In: Nursing
Question #2: The Hayes White Paper on Strategic assessments notes the importance of environmental factors guiding organizational strategy. What do you consider the importance of the organization’s environment in strategic planning and why is the environment so important in health care?
Strategic planning provides a roadmap to where the company is going, and directions on how to get there. It is used to guide all decisions, including those regarding capital, technology, staff and other resources. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), PEST analysis (Political, Economic, Social, and Technological), to define direction. Throughout the process, strategic planning is the formal consideration of an organization's future course. All strategic planning deals with at least one of three key business questions:
Strategic help us see the bigger picture when it is easier to get
lost in the day‐to‐day operational issues. Big picture issues
include:
We can then create proactive strategies to move from current state to desired state. Information technology is a large part of this equation. Therefore, it is important to be very familiar with the current state of IT, and what you will need in this area to meet future goals. Historically, organizations have developed strategic plans for three‐to‐five years. However, with healthcare reform, new technology, and staffing issues in the industry, the strategic planning process has become more frequent, and rightly so.
The importance of the organization’s environment in strategic planning
Review/Develop Vision &
Mission
Although many organizations have created vision, mission, goals and
objectives, these elements need to be reviewed on a continuous
basis. The reason lies in the ever‐changing environment and
business constraints forced upon organizations through government,
payors, competition, physicians, patients, vendors etc. Each
internal department’s vision and mission must be aligned and
supportive of the overall business strategy. The mission of an
organization is the reason it exists. Usually the mission takes the
form of a statement, which conveys a sense of purpose to the
employees, patients, physicians and the community. The mission sets
the tone for goals and objectives.
Information Technology
Strategic Planning
There is a mutually dependent relationship between the
organizational strategic plan and the information technology
strategic plan. It is essential that when creating the overall
strategic plan, a parallel process is performed to create or adjust
the IT strategic plan. They inform each other. For example, if an
organization’s leaders decide to start an accountable care
organization (ACO), they need to understand the ability of the IT
group to support it. Any organization planning to develop new
delivery models such as home health expansion, accountable care
processes, etc., will require both operational and information
technology strategic changes.
Business and Operational
Analysis
One of the key objectives of strategic planning is to understand
internal strengths and weaknesses as well as external threats and
opportunities, i.e. a SWOT analysis. It is critical to engage
stakeholders from across the organization – and vendors as well ‐
to provide their points of view. This involvement will not only
improve your plan, it will create organizational ownership, which
will be important for executing and sustaining the
plan.
Look at these aspects from an internal and external
perspective:
Develop and Select Strategic
Options
All possible strategies should be developed based on the inputs.
Then the list should be narrowed down to strategies that are within
the guiding priniciples of the organization. Guiding principles
identify the “ground rules” and parameters that will inform
decision making for your organization. For example, will your
organization consider merging with or acquiring another
organization to meet its goals? Do you want to outsource certain
functions? Another decision‐making criterion is your organizational
capacity. For example, if a goal is to increase revenue in
orthopedics by 7%, are there enough physicians to support that
increase in volume? Do they specialize in the services that will
meet that goal?
Establish Strategic
Objectives
This step narrows the list even more by applying various models
(financial, etc.) to each strategy to determine the effect it will
have on the organization. This step is also where key measures and
timelines are established or validated. Once the strategies are
tested in this way, it can be put together to form the strategic
plan. The plan’s components should be specific, measurable,
achievable, realistic and time‐bound (SMART).
Strategy Execution
Plan
Now a plan must be developed to implement the chosen strategic
options. To be successful, you will need organizational ownership
of the plan, which includes not only executive sponsorship, but
also the active involvement of all staff members. Communicate the
plan to all levels of the organization. Find champions in all
areas. Define what is “in it for them.” The clear (SMART) goals and
staff involvement in the initial committees will help you now.
Establish Appropriate Budget
and Resource Allocation
Quite often, once the strategic assessment and plan is complete,
leadership may not be able to allocate or assign appropriate
funding, staffing or other resources to specific initiatives. The
result of improper or inadequate budgets and staffing usually ends
with failed strategic initiatives. It is critical to receive
leadership commitment on budget and resources before execution of
the strategic plan.
Execution
Review
One of the critical success factors for effective strategy
deployment is constant and ongoing progress reviews. Appropriate
reporting mechanisms must be included in the deployment. When
issues, challenges, deviations or obstacles are identified,
decisions and remediation are necessary – some which may even
change the strategic direction. Therefore, it is important to
decide who is involved in the review process, and what exactly is
reviewed.
Maintaining a safe environment reflects a level of compassion and vigilance for patient welfare that is as important as any other aspect of competent health care.