CHAPT 4 strategic plan swot

At a glance, the balanced scorecard shows an organization's

At a glance, the balanced scorecard shows an organization's goals and how to achieve them.

Step 2 of SWOT analysis A trained facilitator is often used to lead a ________________ with senior management.

A trained facilitator is often used to lead a brainstorming session with senior management.

After identifying these positive and negative forces, organizations can develop strategies to

After identifying these positive and negative forces, organizations can develop strategies to strengthen the positives and minimize the negatives.

Performance variations also result from ______________ the allocation of healthcare resources—e.g. staff hiring over expensive capital investments.

Performance variations also result from trade-offs in the allocation of healthcare resources—e.g. staff hiring over expensive capital investments.

Gauges and dials - graphic representation

Dashboards Gauges and dials - graphic representation Dashboards could include the following: Quality of care (e.g., hospital-acquired infection rates and 30-day readmission rates) Patient satisfaction Market penetration Operating efficiency (e.g., emergency wait time, average length of stay, cost per procedure) Financial performance (net operating income and cash on hand)

The revenue captured by the services a patient uses after his initial visit.

Downstream Revenue The revenue captured by the services a patient uses after his initial visit.

Downstream Revenue

Downstream Revenue Understanding it can provide a hospital with a better foundation for strategic planning and resource allocation.

takes SWOT analysis a step further by identifying the forces driving or hindering change—in other words, the forces driving its strengths, weaknesses, opportunities, and threats.

Force field analysis takes SWOT analysis a step further by identifying the forces driving or hindering change—in other words, the forces driving its strengths, weaknesses, opportunities, and threats.

Forces that propel an organization toward goal achievement are called ---------------forces, while those that block progress toward a goal are called -------------- forces.

Forces that propel an organization toward goal achievement are called helping forces, while those that block progress toward a goal are called hindering forces.

Gaps also exist between people's expectations of __________care and situations in which they receive ________________ healthcare.

Gaps also exist between people's expectations of high-quality care and situations in which they receive low-quality healthcare.

Hospitals tend to think in terms of transactions. However, research shows that downstream revenue over the next two years is worth _____________________times the value of the original transaction.

Hospitals tend to think in terms of transactions. However, research shows that downstream revenue over the next two years is worth 2 to 10 times the value of the original transaction.

Must be done before we can begin efforts to ___________________ the strategic plan.

Must be done before we can begin efforts to operationalize the strategic plan.

Objectives and specific measurements will demonstrate how the goal is progressing. Target results indicate ________________

Objectives and specific measurements will demonstrate how the goal is progressing. Target results indicate what an organization hopes or expects to achieve.

Once strategic plans are in operation, organizations must

Once strategic plans are in operation, organizations must evaluate the results of strategic actions. Dashboards and balanced scorecards

Resources for the Plan Once the strategic plan is approved, there needs to be resources set aside to accomplish it. Budgeting is outside the scope of this course, but understand that this step is necessary.

Once the strategic plan is approved, there needs to be resources set aside to accomplish it. Budgeting is outside the scope of this course, but understand that this step is necessary. Capital budgeting Operational budgeting

One essential technique involves a discussion of an organization's strengths, weaknesses, opportunities, and threats—commonly called

One essential technique involves a discussion of an organization's strengths, weaknesses, opportunities, and threats—commonly called SWOT analysis.

are significant new business initiatives available to a healthcare organization.

Opportunities are significant new business initiatives available to a healthcare organization. Examples: Collaboration among healthcare organizations through the development of healthcare delivery networks; Increased funding for healthcare informatics; Community partnering to develop new healthcare programs; Introduction of clinical protocols to improve quality and efficiency; Increased reimbursement through value-based purchasing; Healthcare organizations with CMS Hospital Compare quality scores above the 90th national percentile are eligible for CMS pay-for-performance incentives. (See Chapter 6 for information on CMS Hospital Compare.) Increased patient satisfaction; New clinical services aligned with population health needs

Summary

SWOT analysis is a precursor to the strategic planning process. It includes a comprehensive review of the healthcare literature, in-depth data analysis, and input from a panel of SWOT analysis experts. Findings from the analysis are sorted into four categories: Strengths Weaknesses Opportunities Threats Force field analysis supplements SWOT analysis by identifying the forces driving the strengths, weaknesses, opportunities, and threats. Gap analysis may be performed to determine where deficiencies exist in an organization's delivery of care. Such analyses promote (1) a better understanding of barriers to change, innovation, and the transfer of knowledge to practice; (2) improved outcomes

an examination of an organization's internal strengths and weaknesses, its opportunities for growth and improvement, and the threats that the external environment presents to its survival. Originally designed for use in other industries, it is gaining increased use in healthcare.

SWOT analysis: an examination of an organization's internal strengths and weaknesses, its opportunities for growth and improvement, and the threats that the external environment presents to its survival. Originally designed for use in other industries, it is gaining increased use in healthcare.

Specific metrics should meet the following criteria:

Specific metrics should meet the following criteria: Importance to organization and staff Measurability Data validity Actionability

Step 1 of SWOT Once the data have been collected and analyzed, the organization's capabilities in these areas are ____________

Step 1 of SWOT

Step 1 of SWOT Analysis involves the collection and evaluation of key data. Key data comes from the two environmental assessments

Step 1 of SWOT Analysis involves the collection and evaluation of key data. Key data comes from the two environmental assessments Internal environment assessment External environment assessment

Step 1 of SWOT Depending on the organization, data might include population demographics, community health status, sources of healthcare funding, and/or---------------

Step 1 of SWOT Depending on the organization, data might include population demographics, community health status, sources of healthcare funding, and/or the current status of medical technology. Once the data have been collected and analyzed, the organization's capabilities in these areas are assessed.

