Business w/healthcare 8 slides powerpoint not including title and reference page
vwccspt12
chapter5_1.ppt
STRATEGIC MANAGEMENT OF
HEALTH CARE ORGANIZATIONS 7TH EDITION
*
Directional Strategies
Chapter 5
.
*
Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
*
Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
Recognize the important characteristics and components of organizational mission statements and be able to write a mission statement.
*
Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
Recognize the important characteristics and components of organizational mission statements and be able to write a mission statement.
Recognize the important characteristics and components of vision and be able to write an organizational vision statement.
*
Chapter 5 Learning Objectives
Understand the roles of and relationships among organizational mission, vision, values, and strategic goals and why they are called directional strategies.
Recognize the important characteristics and components of organizational mission statements and be able to write a mission statement.
Recognize the important characteristics and components of vision and be able to write an organizational vision statement.
Recognize the important characteristics and components and be able to write a values statement.
*
Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
*
Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
Identify service category critical success factors.
*
Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
Identify service category critical success factors.
Develop a set of strategic goals that contribute to the mission, move the organization toward the realization of its vision, and is consistent with the organization’s values.
*
Chapter 5 Learning Objectives
Recognize the important characteristics and components and be able to write strategic goals.
Identify service category critical success factors.
Develop a set of strategic goals that contribute to the mission, move the organization toward the realization of its vision, and is consistent with the organization’s values.
Recognize the important issues in the governance of health care organizations and the role of the board of directors in maintaining policy-making direction.
*
Develop a Strategy
Strategy
of the Organization
External
Environment
Internal
Environment
Directional
Strategies,
Leadership
Should
Do
Can
Do
Wants
To Do
*
The Strategic Planning Process
Strategic Planning
Situation Analysis
Strategy Formulation
Planning the Implementation
- External Analysis
- Internal Analysis
- Directional Strategies
- Directional Strategies
- Adaptive Strategies
- Market Entry Strategies
- Competitive Strategies
- Service Delivery Strategies
- Support Strategies
- Action Plans
*
Directional Strategies
Directional strategies give an organization its identity. It represents “who we are,” “where we are going,” and “how we work.”
- Mission a clear articulation of what the organization currently does
- Vision articulation of the organization’s collective hope for the future
- Values description of the behavioral norms, beliefs, and ideals that are important to the organization
The mission, vision, and values of an organization are central to the strategic planning process. All the strategies and goals must support these directional strategies.
*
Directional Strategies Outcomes
Reach consensus and document what the organization currently does
Reach consensus and document the collective hope for the future
Reach consensus and codify the fundamental values
*
Vision, Mission, and Values
Profile of tomorrow,
our hope for the future
Profile of today, our current products/services, customers, and philosophy
Profile of expected behaviors, our beliefs and ideals
Vision =
Mission =
Values =
*
What We Want to Do
Mission
An organizational mission is a broadly defined but relatively enduring statement of purpose that distinguishes our organization from others.
*
Characteristics of a Mission Statement
Clear and concise
Concerned with the organization today
Specific about products/services
Enduring
Underscores uniqueness
*
Strategic Thinking Map for Writing a Mission Statement
| Component | Key Words Reflecting Component |
| Target customers and clients |
*
Strategic Thinking Map for Writing a Mission Statement
| Component | Key Words Reflecting Component |
| Target customers and clients | |
| 2. Principal services delivered |
*
Strategic Thinking Map for Writing a Mission Statement
| Component | Key Words Reflecting Component |
| Target customers and clients | |
| 2. Principal services delivered | |
| 3. Geographical domain of the services delivered |
*
Strategic Thinking Map for Writing a Mission Statement
| Component | Key Words Reflecting Component |
| Target customers and clients | |
| 2. Principal services delivered | |
| 3. Geographical domain of the services delivered | |
| 4. Specific values |
*
Strategic Thinking Map for Writing a Mission Statement
| Component | Key Words Reflecting Component |
| Target customers and clients | |
| 2. Principal services delivered | |
| 3. Geographical domain of the services delivered | |
| 4. Specific values | |
| 5. Explicit philosophy |
*
Strategic Thinking Map for Writing a Mission Statement
| Component | Key Words Reflecting Component |
| Target customers and clients | |
| 2. Principal services delivered | |
| 3. Geographical domain of the services delivered | |
| 4. Specific values | |
| 5. Explicit philosophy | |
| 6. Other important aspects of distinctiveness/image |
*
What We Want to Do
Vision
Vision is an expression of hope – a description of what the organization will be like when it is successfully fulfilling its purpose.
