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Posted: May 3rd, 2023
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Planning is crucial to any business for them to be successful. The purpose is to determine the fundamental purpose of the health care business, analyze the environment, set objectives, decide on the actions needed to reach the objectives, and adapting the plan as feedback on the results is received. Strategic planning is a continuous process. Strategic plans are broad in scope and cover a long look into the future.
Strategic planning advantages include helping top management adapt to the rapidly changing health care environment, allows the organization to take advantage of opportunities created by change, and gives a sense of direction to the staff members. Other benefits of strategic planning can be an operation that operates in vision and not circumstances, employees that are motivated and engaged, and an organization that collaborates between divisions. Some of the factors that can affect future planning of an organization includes budgeting, level of staff expertise, levels of care provided, and time taken to provide that level of care (Bahadori, Teymourzadeh, et al. 2018).
Tools that can be used to assist an organization develop a strategic plan include: SWOT Analysis, Porter’s Five Forces, a PESTLE Analysis, and VRIO Framework. SWOT stands for strengths, weaknesses, opportunities, and threats. This tool helps determine new opportunities and areas where the health care organization may need improvement. Porter’s is a tool that helps determine the economic forces that impact the industry that is being planned for and then assist in determining that businesses competitive position. PESTLE stands for political, economic, social, technological, legal and environmental (Pourmohammadi, Bastani, et al., 2020). Businesses use this tool to look at the environment their business is operating in and assist with developing a strategy for success. Lastly, VRIO stands for value, rarity, imitability and organization. VRIO assist in identifying the competitive advantages of your services offered.
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