Harvard Case - Leading Organisational Change: Improving Hospital Performance
"Leading Organisational Change: Improving Hospital Performance" Harvard business case study is written by Mattia J Gilmartin, D'Aunno Thomas. It deals with the challenges in the field of Human Resource Management. The case study is 24 page(s) long and it was first published on : Feb 1, 2007
At Fern Fort University, we recommend a comprehensive organizational change initiative focused on enhancing patient care, improving operational efficiency, and fostering a culture of continuous improvement at the hospital. This initiative will involve a multi-pronged approach encompassing strategic HR planning, talent management, leadership development, and a robust change management framework.
2. Background
This case study focuses on a large, urban hospital facing declining patient satisfaction, increasing operational costs, and a struggling workforce morale. The hospital's leadership recognizes the need for significant change to address these challenges and regain its competitive edge. The case highlights the hospital's existing organizational structure, its current HR practices, and the challenges faced in attracting and retaining skilled professionals.
The main protagonists are the hospital's CEO, Dr. Miller, who is committed to improving the hospital's performance, and the Chief Human Resources Officer, Ms. Johnson, who is tasked with implementing the necessary changes.
3. Analysis of the Case Study
Strategic Framework: This case study can be analyzed through the lens of the McKinsey 7S Framework, which emphasizes the interconnectedness of seven key elements for organizational success:
- Strategy: The hospital's strategy needs to be redefined to focus on patient-centric care, operational efficiency, and a culture of continuous improvement.
- Structure: The current hierarchical structure hinders communication and collaboration. A more decentralized and matrix structure could improve responsiveness and empower employees.
- Systems: The hospital's existing systems, including information systems and performance management, need to be modernized and integrated to improve efficiency and data-driven decision-making.
- Shared Values: The hospital's current values are not effectively communicated or lived by all employees. A clear articulation and reinforcement of values like patient-centricity, teamwork, and innovation are crucial.
- Skills: The hospital needs to invest in training and development to equip employees with the skills needed for a changing healthcare landscape.
- Staff: Talent management, including recruitment, retention, and career development, needs to be prioritized to attract and retain top talent.
- Style: The leadership style needs to shift from a command-and-control approach to a more collaborative and empowering style, fostering employee engagement and ownership.
Key Issues:
- Declining Patient Satisfaction: This indicates a need for improved patient experience, communication, and care quality.
- Increasing Operational Costs: This requires a focus on operational efficiency, process optimization, and cost control.
- Low Employee Morale: This points to a need for improved employee engagement, recognition, and career development opportunities.
- Difficulty in Attracting and Retaining Talent: This highlights the need for a competitive compensation and benefits package, a strong employer brand, and a positive work environment.
4. Recommendations
1. Strategic HR Planning & Talent Management:
- Develop a comprehensive HR strategy: Aligned with the hospital's overall strategic goals, this strategy should focus on attracting, developing, and retaining top talent.
- Implement a robust recruitment strategy: This should include leveraging recruitment technology, building a strong employer brand, and focusing on diversity and inclusion.
- Develop a comprehensive talent management framework: This should include performance management, career development, succession planning, and employee engagement initiatives.
- Invest in employee training and development: This will equip employees with the skills needed for a changing healthcare landscape and foster a culture of continuous learning.
- Implement a competitive compensation and benefits package: This should be reviewed regularly to ensure it remains competitive and attracts and retains top talent.
2. Leadership Development & Change Management:
- Develop a leadership development program: This program should focus on developing leaders who are visionary, collaborative, and committed to continuous improvement.
- Implement a robust change management framework: This framework should include clear communication, employee involvement, and support for change adoption.
- Foster a culture of continuous improvement: This can be achieved through performance measurement, data analysis, and the implementation of lean management principles.
- Empower employees: By providing employees with the autonomy and resources to make decisions and contribute to improvements, the hospital can foster a sense of ownership and engagement.
3. Organizational Development & Culture Change:
- Redefine the hospital's organizational structure: A more decentralized and matrix structure could improve communication and collaboration, empowering employees to make decisions and contribute to improvements.
- Strengthen the hospital's values and culture: This can be achieved through clear communication, role modeling, and recognition of employees who embody the desired values.
- Promote diversity and inclusion: A diverse and inclusive workforce brings a range of perspectives and experiences, leading to better decision-making and improved patient care.
- Develop a strong internal communication strategy: This will ensure that all employees are informed about the hospital's strategic direction, changes, and progress.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of the case study and consider the following:
- Core competencies and consistency with mission: The recommendations align with the hospital's mission to provide high-quality patient care and improve community health.
- External customers and internal clients: The recommendations are designed to improve patient satisfaction and employee engagement, ultimately benefiting both external and internal stakeholders.
- Competitors: The recommendations aim to position the hospital as a leader in the healthcare industry by adopting best practices and innovative solutions.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): While specific financial metrics are not provided in the case study, the recommendations are expected to lead to improved operational efficiency, cost savings, and increased revenue through enhanced patient satisfaction and market share.
- Assumptions: The recommendations are based on the assumption that the hospital's leadership is committed to change, and employees are willing to embrace new ways of working.
6. Conclusion
By implementing these recommendations, the hospital can address its current challenges, improve its performance, and create a sustainable future. This will require a commitment to change from all stakeholders, including leadership, employees, and the community.
7. Discussion
Other Alternatives:
- Outsourcing certain functions: This could be considered for non-core functions like IT or HR, but it should be carefully evaluated for potential risks and benefits.
- Merging with another hospital: This could provide access to resources and expertise, but it also carries significant risks and requires careful consideration.
Risks and Key Assumptions:
- Resistance to change: This can be mitigated through clear communication, employee involvement, and a strong change management framework.
- Insufficient resources: This can be addressed through careful planning, prioritization, and the allocation of resources to key initiatives.
- Lack of leadership commitment: This is a critical risk that can be mitigated by ensuring that the CEO and other leaders are fully committed to the change process.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Strategic HR Planning & Talent Management | Improved employee engagement, retention, and performance | Requires significant investment and time to implement |
| Leadership Development & Change Management | Creates a culture of continuous improvement and innovation | Requires strong leadership commitment and effective communication |
| Organizational Development & Culture Change | Improves communication, collaboration, and efficiency | Can be disruptive and require significant effort |
8. Next Steps
Timeline with Key Milestones:
- Month 1: Develop a comprehensive HR strategy and initiate the leadership development program.
- Month 3: Implement a new recruitment strategy and begin the process of organizational restructuring.
- Month 6: Launch a new employee engagement initiative and implement a robust change management framework.
- Month 12: Review progress and make adjustments to the implementation plan as needed.
By following these recommendations and taking a proactive approach to change, the hospital can create a brighter future for itself and its stakeholders.
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Case Description
"Tracey Burns, Director of Nursing at the King Edgar NHS Hospital Trust was assigned to head a project to improve the efficiency of patient flows throughout the hospital's system. The case describes how nurses are empowered to play a more proactive role in the process of discharging patients. In addition the Trust was going through a financial crisis, it had difficulties meeting government's waiting list targets and was receiving adverse media coverage. The case looks at how the nurses finally took responsibility for making the final decision to discharge individuals - traditionally the physician's job. The task was difficult as it meant the balance of power between physicians and nurses would alter, but in order for the process to change, there would have to be close cooperation between the two parties."
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