assignment no.2 - mst - 12 sept 2011

7/31/2019 Assignment No.2 - MST - 12 Sept 2011

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EXECUTIVE SUMMARY

The Johannesburg General hospital was built during the Apartheid era, providing qualityhealthcare to a privileged few in the country. With the birth of democracy, the majority

were now given access to this world-renouned healthcare facility. In addition the

success of the ANC at the national election meant a change in structure of staff in the

public sector, to be more representative of society. Furthermore, legislation promoted

the Affirmative Action policy, which resulted in placements not only being made on

achievements alone. This changing environment brought its own set of difficulties to

public institutions.

Analyzing the internal and external structure of Johannesburg General Hospital provided

insight into the myriad of forces creating a push-pull effect on the institution and its ability

to continue delivering exceptional healthcare. Strengths, weaknesses, opportunities and

threats highlighted the still prominent reputation and advanced skills offered by the

hospital. The growing impact of low staff morale and understaffing issues contributed to

the poor service levels reported in the media.

The new CEO, Sagie Pillay faced many ethical challenges, deciding to do what was

right was not a clear issue as there was some grey area. He battled not only with

having to restore Johannesburg General to its former glory but, had the added pressure

of ensuring ethically sound decisions. His decision-making process was further

complicated by the expectations of the numerous stakeholders internal and external.

Some stakeholders exercised their power and influence over the hospital, increasing

waiting times for outsourced machinery and the pressure of adhering to political policy.

Taking all this in his stride, Pillay embarked on a strategy that dealt with situations as

and when they arose, likening the hospital to a flag ship that could not be taken out to

repair and then put back. Most of his time was spent in crisis management mode.

There was no clear mission, vision and certainly no clear hospital strategy that staff

could strive towards.

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A brief interpretation and contribution is made as to what I would have done if one of the

managers deciding on a strategic initiative. The literature on strategic management is

rich with options and these were mentioned.

Taking the lessons learnt from this experience, I attempted setting up and information

sheet for new managers entering my current company, highlighting the process and of

strategic management.

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SECTION A

REPORT ONE

There is no formal mission or vision statement that points to the management strategy of

the hospital. Instead, one person has taken accountability for all management decisions

that are made in terms of services offered and the day-to-day functioning of the hospital.

All hospitals have a mission and vision which assist in ensuring adherence to the

strategy. Majority of the government health-care institutions in South Africa have to deal

with numerous crises as the promised access to decent health-care facilities are not

being realized.

In a bid to assess the hospitals internal resources, an internal analysis follows, the

structure of which takes on three methods;

1. SWOT ANALYSIS

2. RESOURCE BASED VIEW: CORE COMPETENCIES

3. THE VALUE CHAIN

Thereafter, an analysis of the external environment will be done as well. The approach

for this will be the:

1. PEST

THE INTERNAL ANALYSIS

SWOT ANALYSIS

STRENGTHS

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Johannesburg General Hospital has been in existence over a long period which hints to

its sustainability. It already has the physical infrastructure in place to enhance its

reputation as a leading health-care facility. There will be no need for any additional

building to be completed. In addition, the reputation of the hospital as a preferred

provider ensures that there is a steady stream of patients to supplement income, after

all, Dr. Chris Barnard made medical history internationally - when he performed the

academic hospital ensures that the treatment received is of a high standard and, is up to

date with medical and scientific advances.

WEAKNESSES

There seems to be a constant problem with the filling of available staff positions. As a

result, the hospital does not function as efficiently as it could due to the lack of staff.

This has the resultant effect of lowering the morale of the current staff. Staff are over

worked and underpaid. The pharmacy is especially drained as 12 pharmacists see up to

100 patients per day and in a bid to assist patients work overtime for which they are not

compensated. The problem is circular in nature as positions within the pharmacy are not

being filled due to the low compensation packages that are being offered and the long

hours required. As a result of the exodus of medical staff to the private sector, the

hospital employs doctors who have qualified abroad and are not trusted - as seen in the

increase of doctors from India, Pakistan and Zimbabwe.

