Strategic Planning For Sustainability: A Step-By-Step Model For Executive Teams

Transcription

1 Strategic Planning For Sustainability: A Step-By-Step Model For Executive Teams The 2016 OPEN MINDS California Management Best Practices Institute August 24, :00am 11:15am Joseph P. Naughton-Travers, EdM, Senior Associate, OPEN MINDS York Street, Gettysburg, Pennsylvania Phone: info@openminds.com All Rights Reserved.

2 Agenda I. Why Organizations Need An Externally-Focused, Resource- Based Approach To Strategic Planning II. III. IV. The OPEN MINDS Approach To Developing An Effective Strategic Plan Resources for Human Development: A Strategic Planning Case Study Dyann Roth, Chief Executive Officer, Resources for Human Development Marco Giordano, CPA, Chief Financial Officer, Resources for Human Development Questions & Discussion All Rights Reserved.

3 Why Organizations Need An Externally-Focused, Resource-Based Approach To Strategic Planning 3

4 What Is Strategic Planning? Strategic planning is your organization s process of continually assessing its internal capabilities and the external environment (payers, consumers, and competitors) in order to determine how best to use its limited resources to meet your strategic objectives All Rights Reserved.

5 Value Of Planning For Your Organization Interprets the mission and vision, providing clear direction for the shortterm and for the future Serves as a formal process to allocate limited resources Establishes strategic priorities Ensures organizational alignment Establishes the basis for on-going performance reporting on organizational status provided by the chief executive officer to the board All Rights Reserved.

6 Value Of Planning For CEO & Management Team Provides clarity from the board regarding organizational priorities and performance expectations Serves as the basis for development of organizational infrastructure and operating plans Serves as the basis for departmental and program plans All Rights Reserved.

7 The OPEN MINDS Approach To Developing An Effective Strategic Plan

8 Recommended Phased Business Strategy Development Process Phase One Scenario-based strategy development Phase Two Modification of business unit plans to support strategy implementation Phase Three Development of executive team performance dashboard All Rights Reserved.

9 Overview Of Strategic Planning Process Review/Establish Mission/Vision/Objectives Gather External Information/External Analysis Trends & Competitors Gather Internal Information/Internal Analysis Service Portfolio Analysis Identify Options for Achieving Objectives - Strategies, Tactics, Markets & Services Develop Operational Plans Marketing & Business Development, HR & IT Develop Budget & Financing Plan Develop Detailed Implementation Action Plan Develop Key Performance Indicators All Rights Reserved.

10 Typical Strategic Plan Outline Executive summary Statement of annual goals and objectives (3 year) Summary of internal organizational analysis Summary of external market research Possible environmental market scenarios Organizational strategies and tactics for the most likely strategic scenario Strategic issues and objectives Strategic initiatives Key tactical elements of each strategic initiative Implications of proposed strategy and tactics on operations Marketing and development implications of organizational strategies Operational and technology implications of organizational strategies Financial management implications of organizational strategies Strategic action plan: high-level implementation plan for each strategic initiative All Rights Reserved.

11 External Analysis National and local environmental trends Competitors Payers Consumer and stakeholder information Organizational image All Rights Reserved.

12 Internal Analysis Revenue mix Profit and loss Number of consumers served by service line Unit cost data SWOT analysis All Rights Reserved.

13 Common Strategic Options For Consideration Closure of services/service lines that are not profitable and/or affordable and/or good fit Strategies to improve margins of existing service line Building value added products to increase margins Expansion of successful service lines (expansion of geography, new customer base, etc.) Diversification of revenue sources Reconfiguration of services within value chain Strategies to address shifting economy of scale issues All Rights Reserved.

14 Factors Contributing To Failed Plan Implementation Poor preparation of line managers Inadequate linkage of strategic plan with other control systems Definitions of service lines and operating units not precise Badly handled reviews of business unit plans Vaguely formulated goals Inadequate information for action planning All Rights Reserved.

