The CEO of a major hospital and health care system invited Art to join the Board of Directors. His business strategy was to develop a number of integrated facilities which would provide cradle to grave services. The plans for the construction of the first non-hospital; a skilled nursing facility and senior citizen's apartment complex were almost finished.
The engineering drawings and the architect's plans reflected the thoughts and ideas of a high-ranking executive at the hospital but a newly hired director of the continuing care division had serious concerns. The board began to wrestle with the issues he raised. The bottom line was that the changes required by the new man would mean additional architectural and engineering expenses, a different layout and overall, a more expensive project.
Art put in his two cents. “How are we going to hold the guy in charge accountable for the results if we don’t give him what he needs to make the project successful?”
What followed was a series of meetings, many in secret with less than the full board in attendance, and a lot of posturing and pontificating. This was Consoli’s baptism in the politics of the boardroom and how egos are nurtured in a non-profit business.
"Who makes the decisions? Barry (the CEO), the board? What's going on here?" He asked at every meeting, but the debates continued.
Consoli didn’t like the way things were happening, but the stakes were high and to him the decision was obvious. The question was how to make the right thing happen.
He applied the golden rule - those that have the gold make the rules. He went to the financial institution that was going to provide the financing and paved the way for a presentation by the new director.
He did a great job. The underwriters and the people who were going to raise the money from the investors asked a number of questions - all of which were answered logically and professionally. They went back to the CEO of the hospital system and explained the facts of financial life to him.
The business strategy has to address the issue of where the decison making power resides as well as setting the course for the business.
If you hire an artist to paint a picture, don’t guide her hand. If you do, what she paints won't be very pretty.