Alan Kendricks at Cardiology Associates Harvard Case Solution & Analysis

Alan Kendricks at Cardiology Associates Case Study Solution

Problem Diagnosis

Alan Kendricks is the recently promotion medical director for the Cardiology Associates at the Southeastern Pennsylvania University Hospital (SPUH). Alan Kendricks has felt that he needed to integrate a comprehensive strategic plan for the long term profitability and success of the hospital. However, the fundamental problem faced by him was that majority of the doctors, physicians, employees and the professionals were reluctant to adopt the proposed changes that he wanted to implement in the hospital.

He needed to develop a strategy to balance the resource allocation, building an organization, running a practice, directing others, introducing technological developments into the hospital setting, taking care of patients, resolving internal conflicts and spending time with his family to balance work and life. The most persistent issue is to resolve all the dilemmas of Alan Kendricks to become a productive manager.

Key Contextual Issues

There are a number of contextual issues at SPUH and these have been briefly listed below:

  • The previous medical director, Dr. Griffiths had used a hand on collaborative approach to manage hospital staff, however, Alan was more direct and sometimes more confrontational.
  • Alan had started to become persuasive but it wasn’t helping him. He had instituted the open door policy, where anyone can come to his office and discuss their issues but this did not help and also consumed a lot of time.
  • Many did not see a need for change and majority of them resisted against the change either actively or passively.
  • Four major insurers had negotiated pay for performance targets with the hospitals and this might result in 10% charges if the targets are not achieved.
  • The senior physicians and many other staff members did not want to change the hospital systems and introduce new technological systems such as the EMR system.
  • The patient volumes had risen significantly but the physician income had been stagnant over the past few years. Moreover, Alan did not have the power to influence the pay of the physicians.
  • Training and team work was essentially important for the future challenges, however, the current physicians only recognized the solo actor approach in a punitive hierarchy. Designing an appraisal system was another challenge.
  • Finally, the last important issue related to the management of people and resource allocation, change in work of many physicians, which frustrated them and they thought that they were being assigned with the work that should be done by support staff. Allocation of support staff was another issue. How to allocate rewards to high performing doctors and how to be fair was also another issue. He specifically wanted to resolve the issues faced by five key personnel members.

Definition of Success

The definition of success in the context of the medical director Alan,who is the production manager of SPUH and implements all the proposed changes within the organization. All the support activities are performed by automated systems and the support staff is utilized effectively in other core activities. The pay for performance is implemented and annual performance appraisals are conducted. In specific quantitative terms, the Patient Revenue grows more than 10% over next 3 years; the cash expenditure stays constant at current level receivables balance, decrease in write-offs and growth as shown in exhibit 1 in appendix.

Identification of, and strategy for engaging, key champions and managing resistors

There are five key champions and resistors of change and strategies that need to be designed to engaged and overcome their resistance to change. The identification and strategy for engaging these five key personnel is as follows:

The practice managers, Jane handled all the administered support issues but thought that she was being neglected. Alan raised her pay to convince her to stay however; she wished that she was allowed to work on her own. Therefore, Alan is recommended to empower her, take her ideas and allow her independence in making decisions.....................

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