Strategic Planning and Business Plan Please respond to the followi.docx

"Strategic Planning and Business Plan" Please respond to the
following:
Ascertain the importance of strategic planning for an
organization. Next, suggest one (1) strategy you may use to
structure the strategic planning session for a not-for-profit mid-
sized health organization that is competing with several for-
profit facilities in the area. Then determine your approach to
communicate the mission, vision, and value statements for the
strategic planning. Provide a rationale for your response.
Use the Internet or Strayer databases to research articles on
business plan creation within health organizations. Next, based
on your research and analysis, recommend three (3) best
practices of business plan creation and support your response.
HSA525 Week 10 Script
Strategic Planning and the Healthcare Financial Manager
Creating a Business Plan That Is Strategic
Slide #
Scene/Interaction
Narration
Slide 2.1-2.4
Scene 1:
Introduction 1
HSA525_10_S1_ProfQuan-1:
Hello everyone.
Welcome to week ten of the course! We have covered a
significant amount of information throughout the course. Up to
this point, we have taken a look at the various “pieces of the
puzzle” or individual components that are critical to health
financial management. Today, however, we will focus on
strategy. The difference between strategy and what we have
covered thus far is simple; strategy enables us to view the
organization holistically, as opposed to each individual element
that makes up the financial picture of the organization.

It is often stated that failing to plan is the equivalent of
planning to fail. In the latter part of the 1970s, a new concept of
retail clinics emerged in the United States as a means of
reducing costs, improving quality, and eliminating barriers to
accessing care to those who had limited access or those who
were unintentionally disenfranchised from the health system.
The concept was known as a “doc in the box” because of the
ease in which patients can receive care when they were not able
to get appointments with their primary provider or in the
absence of a primary provider. The idea was to relieve the
overburdened emergency departments for non-emergent care
needs. The growth of these clinics rapidly slowed due to
changes in reimbursement structure.
HSA525_10_S1_Tyler-1:
Professor, the idea seems to be quite innovative. I would think
that those clinics would be a very good solution to the problems
that you have indicated. What accounts for the failures of these
changes? How did reimbursement structure change so much so
that these clinics did not survive?
HSA525_10_S1_Sophia-1:
I agree with Tyler. I, too, would have imagined that these
clinics would solve the challenges that we saw during this time.
You both have great points…but, it is important to note that the
structure of reimbursement is critical to the clinics’ ability to
remain viable.
The increased costs of providing services to patients opposite
normal operating hours, expenditure relative to marketing and
advertisement, and significant volume fluctuations meant that
the operating costs of these clinics were higher. Payers failed to
recognize the operating model of these urgent care facilities and

only reimbursed at the primary care rates, forcing many of the
clinics to close or cease its retail practices. Many would argue
that the “retail” concept was an idea “ahead of its time”. Others
would suggest that much of the challenges can be traced to a
lack of strategic planning.
So, professor, are we not seeing more of this type of clinic
nowadays? For instance, the Minute Clinic operated at various
CVS pharmacy locations seems to fit the description of the “doc
in the box” concept.
Absolutely, Tyler…we have seen a re-emergence of the concept.
Today, the retail clinic concept has re-emerged as a viable force
at achieving the goals of balancing costs, quality and access.
Today’s retail clinics are viewed as a robust industry providing
a service that is not only desired by the healthcare consumer,
but embraced by a more informed payer system.
So, is it safe to say that given the challenges that the payers are
having with the high costs of care, many are now buying into
the concept as a means of reducing costs?
Yes, the idea of alternative ways of providing care using more
cost effective means is definitely appealing to the payers. That
is precisely why I asserted that the idea was really ahead of its
time during initial introduction of the retail clinics.
Are there any other questions at this time?
No, this is very interesting.

