How matters more than most leaders thought.
Corporate America is changing. Business leaders are realizing that they need to think beyond the bottom line.
Some investors are pushing back but what they might not realize yet is companies can do even better when they consider the social and environmental impact in their policies and business practices.
Haven Healthcare is the new healthcare company formed by Chase, Amazon and Berkshire Hathaway that is led by Atul Gwande MD. Dr. Gwande has been sharing his experiences, thoughts and insights about the cost and quality of healthcare in his books and articles for more than a decade.
Since formation, the company has been working to understand the needs of their patient population so that they can “create new solutions and work to change systems, technologies, contracts, policy, and whatever else is in the way of better health care.”
The “whatever else” in this case likely refers to the way American Corporations have focused solely on the bottom line. It should come as no surprise to any of us that Jamie Dimon, CEO of Chase is one of the leaders championing this change.
He is likely getting some good data and management insights to support his position. Hopefully we’ll learn more about that when the Forbes article is published next month. Until then, you might want to check out this book.
Dying for a Paycheck
We’re likely going to hear about some of the work published by Stanford Professor, Jeffrey Pfeffer.
In Dying for a Paycheck, he shares countless stories and stats about the management practices that “literally sicken and sometimes kill employees” and that also negatively impact productivity and the bottom line. Wellness programs can’t compensate for the fundamental issues that exists in many workplaces and unfortunately, are not bending the healthcare cost curve as expected.
Researchers in Denmark are reportedly using prescription drug data to draw correlations between prescription drug use and the effects of entrepreneurship, organizational change, compensation and more.
My guess is that Haven is using their medical data to investigate the policies and business practices of the operating companies and drawing similar types of insights. It could be game changing for Americans and the healthcare industry.
Times change, we need to change as well.
~ Nelson Mendela
A lot of this might seem like common sense, but without data it is harder to convince people change is necessary.
I was an online learning provider during the dot com boom/bust days. We helped clients enhance their operations while providing a path for a brighter future for their employees. How you ask?
Our training solution provided the much needed training to those responsible for the revenue cycle and financial management of healthcare organizations. Most had never received formal training on the systems or best practices which from a financial perspective is a recipe for disaster.
Staffing decisions are emotional but became so much easier with data about the time spent on course work, modules completed and assessment results – all stats we needed to report as a CPE provider.
We enrolled everyone in their required training modules and gave them time on the job to complete the course work. Some just didn’t complete all of their modules and not surprisingly, they underperformed in those areas of their job. It was a clear indication that they had no interest in the work.
Rather than terminating their employment, it was my opportunity to start a conversation about the right career path for them. There are really only three career options:
1/ Develop functional depth
2/ Transition to a cross functional role
3/ Retrain for something entirely new
Even though the organization had less than 100 people, we were able to offer all of these options within the organization and financially, we had some of the best years.
Investments in fundamentals and people pay off in companies of all sizes.
Training investments help people perform better on the job and prepare for a brighter future. Many of the people who successful completed our courses have already transitioned into new jobs. They didn’t have to experience the stress of having their job eliminated as some are experiencing now.
Industry leaders need to be making these types of fundamental investments to be profitable and accountable to all constituents going forward. Those leading in a strong viking and victim culture such as in law, finance and tech might find it harder to make the mental shift but it is time for change.