preparing for strategic planning & business planning
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“How can you get to where you are going if you don’t know where you are?”. Preparing for Strategic Planning & Business Planning. Presented by Marsha J. Fountain, RN, MSN The Oncology Group, LLC. Learning Objectives. Know what information and data to collect - PowerPoint PPT PresentationTRANSCRIPT
Preparing for Strategic Planning & Business Planning
Presented by
Marsha J. Fountain, RN, MSNThe Oncology Group, LLC
“How can you get to where you are goingif you don’t know where you are?”
Learning Objectives• Know what information and data to collect • Know how and where to collect the information
and data • Collect necessary information and data for
strategic & business planning • Learn how to benchmark their information and
data • Understand key strategic planning and business
planning terminology • Learn how to write strategies, tactics and goals
for program growth• Know how to interface with the planning people
or consultants
Strategic PlanningYour Ticket to Your Destination
• Where you are now• Where you are
going• Mode of travel• Restrictions, if any• Departure time• Arrival time• Way-pointsVi
sion
Stra
tegi
esG
oals
Business/Operational Planning: The Map and the Travel Details
• The detailed travel map• Who is going with you• Short/long term goals• What you need along the
way• How to fly the plane • How to keep process on
track• Detailed financials• Contingency plans• Safety measures
What Information Do You Need for Strategic & Business Planning?• System Mission, Vision & Strategic
Plan• System Financial Projections• System Priorities• Past & Current Organization Plans• Past & Current Cancer Program Plans• Past & Current Radiation Therapy
Plans• National Trends Overview
Business Planning Terminology• Mission and Vision Statements• Strategies, Tactics and Goals• Action Plans• Implementation Plans• Budgets & Financial Projections• Organization Charts & Staffing Profiles • Equipment Inventories• Marketing Plans• Competitor Analyses
What Information Do You Need?• Market Share Analysis
– Yours– Your competitors– Regional Tertiary/Quaternary Magnet
Centers
Where Do Collect the Information? Market Share
• Determine current market for your services– Based on population based cancer
incidence from the State– Determine radiation therapy market
(usually 60 – 65% of all cancer patients) – Determine your incidence and market
share
Most Common Planning Errors• Looking at market share for inpatients
– Most available data by hospitals – Not appropriate for cancer care as most
care is outpatient• Assuming growing numbers mean
growth in program• Being unrealistic in plans…need to
base on hard decision points
Information Needed• Competitor Assessment
– Market Share– Future Plans– Types of Equipment and Staffing
Where to Collect Competitor Information• Hospital/cancer program published
annual reports• Web sites• City planning department• “jeans study”• Colleagues and friends
What to Collect about Competitors?
• Analytic Case Volume• Breadth of program• Current Market Position• Clinical Research Participation• Points of Differentiation (such as
stem cell program)
Is this your competitor or how your competitor sees you?
World Health Organization
NCI
Competitors• Equipment inventory• Inpatient care profile• Facility – profile, age, location, visibility• Mission / Vision / Goals• Patient volume statistics• Physicians – qualifications, reputation• Overall reputation, community good
will
What Information Do You Need and Where to Collect for Your Facility?• Treatment Volumes – From
department– By Site– By Procedure
• Visits per Day• Types of Treatments • Payor Mix – From Finance• Staffing Profile
What Information Do You Need?• Referral Sources and Related Volumes• Revenues Analysis
– By Procedure– By Site
• Cost analysis• Financial Resources Assumptions
– Capital Budgets– Philanthropy
Case Study A: Market Share Data
Cancer Patient
Pool
Hospital Cancer Patients
Market Share
Radiation Oncology Patient
Pool
Radiation Oncology Patients
Market Share
Primary Service Area
2,220 775 35% 1,333 261 20%
Secondary Service Area
469 69 15% 281 26 9%
Case Study B – Market Share
339
344
350
352
354
330
335
340
345
350
355
1999 2000 2002 2003 2004
Radiation Oncology New Patients
Case Study B - Market Share• Treatments increased by 4% over 5 years• Population increased by 2% over 5 years• Assumption – We are gaining market shareHOWEVER…• Population was aging significantly and
cancer cases actually grew by 7.7%
Case Study B – Market Share
2000 2005 Growth
Population 152,257 156,052 2.5%Cancer Cases 736 793 7.7%Hospital Radiation Therapy
Cases339 354 4.4%
Radiation Therapy Market 441.6 475.8 7.7%
Hospital Market Share 77% 74% -3.1%
Case Study C – Referral Patterns• Patient referrals continue to growHOWEVER…• With review, most cases come from 2
physicians – 1 surgeon & 1 medical oncologist
• Surgeon responsible for 22% of all patients• 1 Medical Oncologist responsible for 25%
of all patients
Problem?• Surgeon is being wooed by
competitor• Medical Oncologist is retiring
• How will you recover?
DOCTOR ON CALL
Typical referral patterns
Specialty Average Range
Medical Oncology
35% 25 – 40%
Surgery 16% 11 – 20% IM/FP 8% 6 – 15% Urology 21% 15 – 40%
Positioning• Need to understand where you want
to position yourself– Equal to other providers?– Community leader in oncology care?– Regional referral center?
