HAVING MY5ay
Management and leadership
differences require levelheadedness
by Joe Colonna
\Miat would a materials
manager have to do to be
perceived as an effective
leader?
First and foremost,
they must have an infec-
tious passion for what
they are doing. Second,
they must be willing to
commit the time and en-
ergy to study transition theoiy well enough to
preach, teach and live it. Third, they must un-
derstiind themselves well enough to know their
shortcomings. Fourth, they mu.st transfoim
their weaknesses into strengths; personally or
by utilizing the resources of employees or
peers.
For a variety (jf reasons, the healthcaiT in-
dustry perceives materials managers as cus-
tomer service personnel who manage "things"
and "people" for the purpose of saUsfying the
desires and wishes of department managers,
physicians and executives.
It is also important to distinguish between
leadership and management. In his book,
WhMt Leaden Really Do,]ohn P. Kotter writes,
"I.^adership is different from management,
and the primary force behind successful
change of any significance is the former, not
the latter." In another of his books. Leading
Change, he explains that leadership drives
change while management controls it. In that
book, he also added "Management is a set of
processes that can keep a complicated system
of people and technology running smoothly.
The most important aspects of management
include planning, budgeting, organizing, staff-
ing, controlling and problem solving."
While you may fit that description or agree
vou will strive to achieve the objective, it is
critical to fully understand the true meaning
and magnitude of what leadership really is.
Kotter added, "Leadership is a set of processes
that creates organizations in the first place or
adapts them to significantly changing circum-
stances. Leadership defines what the future
looks like, aligns people with that vision, and
inspires them to make it happen despite the
obstacles."
Until now you may have been recognized
as a great manager of materials and even
66 October 2D04 • HLUTHCARE RirchasingNEWS.• www.hpnonlinexom
people. Based on Kotter's definition, are you
recognized as a leader^ Keep in mind; Mr.
Kotter's books make the point that there aie
many types and styles of leadership. You have
the opportunity to develop our own. To get
there, however, you need a map.
In thejim Collins book, ^'Good to Great,"he
WTites about five levels of leadership with Level
Five being the most effective. Rased on an in-
formal survey I conducted with industry ex-
perts, the responses indicated a materials
manager must be at least a Ixvel Three Leader
to be considered effective. According to
Collins, a Level Three Leader is a "competent
"Leadership coinplhnetits
mauagemetit; it doesn't
replace it."
- John P. Kotter
manager" who "organizes people and re-
sources toward the effective and efficient pur-
suit of predetermined objectives." Odds are
that, if you are at Level Three, you will be
viewed as being competent and proficient in
the role tradiUonally associated with a materi-
als manager.
But compare this to the Collins Level Four
Leader who is an "effective leader" that "cata-
lyzes commitment to and vigorou.s pursuit of
a clear and compelling vision, stimulating
higher performance standards" and you see
the room for advancement. Or you can com-
pare that level of effectiveness with the Level
Five Executive who "builds enduring great-
ness through a paradoxical blend of personal
humility and professional will."
Clearly, while you can be an efi'ective and
highly I egarded materials manager when y ou
achieve Level Three status, you will still be
perceived as a manager and, by the Collins
definifion, may not be recognized as a leader
in your organization.
Effective leaders facilitate more then they
dictate change. They communicate the vision
of the organization, their goals and objectives
for how to contribute to that vision and rally
others to participate or surpass that objective.
Facilitation and communication should be-
come extremely important to you because these
skills are two of the drivers for your success.
Frankly, until now most materials manage-
ment departments have rarely been recognized
for their potential. In fact, they have been pre-
vented from being allow ed (as the commercial
says) "to become all that they can be." Since
the position was introduced into healthcare
more than twenty years ago, materials manag-
ers have struggled to receive the authority to
exert more control over greater portions of the
non-labor expenditures of their org:mization.
Therein lies the crux of (he problem.
Healthcare has evolved in such a way that de-
partment majiagers and physicians actually
resist and resent anyone who tries to exercise
control or authority over their prerogatives.
Ix)ok again at some of the words used to de-
scribe Level Four and Level Five leaders; "cata-
lyzes commitment," "clear and compelling
vision," "personal humility and professional
will." These are not words that describe the ste-
reotypical materials manager who may sit at
the bar while attending an AHRMM meeting
and brag that their exam gloves are one dollar
per box cheaper than their GPO contract or
want to compare "cost plus" numbers. This
does not describe the materials manager that
considers the O.R. supervisor "she who must
be obeyed." These words would not describe
others in the organization ;is being adversar-
ies.
They would, however, describe someone
who recognized the value of establishing win-
win processes, foctised on outcomes rather than
control (not who did something but uhv, what
and how the result was achieved) and spent
ample time recognizing others for their contri-
butions toward meeting or exceeding the ex-
pectations of the orgiinization. In essence, these
words would be used to describe a "graduate"
manager; one w ho made the transition to lead-
ership. Ai^e you ready to follow the patli towjird
leadership?
