How to carry out strategic management in private hospitals
Strategy is the planning and strategizing of the overall situation of a war, and strategic management can be defined as the formulation, implementation and evaluation of measures and strategies that enable an organization to achieve its overall objectives. Its purpose is to create a unique and advantageous positioning for the organization to compete successfully with its competitors, to meet customer needs, to achieve superior performance, and to achieve organizational goals. Here is my knowledge of how private hospitals conduct strategic management, welcome to read.
Hospital strategy
Hospital strategy is the hospital in the face of intense changes in the business environment put forward by the serious challenges, in order to seek long-term survival and continuous development and the overall planning. This planning focuses on creating the future of the hospital from a global perspective. Hospital strategy is based on a correct analysis of the internal and external environment of the hospital, recognizing the existing strengths and weaknesses of the hospital, the face of opportunities and risks, selection, determination of the hospital's overall goals and objectives to achieve the policy and strategy.
Hospital strategy has different levels, can be divided into: overall strategy, business strategy, functional strategy.
Overall strategy is the highest level of hospital strategy. It is based on the objectives of the hospital, choose the hospital's business field and development direction. From the direction of the hospital's business development to the coordination of hospital departments, from the utilization of hospital tangible resources to the establishment of hospital values, cultural environment, etc., are important elements of the overall strategy of the hospital. From the nature of its formation is related to the overall development of the hospital, holistic, long-term strategic behavior; from the formation of personnel involved in the strategy, mainly hospital senior managers; from the impact on the development of the hospital, and the hospital's sustainable development is closely related.
Business strategy is the strategy of the hospital's business operating units. Business strategy is under the guidance of the overall strategy, the specific section of the business plan and strategy. Business strategy focuses on the local strategic issues of specialized departments, related to a specific service and market, to a certain extent, affecting the realization of the overall strategy of the hospital.
Functional strategy is the strategy of the hospital's functional departments. It is the hospital's functional departments to create and effective use of research and development, medical services, financial operations, human resources and other aspects of the mechanism and strategy to ensure the realization of the overall objectives of the hospital. Functional strategy focuses on the hospital's business objectives, relevant planning, proposed goals to achieve specific measures and plans to promote and ensure the realization of the hospital's strategic objectives as scheduled.
Strategy development must be updated as a prerequisite
The statement of the purpose of the hospital is to formulate the basis of hospital strategy and the starting point. The purpose of the hospital to answer the question "Why does the hospital exist? What does the hospital do?" The question. Hospital purpose is the centralized embodiment of the hospital's business philosophy. In the socialist market economic system, the hospital business philosophy mainly includes the following seven new ideas.
Customer concept: With the fierce competition in the health care market, the buyer's market for medical services has gradually formed, the patient's requirements for medical services are getting higher and higher, and the choice of hospitals is getting stronger and stronger. Therefore, the hospital should establish the concept of patient first, all patient-centered.
Quality concept: establish the concept of quality is the life of the service, the implementation of full quality management. Implementation: ① hospital civilization construction and the combination of all-optimal service; ② development of science and technology and improve the quality of medical care; ③ improve the quality of the work link with the combination of the quality of the end of medical care; ④ the implementation of the rights and responsibilities and incentives combined. The use of PDCA cycle management principles, to check the implementation, enhance the awareness of quality responsibility of all staff.
Market concept: The market concept refers to the hospital managers should have a strong market consciousness, that is, in accordance with market demand that the patient needs to adjust the concept of hospital service activities.
Competition concept: External, that is, the competition between hospitals is a contest of their respective strengths, talent, technology, equipment, quality competition, but also between the hospital's management and external adaptability and other aspects of the competition. Internally, competition is the root of the hospital personnel, distribution mechanism to generate vitality.
Development of concepts: hospital managers should have a pioneering and innovative and responsive business concepts, human resources, technical resources, management resources and market development.
Talent concept: hospital managers should have the study of talent growth, discovery, selection, rational use and effective training of talent concept, that is, the study of intellectual investment or the concept of intellectual development.
Benefit concept: hospital managers should have the social benefits as the first, and constantly improve the concept of economic benefits, which is the core concept of business philosophy.
Porter's Competitive Strategy and Strategic Management of Hospitals
The three major competitive strategies known to the theoretical community and the business community are proposed by the famous strategic management scientist, Michael Porter of Harvard Business School. Porter proposed by the famous strategic management scholar, the American Harvard Business School, Professor Michael Porter, that is, commonly known as the generic competitive strategy. Porter's three competitive strategies are: low-cost competitive strategy, differentiation strategy and concentration strategy. Low-cost competitive strategy means the competitive strategy in which a company's costs or expenses are significantly lower than the industry average or major competitors when providing the same product or service. The significance of low-cost strategy is that through cost advantage an enterprise can achieve greater profitability, accumulate more development funds under the same economy of scale, or have greater survivability in an unfavorable business environment. Another implication of low cost advantage is the sustainability of this advantage.
A differentiation strategy is a `competitive strategy in which a firm achieves a competitive advantage by offering distinctive products and services to its users. This strategy requires companies to provide different products and services that competitors do not have in terms of product design, brand design, production technology, customer service, sales channels and so on. This kind of strategy requires the enterprise in terms of product price, cost, etc., not only can give the enterprise higher profit margins than peer competitors, at the same time, also avoids the fierce price competition. Due to the uniqueness of the product or service, it increases the attractiveness to customers and reduces their sensitivity to price.
Concentrated strategy refers to a business area of the enterprise's main focus on a narrow special customer groups, a product line of a niche range or a regional market, in this narrow field, the implementation of low-cost or implementation of differentiation, or both of the competitive strategy.
Porter believes that enterprises can only choose one of the above three strategies in its field of operation, the enterprise can develop, in order to win in the competition. And another American management scholars Haier (hall) that Porter actually only put forward two strategies, namely, low-cost strategy and differentiation strategy, and centralized strategy can not be used as an independent strategy. The author agrees with Hall's point of view. As a matter of fact, concentrated strategy is the concentrated use of differentiation strategy and low-cost strategy in some local areas. The historical experience and lessons of market competition tell us that low-cost strategy and differentiation strategy are very important to the survival and development of enterprises.
From Porter's competitive strategy, we can find its basic point of view: the key to corporate strategy is to establish competitive advantage. How to establish and develop competitive advantage, it is necessary for managers to SWOT (strengths, weaknesses, opportunities, threats) to carry out a combination of analysis, insight into the trend of environmental change, to grasp the opportunities, avoid risks, play the advantages, make up for the disadvantages of the external environment changes in the opportunities and the enterprise's own strengths and advantages of the formation of the intersection, and look for the future of the best business category. Porter's three basic competitive strategy theories are well developed and widely used in general industry analysis, providing clear guidance for decision makers to position products, maximize profits and improve competitive position. The "firm" in Porter's competitive strategy is defined as "a collection of related economic activities", so Porter's competitive strategy for individual firms can be used to some extent to analyze the choice of competitive strategy for hospitals.
According to Porter's competitive strategy, the hospital's competitive strategy can be divided into low-cost strategy, differentiation strategy and specialization strategy. Hospitals of different categories, sizes, and asset natures have to choose appropriate competitive strategies to run their medical business according to their target market positioning. Each hospital manager must grasp the changing environment, determine the strategic goals and directions according to their own characteristics, and construct and utilize their own competitive advantages.
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