Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals
Organizations differ considerably in their rate of performance improvement. Because any improvement trajectory is the fruit of a series of improvement projects, the proximate cause of this variation among organizations lies in the varied ways these projects are managed. The success of these projects depends, however, not only on the goals and the efforts of the project team, but also on the context within which the projects are undertaken--and, more specifically, on the competencies on which the projects can draw. It is variation in these competencies--the organization's underlying "performance improvement capability" (PIC)--that explains the substantial and sustained differences in rates of improvement across organizations. This article describes the efforts of several hospitals to strengthen their PIC through five key components: skills, systems, structure, strategy, and culture.
Authors :: Paul S. Adler, Patricia Riley, Seok-Woo Kwon, Jordana Signer
Swot Analysis of "Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals" written by Paul S. Adler, Patricia Riley, Seok-Woo Kwon, Jordana Signer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Improvement Projects facing as an external strategic factors. Some of the topics covered in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals case study are - Strategic Management Strategies, Developing employees, Organizational culture, Project management and Organizational Development.
Some of the macro environment factors that can be used to understand the Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals casestudy better are - – supply chains are disrupted by pandemic , technology disruption, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Improvement Projects, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Improvement Projects 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals can be done for the following purposes –
1. Strategic planning using facts provided in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals case study
2. Improving business portfolio management of Improvement Projects
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 Improvement Projects
Strengths Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Improvement Projects in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals Harvard Business Review case study are -
High brand equity
– Improvement Projects has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Improvement Projects to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Improvement Projects digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Improvement Projects 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.
Effective Research and Development (R&D)
– Improvement Projects has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Improvement Projects 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.
Analytics focus
– Improvement Projects 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 Paul S. Adler, Patricia Riley, Seok-Woo Kwon, Jordana Signer 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.
Innovation driven organization
– Improvement Projects is one of the most innovative firm in sector. Manager in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Improvement Projects is one of the leading recruiters in the industry. Managers in the Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Improvement Projects 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Improvement Projects has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Improvement Projects 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.
Operational resilience
– The operational resilience strategy in the Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Improvement Projects 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.
Sustainable margins compare to other players in Organizational Development industry
– Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals firm has clearly differentiated products in the market place. This has enabled Improvement Projects to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Improvement Projects to invest into research and development (R&D) and innovation.
Weaknesses Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals, in the dynamic environment Improvement Projects has struggled to respond to the nimble upstart competition. Improvement Projects has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Improvement Projects 's lucrative customers.
Need for greater diversity
– Improvement Projects 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.
Interest costs
– Compare to the competition, Improvement Projects 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.
Capital Spending Reduction
– Even during the low interest decade, Improvement Projects 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.
Products dominated business model
– Even though Improvement Projects has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Improvement Projects is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Improvement Projects needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Improvement Projects to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals, is just above the industry average. Improvement Projects 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Improvement Projects 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.
Slow decision making process
– As mentioned earlier in the report, Improvement Projects has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Improvement Projects even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals, it seems that the employees of Improvement Projects 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals | 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals are -
Creating value in data economy
– The success of analytics program of Improvement Projects has opened avenues for new revenue streams for the organization in the industry. This can help Improvement Projects to build a more holistic ecosystem as suggested in the Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals case study. Improvement Projects can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Improvement Projects to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Improvement Projects to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Improvement Projects 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, Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Improvement Projects 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.
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. Improvement Projects 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. Improvement Projects 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Improvement Projects 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.
Better consumer reach
– The expansion of the 5G network will help Improvement Projects to increase its market reach. Improvement Projects 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.
Leveraging digital technologies
– Improvement Projects 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.
Buying journey improvements
– Improvement Projects can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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.
Using analytics as competitive advantage
– Improvement Projects 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Improvement Projects to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Improvement Projects 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Improvement Projects can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Improvement Projects 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.
Threats Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals, Improvement Projects 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Improvement Projects 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 Improvement Projects.
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 Improvement Projects in the Organizational Development sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Improvement Projects 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.
High dependence on third party suppliers
– Improvement Projects 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.
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. Improvement Projects needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Improvement Projects can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Improvement Projects 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 Improvement Projects business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Improvement Projects 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.
Increasing wage structure of Improvement Projects
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Improvement Projects.
Weighted SWOT Analysis of Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Improvement Projects needs to make to build a sustainable competitive advantage.
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