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There is no control system in place to monitor financial spending as well as inventory.

The problems experienced with inventory range from the pharmacy, the bedding

required for the patients and the wastage of food. There are no mechanisms in place to

attach a value to the leakages of these resources within the hospital. In addition, the

process followed for the purchasing of required hospital equipment is unacceptable.

This function has been outsourced and takes months to be tended to let alone

completed. In the meanwhile, monies are being wasted as patients have to stay for

extended periods of time to ensure they have access to the machine when it arrives.

As a result of the lack of control procedures, there is no accountability or a sense of

responsibility by the staff.

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OPPORTUNITIES

With the qualified medical staff and the medical students from the University of the

Witwatersrand, Johannesburg General has the potential to become the leading

healthcare in South Africa. The case study of the hospital could also be used as a

learning curve for the public sector in evaluating what went wrong.

THREATS

Staff morale could threaten the day-to-day functioning of the hospital as employees fell

undervalued and unappreciated. The impression of being undercompensated could lead

to mass industrial action which could have the resultant effect of involving staff from the

entire public sector. Patients add to this by questioning staff qualifications and creating a

sense of entitlement as the staff salaries are paid by the taxpayers (patients).

The problem however with this kind of internal analysis is that while it studies the internal

strengths, it does not consider the external threats, like the creation of the NHI, would

Johannesburg General be in a position to handle even greater increases in patients.

While it provides us with a quick overview, SWOT is known for being static and can

resultant effect of ignoring changes. Pearce and Robinson also highlight the fact that a

strength is not necessarily a competitive advantage.

RESOURCE BASED VIEW

The RBV seems to pick up where SWOT departs in that is allows a more thorough

identification of the hospitals existing or potential competitive advantages. It does so by

investigating the tangible, intangible, skills and capabilities. Competencies are created if

resources are used well, thus creating a competitive advantage (Pearce & Robinson

2011).

Johannesburg General has a reputation for delivering excellent health-care and is able

to do so as a result of its qualified doctors who are academic staff at the medical school

at the University of the Witwatersrand. This ensures that all procedures and new

procedures are made available as the staff keep in contact with other local and

international universities.

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Unfortunately, the hospitals finances are not a worthy resource as it is constantly over

the budget and cash-strapped. The hospital does however have some of the necessary

equipment required, like x-ray machines and a laboratory. There is currently a back-log

which the lab in conjunction with the doctors is working on. It has been brought to the

attention of the doctors that they repeat requests for blood tests if a result takes too long

or if bloods are lost.

As mentioned previously, Johannesburg General Hospital has a favorable reputation as

well as a wealth of accumulated experience. Some of the doctors there have been at

the hospital since its inception. I have had a personal experience of this with my sister

who was diagnosed with leukemia at the age of 13. I frequently tagged along when she

went for her chemotherapy and was impressed with the level of care that she received.

We did have a scare though a few months later when the incorrect drugs were

administered and she stayed in hospital for 3 months. Till today my sister is now 44

she goes every 5 years for her check-up to Johannesburg General and I still recall the

praises my mom sang about the hospital that saved her daughters life. Another story I

recall is of a relative that had been in the ICU of a private hospital with the medical bill

escalating to over R200 000. At this point the family had to transfer him as he was not

on medical aid they were able to transfer him to Johannesburg General. Although my

relative died, Johannesburg General was honest and informed the family that he would

not last very long something we all appreciated. This highlighted the fact that private

medical care is not always the better option as the honesty and care received at

Johannesburg General far outweighed that received at the private hospital.

As mentioned in the SWOT analysis however, staff morale is low however; Mr. Pillay has

been able to pick this up by encouraging the staff to share in his vision for the hospital.

They have in addition, introduced the Hospital School for terminally ill children. When

they are well enough, they are allowed to attend classes, thus providing them with some

normal childhood experiences. This also assists in reducing the levels of depression

amongst these children.

As can be seen from the above, even though the hospital is facing a crises, it does offer

high levels of care to its patients. This care is critical to patients as it is the reason they

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come to the hospital, sometimes passing several primary healthcare institutions along

the way. In addition, while it tackles its financial woes, management has been able to

improve staff morale. The hospital thus has the potential to become even more

sustainable going forward with its current resources.

