2016 CTT International Conference: Jim Staten shares how to use finances to make sound thoughtful and compassionate investments to support the vision in a values-centred way. His stories will show you a way to enable the transformational journey with sound financial principles.

1. Cultural Transformation Tools International Conference
September 28, 2016 – September 30, 2016
Toronto, Canada
Values-Driven Leadership in
Business and Society

2. Insights into Leadership
James Staten
Senior Vice President, Finance and Chief Financial Officer
University of Southern California
Day Two – Practical Examples & Application Models
September 29, 2016
9:55 a.m. – 10:40 a.m.

3. Insights Into Leadership
 Core Values
 Time & Money
 Vision
Leading From The Heart
3

4. Insights Into Leadership
Core Value Stories
From Two
Business Sectors
4
Health Care
Higher Education

5. Insights Into Leadership
5

6. Insights Into Leadership
Values
Integrity
Patient-Centered
Respect
Accountability
Compassion
Doing the right thing
Putting patients and families first
Valuing all people
Being responsible and taking action
Being empathetic
Values
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VISION
MISSION
VALUES

7. 1. 20,000
2. $4 B
3. $160 M
4. 2,000/200
5. Epic
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8. Insights Into Leadership
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My USC Journey Thus Far . . .
Sign USC Employment Contract, October 2015
Health System Financial Turnaround,
June 30, 2016
USC Start Date, January 19, 2016
Moody’s USC
Credit Opinion,
August 9, 2016
USC Achieves
Record Low Interest
Rate on $723M
Bond Refinancing,
August 15, 2016
Workday Kick-off,
September 22, 2016

9. Insights Into Leadership
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Vision:
To transform education in a rapidly changing world by creating
scholarship with consequence and connecting brilliant minds
equipped to explore and lead new frontiers of human progress.
Mission:
The development of human beings and society as a whole
through the cultivation and enrichment of the human mind,
body, and spirit. The principal means by which our mission is
accomplished are teaching, research, artistic creation,
professional practice and selected forms of public service.
Values:
 Commitment to Service
 Search for the Truth
 Respect
 Diversity
 Informed Risk-Taking
 Integrity
 Team Spirit
These values define our community, sustain a sense of
cohesiveness, and connect us to our past and to our future.
VISION | MISSION | VALUES

10. Insights Into Leadership
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Fertitta Hall Ribbon Cutting
September 7, 2016

11. Insights Into Leadership
The 1% Rule
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99%
1%

12. Insights Into Leadership
USC President, C.L. Max Nikias,
Spotlights Diversity in Annual Address
“It is by embracing every culture, my fellow
colleagues, every religious view, every
individual, that we find ourselves.”
– C. L. Max Nikias, February 11, 2016 10

13. Insights Into Leadership
USC Health System Turnaround
Twelve Month Year-To-Date FY2016
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$1.3B
$1.4B
$1.5B
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
Total Revenue($ in millions)
$20M
$39M
$110M
1.5%
2.8%
7.3%
-
20
40
60
80
100
120
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
EBITDA before Physician Recruitment
EBIDA before Physician Recruitment EBIDA Margin
($ in millions)
2015 Actual FY 2016 Budget FY 2016 Actual
($67M)
($50M)
$10M
-5.1%
-3.6%
0.7%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
(80)
(70)
(60)
(50)
(40)
(30)
(20)
(10)
-
10
20
Bottom Line Operating Results
Bottom Line Operating Results Bottom Line Margin
($ in millions)
2015 Actual FY 2016 Budget FY 2016 Actual
2015 Actual FY 2016 Budget FY 2016 Actual
15%
Revenue
Growth
Rate

14. Insights Into Leadership
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Credit Strengths:
• Excellent strategic position
• Exceptional fundraising
• Large research activity
• Strong governance and management
• Expanded senior management team
• Close integration of the university and healthcare operations
• Consistently positive operations and improved healthcare operations
• Close integration of the university and healthcare operations
9 August 2016
Outlook Stable
Aa1

15. Insights Into Leadership
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Lowest
Interest
Rate for
Bond
Yields of
20–30 Year
Maturities
3.028%
Morgan
Stanley
Building
Near Times
Square in
NYC
Aug. 2016

16. Insights Into Leadership
How a person or
organization spends their
Time And Money
speaks to what is
important to them
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Through the CFO Lens

17. Insights Into Leadership
Until world business leaders become aware
that they are the problem, they can’t be part
of the solutions that are so needed today
Present and Open to the possibilities that
might be revealed in the moment.
Release that
which doesn’t
serve us
Aware of our
reliance on past
successes and
expectation of
what the future
should hold
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18. Insights Into Leadership
Vision
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19. Insights Into Leadership
New world business leaders will increasingly strive to build bridges (in their
work) improving the health and wellbeing of those they serve guided by
W I E
S
N
D
U
The Seven Directions
Allies
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20. Insights Into Leadership
The Three Piles
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21. Insights Into Leadership
1. Financially Conservative
2. Strong Shared Values
3. Peripheral Vision
4. Experimental Mindset
Characteristics of
Long-Lived Organizations
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22. Insights Into Leadership
The 3 “D”s
1. Design
2. Delegate
3. Disappear
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23. Insights Into Leadership
Q & A
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