Paul Levy

Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center

Leadership in Motion

Table of Contents

a) How would you describe the situation Levy inherited at the BIDMC? What challenges did he face? Why did previous turnaround efforts fail? (4 points) 3

b) How did Levy get started in his new job? What were his objectives and what did he accomplish 1) prior to his first day of work? 2) on his first day? 3) during his first week? (4 points) 3

c) What (if anything) was distinctive about the way Levy went about formulating, announcing and implementing the recovery plan? How did he overcome resistance? (3 points) 4

d) How did Levy tackle the problem of the BIDMC's "curious inability to decide?" (3 points) 5

e) In describing his leadership style, Levy speaks of the CEO as teacher. How has he defined that role? Why has he chosen to focus on it? What skills does it require? (3 points) 5

f) What did members of your team learn from completing this case? 6

g) How might members of your team use this information in their current or future jobs? 6

a) How would you describe the situation Levy inherited at the BIDMC? What challenges did he face? Why did previous turnaround efforts fail? (4 points)

Two unique corporate cultures, Beth Israel Hospital and Deaconess Hospital merged in 1996 to become Beth Israel Deaconess (BID). To compete with Partners, BID and a few other hospitals combined forces and formed Care Group Systems (CGS). Lacking leadership commitment, BID was in chaos and consistently posted operating losses in millions of dollars per year. Additionally, although advised on numerous occasions, BID was inept in implementing restructuring plans and consequently had excessive employee turnover, which resulted in poor patient care.

Succinct and expert advice to reorganize BID was never implemented. Although BID would agree to change, execution was postponed or disregarded due to the myriad level of...