There are however some disadvantages to using this technique as only the resources

that are superior to those of other hospitals are regarded as valuable. What happens

when good care is scarce, it becomes more valuable and is something that cannot be

imitated. Most of the doctors providing the care are not inextricably linked to the

hospital, they lecture at the University and are engaged in other activities, and some

have practices in private hospitals as well.

On the other hand however, the RBV does allow the uncovering of organizational

capabilities and processes.

Strategic advantages specialized staff, knowledgeable, specialized technology,

hospital school

VALUE CHAIN ANALYSIS

This form of analysis looks at the processes as a chain of activities that creates valuable

outputs from inputs. Value is given when:

Differentiate product

Lower in cost

Meet need quickly

Pearce & Robinson 2011

The numerous activities along the chain in the hospital could be broken down into:

OUTPUT = receiving necessary medical attention must be quick, could be between life

and death.

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- Reception (manner in the way patients are welcomed and informed of

procedures)

- Clerk that captures information(know what questions to ask and what documents

are necessarily to have)

- nurses (manner in which they interact with the patient and assist where required)

- doctors (knowledge / treatment) how do they interact with the patient do they

follow ethical guidelines?

- The pharmacy already admits to having queues that are too long how is the

stock stored and labeled?

- food for those patients that stay

- bathroom facilities cleaning staff (ambience) cleanliness of bedding (laundry)

- upkeep of buildings

- suppliers of drugs and machinery

While useful in identifying the various processes involved in ensuring that the patient

receives quality care, it proves difficult when trying to attach a rand value to the process

which calls for the arbitrary allocation of costs. According to Pearce and Robinson

(2011) the time and energy to change is daunting.

Having looked at the internal analysis completed it become evident that while

Johannesburg General Hospital is experiencing a crisis (according to media reports) it

does have a great amount of value to add from the high level of care offered by qualified

staff. In addition, the hospital dies seem to have its feet firmly planted on the road to

change the processes that are currently not working, a progressive step in itself.

AN EXTERNAL ANALYSIS

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Pearce and Robinson define the external environment as the factors beyond the control

of the firm that influence its choice of direction and action, organizational structure, and

internal processes (2001: 81).

For the purpose of this analysis and as mentioned earlier, I will make use of the PEST

analysis, i.e. the Political, Economical, Social and Technological external influences on

the Johannesburg General Hospital.

Taken from www.learnmarketing.net

From the diagram provided it is evident that there is a circular relationship between the

factors mentioned, thus each impacts on the other and then on the hospital.

POLITICAL FACTORS

The ANC has come out in strong support of the NHI, which appeals to the majority within

South Africa. However, Reuters has noted that this will be funded by the taxpayers who

will be required to make a contribution to this fund over and above the contribution made

to their medical aid society. Discovery Health, the leading medical aid company in South

Africa has commented that they do not envision this happening in the new future,

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perhaps in the next 20 years. In the meanwhile medical costs will continue to escalate at

an alarming rate. In addition to the NHI, there is strong comments being made by

opposition parties regarding the state of healthcare in the public sector. Issues of

service delivery are being constantly discussed in the media and the healthcare crisis

does not escape media attention.

ENVIRONMENTAL FACTORS

The Johannesburg General Hospital has not been able to escape the media attention

regarding the disposal of medical waste. The waste was being dumped, polluting the

surrounding area.

SOCIAL FACTORS

The AIDS/HIV pandemic has resulted in about 5000 deaths per day in Africa, 16% of

those are from South Africa. All South Africans have become affected by this disease.

Johannesburg General Hospital has an HIV/AIDS clinic that is open only one day per

week for four hours. Those infected are expected to go to Primary Healthcare providers

for treatment. However, some do not have these PHPs in their immediate area. Society

at large is affected as we face a time of child run households, an astonishing increase in

the number of orphans and, a time where grandparents are becoming primary care

givers. This has placed all under strain as well as the state resources.

