SWOT Analysis Model, and Why It Is Significant in the Strategic Planning Process

Introduction

SWOT is a framework that involves analysis of internal aspects of an organization, strengths (S) and weaknesses (W) and external factors, opportunities (O) and threats (T) (Shanks, 2016). It is an approach with organizing principles, used to help organizations develop a strategic plan for running and improving their operations. SWOT analysis is considered to offer a detailed depiction of an organization's functioning environment since it helps managers to develop their own strategies by looking at the internal and external determinants of the organization's performance. For instance, based on healthcare organizations, managers analyze internal and external environmental factors in order to make decisions that can help the organization to meet its goals, improve operations, and keep the organization relevant by proving efficient, and affordable services to the people. Internal environmental factors in a healthcare institution include human resource capacities, leadership talent, policies and procedures, and the culture of the organization. On the other hand, a clear picture of an organization can be determined by external environmental factors. Among them, is social expectations, competition from other healthcare facilities, changing trends, and government legislation.

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SWOT analysis is a vital section of the strategic planning process for the fact that it takes advantage of opportunities by utilizing strengths and neutralizing weaknesses with the aim of reducing the impact of the weaknesses to the organization (Shanks, 2016). The analysis provides useful information, which a healthcare organization can use to develop policies and practices. It also gives data that can be used to arrive at a list of issues categorized into strengths, weaknesses, opportunities, and threats. It is through the scrutiny that a healthcare organization assesses and discusses most issues that have potential impact its operations.

The Steps of Strategic Planning Process

Strategic planning is defined as the process of finding a desired future state of an organization, and the method to achieve it. It is a dynamic process and helps managers to make long-term plans for their organization (Shanks, 2016). Currently hospitals, and other health care firms have started to incorporate strategic planning as a treasured tool to assess alternate paths that can assist them to prepare for the future (Shanks, 2016). The strategic planning process comprises primarily of two interrelated activities: the conception of the strategic plan, and the implementation of the organization's strategy (Shanks, 2016).

The strategic planning process begins with a SWOT analysis to establish the foundation for strategy development. The SWOT analysis helps managers in two basic ways; to obtain an overview of how the health organization is presently networking with the market in contrast to their internal competencies, and the projected strategic path of the firm (Shanks, 2016).The second way is to identify market gaps and threats that the firm may want to deal with in the future. SWOT analysis may help the managers obtain precise strategies that may be important for the future growth of the organization (Shanks, 2016).In this phase the firm will also conduct a market analysis using also the Five Forces Model (Shanks, 2016). When conducting SWOT analysis, a health organization should look for health care providers who share the same vision, and goals. For instance, if obstetrics is a basic clinical program of the firm, the organization should closely consider the future projected supply, and demand of obstetricians (OBs) (Shanks, 2016).

The second step is strategy identification, and selection; In this phase, the health organization will develop goals, and objectives they intend on achieving in the future (Shanks, 2016). For instance, they might consider implementing several innovations in the health facility such as robotic technologies, drug advancements, and invasive surgery (Shanks, 2016). The managers will also align their financial targets, and resource planning for future activities. Strategy Tactical Plans involves developing tactical plan template which involves integrating each activity, the expected time frame and results at the moment (Shanks, 2016). The rollout and Implementation involve coming up with marketing plan for drugs, or community awareness programs, facilities plan, capital plan, and board endorsement on the projected programs (Shanks, 2016). Monitoring and control are the final step and involves creating a feedback system that allows all relevant stakeholders to gain keep track on the progress of the planned agendas, and solve the problems as they arise (Shanks, 2016).

Leadership Domains and Competencies

Health care managers should contemplate two main domains as they conduct different tasks, and when making crucial decisions. These fields include; external, and internal domains (Shanks, 2016). The external domain discusses the influences, activities, and resources that happen outside the boundary of a health organization but has a great impact on the operations of the organization. For example, "Children's Health Insurance Plans (CHIP), Medicare, and Medicaid" (Shanks, 2016).The internal domain denotes the specific expanses that managers need to discourse on daily basis, for instance, financial performance, ensuring there are drugs in the pharmacy department and monitoring the quality of care offered to patients (Shanks, 2016).

The leadership competencies that managers should implement include; Conceptual skills-it will help them to be able to critically scrutinize, and address intricate problems. For instance, a manager can carry out an analysis of the best means of reducing patient complaints regarding drug shortage (Shanks, 2016). Technical skills- will help them to be able to conduct a precise work task. For instance, a manager may establish, and implement a new incentive reward program for staff. Interpersonal skills will help a manager to communicate effectively with the subordinates on the desired performance level (Shanks, 2016).

Health leaders can improve their ability to lead by attending leadership development programs on different topics that will help them gain competency-based skills. They competency skills gained will help them to be able to critically scrutinize, and address intricate problems. Health leaders can also enroll courses on leadership, and management which will help to sharpen their skills on how to lead a healthy organization effectively (Shanks, 2016). Health leaders should also learn on change management it will help them incorporate technological innovations in diagnostics, and treatment, deal with intricate health problems such as opioid addiction, and cancer through early screenings (Shanks, 2016).

References

Shanks, N. H. (Ed.). (2016). Introduction to health care management. Jones & Bartlett Publishers. Retrieved from: https://books.google.com/books?hl=en&lr=&id=WxEHDAAAQBAJ&oi=fnd&pg=PP1&dq=Introduction+to+Health+Care+Management+Front+Cover+Sharon+B.+Buchbinder,+Nancy+H.+Shanks&ots=oGolr8WDtT&sig=rIP6iZj0WP1mxX2VglDIkPrKIAg