Strategic Planning PDF

Chapter 5 Strategic Planning  Strategic Planning Is the process of identifying a desired future state for an organization and a means to achieve it  Importance of Strategic planning Market forces-controllable and uncontrollable-influence the future success of that organizat...

Chapter 5 Strategic Planning  Strategic Planning Is the process of identifying a desired future state for an organization and a means to achieve it  Importance of Strategic planning Market forces-controllable and uncontrollable-influence the future success of that organization- Identifying these forces and planning for ways to adapt to them can an organization achieve the greatest success- Ignoring these forces can most certainly lead to organizational death Resource allocation-understanding the organization's operating environment and identifying a strategy to reach a desired future state, resources can be allocated appropriately and effectively.  strategic plan The development of the strategic plan and- multiyear time horizon (3 or 5 or 10 years, for example) and updated annually. Execution of the organization's strategy-done on a continuous basis and is the critical factor in management of the organization's strategic intentions, optimally providing continual feedback for the development of any future plans. Figure 5-1: Strategic Planning Process  Strategic Planning Process SWOT Analysis Strategy Identification and Selection Strategy Tactical Plans Rollout and Implementation Monitoring and Control Feedback  SWOT Analysis To gather a snapshot of how the organization is currently interacting with the market in comparison to the internal capabilities and intended strategic direction of the organization, and To identify market opportunities and threats that the organization may want to address in future strategic efforts.  Situational Assessment Market Assessment: (5 forces model) – Health Care Workforce – Consumers and Payers – Innovations in Technology – Regulatory Environment – Competitive Rivalry – Market Volume Forecast Figure 5-2: Market Assessment Model  Market Assesment Power of consumers and payers – Patient centric model – Community Needs – Financial Condition – Strategic Performance – Core Capabilities  Market Assesment Innovation and new technology Innovations in technology may also reduce the need for other types of clinical staff, as in the case of some surgical innovations (e.g., minimally invasive surgery, roboti technologies, drug advancements, etc.), and/or they may significantly increase the requirement of financial resources, as in the case of new radiology equipment (e.g., a new CT scanner, new fluoroscopy equipment, MRI, etc.).  Situational Assessment (Cont’d.) Organizational Assessment – Organizational Volume Forecast – Financial Condition – Strategic Performance – Core Capabilities  Situational Assessment (Cont’d.) Mission Vision Values  Situational Assessment Mission-enduring statement of purpose It aims to identify what the organization does, whom it serves, and how it does it. For example, Radiologix, a radiology services company, “strives to be the premier provider of diagnostic imaging services through high-quality service to patients, referring physicians and mutually beneficial relationships with radiologists who provide expert interpretations of diagnostic images”  Situational Assessment Vision-to identify a specific future state of the organization, The vision of the American Hospital Association is “of a society of healthy communities, where all individuals reach their highest potential for health” Values-statement define the organization's culture—what characteristics it wants employees to convey to customers. An example of one such value from Duke University Health System in North Carolina is: “We earn the trust our patients place in us by involving them in their health care planning and treatment and by exceeding their service expectations”  Situational Assessment Organizational Assessment Quantitative section- – Organizational Volume Forecast – Financial Condition Qualitative section- – Strategic Performance – Core Capabilities  Strategy Identification and Selection If the organization is at the start of the development of a multiyear plan, it will usually conduct a rather thorough SWOT analysis. identified long-term strategic direction,- SWOT may selectively analyze only those areas that are relevant to the identified strategic direction- For example, if the organization has resolved to grow defined service lines, the analysis may focus more specifically on those areas of the market. if the direction is diversification, the analysis may focus more on areas related to the organization's current strengths, whether they are related to service line or internal capability  Strategy Identification and Selection Scenario Exploration Assumptions-applying different planning assumptions, many different scenarios may result. Financial Targets Resource Matching Outcomes-if an organization concludes it will differentiate itself through its orthopedic services (strategic direction), the desired outcome may be to lead the market in orthopedic service volumes within two years.  Strategy Tactical Plans Implementation Steps Timeframes Results Table 5-3  Rollout and Implementation Board Approval/Endorsement Operating Plan Marketing Plan Facilities Plan Capital Plan Figure 5-3  Monitoring and Control accomplished through the use of an organizational dashboard, or scorecard. A dashboard is a visual reference used to monitor an organization's performance against targets over time. Its simplistic design should allow for quick assessment of areas that may need adjustment, similar to an automobile dashboard. Dashboards can depict strategic, operational, and/or financial outcome indicators, depending on the organization's needs, but care must be taken to highlight a manageable number of indicators, or the dashboard will lose its functionality.  Monitoring and Control Dashboards Figure 5-4  STRATEGIC PLANNING AND EXECUTION: THE ROLE OF THE HEALTHCARE MANAGER Managers are responsible for identifying the ways to support the organization's strategy and for ensuring that their subordinates have the knowledge and understanding of the strategy in order to do the same. Strategic planning may be driven by organizational development but its execution is the responsibility of leadership at all levels.  A Sampling of Research Sources Dartmouth Atlas of Health Care Center for Studying Health Systems Change Sg2 Health Care Intelligence American Hospital Association Henry J. Kaiser Foundation Society for Health Care Strategy and Market Development To name but a few.