Team Case Study: Vitality Healthcare

Team Case Study: Vitality Healthcare

The central components of your analysis should include

  • Issue identification
  • Issue analysis
  • Solutions
  • Potential limitations to your solutions

The case analyses provide an opportunity to apply the class concepts in the solution of practical problems. The following are suggested questions to be used to assess the case analysis:

Issue identification

  • What are the key problems in the case?
  • 5 levels of measurements – not rated employees
    • Forced distribution of rating
  • Lack of incentive and proper measurements for R&D
    • Unmotivated employees (if no innovation = no market share gain, or staying ahead of competition = little to no revenue)
    • employees not willing to do extra work beyond job responsibilities
  • Manager lack of accountability
    • Uniform ratings are still being given
    • No buy-in from managers
    • No training of implementing new system
    • Managers don’t feel comfortable to give high or low ratings
  • No way of identifying top performers vs low performers
  • Challenge → timing of annual reviews/appraisals
    • Leads managers to do inaccurate ratings or not take them seriously
    • Too closely aligned with merit increases
    • What are the symptoms of the various issues facing the organization?

Issue Analysis

  • What seems to be causing the key problems? What are the root causes?
  • Do some problems share a cause, or are they somehow otherwise related?

Developing and implementing an action plan / solutions

  • 1) What are your objectives for the action plan? Specifically, what problem(s) do you plan to address?
  • 5 levels of measurements – not rated employees
    • Define what does it mean to use or be a “not rated employees” is it 3 months of employment? 6 etc.
    • If you don’t have low performers &/or high performers → managers will be required to write → details about areas of growth for each employee
    • Add why the employees are receiving this score
    • Introduce team performance rating
      • If team does well, → individual “low rating” will be optional (and can have the option to have more high ratings for individuals)
    • Keep individual rating (double rating system)
  • Lack of incentive and proper measurements for R&D
    • Extraordinary awards to star employees who make innovations or work on special projects that helps gain market share → tie back business strategies
  • Manager lack of accountability
    • Upward survey for direct reports (Before and after implementation of retraining sessions/learnings sessions)
    • If given great scores → managers will be compensated
  • No way of identifying top performers vs low performers
    • Listing quarterly objectives → make it clear if you do extra work then you get extra rewards
  • Challenge → timing of annual reviews/appraisals
    • Change: when employees are being evaluated and how many times?
      • Quarterly basis – coaching/feedback sessions
        • Low performers
        • High performers → recognition
        • Revise objectives and see how employees are doing with objectives
      • Annual
        • Compensation – Formal review
        • What is your time horizon?
      • 1-2 months of creating action plan and action steps
        • Create detailed timeline
      • 3-4 months implement of revised PMET 2
        • Senior leadership & executive
        • Train managers on new system
        • Host learning sessions for employees fully understand the incentive programs
      • Month 6
        • Everyone should be same page
      • Month 12
        • Measure results & compare previous years results
        • Send survey to employees to measure satisfaction of incentive and compensation
        • Give update to the CEO
      • Month 18 → 1 year (after all learning sessions completed)
        • Send survey to measure employee satisfaction and manager satisfaction
      • Month 24?
        • Send another survey
        • Review revenue
        • Describe your action plan. Be specific and concrete about your actions, rather than relying on broad prescriptions, such as “stronger leadership,” “better communication,” or “do more research.”
        • How will you evaluate your action plan to determine the level of effectiveness?
      • After survey for employees & supervisors
      • Measure turnover rate, retention, project ideas, product launches “Go-to-market” products, market share, where we are in terms of leading innovation
      • Financial figures from last year, revuence, profit, share prices
      • Meetings/ one-one with key talent & managers
      • Market survey focused on the compensation & PMET system satisfaction by third party
        • See reputation of the company externally
        • Internally with current employee pool

Potential limitations to your solutions

  • Manager resistance
    • Doing extra work w/ quarterly conversations
    • Retracting from their duties due to attending training sessions
    • Uniform rating continued regardless of training
    • Forced Rating Systems still doesn’t feel comfortable to managers?
  • Employee
    • Still confused on how the process works
  • Timing
    • Length of implementation of changes – takes too long; fall behind and competitors gain market share
    • Time consuming to see results of performance system
  • Board & CEO
    • Take too long to see results
  • Cost
    • Cost of labor → training
    • 3rd party fee – surveys
  • Surveys
    • Ineffective answers or comprehensive
    • Questions – don’t provide answers to CEO/Board