Patient satisfaction (Press-Ganey) Service People Quality Growth Financial Physician satisfaction (PRC Survey) Employee satisfaction (Sperduto Survey) Employee retention (turnover rate) Pressure ulcer incidence Surgical site infection index ER LOS for admitted patients Return to ER Medication report rate Falls Readmits Restraint usage Specimen occurrences Employee recruitment (vacancy rate) Patient volumes Market share Measures identified with a pillar are tied to performanc e evaluations and compensation for all staff. Consumer preference Operating margin Compensation ratio Days cash on hand Debt service coverage Exhibit 3.10. Dashboard of Indicators Note: Possible scores: At or better than target; Near or trending to ward target; Far from target; and Under development. cart_14399_ch03.qxd 10/19/04 12:00 PM Page 73 57.5 89 87.9 88.1 89.7 89.7 88.6 89 89.9 90.7 88.6 89.5 Patient Satisfaction Quarterly Percentile Ranking (Press Ganey avg of Inpatient, ER, SDS, Testing/T herapy) Start of New Press-Ganey Survey 60 0 Jan–Mar 02 Apr–June 02 Jul–Sep 02 60 31.9 57.5 61.5 10 20 30 40 50 60 70 70 80 81 85 92 93 95 87 89 86 94 90 100 Percentile Score Mean Score Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 84 86 88 90 92 94 96 98 100 89 87.9 88.1 89.5 89.7 89.7 87.5 88.6 89 89.9 90.7 88.6 89.5 Se p FY02 Oct FY02 Nov FY02 Sep FY03 Aug FY03 Jul FY03 Jun FY03 May FY03 Apr FY03 Mar FY03 Fe b FY03 Jan FY03 Dec FY02 31.9 31.9 Physician Satisfaction — PRC Survey Rating of "DCH as a Place to Practice Medicine" Physician Satisfaction — PRC Survey Rating of "Overall Quality of Care" Patient Satisfaction Monthly Mean Score (Press Ganey avg of Inpatient, ER, SDS, Testing/T herapy) Actual DCH % Excellent PRC % Excellent Meets Expect >90th Exceeds Expect >95th - New score ranks us at 98th percentile! - 59 question telephone survey. - 30–40 physicians interviewed quar terly. - 177 hospitals in PRC database. 57.5 0 Jan–Mar 02 Apr–June 02 Jul–Sep 02 52.5 31.4 48.7 48.7 10 20 30 40 50 60 31.4 31.4 DCH % Excellent PRC % Excellent New score ranks us at 92nd percentile! 89 Exhibit 3.11. Patient and Physician Satisfaction Surveys cart_14399_ch03.qxd 10/19/04 12:00 PM Page 74 DELNOR HOSPITAL 75 B. TEAM PERFORMANCE. Team performance can be measured at various levels. For example, it can be measured at the center (division), team (department), or the work unit level. Below are four or more team-based performance objectives and measures that were established by your team in collaboration with the organization’s leader- ship. One of the measures has to be a financial measure of team success. Two or more teams within the same center may share a common measure and each team within the center may have one or more measures unique to their team. A check mark will indicate your team’s achievement on each measure. Your Team Is: Emergency Department ____________________________________ Best Service: Patient satisfaction as measured by average quarterly mean scores for ER. [] 3 ϭ mean score equal to or greater than 87.8 [] 2 ϭ mean score between 86.3–87.7 [] 1 ϭ mean score below 86.3 Best People: Management of turnover as measured by twelve-month average for ER (Current 5 6.1%). [] 3 ϭ less than 10.0% [] 2 ϭ between 10.0 and 12.0% [] 1 ϭ greater than 12.0% Best Quality: Bright Ideas implemented in ER Team. Ideas must be for improvements on the team. [] 3 ϭ One Bright Idea implemented per FTE on the team (у34) [] 2 ϭ 0.5 FTE Bright Idea implemented per FTE on the team (17–33) [] 1ϭ Less than 0.5 Bright Idea implemented per FTE on the team (Ͻ17) Best Quality: Skin Care as measured by time of admission documentation of skin condition for patients being admitted as inpatient. [] 3 ϭ 90% or greater documented [] 2 ϭ 80–89% documented [] 1 ϭ 79% or less documented Exhibit 3.12. Team Goals (Continued) cart_14399_ch03.qxd 10/19/04 12:00 PM Page 75 Best Financial: Management of team financial performance as measured by the Financial Accountability Scorecard (FAS) for ER. [ ] 3 ϭ Score of 90 or better [ ] 2 ϭ Score of 80–89 [ ] 1 ϭ Score of 79 or less Best Growth: Increase in volume as measured by number of patient visits. [ ] 3 ϭ 3% or greater above budget [ ] 2 ϭ 0–2% above budget [ ] 1 ϭ less than budget Comments and Goals (Optional): Average Score of Section B: _________ (Add each score in this section and divide by the number of measures.) 76 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Exhibit 3.12. Team Goals (Continued) Note: 3 (Exceptional), 2 (Achieves expectations), or 1 (Needs improvement). cart_14399_ch03.qxd 10/19/04 12:00 PM Page 76 % Priority Support/ Goal Action Steps Time* (1–3)* Direction (1–3)* 90 Day R esult Report Best People Best Service Quality Cost Growth 90 DAY WORK/ACTION PLAN FY2003 Quarter: Leader’s name: Dept: Exhibit 3.13. Ninety-Day Work/Action Plan Note: *% Time: Percentage of leader’s time to be spent on goal. Priority (1–3): 1 ϭ high; 2 ϭ medium; 3 ϭ low. Support/Direction (1–3): 1 ϭ supervisor approval needed; 2 ϭ supervisor input needed; 3 ϭ move forward on own. cart_14399_ch03.qxd 10/19/04 12:00 PM Page 77 78 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE ABOUT THE CONTRIBUTORS Craig