*
Characteristics of Vision
Inspiring
Challenging
About excellence
Empower employees first and customers second
Comes alive in the details not in the broad generalities
Memorable and provides guidance
Not limited by the present
*
Strategic Thinking Map for Writing a
Vision Statement
| Component | Key Words Reflecting Component |
| Clear Hope for the future |
*
Strategic Thinking Map for Writing a
Vision Statement
| Component | Key Words Reflecting Component |
| Clear Hope for the future | |
| 2. Challenging and about excellence |
*
Strategic Thinking Map for Writing a
Vision Statement
| Component | Key Words Reflecting Component |
| Clear Hope for the future | |
| 2. Challenging and about excellence | |
| 3. Inspirational and emotional |
*
Strategic Thinking Map for Writing a
Vision Statement
| Component | Key Words Reflecting Component |
| Clear Hope for the future | |
| 2. Challenging and about excellence | |
| 3. Inspirational and emotional | |
| 4. Empower employees first |
*
Strategic Thinking Map for Writing a
Vision Statement
| Component | Key Words Reflecting Component |
| Clear Hope for the future | |
| 2. Challenging and about excellence | |
| 3. Inspirational and emotional | |
| 4. Empower employees first | |
| 5. Memorable and provides guidance |
*
What We Want to Do
Values
Values are the ideals organizations and people stand for – the fundamental principles that, along with the mission, make an organization unique.
*
Characteristics of Values
Reflect the organization’s culture
Consistent with the desired image
Acceptable to stakeholders
Consistent with vision
Ethical
Represent a clear commitment
*
Strategic Thinking Map for Writing a
Value Statement
| Component | Key Words Reflecting Component |
| 1. Desired behaviors |
*
Strategic Thinking Map for Writing a
Value Statement
| Component | Key Words Reflecting Component |
| 1. Desired behaviors | |
| 2. Organizational norms |
*
Strategic Thinking Map for Writing a
Value Statement
| Component | Key Words Reflecting Component |
| 1. Desired behaviors | |
| 2. Organizational norms | |
| 3. Shared beliefs |
*
Strategic Thinking Map for Writing a
Value Statement
| Component | Key Words Reflecting Component |
| 1. Desired behaviors | |
| 2. Organizational norms | |
| 3. Shared beliefs | |
| 4. Share assumptions |
*
Strategic Thinking Map for Writing a
Value Statement
| Component | Key Words Reflecting Component |
| 1. Desired behaviors | |
| 2. Organizational norms | |
| 3. Shared beliefs | |
| 4. Share assumptions | |
| 5. Explicit philosophy |
*
Strategic Thinking Map for Writing a
Value Statement
| Component | Key Words Reflecting Component |
| 1. Desired behaviors | |
| 2. Organizational norms | |
| 3. Shared beliefs | |
| 4. Share assumptions | |
| 5. Explicit philosophy | |
| 6. Fundamental principles |
*
Critical Success Factors
Critical success factors are those things that organizations must accomplish if it is to be successful.
Critical success factors are similar for all members of a strategic group.
Critical success factors vary from one service category to another.
Usually there are four or five things that must be achieved for success.
Strategic goals should address the critical success factors.
