strategic planning in healthcare
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Healthcare ManagementTRANSCRIPT
STRATEGIC PLANNINGA TQM LECTURE FOR CME
BY
DR. AQEEL AHMED KHAN
TQM COORDINATOR ARAR CENTRAL HOSPITAL
KSA
Where to Begin
Like all businesses, medical practices should develop an annual business plan. Along with goals for growth,
Typically, the annual plan focuses on reviewing the current year and projecting operations into the next period. Strategic planning includes the basic components of the annual plan, but also includes goals that go well beyond the next year.
Some definitions of Strategic Planning
Doing Things On Purpose, For Good Reason, and With Good Information
Strategic planning is a “Systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” (www.BusinessDictionary.com)
Cont…
Strategic planning is a visionary process that results in major, long-range and far-reaching strategic directions or goals for the future
Strategic plans provide the foundation for operational planning in the form of policies, procedures, and strategies for obtaining and using resources to achieve those directions
What is Strategic Planning?
“Strategic planning is a formal process designed to help an organization maintain an optimal alignment with the most important elements of its environment” (Rowley, Lujan, & Dolence, 1997, p. 15).
The strategic planning process supplies the organization with tools that promote future thinking, applies the systems approach, allows for setting goals and strategies, provides a common framework for decisions and communications, and relies on measuring performance (Steiner, 1979).
Why do Strategic Planning?
If you fail to plan, then you plan to fail – be proactive
about the future Strategic planning improves performance Counter excessive inward and short-term
thinking Solve major issues at a macro level Communicate to everyone what is most
important
Strategic Planning SessionAn interactive planning session through open
discussion, consensus and commitment to a course of action to achieve desired outcomes.
The next step is to identify where the practice is today.
Once the current situation is summarized, the practice can develop its vision for the future. This last phase of the planning retreat includes development of goals, objectives, strategies and action plans.
How to proceed?Strategic planning begins with a work session
involving physicians as well as top managers.
An independent, experienced and knowledgeable facilitator should be selected by the practice to guide the process to ensure impartiality and inclusiveness.
comparative analysis
Put the strategic plan in writing so there is a blueprint for implementation and monitoring. It is important to include each of these elements:
• Introduction — mission statement• Practice summary — current situation analysis• Vision for the practice and practice goals• Strategies and objectives• Assignment of responsibility and monitoring
and evaluation techniques
Strategic Management: Model
Identify Strategic Factors
• Strengths
• Weaknesses
Scan Internal
Environment• Core Competence
• Synergy
• Value Creation
Identify Strateg
ic:• Corporate
• Business
• Functional
Define New:• Mission
• Goals
• Grand Strategy
Evaluate Current:• Mission
• Goals
• Grand Strategy
Scan External
Environment• National
• Global• Opportunit
ies
• Threats
Identify Strategic Factors
SWOT
Implementing Strategy via Changes in:
• Structure
• Human resources
• Information & control systems
8Matt H. Evans, [email protected]
Strategic Planning ModelA B C D E
• Environmental Scan
Assessment
• Background Information
• Situational Analysis
• SWOT – Strength’s, Weaknesses, Opportunities, Threats
• Situation – Past, Present and Future
• Significant Issues
• Align / Fit with Capabilities
• Mission & Vision
• Values / Guiding Principles
• Major Goals
• Specific Objectives
• Performance Measurement
• Targets / Standards of Performance
• Initiatives and Projects
Baseline Components
• Performance Management
• Review Progress –Balanced Scorecard
• Take Corrective Actions
Down to Specifics
Evaluate
Where we are Where we want to be How we will do it How are we doing
• Gaps • Action Plans • Feedback upstream –revise plans
11Matt H. Evans, [email protected]
Assessment Model:S W O T
Assessment
External Assessment: Marketplace, competitor’s, social trends, technology, regulatory environment, economic cycles .
Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers, . . .