A. Livermore is president and chief executive officer for Delnor- Community Health System and Delnor-Community Hospital in Geneva, Illinois. He earned his B.S. degree in business from Eastern Illinois University and a Master of Hospital and Health Care Administration degree from Saint Louis University. He is past-chairman of the Metropolitan Chicago Healthcare Council Board of Directors and a member of the American College of Healthcare Exec- utives. He is also actively involved in numerous health care and community organizations. Prior to joining Delnor, Mr. Livermore was president and chief executive officer of Augustana Hospital and Health Care Center in Chicago. Thomas L. Wright is chief operating officer for Delnor-Community Health System and Delnor-Community Hospital in Geneva, Illinois. He also serves as chief financial officer of Delnor-Community Health Care Foundation and Delnor- Community Residential Living. He holds a B.S. degree in mathematics and an M.B.A. degree with a concentration in finance from Loyola University of Chicago. He is an advanced member of the Healthcare Financial Management Association, a member and past chairman of the Metropolitan Chicago Health- care Council Finance Committee, and a Diplomat of the American College of Healthcare Executives. Mr. Wright is also very active in supporting local health care and community organizations. Linda Deering is vice president and chief nursing officer for Delnor-Community Hospital in Geneva, Illinois. She holds a B.A. degree from Northern Illinois University, and an M.S. degree from Northern Illinois University. She is an active member of the American Organization of Nurse Executives, Illinois Organiza- tion of Nurse Leaders, and Illinois Coalition for Nursing Resources. In addition to her work at Delnor, she works with other hospitals across the nation to facilitate organizational excellence and culture transformation. cart_14399_ch03.qxd 10/19/04 12:00 PM Page 78 CHAPTER FOUR Emmis Communications A change management process is for creating and implementing a distinctive firm brand and fostering a unique employer-of-choice culture while driving performance, accountability and innovation to higher levels. Initiative leverages executive strategic planning and alignment, leadership-development programs, performance-management systems, employee-commitment strategies, targeted organizational communications, and special events and recognition. OVERVIEW 80 INTRODUCTION: RAPID GROWTH TO A MEDIA MID-CAP 81 Distinctive Culture 82 Internal Growth and Economic Pains 82 COMPASSIONATE EMPLOYER OF CHOICE 83 ASSESSMENT: ON THE AIR 85 DIAGNOSIS: PLUGGED IN? 86 New Business Realities: Drivers for Change 87 Change Objective 88 APPROACH 88 DESIGN: WHO’S OUR CUSTOMER? 89 INTERVENTION: GETTING TUNED IN 89 Executive Alignment 89 Malicious Compliance 91 Leading for Results 91 PROGRAM PROMOTION AND MULTIMEDIA 92 BUILDING A HIGH-PERFORMANCE DISCIPLINE: CRANKING IT UP! 94 Balanced Scorecards 94 79 S S Note: Some information in this case study was taken with permission from Emmis Communica- tions internal and public documents. cart_14399_ch04.qxd 10/19/04 12:01 PM Page 79 80 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Emmis Competency Model 95 Performance and Reward Management 95 Employee Training 95 WHAT ABOUT INNOVATION? 96 EVALUATION: MEASURING SIGNAL STRENGTH 97 January 12, 2004, Q&A with Emmis Communications CEO 98 Jeff Smulyan LESSONS LEARNED 99 Exhibit 4.1: The Eleven Commandments of Emmis Communications 101 Exhibit 4.2: Dual-Path Results Model 102 Exhibit 4.3: Executive Session FAST Agenda 103 Exhibit 4.4: Internal Communications Matrix 105 Exhibit 4.5: Balanced Scorecard Sample 108 Exhibit 4.6: Competency Feedback 109 Exhibit 4.7: Competency Linkage to Culture 110 Exhibit 4.8: Emmis Competency Model 116 Exhibit 4.9: Performance Management Insights 117 Exhibit 4.10: Performance and Reward Management Overview 118 Exhibit 4.11: Performance and Reward Management 118 Implementation Plan ABOUT THE CONTRIBUTOR 119 OVERVIEW I was certain that we could build a company that would stand for something different. Twenty years ago, radio was an industry characterized by short-term relationships—very few people ever thought of working long-term for one company, and absolutely no thought was given to building careers without moving around. I thought Emmis could create a different atmosphere. —Jeff Smulyan, CEO Emmis Communications, excerpt from twenty-year anniversary letter Emmis Communications is a small entrepreneurial radio company making the leap to being a much larger international company with holdings in various media. This change-management case study describes the systematic approach used by Emmis Communications to successfully create a distinctive firm brand and performance culture while extending the positive employer-of-choice rep- utation it had earned. Rapid growth required greater corporate structure and strategy clarification. Assimilation of newly acquired businesses required greater alignment and proactive strategies for “Emmisizing” the entire organization. cart_14399_ch04.qxd 10/19/04 12:01 PM Page 80 Under the leadership