Case Study

Vancouver Coastal Health

Industry: Healthcare

Vancouver Coastal Health is a major health system serving 1.25 million people across a hugely diverse region. Footprint: 120+ care locations—hospitals, urgent/primary care centres, and community sites—span dense cities and remote coastal communities. Geograhy: 58,560 km² service area covering 12 municipalities, 4 regional districts, and numerous Indigenous communities, creating high coordination demands. Workforce: 30,000 staff and medical staff, plus 3,000 volunteers and an active research community. Labour environment: multi-union bargaining (nurses, health-science professionals, facilities, community bargaining associations). Scale of accountability: a multi-billion-dollar organization.

Intro

From bottom-quartile to mid-quartile Organizational Health Index in under two years – delivering safer, more consistent care and significantly improving employee engagement and leadership capabilities.

In under 24 months, VCH moved from bottom-quartile to mid-quartile organizational health and performance. The result was safer, more consistent care, steadier handoffs and escalations, stronger leadership effectiveness and engagement, and more uniform performance across regions and unions.

Healthcare

Details

Bridging Strategy and Care Quality

Challenge

Vancouver Coastal Health’s core challenge wasn’t a lack of strategy, it was converting strategy into consistent behavior across a vast, union-dense, geographically dispersed system in ways that reliably improved patient outcomes and quality of care. With 30 000 employees across 120+ locations—from tertiary hospitals to remote coastal clinics—execution was strained by siloed decision-making, overlapping accountabilities, and uneven manager capability. In a multi-union environment, complex change processes slowed adoption of best practices; region-by-region realities (clinical, cultural, Indigenous, rural/remote) produced variability in care pathways, quality metrics, and follow-through on safety actions. The result: local pockets of excellence but inconsistent operating routines, psychological safety that varied by site, and an unreliable line of sight from enterprise priorities to frontline care conditions that can elevate critical-incident risk (handoff failures, escalation delays, near-misses) and blunt system learning. Organizational health was thus the rate-limiting factor for performance: without sharper decision rights, shared clinical/operating norms, and a visible rhythm of review and improvement, the system could not consistently scale improvements, sustain innovation, reduce adverse events, or translate transformation programs into measurable gains in patient safety, experience, and outcomes.

Solution

We used McKinsey’s OHI as a common language and baseline across regions, sites, and bargaining units to identify the few practices most tied to patient outcomes, quality, and critical-incident risk. Segmented results (by role, union, geography, care setting) pinpointed execution gaps such as decision rights, role clarity, psychological safety, consequence management, and local problem-solving cadence. We hard-wired 3–5 priority practices into a simple operating rhythm (share results, align the SLT, equip managers with playbooks, make accountability visible with a quality/safety dashboard). Quarterly pulses and “health clinics” closed regional/unit gaps—moving the organization from bottom-quartile to mid-quartile OHI performance in under two years, with gains showing up as safer care and more consistent results.

Accountability & Coordination

60%

Capabilities & Talent (increased)

80%

Motivation & Rewards

4.8X

Direction & Purpose (increased)

70%

Testimonial

“I’ve worked with many transformation leaders; Parm Hari stands out. She brings a rigorously strategic mindset and a problem-solving approach that makes people feel welcomed, respected, and empowered to contribute. Parm is candid about what isn’t working and has a tremendous ability to put the right systems and processes in place, creating an effective operating rhythm and visible accountability that keep execution on track. In practice, that means turning measurement into momentum: clarity of direction, simple routines leaders can run, and accountability that sticks. Parm doesn’t just design change, she makes it live in the organization.”

Miklós Dietz, Senior Partner and Managing Parter, McKinsey Vancouver

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