• Easy to Understand• Apply at any
organizational level
• Needs to be Analytical and Specific
• Be honest about your weaknesses
Good Points Possible Pitfalls
SWOT SWOT
Strategic Management: PEST Analysis
A scan of the external macro-
environment in which the firm
operates can be expressed in
terms of the following factors:
Political
Economic
Social
Technological
BaselineWhy create a baseline?
Puts everything about the organization into a single context for comparability and planning
Descriptive about the organization, as well as the overall environment
Include information about relationships – customers, suppliers, partners and stakeholders
Preferred format is the Organizational Profile
23Matt H. Evans, [email protected]
Major Components of theStrategic Plan / Down to Action
Components
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators and Monitors of success
Desired level of performance and timelines
Planned Actions to Achieve Objectives
O1 O2
AI1 AI2 AI3
M1 M2 M3
T1 T1 T1
Specific outcomes expressed in measurable terms (NOT activities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
Mission & Vision StatementsMissionCaptures the essence of why the organization
exists – Who we are, what we do Explains the basic needs that you fulfill Expresses the core values of the organization
VisionHow the organization wants to be perceived in
the future An expression of the desired end state, a long-
term focus for the entire organization
Core Values & GoalsCore ValuesProvides an underlying framework for making
decisions – part of the organization’s culture often rooted in ethical themes.
GoalsA goal is a specific statement of the desired
results to be achieved over a specified period of time. They shapes the way ahead in actionable terms.
36Matt H. Evans, [email protected]
Down to Specifics
ObjectivesTasks/Actions to be achieved
An objective is a measurable statement or incremental milestone which specifies a change or benefit that the entity hopes to achieve as it strives to achieve a specific goal.
May need several objectives to meet a goal
Objectives should be S M A R T (S – Simple, M – Measurable, A – Attainable, R – Realistic, T –
Time bounded)
Action Plans & Initiatives?The Action Plan identifies the specific steps that will be
taken to achieve the initiatives and strategic objectives
Each Initiative has a supporting Action Plan(s) attached to it
They describe who does what, when it will be completed, and how the organization knows when steps are completed
Like Initiatives, Action Plans require the monitoring of progress on Objectives, for which measures are needed
Policy & ProceduresPolicy: (Any decision or rule to a specific issue) A policy enables or restricts actions, providing
specific information about the ends, the entity desires to achieve. It is a direction for the leadership and staff .
Procedure (A methodology or pathway) Procedures specify how to accomplish any
policy. It is a set of activities which are aimed at planned outputs.
What Resources?How to Link?
Every Action Plan should identify the following:
The human resources needed to succeedThe time resources needed to succeedThe financial resources needed to succeedThe physical resources (facilities, technology,
etc.) needed to succeed
48Matt H. Evans, [email protected]
Evaluate
Strategy EvaluationThe implementation of the strategy must be
monitored and adjusted as needed.
Evaluation and control consists of the following steps:
Define parameters to be measured
Define target values for those parameters
Perform measurements
Compare measured results to the pre-defined
standard
Make necessary changes
Criteria for Good EvaluationIntegrity ReliabilityAccuracyTimelinessConfidentiality & SecuritySuitabilityFeasibilityAcceptability
• For each measurement, you should have at least one target• When you reach your targets, you have successfully executed your strategy
Targets (The aim for the period)
Continuous Feedbackthrough the Balanced Scorecard
Use of Balanced Scorecard framework to organize and report actionable components.
Scorecard is used for managing the execution of strategies.
Scorecard “forces” us to look at different
perspectives and take into account cause-effect relationships.
It improves how you communicate strategies.
51www.studyMarketing.org
Continuous Improvement
Instituting
best practices
and
commitment
to continuous
improvement
• Competent strategy execution entails
visible, unyielding managerial commitment
to best practices and continuous
improvement.
• Benchmarking, the discovery and
adoption of best practices, and six sigma
initiatives all aim at improved efficiency,
better product, and greater customer
satisfaction.
THANK YOU
Any Questions??