OUTLINE No.

3 NCM 107-A SY 2018-2019

STRATEGIC PLANNING

PLANNING:
Def:
 Is deciding in advance what to do, how to do a particular task, when to do it, and
who is to do it.
 Is predetermining a course of action in order to arrive at a desired results.
 It is the continuous process of assessing, establishing goals and objectives and
implementing and evaluating them, which is subject to change as new facts are
known

o Managers must identify short- and long-term goals and changes needed to ensure that
the unit will continue to meet its goal
o Identifying such short- and long-term goals requires leadership skills such as vision
and creativity, since it is impossible to plan what cannot be dreamed or envisioned.

FACTORS EMERGING IN THE RAPIDLY CHANGING HEALTH-CARE:

1. The tension between “value” and “volume” has reached a tipping point.
2. transformation from revenue management to cost management
3. Physician integration
4. Industry moving away from illness care to wellness care
5. Use of complementary and alternative medicine
6. interdependence of professionals and interprofessional collaboration
7. Shift in framework to the patient as a consumer of cost and quality information.
8. Technology
9. Health-care team will be characterized by highly educated, multidisciplinary experts.
10. Robotics
11. Biomechatronics
12. Biometrics
13. Smart cards
14. Declining reimbursement, the current nursing shortage, and an increasing shift in
care
15. Internet
16. Aging workforce
17. Growing elderly population

PRINCIPLES OF PLANNING:
1. Always based and focused on the VMG & philosophy of the organization. It is a
continuous process.
2. Should spread within the entire organization covering the various departments,
services and the various levels of management to provide maximal cooperation and
harmony.

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OUTLINE No. 3 NCM 107-A SY 2018-2019

3. Utilizes all available resources.

4. Must be precise in its scope and nature.
5. Should be time bounded.
6. Must be documented for proper dissemination to all concerned

STRATEGIC PLANNING:
Organizational Level
o Long range plan (3-10 years)
o 1 or twice a year – if changes are rapid
Unit level
 6-month plan
 Already considered a long range plan

 Forecasts the future success of an organization

 Align its capabilities with external opportunities (nursing shortage, linkages..)
 Typically examines an organization’s purpose, mission, philosophy, and goals in the
context of its external environment
 look closely at competencies and weaknesses examine their readiness for change

Operational Assessment
Gather data related to:
1. Financial performance
2. Human resource
3. Strategies
4. Services

 Operational Assessment Concludes by evaluating how well organization is achieving

its goals and objectives

Strategic planning tools :

 SWOT ANALYSIS
 BALANCED SCORECARD

SWOT ANALYSIS:
 Strengths, weaknesses, opportunities, threats
 AKA TOWS
 developed by Albert Humphrey at Stanford University in the 1960s and 1970s.

STRENGTHS
 those internal attributes that help an organization to achieve its objectives
WEAKNESSES
 those internal attributes that challenge an organization in achieving its objectives
OPPORTUNITIES
 are external conditions that promote achievement of organizational objectives
THREATS

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 OUTLINE No. 3 NCM 107-A SY 2018-2019

 external conditions that challenge or threaten the achievement of organizational

objectives

OBJECTIVES STRENGTH WEAKNESSES

• Attract at least 30 enrollees for MAN- 1. It has a wide choice of credentialed 1. The consortium arrangement requires
MBA program and practitioners-faculty members at least 10 students per batch
2. has a relevant and tested curriculum 2. Expensive tuition fee for the DDC
cohort

OPPORTUNITIES SxO Strategies WxO Strategies

1. Growth of non-traditional courses such
as part-time MBA Program, Short
Management Courses
• Employ appropriate teaching methods
such as e-based learning and industry
exposures. Provide an outstanding
faculty and the necessary support
resources. (S1,O1)
• Develop and implement succession plans
at DDC and DDH. Once succession plan
is established, provide 50% off on the
tuition fee for highly promotable
employees (W2, O1)

THREATS SxT Strategies WxT Strategies

1. Students are job-oriented rather than • Employ effective marketing/campaign for • Develop hospital base learning
knowledge-driven enrollment (S1, S2, T1) application as teaching strategy (W1,
T1)

BALANCED SCORECARD:
 developed by Robert Kaplan and David Norton in the early 1990s
o develop metrics (performance measurement indicators)
 allow organizations to align their strategic activities with the strategic plan
 a framework for achieving that strategic plan
 collect and analyze data from four organizational perspectives:
1. Financial,
2. Customers,
3. Internal business processes (or simply processes), and
4. Learning and growth
BENEFITS:
1. Getting the full picture of your organization’s health
2. Acquiring feedback to continuously improve your processes
3. Tracking the right metrics over time
4. Enabling you to cascade your strategy down through your entire company

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OUTLINE No. 3 NCM 107-A SY 2018-2019

RULES of STRATEGIC PLANNING:

1. Be realistic about the strengths and weaknesses of your organization.

2. Be clear about how the present organization differs from what might be possible in
the future.
3. Be specific about what you want to accomplish.
4. Always apply SWOT in relation to your competitors.
5. Keep SWOT short and simple.
6. Remember that SWOT is subjective.

KEY COMPONENTS of STRATEGIC PLANNING:

1. VMG
2. CORE VALUES
3. SWOT ANALYSIS - STRATEGIES
4. or (SCORE CARD)
5. ACTION PLANS

1. VISSION, MISSION, GOAS

 keep it shorter so everybody can understand immediately the main objective

Vision
 The CEO and senior management likely has a focused vision for the current and
future of their organizations. It Is imperative that C-level executives include their
shared vision into a successful business strategy.
Mission
 A company's mission should be much more than a politically correct "feel good"
statement. The mission statement should embody the values of the organization, to

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OUTLINE No. 3 NCM 107-A SY 2018-2019

which it will always remain true. A good mission statement should include a clear,
concise expression of the company's purpose, philosophy and commitment.

Objectives
 Along with the company's short- and long-term goals, the objectives should state the
specific objectives your business strategy will accomplish as well as a timeline
outlining when management believes the company will reach them. In all cases, the
company's objectives should focus on achieving the broader goals as displayed in
your mission statement.

2. CORE VALUES
 Statements should be passionate and distinct because these will be the guiding
principles to achieve the goal.

3. SWOT ANALYSIS
 Summary of progress and highlights the steps to focus on.

SCORE CARD
 a graphic representation of your progress
 a record of your performance for comparison to indicate any strength and
weaknesses

Strategies
 This is the "how" that will achieve the goals and objectives. While strategic planning
groups often express different ideas of how to reach the outcomes the strategies
target, brainstorming and free discussion typically results in agreement on a business
strategy or strategies that should work.
 Even in smaller organizations, CEOs should try to involve as many people as possible.
This is more important than just keeping everyone on the same page. One often
learn that staff members have winning ideas that need to be considered. Perhaps
more important, though, is that inclusion creates buy-in, and any winning strategy
will need engaged employees to be successful.

4. ACTION PLANS
 Indicate the different strategies, including acquisition of resources and your
timetable.
 Clearly, great vision and mission statements are useless if not acted upon. Action
plans are the engines that make strategic plans succeed. Creating detailed action
plans that include what is to be done, who is accountable for it, and when it is due, is
an ingredient commonly glossed over in strategic planning. Too many organizations
create outstanding strategies without attaching specific action plans, and so they
gather dust until the next strategic planning meeting.

DOMINGO SO JR., RN, MAN 5