HMP 4600 Chapter 1

Strategic Thinkers

- Do not assume that the organization will continue to do what it is presently doing. - Determine what the organization should stop doing. - Determine what the organization should start doing that it is presently not doing. - Determine what the organization should continue to do but perhaps in a fundamentally different way.

Strategic Planning

- Provides a sequential, step-by-step process for creating a strategy - Involves periodic group strategic thinking sessions - Requires data/information, but incorporates consensus and judgment - Establishes organizational focus - Facilitates consistent decision making - Reaches consensus on how the organization fits within its industry Results in a documented strategic plan Orientation/Scope: Periodic Group Leadership and Management Process Requires data/info, uses consensus & judgment

What Strategic Management is NOT

- a quick fix - a technique or gimmick - just a yearly planning retreat - paper intensive - a regulatory document - just an extension of last year's plan - just based on forecasts of current operations

Systems Approach

1. Focuses on identifying and understanding the "big picture" 2. Facilitates the identification of major components 3. Helps to identify relationships and important perspectives 4. Allows for a broad scope solutions 5. Fosters integration 6. Provides basis for redesign

Managing Strategic Momentum

1. The actual work to accomplish specific objectives 2. Concerns decision-making processes and their consequences 3. Provides the style and culture 4. Evaluates strategy performance 5. Relies on and initiates new strategic thinking and new periodic strategic planning Process of Leading and Managing the Strategy using Thinking and Planning Orientation/Scope: Organizational Management Processes

Benefits of Strategic Management

1. Ties the organization together with a common sense of purpose and shared values 2. Improves financial performance 3. Provides organization with a clear self-concept, specific goals, and guidance 4. Improves coordination within the organization 5. Encourages innovation and change to fit dynamic situations

The Map

A metaphor for a plan, guideline, or method - Analytical or Rational Approach - Logical Sequence of Steps - Specific Processes - Better in Known Worlds

The Compass

A metaphor for an intuitive sense of direction and leadership. - Emergent Approach - Relies on Learning - Leadership Sets Direction - Better in Uncharted Worlds

Divisional-level strategy

An overall plan for a corporate division or single product - single market organization. 1. Provide direction for a single business type 2. Most concerned with positioning the division to compete "How many hospitals are optimal?"

Unit-level strategy

An overall plan for individual departments within an organization that supports higher-level organizational strategies. 1. Intended to integrate the various sub functional activities 2. Designed to relate the various functional area policies with any changes in the functional area environment. Specific objectives

Organizational-level strategy

An overall plan for single entity competing within a specified well-defined service area. 1. Typically concern one organization competing within a specific, well-defined service area 2. Takes into consideration what competitors are doing to be better Corp: SSM Div: St. Louis Org: SLU Unit: ER

Corporate-level strategy

An overall plan for the broadest organizational level that positions the organization in multiple markets served with multiple products. 1. "What business should we be in?" 2. Strategies consider multiple, sometimes unrelated, markets and are based on return on investment, market share, potential market share, system integration

Reliance on intuitive thinking, leadership, and learning with the understanding that because of external change, strategic plans evolve as strategy unfolds and the organization learns what works and what does not.

Emergent Approach

A relatively unexpected strategy that develops as uncontrollable and unanticipated external events unfold.

Emergent Strategy

Transformative Thinking

Focuses on challenging accepted beliefs, assumptions, perspectives, and premises; redefines issues using a different perspective.

Innovative Thinking

Focuses on introducing something new, better, or different - a pioneering breakthrough in processes, product/services, or solutions to issues.

Divergent Thinking

Focuses on non-traditional solutions; explores different innovative responses rather than commonly accepted solutions.

Critical Thinking

Focuses on rationality; a logical, fact-based analysis and critique.

Visionary Thinking

Focuses on the future and possible future states.

Systems Thinking

Focuses on understanding the whole and the relationships of its components including interrelationships and interdependencies.

Creative Thinking

Focuses on unique imaginative solutions that are new to the organization for all types of issues or problems.

Rules, regulations, legislation, and executive actions that apply to all consumers and providers of health care. - Determines the rules that apply to all consumers and providers. - Develops and maintains an infrastructure to efficiently enhance the health of the public. - Defines the institutions that meet the preferences of most of society. - Develops the rules under which insurers and providers compete. - Is set by congress, state legislatures, executive branches, and agencies such as health departments, the Centers for Disease Control and Prevention, the Food and Drug Administration and so on.

Health Policy

A series of specific steps/activities that are formulated to accomplish strategic goals and are directed toward service delivery and organizational support activities.

Implementation Plan

Health Policy Planning

Intent is to provide the context for the development of the healthcare infrastructure as a whole. 1. Enhance quality of care 2. Reduce medical errors 3. Provide/control access to care 4. Contain costs

Complex Adaptive System

Interacting structures (organizations or parts of organizations) evolving in response to change

Creating a vision and sharing it; aligning individuals and building coalitions; motivating and inspiring.

Leadership

Synthesis

Links issues and summarizes their implications using systems perspectives and vision grounded in reality.

Planning method developed in the 1950s to forecast demand for current products/services to enable managers to better develop marketing and distribution, production, human resources, and financial plans

Long-Range Planning

Awareness

Mindfulness and external orientation, perception of and hypersensitivity to change.

Anticipation

Projects the present, keenly considers/envisions (imagines) the future; links issues and finds new meanings; high level of expectancy; conceptualization

A planned approach to the business that subsequently works out successfully (as planned).

Realized Strategy

Reflection

Reconsideration of interpretation and synthesis, reality testing, evaluation, and opinion seeking.

Analytical/Rational Approach

Reliance on a logical sequence of planning steps to develop a strategic plan. The assumption underlying an analytical approach is that one can develop a predetermined logical plan and carry it out without change.

Business Strategy

Set of guidelines or plan an organization chooses to ENSURE DECISION CONSISTENCY and move it from where it is today to a desired state some time in the future.

A process of understanding and documenting the external environment an organization faces now and into the future, current internal systems, and directional strategies (mission, vision, values, and strategic goals).

Situational Analysis

A semi-autonomous division-level entity within a larger organization that produces a physical product (see also SSU).

Strategic Business Unit (SBU)

The process of strategic thinking, strategic planning, and managing the strategic momentum of an organization to provide direction and change to achieve the organization's mission and vision. Continuous planning, monitoring, analysis, and assessment of all that is necessary in order for a healthcare organization to meet its goals and objectives Responds to internal and external forces

Strategic Management

The management processes of implementing the organization's competitive plan to position itself through day-to-day activities directed toward achieving its overall desired end results (goals).

Strategic Momentum

A semi-autonomous division-level entity within the larger organization that produces an intangible that one party offers to another that is not a physical product (see also SBU).

Strategic Service Unit (SSU)

An intellectual activity that is perceptive to emerging changes, strategic implications and develops transformative responses; includes the activities of awareness, anticipation, analysis, interpretation, synthesis, and reflection. Fundamental Strategic Skill - an Intellectual Orientation, a Way of Thinking or Mindset Orientation/Scope: Individual Leadership Process Individual intellectual process, a mindset of intellectual analysis that asks people to position themselves as leaders and see the big picture. 1. Acknowledging the reality of change 2. Questions current assumptions and activities 3. Builds an understanding of systems 4. Envisions possible futures 5. Generates new ideas 6. Considers fitting the organization to the environment

Strategic Thinking

An intellectual process guided by a logical plan of action (set of guidelines); used to describe approaches, guidelines, or analytical methods to ignite cognitions leading to a strategic plan or components of a strategic plan.

Strategic Thinking Map

The consistent behavior of an organization in coping with its technological, social and demographic, economic, legislative/political, and competitive issues; a consistent, relatively enduring approach to achieve a goal or objective; the result of the strategic planning process that effectively positions the organization in its environment.

Strategy

The process of developing strategic alternatives, evaluating alternatives, and making strategic choices that are competitively relevant.

Strategy Formulation

A perceived whole whose elements hang together because they continually affect each other over time and operate toward a common purpose.

System

A way of understanding a phenomenon by perceiving the whole as well as its interactive elements (subsystems); a system's subsystems continuously affect each other and operate toward a common purpose.

Systems Perspective

Analysis

Systems perspectives and critical thinking to examine changing issues; combining and assessing quantitative and qualitative data.

- Strategic management is a way of thinking - an approach for managing complex organizations - Strategic thinkers draw upon the past, understand the present, and can envision a better future - Planners, on the other hand, figure out how to get where the strategic thinkers want to go

The Dimensions of Strategic Management

Directional Strategies

The broadest strategies that set the fundamental direction of the organization by establishing mission, vision, values, and overall strategic goals. Represent "who we are," "where we are going," and "how we work." 1. Mission 2. Vision 3. Values 4. Strategic goals

Interpretation

Transformative, divergent, innovative, creative, and visionary perspectives; accurate assessment and use of data; ability to incorporate different perspectives.

A course of action or strategic plan that did not work out as envisioned or planned.

Unrealized Strategy

- Long-Range Planning - Strategic Planning - Strategic Management - Strategic Management in the Health Care Industry

What does the development of Strategic Management consist of?

Greek verb __________ means "to plan the destruction of one's enemies through effective use of resources"

stratēgēō

Greek word __________, meaning " a general" which in turn comes from roots meaning " army" and " lead"

stratēgōs