Dynamic healthcare environment demands new career-planning tool

Healthcare Financial Management, Oct, 1998

Changes in the U.S. healthcare system are significantly challenging all those involved in the healthcare industry, but perhaps none more so than the senior healthcare financial professional. Increasing competition, uncertainty in the marketplace, a changing regulatory environment, and constraints on revenue generation are requiring healthcare financial professionals to shoulder increased, broader responsibilities; balance the needs of multiple constituencies; increase interactions with medical staff; and operate with limited financial and human resources.

The environment in which the healthcare financial professional attempts to deal with these challenges is one of increasing organizational complexity. Changing organizational configurations brought about by "rightsizing" initiatives, mergers and acquisitions, strategic alliances, and the like are reducing the number of traditional career opportunities, but simultaneously are offering broader operational and leadership roles for financial professionals.

In light of these changes, HFMA saw the need to assist members in further enhancing their diverse talents and skills. To do so, however, would require creation of a professional development model for the senior healthcare financial professional. This model would need to include a clear definition of not only the technical and professional skills required of the healthcare financial professional, but more importantly, the key behavioral characteristics or behavioral competencies necessary to perform effectively.

The development of the model began in 1997 with the formation of the HFMA Career Development Task Force. Led by former HFMA Chairman Bonnie Phipps, FHFMA, CPA, the task force reviewed data on more than 5,000 HFMA members classified as CFOs, vice presidents of finance, or other senior finance executives. From this data review, the task force was able to profile the credentials and experience of these individuals. The task force also reviewed HFMA's certification syllabus and the curriculum of several healthcare management graduate programs to identify the key skills and knowledge necessary for successful completion of these programs. Finally, the task force, working with two panels of experts (one panel formed by a group of CFOs from large healthcare systems, the other composed of financial executives from a diverse sample of small- to mid-sized healthcare organizations) and Hay Management Consultants, Chicago, Illinois, began compilation of key information related to:

* The role of the senior healthcare financial professional;

* The challenges facing the senior healthcare financial professional; and

* The key characteristics or competencies that drive superior performance.

What Are Competencies?

A competency is a personal characteristic that contributes to and/or predicts outstanding performance in a particular role. It is demonstrated by the actions an outstanding performer will take more often, in more situations, with better results.

Superior performance can be identified by two components: the result (for example, reducing the costs associated with a particular process), and the behavior demonstrated in accomplishing the result (for example, exhibiting a sensitivity to customers). Competencies represent the behavioral side of performance and include a variety of characteristics. These characteristics can be defined as follows:

Skill. A skill is a capability a person shows to do something well. An example would be having the ability to interview job applicants effectively and hire the best candidate.

Knowledge. Knowledge is information that a person uses in a particular area. Possessing specialized knowledge or a specific expertise may differentiate the senior professional from the junior professional.

Social role. A person's pattern of behavior that is reinforced by his or her social group or organization is that person's social role. Examples would include the person who behaves as an agent of change or, conversely, shows resistance to change. Social role also includes a person's view of his or her identity, personality, and worth. Seeing oneself as a developer of people or as being on a career "fast track" are examples of this personal view.

Trait. A trait is typical aspect of a person's behavior. Approaching life with optimism or listening well are examples of traits.

Motive or natural tendency. A motive or natural tendency is that which drives behavior in a particular area. Achievement, affiliation, and power are common motives. An outstanding waiter or waitress, for example, probably has a true interest in people, that is, an affiliative motive.

In the past, most career development programs have emphasized an individual's obvious technical knowledge and skills. Recent research, however, demonstrates that while skills and knowledge are necessary, even superior skills and knowledge alone are not sufficient for superior performance. What tends to differentiate superior from competent performance are the less obvious characteristics of social roles, traits, and motives. In addition, superior performance is not characterized by a unique or rare event but rather arises from an individual's spontaneous or normal, day-to-day approach to work.