Maximize Your NOI By Working Smarter, Not Harder

55
Maximize NOI by Working Smarter, Not Harder Jill Haselman, CEO Senior Living NOI Earl Parker, COO Commonwealth Assisted Living

description

Increasing a company’s net operating impact is imperative in today’s business climate. Attendees will have their current paradigms challenged and recalibrated in an hour-long journey that will provide tools, techniques, processes, and the secret sauce to exponentially increasing NOI growth and staving off competition. Attendees will engage in a case study delving into how an ALFA member grew NOI in focus communities by more than 75% in just six months, contributing to company-wide NOI growth greater than 33%. Jack Burt Principal, Senior Living Net Operating Impact; Jill Turley Haselman CEO, Senior Living Net Operating Impact; Earl Parker Chief Operating Officer, Commonwealth Assisted Living; Jeffery Ritz President, Senior Living Net Operating Impact

Transcript of Maximize Your NOI By Working Smarter, Not Harder

Page 1: 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

Page 2: Maximize Your NOI By Working Smarter, Not Harder

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.

Page 3: Maximize Your NOI By Working Smarter, Not Harder

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

Page 4: Maximize Your NOI By Working Smarter, Not Harder

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

Page 5: Maximize Your NOI By Working Smarter, Not Harder
Page 6: Maximize Your NOI By Working Smarter, Not Harder

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.

Page 7: Maximize Your NOI By Working Smarter, Not Harder

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

Page 8: Maximize Your NOI By Working Smarter, Not Harder

NOI Per Employee

51% Increase

Page 9: Maximize Your NOI By Working Smarter, Not Harder

Turnover in the first 90 Days

34%

13%

$194K Savings (Quarterly)

Page 10: Maximize Your NOI By Working Smarter, Not Harder

Worker’s Comp Costs

1.23

.84

Mod Rate

Page 11: Maximize Your NOI By Working Smarter, Not Harder
Page 12: Maximize Your NOI By Working Smarter, Not Harder
Page 13: Maximize Your NOI By Working Smarter, Not Harder

We See It Differently…

NOI and Occupancy are OUTCOMES of the organizational system.

Page 14: Maximize Your NOI By Working Smarter, Not Harder

What Do We Sell?

Page 15: Maximize Your NOI By Working Smarter, Not Harder

Rethink the Paradigm

People

Process

Biggest Expense

Product Building & Food

Department Silos

FROM

Ecosystem

TO

People

# 1 Asset

Page 16: Maximize Your NOI By Working Smarter, Not Harder

Repeat After Me……..

The Person Closest to the People, Product, or Process is in the BEST Position to Affect Change.

Page 17: Maximize Your NOI By Working Smarter, Not Harder

“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

Page 18: Maximize Your NOI By Working Smarter, Not Harder

It starts at the top. Bottom.

Residents, Family Members, Prospects

C-Suite

Home Office

Regional Teams

Executive Directors/ Dept. Heads

Front Line Associates

Page 19: Maximize Your NOI By Working Smarter, Not Harder

Organizations Behave Like Their LeadersTM

Page 20: Maximize Your NOI By Working Smarter, Not Harder

10 Years Ago

Page 21: Maximize Your NOI By Working Smarter, Not Harder

… IF AUTHENTIC.ALL Actions Flow Through Them.

Page 22: Maximize Your NOI By Working Smarter, Not Harder
Page 23: Maximize Your NOI By Working Smarter, Not Harder

“Culture is what people do when

nobody is looking.”

Page 24: Maximize Your NOI By Working Smarter, Not Harder

The Commonwealth Story

… a partnership of success

Page 25: Maximize Your NOI By Working Smarter, Not Harder

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

Page 26: Maximize Your NOI By Working Smarter, Not Harder

SLNOI Diagnostic

Quantitative Methodology

• Financials1

• Sales Intel2

• Process & Policy3

• Norms (inherent standards)4

Page 27: Maximize Your NOI By Working Smarter, Not Harder

SLNOI Diagnostic

Qualitative Methodology

7 Days

30 Home Office

27 ED’s & AIT’s

108 Dept

Heads

180

Staff

345People

Were

Heard

Page 28: Maximize Your NOI By Working Smarter, Not Harder

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

Page 29: Maximize Your NOI By Working Smarter, Not Harder

It All Starts With Core Values

Page 30: Maximize Your NOI By Working Smarter, Not Harder
Page 31: Maximize Your NOI By Working Smarter, Not Harder

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

Page 32: Maximize Your NOI By Working Smarter, Not Harder
Page 33: Maximize Your NOI By Working Smarter, Not Harder
Page 34: Maximize Your NOI By Working Smarter, Not Harder

“If you’re not using this tool, you must not want to work here”.

Page 35: Maximize Your NOI By Working Smarter, Not Harder

Organizational Effectiveness

Page 36: Maximize Your NOI By Working Smarter, Not Harder
Page 37: Maximize Your NOI By Working Smarter, Not Harder

TM

A proprietary process for superior operating processes and results.

Page 38: Maximize Your NOI By Working Smarter, Not Harder

Translate Individual Insights into a Mosaic of Analysis and Execution

Page 39: Maximize Your NOI By Working Smarter, Not Harder

Step #1

Page 40: Maximize Your NOI By Working Smarter, Not Harder

Reality

Check

Page 41: Maximize Your NOI By Working Smarter, Not Harder

“The biggest employer in town closed”

Page 42: Maximize Your NOI By Working Smarter, Not Harder

“We don’t pay enough!!”

Page 43: Maximize Your NOI By Working Smarter, Not Harder

Step #2

Page 44: Maximize Your NOI By Working Smarter, Not Harder

Step #3

Page 45: Maximize Your NOI By Working Smarter, Not Harder

Step #4

Page 46: Maximize Your NOI By Working Smarter, Not Harder

Jill and her team “Taught us to fish”….

Page 47: Maximize Your NOI By Working Smarter, Not Harder
Page 48: Maximize Your NOI By Working Smarter, Not Harder
Page 49: Maximize Your NOI By Working Smarter, Not Harder

“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

Page 50: Maximize Your NOI By Working Smarter, Not Harder
Page 51: Maximize Your NOI By Working Smarter, Not Harder
Page 52: Maximize Your NOI By Working Smarter, Not Harder
Page 53: Maximize Your NOI By Working Smarter, Not Harder

Occupancy Correlation

Page 54: Maximize Your NOI By Working Smarter, Not Harder

Thank You!

Page 55: Maximize Your NOI By Working Smarter, Not Harder