Chapter 3 Planning Management of Healthcare Organizations PDF

CHAPTER 3 PLANNING Management of Healthcare Organizations: An Introduction Third Edition Peter C. Olden Learning Objectives Studying this chapter will help you to  explain what planning is,  compare and contrast planning at different levels,  explain...

CHAPTER 3 PLANNING Management of Healthcare Organizations: An Introduction Third Edition Peter C. Olden Learning Objectives Studying this chapter will help you to  explain what planning is,  compare and contrast planning at different levels,  explain a model of strategic planning,  examine types of strategies for HCOs,  describe implementation of plans,  explain project planning,  identify sources of planning data, and  understand useful planning guidelines. What Is Planning? Planning is deciding what to do and how to it.  Higher-level managers plan “What to do” Long time periods Broad perspective of entire organization  Lower-level managers plan “How to do it” Shorter time periods Narrower perspective (smaller parts of organization) Steps to achieve higher-level plans What Is Strategic Planning? A decision-making activity that defines where an organization is going, sets its future direction, and guides its future efforts to move the organization toward its intended future.  Highest level of planning  Enables organization to Examine where it is now Decide where it wants to be in the future Figure out how it will get there  Emphasis on beating competitors and satisfying customers Potential Benefits of Strategic Planning  Gathers input from all parts of HCO  Provides viable direction and focus for HCO  Enables each part of HCO to align with HCO’s direction  Sets priorities to address crucial issues  Allocates scarce resources to biggest potential payoff  Establishes measures of success to gauge progress  Generates commitment to the plan  Coordinates and unifies diverse parts of HCO  Creates shared learning Potential Problems that Block Benefits of Strategic Planning  Not involving appropriate stakeholders  Overanalyzing data and delaying planning process  Avoiding difficult critical issues  Not including financial planning  Ignoring resistance to change  Not developing consensus and enthusiasm  Not transitioning from planning to execution Strategic Planning Approach Organizational Assessment SWOTs Organizational Direction  Managers plan HCO’s organizational direction as the desired future state  Managers review and decide organization’s... Mission: Purpose of HCO; why HCO exists Vision: What HCO aspires to become in future Values: Deeply held beliefs, ideals, standards of behavior Strategy: Idea that guides HCO’s decisions, actions, and behaviors in a consistent way  To achieve mission and vision  To gain competitive advantage Porter’s Strategies  Porter identified two broad strategies: Low-cost strategy Differentiation strategy  Each strategy can be used in a... Wide market: entire population Narrow market: e.g., only children, only male retirees  Four strategies Low-cost in a wide market Differentiation in a wide market Low-cost in a narrow market Differentiation in a narrow market Strategy Formulation  Plan how to resolve each critical issue identified in prior organizational assessments Example: Coordinate care to deliver value  Set specific goals, objectives, major initiatives that enable HCO to achieve new organization direction  For each issue, managers set a measurable goal that will... Resolve the issue Enable HCO to move toward vision and mission Strategy Implementation  Work shifts from top managers to managers at lower levels of hierarchy  Work shifts from strategic planning to... Planning projects Planning changes to day-to-day operations Planning who will do what, when, using which resources  Managers add detail to plans to achieve goals, resolve issues, achieve mission Specify actions, steps, tasks Set schedules Allocate resources Assign responsibility to specific positions Planning at Lower Levels  Lower level managers and departments... Help implement strategic plans Perform forecasted annual workloads set in strategic plan  Lower level managers prepare implementation plans Bring to life strategic mission, vision, strategy, goals Perform forecasted workload (e.g., # lab tests, # meals)  Convert annual forecast to seasonal, monthly, weekly forecasts  In big departments, supervisors plan for smaller work units Prepare workload targets, schedules, staffing plans, resource requirements, budgets Identify in detail what departments must do Review plans with higher managers for approval Project Planning Project: A temporary endeavor undertaken to create a unique product, service, or result Project management: Application of knowledge, skills, tools, and techniques to project activities to meet project requirements  Project managers develop implementation plans that help achieve strategic plan Project Management 1. Initiate: Define new project by obtaining authorization to start. 2. Plan: Establish scope of project, refine objectives, and define course of action required. 3. Execute: Complete work defined in project plan to satisfy project requirements. 4. Monitor and control: Track, review, regulate performance of project; identify changes required; initiate the changes. 5. Close: Formally complete or close the project. Project Management Project managers plan and manage for a project  Scope (i.e., expected results, project boundaries)  Schedule and timing of detailed tasks and activities required  Resources needed  Cost and budget  Procurement of supplies, equipment, and services  Risks involved  Work needed from other people and stakeholders Final Thoughts about Planning Consider these guidelines when planning:  View planning as continual process, not one-time event.  Realize planning is orderly yet messy, sequential yet circular.  Allow flexibility in planning process and in plan.  Combine objective analysis with subjective judgment.  Use—but don’t overuse—historical records and data.  Be open to new ideas, including “crazy” ideas.  Look inward (at organization), look outward (at environment).  Value both the plan and the process of planning.