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Title: Strategic Plan

Authors: Geethamma Jolly

Topic: Management



Strategic Planning

Strategic planning is a completely valid and useful tool for guiding all types of organizations, including healthcare organizations. The organizational level at which the strategic planning process is relevant depends on the unit's size, its complexity and the differentiation of the service provided.

The leader of each unit is the person responsible for promoting the planning process, a core and essential part of his or her role. The process of strategic planning is programmable, systematic, rational, and holistic and integrates the short, medium and long term, allowing the healthcare organization to focus on relevant and lasting transformations for the future.

The basic concept in strategic planning is to determine a plan for the organization to undertake in the coming period, based on a vision for the future. An organization prepares a strategic plan, which involves goals for several years in the future.  Often, a plan is for 5 years, but it can be for as few as 3years.

Strategy can be defined as “the plans and activities developed by an organization in pursuit of its goals and objectives, particularly in regard to positioning itself to meet external environmental demands relative to its competition”.

By offering a roadmap for an organization, strategic planning provides a framework to coordinate efforts and support.  Other benefits include improved decision-making and communication, as well as encouraging participation by all members and increasing motivation.

 Strategy involves decisions of what should be done by a wide range of individuals in health services organizations and facilities. Planning as a management process leads to the establishment of objectives and helps to give the organization a direction that can exist in the external environment.  It is then possible to determine the methods to achieve these objectives.

A strategic plan is a set of strategies developed by top-level managers to achieve specific strategic objectives. Comprehensive strategic plans address both the internal and external environment to craft innovative strategies to leverage internal strengths and take advantage of external opportunities.


    COMMENT - 1

  • Yogesh Devidas Sonawane (Viewer) 17th Nov 2015 - 5:32 PM
    Strategic planning driven through top to bottom always works, but bottom up need to make it effective through CFS system.
    The content & paper details are good, References need to mention.
    • Geethamma (Author) 18th Nov 2015 - 11:34 AM
      Good Morning: Mr. YOGESH D. SONAWANE
      Have a Good Day!
      Thank you for your Comments,

      Strategic planning driven through top to bottom always works, but bottom up need to make it effective through CFS system

      It is a good suggestion for the Compensation for Service (CFS)

      • Employers that want to succeed in this increasingly competitive environment must have a well-designed compensation plan that motivates employees, controls compensation costs, and ensures equity.
      • The best compensation plans mirror the culture of the employer. Therefore, employers should establish a compensation philosophy. Benefits programs should also be part of an employer’s compensation strategy.
      • However, despite all it’s the advantages, the bottom-up style alone will not make your projects flourish. According to many experts, the bottom-up approach is not the perfect solution, as sometimes it lacks clarity and control. The best way is to find a balance between the two opposite approaches and take the best practices from both of them.
      • Some experts argue that traditional salary increases aren’t as connected to performance as they should be. By contrast, a well thought out performance-based bonus plan can be tied directly to the results the company sees as valuable. However, developing a performance-based compensation plan isn’t easy.
      • However, employers should also consider internal equity—that is, whether their compensation plan reflects how much they value positions in relation to other positions within the organization.
      • To ensure both internal and external equity, employers must establish an effective compensation administration program. To do this, employers must conduct:

       Job analysis (thoroughly analyze and describe each job within the organization)
       Job evaluation (determine what jobs are worth on an absolute basis and relative to other jobs in the organization, such as giving jobs that are of greater value to the organization a higher labor grade)
       Job pricing (establish rate ranges; that is, minimum, midpoint, and maximum price values for each labor grade)
      • The managing executives then realized that they needed to give more freedom to the teams and change their management style. It took quite a while to introduce bottom-up management to the organization. But, obviously, it was worth the time and effort, as New York Times employees say that collaboration became much more efficient, and team members now work together more productively.

      Thanks& Regards
      Geethamma Jolly
    • Neeraj Sharma (Viewer) 24th Nov 2015 - 4:48 PM
      Dear Dr. , Nice study!

  • COMMENT - 2

  • Molla Mekonnen Alemu (Viewer) 19th Nov 2015 - 11:27 PM
    Hi fellow researcher,
    I like your paper. I am a development practitioner and wanted to bring the issue of partnership with all concerned institutions and organizations when it comes to strategic planning. In a development context, strategic plans can be achieved when an organization shares goals among in an accountable manner. This all is therefore, to inquire a clarification if you happen to have tools or any idea on how an organization will be able to win the support of other stakeholders in achieving its strategic targets?

