Strategic planning as used by chief executive officers

In summary, the interviews obtained from this study suggest that CEO's in a variety of industries are attempting to "fit" their strategic planning process to their perceived environmental conditions. Indeed, management thinkers believe the biggest challenge in strategic planning will be turning CEO's into true strategic thinkers. The most successful companies, ultimately, will make strategic planning a high priority and involve all levels of management in the process. Planning becomes the unifying force that directs company actions. Hospital CEO's are obviously becoming more aware of this point as they strive to include all relevant parties (boards, physicians, etc.) in the process. Further, they seem to view planning in the classical sense, that is, as a dynamic, ever-evolving cyclical process more so than their general industry and academic contemporaries. Those hospitals that do develop strategic planning and strategic management have a definite advantage over competitors. Priorities are set and objectives are validated. This, in turn, improves productivity and creates the necessary framework for controlled growth. In addition, planning promotes teamwork and heightens motivation, bringing managers and employees together not only to meet but to exceed company goals.

Managing outcomes: the perspective of the players

Outcomes management is most deeply rooted in clinical issues that interrelate concerns about quality with cost effectiveness of care. This is ground-breaking activity from many perspectives. Researchers must work more closely with clinicians and decision makers than ever before. Hospital executives must contend with many new external data demands and determine how to operationalize outcomes management programs within their institutions. There are new roles for clinician executives who act as change agents within health care organizations, while data on outcomes of care can lead to increased bargaining power among purchasers of services. In this article we discuss the major implications this new focus on managing outcomes is having on researchers, hospital executives, clinicians, and the purchasers of health care services.

CEOs: well-informed reporters can be powerful hospital allies

Working with the news media to achieve accurate, fair reporting on one's hospital can be a time-consuming chore, but CEOs say the effort is well worth it. Sometimes, even crisis-mode media management can have its upside.

New facility builds on experience

Combining two older hospitals into one centralized facility requires consummate planning on the part of administrators, architects and outside consultants. When Delnor-Community Hospital in Geneva, Ill., opened the doors to its $38 million facility in August, it was the culmination of at least five years of planning. In the following interview with Health Care Strategic Management's Donald E.L. Johnson, Craig Livermore, Delnor's president and CEO, discusses the construction and planning needs of this new 118-bed institution.

CEO holds keen observer role. Interview by Donald E.L. Johnson

What tactics does the successful head of a hospital system use to keep that system in check? How does that chief interact with his or her board in running the individual institutions? In the following interview with Health Care Strategic Management's Donald E. L. Johnson, David A. Reed, president and chief executive officer of the St. Joseph Health System, a system with seven acute care hospitals in California and Texas, affiliations with additional institutions and numerous other HMO and insurance ventures, discusses developing rapport with key players as well as creating a strategic plan.

CEO-MD ties focus for future

Now more than ever, hospitals and physicians must work closely if both are to succeed in the future. This is just one conclusion, if not the most important one, of a recently released study by the American College of Healthcare Executives and Arthur Andersen and Co., reviewed in this issue.

[The role of the medical director as manager of health centers]

In this review the role of physicians in management position of health services in Spain is analyzed. Araising from the high rotation rate in these positions, the experience and reports of foreing countries are reviewed. Finally, the functions of a medical director in a management team are defined. Also, the need of their influence on the profile of services an professional curricula in order to ensure continuity are discussed. Training is the key element for continuity and stability of medical directors in health services management teams.

Case two. Development of a strategic plan and the planning process at a medical center

In 1983, the medical center had no strategic planning process and no individual or department with an identified responsibility for planning to meet the needs of the organization and its service community. There were limited resources to apply to this endeavor and a prevailing attitude among current leadership that any planning done should be focused solely on facilities development. While the process pursued in this case is similar to that in Case One, unlike Case One, conditions within the organization are less than ideal for the implementation of any process, formal or informal, for the formulation of strategy. Read alone, the case is instructive. Considered in combination with Case One, it provides grist for a good discussion of the differences between organizations which have the capacity to be strategically managed and those which have learning to do.