1

Project: Operations Management

Al Noor Hospital
Student name
Student d
Index
ntroducton2
Operations management 3
Importance of Strategc Pannng................................4
Roes and Responsbtes...........................................5
Governng Board
Strategc Pannng Commttee
Chef Executve Offcer
Medca Staff
Department Heads
Patents and Communty
Panner
Consutants
The Steps of Strategc Pannng..................................6
Get Organzed
Perform an Envronmenta Assessment
The Interna Assessment
The Externa Assessment
Deveop a Vson
Revew the Msson Statement
Deveop Strateges
Goa Approach
Crtca Issues Approach
Scenaro Approach
Prepare the Strategc Pan
Approve the Pan
Impement the Pan
Montor and Evauate the Pan
Resources..................................................................12
concuson..................................................................13
References................................................................12
2
Introduction
Founded in 1985, Al Noor Hospital provides a complete continuum of healthcare and has
places itself among the Leading private hospital services provider in Abu Dhabi
!elocation of Al Noor Hospital to "halifa #treet in 1999, Al Noor "halifa $ranch %as
launched in the &ear '((1
)n '((*, Al Noor Hospital %as established in Al Ain follo%ed b& the inauguration of its
uni+ue, purpose,built hospital at Airport !oad in '((8 -he hospital soon evolved into a
state,of,the,art healthcare provider, emplo&ing e.perienced medical professionals and the
latest facilities )t has since achieved remar/able progress in the healthcare industr& and
has recentl& e.panded to Abu Dhabi0s 1estern region, opening speciali2ed clinics in
3adinat 4a&ed, 3irfa and 3ussafah, offering medical services as %ell as emergenc&
referrals to its Abu Dhabi branches
1
Al Noor has achieved phenomenal success in path,brea/ing procedures and has placed
itself among the tophealthcare institutions in the countr& -he hospital is affiliated %ith
5nited "ingdom0s National Health #ervice and the Health Authorit& Abu Dhabi in
addition to a number of )nternational Health )nstitutions 6+uipped %ith the latest and
most advanced medical e+uipment the Hospital remains an inventor, al%a&s /een to
introduce the latest diagnostic and treatment techni+ues )n April '((( Al Noor %as
besto%ed the prestigious )#7 '((' 8ertificate, the first private hospital in Abu Dhabi to
achieve this a%ard )n the &ear '((' Al Noor %on the )nternational A%ard for $est
9erformance and has continued to succeed b& achieving the #hei/h "halifa 6.cellence
a%ards in '((:, '((5 and '((; -he <8)A Accreditation has recentl& been a%arded to Al
Noor Hospital Al Ain 8it&, Al Noor Hospital "halifa #treet and Al Noor Hospital Airport
!oad, Abu Dhabi )n '((9, Al Noor %as presented %ith the acclaimed #hei/h "halifa
6.cellence A%ard, =old 8ategor& for its contribution to healthcare
=oing be&ond healthcare to promote health& living, Al Noor ta/es a profound interest in
creating a%areness about health issues in the region, including diabetes and obesit& Al
Noor0s number one priorit& is to serve the societ& %ith the best healthcare services and is
committed to maintain its position as one of the finest providers of healthcare in the
private sector
1
http://www.anoorhospta.com/
3
Operations management
7perations management is an area of management concerned with overseeing,
designing, and controlling the process of production and redesigning business
operations in the production of goods or services. It involves the responsibility
of ensuring that businessoperations are efficient in terms of using as few
resources as needed, and effective in terms of meeting customer requirements. It
is concerned with managing the process that converts inputs (in the forms
of materials, labor, and energy) into outputs (in the form of goods andor
services). !he relationship of operations management to senior management in
commercial conte"ts can be compared to the relationship of line officers to
highest#level senior officers inmilitary science. !he highest#level officers shape
the strategy and revise it over time, while the line officers
ma$e tactical decisions in support of carrying out the strategy. In business as in
military affairs, the boundaries between levels are not always distinct% tactical
information dynamically informs strategy, and individual people often move
between roles over time.
4
The Governng Board of a hospta/heath system s responsbe for
that hosptas pannng process. A strategc pannng process must be
estabshed to poston the hospta/heath system n a rapdy
changng envronment.
