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‡ Described the importance of an

organization¶s mission and philosophy
and the impact of these on the structure
and behavior of the organization.

‡ Define the purpose and identify the steps

in the strategic planning process.



 ‡ Be able to articulate the importance of
aligning the organization¶s strategic
vision both with the goals and values of
the communities served by the
organization.

‡ Have the basic understanding of

common organizational structures and a
framework for examining the purpose
and the advantages and the
disadvantages of each


 
 
 
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ãBudget development
ãImplementation
ãPerformance
ãBudget approval and
monitoring
ãEvaluation



 

ãExpression of the purpose or reason

for existence of the organization.
ãDeclaration of its primary driving force
or its vision.
A r



tells the fundamental purpose of the
organization. It defines the customer
and the critical processes. It informs
you of the desired level of performance



 "|

Desired or intended future state of an

organization or enterprise in terms of its
fundamental objective and/or strategic
direction.

‡A Ñ

 outlines what the

organization wants to be, or how it
wants the world in which it operates to
be. It concentrates on the future. It is a
source of inspiration. It provides clear
decision-making criteria.


 ! !

‡ Embedded in the mission statement.

‡ It is the principles and beliefs that direct
the organization¶s behavior.



 " 

‡ May be formally stated and explicit, or

may be implicit and part of the
organizational culture

‡ Its is always become part of the

organizational cultures.

‡ Norms , traditions



 |
  




‡ Sum total or outcome of the processes by

an organization.

‡ Provides unified vision and goals for the

organization

‡ Helps ensure that the needed resources

are available to carry out initiatives



 
|
  




‡ It is important that everyone has the same

idea or vision for where the organization is
headed.
‡ A good plan can help to ensure that the
needed resources are available to carry out
the initiatives that have been identified as
important to the unit
‡ A clear plan allows the manager to select
among seemingly equal alternatives



 | 

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‡A situational assessment requiring a broad

view of the organization¶s current
environment

‡ %
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ãAttempts to view trends and future issues and

needs that could impact the organization
‡ %



 

ã Seeks to inventory the organization¶s assets

and liabilities


 |'%
 

‡ Tool for conducting environmental

assessments

‡ Identifies both strengths and weaknesses in

the internal environment and opportunities
and threats in the external environment



 |( |

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Those things that you do well, the high

value or performance points

 
 
 :

ãOoyal customers
ãEfficient distribution channels
ãVery high quality products
ãExcellent financial condition


  
 

 :

ãMood leadership
ãStrategic insights
ãCustomer intelligence
ãSolid reputation
ãHigh skilled workforce
Often considered ³Core Competencies´
± Best leverage points for growth
without draining your resources



 ( )


Those things that prevent you from doing

what you really need to do
‡ Since it is internal, they are within your
control it includes:
‡ Bad leadership,
‡ Unskilled workforce,
‡ Insufficient resources,
‡ Poor product quality,
‡ Slow distribution and delivery channels,
‡ Outdated technologies,
‡ Oack of planning.


 ( 

 

Potential areas for growth and higher

performance
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 ± marketplace,
unhappy customers with competitor¶s,
better economic conditions, more open
trading policies,

ÚInternal opportunities should be

classified as Strength¶s
ÚTiming may be important for
capitalizing on opportunities


 '( '!


Challenges confronting the organization,

external in nature
‡ It can take a wide range ± bad press
coverage, shifts in consumer behavior,
substitute products, new regulations, . . .
‡ Useful to classify or assign probabilities
to threats
‡ More accurate in identifying threats, the
better position you are for dealing with
the ³sudden ripples´ of change


 | *

 
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‡ | )! 
± person, group, or

organization that has vested interest in
the program or project under review.

‡ | )! 
%
a systematic
consideration off all potential
stakeholders to ensure that the needs
of each of these stakeholders are
incorporated in the planning phase.



 !
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 |

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used when there is a large number of

stakeholders and there is a general idea
of options available.



 , 
 



A group of individuals selected because

of their common characteristics.

They respond to question about a topic in

which they are expected to have interest
or expertise.



 % 
-


Selected from various constituencies

affected by a proposed program.

They don¶t have formal authority over the

program, but it is instrumental in reviewing
the planned program and making
recommendations and suggestions.



 | .
 
 

 




Completed prior to strategic planning or
beginning any new project or program,
‡ Allow to identify similar programs, their
structures and organization, potential
problems and pitfalls success.
‡ To have an understanding of the
methods and strategies identified in the
literature.
‡ Searching of best practices and best
evidence of how to conduct a program.


 | /
  
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1 


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‡ It must be examined with an eye to the

purpose or mission of the organization.

‡ Sometimes organization gets into

trouble when they move too far afield of
their core mission,



 ‡ Each new project needs to be evaluated
on light of its congruence with the main
mission that has been identified.

‡ New projects should be in line with the

mission, Otherwise, there is a risk that
the new programs will drain energy from
the main mission.



 | 2
 


3 
  

‡ Once identified, they need to be

prioritized according to:

a.Strategic Importance
b.Resource required
c.Time and effort involved
d.Time line should be set.



 | 4
5  

) 
 

‡ Communicated to all involved

constituencies.
‡ -When planning to implement a new
information system to ensure that it
remains competitive in the market.
‡ If there has not been adequate thought
to communication across the
organization about the project, there is;
Oess chance of success
Mreatest risk of poor cooperation.


 6 
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 !

