SPRING 2010
FASCINATING PEOPLE IN HEALTHCARE
DENNY SANFORD Greetings, We at QLK are continually fascinated by the people we meet in the healthcare world. There is never a shortage of amazing stories. Denny Sanford truly is one of the most fascinating leaders we’ve come across. Already a legend in the business world, his gift to his local community’s health system made him the country’s largest single benefactor to a health organization. Despite the economy, his commitment to improving healthcare has never wavered. We know thousands of hospital trustees and community leaders, but there is only one Denny Sanford. The beginning of 2010 finds executive searches for hospital CEO’s and executive leadership accelerating at a record pace. The dam has truly broken! QLK is proud to be working with the most prestigious organizations as they redefine their leadership teams. As we travel across the country, it’s been hard to find any place warm or dry. But spring is almost here - it’s a season that always seems to bring hope and new beginnings. Especially if you have a Denny Sanford on your side. All the best, Roger and Mike
For Denny Sanford, it was a chance to make a real difference. So when Kelby Krabbenhoft, the CEO of the then Sioux Valley Hospitals & Health System, asked him for a record-setting $400 million donation, he got out his checkbook. Well, first he joked about the thin air in Colorado causing him not to think clearly, but then he turned serious. “I’ve lived in Sioux Valley for 24 years now and I’ve gotten to know the organization,” Sanford said. “I believe I picked a winner.”
Sanford had been drawn to health care, in particular children’s health, ever since losing his parents at a very young age - his mom died when he was four years old and his father died when he was 21 years old. “Children don’t have a voice and I want them to have one,” Sanford said. His goal? To cure Type 1 Diabetes in 10 years. It doesn’t hurt to have Michelle Obama championing a similar cause - childhood obesity.
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Sanford was born in St. Paul, Minnesota at the height of the Great Depression. He started working at the age of eight at his father’s clothing distribution company. In 1966, Sanford started Contech, a specialty chemical company that was sold in 1982 and followed up with a highly successful career in private equity investments. In 1986, Mr. Sanford purchased United National Bank, which was renamed First Premier Bank. Under his leadership, First Premier has grown its assets to almost $1 billion. Another business, Premier Bankcard Inc., which Sanford started, has become a national leader in the credit card industry. In 2001, Sanford got serious about giving back and formed the Sanford Foundation. So you could say Kelby Krabbenhoft came around at exactly the right time. Sanford and Krabbenhoft met when a mutual advisor introduced the two in the fall of 2003. A year later Krabbenhoft asked for Sanford’s help in building a new pediatric hospital. Sanford pledged $16 million and Krabbenhoft matched that figure with other contributions. Construction on the hospital began in 2007. It was during a meeting where Krabbenhoft was updating Sanford on the hospital’s construction that he brought up the $400 million donation.
On February 3, 2007 Krabbenhoft was pleased to announce that their health system was the recipient of a $400 million gift, the largest gift ever made to a single healthcare organization in U.S. The system has been known as Sanford Health ever since. “Kelby Krabbenhoft and I have a wonderful history,” Sanford said. “I looked at him, Dave Link (senior executive vice president of Sanford Health & MeritCare) and the whole team and I thought, 'they can make this happen.' I went with a team of winners and I never regretted it for a second.” So far Sanford’s gift has:
• Opened the Sanford Children’s Hospital. • Consolidated the MeritCare Health
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System with the Sanford System, creating Sanford Health, a 20,000 employee, $2.3 billion Integrated Health System, including the Sanford Health Insurance Plan and 800 plus physicians in the Sanford Clinic. The system is cited as the nation’s largest geographic healthcare system with over 130,000 contiguous square miles. Recruited and retained an all star team, led by Dr. Paul Burn of Switzerland and the Juvenile Diabetes Research Foundation, to find the cure for Type 1 Diabetes.
“Children don’t have a voice and I want them to have one.”
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• Opened a pediatric clinic in Duncan, Oklahoma.
• Paved the way for signed agreements to open clinics in Oceanside, California/ Dublin, Ireland/ Belize City, Belize/ Klamath Falls, Oregon.
