HBR's 10 Must Reads on Leadership for Healthcare (with bonus article by Thomas H. Lee, MD, and Toby Cosgrove, MD)
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About this ebook
Go from being a good practitioner to being an extraordinary leader of healthcare professionals.
If you read nothing else on leadership, read these 10 articles. We’ve combed through hundreds of Harvard Business Review articles on leadership and selected the most important ones for healthcare leaders to help you and your team excel, maximize performance, and live into your mission.
Leading experts, such as Thomas H. Lee, Daniel Goleman, Peter F. Drucker, John P. Kotter, and Warren G. Bennis, provide the insights and advice you need to:
- Motivate others to excel
- Build your team's self-confidence
- Inspire positive change
- Have an impact not only on your organization but on the surrounding system
- Maintain your identity and values as a clinician as you move into an organizational leadership role
- Encourage smart risk taking
- Work in complex systems where authority is diffuse
- Manage with tough empathy
- Draw strength from adversity
HBR's 10 Must Reads paperback series is the definitive collection of books for new and experienced leaders alike. Leaders looking for the inspiration that big ideas provide, both to accelerate their own growth and that of their companies, should look no further.
HBR's 10 Must Reads series focuses on the core topics that every ambitious manager needs to know: leadership, strategy, change, managing people, and managing yourself. Harvard Business Review has sorted through hundreds of articles and selected only the most essential reading on each topic. Each title includes timeless advice that will be relevant regardless of an ever-changing business environment.
Classic ideas, enduring advice, the best thinkers: HBR's 10 Must Reads.
Harvard Business Review
Harvard Business Review es sin lugar a dudas la referencia más influyente en el sector editorial en temas de gestión y desarrollo de personas y de organizaciones. En sus publicaciones participan investigadores de reconocimiento y prestigio internacional, lo que hace que su catálogo incluya una gran cantidad de obras que se han convertido en best-sellers traducidos a múltiples idiomas.
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HBR's 10 Must Reads on Leadership for Healthcare (with bonus article by Thomas H. Lee, MD, and Toby Cosgrove, MD) - Harvard Business Review
Index
Introduction
by Thomas H. Lee
Over the last half century, for the CEOs and senior managers of health care organizations, the meaning of leadership has gone through two transformations. In the kinder, gentler past, financial pressures were mild, and quality was considered unmeasurable. In the absence of compelling metrics for output
or pressures to contain costs, business success depended on preserving relationships, brand building, and crisis management, and these were the skills prized in health care leaders.
The surge in medical progress that began in the 1960s, which resulted from increased investments in research in the years after World War II, drove the first transformation away from this status quo. Untreatable diseases became treatable, and some even became curable. For example, innovations like coronary artery bypass graft surgery, coronary angioplasty, thrombolysis, and statins for cholesterol reduction transformed cardiology from a passive to an active discipline. Almost every area of medicine had analogous advances.
Before these advances, medicine had been a field in which physicians made diagnoses, predicted prognoses, and relieved suffering. But now, health care providers could actually change the future, often for the better, and sometimes for the worse. There were many more medications and operations that might help patients live better and longer lives, but occasionally the wrong drug was given, and procedures went awry. As medicine became more active, the safety and quality of care began to attract more attention, and health care leaders have had to learn the skills needed to improve them within their organizations—like measuring data and organizing personnel to reliably perform at their best.
And it turns out that improving care is different work from keeping the peace. Leaders must be willing to enter into conflicts and manage them well. They must excel at negotiation. Simultaneously, they must have empathy for their patients, and, as in any business sector, they must deploy emotional intelligence to broker good relationships with their personnel. That work is especially complex with physicians and nurses, who are rightly proud of their professional standing and the quality of their work.
The second transformation in health care leadership has come in response to the other side of the equation from patient outcomes: costs. Health care spending rose about 2.5% per year faster than the growth of the rest of the economy after 1970, accounting for an increasing share of the U.S. economy. The federal government started to try to apply the brakes on spending with the Balanced Budget Act of 1997, which cut payments to doctors and hospitals. For a time, providers were able to get increases from commercial insurers that made up for the lower payment rates for Medicare and Medicaid payments, but those times have come to an end. Instead, leaders must learn to make the difficult strategic decisions—and to understand the efficiency of the operations behind them—in order to contain costs.
These two transformations mean that today’s health care CEOs and C-suite teams face pressures to improve quality and costs. These leaders must broker complex relationships while simultaneously driving improvement in performance. For health care leaders, these roles require a special mix of soft and hard skills. Health care executives need to lead change management in organizational cultures that have traditionally celebrated autonomy. They need to understand the difference between leadership and management, and bridge the gap between them—keeping an eye on the horizon as well as the dangers in the waters immediately before them. They need to build real teams that work together to improve quality and efficiency, without losing the intense individual motivations that draw people into health care.
