2strategic planng

7/31/2019 2strategic planng

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STRATEGICPLANNING


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A systematic process through whichan organization agrees on, and buildscommitment among keystakeholders to priorities that areessential to its mission, and areresponsive to its environment.

(Allison & Kaye 2005)


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A creative process for identifying

and accomplishing the mostimportant actions in view oforganizational strengths,

weaknesses, opportunities andthreats .

(A.D Chandler 1962)


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PURPOSE

To assist in establishing priorities

and to better serve the needs ofthe members.

It gives the direction to

organization Improves efficiency, weeds out

poor or underused programs.

Eliminates duplication of efforts.


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Concentrates resources onimportant services, improves

communications. Coordination of activities.

Provides a mind expandingopportunity.

Allows adaptation to the changingenvironment.

Sets realistic and attainable yetchallenging goals and helps ensuregoal achievement.


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A GOOD STRATEGIC PLAN SHOULD BE:

Feasible

Measurable

Time specific Flexible

Inspiring

Inwriting


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STRATEGIC PLANNING PROCESSMission and Objectives

Environmental Scanning

Strategy formulation

Strategy implementation

Evaluation and Control


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Mission and Objectives Mission statement is the agreed

upon statement by theorganization and explains thereason for its existence.

It is necessarily broad toencompass the diversity withinthe organization.


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Does not need to be periodicallyreviewed by the association to

see whether it encompasses allof the relevant activities of theorganization.

It guides the pursuit of futureopportunities


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Environmental Scanning

It includes

a) internal analysis of the firm

b)Analysis of the firms industry (taskenvironment)

c)External macro environment (PESTanalysis).


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The internal analysis

identify the firms strengths andweaknesses.

The external analysis

reveals opportunities and threats.

A profile of the strengths,weaknesses, opportunities andthreats are generated by means ofa SWOT analysis.


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A SWOT analysis

worksheet is helpful. Each quadrant of paper is

labeled as one of the 4

catagories Appropriate factors are

listed in each quadrant for

meticulous view of thesituation audit.


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Internal strength or weaknesses may

include:

management development

qualification of staff

financial situation market share

facilities

location quality of services


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Threats may be:

shortage of nurses,

decrease in patient satisfaction, decrease in insured patients,

increase in account receivable,

decrease in demand for services,

competitions,

legislative changes, loss of accreditation .


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Opportunities include:

nurse and physician referral

patterns, new programs,

new markets,

population growth, improved technology

new facilities.

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An industry analysis can be

performed using a framework

developed by Michael Porter knownas Porters 5 forces. It include :

barriers to entry,

customers, suppliers,

substitute products

rivalry among competing firms.


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The macro environment analysis

includes :

Political Economic

Social

Technological factorsReferred to as PESTanalysis.

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Strategy formulation:

the firm should match its strengthsto the opportunities that it hasidentified.

To attain the superior profitability,the firm seeks to develop acompetitive advantage over its rivals.


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Strategy implementation:

The selected strategy isimplemented by means ofprograms, budgets andprocedures.

Implementation involves

organization of the firmsresources and motivation of thestaff to achieve objectives.

E l i d C l


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Evaluation and Control:

The results of the strategy need tobe measured and evaluated, withchanges made as required to keepthe plan on track.

Control systems should be developedand implemented to facilitate thismonitoring.

Standards of performance are set,the actual performance measured,and appropriate action taken toensure success.


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DRAWBACKS The plan may not turn out as well as

expected.

Strategic planning is worthless in

getting an organization out of majorcrisis.

If the planning process itself isweak, the resulting plan may beweak and not satisfactory to the

organization

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2strategic planng