Assessment 3 Instructions: Financial Leadership

Assessment 3 Instructions: Financial Leadership

Script/Speaker Notes

Objective

Healthcare organizations use massive resources to provide patient care. They invest heavily in technologies, employee training, and recruiting competent staff. Like other organizations, they can only remain viable by meeting their financial targets. Accordingly, robust leadership is crucial to influencing leadership priorities. The healthcare staff should be guided to achieve the set financial targets and remain motivated in everyday care. The purpose of this presentation is to provide a leadership plan for Mayo Clinic to achieve its financial targets. The environmental analysis illustrates the focus areas, while the gap analysis shows the financial targets which the leaders should use to inspire teams.

Environmental Analysis

Strengths to boost finances

Organizations’ leaders cannot make informed decisions on leading teams without a clear view of the operating environment. A scan of the internal and external environment helps identify gaps that affect finances, threats, and strengths that can be leveraged to improve financial performance. One of the key Mayo Clinic’s strengths is adequate senior nurses. They are a valuable resource for leadership and mentorship to junior nursing staff. Such guidance and support are instrumental in reducing turnover, a significant barrier to achieving financial goals (Dewanto & Wardhani, 2018). The other strength is a robust financial system. It can cope with market alterations, evident in its ability to cope with variability during the COVID-19 pandemic. Other financial boosters include a developed brand and the willingness to invest in performance improvement projects.

 

Internal weaknesses

To set realistic financial targets, organizations and specific departments should be aware of the causes of the financial gaps. Internal weaknesses are a leading cause. The organization’s environment scan revealed significant weaknesses to revenue generation, including reduced return on investment, particularly due to the underuse of technological assets (Mayo Clinic, 2022). The return on assets does not match the desired targets. Other weaknesses include reduced ability to retain professionals, demonstrated by the nurse turnover. High turnover increases spending on hiring and training (Lockhart, 2022). It further triggers nurse shortage, leading to patient dissatisfaction. Dissatisfied patients reduce hospital visits and referrals, leading to a proportional decline in revenue.

The external environment overview

The organization’s departments should be keen on external factors, particularly opportunities and threats to financial strengths. A great option for increasing financial strength is reduced cost in market entry, implying that Mayo Clinic can reach more markets beyond the current focus. The current operating environment is characterized by changes in the technology landscape, presenting more revenue-generating opportunities for an organization committed to investing in performance improvement. However, there are significant threats too. Among many, the threats of new entrants cannot be overlooked. It requires Mayo Clinic to be highly innovative and invest more in creative opportunities. Government regulations have also increased, particularly during the Covid-19 pandemic, as the government requires health care organizations to develop measures to minimize physical contact (Monaghesh & Hajizadeh, 2020). Mayo Clinic must respond accordingly.

 

Financial Targets, Indicators, and Measurements

Two Financial Targets

Organizational departments seeking to achieve better financial performance should work using financial targets. Such targets will enable departmental heads and managers to adopt issue-centered interventions to achieve measurable and attainable goals. The first financial target is a 20% return on assets (ROA). Achieving this target implies more use of the current technological resources whose underuse has been a significant problem as far as attaining financial target is concerned (Mayo Clinic, 2022). The other realistic financial target is 85%+ employee retention. It is a target specifically for the human resource department as the main department responsible for employee hiring, empowerment, appraisal, and firing.

Indicators and Measurements

Various performance indicators and measurements have guided the development of the financial targets. Regarding return on assets, the key indicator of financial improvement in this area will be a quarterly improvement in the ROA. Mayo Clinic had $15.6 billion in revenue in 2021, with a ROA of 34.1% (Mayo Clinic, 2022). A higher ROA is required to reduce high budget variations and increase revenue and profit margins. Concerning employee retention, there have been issues to do with employee satisfaction that should be addressed to improve employee retention. Success indicators and measurements in this area involve a gradual reduction in monthly nurse turnover and reduced spending on hiring and recruitment.

Gap Analysis

The variance shows the difference between the current and desired outcomes. As earlier mentioned, the clinic achieved a ROA of 34.1% in 2021 (Mayo Clinic, 2022). The target is 50%, implying that achieving the 20% increase will close the 15.9% variance. The gap is on nurse retention, which affects financial targets achievement by increasing hiring and placement expenses (Campbell et al., 2020). The ideal target is 85% retention, implying a variance of 10%. Overall, both gaps are a human resource issue since empowering nurses to use modern health technologies and addressing their dissatisfaction will improve performance outcomes. Accordingly, nurse leaders should focus more on nurse satisfaction.

Leadership Plan

Closing the Financial Gaps

Mayo Clinic requires leadership committed to change. The current workforce needs motivation, training, and inspiration to use technologies and reduce turnover. As a result, the human resource department should use a transformative approach. According to Seljemo et al. (2020), transformational leadership inspires followers to achieve a shared vision. Such leaders advocate for change and provide the necessary resources and a healthy environment to achieve the set goals. Some of the changes required to reduce the financial gaps include on-job mentorship programs and intrinsic motivation. Mentorship enhances routine supervision, further improving nurses’ experience on compassionate care. Training nurses would be pivotal in enabling them utilize the new technologies for self and patient satisfaction.

Strategies for Effective Team Leadership

Although transformative leaders are visionary and inspirational, several strategies are vital to keeping the workforce motivated and united. One of the most effective strategies is working toward a clear vision and remaining objective throughout the plan. Nurses must be adequately informed about the need for changes and training and why they should mentor junior staff. Motivation can be through awards for excellence (material or non-material) or recognition. Working towards change requires shared decision-making, which cannot be achieved if leaders do not actively listen to their followers. As a result, leaders must be attentive to the nurses’ concerns and ensure that the teams to lead change are inclusive and diverse as possible.

Conclusion

As discussed in this presentation, Mayo Clinic should work towards a better ROA and employee retention. The two areas have impeded financial growth significantly, given that gains from resources are far from achieving the return targets. Nurse turnover has been a genuine concern due to nurse dissatisfaction. The organization has been spending massively on nurse recruitment and training to replace the lost workforce. In response, Mayo Clinic must focus on better resource use (technologies) and employee retention. Transformational leadership is the most ideal for inspiring employees through change. Such leadership will introduce mentorship programs and ensure nurses are adequately trained to use modern health technologies.

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References

Campbell, K. A., Van Borek, N., Marcellus, L., Landy, C. K., Jack, S. M., & British Columbia Healthy Connections Project Process Evaluation Research Team. (2020). “The hardest job you will ever love”: Nurse recruitment, retention, and turnover in the Nurse-Family Partnership program in British Columbia, Canada. Plos One, 15(9), e0237028. https://doi.org/10.1371/journal.pone.0237028

Dewanto, A., & Wardhani, V. (2018). Nurse turnover and perceived causes and consequences: a preliminary study at private hospitals in Indonesia. BMC nursing, 17(2), 1-7. https://doi.org/10.1186/s12912-018-0317-8

Lockhart, L. (2020). Strategies to reduce nursing turnover. Nursing Made Incredibly Easy, 18(2), 56. doi: 10.1097/01.NME.0000653196.16629.2e

Mayo Clinic. (2022). Mayo Clinic – Mayo Clinic. Mayoclinic.org. Retrieved 15 February 2022, from https://www.mayoclinic.org/

Monaghesh, E., & Hajizadeh, A. (2020). The role of telehealth during COVID-19 outbreak: A systematic review based on current evidence. BMC Public Health, 20(1), 1-9. https://doi.org/10.1186/s12889-020-09301-4

Seljemo, C., Viksveen, P., & Ree, E. (2020). The role of transformational leadership, job demands and job resources for patient safety culture in Norwegian nursing homes: a cross-sectional study. BMC Health Services Research, 20(1), 1-8. https://doi.org/10.1186/s12913-020-05671-y

Create a 10-12-slide PowerPoint presentation that communicates a leadership plan to address financial gaps within your organization. Use Kaltura or another technology to narrate and record a 10-15-minute audio presentation.

Note: You are strongly encouraged to complete the assessments in this course in the order in which they are presented.

To remain viable, health care organizations need leaders who can meet financial targets by effectively leading their teams. Whether you work for a nonprofit, for-profit, or government facility, financial goals and targets will influence your leadership priorities. These internal benchmarks, when considered with respect to finite, available resources, create leadership challenges for maintaining fiscal and clinical balance. You may recall a quote from Irene Krause, who started the idea of “No Margin, No Mission.” So, regardless of what your corporate structure might be, all leaders must contribute towards the financial health and profit margin of the organization.

Demonstration of Competency

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

Competency 3: Analyze characteristics of effective team leadership. (L5.4, L26.5, L1.4)
Analyze evidence-based strategies of effective team leadership in a plan to motivate team members to achieve departmental financial targets within a health care organization.
Competency 4: Examine how financial forecasts guide organizational leadership. (L8.4)
Identify financial targets, including performance indicators and measurements, for a department within a health care organization.
Analyze gaps in financial targets versus YTD performance or goal attainment for a department within a health care organization.
Propose a leadership plan to close identified financial gaps for a department within a health care organization.
Competency 5: Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care administration. (L6.1, L6.2, L6.3, and L6.4)
Develop a presentation that is clear, concise, well organized, and appropriate for internal stakeholders.
Preparation

Before you create and submit your deliverables, complete the following:

Revisit the environmental analysis conducted in Assessment 1. If you did not conduct a PEST analysis in Assessment 1, consider the possibility of conducting one now to examine the larger industry context in which your organization’s financial forecast is developed.
You can use the PEST Analysis Template [DOC] to help guide your analysis.
Select and identify two financial targets for your department, along with the performance indicators and measurements. For example: x% compliance with coding, 90% + rating for patient satisfaction scores (on a 1–5 scale), 5% profit margin for service line Y, and so on.
Look for professional or scholarly journal articles on characteristics of effective team leaders and strategies for leading effective teams. You will need a minimum of five articles to use as resources for this assessment.
Instructions

This assessment has two parts.

Part 1: PowerPoint Presentation.
Part 2: Audio Recording.
Read the requirements for each part carefully.

Part 1: PowerPoint Presentation

Create a PowerPoint presentation you could present to internal executive stakeholders. The presentation needs to briefly and succinctly communicate your leadership plan to address financial gaps you have identified within your department.

Organize your PowerPoint slides in a way that makes sense for your organization. Be sure your slides include the following elements:

An overview of the environmental analysis from Assessment 1, with a financial focus.
The two identified financial targets for your department, along with the performance indicators and measurements.
A gap analysis of financial targets versus YTD performance or goal attainment. Include your observations, trends, and insights.
An evidence-based leadership plan to address the identified gaps.
Analyze the organizational culture and strategic direction, along with strategies for leading your departmental team that consider your strengths and are supported by credible professional resources. You may include team incentives such as profit sharing, or other benefits (tuition reimbursement, seminars, software, HFMA memberships, and other incentives) to motivate your team.
Include your leadership style, the method that you use or will use with your team, and inclusion of evidence-based leadership approaches.
You may choose to organize your slides in the following fashion:

Cover slide: Topic, course, your name, name of the organization this would be for, and date.
Objective: Example – “Leadership plan to support goal attainment of organizational targets.” Customize to fit your needs.
Environmental Analysis (1–3 slides): SWOT analysis from Assessment 1 synthesized down to 3–5 bullet points with salient, high-impact, relevant points. You may also wish to conduct a PEST analysis to help inform your development of points.
You may wish to make use of the PEST Analysis Template, if you wish.
Related Scoring Scoring Guide Criteria:
​​Identify financial targets, including performance indicators and measurements, for a department within a health care organization.
Organizational Directive: Your two identified financial targets, along with performance indicators and measures.
Related Scoring Guide Criteria:
​Identify financial targets, including performance indicators and measurements, for a department within a health care organization.
Gap Analysis: Actual versus target variance, followed by your observations and insights (3–4 bullet points).
Related Scoring Guide Criteria:
Analyze gaps in financial targets versus YTD performance or goal attainment for a department within a health care organization.
Leadership Plan (2–4 slides): 2–4 evidence-based recommendations, including your strategies for leading your team; your leadership approach; and methods, metrics, insights, and observations.
Related Scoring Guide Criteria:
​Propose a leadership plan to close identified financial gaps for a department within a health care organization.
Analyze evidence-based strategies of effective team leadership in a plan to motivate team members to achieve departmental financial targets within a health care organization.
References: Include authoritative sources only. Use numbered footnotes in your slides. Follow APA format for references.
Related Scoring Guide Criteria:
​Develop a presentation that is clear, concise, well-organized, and appropriate for internal stakeholders.
Other: You may certainly choose to add graphics and special effects, but these additions will not impact your evaluation either positively or negatively.
Part 2: Audio Recording

Related Scoring Guide Criteria:

Develop a presentation that is clear, concise, well-organized, and appropriate for internal stakeholders.
Use Kaltura or another technology to record a narrated presentation of the main points. Before you begin recording, you may find it beneficial to write a script or detailed outline that you can refer to as you record. Keep in mind that you will typically have no more than 10 minutes to present your PowerPoint and answer questions. The presentation you record should not be longer than 10–15 minutes.

Consult Using Kaltura [PDF] for help and more information if needed.

Include the notes or script of your audio recording. You may choose to include this in the form of the completed Notes section of the PowerPoint presentation slides, as a script you may have used when you created your recording, or in the form of a detailed outline. This will serve to clarify any insufficient or unclear audio, or if you cannot complete the audio recording. Note: If your notes or script are not included in the PowerPoint presentation, please include them in a separate document along with the other presentation elements.

Additional Requirements

Structure: Include a title slide and reference slide.
Length (Part 1): 10–12 slides.
Duration of audio recording (Part 2): 10–15 minutes.
References: At least five current scholarly or professional resources.
Format: APA format for references and citations only.
Font: Use a font that is consistent with the expectations of your organization, for example, Times New Roman, Arial, or Calibri.