1. STRATEGIC MANAGEMENT OF HEALTH CARE ORGANIZATIONS 7TH EDITION

2. Directional Strategies
Chapter 5
Directional Strategies .

3. Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.

4. Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
Recognize the important characteristics and components of organizational mission statements and be able to write a mission statement.

5. Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
Recognize the important characteristics and components of organizational mission statements and be able to write a mission statement.
Recognize the important characteristics and components of vision and be able to write an organizational vision statement.

6. Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
Recognize the important characteristics and components of organizational mission statements and be able to write a mission statement.
Recognize the important characteristics and components of vision and be able to write an organizational vision statement.
Recognize the important characteristics and components and be able to write a values statement.

7. Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.

8. Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
Identify service category critical success factors.

9. Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
Identify service category critical success factors.
Develop a set of strategic goals that contribute to the mission, move the organization toward the realization of its vision, and is consistent with the organization’s values.

10. Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
Identify service category critical success factors.
Develop a set of strategic goals that contribute to the mission, move the organization toward the realization of its vision, and is consistent with the organization’s values.
Recognize the important issues in the governance of health care organizations and the role of the board of directors in maintaining policy- making direction.

11. Develop a Strategy Strategy of the Organization Directional
External
Environment
Internal
Directional
Strategies,
Leadership
Should Do
Can
Wants
To Do

12. The Strategic Planning Process
Situation Analysis
Strategy Formulation
Planning the Implementation
External Analysis
Internal Analysis
Directional Strategies
Directional Strategies
Adaptive Strategies
Market Entry Strategies
Competitive Strategies
Service Delivery Strategies
Support Strategies
Action Plans

13. Directional Strategies
Directional strategies give an organization its identity. It represents “who we are,” “where we are going,” and “how we work.”
Mission a clear articulation of what the organization currently does
Vision articulation of the organization’s collective hope for the future
Values description of the behavioral norms, beliefs, and ideals that are important to the organization
The mission, vision, and values of an organization are central to the strategic planning process. All the strategies and goals must support these directional strategies.

14. Directional Strategies Outcomes
Reach consensus and document what the organization currently does
Reach consensus and document the collective hope for the future
Reach consensus and codify the fundamental values

15. Vision, Mission, and Values
Profile of tomorrow,
our hope for the future
Profile of today, our current products/services, customers, and philosophy
Profile of expected behaviors, our beliefs and ideals
Vision =
Mission =
Values =

16. What We Want to Do Mission
An organizational mission is a broadly defined but relatively enduring statement of purpose that distinguishes our organization from others.

17. Characteristics of a Mission Statement
Clear and concise
Concerned with the organization today
Specific about products/services
Enduring
Underscores uniqueness

18. Strategic Thinking Map for Writing a Mission Statement
Component
Key Words Reflecting Component
Target customers and clients

19. Strategic Thinking Map for Writing a Mission Statement
Component
Key Words Reflecting Component
Target customers and clients
2. Principal services delivered

20. Strategic Thinking Map for Writing a Mission Statement
Component
Key Words Reflecting Component
Target customers and clients
2. Principal services delivered
3. Geographical domain of the services delivered

21. Strategic Thinking Map for Writing a Mission Statement
Component
Key Words Reflecting Component
Target customers and clients
2. Principal services delivered
3. Geographical domain of the services delivered
4. Specific values

22. Strategic Thinking Map for Writing a Mission Statement
Component
Key Words Reflecting Component
Target customers and clients
2. Principal services delivered
3. Geographical domain of the services delivered
4. Specific values
5. Explicit philosophy

23. Strategic Thinking Map for Writing a Mission Statement
Component
Key Words Reflecting Component
Target customers and clients
2. Principal services delivered
3. Geographical domain of the services delivered
4. Specific values
5. Explicit philosophy
6. Other important aspects of distinctiveness/image

24. What We Want to Do Vision
Vision is an expression of hope – a description of what the organization will be like when it is successfully fulfilling its purpose.

25. Characteristics of Vision
Inspiring
Challenging
About excellence
Empower employees first and customers second
Comes alive in the details not in the broad generalities
Memorable and provides guidance
Not limited by the present

26. Strategic Thinking Map for Writing a Vision Statement
Component
Key Words Reflecting Component
Clear Hope for the future

27. Strategic Thinking Map for Writing a Vision Statement
Component
Key Words Reflecting Component
Clear Hope for the future
2. Challenging and about excellence

28. Strategic Thinking Map for Writing a Vision Statement
Component
Key Words Reflecting Component
Clear Hope for the future
2. Challenging and about excellence
3. Inspirational and emotional

29. Strategic Thinking Map for Writing a Vision Statement
Component
Key Words Reflecting Component
Clear Hope for the future
2. Challenging and about excellence
3. Inspirational and emotional
4. Empower employees first

30. Strategic Thinking Map for Writing a Vision Statement
Component
Key Words Reflecting Component
Clear Hope for the future
2. Challenging and about excellence
3. Inspirational and emotional
4. Empower employees first
5. Memorable and provides guidance

31. What We Want to Do Values
Values are the ideals organizations and people stand for – the fundamental principles that, along with the mission, make an organization unique.

