Strategic Planning in Healthcare

STRATEGIC PLANNINGA TQM LECTURE FOR CME

BY

DR. AQEEL AHMED KHAN

TQM COORDINATOR ARAR CENTRAL HOSPITAL

KSA

Where to Begin

Like all businesses, medical practices should develop an annual business plan. Along with goals for growth,

Typically, the annual plan focuses on reviewing the current year and projecting operations into the next period. Strategic planning includes the basic components of the annual plan, but also includes goals that go well beyond the next year.

Some definitions of Strategic Planning

Doing Things On Purpose, For Good Reason, and With Good Information

Strategic planning is a “Systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” (www.BusinessDictionary.com)

Cont…

Strategic planning is a visionary process that results in major, long-range and far-reaching strategic directions or goals for the future

Strategic plans provide the foundation for operational planning in the form of policies, procedures, and strategies for obtaining and using resources to achieve those directions

What is Strategic Planning?

“Strategic planning is a formal process designed to help an organization maintain an optimal alignment with the most important elements of its environment” (Rowley, Lujan, & Dolence, 1997, p. 15).

The strategic planning process supplies the organization with tools that promote future thinking, applies the systems approach, allows for setting goals and strategies, provides a common framework for decisions and communications, and relies on measuring performance (Steiner, 1979).

Why do Strategic Planning?

If you fail to plan, then you plan to fail – be proactive

about the future Strategic planning improves performance Counter excessive inward and short-term

thinking Solve major issues at a macro level Communicate to everyone what is most

important

Strategic Planning SessionAn interactive planning session through open

discussion, consensus and commitment to a course of action to achieve desired outcomes.

The next step is to identify where the practice is today.

Once the current situation is summarized, the practice can develop its vision for the future. This last phase of the planning retreat includes development of goals, objectives, strategies and action plans.

How to proceed?Strategic planning begins with a work session

involving physicians as well as top managers.

An independent, experienced and knowledgeable facilitator should be selected by the practice to guide the process to ensure impartiality and inclusiveness.

comparative analysis

Put the strategic plan in writing so there is a blueprint for implementation and monitoring. It is important to include each of these elements:

• Introduction — mission statement• Practice summary — current situation analysis• Vision for the practice and practice goals• Strategies and objectives• Assignment of responsibility and monitoring

and evaluation techniques

Strategic Management: Model

Identify Strategic Factors

• Strengths

• Weaknesses

Scan Internal

Environment• Core Competence

• Synergy

• Value Creation

Identify Strateg

ic:• Corporate

• Business

• Functional

Define New:• Mission

• Goals

• Grand Strategy

Evaluate Current:• Mission

• Goals

• Grand Strategy

Scan External

Environment• National

• Global• Opportunit

ies

• Threats

Identify Strategic Factors

SWOT

Implementing Strategy via Changes in:

• Structure

• Human resources

• Information & control systems

8Matt H. Evans, [email protected]

Strategic Planning ModelA B C D E

• Environmental Scan

Assessment

• Background Information

• Situational Analysis

• SWOT – Strength’s, Weaknesses, Opportunities, Threats

• Situation – Past, Present and Future

• Significant Issues

• Align / Fit with Capabilities

• Mission & Vision

• Values / Guiding Principles

• Major Goals

• Specific Objectives

• Performance Measurement

• Targets / Standards of Performance

• Initiatives and Projects

Baseline Components

• Performance Management

• Review Progress –Balanced Scorecard

• Take Corrective Actions

Down to Specifics

Evaluate

Where we are Where we want to be How we will do it How are we doing

• Gaps • Action Plans • Feedback upstream –revise plans

11Matt H. Evans, [email protected]

Assessment Model:S W O T

Assessment

External Assessment: Marketplace, competitor’s, social trends, technology, regulatory environment, economic cycles .

Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers, . . .

