Despite advances in strategic planning methodology over the last 20 years, many healthcare organizations have yet to adopt a formal approach or process. The methodology used, if any at all, is often the whim of the person occupying the CEO seat.
Harvard professor Robert Kaplan advanced a five-stage strategic planning model two decades ago that has been refined and improved upon over the years. The Kaplan model, which is taught by most major business schools around the world, is used by many of the Fortune 500 companies. Yet, it is still relatively unknown in healthcare planning circles. Here is a crash course in Dr. Kaplan’s design:
Stage 1: Develop the Strategy
This stage includes the development or refinement of mission, vision, and values – the underpinnings of all strategic plans. Following a formal review of MVV, the organization then conducts strategic analysis and develops overarching long-term goals.
Stage 2: Translate the Strategy
This is where measurable objectives are set and strategies and tactics are defined. Strategies and tactics exist for the sole purpose of achieving a quantifiable objective, while the objectives define the goal. The organization’s balanced scorecard and key performance indicators are also developed during this stage.
Stage 3: Plan Operations
The strategic plan is driven through operations, with a focus for improving key processes, allocating resources, and preparing budgets – all of which funnel into dashboards and performas. Following the completion of these steps, the strategic plan is executed.
Stage 4: Monitor and Learn
During the execution of the strategic plan, strategy and operational reviews are held to determine progress. The balanced scorecard, key performance indicators, dashboards, budgets, and performas drive these reviews.
Stage 5: Adapt the Strategy
If necessary, additional strategy analysis is conducted throughout the plan’s execution, and emerging strategies are examined, all to determine if course corrections are required. No strategic plan should be carved in stone, and it is important that the organization is flexible enough to adjust when necessary. Stage 5 then feeds back into Stage 1, as the organization begins another strategic planning cycle in what is a perpetual process.
The Kaplan model is robust enough – and flexible enough – to meet the needs of any company, healthcare organizations included. If your strategic planning process is not as bullet-proof as the Kaplan methodology, your organization might do well to adopt this design.








