Strategic Management in Healthcare: Components and Benefits

Components of Strategic Management

Strategic management comprises five major components, each of which plays a distinct role in guiding an organization toward its goals.

Establishment of the Goal. This element serves to make the organizational vision clear. It encompasses three important aspects: the definition of long- and short-term objectives; the identification of the means by which to attain those goals; and the customization of procedures for employees by assigning to every member a task in which they can succeed (Kazmi, 2008; Jasper & Crossan, 2012).

Analysis. The component of analysis entails collecting sufficient data and facts pertinent to realizing the defined vision. Emphasis must be placed on understanding organizational needs — considering the enterprise as a sustainable unit — its strategic course, and the identification of initiatives to facilitate business growth (Kazmi, 2008; Jasper & Crossan, 2012).

Formulation of Strategy. The element of strategy formulation entails reviewing information gathered during analysis, determining currently available resources that can aid in attaining the established objectives and goals, and identifying areas in which the enterprise needs to seek external resources. The significance of this component lies in prioritizing the issues faced by the organization based on their relevance to business success (Kazmi, 2008; Jasper & Crossan, 2012).

Implementation of Strategy. Effective implementation of corporate strategy is central to a business venture's success. This represents strategic management's action component — the point at which formulated plans are translated into operational activity (Kazmi, 2008; Jasper & Crossan, 2012).

Evaluation and Control. Control and evaluation incorporate performance measurements, regular review of external and internal issues, and corrective action wherever required. Because external and internal conditions evolve continuously, all information obtained at this stage must be retained to facilitate future strategy development (Kazmi, 2008; Jasper & Crossan, 2012).

The Role of Mission and Values in Strategy Formulation

Mission statements are crucial for companies because they define a business, its clients or customers, and its offerings — whether services or products. Vision statements, meanwhile, depict the organization's future appearance should it successfully attain its mission. Together, a company's mission and vision provide a general sense of organizational direction. Values and mission have increasingly been acknowledged as reflecting organizational identity — its principal, unique, and enduring character. Evidence indicates that corporations which survive and thrive in the long run possess a well-defined sense of corporate identity, while also being sufficiently adaptable to recognize when that identity must evolve in light of major environmental changes (Jasper & Crossan, 2012).

A mission statement assists in assessing whether the organizational strategic plan will align with overall goals, whereas a vision statement inspires personnel. A workforce that feels it has meaningfully participated in bringing about organizational change is more likely to remain motivated and to exhibit higher productivity levels. In short, a company's vision and mission serve as key guides in setting the direction of a strategic plan and in gauging success in organizational mission attainment. Concurrently, they encourage personnel — who constitute the most essential factor in corporate goal achievement (Jasper & Crossan, 2012).

Benefits of Strategic Management in Healthcare Organizations

Strategic actions and decision-making are a pivotal component in determining long-run organizational performance and necessitate continuous monitoring for external opportunities, threats, and changes. A healthcare facility or hospital functions within a dynamic and unpredictable environment, giving rise to numerous challenges for healthcare professionals in delivering and maintaining quality health services. It is therefore vital that healthcare organizations develop and employ strategic plans to make the most of an evolving environment.

Firms that adopt strategic management will consistently enjoy greater success than those that do not. Through strategic organizational planning, a firm is better able to capitalize on existing opportunities that provide explicit purpose, resources, commitment, and support, and to effectively surmount challenges in maintaining smooth organizational operations. Strategic management offers additional advantages, including improved decision-making, focused energy, clearer priority establishment, enhanced motivation and employee participation, and better resource availability. Furthermore, strategic management helps businesses establish new directions or objectives in order to bring about necessary change in conformity with external regulations and to maintain superior levels of customer satisfaction. These benefits make strategic management a key component for all healthcare organizations seeking to sustain efficient long-term operations (Jasper & Crossan, 2012).

References

Certo, S. T., Moss, T. W., & Short, J. C. (2009). Entrepreneurial orientation: An applied perspective. Business Horizons, 52, 319–324.

Didsbury, H. (Ed.). (1996). Future vision, ideas, insights, and strategies. Bethesda, MD: The World Future Society.

Jasper, M., & Crossan, F. (2012). What is strategic management? Journal of Nursing Management, 20(7), 838–846. doi:10.1111/jonm.12001

Kazmi, A. (2008). Strategic management and business policy (3rd ed.). New Delhi: McGraw-Hill Companies.