Deck 21: Tools for Strategic Analysis, Planning, and Management

Question 1

Think about the various analytical tools you have learned about in this chapter, in other parts of the book, and in jobs you may have held. Name three of those tools that you understand and that you are most likely to use in your work in the future.

Answer 1

$\bullet$ Value Chain Analysis
$\bullet$ Benchmarking
$\bullet$ Best Practices
$\bullet$ SWOT Analysis
$\bullet$ Future Search
$\bullet$ Root Cause Analysis
$\bullet$ Michael Porter's Five Forces Model for Industry Analysis
$\bullet$ Scenario Planning
$\bullet$ Wargaming, Simulations, and Role Plays
$\bullet$ Boston Consulting Group (BCG) Growth-Share Matrix
$\bullet$ Six Sigma
$\bullet$ Balanced Scorecards
$\bullet$ Force-Field Analysis

Question 2

A value chain analysis can be used for several purposes. What information can an organization learn from an analysis of its value chain and how could it use that information.

Answer 2

$\bullet$ Several pieces of information are gathered-the amount of value created by the activity, the resources consumed by the activity (particularly the financial costs), and interdependencies between the activity and other activities.
$\bullet$ The analysis looks for ways to modify activities to improve their value-generation capabilities, such as redesign the activity, expand its scope, reduce its scope, reposition it in the value chain, replace it with another activity, combine it with another activity, or eliminate it entirely.

Question 3

You are the business manager for 10-physician group practice that wants to transition to becoming a "concierge practice". To succeed in this new format, it would like to learn the "best practices" of other physician groups offering medical care in this way. Where would you start to look for this kind of information? How would you evaluate what you learned and apply it to your current practice?

Answer 3

$\bullet$ Look for relevant information from professional associations (AMA), trade groups (MGMA, AGMA), public announcements by comparable organizations, published articles in industry journals, and vendors, patients, and the media.
$\bullet$ Validate the data obtained to establish its accuracy and completeness; normalize between the two organizations.
$\bullet$ Describe, preferably quantify, the gaps between the organization's performance of the activity and the best practices of the target entities, and make activity improvement recommendations that will close the gaps.
$\bullet$ Measurable goals are set for changing the activities, closing the performance gaps, and establishing new, higher standards for the activities. To achieve the goals, develop and implement a formal, detailed action plan with deadlines, individuals responsible, managerial support, and sufficient resources.

Question 4

Pick any organization you are familiar with. It could be the school where you are studying health care management. Do a quick and dirty SWOT analysis of the organization. Come up with two examples in each of the four categories: strengths, weaknesses, opportunities, and threats.

Question 5

Describe three health-related issues or problems that would be good subjects for a root cause analysis.

Question 6

Identify the forces in Michael Porter's Five Forces Model for Industry Analysis.

Question 7

The Boston Consulting Group (BCG) Growth-Share Matrix portrays a corporation's portfolio of strategic business units (SBUs) or products in four cells - stars, cash cows, question marks, and dogs. For what purposes might a strategic planner use this tool?

Question 8

Briefly explain what a force-field analysis displays and its uses in strategic planning and implementation.