TECHNOLOGICAL FACTORS

There have been numerous advances made in the medical profession as far as

technology is concerned. There are a few previously invasive surgerys that are done by

machine, like hysterectomys which, results in a shorter hospital stay as all. Where

previously patients stayed for a maximum of 3 days, they can now be discharged after 1.

There are also advances being made in information technology systems that allow for

meaning inventory as well as patient control.

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REPORT 2

The definition of ethical behaviour is complicated by its applicability within a specific

environment and situation. What is deemed as ethical behaviour in one situation is not

necessarily accepted as ethical within another. Ethical behavior involves choosing the

correct behaviour, and sometimes, the correct behaviour is not the favored behaviour or

the one that is being sort after. A discussion on ethics includes values and morals, that

which acts as a moral compass within corporates and in our individual lives. The

question that needs to be answered is: will people do what is morally right? Such

dilemmas are tough when people are faced with conflicting challenges.

The South African history of Apartheid has permeated every facet of our society

location, education, employment, health-care highlighting the lack of access to basic

services. Segregation along racial lines meant that a particular race was favored in

employment, education and access to basic services. Access to these basic services

was reserved for the privileged and they were a few in comparison to the majority of

South Africans that were denied access. Education was segregated and a perception

created that certain races did not require an advanced level of education. Tertiary

educational institutions were not always an option as due to poor conditions of

employment, the need to be gainfully employed was deemed essential. There was agreat divide between the have and the have nots. As political unrest grew, South

Africans demanded social equality. After the phenomenal victory by the ANC at the first

democratic elections, the demand for social equality was a reality. Those from

previously disadvantaged backgrounds would be treated as equals to those who had

previously belonged to the privileged race. Being equals meant having access to all the

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services that were previously denied an equal education system, improved access to

tertiary educational institutions as well as being considered for employment based on

qualifications and equal access to health-care facilities.

With this in mind, Johannesburg General hospital management faced numerous ethical

challenges. Decent health-care was seen as a basic human right and there was an

explosion in terms of the number of patients that sought the hospitals services. Dr.

Cooper, head of pediatrics noted that where there were previously 200 babies born in

the hospital per year, there are now 10 000. Patient numbers increased in every section

of the hospital and the current staff compliment were not equipped to handle the load.

With the change in government, there was a call for racial transformation in the public

sector. Positions were filled with members of the previously disadvantaged groups, who

may not have had the necessary requirements Sage Pillay mentioned that the

assistant director controlled a budget of R750 000 000, equipped only with a matric and

no knowledge of the business world. Tough decisions had to be made with regard to the

employment of required staff as legislation had been passed promulgating Affirmative

Action. As a result of this, the previous inequality of employment ratios had to be

corrected and sometimes did not necessarily translate into the appointment of someone

with the required capabilities. In addition, Mr. Pillay had to bow to pressure from

government to employ from within the public sector and not the private sector. This

meant a delay in the employment process and resulted in Mr. Pillay having to make

decisions without any recourse or discussion. In the absence of legislation and a full

complement of management staff, Mr. Pillay made decisions based on efficiency alone

and often used this as motivation for the decisions made.

Mr. Pillay had been brought in to lead the restructure of the hospital and in doing so was

forced to make major financial decisions. Due to the lack of a reliable information

system it proved difficult to control finances, inventory and staff. The continuous budget

cuts by government meant that health-care decisions had to be made with the cost

thereof in mind. Mr. Pillay was tasked with the final decision and provides an example of

approving a R800 000 procedure for a hemophiliac patient that died 24 hours later.

Doctors primarily concern themselves with providing the best care possible without any

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regard for the costs involved and management is tasked with financial accountability. He

goes even further to state that he would need to search the internet to confirm what had

been said to him by doctors. There are those that would argue against a non-medical

professional running a medical institution as they would not be able to identify with the

task at hand, however, medical professionals are not groomed for management. Thus

the ethical dilemma of providing medical procedures is the responsibility of management.