*
Setting Goals
Strategic Criteria for goals
Address an external issue, trend, or force
Concern a stakeholder
Help achieve a critical success factor
Draw on a strength or fix a weakness
Fit with the mission
Be consistent with the values
Move the organization toward the vision
Goals Statement Criteria
Controllable by the organization
Measureable as possible
Able to be achieved in a reasonable timeframe
Have a reasonable level of stretch for the organization
*
The Process of Momentum Creation
Setting goals
Organizations, like individuals, that have too many goals lose their focus
“One worthwhile task carried to a successful conclusion is better than half-a-hundred half-finished tasks” – B.C. Forbes (Founder, Forbes Magazine)
For most organizations, 4–6 goals are the “sweet spot”
Three types of goals: input, process, & output
*
Developing Action Plans
Action plans are developed for each goal
Goal #1: “Statement of Goal”
| Action Necessary to Achieve the Goal | Start Time/ End time | Unit/Individual Responsible for carrying out the Action | Strategic Planning Participant Responsible for Reporting at Next Strategy Section |
*
Governing Boards
An important group that should be involved in the development of the strategic direction of the health care organization
Board members should be regularly informed about
Strategic goals
Progress being made in their accomplishment
*
Governance Modes Applied to
Boards of Directors
Fiduciary responsibility mode or stewardship of assets
*
Governance Modes Applied to
Boards of Directors
Fiduciary responsibility mode or stewardship of assets
Strategic mode
Collaboration with management to develop a vision for the future
*
Governance Modes Applied to
Boards of Directors
Fiduciary responsibility mode or stewardship of assets
Strategic mode
Collaboration with management to develop a vision for the future
Generative mode
Engages in shared creative thinking to make sense of data available to decision makers
*
Governance Modes Applied to
Boards of Directors
Fiduciary responsibility mode or stewardship of assets
Strategic mode
Collaboration with management to develop a vision for the future
Generative mode
Engages in shared creative thinking to make sense of data available to decision makers
Progressive mode
Engages in debate, discussion and learning from each other
*
Five Behaviors Lead to Effective Boards
Engage in constructive conflicts (especially with the CEO)
Avoid destructive conflict
Work together as a team
Know the appropriate level of strategic involvement
Address decisions comprehensively
*
- Are we not doing some things now that we should be doing?
- Are we doing some things now that we should not be doing?
- Are we doing some things now we should do but do in a different way?
- Are our organization’s mission and vision unique in some way?
- Is our mission relatively enduring?
- Do our mission and vision allow for innovation?
- Do our mission and vision allow for expansion?
Managing Strategic Momentum:
Evaluating Directional Strategies
*
- Is our scope of operations clear (market, products/services, customers, geographic coverage)?
- Do our mission, vision, and values fit the needs of our stakeholders?
- Do our fundamental values make sense?
- Are our strategic goals moving us toward achievement of our mission?
- Are our strategic goals moving us toward achievement of our vision?
- Have we addressed the critical success factors?
- Is the image of the organization what it should be?
Managing Strategic Momentum:
Evaluating Directional Strategies
*
Chapter 5 Conclusions
After reading Chapter 5, you should be able to define the following terms:
| Key Terms | Key Terms |
| Corporate Governing Boards | Philanthropic Governing Boards |
| Critical Success Factor | Pioneering |
| First-Mover Advantage | Strategic Goals |
| Liability of Newness | Values |
| Mission | Vision |
| Mission Drift | Vision-Led Approach |
*
Assignment
ABC Long-Term Care (introduced in the previous assignment) is now ready to develop mission, vision, and values statements.
The management team has brainstormed the Mission and Vision components presented in the next two slides.
Develop mission and vision statements for ABC Long-Term Care.
Based on what you know about ABC, also draft a statement of values for ABC
*
Mission Statement Components
| Statement Components | Key Words of Our |
| Target customers/clients and markets | residents |
| Principles services/products offered | living choices, high quality services |
| Geographical domain of operations | |
| Commitment to specific values | caring professionals, to meet the physical, social, and spiritual needs |
| Explicit philosophy | enhance the quality of life |
| Other important components | timeless environment |
*
Vision Statement Components
| Vision Statement Components | Key Words of Our Vision |
| A clear hope for the future | leader in long-term care |
| Challenging and about excellence | safe, secure and caring |
| Inspirational and emotional | |
| Empowers employees first and clients/customers second | for patients, their families and our staff |
| Prepares for the future | quality leader |
| Memorable and provides guidance | quality |
*
