Strategic Management in Public and Non-Profit Organisations

Strategic Management In Public and non-profit Organisations. Assignment.
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Assignment
ON
Strategic Management in Public and Non-Profit
Organisations
(Leadership and Management in the Health & Social Care
Sector)
Submitted by:
(.................................)
Submitted By:
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(.................................)
Strategic Management in Public and Non-Profit

Organisations
(Leadership and Management in the Health & Social Care
Sector)
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Table of contents
TABLE OF CONTENTS.........................................................................................................3
ABSTRACT........................................................................................................................................... 5
PURPOSE OF THE ASSIGNMENT...................................................................................................... 5
BACKGROUND..................................................................................................................................... 6
INTRODUCTION................................................................................................................................... 6
TASK 1...................................................................................................................................7
1- Strategic decision making in public and non-profit organizations.............................................7
1.1 How identify various techniques to explore the external environment of health care
organization. ....................................................................................................................................... 8
The vital factors of environment of an organization is internal and external, therefore it is
important to be scanned to decide both factors that influence the organizational success. The
environmental scanning consists of the possession and utilization of information about
occasions, patterns, trends, moreover the relationship among the internal and external
environments. It gives managers an inner view to decide the future path of the organization.
Consequently it recognizes the threats and opportunities that exist in the environment. While
strategy formulation take advantages of the opportunities and it minimizes the threats.............8
1.2 An evaluation of complex environment factors affect healthcare organizations.................11
POLITICAL...........................................................................................................................12
SOCIAL...................................................................................................................................12
ECONOMIC...........................................................................................................................12
1.2.1 An analysis of how environmental factors in which strategy for these health care
organizations is developed. ............................................................................................................ 12
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1.3 critically evaluate the impacts of the organizational culture of NHS Walk in Centre on its
strategic decisions............................................................................................................................ 13
TASK-2................................................................................................................................................ 13
2. The key tensions within strategic management..........................................................................13
2.1How the key tensions affect the strategic management...........................................................14
2. 2 A critically evaluation of the impact of key tensions in NHS Walk in Centre culture and its
strategy............................................................................................................................................... 14
2. 3 how these key tensions affect the development of culture and strategy in NHS Walk in
Centre ................................................................................................................................................ 15
TASK 3.................................................................................................................................15
3- The strategy formulation techniques...........................................................................................15
3.1 A critically evaluation of how strategic formulation techniques related with NHS Walk in
Centre ................................................................................................................................................ 16
3.2 The systematic analysis of implementation of strategic formulation techniques in health
and social care................................................................................................................................... 16
3.3 An investigation of potential problems in implementation of strategic formulation
technique............................................................................................................................................ 17
3.4 The Solutions for implement strategic formulation techniques in health and social care.17
TASK 4.................................................................................................................................17
4- The methods to develop strategic decisions..............................................................................17
4.1 A Systematic analysis of organizational scenarios in order to develop strategic
recommendations.............................................................................................................................. 17
4.2- A critically analysis of the appropriateness of the organizational scenarios in order to
develop strategic recommendations in NHS Walk in Centre. .......................................................18
4.3- An analysis of constraints facing in NHS Walk in Centre by managers developing strategic
policies............................................................................................................................................... 18
CONCLUSION.......................................................................................................................19
BIBLIOGRAPHY.............................................................................................................................. 19
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ABSTRACT
This assignment topic deals with the leadership and management in the
health and social care sector in both public and non-profit organisations on
the basis of the situation arises in global economic downtown and different
U.K. government policies, besides that, it deals with the strategic management
in public and non-profit organisation to clearly define the strategic path to
future for overcome the existing problems and improve the performance by
understanding key tensions and applying strategic formulation techniques and
analyses problems and solutions in implementing strategic formulation
techniques and analysing organisational scenarios to develop strategic
recommendations and appropriateness of the recommendations.
PURPOSE OF THE ASSIGNMENT

