Business

Business Strategy-Strategic Planning

Wed, 11 Nov 2009 20:17:14 GMT

Which of the following below are not one of Corboy and O'Corribui's "seven deadly sins" of strategy implementation?

A. People are not sure how the strategy is to be implemented;

B. The strategy is lacking in terms of rigor, insight, vision, ambition or practicality?

C. The strategy is communicated on a "need of know" basis than freely throughout the organization;

D. Development of the strategic plan is the "top down", developed by the Board of Director's and communicated to Executive Management, then down to the front line staff;

E. No one is responsible for each aspect of the strategy implementation;

Answer D. Healthcare Strategic PLanning-Transition to implementation pages 86.

Medical Homes

Tue, 10 Nov 2009 19:54:43 GMT

As resources continue to become more scarce in our industry, I'm wondering whether anyone has developed an effective approach to objectively evaluating program investments across the continuum of care. In my view, we have well established methods for prioritizing opportunities in the hospital arena. However, when we try to compare initiatives across the continuum it becomes more challenging, in my view. Is it more valuable for an organization to pursue a medical home strategy, or expand its cardiac surgery program? What metrics do you believe would be helpful in determining how to "funnel" investment dollars - community need, ROI, etc? How does your organization's management process support this kind of decision-making, particularly when key measures often provide evidence that supports different paths forward? Any thoughts would be appreciated.

Components of Marketing Plan

Fri, 06 Nov 2009 02:21:28 GMT

What are the four key components of a successful marketing plan?

Answer: Marketing research and analysis, customer retention plan, public relations strategies, and marketing strategies (Online tutorial, Dunn)

Exam Discussion

Thu, 05 Nov 2009 22:28:14 GMT

" Marking and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. and you get paid for creating a new dimention of performance, which is innovation. Everything else is a cost center " by Peter Drucker.

How do you justify the above principles in the Healthcare Mangement?

Question

Tue, 03 Nov 2009 04:03:43 GMT

In Chapter 8, Clinical Support Service functions have been divided between clinical and managerial within the professional arena. The text indicates that both areas are essential. Added to that, CSSs will share any number of the functions that are common to both. Eight functions were identified and these are:

1. Ensuring quality of service,

2. promoting effective use,

3. managing the physical facility,

4. providing patient-and physician-friendly amenities,

5. scheduling and coordinating care,

6. continuously improving,

7. budgeting, and

8. recruiting associates.

The relationship between protocols and functions is interactive. As the text has stated, “protocols improve functional processes by several different mechanisms:

1. Eliminate unnecessary or redundant tasks

2. Alerting for tasks previously overlooked or omitted

3. Standardization of supplies

4. Scheduling or resequencing to reduce errors or delays

5. Substituting lower-cost personnel for specific activities

6. Reengineering the care process” (Chapter 5)

The question is: If healthcare is customer driven, then would operational efficiency operate with appropriate interaction between functions and protocols at such a level that meeting the requirements from which customer satisfaction is determined attain the category of “delighters” using a Kano analysis and what criteria are needed to support the outcome?

Strategic Planning and Financial Performance

Mon, 02 Nov 2009 15:45:34 GMT

There seems to be some debate as to whether strategic planning should be driven by Financial Priorities or purely by the mission, vision and values of the organization. I have attached an article below that I believe highlights the interrelationship of these two dynamics. The following is what I thought to be a significant excerpt:

“ To survive continued change in the industry, hospitals must integrate financial and strategic planning, according to a recent report, The Practice of Planning, published by the American Hospital Association's Society for Healthcare Planning and Marketing. (b) A facility's planning process must fall in line with its financial realities. In many cases, a healthcare organization's finance division already gathers information needed for strategic planning.”

http://findarticles.com/p/articles/mi_m3257/is_n10_v45/ai_11405662

Effectiveness of Strategic plans

Sun, 01 Nov 2009 18:12:42 GMT

I felt one of the key concepts displayed in "Healthcare Strategic planning: Is strategic planning still relevant," (pages 11-12) was on the typical problems that limit the effectiveness of strategic plans. The text revealed several problems that are typically encountered. They include:

-Failing to involve the appropriate people

-Conducting strategic planning independently of financial planning

-Falling prey to paralysis of analysis

-Not addressing the critical issues

-Assuming that established objectives take care of themselves

-Failing to develop consensus

-Lacking flexibility and responsiveness to the environment

Strategic planning is not something that you create and then it is tucked away. The strategic plan has to be a living, breathing document that can be updated as new challenges come into play...adjusting to the current environment.

Influences of Market Segments on Marketing Strategies

Sun, 01 Nov 2009 13:02:19 GMT

Conceptual Models of Market Segmentation

Description

The conceptual model of market segmentation in the healthcare industry is based on predictive measures. In healthcare, it is imperative that segmentation information be predictive as opposed to descriptive. Although typologies are part of a methodological framework, they are important in segmentation and building theory. Mckinney (1996) pointed out, “The constructed type as a conceptual device represents an attempt to advance concept formation in social sciences from the stage of description and empirical generation to the construction of theoretical systems” (as cited by Slater, 2006, p.272).

Healthcare marketers use cluster and a priori techniques - types of the conceptual model. In the cluster technique, lifestyle or psychographic studies are segmented. This framework is designed to determine a cluster of relevant variables based on benefit, need, and attitude segmentation (Malhotra, 1989). The benefit of the cluster technique is the responsiveness of participants during the process. However, “…clustering of a small number of units on a large number of variables could lead to capitalization on chance and instability of the resulting clusters” (p. 46).

The a priori technique determines segmentation variables; categories are decided prior to data collection. “Examples of this approach include segmentation based on demographics, state of being, or geographic variables” (p. 46). The major benefit of a priori segmentation is the measurability and actionability criteria. If a priori conclusions are inaccurate, the resulting intervention measures will suffer.

