Persuasion

Transformation through Persuasion

• Product of 1996 merger between
Beth Israel and Deaconess
Problem causes:
 Misguided focus on clinical
practice than backroom
integration
 Failure to cut costs
 Inability to execute plans
and adapting to changing
conditions
• End result:
 Loss of $50 million a year
 Strained relations between
the administration and
medical staff &
management and BOD
 Demoralized employees
 Pressure on the board to sell
BIDMC

• President & CEO of the
BIDMC from 2002-11
• Previously: Executive Dean
at HMS; faculty at MIT;
Executive Director of
MWRA etc.
• Claim to fame: Architect of
Boston Harbor Cleanup, a
multibillion-dollar
pollution-control project

Develop Plan Implement Plan
PHASE 1: Convince employees why the radical change is
needed; Show why the new direction is the right one
PHASE 2: Position and Frame initial plan; Gather
feedback; Announce final plan
PHASE 3: Manage employee mood through constant Communication
PHASE 4: Reinforce Behavioral guidelines to avoid
backsliding
Persuasion
Process
Turnaround
Process
Announce
Plan

• Delivered both the bad news and
the chances of success honestly
• Pointed out positives of
organization first
• Openly mentioned threat of sale
• Signaled the planned actions
• Promised open management style
• Disclosed situation to Newspapers
• Published 3rd party Hunter report
to the staff
• Personally responded to e-mail
suggestions for improvement
PHASE 1: Convince employees why the radical change is
needed; Show why the new direction is the right one

PHASE 2: Position and Frame initial plan; Gather
feedback; Announce final plan
• Sent detailed e-mail detailing
turnaround plan and its impact
• First part: mollify critics and reduce
the fears of doctors and nurses
• Second part: told what to expect;
details of turnaround plan
• Third part: responded to
prospective concerns; critique of
past plans
• Fourth part: drove home the need
for change; emphasis on collective
effort

PHASE 3: Manage employee mood through constant
Communication
• Empathized in an e-mail after
layoffs, “This week is a sad one…it
is hard for those of us
remaining…offices are emptier
than usual”
• Followed it up with positive,
upbeat emails, “If the Patriots can
do it, we can, too.”
• Mails to keep employees focused
on hard work; sent out FAQ e-mail
giving favorable view of progress
to date
• Emails to praise employees lavishly
• Convening a series of open
question-and-answer forums

PHASE 4: Reinforce Behavioral guidelines to avoid
backsliding
• Developed guidelines for behavior
and insisted on compliance
• Introduced new standards of
interpersonal behavior
• Open criticism to reinforce new
norms while curbing disruptive
behavior
• Delegating critical decisions and
responsibilities to practice new
WoW
• Insisted that employees work
through difficult issues themselves
• Intervened personally and coached
employees on basic skills
• Praised participants’ willingness to
disagree publicly and debate

• Reported $37.4 million net gain
from operations within 3 years
• Revenues were up, while costs
were sharply reduced
• Decision making was crisper and
more responsive
• Morale was up
• Nursing turnover dropped 80%

Persuasion

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Editor's Notes