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Leadership Styles In Healthcare Helping or Hindering Our Ability To Bend The Cost Curve?
Bonnie Blakley, 3S Health Saskatchewan
Brent Pederson, Hay Group
Tues, June 3, 2014
1:45 – 3:15 (90 min)
2 © 2014 Hay Group. All Rights Reserved
Agenda & Timeframes…
Timeframe Agenda Item
1 1:45-1:55 (10) Agenda & Context
2 1:55-2:25 (30) The 6 Leadership Styles: An Appetizer
3 2:25-2:35 (10) Self-Assessment: Your Guess-timate
4 2:35-2:50 (15) Healthcare Data & Benchmarks: Analysis &
Discussion
5 2:50-3:05 (15) Application to LEADS…and Lean
6 3:05-3:15 (10) Summary: Global Trivia Challenge
3 © 2014 Hay Group. All Rights Reserved
Who is HayGroup?
88 Offices in 47 countries
Top 50 Global Consulting
Firm
#6 Thought Leadership
#1 Leadership
Development
4 © 2014 Hay Group. All Rights Reserved
A Sask. Health Care Lean Leader is?
Trained as a Lean Leader Studied Lean Management System
Leads as a Lean Leader
5 © 2014 Hay Group. All Rights Reserved
Healthcare Sector In Saskatchewan
Saskatchewan Healthcare…
Serves province of Saskatchewan (1.2 million people)
Healthcare budget: $4.84B (2013)
13 Regions + Saskatchewan Cancer Agency + eHealth +
3sHealth
Governance: Ministry of Health, Board of Directors for each
region, Region CEOs and executives
Urban systems routinely running at 110-115% capacity
Very politically sensitive area in Sask.
Challenges…
Rapidly growing economy and population – more growth in past
8 years than in previous 80!
Determination to bend the cost curve
Resource constrained, 95% unionized
Major Initiatives…
Patient-First & Lean process improvements
3sHealth – 8 business cases for improved quality and savings
6 © 2014 Hay Group. All Rights Reserved
The 6 Leadership Styles: An Appetizer
8 © 2014 Hay Group. All Rights Reserved
Competencies Leadership
Styles 70%
Employee Engagement
30% Results
The Science of
Leadership
How Leaders Drive Results
Balanced
Scorecards /
Dashboards
9 © 2014 Hay Group. All Rights Reserved
The 6 Leadership Styles
10 © 2014 Hay Group. All Rights Reserved
Leadership Styles
Leadership
Style
Characteristics
Directive
Visionary
Affiliative
Participative
Pacesetting
Coaching
11 © 2014 Hay Group. All Rights Reserved
Leadership Styles: Long Term Impact on Engagement
Leadership
Style
Directive
Visionary
Affiliative
Participative
Pacesetting
Coaching
Impact on
Employee
Engagement
12 © 2014 Hay Group. All Rights Reserved
Leadership Styles in Action: Coach Carter
Which style(s) did you see?
Directive
Visionary
Affiliative
Participative
Pacesetting
Coaching
13 © 2014 Hay Group. All Rights Reserved
Leadership Styles
1. Research shows that managers make over 1,500 work-
related decisions per day
2. At times we have a day/week/month to plan our
approach but more often, decisions on matters of
leadership style are made in real-time, in 1/100ths of a
second
3. Develop skill using your full toolbox
14 © 2014 Hay Group. All Rights Reserved
Leadership Styles…
“In studying strategic and operational plans at 35 companies… when
the managers used an overly directive approach, 58% of the time
plans failed to be implemented.
For managers who used more participative approaches in the
development and execution of the plan and priorities… plans were
implemented 96% of the time.”
- Dr. Daniel Goleman
15 © 2014 Hay Group. All Rights Reserved
The Leadership Toolbox: Leadership Styles
Key Learning Points:
How effective are we if we only have 1 tool?
The key to being effective as a leader is a broad repertoire of styles.
If our only tool is a hammer, everything looks like a nail !
The goal is to have a full toolbox and use the right tool for the job.
The ability to shift gears is critical
The more styles we have command over, the more situations we can
lead and manage effectively
16 © 2014 Hay Group. All Rights Reserved
Competencies Leadership
Styles 70%
Employee Engagement
30% Results
The Science of Leadership
How Leaders Drive Results
Balanced
Scorecards /
Dashboards
Are Your Leaders Using
the Optimal Mix of
Leadership Styles
to Optimize Results?
(…or are they over-relying on old-school approaches?)
