Week 6 Assignment 1 - Strategic Planning Implementation and Evaluation
Running head: STRATEGIC PLANNING AND DEVELOPMENT 1
STRATEGIC PLANNING AND DEVELOPMENT 1
Strategic Planning and Development
Mary Krenisky
HSA 599
Prof. Donna Levesque
July 26, 2021
Strategic Planning and Development
The healthcare industry has evolved dramatically. Increased technology, the evolution of professional medical responsibilities, and the advent of new diseases have all contributed to the shift (Ginter, Duncan, & Swayne, 2018). The Affordable Care Act, for example, is a fresh approach to healthcare policy in the United States (ACA). They make health care more accessible to Americans. Another issue that affects the American health system is the rising expense of healthcare costs (Ginter et al., 2018).
Increasing administrative costs and healthcare product supply expenses are to blame for the high cost of treatment. A strategic plan is required for health organizations to prepare for future developments. In addition, the strategic plan will assist healthcare institutions in successfully dealing with health issues and tracking progress.
The Differentiation in Management
Given the ever-changing healthcare market, strategic management is essential. Ginter, Duncan, and Swayne (2018) define strategic management as leadership that reacts to change, decides the direction, and focuses on the organization's momentum. The company's leaders need to be involved in developing a strategic management strategy. They must plan for the inevitable changes that will occur in healthcare organizations. Providing direction for employees and adopting policies that improve the organization's ability to adjust to change are two ways. In this paper, Ginter et al. (2018) discuss leadership in strategic organizational management.
Leadership defines the organization's vision and mission statement, enabling them to anticipate and respond to the future on a strategic level. Without solid supervision, implementing a successful strategic plan will be challenging. According to Ginter et al. (2018), strategic planning is a continuous process in which an organization develops numerous phases to accomplish its goal and vision. Leadership focuses on issues that assist health organizations in carrying out the mission and vision reports (Ginter et al., 2018).
Healthcare companies are better prepared for change when they have a strategic strategy in place. It includes the allocation of resources, decision-making and sets forth the procedures to define the strategy technique. In addition, management uses strategic planning to agree on how healthcare firms should address problems in the industry. Decision-making is primarily an intellectual endeavor (Ginter et al., 2018). It is a subset of strategic management that focuses on emergent developments, evaluates the impact of initiatives, and develops transformative solutions (Ginter et al., 2018). Strategic thinkers should be able to think strategically about existing factors. Healthcare providers are an excellent example of this.
Strategic thinkers have to understand the impact of all the different factors that affect the overall healthcare system in the United States during the strategic thinking process. Expectations are also crucial in strategic thinking. Those who understand strategy see the present and the future to create concepts that can be used today and, in the future, (Ginter et al., 2018). Strategic momentum also focuses on maintaining the strategy geared toward accomplishing the institution's objectives, according to Ginter et al. (2018). As a result, strategic management guarantees that all parties work together to achieve the organization's overarching aim (Demir, 2018). In other words, strategic momentum leadership depends on subtasks to meet the overriding values of the company (Demir, 2018).
It, therefore, deals with the actual achievement of a strategy plan (Ginter et al., 2018). For example, if a healthcare company wants to lower treatment costs, controlling strategic momentum can produce new pharmaceuticals or investigate low-cost treatment options. Because it binds employees and organizations towards a shared purpose, it is also effective in the decision-making process to create an organizational structure (Ginter et al., 2018). Strategic momentum management also helps to evaluate strategic performance (Ginter et al., 2018). It can determine whether a given plan will reach specific goals through momentum management.
Finally, strategic management emphasizes the importance of change-responsive leadership. Change should thus be dealt with strategically, as healthcare leaders are called on to adjust to the company's needs in response to it (Ginter et al., 2018). Strategic planning entails the creation of procedures that allow healthcare organizations to respond to changing circumstances. Strategic thinking entails concentrating on current healthcare concerns and how to address them. It incorporates an in-depth investigation, attention to detail, and recognition of patterns. Everyday strategic routines are more about achieving long-term strategic plans (Ginter et al., 2018). The strategic strategy has been established to ensure that specific company goals are achieved.
Proposing an Analytical Tool
The company plans to create a strategic plan that is consistent with its vision and mission statement. Many strategic analytical techniques are available. They include, among other things, Porter's five forces, the SWOT analysis, and the PESTEL analysis (Berisha Qehaja, Kutllovci, & Shiroka Pula, 2017). Competition is affected by five fundamental forces in the market: the strength of the competition, the intensity of competition, the maturity of the competition, the general structural factor, and the industry-specific structural element (Berisha Qehaja et al., 2017). A few of these elements include new competitors, substitutable products, the buying power of customers, and supplier power. The SWOT analysis tool assesses market forces, vulnerabilities, opportunities, and risks. However, the PESTEL model considers several political, economic, social, technical, environmental, and legal issues.
