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DaVita CEO Kent Thiry on Building a Signature Company Culture
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Community means that people care about each other and respect each other, shared DaVita HealthCare Partners CEO and Chairman Kent Thiry. "We believe we're a community first and a company second." During his View From The Top talk at Stanford GSB on Thursday, November 19, Thiry discussed building his company's signature culture and described his leadership approach. Read more takeaways from the talk on Twitter: http://stanford.io/1HbKXwi
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The Essence of Community
Kent Thiry, CEO of DaVita, emphasizes the importance of community within the workplace, stating that a true community means caring for and respecting one another. He believes that work should be central to one's life mission, as adults spend a significant portion of their waking hours at work. Thiry argues that emotional engagement with colleagues is crucial for a fulfilling work environment.
"so I thought we'd do two main sets of things I want to talk to you about your signature culture because I think it is so interesting to all of us uh and then at some point we'll pivot from that into t..."
Acting Like a Village
Thiry introduces the metaphor of a 'village' to describe DaVita's culture, where leadership is akin to being the mayor. He explains that decisions are made with the community's well-being in mind, focusing on creating a healthy environment that supports good schools and parks, rather than just economic outcomes. This approach raises the bar for expected behavior within the company.
"Community First and a company second and hopefully everybody has some communities that they're a part of in their life could be their family could be their book club could be their Church could be the..."
Building a Culture of Engagement
Thiry discusses the importance of rituals and call-and-response language in fostering a strong company culture. He notes that healthy communities, like military units and sports teams, utilize these practices to create a sense of belonging and engagement. Thiry believes that adopting these attributes can help DaVita stand out in the corporate world.
"community let's call it a village uh let's make it the mayor because that raises the bar of expected behavior for us and so we we take it very seriously when we make decisions we we consistantly use t..."
Measuring Success Through Metrics
Thiry highlights the importance of being metrics-oriented to assess the effectiveness of DaVita's community culture. He shares impressive clinical outcomes and employee retention rates compared to competitors, illustrating how a strong culture leads to superior results. Thiry emphasizes that engagement scores and anecdotal evidence from patients further validate the success of their community-focused approach.
"do that it was well first his teammates stand up what the heck uh we got some teammates here so so I knew I knew there were going to be a couple here but I didn't be a bunch uh and so this was a pleas..."
Cultural Integration in Acquisitions
Thiry reflects on the challenges of integrating DaVita's culture into acquired companies. He recounts how initial resistance from acquired teams led to a careful approach, allowing them to observe and adapt to DaVita's values over time. Thiry shares a pivotal moment when leaders from an acquired company embraced DaVita's culture, demonstrating the power of organic acceptance rather than forced adoption.
"so we we're very metric oriented and if you're if you're going to be serious about being a community you got to be objective um and we certainly not all of our neighborhoods are happy neighborhoods uh..."
Adapting Culture Internationally
Thiry discusses the complexities of exporting DaVita's corporate culture to international markets. He emphasizes that while core values may seem universal, the real challenge lies in ensuring that these values are practiced consistently across different cultures. Thiry stresses the importance of leading by example and creating an environment where everyone actively lives the company's values.
"most special one that human beings talked differently so you you you spoke a little bit about some Acquisitions and spreading culture through Acquisitions and the one that you refer to is one where uh..."
The Difference Between Belief and Practice
Thiry elaborates on the distinction between merely believing in core values and actively practicing them. He argues that true integrity and accountability require more than just avoiding violations; they demand proactive engagement and responsibility. This understanding is crucial for fostering a culture where values are genuinely lived out by all employees.
"case of this related acquisition uh that from a business point of view the first two years went very poorly tremendous organizational change we took out half the senior Executives so relatively trauma..."
The Challenge of Exporting Company Culture
Kent Thiry discusses the complexities of taking DaVita's corporate culture international. He emphasizes that while core values may seem universally accepted, the real challenge lies in practicing them consistently across different cultures. Thiry highlights the importance of integrity and accountability in leadership, illustrating that merely avoiding violations of core values is not enough; true leadership requires embodying these values in everyday actions.
"went out and told everybody Across America that we just you know I've sort of I'm taking this stuff more seriously now and in fact I just voted for it and has it taken rote I'd say you the math I use ..."
Adapting to Global Cultures
Thiry shares his experiences of adapting DaVita's culture in various international settings. He recounts initial skepticism from other CEOs about implementing his unique cultural practices abroad. However, after engaging with teams in India, he realized that human values resonate universally, leading to a more inclusive and effective corporate culture. He also addresses challenges like gender discrimination and the importance of addressing cultural differences in a respectful manner.
