One of the most
important steps in implementing strategy is to effectively and efficiently
communicate what the organization’s goals and strategic objectives are. Implementing
a successful strategic plan can be achieved by creating a cohesive corporate
culture.
The first step in creating corporate culture is to communicate what the
organization’s mission, vision, values and goals, and strategic objectives statements
are. These statements communicate and provide specific organization-wide
standards by which strategic plans and performance are judged. Moseley (2009).
In other words, it provides the organization’s members with guidelines and aids
the company in viewing its competencies and resources that are critical to
accomplishing its goals.
Krentz, DeBoer,
& Preble (2006), states, “Charting a successful course in today's
competitive market requires healthcare organizations to employ a rigorous strategic
planning process,” (p. 1). In order to employ a strategic planning process, the
planner must utilize and communicate strategic metrics to measure their
progress. Organizations must know what resources and competencies it has in
order to achieve its goals. Resources and competencies can be either tangible
or intangible according to Moseley (2009). These terms also translate in to
what the organization’s strengths and/or weaknesses are. An organization is as
only good as its resources and competencies that are combined to carry out the company’s
vision. Another critical area of an organization’s success is monitoring its
external environments.
External
environments can be monitored by dedicating formal environment assessment
systems that are managed by specific individuals who are skilled and
knowledgeable. It is important to have the right people in the right place. These
individuals gather information and communicate the conclusions to the
appropriate managers who are responsible for identifying the environmental
forces either negative or positive. One of the best tools to utilize to
understand an organization is Michael Porter’s Five Forces Models, which
encompasses competitive intensity; threat of competitors from outside the
industry; availability of equivalent, substitute products; bargaining power of
buyers or customers; and bargaining power of suppliers or employees. According
to Moseley (2009), “The Five Forces analysis and industry understanding
provides a solid backdrop for a firm’s strategic decision making,” (113). In
other words, Michael Porter’s Five Forces Model provides managers with sound
information they can communicate effectively to its members regarding strategic
objectives. Strategic objectives should be challenging, yet obtainable. Let us
now look at market and customers.
Moseley (2009)
states, “Market and customers make up one of the three major components of the
external environment,” (p. 75). Analyzing the market and its segments are
important to strategic planners in how they define what products and services
they will sell to various demographic and geographic areas. Some health care
organizations such as Mayo Clinic have a wide range of geographic and
demographic locations. In other words, according to Moseley (2009), “Mayo
Clinic can deliberately promote themselves to patients living anywhere in the
country,” (76). It would appear that organizations that strategize to provide
better-coordinated care must have buy-in organization wide if they desire to
achieve their goals to be profitable and have better health outcomes for their
patients.
Reed Abelson’s
(2013) article called “The Face of Future Health Care,” states, “Kaiser
Permanete is often the model they have in mind,” (para. 1), regarding
better-coordinated care. He goes on to say, “Kaiser has sophisticated
electronic records and computer systems that after 10 years and $30 billion in
technology spending -- have led to better-coordinated patient care…,” (para.
2). Lastly, Abelson (2013) says, “The days when doctors, hospitals, and other
providers are paid separately for each procedure will disappear eventually…,”
(para. 13). It would appear that implementing a strategic plan such as Kaiser’s
in utilizing integrated systems that allow the organization to communicate
internally and externally is essential to its success and can be used a model
for other health care organizations to gain sustainable competitive advantage
and achieve its goals.
In conclusion, health
care organizations that desire to have a sustainable competitive advantage over
their competitors must develop strategic and program planning processes and
communicate those processes effectively and competently to all of its
members. The first step in any
organization is to provide its members with strategic direction. Strategic
direction can be achieved by first creating the mission, vision, values, and
strategic objective statements. In the every changing industry of health care, it
is essential for an organization to utilize strategic objectives to push the
organization towards achieving its mission and vision by having the resources
and competencies it needs to achieve its goals. An organization must first
analyze its past, current, and future development and then implement a
strategic plan. There should be identifiable and accountable individuals who
are responsible for communicating data and information in order to achieve the organizations
strategic objectives. In other words, organizations must have skilled and
knowledgeable people that can communicate effectively. Strategic objectives
should be challenging, yet achievable. Organizations that have strategic
processes in place such as, Mayo Clinic and Kaiser seem to lead the industry and
communicate those processes effectively to its members. With the many
challenges in the future direction of health care organizations can position
themselves by communicating to its members that the goals and strategic
planning is to offer better quality products and services and qualified staff,
which will allow for better health outcomes.
References:
Abelson,
R. (2013). The face of future health care.
Retrieved from http://www.nytimes.com/2013/03/21/business/kaiser-permanente-is-seen-as-face-of-future-health-care.html?pagewanted=all&_r=1&
Krentz,
S. E., DeBoer, A. M., & Preble, S. N. (2006). Staying on course with
strategic metrics. Healthcare Financial Management, 60(5), 86-93. Retrieved
from http://search.proquest.com/docview/196376703?accountid=32521
Moseley,
G.B. (2009). Managing health care
business strategy. Sunbury, MA: Jones & Bartlett.
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