The need for improvement in performance has also meant that senior executives in health care have to define their organization’s culture, orienting it around a clear purpose and shared values. The leaders themselves must walk the walk
of those values. And words and phrases that have been rhetorical flourishes—like improvement,
high reliability,
trust,
teamwork,
and resilience
—are now operational imperatives.
To help health care leaders improve performance, this volume of Must Read articles collects Harvard Business Review’s definitive articles on leadership in any sector, as well as some pieces chosen specifically for a health care readership.
The collection begins with four landmark Harvard Business Review articles on the nature of leadership and the makeup of leaders. Daniel Goleman defines the aspects of emotional intelligence that are core competencies for leaders, including empathy, which has moved from a nice to have
to a must have
for executives as well as clinicians in health care. Peter Drucker’s foundational thinking on the role of a leader shows how leadership and management practices exist on a spectrum; they are not separate types of work for separate people. John Kotter’s treatise on change management is a nice complement to this way of thinking in that it offers another perspective on the differences between leadership and management, even while providing a framework for how leaders can drive change in their organizations. Jim Collins’s article defining Level 5 Leadership
provides a description of what it means to put all these elements together in a package that enables a leader to take an organization through challenge and change.
The other articles we’ve included address some of the special challenges for leaders in health care in today’s era. Ronald Heifetz and Donald Laurie’s article on The Work of Leadership
describes how leadership in times of turmoil requires more than having a vision and aligning a workforce; they offer key principles for how leaders should create a context for change. Amy Edmondson’s article Teamwork on the Fly
acknowledges both the importance of teamwork and the reality that teams often have to be pulled together for special initiatives—like the care of a complex patient. That means that leaders need to develop the skills to inspire and enable this quick ability to form teams on the fly—what she calls teaming
—that can become a critical competitive differentiator for providers.
Paul Rogers and Marcia Blenko’s article Who Has the D?
touches a sensitive nerve in a lot of health care organizations, where it often seems that no one has clear decision-making rights and responsibilities. This article offers leaders a solid framework for determining and communicating which decisions get made by whom.
Deborah Ancona and her colleagues acknowledge that no one has all the skills to do everything expected from the leader of an organization with complex functions—like so many of those in the health care sector. Instead, they describe how leaders can build a distributed leadership
model that spreads key skills, tasks, and functions, and doesn’t unrealistically ask any one person to do everything.
Robert Kaplan and David Norton’s article on using the balanced scorecard is critical reading for leaders who understand that they must also manage.
And the last two articles, which more deliberately address the health care sector, describe some of the specifics of what elements of the organization a health care leader must manage and how they can involve clinicians in that work.
We have chosen these articles because, collectively, they help define the range of skills and perspectives that are essential for leading complex work through times of change, with increasing pressures from a marketplace that demands improvement in both quality and efficiency. We offer them with full awareness that health care is a special sector, with unusually high stakes for its personnel and its patient-customers. But there are nevertheless valuable lessons for health care leaders from the other business sectors, especially as health care grows more strategic, cost aware, and patient focused. The insights from this collection can enable health care leaders to better understand the skills they need for their most important work.
What Makes a Leader?
by Daniel Goleman
EVERY BUSINESSPERSON KNOWS a story about a highly intelligent, highly skilled executive who was promoted into a leadership position only to fail at the job. And they also know a story about someone with solid—but not extraordinary—intellectual abilities and technical skills who was promoted into a similar position and then soared.
Such anecdotes support the widespread belief that identifying individuals with the right stuff
to be leaders is more art than science. After all, the personal styles of superb leaders vary: Some leaders are subdued and analytical; others shout their manifestos from the mountaintops. And just as important, different situations call for different types of leadership. Most mergers need a sensitive negotiator at the helm, whereas many turnarounds require a more forceful authority.
I have found, however, that the most effective leaders are alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence. It’s not that IQ and technical skills are irrelevant. They do matter, but mainly as threshold capabilities
; that is, they are the entry-level requirements for executive positions. But my research, along with other recent studies, clearly shows that emotional intelligence is the sine qua non of leadership. Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won’t make a great leader.
A Bit of Context
Every important measure of performance—financial margin, throughput (for example, average length of a patient’s stay), safety, patient experience—has been shown to correlate with the pride that doctors, nurses, and other personnel feel in their organization, and the confidence that their organization is committed to core values like quality and safety. Shared values are particularly important during times of transition, like the overhaul that health care is experiencing. Organizations are merging, care is being redesigned, and payment models are being turned on their heads. As a result, health care leaders must not only clearly communicate shared organizational values, but also demonstrate that these values are fundamental for them personally.