I agree. It will be interesting to see how well these clinics
perform over the next few years.
Slide 3.1-3.5
Scene 2:
Introduction 2
In today’s lesson, we will discuss four topics:
organizational mission, vision, and values;
approaches to strategic planning;
the strategic planning cycle; and
constructing the business plan.
Strategic planning is an essential function for healthcare
organizations, particularly given the dynamics of an ever-
changing environment. Managing rapid, complex, and often
discontinuous change requires organizational leaders to be
proactive and progressive thinking. The purpose of strategic
planning is transformational; it identifies characteristics of the
organization and the environment in which it operates in order
to establish goals and develop approaches to achieve those
goals.
Strategic planning involves clearly defining why you exist
(mission), the direction of the organization (vision), and the
manner in which you will get there (values). Strategic planning
focuses on long-term, mission-driven goals and establishes the
best approaches for achieving those goals. A strategic plan sets
measurable milestones to guide ongoing adjustments in course
and action.
Professor, in your example of the “doc in the box” concept,

what could we infer about the strategic plans of those
organizations? Is it fair to assume that their plans were not
effective or their mission was not well defined?
I think that is a very difficult question to answer. Part of the
answer may lie in the fact that their strategic planning process
had unidentified gaps. The question one may ask is…did the
organizations effectively assess the threats or potential risks?
So, I would conclude that there were many variables that
affected the viability of the organizations.
Thanks Professor…
A practical assessment of the most salient internal and external
factors impacting the organization enables for an informed
strategic planning process. The organization’s mission, vision,
and values are fundamental elements of the strategic planning
process.
There are several tools used in the strategic planning process.
One very commonly used tool is the SWOT analysis. The SWOT
analysis consists of an objective review of the strengths,
weaknesses, opportunities, and threats that affects the
performance of the organization.
Professor, what determines a strength, weakness, opportunity,
or threat?
Good question….keep in mind that strengths and weaknesses
are both internal variables to the organization. For instance, an
organization’s strength may include a state of the art facility,

whereas its weakness may be lack of training for staff
development. Both of these factors are within the control of the
organization. On the other hand, an opportunity may include
increased consumer demand and a threat may be increased
demand for expensive medical technology. The latter two
factors are not controlled by the organization.
OK…I have a much better understanding. Thanks…
My pleasure….
The strategic planning process has garnered a significant
amount of scrutiny in recent years for a lackluster response to
the turbulence and uncertainty that exists in the healthcare
environment. The strategic cycling model addresses many of the
shortcomings of traditional strategic planning in a dynamic
environment. The cycling model facilitates a deliberate and
continuous assessment of the organization's mission, vision, and
values. Moreover, the strategic planning process directs
activities in the construction and marketing of the
organization’s business plan.
Slide 4.1-4.21
Scene 3:
Topic 1: Organizational mission, vision, and values
·
Mission Statement
·
Vision Statement
·
Values Statement
·

Organizational Culture
Now let’s talk about
organizational mission, vision, and values
.
Organizational leadership plays a key role in facilitating the
strategic management function and integrating those functions
into the organization’s mission, visions, and goals. Every
organization exists for a reason and successful organizations are
able to interpret effectively interpret those reasons through a
well-defined mission statement.
Professor, it has been my understanding that many organizations
fail to thrive because of a poor mission or lack of a mission
statement. Would you agree?
I would absolutely agree. A mission is considered the
foundation of strategic direction. The mission serves as a guide
for all the organization’s decision making, including the
allocation of resources. The mission should be communicated
throughout the organization through a mission statement. The
mission statement must contain measurable, definable, and
actionable content.
So, professor….what then is the difference between an
organization’s mission, vision, and its values?

While the mission statement answers the questions – who are we
and why we exist as an organization – the company’s vision
statement addresses the question of – who we desire to become.
The vision statement describes the future state of the
organization.
Every organization has core values, whether the values are
implicit or explicitly stated. The values of the organization
compel the behaviors used in achieving the organization’s
mission. If the behaviors are counter to the values of the
organization, even if the mission is achieved, the organization
has failed.
The organization’s values shape its culture and ultimately
define the character of the organization. In order to build a
coherent culture, the organization must comprise of individuals
who share a core set of value and a willingness to promote those
values.
So, basically the organization’s value is its moral compass.
Exactly….
Topic 2: Approaches to strategic planning
·
SWOT
·
PEST
Now let us switch our attention to
strategic planning

.
Strategic planning is a systematic, formally documented
decision-making process designed to ultimately guide the
organization to achieving its mission and vision. Each step in
the strategic planning process involves information gathering,
reflective thinking, and communication. While there is no single
formula to completing the strategic planning process; there are,
however, guiding principles that are essential to optimizing the
value of strategic planning. The process is continuous and ever-
evolving.
Strategy allows for the organization to move from its current
state to its desired state.
Professor, when you say that the process is continuous, does it
mean that changes are frequently made to the plan?
Yes, periodic assessment of the strategic planning process must
be conducted and appropriate changes made in order to reflect
the changes occurring within the environment in which the
organization operates and competes.
How does this affect decision-making? Do frequent changes
have a negative effect on operations?
Decision consistency is important to effective strategic
planning.
However, having the ability to adapt to changes is crucial for
long-term success of any organization.

