Strategic Planning Concepts

Defining Management in Pharmacy

• Management involves the process of planning, organizing, directing, and controlling human efforts and resources to achieve organizational goals.
• This process significantly impacts the success or failure of an enterprise.
• Managing a pharmacy requires a conscious, organized effort to make effective and efficient use of resources to meet pharmacy goals.
• Pharmacists will serve as managers, irrespective of their work environment.

Why Study Management in Pharmacy?

• Strategic planning in hospitals and community pharmacies can increase sales, profitability, and improve clinical performance.
• Interdependence among different departments can positively influence pharmacists' commitment and overall operational success.
• Pharmacists should have sufficient management training to achieve clinical service excellence and meet evolving patient needs.

The Changing Roles of Pharmacists as Managers

• Good pharmacy managers understand and meet the needs of all patients by providing products tailored to specific populations.
• Pharmacy managers in foreign countries must balance quality patient care with profitability when dealing with third-party payers.
• Management-minded pharmacists are vital in revenue generation and cost control.
• They seek to increase revenue, decreasing expenses, and optimize inventory and staffing.

The Management Process: Planning

• Planning defines the objectives by envisioning what the pharmacy aims to achieve and setting a direction for its operations.
• Programming is a structured and efficient approach that establishes the sequence and priority of actions.
• Forecasting involves estimating and predicting future conditions and events for resource allocation and informed decision-making.
• Scheduling is a tool for ensuring timely completion and effective resource management.
• Budgeting ensures financial stability and responsible spending by allocating resources to achieve objectives within a set timeframe.
• Developing policies ensures consistency and adherence to core values by formulating standing decisions for the entire enterprise.
• Establishing procedures promotes quality and consistency in achieving objectives by standardizing work processes for uniformity and efficiency.

The Management Process: Organizing

• Organizing involves identifying the necessary personnel and tasks, and then grouping them based on responsibilities.
• Delegating authority and responsibility to team members empowers them to make decisions and take ownership.
• Establishing clear relationships among people and tasks promotes communication, collaboration, and a cohesive work environment.

The Management Process: Directing

• Directing involves leading, motivating, and supervising employees to achieve organizational goals.
• Effective communication, motivation, and leadership are essential for a successful pharmacy.
• Communication, Motivation, Leadership and Supervision are essential for effective direction.

The Management Process: Controlling

• The controlling process involves monitoring the pharmacy's progress towards its goals.
• It includes setting standards, measuring performance, comparing performance to those standards, and taking corrective action.

Key Takeaways

• Management is essential for the success of any pharmacy.
• It ensures efficient operations and patient-centered care.
• Pharmacists will inevitably serve as managers so it crucial they have a strong understanding of management principles.
• Developing management skills enhances pharmacists' ability to lead, motivate, and achieve organizational goals.

Interpersonal Roles

• Leadership is the act of managers leading subordinates and their work, including hiring, training, and motivating employees.
• The Figurehead role includes performing ceremonial duties, such as welcoming visitors and signing official documents.
• The Liaison role involves managers coordinating activities, motivating teams, and interacting with managers to gather information.

Informational Roles

• Managers gather information by observing surroundings and asking subordinates, peers, and superiors.
• Disseminator managers disseminate information collected from various sources to subordinates, peers, and superiors who would not otherwise have access.
• Spokesperson managers represent the organization to outsiders, speaking on behalf of its plans, policies, and actions.

Decisional Roles

• Resource allocator managers allocate human, physical, and monetary resources to ensure efficient operations and project completion.
• Disturbance handler managers take corrective action to respond to unforeseen problems.
• Negotiator managers represent the organization in bargaining with outsiders and insiders to gain advantages for their unit. Managers act as entrepreneurs, overseeing new products and projects, they seek to improve departments and adjust to changes.

Managerial Personality Types

• Workaholic
• Reconciler
• Pragmatic
• Carefree
• Theoretical

Top Managers

• Top managers create and review long-term strategies for the entire organization.
• They assess the performance of various departments, ensuring cooperation across the organization.
• Top managers hire and promote key personnel.
• They consult with subordinates and address broad organizational issues and problems.

