Management of Organizational Behavior | Paul Hersey

Summary of: Management of Organizational Behavior: Utilizing Human Resources
By: Paul Hersey


In the book ‘Management of Organizational Behavior: Utilizing Human Resources,’ author Paul Hersey delves into the world of Mayo Clinic, the first nonprofit medical group practice and an institution renowned for its exceptional quality health care. Through its continued growth, Mayo Clinic has adhered to three fundamental principles: prioritizing patient interests, grouping talent to form a unified workforce, and providing care efficiently. This summary takes you on a journey through Mayo Clinic’s patient-first approach, teamwork culture, structure and governance, and its strategy of ‘destination medicine,’ which ensures rapid and efficient delivery of clinical care. Discover how Mayo Clinic’s philosophies and practices can be applied in your own service organization to achieve success and distinction.

The Mayo Clinic: A Medical Mecca

The Mayo Clinic is a nonprofit medical group practice that is highly-regarded by patients and their families as a medical mecca. Dr. William Worrall Mayo founded the clinic in Rochester, Minnesota, in the late 1800s, and his sons continued his vision and values. By the 1880s, the practice was known for quality care, and by 1914, it took the name the Mayo Clinic. Word-of-mouth marketing was so effective that it didn’t need marketing staff until 1986. The clinic grew and expanded by absorbing other hospitals and now has campuses in Arizona and Florida that function as a single organization. In 2007, it had over 520,000 patient registrations and generated $7.3 billion in revenue. The clinic’s success is attributed to its focus on execution and delivering the promised performance.

Mayo Clinic: More Than Medical Care

Mayo Clinic’s three-shield system prioritizes patient care, research, and medical education. The clinic’s robust research program, with over 7,000 ongoing projects, complements its focus on clinical medicine. With a notable medical school, Mayo physicians remain actively involved in advancing medical knowledge.

Service Organizations and Mayo Clinic

Mayo Clinic’s service structure is highly transferable to service businesses despite the differences. In the book “Simply Better,” the author highlights that the focus should not be on the best structure, but the most effective one to execute a strategy. Service businesses like yours and Mayo Clinic have elements in common such as intangible services, skill and labor-intensive work, client representation by staff, urgent service needs, uneven demand, flexible service provision, and resource deployment. Coordinating interdependent elements is also crucial in meeting varied customer needs.

Mayo Clinic’s Enduring Service Culture

Mayo Clinic’s excellence in patient care is built on a culture that combines engineering and artistry. This enduring service culture is sustained by mutual respect, teamwork, trust, listening, inclusion, teammate contribution, and fair treatment. Mayo merges this culture with its quality strategy, efficient management, and thoughtful systems to provide top services with an emphasis on patients’ needs. Its reputation is a result of the excellence of its clinical tests and analysis and its organizational efficiency.

Mayo Clinic’s Mission-Driven Approach

Mayo Clinic’s culture of collaboration and mission-driven approach has led to its success in providing medical care efficiently while prioritizing patient interests. The company groups talent to create a “union of forces” and hires based on values and potential growth rather than just current qualifications, leading to a high retention rate for quality staff members. This approach distinguishes Mayo Clinic and has helped its employees develop knowledge and skills.

The Patient-First Approach

Mayo Clinic’s primary value is prioritizing patients’ needs, which permeates through every aspect of their operations and success. This core value is deeply ingrained culturally, and any staff member has the authority to consult with someone higher up the chain of command to address a patient’s needs. Discretionary effort is a part of their work culture as Mayo staffers volunteer to make patients comfortable and go the extra mile. Furthermore, new clinics joining the Mayo Health System adopt these patient-first core values.

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