2008 presentation that discusses the challenges associated with successfully recruiting and retaining the right CEO candidate. See more at: http://www.integratedhealthcarestrategies.com/knowledgecenter.aspx.

1. www.IHStrategies.com
WSHA Governance Web Cast Series
CEO Selection: Getting it Right
Exclusive to Healthcare. Dedicated to People. SM
Presented by:
Jane Groves, Executive Vice President and Practice Leader
Roger Samuel, Vice President
MSA Executive Search
September 18, 2008 | 12:00 – 1:00 p.m.
Web login: www.presentpluspro.com/wsha21; password ‘wsha’
Audio login: 1-888-373-5705; ID code 190240#
(For audio assistance at show time, call 1-866-427-5234)

2. Presenters
Roger Samuel
Vice President
Jane Groves
Executive Vice President
and Practice Leader

3. Why we’re here with you today . . .

4. 75% of Washington hospitals have experienced
CEO turnover in the past three years
The average tenure of a U.S. healthcare CEO is
5.4 years, with a median tenure of 3.7 years
40% of new CEOs terminate within 18 months
An average of four senior executives will follow
the exiting CEO in the first year

5. The Role of the Board:
To hire and evaluate the CEO

6. “Hiring a CEO is a two-way process. The Search
Committee chooses a candidate, but the prospective
CEO assesses whether the organization represents a
good career move and a place where he or she can be
successful.”
Barry Bader
Board Consultant

7. The Role of the Search Committee:
To act as a proxy of the full Board in
the hiring and selection process,
ideally resulting in a unanimous vote
of support.

8. Search Committee Makeup:
3 - 5 Board members at-large
2 - 3 members of the Medical Staff
Ideal Size: 5 – 8 members

9. Other Issues to Consider:
Should the Committee include influential
community members not on your Board?
Should Nursing be represented on the
Committee?
Should your Board Chair lead the Search
Committee?

10. Your Search Committee has been
formed . . .
NOW WHAT?

11. Search Firm, or On Your Own?
Managing the Process
Objectivity

12. “Do not try as a Board to take on the job of
recruiting. The reason not to do it is because
you don’t know HOW to do it.”
Frank Taylor
Medical Center Board Trustee
“The search firm is going to help you with a
decision that is probably the most important
decision you (the Board) will ever make.”
Michael Doody
Witt/Kieffer

13. Managing the Process –
What to Consider
A realistic timeline
Communications and expectations
Maintaining confidentiality
The media

14. Goals
Reducing the margin of error
Matching your organization’s needs, values, and
culture, and the candidates’ experience, skills,
personal attributes, and values

15. Learn as much as you can about
– the expectations, challenges, and opportunities the
new CEO will be facing. Objectively evaluate your
organization from the viewpoint of prospective
candidates
– your potential candidates
How?

16. “The work the trustees do before they interview their first candidate
could determine whether that candidate is a good fit for the hospital
– and whether the hospital will be able to convince the candidate to
come aboard.”
Martha Hauser
Witt/Kiefer
The CEO Profile is the Cornerstone
of the Search Process . . .
“A pitfall is when you start moving toward trying to identify a
candidate before doing the really hard work of saying what the
needs are.”
Jane Groves
Executive Vice President
MSA Executive Search

17. Competitive landscape
Why is the position open?
The financial health of the institution
Issues and culture of the Medical Staff
The strength of the Senior Team
Technology and other capital needs
Challenges to providing quality patient care
Patient, physician, and employee satisfaction scores
and trends
Strategic and capital plans
The CEO Profile

18. Goals of the Search Process
The personality, personal values, leadership
attributes, and skill set to succeed in your
organization.
The desire to move oneself, spouse, and family
to your community and join your organization.
To identify and screen candidates who possess:

19. Dissecting the Resume . . .
The importance of length-of-stay and departures
in the candidate screening process
Look for results and accomplishments relevant
to the needs of your organization – not just
responsibilities
Use your Strategic Plan as a guide

20. Professional References: determining the
reputation and track record of your candidates
from a 360-degree perspective
Verification of education, employment history,
credit, and criminal records
Use of a leadership assessment tool
Completing a Comprehensive
Candidate Profile

21. The Internal Candidate
Create an even playing field
Evaluate and present through a new lens
Ensure a positive experience
Prepare for retention or transition

22. You have your slate . . .
NOW WHAT?

23. Interviewing
Both an objective -- and a subjective --
evaluation process of top candidates
– An opportunity to RECRUIT !