  • COMMENT - 3

  • Geethamma (Author) 20th Nov 2015 - 3:09 PM
    Good Morning,
    Dear, Molla Mekonnen Alemu
    Thank you for your comments. Really it is wonderful question. The following points I can explain for you.
    In developing strategic plans, including the most basic element "the mission statement", organizations must set objectives that are derived from the needs of its principal stakeholders.
    Implementation is the most difficult part of the strategic planning process. It involves achieving the objectives set out in the strategic plan while remaining alert and flexible to new opportunities as they unfold. For successful implementation, the strategic plan has to be robust in the first place.
    Mission statement helps an organization to achieve higher performance. One of the reasons might be that most of the organizations create mission statement only because it’s fashionable to do so and little effort is made to actually communicate that mission to its stakeholders.
    If an organization constantly revises its mission and treats it as a living document, it achieves higher performance than its competitors.
    Nonetheless, all of the authors agree that mission brings the following benefits.
    1. Informs organization’s stakeholders about its plans and goals
    2. Unifies employees’ efforts in pursuing company goals
    3. Serves as an effective public relations tool
    4. Provides basis for allocating resources
    5. Guides strategic or daily decision making
    6. Shows that a organization is proactive.
    Using key performance indicators, the management process will compare what was desired with what actually happened.
    Service Strategies can help you create a comprehensive strategic plan, KPIs and goals to lead your organization to the next level of performance. The plan will provide a three to five year roadmap to guide your organizational development and help eliminate the chaos that can result from poor planning.
    We use our proven planning processes to collect input from executives, individual contributors and other key stakeholders to ensure the plan is aligned with corporate objectives. The customer service strategic plan will allow you to prepare for and implement the strategies and tactics necessary to achieve your organizational goals and objectives.
    Our strategic planning process will take into consideration a number of critical factors associated with the service business including:
    • Market conditions that impact growth and service demand
    • The state of the organization, performance gaps and areas for improvement
    • Service level targets necessary to meet customer satisfaction goals
    • Resource requirements to meet projected service demand
    • Staff training and development initiatives
    • A review of the Service offering portfolio
    • Service tools and systems to enhance efficiency and productivity
    • The financial plan for the organization
    • And more…
    Our Approach
    Service Strategies consultants will facilitate meetings, conduct research, identify requirements and gather the necessary data to develop the strategic plan for the service operation. We also create the planning documents and provide an executive presentation to communicate the strategy to senior management and the staff
    We will evaluate the current organizational structure, interview key management personnel and determine if the current functional structure is aligned to meet your future strategic objectives.
    Our Approach
    Service Strategies’ consultants will conduct a high level assessment and provide a report outlining our recommendations for restructuring the organization. We will also provide an implementation plan that will help you:
    • Streamline the Organization Structure
    • Define Span of Control and Accountability
    • Develop Measurable Management Objectives
    • Create Key Performance Indicators and Scorecards
    • Implement Incentive Compensation and Reward Plans
    • Assist in Developing Management Position Descriptions
    • Assist in Defining Management Skills and Training Requirements
    Service Strategies can help you design an effective set of value added Service Offerings and Programs to meet your clients needs and generate revenues for the organization. Organization must understand the service requirements important to their customers and a set of programs that deliver real value.
    Service Strategies will examine the fundamental service requirements important to the customers and help you design and implement a set of offerings and programs to meet their needs. We are examining response and resolution commitments, delivery requirements, value added components and the economics associated with delivering the offerings, based on the market segment. Our approach includes a number of steps including:
    • Develop customer segmentation strategies for the design of new service offerings
    • Interview customers from each segment to validate their service requirements
    • Assess the capability of the organization to deliver the new service offerings
    • Identify gaps in delivery capabilities and make recommendations to close them
    • Design new service programs with marketing involvement
    • Create pricing models for the new programs and offerings
    • Help develop the service infrastructure to deliver new service programs
    • Assist in developing and delivering marketing training
    • Assist in launching the new service programs
    • Monitor client acceptance and satisfaction
    • Review service revenue growth and costs
    Service Strategies will deliver a comprehensive analysis and customer segmentation strategy, along with a proposed set of service offerings and programs. In addition, we will provide an assessment of delivery capabilities, identify gaps and provide improvement recommendations to ensure your organization is ready to deliver the new offerings effectively.
    Service Strategies will deliver a comprehensive analysis of the performance of the current service model in a SWOT (Strength, Weakness, Opportunities and Threats) format. In addition, we will provide improvement recommendations, suggest an optimum service model for our organization and offer follow on service to help implement changes.

    Thanks &Regards
    Geethamma Jolly

  • COMMENT - 4

  • ISAAC TANDOH (Viewer) 23rd Nov 2015 - 5:25 PM
    Dear Jolly,
    Thanks for the insight you are sharing with your paper on strategic plan. If I may ask in the face of this volatile competitive environment how often should a plan be visited. Should it be three to five years as you Indicated? I have seen some organisations operate for 20 years with out a change in their mission statement? Is it correct and at what stage should a mission statement be changed? May I politely know if your paper is an article, essay or a review?
    Good work. the paper is very detailed.

