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Strategic planning process
Strategic planning process is a critical component of the health care delivery system. Its application cuts across governmental and private practice institutions. Ordinarily, it consists of four main steps which include situational analysis, strategy formulation, strategy implementation, and strategy evaluation (Duncan, Swayne and Ginter 2006). All these processes are taken into account when formulating strategies for a health care organization since they are integrated in nature. Strategic planning involves the proposition of specific goals, objectives, inputs, and outputs relevant to a specific organization. The process of defining goals, objectives, and strategies is based on standard criteria (Duncan et al. 2006). They must be specific, measurable, attainable, rewarding, and Timely. Any proposal not fitting the above criteria presents significant difficulty during the evaluation process.
Situational analysis involves a critical outlook of the organizational components that go into the actual production process. The components include organizational context, internal environment, and external environment (Duncan et al. 2006). These encompass all the relevant human factors, physical factors, social factors, and economic factors that come into play during the fulfillment of organizational goals and strategies. The stage involves identifying individual elements that affect specific process in the entire framework (Duncan et al. 2006). The internal environment, for instance, is based on organizational practices which hamper health service efficiency but are subject to control by the organization.. External factors on the other hand are purely based on the factors resulting from an organizations interaction with its environment and which are not subject to control by the health organization.
Strategy formulation involves the actual provision of the organizational strategies. Here the managers of the health care institution suggest approaches that will be used in realizing the proposed goals and objectives (Duncan et al. 2006). Stakeholder involvement is very critical in this stage. This illustrates the various hierarchies existing in the provision of critical health services. The formula pursues the involvement of all the key players in the health care sector (Emmy 2007). A participatory framework is therefore provided in which members of staff, health care managers from subsidiary organizations, government authorities, and partners from non health care affiliations give their divergent views of varied subject matters (Duncan et al. 2006). These may include governmental health regulatory bodies, ministry of health, standard setting organizations, insurance bodies, and financial partners.
Strategy implementation involves the actual realization of the proposed strategies in the organizational framework. Here the key players are service providers, for instance, health care staff found in an ordinary institutional arrangement (Emmy 2007). The key element is to get a substantial input from all the relevant stakeholders or else it may be a total failure (Duncan et al. 2006). The managers of the organization need to give consideration to existing standard procedures and guidelines so as to ensure actual realization of the organizations objectives. Massive resource input in terms of finance, material, and human factors may be required in instances where uncertainties occur (Duncan et al. 2006). Care should therefore be taken to provide services to patients in an orderly manner following the provided plan.
Strategy evaluation involves the institution of checks and balance system that will ensure proposed guidelines, strategies, programs, and activities are implemented appropriately. It serves to identify and eliminate weak points in the organizations system, which hamper service provision to the clientele (Duncan et al. 2006). It essentially builds the organizations capacity and position in the health care sector. The criteria used during evaluation entails the analysis of measurable variables against set standards, for instance, the number of patients who consulted orthopedic services during a specific time span.
Importance of financial planning
During strategic planning, financial planning forms a key step in the overall process. Financial resources are the main drivers towards the achievement of proposed strategies in a framework (Cleverly and Cameron 2007). The need for finance is seen at strategic points during which lack of it would imply total failure. It entails the provision of budgetary estimates in terms of assets, liabilities, staff incomes and logistical issues, all of which are necessary in fulfillment of stated health organizational goals and objectives (Cleverly and Cameron 2007).
The provision of material supply elements to a health organization depend on various market factors that are constantly changing. These need to be considered during budgetary formulation. It would therefore determine the allocation criteria that will be used. The managers need to do a futuristic estimate of market factors in order to prevent the arising of gaps evident in many areas of health service provision (Cleverly and Cameron 2007).
Financial planning will therefore ensure constant flow of required medical supply, motivation of health staff, uncertainties, risk factors, insurance, and arising contingencies. The success elements of the health organization depend on these critical components. The projection of financial needs forms the basis for their identification especially during situational analysis and strategy formulation (Cleverly and Cameron 2007). Stakeholder involvement is also critical in this step in the determination of program goals.
Scenario analysis and planning
Scenario analysis takes critical account of the significant model outputs, prediction of uncertainties, and identification of interaction points between important components and outputs from a system. It entails the identification of individual human behaviors, and system conditions. This enables the quantification of associated uncertainties that are bound to arise in the process of formulating identified strategies (Susanna and Gish 2000).
Traditional approaches are based on standard protocols which are provided and meant for a specific sector. This disregards the contextual differences that are bound to arise in the processes of directing particular organizational processes. Scenario analysis enables present and recurring contexts to be infused into the overall system (Walston 2004). This presents relevant measures to be implemented in case unexpected conditions arise during the actual implementation process.
The interactions in an organizational setting are very critical in the strategic management of program inputs and processes. They have the ability of guiding organizational activities in a certain direction (Walston 2004). This is important considering the fact that in the health sector, efficacy of clinical processes is used as a bench mark for assessing service provision based on the outcomes. Through comparison of similar situations existing elsewhere the health managers are able to infuse correctional measures in advance.
Scenario planning is essential for the health organizations success as seen in mitigation of weak points during scenario analysis. During the process the manager uses a virtual testing framework to project events (Walston 2004). This enables him or her to make crucial adjustments in the areas of concern by allocating more material, human, and financial support to such areas. The creation of priority elements is important as it serves to build achievable strategies
References
Cleverly, W. and Cameron, A. (2007). Essentials of Health Care Finance. London: Jonas & Bartlett Publications.
Duncan, W. Swayne, L. and Ginter, P. (2006). Strategic Management of Health Care Organizations. Wiley Publishers
Emmy, T. (2007). Strategies Development Processes. New York: Emerald publications
Walston, S. (2004). Healthcare Strategy. Cornell University: Health Administration Press
Susanna, K. and Gish, S. (2000) Healthcare Financial Management.. Vol. 54, Iss. 9; pg. 41
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