Middle Managers

• Middle managers create plans for their departments and prepare long-term plans for review by top management.
• They evaluate their subordinates to determine their capabilities and readiness for promotion.
• They set policies for their departments, ensuring that they meet adherence to organizational guidelines.
• Middle managers provide guidance and support to subordinates on matters of productions, personnel, and other work-related issues.
• They are involved in hiring and recruiting personnel for their departments.

First-Level Managers

• First-level managers create detailed, short-term plans for their teams.
• They make sure teams ensure efficient daily operations by following through with their plans.
• They evaluate the performance of their subordinates and offer feedback to improve their work.
• First level managers assign specific tasks to ensure understanding of expectations.
• They maintain contact with employees to address concerns.

Defining Planning

• Planning involves developing activities to achieve a desired goal.
• Activities have to be organized for goal achievement.
• It encompasses evaluating the activities required to reach the goal.

Significance of Planning

• Planning represents an organization's purposeful effort to maximize its future success.
• Planning may include more than just top-level managers.
• Front-line employees may be involved in smaller companies or ones without a rigid management structure.
• Many organizations invest time and resources in planning because of its importance.

Planning in Large Organizations

• Large companies delegate the volume of planning work to a special department.
• This department focuses solely on planning activities.
• The goal is to ensures comprehensive and effective processes across the organization.

Steps in the Planning Process

• Orient the process to a singular direction or purpose (vision/mission).
• Assess the organization's current situation or status.
• Set goals.
• Develop strategies
• Establish Objectives.
• Establish the objectives that will support the progress toward these goals.
• Define responsibilities.
• Define the responsibilities and timelines for each objective.
• Communicate the plan and discuss the plan to individuals and units involved.
• Monitor progress toward meeting goals and objectives.

Changing Roles of Pharmacists as Managers

• Pharmacists' traditional role involves dispensing medications.
• Pharmacists also play the role of clinical service through patient counseling and medication therapy management.
• Managerial roles include overseeing pharmacy operations and staff is a typical duty of a pharmacist.
• Pharmacists can provide Leadership through strategic planning and decision-making.

Principles of Management: Henri Fayol's 14 Principles

• Henri Fayol was a French industrialist.
• He developed a theory on general management.
• His greatest contribution was his discussion of management principles and elements in 14 Principles of Management.

Principles of Management

• Division of work distributes specialized jobs to various departments and/or positions.
• Employees should be provided with authority for ensuring the performance.
• Overlap of functions should be avoided. Employees should be held responsible for their work.
• Span of control relates to the limit on the number of subordinates that a manager can effectively handle.
• Unity of command means that every employee must be supervised by one and only one direct supervisor.
• Unity of direction describes how group activities should have one boss and one plan to follow.
• Subordination of individual interest to general interest says that the interest of one should never outweigh the interest of the business.
• Remuneration describes how there should be fair payment that affords maximum satisfaction.
• Centralization refers to how much influence authority has in decision making in the orginziation.
• Scalar chain is the structure of any organization, where authority lies at the top and trickles down.
• Order ensures proper assignment of employees and resources in management. Equity involves the fair and kind treatment towards employees in the workplace.
• Stability Of Tenure is necessary to provide needed time for employees to develop worth for the company.
• Simplicity indicates how, in management, unnecessary or complicated elements should be eliminated from plans and procedures.
• Esprit de Corps is indicative of the need for teamwork and cooperation in achieving the team goals.

Types of Planning in Pharmacy Organizations

• Business planning.
• Financial planning.
• Operational planning.
• Resource planning.
• Organizational planning.
• Strategic planning.
• Contingency planning.
• Each has a different purpose.

Strategic Planning

• The purpose of strategic planning is to maximize the effectivity and efficiency of an organization.
• The scope of strategic planning touches all aspects of organization. It's view-point is external. It is long term (5-20 years).

Operational Planning

• Operational planning prepares the organization to accomplish its objectives.
• The scope is specific to the immediate actions that need to be taken. It has an internal point of view and is short term (1-5 years)
• It focuses on accomplishing tasks.

