MHA FPX 5040 Assessment 3 Case Study Analysis – Part 2

Student Name

Capella University

MHA-FPX 5040 Health Administration Change Leadership

Prof. Name:

Date

Introduction

Tufts-NEMC faced a crisis. The organization was unsure how to meet its financial obligations, such as payroll. Insurance contracts were below the required reimbursement rates, turnover was high, and there was a lack of key leadership. They needed someone to guide them out of this crisis. Ellen Zane was hired to steer the organization out of its difficulties and realign its overall strategy.

Tufts-NEMC was experiencing a period of transition, bringing many uncertainties. The previous five years involved a merger and separation that led to multiple financial losses for the organization. These complexities required Ellen’s attention. Financial losses were ongoing, with a 24% reduction in facility discharges and average length of stay between 1991-1996 (Ingols & Brem, 2016). The organization also struggled to recruit clinical staff, unable to compete with larger local competitors. These challenges were exacerbated by the absence of a strong leadership team to address these issues. As healthcare organizations strive to improve their performance and quality outcomes, they often encounter barriers that can impair progress or derail efforts altogether. Healthcare leaders must identify and remove these barriers to drive performance improvement (Rubino, 2020).

Structures and Systems

Ellen had a challenging task: to rebuild the organization’s financial standing and overall structure. Organizational structure aligns and relates parts of an organization to achieve maximum performance. The chosen structure affects an organization’s success in carrying out its strategy and objectives. Organizational structure is the method by which work flows through an organization, allowing groups to work together within their individual functions to manage tasks (Society for Human Resource Management, n.d.).

Initially, Ellen operated under a hierarchical organizational structure, possibly due to the urgency of making decisions to move the organization out of crisis. She needed to rebuild key functional departments and quickly assemble a team to meet these goals. A functional organizational structure is a traditional hierarchy that many companies, especially larger corporations, follow. This system features specialized divisions such as marketing, finance, sales, human resources, and operations (Levinson, 2018). Ellen quickly terminated seven senior managers, even against the wishes of board members.

Ellen prided herself on hiring the right people for the job. She knew she needed a strong team and developed a strategy to recruit top talent. Strategic thinking begins as an individual intellectual process, facilitated by experience, perspective, and skills, and uses methods of intellectual analysis to provide a pathway for the organization’s future success (Rubino, 2020). Ellen managed up, meaning she did not take credit for changes or positive outcomes but empowered her teams and gave them credit for accomplishments. She functioned as a transformational leader, holding town hall meetings to share her vision and build trust. She was transparent about the organization’s state and created synergy with the facility.

Powers at Play

Power naturally occurs in every organization. The saying “with great power comes great responsibility” holds true, especially in organizations. Responsibility increases with higher positions. Recognizing the influence of power on decision-making and responses to those decisions is crucial. Career development, particularly at high managerial and professional levels, depends on accumulating power to transform individual interests into activities that influence others (Zaleznik, n.d.).

Ellen had to use various forms of power during her time at Tufts-NEMC. She began with legitimate power, which comes from holding a position of authority in an organization, such as being a boss or key member of a leadership team. This power is recognized by employees in the organization (Abudi, 2020). Ellen had this level of power due to her position within the organization, enabling her to make decisions that impact change. However, other forms of power would reflect her ability to communicate a vision and influence others.

MHA FPX 5040 Assessment 3 Case Study Analysis – Part 2

Ellen often demonstrated her use of expert power. People with expert power perform critical tasks and are deemed indispensable. Their opinions, ideas, and decisions are highly regarded and influence others. Possession of expert power often leads to other sources of power, such as legitimate power (Sports Conflict Institute, n.d.). Ellen negotiated a lucrative deal for a new neurosurgery department, identified key individuals for replacement, and brought in people with expert power to rebuild key departments. She had proven her expertise even before joining the organization.

