1. From discord to symphony? A case study of strategic reorientation 31. Annual EAIR Forum, Vilnius, 23.-26. August 2009 Dr. Jürgen Deeg Kirsten Hoeper

2. Overview Case Study Hannover Medical School 3 Stages: - State of discord - Turnaround – Strategic Reorientation - Results Key factors of strategic reorientation

3. Organisation Structure: Integrative Model - Hannover Medical School - Supervisory Board Executive Board President Department Research and Teaching 18 Centres with 70 Clinics and Institutes Academic Senate Internal Clinical Advisory Board Vice-president Department Patient Care Vice-president Department Economics and Administration

4. Development of Crisis at Hannover Medical School Amount Mio € t Successful Turnaround Economical Crisis 2003 40 Mio 20 Mio 1997 0 Time frame?

5. Major causes Fulltime position of management without structural independence Lack of profile in research and medical facility Lack of cost awareness, economic reasoning and behaviour of staff No transparency between income, expenses, and output due to an insufficient controlling

6. Turnaround – Strategic Reorientation Professionalization of Management Management Characteristics20032008 Full Time PositionYes Focus exclusively on ManagementYes Managerial expertise and leadership skillsNoYes Self-conception as a professionalYes Structural independenceNoYes 6-year cycle with re-electionYes Based on Nickel, S. & Ziegele, F. (2006), pp. 2-7

7. Turnaround – Strategic Reorientation Cultivation of a competitive profile Characteristics of HEIsHannover Medical School Experts as SolistsExperts as Team Players Dominance of DisciplinesClusters of Excellence Specializing of KnowledgeDistinctive Profile Loose CouplingInternal Networking Characteristics of HEIs in contrast

8. Results (I) Development of Grant Acquisition and Impact Factor

9. Results (II) Development of Net Profit of the year

10. Key factors of strategic reorientation

11. Employee Attitude Survey Overall Concept and Business Objective Administrative staff Physician Scientist 1 2 3 Question 1: I am informed about concept and business objective of the institution Question 2: I am informed about concept and business objective of my Department Question 3: In our Department, we regulary get information about concept and business objective of the institution Not true true

12. Hierarchic Structure Hospital and Research Department Head (= Medical Director = Scientist) Senior Physician (= Assistant Medical Director = Scientist) Resident Physician (= Scientist) Hierarchy Hospital Department Level Senior Physician (= Scientist) Resident Physician (= Scientist) Biologist etc. Hierarchy Research Department Level Department Head (= Medical Director = Scientist)

13. Impact of increased governance

14. Conclusions

15. Most important changes: professionalization of management with dual qualification and profiling Quick decision making process and adaptation to a changing environment Changing definition of HEIs Effects on academic freedom

16. Final Note The inevitability of changes „I don‘t know, whether things get better if they change, but I know that things have to change in order to get better. “ Georg Christoph Lichtenberg (1742-1799) German Philosopher

17. Thank you for your attention!