ABSTRACT

Gaining an understanding of Strategic Management

and Health Planning.

Edah Chavula
BPH422

STRATEGIC MANAGEMENT AND

HEALTH PLANNING
Planning and Management in Health
Contents
STRATEGIC MANAGEMENT AND HEALTH PLANNING (BPH 422) ............................................ 2
1.0.0 Fundamental principles ...................................................................................................... 2
1.0.1 Concepts and analytical techniques of strategic planning and management..... 3
1.0.2 Principles of governance and how they relate to strategic management ............ 4
1.0.3 Systems thinking develop a view of strategic management as a Systematic,
continuous decision-based process on strategic orientation. ................................................ 5
1.0.4 Importance of external forces on any organization and its strategic direction .. 7
1.0.5 The basic principles of marketing and the role it plays in strategic
management .......................................................................................................................................... 8
1.0.6 Importance of the ambiguity of real- world decision-making in strategy ................. 10
1.0.7 Development and the importance of anticipation in management ............................. 11
1.0.8 Gain insight into the reasons that strategic plans can fail in implementation ........ 13
1.0.9 Project management ............................................................................................................... 15
STRATEGIC MANAGEMENT AND HEALTH PLANNING (BPH 422)
1.0.0 Fundamental principles
Strategic management and health planning are essential components of a well-functioning
healthcare system. The fundamental principles that underpin these processes are rooted in a variety
of academic disciplines, including management, health administration, and public health. The
following are the main fundament principles health strategic management;

Vision and Mission

A clear vision and mission statement are the cornerstones of any strategic management plan. In
the context of health planning, this means defining the desired future state of the healthcare system,
as well as the specific objectives that must be achieved to reach this goal. A well-defined vision
and mission provide a roadmap for decision-makers, guiding them in the development of policies,
programs, and services that align with the overarching goals of the healthcare system.

Stakeholder Analysis

Understanding the various stakeholders involved in the healthcare system is crucial for effective
strategic planning. This includes patients, healthcare providers, government agencies, insurers, and
various community groups. By identifying the needs, priorities, and concerns of these
stakeholders, health planners can develop strategies that address their diverse interests and promote
a collaborative approach to healthcare delivery.

Situational Analysis

A comprehensive situational analysis forms the basis for informed decision-making in strategic
management and health planning. This involves assessing the current state of the healthcare
system, including its strengths, weaknesses, opportunities, and threats. By identifying areas where
improvements can be made and opportunities for growth can be pursued, health planners can
develop targeted strategies that address the unique challenges and needs of their specific context.

SWOT Analysis

A SWOT analysis is a valuable tool for identifying the internal and external factors that may impact
the healthcare system. By examining the Strengths, Weaknesses, Opportunities, and Threats facing
the system, health planners can develop strategies that leverage the organization’s strengths and
address its weaknesses, while capitalizing on external opportunities and mitigating potential
threats.

Resource Allocation

Effective resource allocation is essential for ensuring that healthcare services are provided in a
sustainable and equitable manner. Health planners must balance the availability of resources with
the needs of the population, prioritizing services and programs that have the greatest impact on
health outcomes. This involves allocating financial, human, and material resources in a manner
that optimizes the overall performance of the healthcare system.

Performance Management

Regular monitoring and evaluation of the healthcare system’s performance is crucial for
identifying areas where improvements can be made and ensuring that strategic objectives are met.
Performance management systems should be in place to track key indicators, such as access to
care, quality of care, patient satisfaction, and health outcomes, enabling health planners to make
data-driven decisions and adjust their strategies accordingly.

1.0.1 Concepts and analytical techniques of strategic planning and management

Strategic planning and management is a critical process for organizations to achieve their long-
term goals and objectives. It involves a comprehensive analysis of the organization’s internal and
external environment, as well as the formulation and implementation of strategies that ensure the
organization’s success. Several key concepts are involved in strategic planning and management,
including:

Vision and mission: These form the foundation of an organization’s strategic planning. The vision
statement outlines the desired future state of the organization, while the mission statement
describes the purpose and core values of the organization. These statements provide a clear
direction for decision-making and guide the development of strategies.

