Governance & Leadership

  • Building a Culture for the Future at Palomar Health System

    We are at a unique time in the provision of healthcare in America with changes taxing fundamental structures that have been built to meet client and community needs over the past fifty years.  Staff and physicians’ ability to respond to change in meaningful and timely ways to address their environment have markedly impacted health systems’ ability to operate in an effective manner.  The key to organizational success in the future will be based on how an entity is able to create and manage a focused, nimble, forward thinking and accountable culture.  For culture serves as the foundation to achieve the organization’s mission, vision and strategic goals.   As the saying goes, culture eats strategy for breakfast. Mr. Michael Covert is a proven and recognized national leader in the healthcare industry with extensive and progressive success generating organic and acquisitive growth of healthcare systems, turning around under performing businesses, developing forward-thinking enterprise strategy, and creating industry-leading efficiencies in hospital operations.  During his tenure as CEO, Palomar Health achieved its purpose in re-positioning its culture to compete in an extremely challenging health care environment within a 12 to 16-month period of time.  This case study outlines in detail how Michael lead the transformation.

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  • Achieving Organization Agility Through Decision Rights and Governance

    Proper organizational structure is one of the most critical enablers to any successful strategy implementation – but it is only one part.  Clarity in decisions rights – who gets to decide what – and the governance processes that support those decision rights – are fundamental to nimble executive management and allowing the organization structure and strategy implementation to work as designed.   Often, it is more important than organization structure itself.  We see a bias to believe that altering the structure alone will have a profound impact on performance, efficiency, culture and competence.  To create true agility, companies must look beyond just structure.  We find the best organizations are those that focus less on the boxes and the lines.  What many organizations hope to accomplish by changing the organization structure is in fact better achieved by leaving the core foundation of structure intact and placing more organization emphasis toward two items: decisions rights and governance.  This paper explores both topics further.

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  • CEO Transitions – An updated road map for achieving success

    This paper provides a refreshed look at our thoughts on CEO Transitions and how to achieve success rapidly during the start of a new tenure.  Experience tells us that after the first 100 days the window on initiating effective change begins to close. As time passes, the entrenched status quo, the existing protocols and pecking order begin to calcify an organization’s desire for change.  The window for CEO success is limited – sometimes one, perhaps two years – depending on the state of the organization when he or she “takes charge.” The idea of a honeymoon period for a new CEO is an idea largely for romantics.  Time is ticking from the first day, whether you are a new CEO from the outside or promoted from within.  Even a CEO who inherits a stable and financially well performing organization, has an implied obligation to articulate the organization’s next vision, priorities and future path.

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  • Accelerating a Culture of “Servanthood”

    What is the one thing that would change the game at your hospital or system?   To answer that questions, thoughtful leaders often review the issues that keep them up at night, but many end up in a wistful hopefulness that they could promote a spirit of servanthood within their organization.  Read how to do it in this short paper from Dr. Galloway.

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  • Leadership in Transition

    Healthcare remains a transient business at the top with CEO turnover that is more than double the industry average and CEO tenure that typically is less than three and a half years.  What this means is that the clock is ticking from the moment the new CEO is announced.  Top executive transition is expensive – and there is lots at stake – CEO’s have a limited amount of time to show results before Boards become restless and an organization dynamic starts to change. The perceived 100 day honeymoon period is a notion for romantics.   For the new CEO, there are some clear and pointed action steps inside this short paper.

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  • The Staff Leader’s Surprising Impact

    Corporations have extraordinary infrastructure invested in their staff.  While the costs of these departments can be staggering, the pressure to be efficient is relentless.  Staff overhead is the first place consultants and new CEO’s look for reductions.  If you consider how much profit it takes to pay for a staff member, an incremental revenue analysis can be illuminating.  An organization with a healthy 40% contribution margin still has to generate an additional $200,000 in revenue to break even on an $80,000 salaried employee – not including benefits. Learn more and down load the entire paper.

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