• All affect strategies and tactics
PositioningReis and Trout stated in “Positioning: The Battle for your
Mind”• Minds are limited. To cope with the explosion
of information and choices, people have learned to rank products and brands in their mind.
• Minds hate confusion. People resist that which is confusing, and cherish that which is simple. They want to push a button and watch it work.
Positioning• Minds are insecure. Minds tend to be emotional,
not rational. People buy what others buy; people follow the herd; they will often look to others to help them decide how to act; heritage and culture sway buying decisions.
• Minds don’t change. People have attitudes on a wide range of issues. They seem to know what they like (and especially dislike) even regarding [issues] about which they know little. Perception is reality. Don’t get confused by the facts.
• Minds can lose focus. Specialist “brands” make a huge impression on the mind.
Benchmarking Your Data
• SROA• ASTRO• ACR• JCAHO• MGMA
• ASCO• ACE• ACCC• Consultants
Data without benchmarking is similar to spending without a budget.
Sources for national benchmarks
Areas for Benchmarking• Departmental volumes
– Treatments per machine– Treatments per patient– Types of cancers treated– Mix to treatments
• Financials– Collection Percentage– Margin– Payor Mix
• Staffing– Mix and numbers
• Referrals– By Specialty
• Research Patients• Technology
Strategic Planning Terminology• Mission• Vision• Strategies• Tactics• Goals• Action Plans• Implementation Plan
What is a Mission Statement?• Your purpose or reason for being• Usually a one-liner• Customer-focused• Tells the customer “What’s In It for
You!”• Begs the question, “How do you do
that?”• Answers the question, “Why are you
doing this or that?”• Easy to remember
Difference between Vision & Mission
• A vision is WHAT you want to become
while a
• A mission is WHY you want to become it
System & Service Line Missions• System Missions cover the waterfront
of what all programs combined are trying to accomplish
• Service Line Missions present what is their contribution to the System Mission
• Service Line Missions usually mirror System Mission language to emphasize the tie-in
Sample Mission Statements – The WHY• To improve the health of all people in the
communities we serve • To eliminate cancer. Achieving that goal begins
with integrated programs in cancer treatment, clinical trials, education programs and cancer prevention.
• Our mission -- the progressive control and cure of cancer through programs of patient care, research and education
• Our mission is to provide a confluence of groundbreaking biomedical and clinical research, high quality educational programs, outstanding patient care to the entire Metropolitan Washington area, and effective outreach for our community.
Sample Mission Statements• To meet the challenges of cancer and
associated treatments, enhancing the wellness and quality of life for the patient and the family.
• To provide quality care to our patients in a sensitive, respectful and compassionate manner.
• To provide Radiation Therapy Services to improve the wellness of our patients.
• The mission of the Cancer Center is to provide a comprehensive range of oncology services to the people we serve.
What is a Vision Statement?• Conditions that will exist at a defined point
in the future• Internally-focused• Usually several paragraphs to a page long• Usually denotes important/major changes • Tends to establish clear priorities for entity• Remember key words rather than the whole
Vision Statement
Vision Statements• Remember, a vision statement should be
bold. • And finally, a bit of Southern folk
wisdom, "There are only two things in the middle of the road, yellow lines, and dead possums."
V• “Be fruitful and multiply."• "We the people of the United States, in order to
form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.“
• "To explore strange new worlds, to seek out new life and new civilizations, to boldly go where no man has gone before." USS Enterprise, Federation Starship
System & Service Line Visions• Should show symmetry• Service line vision statements show clearly
tie into the system or organization vision • Service line vision statements often use much
of the same language but customize it to the oncology service line specifics
• Senior management should be able to immediately understand how the service line vision supports the overall organization vision
Corporate Visions – the WHAT• We will be the leading healthcare company by
– providing the best products and services for our customers around the world,
– consistently emphasizing innovation, – operational excellence and the highest quality in
everything we do. Baxter Healthcare Corporation.• To attain international leadership in the healthcare
field. To provide excellence in healthcare. To improve the standards of healthcare in communities in which we operate. To provide superior facilities and needed services to enable physicians to best serve the needs of their patients.
• Mayo will provide the best care to every patient every day through integrated clinical practice, education and research.
Sample Vision Statements – The WHAT• A team of dedicated healthcare professionals
reaching out to the West Oahu Community to care for its members with compassion, respect and medical excellence.
• A premier academic radiation oncology department committed to reducing the burden of human cancer.
• Leading Cancer Care through…– A comprehensive cancer control system, including:
prevention, early detection, diagnosis, treatment, and supportive care
– The delivery of high quality, accessible, multi-disciplinary care
– A network of partners – The recruitment and retention of a highly skilled &
compassionate cancer care team – An outstanding program of research and education
Sample Vision Statements• XYZ Cancer Program will:
– be recognized as the best cancer program in Southeast Wisconsin
– be the patients’ and physicians’ first choice for cancer care
– be a superb cancer program providing high quality, evidence-based care
– have effective integration of the oncology providers with all elements in the cancer care continuum
– foster pride in the caregivers who deliver services to our patients and their families
Reality Check for
Strategies and Tactics!
