Community Health Center Management Principles for Boards and Senior Managers - Principle 16 - Managing for Results

Community Health Center Management Principles for Boards and Senior Managers - Principle 16 - Managing for Results

This is a continuing series for effective Community Health Center Governing Boards and Senior Management.

Today we address:

Principle 16 - Managing for Results
· Classification of results areas:
1. Today’s breadwinners
2. Tomorrow’s breadwinners
3. Productive specialties
4. Development of products or services
5. Failures
6. Yesterday’s breadwinners
7. Unnecessary specialties
8. Unjustified specialties
9. Investments in managerial ego
10. Cinderellas (sleepers)

· Rules to apply to results areas:
1. Any significant deviation of performance from expectations is likely to signal a change in classification.
2. Expectations must be written down ahead of time
3. There is a difference to every product (market, end-use, distributive channel). Analysis of the cost of further increments of growth shows where a product stands in the lifecycle, and what its life expectancy is.

· Satisfaction:
1. One doesn’t sell a product or service, one sells satisfaction (solutions).
2. One doesn’t buy a thing; one buys the satisfaction (the solution) and utility derived therefrom.

· Five keys to managing for results:
1. Neither results nor resources exist inside the business; business converts outside resources into outside results.
2. Results are obtained by exploiting opportunities - not by solving them.
3. To produce results, resources must be allocated to opportunities rather than to problems.
4. Economic results are earned by leadership, not by mere competence.
5. Any leadership position is transitory and likely to be short lived.


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