The aim of this assignment is to critically examine the complexities of
strategic decision making and explore the challenges of operating in a
complex and politically charged environment, moreover analyse the internal
and external environment on which an organization operates to formulate
strategic decisions, especially in particular with the primary care areas of
department of health such as NHS Walk in Centres due to the significance of
assessing local and commissioning care.
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BACKGROUND
Due to the global economic downtown and reduction in public expenses in U.K
health and care sector, it is significant to use the consultants advisory
services in NHS Organisations for their strategic management. On these
circumstances, it is pleasure to provide a devise to NHS WALK IN CENTRES a
strategy that to obtain clarity of direction for future to come over the problems
and improve the performance outcomes.
INTRODUCTION
The organizational construction of NHS made up with various organizations
and each of the individual organization has its own management boards and
budgets. The ultimate aim of those organizations is to provide quality services
to patients and users of the NHS and allied organizations. In addition, there is
private sector involvement in health and care sector creates competency. To
obtain the vision of NHS and with allied organizations such as a patient
centred, clinical led, locally driven NHS, and world class health services
based core values of core principles, it is essential to examine the
complexities of strategic decision making and explore the changes and
challenges, more over analyse both internal and external environment to
formulate strategic decisions.
Refers to (NHS, 2013), the organisational structure of Health Care System
functions as, the Department of Health (DH) funding, directing and also
supporting the NHS, particularly the primary care trusts assessing local needs
and commissioning care and the strategic health authorities managing,
monitoring and improving local. The overall aim of primary care and
secondary care are to provide patients and public to provide information,
quality and safety.
The primary care is NHS Direct, NHS Walk in Centres, GP Practices, Dentists,
Opticians and Pharmacists. The secondary care consists of Emergency and
Urgent Care, Ambulance Trusts, NHS Trusts, Mental Health Trusts and Care
Trusts. (FIG-1)
NHS Walk in Centres

Refers to (NHS, 2013), the NHS Walk in Centres managed by Primary Care
Trusts and providing an offer to convenient access to range of treatment. The
recent and relevant (NHS, 2013) information is that, it will be managed by
Clinical Commissioning Group from April 2013 onwards. This NHS Walk in
Centres deals with minor illness and injuries.
The advantages of NHS Walk in Centres are it is managed by a nurse and the
services available to everyone throughout the year and outside office hours. It
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is successful and complimentary to traditional GP and allows to access

doctors and nurses, besides that dealing with short term life threatening
problems. In addition the NHS Walk in centre possesses resources and skills.
FIG-1
Source- (NHS, 2013)
TASK 1
1- Strategic decision making in public and non-profit organizations.
The strategic decision making involved with the process of creating long term
goals of an organization by mission, vision and objectives, further more it
deciding the courses of actions to pursue to achieve those goals. Therefore
the fundamental part of creating and running an organization required a vision,
mission and a set of goals. It is a continuous process, besides that it create
strategies to achieve goals and make changes and manage it for observed
outcomes. The strategic tools used to analyze internal and external factors,
various strategic options and it may result in obtain the targeted goals.
The public and non-profit organizations obliged to make strategic choices
regarding the investment decisions about resources. Therefore the decision
making tools or models contributes to the organizations mission, money and
merits, besides that it measures the organizations performance on whether it
doing the correct things, financially correct things and doing things right in
quality.
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(Weinberg, 2013)
1.1 How identify various techniques to explore the external environment

of health care organization.
The vital factors of environment of an organization is internal and external, therefore it
is important to be scanned to decide both factors that influence the organizational
success. The environmental scanning consists of the possession and utilization of
information about occasions, patterns, trends, moreover the relationship among
the internal and external environments. It gives managers an inner view to decide
the future path of the organization. Consequently it recognizes the threats and
opportunities that exist in the environment. While strategy formulation take
advantages of the opportunities and it minimizes the threats.
Internal Analysis of the Environments