of a visionary and entrepreneurial CEO, Jeff Smulyan, the organization undertook a process of further defining its strategies, corporate struc- ture, and culture. Using a variety of processes, Emmis drove clarity and focus companywide to drive business results and build the distinctive Emmis Brand and culture. In partnership with Results-Based Leadership, Emmis implemented a cascading and collaborative process of focus, education, communication, and per- formance accountability. The initiative used many change techniques and focused on a systemwide approach. The lessons learned at Emmis Communications are important for any orga- nization undergoing a major change initiative that affects the organization’s brand, culture, performance, and business results. Companies experiencing rapid growth, overcoming entitlement behaviors, wanting to drive a distinctive culture through the company, building an employer-of-choice reputation, or evolving from a smaller company to a mid-sized company will particularly find these lessons useful. INTRODUCTION: RAPID GROWTH TO A MEDIA MID-CAP Emmis Communications Corporation (Nasdaq: EMMS) is the sixth largest pub- licly traded radio portfolio in the United States based on total listeners. Emmis owns eighteen FM and three AM radio stations that serve the nation’s largest markets of New York, Los Angeles, and Chicago, as well as Phoenix, St. Louis, Indianapolis, and Terre Haute, Indiana. In addition, Emmis owns two radio networks, fifteen television stations, regional and specialty magazines, and ancillary businesses in broadcast sales and publishing. Founded in 1980, Emmis Communications launched its first radio station, WENS-FM, in July 1981. As Emmis (the Hebrew word for “truth”) acquired more radio stations across the nation, it established a reputation for sound oper- ations and emerged as a radio industry leader and innovator. Emmis was the first broadcast company to own top-rated radio stations in both L.A. and New York, and it pioneered such concepts as the Rhythmic Top 40 and all-sports radio formats. The company launched its magazine division in 1988 with the purchase of Indianapolis Monthly, and later acquired magazines such as Texas Monthly and Los Angeles Magazine. Emmis became a public company in 1994, and moved into the world of international radio in 1997, when it was awarded a license to operate a national radio network in Hungary. In 1998, Emmis expanded into television by buying six television stations in markets throughout the United States. In the last three years, the company has added properties in each of its divisions. In fiscal 2000, the company invested more than $1.5 billion in acqui- sitions. Annual net revenues have grown from $140 million in fiscal year 1998 EMMIS COMMUNICATIONS 81 cart_14399_ch04.qxd 10/19/04 12:01 PM Page 81 to over $562 million in fiscal year 2003. Employee population in that same period grew from under 500 to over 3,100. Emmis maintains its worldwide head- quarters in Indianapolis, where the company was founded. Distinctive Culture While I never could have imagined that Emmis would grow to its current size, I was certain that it could be a company with a culture that separated it from its peers. I believed we could create great radio while treating employees well and letting them profit from our successes. I believed we could draw great ideas from every person in the company, not just the ones at the top. I believed we could win by taking risks. I believed—and this might be the most important thing—that we could have fun and still make a difference. I continue to believe those things. As a result, the approach that made Emmis unique in the media world of twenty years ago makes us even more unusual today. —Jeff Smulyan With its emphasis on sound operations, integrity, community involvement, innovation, and fun, Emmis’s culture has been lauded by both its employees and its peers. Trade publications have regularly cited the company’s leaders as being among the best in the business. In 2001, Radio Ink magazine named CEO Jeff Smulyan its Executive of the Year. Jeff Smulyan has also earned a reputa- tion in professional baseball from his ownership of the Seattle Mariners from 1989 to 1992. He is regularly interviewed by sports and news media about base- ball and the economics of the game. In 2001, he appeared as a guest on the Bob Costas Show on HBO, and in 2002, as baseball appeared to be headed for a strike, he was interviewed by a number of media. The EMMIS culture carries at its heart the belief that in order to succeed, a company must take risks, treat its people well, and give them the tools they need to win. This culture has as its foundation the CEO-authored Emmis Eleven Commandments. (See Exhibit 4.1.) The original Ten Commandments were writ- ten as part of a speech CEO Jeff Smulyan delivered at an annual managers’ meeting; the Eleventh Commandment, “Admit your mistakes,” was added later, after Jeff’s experience with owning the Seattle Mariners. Internal Growth and Economic Pains It’s hard to describe what starting the company was like in those days. I was picking all of our music, writing our commercials, buying the equipment, making sales calls . . . in short, being involved in every aspect of the station. —Jeff Smulyan By 2000, Emmis began to feel the pains of its tremendous growth. The company had historically let the divisions and entities run mostly indepen- dently, albeit with Jeff’s leadership and strong values always being visible and 82 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE cart_14399_ch04.qxd 10/19/04 12:01 PM Page 82 [...]