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Strategic Planning in Pharmacy Operations. LEARNING OBJECTIVES. 1. Provide an overview of planning activities conducted by pharmacy and health care organizations. 2. Describe the general process common to all types of planning.

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learning objectives
LEARNING OBJECTIVES

1. Provide an overview of planning activities conducted by pharmacy and health care organizations.

2. Describe the general process common to all types of planning.

3. Describe the purpose of strategic planning, and illustrate the specific steps to develop a strategic plan.

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4. Differentiate a vision statement from a mission statement.

5. Highlight examples of strategic planning in pharmacy organizations.

6. Identify barriers and limitations to planning.

planning
planning
  • represents the purposeful efforts taken by an organization to maximize its future success.
  • Planning has been described as one of the four key functions of managers (along with organizing, leading, and controlling).
  • Many different types of planning activities occur within pharmacy organizations. The most common types include
  • Business planning
  • Financial planning
  • Operational planning
  • Resource planning
  • Organizational
  • Planning
  • Strategic planning.
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Steps in the Planning Process

1. Define or orient the planning process to a singular purpose or a desired result (vision/ mission).

2. Assess the current situation.

3. Establish goals.

4. Identify strategies to reach those goals.

5. Establish objectives that support progress toward those goals.

6. Define responsibilities and timelines for each objective.

7. Write and communicate the plan.

8. Monitor progress toward meeting goals and objectives.

strategic planning
STRATEGIC PLANNING
  • Strategic planning has been defined as the process of selecting an organization’s goals, determining the policies and programs (strategies) necessary to achieve specific objectives en route to those goals, and establishing methods necessary to ensure that the policies and strategic programs are implemented
  • The purpose of strategic planning is to ensure that the organization is doing the right things now and in the future.
  • Strategic planning addresses what business the organization is in or ought to be in and helps to determine long-term goals for the organization.
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Strategic planning can be either reactive or proactive.

Reactive strategic planning is not the ideal, but it is often necessary, especially in industries that are changing rapidly (such as health care).

proactive strategic planning enables an organization to control its environment instead of vice versa.(create or recreate the business environment)

  • Strategic planning has also been called long-term planning. The actual timeline used by organizations may vary or in some cases may not be known
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The time horizon for strategic planning may be as long as 10 to 20 years or as short as 2 years

Problems with strategic planning

  • goals that incorporate new paradoxes or visionary changes may be difficult for employees to believe if the time period for accomplishing those goals is too short
  • it is not likely to result in any truly sustainable competitive advantages or a significant organizational metamorphosis
vision and mission
Vision and Mission
  • The vision is what the pharmacy organization wants to be at some future time point
  • The vision statement should make people think and should motivate people to strive for something greater.
  • The vision of the organization is used in the strategic planning process as both the beginning point and the end point
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The vision is also used to define the mission of the organization

  • The mission is the purpose of the company.
  • The mission statement defines what the company does or is. It is a statement of the present going ahead into the near future.
  • The mission statement should be short—usually no more than two sentences.
  • It focuses on the common purpose of the organization and may draw from the values or beliefs held by the organization.
  • The mission statement should help to differentiate the company from others that provide the same products or services
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Elements suggested in developing a mission statement for a community pharmacy

  • The intended (or target) customers,
  • The core values of the pharmacy (such as compassion, respect, and confidentiality)
  • The key services and products provided by the pharmacy,
  • The benefits incurred by customers (such as improved health and improved safety)
  • Desired public image of the pharmacy
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Companies use slogans to convey a message to customers about the organization

  • The company slogan generally is more marketing-driven than is the mission statement, but in some cases the company slogan serves a similar role.
process of strategic planning
Process of Strategic Planning

Preplanning Phase

  • Preplanning can be defined as the steps necessary to organize the strategic planning effort—or “planning for the planning.” Strategic planning is a significant undertaking that consumes much time and energy
  • Preplanning should also define the objectives of the planning efforts and the procedures that will be used to accomplish those objectives
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Preplanning should define who should be involved, where the planning process will occur, and how much time it will take.

  • Preplanning should also consider any political purposes and ramifications of the undertaking.
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Planning Phase

  • Ideas are actively generated for the pharmacy organization (strategizing) started by establishing the destination (like traveling)
  • In strategic planning, the “destination” is the vision of the organization in the future.
  • Situation analysis to identify where, what, and how the organization is in the present
  • Based on the vision (destination), along with the present situation (starting point), planners next should identify the goals for the organization
  • determine objectives that will help to reach the goals
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A common method for conducting the situation analysis is to evaluate the internal strengths and weakness of the organization and the external opportunities and threats to the organization. This is known as a SWOT (Strength, Weaknesses, Opportunities, Threats) analysis.

  • By comparing the results of the situation analysis with the desired future state (vision), the extent and nature of the gap between the two begins to become clear.
  • The next steps in the planning phase attempt to bridge that gap
  • The last part of the planning process deals with organizing to operationalize the strategy
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Strategic plan contain the following key elements:

(1) The organization’s vision

(2) Strategies

(3) goals for each strategy

(4)objectives required to meet those goals

(5) tasks or action plans to compete the objectives

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Post planning Phase

  • This phase includes three steps:

(1)communicating the plan

(2) Implementing the plan

(3)Monitoring progress once the plan is implemented.

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Limitations

  • planning is, to some degree, guesswork (but educated and experienced guesswork, hopefully)
  • plans and predictions are only as good as the data and information that go into them
  • Planning is not a substitute for action
  • Planning should be a continuous process
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1.Select a specific pharmacy practice setting (i.e., hospital

practice, community practice, or managed

care). What barriers do you believe would limit the

ability of pharmacists and pharmacy managers to

conduct effective planning in that setting?

2. Write a vision statement for a hypothetical pharmacy

organization. Explain how you selected the

language and message of the statement.

3. Conduct an Internet search of vision and mission

statements of health care organizations. Identify and

compare the statements from at least three different

organizations. What are the strengths and weakness

of these statements?

4. What are the different activities that pharmacies

and health care organizations engage in when they

plan for the future?