LEADERSHIP DEVELOPMENT HIGHLY VALUED TO DRIVE ORGANIZATIONAL EXCELLENCE, BUT NOT COMMON PRACTICE L By Andrew R. McGill, PhD and Jennifer Yessis, PhD eadership development at all levels of healthcare organizations is widely recognized as a linchpin to success, but in the National Healthcare Leadership Index survey conducted by National Center for Healthcare Leadership (NCHL) in partnership with the National Research Corporation, many healthcare systems and hospitals were highly deficient in succession planning and talent management for top administrators compared to benchmarking organizations from outside of healthcare. In fact, the disparity for medical leaders and nurse leaders was even greater. The National Healthcare Leadership Index survey was developed and pilot tested in 2007, and is being implemented annually to healthcare systems and hospitals to raise awareness of leadership best practices and to provide these organizations with the ability to examine their relative strengths and opportunities with regard to leadership development. The individual system/hospital results can be compared to other healthcare organizations and non-healthcare Fortune 100 organizations. The 2008 National Healthcare Leadership Index survey will be sent out again this summer to all hospitals and health systems. The leadership survey includes 59 questions for hospital executives to respond in nine areas including Leadership Competencies, Governance, Diversity & Cultural Proficiency, Succession Planning/Talent Management, Recruitment & Selection, Leadership Learning & Development, Performance Management, Leadership Reward & Recognition, and Job Design/Work Systems. “These results underscore an important disparity in leadership development in healthcare,” NCHL President and CEO Marie E. Sinioris said. “First, the survey found that on a seven-point scale rating a succession planning process that incorporates talent management for leaders, healthcare administrators averaged 4.2 while leaders at top benchmarking, Fortune 100 organizations averaged 6.7. And through research in our demonstration projects, NCHL has learned that healthcare organizations benefit enormously when all members of the leadership team—physicians, nurses and administrators—are provided with leadership development and talent management, and that is an essential ingredient to achieving organizational excellence. These survey results are an excellent opportunity for health systems—as they seek to improve patient outcomes, quality and safety—to extend leadership development to their entire senior team members and at all levels of the organization.” Indeed, some healthcare systems with crossprofessional leadership programs already in place scored highly on the leadership survey. At one of the healthcare organizations performing exceptionally well on the leadership survey, suburban-Chicago-based Provena Health, the commitment to leadership has been in place for several years. “First and foremost, Provena has been conducting three Leadership Development Institutes each year to support leadership growth and share best practices among hundreds of leaders from across the system for the past five years now,” said Jill Sheehan, system director of organizational ®2008 NRC Picker 3-0608-A-3001 development at Provena. “More recently, we’ve been working to close the gaps between desirable and actual performance by evaluating our leaders on 10 leadership competency standards aligned to our values, which are central to our mission at Provena Health.” That theme was common among top performers. “It’s really been an emphasis on people, focus and strategy for clinical and administrative leaders across our system,” said Sharon Hardy, vice presidentorganizational effectiveness at Virtua Health System in New Jersey, another leading performer in the leadership survey. “It starts with people – hiring the best, creating a caring culture, linking mission and values first. Then we get to the rigor and process tools at Virtua University, certification, developing leadership, black belts (with process skills), strategic alignment, business development. But it always focuses on the people.” Overall, the survey showed that 17 percent of administrative leaders received “a great deal” of talent management compared with 6 percent for medical leaders and 9 percent for nursing leaders. Additionally, while 14 percent of administrators were provided with “a great deal”’ of succession planning, medical leaders received it 7 percent of the time and nursing leaders 8 percent. And while 18 percent of administrators participating in the survey used 360-degree feedback “a great deal” of the time that was true among 13 percent of nursing leaders and 6 percent of medical leaders. Table 1. Hospital Executive Responses to National Healthcare Leadership Index Question Average Hospital Score (1 – Not at All to 7 – A Great Deal) Succession plan for administrative staff Succession plan involving talent management at multiple levels Succession plan for nurse leadership 360 Degree Feedback for Administration Succession plan for medical leadership 360 Degree Feedback for Nursing Leadership 360 Degree Feedback for Medical Leadership 4.5 4.2 4.2 4.2 3.6 3.3 2.7 *Hospital executives were asked about the organization’s performance on each item from 1 (not at all) to 7 (a great deal) Organizations responding to the survey also said that despite their strong belief in the importance of succession planning, talent management, and 360degree feedback, the lack of financial resources, time, and senior management motivation could be barriers to implementing such programs, even though the benefits were incontrovertible. plan with many of our mid-level managers.” • “We have a lot of work to do in this area.” • “We say leadership development is important; but our actions do not match that. • “Leadership development is absolutely essential, “at this time the organization is financially unable to attend to leadership development.” In open-ended comments, some survey participants explained what happens when leadership training is left unattended: “One of the most important things NCHL is researching is increasing the effectiveness of senior leadership teams,” Sinioris said. “Not only will healthcare organization benefit greatly when all members of management receive leadership development, but the teams themselves benefit from the opportunity to work and grow together. • “We have in the past just promoted people to “fill spots” without training and we are paying the price of that now. We are in a remediation About the National Center for Healthcare Leadership The National Center for Healthcare Leadership (NCHL) is a not-for-profit organization that is an industry catalyst to assure the availability of accountable and transformational healthcare leadership for the 21st century. Its vision is to optimize the health of the public through leadership and organizational excellence. As the authoritative and objective source on healthcare leadership, NCHL conducts research on global best practices and tests new models for leadership excellence within its Leadership Excellence Networks (LENS). It provides innovative leadership development programs through the NCHL and GE Institute for Transformational Leadership and through collaborative relationships with other leading organizations. For more information please visit NCHL’s website at www. nchl.org.