STRATEGIC MANAGEMENT OF HEALTH CARE ORGANIZATIONS 7TH EDITION

Directional Strategies Chapter 5 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.

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 Directional External Environment Internal Directional Strategies, Leadership Should Do Can Wants To Do

The Strategic Planning Process 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 Goals Statement Criteria 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

Managing Strategic Momentum: Evaluating Directional Strategies 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?

Chapter 5 Conclusions After reading Chapter 5, you should be able to define the following 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 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 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