Business Planning

• Business planning determines the potential profitability of a specific business or program and decides on whether to continue with it.
• The scope covers decisions in an organization.
• It is short term (1-5 years).

Resource Planning

• Resource planning guarantees the availability of resources to meet the organization's goals.
• The scope is focused on the defined resources and has a midterm term (1-10 years)

Organizational Planning

• Organizational planning identifies ways of facing any challenges in the future.
• The scope is specific to the structural parts of the organization (divisions, reporting, coordination).

Contingency Planning

• Contingency plans provide an option for orginaztions in case for something unforseen.
• It's view point is both external and internal with a short to long term expectancy.

Barriers to Effective Planning

• Planning has a time and effort cost associated with it and lack fo both can hinder the process..
• Interpersonal issues, internal conflicts and politics may cause a lack of planning.
• Adequate planning skills are need to be implemented.
• Failure for planning has a short term focus.

More Barriers to Effective Planning

• Changing circumstances always are not the answer.

More Limitations of Planning

• Educated guess work which means risks may be involved.
• Unforseen is something that the organization may slow down or hinder for them to reach where they have to be.

Limitations of Planning

• Data Quality Impact: Plans and predictions are only as good as the information used. Poor data leads to poor strategy.
• Effort Correlation: Successful planning depends on the amount of effort, creativity, time, and resources invested.
• Action Required: Planning must lead to action. Organizations that don't implement their plans will fail.
• Consider Changes: Adaptability is key for change!

Why Managers Fail in Planning

• The following all contribute to why managers fail in planning: Lack of commitment.
• Interchanging plans.
• Failure to develop and implement strategies.
• A lack of objectives/goals.
• Underestimating the importance of planning.
• Absence of clear authorities and responsibilities.
• Lack of control techniques and information.

Strategic Planning Foundation

• Having a solid and aligned vision and mission is important to form strategic plans.
• You can either use your vision and mission, or change that by making necessary changes.
• Any additional changes must be made in strategic planning.

Objectives and Goals

• Objective and goal are terms are interchangeable.
• Organizational guidance is developed at all levels in a business.
• Goal Definition is in what direction to go.

Strategy

• Shaping the Future is what is anticipated.
• Long-Term Direction are the steps for planning.
• Course of Action is what management is prepared to do to achieve their vision.

Strategic Plan Example

• Cost containment and strategic reduction is a rational goal of a pharmacy department.
• The goal of the plan is to monitor an existing system of pharmacy service.
• The objective is to measure clinical workload stats and predict pharmacy staff capabilities.
• The staff is to be evaluated against the activities they perform.
• Distributive and clinical measures have to be used.
• The plan then dictates development of a report.
• Finally staffing patterns have to be analyzed for strategic workload planning.

Process of Strategic Planning

• This presentation will go over the strategic plan.
• Management is required for objectives.

Pre-Planning Phase: Setting the Stage

• Defining Objectives involves setting the goals of the strategy.
• Identification process is involved.

Planning Phase: Crafting the Strategy

• Vision is the most important factor for a business.
• To utilize vision, strengths and opportunities all work with goal orientation.
• Step-by-step processes achieve goals to develop action plans.
• Theses plans include assigning tasks to employees that will achieve the long term goal.

Post-Planning Phase: Implementation and Monitoring

• Communication is key when understing tasks.
• The strategy also translates goals to daily tasks effectively.
• Goals have to be measured correctly to maintain performance.

Management by Objectives (MBO)

• Superior and subordinate managers identify shared goals.
• All employees have their own set of responsibilities.
• All measurements assess contributions to common goals.

Major Premises of MBO

• The Organizationals vision is guided by moral values.
• Responsibility is shared across all teams.

Decision-Making

• To make the correct decision it is important o weigh all options before deciding.
• Gathering information to develop information driven solutions.
• Having rankings on alternatives to implement correct solution.

The Decision-Making Environment

• The level of organization matters with how difficulty of the decision is.
• Decisions will affect the amount of people in the org.

