Several scholars highlight the significance of planning in helping an organization to achieve increased revenue and good governance (Parayitam, Phelps & Olson, 2007). If a healthcare organization was to formulate and implement a comprehensive strategic plan, it would achieve several milestones within five years. A crucial implication of such a strategic plan would be helping the organization achieve relevance in the healthcare industry. This is because strategic plans help an organization forecast future market trends and prepare adequately to cope with them.
Strategic planning and management would help a healthcare organization gain a competitive edge in the market. This is because the principles of strategic management are relatively new to the healthcare industry (Parayitam, Phelps & Olson, 2007); hence, organizations which embrace these principles will experience better governance systems than those who do not.
Healthcare organizations need to be proactive rather than reactive in their decision making. A carefully formulated and implemented strategic plan would ensure that the organization uses a proactive approach while dealing with emerging problems. This would reduce the level of uncertainty and risks involved when dealing with such problems.
The rapid development of new technology is a significant milestone of both the 20th and 21st Century (Parayitam, Phelps & Olson, 2007). A strategic plan would ensure that the healthcare organization is up to date with emerging technology. This is essential since new technology helps create a competitive edge for whichever company adapts it first.
A strategic plan would be beneficial to the internal environment of the healthcare organization. Motivation scholars indicate that employees are more motivated to achieve objectives that are clearly outlined than when working towards generalized and vague goals (Parayitam, Phelps & Olson, 2007). A well motivated human resource team would help the healthcare organization create a service culture that would foster customer satisfaction. This would result in an increased number of repeat customers for the health organization; as a result, the organization’s market share would increase.
The formulation and implementation of a strategic plan is a vital process for any healthcare organization. This is because a strategic plan helps the organization gain a competitive advantage, reduces uncertainty, increases adaption of new technology and helps in motivating the employees.
References
Parayitam, S., Phelps, L. and Olson, B. (2007). Strategic decision-making in the healthcare industry: the effects of physician executives on decision outcomes. Management Research News, 30(4), 283 - 301
