1. LABORATORY MANAGEMENT Lecture 2

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3. Managers in the clinical laboratory are concerned with the human element Successful managerial leadership creates a climate in which both the needs of the individual and the goals of the organization can be met The wrap–up function in the administrative process is controlling which ensures that the end-product of organized and directed events conforms to plans Supervisors are aware of importance of good quality control In the administrative process controlling is important including: defining standards criteria for acceptable performance, developing reporting system, and taking corrective action when and where needed 3

4. Decision – Making Decision – making is an activity that is inherent in all other administrative process activities This is the part of the process that ties everything together Decisions must be made as part of planning, organizing, directing and controlling The process includes: problem analysis, development and analysis of alternative course of action and decision implementation and control 4

5. Cost–effective Management Cost–effective management of clinical laboratories must be considered Laboratory managers are called upon to: accurately forecast cost/benefit ratios and market to new entities Managers must modify the structure for efficiency and redesign jobs, perhaps creating career ladders for technical staff To increase productivity under the directing function, managers need to create a work environment characterized by responsibility and participative Management Laboratory managers must implement cost- containment measures through: reduction in overuse of testing, And inventory control 5

6. Educating Laboratory Administrators Many laboratory supervisors and managers have been promoted into their positions on the strength of their technical abilities More often they received their training on the job 6

7. Training versus Education TrainingEducation  Training is the process of learning a sequence of programmed behaviors  Education is the understanding and interpretation of knowledge o We train bricklayer, Tv repairmen…..  Training is the application of knowledge  Education does not provide definitive answers, but rather develops a logical and rational mind 7

8. Training versus Education Although the classroom setting is adequate to introduce the principles of management science and the basic techniques of effective supervision, it does not provide a complete preparation for administrative responsibilities The same as academic grades are incomplete predictors of success for performing laboratory analysis Facilitating the development of technical managers requires and understanding of what technical managers need to learn and a sense of when they are most ready to learn 8

9. New supervisors were polled to determine their feelings of need as they began new careers, the following results were obtained: 89% wanted more knowledge on human relations 59% needed better communication techniques 40% felt deficient in personnel procedures and record-keeping 39% needed help in operation planning 27% wanted better methods of staff development Most needs were for effective methods in dealing with people This knowledge is not easily or simply obtained 9

10. Strategic Management and Planning Strategic management is defined as the development and implementation of the laboratory's overall strategy, in relation to its current and future demands for service There are six related major tasks in the strategic management process: 1. goal formulation 2. environment analysis 3. strategy formulation 4. strategy evaluation 5. strategy implementation 6. strategic control 10

11. Strategic Planning Process Clinical laboratories need to analyze the external environment, opportunities for growth and development in new service markets, as part of a strategic planning process Example of a strategic planning process: 1. Strategic Planning 2. Developmental planning 3. Operational planning 4. Implement the plans 5. Monitor performance 6. Recycle annually or when significant new data are obtained 11

12. 1- Strategic Planning A. Review existing mission and goals using articles of incorporation, minutes of board meeting, etc. B. Develop base line data 1. Asses market demand using population trends, demographic trends, hospital fee trends 2. Estimate market share using, medical staffing trends, competition trends 3. Project resource utilization using data on admissions, outpatient visits, and average stay Evaluate alternative courses of action and identify strategic directions for various market segments 12

13. 2- Developmental Planning 1. Do market segment analysis 2. Determine geographic alternatives 3. Determine financial feasibility 4. Design construction, etc.. 13

14. 3- Operational Planning Identify management style, goals, etc.. Establish operating budget. Establish capital budget. 14