Health Care & Higher Education: Different Industries, Similar Profiles

Introductionbe reluctant to embrace the changes required to
Over the past several months, members ofrespond to dynamic marketplace conditions. In
Phillips & Associates have remarked on a growingacademia, the president requires input from
trend: mid- to senior-level managers andfaculty members. With decisions made by
administrators are successfully making thecommittee, change can come slowly. In these
transition between the health care and higherdynamic industries, however, it is imperative that
education industries when seeking new careerorganizations move quickly to mitigate risk. In
opportunities.addition, the administrators of higher education
We were curious about this phenomenon andand health care facilities must deal with a unique
decided to investigate further. We spoke withgroup of service providers, physicians and
leaders who had moved between the twoprofessors, who are often independent,
industries about their reasons for making theentrepreneurial, and somewhat autonomous.
switch. We also talked with folks about theThe types of roles in which people have made
similarities and differences between the twosuccessful transitions from one industry to the
industries.other are varied, including support services,
We want to share with our clients the insights wedevelopment, information systems, facilities and
are witnessing in the marketplace. We believe thatfinance. Having worked in both industries, Cheryl
this information will change some of the waysHoffman, former Chief Financial Officer at Beth
you look at recruiting, as well as the way youIsrael Deaconess Medical Center and now Finance
look at future career opportunities.Dean/Chief Financial Officer of the Faculty of Arts
Health Care And Higher Ed: What Similarities Do& Sciences at Harvard University, provides this
They Share?view: "The leadership structure within the
The health care and higher education industriesdepartments is very similar between the two
share a similar profile and nowhere is that moreindustries. For example, the departments on the
apparent than in New England. In fact, some ofmedical side are often divided along clinical lines,
the country's leading universities are located insuch as pediatrics and surgery, with a chief
New England. Many of these colleges andheading each; on the faculty side, the structure is
universities also have prestigious medical schools,divided along department lines such as humanities
such as Tufts, Boston University, University ofand social science with a department chair of
Massachusetts, Yale, Harvard, Brown andeach. If you look at the roles and titles of
Dartmouth, and they are affiliated with the area'sadministrators between the two industries, you
top teaching and community hospitals. Garywill see that health care and academia have
Vassar, Director of Human Resources atparallel responsibilities: for example, both may
Children's Hospital, notes that the close affiliationhave a vice president in charge of plant and
between academia and health care also extendsfacilities or a vice president of finance." Another
into the training of allied health professionals; nowexample in the finance area is the controller or
most nurses and other non-physician providerstrust fund finance position that is similar in both
are trained in schools that are part of universityhealth care and higher education, especially given
or college systems. In addition, many of thesimilar cultures, missions and operations.
instructors for these academic programs are alsoTransitioning Between The Two Industries
practitioners.The fact that there are so many similarities
Besides sharing a close connection from anbetween health care and higher education is good
academic perspective, health care and highernews for professionals in both industries. Many
education institutions share many similarities inpeople have successfully made the transition from
terms of organizational structure, philosophy orone industry to the other. The skills required for
mission and personnel needs. These similaritiesmid- to senior-level administrative positions are
open the way to increased career opportunitiescomplementary and applicable to either industry.
for seasoned organizational leaders, especiallyThe cultures are similar, as are the roles within
during these times of strong demand coupled withthe operations area, often leading to a smooth
a limited supply of professionals. For this reason,transition for the new employee.
many employers are seeking to hire people fromMIT's Avakian believes that the essential skills for
similar industries, rather than requiring specificmany roles, such as human resources, purchasing,
industry experience.facilities management, budget, and audit are easily
Health care and higher education organizations aretransferable between industries. "The nuts and
service providers. Their success depends on theirbolts of the job are similar. I have a friend in HR
strong reputation and the satisfaction of theirat a manufacturing firm; she spends a
customers with the quality of the serviceconsiderable amount of time dealing with incentive
provided. Quality is determined through consumercompensation and other for-profit issues. My job
feedback and success rates. This contrasts withrequires more time dealing with labor/employee
many other industries, which are sales-orientedrelations and management structure issues in
and product-driven in nature.higher education, just as I did when I worked in
Health care and higher education organizationshealth care. Similarly, in the specialty fields, a
have to compete mightily for customers, requiringresearch biologist here at MIT also could work in
these institutions to invest in the resources thathealth care."
will help them be more qualityoriented, moreMark Kostegan, President of the Healthcare
cost-conscious, more customer service driven andFoundation of Cape Cod, hired several
more innovative than their competitors.professionals with higher education experience into
Higher education and health care attract individualspositions he supervised while at Children's Hospital
with similar profiles. "The service mission of bothand Massachusetts Eye & Ear Infirmary. "I looked
health care and higher education tends to attractinto the academic pool for talent in the area of
people who are engaged in a social cause,"development and concluded that if you can raise
according to Laura Avakian, Vice President ofmoney successfully in academia, you can transfer
Human Resources at the Massachusetts Institutethose skills to health care, and vice versa. It's the
of Technology (MIT) and former Senior Vicesame skill set, tactics and process. Basically it's a
President of Human Resources at Beth Israelservice-based environment with a strong social
Deaconess Medical Center and CareGroup, Inc.cause. There are few obstacles to prevent
"Employees at all levels have social good as ansomeone from transitioning from one
important cause in their daily work."environment to another. With the right skill set,
Both health care and higher education areyou can be successful in either arena."
labor-intensive industries, employing a widelyKeene Metzger, Dean for Administration at
diverse population, in terms of ethnicity, jobRadcliffe Institute for Advanced Study at Harvard
function and level of education. As AvakianUniversity and former Vice President of Finance
explains, "You have highly educated people at oneat Somerville Hospital, acknowledges that
end of the spectrum, such as doctors andswitching industries can be worrisome. One may
professors. On the other end of the spectrum,be concerned with the different skill base and
there is a large population of culturally diverseknowledge needed for the new industry. As a
individuals whose first language is often not English.financial officer for the third time, but without
These are the dominant ends of the spectrumexperience in academia, Metzger had this to add:
with specialized folks in between, providing an"The key is to listen to the advice of those who
interesting organizational structure, whichhave been in the industry for a long time. There is
significantly affects policy making. This is ofa wide range of opportunities and if you listen to
particular importance since these industries areothers you can benefit from their strengths and
complex, labor intensive organizations, whereknowledge. Keep your eyes and ears open."
salary and benefits account for about 50% of theCheryl Hoffman agrees, "Be open minded; learn
operating budget. Compare that to the airlineand begin to understand the organization before
industry, for example, which may be at 20%. Inyou move forward with changes. New blood and
health care and higher education, you neednew perspectives can be very healthy for the
hundreds of people with specialized skills at allorganization as well for the individual."
different levels to make the place run well."This article is drawn from Phillips DiPisa’s
Most health care and higher education institutionsThought Leadership Library. You can find more
are long-standing, not-for-profit organizations withperspectives on managing today’s complex
rich traditions dating back one hundred years orhealthcare organizations on our Web site at
more. Over time, they evolved into complexPhillips, DiPisa & Associates
organizations, where decision-making involves input62 Derby Street
from a variety of key constituencies with aHingham, MA 02043telephone: 781-740-9064
variety of viewpoints. For example, hospitalCopyright (c) 2007. Phillips, DiPisa & Associates.
administrators must involve physicians who may