1. Strategic planning
Dr. Abad Alzuman
Bus433

2. Learning Objectives By the end of this week, you will be able to:
Describe strategic planning.
Discuss the importance and purpose of strategic planning.
Understand a SWOT analysis and the strategic planning process.
Identify methods to monitor strategy execution.
Identify the role of the manager in the strategic planning process.

3. Defining Strategic Planning
Strategic planning is:
“the process of identifying a desired future state for an organization and a means to achieve it. Through an ongoing analysis of the organization's operating environment, matched against its own internal capabilities, an origination's leadership is able to identify strategies that will drive the organization from its present condition to that desired future state”

4. What is the Purpose and Importance of Strategic Planning?
The purpose of Strategic Planning:
To identify market forces and how they may affect the organization and to determine an appropriate strategic direction for the organization to take that will defeat those factors or utilize their potential.
Strategic planning serves to focus the organization and its resource allocation where resources can be allocated appropriately in order to reach a desired future state.

5. The planning process
The strategic planning process consists mainly of two interrelated activities:
The development of the plan is most often done with multi-year time horizon (e.g years).
The organization's Strategy execution is done on a continuous basis and is the critical factor in management of the organization ‘s strategic intentions, providing continual feedback for the development of any future plans (see the following figure)

7. The Planning Process
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats):
provides a foundation for strategy development. It aims to identify the internal strengths and weaknesses for an organization, along with external market opportunities and threats.
SWOT analysis incudes three distinct yet interrelated components:
The market assessment,
The statement of the mission, vision, and values of the organization,
And, the organizational assessment.

8. 1-Market Assessment
The development of the market assessment may be the most complex and time consuming section of the strategy plan.
In this component, all aspects of the market must be examined whether they represent opportunities or threats for the organization and to determine their future implications for the organization.
One of the most common models of market assessment is the Five Forces Model.

9. 1-Market Assessment
In the Five Forces Model, five market forces where identified, when combined, determine the attractiveness of competing in a particular market.
For healthcare, this model can be adapted to analyze the interactions between:
The power of the healthcare workforce,
The power of consumers and payers,
Innovations in technology,
The regulatory environment,
And, competitive rivalry.

10. Five Market Forces Model
competitive rivalry
regulatory environment
Innovations in technology
consumers and payers
HC workforce

11. 1-Market Assessment
The power of the healthcare workforce: can have a significant strategic implication for any healthcare organization, as the workforce composed of the frontline of care givers in providing services.
Therefore, an organization should look at the availability of all sub-sets of healthcare providers that are critical to its success.
For example, a nursing shortage may affect a hospital’s ability to add beds to meet growing demand for services. A shortage of radiology technicians may affect an organization's opportunity to offer new state of the art technologies.

12. The power of consumers and payers: is becoming a more significant market force and one that has required a dramatic shift in the way the industry offer services.
Today’s consumers are demanding more and more from their healthcare providers on all levels (e.g. physicians, payers, hospitals), both in term of availability of specific services or in the delivery of those services.
Before, healthcare organizations viewed physicians as the primary customers; without them hospitals can not provide services. However, in today’s world, the patient is becoming the central focus of customer service.

13. The power of consumers and payers (continued):
Therefore, the potential impact of this shift to patient-centric model needs to be considered when developing future strategies.
Consumers can influence the healthcare market in other ways as well. Different communities have different healthcare needs (e.g. primary care, health education).
Therefore, by identifying specific community needs, healthcare organizations can better target their services and potential growth opportunities.

14. The power of consumers and payers (continued):
As in the power of payers, a healthcare organization that relies on those payers must stay well-informed of their needs and demands and how each may affect future opportunities and strategies.
For example, a payer that is a late adopter of new technologies would be a significant threat to an organization that strives for a competitive advantage by being first to market with the adoption of new medical technologies.

15. Innovations in Technology: is considered a another market force
Innovations in Technology: is considered a another market force. These technologies may represent the threat of substitute products such as new technologies often replace/substitute standard operations and services.
For example, the introduction of (PACS) Picture Archive Communication System significantly reduces the need for storage space for films and the medical staff to maintain those areas. Also, Robotic technologies may reduce the need for clinical staff.
As these technologies become available, their potential impact on standard operations and systems need to be considered in strategy development.

