HCA-451 Ch1, 2
Examples of non financial in measuremen of financial terms is?
1. ALOS 2. occupancy rate 3. outpatient rev as percentage of total revenue (higher is better) 4. FTEs
What does functional strategy may include?
1. Clinical/medicine 2. ancillary 3. support
How can you distinguish advantage through activities?
1. Different activities 2. Same activities but perform them different 3. Same activities but Lower cost activities than competitors
What does support include in functional strategy?
1. EVS 2. Dietary 3. Facilities
What are the advantages of core competencies?
1. Low infections; minimum med errors 2. process to move drug through FDA 3 research discoveries 4.accurate medical claims 5.scheduling;
Levels of strategy include ?
1. Organizational wide 2. strategic business unit (SBU) 3. Funcational strategy
Process for assessing the General external environment ?
1. Process begins by *identifying the environmental forces that may have some impact*positive or negative on the organization or business.
Who decides the measurement of csutomer in health care? e.g.
1. Pt (prothrombin time which is physical therapy) 2. Primary care provider ( PCP ) 3. insurance
What are the three types of strategic planning?
1. Strategic 2. Operational 3. Tactical
List of Mangment Goes wrong?
1. The firm takes A PASSIVE REACTION APPROACH EXTERNAL EVENTS rather than an aggressive proactive one. 2. the strategic plan is CREATED AT THE TOP OF THE ORGANIZATION AND HANDED DOWN without further input from other parts of the organizations. 3. MANAGMENT FAILS TO BUILD A CONSENSUS around the plan before trying to implement it. 4. THE STRATEGIC INITIATIVE BEGINS AND ENDS WITH THE PLAN, little attention is given to actual implementation 5. THE PLANNING PROCESS GET STUCK IN THE "ANALYSIS PARALYSIS". 6. The organization follows the plan unquestioningly throughout its term, which may be as long as five years, despite substancial change in the organization's external and internal environments. (FOLLOWS WITHOUT QUESTION, NO REVISION) 7. Because of low risk tolerance and a fear of failure, the strategic planners set MODEST, UNAMBITIOUS GOALS. (LOW RISK) 8. There is a LACK OF TOP MANAGMENT SUPPORT for the strategic planning and managment effort 9. Strategic planning is CONDUCTED separtely from or totally WITHOUT FUNCTIONAL AREA PLANNING. 10. THE PLAN FAILS to address crucial strateic issues because they seem TOO DIFICULT OR TOO NUMBEROUS. 11. the strategy implementaitno phase LACKS FLEXIBILITY AND RESPONSIVENESS TO SUBSEQUENT CHANGES IN THE ENVIRONMENT. 12. the plan does NOT ADDRESS OR FOCUS ON THE MOST CRITICAL ISSUES.
What is the strategic planning process?
1. adress opportunity 2. problem or change in the environment. 3. on going process
What are the 12 key dimensions of strategic planning?
1. affects long term well being 2. felt throughout the entire organization 3. requires major resources and commitment 4. pursue only a few strategies at a time 5. do something it is not doing 6. creates the best fit between mission and external environment 7. strength of commitment to change versus reluctance not to. 8. long time horizon 9. builds on and exploits resources and abilities 10. aimed at gaining a competitve advantage 11. future oriented with risk 12. success requires integrated collaboration.
What is financia tangiblel resource ?
1. cash flow 2. credit rating
What is organizational tangible resource ?
1. control & reporting systems 2. integrated cost management 3. service line structure
An example of core competency is Mac Donald's consistency businesses?
1. customer service 2. inventory 3. price 4. location (MD specilsts, Pitcher 95 mph)
what are some unanticipated behaviors of intended and actual strategy?
1. customers behavior 2. competitors reactions 3. strategic support 4. suppliers 5. legislators 6. stakeholders 7. allocations of resources 8. money 9. employee support 10. management support 11. hidden agendas & politics
What is the combination strategic use?
1. deploy them together (people and technology)
What are the strategic uses for resources & competencies?
1. discovery 2. creation 3. combination 4. preservation 5. concentration
What is preservation strategic use?
1. do not allow them to disappear
What are examples of techological environmental force?
