Issues for CEO’s in Healthcare Professor Stan Capp Chief Executive Southern Health School of Management - RMIT Tuesday 9 th December 2003

“In order to prosper you must survive”

The origins of “survival” 1985 The 1.5% cut 1992 Larger cuts by the new State Government 1993 Casemix funding

Casemix Funding “Will your hospital get rich from the new funding system or are you a dead duck? Rate your own survival probability…..” Dr John Paterson, Secretary, Dept Health and Community Services June 1993

Key Issue for CEO’s Survival - For organisations - For CEO’s

The key survival skills are found in the word itself

S URVIVAL S trategy CEO’s must define with their Boards, staff and other key stakeholders what the reason is for the organisation to exist

Strategic planning process “Strategic Directions” Service Plans Operational (Site) Plans Unit Business Plans Individual Performance Plans Reporting Implementation

S U RVIVAL U nderstanding A deep understanding of the complex nature of health systems is fundamental to performing as a CEO

Understanding That the future of health services is more about the system of care than the acute phase of that care. That community based and ambulatory care will assume increasing prominence That the community demands increasing access to quality health services and wants to be involved in decision making about these services and their own personal care

Understanding That governance in health services has clinical as well as financial, social and safety dimensions. That WIES, VACS, PCPs, DRGs are not actually in the dictionary. That the most important part of management is in dealing with people.

SU R VIVAL R eality Sometimes you can get so caught up with your own issues that it can place your life out of balance. Taking a reality check every now and then places perspective on issues and better prepares your response.

Reality Reality means: Not assuming that the funding system will be changed overnight. Your priority building project may not get funded first time around. Sometimes you will be required to make some difficult choices that will not please everyone.

SUR V IVAL V ision This reflects how we want to be seen by the community. It is the vision that motivates, inspires and affirms the directions of the organisation.

Vision of Southern Health We will be an Australian leader in the delivery of integrated, high quality services that improve health status using all available resources to work in partnership with other service providers, consumers, community, government, educators and researchers.

Key Result Areas ACHIEVING OPERATIONAL EFFECTIVENESS LEADING IN INTEGRATED CARE DEVELOPING ORGANISATIONAL COMPETENCIES CREATING & MAINTAINING EFFECTIVE PARTNERSHIPS

SURV I VAL I nformation The greatest risk an organisation can have is not too little or too much information but the wrong information.

Information Information is needed to: Make decisions about how best to manage patient care Schedule and co-ordinate interactions between, services, resources and patients Capture the key measures of success Manage performance Inform strategic and operational planning

Information Information needs Vary depending upon where you are in the organisation or external to it Require prioritisation Require systems Require review Drive IT support rather than the reverse

SURVI V AL V alues Every activity that occurs within an organisation needs to reflect the values that are considered pivotal to success. Every decision and action needs to be traceable back to an organisational value.

Values of Southern Health We will: Put patients and clients first Treat everyone honestly and with respect Work together Recognise quality & achievement Be accountable Create a safe and enjoyable workplace Be adaptable Appreciate diversity & difference

SURVIV A L A ccountability While all within a health care organisation need to be accountable, none carry the ultimate accountability like the CEO.

Accountability Accountability for a multitude of matters, both strategic and operational, to : Board of Directors Minister Department of Human Services Community Staff

SURVIVA L L eadership The most important issue for a health service CEO is to effectively lead the organisation to realise its vision, live out its values and inspire the staff to commit to delivering a quality service.

Leadership Leadership development within organisations can greatly assist in the: Implementation of strategic directions Implementation of strategic directions Business and operational plans Business and operational plans Improving patient flow & systems Improving patient flow & systems People performance People performance Education & development plans Education & development plans

Leadership initiatives at Southern Health Ongoing executive “coaching” & interaction Ongoing executive “coaching” & interaction Change leaders program (Oct 01 to May 02). Change leaders program (Oct 01 to May 02). Emerging leaders program (Oct 02 to Jun 03). Emerging leaders program (Oct 02 to Jun 03). Nurse unit managers program (Feb to May 03) Nurse unit managers program (Feb to May 03) Registrar / HMO program (commences May 03) Registrar / HMO program (commences May 03) Further programs in planning. Further programs in planning.

Leadership programmes … aim to:  Improve the organisational capability.  Equip current “opinion” leaders to have maximum impact on the organisation.  Prepare potential leaders for leadership roles.

In Conclusion A positive outlook will overcome many of the challenges facing CEO’s in health care. When considering the survival kit outlined today, think about why it is that you are working in this system, the people you provide a service to and those with whom you work.

In Conclusion Hopefully that will bring you back tomorrow and make you a “survivor”.