Referent power is defined as influence over others acquired from being well-liked or respected (Sowards, 2019). Referent power works in combination with other types of power and is often considered charisma. Ellen used this type of power to gain support for the organization’s vision. Her town and community physician meetings helped her gain support and rebuild trust. Her charisma in communication enabled her to affiliate with one of the state’s largest primary care groups.

Effects of Changes on Departments and Stakeholders

Ellen assessed the organization’s mission before making any changes to align with the mission and vision. Change is difficult, especially in an organization with financial challenges. Strategic thinking is essential before making changes, involving synthesizing and analyzing information to envision strategies and tactics needed to achieve a goal (Rubino, 2020). Ellen needed to understand the environment to make effective changes.

Ellen was transparent with both employees and the board from the start, despite expected resistance. She pushed for necessary leadership changes even against a board member’s opposition and showed the same financial data to the board and staff. This transparency resulted in support from both. Emails from employees indicated awareness of issues but a lack of clear information. Ellen’s transparency provided the needed information and garnered their support. She practiced authenticity, using stories and transparency to inspire her audience and personalize the organization’s message.

MHA FPX 5040 Assessment 3 Case Study Analysis – Part 2

Ellen referred to Tufts-NEMC’s culture as “Avis,” meaning the people tried harder. The staff was willing to work with her through changes, expressing love for the organization and a desire to improve it. She spoke with physicians who left the organization to understand their reasons and communicated changes and updates to other physicians. Her communication efforts improved recruiting and retention.

Ellen also worked to strengthen communications among the leadership team, reinforcing the need to follow the chain of command by involving the COO in meetings. This gave support and power to other leaders. She met with staff at various hours and levels to create a sense of inclusivity and thanked them for attending meetings, communicating gratitude and teamwork.

Effects of Communications on Change Implementation

Ellen used multiple methods to communicate changes at various organizational levels. She clearly conveyed the urgency of the situation to everyone, avoiding complacency by being transparent about the organization’s dire state (Kotter, 2012). This method alerts everyone to the need for change.

She communicated a vision and gained support to implement it. Town meetings worked so well they are now held twice a year. Frequent emails updated staff on the organization’s financial standing, keeping employees engaged. Emails also communicated delays in the length of stay to remove barriers and improve overall processes. Leadership used the collected data to address barriers.

Conclusion

Change is difficult, especially during uncertain times. It is an ongoing process in organizations, constantly seeking opportunities, identifying initiatives, and completing them efficiently. Change involves searching, doing, learning, and modifying and has become pervasive and persistent (Hodges, 2016). Ellen’s success at Tufts-NEMC was primarily due to her ability to inspire others and lead with integrity and honesty. Her expertise in organizational transformation was crucial, but her ability to sell the vision for the organization was essential.

References

Abudi, G. (2020, September 22). The 5 Types of Power in Leadership. Retrieved from Quickbase: https://www.quickbase.com/blog/the-5-types-of-power-in-leadership

Hodges, J. (2016). Managing and Leading People Through Organizational Change. Philadelphia: Kogan Page.

Ingols, C., & Brem, L. (2016). Case Study 5. Retrieved from Capella University: https://courserooma.capella.edu/bbcswebdav/institution/MHA-FPX/MHAFPX5040/210700/Course_Files/cf_case_study-leading_change_at_Tufts-NEMC.pdf

Kotter, J. (2012). Leading Change. Boston: Harvard Business Review Press.

Levinson, C. (2018, June 11). What are organizational systems? Retrieved from BizFluent: https://bizfluent.com/info-8403547-organizational-systems.html

Rubino, L. (2020). New Leadership for Today’s Health Care Professionals Concepts and Cases. Burlington: Jones & Bartlett Learning.

Society for Human Resource Management. (n.d.). Understanding Organizational Structures. Retrieved from Society for Human Resources Management: https://www.shrm.org/resourcesandtools/tools-andsamples/toolkits/pages/understandingorganizationalstructures.aspx