Tony Spezia: It’s not a risk if you know the outcome

Sharon and Tony Spezie with their granddaughter, Annabelle Spezia, at Tony's retirement party.

Sharon and Tony Spezia with their granddaughter, Annabelle Spezia, at Tony’s retirement party.

Tony Spezia, who recently retired from his position as CEO of Covenant Health, gave a speech at a party in his honor April 1 that truly knocked it out of the ballpark.

Spezia’s speech was so powerful that Alan and I showed a video of it to our staff the following week. I think it contains some lessons for all business leaders — as well as an explanation of some of Spezia’s philosophies.

The party itself was phenomenal. Nearly 600 people came to the Knoxville Convention Center to toast the dynamic executive who has led our community’s largest private employer for the past 15 years.

During Spezia’s tenure, Covenant Health has:

  • Spent over $1.2 billion investing in its facilities, including building three new community hospitals
  • Taken over operations of hospitals in four counties at the request of communities that trusted Covenant to preserve services and jobs and improve the quality of available health care and access to physicians
  • Turned around its struggling managed care organization and sold it for $300 million, bringing needed capital into the Covenant organization
  • Been nationally recognized for its quality and service
  • Strengthened its balance sheet, resulting in one of the lowest borrowing rates in the country, providing Covenant with opportunities for growth and a certainty of continuing its nonprofit mission
  • Entered 2015 with the best financial performance in its history

Spezia is now CEO emeritus, focusing on strategic planning. He is succeeded by Jim VanderSteeg, whom he has been mentoring for years in preparation for this transition.

Linda Shell, wife of Max Shell, Covenant Health's former senior vice president of marketing and communications, greets Sharon Spezia.

Linda Shell, wife of Max Shell, Covenant Health’s former senior vice president of marketing and communications, greets Sharon Spezia.

Here are a few highlights from Spezia’s speech:

  • “The first half of my business career was spent in fields unrelated to health care,” he said. “I was born in a hospital and I had my tonsils out there. But that was the extent of my health care experience when I came to Knoxville in the early ’90s.” Spezia, the son of a waiter and a homemaker, was the first of his family to attend college. His early careers were in accounting and coal.
  • “Everyone’s job is the lifeblood of their family and should be treated as such by leadership. Without job security, not only the employee, but the entire family has stress and uncertainty.”
  • “Every employee wants to be proud of the organization they work for. They want it to stand for the right things.”
  • “Layoffs are not a part of Covenant’s vocabulary. If a leader suggests a layoff in order to right-size their department or business unit, they need to put their own name at the top of the list. Most layoffs are avoidable and are the result of poor planning and a failure to perceive the business conditions the organization is going to face.”
  • For leaders, there are a set of “Tony maxims:” “Lead by example. No matter how much success you have, never forget where you came from. Focus on making all the hard decisions. Drive decision-making throughout the organization — there are far more decisions to be made than leaders and employees realize. Do not accept the status quo. No more business as usual. Challenge everything. Look at everything and make decisions about everything all the time. Value commitment and teamwork above IQ.”
  • “Don’t complain about the challenges you face. Relish them. Because without challenges, there can be no accomplishment.”
  • “One comment I have heard frequently is that I am an outrageous risk taker. To those I would respond, ‘It is not a risk if you know how it’s going to come out.’ “
  • “What might appear to be bold strategy is, in reality, a long series of incremental activities based on available data that has been thoroughly studied and for which outcomes are far more predictable.”
  • “I thank the Lord for giving me the opportunity to lead Covenant Health. It is an organization that not only provides nearly 10,000 jobs, but it also makes a positive difference every day in the lives of the thousands of patients and their families who entrust their care to us. No one can ask for more meaningful work.”

(Disclosure: Covenant Health and Tony Spezia have been clients of Moxley Carmichael for more than 15 years.)

Tony Spezia, left, with state Sens. Becky Massey and Randy McNally.

Tony Spezia, left, with state Sens. Becky Massey and Randy McNally.

Spezia with state Sen. Doug Overbey.

Spezia with state Sen. Doug Overbey.

From left, Rudy McKinley, Dr. Doug Leahy and Pam Fansler.

From left, Rudy McKinley, retired from East Tennessee Children’s Hospital; Dr. Doug Leahy of Summit Medical Group; and Pam Fansler of First Tennessee Bank.

Former Knoxville Police Chief Sterling Owen, left, with Debby Saraceni, of Covenant, and Alan Carmichael.

Former Knoxville Police Chief Sterling Owen, left, with Debby Saraceni of Covenant and Alan Carmichael.

Music during the cocktail part of the evening was by the Old City Buskers.

Music during the cocktail part of the evening was by the Old City Buskers.

From left, Ed Curtis, of Summit Medical Group; Bob Feathers and Alan Levine, both of Mountain States Health Alliance..

From left, Ed Curtis of Summit Medical Group; Bob Feathers and Alan Levine, both of Blue Cross and Blue Shield.

In a nod to Spezia's Italian-American heritage, some of the passed appetizers were fried ravioli.

In a nod to Spezia’s Italian-American heritage, some of the passed appetizers were fried ravioli.

And Caprese kabobs.

And Caprese kabobs.

Spezia, right, greets Ted Flickinger and Julie Howard.

Spezia, right, greets Ted Flickinger and Julie Howard.

