Mayo Clinic is the worlds first and largest non-profit health care organization. More than 3,300 physicians, scientist and researcher and 46,000 allied health care staff work for Mayo Clinic in their Rochester, Minnesota, Jacksonville, Florida, Arizona and Scottsdale/Phoenix.
Mayo's mission is to "provide the best care to every patient every day through integrated clinical practice, education and research". To achieve Mayo's mission Doctors from every medical speciality work together to care for patients, joined by common system and a philosophy of "the needs of the patients come first." The Mayo model of care provides the framework in which all employees perform their responsibility by team work rather than individual contribution.
The Mayo model of care provides the framework in which all employees perform their responsibility by team work rather than individual contribution. Workforce management is one of the major components of its strategies and has been leader in helping the Mayo to deliver the Mayo Model of Care. HR function which responsible for the hiring, rewarding, and retaining the employees becomes a core role of the strategic plan of Mayo Clinic.
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HR department has created highly committed workforce with low turnover rate. Mayo has a workforce where teamwork is the absolute norm. The main factors help to make this happen is a salaried system without incentives which eliminates competition among employees, while fostering a deeper cooperation for the greater good of all stakeholders. Mayo uses value-based hiring, looking for team player who have the ability to advance within organization, can handle ambiguity and must be flexible, but farm when necessary. Promoting team work through strategic rewards is the main compensation philosophy in Mayo Clinic.
May has been ranked as one of the top medical institution in the world for many decades but the entire health care industry has been experiencing enormous challenges over the past few years. Mayo is not immune not this challenges and faces the risk of losing critical components of its culture and overall tradition of excellence that have been at the core of its success.
The specific HR strategies that have helped Mayo become so successful.
Workforce management is one of the important components of its strategies. HR function of Mayo has been leader to deliver the Mayo Model of Care. Mayo's HR department continues to work diligently towards helping the organization to meet its mission. The main HR strategies which helped Mayo to become successful are given below:
Developing Teams and a Culture of Teamwork: In the mayo system, employees are expected to get along or employees are someone who has been identified as a person who can get along with the rest of the team. Team work is the part of Mayo's Culture. Mayo fostered an atmosphere of cooperation and working together with minimal squabbling. One of the factors that help to make this happen is salaried system without incentives. It eliminates competition among employees, while fostering a deeper cooperation for the greater good of all stakeholders. Mayo enjoys and benefits from a workforce where teamwork is the absolute norm. Mayo's biggest innovation is the way of working - especially way of working in teams.
Employee Recruitment and selection: One of the most important tasks of HR department is to select the right person for every opening. Mayo uses value-based hiring, looking for team player who have the ability to advance within the organization, demonstrate empathy for others, and can handle ambiguity. Employees must e flexible but farm when necessary. Employees must not be rule driven and must adhere to the utilitarian principle of the greatest good. A strong work ethic and the ability to be an outstanding team player are among criteria Mayo seeks in hiring new employees.
Its quality initiative within the department resulted in a reduction in time to fill a job from a median of 35 days 29 days, it also decrease the cost of hiring.
Diversity is another important recruitment strategy of Mayo. In 2007, 12% of he employees hired were minorities.
Promoting Teamwork thorough Strategic Rewards: Mayo emphasizes compensation strategies to foster the attitude and behaviour that fit with the Mayo Model of Patient Care. In mayo employees are paid 60th percentile of the market range. In addition, employees are given a comprehensive benefit program that includes medical, dental, tuition reimbursement, defined benefit pension plan, and other retirement option. The reward program is based on the principle that no one is big enough to be independent of others.
Always on Time
Marked to Standard
With its current HR strategies Mayo Clinic has created Highly Committed workforce with only % turnover rate annually. The HR department of Mayo works diligently to support recruitment efforts through various retention strategies. The focus continues on ensuring employees satisfaction. Frequent employee surveys, meeting with employees, and observations help to gauge employee's satisfaction.
2. The Key HR deliverables?
HR Deliverables focus on the benefits to the firm that would affect the overall strategy of the firm. It is important to identify the performance drivers and integrate them directly into performance criteria giving them equal weight with the more traditional performance measures. HR enablers reinforce the core performance drivers.
In Mayo Clinic employee productivity is identified as a performance driver so re-skilling and training can be considered an enabler. Here company need to motivate, train for new skills and make a good work environment. The key HR deliverables for Mayo Clinic:
Train for the new skills
Motivate through reward
How HR can more effectively contribute to the mission of Mayo.
By following way HR department can more effectively contribute to the mission of Mayo:
By distinguishing clearly HR doables from HR deliverables. HR deliverables influence the firm's ability to implement strategy while HR doables do not. By making this distinction more clear-cut, HR managers are encouraged to think strategically instead of simply thinking operationally.
3.b Enables cost control and value creation: HR Scorecard always expected to control costs for the firm. At the same time, HR has to fulfil its strategic goal, which is to create value. The HR scorecard helps HR professionals balance the two and find the optimal solution. It allows HR professionals to drive out costs where appropriate, but at the same time defend investments in intangibles and HR by outlining the benefits in concrete terms.
3.c Measures leading indicators: The HR scorecard links HR deliverables with implementation of the firm's strategy. The HR management system will have performance drivers, measures (leading and lagging) and preferred outcomes. The HR scorecard measure how well all of those factors are aligned and provides ongoing feedback.
3.d Strategy implementation: The cumulative effect of the HR Scorecard's deliverable measures provides the answer to the question regarding HR's contribution to firm performance. All measures have a credible and strategic rationale. Line managers can use these measures as solutions to business problems.
3.e HR professionals effectively manage their strategic responsibilities: The HR Scorecard encourages HR managers to focus on exactly how their decisions affect the successful implementation of the firm's strategy. This is due to the systemic nature of the scorecard. It provides a clear framework to think in a systemic manner.
3.f Encourages flexibility and change: The HR scorecard encourage flexibility and change because it focuses on the firm's strategy implementation which constantly demands change. With this framework, measures simply become indicators of the underlying logic that managers accept as legitimate. It helps them look at the bigger picture and since there are no perfect numbers, it makes it easier for managers to change direction when needed.
3.g Strategic Management System: The Balance Scorecard removes the barrier or issues of strategy implementation. It overcome the vision barrier through the translation of strategy, strategic resource allocates to overcome the resource barrier, cascading the scorecard to overcome the people barrier and strategic learning to overcome the management barrier.
3.h Communication tool: A well-constructed Scorecard eloquently describes the strategy and makes the vague and imprecise world of visions and strategies come alive through the clear and objective performance measures.
3.i Performance measure: Balance scorecard gives the complete picture of the employee, the organisational performance and guides in determining the critical success factors and performance indicators.
4. The core competencies HR professionals need to excel in today's organizations and how these competencies are relevant at Mayo.
5. The measures that should be used to evaluate proposed change.
6. How you will go about implementing the recommended changes.