HPI4008 Strategic Management, Leadership and Organisational Change in Health Care
Content:
1. Week 1: Strategic Management (learning goals + answers from the literature and video
lectures)
2. Week 2: Professionalism and professional organizations (learning goals + answers from the
literature and video lectures)
3. Week 3: Organisational change (learning goals + answers from the literature and video
lectures)
4. Weeks 1-3: Leadership (literature)
,Week 1 – Strategic management
Literature:
- Walston, S.L., & Chou, A.F. (2012). Strategic Thinking and Competitive Advantage (Chapter 10).
- M. Porter (2010). What is value in health care? New England Journal of Medicine 363(26).
- D’Aunno T., Alexander J. A., & Jiang L. (2017). Creating value for participants in multistakeholder alliances: The
shifting importance of leadership and collaborative decision-making over time. Health Care Management Review,
42(2), 100–111.
- Bowen, J., & Ford, R. C. (2002). Managing service organizations: Does having a “thing” make a difference? Journal
of Management, 28, 447-469.
- Porter ME. 1996. What is strategy? Harvard BusinessReview 74(6): 61–78.
- Pablo, A. L., Reay, T., Dewald, J. R., & Casebeer, A. L. 2007. Identifying, enabling and managing dynamic
capabilities in the public sector. Journal of MS, 44: 687-708.
- Youtube videos (3)
Learning goals and answers:
1. What is (relation between);
a. Strategic management
Strategic management: ‘setting overall, long-term goals and directions’ (what).
Strategic management: an integrative management field that combines analysis, formulation, and
implementation in the quest for competitive advantage. This is a dynamic, iterative and cyclic
process of:
- Goal formulation;
- Environmental scanning;
- Strategy formulation;
- Strategy evaluation;
- Implementation;
- Strategic control.
b. (Types of) strategy
In short, strategy boils down to a plan for interacting with the competitive environment to achieve
organizational goals.
Strategies – Mintzberg & Waters
Intended and realised strategies: strategies which the
organization planned to implement versus those which it
actually did implement
Deliberate and emergent strategies: strategies which have
been realized as intended versus strategies that emerged
despite (or in the absence of) intentions
Porter – competitive strategy
- Strategic trade-offs: choices between a cost or value position. Such choices are necessary
because higher value tends to require higher cost
- Differentiation strategy: generic business strategy that seeks to create higher value for
customers than the value that competitors create, by delivering products or services with
unique features while keeping the firm’s cost structure at the same or similar levels
(example: high end nursing home)
- Cost-leadership strategy: generic business strategy that seeks to create the same or similar
value for customers by delivering products or services at a lower cost than competitors,
enabling the firm to offer lower prices to its customers (example: generic medicines)
, - Focussed aspect: whether or you are tailoring your service or product towards a singular
purpose/part of the market
Value drivers (differentiation):
- Product features
- Customer service
- Complements
Strategies – Miles & Snow
Managers seek to formulate strategies that will be congruent with the organization’s external
environment
Prospectors Defenders Reactors Analyzers
Extend their success Concentrate upon Respond arbitrarily Take a middle ground
through global expansions existing operations to strategic actions approach between
and finding new market and defending their initiated by being prospectors and
opportunities home turfs competitors defenders
Managers seek to formulate strategies that will be congruent with the organization’s external
environment. Pharma example:
- Prospector:
o Creating a new market by introducing a new drug (patented drug).
- If the patent expires
o Defender: defending your market share by still dominating prescriptions due to
lowering cost and keeping brand-status.
o Reactor: creates generics in order to conquer some of the market share
o Analyze: In x years, the patent is going to expire, what will be the best option
(defend, react, escape the market etc. → middle ground position)
Red and blue ocean strategy thinking - Kim & Mauborgne
Blue ocean strategy Red ocean strategy
- Create uncontested market space - Compete in existing market space
- Make the competition irrelevant - Beat the competition
- Create and capture new demand - Exploit existing demand
- Break the value-cost trade off - Make the value-cost trade off
- Pursue low cost and differentiation - Pursue low-cost or differentiation
Foundation of strategy formulation
- Values: expression of the ethics that guide actions. Values should constrain how the mission
and vision are accomplished
- Mission is (should be) the foundation of strategic direction in an organization
- Vision: statement of what the organization wants to become. It focuses on the future