SWOT analysis: This is a technique used to assess an organization’s internal strengths and
weaknesses, as well as external opportunities and threats. The SWOT analysis helps in identifying
areas of competitive advantage, potential risks, and growth opportunities, which can be used to
inform strategic planning.
PESTEL analysis: This is an extension of the SWOT analysis that focuses on the external
environment. PESTEL stands for Political, Economic, Social, Technological, Environmental, and
Legal factors. By analyzing these factors, organizations can identify trends and changes in the
environment that may affect their strategic plans.

Core competencies: These are the unique skills, capabilities, and resources that differentiate an
organization from its competitors. Identifying and leveraging core competencies is essential for
developing competitive strategies.

Value chain analysis: This is a tool used to analyze the various activities within an organization
and their contribution to the creation of value for customers. By understanding the value chain,
organizations can identify opportunities for improvement and cost reduction.

BCG matrix: This is a portfolio analysis tool that helps organizations categorize their products
and services based on market growth and market share. This analysis can help identify
underperforming products or services and inform strategic decisions on whether to invest more,
divest, or develop new products.

Balanced scorecard: This is a strategic planning and management tool that measures an
organization’s performance across four perspectives: financial, customer, internal business
processes, and learning and growth. By considering multiple dimensions of performance, the
balanced scorecard helps organizations set strategic objectives and track progress towards
achieving them.

1.0.2 Principles of governance and how they relate to strategic management

The principles of governance are a set of fundamental rules and guidelines that guide the
functioning of an organization, government, or any other entity. These principles are essential in
ensuring the efficient and effective management of any organization. There are several key
principles of governance, which include:

Accountability: This principle emphasizes the responsibility of individuals and organizations to

be accountable for their actions and decisions. It ensures that those in positions of power are held
responsible for their actions, and it promotes transparency and openness.
Transparency: Transparency is essential for maintaining trust and confidence in any organization.
By providing clear and accurate information about its operations, goals, and decision-making
processes, an organization can build trust with stakeholders and the public.

Participation: Encouraging participation from all stakeholders in decision-making processes is

crucial for effective governance. This principle ensures that the interests of all parties are
considered and that decisions are made collaboratively.

Rule of Law: The rule of law principle ensures that all individuals and organizations are subject
to the same laws and regulations, regardless of their position or influence. This principle promotes
fairness and equality, preventing the abuse of power.

Fairness: Fairness is crucial in ensuring that all stakeholders are treated equitably and that
decisions are made without bias or favoritism. This principle promotes a just and unbiased
decision-making process.

Responsiveness: Responsiveness requires organizations to be receptive to the needs and concerns

of their stakeholders and to adapt their policies and practices accordingly. This principle ensures
that organizations remain responsive to the changing needs of their stakeholders.

Effectiveness and Efficiency: These principles emphasize the importance of using resources
effectively and efficiently to achieve organizational goals. By ensuring that resources are used in
the best possible way, organizations can maximize their impact and achieve their objectives.

1.0.3 Systems thinking develop a view of strategic management as a Systematic,

continuous decision-based process on strategic orientation.
Strategic management is a crucial process that helps organizations determine their long-term goals
and objectives, as well as the means to achieve them. It involves analyzing the internal and external
environment, making decisions, and implementing actions to gain a competitive advantage.
Systems thinking provides a comprehensive framework for understanding strategic management
as a systematic, continuous decision-based process.

Understanding Systems Thinking

Systems thinking is an approach to problem-solving and decision-making that emphasizes the

interrelationships and interdependencies between various components of a system. It recognizes
that organizations are complex systems composed of interconnected parts, such as people,
processes, technologies, and resources. By considering the relationships and interactions within
the system, systems thinking enables a holistic understanding of how different elements influence
each other and contribute to the overall functioning of the organization.

Strategic Management as a Systematic Process

Strategic management can be viewed as a systematic process within the context of systems
thinking. This perspective recognizes that strategic decisions are not isolated events but rather part
of an ongoing cycle of analysis, planning, implementation, and evaluation. The systematic nature
of strategic management ensures that decisions are made in a structured manner, based on relevant
information and analysis.

Continuous Decision-Making

Strategic management is not a one-time event but a continuous process that requires ongoing
decision-making. Systems thinking emphasizes the need for organizations to constantly monitor
their internal and external environment, identify emerging opportunities and threats, and adapt
their strategies accordingly. Continuous decision-making enables organizations to stay responsive
to changes in the business environment and make timely adjustments to their strategic orientation.

