Strategic Planning in Healthcare


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Healthcare Management

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Strategic Planning in Healthcare

  1. 1. 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.
  2. 2. 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.” (
  3. 3. 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
  4. 4. 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).
  5. 5. 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
  6. 6. Strategic Planning Session  An 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.
  7. 7. 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
  8. 8. 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
  9. 9. Strategic Management: Model Identify Strategic Factors •Strengths •Weaknesses Scan Internal Environment •Core Competence •Synergy •Value Creation Identify Strategic: •Corporate •Business •Functional Define New: •Mission •Goals •Grand Strategy Evaluate Current: •Mission •Goals •Grand Strategy Scan External Environment •National •Global •Opportunities •Threats Identify Strategic Factors SWOT Implementing Strategy via Changes in: •Structure •Human resources •Information & control systems
  10. 10. 8 Matt H. Evans, Strategic Planning Model A 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
  11. 11. 11 Matt H. Evans, 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
  12. 12. 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
  13. 13. Baseline Why 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
  14. 14. 23 Matt H. Evans, Major Components of the Strategic 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
  15. 15. Mission & Vision Statements Mission  Captures 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 Vision  How the organization wants to be perceived in the future  An expression of the desired end state, a long-term focus for the entire organization
  16. 16. Core Values & Goals Core Values  Provides an underlying framework for making decisions – part of the organization’s culture often rooted in ethical themes. Goals  A 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.
  17. 17. 36 Matt H. Evans, Down to Specifics
  18. 18. Objectives  Tasks/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)
  19. 19. 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
  20. 20. Policy & Procedures  Policy: (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.
  21. 21. What Resources? How to Link? Every Action Plan should identify the following:  The human resources needed to succeed  The time resources needed to succeed  The financial resources needed to succeed  The physical resources (facilities, technology, etc.) needed to succeed
  22. 22. 48 Matt H. Evans, Evaluate
  23. 23. Strategy Evaluation The 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
  24. 24. Criteria for Good Evaluation  Integrity  Reliability  Accuracy  Timeliness  Confidentiality & Security  Suitability  Feasibility  Acceptability • 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)
  25. 25. Continuous Feedback through 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.
  26. 26. 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.
  27. 27. THANK YOU Any Questions??