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Dr.Rangappa. S. Ashi
- 1. STRATEGIC PLANNING Mr. Rangappa. Ashi M.Sc.N Associateprofessor SDM Institute of Nursing Sciences, Dharwad, Karnataka.
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- 3. Introduction • Strategic planningis a means by which an organization defines its future. • The planning process involves strategies that provide direction for an organization’s future as well as an operational plan for the business . • Planning affords the opportunity to determine how capital and human resources are allocated.
- 4. Cont.. • Mission (purpose),vision, values, philosophy (belief) & objectives are powerful tools in the planning process & they are the basic tools of management.
- 5. What is Planning? Planningis a continuous process, beginning with the setting of goals and objectives & then laying out a plan of action to accomplish them, put them into play, review the process & the outcomes, provide feedback to personnel & modify as needed. As planning is put into action, the management functions of organizing, leading & evaluating are implemented, making all management functions interdependent.
- 6. Cont.. There are twomajor types of organizational planning : • long – range, or strategic planning • short – range or operational planning Strategic planning extends 3 – 5 years into the future. Operational Planning is short range planning that deals with day-to-day maintenance activities.
- 7. What is StrategicPlanning? • Drucker defines Strategic planning is a continuous process of making risk – taking decisions today with the greatest knowledge of their effects on the future; organizing efforts are necessary to carry out these decisions & evaluating results of these decisions against expected outcomes through reliable feedback mechanisms.
- 8. Cont.. Nursing administrators canincrease effectiveness through strategic planning, which can promote professional nursing practice & the long – term goals of the organization & the division of nursing. Clear, complete plans are developed in seven areas of key result. • Client satisfaction • Productivity • Innovation • Staff development • Budget Goals • Quality • Organizational climate Strategic planning in nursing is concerned with what nursing should be doing. Its purpose is to improve allocation of scarce resources, including time & money, & to manage the agency for performance.
- 9. Purpose of StrategicPlanning • Strategic planning clarifies beliefs & values • What are the organization’s strengths & weaknesses? • What are the potential opportunities & threats? • Where is the organization going? • How is it going to get there?
- 10. Cont… Executives using thestrategic planning process give direction to the organization: • improve efficiency • weed out poor or underused programmes • eliminate duplication of efforts • concentrate resources on important services • communications & coordination of activities • provide a mind –expanding opportunity • allow adaptation to the changing environment • set realistic & attainable yet challenging goals • help to ensure goal achievement. • Leaders need vision that is realistic & feasible. • The strategic vision should be clear, cohesive, consistent & flexible.
- 11. Aims Of StrategicPlanning Strategic planning is to bring an organization into balance with the external environment and to maintain that balance by over time (Sackett, Jones, and Erdley2005).
- 12. Phases of StrategicPlanning Process Phase 1 : The Mission & the Creed Develop statements that define the work, the aims, & the character of the division of nursing. These include idea statements of shared values & beliefs. They are called mission (purpose) & creed (philosophy) statements & relate to personnel, patients, community & all other potential customers.
- 13. Cont…… Phase 2: Datacollection & Analysis • Collect & analyze the data about the health care industry & nursing. • Such data should include internal forces that define the work & affect the employees, clients, stakeholders & creditors; technological advances; threats; opportunities to improve growth & productivity;
- 14. Cont… • External forcessuch as competition, communities, govt & political issues, & legal requirements; marketing & public relations or image; trends in the physical & social work environment; & communication. Use simple & complex forecasting techniques.
- 15. Cont… Phase 3: AssessStrengths & Weaknesses • Define those factors from the data analysis that influence management of the division of nursing. • List them as strengths / opportunities & achievement of goals & objectives or as weaknesses / threats that impede achieving goals & objectives. Define the current position & strength of the unit.
- 16. Cont… Phase 4: Goals& Objectives • Write realistic & general statements of goals. • Break the goals down into concrete written statements of objectives the division of nursing intends to accomplish in the next 3 to 5 years.
- 17. Cont… Phase 5: Strategies •Identify untoward conditions that could develop in achieving each objective. • Note administrative actions to avoid or manage them. • Use this information to modify goals & objectives, making contingency plans for alternative actions . • Define the organization needed for implementing strategic plans.
- 18. Cont.. Phase 6: TimeTable Develop a timetable for accomplishing each objective. This phase produces or becomes part of the plans.
- 19. Cont…… Phase 7: Operational& Functional Plans • Provide guidelines or general instructions that lead functional & operational nurse managers to develop action plans to implement the goals & objectives. • These include detailed actions, policies, practices, communication & feedback, controlling & evaluation plans, budgets, time tables, & persons to be held accountable.
- 20. Cont… Phase 8: Implementation Putthe plans to work.
- 21. Cont.. Phase 9: Evaluation •Provide for formative evaluation reports before, during, & after the implementation of operational plan. • Provide for summative evaluation that is quantified. Report actual vs. expected results. • Evaluate the strategic mission, & plan frequently. • Provide continuous feedback that can be used to modify & update the plan. • Use people who implement the plan to evaluate it.
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- 23. SWOT Analysis • Healthcare organizations must continually make adjustments to maintain optimal function (Christiansen 2002). • A number of different techniques can be used to determine where adjustments need to be made . • One essential technique involves a discussion of an organizations strengths , weaknesses, opportunities, and threats, commonly called SWOT analysis (Kahveci and Meada 2008).