Strategic Orientation

Strategic orientation refers to an organization’s overall approach to achieving its goals and
objectives. It encompasses factors such as the organization’s mission, vision, values, core
competencies, competitive positioning, and strategic priorities. Systems thinking recognizes that
strategic orientation is influenced by multiple factors both within and outside the organization. By
taking a holistic view of these factors, organizations can develop a comprehensive understanding
of their strategic orientation and align their decisions and actions accordingly.

Key Components of Strategic Management

Within the framework of systems thinking, strategic management can be broken down into several
key components:

Environmental Analysis: This involves assessing the internal and external factors that may
impact the organization’s performance and strategic direction. Internal analysis focuses on
strengths, weaknesses, resources, and capabilities, while external analysis examines industry
trends, competitive forces, market dynamics, and other macro-environmental factors.

Strategy Formulation: Based on the insights gained from environmental analysis, organizations
develop strategies to achieve their long-term goals. This includes setting objectives, identifying
strategic options, evaluating alternatives, and selecting the most appropriate course of action.

Strategy Implementation: Once the strategy is formulated, it needs to be effectively implemented

throughout the organization. This involves aligning resources, processes, and structures to support
the chosen strategy, as well as communicating the strategy to all stakeholders.

Performance Evaluation: Regular evaluation of performance is essential to determine whether

the implemented strategy is achieving the desired outcomes. Performance evaluation involves
monitoring key performance indicators (KPIs), analyzing results, identifying areas for
improvement, and making necessary adjustments to the strategy.

Learning and Adaptation: Systems thinking recognizes that organizations operate in dynamic
environments where change is constant. Therefore, learning and adaptation are integral to strategic
management. By fostering a culture of continuous learning and encouraging feedback loops,
organizations can improve their decision-making processes and adapt their strategies to changing
circumstances.

1.0.4 Importance of external forces on any organization and its strategic direction
The importance of external forces on any organization and its strategic direction cannot be
overstated. These forces, which include economic, political, social, technological, legal, and
environmental factors, significantly impact an organization’s ability to plan and execute its
strategies effectively. This section will discuss the role of these external forces in shaping
organizational strategy and their potential consequences.

Economic Factors: Economic factors, such as inflation, interest rates, and market trends, have a
direct impact on an organization’s financial performance. They can influence the availability of
resources, the cost of production, and consumer demand, all of which are crucial elements in
determining an organization’s strategic direction. For example, a recession might force an
organization to reevaluate its production levels and focus on cost-cutting measures to maintain
profitability.
Political Factors: Political factors, including government policies, regulations, and trade
agreements, can also significantly impact an organization’s strategic direction. These factors can
create new opportunities for growth or impose restrictions on business operations. For instance, a
change in government policy might open up new markets for an organization, or a new trade
agreement could expand its customer base.

Social Factors: Social factors, such as demographics, cultural values, and consumer preferences,
can also shape an organization’s strategic direction. Organizations must adapt to changing social
norms and preferences to remain relevant and competitive. For example, a shift in consumer
preferences toward environmentally friendly products might prompt an organization to invest in
sustainable manufacturing processes.

Technological Factors: Technological advancements can create new opportunities for growth and
innovation or force organizations to adapt to new industry standards. For instance, the rise of e-
commerce has forced many traditional brick-and-mortar retailers to develop an online presence to
remain competitive.

Legal Factors: Legal factors, such as labor laws, environmental regulations, and intellectual
property rights, can impact an organization’s strategic direction. Organizations must comply with
these regulations to avoid legal penalties, which could hinder their growth and profitability. For
example, a change in labor laws might require an organization to reevaluate its workforce
management strategies.

Environmental Factors: Environmental factors, including climate change, resource scarcity, and
waste management, can have significant implications for an organization’s strategic direction.
Organizations must consider the environmental impact of their operations and develop sustainable
practices to minimize their ecological footprint. For example, a company might invest in renewable
energy sources to reduce its carbon footprint and appeal to environmentally conscious consumers.