24. Easy and convenient access to your community and
your institution
One location, if possible
Build in time for breaks
Coordinate questions
Special needs?
Hospital/campus tour
Group interviews
Keys to On-Site Candidate
Interviewing

25. Round One:
– Keep it Simple. The goal is to narrow the field from 4 – 6
candidates to the final 2.
– Meet with the Search Committee as a whole
– Allow each candidate to make a short presentation to
the Committee
– Coordinate a private meeting or meal with the Board and/or
Search Committee Chair
– Limit to one day
Recommend a Two-Round
Interview Process

26. Round Two – Key Interviews Include:
– Key members of the Medical Staff
– Board Committee Chairs (for informational purposes)
Other Events:
– Community tour (candidate and spouse)
– Realtor or community guide?
– Board social event (candidate and spouse)
Recommend a Two-Round
Interview Process (continued)

27. Other Resources to Access
Interview question guides (behavioral, etc.)
High Impact Interview Questions
- Victoria Hoevemeyer
96 Great Interview Questions to Ask Before
You Hire
- Paul Falcone
Candidate evaluation tools

28. “At the end of the interviews, you have a culmination of knowledge –
not just what’s set out in front of you, but behaviors you’ve observed
over the course of four or five hours of individual and group time
with each candidate.”
Larry Tyler
Tyler and Company
Making the Final Decision . . .
Access and assess all the information gathered
thus far in the process

29. THEN . . .

30. Trust Your Instincts

31. Benefits
– Clearly signals to the Medical Staff and community that your new
CEO has the strong support of the Board. Can be a major draw
in recruiting a superior CEO.
Considerations
– Contract duration
– CEO’s duties and responsibilities
– Compensation and benefits, including incentive opportunities
– Termination and severance provisions
The CEO Contract

32. Timing and coordination with a resignation
Who needs to know first
Who needs to know in person
Informing the unsuccessful candidates
Considerations in Making the
Announcement

33. Courtship to Marriage ... Now What?
Consider morphing the Search Committee into
a CEO transition team to plan:
Introducing key leaders and members of the medical
staff
Assimilating your new CEO and family to the community

34. “It accelerates the process of assimilating a new executive into the
organization. You manage it rather than leaving the executive to
walk blindly and alone into new situations.”
Jane Groves
Executive Vice President
MSA Executive Search
Key Resources
Your Physician Recruiter
Human Resources/Organizational Development
A Recent Executive Hire

35. The Board Chair will be accessible and clear with expectations and
feedback.
Have a plan in place for leadership continuity at the Board level. Will the
current Board Chair be in place for at least another year, and is a successor
in line?
Understand and practice a clear delineation in responsibilities – between
governance and management – between the Board and the CEO. The
Board runs your hospital, but good Boards delegate the vast majority of that
responsibility to the CEO.
How Your Board Can Best Support
Your New CEO:

36. Be engaged and prepared to invest time in Board education and strategic
planning – and committed to consistent self-evaluation and improvement.
Be prepared to address any Board dysfunctions and disruptive members
appropriately, and in a timely manner
Be tolerant of, and prepared for, some turmoil and unexpected staff turnover
– and a few missteps along the way.
How Your Board Can Best Support
Your New CEO (continued)

37. The Main Reasons CEOs Stay
0% 10% 20% 30% 40% 50% 60% 70%
Compensation
Satisfied
Loyalty/Commitment
to Organization
Relationships
Community Ties 64%
64%
44%
28%
8%
Source: HR Pulse Magazine, Fall 2008

38. Thank You For Your Participation!
We Look Forward to Your Feedback.
Jane Groves
Executive Vice President – Practice Leader
MSA Executive Search
jane.groves@ihstrategies.com
816-795-1947
Roger Samuel
Vice President
MSA Executive Search
roger.samuel@ihstrategies.com
816-795-1947