MHA FPX 5040 Assessment 3 Case Study Analysis – Part 2 MHA-FPX 5040 Health Administration Change Leadership

Introduction

Tufts-NEMC faced a crisis. The organization was unsure how to meet its financial obligations, such as payroll. Insurance contracts were below the required reimbursement rates, turnover was high, and there was a lack of key leadership. They needed someone to guide them out of this crisis. Ellen Zane was hired to steer the organization out of its difficulties and realign its overall strategy.

Tufts-NEMC was experiencing a period of transition, bringing many uncertainties. The previous five years involved a merger and separation that led to multiple financial losses for the organization. These complexities required Ellen’s attention. Financial losses were ongoing, with a 24% reduction in facility discharges and average length of stay between 1991-1996 (Ingols & Brem, 2016). The organization also struggled to recruit clinical staff, unable to compete with larger local competitors. These challenges were exacerbated by the absence of a strong leadership team to address these issues. As healthcare organizations strive to improve their performance and quality outcomes, they often encounter barriers that can impair progress or derail efforts altogether. Healthcare leaders must identify and remove these barriers to drive performance improvement (Rubino, 2020).

Structures and Systems

Ellen had a challenging task: to rebuild the organization’s financial standing and overall structure. Organizational structure aligns and relates parts of an organization to achieve maximum performance. The chosen structure affects an organization’s success in carrying out its strategy and objectives. Organizational structure is the method by which work flows through an organization, allowing groups to work together within their individual functions to manage tasks (Society for Human Resource Management, n.d.).

Initially, Ellen operated under a hierarchical organizational structure, possibly due to the urgency of making decisions to move the organization out of crisis. She needed to rebuild key functional departments and quickly assemble a team to meet these goals. A functional organizational structure is a traditional hierarchy that many companies, especially larger corporations, follow. This system features specialized divisions such as marketing, finance, sales, human resources, and operations (Levinson, 2018). Ellen quickly terminated seven senior managers, even against the wishes of board members.

Ellen prided herself on hiring the right people for the job. She knew she needed a strong team and developed a strategy to recruit top talent. Strategic thinking begins as an individual intellectual process, facilitated by experience, perspective, and skills, and uses methods of intellectual analysis to provide a pathway for the organization’s future success (Rubino, 2020). Ellen managed up, meaning she did not take credit for changes or positive outcomes but empowered her teams and gave them credit for accomplishments. She functioned as a transformational leader, holding town hall meetings to share her vision and build trust. She was transparent about the organization’s state and created synergy with the facility.

Powers at Play

Power naturally occurs in every organization. The saying “with great power comes great responsibility” holds true, especially in organizations. Responsibility increases with higher positions. Recognizing the influence of power on decision-making and responses to those decisions is crucial. Career development, particularly at high managerial and professional levels, depends on accumulating power to transform individual interests into activities that influence others (Zaleznik, n.d.).

Ellen had to use various forms of power during her time at Tufts-NEMC. She began with legitimate power, which comes from holding a position of authority in an organization, such as being a boss or key member of a leadership team. This power is recognized by employees in the organization (Abudi, 2020). Ellen had this level of power due to her position within the organization, enabling her to make decisions that impact change. However, other forms of power would reflect her ability to communicate a vision and influence others.