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 - – central banks are concerned over increasing inflation, increasing commodity prices, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, geopolitical disruptions, increasing energy prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, 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 -
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.
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.
Organizational Resilience of Improvement Projects
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Improvement Projects does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Diverse revenue streams
– Improvement Projects is present in almost all the verticals within the industry. This has provided firm in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
Training and development
– Improvement Projects has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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.
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.
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 -
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.
Lack of clear differentiation of Improvement Projects products
– To increase the profitability and margins on the products, Improvement Projects needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Improvement Projects has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Paul S. Adler, Patricia Riley, Seok-Woo Kwon, Jordana Signer suggests that, Improvement Projects 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.
Aligning sales with marketing
– It come across in the case study Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals can leverage the sales team experience to cultivate customer relationships as Improvement Projects is planning to shift buying processes online.
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.
Slow to strategic competitive environment developments
– As Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals HBR case study mentions - Improvement Projects 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.
Skills based hiring
– The stress on hiring functional specialists at Improvement Projects 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.
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.
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.
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 -
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.
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.
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. Improvement Projects can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Improvement Projects to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Improvement Projects is facing challenges because of the dominance of functional experts in the organization. Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals 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.
Building a culture of innovation
– managers at Improvement Projects 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Improvement Projects 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.
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.
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.
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.
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 -
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.
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.
Technology acceleration in Forth Industrial Revolution
– Improvement Projects has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Improvement Projects 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.
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.
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.
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.
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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Improvement Projects 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 Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hospitals .
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.
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.
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.
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.
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.
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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