They are using PESTEL analysis in a healthcare organization's strategic approach. Many factors influence healthcare organizations, including politics and the economy (Berisha Qehaja et al., 2017). Changes in rules that are motivated by political considerations, for example, may result in a loss of agility and responsiveness in the market, which has to be factored into the plans for delivering healthcare.
Additionally, the plans should demonstrate how changes in the economy, such as increases in unemployment and the cost of materials, affect the organization's vision and mission statements (Berisha Qehaja et al., 2017). When it comes to healthcare organizations, social aspects have the most significant impact. Social variables influence healthcare in all aspects of an organization's operations; thus, healthcare providers should assess these elements in all phases of strategy and management.
Furthermore, health is greatly affected by technical issues, and the organization must put more effort into changing technology (Berisha Qehaja et al., 2017). Additionally, the legal and environmental elements of healthcare also play a significant role. Therefore, PESTEL analysis should be used as it effectively approximates the majority of the components inside it, which impact healthcare.
The Proposed Manner of Analytical Tools with Examples
The PESTEL (Political, Economic, Social, Technological, Environmental) analysis can uncover the political influences on healthcare. Political issues include the transition to a new administration as well as the implementation of new healthcare regulations. With such rapid change in the healthcare system, the U.S. has witnessed various shifts in policy, including Medicaid and Medicare to the ACA (Ginter et al., 2018). To this end, the healthcare organization should put up a strategic plan that considers current shifts in American politics. Certain groups of people, such as private employers and health insurance corporations, oppose the Affordable Care Act because it increases the expense of healthcare (Ginter et al., 2018). Therefore, as part of strategic planning, the organization should determine a stance that allows it to respond to any change on the ACA, whether made by a single administration or multiple administrations.
Also, economic variables impact whether or not a healthcare institution attains its goal and objective. Housing, transportation, educational attainment, and employment are all financial issues that affect healthcare. To stay in the black, the healthcare organization must modify its plans to meet the economic landscape of the United States (Ginter et al., 2018). Strategic planning should consider external economic issues, such as increased housing costs and the effects of those economic factors on patient health.
Studies show that social variables have an impact on healthcare results, too. Social elements influence the attainment of health goals. Hence healthcare organizations must assess their strategic plans (Ginter et al., 2018). Other societal issues include racial disparities, economic inequity, and educational levels. To guide strategic decisions, the mission and vision statements of the company must act as a roadmap.
In the field of healthcare, technological advancements have been enormous. Numerous technical improvements have occurred in the health sector, including Telemedicine and the usage of Electronic Health Records (Ginter et al., 2018). The healthcare organization's strategic plan should address emerging technologies. Artificial intelligence has made significant strides in terms of application, and it is projected to have a substantial impact on the healthcare system. As a result, the strategic plan should include a description of how the company intends to respond to the implications of artificial intelligence in the healthcare environment (Ginter et al., 2018).
Several other contributing factors influence healthcare delivery. Climate change, air pollution, the appearance of new diseases, and changing lifestyles are all environmental elements that might impact one's health (Berisha Qehaja et al., 2017). The strategic plan should include the methods of reacting to new healthcare concerns, such as smoking and alcohol consumption among pregnant women, in the future. The project should consist of strategies for treating new diseases induced by environmental changes, such as cancer, and those caused by unhealthy habits, such as obesity. Finally, the strategic plan should take legal considerations into account (Berisha Qehaja et al., 2017). Strategic plans should include strategies to meet new laws and regulations, which can have various consequences on healthcare.
Overall, healthcare companies should implement a PESTEL-based strategic plan. Using a PESTEL analysis, healthcare companies are better able to cope with the increased complexity in today's world (Ginter et al., 2018). PESTEL tools allow healthcare companies to respond to new needs while helping them achieve their strategic goals.
Internal and External Barriers to Strategic Planning
Corporate culture might hinder the implementation of the strategic plan. Corporate culture pertains to the governance of operations, the core principles that govern them, and the core beliefs held by those in the firm (Ginter et al., 2018). Incorporate culture; planning will likely be challenging to implement. The second obstacle from within is inadequate leadership. In leading strategic management, the leader is typically at the forefront. Nevertheless, it is possible that even if leaders are unwilling to participate in the PESTEL study, the money and effort necessary could be a barrier.