It is the primary step of environment scanning to observe the internal
organizational environment and it consists of the employee interaction with
other employees and management, managers interaction with other
managers, besides that management interaction with share holders, access to
natural resources, brand awareness, organizational structure, vital staffs and
operational potentials, more over surveys discussions interviews can be used
to assess the internal environment.
(Management Study Guide, 2013)
External Analysis of the Environments

Refers to, (Business Dictionary, 2013) external environment defined as, the
conditions, entities, events and factors surrounding an organization and it
influences the activities and choices and determine its opportunities and risks
and it also called operating environment.
The external analysis of environment correlated with industry environment,
national environment and socio economic environment. It involved with the
appraisal of the competitive structure of the organizations industry, such as
the competitive position and main rivals, besides that it assesses the nature,
stage, dynamics and history of the industry and evaluates the effect of
globalization on competition within the industry.
National environment required to appraise whether the national environment
frame work helping to achieve the competitive advantage of the globalized
environment.
The socio economic environment analyze the social, government, legal,
technological and international factors that affect the environment and the
external analysis of organizations reveals the opportunities and threats of an
organization, besides that both internal and external analysis not only reveals
the present state of the environment of the industry but also predict the future
positions through strategic managers. The common tools used to analyze the
environment are:-
Pest Analysis
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PEST refers to political, economic, social and technological factors that exist
in the environment of an organization and it affect the organizations strategic
goals. The importance of PEST Analysis is, it helps to locate the opportunities
and warn the threats, besides that it shows the direction and it shape the
strategy and work with change instead of against change, more over it avoids
it avoids failure of projects and unconscious assumptions when enter into a
new country, region or a market due to the objective view developed by the
PEST Analysis. After the analysis of political, economical, social and
technological factors, it arrives in opportunities and threats and remedial
actions should be taken for change. (Mind Tools, 2013)
Scenarios
Scenario analysis explore the different future, such as it compares the
possible future events with the alternative possible future outcomes and used
for projection and it may not rely on historical data and past observations that
valid for future, moreover several scenarios demonstrated in a scenario
analysis and generate a combination of an optimistic, pessimistic and most
likely scenario.
The systematic scenario analysis consists of defining the problem by
considering what to achieve and in what time frame, that leads to the scale of
the plan and scenarios that to test, then gather the data to identify the key
factors, trends and uncertainties and next to differentiate the certainties from
uncertainties by prioritizing the largest significant uncertainties in the top of
the priority list, after this developing scenario from top uncertainty and take a
moderately good outcome and moderately bad outcome and develop the
scenarios or story of the future and repeat it, lastly use the scenarios in the
planning process. (Mind Tools, 2013)
Porters Five Forces Analysis

This tool assesses the balance of power in business situation and helps to
recognize the power where it lies in business situation. This helps to
understand the current competitive position consider moving into. It helps to
take advantages of strengths and improve the situation of weaknesses and
avoid moving into wrong steps. The five forces analysis locates the five vital
forces that decide the competitive power in a business situation, such as:1. Supplier power The supplier power deals with the assessment of how
supplier drive up prices, the number of suppliers dealing with, the
uniqueness of their product or services, supplier strength and their
control over customer organization. If fewer the supplier result in need
of more help from supplier.
2. Buyer power Buyer power deals with how buyers drive the price down
and it is driven by number of buyers and individual buyers and the cost
of switching off to another supplier.
3. Competitive rivalry It deals with the number and capability of the
competitors and if monopoly exists , there is more power and if more
competitors with same price creates more rivalry
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4. Threat of substitutes these deals with the ability of customers to find a

substitute product or service. If the substitution is easy and viable or in
case of services the customers shift to substitutes and outsourcing.
5. Threat of new entry the new entrants can reduces the power and if the
organization has little protection in key technologies, the new entrants
can easily enter into market. If have strong and durable barriers, then
can preserve the favorable power and position.
FIG-2 explains the five forces.
FIG-2
(Mind Tools, 2013)
1.1.1 How to apply the environmental techniques in