The projected local economic impact of the Sanford Initiatives is $1.1 billion and 9,000 additional jobs over the next 10 years. Sanford has also given $15 million to the Mayo Foundation, in Rochester, Minnesota, $10 million to create a new pediatric outpatient center at the Mayo Clinic and the remaining $5 million to support joint research by Mayo Clinic and Sanford Children’s Hospital in Sioux Falls. In December, Business Week named Sanford the 15th most generous philanthropist in the U.S. for donating $706 million from 2004 to 2008. Denny Sanford and Kelby Krabbenhoft are living proof that the extraordinary generosity of a benefactor coupled with visionary executive leadership is the perfect partnership to insure the future of quality healthcare.
Several years ago, walked into Denny home, asked him and wasn’t the
Kelby Krabbenhoft Sanford’s Colorado for $400 million least bit timid.
“I’ve been to a million meetings where I’ve felt anxious,” Krabbenhoft said. “But I wasn’t nervous before that meeting. I trust him as much as he trusts me. I just told him, you have a chance to do something historic.” Sanford had already donated $16 million to what was then known as Sioux Valley Hospitals & Health Systems to build a children’s hospital. Krabbenhoft was able to raise another $16 million to match Sanford’s original contribution.
“First, have a compelling story that will move people. Second, keep it simple,” Krabbenhoft said. “Mr. Sanford didn’t inherit his money, he earned it himself,” Krabbenhoft said. “He’s a tough-minded individual and is results orientated.” And here’s a final bit of advice from Mr. Krabbenhoft: “Don’t forget to say thank you – say it often and in ways that reflect the ongoing life and meaning of the gift.”
But to secure the future of the health system, Krabbenhoft knew he needed much more. And he had one chance to get it. Krabbenhoft came armed with a rendering of the proposed hospital that looked like a castle. Sanford thought this was unique for a hospital design. Then Krabbenhoft suggested the $400 million donation and said he wanted to rename Sioux Valley “Sanford Heath.”
KELBY KRABBENHOFT “Don’t forget to say thank you – say it often and in ways that reflect the ongoing life and meaning of the gift.”
The system has earmarked the money for four major projects: setting up five pediatric clinics across the country; expanding its five research institutes and creating a new pediatric research institute; creating a commission of experts to identify a promising research area for a pressing healthcare challenge and creating a world-class “campus of the future.” Krabbenhoft and Sanford had the same attorney, which is how the two men met. “I remember my lawyer said you might want to give him (Sanford) a call,” said Krabbenhoft. “We like many of the same things and we get along. I was pretty lucky.” Maybe. But luck wasn’t all Krabbenhoft had. Before joining Sanford Health, he was the CEO of Freeman Health Systems in Joplin, Missouri, and before that he was the system executive vice president for the Sisters of St. Mary of the Presentation Health Corporation in Fargo, North Dakota. Krabbenhoft has some tips for his fellow CEOs who want to build the type of relationship he has with Sanford. 3
INVITATIONAL SESSION ON WOMEN EXECUTIVE ISSUES QLK is pleased to have sponsored the Invitational Session on Women Executive Issues on January 15 in Oak Brook, Illinois at the Joint Commission offices. The event was attended by 13 highly respected female executives including representatives from ACHE, AHA, and JCAHO. There was a variety of topics discussed focused on increasing the number of women and nursing leaders in C-level positions. All participants shared their own personal journeys and experiences as they have moved into C-suite roles. Jolene Tornabeni, managing partner, Quick Leonard Kieffer founded the group along with Kathy McDonagh, vice president, executive relations, Hospira, Tim Porter-O’Grady, senior partner, Tim Porter-O’Grady Associates, and Ninfa Saunders, executive vice president, Virtua Health. Given the event’s success, plans for another session are in progress. The committee has also developed an aggressive research, education, and publishing agenda aimed at furthering the dialogue and advancement of nurses and women at the C-suite. The work to
date and results of this endeavor will appear in an issue of Nurse Leader this spring or summer. According to Tornabeni, the session was set up as a result of conversations about why more women don't ascend to the highest C-suite positions. "As I have transitioned into executive recruiting one of my hopes has been that I would be able to both identify and present highly accomplished females in searches along with their male counterparts," she said. "I have found that as I began to talk to women, many of them don't look at their career's trajectory or plan for how they will ascend. Instead, what I have found is women tend to get strongly attached to the job they are in, focused on all that needs to be done, and invest all their time and energy to doing well at that job and 'forget' to look outward and strategize about how they will move onward and upward."
some very passionate and dedicated executive leaders in healthcare,” McDonagh said. “While there has been some progress for women in the executive suite, there is much more work to do and this influential group of leaders will certainly make an impact on this important issue.” Tornabeni agreed. “The dialogue we shared and the camaraderie felt in the room is hard to put into words or a succinct reaction,” Tornabeni said. “There was a spirit within the group that was hard to explain and as each talked about her accomplishments, struggles, passion, and courage of perseverance I couldn't help but feel a part of something bigger than myself and a sense of pride of who we were collectively as well as individually.” For more information about the next Invitational Session on Women Executive Issues, please contact Jolene at jtornabeni@ qlksearch.com.
Kathryn McDonagh said the session was just the beginning. “This was a very powerful session with
There is no place like Chicago in March . . . On March 23rd we had the opportunity to spend time with our friends who were attending the ACHE Conference at a cocktail party at the John Hancock Building here in Chicago. If you were not able to join us this year we hope that you will plan on attending our next gathering.
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BOOK REVIEW “HOW is a radically different and compelling approach to competing in business today. We’re all aware of the implications of operating in a transparent, wired, global marketplace. Dov Seidman crystallizes how we need to think and act to win in this new world.” — J E F F K I N DL E R C h a i r m a n a n d C E O, P f i z e r I n c .
• Improving
Connections in a Hyperconnected World – Communications technology has joined us together across time, distance, culture, and country faster than we have developed frameworks to understand each other. Our ability to thrive lies in how we reach out and build strong connections;
• The Opportunity to Outbehave –
W h y H OW We D o A n y t h i n g Means Everything . . . in Business(and in Life)
When you make stronger connections and collaborate more intensely with your co-workers, you win; if you keep promises 99% of the time and your competitor keeps promises 8 out of 10 times, you gain critical advantage in the marketplace; when you deliver a more meaningful customer experience, you engender a loyalty that brings them back again and again;
• Active Transparency – Legions of
Success today requires new skills and new habits, a more discerning lens so we can perceive core issues, and a deeper consciousness for connecting more fully to employees, associates, and potential clients, according to Dov Seidman. He points out that it’s no longer what you do, or even who you know, but how you relate to others that opens previously closed doors to opportunity and enrichment, as well as a fulfilling life and the realization of our goals. In our hyperconnected, hyper-transparent world, how we do what we do becomes our unique competitive advantage and ultimate differentiator, whether we are in media, manufacturing, service, retail, or even not-for-profit work. Seidman explains why the old “rules” of doing business (top-down command, control, hoarding information, and generating spin) must give way to values-based thinking and behavior. In “How” Seidman shows why the old “can do” model is outmoded, out-of-date and ineffective, and explains how valuesdriven “should do” behavior energizes individuals, builds a powerful culture, and supports innovations, improved operations and sustainable success. In “How,” Seidman discusses:
bloggers across the country can sift through thousands of pages of corporate documents overnight; because there is more to look at, we look more, and judge people and companies in different ways; to thrive, individuals must turn transparency to their advantage;
• Your Culture can’t be Copied
– Culture is the unique character of any organization, its lifeblood, the sum total of all it hows. Though your whats (your products) can be reverse-engineered in no time at all, no one can copy your hows. Strong cultures of connection can be a key source of differentiation and provide a unique competitive advantage;
• From WHAT We Do to HOW We
Do It – Human Conduct – how we do what we do – is the next frontier of powerful differentiation. The people and companies that will rise to the top today and stay on top tomorrow, who will be rewarded, promoted and celebrated, are those that get their hows right;
• Dancing with Rules – Rules don’t
govern human progress, they govern human past. There is little in rules that inspires; by definition, we comply with them. People who feel over-regulated feel distrusted. Rulesbased thinking holds us back. Values
free us to do more than “necessary” while simultaneously preventing us from doing less than we should;
• Self-Governance
– A leading company needs to be a company of leaders; self-governance shifts the reins of culture from the external (rules) to the internal (values);
• The Certainty Gap – This gap between
our ideal vision of stability and security and the uncertain realities of life exerts a profound influence on our ability to succeed. The Gap is filled by trust; trust gives us confidence;
• The Currency Value of Trust –
Trust is the powerful dynamic that releases trapped potential, fills the interpersonal synapses between us, and allows us to function in times of uncertainty;
• The Leadership Framework – Self-
governing individuals approach everything they do from a leadership perspective; you can write an e-mail as a leader, attend a meeting as a leader, or build a report as a leader. A leadership mentality creates the strong interpersonal synapses so crucial to thriving in a hyperconnected world;
• The Journey to Significance – To
pursue success is to pursue the shortterm and pragmatic. Success can’t be pursued directly; it is a result. Longterm, sustained success flows from a journey of significance.
Working powerfully with others for personal and organizational change begins with leading yourself—with passion, purpose, and integrity to plan, inspire, pursue significance, and confront ambiguity and complexity. Opening new avenues of thought and illuminating the way to play to our strengths, “How” defines an emerging culture shift, presents a new framework through which to understand it, and details how we all can begin our own journey toward lasting, quantifiable success. HOW: Why How We Do Anything Means Everything…in Business (and in Life) By Dov Seidman John Wiley & Sons;June 2007;$27.95 ISBN: 978-0-471-75122-9 5
FEATURED PLACEMENTS JILL FULLER has been named the CEO of Prairie Lakes Healthcare System (PLHS) in Watertown, South Dakota. PLHS is a leading regional provider for northeastern South Dakota and has been a Top 100 Hospital for two consecutive years, and a HealthGrades 5-Star recipient for joint replacement surgery. PLHS is also one of only 13 hospitals nationwide participating in a Robert Wood Johnson project to improve inpatient processes of care in U.S. hospitals. Fuller joined PLHS in 2000 as chief nursing officer. In this position, she had the responsibility of leading patient care services and was instrumental in the establishment of PLHS Interventional Cardiology program in 2007. Known as a strategic and innovative leader driven to improve quality and business processes, Fuller has a track record of specialty service development, improved clinical outcomes, and a proven ability to achieve operating results without costly initiatives or programs. Fuller has been involved in healthcare administration for 18 years and was the chief operating officer for UniMed Medical Center in Minot, North Dakota. In 1999, she served as vice president patient care services at Community Memorial Hospital, Winona, Minnesota. Fuller earned her Bachelor of Arts from St. Olaf College. She received her Bachelor of Science from Minot State University and her Masters of Science from Brigham Young University. Fuller received her PhD from the University of Utah.
Hackensack University Medical Center (HUMC) Board of Governors named ROBERT C. GARRETT as president and chief executive officer. Mr. Garrett served as acting president and chief executive officer during a five-month nationwide search. He joined HUMC in 1981 and was named executive vice president and chief operating officer in 1986. Mr. Garrett oversees the daily operations for the 775-bed, not-for-profit, tertiary care, and teaching and research institution with nearly 8,000 employees and 1,500 physicians. Based on inpatient admissions, HUMC is the fourth largest hospital in the nation and is ranked as one of the top 20 children’s hospitals. HUMC has been recognized by HealthGrades as one of America’s 50 Best Hospitals™ in 2007, 2008, 2009, and 2010 which places it in the top one percent of all hospitals in the nation for quality. Mr. Garrett has begun work on HUMC’s new Heart & Vascular Hospital, a facility dedicated to patients with cardiac and vascular disease focusing on state-of-the-art time-saving and lifesaving care. Other recent accomplishments include an oncology affiliation with Saint Claire’s Hospital in Denville, New Jersey which has strengthened the John Theurer Cancer Center’s tertiary referrals and the establishment of the “Touchdown Fund for Kids, Cardiac, and Cancer,” a unique partnership with the New York Giants to raise funds for medical center programs. Mr. Garrett is past secretary/treasurer of the American Diabetes Association and currently serves as chairman of its board Development Committee. As of January 2010, he serves as chairman of the New Jersey Council of Teaching Hospitals’ (NJCTH) Board of Trustees. Mr. Garrett received his Master of Health Administration from Washington University in Saint Louis and his Bachelor’s degree from Binghamton University in New York.
Providence Health & Services has announced that ALAN OLIVE has accepted the position of chief executive for Providence’s Yamhill Service Area, which includes Providence Newberg Medical Center. For the past seven years Olive has served as chief executive officer for Renown South Meadows Medical Center in Reno, Nevada. Olive joins Providence as planning continues for a hospital expansion and an additional medical office building in the Newberg area. “I look forward to getting to know the communities we serve, he said. “I’m very impressed with the wonderful work and outstanding culture of Providence Newberg.” A Reno native, Olive attended Brigham Young University, where he earned a bachelor’s degree in sociology. He also holds a master’s degree in health care administration from Loma Linda University.
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