The long-term profitability of healthcare organizations depends on excellent strategic planning. According to Rasouli et al. (2020), strategic planning refers to a process in which a business entity determines its future direction and highlights all the steps necessary in shaping it. In excellent strategic planning, leaders involve all the healthcare system stakeholders in positioning the organization for success in an uncertain environment.
Business strategies are important for the survival of organizations in uncertain business environments. Strategic planning in the healthcare sector helps to improve the quality of services delivered, reduce costs while ensuring the healthcare services are accessible. In defining and improving the weaknesses in the healthcare setting, strategic planners gather significant information about the external and internal environments, which is followed by detailed discussions about the organization's future (Kabeyi, 2019). Additionally, the strategic planners develop practical objectives, as well as techniques to help in assessing the ongoing performances in the healthcare organization.
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Strategic planning at the corporate level involves the top management in a diversified organization. Therefore strategic planning at the corporate level involves, describing the organization's direction concerning its product lines and businesses (Varkey & Bennet, 2010). At the organizational level, strategic planning involves defining the basis on which the particular business organization will compete in an uncertain environment. Thus, as a way of strengthening the business' competitive advantage, the senior managers at the organizational level emphasize the need to expand their services to increase their customers.
Strategic planning at the division level aims at maximizing resource productivity. A healthcare organization that seeks to expand its services, needs a production strategy that emphasizes increasing the types of services delivered. At the unit level, an operating strategy is developed to help in the achievement of the immediate objective, which is expanding services as a way of gaining a competitive advantage. Therefore, expanding services at the healthcare organization requires strategic planning at various operating levels.
References
Kabeyi, M. (2019). Organizational Strategic Planning, Implementation, and Evaluation with Analysis of Challenges and Benefits for Profit and Nonprofit Organizations. International Journal of Applied Research and Studies, 5(6), 27-32.
Rasouli, A. et al. (2020). The Importance of Strategic Planning and Management in Health: A Systematic Review. Journal of Health Management and Informatics, 7(1), 1-9.
Varkey, P. & Bennet, K. (2010). Practical Techniques for Strategic Planning in Health Care Organizations. Physician Executive, 36(2), 46-48.
