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Practical considerations and an illustrated example
Keywords Strategic planning, Health care, Planning, Process efficiency
Abstract Examines the strategic planning process as well as some practical issues associated with strategic planning. Specific emphasis is placed on a simplified approach to strategic planning. The relationship between strategic planning and performance is discussed. A brief overview of common approaches used to develop strategic plans is also provided An overview of the development of a preliminary strategic plan for a growing health care organization is discussed to assist practitioners in their planning efforts. Given that the illustration is for an initial strategic plan, an examination of performance implications was not possible. However, practical implications and some of the lessons learned are discussed.
Why do organizations develop strategic plans? While the answer to this question might seem relatively straightforward, the answer can be quite complex. Of course, one of the commonly cited reasons for strategic planning is to enhance organizational performance (Hahn and Powers, 1999; Shrader et al., 1984). Proponents of this rationale argue that well designed strategic plans provide an operational framework that allows the organization to enjoy distinct competitive advantages, thus experiencing improved performance (Porter, 1997). In some cases, the objective might be to trim overhead or reorganize existing resources within the same general strategic domain. In other cases, the organization might be intent on diversifying its products or services (Byrne, 1996). Another rationale for developing strategic plans could be to provide staff members within the organization information about the direction of the organization (as spelled out by the strategic plan) with the expectation that this information will elicit buy-in from these individuals (Stahl, 1998). An additional, but equally probable, rationale for developing strategic plans is to appease different constituencies of the organization. A not-for-profit organization, like a chamber of commerce for example, might develop a strategic plan to enhance the likelihood that the members of the local community or members of the political community will have favorable impressions of the organization. Finally, organizations might also develop strategic plans to appease funding sources or lending institutions. For example, a business with a relatively short financial track record might need a line of credit to fund future growth. The lending institution could, and probably would, require...