Organization Design

Its also big news today for Hospitals.  However, Dr Cosgrove implies...it is not on the radar of many.  However he points out the evolution that is taking place.  More specializations - we knew that.  More consolidations - we knew that too. However, most may not be so familiar with the fact that as many as 25% of hospitals are in the red.

Or they may not be so familiar with the massive increase in complexity in two big areas:

1. Knowledge Complexity:  Dr Cosgrove points out that the amount of knowledge needed requires support from systems and other professionals.  Stand alone physicians are looking for alternatives
2. Back Office Complexity.  This is not just a function of new healthcare legislation.The number of office staff in most practices has exploded over the past two decades reflecting the challenge of keeping up with complexity.  Dr. Cosgrove points to this as one of the reasons for the growth of large mega-systems.  

Other industries who have gone through similar transitions and the ones most successful are those who:

• Do a great job at integrating cultures and/or
• Master organization design to remake hospitals into result based services supported by highly collaborative work systems.

The skill of focus is the first "integrating cultures".  However, to really win the game design of collaborative service systems will need tobe in the skill set of any successful healthcare leader.

Re-design is happening but too slowly to offset the costs of getting it wrong.

Billy Bennett is CEO of Pyramid ODI

www.pyramidodi.com