BASIC CONCEPTS OF STRATEGIC PLANNING

Strategic planning workshop 21-22 June 2008

Without a strategy the organization is like a ship without a rudder, going around in Quote circles.
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What is Strategy?

Strategy consists of a set of moves and approaches that management employs to run the organization

It is managements game plan to

Attract and please customers Stake out a distinctive position Conduct operations Compete successfully Achieve organizational objectives
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What is a Strategic Plan?

Where organization is headed -- Strategic vision and business mission Short and long term performance targets -- Strategic and financial objectives Action approaches to achieve targeted results -- A comprehensive strategy
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Why Are Strategies Needed?

To proactively shape how an organizations services will be delivered. To mould the independent actions and decisions of employees into a coordinated, organization-wide game plan

Strategic planning workshop 21-22 June 2008

Typical Steps in Strategic Planning

1. 2. 3. 4. 5. 6. 7.

Environmental Analysis: External & Internal Developing a Mission and Vision Setting Primary Strategic Directions & Goals Crafting Strategy and Action Plans for Each Goal Implementing and Executing the Strategy Evaluating Performance Initiating Corrective Adjustments

Strategic planning workshop 21-22 June 2008

Strategic Planning Process: The Three Big Questions

1. Where are we now? 2. Where do we want to go? 3. How do we get there?

Strategic planning workshop 21-22 June 2008

Missions vs. Visions

A mission statement focuses on current activities -- who we are and what we do

A vision concerns destination -- where we are going

Service offerings Needs being served Capabilities

Markets to be pursued Future focus Kind of organization that we are trying to create

Strategic planning workshop 21-22 June 2008

Setting Objectives

Converts strategic vision and mission into specific performance targets Creates yardsticks to track performance Pushes hospital to be inventive and focused on results Helps prevent complacency
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Crafting a Strategy

Strategy involves determining whether to

Concentrate on a single specialty or several specialties (diversification) 2. Cater to a broad range of patients or focus on a particular niche 3. Develop a wide or narrow service lines 4. Pursue a competitive advantage based on
1.

Low cost or Service superiority or Unique organizational capabilities

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Strategy -- What to Look For

Actions to diversify Actions to strengthen resources & capabilities How functional activities are managed Efforts to pursue new opportunities Actions to excel over rivals Responses to changing external circumstances Actions to alter geographic coverage Actions to merge or acquire other outfits Actions to form alliances and collaborative partnerships
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Pattern of Actions That Define Strategy

Crafting Strategy: An Exercise in Entrepreneurship

Strategy-making is a market-driven and customer-driven activity that involves

Eye for spotting emerging opportunities Observation of patients needs Innovation and creativity Strong sense of how to grow and strengthen capabilities and scope

Strategic planning workshop 21-22 June 2008

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Strategy Implementation and Execution

Implementation and execution is an action-oriented, make-it-happen process involving people management, developing competencies and capabilities, budgeting, policy-making, motivating, culture-building, and leadership
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