Analyzing and understanding the environment supports decision
consistency and enhances the organization’s ability thrive. Two
very commonly used tools in assessing the environment are the
SWOT analysis and the PEST analysis.
The SWOT analysis is an in-depth examination of the
organization’s strengths, weaknesses, opportunities, and threats.
The strengths and weaknesses are considered internal factors
affecting the organization, while the opportunities and threats
are external influences. The strengths and weaknesses can be
controlled by the organization, unlike the opportunities and
threats.
Scanning the external macro-environment using the PEST
analysis allows for the assessment of the political, economic,
social, and technological factors that affect the organization’s
long-term activities and performance.
Is the PEST analysis more conducive to meeting the needs of a
healthcare organization given its focus on external influencers?
Actually, some organizations are using the PEST analysis to
supplement the SWOT analysis.
I think that makes sense given the external environment of
health organizations.
Topic 3: The Strategic Planning Cycle
·

Planning
·
Execution
·
Monitoring
·
Assessment
Not let us continue our discussion with the topic of the
strategic planning cycle
.
The Strategic Planning Cycle consists of four interrelated
components:
Planning
— A well-constructed strategic plan begins with a rigorous
plan.
Implementation
— The execution of the overall plan
Monitoring
– involves the use of quantifiable indicators to gauge
performance and plan effectiveness
Assessment, or Review
— A key component of the strategic plan cycle. Assessment
aids managers in determining the results of tactical actions in
the overall context of the organization’s mission, vision, and
values.
The strategic planning cycle integrates various aspects of
planning into one unified and coherent process. Five key
questions are answered in the strategic planning process. The

questions are:
Where do we want to go?
How do we get there?
How do we measure our success?
How did we do? And finally,
How can we improve?
Professor, given the questions…..is there any one aspect of the
planning cycle that is considered more important?
These questions are critical to developing and executing the
strategic plan. Each aspect of the cycle plays a crucial role in
developing and amending the overall strategic plan. The
strategic planning cycle entails four interrelated functions –
planning, implementation, monitoring, and assessment. Ideally,
monitoring should take place initially upon implementation and
should be simultaneously conducted with each function of the
cycle in order to identify gaps and opportunities for
improvement.
I would say that because each function is so interdependent
upon the other functions, they are equally important.
That’s a good point, Tyler.
Topic 4: Constructing the Business Plan
·
Organization plan

·
Marketing plan
·
Financial plan
Finally, let us focus our attention to the last topic today,
constructing the business plan
.
Perhaps one of the most complex undertakings facing leaders of
health organizations is the crafting of a business plan. A
business plan is comprehensive and serves to align the
organization’s operational, financial, and marketing plans.
Business plans offer a blueprint that enables for the
establishment of a foundation upon which the organization can
tailor it mission, focus its vision, and incorporate its values. As
the organization grows, a solid business plan can aid in
promoting its accomplishments. On the other hand, a poorly
constructed plan can impede further growth and create barriers
to long-term success.
Professor, how does a business plan relate to a strategic plan?
Great question!
A strategic plan is actually a type of business plan. They differ
in terms of the purpose each serves. A business plan is
generally considered and externally focused document that
provides insights about a company to potential investors.
Whereas, a strategic plan is a tool used internally as a guide for
the organization’s strategic direction. Another way to look at it
is….a business plan answers the questions who and what, while

a strategic plan tells us how and when.
Thanks Professor….
My pleasure.
Business planning can help leaders to predict the inevitability
of change and allow of contingency plans to address those
inevitable changes. Because of the fluid nature of the healthcare
environment, many health organizations update the business
plans in a three to five year timeframe.
Is the three-to-five year standard? What happens if changes
occur more frequently than anticipated? Will the business plan
change more frequently in order to address those changes?
That is where effective planning comes into play. Business
planning should include forecasting, which will anticipate
changes. The main point to remember is that business planning
is a continuous process. There are no steadfast rules to the
three-to-five year period, but it is pretty standard and is based
in part on the changes within the environment.
Thanks Professor…that helps
There are various components to the business plan. The business
plan should include an organization plan, marketing plan, and a
financial plan.

