How an innovative approach to governance can fast-track operational efficiency
- By Philips
- March 03 2025
- 3 min read
Governance is a term that, while signifying good business practices, can often be perceived as a rigid and restrictive structure – a necessary evil rather than a positive gain. Instead of being a starting point for risk, worry and closed thinking, however, a modern, innovated governance model can be the vital first step in forging next-generation partnerships through the structuring of flexible, collaborative business practices and behaviors that make it possible to optimize operational performance.
At-a-glance:
- Governance is central to the formation of good working relationships and can pave the way for effective change management.
- Hospital-vendor partnerships can open up new ways of thinking about planning, purchasing and maintaining technology.
- An operationally intelligent governance model becomes a kind of procurement process that can help hospitals achieve their goals and stay within budget creatively.
A progressive governance structure
While the term ”governance” refers specifically to the structure and processes by which decision-making, accountability and control are managed, a modern approach can actually be much more wide-reaching and impactful. When embarking on healthcare partnerships, Philips Services and Solutions partners practice an operationally intelligent style of governance. We believe that our approach to governance empowers open conversations, impacts behaviors and establishes norms and values to ensure that everyone involved operates in an aligned, transparent, inclusive and mutually constructive way.
“Rather than closing down dialogue and setting procedures in stone, a progressive governance structure can lock in trust, flexibility and collaboration.” says Dawn Bruce, Service and Solutions Delivery Leader, Canada. “It becomes a win: win from the get-go.”
What is operationally intelligent and why is it important?
In a large modern health system made up of multiple departments, a diverse range of people forming internal and external teams and differing objectives, governance becomes important to achieving clinical and operational goals.
Rather than closing down dialogue and setting procedıres in stone, a progressive governance structure can lock in trust, flexibility and collaboration.
Dawn Bruce
Service and solutions delivery leader, Canada
Key advantages of an operationally intelligent governance structure
Amgad Moawad, solutions delivery manager, Philips Canada, shares an example: “In a contract, especially of the complexity and magnitude that we engage in with partners such as Mackenzie Health, governance is actually one of the glue factors in maintaining the relationship and ensuring that both parties get the best value out of these relationships. With the governance committee, you bring together the different areas of the hospital who were not involved in the actual creation and signing of the contract and start to try to align on interpretation by working in tandem.”
Embedding an operationally intelligent governance structure has multiple benefits, including:
Enabling high performance: With good governance comes informed implementation, planning, monitoring and measurement of operational performance. Underpinning the achievements of all high-performing organizations is a solid governance framework that supports people and the strategic goals of the organization. It helps everyone be the best that they can be.
Building trusted and transparent decision making: There is a mutual understanding of the goals and objectives of the partnership. All relevant stakeholders are involved in a decision-making process that connects people, processes and technology.
Creating flexibility to change: All organizations are challenged to respond quickly to external forces, changing paradigms, new technologies and emerging healthcare needs. In order to understand external threats and opportunities, organizations need cohesive and dependable leadership to navigate and improve the organization as the world changes. This ability to adapt to change is not something that occurs by accident. It’s enabled by good governance. The governance system you put in place will determine your course of action as change occurs.
Maintaining stakeholder confidence: No organization enjoys the blowback from an angry stakeholder or groups of stakeholders when they feel that an organization is ignoring their needs, bypassing them or failing to take their input. It damages trust and confidence and sets back the health provider’s operational goals. Happy stakeholders empower organizations to be at their best and, strategically, propel them forward.
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Disclaimer
Results are specific to the institution where they were obtained and may not reflect the results achievable at other institutions. Results in other cases may vary.