... business realities are forcing Emmis to reinvent itself in radio and TV and develop nontraditional revenue sources while continuing to acquire new properties when feasible Making this effort more challenging is the company’s ongoing desire to complete this transformation and growth while also maintaining the industry-distinguishing Emmis culture 87 88 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION. .. overall change agenda Employee Training In February and March, 100 percent of all employees and managers went through performance management and cultural training In addition to the traditional performance-management and SMART goal development instruction, some unique, and “Emmis-like” training was delivered: two exercises, one centered 95 96 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE. .. culture, and leadership requirements into a definition of the Emmis leadership brand The Leadership Brand is a statement of what leaders stand for at Emmis; it is linked to strategy and how Emmis wants to be known by its best customers and provides a focus for leadership development activities These leaders created the following leadership brand: Emmis leaders embody deep customer understanding and quality... management system and restated objectives In making nominations, managers were encouraged to consider results more heavily than in the past, and to consider how well the employee met stated objectives This was a new approach and a significant signal to the 93 94 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE organization The executive team spent hours reviewing the nominations and made objective,... for all 30 0 participants at the 2001 Annual Emmis Managers Meeting • Exit interview data and trends • Emmis Learning training-needs assessment Informal Data Collection • HR leadership visits to a large representative group of entities, where discussions and interviews were conducted with general managers, 85 86 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE department heads, and key... Business strategy Some organization disablers Can we change inside the window of opportunity? FAST NOTES & TAKE-AWAYS Role of leadership Leadership during transformation Desirable outcomes of the workshop Change agenda What Emmis is about New business realities Forces acting upon the company Norm’s inventory of paradoxes Leadership value proposition (Continued) 1 03 104 BEST PRACTICES IN LEADERSHIP DEVELOPMENT. .. productivity In addition to this observation, some other clear themes emerged The following is the initial summary of findings that would shape the focus and approach to the organizational change initiative: • No clear, common, internal strategic planning process existed, making the prioritization of the investments, projects, and initiatives functionally driven and “opportunistic.” • Understanding and integration... objectives and the maintenance of the culture, Eleven Commandments and behavioral expectations So the hypothesis behind the evolving organizational change initiative was that clear strategy, firm brand, and culture definition with supporting communication and performance systems would result in higher levels of employee productivity and commitment, as well as distinctiveness and value to customers and investors... Emmis’s leadership realized that the development of an employment brand requires much more than slogans or value statements such as the Eleven Commandments To establish such a strong reputation, the company recognized the need to invest in programs and practices that touch its employees and community in a regular and consistent manner It would be the leadership s 83 84 BEST PRACTICES IN LEADERSHIP DEVELOPMENT. .. current state and preferred results in four areas: design and control principles, planning performance, improving performance, and rewarding performance In addition, insights were provided relative to the maturity and current state of the process compared to Stage 3 (Disciplined) organizations (Exhibit 4.9) As a result of this involvement and assessment, an annual cycle was designed incorporating compensation . era—Establishing a new standard of performance and innovation— represents the company’s intention to focus the culture in a way that leverages 90 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION. Communica- tions internal and public documents. cart_1 439 9_ch04.qxd 10/19/04 12:01 PM Page 79 80 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Emmis Competency Model 95 Performance and. FY 03 Aug FY 03 Jul FY 03 Jun FY 03 May FY 03 Apr FY 03 Mar FY 03 Fe b FY 03 Jan FY 03 Dec FY02 31 .9 31 .9 Physician Satisfaction — PRC Survey Rating of "DCH as a Place to Practice Medicine" Physician