The Board’s Role in Leading Strategy and Reform Readiness

INFOCUS | Governance and Leadership in Aged Care

As we stand on the brink of transformative change in aged care, the role of governance and leadership has never been more critical. With the impending implementation of a new Aged Care Act in July 2025, aged care providers must be reform-ready. This article draws insights from McKinsey’s framework on defining your true north and driving an agenda for transformation, focusing on cost optimisation, growth, organisational effectiveness, and digital enablement.

I also delve into the risks associated with Boards micromanaging executive teams, particularly concerning clinical governance. Use this article to cross how you tracking and stimulate a strategy discussion.

Defining Your True North

The concept of ‘true north’ is about establishing a clear and unwavering strategic direction that guides decision-making at every level of the organisation. For aged care leaders, this means aligning their strategies with core values such as quality care, resident satisfaction, and operational sustainability. It’s fundamental that the CEO’s role is leading from the front and communicating this vision effectively to ensure all stakeholders (Managers, Staff, Older people and their families) are moving towards common goals and framed by organisational values.

The board’s role in setting strategy involves guiding the overall direction and long-term vision of the organisation. Board members collaborate to define strategic goals, assess potential risks and opportunities, and ensure that the company’s mission aligns with its operational plans. They provide oversight and support to the executive team, ensuring that strategic initiatives are effectively implemented and monitored. The Board can help management rise up out of the weeds by focusing on 4 key elements of driving and agenda of transformation.

Driving an Agenda for Transformation

1. Cost Optimisation:

Efficiency Overcuts: Cost optimisation should not be synonymous with cutting corners but rather improving efficiency through better resource allocation and eliminating waste.

StewartBrown, a leading accounting and consulting firm in the health and aged care sectors, emphasises three critical areas for improving cost management among residential and home care providers.

Firstly, effective staffing and workforce management is essential. This involves optimising staff efficiency and productivity through better rostering and the use of technology to streamline administrative tasks. Additionally, investing in staff training and retention programs can reduce turnover rates, thereby lowering recruitment and training expenses while maintaining high-quality care.

Secondly, operational processes and technology integration play a significant role in cost reduction. By refining operational workflows and eliminating inefficiencies, providers can enhance their service delivery. Implementing technologies such as electronic health records (EHR), telehealth services, and automated billing systems can further streamline operations and manage resources more effectively.

Lastly, robust financial management and reporting are crucial for sustainable cost control. Providers should establish strong budgeting and forecasting processes to better predict and manage financial performance. Regularly reviewing financial reports ( and having an external benchmarked financial health check) and implementing clear cost control measures can help identify and address areas of overspending promptly.

Investment in Technology: Leveraging technology can streamline operations and reduce costs. For example, implementing electronic health records (EHRs) can minimize paperwork and improve accuracy.

My top 4 tips for greatest impact include:

• Electronic Health Records (EHR):

EHR systems offer several benefits, including:

Streamlined documentation, allowing staff to focus more on direct care.

Reduced errors due to minimised manual data entry.

Improved coordination among care providers, ensuring that all stakeholders are aligned on a resident’s care plan.

• Telehealth and Telemedicine:

Telehealth offers several benefits to aged care services, including:

Access to Specialists: Residents can consult with specialists without the need for travel, reducing costs and time consumption.

Reduced Hospitalisations: Remote monitoring and consultations enable early detection and management of health issues, minimising emergency interventions and hospital admissions.

Convenience and Efficiency: Telehealth services can be scheduled flexibly, optimizing the use of healthcare professionals’ time and reducing downtime.

• Automated Medication Management Systems:

Enhanced Accuracy: Automated systems reduce the risk of medication errors, which can be costly both in terms of resident health and financial penalties.

Efficient Inventory Management: These systems help in tracking medication usage and inventory, ensuring timely reordering and reducing wastage.

Time Savings: Automation frees up associated staff from time-consuming medication administration tasks, allowing them to focus on other critical aspects of care.

