What value does strategic planning have for health care organizations?
What role does financial management play in strategic planning?
Respond to at least two (2) of your classmatesÃ¢â‚¬â„¢ or your instructorÃ¢â‚¬â„¢s posts. Your responses should include elements such as follow-up questions, a further exploration of topics from the initial post, or requests for further clarification or explanation on some points made.
ALL citations and references needs to be APA 7th edition format. THANK YOU!
Strategic planning forces managers to anticipate where they want the health care organization to be in three to ten years (Nowicki, 2015). Because hospitals and healthcare organizations operate on many different levels, from patient care to finances, it is important that the organizations plan in more ways than one. Strategic planning in healthcare improves communication throughout the entire organization. An organizationÃ¢â‚¬â„¢s strategic plan should address the key issues, the organizationÃ¢â‚¬â„¢s vision and goals, and lay out the plans to get there (Strata Decision Technology, 2020). Ã‚Â If the strategic plan is clearly developed, executed, and communicated can help a health care organization carry out the vision and lead to a more fulfilling future (Strata Decision Technology, 2020). Teamwork is essential for every healthcare industry to improve the quality of service, and an effective strategic plan can bring employees together to deliver quality care, greater customer service, and increased performance (Strata Decision Technology, 2020). The value of strategic planning lies in its systematic approach in dealing with an uncertain future (Nowicki, 2015).
During strategic planning, financial management is essential. During the planning process when the internal environment is assessed, the organization must look at financial ratios, including liquidity, profitability, activity, capital structure, and operating ratios (Nowicki, 2015). The last step in the planning process is developing a strategic financial plan, which links the strategic plan to the operating plan. The strategic financial plan is the quantification of a series of strategic planning policy decisions that will answer whether the organization can make progress toward accomplishing is strategic plan over the next ten years (Nowicki, 2015).
Strategic planning for healthcare organizations is about the consumer. TodayÃ¢â‚¬â„¢s hospitals and health systems need to adapt to a world in which more than three-quarters of the population carries a smartphone, consumers have access to more than 165,000 health-related apps, and more than 72 percent of U.S. internet users look for health information online (Grube & Crnkovich, 2017). Ã‚Â To benefit consumer healthcare, organizations should provide high-quality care, a positive consumer experience, and a broad service mix. Patients may focus more on access, quality, and the presence of a strong mix of businesses, services, and products. Even though would be challenging for organizations to meet all consumer’s demands. It would be worth it to draw in the consumer.
Healthcare leaders should choose where their organizations can excel and where the organizations cannot reasonably expect to compete directly with higher-performing organizations. Eventually, a healthcare organizationÃ¢â‚¬â„¢s leaders should examine how their value proposition is articulated, asking two basic questions: Ã¢â‚¬Å“Is our positioning sustainable? If not, what needs to change (Grube & Crnkovich, 2017)? It is up to management to do a compressive assessment that covers the most common areas of the market, financial, and operational analytics. It is the responsibility of health care leaders to be prepared to make needed investments, in terms of both people and resources. Leaders should focus on finding new approaches to meeting consumer needs and expectations.