A hospital strategic plan proactively charts a path for long-term success. A clearly formed plan ensures boards prioritize key issues and make informed decisions to improve hospital performance and growth.
A strategic plan defines the overarching vision, long-term goals, and guiding principles that shape decision-making across a health care organization. It sets the “why” and “what” – clarifying the hospital’s mission, values, and high-level objectives.
Operating without a hospital strategic plan introduces several critical risks that can affect operational efficiency and, more importantly, patient outcomes. A board management solution for health care organizations can significantly improve the strategic planning process, especially as boards begin to play an active role in establishing the foundational elements of the plan or providing mission-critical guidance in its creation.
The hospital board of directors must understand how to streamline the process to effectively communicate the plan to stakeholders and accurately measure progress.
What is a Hospital Strategic Plan?
A hospital strategic plan is a comprehensive plan that outlines an organization’s mission statement, vision, and long-term objectives. This action plan identifies key goals, outlines the steps to achieve them, and determines actionable methods of measurement.
Why is a strategic plan important for a health system? It’s critical for the long-term viability of the organization and for increasing the level of patient care.
A hospital strategic plan:
- Identifies clear goals and keeps all stakeholders on the same page
- Prioritizes initiatives and appropriates resources for desired outcomes
- Mitigates risk and ensures regulatory compliance
- Designates a timeline to monitor achievement of outcomes
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Elements of an Effective Hospital Strategic Plan
A strategic plan provides a clear route for your organization to achieve its goals. To craft your strategic plan, consider the following four main phases to get started:
Phase 1: Preparation & Assessment | ||
Purpose: Lay the groundwork by gathering data and aligning leadership. | ||
Key Activities | Who’s Involved | Deliverables |
Internal/external environmental scan | Strategy team, department heads | SWOT analysis report |
Review mission, vision, and values | Executive team, board | Draft/reaffirmed MVV statements |
Collect stakeholder feedback | Staff, clinicians, patients, community representatives | Stakeholder needs summary |
Phase 2: Strategic Formulation | ||
Purpose: Define the hospital’s direction and priorities | ||
Key Activities | Who’s Involved | Deliverables |
Set strategic goals and SMART objectives | Executive leadership, board, strategy team | Strategic goals and KPIs |
Identify strategic initiatives | Department heads, finance, operations | List of prioritized initiatives |
Analyze risks and dependencies | Risk management, compliance, legal | Strategic risk matrix |
Phase 3: Operational Planning and Resourcing | ||
Purpose: Convert strategy into actionable programs. | ||
Key Activities | Who’s Involved | Deliverables |
Developed detailed implementation roadmap | Project managers, department leads | Timeline with milestones and action plans |
Align budget and staffing | Finance, HR, IT | Resource allocation plan |
Assign roles and accountability | All functional teams | Responsibility matrix (RACI) |
Phase 4: Execution | ||
Purpose: Implement strategic initiatives across departments. | ||
Key Activities | Who’s Involved | Deliverables |
Launch strategic projects | Strategy office, department leads | KPI dashboards, scorecards |
Communicate goals and plans | Leadership, board | Quarterly/annual review report |
Provide training and capacity building | Executive leadership, PMO | Strategic plan revisions |
For a more in-depth look, see below.
1. Mission, Vision, and Values
Clearly defined mission, vision, and value statements function as a framework for your strategic plan. These basic principles specify your hospital’s purpose and drive. Your mission defines what your organization aims to accomplish, while your vision focuses on the future.
The strategic plan committee or executive board typically is responsible for creating or reviewing these statements, with input from other stakeholders. If needed, draft a revised set that accurately aligns with your updated mission, vision, and values.
2. Environmental Scan (SWOT Analysis)
An environmental scan (also referred to as a SWOT analysis) is the process of identifying an organization’s strengths, weaknesses, opportunities, and threats. It combines internal and external data to provide insight into your organization’s performance, competitor characteristics, and potential development of new services.
Collaborative input from several sources, including a hospital compliance committee, ensures your hospital remains compliant with laws and regulations. An environmental scan pinpoints where an organization can stay one step ahead by implementing new technology or offering new services. It also ensures the hospital remains responsive to industry trends and opportunities.
3. Strategic Goals and Objectives
Develop strategic goals and objectives to create a path for the hospital’s future direction. Use a strategic risk matrix to assess risks and data from your SWOT analysis to prioritize goals. Set SMART objectives (specific, measurable, achievable, relevant, and time-bound) to achieve the greatest results. Once objectives are in place, specify key performance indicators to accurately track progress.
4. Resource Allocation Plan
To implement your strategic plan, allocate budget and staffing based on prioritized initiatives. Input from a medical advisory board or other committee helps identify potential funding opportunities, whether that’s through grants for research or community fundraising. Communicating with hospital finance executives and committees is critical for appropriate resource allocation.
Create a visual timeline with milestones and specific action plans to ensure your organization remains on course to accomplish goals. A responsibility matrix (or RACI, for responsible, accountable, consulted, and informed) identifies responsible parties for specific actions and sets a timetable for follow-up. This ensures teams know their individual roles and responsibilities, which is critical for effective monitoring.
5. Evaluation and Continuous Improvement
Stay on the right path with evaluation plans and improvement strategies. Since a hospital strategic plan involves many departments and key players, streamlining communication and providing training remains crucial.
Monitor key performance indicators through timely report reviews at executive board and operations meetings. Evaluating improvement isn’t a one-and-done activity. To be effective, set a regular schedule to analyze data and make needed course corrections so your organization stays on track to achieve goals.
Introducing OnBoard AI
Health system strategic planning relies on accurate data, efficient dissemination of information, and collaborative feedback.
OnBoard AI delivers cutting-edge tools to empower board administrators to seamlessly capture and deliver comprehensive information to key stakeholders.
OnBoard AI enables boards to:
- Create a well-structured board meeting agenda in seconds
- Instantly capture, summarize, and draft meeting minutes
- Easily provide the full picture by highlighting supporting documents
- Quickly detect potential issues for faster response
- Identify unresolved issues and automate governance tasks
OnBoard’s AI-enhanced workflows not only save hours of time, but also function as a built-in expert to simplify and improve board management. Predictive insights flag compliance issues to ensure boards follow sound board meeting procedures and track performance patterns to improve board oversight.
Streamline Strategic Planning With OnBoard
While hospital strategic planning is a complex process with many moving parts, it’s a necessary step to improve the quality of patient care and ensure continued organizational growth. OnBoard equips hospital strategic planning committees with comprehensive tools to create an effective strategic plan and easily communicate with involved committees, department heads, and teams.
OnBoard improves board management with simplified agenda creation, organized task management, and the ability to securely collaborate on mobile devices. It meets rigorous international compliance standards, including HIPAA compliance, ensuring high-level data protection.
OnBoard’s seamless management tools enable hospitals to improve board meetings with ready access to data and documents, greater collaboration and engagement, and streamlined board governance. This improves all aspects of the strategic planning process and ensures boards effectively govern and guide the organization forward.
Ready to leverage the power of OnBoard in your health system? Schedule a free trial to learn more.
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About The Author
- Kelli Thomas is a customer success manager who joined OnBoard in 2022 and specialized in working with health care boards to meet their ever-changing needs. Her favorite part of the job is building relationships with clients, addressing their needs, and providing solutions. An Indiana University-Purdue University Indianapolis graduate, Kelli lives in Greenwood, Indiana, and enjoys spending time with her husband, son, and dog.
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