32. Characteristics of Values
Reflect the organization’s culture
Consistent with the desired image
Acceptable to stakeholders
Consistent with vision
Ethical
Represent a clear commitment

33. Strategic Thinking Map for Writing a Value Statement
Component
Key Words Reflecting Component
1. Desired behaviors

34. Strategic Thinking Map for Writing a Value Statement
Component
Key Words Reflecting Component
1. Desired behaviors
2. Organizational norms

35. Strategic Thinking Map for Writing a Value Statement
Component
Key Words Reflecting Component
1. Desired behaviors
2. Organizational norms
3. Shared beliefs

36. Strategic Thinking Map for Writing a Value Statement
Component
Key Words Reflecting Component
1. Desired behaviors
2. Organizational norms
3. Shared beliefs
4. Share assumptions

37. Strategic Thinking Map for Writing a Value Statement
Component
Key Words Reflecting Component
1. Desired behaviors
2. Organizational norms
3. Shared beliefs
4. Share assumptions
5. Explicit philosophy

38. Strategic Thinking Map for Writing a Value Statement
Component
Key Words Reflecting Component
1. Desired behaviors
2. Organizational norms
3. Shared beliefs
4. Share assumptions
5. Explicit philosophy
6. Fundamental principles

39. Critical Success Factors
Critical success factors are those things that organizations must accomplish if it is to be successful.
Critical success factors are similar for all members of a strategic group.
Critical success factors vary from one service category to another.
Usually there are four or five things that must be achieved for success.
Strategic goals should address the critical success factors.

40. Setting Goals Strategic Criteria for goals Goals Statement Criteria
Address an external issue, trend, or force
Concern a stakeholder
Help achieve a critical success factor
Draw on a strength or fix a weakness
Fit with the mission
Be consistent with the values
Move the organization toward the vision
Goals Statement Criteria
Controllable by the organization
Measureable as possible
Able to be achieved in a reasonable timeframe
Have a reasonable level of stretch for the organization

41. The Process of Momentum Creation
Setting goals
Organizations, like individuals, that have too many goals lose their focus
“One worthwhile task carried to a successful conclusion is better than half-a-hundred half-finished tasks” – B.C. Forbes (Founder, Forbes Magazine)
For most organizations, 4–6 goals are the “sweet spot”
Three types of goals: input, process, & output

42. Developing Action Plans
Action plans are developed for each goal
Goal #1: “Statement of Goal”
Action Necessary to Achieve the Goal
Start Time/
End time
Unit/Individual Responsible for carrying out the Action
Strategic Planning Participant Responsible for Reporting at Next Strategy Section

43. Governing Boards
An important group that should be involved in the development of the strategic direction of the health care organization
Board members should be regularly informed about
Strategic goals
Progress being made in their accomplishment

44. Governance Modes Applied to Boards of Directors
Fiduciary responsibility mode or stewardship of assets

45. Governance Modes Applied to Boards of Directors
Fiduciary responsibility mode or stewardship of assets
Strategic mode
Collaboration with management to develop a vision for the future

46. Governance Modes Applied to Boards of Directors
Fiduciary responsibility mode or stewardship of assets
Strategic mode
Collaboration with management to develop a vision for the future
Generative mode
Engages in shared creative thinking to make sense of data available to decision makers

47. Governance Modes Applied to Boards of Directors
Fiduciary responsibility mode or stewardship of assets
Strategic mode
Collaboration with management to develop a vision for the future
Generative mode
Engages in shared creative thinking to make sense of data available to decision makers
Progressive mode
Engages in debate, discussion and learning from each other

48. Five Behaviors Lead to Effective Boards
Engage in constructive conflicts (especially with the CEO)
Avoid destructive conflict
Work together as a team
Know the appropriate level of strategic involvement
Address decisions comprehensively

49. Managing Strategic Momentum: Evaluating Directional Strategies
Are we not doing some things now that we should be doing?
Are we doing some things now that we should not be doing?
Are we doing some things now we should do but do in a different way?
Are our organization’s mission and vision unique in some way?
Is our mission relatively enduring?
Do our mission and vision allow for innovation?
Do our mission and vision allow for expansion?

50. Managing Strategic Momentum: Evaluating Directional Strategies
Is our scope of operations clear (market, products/services, customers, geographic coverage)?
Do our mission, vision, and values fit the needs of our stakeholders?
Do our fundamental values make sense?
Are our strategic goals moving us toward achievement of our mission?
Are our strategic goals moving us toward achievement of our vision?
Have we addressed the critical success factors?
Is the image of the organization what it should be?

51. Chapter 5 Conclusions
After reading Chapter 5, you should be able to define the following terms:
Key Terms
Corporate Governing Boards
Philanthropic Governing Boards
Critical Success Factor
Pioneering
First-Mover Advantage
Strategic Goals
Liability of Newness
Values
Mission
Vision
Mission Drift
Vision-Led Approach

52. Assignment
ABC Long-Term Care (introduced in the previous assignment) is now ready to develop mission, vision, and values statements.
The management team has brainstormed the Mission and Vision components presented in the next two slides.
Develop mission and vision statements for ABC Long-Term Care.
Based on what you know about ABC, also draft a statement of values for ABC

53. Mission Statement Components
Key Words of Our
Target customers/clients and markets
residents
Principles services/products offered
living choices, high quality services
Geographical domain of operations
Commitment to specific values
caring professionals, to meet the physical, social, and spiritual needs
Explicit philosophy
enhance the quality of life
Other important components
timeless environment

54. Vision Statement Components
Key Words of Our Vision
A clear hope for the future
leader in long-term care
Challenging and about excellence
safe, secure and caring
Inspirational and emotional
Empowers employees first and clients/customers second
for patients, their families and our staff
Prepares for the future
quality leader
Memorable and provides guidance
quality