Leadership Styles: Self-Assessment Your “Guess-timate”
19 © 2014 Hay Group. All Rights Reserved
Leadership Styles: Self-Assessment Your “Guess-timate”
10
9
8
7
6
5
4
3
2
1
Directive Visionary Affiliative Participative Pacesetting Coaching
20 © 2014 Hay Group. All Rights Reserved
Leadership Styles: Your Organization
10
9
8
7
6
5
4
3
2
1
Directive Visionary Affiliative Participative Pacesetting Coaching
Leadership Styles:
• Most leaders think they use 4-5 styles
• Most leaders actually use 1
22 © 2014 Hay Group. All Rights Reserved
Styles – Comparison – Sample Data
Styles Your DRs Experience Styles You Think You Deploy
Goal: To have 4+ styles in the
dominant area as seen by DRs
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One Leader’s Journey
Healthcare Data & Benchmarks: Analysis & Discussion
25 © 2014 Hay Group. All Rights Reserved
Leadership Styles of Various Team Leaders
100%
90
80
70
60
50
40
30
20
10
0 Dire
ctiv
e
Vis
ion
ary
Affilia
tive
Partic
ipativ
e
Pac
es
ettin
g
Co
ach
ing
8
41
60
77
29 24
43
56
63
12
46
54
29
61
74
69 64
51
Outstanding Typical Poor
Source: Hay Group
Top Teams Research
1998 – 2007
11 countries
120 SLTs
26 © 2014 Hay Group. All Rights Reserved
Leadership Styles: Healthcare Helping or Hindering?
100%
90
80
70
60
50
40
30
20
10
0 Dire
ctiv
e
Vis
ion
ary
Affilia
tive
Partic
ipativ
e
Pac
es
ettin
g
Co
ach
ing
Healthcare (n=719)
8
41
60
77
29 24
43
56
63
12
46
54
29
61
74
69 64
51
Outstanding Typical Poor
Source: Hay Group
Top Teams Research
1998 – 2007
11 countries
120 SLTs
40
60 59 60
48
52
27 © 2014 Hay Group. All Rights Reserved
Leadership Styles In Healthcare: Helping or Hindering?
How does the Leadership Styles profile...
Help healthcare?
Hinder healthcare?
28 © 2014 Hay Group. All Rights Reserved
SHR Data
29 © 2014 Hay Group. All Rights Reserved
Leadership Styles
100%
90
80
70
60
50
40
30
20
10
0 Dire
ctiv
e
Vis
ion
ary
Affilia
tive
Partic
ipativ
e
Pac
es
ettin
g
Co
ach
ing
Healthcare Sector
Mining Sector
8
41
60
77
29 24
43
56
63
12
46
54
29
61
74
69 64
51
Outstanding Typical Poor
Source: Hay Group
Top Teams Research
1998 – 2007
11 countries
120 SLTs
40
60 59 60
48
52
55
44 45
45
53
39
Applications to… LEADS…and Lean
31 © 2014 Hay Group. All Rights Reserved
Leads
Self
Engages
Others
Achieves
Results
Develop
Coalitions
Systems
Transformation
Leadership Styles & LEADS
32 © 2014 Hay Group. All Rights Reserved
Leadership Styles & LEADS For each column, check the 2 leadership styles that most support it
Leads
Self
Engages
Others
Achieves
Results
Develops
Coalitions
Systems Transformation
Directive
Visionary
Affiliative
Participative
Pacesetting
Coaching
33 © 2014 Hay Group. All Rights Reserved
Leadership Styles & Lean
Why/How it’s important in implementing Lean
Directive
Visionary
Affiliative
Participative
Pacesetting
Coaching
Global Research Trivia
35 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 1
Which style is most commonly associated with
being “old school”?
A. Affiliative
B. Directive
C. Pacesetting
36 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 2
Which styles are most commonly over-used by
people with technical backgrounds who are new
to leadership roles?
A. Coaching & Visionary
B. Affiliative & Participative
C. Pacesetting & Directive
37 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 3
Which style is perhaps the most emphasized in
books, articles, conferences, today?
A. Participative
B. Directive
C. Affiliative
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Global Research Trivia: Question 4
Number of styles most leaders THINK they use
regularly?
A. 3-4
B. 4-5
C. 5-6
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Global Research Trivia: Question 5
Number of styles most leaders ACTUALLY use
regularly
A. 1
B. 2
C. 3
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Global Research Trivia: Question 6
Number of styles to have command over to be
considered leading a world-class level
A. 3+
B. 4+
C. 5+
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Global Research Trivia: Question 7
Use of this style is most positively correlated to
higher levels of bonus pay
A. Visionary
B. Directive
C. Participative
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Global Research Trivia: Question 8
Use of this style is negatively correlated to high
levels of bonus pay
A. Visionary
B. Directive
C. Participative
43 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 9
Among male leaders, which 3 styles are most
common?
A. Visionary, Participative, Coaching
B. Visionary, Directive, Pacesetting
C. Visionary, Affiliative, Participative
44 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 10
Among female leaders, which 3 styles are most
common?
A. Visionary, Participative, Coaching
B. Visionary, Directive, Pacesetting
C. Visionary, Affiliative, Participative
45 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 11
Among 30 industries, which of the following 3
industries scored highest on directiveness?
A. Oil & Gas, Mining, Construction
B. Government, Healthcare, Insurance
C. Financial Services, Utilities, Construction
46 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 12
Among 30 industries, which of the following 3
industries scored highest on affiliative and
participative?
A. Oil & Gas, Mining, Construction
B. Government, Healthcare, Insurance
C. Financial Services, Utilities, Construction
47 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 13
What are the 2 most commonly used styles in
parenting?
