Organizational Planning Chapter Notes

Organizational Planning

Chapter Overview

  • This chapter pertains to the themes and processes involved in organizational planning in the context of management.

Inspirational Quote

  • Quote: "By failing to prepare, you are preparing to fail." — Benjamin Franklin

Definition of Planning

  • Definition: Planning is the act of deciding in advance what to do, who will do it, and how, when, and where it will be done. It involves:

    • Choosing among alternatives.

    • Being critical to all other management functions as it precedes them.

  • Importance: Without planning, the management process fails, and organizational needs and objectives cannot be met.

  • Characteristics:

    • It is proactive and deliberate, aimed at reducing risks and uncertainty.

    • It encourages unity of goals and continuity of energy expenditures while driving towards the organization’s objectives.

Planning Requirements for Managers

  • Managers must identify:

    • Short-term Goals: Immediate objectives that guide actions.

    • Long-term Goals: Objectives that shape the future and provide overarching direction.

    • Quote: "A goal without a plan is just a dream." — Unknown author

Looking Into the Future

  • Long-term planners today struggle to see beyond 5 years due to factors such as:

    • Health-care reform

    • Rapidly changing technology

    • Increased government regulation of health care

    • Scientific advances

    • Lack of strong leadership

Long Range Planning Considerations

  • Must address rapidly changing dynamics, including:

    • External social, economic, and political forces

    • Envisioned impacts on the organization

    • Anticipated consolidations

    • Financial reimbursement expectations (Value vs. Volume)

    • Maximizing financial resources

    • Physician integration and increased liabilities

    • Rising costs of health care insurance/benefits

    • Legislation surrounding tools/practices (e.g., ICD-10)

    • Drug shortages and pharmaceutical costs

    • Integration of long-term care into health services continuum

    • Technology integration, such as Electronic Health Records (EHRs)

    • Quote from Marquis & Huston (2017): "It is far easier to build teams of experts than to build expert teams."

    • Advancements in robotic technology and biometrics (e.g., Smart cards, point-of-care testing, telehealth)

Educational Implications Due to COVID-19 Pandemic

  • Reference the SWOT analysis as examined in evidence 7.1 on page 165.

Proactive Planning

  • Described as a specific method that helps achieve organizational objectives and is characterized by:

    • Being purposeful and forward-thinking.

    • Maintaining adaptability as a key requirement.

    • Considers past, present, and future contexts to prevent reactive behaviors.

    • Anticipates changing needs and promotes growth.

  • Defined as dynamic, with adaptation as a critical component due to frequent environmental changes.

Types of Planning

Reactive Planning

  • Definition: This occurs after a problem exists, directing efforts to restore a more desirable state.

Inactivism

  • Focused on maintaining the status quo; it is conventional planning aimed at conformity.

Preactivism

  • A future-oriented approach utilizing technology to catalyze change.

Forecasting

  • Definition: Estimating how conditions will be in the future, which:

    • Utilizes input from others, sequences activities, and protects the organization against undesirable changes.

    • Involves analyzing clues, historical patterns, and projected statistics.

  • Risks of Poor Forecasting: Managers uninformed about the legal, political, economic, and social factors can make planning errors leading to adverse financial impacts and professional development.

Strategic Planning at the Organizational Level

  • Frequency: Typically conducted every 3-7 years; may occur more frequently in response to rapid changes.

  • Long-Range Planning: Any plans extending beyond six months, typically focus on aligning organizational capabilities with external opportunities.

  • Elements of Strategic Planning:

    • Examines the organization’s purpose, mission, philosophy, and goals within the external environment.

SWOT Analysis Framework

  • Strengths, Weaknesses, Opportunities, & Threats:

    • Guidelines for conducting SWOT analysis includes:

    • Be realistic about strengths and weaknesses.

    • Differentiate present states from future possibilities.

    • Specify objectives.

    • Compare against competitors.

    • Keep it brief and recognize its subjectivity.

Balanced Scorecard

  • Definition: An assessment tool using metrics to evaluate from four perspectives to achieve desired outcomes:

    • Financial

    • Customers

    • Internal business processes

    • Learning and growth.

  • Purpose: Ensures alignment of strategic activities with the overall plan, translating strategy into actionable objectives.

Steps in the Strategic Planning Process

  1. Clearly define the organization’s purpose.

  2. Establish realistic, mission-consistent goals and objectives.

  3. Identify and assess external constituencies and stakeholder views.

  4. Communicate goals and objectives clearly.

  5. Develop a sense of ownership around the plan.

  6. Develop strategies to reach the goals.

  7. Effectively use organizational resources.

  8. Establish bases for measuring progress.

  9. Provide informed mechanisms for change.

  10. Build consensus around the organizational direction.

Participation in Strategic Planning

  • Historically, top-level managers were primarily involved, but there is a growing recognition of including:

    • Input from all levels, particularly subordinates, to ensure successful implementation.

    • Annual strategic planning conferences incorporating all departmental levels are recommended.

The Planning Hierarchy

  • Elements Included:

    • Mission

    • Philosophy

    • Goals

    • Objectives

    • Policies

    • Procedures

    • Rules

Mission Statements

  • Definition: The mission statement serves as a planning document that reflects ongoing processes, not just a one-time activity.

Vision and Mission Statements

  • Vision Statements: Describe future organizational goals, providing a guiding ideal for the organization.

  • Mission Statements: Identify the organization's reasons for existence, address its constituency, ethics, principles, and standard practices, and drive organizational action.

Organizational Philosophy

  • Derives from the mission statement, establishing values and beliefs that guide actions.

  • Philosophy drives planning and can apply at various organizational levels, influencing nursing and service goals.

Interconnections in Philosophies

  • Philosophical congruence exists across organizational levels (e.g., departmental, nursing unit goals).

Working Philosophy in Departments

  • Evident in decisions, priorities, and accomplishments of departments, with unit-level managers playing crucial roles in articulating and implementing philosophy.

Societal Philosophies and Values Related to Health Care

  • Values: Guiding beliefs affecting policies, laws, and highlighting disparities in health care.

  • Example: The Affordable Care Act of 2010 aimed at improving access and affordability in health care.

Defining True Values

  • Criteria for True Values:

    1. Freely chosen after reflection.

    2. Prized and cherished.

    3. Consciously and consistently repeated.

    4. Positively affirmed and enacted.

  • Values failing to meet these criteria are considered value indicators.

Individual Philosophies and Confusion with Organizational Values

  • Conflict can occur between personal values and organizational philosophy, leading to job dissatisfaction.

  • Encourage potential employees to consider the organizational philosophy before joining to enhance understanding and alignment.

Goals versus Objectives

Goals

  • Define the organizational ends, which must be periodically reevaluated and prioritized. They are global and ambitious but realistic.

  • Types of goals:

    • Services rendered

    • Resource utilization

    • Innovations

    • Social responsibilities

Objectives

  • Should drive specific outcomes, thus being explicit, measurable, observable, and obtainable.

  • Must have:

    • Specific time frames

    • Behavioral terms

    • Objective evaluations

    • Emphasis on positive outcomes.

Relationship Between Goals & Objectives

  • Goals must be translated into specific objectives that command action, with goals being more global language than objectives.

  • Specific objectives ease understanding and execution among relevant parties, particularly important for nurse-managers.

Policies and Procedures

Policies

  • Plans converted to statements guiding decision-making.

  • Address behavior toward the mission, guiding recurring situations with flexibility maintained for discretion in execution.

    • Types of Policies:

      • Implied Policies: Unwritten, followed over time.

      • Expressed Policies: Documented verbally or written.

Procedures

  • Establish customary methods for completing tasks.

  • Procedures outline the implementation of policies and are typically found within organizational manuals.

  • Managers are responsible for maintaining and updating these procedures to ensure they remain relevant and effective.

Rules

  • Define mandatory actions or prohibitions, allowing for little discretion in adherence.

  • Rules should be limited in number and enforced to maintain organizational morale.

Overcoming Barriers to Planning

  • Key Points for Managers:

    • Goals must align with higher organizational levels.

    • Plans should be flexible to accommodate adjustments due to unexpected circumstances.

    • Include affected individuals and units in the planning process.

    • Plans need to be specific, simple, and realistic.

    • Managers must recognize the right timing for planning.

    • Effective plans incorporate checkpoints for mid-process evaluations and concluding assessments.

Planning Roles and Integration

Leadership in Planning

  • Integral to multiple areas including health-care economics, human resource management, and political issues.

  • Requires:

    • Environmental sensitivity.

    • Accurate appraisal of social and political climates.

    • Willingness to take calculated risks.

Leader-Manager Expertise

  • Essential for:

    • Developing, implementing, and evaluating various planning types within the hierarchy.

    • Successful articulation of goals and objectives, which is key to planning success.

    • Lack of managerial or leadership skills undermines planning effectiveness.

Final Inspirational Quote

  • Quote: "The secret of success is to do the common things uncommonly well." — John D. Rockefeller

Questions

  1. Question: Advocating against implementing a new hospital computer system is an example of which type of planning?

    • Options: Reactivist, Inactivist, Preactivist, Proactivist

    • Answer: B. Inactivist

    • Rationale: Inactivists prefer to maintain the status quo and avoid risks with new methods.

  2. Question: Does the planning process differ based on the period involved?

    • Options: True, False

    • Answer: B. False

    • Rationale: The planning process is fundamentally consistent regardless of the time frame.

  3. Question: What factors can contribute to planning failure?

    • Options: Not enough alternatives, Low motivation levels, False assumptions, Lack of sound strategies, All of the above

    • Answer: E. All of the above

    • Rationale: Each of these issues can critically undermine planning success.

  4. Question: A balanced scorecard is used to (Select all that apply):

    • Gain clients, Collect data, Develop metrics, Analyze data

    • Answer: A. Collect data, C. Develop metrics, D. Analyze data

    • Rationale: The balanced scorecard is a tool for data management and analysis, not client acquisition.