HSA 3170 Module 10 power points - Chapter 11 Copyright 2014...

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Chapter 11 Copyright 2014 Health Administration Press
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Strategic and Operational Planning Learning Objectives 1.Define and understand the importance of planning 2.Identify the prerequisites to the planning process 3.Explain the types of planning 4.Compare and contrast strategic and operational planning 5.List, in order, and explain each step in the planning process 6.Discuss the methods used to evaluate the planning process Copyright 2014 Health Administration Press
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Defining Planning Planning is the process of deciding in advance what must be done in the future. Establishes Goals Objectives Policies Procedures Methods Rules Copyright 2014 Health Administration Press
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Defining Planning Planning precedes, and serves as the framework for, the other management functions of organizing, staffing, influencing, and controlling. . Copyright 2014 Health Administration Press
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Prerequisites to Planning Sound organizational structure Well-defined chart of accounts Prompt and accurate accounting system Comprehensive management information system Copyright 2014 Health Administration Press
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Types of Plans Planning horizon Strategic vs. Operational Management approach Top-down vs. Bottom-up Design characteristics Incremental vs. Zero-base Comprehensive vs. Limited-in-scope Fixed vs. Flexible Discrete vs. Continuous Copyright 2014 Health Administration Press
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Corporate Planning Planning based on market needs Four major stages Strategic planning Operational planning Budgeting Capital budgeting Copyright 2014 Health Administration Press
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Corporate Planning Stage & Planning Horizon Strategic Planning: 3 10 years out, revised annually 1. Validate mission & strategic interpretations 2. Assess external environment 3. Assess internal environment 4. Formulate vision 5. Establish strategic thrusts 6. Identify critical success factors 7. Develop primary, or core objective 8. Develop strategic financial plan Operational Planning: 1 year out 9. Develop secondary, or department objectives 10. Develop policies 11. Develop procedures 12. Develop methods 13. Develop rules Budgeting: 1 year out 14. Project volumes 15. Convert volumes into revenues 16. Convert volumes into expenses 17. Adjust revenues and expenses as necessary Capital Budgeting: 1 3 years out 18. Identify and prioritize requests 19. Project cash flows 20. Perform cash flows 21. Identify nonfinancial benefits 22. Evaluate benefits and make decisions Corporate Planning Process Exhibit 11.1 Copyright 2014 Health Administration Press
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