CH 5 health management

What is the purpose of tactical plans? Selected Answer: A. Identify the who, what, where, when and how of implementation. B. Organize a department's input to the strategic plan. C. Identify funding for the selected strategies. D. Monitor an organization's performance over time. E. None of the above.

A. Identify the who, what, where, when and how of implementation.

Which of the following should be a major consideration in collecting leadership input to development of the strategic plan? A. Input will necessarily be value laden. B. The tenure of leadership. C. A sample size of at least 8 leaders is necessary. D. The cost of collecting the data.

A. Input will necessarily be value laden.

Which of the following is not part of the market assessment model? A. Power of Hospitals B. Innovations in Technology C. Regulatory Environment D. Power of Consumers and Payers E. Competitive Rivalry

A. Power of Hospitals

What is the main purpose of strategic planning? A. To identify how market forces may affect the organization. B. To develop a multi-year vision for where the organization wants to be. C. To plan for expansion of key service lines. D. To adapt to the moves of competitors.

A. To identify how market forces may affect the organization.

Why is it important to include past strategic performance as a part of future strategy development? A. Understanding why past strategies succeeded or failed can help with future strategy success. B. Past strategic performance should NOT be included in future strategy development. C. It applies historical market share to future strategies. D. It gives the best indication of the funding necessary to support the plan. E. None of the above.

A. Understanding why past strategies succeeded or failed can help with future strategy success.

Which of the following is not a critical success factor for effective strategic planning? A. Tactical plans for individual strategies. B. Business plans for individual service lines. C. All supporting plans (e.g. financial, marketing) are tied to the strategic plan. D. Communication of the plan to all stakeholders. E. Breadth and depth of leadership involvement in development of the plan.

B. Business plans for individual service lines.

Which aspect(s) of the SWOT analysis aim to identify external market forces? A. Organizational Assessment. B. Market Assessment C. Weaknesses.. D. Opportunities and strengths. E. None of the above.

B. Market Assessment

Which of the following statements about the inclusion of key financial indicators in the planning process is true? A. Budget targets should have a margin of +/- 5%. B. Pricing and/or rate setting arrangements should be included. C. Historical data should be included, but not forecasts since the plan has not yet been completed. D. The financial reserves of an organization need not be considered.

B. Pricing and/or rate setting arrangements should be included.

How do the Mission, Vision and Value statements tie to the strategic plan? A. They identify a specific future state of the organization. B. They are reaffirmed during the planning process to ensure they are aligned with future strategic directions. C. They are enduring statements of the organization's purpose. D. They help to change the organization's culture. E. They help to identify specific market opportunities and threats.

B. They are reaffirmed during the planning process to ensure they are aligned with future strategic directions.

Why is it important to consider Innovations in Technology in development of the strategic plan? A. New technologies tend to be expensive. B. They may represent a threat of substitute products. C. Medicare will not reimburse for them. D. A successful organization must have the latest in medical advances. E. None of the above.

B. They may represent a threat of substitute products.

Which of the following statements is/are true? Selected Answer: CorrectC. Resource availability should be considered when selecting strategies. Answers: A. The more fiscally sound the organization, the more strategies it should execute for the best success. B. Generally, the riskiest strategies have the largest payoff. C. Resource availability should be considered when selecting strategies. D. As a rule of thumb, a well-governed organization should be able to successfully execute 4-6 strategies per year. E. C & D.

C. Resource availability should be considered when selecting strategies.

What is the purpose of an organizational dashboard? A. To report on the strategic plan in a simple format to the Board of Directors. B. To alert management to competitors' moves. C. To facilitate management discussion regarding execution of strategies. D. To monitor market activity for later input into the strategic planning process. E. To provide data on operations in a quick view format.

C. To facilitate management discussion regarding execution of strategies.

Why is execution of the strategy so important? A. Without execution, none of the strategies will be funded. B. It brings in revenue. C. It helps to make all organizational stakeholders feel like part of the team. D. The strategic plan is useless unless it is executed appropriately.

D. The strategic plan is useless unless it is executed appropriately.

How can intelligence on competitors' strategies best be gathered? A. Observation of their market activities. B. Tracking of their service volumes and market share. C. Checking with state healthcare associations. D. All healthcare organizations are required to file their strategies with Medicare on an annual basis. E. A & B.

E. A & B.

Which of the following is necessary for successful strategy execution? A. Strong leadership B. Cash reserves C. Organizational buy-in D. Knowledge of competitors' strategies E. A & C

E. A & C

An example of a supporting plan that is driven by the strategic plan is A. Marketing plan B. Capital plan C. Operating plan D. Personnel plan E. All of the above

E. All of the above

What are the components of Strategy Execution? A. Monitoring and Control B. Rollout and Implementation C. Strategy Tactical Plans D. Strategy Identification and Selection E. All of the above

E. All of the above

Which of the following stakeholder groups should not be included in strategic planning? A. Senior Leadership B. Board of Trustees C. Medical Staff D. Community leaders E. All of the above should be included as appropriate

E. All of the above should be included as appropriate

What is the department manager's role in strategic planning? A. Monitor market activity and report to senior leadership. B. Maintain knowledge of organizational strategy and intent. C. Ensure subordinates understand the organizational strategy. D. Identify ways to support the organization's strategy. E. All of the above.

E. All of the above.

What is the purpose of the planning assumptions in development of the organizational volume forecast? A. To fill in gaps of missing data. B. To provide a "best guess" of which service lines to invest in. C. To account for changes in technology, demographics and other market forces. D. To account for competitors' future actions. E. C & D

E. C & D