Smoky Hill Family Practice Residency April 5, 2010 Darrel McCool, FACMPE Business Planning

What is Business Planning? Planning is a Learning Process. Business planning is the framework by which an organization’s ideas, goals, and needs are translated into actions plans. Planning is obtaining consensus on the direction and priorities of the organization.

Why Plan? Prepare for the inevitable, Preempt the undesirable, Control the controllable.

Strategic Planning “If you don’t know where you are going any road will get you there.” -The Cheshire Cat

The Value of Strategic Planning Successful organizations plan-The most successful write down their plans. The development of a written strategic plan establishes a single document of expectations for: The Manager-A written strategic plan helps establish a job plan for success and job security. The Stakeholder-A written strategic plan gives reassurance that their goals and program desires are being addressed by management.

The importance of a plan! Save time in the long run Clarify expectations Reduce conflict Improve efficiency Enhance morale If, an only if, the Plan is communicated effectively and applied consistently

Six components: Organizational goals and objectives Individual performance goals and objectives Employee performance measurements Performance reviews Ongoing feedback and coaching Recognition and rewards

Action Plan A written document that summarizes the strategies for the future direction and articulates the plan for achieving the objectives.

Action Plan Goals & Objectives (Develop Consensus) SMART Goals (Specific, Measurable, Achievable, Realistic, Time-Bound) Strategies/Tactics (Specific) This is where the rubber meets the road! Timeline Budget Responsible Person Follow-up

Responsibilities Physician owners: Develop policy through consensus Focus on the big picture Provide resources Communicate effectively Speak with one voice Support and hold management accountable for meeting goals

Responsibilities Management: Establish, implement, monitor and adjust business plan with physician owners’ guidance. Keep physician owners advised of progress.

Words of Wisdom: “Superior performance….is guided by wise leadership, sound management, good clinical practices and a great team of employees at all levels” Performance and Practices of Successful Medical Groups: 2001 Report based on 2002 data.

Words of Wisdom “Strategy is the bridge between the past of organizational capabilities and a future of new capabilities and business opportunities.” -Paraphrase Henry Mintzburg

Questions