Kansas Masonic Home
Action Pact Development has made a relatively complicated undertaking an enjoyable experience”
“Action Pact Development was an integral partner in developing the pre-feasibility analysis for the re-positioning project at Kansas Masonic Home. It made perfect sense to continue using Action Pact Development as a development partner to help us navigate the complex phases of the project so staff could continue to focus on the day-to-day operations.”
--Shawn Sullivan, former CEO, Kansas Masonic Home
“If I had to describe the benefit Action Pact Development brings in one word it would be ‘experience’. They have done this repeatedly and are on the forefront of innovation in this area. Action Pact Development allows us to avoid hurdles and has greatly streamlined the entire process.”
--Matthew Bogner, CEO, Kansas Masonic Home
Experience with (and without) Action Pact Development (APD) has confirmed for Shawn Sullivan and Matthew Bogner the value of an integrated, all-inclusive approach at every step of organizational transformation -- from conception to development of the Household Model.
Sullivan is the former CEO for Kansas Masonic Home (KMH), a Continuing Care Retirement Community (CCRC) in Wichita. Bogner, former Administrator at KMH, is the new CEO.
Years ago Sullivan and Bogner worked together as CEO and Administrator respectively at another CCRC that was renovating its nursing home into households. The organization contracted with an architect who designed the project and estimated the cost with little or no input from stakeholders, a contractor or other key players.
“He told us how much it was going to cost and we moved forward with fund raising. When we actually bid for the project we found it was going to cost us twice as much as estimated … then we had to figure out what services to cut and what parts of the project to change,” says Sullivan.
Their second journey to households has followed a less rocky, less lonely path. Working at KMH a few years later, they contracted with APD to lead strategic planning, an Integrated Prefeasibility Analysis (IPA), and now, household development.
With APD’s approach, “you don’t have to feel like you’re on your own,” says Bogner. He and some 150 stakeholders of all stripes have sat with Household Model innovators, an architect, contractor, financial analyst and other experts to plan renovation of the entire CCRC campus.
“Strategic Planning with Action Pact Development was a great way for us to start, having not gone through that process at KMH for 15-20 years.”
High involvement at KMH began with a week-long session of visioning and strategic planning led by APD that brought together staff from all tiers with board members, residents and their family members. They discussed the current state of the CCRC and its need for change, the institutional versus the Household Model and the implications of change.
They poured over a baseline financial analysis and 10-year projections provided by APD. “We all recognized that our census, financial situation and physical plant would continue to decline unless we took drastic action,” says Sullivan.
The session ended with a strategic plan for becoming more competitive in the marketplace by converting the nursing home to households and renovating the independent and assisted living components of the CCRC.
Integrated Prefeasibility Analysis
“I found the IPA process extremely valuable in that you have all the players at the table from architect to contractor to financial analyst. You are able to simultaneously design the footprint, how much it’s going to cost, and plug it in to the financial model as opposed to having an architect do it behind closed doors, only to learn much later it’s not a financially doable project.”
With the strategic plan as a road map, they began the IPA three months later. Many of the same stakeholders involved in strategic planning met with an architect, contractor, financial analyst and Household Model experts in two-day sessions held intermittingly over a period of six months.
“We started by going from one building to the next and outlining a vision for what we needed to do for that particular building,” describes Sullivan. First they walked through the nursing home with frontline staff, families and residents to design the new footprint for households.
“There was a very free-flow sharing of ideas on how things should be outlined within the household footprint and development,” recalls Sullivan. As suggestions were made, the architect’s staff put them up on a projector screen for side-by-side comparison. Meanwhile, the contractor estimated the costs that APD analyst, Martin Dickmann, then plugged into the financial model. “It was all very simultaneous,” says Sullivan. “When something was suggested that was too expensive, we knew right away.”
The IPA enabled everyone to be on the same page in a very transparent process, he adds. Typically in construction projects “there is a sense decisions are made by executives in the back board room with very little input or buy-in from those who are going to be living and working there.”
But during the IPA, “A lot of wonderful ideas came from frontline staff and CNAs who worked in that environment and knew what would and wouldn’t work, and from residents who spoke up and said ‘this is what I think,’” says Sullivan.
By the end of six months stakeholders knew what they wanted for each building. They created five scenarios for the scope of the project – ranging from doing nothing, to only renovating the nursing home into households, to repositioning a few various other buildings, to renovating the entire campus.
“Renovating the entire campus had the highest capital cost, but also the best financial ratios,” says Sullivan. Thus the organization initiated a $14 million project.
“I think a lot of people thought there was no way that we can renovate each area of our campus and make it work financially,” he says. “The IPA really affirmed that it not only was possible, but the best scenario financially.”
Architectural Design/Household Development
“Action Pact Development has made a relatively complicated undertaking an enjoyable experience.”
After Sullivan left, Bogner became CEO of KMH with responsibility for household development. The transition to his new position is made easier, he says, by APD’s involvement of everyone in strategic planning and the IPA – processes that familiarized him with the design, development and financial forecasting before becoming CEO. Thus he hit the ground running.
One of the biggest benefits of KMH’s partnership with APD, says Bogner, is being able to focus on daily operations while APD consultants guide the renovation project, coordinating with and integrating its architectural, construction, organizational change and financing components.
Still, Bogner and the seven-member KMH leadership team sit in the driver’s seat of the project. They meet twice monthly (once in a telephone conference call and once face-to-face) with APD, the architect and contractor. APD tracks costs to ensure the financial model is up to date as development unfolds.
Having worked years earlier with Sullivan to create households without the help of consultants, Bogner says it is far easier with APD on board. “With their level of expertise they know the players that need to be contacted and brought to the table and at what time so you don’t have to stumble through the process. And they advocate for you with the architect, contractor, broker and investment banker … they have your best interest at heart.”
The completed project will give KMH one of the most innovative household communities in the country, says Bogner. “This would not have been possible without the support and guidance of Action Pact Development.”
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