- 24. Cont.. • SWOT analysisis a precursor to strategic planning and is performed by a panel of experts who can assess the organization from a critical perspective (Gibis et al. 2001). • This panel could comprise senior leaders, board members, employees, medical staff, patients, community leaders, and technical experts.
- 25. Definition SWOT analysis isan examination of an organizations internal strengths and weaknesses, its opportunities for growth and improvement, and the threats the external environment presents to its survival.
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- 28. Steps In SWOTAnalysis STEP 1 : • SWOT analysis involves the collection and evaluation of key data . • Depending on the organization, these data might include population demographics, community health status, source of health care funding, and /or the current status of medical technology . • Once the data have been collected and analyzed, the organization’s capabilities in these areas are assessed .
- 29. Cont… STEP 2 : •Data on the organization are collected and sorted into four categories: strengths, weakness, opportunities, and threats. • Strengths and weaknesses generally stem from factors within the organization, whereas opportunities and threats usually arise from external factors.
- 30. SWOT Matrix HELPFUL TOOBJECTIVE HARMFUL TO OBJECTIVE STRENGTHS Outstanding medical staff strong commitment to community mission excellent hospital facilities outstanding health care quality high level of organizational efficiency WEAKNESS Lack of adequate resources Lack of primary care network Shortage of critical staff OPPORTUNITIES Growing metropolitan community Increased managed care business Growing community health care programs THREATS Reduce government reimbursement Competition for speciality physicians Increased competition from health care provider networks Int ern al Ori gin Ext ern al Ori gin
- 31. Cont……… STEP 3 : Involvesthe development of a SWOT matrix for each business alternatives under consideration. For example, • say a hospital is evaluating the development of an ambulatory surgery centre (ASC). • They are looking at two options; the first is a wholly owned ASC, and the second is a joint venture with local physicians. • The hospital’s expert panel would complete a separate SWOT matrix for each alternative .
- 32. Cont… STEP 4: Involves incorporatingthe SWOT analysis into the decision-making process to determine which business alternative best meets the organizations overall strategic plan.
- 33. STRENGTHS SWOT analysis viewsstrengths as current factors that have prompted outstanding organizational performance . examples •Use of state -of-the-art medical equipment •Investments in health care informatics •Focus on community health care improvement projects •Highly competent personnel •Clear understanding among employees of the organization’s goals •Focus on quality improvement.
- 34. WEAKNESSES Weaknesses are organizationalfactors that will increase health care costs or reduce health care quality. Examples include aging health care facilities and lack of continuity in clinical processes, which can lead to duplication of efforts. Weaknesses can be broken down further to identify underlying causes.
- 35. Cont…….. • For example,disruption in the continuity of care often results from poor communication. Weaknesses also breed other weaknesses. • Poor communication disrupts the continuity of care, and then this fragmentation leads to inefficiencies in the entire system. • Inefficiencies, in turn, deplete financial and other resources.
- 36. Cont…… Other common weaknessesinclude • Poor use of healthcare informatics • Insufficient management training • Lack of financial resources • Organizational structure that limits collaboration with other health care organizations • Large numbers of uninsured patients or Medicaid patients can also negatively affect an organization’s financial performance, • Lack of relevant and timely patient data can increase costs and lower the quality of patient care.
- 37. OPPORTUNITIES SWOT analysis viewsopportunities as significant new business initiatives available to a health care organization. Examples •Collaboration among health care organizations through the development of health care delivery networks •Increased funding for health care informatics •Community partnering to develop new health care programmes •Introduction of clinical protocols to improve quality and efficiency.
- 38. THREATS Threats are factorsthat could negatively affect organizational performance . Examples •Political or economic instability •Increasing demand by patient and physician for expansive medical technology that is not cost effective • Increasing state and federal budget deficits •Growing uninsured population •Increasing pressure to reduce health care costs.
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- 40. How Strategic PlanningCan Be Used To Improve Nursing Management • To provide accountability & monitoring of performance. • To set up more formal planning programs • To integrate strategic plans with operational and financial plans. • To think and concentrate more on strategic issues. • To improve knowledge of and training in strategic planning. • To increase top management involvement and commitment.
- 41. Cont.. • To improvefocus on competition, market segments, and external factors. • To improve communication from top administration and nursing management. • To allow better execution of plans. • To be more realistic and rationalize. • To improve the development of nursing management strategies. • To improve the development and communication of nursing management goals.
- 42. Cont.. • To anticipatethe future and plan for it. • To develop the annual budget. • To focus on quality output that will improve nurses performances and productivity, decrease losses, and increase return on equity.
- 43. Conclusion • Strategic planningis often considered to be a goal- setting that is largely carried out by top management. • Operating nurse managers need to be trained in the strategic planning process. • Strategic planning has many benefits. It provides for objective consideration of strategic choices or options that are better matched with organizational goals & objectives.
- 44. Cont.. • With strategicplanning, the outlook becomes future oriented, resources are allocated systematically & rapid change is accommodated. • Strategic Plans must be dynamic. • Strategic plans are the blue prints that are to be updated as the environment changes.
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