Strategic Planning

examples of the changing healthcare landscape that prompts need for strategic planning

declining reimbursement rates, shift to value-based care, rise of large corporate chains, direct access marketing requirements

aspiration future state→ where are we going

vision

Organization’s core purpose→ why do we exist

mission

guiding principles→ how do we behave

values

occurs when the agent (manager/clinician) creates a goal that conflicts w/ the principal (owner/orginization)

agency theory→ principal-agent proplem

key concepts of resource based view (RBV)

Internal focus→ competitive advantage comes from internal resources that are VRIN (valuable, rare, inimitable, non-substitutable)

What is stakeholder theory?

Organizations must create value for all stakeholders, not just shareholders/owners. Ignoring one group puts the system at risk

what components make up the PT ecosystem?

patients, employees, referral sources, payers

what is resource dependence theory?

Organizations are not self-sufficient they rely on the external environment for resources→ risk of over dependence on a single source that creates vulnerability

Strategic move according to resource dependence theory

diversification

what is isomorphism?

“copy-catting”→ organizations adopt practices not because they are efficient but to gain legitimacy and look like a real organization

examples of coercive isomorphism

laws/regs (HIPAA, medicare)

examples of normative isomorphism

professional standards (APTA guidelines)

examples of mimetic isomorphism

copying successful competitors

steps of the planning cycle

analyze→ formulate→ implement→ evaluate

Elements of a PESTLE macro scan

political, economic, social, technological, legal, environmental

porters five forces of industry scan

rivalry, new entrants, substitutes, buyer power, supplier power

components of internal analysis

strengths and weaknesses

components of external analysis

opportunities, threats

What is used for advances analysis of SWOT

TOWS analysis→ match each category

components of competitor analysis

direct competitors, indirect competitors, secret shopper, differentiation

difference between strategy and tactics

strategy is the “what”, tactics are the “how”

Porter’s generic strategies

cost leadership, differentiation, focus/niche→ must choose once of these paths to avoid being stuck in the middle

What is the red ocean?

competing in existing markets

What is the blue ocean strategy?

creating new market space where competition is irrelevant

steps in the blue ocean strategy process

get started→ understand where you are→ imagine where you could be→ find how to get there→ make the shift happen

What si the riskiest growth strategy and why?

diversification→ is a new service to new markets

growth strategies in the Ansoff matrix

market penetration, market development, product development, diversification

sell more of existing services to existing market

market penetration

sell existing services to new market

market development

Sell new services to existing market

product development

The size of the market that you can realistically capture

service obtainable market (SOM)

financial monitoring strategies

ROI, Pro Forma, Opportunity cost

conservative estimate for the amount of the population that will seek outpatient PT in a given year (used to determine TAM)

the 2% rule

why do 60-90% of strategic plans fail?

execution gap (lack of communication, day to day whirlwind takes over, no accountability
)

components of a balanced measurement scorecard

financial, customer, internal, learning

What are lagging indicators

the result/history, can’t be changed (ex: total revenue last month)

What are leading indicators

predictive measures that are influenceable (ex: # of new evals scheduled next week)

what does ADKAR stand for?

awareness, desire, knowledge, ability, reinforcement

most often skipped steps in knotters 8 steps for change

urgency (step 1) and short term wins (step 6) → takeaway that people need heat to move and a quick victory to keep going

knotters 8 steps for change

create urgency→ form a coalition→ create vision→ communicate vision→ remove obstacles→create short-term wins→ build on change→ anchor in culture

What theory is integral to a start up company?

resource dependency theory (RDT)

What theory is integral to a mature company?

agency theory and resource based view (RBV)