Importance and Benefits of Strategic Management in HCO’s

Published on LinkedIn Website March 12,  2015

Organizational strategic management process refers to the continuous planning, monitoring, analysis, and assessment that are necessary to meet its goals and objectives successfully. Strategic, managerial decisions and actions are critical to determining the organizational long-run performance and require constant monitoring for any external changes, opportunities or threats. It is a formal stepwise process that includes first, environmental analysis to understand the current position of the organization, then strategic planning, formulation, or choices for making important strategic decisions, and finally strategic implementation to translate strategy into action and beyond. Health care organizations operates in a dynamic environment that is changing unpredictably and thus creating many challenges for the health care providers to deliver and maintain the delivery of quality health care services. It is imperative for the health care organizations to be able to develop and implement strategic planning’s to take advantage of any changing environment. Health care organization with strategic management processes are always more successful than those without. Through strategic organization planning, health care organization can take advantage of the available opportunities that offers clear purpose, support, resources, and commitment and overcome the challenges successfully to maintain smooth business operations. Other benefits include improved decision-making, setting priorities, focus energy, resources availability, encouraging staff members to take an active role and motivation. Strategic management process can also help the organizations to establish new objectives or directions to bring in necessary changes to be in compliance with the external regulatory requirements and maintain customer satisfaction at the highest level. Such benefits are making the strategic management process an essential element for every health care organization to sustain and maintain smooth business operations in the long run.

Roohul Amin MHA, MD, ARMA

Manager at Cancer Center Associates