Session #6: Strategic Planning BINGO!

Matt Anderson, J.D.

Saturday, July 13, 2019

10:50 – 11:50 a.m.

Lake Osakis

Matthew Anderson

Minnesota Hospital Association Senior Vice President of Policy and Chief Strategy Officer

Matt Anderson is senior vice president of policy and chief strategy

officer for the Minnesota Hospital Association. He previously served

as intellectual capital leader and principal for Mercer’s Government

Human Services Consulting sector. Before joining the hospital

association in 2006, he handled complex litigation and public policy

issues for the Minnesota Attorney General’s Office, the Hennepin

County Attorney’s Office, and Minnesota State Colleges and

Universities. Anderson is a graduate of St. John’s University and

received his law degree from the University of Minnesota.

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Place picture here

Strategic Planning BINGO!

Matthew L. Anderson, J.D.

Sr VP of Policy & Chief Strategy Officer

Minnesota Hospital Association

July 13, 2019

Challenges for boards to consider

All hospitals and health systems have similar

goals and challenges. Are they the same goals

and challenges?

Are resources and priorities for next three

years the same as for the next 25 years?

Is your situation different today than it was

5 years ago?

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B I N G O

High Quality

CareAdaptable Affordable

Patient

ExperienceGrowth

ValueCommunity

HealthConvenient

Employer of

ChoiceSustainable

Financial

Stewardship

Health and

Wellness

FREE

SPOT

Culture of

Excellence

Community

Partner

Personalized

Care

Patient

CenteredProactive Innovation Technology

Community

EngagementResponsive

Continuous

ImprovementLeadership

Employee

Engagement

Common strategic objectives(for good reasons)

High quality care

Community health

Employee engagement,

employer of choice

Financial sustainability, growth

Catch-all (e.g., innovation, technology)

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Today’s discussion

Matt’s biases and assumptions

Any strategic planning model will do

if any strategic plan will do

Tailoring tips

Matt’s biases and assumptions:Keep time horizon to 18-36 months

0-17 Months

18-36 Months

36-60 Months60-360 Months

Tactical;

Work Plan

Strategic

Long, long

Range

Planning

Facilities

Planning

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Matt’s biases and assumptions:Need to make decisions to make a plan

What are you committing to do?

• Not general “keep doing what we do now”

E.g., “continue engaging community partners”

Understand and articulate/agree upon

expected resource allocation necessary

• Reserves? From current budget? If so, what

additional resources are needed and where will

they come from?

• Don’t need complete budget

Matt’s biases and assumptions:Schmushing = more discussion

“Building orthopedics practice, expanding primary

and urgent care, and reducing average days of

accounts receivable are all about improving our

revenue, so let’s go with revenue improvement . . .”

Pause and ask

• Do we nee greater clarity of each idea or proposal?

• Are we reluctant to decide because

o We like them all and just don’t want to choose?

o We don’t want anyone to feel like their idea isn’t picked?

o We fear scrutiny for not valuing X?

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Matt’s biases and assumptions:Hardest question is what won’t we do?

New

initiatives

Necessary

changes

Core business

Some strategic planning models are better suited to certain situations

1. Consider and discuss your hospital or health

system’s environment and situation;

2. With consensus or directional insights, look

at different strategic planning models;

3. Select and tailor a model to YOUR situation;

and THEN

4. Begin planning process

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Strategic Environments

Adaptive Shaping

Classic VisionaryUn

pre

dic

tab

ilit

y

Changeable

Renewal

Adapted from Reeves, Martin, et al, Your Strategy Needs a Strategy (2015)

Low

High

Classic

We can predict it, but we can’t shape it

• Competition is known, stable

• Market position, advantages can be sustained

• Not a market with major disruptions

Most typical goal: BE BIG!

• Utilities

• Boeing

Planning model examples

• Five Forces

• Experience Curve

1. Analyze

2. Plan

3. Execute

4. Repeat

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Adaptive

We can’t predict it, and we can’t shape it

• Frequent market disruption

• Continuous experimentation + quickly seizing what works

• Serial success that outweighs multiple misses

Most typical goal: BE FAST!

• 3M

Planning model examples

• Scenario planning

• Temporary advantage

• Adaptive advantage

1. Test, demo

2. Select

3. Scale up

4. Repeat (fast)

We can predict it and we can shape it

• Can create or recreate the market, environment

• Typically entirely new product, service

Most typical goal: BE FIRST!

• iPhone

• New pharmaceuticals

Planning model examples

• Blue Ocean

• Innovator’s dilemma

• Scenario planning

1. Imagine it

2. 1st to build

3. Keep at it,

4. Keep at it

Visionary

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We can’t predict it, but we can shape it

• Opportunity to build, influence environment

• Regulations yet to be written, but coming

• Usually requires collaboration

Most typical goal: BE THE CONDUCTOR!

• ATMs

• Microsoft

Planning model examples

• Networks

• Platforms

• Scenario planning

1. Engage others

2. Orchestrate

3. Modify/adapt

Shaping

We’re on the ropes!

• Severely constrained resources

• Internal or external disruption

• “The way we’ve always done things” won’t work

Most typical goal: BE VIABLE!

• Chrysler

• American Express post 2008

Planning models

• Red Ocean

• Transformation

1. React

2. Cut costs

3. AND Grow

4. Pivot to new

strategy

Renewal

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No planning model is perfect

Models designed for commercial businesses;

health care is different in important ways:

• Mission, community focus and expectations

• Competitive environment

• Financing

• Workforce

• Non-profit or public structures

Ask before finalizing a plan

Can our plan/objectives be confused with

another organization?

• Use another organization’s name – would the plan

make sense?

What about plan/objectives is specific to our

community or situation?

• Will residents, patients and families see that the

plan is for them?

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Ask before finalizing a plan

Does plan/objectives address more than

activities you already do?

• Or does it chart path for doing them differently?

How will we know if we need to change

course?

• What assumptions or expectations is

plan/objectives premised on?

What are the board’s responsibilities or roles

for achieving plan/objectives?