Creating a compelling vision is a critical step in driving organizational transformation. Premier, a leading healthcare alliance in the United States, faced the challenge of merging three organizations into a cohesive entity. The process of vision creation and the subsequent transformation at Premier highlight the importance of engaging employees and aligning organizational values.
Background and Strategic Objectives
Premier was formed in 1995 through the merger of Chicago-based Premier Health Alliance, San Diego-based American Healthcare Systems, and The SunHealth Alliance of Charlotte, North Carolina. The organization, collectively owned by more than 200 independent hospitals and healthcare systems, aimed to leverage its size to offer a comprehensive array of services including group purchasing, consulting, and technology management.
Two and a half years post-merger, a comprehensive organizational assessment revealed significant cultural fragmentation. Many employees operated in silos, adhering to the norms and practices of their legacy organizations. Premier's strategy and business model were poorly understood and inconsistently implemented, leading to a lack of trust and a sense of direction within the organization.
Challenges in Vision and Culture
The assessment pointed to a critical issue: the organization's vision, mission, and values, developed shortly after the merger, were not widely embraced by employees. Although these statements were clear and compelling, they were crafted by a small group of executives, resulting in limited ownership and commitment among the broader workforce. This disconnect was exacerbated by perceived inconsistencies between top management's behavior and the espoused values, further eroding trust.
Initiating Change
In response to these challenges, Premier hired Richard Norling as COO in 1997. Norling, previously a CEO at one of Premier's member health systems, had a track record of initiating successful OD efforts based on core organizational values. Recognizing the importance of employee involvement, Norling and Premier's executives decided to build on the existing values and mission statements by engaging a larger number of employees in the process.
The Values Conference
The first major step was a three-day values conference held in 1998, involving over 200 employees from various levels and functions within the organization. Designed by a team representing a cross-section of Premier and assisted by an OD practitioner, the conference aimed to:
Examine Premier's business model and organizational culture.
Develop and recommend a set of core organizational values.
Craft an envisioned future for Premier.
Identify strategies for employee involvement and organizational transformation.
The conference fostered rich discussions and generated actionable insights. Employees examined the current state of Premier and envisioned a future aligned with the organization's mission. They identified key values and behaviors that would support this vision and proposed methods for integrating these values into Premier's daily operations.
Sustaining Change
Following the conference, the team responsible for planning the event became a permanent committee. This committee refined and implemented the recommendations from the conference, ensuring continuous alignment with the newly defined values and vision. Key actions included:
Integrating values into Premier's performance management and appraisal systems.
Incorporating values into the recruitment and selection processes.
Instituting an annual meeting modeled after the 1998 values conference to discuss business strategy, culture, and values, ensuring that all employees had the opportunity to participate over a three to five-year cycle.
Outcome and Impact
The vision and values effort resulted in a set of foundation statements that guided Premier's transformation:
Core Values: Integrity, performance, innovation, and a focus on people.
Core Purpose: To improve the health of communities.
Envisioned Future: A commitment to reshaping healthcare by 2020, making Premier's owners the leading healthcare systems in their markets.
By 2020, Premier aimed to be recognized for innovative, cost-effective healthcare delivery, influencing national policy and promoting community health. The process of engaging employees in vision creation and embedding these values into organizational practices led to increased trust, a sense of direction, and alignment across the organization.
Conclusion
The case of Premier illustrates the power of vision creation in driving organizational transformation. Engaging employees in the process and ensuring that values and behaviors align with the envisioned future can lead to a cohesive, purpose-driven organization.
Organizational Development Services
At OrgEvo Consulting, we specialize in facilitating vision creation and organizational transformation. Our services include strategic planning, stakeholder engagement, and large-group interventions to drive meaningful change. Contact us to learn how we can support your organization in achieving its strategic goals.
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