HIM003/APT3:
STRATEGICALLY MANAGE A
HEALTH SERVICE
ORGANIZATION
All Learning Team Meetings, Training & Lectures
,Learning team meeting 1
Strategically manage a health service organisation, 02-11-2024
Resources
• Porter, M. E. (1996). What is strategy? Harvard Business Review (November-December)
• Burns, L.R., Bradley, E.H., Weiner B.J. (2012). The challenge of delivering value in Health
Care: Global and U.S. Perspectives. In; Shortell and Kaluzny’s Health Care Management:
Organization Design and Behavior. 6th ed. Clifton Park, NY: Delmar, 3-32.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 1: The Nature of Strategic
Management. In: The strategic management of health care organizations (8th edition). 1
– 36. John Wiley & sons.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 4 Internal Analysis and
Competitive Advantage. In: The strategic management of health care organizations (8th
edition). 121 - 162. John Wiley & sons.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 5 Directional Strategies. In:
The strategic management of health care organizations (8th edition). 163 – 204. John
Wiley & sons
Value (and how healthcare organizations can deliver it)
Foundation of strategy formulation:
- Values: expression of the ethics that guide actions. Values should constrain how the
mission and vision are accomplished.
- Mission: is (should be) the foundation of strategic direction in an organization.
- Vision: statement of what the organization wants to become. It focuses on the future.
Successful strategies require direction, resources, and institutionalized processes.
- Direction
o Value, mission, vision
o Strategic thinking
- Resources
- Institutionalized processes
o Assigning responsibilities
o Follow-through
o Proper implementation
Source: Burns, L.R., Bradley, E.H., Weiner B.J. (2012). The challenge of delivering value in
Health Care: Global and U.S. Perspectives. In; Shortell and Kaluzny’s Health Care
Management: Organization Design and Behavior. 6th ed. Clifton Park, NY: Delmar, 3-32.
Not available in library
Competitive advantage (and how healthcare organizations can obtain it)
Source: Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 4 Internal Analysis and
Competitive Advantage. In: The strategic management of health care organizations (8th
edition). 121 - 162. John Wiley & sons.
Competitive advantage is created inside the organization the organization through the
development of a unique bundle of resources, exclusive technology, access to the market, or
new product/service characteristics, that competitors “cannot or will not match”.
Differentiation is typically the basis for competitive advantage.
,Competitive advantage is derived from organizational strengths that are valuable to external
stakeholders, relatively rare among competitors, difficult to duplicate by competitors, and can
be sustained by the organization.
- These strengths are directed toward achieving a cost advantage or differentiating the
organization from its competitors.
Step 1: Review results of external analysis and
service area competitor analysis
- What should the organization do?
Step 2: Organize the internal analysis process
– using the value chain
- Internal analysis can be accomplished
by evaluating the strengths and
weaknesses of the functional areas such
as clinical operation, information
systems, marketing, clinical support,
human resources, financial
administration, and so on.
- Value: the perceived relationship
between satisfaction and price; it is not
based solely on price
- The organizational value chain is a
useful tool for identifying and assessing how health care organizations create value
through service delivery and organizational support activities
The value chain utilizes a systems perspective; value may be created in the service delivery
subsystem and by effective use of the support activities.
- Service delivery is the primary way organizations create value for the customer/patient
through pre-service, point-of-service, and after-service activities
- The three elements of service delivery incorporate the production or creation of the
service (product) of health care and include primarily operational processes and
marketing activities
- Organizational culture, organizational structure, and strategic resources are support
activities that may add value to service delivery by ensuring an inviting and supportive
atmosphere, and effective organization, and sufficient use of resources.
, Step 3: Identify organizational strengths and weaknesses
- An organizational strength is an attribute or characteristic (resource, competency,
capability) that the organization believes it possesses and utilizes successfully.
- A weakness is an attribute or characteristic (resource, competency, capability) that the
organization assesses that it needs to improve.
Resources include factors that are available for use in producing goods and services.
Competencies include intellectual and skills-based knowledge or know-how and may be a
powerful source of sustained competitive advantage.
A health care organization’s ability to muster, coordinate, and deploy resources and
competencies, usually in combination, to produce desired services is known as its capability.
Step 4: Determine competitive advantages and disadvantages
Step 5: Synthesize and determine the implications of the competitive advantages and
disadvantages
- Ask 4 questions
Mission, Vision, Values (and whether/how they matter for healthcare organizations)
- Values: expression of the ethics that guide actions. Values should constrain how the
mission and vision are accomplished.
- Mission: is (should be) the foundation of strategic direction in an organization.
- Vision: statement of what the organization wants to become. It focuses on the future.
Strategy (what it is / is not and how it relates to positioning and fit)
Source: Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 1: The Nature of
Strategic Management. In: The strategic management of health care organizations (8th
edition). 1 – 36. John Wiley & sons.
