The world of the healthcare environment is fast-paced and implementation of new healthcare technology requires an organization to have a strategic management plan. Subsequently, in order to start building the strategic management plan one must understand the external competitive forces that influence a strategic management plan by doing an environmental analysis, which is the first step involved with strategic planning and strategic thinking to understand the external environment (Ginter, Duncan, & Swayne, 2013, p. 40). Environmental analysis involves assessing the “trends, events, concerns in the general environment and in the healthcare industry, and the service area” (Ginter et al., 2013, p. 41). Moreover, environmental analysis attempts …show more content…
54). The first step in forecasting is to develop the opportunity or threat with different alternative conclusions, which is most useful when using a brainstorming method (Ginter et al., 2013, p. 54). In addition, there is a need to identify the associations between the tendencies, changes, predicaments, and or likelihood of events and the environmental categories (Ginter et al., 2013, p. 54), such as the judicial/political environment of the Affordable Care Act. In doing so, it will allow management to see the possibilities of how these issues can affect the future of the company. In turn, this allows the management team to build a better strategic plan, so that the healthcare business has longevity in the fast-paced environment. However, one must assess all the information proposed from the scanning, monitoring, and forecasting of the potential threats or opportunities to the healthcare …show more content…
Therefore, within 2 miles of the previous hospital Henry Ford built a health-center in Woodhaven that was interoperable within the Henry Ford Health System, but provided the necessary medical needs of the community (Henry Ford Health System, 2011). In doing so, the Henry Ford Health System ensured that the public would not go to the competitor, which at that time was the Oakwood Health System. Perhaps the most striking result of a healthcare organization reacting to external environment occurred when the Beaumont Health System merged with Oakwood and Botsford. Beaumont merged with the other two health systems in anticipation of the Affordable Care Act (ACA) severely affecting the profitability of the healthcare organization (Greene, 2014). Thanks to the environmental analysis of the external environment, Beaumont is now the third largest organization in Michigan, but it has now become a strong competitor against the Henry Ford Health
Determined healthcare systems routinely examine their environments internally and externally to locate significant trends and forces in the present and for the future which will have an effect on their performance goals and mission efforts. These healthcare systems understand who their stakeholders are, their needs and how best to meet those expectations and needs. These systems give attention to specific efforts on accomplishing goals that acquire opportunities in the whole environment while they continue to adjust their internal structures and functions. Precise aims are dealt with by uninterrupted sequences for performance improvements. Strategic directions for systems originate from the mission and directives. Strategic directions are identified by observing key stakeholders, addressing their interests and being proactive about responding to current, as well as, future shifts and trends in the systems’ entire environment (Skinner, 2001).
A strategic planning process is developed from a SWOT analysis (Harrison, 2010). When a nurse begins to plan strategically, this entails organization, adjustment and management to strengthen operations within the healthcare organization (Nelson-Brantley & Ford, 2017). Due to an ever-changing environment within a health
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
The administration and organization of health care systems, hospital networks, and other health care settings can greatly affect health outcomes, quality of care, and patient satisfaction. One of the historical challenges in the health system has been the identification and collection of meaningful data to measure an organizations progress towards the achievement of its strategic goals and the concurrent alignment of internal operating practices with this strategy (Devitt et.al Health Q. 2005). The strategic management System (SMS) aligns organizational planning and performance measurement, facilitates and appropriate balance between organizational priorities and resolving ‘local problems, and encourages behaviors that are consistent
Background Information In implementing a strategic plan for Coastal Medical Center, our consulting team has conducted many analyses and formed numerous strategies in order for Coastal Medical Center to be successful. Such assessments include an internal analysis, external analysis, gap analysis, and SWOT analysis. In conducting these analyses, our consulting team was able to better understand the internal environment, external environment, where the organization currently stands in terms of performance, and the major strengths, weaknesses, opportunities and threats that oppose the Coastal Medical Center. From our inquiry, we will be able to establish a strategic plan that best fits the organization’s needs.
Health care, and the relationship with the customer, is changing. The insurance provider and market is also changing in the wake of recent health care reforms. Reevaluation and assessment of a health systems strengths, weaknesses, opportunities and threats, as well as the relationship with the external and internal stakeholders is a productive and positive way promote a positive future for the health system organization. Goals and priorities must be held in a collaborative state with providers and sources of payers in order to stay valuable in today's market. Appropriate implementation planning and evaluation of this partnership can ensure the future success of not only the health system, insurance company, nursing staff, but also the patient. Strategic planning "is a process by which the guiding members of the organization envision their future and develop the necessary and appropriate procedures and operations to actualize that future” (Yoder-Wise, 2011, p. 312). This is an important concept in today’s unpredictable healthcare market.