It is also the responsibility of management to ensure that the staff within an organization

contributes to the strategy adopted. Staff morale was low in Johannesburg General and

even though this resulted in mass action for increased salaries and improved working

conditions, Mr. Pillay took it upon himself to remind the staff that they are civil servants,

there for the benefit of society and paid by the taxpayers of the country. While to some

this may seem callous, the reality is that Mr. Pillay was able to gain support for his vision

of the hospital by his actions. In addition to this, he was able to communicate with all

staff individually to ascertain the level of their contribution to the hospital which may not

have been received positively by the staff members.

Ideally, the hospital should have included an ethical code as part of its mission there is

no mention of this as Mr. Pillay made decisions in the absence of any formal decision-

making structure. The social justice approach to ethical decisions seems most

appropriate in this example as distributive justice ensures that no decision is made

based on arbitrary characteristics, such as race, sex, religion or national origin (Pearce

& Robinson 2011). In addition, the fairness principle would ensure that the hospital staff

adhere to the rules of the hospital incorporated into its mission and vision. Furthermore,

the natural duty principle would enforce Mr. Pillays reminder that staff are civil servants,

there for service to the patients in need of care.

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REPORT 3

Stakeholders are those persons who have a legitimate interest in the performance of the

hospital; furthermore they can be divided into internal and external stakeholders.

Internal stakeholders within Johannesburg General Hospital include all doctors, nurses,

kitchen staff, maintenance staff, administrative staff, management, patients, and the

pharmacists. Among the external stakeholders is the government, politicians, policy

makers, medical aid companies, suppliers and society as a whole. All stakeholders have

expectations of which management must be aware. With this in mind, the challenges

faced by Sagie Pillay included the dilemma of satisfying government with performing

within the budget provided and catering to the needs of the patients on a reduced budget

and without a full complement of staff. All decisions he made had to take the

stakeholders into consideration.

The case study presented does not mention a formal strategy for the hospital, but, does

mention Sagie Pillays vision of making employees more accountable. He mentions that

staff had been given power, but did not know what to do with it. This however can be

seen as the disadvantage of not having the hospital strategy; rather, Mr. Pillay stated

that decisions were made in terms of the level of efficiency that would be achieved

based on the decision taken.

I would think that the patients are his major stakeholders as they seek the services of the

hospital on an ongoing basis. The challenge however is as alluded to above, with a

reducing budget, how can Mr. Pillay assure patients that they will receive the care that

they need. In addition, Department of Health had made it clear that the Johannesburg

General Hospital was to function as a referral hospital. Patients would thus first make

contact with a primary healthcare provider, at which point they would be referred for

specialist attention. How would he inform the patients that no walk-in patients were

allowed to make use of the hospitals services any longer. In addition, these are the very

patients that had previously been denied access to healthcare services. Other

stakeholders, such as staff members also posed a challenge, yes morale was lifted but

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employed which in turn resulted in the feeling that he was not delivering on what he said

implement it, thus staff saw no difference in their workplace environment.

Some of the non-obvious stakeholder that were not mentioned in the case study are

politicians. The NHI discussions have been ongoing over a number of years and while

Discovery Health believes it will be about another 20-years prior to it being implemented,

politicians, as we near an election year could rally for the NHI to be set-up immediately.

This would affect the decisions made with regards to staff requirements as the NHI

would translate into an increased budget for the hospital which, would allow the

numerous empty positions to be filled. Aside from the NHI, politicians could exert their

influence for a speedy transformation of the hospital to resolve the crisis it is currently

experiencing - again, to ensure support of the patients at election time. The turnaround

in the hospital will be seen as the work of the ruling party, thus creating the perception

that they do deliver.

Additional stakeholders that could affect the finances of the hospitals are suppliers of

drugs and technological equipment. Pharmaceutical companies although not

mentioned, could increase their prices of necessary medication thereby adding more

pressure to the already strained budget. The purchasing of technological equipment is

outsourced, so the hospital has no control over the prices paid and are thus excluded

from the process. This hampers the management process as there is no control over

the amount that is being spent.

From the short discussion above, it is evident that the decision-making process is not

clear-cut. All stakeholder interests need to be considered as a result of the influence

and power they have.

