Transcript Senior - LeadingAge Oklahoma

[re]Defining Executive Leadership:
What You Need in a Next Generation CEO for
Today’s Next Generation Customer
Presented by
Senior
Oklahoma Leading Age Conference
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March 12, 2014
HCapSearchSenior:
Dedicated to Nonprofit Senior Living
Combined 70 years’ hiring experience
45 years in the senior living market
AAHSA/Leading Age leadership
Passionate about senior adults – the senior
living industry
Philosophy and approach
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The case for [re]Defining Leadership:
The Industry
Out of the Poorhouse
Caring for senior adults has long been the mission
of nonprofit, faith-based organizations
1800s – from the almshouse to Homes for the Aged
1954 Medical Facilities Survey and Construction Act
1965 Medicaid and Medicare –
Facilities up 140%; beds up 302%
1970s and 80s reforms and regulations
2000: $100 billion industry
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Post-1970s
Yesterday’s Senior Living Community
Heavily weighted toward skilled nursing
Younger residents with greater needs
Drab, institutional
Little to offer in food and amenities
Paternalistic view of the resident
and their family
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The Market
2012 CDC/NCHS Study of Long-term Care Facilities
58,500 providers serving 8 million seniors across a
continuum of services
Nearly half -- 22,200 – are residential care communities
15,700 are nursing homes
21% - 25% nonprofit run
Only about 5% with 100 beds or more
Supply of beds highest in Midwest and West
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The Market: Users
2012 CDC/NCHS Study of Long-term Care Facilities
1.4 million in nursing homes
713,000 in residential care facilities
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Today’s customer
Older entry demographic
Healthier; living longer
Higher income/net worth
Higher levels of activity and acuity
Greater wants and demands
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The New Customer : Wants and Demands
Baby Boom 1946 – 1964
78 million
Demanding demographic
‘Generation Reinvention’
Greater percentage of entrepreneurs
50 is the new 30
Dine out often – seek variety
Cruise-line mentality
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How Senior Living is Responding
Aging is about LIVING, just right-sized and with
services
Creating the “main street,” Town Hall
Open spaces where residents congregate –
grab a scone, a cup of Starbucks and read
the NY Times
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Trends
• Creating places where people “want” to live, not
where they “need” to live
• Ability to seamlessly move from independent living
to health services
• Lifelong learning and wellness centers - beyond
basic fitness
• Partnerships foster vibrant communities and
intergenerational relationships
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Trends
• Technology promotes independence, wellness
• Urban/suburban near retail and services and with
walkable streetscapes
• Affiliation -- or affinity --- housing
• Cooperative models /NORCs
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What You Can Expect for the Future
• Master-planned communities
• High-rise senior developments in 24-hour
neighborhoods
• Affiliation-sponsored housing catering to lifelong
learners, religious affiliation and even sexual
orientation
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The crystal ball
2010 LeadingAge Compensation Survey
43% of CEOs in multi-facility senior living
organizations plan to retire in the next 5 years
Implications
Unprecedented competition
May drain talent from the ranks of
freestanding communities
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Your hiring market
81% of residential care communities concentrated
in metropolitan areas
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Why you should care?
Impact of CEO turnover :
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Strategic planning
Development of new services
Capital expansion/upgrades
Marketing and brand impact
Residents
Service area
• Natural assimilation time
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New CEO: Greatest Challenges
Ever-changing regulations
Actual costs vs. perceived quality
Keeping up with the trends
service models
design
staffing
best practices
Identifying and mentoring the right staff in the
right place
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Senior Living Leadership Burnout: The Stressors
The Nature of the Job
The 2 a.m. call
Open door vs. productivity
Equilibrium
Staff turnover
Finances
Quality vs. costs
Census
The Nature of the Individual
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Coping Strategies
Work-life balance
Professional Coach
Tools to do the Job
Exercise
Delegating
Are these included as part of the annual
review?
