1st Edition

Essentials of Healthcare Strategy and Performance Management A Practical Guide for Executives and Emerging Leaders

    226 Pages 26 B/W Illustrations
    by Productivity Press

    226 Pages 26 B/W Illustrations
    by Productivity Press

    Leaders and healthcare organizations, and students aspiring to become one, should be asking themselves one thing in these financially challenging times: how can they maintain a strategic and competitive advantage over other players in their market? Some healthcare organizations have faced extremely poor financial performance in recent years, with data suggesting that up to 10% of hospitals will go bankrupt or face closure within the next 10 years. Yet, little pragmatic evidence exists to offer insights into how to create better strategies to improve performance, build resiliency and align stakeholders.

    Essentials of Healthcare Strategy and Performance Management explores the most critical components of business strategy and performance management for modern, complex healthcare organizations. Using pragmatic and real-world evidence, this book provides essential briefings on key topics that every current or aspiring leader needs to know in order to better manage strategy and achieve improved performance in their hospital or health system. We will also specifically focus on implementation of strategy, and best practices for some of the most important quality management techniques. We hope this book helps inspire leaders to be creative in formulating more effective competitive strategy.

    Part I: Strategic Thinking. 16

    Chapter 1. Strategy and Competition. 17

    The Need for Strategic Thinking. 17

    Defining Strategy. 17

    Competitive Strategy. 21

    Strategy as Practice. 23

    Results Orientation. 25

    Strategic Intent 27

    Chapter Summary. 29

    Discussion Questions. 29

    Key Terms. 29

    References. 30

    Chapter 2. Strategic Decision-making. 31

    Becoming More Strategic. 31

    Defining Success. 31

    Strategy and Leadership. 33

    Predict and Anticipate. 33

    Challenge Existing Mindsets. 33

    Synthesize and Interpret Confounding Information. 34

    Seek Alignment within the Organization. 34

    The Limits of Rationality. 35

    Strategic Decision-making. 36

    Re-Framing Decision-Making. 40

    Steps Toward Strategic Decisions. 43

    Discussion Questions. 45

    Key Terms. 45

    Chapter 3. Strategic Intelligence. 47

    What is Strategic Intelligence?. 47

    Strategic Intelligence Framework. 49

    Intelligence Parameters: Defining Intentions and Framing the Objectives. 49

    Conducting Intelligence Research. 51

    Analyzing the Data: Making Sense of the Information. 53

    Recommend and Monitor 58

    Chapter Summary. 60

    Discussion Questions. 61

    Key Terms. 62

    References. 62

    Chapter 4. Strategic Planning. 63

    Strategic Planning. 65

    Preparation. 66

    Incorporate Intelligence. 67

    Assess the External Environment 67

    Assess the Internal Environment 69

    Conduct a SWOT Analysis. 69

    Generate Strategic Alternatives. 71

    Flawlessly Execute. 71

    Planning Tips. 72

    Chapter Summary. 73

    Discussion Questions. 73

    Key Terms. 74

    References. 74

    Chapter 5. Strategic Data Analytics. 75

    Strategic Analytics. 76

    Analytics for Strategic Planning. 79

    Using Data to Perform a Healthcare Environmental Assessment 89

    Population. 95

    Use Rate. 97

    Market Share. 98

    Using Data to Perform an Internal Assessment 101

    Chapter Summary. 105

    Discussion Questions. 105

    Key Terms. 105

    References. 105

    Part II: Strategic Leadership. 107

    Chapter 6. Leadership. 108

    The Evolution in Leadership. 108

    Leadership Styles. 109

    Qualities of Good Healthcare Leaders. 111

    Importance of Leadership Development in Healthcare. 114

    Challenges faced by Healthcare Leaders. 115

    Driving Innovation. 117

    Chapter Summary. 118

    Discussion Questions. 119

    Key Terms. 119

    References. 120

    Chapter 7. Leaders as Entrepreneurs. 121

    How Leaders Choose. 121

    Creating an Optimistic and Story-Based Culture. 123

    Entrepreneurial Thinking. 126

    Intrapreneurs Unlock Innovation Internally. 128

    Benefits of Being Entrepreneurial 129

    The Leadership Challenge. 129

    Overcoming Challenges and Building a Culture of Innovation. 130

    Chapter Summary. 131

    Discussion Questions. 131

    Key Terms. 132

