1. Business Plan

2. Plan
The higher the manager, the more time should be allotted to planning.
Efficiency and quality should be considered and weighed.
Strategic planning requires clear goals and objectives—then a plan to achieve the goals.

3. Goal
As an effective manager, “we must learn to focus on improving the service we provide rather than on simply making sure we provide it.”

4. Goals and Objectives Goals—broad aims of the organization
Objectives—specific (measurable) ways to achieve the goals
Balance revenue and quality, short-term and long-range goals of organization

5. Importance of Clear Goals
Managers with clear goals are less likely to be ineffective/inefficient.
When the mission is clear, then less time and effort should be spent on unnecessary activities (those not focused on the mission).

6. What a Plan Does
When presenting a business plan, it may be to eliminate a service, downsize a service, expand a service, or develop new service.
A plan is just a guide.
Evaluation annually is required.

7. Zero-Base Budget All costs are justified each budget cycle
Should contain
Purpose of each program
Consequences of not having program
Measurement of costs and benefits
Statement of alternatives
Methods to produce
Quantity
Levels of quality

8. Business Plan Used to change or develop a service
Requires knowledge of
Financial issues
Market issues
Forecasting
Resource issues

9. “Starting programs that fail because of inadequate financial planning does not serve the health care needs of society.”

10. Steps Project proposal Project definition Market analysis
Clear
Market analysis
Market share?
Mix of patients
Rough financial plan
Operating (revenues and expenses)

11. Business Plan Mission of the organization
How the proposed fits with the mission
Description of product or service
Describe consumers (real and potential)
How service fits with existing services
The competitive edge (market share)
Profitability (pro forma financial statements)

12. Business Plan (cont.) Potential risks
Regulation or other issues that may impede project
Timeline
Commitment of management to project