PERFORMANCE

IMPROVEMENT &
MANAGEMENT OF RESOURCES
IN HSC
WHAT IS AN ORGANIZATION?

A group of people united by a common purpose. It is a relationship interconnected with

activities that can yield results. Every organization tend to have a goal and usually would
work towards achieving the goals.
AIMS & OBJECTIVES OF AN ORGANIZATION
(NHS)
Aim-This is a bold statement of intent that peeps into a futuristic ambition
 To provide and improve health care quality for all.

Objectives-How can the aim be achieved

 Improve health care via
 The use of strategic management of operations
 Increase the levels of budgeting and planning
 Adoption of equality and diversity principle to

achieve inclusion
VISION & MISSION OF ORGANIZATION

• Vision is related to the aim

• Mission is related to the objectives.
ORGANIZATIONAL MAKE UP

structure

Leadership

system people
WHAT IS ORGANIZATIONAL STRUCTURE?

This is the type of platform that determines operational arrangement and coordination of
work. There are different types of structure.
1. Mechanistic – Very sequential & Lacks flexibility in approach & centralization is high
2. Flat –Not hierarchical and Accommodates flexibility & decentralization is high.
3. Hybrid structure –A combination of the different structure.
ORGANIZATIONAL SYSTEM

Ways activities related to work and task are coordinated. It is important to say that
management of organizations take into account system operations and how activities flow.
More often the type of structure being operated would influence system of choice. Some
systems are transactional while others can be transformational. Systems are backed with
policies that drive them. Also note that transactional system is rigid while transformation is
flexible .
THE PEOPLE

Organization is made up people from different background, skills and knowledge .There is
need to manage the skills employees bring into work to achieve organizational goal. People
skills need to be enhanced as well, to meet future needs of the organization and help them
have competitive edge and sustain own market share.
MANAGING HUMAN RESOURCES-CLASS
ACTIVITY
Suggest three (3) things that you think can motivate employees at work
1.Effective communication
2.Positive work culture & environment
3.Encouraging employee initiates & creativity
4.Staff development
5.Sustainable wages
6.Availibility of work tool & resources
7.Use of incentives
8.Quality leadership
TYPES OF LEADERSHIP

According to Lewin (1935) there three leadership styles namely:

 Autocratic-(leader takes absolute control, strict rules, believes in deadlines)
 Democratic (people oriented, consultation before decision making)
 Lassie-faire (DIY flexibility ,little or no supervision)
TYPES OF ORGANIZATION

Non-
Public Private
Profit
CLASS ACTIVITY

Name 2 organizations under the following:

1.Public Sector
2 Private Sector
3.Non-Profit Sector
ORGANIZATIONS UNDER THE PUBLIC SECTOR

• NHS
• Local & National councils
• Schools & Libraries
• Fire service
• Law enforcement Agencies
• Customs & Exercise
HMR .These are organization owned by the government whose primary responsibility is to support
the well being of the people. They are NOT cut out for profit.
ORGANIZATIONS IN THE PRIVATE SECTOR

• Glasgo Smith & Kline

• Tesco
• Addidas
• Private Hospitals
• Sainsbury
• Waitrose
• M& S

These are organizations that compete for market share who aim is to make profit
NON-PROFIT ORGANIZATIONS

• Macmillan Cancer research

• Age concern UK
• WHO
• Amnesty International

These are organizations funded by external agencies or individuals based on monetary

contributions or other means of finance.
FUNCTIONS OF AN ORGANIZATION

operations

Customer
marketing
service

Human Organizational IT
resources Functions

Logistics Finance

warehousing
OPERATIONS

This refers to the activities an organization carries out on day to day basis. Operations may
include processes and procedures engaged on routine basis. This include the manufacturing
processes for organization in manufacturing of goods and products and also levels of
activities for organizations in services.
MARKETING

Products and services produced by an organization has to be sold to users to be able to remain
in business. Successful marketing plan may consider the adoption of the following elements.
Product
Price
Place
People
promotion
INFORMATION TECHNOLOGY

In the modern world organizations depend on the information technology to drive the
processes of performance. For example the online marketing is becoming so popular
especially with the social distancing associated with the current dispensation.
FINANCE

This has to do with planning and budgeting. Organizations need to provide finance to
different department so that they can meet their roles and responsibilities. Budgeting is
usually carried out annually and reports are also expected at the end of every trading year.
WAREHOUSING

Manufactured goods may not be sent out directly to the consumers all at a time.
Manufacturing organizations usually make arrangements to stock pile goods in the
warehouse to be released time after time. This is also a strategy to manage demand and
supply.
LOGISTICS

This has to with transportation of goods from one place usually from the warehouse to the
market places. This is a very vital function that helps facilitate marketing and help
organization retain its market share.
HUMAN RESOURCES

This has to do with people working for an organization. The policies related to human
resources can help determine the level of functionality. There is need for efficient
management of skills and knowledge employees bring into the organization to help
management meet the aims and objective of the organization. This would also transcend to
effectiveness.
CUSTOMER SERVICES

This is related to sales. A direct relationship with an organization is quite key to meeting the
vision and mission. Through customer service department consumers tend to have a
trusting relationship via effective communication. Customer satisfaction can be enhanced
via the user of customer service desks providing answers to different queries.
LESSON SUMMARY
PLANNING & CONTROL

What is Planning?
Why is it important ?
What do managers plan for ?-meeting strategies to actualize goals(Vision & Mission)
Types of planning –Short, Mid & long time plan
What is strategic planning ?
What is control? –steps put in place to sustain different types of plans( system formulation,
use of policies and procedures).
PLANNING

This can be defined as a process of thinking about activities that are required to achieve a
goal. Planning is a primary management function to meet future needs. It involves the
creation and maintenance of a plan. It be regarded as an act or process of carrying out
activities towards achieving a goal.
WHY PLANNING IS IMPORTANT

• It helps the organization to identify needs and work towards achieving them.
• Planning sets the business ball rolling.
• It is a proactive way of managing a business
• It can help identify business risks and facilitate the mitigation process.
• It is the primary route to meeting organizational vision and mission
• It is the most important element in strategic management.
 WHAT DO MANAGERS PLAN FOR:

• Meeting strategies to actualize goals via vision and mission aka Aims and Objectives.

What is a business vision? This is a bold statement of where an organization intend to be. This is usually a very tall dream. Every
organization wants to stretch itself to conquer an existing market. It can attested to as long term plan to be achieved .A vision comes
up with believe that no matter the barriers or risks the realization is possible. To achieve this organization sets up its mission statement.
Directors and managers must be ambitious to go on with organizational vision. This is the reason that in times of recruitment
organization look out for employees that can align with the company vision and mission.

An example of a vision statement- To be the largest labor supplier in health care Uk in the next ten years.

What is a business mission. This is the methods or ways to be adopted to be able to achieve the ambitious dream of the vision
statement. These are strategies the organization intend to use in achieving the vision.

Mission statements .

Providing professionals that are highly skilled and sensitive to cultural values attached to caring

Adopting the principle of equality and diversity to achieve inclusion

Using a wide range of information technology towards service provision especially bridging the gap of communication.

Through the use of modern care provision such telecare and assistive technology
TYPE OF PLANNING -PERIOD

• Short term : 1-3years

• Mid term :3-7years
• Long term: 10 years upwards
What determines the planning period has to do with type of task to be accomplished and the extent to which such
accomplishment can help drive the realization of organizational objectives. For example -Short term- recruiting low
level staff on temporary contract could be to meet the immediate demand from users of service for a particular
service.
Planning for midterm can result to buying of some equipment to increase production of goods and services to meet
demand and supply.
Long term may see a more enduring change in the system towards improving organizational culture.
WHAT IS STRATEGIC PLANNING?

This is a tool for guiding day to day decision and evaluating progress and changing approaches. It provides a
sense of direction and outline measurable goals. It helps to record vision, mission and long term goals and
action plan used to reach organizational objectives.
Review Vision and mission –Aims & Objectives
Identify priorities
Allocate resources
Monitor performance
Encourage performance
Make changes and sustain change management.
WHAT IS THE BEST WAY OF MONITORING
PERFORMANCE?
Review work on regular basis
Use of observation
Use self monitoring tool
Use of performance appraisal
Spot checking on milestone
Goal setting
Engage in activity tracking
Service user survey
STRATEGIC PLANNING MODELS

• Corporate planning model

• Business Planning model
• Functional Planning model
CORPORATE STRATEGIC PLANNING MODEL

Corporate Strategic Planning is a company wide approach at the business unit and
corporate level for developing strategic plans to achieve a longer-term vision. The
process includes defining the corporate strategic goals and intentions at the top
and cascading them through each level of the organization. Many organizations
confuse the annual budgeting process with corporate planning. Corporate strategic
planning should come first and annual budgeting should be driven by the strategy,
not by prior year’s budget spend.
UNDERSTANDING CORPORATE PLANNING
MODEL
Corporate planning originates from board of directors who identifies the goals based on
organizational vision and mission .It is usually hierarchical and cascades to employees in a
downward sloppy movement.
This model is all inclusive as it embraces every employee commitment .It details the
employer and employee roles and responsibilities towards the achievement of specific goals.
It involves the use of different communication methods to meet task requirements and
deadlines.
It requires teamwork and effective group dynamics that aims at producing results.
WHY IS CORPORATE STRATEGY IMPORTANT?

A corporate strategy can focus every employee and resource in a company on the
same objectives, and it aims to use them all efficiently. It gives every employee a
set of guidelines they can use in their everyday work to move toward certain
targets, which promote the vision and mission of the company. Corporate level
planning can also improve efficiency within the organization and help identify
unseen bottlenecks or pain-points.
ADVANTAGE

The corporate strategy gives leaders and employees ideas to use for the
improvement of distinctive activities (processes and operations) that create a
competitive advantage. The strategy can also help executives to protect the
company from entering into costly or irrelevant opportunities.
STEPS INVOLVED IN STRATEGIC PLANNING

Corporate strategic planning begins by clarifying the vision and mission of the
organization and the space the business chooses to compete in. Clarifying the
organizations position will help you develop and effective strategic planning
framework.
WHAT ARE THE TYPES OF CORPORATE
STRATEGY?
When looking at the types of corporate strategy, it is important to consider a
positioning grid that looks at the source of competitive advantage as well as the
space where the business competes (markets, geography, size, etc).
STRATEGY 1: LOW COST STRATEGY

This type of strategy is one in which your source of advantage is simply competing on cost and
being the low-cost provider. With this strategy an organization must exploit all sources of cost
advantage. This includes things such as:
• Volume
• Economies of scale
• Cost of inputs
• Operations excellence to help drive down costs
• This type of strategy requires an organization to compete more broadly (markets, geography,
size)
ADVANTAGE OF LOW COST

• Increase in profit margin

• Business opportunities are enhanced
• It creates employment
• Varieties and options for customers
SHORTFALLS WITH LOW STRATEGY

• Increasing overhead cost

• Quality of product may be affected.
• May not survive in areas of low density population (small market size)
STRATEGY 2: DIFFERENTIATED STRATEGY

In a Differentiated Strategy, the focus is on competing by being unique or distinctively different in your
industry. A differentiated strategy provides a product or service in more of a niche market where customers
see the importance of offerings and are willing to pay a premium price. While this strategy still has a broad
focus on how and where it competes (markets, geography, size), it serves its customers in a differentiated
way. Differentiation can include factors such as:
• Technical superiority
• Customization
• Innovation
• Products or services that are difficult to copy
• Customer Service
ADVANTAGE OF DIFFERENTIATED STRATEGY

• Uniqueness of product is upheld

• Organizational image and reputation are enhanced.
• Profit margin is enhanced
• Market share is likely to increase with time via consistency of organizational culture.
SHORT FALLS OF DIFFERENTIATED STRATEGY

• Product price is usually higher than other competitors which may affect profit.
• Product market is discriminatory and may affect customer loyalty.
• May find it difficult with consumer price index in communities of low income earners.
STRATEGY 3: SEGMENTED STRATEGY

A segmented strategy is one in which you have clearly differentiated yourself from
the competition. The space in which you compete has a narrow focus. You serve a
distinct group of customers with specialized needs. In this space, there are few
product or service substitutes that can be offered and while you may not have the
volume of customers, profit margins tend to be higher because of the lack of
substitutes. and there are few substitutes for your offerings.
It is important for every organization to understand where on a strategic position
grid it currently sits and where it may want to be.
ADVANTAGE OF SEGMENTED STRATEGY

• Product/service uniqueness is a big advantage

• Professional proficiency helps to command customer loyalty
• With increasing volume due to product /service uniqueness, profit is on the increase .
SHORT FALLS OF SEGMENTED STRATEGY

• Limited choice
• customer satisfaction may be affected
• Knowledge and awareness of the bigger market size and volume may be threatened.
This can boomerang in the future and may lead to a costly re-strategic options.
BUSINESS STRATEGIC PLANNING MODEL

• A foundational business strategy is a carefully chosen response to a business environment. It takes the form
of a set of decisions about the direction the business should go.
• Think of strategy as the plan you make before you go on a drive. In this analogy, the business environment
would be the weather conditions and your strategy would be the decision you need to make between having a
night out in the city, going off-roading in the mountains, or going on another type of trip.
• Strategy includes all the choices you make about where you’re going, what you’ll do when you get there, what
you need to take with you, how you’ll prepare for the conditions you’ll meet along the way, and which vehicle
you will take. The choices you make are designed to accomplish certain goals.
• Similarly, before a company is started, founders carefully assess the current business environment (the
markets, customers, competition, and so on) and try to forecast the future. They choose a mission and goals.
Then, they create a plan for how the company will work toward those goals and fulfill that mission.
BUSINESS PLANNING MODEL CONTED

• This process creates the overarching strategy at the core of a company, which defines why the company exists. A
business strategy might include the following:
• A focus on customers who are eager for a solution
• A value proposition for those customers
• An inventory of the resources and capabilities needed to deliver that value
• An effective business model that will consistently deliver that value
• Another powerful part of an effective business strategy is contingency planning. Contingency plans are “if, then”
scenarios and might sound like, “If this competitor does this, we will do that,” “If the market shifts in this direction, we
will pursue such and such activity,” and “If our customers don’t respond to this offer, we will focus on that offer instead.”
• Contingency plans are important because the founding strategy is much like a hypothesis; the start of the business is a
series of experiments, and adjustments must be made as the business learns more and matures over time.
FUNCTIONAL PLANNING MODEL

Collectively, the functional plans could be considered an overall strategy

or plan describing how, when, and where the objectives and goals will be
accomplished for each function as well as for the entire business. Plans for
production, marketing, and financing are the minimum that need to be developed.
THE STRUCTURAL FUNCTIONAL MODEL

• The structural functional approach tests the durability and flexibility of the organization's structure for responding to a
diversity of situations and events.
• According to this model, all systems need maintenance and continuity. The following aspects define this:
• security of the organization as whole in relation to the social forces in its environment (this relates to ability to forestall
threatened aggressions or deleterious consequences from the actions of others);
• stability of lines of authority and communication (this refers to the continued capacity of leadership to control and have
access to individuals in the system);
• stability of informal relations within the organization;
• continuity of policy making (this refers to the ability to reexamine policy an a continuing basis);
• homogeneity of outlook (this refers the ability to effectively orient members to organization norms and beliefs).
FUNCTIONAL STRUCTURAL MODEL

 This model is very highly controlled

 It appears to be a very conservative approach to management
 It is regimented and relatively non-flexible
 It can be efficient and cost saving
ATTEMPTING QUESTION 1
proposal

Do a mind map on how to tackle question 1

Recommendation
of a model based background
on justifications

Advantages &
Description of the
disadvantages of
2 models
each model
BREAKDOWN

Give a general overview of what the different models represent and the importance of
engaging a business plan.
Draw up on the two models of choice and how both can help the BME home to engage in
strategic planning to ensure the realization of the organizational vision. Give some
information on the two models and perhaps give examples of business success recorded by
some organizations who have adopted the model before now.
BACKGROUND

• Give a brief history of the models as well as what each model represents. what are the
intrinsic factors that make each model unique and how these factors or elements make the
model an enduring tool for meeting strategic planning?
DESCRIPTION OF THE MODELS

Give the holistic description of each model stating the following:

Model make up
How the model works using industrial examples
Tools or elements associated with each model explaining the relevance of each
ADVANTAGES /SHORTFALLS OF EACH MODEL

• State the advantages of each model

• State the shortfalls of each model
RECOMMENDATION

Start with the comparison of the two models. Do some analysis of the comparison to
determine which is best fit for BME care setting. Analysis will look at the capacity or
impact each model may have on the business plan or strategic plan of BME and by
extension in the overall care sector that helps influence decision at a wider level or
perspective. References are needed at this point.
Choose the model of choice based on suitability to BME as an organization into caring
with due consideration that human lives are involved in care business.
ANALYSING FINANCIAL PERFORMANCE

Financial performance of an organization can be analyzed using the Du Pont model.

This model is used to understand the 3 main drivers of Return on Equity. (ROE).i.e.
 Profit margin
 Assets turnover
 Equity multiplier
ROE is described as the value which investors have after assets liquidation and payment for
liabilities. Whatever that is left for shareholders when a company minuses its assets from its debt.
(Assets –liabilities equals Equity)
WHY DU PONT IS IMPORTANT TO PERFORMANCE
ANALYSIS
The DuPont analysis model provides a more accurate assessment of
the significance of changes in a company's ROE by focusing on the various
means that a company has to increase the ROE figures. The means include the
profit margin, asset utilization and financial leverage.
COMPONENTS OF DU PONT ANALYSIS

1.Profit Margin– This is a very basic profitability ratio. ...

2.Net Profit Margin= Net profit/ Total revenue= 1000/10000= 10%
3.Total Asset Turnover– This ratio depicts the efficiency of the company in using its
assets. ...
4.Asset Turnover= Revenues/Average Assets = 1000/200 = 5.
DU PONT EQUATION

The DuPont Equation: In the DuPont equation, ROE is equal to profit margin

multiplied by asset turnover multiplied by financial leverage.
Under DuPont analysis, return on equity is equal to the profit margin multiplied by
asset turnover multiplied by financial leverage.
WHAT IS A GOOD ROE

 ROE is a measure of management's ability to generate income from the equity

available to it. ROEs of 15–20% are generally considered good. ROE is also a
factor in stock valuation, in association with other financial ratios.
It helps the investors and shareholders determine the level confidence and trust on
how organization is run the management .
CALCULATING ROE

• Divide net profits by the shareholders' average equity. ROE=NP/SEavg. For

example, divide net profits of $100,000 by the shareholders average equity of
$62,500 = 1.6 or 160% ROE.
UNDERSTANDING THE NON FINANCIAL
MEASURES USED IN EVALUATING
PERFORMANCE
• Use of Balanced Score Cards
• Use of performance Pyramid
USE OF BALANCED SCORE CARD

This is a model of non financial element used in evaluating performance of an organization.

This is a process that uses some underlying factors to probe organizational performance to
help stakeholders know the current state and be able to predict future performance.
Developed by Kaplan and Norton (1992) the Balanced Score Card consists of 4 elements.
See below
THE BALANCED SCORE CARD
BASIC ELEMENTS OF THE BALANCED SCORE
CARD
There are four basic viewpoints or perspectives to take with the KPI balanced scorecard:
1.Financial perspective – tracking financial performance e.g.: Profit Margin, Asset turnover
& Shareholder equity.
2.Customer perspective – tracking customer satisfaction, attitudes, and market share goals.
3.Internal process perspective – covers internal operational goals needed to meet customer
objectives.
4.The learning and growth or innovation perspective- intangible drivers for future success
such as human capital, organizational capital, training, informational systems, etc.
WHAT ARE THE INTERNAL PERSPECTIVES OF
CONCERN WITH NHS
1.Quality care
2. Staff engagement
3.Effective communication
4.Poor Performance
5.Lack of skills
6.Appointment backlog
7.Misdiagnosis prevalence
8.Misappropriation of funds
9.Manpower shortage
CLASS ACTIVITY 1- UNDERSTANDING
CUSTOMER PERSPECTIVE
As a manager, you want to find out the level of customer satisfaction:
draw 5 questions that dwell on customer satisfaction.
1.how well does our product meet your needs?
2. how long have you been using our product?
3.would you recommend our product to a colleague?
4. how would you rate your experience with our services ?
5. would you buy from our company again?
INTERNAL PERSPECTIVE

• Policies
• Organizational systems
• Processes
• Procedures
• Leadership & Management
CHOOSE AN AREA IN NHS WITH POOR PROCESS
OR PROCEDURE FOR DISCUSSION

Homework
Find out the impact these have on the NHS strategic goal for healthcare quality
improvement.
• Invoicing and payment process
• Handling workforce stress
• Appointment and routine checks –the backlog
RELATIONSHIPS IN BALANCED SCORE CARD
HOW BALANCED SCORE CARD IS IMPLEMENTED

• Clarifying and translating vision into strategy – identifying strategic objectives and capturing them in a
strategic map. This requires the business leaders to reach consensus on what the strategic objectives truly are,
and that all objectives are linked to deliverables to avoid “pet projects.”
• Communicating strategic objectives and measures and linking them to operations – this includes establishing a
two-way communications with stakeholders to encourage dialogue to refine processes and promote feedback.
• Planning and setting targets to align strategic initiatives – including identifying targets of each of the objectives
measured by the KPIs. Ideally, individual targets are set for strategic objectives and projects, which are in turn
linked to the larger strategic objectives.
• Enhancing strategic feedback and learning – this includes learning from performance information and using the
findings from the balanced scorecard to refine decision-making.
BENEFITS OF THE BALANCED SCORE CARD

• The benefits include:

It can be used to provide strategic business direction
It makes every member of the workforce key in into the corporate planning hence it is all
inclusive in approach.
It can be result oriented if carefully planned and implemented.
It can be used to achieve empowerment of staff to take responsibilities facilitating career
growth.
CHALLENGES WITH BALANCE SCORE CARD

• It is dependent on PESTLE situation

• Different ideologies may affect group cohesiveness and affect the Balance score card
model operation.
• It has a challenge with time .It can experience challenges within the short time frame.
• It is expensive to implement hence it is all inclusive.
• It may have issues with change and change management.
PERFORMANCE PYRAMID

This is another model for assessing performance .It is partially a non financial measure that
tend to focus on organizational performance through 4 levels.
LEVEL 1

Level 1 is the organizational vision through which it hopes to achieve success. Level 1 is
formulated and managed by the top management comprising of directors and senior
managers.
LEVEL 2

Here, achievement is focused on the achievements of the organization via the financial and
marketing measures. It includes planning & budgeting and marketing & sales proposals.
The market to be traded in, the size and the segmentations and positioning.
LEVEL 3

The marketing and financial strategies are linked to users of services and customers .The
main focus becomes customer satisfaction that is hinged on areas such as delivery and after
sales service provision. This may ignite product and service advertisement and promotion
using different strategies to reach and lure customers for patronage and loyalty.
LEVEL 4

The internal efficiency is used at this level to drive the realization of level 3 objectives. The
internal efficiency drive would give rise to cycle time, packaging, delivery time
management and quality customer relationship.
PERFORMANCE PYRAMID
BENEFITS OF PERFORMANCE PYRAMID

It clearly indicate roles and responsibilities of stakeholders.

It helps in organizational planning and management of resources.
Different levels of performance can easily be tracked and changes made accordingly.
It can lead to meeting organizational goals thereby sustaining business and market share
values.
CHALLENGES WITH PYRAMID MODEL

• It tends to be hierarchical and does not encourage decentralization in business decisions.

• Communication is downward sloppy and may take a longer time to cascade down to the
lower levels.
• External effectiveness is solely dependent on the internal efficiency.
• High level interdependence may affect specialization.