Forms of leadership health executives should consider adopting in a new wave of healthcare.
Few industries are currently experiencing the same level of transformational change within healthcare. From regulatory uncertainty, rapid consolidation and technological disruption to the heightened demands for both greater financial transparency and patient data security and privacy, massive change is coming from all directions.
These changing dynamics may be a source of headaches for healthcare companies and those who lead them, but they are seen by private equity (PE) investors as opportunity, as evidenced by a record $63 billion investment made in healthcare in 2018.
Amid growing economic instability and widespread opportunities for continued consolidation, PE investors were particularly attracted to the strong fundamentals within the healthcare sector, according to a recent report by Bain & Company.
Investment dollars alone will not accelerate growth and herald success in today’s healthcare environment. That will depend on the ability of leadership and management teams to evolve, expand their thinking and engage in a paradigm shift that both meets the demands of growth-hungry PE investors and responds to the uncertain and ever-changing market landscape. Physicians-turned-business leaders running rapidly growing healthcare businesses accustomed to focusing predominantly on patient care must consider multiple stakeholders, while healthcare business leaders need to evolve from their old playbooks for success.
Related: The Future of Healthcare Leadership
With this in mind, these are the leadership attributes that matter more than ever in today’s frenzied healthcare environment:
By themselves, each of these attributes is not revolutionary. But together, they represent a more targeted model for leadership in the modern healthcare industry. For the past 20 years, Silicon Valley played a role in driving innovation for leadership and organization effectiveness across the broader technology landscape. The healthcare industry is undergoing a similar evolution. Growth-minded investors and management teams must assess leaders against these key attributes to ensure they have the right people in place to capitalize on the wealth of opportunity.
Todd Fryling is a Partner at Summit Leadership Partners, a leadership and organization development consulting firm advising boards, investors, CEOs, and senior leaders on delivering peak organization performance.