Dr. V of Aravind Eye Hospital: A 'Level 5' Leader
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Case Code: BSTR100 Case Length: 16 Pages Period: 1997 - 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.400 Organization: Aravind Eye Hospital Industry: Service Countries : India Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Inspiring Standards With Intense Will
An incident at Aravind makes clear the intense will of Dr. V. One day, Usha, a surgeon who held a record at Aravind for the number of surgeries in a day (155), returned from a village camp running a fever of 102 degree Fahrenheit and checked herself into the hospital. Dr. V arrived at the hospital, as a part of his duty, and noticed her in the hospital. "What are you doing here?" he asked. "I am sick", she replied. Dr V said, "My fever is 104. How high is yours?" She had no option but to get out of bed and go to work. The same will made him one of the most respected eye surgeons in the world in spite of his physical limitations. It was this intense will that led him to mortgage his house to set up Aravind hospital, in pursuit of his dream. C K Prahalad, a leading management thinker, has studied Aravind's operations over the years. He observed that Aravind generated a 200 percent return on capital employed. "We have a good medicine school at the University of Michigan, and they are amazed by what they saw at Aravind...
Compelling Humility
Dr. V was humble and modest - distinguishing characteristics of Level 5 leaders (the characteristics and operating style of Level 5 leader are given in Exhibit VIII). Commenting on the success of Aravind, Dr. V once said, "Now, people call Aravind a market-driving entity, as opposed to the one being driven by market. We had not known those management strategies. We are transparent, do not exaggerate anything to our patients and are truthful and sympathetic to them. We have nothing more than a helping attitude." Like a true Level 5 leader when he could not ascribe his success to someone other than himself, he attributed it to divine or some higher consciousness. "We feel that the higher consciousness is trying gradually to give us a system. We are all aware of the parts of the human body as they work. We take in food; we like the taste of it. Part of it is absorbed here, part of it there. But we are not aware of it. The higher consciousness works in the same way. Slowly, your system is built around it, but not according to human nature...
The Hedgehog Concept
Level 5 leaders identify the area where their companies can be the best in the world. They also identify the areas where they cannot be the best. According to Jim Collins an organization that masters "The Hedgehog Concept" understands what it is best at in the world, how its economics work best, and what inspires its people continuously. Dr V was very clear as to where Aravind has to operate, and where it could be the best. In a meeting with social entrepreneurs in California, Dr. V once said that he would not employ his business model to distribute hearing aids. He explained that restoring sight was his only priority. Over a period of 26 years he understood how Aravind's economics work the best. He was also sure what motivated his people. Young nurses who hailed from villages were deeply committed to Dr V's ideals and vision. Once an industrialist from Delhi visited Aravind and requested Dr V, "I need to build a hospital, and I'm very much impressed with this one. Could you come to Delhi and start a hospital for me?" Dr V replied, "You have all the money you need. It shouldn't be hard for you to put up a hospital in Delhi." "No," the industrialist said, "I want a hospital with the Aravind culture...
Technology Accelerators
The success of Aravind's business model depended on numbers. To serve more patients Dr. V educated his customer-patients. In doing so, he took the help of technology. He deployed technology to serve people who were not able come to hospital. In 2003, Aravind was utilizing 30 Internet kiosks started by n-logue in remote villages of Tamilnadu. These kiosks were started in thatched huts. Young local women were trained to run these kiosks. In each case, the person operating the kiosks took pictures of patient's eyes using a webcam (Refer to Exhibit IX) and sent them to the doctor along with a filled-in online questionnaire (symptoms of patient were recorded in this questionnaire). The doctor from Aravind hospital received it through e-mail instantaneously and interacted with the patient through an online chat (the person running kiosk acts as a facilitator) and gave him an appointment at hospital the following week, if he felt that physical examination was necessary...
Conclusion
Dr. V was a blend of intense professional will and compelling modesty. In setting up the hospital and driving for economies of scale, he demonstrated strong will. In attributing his success as a founder of Aravind eye care system to some higher consciousness, he epitomized humility. Like a true Level 5 leader, he attempted to leverage technology to serve his customers better. By sticking to his strength - offering high quality eye care at affordable price, he reminds us of other Level 5 leaders Jim Collins talked about in "Good to Great..."
Exhibits
Exhibit I: Location of Aravind Hospitals
Exhibit II: Dr V's Major Research, Clinical and Management Accomplishments
Exhibit III: Awards and Honors Won by Dr V
Exhibit IV: Dr V's Contributions at Government Erskine Hospital
Exhibit V: Aravind's Mission
Exhibit VI: Aravind Eye Care System: Speciality Centres
Exhibit VII(A): Each Day At Aravind Eye Hospitals
Exhibit VII(B): Statistics
Exhibit VIII: Characteristics of Level 5 Leaders
Exhibit IX: A 70-Year-Old Man in Pathinettangudi, Mailing a Photograph of His Eyes to the Aravind Eye Hospital, Madurai, Through Webcam for Consultation
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