醫管策略管理 strategic management of health care organization week 6 (oct 24, 2006)
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醫管策略管理Strategic Management of
Health Care Organization
Week 6
(Oct 24, 2006)
Strategic ReviewReview the current mission, vision, goals and objectives of the health care organization. If these are explicit versus implicit, draft these as you think they would be given the current status of the health care organization.
Session 3The Nature of Strategic Management
Internal Assessment
Internal Assessment
Discuss the statement:
--”internal strengths and weaknesses only have
meaning when related to external opportunities
and threats”.What does it mean when it is said that health care
organization has a sustained competitive advantage?
SWOT Analysis
Internal
--strengths and weaknessesExternal
--opportunitiesWhat is the difference between objective and
subjective strengths and weaknesses?What is the difference between absolute and
relative strengths and weaknesses?
Phases of Internal Environment Analysis (Ⅰ)
Surveying: Identifying Potential Strengths and Weaknesses
--Organizational SubsystemsInspecting: Categorizing and Rating Strengths
and Weaknesses
--Resources, Competencies, Capabilities
Phases of Internal Environment Analysis (Ⅱ)
Assessing Value Added for Sustained Competitive Advantage
--Cost Drivers
--Uniqueness DriversCompetitive Advantage
--Resources, Competencies and capabilities
Organizational Subsystems (Ⅰ)
What are the subsystems an organization should monitor to assess its relative strengths and weaknesses?
Are any of these more or less important than others?
Organizational Culture --General Management Subsystem --Information Subsystem
Organizational Subsystems (Ⅱ)
Organizational Culture --General Management Subsystem * Administrative Subsystem * Marketing Subsystem * Clinical Subsystem * physical Facilities Subsystem * Financial Subsystem * Human Resources --Information subsystem
Subsystems Strengths and Weaknesses
Staff Information and intelligenceTechnical CapabilitiesSynergyKey: How the organization links or coordinates
the various subsystems
Categorizing and Rating Strengths and Weaknesses (Ⅰ)
Resource-based view of strategy: value, expensive-to-copy resources key to sustainable competitive advantage
Resources: the stocks of human and nonhuman an factors that are available for use in producing goods and services
--tangible and intangible
Categorizing and Rating Strengths and Weaknesses (Ⅱ)
Competency: knowledge and skills that may be a source of sustained competitive advantage
--competency is knowledge and skill based and therefore human
Categorizing and Rating Strengths and Weaknesses (Ⅲ)
Capabilities: a health care organization’s ability to deploy resources and competencies, in combination, to produce services and obtain competitive advantage
--perform basic functions better than competitors
--make dynamic change through learning, renewal,
and change over time
--develop strategic insights, recognize and arrange
resources and competencies to develop novel
strategies
Competencies and Capabilities
Threshold competencies
--Competencies minimally required knowledge
and skills necessary to compete in an area Distinctive competency
--Highly developed strength that can be crucial in sustaining competitive advantage
Capabilities as “collective learning” Architectural competencies
--Convert resources and threshold skills into strategic
assets
ASSIST (Assessment Internally for Strategy) Analysis (Ⅰ)
Step 1: Identify key strategic resources, competencies, and capabilities
Step 2: Each of the following questions should be answered about each resource, competency, or capability
--Value --Rareness --Imitability --organization --sustainability
ASSIST (Assessment Internally for Strategy) Analysis (Ⅱ)
Step 3: Assign a value between 1 and 5 for each of the questions
--Adequate (1): minimum required to be in this service --Attractive (2):greater than minimum but not string advantage --Potential (3): sufficient to attract attention, important strategy consideration --Competitive (4): represents a clear competitive advantage --distinctive (5): none of your competitors can duplicate
Competitive Advantage
Build and maintained by adding value to health care services
Value is added in one of two ways:
--1. Providing equal quality services at a lower
cost than competitors
--2. Providing higher quality services at the
same cost
Value Chain Analysis (Ⅰ)
What is a value chain analysis?What is the importance of this to strategic
management?What is the difference between primary and
support activities?
Value Chain Analysis (Ⅱ)
Value System: Supplier-Organization-Customer Value is indirectly measured by the amount
customers are willing to pay for the hospital’s services
Value chain consists of value activities (primary and support activities) and margin
Understanding the value chain allows for understanding and controlling primary cost drivers
Margin: difference between total value generated (revenues) and cost of accomplishing the value activities
Value Chain Analysis (Ⅲ)
Primary Value Activities
--Inbound Logistics
--Operations
--Outbound Logistics
--Marketing and Sales
--Service
Value Chain Analysis (Ⅳ)
Support Activities
--Procurement
--Technology development
--Human resources management
--Organizational infrastructure
Evaluating Competitive Advantage (Ⅰ)(Overcoming Limitations)
The essential character of new directions in strategic thinking is the acceptance of “ an aspiration that creates, by design, a chasm between ambitions and resources.”
“Stretch” is the single most important task of senior management
“Stretch” is accomplished through resource leveraging-systematically setting the most possible from available resources
Evaluating Competitive Advantage (Ⅱ)(Overcoming Limitations)
Leveraging: concentrating, accumulating, complementing, conserving, and recovering resources
Prioritizing goals and focusing on a few things, concentrating resources
Focusing on the right things: those that make the greatest impacts on the patients perceives values
Integration of knowledge of external environment with understanding of organizational resources, competencies, capabilities, and aspirations.