Doing so takes emotional intelligence as psychologist Dan Goleman has defined it in this landmark article. Health care leaders need the self-awareness to understand how they are perceived and to make themselves visible—out on the floors of hospitals and clinics, for example. They need the discipline to be unwavering in their embrace of the core values of their profession and the empathy to understand the impact of change and pressure on their personnel. And they have to ask questions, listen, and tell stories that demonstrate that they really do embrace those values throughout their work. Leaders also need the social skills to get clinicians and others to build their own strong values and live into them reliably. Health care is a relationship-based business, and its leaders must have real relationships with their colleagues that inspire trust, respect, and cooperation.
The material in this article will be familiar to many readers, but its inclusion in this book is a reminder that everyone can get better at all five of Goleman’s elements of emotional intelligence: self-awareness, self-regulation, motivation, empathy, and social skill. In doing so, health care leaders will have a better chance at motivating their teams to take on challenging or new work.
—Thomas H. Lee
In the course of the past year, my colleagues and I have focused on how emotional intelligence operates at work. We have examined the relationship between emotional intelligence and effective performance, especially in leaders. And we have observed how emotional intelligence shows itself on the job. How can you tell if someone has high emotional intelligence, for example, and how can you recognize it in yourself? In the following pages, we’ll explore these questions, taking each of the components of emotional intelligence—self-awareness, self-regulation, motivation, empathy, and social skill—in turn.
Idea in Brief
What distinguishes great leaders from merely good ones? It isn’t IQ or technical skills, says Daniel Goleman. It’s emotional intelligence: a group of five skills that enable the best leaders to maximize their own and their followers’ performance. When senior managers at one company had a critical mass of EI capabilities, their divisions outperformed yearly earnings goals by 20%.
The EI skills are:
Self-awareness—knowing one’s strengths, weaknesses, drives, values, and impact on others
Self-regulation—controlling or redirecting disruptive impulses and moods
Motivation—relishing achievement for its own sake
Empathy—understanding other people’s emotional makeup
Social skill—building rapport with others to move them in desired directions
We’re each born with certain levels of EI skills. But we can strengthen these abilities through persistence, practice, and feedback from colleagues or coaches.
Evaluating Emotional Intelligence
Most large companies today have employed trained psychologists to develop what are known as competency models
to aid them in identifying, training, and promoting likely stars in the leadership firmament. The psychologists have also developed such models for lower-level positions. And in recent years, I have analyzed competency models from 188 companies, most of which were large and global and included the likes of Lucent Technologies, British Airways, and Credit Suisse.
Idea in Practice
Understanding EI’s Components
Strengthening Your EI
Use practice and feedback from others to strengthen specific EI skills.
Example: An executive learned from others that she lacked empathy, especially the ability to listen. She wanted to fix the problem, so she asked a coach to tell her when she exhibited poor listening skills. She then role-played incidents to practice giving better responses; for example, not interrupting. She also began observing executives skilled at listening—and imitated their behavior.
In carrying out this work, my objective was to determine which personal capabilities drove outstanding performance within these organizations, and to what degree they did so. I grouped capabilities into three categories: purely technical skills like accounting and business planning; cognitive abilities like analytical reasoning; and competencies demonstrating emotional intelligence, such as the ability to work with others and effectiveness in leading change.
The five components of emotional intelligence at work
To create some of the competency models, psychologists asked senior managers at the companies to identify the capabilities that typified the organization’s most outstanding leaders. To create other models, the psychologists used objective criteria, such as a division’s profitability, to differentiate the star performers at senior levels within their organizations from the average ones. Those individuals were then extensively interviewed and tested, and their capabilities were compared. This process resulted in the creation of lists of ingredients for highly effective leaders. The lists ranged in length from seven to 15 items and included such ingredients as initiative and strategic vision.
When I analyzed all this data, I found dramatic results. To be sure, intellect was a driver of outstanding performance. Cognitive skills such as big-picture thinking and long-term vision were particularly important. But when I calculated the ratio of technical skills, IQ, and emotional intelligence as ingredients of excellent performance, emotional intelligence proved to be twice as important as the others for jobs at all levels.
Moreover, my analysis showed that emotional intelligence played an increasingly important role at the highest levels of the company, where differences in technical skills are of negligible importance. In other words, the higher the rank of a person considered to be a star performer, the more emotional intelligence capabilities showed up as the reason for his or her effectiveness. When I compared star performers with average ones in senior leadership positions, nearly 90% of the difference in their profiles was attributable to emotional intelligence factors rather than cognitive abilities.
Other researchers have confirmed that emotional intelligence not only distinguishes outstanding leaders but can also be linked to strong performance. The findings of the late David McClelland, the renowned researcher in human and organizational behavior, are a good example. In a 1996 study of a global food and beverage company, McClelland found that when senior managers had a critical mass of emotional intelligence capabilities, their divisions outperformed yearly earnings goals by 20%. Meanwhile, division leaders without that critical mass underperformed by almost the same amount. McClelland’s findings, interestingly, held as true in the company’s U.S. divisions as in its divisions in Asia and