• Wearable Health Monitoring Devices:

Continuous Monitoring: Wearable devices can continuously monitor vital signs and other health metrics, providing real-time data to caregivers.

Early Detection: These devices can alert staff to potential health issues before they become critical, allowing for timely interventions.

Data-Driven Decisions: The data collected can be used to make informed decisions about care plans and resource allocation, improving overall efficiency.

• AI informed Process Automation (PA):

Administrative Efficiency: PA can automate routine administrative tasks such as billing, scheduling, and compliance reporting, reducing the administrative burden on staff.

Cost Savings: By automating repetitive tasks, PA can significantly reduce labour costs and improve the accuracy and speed of administrative processes.

2. Growth:

Expanding Services: Identify areas where your organisation can expand its services to meet growing demand or address gaps in care.

For aged care providers looking to expand their service offerings, several key opportunities can help diversify revenue streams, meet emerging market demands, and improve the overall quality of care. Here are the top opportunities:

• Home Care Services: In-Home Support: With an increasing preference for aging in place, providing in-home support services such as personal care, housekeeping, and meal preparation can meet the growing demand.
• Nursing and Medical Care: Expanding to offer medical services like wound care, medication administration, and chronic disease management in the home setting can attract clients who need more intensive care but prefer to stay at home.
• Telehealth: Offering telehealth consultations can complement in-home services, providing clients with easy access to healthcare professionals without leaving their homes.
• Specialised Care Programs:

Dementia and Alzheimer’s Care: Developing specialised programs for residents with dementia or Alzheimer’s can address a critical need. This can include memory care units, specialised activities, and trained staff.

Palliative and End-of-Life Care: Expanding services to include comprehensive palliative and end-of-life care can meet the needs of residents and their families during the most challenging times. This can involve pain management, emotional support, and coordination with hospice services.

Rehabilitation Services: Offering physical, occupational, and speech therapy services can attract clients recovering from surgery, injury, or illness.

• Wellness and Lifestyle Programs:

Fitness and Exercise Programs: Implementing tailored fitness programs, including yoga, tai chi, and strength training, can promote physical health and well-being.

Social and Recreational Activities: Expanding social and recreational activities, such as arts and crafts, music therapy, and community outings, can enhance residents’ quality of life and mental health.

Nutrition and Dietary Services: Offering personalised meal planning and nutritional counselling can address dietary needs and preferences, contributing to better health outcomes.

• Technology-Enhanced Services:

Smart Home Integration: Implementing smart home technologies, such as automated lighting, security systems, and voice-activated assistants, can improve safety and convenience for residents.

Wearable Health Devices: Providing wearable health monitoring devices can enable continuous health tracking and early intervention, enhancing preventive care.

Virtual Reality (VR) Therapy: Introducing VR therapy for cognitive stimulation, relaxation, and pain management can offer innovative and engaging care options.

• Respite and Short-Term Care:

Respite Care: Offering short-term respite care can provide relief for family caregivers while ensuring their loved ones receive professional care in a safe environment.

Post-Acute Care: Developing post-acute care programs for individuals transitioning from hospital to home can help in recovery and reduce hospital readmissions.

• Integrated Health Services:

Partnerships with Healthcare Providers: Forming partnerships with hospitals, clinics, and specialists can provide integrated care solutions, enhancing continuity of care and expanding service offerings.

Behavioural Health Services: Adding mental health and counselling services can address the psychological and emotional needs of residents, promoting overall well-being.

Strategic Partnerships: Collaborate with other healthcare providers or community organisations to enhance service offerings without significant capital expenditure.

3. Organisational Effectiveness:

Leadership Development: Invest in training programs that build leadership capabilities at all levels. Boards lead and role model a culture of accountability. Are you fostering a culture where accountability is paramount? Clear roles and responsibilities ensure everyone knows what is expected of them.

Have you organised a third-party review to make sure you aren’t missing any blind spots?

4.Digital Enablement:

Adopt Emerging Technologies: From telehealth to AI-driven analytics, embracing digital tools can significantly enhance patient outcomes and operational efficiency.

