Strategic Management for Health Care

Abstract

The word strategy has “Greek” origin, which is a combination of two words, “stratos” and “aeiges”, which means art of employing battles in the battlefield. Strategic management was a term which was first used in the military and later found an implication in the business sector, as well as a relevance to the development sector, particularly for organizations in education, government, and health care. There are several benefits of strategic management. Many studies have reported that strategic management improves long-term financial performance of an organization. Strategic management imparts a self-image, desired public image, specific goals and objectives, long-term vision and mission, and consistency in decision-making to the organization. Overall coordination is improved, innovation is fostered, and efficiency is increased. This chapter will focus on the framework of strategic planning which is comprised of situational analysis, setting mission, vision, goals and objectives, strategy formulation, strategy implementation, strategic monitoring, evaluation and control, handling strategic contingencies and change management. Development of organizational culture, ethics, and values is a very important function of organizational operations. Culture is often an invisible thread that binds the organization together. Strategic development of organizational culture will be captured at the end of the chapter. The examples  from healthcare sector have been used to elaborate the concepts.