Strategic management of health care organizations

Overview

Create a 3–5-page directional strategy report, as if you were preparing to present your assessment to a representative panel of employee stakeholders of a health care organization.

Note: The assessments in this course are presented in sequence and must be completed in order.

Directional strategies allow organizational leaders to define what the organization should be doing and how the organization plans to achieve results. As industry dynamics shift, strategies need to be adjusted. Directional strategies are all about sustainability. For example a directional strategy of growth needs to be carefully evaluated with respect to internal capacity, external community fit, and financial feasibility.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 1: Analyze organizational structure, design, culture, and climate in relation to environmental forces. ◦Analyze an organization’s mission, vision, and values statements in terms of directional strategies.

◦Analyze the gap between the desired outcome and the actual state of the current environment.

• Competency 3: Recommend an organizational structure and design to optimize a strategic plan. ◦Examine organizational ethics as expressed in mission, vision, and value statements, and its relationship to health care strategy.

◦Propose changes to vision, mission, and values statements that align organizational structure and strategies.

• Competency 4: Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care administration. ◦Write in a clear, concise, and well-organized manner, supporting conclusions with relevant evidence.

◦Follow current APA guidelines for format and style.

Context

The primary directional strategies discussed in strategic management literature are mission, vision, and values. It is important to note that strategic goals also provide direction to the organization and are an important part of the strategic planning process.

The process of creating authentic and congruent vision and mission statements hinges on filtering the creation process through an organization so that ownership of the strategic plan is shared by everyone. All employees should have a say in their specific goals within the structure of an organizational strategy.

Read the Assessment 3 Context document for additional information about the following topics:

• Strategy Formulation Process.
• Directional Strategies.
• Creating Momentum.

Questions to Consider

To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

• In a health care organization or your choosing, what are the major categories of employee stakeholders (such as, executives, senior management, middle management, caregivers, maintenance, administrative support personnel, volunteers, et cetera)?
• What role does the board of directors play in your health care organization?
• What are the important elements of an effective board of directors?
• What is the process your organization uses to select members? ◦How effective is that process?
• What are industry best practices for selecting board members for a health care organization?
• How well does your organization’s strategies align with its published vision, mission, and values?
• How does this organization’s environment support or hinder its alignment with its vision, mission, and values?

Suggested Resources

The following optional resources are provided to support you in completing the assessment or to provide a helpful context.

Library Resources

• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic management of health care organizations (7th ed.). San Francisco, CA: Jossey-Bass. ◦Chapter 5: Directional Strategies.
• Kotalik, J., et al. (2014). Framework for ethical decision-making based on mission, vision and values of the institution. HEC Forum, 26(2), 125–133.
• Kronenburg, M. A. (2014). Evaluating important healthcare management competency areas and preparation for healthcare reforms. International Journal of Business and Public Administration, 11(1), 31–40.
• McSherry, R., &Warr, J. (2010). Implementing excellence in your health care organization: Managing, leading and collaborating. Berkshire, GBR: Open University Press.
• Newhouse, J. J., &Balotsky, E. R. (2013). Factors motivating hospital CEOs to commit to ethical integration in their institutions: A quantitative analysis. Journal of Leadership, Accountability and Ethics, 10(2), 46–54.
• Scott, B. C. (2015). Hospital boards—Why quality and safety matter. Physician Leadership Journal, 2(1), 62–64.

Internet Resources

Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.

• Kukreja, D. (2013). Strategic planning: A roadmap to success. Ivey Business Journal. Retrieved from http://iveybusinessjournal.com/publication/strategic-planning-a-roadmap-to-success/
• Parsons-Miller, S. (2016). Directional strategies in the development of strategy for a healthcare organization. Houston Chronicle. Retrieved from http://smallbusiness.chron.com/directional-strategies-development-strategy-healthcare-organization-81073.html
• Bradley, J. (2016). Operational versus functional level strategy. Houston Chronicle. Retrieved from http://smallbusiness.chron.com/operational-versus-functional-level-strategy-61306.html
• Johnson, S. (2015). The triangle of corporate strategy. Houston Chronicle. Retrieved from http://smallbusiness.chron.com/triangle-corporate-strategy-68313.html

Assessment Instructions

Note: Assessments 1 and 2 must be completed before beginning this assessment.

Analyze the relevance of the organization’s directional strategy, including its vision, mission, values, and organizational culture. The goal is to focus upon application of the concepts and new insight. Keep it brief and substantive. Note: Feel free to construct images/diagrams to summarize information where appropriate (for example, TOWS matrix…).

Complete the following:

• Review the mission, vision, and values statements of your health care organization.
• Examine how well each statement addresses the components of a directional strategy.
• Analyze the gap between the desired outcome and the actual state of the current environment.
• Analyze the organization’s directional strategy, including its vision, mission, and values.
• Examine the strategic “fit.” ◦Does the directional strategy fit the environment?

◦Is the organization headed in the right direction given the environmental assessment?

◦Does growth make sense right now or does maintaining the status quo or even contraction make better sense?

• Recommend changes you would make to ensure a foundation necessary for the current structure and strategies of the organization. Note: Support your recommendations with relevant resources from the literature.

Additional Requirements

• Length: 3–5 double-spaced, typed pages.
• APA formatting: Resources and citations are formatted according to current APA style and formatting.
• Resources: Use evidence from the literature to support your recommendations.