ENTERPRISE ORGANIZATION DESIGN:
Description
This is one of the largest healthcare providers in the US with total operating revenues over $10 billion, 25 hospitals, and nearly 50,000 employees. The design intent was to move the company from a holding to an operating company, and build a sustainable model capable of adapting to market diversification, new business development, and potential large-scale affiliation. Our goal was to create a truly innovative, best-in-class organizational structure and to ensure its ability to empower the next generation of enterprise leadership. Last, to be successful, the organizational design needed to support the company’s current priorities and culture, while enabling emergent strategies in response to changing business needs.
Methodology
The CEO and COO led the redesign. The top 15 high potential executive leaders were identified as design team members. The design process followed SPRING’s design approach: Assessment – External Benchmarking – Design – Impact Analysis – and Implementation. Initial focus was on the design of the first three layers and then a company-wide operations design. The design team utilized SPRING’s high engagement, rapid design process, requiring a total of eight sessions, overlapping with another ten subject matter expert design sessions.
Results
This project resulted in a total redesign of the top strategic structures, processes, and roles & responsibilities. It also engendered the creation of new organizational capabilities needed for future growth and effectiveness. Some of the changes realized:
- A shift from 5 regional P&Ls to 2 regions
- Redesign of the executive team structure
- Shift to more centralized strategic decisions
- Move to a dyad leadership arrangement – SVP Physician-Patient Experience and Chief Operations Officer – (new horizontal capability)
- New Chief Innovation Officer and function
- New Chief Marketing Officer and function
- New Chief Transformation Officer and function
- New integrated IT and Analytics function
- Two new divisions reflecting natural service areas
- A new function - Medical & Market Networks - as an integrated market-facing entity.