healthcare organizations
The environmental tools and techniques are the vital part of strategy
development and it shapes the strategy. The foundation of the strategy
provides the purpose statement, organizations ultimate goal and also the
direction to which strategy to lead. The strategy formulation is generated by
combining rational, scientific examination and educated and intuitive guesses.
The environmental analysis tools and techniques are used to obtain the
required information. The strategy development process examines the issues
and decides how the organizations strengths and skills can be used to
address the critical issues. When evaluating the strategy, it considers whether
it addressed the key issues and aligned with mission and financially viable.
Therefore the environmental analysis tools used analyze the problems and use
the information according to the nature of the selected tool.
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1.2 An evaluation of complex environment factors affect healthcare

organizations.
The primary care trusts liable to assess local needs and commission care,
besides that each primary care organizations liable to provide information,
quality and safety to the patients and users. The complex enviornment factors
affect the organizations to peform )its service specified in the vision. The
enviornmental factors (FIG-3) affect the organizations functions and affect the
quality. The individual organization, such as NHS Walk in Centres has to
consider the internal health care enviornment. According to, (Department of
Health, 2013), Good healthcare environments are key drivers of patient
experience. Good environments matter to patients, their visitors and carers
and to staff.
Therefore good health care physical environment are also to be considered
and it consists of:1. Clean Hospitals such as clean, tidy and welcoming and also continuous
improvements to maintain quality cleanliness and it is the responsibility
of everyone.
2. Hospital food is important part of patients health and it should be safe,
good quality, nutritious and it served well presented and served at
convenient time.
3. Ward housekeeping should staff should ensure the cleanliness and be
welcoming and confirm food is tasty and enjoyable and attend patients
non-clinical needs.
4. Patients environment network should be made up of staff with basis
care services to patients and share regularly to meet learning and share
regularly to meet learning and good practices and end enhance the
modernisation needs.
5. The healing environment can improve the patients recovery and clinical
outcomes, also staff working lives. The proper use of colour, light,
texture and sound together create a healing environment. (The National
Archieves, 2013)
These environmental factors are affecting the healthcare industry,
moreover the other government budget regulations and policies, private
sector involvements may also influence the health care organizations. FIG3 explains the various environment factors.
FIG-3
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Political
The legislation may provide incentives and tax breaks to the companies or
may any restrictions impose on companies that affect the transactions. In
public health care sector, if the annual budget of the government provides
more fund to the health care, it leads to the quality of services.
Social
Social factors are the cultural influences that will affect the economic
environment of organizations.
Economic
The economic factor of the organizational environment affects the
organization by on cost of labor, material, processes and procedures, besides
that the economic environment of a society also a factor such as in recession
the business will suffer and in prosperity people spend more may both affect
in differently.
Technological Factors
The enhancement of technology and its use provides organization to perform
better services and it may affect the economy of an organization such as if
implement a useful technology nay increase the productivity, performance and
quality.
1.2.1 An analysis of how environmental factors in which strategy for these

health care organizations is developed.
The analysis of environmental factors by tools and techniques is the part of
strategy generation. The strategic managers consider
these factors when
developing strategic decisions by considering the cultural, ethnic and socio
groups more over the economic to consider challenging to perform and to
work within the budget. Political policies may affect the organization
negatively or positively. The present governments controlled and cutted
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budget is also affect the performance of the health care sector. The
technological developments can make use to improve performance and the
strategy formulation affected by these factors by negatively or positively, but
wise strategy changes and implementation of plans reduces the constraints to
generate quality performance up to a great extent.
1.3 critically evaluate the impacts of the organizational culture of NHS

