1. Strategic and Operational Planning
Chapter 7
Strategic and Operational Planning

2. Planning
Planning is deciding in advance what to do, who is to do it, how it is to be done, and when it is to be done
Planning is a proactive, deliberate process required of all managers
Planning is a guide for action in reaching a goal and requires flexibility and energy
Planning also requires management skills such as data gathering, forecasting, and transforming ideas into action

3. Planning Is Critically Important to and Precedes All Other Management Functions
Without adequate planning, the management process fails, and organizational needs and objectives cannot be met

4. Barriers to Identifying Long-Term Needs in Planning
Health-care reform
Rapidly changing technology
Increasing government regulation of health care
Scientific advances

5. Factors Influencing the Future of Health Care
Robotic technology
Biomechatronics
Biometrics and smart cards
Point-of-care testing
Telehealth and the Internet
Growing elderly population
Nursing shortages in acute care hospitals

6. Proactive Planning Reactive planning: occurs after a problem exists
Inactivism: seeks the status quo
Preactive planning: utilizes technology to accelerate change; future-oriented
Interactive or proactive planning: considers the past, present, and future and attempts to plan the future of an organization rather than react to it

7. Question
Advocating against implementing a new hospital computer system is an example of which type of planning?
Reactivist
Inactivist
Preactivist
Proactivist

8. Answer
B. Inactivist
Rationale: Inactivists would rather maintain the status quo than take a risk with a new way of doing things. Reactive planning occurs after a problem exists. Preactive planners utilize technology to accelerate change and are future oriented. Proactivists consider the past, present, and future and attempt to plan the future of their organization rather than react to it

9. Reminder
Managers who are uninformed about the legal, political, economic, and social factors affecting health care make planning errors that may have disastrous implications for their professional development and the financial viability of the organization

10. Strategic Planning
Planning has many dimensions, including time span and complexity or comprehensiveness
Complex plans are long-range or strategic plans
Strategic planning typically examines an organization’s purpose, mission, philosophy, and goals in the context of its external environment

11. SWOT Definitions
Strengths are those internal attributes that help an organization to achieve its objectives
Weaknesses are those internal attributes that challenge an organization in achieving its objectives
Opportunities are external conditions that promote achievement of organizational objectives
Threats are external conditions that challenge or threaten the achievement of organizational objectives

12. Simple Rules for SWOT Analysis
Be realistic about the strengths and weaknesses of your organization
Be clear about how the present organization differs from what might be possible in the future
Be specific about what you want to accomplish
Always apply SWOT in relation to your competitors
Keep SWOT short and simple
Remember that SWOT is subjective
Source: Adapted from Marketing Teacher Ltd. (2000– 2013). SWOT analysis: Lesson. Retrieved April 22, 2013, from analysis/

13. Using a Balanced Scorecard
Strategic planners using a balanced scorecard:
Develop metrics
Collect data
Analyze that data from four organizational perspectives:
Financial
Customers
Business processes
Learning and growth

14. Steps for Using Strategic Planning
Clearly define the purpose of the organization
Establish realistic goals and objectives
Identify external constituencies and determine their assessment of the organization’s purposes
Clearly communicate the goals to the constituents
Develop a sense of ownership of the plan

15. Steps for Using Strategic Planning—(cont.)
Develop strategies to achieve the goals
Ensure that the most effective use is made of resources
Provide a base from which progress can be measured

16. Principles of Good Planning
All plans must flow from other plans. Short-range plans must be congruent with long-range plans
Planning in all areas of the organization must follow the mission, philosophy, and goals of the overall organization
Planning involves the same process regardless of the period involved

17. Principles of Good Planning—(cont.)
The length of the plan is determined by what actions are necessary to make the plan successful
All planning must include an evaluation step and requires periodic reevaluation and prioritization
All people and organizational units affected by a plan should be included in the planning

