StrategicPlanninginthePrivateSectorAugust19,2003第一頁(yè)，共四十三頁(yè)。AgendaWhatsuccessfulcompaniesdoExamplesfromtheprivatesectorApplicationstotheMHS2第二頁(yè)，共四十三頁(yè)。Successisrareandfewentitiesaccomplishtheirgoals3第三頁(yè)，共四十三頁(yè)。

KeystosuccessAwelldeveloped,differentiatedstrategyArigorous,factbasedplanningprocesstoconnectstrategywithtacticsAwellaligned,effectiveorganizationtoexecute4第四頁(yè)，共四十三頁(yè)?！癝trategy”defined:BainperspectiveAdynamicplantodifferentiateabusinessfromitscompetitorsprofitablyandsustainablyAproprietarysetofactionsthatcreateandcapturevaluebyservingcustomersinasuperiorwayrelativetocompetitorsInformsvirtuallyalldecisionsPortfoliostrategy:Wheretoplay?Businessunitstrategy:Howtowin?5第五頁(yè)，共四十三頁(yè)。StrategyisaboutmakingchoicesWherewewillandwon’tcompeteWherewewillandwon’tinvestBusinessesCustomersGeographiesActivitiesMarkets6第六頁(yè)，共四十三頁(yè)。Companieswhosucceedarefocusedandarethebestatwhattheydo020406080100%MulticoreNoneRegionalfocusOnebusinessChannelfocusPercentofcompaniesCustomerfocus7第七頁(yè)，共四十三頁(yè)。

KeystosuccessAwelldeveloped,differentiatedstrategyArigorous,factbasedplanningprocesstoconnectstrategywithtacticsAwellaligned,effectiveorganizationtoexecute8第八頁(yè)，共四十三頁(yè)。75%ofU.S.organizationsbelievetheyneedtoupgradetheirstrategicplanningprocess“Ourstrategicplanningprocessiseffective”“Ourstrategicplanningprocessisfullydeveloped”9第九頁(yè)，共四十三頁(yè)。BestdemonstratedstrategicplanningprocessMissionDefinethemissionRarelyPortfolioStrategyDecidewhatbusinessesandmarketstocompeteinDeterminesuccessmetricsbybusinessEvery5yearsBusinessUnitStrategyDevelopdifferentiatedofferingIdentifychangingdynamicsExternalInternalIdentifykeygapsEvery2-3yearsTacticalPlanningSettargetsandtimelinesDesignkeyinitiativesDevelopimplemen-tationplansRealignorganizationAnnuallyExecutionandTrackingTrackperformanceagainstplansModifyplansasnecessaryOn-going10第十頁(yè)，共四十三頁(yè)。Businessunitstrategymustbeinformedbythefactsaroundthe“3Cs”FactbaseddiagnosticandvaluepropositionCustomersCompetitorsCostsWhatdoesourtargetcustomervalue?Whatcancompetitorsofferandhowcanwebeatthisoffering?Howcanweprovideourvaluepropositionatminimumcosts?MarketsizeMarketgrowthCustomersegmentsChannelsegmentsPriceexperienceCostexperienceProductprofitabilityChannelprofitabilityValuechaineconomicsSystemscostCostpositionCompetitivepositionProfitabilityStrategyCommitment11第十一頁(yè)，共四十三頁(yè)。StrategicplanningisoftendonewithoutreferencetofactsActualaveragemarketgrowthForecastaveragecompanygrowthForecastaveragecompanyearningsgrowth12第十二頁(yè)，共四十三頁(yè)。Planningprocessesofbest-in-classfirmsSeniormanagementdevotessignificanttimeSystematic,withclearlydefinedstepsRigorous,fact-basedapproach,andaconsistentviewofthefutureCoordinatedacrossbusinessunitsEnablesquickdecisionmakingandcoursecorrectionNote:ExamplesincludeGE,Dell,Agilent,Abbott,EmersonElectric,Sun13第十三頁(yè)，共四十三頁(yè)。

