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2008 presentation that discusses the challenges associated with successfully recruiting and retaining the right CEO candidate. See more at: http://www.integratedhealthcarestrategies.com/knowledgecenter.aspx.
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www.IHStrategies.com
WSHA Governance Web Cast SeriesCEO Selection: Getting it Right
Exclusive to Healthcare. Dedicated to People. SM
Presented by:Jane Groves, Executive Vice President and Practice Leader
Roger Samuel, Vice PresidentMSA Executive Search
September 18, 2008 | 12:00 – 1:00 p.m.
Web login: www.presentpluspro.com/wsha21; password ‘wsha’Audio login: 1-888-373-5705; ID code 190240#
(For audio assistance at show time, call 1-866-427-5234)
Presenters
Roger SamuelVice President
Jane GrovesExecutive Vice President
and Practice Leader
Why we’re here with you today . . .
75% of Washington hospitals have experienced CEO turnover in the past three years
The average tenure of a U.S. healthcare CEO is 5.4 years, with a median tenure of 3.7 years
40% of new CEOs terminate within 18 months
An average of four senior executives will follow the exiting CEO in the first year
The Role of the Board:To hire and evaluate the CEO
“Hiring a CEO is a two-way process. The Search Committee chooses a candidate, but the prospective CEO assesses whether the organization represents a good career move and a place where he or she can be successful.”
Barry BaderBoard Consultant
The Role of the Search Committee:
To act as a proxy of the full Board in the hiring and selection process, ideally resulting in a unanimous vote of support.
Search Committee Makeup:
3 - 5 Board members at-large
2 - 3 members of the Medical Staff
Ideal Size: 5 – 8 members
Other Issues to Consider:
Should the Committee include influential community members not on your Board?
Should Nursing be represented on the Committee?
Should your Board Chair lead the Search Committee?
Your Search Committee has been formed . . .
NOW WHAT?
Search Firm, or On Your Own?
Managing the Process
Objectivity
“Do not try as a Board to take on the job of recruiting. The reason not to do it is because you don’t know HOW to do it.”
Frank TaylorMedical Center Board Trustee
“The search firm is going to help you with a decision that is probably the most important decision you (the Board) will ever make.”
Michael DoodyWitt/Kieffer
Managing the Process –What to Consider
A realistic timeline
Communications and expectations
Maintaining confidentiality
The media
Goals
Reducing the margin of error
Matching your organization’s needs, values, and culture, and the candidates’ experience, skills, personal attributes, and values
Learn as much as you can about
– the expectations, challenges, and opportunities the new CEO will be facing. Objectively evaluate your organization from the viewpoint of prospective candidates
– your potential candidates
How?
“The work the trustees do before they interview their first candidate could determine whether that candidate is a good fit for the hospital – and whether the hospital will be able to convince the candidate to come aboard.”
Martha HauserWitt/Kiefer
The CEO Profile is the Cornerstone of the Search Process . . .
“A pitfall is when you start moving toward trying to identify a candidate before doing the really hard work of saying what the needs are.”
Jane GrovesExecutive Vice President
MSA Executive Search
Competitive landscapeWhy is the position open?The financial health of the institutionIssues and culture of the Medical StaffThe strength of the Senior TeamTechnology and other capital needsChallenges to providing quality patient carePatient, physician, and employee satisfaction scoresand trendsStrategic and capital plans
The CEO Profile
Goals of the Search Process
The personality, personal values, leadership attributes, and skill set to succeed in your organization.
The desire to move oneself, spouse, and family to your community and join your organization.
To identify and screen candidates who possess:
Dissecting the Resume . . .
The importance of length-of-stay and departures in the candidate screening process
Look for results and accomplishments relevant to the needs of your organization – not just responsibilities
Use your Strategic Plan as a guide
Professional References: determining the reputation and track record of your candidates from a 360-degree perspective
Verification of education, employment history, credit, and criminal records
Use of a leadership assessment tool
Completing a Comprehensive Candidate Profile
The Internal Candidate
Create an even playing field
Evaluate and present through a new lens
Ensure a positive experience
Prepare for retention or transition
You have your slate . . .