Data-Driven Decisions: Utilise data analytics to inform strategic decisions and predict future trends.

Boards that don’t even have this on their radar run the risk that the organisation they govern are on a short landing zone for irrelevance and failure.

• Risks of Micromanagement:

While boards need to set strategic direction and oversee progress, diving into the minutiae can be counterproductive and can lead to-

Stifling Innovation: Micromanagement can stifle creativity and innovation among executive teams who may feel constrained by excessive oversight.

Dilution of Focus: When boards get bogged down in details, they lose sight of broader strategic objectives.

Executive Disempowerment: Trusting executives to execute strategies fosters a sense of ownership and accountability that micromanagement undermines.

• Clinical Governance Considerations:

Clinical governance remains a cornerstone of aged care reform under the new Aged Care Act:

Boards must ensure robust frameworks are in place for clinical governance without overstepping into day-to-day operations. Establish clear metrics for quality care that executives can report against regularly. Encourage a culture where continuous improvement in clinical practices is prioritised, reducing foreseeable risks to Older people.

• Preparing for 2025:

With a no ‘take-off’ zone post-July 2025 deadline: Start early by reviewing existing policies against anticipated legislative requirements. Engage stakeholders—staff, residents, and families—in discussions about upcoming changes to foster buy-in. Develop comprehensive training programs to ensure all team members are prepared for new regulatory environments.

As aged care leaders navigate these transformative times, understanding the board’s role in setting strategy is paramount.

By focusing on cost optimisation, growth opportunities, organisational effectiveness, and digital enablement while avoiding the pitfalls of micromanagement—particularly in clinical governance—leaders can steer their organisations toward sustainable success amidst reform readiness for 2025.

How do we help Residential and Home Care Providers?

• Andrea Payne leads AnchorPolicy for your complete solutions of Policy and processes
• Irene Stein leads clinical governance reviews including building your enterprise-specific clinical governance framework
• Compliance coaching and remediation services
• Carla Beheram leads our 3rd line risk and assurance reviews- be NEW standards ready
• Leadership development and creating a high-performing team culture
• Coaching and mentoring – CEOs and executives
• Fast and agile change management – we help with change management programs and project management
• Claire Ward & Sarina Rodgers provide bespoke additional services development for revenue diversification
• Payal Kapoor conducts Financial Health checks and assists providers with grant applications, Higher RAD applications and financial operational reviews

For more information about our Leadership Team, visit our team page Here.

About the Author

Cynthia Payne

Cynthia Payne has more than 30 years of executive leadership experience and over 20 years as a Director in both NFP and FP boards. Cynthia founded Anchor Excellence in 2018 and in 6 short years has impacted over 45% of the Australian aged care market via its programs, solutions and education including the home for SAGE Executive Study Tours

Passionate about leaders, supporting and enabling them, as defined by consumers’ lived experience, Cynthia and the twenty-strong AE team together have a formidable level of expertise and commitment to the entire aged care ecosystem- residential, homecare, NDIS and retirement living.

Cynthia holds an MBA, Bachelor of Applied Science in Nursing, Cert IV qualified Yoga teacher (800HrRYT), Certified Practitioner of Balanced Scorecard, Certified Aged Care Board Advisory Chair and Certified Practitioner with Team Management Systems – TMP, Quotient and LLP.

She is a Member of AICD, a Fellow of the Governance Institute Australia and long-term member of the Australian College of Nursing and a Fellow of the Manager and Leaders Institute. She is current INED for listed entity Painchek (2022-Current),  Board Advisor to Total Construction (2019- current), Director of Commonwealth Study Conferences (Australia) and (Association of Commonwealth Leadership Conferences),  Director of the Mind Connections Foundation and past INED for the National Heart Foundation (2017-2021).

Cynthia also volunteers as an Independent Review Panel member for Business Excellence Australia.

cynthiapayne@anchorexcellence.com

www.anchorexcellence.com