Monkeys are the “leading cause of death” of new leaders.
Recent conversations with a few new(er) leaders about this common pitfall, prompted me to post this here. If you don’t have time (28 min) to watch this, then you probably really need to watch this. 😉
This time management concept saved my professional life.
After about 7 years in operations of skilled nursing facilities at The Ensign Group, a skilled nursing, seniors housing, home health & hospice, and radiology company, I spent 5 years there as the Chief Human Capital Officer. What an exciting time. Ensign’s “First Who, Then What” approach to growth meant we had to attract and train a lot of AITs into facility-level CEOs fast. Over those 5 years, I personally participated in the training of about 100 new leaders. Week long boot camps, case studies, online tests, conference calls, assignments, analysis, etc. I saw, up close and personal, what helped new leaders succeed … and fail.
Monkeys has a lot to do with both.
I’ve trained the topic to groups in the hundreds at association conferences to 1:1. And, I wrote about monkeys years ago here:
But, this is the video that gives a thorough explanation of Monkeys and that my colleagues and friends have found most useful to understand the time management concept from theory to practical application. While there are several healthcare operations and Ensign references, the principles are universal.
I hope it helps you or someone you know:
At the last NIC in Dallas, I caught up with an owner/operator of mid-market seniors housing. He has successfully made the transition from owning and operating hotels to assisted living and memory care. We talked a bit about his hotel business and I found an interesting corollary to how I look at investing in the assisted living space.
There have been a lot of concerns about oversupply in seniors housing. Newly developed and opened properties take market share from competition and both REITs (particularly those in RIDEA deals) and operators struggle, at least in the short-run, until occupancy stabilizes again. I get asked this question a lot, “how are you looking at the over-supply concern?” I like the question because it provides a forum for talking about the mid-market, B to B+ quality properties that is generally ignored by other REITs. The beauty of investing in the mid-market seniors housing segment is
- you avoid the new construction pressures as the vast majority of new supply is A to A+ quality with all the bells and whistles, and
- if you invest primarily in secondary markets you further protect yourself from new construction risk.
In addition, the demand for quality seniors housing at the $3,500/month vs. $6,500/month (depending on the market) price point is huge and growing. There’s a recent housing study by Harvard that highlights the growing supply/demand disparity for lower-income seniors housing. So, to invest in a Ritz Carlton or Holiday Inn? There’s certainly a market for both. My recovering hotel investor friend in Dallas shared his experience, “I’d convert the hotel into a Holiday Inn; put out some coffee, juice, and bagels in the morning and you’re good.” Luckily for investors and residents who choose to live there, there are quality operators who have figured out the recipe for providing a great place to live and work at an affordable price.