Careful study of the principles of effective
team building clearly indicates leaders focus on
outcomes, not on being a chairperson of com-
mittees. For example, what if you perceived a
potential opportunity for significant cost reduc- nize the attributes that differentiate between
tion in the laboratory? You might bring to- these skills (see the sample compaiisons pro-
LEADER MANAGER
gether a team consisting of yourself, the lab vided). Second is the fact that both good lead- Seek experts Tries to be expert
director, a lead tech. a value analysis coordi- ers and good managers are needed for an
nator and a representative from finance. In a organization to be successful. Therefore, even Passion Excitement
leadership role, yourfirsttask might be to help if your skills do not currently place you in the
the team to identif^' if a real opportunity ex category of being a Level Three leader, your
Empowers Directs
isted and then how to take ftill advantage of it. role in the organization can still be a major one.
However, to be an effective leader, it would Accordingly, by merely recognizing the actions
be wise to plan ever\' aspect of the meeting; necessary to be perceived as an effective leader, Is trusted Is respected
including how vou will facilitate the process while functioning as an accomplished man-
for the benefit of the laboratory. Planning ager, you can still be able to work toward the Identifies the Drives the change
should focus on trying to build a process that goal of enhancing your leadership ability. need to change
will cultivate a relationship that can foster even Then, with study and practice displaying the
bigger opportunities in the future. How? By attributes of a leadei-, the way you are perceived Guides Offers opinions
getting the people involved in designing the throughout the organization can be enhanced.
process, to own it, to recognize its value. A After all, it is your peers who will decide Motivates and Controls and
proverb that reminds me of this valuable les- whether or not you are viewed as a leader! inspires solves prohlems
son is, "Tell me, I forget. Show me, I remem- Do not listen to comments that leaders are
ber. Involve me, I understand." Besides the bom and not made. Your actions will define leads change Prevents
need to involve "users" in the process, a key whether or not you get people to cooperate regression
to success will be explaining your role as fa- witli you. Having a positive impact on the or-
cilitator and the desire to insure credit for anyganization through credibility and respect Focuses on Focuses on
accomplishment will be given to the team, should be your objective, not whether or not strategy structure
L'nfoi tunatelv, some materials managers, in you aie refetred to as a manager or a leader.
an effort to bring more attention to their de- The following are several wavs vou can build Estahlishes Creates
partment and/or its contributions, often tout upon your levels of credibility and respect: direction explanations
the savings that "they" find to their CFO or •Leam facilitation skills. These skills will ap-
CEO. But would that decision be considered ply not only to meetings but in your day to day
one that describes leadership? In Patrick interactions with others, FISH, Stephen Lundin, Hyperion, New
I^ncioni's book, TheFiveDysfiimiiomofa Teain, •Team building is cnicial to your success. En- York, NY, 2000
he points out that, "Team leaders mtist be self- sure that you "walk the talk" by building a 77te five Dysfunctions of a learn, Patrick M
less and objective, and reserve rewards and strong, effective "home" team first, Lencioni, Jossey-Bass, San Erancisco, CA,
recognition for those who make real contribu- •I.^am the true meaning of WIN/WIN; not
tions to the achievement of group goals.'' WIN/win (a need which is seen too often in What Leaders Really Do, John P. Kotter,
Think about it this way, how much more the materials management/supply chain pro- Harvai d Business School Press, Boston, MA,
effective would you be with a commitment to fession),
participate with your endeavors by the labo- •Identify your strengths and weaknesses. Leading Change,]ohr\ P. Kotter, Harvard
ratory director and their staff? Obviously, it Only after you understand both, can you make Business School Press, Boston, MA, lfH)6
would be in your best interest to focus beyond better team building decisions.
Joe Colonna Is the president and CEO of
one project and attempt to develop an ongo- •Recognize the efforts of vour employees and
Strategic Initiatives in Healthcare, a Jack-
ing process for stimulating other opportunities your associates. Promote their accomplish-
son, NJ-based consulting firm specializing
to reduce expenses. When other department ments to others - this will be returned to you
in expense management strategies. Previ-
managers see that the laboratory is being rec- 10 times over. WK
ously, he served as one of the top execu-
ognized for their efforts, wouldn't they be more
tives at a leading regional GPO that now is
likely to welcome your involvement? Here are some suggested reading materials to help
a memher of MedAssets. Colonna also is a
There are two important factors to consider get you started:
member of Healthcare Purchasing News'
regarding the transformation from leadership Good to Great. Jim Collins, Harper Collins, editorial advisory board.
to management. First is the ability to recog- New York, NY, 2001

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