Assignment 01: Introduction to Business Strategy

crtshhill58

Chapter2.pptx

Home >Nursing homework help >Assignment 01: Introduction to Business Strategy

Strategic Analysis for Healthcare

Chapter 2

Health Administration Press

Team Techniques

The development of business strategy is rarely done alone; instead, it most often involves a strategy development team.

This team is typically a cross-functional group that draws its members from such diverse areas of the organization as human resources, finance, manufacturing, and sales.

Thus, we begin our study of the strategic planning process with a review of team techniques such as brainstorming, future-perfect thinking, and affinity charts.

Health Administration Press

Brainstorming

Brainstorming is a process for generating ideas in a group.

The underlying concept is similar to the old adage that “two heads are better than one.”

If everyone involved (stakeholders) in a project, issue, or problem can come together and generate possible solutions, the variety of ideas will be greater, and the opportunity for a superior outcome is increased.

Further, stakeholders are more likely to accept an outcome if they themselves had a hand in creating it. Brainstorming is particularly useful when creative, outside-the-box, or nonapparent solutions are needed.

Health Administration Press

Brainstorming

Often, corporate or national cultures create barriers that prevent people from sharing their ideas openly and freely.

For example, in an autocratic culture where people only do what they are told, employees are less likely to speak up to voice opinions or make suggestions.

In a highly critical culture, or in a culture that does not tolerate failure, people may be afraid to suggest a different way of doing things for fear of criticism.

Brainstorming overcomes these barriers by creating an environment where it is not only safe, but also expected, for people to contribute their ideas.

Health Administration Press

Brainstorming

The four main principles of brainstorming are

to focus on quantity,

to not allow criticism,

to welcome off-the-wall ideas, and

to encourage the group to improve ideas by building off the ideas of others.

Health Administration Press

Brainstorming

To create a safe environment for idea generation, the brainstorming group usually begins by setting its own ground rules. The ground rules set the parameters and establish what the group finds to be acceptable and unacceptable. Typical ground rules may include the following:

No ideas are bad ideas; give any and all ideas you think of.

Speak one person at a time; don’t speak over others.

Criticism of other people’s ideas is not permitted.

Everyone participates.

Ideas will be evaluated only at the end, not as ideas are generated.

Think outside the box.

Health Administration Press

Brainstorming

The purpose of brainstorming is to generate as many ideas as possible. Quality is not important; quantity is.

The ground rules are usually developed with the aim of ensuring that maximum ideas are generated.

For example, if a group member suggests an idea and the other group members immediately dissect it, evaluate it, and tear it apart, the person who put forward the idea may feel criticized and avoid offering similar ideas in the future.

Furthermore, the group’s time has now been refocused on determining how “meritorious” an idea was instead of on creating more ideas. The idea generation process has thus been inhibited.

Health Administration Press

Brainstorming

Brainstorming can be formal or informal.

One person is designated the “scribe,” “facilitator,” or “leader.”

This person has the role of writing down every idea generated.

Usually the ideas are written on a flip chart. Alternatively, “sticky notes” or even a chalkboard can be used.

Often, the scribe role rotates so that no one person dominates the process.

Many groups will establish the principle that the scribe does not offer ideas but only writes. This rule is intended to prevent the scribe from exerting leadership that could direct or redirect the group’s efforts toward a particular path.

Brainstorming begins with group members offering quick, brief ideas. Deep descriptions are not necessary. A brainstorm idea might sound like “What if we did X?”

As an example, imagine an executive team that is trying to cut costs for the organization. The first idea offered might be, “We could cut our workforce by 10 percent.” Instead of judging the idea, the scribe jots it down and moves on to the next idea.

Health Administration Press

Brainstorming

Brainstorming is expected to generate a significant number of ideas.

The sheer volume of ideas suggests that not all ideas will be viable. In later chapters, we will discuss analytical and quantitative methods of evaluating alternate strategies.

For now, we can look at some simple approaches for retaining and discarding brainstormed ideas.

Following the idea generation session, the team members will work to reduce the number of ideas to a manageable group.

Initially, the group will likely agree that certain ideas are clearly not viable, even without discussing the value of the ideas. These can be immediately discarded.

Some ideas will have mixed support. These ideas will likely lead to a debate over their merits.

Finally, some ideas may have immediate unanimous appeal.

Health Administration Press

Future-Perfect Thinking

Lindaman and Lippitt (1979) found that when people planned backwards from the future to the present, they developed more robust, exciting, and committed plans.

Future-perfect thinking is a planning tool in which group members pick a particular date at some point in the future, imagine they are actually there, imagine the perfect scenario, and then work backward from that point in order to determine how they “actually” got there.

For example, imagine you are five years in the future and your organization has 70 percent market share, up from 37 percent. How did the organization do it? What was done to get there?

Health Administration Press

Future-Perfect Thinking

In essence, future-perfect thinking involves projecting oneself into a perfect future situation and then imagining how it occurred.

The theory behind future-perfect thinking is that when you project yourself into the future, all the things that occurred between now and that future are part of the “past.”

Psychological studies have shown that people tend to be able to describe the events of the past more fully and accurately than they can describe future possibilities.

Health Administration Press

Affinity Charts

An affinity chart is a method of organizing the data generated in brainstorming.

An affinity chart takes the aggregate data generated and looks for similarities in the ideas.

Ideas are grouped by similarity.

A header is developed for each common group, and the ideas of that group are listed under the heading.

Health Administration Press

Affinity Charts: Step 1: Generate Ideas to Cut Costs by 10%

Health Administration Press

Affinity Charts: Step 2: Group by Common Concept

Health Administration Press

Affinity Charts: Step 3: Develop Headings

PURE COST CUTTING

PROCESS CHANGES

EMPLOYEE ACTIONS

OPERATIONS ACTIONS

CUSTOMER AND SUPPLIER ACTIONS

OTHER ACTIONS

Health Administration Press

Affinity Charts: Step 4: Formalize

PURE COST CUTTING

PROCESS CHANGES

EMPLOYEE ACTIONS

OPERATIONS ACTIONS

CUSTOMER AND SUPPLIER ACTIONS

OTHER ACTIONS

Health Administration Press

Exercise

Form groups of 5–8 students.

Brainstorm ideas on how could the university be more “profitable.”

After brainstorming, sort ideas into categories.

Put a heading on each category.

Report out to class the categories and ideas.

Health Administration Press