Do you have the Right Management Style and Culture for Your Senior Care Business?

by Art Carr

(For more information about improving the culture and leadership in your business, contact Art for a free 30 minute consultation 615-414-5217)

Various business publications, college curriculum, CEOs and Boards of Directors have debated the relative merits of Theory “X” vs Theory “Y”, autocratic vs permissive and other management styles for years.  There is no right or wrong management style, although certain styles may be preferable at specific stages in the evolutionary cycle of the business.

The important factors are a) that the strengths, personality, preferences and management style of the CEO and key managers match the entity’s business culture and are conducive to its mission and values, and b) that the culture and management style are appropriate for the company’s current situation.

•  A laid-back management style with a PERMISSIVE[i] culture might be ill-equipped without enough “sense of urgency” to lead a turnaround.
• An ENTREPRENEUR might be considered a disruptive influence for a highly structured, bureaucratic organization that places an emphasis on maintaining the status quo.  On the other hand, the entrepreneurial spirit is very helpful in turning a start-up vision into a viable product à directing the process at a rapid pace as the concept is tested and proven with changes in the original idea or implementation plans.
• An AUTOCRATIC manager will be more successful in a company with strong centralized controls and top-down communication.
• An individual advocating a DEMOCRATIC[ii] culture would be a poor choice to replace a “Type A” personality[iii] CEO in a fast-paced, growth-oriented organization.
• A LAIZZEZ-FAIRE[iv] management style might be more appropriate in a firm with high-achieving subsidiary managers who are used to having a great deal of discretion in “running their own business”.  A dictatorial style by an omnipotent boss with little or no input in decision-making by subordinates would definitely lead to internal conflict and turnover.
• The PATERNALISTIC style may be successful in a not-for-profit or other organization that balances the interests of its employees with those of the entity when making executive decisions.
• Many ventures evolve from an entrepreneurial culture to a STRUCTURED MANAGEMENT approach with the addition of professional managers as they achieve some success and grow.  “Management by walking around” is supplemented with “management through reporting”.  Standardized processes and formal, well-defined organization charts depicting clear lines of authority and reporting responsibilities plus written job descriptions become more important as the company matures and establishes its brand.  Under this concept, the “system” becomes more important than any one individual.  This style is favored in highly regulated industries where consistency is critical.
• A culture of followers may exist under several scenarios with dedicated loyalty to an individual, the mission, particular systems/processes or the overall organization.  In each of the following examples, employees enjoy a comfort zone based upon knowing what to expect as long as they “follow the rules”.  There is a place for everyone and everyone knows their place.  These cultures often breed a dependency on others to make the tough and non-standard decisions.  It would pose a challenge to change this culture to one of empowerment where the staff is expected to participate or take the lead in decision-making.

Followers may be found with:

a)    A dynamic charismatic leader who is the founder and whose vision drives the business.

b)    A mission-driven organization (e.g. a religious group or military unit) in which authority naturally vests with the established head.

c)    A mature corporation or government administration with a rigid, defined infrastructure and highly standardized protocols, policies and procedures where non-conformity is “frowned upon”.

• There is a fine line of distinction between “extraordinary customer service” and “inmates running the asylum” under the PARTICIPATORY management style.   An extreme example is under a democratic culture such as Town Hall meetings where “majority rule” determines critical decisions[v].  An industry example would be to allow the resident council to dictate operating protocols (e.g. menu selection) in a senior living community.  Soliciting input from all stakeholders (i.e. residents, family, staff, owners, etc.) is admirable, but management must ensure that it never abdicates its responsibility for ultimate decision-making.
• COACH/MENTORING is a unique hybrid management style that is particularly effective when the company is incubating a number of ventures, is comprised of a number of disparate parts or business lines, and/or has a group of highly-driven and competitive middle managers.  Like the head coach of a professional sports team, there is a strong leader who exercises ultimate power and authority over operations.  The objective, however, is to train and then empower the “players” to become self-sufficient and capable of making solid decisions in their day-to-day operational responsibilities.  This enables certain entrepreneurial aspects within a structured environment.
• The use of an ADAPTIVE management style is one of the more progressive approaches to shaping the business culture to meet the organization’s objectives.  This leader recognizes that the different styles are NOT MUTUALLY EXCLUSIVE and will employ various aspects of the continuum of styles as circumstances dictate.  Use of this style requires a self-assured manager who isn’t afraid to “think outside of the box” of their own personality and background.

BOTTOM LINE:  Each organization has certain founding principles (i.e. its raison d’être) that serve as the fundamental tenets for its business.  The culture built around these tenets should evolve over time as the company adapts to its marketplace and/or own growth[vi].  The “correct” management style for a specific organization at any given point in time will be impacted by the company’s:

• Type of ownership: public, private or not-for-profit
• Size and organizational structure
• Executive talent & ability to recruit new managers
• Strategic plans
• Mix of products / services
• Customer expectations

Unless he/she is specifically brought in as a “Catalyst for Change”[vii], a new leader should adapt to the situation and not attempt to mold the culture just to meet their personal management style.

Art Carr

615-414-5217

LinkedIn Profile http://www.linkedin.com/in/artcarr

Progressive Retirement Lifestyles http://progressiveretirement.wordpress.com/the-company/

Blog: Progressive Retirement Lifestyles http://progressiveretirement.wordpress.com/

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[i] Management style in which management “permits subordinates to take part in decision making”.   http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm

[ii] This is a permissive style of management that is characterized by “majority rule” determining corporate policies and actions.

[iii] Wikipedia states: “People with Type A personalities are often high-achieving “workaholics” who multi-task, push themselves with deadlines, and hate both delays and ambivalence.”  http://en.wikipedia.org/wiki/Type_A_and_Type_B_personality_theory

[iv] This is a highly decentralized style that is ideally characterized by an inspirational leader and loyalty to a shared vision throughout the organization.

[v] For a classic example of a Town Hall meeting view http://www.youtube.com/watch?v=m21URyBS–Y  from the movie “Hoosiers” where the whole town meets to determine “if the Coach stays or goes”.

[vi] In many cases, as indicated above, entrepreneurial cultures will become more structured as enterprises grow.  But, there have also been notable situations (e.g. Jack Welch, CEO at General Electric) where large companies have had success implementing entrepreneurial concepts to stimulate new products and other growth and/or quality initiatives in stable, mature companies.

[vii] Go to http://progressiveretirement.wordpress.com/ and subscribe to the blog to receive email notices of new articles about this series.

About Art Carr

Art Carr, CPA, is the Founder & President of Progressive Retirement Group, providing development, management & consulting services for the senior housing and care industry. In this role, he has created an evolutionary “Village” design of senior neighborhoods with integrated technology and the unique branded Progressive Retirement Lifestyles program of hospitality-based, resident-centered services to meet the differing needs of various senior clients. Previously, he was one of the top Regional Directors for industry leader Holiday Retirement.

For over 20 years, Mr. Carr has provided exceptional corporate-level leadership for all types and sizes of senior housing & care organizations – from fledgling enterprises to complex operations worth more than one billion dollars. His operations and financial expertise includes independent living, long term care (SNF), assisted living, home health, home medical equipment, rehab, and pharmacy.

In both officer and independent consulting roles, Mr. Carr has provided executive and board level leadership, corporate compliance, contract management, information technology, and reimbursement services for start-ups, growth businesses and industry leaders, as well as leading several turnarounds.   His achievements include success in entrepreneurial, venture capital backed and corporate environments, including operating a division with 250 locations and $1B in revenues (today’s dollars) for a public LTC company.

He may be contacted by phone at 615-414-5217 or email: art@progressiveretirement.com.

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