A leader’s focus sharpens when it comes to managing in an economic downturn. That has been the case across industries in the past 20 months. Today, I want to look specifically at the hospital industry, where I do most of my work.

The May/June issue of ACHE’s Journal of Healthcare Management leads off with “Managing in a Downturn: How do You Manage in a Global Financial Recession?” (Alan J. Goldberg and William D. Petasnick).

With plenty of insight, the article points to business-wise attentions and actions: robust financial forecasts, risk responses, liquidity sources, working capital processes. That’s to be expected.

What I really appreciated about the article was that it did not skim over what is most critical: communication, which means people, which means communication.

Citing Froedtert and Community Health System (Wisconsin), the authors make it clear.

Communication became critical. Managers and staff needed straight talk to maintain perspective on the challenges and the changing environment. Solid information and two-way communication were essential to keeping managers and staff informed, focused on the work at hand, and proactive about identifying and implementing solutions. Effective messaging required an independent, empowered leadership team….built around these core principles:

1. Focus on people and develop them.
2. Give your management team the latitude to make decisions.
3. Hold people accountable for results.
4. Never lose track of your core mission.
5. Do not let process get in the way of meeting your vision.

I’ve taken the liberty below of adding a comment to each of those valuable principles:

1. Focus on people and develop them. (Here’s the excellent opportunity to heighten employee engagement: in their development, in the hospital’s current situation, and in creative actions to boost performance.)
2. Give your management team the latitude to make decisions. (Managers are pivotal to an effective Employee Engagement Culture, which is likely pivotal to surviving the economic downturn. Leaders are responsible for clearly conveying the concepts and principles of the culture to their managers.)
3. Hold people accountable for results. (And for the ownership/engagement they take in achieving those results.}
4. Never lose track of your core mission. (Nor of the business culture, which is the sea on which the mission sails. The business culture that embraces full-force commitment to employee engagement guarantees a smoother voyage.)
5. Do not let process get in the way of meeting your vision. (Parallel to this is what I call the “Entrepreneurial Prado Rule”: 20% planning to 80% action. Now is not the time to worry too much about dotting i’s and crossing t’s.)