Steps in the Decision-Making Process

• Clarification to understand where you need to go.
• Identification of what may stop you from achieving said vision.
• Developing the right actions to take.
• Evaluating a decision with its vision to determine the correct action.
• Setting standards.
• Measuring performance.
• Comparing performance standards.
• Taking course.

Conclusion

• Strategic planning, management by objectives and decision making all need to be in the loop.
• You will achieve more effectively when understanding concepts.
• Apply consistency.
• Achieve these goals well to be adaptable and stay in trend in the real world.

Organizing

• Organizing involves classifying and categorizing personnel.
• The importance is on defining authority and responsibilities.
• This process helps to integrate the organization collectively.

The Five Main Steps of the Organizing Process

• Reflect on plans and objectives when organizing.
• Establish what will be your major tasks.
• Then define those tasks into sub tasks with a system.
• Then allocate the tasks individually for others duties.
• It is important to keep constant contact and evaluation.

Organizing in Pharmacy Management

• Properly setting up will ensure efficiency at any pharmacy.
• Dividing the tasks will create easier ways of performing duties.
• Feedback from personnel is very important.

Fundamentals of Organizing

• The structure must reflect all of the objectives.
• Must represent authority of higher management.
• Allow more ideas to maintain the external environment.
• Organizations need to consider the employees limitations.

Importance of Organizing

• Organize for the future.
• Organizing will provide structure for humans.

Method of Organizing the Pharmacy

• Define a clear set of goals.
• Identify all tasks as much as possible.
• Always group tasks well.
• Remember to assign managers where able.
• Always keep a strong line of communication and arrange the personnel accordingly.
• Establish steps of control.

The Nature of Organization

• The procedure depends within the business.
• The goal is to organize for effective business goals.
• All employees have knowledge of requirements.

Principles of Organizational Structure

• Differentiation is on the the verticals.
• Centralization in the concentration.
• Organizations have a responsibility depending on the action.

Types of Differentiation

• The structure allows the training and the tasks.
• The tasks have assigned value.
• The training all happens around the world.

Additional Principles of Organizational Structure

• Remember to assign managers where able.
• Always keep a strong communication and assign personnel.
• Establish steps of control.

Organizational Chart

• Shows all structures of employees in business.
• This allows functions for main units for structure from above.

Aspects of Organizational Charts

• The order of management should be clear.
• Followed with a plan to increase employees.
• The top roles always have authority that is delegated to other employees.
• The business always starts within.

Purposes of Organizational Charts

• Help in the business.
• Have different duties.
• Show grouping or direction.

Formalizing the Organizational Organizational Structures

• The Management must identify the relatively standard organizational needs.
• Ensure all standards coincide with the administration to align with trust.

Formal Organizational Structures

• Models need pre established organizations.
• It's important to understand position task at hand.

Line Organization

• This allows a system of preparation.
• There is always a chance demand something to subordinates.
• The organization of less managers can only go up to eight employees.

Line and Staff

• Employing staff with more understanding.
• Line and staff use more skills from business.
• The problem stems from line and staff workers.

Informal Organization Structures

• Follows more strength than all is used.
• The actions against the business.

Informal Organization Structures

• Organisation works at the same time.
• Owner of staff.

Types that depend on a function

• Professional work needs to have consultation that must be worked around.
• Advertising is good, the better people you connect to will allow people in your circle.

Results of Good Organization

• All people will have specific roles.
• It will be much easier for a person to have that role.
• No action will be dismissed.

Delegation

• The authority is to maintain low levels.
• This takes a lot of practice.
• Always perform a skill that is effective.

Elements of Delegation

• Responsibility is always first.
• Authority follows that action.
• Finally accountability needs to match to perform tasks professionally.

Types of Authority

• You have assigned tasks in mind.
• Ensure everyone's safety by following their ideas.
• This role will help with power.

Match key concepts related to strategic planning, including time horizons, viewpoints, objectives, organizational success, areas of focus, organizational benefits, scope, appropriateness, barriers, limitations, failure elements, challenges, and methods.