• Easy to Understand• Apply at any

organizational level

• Needs to be Analytical and Specific

• Be honest about your weaknesses

Good Points Possible Pitfalls

SWOT SWOT

Strategic Management: PEST Analysis

A scan of the external macro-

environment in which the firm

operates can be expressed in

terms of the following factors:

Political

Economic

Social

Technological

BaselineWhy create a baseline?

Puts everything about the organization into a single context for comparability and planning

Descriptive about the organization, as well as the overall environment

Include information about relationships – customers, suppliers, partners and stakeholders

Preferred format is the Organizational Profile

23Matt H. Evans, [email protected]

Major Components of theStrategic Plan / Down to Action

Components

Mission

Vision

Goals

Objectives

Measures

Why we exist

What we want to be

Indicators and Monitors of success

Desired level of performance and timelines

Planned Actions to Achieve Objectives

O1 O2

AI1 AI2 AI3

M1 M2 M3

T1 T1 T1

Specific outcomes expressed in measurable terms (NOT activities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Initiatives

What we must achieve to be successful

Mission & Vision StatementsMissionCaptures the essence of why the organization

exists – Who we are, what we do Explains the basic needs that you fulfill Expresses the core values of the organization

VisionHow the organization wants to be perceived in

the future An expression of the desired end state, a long-

term focus for the entire organization

Core Values & GoalsCore ValuesProvides an underlying framework for making

decisions – part of the organization’s culture often rooted in ethical themes.

GoalsA goal is a specific statement of the desired

results to be achieved over a specified period of time. They shapes the way ahead in actionable terms.

36Matt H. Evans, [email protected]

Down to Specifics

ObjectivesTasks/Actions to be achieved

An objective is a measurable statement or incremental milestone which specifies a change or benefit that the entity hopes to achieve as it strives to achieve a specific goal.

May need several objectives to meet a goal

Objectives should be S M A R T (S – Simple, M – Measurable, A – Attainable, R – Realistic, T –

Time bounded)

Action Plans & Initiatives?The Action Plan identifies the specific steps that will be

taken to achieve the initiatives and strategic objectives

Each Initiative has a supporting Action Plan(s) attached to it

They describe who does what, when it will be completed, and how the organization knows when steps are completed

Like Initiatives, Action Plans require the monitoring of progress on Objectives, for which measures are needed

Policy & ProceduresPolicy: (Any decision or rule to a specific issue) A policy enables or restricts actions, providing

specific information about the ends, the entity desires to achieve. It is a direction for the leadership and staff .

Procedure (A methodology or pathway) Procedures specify how to accomplish any

policy. It is a set of activities which are aimed at planned outputs.

What Resources?How to Link?

Every Action Plan should identify the following:

The human resources needed to succeedThe time resources needed to succeedThe financial resources needed to succeedThe physical resources (facilities, technology,

etc.) needed to succeed

48Matt H. Evans, [email protected]

Evaluate

Strategy EvaluationThe implementation of the strategy must be

monitored and adjusted as needed.

Evaluation and control consists of the following steps:

Define parameters to be measured

Define target values for those parameters

Perform measurements

Compare measured results to the pre-defined

standard

Make necessary changes

Criteria for Good EvaluationIntegrity ReliabilityAccuracyTimelinessConfidentiality & SecuritySuitabilityFeasibilityAcceptability

• For each measurement, you should have at least one target• When you reach your targets, you have successfully executed your strategy

Targets (The aim for the period)

Continuous Feedbackthrough the Balanced Scorecard

Use of Balanced Scorecard framework to organize and report actionable components.

Scorecard is used for managing the execution of strategies.

Scorecard “forces” us to look at different

perspectives and take into account cause-effect relationships.

It improves how you communicate strategies.

51www.studyMarketing.org

Continuous Improvement

Instituting

best practices

and

commitment

to continuous

improvement

• Competent strategy execution entails

visible, unyielding managerial commitment

to best practices and continuous

improvement.

• Benchmarking, the discovery and

adoption of best practices, and six sigma

initiatives all aim at improved efficiency,

better product, and greater customer

satisfaction.

THANK YOU

Any Questions??