies of scale are needed in order to drive down costs as well as to exert leverage over payors and vendors.
Externally, this has resulted in hospitals banding together (not always by choice) as part of larger systems. And whether that means affiliations, partnerships, joint-ownership of assets and staff, or some other hybrid combination, the notion of a stand-alone institution is disappearing.
Internally, changes are taking place as well. For example, in an effort to provide better, more efficient care, many hospitals are organizing by service line, rather than by department as they had in the past. As a practical matter, that means that those in charge of a particular program – cardiology, for example – need to work across many areas (OR, ICU, telemetry, radiology, rehab, etc.), most of which they do not directly manage or employ.
For executives, these fundamental changes mean that accountability no longer resides with one person or within one department. To put it another way, the ability to lead through influence – not authority – is the new coin of the realm. Those who succeed are skilled at influencing competing agendas —enabling them to be effective in this fluid, less structured environment.
From a hiring perspective, careful interviewing has become more important than ever before. It’s no longer simply a question of reviewing resumes and finding someone with a specific number of years in a certain leadership role or a pedigree from a well-respected organization. Finding executives who have a strong team orientation (favoring the use of “we” over “I”) and who thrive on ambiguity is more important than ever.
To be continued…