PCB007 Magazine

PCB-Mar2016

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22 The PCB Magazine • March 2016 Brian was not only a great student, but he also became a recognized leader at GRMC. As I was preparing to leave my assignment, Brian asked me what he should do going forward. I replied he should help out his fellow directors with their systems optimization, because we learn the most when we teach others. Good News for the Hospital: 62% Increase in Profitability On sales of approximately $30 million, through the systems optimization work we did over 14 months at GRMC, the hospital was able to add in excess of $1.1 million to its bottom line, an increase of over 62%. Mission accom- plished. The Gila Regional Story, Part 2 Brian continued his good work and began moving up in the organization. He became a vice president and was John Rossfeld's right- hand man. However, all the good times were about to change. John Rossfeld left GRMC and was replaced by a new CEO, who had his own ideas about how to operate a hospital. The new ways did not include a systems-based approach. Instead, the new CEO hired five new vice presidents, who followed him around and began undoing much of the systems work we had put in place. He seemed especially intent on gaining back control of systems optimization from the front- line care providers. When care providers brought potential so- lutions to problems to management, they were outright dismissed. Often, although several years after I left, my name would be brought up by care providers as a way to explain what they had been taught about systems optimi- zation and problem solving. The CEO would have none of it. It became such an issue that my name was banned from use at the hospital. It's true. With unconscious leadership, no good deed goes unpunished. In fiscal 2013, GRMC lost $9 million on sales of approximately $30 million. The GRMC board of directors panicked (as they should) and fired the CEO and the VPs he had hired. The only executive left was Brian and he was made the interim CEO while a search was conducted for a permanent CEO. Brian did the only thing he knew to do: reinstitute all of the systems which had been torn apart by the old regime. Where there were voids in management, Brian simply found people in the departments that had been trained in systems optimization and turned them loose with the new tools we had devel- oped for systems optimization. the four new agreements to explode profitability Figure 3: net income increase of $1.1 million in 14 months (+ 62%).

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