Here is a great example from Barry Arbuckle, CEO of MemorialCare Medical Centers, a six-hospital system in Southern California that uses mentoring as part of its development program for middle managers.
Arbuckle says the payoff for mentorship is hard to judge and can often take years to show results. At Memorial Care, mentoring of middle managers has paid off in better leadership development and succession planning.
About ten years ago, the system hired about 35% on new managers from inside of the system. That meant that about 65% were hired from the outside. It also meant the system paid a huge price in two ways:
1. They had big expenses for recruiting, hiring, orienting, training, enculturating, supporting, and supervising this large group of people.
2. It also meant there were many non financial costs they incurred in lost productivity and leadership during the time these outside leaders were getting their new knowledge, skills, and jobs established.
Today, the system’s hiring about 73 percent insiders. That’s a very BIG cost savings for the hospital system!They are able to do so because they don not have to look outside their organization to find the tallent they need. Their mentoring and succession planning program has the needed talent ready as needed almost all the time.
Now they only look outside for talent when the needs are very specific an no internal person as that specific interest.
Now, when every the put in place a new top manager, it’s almost always someone who knows the organization, knows and has already demonstrated effectiveness in working for it’s Mission, and knows all the people and challenges on day one. There is no learning curve – they “hit the ground running” and are effective much sooner.
Sound good? Need to end the ineffective and wasteful hiring from outside? Need to be sure you have known, proven talent at the ready in your organization?
Consider mentoring and succession planning. It IS the solution.