BEST PRACTICES

Good will leadership

Executive committees can locate the right managing partner for your practice. But the hunt takes time.

By Derek Preece

As established, small-group practices transition their businesses to younger physicians, usually resulting in larger clinics, the challenge of successful leadership emerges.

A primary reason — these younger physician-owners are expected to lead their practices into an uncertain future. While maintaining a thriving ophthalmology practice over decades and through multiple generations of physicians is challenging, practices that successfully manage changeovers from one generation of doctors to the next make sure good leadership is not just a happy accident. Good governance is borne out of the thoughtful preparation of a practice’s executive leadership committee.

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It is always best to identify and develop new physician leaders well before the owner-leader leaves that position. The best way to accomplish this is by creating an executive committee to work with the managing partner to learn about the business long before a transition takes place.

DON’T DEPEND ON ONE PERSON

Many practices depend on their leadership to come from a single, entrepreneurial managing partner. That partner normally holds that position for years — even if the practice had been sold to younger partners. When the managing partner steps down, it’s likely the new owners had been dependent on that long-time leader to look after their interests and to understand their business; they didn’t develop the skills necessary to assume a leadership role.

The learning time period could take a few years.

When identifying leaders, many practices use self- and 360-degree assessments to find individuals with the required interest and characteristics to succeed in a leadership role. The executive committee members participate in the practice’s decision-making processes over time so they can begin to understand resources, the types of issues leaders face, the right way to gather the right information for decision-making, and the best way to communicate with others so that decisions are effectively implemented.

Some practices take a different approach, putting in place a president/vice-president setup whereby the VP works with the president for several years before assuming the president’s role. The president has a limited term so that the practice does not become dependent on a single partner.

TEMPERAMENT MATTERS

Some physician-owners do not have the temperament, interest or ability to function well in a managing partner role, and it is best for the practice not to require them to try to take on those important responsibilities. We’ve told our clients for years that the most important trait to look for in a managing partner is emotional intelligence. While abilities such as surgical skills might give someone an initial level of respect, such respect will be quickly lost if the managing partner does not possess an even temperament and the reasoning skills critical to all executive-level success.

In our experience, the strongest managing partners are those who listen to and see all viewpoints. Furthermore, they have the ability to ask the right questions and analyze all data critical to making the best possible decisions. They can take that reasoning and use their communication skills to engage partners in the process and move implementation plans forward. Possessing strong emotional intelligence and communication skills are pivotal to earning and retaining the respect of the fellow physicians and the leadership team.

DOCTORS AREN’T THE ONLY LEADERS

Leadership from management personnel is also important in the long-term success of a practice. A seasoned, well-qualified practice administrator can help smooth the transition between generations of physicians and can provide training, context and corporate knowledge to new physician-leaders. As practice leadership evolves, however, it is important that the practice administrator and other management personnel not be put in “no-win” situations if there are conflicts between the outgoing and incoming physician leaders.

The practice administrator is largely responsible for recruiting, training and retaining other management and staff personnel — and the success of a practice is highly dependent on having productive, talented employees. Thus, attracting and keeping an outstanding practice administrator is a critical element related to the requirement of having excellent leadership in the practice (See “How to find a good practice administrator,” in the June 2016 issue of Ophthalmology Management, http://tinyurl.com/jg4nf6w).

TRANSITION SUCCESS

Many practices are now engaged in the transition between generations of physician leaders. Those that proactively ensure they have excellent physician and administrative leadership stand a much greater chance of meeting the oncoming challenges and sustaining their success into the future. OM

Derek Preece is a principal and executive consultant with BSM Consulting, an internationally recognized health care consulting firm headquartered in Incline Village, Nev. and Scottsdale, Ariz. For more information about the author, BSM Consulting, or content/resources discussed in this article, please visit www.BSMconsulting.com