"Leading Towards an Ethical Corporate Culture"

Michael J. Duncan Executive Director

Columbia Presbyterian Physicians

Michael Duncan's management philosophy is "love people, expect results." In other words, he focuses on developing the people and treating them with respect while maintaining an organizational focus on producing results. He enjoys the process of transforming the corporate culture to make a positive work environment while producing better organizational results.

"I particularly like going into a company that's in chaos," Duncan said. Shortly after joining one organization, Duncan was asked to visit a supplier's representative and inform them that they were unable to make good on a $500,000 debt. "I want you to go tell them that we're not going to pay it," Duncan was told by his supervisor. In this instance, Duncan felt that he had entered into a culture that did not encourage ethical behavior. Instead of simply backing out of the deal Duncan offered the supplier the chance to enter a long-term business relationship if they'd be willing to grant an extension on the debt. He was successful.

"As leaders, we must have the courage to speak in terms of values," Duncan said. He insists that nobody should ever ask an employee to do something unethical to accomplish a goal that's been set for them. He also spoke about how unreasonable expectations can lead to unethical behavior, and that the corporate culture should always lead employees to feel that they would not be punished for choosing ethical behavior over an easy out. "We'll all know we can sleep better at night because we did the right thing," he said.

Duncan suggests developing a clearly defined set of values - something that can be written down and referenced. He offered some fundamental values as a framework:

• Integrity - We are straightforward and adhere to the facts. We express ourselves clearly and correctly and live up to our word.
• Respect for People - We treat people with respect.
• Personal Accountability - We know our responsibilities and do not blame others or seek excuses. We recognize achievement and address marginal performance.
• Teamwork - The word "we" refers to everyone required to serve the patient (customer, client, etc). We have an atmosphere of openness, honesty, and trust.
• Innovation - We change anything to improve our service.
• Focus - We have a sense of urgency in pursuit of our mission. We will not waste our time or energy on unproductive attitudes or activities. "Focus is a great word for 'no whining,'" Duncan said.

Duncan emphasized the importance of allowing employees to perform to their strengths. Low-performing individuals may do better if they are moved into a position that better suits their skill set. At the same time, however, some low-performers cannot change. "We can't teach broccoli to sing," Duncan said. "Talent has to be there."

One of Duncan's major talking points is the conflict between a business's strategic plan and its culture plan. "If your culture clashes with your strategy, your culture is going to win," he said. He stressed that culture can and should be managed in order to achieve success, and he outlined the core tactics for altering a corporate culture.

Duncan's simple guiding principle is that if an organization wants to change the way people behave, it first has to change the way they think. To accomplish that, the organization has to change what its people see, hear, and experience.

To complete the process of culture change, leaders must embrace all levels of communication within the organization to promote it. Newsletters, employee events, Web sites, and employee orientation sessions can all be used to spread the message. Feedback is also key. By keeping the lines of communication flowing both ways, both leaders and subordinates can identify conflicts between strategy and culture before they cause an insurmountable rift. Leaders should not be afraid to speak in terms of values when describing proper behavior.

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Michael Duncan graduated from the U.S. Naval Academy in 1978. Duncan's naval career included a tour as a Nuclear Engineer on a fast attack submarine followed by a stint as a tactics instructor for senior officers. In the late 80's he entered the developing field of managed health care. After service in both operations and marking roles, Duncan was asked to lead his first HMO in 1989.

Duncan was active in the health care reform movement of the early 1990's. Since 1995 Duncan has served as CEO or executive director of three large academic physician groups. He is currently executive director of Columbia Presbyterian Physicians, a 1200 physician group at Columbia University. Duncan's health care career has focused on leading HMO's, physician groups, and a hospital through turbulent times.