Healthcare reform will signal significant impacts on many organizations

Strategic planning forhealth care organizationsHealthcare is a dynamic and changing industry.Healthcare reform will signal significant impacts on manyorganizations in terms of daily processes, clinical operations,and financial sustainability.Strategic planning in healthcare organizationsNeedfor SP:Increasingly informed, demandingand non loyal clientsIncreasingly professional and skilledcompetitors.Limited resources for production.Focus is shifted from the product orservice to the clientSize and complexity of the HOStrategic planning in healthcare organizationsThereshould be a steering group within the HO tolead the development and implementation of astrategic planThis group should represent all interests andinclude people with leadership skills. Ideally, thisgroup should be led by its chief representative,who will act as the driving force and displaystrong commitment to the project and shouldinclude someone who is familiar with SPmethodology.The group must have real executive power toavoid being perceived as a mere planning entity.Strategic planning in healthcare organizationsApplyingthe Mission, Vision and ValuesMission This is a written statement that defines the final aim ofthe HO, that is, its reason for being.Vision: The vision statement is a written statement that presentsthe future image of the HO after the transformation process.Values are the set of principles, rules and cultural aspectsgoverning the HO and determining their institutional behavior.They constitute the organization’s ethical code that gives it its“soul” and “character”. These values predict a specific responseby the HO when a situation arises that must be immediatelyresolved.The values must be shared and widely disseminated.The real values of an organization are those that actually governits behavior and decision-making processes, whether they areformally stated or not.Strategic planning in healthcare organizationsUnderstandingExternal environment :Clients: it is essential that the HOidentify its clients and what they canexpectCompetitors to understand cost andservice efficiencyProviders: the HO should characterizeand differentiate their suppliersOwners: ownership equity of the HO.Strategic planning in healthcare organizationsAnalyzingthe Internal EnvironmentResources: an analysis is made of the HO’savailable resources, including people, financialbudgets, structural resources (and their degree ofobsolescence, and organizational resourcesThe legal situation: an analysis is conducted ofthe current regulations affecting performance,particularly those limiting or guiding it.Other power groups within the HO: trade unions,professional associations, internal decisionmaking bodies, clinical commissions, informalpower groupsStrategic planning in healthcare organizationsAnalyzingof internal environment (contd)Analysis of clinical care, training and research activity:without doubt, this is the part of the HO’s internal analysiswith the greatest scope.It is important that the analysis is conducted over a longenough period to detect trends that may motivate takingstrategic decisions. This analysis has to be addressedfrom the perspective of the quantity, quality and cost ofproduction; comparing the HO’s data to standard dataand data from competitors is of maximum utility.The analysis of activity should not simply produce anavalanche of data but must be synthesized to highlightwhat is relevant and bring out any need to take strategicdecisions.Strategic planning in healthcare organizationsstrategicplan steering group will now have a wealth of ideas about possiblestrategic actions that could be addressed in the strategic plan.Administrators have to perform the SWOT analysis, an acronym formed fromstrengths (S), weaknesses (W), opportunities (O) and threats (T), which classifiesthe results of the analysis.This enables them to understand the kind of planning that has to be carried outStrategic planning in healthcare organizationsStrategic Alternatives :Throughout the processdeveloped so far, the planning team has been able togenerate numerous alternative strategic actions. All these proposals are nowformally entered in a document, without judgment regarding their feasibilityor relevance, and where no idea is rejected without due consideration.Armed with this set of proposals, the strategic plan steering group begins aprocess which classifies and groups them into more or less defined areas ofaction. These areas of action are also simultaneously identified and nameddepending on the type of proposals they contain.Based on the various discussions that have identified them, the strategicaction selection process is fine-tuned; some proposals are discarded whereassome are linked to other proposals, thus better defining the fields of actioneach time. At this stage, the wide range of options for action that wereoriginally suggested are narrowed down to some extent, leaving aside thosethat clearly do not meet the minimum conditions of feasibility or do not havethe desired scope.The strategic plan steering group concludes this stage with a set of no morethan 20 areas of action, which constitute the strategic optiionsStrategic planning in healthcare