1. drugs 2. imaging 3. minmally invasive surgery procedures 4. genetic mapping 5. gene therapy 6. vaccines 7. screening prventative procedures 8. electronic records
What are some examples of social/demographic environmental forces?
1. ethinicity more diverse 2. consumer driven healthcare (better educated) 3. income disparities (commerical, medicare, and medicaid) 4. Forced insurance mobility from plans (employers changing, plans changing, jobs changing 5. Labor shortages, nurses, PCP's
What are some tangible resources that can be grouped?
1. financial 2. organizational 3. physical 4. technological
What are the 3 approaches to exam and understand the internal functions of an organization & implement strategies?
1. finanical performance 2. resource and competencies 3. value chain.
Some benefits from Strategy Planning & Managment?
1. grow operations 2. create the future 3. increases the likelihood of acutally arriving where you want 4. it creation forces a development of clearer sense of strategic vision 5. motivates higher levels of organizational and individual achievement 6. requires focus on what is strategically important 7. acquires a better understanding of its environment 8. employs its resources more efficiently 9. encourages imagination, innovation and forward thinking 10. establishes metrics for success 11. orchestrate and synchronize the efforts of people and departmentts 12. secures and prepares for the future.
What are some examples of intangible resources?
1. human 2. creative 3. perceptual.
What is the measurment of current financial strenght/ performance in financial terms?
1. indicator of viability 2. success of strategic initiatives
What are the 3 components of a firms external environment ?
1. industry 2. market 3. environmental forces
What is CREATIVE intangible resource?
1. innovation 2. problem solving
What are the different kinds of strategy development paths that may occur within an organization?
1. intended 2. implemented 3. acutal 4. emergent 5. never actualized
What are the environmental forces that affect strategy making?
1. legislative/political 2. economic 3. social/demographic 4. technological 5. Industry
What does clinical/medicine include in functional strategy?
1. med/surg 2. ob/gyn 3. surgery
What is creation strategic use?
1. must be willing to create new assets
Revolutionary strategy is more?
1. needed 2. high risk
Why is it important to be able to identify significant resources or competencies?
1. new strategies have a foundation in resources and competencies 2. what if it lacks resources or competencies 3. competitors will target weaknesses
What does systems include ina internal value chain ?
1. patient flow 2. billing 3. others.
What are some barrier to strategic managment?
1. poor reward structure & no positive reinforcement 2. opertional, tactical or crisis managment focus- *not long term thinking* 3. fail to realize efforst now for the future 4. no prior experience 5. believe that all is well 6. unpleasant prior experience 7. believe in 100% success or refuse to engage 8. vested in the status quo.
What is competencies?
1. product of a combination of resources 2. most important is human resources
What is technological tangible resource?
1. proprietary technologies (A. patients B. copyrights C.trade marks D. trade secrets
What does ancillary include in functional strategy?
1. radiology 2. lab 3. cardiovascular labs 4. physical therapy
What is physical tangible resource?
1. real estate 2. buildings 3. equipement 4. geographic location
What is PERCEPTUAL intangible resource?
1. reputation with customers or supplier 2. politicans 3. strategic partners
*How to measure financial performance in terms?
1. sales 2. market share 3. profits 4. free cash flow 5. external capital sources 6. hurdle rate 7. shareholder values 8. current financial strenght/performance 9. balance sheet 10. operating statements 11. non financial
What is industry (competive) environmental force?
1. small start ups biomed-biotech 2. consolidation in ehalth plans and hospitals 3. unrelenting cost pressure.
what is HUMAN intangible resource?
1. staff skills 2. management 3. morale
What is strategic thinking?
1. the ability constantly to view an orgnaization's operations, issues, and problems in a very broad situational and environmental context and with a very long time perspective.
The organizations makes adjustments to strategice because?
1. to satisfy and reward its STAKEHOLDERS 2. to pursue and fulfill its MISSION 3. and to SURVIVE.
What is tangible?
1. visible 2. touchable 3. measureable
Ch 2
Ch 2
Ch 3
Ch 3
Chapter one
Chapter one
Is an example of difficulty conducting a general external environment assessment (conditions) ?
Conditions in the environment are changing too rapidly for the business to keep up
What is funcational strategy?
