Rotman Management Winter 2016

rotmanmagazine.ca Our mobile-friendly site makes browsing fast and accessible wherever you go! INCLUDES: • Exclusive interviews with thought leaders like Linda. A Hill, Max Bazerman, Paul Osterman, Roger Martin, Amy Edmondson and MORE • The latest research from leading academics at Rotman and other top schools like Harvard, Stanford and Wharton • Videos of guest speakers and Rotman faculty • Recommended must-read business books “Talented people don’t want to follow you into the future; they want to co-create it with you.” – Linda A. Hill, Harvard Professor and Thinkers50 Member DIGITAL SUBSCRIPTIONS SUBSCRIBE TO THE PRINT &DIGITAL COMBO! Enjoy reading Rotman Management on the platform of your choice with a digital subscription. Available on Zinio, Pocketmags, iTunes, and Magzter. rotman. utoronto.ca/digital BACK ISSUES Missed an issue? Visit: rotman.utoronto.ca/backissues CONNECT WITH ROTMAN MANAGEMENT! Join the conversation on Twitter @RotmanMgmtMag Get inspired on Pinterest pinterest.com/rotmanschool Visit our YouTube channel Speaker series…

HEALTH — FOR BOTH INDIVIDUALS AND ORGANIZATIONS — is the result of a wide variety of everyday behaviours and choices. Globally, health issues are being shaped by four key drivers: increasing life expectancy, an aging population, increasing chronic disease on the horizon and constant technological advances. Add empowered consumers and disruptive new entrants to the picture, and a new era in healthcare is emerging. PwC has dubbed it ‘The New Health Economy’, and globally, it is worth US$9.59 trillion. The opportunities presented by this scenario are not being lost on business. Of current Fortune 50 companies, 38 have a major stake in healthcare — and 24 of those are new entrants. Some well-known brands are expanding their offerings: Ford is developing services for chronic-condition management; Time Warner has partnered with the…

Peter Drucker referred to healthcare organizations as ‘the most complex form of human organization that we have ever attempted to manage’. Do you agree? I do, for a number of reasons. First, there are so many well-intentioned people working within the healthcare system, but they don’t entirely agree on what the system’s goals are. Some believe the goal is ‘to extend life’, full stop; others believe it’s ‘to extend life, given the resources available’. There are also genuine disagreements about how to achieve these goals. Whenever you have lots of well-intentioned people framing a challenge differently, you get complexity. Another reason is that healthcare organizations have lots of moving parts, but they’re not machines — they’re social systems. As a result, when you change one part of the system, you often unintentionally…

The CEO of one of Ontario’s 14 Local Health Integration Networks says it’s time to focus on system leadership. Ontario’s Local Health Integration Networks (LHINs) have been called the ‘air traffic controllers’ of the healthcare industry. Can you describe your mandate? In the Southeast LHIN, which I oversee, we have accountability agreements with 120 different organizations. While we don’t run these organizations, we are responsible for managing the entire system. Our specific mandate has six components to it: local health system planning; efforts to integrate the system by bringing organizations together to work cooperatively; funding the organizations (we allocate CAD$ 1.1 billion per year to our 120 members); accountability (we hold every organization accountable for the funding they receive through performance metrics that are publicly reported); and lastly, we’re responsible for engaging…

You have said that healthcare is in the midst of a ‘Gutenberg moment’. Please explain. Back in the 15th century, books were extremely costly to produce, and as a result, less than eight per cent of the population of Europe was able to read. Only the church and the wealthiest citizens could access the collected works of humankind in written form. For everyone else, knowledge and stories were communicated orally. Then Johannes Gutenberg came along and invented the printing press — and overnight, knowledge and information were democratized. Perhaps nothing in human history has had such a momentous impact on society. I see many parallels to that era today, with the widespread embrace of the smartphone. This is an extraordinary time in healthcare: we are witnessing nothing less than the democratization of…

FOR MORE THAN 20 YEARS, leaders around the world have been fascinated by the Toyota Production System. The system — known as ‘lean’ — has made the automaker one of the most successful and admired companies in the world, and as a result, the benefits of applying lean manufacturing principles to any kind of organization are now well known greater profitability, higher quality, lower costs, and improved employee engagement — to name a few. Unfortunately, while many have tried, few organizations have actually achieved a lean transformation. The reasons for this are varied: some leaders can’t make the intellectual leap required to translate a system from auto manufacturing to, say, healthcare or banking; and in other cases, the Japanese jargon — heijunka, kanban, muda — is too high a hurdle to…