Strategc pannng s the process of determnng what an organzaton
wants to be n the future and how t w get there. Hosptas that
deveop and mpement strategc pans tend to be more successfu
than those that dont.
Strategc pannng s dfferent from short-term or operatona pannng.
Operatona pannng usuay focuses on an annua cyce and requres
the deveopment of yeary ob|ectves and pans. Ths becomes part of
the annua budgetng process. Operatona pans ay out how the
hospta w move toward ts future durng that year. The future s
descrbed n the hosptas strategc pan.
Strategc pannng requres that choces be made about your hosptas
future. These choces concern your vson and msson, the goas to be
pursued, what servces w be offered and to whom, the resources
that w be needed (peope, factes, technoogy, money and
knowedge) and how they w be acqured.
IMPORTANCE OF TRATE!IC P"ANNIN!
A hospta/heath system shoud pan for ts future to:
Improve the hosptas performance
Determne the hosptas future drecton
Provde hgh quaty heath care servces
Optmze resource aocaton
Meet accredtaton and reguatory requrements
Meet the hosptas vson and msson statement
Maxmze ts chances for success
Strategc pannng s wdey practced by Washngton hosptas and
heath systems. Strategc pannng can have a postve effect on a
hospta, but t s not the answer n a stuatons or to a probems.
Before engagng n strategc pannng, the Governng Board needs to:
Understand what strategc pannng s and how to do t
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Determne f the hospta s stabe. If the hospta s n a crss - for
exampe, n danger of cosng - the crss must be deat wth
mmedatey
Identfy whether a need for change exsts
Be commtted to the pannng process and ncude the partcpaton
of the hospta admnstraton, communty, physcans and staff
Decde f the hospta has the capabty, resources and
commtment needed for the pannng process
Pannng takes tme and money. Both must be aotted to the process.
It s mportant to make sure that the necessary resources, ncudng
Board and staff tme, are avaabe to pan for the future and keep
operatng n the present.
RO"E AN# REPONI$I"ITIE
GOVERNING BOARD
The Governng Board has the prncpa responsbty for strategc
pannng. The Board gudes the deveopment of the pan consstent
wth the hosptas msson, phosophy and vaues. The roe of the
Governng Board n strategc pannng process ncudes:
Approva of the hosptas vson, msson statement and goas
Suggeston and consderatons of strateges
Approva of the strategc pan and ts mpementaton
Montorng and updatng the pan and ts mpementaton
The char of the Governng Board apponts the Strategc Pannng
Commttee.
STRATEGIC PLANNING COMMITTEE
The Strategc Pannng Commttee s responsbe for:

Organzng the pannng process
Schedung and conductng meetngs
Focusng the pannng process
Ensurng that Board and communty vaues are refected n the pan
Deveopng the strategc pan
Perodcay revewng the hosptas msson and vson statement
Montorng trends, demographcs, technoogy and communty
needs
Revewng and approvng annua strategc pannng goas and
ob|ectves
Montorng progress toward ob|ectves
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CHIEF EXECUTIVE OFFICER
The hosptas chef executve offcer (CEO) s nvoved n the pannng
process as a strategst, organzer, tactcan and factator. The CEO s
responsbe for carryng out the strategc pan after t s approved by
the Board.
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MEDICAL STAFF
Invovement of the medca staff n strategc pannng s fundamenta
to ensurng the deveopment and mpementaton of the strategc
pan. Ths nvovement can take severa forms. Representatves of
the medca staff shoud serve on the Strategc Pannng Commttee.
The medca staff may have ts own pannng responsbtes and, upon
competon of those responsbtes, report the resuts to the Strategc
Pannng Commttee.
DEPARTMENT HEADS
Hospta department heads make an extremey vauabe contrbuton
to the strategc pannng process. Ther nterna, functona pannng
serves a ma|or roe n deveopng ob|ectves, weghng aternatves
and mpementng the Board-approved pan.
PATIENTS AND COMMUNITY
The roe of patents and the communty n the strategc pannng
process merts speca consderaton, for these groups provde
nformaton whch nourshes two vta steps n the hosptas pannng:
anayss of the nterna and externa envronments, and deveopment
of the hosptas msson. Whe actua partcpaton by these groups n
the process may be mted, communty and patent use of and
atttudes about the hospta are refected n a steps of the pannng
process.
PLANNER
The hospta panner s nvoved n staffng a aspects of the pannng
process. The panner performs feasbty and pannng studes,
deveops the envronmenta assessment for the Strategc Pannng
Commttees consderaton and provdes assstance n deveopng the
pans format, tmetabes and evauaton procedures. In hosptas
wthout a panner, these functons are the responsbty of the chef
executve offcer and/or admnstratve staff.
CONSULTANTS
Consutants are hepfu n the strategc pannng process to:
Prepare the Governng Board for the pannng process through
educaton or retreats
Gve an ob|ectve assessment of the hosptas strengths and
weaknesses
Steer the Board and Strategc Pannng Commttee through the
process
Keep the pannng process on track
8
A consutant cannot substtute for the Boards unque knowedge of
the hospta and ts msson. The consutant s not the panner.
9
THE TEP OF THE TRATE!IC P"ANNIN!
The steps of the strategc pannng process usuay ncude:
Get organzed
Perform an envronmenta assessment
Deveop a vson
Deveop the msson statement
Deveop strateges
Prepare the strategc pan
Approve the pan
Impement the pan
Montor and update the pan
Each Governng Board shoud desgn a process that s reastc and
that works for ts hospta. Steps can be combned and competed at
the same tme. They may be competed n a dfferent order
dependng on the pannng process. Pannng shoud focus on the
crtca ssues that w determne the hosptas future success or
faure. As you desgn your strategc pannng process, answer these
questons:
What s the Governng Boards experence wth pannng?
What s the Boards commtment to strategc pannng?
How much tme and resources are needed from the Board,
admnstraton and staff?
Does the Board or hospta have a knowedgeabe person to gude
the pannng process?
What technca or potca ssues may arse?
Strategc pans have been competed n a one-day retreat. However,
t s more key to take 40 to 120 hours of actua Strategc Pannng
Commttee meetng tme. The ength of tme depends on the
avaabty of needed nformaton, the expertse of the Strategc
Pannng Commttee and the staff and resources aocated to the
process.
Two to sx hours s a good ength for Strategc Pannng Commttee
meetngs. Meetngs shoud be ong enough to dscuss ssues and
shoud occur at east once every two weeks unt the pan s
competed.
10
Wth the recent rapd changes n the heath care envronment,
hosptas may want to deveop a two- to three-year strategc pan wth
an annua update and revew.
11
GET ORGANIZED
Everyone needs to be commtted to the pannng process. Dont begn
wthout the commtment of Board members, the CEO and the medca
staff. Learn about strategc pannng and how your hospta can use t.
Dscuss what strategc pannng can accompsh, any concerns Board
members have and what probems may occur. Decde f outsde hep
s needed. Outne the pannng steps your hospta w take.
It s mportant not to desgn a pannng process that takes more tme
than can reastcay be expected from staff or the Board. Form a
pannng team of fve to ten peope. The arger the team, the more
structure w be needed at strategc pannng team meetngs. The
team coud ncude:
Board representatves
The CEO
Medca staff representatves
Staff members who have patent care responsbtes
Communty representatves
Consutants or other resource peope
The pannng team members need to be abe to work together, have
dfferent vewponts, be creatve and understand heath care trends
and the hospta.
PERFORM AN ENVIRONMENTAL ASSESSMENT
One step n strategc pannng s a thorough, ob|ectve envronmenta
assessment. Ths ncudes a reastc assessment of the hosptas
hstory and present stuaton, ts strengths, weaknesses, opportuntes
and threats (SWOT). The resut of ths anayss s a st of crtca
ssues for the future. The hospta functons n two envronments -
externa and nterna.
The Interna Assessment
Revew your hosptas hstory ncudng ts begnnng, orgna msson
and servces, any sgnfcant events, ma|or changes, successes or
faures and vaues or tradtons.
Revew the hosptas present envronment ncudng servces,
products, programs, staffng, fnanca poston and current pans.
Hstorca and pro|ected utzaton statstcs, patent orgn data and
fnanca reports, as we as medca staff profes and patent opnon
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pos, are nstructve and shoud be gathered. Ths nformaton,
prepared by consutants or admnstratve staff, provdes a sense of
how the hospta has evoved.
Through ts Strategc Pannng Commttee, the Governng Board
probes and assesses the nsttutons current nterna poston. Ths
assessment of strengths and weaknesses may be dffcut or even
unpeasant. A candd evauaton performed at ths stage s necessary
to poston the hospta for a strong future.
The Externa Assessment
Every hospta functons wthn a arger settng, and s affected by
surroundng forces. The externa assessment focuses on demographc
data, potca trends, soca change, the economc cmate, communty
perceptons and compettve provders. Pantng scenaros of how the
hospta mght be affected s hepfu n exporng threats, opportuntes
and potenta strateges.
DEVELOP A VISION
Strategc pannng s about beng ready for the future. It s aso about
creatng your hosptas future. The vson statement descrbes the
way you want the hospta to be n the future. Dscussons about the
hosptas vson ncude:
Carfcaton of the organzatons vaues
Agreement on the basc beefs that gude the hospta
Exporng what deas and trends coud change the way the hospta
s dong busness
Identfyng what needs are emergng as a resut of demographc,
technoogca, economca, potca and reguatory trends
Identfyng who s needed to make the vson possbe
REVIEW THE MISSION STATEMENT
The msson statement provdes the purpose or reasons for the
hosptas exstence. It expresses phosophy, communty servce,
research or educatona commtments, affatons and ma|or functons
or servces offered by the hospta.
The msson statement shoud be a specfc, succnct artcuaton of
what the Board wshes the hospta to be. Athough the msson
statement defnes what a hospta s, t aso sets forth any mts or
restrctons on a hosptas actvtes. The hosptas artces of
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ncorporaton, charter, enabng egsaton, Board mnutes and annua
reports are vauabe sources for the revew and deveopment of the
msson statement. The msson statement estabshes the gudng
prncpes from whch the strategc pannng process fows. Your
msson statement s unque to your hospta.
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DEVELOP STRATEGIES
There are three methods whch are used for deveopng strateges for
the future. Strateges te "how to get there." These are:
Goa approach
Crtca ssues approach
Scenaro approach
Goa Approach
Once the Board has approved vson and msson statements,
deveopment and prortzaton of goas becomes the next chaenge.
A goa dentfes an end to whch the organzaton aspres, what s
hoped to be acheved. For purposes of carfcaton, ths s
dstngushed from an ob|ectve, whch s an actvty necessary to
reach the goa.
Each proposed goa shoud be examned aganst communty need and
acceptabty, reaton to the msson, feasbty and effectveness n
addressng a probem or concern. Obtanng a consensus on goa
prortes may be dffcut, for t cas nto pay a compex set of vaue
|udgments, bases and dfferences n degree of reatve urgency or
mportance. Recognzng that resources are mted s a key
consderaton.
The next step s to expore optons for achevng organzatona goas.
Here, creatvty s a wecome sk for dscoverng nnovatve strateges
or soutons. The Strategc Pannng Commttee generates severa
possbe approaches to accompsh goas. Each aternatve s then
sub|ected to an evauaton of costs, equpment and personne
resources, benefts and constrants. Consutants and the experences
of other hosptas may prove hepfu n assembng the nformaton
needed to assess each opton.
Upon competon of ths research, the Commttee focuses on seectng
the most approprate specfc course(s) of acton. If numerous steps or
ob|ectves are necessary to acheve each goa, deveop a breakdown
of those goas whch woud requre two to fve years, as we as short-
term actons. In ths way, goas are ess overwhemng, and
organzatona achevement of each goa s another step toward the
desred end.
Crtca Issues Approach
15
The resut of the envronmenta assessment s a st of crtca ssues.
Take ths st and focus on the four to eght ssues most crtca to your
hosptas future. Each ssue shoud be stated n queston form. Put
the crtca ssues n a ogca order. Each ssue shoud be dscussed,
possbe soutons/optons dentfed and the best soutons seected.
The hosptas strategy for the future becomes cear after a of the
crtca ssues questons are answered. That strategy needs to be
revewed for carty and coherence. The strategc pan s then
deveoped.