What is the overall purpose of the organizational plan?
The organization plan should include a description of the
management team.
A description of the roles of the individuals is important to
demonstrating the competency of those who are entrusted to
lead the organization. In addition, it is important that the
management team shares a common vision, complementary
attributes, commitment, and the fortitude to stay the course even
amongst the most challenging circumstances.
The marketing plan should include a market analysis.
Professor, what do we expect to find in a market analysis?
The market analysis should contain a description of the
industry, including the current size and historic growth rate.
Also, you will find information about the target market and
distinguishing characteristics of that market. Demographics of
the market as well as results from a needs assessment for that
particular market are included in the market analysis.
Competitor information is another very important aspect of the
market analysis.
The financial plan is very important to the investor. The
financial plan must outline a forecast of operations. Financial
statements are included to provide a solid picture of the
business’ financial acuity. The financial statements should
include both historical and projected information. The
forecasted information may be simple, requiring only a

statement of cash flow, or more extensive to include a balance
sheet and income statement.
Slide 5.1
Check Your Understanding
Directions: Choose the best answer then click the submit button.
Question: Which tool is used in strategic planning to assess an
organization’s internal strengths and weaknesses and external
opportunities and threats?
A) PEST analysis
B) Needs assessment
C) Balanced Scorecard
D) SWOT Analysis
Answer: D
Feedback: SWOT is the acronym for strengths, weaknesses,
opportunities, and threats. A SWOT analysis enables for the
identification of factors affecting the organization and the
environment in which it operates.
Please go to the next slide.
Slide 5.1
Check Your Understanding
Directions: Choose the best answer then click the submit button.
Question: Which of the following best describes the difference
between organizational vision and organizational values?
A)

A vision is a concrete plan for the future and values are
organizational ethical standards
B)
A vision is a look at what an organization might be like in the
distant future and values are organizational ethical standards
C) A vision is a standard of ethics and values are plans for the
distant future
D) A vision is a statement of the primary emphasis of an
organization and values are key points that a company will
strive for in the distant future
Answer: B
Feedback: While both A and B describe visions as a look into
the future, visions are not concrete plans as visions may change
as the needs of the organization or its customers change.
Therefore, B is the best choice.
A.
Visions are not concrete plans as visions may change as the
needs of the organization or its customers change.
B.
Correct
C.
distant future and values are organizational ethical standards.
D.

distant future and values are organizational ethical standards.
Slide 6.1-6.2
Summary
Planning is essential for health care organizations to remain
viable in a highly competitive, ever-changing economic, social,
political and technological environment.
Health organizations can become vulnerable at any stage of
planning; consequently, monitoring plans and making
appropriate adjustments become as critical a task as the
planning itself. Failure to implement and effectively monitor the
strategic planning process is a common challenge and one of the
largest stumbling blocks to achieving the organization’s
intended goals. As healthcare organizations continue to deal
with appreciable changes and uncertainty in the environment,
strategic planning will continue to evolve. Essentially, strategic
planning is more than a process…it is a systematic and
deliberate plan to review the organization’s current position and
to identify the desired future state of the organization. In
addition, strategic planning enables management to recognize
and explicitly state key relevant assumptions about needed
revisions to the strategic plan. Health organizations need
effective strategy in order to align actions to support its
mission, vision and encourage its values throughout the
organization.
Thanks for another great class…..this concludes our lecture.
Are there any other questions?
No questions….
Not at this time… Thanks Professor….

You are welcome!
Congratulations that you have completed all the lectures for this
course! I hope you enjoyed the lessons!
Good luck with your other courses and your future career in the
field of health financial management!
These are some links the professor suggested
What is a Business Plan
This week we are studying business plans. Most successful
organizations have a plan. It isn’t set in stone but will change
as the needs of the company do. The first link discusses the
reasons you need a business plan. Most of these really make
sense when you look at them. The second link offers another
point of view on the purpose of a business plan. The last link
looks at what makes a good business plan. As you read over this
material, think about what you would include in your business
plan and why.
http://www.entrepreneur.com/article/83818
(Reasons for)
http://sbinfocanada.about.com/cs/businessplans/a/bizplanwhy.ht
m
(More reasons)
http://www.masterplans.com/help/what-makes-a-good-business-
plan
(What makes

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