STRATEGICALLY MANAGE A
HEALTH SERVICE
ORGANIZATION
All Learning Team Meetings, Training & Lectures
,Learning team meeting 1
Strategically manage a health service organisation, 02-11-2024
Resources
• Porter, M. E. (1996). What is strategy? Harvard Business Review (November-December)
• Burns, L.R., Bradley, E.H., Weiner B.J. (2012). The challenge of delivering value in Health
Care: Global and U.S. Perspectives. In; Shortell and Kaluzny’s Health Care Management:
Organization Design and Behavior. 6th ed. Clifton Park, NY: Delmar, 3-32.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 1: The Nature of Strategic
Management. In: The strategic management of health care organizations (8th edition). 1
– 36. John Wiley & sons.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 4 Internal Analysis and
Competitive Advantage. In: The strategic management of health care organizations (8th
edition). 121 - 162. John Wiley & sons.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 5 Directional Strategies. In:
The strategic management of health care organizations (8th edition). 163 – 204. John
Wiley & sons
Value (and how healthcare organizations can deliver it)
Foundation of strategy formulation:
- Values: expression of the ethics that guide actions. Values should constrain how the
mission and vision are accomplished.
- Mission: is (should be) the foundation of strategic direction in an organization.
- Vision: statement of what the organization wants to become. It focuses on the future.
Successful strategies require direction, resources, and institutionalized processes.
- Direction
o Value, mission, vision
o Strategic thinking
- Resources
- Institutionalized processes
o Assigning responsibilities
o Follow-through
o Proper implementation
Source: Burns, L.R., Bradley, E.H., Weiner B.J. (2012). The challenge of delivering value in
Health Care: Global and U.S. Perspectives. In; Shortell and Kaluzny’s Health Care
Management: Organization Design and Behavior. 6th ed. Clifton Park, NY: Delmar, 3-32.
Not available in library
Competitive advantage (and how healthcare organizations can obtain it)
Source: Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 4 Internal Analysis and
Competitive Advantage. In: The strategic management of health care organizations (8th
edition). 121 - 162. John Wiley & sons.
Competitive advantage is created inside the organization the organization through the
development of a unique bundle of resources, exclusive technology, access to the market, or
new product/service characteristics, that competitors “cannot or will not match”.
Differentiation is typically the basis for competitive advantage.
,Competitive advantage is derived from organizational strengths that are valuable to external
stakeholders, relatively rare among competitors, difficult to duplicate by competitors, and can
be sustained by the organization.
- These strengths are directed toward achieving a cost advantage or differentiating the
organization from its competitors.
Step 1: Review results of external analysis and
service area competitor analysis
- What should the organization do?
Step 2: Organize the internal analysis process
– using the value chain
- Internal analysis can be accomplished
by evaluating the strengths and
weaknesses of the functional areas such
as clinical operation, information
systems, marketing, clinical support,
human resources, financial
administration, and so on.
- Value: the perceived relationship
between satisfaction and price; it is not
based solely on price
- The organizational value chain is a
useful tool for identifying and assessing how health care organizations create value
through service delivery and organizational support activities
The value chain utilizes a systems perspective; value may be created in the service delivery
subsystem and by effective use of the support activities.
- Service delivery is the primary way organizations create value for the customer/patient
through pre-service, point-of-service, and after-service activities
- The three elements of service delivery incorporate the production or creation of the
service (product) of health care and include primarily operational processes and
marketing activities
- Organizational culture, organizational structure, and strategic resources are support
activities that may add value to service delivery by ensuring an inviting and supportive
atmosphere, and effective organization, and sufficient use of resources.
, Step 3: Identify organizational strengths and weaknesses
- An organizational strength is an attribute or characteristic (resource, competency,
capability) that the organization believes it possesses and utilizes successfully.
- A weakness is an attribute or characteristic (resource, competency, capability) that the
organization assesses that it needs to improve.
Resources include factors that are available for use in producing goods and services.
Competencies include intellectual and skills-based knowledge or know-how and may be a
powerful source of sustained competitive advantage.
A health care organization’s ability to muster, coordinate, and deploy resources and
competencies, usually in combination, to produce desired services is known as its capability.
Step 4: Determine competitive advantages and disadvantages
Step 5: Synthesize and determine the implications of the competitive advantages and
disadvantages
- Ask 4 questions
Mission, Vision, Values (and whether/how they matter for healthcare organizations)
- Values: expression of the ethics that guide actions. Values should constrain how the
mission and vision are accomplished.
- Mission: is (should be) the foundation of strategic direction in an organization.
- Vision: statement of what the organization wants to become. It focuses on the future.
Strategy (what it is / is not and how it relates to positioning and fit)
Source: Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Chapter 1: The Nature of
Strategic Management. In: The strategic management of health care organizations (8th
edition). 1 – 36. John Wiley & sons.
