Maximize NOI by Working Smarter, Not Harder Jill Haselman, CEO Senior Living NOI Earl Parker, COO Commonwealth Assisted Living
Objectives: In one hour, you will… Engage in a groundbreaking case study, encompassing a unique industry partnership. ► Learn how to achieve NOI from a different operating perspective. ► See evidence of NOI drivers through actual company metrics. ► Understand why our industry paradigms are holding back exceptional bottom line results. ► Take away specific ideas, concepts, and techniques for reinventing the way we operate. ►
Here’s the Story ► ► ►
Rapidly Growing Company (12 Years Old) New COO position created in Aug 2013 Need for an overall plan to scale the company for growth – Identify and respond to barriers to achieve occupancy and NOI targets. – Build solid Regional and Home Office Support Team that was scalable for growth. – Improve Resident and Staff Satisfaction.
► ►
Nov 2013 reached out to SLNOI for partnership support and strategy Set out on a diagnostic process to establish “current state” of company = opportunities & challenges
Big Picture Process “Jill and her team helped us to make quick decisions to get us on the right path. Six months later the results speak for themselves."
Commitment
Strategic Change
-Richard Brewer, CEO Partnership Industry Experience Science and Research
The Foundation: Academic Theory Systems Theory Organizations are like living organisms, made up of sub-systems. Organizational success relies on interdependence. Research dictates that employees are arguably the most vital subsystem in any organization.
Contingency theory (an integral part of systems theory)
The ideal structure and form of any “system” depends on the DYNAMICS of its internal subsystems. Organization structure (Org Charts) can have far-reaching effects on the company’s far-reaching relationships with their employees.
Get right to the Punch Line‌
Industry Average NOI
< 9 Mos. 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014
NOI Per Employee
51% Increase
Turnover in the first 90 Days
34% $194K Savings (Quarterly)
13%
Workerâ&#x20AC;&#x2122;s Comp Costs
1.23 Mod Rate
.84
We See It Differentlyâ&#x20AC;Ś
NOI and Occupancy are OUTCOMES of the organizational system.
What Do We Sell?
Rethink the Paradigm
People Product Process
FROM
TO
Biggest Expense
# 1 Asset
Building & Food
People
Department Silos
Ecosystem
Repeat After Me……..
The Person Closest to the People, Product, or Process is in the BEST Position to Affect Change.
“Flip The Org. Chart”TM Residents, Family Members, Prospects Front Line Associates Executive Directors/ Dept. Heads
Regional Teams Home Office
C-Suite
Our People ARE Our ProductTM
Residents, Family Members, Prospects Front Line Associates Executive Directors/ Dept. Heads Regional Teams
Home Office
C-Suite
It starts at the top. Bottom.
Organizations Behave Like Their LeadersTM
10 Years Ago
… IF AUTHENTIC. ALL Actions Flow Through Them.
“Culture is what people do when nobody is looking.”
The Commonwealth Story â&#x20AC;Ś a partnership of success
Before this happened…
1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014
“ When We Were Small, People Knew We Cared” Richard Brewer, CEO
SLNOI Diagnostic •1
Financials
•2
Sales Intel
•3
Process & Policy
•4
Norms (inherent standards)
Quantitative Methodology
SLNOI Diagnostic 30 Home Office
345 People
Were
7 Days
Heard 180
Staff
27 ED’s & AIT’s
108 Dept Heads
Qualitative Methodology
What Our People Wanted Us To Know Weighted Impact Analysis
Dining 4%
Facility Utilization 7%
I.T. Systems and Service 3%
Sales 7%
Culture 35%
Culture HR Res Care and Risk
Res Care and Risk 18%
Facility Utilization Sales HR 26%
Dining I.T. Systems and Service
It All Starts With Core Values
It’s all about the people ► ► ►
Took a good hard look at the quality of our people. Turnover can be a good thing (initially) Evaluated where we were with human capital – Gaps – Bench Strength – Those who aligned with our values (and those who didn’t)
►
Made a critical decision to hire for fit w/science
►
Redesigned the way we developed people. Learning. Not “Training”. Commitment to accountability
►
“If you’re not using this tool, you must not want to work here”.
Organizational Effectiveness
T M
A proprietary process for superior operating processes and results.
Translate Individual Insights into a Mosaic of Analysis and Execution
Step #1
Reality Check
“The biggest employer in town closed”
“We don’t pay enough!!”
Step #2
Step #3
Step #4
Jill and her team “Taught us to fish”….
“Flip The Org. Chart”TM Residents, Family Members, Prospects Front Line Associates Executive Directors/ Dept. Heads
Regional Teams Home Office
C-Suite
Our People ARE Our ProductTM
Occupancy Correlation
Thank You!