The Cost Benefit of Interim Management in Home Care
Over the years we have provided numerous home care interim managers for home care executive level positions. On a few occasions we have been told that the cost of using one of our senior home care executives is more than they can afford. This has always intrigued me, because when we do a cost of service comparison, we frequently find that by the time we add in all the benefits and overhead burden, the interim home care executive costs about the same and in a couple of situations less. What we have found is that some home care organizations only look at the monthly salary of the previous executive and measure against that number alone. We find that if the employee burden of an organization is 20% or more, the cost of using one of our interim managers is about the same or depending on the salary of the previous executive, a little less. So there always needs to be a comparison of apples to apples when calculating the cost of an interim home care manager for a senior level position. But cost is only one area that a home care organization needs to think about in using an interim home care executive. The benefits sometimes prove to be so beneficial that in retrospect we have been told that the vacated executive position gave the organization an opportunity to really look at themselves, their weakness and strengths, and develop a meaningful and effective strategic plan to carry the agency forward.
When we fill an interim manager position, we do require that an organizational assessment be accomplished in order to make sure that the services are meeting the needs of the home care agency and that the interim home care executive is focused on the issues and goals that need attention. Not uncommon is the discovery of issues and problems that were not apparent to the higher level managers of the home care agency. Sometimes we find that the staff filling certain positions is either not competent for the position or their personality and style are disruptive to the team which makes it difficult to build a cohesive and effective management or staff team. In other situations we have found that the home care organization has very dedicated and competent staff, but the systems of the organization has not kept up with the changes in the environment and the implementation of required processes or software. In these cases we see time consuming “ work arounds” developed by the staff to accomplish what they know needs to be done. All of this is costly to a home care agency and frequently are not identified because the work is getting done. The benefit of an outside consulting firm with interim mangers doing the organizational assessment is that these types of issues get identified with recommended solutions for the owner or corporate officers so they have directions on how these can be addressed and resolved to the benefit of the agency.
Finally, the benefit of using an interim manager is that the agency does not lose momentum on previous projects and initiatives. It allows the agency to continue to function effectively and maintain their progress toward organizational goals and objectives. It also gives stability to the organization in a time of stress and flux. Using a seasoned executive assists the staff to move forward with confidence that they will be okay. One of the biggest mistakes that an organization makes is to allow a key position such as the Director, Administrator or CEO to go unfilled for 4 to 6 months. The company becomes distressed that the business is down, referrals are not coming in, and collections have fallen off the radar. Without a leader at the helm, critical things fall by the way side because there is no one at the top with the view of the “world” of the agency. It is a critical mistake to leave an executive level position empty. An agency without a leader is an agency afloat on the sea with no one at the rudder.
If you are in a position with an executive level position open and need help during this time of change, call Kenyon Homecare Consulting at 206-721-5091 or contact us online to see how we can help you through your agency transition.
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