Walk in Centre on its strategic decisions.
Refers to, (Business Dictionary, 2013), organizational culture is, The values
and behaviours that contribute to the unique social and psychological environment of an
organization. Organizational culture includes an organization's expectations, experiences,
philosophy, and values that hold it together, and is expressed in its self-image, inner
workings, interactions with the outside world, and future expectations. It is based on
shared attitudes, beliefs, customs, and written and unwritten rules that have been
developed over time and are considered valid.
The NHS Walk in centres is managed separately and it has created problems in the
health care systems and industry. Therefore the derived issues likewise, changing trends
in health and illness, prevention of illness, requirement of working closely with GPs
and hospitals, care of old people in their homes and ability to meet the demands
justifiable on medical grounds are the impacts of organizational culture of Walk in
centres.
(Health Knowledge, 2013)
TASK-2
2. The key tensions within strategic management
According to de Wit and Meyer (2005) cited by Frank H T de Langen, pointed
out four areas of strategy such as strategic process, strategic content,
strategic context and strategic purpose, besides that there is strategic issues
and for which it identifies strategic tensions and various perspectives. FIG-4
explains the strategic issues in the four phases with its tensions and
perspectives.
FIG-4
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2.1How the key tensions affect the strategic management

The strategic management process follows the basic five steps such as, define
and review mission, analyze the internal and external environments, identify
goals and objectives, formulation of strategy to obtain the objectives and
implement strategies through projects. The strategic management involved
with the resources and performance in external environment. The strategic
management and process deals with the issues, tensions and perspectives.
(FIG-4)
The creativity and innovation is always accepted by modern management with
logical thinking. The strategy formation affect the tensions created by
environmental issues, such as market and resources, responsiveness,
competency, compliance, control, globalized market condition, profitability
and responsibility to stake holders.
2. 2 A critically evaluation of the impact of key tensions in NHS Walk in

Centre culture and its strategy.
The NHS Walk in centres is managed separately with its own strategy
combined with the overall goal of the DH. Therefore, the tensions or issues to
be solved within the strategy of the NHS Walk in centres and Create the culture
according to fulfil the needs and wants of the multy cultural environment and
generate strategy according to satisfy the tensions within the organization.
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2. 3 how these key tensions affect the development of culture and strategy
in NHS Walk in Centre
The creativity and innovation is always accepted by modern management with
logical thinking. The strategic managers can lead revolutionary change
changes within the organization and act according to the resources available
within the organization and within the environmental issues. The strategic
issues and tensions can be framed in the strategic plan to the perspective of
stake holders value.
TASK 3
3- The strategy formulation techniques
There are various strategy formulation techniques that used to make use of the strategy
process. Out of many the commonly used tools are as followsBCG Matrix
The BCG Matrix method helps to understand the frequently made strategy
mistakes. The BCG matrix based on the product life cycle theory and it used to
decide what priority given to product portfolio of a BUSINESS UNIT. Placing
product in this BCG matrix generates four categories such as:1. Stars high growth and high market share
2. Cash cows low growth and high market share
3. Dogs low growth and low market share
4. Question marks high growth and low market share (FIG-5)
FIG-5
(Value Based Management , 2013)
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The Maslin Multi-Dimensional Matrix

Maslin Multi Dimensional Matrix is a tool to management of a portfolio services
and used to generate strategic planning and it is descriptive and not replace
decision making and deals with the issue of political versus environmental
priority. FIG-6
FIG-6
The Montanari Matrix

Stakeholder Mapping
3.1 A critically evaluation of how strategic formulation techniques related
with NHS Walk in Centre
The strategic formulation techniques are making use of the service sector like
NHS Walk in centers to formulate strategy. Those techniques has user
dimensions such as elected members, concern of the community, other
agencies, availability of finance, non-financial resources and statutory duty.
The different levels may interest in different stake holders and generate
conflicts, if there is common interest the equilibrium can maintain otherwise
conflicts will be the result.
3.2 The systematic analysis of implementation of strategic formulation

techniques in health and social care
The overall strategy formulation designed by having an internal and external
environment analysis and generates a vision statement, mission statement
and defines the company profile to clear the goals of the company and its
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strength, capabilities and management, besides that matching the external