Additionally, the leadership may not be strategic. Most notably, one's finances might also serve as an internal obstacle. The most effective way to develop a comprehensive strategic plan is to secure adequate funding to undertake extensive research and development efforts (Demir, 2018). External impediments to the strategic plan's effectiveness include unhealthy rivalry, a lack of stakeholder participation, and regulatory changes. Healthcare companies may be tempted to inappropriate competitive conduct that achieves overall detrimental targets (Demir, 2018).
Patients may be reluctant to submit demographic data. However, likely, the government may not be able to provide relevant statistics in healthcare administration. New government laws could hinder the accomplishment of the strategy plan (Demir, 2018). The government may establish legislation that restricts how healthcare companies operate.
Recommendations to Solving Barriers
Unsupportive business culture is one of the impediments to strategic planning. One of the recommendations for resolving the difficulty is to foster an inclusive culture in which all employees may participate in decision-making. Regarding ineffective leadership, the healthcare organization can overcome this obstacle by establishing transparent and responsible leadership (Ginter et al., 2018). Leaders of healthcare organizations should be held accountable. Financially speaking, healthcare organizations should invest in successful long-term ventures that will enable them to raise capital for strategic planning activities.
Organizations do not influence external forces. They can, however, make a positive contribution to the solutions. To combat unhealthy competition, the healthcare organization should strengthen its market presence (Ginter et al., 2018). Greater market penetration of healthcare services will benefit the company in overcoming competition. Organizational communication is critical for garnering cooperation from many stakeholders; hence, the healthcare organization should address diverse stakeholders to highlight the relevance of their collaboration to improve the healthcare results (Ginter et al., 2018). Concerning legal hurdles, the healthcare institution should educate personnel about all applicable legal laws to ensure compliance.
Market Segment Target
Women who are pregnant will be involved in the overall strategic plan. The population faces numerous obstacles due to their pregnant status (Ginter et al., 2018). While expecting, ladies are advised to attend the health clinic or hospital frequently. Stress, stroke, and heart disease are all health dangers for pregnant women. As a result, the healthcare organization's strategic plan will aid women in adapting to changing lifestyles through strategic planning.
Additionally, all efforts should be made to stop mother-to-child transmission of infections, such as AIDS. In addition, the safety of the unborn child should be assessed continually (Berisha Qehaja et al., 2017). Immigrants are another group on which the organization might concentrate its efforts. Based on the PESTEL model, immigrants who are negatively affected by political policies in the United States are at risk of economic marginalization.
Since the healthcare organization can better focus on their strategic health management, they may focus on the immigrants' health difficulties because of these numerous political, social, and legal complications (Berisha Qehaja et al., 2017). It is also possible to employ the PESTEL Analysis to target persons who are enduring long-term diseases. Because of the high expense of treatment, people face various economic and social difficulties (Berisha Qehaja et al., 2017).
Marketing Recommendation and Examples
Advertisements are one method of marketing the strategy plan (Ginter et al.,2018). The healthcare organization's goals for pregnant women are to help them avoid disease risk factors, prevent the transmission of diseases from mothers to their unborn children, and ensure a healthy pregnancy for the baby. Thus, the strategic plan will place a premium on improving healthcare outcomes for pregnant women, their unborn children, and people living with chronic conditions (Demir, 2018). Strategic management aims to provide adequate responses to the needs of the customers and other stakeholders. For example, the Healthcare Organization will broadcast advertising to raise awareness of the Organization's strategic plan for the health of pregnant women through TV, social media, publications, and posters.
Conclusion
Last but not least, strategic planning is essential in ensuring that businesses can respond to developments in both the present and the future. This paper examines the different techniques and methods used in strategic planning; the topic of strategic planning, strategy management, and momentum has all been explored. Furthermore, the study recognizes the PESTEL analysis is a tool for strategic planning in a healthcare company (Berisha Qehaja et al., 2017). There is also a discussion of internal and external hurdles that can prevent a strategic plan from being successful, such as bad leadership, budgetary limits, and competition. A marketing approach centered on public relations and advertising will be established in the strategic plan, focusing on pregnant women.
References
Berisha Qehaja, A., Kutllovci, E., & Shiroka Pula, J. (2017). Strategic management tools and techniques usage: A qualitative review. Acta Universitatis Agriculturae Et Silviculturae Mendelianae Brunensis, 65(2), 585-600. https://doi.org/10.11118/actaun201765020585
Demir, F. (2018). A strategic management maturity model for innovation. Technology Innovation Management Review, 8(11), 13-21. https://doi.org/10.22215/timreview/1196
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Strategic management of health care organizations. Hoboken, NJ: Wiley.