Article

10 attributes driving performance improvement in healthcare organizations

Jun 26, 2025 · Authored by Mark J. Ross

1. Efficient and effective governance structure

Success starts at the top. High-performing healthcare organizations are supported by governance structures that are both efficient and effective. This means maintaining a right-sized board, aligning committee structures with strategic goals and ensuring that board members bring a diversity of thought, experience and skill sets.

Boards that are too large, have complex committee structures or lack relevant expertise can slow decision-making and create operational drag. Conversely, efficient boards empower management to lead, while effective boards provide the strategic guidance and oversight needed to navigate uncertainty.

Healthcare organizations should regularly review their governance model to ensure it aligns with current needs and future direction. Efficiency allows for agility. Effectiveness ensures accountability.

2. Strong relationship between governance and management

Boards and management teams must operate as aligned partners. In the most successful organizations, this relationship is rooted in transparency, mutual respect and a shared commitment to the organization’s mission.

When communication is strong, boards can effectively fulfill their role in strategy and risk management without micromanaging operations. When communication breaks down, or when management acts independently without proper board engagement, strategic misalignment and risk exposure can follow.

Organizations benefit from clearly defined roles, ongoing dialogue and a culture that encourages open communication between governance and the C-suite. This alignment empowers timely, decisive action while avoiding surprises.

3. Management team stability

Consistency in leadership creates consistency in performance. Stable management teams that deliver results and adapt to change are a hallmark of high-performing healthcare organizations. Longevity in leadership helps sustain momentum, deepen institutional knowledge and maintain strategic continuity.

But stability without growth can lead to complacency. High-performing organizations don’t just retain leaders—they develop them. They also plan for the future, understanding that a lack of succession planning can lead to costly turnover, operational disruptions and strategic delays.

Board members and executives must proactively address succession and leadership development to ensure stability is a source of strength, not stagnation.

4. Functioning strategic plan

A strategic plan is only as valuable as its execution. Many organizations invest significant time and resources into building a comprehensive plan, only for it to sit idle. High-performing organizations ensure their plans are functioning, actively used, regularly reviewed and continuously refined.

These organizations treat the strategic plan as a living document. It is embedded in governance, discussed consistently at board meetings, tied to performance metrics and adapted as internal and external conditions evolve. Tools like scorecards and dashboards can help translate the plan into clear accountability and measurable progress.

Without a functional strategic plan, organizations risk drifting from their mission, reacting rather than leading, or spreading resources too thin across fragmented initiatives. A strategic plan should serve as the organization’s North Star, guiding decision-making, setting priorities and aligning resources across teams.

Technology is one area that high-performing organizations always include in their strategic planning. As innovation in areas such as artificial intelligence (AI), robotic process automation (RPA) and digital health tools accelerates, strategic plans must proactively address how these solutions will be deployed to improve patient care, streamline operations and reduce administrative burden. Defining a clear technology roadmap ensures that innovation is aligned with mission and value, not just implemented for its own sake.

These foundational strategies aren’t just best practices; they’re essential to long-term success. When organizations implement a clear vision, align leadership and activate their strategic plans, they’re better positioned to adapt to change, monitor outcomes and deliver consistent value across both clinical and operational functions.

5. Provider of choice in the market

In an increasingly competitive healthcare environment, organizations must earn their position as the provider of choice in their communities. This means delivering high-quality care, offering services that align with market demand, building brand recognition and fostering trust with patients, residents and the broader community.

Achieving this status requires more than strong clinical performance. Organizations must differentiate their services, deliver consistent value and invest strategically in marketing, branding, patient experience and community outreach.

Building brand loyalty and public trust is essential, not optional. Organizations that neglect their reputation risk losing market share and long-term relevance, which can ultimately threaten financial sustainability.

6. Positive workplace culture

Culture drives performance. Healthcare organizations thrive when they foster environments that attract and retain mission-driven, compassionate professionals. A positive workplace culture improves retention, reduces burnout and enhances both employee and patient and resident satisfaction.

This culture starts at the top and is reinforced by every leader across the organization. It includes transparent communication, recognition of staff contributions, support for well-being and a shared sense of purpose.

Organizations with toxic or indifferent cultures will struggle to compete for talent, maintain service quality or fulfill their mission. Investing in people should be a top priority for all organizations.

7. Consistent investment in physical plant

Facilities are more than buildings; they are reflections of an organization’s values and readiness. Successful healthcare providers consistently invest in their physical plant to maintain safety, functionality and aesthetic appeal.

This includes both maintaining existing infrastructure and planning for future needs. A 5- to 10-year rolling capital plan is essential to ensure funding is available for maintenance, upgrades or expansion.

Organizations that defer maintenance or ignore capital planning risk creating unsafe environments, losing patients and residents to competitors or incurring unexpected costs. Routine assessments and long-term planning will help avoid surprises.

8. Productive communication between finance and operation

Finance and operations must work hand in hand. In high-performing organizations, these teams collaborate on budgeting, forecasting, performance tracking and operational decision-making. This ensures that resources are used effectively and that financial insights inform real-time action.

When finance and operations are siloed, disconnects emerge, budgets aren’t followed, forecasts are off and decisions are made in a vacuum. Productive communication ensures alignment and enables a more agile, data-informed organization.

Shared dashboards, regular cross-functional meetings and mutual accountability are keys to success and help organizations stay aligned and responsive in a dynamic environment.

9. Proactively monitoring financial performance

Strong organizations don’t wait for month-end reports to spot trouble. They monitor key financial and operational indicators in real time, identify variances quickly and take corrective action early.

This requires robust financial reporting systems, clearly defined metrics and a culture that values data-driven decision-making. Dashboards, KPIs and real-time alerts empower teams to act timely and with confidence.

Organizations that rely on delayed or incomplete financial data risk falling behind and deteriorating margins. Being proactive protects margins, supports growth and ensures sustainability.

10. Appropriate level of patient and resident engagement

Healthcare organizations broadly:

Achieving meaningful patient engagement across the healthcare continuum is essential for improving health outcomes, enhancing satisfaction and ensuring timely and efficient care delivery. But fostering engagement is complex. The more actively patients and their families or caregivers participate in care and decision-making, the more likely they are to experience better results.

Clear, consistent and compassionate communication is foundational. High-performing organizations prioritize transparency and patient education, ensuring individuals understand their care plans, options and responsibilities. This supports shared decision-making, builds trust and empowers patients to take ownership of their health.

Technology can further support these efforts. Tools such as telehealth, mobile apps and patient portals improve access, convenience and transparency. At the same time, organizations must address barriers such as low health literacy and digital gaps. Leading organizations implement thoughtful communication strategies tailored to the diverse needs of their patient populations.

Senior services organizations specifically:

For senior services providers, resident engagement is equally critical and must be calibrated to fit the organization’s structure, culture and resident population. High-performing organizations strike the right balance: offering opportunities for resident input, maintaining open communication and being transparent about changes that impact daily life or services.

When resident engagement is too limited, trust erodes and satisfaction declines. When it is too broad or unmanaged, leadership decisions can be delayed or derailed. The key is finding an engagement model that fits your organization’s mission, population needs and governance structure.

Whether through advisory councils, town halls, surveys or direct outreach from leadership, strong organizations provide residents with meaningful ways to share feedback and stay informed. When residents feel heard and respected, organizations benefit from higher satisfaction, stronger mission alignment and a more resilient community culture.