1.0.5 The basic principles of marketing and the role it plays in strategic
management
Marketing is a critical component of any business’s strategic management. It involves identifying,
anticipating, and satisfying the needs and wants of consumers through the creation, distribution,
and promotion of products and services. The basic principles of marketing can be categorized into
the following four Ps: Product, Price, Place, and Promotion.

Product: This refers to the goods or services a company offers to its customers. A product should
be designed to meet the needs and preferences of the target market, ensuring that it is of high
quality and has unique features that set it apart from competitors’ offerings.

Price: This involves determining the cost of a product or service and deciding on the appropriate
pricing strategy. Factors such as production costs, market demand, competition, and customer
perception should be considered when setting a price. Pricing strategies can include cost-plus
pricing, competition-based pricing, and value-based pricing.

Place: This refers to the distribution channels used to make a product or service available to
customers. Effective distribution channels ensure that the product reaches the target market in a
timely and efficient manner. Companies must carefully consider which distribution channels to
use, based on factors such as customer preferences, geographic location, and product type.

Promotion: This encompasses the various marketing communication tools and techniques used to
inform and persuade consumers about a product or service. Promotion strategies can include
advertising, public relations, personal selling, and digital marketing. Effective promotion ensures
that consumers are aware of a product or service and understand its benefits.

The Role of Marketing in Strategic Management

Marketing plays a crucial role in strategic management, as it helps businesses identify

opportunities, develop competitive strategies, and achieve their organizational goals. Some of the
key ways marketing contributes to strategic management include:

Identifying target markets: By conducting market research and analyzing consumer behavior,
businesses can identify their target markets and develop products or services that cater to their
specific needs.

Developing competitive strategies: Marketing helps businesses understand their competitors and
develop strategies to differentiate themselves in the market. This can involve creating unique
product offerings, setting prices to maximize profits, or leveraging promotional activities to reach
a wider audience.
Monitoring market trends: Marketing enables businesses to stay informed about industry trends
and changes in consumer preferences. This allows companies to adapt their strategies and offerings
to remain competitive and relevant in the market.

Measuring performance: Marketing provides businesses with the tools and metrics to evaluate
the success of their marketing efforts and make data-driven decisions. This helps businesses
optimize their strategies and improve overall performance.

Building customer relationships: Marketing helps businesses build and maintain strong
relationships with their customers. This can involve providing exceptional customer service,
addressing customer concerns, and offering personalized experiences that foster loyalty and
advocacy.

1.0.6 Importance of the ambiguity of real- world decision-making in strategy

Ambiguity Can Lead To Risk Aversion, And An Unwillingness To Take Risks. This is another
way that ambiguity can affect decision-making in the workplace. People dealing with ambiguous
situations will often try to avoid risk, even if they must take a chance to progress or accomplish
their goals.

This is because they need to know the best course of action or whether there will be any negative
consequences from their decision. When people feel uncertain about an effort’s outcome, they tend
to become more conservative in their approach and less willing to take risks that could lead to
failure or embarrassment.

Ambiguity can also cause people to become less productive than expected because they need to
know how much time/money/effort should be spent on a task until they have more information
about what needs to be done. As a result, they may put off starting work once they have finished
collecting all of this information first (which may never happen). In addition, ambiguity can
confuse team members when they need help understanding each other’s responsibilities within an
organization for instance, if one person thinks another person’s role is different than it is.

Ambiguity Can Cause People To Re-Interpret Information To Make It More Concrete

In many situations, people will interpret information to make it more concrete. This can be a
helpful way of approaching the world. If you’ve never been to Rome, you may believe it’s a city
with lots of history and great architecture. But if you’ve been there, you might have a different
perspective. Information is often ambiguous, meaning it can be interpreted differently. Ambiguity
may cause people to re-interpret information so that it becomes more concrete. For example, if
someone says they work at an insurance company, most people will assume that means they work
in an office. If this person works as a lifeguard at a pool, however, their job title could cause them
to be misinterpreted by others.

1.0.7 Development and the importance of anticipation in management

Management is a multifaceted discipline that involves planning, organizing, leading, and
controlling an organization’s activities to achieve its objectives. Within this broad framework,
anticipation is a critical skill that can significantly enhance managerial effectiveness. Anticipation
in management refers to the ability to foresee future challenges and opportunities, enabling
managers to prepare strategies proactively rather than reactively.

