Strategic Planning and Management Flashcards
The strategic planning process is used by business managers to answer what three basic questions?
- Where are we now?
- Where are we going?
- How will we get there?
What are the 7 core elements of a strategic plan?
- Mission Statement
- Vision Statement
- Strategic Goals
- Strategic Objectives
- Tactical Action Plans or Operational Plans
- Implementation Planning Schedule
- Outcome Measures
Explain the difference between strategic thinking, management, and planning
- Strategic thinking addresses the questions of what we should be doing and why we should be doing it
- Strategic management is a management philosophy that emphasizes thinking in terms of strategies
- Strategic planning addresses the questions of how and when we should take action
What are the 8 values of a strategic plan?
- It communicates where and how the organization is going to fulfill its mission to internal and external audiences.
- It aligns efforts at all levels of the business.
- It can motivate employees to contribute to the business’ success.
- Focuses thinking
- Prioritizes efforts
- Aligns efforts and goals
- Scans external environment
Define mission statement
the “purpose” of the business
Define value statement
What motivates a business and the behaviors it promotes in its employees
Define vision statement
the ideal future state of the business
Define strategic goals
the ways to get from a current state to an ideal state
Define strategic objectives
the pans that will actually move the business towards the strategic goals
Define tactical action plan
Timelines for achievement with measurable outcomes
What are 4 characteristics of the tactical action plan that are required?
- specific
- has a implementation schedule
- responsibilities have been assigned
- it produces measureable outcomes
What is the implementation of planning schedule?
It breaks up the annual plan into smaller plans with meeting schedule
What can be used to share and report outcome measures?
a balanced score card
What are the 2 strategic planning models?
- leadership style based models
- scope and complexity based models
Leadership style
Commander model (top management prescribes)
Leadership style
Change model
Leadership style
Collaborative model
Leadership style
Cultural model
Leadership style
Crescive model (bottom up direction, top level responds)
Leadership style
GENERAL INFO
scope and complexity
GENERAL INFO
scope and complexity
Basic model (planning done by top management)
scope and complexity
Issue-based model
scope and complexity
Alignment model
scope and complexity
Scenario model
Describe the difference between a strategic and business plan
The strategic plan is more global and provides a general road map. Whereas the business plan, which is derived from the strategic plan, provides more specificity regarding how the business will be operated
A strategic plan is _______ whereas a business plan is ________.
qualitative
quantitative
What are the 3 key elements of the business plan?
- Marketing plan
- Operations plan
- Financial plan
What does the marketing plan consist of?
customer preferences, growth trends, size, etc.
What does the operational plan consist of?
building Needs, business capacity, tech requirements, infrastructure needs, etc.
What does the financial plan consist of?
MONEY (capital expenses, revenue, opportunity cost, etc.)
When starting business what are the first 3 steps one should take?
1) Solidify mission statement
2) Formulate vision statement
3) Determine the disparity between where the business is now and where it wants to be (referred to as a gap analysis)
What are 2 tools that can be used to determine how much of what information is needed in order for a business to succeed?
PEST analysis
SWOT analysis
In a gap analysis there are 2 types of factors what are they?
external and internal
Why is it important to examine external factors before internal when starting a business?
Managers need to learn what is out there that may help or hurt their business before they can determine the availability and adequacy of their resources to do something about their findings.
- What is the economy doing?
- How much competition is out there?
- What kind of opportunities exist?
What are the 4 factors that when examined together are considered a SWOT analysis?
2 internal and 2 external
External factors seen as opportunities and threats
Internal factors seen as strengths and weaknesses
When strengths are identified what do we do with them?
capitalize on them
When an opportunity is identified what do we do with them?
we invest in it
When a weakness is identified what do we do with them?
we shore them up
When a threat is identified what do we do with them?
we identify them
How are internal factors (strengths and weaknesses) determined?
- customer feedback
- employee input
How are internal factors (strengths and weaknesses) determined?
- secondary data that tells us something about our environment
- industry data
- competitive data
- customer feedback
Once a 2x2 SWOT analysis has been constructed what do we do?
Compile a list of ideas that are then made into goal statements
What aspects of the SWOT analysis should we compare and why?
Take our strengths and match them up with the opportunities – do we have a strength that will help us invest in an opportunity?
Match weaknesses with strengths – do we have a strength that can offset a weakness?
Match opportunities and threats – are there opportunities that can offset the threats?
In summary of the SWOT:
_____ are your resources for taking advantage of opportunities and dealing with threats
_____ are your shortcomings for dealing with threats and taking advantage of opportunities
Strengths
Weaknesses
What type of analysis is a subdivision of the SWOT analysis?
PEST analysis
What are 4 basic external environmental factors?
- Political (e.g., tax rate, price regulation)
- Economic (e.g., state of economy, interest rate)
- Social (e.g., market demographics, attitudes)
- Technological (e.g., new devises, infrastructure)
PEST
What type of analysis is used for a more in depth analysis of the external environment?
DEPT SPACES
- Demographic
- Economic
- Political
- Technology
- Stakeholder
- Perceptions
- Accountability
- Competition
- Ecology
- Social
Describe the demographic environment
This is the statistical characteristics of a group of people
What are examples of demographic items of interest to health service businesses
- Age group
- Education level
- Employment
- Health
- House location
- Median Income Levels
- social/cultural
- transportation
Describe the economic environment
This includes how consumers, providers of services, producers of goods, and government chose to use their limited financial resources
What are some examples of economic data of interest to PT businesses?
- Income
- Spending
- Supply and demand
- Employment and unemployment
- Interest rate (borrowing cost)
What are some examples of political data of interest to PT businesses?
- Payment for appropriate services
- Arbitrary annual cap on reimbursement
- Referral for profit (referrers employing PTs)
- Clients having direct access to PTs (no referral)
- Clinical competence for relicensing
What does the technology environment include?
- ideas
- equipment
- methods
- anything that enhances human capabilities
What are some examples of technology relevant to PT businesses?
- Computer-based products and services
- Evidence-supported interventions
- Consultant services
- Manufacturers’ websites
What is a stakeholder?
Those who want to influence decisions because they have something to gain or lose depending on the decision.
What are the 3 kinds of stakeholders?
- Internal: members of the organization (staff).
- Interface: part of the organization but also have a legal identity outside of the organization (contract PTs).
- External: outside the organization (accreditation agencies, competitors, consumers, etc.)
What does the term perceptions mean?
the understanding that stakeholders, potential stakeholders, and others have about an organization whose success they have a stake in
What are examples of important perceptions?
- What the organization is
- What it does
- What it should do
The essence of accountability is to answerable to someone else (___), in some way (___), for something that was said, done, or omitted (what), at some point in time (____).
who
how
what
when
List some potential sources for identifying PT competitors
- attorneys
- board members
- billing services
- brochures
- building permits
- construction worker
- interviewees
True or False
Competition always improves the value for the customers
False
There are 2 environmental areas to look at and they are competitors’ impact on what?
- Public health (e.g., disposal of waste matter)
- Their neighborhood’s natural and architectural environment (e.g., harmony, taste, quality)
I.E. We have to put up a nice clinic if we are going to compete in a high income area. We have to avoid putting our business in a location that isn’t appropriate for health care services.