KeystosuccessAwelldeveloped,differentiatedstrategyArigorous,factbasedplanningprocesstoconnectstrategywithtacticsAwellaligned,effectiveorganizationtoexecute14第十四頁(yè)，共四十三頁(yè)。Ahighperformanceorganizationalignsfiveelements2.Driveseffectivedecisions3.Alignsthefrontlinewithrightjobsandrightincentives4.RightpeopleLeadershipDecisionsProcessesPeople

Culture1.Providessustainedleadership5.Createsahighperformanceculture15第十五頁(yè)，共四十三頁(yè)。AgendaWhatsuccessfulcompaniesdoExamplesfromtheprivatesectorApplicationstotheMHS16第十六頁(yè)，共四十三頁(yè)。Successfulstrategicplanningbeginswithaclear,focusedmissionForcetrade-offsbetweencompetingresourcedemandsTestsoundnessofaparticularactionSetclearboundariesonwhattodo…andwhatnottodoMakeclearwhat“thecore”isMemorabledistillationofstrategyclearlyunderstoodbyall17第十七頁(yè)，共四十三頁(yè)。Examplesofclear,focused,privatesectormissions:DellandSouthwestSouthwestAirlinesDellComputer“Meetcustomers’short-haultravelneedsatfarescompetitivewiththecostoftakingabus.”“Bedirect.”18第十八頁(yè)，共四十三頁(yè)。In1993,DellstrayedfromitsmissionanditscoreSituationOnlyinthedirectchannel(“core”)PCmarketwasexplodingWantedtocapturealargerpartofthegrowthComplicationExpansionintoretailchannel19第十九頁(yè)，共四十三頁(yè)。Dell:BacktothecoremissionDellwithdrewfromretail20第二十頁(yè)，共四十三頁(yè)。Examplesofclear,focused,privatesectormissions:DellandSouthwestSouthwestAirlinesDellComputer“Meetcustomers’short-haultravelneedsatfarescompetitivewiththecostoftakingabus.”“Bedirect.”21第二十一頁(yè)，共四十三頁(yè)。Southwesttranslateditsmissionintoclear,measurablegoalsSuperiorcustomerserviceAchievelowcostposition30%lowerAffordabletravel40%lower22第二十二頁(yè)，共四十三頁(yè)。Southwestresearchedtargetcustomersegmentneedsandpreferences23第二十三頁(yè)，共四十三頁(yè)。SpetitorsPriceSchedule24第二十四頁(yè)，共四十三頁(yè)。SpetitorsOnetypeaircraftSecondaryairportsCustomerselfserviceNofrills,nomealsserviceCostInitiatives25第二十五頁(yè)，共四十三頁(yè)。SouthwestignoredtraditionalairlinemeasuresthatcompetitorsfocusedonRepeatpurchase26第二十六頁(yè)，共四十三頁(yè)。SouthwestaligneditsorganizationtoimplementsuccessfullyLeadershipDecisionsProcessesPeople

