Case for Alignment

Should every one have a strategy? Vision Goals Constraints Time Money Competing forces You are not alone

Management systems Objectives Likely actions Strategy Desired actions Control system Situation Tasks People ACTIONGAPACTIONGAP understand what is desiredunderstand what is likely Evaluate and compare K. Merchant, Modern management control systems

Public Health Management System Objectives every actions Mission Desired actions Control Systems Financial Risk averse Situation Crisis Mx Policies Too vague People Too many ACTIONGAPACTIONGAP know what is desiredtold what is likely political impact decision Modified K. Merchant, Modern management control systems

Effectiveness vs Strategy LOWHIGH LOW

Context and perspectives Want to be a millionaire Busiest Emergency Department in KSA National center for transplant Best cardiac center in ME Best academic center Affordable tertiary studies Affordable laser surgery day care center Leadership Institute Want to have a shisha on the beach every weekend

Strategy aligned practice is beyond a SWOT analysis? StrengthsWeaknesses Opportunities Threats

Strategic power house CountryMedian agePopulationBirth rateDeath rate yearsgrowth rate %per 1000 UAE % Qatar % Bahrain % Oman % KSA % Kuwait % Australia**360.93%

Strategy principles Essential components of Strategy Strategic Positioning = Good fit Strategic Design = Resource alignment Strategic Model = Matching strategy to environment Strategic Rules = Efficiency and flexibility Strategic Map = Strategic bet Strategic Leadership = Strategic sustainability

Principles of Strategic positioning Create unique and valuable position Involving different sets of activities Focus on needs of too many customers – Health insurance, public service, primary health care, emergency services Comprehensive needs of select group, Specialist healthcare, research and education, transplants Look who is doing the same thing Choose what NOT to do Choose activities that is compatible Hospital management and hotel services within health Create a good fit amongst all your activities Trauma services Day surgery hospital – high volume low occupancy Cardiac services

Strategic design Matching business to environment Porter’s five forces model Alignment with resources and capabilities Variety based: choose product rather than customers, laser eye clinics Need based: choose particular group (Women's, children) and serve ALL their needs Access based target people who are accessible in a town / large city / medical tourist

Area / Arena Staging Differentiation Vehicle Economic Logic Geographic position Area of Specialisation Local vs national vs regional Service level primary / tertiary Etc etc How can you achieve your objectives Partnership Technology Contracts affiliations Informed sequence and speed Manage start-ups Expand established services Establish new services Entering new markets following local reputation High International standards. Cost effective. Highly specialised service The best doctors The best treatment The shortest waitlist The transplant hospital Zero tax KSA Government guarantees? Durable sustainable Acceptable to customers Acceptable to funding bodies

Strategy rules In good times increase efficiency In bad times increase flexibility Rules must match strategy and environment Rules tailored to a single process, not vague and make sense Explicit and evolve with business development

Simple rules The how to rule A process rule, all patients to be seen within 30 min Boundary rule Deal with referred patients from private only Have x no beds for overseas or insured patients Priority rule Ranking opportunities in a timely manner Timing rule Review contracts, review special equipment, performance review Exit rule When to call it a day, service, sector, partnership Eisenhardt and Sull

Strategy Maps Best “Strategic bet” Hanson and Smith model Educated guess to predict future events informed by knowledge, experience and learning Financial perspective Balance revenue growth vs productivity improvement Customer perspective Relationship, image distinct to you Internal perspective Balancing operational and innovative processes Learning and growth Define skills, technology and culture that supports strategy Hanson and Smith model

Strategic leadership Transform and renew vision Provide short term achievements Enhance flexibility Develop human capital Maximize employee skills Create loyalty Promote stability Maintain competitive advantage

Reflections

Demographics of GCCC