Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
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Case Study SWOT Analysis Solution
Case Study Description of Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change
The importance of hospitals learning from their failures hardly needs to be stated. Not only are matters of life and death at stake on a daily basis, but also an increasing number of U.S. hospitals are operating in the red. This article reports on in-depth qualitative field research of nurses' responses to process failures in nine hospitals. It identifies two types of process failures--errors and problems--and discusses the implications of each for process improvement. A dynamic model of the system in which frontline workers operate reveals an illusory equilibrium in which small process failures actually erode organizational effectiveness rather than drive learning and change in hospitals. Three managerial levers for change are identified, suggesting a new strategy for improving hospitals' and other service organizations' ability to learn from failure.
Swot Analysis of "Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change" written by Anita Tucker, Amy C. Edmondson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospitals Failures facing as an external strategic factors. Some of the topics covered in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change case study are - Strategic Management Strategies, Psychology, Technology and Organizational Development.
Some of the macro environment factors that can be used to understand the Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change casestudy better are - – central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption,
challanges to central banks by blockchain based private currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospitals Failures, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospitals Failures operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change can be done for the following purposes –
1. Strategic planning using facts provided in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change case study
2. Improving business portfolio management of Hospitals Failures
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hospitals Failures
Strengths Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hospitals Failures in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change Harvard Business Review case study are -
Innovation driven organization
– Hospitals Failures is one of the most innovative firm in sector. Manager in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Hospitals Failures is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Hospitals Failures has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Hospitals Failures has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hospitals Failures to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Organizational Development industry
– Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change firm has clearly differentiated products in the market place. This has enabled Hospitals Failures to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Hospitals Failures to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Hospitals Failures are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Hospitals Failures
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hospitals Failures does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Hospitals Failures has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hospitals Failures has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Hospitals Failures is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Hospitals Failures is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Superior customer experience
– The customer experience strategy of Hospitals Failures in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Hospitals Failures has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change are -
Skills based hiring
– The stress on hiring functional specialists at Hospitals Failures has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Hospitals Failures products
– To increase the profitability and margins on the products, Hospitals Failures needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Anita Tucker, Amy C. Edmondson suggests that, Hospitals Failures is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
No frontier risks strategy
– After analyzing the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change, is just above the industry average. Hospitals Failures needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Hospitals Failures has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hospitals Failures is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hospitals Failures 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change can leverage the sales team experience to cultivate customer relationships as Hospitals Failures is planning to shift buying processes online.
Interest costs
– Compare to the competition, Hospitals Failures has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Hospitals Failures has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Hospitals Failures can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hospitals Failures can use these opportunities to build new business models that can help the communities that Hospitals Failures operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Buying journey improvements
– Hospitals Failures can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hospitals Failures can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Hospitals Failures to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Leveraging digital technologies
– Hospitals Failures can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Hospitals Failures can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Hospitals Failures can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hospitals Failures can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at Hospitals Failures can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hospitals Failures can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hospitals Failures can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Hospitals Failures to increase its market reach. Hospitals Failures will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hospitals Failures is facing challenges because of the dominance of functional experts in the organization. Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change, Hospitals Failures may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Hospitals Failures needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Hospitals Failures can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Hospitals Failures in the Organizational Development sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hospitals Failures with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Hospitals Failures business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Hospitals Failures has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Hospitals Failures needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hospitals Failures in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Hospitals Failures.
High dependence on third party suppliers
– Hospitals Failures high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Environmental challenges
– Hospitals Failures needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Hospitals Failures can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Regulatory challenges
– Hospitals Failures needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Weighted SWOT Analysis of Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Hospitals Failures needs to make to build a sustainable competitive advantage.
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