Strategic Planning Model Application & Performance Measures

This report critically evaluates strategic planning models, focusing on the alignment model and its application within healthcare organizations like the NHS. It details how the alignment model can be used to ensure internal operations align with strategic aims, emphasizing the determination of overal...Read More

Assessment Part 1
1

Contents
1) Chose and criticise a strategic planning model...........................................................................3
2) Describe how you would apply this model to Health care organisation of your choice.............4
3) Outline 5 financial and non-financial performance measures that you could use to assess the
organisation......................................................................................................................................5
References........................................................................................................................................7
2

1) Chose and criticise a strategic planning model.
In the words of Speziale, (2015),strategic planning is the need of every business organization in
order to avail long-term success and competitive advantage in the market as against the rivalries.
Strategic planning models are the useful tools that provides directions and outlines the business
objectives and also helps in the effective decision making process. In reference with the growing
competition in the dynamic and complex business environment, the need of strategic planning
models has been raised that offers a structure to the organization for the systematic management
of the operations and teams. There are strategic planning models which are widely used by the
business operations in order to assess and manage the performance such as conventional strategic
planning, issues-based strategic planning, organic strategic planning, real-time strategic
planning, alignment model of strategic planning etc. There is no perfect or best strategic planning
model but it depends on the needs and requirements of the business organization (Speziale,
2015).
Alignment model of strategic planning is an effective strategic planning model which is used to
ensure strong alignment of the internal operations of the organizations with the strategic aims
and objectives. With the adoption of this strategic planning model in the planning process, the
business managers can effectively determine the needs and requirements of the operations and
implement the decisions accordingly. The phases of the alignment model of strategic planning
are stated as under:
 Determination of the overall aim of the alignment.
 Strategic analysis of the compatibility of the internal operations which are most likely to align
with the determined aim.
 Establishment of the goals for aligning the operations in a more better and effective way.
Different types of methods for the accomplishment of the goals and objectives are used.
 The information will be then included in the strategic plan (Van et. al., 2015).
Alignment model of strategic planning is very strategic and precise as it leads the organization
towards successful outward looking and stabilizes the strategic plans for the longer time.
3

2) Describe how you would apply this model to Healthcare organisation of your choice.
According to toLucco, (2014), the process of strategic planning is a valid and useful tool for all
types of organizations, so as in health care organizations. The level of the strategic planning
process in the healthcare organization depends on the size of the units, complexity of the
operations and differentiation of the services etc. For an instance, the department of cardiology,
physiotherapy and general units are at appropriate levels as long as the alignment of their plans
with the other plans. For the strategic planning process, the leader is responsible for each unit. At
the healthcare organization like NHS, the strategic planning process has significant importance
due to the complexity of the tasks and operations.
The business planners and leaders at the NHS can adopt the alignment model of strategic
planning in their strategic planning process for the better and systematic management of the
performance of the organization. As the organization is large and complex, the strategic aims of
the different units should be determined by the leaders. The leaders thereafter work on finding
the resources which are best suitable for the accomplishment of the set goals and objectives. The
main focus of this strategic planning model is on the organization mission and objectives and the
resources required for the completion of such missions (Van et. al., 2015).
As per the model, NHS has a different set of goals and objectives at the different departments
and resources are allocated for the fulfillment of the gaols. The alignment between the goals and
mission of the organization is important due to the increasing number of frequent changes in the
organization. Once the units at the NHS will fulfill their respective goals and mission, the team
will include the information in the strategic plan of the organization (Lucco, 2014).
4

3) Outline 5 financial and non-financial performance measures that you could use to assess
the organisation.
Financial performance measures are the tools which are used to measure the results and outputs
of the organization in monetary or financial terms. With the help of the financial performance
measures, the financial health of the organization can be ascertained over a period of time. Some
of the commonly used financial measures are listed as under:
 Gross profit margin: Gross profit margin is used to determine the status of the financial health
of the organization.
 Net profit margin: Net profit margin reveals the amount of profit that business obtained from its
total sales.
 Asset turnover: It is a financial ratio which is used to measure the efficiency of the business in
using its assets for the generation of the sales.
 Liquidity measures: These are the measures that are used to measure the ability of the company
to pay its short-term debts.
 Shareholder value: Approaches like NPV, IRR are used to measure the value of shareholder in
the organization. It is basically the value which is delivered to the shareholder by the company
(Zabria and Ahmad, 2015).
Non-financial performance measures are the qualitative performance tools which are not
expressed in monetary terms and used for the assessment of the performance of the organization
during a period of time. Some of the non-financial performance measure used by the
organizations for the assessment of the performance includes:
 Customer satisfaction: Customer satisfaction is one of the most important non-financial
measures used for the assessment of the organization performance. The reviews and feedbacks of
the customers will ensure the current status of the organization.
5

 Market value: The market value of the organization reflects the market share and reputation of
the organization in the market.
 Productivity: Higher productivity leads to profit while low productivity incurs a loss to the
organization. Hence productivity can also tell about the position of the organization.
 Attainment of the objectives: if the set goals and targets are achieved, then the organization is
going in right direction and vice versa.
 Employee satisfaction: The satisfaction level of the employees also reflects the performance
and growth of the organization in a given period of time (Parmenter, 2015).
6

References
 Lucco, J., 2014. Align Your Organization with Better Strategic Planning. Clear Point Strategy.
Available at https://www.clearpointstrategy.com/align-organization-strategic-planning/.
 Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning
KPIs. John Wiley & Sons.
 Speziale, G., 2015. Strategic management of a healthcare organization: engagement, behavioural
indicators, and clinical performance. Oxford Academic. Available at
https://academic.oup.com/eurheartjsupp/article/17/suppl_A/A3/413495.
 Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public
sector. Routledge.
 Zabria, S.M., and Ahmad, K., 2015. The Application of Non-Financial Performance
Measurement in Malaysian Manufacturing Firms. 7th International Economics & Business
Management Conference.
7