3 Criteria for Decision Making• We want to do it – more, we’re
passionate about it.• We can do it – we have the
competencies, capabilities and resources to do it, or we can get them in time.
• The market will support us – service level demand, financial support, etc.
Decision MakingIn order to achieve our goals:• At What Processes Must We Excel?• What People, Systems, Structures,
Technologies, Etc. Will Be Required?• What Actions Do We Need To Initiate
To Move Forward? When? Who’s Accountabilities?
What is a “Strategy”?• A major change to the current
conditions or projected conditions in the marketplace
• A major change in direction, resources, products or services
• A change that will improve current advantages or provide sustainable competitive advantage
Sample Strategies• Expand into new geographic markets• Add new services to fill out continuum• Build a new, larger, full service facility• Reposition/differentiate the service line• Reorganize with new admin/phys
leadership• Joint venture between hospital/physicians
What is a “Tactic”?• A refinement of a strategy• Provides clarity to the direction that a
strategy will take• Shows a stream of logic or intent in how a
strategy will work for a given organization• Provides one example of how the strategy
will be implemented – but it can easily be modified depending on the environment
What is a “Goal”?• It is a major step toward implementing the
mission, vision and strategies or tactics• States the end condition you want to exist• Give a measurable outcome or target• Tells you when it must be completed• Indicates who has primary accountability
2 Sample Strategy, Tactics and Goals
Strategies/Tactics Goals
Strategy 1: Develop Cancer Program Management and Organizational Structure
Appoint Interim Medical Director Finalize Job Description by Nov 2004Approval by Leadership Council by Dec 2004Identify and appoint Candidate By March 2005
Hire Administrative Director Finalize Job Description By Nov 2004Approval by Leadership Council by Dec 2004Finalize fit into the organization by Dec 2004Formal recruitment and hiring of Director by March 2005
Strategy 2: Improvements in existing services
Add IMRT to radiation therapy Obtain pricing for upgrade by March 2005Develop proforma to present to board by April 2005Order equipment by June 2005Training of staff complete by July 2005Begin treatments by August 2005
Sample Goal• The CEO and Medical Director will
hire a cancer program director by January 2006– End condition: director has been hired– Measure: person is on board– Time frame: January 2006– Accountability: CEO & Medical Director
The Planning ContinuumInformation Collection
Strategic Planning
Business Planning
Implementation
Adjust Direction & Goals with Experience
What is an “Action Plan”?• Take a “goal” to the next level of detail• Details all of the steps needed to achieve
the goals from start to finish, including:– what each step entails– who is responsible for each step– when each step must be done– how to measure & report progress
• Allows you to create an Implementation Plan
What is an Implementation Plan?• Each goal has an action plan• Action plans are usually created
independently of each other• The Implementation Plan puts all of the
actions plans together to assure adequate time and resources have been allocated
• Allows for a single monitoring of all goals
Sample Implementation Plan
ID Task Name1 Strategy 1: Develop Cancer Program Management and Organizational Structure2 Appoint Interim Medical Director3 Finalize Job Description
4 Review by Leadership Council
5 Identify and appoint Candidate
6 Hire Administrative Head7 Finalize Job Description
8 Review by Leadership Council
9 Finalize fit into the organization
10 Formal recruitment and hiring of Director
11 Finalize organizational chart and approve needed positions
12 Appoint Oncology Leadership Council13 Develop purpose statement, scope of responsibility and decision making authority, membership criteria, term limits, how appointed
14 Approval of Oncology Leadership Council by Leadership Council
15 Appoint Breast Centers Director 16 Develop revised job description
17 Recruit Director
18 Strategy 2: Develop model for effective integration of the oncology providers with all elements in the cancer care continuum19 Develop model for physician participation and integration in the cancer program20 Obtain agreement by medical oncology providers for their participation in the delivery model
21 Define Cancer Institute membership criteria and approve by Leadership Council
22 Develop Cancer Institute agreement
23 Obtain agreement by each medical oncology group/practitioner
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T W T F S S M T W T F S S M T W T F S S M T W T F S S M TJun 22, '03 Jun 29, '03 Jul 6, '03 Jul 13, '03 Jul 20, '03
How to Work with Internal Planners
• They understand you are the subject expert• Find out how much help they need from you• Find out how much help they can give you• Find out what format they use for data• Tell them where to find select resources• Learn how your program fits with others• Find out their priorities
How to Work with Consultants• Ask lots of questions - they’re
experts• Ask for help with everything• Tell them what you need – all
of it• Tell them how good your
data is• Communicate often• Assume nothing• Understand what they will &
won’t do
Thank youQuestions?
The Oncology Group, LLC222 West Coleman BlvdMt. Pleasant, SC 29464
Tel: 254-752-6727Fax: 928-962-3537