Maximize Your NOI By Working Smarter, Not Harder

Maximize NOI by

Working Smarter, Not

Harder

Jill Haselman, CEO

Senior Living NOI

Earl Parker, COO

Commonwealth Assisted Living

Objectives: In one hour, you will…

► Engage in a groundbreaking case study, encompassing a unique industry partnership.

► Learn how to achieve NOI from a different operating perspective.

► See evidence of NOI drivers through actual company metrics.

► Understand why our industry paradigms are holding back exceptional bottom line results.

► Take away specific ideas, concepts, and techniques for reinventing the way we operate.

Here’s the Story

► Rapidly Growing Company (12 Years Old)

► New COO position created in Aug 2013

► Need for an overall plan to scale the company for growth– Identify and respond to barriers to achieve occupancy and

NOI targets.

– Build solid Regional and Home Office Support Team that was scalable for growth.

– Improve Resident and Staff Satisfaction.

► Nov 2013 reached out to SLNOI for partnership support and strategy

► Set out on a diagnostic process to establish “current state” of company = opportunities & challenges

Big Picture Process

Science and Research

Industry Experience

Partnership

Strategic Change

Commitment“Jill and her team helped us to

make quick decisions to get us

on the right path. Six months

later the results speak for

themselves."

-Richard Brewer, CEO

The Foundation: Academic Theory

Systems Theory Organizations are like living organisms,

made up of sub-systems. Organizational success relies on

interdependence. Research dictates that employees are

arguably the most vital subsystem in any organization.

Contingency theory (an integral part of systems theory)

The ideal structure and form of any “system” depends on the DYNAMICS of its internal subsystems.

Organization structure (Org Charts) can have far-reaching effects on the company’s far-reaching relationships with their employees.

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014

Get right to the Punch Line…

< 9 Mos.

Industry Average NOI

NOI Per Employee

51% Increase

Turnover in the first 90 Days

34%

13%

$194K Savings (Quarterly)

Worker’s Comp Costs

1.23

.84

Mod Rate

We See It Differently…

NOI and Occupancy are OUTCOMES of the organizational system.

What Do We Sell?

Rethink the Paradigm

People

Process

Biggest Expense

Product Building & Food

Department Silos

FROM

Ecosystem

TO

People

# 1 Asset

Repeat After Me……..

The Person Closest to the People, Product, or Process is in the BEST Position to Affect Change.

“Flip The Org. Chart”TM

Residents, Family Members, Prospects

C-Suite

Home Office

Regional Teams

Executive Directors/ Dept. Heads

Front Line Associates

Our People ARE Our ProductTM

It starts at the top. Bottom.

Residents, Family Members, Prospects

C-Suite

Home Office

Regional Teams

Executive Directors/ Dept. Heads

Front Line Associates

Organizations Behave Like Their LeadersTM

10 Years Ago

… IF AUTHENTIC.ALL Actions Flow Through Them.

“Culture is what people do when

nobody is looking.”

The Commonwealth Story

… a partnership of success

Before this happened…

“ When We Were Small, People Knew We Cared” Richard Brewer, CEO

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014

SLNOI Diagnostic

Quantitative Methodology

• Financials1

• Sales Intel2

• Process & Policy3

• Norms (inherent standards)4

SLNOI Diagnostic

Qualitative Methodology

7 Days

30 Home Office

27 ED’s & AIT’s

108 Dept

Heads

180

Staff

345People

Were

Heard

What Our People Wanted Us To Know

Culture35%

HR26%

Res Care and Risk18%

Facility Utilization7%

Sales7%

Dining4%

I.T. Systems and Service3%

Weighted Impact Analysis

Culture

HR

Res Care and Risk

Facility Utilization

Sales

Dining

I.T. Systems and Service

It All Starts With Core Values

It’s all about the people

► Took a good hard look at the quality of our people.

► Turnover can be a good thing (initially)

► Evaluated where we were with human capital– Gaps

– Bench Strength

– Those who aligned with our values (and those who didn’t)

► Made a critical decision to hire for fit w/science

► Redesigned the way we developed people. Learning. Not “Training”.

► Commitment to accountability

“If you’re not using this tool, you must not want to work here”.

Organizational Effectiveness

TM

A proprietary process for superior operating processes and results.

Translate Individual Insights into a Mosaic of Analysis and Execution

Step #1

Reality

Check

“The biggest employer in town closed”

“We don’t pay enough!!”

Step #2

Step #3

Step #4

Jill and her team “Taught us to fish”….

“Flip The Org. Chart”TM

Residents, Family Members, Prospects

C-Suite

Home Office

Regional Teams

Executive Directors/ Dept. Heads

Front Line Associates

Our People ARE Our ProductTM

Occupancy Correlation

Thank You!