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What Today’s New CEO Must Do and Know
Partnership with a healthcare provider
Move the community out of its own walls
Forge strong community partnerships to
provide services you can’t do
feasibly/economically on your own
Be rabid about customer satisfaction
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Traditional route to the top
Work way up through the senior living
industry
Healthcare
Faith-based
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Hospitality: The New Career Track
Penn State
New colloquium “Hospitality in Senior Living”
Matches the demographic of the new
customer
Boomers eschew nursing homes but say they
will consider rehabilitation in a “hotel-like”
facility
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Bucking Tradition
Penny McIntyre
Sunrise Senior Living
Mark Parkinson
AHCA/NCAL
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What great CEOs have in common
Passion
Often long-held
Hard to be successful without this single
quality
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What is the key to long-term success?
Today’s hiring environment features lots of
bells and whistles (OAD, Predictive Profiling)
One of the most important elements to
ensure quality hires and retention: thorough
understanding of the community’s culture
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Succession Planning
Critical function of the board
Must be fluid and timely
Can be threatening
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Succession Planning
Two general scenarios will trigger the need
Assess current situation and needs/assets
What type of transition environment will the
new CEO inherit?
Develop the framework
Process, decision making, candidate profile,
who will be involved
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Succession Planning
The internal candidate
Talent identification
Professional development plan
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Critical: A Thorough Internal Assessment
Of your community
Your resident
Your ‘brand’
Internal and External SWOT
Long-range plan and goals
Culture and history
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Often overlooked aspect that will build success
Seek to involve your
STAKEHOLDERS
In the process
Residents
Family/former family members
Foundation leaders and donors
Community partners and supporters
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Have No Fear
Turnover is only bad if ….
The risks of overemphasizing employee
retention at all costs
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What you want: The Basics
Subject-Matter Expertise
Healthcare
Aging
Activity
Wellness
Legal/Regulatory
Strong communicator
Business/finance savvy
Long-Range Planning
HR/Management
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Plus …
Understand and manage multiple bosses
Thought leader: know the trends, be able to
read the tea leaves and know what to do
about it
Project Management – to understand what it
takes to bring all the pieces together
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Plus …
Enjoys -- or at least understands the
importance of -- being out and about
Strong on relationships in the community -more and more, can’t do it on their own
anymore
Familiarity – or at least a quick learner – of the
surrounding community
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Your Search: Timeline
Week
Activity/Objective
1
Star-up; Discovery; Stakeholders
2-3
Develop position parameters
4 - 10
4 – 6 weeks intensive recruitment
11 - 12
Candidate selection
13 - 14
Interviews (Rounds One and Two)
15 - 16
Selection and Negotiation
DATE
Candidate assumes responsibilities
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The Search Process: Candidate Progression
Finalists Interview with Board
Complete Due Diligence
Conduct Round One
Panel Interviews
Present Initial Pool to
Search Committee –
Select Candidates to Interview
Narrow to Initial Pool for
Preliminary Review
Consultants Review and Interview
All Candidates – Conduct
Preliminary Background Research
Results
Marketing/Networking/
Independent Sourcing
The Search Process: Candidate Assessment
At Semi-Finalist/Finalist Stage
360-Degree Interviews with Stakeholders
Structured Candidate Presentations
In-depth Background Verification
Profile XT Performance Predictive Modeling
Intensive Qualitative Referencing
Prior to First-Round Interviews
Background Research (Education, Prior
Work History, DMV, Connections)
In-person meeting; area tour
Support for Interview Team (Questions,
Scheduling, Evaluation Tools)
Bi-weekly, or as Desired
Client updates of candidate pool via
Candidate Dashboard  Review of
Qualifications
Initial Screening
Resume Review  Verify Completeness of
Submission  Internet Research  Social Media
Search  Personal Phone Call or Meeting
Hiring Considerations
Timeline for transitioning
Contract
By any other name …
Onboarding
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The Contract
Review/renewal
Compensation
A package
Ways to get there
Performance Measurement
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Your Legal and Fiduciary Responsibilities
Due Diligence
What
Who
How
Performance Review
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Your Legal and Fiduciary Responsibilities
Executive Compensation
Increased Scrutiny
Safeharbor Rebuttable Presumption
Compensation Committee
Compensation Policies
Benchmarking Comparables
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Once Your New Leader is On Board
First Three Months
First Six Months
First Year
Good practices to put in place
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Thank you!
Contact us
Jean Bacon
[email protected]
804-301-4402 (direct)
Jennifer Furla
[email protected]
816-591-5493 (direct)
Laura McCray
[email protected]
913-558-1713 (direct)
Senior