Strategic Planning

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STRATEGIC PLANNING

Importance of Strategic Planning2

Roles and Responsibilities3
Governing Board
Strategic Planning Committee
Chief Executive Officer
Medical Staff
Department Heads
Patients and Community
Planner
Consultants

The Steps of Strategic Planning5
Get Organized
Perform an Environmental Assessment
The Internal Assessment
The External Assessment
Develop a Vision
Review the Mission Statement
Develop Strategies
Goal Approach
Critical Issues Approach
Scenario Approach
Prepare the Strategic Plan
Approve the Plan
Implement the Plan
Monitor and Evaluate the Plan

Resources11

Summary11

References12

The Governing Board of a hospital/health system is responsible for that hospital’s planning process. A strategic planning process must be established to position the hospital/health system in a rapidly changing environment.

Strategic planning is the process of determining what an organization wants to be in the future and how it will get there. Hospitals that develop and implement strategic plans tend to be more successful than those that don’t.

Strategic planning is different from short-term or operational planning. Operational planning usually focuses on an annual cycle and requires the development of yearly objectives and plans. This becomes part of the annual budgeting process. Operational plans lay out how the hospital will move toward its future during that year. The future is described in the hospital’s strategic plan.

Strategic planning requires that choices be made about your hospital’s future. These choices concern your vision and mission, the goals to be pursued, what services will be offered and to whom, the resources that will be needed (people, facilities, technology, money and knowledge) and how they will be acquired.

IMPORTANCE OF STRATEGIC PLANNING
A hospital/health system should plan for its future to:

Improve the hospital’s performance
Determine the hospital’s future direction
Provide high quality health care services
Optimize resource allocation
Meet accreditation and regulatory requirements
Meet the hospital’s vision and mission statement
Maximize its chances for success

Strategic planning is widely practiced by Washington hospitals and health systems. Strategic planning can have a positive effect on a hospital, but it is not the answer in all situations or to all problems. Before engaging in strategic planning, the Governing Board needs to:

Understand what strategic planning is and how to do it
Determine if the hospital is stable. If the hospital is in a crisis – for example, in danger of closing – the crisis must be dealt with immediately Identify whether a need for change exists
Be committed to the planning process and include the participation of the hospital administration, community, physicians and staff Decide if the hospital has the capability, resources and commitment needed for the planning process

Planning takes time and money. Both must be allotted to the process. It is important to make sure that the necessary resources, including Board and staff time, are available to plan for the future and keep operating in the present.

ROLES AND RESPONSIBILITIES

GOVERNING BOARD
The Governing Board has the principal responsibility for strategic planning. The Board guides the development of the plan consistent with the hospital’s mission, philosophy and values. The role of the Governing Board in strategic planning process includes:

Approval of the hospital’s vision, mission statement and goals Suggestion and considerations of strategies
Approval of the strategic plan and its implementation
Monitoring and updating the plan and its implementation

The chair of the Governing Board appoints the Strategic Planning Committee.

STRATEGIC PLANNING COMMITTEE
The Strategic Planning Committee is responsible for:

Organizing the planning...
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