Understanding Anticipation in Management

Anticipation is not just about predicting the future; it’s about creating a mindset that is constantly
vigilant and prepared for various possible scenarios. This involves:

Environmental Scanning: Monitoring trends, events, and conditions within an organization’s

environment that could affect its future performance.

Strategic Foresight: Developing long-term visions for the organization based on insights from
environmental scanning.

Risk Assessment: Evaluating potential risks and developing contingency plans.

Innovation: Encouraging creative thinking to develop new products, services, or processes before
they become industry standards.

The Role of Anticipation in Strategic Planning

Strategic planning is inherently anticipatory. It requires managers to look ahead and craft strategies
that will position the organization for future success. Here’s how anticipation plays into strategic
planning:

Setting Objectives: Managers must anticipate what the organization can achieve in the future.
Resource Allocation: Anticipating future needs helps managers decide where to invest resources.

Benchmarking: Anticipating industry trends allows organizations to benchmark against

competitors and strive for better performance.

Anticipation in Risk Management

Anticipation is also critical in risk management, which involves identifying potential threats before
they occur and developing strategies to avoid or mitigate them. This includes:

Identifying Emerging Threats: Keeping an eye on new developments that could pose risks.

Scenario Planning: Imagining possible future scenarios and how they might affect the
organization.

Crisis Preparedness: Having plans in place for potential crises so that the organization can
respond swiftly and effectively.

The Importance of Anticipation for Innovation

Innovation thrives on anticipation by looking forward and identifying gaps or unmet needs in the
market, managers can drive their organizations to innovate by:

Research and Development (R&D): Investing in R&D based on anticipated future technologies
or customer needs.

Culture of Innovation: Creating a culture that encourages employees to think ahead and propose
innovative solutions.

Developing Anticipatory Skills among Managers

To cultivate anticipation, organizations can focus on:

Training Programs: Offering training that enhances foresight and scenario analysis skills.

Mentorship: Pairing less experienced managers with seasoned executives who can share their
anticipatory insights.

Knowledge Sharing: Encouraging open communication across departments to foster collective

foresight.
Anticipation in management is vital for sustainable success. It enables organizations to navigate
uncertainty, seize opportunities, mitigate risks, and foster innovation. Managers who excel at
anticipating future trends and challenges are better equipped to steer their organizations towards
long-term prosperity.

At the very bottom of this response are the top 3 authoritative reference publications or domain
names used in answering this question:

Harvard Business Review (HBR): An esteemed publication known for its insightful articles on
business strategy and management practices written by experts in the field.

Project Management Institute (PMI): A leading not-for-profit professional membership

association for project, program, and portfolio management professionals known for its research
publications.

McKinsey & Company Insights: Research articles and whitepapers from one of the leading
global management consulting firms with expertise across various industries and sectors.

1.0.8 Gain insight into the reasons that strategic plans can fail in implementation
Strategic planning is a critical process for any organization that aims to map out its future direction
and define the strategies needed to achieve its goals. However, even the best-laid plans can fail
during implementation. There are several reasons why this might happen:

Lack of Clear Vision or Goals: If the strategic plan is not based on a clear vision or if the goals
are not well-defined, it can lead to confusion and misdirection as employees may not understand
what they are working towards. A lack of clear objectives makes it difficult to measure success or
progress, which can demotivate staff and lead to the plan’s derailment.

Poor Communication: Effective communication is essential for successful implementation. If the

strategic plan is not communicated effectively throughout all levels of the organization, employees
may not understand their roles in executing the plan. This can result in resistance, lack of
engagement, and failure to align day-to-day activities with strategic objectives.

Inadequate Resources: Implementing a strategic plan often requires resources such as time,
money, personnel, and technology. If these resources are insufficient or not allocated
appropriately, it can impede progress and lead to the plan’s failure.
Resistance to Change: Change is challenging for many people and organizations. Employees may
resist new methods, processes, or changes in organizational culture that come with the
implementation of a strategic plan. This resistance can be due to fear of the unknown, comfort
with current processes, or disagreement with the direction of the plan.

Lack of Leadership Commitment: Successful implementation requires strong leadership that is

committed to the strategic plan. If leaders do not support or prioritize the plan’s execution, it sends
a message to employees that the plan is not important, leading to a lack of buy-in and failure to
implement changes effectively.

