Paul Levy Essay

How would you describe the situation bill inherited at the c only forMC? What challenges did he present? Why did previous turnround efforts fail? (4 points)Two unique merged cultures, Beth Israel Hospital and Deaconess Hospital merged in 1996 to become Beth Israel Deaconess ( legal tender). To compete with Partners, call in and a few different hospitals combined forces and formed C atomic number 18 chemical group Systems (CGS). Lacking leadership commitment, BID was in chaos and consistently post operating losses in millions of dollars per year. Additionally, although advised on numerous occasions, BID was inept in implementing restructuring plans and consequently had excessive employee turnover, which resulted in poor tolerant care.Succinct and expert advice to reorganize BID was never use. Although BID would mark to channel, execution was postponed or disregarded due to the myriad level of care and bureaucratic processes within each department, which appeared to functio n independently of one a nonher. unable to move forward, management was locked in mental prisons. Groupthink was common practice for devising essential business decisions, which resulted in escalation of commitment in continuing sometime(prenominal) practices and refusal to accept recommended flip-flops. BID could be referred to as egocentric as the musical arrangement maintained the placement quo.As President and CEO, impose was expected to make believe a rapid turnaround of the deteriorating financial condition of the hospital. He was excessively expected to stop the several year trend of flawed instruction execution of restructuring recommendations. Furtherto a greater extent, he was performanceing under intense scrutiny and pressure from many officials, including the Attorney Generals Office of the Commonwealth of Massachusetts, the BID notice of Directors (BOD) and the Board of Directors of the BID parent company, CGS.How did levy bump started in his new-make job? What were his objectives and what did he accomplish 1) prior to his kickoff day of work? 2) on his first day? 3) during his first week? (4 points)Before bill accepted the position, he made conditions for his employment.These conditions included that he be chartered before the Hunter Group Report was released, that the BOD be considerably reduced in size and that the BOD stay out of the day-after-day operations of the hospital. Even as he talked to the search squad, he knew the responsibilities and his birth abilities. bill wanted to be hired prior to the Hunter work so that he could use the account statement in agencys that he thought would be best. The second condition was to shrink the BOD from a 44-member group to a more-manageable group of 18 members, which was accomplished just a few months after levys appointment as CEO. The deuce-ace condition of employment, that the BOD remain out of the day-to-day operations, showed that he believed in a chain of command. impose clearly communicated any meeting amid board members and rung required prior approval.On his first day, he sent every employee of the hospital a memo that included A pact of an open administration A warning that the hospital had been stipulation this one last chance for a turnaround A promise to post the findings and recommendations of the Hunter Consulting Group Encouragement to employees to read and make comments regarding the report A promise that changes would be implemented and measured Warning of an infallible elimination of several hundred staff positions in the hospital A promise that the staff reductions would be carried out as humanely feasible and people would be treated with dignity and respect His expectation of sure-fire turnaround of BID because of the employees, their commitment, their strong perceive of teamwork, and their exponent to succeedIn his message, levy also conveyed that He considered all staff (not just happen upon players) to be team members Al l team members must share a common goal of carrying out the mission There is a sense of urgency The Attorney General of the Commonwealth of Massachusetts had legitimate trust and control over the future of BID lag would be held responsible for their actions impose would be open, honest and inclusive with information, even in the quality of bad intelligence agency High quality care was essential to BIDs future Together, the BID team could show the world victor bill created a sense of reality for employees whom previously had been told half-truths, lies or nonentity about the serious nature of BIDs problems. In doing so, levy gained buy-in from employees grateful that problems were being clearly identified by effective leadership. also on his first day, Levy shared his message with local news agencies, which accomplished among other things letting the community know that he considered buy-in from the staff critical to success. According to his daily calendar, Levy spent much of his first week meeting with BID staff.What (if anything) was distinctive about the way Levy went about formulating, announcing and implementing the recuperation plan? How did he overcome resistance? (3 points)Levys practice of speaking with staff likely induced his ability to gather as much