environment with mission statement, company profile to get the vision
statement. Consequently, decide the action for accomplish the mission and
select the long term strategies and short term strategies and also budget and
allocation based on short term strategies and finally implement with the pre
decided review system.
3.3 An investigation of potential problems in implementation of strategic

formulation technique
The strategy formulation is the stages of strategic management that consists
of planning and decision making and it leads to the development of goals and
a specific plan.
3.4 The Solutions for implement strategic formulation techniques in

health and social care
Strategy implementation is part of strategic management that uses both
managerial and organizational tools to allocate resources towards to achieve
strategic outcomes.
TASK 4
4- The methods to develop strategic decisions
The methods used to develop strategic decision making consists to set the
goals and objectives, develop alternative plans, compare the and evaluate the
alternative plans by use of objective criteria and leaders guidance, choose one
of the best alternative choice and implement the plan and also command, lead
and manage, besides that observe the feedbacks and take necessary
corrective steps if required.
4.1 A Systematic analysis of organizational scenarios in order to develop

strategic recommendations
The strategy manager has different tools to decision making and achieve
strategically goals. The changing market spot and market complexities in the
market spot as well as complexities in the market place are variable and the
customer needs and wants also changing and demanding. Scenario planning
will help to chart a course to move forward and it let to think WHAT IF?, that is
the possibilities could happen and it lead to organizational thinking,
brainstorming, planning and also decision making. The benefits of scenario
planning are:1. Expands the thinking
2. Uncover near-inevitable future
3. Protect against group think
The scenario planning helps the organizations to stay nimble, prepared and
able to improvise.
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4.2- A critically analysis of the appropriateness of the organizational

scenarios in order to develop strategic recommendations in NHS Walk
in Centre.
The NHS Walk in centres is managed separately and it has created problems in the
health care systems and industry. Therefore the derived issues likewise, changing trends
in health and illness, prevention of illness, requirement of working closely with GPs
and hospitals, care of old people in their homes and ability to meet the demands
justifiable on medical grounds are the impacts of organizational culture of Walk in
centres.
Therefore to provide choice for treatment, hospital and appointment time with
information, quality and safety in both primary and secondary care required
fund, direction and support, besides that to access the local needs and to
commission care with managing, monitoring and improving local. Obviously to
overcome these constraints required new strategy formulation, so it is
significant to understand the key tensions and also internal and external
environment within public and non-profit organisations operates in order to
formulate the appropriate strategic decisions.
The scenario planning may helps to overcome the derived issues. The" if"
question asked here in this situations get solutions for the issues.
4.3- An analysis of constraints facing in NHS Walk in Centre by managers

developing strategic policies.
Refers to Dr. C. Salisbury in his research paper about the comprehensive
evaluation of NHS Walk in centers against criteria of improved success,
quality, user justification and efficiency resulted in key finding and discloses
the problems in different areas and it may the constraints of strategy
managers when in strategy decision making process. The problem areas are Access to health care
Quality of care
Appropriateness of care
Impact on other NHS providers
Efficiency
Discussion
Balancing demand and needs
Increasing total demand
The impact on continuity of care
Problems with Information Technology
Tension between professional judgment and the use of protocols
Professional roles
Tension between a clear national identity and local control
The whole system prospective
efficiency
(Salisbury, 2003)
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Conclusion
The health and social care industry and systems works closely with the
environments and the ultimate aim of those health care organizations is to
provide maximum quality services and required to avoid the constraints and
tensions from the environments, on this circumstances , the responsibility of
the strategy managers are increasing and demanding dynamic strategic policy
and decisions. The environmental tensions and constraints obviously
influence the strategic policy, moreover the responsibility of social and health
care organizations is to provide maximum quality service to the patients and
users within the limits of those environmental tensions and constraints, as a
result of this the responsibility of the strategic managers is increased and their
success depends and determined on the successful management of those
obstacles in the health and social care industry.
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Strategic Management In Public and non-profit Organisations. Assignment.