1. Building a Successful Organization from the Bottom Up Mark Laret CEO UCSF Medical Center ABOG, April 5, 2005

2. My Undergraduate Experience at UCLA

3. MLK Holiday, 1994

4. Opportunity at UCI

5. UCSF Medical Center 2000 End of failed merger with Stanford Lead management positions held by Hunter Group $60 million annualized operating loss Low of $12 MM (6 days) cash on hand “Reportable condition” on audit IT, other infrastructure in poor condition Lack of clear strategic direction Low employee and faculty morale Low patient satisfaction

6. UCSF Medical Center 2005 Operating income will exceed $60 million Cash approximately $120 million Strong and increasing support of academic mission Major investments in facilities and equipment underway Long-term hospital replacement plan developed Implementing strategic plan Highest patient satisfaction of SF hospitals Improved employee turnover and morale UCSF Medical Center ranks 6 th among top 10 hospitals in US

7. Successful Organizations Are built from the bottom up but Rely on the top to empower the bottom

8. Managing in Bad Times Accept as a given that there are always problems in every organization We only control the sail... and not the wind.

9. The Importance of Looking in the Mirror Goleman, Boyatzis and McKee: Primal Leadership: Realizing the Power of Emotional Intelligence Leader’s mood and behaviors drive the moods and behaviors of everyone else. Start in front of the mirror.

10. The Mirror, continued Tom Hopkins: How to Master the Art of Selling To be something, act like something. Accept: Leaders are in service to everyone else in the organization.

11. The Importance of Knowing Where We are Heading Douglas McGregor: The Human Side of Enterprise Theory X: mushroom diet Theory Y: ownership of work leads to creativity and commitment

12. UCSF Medical Center Mission, Vision, Values MISSION: Caring, Healing, Teaching, Discovering VISION: To be the best provider of healthcare, The best place to work, and to have The best environment for teaching and research VALUES: Embodied in PRIDE: Professionalism, Respect, Integrity, Diversity and Excellence

13. Values Roy Disney: “It’s not hard to make decisions when you know what your values are.” Aaron Lohr: “Always err in favor of the patient.” Widely accepted and practiced values help control behavior

14. The Importance of People Jim Collins: Good to Great People first, strategy second The criteria: Integrity Attitude Intelligence Hire people who are better than you

15. The Importance of Communication “Communicate, communicate, communicate until you are sick of hearing yourself, then communicate some more.” Jack Welch, former CEO General Electric

16. The Importance of Getting Good Advice UCSF Executive Council: Dick Rosenberg, former chair B of A Mike Ullman, CEO JC Penney Max Messmer, CEO Robert Half International Toni Rembe, Pillsbury law firm Howard Lester, Chairman Wm Sonoma Doug Shorenstein, Shorenstein Real Estate Bill Davidow, Mohr Davidow Engaged in every major issue facing UCSF Medical Center Every leader needs people who will tell you the truth

17. Summary Every organization has challenges Getting everyone, from the bottom up engaged is key to success This begins with the leader him/herself Clear and compelling mission, vision, values The right people Communicate often Get advice BUILDING SUCCESS FROM THE BOTTOM DEPENDS ON YOUR ACTIONS AT THE TOP