NOW WHAT?
Interviewing
Both an objective -- and a subjective --evaluation process of top candidates
– An opportunity to RECRUIT !
Easy and convenient access to your community and your institutionOne location, if possibleBuild in time for breaksCoordinate questionsSpecial needs?Hospital/campus tourGroup interviews
Keys to On-Site Candidate Interviewing
Round One:– Keep it Simple. The goal is to narrow the field from 4 – 6
candidates to the final 2.– Meet with the Search Committee as a whole– Allow each candidate to make a short presentation to
the Committee– Coordinate a private meeting or meal with the Board and/or
Search Committee Chair– Limit to one day
Recommend a Two-Round Interview Process
Round Two – Key Interviews Include:– Key members of the Medical Staff – Board Committee Chairs (for informational purposes)
Other Events:– Community tour (candidate and spouse)– Realtor or community guide?– Board social event (candidate and spouse)
Recommend a Two-Round Interview Process (continued)
Other Resources to Access
Interview question guides (behavioral, etc.)High Impact Interview Questions
- Victoria Hoevemeyer
96 Great Interview Questions to Ask BeforeYou Hire
- Paul Falcone
Candidate evaluation tools
“At the end of the interviews, you have a culmination of knowledge –not just what’s set out in front of you, but behaviors you’ve observed over the course of four or five hours of individual and group time with each candidate.”
Larry TylerTyler and Company
Making the Final Decision . . .
Access and assess all the information gathered thus far in the process
THEN . . .
Trust Your Instincts
Benefits– Clearly signals to the Medical Staff and community that your new
CEO has the strong support of the Board. Can be a major draw in recruiting a superior CEO.
Considerations– Contract duration– CEO’s duties and responsibilities– Compensation and benefits, including incentive opportunities– Termination and severance provisions
The CEO Contract
Timing and coordination with a resignation
Who needs to know first
Who needs to know in person
Informing the unsuccessful candidates
Considerations in Making the Announcement
Courtship to Marriage ... Now What?
Consider morphing the Search Committee into a CEO transition team to plan:
Introducing key leaders and members of the medical staff
Assimilating your new CEO and family to the community
“It accelerates the process of assimilating a new executive into the organization. You manage it rather than leaving the executive towalk blindly and alone into new situations.”
Jane GrovesExecutive Vice President
MSA Executive Search
Key Resources
Your Physician Recruiter
Human Resources/Organizational Development
A Recent Executive Hire
The Board Chair will be accessible and clear with expectations and feedback.Have a plan in place for leadership continuity at the Board level. Will the current Board Chair be in place for at least another year, and is a successor in line?Understand and practice a clear delineation in responsibilities – between governance and management – between the Board and the CEO. The Board runs your hospital, but good Boards delegate the vast majority of that responsibility to the CEO.
How Your Board Can Best Support Your New CEO:
Be engaged and prepared to invest time in Board education and strategic planning – and committed to consistent self-evaluation and improvement.
Be prepared to address any Board dysfunctions and disruptive members appropriately, and in a timely manner
Be tolerant of, and prepared for, some turmoil and unexpected staff turnover – and a few missteps along the way.
How Your Board Can Best Support Your New CEO (continued)
The Main Reasons CEOs Stay
0% 10% 20% 30% 40% 50% 60% 70%
Compensation
Satisfied
Loyalty/Commitmentto Organization
Relationships
Community Ties 64%
64%
44%
28%
8%
Source: HR Pulse Magazine, Fall 2008
Thank You For Your Participation!
We Look Forward to Your Feedback.
Jane GrovesExecutive Vice President – Practice LeaderMSA Executive [email protected]
Roger SamuelVice PresidentMSA Executive [email protected]