Department and e.g. 1) R&D 2) production/manufacturing 3) HR 4) Finance
Process for assessing the General external environment ?
In addition to basic forces in the general environment, critical issues specific to the organization, its industry, and its customes are indentified.
What is Strategic Business unit (SBU)?
Is service line or product
What is Tactical strategic planning?
L) Lower end activities in smaller segments V) Very few people impacted F) few days or weeks
What is operational strategic planning?
N) narrrow subgroup (departments) L) less than a year M) Modest cost
What is strategic planning?
W) Widest scope A) affect the largest of employees T) takes long C)costs a lot
Internal value chain flow of activities for production or services rendered note interdependencies &?
activities that incur the most cost, and look for outsourcing
What is technological environmental force?
all can help gain or reduce compettive advange
Strategic benefits of a general external environment assessment process ALLOWS?
an organization to align itself with its environment
What is the econimic environmental force?
available funds
Why do strategic planning ?
because of 1. competition 2. grow volume 3. grow market share 4. increase revenue 5. add technology 6. add services 7. improve quality and outcomes 8. improve costs, processes, services, and reputation.
What is the social/demographic environmental force?
boomers increase the elderly, greater life expectancy
What is the measurment of external capital sources in financial terms?
borrowing ability
A manageable number of environmental categories, forces, factors, & issues are selected for?
clsoe, systematic monitoring.
If the organization has never performed an environmental assessment before, it will?
conduct an initial appraisal to establish a baseline of knowledge.
It is important at this point to determine the information sources that wil be?
consulted on each of the environmental forces and issues.
What is the measurement of hurdle rate in financial terms?
cost of capital
Using the information gathered, the organization also endeavors to forecast future?
directions, trends, and changes in the selected factors and issues.
What is the legislative/political environmental force?
expect more efforst to slow rising costs ot the budget
What is the measurement of operating statements in financial terms?
financial performance of operations in a period of time
A rough analysis is made of the possible impact of the numerous?
forces and issues identified on the organization's strategic plans.
Lack expertise is an example of a difficulty of conducting ?
general exernal environmental assessmnet
When a business does not have sufficient resources (money,people) this a difficulty of conducting?
general external environmental assessment
The value of an environmnental assessment process depends on?
greatly on how quickly that environment is evolving/changing
What is the measurment of free cash flow in financial terms?
how much cash is left after firm meets its operating and cash commitments
System thinking affects the external environment's?
impact and/or response.
^^^What is the environmental forces component of external environment?
influence the firms choice of straegies and how successfully it is able to implment them
*What is the very first step in a strategic planning and management process?
is an ORGANIZATIONAL SELF-EXAMINATION , an internal audit of what the organization has to work with.
What is the measurement of shareholder values in financial terms?
leads to severl generic rules for maintaing for increasing that value
Intended versus actual strategy the theory makes it seem like its a
linear process
Events that occur in the external environment affect the?
organizations plans and actions
When conducting with general external environment assessment volume of info can be?
overwhelming
Process for general external environmental establish _____? & changes in the __________ & _______________
points when action will be taken; issues; factors
What does the value chain's process include?
purchasing products and systems
What is core competencies?
real competitive advantage
Incremental strategy is less?
resistance
What is the concentration strategic use for assets?
right resource for the right purpose
Which measurment has customers that decides for them in health care?
sales, market share, profits
What is the measurement of balance sheet in financial terms?
snap shot of financial position
What is the measurement of non financial in financial terms?
specific to healthcare
Resources that are grouped can be both?
tangible and intangible
*An internal audit is conducted at?
the corporate and strategic business unit (SBU) levels of an organization.
^^^What is the industry component of external environment?
the firm is active and the competing firms that it must deal with there
^^^What is the market component of external environment?
the firm is trying to sell its products and services and the customers who make purchases there.
The common denominator of current operations and future strategies in most organizations is ?
the money
the Analysis of Historical and Current Financial Performance is about?
the money
Resources are?
things owned, tangible or intangible
The purpose of the first step in strategic planning is?
to IDENTIFY THE ASSETS (both strong & weak) that the organization possesses for EXPLOITING OPPORTUNITIES AND RESISTING THREATS in its external environment.
What is an intangible resource?
unseen