    References. 132

    Chapter 8. Governance and Boards. 134

    Governance Basics. 134

    Governance Roles. 135

    Building Better Boards. 136

    Six Factors that Create Better Board Governance. 137

    Chapter Summary. 141

    Discussion Questions. 141

    Key Terms. 142

    References. 142

    Chapter 9. Growth Strategies. 143

    Three Forms of Growth. 143

    Strategic and Economic Analyses. 145

    Transition Plans. 147

    Integration. 148

    Growth Strategy. 149

    Rationale Behind Mergers and Acquisitions. 150

    International Growth. 151

    Motivations and Intent behind International Growth. 152

    Chapter Summary. 153

    Discussion Questions. 154

    Key Terms. 154

    References. 154

    PART III: Strategic Execution. 156

    Chapter 10: Flawless Execution. 157

    Putting Strategy into Action. 158

    Leaders Define Success in Practical Terms. 158

    Leaders Set Challenging Goals and Monitor Progress. 159

    Leaders Recruit and Empower the Right People. 160

    Leaders Build Alignment 161

    Leaders Reward Their Team.. 162

    Leaders Remove Obstacles. 162

    Leaders Adapt When Necessary. 163

    Project Management 164

    Chapter 11. Managing Performance. 168

    Toward Operational Excellence. 168

    Performance Management 168

    Healthcare Strategy and Performance for Non-Profits. 171

    Performance Framework. 173

    Change versus Improvement 176

    Performance Management Basics. 177

    Performance-Based Planning. 177

    Goal Setting. 180

    Case 11.1 Hanes Hospital 181

    Benchmarking. 183

    1.     Identify Problems and Gaps. 184

    1.     Research and Identify Best Practice Organizations. 185

    1.     Prepare for Benchmarking Visit 186

    1.     Conduct Site Visit 188

    1.     Adopt and Integrate Best Practices. 188

    Guidelines for Performance Management 188

    Define Success More Carefully. 189

    Measure Historical Performance. 189

    Forecast Desired Improvement Target 190

    Don’t Let Benefits Leak Out 190

    Chapter Summary. 191

    Discussion Questions. 191

    Key Terms. 192

    References. 192

    Chapter 12: Managing Organizational Quality. 193

    Introduction. 193

    Quality. 193

    Quality Management 198

    Core Components of Quality Management 200

    Planning, Control, Improvement 202

    Need for Healthcare Improvement 203

    Performance Improvement 205

    Summary. 208

    Key Terms. 209

    Discussion Questions. 209

    References. 209

    Chapter 13: Continuous Performance Improvement 212

    Introduction. 212

    Quality Measures. 212

    Structural Measures. 213

    Process Measures. 213

    Plan-Do-Check-Act 215

    Six Sigma. 216

    DMAIC.. 217

    Managing Defects. 219

    Process Capability Index. 221

    Six Sigma Benefits. 221

    Lean. 222

    Lean Versus Six Sigma. 223

    Theory of Constraints. 225

    Process Modeling. 226

    Other Tools and Techniques. 230

    Chapter Summary. 231

    Discussion Questions. 231

    Key Terms. 232

    References. 232

    Chapter 14: The Practice of Strategy. 233

    Bringing it All Together 233

    Becoming a More Effective Healthcare Leader 234

    Chapter Summary. 237

    Discussion Questions. 237

    Key Terms. 237

    References. 237

    Glossary of Key Terms. 238

    About the Author 252

    Contributing Authors. 253

    Biography

    Dr. James Langabeer is an experienced healthcare professor and leader, passionate about creating and innovating strategic and efficient healthcare systems. Trained as a behavioral decision scientist, he is a prominent researcher in strategic and operational decision-making. He is also the Managing Partner of Yellowstone Research, an independent consultancy providing healthcare strategy consulting, and a clinical leader and tenured Professor at the University of Texas Health Science Center at Houston. His thoughts have been featured in Oprah, Forbes, MoneyGeek, Texas Monthly, NBC, Fox, CBS News, and NPR among others, and he has published well over 100 peer-reviewed journal articles and 7 books. He is a former national Chair of the American Heart Association Ambulatory Quality Committee, and sits on multiple healthcare advisory boards. He holds a PhD in Management Science from the University of Lancaster in England, a Doctor of Education in leadership and organizational psychology from the University of Houston, an MBA from Baylor University, and he has achieved Fellow status in HIMSS, ACHE, and the American Heart Association.