Issue link: https://beckershealthcare.uberflip.com/i/821337
43 43 CEO/STRATEGY What Kaiser Permanente CEO Bernard Tyson Learned as a Patient in His Own Hospital By Tamara Rosin W hen Bernard Tyson, chairman and CEO of Oakland, Calif.-based Kai- ser Permanente, knew something didn't feel right, he called his cardiologist im- mediately and went straight to the emergency room. ere, he experienced firsthand what happens in a Kaiser ER. "In that moment where your health is on the line, it doesn't matter what position you hold or what resources you have or don't have. e important things that matter are being able to continue living your life and overcoming all of your fears when your body isn't acting normal- ly. It was scary and I was scared," Mr. Tyson, who heads the 38-hospital nonprofit system and health plan with more than 11.3 million members, wrote in a LinkedIn post about his experience receiving care from the health sys- tem he leads. Mr. Tyson explained that since having heart surgery 11 years ago, he has worked hard to improve his health. Now, finding himself back in the ER, Mr. Tyson put himself in the hands of Kaiser's physicians and nurses. Aer X-rays, an ultrasound and other tests, the team of cli- nicians identified the issue and stabilized him. "My prognosis depended on the ability of my physicians to guide me — both mentally and physically — through an explanation of what was happening in my body and the options that were available to me," wrote Mr. Tyson. e next week Mr. Tyson would require an- other heart procedure. ere, "I experienced firsthand the medical excellence we deliver." He said the interventional cardiologist he met with was "incredible." "e way he described what he was going to do and how he would do it made me feel like I was meeting with an artist — and perhaps this is the highest level of art and science one can do because it sustains life," he wrote. "e procedure went exceptionally well. ey were able to go into my heart, fix the problem and return me to health in a matter of days. I have fully recovered to enjoy life with my family and to lead this incredible organization." Mr. Tyson's post is his personal tribute to phy- sicians, whose "dedication, expertise and pro- fessionalism" restored his health and works to support that of the 11.7 million members of Kaiser Permanente who seek care from Per- manente Medical Group's 22,600 physicians. "Physicians work 24 hours a day, seven days a week and 365 days a year. ey work early, late, and on weekends and holidays. In addition to advocating prevention through diet and ex- ercise, they manage complex and critical care with their knowledge, capabilities and world- class leadership for our patients and for the medical profession," Mr. Tyson wrote. "I love my job, but I am not a physician. at's why I want to say thank you to our physicians." Mr. Tyson wrote that while he's always admired and respected Kaiser's physicians, he walked out of the hospital with even more gratitude for what they do. "ank you for giving me more years, new memories and beautiful mo- ments to come. I salute you," he wrote. n 4 Symptoms of Strategic Inertia By Tamara Rosin "I nnovation" is a favorite buzzword across all indus- tries. Despite attempts to integrate innovation ef- forts into strategy, companies often find themselves in a state of strategic inertia, or an innovation plateau, ac- cording to an article in the Harvard Business Review. The author, Alejandro Ruelas-Gossi, PhD, a professor of strat- egy at the University of Miami School of Business Adminis- tration, says the greatest indicator of the innovation plateau phenomenon is the decline in corporate investment in re- search and development. Investment in R&D has dropped from over 2 percent of U.S. gross domestic product in the 1970s to 0.78 percent today. "The less science, the fewer ideas for new businesses," Dr. Ruelas-Gossi wrote. CEOs must have the ability to recognize when their orga- nizations are struck with strategic inertia. He says there are four main symptoms to look out for, according to the article. 1. Fixation on cost-reduction programs. Dr. Ruelas-Gossi wrote that CEOs tend to focus on reducing the denomi- nator (costs) instead of growing the numerator (revenues). The primary reason for this is executives believe lowering costs is the easiest and quickest way to grow the "quo- tient," a mindset that Dr. Ruelas-Gossi says is akin to "orga- nizational anorexia." "Lean is a powerful management tool, but having the 'ex- act' number for efficiently doing the 'work' of today jeopar- dizes the future by not having 'extra' people thinking on it," he wrote. "Efficiency is not innovation." 2. Obsession with heeding to the customer. Although it's imperative to an organization's business to understand and address consumers' wants and demands, great CEOs understand that it is the firm's responsibility to define val- ue, not the customer's. Dr. Ruelas-Gossi quotes Steve Jobs, who famously asked, "Am I really going to ask customers if they want an iPad?" 3. Hyperfocus on incrementalism. Although "small ball" can be an effective growth strategy in the short term, radi- cal innovation is often absent from CEOs' agendas, accord- ing to Dr. Ruelas-Gossi. 4. Fixation on acquisitions. CEOs seek new talent when they hit an innovation plateau, according to Dr. Ruelas-Gos- si. He says that the most innovative firms tend to make fewer acquisitions. Instead, these CEOs focus on "devel- op[ing] the talent inside, focusing on a few great things," he wrote. n