Institute for Healthcare Improvement: The 5 Million Lives Campaign SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Institute for Healthcare Improvement: The 5 Million Lives Campaign
The Institute for Healthcare Improvement's (IHI) 100,000 Lives Campaign ended in June 2006. This 18-month campaign sought to save 100,000 people from unnecessary death in U.S. hospitals, and is the subject of case L-13. To successfully accomplish its goals, IHI enlisted a wide range of organizations, including hospitals, regulatory agencies, insurance companies, medical associations, and other Healthcare-related groups to work together toward the common objective of increasing patient safety. In December, IHI launched a follow-up campaign intended to prevent 5 million instances of medical harm over the next two years. This case describes the 5 Million Lives Campaign, how it built upon the previous campaign, and issues faced by IHI at the end of the effort.
Swot Analysis of "Institute for Healthcare Improvement: The 5 Million Lives Campaign" written by Hayagreeva Rao, David W. Hoyt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ihi Campaign facing as an external strategic factors. Some of the topics covered in Institute for Healthcare Improvement: The 5 Million Lives Campaign case study are - Strategic Management Strategies, Motivating people, Product development and Organizational Development.
Some of the macro environment factors that can be used to understand the Institute for Healthcare Improvement: The 5 Million Lives Campaign casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, wage bills are increasing,
there is backlash against globalization, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Institute for Healthcare Improvement: The 5 Million Lives Campaign
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Institute for Healthcare Improvement: The 5 Million Lives Campaign case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ihi Campaign, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ihi Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign can be done for the following purposes –
1. Strategic planning using facts provided in Institute for Healthcare Improvement: The 5 Million Lives Campaign case study
2. Improving business portfolio management of Ihi Campaign
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 Ihi Campaign
Strengths Institute for Healthcare Improvement: The 5 Million Lives Campaign | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ihi Campaign in Institute for Healthcare Improvement: The 5 Million Lives Campaign Harvard Business Review case study are -
Highly skilled collaborators
– Ihi Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Ihi Campaign in the sector have low bargaining power. Institute for Healthcare Improvement: The 5 Million Lives Campaign has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ihi Campaign to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Ihi Campaign has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ihi Campaign to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Ihi Campaign 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 Ihi Campaign is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Institute for Healthcare Improvement: The 5 Million Lives Campaign Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Ihi Campaign
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ihi Campaign 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 Ihi Campaign 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.
Ability to recruit top talent
– Ihi Campaign is one of the leading recruiters in the industry. Managers in the Institute for Healthcare Improvement: The 5 Million Lives Campaign are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Ihi Campaign in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Ihi Campaign has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ihi Campaign 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.
Strong track record of project management
– Ihi Campaign is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Ihi Campaign has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Institute for Healthcare Improvement: The 5 Million Lives Campaign 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.
Sustainable margins compare to other players in Organizational Development industry
– Institute for Healthcare Improvement: The 5 Million Lives Campaign firm has clearly differentiated products in the market place. This has enabled Ihi Campaign to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Ihi Campaign to invest into research and development (R&D) and innovation.
Weaknesses Institute for Healthcare Improvement: The 5 Million Lives Campaign | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Institute for Healthcare Improvement: The 5 Million Lives Campaign are -
Workers concerns about automation
– As automation is fast increasing in the segment, Ihi Campaign 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign, is just above the industry average. Ihi Campaign 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.
Capital Spending Reduction
– Even during the low interest decade, Ihi Campaign 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 Ihi Campaign 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 - Institute for Healthcare Improvement: The 5 Million Lives Campaign should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign, it seems that the employees of Ihi Campaign 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.
Interest costs
– Compare to the competition, Ihi Campaign 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ihi Campaign is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Institute for Healthcare Improvement: The 5 Million Lives Campaign can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Institute for Healthcare Improvement: The 5 Million Lives Campaign, in the dynamic environment Ihi Campaign has struggled to respond to the nimble upstart competition. Ihi Campaign has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Ihi Campaign 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 cash cycle compare to competitors
Ihi Campaign 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.
Slow to strategic competitive environment developments
– As Institute for Healthcare Improvement: The 5 Million Lives Campaign HBR case study mentions - Ihi Campaign 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.
Opportunities Institute for Healthcare Improvement: The 5 Million Lives Campaign | 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ihi Campaign can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ihi Campaign 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.
Buying journey improvements
– Ihi Campaign can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Institute for Healthcare Improvement: The 5 Million Lives Campaign 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.
Building a culture of innovation
– managers at Ihi Campaign 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ihi Campaign 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 Ihi Campaign to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Ihi Campaign 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.
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 Ihi Campaign in the consumer business. Now Ihi Campaign can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Ihi Campaign has opened avenues for new revenue streams for the organization in the industry. This can help Ihi Campaign to build a more holistic ecosystem as suggested in the Institute for Healthcare Improvement: The 5 Million Lives Campaign case study. Ihi Campaign can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ihi Campaign 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.
Leveraging digital technologies
– Ihi Campaign 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ihi Campaign can use these opportunities to build new business models that can help the communities that Ihi Campaign operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Loyalty marketing
– Ihi Campaign 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.
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. Ihi Campaign can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Institute for Healthcare Improvement: The 5 Million Lives Campaign External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign are -
Technology acceleration in Forth Industrial Revolution
– Ihi Campaign has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Ihi Campaign 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.
Consumer confidence and its impact on Ihi Campaign 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.
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 Ihi Campaign business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ihi Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign .
Shortening product life cycle
– it is one of the major threat that Ihi Campaign is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Ihi Campaign needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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 Ihi Campaign with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Ihi Campaign 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 Ihi Campaign 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.
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. Ihi Campaign 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.
High dependence on third party suppliers
– Ihi Campaign 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.
Weighted SWOT Analysis of Institute for Healthcare Improvement: The 5 Million Lives Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign 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 Institute for Healthcare Improvement: The 5 Million Lives Campaign 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 Ihi Campaign needs to make to build a sustainable competitive advantage.