18. Question Tell whether the following statement is True or False:
The planning process differs depending on the period of time involved.
True
False

19. Answer
B. False
Rationale: Planning involves the same process regardless of the period involved

20. Strategies for Successful Planning
Start planning at the top
Keep planning organized, clear, and definite
Do not bypass levels of people
Have short- and long-range plans and goals
Know when to plan and when not to
Keep target dates realistic
Gather data appropriately
Be sure objectives are clear
Remember, interpersonal relationships are important

21. Planning
Because a plan is a guide to reach a goal, it must be flexible and allow for readjustment as unexpected events occur

22. Why Do Plans Fail? False assumptions Not knowing overall goal
Not enough alternatives
Inadequate time or other resources
Low motivation levels
Sound strategies not used
Inadequate delegation of authority
Not recognizing organizational goals and needs
Planning too narrow in scope—not recognizing community, legal, and licensing requirements

23. Question Which is an example of why plans might fail?
Not enough alternatives
Low motivation levels
False assumptions
Lack of sound strategies
All of the above

24. Answer E. All of the above
Rationale: These are just several of numerous mistakes that can cause plans to be unsuccessful

25. Difficulty in Long-Term Care Needs and Health-Care Organizations
Rapidly changing technology
Increasing government involvement in health care
Changing population demographics
Reduced provider autonomy

26. Planning Types Reactivists plan after a problem exists
Inactivists consider the status quo as the stable environment and they spend a great deal of energy preventing change and maintaining conformity
Preactive planners utilize technology to accelerate change and are future-oriented
Proactive planning style is always the goal

27. Proactive Planning
Is dynamic, and adaptation is considered to be a key requirement since the environment changes so frequently

28. Forecasting Using available historical patterns to assist in planning
Examining present clues and projected statistics to determine future needs

29. SWOT Analysis The identification of: Strengths Weaknesses
Opportunities
Threats

30. Balanced Scorecard
Strategic planners use a Balanced Scorecard to develop metrics (performance measurement indicators), collect data, and analyze that data from four organizational perspectives—financial, customers, internal business processes (or simply processes), and learning and growth

31. Question A Balanced Scorecard is used to: (Select all that apply)
Collect data
Gain clients
Develop metrics
Analyze data

32. Answer A. Collect data, C. Develop metrics, and D. Analyze data
Rationale: The Balanced Scorecard assists strategic planners in developing metrics, collecting data, and analyzing the data. It does not help them gain clients.

33. Strategic Planning as a Management Process Should Include the Following
A clear statement of the organization’s mission
The identification of the agency’s external constituencies or stakeholders and the determination of their assessment of the agency’s purposes and operations
The delineation of the agency’s strategic goals and objectives, typically in a 3- to 5-year plan
The development of strategies to achieve the goals

34. Subordinate Input in Strategic Plans
There is increasing recognition of the importance of subordinate input from all levels of the organization to give strategic plans meaning and to increase the likelihood of their successful implementation

35. Length of Strategic Plan
Unlike the 20-year strategic plans of the 1960s and 1970s, most long-term planners today find it difficult to look even 5 years in the future

36. The Planning Hierarchy
Mission
Philosophy
Goals
Objectives
Policies
Procedures
Rules

37. Organizational Philosophy Statement
A person should be able to identify exactly how the organization is implementing its philosophy by observing members of the nursing staff, reviewing the budgetary priorities, and talking to patients

38. Goal, Objective, Policies, Procedures, and Rules
Goal—the desired result toward which effort is directed
Objective—how the goal will specifically be achieved (includes time frame and is measurable)
Policies—plans reduced to statements
Procedures—step-by-step process
Rules—plans that specifically define acceptable choices of action

39. Rules as Part of the Planning Hierarchy
Because rules are the least flexible type of planning in the planning hierarchy, there should be as few rules as possible in the organization
Existing rules, however, should be enforced to keep morale from breaking down and to promote organizational structure