Strategic planning is the process by which administrators of any organization are able to project their plans and develop procedures and operational processes that are necessary for attainment of their goals (Goodstein, Nolan & Pfeiffer, 1993, p.5). This paper critically analyses a case study of Bloomington hospital administration, by identifying its problems and recommending appropriate solutions.
Strategic Planning
It highlights a case of Bloomington hospital administration failing in its decision-making process due to various poor management strategies.
Case Summary
During the 1980s, Bloomington was the only hospital in Indiana. In its effort to expand, in 1990 it explored the possibility of including cardiovascular surgery in its program. This decision was meant to attract more specialists in major medical fields and it was assumed that the hospital’s reputation among the physicians would grow. However, by 1993, the board of directors was in a decision crisis, regarding the program as well as on the fate of the hospital administrators. The planned expansion program had received various critics and objections from various stakeholders. They included:
- When the hospital administration called forums for physicians on the strategic plan, only those with direct interests in the project attended.
- The program would be very costly and use more resources, thereby becoming more dominant and increasing the hospital’s financial liabilities.
- Physicians had a general view that the decision-making process was flawed since it did not have enough input and there was no involvement of the people.
- Given the cost of the CV surgery, GPs were concerned about its need.
- There was a concern as to whether the number of operations performed would service the program itself.
The board decided to proceed with the strategic plan arguing that it would increase resources and other surgeries. This decision disappointed the Bloomington physicians.
Statement of the problem
The hospital administration of Bloomington Hospital lacked proper strategic planning skills. The top management did not involve all the necessary parties in major decision-making. As a result of this failure, the proposed project of introducing cardiovascular surgery in the hospital does not succeed. Some parties complained that they were not consulted and hence rejected this move.
Proposed Solutions
For effective strategic planning, the hospital administrators should consider the following; setting out the mission and objectives of the institution which will guide it to look forward to achieving its visions in pursuit of future opportunities. This involves defining its financial and strategic objectives which should be measurable. Secondly, it should perform an analysis of both its internal and external environment. In internal analysis, it would check its weaknesses and strengths in communication and decision making. This will enable a good flow of information and a participatory decision-making process. After identifying the strengths and weaknesses involved, the administration would formulate a strategy to ensure the inclusion of all stakeholders in the decision-making process. The strategy selected would then be implemented and the administration would ensure all involved parties attend forums, where all resources are organized and the staff is motivated. This will ensure that all the objectives are achieved. Finally, a process of evaluation would be conducted to identify any weaknesses. The necessary changes would then be made to suit the situation (Kemp, 1995, p.35).
Learning Application
After a critical analysis of the case of Bloomington hospital, there was a problem of lack of involvement in major ddecision-making This resulted in some sectors like the General Physicians not supporting the idea and hence its failure. With the proposed model of strategic planning, consultation is guaranteed, and thus the involvement of all stakeholders. This will build confidence in the hospital’s administration and any proposed program will succeed.
References
Goodstein, D., Nolan, T. & Pfeiffer. (1993). Applied Strategic Planning: a Comprehensive guide. New York, NY, McGraw-Hill Professional.
Kemp, R. (1995). Handbook of Strategic Planning. East Rockaway, NY, Cummings & Hathaway.