Step 2 of SWOT analysis Data on the organization are collected and sorted into four categories: strengths, weaknesses, opportunities, and threats. Opportunities and threats usually arise from ____________

Step 2 of SWOT analysis Data on the organization are collected and sorted into four categories: strengths, weaknesses, opportunities, and threats. Opportunities and threats usually arise from external factors.

Step 2 of SWOT analysis Data on the organization are collected and sorted into four categories: strengths, weaknesses, opportunities, and threats. Strengths and weaknesses generally stem from factors

Step 2 of SWOT analysis Data on the organization are collected and sorted into four categories: strengths, weaknesses, opportunities, and threats. Strengths and weaknesses generally stem from factors within the organization.

Step 3 The third step involves the development of a SWOT __________ for each business alternative under consideration. For example, say a hospital is evaluating the development of an ambulatory surgery center (ASC). They are looking at two options: The first is a wholly owned ASC, and the second is a joint venture with local physicians. The hospital's expert panel would complete a separate ______________ for each alternative.

Step 3 The third step involves the development of a SWOT matrix for each business alternative under consideration. For example, say a hospital is evaluating the development of an ambulatory surgery center (ASC). They are looking at two options: The first is a wholly owned ASC, and the second is a joint venture with local physicians. The hospital's expert panel would complete a separate SWOT matrix for each alternative.

Step 4 The fourth step involves incorporating the SWOT analysis into the decision-making process to determine which ___________________

Step 4 The fourth step involves incorporating the SWOT analysis into the decision-making process to determine which business alternative best meets the organization's overall strategic plan.

Operational Plan - Example

Strategic Priority 1: Identify and Implement New Revenue Generating Services Goal 1.1: Expand geographic markets served, in order to direct additional inpatient volume to Central Hospital Objective 1.1.1: Target secondary service are zip codes in the southwestern portion of Central Hospital's service area, so that those zip codes become part of the primary service area by June 2020. Operational Plan

are current factors that have prompted outstanding organizational performance.

Strengths are current factors that have prompted outstanding organizational performance. Examples: Use of state-of-the-art medical equipment; Investments in healthcare informatics; A focus on community healthcare improvement projects; Highly competent personnel; A clear understanding among employees of the organization's goals, and a focus on quality improvement; Growth through mergers and acquisitions. These larger organizations have the ability to reach economies of scale and reduce costs in the future.

TRUE OR FALSE Operational goals should be "pushed down" into the ranks of the organization.

TRUE Operational goals should be "pushed down" into the ranks of the organization.

TRUE OR FALSE For an organization to achieve success, the driving forces must outweigh the resisting forces.

TRUE For an organization to achieve success, the driving forces must outweigh the resisting forces.

details actions needed to set the strategic plan in motion, and to accomplish the broad strategies.

The operational plan details actions needed to set the strategic plan in motion, and to accomplish the broad strategies. An "execution plan". A detailed listing of specific activities with deadlines. Responsibilities assigned to senior leaders who are held accountable for performance.

The scorecard is usually divided into several areas that the organization considers important to achieving its mission. Sometimes called ____________________For example: Human resources Patient satisfaction Financial position Quality and safety outcomes Employee professional development

The scorecard is usually divided into several areas that the organization considers important to achieving its mission. Sometimes called pillars. For example: Human resources Patient satisfaction Financial position Quality and safety outcomes Employee professional development

The strategic plan thus becomes a reality for all staff and creates a unified endeavor. Integrated into the Human Resources system - employees evaluated annually based on:

The strategic plan thus becomes a reality for all staff and creates a unified endeavor. Integrated into the Human Resources system - employees evaluated annually based on: Performance to their basic job responsibilities (Job Description) Performance to achieving annual goals, as part of the strategic planning process Every employee should have annual goals, that flow from this process.

are factors that could negatively affect organizational performance.

Threats are factors that could negatively affect organizational performance. Examples: Political or economic instability; Increasing demand by patients and physicians for expensive medical technology that is not cost-effective; Increasing state and federal budget deficits; Growing uninsured population; Increasing pressure to reduce healthcare costs; Reduced churn rate, the quantity of new patients relative to existing patients. A good target is 15 percent new patients annually; Healthcare funding cuts and additional cost containment efforts; The increasing cost of technology; Potential for reduced access to capital.

To further refine planning decisions, SWOT analysis can be supplemented by _______________, which reveals differences between the organization's current standing and its target performance.

To further refine planning decisions, SWOT analysis can be supplemented by gap analysis, which reveals differences between the organization's current standing and its target performance. Examples of gaps include lack of knowledge, lack of motivation, poor access to information, variations in patient culture and education, lack of resources, and system barriers that limit teamwork.

are organizational factors that represent: High organization's costs; Low organization's revenue; Low organization's healthcare quality; Low stakeholder satisfaction.

Weaknesses are organizational factors that represent: High organization's costs; Low organization's revenue; Low organization's healthcare quality; Low stakeholder satisfaction. Examples : Hospitals that seek to "go it alone" will find it difficult; Aging facilities and a lack of continuity in clinical processes, leading to duplication of efforts. Poor use of healthcare informatics, insufficient management training, a lack of financial resources, and an organizational structure that limits collaboration with other healthcare organizations. A payer mix that includes large numbers of uninsured patients or Medicaid patients.

With changes in reimbursement driving transactional revenue down, positive relationships with patients that produce an ongoing revenue stream from__________

With changes in reimbursement driving transactional revenue down, positive relationships with patients that produce an ongoing revenue stream from repeated and clinically appropriate visits is critical.