Transformational CEOs Create an Environment for Excellence

Friday, February 19, 2010 by John Latham
While they are often popular icons of industry, narcissistic leaders are the opposite of the transformational CEOs in our study. Michael Maccoby notes "narcissistic leaders can be poor listeners, sensitive to criticism, lacking in empathy and 'relentless and ruthless in their pursuit of victory.'" The transformational CEOs in our study were excellent listeners, collaborative - exploring many perspectives, were empathetic and were not motivated by personal recognition for their achievements. 
 
Transformational CEOs are humble and less motivated by a desire to be recognized for their personal achievements than other effective senior leaders. They are motivated to make the overall organization successful. When asked what was most satisfying aspect of leading organizational change to create a high performing organization all 14 participants in a recent study told stories of how the people in the organization had accomplished something extraordinary. They were motivated to help enable the accomplishments of their team to better serve the customers, patients, students, etc.  
 
The low need for personal recognition combined with other leader motivations and approaches such as low desire for sole responsibility, a collaborative leadership model and a systems thinking approach, create an environment for synergistic problem solving and creative solutions and strategies for sustaining high performance. These approaches to leadership eventually resulted in organizational culture change and the embedding of teamwork throughout the organization culture. Teamwork was the most common organizational culture value identified by most of the participating CEOs.  
 
This post is the last in a series of the seven differentiating factors that make CEOs who have led Baldrige-based organization transformation different from other effective leaders.  

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Instant Success vs. Delayed Success?

Thursday, October 15, 2009 by Milan Larson

In a recent conversation with a professional colleague we were discussing the reality that sometimes instant success can lead to non-sustainable organizational change.  This colleague was speaking from his own experience based on his organization receiving the Baldrige Award on the first attempt.  Since then he has had the opportunity to visit with other BA recipients who did not receive the award on their first attempt, but rather had to keep improving their processes over time to eventually receive the award.  As my colleague compares his own organization's current culture and openness to new ideas, he finds the other employees in the organization are over confident in their success and therefore less open to continuous change.  Yet, the other organizations that had to work harder to achieve their success seem to have a culture that embraces continuous process improvement.  Their longer journey to success for the other organizations has created a collaborative leadership model that leads to long-term organizational transformation.  

So what do you say...in order for real transformation to seep into an organization's culture, is it better for organizations to achieve instant success or delayed success?

Employee Engagement Strategy: Building Trust

Saturday, September 12, 2009 by Chuck Appleby

East Alabama Medical Center  - Building Trust...One Employee at a Time

In 1983 when Terry Andrus became the President of East Alabama Medical Center (EAMC) in Opelika, Alabama, it was known as “a place where you only go to die.”   Financially troubled when Andrus arrived, he set about to put the hospital on a sound financial basis…to get the business and financial processes on track and to increase the operating margin by adjusting the fee structure.  He began improving organizational performance; he succeeded in getting the hospital out of fiscal hot water.  And over time he began to make progress on deeper problems...the less than stellar patient satisfaction statistics.

He began almost immediately practicing a leadership philosophy known as Management by Walking Around (MBWA)--an early employee engagement strategy. To this day, he walks around the hospital every morning on his way to his office.  He spends time every day stopping by to talk with folks.  People were suspicious at first. He began to get to know people…he listened to their challenges at work; he listened to their joys and fears at home.

Through his MBWA, he began to take note of challenges that people were facing in doing their job.  He listened and he acted.  He developed a collaborative leadership model.  Soon, a culture evolved of engaging employees to solve problems…it became an environment where managers listened to their employees.  Andrus and his colleagues focused on improving the patient experience in the hospital.  They created an operating philosophy that directly linked the patient experience to the employee experience.  Employees who were treated well would in turn treat customers well.  The patient experience began to improve dramatically.  A customer service code entitled What we Expect from Every Employee was adopted that outlined every employee’s commitment to the patients:

  • Assist people in finding their way; escort them to their destination if necessary
  • Greet others in hallways, elevators and workstations with a kind word or smile.
  • End each encounter with a warm and positive smile.
  • Anticipate patients’ needs so they will not have to use their call lights.Listen carefully; do not interrupt; give other people your full attention.  

Customer service forums were created.  Humorous videos were used in training courses…to highlight good, bad, and ugly customer service practices.  Patient satisfaction scores rose dramatically.  At about the same time, the hospital adopted a quality management program.  Seeking best practices from other hospitals and educating employees in high performance practices is a key part of the campaign. 

In 2001, EAMC was the first public organization to get on Fortune Magazine’s “100 Best Companies to Work For” list.  In 2002, it was #18 on the list.   In May 2005, they were named the top performer in Alabama (Alabama Quality Assurance Foundation). Today,  EAMC’s patient satisfaction scores are in the 95-99th percentile. They have achieved sustainable excellence.

Last year, I told my friend Mike about the hospital.  With a big smile on his face, Mike told me that he had admitted his ailing father to East Alabama Medical Center the week prior.   On his third day at the hospital, walking thru the lobby on his way to his father’s room, he felt a tap on his shoulder.  He turned, and a woman asked: “Mr. Mears how’s your dad.”  My friend was in awe as he told me the story.  Never had he received such care and attention in a hospital.  He went on to tell me that the woman who greeted him had checked him into the hospital two days earlier. 

My friend’s story demonstrated a simple fact.  Showing that you care about your employees—Terry Andrus’ morning walks thru the hospital—can build a tremendous reservoir of trust which can heal very sick organizations...even at places where “you only go to die."