16. The regulatory environment: on all levels; locally and internationally; needs to be monitored for its effect on strategy development.
For example, the quality of care measures and health insurance policies can influence a particular healthcare organization’s strategy and need to be monitored for their potential impact.

17. Competitive rivalry: is a another market force that probably given the most attention in most organizations’ strategy development. Strategically savvy organizations always track their competitors moves and intentions.
This can be done for example through their market activities or ongoing discussions with your won physicians and suppliers which often lead to an indication of competitors’ strategies.
Once their strategic intentions have been identified, market opportunities for and threats against your own organization can be further examined.

18. 2-Mission, Vision, Values( SWOT)
Mission, Vision, and Value (MVV) are reviewed as part of the strategic planning process to ensure they continue to be aligned with the organization's future market environment and to help identify future desired strategic directions.
The mission of any organization is its enduring statement of purpose. It aims to identify what the organization does, whom it serves, and how it does it.

19. A vision statement strives to identify a specific future state of the organization, usually an inspiring goal for many years down the road.
The values statement should help define the organization's culture-what characteristics it wants employees to convey to customers.
Although the mission statement is the most enduring (lasting) of the three, each of these statements may be altered over time to adapt to the environment.

22. MISSION
Kingdom Hospital/Consulting Clinics are dedicated to deliver high quality cost-effective healthcare with a sense of compassion and dignity while upholding the best scientific standards in medicine.
VISION
To be the region's premier provider of high quality personalized healthcare services utilizing cutting edge technology and state-of- the-art medicine
VALUES
Our C-A-R-E Values
Compassion: We treat our patients, their families, friends, our staff and all other stakeholders with kindness and empathy. We maintain a personal and caring touch in everything we do.
Accountability: We ensure the implementation of Quality Assurance programs in accordance with the highest international standards upheld by leading healthcare organizations.
Respect: We recognize and respect the value, diversity, dignity and rights of each other, those we serve, and the community in general.
Excellence: We value superior performance in our profession through continuous learning to consistently foster rapid and safe clinical innovation for the betterment of our medical and surgical practice. We recognize the merits of a coherent organizational structure that nurtures interpersonal relationships and promotes teamwork.

23. About Mayo ClinicMayo Clinic Mission and Values
To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research.
Primary value
The needs of the patient come first.
Value statements
These values, which guide Mayo Clinic's mission to this day, are an expression of the vision and intent of our founders, the original Mayo physicians and the Sisters of Saint Francis.
Respect Treat everyone in our diverse community, including patients, their families and colleagues, with dignity.
Compassion Provide the best care, treating patients and family members with sensitivity and empathy.
Integrity Adhere to the highest standards of professionalism, ethics and personal responsibility, worthy of the trust our patients place in us.
Healing Inspire hope and nurture the well-being of the whole person, respecting physical, emotional and spiritual needs.
Teamwork Value the contributions of all, blending the skills of individual staff members in unsurpassed collaboration.
Excellence Deliver the best outcomes and highest quality service through the dedicated effort of every team member.
Innovation Infuse and energize the organization, enhancing the lives of those we serve, through the creative ideas and unique talents of each employee.
Stewardship Sustain and reinvest in our mission and extended communities by wisely managing our human, natural and material resources.

24. 3- Organizational Assessment
Once we have an idea of what the market looks like and understand the (MVV), it is time to look at the organization to examine its strengths and weaknesses and how it may sustain a competitive advantage.
The organizational assessment contains both: quantitative and qualitative components.

25. The quantitative section consists of:
the organizational volume forecast,
and an assessment of the financial condition.
The qualitative section focuses on:
past strategic performance,
and leadership’s interpretation of the organization's core capabilities.