information as possible regarding the ongoing mood and culture. This information was indispensablenessed to develop and implement a plan. Initially, his recovery plan had to include huge cost-saving initiatives. He had already set the arrange for a massive lay-off by posting the Hunter Report for all employees to read. Therefore, it was relatively easy for him to fire/permanently lay-off 150 people by the end of the month. After all, he was only doing what the experts recommended. Who could argue with that? At the alike(p) time, purchasing controls were implemented in an effort to reduce costs.The next week, he rolled out additional strategic efforts. His plan was three-fold regain a rep utation for quality patient care and maintain an academic status adopt some of the recommendations of the Hunter Group Report, implementing change and, analyze why previous restructure plans failed and why this new one would work. Another of Levys implementationplans was to promise low and deliver high. In other words, he knew the importance of meeting deadlines and plans by being conservative and not over-estimating. This practice is often referred to as sand-bagging and believed to be a useful tool. Levys intent was not to be deceitful rather, it is a way of keeping forward momentum by delivering good news.How did Levy acquire the problem of the BIDMCs curious inability to decide? (3 points)It was not until Levy came in and talked with the doctors and staff, really listening to each others problems and concerns that change could happen. Levy realized that the culture of BID played a operative office staff in the organization. People reacted and performed their jobs considering how they had performed their jobs in the past. The current structure and pecking order defined who the chiefs were and the importance of their aims. They were caught up in this psychic prison. Levy had to suffice them overcome it by making sure they realized that they were not pervert and that they just needed to be open to change. Levy tried to get to the underside of the human emotions for these chiefs and let them see the benefit of changes. He made sure to give credit but also expected results and toleration of the new strategic plan. While there is no indication as to which personnel were fired/laid-off, it was clear to the remaining staff that Levy was in charge and that slackers would not be tolerated. This is a powerful motivator (albeit via fear) to make pass resistance.Also prior to Levy, it seemed that committee meetings often resulted in groupthink. Levy knew that the chiefs were commonly involved in those meetings, and that there was now a tremendous need to see results from those meetings. In the past, no one spoke up at meetings. Many participants kept quiet instead of actually saying what they thought. Staff members were afraid to rock the boat. Once Levy came on board, many decisions and changes were implemented via steering committees instead of from the chiefs. This was a significant change in the stratified structure. No longer did all decisions and ideas come straight down from the foreman in the tower. This change allowed staff members to get involved and present ideas. Ultimately,it would be staff members whom had a key role in the implementation of turnaround plans. This empowerment of the staff led them to have less resistance toward change.In describing his leadership style, Levy speaks of the CEO as teacher. How has he defined that role? Why has he chosen to focus on it? What skills does it require? (3 points)Levys leadership style is a strategic facilitator, through maturation employee ownership by illuminating the nature of the problem and seeking their pastime in finding solutions. Levy believed it essential to build a burden management team that is in accord with the plan, mission and values and who are willing to assume risk in embracing change. The CEO role is to support the management team and remove those who are obstructionists. The byproduct is ameliorate decision-making and accountability. He uses peer pressure as an accountability tool so there is public acknowledgment of responsibility for specific tasks. By redirecting comments from naysayers, Levy places the onus on others to provide a solution for problems. Additionally, Levy understands the dynamics of each meeting and what can and cannot be accomplished in each.Levy used a human resources view in assessing various situations. He leveraged this framework while making a majority of his decisions. He precious feedback from his employees and kept them abreast of pertinent information, which resulted in efficient and satisfied employee s. Levy accomplished this literally by roaming the hospital with the intent on keen the staff in person. He would engage in conversations seeking suggestions for change in their occupational area and reassured skeptics that his plan for change would be successful. Levys efforts to include everyone in the day-to-day progress as well as helping employees find answers to their problems, made the work more satisfying to his employees.What did members of your team learn from completing this case?How might members of your team use this information in their current orfuture jobs?