Strategic & Business Planning

Many hospitals, health systems, and medical groups focus their strategic planning efforts on the evaluation of independent initiatives and the financial return that each initiative can provide. These efforts are then prioritized and packaged into the new strategic plan for the organization. Unfortunately, the chosen initiatives may not complement each other and together may not enable the achievement of the organization’s strategic objectives.

So what is the proper approach to strategy formulation? And how can healthcare managers ensure that the action plans identified at the final stage match with the strategic vision determined earlier in the planning process?

We believe the organization’s vision must be “road tested” through the development of strategic themes that represent different potential futures. These themes are holistic, incorporating all aspects of a hospital’s future direction – inpatient services, ambulatory care, physician alignment, and research and education. They may vary in aggressiveness, timing, and priorities, but represent tangible alternatives that serve to clarify the vision and its implications for future success. Evaluation of these themes can then be reality-based, answering the truly important questions that can determine success or failure of any plan:

• Which theme best matches our stated direction?
• What are the capital and ongoing financial demands of each theme?
• Are the operational demands of each theme viable?
• What are the competitive implications of the various alternatives?

In short, through the process of theme development and the identification of a preferred strategic pathway, an organization can ensure that the resulting initiatives support the overall strategic objectives of the organization.

ECG has led many of the nation’s premier hospitals and health systems in developing and implementing organizational strategic plans. The process outlined below enables us to apply the hospital’s vision to tangible futures, thereby creating an implementable plan and significantly heightening chances for competitive advantage.

The following project examples further illustrate how we can help your organization: