Strategic Planning and management benefits
Before I can start to list how strategic planning and management can benefit a government-based or non-profit health care organization, Iâ€™d like to first define what these two items are. Strategic planning is what government-based and non-profit health care organizations use to enable their leaders and workers to implement and realize the ultimate vision of serving the health care needs of their health care cause, the community and even the United States (Tebrugge, 2014). Likewise, strategic management is a process that is also used by government-based and non-profit health care organizations to analyze their industryâ€™s current practices and then develops and puts into practice a strategy for its future realization. Strategic management has a competitive quality to offer even those in the non-profit / government-based health care industry to create long-term soundness for the industry. Despite the confines and regulations that often strangle government-based and non-profit health care organizations strategic management is still needed to creates needed industry flexibility to move and respond to the current health care law changes with confidence and authority (Snow, 2014).
The U.S. healthcare system is one that is complex, and difficult to understand. Many of individuals trying to access Non-for-profit childrenâ€™s hospitals are confused about the factors involved in what appears to limit their access or why they continue to receive uncoordinated care. These ever changing requirements and newfound limitations found in government-based health care leave many citizens dumbfounded and disillusioned. Meanwhile those working in government-based healthcare frequently also see the industry as overly complex and equally confusing, because of ongoing rapid changes in our health care environment that generates a sense of chaos and even turmoil within the organization. The complexity and confusion â€” both outside and within the industry â€” are sure to increase as a result of the Patient Protection and Affordable Care Act of 2010 and related reforms to health care. Therefore, strategic planning and management plays an increasingly vital role in the government-based / non-profitâ€™s ability to proactively and creatively plan for and then respond to the multifaceted, dynamic trends and changes that are taking place in the industryâ€™s external environment (Reed, 2013). Therefore, there are multiple tangible, and even nontangible benefits to strategic planning and management in the government-based health nonprofit healthcare industry.
One of the benefits of strategic planning in the nonprofit / government-based health care industry is that is has a great way of generating much needed clarity out chaos found in their current environment. A strategic plan is able to communicate significant strategic issues, as well as provide a clear path to the organization’s realization of its vision for whatâ€™s to come, as well as a directions to get there. This helps provide nonprofit / government-based health care workers and even stakeholders the confidence needed to make a financial, psychological, and even emotional commitments to the organization that has a strategic plan in place. Whenever employees are involved in commitment that extends both to their day-to-day duties as well as their overall career, strategic planning often results in an increase in productivity as well as an increased level of employee engagement in the in the organization. Finally, this clarity from chaos through strategic planning benefits patients by the nonprofit / government-based healthcare industry demonstrating that they are worthy of patients trusting them with their healthcare needs (Reed, 2013).
One of the advantages of strategic management in the government-based health / nonprofit healthcare industry is that it provides a competitive advantage. The primary goal of strategic management even in strategic management in the government-based health / nonprofit healthcare industry is the realization of competitive advantage. Competition always acknowledges the fact the industry in question has more than one provider for the services or products in demand. There are many factors that government-based health / nonprofit healthcare facilities can address to increase their competitiveness such as customer service, government-based relations, method of product delivery, type of service or product, social networking, marketing and even caliber and dedication of workers who interact with the patients and families as well as the quality of the product. If for example, The Cancer Treatment Center were to use strategic management to create a competitive advantage, their organizationâ€™s services can then stand out and thereby attract donors to support its work. Therefore, creating the competitive advantage through strategic management benefits not only the organization but the community it serves because it now has backers to provide funds for state-of-the art technology in an ever changing healthcare industry (Snow, 2014).
Operating in vision, not circumstances
Another advantage of strategic planning is that it allows government-based and nonprofit health care organizations to operate by responding to their vision and not react the current circumstances. When a strategic plan translates into a developed vision that is shared through a participatory process, the organization in experiences a powerful impact on all levels of the organization. Employees and leaders alike are always inspired by a thoughtful, well-crafted vision that clearly describes a compelling future. Once the vision is embraced through strategic planning, employees and organizers will be ready to endure harsh circumstances as long as the organization’s vision is being realized (Reed, 2013).
Another advantage to strategic management, even in the nonprofit / government-based healthcare industry it can offer is that their success can actually be measured by their financial solvency. When a nonprofit or government-based healthcare organization uses strategic management to increase their competitiveness this often translates the organizationâ€™s bottom line. The financial benefits that come from strategic management are founded in various areas such as: providing cost efficient yet helpful customer service, focused yet innovative marketing campaigns, and even building their brand recognition. Therefore, using strategic management to generate both funding and customer satisfaction while decreasing spending creates a much needed financial advantage (Snow, 2014).
A third benefit to strategic planning in the nonprofit / government-based healthcare industry is that it motivates employees to become engaged in the day-to-day operations and the overall vision of the organization at hand. This is because employee engagement impacts everything from quality and patient safety to problem-solving as well as financial performance. The extent of employee engagement in the government-based / nonprofit organization is a direct reflection of the employeeâ€™s attitudes and beliefs and then manifest by the level of effort work teams and individual workers alike give and enthusiastically heightened support (Reed, 2013).
A third advantage of strategic management is that offers nonprofit and government-based industries an organizational advantage. This means that the use strategic management to can result in creating and maintaining a happy, motivated workforce. One of the most valuable resources in strategic management is the human resource. Strategic management offers tools to manage an organizationâ€™s human resource and generate a healthy and positive work culture that in turn enables the organization to thrive. Happy employees result in a happy work environment, which in turn results in healthy, well treated patients and their families. Therefore, using strategic management creates a better workplace in the organization which in turn creates a better workforce in the organization (Snow, 2014).
A fourth benefit to strategic planning is that it provides transformational leadership to a nonpublic or government-based agency. This style of leadership transforms an organization and inspires its worker to deliver a better performance. Transformational leaders use well-documented techniques in current organizational behavior literature. Furthermore, transformational leaders are experienced in communicating their organization’s vision, the steps it takes to achieve them and how each employee plays a significant role in reaching the vision. Therefore, transformational leaders in strategic planning have proven effective in getting workers and leaders to better understand and believe in their abilities as a group and on their own to obtain increased levels of organizational performance (Reed, 2013).
A fifth and final advantage of strategic planning in the government-based / nonprofit industry is that it offer organizational collaboration. Cooperation, and team unity are vital to the delivery of high quality patient care. The use of strategic planning offers both great individual service as well as improved organizational performance. Leaders and workers alike must operate from the same “playbook” and travel in the same direction. Therefore, an effective strategic plan can be a significant tool that generates organizational collaboration (Reed, 2013).
Based on what Iâ€™ve read, I am impressed with the wealth of information that supports the implementation of strategic management and strategic planning even in a government-based or nonprofit facility. They each can benefit by enjoying an increase in profits as well as an increase in employee morale. Furthermore, strategic management and strategic planning offers government based and nonprofit facilities transformational leadership and a competitive advantage. Finally, yet not exhaustively, government-based and nonprofit facilities benefit from strategic management and strategic planning by enjoying organizational collaboration and an overall organizational advantage. Therefore, I believe all government-based and nonprofit facilities would do well to implement strategic management and strategic planning in their organizations.
Reed, S. B. (2013, June 5). 5 Intangible Benefits Of Hospital Strategic Planning. Retrieved June 15, 2014, from Becker’s Hospital Review:
Snow, S. (2014). Advantages of Strategic Managment. Retrieved June 15, 2014, from eHow.com:
Tebrugge, K. (2014). Strategic Planning for Public & Non Profit Organizations. Retrieved June 15, 2014, from eHow.com: