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Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

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.

Authors :: Anita Tucker, Amy C. Edmondson

Topics :: Organizational Development

Tags :: Psychology, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

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 - – wage bills are increasing, geopolitical disruptions, increasing transportation and logistics costs, increasing energy prices, challanges to central banks by blockchain based private currencies, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, etc



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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 -

Low bargaining power of suppliers

– Suppliers of Hospitals Failures in the sector have low bargaining power. Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hospitals Failures to manage not only supply disruptions but also source products at highly competitive prices.

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.

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.

Digital Transformation in Organizational Development segment

- digital transformation varies from industry to industry. For Hospitals Failures digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hospitals Failures has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

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.

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.

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.

Analytics focus

– Hospitals Failures is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Anita Tucker, Amy C. Edmondson can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Ability to recruit top talent

– Hospitals Failures is one of the leading recruiters in the industry. Managers in the Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Training and development

– Hospitals Failures has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer 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.

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.






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 -

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.

Slow to strategic competitive environment developments

– As Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change HBR case study mentions - Hospitals Failures takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

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.

Workers concerns about automation

– As automation is fast increasing in the segment, Hospitals Failures needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Capital Spending Reduction

– Even during the low interest decade, Hospitals Failures has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Low market penetration in new markets

– Outside its home market of Hospitals Failures, firm in the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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.

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.

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.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Hospitals Failures supply chain. Even after few cautionary changes mentioned in the HBR case study - Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hospitals Failures vulnerable to further global disruptions in South East Asia.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change, it seems that the employees of Hospitals Failures don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.




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 -

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.

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.

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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Hospitals Failures can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Using analytics as competitive advantage

– Hospitals Failures has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hospitals Failures to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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.

Creating value in data economy

– The success of analytics program of Hospitals Failures has opened avenues for new revenue streams for the organization in the industry. This can help Hospitals Failures to build a more holistic ecosystem as suggested in the Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change case study. Hospitals Failures can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hospitals Failures in the consumer business. Now Hospitals Failures can target international markets with far fewer capital restrictions requirements than the existing system.

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.

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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hospitals Failures in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.

Loyalty marketing

– Hospitals Failures has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

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.




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 -

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.

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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Hospitals Failures can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change .

Shortening product life cycle

– it is one of the major threat that Hospitals Failures is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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.

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.

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.

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.

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.

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.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Hospitals Failures will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

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 .

Consumer confidence and its impact on Hospitals Failures demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.




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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