Strategic Planning Process Overview

Strategic Planning

• Strategic planning is the process of identifying a desired future state for an organization and the means to achieve it.
• Market forces, both controllable and uncontrollable, influence an organization's future success. Understanding and adapting to these forces is crucial for achieving maximum success.
• Failing to account for market forces can lead to organizational failure.
• Resource allocation is important for achieving desired future states. Proper allocation of resources, based on a firm understanding of the operating environment, can help reach desired goals effectively.
• A strategic plan is typically developed with a multi-year time horizon (e.g., 3, 5, or 10 years) and updated annually.

Strategic Planning Process

• The process starts with SWOT analysis.
• Strategy identification and selection follow.
• Establishing strategy tactical plans involves defining implementation steps, timelines, and expected results.
• Rollout and implementation involve board endorsement & related planning (operating plan, marketing plan, facilities plan and capital plan.)
• Monitoring and control use dashboards.
• Feedback is crucial for continuous improvement.

SWOT Analysis

• SWOT analysis is used to gain a snapshot of an organization's interaction with the market.
• It compares internal capabilities and intended strategic direction to how the market presently operates.
• SWOT analysis identifies market opportunities and threats for the organization.

Situational Assessment

• Market assessment: includes aspects like the healthcare workforce, consumers and payers, technology innovations, regulatory environment, competitive rivalry, and market volume forecast.
• Market assessment (5 forces model): encompasses the power of the healthcare workforce, consumers and payers, innovations in technology, regulatory environment, and competitive rivalry.
• Market assessment (additional aspects): focuses on the power and preferences of consumers and payers. This includes elements like patient-centric models, community needs, financial status, strategic performance, and core capabilities.
• Innovation in technology can reduce or increase the need for certain professionals, and also necessitate additional financial resources.
• Organizational assessment includes aspects like organizational volume forecast, financial condition, strategic performance, and core capabilities.
• Include mission, vision, and values within the assessment.
  • Mission: A brief description of the organization's purpose.
  • Vision: The organization's aspirations for the future.
  • Values: The principles that guide the organization's actions.

Strategy Identification and Selection

• A detailed SWOT analysis is often conducted when an organization is designing a multiyear plan.
• Relevant aspects of the SWOT analysis are selected based on the identified strategic direction.
• If the strategy involves diversification, the analysis should focus on areas aligning with current organizational strengths.

Strategy Tactical Plans

• Strategy tactical plans include implementation steps, timelines, and expected outcomes.

Rollout and Implementation

• Critical aspects include securing board approval, developing an operating plan, establishing a market plan, defining a facilities plan, and creating a capital plan.

Monitoring and Control

• Monitoring and control utilizes dashboards.
• Dashboards provide a visual representation of an organization's performance against set goals over time.
• Dashboards display strategic, operational and financial indicators.
• Dashboards should present a manageable number of indicators to remain effective and functional.
• ABC Health care, inc. is an example of a dashboard.

Strategic Planning and Execution

• Managers are responsible for supporting organizational strategy and ensuring subordinate understanding of said strategy.
• Strategic planning is driven by organization development but execution remains the responsibility of leadership at all levels.

Research Sources

• Examples include Dartmouth Atlas of Health Care, Center for Studying Health Systems Change, Sg2 Health Care Intelligence, American Hospital Association, Henry J. Kaiser Foundation, and the Society for Health Care Strategy and Market Development.