The Transformational Power of a Mission-Driven Strategy:: Extraordinary Diversity Management Practices and Quality of Care

Abstract

W hy do some organizations struggle or plateau with diversity management programs while other organizations flourish and excel? The authors became interested in this question as part of a larger research project exploring diversity management competencies in organizations.We are especially interested in this issue within the context of the health care industry. Well-documented demographic shifts, resulting in the browning and graying of America, pose extraordinary challenges for health care on two fronts. First, a shrinking and aging talent pool will result in shortages among primary care physicians, nurses, lab technicians, and physical therapists. Some will be replaced with more racially and ethnically diverse workers. Yet, womenandpeopleof colorhaveonlymade incremental advances into management and professional roles. On the patient side, increasing racial and ethnic diversity heightens the importance of culturally appropriate care. The swelling ranks of seniors needing extended care for age-related chronic diseases (e.g., cancer, heart disease, musculoskeletal disorders) will increase exponentially. Yet persistent quality problems and racial disparities in care indicate that the industry has been slow to respond to this perfect storm. Diversity management is a means to address these health care challenges. Effective diversity management involves valuing and utilizing the collective talents and contributionsof all individuals, regardlessofdifferences and similarities, in ways that significantly enhance organizational performance. In health care, this entails cultivating skills that integrate quality improvement and cultural sensitivity to meet the needs of diverse patients. Therefore, diversitymanagement practices are embedded into the organization’s overall strategy, not just confined to human resource practices. However, like other sectors, health care organizations struggle with effective diversity management. Why? Some contend that diversity is viewed as a nuisance and threat to the status quo, rather than a resource to leverage. This dim view of diversity results in inadequate funding, staffing, support, and therefore stalled success. Yet, we wondered what makes leaders view diversity positively, as a resource to achieve their goals? Emerging research shows that when senior leaders articulate a sincere and strategic commitment to diversity management, supported by their actions, organizations reap the benefits. We believe there is a need to understand how such leaders navigate the change process to ensure the successful diffusion and implementation of diversity management throughout a health care organization. We selected SSM Health Care as the focal organization for this case study because of its reputation for excellence, consistently satisfying the majority of its stakeholders, and a historic, leading edge commitment to managing diversity. In 2002, SSM Health Care was the first health care system to win the prestigious Malcolm Baldrige National Quality Award. SSM Health Care earned acclaim because of its exceptional performance on critical success factors: leadership, strategic planning, process measurement and management, human resource management, and high quality of patient care. Through this case study, we examine how SSM Health Care’s generative view of diversity management practices was interwoven throughout the organization to produce extraordinary results.