Five Strategies to Thrive in Difficult Times

Healthcare leaders have long felt that they are on the front lines: Fighting disease, budget cuts, insurance, and reimbursement procedures. Now these organizations are feeling the added pain of a global economic meltdown that is threatening their very existence. Generally required to keep more cash on hand than other businesses, healthcare organizations are suffering from an inability to access capital and remain solvent. The economic downturn has forced hospitals and health system executives to make difficult decisions in recent months.

In order for healthcare organizations to emerge with their reputations and operations intact, they will need to be inspired in the way they lead their organizations now, and in the months ahead.

Last fall, Warren Buffett said the nation had been hit by an "economic Pearl Harbor." In these circumstances, employees and colleagues are looking for genuine leadership; leaders that can reach beyond the routine of managing, and focus on the morale, productivity, loyalty, and survival of their organizations. The military has lived with these responsibilities for a long time. In the army, there are key leadership rules in a battle, and they are relevant for directors wondering how to lead their shell-shocked and cynical troops.

The healthcare leaders that are successfully battling through the downturn—and surviving—are those using the same principles that have been tried and tested during times of both war and peace.

Everyone is afraid in a battle, the leader included. It is natural to feel this way in a high-pressure environment, but the leader must not reveal his or her fear to their teams. They must conceal their fears to avoid amplifying hysteria. Forget all the talk about showing your weaknesses and vulnerability. No matter how bad you feel, don't show it!

Do not let your troops lie down in a firefight or they may not be able to get up.  Instead, you need to maintain momentum and purpose by forging ahead rather than risking inertia through a "wait and see" attitude. Keep their energy and enthusiasm focused on the future and preparing for better times. Unfortunately, it appears that too many organizations have already allowed paralysis to happen. We see paralysis in leaders in every industry and healthcare is no exception. If we are to come out of this war, we will need innovation, ideas and direction

Forget all this talk of "human capital." If you treat your people as dispensable units, then they will behave like them—costing you more and achieving less in the process. It is a military leader's responsibility to bring his troops back alive. Similarly, healthcare leaders have an obligation to their teams to help prepare and protect them. In turn that leader will inspire confidence, loyalty, and hard work.

Here are five strategies you would do well to implement in tough times.

Empower ALL of your people to deliver results
Surprisingly, healthcare organizations can be more authoritarian than the military, with leaders refusing to loosen their grip on others' roles. Empowering your team to adopt a can-do spirit will give you a great advantage over whatever battle you might be fighting. By doing so, you foster an environment of agility and dynamism that can lead to passion, innovation, and wellness.

Strategize, revise, repeat
In the army, they say that no plan survives its first encounter with the enemy, and that's true for healthcare as well. The plan might look fantastic while it's being developed at an off-site retreat, but the reality of putting it into practice at the front line is often quite different. So, revisions and further communications become increasingly important in times of crisis.

Identify the enemy
Knowing the business of healthcare and understanding how to improve healthcare in the current environment are two different things. It would be foolish to go into battle without enemy intelligence. Yet many health leaders ignore market influencers and research. By role-playing possible scenarios that may affect your organization's plan, you can stress test initiatives and anticipate outcomes before problems arise. Can a plan withstand attacks, such as increased regulation, reduced reimbursements, increased healthcare demands, an aging population, and even legal actions? How? Thinking about possible scenarios before they happen is pivotal to retaliating with a quick effective counteraction.

Measure success, not targets
If a soldier adhered to a target of "taking the base camp" after it was deserted, they would miss the point that the enemy has already gone elsewhere. Targets exist to give black-and-white answers to whether an organization is doing well. In the current climate, it is particularly important to review your targets and confirm that they accurately reflect your goals.

Keep your eyes on the horizon
These recommendations are not alien to leaders. But at such precarious times as these, correctly applying the techniques can be the difference between success and failure. In battle, the fast beat the slow, and the organized will always defeat the unprepared. Healthcare leaders today who realize the importance of setting aside time to address the issues above will find themselves well prepared to fight larger issues, and will emerge from the downturn well-positioned for a healthy recovery.