Question

Perform a SWOT analysis to improve a process within healthcare organization. Defend your analyses of the different elements of the SWOT analysis. Be sure to include elements associated with a cost-benefit analysis and the ROI of the change. Be specific in your observations for each SWOT quadrant. Then discuss what you would do to ensure all four steps of the planning process are followed (analyze operations and environment, generate strategic alternatives, deploy strategies, and measure and adjust).

Answer 1

Strategic planning demands realistic and objective assessment. This can be done by using SWOT analysis. SWOT means STRENGTHS, WEAKNESSES, OPPORTUNITIES and THREATS of your situation.

Sketch the quadrants.

Create a four-part grid on a single piece of paper to provide an overview that helps visualize the relationships

Identify and list the key elements in each quadrant. Get these down on paper as the first step.

Internal: Strengths & Weaknesses

The top two sections (STRENGTHS and WEAKNESSES) both originate internally. These are things that you can control. Strengths are helpful; Weaknesses are harmful.

STRENGTHS: List of your capabilities and resources that can be the basis of a distinct competitive advantage. Ask: What are the most important strengths? How can we best use them and capitalize on each strength? Strengths could include:

• a new and/or innovative service
• capabilities or cost advantages
• cultural connections
• extraordinary reputation
• other aspects that add value
• special expertise and/or experience
• superior location or geographic advantage

WEAKNESSES: What areas need improvement (or should be avoided)? Ask: What would remove or overcome this weakness? Weaknesses can sometimes be the absence of certain strengths, and in some cases, a weakness may be the reverse side of one of your strengths. Weaknesses might include:

• absence of marketing plan
• damaged reputation
• gaps in capabilities or service areas
• lagging in technology
• management or staff problems
• own known vulnerability
• poor location or geographic barriers
• undifferentiated service lines

External: Opportunities & Threats

The lower two sections (OPPORTUNITIES and THREATS) both originate externally. These are things that you cannot control. Opportunities are helpful; Threats are harmful.

OPPORTUNITIES: In addition to new or significant trends, what other external opportunities exist and how can we best exploit or benefit from each? Examples might include:

• a market vacated by a competitor
• availability of new technology
• changes in population profile or need
• Competitor vulnerabilities
• lack of dominant competition
• new market segment that offer improve profit
• new vertical, horizontal, or niche markets

THREATS: Can include anything that stands in the way of your success. No practice is immune to threats, but too many people miss, ignore or minimize these threats, often at great cost. Ask: What can be done to mitigate each threat? Can a threat become an opportunity? Threats could include:

• a competitor has an innovative product or service
• a new competitor(s) in your home market
• adverse changes in reimbursement or regulations
• changing insurance plans and/or contracts for major area employers
• competitors have superior access to channels of distribution
• economic shifts
• loss of key staff or associates
• new or increased competition
• seasonality
• shifts in market demand or referral sources

Seven simple rules for successful SWOT analysis

1. Be Specific: Avoid gray areas, vague descriptions or fuzzy definitions.

2. Be Objective: Ask for input from a well-informed but objective third party; compare it with your own notes.

3. Be Realistic: Use a down-to-earth perspective, especially as you evaluate strengths and weaknesses. Be practical in judging both sections.

4. Apply Context: Distinguish between where the organization actually is today, and where it could be in the future.

5. Contrast and Compare: Analyze (realistically) in relation to your competition i.e. better than or worse than your competition.

6. Short and Simple: Avoid needless complexity and over-analysis.

7. Update your marketing plan and goals: Once the key issues have been identified, define the action steps to achieve change.