15 Resources for Human Development: A Strategic Planning Case Study Dyann Roth, Chief Executive Officer, Resources for Human Development Marco Giordano, CPA, Chief Financial Officer, Resources for Human Development

16 Strategic Plan Implementation: what we are learning Dyann Roth, CEO Marco Giordano, CFO

17 Resources for Human Development, Inc. RHD Founded: 1970 Single $50,000 grant for Mental Health Outpatient Clinic Currently: Based in Philadelphia, PA Diversified Services in 14 states Revenues: $260+ Million Employees: 6,000

18 Primary Service Lines Residential, Day/Employment, and Case Management Services for individuals with IDD Massachusetts, Connecticut, Rhode Island, Pennsylvania, Delaware, Florida, Tennessee, Missouri, Nebraska, South Dakota Residential, Field-based and Outpatient Services for individuals (adults and children) with Behavioral Health issues and Addictions Pennsylvania, New Jersey, Delaware, North Carolina, Louisiana, Iowa, Virginia Federally Qualified Integrated Health Clinics - Pennsylvania

19 Strategic Planning Process and Timeline CEO transition from founder September 2013 CEO/Management Team determined need for Strategic Plan Fall 2014 Engaged Open Minds February 2015 Strategic Planning Kick-off Meeting March 2015 Internal Analysis: internal stakeholder surveys and focus groups, service line portfolio analysis (profit and payer mix by service line and by region/state), SWOT analysis -- March June 2015 External Analysis: national and state environmental trends research, external customer interviews -- March June 2015 Plan Development July August 2015 Presentation of Plan to Board/Full Corporation September 2015

20 Key Findings Of The Strategic Analysis RHD has a reputation and history of service excellence, in particular for consumers with complex behavioral health and intellectual and developmental disabilities. The current structure of administrative operations and program oversight at RHD is not as efficient, effective, and values enhancing as it should be. RHD has major workforce issues to address. RHD is financially stable, but it operates with slim margins and a service line portfolio that is highly dependent on residential services. RHD has little brand recognition at a national level, and communication of its brand and service excellence is critical as the organization moves forward.

21 Four Strategic Objectives Strategic Objective #1: To establish RHD as a Center of Excellence for providing creative, person-centered, trauma-informed, integrated health care services and supports to underserved communities and individuals with serious behavioral health and/or intellectual and developmental disabilities. Strategic Objective #2: To establish RHD as an employer of choice and invest in our staff to ensure that we recruit, support, develop, and retain a skilled, caring, creative, healthy and diverse workforce committed to achieving our mission. Strategic Objective #3: To develop and implement an organizational structure (operations and governance) that best meets the needs of program participants and staff, remains responsive to the marketplace, and promotes and enhances our values while remaining financially responsible. Strategic Objective #4: To diversify revenue sources to ensure RHD s financial sustainability and improved financial performance.

22 25 Specific Initiatives to Achieve 4 Strategic Objectives 3 Overarching Initiatives: Implement a formal key performance measurement system and performance dashboard. Develop a key stakeholder reporting and communication system to communicate RHD s performance and reputation as a Center of Excellence and Employer of Choice. Develop, communicate, and implement a comprehensive communication plan between leadership, management, and all other staff. Remaining 22 Initiatives relate specifically to the individual objectives.

23 High Level Implementation Timeline Phase one: September 2015-December 2015 Primary Focus: Restructure into 8 divisions, select leadership and redesign shared services teams Phase two: January 2016-June 2016 Primary Focus: Complete staffing redesign and implementation of new structure and build new Executive Team Phase three: July December 2016 Primary Focus: Stabilize financial picture in each division; diversify and service lines; develop EHR, KPI tools and outcomes measures Phase four: January June 2017 Primary Focus: Continued development and implement EHR and KPI tools; continue to stabilize and build margin in divisions funding Overarching Focus: Center of Excellence and Employer of Choice

24 Major planning challenges Engaging Board in the process at appropriate ( healthy ) level of involvement Getting staff at all levels to participate Cynicism Disconnection Data overload Getting enough external input Keeping process moving forward timely

25 Major Implementation Challenges Belief that nothing s gonna change rapidly turned into pervasive anxiety and fear that things were going to change Aggressive Timetable! Had to keep moving forward due to anxiety and upset Needing to do financial re-forecasting while changing structure Some shared services teams had begun their work on Strategic Initiatives and then had to regroup and change plans due to changes in divisional structure Inadequate time and mechanisms to keep everyone informed every step of the way Reorganizing (restructuring) was a prerequisite to accomplishing other strategic objectives Significant change management required as a result of restructuring

26 Critical Supports for Implementation External, credible facilitation/consultation ( Weight Watcher Check-ins ) Internal die-hard project manager keeping us all honest Internal process leadership team Continual communication with and support from Board Internal staff communications in multiple formats Continual reconnection to Strategic Objectives and WHY we need to do this Increased exposure of staff at multiple levels to the realities and opportunities in external environment Deep breathing Humor

27 Questions & Discussion