organizationsDoesthe formulation provide a strategicproposal that will lead the HO to a genuinelyunique position compared to the previousposition and to that of the competitors?Does it offer value in a different way?Have any decisions been taken that involveother actions being stopped? Will services becut?When certain activities stop, does that changethe way operations are performed?Are the strategic choices that have been madevalid in the long term?Strategic planning in healthcare organizationsChange managementAre leaders willing to leadthe way forchange initiativesHow are communication protocols within theHODo the employees accept changes and whatare mechanisms to resistances in changesHow are conflicts handledHow does administration deal withcommunication, team work and planning ?Strategic planning in healthcare organizationsThee strategic plan should have the capacity to allow thischange to occur, although the need for change should becompelling and the reason for change should be thoroughlydocumented.An SO should only be changed after deviations have beenregularly observed over 1 year, or when significant changes,unforeseeable during the initial planning stage, haveoccurred in the environment or in the HO.Several SOs may undergo systematic failures in the sameSA, leading to the possibility that the SA itself is incorrect orthat it has been undermined by internal or environmentalchanges.Then and only then should the strategic plan steering groupchange that particular SA. These changes should be made asa last resort.Strategic planning in healthcare organizationsBalancedscore cardStrategic planning in healthcare organizationsTheBalance scorecard will enable HO tolook at the four different perspectivesThe financial perspective asks how theorganization should appear to shareholdersso that the company can succeed financially.This perspective indicates if the business isimproving the bottom line, measuring itemssuch as profitability and shareholder value.Financial objectives reflect economicconsequences of actions already taken inthe other perspectives.Strategic planning in healthcare organizationsBalance Scorecard (contd)The customer perspective askshow anorganization should appear to customers toachieve the organization’s vision. Customerobjectives identify customer and marketsegments where the business wouldcompete and what performance would beexpected for these targeted segments. Thescorecard focuses on customer concernsprimarily in four categories: time, quality,performance and service, and cost.Strategic planning in healthcare organizationsBalanced Scorecard (contd)The internal business perspectiveasks what businessprocesses the organization should excel at to satisfyshareholders and customers. This perspective measuresthe internal business processes, core competencies, andtechnologies that would satisfy customer needs.The innovation and learning perspective asks how theorganization would sustain its ability to change andimprove to achieve the organization’s vision. Thelearning and growth perspective identifies theorganization’s infrastructure needed to support the otherperspectives’ objectives. This perspective measures acompany’s ability to innovate, improve, and learn, suchas the ability to launch new products.Strategic planning in healthcare organizationsEffectiveness of strategy formulation:Align external and internalenvironment towards patient deliveryqualitySet standards of high qualityPut into practice meaningful useAdministrate the different functionspurposefullyUse the four quadrants of Strategicfocus to achieve objectives .Strategic planning in healthcare organizationsInvolvebudgeting parameters with financialimplications into planning processEnsure that Health care delivery brings inpatient revenuesAssociate special standards to becompetitiveSelect strategies that enable the HO toremain sustainable and competitiveUse strategic planning reviews and auditprocesses that are aligned towards vlauesofthe Health care organization .Strategic planning in healthcare organizationsBibliography:Caudle, Sharon. “The Balanced Scorecard: A Strategic Tool inImplementing Homeland Security Strategies.” Homeland SecurityAffairs 4, Article 2 (October 2008). A, Trullenque F. ¿Por quéuna Dirección Estratégica?. Madrid:Enlaze3 Print Management;2010. p. 19–44Gimbert X. Conceptos estratégicos clave, Deusto. Barcelona: GrupoPlaneta;2010. p. 55–6Ginter PM, Swayne LE, Duncan WJ. Strategic management ofhealthcare organizations. 4th ed. Boston: Blackwell;2002.Kotter JP. What leaders really do. Harv Bus Rev. 1990;68:103-11.MedlineLee TH. Turning doctors into leaders. Boston: Harv Bus Rev.2010;88:50-8.MedlineStrategic planning in Healthcare organizationsMintzberg H. Edady tamaño. In: La estructuración de lasorganizaciones. 1st ed. Barcelona: Ariel Economía;1988. p.266–88.Martínez Riquelme JM, Temes Montes JL. Planificaciónestratégica en hospitales. 5th ed. Madrid: McGrawHill;2011. p. 332–51Porter ME. The five competitive forces that shape strategy.Harv Bus Rev. 2008;86:78-93. 137 MedlinePorter ME. What is strategy?. Harv Bus Rev. 1996;4-21.Zuckermann AM. Healthcare strategic planning. 2nd ed.Chicago: Health Administration Press;2005.


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