Culture“Belowcostanddeliverexcellentservice”Selectivehiring(2%acceptance)PeerrecruitingtoensurefitsFlexiblejobdescriptionsPilotsandattendants“doitall”RigorouscustomerservicetrainingDecisionmakingpushedtofrontlinesEmployeeloyaltyfocustoincreaseexperience(50%lessturnover)EmphasisonImportanceofpeopleEmployeerecognitionHavingfun27第二十七頁(yè)，共四十三頁(yè)。KeylearningsfromDellandSouthwestDefineaclearmissionandaclearcoreandsticktoyourcoreTranslateyourmissionintomeasurableoutcomesBuildavaluepropositionbasedonafactbaseddiagnosisCustomersCompetitorsCostsAligntheorganizationtoimplementyourstrategy28第二十八頁(yè)，共四十三頁(yè)。AgendaWhatsuccessfulcompaniesdoExamplesfromtheprivatesectorApplicationstotheMHS29第二十九頁(yè)，共四十三頁(yè)。TheNCAMHSisexperiencingsignificantpressuresfromanumberofdirectionsNCAMHSBudgetpressuresChangingdemographicsEvolvingmissionsRegulatorychanges30第三十頁(yè)，共四十三頁(yè)。BestdemonstratedstrategicplanningprocessMissionDefinethemissionRarelyPortfolioStrategyDecidewhatbusinessesandmarketstocompeteinDeterminesuccessmetricsbybusinessEvery5yearsBusinessUnitStrategyDevelopdifferentiatedofferingIdentifychangingdynamicsExternalInternalIdentifykeygapsEvery2-3yearsTacticalPlanningSettargetsandtimelinesDesignkeyinitiativesDevelopimplemen-tationplansRealignorganizationAnnuallyExecutionandTrackingTrackperformanceagainstplansModifyplansasnecessaryOn-going31第三十一頁(yè)，共四十三頁(yè)。ItiscriticaltounderstandtheMHS’multiplemissionsandhowtheyrelatetooneanotherPeacetimemissionWartimemissionCallsforproviderstokeepactivedutyfitandtoprovidecasualtycareinthetheatersandatMTFsCallsforaparticularmixofproviders,focusedongeneralsurgeons,orthopedicsurgeons,etc.Requiresasignificantamountofchallengingcivilianpathology,whichmaybeoptimizedaround65+patientsCallsforpeacetimeproviderstoprovidehealthcaretoactiveduty,theirdependentsandserveretireesCallsforacertainmixofproviders,includingOB-GYN,pediatrics,etc.Typicallyoptimizedalongaccessforprimebeneficiaries32第三十二頁(yè)，共四十三頁(yè)。Keyoutcomesareclearbuttheyneedtobetranslatedintomeasurablegoals

ReadinessTraining/GMEResourceoptimizationCustomerserviceandaccessQualityofcareKeyOutcomes

???????????????Targets33第三十三頁(yè)，共四十三頁(yè)。SuccessfortheMHSwilllikelyrequirefocusingoncertainactivitiesandclinicalareasResearchGMEHospitalsandClinicsPhysiciansHealthPlanMgmtServicelinesActivitiesInfectiousdiseasePhysicaltherapyCardiologyNephrologyPainmanagementGIVascularsurgeryUrologyEndocrinologyNeurosurgeryRheumatologyFamilypracticeMentalhealthNeurologyHem-oncGeneralinternalmedicineDermatologyOrthopedicsOphthalmologyENTPlasticsurgeryEmergencymedicineCTsurgeryOb/gynGeneralsurgeryPediatrics(allspecialties)

PulmonaryOrgantransplantPediatricsurgery34第三十四頁(yè)，共四十三頁(yè)。TheMHSmustpicktheservicelinesandactivitiesonwhichitshouldfocusInvestorpartnerFocusExitDivestorpartneroroutsourceHighLowLowHighCriticaltomissionAbilitytosucceed35第三十五頁(yè)，共四十三頁(yè)。TheMHSshouldcollectarigorousfactbasetosetstrategyandtargetsDemandSupplyOverall,servicelineandMTFlevelsAcademicandprivatepracticebenchmarksPatientpopulationOutpatientvisitsInpatientadmissionsServicelineuseratesVolumesperproviderPharmacyspendGMEprogramaccreditationNon-medicalcontractingcostsProvidermixandcapacityProviderproductivitySupportstaffproductivityClinicaloutcomesDirectandpurchasedcarecostsPatientaccessGeographicresourcedistributionPatientsatisfactionlevels36第三十六頁(yè)，共四十三頁(yè)。Apreliminarydiagnosissuggeststhatvariousclinicalareashaveproductivitybelowacademicinstitutionbenchmarks37第三十七頁(yè)，共四十三頁(yè)。Anumberofservicelinesarealsoexperiencingaccessissues38第三十八頁(yè)，共四十三頁(yè)。RedesigninitiativesfortheMHSmaytakemanyforms…FacilitiesrationalizationClinicalprogramconsolidationContracting/collectionsfrom3rdpartypayorsResourceallocationsPatientandproviderretentionSharedsupportservicesSpecializationoffacilitiesRe-thinkingoutsourcingIncentivesacrosssystemPreventativecare/diseasemanagementGMEprogramdesignProcurementefforts…butmustbeinformedbydata39第三十九頁(yè)，共四十三頁(yè)。KeyquestionsfortheMHSWhatis(are)themissionsandhowcantheybetranslatedintomeasurablegoals?Whatservicelinesa