STRATEGIC PLANNING

A systematic process through which an organization agrees on, and builds commitment among key stakeholders to priorities that are essential to its mission, and are responsive to its environment. (Allison & Kaye 2005)

A creative process for identifying and accomplishing the most important actions in view of organizational strengths, weaknesses, opportunities and threats . (A.D Chandler 1962)

 To assist in establishing priorities and to better serve the needs of the members. It gives the direction to organization Improves efficiency, weeds out poor or underused programs. Eliminates duplication of efforts.

PURPOSE

 Concentrates resources on important services, improves communications. Coordination of activities. Provides a mind expanding opportunity. Allows adaptation to the changing environment. Sets realistic and attainable yet challenging goals and helps ensure goal achievement.

A GOOD STRATEGIC PLAN SHOULD BE:

Feasible Measurable Time specific Flexible Inspiring Inwriting

STRATEGIC PLANNING PROCESS

Mission and Objectives

Environmental Scanning
Strategy formulation Strategy implementation Evaluation and Control

Mission and Objectives Mission statement is the agreed upon statement by the organization and explains the reason for its existence. It is necessarily broad to encompass the diversity within the organization.

 Does not need to be periodically reviewed by the association to see whether it encompasses all of the relevant activities of the organization. It guides the pursuit of future opportunities

Environmental Scanning It includes a) internal analysis of the firm

b)Analysis of the firms industry (task environment) c)External macro environment (PEST analysis).

The internal analysis identify the firms strengths and weaknesses. The external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities and threats are generated by means of a SWOT analysis.

 A SWOT analysis worksheet is helpful. Each quadrant of paper is labeled as one of the 4 catagories Appropriate factors are listed in each quadrant for meticulous view of the situation audit.

Internal strength or weaknesses may include: management development qualification of staff financial situation market share facilities location quality of services

Threats may be: shortage of nurses, decrease in patient satisfaction, decrease in insured patients, increase in account receivable, decrease in demand for services, competitions, legislative changes, loss of accreditation .

Opportunities include: nurse and physician referral patterns, new programs, new markets, population growth, improved technology new facilities.

An industry analysis can be performed using a framework developed by Michael Porter known as Porters 5 forces. It include : barriers to entry, customers, suppliers, substitute products rivalry among competing firms.

The macro environment analysis includes : Political Economic Social Technological factors Referred to as PEST analysis.

Strategy formulation: the firm should match its strengths to the opportunities that it has identified. To attain the superior profitability, the firm seeks to develop a competitive advantage over its rivals.

Strategy implementation: The selected strategy is implemented by means of programs, budgets and procedures.
Implementation involves organization of the firms resources and motivation of the staff to achieve objectives.

Evaluation and Control: The results of the strategy need to be measured and evaluated, with changes made as required to keep the plan on track. Control systems should be developed and implemented to facilitate this monitoring. Standards of performance are set, the actual performance measured, and appropriate action taken to ensure success.

DRAWBACKS
The plan may not turn out as well as expected. Strategic planning is worthless in getting an organization out of major crisis. If the planning process itself is weak, the resulting plan may be weak and not satisfactory to the organization.