Business Planning Flashcards
Objectives
- Construct a vision and mission statement
- List practice values that are important to each student. Discuss how these are reflected in various practice strategies
- Compare types of strategic planning for new and established businesses
Mission
Specific goals and objectives of practice, INTERNALLY focused
Vision
Concise statement guided by core values that articulate how the practice will contribute to the community
-Externally facing
Core values
Ideas that reflect the company stakeholders and their approach to business
-not specific to type of business
Strategic plan
Road map
Articulating core values
- 3-5 short statements
- long-lasting and insulated from business trends
- Basic elements of how any company goes about doing their work
Articulating vision statement
- Efficient and inspirational reflection of overarching goals for the practice
- Describes OUTCOME, NOT DAILY work
- Serves to shape employee and customer expectations
- NOT A ROADMAP
- Consider as guiding principle
- One or two sentences and memorable
Practice Mission
- Developed out of stakeholder values for the practice
- Internal guideline for practice stake holders and employees
- Provides Objectives for daily life of the practice
- More PRESENT based than future oriented
Annual practice eval should
Should be quantitative and qualitative
-reevaluate all the statements to ensure they still reflect practice and goals
Strategic planning requires
- Situational analysis
- Formulation of strategies
- Implementation of strategies
- Evaluation of results
Situational analysis
Assessment of external and internal business environment
SWOT
External and Internal situational analysis Strengths Weaknesses Opportunities Threat analysis
Five force analysis
External situational analysis
- Threat of new entrants into market
- Threat of substitutes for your product
- Client buyer power
- Supplier power
- Intensity of rivals amongst existing practices
PEST analysis
External environment situational analysis
-Political/economic/sociocultural/technological factors that may impact the practice
Value Chain analysis
Internal Chain situational analysis
-Work of practice divided into primary and support activities and evaluated individually
Tools can be used as a
scorecard
Financial performance of practice/individual
can be benchmarked to external or historical data
Client/patient/employee feedback
Can be addressed and reassessed through quantitative/qualitative data
Formulation of a strategy
To address weaknesses, set goals, and identify key performance indicators
Strategy should approach problems from
- patient perspective
- client perspective
- employee perspective
- financial perspective
Goals can be set using SMART
Specific Measurable Attainable Relevant Time bound
Identifying Key Performance Indicators (KPI)
Measureable and should be compared on regular basis for each of four perspective
KPI includes following indicators
- Revenue figures
- Transaction totals
- Client retention and referrals
- Use of pain management or safety protocols for all patients
- Improved employee retention and performance evals
Implementation of strategic plan and eval results
- Engage all members of a practice
- Educating employees is a first step (share KPI and some measurable financial outcomes with employees)
- Sharing metrics and outcomes is a key part of engaging the team in making decisions
