Davita Change Management Case Study

CLIENT

DaVita is a leading provider of dialysis services in the United States, treating patients with chronic kidney failure and end stage renal disease. As of 2014, DaVita Kidney Care provided dialysis services to over 177,000 patients at 2,239 outpatient dialysis centers, of which 2,152 centers are located in the United States and 87 centers are located in ten countries outside of the United States.     

CHALLENGE

Success, however, did not come easily. In 1999, the Renal Care Division was known as Total Renal Care. The result of 3 poorly integrated prior mergers, they were weeks from insolvency when Kent Thiry took over as CEO. The company he inherited was characterized by 52% annual turnover, poor patient experiences, flat revenues, and reeling profits. 

CHANGE

Thiry immediately hired two leaders with whom he had experience in healthcare turnaround, who in turn engaged FMG Leading to help in the complex task of simultaneously addressing culture and operations.  FMG Leading began its work by leading a nationwide benchmarking effort designed to identify the best practices of high performing service providers across multiple industries and improve the quality of leading in middle management ranks, seen as a key driver of poor performance. Tasked with developing unique and sustainable solutions, FMG Leading built the first emotional-intelligence based leader education curriculum for “DaVita University”, resulting in a dramatic transformation in the quality and effectiveness of their leaders and accelerating the direction and quality of their culture change.       

The case is attached.

1. Once you have read the case fully, you should write several paragraphs of reaction to the case and decide what actions you would recommend. The case ends with some basic questions, which should be used as the focal point of the response

Please give general thoughts and suggestions, and address the questions at the end of the case.

Solution Preview

DaVita's Strategy

DaVita's strategy was based on the rebirth of the organization by doing something larger than what was there. The strategy had to implement many people, team, and culture friendly policies. These in turn had to be consistent with the basic values of the organization because they were a means to achieve the end. The management team which was already discouraged was encouraged to start with an end in the mind. The strategy was aimed to help people envision a special place where people share dreams and a higher sense of purpose. It made people shift their focus from pure profits to building a healthy community. It was a comprehensive change strategy that encompassed change management, communications, organization design, training, and measurement components.

The strategy transformed the organization from a nearly bankrupt provider of dialysis services to its position today as the leader in kidney care.

Managing the integration of Gambro

The acquisition of Gambro Healthcare meant complete HR transformation. To complete the acquisition, DaVita would need a more robust HR system to seamlessly accommodate hundreds of employees from approximately 520 Gambro facilities. To successfully integrate the acquired company into DaVita, Thirty needs to ensure that first the existing system at DaVita is ...

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *