Strategic Planning - ROJoson - 2006

1. Strategic Planning

2. Strategic Planning
Process of determining where an organization
intends to be in the future and how it will get
there.
It is a way of finding the best possible future
course for the institution and then outlining
the best possible path of moving toward that
destination.

3. Strategic Planning Process
•What might we do (in terms of environmental
opportunity)?
•What can we do (in terms of ability and
strengths)?
•What do we want to do (in terms of personal
preference)?
•What should we do (in terms of social
responsibility)?

4. Strategic Planning
Output - long-term plans (2-5 years)
Planning Approach –
Traditional (centralized)
Decentralized
Ultimate goal – sustainability of organization

5. Strategic Planning Process
Situational Analysis
Evaluate current mission, goals and strategies
SWOT Analysis
Scan internal environment – core competencies,
synergy, values creation
Scan external environment
Identify strategic factors
S – Strengths
W- Weaknesses
O – Opportunities
T – Threats

6. Strategic Planning Process
Environmental Analysis
SWOT
Internal
environment
STRENGTHS
What do we do well?
WEAKNESS
What is wrong
now?
External
environment
OPPORTUNITIES
What possibilities
exist
THREATS
What can go
wrong?

7. Strategic Planning Process
Situational analysis
Define / redefine mission, goals, grand
strategy
Formulate new strategy (corporate, business,
functional)
Formulate key result areas and evaluation
parameters

8. Strategic Management Process
Evaluate Current:
•Mission
•Goals
•Strategies
Step 1: Situational Analysis
SWOT

9. Strategic Management
Scan External
Environment
Scan Internal
Environment:
•Core competencies
•Synergy
•Value Creation
Identify strategic
Factors:
•Opportunities
•Threats
Identify Strategic Factors:
•Strengths
•Weaknesses
SWOT

10. Strategic Management
Define New:
•Mission
•Goals
•Grand Strategy
Situational
Analysis
Step 2: define new mission, goals and strategy

11. Strategic Management
Define New:
•Mission
•Goals
•Grand Strategy
Formulate Strategy:
•Corporate
•Business
•Functional
Situational
Analysis
Step 3: Formulate new strategy

12. Strategic Management
Situational
Analysis
Implement Strategy via changes in:
•Leadership/culture
•Structure
•Human Resource
•Info and control
•systems
Define New:
•Mission
•Goals
•Grand Strategy
Formulate Strategy:
•Corporate
•Business
•Functional
Step 4: Implement new strategy

13. SWOT
Scan External
Environment
Identify strategic
Factors:
•Opportunities
•Threats
Evaluate Current:
•Mission
•Goals
•Strategies
Scan Internal
Environment:
•Core competencies
•Synergy
•Value Creation
Identify Strategic Factors:
•Strengths
•Weaknesses
Define New:
•Mission
•Goals
•Grand Strategy
Formulate Strategy:
•Corporate
•Business
•Functional
The Strategic Management Process
Implement Strategy
via changes in:
•Leadership/culture
•Structure
•Human Resource
•Info and control
systems

14. Operational Goals / Plans
Lower Management
(Departments/Individuals)
Tactical Goals/Plans
Middle Management
Major Divisions, functions
Strategic Goals/Plans
Senior Management
(Organization as a whole)
Mission Statement

15. Tactical plans
Designed to help execute
Major strategic plans
Accomplish specific
Part of the
Company strategy
Tactical Goals
Defines the outcomes
That major divisions
and departments must
Achieve in order for
The organization to
Meet its overall
goals

16. Operational Goal
Specific, measurable results
expected from departments
work groups and
individuals within
the organization
Operations Plans
Developed at the lower level
of organization that specify
action steps towards
achieving operational goals
and supports tactical
planning activities

17. Sample of
Strategic Planning
Manila Doctors Hospital
1999; 2003

18. Vision
Manila Doctors Hospital
Leading center of excellence and
wellness in the Philippines providing
holistic quality patient care
Gives a picture of what an organization wants to be;
Serves as a guiding light for managers, employees, and
others in bringing about change;
Creates a sense of enthusiasm;
INSPIRING

19. MISSION
Manila Doctors Hospital
To operate a world class hospital.
To undertake training and research programs to
continually improve quality services.
To pursue corporate social responsibility programs.
what we stand for;
who are our primary clients/beneficiaries
what are the unique products/services that our organization
can offer our clients?
what activities are we in? What will become of us 5 years
from now?
what are our basic values?
what are the key performance objectives such growth by
which we measure our success?

20. Goal
specific thrust or emphasis
that an organization takes within a
particular time and space in order to live its
mission and thus eventually attain its
vision
expressed in non-behavioral terms and start
with TO …….
Example: know, realize, appreciate

21. Goal
Manila Doctors Hospital
To serve as a health and wellness center for
all Filipino and international clients.

22. Objectives
Manila Doctors Hospital
1. To provide health care services that meet
the needs of Manila Doctors Hospital’s
clients or customers; all pertinent
statutory and regulatory requirements;
and the expectations of MDH Top
Management.

23. Objectives
Manila Doctors Hospital
2. To conduct training programs that will
continually improve services.
3. To conduct researches that will continually
improve services.
4. To provide competent staff at all times.

24. Objectives
Manila Doctors Hospital
5.To establish and continually improve a
quality management system.
6.To provide corporate social
responsibility programs for the
underprivileged and underserved in
the community.

25. Manila Doctors Hospital
Strategies
Strategy Formulation

26. Strategies
to Achieve
Vision-Mission
of
MDH

27. I. To build the best private general
hospital with specialty units.
II. To ensure customer satisfaction
through efficient quality service.

28. III. To strengthen financial viability
and sustainability.
IV. To develop an organization
structure responsive to current
and emerging needs.

29. V. To develop social service
programs in order to enhance the
social responsibility of the
institution by strengthening and
systematizing the social services
and community outreach programs.

30. VI. To strengthen and innovate
research programs.
VII. To strengthen human
resources.

31. VIII. To evaluate and enhance
current pastoral program.
IX. To develop Manila Doctors
College in terms of registration and
courses.

32. Strategic Planning for Hospital
Other Input / Info Needed
Health-care Industry
Hospital Financial Sustainability
Financial Management

33. Overview of the
Health Care Industry

34. Health Care Industry
organized activities
going on in the field of health care
in the community

35. Health Care Industry
Elements:
–Health care services
–Suppliers for the health care services
–Users of the health care services
–Logistics for the health care services – suppliers and
users
–Factors affecting all of the above – such as demand,
supply, regulations, sustainability, etc.

36. Health Care Industry
For a physician-to-be
for a physician-manager-to-be
for a physician who will establish a private medical practice
after graduation
for a physician who will be administrators of health care
programs and organizations
it will be helpful to have an overview of the health care
industry.
Knowledge of such will be useful in the planning of the
physician in any of the above roles.

37. Health Care Industry
What is a health care service?
It is a service intended for the
prevention, treatment, and management of illness and
the preservation of mental and physical well-being
of human beings.

38. Health Care Industry
What are different types of health care?
Personal /private health care – benefits only the user of the
service directly. Most of curative care will be in this category.
Public health care – benefits the community as a whole,
whether or not they are conscious user of the service. For e
xample, spraying for mosquito control benefits the entire co
mmunity

39. Health Care Industry
Who are the suppliers of the health care services?
Physicians, nurses, and allied health professional providers.

40. Health Care Industry
Who are the users of the health care services?
Direct users – persons in immediate need of health care
services.
Indirect users – people or organizations providing the pre-
need and in-need health services of their clients, staff, and
loved ones.

41. Health Care Industry
What are the logistics involved in providing health care
services?
•Cost in establishing an infrastructure for the health care
services.
•Cost in providing health care professionals in health care
organizations.
•Cost in delivering the health care services.
•Cost in marketing the health care services.

42. Health Care Industry
What are the logistics involved in acquiring health care
services?
Direct users pay for the cost of the health care services.
Indirect users pay for the cost of the health care services.

43. Health Care Industry
What are the usual sources of funds for health care services?
Direct users
Health insurances
Government thru taxes and other funds

44. Health Care Industry
What are the factors affecting all of the above?
•Demands – amount of users (number of people in need of
health care services; number of people who can afford; etc.)
•Supply – amount of health care providers (physicians,
nurses, and allied medical professionals)
•Accrediting and regulatory bodies such as Department of
Health and PhilHealth; BIR (taxes)
•Competition
•Sustainability

45. Hospital
Financial Sustainability Model

46. Hospital Financial Sustainability Model
Clients
Clients
Clients
Utilization
of hospital
services
Financial
Sustainability
Health
care
system
MD
Hospital
Input Thruput Output Impact
Walk-
in

47. Clients
Clients
Clients
Utilization
of hospital
services
Financial
Sustainability
QMS
“Good” MDs
Hospital
Walk-
in
HCS
Right No.
Patronizing MDs
Strong Patient Following
MD
Main factors
that will attract clients and lead to utilization of services

48. Requisites for attaining factors that will lead to sustainability
Financial
Sustainability
QMS
“Good” MDs
Hospital
HCS
Right No.
Patronizing MDs
Strong Patient Following
Training for QMS
ISO 9001 Certification
PhilHealth Benchbook
Joint Commission
International (JCI)
Requisites

49. Requisites for attaining factors that will lead to sustainability
Financial
Sustainability
QMS
“Good” MDs
Hospital
HCS
Right No.
Patronizing MDs
Strong Patient Following
Requisites
Professional Competency
Spend most of the time in
the hospital
Affiliated with one or few
hospitals
Love/like the hospital
Recruitment/Attraction

50. Hospital Financial Sustainability Model
Financial
Sustainability
QMS
“Good” MDs
Hospital
HCS
Right No.
Patronizing MDs
Strong Patient Following
Training for QMS
ISO 9001 Certification
PhilHealth Benchbook
Joint Commission
International (JCI)
Requisites
Professional Competency
Spend most of the time in
the hospital
Affiliated with one or few
hospitals
Love/like the hospital
Recruitment/Attraction

51. Spend most of the time
in the hospital
Affiliated with one or
few hospitals
Love/like the hospital
Attraction
Opportunity for
•Occupational
contentment
•Teaching - med school
•Research
•Administration
Attractions for making MDH
a second home
Strategies for MDs

52. No. of MDs
No. / specializations
No. holding clinic at
least 3x/wk
No. holding clinic
more than 3 hrs/day
No. of MDs with 48
admissions/yr
200+
more
needed
70%
40%
50%
500+
Increased
90%
90%
90%
Present Target
Sample
Considerations in the Planning for Recruitment/Attraction of MDs

53. Control vacant
offices
Mgt Policy
Entice MDs to
share office Create spaces in the
present MD offices

54. Control vacant
offices
Create spaces in the
present MD offices
Allow more
MDs to hold
office
Attract Screen Recruit
No more stocks or
assigned stocks
Performance - Financial Sustainability

55. Financial Management System

56. Financial Management

57. Financial Management
operational activity of a business
that is responsible for
obtaining and effectively utilizing the
funds necessary for efficient operations.

58. Financial Management
For a physician-to-be
for a physician-manager-to-be
for a physician who will establish a private medical
practice after graduation
for a physician who will be administrators of health
care programs and organizations
it will be helpful to have an overview of the financial
management system.
Knowledge of such will be useful in the planning of
the physician in any of the above roles.
.

59. The Financial Management Plan
Goal:
To ensure financial sustainability and
stability
through effective and efficient utilization
of monetary funds.

60. The Financial Management Plan
General objective:
To effect a sound management of
monetary resources in support of
organizational goals.

61. The Financial Management Plan
Evaluation parameters and criteria:
Sound management of monetary
resources
Positive income
No undue losses

62. The Financial Management Plan
Strategies:
Accounting System
Cost Management
Asset Management
Account Receivables
Budgeting

63. The Financial Management Plan
Strategies:
Accounting System
a bookkeeping system which tracks the money coming
in vs. going out.

64. The Financial Management Plan
Strategies:
Cost Management
the process whereby companies use cost accounting
to report or control the various costs of doing
business.

65. The Financial Management Plan
Strategies:
Asset Management
the management of the financial assets of
a company in order to maximize return.

66. The Financial Management Plan
Strategies:
Account Receivables
the money that is owed to a company for
goods and services it has provided to
customers on credit.

67. The Financial Management Plan
Strategies:
Budgeting
the activity of predicting how much
money the organization will spend during
a specified period.

68. The Financial Management Plan
Monitoring Reports:
Financial Statement
Income Statement
Balance Sheet
Cash Flow

69. The Financial Management Plan
Monitoring Reports:
Financial Statement
A written report which quantitatively describes
the financial health of a company.
Includes an income statement, a balance sheet,
and often also includes a cash flow statement.
Usually compiled on a quarterly and annual
basis.

70. The Financial Management Plan
Monitoring Reports:
Income Statement
An accounting of sales,
expenses, and net profit for a
given period.

71. The Financial Management Plan
Monitoring Reports:
Balance Sheet
A quantitative summary of a company's
financial condition at a specific point in time,
including assets, liabilities and net worth.
The first part of a balance sheet shows all the
productive assets a company owns, and the
second part shows all the financing methods
(such as liabilities and shareholders' equity).
Also called statement of condition.

72. Balance Sheet
2003 2004
Assets
–Cash and short-term investments
–Accounts receivable
–Inventories
–Other
Px,xxx
xxx
xxx
xxx
Px,xxx
xxx
xxx
xxx
Total Assets Px,xxx Px,xxx
Liabilities
–Accounts payable
–Accrued compensation
–Income taxes payable
–Other
Px,xxx
xxx
xxx
xxx
Px,xxx
xxx
xxx
xxx
Total Liabilities Px,xxx Px,xxx
Shareholder’s Equity Px,xxx Px,xxx

73. The Financial Management Plan
Monitoring Reports:
Cash Flow
A measure of a company's
financial health.
Equals cash receipts minus cash
payments over a given period of time;
or equivalently, net profit plus amounts
charged off for depreciation, depletion,
and amortization.

74. Budget
A quantitative expression of a plan of action,
specifically, a business plan with expression of
goals and objectives in the short term.
It is usually stated in monetary terms and cover a
period of one year.
It is an integral part of the overall management
control process of an organization.

75. Objectives of Budgetary Programs
To provide a written expression, in quantitative
terms, of the policies and plans of the unit
To provide a basis for the evaluation of financial
performance in accordance with the plans
To provide a useful tool for the control of costs
To create cost awareness throughout the
organization

76. Purpose of Budget Making in Departments
To determine the annual logistic requirements of the
departments in achieving their annual objectives.
(Note: this assumes that there must be preset
rationalized, specific, tangible, and achievable
annual department objectives before the logistic
needs are calculated.)

77. Purpose of Budget Making in Departments
To determine the annual logistic requirements of the
departments in achieving their annual objectives.
This budget will be used as a guide in governance,
in rational spending according to directions and
purpose, not only by the managers of the
departments as well as by the hospital
administration.

78. Annual departmental business action plan as
basis for budget proposal
The business action plan of the department for the
incoming year should serve as a basis for the
budget proposal for the incoming year.
The business action plan and performance results of
the department for the previous year(s) should
serve as a reference and basis for the incoming
management action plan and budget proposals.

79. Annual departmental business action plan as
basis for budget proposal
Thus, before the proposed budgets are put in, each
department must have a business action plan for
the incoming year as well as business action plan
and performance results in the previous year(s)
and the current year to date.

80. How to make a business action plan
Key Target
Areas
Performance
Objectives
Programs /
projects /
activities/needs
Proposed
budget
Health Service
Development
Health Care
Delivery
Services
Training
Research
Others