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REPORT 4

Most of the literature consulted for this report all agree, the only constant isCHANGE.

Bearing this in mind I would still suggest that the hospital formally present their Mission

and Vision, i.e. their working strategy. The strategy would always espouse the purpose

of the services offered and the way in which the hospital will deliver these. This would

result in all staff working towards a common strategy and an improved public image as

the hospital would not be viewed as a disjointed entity, rather, it will be come to be seen

as an integrated organization with a clear plan of where it is going.

In addition, given the fact that the hospital has no control over the National Department

of Health, the hospital could embark on an advertising campaign making patients

aware of the processes to be followed when seeking access to healthcare. This will also

educate patients on serious conditions allowing them to distinguish between the need for

primary or secondary healthcare. It would then be made known that the Johannesburg

General hospital is a specialist institution to which patients are referred.

Once this process has been completed, the hospital can concentrate on operational

excellence, focusing on an efficient organization. By reducing overhead expenditure,

medical staff would be able to received increased compensation, perhaps a bonus. This

in turn would ensure that the specialist medical professionals, academic staff and

medical students remain in the public sector and do not defect to the private sector. The

competitive advantage here being the specialist medical staff and the continuously

growing knowledge that they have. With the envisioned drop in patient numbers, the

hospital will be better able to promote patient intimacy. The staff will thus respond to

patient needs quicker. In a bid to become the leading tertiary healthcare provider, the

hospital could strive to become the product leader for new medical procedures.

As the hospital is enveloped in an environment consumed by change, I believe that one

of the best-long term strategies would be a turnaround. Turnaround, as defined by

Pearce and Robinson (2011:199) is a grand strategy of cost reduction and asset

reduction by a company to survive and recover from declining profits. Although the

bottom line is not the only major concern for the hospital, cutting costs is. Therefore,

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management would need to embark on a process to reduce costs by either leasing the

extremely expensive medical machinery or reducing the numbers in the staff

complement. With the reduction in the number of patients, there could be certain

processes along the value chain that could be shortened or removed altogether.

Management will also need to be changed, it seems that while Mr. Pillay had been

tasked with the hospital re-structure, he had not been able to fulfill this responsibility due

to political and government blocks. New management is required that will come in and

implement the needed changes. Strategic management literature shows that companies

using this grand strategy are able to successfully overcome the period of decline. The

hospital will be given the opportunity to recover from the downturn and provide

innovative products into the future.

The future therefore seems promising for the Johannesburg General Hospital, however,

without these changes, its future is bleak.

How can these changes be implemented?

All strategic changes must come from the top-down. The initial process will start by

consultation with all staff members. This will ensure that their vision for the hospital also

considered. I would ensure that a task team is set-up with a mandate to ensure that all

departments are represented within the team. Each team will be kept informed of the

changes through their representative. By encouraging staff support for the processes, a

sense of identity and belonging with the new hospital strategy.

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SECTION B

Introduction

Do you wonder where our group or community will be in five years?

How will we be affected by:

environmental trends?

reduced resources?

new demands of members, clients or residents?

Strategic planning is the answer as the process can guide you towards where you would

like to be in the future versus having to deal with situations as they happen.

What Is Strategic Planning?

Strategic planning is a tool that any organisation can use to proactively plan their future.

Strategic Planning - a Process That:

examines where our organization is now, where you want it to be, and how you

are going to get there

involves our external community

creates a flexible plan of action that is drawn up with internal participation as well

as external input

allows for a focus move forward

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encourages analytical thinking

responds to change by dealing effectively with it

the decisions made take cogniscience of the organizations external environment

encourages the actioning of priorities

Strategic planning is not:

a once off deal

a set of tricks

a quick-fix solution to solving immediate problems

a process that can be ignored or left unimplemented

Besides long-term planning, strategic management -

researches and analysis possible environmental changes

is not a one-man band, it encourages participation by all involved

welcomes new paradigms

The Benefits Of Strategic Planning

By carrying out strategic planning our company will:

be powerful and influential

clarify our role

deal positively with the constant of change

address critical issues

encourage innovation to attain goals

move away from crisis management

allow for continuity during times of change

efficiently and effectively use available resources

look to the future

gain commitment to ensure that the employees work towards upholding the

company strategy

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Who Uses Strategic Planning To Plan For Their Futures?