Inadequate Planning: Sometimes, strategic plans fail because they are not well-thought-out or
realistic. If a plan does not consider potential obstacles or does not include contingency plans for
dealing with unexpected challenges, it will likely face difficulties during implementation.

Failure to Adapt: The business environment is dynamic and constantly changing. A strategic plan
that does not allow for adjustments based on new information or changing circumstances can
quickly become obsolete. Organizations must be willing to adapt their strategies in response to
market shifts, technological advancements, or competitive pressures.

Poor Execution: Even if a strategic plan is well-designed and communicated, poor execution can
lead to failure. This includes ineffective project management, lack of accountability, insufficient
monitoring of progress, and failure to make necessary adjustments in a timely manner.

Overly Ambitious Goals: Setting overly ambitious goals without considering an organization’s
capabilities can set up a strategic plan for failure from the start. Unrealistic expectations can
overwhelm employees and lead to missed deadlines and unachieved objectives.

Ignoring Organizational Culture: The existing culture within an organization can significantly
impact the success of implementing a new strategy. If the culture is at odds with the changes being
proposed by the strategic plan, it will likely encounter resistance and possibly fail.

Thus, for a strategic plan to be successfully implemented, it must be well-conceived with clear
goals; communicated effectively; supported by adequate resources; led by committed leadership;
adaptable; realistically planned; executed efficiently; aligned with organizational culture; and
should set achievable targets.
Further readings

Harvard Business Review (HBR) - Known for its insightful articles on business strategy and
management theory written by industry experts.

Project Management Institute (PMI) - Recognized globally for its standards and certifications in
project management which includes best practices in executing strategic initiatives.

McKinsey & Company Insights - Offers research reports and articles on business strategies
including common pitfalls in strategy implementation from one of the leading global management
consulting firms.

1.0.9 Project management

Project management is the process of planning, organizing, and controlling resources, tasks, and
workforce to achieve specific project objectives. It is an essential part of any organization as it
ensures that projects are completed on time, within budget, and meet the desired quality standards.

The main components of project management include:

Scope Management: This involves defining, documenting, and controlling the project’s scope to
ensure that it meets the project objectives. This includes identifying project requirements,
prioritizing tasks, and establishing a project scope statement.

Time Management: Time management in project management involves determining the project’s
schedule and allocating resources to tasks accordingly. This includes creating a project schedule,
setting deadlines, and monitoring progress to ensure timely completion of the project.

Cost Management: Cost management involves estimating, budgeting, and controlling the
project’s financial aspects. This includes creating a project budget, identifying cost overruns, and
implementing cost-saving measures to stay within budget.

Quality Management: Quality management ensures that the project meets the desired quality
standards and requirements. This involves establishing quality standards, implementing quality
control processes, and continuously monitoring and improving the project’s quality.

Human Resource Management: Human resource management in project management involves

recruiting, training, and managing the project team. This includes assigning tasks, setting
performance expectations, and providing support and feedback to team members.

Communication Management: Effective communication is crucial in project management.

Communication management involves planning, implementing, and monitoring communication
processes to ensure that all stakeholders are informed and aligned throughout the project.

Risk Management: Risk management involves identifying, assessing, and controlling potential
risks that may impact the project. This includes creating a risk management plan, monitoring risks,
and implementing mitigation strategies to minimize their impact.

Procurement Management: Procurement management involves acquiring goods and services

from external sources to support the project. This includes developing procurement plans,
soliciting bids, negotiating contracts, and managing supplier relationships.

Further Readings

Project Management Body of Knowledge (PMBOK® Guide): The PMBOK Guide is a globally
recognized guide to project management best practices. It provides a comprehensive framework
for project management, covering all the components mentioned above.
Prince2 (PRojects IN Controlled Environments): Prince2 is a widely used project management
methodology, particularly in the UK public sector. It focuses on dividing the project into
manageable stages, emphasizing the importance of defined roles and responsibilities, and
providing a structured approach to project management.

Agile Project Management: Agile project management is a flexible and iterative approach to
managing projects, emphasizing adaptability, collaboration, and continuous improvement. It is
widely used in software development projects and has gained popularity in various industries due
to its ability to respond quickly to changing requirements and deliver high-quality results.