Maximize Your NOI By Working Smarter, Not Harder
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Transcript of Maximize Your NOI By Working Smarter, Not Harder
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
Science and Research
Industry Experience
Partnership
Strategic Change
Commitment“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."
-Richard Brewer, CEO
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.
1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014
Get right to the Punch Line…
< 9 Mos.
Industry Average NOI
NOI Per Employee
51% Increase
Turnover in the first 90 Days
34%
13%
$194K Savings (Quarterly)
Worker’s Comp Costs
1.23
.84
Mod Rate
We See It Differently…
NOI and Occupancy are OUTCOMES of the organizational system.
What Do We Sell?
Rethink the Paradigm
People
Process
Biggest Expense
Product Building & Food
Department Silos
FROM
Ecosystem
TO
People
# 1 Asset
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
C-Suite
Home Office
Regional Teams
Executive Directors/ Dept. Heads
Front Line Associates
Our People ARE Our ProductTM
It starts at the top. Bottom.
Residents, Family Members, Prospects
C-Suite
Home Office
Regional Teams
Executive Directors/ Dept. Heads
Front Line Associates
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
… a partnership of success
Before this happened…
“ When We Were Small, People Knew We Cared” Richard Brewer, CEO
1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014
SLNOI Diagnostic
Quantitative Methodology
• Financials1
• Sales Intel2
• Process & Policy3
• Norms (inherent standards)4
SLNOI Diagnostic
Qualitative Methodology
7 Days
30 Home Office
27 ED’s & AIT’s
108 Dept
Heads
180
Staff
345People
Were
Heard
What Our People Wanted Us To Know
Culture35%
HR26%
Res Care and Risk18%
Facility Utilization7%
Sales7%
Dining4%
I.T. Systems and Service3%
Weighted Impact Analysis
Culture
HR
Res Care and Risk
Facility Utilization
Sales
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
TM
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
C-Suite
Home Office
Regional Teams
Executive Directors/ Dept. Heads
Front Line Associates
Our People ARE Our ProductTM
Occupancy Correlation
Thank You!