IHD was an international hospital company with hospitals in three Central and South American countries. Cliff, IHD’s chief operating officer, had worked for the corporation for more than eight years and invested countless hours making the hospitals profitable. IHD was a privately held company with big plans but minimal financial backing. Cliff had built and was supervising ten hospitals that offered general acute care. The hospitals differentiated their care from that of their competitors by offering an “American”-style clinic practice, hiring only US-trained physicians, and obtaining Joint Commission accreditation. Over time, this strategy was successful.

Cliff was dedicated to helping his company succeed. For instance, when he had to terminate a CEO in one of the larger hospitals he could not find the right replacement immediately, so he moved to the location for six months to take the reins until he felt most of the major problems had been addressed and a competent CEO was found. He also traveled extensively and was on the road about 40 percent of the time, visiting different hospitals in all three countries. Cliff was the linchpin that made the company successful.

At least this is what he was told many times by the majority owner and CEO.

Cliff had a good relationship with the CEO. They frequently met to talk about the hospitals’ operations and challenges. The CEO also gave Cliff the highest possible evaluations, and significant bonuses when money was available. Cliff felt he could trust his boss.

Case Questions 1. Was this a misuse of power by the CEO?
2. How do the principles of power apply in this case?
3. What should Cliff do?