municipalities

businesses

hospitals

communities

industries

corporations

government

school boards

colleges

town councils private sector societies

agencies

institutions

boards

local & provincial organizations

non-profit interest groups

Step 1 - Planning The Strategic Process

Assessing the Need For Strategic Planning

Do you answer yes to any or all of the following questions

are you concerned about your future performance?

is the company losing money and appeal to its customers?

is staff resigning to join similar companies?

Strategic planning may not be appropriate if the company lacks:

leadership, training or skills

commitment to the process

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time, money or other resources to carry out the process

or has difficulty with:

key individuals program or policy implementation

poor relationships among the players

Understanding and Gaining Commitment to Proceed with Strategic Planning

include all in the planning phase to ensure ownership of the strategy due to

contributions made

outline the strategic planning process, role of participants, time commitment, costsand benefits

spend time with all levels within your group to get the commitment to go ahead

Setting up a Strategic Planning Team

Selection

optimal working group size is nine to 12 people

ensure all perspectives / divisions are represented

identify all stakeholders

Communications

must be periodic all members must be kept informed

Step 2- Creating Your Future

Developing a Vision for Your Future

Visioning allows our planning team to decide how we want our organization to be

perceived in the future.

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Developing a Mission Statement - note our Vision statement above!

The mission statement:

is an action statement that outlines the preferred future of your organization establishes what you plan to do, for whom

reflects our group's values, culture and philosophy

acts as a focal point against which all plans or directions are checked

evolves

Step 3- Assessing Current Situation

Strategic Analysis

Strategic analysis is an in-depth look at all the factors likely to have the greatest impact

on the future of our company. It involves gathering data and facts from a variety of

sources and confirming that this information is accurate. Other components include:

Identifying Strengths and Weaknesses

identify the strengths and weaknesses that are within the control of the

organization (e.g., reduced operating capital, low membership or staff numbers,

skilled executive, open communication networks)

discuss effects it may have on the ability of the group to accomplish its mission

Identifying Opportunities and Threats

identify the outside influences over which we have little control; political/legal,

economic, social/cultural and technological factors

may include new government policies, fragmented markets, changing lifestyles,

activities of competitors

explore how these will relate to our mission

Identifying Critical Issues

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arise from the identified strengths, weaknesses, opportunities and threats

are positive or negative issues that will impact on our future

must be addressed as these could hamper strategy implementation

Step 5 - Planning For Action

To put our strategic plan into action it is necessary to:

develop innovative approaches to accomplish our strategies and ensure a fit with

our mission

divide the proposed activities into manageable tasks

include what you will do, who's responsible, what resources are needed (time,

money, expertise), when they will be done, how progress and success will be

measured

Step 6 - Implementing / Evaluating The Plan

TO DO LIST to ensure the plan gets implemented:

set your activities in order of priority and establish time frames over the short- and

long- term establish an implementation committee. Delegate tasks to current or new

committees

use your mission statement as a marketing tool to promote your cause or group

determine who will monitor your progress in accomplishing your strategic plan

review the progress of the plan

continue to implement, review and evaluate the plan on an on-going basis

As mentioned, strategic management is an on-going process that allows for flexibility

and change.

On a personal note, I had always thought that only management should be involved in

the creation of the company Vision and Mission statements. The Vision Statement

provided here was simply hung up on our wall at the beginning of this year, with no

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consultative process. The material on strategic management created a sense of

excitement and to a certain extent showed me that I need to move on from my current

position as administration manager in order to make use of the knowledge I have. I

had always thought that strategic management was reserved for the extremely gifted

and not something that one could theorise on, this blind-spot has certainly been removed

and provided insight to my capabilities and abilities that, like strategic management,

continue evolving.

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assignment no.2 - mst - 12 sept 2011

Documents