In today’s fast-changing health care industry, succession planning has never been more important for hospitals and health systems who hope to not only compete, but to win over both leaders and patients

<p>
  In today&rsquo;s fast-changing health care industry, succession planning has
  never been more important for hospitals and health systems who hope to not
  only compete, but to win over both leaders and patients
</p>

<p>
  As the health care market continues to innovate to meet patient demands for
  quality and value, the need grows for talented leaders to pave the way.
  However, increasing turnover rates and a decreasing active workforce are
  creating a more competitive environment for organizations searching for new,
  highly qualified leaders.
</p>

<p>
  Organizations with a &lsquo;revolving door&rsquo; approach to filling
  leadership positions face serious risks, including a loss of bench strength,
  the erosion of organizational culture and the high financial cost of
  recruiting and replacing leaders. The health care organizations that are
  successful in the competition for talent -- and that avoid the costly practice
  of replacing lost leaders -- are the ones who have a solid plan in place for
  their internal talent.
</p>

<p>
  Succession planning as a practice began as a simple effort to identify which
  employees could move into which leadership roles, if needed. The practice has
  grown and evolved over time to include training and growing of talent, with
  progressive organizations already realizing benefits to their culture, their
  business and their daily operations.
</p>

<p>
  As you begin to develop a succession program of your own, there are three key
  areas to address: <strong>culture, operations/finance and people.</strong> In
  order to address each of these aspects, you must understand how each fit into
  a meaningful succession program, and how to successfully incorporate each into
  the program as a whole.
</p>

<h2>Culture.</h2>

<p>
  Culture plays a large role in succession planning. It is the responsibility of
  organizational leadership to drive the mission, vision and values &ndash; the
  key components of company culture. If there is no plan in place to transition
  to new leadership when the need arises, the scramble to fill those roles can
  be costly, and without an established strategy for moving new leaders into
  vacant roles, there is no way to ensure the company&rsquo;s culture will
  endure. To make succession planning a part of your culture, keep these things
  in mind:
</p>

<ul>
  <li>
    Establish shared values and talk frequently about the benefits of the
    program
  </li>
  <li>Be transparent with changes</li>
  <li>
    Attach succession planning explicitly to leadership development and
    strategic planning
  </li>
</ul>

<h2>Finance/Operations.</h2>

<p>
  For many Boards, the concept of investing in recruitment is easy to
  understand, but the costs go much deeper than professional fees. Today, the
  cost of replacing a CEO for a mid-size hospital can reach up to $300,000. At
  any leadership level, the true cost of replacing employees can be twice their
  base salaries (depending on total compensation, role and experience).
</p>

<p>
  Facing these financial risks, it makes sense to establish a program that
  supports and nurtures your top talent and eliminates the revolving door of
  costly recruitments. To demonstrate the need for a succession program to your
  Board, consider taking these steps:
</p>

<ul>
  <li>Create a succession plan that encompasses all levels of leadership</li>
  <li>
    Build in checkpoints, goals and ways to demonstrate return on investment
  </li>
  <li>Clearly establish that the program will take time to bring results</li>
</ul>

<h2>People.</h2>

<p>
  According to a 2018 Gallup Poll, 85 percent of employees are unhappy at work.
  Investing in employees is the best way to position your organization for
  success not only today, but in the future. A succession plan creates a story
  you can tell your employees &ndash; a story where they are valued, supported
  and developed throughout their career. Forward-thinking organizations
  recognize that building a program based on shared values allows you to invest
  in your team and to create a path to future success. The focus then shifts
  from filling open positions to acquiring the talent to bolster your
  organization&rsquo;s vision, goals and values.
</p>

<p>When creating a plan to support your people, remember these points:</p>

<ul>
  <li>
    Establish a clear guide for advancement gives team members a career path
  </li>
  <li>
    Communicate the reason for the succession plan prevents fear of the unknown
  </li>
  <li>
    Discuss the succession program during recruitment to build loyalty and
    encourage new team members to plan for internal growth
  </li>
</ul>

<p>
  In this challenging time of healthcare reform and a shrinking skilled
  workforce, planning for the future is more critical than ever &ndash; a good
  succession plan will save you time, money and talent, all valuable commodities
  in this increasingly competitive environment.
</p>

<p>
  For more succession planning advice from Mark Madden, a thought leader in the
  area of healthcare executive search, mentoring and succession planning,
  contact Mark Madden at (800) 209-8143 Ext. 64585 or email: <a
    href="mailto:mmadden@cejkasearch.com"
    >mmadden@cejkasearch.com</a
  >. Read Mark&#39;s white paper on;<a
    href="https://www.cejkasearch.com/docs/succession-planning.pdf"
    target="_blank"
    >strategic succession planning </a
  >for a more extensive overview.
</p>


Leadership Succession Planning: Three Key Areas You Must Address