Question

Briefly describe the Planning Process in terms of how you would implement as a future health care leader.

In your description, include impact of Strategic, Operating and Financial plans on the process.

Answer 1

All successful plans have four major features:

• Organize processes, procedures, and staff for efficient and effective work.

• Influence and lead team members or employees who report to you.

• Monitor work progress, schedules, and budgets.

• Identify problems and suggest corrective actions.

The following section explores the importance of planning, the basic types of plans healthcare managers work with, the step-by-step way plans are created, and a host of special tools and techniques that can make plans more effective and efficient for everyone who utilizes them.

In today's demanding healthcare workplace, your department, team, or workgroup needs to consistently meet goals both large and small to help improve the overall company as well as your specific group. Meeting—and, hopefully, exceeding these goals and expectations—enables your department and company to become ever better at what they do, staying one step ahead of the competition. Healthcare organizations face pressures and challenges from many sources, all of which increase the importance of good planning. External forces include competition, increased government regulations, ever-more complex technologies, the uncertainties of a global economy, and rising labor and resource costs. Internal forces include the demand for greater efficiency, increased diversity in the workforce, and the introduction of new processes, structures, and work arrangements. In today's ever-changing work environment, good planning offers a number of benefits and advantages for your employees, your teammates, and even your own career.

Greater Focus and Flexibility

Good planning improves focus and flexibility for both you and your organization.

• Focus: An organization with focus knows what it does best, knows the needs of its customers or patients, and knows how to serve them well. An individual with focus knows where he or she wants to go in a career or situation and is able to keep that objective in mind, even in difficult circumstances.

• Flexibility: An organization with flexibility is willing and able to change and adapt to shifting circumstances and operates by looking toward the future (rather than the past or present). An individual with flexibility balances his or her career plans with the problems and opportunities posed by new and developing circumstances—both personal and organizational.

The Planning Process

At its most basic, planning is decision making. When you plan, you use information to make plans that address significant problems and opportunities. Figure 5–1 shows a typical approach to decision making as applied during the planning process. The planning process begins with identification of a problem and ends with evaluation of implemented solutions. This section covers each step of the planning process in detail, addressing the key responsibilities of managers at each phase.

Step 1 – 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.  

Step 2 ‐ 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.  

Step 3 ‐ 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?

Step 4 ‐ 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).  

Step 5 ‐ 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.  

Step 6 ‐ 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.  

Step 7 ‐ 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.