insights into leadership with jim staten

Cultural Transformation Tools International ConferenceSeptember 28, 2016 – September 30, 2016

Toronto, Canada

Values-Driven Leadership in Business and Society

Insights into Leadership

James StatenSenior Vice President, Finance and Chief Financial Officer

University of Southern California

Day Two – Practical Examples & Application ModelsSeptember 29, 2016

9:55 a.m. – 10:40 a.m.

Insights Into Leadership

Core Values

Time & Money

Vision

Leading From The Heart

3


Core Value Stories From TwoBusiness Sectors

4

Health Care

Higher Education


5


ValuesIntegrity

Patient-CenteredRespectAccountabilityCompassion

Doing the right thingPutting patients and families firstValuing all peopleBeing responsible and taking actionBeing empathetic

Values

6

VISIONMISSIONVALUES

1. 20,000

2. $4 B

3. $160 M

4. 2,000/200

5. Epic 7


8

My USC Journey Thus Far . . .

Sign USC Employment Contract, October 2015

Health System Financial Turnaround, June 30, 2016

USC Start Date, January 19, 2016

Moody’s USC Credit Opinion, August 9, 2016

USC Achieves Record Low Interest Rate on $723M Bond Refinancing, August 15, 2016

Workday Kick-off, September 22, 2016


9

Vision: To transform education in a rapidly changing world by creating scholarship with consequence and connecting brilliant minds equipped to explore and lead new frontiers of human progress.

Mission: The development of human beings and society as a whole through the cultivation and enrichment of the human mind, body, and spirit. The principal means by which our mission is accomplished are teaching, research, artistic creation, professional practice and selected forms of public service.

Values: Commitment to Service Search for the Truth Respect Diversity Informed Risk-Taking Integrity Team Spirit

These values define our community, sustain a sense of cohesiveness, and connect us to our past and to our future.

VISION | MISSION | VALUES


10

Fertitta Hall Ribbon CuttingSeptember 7, 2016


The 1% Rule

11

99%

1%


USC President, C.L. Max Nikias, Spotlights Diversity in Annual Address

“It is by embracing every culture, my fellow colleagues, every religious view, every individual, that we find ourselves.”

– C. L. Max Nikias, February 11, 2016 10


USC Health System Turnaround Twelve Month Year-To-Date FY2016

13

1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

$1.3B$1.4B

$1.5B

Total Revenue($ in millions)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

-

20

40

60

80

100

120

$20M$39M

$110M

1.5%

2.8%

7.3%

EBITDA before Physician Recruitment

EBIDA before Physician Recruitment EBIDA Margin

($ in millions)

2015 Actual FY 2016 Budget FY 2016 Actual

(80)

(70)

(60)

(50)

(40)

(30)

(20)

(10)

-

10

20

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

($67M)

($50M)

$10M

-5.1%-3.6%

0.7%

Bottom Line Operating Results

Bottom Line Operating Results Bottom Line Margin

($ in millions)



15%Revenue Growth

Rate


14

Credit Strengths:

• Excellent strategic position• Exceptional fundraising• Large research activity• Strong governance and management • Expanded senior management team• Close integration of the university and healthcare operations• Consistently positive operations and improved healthcare operations• Close integration of the university and healthcare operations

9 August 2016

Outlook StableAa1


15

Lowest Interest Rate for Bond Yields of 20–30 Year Maturities

3.028%

MorganStanleyBuildingNear TimesSquare inNYCAug. 2016


How a person or organization spends their Time And Money speaks to what is important to them

16

Through the CFO Lens


Until world business leaders become aware that they are the problem, they can’t be part

of the solutions that are so needed today

Present and Open to the possibilities that might be revealed in the moment.

Release that which doesn’t

serve us

Aware of our reliance on past successes and expectation of what the future

should hold

17


Vision

18


New world business leaders will increasingly strive to build bridges (in their work) improving the health and wellbeing of those they serve guided by

W I E

S

N

D

U

The Seven DirectionsAllies

19


The Three Piles

20


1. Financially Conservative

2. Strong Shared Values

3. Peripheral Vision

4. Experimental Mindset

Characteristics of Long-Lived Organizations

21


The 3 “D”s1. Design

2. Delegate

3. Disappear22


Q & A

23

insights into leadership with jim staten

Presentations & Public Speaking