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Published on: December 25, 2017
Formal strategy in public hospitals
Abstract:
This paper suggests that the difficulties associated with the application of formal strategic planning in public professional service organizations may have been underestimated in much of the literature. A survey of written strategic plans produced by Canadian hospitals showed that these plans were often heavily oriented towards expansion, ambiguous and rather loosely integrated, leading to questions concerning their realism and utility as a basis for strategic decisions. This phenomenon seems symptomatic of the complex (and often highly political) decision making environment faced by hospital administrators (and by managers of other professional service organizations such as universities and social service agencies). It is concluded that the benefits of formal planning may be different and less tangible for these organizations than for private business.
Insights
Formal strategic planning in public service organizations like hospitals is more complex than often assumed. Hospital strategic plans are frequently expansion-focused, ambiguous, and lack integration, questioning their practical use.
Area of Science:
- Healthcare Management
- Organizational Studies
- Public Administration
Background:
- Formal strategic planning is widely applied in business.
- Its application in public professional service organizations (e.g., hospitals) presents unique challenges.
- Previous literature may underestimate these difficulties.
Purpose of the Study:
- To investigate the nature and challenges of formal strategic planning in Canadian hospitals.
- To assess the realism and utility of hospital strategic plans.
- To explore the influence of the complex decision-making environment on strategic planning.
Main Methods:
- Survey of written strategic plans from Canadian hospitals.
- Qualitative analysis of plan content and characteristics.
Main Results:
- Hospital strategic plans often prioritize expansion.
- Plans exhibit ambiguity and loose integration.
- These characteristics raise concerns about their realism and utility for decision-making.
Conclusions:
- The complex and political environment of hospitals impacts strategic planning.
- Benefits of formal planning in public service organizations may be less tangible than in private business.
- Further research is needed to understand effective strategic planning in public service settings.
