Harvard Case - Dr. Tom Mihaljevic and Cleveland Clinic
"Dr. Tom Mihaljevic and Cleveland Clinic" Harvard business case study is written by Linda A. Hill, Lydia Begag. It deals with the challenges in the field of Organizational Behavior. The case study is 60 page(s) long and it was first published on : Apr 22, 2024
At Fern Fort University, we recommend that Dr. Tom Mihaljevic, CEO of Cleveland Clinic, implement a comprehensive strategy to foster a culture of innovation, collaboration, and continuous improvement. This strategy should focus on empowering employees, leveraging technology, and promoting a patient-centric approach to healthcare delivery. By doing so, Cleveland Clinic can maintain its position as a leading healthcare provider and attract and retain top talent in a highly competitive environment.
2. Background
This case study focuses on Dr. Tom Mihaljevic, the CEO of Cleveland Clinic, a renowned non-profit academic medical center. Dr. Mihaljevic faces the challenge of maintaining Cleveland Clinic's competitive edge in an increasingly complex and dynamic healthcare landscape. He needs to navigate challenges like attracting and retaining top talent, managing costs, and embracing technological advancements while adhering to the organization's mission of providing world-class patient care.
The main protagonists in this case are Dr. Mihaljevic and the Cleveland Clinic leadership team. They are tasked with making strategic decisions to ensure the organization's long-term success and maintain its reputation as a leading healthcare provider.
3. Analysis of the Case Study
The case study highlights several critical issues that Cleveland Clinic needs to address:
1. Organizational Culture and Leadership: While Cleveland Clinic boasts a strong culture of excellence and patient-centricity, Dr. Mihaljevic recognizes the need to foster a more innovative and collaborative environment. This requires a shift in leadership style, moving from a traditional hierarchical model to a more empowering and participative approach.
2. Talent Management and Recruitment: The case study emphasizes the need to attract and retain top talent, especially in a competitive market. This requires a focus on employee engagement, development, and career progression. Cleveland Clinic needs to develop strategies to address the changing needs and expectations of its workforce, particularly among younger generations.
3. Technology and Innovation: Dr. Mihaljevic recognizes the importance of embracing technology to improve patient care, enhance operational efficiency, and drive innovation. This requires a strategic investment in technology infrastructure, data analytics, and digital health solutions.
4. Financial Sustainability: The case study acknowledges the financial pressures facing healthcare organizations. Cleveland Clinic needs to develop strategies to manage costs effectively without compromising patient care quality. This may involve exploring new revenue streams, optimizing operations, and leveraging technology to improve efficiency.
5. Cross-Functional Collaboration: The case study highlights the need for increased collaboration between different departments and specialties within Cleveland Clinic. This requires breaking down silos, promoting communication, and fostering a culture of shared responsibility.
4. Recommendations
To address these challenges, Cleveland Clinic should implement the following recommendations:
1. Cultivate a Culture of Innovation and Collaboration:
- Leadership Development: Implement leadership development programs that emphasize transformational leadership, fostering a culture of empowerment, collaboration, and risk-taking.
- Employee Engagement: Conduct regular employee surveys and feedback sessions to understand employee needs and concerns. Implement initiatives that promote employee engagement, such as recognition programs, mentorship opportunities, and flexible work arrangements.
- Innovation Initiatives: Establish dedicated innovation hubs or teams to foster a culture of experimentation and explore new ideas. Encourage employees to participate in hackathons, idea competitions, and other initiatives that promote innovation.
2. Enhance Talent Management and Recruitment:
- Talent Acquisition Strategy: Develop a comprehensive talent acquisition strategy that focuses on attracting and retaining top talent. This may involve leveraging social media platforms, attending industry events, and offering competitive compensation and benefits packages.
- Employee Development Programs: Invest in employee development programs that provide opportunities for professional growth and career advancement. This may include mentorship programs, tuition reimbursement, and leadership training.
- Diversity and Inclusion: Promote a diverse and inclusive workplace to attract a wider pool of talent and foster a more innovative and creative environment.
3. Embrace Technology and Innovation:
- Technology Investment: Invest in technology infrastructure, data analytics, and digital health solutions to improve patient care, enhance operational efficiency, and drive innovation.
- Digital Transformation: Develop a comprehensive digital transformation strategy to leverage technology to improve patient experience, streamline processes, and enhance clinical decision-making.
- Partnerships and Collaborations: Explore partnerships and collaborations with technology companies, startups, and other healthcare organizations to accelerate innovation.
4. Ensure Financial Sustainability:
- Cost Optimization: Implement cost optimization strategies to manage expenses effectively without compromising patient care quality. This may involve streamlining processes, reducing waste, and negotiating better contracts with suppliers.
- New Revenue Streams: Explore new revenue streams, such as offering value-based care services, developing innovative medical devices, or expanding into new markets.
- Financial Transparency: Maintain financial transparency and accountability to build trust with stakeholders and ensure long-term sustainability.
5. Promote Cross-Functional Collaboration:
- Shared Goals and Objectives: Develop shared goals and objectives across different departments and specialties to foster a sense of collective purpose.
- Communication and Collaboration Tools: Implement communication and collaboration tools to facilitate information sharing and teamwork.
- Cross-Functional Teams: Create cross-functional teams to work on specific projects and initiatives, leveraging the expertise of different departments.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Cleveland Clinic's mission of providing world-class patient care and fostering a culture of innovation.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (patients) and internal clients (employees).
- Competitors: The recommendations help Cleveland Clinic stay ahead of the competition by embracing innovation, attracting top talent, and focusing on financial sustainability.
- Attractiveness: The recommendations are expected to result in improved patient care, increased employee engagement, and enhanced financial performance.
6. Conclusion
By implementing these recommendations, Dr. Mihaljevic and the Cleveland Clinic leadership team can foster a culture of innovation, collaboration, and continuous improvement. This will enable the organization to maintain its position as a leading healthcare provider, attract and retain top talent, and ensure long-term sustainability in an increasingly competitive environment.
7. Discussion
Alternatives:
- Mergers and Acquisitions: Cleveland Clinic could consider merging with or acquiring other healthcare organizations to expand its reach and market share. However, this approach carries significant risks and requires careful due diligence.
- Outsourcing: Cleveland Clinic could outsource certain non-core functions to reduce costs and focus on core competencies. However, this approach may impact employee morale and could lead to loss of control over certain processes.
Risks and Key Assumptions:
- Resistance to Change: Implementing these recommendations may face resistance from some employees who are comfortable with the status quo.
- Technology Adoption: The successful adoption of new technologies requires significant investment and ongoing training and support.
- Financial Sustainability: Achieving financial sustainability requires careful planning and execution of cost optimization and revenue generation strategies.
8. Next Steps
- Develop a Detailed Implementation Plan: Create a detailed implementation plan with specific timelines, milestones, and responsible parties for each recommendation.
- Communicate the Strategy: Communicate the strategy clearly and transparently to all employees to build buy-in and support.
- Monitor Progress and Make Adjustments: Regularly monitor progress towards achieving the desired outcomes and make adjustments to the strategy as needed.
By taking these steps, Cleveland Clinic can successfully navigate the challenges of the healthcare landscape and continue to provide world-class patient care for years to come.
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Case Description
In December 2022, Dr. Tomislav ("Tom") Mihaljevic, CEO and President of Cleveland Clinic, was reflecting on the last few years at the hospital, marked both by unprecedented challenges and remarkable achievements. Cleveland Clinic had recently been ranked the world's second-best hospital. Dr. Mihaljevic was especially proud of the special recognition given to Cleveland Clinic's COVID-19 pandemic response and attributed this to the hospital's 77,000 "caregivers" (defined as all clinical and nonclinical personnel at the hospital). Despite ongoing challenges, from an anticipated operating loss in 2023 to extreme burnout for caregivers across the hospital enterprise, Dr. Mihaljevic was contemplating ambitious Objective Key Results (OKRs) for 2023, particularly for caregivers. Dr. Mihaljevic and his executive leadership team grappled with the latest pressing issues in their weekly team meeting. They had missed their caregivers targets two years in a row, but Dr. Mihaljevic still thought it was best to set stretch goals for 2023. As they thought about the need to attract and retain caregivers, they recognized how imperative it was to accelerate their digital journey. The executive team was now considering how to achieve this by leveraging technology and data to improve patient and caregiver experiences. It was not clear what 2023 would bring for the hospital, but Dr. Mihaljevic remained optimistic about the year ahead and delivering on Cleveland Clinic's four care priorities: patients, caregivers, organization, and community.
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