Pamela and Dr. Dean Turner, center, are flanked by Danni and Chief U.S. District Judge Tom Varlan.

Pamela and Dr. Dean Turner, center, are flanked by Danni and Chief U.S. District Judge Tom Varlan.

From left, Jim and Erin VanderSteeg, Wayne and Ruth Ann Vandersteeg, Brookd VanerSteeg and David VanderSteeg. (Photo by Loch and Key Productions)

From left, Jim and Erin VanderSteeg, Wayne and Ruth Ann VanderSteeg, Brooke VanderSteeg and David VanderSteeg. (Photo by Loch and Key Productions)

Spezia with Linda and Max Shell.

Spezia with Linda and Max Shell.

Jan and Sylvia Peters, left, with Mike and Evelyn Gill.

Jan and Sylvia Peters, left, with Mike and Evelyn Gill.

News Sentinel Publisher Patrick Birmingham with Spezia.

News Sentinel Publisher Patrick Birmingham with Spezia.

Bill and Ginny Morrow, left, with David and Sandy Martin.

Bill and Ginny Morrow, left, with David and Sandy Martin.

From left, Former Police Chief Sterling Owen, Register of Deeds Sherry Witt, Sheriff J. J. Jones, Assistant Chief Deputy Sheriff Lee Tramel and his wife, Megan, and Alan Carmichael.

From left, former Police Chief Sterling Owen, Register of Deeds Sherry Witt, Sheriff J.J. Jones, Assistant Chief Deputy Sheriff Lee Tramel and his wife, Megan, and Alan Carmichael.

From left, Nazzy Hashemian, Sandi Swilley, Gay Lyons, Tammy White and Nikki Hashemian.

From left, Nazzy Hashemian, Sandi Swilley, Gay Lyons, Tammy White and Nikki Hashemian.

Bruce and Monique Anderson with Don Parnell, right.

Bruce and Monique Anderson with Don Parnell, right.

Larry Mauldin, left, former chair of the Covenant Board, with board member Alvin Nance.

Larry Mauldin, left, chair of the Covenant Board, with the emcee of the evening, Hallerin Hilton Hill.

Debby Saraceni and Max Shell.

Debby Saraceni and Max Shell.

Bruce and Tami Hartmann.

Bruce and Tami Hartmann.

Richard and Dawn Ford, left, with Jackie and Ray Fisher. (With a photobomber, Alvin Nance!)

Richard and Dawn Ford, left, with Jackie and Ray Fisher.

Fran Olmstead, left, former chairman of the Covenant Health board, with current board member Alvin Nance.

Fran Olmstead, left, former chairman of the Covenant Health board, with current board member Alvin Nance.

Linda Shell, left, and Tami Hartmann.

Linda Shell, left, and Tami Hartmann.

Inside the ballroom, Beverly Kerr was providing dinner music.

Inside the ballroom, Beverly Kerr was providing dinner music.

Dean and Amber Littleton with Covenant's Laura Wallace, right.

Dean and Amber Littleton with Covenant’s Laura Wallace, right.

Pete and Cyndi DeBusk.

Pete and Cindi DeBusk.

Porscha and Brian DeBusk.

Porscha and Brian DeBusk.

Sam and Ann Furrow.

Sam and Ann Furrow.

Kelly and Knox County Mayor Tim Burchett.

Kelly and Knox County Mayor Tim Burchett.

Knox County Commissioners Bob Thomas, left, and John Schoonmaker.

Knox County Commissioners Bob Thomas, left, and John Schoonmaker.

On stage, from left, Tony and Sharon Spezia with Larry Mauldin.

On stage, from left, Tony and Sharon Spezia with Larry Mauldin.

Cheers! Jackie Fisher, left, with Dawn Ford.

Cheers! Jackie Fisher, left, with Dawn Ford.

Linda Ogle is constantly accompanied by her little dog wearing a matching outfit.

Linda Ogle is constantly accompanied by her little dog wearing a matching outfit.

Liz and R.B. Summitt.

Liz and R.B. Summitt.

Dolly Parton paid a special tribute to Tony Spezia in a video presentation. Click below to see that.

Click here for a great article about Spezia in the News Sentinel a few years back.

 

 

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6 Responses to Tony Spezia: It’s not a risk if you know the outcome

  1. Maria Cornelius, on April 22nd, 2016 at 9:52 am said:

    Love, love, love, love – did I mention love? – the approach to layoffs. Outstanding.

  2. Maria Cornelius, on April 22nd, 2016 at 9:52 am said:

    Oh, and I love, love, love, love, love Dolly.

  3. Cynthia Moxley, on April 22nd, 2016 at 10:03 am said:

    Thanks, Maria. I was surprised and very impressed by the “Tony maxims” — and his other remarks. And I also love Dolly!

  4. Alan Carmichael, on April 22nd, 2016 at 1:33 pm said:

    This was a great event. Tony’s comments about leadership were very interesting. While he was CEO, he predicted every major development in the health care industry in this market long before others saw them coming. Dolly’s video segment was another highlight.

  5. Monique Anderson, on April 26th, 2016 at 5:22 pm said:

    This was a very nice event. James, my son, will be working with Covenant in his new job in June!! He is very excited.

  6. Cynthia Moxley, on April 26th, 2016 at 6:42 pm said:

    Monique: Everyone at Covenant is very happy about the news about James!

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