1. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Chapter 7 Strategic and Operational Planning

2. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Planning 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. Guide for action in reaching a goal and be flexible Specific, simple, realistic

3. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Without adequate planning, the management process fails, and organizational needs and objectives cannot be met. Planning Is Critically Important to and Precedes All Other Management Functions

4. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins A need to choose from among alternatives All Planning Involves Choice

5. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.

6. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.

7. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Question Tell whether the following statement is True or False: The planning process differs depending on the period of time involved. A.True B.False

8. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Answer B. False Rationale: Planning involves the same process regardless of the period involved.

9. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Strategies for Successful Planning Start planning at the top. Keep planning organized, clear, and definite. Don’t 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.

10. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Because a plan is a guide to reach a goal, it must be flexible and allow for readjustment as unexpected events occur. Planning

11. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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

12. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Question Which is an example of why plans might fail? A.Not enough alternatives B.Low motivation levels C.False assumptions D.Lack of sound strategies E.All of the above

13. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Answer E. All of the above Rationale: These are just several of numerous mistakes that can cause plans to be unsuccessful.

14. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Primary Planning Modes Reactive planning Inactivism Preactivism Proactive planning

15. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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

16. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.

17. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Question Advocating against implementing a new hospital computer system is an example of which type of planning? A.Reactivist B.Inactivist C.Preactivist

18. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Answer B. Inactivist Rationale: Inactivists would rather maintain the status quo than take a risk with a new way of doing things.

19. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Proactive Planning Is dynamic, and adaptation is considered to be a key requirement since the environment changes so frequently

20. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Forecasting Using available historical patterns to assist in planning Examining present clues and projected statistics to determine future needs

21. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins SWOT Analysis The identification of: Strengths Weaknesses Opportunities Threats

22. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.

23. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Question A Balanced Scorecard is used to: (Select all that apply) A.Collect data B.Gain clients C.Develop metrics D.Analyze data

24. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.

25. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Strategic Planning as a Management Process Should Include the Following: 1.A clear statement of the organization’s mission 2.The identification of the agency’s external constituencies or stakeholders and the determination of their assessment of the agency’s purposes and operations 3.The delineation of the agency’s strategic goals and objectives, typically in a 3- to 5-year plan 4.The development of strategies to achieve the goals

26. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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. Subordinate Input in Strategic Plans

27. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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. Length of Strategic Plan

28. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins The Planning Hierarchy Mission Philosophy Goals Objectives Policies Procedures Rules

29. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Vision Statements They are used to describe future goals or aims of an organization.

30. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Sample Mission Statement James King Memorial Hospital is a full-service health care institution which provides a broad range of preventive and curative health care services: primary, secondary, and tertiary. James Memorial Hospital will strive to provide high- quality care at a reasonable cost and with a minimum of unnecessary duplication.

31. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.

32. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Values The beliefs that guide behavior

33. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins The nurse-leader must be self-aware and provide subordinates with learning opportunities or experiences that foster increased self-awareness. Value of Self-Awareness

34. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Nurses who frequently make decisions that conflict with their personal values may experience confusion and anxiety. Decision and Personal Values

35. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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

36. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Goal The desired result toward which effort is directed; the aim of the philosophy.

37. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Objectives Include a specific time frame for completion. Be stated in behavioral terms. Be objectively evaluated. Identify positive rather than negative outcomes.

38. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Policies Statements of expectations that set boundaries for action taking and decision making

39. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Procedures Plans that establish customary or acceptable ways of accomplishing a specific task and that delineate a sequence of steps of required action

40. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins Rules are the least flexible type of planning. Rules

41. Copyright © 2012 Wolters Kluwer Health | Lippincott Williams & Wilkins 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.