Another reason strategic monitoring is important is because “there are more laws and regulations that apply to health care and biotechnology, with new ones being issued at an accelerating pace” (Moseley, 2009, p. 255). With the laws and regulations changing so often in health care it is important to monitor the changes so that organizations can implement them in their strategic plan as they occur. According to Al-Abri (2007), health care organizations can have a sustainable competitive advantage today if they maintain the ability to change, adapt, and evolve to the changes occurring in the health care industry. It is important for health care organizations to strategically monitor their strategic planning process because of the fast pace changes going on in the industry.
First, there is a group called Leadership 2020. The goal of this team is to vision what the possibilities are in the health care industry and through brainstorming, data analysis, and trending determine what AHC should look like and be like regarding culture, product, service, etc. in 2020. This is activity is very much a conventional way of strategic planning as the leaders look internally and externally, determine strategy for the next 3 -5 years that will help the organization accomplish its vision and mission (McNamara, n.d.). The other strategic planning model is Alignment. The alignment model of strategic planning seeks to align all business segments with the achievement of the organizational goals (McNamara, n.d.). When reviewing AHC’s strategic plan it was obvious that all business segment line leaders aligned on the overarching goal of “Strategies enclosed support that AHC is a Not-For-Profit, Full Service, Health System Owned, Non Acute Provider Dedicated to Integrated Population Health that produces a Total Return on Investment for its Member Health Systems. DEEPER WIDER BETTER” (Executive Leadership Team, 2016). The strategic plan lists out each business segment, each process improvement or innovation strategy, and the personal accountable as well as the time frame for which it will be
An organizational analysis is an important tool to become familiar with how medical businesses and organizations are able to meet standards of care, provide services for the community and provide employment to health care providers. There are many different aspects to evaluate in an organizational analysis. This paper will describe these many aspects and apply the categories to the University Medical Center (UMC) as the organization being analyzed.
Module two deals with external influences in healthcare administration and the conflicts that may cause lack of growth in the organization. External influences can range from society, stakeholders, staff, and patients. Health administrators should be in agreement with staff and physicians to maintain proper ethics and safety for everyone. Society has a big influence of healthcare organizations with spending their money towards health insurance, medication, treatment services and exams. As long the healthcare organization has a well reputation built on trust, then consumers will spend on that healthcare organization. The stakeholders that take part in external influences on ethics are the vendors, technology specialists, maintenance, insurance
WellStar Health Systems is currently the preeminent and largest health care provider in Metro Atlanta. WellStar Health Systems is a not-for-profit institution that is composed of 5 hospitals and an abundance of physician groups. Physician specialty groups included within WellStar are: ENT, Psychiatry, Endocrinology, Pulmonary Medicine, Infectious Disease, General Surgery, Rehabilitation, Pathology, and Rheumatology. WellStar’s organizational design is composed of internal and external factors that define the organization’s size, organizational structure, and processes. Internal and external factors are the basis for influencing managerial conclusions in decision-making. These factors vary from organization to organization and are the rationale for understanding WellStar’s strengths, weaknesses, opportunities, and threats. Understanding these variables is a necessity for the sake of WellStar’s survival
Competitive advantage matters greatly to those responsible for the management of healthcare institutions. Together with rapidly escalating healthcare costs, increasingly complex medical technologies, and growing regulatory and legal pressures, healthcare organizations face a critical need to improve the quality of care at reduced costs (Cu...
A strategic plan is a tool that delivers guidance in achieving a mission or goal with maximum proficiency and control for an organization. Strategic planning is used to transform and revitalize organizations. The plan helps provide an inclusive understanding of opportunities and challenges both internally and externally for the organization. The plan delivers an assessment of the strengths and limitations that are realistic within the company. A well-developed strategic plan will offer a comprehensive approach and empowerment for the stakeholders involved. It is an opportunity for learning and understanding priorities that will drive the business to succeed. Jones (2010), describes how in health care organizations, strategic plans characteristically concentrate on operational and organizational goals such as when to obtain new technology, how to meet competitive challenges, and what staffing, tools, or facilities are needed to ensure organizational survival. The mission and value statements are significant in determining the quality of a strategic initiative. Forcing the organization to look toward the future creates proactive objectives in which both short-term and long-terms plans and goals are necessary in order to succeed.
Organisation is the most important element in management. Any organization is located and operated in the environment. Every action of all organizations is possible only if it allows its realization. The internal environment is the source of its vitality. It involves the capacity needed for the functioning of the organization, but at the same time can be a source of problems and even her death of the organisation. The external environment is the source that supply organization resources. The organization is in constant exchange with the external environment consequently it provides itself with survival. The main objective of this work is to consider elements of the internal and external environment of the organization which are in a constant
Strategic planning has a focus on stabilizing the current environment, and it also support the organization's business plans and goals. Strategic planning helps to implement new projects, new technology, consolidation of data centers, data warehouses, exponential data growth, cost of ownership, and resources available in an organization to assess the future requirements. Strategic planning analyzes the business plan, potential blockage or other issues in the current architecture, processes and their implementation in new initiatives, and processes. Strategic planning helps to formulate the ideas about the key factors that are affecting the present and future development of the organization and the opportunities offered by the environment and the competence of the organization.