"ises not equal living it so if I go a month without telling a lie that is not living a life of Integrity living a life of Integrity is when you tell the truth when it hurts when it's embarrassing when..."
The Intersection of Culture and Strategy
In this segment, Thiry explores the relationship between company culture and strategic alignment. He argues that a healthy workplace culture is essential for achieving business goals and that the principles of community and accountability can be applied across various industries. Thiry emphasizes that fostering a supportive environment is not just beneficial for healthcare but can enhance performance in any sector.
"and and we've had uh uncomfortable moments in some of the cultures as we work through in particular for example because we won't stand for some of the gender discrimination that exists in a lot of oth..."
Tough Decisions as a CEO
Thiry reflects on the tough decisions he faces as CEO of DaVita, likening his role to that of a village mayor. He discusses the necessity of making difficult choices for the long-term sustainability of the company, even when they are unpopular. By communicating transparently about these decisions, he fosters understanding and acceptance among his team, reinforcing the importance of leadership in maintaining a healthy corporate culture.
"cohabitate very positively so if if if I was running an Enterprise with 3,000 Taco Bells uh not not medical clinics or a coal mine or any it is all about creating a differentially healthy environment ..."
Voting and Leadership Dynamics
In this segment, Thiry explains the democratic approach to decision-making at DaVita, where votes are held on significant issues. However, he retains the authority to override these votes when necessary, emphasizing the importance of informed leadership. He shares a specific instance where he chose to pursue a business acquisition against the team's consensus, illustrating the balance between collective input and executive decision-making in a thriving corporate culture.
"I'm just wondering how how much of this translates into your your day-to-day job how do how do you think about that and and and Liz if at some point the video is ready we can play it the uh oh okay it..."
Continuous Self-Reflection
Thiry talks about the significance of self-reflection and personal growth in leadership. He shares his methods for tracking his behavior and progress, illustrating how accountability can lead to improved leadership skills and better team dynamics.
"seriously try to do that unless we buy this thing even though right now it's little and broken and there's no Prof fora you can do that makes sense that we have to change a bunch of laws to do a lot o..."
Learning from Experience
Thiry discusses the importance of being an active learner throughout one's career. He emphasizes the need for leaders to continuously seek feedback and improve their management skills, drawing from both successes and failures.
"take uh as it's sort of self-evident that that that we all have bad stretches that we all have faults and and that if you can't create an environment where you talk about them each of our personal gro..."
The Transition from Consulting to Leadership
In this segment, Thiry reflects on his transition from a consulting role at Bain to becoming a CEO. He shares insights on the skills he gained and the challenges he faced, highlighting the importance of understanding one's strengths and weaknesses in pursuing a leadership path.
"manager leader um you've spoken about some of the ways you're you're getting feedback but but what are some of the other ways that you personally have worked on your own uh leadership and management s..."
Advice for Future Leaders
Thiry offers advice to students considering their career paths after business school. He discusses the importance of aligning one's skills with their career aspirations, particularly for those aiming for leadership roles, and the potential pitfalls of neglecting personal development.
"brother is is an alcoholic he's now 11 years sober and when he talks about the early years he said you know I had to win that battle against alcoholism every day and so for some of my behavior deficie..."
Community vs. Family in the Workplace
Thiry distinguishes between a company as a community versus a family. He addresses the complexities of firing a friend and the emotional challenges that come with leadership decisions, emphasizing the need for a realistic and supportive community structure within the organization.
"you did spend uh a good spell uh at Bane um there's there's a lot you learn in in in a gig like that um and I'm wondering about the transition from that to being CEO of of an operating company uh what..."
Intentionality in Company Culture
Thiry elaborates on the role of intentionality in building DaVita's culture. He shares insights on how he learned to approach performance reviews and terminations with the intent to be helpful, which transformed his leadership effectiveness.
"that's that's just more accurate we're serious about the metaphor if you're going to if it's going to if it's going to help you make decisions and help you talk about decisions and help people underst..."
Creating a Differentially Healthy Workplace
Thiry recounts his vision for DaVita as a differentially healthy workplace. He emphasizes the importance of creating an environment where employees feel valued and engaged, even amidst challenges like bankruptcy and legal issues.
"was still going in with my old tendency to want to prove I was right and and and take care of respond to any rebuttal um and so if you go into it with the right intention in your heart uh your head wi..."
