Strategic Alignment
In the last several years, the Strategic Alignment Maturity model is focusing on understanding how an organization can evolve with the different challenges they are facing. This is achieved by carefully examining the business and IT configuration of the firm. To fully understand how this works requires comparing the model with an actual health care organization (i.e. Kaiser Permanente). These insights will illustrate its effectiveness and how it helps companies to adapt. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)
I.1 Business Strategy 2
Kaiser Permanente is a managed care provider. They are focused on primarily delivering affordable low cost solutions to patients. This is accomplished by controlling expenses and investing in areas that will address their continuing needs. To achieve the objectives the firm operates three divisions to include: the Kaiser Foundation Health Plan, Kaiser Foundation Hospitals and Permanente Medical Groups. The different kinds of products / services offered by the organization include: low cost health plans, research on market conditions and providing health care solutions. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)
It is located in nine states to include: California, Colorado, the District of Columbia, Georgia, Maryland, Virginia, Oregon and Washington. The competitors of the firm are from: HMOs, insurance companies, Blue Cross / Blue Shield, PPOs and private health care providers. Some potential organizations which could be affecting the business are the increase in the number of providers staring in 2014. This is when the Affordable Care Act will take effect and consumers will have greater choices among providers / plans / solutions available. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)
In this case, the firm is perfectly aligned by having numerous sources of revenues, the ability to adjust and a profitable operating structure. These factors make it more flexible to numerous challenges it will face. One area where it could make improvements is to expand its services beyond the nine states. A possible avenue in achieving these objectives is to form strategic alliances with other HMOs, insurance companies and health care providers. They can offer coverage in these areas and help to increase Kaiser Permanente's customer base. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)
I.2 Distinctive Competencies
The critical success factors are that Kaiser Permanente offers health care services through their own facilities. This helps them to control costs and offer members with reduced premiums. The core competencies which assist the firm are: the tremendous amounts of research provided, they have an outstanding reputation and the pricing structure is reasonable. In this case, the firm is where it should be when it comes to its core competencies and factors contributing to their success. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)
I.3 Business Governance
The company sets its relationship between the different stakeholders through its practices and procedures. This is accomplished by establishing a mode which is focused on reducing costs, increasing services and profit margins. While ensuring that the needs of patients, management, stockholders and the board of directors are consistently achieved utilizing the pre paid care system. The company is currently partnered with Thrive. They are nonprofit organization affiliated with the Methodist church. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)
II.4 Administrative Structure
The administrative structure is controlling costs through actively being involved in every aspect of the way health care services are delivered. This occurs with owning hospitals, hiring doctors, setting up prepaid HMO plans and conducting on different issues impacting the sector. The management structure is following a horizontal model. This is when there will be different divisions to perform various functions. These are controlled by executives at the location. They will determine the specific needs based upon cost and the demand from plan members. ("About Us," 2013) (Wheatley, 2013) ("Strategic Alignment," 2013) (Chandler, 2003)
II.5 Processes
The workflow activities involve the different staff members regularly collaborating with stakeholders. This occurs as they will meet with patients and regulators based upon the practices. That is embraced inside those health care organizations owned by the firm. They will interact with supervisors and managers who will report what is happening to the board of directors. ("Fast Facts," 2013) (Wheatley, 2013) ("Strategic Alignment," 2013) (Chandler, 2003)
The board will run the organization and address critical issues they are facing. A similar process occurs when it comes to the managed care plan and the research they provide. In this case, the workflow of activities is moving up the chain of command with each level doing something to improve how services are offered and their costs. ("Fast Facts,"...
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