1. Strategic Management H Edu 4790/6790

2. Strategic Planning Where do we want to be? Where are we now? How do we get there? Did we get there?

3. Type of planning Mission Organization Departmental

4. Type of planning Strategic Operational Production plans Financial plans Facilities plans Marketing plans Human resource plans

5. Who plans Senior managers Mid-level manager Front-line managers

6. Planning process Define your objectives Determine where you stand Develop premises regarding the future Analyze alternatives Implement and evaluate

7. Approaches to planning Proactive versus reactive Developmental versus incremental

8. Benefits of planning Focus and flexibility Reduces uncertainty, ambiguity and risk Improves coordination Improves control Time management

9. Foundations of good planning Forecasting Use of scenarios Benchmarking Participation and involvement

10. Three types… Strategic planning MBO PRECEDE - PROCEED

11. Strategic planning Mission, Vision, Values Objectives Good objectives Benchmarking Assessment Primary and secondary research PEST analysis SWOT analysis

12. PEST Analysis Political Economic Social Technological

13. PEST Political Ecological/environmental Current legislation Future legislation Regulatory bodies Government policies Economic Home economy situation Home economy trends General taxation issues Seasonality/weather issues Market and trade cycles Social Lifestyle trends Demographics Consumer attitudes and opinions Media views Law changes Technological Competing technology Research funding Associated/dependent tech Replacement tech/solutions Maturity of technology

14. SWOT StrengthsWeaknesses OpportunitiesThreats

15. Strategic planning Grand strategy Growth Concentration Diversitifcation Retrenchment Stability

16. Portfolio analysis Question Marks Stars Dogs Cash cows

17. Life Cycle Introduction Growth Maturity Decline

18. Management by Objectives (MBO) Edwin Locke – Goal-Setting Theory Peter Drucker Types of objectives Improvement objectives Personal development objectives Maintenance objectives

19. PRECEDE - PROCEED

20. Characteristics of Entrepreneurship Internal locus of control High energy Achievement oriented Tolerance for ambiguity Self-confidence Action oriented Desire for independence

21. Small businesses Physicians Dentists Physical therapists Consultants

22. Life Cycles Birth Growth Breakthrough Maturity Decline

23. Business plan Executive Summary Industry analysis Company description Products and services Market description Operations Staffing Financial projection Capital needs

24. Ownership Sole proprietorship Partnership Corporation

25. Financing Debt financing Equity financing Venture capitalists Angel investor

26. Control Management model review Steps of the control process Establish performance objectives Measure actual performance Compare actual to objectives Take necessary action

27. Points of control Feedforward (inputs) Concurrent (processes) Feedback (outputs)

28. Work inputs Budgeting Cost allocation Input-to-output ratios Inventory control

29. Work throughputs - processes Quality improvement Risk management Identifying risk Evaluating risk Eliminating risk Transferring risk

30. Work outputs Key indicators Control loops

31. In Control Loop Change --inputs --process Improvement Possible ? Do results Meet Expectations ? Develop New standards Actual Results Standards Expectations Measurement Comparison No Yes No Exceed

32. Positive Control Loop Improvement Possible ? Do results Meet Expectations ? Actual Results Standards Expectations Measurement Comparison No Yes No Exceed Is Exceed Desirable ? Determine cause Reinforce/ continue

33. Acceptance Control Loop Improvement Possible ? Do results Meet Expectations ? Actual Results Standards Expectations Measurement Comparison No Yes No Continue Determine cause Is deviation acceptable? Is cause controllable? No Yes

34. Required Change Control Loop Improvement Possible ? Do results Meet Expectations ? Actual Results Standards Expectations Measurement Comparison No Yes No Continue Determine cause Is deviation acceptable? Is cause controllable? Yes Change No

35. Considerations Managerial Design

36. Financial Control Liquidity Capital Structure Profitability

37. Liquidity Current = Current assets current liabilities Collection Period (A/R) = New accounts receivable average daily operating revenue

38. Capital Structure Long-term dept to fixed assets = Long-term debt Net fixed assets Long-term Dept to Equity Ratio = Long-term debt Unrestricted fund balance

39. Profitability Mark-up = Gross patient revenue Operating expenses Operating margin = Operating income Operating revenue

40. Locus of Control