When formulating strategies for an organization, there is a specific sequence of categories that should be used for optimal planning. It is important to follow the sequence in order, as each step develops and builds on the previous strategy. They are: directional, adaptive, market entry, competitive, and implementation.
An organization should start with directional, as this type of strategy looks at the vision, mission, and values of the organization as the foundation for strategies. Healthcare organizations in today’s market are expected to be of high quality while showing fiscal responsibility, and following the organizations mission, vision and values will keep any project planning in line with these expectations (Hui-chuan Chen, & Taylor, 2016). For my facility, our surgical services are seeing increased wait times for surgery, some exceeding 60-90 days, and this is a big concern as the organization must now assess its strategic plan to address this need which is not being met for the community.
Adaptive strategy looks at the organization to decide if it should expand, contract, or maintain its current directional strategy ( Iyengar, Katz, & Durham, 2016). Looking at my same organization, it is looking to expand, in order to meet the current demands. This could include, constructing to increase operating room space, adding add itional providers and staff, entering into new agreements with other facilities to accommodate our referrals, and/or renting space in an existing facility’s operating room for our providers to operate.
In the market entry strategy, the organization will be looking at ways to implementation the adaptive strategies, and through construction planning and budgeting, and cooperation agreements with outside providers and facilities ( Keurhorst, Heinen, Colom, Linderoth, Mussener, Okulicz-Kozaryn, K., . . . Wensing, 2016). Market entry strategies should address questions, such as; should we buy our way into the market (through partnerships or rental agreements), or should we develop the service ourselves (through construction and hiring). The market entry strategy should support the directional and adaptive strategy that was previously decided on.
In the competitive strategy stage, the organization must decide what will be the objective of this strategy, to be cost-competitive or service-competitive. When looking at the current organization discussed, a cost-competitive strategy is not necessary as there is already an overburden of patients waiting for services. Since the organization is looking to expand through construction, being service-competitive is the more prudent strategy. Since the organization will be expanding the operating room, looking at adding new technology to the budget as a part of the expansion project could help to recoup costs, and draw new customers to the organization.
Using implementation strategy, the organization will decide on an approach that will best achieve the goals for the organization. This could be through one strategy, or through a combination of strategies. For this organization, a combination of strategies would work best, with a short-term goal of finding an agreement with another facility to contract referrals until reaching the long-term goal of construction completion to care and treat its own patients. The short-term goal will help to get the patients the care they need in a timely fashion without hurting the reputation of the organization, and the long-term goal could position the organization as a market leader for advanced technology and care.
For an organization to keep its stakeholders focused on objectives and striving to reach its goals, it is imperative for the organization to follow the sequence of strategies, as this will help to ensure that all steps are following the mission, vision and goals set by the organization. For a healthcare organization, I feel that the directional strategy is most important, as it reminds the stakeholders in the project of the purpose for the planning and the patients everyone is working for. The directional strategy sets the stage for a constant refocus as to the main object, the people we are all striving to serve with the highest quality care.
References:
Hui-chuan Chen, C., & Taylor, M. (2016). An Assessment of government regulation on adaptive capability and managerial strategy in U.S. Healthcare. International Management
Review, 12(2), 5-19.
Iyengar, S., Katz, A., & Durham, J. (2016). Role of institutional entrepreneurship in building adaptive capacity in community-based healthcare organisations: Realist review
protocol. BMJ Open, 6 (3) doi:http://dx.doi.org/10.1136/bmjopen-2015-010915
Keurhorst, M., Heinen, M., Colom, J., Linderoth, C., Mussener, U., Okulicz-Kozaryn, K., . . . Wensing, M. (2016). Strategies in primary healthcare to implement early
identification of risky alcohol consumption: Why do they work or not? A qualitative evaluation of the ODHIN study. BMC Family Practice, 17, 1-16.
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