Health Care & Higher Education: Different Industries, Similar Profiles

Introductionchanges required to respond to dynamic marketplace
Over the past several months, members of Phillips &conditions. In academia, the president requires input
Associates have remarked on a growing trend: mid-from faculty members. With decisions made by
to senior-level managers and administrators arecommittee, change can come slowly. In these
successfully making the transition between the healthdynamic industries, however, it is imperative that
care and higher education industries when seekingorganizations move quickly to mitigate risk. In
new career opportunities.addition, the administrators of higher education and
We were curious about this phenomenon andhealth care facilities must deal with a unique group of
decided to investigate further. We spoke withservice providers, physicians and professors, who are
leaders who had moved between the two industriesoften independent, entrepreneurial, and somewhat
about their reasons for making the switch. We alsoautonomous.
talked with folks about the similarities and differencesThe types of roles in which people have made
between the two industries.successful transitions from one industry to the other
We want to share with our clients the insights weare varied, including support services, development,
are witnessing in the marketplace. We believe thatinformation systems, facilities and finance. Having
this information will change some of the ways youworked in both industries, Cheryl Hoffman, former
look at recruiting, as well as the way you look atChief Financial Officer at Beth Israel Deaconess
future career opportunities.Medical Center and now Finance Dean/Chief Financial
Health Care And Higher Ed: What Similarities Do TheyOfficer of the Faculty of Arts & Sciences at Harvard
Share?University, provides this view: "The leadership
The health care and higher education industries sharestructure within the departments is very similar
a similar profile and nowhere is that more apparentbetween the two industries. For example, the
than in New England. In fact, some of the country'sdepartments on the medical side are often divided
leading universities are located in New England. Manyalong clinical lines, such as pediatrics and surgery, with
of these colleges and universities also havea chief heading each; on the faculty side, the
prestigious medical schools, such as Tufts, Bostonstructure is divided along department lines such as
University, University of Massachusetts, Yale,humanities and social science with a department chair
Harvard, Brown and Dartmouth, and they areof each. If you look at the roles and titles of
affiliated with the area's top teaching and communityadministrators between the two industries, you will
hospitals. Gary Vassar, Director of Human Resourcessee that health care and academia have parallel
at Children's Hospital, notes that the close affiliationresponsibilities: for example, both may have a vice
between academia and health care also extends intopresident in charge of plant and facilities or a vice
the training of allied health professionals; now mostpresident of finance." Another example in the finance
nurses and other non-physician providers are trainedarea is the controller or trust fund finance position
in schools that are part of university or collegethat is similar in both health care and higher education,
systems. In addition, many of the instructors forespecially given similar cultures, missions and
these academic programs are also practitioners.operations.
Besides sharing a close connection from an academicTransitioning Between The Two Industries
perspective, health care and higher educationThe fact that there are so many similarities between
institutions share many similarities in terms ofhealth care and higher education is good news for
organizational structure, philosophy or mission andprofessionals in both industries. Many people have
personnel needs. These similarities open the way tosuccessfully made the transition from one industry to
increased career opportunities for seasonedthe other. The skills required for mid- to senior-level
organizational leaders, especially during these times ofadministrative positions are complementary and
strong demand coupled with a limited supply ofapplicable to either industry. The cultures are similar,
professionals. For this reason, many employers areas are the roles within the operations area, often
seeking to hire people from similar industries, ratherleading to a smooth transition for the new employee.
than requiring specific industry experience.MIT's Avakian believes that the essential skills for
Health care and higher education organizations aremany roles, such as human resources, purchasing,
service providers. Their success depends on theirfacilities management, budget, and audit are easily
strong reputation and the satisfaction of theirtransferable between industries. "The nuts and bolts
customers with the quality of the service provided.of the job are similar. I have a friend in HR at a
Quality is determined through consumer feedbackmanufacturing firm; she spends a considerable
and success rates. This contrasts with many otheramount of time dealing with incentive compensation
industries, which are sales-oriented and product-drivenand other for-profit issues. My job requires more time
in nature.dealing with labor/employee relations and
Health care and higher education organizations havemanagement structure issues in higher education, just
to compete mightily for customers, requiring theseas I did when I worked in health care. Similarly, in the
institutions to invest in the resources that will helpspecialty fields, a research biologist here at MIT also
them be more qualityoriented, more cost-conscious,could work in health care."
more customer service driven and more innovativeMark Kostegan, President of the Healthcare
than their competitors.Foundation of Cape Cod, hired several professionals
Higher education and health care attract individualswith higher education experience into positions he
with similar profiles. "The service mission of bothsupervised while at Children's Hospital and
health care and higher education tends to attractMassachusetts Eye & Ear Infirmary. "I looked into the
people who are engaged in a social cause," accordingacademic pool for talent in the area of development
to Laura Avakian, Vice President of Humanand concluded that if you can raise money
Resources at the Massachusetts Institute ofsuccessfully in academia, you can transfer those skills
Technology (MIT) and former Senior Vice Presidentto health care, and vice versa. It's the same skill set,
of Human Resources at Beth Israel Deaconesstactics and process. Basically it's a service-based
Medical Center and CareGroup, Inc. "Employees at allenvironment with a strong social cause. There are
levels have social good as an important cause in theirfew obstacles to prevent someone from transitioning
daily work."from one environment to another. With the right skill
Both health care and higher education areset, you can be successful in either arena."
labor-intensive industries, employing a widely diverseKeene Metzger, Dean for Administration at Radcliffe
population, in terms of ethnicity, job function andInstitute for Advanced Study at Harvard University
level of education. As Avakian explains, "You haveand former Vice President of Finance at Somerville
highly educated people at one end of the spectrum,Hospital, acknowledges that switching industries can
such as doctors and professors. On the other end ofbe worrisome. One may be concerned with the
the spectrum, there is a large population of culturallydifferent skill base and knowledge needed for the
diverse individuals whose first language is often notnew industry. As a financial officer for the third time,
English. These are the dominant ends of thebut without experience in academia, Metzger had this
spectrum with specialized folks in between, providingto add: "The key is to listen to the advice of those
an interesting organizational structure, whichwho have been in the industry for a long time. There
significantly affects policy making. This is of particularis a wide range of opportunities and if you listen to
importance since these industries are complex, laborothers you can benefit from their strengths and
intensive organizations, where salary and benefitsknowledge. Keep your eyes and ears open." Cheryl
account for about 50% of the operating budget.Hoffman agrees, "Be open minded; learn and begin to
Compare that to the airline industry, for example,understand the organization before you move
which may be at 20%. In health care and higherforward with changes. New blood and new
education, you need hundreds of people withperspectives can be very healthy for the organization
specialized skills at all different levels to make theas well for the individual."
place run well."This article is drawn from Phillips DiPisa's Thought
Most health care and higher education institutions areLeadership Library. You can find more perspectives
long-standing, not-for-profit organizations with richon managing today's complex healthcare organizations
traditions dating back one hundred years or more.on our Web site at
Over time, they evolved into complex organizations,Phillips, DiPisa & Associates
where decision-making involves input from a variety62 Derby Street
of key constituencies with a variety of viewpoints.Hingham, MA 02043telephone: 781-740-9064
For example, hospital administrators must involveCopyright (c) 2007. Phillips, DiPisa & Associates.
physicians who may be reluctant to embrace the