  • COMMENT - 5

  • Geethamma (Author) 24th Nov 2015 - 10:56 AM
    Good Morning: Isaac Tandoh
    Thank you for such a wonderful questions,
    The competitive structure of an industry can be analyzed using Porter's five forces.
    It provides a framework that shows that an industry is influenced by five forces, as follows:
    1- The threat of new entry
    2- Threat of rivalry
    3- Threat of substitute
    4- Threat of buyers’ (patients)
    5- Threat of suppliers
    • Competitive analysis involves taking stock of the number and nature of competitors presenting a direct or indirect threat to a business.
    • Competitive analysis can provide aspiring entrepreneurs with a clearer understanding of the marketplace conditions in an industry they are considering breaking into, or help established businesses refine their strategic directions.
    PESTEL Analysis
    As part of the external analysis, a deep analysis of the current situation of the place that directly and indirectly affecting the organization.
    There are many factors in the macro-environment that will affect the decisions of the managers of any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyze these factors managers can categories them using the PESTEL model
    Using PESTEL analysis
    • The external environment is tremendously complex and dynamic.
    • Take your eyes off it for a moment and you may find there has been a significant change in the competitive landscape. This is why PESTEL analysis really needs to be undertaken on a regular basis.
    • However, even then it does not ensure that every significant change will be identified.
    • When using PESTEL analysis managers must be prepared to look all around them and question their assumptions!

    There are key elements to look for within your organization that will indicate to you that your mission statement may need to be reviewed for updating

    The two easiest ways to know when to update your mission statement are:
    • Your organization accomplished their current mission statement.
    • Your organization updated their Vision.
    Other Indicator:
    • Revising your Mission statement some indicators of the stagnation stage
    • Lack of adaptive capacity; usually due to problems with board or executive management
    • Declining communication
    • Lack of staff
    • Reduced commitment of activity
    • Loss of funding
    6 steps to Revising your Mission statement.
    • Reviewing your existing Mission statement
    • List current objectives
    • Renew your passion
    • Recognize the changes
    • Write your revised Mission statement
    • Communicate the new Mission!

    I would like to inform that the strategic plan it’s my own work based on my organization and I used mentioned References.
    Thanks& Regards
    Geethamma Jolly

  • COMMENT - 6

  • RODRICK SAKAMBA (Viewer) 24th Nov 2015 - 10:34 PM
    Greetings Gee thamma Jolly
    This was excellent Strategic plan for Thuriah Medical Center; but l have few questions dear;
    Why vision statement of the Thurriah is not on the first page?
    Why the mission statement is so detailed? L thought it should short and brief so that your client can easily remember it.
    Why not starting with the following format? Step by step; vision of statement, mission of statement, objectives of the firm and end with types of corporate strategy, tools selected for external strategy, internal strategy of course with justification. Again on your strategic plan the sum of your budget for three years was not clearly illustrated. Why?
    Good luck

  • COMMENT - 7

  • Geethamma (Author) 25th Nov 2015 - 11:11 AM
    Good Morning, SAKAMBA RODRICK
    Thank you for your comments, I would like to explain for you
    The vision, mission and values of the organization are foundational elements of SWOT (strength, weaknesses, opportunities, threats)
    • Evaluate internal strengths and weaknesses against external opportunities and threats to determine strategic priorities
    • Use the SWOT analysis to set priorities, objectives, goals, action plans and performance measures.
    Then you can clearly focus with the Vision statement
    “Vision is a statement that expresses organization’s ultimate objectives.”
    If the organization puts enough efforts in creating vision statement, it results into following benefits:
    • Motivates and inspires employees
    • Provides one purpose to work for
    • Sets the stretch goals (goals that are impossible to achieve with current resources and capabilities)
    • Guides managers in effectively allocating resources
    So our center preferred after the SWOT analysis to focus the Vision statement

    A mission statement should say who your company is, what you do, what you stand for and why you do it.
    An effective mission statement is best developed with input by all the members of an organization.
    The best mission statements tend to be 3-4 sentences long.
    Mission - general statement of how you will achieve your vision.

    You can read the Table of Contents and then you can understand why I use that steps.

    Thank You
    Geethamma Jolly

  • COMMENT - 8

  • RODRICK SAKAMBA (Viewer) 25th Nov 2015 - 10:55 PM
    Well done Geethamma Jolly for your quick response Good Luck!!!!!!!!!!!!!!!!!!!!!!!!!!!