© 2023 MJH Life Sciences™ and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.
Governance writing the rules of the road (Proceedings)
Core characteristics of good governance: participation, rule of law, transparency, responsiveness, consensus orientation, equity, effectiveness and efficiency, accountability, and strategic vision.
Always Obey the Traffic Laws
• Governance: What, Why and When
• The Key to A Strong Beginning
• Models of Governance
• Professional Management
• Examination, Diagnosis and Compliance: Strategic Management
• "NEW RULES of the Road"
• "Start to Stop Today"
Governance and the Rules of the Road
• Smooth Ride With No Bad Traffic?
• Constant and Consistent Traffic Jams?
Slow Down! Reduce Speed
• Governance: What?
Core characteristics of good governance
All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively
2) Rule of law
Legal frameworks should be fair and enforced impartially, particularly the laws on human rights
Transparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them
Institutions and processes try to serve all stakeholders
5) Consensus orientation
Good governance mediates differing interests to reach a broad consensus on what is in the best interest of the group and, where possible, on policies and procedures
All men and women have opportunities to improve or maintain their well-being
7) Effectiveness and efficiency
Processes and institutions produce results that meet needs while making the best use of resources
Decision- makers in government, the private sector and civil society organizations are accountable to the public, as well as to institutional stakeholders. This accountability differs depending on the organization and whether the decision is internal or external to an organization
9) Strategic vision
Leaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development.
There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded
Slow Down! Reduce Speed!
• True Value of the Business
• It is a Major Responsibility
• Cycle of Communication
• Civil Order
• Safety Net
• Key Operating Metrics
o Date of Initial Practice Idea
o Financial Benchmark
o Growth of Employees and Hours of the Day
o Time Value of Money
o Multiple Locations
o Competition or Confusion
• Starting On the Right Road
o Core Values
o Practice Purpose
o Practice Vision
o Practice Mission
o BHAG and "Filling the Circles"
• CORE VALUES are like rules of the road for how shareholder and employees will communicate and cohabitate. They are the foundation of your promise to the public.
• What are Core Values?
• They are fundamental ethical, moral and professional business beliefs. These beliefs and principles serve to:
o Form the basis for desired personal conduct and interpersonal relationships.
o Govern, provide direction in making strategic operational decisions.
o Represent the culture, management style, define how things get done.
o Unify the organization in pursuit of it's purpose.
• The PRACTICE PURPOSE is analogous to the North Star as it should serve as a reminder of why you do what you do and as a source of inspiration for all team members when the business, employees or the "bad day" are clouding our view.
• What Is Purpose? What Does it Clarify?
• How does the practice impact the community it serves?
• How does the practice fill a basic human needs and serve society?
• It is never fulfilled but always worked towards.
• Can be expressed in three sentences or less.
• Of long duration-100 years.
• What do we do? What do we provide? Why is it important?
• The PRACTIVE VISION is the single most important contribution of the owners.
o Only the owners can produce a vision.
o It is word picture that is a constant reminder of what the practice was to be.
o It is the inspiration of the practice "brand identity" and the most important marketing piece the hospital will ever create.
• A vision is a mental image, a vivid description of what the organization will look like when the mission is achieved.
o Should present an expanded, enriched, colorful version of the mission.
o It is a word picture of how you want your values lived. What does it look feel and taste like?
o Imaginative, challenging bold and lofty.
o Defines the way you would like your organizational world to be if there were no challenges or hindrances.
o Not based on current day reality.
o Sometimes written in the present tense as though it had been achieved.
• The PRACTICE MISSION is the guide for current operational decisions (1-5 years). It should serve as the road map for operational objectives and the practices goals and objectives and when utilized as a tool it can shape the practice culture.
• The Practice Mission is a clear and compelling major accomplishment that serves as the focal point of effort based on the organization's purpose.
• Addresses the single most important achievement to realizing the organization's purpose while living within it's core values.
• It is achievable.
• Big, demanding, bold and audacious.
• Can be quantified, measured.
• Time frame specific-usually three to five years.
• Represents an accomplishment that may not be realized-you can fail!
• Business Models
o Single Owner, One Business (May have one or many disciplines). Areas of Impact might be; practice culture, succession planning
o One Business, Multiple Partners (General Practice, Specialty and Emergency Centers). Areas of Impact might be; Partners in Profit, Non voting owners, exit strategy, CULTURE and COMMUNICATION.
o Multiple Businesses, Separate Owners (Specialty and Emergency Centers, General Practice and Grooming/Boarding and ancillary or "other providers".) Areas of Impact might be; CULTURE and COMMUNICATION, Finance, Marketing and Community Relations, exit strategy.
• Agreement = Contract
• Contract: A contract is a set of bargained for promises between two or more people, where one party promises to do X in exchange for another party's promise to do Y. Courts require that an enforceable promise meet certain conditions. For example, the parties must be of age (no minors), of sound mind, and not under duress; there must be no fraud or mutual mistake over an important aspect of the transaction, and the deal must not be so one-sided as to be "unconscionable."
• Contracts and Agreements
o Operating Agreement
• Governance Process
• Cycle of communication
• Budget and expense allocation
• Growth and Quality Management
• Non Competes and Discipline Boundaries
• Shared employees and/or services
o Building Real Estate or Lease/Tenant Improvements
• Separate company?
• Practice Image and clear definition of owners responsibilities and lessee's responsibilities
• Property Management
• Navigate the potholes and bumps in the road.
o IF IT IS NOT WRITTEN IT DOES NOT EXIST
o What you can measure you can manage:
• Exclusive, shared, common
• Length of Terms
• Shared employee work agreements
• Use experts in each area: "An ounce of prevention...."
• Practice Management: One size does not fit all!
• The Nature of Management Development
o Process of building the current and potential performance capabilities of an organization's managers
o Focus is skill development
o UNDERSTANDING how to think and behave as managers
• Functions of Management Development
o Enhance management skills
o Shape the corporate culture
o Promote Leadership Style
o Reward and Recognize managers
• Critical Dimensions
o The person's concept of their role
o The skills demanded by the role
o Attitudes and Psychological factors
• The fundamental dimension of successful transition involves changing the concept of one's organizational role from a performing doer to a managerial role of supervising the work of others.
• Management Development Transitions
o Organizational Hierarchy
o Role Concept
o Skills required
o Psychological Strengths Preferred
• Organizational Hierarchy
o Technician: 100% of employees time is spent "doing." No employee supervision.
o 1st Level Supervisor: Assistant Coach or player coach. Transitioning from "doer" to planning and organizing and training.
o Middle Management: Manager of the other managers. Understands that they must work through others to achieve objectives.
o Senior Manager: Manager of a major functional area or division.
o CEO/COO: Head Coach. Focus is on managing the organization as a whole, being an ambassador to the public and senior manager development.
• First Level Supervisor
• Middle Manager
• Senior Manager
• Management Systems at Critical Stages of the business.
o Stage 1: Strategic Plan is in owner's head, perfunctional organizational structure, OJT for managers and control is observation driven.
o Stage 2: Strategic plan starts to formalize and there is functional structure. Management training is focused on the basics and front line coaching and control systems are created.
• HR/Personnel Management
• Accounting and Budgeting
• Basic Reporting and Meeting System
o Stage 3: Formal Strategic Planning, functional structure, multi-level management training is optimal and control is achieved through systems and data that are subjective.
o Stage 4: Strategic Planning is a way of life, COMPLEX org structure, leadership development and controls for decentralized management
• Examination, Diagnosis and Compliance: Strategic Planning
o SWOPT and Formal Goals connected to mission and vision.
• Goals, Objectives, Strategies and Action Plans that allow for predictable implementation.
• Use of committee's/task force to drive initiatives.
• Rear View Mirror and Windshield Meetings
• Follow the Plan
o Broad range goals ( 2-5 major accomplishments a year) that move the practice toward achieving the mission.
o Objectives are specific and measurable time bound results that lead to the accomplishment of the mission.
o Strategies are a broad based statement of how the practice will deploy resources that allow for accomplishment of objectives.
o Action Plans are "the process." Who will do what and when will it be done and how will we measure it?
o Resulting in predictable implementation.
Detour! NEW RULES of the Road
• Everything takes twice as long to accomplish and exponentially gets more difficult to execute.
• Increase in net wealth is akin to "futures stock."
• Lower margins and larger overhead the bigger you get.
• Psychological change must take place in entrepreneur.
• Complex operating systems are a must.
• Budget or BUST!!!
• You can't know everything-hire specialists.
Road Closed! Stop Doing.....
• Stop Micro Managing
o Is everyone contributing at their highest level?
• Stop canceling administrative and staff meetings.
• Stop minimizing the impact of the "do as I say, not as I do culture."
• Stop Being Toxic
o Monitor burn out
o 360 degree peer reviews
o Walk the Talk
• Stop penalizing your great employees by burdening them with Peter Principled mediocre employees.
• Stop playing favorites.
• Stop Give Aways
• Stop blurring the line between owner/personal and business budget
• Stop neglecting your marriage
• Stop abandoning the children
• Stop ignoring reality
o Ignorance about business is a choice
o Communicating or not communicating is a choice
o Avoiding conflict is a choice
• Stop Reinventing the Wheel
o There are resources out there....
You Have Arrived at Your Destination