Conclusion
The scenaro approach requres the deveopment of severa pctures
(scenaros) of what your hospta mght be n one, two or more years.
Scenaros shoud be evauated n terms of your hosptas vson and
msson, communty needs and fnanca feasbty. Identfy the
advantages and dsadvantages of each scenaro and seect one. The
chosen scenaro may be a combnaton of more than one orgna
scenaro. Determne f the scenaro s feasbe, and then transate t
nto a strategc pan.
The scenaro approach s partcuary usefu when deang wth ma|or
changes n heath care devery, ts emphass or drecton. It produces
"bg pcture" thnkng, s fary quck and peope fnd t nterestng.
The scenaro and crtca ssues approaches can be used wth the goa
approach. After the strategy for your hosptas future has been
dentfed usng the scenaro or crtca ssues approach, specfc goas
can be determned usng the goa approach.
PREPARE THE STRATEGIC PLAN
Documentaton of the decsons made occurs through preparaton of
the strategc pan. Focusng on goas, strateges and ob|ectves, the
Strategc Pannng Commttee assgns responsbty for achevng
these ob|ectves, specfes the tmetabe by whch each s to be
accompshed and determnes what resources are requred to
accompsh each ob|ectve.
The pan shoud serve as a gude for a actvty and drect the hospta
toward a preferred future. A smpe, bref pan wth short- and ong-
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term ob|ectves encourages the hospta to move ahead and
specfcay dentfes the path for dong so.
Decde on the format for your wrtten strategc pan and outne what
t w ook ke, based on the needs of your hospta. The pan mght
ncude:
Summary of the strategc pannng process
Hstory of the hospta
Vson statement
Msson statement
Target popuaton
Communty served by the hospta
Future ssues facng the hospta
Anayss of strengths and weaknesses, ncudng market share and
competton, factes, programs and servces, medca staff,
operatons and fnances
Assumptons upon whch the pan s based
Goas and ob|ectves
Impementaton strateges
Organzatona structure panned for the future
Pans for budngs, technoogy or renovaton
Marketng pans
Key reatonshps and how they w be mantaned, mproved or
deveoped
Organzatona poces for the future
Pans for the Governng Board - structure, roe and responsbtes
Contngency pans
Draft your strategc pan. It s easer f one to two members of the
Strategc Pannng Commttee put together the draft of the pan.
APPROVE THE PLAN
The Strategc Pannng Commttee revews the draft. The draft pan
shoud aso be revewed by others, such as staff members, nterested
communty eaders and peope who have a stake n the hosptas
future. Then make needed revsons. It s mportant to deveop a pan
that can be understood and carred out. The Commttee submts the
pan for Board approva.
IMPLEMENT THE PLAN
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The Board authorzes the CEO to ntate the mpementaton process
through pocy modfcatons, hrng staff or purchasng equpment,
appontng speca task forces or aocatng and budgetng funds.
The Board, the communty and the medca and hospta staff shoud
be aware of and understand the pan. The pan shoud be
communcated to a.
MONITOR AND UPDATE THE STRATEGIC PLAN
Strategc pans shoud be montored contnuay and updated annuay.
Gven the rapdy changng heath care envronment, quartery revews
of processes may be needed. Updatng of the strategc pan shoud
occur before budget deveopment. Updatng requres revewng the
hosptas performance, the pans ob|ectves, changes n
opportuntes, threats, strengths and weaknesses and crtca ssues.
Revsons to the pan are then made and ncuded n the budget.
The strategc pan needs to be ad|usted when condtons change,
when new nformaton becomes avaabe or when the heath care
devery system changes.
REO%RCE
More nformaton about strategc pannng for heathcare organzatons
can be found n the foowng webstes and books:
1. Center for Heathcare Governance: www.americangovernance.com
2. Amercan Hospta Assocaton: www.aha.org
3. The Governance Insttute: www.governanceinstitute.com
4. Heathcare Strategc Pannng, 2
nd
Edton by Aan Zuckerman,
FACHE
5. Fundamentas of Strategc Pannng for Heathcare Organzatons
by Robert Stevens, Davd Loudon and R. Henry Mgore.
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http://www.anoorhospta.com/
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