Strategists use the organizations Mission, Vision, Values and strategic goals as a guide before making key organizational decisions. Then using directional strategies, strategic leaders will focus on selecting few activities that will make the most progress toward accomplishing the mission and moving the organization towards a realization of its vision and strategic goals. The goal setting process will focus on a limited number of factors that are critical for the success of mission accomplishment. Through careful analysis of the organization’s environment strategists can identify five or six areas in which the organization must perform well to be successful.
Critical success factors for health care organizations could vary from one service …show more content…
Brown & Sons, Inc. has developed an example of critical success factors for healthcare services providers. The example includes five critical factors that determine important programs that organizations should implement to increase competitive advantage and become successful. The list of example includes: Ability to serve entire market; Strong information systems; Lowest cost structure; Ability to replicate services in other geographical markets; Ability to accept near-terms risk (Ginter, Duncan, Swayne, & Swayne, p. 190-191).
1) Ability to serve entire market: in today’s highly competitive market, healthcare providers are offering a variety of services in the same facility to create a competitive advantage. Many smaller practices are now integrating with larger healthcare systems and forming legal entities such as Accountable Care Organizations to diversify services, share the expenses and maximize reimbursements. An example of this service can be a primary care facility that have a specialist on staff, and a pharmacy where patients can get treatment and buy their medication all in the same …show more content…
However there are some experts that suggest copying the original service as closely as possible and then implementing it in another geographical market. Strategists have to take extra care to make sure that there is a need for that specific service in the local market and if it will be a compatible fit with the directional strategies of the organization. Just because the strategy was successful else where it might not necessarily be the right fit for another organization.
5) Ability to accept near-term risks: strategic leaders and managers have to focus on increasing the company’s ability to collect enough short-term assets to pay short-term liabilities as they come due. Because reimbursements are paid after services are provided, minus contractual discounts, managers have to double their efforts to collect accounts receivable and maintain liquidity and to have enough resources on hand to take advantage of new opportunities as they come. Leaders also have to be financial conservative and take all steps necessary to minimize expense and collect every
Critical success factors for health care organizations could vary from one service …show more content…
Brown & Sons, Inc. has developed an example of critical success factors for healthcare services providers. The example includes five critical factors that determine important programs that organizations should implement to increase competitive advantage and become successful. The list of example includes: Ability to serve entire market; Strong information systems; Lowest cost structure; Ability to replicate services in other geographical markets; Ability to accept near-terms risk (Ginter, Duncan, Swayne, & Swayne, p. 190-191).
1) Ability to serve entire market: in today’s highly competitive market, healthcare providers are offering a variety of services in the same facility to create a competitive advantage. Many smaller practices are now integrating with larger healthcare systems and forming legal entities such as Accountable Care Organizations to diversify services, share the expenses and maximize reimbursements. An example of this service can be a primary care facility that have a specialist on staff, and a pharmacy where patients can get treatment and buy their medication all in the same …show more content…
However there are some experts that suggest copying the original service as closely as possible and then implementing it in another geographical market. Strategists have to take extra care to make sure that there is a need for that specific service in the local market and if it will be a compatible fit with the directional strategies of the organization. Just because the strategy was successful else where it might not necessarily be the right fit for another organization.
5) Ability to accept near-term risks: strategic leaders and managers have to focus on increasing the company’s ability to collect enough short-term assets to pay short-term liabilities as they come due. Because reimbursements are paid after services are provided, minus contractual discounts, managers have to double their efforts to collect accounts receivable and maintain liquidity and to have enough resources on hand to take advantage of new opportunities as they come. Leaders also have to be financial conservative and take all steps necessary to minimize expense and collect every