Introduction
Mergers are challenging processes in which organizations with different cultures, structures, and values have to become a single entity. The success of this process largely depends on the actions of leaders – specifically, managers and executives who remain in their positions within the merged organization. In the case of two previously competing hospitals, the insights of these professionals should be used to build a strong, stable organization. The case demonstrates that the leadership took steps toward defining the hospital’s structure and that the leaders have paid attention to the entity’s new values and goals. Nevertheless, the merger’s analysis must also focus on leadership activities, such as communication, preparation, and inspiration, to reach positive results.
New Governance Structure for the New Organization
The new governance structure of the Portsmith Regional Medical Center is a hospital board. It includes 10 members from Banner Regional Medical Center (BRMC) and 5 from Porter Regional Medical Center (PRMC). All executives previously occupied similar positions in their respective organizations.
The new hospital board appears to involve staff and middle management to some extent, listening to their input and collecting feedback through regular meetings. Additionally, it appears that the staff participates in the voting process, thus limiting the board’s power. Its members are responsible for creating the vision and mission statements and developing strategies for merger success and goal achievement, while some other decisions involve all workers. Thus, one may argue that the governance structure is not fully centralized, as employees have some power to promote professionals to higher positions and to set work standards (Longest & Darr, 2014). As a result, the board is responsible for long-term goals and decisions, while practical choices are made in collaboration with staff.
This model is appropriate for the merger because it involves employees. Delegating some decisions to employees is vital for their engagement, which is essential in complex processes that produce a high risk of stress and dissatisfaction (Longest & Darr, 2014). Mergers can be intimidating for workers, as they involve numerous unknowns and potential career risks. Therefore, giving them a voice can help staff members to overcome the challenges and understand the process of uniting two organizations. Nevertheless, this governance structure also implies that the board has limited abilities to influence the merger, which may lead to some adverse outcomes if employees are hostile to the changes.
Significant Leadership Activities After the Merger
To begin merging the cultures of the two hospitals, leadership must prepare the organizations for change before initiating the process, communicate with all staff levels, and clearly define the goals of the merged entity. First, leaders need to prepare employees and the hospital for upcoming alterations. Here, some initial steps should focus on explaining the reasons for the merger and showing the potential benefits of this decision (Brown, 2020). In turn, informed employees can support the union and contribute to its success by participating in group activities and cultural development.
The second important activity for leaders is to communicate with workers and managers during the merger. The executive board’s role in the hospital is to define the new mission statement, goals, and strategies to achieve the hospital’s objectives. This information must be accessible to all workers in the new organization, as it directly impacts their responsibilities and roles. Uninformed staff members who are unprepared for changes and unaware of the new mission, values, and aims cannot participate effectively in the merger process. As a result, they may feel that their input does not matter and either leave or oppose the changes.
The third activity for leaders also focuses on clarity: executives must define the goals set for the organization. In the considered case, some of the current objectives are to create a shared culture, retain employees, train staff to acquire the desired skills and qualifications, and reduce costs. While some of these goals are transparent, such as increasing the RN-to-LPN ratio, others are less clear. Thus, the leadership must establish measurable objectives for the hospital to reach.
Highest Priority for the Managers in the Newly Configured Organization
Once the organization is configured, managers will need to monitor the merger process and evaluate its success. The new hospital may have a new board, vision, mission, benefit packages, and other necessary features. However, it does not mean that the operations will run smoothly after the merger is officially completed.
Thus, managers must ensure that the new culture is implemented and followed by all workers (Brown, 2020). The issue of compliance is among the most vital to consider – leaders must analyze all elements of the newly integrated processes and determine which are effective and which need further improvement (Brown, 2020). Continuous evaluation is essential for future growth and achieving new goals, making post-merger analysis the top priority for managers.
The Most Important Leadership Competencies During the Merger
Leaders must possess a range of skills to manage an organization effectively; however, during mergers, they must excel in strategic thinking, conflict resolution, and effective communication to ensure the organization’s success. The first competency relates to the core of merging – the need to develop a plan for combining two entities into a single entity. Here, one must create a specific strategy that acknowledges the strengths and weaknesses of each organization and uses them to the final company’s advantage. Strategic thinking is essential for leaders, as it enables them to design long-term goals and envision the final organizational structure before the merger begins.
The remaining two competencies are necessary for working with staff and other managers. On the one hand, conflict resolution skills can help a leader approach any situation from a knowledgeable perspective and de-escalate tensions that may arise due to changes (Longest & Darr, 2014). For example, middle managers responsible for units that will become part of a new structure can communicate with their subordinates in a way that prevents resistance or reduces negative responses and hostility. On the other hand, communication competencies are essential for leaders to effectively share their vision with employees and keep them informed about the process. Moreover, this skill is an integral element of teamwork, which is also necessary for a merger to succeed.
Conclusion
In conclusion, the merger of the two hospitals in the selected scenario presents a complex venture with issues related to staff retention and goal setting. During such processes, leaders must prepare their subordinates for change, communicate effectively with them, and establish specific goals. Managers should focus on evaluating the merger once the new organization is created to ensure that it functions as expected. The process of uniting two entities does not stop once they are combined officially, as some time is necessary for the new culture to develop and strengthen. The competencies essential for effective leadership in a successful merger include communication, conflict resolution, and strategic thinking.
References
Brown, B. (Host). (2020). Eric Mosley: On Making Work Human. In Dare to lead. Brené Brown Education and Research Group, LLC.
Longest Jr, B. B., & Darr, K. J. (2014). Managing health services organizations and systems (6th ed.). Health Professions Press, Inc.