A. Visionary & Coaching
B. Participative & Pacesetting
C. Directive & Affiliative
48 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 14
What 2 styles are most helpful in time of change?
A. Directive & Affiliative
B. Pacesetting & Coaching
C. Visionary & Participative
49 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 15
_______ decreases with age, and _______
increases with age.
A. Participative & Directive
B. Coaching & Pacesetting
C. Directive & Pacesetting
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Global Research Trivia: Question 16
Most common style used at senior levels?
A. Visionary
B. Directive
C. Participative
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In education, high performing principals used ___ styles,
while lower performing ones used ___ styles.
A. 5, 1
B. 4, 1
C. 3, 1
Global Research Trivia: Question 17
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In healthcare, top performing nurse managers tend to have
command over ____ leadership styles.
A. 3
B. 4
C. 5
Global Research Trivia: Question 18
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Leadership styles explain ____ of employee engagement.
A. 30%
B. 50%
C. 70%
Global Research Trivia: Question 19
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Employee engagement accounts for ____ of the results
A. 30%
B. 50%
C. 70%
Global Research Trivia: Question 20
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Global Research Trivia: Question 21
The 2 leadership styles most strongly related to
negative workplace climates?
A. Directive & Pacesetting
B. Visionary & Participative
C. Affiliative & Coaching
56 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Question 22
The 2 leadership styles most strong related to
positive workplace climates?
A. Directive & Visionary
B. Participative & Coaching
C. Affiliative & Pacesetting
57 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Bonus Question
In which of the following sectors do leaders
consistently tend to over-rate themselves?
A. Healthcare
B. Mining
C. Financial Services
D. Oil & Gas
58 © 2014 Hay Group. All Rights Reserved
Global Research Trivia: Scoring
If you scored…
A. 10 or less = we present this often, come back again
B. 11-16 = not bad
C. 16-22 = you’re hired
The End
Brent Pederson
Director of Operations
Hay Group
1.306.359.0181
Bonnie Blakley
Vice President, People & Culture
3s Health
1.306.347.5570
60 © 2014 Hay Group. All Rights Reserved
Directive
Primary Objective: Immediate Compliance
Bottom line oriented
A “tell” approach
Expects compliance
Control is tight
May prefer not to explain “why”
May rely on negative, corrective feedback
Motivates by stating the negative consequences of non-compliance
Useful in high pressure, crisis situations, or short bursts
Generally correlated negatively to engagement
“Just do it the way I tell you to.”
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Visionary
Primary Objective: Providing long-term direction and vision
Develops and articulates a clear vision
Solicits employee perspective on the vision
Sees selling the vision as key
Persuades employees by explaining the “whys” in terms of employees’ or
the organization’s long-term interests
Keeps people connected to the big picture
Helps people see how their job/role contributes to something larger
Sets standards and monitors performance in relation to the larger vision
Uses a balance of positive and negative feedback to motivate
Contains a certain inherent power to motivate and inspire people
Generally positively correlated to engagement
“Let me tell you where we’re going as a team.”
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Affiliative
Primary Objective: Creating Harmony
Leadership through relationship
Makes small talk before diving into business
Remembers the little things about people
Emphasizes promoting friendly interactions
May place more emphasis on addressing employees’ personal needs
than on goals and standards
Pays attention to, and cares for, “the whole person”
May avoid/downplay performance-related confrontations
Rewards personal characteristics more than job performance
Mixed correlation with engagement
“People first, task second.”
63 © 2014 Hay Group. All Rights Reserved
Participative
Primary Objective: Building commitment and generating new ideas
An “ask” approach
Powerful as it gives people a voice and input
Invites employees to participate in the development of decisions
Trusts that employees can develop the appropriate direction for
themselves and the organization
May hold many meetings and listens to employees’ concerns
Highly independent professionals may insist on this approach
Can create an expectation that everyone will be consulted on everything
and everything will be actioned
Can mask a leader’s indecision
Rewards adequate performance; rarely gives negative feedback
Generally correlated positively with engagement
“Let’s decide together.”
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Pacesetting
Primary Objective: Accomplishing tasks to high standards of excellence
Believes in leading by example
Watch me and do as I do
Has little sympathy/patience for poor performance
Has high standards, and expects others to know the rationale
May be apprehensive about delegating
May take responsibility away if high performance is not forthcoming
Rescues the situation (takes over) or gives detailed task instruction when
employees experience difficulties
Co-ordinates with others as it impacts immediate task completion
The trap many new leaders fall into
Good in specific instances and short bursts
Generally correlated negatively with engagement
“If you can’t do it right (and fast), I’ll do it myself.”
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Coaching
Primary Objective: Long-term development of others
Sees work as a way to develop/grow/stretch people
Encourages/pushes employees to establish long-range development goals
Reaches agreement with employees on the manager’s and employees’ roles
in the development process
Very deliberate about exposing people to specific work assignments to
grow/stretch/challenge them
Will push people out of their comfort zone: balanced feedback
Good to build-in time to debrief, capture lessons learned, what worked/didn’t
May trade off immediate standards of performance for long-term development
Powerful as it takes a real interest in seeing people grow
Generally positively correlated to engagement
“What did you learn?”