Trustee interview: Robert E. Radford. Interview by Tracy Knudson.
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In early 1991, former Massachusetts Gov. Michael Dukakis spent three months at the University of Hawaii School of Public Health studying the state's unique system of health insurance. Recently he talked with JAHP Editor in Chief Richard Sorian about the lessons he learned from looking at Hawaii's "universal health coverage" and why the experience was different in his home state.
Globe Metallurgical Inc., a $115 million supplier of specialty metals, is best known as the first small company to win the Baldrige Award in 1988. But there is much more to this gutsy little company than total quality. During the 1980s, Globe transformed itself from a rust-belt has-been on the verge of bankruptcy into a high-technology, high-quality industry leader. Along the way, the company went private in a management-led leveraged buyout, embraced flexible work teams, adopted a high-value-added, niche marketing strategy, and took its business global. Leading the way in Globe's reinvention was Chief Executive Arden C. Sims, the slow-talking son of a West Virginian coal miner. When he joined the company in 1984, Sims had no experience in the new managerial techniques. He was a product of the old school of management: cut costs and trim operations to regain competitiveness. But he soon discovered that old-style management was not enough to battle offshore competitors, an unproductive work force, rising costs, and outdated production technology. He was forced to go looking for new ideas and practices. In a succession of learning experiences, Sims attended a seminar on total quality in 1985, paving the way for the company's quality program; he discovered the power of flexible work teams when management was forced to run the furnaces during a year-long strike; he organized an LBO, allowing him to change the work order even more dramatically; and he took the company global and into highly profitable niche markets by severing a long-standing relationship with Globe's sales and marketing representative. As a result of these and other changes, Globe leads the specialty metals industry in virtually all performance measures.
Nike's advertising slogans--"Bo Knows," "Just Do It," and "There Is No Finish Line"--have moved beyond advertising into popular expression. Its athletic footwear and clothing have become a piece of Americana. Its brand name is as well known around the world as IBM and Coke. Behind the slogans and the flashy TV commercials is the vision of its founder, chairman, and CEO, Phil Knight. Since forming the company in 1962, Knight has taken Nike from a small-time distributor of Japanese track shoes to the top of the athletic shoe and apparel market. But not without a stumble. Along the way, Knight discovered that technological innovation alone could not continue to drive growth. When sales stagnated in the mid-1980s, Knight and Nike learned several hard lessons on how to build brands and understand consumers, and they transformed their technology company into a marketing company whose product is its most important marketing tool. "Ultimately," says Knight, "we wanted Nike to be the world's best sports and fitness company. Once you say that, you have a focus. You don't end up making wing tips or sponsoring the next Rolling Stones world tour." To keep the company growing, Nike began splitting its brands into sub-brands. In tennis, Nike divided its shoes into Challenge Court--for younger, more active players--and Supreme Court--for older, more mature players. That approach brought the company to a broader range of consumers while preserving the customer base. And to create an emotional tie with the consumer, Nike started advertising on TV. "Sports is at the heart of American culture," Knight says. "You can't explain much in 60 seconds, but when you show Michael Jordan, you don't have to. It's that simple."
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Greater Southeast Community Hospital is located in the center of one of Washington, D.C.'s most troubled and isolated neighborhoods. Like so many inner-city hospitals, it serves a population struggling with high rates of poverty, crime, and illiteracy. As a result, the area suffers from the highest rates of infant mortality, cancer, and coronary disease in the D.C. area. When Tom Chapman joined the hospital in 1984, it was giving away roughly 11% of its care-or about $11.5 million worth of medical services to indigent residents. If things continued at that rate, the hospital would soon go out of business. His challenge: to keep Greater Southeast solvent while shoring up the community that surrounds it. Chapman, who grew up in a housing project himself, understands the problems of inner cities innately. Working in tandem with community residents, Greater Southeast has developed a broad range of preventive and supportive programs, such as housing, day care for children and the elderly, nursing home services, and literacy training. Last year, Chapman was promoted to CEO of Greater Southeast Health Care, a broad network comprising two hospitals, three nursing homes, a physician care network, and over 50 community programs. He remains true to his original mission: "I want to create a network of participants, stringing together various organizations and players, each of whom have something special to contribute to urban problems.... What we are really doing is creating a community."
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In 1991, US News and World Report rated The Johns Hopkins Hospital as the best hospital in the country. Its survey of physicians revealed that Hopkins is perceived to be at or near the top in 13 of the 15 specialties studied. For the past three years, The Johns Hopkins Health System has been taking a hard look at the nonclinical aspects of health care delivery. Surveys of patients, physicians, nurses, and employees have revealed a litany of frustrations that can interfere with the delivery of excellent care. To focus on these issues, Hopkins launched a systemwide total quality management (TQM) process in 1989. Dr Robert M. Heyssel and other senior executives provided leadership that has been essential to the initiation and maintenance of the TQM process at The Johns Hopkins Health System. TQM has been associated with impressive results in several areas. In addition, more than 500 people have received intensive training in the use of statistical tools and teamwork. An additional 900 people are scheduled to attend this program in the future.
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