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Harvard Case - Navigating Change at Alaska's Southcentral Foundation

"Navigating Change at Alaska's Southcentral Foundation" Harvard business case study is written by Erin E. Sullivan, Jessica L. Alpert. It deals with the challenges in the field of Organizational Behavior. The case study is 12 page(s) long and it was first published on : Sep 1, 2016

At Fern Fort University, we recommend a multi-pronged approach for Southcentral Foundation (SCF) to navigate its change management challenges, focusing on building a robust organizational culture that fosters innovation, adaptability, and employee engagement. This approach will involve a combination of leadership styles, organizational culture, team dynamics, motivation theories, and change management strategies, all underpinned by a commitment to diversity and inclusion and employee empowerment.

2. Background

This case study focuses on Southcentral Foundation, a non-profit healthcare organization serving Alaska Native people. SCF faces the challenge of adapting to a rapidly changing healthcare landscape while maintaining its commitment to its unique cultural values and mission. The case highlights the organization's struggle to implement new technologies, improve operational efficiency, and address the growing needs of its diverse patient population. Key protagonists include:

  • Dr. Katherine Gottlieb: CEO, passionate about SCF's mission and committed to its success.
  • The Board of Directors: Oversees SCF's strategic direction and faces pressure to ensure financial stability and operational efficiency.
  • The SCF staff: A diverse group with varying levels of acceptance and understanding of the need for change.

3. Analysis of the Case Study

Organizational Culture and Change Management: SCF's strong cultural identity, rooted in its commitment to Alaska Native values, presents both a strength and a challenge. While it fosters a sense of community and shared purpose, it can also create resistance to change. This resistance is further amplified by the organization's historical reliance on consensus-based decision-making, which can slow down the implementation of new initiatives.

Leadership Styles and Team Dynamics: The case highlights the importance of leadership styles in driving change. Dr. Gottlieb's visionary leadership is crucial for setting the strategic direction, but she needs to effectively engage and empower her team to implement the necessary changes. This requires a shift towards a more collaborative and participative leadership style, fostering open communication and building trust within the organization.

Motivation Theories and Employee Engagement: SCF's employees are deeply committed to its mission, but they may not be fully engaged in the change process. Understanding and addressing their concerns, providing clear communication, and offering opportunities for growth and development are crucial for fostering employee engagement. This can be achieved by implementing employee motivation strategies that align with SCF's values and address the individual needs of its workforce.

Power and Politics in Organizations: The case highlights the potential for internal power struggles and political maneuvering to hinder change initiatives. It is crucial to address these dynamics by promoting transparency, fostering open dialogue, and ensuring that all stakeholders have a voice in the decision-making process.

Diversity and Inclusion: SCF's commitment to serving Alaska Native people requires a deep understanding of their diverse needs and cultural perspectives. This necessitates a strong focus on diversity and inclusion within the organization, ensuring that all voices are heard and valued.

Technology and Analytics: SCF's adoption of new technologies, such as electronic health records, is essential for improving operational efficiency and patient care. However, this requires overcoming resistance to change and ensuring that the implementation process is well-planned and adequately supported.

Organizational Structure and Design: SCF's organizational structure may need to be reviewed and adjusted to support the implementation of change initiatives. This could involve creating cross-functional teams, empowering employees to take on new responsibilities, and streamlining decision-making processes.

4. Recommendations

  1. Cultivate a Culture of Change:

    • Leadership Development: Implement a leadership development program that emphasizes collaborative leadership, communication skills, and change management expertise.
    • Organizational Storytelling: Use storytelling to highlight the importance of change and connect it to SCF's core values.
    • Employee Engagement Initiatives: Create opportunities for employees to participate in the change process, providing feedback and contributing ideas.
    • Psychological Safety: Foster a culture of psychological safety where employees feel comfortable sharing their concerns and ideas without fear of retribution.
  2. Embrace Technology and Innovation:

    • Technology Adoption Roadmap: Develop a clear roadmap for technology adoption, addressing potential challenges and providing adequate training and support.
    • Data-Driven Decision Making: Leverage data analytics to inform decision-making and measure the impact of change initiatives.
    • Innovation Hub: Create an innovation hub within SCF to encourage experimentation and explore new solutions.
  3. Strengthen Organizational Structure:

    • Cross-Functional Teams: Establish cross-functional teams to address specific change initiatives, bringing together diverse perspectives and expertise.
    • Empowerment and Delegation: Empower employees to take on new responsibilities and make decisions within their areas of expertise.
    • Streamlined Processes: Review and streamline decision-making processes to ensure efficiency and responsiveness.
  4. Prioritize Diversity and Inclusion:

    • Cultural Sensitivity Training: Provide cultural sensitivity training to all employees to enhance understanding and appreciation of Alaska Native values and perspectives.
    • Diversity and Inclusion Initiatives: Implement initiatives to promote diversity and inclusion at all levels of the organization.
    • Representation and Leadership: Ensure that Alaska Native people are represented in leadership roles and decision-making processes.

5. Basis of Recommendations

These recommendations are based on a comprehensive understanding of the case study and consider the following factors:

  • Core competencies and consistency with mission: The recommendations align with SCF's mission to provide high-quality healthcare to Alaska Native people while respecting its unique cultural values.
  • External customers and internal clients: The recommendations focus on improving patient care, enhancing employee engagement, and ensuring the long-term sustainability of SCF.
  • Competitors: The recommendations aim to position SCF as a leading healthcare provider in Alaska, capable of adapting to the changing healthcare landscape and attracting and retaining talented employees.
  • Attractiveness ' quantitative measures: The recommendations are expected to improve operational efficiency, reduce costs, and enhance patient satisfaction, ultimately leading to improved financial performance.
  • Assumptions: The recommendations assume that SCF's leadership is committed to change, that employees are willing to embrace new approaches, and that the organization has the resources to implement the proposed initiatives.

6. Conclusion

By embracing a culture of change, leveraging technology and innovation, strengthening its organizational structure, and prioritizing diversity and inclusion, SCF can successfully navigate the challenges of the evolving healthcare landscape while staying true to its mission and values. This approach will foster a more engaged and empowered workforce, improve patient care, and ensure the long-term sustainability of the organization.

7. Discussion

Alternatives:

  • Status quo: Continuing with the current approach could lead to further stagnation and a decline in SCF's competitiveness.
  • Rapid implementation: A more rapid implementation of change could lead to increased resistance and potential disruption to operations.

Risks:

  • Resistance to change: Overcoming resistance to change will require careful communication, stakeholder engagement, and a willingness to address concerns.
  • Resource constraints: Implementing the recommendations will require significant resources, both financial and human.
  • Unforeseen challenges: The changing healthcare landscape presents unforeseen challenges that may require adjustments to the implementation plan.

Key Assumptions:

  • SCF's leadership is committed to change and willing to invest the necessary resources.
  • Employees are open to embracing new approaches and contributing to the change process.
  • The organization has the capacity to adapt to the evolving healthcare landscape and remain competitive.

8. Next Steps

  1. Develop a comprehensive change management plan: This plan should outline the specific initiatives, timelines, and resources required for implementation.
  2. Engage key stakeholders: Communicate the need for change and involve stakeholders in the planning and implementation process.
  3. Pilot test new initiatives: Implement pilot programs to test new approaches and gather feedback before widespread adoption.
  4. Monitor progress and make adjustments: Continuously monitor the progress of change initiatives and make adjustments as needed.
  5. Celebrate successes and recognize contributions: Acknowledge and celebrate the achievements of employees and teams involved in the change process.

By taking these steps, SCF can successfully navigate the challenges of change and emerge as a stronger, more resilient organization, better equipped to serve its patients and fulfill its mission.

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Case Description

This case focuses on succession planning for Southcentral Foundation's (SCF) long-time president and CEO, Katherine Gottlieb. The case opens with Gottlieb reflecting on a succession planning meeting with SCF's Board of Directors and on her twenty year leadership trajectory. It then transitions to provide information about the American Indian and Alaska Native (AIAIN) health care system and outlines SCF's mission, vision, and key tenants of the organization's culture: customer-ownership, core concepts and continuous improvement. After a subsequent section on SCF's approach to governance and workforce development, the case concludes with Gottlieb's main considerations in selecting the next CEO. Gottlieb is an extraordinary leader who has defined SCF's vision, mission and unique organizational culture for over two decades. Students will consider the challenges a new leader may face in sustaining the existing culture when Gottlieb retires, evaluate the benefits and pitfalls of choosing a homegrown versus external successor for the CEO position, and consider qualities that SCF's next leader must embody.

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