26. 3- Organizational Assessment: quantitative section
The organizational volume forecast is initiated by identifying the organization's service area-usually a zip code-defined area where 70-80% of its patients are drawn from, and determining the population use rates for applicable service lines. These data usually collected for several years and can then be forecasted out several more years simply by using mathematical trend formula.
Financial condition where several years’ worth of key financial indicators should be analyzed to highlight additional strengths and weaknesses of the organization (e.g. net income & net revenue).

27. 3- Organizational Assessment: qualitative section
Strategic performance where a review of the organization's past strategic performance should be included as part of future strategy development (e.g. whether past strategies accomplished their intended goals).
Organizational core capabilities are subjective strengths and weaknesses that need to be identified for strategy development where planners usually have to rely on surveys, focus groups, or interviews with the leadership of the organization to gather this information. This information will be critical input for the plan’s overall success.

28. Strategy Identification and Selection
SWOT analysis serves as input for the next step in the process: strategy identification and selection.
Strategy identification usually begins with the baseline scenario developed for the volume forecast (scenario development).
From this scenario analysis, several strategic directions for the organization may emerge.

29. The strategic direction is the goal that the organization desires to accomplish within the planning time frame.
As each scenario may have different probabilities for success and may require different levels of resource investment, the specific scenario that will be ultimately chosen will often depend on the organization's tolerance for risk.

30. Once a strategic direction is chosen, specific desired outcomes should be targeted and strategies to accomplish this identified.
Remember. ..Strategy is all about making choices, a successful strategic plan is both focused and executable.
At this stage of planning, the organization’s leadership must determine its ability to successfully execute the strategies it has identified.
The final step in the actual development of the strategic plan is the creation of specific tactical plans for each strategy, which are necessary for translating the plan into action answering who, what, when, where, and how questions.

31. Rollout and Implementation
With the development of the tactical plans, the strategic plan is complete. The plan then is to present it to the board of directors for approval and endorsement and is then rolled out across the organization.
Rollout of the plan has two main steps:
The plan is communicated at all levels of the organization, to gain the support necessary for successful execution of the strategy.
Supporting plans such as the financial and budgeting, operating, marketing, capital, and master facilities plans are developed.

32. Outcomes monitoring and Control
Monitoring and control of the strategic plan is most often accomplished through the use of an organizational dashboard or scorecard.
A dashboard is a visual reference used to monitor an organization's preference against targets over time. It allows for quick assessment of areas that may need adjustment where it can depict strategic, operational, and financial outcomes.
It should be monitored regularly (e.g. monthly) to identify variance from desired target and take corrective actions to alter the results.

34. Strategy Execution
Strategy execution is crucial for organizational success.
Barriers to strategy execution:
Culture: if an organization's stakeholders are not ready for the strategy, it will not be executed by even the most effective leaders. Many of the organizations were faced by strong resistance from an internal culture that was not prepared for this new change.
Solutions: may be starting strategy execution early in the planning process to enable the organization prepares itself for the implementation of the strategy/ or postpone the implementation until the organization is ready to implement it successfully.

35. A lack of focus of the strategy: leadership will develop more strategies than it can successfully execute/implement.
Solution: focusing on execution at the earliest stages of strategy development / strong leadership to maintain a long term focus/ strategy champions at all levels of the organization.
Participants of strategy execution:
Key leadership, Board of trustees, Upper and middle management, The medical staff, General staff, Community leaders.

36. Strategic Planning and Execution: The Role of the Healthcare Manager
Healthcare managers at all levels have the responsibility to:
Continually monitor their environment-both internal and external.
Assess and act upon the possible implications of any events.
Understand their local market and know their organization's strategic direction.
Identify ways to support the organization's strategy.
Help execute and manage the organization's strategy.

37. Example of sp in a healthcare organization
St. Michael’s Hospital Strategic Plan
OUR VISION
World leadership in urban health.
FROM OUR MISSION STATEMENT
St. Michael’s Hospital is a Catholic academic health care provider, fully affiliated with the University of Toronto and committed to innovative patient care, teaching and research. Established in 1892 by the Sisters of St. Joseph to care for the sick and poor, St. Michael's Hospital remains dedicated to treating all with respect, compassion and dignity.