Harvard Case - Paul Levy: Confronting a "Corporate Campaign" (A)
"Paul Levy: Confronting a "Corporate Campaign" (A)" Harvard business case study is written by James K. Sebenius. It deals with the challenges in the field of Negotiation. The case study is 7 page(s) long and it was first published on : Dec 10, 2013
First, the CRM's corporate campaign is a well-organized and effective strategy that has put BIDMC on the defensive. The CRM has successfully used media attention and public pressure to damage BIDMC's reputation and financial standing.
Second, BIDMC has been slow to respond to the CRM's campaign. Levy has been reluctant to engage in direct negotiations with the CRM, fearing that it would legitimize the union's claims. As a result, BIDMC has been forced to react to the CRM's attacks rather than proactively shaping the narrative.
Third, the conflict between BIDMC and the CRM is rooted in a fundamental disagreement over the role of labor unions in the healthcare industry. The CRM believes that unions are essential to protecting the rights of healthcare workers and ensuring quality patient care. BIDMC, on the other hand, believes that unions are unnecessary and that they interfere with the hospital's ability to manage its workforce effectively.
4. Recommendaations
In light of the analysis above, we recommend that Levy engage in principled negotiation with the CRM to resolve the corporate campaign. Principled negotiation is a negotiation strategy that focuses on finding mutually acceptable solutions that meet the interests of both parties. It is based on the following principles:- Separate the people from the problem. This means focusing on the underlying issues of the conflict rather than the personal relationships between the parties.
- Focus on interests, not positions. This means understanding the underlying needs and concerns of both parties, rather than simply their stated positions.
- Generate a variety of options before deciding. This means brainstorming a wide range of possible solutions that could meet the interests of both parties.
- Insist on objective criteria. This means using data and evidence to support your proposals, rather than relying on subjective opinions.
- Be willing to walk away. This means being prepared to end the negotiation if you cannot reach an agreement that meets your interests.
5. Basis of Recommendaations
Our recommendation is based on the following considerations:- Core competencies and consistency with mission: Principled negotiation is a core competency of effective leaders. It is consistent with BIDMC's mission of providing high-quality patient care and its values of compassion, respect, and integrity.
- External customers and internal clients: Principled negotiation can help BIDMC to resolve the conflict with the CRM in a way that meets the interests of both parties. This will protect BIDMC's reputation and financial standing, and it will ensure that patients continue to receive high-quality care.
- Competitors: Principled negotiation can help BIDMC to gain a competitive advantage over other hospitals that are facing similar challenges from labor unions. By demonstrating a willingness to engage in dialogue and find mutually acceptable solutions, BIDMC can position itself as a leader in the healthcare industry.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even,payback): The attractiveness of principled negotiation is that it can lead to win-win solutions that benefit both parties. In the case of BIDMC, principled negotiation could help to resolve the conflict with the CRM in a way that protects the hospital's reputation and financial standing, and it could also lead to improvements in patient care.
- Are all assumptions explicitly stated (e.g., needs, technology trends)' The assumptions underlying our recommendation are that:
- The CRM is a legitimate organization that represents the interests of healthcare workers.
- BIDMC is committed to providing high-quality patient care.
- Both parties are willing to engage in principled negotiation in good faith.
6. Conclusion
In conclusion, we believe that principled negotiation is the best way for BIDMC to resolve the corporate campaign against it. By engaging in dialogue and finding mutually acceptable solutions, BIDMC can protect its reputation and financial standing, and it can ensure that patients continue to receive high-quality care.7. Discussion
**Other alternatives not selected:** Other alternatives that were considered include:- Confrontational negotiation: This approach would involve BIDMC taking a hard line against the CRM and refusing to negotiate. However, this approach is likely to escalate the conflict and make it more difficult to resolve.
- Accommodation: This approach would involve BIDMC giving in to the CRM's demands. However, this approach is likely to set a precedent for future negotiations and make it more difficult for BIDMC to manage its workforce effectively.
Risks and key assumptions: The key risks and assumptions associated with our recommendation are:
- The CRM may not be willing to engage in principled negotiation. If the CRM is not willing to negotiate in good faith, then it will be difficult to reach a mutually acceptable solution.
- The negotiations may be protracted. Principled negotiation can be a time-consuming process. It is important for BIDMC to be prepared for the negotiations to take several months or even years.
- The negotiations may not be successful. Even if both parties are willing to engage in principled negotiation, there is no guarantee that they will be able to reach an agreement.
8. Next Steps
If Levy decides to adopt our recommendation, we recommend that he take the following steps:- Contact the CRM and express his willingness to engage in principled negotiation.
- Appoint a team of negotiators who are experienced in principled negotiation.
- Develop a negotiation plan that outlines the hospital's goals and objectives.
- Begin negotiations with the CRM in a spirit of good faith.
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Case Description
Hospital CEO Paul Levy confronts an SEIU unionization drive via a "corporate campaign" aimed at undercutting the hospital's relationships with key internal and external constituencies. Having shepherded one of Boston's top teaching hospitals much of the way through a painful turnaround, but with the hospital still in a fragile financial condition, Levy must formulate a strategy and tactics to deal with the impending initiative by the SEIU, the fastest growing union in the United States with 2.1 million members and a huge organizing budget. The union will likely seek the hospital's agreement to a "neutrality agreement," under which, unlike traditional union processes, management would effectively be silenced during the organizing process. Levy is concerned that the hospital's strategy of innovation and flexibility would be imperiled by an SEIU-unionized workforce.
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