The Power of Vision in Leadership
Thiry discusses how articulating a clear vision for DaVita helped rally employees during tough times. He reflects on the mixed reactions to his ambitious goals and the importance of demonstrating sincerity and commitment to the company's mission.
"Humane uh my name is Fernanda uh I would like to hear a little bit more about uh the intentional parts of the culture so in the beginning here you were saying uh what we just did that was not my inten..."
Engaging Employees in the Mission
Thiry shares how he engaged employees in DaVita's mission through regular meetings and open discussions. He emphasizes the need for accountability and collective effort in creating a healthy workplace culture.
"and there were and for reasons we can go into later perhaps it was a big big big family decision u i I did announce to the to the groups like this that that number one uh I I wanted to create a differ..."
Crossing the Bridge: Commitment to Culture
Thiry introduces the concept of 'crossing the bridge' as a metaphor for employee commitment to DaVita's culture. He explains how this initiative encourages accountability and shared responsibility for fostering a supportive work environment.
"such thing the leaders lead they don't wait for the right time to lead um second when I did that you know you use this room you know a third of the people thought it was just you manipulation you know..."
Building Connections Across the Organization
Thiry discusses the importance of connecting employees across different levels and locations within DaVita. He describes initiatives like town halls and inclusive meetings that foster a sense of community and shared purpose.
"fun uh it's not fun but it demonstrates intentionality and then and then you say and by the way I know most of the people in the room think this is not pragmatic or not sincere or naive or whatever an..."
The Role of Rituals in Company Culture
Thiry highlights the significance of rituals in reinforcing DaVita's culture. He shares how activities like personal credo writing and team-building exercises help employees align their personal values with the company's mission.
"phone as we still do every eight weeks for a voice of the village call just on one yesterday about 5,000 people across the world and in those days every call I'd say what is the incremental evidence s..."
Overcoming Skepticism in Leadership
Thiry reflects on the challenges of overcoming skepticism and cynicism among employees. He emphasizes the need for transparency and consistent actions to build trust and demonstrate commitment to DaVita's values.
"Healthcare in the world and so and so it was very explicit it was very much reinforced by actual actions actual intellectual investment actual project management operating follow through actual honest..."
The Challenges of a Strong Company Culture
Thiry addresses the potential disadvantages of having a strong company culture. He acknowledges that while it fosters accountability and connection, it also requires navigating uncomfortable conversations and delicate situations.
"people in my little Center I can't bring that alive and we we're open six days a week three shifts a day I can't even pull my team together much less convey it all and the videos help but they're not ..."
Navigating Cultural Strengths and Challenges
Thiry addresses the challenges of maintaining a strong company culture, emphasizing that while it can lead to uncomfortable conversations, it ultimately fosters growth and accountability. He encourages leaders to openly discuss their values, reinforcing the importance of transparency in leadership.
"one more back can a non-citizen call you KT yes it's a pleasure having you KT it depends what words are in front or after it uh can you speak a little bit more about the disadvantages to having that s..."
The Impact of Culture on Personal Growth
Thiry reflects on how DaVita's culture has positively influenced his personal life, making him a better father and human being. He shares anecdotes about the transformative power of the company's values and the significance of human behavior over business metrics.
"pretty strong reaction although I get the question I'm not trying to be dismissive uh and then in the second one yeah second one is uh particularly thought provoking giving my my son my little munchki..."
Balancing Professional and Personal Life
Thiry shares his journey of transitioning from a challenging career to leading DaVita, highlighting the importance of mindful leadership. He discusses the balance between professional ambitions and family life, emphasizing the value of leading a purposeful life.
"into uh a capitalistic Enterprise um so uh so I I feel it's it's well I'm as my son will tell you highly imperfect uh I think it's made me way more mindful at at at home uh and uh and it's been de dem..."
What Matters Most: A Personal Reflection
In a candid moment, Thiry reflects on what matters most in life, emphasizing relationships, mindfulness, and making a positive impact on the world. He encourages the audience to pursue their dreams and savor life's adventures, drawing from his own experiences.
"so when search firms would call I would say you know I'm call me in 6 months I'm I'm going to take some downtime I was within eight weeks of being done and then then they called for this company and s..."
Dreams and Life's Adventure
Thiry concludes with an inspiring message about the importance of pursuing dreams and appreciating life's journey. He shares a quote from author Colette, urging the audience to recognize the beauty of their lives and the adventures they encounter along the way.
"that um the uh you know at at Dita people sometimes say well what matters more you know the keeping the profits up and the stock price up or the village and I say as a mayor that's a false dichotomy i..."