Process for Determining Market Segmentation

A major determinant of the nature and direction of a firm’s economy is the consumption patterns (demand) of various market segments. Market segmentation involves identification of subgroups of consumers or industries that share similar attributes that cause them to have similar product or service needs (Francese, 2007). The importance of market segmentation is the identification of target markets and selection of target consumer/industry segments to choose the most beneficial marketing strategy or strategies for a particular marketing mix. The steps in segmenting and targeting the market are as follows:

1. Group consumers into segments

2. Group related products or services

3. Develop a market-product grid with estimated size for each market

4. Select target market segments in which to focus

5. Take mixed marketing actions to reach target markets (Kerin, Hartley, Berkowitz, & Rudelius, 2006, p. 28)

“Factors used to segment consumer markets include customer characteristics (geographic, demographic, and psychographic variables) and buying situations” (Kerin et al, 2005. p. 254). Following are examples of how certain customer characteristics can be used to segment specific markets:

1. Geographic customer characteristic: Region, city size, statistical area, and density

2. Demographic customer characteristic: Household size, marital status, income, education, occupation, gender, age, race, life stage, and birth era

3. Psychographic customer characteristic: Lifestyle, personality, and values

4. Buying situations are another way to segment consumer markets. These buying situations include benefits sought (product features, quality, service, warranty) and usage (heavy user, light user, nonuser). (Kerin et al, 2005, p. 239)

Variance in Different Situations

In healthcare market segmentation, the situation is a supply/demand dilemma. The risks associated with consumption patterns or demand in healthcare among the different market segments includes an imbalance between supply and demand. In most industries, an increased demand for the product or service is the desired choice. However, in healthcare, a shortage of healthcare workers exists and an overabundance of healthcare consumers predominate the industry (Jorgenson Huston, 2003). This scenario will worsen with an aging, growing, and sicker population as well as with a predicted increase in the shortage of healthcare workers such as nurses. Additionally, governmental regulatory and enforcement measures mandate that nonprofit hospitals provide charity care to the socioeconomically challenged in exchange for a tax-exempt status or face sanctions. Therefore, the goal of many non-profit hospital systems is to reduce the demand of healthcare consumers and increase the supply of nurses.

Influences of Market Segments on Marketing Strategies

Differentiation

Marketing strategies that focus on building customer loyalty and emphasizing an appealing attribute of the product or service are dependent on differentiation strategies (Pearce & Robinson, 2004). For example, through extensive market development practices in recruitment and retention, Banner Health (BH) has an exemplary nurse-to-patient ratio and the organization has received several awards for being the best place to work for nurses (Magnet Status). BH has used these attributes to recruit and retain nurses. This increases the supply of nurses and improves the quality of healthcare outcomes. However, there are risks associated with the differentiation strategy to include differentiation is not sustained because of competitor imitation and increased differentiation of competitors results in loss of interest in the product or services from consumers (Pearce & Robinson, 2004).

Market Development/Concentrated Growth

Market development allows firms to practice a form of concentrated growth by identifying or expanding new uses for existing products or services. BH has successfully maintained an acceptable nurse-to-patient ratio and is using its vast resources to build new hospitals. However, an inadequate supply of nurses and an overabundance of patients are plaguing the entire healthcare industry and competition for these nurses is high. Therefore, to ensure an adequate supply of nurses, BH has promoted market development/concentrated growth to retain this valuable consumer. Frequently, changes in media selection, promotional appeals, and distribution are used to initiate this approach (Pearce & Robinson, 2004, Chapter 6).

Under optimal conditions, market development / concentrated growth poses a low risk to BH; however, other factors such as an aging and growing population, the continued shortage of nurses, and an increase in chronic illness are just a few risks that can thwart the marketing strategy. Pearce and Robinson (2004) asserted,

Slowed growth in the segment would jeopardize the firm because its investment, competitive edge, and technology are deeply entrenched in a specific offering. It is difficult for the firm to attempt sudden changes if near-term obsolescence, a faltering market, and new substitutes threaten its product [or service], or changes in technology or customer needs. (Chapter 6)

References:

Francese, P. (2007). The changing face of the U.S. consumer. Advertising Age, 79(26).

Jorgensen Huston, C. (2003). Quality health care in an era of limited resources: Challenges and opportunities. Journal of Nursing Care Quality, 18(4), 1-12.

Kerin, R., Hartley, S., Berkowitz, E., & Rudelius, W. (2005). Marketing.

(8th ed.).

Liodice, B. (2008). Marketers get serious about accountability.

Advertising Age, 79(33), 22-22.

Malhotra, N. (1989). Segmenting hospitals for improved management

strategy. Journal of Health Care Marketing, 9(3), 45-52.

Pearce, J. & Robinson, R. (2004). Strategic management (9th ed.). New York: McGraw-Hill.

Slater, M. (1996). Theory and method in health audience segmentation. Journal of Health Communication, 1, 267–283.

Strategic Planning

Thu, 29 Oct 2009 18:54:31 GMT

Having worked in senior administration for some time I have found, at least for me, that all strategic planning is centered around our mission, vision and values and that it is increasingly more difficult to arrive at long-term goals. The nature of healthcare moves us to adjust long-term goals based on market and that the facility is now more engaged in looking at community-based epidemiologic planning. We have a tendency to adjust, based on community need, more frequently now than we did five years ago and that success requires expendiency.

Marketing

Sun, 13 Sep 2009 23:42:01 GMT

In regard to marketing; The key is to have a strategy with metrics and outcomes. This data should inform the type of marketing you do and the timing. A marketing plan should accompany your annual strategic and operational plans.