‡ Cost involved in the delivery of

service

‡ Resources- people
‡ Equipments
‡ Time


 '!! 

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7

‡ Ensure that the quality of care

‡ Caliber of the staff should not be
compromised



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- Income generated as compared to the

expenses needed to deliver the services
offered.
- Connection between operational planning
and allocation of resources.

‡ 
 9 Is determined by the

relationship of income to expenses,
profitability result when the income is
higher than the expenses.


'- 
 %
 
 - 

Accounts for the income and expenses

associated with day by day activity within
a department or organization.

A financial tool that outlines anticipated

revenue and expenses over a specific
period.



 %



A process which is an activity that

managers engage in to record and report
financial transaction and data, assist with
budget documentation.



  


 


is based on billable services and

expenses associated with the;

‡ Equipments
‡ Supplies
‡ Staffing
‡ Other indirect cost



  

7

‡ Number of patient¶s stay

‡ Number of hour spent for a procedure
‡ Types of procedure delivered to the
patient



 -  - 

Accounts for purchase of major new or

replacement equipment.

‡ Equipments is purchased when new

technology becomes available
‡ When older equipment needs to be
updated
‡ Mrowing maintenance of equipments
because of age-related factors.



   
!

‡ are based upon the equipment cost

and the life expectancy
(Also known as shelf life).

‡ How long the equipments is expected

to perform over time.



 

 
- 

‡ It is developed when renovation or

new structures are planned for
improvements of facilities and services
offered.
Menerally include;
‡ Oabor
‡ Materials
‡ Building permits
‡ Inspections
‡ Equipments needed


 -  

 

Before beginning of the budget year most

organization devote approximately
D 
to preparing and developing
its budget allocation.



 ,

  
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 5
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It identifies unique market

characteristics such as the following
‡ Age,
‡ Sex
‡ Race
‡ Income
‡ Behavior



    %
 

It probes into how the competition is

performing as compared to other
health care organization.

‡ Oocation
‡ New or existing services
‡ Technology
‡ Examines other hospitals or practices ,
strength and weaknesses



 : 
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7

‡ Implementation of new programs

‡ Hiring of specialty staff
‡ Purchasing new equipments.



   

 


Changes are influenced by several

governing bodies.
‡ Play a role in reimbursement by
ensuring states law are adhered to
through approval and accreditation.
‡ A government agency that ensure;
‡ Health care security for beneficiaries
‡ Administer Federal control
‡ Quality assurance
‡ Fraud and abuse prevention


 |
  


‡ That map out the direction for the

organization over several years.

‡ Clearly defined steps to meet the

goals



 ||

3 

‡ It is important to examine the

individual department thoroughly
‡ It is helpful because it provides
information related to the types of
service and the sites at which services
are offered like;
ãUsual treatment procedures
ãHours of operation
ãTypes of patient/customer groups.


 3 
 7

‡ New technology or treatment

‡ Patient education
‡ Special patient care environment
‡ Training of new service to be
implement to technical staff member



 : 


Past performance is used as a baseline of

experience and data to better understand
activity in a department or unit.
‡ It is used to assist in interpreting associated
expenses with staff productivity and unit
performance.
‡ Knowledge about historical volume
provides a perspective as to how a
department has grown or declined over
time.


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Is income generated through a variety of

means like;
‡ Billable patients services
‡ Oaboratory
‡ Drug therapy
‡ Physical therapy
‡ Surgical procedures
‡ In patient¶s units
‡ Investment
‡ Donation to the organization
‡ Third Party payer


 '!



‡ 
   : ! 



± another form of payment shouldered by
agencies who covers payment for room,
board, test and therapy during a
predetermined length of hospital stay.

‡    ! ! 



± Oike PHIOHEAOTH shoulder a portion of
amount to be paid by the patient.



 %5
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Expenses direct associated with the

patient, such as ;

Î Medical and surgical supplies

Î Medicine/drugs.



 -

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For items such as ;

Î Mas,
Î Electricity
Î Phone lines.
They are not directly related to patient
care



 ,&

Constant and not related to productivity

or volume such as;

Î Cost of building
Î Equipments depreciation,
Î Utilities
Î Administrative salaries.



 "
 

Fluctuate depending upon the;

Î Volume or Patients census

Î Types of care required.



 |  

Î Purchased in bulk and sold in

quantity.

Î Expenses of the items has to be

calculated and backed out of the bulk
figure to accurately depict the expense



 

Expense associated with;

Î Medical Care
Î Nursing Care.
Î It includes salaries and benefits it
accounts for 50% to 60% of operational
cost.



 | 


The amount of staff and types of staff

are often accounted for.



 8

    

it is also calculated in the budget

because there has to be a staff coverage
when nurses or other staff members are
not working. It includes
‡ Sick leave
‡ Vacation leave
‡ Holidays
‡ Continuous education/ Trainings



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 ‡ Once developed, Budget are
submitted to administration for review
and final approval.
‡ The approval process may take
several months as the unit budgets
are combined to determine the overall
budget for the health care
organization.
‡ Senior management often
representing finance and operations
makes the final decision regarding
acceptance of budget



 ‡ The purpose of monitoring is to ensure
that the revenue is generated consistent
with projected productivity and
standards.
‡ If volumes decreased and the expenses
increase then that¶s the time manager
needs to determine actions are
necessary to bring the cost down.
‡ The entire health care team is
responsible for ensuring that the
expenses are kept within the budgeted
amount and that the volume or census
is maintained.


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